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VOLUME 5
Titles 47 through 62A
2004
REVISED CODE OF WASHINGTON
Published under the authority of chapter 1.08 RCW.
Containing all laws of a general and permanent nature through the 2004 regular session, which
adjourned sine die March 11, 2004.
(2004 Ed.)
[Preface—p i]
REVISED CODE OF WASHINGTON
2004 Edition
©
2004 State of Washington
CERTIFICATE
The 2004 edition of the Revised Code of Washington, published officially by the Statute Law Committee, is, in accordance with RCW 1.08.037, certified to comply with the current specifications of the committee.
JOHN G . SCHULTZ, Chair
STATUTE LAW COMMITTEE
PRINTED ON RECYCLABLE MATERIAL
For recycling information call:
Recycle Hotline
1-800-732-9253
[Preface—p ii]
(2004 Ed.)
PREFACE
Numbering system: The number of each section of this code is made up of three parts, in sequence as follows: Number of title; number of chapter within the title; number of section within the chapter. Thus RCW
1.04.020 is Title 1, chapter 4, section 20. The section part of the number (.020) is initially made up of three digits,
constitutes a true decimal, and provides a facility for numbering new sections to be inserted between old sections
already consecutively numbered, merely by adding one or more digits at the end of the number. In most chapters of
the code, sections have been numbered by tens (.010, .020, .030, .040, etc.), leaving nine vacant numbers between
original sections so that for a time new sections may be inserted without extension of the section number beyond
three digits.
Citation to the Revised Code of Washington: The code should be cited as RCW; see RCW 1.04.040. An
RCW title should be cited Title 7 RCW. An RCW chapter should be cited chapter 7.24 RCW. An RCW section
should be cited RCW 7.24.010. Through references should be made as RCW 7.24.010 through 7.24.100. Series of
sections should be cited as RCW 7.24.010, 7.24.020, and 7.24.030.
History of the Revised Code of Washington; Source notes: The Revised Code of Washington was
adopted by the legislature in 1950; see chapter 1.04 RCW. The original publication (1951) contained material variances from the language and organization of the session laws from which it was derived, including a variety of divisions and combinations of the session law sections. During 1953 through 1959, the Statute Law Committee, in
exercise of the powers contained in chapter 1.08 RCW, completed a comprehensive study of these variances and, by
means of a series of administrative orders or reenactment bills, restored each title of the code to reflect its session
law source, but retaining the general codification scheme originally adopted. An audit trail of this activity has been
preserved in the concluding segments of the source note of each section of the code so affected. The legislative
source of each section is enclosed in brackets [ ] at the end of the section. Reference to session laws is abbreviated;
thus "1891 c 23 § 1; 1854 p 99 § 135" refers to section 1, chapter 23, Laws of 1891 and section 135, page 99, Laws
of 1854. "Prior" indicates a break in the statutory chain, usually a repeal and reenactment. "RRS or Rem. Supp.—
—" indicates the parallel citation in Remington's Revised Code, last published in 1949.
Where, before restoration, a section of this code constituted a consolidation of two or more sections of the
session laws, or of sections separately numbered in Remington's, the line of derivation is shown for each component
section, with each line of derivation being set off from the others by use of small Roman numerals, "(i)," "(ii)," etc.
Where, before restoration, only a part of a session law section was reflected in a particular RCW section the
history note reference is followed by the word "part."
"Formerly" and its correlative form "FORMER PART OF SECTION" followed by an RCW citation preserves the record of original codification.
Double amendments: Some double or other multiple amendments to a section made without reference to
each other are set out in the code in smaller (8-point) type. See RCW 1.12.025.
Index: Titles 1 through 91 are indexed in the RCW General Index. Separate indexes are provided for the
Rules of Court and the State Constitution.
Sections repealed or decodified; Disposition table: Memorials to RCW sections repealed or decodified
are tabulated in numerical order in the table entitled "Disposition of former RCW sections."
Codification tables: To convert a session law citation to its RCW number (for Laws of 1951 or later) consult the codification tables. A similar table is included to relate the disposition in RCW of sections of Remington's
Revised Statutes.
Errors or omissions: (1) Where an obvious clerical error has been made in the law during the legislative
process, the code reviser adds a corrected word, phrase, or punctuation mark in [brackets] for clarity. These additions do not constitute any part of the law.
(2) Although considerable care has been taken in the production of this code, within the limits of available
time and facilities it is inevitable that in so large a work that there will be errors, both mechanical and of judgment.
When those who use this code detect errors in particular sections, a note citing the section involved and the nature of
the error may be sent to: Code Reviser, Box 40551, Legislative Building, Olympia, WA 98504-0551, so that correction may be made in a subsequent publication.
(2004 Ed.)
[Preface—p iii]
TITLES OF THE REVISED CODE OF WASHINGTON
1
46
47
Highways and motor vehicles
Motor vehicles
Public highways and transportation
48
Insurance
49
50
51
Labor
Labor regulations
Unemployment compensation
Industrial insurance
52
53
54
55
57
Local service districts
Fire protection districts
Port districts
Public utility districts
Sanitary districts
Water-sewer districts
58
59
60
61
62A
63
64
65
Property rights and incidents
Boundaries and plats
Landlord and tenant
Liens
Mortgages, deeds of trust, and real estate contracts
Uniform Commercial Code
Personal property
Real property and conveyances
Recording, registration, and legal publication
66
67
68
69
70
71
71A
72
74
Public health, safety, and welfare
Alcoholic beverage control
Sports and recreation—Convention facilities
Cemeteries, morgues, and human remains
Food, drugs, cosmetics, and poisons
Public health and safety
Mental illness
Developmental disabilities
State institutions73Veterans and veterans' affairs
Public assistance
76
77
78
79
79A
Public resources
Forests and forest products
Fish and wildlife
Mines, minerals, and petroleum
Public lands
Public recreational lands
80
81
Public service
Public utilities
Transportation
82
83
84
Taxation
Excise taxes
Estate taxation
Property taxes
85
86
87
88
89
90
91
Waters
Diking and drainage
Flood control
Irrigation
Navigation and harbor improvements
Reclamation, soil conservation, and land settlement
Water rights—Environment
Waterways
General provisions
2
3
4
5
6
7
8
9
9A
10
11
12
13
Judicial
Courts of record
District courts—Courts of limited jurisdiction
Civil procedure
Evidence
Enforcement of judgments
Special proceedings and actions
Eminent domain
Crimes and punishments
Washington Criminal Code
Criminal procedure
Probate and trust law
District courts—Civil procedure
Juvenile courts and juvenile offenders
14
Aeronautics
15
16
17
Agriculture
Agriculture and marketing
Animals and livestock
Weeds, rodents, and pests
18
19
20
21
22
Businesses and professions
Businesses and professions
Business regulations—Miscellaneous
Commission merchants—Agricultural products
Securities and investments
Warehousing and deposits
23
23B
24
25
Corporations, associations, and partnerships
Corporations and associations (Profit)
Washington business corporation act
Corporations and associations (Nonprofit)
Partnerships
26
Domestic relations
27
28A
28B
28C
Education
Libraries, museums, and historical activities
Common school provisions
Higher education
Vocational education
29A
Elections
30
31
32
33
Financial institutions
Banks and trust companies
Miscellaneous loan agencies
Mutual savings banks
Savings and loan associations
34
35
35A
36
37
38
39
40
41
42
43
44
Government
Administrative law
Cities and towns
Optional Municipal Code
Counties
Federal areas—Indians
Militia and military affairs
Public contracts and indebtedness
Public documents, records, and publications
Public employment, civil service, and pensions
Public officers and agencies
State government—Executive
State government—Legislative
[Preface—p iv]
(2004 Ed.)
Title 47
Chapters
47.01
47.02
47.04
47.05
47.06
47.06A
47.06B
47.06C
47.08
47.10
47.12
47.14
47.17
47.20
47.22
47.24
47.26
47.28
47.30
47.32
47.36
47.38
47.39
47.40
47.41
47.42
47.44
47.46
47.48
47.50
47.52
47.56
47.58
47.60
47.61
47.64
47.66
47.68
47.72
47.74
47.76
47.78
47.79
47.80
47.82
47.98
Title 47
PUBLIC HIGHWAYS AND TRANSPORTATION
Department of transportation.
Department buildings.
General provisions.
Priority programming for highway development.
Statewide transportation planning.
Freight mobility.
Coordinating special needs transportation.
Permit efficiency and accountability.
Highway funds.
Highway construction bonds.
Acquisition and disposition of state highway
property.
Right of way donations.
State highway routes.
Miscellaneous projects.
Combination highway routes.
City streets as part of state highways.
Development in urban areas—Urban arterials.
Construction and maintenance of highways.
Trails and paths.
Obstructions on right of way.
Traffic control devices.
Roadside areas—Safety rest areas.
Scenic and Recreational Highway Act of 1967.
Roadside improvement and beautification.
Junkyards adjacent to interstate and primary
highways.
Highway advertising control act—Scenic Vistas Act.
Franchises on state highways.
Public-private transportation initiatives.
Closing highways and restricting traffic.
Highway access management.
Limited access facilities.
State toll bridges, tunnels, and ferries.
Existing and additional bridges.
Puget Sound ferry and toll bridge system.
Acquisition of new ferry vessels under Urban
Mass Transportation Act of 1964.
Marine employees—Public employment relations.
Multimodal transportation programs.
Aeronautics.
Navigation canals.
Multistate Highway Transportation Agreement.
Rail freight service.
High capacity transportation development.
High-speed ground transportation.
Regional transportation planning organizations.
Amtrak.
Construction.
Abandoned highways, transfer to counties, cities: RCW 36.75.090.
Accidents and reports: Chapter 46.52 RCW.
(2004 Ed.)
Annual report of street operations to secretary of transportation: RCW
35.21.260.
Arterial highways, designation: RCW 46.61.195.
Bicycles, operation: Chapter 46.61 RCW.
Buses, unlawful conduct: RCW 9.91.025.
City streets, sidewalks, etc.: Chapters 35.68 through 35.79 RCW.
Columbia Basin project road systems: RCW 36.81.140.
Contractor's bond: Chapter 39.08 RCW.
Contractors on highway projects prequalified under RCW 47.28.070
exempted from contractor's registration requirement: RCW
18.27.090.
County highways in cities and towns: Chapter 36.89 RCW.
County road improvement districts: Chapter 36.88 RCW.
County roads and bridges: Chapters 36.75 through 36.88 RCW.
Dangerous substances or devices, placing on highway: RCW 9.66.050,
70.93.060.
Design standards committee
arterial streets: Chapter 35.78 RCW.
generally: Chapter 43.32 RCW.
Driving while intoxicated when engaged in discharge of business duties:
RCW 9.91.020.
Electrical installations, applicability of statutes or rules: RCW 19.28.141.
Fences: Chapter 16.60 RCW.
Fireworks, transportation, etc.: Chapter 70.77 RCW.
Flaggers—Safety standards: RCW 49.17.350.
Glass, tacks, rubbish, etc., throwing in highway: RCW 9.66.050, 46.61.645.
Highway construction or improvement, validity of agreement to indemnify
against liability for negligence relative to: RCW 4.24.115.
Highway funds, constitutional limitations: State Constitution Art. 2 § 40
(Amendment 18).
Hospitalization and medical aid for public employees and dependents—Premiums, governmental contributions authorized: RCW 41.04.180,
41.04.190.
Jurisdiction over operation of motor vehicles by Indians: Chapter 37.12
RCW.
Liens for labor, materials on public works: Chapter 60.28 RCW.
Littering on public highway: RCW 70.93.060.
Obstructing highway is public nuisance: RCW 9.66.010.
Off-street parking
cities: Chapter 35.86 RCW.
towns: RCW 35.27.550 through 35.27.590.
Platted streets as public highways: RCW 58.08.035, 58.08.050.
Port districts, toll facilities: Chapter 53.34 RCW.
Public lands, withdrawal of abutting: RCW 79A.05.105.
Range areas, road signs: RCW 16.24.060.
Real property conveyances by public bodies—Recording: RCW 65.08.095.
Rules of the road: Chapter 46.61 RCW.
Size, weight, load of vehicles: Chapter 46.44 RCW.
Speed limits: RCW 46.61.400 through 46.61.470.
State patrol: Chapter 43.43 RCW.
Traffic safety commission and program: Chapter 43.59 RCW.
Viaducts, bridges, elevated roadways, tunnels, etc., authority of cities to construct: Chapter 35.85 RCW.
Waterways: Title 91 RCW.
[Title 47 RCW—page 1]
Chapter 47.01
Chapter 47.01
Title 47 RCW: Public Highways and Transportation
Chapter 47.01 RCW
DEPARTMENT OF TRANSPORTATION
Sections
47.01.011
47.01.012
47.01.021
47.01.031
47.01.041
47.01.051
47.01.061
47.01.070
47.01.071
47.01.081
47.01.091
47.01.101
47.01.131
47.01.141
47.01.145
47.01.170
47.01.180
47.01.190
47.01.210
47.01.230
47.01.240
47.01.250
47.01.260
47.01.270
47.01.280
47.01.290
47.01.300
47.01.310
47.01.321
Legislative declaration.
Intent—2002 c 5.
Definitions.
Department created—Transfer of powers, duties, and functions.
Secretary of transportation—Appointment, salary, removal.
Commission created—Appointment of members—Terms—
Qualifications—Removal.
Commission—Procedures and internal operations.
Director's and commissioner's prior assignments may be delegated.
Commission—Functions, powers, and duties.
Department—Organization—Management personnel.
Advisory councils.
Secretary—Authority and duties.
Continuation of state services to department.
Biennial report.
Study reports available to legislators upon request.
Right of entry.
Roads and bridges in state parks.
State aid engineer.
Contract without bid or bond with public utilities and municipal corporations.
Powers relating to toll bridges and facilities and state ferries.
Coordination of long-range needs studies.
Consultation with designated state officials.
Authority of department.
Radioactive or hazardous cargo, notice of prohibition.
Application for improvements to existing highways.
Environmental review of transportation projects.
Environmental review of transportation projects—Cooperation with other environmental regulatory authorities.
Washington fruit express account.
Skills bank—Report.
Collection agencies, use by public bodies to collect public debts—Fees:
RCW 19.16.500.
Cross-state trail—Rail line franchise negotiations: RCW 79A.05.125.
Flaggers—Safety standards: RCW 49.17.350.
Interagency committee for outdoor recreation, secretary of transportation
member of: RCW 79A.25.110.
Mt. St. Helens eruption, facilitating recovery from—Scope of state agency
action: RCW 43.01.210.
Secretary's duties
generally: RCW 46.68.120.
motor vehicle fund, distribution of amount to counties—Factors of distribution formula for RCW 46.68.120(4) funds: RCW 46.68.122.
population, road cost, money need, computed—Allocation percentage
adjustment, when: RCW 46.68.124.
Traffic safety commission, secretary of transportation member of: RCW
43.59.030.
Trails system, Washington state recreation, department of transportation
participation: RCW 79A.35.120.
47.01.011
47.01.011 Legislative declaration. The legislature
hereby recognizes the following imperative needs within the
state: To create a statewide transportation development plan
which identifies present status and sets goals for the future; to
coordinate transportation modes; to promote and protect land
use programs required in local, state and federal law; to coordinate transportation with the economic development of the
state; to supply a broad framework in which regional, metropolitan, and local transportation needs can be related; to facilitate the supply of federal and state aid to those areas which
will most benefit the state as a whole; to provide for public
involvement in the transportation planning and development
process; to administer programs within the jurisdiction of this
title relating to the safety of the state's transportation systems;
[Title 47 RCW—page 2]
and to coordinate and implement national transportation policy with the state transportation planning program.
The legislature finds and declares that placing all elements of transportation in a single department is fully consistent with and shall in no way impair the use of moneys in the
motor vehicle fund exclusively for highway purposes.
Through this chapter, a unified department of transportation is created. To the jurisdiction of this department will be
transferred the present powers, duties, and functions of the
department of highways, the highway commission, the toll
bridge authority, the aeronautics commission, and the canal
commission, and the transportation related powers, duties,
and functions of the *planning and community affairs
agency. [1977 ex.s. c 151 § 1.]
*Reviser's note: "Planning and community affairs agency" means
"department of community, trade, and economic development."
47.01.012
47.01.012 Intent—2002 c 5. It is the intent of the legislature to establish policy goals for the operation, performance
of, and investment in, the state's transportation system. The
policy goals shall consist of, but not be limited to, the following benchmark categories, adopted by the state's Blue Ribbon
Commission on Transportation on November 30, 2000. In
addition to improving safety, public investments in transportation shall support achievement of these and other priority
goals:
No interstate highways, state routes, and local arterials
shall be in poor condition; no bridges shall be structurally
deficient, and safety retrofits shall be performed on those
state bridges at the highest seismic risk levels; traffic congestion on urban state highways shall be significantly reduced
and be no worse than the national mean; delay per driver shall
be significantly reduced and no worse than the national
mean; per capita vehicle miles traveled shall be maintained at
2000 levels; the nonauto share of commuter trips shall be
increased in urban areas; administrative costs as a percentage
of transportation spending shall achieve the most efficient
quartile nationally; and the state's public transit agencies shall
achieve the median cost per vehicle revenue hour of peer
transit agencies, adjusting for the regional cost-of-living.
These policy goals shall be the basis for establishment of
detailed and measurable performance benchmarks.
It is the intent of the legislature that the transportation
commission establish performance measures to ensure transportation system performance at local, regional, and state
government levels, and the transportation commission should
work with appropriate government entities to accomplish
this. [2002 c 5 § 101.]
Effective date—2002 c 5 § 101: "Section 101 of this act takes effect
July 1, 2002." [2002 c 5 § 102.]
Captions not law—2002 c 5: "Captions and part headings used in this
act are not part of the law." [2002 c 5 § 419.]
Severability—2002 c 5: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [2002 c 5 § 420.]
47.01.021
47.01.021 Definitions. As used in this title unless the
context indicates otherwise:
(1) "Department" means the department of transportation created in RCW 47.01.031;
(2004 Ed.)
Department of Transportation
(2) "Commission" means the transportation commission
created in RCW 47.01.051;
(3) "Secretary" means the secretary of transportation as
provided for in RCW 47.01.041. [1977 ex.s. c 151 § 2.]
Additional definitions: RCW 47.04.010.
47.01.031
47.01.031 Department created—Transfer of powers,
duties, and functions. (1) There is created a department of
state government to be known as the department of transportation.
(2) All powers, duties, and functions vested by law in the
department of highways, the state highway commission, the
director of highways, the Washington toll bridge authority,
the aeronautics commission, the director of aeronautics, and
the canal commission, and the transportation related powers,
duties, and functions of the *planning and community affairs
agency, are transferred to the jurisdiction of the department,
except those powers, duties, and functions which are
expressly directed elsewhere in **this or in any other act of
the 1977 legislature.
(3) The board of pilotage commissioners is transferred to
the jurisdiction of the department for its staff support and
administration: PROVIDED, That nothing in this section
shall be construed as transferring any policy making powers
of the board of pilotage commissioners to the transportation
commission or the department of transportation. [1988 c 167
§ 11; 1977 ex.s. c 151 § 3.]
Reviser's note: *(1) The "planning and community affairs agency" has
been renamed the "department of community, trade, and economic development."
**(2) For codification of "this . . . . act" [1977 ex.s. c 151], see Codification Tables, Volume 0.
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
47.01.041
47.01.041 Secretary of transportation—Appointment, salary, removal. The executive head of the department of transportation shall be the secretary of transportation,
who shall be appointed by the transportation commission,
and shall be paid a salary to be fixed by the governor in accordance with the provisions of RCW 43.03.040. The secretary
shall be an ex officio member of the commission without a
vote. The secretary shall be the chief executive officer of the
commission and be responsible to it, and shall be guided by
policies established by it. The secretary shall serve until
removed by the commission, but only for incapacity, incompetence, neglect of duty, malfeasance in office, or failure to
carry out the commission's policies. Before a motion for dismissal shall be acted on by the commission, the secretary
shall be granted a hearing on formal written charges before
the full commission. An action by the commission to remove
the secretary shall be final. [1983 1st ex.s. c 53 § 28; 1977
ex.s. c 151 § 4.]
Severability—1983 1st ex.s. c 53: See note following RCW 47.10.802.
47.01.051
47.01.051 Commission created—Appointment of
members—Terms—Qualifications—Removal. There is
hereby created a transportation commission, which shall consist of seven members appointed by the governor, with the
consent of the senate. The present five members of the highway commission shall serve as five initial members of the
(2004 Ed.)
47.01.061
transportation commission until their terms of office as highway commission members would have expired. The additional two members provided herein for the transportation
commission shall be appointed for initial terms to expire on
June 30, 1982, and June 30, 1983. Thereafter all terms shall
be for six years. No elective state official or state officer or
state employee shall be a member of the commission, and not
more than four members of the commission shall at the time
of appointment or thereafter during their respective terms of
office be members of the same major political party. At the
time of appointment or thereafter during their respective
terms of office, four members of the commission shall reside
in the western part of the state and three members shall reside
in the eastern part of the state as divided north and south by
the summit of the Cascade mountains. No more than two
members of the commission shall reside in the same county.
Commissioners shall not be removed from office by the governor before the expiration of their terms unless for a disqualifying change of residence or for cause based upon a determination of incapacity, incompetence, neglect of duty, or malfeasance in office by the superior court of the state of
Washington in and for Thurston county upon petition and
show cause proceedings duly brought therefor in said court
and directed to the commissioner in question. No member
shall be appointed for more than two consecutive terms.
[1977 ex.s. c 151 § 5.]
47.01.061
47.01.061 Commission—Procedures and internal
operations. The commission shall meet at such times as it
deems advisable but at least once every month. It may adopt
its own rules and regulations and may establish its own procedure. It shall act collectively in harmony with recorded resolutions or motions adopted by majority vote of at least four
members. The commission may appoint an administrative
secretary, and shall elect one of its members chairman for a
term of one year. The chairman shall be able to vote on all
matters before the commission. The commission may from
time to time retain planners, consultants, and other technical
personnel to advise it in the performance of its duties.
The commission shall submit to each regular session of
the legislature held in an odd-numbered year its own budget
proposal necessary for the commission's operations separate
from that proposed for the department.
Each member of the commission shall be compensated
in accordance with RCW 43.03.250 and shall be reimbursed
for actual necessary traveling and other expenses in going to,
attending, and returning from meetings of the commission,
and actual and necessary traveling and other expenses
incurred in the discharge of such duties as may be requested
by a majority vote of the commission or by the secretary of
transportation, but in no event shall a commissioner be compensated in any year for more than one hundred twenty days,
except the chairman of the commission who may be paid
compensation for not more than one hundred fifty days. Service on the commission shall not be considered as service
credit for the purposes of any public retirement system.
[1987 c 364 § 2; 1984 c 287 § 94; 1983 1st ex.s. c 53 § 29;
1981 c 59 § 1; 1977 ex.s. c 151 § 6.]
Legislative findings—Severability—Effective date—1984 c 287:
See notes following RCW 43.03.220.
Severability—1983 1st ex.s. c 53: See note following RCW 47.10.802.
[Title 47 RCW—page 3]
47.01.070
Title 47 RCW: Public Highways and Transportation
47.01.070
47.01.070 Director's and commissioner's prior
assignments may be delegated. In all situations wherein the
director of highways, the director of aeronautics or any one of
their designees, or any member of the highway commission,
the toll bridge authority, the aeronautics commission, or the
canal commission or any one of their designees was on September 21, 1977, designated or serving as a member of any
board, commission, committee, or authority, the chairman of
the transportation commission or the chairman's designee
who shall be an employee of the department of transportation, shall hereafter determine who shall serve as such member. [1977 ex.s. c 151 § 27; 1961 c 13 § 47.01.070. Prior:
1951 c 247 § 5. Formerly RCW 43.27.120.]
47.01.071
47.01.071 Commission—Functions, powers, and
duties. The transportation commission shall have the following functions, powers, and duties:
(1) To propose policies to be adopted by the legislature
designed to assure the development and maintenance of a
comprehensive and balanced statewide transportation system
which will meet the needs of the people of this state for safe
and efficient transportation services. Wherever appropriate
the policies shall provide for the use of integrated, intermodal
transportation systems to implement the social, economic,
and environmental policies, goals, and objectives of the people of the state, and especially to conserve nonrenewable natural resources including land and energy. To this end the
commission shall:
(a) Develop transportation policies which are based on
the policies, goals, and objectives expressed and inherent in
existing state laws;
(b) Inventory the adopted policies, goals, and objectives
of the local and area-wide governmental bodies of the state
and define the role of the state, regional, and local governments in determining transportation policies, in transportation planning, and in implementing the state transportation
plan;
(c) Propose a transportation policy for the state, and after
notice and public hearings, submit the proposal to the legislative transportation committee and the senate and house transportation committees by January 1, 1978, for consideration in
the next legislative session;
(d) Establish a procedure for review and revision of the
state transportation policy and for submission of proposed
changes to the legislature;
(e) To integrate the statewide transportation plan with
the needs of the elderly and handicapped, and to coordinate
federal and state programs directed at assisting local governments to answer such needs;
(2) To establish the policy of the department to be followed by the secretary on each of the following items:
(a) To provide for the effective coordination of state
transportation planning with national transportation policy,
state and local land use policies, and local and regional transportation plans and programs;
(b) To provide for public involvement in transportation
designed to elicit the public's views both with respect to adequate transportation services and appropriate means of minimizing adverse social, economic, environmental, and energy
impact of transportation programs;
[Title 47 RCW—page 4]
(c) To provide for the administration of grants in aid and
other financial assistance to counties and municipal corporations for transportation purposes;
(d) To provide for the management, sale, and lease of
property or property rights owned by the department which
are not required for transportation purposes;
(3) To direct the secretary to prepare and submit to the
commission a comprehensive and balanced statewide transportation plan which shall be based on the transportation policy adopted by the legislature and applicable state and federal
laws. After public notice and hearings, the commission shall
adopt the plan and submit it to the legislative transportation
committee and to the house and senate standing committees
on transportation before January 1, 1980, for consideration in
the 1980 regular legislative session. The plan shall be
reviewed and revised prior to each regular session of the legislature during an even-numbered year thereafter. A preliminary plan shall be submitted to such committees by January
1, 1979.
The plan shall take into account federal law and regulations relating to the planning, construction, and operation of
transportation facilities;
(4) To propose to the governor and the legislature prior
to the convening of each regular session held in an odd-numbered year a recommended budget for the operations of the
commission as required by RCW 47.01.061;
(5) To approve and propose to the governor and to the
legislature prior to the convening of each regular session during an odd-numbered year a recommended budget for the
operation of the department and for carrying out the program
of the department for the ensuing biennium. The proposed
budget shall separately state the appropriations to be made
from the motor vehicle fund for highway purposes in accordance with constitutional limitations and appropriations and
expenditures to be made from the general fund, or accounts
thereof, and other available sources for other operations and
programs of the department;
(6) To review and authorize all departmental requests for
legislation;
(7) To approve the issuance and sale of all bonds authorized by the legislature for capital construction of state highways, toll facilities, Columbia Basin county roads (for which
reimbursement to the motor vehicle fund has been provided),
urban arterial projects, and aviation facilities;
(8) To adopt such rules, regulations, and policy directives as may be necessary to carry out reasonably and properly those functions expressly vested in the commission by
statute;
(9) To delegate any of its powers to the secretary of
transportation whenever it deems it desirable for the efficient
administration of the department and consistent with the purposes of this title;
(10) To exercise such other specific powers and duties as
may be vested in the transportation commission by this or any
other provision of law. [1981 c 59 § 2; 1980 c 87 § 45; 1977
ex.s. c 151 § 7.]
Powers, duties, and studies by legislative transportation committee: RCW
44.40.020.
47.01.081
47.01.081 Department—Organization—Management personnel. (1) Initially the department shall be orga(2004 Ed.)
Department of Transportation
nized into divisions, including the division of highways, the
division of public transportation, the division of aeronautics,
the division of marine transportation, and the division of
transportation planning and budget.
(2) The secretary may reorganize divisions in order to
attain the maximum possible efficiency in the operation of
the department. Each division shall be headed by an assistant
secretary to be appointed by the secretary. The secretary may
also appoint a deputy secretary as may be needed for the performance of the duties and functions vested in the department
and may also appoint up to twelve ferry system management
positions as defined in RCW 47.64.011. The secretary may
delegate to officers within the several divisions of the department authority to employ personnel necessary to discharge
the responsibilities of the department.
(3) The officers appointed under this section shall be
exempt from the provisions of the state civil service law and
shall be paid salaries to be fixed by the governor in accordance with the procedure established by law for the fixing of
salaries for officers exempt from the operation of the state
civil service law. [1984 c 48 § 1; 1977 ex.s. c 151 § 8.]
47.01.170
to execute the policy established by the commission pursuant
to its legislative authority;
(8) To execute and implement the biennial operating
budget for the operation of the department in accordance with
chapter 43.88 RCW and with legislative appropriation and, in
such manner as prescribed therein, to make and report to the
commission and the chairs of the transportation committees
of the senate and house of representatives, including one
copy to the staff of each of the committees, deviations from
the planned biennial category A and H highway construction
programs necessary to adjust to unexpected delays or other
unanticipated circumstances.
(9) To exercise all other powers and perform all other
duties as are now or hereafter provided by law. [1987 c 505
§ 48; 1987 c 179 § 1; 1983 1st ex.s. c 53 § 30; 1977 ex.s. c
151 § 10.]
Reviser's note: This section was amended by 1987 c 179 § 1 and by
1987 c 505 § 48, each without reference to the other. Both amendments are
incorporated in the publication of this section under RCW 1.12.025(2). For
rule of construction, see RCW 1.12.025(1).
Severability—1983 1st ex.s. c 53: See note following RCW 47.10.802.
Regulations governing parking facilities: RCW 46.61.577.
47.01.091 Advisory councils. The secretary shall
establish such advisory councils as are necessary to carry out
the purposes of *this 1977 amendatory act, and to insure adequate public participation in the planning and development of
transportation facilities. Members of such councils shall
serve at the pleasure of the secretary and may receive per
diem and necessary expenses, in accordance with RCW
43.03.050 and 43.03.060, as now or hereafter amended.
[1977 ex.s. c 151 § 9.]
47.01.091
47.01.131
47.01.131 Continuation of state services to department. All state officials required to maintain contact with or
provide services for any of the departments or agencies
whose functions are transferred by RCW 47.01.031 shall
continue to perform such services for the department of transportation unless otherwise directed by this title. [1977 ex.s. c
151 § 18.]
47.01.141
*Reviser's note: For codification of "this 1977 amendatory act" [1977
ex.s. c 151], see Codification Tables, Volume 0.
47.01.101 Secretary—Authority and duties. The secretary shall have the authority and it shall be his or her duty,
subject to policy guidance from the commission:
(1) To serve as chief executive officer of the department
with full administrative authority to direct all its activities;
(2) To organize the department as he or she may deem
necessary to carry out the work and responsibilities of the
department effectively;
(3) To designate and establish such transportation district or branch offices as may be necessary or convenient, and
to appoint assistants and delegate any powers, duties, and
functions to them or any officer or employee of the department as deemed necessary to administer the department efficiently;
(4) To direct and coordinate the programs of the various
divisions of the department to assure that they achieve the
greatest possible mutual benefit, produce a balanced overall
effort, and eliminate unnecessary duplication of activity;
(5) To adopt all department rules that are subject to the
adoption procedures contained in the state administrative
procedure act, except rules subject to adoption by the commission pursuant to statute;
(6) To maintain and safeguard the official records of the
department, including the commission's recorded resolutions
and orders;
(7) To provide full staff support to the commission to
assist it in carrying out its functions, powers, and duties and
47.01.101
(2004 Ed.)
47.01.141 Biennial report. The department shall submit a biennial report to the governor and chairs of the transportation committees of the senate and house of representatives with a copy to the staff of each of the committees,
including but not limited to operational and construction
activities of the preceding fiscal period as the department
deems important and recommendations for future operations
of the department. [1987 c 505 § 49; 1984 c 7 § 75; 1977 c
75 § 68; 1973 2nd ex.s. c 12 § 1.]
Severability—1984 c 7: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1984 c 7 § 389.]
47.01.145
47.01.145 Study reports available to legislators upon
request. Whenever a study report prepared by the department for the legislative transportation committee is made
available to the committee or its members, the report shall,
upon request, be made available to any member of the Washington state legislature. [1984 c 7 § 76; 1971 ex.s. c 195 § 6;
1967 ex.s. c 145 § 78.]
Severability—1984 c 7: See note following RCW 47.01.141.
Severability—1971 ex.s. c 195: See note following RCW 44.40.010.
Budget, plan for highway development: Chapter 47.05 RCW.
47.01.170
47.01.170 Right of entry. The department or its duly
authorized and acting assistants, agents, or appointees have
the right to enter upon any land, real estate, or premises in this
state, whether public or private, for purposes of making
examinations, locations, surveys, and appraisals for highway
[Title 47 RCW—page 5]
47.01.180
Title 47 RCW: Public Highways and Transportation
purposes. The making of any such entry for those purposes
does not constitute any trespass by the department or by its
duly authorized and acting assistants, agents, or appointees.
[1984 c 7 § 77; 1961 c 13 § 47.01.170. Prior: 1945 c 176 § 1;
Rem. Supp. 1945 § 6400-3f. Formerly RCW 43.27.030.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.01.180
47.01.180 Roads and bridges in state parks. The
department is authorized at the request of, and upon plans
approved by the state parks and recreation commission, to
construct and maintain vehicular roads, highways, and
bridges within the limits of the several state parks. [1984 c 7
§ 78; 1961 c 13 § 47.01.180. Prior: 1943 c 253 § 1; Rem.
Supp. 1943 § 6402-35. Formerly RCW 43.27.040.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.01.190
47.01.190 State aid engineer. The secretary shall
appoint, with the approval of the governor, a qualified assistant to be designated as "state aid engineer" whose duties
shall consist of the administration of the program of state aid
in the matter of county roads and city streets. [1984 c 7 § 79;
1961 c 13 § 47.01.190. Prior: 1949 c 220 § 2; Rem. Supp.
1949 § 4600-3g. Formerly RCW 43.27.050.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.01.210
47.01.210 Contract without bid or bond with public
utilities and municipal corporations. It is lawful for the
department to contract without advertising or bid, or performance bond, with any public utility, whether publicly or privately operated, or with any municipal corporation or political subdivision of the state, for the performance of any work
or the furnishing of any service of a type ordinarily performed or furnished by such utility, or by such municipal corporation or political subdivision, whenever, in the opinion of
the department, the interest of the public will be best served.
[1984 c 7 § 80; 1961 c 13 § 47.01.210. Prior: 1955 c 84 § 1;
1953 c 100 § 1. Formerly RCW 43.27.105.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.01.230
47.01.230 Powers relating to toll bridges and facilities and state ferries. See RCW 47.56.030.
47.01.240
47.01.240 Coordination of long-range needs studies.
The department and the transportation improvement board
shall coordinate their activities relative to long-range needs
studies, in accordance with the provisions of chapter 47.05
RCW and RCW 47.26.170, respectively, in order that longrange needs data may be developed and maintained on an
integrated and comparable basis. Needs data for county roads
and city streets in nonurban areas shall be provided by the
counties and cities to the department in such form and extent
as requested by the department, after consultation with the
county road administration board and the association of
Washington cities, in order that needs data may be obtained
on a comparable basis for all highways, roads, and streets in
Washington. [1988 c 167 § 12; 1984 c 7 § 82; 1971 ex.s. c
195 § 10.]
Severability—1971 ex.s. c 195: See note following RCW 44.40.010.
47.01.250
47.01.250 Consultation with designated state officials. The chief of the Washington state patrol, the director
of the traffic safety commission, the executive director of the
county road administration board, and the director of licensing are designated as official consultants to the transportation
commission so that the goals and activities of their respective
agencies which relate to transportation are fully coordinated
with other related responsibilities of the department of transportation. In this capacity, the chief of the Washington state
patrol, the director of the traffic safety commission, the executive director of the county road administration board, and
the director of licensing shall consult with the transportation
commission and the secretary of transportation on the implications and impacts on the transportation related functions
and duties of their respective agencies of any proposed comprehensive transportation plan, program, or policy.
In order to develop fully integrated, balanced, and coordinated transportation plans, programs, and budgets the chief
of the Washington state patrol, the director of the traffic
safety commission, the executive director of the county road
administration board, and the director of licensing shall consult with the secretary of transportation on the matter of relative priorities during the development of their respective
agencies' plans, programs, and budgets as they pertain to
transportation activities. [1998 c 245 § 92; 1990 c 266 § 5;
1979 c 158 § 204; 1977 ex.s. c 151 § 26.]
Identification of environmental costs of transportation projects—
Pilot project—1993 c 59: "Recognizing the importance of maintaining the
quality of life in Washington state, the citizens of this state demand protection and preservation of our scarce natural resources. Citizens also demand
an efficient and effective transportation system. The departments of transportation, ecology, fisheries, and wildlife and the Puget Sound water quality
authority have worked jointly to develop cooperative approaches for mitigating environmental impacts resulting from transportation projects. Nevertheless, many transportation projects are costing more than was budgeted due to
unanticipated and extensive environmental considerations. It is the intent of
the legislature to find a process for accessing, budgeting, and accounting for
environmental costs related to significant transportation projects in order to
determine whether the environmental costs exceed the transportation benefits of a project.
Therefore, the department of transportation shall undertake a pilot program in at least one transportation district that will serve as a case study for
the entire department. The department shall identify and cost out the discrete
environmental elements of a representative sampling of transportation
projects. The environmental elements should include, but not necessarily be
limited to, wetlands, storm water, hazardous waste, noise, fish, and wildlife.
The department shall also consider an assessment of the cost impacts resulting from delays associated with permitting requirements.
It is the intent of the legislature that the environmental cost estimates be
developed during a detailed scoping process that will include preliminary
engineering and design. After the detailed scoping process and design report
is complete, the department shall submit project-specific recommendations
and cost estimates to the transportation commission before approval is
granted for the construction phase of the projects.
Based upon the findings of the pilot program the transportation commission shall recommend policies to the legislative transportation committee
regarding: (1) The current practice of appropriating design and construction
dollars simultaneously; (2) identification of reasonable thresholds for environmental costs; (3) budget and accounting modifications that may be warranted in order to accurately capture environmental costs associated with
transportation projects; and (4) modification to the priority array statutes,
chapter 47.05 RCW." [1993 c 59 § 1.]
47.01.260
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
Severability—1984 c 7: See note following RCW 47.01.141.
[Title 47 RCW—page 6]
47.01.260 Authority of department. (1) The department of transportation shall exercise all the powers and perform all the duties necessary, convenient, or incidental to the
(2004 Ed.)
Department of Transportation
planning, locating, designing, constructing, improving,
repairing, operating, and maintaining state highways, including bridges and other structures, culverts, and drainage facilities and channel changes necessary for the protection of state
highways, and shall examine and allow or disallow bills for
any work or services performed or materials, equipment, or
supplies furnished.
(2) Subject to the limitations of RCW 4.24.115, the
department, in the exercise of any of its powers, may include
in any authorized contract a provision for indemnifying the
other contracting party against specific loss or damages arising out of the performance of the contract.
(3) The department is authorized to acquire property as
provided by law and to construct and maintain thereon any
buildings or structures necessary or convenient for the planning, design, construction, operation, maintenance, and
administration of the state highway system and to acquire
property and to construct and maintain any buildings, structures, appurtenances, and facilities necessary or convenient to
the health and safety and for the accommodation of persons
traveling upon state highways.
(4) The department is authorized to engage in planning
surveys and may collect, compile, and analyze statistics and
other data relative to existing and future highways and highway needs throughout the state, and shall conduct research,
investigations, and testing as it deems necessary to improve
the methods of construction and maintenance of highways
and bridges. [1983 c 29 § 1; 1979 ex.s. c 58 § 1.]
47.01.300
transportation commission disapproves any proposed
improvements, it shall specify its reasons for disapproval.
(3) Upon notification from the board of an application's
approval pursuant to RCW 43.160.074, the transportation
commission shall direct the department of transportation to
carry out the improvements in coordination with the applicant.
(4) The transportation commission shall notify the legislative transportation committee of all state highway improvements to be carried out pursuant to RCW 43.160.074 and this
section. [1999 c 94 § 10; 1985 c 433 § 6.]
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
Nonseverability—1985 c 433: See note following RCW 43.160.074.
47.01.290
47.01.290 Environmental review of transportation
projects. The legislature recognizes that environmental
review of transportation projects is a continuous process that
should begin at the earliest stages of planning and continue
through final project construction. Early and extensive
involvement of the relevant environmental regulatory authorities is critical in order to avoid significant changes in substantially completed project design and engineering. It is the
expectation of the legislature that if a comprehensive environmental approach is integrated throughout various transportation processes, onerous, duplicative, and time-consuming permit processes will be minimized. [1994 c 258 § 3;
1993 c 55 § 1.]
Captions not law—1994 c 258: See note following RCW 36.70A.420.
47.01.270
47.01.270 Radioactive or hazardous cargo, notice of
prohibition. The department of transportation shall adopt
regulations to establish procedures for giving notice to transporters of placarded radioactive or hazardous cargo of times
when transportation of such cargo is prohibited. [1983 c 205
§ 2.]
Transportation of radioactive or hazardous cargo, prohibited, when: RCW
47.48.050.
47.01.280
47.01.280 Application for improvements to existing
highways. (1) Upon receiving an application for improvements to an existing state highway or highways pursuant to
RCW 43.160.074 from the community economic revitalization board, the transportation commission shall, in a timely
manner, determine whether or not the proposed state highway
improvements:
(a) Meet the safety and design criteria of the department
of transportation;
(b) Will impair the operational integrity of the existing
highway system;
(c) Will affect any other improvements planned by the
department; and
(d) Will be consistent with its policies developed pursuant to RCW 47.01.071.
(2) Upon completion of its determination of the factors
contained in subsection (1) of this section and any other factors it deems pertinent, the transportation commission shall
forward its approval, as submitted or amended or disapproval
of the proposed improvements to the board, along with any
recommendation it may wish to make concerning the desirability and feasibility of the proposed development. If the
(2004 Ed.)
Statewide transportation planning: Chapter 47.06 RCW.
47.01.300
47.01.300 Environmental review of transportation
projects—Cooperation with other environmental regulatory authorities. The department shall, in cooperation with
environmental regulatory authorities:
(1) Identify and document environmental resources in
the development of the statewide multimodal plan under
RCW 47.06.040;
(2) Allow for public comment regarding changes to the
criteria used for prioritizing projects under chapter 47.05
RCW before final adoption of the changes by the commission;
(3) Use an environmental review as part of the project
prospectus identifying potential environmental impacts, mitigation, and costs during the early project identification and
selection phase, submit the prospectus to the relevant environmental regulatory authorities, and maintain a record of
comments and proposed revisions received from the authorities;
(4) Actively work with the relevant environmental regulatory authorities during the design alternative analysis process and seek written concurrence from the authorities that
they agree with the preferred design alternative selected;
(5) Develop a uniform methodology, in consultation
with relevant environmental regulatory authorities, for submitting plans and specifications detailing project elements
that impact environmental resources, and proposed mitigation measures, to the relevant environmental regulatory
authorities during the preliminary specifications and engineering phase of project development;
[Title 47 RCW—page 7]
47.01.310
Title 47 RCW: Public Highways and Transportation
(6) Screen construction projects to determine which
projects will require complex or multiple permits. The permitting authorities shall develop methods for initiating
review of the permit applications for the projects before the
final design of the projects;
(7) Conduct special prebid meetings for those projects
that are environmentally complex; and
(8) Review environmental considerations related to particular projects during the preconstruction meeting held with
the contractor who is awarded the bid. [1994 c 258 § 4.]
Captions not law—1994 c 258: See note following RCW 36.70A.420.
47.01.310
47.01.310 Washington fruit express account. The
Washington fruit express account is created in the state treasury. All receipts from the operations of the Washington fruit
express program must be deposited into the account. Moneys
in the account may be spent only after appropriation. Expenditures from the account may be used only for the operations
of the Washington fruit express program and for east-west
passenger rail. [2001 2nd sp.s. c 14 § 606.]
Severability—Effective date—2001 2nd sp.s. c 14: See notes following RCW 47.04.210.
47.01.321
47.01.321 Skills bank—Report. The department of
transportation shall work with local transportation jurisdictions and representatives of transportation labor groups to
establish a human resources skills bank of transportation professionals. The skills bank must be designed to allow all
transportation authorities to draw from it when needed. The
department shall issue a report of findings and recommendations to the transportation committees of the legislature by
December 1, 2003. The report must include, but not be limited to, identification of any statutory or administrative rule
changes necessary to create the skills bank and allow it to
function in the manner described. [2003 c 363 § 203.]
Findings—Intent—2003 c 363 §§ 201-206: See note following RCW
49.04.041.
Part headings not law—Severability—2003 c 363: See notes following RCW 47.28.241.
Chapter 47.02
Chapter 47.02 RCW
DEPARTMENT BUILDINGS
Sections
47.02.010
47.02.020
47.02.030
47.02.040
47.02.050
47.02.060
47.02.070
47.02.080
47.02.090
47.02.100
47.02.110
47.02.120
47.02.130
47.02.140
47.02.150
47.02.160
Buildings on east capitol site authorized—Financing.
Issuance and sale of limited obligation bonds.
Bonds—Term—Terms and conditions.
Bonds—Signatures—Registration—Where payable—Negotiable instruments.
Bonds—Denominations—Manner and terms of sale—Legal
investment for state funds.
Bonds—Bond proceeds—Deposit and use.
Bonds—Statement describing nature of obligation—Pledge of
excise taxes.
Bonds—Designation of funds to repay bonds and interest.
Bonds—Repayment procedure—Highway bond retirement
fund.
Bonds—Sums in excess of retirement requirements—Use.
Bonds—Appropriation from motor vehicle fund.
District 1 headquarters bonds—Issuance and sale.
District 1 headquarters bonds—Uses of proceeds.
District 1 headquarters bonds—Duties of state finance committee.
District 1 headquarters bonds—Proceeds, deposit and use.
District 1 headquarters bonds—Statement of general obligation—Pledge of excise taxes.
[Title 47 RCW—page 8]
47.02.170
47.02.190
District 1 headquarters bonds—Repayment procedure—Designated funds.
District 1 headquarters bonds—Equal charges against certain
revenues.
47.02.010
47.02.010 Buildings on east capitol site authorized—
Financing. The department is authorized in accordance with
the provisions of this chapter and RCW 79.24.500 through
79.24.600 to provide for the acquisition of land and the construction of buildings, laboratories, and facilities on the east
capitol site for the use of the commission and the department
and to finance payment thereof by bonds payable out of special funds from the proceeds of state excise taxes on motor
vehicle fuels, or by gifts, bequests, or grants or by such additional funds as the legislature may provide. [1984 c 7 § 83;
1977 ex.s. c 235 § 14; 1965 ex.s. c 167 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.02.020
47.02.020 Issuance and sale of limited obligation
bonds. In order to finance the immediate acquisition and
construction of the buildings and facilities referred to in
RCW 47.02.010 there shall be issued and sold limited obligation bonds of the state of Washington in the sum of four million dollars, or such amount thereof and at such times as
determined to be necessary by the state highway commission.
The issuance, sale and retirement of said bonds shall be under
the supervision and control of the state finance committee
which, upon request being made by the Washington state
highway commission, shall provide for the issuance, sale and
retirement of coupon or registered bonds to be dated, issued
and sold from time to time in such amounts as may be necessary for the orderly progress of said project. [1965 ex.s. c 167
§ 2.]
Reviser's note: Powers, duties, and functions of highway commission
transferred to department of transportation; see RCW 47.01.031. Term
"Washington state highway commission" means department of transportation; see RCW 47.04.015.
47.02.030
47.02.030 Bonds—Term—Terms and conditions.
Each of such bonds shall be made payable at any time not
exceeding thirty years from the date of its issuance with such
reserved rights of prior redemption, bearing such interest, and
such terms and conditions as the state finance committee may
prescribe, to be specified therein. [1965 ex.s. c 167 § 3.]
47.02.040
47.02.040 Bonds—Signatures—Registration—
Where payable—Negotiable instruments. The bonds shall
be signed by the governor and the state treasurer under the
seal of the state, one of which signatures shall be made manually and the other signature may be in printed facsimile, and
any coupons attached to such bond shall be signed by the
same officers whose signatures thereon may be in printed facsimile. Any bonds may be registered in the name of the
holder on presentation to the state treasurer or at the fiscal
agency of the state of Washington in New York City, as to
principal alone, or as to both principal and interest under such
regulations as the state treasurer may prescribe. Such bonds
shall be payable at such places as the state finance committee
may provide. All bonds issued hereunder shall be fully negotiable instruments. [1965 ex.s. c 167 § 4.]
(2004 Ed.)
Department Buildings
47.02.050
47.02.050 Bonds—Denominations—Manner and
terms of sale—Legal investment for state funds. The
bonds issued hereunder shall be in denominations to be prescribed by the state finance committee and may be sold in
such manner and in such amounts and at such times and on
such terms and conditions as the committee may prescribe. If
bonds are sold to any purchaser other than the state of Washington, they shall be sold at public sale, and it shall be the
duty of the state finance committee to cause such sale to be
advertised in such manner as it shall deem sufficient. Bonds
issued under the provisions of this chapter shall be legal
investment for any of the funds of the state, except the permanent school fund. [1965 ex.s. c 167 § 5.]
47.02.060
47.02.060 Bonds—Bond proceeds—Deposit and use.
The money arising from the sale of said bonds shall be deposited in the state treasury to the credit of the motor vehicle
fund and such money shall be available only for the acquisition of the land and construction of the buildings and facilities referred to in RCW 47.02.010, and for payment of the
expenses incurred in the drafting, printing, issuance and sale
of any such bonds. [1965 ex.s. c 167 § 6.]
47.02.070
47.02.070 Bonds—Statement describing nature of
obligation—Pledge of excise taxes. Bonds issued under the
provisions of this chapter shall distinctly state that they are
not a general obligation of the state but are payable in the
manner provided in this chapter from the proceeds of state
excise taxes on motor vehicle fuels imposed by chapter 82.36
and *chapter 82.40 RCW. The proceeds of such excise taxes
are hereby pledged to the payment of any bonds and the interest thereon issued under the provisions of this chapter and the
legislature hereby agrees to continue to impose the same
excise taxes on motor vehicle fuels in amounts sufficient to
pay, when due, the principal and interest on all bonds issued
under the provisions of this chapter. [1965 ex.s. c 167 § 7.]
*Reviser's note: Chapter 82.40 RCW was repealed by 1971 ex.s. c 175
§ 33; for later enactment, see chapter 82.38 RCW.
47.02.080
47.02.080 Bonds—Designation of funds to repay
bonds and interest. Any funds required to repay such
bonds, or the interest thereon when due, shall be taken from
that portion of the motor vehicle fund which results from the
imposition of excise taxes on motor vehicle fuels and which
is, or may be appropriated to the department for state highway purposes, and shall never constitute a charge against any
allocations of such funds to counties, cities, and towns unless
and until the amount of the motor vehicle fund arising from
the excise taxes on motor vehicle fuels and available for state
highway purposes proves insufficient to meet the requirements for bond retirement or interest on any such bonds.
[1984 c 7 § 84; 1965 ex.s. c 167 § 8.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.02.090
47.02.090 Bonds—Repayment procedure—Highway
bond retirement fund. At least one year prior to the date
any interest is due and payable on such bonds or before the
maturity date of any bonds, the state finance committee shall
estimate the percentage of the receipts in money of the motor
vehicle fund, resulting from collection of excise taxes on
(2004 Ed.)
47.02.130
motor vehicle fuels, for each month of the year which will be
required to meet interest or bond payments under the provisions of this chapter when due, and shall notify the state treasurer of such estimated requirement. The state treasurer shall
thereafter from time to time each month as such funds are
paid into the motor vehicle fund, transfer such percentage of
the monthly receipts from excise taxes on motor vehicle fuels
of the motor vehicle fund to the highway bond retirement
fund, which fund shall be available solely for payment of
such interest or bonds when due. If in any month it shall
appear that the estimated percentage of money so made is
insufficient to meet the requirements for interest or bond
retirement, the treasurer shall notify the state finance committee forthwith and such committee shall adjust its estimates so
that all requirements for interest and principal of all bonds
issued shall be fully met at all times. [1965 ex.s. c 167 § 9.]
47.02.100
47.02.100 Bonds—Sums in excess of retirement
requirements—Use. Whenever the percentage of the motor
vehicle fund arising from excise taxes on motor fuels payable
into the highway bond retirement fund shall prove more than
is required for the payment of interest on bonds when due or
current retirement of bonds, or in the event there is appropriated from time to time additional amounts to be placed in the
said bond retirement fund, any excess may, in the discretion
of the state finance committee, be available for the prior
redemption of any bonds or remain available in the fund to
reduce the requirements upon the fuel excise tax portion of
the motor vehicle fund at the next interest or bond payment
period. [1965 ex.s. c 167 § 10.]
47.02.110
47.02.110 Bonds—Appropriation from motor vehicle fund. There is hereby appropriated from the motor vehicle fund to the state highway commission for the biennium
ending June 30, 1967, the sum of four million dollars, or so
much thereof as may be necessary to carry out the provisions
of this chapter, but no money shall be available under this
appropriation from said fund unless a like amount of bonds
provided for herein are sold and the money derived therefrom
deposited to the credit of such fund. [1965 ex.s. c 167 § 11.]
47.02.120
47.02.120 District 1 headquarters bonds—Issuance
and sale. For the purpose of providing funds for the acquisition of headquarters facilities for district 1 of the department
of transportation and costs incidental thereto, together with
all improvements and equipment required to make the facilities suitable for the department's use, there shall be issued and
sold upon the request of the Washington transportation commission a total of fifteen million dollars of general obligation
bonds of the state of Washington. [1990 c 293 § 1.]
Severability—1990 c 293: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1990 c 293 § 10.]
47.02.130
47.02.130 District 1 headquarters bonds—Uses of
proceeds. Authorized uses of proceeds from the sale of
bonds authorized in RCW 47.02.120 through 47.02.190
include but are not limited to repayment to the motor vehicle
fund for the initial financing of the headquarters facilities.
[1999 c 94 § 11; 1990 c 293 § 2.]
[Title 47 RCW—page 9]
47.02.140
Title 47 RCW: Public Highways and Transportation
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
Severability—1990 c 293: See note following RCW 47.02.120.
47.02.140 District 1 headquarters bonds—Duties of
state finance committee. Upon the request of the transportation commission, the state finance committee shall supervise and provide for the issuance, sale, and retirement of the
bonds authorized by RCW 47.02.120 through 47.02.190 in
accordance with chapter 39.42 RCW. Bonds authorized by
RCW 47.02.120 through 47.02.190 shall be sold in such
manner, at such time or times, in such amounts, and at such
price as the state finance committee shall determine. Except
for the purpose of repaying the loan from the motor vehicle
fund, no such bonds may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the
bonds.
The state finance committee shall consider the issuance
of short-term obligations in lieu of long-term obligations for
the purposes of more favorable interest rates, lower total
interest costs, and increased marketability and for the purpose
of retiring the bonds during the life of the project for which
they were issued. [1990 c 293 § 3.]
47.02.140
Severability—1990 c 293: See note following RCW 47.02.120.
47.02.150 District 1 headquarters bonds—Proceeds,
deposit and use. The proceeds from the sale of bonds authorized by RCW 47.02.120 through 47.02.190 shall be available only for the purposes enumerated in RCW 47.02.120
and 47.02.130; for the payment of bond anticipation notes, if
any; and for the payment of bond issuance costs, including
the costs of underwriting. Proceeds shall be deposited in the
motor vehicle fund. [1999 c 94 § 12; 1990 c 293 § 4.]
interest on the bonds issued for the purposes of RCW
47.02.120 through 47.02.190 shall be payable from the highway bond retirement fund. The state finance committee may
provide that a special account be created in the fund to facilitate payment of the principal and interest. The state finance
committee shall, on or before June 30th of each year, certify
to the state treasurer the amount required for principal and
interest on the bonds in accordance with the bond proceedings. The state treasurer shall withdraw revenues from the
motor vehicle fund and deposit in the highway bond retirement fund, or a special account in the fund, such amounts,
and at such times, as are required by the bond proceedings.
Any funds required for bond retirement or interest on the
bonds authorized by RCW 47.02.120 through 47.02.190 shall
be taken from that portion of the motor vehicle fund that
results from the imposition of excise taxes on motor vehicle
and special fuels and that is distributed to the state under
RCW 46.68.130. Funds required shall never constitute a
charge against any other allocations of motor vehicle fuel and
special fuel tax revenues to the state, counties, cities, and
towns unless the amount arising from excise taxes on motor
vehicle and special fuels distributed to the state under RCW
46.68.130 proves insufficient to meet the requirements for
bond retirement or interest on any such bonds. [1990 c 293 §
6.]
47.02.150
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
Severability—1990 c 293: See note following RCW 47.02.120.
47.02.160 District 1 headquarters bonds—Statement
of general obligation—Pledge of excise taxes. Bonds
issued under the authority of RCW 47.02.120 through
47.02.190 shall distinctly state that they are a general obligation of the state of Washington, shall pledge the full faith and
credit of the state to the payment of the principal thereof and
the interest thereon, and shall contain an unconditional promise to pay such principal and interest as the same shall
become due. The principal and interest on the bonds shall be
first payable in the manner provided in RCW 47.02.120
through 47.02.190 from the proceeds of the state excise taxes
on motor vehicle and special fuels imposed by chapters 82.36
and 82.38 RCW. Proceeds of such excise taxes are hereby
pledged to the payment of any bonds and the interest thereon
issued under the authority of RCW 47.02.120 through
47.02.190, and the legislature agrees to continue to impose
these excise taxes on motor vehicle and special fuels in
amounts sufficient to pay, when due, the principal and interest on all bonds issued under the authority of RCW 47.02.120
through 47.02.190. [1995 c 274 § 5; 1990 c 293 § 5.]
47.02.160
Severability—1990 c 293: See note following RCW 47.02.120.
47.02.170 District 1 headquarters bonds—Repayment procedure—Designated funds. Both principal and
Severability—1990 c 293: See note following RCW 47.02.120.
47.02.190
47.02.190 District 1 headquarters bonds—Equal
charges against certain revenues. Bonds issued under the
authority of RCW 47.02.120 through *47.02.180 and this
section and any other general obligation bonds of the state of
Washington that have been or that may be authorized and that
pledge motor vehicle and special fuels excise taxes for the
payment of principal and interest thereon shall be an equal
charge against the revenues from such motor vehicle and special fuels excise taxes. [1990 c 293 § 8.]
*Reviser's note: RCW 47.02.180 was repealed by 1999 c 94 § 33,
effective July 1, 1999.
Severability—1990 c 293: See note following RCW 47.02.120.
Chapter 47.04
Sections
47.04.010
47.04.015
47.04.020
47.04.040
47.04.045
47.04.046
47.04.047
47.04.050
47.04.060
47.04.070
47.04.080
47.04.081
47.04.082
47.04.083
47.04.090
47.04.100
47.02.170
[Title 47 RCW—page 10]
Chapter 47.04 RCW
GENERAL PROVISIONS
47.04.140
Definitions.
Change of meaning, certain terms.
Classification of highways.
Title to rights of way vested in state.
Wireless service facilities—Right of way leases—Rules.
Wireless site leases—Pending applications.
Personal wireless service facilities.
Acceptance of federal acts.
Administration of federal grants.
Conformity with federal requirements.
Joint action with other governments and agencies.
Urban public transportation systems—Participation in planning, development, and establishment.
Urban public transportation systems—Defined.
Urban public transportation systems—Declaration of public
policy—Use of motor vehicle, city street, or county road
funds.
Penalty.
Temporary route pending construction of new highway—
Streets, roads not to be maintained as.
Counties obtaining federal aid for construction, reconstruction, etc., of ferry boats or approaches.
(2004 Ed.)
General Provisions
47.04.150
47.04.160
47.04.170
47.04.180
47.04.190
47.04.200
47.04.210
47.04.220
47.04.230
47.04.235
47.04.240
47.04.250
Outstanding bonds—Savings.
Lewis and Clark bridge.
Federal agreements for public transportation, rail transportation.
Twenty-four hour headlight policy.
Bicycle transportation management program.
Bicycle program manager.
Reimbursable transportation expenditures—Processing and
accounting.
Miscellaneous transportation programs account.
Dredge spoils—Cowlitz County.
Dredge spoils—Castle Rock.
Public transportation information—Confidentiality.
Assaults by motorists on department employees.
Mobile home or park model trailer movement permits and decals: RCW
46.44.170, 46.44.175.
47.04.010 Definitions. The following words and
phrases, wherever used in this title, shall have the meaning as
in this section ascribed to them, unless where used the context thereof shall clearly indicate to the contrary or unless
otherwise defined in the chapter of which they are a part:
(1) "Alley." A highway within the ordinary meaning of
alley not designated for general travel and primarily used as a
means of access to the rear of residences and business establishments;
(2) "Arterial highway." Every highway, as herein
defined, or portion thereof designated as such by proper
authority;
(3) "Business district." The territory contiguous to and
including a highway, as herein defined, when within any six
hundred feet along such highway there are buildings in use
for business or industrial purposes, including but not limited
to hotels, banks, or office buildings, railroad stations, and
public buildings which occupy at least three hundred feet of
frontage on one side or three hundred feet collectively on
both sides of the highway;
(4) "Center line." The line, marked or unmarked parallel
to and equidistant from the sides of a two-way traffic roadway of a highway except where otherwise indicated by
painted lines or markers;
(5) "Center of intersection." The point of intersection of
the center lines of the roadways of intersecting highways;
(6) "City street." Every highway as herein defined, or
part thereof located within the limits of incorporated cities
and towns, except alleys;
(7) "Combination of vehicles." Every combination of
motor vehicle and motor vehicle, motor vehicle and trailer, or
motor vehicle and semitrailer;
(8) "Commercial vehicle." Any vehicle the principal use
of which is the transportation of commodities, merchandise,
produce, freight, animals, or passengers for hire;
(9) "County road." Every highway as herein defined, or
part thereof, outside the limits of incorporated cities and
towns and which has not been designated as a state highway,
or branch thereof;
(10) "Crosswalk." The portion of the roadway between
the intersection area and a prolongation or connection of the
farthest sidewalk line or in the event there are no sidewalks
then between the intersection area and a line ten feet therefrom, except as modified by a marked crosswalk;
(11) "Highway." Every way, lane, road, street, boulevard, and every way or place in the state of Washington open
as a matter of right to public vehicular travel both inside and
outside the limits of incorporated cities and towns;
47.04.010
(2004 Ed.)
47.04.010
(12) "Intersection area." (a) The area embraced within
the prolongation or connection of the lateral curb lines, or, if
none, then the lateral boundary lines of the roadways of two
or more highways which join one another at, or approximately at, right angles, or the area within which vehicles traveling upon different highways joining at any other angle may
come in conflict;
(b) Where a highway includes two roadways thirty feet
or more apart, then every crossing of each roadway of such
divided highway by an intersecting highway shall be
regarded as a separate intersection. In the event such intersecting highway also includes two roadways thirty feet or
more apart, then every crossing of two roadways of such
highways shall be regarded as a separate intersection;
(c) The junction of an alley with a street or highway shall
not constitute an intersection;
(13) "Intersection control area." The intersection area as
herein defined, together with such modification of the adjacent roadway area as results from the arc or curb corners and
together with any marked or unmarked crosswalks adjacent
to the intersection;
(14) "Laned highway." A highway the roadway of
which is divided into clearly marked lanes for vehicular traffic;
(15) "Local authorities." Every county, municipal, or
other local public board or body having authority to adopt
local police regulations under the Constitution and laws of
this state;
(16) "Marked crosswalk." Any portion of a roadway distinctly indicated for pedestrian crossing by lines or other
markings on the surface thereof;
(17) "Metal tire." Every tire, the bearing surface of
which in contact with the highway is wholly or partly of
metal or other hard, nonresilient material;
(18) "Motor truck." Any motor vehicle, as herein
defined, designed or used for the transportation of commodities, merchandise, produce, freight, or animals;
(19) "Motor vehicle." Every vehicle, as herein defined,
which is in itself a self-propelled unit;
(20) "Multiple lane highway." Any highway the roadway of which is of sufficient width to reasonably accommodate two or more separate lanes of vehicular traffic in the
same direction, each lane of which shall be not less than the
maximum legal vehicle width, and whether or not such lanes
are marked;
(21) "Operator." Every person who drives or is in actual
physical control of a vehicle as herein defined;
(22) "Peace officer." Any officer authorized by law to
execute criminal process or to make arrests for the violation
of the statutes generally or of any particular statute or statutes
relative to the highways of this state;
(23) "Pedestrian." Any person afoot or who is using a
wheelchair, power wheelchair as defined in RCW 46.04.415,
or a means of conveyance propelled by human power other
than a bicycle;
(24) "Person." Every natural person, firm, copartnership, corporation, association, or organization;
(25) "Personal wireless service." Any federally licensed
personal wireless service;
(26) "Personal wireless service facilities." Unstaffed
facilities that are used for the transmission or reception, or
[Title 47 RCW—page 11]
47.04.015
Title 47 RCW: Public Highways and Transportation
both, of personal wireless services including, but not necessarily limited to, antenna arrays, transmission cables, equipment shelters, and support structures;
(27) "Pneumatic tires." Every tire of rubber or other
resilient material designed to be inflated with compressed air
to support the load thereon;
(28) "Private road or driveway." Every way or place in
private ownership and used for travel of vehicles by the
owner or those having express or implied permission from
the owner, but not by other persons;
(29) "Railroad." A carrier of persons or property upon
vehicles, other than street cars, operated upon stationary rails,
the route of which is principally outside incorporated cities
and towns;
(30) "Railroad sign or signal." Any sign, signal, or
device erected by authority of a public body or official or by
a railroad and intended to give notice of the presence of railroad tracks or the approach of a railroad train;
(31) "Residence district." The territory contiguous to
and including the highway, as herein defined, not comprising
a business district, as herein defined, when the property on
such highway for a continuous distance of three hundred feet
or more on either side thereof is in the main improved with
residences or residences and buildings in use for business;
(32) "Roadway." The paved, improved, or proper driving portion of a highway designed, or ordinarily used for
vehicular travel;
(33) "Safety zone." The area or space officially set apart
within a roadway for the exclusive use of pedestrians and
which is protected or is marked or indicated by painted
marks, signs, buttons, standards, or otherwise so as to be
plainly discernible;
(34) "Sidewalk." That property between the curb lines or
the lateral lines of a roadway, as herein defined, and the adjacent property, set aside and intended for the use of pedestrians or such portion of private property parallel and in proximity to a highway and dedicated to use by pedestrians;
(35) "Solid tire." Every tire of rubber or other resilient
material which does not depend upon inflation with compressed air for the support of the load thereon;
(36) "State highway." Every highway as herein defined,
or part thereof, which has been designated as a state highway,
or branch thereof, by legislative enactment;
(37) "Street car." A vehicle other than a train, as herein
defined, for the transporting of persons or property and operated upon stationary rails principally within incorporated cities and towns;
(38) "Traffic." Pedestrians, ridden or herded animals,
vehicles, street cars, and other conveyances either singly or
together while using any highways for purposes of travel;
(39) "Traffic control signal." Any traffic device, as
herein defined, whether manually, electrically, or mechanically operated, by which traffic alternately is directed to stop
or proceed or otherwise controlled;
(40) "Traffic devices." All signs, signals, markings, and
devices not inconsistent with this title placed or erected by
authority of a public body or official having jurisdiction, for
the purpose of regulating, warning, or guiding traffic;
(41) "Train." A vehicle propelled by steam, electricity,
or other motive power with or without cars coupled thereto,
operated upon stationary rails, except street cars;
[Title 47 RCW—page 12]
(42) "Vehicle." Every device capable of being moved
upon a highway and in, upon, or by which any person or
property is or may be transported or drawn upon a highway,
excepting power wheelchairs, as defined in RCW 46.04.415,
or devices moved by human or animal power or used exclusively upon stationary rails or tracks.
Words and phrases used herein in the past, present, or
future tense shall include the past, present, and future tenses;
words and phrases used herein in the masculine, feminine, or
neuter gender shall include the masculine, feminine, and neuter genders; and words and phrases used herein in the singular
or plural shall include the singular and plural; unless the context thereof shall indicate to the contrary. [2003 c 244 § 2;
2003 c 141 § 8; 1975 c 62 § 50; 1967 ex.s. c 145 § 42; 1961 c
13 § 47.04.010. Prior: 1937 c 53 § 1; RRS § 6400-1.]
Reviser's note: This section was amended by 2003 c 141 § 8 and by
2003 c 244 § 2, each without reference to the other. Both amendments are
incorporated in the publication of this section under RCW 1.12.025(2). For
rule of construction, see RCW 1.12.025(1).
Severability—1975 c 62: See note following RCW 36.75.010.
Aeronautics, definitions relating to: RCW 47.68.020.
Canal, defined: RCW 47.72.060.
Department, commission, secretary—Defined: RCW 47.01.021.
Ferry workers, marine employees, definitions relating to: RCW 47.64.011.
Junkyards, definitions relating to: RCW 47.41.020.
Limited access facilities, definitions relating to: RCW 46.52.010.
Signs and scenic vistas, definitions relating to: RCW 47.42.020.
Toll bridges, roads, definitions relating to: RCW 47.56.010.
Urban arterials, definitions relating to: RCW 47.26.040, 47.26.090,
47.26.100, 47.26.110.
Urban public transportation systems—Defined: RCW 47.04.082.
47.04.015
47.04.015 Change of meaning, certain terms. Unless
the language specifically indicates otherwise, or unless the
context plainly requires a different interpretation:
Wherever in Title 47 RCW or in any provision in the
Revised Code of Washington the term "Washington state
highway commission", "the state highway commission", "the
highway commission", "the commission" (when referring to
the Washington state highway commission), "the department
of highways", "Washington toll bridge authority", or "the
authority" (when referring to the Washington toll bridge
authority) is used, it shall mean the department of transportation created in RCW 47.01.031.
Wherever in Title 47 RCW or in any provision in the
Revised Code of Washington the term "director of highways"
is used, it shall mean the secretary of transportation, whose
office is created in RCW 47.01.041. [1977 ex.s. c 151 § 23.]
47.04.020
47.04.020 Classification of highways. All public highways in the state of Washington, or portions thereof, outside
incorporated cities and towns shall be divided and classified
as state highways and county roads. All state highways and
branches thereof shall be established by the legislature of the
state of Washington by appropriate general location and termini. Any prior distinctions between highways as primary or
secondary are hereby abolished. All powers granted to, or
duties imposed upon, the department with regard to either
primary or secondary state highways shall be construed to
relate to all state highways. Whenever these terms are used,
(2004 Ed.)
General Provisions
either jointly or independently, each shall be construed to
include all state highways. All public highways in the state of
Washington, or portions thereof, outside incorporated cities
and towns, not established as state highways, are hereby
declared to be county roads. [1984 c 7 § 85; 1967 ex.s. c 145
§ 41; 1963 c 24 § 3; 1961 c 13 § 47.04.020. Prior: 1937 c 207
§ 1; RRS § 6402-1; 1937 c 53 § 5; RRS § 6400-5; 1913 c 65
§ 1; RRS § 6790.]
Severability—1984 c 7: See note following RCW 47.01.141.
Highway designation system—Signs: RCW 47.36.095.
47.04.040
47.04.040 Title to rights of way vested in state. Upon
and after April 1, 1937, all rights of way of any primary state
highways, together with all appurtenances thereto, the right
or interest in or to which was, or is, in any county, road district, township, local improvement district, or other highway
or road district or political subdivision of the state of Washington shall be and the same is hereby transferred to and
vested in the state of Washington for use in conjunction with
such primary state highways under the department of transportation.
All public highways in the state of Washington which
have been designated to be primary state highways or secondary state highways or classified as primary roads and
which have been constructed and improved and maintained
for a period of seven years prior to April 1, 1937, at the
expense of the state shall operate to vest in the state of Washington all right, title, and interest to the right of ways thereof,
including the roadway and ditches and existing drainage
facilities, together with all appurtenances thereto and no
informalities in the records of title to such public highways
shall be construed to invalidate or vacate such public highways or to divest the state of Washington of any right, title
and interest in the right of way thereof. [1979 ex.s. c 30 § 7;
1961 c 13 § 47.04.040. Prior: 1937 c 53 § 29; RRS § 640029.]
47.04.050
to the facility if it is reasonable and available for the particular location.
(3) The cost of the lease must be limited to the fair market value of the portion of the right of way being used by the
service provider and the direct administrative expenses
incurred by the department in processing the lease application.
If the department and the service provider are unable to
agree on the cost of the lease, the service provider may submit the cost of the lease to binding arbitration by serving written notice on the department. Within thirty days of receiving
the notice, each party shall furnish a list of acceptable arbitrators. The parties shall select an arbitrator; failing to agree on
an arbitrator, each party shall select one arbitrator and the two
arbitrators shall select a third arbitrator for an arbitration
panel. The arbitrator or panel shall determine the cost of the
lease based on comparable siting agreements. Costs of the
arbitration, including compensation for the arbitrator's services, must be borne equally by the parties participating in
the arbitration and each party shall bear its own costs and
expenses, including legal fees and witness expenses, in connection with the arbitration proceeding.
(4) The department shall act on an application for a lease
within sixty days of receiving a completed application, unless
a service provider consents to a different time period.
(5) The reasons for a denial of a lease application must
be supported by substantial evidence contained in a written
record.
(6) The department may adopt rules to implement this
section.
(7) All lease money paid to the department under this
section shall be deposited in the motor vehicle fund created in
RCW 46.68.070. [2003 c 244 § 5.]
47.04.046
47.04.046 Wireless site leases—Pending applications.
Applications for wireless site leases pending on July 27,
2003, must be treated as applications under RCW 47.04.045
with the consent of the applicant. [2003 c 244 § 8.]
47.04.045
47.04.045 Wireless service facilities—Right of way
leases—Rules. (1) For the purposes of this section:
(a) "Right of way" means all state-owned land within a
state highway corridor.
(b) "Service provider" means every corporation, company, association, joint stock association, firm, partnership,
or person that owns, operates, or manages any personal wireless service facility. "Service provider" includes a service
provider's contractors, subcontractors, and legal successors.
(2) The department shall establish a process for issuing a
lease for the use of the right of way by a service provider and
shall require that telecommunications equipment be colocated on the same structure whenever practicable. Consistent with federal highway administration approval, the lease
must include the right of direct ingress and egress from the
highway for construction and maintenance of the personal
wireless service facility during nonpeak hours if public safety
is not adversely affected. Direct ingress and egress may be
allowed at any time for the construction of the facility if public safety is not adversely affected and if construction will not
substantially interfere with traffic flow during peak traffic
periods. The lease may specify an indirect ingress and egress
(2004 Ed.)
47.04.047
47.04.047 Personal wireless service facilities. Personal wireless service is a critical part of the state's infrastructure. The rapid deployment of personal wireless service
facilities is critical to ensure public safety, network access,
quality of service, and rural economic development.
It is the declared policy of this state to assure that the use
of rights of way of state highways accommodate the deployment of personal wireless service facilities consistent with
highway safety and the preservation of the public investment
in state highway facilities. [2004 c 131 § 2.]
47.04.050
47.04.050 Acceptance of federal acts. The state of
Washington hereby assents to the purposes, provisions, terms
and conditions of the grant of money provided in an act of
congress entitled: "An act to provide that the United States
shall aid the states in the construction of rural post roads, and
for other purposes," approved July 11, 1916, and all acts,
grants and appropriations amendatory and supplementary
thereto and affecting the state of Washington. [1961 c 13 §
47.04.050. Prior: 1937 c 53 § 43; RRS § 6400-43; 1917 c 76
§ 1; RRS § 6844.]
[Title 47 RCW—page 13]
47.04.060
Title 47 RCW: Public Highways and Transportation
47.04.060
47.04.060 Administration of federal grants. The
department is authorized and directed to act for and on behalf
of the state of Washington, and any political subdivision of
the state, in all things pertaining to the selection, construction, and maintenance of highways and roads under the provisions of the act of congress approved July 11, 1916, and
any and all acts amendatory thereto; and to enter into such
agreement with the secretary of transportation or other duly
authorized agent of the United States as may from time to
time be desirable or necessary to secure the money or aid for
any section of state highway, county road, or city or town
street selected by law for construction or improvement
through an appropriation for the period in which the construction or improvement is to be made. The money shall be
added to and expended in connection with the appropriation
aforesaid; and shall apply thereto, as may be required, cooperative expenditures from the motor vehicle fund, which may
have been appropriated by the state legislature, and from any
highway, road, or street fund of any political subdivision, and
which are available for the construction and maintenance of
any section of state highway, county road, or city or town
street selected as aforesaid for such aid and improvement.
[1984 c 7 § 86; 1961 c 13 § 47.04.060. Prior: 1937 c 53 § 47;
RRS § 6400-47; 1917 c 76 § 5, part; RRS § 6848, part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.04.081
47.04.081 Urban public transportation systems—
Participation in planning, development, and establishment. The department is empowered to join financially or
otherwise with any public agency or any county, city, or town
in the state of Washington or any other state, or with the federal government or any agency thereof, or with any or all
thereof for the planning, development, and establishment of
urban public transportation systems in conjunction with new
or existing highway facilities. [1984 c 7 § 89; 1967 c 108 §
13; 1965 ex.s. c 170 § 63.]
Severability—1984 c 7: See note following RCW 47.01.141.
Urban public transportation system defined: RCW 47.04.082.
47.04.082
47.04.082 Urban public transportation systems—
Defined. As used in this act the term "urban public transportation system" shall mean a system for the public transportation of persons or property by buses, street cars, trains, electric trolley coaches, other public transit vehicles, or any combination thereof operating in or through predominantly urban
areas and owned and operated by the state, any city or county
or any municipal corporation of the state, including all structures, facilities, vehicles and other property rights and interest
forming a part of such a system. [1967 c 108 § 1.]
Reviser's note: The term "this act" refers to 1967 c 108, codified as
RCW 47.04.082, 47.04.083, 47.98.044, and the 1967 amendments to RCW
47.04.081, 47.08.070, 47.12.010, 47.12.250, 47.28.140, 47.44.010,
47.44.040, 47.48.010, 47.52.010, 47.52.090, and 47.56.256.
47.04.070
47.04.070 Conformity with federal requirements. In
all matters relating to the cooperative construction or
improvement of any state highway, county road, or city or
town street for which federal funds or aid is secured under
any act of congress, the department shall act in the manner
provided by state law relating to state highway construction
from the motor vehicle fund, so far as the same may be consistent with the provisions of such act of congress and the
rules and regulations made by the secretary of transportation
or other authorized agent of the United States government
pursuant to such act, to which the procedure shall be adapted
by the department as may be necessary. [1984 c 7 § 87; 1961
c 13 § 47.04.070. Prior: 1937 c 53 § 44; RRS § 6400-44;
1917 c 76 § 5, part; RRS § 6848, part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.04.080
47.04.080 Joint action with other governments and
agencies. The department is empowered to join financially
or otherwise with any other state or any county, city, or town
of any other state, or with any foreign country, or any province or district of any foreign country, or with the federal
government or any agency thereof, or with any or all thereof,
for the erecting, constructing, operating, or maintaining of
any bridge, trestle, or any other structure, for the continuation
or connection of any state highway across any stream, body
of water, gulch, navigable water, swamp, or other topographical formation requiring any such structure and forming a
boundary between the state of Washington and any other
state or foreign country, and for the purchase or condemnation of right of way therefor. [1984 c 7 § 88; 1973 1st ex.s. c
151 § 11; 1961 c 13 § 47.04.080. Prior: 1937 c 53 § 47 1/2;
RRS § 6400-47 1/2.]
Severability—1984 c 7: See note following RCW 47.01.141.
[Title 47 RCW—page 14]
47.04.083
47.04.083 Urban public transportation systems—
Declaration of public policy—Use of motor vehicle, city
street, or county road funds. The separate and uncoordinated development of public highways and urban public
transportation systems is wasteful of this state's natural and
financial resources. It is the public policy of this state to
encourage wherever feasible the joint planning, construction
and maintenance of public highways and urban public transportation systems serving common geographical areas as
joint use facilities. To this end the legislature declares it to be
a highway purpose to use motor vehicle funds, city and town
street funds or county road funds to pay the full proportionate
highway, street or road share of the costs of design, right of
way acquisition, construction and maintenance of any highway, street or road to be used jointly with an urban public
transportation system. [1967 c 108 § 2.]
47.04.090
47.04.090 Penalty. It is a misdemeanor for any person
to violate any of the provisions of this title unless specifically
provided otherwise by this title or other law of this state.
Unless another penalty is provided in this title, every person convicted of a misdemeanor for violation of any provisions of this title shall be punished in accordance with chapter
9A.20 RCW. [1989 c 224 § 2; 1961 c 13 § 47.04.090. Prior:
1937 c 53 § 95; RRS § 6400-95.]
47.04.100
47.04.100 Temporary route pending construction of
new highway—Streets, roads not to be maintained as.
Unless otherwise provided, whenever by statute a new highway or extension is added to the state highway system, no
existing city street or county road may be maintained or
improved by the department as a temporary route of such new
highway or extension pending the construction of the new
(2004 Ed.)
General Provisions
highway or extension on the location adopted by the department. [1984 c 7 § 90; 1973 1st ex.s. c 151 § 12; 1965 ex.s. c
170 § 34.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.04.140
47.04.140 Counties obtaining federal aid for construction, reconstruction, etc., of ferry boats or
approaches. Whenever a county that operates or proposes to
operate ferries obtains federal aid for the construction, reconstruction, or modification of any ferry boat or approaches
thereto under Title 23, United States Code, the following provisions apply to the county's operation of its ferries:
(1) The county shall obtain from the department a franchise authorizing the ferry operations. The county's application for a franchise or amended franchise shall designate all
ferry routes it proposes to operate. The department shall issue
the franchise or amended franchise for the operation of each
route that it finds is not otherwise served by adequate transportation facilities. A county may terminate any ferry route
without approval of the department.
(2) At least ninety days before applying for federal aid
for the construction, reconstruction, or modification of any of
its ferries or approaches thereto, and thereafter whenever new
tolls or charges are proposed for use of its ferries, the county
shall file with the department, the current or proposed schedule of tolls and charges for use of its ferries. Such tolls and
charges shall be deemed approved by the department unless it
finds that the aggregate revenues to be derived from the
county's ferry operations will exceed the amount required to
pay the actual and necessary costs of operation, maintenance,
administration, and repair of the county's ferries and their
appurtenances. [1989 c 62 § 1; 1984 c 7 § 91; 1975-'76 2nd
ex.s. c 65 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.04.150
47.04.150 Outstanding bonds—Savings. While any
bonds, whether definitive, temporary, or interim, or warrants,
certificates, or receipts of any denomination, with or without
coupons attached heretofore issued by the state aeronautics
commission, the toll bridge authority, the highway commission, or any of the other agencies whose functions are transferred to the department of transportation by RCW
47.01.031, remain outstanding, the powers and duties relating
thereto of such agencies or of any official or employee
thereof transferred by *RCW 47.01.111 to the department of
transportation, or any powers and duties of any other state
official or state agency with respect to such bonds, warrants,
certificates, or receipts shall not be diminished or impaired in
any manner that will adversely affect the interests and rights
of the holders of such bonds, warrants, certificates, or
receipts. The holder of any such bond, warrant, certificate, or
receipt may by mandamus or other appropriate proceeding
require the performance by the department of transportation,
or other appropriate state official or agency, of any of the
duties heretofore imposed upon any state department, official, or employee under the terms of any such prior bond,
warrant, certificate, or receipt agreement or sale: PROVIDED, That the enumeration of such rights and remedies
herein shall not be deemed to exclude the exercise or prosecution of any other rights or remedies by the holders of such
(2004 Ed.)
47.04.190
bonds, warrants, certificates, or receipts. [1977 ex.s. c 151 §
19.]
*Reviser's note: RCW 47.01.111 was decodified pursuant to 1985 c 6
§ 26.
47.04.160
47.04.160 Lewis and Clark bridge. In commemoration of the 175th anniversary of captains Meriwether Lewis
and William Clark's epic journey from Wood River, Illinois,
to Cape Disappointment, Washington, and to fully honor the
expedition's passing the present location of the city of Longview, Washington, in November, 1805, and to couple this
commemoration with the dedication of the bridge from Longview, Washington, to Rainier, Oregon, on March 29, 1930,
the official name of this bridge is changed from the Longview-Columbia bridge to the Lewis and Clark bridge. [1980
c 5 § 1.]
47.04.170
47.04.170 Federal agreements for public transportation, rail transportation. The department of transportation
is authorized to enter into and perform agreements with federal agencies as may be necessary to secure federal grants,
loans, or other assistance on its own behalf or on behalf of
other public or private recipients for:
(1) Public transportation purposes, including but not limited to, bus transportation, specialized transportation services
for the elderly and handicapped, and ride sharing activities;
and
(2) Rail transportation. [1985 c 20 § 1.]
47.04.180
47.04.180 Twenty-four hour headlight policy. On the
recommendation of their public works departments or designees, counties or cities can petition the department of transportation to create a "twenty-four hour headlight policy" on
state highways in their respective jurisdictions. The department shall develop criteria for approval or disapproval, such
as traffic volume, accident statistics, and costs of signs. The
department shall notify all counties about this program.
A jurisdiction requesting such a policy shall periodically
report to the department regarding its educational efforts. A
jurisdiction may petition the department to remove such a
policy.
The jurisdiction shall educate its citizens on the "twentyfour hour headlight policy." The department shall place and
maintain appropriate signs along the designated highway.
Participating jurisdictions shall share in the cost of signing in
an amount as determined by the department. [1998 c 245 §
94; 1989 c 195 § 1.]
47.04.190
47.04.190 Bicycle transportation management program. (1) The department of transportation is responsible for
the initiation, coordination, and operation of a bicycle transportation management program.
(2) To assist in the operation of the bicycle transportation
management program, a full-time staff position of state bicycle program manager is established within the department of
transportation. [1991 c 214 § 5.]
Bicycle awareness program: RCW 43.43.390.
Pavement marking standards: RCW 47.36.280.
[Title 47 RCW—page 15]
47.04.200
Title 47 RCW: Public Highways and Transportation
47.04.200
47.04.200 Bicycle program manager. The state bicycle program manager shall:
(1) Design programs that encourage the use of bicycling
for transportation;
(2) Coordinate bicycle safety related programs and bicycle tourism programs in all state agencies;
(3) Assist the department of transportation and the cities
and counties of the state in assigning priorities to, programming, and developing bicycle-related projects;
(4) Serve as a clearinghouse for bicycle program information and resources;
(5) Provide assistance in revising and updating bicycle
material of the superintendent of public instruction and the
state patrol;
(6) Promote the use of bicycle helmets of a type certified
to meet the requirements of standard Z-90.4 of the American
National Standards Institute or such subsequent nationally
recognized standard for bicycle helmet performance; and
(7) Promote bicycle safety equipment. [1991 c 214 § 6.]
47.04.210
47.04.210 Reimbursable transportation expenditures—Processing and accounting. Federal funds that are
administered by the department of transportation and are
passed through to municipal corporations or political subdivisions of the state and moneys that are received as total reimbursement for goods, services, or projects constructed by the
department of transportation are removed from the transportation budget. To process and account for these expenditures
a new treasury trust account is created to be used for all
department of transportation one hundred percent federal and
local reimbursable transportation expenditures. This new
account is nonbudgeted and nonappropriated. At the same
time, federal and private local appropriations and full-time
equivalents in subprograms R2, R3, T6, Y6, and Z2 processed through this new account are removed from the
department of transportation's 1997-99 budget.
The department of transportation may make expenditures from the account before receiving federal and local
reimbursements. However, at the end of each biennium, the
account must maintain a zero or positive cash balance. In the
twenty-fourth month of each biennium the department of
transportation shall calculate and transfer sufficient cash
from either the motor vehicle fund or the multimodal transportation account to cover any negative cash balances. The
amount transferred is calculated based on expenditures from
each fund. In addition, any interest charges accruing to the
new account must be distributed to the motor vehicle fund
and the multimodal transportation account.
The department of transportation shall provide an annual
report to the legislative transportation committee and the
office of financial management on expenditures and full-time
equivalents processed through the new account. The report
must also include recommendations for process changes, if
needed. [2001 2nd sp.s. c 14 § 601; 1997 c 94 § 1.]
Severability—2001 2nd sp.s. c 14: "If any provision of this act or its
application to any person or circumstance is held invalid, the remainder of
the act or the application of the provision to other persons or circumstances
is not affected." [2001 2nd sp.s. c 14 § 612.]
Effective date—2001 2nd sp.s. c 14: "Except for section 608 of this
act, this act is necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its existing public
[Title 47 RCW—page 16]
institutions, and takes effect immediately [June 26, 2001]." [2001 2nd sp.s.
c 14 § 613.]
Effective date—1997 c 94: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997."
[1997 c 94 § 4.]
47.04.220
47.04.220 Miscellaneous transportation programs
account. (1) The miscellaneous transportation programs
account is created in the custody of the state treasurer.
(2) Moneys from the account may be used only for the
costs of:
(a) Miscellaneous transportation services provided by
the department that are reimbursed by other public and private entities;
(b) Local transportation projects for which the department is a conduit for federal reimbursement to a municipal
corporation or political subdivision; or
(c) Other reimbursable activities as recommended by the
legislative transportation committee and approved by the
office of financial management.
(3) Moneys received as reimbursement for expenditures
under subsection (2) of this section must be deposited into the
account.
(4) No appropriation is required for expenditures from
this account. This fund is not subject to allotment procedures
provided under chapter 43.88 RCW.
(5) Only the secretary of transportation or the secretary's
designee may authorize expenditures from the account.
(6) It is the intent of the legislature that this account
maintain a zero or positive cash balance at the end of each
biennium. Toward this purpose the department may make
expenditures from the account before receiving reimbursements under subsection (2) of this section. Before the end of
the biennium, the department shall transfer sufficient cash to
cover any negative cash balances from the motor vehicle fund
and the multimodal transportation account to the miscellaneous transportation programs account for unrecovered reimbursements. The department shall calculate the distribution
of this transfer based on expenditures. In the ensuing biennium the department shall transfer the reimbursements
received in the miscellaneous transportation programs
account back to the motor vehicle fund and the multimodal
transportation account to the extent of the cash transferred at
biennium end. The department shall also distribute any interest charges accruing to the miscellaneous transportation programs account to the motor vehicle fund and the multimodal
transportation account. Adjustments for any indirect cost
recoveries may also be made at this time.
(7) The department shall provide an annual report to the
legislative transportation committee and the office of financial management on the expenditures and full-time equivalents processed through the miscellaneous transportation programs account. The report must also include recommendations for changes to the process, if needed. [2001 2nd sp.s. c
14 § 602; 1997 c 94 § 2.]
Severability—Effective date—2001 2nd sp.s. c 14: See notes following RCW 47.04.210.
Effective date—1997 c 94: See note following RCW 47.04.210.
(2004 Ed.)
General Provisions
47.04.230 Dredge spoils—Cowlitz County. The legislature finds and declares that the December 19, 1991, Washington state conveyance of the Mt. St. Helens Recovery Program, LT-1 and Cook Ferry Road Sites, to Cowlitz County,
should be amended to enable Cowlitz County to use dredge
spoils revenues for recreational purposes throughout the
county.
The legislature further declares that the department of
transportation shall execute sufficient legal release to accomplish the following:
(1) Dredge spoil revenues from either the LT-1 or Cook
Ferry Road Site must be dedicated for recreational facilities
and recreational administration costs throughout the county;
(2) Any mining excavation must meet the requirements
of the Shoreline Management Act of 1971 as identified in
chapter 90.58 RCW;
(3) Both the LT-1 and Cook Ferry Road Site must be preserved as a long-term dredging facility;
(4) All other requirements in the December 19, 1991,
conveyance between the state of Washington and Cowlitz
County will remain in effect; and
(5) The LT-1 and Cook Ferry Road Site remains subject
to any agreements with the United States Army Corps of
Engineers and other agencies of the federal government.
[1999 c 63 § 1.]
47.04.230
47.04.235 Dredge spoils—Castle Rock. The legislature finds and declares that the December 20, 1993, Washington state conveyance of the Mt. St. Helens recovery program,
CR601F site, to the city of Castle Rock, should be amended
to enable the city to use dredge spoil revenues for recreational
purposes adjacent to the Cowlitz river in the city limits of
Castle Rock, and also those other properties owned by the
city of Castle Rock that are adjacent to the Cowlitz river.
The legislature further declares that the department of
transportation shall execute sufficient legal release to accomplish the following:
(1) Dredge spoil revenues from the CR601F site must be
dedicated for recreational facilities and recreational administration cost throughout the defined area listed above;
(2) Any mining excavation must meet the requirements
of the Shoreline Management Act of 1971 as identified in
chapter 90.58 RCW;
(3) All other requirements in the December 20, 1993,
conveyance between the state of Washington and the city of
Castle Rock will remain in effect; and
(4) The CR601F site remains subject to any agreements
with the United States Army Corps of Engineers and other
agencies of the federal government. [2000 c 13 § 1.]
47.04.235
47.04.240 Public transportation information—Confidentiality. The department, a county, city, town, any other
public entity, and any private entity under the public-private
transportation initiatives authorized under chapter 47.46
RCW, that provides transit, high-speed ground transportation, high capacity transportation service, ferry service, toll
facilities, or other public transportation service or facilities
may only use personally identifiable information obtained
from the use of electronic toll payments, transit passes, or
other fare media such as magnetic strip cards or stored value
cards for billing purposes. This information may not be used
47.04.240
(2004 Ed.)
47.04.250
to track or monitor individual use of the public transportation
facilities or service, except for billing purposes and to provide statistical compilations and reports that do not identify
an individual. [1999 c 215 § 2.]
Personally identifying transit information exempt from disclosure: RCW
42.17.310.
47.04.250
47.04.250 Assaults by motorists on department
employees. (1) For the purposes of this section only,
"assault" means an act by a motorist that results in physical
injury to an employee of the department while engaged in
highway construction or maintenance activities along a roadway right of way (fence line to fence line, landscaped areas)
or in the loading and unloading of passenger vehicles in service of the vessel as a maritime employee not covered under
chapter 51.32 RCW or engaged in those work activities as a
Washington State Ferries terminal employee covered under
chapter 51.32 RCW.
(2) In recognition of the nature of employment in departmental highway construction or maintenance activities and
by the Washington State Ferries, this section provides a supplementary program to reimburse employees of the department for some of their costs attributable to their being the victims of assault by motorists. This program is limited to the
reimbursement provided in this section.
(3) An employee is entitled to receive the reimbursement
provided in this section only if the secretary finds that each of
the following has occurred:
(a) A motorist has assaulted the employee who is
engaged in highway construction or maintenance along a
roadway right of way (fence line to fence line, landscaped
areas) or service of the vessel as a maritime employee or terminal employee engaged in the loading or unloading of passenger vehicles and as a result the employee has sustained
demonstrated physical injuries that have required the
employee to miss one or more days of work;
(b) The assault is not attributable to any extent to the
employee's negligence, misconduct, or failure to comply with
any rules or conditions of employment; and
(c) The department of labor and industries has approved
the employee's workers' compensation application under
chapter 51.32 RCW, or for maritime employees the department of transportation risk management office has approved
maintenance and cure benefits under 46 U.S.C. Sec. 688 et
seq.
(4) The reimbursement authorized under this section is
as follows:
(a) The employee's accumulated sick leave days will not
be reduced for the workdays missed. The injured worker who
qualifies for and receives assault benefits will also receive
full standard benefits (vacation leave, sick leave, health
insurance, etc.) as if uninjured;
(b) For an employee covered by chapter 51.32 RCW, for
each workday missed for which the employee is not eligible
to receive compensation under chapter 51.32 RCW, the
employee will receive the full amount of the injured worker's
net pay at the time of injury; and
(c) In respect to workdays missed for which the
employee will receive or has received compensation under
chapter 51.32 RCW, or under federal maritime law benefits,
including the Jones Act, for an employee deemed a maritime
[Title 47 RCW—page 17]
Chapter 47.05
Title 47 RCW: Public Highways and Transportation
employee assigned to work in service of the vessel or a nonmaritime terminal employee covered under chapter 51.32
RCW, the employee will be reimbursed in an amount that,
when added to that compensation, will result in the employee
receiving no more than full net pay (gross pay less mandatory
and voluntary deductions) for the workdays missed.
(5) Reimbursement under this section may not last
longer than three hundred sixty-five consecutive days after
the date of the injury. No application for assault benefits is
valid nor may a claim be enforced unless it was made within
one year after the day upon which the injury occurred.
(6) The employee is not entitled to the reimbursement
provided in subsection (4) of this section for a workday for
which the secretary or an applicable designee finds that the
employee has not diligently pursued his or her compensation
remedies under chapter 51.32 RCW or federal maritime law,
including the Jones Act.
(7) The reimbursement may be made only for absences
that the secretary or an applicable designee believes are justified.
(8) While the employee is receiving reimbursement
under this section, he or she will continue to be classified as a
state employee, and the reimbursement amount is considered
as salary or wages.
(9) The department shall make all reimbursement payments required to be made to employees under this section.
The payments are considered as a salary or wage expense and
must be paid by the department in the same manner and from
the same appropriations as other salary and wage expenses
for the department.
(10) Nothing in this section precludes the department
from recovering the supplemental payments authorized by
this section from the assaulting motorist, and that recovery is
considered exclusive of recovery under chapter 51.24 RCW.
(11) If the legislature revokes the reimbursement authorized under this section or repeals this section, no affected
employee is entitled after that to receive the reimbursement
as a matter of contractual right. [2002 c 355 § 1.]
Chapter 47.05
Chapter 47.05 RCW
PRIORITY PROGRAMMING FOR
HIGHWAY DEVELOPMENT
Sections
47.05.010
47.05.021
47.05.022
47.05.025
47.05.030
47.05.035
47.05.051
47.05.090
Declaration of purpose.
Functional classification of highways.
Highways of statewide significance.
Highways of regional significance.
Six-year programs—Investments, improvements, preservation.
Allocation of funds, factors.
Six-year comprehensive investment program—Priority selection criteria—Improvement program criteria—Departure
from criteria.
Application of 1993 c 490—Deviations.
47.05.010
47.05.010 Declaration of purpose. The legislature
finds that solutions to state highway deficiencies have
become increasingly complex and diverse and that anticipated transportation revenues will fall substantially short of
the amount required to satisfy all transportation needs. Difficult investment trade-offs will be required.
[Title 47 RCW—page 18]
It is the intent of the legislature that investment of state
transportation funds to address deficiencies on the state highway system be based on a policy of priority programming
having as its basis the rational selection of projects and services according to factual need and an evaluation of life cycle
costs and benefits that are systematically scheduled to carry
out defined objectives within available revenue. The state
must develop analytic tools to use a common methodology to
measure benefits and costs for all modes.
The priority programming system must ensure preservation of the existing state highway system, relieve congestion,
provide mobility for people and goods, support the state's
economy, and promote environmental protection and energy
conservation.
The priority programming system must implement the
state-owned highway component of the statewide transportation plan, consistent with local and regional transportation
plans, by targeting state transportation investment to appropriate multimodal solutions that address identified state highway system deficiencies.
The priority programming system for improvements
must incorporate a broad range of solutions that are identified
in the statewide transportation plan as appropriate to address
state highway system deficiencies, including but not limited
to highway expansion, efficiency improvements, nonmotorized transportation facilities, high occupancy vehicle facilities, transit facilities and services, rail facilities and services,
and transportation demand management programs. [2002 c 5
§ 401; 1993 c 490 § 1; 1969 ex.s. c 39 § 1; 1963 c 173 § 1.]
Effective date—2002 c 5 §§ 401-404: "Sections 401 through 404 of
this act take effect July 1, 2002." [2002 c 5 § 417.]
Captions not law—Severability—2002 c 5: See notes following RCW
47.01.012.
47.05.021
47.05.021 Functional classification of highways. (1)
The transportation commission is hereby directed to conduct
periodic analyses of the entire state highway system, report
thereon to the chairs of the transportation committees of the
senate and house of representatives, including one copy to the
staff of each of the committees, biennially and based thereon,
to subdivide, classify, and subclassify according to their
function and importance all designated state highways and
those added from time to time and periodically review and
revise the classifications into the following three functional
classes:
(a) The "principal arterial system" shall consist of a connected network of rural arterial routes with appropriate extensions into and through urban areas, including all routes designated as part of the interstate system, which serve corridor
movements having travel characteristics indicative of substantial statewide and interstate travel;
(b) The "minor arterial system" shall, in conjunction
with the principal arterial system, form a rural network of
arterial routes linking cities and other activity centers which
generate long distance travel, and, with appropriate extensions into and through urban areas, form an integrated network providing interstate and interregional service; and
(c) The "collector system" shall consist of routes which
primarily serve the more important intercounty, intracounty,
and intraurban travel corridors, collect traffic from the system
of local access roads and convey it to the arterial system, and
(2004 Ed.)
Priority Programming for Highway Development
on which, regardless of traffic volume, the predominant
travel distances are shorter than on arterial routes.
(2) In making the functional classification the transportation commission shall adopt and give consideration to criteria
consistent with this section and federal regulations relating to
the functional classification of highways, including but not
limited to the following:
(a) Urban population centers within and without the state
stratified and ranked according to size;
(b) Important traffic generating economic activities,
including but not limited to recreation, agriculture, government, business, and industry;
(c) Feasibility of the route, including availability of alternate routes within and without the state;
(d) Directness of travel and distance between points of
economic importance;
(e) Length of trips;
(f) Character and volume of traffic;
(g) Preferential consideration for multiple service which
shall include public transportation;
(h) Reasonable spacing depending upon population density; and
(i) System continuity.
(3) The transportation commission or the legislature
shall designate state highways of statewide significance
under RCW 47.06.140. If the commission designates a state
highway of statewide significance, it shall submit a list of
such facilities for adoption by the legislature. This statewide
system shall include at a minimum interstate highways and
other statewide principal arterials that are needed to connect
major communities across the state and support the state's
economy.
(4) The transportation commission shall designate a
freight and goods transportation system. This statewide system shall include state highways, county roads, and city
streets. The commission, in cooperation with cities and counties, shall review and make recommendations to the legislature regarding policies governing weight restrictions and road
closures which affect the transportation of freight and goods.
[2002 c 56 § 301. Prior: 1998 c 245 § 95; 1998 c 171 § 5;
1993 c 490 § 2; 1987 c 505 § 50; 1979 ex.s. c 122 § 1; 1977
ex.s. c 130 § 1.]
Captions and subheadings not law—Severability—2002 c 56: See
RCW 36.120.900 and 36.120.901.
Severability—1979 ex.s. c 122: "If any provision of this act or its
application to any person or circumstance is held invalid, the remainder of
the act or the application of the provision to other persons or circumstances
is not affected." [1979 ex.s. c 122 § 10.]
Effective dates—1977 ex.s. c 130: "Section 1 of this 1977 act modifying the functional classification of state highways shall apply to the long
range plan for highway improvements and to the six year program for highway construction commencing July 1, 1979 and to the preparation thereof
and shall take effect July 1, 1977. Section 2 of this 1977 act shall take effect
July 1, 1979." [1977 ex.s. c 130 § 3.]
47.05.022
47.05.022 Highways of statewide significance. The
legislature designates as highways of statewide significance
those highways so designated by transportation commission
resolution number 660 as adopted on January 21, 2004.
[2004 c 232 § 1; 2002 c 56 § 302.]
Captions and subheadings not law—Severability—2002 c 56: See
RCW 36.120.900 and 36.120.901.
(2004 Ed.)
47.05.030
47.05.025
47.05.025 Highways of regional significance. Highways of regional significance may receive funding under the
conditions of RCW 36.120.020(8)(c). The following highways are of regional significance:
(1) That portion of state route number 9 that runs from
state route number 522 in the south to state route number 531
in the north;
(2) That portion of state route number 524 that runs from
state route number 5 easterly to state route number 522;
(3) That portion of state route number 704 from state
route number 5 to state route number 7. [2002 c 56 § 303.]
Captions and subheadings not law—Severability—2002 c 56: See
RCW 36.120.900 and 36.120.901.
47.05.030
47.05.030 Six- year programs—Investments,
improvements, preservation. The transportation commission shall adopt a comprehensive six-year investment program specifying program objectives and performance measures for the preservation and improvement programs defined
in this section. In the specification of investment program
objectives and performance measures, the transportation
commission, in consultation with the Washington state
department of transportation, shall define and adopt standards for effective programming and prioritization practices
including a needs analysis process. The analysis process must
ensure the identification of problems and deficiencies, the
evaluation of alternative solutions and trade-offs, and estimations of the costs and benefits of prospective projects. The
investment program must be revised biennially, effective on
July 1st of odd-numbered years. The investment program
must be based upon the needs identified in the state-owned
highway component of the statewide transportation plan as
defined in RCW 47.01.071(3).
(1) The preservation program consists of those investments necessary to preserve the existing state highway system and to restore existing safety features, giving consideration to lowest life cycle costing. The preservation program
must require use of the most cost-effective pavement surfaces, considering:
(a) Life-cycle cost analysis;
(b) Traffic volume;
(c) Subgrade soil conditions;
(d) Environmental and weather conditions;
(e) Materials available; and
(f) Construction factors.
The comprehensive six-year investment program for
preservation must identify projects for two years and an
investment plan for the remaining four years.
(2) The improvement program consists of investments
needed to address identified deficiencies on the state highway
system to increase mobility, address congestion, and improve
safety, support for the economy, and protection of the environment. The six-year investment program for improvements
must identify projects for two years and major deficiencies
proposed to be addressed in the six-year period giving consideration to relative benefits and life cycle costing. The
transportation commission shall give higher priority for correcting identified deficiencies on those facilities classified as
facilities of statewide significance as defined in RCW
47.06.140. Project prioritization must be based primarily
upon cost-benefit analysis, where appropriate.
[Title 47 RCW—page 19]
47.05.035
Title 47 RCW: Public Highways and Transportation
The transportation commission shall approve and
present the comprehensive six-year investment program to
the legislature in support of the biennial budget request under
RCW 44.40.070 and 44.40.080. [2002 c 5 § 402; 1998 c 171
§ 6; 1993 c 490 § 3; 1987 c 179 § 2; 1979 ex.s. c 122 § 2;
1977 ex.s. c 151 § 44; 1975 1st ex.s. c 143 § 1; 1973 2nd ex.s.
c 12 § 4; 1969 ex.s. c 39 § 3; 1965 ex.s. c 170 § 33; 1963 c
173 § 3.]
Effective date—2002 c 5 §§ 401-404: See note following RCW
47.05.010.
Captions not law—Severability—2002 c 5: See notes following RCW
47.01.012.
Severability—1979 ex.s. c 122: See note following RCW 47.05.021.
47.05.035
47.05.035 Allocation of funds, factors. (1) The department and the commission shall use the transportation demand
modeling tools developed under subsection (2) of this section
to evaluate investments based on the best mode or improvement, or mix of modes and improvements, to meet current
and future long-term demand within a corridor or system for
the lowest cost. The end result of these demand modeling
tools is to provide a cost-benefit analysis by which the department and the commission can determine the relative mobility
improvement and congestion relief each mode or improvement under consideration will provide and the relative investment each mode or improvement under consideration will
need to achieve that relief.
(2) The department will participate in the refinement,
enhancement, and application of existing transportation
demand modeling tools to be used to evaluate investments.
This participation and use of transportation demand modeling
tools will be phased in.
(3) In developing program objectives and performance
measures, the transportation commission shall evaluate
investment trade-offs between the preservation and improvement programs. In making these investment trade-offs, the
commission shall evaluate, using cost-benefit techniques,
roadway and bridge maintenance activities as compared to
roadway and bridge preservation program activities and
adjust those programs accordingly.
(4) The commission shall allocate the estimated revenue
between preservation and improvement programs giving primary consideration to the following factors:
(a) The relative needs in each of the programs and the
system performance levels that can be achieved by meeting
these needs;
(b) The need to provide adequate funding for preservation to protect the state's investment in its existing highway
system;
(c) The continuity of future transportation development
with those improvements previously programmed; and
(d) The availability of dedicated funds for a specific type
of work. [2002 c 5 § 403; 1993 c 490 § 4; 1987 c 179 § 3;
1979 ex.s. c 122 § 3; 1975 1st ex.s. c 143 § 2.]
Effective date—2002 c 5 §§ 401-404:
47.05.010.
See note following RCW
Captions not law—Severability—2002 c 5: See notes following RCW
47.01.012.
Severability—1979 ex.s. c 122: See note following RCW 47.05.021.
[Title 47 RCW—page 20]
47.05.051 Six-year comprehensive investment program—Priority selection criteria—Improvement program criteria—Departure from criteria. (1) The comprehensive six-year investment program shall be based upon the
needs identified in the state-owned highway component of
the statewide multimodal transportation plan as defined in
RCW 47.01.071(3) and priority selection systems that incorporate the following criteria:
(a) Priority programming for the preservation program
shall take into account the following, not necessarily in order
of importance:
(i) Extending the service life of the existing highway system, including using the most cost-effective pavement surfaces, considering:
(A) Life-cycle cost analysis;
(B) Traffic volume;
(C) Subgrade soil conditions;
(D) Environmental and weather conditions;
(E) Materials available; and
(F) Construction factors;
(ii) Ensuring the structural ability to carry loads imposed
upon highways and bridges; and
(iii) Minimizing life cycle costs. The transportation commission in carrying out the provisions of this section may delegate to the department of transportation the authority to
select preservation projects to be included in the six-year program.
(b) Priority programming for the improvement program
must be based primarily upon the following, not necessarily
in order of importance:
(i) Traffic congestion, delay, and accidents;
(ii) Location within a heavily traveled transportation corridor;
(iii) Except for projects in cities having a population of
less than five thousand persons, synchronization with other
potential transportation projects, including transit and multimodal projects, within the heavily traveled corridor; and
(iv) Use of benefit/cost analysis wherever feasible to
determine the value of the proposed project.
(c) Priority programming for the improvement program
may also take into account:
(i) Support for the state's economy, including job creation and job preservation;
(ii) The cost-effective movement of people and goods;
(iii) Accident and accident risk reduction;
(iv) Protection of the state's natural environment;
(v) Continuity and systematic development of the highway transportation network;
(vi) Consistency with local comprehensive plans developed under chapter 36.70A RCW including the following if
they have been included in the comprehensive plan:
(A) Support for development in and revitalization of
existing downtowns;
(B) Extent that development implements local comprehensive plans for rural and urban residential and nonresidential densities;
(C) Extent of compact, transit-oriented development for
rural and urban residential and nonresidential densities;
(D) Opportunities for multimodal transportation; and
(E) Extent to which the project accommodates planned
growth and economic development;
47.05.051
(2004 Ed.)
Statewide Transportation Planning
(vii) Consistency with regional transportation plans
developed under chapter 47.80 RCW;
(viii) Public views concerning proposed improvements;
(ix) The conservation of energy resources;
(x) Feasibility of financing the full proposed improvement;
(xi) Commitments established in previous legislative
sessions;
(xii) Relative costs and benefits of candidate programs.
(d) Major projects addressing capacity deficiencies
which prioritize allowing for preliminary engineering shall
be reprioritized during the succeeding biennium, based upon
updated project data. Reprioritized projects may be delayed
or canceled by the transportation commission if higher priority projects are awaiting funding.
(e) Major project approvals which significantly increase
a project's scope or cost from original prioritization estimates
shall include a review of the project's estimated revised priority rank and the level of funding provided. Projects may be
delayed or canceled by the transportation commission if
higher priority projects are awaiting funding.
(2) The commission may depart from the priority programming established under subsection (1) of this section:
(a) To the extent that otherwise funds cannot be utilized feasibly within the program; (b) as may be required by a court
judgment, legally binding agreement, or state and federal
laws and regulations; (c) as may be required to coordinate
with federal, local, or other state agency construction
projects; (d) to take advantage of some substantial financial
benefit that may be available; (e) for continuity of route
development; or (f) because of changed financial or physical
conditions of an unforeseen or emergent nature. The commission or secretary of transportation shall maintain in its files
information sufficient to show the extent to which the commission has departed from the established priority.
(3) The commission shall identify those projects that
yield freight mobility benefits or that alleviate the impacts of
freight mobility upon affected communities. [2002 c 189 § 3;
2002 c 5 § 406; 1998 c 175 § 12; 1993 c 490 § 5; 1987 c 179
§ 5; 1979 ex.s. c 122 § 5; 1975 1st ex.s. c 143 § 4.]
Intent—2002 c 5: "The legislature intends that funding for transportation mobility improvements be allocated to the worst traffic chokepoints in
the state. Furthermore, the legislature intends to fund projects that provide
systemic relief throughout a transportation corridor, rather than spot
improvements that fail to improve overall mobility within a corridor." [2002
c 5 § 405.]
Reports: "The department of transportation shall report the results of
its priority programming under RCW 47.05.051 to the transportation committees of the senate and house of representatives by December 1, 2003, and
December 1, 2005." [2002 c 5 § 407.]
Captions not law—Severability—2002 c 5: See notes following RCW
47.01.012.
Severability—1998 c 175: See RCW 47.06A.900.
Severability—1979 ex.s. c 122: See note following RCW 47.05.021.
47.05.090
47.05.090 Application of 1993 c 490—Deviations.
The provisions of chapter 490, Laws of 1993 modifying procedures for priority programming for highway development
as set forth in chapter 47.05 RCW, first apply to the comprehensive six-year state highway investment program for the
periods 1995 to 2001. For the transition biennium ending
June 30, 1995, the commission may deviate from the modi(2004 Ed.)
47.06.020
fied procedures prescribed by chapter 490, Laws of 1993.
[1993 c 490 § 6.]
Chapter 47.06
Chapter 47.06 RCW
STATEWIDE TRANSPORTATION PLANNING
Sections
47.06.010
47.06.020
47.06.030
47.06.040
47.06.043
47.06.045
47.06.050
47.06.060
47.06.070
47.06.080
47.06.090
47.06.100
47.06.110
47.06.120
47.06.130
47.06.140
47.06.900
Findings.
Role of department.
Transportation policy plan.
Statewide multimodal transportation plan.
Technical workers—Skill enhancement.
Freight mobility plan.
State-owned facilities component.
Aviation plan.
Marine ports and navigation plan.
Freight rail plan.
Intercity passenger rail plan.
Bicycle transportation and pedestrian walkways plan.
Public transportation plan.
High-capacity transportation planning and regional transportation planning—Role of department.
Special planning studies—Cost-benefit analysis.
Transportation facilities and services of statewide significance—Level of service standards.
Captions not part of law—1993 c 446.
Environmental review of transportation projects: RCW 47.01.290.
47.06.010
47.06.010 Findings. The legislature recognizes that the
ownership and operation of Washington's transportation system is spread among federal, state, and local government
agencies, regional transit agencies, port districts, and the private sector. The legislature also recognizes that transportation planning authority is shared on the local, regional, and
state levels, and that this planning must be a comprehensive
and coordinated effort. While significant authority for transportation planning is vested with local agencies and regional
transportation planning organizations under the growth management act, the legislature recognizes that certain transportation issues and facilities cross local and regional boundaries
and are vital to the statewide economy and the cross-state
mobility of people and goods. Therefore, the state has an
appropriate role in developing statewide transportation plans
that address state jurisdiction facilities and services as well as
transportation facilities and services of state interest. These
plans shall serve as a guide for short-term investment needs
and provide a long-range vision for transportation system
development. [1993 c 446 § 1.]
47.06.020
47.06.020 Role of department. The specific role of the
department in transportation planning shall be (1) ongoing
coordination and development of statewide transportation
policies that guide all Washington transportation providers;
(2) ongoing development of a statewide multimodal transportation plan that includes both state-owned and state-interest
facilities and services; (3) coordinating the state high-capacity transportation planning and regional transportation planning programs; and (4) conducting special transportation
planning studies that impact state transportation facilities or
relate to transportation facilities and services of statewide
significance. Specific requirements for each of these state
transportation planning components are described in this
chapter. [1993 c 446 § 2.]
[Title 47 RCW—page 21]
47.06.030
Title 47 RCW: Public Highways and Transportation
47.06.030
47.06.030 Transportation policy plan. The commission shall develop a state transportation policy plan that (1)
establishes a vision and goals for the development of the
statewide transportation system consistent with the state's
growth management goals, (2) identifies significant statewide transportation policy issues, and (3) recommends statewide transportation policies and strategies to the legislature
to fulfill the requirements of RCW 47.01.071(1). The state
transportation policy plan shall be the product of an ongoing
process that involves representatives of significant transportation interests and the general public from across the state.
The plan shall address how the department of transportation
will meet the transportation needs and expedite the completion of industrial projects of statewide significance. [1997 c
369 § 8; 1993 c 446 § 3.]
Industrial project of statewide significance—Defined: RCW 43.157.010.
cation and documentation as provided for in RCW 47.01.300
and this section is not intended to create a private right of
action or require an environmental impact statement as provided in chapter 43.21C RCW. [2002 c 189 § 4; 1998 c 199
§ 1; 1994 c 258 § 5; 1993 c 446 § 4.]
Captions not law—1994 c 258: See note following RCW 36.70A.420.
47.06.043
47.06.043 Technical workers—Skill enhancement.
The state interest component of the statewide multimodal
transportation plan must include a plan for enhancing the
skills of the existing technical transportation work force.
[2003 c 363 § 204.]
Findings—Intent—2003 c 363 §§ 201-206: See note following RCW
49.04.041.
Part headings not law—Severability—2003 c 363: See notes following RCW 47.28.241.
47.06.040
47.06.040 Statewide multimodal transportation plan.
The department shall develop a statewide multimodal transportation plan under RCW 47.01.071(3) and in conformance
with federal requirements, to ensure the continued mobility
of people and goods within regions and across the state in a
safe, cost-effective manner. The statewide multimodal transportation plan shall consist of:
(1) A state-owned facilities component, which shall
guide state investment for state highways including bicycle
and pedestrian facilities, and state ferries; and
(2) A state-interest component, which shall define the
state interest in aviation, marine ports and navigation, freight
rail, intercity passenger rail, bicycle transportation and pedestrian walkways, and public transportation, and recommend
actions in coordination with appropriate public and private
transportation providers to ensure that the state interest in
these transportation modes is met.
The plans developed under each component must be
consistent with the state transportation policy plan and with
each other, reflect public involvement, be consistent with
regional transportation planning, high-capacity transportation planning, and local comprehensive plans prepared under
chapter 36.70A RCW, and include analysis of intermodal
connections and choices. A primary emphasis for these plans
shall be the relief of congestion, the preservation of existing
investments and downtowns, ability to attract or accommodate planned population, and employment growth, the
improvement of traveler safety, the efficient movement of
freight and goods, and the improvement and integration of all
transportation modes to create a seamless intermodal transportation system for people and goods.
In the development of the statewide multimodal transportation plan, the department shall identify and document
potential affected environmental resources, including, but not
limited to, wetlands, storm water runoff, flooding, air quality,
fish passage, and wildlife habitat. The department shall conduct its environmental identification and documentation in
coordination with all relevant environmental regulatory
authorities, including, but not limited to, local governments.
The department shall give the relevant environmental regulatory authorities an opportunity to review the department's
environmental plans. The relevant environmental regulatory
authorities shall provide comments on the department's environmental plans in a timely manner. Environmental identifi[Title 47 RCW—page 22]
47.06.045
47.06.045 Freight mobility plan. The state-interest
component of the statewide multimodal transportation plan
shall include a freight mobility plan which shall assess the
transportation needs to ensure the safe, reliable, and efficient
movement of goods within and through the state and to
ensure the state's economic vitality. [1998 c 175 § 10.]
Severability—1998 c 175: See RCW 47.06A.900.
47.06.050
47.06.050 State-owned facilities component. The
state-owned facilities component of the statewide transportation plan shall consist of:
(1) The state highway system plan, which identifies program and financing needs and recommends specific and
financially realistic improvements to preserve the structural
integrity of the state highway system, ensure acceptable operating conditions, and provide for enhanced access to scenic,
recreational, and cultural resources. The state highway system plan shall contain the following elements:
(a) A system preservation element, which shall establish
structural preservation objectives for the state highway system including bridges, identify current and future structural
deficiencies based upon analysis of current conditions and
projected future deterioration, and recommend program
funding levels and specific actions necessary to preserve the
structural integrity of the state highway system consistent
with adopted objectives. Lowest life cycle cost methodologies must be used in developing a pavement management
system. This element shall serve as the basis for the preservation component of the six-year highway program and the
two-year biennial budget request to the legislature;
(b) A highway maintenance element, establishing service levels for highway maintenance on state-owned highways that meet benchmarks established by the transportation
commission. The highway maintenance element must
include an estimate of costs for achieving those service levels
over twenty years. This element will serve as the basis for the
maintenance component of the six-year highway program
and the two-year biennial budget request to the legislature;
(c) A capacity and operational improvement element,
which shall establish operational objectives, including safety
considerations, for moving people and goods on the state
highway system, identify current and future capacity, operational, and safety deficiencies, and recommend program
(2004 Ed.)
Statewide Transportation Planning
funding levels and specific improvements and strategies necessary to achieve the operational objectives. In developing
capacity and operational improvement plans the department
shall first assess strategies to enhance the operational efficiency of the existing system before recommending system
expansion. Strategies to enhance the operational efficiencies
include but are not limited to access management, transportation system management, demand management, and highoccupancy vehicle facilities. The capacity and operational
improvement element must conform to the state implementation plan for air quality and be consistent with regional transportation plans adopted under chapter 47.80 RCW, and shall
serve as the basis for the capacity and operational improvement portions of the six-year highway program and the twoyear biennial budget request to the legislature;
(d) A scenic and recreational highways element, which
shall identify and recommend designation of scenic and recreational highways, provide for enhanced access to scenic,
recreational, and cultural resources associated with designated routes, and recommend a variety of management strategies to protect, preserve, and enhance these resources. The
department, affected counties, cities, and towns, regional
transportation planning organizations, and other state or federal agencies shall jointly develop this element;
(e) A paths and trails element, which shall identify the
needs of nonmotorized transportation modes on the state
transportation systems and provide the basis for the investment of state transportation funds in paths and trails, including funding provided under chapter 47.30 RCW.
(2) The state ferry system plan, which shall guide capital
and operating investments in the state ferry system. The plan
shall establish service objectives for state ferry routes, forecast travel demand for the various markets served in the system, develop strategies for ferry system investment that consider regional and statewide vehicle and passenger needs,
support local land use plans, and assure that ferry services are
fully integrated with other transportation services. The plan
must provide for maintenance of capital assets. The plan must
also provide for preservation of capital assets based on lowest
life cycle cost methodologies. The plan shall assess the role
of private ferries operating under the authority of the utilities
and transportation commission and shall coordinate ferry system capital and operational plans with these private operations. The ferry system plan must be consistent with the
regional transportation plans for areas served by the state
ferry system, and shall be developed in conjunction with the
ferry advisory committees. [2002 c 5 § 413; 1993 c 446 § 5.]
Finding—Intent—2002 c 5: "The legislature finds that roads, streets,
bridges, and highways in the state represent public assets worth over one
hundred billion dollars. These investments require regular maintenance and
preservation, or rehabilitation, to provide cost-effective transportation services. Many of these facilities are in poor condition. Given the magnitude of
public investment and the importance of safe, reliable roadways to the
motoring public, the legislature intends to create stronger accountability to
ensure that cost-effective maintenance and preservation is provided for these
transportation facilities." [2002 c 5 § 408.]
Captions not law—Severability—2002 c 5: See notes following RCW
47.01.012.
47.06.060
47.06.060 Aviation plan. The state-interest component
of the statewide multimodal transportation plan shall include
an aviation plan, which shall fulfill the statewide aviation
(2004 Ed.)
47.06.100
planning requirements of the federal government, coordinate
statewide aviation planning, and identify the program needs
for public use and state airports. [1993 c 446 § 6.]
47.06.070
47.06.070 Marine ports and navigation plan. The
state-interest component of the statewide multimodal transportation plan shall include a state marine ports and navigation plan, which shall assess the transportation needs of
Washington's marine ports, including navigation, and identify transportation system improvements needed to support
the international trade and economic development role of
Washington's marine ports. [1993 c 446 § 7.]
47.06.080
47.06.080 Freight rail plan. The state-interest component of the statewide multimodal transportation plan shall
include a state freight rail plan, which shall fulfill the statewide freight rail planning requirements of the federal government, identify freight rail mainline issues, identify light-density freight rail lines threatened with abandonment, establish
criteria for determining the importance of preserving the service or line, and recommend priorities for the use of state rail
assistance and state rail banking program funds, as well as
other available sources of funds. The plan shall also identify
existing intercity rail rights of way that should be preserved
for future transportation use. [1993 c 446 § 8.]
47.06.090
47.06.090 Intercity passenger rail plan. The stateinterest component of the statewide multimodal transportation plan shall include an intercity passenger rail plan, which
shall analyze existing intercity passenger rail service and recommend improvements to that service under the state passenger rail service program including depot improvements,
potential service extensions, and ways to achieve higher train
speeds.
For purposes of maintaining and preserving any stateowned component of the state's passenger rail program, the
statewide multimodal transportation plan must identify all
such assets and provide a preservation plan based on lowest
life cycle cost methodologies. [2002 c 5 § 414; 1993 c 446 §
9.]
Finding—Intent—2002 c 5: See note following RCW 47.06.050.
Captions not law—Severability—2002 c 5: See notes following RCW
47.01.012.
47.06.100
47.06.100 Bicycle transportation and pedestrian
walkways plan. The state-interest component of the statewide multimodal transportation plan shall include a bicycle
transportation and pedestrian walkways plan, which shall
propose a statewide strategy for addressing bicycle and
pedestrian transportation, including the integration of bicycle
and pedestrian pathways with other transportation modes; the
coordination between local governments, regional agencies,
and the state in the provision of such facilities; the role of
such facilities in reducing traffic congestion; and an assessment of statewide bicycle and pedestrian transportation
needs. This plan shall satisfy the federal requirement for a
long-range bicycle transportation and pedestrian walkways
plan. [1993 c 446 § 10.]
[Title 47 RCW—page 23]
47.06.110
Title 47 RCW: Public Highways and Transportation
47.06.110 Public transportation plan. The state-interest component of the statewide multimodal transportation
plan shall include a state public transportation plan that:
(1) Articulates the state vision of an interest in public
transportation and provides quantifiable objectives, including
benefits indicators;
(2) Identifies the goals for public transit and the roles of
federal, state, regional, and local entities in achieving those
goals;
(3) Recommends mechanisms for coordinating state,
regional, and local planning for public transportation;
(4) Recommends mechanisms for coordinating public
transportation with other transportation services and modes;
(5) Recommends criteria, consistent with the goals identified in subsection (2) of this section and with RCW
82.44.180 (2) and (3), for existing federal authorizations
administered by the department to transit agencies; and
(6) Recommends a statewide public transportation facilities and equipment management system as required by federal law.
In developing the state public transportation plan, the
department shall involve local jurisdictions, public and private providers of transportation services, nonmotorized interests, and state agencies with an interest in public transportation, including but not limited to the departments of community, trade, and economic development, social and health
services, and ecology, the office of the superintendent of public instruction, the office of the governor, and the office of
financial management.
The department shall submit an initial report to the legislative transportation committee by December 1, 1993, and
shall provide annual reports summarizing the plan's progress
each year thereafter. [1996 c 186 § 512; 1995 c 399 § 120;
1993 c 446 § 11.]
47.06.110
Findings—Intent—Part headings not law—Effective date—1996 c
186: See notes following RCW 43.330.904.
Environmental review of transportation projects: RCW 47.01.290.
47.06.120
47.06.120 High-capacity transportation planning
and regional transportation planning—Role of department. The department's role in high-capacity transportation
planning and regional transportation planning is to administer
state planning grants for these purposes, represent the interests of the state in these regional planning processes, and
coordinate other department planning with these regional
efforts, including those under RCW 81.104.060. [1993 c 446
§ 12.]
47.06.130
47.06.130 Special planning studies—Cost-benefit
analysis. (1) The department may carry out special transportation planning studies to resolve specific issues with the
development of the state transportation system or other statewide transportation issues.
(2) The department shall conduct multimodal corridor
analyses on major congested corridors where needed
improvements are likely to cost in excess of one hundred million dollars. Analysis will include the cost-effectiveness of all
feasible strategies in addressing congestion or improving
mobility within the corridor, and must recommend the most
effective strategy or mix of strategies to address identified
deficiencies. A long-term view of corridors must be
[Title 47 RCW—page 24]
employed to determine whether an existing corridor should
be expanded, a city or county road should become a state
route, and whether a new corridor is needed to alleviate congestion and enhance mobility based on travel demand. To the
extent practicable, full costs of all strategies must be reflected
in the analysis. At a minimum, this analysis must include:
(a) The current and projected future demand for total
person trips on that corridor;
(b) The impact of making no improvements to that corridor;
(c) The daily cost per added person served for each mode
or improvement proposed to meet demand;
(d) The cost per hour of travel time saved per day for
each mode or improvement proposed to meet demand; and
(e) How much of the current and anticipated future
demand will be met and left unmet for each mode or
improvement proposed to meet demand.
The end result of this analysis will be to provide a costbenefit analysis by which policymakers can determine the
most cost-effective improvement or mode, or mix of
improvements and modes, for increasing mobility and reducing congestion. [2002 c 5 § 404; 1993 c 446 § 13.]
Effective date—2002 c 5 §§ 401-404: See note following RCW
47.05.010.
Captions not law—Severability—2002 c 5: See notes following RCW
47.01.012.
47.06.140
47.06.140 Transportation facilities and services of
statewide significance—Level of service standards. The
legislature declares the following transportation facilities and
services to be of statewide significance: The interstate highway system, interregional state principal arterials including
ferry connections that serve statewide travel, intercity passenger rail services, intercity high-speed ground transportation, major passenger intermodal terminals excluding all airport facilities and services, the freight railroad system, the
Columbia/Snake navigable river system, marine port facilities and services that are related solely to marine activities
affecting international and interstate trade, and high-capacity
transportation systems serving regions as defined in RCW
81.104.015. The department, in cooperation with regional
transportation planning organizations, counties, cities, transit
agencies, public ports, private railroad operators, and private
transportation providers, as appropriate, shall plan for
improvements to transportation facilities and services of
statewide significance in the statewide multimodal plan.
Improvements to facilities and services of statewide significance identified in the statewide multimodal plan are essential state public facilities under RCW 36.70A.200.
The department of transportation, in consultation with
local governments, shall set level of service standards for
state highways and state ferry routes of statewide significance. Although the department shall consult with local governments when setting level of service standards, the department retains authority to make final decisions regarding level
of service standards for state highways and state ferry routes
of statewide significance. In establishing level of service
standards for state highways and state ferry routes of statewide significance, the department shall consider the necessary balance between providing for the free interjurisdic(2004 Ed.)
Freight Mobility
tional movement of people and goods and the needs of local
communities using these facilities. [1998 c 171 § 7.]
Highways of statewide significance: RCW 47.05.022.
47.06.900 Captions not part of law—1993 c 446. Captions used in this chapter do not constitute any part of the law.
[1993 c 446 § 16.]
47.06.900
Chapter 47.06A
Chapter 47.06A RCW
FREIGHT MOBILITY
Sections
47.06A.001
47.06A.010
47.06A.020
47.06A.030
47.06A.040
47.06A.050
47.06A.060
47.06A.070
47.06A.080
47.06A.900
Findings.
Definitions.
Board—Duties.
Board—Creation—Membership.
Board—Administration and staffing.
Allocation of funds.
Grants and loans.
Records.
Port district development plans.
Severability—1998 c 175.
47.06A.001 Findings. The legislature finds that:
(1) Washington state is uniquely positioned as a gateway
to the global economy. As the most trade-dependent state in
the nation, per capita, Washington's economy is highly
dependent on an efficient multimodal transportation network
in order to remain competitive.
(2) The vitality of the state's economy is placed at risk by
growing traffic congestion that impedes the safe and efficient
movement of goods. The absence of a comprehensive and
coordinated state policy that facilitates freight movements to
local, national, and international markets limits trade opportunities.
(3) Freight corridors that serve international and domestic interstate and intrastate trade, and those freight corridors
that enhance the state's competitive position through regional
and global gateways are strategically important. In many
instances, movement of freight on these corridors is diminished by: Barriers that block or delay access to intermodal
facilities where freight is transferred from one mode of transport to another; conflicts between rail and road traffic; constraints on rail capacity; highway capacity constraints, congestion, and condition; waterway system depths that affect
capacity; and institutional, regulatory, and operational barriers.
(4) Rapidly escalating population growth is placing an
added burden on streets, roads, and highways that serve as
freight corridors. Community benefits from economic activity associated with freight movement often conflict with
community concerns over safety, mobility, [and] environmental quality. Efforts to minimize community impacts in
areas of high freight movements that encourage the active
participation of communities in the early stages of proposed
public and private infrastructure investments will facilitate
needed freight mobility improvements.
(5) Ownership of the freight mobility network is fragmented and spread across various public jurisdictions, private
companies, and state and national borders. Transportation
projects have grown in complexity and size, requiring more
resources and longer implementation time frames. Currently,
there is no comprehensive and integrated framework for
47.06A.001
(2004 Ed.)
47.06A.010
planning the freight mobility needs of public and private
stakeholders in the freight transportation system. A coordinated planning process should identify new infrastructure
investments that are integrated by public and private planning
bodies into a multimodal and multijurisdictional network in
all areas of the state, urban and rural, east and west. The state
should integrate freight mobility goals with state policy on
related issues such as economic development, growth management, and environmental management.
(6) State investment in projects that enhance or mitigate
freight movements, should pay special attention to solutions
that utilize a corridor solution to address freight mobility
issues with important transportation and economic impacts
beyond any local area. The corridor approach builds partnerships and fosters coordinated planning among jurisdictions
and the public and private sectors.
(7) It is the policy of the state of Washington that limited
public transportation funding and competition between
freight and general mobility improvements for the same fund
sources require strategic, prioritized freight investments that
reduce barriers to freight movement, maximize cost-effectiveness, yield a return on the state's investment, require complementary investments by public and private interests, and
solve regional freight mobility problems. State financial
assistance for freight mobility projects must leverage other
funds from all potential partners and sources, including federal, county, city, port district, and private capital. [1998 c
175 § 1.]
47.06A.010 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Board" means the freight mobility strategic investment board created in RCW 47.06A.030.
(2) "Department" means the department of transportation.
(3) "Freight mobility" means the safe, reliable, and efficient movement of goods within and through the state to
ensure the state's economic vitality.
(4) "Local governments" means cities, towns, counties,
special purpose districts, port districts, and any other municipal corporations or quasi-municipal corporations in the state
excluding school districts.
(5) "Public entity" means a state agency, city, town,
county, port district, or municipal or regional planning organization.
(6) "Strategic freight corridor" means a transportation
corridor of great economic importance within an integrated
freight system that:
(a) Serves international and domestic interstate and intrastate trade;
(b) Enhances the state's competitive position through
regional and global gateways;
(c) Carries freight tonnages of at least:
(i) Four million gross tons annually on state highways,
city streets, and county roads;
(ii) Five million gross tons annually on railroads; or
(iii) Two and one-half million net tons on waterways;
and
(d) Has been designated a strategic corridor by the board
under RCW 47.06A.020(3). However, new alignments to,
47.06A.010
[Title 47 RCW—page 25]
47.06A.020
Title 47 RCW: Public Highways and Transportation
realignments of, and new links to strategic corridors that
enhance freight movement may qualify, even though no tonnage data exists for facilities to be built in the future. [1998 c
175 § 2.]
47.06A.020 Board—Duties. (1) The board shall:
(a) Adopt rules and procedures necessary to implement
the freight mobility strategic investment program;
(b) Solicit from public entities proposed projects that
meet eligibility criteria established in accordance with subsection (4) of this section; and
(c) Review and evaluate project applications based on
criteria established under this section, and prioritize and
select projects comprising a portfolio to be funded in part
with grants from state funds appropriated for the freight
mobility strategic investment program. In determining the
appropriate level of state funding for a project, the board shall
ensure that state funds are allocated to leverage the greatest
amount of partnership funding possible. After selecting
projects comprising the portfolio, the board shall submit them
as part of its budget request to the office of financial management and the legislature. The board shall ensure that projects
submitted as part of the portfolio are not more appropriately
funded with other federal, state, or local government funding
mechanisms or programs. The board shall reject those
projects that appear to improve overall general mobility with
limited enhancement for freight mobility.
The board shall provide periodic progress reports on its
activities to the office of financial management and the legislative transportation committee.
(2) The board may:
(a) Accept from any state or federal agency, loans or
grants for the financing of any transportation project and
enter into agreements with any such agency concerning the
loans or grants;
(b) Provide technical assistance to project applicants;
(c) Accept any gifts, grants, or loans of funds, property,
or financial, or other aid in any form from any other source on
any terms and conditions which are not in conflict with this
chapter;
(d) Adopt rules under chapter 34.05 RCW as necessary
to carry out the purposes of this chapter; and
(e) Do all things necessary or convenient to carry out the
powers expressly granted or implied under this chapter.
(3) The board shall designate strategic freight corridors
within the state. The board shall update the list of designated
strategic corridors not less than every two years, and shall
establish a method of collecting and verifying data, including
information on city and county-owned roadways.
(4) From June 11, 1998, through the biennium ending
June 30, 2001, the board shall utilize threshold project eligibility criteria that, at a minimum, includes the following:
(a) The project must be on a strategic freight corridor;
(b) The project must meet one of the following conditions:
(i) It is primarily aimed at reducing identified barriers to
freight movement with only incidental benefits to general or
personal mobility; or
(ii) It is primarily aimed at increasing capacity for the
movement of freight with only incidental benefits to general
or personal mobility; or
47.06A.020
[Title 47 RCW—page 26]
(iii) It is primarily aimed at mitigating the impact on
communities of increasing freight movement, including roadway/railway conflicts; and
(c) The project must have a total public benefit/total public cost ratio of equal to or greater than one.
(5) From June 11, 1998, through the biennium ending
June 30, 2001, the board shall use the multicriteria analysis
and scoring framework for evaluating and ranking eligible
freight mobility and freight mitigation projects developed by
the freight mobility project prioritization committee and contained in the January 16, 1998, report entitled "Project Eligibility, Priority and Selection Process for a Strategic Freight
Investment Program." The prioritization process shall measure the degree to which projects address important program
objectives and shall generate a project score that reflects a
project's priority compared to other projects. The board shall
assign scoring points to each criterion that indicate the relative importance of the criterion in the overall determination
of project priority. After June 30, 2001, the board may supplement and refine the initial project priority criteria and
scoring framework developed by the freight mobility project
prioritization committee as expertise and experience is
gained in administering the freight mobility program.
(6) It is the intent of the legislature that each freight
mobility project contained in the project portfolio submitted
by the board utilize the greatest amount of nonstate funding
possible. The board shall adopt rules that give preference to
projects that contain the greatest levels of financial participation from nonprogram fund sources. The board shall consider
twenty percent as the minimum partnership contribution, but
shall also ensure that there are provisions allowing exceptions for projects that are located in areas where minimal
local funding capacity exists or where the magnitude of the
project makes the adopted partnership contribution financially unfeasible.
(7) The board shall develop and recommend policies that
address operational improvements that primarily benefit and
enhance freight movement, including, but not limited to, policies that reduce congestion in truck lanes at border crossings
and weigh stations and provide for access to ports during
nonpeak hours. [1999 c 216 § 1; 1998 c 175 § 3.]
47.06A.030 Board—Creation—Membership. (1)
The freight mobility strategic investment board is created.
The board shall convene by July 1, 1998.
(2) The board is composed of twelve members. The following members are appointed by the governor for terms of
four years, except that five members initially are appointed
for terms of two years: (a) Two members, one of whom is
from a city located within or along a strategic freight corridor, appointed from a list of at least four persons nominated
by the association of Washington cities or its successor; (b)
two members, one of whom is from a county having a strategic freight corridor within its boundaries, appointed from a
list of at least four persons nominated by the Washington
state association of counties or its successor; (c) two members, one of whom is from a port district located within or
along a strategic freight corridor, appointed from a list of at
least four persons nominated by the Washington public ports
association or its successor; (d) one member representing the
office of financial management; (e) one member appointed as
47.06A.030
(2004 Ed.)
Coordinating Special Needs Transportation
a representative of the trucking industry; (f) one member
appointed as a representative of the railroads; (g) the secretary of the department of transportation; (h) one member representing the steamship industry; and (i) one member of the
general public. In appointing the general public member, the
governor shall endeavor to appoint a member with special
expertise in relevant fields such as public finance, freight
transportation, or public works construction. The governor
shall appoint the general public member as chair of the board.
In making appointments to the board, the governor shall
ensure that each geographic region of the state is represented.
(3) Members of the board shall be reimbursed for reasonable and customary travel expenses as provided in RCW
43.03.050 and 43.03.060.
(4) If a vacancy on the board occurs by death, resignation, or otherwise, the governor shall fill the vacant position
for the unexpired term. Each vacancy in a position appointed
from lists provided by the associations and departments
under subsection (2) of this section must be filled from a list
of at least four persons nominated by the relevant association
or associations.
(5) The appointments made in subsection (2) of this section are not subject to confirmation. [1999 c 216 § 2; 1998 c
175 § 4.]
47.06A.040
47.06A.040 Board—Administration and staffing.
The board, at its option, may either appoint an executive
director, who shall serve at its pleasure and whose salary
shall be set by the board or make provisions ensuring the
responsibilities of the executive director are carried out by an
existing transportation-related state agency or by private contract. Staff support to the board shall be provided by the
department of transportation, the transportation improvement
board, and the county road administration board, or their successor agencies. [1999 c 216 § 3; 1998 c 175 § 5.]
47.06A.050
47.06A.050 Allocation of funds. (1) For the purpose of
allocating funds for the freight mobility strategic investment
program, the board shall allocate the first fifty-five percent of
funds to the highest priority projects, without regard to location.
(2) The remaining funds shall be allocated equally
among three regions of the state, defined as follows:
(a) The Puget Sound region includes King, Pierce, and
Snohomish counties;
(b) The western Washington region includes Clallum,
Jefferson, Island, Kitsap, San Juan, Skagit, Whatcom, Clark,
Cowlitz, Grays Harbor, Lewis, Mason, Pacific, Skamania,
Thurston, and Wahkiakum counties; and
(c) The eastern Washington region includes Adams,
Chelan, Douglas, Ferry, Grant, Lincoln, Okanogan, Pend
Oreille, Spokane, Stevens, Whitman, Asotin, Benton,
Columbia, Franklin, Garfield, Kittitas, Klickitat, Walla
Walla, and Yakima counties.
(3) If a region does not have enough qualifying projects
to utilize its allocation of funds, the funds will be made available to the next highest priority project, without regard to
location.
(4) In the event that a proposal contains projects in more
than one region, for purposes of assuring that equitable geo(2004 Ed.)
Chapter 47.06B
graphic distributions are made under subsection (2) of this
section, the board shall evaluate the proposal and proportionally assign the benefits that are attributable to each region.
(5) If the board identifies a project for funding, but later
determines that the project is not ready to proceed at the time
the legislature's funding decision is pending, the board shall
recommend removing the project from consideration and the
next highest priority project shall be substituted in the project
portfolio. Any project removed from funding consideration
because it is not ready to proceed shall retain its position on
the priority project list and is eligible to be recommended for
funding in the next project portfolio submitted by the board.
[1998 c 175 § 6.]
47.06A.060
47.06A.060 Grants and loans. In order to aid the
financing of eligible freight mobility projects, the board may:
(1) Make grants or loans from funds appropriated for the
freight mobility strategic investment program for the purpose
of financing freight mobility projects. The board may require
terms and conditions as it deems necessary or convenient to
carry out the purposes of this chapter.
(2) The state shall not bear the financial burden for
project costs unrelated to the movement of freight. Project
amenities unrelated to the movement of freight may not be
submitted to the board as part of a project proposal under the
freight mobility strategic investment program.
(3) All freight mobility projects aided in whole or in part
under this chapter must have a public entity designated as the
lead project proponent. [1998 c 175 § 7.]
47.06A.070
47.06A.070 Records. The board shall keep proper
records and shall be subject to audit by the state auditor.
[1998 c 175 § 8.]
47.06A.080
47.06A.080 Port district development plans. Port districts in the state shall submit their development plans to the
relevant regional transportation planning organization or
metropolitan planning organization, the department, and
affected cities and counties to better coordinate the development and funding of freight mobility projects. [1998 c 175 §
9.]
47.06A.900
47.06A.900 Severability—1998 c 175. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1998 c 175 § 15.]
Chapter 47.06B
Chapter 47.06B RCW
COORDINATING SPECIAL
NEEDS TRANSPORTATION
Sections
47.06B.010
47.06B.012
47.06B.015
47.06B.020
47.06B.030
47.06B.030
47.06B.040
47.06B.900
Finding—Intent.
Definitions.
Program for Agency Coordinated Transportation.
Agency council on coordinated transportation—Creation,
membership, staff.
Council—Duties (as amended by 1999 c 372).
Council—Duties (as amended by 1999 c 385).
Local planning forums.
Council—Termination.
[Title 47 RCW—page 27]
47.06B.010
47.06B.901
Title 47 RCW: Public Highways and Transportation
Repealer.
47.06B.010 Finding—Intent. (Effective until June 30,
2008.) The legislature finds that transportation systems for
persons with special needs are not operated as efficiently as
possible. In some cases, programs established by the legislature to assist persons with special needs can not be accessed
due to these inefficiencies and coordination barriers.
It is the intent of the legislature that public transportation
agencies, pupil transportation programs, private nonprofit
transportation providers, and other public agencies sponsoring programs that require transportation services coordinate
those transportation services. Through coordination of transportation services, programs will achieve increased efficiencies and will be able to provide more rides to a greater number of persons with special needs. [1999 c 385 § 1; 1998 c
173 § 1.]
47.06B.010
47.06B.012 Definitions. (Effective until June 30,
2008.) The definitions in this section apply throughout this
chapter.
(1) "Persons with special transportation needs" means
those persons, including their personal attendants, who
because of physical or mental disability, income status, or
age are unable to transport themselves or purchase transportation.
(2) "Special needs coordinated transportation" is transportation for persons with special transportation needs that is
developed through a collaborative community process
involving transportation providers; human service programs
and agencies; consumers; social, educational, and health service providers; employer and business representatives;
employees and employee representatives; and other affected
parties. [1999 c 385 § 2.]
47.06B.012
potential effects on the client transportation costs of other
agencies or programs are considered. Affected agencies are
given an opportunity to influence the decision if the potential
impact is negative.
(4) Open local market mechanisms give all providers
who meet minimum standards an opportunity to participate in
the program, and, in addition, allow for cost comparisons so
that purchasers can select the least expensive trip most appropriate to the customer's needs.
(5) There is flexibility in using the available vehicles in a
community so that the ability to transport people is not
restricted by categorical claims to vehicles.
(6) There is maximum sharing of operating facilities and
administrative services, to avoid duplication of costly program elements.
(7) Trip sponsors and service providers have agreed on a
process for allocating costs and billing when they share use of
vehicles.
(8) Minimum standards exist for at least safety, driver
training, maintenance, vehicles, and technology to eliminate
barriers that may prevent sponsors from using each other's
vehicles or serving each other's clients.
(9) The system is user friendly. The fact that the system
is supported by a multitude of programs and agencies with
different eligibility, contracting, service delivery, payment,
and funding structures does not negatively affect the customer's ability to access service.
(10) Support is provided for research, technology
improvements, and sharing of best practices from other communities, so that the system can be continually improved.
(11) There are performance goals and an evaluation process that leads to continuous system improvement. [1999 c
385 § 3.]
47.06B.020 Agency council on coordinated transportation—Creation, membership, staff. (Effective until June
30, 2008.) (1) The agency council on coordinated transportation is created. The council is composed of nine voting members and eight nonvoting, legislative members.
(2) The nine voting members are the superintendent of
public instruction or a designee, the secretary of transportation or a designee, the secretary of the department of social
and health services or a designee, and six members appointed
by the governor as follows:
(a) One representative from the office of the governor;
(b) Two persons who are consumers of special needs
transportation services;
(c) One representative from the Washington association
of pupil transportation;
(d) One representative from the Washington state transit
association; and
(e) One of the following:
(i) A representative from the community transportation
association of the Northwest; or
(ii) A representative from the community action council
association.
(3) The eight nonvoting members are legislators as follows:
(a) Four members from the house of representatives, two
from each of the two largest caucuses, appointed by the
speaker of the house of representatives, two who are mem47.06B.020
47.06B.015 Program for Agency Coordinated Transportation. (Effective until June 30, 2008.) In order to
increase efficiency, to reduce waste and duplication, to
enable people to access social and health services, to provide
a basic level of mobility, and to extend and improve transportation services to people with special transportation needs,
the state shall implement the Program for Agency Coordinated Transportation. The program will improve transportation efficiency and effectiveness to maximize the use of community resources so that more people can be served within
available funding levels.
The Program for Agency Coordinated Transportation
will facilitate a statewide approach to coordination and will
support the development of community-based coordinated
transportation systems that exhibit the following characteristics:
(1) Organizations serving persons with special transportation needs share responsibility for ensuring that customers
can access services.
(2) There is a single entry process for customers to use to
have trips arranged and scheduled, so the customer does not
have to contact different locations based on which sponsoring
agency or program is paying for the trip.
(3) A process is in place so that when decisions are made
by service organizations on facility siting or program policy
implementation, the costs of client transportation and the
47.06B.015
[Title 47 RCW—page 28]
(2004 Ed.)
Coordinating Special Needs Transportation
bers of the house transportation policy and budget committee
and two who are members of the house appropriations committee; and
(b) Four members from the senate, two from each of the
two largest caucuses, appointed by the president of the senate, two members of the transportation committee and two
members of the ways and means committee.
(4) Gubernatorial appointees of the council will serve
two-year terms. Members may not receive compensation for
their service on the council, but will be reimbursed for actual
and necessary expenses incurred in performing their duties as
members as set forth in RCW 43.03.220.
(5) The secretary of transportation or a designee shall
serve as the chair.
(6) The department of transportation shall provide necessary staff support for the council.
(7) The council may receive gifts, grants, or endowments
from public or private sources that are made from time to
time, in trust or otherwise, for the use and benefit of the purposes of the council and spend gifts, grants, or endowments
or income from the public or private sources according to
their terms, unless the receipt of the gifts, grants, or endowments violates RCW 42.17.710. [1998 c 173 § 2.]
47.06B.030
47.06B.030 Council—Duties (as amended by 1999 c 372). (Effective
until June 30, 2008.) The council shall:
(1) Develop standards and strategies for coordinating special needs
transportation;
(2) Identify and develop, fund as resources are made available, and
monitor coordinated transportation pilot projects;
(3) Disseminate and encourage the widespread implementation of successful demonstration projects;
(4) Identify and address barriers to transportation coordination;
(5) Recommend to the legislature changes in law to assist coordination
of transportation services;
(6) Act as an information clearinghouse and advocate for coordinated
transportation;
(7) Petition the office of financial management to make whatever
changes are deemed necessary to identify transportation costs in all executive agency budgets((;
(8) Report to the legislature by December 1, 1998, on council activities
including, but not limited to, what demonstration projects have been undertaken, how coordination affected service levels, and whether these efforts
produced savings that allowed expansion of services. Reports must be made
once every two years thereafter, and other times as the council deems necessary)). [1999 c 372 § 13; 1998 c 173 § 3.]
47.06B.030
47.06B.030 Council—Duties (as amended by 1999 c 385). (Effective
until June 30, 2008.) To assure implementation of the Program for Agency
Coordinated Transportation, the council, in coordination with stakeholders,
shall:
(1) Develop ((standards and strategies for coordinating special needs
transportation;
(2) Identify and develop, fund as resources are made available, and
monitor coordinated transportation pilot projects;
(3) Disseminate and encourage the widespread implementation of successful demonstration projects;
(4) Identify and address barriers to transportation coordination;
(5) Recommend to the legislature changes in law to assist coordination
of transportation services;
(6) Act as an information clearinghouse and advocate for coordinated
transportation;
(7))) guidelines for local planning of coordinated transportation in
accordance with this chapter;
(2) Initiate local planning processes by contacting the board of
commissioners and county councils in each county and encouraging them to
convene local planning forums for the purpose of implementing special
needs coordinated transportation programs at the community level;
(2004 Ed.)
47.06B.040
(3) Work with local community forums to designate a local lead
organization that shall cooperate and coordinate with private and nonprofit
transportation brokers and providers, local public transportation agencies,
local governments, and user groups;
(4) Provide a forum at the state level in which state agencies will discuss and resolve coordination issues and program policy issues that may
impact transportation coordination and costs;
(5) Provide guidelines for state agencies to use in creating policies,
rules, or procedures to encourage the participation of their constituents in
community-based planning and coordination, in accordance with this chapter;
(6) Facilitate state-level discussion and action on problems and barriers
identified by the local forums that can only be resolved at either the state or
federal level;
(7) Develop and test models for determining the impacts of facility siting and program policy decisions on transportation costs;
(8) Develop methodologies and provide support to local and state agencies in identifying transportation costs;
(9) Develop guidelines for setting performance measures and evaluating performance;
(10) Develop monitoring reporting criteria and processes to assess state
and local level of participation with this chapter;
(11) Administer and manage grant funds to develop, test, and facilitate
the implementation of coordinated systems;
(12) Develop minimum standards for safety, driver training, and vehicles, and provide models for processes and technology to support coordinated service delivery systems;
(13) Provide a clearinghouse for sharing information about transportation coordination best practices and experiences;
(14) Promote research and development of methods and tools to
improve the performance of transportation coordination in the state;
(15) Provide technical assistance and support to communities;
(16) Facilitate, monitor, provide funding as available, and give technical support to local planning processes;
(17) Form, convene, and give staff support to stakeholder work groups
as needed to continue work on removing barriers to coordinated transportation;
(18) Advocate for the coordination of transportation for people with
special transportation needs at the federal, state, and local levels;
(19) Recommend to the legislature changes in laws to assist coordination of transportation services;
(20) Petition the office of financial management to make whatever
changes are deemed necessary to identify transportation costs in all executive agency budgets;
(((8))) (21) Report to the legislature by December 1, ((1998)) 2000, on
council activities including, but not limited to, the progress of community
planning processes, what demonstration projects have been undertaken, how
coordination affected service levels, and whether these efforts produced savings that allowed expansion of services. Reports must be made once every
two years thereafter, and other times as the council deems necessary. [1999
c 385 § 5; 1998 c 173 § 3.]
Reviser's note: RCW 47.06B.030 was amended twice during the 1999
legislative session, each without reference to the other. For rule of construction concerning sections amended more than once during the same legislative session, see RCW 1.12.025.
47.06B.040
47.06B.040 Local planning forums. (Effective until
June 30, 2008.) The council may request, and may require as
a condition of receiving coordination grants, selected county
governments to convene local planning forums and invite
participation of all entities, including tribal governments, that
serve or transport persons with special transportation needs.
Counties are encouraged to coordinate and combine their
forums and planning processes with other counties, as they
find it appropriate. The local community forums must:
(1) Designate a lead organization to facilitate the community planning process on an ongoing basis;
(2) Identify functional boundaries for the local coordinated transportation system;
(3) Clarify roles and responsibilities of the various participants;
[Title 47 RCW—page 29]
47.06B.900
Title 47 RCW: Public Highways and Transportation
(4) Identify community resources and needs;
(5) Prepare a plan for developing a coordinated transportation system that meets the intent of this chapter, addresses
community needs, and efficiently uses community resources
to address unmet needs;
(6) Implement the community coordinated transportation plan;
(7) Develop performance measures consistent with
council guidelines;
(8) Develop a reporting process consistent with council
guidelines;
(9) Raise issues and barriers to the council when resolution is needed at either the state or federal level;
(10) Develop a process for open discussion and input on
local policy and facility siting decisions that may have an
impact on the special needs transportation costs and service
delivery of other programs and agencies in the community.
[1999 c 385 § 6.]
47.06B.900 Council—Termination. The agency council on coordinated transportation is terminated on June 30,
2007, as provided in RCW 47.06B.901. [1999 c 385 § 7;
1998 c 173 § 6.]
47.06B.900
47.06B.901 Repealer. The following acts or parts of
acts, as now existing or hereafter amended, are each repealed,
effective June 30, 2008:
(1) RCW 47.06B.010 and 1999 c 385 § 1 & 1998 c 173
§ 1;
(2) RCW 47.06B.012 and 1999 c 385 § 2;
(3) RCW 47.06B.015 and 1999 c 385 § 3;
(4) RCW 47.06B.020 and *1999 c 385 § 4 & 1998 c 173
§ 2;
(5) RCW 47.06B.030 and 1999 c 385 § 5 & 1998 c 173
§ 3; and
(6) RCW 47.06B.040 and 1999 c 385 § 6. [1999 c 385 §
8; 1998 c 173 § 7.]
47.06B.901
*Reviser's note: 1999 c 385 § 4 was vetoed.
Chapter 47.06C RCW
PERMIT EFFICIENCY AND ACCOUNTABILITY
Chapter 47.06C
Sections
47.06C.010 Findings—Intent.
47.06C.020 Definitions.
47.06C.030 Transportation permit efficiency and accountability committee.
47.06C.040 Committee responsibilities.
47.06C.050 Pilot projects.
47.06C.060 Local government participation.
47.06C.070 Interim permit process.
47.06C.080 Department organization and administrative actions.
47.06C.090 Training and compliance.
47.06C.100 Cost reimbursement.
47.06C.900 Captions not law—2001 1st sp.s. c 2.
47.06C.901 Expiration date—2001 1st sp.s. c 2.
47.06C.902 Effective date—2001 1st sp.s. c 2.
47.06C.903 Severability—2001 1st sp.s. c 2.
47.06C.010 Findings—Intent. (Expires March 31,
2006.) The legislature finds that the public health and safety
of its citizens, the natural resources, and the environment are
vital interests of the state that need to be protected and preserved. The legislature further finds that the safety of the
47.06C.010
[Title 47 RCW—page 30]
traveling public and the state's economic well-being are vital
interests that depend upon the development of cost-effective
and efficient transportation systems planned, designed, constructed, and maintained through expedited permit decisionmaking processes.
It is the intent of the legislature to achieve transportation
permit reform that expedites the delivery of transportation
projects through a streamlined approach to environmental
permit decision making. To optimize the limited resources
available for transportation system improvements and environmental protection, state regulatory and natural resource
agencies, public and private sector interests, Indian tribes,
local and regional governments, applicable federal agencies,
and the department of transportation must work cooperatively to establish common goals, minimize project delays,
develop consistency in the application of environmental standards, maximize environmental benefits through coordinated
investment strategies, and eliminate duplicative processes
through assigned responsibilities of selected permit drafting
and compliance activities between state and federal agencies.
Therefore, the transportation permit efficiency and
accountability committee is created. The committee shall
integrate current environmental standards, but may not create
new environmental standards. The committee shall conduct
three environmental permit streamlining pilot projects and
create a process to develop general permits. Additionally, the
committee shall seek federal delegation to the state where
appropriate to streamline transportation projects. [2003 c 8 §
1; 2001 1st sp.s. c 2 § 1.]
Effective date—2003 c 8: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[March 31, 2003]." [2003 c 8 § 4.]
47.06C.020
47.06C.020 Definitions. (Expires March 31, 2006.)
The definitions in this section apply throughout this chapter
unless the context indicates otherwise.
(1) "Assigned responsibilities" means those components
of developing and implementing environmental permits,
including but not limited to, environmental review and
assessment, selected permit drafting, and selected on-site
compliance activities that may be conducted by the department.
(2) "Best available information" means the existing
sources of data, including limiting factors analyses required
under chapter 77.85 RCW that can be used to make informed
decisions regarding environmental conditions within a watershed.
(3) "Best management practices" means currently available and generally accepted techniques, including new technologies or strategies that seek to reduce the negative impacts
of transportation facilities, projects, and services on communities and the environment, and promote more efficient and
effective use of transportation facilities.
(4) "Committee" means the transportation permit efficiency and accountability committee created in RCW
47.06C.030.
(5) "Least cost planning" means the use of best available
information within a watershed basin applied to transportation decision making in the planning, permit decision making, and mitigation phases of a project.
(2004 Ed.)
Permit Efficiency and Accountability
(6) "Low-impact development project" means an activity
or series of actions that conform to a comprehensive land use
planning and engineering design approach with a goal of
maintaining or restoring existing natural habitat functions
and hydrologic regime of urban and developing watersheds.
These projects incorporate strategic watershed planning with
site-specific management techniques to reduce development
impacts to better replicate natural watershed hydrology and
water quality, while allowing for development or infrastructure rehabilitation to occur.
(7) "One-stop permit decision making" means a coordinated permit decision-making process that streamlines environmental review and permit decision making for transportation projects by providing concurrent, consolidated review by
each agency required to review the project.
(8) "Programmatic approach" means a permit or other
action that covers a geographic or statewide area and applies
to a variety of projects, activities, or locales. A programmatic
approach may allow actions to proceed without individual
approval by each permit decision-making agency.
(9) "Transportation project of statewide significance"
means a surface transportation project or combination of surface transportation projects, that crosses multiple city or
county jurisdictional boundaries or connects major state destinations in support of the state's economy and is so designated by the department of transportation and approved by
the transportation committees of the senate and house of representatives. The transportation committees of the senate and
house of representatives may also jointly designate these
projects. The pilot projects established in this chapter are
examples of transportation projects of statewide significance,
but transportation projects of statewide significance are not
limited to the pilot projects.
(10) "Watershed" means a water resource inventory area.
[2001 1st sp.s. c 2 § 2.]
47.06C.030
47.06C.030 Transportation permit efficiency and
accountability committee. (Expires March 31, 2006.) The
transportation permit efficiency and accountability committee is created.
(1) The committee consists of nine voting members,
including two members from the house of representatives,
one from each of the two largest caucuses; two senators, one
from each of the two largest caucuses; one member designated by the secretary of transportation; one member designated by the director of fish and wildlife; one member designated by the director of ecology; one member designated by
the Association of Washington Cities; and one member designated by the Washington State Association of Counties.
The committee shall elect a chair from the four legislators
appointed to the committee.
(2) The committee also includes eight nonvoting members, including one member designated by the Northwest
Indian Fisheries Commission; one member designated by the
Columbia River Intertribal Fisheries Commission; one member designated by the Consulting Engineers Council of
Washington; one member designated by the Associated General Contractors of Washington; one member designated by
the Association of Washington Business; one member designated by the Washington State Building and Construction
Trades Council; one member designated by statewide envi(2004 Ed.)
47.06C.040
ronmental organizations; and one member designated by the
State Fish and Wildlife Commission, to represent the interests of citizens engaged in fish and wildlife recovery.
(3) A representative from the department of natural
resources and representatives from federal regulatory and
transportation agencies, including the Environmental Protection Agency, National Marine Fisheries Service, United
States Army Corps of Engineers, Federal Highways Administration, and United States Fish and Wildlife Service must be
invited to participate in committee deliberations as nonvoting
members.
(4) The committee may create technical subcommittees
as needed. Technical subcommittees created for a specific
pilot project or pilot projects must include, but are not limited
to, representatives of local governments from jurisdictions
affected by those projects. Recommendations made by a
technical subcommittee must be approved by a majority of
the voting members of the committee.
(5) Nonvoting members will not be compensated but will
receive reimbursement for travel expenses in accordance
with RCW 43.03.050 and 43.03.060.
(6) The department of transportation office of environmental affairs shall provide administrative and clerical assistance to the committee.
(7) No vote of the committee may overrule existing statutes, regulations, or local ordinances. [2001 1st sp.s. c 2 § 3.]
47.06C.040
47.06C.040 Committee responsibilities. (Expires
March 31, 2006.) (1)(a) The committee and its authorized
technical subcommittees shall develop a one-stop permit
decision-making process that uses interdisciplinary review of
transportation projects of statewide significance to streamline
and expedite permit decision making. The committee shall
collaborate with appropriate agencies and parties to identify
existing environmental standards, to assess the application of
those standards, and develop an integrated permitting process
based upon environmental standards and best management
practices, which may use prescriptive or performance standards, for transportation projects of statewide significance
that can be applied with certainty, consistency, and assurance
of swift permit action, while taking into account the varying
environmental conditions throughout the state.
(b) By June 30, 2003, the committee shall develop a
detailed work plan of one-stop permitting activities for
review by the legislature. The work plan must include both a
schedule to use the one-stop permit process on all funded
transportation projects of statewide significance and any
additional resources needed to ensure that this occurs. This
work plan must include a process that enables the department
to propose permit terms and conditions for permitting agency
review and approval.
(c) The committee shall provide a status report to the legislature by December 31, 2003, and shall also identify barriers and opportunities to achieve a concurrent public review
process, concurrent public hearings, and a unified appeals
process for one-stop permitting.
(2) The committee shall give notice to the legislative
authority of each affected county and city of the projects that
are designated as transportation projects of statewide significance.
[Title 47 RCW—page 31]
47.06C.040
Title 47 RCW: Public Highways and Transportation
(3) The committee shall create a technical subcommittee
with representation at a minimum from the department of fish
and wildlife, the department of ecology, and the department
of transportation.
(a) Within six months from the first meeting of the committee, the subcommittee shall create a process to develop a
programmatic approach for transportation projects. The
committee shall review the department's construction project
list to determine which projects or activities may be included
in the programmatic approach and develop agreements with a
goal of covering seventy percent of those projects or activities with programmatic agreements. At a minimum, this process must require that decisions on minor variations to the
requirements of a programmatic approach must be provided
by the permit decision-making agencies within twenty-one
days of submittal.
(b) By June 30, 2003, the committee shall prioritize programmatic agreement opportunities identified in (a) of this
subsection, develop a detailed work plan to achieve the goals
set forth, and submit the report and plan to the legislature.
The work plan must be reviewed and updated on a quarterly
basis and submitted to the legislature twice yearly. This work
plan must include the following elements:
(i) A schedule of activities and resources needed to
achieve completion of the nine highest priority multiagency
programmatic agreements by June 30, 2004;
(ii) A prioritized list of the remaining departmental activities eligible for programmatic, multiagency consideration by
September 30, 2003;
(iii) A schedule of activities and resources to achieve
completion of the prioritized list of programmatic agreements
by December 31, 2005.
(c) The committee shall work with local governments to
identify opportunities to integrate local government requirements in the agreements or permits identified in (b) of this
subsection.
(d) The technical subcommittee's recommendations
must be approved by a majority of the voting members of the
committee.
(4) The committee shall explore the development of a
consolidated local permit process.
(5) The committee shall conduct one or more pilot
projects to implement the collaborative review process set
forth in RCW 36.70A.430 to review and coordinate state and
local permits for a transportation project funded in the transportation budget and that crosses more than one city or
county boundary.
(6) The committee shall appoint a task force of representatives from cities and counties, the department of transportation, and other agencies as appropriate to identify one or
more city or county permits for activities for which uniform
standards can be developed for application by local governments. It is the goal of the task force to develop uniform standards and best practices for these identified permits that may
be used by local governments in issuing their permits. The
task force shall identify strategies for local governments to
adapt these standards and best practices to local conditions.
The committee shall encourage local governments to use
these standards and best practices in local ordinances. The
task force shall submit a progress report to the committee and
the legislature by December 31, 2003, and shall conclude its
[Title 47 RCW—page 32]
work and report its final recommendations for review to the
committee and the legislature no later than December 31,
2004.
(7) The committee shall develop and prioritize a list of
permit streamlining opportunities, specifically identifying
substantive and procedural duplications and recommendations for resolving those duplications. The committee shall
evaluate current laws and regulations and develop recommendations on ways to minimize the lapsing of permits. The
committee shall evaluate flexible approaches that maximize
transportation and environmental interests and make recommendations regarding where those approaches should be
implemented.
(8) The committee shall undertake the following activities to develop a watershed approach to environmental mitigation:
(a) Develop methodologies for analyzing environmental
impacts and applying compensatory mitigation consistent
with a watershed-based approach before final design, including least cost methodology and low-impact development
methodology;
(b) Assess models to collate and access watershed data to
support early agency involvement in transportation planning
and reviews under the national Environmental Policy Act and
the State Environmental Policy Act;
(c) Use existing best available information from watershed planning efforts, lead entities, regional fisheries
enhancement groups, and other recognized entities as
deemed appropriate by the committee, to determine potential
mitigation requirements for projects within a watershed. Priority consideration should be given to the use of the state's
alternative mitigation policy guidance to best link transportation mitigation needs with local watershed and lead entity
project lists; and
(d) By June 30, 2003, develop a detailed work plan that
covers watershed-based mitigation activities. This work plan
must be submitted to the legislature and include the following
elements:
(i) A schedule of activities and resources needed to complete a watershed-based mitigation policy by December 31,
2003, that covers elements of permitting deemed appropriate
by the committee;
(ii) A schedule of activities and resources needed to
develop watershed-based mitigation decision-making tools
by June 30, 2004;
(iii) A schedule of activities and resources needed to
complete a test of technical and policy methods of watershedbased mitigation decision making by December 31, 2004, for
a funded project in an urbanized area of the state; and
(iv) A schedule to integrate watershed-based mitigation
policies, technical tools, and procedures for projects by June
30, 2005.
(9)(a) The committee shall seek federal delegation to the
state where appropriate to streamline permit processes for
transportation projects of statewide significance including:
Delegation of section 404 permit authority under the Clean
Water Act; nonfederal lead agency status under the federal
Endangered Species Act; section 106 cultural resource designation under the National Historic Preservation Act; and
other appropriate authority that when delegated should result
in permit streamlining.
(2004 Ed.)
Permit Efficiency and Accountability
(b) The department, the department of ecology, and the
department of fish and wildlife shall jointly review relevant
federal, state, and local environmental laws, regulations, policies, guidance, studies, and streamlining initiatives, and shall
report to the committee and the legislature by September 30,
2003, on those instances where such might allow for delegation to the department or some other duly recognized entity as
appropriate. The report must include recommendations on:
(i) How to delegate consistent with federal permit
streamlining efforts contained in new federal transportation
authorizations and under Presidential Executive Order number 13274, Environmental Stewardship and Transportation
Infrastructure Project Reviews, September 18, 2002;
(ii) How to maximize possible use of programmatic
approaches to simplify issuance of federally required permits
and project approvals;
(iii) The scope, roles, and responsibilities associated
with any such delegation, especially as relates to regulatory
standard setting, permitting, and oversight; and
(iv) A work plan and schedule of activities and resources
needed to implement the recommendations of the department, the department of ecology, and the department of fish
and wildlife on this matter.
The committee shall take action on the report, and shall
report to the legislature by December 31, 2003, and every six
months thereafter on the status of such delegation efforts.
(10) The committee shall develop a dispute resolution
process to resolve conflicts in interpretation of environmental
standards and best management practices, mitigation requirements, permit requirements, assigned responsibilities, and
other related issues by September 1, 2001. The dispute resolution process may not abrogate or supplant any appeal right
of any party under existing statutes. The dispute resolution
process must be designed to include federal agencies if they
choose to participate.
(11) The committee shall develop preliminary models
and strategies for agencies to test how best to maximize the
environmental investment of transportation funds on a watershed basis. After agencies test the models and strategies
developed by the committee, the committee shall evaluate the
models and strategies and make recommendations to the legislature.
(12) The committee shall develop a consistent methodology for the timely and predictable submittal and evaluation of
completed plans and specifications detailing project elements
that impact environmental resources as well as proposed mitigation measures during the preliminary specifications and
engineering phase of project development and submit information on the consistent methodology to the legislature.
(13) The committee shall provide a summary report to
the legislature on December 31, 2003, and every six months
thereafter that details the committee's status and performance
and its progress in implementing its master work plan. [2003
c 8 § 2; 2001 1st sp.s. c 2 § 4.]
Effective date—2003 c 8: See note following RCW 47.06C.010.
47.06C.050
47.06C.050 Pilot projects. (Expires March 31, 2006.)
(1) The committee shall select and conduct permit reform
pilot projects in three locales: (a) Urban near built-out conditions; (b) urban centers serving as crucial rural connectors;
(2004 Ed.)
47.06C.050
and (c) rural corridors critical to statewide economic productivity. The pilot projects must test the assignment of responsibilities such as selected permit drafting and selected compliance activities to the department.
(2) The committee shall commence efforts to apply
streamlining lessons learned from the streamlined permit process for the pilot projects to as many other transportation
projects of statewide significance as quickly as possible. In
reporting to the legislature, the committee may recommend
statutory or regulatory changes that would result in streamlining for future projects.
(3) The department and permitting agencies shall apply
an interim interdisciplinary permit review process for the
pilot projects as set forth in this section. This process must
provide coordinated review and approval of permit applications; provide coordinated and consolidated public hearings
where required by one or more regulatory agencies under
state law; and coordinate timelines for permit decision making.
(4) The committee shall give notice to the legislative
authority of each affected county and city of the projects the
committee has designated as pilot projects. Each county and
city notified must be offered the opportunity to participate in
the pilot projects as provided for in this chapter. The department shall provide funding assistance for participation.
(5) The committee shall develop a dispute resolution
process to resolve conflicts in interpretation of environmental
standards and best management practices, mitigation requirements, permit requirements, assigned responsibilities, the
streamlined process for pilot projects set forth in this section,
and other related issues by September 1, 2001. The dispute
resolution process may not abrogate or supplant any appeal
right of any party under existing statutes. The dispute resolution process must be designed to include federal agencies if
they choose to participate. The dispute resolution process
must be applied to the pilot projects.
(6) The streamlined process for the pilot projects must be
based on the following model:
(a) Step 1: The department and permitting agencies will
agree on coordination for environmental review under the
state and national environmental policy acts, including document preparation, public comment opportunities, and timelines.
(b) Step 2: For each project, the department will convene a meeting of all entities with permitting authority to
review:
(i) The proposed conceptual design for the project and
alternative routes, construction approaches, or mitigation
approaches;
(ii) All known reviewing entities, permit application and
approval requirements, and timelines; and
(iii) A coordinated timeline that allows all statutory
requirements to be met.
(c) Step 3: The department will draft all necessary permits to proceed with the preferred alternative using relevant
agreements with permitting agencies.
(d) Step 4: The department will provide public notice in
conformity with all applicable statutes and regulations and
allow the required time for public hearings and written comments.
[Title 47 RCW—page 33]
47.06C.060
Title 47 RCW: Public Highways and Transportation
(e) Step 5: The department may revise the draft permits
after consideration of public comments and applying all relevant agreed upon standards.
(f) Step 6: All permits will be disseminated to permitting
agencies for final review. All reviews will be completed
within forty-five days, at which time the permitting agencies
will act upon the permit and either approve the permit or
return it without approval.
(g) Step 7: If the permit is returned to the department
without approval, the permitting agencies will have one
opportunity to identify errors or omissions and any remaining
specific deficiencies or circumstances not previously
addressed by agreements between the department and agencies that must be met or addressed to be compliant with applicable law. The department may revise the permit as warranted and resubmit the permit to the permitting agency,
which will have fifteen days from receipt of the revised permit to take final action.
(h) Step 8: Disputes related to permit decisions will be
addressed by the dispute resolution process established by the
committee. [2001 1st sp.s. c 2 § 5.]
47.06C.060
47.06C.060 Local government participation. (Expires
March 31, 2006.) (1) This section establishes procedures for
city, town, and county governments to participate in the processes identified in this chapter to provide for coordinated,
multijurisdictional environmental review and permitting
decisions for pilot projects and transportation projects of
statewide significance.
(2) Each city, town, and county within whose boundaries
is located or partially located one or more projects identified
in subsection (1) of this section, shall elect whether or not to
participate in coordinated processes for environmental
review and permitting of those projects as required in this
chapter. If the city, town, or county elects to participate, it
may do so as either a participating entity or as an assigning
entity.
(a) If a city, town, or county elects to be considered as a
participating entity, the committee must then include a representative designated by the city, town, or county in the coordinated review of the project. The department shall compensate the jurisdiction for technical support required for participation in the process. The jurisdiction will also be eligible
for reimbursement for permit fees set by local ordinances and
other agreed upon costs associated with the issuance of
project permits.
(b) For the purposes of expediting the permit process, a
city, town, or county may elect to assign its permit responsibilities under chapter 39.34 RCW to the department simultaneously with its notification to the department as specified in
this section. The city, town, or county electing to assign its
responsibilities shall enter into an agreement with the department to define the local permit requirements that must be
met. Permits issued under the negotiated agreement are presumed to at least meet local environmental permit requirements. A city, town, or county choosing to use this option is
eligible for a permit fee set by local ordinances associated
with the issuance of the project permits.
(3) If the city, town, or county elects not to participate in
the coordinated processes for the pilot projects designated in
this chapter or transportation projects of statewide signifi[Title 47 RCW—page 34]
cance the department will issue the locally required permits,
when allowable. The department shall comply with all provisions of city, town, and county ordinances, and the department permit approval is presumed to at least meet the local
environmental review and permit requirements.
(4) Any city, town, or county shall notify the department
within sixty days of receipt of the committee's notification of
project designation, as to whether it elects to be considered as
a participating entity or an assigning entity, or elects not to
participate in the coordinated process provided in this chapter.
(5) The committee shall review and evaluate the process
by which local governments review and approve pilot
projects and transportation projects of statewide significance,
and shall provide recommendations to the legislature to
improve the coordination of the local process with state and
federal reviews as part of the reports required by this chapter.
(6) A city, town, or county is not liable for decisions
made by the department that result in a failure to comply with
city, town, or county ordinances except as provided in the
interlocal agreements, and the department shall defend and
answer to any actions or complaints challenging the validity
of permits issued under this section. [2001 1st sp.s. c 2 § 6.]
47.06C.070 Interim permit process. (Expires March
31, 2006.) Until integrated standards and best management
practices have been adopted by the committee, the department may use the following process for transportation
projects of statewide significance, including projects
requested by a project sponsor.
(1) Step 1: Conceptual description. The department will
identify project purposes, the approximate location or alternative locations, and the federal, state, and local agencies that
might have authority to review and approve the project or
portions of it at any such locations, and a preliminary interagency communication list identifying agencies that may be
interested in the proposed project and, where known, contact
persons in such agencies. If the department is going to proceed with step 2 or to abandon the project, it may complete
step 1 by: (a) Providing a summary of the outcome to all
agencies on the list; and (b) making the summary available to
the public.
(2) Step 2: Early involvement of other agencies. (a) At
any time after completing step 1, the department will provide
notice to all agencies on the interagency communication list
and the public. Within thirty days, or a longer time if specified by the department, each state, local, and federal agency
will be encouraged to identify:
(i) A primary contact person to coordinate future communications with the department and other interested agencies regarding the project, or indicate that it has no interest in
the project and need not remain on the project information
list;
(ii) Its role with respect to the proposed project;
(iii) Additional alternative locations the department
should consider and the roles it would expect to have with the
project at those locations;
(iv) Other agencies it believes should be added to the list
for the project; and
(v) Other information the agency requests the department to consider.
47.06C.070
(2004 Ed.)
Permit Efficiency and Accountability
(b) After all state and local agencies on the list have
responded, or at least ten days after expiration of the specified response time, the department may complete step 2 by:
(i) Proposing one or more conceptual designs for the project
at a proposed location and any alternative locations then
being considered; (ii) providing a summary of the results of
step 2, including a statement that the department considers
step 2 to be complete or complete except for specified issues
remaining to be resolved with specified agencies, to all agencies on the interagency communication list; and (iii) making
the summary available to the public.
(3) Step 3: Identify environmental reviews, permits, and
other approvals, application procedures, and decision standards. (a) At any time after completing step 2, the department
may initiate step 3 by notice to all agencies on the list and the
public. This notice may include a threshold determination on
whether an environmental impact statement (EIS) or supplemental EIS will be prepared or an environmental checklist
and request for comments on what steps should be taken to
comply with chapter 43.21C RCW, the State Environmental
Policy Act (SEPA). Within thirty days, or a longer time if
specified by the department, each state, local, and federal
agency will be encouraged to identify:
(i) The procedures under which it expects environmental
reviews of the project to occur;
(ii) All permits and other approvals it might require for
the project at each alternative location and conceptual design;
(iii) What is needed for the department to file a complete
application for each permit or other approval;
(iv) The laws, regulations, ordinances, and policies it
would administer with respect to the project at each alternative location and conceptual design; and
(v) Other information the agency requests the department to consider in deciding whether, when, where, or how to
proceed with the project.
(b) After all state and local agencies on the list have
responded, or at least ten days after expiration of the specified response time, the department may complete step 3 by:
(i) Adopting a list of all environmental reviews, permits,
and other approvals it believes are needed for the project
under each alternative being considered;
(ii) Providing all agencies on the list a copy of that list
and a summary of the other results of step 3, including a statement that the department considers step 3 to be complete or
complete except for specified issues remaining to be resolved
with specified agencies; and
(iii) Making the list and summary available to the public.
(c) The list and summary will be presumed to accurately
identify all environmental reviews, permits, and other
approvals needed for each alternative described, what is
required for applications to be considered complete, and the
standards under which applications will be reviewed and
approved, unless an aggrieved agency or person files objections within thirty days after the list and summary are distributed.
(4) Step 4: Tentative selection of preferred alternative.
(a) At any time after completing step 3, the department may
initiate step 4 by notice to all agencies on the list and the public. This notice may be accompanied by a scoping notice for
an EIS or supplemental EIS or, if available, be accompanied
by a draft EIS or supplemental EIS. It also may be accompa(2004 Ed.)
47.06C.070
nied by the department's preliminary analysis of the advantages and disadvantages of each identified alternative, or
other information that may be helpful to other interested
agencies and the public in identifying advantages and disadvantages. Within fourteen days, or a longer time if specified
by the department, each state, local, and federal agency will
be encouraged to identify:
(i) For each identified alternative, the specific features it
considers significant with respect to its role in environmental
reviews, permits, or other approvals for the project; the reasons these features are significant, and any concerns it may
have about the alternative because of potential adverse
impacts of these features on resources or social policies
within its jurisdiction;
(ii) For each feature for which it raises concerns, recommendations on how the potential adverse impacts could be
avoided, minimized, and mitigated;
(iii) For each feature for which it raises concerns, an
assessment of the relative ranking of each alternative with
respect to whether and to what extent these concerns apply;
(iv) Recommendations the agency may have as to which
alternatives should be retained or dropped from further consideration, and ways in which alternatives might be modified
or combined to address its concerns, recognizing that final
decisions can be made only through the applicable environmental review, permit, and other approval processes and the
agency making them is not bound with respect to any future
decisions it may make regarding the project;
(v) Other information the agency requests the department to consider in deciding whether, when, where, or how to
proceed with the project.
(b) After all state and local agencies on the list have
responded, or at least ten days after expiration of the specified response time, the department may complete step 4 by:
(i) Selecting a preferred alternative for purposes of all
environmental reviews, permits, and other approvals needed
for the project;
(ii) Providing all agencies on the list a description of the
preferred alternative and summary of the other results of step
4, including a statement that the department considers step 4
to be complete or complete except for specified issues
remaining to be resolved with specified agencies; and
(iii) Making the preferred alternative and summary
available to the public. The preferred alternative will be identified in all environmental reviews, permits, and other
approvals needed for the project.
(5) Step 5: Completing environmental reviews and
applications for permits and other approvals. (a) At any time
after completing step 4, the department may initiate step 5 by
notice to all agencies on the list and the public. A draft EIS or
supplemental EIS, the department's draft plans and specifications for the project, and draft applications for some or all
permits and other approvals may be provided with the notice
or when they subsequently become available. Within thirty
days, or a longer time if specified by the department, each
state, local, and federal agency will be encouraged to identify:
(i) All concerns it previously raised regarding the alternative, and other alternatives still under consideration, that
have not been resolved to its satisfaction;
[Title 47 RCW—page 35]
47.06C.080
Title 47 RCW: Public Highways and Transportation
(ii) Additional concerns it may have, particularly concerns resulting from additional information about the project
location and design, and other new information received
since the completion of step 4;
(iii) Additional environmental reviews, permits, or other
approvals needed for the preferred alternative because of
changes in laws, regulations, or policies or changes in the
project location or design since these issues were last
reviewed in step 3 or 4;
(iv) Changes in applicable requirements for complete
applications for permits or other approvals under its jurisdiction since these issues were last reviewed in step 3 or 4;
(v) Other changes in applicable laws, regulations, ordinances, or policies administered by the agency since these
issues were last reviewed in step 3 or 4;
(vi) Whether a draft application proposed by the department for a permit or other approval from the agency is complete, and if not, what additional information or other
changes are needed for it to be complete.
(b) When all state and local agencies on the list have
responded, or at least ten days after expiration of the specified response time, the department may complete step 5 by:
(i) Completing some or all environmental review processes and draft application forms for permits and other
approvals that it reasonably believes to be complete;
(ii) Providing all agencies on the interagency communication list with environmental review and application documents and a summary of the other results of step 5, including
a statement that the department considers step 5 to be complete or complete except for specified issues remaining to be
resolved with specified agencies; and
(iii) Making the completed environmental review documents and summary available to the public. The preferred
alternative will be identified in all environmental reviews,
permits, and other approvals needed for the project.
(c) However, if an interested agency or aggrieved person
files objections within fourteen days after the preferred alternative and summary are distributed, the objections will be
addressed in subsequent environmental reviews and agency
decisions regarding the project.
(6) Step 6: Completing the environmental review, permit, and other approval processes. (a) At any time after completing step 5, the department may initiate step 6 by notice to
all agencies on the list and the public and filing applications
for some or all permits and other approvals needed for the
project. Within thirty days, or a longer time if specified by the
department, each state, local, and federal agency will be
encouraged to:
(i) Acknowledge receipt of draft environmental review
documents provided to them and provide comments on them;
(ii) Acknowledge receipt of final environmental review
documents and determine that they are adequate for purposes
of their roles regarding the project or specify what additional
information or changes are needed for them to be considered
adequate;
(iii) Acknowledge receipt of each application filed with
them and determine that the application is complete or specify what additional information or changes are needed for it
to be considered complete;
(iv) Acknowledge that the applications submitted to
them will be processed under the laws, regulations, ordi[Title 47 RCW—page 36]
nances, and policies previously identified under steps 3, 4,
and 5 or specify what changes have occurred in the governing
standards that were in effect on the date a complete application was filed and thus apply to the project;
(v) Identify the significant steps necessary for the agency
to reach a final decision on applications and the estimated
time needed for each step;
(vi) Identify ways its decision-making process might be
made more efficient and effective through additional coordination with other agencies, with any recommendations for
such methods as joint solicitation and review of public comments and jointly conducting public hearings.
(b) It is recognized that step 6 may require an iterative
process with several drafts of various environmental review
documents and applications being considered and revised,
and that changes in project location or design resulting from
the permit decisions of one agency may require revising
applications or even reopening permit decisions of other
agencies. All state and local agencies are expected, and federal agencies are encouraged, to communicate and cooperate
to minimize the number of iterations required and make the
process as efficient and effective as possible. Unless significant new information is obtained, decisions made under step
6 should not be reopened except at the request of the department, and the most recent information available under steps
3, 4, and 5 should be presumed accurate until significant new
information becomes available.
(c) If all environmental reviews have not been completed
and all permits and other approvals obtained within forty-five
days after step 6 is initiated, the department, by notice to all
agencies on the list and the public, may set a deadline for
completing reviews and decisions. At any time after the deadline, the department may terminate the coordination process
of this section as to some or all of the reviews and decisions
that are still not completed. [2001 1st sp.s. c 2 § 7.]
47.06C.080 Department organization and administrative actions. (Expires March 31, 2006.) The legislature
finds that an essential component of streamlined permit decision making is the ability of the department to demonstrate
the capacity to meet environmental responsibilities. Therefore, the legislature directs that:
(1) The department may amend its operating practices
applicable to obtaining project permits when:
(a) Agreements on standards or best management practices as appropriate, are reached under RCW 47.06C.040;
(b) The committee determines that streamlining procedures and methodologies implemented for pilot projects consistent with RCW 47.06C.050 warrant broader application;
(c) The committee determines that the assignment of
responsibilities between regulating agencies and the department is appropriate for broader use.
(2) The department may develop permits for review by
permitting agencies when agreement on the standards and
best management practices covered by such permits have
been reached under RCW 47.06C.040. Regulating agencies
shall review permits based upon the agreed upon standards
and timelines developed in RCW 47.06C.040, as well as any
other applicable existing standards.
(3) Qualified environmental staff within the department
shall lead the development of all environmental documenta47.06C.080
(2004 Ed.)
Highway Funds
tion associated with department projects and permit activities
in accordance with the department's project delivery tools.
(4) The department shall conduct special prebid meetings for projects that are environmentally complex. In addition, the department shall review environmental considerations related to these projects during the preconstruction
meeting held with the contractor who is awarded the bid.
(5) Environmental staff at the department shall conduct
field inspections to ensure that project activities are performed under permit conditions. These inspectors:
(a) May issue stop work orders when compliance with
permit standards are not being met; and
(b) For this portion of their job duties, are accountable to
the director of environmental affairs of the department.
(6) Failure to comply with a stop work order may result
in civil penalties being assessed against the department and
individuals involved. Willful violation of a stop work notice
issued by the department is subject to civil penalties assessed
on the agency as well as the individuals involved. Persistent
violations by the department may result in loss of permit
drafting and program management responsibilities. [2001 1st
sp.s. c 2 § 8.]
47.06C.090
47.06C.090 Training and compliance. (Expires
March 31, 2006.) The legislature expects the department to
continue its efforts to improve training and compliance. The
department shall:
(1) Provide training in environmental procedures and
permit requirements for those responsible for project delivery
activities;
(2) Require wetland mitigation sites to be designed by a
qualified interdisciplinary team that meets training requirements developed by the department's environmental affairs
office in consultation with the department of ecology. Environmental mitigation site improvements must have oversight
by environmental staff;
(3) Develop an environmental compliance data system to
track all permit conditions;
(4) Report all noncompliance activities to applicable
agencies of jurisdiction along with a remedy plan;
(5) Fund the departments of ecology, natural resources,
and fish and wildlife, operating under their permit-granting
authority to conduct audits of the department's permit drafting and compliance activities. The department of ecology
must collate the audits in an annual report to the legislature;
(6) Seek federal funding for dedicated technical staff at
federal permit decision-making agencies and for state costs
associated with implementation of this chapter;
(7) Fund dedicated technical staff at federal permit decision-making entities, as appropriate, and the state departments of ecology, natural resources, community, trade, and
economic development, and fish and wildlife to implement
the requirements of this chapter;
(8) Fund a technical specialist at the Northwest Indian
Fisheries Commission and the Columbia River Intertribal
Fisheries Commission for the purpose of implementing this
chapter;
(9) Reimburse local jurisdictions for costs associated
with local participation on the committee and technical subcommittees. [2001 1st sp.s. c 2 § 9.]
(2004 Ed.)
47.08.020
47.06C.100 Cost reimbursement. (Expires March 31,
2006.) The committee shall negotiate a method of cost reimbursement for the costs associated with carrying out the purposes of this chapter, including prior departmental agreements with permitting agencies to cover their costs for transportation projects of statewide significance. [2001 1st sp.s. c
2 § 10.]
47.06C.100
47.06C.900 Captions not law—2001 1st sp.s. c 2.
(Expires March 31, 2006.) Captions used in this chapter are
not any part of the law. [2001 1st sp.s. c 2 § 11.]
47.06C.900
47.06C.901 Expiration date—2001 1st sp.s. c 2. This
act expires March 31, 2006. [2003 c 8 § 3; 2001 1st sp.s. c 2
§ 13.]
47.06C.901
Effective date—2003 c 8: See note following RCW 47.06C.010.
47.06C.902 Effective date—2001 1st sp.s. c 2. This act
is necessary for the immediate preservation of the public
peace, health, or safety, or support of the state government
and its existing public institutions, and takes effect immediately [May 29, 2001]. [2001 1st sp.s. c 2 § 14.]
47.06C.902
47.06C.903 Severability—2001 1st sp.s. c 2. If any
provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances
is not affected. [2001 1st sp.s. c 2 § 15.]
47.06C.903
Chapter 47.08
Chapter 47.08 RCW
HIGHWAY FUNDS
Sections
47.08.010
47.08.020
47.08.040
47.08.050
47.08.060
47.08.070
47.08.080
47.08.090
47.08.100
47.08.110
47.08.120
47.08.121
47.08.130
Control of allocated funds.
State to match federal funds.
Contracts with United States as to state highway property.
Contracts with United States—Governor to execute instrument to the United States.
Contracts with United States—Disposal of funds from the
United States.
Cooperation in public works projects, urban public transportation systems.
Funds when department is in charge of county road improvements.
Funds when department is in charge of city street improvements.
Illegal use of county or city road funds—Procedure to correct.
Misuse of county or city road funds—General penalty.
Transportation equipment fund.
Transportation equipment fund declared revolving fund of
proprietary nature—Use.
Custody of federal funds—Disbursement.
Highway funds, constitutional limitations: State Constitution Art. 2 § 40
(Amendment 18).
47.08.010 Control of allocated funds. Whenever there
is provided an allocation for the construction or improvement
of state highways, the allocation shall be under the sole
charge and direct control of the department. [1984 c 7 § 92;
1961 c 13 § 47.08.010. Prior: 1937 c 53 § 32, part; RRS §
6400-32, part.]
47.08.010
Severability—1984 c 7: See note following RCW 47.01.141.
47.08.020
47.08.020 State to match federal funds. For the construction, alteration, repair and improvement of state high[Title 47 RCW—page 37]
47.08.040
Title 47 RCW: Public Highways and Transportation
ways, county roads, or city and town streets in the state of
Washington which are part of the public highway system, the
good faith of the state of Washington is hereby pledged to
make available funds sufficient to equal the sums appropriated to the state by or under the United States government
during succeeding fiscal years and to use and expend the
same within one year after the fiscal year for which appropriated, and in the manner and under the rules and regulations
imposed by the secretary of commerce and to maintain, or
cause to be maintained, the highways or roads constructed or
improved with the aid of funds so appropriated, and to make
adequate provisions for carrying out such maintenance.
[1961 c 13 § 47.08.020. Prior: 1937 c 53 § 46; RRS § 640046; 1917 c 76 § 3; RRS § 6846.]
47.08.040
47.08.040 Contracts with United States as to state
highway property. Whenever it is necessary or desirable for
the federal government or any agency thereof to acquire an
interest in or in any way damage any property or interest
therein owned by the state of Washington and used in connection with any highway in the state of Washington in connection with any federal project for the development of any
river within or partially within the state of Washington, the
department is authorized, empowered, and directed to negotiate and enter into an agreement with the proper agency of the
federal government as to the rights which shall be acquired,
the compensation which shall be made therefor and the character of instruments by which the rights shall be conveyed,
and as to any other matters which may be necessary in order
to satisfy the requirements of the federal government. If the
agreement is required to be reduced to writing, the writing
shall be approved as to form by the attorney general of the
state of Washington. [1984 c 7 § 93; 1961 c 13 § 47.08.040.
Prior: 1937 c 113 § 1; RRS § 6450-91.]
Severability—1984 c 7: See note following RCW 47.01.141.
highway purposes only. [1967 ex.s. c 145 § 45; 1961 c 13 §
47.08.060. Prior: 1937 c 113 § 3; RRS § 6450-93.]
47.08.070
47.08.070 Cooperation in public works projects,
urban public transportation systems. When it appears to
the department that any state highway will be benefited or
improved by the construction of any public works project,
including any urban public transportation system, within the
state of Washington by any of the departments of the state of
Washington, by the federal government, or by any agency,
instrumentality, or municipal corporation of either the state of
Washington or the United States, the department is authorized to enter into cooperative agreements with any such state
department, with the United States, or with any agency,
instrumentality, or municipal corporation of either the state of
Washington or the United States, wherein the state of Washington, acting through the department, will participate in the
cost of the public works project in such amount as may be
determined by the department to be the value of the benefits
or improvements to the particular state highway derived from
the construction of the public works project. Under any such
agreement the department may contribute to the cost of the
public works project by making direct payment to the particular state department, federal government, or to any agency,
instrumentality, or municipal corporation of either the state or
the United States, or any combination thereof, which may be
involved in the project, from any funds appropriated to the
department and available for highway purposes, or by doing
a portion of the project either by day labor or by contract, or
in any other manner as may be deemed advisable and necessary by the department. [1984 c 7 § 95; 1967 c 108 § 3; 1961
c 13 § 47.08.070. Prior: 1945 c 127 § 2; Rem. Supp. 1945 §
6400-121.]
Severability—1984 c 7: See note following RCW 47.01.141.
Urban public transportation system defined: RCW 47.04.082.
47.08.050
47.08.050 Contracts with United States—Governor
to execute instrument to the United States. Whenever the
department has entered into an agreement under RCW
47.08.040 with the federal government or any agency thereof
requiring the execution of any deed, flowage easement, or
instrument of any nature, to the federal government or
agency, and the instrument is approved as to form by the
attorney general of the state of Washington, the governor of
the state of Washington is authorized and directed without
further authority and in the name of the state of Washington
to execute and deliver to the proper agency of the federal
government any such instrument or instruments which shall
be, when attested by the secretary of state, binding upon the
state of Washington. [1984 c 7 § 94; 1961 c 13 § 47.08.050.
Prior: 1937 c 113 § 2; RRS § 6450-92.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.08.060
47.08.060 Contracts with United States—Disposal of
funds from the United States. Whenever any moneys shall
be realized by the state of Washington as a result of any
agreement authorized by RCW 47.08.040, the same shall be
deposited in the treasury of the state of Washington to the
credit of the motor vehicle fund, and shall be available for
[Title 47 RCW—page 38]
47.08.080
47.08.080 Funds when department is in charge of
county road improvements. If any funds become available
from the federal government or otherwise for expenditure in
conjunction with county funds for the construction, alteration, repair, or improvement of any county road and the
work is to be performed by the department, the state treasurer
shall, upon notice from the department, set aside from any
moneys in the motor vehicle fund credited to any such
county, the cost thereof, together with the cost of engineering, supervision, and other proper items, or so much of the
money in the state treasury to the credit of the county as may
be necessary for use in conjunction with funds from the federal government to accomplish the work. The work shall then
be performed by the department and paid from the money so
set aside upon vouchers approved and submitted by the
department in the same manner as payment is made for such
work on state highways: PROVIDED, That the legislative
authority of any such county shall have, by proper resolution,
filed in duplicate in the office of the department and approved
by it, determined the county road construction, alteration,
repair, or improvement to be performed in such county and
the same is found to conform in all respects to the requirements necessary for the use of such funds of the federal gov(2004 Ed.)
Highway Funds
ernment. [1984 c 7 § 96; 1973 c 106 § 22; 1961 c 13 §
47.08.080. Prior: 1937 c 187 § 59; RRS § 6450-59.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.08.090
47.08.090 Funds when department is in charge of city
street improvements. If any funds become available from
the federal government or otherwise for expenditure in conjunction with funds accruing to any incorporated city or town
for the construction, alteration, repair, or improvement of its
city streets designated as forming a part of the route of any
state highway through the incorporated city or town and the
work is to be performed by the department, the state treasurer
shall, upon notice from the department, set aside from any
moneys in the motor vehicle fund credited to the incorporated
city or town, the cost thereof or so much money in the state
treasury to the credit of the incorporated city or town as may
be necessary in conjunction with the funds from the federal
government or otherwise to accomplish the work, the cost to
be paid by the state treasurer from the money so set aside
upon vouchers approved and submitted by the department in
the same manner as payment is made for work on state highways. If any such incorporated city or town has agreed with
the state of Washington or the federal government as a condition precedent to the acquiring of federal funds for construction on any city street of the incorporated city or town designated as forming a part of the route of any state highways,
that the street will be maintained to a standard and the incorporated city or town fails to so maintain the city street, then
the department may perform the maintenance, and the state
treasurer is authorized to deduct the cost thereof from any
funds credited or to be credited to the incorporated city or
town and pay the same on vouchers approved and submitted
by the department in the same manner as payment is made for
work performed on state highways. [1984 c 7 § 97; 1973 c
106 § 23; 1961 c 13 § 47.08.090. Prior: 1937 c 187 § 65;
RRS § 6450-65.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.08.100
47.08.100 Illegal use of county or city road funds—
Procedure to correct. The department is authorized from
time to time to investigate expenditures from the county road
fund and the city street fund; and if it determines that unauthorized, illegal, or wrongful expenditures are being or have
been made from the fund it is authorized to proceed as follows: If the county road fund is involved it shall notify in
writing the county legislative authority and the county treasurer of its determination; and if the city street fund is
involved it shall notify the city council or commission and the
mayor and city treasurer of the city or town of its determination. In its determination the department is authorized to
demand of those officials that the wrongful or illegal expenditures shall be stopped, adjusted, or remedied and that restitution of any wrongful or illegal diversion or use shall be
made; and it may notify the officials that if the wrong is not
stopped, remedied, or adjusted, or restitution made to its satisfaction within a specified period fixed by it, it will direct the
withholding of further payments to the county or city from
the motor vehicle fund. The county or city shall have ten days
after the notice is given within which to correct or remedy the
(2004 Ed.)
47.08.120
wrong, or wrongful and illegal practices, to make restitution,
or to adjust the matter to the satisfaction of the department.
If no correction, remedy, adjustment, or restitution is
made within ten days to the satisfaction of the department, it
has power to request in writing that the state treasurer withhold further payments from the motor vehicle fund to the
county or city; and it is the duty of the state treasurer upon
being so notified to withhold further payments from the
motor vehicle fund to the county or city involved until the
officials are notified in writing by the department that payments may be resumed.
The department is also authorized to notify in writing the
prosecuting attorney of the county in which the violation
occurs of the facts, and it is the duty of the prosecuting attorney to file charges and to criminally prosecute any and all
persons guilty of any such violation. [1984 c 7 § 98; 1973 c
106 § 24; 1961 c 13 § 47.08.100. Prior: 1943 c 82 § 13, part;
1937 c 187 § 66, part; Rem. Supp. 1943 § 6450-66, part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.08.110
47.08.110 Misuse of county or city road funds—General penalty. It shall be unlawful and a misdemeanor, unless
the same is by this title or other law of this state declared to
be a felony or gross misdemeanor, to divert or use, or authorize, permit or participate in the diversion or use of any moneys in the county road fund or in the city street fund for any
other purpose or in any other manner than that authorized by
law. [1961 c 13 § 47.08.110. Prior: 1943 c 82 § 13, part;
1937 c 187 § 66, part; Rem. Supp. 1943 § 6450-66, part.]
47.08.120
47.08.120 Transportation equipment fund. There is
hereby created in the state treasury a state fund to be known
as the "transportation equipment fund," the same to be used
by the department of transportation as a revolving fund to be
expended for salaries, wages and operations required for the
repair, replacement, purchase and operation of equipment
and for purchase of equipment, materials and supplies to be
used as follows: (1) In the administration and operation of
this fund; and (2) in the administration, maintenance and construction of highways and transportation facilities.
The transportation equipment fund shall be credited, in
the case of equipment, with a reasonable rental assessed upon
the use of such equipment by the various state departments,
and in the case of materials and supplies, with a reasonable
charge for such materials and supplies. Such credit for rental
and charges for materials and supplies shall be charged
against the proper appropriation therefor.
Equipment may be rented and materials and supplies
may be sold out of this fund to any federal, state, county or
city political subdivision or governmental agency. The terms
and charges for such rental and the prices for such sale shall
be solely within the discretion of the department of transportation and its determination of the charge for rental or sale
price shall be considered a reasonable rental charge or a reasonable sale price. Any political subdivision or governmental
agency shall make payment for such rental or for purchase of
such materials or supplies directly to the transportation
equipment fund at the office of the department of transportation at Olympia. [1979 c 39 § 1; 1961 c 13 § 47.08.120.
[Title 47 RCW—page 39]
47.08.121
Title 47 RCW: Public Highways and Transportation
Prior: 1943 c 135 § 1; 1935 c 144 § 10; Rem. Supp. 1943 §
6600-1c.]
47.10.230
47.10.240
47.10.250
47.08.121
47.08.121 Transportation equipment fund declared
revolving fund of proprietary nature—Use. The "highway
equipment fund" as established by RCW 47.08.120 is
declared to be a revolving fund of a proprietary nature and
moneys that are or will be deposited in this fund are hereby
authorized for expenditures for the purposes provided by law.
[1961 c 13 § 47.08.121. Prior: 1959 c 326 § 3.]
47.08.130
47.08.130 Custody of federal funds—Disbursement.
The state treasurer is hereby authorized and directed to
receive and have custody of such funds and warrants drawn
by the secretary of transportation or other authorized agent of
the United States as are made available for payment by the
secretary of the treasury of the United States under the provisions of the federal aid road act approved July 11, 1916, and
all acts amendatory or supplementary thereto, disbursing the
same under such terms and conditions as may be prescribed
by the secretary of transportation or by the secretary of the
treasury or other authorized agent of the United States. The
state treasurer is further authorized and directed to pay from
the motor vehicle fund for the use of the department such
funds as may be necessary upon any project in anticipation of
reimbursement by the government of the United States.
[1984 c 7 § 99; 1961 c 13 § 47.08.130. Prior: 1937 c 53 § 45;
RRS § 6400-45; 1931 c 129 § 1; 1929 c 146 § 1; 1927 c 214
§ 1; 1925 c 4 § 1; 1923 c 41 § 1; 1921 c 89 § 1; 1919 c 56 §
1; RRS § 6850.]
Severability—1984 c 7: See note following RCW 47.01.141.
Chapter 47.10
Chapter 47.10 RCW
HIGHWAY CONSTRUCTION BONDS
Sections
FIRST PRIORITY PROJECT—1951 ACT
47.10.010
47.10.020
47.10.030
47.10.040
47.10.050
47.10.060
47.10.070
47.10.080
47.10.090
47.10.100
47.10.110
47.10.120
47.10.130
47.10.140
First priority highway projects—Declaration of.
Bond issue authorized—Use of motor vehicle fund.
Form and term of bonds.
Bonds not general obligations—Taxes pledged.
Sale of bonds.
Proceeds—Deposit and use.
Source of funds for payment of principal and interest.
Highway bond retirement fund.
Excess sums in bond retirement fund—Use.
Allocation of bonds.
Columbia Basin highway projects—Reimbursement by counties.
Columbia Basin highway projects—Limit as to amounts currently retained.
Agate Pass Bridge to become toll free—Cancellation of Agate
Pass bonds.
Appropriation from motor vehicle fund.
ADDITIONAL BONDS—1953 ACT
47.10.150
47.10.160
47.10.170
47.10.180
47.10.190
47.10.200
47.10.210
47.10.220
Declaration of necessity for additional funds.
Additional bonds—Issuance and sale authorized—Use of
motor vehicle fund.
Additional bonds—Form and term of bonds.
Additional bonds—Bonds not general obligations—Taxes
pledged.
Additional bonds—Sale of bonds.
Additional bonds—Proceeds—Deposit and use.
Additional bonds—Source of funds for payment of principal
and interest.
Additional bonds—Highway bond retirement fund.
[Title 47 RCW—page 40]
47.10.260
47.10.270
Additional bonds—Excess sums in bond retirement fund—
Use.
Additional bonds—Allocation—Primary state highway No. 1.
Additional bonds—Allocation—Primary state highway No. 2,
Snoqualmie Pass.
Additional bonds—Allocation—Columbia Basin highways.
Additional bonds—Allocation—Echo Lake route.
ADDITIONAL BONDS—1955 ACT
47.10.280
47.10.290
47.10.300
47.10.310
47.10.320
47.10.330
47.10.340
47.10.350
47.10.360
47.10.370
47.10.380
47.10.390
47.10.400
Construction in Grant, Franklin, Adams counties authorized—
Declaration of priority.
Construction in Grant, Franklin, Adams counties authorized—
Issuance and sale of bonds.
Construction in Grant, Franklin, Adams counties authorized—
Form and term of bonds.
Construction in Grant, Franklin, Adams counties authorized—
Bonds not general obligations—Taxes pledged.
Construction in Grant, Franklin, Adams counties authorized—
Sale of bonds.
Construction in Grant, Franklin, Adams counties authorized—
Bond proceeds—Deposit and use.
Construction in Grant, Franklin, Adams counties authorized—
Source of funds for payment of bond principal and interest.
Construction in Grant, Franklin, Adams counties authorized—
Highway bond retirement fund.
Construction in Grant, Franklin, Adams counties authorized—
Reimbursement by counties.
Construction in Grant, Franklin, Adams counties authorized—
Limit as to amounts currently retained from excise taxes.
Construction in Grant, Franklin, Adams counties authorized—
Excess sums in bond retirement fund—Use.
Construction in Grant, Franklin, Adams counties authorized—
Allocation of funds to each county.
Construction in Grant, Franklin, Adams counties authorized—
Appropriation from motor vehicle fund.
ADDITIONAL BONDS—1957 ACT
47.10.410
47.10.420
47.10.430
47.10.440
47.10.450
47.10.460
47.10.470
47.10.480
47.10.490
47.10.500
Echo Lake route—Declaration of necessity.
Echo Lake route—Additional bond issue authorized—Use of
motor vehicle fund.
Echo Lake route—Form and term of bonds.
Echo Lake route—Bonds not general obligations—Taxes
pledged.
Echo Lake route—Sale of bonds.
Echo Lake route—Proceeds—Deposit and use.
Echo Lake route—Source of funds for payment of principal
and interest.
Echo Lake route—Highway bond retirement fund.
Echo Lake route—Excess sums in bond retirement fund—
Use.
Echo Lake route—Appropriation from motor vehicle fund.
TACOMA-SEATTLE-EVERETT FACILITY—1957 ACT
47.10.700
47.10.702
47.10.704
47.10.706
47.10.708
47.10.710
47.10.712
47.10.714
47.10.716
47.10.718
47.10.720
47.10.722
47.10.724
Tacoma-Seattle-Everett facility—Declaration of necessity.
Tacoma-Seattle-Everett facility—To be part of federal system
as limited access—Federal standards and conditions to be
met.
Tacoma-Seattle-Everett facility—Powers and duties of highway commission—Route of project.
Tacoma-Seattle-Everett facility—Issuance and sale of bonds
authorized.
Tacoma-Seattle-Everett facility—Form and term of bonds.
Tacoma-Seattle-Everett facility—Sale of bonds.
Tacoma-Seattle-Everett facility—Proceeds from bonds—
Deposit and use.
Tacoma-Seattle-Everett facility—Bonds not general obligations—Taxes pledged.
Tacoma-Seattle-Everett facility—Source of funds for payment
of principal and interest.
Tacoma-Seattle-Everett facility—Additional security for payment of bonds—Pledge of federal funds.
Tacoma-Seattle-Everett facility—Highway bond retirement
fund.
Tacoma-Seattle-Everett facility—Excess sums in bond retirement fund—Use.
Tacoma-Seattle-Everett facility—Appropriation from motor
vehicle fund.
ADDITIONAL BONDS—1965 ACT
47.10.726
47.10.727
Construction in Grant, Franklin, Adams counties authorized—
Declaration of public interest.
Construction in Grant, Franklin, Adams counties authorized—
Issuance and sale of limited obligation bonds.
(2004 Ed.)
Highway Construction Bonds
47.10.728
47.10.729
47.10.730
47.10.731
47.10.732
47.10.733
47.10.734
47.10.735
47.10.736
47.10.737
47.10.738
Construction in Grant, Franklin, Adams counties authorized—
Form and term of bonds.
Construction in Grant, Franklin, Adams counties authorized—
Bonds not general obligations—Taxes pledged.
Construction in Grant, Franklin, Adams counties authorized—
Sale of bonds—Legal investment for state funds.
Construction in Grant, Franklin, Adams counties authorized—
Bond proceeds—Deposit and use.
Construction in Grant, Franklin, Adams counties authorized—
Source of funds for payment of bond principal and interest.
Construction in Grant, Franklin, Adams counties authorized—
Highway bond retirement fund.
Construction in Grant, Franklin, Adams counties authorized—
Repayment to state by Grant, Franklin and Adams counties
by retention of funds.
Construction in Grant, Franklin, Adams counties authorized—
Repayment, limitation as to amount of funds retained—Deficits.
Construction in Grant, Franklin, Adams counties authorized—
Sums in excess of retirement requirements—Use.
Construction in Grant, Franklin, Adams counties authorized—
Allocation of bonds to counties—Conditions upon issuance—Use of county engineering forces.
Construction in Grant, Franklin, Adams counties authorized—
Appropriation from motor vehicle fund.
ADDITIONAL BONDS—CONSTRUCTION
AND IMPROVEMENT—1967 ACT
47.10.751
47.10.752
47.10.753
47.10.754
47.10.755
47.10.756
47.10.757
47.10.758
47.10.759
47.10.760
Additional funds—Declaration of necessity.
Additional funds—Issuance and sale of limited obligation
bonds.
Additional funds—Form and term of bonds.
Additional funds—Sale of bonds—Legal investment for state
funds.
Additional funds—Bond proceeds—Deposit and use.
Additional funds—Bonds not general obligations—Taxes
pledged.
Additional funds—Source of funds for payment of bond principal and interest.
Additional funds—Highway bond retirement fund.
Additional funds—Sums in excess of retirement requirements—Use.
Additional funds—Appropriation from motor vehicle fund.
RESERVE FUNDS FOR HIGHWAY, STREET,
AND ROAD PURPOSES—1967 ACT
47.10.761
47.10.762
47.10.763
47.10.764
47.10.765
47.10.766
47.10.767
47.10.768
47.10.769
47.10.770
47.10.771
Reserve funds—Purposes.
Issuance and sale of general obligation bonds.
Bonds—Term—Terms and conditions—Signatures—Registration—Where payable—Negotiable instruments.
Bonds—Denominations—Manner and terms of sale—Legal
investment for state funds.
Bonds—Bond proceeds—Deposit and use.
Bonds—Statement describing nature of obligation—Pledge of
excise taxes.
Bonds—Designation of funds to repay bonds and interest.
Bonds—Pledge of federal aid funds.
Bonds—Repayment procedure—Bond retirement fund.
Bonds—Sums in excess of retirement requirements—Use.
Bonds—Appropriation from motor vehicle fund.
STATE HIGHWAYS IN URBAN AREAS
47.10.775
Issuance and sale of limited obligation bonds, terms, conditions, retirement, use of proceeds, etc.
COUNTY AND CITY ARTERIALS IN URBAN AREAS
47.10.777
Issuance and sale of limited obligation bonds, terms, conditions, retirement, use of proceeds, etc.
47.10.790
Issuance and sale of general obligation bonds—State route 90
improvements—Category C improvements.
Administration and amount of bond sales.
Bond proceeds—Deposit and use.
Statement of general obligation—Pledge of excise taxes.
Designation of funds to repay bonds and interest.
Repayment procedure—Bond retirement fund.
Sums in excess of retirement requirements—Use.
Bonds legal investment for state funds.
Bonds equal charge against fuel tax revenues.
Appropriation—Expenditure limited to bond sale proceeds.
Severability—1979 ex.s. c 180.
47.10.010
INTERSTATE HIGHWAY, CATEGORY A,
CATEGORY C IMPROVEMENTS—1981 ACT
47.10.801
47.10.802
47.10.803
47.10.804
47.10.805
47.10.806
47.10.807
47.10.808
47.10.809
47.10.811
Issuance and sale of general obligation bonds.
Administration and amount of bond sales.
Bond proceeds—Deposit and use.
Statement of general obligation—Pledge of excise taxes.
Designation of funds to repay bonds and interest.
Repayment procedure—Bond retirement fund.
Sums in excess of retirement requirements—Use.
Bonds legal investment for state funds.
Bonds equal charge against fuel tax revenues.
Severability—1981 c 316.
CATEGORY C IMPROVEMENTS—1993 ACT
47.10.812
47.10.813
47.10.814
47.10.815
47.10.816
47.10.817
47.10.818
Issuance and sale of general obligation bonds.
Administration and amount of sale.
Proceeds—Deposit and use.
Statement of general obligation—Pledge of excise taxes.
Designation of funds to repay bonds and interest.
Equal charge against fuel tax revenues.
Severability—1993 c 431.
INTERSTATE, OTHER HIGHWAY IMPROVEMENTS—1993 ACT
47.10.819
47.10.820
47.10.821
47.10.822
47.10.823
47.10.824
47.10.825
Issuance and sale of general obligation bonds.
Administration and amount of sale.
Proceeds—Deposit and use.
Statement of general obligation—Pledge of excise taxes.
Designation of funds to repay bonds and interest.
Equal charge against fuel tax revenues.
Severability—1993 c 432.
PUBLIC-PRIVATE TRANSPORTATION INITIATIVES—1994 ACT
47.10.834
47.10.835
47.10.836
47.10.837
47.10.838
47.10.839
47.10.841
47.10.842
Issuance and sale of general obligation bonds.
Administration and amount of sale.
Proceeds—Deposit and use.
Designation of funds to repay bonds and interest.
Statement of general obligation—Pledge of excise taxes.
Repayment procedure—Bond retirement fund.
Equal charge against motor vehicle excise tax revenues.
Severability—1994 c 183.
STATE AND LOCAL HIGHWAY IMPROVEMENTS—1998 ACT
47.10.843
47.10.844
47.10.845
47.10.846
47.10.847
47.10.848
Bond issue authorized.
Administration and amount of sale.
Proceeds—Deposit and use.
Statement of general obligation—Pledge of excise taxes.
Repayment procedure—Bond retirement fund.
Equal charge against motor vehicle and special fuels tax revenues.
2003 TRANSPORTATION PROJECTS—NICKEL ACCOUNT
47.10.861
47.10.862
47.10.863
47.10.864
47.10.865
47.10.866
Bond issue authorized.
Administration and amount of sale.
Proceeds—Deposit and use.
Statement of general obligation—Pledge of excise taxes.
Repayment procedure—Bond retirement fund.
Equal charge against motor vehicle and special fuels tax revenues.
MULTIMODAL TRANSPORTATION PROJECTS—2003 ACT
47.10.867
47.10.868
47.10.869
47.10.870
47.10.871
47.10.872
Bond issue authorized—Appropriation of proceeds.
Proceeds—Deposit and use.
Repayment procedure.
Statement of general obligation—Transfer and payment of
funds.
Additional repayment means.
Legal investment.
INTERSTATE 90 COMPLETION—1979 ACT
47.10.791
47.10.792
47.10.793
47.10.794
47.10.795
47.10.796
47.10.797
47.10.798
47.10.799
47.10.800
(2004 Ed.)
FIRST PRIORITY PROJECT—1951 ACT
47.10.010 First priority highway projects—Declaration of. Reconstruction of primary state highway No. 1 from
Oregon to British Columbia, construction of four traffic lanes
at Snoqualmie Pass, construction of an adequate highway
bridge from Pasco to Kennewick and construction of county
arterial highways and farm to market roads in Grant, Franklin
and Adams counties to coincide with the opening of lands for
47.10.010
[Title 47 RCW—page 41]
47.10.020
Title 47 RCW: Public Highways and Transportation
settlement in the Columbia Basin irrigation project, are
declared to be highway projects of the first priority. The construction of such projects is required in the interest of the
public safety and for the orderly development of the state.
The reimbursement of the motor vehicle fund for money used
to purchase Agate Pass Bridge bonds will also make possible
other war emergency or high priority highway construction.
The threat of war makes acceleration of construction a vital
necessity at this time. [1961 c 13 § 47.10.010. Prior: 1951 c
121 § 1.]
47.10.020
47.10.020 Bond issue authorized—Use of motor vehicle fund. To provide funds for accelerating construction of
these first priority projects, and to reimburse the motor vehicle fund for money expended for Agate Pass Bridge construction there shall be issued and sold limited obligation bonds of
the state of Washington in the sum of sixty-six million seven
hundred three thousand, six hundred and twenty-five dollars.
The issuance, sale and retirement of said bonds shall be under
the general supervision and control of the state finance committee. The state finance committee shall, when notified by
the Washington state highway commission, provide for the
issuance of coupon or registered bonds to be dated, issued
and sold from time to time in such amounts as may be necessary to the orderly progress of construction of the first priority projects: PROVIDED, That if funds are available in the
motor vehicle fund in an amount greater than is necessary to
pay current demands such funds may be used to finance these
first priority projects until such time as bonds are sold, as provided by law, at which time the motor vehicle fund shall be
reimbursed. [1961 c 13 § 47.10.020. Prior: 1955 c 117 § 1;
1951 c 121 § 2.]
Reviser's note: Powers, duties, and functions of highway commission
transferred to department of transportation; see RCW 47.01.031. Term
"Washington state highway commission" means department of transportation; see RCW 47.04.015.
47.10.030
47.10.030 Form and term of bonds. Each of such
bonds shall be made payable at any time not exceeding
twenty-five years from the date of its issuance, with such
reserved rights of prior redemption as the state finance committee may prescribe to be specified therein. The bonds shall
be signed by the governor and the state auditor under the seal
of the state, one of which signatures shall be made manually
and the other signature may be in printed facsimile, and any
coupons attached to such bonds shall be signed by the same
officers whose signatures thereon may be in printed facsimile. Any bonds may be registered in the name of the holder on
presentation to the state treasurer or at the fiscal agency of the
state of Washington in New York City, as to principal alone,
or as to both principal and interest under such regulations as
the state treasurer may prescribe. Such bonds shall be payable
at such places as the state finance committee may provide.
All bonds issued under authority of RCW 47.10.010 through
47.10.140 shall be fully negotiable instruments. [1961 c 13 §
47.10.030. Prior: 1951 c 121 § 3.]
47.10.040
47.10.040 Bonds not general obligations—Taxes
pledged. Bonds issued under the provisions of RCW
47.10.010 through 47.10.140 shall distinctly state that they
are not a general obligation of the state, but are payable in the
[Title 47 RCW—page 42]
manner provided in RCW 47.10.010 through 47.10.140 from
the proceeds of all state excise taxes on motor vehicle fuels
imposed by chapter 82.36 RCW and RCW 82.36.020,
82.36.230, 82.36.250, and 82.36.400, as derived from chapter
58, Laws of 1933, as amended, and as last amended by chapter 220, Laws of 1949; and *chapter 82.40 RCW and RCW
82.40.020, as derived from chapter 127, Laws of 1941, as
amended, and as last amended by chapter 220, Laws of 1949.
The proceeds of such excise taxes are hereby pledged to the
payment of any bonds and the interest thereon issued under
the provisions of RCW 47.10.010 through 47.10.140, and the
legislature hereby agrees to continue to impose the same
excise taxes on motor vehicle fuels in amounts sufficient to
pay the principal and interest on all bonds issued under the
provisions of RCW 47.10.010 through 47.10.140 when due.
[1961 c 13 § 47.10.040. Prior: 1951 c 121 § 4.]
*Reviser's note: Chapter 82.40 RCW and RCW 82.40.020 were
repealed by 1971 ex.s. c 175 § 33; for later enactment see chapter 82.38
RCW.
47.10.050
47.10.050 Sale of bonds. The bonds issued hereunder
shall be in denominations to be prescribed by the state
finance committee and may be sold in such manner and in
such amounts and at such times and on such terms and conditions as the committee may prescribe. If bonds are sold to any
purchaser other than the state of Washington, they shall be
sold at public sale, and it shall be the duty of the state finance
committee to cause such sale to be advertised in such manner
as it shall deem sufficient. Bonds issued under the provisions
of RCW 47.10.010 through 47.10.140 shall be legal investment for any of the funds of the state, except the permanent
school fund: PROVIDED, That bonds authorized herein to
reimburse the motor vehicle fund for the cost of the Agate
Pass Bridge construction shall be sold at the earliest date
which the committee finds feasible. [1961 c 13 § 47.10.050.
Prior: 1951 c 121 § 5.]
47.10.060
47.10.060 Proceeds—Deposit and use. The money
arising from the sale of said bonds shall be deposited in the
state treasury to the credit of the motor vehicle fund and such
money shall be available only for the construction of such
first priority projects, reimbursement of the motor vehicle
fund for money expended for construction of the Agate Pass
Bridge in order to make such money available for war emergency highway projects or other high priority highway uses,
and payment of the expense incurred in the printing, issuance
and sale of any such bonds. [1961 c 13 § 47.10.060. Prior:
1951 c 121 § 6.]
47.10.070
47.10.070 Source of funds for payment of principal
and interest. Any funds required to repay such bonds, or the
interest thereon when due, subject to the proviso of this section, shall be taken from that portion of the motor vehicle
fund which results from the imposition of all excise taxes on
motor vehicle fuels and which is, or may be, appropriated to
the department for state highway purposes, and shall never
constitute a charge against any allocations of such funds to
counties, cities, and towns unless and until the amount of the
motor vehicle fund arising from the excise taxes on motor
vehicle fuels and available for state highway purposes proves
insufficient to meet the requirements for bond retirement or
(2004 Ed.)
Highway Construction Bonds
the interest on any bonds: PROVIDED, That money required
hereunder to pay interest on or to retire any bonds issued for
Columbia Basin county arterial highways or farm to market
roads shall be repaid by any such county or counties wherein
such highways or roads are constructed in the manner set
forth in RCW 47.10.110. [1984 c 7 § 100; 1961 c 13 §
47.10.070. Prior: 1951 c 121 § 7.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.10.080
47.10.080 Highway bond retirement fund. At least
one year prior to the date any interest is due and payable on
such bonds or before the maturity date of any bonds, the state
finance committee shall estimate, subject to the provisions of
RCW 47.10.070, the percentage of the receipts in money of
the motor vehicle fund, resulting from collection of excise
taxes on motor vehicle fuels, for each month of the year
which will be required to meet interest or bond payments
hereunder when due, and shall notify the state treasurer of
such estimated requirement. The state treasurer shall thereafter from time to time each month as such funds are paid into
the motor vehicle fund, transfer such percentage of the
monthly receipts from excise taxes on motor vehicle fuels of
the motor vehicle fund to the highway bond retirement fund,
which is hereby established, and which fund shall be available solely for payment of such interest or bonds when due. If
in any month it shall appear that the estimated percentage of
money so made is insufficient to meet the requirements for
interest or bond retirement, the treasurer shall notify the state
finance committee forthwith and such committee shall adjust
its estimates so that all requirements for interest and principal
of all bonds issued shall be fully met at all times. [1961 c 13
§ 47.10.080. Prior: 1951 c 121 § 8.]
47.10.090
47.10.090 Excess sums in bond retirement fund—
Use. Whenever the percentage of the motor vehicle fund
arising from excise taxes on motor fuels, payable into the
highway bond retirement fund, shall prove more than is
required for the payment of interest on bonds when due, or
current retirement of bonds, any excess may, in the discretion
of the state finance committee, be available for the prior
redemption of any bonds or remain available in the fund to
reduce the requirements upon the fuel excise tax portion of
the motor vehicle fund at the next interest or bond payment
period. [1961 c 13 § 47.10.090. Prior: 1951 c 121 § 11.]
47.10.100
47.10.100 Allocation of bonds. The bonds authorized
herein are allocated to the first priority projects as follows:
(1) Forty-nine million two hundred fifty thousand dollars
of the total issue for the acceleration of the reconstruction of
primary state highway No. 1, said amount to be expended on
said primary state highway No. 1 as follows: Thirty-three
million five hundred thousand dollars between Everett, Seattle, Tacoma, Olympia, Chehalis, Centralia, Kelso, Vancouver, and the Oregon boundary line, and fifteen million seven
hundred fifty thousand dollars between Everett and the Canadian boundary line;
(2) Six million five hundred thousand dollars of the total
issue for the construction of the highway bridge from Pasco
to Kennewick;
(2004 Ed.)
47.10.110
(3) Four million two hundred fifty thousand dollars of
the total issue for the construction of a four lane highway at
Snoqualmie Pass;
(4) Five million dollars of the total issue for the construction of Columbia Basin county arterial highways and farm to
market roads in Grant, Franklin and Adams counties, for
which the state must be reimbursed as provided in RCW
47.10.110; and
(5) One million seven hundred three thousand six hundred twenty-five dollars of the total issue for reimbursement
of the motor vehicle fund for money spent for Washington
toll bridge authority bonds purchased in connection with the
construction of the Agate Pass Bridge, said sum of one million seven hundred three thousand six hundred twenty-five
dollars to be used when it becomes available in the motor
vehicle fund, under allotments to be made by the director of
highways, for war emergency or other high priority highway
projects: PROVIDED, That no bonds shall be issued for
Columbia Basin county arterial highway and road purposes
unless expenditures are actually required for the settlement of
lands ready for irrigation in the Columbia Basin project and
all construction of arterial highways and roads in such counties shall be accomplished by the engineering forces of the
various counties under the supervision of the director of highways. [1961 c 13 § 47.10.100. Prior: 1951 c 121 § 12.]
Reviser's note: Powers, duties, and functions of director of highways
transferred to secretary of transportation; see RCW 47.01.031. Term "director of highways" means secretary of transportation; see RCW 47.04.015.
47.10.110
47.10.110 Columbia Basin highway projects—Reimbursement by counties. The secretary shall report separately to the state finance committee all sums expended from
funds resulting from the sale of bonds for Columbia Basin
county arterial highways and farm to market roads in Grant,
Franklin, and Adams counties under the provisions of RCW
47.10.010 through 47.10.140. Those counties shall repay to
the state all the cost of any Columbia Basin highway or road
facilities actually constructed under the provisions of RCW
47.10.010 through 47.10.140 within each of such counties as
follows: The state finance committee, at least one year prior
to the date any interest is due and payable on such bonds or
before the maturity date of any such bonds, shall ascertain the
percentage of the motor vehicle funds arising from the excise
taxes on motor vehicle fuels, which is to be transferred to
such counties under the provisions of law which will be necessary to pay all of the interest upon or retire when due all of
the portion of said bonds chargeable to expenditures incurred
under the provisions of RCW 47.10.010 through 47.10.140 in
each of said counties. The state finance committee shall
notify the state treasurer of this estimate and the treasurer
shall thereafter, when distributions are made from the motor
vehicle fund to counties, retain such percentage of the total
sums credited to such counties as aforesaid in the motor vehicle fund arising from the excise taxes on motor vehicle fuels
until such fund is fully reimbursed for all expenditures under
RCW 47.10.010 through 47.10.140 in Grant, Adams, and
Franklin counties. Any money so retained shall be available
for state highway purposes. [1984 c 7 § 101; 1961 c 13 §
47.10.110. Prior: 1951 c 121 § 9.]
Severability—1984 c 7: See note following RCW 47.01.141.
[Title 47 RCW—page 43]
47.10.120
Title 47 RCW: Public Highways and Transportation
47.10.120
47.10.120 Columbia Basin highway projects—Limit
as to amounts currently retained. The sums retained from
motor vehicle funds arising from the excise taxes on motor
vehicle fuel, of any such counties shall not exceed in any distribution period fifty percent of the total amount to be credited to such county. If there shall be a deficit in the amount
available for reimbursement of the motor vehicle fund, due to
this provision, then such deficit shall continue to be a charge
against any sums due any such county from the motor vehicle
fund from such excise taxes until the full cost of such Columbia Basin highway facilities is paid. [1961 c 13 § 47.10.120.
Prior: 1951 c 121 § 10.]
47.10.130
47.10.130 Agate Pass Bridge to become toll free—
Cancellation of Agate Pass bonds. When the state finance
committee has made arrangements for the sale of sufficient
bonds to reimburse the motor vehicle fund in the sum of one
million seven hundred three thousand six hundred twentyfive dollars as aforesaid, the committee shall notify the
Washington toll bridge authority and the authority is thereafter directed to transfer the Agate Pass Bridge to the highway
department for operation as a toll free part of the state highway system. The bonds of the authority issued to construct
the Agate Pass Bridge shall then be canceled. [1961 c 13 §
47.10.130. Prior: 1951 c 121 § 13.]
Reviser's note: Powers, duties, and functions of toll bridge authority
transferred to department of transportation; see RCW 47.01.031. Terms
"Washington state toll bridge authority" and "authority" mean department of
transportation; see RCW 47.04.015.
47.10.140
47.10.140 Appropriation from motor vehicle fund.
There is appropriated from the motor vehicle fund for the
biennium ending March 31, 1953 the sum of sixty-six million
seven hundred three thousand six hundred and twenty-five
dollars, or so much thereof as may be necessary, to carry out
the provisions of RCW 47.10.010 through 47.10.140, but no
money shall be available under this appropriation from said
fund unless a like amount of the bonds provided for herein
are sold and the money derived deposited to the credit of such
fund. [1961 c 13 § 47.10.140. Prior: 1951 c 121 § 15.]
ADDITIONAL BONDS—1953 ACT
Bend thence southwesterly by the most feasible route by the
way of Auburn to a junction with primary state highway No.
1 in the vicinity of Milton; said highway to follow approximately the route surveyed by the director of highways and
covered in the report filed by him with the 1951 legislature
commonly known as the "Echo Lake Route," as the funds
provided for herein will permit; the construction of secondary
state highways in to the Columbia Basin area is immediately
necessary to provide needed state arterial highways for the
irrigated lands of the Columbia Basin areas to market centers
and thereby encourage the full development of the basin
project. The construction of such projects is required in the
interest of the public safety and for the orderly development
of the state. The threat of war makes acceleration of construction a vital necessity at this time. [1961 c 13 § 47.10.150.
Prior: 1953 c 154 § 1.]
Reviser's note: Powers, duties, and functions of director of highways
transferred to department of transportation; see RCW 47.01.031. Term
"director of highways" means secretary of transportation; see RCW
47.04.015.
47.10.160 Additional bonds—Issuance and sale
authorized—Use of motor vehicle fund. To provide funds
for accelerating construction of these priority projects there
shall be issued and sold limited obligation bonds of the state
of Washington in the sum of eighteen million dollars. The
issuance, sale and retirement of said bonds shall be under the
general supervision and control of the state finance committee. The state finance committee shall, when notified by the
Washington state highway commission, provide for the issuance of coupon or registered bonds to be dated, issued and
sold from time to time in such amounts as may be necessary
to the orderly progress of construction of the first priority
projects: PROVIDED, That if funds are available in the
motor vehicle fund in an amount greater than is necessary to
pay current demands such funds may be used to finance these
first priority projects until such time as bonds are sold, as provided by law, at which time the motor vehicle fund shall be
reimbursed. [1961 c 13 § 47.10.160. Prior: 1955 c 117 § 2;
1953 c 154 § 2.]
47.10.160
Reviser's note: Powers, duties, and functions of highway commission
transferred to department of transportation; see RCW 47.01.031. Term
"Washington state highway commission" means department of transportation; see RCW 47.04.015.
47.10.150
47.10.150 Declaration of necessity for additional
funds. Increased construction costs for highway and bridge
construction since the enactment of a highway bond issue by
the 1951 legislature makes necessary additional money with
which to complete the sections of primary state highway No.
1 planned from funds allocated under RCW 47.10.010
through 47.10.140 and it is vital to the economy of the state
and the safety of the traffic that these sections shall be completed to relieve traffic congestions, to add capacity in event
of war, and to presently insure greater safety to highway
users; the rapid increase of traffic across Snoqualmie Pass
necessitates continued improvement of primary state highway No. 2 to provide four-lane paving contiguous to Snoqualmie Pass as the funds will permit; the rapid increase of
traffic and the facilitation of movement of military forces and
equipment from the military centers of the state makes imperative the construction of a highway from primary state highway No. 2 beginning approximately four miles west of North
[Title 47 RCW—page 44]
47.10.170 Additional bonds—Form and term of
bonds. Each of such bonds shall be made payable at any time
not exceeding twenty-five years from the date of its issuance,
with such reserved rights of prior redemption as the state
finance committee may prescribe to be specified therein. The
bonds shall be signed by the governor and the state auditor
under the seal of the state, one of which signatures shall be
made manually and the other signature may be in printed facsimile, and any coupons attached to such bonds shall be
signed by the same officers whose signatures thereon may be
in printed facsimile. Any bonds may be registered in the
name of the holder on presentation to the state treasurer or at
the fiscal agency of the state of Washington in New York
City, as to principal alone, or as to both principal and interest
under such regulations as the state treasurer may prescribe.
Such bonds shall be payable at such places as the state
finance committee may provide. All bonds issued under
47.10.170
(2004 Ed.)
Highway Construction Bonds
authority of RCW 47.10.150 through 47.10.270 shall be fully
negotiable instruments. [1961 c 13 § 47.10.170. Prior: 1953
c 154 § 3.]
47.10.180
47.10.180 Additional bonds—Bonds not general obligations—Taxes pledged. Bonds issued under the provisions
of RCW 47.10.150 through 47.10.270 shall distinctly state
that they are not a general obligation of the state, but are payable in the manner provided in RCW 47.10.150 through
47.10.270 from the proceeds of all state excise taxes on motor
vehicle fuels imposed by chapter 82.36 RCW and RCW
82.36.020, 82.36.230, 82.36.250, and 82.36.400, as derived
from chapter 58, Laws of 1933, as amended, and as last
amended by chapter 220, Laws of 1949; and *chapter 82.40
RCW and RCW 82.40.020, as derived from chapter 127,
Laws of 1941, as amended, and as last amended by chapter
220, Laws of 1949. The proceeds of such excise taxes are
hereby pledged to the payment of any bonds and the interest
thereon issued under the provisions of RCW 47.10.150
through 47.10.270 and the legislature hereby agrees to continue to impose the same excise taxes on motor vehicle fuels
in amounts sufficient to pay the principal and interest on all
bonds issued under the provisions of RCW 47.10.150
through 47.10.270 when due. [1961 c 13 § 47.10.180. Prior:
1953 c 154 § 4.]
*Reviser's note: Chapter 82.40 RCW and RCW 82.40.020, see note
following RCW 47.10.040.
47.10.190
47.10.190 Additional bonds—Sale of bonds. The
bonds issued under RCW 47.10.150 through 47.10.270 shall
be in denominations to be prescribed by the state finance
committee and may be sold in such manner and in such
amounts and at such times and on such terms and conditions
as the committee may prescribe. If bonds are sold to any purchaser other than the state of Washington, they shall be sold
at public sale, and it shall be the duty of the state finance committee to cause such sale to be advertised in such manner as it
shall deem sufficient. Bonds issued under the provisions of
RCW 47.10.150 through 47.10.270 shall be legal investment
for any of the funds of the state, except the permanent school
fund. [1961 c 13 § 47.10.190. Prior: 1953 c 154 § 5.]
47.10.200
47.10.200 Additional bonds—Proceeds—Deposit
and use. The money arising from the sale of said bonds shall
be deposited in the state treasury to the credit of the motor
vehicle fund and such money shall be available only for the
construction of such priority projects, and payment of the
expense incurred in the printing, issuance and sale of any
such bonds. [1961 c 13 § 47.10.200. Prior: 1953 c 154 § 6.]
47.10.260
and available for state highway purposes proves insufficient
to meet the requirements for bond retirement or the interest
on any bonds. [1984 c 7 § 102; 1961 c 13 § 47.10.210. Prior:
1953 c 154 § 7.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.10.220
47.10.220 Additional bonds—Highway bond retirement fund. At least one year prior to the date any interest is
due and payable on such bonds or before the maturity date of
any bonds, the state finance committee shall estimate the percentage of the receipts in money of the motor vehicle fund,
resulting from collection of excise taxes on motor vehicle
fuels, for each month of the year which will be required to
meet interest or bond payments under RCW 47.10.150
through 47.10.270 when due, and shall notify the state treasurer of such estimated requirement. The state treasurer shall
thereafter from time to time each month as such funds are
paid into the motor vehicle fund, transfer such percentage of
the monthly receipts from excise taxes on motor vehicle fuels
of the motor vehicle fund to the highway bond retirement
fund, and which fund shall be available solely for payment of
such interest or bonds when due. If in any month it shall
appear that the estimated percentage of money so made is
insufficient to meet the requirements for interest or bond
retirement, the treasurer shall notify the state finance committee forthwith and such committee shall adjust its estimate so
that all requirements for interest and principal of all bonds
issued shall be fully met at all times. [1961 c 13 § 47.10.220.
Prior: 1953 c 154 § 8.]
47.10.230
47.10.230 Additional bonds—Excess sums in bond
retirement fund—Use. Whenever the percentage of the
motor vehicle fund arising from excise taxes on motor fuels,
payable into the highway bond retirement fund, shall prove
more than is required for the payment of interest on bonds
when due, or current retirement of bonds, any excess may, in
the discretion of the state finance committee, be available for
the prior redemption of any bonds or remain available in the
fund to reduce the requirements upon the fuel excise tax portion of the motor vehicle fund at the next interest or bond payment period. [1961 c 13 § 47.10.230. Prior: 1953 c 154 § 9.]
47.10.240
47.10.240 Additional bonds—Allocation—Primary
state highway No. 1. Seven million dollars of the total issue
of the bonds authorized by RCW 47.10.150 through
47.10.270 are allocated for accelerating the completion of
four-lane construction of primary state highway No. 1. [1961
c 13 § 47.10.240. Prior: 1953 c 154 § 10.]
47.10.250
47.10.210
47.10.210 Additional bonds—Source of funds for
payment of principal and interest. Any funds required to
repay such bonds, or the interest thereon when due shall be
taken from that portion of the motor vehicle fund which
results from the imposition of all excise taxes on motor vehicle fuels and which is, or may be, appropriated to the department for state highway purposes, and shall never constitute a
charge against any allocations of such funds to counties, cities, and towns unless and until the amount of the motor vehicle fund arising from the excise taxes on motor vehicle fuels
(2004 Ed.)
47.10.250 Additional bonds—Allocation—Primary
state highway No. 2, Snoqualmie Pass. Five million dollars
of the total issue of the bonds authorized by RCW 47.10.150
through 47.10.270 are allocated for accelerating four-lane
construction of primary state highway No. 2 contiguous to
Snoqualmie Pass. [1961 c 13 § 47.10.250. Prior: 1953 c 154
§ 11.]
47.10.260
47.10.260 Additional bonds—Allocation—Columbia
Basin highways. Three million dollars of the total issue of
the bonds authorized by RCW 47.10.150 through 47.10.270
[Title 47 RCW—page 45]
47.10.270
Title 47 RCW: Public Highways and Transportation
are allocated for accelerating the construction of secondary
state highways in the Columbia Basin area. [1961 c 13 §
47.10.260. Prior: 1953 c 154 § 12.]
47.10.270
47.10.270 Additional bonds—Allocation—Echo
Lake route. Three million dollars of the total issue of the
bonds authorized by RCW 47.10.150 through 47.10.270 are
allocated insofar as said funds will permit to the construction
of a highway from primary state highway No. 2 beginning
approximately four miles west of North Bend thence southwesterly by the most feasible route by the way of Auburn to
a junction with primary state highway No. 1 in the vicinity of
Milton. [1961 c 13 § 47.10.270. Prior: 1953 c 154 § 13.]
ADDITIONAL BONDS—1955 ACT
47.10.280
47.10.280 Construction in Grant, Franklin, Adams
counties authorized—Declaration of priority. Construction of county arterial highways and farm to market roads in
Grant, Franklin and Adams counties to coincide with the
opening of lands for settlement in the Columbia Basin irrigation project, is declared to be a project of the first priority.
The construction of said project is required in the interest of
the public safety and for the orderly development of the state.
[1961 c 13 § 47.10.280. Prior: 1955 c 311 § 1.]
47.10.290
47.10.290 Construction in Grant, Franklin, Adams
counties authorized—Issuance and sale of bonds. To provide funds for construction of this first priority project, there
shall be issued and sold limited obligation bonds of the state
of Washington in the sum of four million three hundred thousand dollars.
The issuance, sale and retirement of said bonds shall be
under the general supervision and control of the state finance
committee. The state finance committee shall, when notified
by the director of highways, provide for the issuance of coupon or registered bonds to be dated, issued and sold from time
to time in such amounts as may be necessary to the orderly
progress of construction of this first priority project. [1961 c
13 § 47.10.290. Prior: 1955 c 311 § 2.]
Reviser's note: Powers, duties, and functions of director of highways
transferred to secretary of transportation; see RCW 47.01.031. Term "director of highways" means secretary of transportation; see RCW 47.04.015.
47.10.300
47.10.300 Construction in Grant, Franklin, Adams
counties authorized—Form and term of bonds. Each of
such bonds shall be made payable at any time not exceeding
twenty-five years from the date of its issuance, with such
reserved rights of prior redemption as the state finance committee may prescribe to be specified therein. The bonds shall
be signed by the governor and the state auditor under the seal
of the state, one of which signatures shall be made manually
and the other signatures may be printed facsimile. Any bonds
may be registered in the name of the holder by the same officers whose signatures thereon may be in printed facsimile.
Any bonds may be registered in the name of the holder on
presentation to the state treasurer or at the fiscal agency of the
state of Washington in New York City, as to principal alone,
or as to both principal and interest under such regulations as
the state treasurer may prescribe. Such bonds shall be payable
at such places as the state finance committee may provide.
[Title 47 RCW—page 46]
All bonds issued under authority of RCW 47.10.280 through
47.10.400 shall be fully negotiable instruments. [1961 c 13 §
47.10.300. Prior: 1955 c 311 § 3.]
47.10.310
47.10.310 Construction in Grant, Franklin, Adams
counties authorized—Bonds not general obligations—
Taxes pledged. Bonds issued under the provisions of RCW
47.10.280 through 47.10.400 shall distinctly state that they
are not a general obligation of the state, but are payable in the
manner provided in RCW 47.10.280 through 47.10.400 from
the proceeds of all state excise taxes on motor vehicle fuels
imposed by chapter 82.36 RCW, and RCW 82.36.020,
82.36.230, 82.36.250 and 82.36.400; and *chapter 82.40
RCW and RCW 82.40.020. The proceeds of such excise
taxes are pledged to the payment of any bonds and the interest thereon issued under the provisions of RCW 47.10.280
through 47.10.400. The legislature agrees to continue to
impose the same excise taxes on motor fuels in amounts sufficient to pay the principal and interest on all bonds issued
under the provisions of RCW 47.10.280 through 47.10.400
when due. [1961 c 13 § 47.10.310. Prior: 1955 c 311 § 4.]
*Reviser's note: Chapter 82.40 RCW and RCW 82.40.020, see note
following RCW 47.10.040.
47.10.320
47.10.320 Construction in Grant, Franklin, Adams
counties authorized—Sale of bonds. The bonds issued
hereunder shall be in denominations to be prescribed by the
state finance committee. They may be sold in such manner
and in such amounts and at such times and on such terms and
conditions as the committee may prescribe. If such bonds are
sold to any purchaser other than the state of Washington, they
shall be sold at public sale. It shall be the duty of the state
finance committee to cause such sale to be advertised in such
manner as it shall deem sufficient. Bonds issued under the
provisions of RCW 47.10.280 through 47.10.400 shall be
legal investment for any of the funds of the state, except the
permanent school fund. [1961 c 13 § 47.10.320. Prior: 1955
c 311 § 5.]
47.10.330
47.10.330 Construction in Grant, Franklin, Adams
counties authorized—Bond proceeds—Deposit and use.
The money arising from the sale of said bonds shall be deposited in the state treasury to the credit of the motor vehicle
fund and such money shall be available only for the construction of this first priority project, and payment of the expense
incurred in the printing, issuance and sale of any such bonds.
[1961 c 13 § 47.10.330. Prior: 1955 c 311 § 6.]
47.10.340
47.10.340 Construction in Grant, Franklin, Adams
counties authorized—Source of funds for payment of
bond principal and interest. Any funds required to repay
such bonds, or the interest thereon when due, subject to the
proviso of this section, shall be taken from that portion of the
motor vehicle fund which results from the imposition of all
excise taxes on motor vehicle fuels and which is, or may be,
appropriated to the department for state highway purposes.
They shall never constitute a charge against any allocation of
such funds to counties, cities, and towns unless and until the
amount of the motor vehicle fund arising from the excise
taxes on motor vehicle fuels and available for state highway
(2004 Ed.)
Highway Construction Bonds
purposes proves insufficient to meet the requirements for
bond retirement or the interest on any bonds: PROVIDED,
That money required hereunder to pay interest on or to retire
any bonds issued for Columbia Basin county arterial highways or farm to market roads shall be repaid by any such
county or counties wherein such highways or roads are constructed in the manner set forth in RCW 47.10.360. [1984 c
7 § 103; 1961 c 13 § 47.10.340. Prior: 1955 c 311 § 7.]
47.10.400
taxes on motor vehicle fuels until such fund is fully reimbursed for all expenditures under RCW 47.10.280 through
47.10.400 in Grant, Adams, and Franklin counties. Any
money so retained shall be available for state highway purposes. [1984 c 7 § 104; 1961 c 13 § 47.10.360. Prior: 1955 c
311 § 9.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.10.370 Construction in Grant, Franklin, Adams
counties authorized—Limit as to amounts currently
retained from excise taxes. The sums retained from motor
vehicle funds, arising from the excise taxes on motor vehicle
fuel, of any such counties shall not exceed in any distribution
period fifty percent of the total amount to be credited to such
county. If there shall be a deficit in the amount available for
reimbursement of the motor vehicle fund, due to this provision, then such deficit shall continue to be a charge against
any sums due any such county from the motor vehicle fund
from such excise taxes until the full cost of such Columbia
Basin highway facilities is paid. [1961 c 13 § 47.10.370.
Prior: 1955 c 311 § 10.]
47.10.370
Severability—1984 c 7: See note following RCW 47.01.141.
47.10.350
47.10.350 Construction in Grant, Franklin, Adams
counties authorized—Highway bond retirement fund. At
least one year prior to the date any interest is due and payable
on such bonds or before the maturity date of any bonds, the
state finance committee shall estimate, subject to the provisions of RCW 47.10.340, the percentage of receipts in money
of the motor vehicle fuels, resulting from collection of excise
taxes on motor vehicle fuels, for each month of the year
which will be required to meet interest or bond payments
hereunder when due, and shall notify the state treasurer of
such estimated requirement. The state treasurer shall thereafter from time to time each month as such funds are paid into
the motor vehicle fund, transfer such percentage of the
monthly receipts from excise taxes on motor vehicle fuels of
the motor vehicle fund to the highway bond retirement fund,
which is hereby established, and which fund shall be available solely for payment of such interest or bonds when due. If
in any month it shall appear that the estimated percentage of
money so made is insufficient to meet the requirements for
interest or bond retirement, the treasurer shall notify the state
finance committee forthwith and such committee shall adjust
its estimates so that all requirements for interest and principal
of all bonds issued shall be fully met at all times. [1961 c 13
§ 47.10.350. Prior: 1955 c 311 § 8.]
47.10.380 Construction in Grant, Franklin, Adams
counties authorized—Excess sums in bond retirement
fund—Use. Whenever the percentage of the motor vehicle
fund arising from excise taxes on motor fuels, payable into
the highway bond retirement fund, shall prove more than is
required for the payment of interest on bonds when due, or
current retirement of bonds, any excess may, in the discretion
of the state finance committee, be available for prior redemption of any bonds or remain available in the fund to reduce the
requirements upon the fuel excise tax portion of the motor
vehicle fund at the next interest or bond payment period.
[1961 c 13 § 47.10.380. Prior: 1955 c 311 § 11.]
47.10.380
47.10.390 Construction in Grant, Franklin, Adams
counties authorized—Allocation of funds to each county.
The bonds authorized herein are allocated to the counties as
follows:
(1) For Adams county—six hundred thousand dollars.
(2) For Franklin county—one million five hundred thousand dollars.
(3) For Grant county—two million two hundred thousand dollars:
PROVIDED, That no bonds shall be issued for Columbia Basin county arterial highway and road purposes unless
expenditures are actually required for the settlement of lands
ready for irrigation in the Columbia Basin project and all construction of arterial highways and roads in such counties shall
be accomplished by the engineering forces of the various
counties under the supervision of the director of highways.
[1961 c 13 § 47.10.390. Prior: 1955 c 311 § 12.]
47.10.390
47.10.360
47.10.360 Construction in Grant, Franklin, Adams
counties authorized—Reimbursement by counties. The
secretary shall report to the state finance committee all sums
expended from funds resulting from the sale of bonds for
Columbia Basin county arterial highways and farm to market
roads in Grant, Franklin, and Adams counties under the provisions of RCW 47.10.280 through 47.10.400. Those counties shall repay to the state all the cost of any Columbia Basin
highway or road facilities actually constructed under the provisions of RCW 47.10.280 through 47.10.400 within each of
those counties as follows: The state finance committee, at
least one year prior to the date any such interest is due and
payable on such bonds or before the maturity date of any such
bonds, shall ascertain the percentage of the motor vehicle
funds arising from the excise taxes on motor vehicle fuels,
which is to be transferred to such counties under the provisions of law which will be necessary to pay all of the interest
upon or retire when due all of the portion of said bonds
chargeable to expenditures incurred under the provisions of
RCW 47.10.280 through 47.10.400 in each of said counties.
The state finance committee shall notify the state treasurer of
this estimate and the treasurer shall thereafter, when distributions are made from the motor vehicle fund to counties, retain
such percentage of the total sums credited to such counties as
aforesaid in the motor vehicle fund arising from such excise
(2004 Ed.)
Reviser's note: Powers, duties, and functions of director of highways
transferred to secretary of transportation; see RCW 47.01.031. Term "director of highways" means secretary of transportation; see RCW 47.04.015.
47.10.400 Construction in Grant, Franklin, Adams
counties authorized—Appropriation from motor vehicle
fund. There is appropriated from the motor vehicle fund for
the biennium ending June 30, 1957 the sum of four million
three hundred thousand dollars, or so much thereof as may be
47.10.400
[Title 47 RCW—page 47]
47.10.410
Title 47 RCW: Public Highways and Transportation
necessary, to carry out the provisions of RCW 47.10.280
through 47.10.400, but no money shall be available under this
appropriation from said fund unless a like amount of the
bonds provided for herein are sold and the money derived
deposited to the credit of such fund. [1961 c 13 § 47.10.400.
Prior: 1955 c 311 § 13.]
ADDITIONAL BONDS—1957 ACT
47.10.410
47.10.410 Echo Lake route—Declaration of necessity. Increased costs for highway and bridge construction
since the enactment of the highway bond issues authorized by
the 1951, 1953 and 1955 legislatures makes necessary additional money with which to complete that portion of primary
state highway No. 2, beginning approximately four miles
west of North Bend thence southwesterly by the most feasible route by way of Auburn to a junction with primary state
highway No. 1 in the vicinity of Milton, commonly known as
the "Echo Lake Route." It is vital to the economy of the state
and traffic safety that this project be constructed as soon as
the funds provided herein will permit. [1961 c 13 §
47.10.410. Prior: 1957 c 206 § 1.]
47.10.420
47.10.420 Echo Lake route—Additional bond issue
authorized—Use of motor vehicle fund. To provide additional funds for the construction of the "Echo Lake Route," in
addition to bonds authorized to be sold by RCW 47.10.160
and as allocated by RCW 47.10.270, there shall be issued and
sold limited obligation bonds of the state of Washington in
the sum of three million dollars. The issuance, sale and retirement of said bonds shall be under the general supervision and
control of the state finance committee. The state finance committee shall when notified by the Washington state highway
commission, provide for the issuance of coupon or registered
bonds to be dated, issued and sold from time to time in such
amounts as may be necessary to the orderly progress of construction of this project: PROVIDED, That if funds are available in the motor vehicle fund in an amount greater than is
necessary to pay current demands, moneys appropriated to
the state highway commission for highway purposes may be
used to finance this project until such time as bonds are sold,
as provided by law, at which time the motor vehicle fund
shall be reimbursed. [1961 c 13 § 47.10.420. Prior: 1957 c
206 § 2.]
Reviser's note: Powers, duties, and functions of highway commission
transferred to department of transportation; see RCW 47.01.031. Terms
"Washington state highway commission" and "state highway commission"
mean department of transportation; see RCW 47.04.015.
holder on presentation to the state treasurer or at the fiscal
agency of the state of Washington in New York City, as to
principal alone, or as to both principal and interest under such
regulations as the state treasurer may prescribe. Such bonds
shall be payable at such places as the state finance committee
may provide. All bonds issued under authority of RCW
47.10.410 through 47.10.500 shall be fully negotiable instruments. [1961 c 13 § 47.10.430. Prior: 1957 c 206 § 3.]
47.10.440
47.10.440 Echo Lake route—Bonds not general obligations—Taxes pledged. Bonds issued under the provisions
of RCW 47.10.410 through 47.10.500 shall distinctly state
that they are not a general obligation of the state, but are payable in the manner provided in RCW 47.10.410 through
47.10.500 from the proceeds of all state excise taxes on motor
vehicle fuels imposed by chapter 82.36 RCW and RCW
82.36.020, 82.36.230, 82.36.250, and 82.36.400, as derived
from chapter 58, Laws of 1933, as amended, and as last
amended by chapter 220, Laws of 1949, and *chapter 82.40
RCW and RCW 82.40.020, as derived from chapter 127,
Laws of 1941, as amended, and as last amended by chapter
220, Laws of 1949. The proceeds of such excise taxes are
hereby pledged to the payment of any bonds and the interest
thereon issued under the provisions of RCW 47.10.410
through 47.10.500 and the legislature hereby agrees to continue to impose the same excise taxes on motor vehicle fuels
in amounts sufficient to pay the principal and interest on all
bonds issued under the provisions of RCW 47.10.410
through 47.10.500. [1961 c 13 § 47.10.440. Prior: 1957 c
206 § 4.]
*Reviser's note: Chapter 82.40 RCW and RCW 82.40.020, see note
following RCW 47.10.040.
47.10.450
47.10.450 Echo Lake route—Sale of bonds. The
bonds issued under the terms of RCW 47.10.410 through
47.10.500 shall be in denominations to be prescribed by the
state finance committee and may be sold in such manner and
in such amounts and at such times and on such terms and conditions as the committee may prescribe. If bonds are sold to
any purchaser other than the state of Washington, they shall
be sold at public sale, and it shall be the duty of the state
finance committee to cause such sale to be advertised in such
manner as it shall deem sufficient. Bonds issued under the
provisions of RCW 47.10.150 through 47.10.270 shall be
legal investment for any of the funds of the state, except the
permanent school fund. [1961 c 13 § 47.10.450. Prior: 1957
c 206 § 5.]
47.10.460
47.10.430
47.10.430 Echo Lake route—Form and term of
bonds. Each of such bonds shall be made payable at any time
not exceeding twenty-five years from the date of its issuance,
with such reserved rights of prior redemption bearing such
interest, and such terms and conditions as the state finance
committee may prescribe to be specified therein. The bonds
shall be signed by the governor and the state auditor under the
seal of the state, one of which signatures shall be made manually and the other signature may be in printed facsimile, and
any coupons attached to such bonds shall be signed by the
same officers whose signatures thereon may be in printed facsimile. Any bonds may be registered in the name of the
[Title 47 RCW—page 48]
47.10.460 Echo Lake route—Proceeds—Deposit and
use. The money arising from the sale of said bonds shall be
deposited in the state treasury to the credit of the motor vehicle fund and such money shall be available only for the construction of the project referred to in RCW 47.10.410, and
payment of the expense incurred in the printing, issuance and
sale of any such bonds. [1961 c 13 § 47.10.460. Prior: 1957
c 206 § 6.]
47.10.470
47.10.470 Echo Lake route—Source of funds for payment of principal and interest. Any funds required to repay
such bonds, or the interest thereon when due shall be taken
(2004 Ed.)
Highway Construction Bonds
from that portion of the motor vehicle fund which results
from the imposition of all excise taxes on motor vehicle fuels
and which is, or may be, appropriated to the department for
state highway purposes, and shall never constitute a charge
against any allocations of such funds to counties, cities, and
towns unless and until the amount of the motor vehicle fund
arising from the excise taxes on motor vehicle fuels and
available for state highway purposes proves insufficient to
meet the requirements for bond retirement or the interest on
any bonds. [1984 c 7 § 105; 1961 c 13 § 47.10.470. Prior:
1957 c 206 § 7.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.10.480
47.10.480 Echo Lake route—Highway bond retirement fund. At least one year prior to the date any interest is
due and payable on such bonds or before the maturity date of
any bonds, the state finance committee shall estimate the percentage of the receipts in money of the motor vehicle fund,
resulting from collection of excise taxes on motor vehicle
fuels, for each month of the year which will be required to
meet interest or bond payments under RCW 47.10.410
through 47.10.500 when due, and shall notify the state treasurer of such estimated requirement. The state treasurer shall
thereafter from time to time each month as such funds are
paid into the motor vehicle fund, transfer such percentage of
the monthly receipts from excise taxes on motor vehicle fuels
of the motor vehicle fund to the highway bond retirement
fund, and which fund shall be available solely for payment of
such interest or bonds when due. If in any month it shall
appear that the estimated percentage of money so made is
insufficient to meet the requirements for interest or bond
retirement, the treasurer shall notify the state finance committee forthwith and such committee shall adjust its estimates so
that all requirements for interest and principal of all bonds
issued shall be fully met at all times. [1961 c 13 § 47.10.480.
Prior: 1957 c 206 § 8.]
47.10.490
47.10.490 Echo Lake route—Excess sums in bond
retirement fund—Use. Whenever the percentage of the
motor vehicle fund arising from excise taxes on motor fuels,
payable into the highway bond retirement fund, shall prove
more than is required for the payment of interest on bonds
when due, or current retirement of bonds, any excess may, in
the discretion of the state finance committee, be available for
the prior redemption of any bonds or remain available in the
fund to reduce the requirements upon the fuel excise tax portion of the motor vehicle fund at the next interest or bond payment period. [1961 c 13 § 47.10.490. Prior: 1957 c 206 § 9.]
47.10.500
47.10.500 Echo Lake route—Appropriation from
motor vehicle fund. There is hereby appropriated from the
motor vehicle fund to the state highway commission for the
biennium ending June 30, 1959 the sum of three million dollars, or so much thereof as may be necessary to carry out the
provisions of RCW 47.10.410 through 47.10.500, but no
money shall be available under this appropriation from said
fund unless a like amount of bonds provided for herein are
sold and the moneys derived therefrom are deposited to the
credit of such fund. [1961 c 13 § 47.10.500. Prior: 1957 c
206 § 10.]
(2004 Ed.)
47.10.706
TACOMA-SEATTLE-EVERETT FACILITY—1957 ACT
47.10.700
47.10.700 Tacoma-Seattle-Everett facility—Declaration of necessity. Increased traffic and increased costs of
highway and bridge construction make necessary additional
moneys with which to complete the sections of primary state
highway No. 1 through and between the cities of Tacoma,
Seattle, and Everett and as an additional alternate route bypassing Seattle east of Lake Washington. It is vital to the
economy of the state and the safety of traffic that these sections shall be completed to relieve traffic congestions, to
insure greater safety to highway users, and to assure an adequate through highway to accommodate traffic from bridges
across Lake Washington as soon as possible. [1961 c 13 §
47.10.700. Prior: 1957 c 189 § 1.]
47.10.702
47.10.702 Tacoma-Seattle-Everett facility—To be
part of federal system as limited access—Federal standards and conditions to be met. This highway project shall
be constructed as a part of the federal interstate highway system as a fully controlled limited access facility and shall meet
the standards and specifications required by the state of
Washington and the secretary of commerce of the United
States in order to qualify for federal grants in aid as provided
for in the federal-aid highway act of 1956. The state shall perform all conditions precedent to payment in advance of
apportionment as provided by section 108(h) of the federalaid highway act of 1956 so as to be entitled to federal aid
funds for the project covered by RCW 47.10.700 through
47.10.724 when such funds are apportioned. [1961 c 13 §
47.10.702. Prior: 1957 c 189 § 2.]
47.10.704
47.10.704 Tacoma-Seattle-Everett facility—Powers
and duties of highway commission—Route of project. In
order to facilitate vehicular traffic through and between the
cities of Tacoma, Seattle and Everett and to remove the
present handicaps and hazards over and along primary state
highway No. 1 as presently established, the state highway
commission is authorized to realign, redesign and reconstruct
primary state highway No. 1 upon a newly located right of
way or upon portions of existing right of way through and
between the cities of Tacoma, Seattle and Everett and as an
additional alternate route bypassing Seattle east of Lake
Washington. The route of the proposed project is established
as follows: Beginning in the vicinity of Ponders Corner,
thence in a general northeasterly and northerly direction
through the cities of Tacoma and Seattle to a point in the
vicinity of the city of Everett and as an additional alternate
route bypassing Seattle east of Lake Washington. [1961 c 13
§ 47.10.704. Prior: 1957 c 189 § 3.]
Reviser's note: Powers, duties, and functions of highway commission
transferred to department of transportation; see RCW 47.01.031. Term "state
highway commission" means department of transportation; see RCW
47.04.015.
47.10.706
47.10.706 Tacoma-Seattle-Everett facility—Issuance
and sale of bonds authorized. In order to finance the immediate construction of the project referred to in RCW
47.10.700 pending receipt of federal grants in aid and in
accordance with the federal-aid highway act of 1956, there
shall be issued and sold limited obligation bonds of the state
[Title 47 RCW—page 49]
47.10.708
Title 47 RCW: Public Highways and Transportation
of Washington in the sum of forty-five million dollars or such
amount thereof and at such times as determined to be necessary by the state highway commission. No bonds shall be
issued under the provisions of RCW 47.10.700 through
47.10.724 until the congress of the United States shall
approve the estimated cost of completing the federal interstate system to be submitted to it within ten days subsequent
to January 2, 1958, as provided by section 108(d), federal-aid
highway act of 1956. The issuance, sale and retirement of
said bonds shall be under the supervision and control of the
state finance committee which, upon request being made by
the Washington state highway commission, shall provide for
the issuance, sale and retirement of coupon or registered
bonds to be dated, issued, and sold from time to time in such
amounts as may be necessary for the orderly progress of said
project. [1967 ex.s. c 7 § 1; 1961 c 13 § 47.10.706. Prior:
1957 c 189 § 4.]
Reviser's note: Powers, duties, and functions of highway commission
transferred to department of transportation; see RCW 47.01.031. Terms
"state highway commission" and "Washington state highway commission"
mean department of transportation; see RCW 47.04.015.
47.10.708
47.10.708 Tacoma-Seattle-Everett facility—Form
and term of bonds. Each of such bonds shall be made payable at any time not exceeding twenty-five years from the
date of its issuance, with such reserved rights of prior
redemption, bearing such interest, and such terms and conditions, as the state finance committee may prescribe to be
specified therein. The bonds shall be signed by the governor
and the state auditor under the seal of the state, one of which
signatures shall be made manually and the other signature
may be in printed facsimile, and any coupons attached to
such bonds shall be signed by the same officers whose signatures thereon may be in printed facsimile. Any bonds may be
registered in the name of the holder on presentation to the
state treasurer or at the fiscal agency of the state of Washington in New York City, as to principal alone, or as to both principal and interest under such regulations as the state treasurer
may prescribe. Such bonds shall be payable at such places as
the state finance committee may provide. All bonds issued
hereunder shall be fully negotiable instruments. [1961 c 13 §
47.10.708. Prior: 1957 c 189 § 5.]
47.10.710
47.10.710 Tacoma-Seattle-Everett facility—Sale of
bonds. The bonds issued hereunder shall be in denominations to be prescribed by the state finance committee and may
be sold in such manner and in such amounts and at such times
and on such terms and conditions as the committee may prescribe. If bonds are sold to any purchaser other than the state
of Washington, they shall be sold at public sale, and it shall
be the duty of the state finance committee to cause such sale
to be advertised in such manner as it shall deem sufficient.
Bonds issued under the provisions of RCW 47.10.700
through 47.10.724 shall be legal investment for any of the
funds of the state, except the permanent school fund. [1961 c
13 § 47.10.710. Prior: 1957 c 189 § 6.]
47.10.712
47.10.712 Tacoma-Seattle-Everett facility—Proceeds
from bonds—Deposit and use. The money arising from the
sale of said bonds shall be deposited in the state treasury to
the credit of the motor vehicle fund and such money shall be
[Title 47 RCW—page 50]
available only for the construction of the project referred to in
RCW 47.10.700, 47.10.702 and 47.10.704, and for payment
of the expense incurred in the drafting, printing, issuance, and
sale of any such bonds. [1961 c 13 § 47.10.712. Prior: 1957
c 189 § 7.]
47.10.714
47.10.714 Tacoma-Seattle-Everett facility—Bonds
not general obligations—Taxes pledged. Bonds issued
under the provisions of RCW 47.10.700 through 47.10.724
shall distinctly state that they are not a general obligation of
the state, but are payable in the manner provided in RCW
47.10.700 through 47.10.724 from the proceeds of state
excise taxes on motor vehicle fuels imposed by chapter 82.36
RCW and RCW 82.36.020, 82.36.230, 82.36.250 and
82.36.400, as derived from chapter 58, Laws of 1933, as
amended, and as last amended by chapter 220, Laws of 1949;
and *chapter 82.40 RCW and RCW 82.40.020, as derived
from chapter 127, Laws of 1941, as amended, and as last
amended by chapter 220, Laws of 1949. The proceeds of such
excise taxes are hereby pledged to the payment of any bonds
and the interest thereon issued under the provisions of RCW
47.10.700 through 47.10.724, and the legislature hereby
agrees to continue to impose the same excise taxes on motor
vehicle fuels in amounts sufficient to pay, when due, the principal and interest on all bonds issued under the provisions of
RCW 47.10.700 through 47.10.724. [1961 c 13 § 47.10.714.
Prior: 1957 c 189 § 8.]
*Reviser's note: Chapter 82.40 RCW and RCW 82.40.020, see note
following RCW 47.10.040.
47.10.716
47.10.716 Tacoma-Seattle-Everett facility—Source
of funds for payment of principal and interest. Any funds
required to repay such bonds, or the interest thereon when
due, subject to the proviso of this section, shall be taken from
that portion of the motor vehicle fund which results from the
imposition of excise taxes on motor vehicle fuels and which
is, or may be appropriated to the department for state highway purposes, and shall never constitute a charge against any
allocations of such funds to counties, cities, and towns unless
and until the amount of the motor vehicle fund arising from
the excise taxes on motor vehicle fuels and available for state
highway purposes proves insufficient to meet the requirements for bond retirement or interest on any such bonds.
[1984 c 7 § 106; 1961 c 13 § 47.10.716. Prior: 1957 c 189 §
9.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.10.718
47.10.718 Tacoma-Seattle-Everett facility—Additional security for payment of bonds—Pledge of federal
funds. As additional security for payment of the principal
amount of any or all of the bonds to be issued hereunder, the
state finance committee, with the consent of the department,
may pledge all or any portion of the federal aid funds
received or from time to time to be received by the state from
the United States under the provisions of the federal-aid highway act of 1956 for the construction of all or any part of the
project referred to in RCW 47.10.700, 47.10.702, and
47.10.704. [1984 c 7 § 107; 1961 c 13 § 47.10.718. Prior:
1957 c 189 § 10.]
Severability—1984 c 7: See note following RCW 47.01.141.
(2004 Ed.)
Highway Construction Bonds
47.10.720 Tacoma-Seattle-Everett facility—Highway
bond retirement fund. At least one year prior to the date
any interest is due and payable on such bonds or before the
maturity date of any bonds, the state finance committee shall
estimate, subject to the provisions of RCW 47.10.716, the
percentage of the receipts in money of the motor vehicle
fund, resulting from collection of excise taxes on motor vehicle fuels, for each month of the year which, together with federal funds which may be pledged as provided in RCW
47.10.718, shall be required to meet interest or bond payments hereunder when due, and shall notify the state treasurer
of such estimated requirement. The state treasurer shall thereafter from time to time each month as such funds are paid into
the motor vehicle fund, transfer such percentage of the
monthly receipts from excise taxes on motor vehicle fuels of
the motor vehicle fund to the bond retirement fund, which
fund shall be available solely for payment of interest or bonds
when due. If in any month it shall appear that the estimated
percentage of money so made is insufficient to meet the
requirements for interest or bond retirement, the treasurer
shall notify the state finance committee forthwith and such
committee shall adjust its estimates so that all requirements
for interest and principal of all bonds issued shall be fully met
at all times. [1961 c 13 § 47.10.720. Prior: 1957 c 189 § 11.]
47.10.720
47.10.722
47.10.722 Tacoma-Seattle-Everett facility—Excess
sums in bond retirement fund—Use. Whenever the percentage of the motor vehicle fund arising from excise taxes
on motor fuels and the federal funds which may be pledged as
provided in RCW 47.10.718, payable into the highway bond
retirement fund, shall prove more than is required for the payment of interest on bonds when due, or current retirement of
bonds, any excess may, in the discretion of the state finance
committee, be available for the prior redemption of any
bonds or remain available in the fund to reduce the requirements upon the fuel excise tax portion of the motor vehicle
fund at the next interest or bond payment period. [1961 c 13
§ 47.10.722. Prior: 1957 c 189 § 12.]
47.10.730
47.10.727
47.10.727 Construction in Grant, Franklin, Adams
counties authorized—Issuance and sale of limited obligation bonds. To provide funds for construction of this project,
there shall be issued and sold limited obligation bonds of the
state of Washington in the sum of one million eight hundred
and fifty thousand dollars.
The issuance, sale and retirement of said bonds shall be
under the general supervision and control of the state finance
committee. The state finance committee shall, when notified
by the director of highways, provide for the issuance of coupon or registered bonds to be dated, issued and sold from time
to time in such amounts as may be necessary to the orderly
progress of construction of this project. [1965 c 121 § 2.]
Reviser's note: Powers, duties, and functions of director of highways
transferred to secretary of transportation; see RCW 47.01.031. Term "director of highways" means secretary of transportation; see RCW 47.04.015.
47.10.728
47.10.728 Construction in Grant, Franklin, Adams
counties authorized—Form and term of bonds. Each of
such bonds shall be made payable at any time not exceeding
twenty-five years from the date of its issuance, with such
reserved rights of prior redemption as the state finance committee may prescribe to be specified therein. The bonds shall
be signed by the governor and the state treasurer under the
seal of the state, one of which signatures shall be made manually and the other signatures may be printed facsimile. The
coupons attached to the bonds shall be signed by the same
officers whose signatures thereon may be in printed facsimile. Any bonds may be registered in the name of the holder on
presentation to the state treasurer or at the fiscal agency of the
state of Washington in New York City, as to principal alone,
or as to both principal and interest under such regulations as
the state treasurer may prescribe. Such bonds shall be payable
at such places as the state finance committee may provide.
All bonds issued under authority of RCW 47.10.726 through
47.10.738 shall be fully negotiable instruments. [1965 c 121
§ 3.]
47.10.729
47.10.724
47.10.724 Tacoma-Seattle-Everett facility—Appropriation from motor vehicle fund. There is hereby appropriated from the motor vehicle fund to the state highway
commission for the biennium ending June 30, 1959 the sum
of forty-five million dollars, or so much thereof as may be
necessary to carry out the provisions of RCW 47.10.700
through 47.10.724, but no money shall be available under this
appropriation from said fund unless a like amount of bonds
provided for herein are sold and the money derived therefrom
deposited to the credit of such fund. [1967 ex.s. c 7 § 2; 1961
c 13 § 47.10.724. Prior: 1957 c 189 § 13.]
ADDITIONAL BONDS—1965 ACT
47.10.729 Construction in Grant, Franklin, Adams
counties authorized—Bonds not general obligations—
Taxes pledged. Bonds issued under the provisions of RCW
47.10.726 through 47.10.738 shall distinctly state that they
are not a general obligation of the state, but are payable in the
manner provided in RCW 47.10.726 through 47.10.738 from
the proceeds of all state excise taxes on motor vehicle fuels
imposed by chapter 82.36 RCW and *chapter 82.40 RCW.
The proceeds of such excise taxes are pledged to the payment
of any bonds and the interest thereon issued under the provisions of RCW 47.10.726 through 47.10.738. The legislature
agrees to continue to impose the same excise taxes on motor
fuels in amounts sufficient to pay the principal and interest on
all bonds issued under the provisions of RCW 47.10.726
through 47.10.738 when due. [1965 c 121 § 4.]
47.10.726
47.10.726 Construction in Grant, Franklin, Adams
counties authorized—Declaration of public interest. Construction of county arterial highways and farm to market
roads in Grant, Franklin and Adams counties to coincide with
the opening of additional lands for settlement in the Columbia Basin irrigation project, is declared to be a project
required in the interest of the public safety and for the orderly
development of the state. [1965 c 121 § 1.]
(2004 Ed.)
*Reviser's note: Chapter 82.40 RCW was repealed by 1971 ex.s. c 175
§ 33; for later enactment, see chapter 82.38 RCW.
47.10.730
47.10.730 Construction in Grant, Franklin, Adams
counties authorized—Sale of bonds—Legal investment
for state funds. The bonds issued hereunder shall be in
denominations to be prescribed by the state finance committee. They may be sold in such manner and in such amounts
[Title 47 RCW—page 51]
47.10.731
Title 47 RCW: Public Highways and Transportation
and at such times and on such terms and conditions as the
committee may prescribe. The bonds shall be sold at public
sale. It shall be the duty of the state finance committee to
cause such sale to be advertised in such manner as it shall
deem sufficient. Bonds issued under the provisions of RCW
47.10.726 through 47.10.738 shall be legal investment for
any of the funds of the state, except the permanent school
fund. [1965 c 121 § 5.]
percentage of money so made is insufficient to meet the
requirements for interest or bond retirement, the treasurer
shall notify the state finance committee forthwith and such
committee shall adjust its estimates so that all requirements
for interest and principal of all bonds issued shall be fully met
at all times. [1965 c 121 § 8.]
*Reviser's note: The word "fuels" appearing in the session law version
of the above section has been corrected to read "fund"; see comparable provisions in RCW 47.10.080, 47.10.220, 47.10.480, and 47.10.720.
47.10.731
47.10.731 Construction in Grant, Franklin, Adams
counties authorized—Bond proceeds—Deposit and use.
The money arising from the sale of said bonds shall be deposited in the state treasury to the credit of the motor vehicle
fund and such money shall be available only for the construction of the project authorized by RCW 47.10.726 through
47.10.738, and payment of the expense incurred in the printing, issuance and sale of any such bonds, in which expense
shall be included the sum of one eighth of one percent of the
amount of the issue to cover the cost of servicing said issue,
such sum to be deposited in the general fund. [1965 c 121 §
6.]
47.10.732
47.10.732 Construction in Grant, Franklin, Adams
counties authorized—Source of funds for payment of
bond principal and interest. Any funds required to repay
such bonds, or the interest thereon when due, subject to the
proviso of this section, shall be taken from that portion of the
motor vehicle fund which results from the imposition of all
excise taxes on motor vehicle fuels and which is, or may be,
appropriated to the department for state highway purposes.
They shall never constitute a charge against any allocation of
such funds to counties, cities, and towns unless and until the
amount of the motor vehicle fund arising from the excise
taxes on motor vehicle fuels and available for state highway
purposes proves insufficient to meet the requirements for
bond retirement or the interest on any bonds: PROVIDED,
That money required hereunder to pay interest on or to retire
any bonds issued as authorized by RCW 47.10.726 through
47.10.738 shall be repaid by the county or counties wherein
the highways or roads are constructed in the manner set forth
in RCW 47.10.734. [1984 c 7 § 108; 1965 c 121 § 7.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.10.733
47.10.733 Construction in Grant, Franklin, Adams
counties authorized—Highway bond retirement fund. At
least one year prior to the date any interest is due and payable
on such bonds or before the maturity date of any bonds, the
state finance committee shall estimate the percentage of
receipts in money of the motor vehicle *fund, resulting from
collection of excise taxes on motor vehicle fuels, for each
month of the year which will be required to meet interest or
bond payments hereunder when due, and shall notify the state
treasurer of such estimated requirement. The state treasurer
shall thereafter from time to time each month as such funds
are paid into the motor vehicle fund, transfer such percentage
of the monthly receipts from excise taxes on motor vehicle
fuels of the motor vehicle fund to the highway bond retirement fund, which is hereby established, and which fund shall
be available solely for payment of such interest or bonds
when due. If in any month it shall appear that the estimated
[Title 47 RCW—page 52]
47.10.734 Construction in Grant, Franklin, Adams
counties authorized—Repayment to state by Grant,
Franklin and Adams counties by retention of funds. The
secretary shall report to the state finance committee all sums
expended from funds resulting from the sale of bonds authorized by RCW 47.10.726 through 47.10.738. Grant, Franklin,
and Adams counties shall repay to the state all the cost of
highway or road facilities actually constructed under the provisions of RCW 47.10.726 through 47.10.738 within each of
said counties as follows: The state finance committee, at
least one year prior to the date any such interest is due and
payable on such bonds or before the maturity date of any such
bonds, shall ascertain the percentage of the motor vehicle
funds arising from the excise taxes on motor vehicle fuels,
which is to be transferred to such counties under the provisions of law which will be necessary to pay all of the interest
upon or retire when due all of the portion of said bonds sold
under the provisions of RCW 47.10.726 through 47.10.738 in
each of said counties. The state finance committee shall
notify the state treasurer of this estimate and the treasurer
shall thereafter, when distributions are made from the motor
vehicle fund to counties, retain such percentage of the total
sums credited to such counties as aforesaid in the motor vehicle fund arising from such excise taxes on motor vehicle fuels
until such fund is fully reimbursed for all expenditures under
RCW 47.10.726 through 47.10.738 in Grant, Adams, and
Franklin counties. Any money so retained shall be available
for state highway purposes. [1984 c 7 § 109; 1965 c 121 § 9.]
47.10.734
Severability—1984 c 7: See note following RCW 47.01.141.
47.10.735
47.10.735 Construction in Grant, Franklin, Adams
counties authorized—Repayment, limitation as to
amount of funds retained—Deficits. The sums retained
from motor vehicle funds, arising from the excise taxes on
motor vehicle fuel, of any such counties as provided in RCW
47.10.734, together with the sums similarly retained under
the provisions of RCW 47.10.010 through 47.10.140 and
RCW 47.10.280 through 47.10.400 shall not exceed in any
distribution period fifty percent of the total amount to be
credited to such county. If there shall be a deficit in the
amount available for reimbursement of the motor vehicle
fund, due to this provision, then such deficit shall continue to
be a charge against any sums due any such county from the
motor vehicle fund from such excise taxes until the full cost
of such highway facilities is paid. [1965 c 121 § 10.]
47.10.736
47.10.736 Construction in Grant, Franklin, Adams
counties authorized—Sums in excess of retirement
requirements—Use. Whenever the percentages of the
motor vehicle fund arising from excise taxes on motor fuels,
payable into the highway bond retirement fund, shall prove
(2004 Ed.)
Highway Construction Bonds
more than is required for the payment of interest on bonds
when due, or current retirement of bonds, any excess may, in
the discretion of the state finance committee, be available for
prior redemption of any bonds or remain available in the fund
to reduce the requirements upon the fuel excise tax portion of
the motor vehicle fund at the next interest or bond payment
period. [1965 c 121 § 11.]
47.10.737
47.10.737 Construction in Grant, Franklin, Adams
counties authorized—Allocation of bonds to counties—
Conditions upon issuance—Use of county engineering
forces. The bonds authorized herein are allocated to the
counties as follows:
(1) For Adams county—one hundred thousand dollars.
(2) For Franklin county—four hundred fifty thousand
dollars.
(3) For Grant county—one million three hundred thousand dollars:
PROVIDED, That no bonds shall be issued for Columbia Basin county arterial highway and road purposes unless
expenditures are actually required for the settlement of lands
ready for irrigation in the Columbia Basin project and all construction of arterial highways and roads in such counties shall
be accomplished by the engineering forces of the various
counties under the supervision of the director of highways.
[1965 c 121 § 12.]
Reviser's note: Powers, duties, and functions of director of highways
transferred to secretary of transportation; see RCW 47.01.031. Term "director of highways" means secretary of transportation; see RCW 47.04.015.
47.10.738
47.10.738 Construction in Grant, Franklin, Adams
counties authorized—Appropriation from motor vehicle
fund. There is appropriated from the motor vehicle fund for
the biennium ending June 30, 1967 the sum of one million
eight hundred fifty thousand dollars, or so much thereof as
may be necessary, to carry out the provisions of RCW
47.10.726 through 47.10.738. [1965 c 121 § 13.]
ADDITIONAL BONDS—CONSTRUCTION AND
IMPROVEMENT—1967 ACT
47.10.751 Additional funds—Declaration of necessity. Increased costs of construction combined with an
unprecedented increase in motor vehicle use in this state have
created an urgent demand for additional highway construction funds. It is vital to the economy of this state and the
safety of the public that additional funds be provided for the
construction of state highways. [1967 ex.s. c 7 § 3.]
47.10.751
47.10.752
47.10.752 Additional funds—Issuance and sale of
limited obligation bonds. In order to provide funds for the
construction and improvement of state highways, there shall
be issued and sold limited obligation bonds of the state of
Washington in the sum of thirty million dollars or such
amount thereof and at such times as determined to be necessary by the state highway commission. The issuance, sale and
retirement of said bonds shall be under the supervision and
control of the state finance committee which, upon request
being made by the state highway commission, shall provide
for the issuance, sale and retirement of coupon or registered
bonds to be dated, issued, and sold from time to time in such
(2004 Ed.)
47.10.756
amounts as shall be requested by the state highway commission. [1967 ex.s. c 7 § 4.]
Reviser's note: Powers, duties, and functions of highway commission
transferred to department of transportation; see RCW 47.01.031. Term "state
highway commission" means department of transportation; see RCW
47.04.015.
47.10.753
47.10.753 Additional funds—Form and term of
bonds. Each of such bonds shall be made payable at any time
not exceeding twenty-five years from the date of its issuance,
with such reserved rights of prior redemption, bearing such
interest, and such terms and conditions, as the state finance
committee may prescribe to be specified therein. The bonds
shall be signed by the governor and the state treasurer under
the seal of the state, one of which signatures shall be made
manually and the other signature may be in printed facsimile,
and any coupons attached to such bonds shall be signed by
the same officers whose signatures thereon may be in printed
facsimile. Any bonds may be registered in the name of the
holder on presentation to the state treasurer or at the fiscal
agency of the state of Washington in New York City, as to
principal alone, or as to both principal and interest under such
regulations as the state treasurer may prescribe. Such bonds
shall be payable at such places as the state finance committee
may provide. All bonds issued hereunder shall be fully negotiable instruments. [1967 ex.s. c 7 § 5.]
47.10.754
47.10.754 Additional funds—Sale of bonds—Legal
investment for state funds. The bonds issued hereunder
shall be in denominations to be prescribed by the state
finance committee and may be sold in such manner and in
such amounts and at such times and on such terms and conditions as the committee may prescribe. If the bonds are sold to
any purchaser other than the state of Washington, they shall
be sold at public sale, and it shall be the duty of the state
finance committee to cause such sale to be advertised in such
manner as it shall deem sufficient. Bonds issued under the
provisions of RCW 47.10.751 through 47.10.760 shall be
legal investment for any of the funds of the state, except the
permanent school fund. [1967 ex.s. c 7 § 6.]
47.10.755
47.10.755 Additional funds—Bond proceeds—
Deposit and use. The money arising from the sale of said
bonds shall be deposited in the state treasury to the credit of
the motor vehicle fund and such money shall be available
only for the construction of state highways and for payment
of the expenses incurred in the printing, issuance, and sale of
any such bonds. [1967 ex.s. c 7 § 7.]
47.10.756
47.10.756 Additional funds—Bonds not general obligations—Taxes pledged. Bonds issued under the provisions
of RCW 47.10.751 through 47.10.760 shall distinctly state
that they are not a general obligation of the state, but are payable in the manner provided in RCW 47.10.751 through
47.10.760 from the proceeds of state excise taxes on motor
vehicle fuels imposed by chapter 82.36 RCW and *chapter
82.40 RCW. The proceeds of such excise taxes are hereby
pledged to the payment of any bonds and the interest thereon
issued under the provisions of RCW 47.10.751 through
47.10.760, and the legislature hereby agrees to continue to
impose the same excise taxes on motor vehicle fuels in
[Title 47 RCW—page 53]
47.10.757
Title 47 RCW: Public Highways and Transportation
amounts sufficient to pay, when due, the principal and interest on all bonds issued under the provisions of RCW
47.10.751 through 47.10.760. [1967 ex.s. c 7 § 8.]
*Reviser's note: Chapter 82.40 RCW, see note following RCW
47.10.729.
47.10.757
47.10.757 Additional funds—Source of funds for
payment of bond principal and interest. Any funds
required to repay such bonds, or the interest thereon when
due, subject to the proviso of this section, shall be taken from
that portion of the motor vehicle fund which results from the
imposition of excise taxes on motor vehicle fuels and which
is or may be appropriated to the department for state highway
purposes, and shall never constitute a charge against any allocations of any other such funds to the state, counties, cities,
and towns unless and until the amount of the motor vehicle
fund arising from the excise taxes on motor vehicle fuels and
available to the state for construction of state highways
proves insufficient to meet the requirements for bond retirement or interest on any such bonds. [1984 c 7 § 110; 1967
ex.s. c 7 § 9.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.10.758
47.10.758 Additional funds—Highway bond retirement fund. At least one year prior to the date any interest is
due and payable on such bonds or before the maturity date of
any such bonds, the state finance committee shall estimate,
subject to the provisions of RCW 47.10.757, the percentage
of the receipts in money of the motor vehicle fund, resulting
from collection of excise taxes on motor vehicle fuels, for
each month of the year which shall be required to meet interest or bond payments hereunder when due, and shall notify
the state treasurer of such estimated requirement. The state
treasurer shall thereafter from time to time each month as
such funds are paid into the motor vehicle fund, transfer such
percentage of the monthly receipts from excise taxes on
motor vehicle fuels of the motor vehicle fund to the bond
retirement fund, hereby created, which fund shall be available solely for payment of interest or bonds when due. If in
any month it shall appear that the estimated percentage of
money so made is insufficient to meet the requirements for
interest or bond retirement, the treasurer shall notify the state
finance committee forthwith and such committee shall adjust
its estimates so that all requirements for interest and principal
of all bonds issued shall be fully met at all times. [1967 ex.s.
c 7 § 10.]
47.10.759
47.10.759 Additional funds—Sums in excess of
retirement requirements—Use. Whenever the percentage
of the motor vehicle fund arising from excise taxes on motor
vehicle fuels payable into the bond retirement fund, shall
prove more than is required for the payment of interest on
bonds when due, or current retirement of bonds, any excess
may, in the discretion of the state finance committee, be
available for the prior redemption of any bonds or remain
available in the fund to reduce the requirements upon the fuel
excise tax portion of the motor vehicle fund at the next interest or bond payment period. [1967 ex.s. c 7 § 11.]
[Title 47 RCW—page 54]
47.10.760 Additional funds—Appropriation from
motor vehicle fund. There is hereby appropriated from the
motor vehicle fund to the state highway commission for the
biennium ending June 30, 1969, the sum of thirty million dollars, or so much thereof as may be necessary to carry out the
provisions of RCW 47.10.751 through 47.10.760. [1967
ex.s. c 7 § 12.]
47.10.760
RESERVE FUNDS FOR HIGHWAY, STREET, AND
ROAD PURPOSES—1967 ACT
47.10.761 Reserve funds—Purposes. It is the purpose
of RCW 47.10.761 through 47.10.771 to provide reserve
funds to the department for the following purposes:
(1) For construction, reconstruction, or repair of any
state highway made necessary by slides, storm damage, or
other unexpected or unusual causes;
(2) For construction or improvement of any state highway when necessary to alleviate or prevent intolerable traffic
congestion caused by extraordinary and unanticipated economic development within any area of the state;
(3) To advance funds to any city or county to be used
exclusively for the construction or improvement of any city
street or county road when necessary to alleviate or prevent
intolerable traffic congestion caused by extraordinary and
unanticipated economic development within a particular area
of the state. Before funds provided by the sale of bonds as
authorized in RCW 47.10.761 through 47.10.770, are loaned
to any city or county for the purposes specified herein, the
department shall enter into an agreement with the city or
county providing for repayment to the motor vehicle fund of
such funds, together with the amount of bond interest
thereon, from the city's or the county's share of the motor
vehicle funds arising from excise taxes on motor vehicle
fuels, over a period not to exceed twenty-five years; and
(4) To participate in projects on state highways or
projects benefiting state highways that have been selected for
funding by entities other than the Washington state department of transportation and require a financing contribution
by the department of transportation. [1993 sp.s. c 11 § 1;
1984 c 7 § 111; 1967 ex.s. c 7 § 13.]
47.10.761
Severability—1984 c 7: See note following RCW 47.01.141.
47.10.762 Issuance and sale of general obligation
bonds. In order to provide reserve funds for the purposes
specified in RCW 47.10.761, there shall be issued and sold
general obligation bonds of the state of Washington in the
sum of twenty-five million dollars or such amount thereof
and at such times as may be determined to be necessary by
the state transportation commission. The issuance, sale and
retirement of said bonds shall be under the supervision and
control of the state finance committee which, upon request
being made by the Washington state transportation commission, shall provide for the issuance, sale and retirement of
coupon or registered bonds to be dated, issued and sold from
time to time in such amounts as may be necessary for the purposes enumerated in RCW 47.10.761. [1993 sp.s. c 11 § 2;
1967 ex.s. c 7 § 14.]
47.10.762
47.10.763 Bonds—Term—Terms and conditions—
Signatures—Registration—Where payable—Negotiable
47.10.763
(2004 Ed.)
Highway Construction Bonds
instruments. Each of such bonds shall be made payable at
any time not exceeding twenty-five years from the date of its
issuance, with such reserved rights of prior redemption, bearing such interest, and such terms and conditions, as the state
finance committee may prescribe to be specified therein. The
bonds shall be signed by the governor and the state treasurer
under the seal of the state, one of which signatures shall be
made manually and the other signature may be in printed facsimile, and any coupons attached to such bonds shall be
signed by the same officers whose signatures thereon may be
in printed facsimile. Any bonds may be registered in the
name of the holder on presentation to the state treasurer or at
the fiscal agency of the state of Washington in New York
City, as to principal alone, or as to both principal and interest
under such regulations as the state treasurer may prescribe.
Such bonds shall be payable at such places as the state
finance committee may provide. All bonds issued hereunder
shall be fully negotiable instruments. [1967 ex.s. c 7 § 15.]
47.10.764
47.10.764 Bonds—Denominations—Manner and
terms of sale—Legal investment for state funds. The
bonds issued hereunder shall be in denominations to be prescribed by the state finance committee and may be sold in
such manner and in such amounts and at such times and on
such terms and conditions as the committee may prescribe. If
the bonds are sold to any purchaser other than the state of
Washington, they shall be sold at public sale, and it shall be
the duty of the state finance committee to cause such sale to
be advertised in such manner as it shall deem sufficient.
Bonds issued under the provisions of RCW 47.10.761
through 47.10.771 shall be legal investment for any of the
funds of the state, except the permanent school fund. [1967
ex.s. c 7 § 16.]
47.10.765
47.10.765 Bonds—Bond proceeds—Deposit and use.
The money arising from the sale of said bonds shall be deposited in the state treasury to the credit of the motor vehicle
fund and such money shall be available only for the purposes
enumerated in RCW 47.10.761 and for payment of the
expense incurred in the drafting, printing, issuance and sale
of any such bonds. [1967 ex.s. c 7 § 17.]
47.10.766
47.10.766 Bonds—Statement describing nature of
obligation—Pledge of excise taxes. Bonds issued under the
provisions of RCW 47.10.761 through 47.10.771 shall distinctly state that they are not a general obligation of the state,
but are payable in the manner provided in RCW 47.10.761
through 47.10.771 from the proceeds of state excise taxes on
motor vehicle fuels imposed by chapter 82.36 RCW and
*chapter 82.40 RCW. The proceeds of such excise taxes are
hereby pledged to the payment of any bonds and the interest
thereon issued under the provisions of RCW 47.10.761
through 47.10.771, and the legislature hereby agrees to continue to impose the same excise taxes on motor vehicle fuels
in amounts sufficient to pay, when due, the principal and
interest on all bonds issued under the provisions of RCW
47.10.761 through 47.10.771. [1967 ex.s. c 7 § 18.]
*Reviser's note: Chapter 82.40 RCW, see note following RCW
47.10.729.
(2004 Ed.)
47.10.770
47.10.767
47.10.767 Bonds—Designation of funds to repay
bonds and interest. Any funds required to repay such
bonds, or the interest thereon when due, subject to the proviso
of this section, shall be taken from that portion of the motor
vehicle fund which results from the imposition of excise
taxes on motor vehicle fuels and which is, or may be appropriated to the department for state highway purposes, and
shall never constitute a charge against any allocations of such
funds to counties, cities, and towns unless and until the
amount of the motor vehicle fund arising from the excise
taxes on motor vehicle fuels and available for state highway
purposes proves insufficient to meet the requirements for
bond retirement or interest on any such bonds. [1984 c 7 §
112; 1967 ex.s. c 7 § 19.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.10.768
47.10.768 Bonds—Pledge of federal aid funds. As
additional security for payment of the principal amount of
any or all of the bonds to be issued hereunder, the state
finance committee, with the consent of the department, may
pledge all or any portion of the federal aid funds received or
from time to time to be received by the state from the United
States under the provisions of the federal-aid highway act of
1956, as amended, for the construction of Washington's portion of the national system of interstate and defense highways. [1984 c 7 § 113; 1967 ex.s. c 7 § 20.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.10.769
47.10.769 Bonds—Repayment procedure—Bond
retirement fund. At least one year prior to the date any
interest is due and payable on such bonds or before the maturity date of any bonds, the state finance committee shall estimate, subject to the provisions of RCW 47.10.767, the percentage of the receipts in money of the motor vehicle fund,
resulting from collection of excise taxes on motor vehicle
fuels, for each month of the year which, together with federal
funds which may be pledged as provided in RCW 47.10.768,
shall be required to meet interest or bond payments hereunder
when due, and shall notify the state treasurer of such estimated requirement. The state treasurer shall thereafter from
time to time each month as such funds are paid into the motor
vehicle fund, transfer such percentage of the monthly receipts
from excise taxes on motor vehicle fuels of the motor vehicle
fund to the bond retirement fund, which fund shall be available solely for payment of interest or bonds when due. If in
any month it shall appear that the estimated percentage of
money so made is insufficient to meet the requirements for
interest or bond retirement, the treasurer shall notify the state
finance committee forthwith and such committee shall adjust
its estimates so that all requirements for interest and principal
of all bonds issued shall be fully met at all times. [1967 ex.s.
c 7 § 21.]
47.10.770
47.10.770 Bonds—Sums in excess of retirement
requirements—Use. Whenever the percentage of the motor
vehicle fund arising from excise taxes on motor fuels and the
federal funds which may be pledged as provided in RCW
47.10.768, payable into the highway bond retirement fund,
shall prove more than is required for the payment of interest
on bonds when due, or current retirement of bonds, any
[Title 47 RCW—page 55]
47.10.771
Title 47 RCW: Public Highways and Transportation
47.10.771 Bonds—Appropriation from motor vehicle fund. There is hereby appropriated from the motor vehicle fund to the state highway commission for the biennium
ending June 30, 1969, the sum of twenty-five million dollars,
or so much thereof as may be necessary to carry out the provisions of RCW 47.10.761 through 47.10.771. [1967 ex.s. c
7 § 23.]
required to be issued and sold for the purposes described in
subsection (1) of this section.
(3) Any bonds authorized by subsection (1) of this section that the transportation commission determines are no
longer required for the purpose of paying the cost of the designated interstate highway improvements described therein
shall be issued and sold, upon the request of the Washington
state transportation commission, to provide funds for the
location, design, right of way, and construction of major
transportation improvements throughout the state that are
identified as category C improvements in *RCW 47.05.030.
[1985 c 406 § 1; 1982 c 19 § 3; 1981 c 316 § 10; 1979 ex.s. c
180 § 1.]
STATE HIGHWAYS IN URBAN AREAS
*Reviser's note: RCW 47.05.030 was amended by 1993 c 490 § 3 and
no longer defines highway projects or improvements.
excess may, in the discretion of the state finance committee,
be available for the prior redemption of any bonds or remain
available in the fund to reduce the requirements upon the fuel
excise tax portion of the motor vehicle fund at the next interest or bond payment period. [1967 ex.s. c 7 § 22.]
47.10.771
Severability—1982 c 19: See note following RCW 47.10.801.
47.10.775 Issuance and sale of limited obligation
bonds, terms, conditions, retirement, use of proceeds, etc.
See RCW 47.26.400 through 47.26.407.
47.10.775
COUNTY AND CITY ARTERIALS IN URBAN AREAS
47.10.777 Issuance and sale of limited obligation
bonds, terms, conditions, retirement, use of proceeds, etc.
See RCW 47.26.420 through 47.26.460.
47.10.777
INTERSTATE 90 COMPLETION—1979 ACT
47.10.790 Issuance and sale of general obligation
bonds—State route 90 improvements—Category C
improvements. (1) In order to provide funds for the location, design, right of way, and construction of selected interstate highway improvements, there shall be issued and sold
upon the request of the Washington state transportation commission, a total of one hundred million dollars of general
obligation bonds of the state of Washington to pay the state's
share of costs for completion of state route 90 (state route 5 to
state route 405) and other related state highway projects eligible for regular federal interstate funding and until December 31, 1989, to temporarily pay the regular federal share of
construction of completion projects on state route 90 (state
route 5 to state route 405) and other related state highway
projects eligible for regular interstate funding in advance of
federal-aid apportionments under the provisions of 23 U.S.C.
Secs. 115 or 122: PROVIDED, That the total amount of
bonds issued to temporarily pay the regular federal share of
construction of federal-aid interstate highways in advance of
federal-aid apportionments as authorized by this section and
RCW 47.10.801 shall not exceed one hundred twenty million
dollars: PROVIDED FURTHER, That the transportation
commission shall consult with the legislative transportation
committee prior to the adoption of plans for the obligation of
federal-aid apportionments received in federal fiscal year
1985 and subsequent years to pay the regular federal share of
federal-aid interstate highway construction projects or to convert such apportionments under the provisions of 23 U.S.C.
Secs. 115 or 122.
(2) The transportation commission, in consultation with
the legislative transportation committee, may at any time find
and determine that any amount of the bonds authorized in
subsection (1) of this section, and not then sold, are no longer
47.10.790
[Title 47 RCW—page 56]
Severability—1981 c 316: See RCW 47.10.811.
47.10.791
47.10.791 Administration and amount of bond sales.
Upon request being made by the transportation commission,
the state finance committee shall supervise and provide for
the issuance, sale, and retirement of the bonds authorized by
RCW 47.10.790 in accordance with the provisions of chapter
39.42 RCW. The amount of such bonds issued and sold under
the provisions of RCW 47.10.790 through 47.10.798 in any
biennium may not exceed the amount of a specific appropriation therefor. Such bonds may be sold from time to time in
such amounts as may be necessary for the orderly progress of
the state highway improvements specified in RCW
47.10.790. The bonds shall be sold in such manner, at such
time or times, in such amounts, and at such price or prices as
the state finance committee shall determine. The state finance
committee may obtain insurance, letters of credit, or other
credit facility devices with respect to the bonds and may
authorize the execution and delivery of agreements, promissory notes, and other obligations for the purpose of insuring
the payment or enhancing the marketability of the bonds.
Promissory notes or other obligations issued under this section shall not constitute a debt or the contracting of indebtedness under any constitutional or statutory indebtedness limitation if their payment is conditioned upon the failure of the
state to pay the principal of or interest on the bonds with
respect to which the promissory notes or other obligations
relate. The state finance committee may authorize the issuance of short-term obligations in lieu of long-term obligations for the purposes of more favorable interest rates, lower
total interest costs, and increased marketability and for the
purposes of retiring the bonds during the life of the project for
which they were issued. [1986 c 290 § 6; 1979 ex.s. c 180 §
2.]
47.10.792
47.10.792 Bond proceeds—Deposit and use. The proceeds from the sale of the bonds authorized by RCW
47.10.790 shall be deposited in the motor vehicle fund and
such proceeds shall be available only for the purposes enumerated in RCW 47.10.790, for the payment of bond anticipation notes, if any, and for the payment of the expense
incurred in the drafting, printing, issuance, and sale of such
bonds. The costs of obtaining insurance, letters of credit, or
other credit enhancement devices with respect to the bonds
(2004 Ed.)
Highway Construction Bonds
shall be considered to be expenses incurred in the issuance
and sale of the bonds. [1986 c 290 § 7; 1979 ex.s. c 180 § 3.]
47.10.801
adjust its estimates so that all requirements for the interest on
and principal of all bonds issued shall be fully met at all
times. [1979 ex.s. c 180 § 6.]
47.10.793
47.10.793 Statement of general obligation—Pledge of
excise taxes. Bonds issued under the provisions of RCW
47.10.790 shall distinctly state that they are a general obligation of the state of Washington, shall pledge the full faith and
credit of the state to the payment of the principal thereof and
the interest thereon, and shall contain an unconditional promise to pay such principal and interest as the same shall
become due. The principal of and interest on such bonds shall
be first payable in the manner provided in RCW 47.10.790
through 47.10.798 from the proceeds of the state excise taxes
on motor vehicle and special fuels imposed by chapters 82.36
and 82.38 RCW. Proceeds of such excise taxes are hereby
pledged to the payment of any bonds and the interest thereon
issued under the provisions of RCW 47.10.790 through
47.10.798, and the legislature hereby agrees to continue to
impose the same excise taxes on motor vehicle and special
fuels in amounts sufficient to pay, when due, the principal
and interest on all bonds issued under the provisions of RCW
47.10.790 through 47.10.798. [1995 c 274 § 6; 1979 ex.s. c
180 § 4.]
47.10.794
47.10.794 Designation of funds to repay bonds and
interest. Any funds required to repay the bonds authorized
by RCW 47.10.790 or the interest thereon when due shall be
taken from that portion of the motor vehicle fund which
results from the imposition of excise taxes on motor vehicle
and special fuels and which is distributed to the state for
expenditure pursuant to RCW 46.68.130 and shall never constitute a charge against any allocations of such funds to counties, cities, and towns unless and until the amount of the
motor vehicle fund arising from the excise taxes on motor
vehicle and special fuels and available for state highway purposes proves insufficient to meet the requirements for bond
retirement or interest on any such bonds. [1979 ex.s. c 180 §
5.]
47.10.795
47.10.795 Repayment procedure—Bond retirement
fund. At least one year prior to the date any interest is due
and payable on such bonds or before the maturity date of such
bonds, the state finance committee shall estimate, subject to
the provisions of RCW 47.10.794, the percentage of the
receipts in money of the motor vehicle fund resulting from
collection of excise taxes on motor vehicle and special fuels,
for each month of the year which shall be required to meet
interest or bond payments when due and shall notify the treasurer of such estimated requirement. The state treasurer shall
thereafter from time to time each month as such funds are
paid into the motor vehicle fund, transfer such percentage of
the monthly receipts from excise taxes on motor vehicle and
special fuels of the motor vehicle fund to the highway bond
retirement fund heretofore created in the state treasury, which
funds shall be available solely for payment of the principal of
and interest on the bonds when due. If in any month it shall
appear that the estimated percentage of moneys so made is
insufficient to meet the requirements for payment of the principal thereof or interest thereon, the treasurer shall notify the
state finance committee forthwith, and such committee shall
(2004 Ed.)
47.10.796
47.10.796 Sums in excess of retirement requirements—Use. Whenever the percentage of the motor vehicle
fund arising from excise taxes on motor vehicle and special
fuels payable into the highway bond retirement fund shall
prove more than is required for the payment of interest on
bonds when due, or current retirement of bonds, any excess
may, in the discretion of the state finance committee, be
available for the prior redemption of any bonds pursuant to
applicable bond covenants or remain available in the fund to
reduce requirements upon the fuel excise tax portion of the
motor vehicle fund. [1979 ex.s. c 180 § 7.]
47.10.797
47.10.797 Bonds legal investment for state funds.
The bonds authorized in RCW 47.10.790 through 47.10.798
constitute a legal investment for all state funds or for funds
under state control and all funds of municipal corporations.
[1979 ex.s. c 180 § 8.]
47.10.798
47.10.798 Bonds equal charge against fuel tax revenues. Except as otherwise provided by statute, general obligation bonds issued under authority of legislation enacted
during the 45th session of the legislature and thereafter and
which pledge motor vehicle and special fuel excise taxes for
the payment of principal and interest thereon shall be an
equal charge against the revenues from such motor vehicle
and special fuel excise taxes. [1979 ex.s. c 180 § 9.]
47.10.799
47.10.799 Appropriation—Expenditure limited to
bond sale proceeds. There is hereby appropriated from the
motor vehicle fund to the department of transportation for the
biennium ending June 30, 1981, the sum of ten million dollars, or so much thereof as may be necessary, to carry out the
provisions of RCW 47.10.790: PROVIDED, That the money
available for expenditure under this appropriation may not
exceed the amount of money derived from the sale of ten million dollars of bonds authorized by RCW 47.10.790 and
deposited to the credit of the motor vehicle fund. [1979 ex.s.
c 180 § 10.]
47.10.800
47.10.800 Severability—1979 ex.s. c 180. If any provision of RCW 47.10.790 through 47.10.800 or its application to any person or circumstance is held invalid, the remainder of RCW 47.10.790 through 47.10.800 or the application
of the provision to other persons or circumstances is not
affected. [1979 ex.s. c 180 § 12.]
INTERSTATE HIGHWAY, CATEGORY A,
CATEGORY C IMPROVEMENTS—1981 ACT
47.10.801
47.10.801 Issuance and sale of general obligation
bonds. (1) In order to provide funds necessary for the location, design, right of way, and construction of selected interstate and other state highway improvements, there shall be
issued and sold, subject to subsections (2), (3), and (4) of this
section, upon the request of the Washington state transportation commission a total of four hundred sixty million dollars
[Title 47 RCW—page 57]
47.10.802
Title 47 RCW: Public Highways and Transportation
of general obligation bonds of the state of Washington for the
following purposes and specified sums:
(a) Not to exceed two hundred twenty-five million dollars to pay the state's share of costs for federal-aid interstate
highway improvements and until December 31, 1989, to temporarily pay the regular federal share of construction of federal-aid interstate highway improvements to complete state
routes 82, 90, 182, and 705 in advance of federal-aid apportionments under the provisions of 23 U.S.C. Secs. 115 or 122:
PROVIDED, That the total amount of bonds issued to temporarily pay the regular federal share of construction of federalaid interstate highways in advance of federal-aid apportionments as authorized by this section and RCW 47.10.790 shall
not exceed one hundred twenty million dollars: PROVIDED
FURTHER, That the transportation commission shall consult
with the legislative transportation committee prior to the
adoption of plans for the obligation of federal-aid apportionments received in federal fiscal year 1985 and subsequent
years to pay the regular federal share of federal-aid interstate
highway construction projects or to convert such apportionments under the provisions of 23 U.S.C. Secs. 115 or 122;
(b) Two hundred twenty-five million dollars for major
transportation improvements throughout the state that are
identified as category C improvements and for selected major
non-interstate construction and reconstruction projects that
are included as Category A Improvements in *RCW
47.05.030;
(c) Ten million dollars for state highway improvements
necessitated by planned economic development, as determined through the procedures set forth in RCW 43.160.074
and 47.01.280.
(2) The amount of bonds authorized in subsection (1)(a)
of this section shall be reduced if the transportation commission, in consultation with the legislative transportation committee, determines that any of the bonds that have not been
sold are no longer required.
(3) The amount of bonds authorized in subsection (1)(b)
of this section shall be increased by an amount not to exceed,
and concurrent with, any reduction of bonds authorized under
subsection (1)(a) of this section in the manner prescribed in
subsection (2) of this section.
(4) The transportation commission may decrease the
amount of bonds authorized in subsection (1)(c) of this section and increase the amount of bonds authorized in subsection (1)(a) or (b) of this section, or both by an amount equal
to the decrease in subsection (1)(c) of this section. The transportation commission may decrease the amount of bonds
authorized in subsection (1)(c) of this section only if the legislature appropriates an equal amount of funds from the
motor vehicle fund - basic account for the purposes enumerated in subsection (1)(c) of this section. [1999 c 94 § 13;
1994 c 173 § 1. Prior: 1985 c 433 § 7; 1985 c 406 § 2; 1982
c 19 § 1; 1981 c 316 § 1.]
*Reviser's note: RCW 47.05.030 was amended by 1993 c 490 § 3 and
no longer defines categories of highway projects or improvements.
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
Effective date—1994 c 173: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[March 30, 1994]." [1994 c 173 § 2.]
[Title 47 RCW—page 58]
Nonseverability—1985 c 433: See note following RCW 43.160.074.
Severability—1982 c 19: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1982 c 19 § 5.]
47.10.802
47.10.802 Administration and amount of bond sales.
Upon request being made by the transportation commission,
the state finance committee shall supervise and provide for
the issuance, sale, and retirement of the bonds authorized by
RCW 47.10.801 in accordance with chapter 39.42 RCW. The
amount of such bonds issued and sold under RCW 47.10.801
through 47.10.809 in any biennium may not exceed the
amount of a specific appropriation therefor. Such bonds may
be sold from time to time in such amounts as may be necessary for the orderly progress of the state highway improvements specified in RCW 47.10.801. The amount of bonds
issued and sold under RCW 47.10.801(1)(a) in any biennium
shall not, except as provided in that section, exceed the
amount required to match federal-aid interstate funds available to the state of Washington. The transportation commission shall give notice of its intent to sell bonds to the legislative transportation committee before requesting the state
finance committee to issue and sell bonds authorized by
RCW 47.10.801(1)(a). The bonds shall be sold in such manner, at such time or times, in such amounts, and at such price
or prices as the state finance committee shall determine. The
state finance committee may obtain insurance, letters of
credit, or other credit facility devices with respect to the
bonds and may authorize the execution and delivery of agreements, promissory notes, and other obligations for the purpose of insuring the payment or enhancing the marketability
of the bonds. Promissory notes or other obligations issued
under this section shall not constitute a debt or the contracting
of indebtedness under any constitutional or statutory indebtedness limitation if their payment is conditioned upon the
failure of the state to pay the principal of or interest on the
bonds with respect to which the promissory notes or other
obligations relate. The state finance committee may authorize
the issuance of short-term obligations in lieu of long-term
obligations for the purposes of more favorable interest rates,
lower total interest costs, and increased marketability and for
the purposes of retiring the bonds during the life of the
project for which they were issued. [1986 c 290 § 1; 1983 1st
ex.s. c 53 § 23; 1982 c 19 § 2; 1981 c 316 § 2.]
Severability—1983 1st ex.s. c 53: "If any provision of this act or its
application to any person or circumstance is held invalid, the remainder of
the act or the application of the provision to other persons or circumstances
is not affected." [1983 1st ex.s. c 53 § 36.]
Severability—1982 c 19: See note following RCW 47.10.801.
47.10.803
47.10.803 Bond proceeds—Deposit and use. The proceeds from the sale of the bonds authorized by RCW
47.10.801(1) shall be deposited in the motor vehicle fund. All
such proceeds shall be available only for the purposes enumerated in RCW 47.10.801, for the payment of bond anticipation notes, if any, and for the payment of the expense
incurred in the drafting, printing, issuance, and sale of such
bonds. The costs of obtaining insurance, letters of credit, or
other credit enhancement devices with respect to the bonds
shall be considered to be expenses incurred in the issuance
(2004 Ed.)
Highway Construction Bonds
and sale of the bonds. [1999 c 94 § 14; 1986 c 290 § 2; 1985
c 433 § 8; 1981 c 316 § 3.]
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
47.10.813
committee forthwith, and the committee shall adjust its estimates so that all requirements for the interest on and principal
of all bonds issued shall be fully met at all times. [1981 c 316
§ 6.]
Nonseverability—1985 c 433: See note following RCW 43.160.074.
47.10.807
47.10.804
47.10.804 Statement of general obligation—Pledge of
excise taxes. Bonds issued under RCW 47.10.801 shall distinctly state that they are a general obligation of the state of
Washington, shall pledge the full faith and credit of the state
to the payment of the principal thereof and the interest
thereon, and shall contain an unconditional promise to pay
such principal and interest as the same shall become due. The
principal of and interest on such bonds shall be first payable
in the manner provided in RCW 47.10.801 through 47.10.809
from the proceeds of the state excise taxes on motor vehicle
and special fuels imposed by chapters 82.36 and 82.38 RCW.
Proceeds of such excise taxes are hereby pledged to the payment of any bonds and the interest thereon issued under RCW
47.10.801 through 47.10.809, and the legislature hereby
agrees to continue to impose these excise taxes on motor
vehicle and special fuels in amounts sufficient to pay, when
due, the principal and interest on all bonds issued under RCW
47.10.801 through 47.10.809. [1995 c 274 § 7; 1981 c 316 §
4.]
47.10.805
47.10.805 Designation of funds to repay bonds and
interest. Any funds required to repay the bonds authorized
by RCW 47.10.801 or the interest thereon when due shall be
taken from that portion of the motor vehicle fund which
results from the imposition of excise taxes on motor vehicle
and special fuels and which is distributed to the state for
expenditure pursuant to RCW 46.68.130 and shall never constitute a charge against any allocations of such funds to counties, cities, and towns unless the amount of the motor vehicle
fund arising from the excise taxes on motor vehicle and special fuels and available for state highway purposes proves
insufficient to meet the requirements for bond retirement or
interest on any such bonds. [1981 c 316 § 5.]
47.10.807 Sums in excess of retirement requirements—Use. Whenever the percentage of the motor vehicle
fund arising from excise taxes on motor vehicle and special
fuels payable into the highway bond retirement fund shall
prove more than is required for the payment of interest on
bonds when due, or current retirement bonds, any excess
may, in the discretion of the state finance committee, be
available for the prior redemption of any bonds or remain
available in the fund to reduce requirements upon the fuel
excise tax portion of the motor vehicle fund at the next interest or bond payment period. [1981 c 316 § 7.]
47.10.808
47.10.808 Bonds legal investment for state funds.
The bonds authorized in RCW 47.10.801 through 47.10.809
constitute a legal investment for all state funds or for funds
under state control and all funds of municipal corporations.
[1981 c 316 § 8.]
47.10.809
47.10.809 Bonds equal charge against fuel tax revenues. Bonds issued under authority of RCW 47.10.801
through 47.10.809 and any subsequent general obligation
bonds of the state of Washington which may be authorized
and which pledge motor vehicle and special fuel excise taxes
for the payment of principal and interest thereon shall be an
equal charge against the revenues from such motor vehicle
and special fuel excise taxes. [1981 c 316 § 9.]
47.10.811
47.10.811 Severability—1981 c 316. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1981 c 316 § 13.]
CATEGORY C IMPROVEMENTS—1993 ACT
47.10.806
47.10.806 Repayment procedure—Bond retirement
fund. At least one year prior to the date any interest is due
and payable on such bonds or before the maturity date of such
bonds, the state finance committee shall estimate, subject to
RCW 47.10.805, the percentage of the receipts in money of
the motor vehicle fund resulting from collection of excise
taxes on motor vehicle and special fuels, for each month of
the year which shall be required to meet interest or bond payments when due and shall notify the treasurer of such estimated requirement. The state treasurer shall thereafter from
time to time each month as such funds are paid into the motor
vehicle fund, transfer such percentage of the monthly receipts
from excise taxes on motor vehicle and special fuels of the
motor vehicle fund to the highway bond retirement fund
heretofore created in the state treasury, which funds shall be
available solely for payment of the principal of and interest
on the bonds when due. If in any month it shall appear that the
estimated percentage of moneys so made is insufficient to
meet the requirements for payment of the principal thereof or
interest thereon, the treasurer shall notify the state finance
(2004 Ed.)
47.10.812
47.10.812 Issuance and sale of general obligation
bonds. In order to provide funds necessary for the location,
design, right of way, and construction of state highway
improvements that are identified as special category C
improvements, there shall be issued and sold upon the request
of the Washington state transportation commission a total of
three hundred thirty million dollars of general obligation
bonds of the state of Washington. [1999 sp.s. c 2 § 1; 1993 c
431 § 1.]
47.10.813
47.10.813 Administration and amount of sale. Upon
the request of the transportation commission, the state
finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds authorized by RCW
47.10.812 through 47.10.817 in accordance with chapter
39.42 RCW. Bonds authorized by RCW 47.10.812 through
47.10.817 shall be sold in such manner, at such time or times,
in such amounts, and at such price as the state finance committee shall determine. No such bonds may be offered for
[Title 47 RCW—page 59]
47.10.814
Title 47 RCW: Public Highways and Transportation
sale without prior legislative appropriation of the net proceeds of the sale of the bonds.
The state finance committee shall consider the issuance
of short-term obligations in lieu of long-term obligations for
the purposes of more favorable interest rates, lower total
interest costs, and increased marketability and for the purpose
of retiring the bonds during the life of the project for which
they were issued. [1993 c 431 § 2.]
47.10.814
47.10.814 Proceeds—Deposit and use. The proceeds
from the sale of bonds authorized by RCW 47.10.812
through 47.10.817 shall be deposited in the special category
C account in the motor vehicle fund. The proceeds shall be
available only for the purposes enumerated in RCW
47.10.812, for the payment of bond anticipation notes, if any,
and for the payment of bond issuance costs, including the
costs of underwriting. [1993 c 431 § 3.]
47.10.815
47.10.815 Statement of general obligation—Pledge of
excise taxes. Bonds issued under the authority of RCW
47.10.812 through 47.10.817 shall distinctly state that they
are a general obligation of the state of Washington, shall
pledge the full faith and credit of the state to the payment of
the principal thereof and the interest thereon, and shall contain an unconditional promise to pay such principal and interest as the same shall become due. The principal and interest
on the bonds shall be first payable in the manner provided in
RCW 47.10.812 through 47.10.817 from the proceeds of the
state excise taxes on motor vehicle and special fuels imposed
by chapters 82.36 and 82.38 RCW. Proceeds of such excise
taxes are hereby pledged to the payment of any bonds and the
interest thereon issued under the authority of RCW 47.10.812
through 47.10.817, and the legislature agrees to continue to
impose these excise taxes on motor vehicle and special fuels
in amounts sufficient to pay, when due, the principal and
interest on all bonds issued under the authority of RCW
47.10.812 through 47.10.817. [1995 c 274 § 8; 1993 c 431 §
4.]
47.10.816
47.10.816 Designation of funds to repay bonds and
interest. Both principal and interest on the bonds issued for
the purposes of RCW 47.10.812 through 47.10.817 shall be
payable from the highway bond retirement fund. The state
finance committee may provide that a special account be created in the fund to facilitate payment of the principal and
interest. The state finance committee shall, on or before June
30th of each year, certify to the state treasurer the amount
required for principal and interest on the bonds in accordance
with the bond proceedings. The state treasurer shall withdraw
revenues from the special category C account in the motor
vehicle fund and deposit in the highway bond retirement
fund, or a special account in the fund, such amounts, and at
such times, as are required by the bond proceedings.
Any funds required for bond retirement or interest on the
bonds authorized by RCW 47.10.812 through 47.10.817 shall
be taken from that portion of the motor vehicle fund that
results from the imposition of excise taxes on motor vehicle
and special fuels and that is distributed to the special category
C account in the motor vehicle fund. Funds required shall
never constitute a charge against any other allocations of
[Title 47 RCW—page 60]
motor vehicle fuel and special fuel tax revenues to the state,
counties, cities and towns unless the amount arising from
excise taxes on motor vehicle and special fuels distributed to
the special category C account proves insufficient to meet the
requirements for bond retirement or interest on any such
bonds.
Any payments for bond retirement or interest on the
bonds taken from other revenues from the motor vehicle fuel
or special fuel taxes that are distributable to the state, counties, cities and towns, shall be repaid from the first revenues
from the motor vehicle fuel or special fuel taxes distributed to
the special category C account not required for bond retirement or interest on the bonds. [1993 c 431 § 5.]
47.10.817
47.10.817 Equal charge against fuel tax revenues.
Bonds issued under the authority of RCW 47.10.812 through
47.10.816 and this section and any other general obligation
bonds of the state of Washington that have been or that may
be authorized and that pledge motor vehicle and special fuels
excise taxes for the payment of principal and interest thereon
shall be an equal charge against the revenues from such
motor vehicle and special fuels excise taxes. [1993 c 431 §
6.]
47.10.818
47.10.818 Severability—1993 c 431. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1993 c 431 § 8.]
INTERSTATE, OTHER HIGHWAY IMPROVEMENTS—
1993 ACT
47.10.819
47.10.819 Issuance and sale of general obligation
bonds. In order to provide funds necessary for the location,
design, right of way, and construction of selected interstate
and other highway improvements, there shall be issued and
sold upon the request of the Washington state transportation
commission a total of one hundred million dollars of general
obligation bonds of the state of Washington for the following
purposes and specified sums:
(1) Not to exceed twenty-five million dollars to pay the
state's and local governments' share of matching funds for the
ten demonstration projects identified in the Intermodal Surface Transportation Efficiency Act of 1991.
(2) Not to exceed fifty million dollars to temporarily pay
the regular federal share of construction in advance of federal-aid apportionments as authorized by this section.
(3) Not to exceed twenty-five million dollars for loans to
local governments to provide the required matching funds to
take advantage of available federal funds. These loans shall
be on such terms and conditions as determined by the Washington state transportation commission, but in no event may
the loans be for a period of more than ten years. The interest
rate on the loans authorized under this subsection shall be
equal to the interest rate on the bonds sold for such purposes.
[1993 c 432 § 1.]
47.10.820
47.10.820 Administration and amount of sale. Upon
the request of the transportation commission, the state
(2004 Ed.)
Highway Construction Bonds
finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds authorized by RCW
47.10.819 through 47.10.824 in accordance with chapter
39.42 RCW. Bonds authorized by RCW 47.10.819 through
47.10.824 shall be sold in such manner, at such time or times,
in such amounts, and at such price as the state finance committee shall determine. No such bonds may be offered for
sale without prior legislative appropriation of the net proceeds of the sale of the bonds.
The state finance committee shall consider the issuance
of short-term obligations in lieu of long-term obligations for
the purposes of more favorable interest rates, lower total
interest costs, and increased marketability and for the purpose
of retiring the bonds during the life of the project for which
they were issued. [1993 c 432 § 2.]
47.10.821
47.10.821 Proceeds—Deposit and use. The proceeds
from the sale of bonds authorized by RCW 47.10.819
through 47.10.824 shall be deposited in the motor vehicle
fund. The proceeds shall be available only for the purposes
enumerated in RCW 47.10.819, for the payment of bond
anticipation notes, if any, and for the payment of bond issuance costs, including the costs of underwriting. [1993 c 432
§ 3.]
47.10.822
47.10.822 Statement of general obligation—Pledge of
excise taxes. Bonds issued under the authority of RCW
47.10.819 through 47.10.824 shall distinctly state that they
are a general obligation of the state of Washington, shall
pledge the full faith and credit of the state to the payment of
the principal thereof and the interest thereon, and shall contain an unconditional promise to pay such principal and interest as the same shall become due. The principal and interest
on the bonds shall be first payable in the manner provided in
RCW 47.10.819 through 47.10.824 from the proceeds of the
state excise taxes on motor vehicle and special fuels imposed
by chapters 82.36 and 82.38 RCW. Proceeds of such excise
taxes are hereby pledged to the payment of any bonds and the
interest thereon issued under the authority of RCW 47.10.819
through 47.10.824, and the legislature agrees to continue to
impose these excise taxes on motor vehicle and special fuels
in amounts sufficient to pay, when due, the principal and
interest on all bonds issued under the authority of RCW
47.10.819 through 47.10.824. [1995 c 274 § 9; 1993 c 432 §
4.]
47.10.823
47.10.823 Designation of funds to repay bonds and
interest. Both principal and interest on the bonds issued for
the purposes of RCW 47.10.819 through 47.10.824 shall be
payable from the highway bond retirement fund. The state
finance committee may provide that a special account be created in the fund to facilitate payment of the principal and
interest. The state finance committee shall, on or before June
30th of each year, certify to the state treasurer the amount
required for principal and interest on the bonds in accordance
with the bond proceedings. The state treasurer shall withdraw
revenues from the motor vehicle fund and deposit in the highway bond retirement fund, or a special account in the fund,
such amounts, and at such times, as are required by the bond
proceedings.
(2004 Ed.)
47.10.834
Any funds required for bond retirement or interest on the
bonds authorized by RCW 47.10.819 through 47.10.824 shall
be taken from that portion of the motor vehicle fund that
results from the imposition of excise taxes on motor vehicle
and special fuels and which is, or may be appropriated to the
department of transportation for state highway purposes.
Funds required shall never constitute a charge against any
other allocations of motor vehicle fuel and special fuel tax
revenues to the state, counties, cities, and towns unless the
amount arising from excise taxes on motor vehicle and special fuels distributed to the state in the motor vehicle fund
proves insufficient to meet the requirements for bond retirement or interest on any such bonds.
Any payments for bond retirement or interest on the
bonds taken from other revenues from the motor vehicle fuel
or special fuel taxes that are distributed to the state, counties,
cities, and towns, shall be repaid from the first revenues from
the motor vehicle fuel or special fuel taxes distributed to the
motor vehicle fund not required for bond retirement or interest on the bonds. [1993 c 432 § 5.]
47.10.824 Equal charge against fuel tax revenues.
Bonds issued under the authority of RCW 47.10.819 through
47.10.823 and this section and any other general obligation
bonds of the state of Washington that have been or that may
be authorized and that pledge motor vehicle and special fuels
excise taxes for the payment of principal and interest thereon
shall be an equal charge against the revenues from such
motor vehicle and special fuels excise taxes. [1993 c 432 §
6.]
47.10.824
47.10.825 Severability—1993 c 432. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1993 c 432 § 8.]
47.10.825
PUBLIC-PRIVATE TRANSPORTATION INITIATIVES—
1994 ACT
47.10.834
47.10.834 Issuance and sale of general obligation
bonds. In order to provide funds necessary to implement the
public-private transportation initiatives authorized by chapter
47.46 RCW, there shall be issued and sold upon the request
of the Washington state transportation commission a total of
twenty-five million six hundred twenty-five thousand dollars
of general obligation bonds of the state of Washington.
[1995 2nd sp.s. c 15 § 2; 1994 c 183 § 2.]
Severability—1995 2nd sp.s. c 15: "If any provision of this act or its
application to any person or circumstance is held invalid, the remainder of
the act or the application of the provision to other persons or circumstances
is not affected." [1995 2nd sp.s. c 15 § 9.]
Effective date—1995 2nd sp.s. c 15: "This act is necessary for the
immediate preservation of the public peace, health, or safety, or support of
the state government and its existing public institutions, and shall take effect
immediately [June 16, 1995]." [1995 2nd sp.s. c 15 § 10.]
Finding—1994 c 183: "The legislature finds and declares:
Successful implementation of the public-private transportation initiatives program authorized in chapter 47.46 RCW may require the financial
participation of the state in projects authorized in that chapter.
The participation may take the form of loans, loan guarantees, user
charge guarantees, including incidental costs incurred by the department in
direct support of activities required under chapter 47.46 RCW, or such other
[Title 47 RCW—page 61]
47.10.835
Title 47 RCW: Public Highways and Transportation
cash contribution arrangements as may improve the ability of the private
entities sponsoring the projects to obtain financing.
It is in the best interests of the people of the state that state funding of
possible financial participation in the projects authorized under chapter
47.46 RCW be in the form of long-term bonds. In order to repay expenditures incurred in the 1993-1995 biennium, up to two million two hundred
thousand dollars of these bonds may be expended on highway improvement
projects, under chapter 47.05 RCW." [1995 2nd sp.s. c 15 § 1; 1994 c 183 §
1.]
47.10.835
47.10.835 Administration and amount of sale. Upon
the request of the transportation commission, the state
finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds authorized by RCW
47.10.834 through 47.10.841 in accordance with chapter
39.42 RCW. Bonds authorized by RCW 47.10.834 through
47.10.841 shall be sold in such manner, at such time or times,
in such amounts, and at such price as the state finance committee shall determine. No such bonds may be offered for
sale without prior legislative appropriation of the net proceeds of the sale of the bonds. In making such appropriation
of the net proceeds of the sale of the bonds, the legislature
shall specify what portion of the appropriation is provided for
possible loans and what portion of the appropriation is provided for other forms of cash contributions to projects.
The state finance committee shall consider the issuance
of short-term obligations in lieu of long-term obligations for
the purposes of more favorable interest rates, lower total
interest costs, and increased marketability and for the purpose
of retiring the bonds during the life of the project for which
they were issued. [1994 c 183 § 3.]
47.10.836
47.10.836 Proceeds—Deposit and use. (1) The proceeds from the sale of bonds authorized by RCW 47.10.834
through 47.10.841 that are in support of possible loans as
specified under RCW 47.10.835 shall be deposited into the
motor vehicle fund. The proceeds shall be available only for
the purposes of making loans to entities authorized to undertake projects selected under chapter 47.46 RCW as enumerated in RCW 47.10.835, including incidental costs incurred
by the department in direct support of activities required
under chapter 47.46 RCW, for the payment of bond anticipation notes, if any, and for the payment of bond issuance costs,
including the costs of underwriting.
(2) The proceeds from the sale of bonds authorized by
RCW 47.10.834 through 47.10.841 that are in support of all
forms of cash contributions to projects selected under chapter
47.46 RCW, including incidental costs incurred by the
department in direct support of activities required under
chapter 47.46 RCW, except loans shall be deposited into the
motor vehicle fund. The proceeds shall be available only for
the purposes of making any contributions except loans to
projects selected under chapter 47.46 RCW, for the payment
of bond anticipation notes, if any, and for the payment of
bond issuance costs, including the costs of underwriting.
(3) Up to two million two hundred thousand dollars of
the proceeds from the sale of bonds authorized by RCW
47.10.834 through 47.10.841 may be expended on highway
improvement projects under chapter 47.05 RCW and for the
payment of bond issuance cost, including the cost of underwriting. Such proceeds shall be deposited into the motor
vehicle fund. [1995 2nd sp.s. c 15 § 3; 1994 c 183 § 4.]
[Title 47 RCW—page 62]
Severability—Effective date—1995 2nd sp.s. c 15: See notes following RCW 47.10.834.
47.10.837
47.10.837 Designation of funds to repay bonds and
interest. Principal and interest payments made on loans
authorized by chapter 47.46 RCW shall be deposited into the
motor vehicle fund and shall be available for the payment of
principal and interest on bonds authorized by RCW
47.10.834 through 47.10.841 and for such other purposes as
may be specified by law. [1995 2nd sp.s. c 15 § 4; 1994 c 183
§ 5.]
Severability—Effective date—1995 2nd sp.s. c 15: See notes following RCW 47.10.834.
47.10.838
47.10.838 Statement of general obligation—Pledge of
excise taxes. (1) Bonds issued under the authority of RCW
47.10.834 through 47.10.841 shall distinctly state that they
are a general obligation of the state of Washington, shall
pledge the full faith and credit of the state to the payment of
the principal thereof and the interest thereon, and shall contain an unconditional promise to pay such principal and interest as the same shall become due.
(2) The principal and interest on the bonds issued for the
purposes enumerated in RCW 47.10.836 shall be first payable in the manner provided in RCW 47.10.834 through
47.10.841 from the proceeds of the state excise taxes on
motor vehicle and special fuels imposed by chapters 82.36
and 82.38 RCW. Proceeds of those excise taxes are pledged
to the payment of any bonds and the interest thereon issued
under the authority of RCW 47.10.834 through 47.10.841,
and the legislature agrees to continue to impose these excise
taxes on motor vehicle and special fuels in amounts sufficient
to pay, when due, the principal and interest on all bonds
issued under the authority of RCW 47.10.834 through
47.10.841. [1995 2nd sp.s. c 15 § 5; 1994 c 183 § 6.]
Severability—Effective date—1995 2nd sp.s. c 15: See notes following RCW 47.10.834.
47.10.839
47.10.839 Repayment procedure—Bond retirement
fund. (1) Both principal and interest on the bonds issued for
the purposes of RCW 47.10.834 through 47.10.841 are payable from the highway bond retirement fund.
(2) The state finance committee shall, on or before June
30th of each year certify to the state treasurer the amount
required for principal and interest on the bonds issued for the
purposes specified in RCW 47.10.836 in accordance with the
bond proceedings. The state treasurer shall withdraw revenues from the motor vehicle fund and deposit into the highway bond retirement fund such amounts, and at such times, as
are required by the bond proceedings.
(3) Any funds required for bond retirement or interest on
the bonds authorized by RCW 47.10.834 through 47.10.841
shall be taken from that portion of the motor vehicle fund that
results from the imposition of excise taxes on motor vehicle
and special fuels which is, or may be appropriated to the
department of transportation for state highway purposes.
Funds required shall never constitute a charge against any
other allocations of motor vehicle fuel and special fuel tax
revenues to the state, counties, cities, or towns unless the
amount arising from excise taxes on motor vehicle and special fuels distributed to the state in the motor vehicle fund
(2004 Ed.)
Highway Construction Bonds
proves insufficient to meet the requirements for bond retirement or interest on any such bonds.
(4) Any payments for bond retirement or interest on the
bonds taken from other revenues from the motor vehicle fuel
and special fuel taxes that are distributable to the state, counties, cities, or towns shall be repaid from the first revenues
from the motor vehicle fuel or special fuel taxes distributed to
the motor vehicle fund not required for bond retirement or
interest on the bonds. [1995 2nd sp.s. c 15 § 6; 1994 c 183 §
7.]
Severability—Effective date—1995 2nd sp.s. c 15: See notes following RCW 47.10.834.
47.10.847
The state finance committee shall consider the issuance
of short-term obligations in lieu of long-term obligations for
the purposes of more favorable interest rates, lower total
interest costs, and increased marketability and for the purpose
of retiring the bonds during the life of the project for which
they were issued. [1998 c 321 § 17 (Referendum Bill No. 49,
approved November 3, 1998).]
Purpose—Severability—1998 c 321: See notes following RCW
82.14.045.
Effective dates—Application—1998 c 321 §§ 1-21, 44, and 45: See
note following RCW 82.14.045.
Referral to electorate—1998 c 321 §§ 1-21 and 44-46: See note following RCW 82.14.045.
47.10.841
47.10.841 Equal charge against motor vehicle excise
tax revenues. Bonds issued under the authority of RCW
47.10.834 through 47.10.839 and this section and any other
general obligation bonds of the state of Washington that have
been or that may be authorized and that pledge motor vehicle
and special fuels taxes for the payment of principal and interest thereon are an equal charge against the revenues from the
motor vehicle and special fuels excise taxes. [1995 2nd sp.s.
c 15 § 7; 1994 c 183 § 9.]
47.10.845 Proceeds—Deposit and use. The proceeds
from the sale of bonds authorized by RCW 47.10.843
through 47.10.848 shall be deposited in the motor vehicle
fund. The proceeds shall be available only for the purposes
enumerated in RCW 47.10.843, for the payment of bond
anticipation notes, if any, and for the payment of bond issuance costs, including the costs of underwriting. [1998 c 321
§ 18 (Referendum Bill No. 49, approved November 3,
1998).]
Severability—Effective date—1995 2nd sp.s. c 15: See notes following RCW 47.10.834.
Purpose—Severability—1998 c 321: See notes following RCW
82.14.045.
Effective dates—Application—1998 c 321 §§ 1-21, 44, and 45: See
note following RCW 82.14.045.
Referral to electorate—1998 c 321 §§ 1-21 and 44-46: See note following RCW 82.14.045.
47.10.842
47.10.842 Severability—1994 c 183. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1994 c 183 § 11.]
STATE AND LOCAL HIGHWAY IMPROVEMENTS—
1998 ACT
47.10.843
47.10.843 Bond issue authorized. In order to provide
funds necessary for the location, design, right of way, and
construction of state and local highway improvements, there
shall be issued and sold upon the request of the Washington
state transportation commission a maximum of one billion
nine hundred million dollars of general obligation bonds of
the state of Washington. [1998 c 321 § 16 (Referendum Bill
No. 49, approved November 3, 1998).]
Purpose—Severability—1998 c 321: See notes following RCW
82.14.045.
Effective dates—Application—1998 c 321 §§ 1-21, 44, and 45: See
note following RCW 82.14.045.
Referral to electorate—1998 c 321 §§ 1-21 and 44-46: See note following RCW 82.14.045.
47.10.844
47.10.844 Administration and amount of sale. Upon
the request of the transportation commission, the state
finance committee shall supervise and provide for the issuance, sale, and retirement of the bonds authorized by RCW
47.10.843 through 47.10.848 in accordance with chapter
39.42 RCW. Bonds authorized by RCW 47.10.843 through
47.10.848 shall be sold in such manner, at such time or times,
in such amounts, and at such price as the state finance committee shall determine. No such bonds may be offered for
sale without prior legislative appropriation of the net proceeds of the sale of the bonds.
(2004 Ed.)
47.10.845
47.10.846 Statement of general obligation—Pledge of
excise taxes. Bonds issued under the authority of RCW
47.10.843 through 47.10.848 shall distinctly state that they
are a general obligation of the state of Washington, shall
pledge the full faith and credit of the state to the payment of
the principal thereof and the interest thereon, and shall contain an unconditional promise to pay such principal and interest as the same shall become due. The principal and interest
on the bonds shall be first payable in the manner provided in
RCW 47.10.843 through 47.10.848 from the proceeds of the
state excise taxes on motor vehicle and special fuels imposed
by chapters 82.36 and 82.38 RCW. Proceeds of such excise
taxes are hereby pledged to the payment of any bonds and the
interest thereon issued under the authority of RCW 47.10.843
through 47.10.848, and the legislature agrees to continue to
impose these excise taxes on motor vehicle and special fuels
in amounts sufficient to pay, when due, the principal and
interest on all bonds issued under the authority of RCW
47.10.843 through 47.10.848. [1998 c 321 § 19 (Referendum
Bill No. 49, approved November 3, 1998).]
47.10.846
Purpose—Severability—1998 c 321: See notes following RCW
82.14.045.
Effective dates—Application—1998 c 321 §§ 1-21, 44, and 45: See
note following RCW 82.14.045.
Referral to electorate—1998 c 321 §§ 1-21 and 44-46: See note following RCW 82.14.045.
47.10.847 Repayment procedure—Bond retirement
fund. Both principal and interest on the bonds issued for the
purposes of RCW 47.10.843 through 47.10.848 shall be payable from the highway bond retirement fund. The state
finance committee may provide that a special account be cre47.10.847
[Title 47 RCW—page 63]
47.10.848
Title 47 RCW: Public Highways and Transportation
ated in the fund to facilitate payment of the principal and
interest. The state finance committee shall, on or before June
30th of each year, certify to the state treasurer the amount
required for principal and interest on the bonds in accordance
with the bond proceedings. The state treasurer shall withdraw
revenues from the motor vehicle fund and deposit in the highway bond retirement fund, or a special account in the fund,
such amounts, and at such times, as are required by the bond
proceedings.
Any funds required for bond retirement or interest on the
bonds authorized by RCW 47.10.843 through 47.10.848 shall
be taken from that portion of the motor vehicle fund that
results from the imposition of excise taxes on motor vehicle
and special fuels and which is, or may be, appropriated to the
department of transportation for state highway purposes.
Funds required shall never constitute a charge against any
other allocations of motor vehicle fuel and special fuel tax
revenues to the state, counties, cities and towns unless the
amount arising from excise taxes on motor vehicle and special fuels distributed to the state in the motor vehicle fund
proves insufficient to meet the requirements for bond retirement or interest on any such bonds.
Any payments for bond retirement or interest on the
bonds taken from other revenues from the motor vehicle fuel
or special fuel taxes that are distributable to the state, counties, cities, and towns, shall be repaid from the first revenues
from the motor vehicle fuel or special fuel taxes distributed to
the motor vehicle fund not required for bond retirement or
interest on the bonds. [1998 c 321 § 20 (Referendum Bill No.
49, approved November 3, 1998).]
Purpose—Severability—1998 c 321: See notes following RCW
82.14.045.
Effective dates—Application—1998 c 321 §§ 1-21, 44, and 45: See
note following RCW 82.14.045.
Referral to electorate—1998 c 321 §§ 1-21 and 44-46: See note following RCW 82.14.045.
the omnibus transportation budget, there shall be issued and
sold upon the request of the transportation commission a total
of two billion six hundred million dollars of general obligation bonds of the state of Washington. [2003 c 147 § 1.]
Effective date—2003 c 147: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2003."
[2003 c 147 § 16.]
47.10.862 Administration and amount of sale. Upon
the request of the transportation commission, as appropriate,
the state finance committee shall supervise and provide for
the issuance, sale, and retirement of the bonds in RCW
47.10.861 through 47.10.866 in accordance with chapter
39.42 RCW. Bonds authorized by RCW 47.10.861 through
47.10.866 shall be sold in the manner, at time or times, in
amounts, and at the price as the state finance committee shall
determine. No bonds may be offered for sale without prior
legislative appropriation of the net proceeds of the sale of the
bonds.
The state finance committee shall consider the issuance
of short-term obligations in lieu of long-term obligations for
the purposes of more favorable interest rates, lower total
interest costs, and increased marketability and for the purpose
of retiring the bonds during the life of the project for which
they were issued. [2003 c 147 § 2.]
47.10.862
Effective date—2003 c 147: See note following RCW 47.10.861.
47.10.863 Proceeds—Deposit and use. The proceeds
from the sale of bonds authorized by RCW 47.10.861 shall be
deposited in the transportation 2003 account (nickel account)
in the motor vehicle fund. The proceeds shall be available
only for the purposes enumerated in RCW 47.10.861, for the
payment of bond anticipation notes, if any, and for the payment of bond issuance costs, including the costs of underwriting. [2003 c 147 § 3.]
47.10.863
Effective date—2003 c 147: See note following RCW 47.10.861.
47.10.848
47.10.848 Equal charge against motor vehicle and
special fuels tax revenues. Bonds issued under the authority
of RCW 47.10.843 through 47.10.847 and this section and
any other general obligation bonds of the state of Washington
that have been or that may be authorized and that pledge
motor vehicle and special fuels excise taxes for the payment
of principal and interest thereon shall be an equal charge
against the revenues from such motor vehicle and special
fuels excise taxes. [1998 c 321 § 21 (Referendum Bill No.
49, approved November 3, 1998).]
Purpose—Severability—1998 c 321: See notes following RCW
82.14.045.
Effective dates—Application—1998 c 321 §§ 1-21, 44, and 45: See
note following RCW 82.14.045.
Referral to electorate—1998 c 321 §§ 1-21 and 44-46: See note following RCW 82.14.045.
2003 TRANSPORTATION PROJECTS—
NICKEL ACCOUNT
47.10.861
47.10.861 Bond issue authorized. In order to provide
funds necessary for the location, design, right of way, and
construction of selected projects or improvements that are
identified as transportation 2003 projects or improvements in
[Title 47 RCW—page 64]
47.10.864 Statement of general obligation—Pledge of
excise taxes. Bonds issued under the authority of RCW
47.10.861 through 47.10.866 shall distinctly state that they
are a general obligation of the state of Washington, shall
pledge the full faith and credit of the state to the payment of
the principal thereof and the interest thereon, and shall contain an unconditional promise to pay such principal and interest as the same shall become due. The principal and interest
on the bonds shall be first payable in the manner provided in
RCW 47.10.861 through 47.10.866 from the proceeds of the
state excise taxes on motor vehicle and special fuels imposed
by chapters 82.36 and 82.38 RCW. Proceeds of these excise
taxes are hereby pledged to the payment of any bonds and the
interest thereon issued under the authority of RCW 47.10.861
through 47.10.866, and the legislature agrees to continue to
impose these excise taxes on motor vehicle and special fuels
in amounts sufficient to pay, when due, the principal and
interest on all bonds issued under the authority of RCW
47.10.861 through 47.10.866. [2003 c 147 § 4.]
47.10.864
Effective date—2003 c 147: See note following RCW 47.10.861.
47.10.865 Repayment procedure—Bond retirement
fund. Both principal and interest on the bonds issued for the
47.10.865
(2004 Ed.)
Highway Construction Bonds
purposes of RCW 47.10.861 through 47.10.866 shall be payable from the highway bond retirement fund. The state
finance committee may provide that a special account be created in the fund to facilitate payment of the principal and
interest. The state finance committee shall, on or before June
30th of each year, certify to the state treasurer the amount
required for principal and interest on the bonds in accordance
with the bond proceedings. The state treasurer shall withdraw revenues from the transportation 2003 account (nickel
account) in the motor vehicle fund and deposit in the highway
bond retirement fund, or a special account in the fund, such
amounts, and at such times, as are required by the bond proceedings.
Any funds required for bond retirement or interest on the
bonds authorized by RCW 47.10.861 through 47.10.866 shall
be taken from that portion of the motor vehicle fund that
results from the imposition of excise taxes on motor vehicle
and special fuels and that is distributed to the transportation
2003 account (nickel account) in the motor vehicle fund.
Funds required shall never constitute a charge against any
other allocations of motor vehicle fuel and special fuel tax
revenues to the state, counties, cities, and towns unless the
amount arising from excise taxes on motor vehicle and special fuels distributed to the transportation 2003 account
(nickel account) proves insufficient to meet the requirements
for bond retirement or interest on any such bonds.
Any payments for bond retirement or interest on the
bonds taken from other revenues from the motor vehicle fuel
or special fuel taxes that are distributable to the state, counties, cities, and towns shall be repaid from the first revenues
from the motor vehicle fuel or special fuel taxes distributed to
the transportation 2003 account (nickel account) not required
for bond retirement or interest on the bonds. [2003 c 147 §
5.]
Effective date—2003 c 147: See note following RCW 47.10.861.
47.10.866
47.10.866 Equal charge against motor vehicle and
special fuels tax revenues. Bonds issued under the authority
of RCW 47.10.861 through 47.10.865 and this section and
any other general obligation bonds of the state of Washington
that have been or that may be authorized and that pledge
motor vehicle and special fuels excise taxes for the payment
of principal and interest thereon shall be an equal charge
against the revenues from such motor vehicle and special
fuels excise taxes. [2003 c 147 § 6.]
Effective date—2003 c 147: See note following RCW 47.10.861.
MULTIMODAL TRANSPORTATION PROJECTS—
2003 ACT
47.10.867
47.10.867 Bond issue authorized—Appropriation of
proceeds. For the purpose of providing funds for the planning, design, construction, reconstruction, and other necessary costs for transportation projects, the state finance committee is authorized to issue general obligation bonds of the
state of Washington in the sum of three hundred forty-nine
million five hundred thousand dollars, or as much thereof as
may be required, to finance these projects and all costs incidental thereto. Bonds authorized in this section may be sold
at such price as the state finance committee shall determine.
(2004 Ed.)
47.10.871
No bonds authorized in this section may be offered for sale
without prior legislative appropriation of the net proceeds of
the sale of the bonds. [2003 c 147 § 7.]
Effective date—2003 c 147: See note following RCW 47.10.861.
47.10.868
47.10.868 Proceeds—Deposit and use. The proceeds
of the sale of the bonds authorized in RCW 47.10.867 must
be deposited in the multimodal transportation account and
must be used exclusively for the purposes specified in RCW
47.10.867 and for the payment of expenses incurred in the
issuance and sale of the bonds. [2003 c 147 § 8.]
Effective date—2003 c 147: See note following RCW 47.10.861.
47.10.869
47.10.869 Repayment procedure. (1) The nondebtlimit reimbursable bond retirement account must be used for
the payment of the principal and interest on the bonds authorized in RCW 47.10.867.
(2)(a) The state finance committee must, on or before
June 30th of each year, certify to the state treasurer the
amount needed in the ensuing twelve months to meet the
bond retirement and interest requirements on the bonds
authorized in RCW 47.10.867.
(b) On or before the date on which any interest or principal and interest is due, the state treasurer shall transfer from
the multimodal transportation account for deposit into the
nondebt-limit reimbursable bond retirement account the
amount computed in (a) of this subsection for bonds issued
for the purposes of RCW 47.10.867.
(3) If the multimodal transportation account has insufficient revenues to pay the principal and interest computed in
subsection (2)(a) of this section, then the debt-limit reimbursable bond retirement account must be used for the payment of
the principal and interest on the bonds authorized in RCW
47.10.867 from any additional means provided by the legislature.
(4) If at any time the multimodal transportation account
has insufficient revenues to repay the bonds, the legislature
may provide additional means for the payment of the bonds.
[2003 c 147 § 9.]
Effective date—2003 c 147: See note following RCW 47.10.861.
47.10.870
47.10.870 Statement of general obligation—Transfer
and payment of funds. (1) Bonds issued under RCW
47.10.867 must state that they are a general obligation of the
state of Washington, must pledge the full faith and credit of
the state to the payment of the principal and interest, and must
contain an unconditional promise to pay the principal and
interest as it becomes due.
(2) The owner and holder of each of the bonds or the
trustee for the owner and holder of any of the bonds may by
mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section. [2003 c
147 § 10.]
Effective date—2003 c 147: See note following RCW 47.10.861.
47.10.871
47.10.871 Additional repayment means. The legislature may provide additional means for raising moneys for the
payment of the principal and interest on the bonds authorized
in RCW 47.10.867, and RCW 47.10.869 and 47.10.870 are
[Title 47 RCW—page 65]
47.10.872
Title 47 RCW: Public Highways and Transportation
not deemed to provide an exclusive method for their payment. [2003 c 147 § 11.]
Effective date—2003 c 147: See note following RCW 47.10.861.
47.10.872
47.10.872 Legal investment. The bonds authorized in
RCW 47.10.867 are a legal investment for all state funds or
funds under state control and for all funds of any other public
body. [2003 c 147 § 12.]
Effective date—2003 c 147: See note following RCW 47.10.861.
47.12.300
47.12.301
47.12.302
47.12.320
47.12.330
47.12.340
47.12.350
47.12.360
47.12.370
Sale of unneeded property—Department of transportation—
Authorized—Rules.
Sale of unneeded property—Department of transportation—
Certification to governor—Execution, delivery of deed.
Department of transportation—Sale of unneeded property.
Sale of property—Listing with broker.
Advanced environmental mitigation—Authorized.
Advanced environmental mitigation revolving account.
Advanced environmental mitigation—Site management—
Reimbursement of account.
Advanced environmental mitigation—Reports.
Environmental mitigation—Exchange agreements.
Acquisition of rights of way, city streets: RCW 47.24.030.
Chapter 47.12 RCW
ACQUISITION AND DISPOSITION OF STATE
HIGHWAY PROPERTY
Chapter 47.12
Sections
47.12.010
47.12.011
47.12.015
47.12.023
47.12.026
47.12.029
47.12.040
47.12.044
47.12.050
47.12.063
47.12.064
47.12.066
47.12.080
47.12.120
47.12.125
47.12.140
47.12.150
47.12.160
47.12.170
47.12.180
47.12.190
47.12.200
47.12.210
47.12.220
47.12.230
47.12.240
47.12.242
47.12.244
47.12.246
47.12.248
47.12.250
47.12.260
47.12.270
47.12.283
47.12.287
47.12.290
Acquisition of property authorized—Condemnation actions—
Cost.
Purchase options authorized.
"Reservation boundary" defined.
Acquisition of state lands or interests or rights therein—Procedures—Compensation—Reacquisition by department of natural resources.
Acquisition of state lands or interests or rights therein—Easements—Removal of materials—Relocation of railroad
tracks.
Acquisition of state lands or interests or rights therein—Certain purposes prohibited.
Acquisition of property from a political subdivision.
Proceedings to acquire property or rights for highway purposes—Precedence.
Work on remaining land as payment.
Surplus real property program.
Affordable housing—Inventory of suitable property.
Sale or lease of personal property—Provision of services—
Proceeds.
Sale or exchange of unused land.
Lease of unused highway land or air space.
Lease of unused highway land or air space—Disposition of
proceeds.
Severance and sale of timber and other personalty—Removal
of nonmarketable materials.
Acquisition, exchange of property to relocate displaced facility.
Acquisition of land outside highway right of way to minimize
damage.
Sale, lease of unneeded toll facility, ferry system property—
Franchises for utility, railway purposes.
Additional financing methods for property and engineering
costs—Formal declarations.
Additional financing methods for property and engineering
costs—Purchase or condemnation.
Additional financing methods for property and engineering
costs—Agreements with state finance committee.
Additional financing methods for property and engineering
costs—Warrants on motor vehicle fund.
Additional financing methods for property and engineering
costs—Mandatory, permissive, provisions in agreement.
Additional financing methods for property and engineering
costs—Warrant form and procedure.
Additional financing methods for property and engineering
costs—Payment procedure—Prior charge.
"Advance right of way acquisition" defined.
Advance right of way revolving fund.
Reimbursement to advance right of way revolving fund.
Structures acquired in advance of programmed construction—
Maintenance.
Acquisition of property for preservation, safety, buffer purposes.
Acquisition of real property subject to local improvement
assessments—Payment.
Acquisition of property for park and ride lots.
Sale of real property authorized—Procedure—Disposition of
proceeds.
Exchange of real property authorized—Conveyance by deed.
Sale of real property—Execution, acknowledgement, and
delivery of deed.
[Title 47 RCW—page 66]
47.12.010
47.12.010 Acquisition of property authorized—Condemnation actions—Cost. Whenever it is necessary to
secure any lands or interests in land for a right of way for any
state highway, or for the drainage thereof or construction of a
protection therefor or so as to afford unobstructed vision
therefor toward any railroad crossing or another public highway crossing or any point of danger to public travel or to provide a visual or sound buffer between highways and adjacent
properties or for the purpose of acquiring sand pits, gravel
pits, borrow pits, stone quarries, or any other land for the
extraction of materials for construction or maintenance or
both, or for any site for the erection upon and use as a maintenance camp, of any state highway, or any site for other necessary structures or for structures for the health and accommodation of persons traveling or stopping upon the state
highways of this state, or any site for the construction and
maintenance of structures and facilities adjacent to, under,
upon, within, or above the right of way of any state highway
for exclusive or nonexclusive use by an urban public transportation system, or for any other highway purpose, together
with right of way to reach such property and gain access
thereto, the department of transportation is authorized to
acquire such lands or interests in land in behalf of the state by
gift, purchase, or condemnation. In case of condemnation to
secure such lands or interests in land, the action shall be
brought in the name of the state of Washington in the manner
provided for the acquiring of property for the public uses of
the state, and in such action the selection of the lands or interests in land by the secretary of transportation shall, in the
absence of bad faith, arbitrary, capricious, or fraudulent
action, be conclusive upon the court and judge before which
the action is brought that said lands or interests in land are
necessary for public use for the purposes sought. The cost
and expense of such lands or interests in land may be paid as
a part of the cost of the state highway for which such right of
way, drainage, unobstructed vision, sand pits, gravel pits,
borrow pits, stone quarries, maintenance camp sites, and
structure sites or other lands are acquired. [1977 ex.s. c 151
§ 46; 1967 c 108 § 4; 1961 c 13 § 47.12.010. Prior: 1937 c 53
§ 25, part; RRS § 6400-25, part.]
Urban public transportation system defined: RCW 47.04.082.
Right of way donations: Chapter 47.14 RCW.
47.12.011
47.12.011 Purchase options authorized. Whenever it
becomes necessary or feasible to purchase rights of way for
state highways, and the department deems it to be in the best
interest of the general public, the department may secure
options for purchase of property needed or proposed for any
entire project or section thereof or proposed alignment for the
(2004 Ed.)
Acquisition and Disposition of State Highway Property
location or relocation of any highway. [1984 c 7 § 114; 1961
c 13 § 47.12.011. Prior: 1955 c 49 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.12.015
47.12.015 "Reservation boundary" defined. For the
purposes of this chapter "reservation boundary" means the
boundary of the reservation as established by federal law or
under the authority of the United States Secretary of the Interior. [2002 c 255 § 2.]
47.12.023
47.12.023 Acquisition of state lands or interests or
rights therein—Procedures—Compensation—Reacquisition by department of natural resources. (1) Except as
provided in RCW 47.12.026 and 47.12.029, whenever it is
necessary to secure any lands or interests in lands for any
highway purpose mentioned in RCW 47.12.010, or for the
construction of any toll facility or ferry terminal or docking
facility, the title to which is in the state of Washington and
under the jurisdiction of the department of natural resources,
the department of transportation may acquire jurisdiction
over the lands or interests in lands, or acquire rights to
remove materials from the lands in the manner set forth in
this section.
(2) At any time after the final adoption of a right of way
plan or other plan requiring the acquisition of lands or interests in lands for any purpose as authorized in subsection (1)
of this section, the department of transportation may file with
the department of natural resources a notice setting forth its
intent to acquire jurisdiction of the lands or interests in lands
under the jurisdiction of the department of natural resources
required for right of way or other highway purposes related to
the construction or improvement of such state highway, toll
facility, or ferry terminal or docking facility.
(3) The department of transportation at the time of filing
its notice of intent as provided in subsection (2) of this section shall file therewith a written statement showing the total
amount of just compensation to be paid for the property in the
event of settlement. The offer shall be based upon the department of transportation approved appraisal of the fair market
value of the property to be acquired. In no event may the offer
of settlement be referred to or used during any arbitration
proceeding or trial conducted for the purpose of determining
the amount of just compensation.
(4) Just compensation and/or fair market value for the
purposes of this section shall be determined in accordance
with applicable federal and state constitutional, statutory, and
case law relating to the condemnation of private and public
property for public purposes.
(5) If the department of natural resources does not accept
the offer of the department of transportation, the department
of transportation may nonetheless pay to the department of
natural resources the amount of its offer and obtain immediate possession and use of the property pending the determination of just compensation in the manner hereinafter provided.
(6) If the amount of just compensation is not agreed to,
either the department of natural resources or the department
of transportation may request in writing the appointment of
an arbitrator for the purpose of determining the amount of
compensation to be paid by the department of transportation
for the acquisition of jurisdiction over the lands or interests in
(2004 Ed.)
47.12.026
lands or rights therein. In that event the department of natural
resources and the department of transportation may jointly
agree on an arbitrator to determine the compensation, and his
determination shall be final and conclusive upon both departments. The costs of the arbitrator shall be borne equally by
the parties. If the department of natural resources and the
department of transportation are unable to agree on the selection of an arbitrator within thirty days after a request therefor
is made, either the department of transportation or the department of natural resources may file a petition with the superior
court for Thurston county for the purpose of determining the
amount of just compensation to be paid. The matter shall be
tried by the court pursuant to the procedures set forth in RCW
8.04.080.
(7) Whenever the department of transportation has
acquired immediate possession and use of property by payment of the amount of its offer to the department of natural
resources, and the arbitration award or judgment of the court
for the acquisition exceeds the payment for immediate possession and use, the department of transportation shall forthwith pay the amount of such excess to the department of natural resources with interest thereon from the date it obtained
immediate possession. If the arbitration or court award is less
than the amount previously paid by the department of transportation for immediate possession and use, the department
of natural resources shall forthwith pay the amount of the difference to the department of transportation.
(8) Upon the payment of just compensation, as agreed to
by the department of transportation and the department of
natural resources, or as determined by arbitration or by judgment of the court, and other costs or fees as provided by statute, the department of natural resources shall cause to be executed and delivered to the department of transportation an
instrument transferring jurisdiction over the lands or interests
in lands, or rights to remove material from the lands, to the
department of transportation.
(9) Except as provided in RCW 47.12.026, whenever the
department of transportation ceases to use any lands or interests in lands acquired in the manner set forth in this section
for the purposes mentioned herein, the department of natural
resources may reacquire jurisdiction over the lands or interests in land by paying the fair market value thereof to the
department of transportation. If the two departments are
unable to agree on the fair market value of the lands or interests in lands, the market value shall be determined and the
interests therein shall be transferred in accordance with the
provisions and procedures set forth in subsections (4) through
(8) of this section. [1984 c 7 § 115; 1977 ex.s. c 103 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.12.026
47.12.026 Acquisition of state lands or interests or
rights therein—Easements—Removal of materials—
Relocation of railroad tracks. (1) The department of transportation may acquire an easement for highway or toll facilities right of way or for ferry terminal or docking facilities,
including the right to make necessary fills, on, over, or across
the beds of navigable waters which are under the jurisdiction
of the department of natural resources, in accordance with the
provisions of RCW 47.12.023, except that no charge may be
[Title 47 RCW—page 67]
47.12.029
Title 47 RCW: Public Highways and Transportation
made to the department of transportation for such an easement.
(2) The department of transportation may obtain an easement for highway or toll facilities purposes or for ferry terminal or docking facilities on, over, or across harbor areas in
accordance with RCW 47.12.023 but only when the areas are
approved by the harbor line commission as a public place for
public landings, wharves, or other public conveniences of
commerce or navigation. No charge may be made to the
department of transportation for such an easement.
(3) Upon the selection by the department of transportation of an easement for highway or toll facilities right of way
or for ferry terminal or docking facilities, as authorized in
subsections (1) and (2) of this section, the department of natural resources shall cause to be executed and delivered to the
department of transportation an instrument transferring the
easement. Whenever the state no longer requires the easement for highway or toll facilities right of way or for ferry terminal or docking facilities, the easement shall automatically
terminate and the department of transportation shall, upon
request, cause to be executed an instrument relinquishing to
the department of natural resources all of its interest in the
lands.
(4) The department of transportation, pursuant to the
procedures set forth in RCW 47.12.023, may remove sand
and gravel and borrow materials and stone from the beds of
navigable waters under the jurisdiction of the department of
natural resources which lie below the line of ordinary high
water upon the payment of fair market value per cubic yard
for such materials to be determined in the manner set forth in
RCW 47.12.023.
(5) The department of transportation may acquire full
jurisdiction over lands under the jurisdiction of the department of natural resources including the beds of navigable
waters that are required for the relocation of the operating
tracks of any railroad that will be displaced by the acquisition
of such railroad property for state highway purposes. The
department of transportation may exchange lands so acquired
in consideration or partial consideration for the land or property rights needed for highway purposes and may cause to be
executed a conveyance of the lands in the manner prescribed
in RCW 47.12.150. In that event the department of transportation shall pay to the department of natural resources, as just
compensation for the acquisition, the fair market value of the
property, including the beds of any navigable waters, to be
determined in accordance with procedures set forth in RCW
47.12.023. [1984 c 7 § 116; 1977 ex.s. c 103 § 2.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.12.029
47.12.029 Acquisition of state lands or interests or
rights therein—Certain purposes prohibited. The department of transportation shall not acquire jurisdiction of any
lands or interest in lands under the jurisdiction of the department of natural resources for any of the purposes set forth in
RCW 47.12.150, 47.12.160, 47.12.180, 47.12.250, and
47.12.270. [1984 c 7 § 117; 1977 ex.s. c 103 § 3.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.12.040
47.12.040 Acquisition of property from a political
subdivision. Whenever it is necessary to secure any lands
[Title 47 RCW—page 68]
for primary or secondary state highway right of way or other
state highway purposes, the title to which is in any county of
the state or in any political or municipal subdivision of the
state, which land is not at the time being used as a public
highway, the county legislative authority or the board of
directors or governing body of any such political or municipal subdivision are authorized to directly lease, sell, or convey by gift the land or any interest therein to the state of
Washington, without requiring competitive bids or notice to
the public, and at such price as the legislative authority, directors, or governing body may deem for the best interests of the
county or for the best interests of the political or municipal
subdivision of the state. The county legislative authority or
the directors or governing body of any political or municipal
subdivision are empowered to execute a deed or other proper
instrument to the land, passing title to the state of Washington, and the instrument need not require consideration other
than the benefit which may be derived by the grantor on
account of the use thereof. Whenever any state highway is
established by legislative enactment and the state highway is
upon the former route of a county road, the county legislative
authority shall cause the title to the existing right of way or so
much thereof as the department requires to be transferred to
the state of Washington by proper instrument. [1984 c 7 §
118; 1961 c 13 § 47.12.040. Prior: 1943 c 266 § 1; 1937 c 53
§ 26; Rem. Supp. 1943 § 6400-26.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.12.044
47.12.044 Proceedings to acquire property or rights
for highway purposes—Precedence. Court proceedings
necessary to acquire property or property rights for highway
purposes pursuant to RCW 47.12.010 take precedence over
all other causes not involving the public interest in all courts
in cases where the state is unable to secure an order granting
it immediate possession and use of the property or property
rights pursuant to RCW 8.04.090 through 8.04.094. [1983 c
140 § 2.]
47.12.050
47.12.050 Work on remaining land as payment.
Whenever it is considered in the securing of any lands for
state highway purpose, whether by condemnation or otherwise, that it is for the best interest of the state, for specific
constructural items of damage claimed, the court or judge
may order or the person whose lands are sought may agree
that a portion or all work or labor necessary to the land or
remaining land by reason of the taking by way of damage, be
performed by the state through the department as all or a part
of the consideration or satisfaction of the judgment therefor,
in which event the department may perform the work as a
portion of the right of way cost of the state highway. [1984 c
7 § 119; 1961 c 13 § 47.12.050. Prior: 1937 c 53 § 27; RRS
§ 6400-27.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.12.063
47.12.063 Surplus real property program. (1) It is the
intent of the legislature to continue the department's policy
giving priority consideration to abutting property owners in
agricultural areas when disposing of property through its surplus property program under this section.
(2004 Ed.)
Acquisition and Disposition of State Highway Property
(2) Whenever the department determines that any real
property owned by the state of Washington and under the
jurisdiction of the department is no longer required for transportation purposes and that it is in the public interest to do so,
the department may sell the property or exchange it in full or
part consideration for land or improvements or for construction of improvements at fair market value to any of the following governmental entities or persons:
(a) Any other state agency;
(b) The city or county in which the property is situated;
(c) Any other municipal corporation;
(d) Regional transit authorities created under chapter
81.112 RCW;
(e) The former owner of the property from whom the
state acquired title;
(f) In the case of residentially improved property, a tenant of the department who has resided thereon for not less
than six months and who is not delinquent in paying rent to
the state;
(g) Any abutting private owner but only after each other
abutting private owner (if any), as shown in the records of the
county assessor, is notified in writing of the proposed sale. If
more than one abutting private owner requests in writing the
right to purchase the property within fifteen days after receiving notice of the proposed sale, the property shall be sold at
public auction in the manner provided in RCW 47.12.283;
(h) To any person through the solicitation of written bids
through public advertising in the manner prescribed by RCW
47.28.050;
(i) To any other owner of real property required for transportation purposes;
(j) In the case of property suitable for residential use, any
nonprofit organization dedicated to providing affordable
housing to very low-income, low-income, and moderateincome households as defined in RCW 43.63A.510 and is eligible to receive assistance through the Washington housing
trust fund created in chapter 43.185 RCW; or
(k) A federally recognized Indian tribe within whose reservation boundary the property is located.
(3) Sales to purchasers may at the department's option be
for cash, by real estate contract, or exchange of land or
improvements. Transactions involving the construction of
improvements must be conducted pursuant to chapter 47.28
RCW or Title 39 RCW, as applicable, and must comply with
all other applicable laws and rules.
(4) Conveyances made pursuant to this section shall be
by deed executed by the secretary of transportation and shall
be duly acknowledged.
(5) All moneys received pursuant to the provisions of
this section less any real estate broker commissions paid pursuant to RCW 47.12.320 shall be deposited in the motor vehicle fund. [2002 c 255 § 1; 1999 c 210 § 1; 1993 c 461 § 11;
1988 c 135 § 1; 1983 c 3 § 125; 1977 ex.s. c 78 § 1.]
Finding—1993 c 461: See note following RCW 43.63A.510.
47.12.064
47.12.064 Affordable housing—Inventory of suitable
property. (1) The department shall identify and catalog real
property that is no longer required for department purposes
and is suitable for the development of affordable housing for
very low-income, low-income, and moderate-income house(2004 Ed.)
47.12.120
holds as defined in RCW 43.63A.510. The inventory shall
include the location, approximate size, and current zoning
classification of the property. The department shall provide a
copy of the inventory to the department of community, trade,
and economic development by November 1, 1993, and every
November 1 thereafter.
(2) By November 1 of each year, beginning in 1994, the
department shall purge the inventory of real property of sites
that are no longer available for the development of affordable
housing. The department shall include an updated listing of
real property that has become available since the last update.
As used in this section, "real property" means buildings, land,
or buildings and land. [1995 c 399 § 121; 1993 c 461 § 10.]
Finding—1993 c 461: See note following RCW 43.63A.510.
47.12.066
47.12.066 Sale or lease of personal property—Provision of services—Proceeds. (1) The department may sell at
fair market value, or lease at rental value (economic rent),
materials or other personal property to any United States
agency or to any municipal corporation, political subdivision,
or another agency of the state and may provide services to
any United States agency or to any municipal corporation,
political subdivision, or another agency of the state at actual
cost, including a reasonable amount for indirect costs.
(2) The department may sell at fair market value materials or other personal property to any private utility company
regulated by the utilities and transportation commission for
the purpose of making emergency repairs to utility facilities
or to protect such facilities from imminent damage upon a
finding in writing by the secretary that an emergency exists.
(3) The proceeds of all sales and leases under this section
shall be placed in the motor vehicle fund. [1984 c 7 § 120;
1977 ex.s. c 78 § 2.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.12.080
47.12.080 Sale or exchange of unused land. The secretary of transportation may transfer and convey to the
United States, its agencies or instrumentalities, to any other
state agency, to any county or city or port district of this state,
or to any public utility company, any unused state-owned real
property under the jurisdiction of the department of transportation when, in the judgment of the secretary of transportation
and the attorney general, the transfer and conveyance is consistent with public interest. Whenever the secretary makes an
agreement for any such transfer or conveyance, and the attorney general concurs therein, the secretary shall execute and
deliver unto the grantee a deed of conveyance, easement, or
other instrument, duly acknowledged, as shall be necessary to
fulfill the terms of the aforesaid agreement. All moneys paid
to the state of Washington under any of the provisions hereof
shall be deposited in the motor vehicle fund. [1984 c 7 § 121.
Prior: 1977 ex.s. c 151 § 49; 1977 ex.s. c 78 § 5; 1975 1st
ex.s. c 96 § 3; 1961 c 13 § 47.12.080; prior: 1945 c 127 § 1;
Rem. Supp. 1945 § 6400-120.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.12.120
47.12.120 Lease of unused highway land or air space.
The department may rent or lease any lands, improvements,
or air space above or below any lands that are held for high[Title 47 RCW—page 69]
47.12.125
Title 47 RCW: Public Highways and Transportation
way purposes but are not presently needed. The rental or
lease:
(1) Must be upon such terms and conditions as the
department may determine;
(2) Is subject to the provisions and requirements of zoning ordinances of political subdivisions of government;
(3) Includes lands used or to be used for both limited
access and conventional highways that otherwise meet the
requirements of this section; and
(4) In the case of bus shelters provided by a local transit
authority that include commercial advertising, may charge
the transit authority only for commercial space. [2003 c 198
§ 2; 1977 ex.s. c 151 § 50; 1969 c 91 § 1; 1961 c 13 §
47.12.120. Prior: 1949 c 162 § 1; Rem. Supp. 1949 § 6400122.]
47.12.125 Lease of unused highway land or air
space—Disposition of proceeds. All moneys paid to the
state of Washington under any of the provisions of RCW
47.12.120 shall be deposited in the department's advance
right of way revolving fund, except moneys that are subject
to federal aid reimbursement and moneys received from
rental of capital facilities properties, which shall be deposited
in the motor vehicle fund. [1999 c 94 § 15; 1991 c 291 § 3;
1961 c 13 § 47.12.125. Prior: 1949 c 162 § 2; Rem. Supp.
1949 § 6400-123.]
47.12.125
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
47.12.140 Severance and sale of timber and other
personalty—Removal of nonmarketable materials.
Whenever the department has acquired any lands for transportation purposes, except state granted lands, upon which
are located any structures, timber, or other thing of value
attached to the land that the department deems it best to sever
from the land and sell as personal property, the same may be
disposed of by one of the following means:
(1) The department may sell the personal property at
public auction after due notice has been given in accordance
with general rules adopted by the secretary. The department
may set minimum prices that will be accepted for any item
offered for sale at public auction as provided in this section
and may prescribe terms or conditions of sale. If an item is
offered for sale at the auction and no satisfactory bids are
received or the amount bid is less than the minimum set by
the department, the department may sell the item at private
sale for the best price that it deems obtainable, but not less
than the highest price bid at the public auction. The proceeds
of all sales under this section must be placed in the motor
vehicle fund.
(2) The department may issue permits to residents of this
state to remove specified quantities of standing or downed
trees and shrubs, rock, sand, gravel, or soils that have no market value in place and that the department desires to be
removed from state-owned lands that are under the jurisdiction of the department. An applicant for a permit must certify
that the materials so removed are to be used by the applicant
and that they will not be disposed of to any other person.
Removal of materials under the permit must be in accordance
with rules adopted by the department. The fee for a permit is
two dollars and fifty cents, which fee must be deposited in the
47.12.140
[Title 47 RCW—page 70]
motor vehicle fund. The department may adopt rules providing for special access to limited access facilities for the purpose of removal of materials under permits authorized in this
section.
(3) The department may sell timber or logs to an abutting
landowner for cash at full appraised value, but only after each
other abutting owner (if any), as shown in the records of the
county assessor, is notified in writing of the proposed sale. If
more than one abutting owner requests in writing the right to
purchase the timber within fifteen days after receiving notice
of the proposed sale, the timber must be sold in accordance
with subsection (1) of this section.
(4) The department may sell timber or logs having an
appraised value of one thousand dollars or less directly to
interested parties for cash at the full appraised value without
notice or advertising. If the timber is attached to state-owned
land, the department shall issue a permit to the purchaser of
the timber to allow for the removal of the materials from state
land. The permit fee is two dollars and fifty cents. [1997 c
240 § 1; 1981 c 260 § 12. Prior: 1977 ex.s. c 151 § 52; 1977
ex.s. c 78 § 6; 1961 c 13 § 47.12.140; prior: 1953 c 42 § 1.]
47.12.150
47.12.150 Acquisition, exchange of property to relocate displaced facility. Whenever the department shall need
for highway purposes land or property rights belonging to the
United States government or any municipality or political
subdivision of the state, or which shall be a part of the right of
way of any public utility having authority to exercise powers
of eminent domain, when the acquisition of such property by
the state will result in the displacement of any existing right
of way or facility, the department is authorized to acquire by
condemnation or otherwise such lands and property rights as
shall be needed to relocate such right of way or facilities so
displaced and to exchange lands or property rights so
acquired in consideration or partial consideration for the land
or property rights needed for highway purposes. The secretary of transportation shall execute each conveyance, which
shall be duly acknowledged, necessary to accomplish such
exchange. [1977 ex.s. c 151 § 53; 1975 1st ex.s. c 96 § 5;
1961 c 13 § 47.12.150. Prior: 1953 c 55 § 1.]
47.12.160
47.12.160 Acquisition of land outside highway right
of way to minimize damage. Whenever a part of a parcel of
land is to be acquired for state highway purposes and the
remainder lying outside of the right of way is to be left in
such shape or condition as to be of little value to its owner or
to give rise to claims or litigation concerning severance or
other damage, and its value does not exceed the probable
amount of the severance claims or damages, the department
may acquire by gift, purchase, or condemnation the whole
parcel and may sell that portion lying outside of the highway
right of way or may exchange the same for other property
needed for highway purposes. The provisions of this section
do not apply if the taking of that portion of the land lying outside of the highway right of way would deprive any adjacent
owner of an existing right of ingress and egress to his property. [1984 c 7 § 122; 1961 c 13 § 47.12.160. Prior: 1953 c
131 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
(2004 Ed.)
Acquisition and Disposition of State Highway Property
47.12.170
47.12.170 Sale, lease of unneeded toll facility, ferry
system property—Franchises for utility, railway purposes. See RCW 47.56.253 through 47.56.257.
47.12.180
47.12.180 Additional financing methods for property
and engineering costs—Formal declarations. It is
declared to be the public policy of the state of Washington to
provide for the acquisition of real property and engineering
costs necessary for the improvement of the state highway
system, in advance of actual construction, for the purposes of
eliminating costly delays in construction, reducing hardship
to owners of the property, and eliminating economic waste
occasioned by the improvement of such property immediately prior to its acquisition for highway uses.
The legislature therefore finds and declares that purchase
and condemnation of real property necessary for the state
highway system and engineering costs, reasonably in
advance of programmed construction, is a public use and purpose and a highway purpose.
The department is hereby authorized to purchase or condemn any real property or property rights therein which it
deems will be necessary for the improvement of routes on the
state highway system by the method provided in RCW
47.12.180 through 47.12.240 or alternatively by the method
provided in RCW 47.12.242 through 47.12.246. Neither
method may be used to condemn property or property rights
in advance of programmed construction until the department
has complied with hearing procedures required for the location or relocation of the type of highway for which the property is to be condemned. [1984 c 7 § 123; 1969 ex.s. c 197 §
1; 1961 c 281 § 1.]
47.12.220
state highway system. Such agreements may provide for the
acquisition of an individual parcel or for the acquisition of
any number of parcels within the limits of a contemplated
highway project. [1977 ex.s. c 151 § 55; 1969 ex.s. c 197 §
2; 1961 c 281 § 3.]
Severability—1961 c 281: See note following RCW 47.12.180.
47.12.210
47.12.210 Additional financing methods for property
and engineering costs—Warrants on motor vehicle fund.
Such an agreement shall provide that the state finance committee shall purchase, at par, warrants drawn upon the motor
vehicle fund in payment for the property covered by the
agreement and the engineering costs necessary for such
advance purchase or condemnation. Such warrants shall be
purchased by the state finance committee, upon the presentation by the holders thereof to the state treasurer, from any
moneys available for investment in the state treasury as provided in RCW 43.84.080: PROVIDED, That in no event
shall more than ten percent of the assets of any fund be used
for the purpose of acquiring property as authorized herein,
except in the case of current state funds in the state treasury,
twenty percent of the balance therein available for investment
may be invested as provided in RCW 47.12.180 through
47.12.240. [1981 c 3 § 38; 1969 ex.s. c 197 § 3; 1961 c 281
§ 4.]
Effective dates—Severability—1981 c 3: See notes following RCW
43.33A.010.
Severability—1961 c 281: See note following RCW 47.12.180.
Authorization that certain funds may be invested in motor vehicle fund warrants: RCW 43.84.080.
Severability—1984 c 7: See note following RCW 47.01.141.
Severability—1961 c 281: "If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act,
or the application of the provision to other persons or circumstances is not
affected." [1961 c 281 § 12.]
47.12.190
47.12.190 Additional financing methods for property
and engineering costs—Purchase or condemnation. The
department, in addition to its other powers and duties as provided by law, is authorized to purchase or condemn any real
property or property rights therein which it deems will be
necessary for the improvements of routes on the state highway system by the method provided in RCW 47.12.180
through 47.12.240. Condemnation actions brought hereunder
shall be brought in the name of the state as provided for
acquiring property for the public uses of the state, and in such
actions selection of the property and property rights by the
secretary of transportation is conclusive that they are necessary for the purposes sought, in the absence of bad faith, or
arbitrary, capricious, or fraudulent action. [1977 ex.s. c 151
§ 54; 1961 c 281 § 2.]
Severability—1961 c 281: See note following RCW 47.12.180.
47.12.200
47.12.200 Additional financing methods for property
and engineering costs—Agreements with state finance
committee. The transportation commission may enter into
agreements with the state finance committee for financing the
acquisition, by purchase or condemnation, of real property
together with engineering costs that the transportation commission deems will be necessary for the improvement of the
(2004 Ed.)
47.12.220
47.12.220 Additional financing methods for property
and engineering costs—Mandatory, permissive, provisions in agreement. Each such agreement shall include, but
shall not be limited to the following:
(1) A provision stating the term of the agreement which
shall not extend more than seven years from the effective date
of the agreement;
(2) A designation of the specific fund or funds to be used
to carry out such agreement;
(3) A provision that the department of transportation
may redeem warrants purchased by the state finance committee at any time prior to the letting of a highway improvement
contract utilizing the property; and further, during the effective period of each such agreement the department of transportation shall redeem such warrants whenever such a highway improvement contract is let, or upon the expiration of
such agreement, whichever date is earlier;
(4) A provision stating the rate of interest such warrants
shall bear commencing at the time of purchase by the state
finance committee;
(5) Any additional provisions agreed upon by the transportation commission and the state finance committee which
are necessary to carry out the purposes of such agreement as
indicated by RCW 47.12.180 through 47.12.240, as now or
hereafter amended. [1977 ex.s. c 151 § 56; 1969 ex.s. c 197
§ 4; 1961 c 281 § 5.]
Severability—1961 c 281: See note following RCW 47.12.180.
[Title 47 RCW—page 71]
47.12.230
Title 47 RCW: Public Highways and Transportation
47.12.230
47.12.230 Additional financing methods for property
and engineering costs—Warrant form and procedure.
Warrants issued for payment of property and engineering
costs as provided herein shall be of a distinctive design and
shall contain the words "for purchase by the state finance
committee from . . . . fund" (indicating the proper investing
fund as provided by the agreement). Such warrants shall be
approved by the secretary of the state finance committee prior
to their issuance by the state treasurer. Upon presentation of
such warrants to the state treasurer for payment, he shall pay
the par value thereof from the fund for which the state finance
committee agreed to purchase such warrants whether or not
there are then funds in the motor vehicle fund. The state treasurer shall deposit such warrants in the treasury for the
investing fund. [1969 ex.s. c 197 § 5; 1961 c 281 § 6.]
Severability—1961 c 281: See note following RCW 47.12.180.
47.12.240
47.12.240 Additional financing methods for property
and engineering costs—Payment procedure—Prior
charge. The state treasurer shall transfer from the motor
vehicle fund to the credit of the fund purchasing such warrants interest at the rate and at the times provided for in the
agreement. The state treasurer shall pay the warrants at the
time provided for in the agreement. The obligations coming
due are a prior charge against any funds in the motor vehicle
fund available to the department for construction of state
highways. [1984 c 7 § 124; 1961 c 281 § 7.]
Severability—1984 c 7: See note following RCW 47.01.141.
Severability—1961 c 281: See note following RCW 47.12.180.
47.12.242
47.12.242 "Advance right of way acquisition"
defined. The term "advance right of way acquisition" means
the acquisition of property and property rights, generally not
more than ten years in advance of programmed highway construction projects, together with the engineering costs necessary for such advance right of way acquisition. Any property
or property rights purchased must be in designated highway
transportation corridors and be for projects approved by the
commission as part of the state's six-year plan or included in
the state's route development planning effort. [1991 c 291 §
1; 1969 ex.s. c 197 § 6.]
*Reviser's note: Chapter 47.13 RCW was repealed by 1999 c 94 § 33,
effective July 1, 1999.
Severability—1984 c 7: See note following RCW 47.01.141.
47.12.246
47.12.246 Reimbursement to advance right of way
revolving fund. (1) After any properties or property rights
are acquired from funds in the advance right of way revolving
fund, the department shall manage the properties in accordance with sound business practices. Funds received from
interim management of the properties shall be deposited in
the advance right of way revolving fund.
(2) When the department proceeds with the construction
of a highway which will require the use of any of the property
so acquired, the department shall reimburse the advance right
of way revolving fund, from other funds available to it, the
current appraised value of the property or property rights
required for the project together with damages caused to the
remainder by the acquisition after offsetting against all such
compensation and damages the special benefits, if any, accruing to the remainder by reason of the state highway being
constructed.
(3) When the department determines that any properties
or property rights acquired from funds in the advance right of
way revolving fund will not be required for a highway construction project the department may sell the property at fair
market value in accordance with requirements of RCW
47.12.063. All proceeds of such sales shall be deposited in
the advance right of way revolving fund.
(4) Deposits in the fund may be reexpended as provided
in RCW 47.12.180, 47.12.200 through 47.12.230, and
47.12.242 through 47.12.248 without further or additional
appropriations. [1991 c 291 § 4; 1984 c 7 § 126; 1969 ex.s. c
197 § 9.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.12.248
47.12.248 Structures acquired in advance of programmed construction—Maintenance. Whenever the
department purchases or condemns any property under RCW
47.12.180 through 47.12.240 or 47.12.242 through
47.12.246, the department shall cause any structures so
acquired and not removed within a reasonable time to be
maintained in good appearance. [1984 c 7 § 127; 1969 ex.s.
c 197 § 10.]
47.12.244
47.12.244 Advance right of way revolving fund.
There is created the "advance right of way revolving fund" in
the custody of the treasurer, into which the department is
authorized to deposit directly and expend without appropriation:
(1) An initial deposit of ten million dollars from the
motor vehicle fund included in the department of transportation's 1991-93 budget;
(2) All moneys received by the department as rental
income from real properties that are not subject to federal aid
reimbursement, except moneys received from rental of capital facilities properties as defined in *chapter 47.13 RCW;
and
(3) Any federal moneys available for acquisition of right
of way for future construction under the provisions of section
108 of Title 23, United States Code. [1991 c 291 § 2; 1984 c
7 § 125; 1969 ex.s. c 197 § 7.]
[Title 47 RCW—page 72]
Severability—1984 c 7: See note following RCW 47.01.141.
47.12.250
47.12.250 Acquisition of property for preservation,
safety, buffer purposes. The department is authorized to
acquire by purchase, lease, condemnation, gift, devise,
bequest, grant, or exchange, title to or any interests or rights
in real property adjacent to state highways for the preservation of natural beauty, historic sites or viewpoints or for
safety rest areas or to provide a visual or sound buffer
between highways and adjacent properties. However, the
department shall not acquire, by condemnation, less than an
owner's entire interest for providing a visual or sound buffer
between highways and adjacent properties under RCW
47.12.010 and 47.12.250 if the owner objects to the taking of
a lesser interest or right. [1984 c 7 § 128; 1967 c 108 § 5;
1965 ex.s. c 170 § 62.]
Severability—1984 c 7: See note following RCW 47.01.141.
(2004 Ed.)
Acquisition and Disposition of State Highway Property
Roadside areas—Safety rest areas: Chapter 47.38 RCW.
Scenic and Recreational Highway Act: Chapter 47.39 RCW.
47.12.260
47.12.260 Acquisition of real property subject to
local improvement assessments—Payment. See RCW
79.44.190.
47.12.270
47.12.270 Acquisition of property for park and ride
lots. The department may acquire real property or interests in
real property by gift, purchase, lease, or condemnation and
may construct and maintain thereon fringe and transportation
corridor parking facilities to serve motorists transferring to or
from urban public transportation vehicles or private car pool
vehicles. The department may obtain and exercise options for
the purchase of property to be used for purposes described in
this section. The department shall not expend any funds for
acquisition or construction costs of any parking facility to be
operated as a part of a transit system by a metropolitan
municipal corporation unless the facility has been approved
by the department in advance of its acquisition or construction. [1984 c 7 § 129; 1973 2nd ex.s. c 18 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.12.283
47.12.283 Sale of real property authorized—Procedure—Disposition of proceeds. (1) Whenever the department of transportation determines that any real property
owned by the state of Washington and under the jurisdiction
of the department is no longer required for highway purposes
and that it is in the public interest to do so, the department
may, in its discretion, sell the property under RCW 47.12.063
or under subsections (2) through (6) of this section.
(2) Whenever the department determines to sell real
property under its jurisdiction at public auction, the department shall first give notice thereof by publication on the same
day of the week for two consecutive weeks, with the first
publication at least two weeks prior to the date of the auction,
in a legal newspaper of general circulation in the area where
the property to be sold is located. The notice shall be placed
in both the legal notices section and the real estate classified
section of the newspaper. The notice shall contain a description of the property, the time and place of the auction, and the
terms of the sale. The sale may be for cash or by real estate
contract.
(3) The department shall sell the property at the public
auction, in accordance with the terms set forth in the notice,
to the highest and best bidder providing the bid is equal to or
higher than the appraised fair market value of the property.
(4) If no bids are received at the auction or if all bids are
rejected, the department may, in its discretion, enter into
negotiations for the sale of the property or may list the property with a licensed real estate broker. No property shall be
sold by negotiations or through a broker for less than the
property's appraised fair market value. Any offer to purchase
real property pursuant to this subsection shall be in writing
and may be rejected at any time prior to written acceptance
by the department.
(5) Before the department shall approve any offer for the
purchase of real property having an appraised value of more
than ten thousand dollars, pursuant to subsection (4) of this
section, the department shall first publish a notice of the pro(2004 Ed.)
47.12.290
posed sale in a local newspaper of general circulation in the
area where the property is located. The notice shall include a
description of the property, the selling price, the terms of the
sale, including the price and interest rate if sold by real estate
contract, and the name and address of the department
employee or the real estate broker handling the transaction.
The notice shall further state that any person may, within ten
days after the publication of the notice, deliver to the designated state employee or real estate broker a written offer to
purchase the property for not less than ten percent more than
the negotiated sale price, subject to the same terms and conditions. A subsequent offer shall not be considered unless it is
accompanied by a deposit of twenty percent of the offer in the
form of cash, money order, cashiers check, or certified check
payable to the Washington state treasurer, to be forfeited to
the state (for deposit in the motor vehicle fund) if the offeror
fails to complete the sale if the offeror's offer is accepted. If a
subsequent offer is received, the first offeror shall be
informed by registered or certified mail sent to the address
stated in his offer. The first offeror shall then have ten days,
from the date of mailing the notice of the increased offer, in
which to file with the designated state employee or real estate
broker a higher offer than that of the subsequent offeror.
After the expiration of the ten day period, the department
shall approve in writing the highest and best offer which the
department then has on file.
(6) All moneys received pursuant to this section, less any
real estate broker's commissions paid pursuant to RCW
47.12.320, shall be deposited in the motor vehicle fund.
[1979 ex.s. c 189 § 1.]
Effective date—1979 ex.s. c 189: "This 1979 act is necessary for the
immediate preservation of the public peace, health, and safety, the support of
the state government and its existing public institutions, and shall take effect
July 1, 1979." [1979 ex.s. c 189 § 8.]
47.12.287
47.12.287 Exchange of real property authorized—
Conveyance by deed. The department of transportation is
hereby authorized to enter into an exchange agreement with
the owner of real property required for highway purposes to
convey to such owner real property, owned by the state and
under the department's jurisdiction, as full or part consideration for property to be acquired for highway purposes. Such
an exchange agreement may relate back and apply to any
exchange of property previously agreed to and partially executed (pursuant to an earlier exchange agreement found to be
void for want of a governor's deed as required by prior law),
and shall be subject to such agreed terms and conditions as
are authorized by RCW 47.12.063(3) as now existing or hereafter amended. Any conveyance from the state of Washington made pursuant to this section shall be by deed executed
by the secretary of transportation, which shall be duly
acknowledged. [1979 ex.s. c 189 § 2.]
Effective date—1979 ex.s. c 189: See note following RCW 47.12.283.
47.12.290
47.12.290 Sale of real property—Execution,
acknowledgement, and delivery of deed. When full payment for real property agreed to be sold as authorized by
RCW 47.12.283 has been received, the secretary of transportation shall execute the deed which shall be duly acknowledged and deliver it to the grantee. [1979 ex.s. c 189 § 3;
1975 1st ex.s. c 96 § 6; 1973 1st ex.s. c 177 § 2.]
[Title 47 RCW—page 73]
47.12.300
Title 47 RCW: Public Highways and Transportation
Effective date—1979 ex.s. c 189: See note following RCW 47.12.283.
47.12.300
47.12.300 Sale of unneeded property—Department
of transportation—Authorized—Rules. See RCW
47.56.254.
47.12.301
47.12.301 Sale of unneeded property—Department
of transportation—Certification to governor—Execution,
delivery of deed. See RCW 47.56.255.
47.12.302
47.12.302 Department of transportation—Sale of
unneeded property. See RCW 47.60.130.
is a key funding component in bringing environmental mitigation together
with comprehensive watershed management." [1998 c 181 § 1.]
Intent—1997 c 140: "It is the intent of chapter 140, Laws of 1997 to
provide environmental mitigation in advance of the construction of programmed projects where desirable and feasible, [which] will provide a more
efficient and predictable environmental permit process, increased benefits to
environmental resources, and a key tool in using the watershed approach for
environmental impact mitigation. The legislative transportation committee,
through its adoption of the December 1994 report "Environmental Cost Savings and Permit Coordination Study," encourages state agencies to use a
watershed approach based on a water resource inventory area in an improved
environmental mitigation and permitting process. Establishment of an
advanced transportation environmental mitigation revolving account would
help the state to improve permit processes and environmental protection
when providing transportation services." [1997 c 140 § 1.]
47.12.340
47.12.320
47.12.320 Sale of property—Listing with broker.
The department may list any available properties with any
licensed real estate broker at a commission rate otherwise
charged in the geographic area for such services. [1984 c 7 §
130; 1973 1st ex.s. c 177 § 7.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.12.330
47.12.330 Advanced environmental mitigation—
Authorized. For the purpose of environmental mitigation of
transportation projects, the department may acquire or
develop, or both acquire and develop, environmental mitigation sites in advance of the construction of programmed
projects. The term "advanced environmental mitigation"
means mitigation of adverse impacts upon the environment
from transportation projects before their design and construction. Advanced environmental mitigation consists of the
acquisition of property; the acquisition of property, water, or
air rights; the development of property for the purposes of
improved environmental management; engineering costs
necessary for such purchase and development; and the use of
advanced environmental mitigation sites to fulfill project
environmental permit requirements. Advanced environmental mitigation must be conducted in a manner that is consistent with the definition of mitigation found in the council of
environmental quality regulations (40 C.F.R. Sec. 1508.20)
and the governor's executive order on wetlands (EO 90-04).
Advanced environmental mitigation is for projects approved
by the transportation commission as part of the state's sixyear plan or included in the state highway system plan.
Advanced environmental mitigation must give consideration
to activities related to fish passage, fish habitat, wetlands, and
flood management. Advanced environmental mitigation may
also be conducted in partnership with federal, state, or local
government agencies, tribal governments, interest groups, or
private parties. Partnership arrangements may include joint
acquisition and development of mitigation sites, purchasing
and selling mitigation bank credits among participants, and
transfer of mitigation site title from one party to another. Specific conditions of partnership arrangements will be developed in written agreements for each applicable environmental mitigation site. [1998 c 181 § 2; 1997 c 140 § 2.]
Findings—1998 c 181: "The legislature finds that fish passage, fish
habitat, wetlands, and flood management are critical issues in the effective
management of watersheds in Washington. The legislature also finds that the
state of Washington invests a considerable amount of resources on environmental mitigation activities related to fish passage, fish habitat, wetlands,
and flood management. The department of transportation's advanced environmental mitigation revolving account established under RCW 47.12.340,
[Title 47 RCW—page 74]
47.12.340 Advanced environmental mitigation
revolving account. The advanced environmental mitigation
revolving account is created in the custody of the treasurer,
into which the department shall deposit directly and may
expend without appropriation:
(1) An initial appropriation included in the department of
transportation's 1997-99 budget, and deposits from other
identified sources;
(2) All moneys received by the department from internal
and external sources for the purposes of conducting advanced
environmental mitigation; and
(3) Interest gained from the management of the advanced
environmental mitigation revolving account. [1997 c 140 §
3.]
Intent—1997 c 140: See note following RCW 47.12.330.
47.12.350
47.12.350 Advanced environmental mitigation—Site
management—Reimbursement of account. (1) After
advanced environmental mitigation is conducted from funds
in the advanced environmental mitigation revolving account,
the advanced environmental mitigation sites must be managed in accordance with any permits, agreements, or other
legal documents under which the subject advanced environmental mitigation is conducted.
(2) When the department or any of its transportation
partners proceeds with the construction of a transportation
project that will use advanced environmental mitigation sites
to meet the environmental mitigation needs of a project, the
advanced environmental mitigation revolving account shall
be reimbursed from those transportation project funds appropriated for the use of the advanced environmental mitigation
sites. Reimbursements to the advanced environmental mitigation revolving account must be paid at a rate that captures:
(a) Projected land acquisition costs for environmental
mitigation for the subject transportation project;
(b) Advanced environmental mitigation site development costs;
(c) Advanced environmental mitigation site operational
costs (e.g., site monitoring);
(d) Administrative costs for the management of the
advanced environmental revolving account.
These costs must be adjusted based on inflation, as
appropriate.
When only a portion of an advanced environmental mitigation site is used, the reimbursement rate charged to the
purchasing party will be prorated for the portion used. [1997
c 140 § 4.]
(2004 Ed.)
Right of Way Donations
Intent—1997 c 140: See note following RCW 47.12.330.
47.12.360
47.12.360 Advanced environmental mitigation—
Reports. By January 1st of each odd-numbered year, the
department shall report to the legislative transportation committee and the office of financial management:
(1) Which properties were purchased and why;
(2) Expenditures for the acquired parcels; and
(3) Estimated savings from these actions. [1997 c 140 §
5.]
Intent—1997 c 140: See note following RCW 47.12.330.
47.12.370
47.12.370 Environmental mitigation—Exchange
agreements. (1) The department may enter into exchange
agreements with local, state, or federal agencies, tribal governments, or private nonprofit nature conservancy corporations as defined in RCW 64.04.130, to convey properties
under the jurisdiction of the department that serve as environmental mitigation sites, as full or part consideration for the
grantee assuming all future maintenance and operation obligations and costs required to maintain and operate the environmental mitigation site in perpetuity.
(2) Tribal governments shall only be eligible to participate in an exchange agreement if they:
(a) Provide the department with a valid waiver of their
tribal sovereign immunity from suit. The waiver must allow
the department to enforce the terms of the exchange agreement or quitclaim deed in state court; and
(b) Agree that the property shall not be placed into trust
status.
(3) The conveyances must be by quitclaim deed, or other
form of conveyance, executed by the secretary of transportation, and must expressly restrict the use of the property to a
mitigation site consistent with preservation of the functions
and values of the site, and must provide for the automatic
reversion to the department if the property is not used as a
mitigation site or is not maintained in a manner that complies
with applicable permits, laws, and regulations pertaining to
the maintenance and operation of the mitigation site. [2003 c
187 § 1; 2002 c 188 § 1.]
Chapter 47.14
Chapter 47.14 RCW
RIGHT OF WAY DONATIONS
47.14.040
way acquisition is often a significant, and even a prohibitive
cost element in many transportation improvement projects.
The legislature seeks to encourage the voluntary donation of right of way to the state, counties, cities, and towns for
transportation improvements recognizing that such donations
can result in direct benefits to property owners, developers,
and the community at large.
It is the intent of the legislature to further facilitate the
department of transportation's authority under RCW
47.12.010, 47.24.030, and 47.52.050 to accept donations of
right of way for state transportation purposes. The legislature
further intends to facilitate the authority of a city, town, or
county to accept donations of right of way for other transportation purposes.
The legislature therefore declares it to be in the best
interest and welfare of the citizens of Washington for the
state department of transportation, and for counties, cities,
and towns to actively foster and encourage donations of right
of way by willing donors in all areas where transportation
improvements are to be made. In addition, and in lieu of monetary compensation for property needed for right of way purposes, the legislature seeks to provide incentives to potential
donors such as are set forth in RCW 47.14.030 and
47.14.040. [1987 c 267 § 1.]
47.14.020
47.14.020 Definitions. The definitions set forth in this
section apply throughout this chapter.
(1) "Right of way" means the area of land designated for
transportation purposes.
(2) "Airspace" means the space above and below the
gradeline of all highways, roads, and streets, and the area
alongside the traveled way and within approved right of way
lines. [1987 c 267 § 2.]
47.14.030
47.14.030 Credit against transportation benefit district assessment. The governing body of a transportation
benefit district may give credit for all or any portion of any
real property donation against an assessment, charge, or other
required financial contribution for transportation improvements within a transportation benefit district established
under RCW 36.73.020 or 35.21.225. The credit granted shall
be available against any assessment, charge or other required
financial contribution for any transportation purpose which
utilizes the donated property. [1987 c 267 § 3.]
Sections
47.14.040
47.14.010
47.14.020
47.14.030
47.14.040
47.14.050
47.14.900
47.14.910
47.14.010
Legislative finding, intent.
Definitions.
Credit against transportation benefit district assessment.
Advertising signs on donated parcel.
Department's duties.
Construction.
Severability—1987 c 267.
47.14.010 Legislative finding, intent. The legislature
finds that in numerous areas throughout the state, rapid
expansion of residential, commercial, industrial, and business
activities is producing increased traffic levels. The legislature
further finds that many property owners have exhibited a
willingness to donate real property or property rights for
transportation improvements to accommodate such increases
in traffic. The legislature recognizes that the cost of right of
(2004 Ed.)
47.14.040 Advertising signs on donated parcel. The
department or the county, city, or town to which the right of
way is donated shall, upon request, grant the donor an airspace lease or a permit for the purpose of erecting or maintaining, or both, one or more signs advertising a business of
the donor that is conducted on premises adjacent to the
donated parcel unless the sign or signs would be detrimental
to the safety and operation of the highway, road, or street.
This provision applies to all highways, roads, and streets
other than limited access highways and streets, where it
applies only until the donated parcel becomes part of a completed operating facility. Except as provided in this section,
any such sign shall conform to the requirements of all other
applicable federal, state, and local laws and ordinances. The
lease agreement or permit shall take into consideration appli[Title 47 RCW—page 75]
47.14.050
Title 47 RCW: Public Highways and Transportation
cable county and city zoning ordinances and may provide for
compensation for removal of the sign in accordance with
applicable federal, state, and local laws and ordinances. The
lease agreement or permit shall specify the conditions for signage. [1987 c 267 § 4.]
47.14.050 Department's duties. The department shall:
(1) Give priority to the refinement and modification of
right of way procedures and policies dealing with donation;
(2) Reduce or simplify paperwork requirements resulting
from right of way procurement;
(3) Increase communication and education efforts as a
means to solicit and encourage voluntary right of way donations;
(4) Enhance communication and coordination with local
governments through agreements of understanding that
address state acceptance of right of way donations secured
under zoning, use permits, subdivision, and associated police
power authority of local government. [1998 c 245 § 96; 1987
c 267 § 5.]
47.14.050
47.14.900 Construction. Nothing in this chapter may
be construed to contravene the requirements of chapter 8.26
RCW. [1987 c 267 § 6.]
47.14.900
47.14.910 Severability—1987 c 267. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1987 c 267 § 12.]
47.14.910
Chapter 47.17
Chapter 47.17 RCW
STATE HIGHWAY ROUTES
Sections
47.17.001
47.17.005
47.17.010
47.17.015
47.17.020
47.17.025
47.17.030
47.17.035
47.17.040
47.17.045
47.17.050
47.17.055
47.17.060
47.17.065
47.17.070
47.17.075
47.17.077
47.17.080
47.17.081
47.17.085
47.17.090
47.17.095
47.17.100
47.17.105
47.17.110
47.17.115
47.17.120
47.17.130
47.17.132
47.17.133
47.17.135
47.17.140
47.17.145
47.17.153
Criteria for changes to system.
State route No. 2.
State route No. 3.
State route No. 4.
State route No. 5.
State route No. 6.
State route No. 7.
State route No. 8.
State route No. 9.
State route No. 10.
State route No. 11.
State route No. 12.
State route No. 14.
State route No. 16.
State route No. 17.
State route No. 18.
State route No. 19.
State route No. 20.
State route No. 20 north.
State route No. 21.
State route No. 22.
State route No. 23.
State route No. 24.
State route No. 25.
State route No. 26.
State route No. 27.
State route No. 28.
State route No. 31.
State route No. 35.
State route No. 41.
State route No. 82.
State route No. 90—American Veterans Memorial Highway.
State route No. 92.
State route No. 96.
[Title 47 RCW—page 76]
47.17.155
47.17.157
47.17.160
47.17.163
47.17.165
47.17.168
47.17.170
47.17.175
47.17.180
47.17.185
47.17.190
47.17.195
47.17.200
47.17.212
47.17.215
47.17.216
47.17.217
47.17.219
47.17.221
47.17.223
47.17.225
47.17.227
47.17.230
47.17.235
47.17.240
47.17.250
47.17.255
47.17.260
47.17.262
47.17.275
47.17.280
47.17.285
47.17.295
47.17.300
47.17.305
47.17.310
47.17.315
47.17.317
47.17.320
47.17.325
47.17.328
47.17.330
47.17.335
47.17.340
47.17.345
47.17.350
47.17.355
47.17.360
47.17.365
47.17.370
47.17.372
47.17.375
47.17.377
47.17.380
47.17.382
47.17.385
47.17.390
47.17.395
47.17.400
47.17.405
47.17.410
47.17.416
47.17.417
47.17.419
47.17.425
47.17.430
47.17.435
47.17.436
47.17.440
47.17.445
47.17.455
47.17.460
47.17.465
47.17.475
47.17.480
47.17.481
47.17.482
47.17.485
47.17.490
47.17.495
47.17.500
47.17.502
47.17.503
47.17.505
State route No. 97.
State route No. 97-alternate.
State route No. 99.
State route No. 100.
State route No. 101.
State route No. 102.
State route No. 103.
State route No. 104.
State route No. 105.
State route No. 106.
State route No. 107.
State route No. 108.
State route No. 109.
State route No. 110.
State route No. 112.
State route No. 113.
State route No. 115.
State route No. 116.
State route No. 117.
State route No. 119.
State route No. 121.
State route No. 122.
State route No. 123.
State route No. 124.
State route No. 125.
State route No. 127.
State route No. 128.
State route No. 129.
State route No. 131.
State route No. 141.
State route No. 142.
State route No. 150.
State route No. 153.
State route No. 155.
State route No. 160.
State route No. 161.
State route No. 162.
State route No. 163.
State route No. 164.
State route No. 165.
State route No. 166.
State route No. 167.
State route No. 168.
State route No. 169.
State route No. 170.
State route No. 171.
State route No. 172.
State route No. 173.
State route No. 174.
State route No. 181.
State route No. 182.
State route No. 193.
State route No. 194.
State route No. 195.
State route No. 197.
State route No. 202.
State route No. 203.
State route No. 204.
State route No. 205.
State route No. 206.
State route No. 207.
State route No. 211.
State route No. 213.
State route No. 215.
State route No. 221.
State route No. 223.
State route No. 224.
State route No. 225.
State route No. 230.
State route No. 231.
State route No. 240.
State route No. 241.
State route No. 243.
State route No. 260.
State route No. 261.
State route No. 262.
State route No. 263.
State route No. 270.
State route No. 271.
State route No. 272.
State route No. 274.
State route No. 276.
State route No. 278.
State route No. 281.
(2004 Ed.)
State Highway Routes
47.17.510
47.17.515
47.17.517
47.17.520
47.17.525
47.17.530
47.17.540
47.17.545
47.17.550
47.17.556
47.17.560
47.17.566
47.17.567
47.17.569
47.17.571
47.17.575
47.17.577
47.17.580
47.17.595
47.17.605
47.17.610
47.17.615
47.17.625
47.17.630
47.17.635
47.17.640
47.17.645
47.17.650
47.17.655
47.17.660
47.17.665
47.17.670
47.17.675
47.17.680
47.17.685
47.17.690
47.17.695
47.17.705
47.17.710
47.17.715
47.17.717
47.17.720
47.17.725
47.17.727
47.17.730
47.17.735
47.17.740
47.17.745
47.17.750
47.17.752
47.17.755
47.17.757
47.17.760
47.17.765
47.17.770
47.17.780
47.17.785
47.17.795
47.17.797
47.17.800
47.17.805
47.17.806
47.17.807
47.17.808
47.17.815
47.17.818
47.17.819
47.17.820
47.17.821
47.17.823
47.17.824
47.17.825
47.17.835
47.17.840
47.17.845
47.17.850
47.17.855
47.17.917
47.17.919
47.17.960
47.17.990
State route No. 282.
State route No. 283.
State route No. 285.
State route No. 290.
State route No. 291.
State route No. 292.
State route No. 300.
State route No. 302.
State route No. 303.
State route No. 304.
State route No. 305.
State route No. 307.
State route No. 308.
State route No. 310.
State route No. 339.
State route No. 395.
State route No. 397.
State route No. 401.
State route No. 405.
State route No. 409.
State route No. 410.
State route No. 411.
State route No. 432.
State route No. 433.
State route No. 500.
State route No. 501—Erwin O. Rieger Memorial Highway.
State route No. 502.
State route No. 503.
State route No. 504—Spirit Lake Memorial Highway.
State route No. 505.
State route No. 506.
State route No. 507.
State route No. 508.
State route No. 509.
State route No. 510.
State route No. 512.
State route No. 513.
State route No. 515.
State route No. 516.
State route No. 518.
State route No. 519.
State route No. 520.
State route No. 522.
State route No. 523.
State route No. 524.
State route No. 525.
State route No. 526.
State route No. 527.
State route No. 528.
State route No. 529.
State route No. 530.
State route No. 531.
State route No. 532.
State route No. 534.
State route No. 536.
State route No. 538.
State route No. 539.
State route No. 542.
State route No. 543.
State route No. 544.
State route No. 546.
State route No. 547.
State route No. 548.
State route No. 599.
State route No. 702.
State route No. 704.
State route No. 705.
State route No. 706—Road to Paradise.
State route No. 730.
State route No. 821.
State route No. 823.
State route No. 900.
State route No. 902.
State route No. 903.
State route No. 904.
State route No. 906.
State route No. 908.
State route No. 970.
State route No. 971.
Local bridges—Department responsibility.
Construction—Refunds to counties composed of islands.
Latitude in selecting route: RCW 47.28.010.
(2004 Ed.)
47.17.001
47.17.001 Criteria for changes to system. In considering whether to make additions, deletions, or other changes to
the state highway system, the legislature shall be guided by
the following criteria as contained in the Road Jurisdiction
Committee Phase I report to the legislature dated January
1987:
(1) A rural highway route should be designated as a state
highway if it meets any of the following criteria:
(a) Is designated as part of the national system of interstate and defense highways (popularly called the interstate
system); or
(b) Is designated as part of the system of numbered
United States routes; or
(c) Contains an international border crossing that is open
twelve or more hours each day.
(2) A rural highway route may be designated as a state
highway if it is part of an integrated system of roads and:
(a) Carries in excess of three hundred thousand tons
annually and provides primary access to a rural port or intermodal freight terminal;
(b) Provides a major cross-connection between existing
state highways;
(c) Connects places exhibiting one or more of the following characteristics:
(i) A population center of one thousand or greater;
(ii) An area or aggregation of areas having a population
equivalency of one thousand or more, such as, but not limited
to, recreation areas, military installations, and so forth;
(iii) A county seat;
(iv) A major commercial-industrial terminal in a rural
area with a population equivalency of one thousand or
greater; or
(d) Is designated as a scenic and recreational highway.
(3) An urban highway route that meets any of the following criteria should be designated as part of the state highway
system:
(a) Is designated as part of the interstate system;
(b) Is designated as part of the system of numbered
United States routes;
(c) Is an urban extension of a rural state highway into or
through an urban area and is necessary to form an integrated
system of state highways;
(d) Is a principal arterial that is a connecting link
between two state highways and serves regionally oriented
through traffic in urbanized areas with a population of fifty
thousand or greater, or is a spur that serves regionally oriented traffic in urbanized areas.
(4) The following guidelines are intended to be used as a
basis for interpreting and applying the criteria to specific
routes:
(a) For any route wholly within one or more contiguous
jurisdictions which would be proposed for transfer to the
state highway system under these criteria, if local officials
prefer, responsibility will remain at the local level.
(b) State highway routes maintain continuity of the system by being composed of routes that join other state routes
at both ends or to arterial routes in the states of Oregon and
Idaho and the Province of British Columbia.
(c) Public facilities may be considered to be served if
they are within approximately two miles of a state highway.
(d) Exceptions may be made to include:
47.17.001
[Title 47 RCW—page 77]
47.17.005
Title 47 RCW: Public Highways and Transportation
(i) Rural spurs as state highways if they meet the criteria
relative to serving population centers of one thousand or
greater population or activity centers with population equivalencies or an aggregated population of one thousand or
greater;
(ii) Urban spurs as state highways that provide needed
access to Washington state ferry terminals, state parks, major
seaports, and trunk airports; and
(iii) Urban connecting links as state highways that function as needed bypass routing of regionally oriented through
traffic and benefit truck routing, capacity alternative, business congestion, and geometric deficiencies.
(e) In urban and urbanized areas:
(i) Unless they are significant regional traffic generators,
public facilities such as state hospitals, state correction centers, state universities, ferry terminals, and military bases do
not constitute a criteria for establishment of a state highway;
and
(ii) There may be no more than one parallel nonaccess
controlled facility in the same corridor as a freeway or limited
access facility as designated by the metropolitan planning
organization.
(f) When there is a choice of two or more routes between
population centers, the state route designation shall normally
be based on the following considerations:
(i) The ability to handle higher traffic volumes;
(ii) The higher ability to accommodate further development or expansion along the existing alignment;
(iii) The most direct route and the lowest travel time;
(iv) The route that serves traffic with the most interstate,
statewide, and interregional significance;
(v) The route that provides the optimal spacing between
other state routes; and
(vi) The route that best serves the comprehensive plan
for community development in those areas where such a plan
has been developed and adopted.
(g) A route designated in chapter 47.39 RCW as a scenic
and recreational highway may be designated as a state highway in addition to a parallel state highway route. [1993 c 430
§ 1; 1990 c 233 § 1.]
47.17.005
47.17.005 State route No. 2. A state highway to be
known as state route number 2 is established as follows:
Beginning at a junction with state route number 5 in
Everett, thence easterly by way of Monroe, Stevens Pass, and
Leavenworth to a junction with state route number 97 in the
vicinity of Peshastin; also
From a junction with state route number 97 in the vicinity of Peshastin, thence easterly by way of Wenatchee, to a
junction with state route number 97 in the vicinity of Orondo,
thence easterly by way of Waterville, Wilbur, and Davenport
to a junction with state route number 90 in the vicinity west
of Spokane; also
Beginning at a junction with state route number 90 at
Spokane, thence northerly to a junction with state route number 395 in the vicinity north of Spokane; also
From a junction with state route number 395 in the vicinity north of Spokane, thence northerly to a junction with state
route number 20 at Newport; also
[Title 47 RCW—page 78]
From a junction with state route number 20 at Newport,
thence easterly to the Washington-Idaho boundary line.
[1997 c 155 § 1; 1987 c 199 § 1; 1970 ex.s. c 51 § 2.]
Purpose—1970 ex.s. c 51: "This act is intended to assign state route
numbers to existing state highways duly established by prior legislative act
in lieu of primary state highway numbers and secondary state highway numbers. Nothing contained herein is intended to add any new section of highway to the state highway system or delete any section of highway from the
state highway system." [1970 ex.s. c 51 § 179.]
47.17.010
47.17.010 State route No. 3. A state highway to be
known as state route number 3 is established as follows:
Beginning at a junction with state route number 101 at
Shelton, thence northeasterly to a junction with state route
number 302 at Allyn; also
From that junction with state route number 302 at Allyn,
thence northeasterly to a junction with state route number
106 in the vicinity of Belfair; also
From that junction with state route number 106 in the
vicinity of Belfair, thence northeasterly by the most feasible
route to Bremerton, thence northerly and easterly by the most
feasible route in the vicinity of Poulsbo to a junction with
state route number 104 in the vicinity of Port Gamble. [1970
ex.s. c 51 § 3.]
47.17.015
47.17.015 State route No. 4. A state highway to be
known as state route number 4 is established as follows:
Beginning at a junction with state route number 101 in
the vicinity of a location known as Johnson's Landing, in
Pacific county, thence southeasterly by the most feasible
route by way of Kelso to a junction with state route number
5. [1970 ex.s. c 51 § 4.]
47.17.020
47.17.020 State route No. 5. A state highway to be
known as state route number 5 is established as follows:
Beginning at the Washington-Oregon boundary line on
the interstate bridge over the Columbia river at Vancouver,
thence northerly by way of Kelso, Chehalis, Centralia, Olympia, Tacoma, Seattle, Everett and Mt. Vernon, thence northwesterly to the east of Lake Samish, thence northeasterly and
northerly by way of Bellingham to the international boundary
line in the vicinity of Blaine in Whatcom county. [1970 ex.s.
c 51 § 5.]
47.17.025
47.17.025 State route No. 6. A state highway to be
known as state route number 6 is established as follows:
Beginning at a junction with state route number 101 at
Raymond, thence easterly by the most feasible route to a
junction with state route number 5 at Chehalis. [1970 ex.s. c
51 § 6.]
47.17.030
47.17.030 State route No. 7. A state highway to be
known as state route number 7 is established as follows:
Beginning at a junction with state route number 12 in the
vicinity of Morton, thence northerly to a junction with state
route number 706 at Elbe; also
From that junction with state route number 706 at Elbe,
thence northerly to a junction with state route number 5 at
Tacoma. [1970 ex.s. c 51 § 7.]
(2004 Ed.)
State Highway Routes
47.17.035
47.17.035 State route No. 8. A state highway to be
known as state route number 8 is established as follows:
Beginning at a junction with state route number 12 in the
vicinity of Elma, thence easterly to a junction with state route
number 101 west of Olympia. [1987 c 199 § 2; 1970 ex.s. c
51 § 8.]
47.17.040
47.17.040 State route No. 9. A state highway to be
known as state route number 9 is established as follows:
Beginning at a junction with state route number 522
north of Woodinville, thence northerly by way of Snohomish,
Arlington and Sedro Woolley to a junction with state route
number 542, in the vicinity of Deming; also
Beginning at a junction with state route number 542, in
the vicinity of Lawrence, thence northerly to the international
boundary at Sumas. [1970 ex.s. c 51 § 9.]
47.17.080
Beginning at a junction with state route number 5 at
Vancouver, thence easterly by way of Stevenson to a junction
with state route number 97 in the vicinity of Maryhill; also
Beginning at a junction with state route number 97 in the
vicinity of Maryhill, thence easterly along the north bank of
the Columbia river to a junction with state route number 82 in
the vicinity of Plymouth. [1985 c 177 § 2; 1970 ex.s. c 51 §
13.]
47.17.065
47.17.065 State route No. 16. A state highway to be
known as state route number 16 is established as follows:
Beginning at a junction with state route number 5 at
Tacoma, thence northwesterly by way of the Tacoma Narrows Bridge to a junction with state route number 3 in the
vicinity of Gorst. [1987 c 199 § 5; 1973 1st ex.s. c 151 § 1;
1970 ex.s. c 51 § 14.]
47.17.070
47.17.045
47.17.045 State route No. 10. A state highway to be
known as state route number 10 is established as follows:
Beginning at a junction with state route number 970 at
Teanaway junction thence easterly to a junction with state
route number 97 west of Ellensburg. [1987 c 199 § 3; 1975 c
63 § 14; 1971 ex.s. c 73 § 1; 1970 ex.s. c 51 § 10.]
47.17.050
47.17.050 State route No. 11. A state highway to be
known as state route number 11 is established as follows:
Beginning at a junction with state route number 5 in the
vicinity of Burlington, thence northerly by way of Blanchard
to a junction with state route number 5 at Bellingham. [1987
c 199 § 4; 1970 ex.s. c 51 § 11.]
47.17.055
47.17.055 State route No. 12. A state highway to be
known as state route number 12 is established as follows:
Beginning at a junction with state route number 101 at
Aberdeen, thence easterly by way of Montesano and Elma to
a junction with state route number 8 in the vicinity of Elma;
also
From that junction with state route number 8 in the vicinity of Elma, thence southeasterly to a junction with state route
number 5 in the vicinity north of Centralia; also
Beginning at a junction with state route number 5 in the
vicinity south of Chehalis, thence easterly by way of Morton
and White Pass to a junction with state route number 410
northwest of Yakima; also
From that junction with state route number 410 northwest of Yakima, thence southeasterly to a junction with state
route number 82 at Yakima; also
Beginning at a junction with state route number 182 near
Pasco, thence southeasterly by the most feasible route by way
of Wallula to Walla Walla, thence northerly by way of Dayton to a junction with state route number 127 at Dodge; also
From that junction with state route number 127 in the
vicinity of Dodge, thence easterly by the most feasible route
by way of Pomeroy and Clarkston to the Washington-Idaho
boundary line. [1985 c 177 § 1; 1983 c 180 § 1; 1970 ex.s. c
51 § 12.]
47.17.060
47.17.060 State route No. 14. A state highway to be
known as state route number 14 is established as follows:
(2004 Ed.)
47.17.070 State route No. 17. A state highway to be
known as state route number 17 is established as follows:
Beginning at a junction with state route number 395 in
the vicinity of Mesa, thence northwesterly by way of the
vicinity of Moses Lake, and Soap Lake, to a junction with
state route number 2 west of Coulee City; also
From a junction with state route number 2 in the vicinity
west of Coulee City, thence northerly by way of the vicinity
of Leahy, crossing the Columbia river in the vicinity of
Bridgeport, thence northwesterly to a junction with state
route number 97 east of Brewster. [1979 ex.s. c 33 § 1; 1970
ex.s. c 51 § 15.]
47.17.075
47.17.075 State route No. 18. A state highway to be
known as state route number 18 is established as follows:
Beginning at a junction with state route number 99 in the
vicinity of northeast Tacoma, thence northeasterly by way of
Auburn to a junction with state route number 90 west of
North Bend. [1987 c 199 § 6; 1970 ex.s. c 51 § 16.]
47.17.077
47.17.077 State route No. 19. A state highway to be
known as state route number 19 is established as follows:
Beginning at a junction with state route number 104,
thence northerly to a junction with state route number 20 near
Old Fort Townsend state park. [1991 c 342 § 1.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.080
47.17.080 State route No. 20. A state highway to be
known as state route number 20 is established as follows:
Beginning at a junction with state route number 101 in
the vicinity of Discovery Bay, thence northeasterly via the
most feasible route to Port Townsend; also
From the state ferry terminal at Port Townsend via the
state ferry system northeasterly to the state ferry terminal at
Keystone; also
From the Keystone ferry dock on Whidbey Island,
thence northeasterly by the most feasible route by way of
Deception Pass, Burlington, Sedro Woolley, Concrete,
Newhalem, Winthrop, Twisp, Okanogan, Tonasket, Republic, Kettle Falls, Colville, and Tiger; thence southerly and
southeasterly to a junction with state route number 2 at Newport. [1994 c 209 § 1; 1973 1st ex.s. c 151 § 13; 1970 ex.s. c
51 § 17.]
[Title 47 RCW—page 79]
47.17.081
Title 47 RCW: Public Highways and Transportation
47.17.081
47.17.081 State route No. 20 north. A state highway
to be known as state route number 20 north is established as
follows:
Beginning at a junction with state route number 20 in the
vicinity southeast of Anacortes, thence northwesterly to the
state ferry terminal at Anacortes; also
From the state ferry terminal at Anacortes via the state
ferry system to the state ferry terminals at Lopez Island,
Shaw Island, Orcas Island, and Friday Harbor. [1994 c 209 §
2; 1973 1st ex.s. c 151 § 17.]
47.17.085
47.17.085 State route No. 21. A state highway to be
known as state route number 21 is established as follows:
Beginning at a junction with state route number 260 in
Kahlotus, thence northerly by the most feasible route, crossing state route number 26, and continuing northerly to a junction with state route number 395 in the vicinity of Lind; also
Beginning at a junction with state route number 395 in
the vicinity of Lind, thence northerly by the most feasible
route by way of Odessa to a junction with state route number
2 in the vicinity west of Wilbur; also
Beginning at a junction with state route number 2 at Wilbur, thence northerly by the most feasible route to a junction
with state route number 20 at Republic; also
Beginning at a junction with state route number 20 east
of Republic, thence northeasterly by the most feasible route
to the east of Curlew lake by way of Curlew to the international boundary line in the vicinity of Danville. [1983 c 79 §
1; 1975 c 63 § 1; 1970 ex.s. c 51 § 18.]
junction with state route number 395 in the vicinity of Kettle
Falls, thence northeasterly by the most feasible route to international boundary line. [1970 ex.s. c 51 § 22.]
47.17.110
47.17.110 State route No. 26. A state highway to be
known as state route number 26 is established as follows:
Beginning at a junction with state route number 90 in the
vicinity of the east end of the Vantage bridge, thence southerly, parallel to the east bank of the Columbia river for a distance of approximately two and one-half miles, thence southeasterly to the vicinity of Othello, thence easterly to a junction with state route number 395, thence easterly by way of
the vicinity of Washtucna and Dusty to a junction with state
route number 195 in the vicinity of Colfax. [1979 ex.s. c 33
§ 2; 1970 ex.s. c 51 § 23.]
47.17.115
47.17.115 State route No. 27. A state highway to be
known as state route number 27 is established as follows:
Beginning at a junction with state route number 195 in
the vicinity of Pullman, thence northerly to a junction with
state route number 271 in the vicinity of Oakesdale; also
From a junction with state route number 271 at Oakesdale, thence northerly by way of Tekoa, Latah, Fairfield, and
Rockford to a junction with state route number 290 in the
vicinity of Millwood. [1991 c 342 § 2; 1979 ex.s. c 195 § 1;
1975 c 63 § 2; 1970 ex.s. c 51 § 24.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.120
47.17.090
47.17.090 State route No. 22. A state highway to be
known as state route number 22 is established as follows:
Beginning at a junction with state route number 82,
thence southerly to a junction of state route number 97 in the
vicinity of Toppenish; also
From a junction with state route number 97 at Toppenish, thence southeasterly by way of Mabton to a junction with
state route number 82 at Prosser. [1987 c 199 § 7; 1970 ex.s.
c 51 § 19.]
47.17.120 State route No. 28. A state highway to be
known as state route number 28 is established as follows:
Beginning at a junction with state route number 2 in the
vicinity east of Wenatchee, thence southeasterly to a junction
with state route number 281 at Quincy; also
From that junction with state route number 281 at
Quincy, thence easterly by way of Ephrata and Odessa to a
junction with state route number 2 at Davenport. [1970 ex.s.
c 51 § 25.]
47.17.130
47.17.095
47.17.095 State route No. 23. A state highway to be
known as state route number 23 is established as follows:
Beginning at a junction with state route number 195 in
the vicinity north of Colfax, thence northwesterly to a junction with state route number 90 at Sprague; also
From that junction with state route number 90 at Sprague, thence northwesterly to a junction with state route number 28 at Harrington. [1987 c 199 § 8; 1970 ex.s. c 51 § 20.]
47.17.100
47.17.100 State route No. 24. A state highway to be
known as state route number 24 is established as follows:
Beginning at a junction with state route number 82 at
Yakima, thence easterly and northerly via Cold Creek and
Vernita to a junction with state route number 26 in the vicinity of Othello. [1970 ex.s. c 51 § 21.]
47.17.105
47.17.105 State route No. 25. A state highway to be
known as state route number 25 is established as follows:
Beginning at a junction with state route number 2 at
Davenport, thence northerly by the most feasible route to a
[Title 47 RCW—page 80]
47.17.130 State route No. 31. A state highway to be
known as state route number 31 is established as follows:
Beginning at a junction with state route number 20 at
Tiger, thence northerly by way of Metaline Falls to the international boundary. [1973 1st ex.s. c 151 § 14; 1970 ex.s. c 51
§ 27.]
47.17.132
47.17.132 State route No. 35. A state highway to be
known as state route number 35 is established as follows:
Beginning at the Washington-Oregon boundary line
thence northerly to a junction with state route number 14 in
the vicinity of White Salmon; however, until such time as a
bridge across the Columbia River is constructed at a location
adopted by the transportation commission no existing route
may be maintained or improved by the transportation commission as a temporary route for state route number 35.
[1997 c 308 § 1.]
47.17.133
47.17.133 State route No. 41. A state highway to be
known as state route number 41 is established as follows:
(2004 Ed.)
State Highway Routes
Beginning at a junction with state route number 2 in
Newport, thence southerly along the Washington-Idaho
boundary line to Fourth Street in Newport. [1997 c 155 § 2.]
47.17.165
Oroville to the international boundary line. [1987 c 199 § 9;
1984 c 7 § 131; 1975 c 63 § 3; 1973 1st ex.s. c 151 § 2; 1970
ex.s. c 51 § 32.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.17.135 State route No. 82. A state highway to be
known as state route number 82 is established as follows:
Beginning at a junction with state route number 90 in the
vicinity of Ellensburg, thence southerly and easterly by way
of Yakima, Union Gap, Sunnyside, Prosser, Kiona, and
Goose Gap west of Richland, thence southeasterly near Kennewick and southwesterly by way of the vicinity of Plymouth
to a crossing of the Columbia river at the Washington-Oregon boundary line. [1979 ex.s. c 33 § 3; 1970 ex.s. c 51 § 28.]
47.17.135
47.17.157
47.17.157 State route No. 97-alternate. A state highway to be known as state route number 97-alternate is established as follows:
Beginning at a junction with state route number 2 in the
vicinity of Olds, thence northerly by way of Entiat to a junction with state route number 97 in the vicinity east of Chelan.
[1987 c 199 § 10.]
47.17.160
47.17.140 State route No. 90—American Veterans
Memorial Highway. A state highway to be known as state
route number 90 and designated as the American Veterans
Memorial Highway is established as follows:
Beginning at a junction with state route number 5,
thence, via the west approach to the Lake Washington bridge
in Seattle, in an easterly direction by way of Mercer Island,
North Bend, Snoqualmie pass, Ellensburg, Vantage, Moses
Lake, Ritzville, Sprague and Spokane to the WashingtonIdaho boundary line. [1991 c 56 § 2; 1971 ex.s. c 73 § 2;
1970 ex.s. c 51 § 29.]
47.17.140
Purpose—1991 c 56: "In order to create a great memorial and tribute
to American veterans, it is proposed that the Washington state portion of
Interstate 90 be renamed in their honor, to become the westernmost portion
of a memorial highway reaching across the United States." [1991 c 56 § 1.]
47.17.145 State route No. 92. A state highway to be
known as state route number 92 is established as follows:
Beginning at a junction with state route number 9 northeast of Everett, thence northeasterly by the most feasible
route to Granite Falls. [1970 ex.s. c 51 § 30.]
47.17.145
47.17.153 State route No. 96. A state highway to be
known as state route number 96 is established as follows:
Beginning at a junction with state route number 5 in the
vicinity south of Everett, thence easterly to a junction with
state route number 9 in the vicinity of Ree's Corner. [1991 c
342 § 3.]
47.17.153
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.160 State route No. 99. A state highway to be
known as state route number 99 is established as follows:
Beginning at a junction with state route number 18 in the
vicinity of Federal Way, thence northerly by way of Midway,
to a junction with state route 518 in Tukwila; also
Beginning at a junction with state route number 599 in
the vicinity of Tukwila, thence northerly by way of Seattle,
Edmonds, and Lynnwood to a junction with state route number 5 in Everett: PROVIDED, That until state route number
509 is constructed and opened to traffic on an anticipated ultimate alignment from a junction with state route number 705
in Tacoma via the Port of Tacoma industrial area to a junction
with state route number 18 in the vicinity of Federal Way that
portion of state route number 99 between state route number
5 at Fife and state route number 18 in the vicinity of Federal
Way shall remain on the state highway system. [2004 c 205
§ 1; 1979 ex.s. c 33 § 4; 1971 ex.s. c 73 § 3; 1970 ex.s. c 51 §
33.]
47.17.163
47.17.163 State route No. 100. A state highway to be
known as state route number 100 is established as follows:
Beginning at a junction with state route number 101 in
Ilwaco, thence westerly and southerly to Fort Canby state
park; also
Beginning at a junction with state route number 100 in
Ilwaco, thence southerly to Fort Canby state park. [1991 c
342 § 4.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.165
47.17.155 State route No. 97. A state highway to be
known as state route number 97 is established as follows:
Beginning at the Washington-Oregon boundary on the
interstate bridge across the Columbia river at Biggs Rapids,
thence in a northerly direction to the junction with state route
number 14 in the vicinity of Maryhill, thence in a northerly
direction by way of Goldendale, thence northeasterly by way
of Satus Pass to a junction with state route number 22 at Toppenish, thence northwesterly south of the Yakima river to a
junction with state route number 82 at Union Gap; also
Beginning at a junction with state route number 90 in the
vicinity of Ellensburg, thence northeasterly by way of Swauk
Pass to a junction with state route number 2 in the vicinity of
Peshastin; also
Beginning at a junction with state route number 2 in the
vicinity north of Orondo, thence northerly by way of the
vicinities of Chelan, Pateros, Brewster, Okanogan, and
47.17.155
(2004 Ed.)
47.17.165 State route No. 101. A state highway to be
known as state route number 101 is established as follows:
Beginning at the Oregon boundary on the interstate
bridge at Point Ellis, thence northwesterly by way of Ilwaco
to a junction with state route number 4 in the vicinity of a
location known as Johnson's Landing in Pacific county; also
From that junction with state route number 4 in the vicinity of a location known as Johnson's Landing, in Pacific
county, thence northerly by way of South Bend to a junction
with state route number 6 at Raymond; also
From that junction with state route number 6 at Raymond, thence northerly by way of Cosmopolis to a junction
with state route number 12 at Aberdeen; also
From that junction with state route number 12 at Aberdeen, thence westerly to Hoquiam, thence northwesterly by
way of Lake Quinault to Forks, thence easterly by way of
Port Angeles to the vicinity of Discovery Bay, thence south[Title 47 RCW—page 81]
47.17.168
Title 47 RCW: Public Highways and Transportation
erly by way of Shelton to a junction with state route number
5 in the vicinity west of Olympia; also
Beginning at a junction with state route number 101 in
the vicinity east of Ilwaco, thence northerly to a junction with
state route number 101 in the vicinity northeast of Ilwaco.
[1987 c 199 § 11; 1970 ex.s. c 51 § 34.]
Beginning at a junction with state route number 101 near
the mouth of the Skokomish river, thence northeasterly along
the southeast shore of Hood Canal to a junction with state
route number 3 in the vicinity of Belfair. [1970 ex.s. c 51 §
38.]
47.17.190 State route No. 107. A state highway to be
known as state route number 107 is established as follows:
Beginning at a junction with state route number 101
north of Artic, thence northeasterly to a junction with state
route number 12 at Montesano. [1970 ex.s. c 51 § 39.]
47.17.190
47.17.168
47.17.168 State route No. 102. A state highway to be
known as state route number 102 is established as follows:
Beginning at the Washington Corrections Center, thence
northeasterly to a junction of state route number 101 north of
Shelton.
Before award of any construction contract for improvements to state route number 102 under either program A or
program C, the department of transportation shall secure a
portion of the construction cost from Mason county. [1984 c
197 § 1.]
47.17.195 State route No. 108. A state highway to be
known as state route number 108 is established as follows:
Beginning at a junction with state route number 8 in the
vicinity west of McCleary, thence northeasterly to a junction
with state route number 101 south of Shelton. [1973 1st ex.s.
c 151 § 3; 1970 ex.s. c 51 § 40.]
47.17.195
47.17.170
47.17.170 State route No. 103. A state highway to be
known as state route number 103 is established as follows:
Beginning at a junction with state route number 101 at
Seaview, thence northerly by way of Long Beach to Leadbetter Point state park. [1991 c 342 § 5; 1970 ex.s. c 51 § 35.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.175
47.17.175 State route No. 104. A state highway to be
known as state route number 104 is established as follows:
Beginning at a junction with state route number 101 in
the vicinity south of Discovery Bay, thence southeasterly to
the vicinity of Shine on Hood Canal, thence crossing Hood
Canal to a junction with state route number 3 in the vicinity
of Port Gamble; also
From that junction with state route number 3 in the vicinity of Port Gamble, thence to Port Gamble, thence southerly
and easterly to the state ferry terminal at Kingston; also
From the state ferry terminal at Kingston via the state
ferry system easterly to the state ferry terminal at Edmonds;
also
From the state ferry terminal at Edmonds, thence southeasterly to a junction with state route number 99 in the vicinity of the Snohomish-King county line; also
Beginning at a junction with state route number 99 in the
vicinity of the Snohomish-King county line, thence southeasterly to a junction with state route number 522 in the
vicinity of Lake Forest Park. [1994 c 209 § 3; 1970 ex.s. c 51
§ 36.]
47.17.200 State route No. 109. A state highway to be
known as state route number 109 is established as follows:
Beginning at a junction with state route number 101 in
Hoquiam, thence northwesterly by way of Ocean City, Copalis, Pacific Beach, and Moclips to a junction with state route
number 101 in the vicinity of Queets; also a bypass beginning
at a junction with state route number 101 in the vicinity of the
north city limits of Hoquiam, thence southerly to a junction
with state route number 109 in the vicinity of the west city
limits of Hoquiam. [1983 c 180 § 2; 1970 ex.s. c 51 § 41.]
47.17.200
Quinault Tribal Highway: RCW 47.20.710.
47.17.212 State route No. 110. A state highway to be
known as state route number 110 is established as follows:
Beginning at a junction with state route number 101 in
the vicinity north of Forks, thence westerly to the Olympic
national park boundary in the vicinity of La Push; also
Beginning at a junction with state route number 110 near
the Quillayute river, thence westerly to the Olympic national
park boundary in the vicinity of Moro. [1991 c 342 § 6.]
47.17.212
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.215
47.17.215 State route No. 112. A state highway to be
known as state route number 112 is established as follows:
Beginning at the easterly boundary of the Makah Indian
Reservation, thence easterly by way of Clallam Bay and
Pysht to a junction with state route number 101 in or near Port
Angeles. [1971 ex.s. c 73 § 5; 1970 ex.s. c 51 § 44.]
47.17.180
47.17.180 State route No. 105. A state highway to be
known as state route number 105 is established as follows:
Beginning at a junction with state route number 101 at
Raymond, thence westerly by way of Tokeland and North
Cove to the shore of Grays Harbor north of Westport; also
Beginning at a junction with state route number 105 in
the vicinity south of Westport, thence northeasterly to a junction with state route number 101 at Aberdeen. [1987 c 199 §
12; 1970 ex.s. c 51 § 37.]
47.17.185
47.17.185 State route No. 106. A state highway to be
known as state route number 106 is established as follows:
[Title 47 RCW—page 82]
47.17.216 State route No. 113. A state highway to be
known as state route number 113 is established as follows:
Beginning at a junction with state route number 101 in
the vicinity of Sappho, thence northerly to a junction with
state route number 112 in the vicinity of the Pysht River.
[1991 c 342 § 7.]
47.17.216
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.217
47.17.217 State route No. 115. A state highway to be
known as state route number 115 is established as follows:
Beginning at Ocean Shores thence in an easterly and
northerly direction by the most feasible route to a junction
(2004 Ed.)
State Highway Routes
with state route number 109 in the vicinity south of Ocean
City. [1973 c 60 § 1.]
47.17.219
47.17.219 State route No. 116. A state highway to be
known as state route number 116 is established as follows:
Beginning at a junction with state route number 19 in the
vicinity of Irondale, thence easterly and northerly to Fort Flagler state park. [1991 c 342 § 8.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.221
47.17.221 State route No. 117. A state highway to be
known as state route number 117 is established as follows:
Beginning at a junction with state route number 101 in
Port Angeles, thence northerly to the port of Port Angeles at
Marine Drive. [1991 c 342 § 9.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.223
47.17.223 State route No. 119. A state highway to be
known as state route number 119 is established as follows:
Beginning at a junction with state route number 101 near
Hoodsport, thence northwesterly to the Mount Rose development intersection. [1991 c 342 § 10.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.225
47.17.225 State route No. 121. A state highway to be
known as state route number 121 is established as follows:
Beginning at a junction with state route number 5 in the
vicinity of Maytown, thence easterly, northerly, and westerly
by way of Millersylvania state park to a junction with state
route number 5 south of Tumwater. [1991 c 342 § 11; 1970
ex.s. c 51 § 46.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.285
Ice Harbor Dam to be known as "Ice Harbor Drive". [1973
1st ex.s. c 151 § 4; 1970 ex.s. c 51 § 48.]
47.17.240
47.17.240 State route No. 125. A state highway to be
known as state route number 125 is established as follows:
Beginning at the Washington-Oregon boundary line
south of Walla Walla, thence northerly to a junction with
state route number 12 at Walla Walla; also
From a junction with state route number 12 at Walla
Walla, thence northerly to a junction with state route number
124 at Prescott. [1979 ex.s. c 33 § 5; 1970 ex.s. c 51 § 49.]
47.17.250
47.17.250 State route No. 127. A state highway to be
known as state route number 127 is established as follows:
Beginning at a junction with state route number 12 in the
vicinity of Dodge, thence northerly to a junction with state
route number 26 in the vicinity of Dusty. [1979 ex.s. c 33 §
6; 1970 ex.s. c 51 § 51.]
47.17.255
47.17.255 State route No. 128. A state highway to be
known as state route number 128 is established as follows:
Beginning at a junction with state route number 12 in
Clarkston, thence northeasterly and easterly by way of the
Red Wolf crossing to the Idaho state line. [1991 c 342 § 13;
1990 c 108 § 1; 1970 ex.s. c 51 § 52.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.260
47.17.260 State route No. 129. A state highway to be
known as state route number 129 is established as follows:
Beginning at the Washington-Oregon boundary line in
Asotin county, thence northerly by the most feasible route by
way of Asotin to a junction with state route number 12 at
Clarkston. [1970 ex.s. c 51 § 53.]
47.17.227
47.17.227 State route No. 122. A state highway to be
known as state route number 122 is established as follows:
Beginning at a junction with state route number 12 near
Mayfield dam, thence northeasterly and southerly by way of
Mayfield to a junction with state route number 12 in Mossyrock. [1991 c 342 § 12.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.262
47.17.262 State route No. 131. A state highway to be
known as state route number 131 is established as follows:
Beginning at the Gifford Pinchot national forest boundary south of Randle, thence northerly to a junction with state
route number 12 in Randle. [1991 c 342 § 14.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.230
47.17.230 State route No. 123. A state highway to be
known as state route number 123 is established as follows:
Beginning at a junction with state route number 12 in the
vicinity west of White Pass, thence northerly to a junction
with state route number 410 in the vicinity west of Chinook
Pass. [1970 ex.s. c 51 § 47.]
47.17.235
47.17.235 State route No. 124. A state highway to be
known as state route number 124 is established as follows:
Beginning at a junction with state route number 12 in the
vicinity of Burbank, thence northeasterly by the most feasible
route to a point in the vicinity of Eureka, thence easterly by
the most feasible route to a junction with state route number
125 in the vicinity of Prescott, thence easterly to a junction
with state route number 12 in the vicinity northeast of Waitsburg.
That portion of state route number 124 lying between the
junction with state route number 12 and the county road to
(2004 Ed.)
47.17.275
47.17.275 State route No. 141. A state highway to be
known as state route number 141 is established as follows:
Beginning at a wye junction with state route number 14,
the west branch in the vicinity east of Underwood and the
east branch in the vicinity of White Salmon, thence northerly
to the boundary of the Gifford Pinchot National Forest.
[1970 ex.s. c 51 § 56.]
47.17.280
47.17.280 State route No. 142. A state highway to be
known as state route number 142 is established as follows:
Beginning at a junction with state route number 14 in the
vicinity of Lyle, thence northeasterly by way of Klickitat to a
junction with state route number 97 in the vicinity of Goldendale. [1970 ex.s. c 51 § 57.]
47.17.285
47.17.285 State route No. 150. A state highway to be
known as state route number 150 is established as follows:
[Title 47 RCW—page 83]
47.17.295
Title 47 RCW: Public Highways and Transportation
Beginning at Manson, thence southeasterly to the north
of Lake Chelan to a junction with state route number 97-alternate at Chelan.
Also beginning at a junction with state route number 97alternate at Chelan southerly to a junction with state route
number 97 in the vicinity of Chelan Station. [1987 c 199 §
13; 1970 ex.s. c 51 § 58.]
47.17.295
47.17.295 State route No. 153. A state highway to be
known as state route number 153 is established as follows:
Beginning at a junction with state route number 97 in the
vicinity of Pateros, thence northerly and westerly by the most
feasible route to a junction with state route number 20 in the
vicinity south of Twisp. [1970 ex.s. c 51 § 60.]
47.17.300
47.17.300 State route No. 155. A state highway to be
known as state route number 155 is established as follows:
Beginning at a junction with state route number 2 in the
vicinity north of Coulee City, thence northeasterly to the
boundary of the federal reservation at the Grand Coulee dam;
also
Beginning at the boundary of the federal reservation at
the Grand Coulee dam, thence northwesterly by the most feasible route by way of Nespelem and Disautel to a junction
with state route number 97 at Omak; also
Beginning at a junction with state route number 155 at
Omak, thence northwesterly crossing the Okanogan river to a
junction with state route number 215 at Omak. [1975 c 63 §
4; 1970 ex.s. c 51 § 61.]
47.17.305
47.17.305 State route No. 160. A state highway to be
known as state route number 160 is established as follows:
Beginning at a junction with state route number 16 in the
vicinity south of Port Orchard, thence easterly on Sedgwick
Road to the Washington state ferry dock at Point Southworth;
also
From the state ferry terminal at Point Southworth via the
state ferry system easterly to the state ferry terminal at Vashon Heights; also
From the state ferry terminal at Vashon Heights easterly
via the state ferry system to the state ferry terminal at
Fauntleroy. [1994 c 209 § 4; 1993 c 430 § 2; 1970 ex.s. c 51
§ 62; (1991 c 342 § 15 repealed by 1992 c 166 § 31).]
47.17.310
47.17.310 State route No. 161. A state highway to be
known as state route number 161 is established as follows:
Beginning at a junction with state route number 7 in the
vicinity of La Grande, thence northeasterly via Eatonville to
Puyallup, thence northerly to a junction with state route number 18.
That portion of state route 161 within King county shall
be designated Enchanted Parkway. [1987 c 520 § 1; 1971
ex.s. c 73 § 6; 1970 ex.s. c 51 § 63.]
Buckley. [1975 c 63 § 5; 1971 ex.s. c 73 § 7; 1970 ex.s. c 51
§ 64.]
47.17.317
47.17.317 State route No. 163. A state highway to be
known as state route number 163 is established as follows:
Beginning at a junction with state route number 16 in
Tacoma, thence northerly to the Point Defiance ferry terminal; also
From the state ferry terminal at Point Defiance via the
state ferry system northerly to the state ferry terminal at Tahlequah. [1994 c 209 § 5; 1991 c 342 § 16.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.320 State route No. 164. A state highway to be
known as state route number 164 is established as follows:
Beginning at a junction with state route number 18 in the
vicinity of Auburn, thence southeasterly to a junction with
state route number 410 at Enumclaw. [1987 c 199 § 14; 1970
ex.s. c 51 § 65.]
47.17.320
47.17.325 State route No. 165. A state highway to be
known as state route number 165 is established as follows:
Beginning at the northwest entrance to Mt. Rainier
National Park, thence northerly to a junction with state route
number 410 at Buckley. [1970 ex.s. c 51 § 66.]
47.17.325
47.17.328 State route No. 166. A state highway to be
known as state route number 166 is established as follows:
Beginning at a junction with state route number 16 in the
vicinity west of Port Orchard, thence northeasterly to the
eastern Port Orchard city limits. [1993 c 430 § 3.]
47.17.328
47.17.330 State route No. 167. A state highway to be
known as state route number 167 is established as follows:
Beginning at a junction with state route number 5 in the
vicinity of Tacoma, thence easterly by way of the vicinity of
Puyallup and Sumner, thence northerly by way of the vicinity
of Auburn and Kent to a junction with state route number 900
in the vicinity of Renton. [1991 c 342 § 17; 1979 ex.s. c 33 §
8; 1970 ex.s. c 51 § 67.]
47.17.330
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.335
47.17.335 State route No. 168. A state highway to be
known as state route number 168 is established as follows:
Beginning at a junction with state route number 410 in
the vicinity of the junction of the Greenwater and White rivers, thence easterly to a junction with state route number 410
in the vicinity north of Cliffdell. [1970 ex.s. c 51 § 68.]
47.17.340 State route No. 169. A state highway to be
known as state route number 169 is established as follows:
Beginning at a junction with state route number 164 at
Enumclaw, thence northwesterly by way of Summit to a
junction with state route number 900 in the vicinity of
Renton. [1971 ex.s. c 73 § 8; 1970 ex.s. c 51 § 69.]
47.17.340
47.17.315
47.17.315 State route No. 162. A state highway to be
known as state route number 162 is established as follows:
Beginning at a junction with state route number 410 at
Sumner, thence southerly to Orting, thence northeasterly to a
junction with state route number 165 in the vicinity south of
[Title 47 RCW—page 84]
47.17.345 State route No. 170. A state highway to be
known as state route number 170 is established as follows:
Beginning at a junction with state route number 17 west
of Warden, thence easterly to Warden. [1970 ex.s. c 51 § 70.]
47.17.345
(2004 Ed.)
State Highway Routes
47.17.350
47.17.350 State route No. 171. A state highway to be
known as state route number 171 is established as follows:
Beginning at a junction with state route number 90 west
of Moses Lake, thence northeasterly by way of Moses Lake
to a junction with state route number 28 in the vicinity west
of Odessa. Until such time as state route number 171 is actually constructed on the location adopted by the department,
no existing county roads may be maintained or improved by
the department as a temporary route of state route number
171. [1984 c 7 § 132; 1970 ex.s. c 51 § 71.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.17.355
47.17.355 State route No. 172. A state highway to be
known as state route number 172 is established as follows:
Beginning at a junction with state route number 2 in the
vicinity of Waterville, thence northerly and easterly by the
most feasible route by way of Mansfield to a junction with
state route number 17 in the vicinity of Leahy. [1970 ex.s. c
51 § 72.]
47.17.360
47.17.360 State route No. 173. A state highway to be
known as state route number 173 is established as follows:
Beginning at a junction with state route number 17 at
Bridgeport thence northwesterly on the south side of the
Columbia river to a junction with state route number 97 in the
vicinity of Brewster. [1970 ex.s. c 51 § 73.]
47.17.365
47.17.365 State route No. 174. A state highway to be
known as state route number 174 is established as follows:
Beginning at a junction with state route number 17 east
of Bridgeport, thence easterly to the boundary of the federal
reservation at Grand Coulee dam; also
Beginning at a junction with state route number 155 at
Grand Coulee, thence southeasterly to a junction with state
route number 21 in the vicinity north of Wilbur; also
A spur beginning at a junction with state route number
174 in the vicinity of the boundary of the federal reservation
at the Grand Coulee dam and extending to Crown Point.
[1987 c 199 § 15; 1970 ex.s. c 51 § 74.]
47.17.370
47.17.370 State route No. 181. A state highway to be
known as state route number 181 is established as follows:
Beginning at a junction with state route number 516 in
the vicinity of Kent, thence northerly to a junction with state
route number 405 in the vicinity of Tukwila. [1991 c 342 §
18; 1979 ex.s. c 192 § 4; 1971 ex.s. c 73 § 9; 1970 ex.s. c 51
§ 75.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
Effective dates—1979 ex.s. c 192: See note following RCW
44.40.070.
47.17.372
47.17.372 State route No. 182. A state highway to be
known as state route number 182 is established as follows:
Beginning at a junction with state route number 82 in the
vicinity of Goose Gap, thence easterly via Richland to a junction with state route number 395 in the vicinity of Pasco.
[1979 ex.s. c 33 § 9; 1971 ex.s. c 73 § 10.]
47.17.375
47.17.375 State route No. 193. A state highway to be
known as state route number 193 is established as follows:
(2004 Ed.)
47.17.405
Beginning at a junction with state route number 128 in
the vicinity of the Red Wolf crossing, thence westerly to the
port of Wilma. [1991 c 342 § 19; 1990 c 108 § 2; 1984 c 7 §
133; 1970 ex.s. c 51 § 76.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
Severability—1984 c 7: See note following RCW 47.01.141.
47.17.377
47.17.377 State route No. 194. A state highway to be
known as state route number 194 is established as follows:
Beginning at the port of Almota, thence northerly and
easterly to a junction with state route number 195 in the
vicinity of Pullman. [1991 c 342 § 20.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.380
47.17.380 State route No. 195. A state highway to be
known as state route number 195 is established as follows:
Beginning at the Washington-Idaho boundary line southeast of Uniontown, thence northwesterly and northerly by
way of the vicinity of Pullman, Colfax, and Rosalia to a junction with state route number 90 at Spokane. [1979 ex.s. c 33
§ 10; 1970 ex.s. c 51 § 77.]
47.17.382
47.17.382 State route No. 197. A state highway to be
known as state route number 197 is established as follows:
Beginning at the Washington-Oregon boundary on the
interstate bridge across the Columbia river in the vicinity of
The Dalles, thence northerly to a junction with state route
number 14. [1979 ex.s. c 33 § 11; 1973 1st ex.s. c 151 § 6.]
47.17.385
47.17.385 State route No. 202. A state highway to be
known as state route number 202 is established as follows:
Beginning at a junction with state route number 522 near
Bothell, thence southeasterly to a junction with state route
number 90 in the vicinity of North Bend. [1987 c 199 § 16;
1970 ex.s. c 51 § 78.]
47.17.390
47.17.390 State route No. 203. A state highway to be
known as state route number 203 is established as follows:
Beginning at a junction with state route number 202 at
Fall City, thence northerly by the most feasible route by way
of Duvall to a junction with state route number 2 at Monroe.
[1970 ex.s. c 51 § 79.]
47.17.395
47.17.395 State route No. 204. A state highway to be
known as state route number 204 is established as follows:
Beginning at a junction with state route number 2 in the
vicinity east of Everett, thence northeasterly to a junction
with state route number 9. [1987 c 199 § 17; 1970 ex.s. c 51
§ 80.]
47.17.400
47.17.400 State route No. 205. A state highway to be
known as state route number 205 is established as follows:
Beginning at the Washington-Oregon boundary line in
the vicinity east of Vancouver, thence northwesterly to a
junction with state route number 5 in the vicinity of Salmon
Creek, north of Vancouver. [1970 ex.s. c 51 § 81.]
47.17.405
47.17.405 State route No. 206. A state highway to be
known as state route number 206 is established as follows:
[Title 47 RCW—page 85]
47.17.410
Title 47 RCW: Public Highways and Transportation
Beginning at a junction with state route number 2 in the
vicinity north of Mead, thence northeasterly to the entrance to
Mt. Spokane State Park. [1987 c 199 § 18; 1970 ex.s. c 51 §
82.]
47.17.410
47.17.410 State route No. 207. A state highway to be
known as state route number 207 is established as follows:
Beginning at a junction with state route number 2 in the
vicinity north of Winton, thence northerly to Lake Wenatchee
state park. [1991 c 342 § 21; 1970 ex.s. c 51 § 83.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.416
47.17.416 State route No. 211. A state highway to be
known as state route number 211 is established as follows:
Beginning at a junction with state route number 2 southwest of Newport, thence northerly by the most feasible route
by way of Sacheen Lake to a junction with state route number
20 at Usk. [1975 c 63 § 10.]
47.17.417
47.17.417 State route No. 213. A state highway to be
known as state route number 213 is established as follows:
Beginning at a junction with state route number 97 in the
vicinity of Malott, thence northeasterly to a junction with
state route number 20 southwest of Okanogan. Until such
time as this route is actually constructed on the location
adopted by the department, no county roads may be maintained or improved by the department as a temporary route.
[1984 c 7 § 134; 1973 1st ex.s. c 151 § 18.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.17.419
47.17.419 State route No. 215. A state highway to be
known as state route number 215 is established as follows:
Beginning at a junction with state route number 20 in the
vicinity of Okanogan, thence northeasterly on the west side
of the Okanagan river to a junction with state route number
97 north of Omak. [1973 1st ex.s. c 151 § 19.]
47.17.425
47.17.425 State route No. 221. A state highway to be
known as state route number 221 is established as follows:
Beginning at a junction with state route number 14 in the
vicinity of Patterson, thence northerly to a junction with state
route number 22 in the vicinity of Prosser. [1970 ex.s. c 51 §
86.]
47.17.436
47.17.436 State route No. 225. A state highway to be
known as state route number 225 is established as follows:
Beginning at a junction with state route number 224 in
Kiona, thence northeasterly by way of Benton City to a junction with state route number 240 near Horn Rapids dam.
[1991 c 342 § 22.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.440
47.17.440 State route No. 230. A state highway to be
known as state route number 230 is established as follows:
Beginning at a junction with state route number 90 in the
vicinity of Ritzville, thence easterly by the most feasible
route to a junction with state route number 23 in the vicinity
of Ewan. [1970 ex.s. c 51 § 89.]
47.17.445
47.17.445 State route No. 231. A state highway to be
known as state route number 231 is established as follows:
Beginning at a junction with state route number 23 in the
vicinity northwest of Sprague, thence northerly by way of
Edwall to a junction with state route number 2 in the vicinity
west of Reardan; also
Beginning at a junction with state route number 2 in the
vicinity of Reardan, thence northerly by way of Long Lake
across the Spokane river, thence northeasterly by way of
Springdale to a junction with state route number 395 in the
vicinity of Chewelah. [1970 ex.s. c 51 § 90.]
47.17.455
47.17.455 State route No. 240. A state highway to be
known as state route number 240 is established as follows:
Beginning at a junction with state route number 24 in the
vicinity east of Cold Creek, thence southeasterly by the most
feasible route across the Atomic Energy Commission Reservation to a junction with state route number 224 at Richland;
also
From that junction with state route number 224 at Richland, thence southerly to a junction with state route number
182 at Richland; also
From a junction with state route number 182 at Richland
southeasterly to a junction with state route number 395 at
Kennewick. The secretary may enter into negotiations with
appropriate federal agencies to secure right of way for the
highway over and across the Atomic Energy Commission
Reservation. [1985 c 177 § 3; 1984 c 7 § 135; 1970 ex.s. c 51
§ 92.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.17.430
47.17.430 State route No. 223. A state highway to be
known as state route number 223 is established as follows:
Beginning at a junction with state route number 22 in the
vicinity southeast of Toppenish, thence easterly to a junction
with state route number 12 in the vicinity of Granger. The
establishment of state route number 223 as defined in this
section shall be effective July 1, 1965. [1970 ex.s. c 51 § 87.]
47.17.460
47.17.460 State route No. 241. A state highway to be
known as state route number 241 is established as follows:
Beginning at a junction with state route number 22 in
Mabton, thence northerly and northeasterly by way of Sunnyside to a junction with state route number 24. [1991 c 342 §
23; 1987 c 199 § 20; 1970 ex.s. c 51 § 93.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.435
47.17.435 State route No. 224. A state highway to be
known as state route number 224 is established as follows:
Beginning at a junction with state route number 82 at
Kiona, thence northeasterly to a junction with state route
number 240 at Richland. [1987 c 199 § 19; 1970 ex.s. c 51 §
88.]
[Title 47 RCW—page 86]
47.17.465
47.17.465 State route No. 243. A state highway to be
known as state route number 243 is established as follows:
Beginning at a junction with state route number 24 north
of its crossing of the Columbia river, thence westerly and
northerly by way of Arrowsmith and Beverly to a junction
(2004 Ed.)
State Highway Routes
with state route number 26 south of the Columbia river bridge
at Vantage. [1970 ex.s. c 51 § 94.]
47.17.475
47.17.475 State route No. 260. A state highway to be
known as state route number 260 is established as follows:
Beginning at a junction with state route number 17 west
of Connell, thence easterly to a junction with state route number 395 in the vicinity of Connell, thence northeasterly by
way of Kahlotus to a junction with state route number 26 at
Washtucna. [1970 ex.s. c 51 § 96.]
47.17.480
47.17.480 State route No. 261. A state highway to be
known as state route number 261 is established as follows:
Beginning at a junction with state route number 12 at
Delaney, thence northwesterly to a junction with state route
number 260 in the vicinity of McAdam; also
Beginning at a junction with state route number 26 at
Washtucna, thence northerly to a junction with state route
number 90 at Ritzville. [1987 c 199 § 21; 1971 ex.s. c 73 §
12; 1970 ex.s. c 51 § 97.]
47.17.520
47.17.500
47.17.500 State route No. 274. A state highway to be
known as state route number 274 is established as follows:
Beginning at a junction with state route number 27 at
Tekoa, thence easterly to the Washington-Idaho boundary
line. [1970 ex.s. c 51 § 101.]
47.17.502
47.17.502 State route No. 276. A state highway to be
known as state route number 276 is established as follows:
Beginning at a junction with state route number 195 west
of Pullman, thence easterly and southeasterly to a junction
with state route number 270 east of Pullman. [1973 1st ex.s.
c 151 § 7.]
47.17.503
47.17.503 State route No. 278. A state highway to be
known as state route number 278 is established as follows:
Beginning at a junction with state route number 27 in
Rockford, thence easterly and southerly to the WashingtonIdaho boundary. [1991 c 342 § 26.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.505
47.17.481
47.17.481 State route No. 262. A state highway to be
known as state route number 262 is established as follows:
Beginning at a junction with state route number 26 east
of Royal City, thence northerly and easterly to a junction with
state route number 17 west of Warden. [1991 c 342 § 24.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.482
47.17.482 State route No. 263. A state highway to be
known as state route number 263 is established as follows:
Beginning at the port of Windust, thence easterly and
northerly to a junction with state route number 260 in Kahlotus. [1991 c 342 § 25.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.485
47.17.485 State route No. 270. A state highway to be
known as state route number 270 is established as follows:
Beginning at a junction with state route number 195 at
Pullman, thence easterly by the most feasible route to a point
on the Washington-Idaho boundary line. [1970 ex.s. c 51 §
98.]
47.17.490
47.17.490 State route No. 271. A state highway to be
known as state route number 271 is established as follows:
Beginning at a junction with state route number 27 in the
vicinity of Oakesdale, thence northwesterly to a junction with
state route number 195 in the vicinity south of Rosalia. [1970
ex.s. c 51 § 99.]
47.17.495
47.17.495 State route No. 272. A state highway to be
known as state route number 272 is established as follows:
Beginning at a junction with state route number 195 at
Colfax, thence easterly to a junction with state route number
27 at Palouse; also
Beginning at a junction with state route number 27 at
Palouse, thence northeasterly by the most feasible route to a
point on the Washington-Idaho boundary line. [1970 ex.s. c
51 § 100.]
(2004 Ed.)
47.17.505 State route No. 281. A state highway to be
known as state route number 281 is established as follows:
Beginning at a junction with state route number 90 in the
vicinity of George, thence northerly to a junction with state
route number 28 at Quincy; also
Beginning at a junction with state route number 281 at a
point north of the above described junction on state route
number 90, thence in a southeasterly direction to a junction
with state route number 90 in the vicinity east of George,
some 1.6 miles more or less, resulting in a wye connection
between state route number 281 and state route number 90.
[1971 ex.s. c 73 § 13; 1970 ex.s. c 51 § 102.]
47.17.510
47.17.510 State route No. 282. A state highway to be
known as state route number 282 is established as follows:
Beginning at a junction with state route number 28 in the
vicinity of Ephrata, thence southeasterly to a junction with
state route number 17 in the vicinity of Rocky Ford creek.
[1970 ex.s. c 51 § 103.]
47.17.515
47.17.515 State route No. 283. A state highway to be
known as state route number 283 is established as follows:
Beginning at a junction with state route number 281 in
the vicinity of Burke Junction, thence northeasterly by the
most feasible route to a junction with state route number 28 in
the vicinity west of Ephrata. [1970 ex.s. c 51 § 104.]
47.17.517
47.17.517 State route No. 285. A state highway to be
known as state route number 285 is established as follows:
Beginning at a junction with state route number 28 in
East Wenatchee, thence westerly across the Columbia river
and northwesterly to a junction with state route number 2 in
Wenatchee. [1991 c 342 § 27; 1977 ex.s. c 224 § 1.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.520
47.17.520 State route No. 290. A state highway to be
known as state route number 290 is established as follows:
Beginning at a junction with state route number 2 in Spokane, thence northeasterly by way of Millwood, Trentwood,
[Title 47 RCW—page 87]
47.17.525
Title 47 RCW: Public Highways and Transportation
and Newman Lake to the termination of Idaho state highway
number 53 at the Washington-Idaho boundary line; also
Beginning at a junction with state route number 90 in
Spokane, thence northerly to a junction with state route number 290 in the vicinity of Hamilton Street. [1977 ex.s. c 6 §
1; 1970 ex.s. c 51 § 105.]
47.17.525
47.17.525 State route No. 291. A state highway to be
known as state route number 291 is established as follows:
Beginning at a junction with state route number 2 in Spokane, thence northwesterly along the north bank of the Spokane river to the vicinity of Tumtum; and thence southwesterly along the north shore of Long Lake to a junction with
state route number 231 in the vicinity of the Little Falls Dam.
[1983 c 180 § 4; 1970 ex.s. c 51 § 106.]
system northwesterly to the state ferry terminal at Bainbridge
Island; also
From the state ferry terminal at Bainbridge Island,
thence northerly by the most feasible route to the north end of
Bainbridge Island, across Agate Pass, thence northwesterly
by the most feasible route to a junction with state route number 3 in the vicinity north of Poulsbo. [1994 c 209 § 7; 1970
ex.s. c 51 § 113.]
47.17.566
47.17.566 State route No. 307. A state highway to be
known as state route number 307 is established as follows:
Beginning at a junction with state route number 305 at
Poulsbo, thence northeasterly to a junction with state route
number 104 near Miller Lake. [1991 c 342 § 29.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.530
47.17.530 State route No. 292. A state highway to be
known as state route number 292 is established as follows:
Beginning at a junction with state route number 231 at
Springdale, thence easterly to a junction with state route
number 395 in the vicinity of Loon Lake. [1970 ex.s. c 51 §
107.]
47.17.540
47.17.540 State route No. 300. A state highway to be
known as state route number 300 is established as follows:
Beginning at the western boundary of the Belfair State
Park, thence generally easterly to a junction with state route
number 3 at Belfair. [1970 ex.s. c 51 § 109.]
47.17.567
47.17.567 State route No. 308. A state highway to be
known as state route number 308 is established as follows:
Beginning at a junction with state route number 3, thence
easterly to Keyport. [1987 c 199 § 23; 1971 ex.s. c 73 § 15.]
47.17.569
47.17.569 State route No. 310. A state highway to be
known as state route number 310 is established as follows:
Beginning at a junction with state route number 3 near
Oyster Bay, thence easterly to a junction with state route
number 304 in Bremerton. [1991 c 342 § 30.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.571
47.17.545
47.17.545 State route No. 302. A state highway to be
known as state route number 302 is established as follows:
Beginning at a junction with state route number 3 in the
vicinity of Allyn, thence easterly to a junction with state route
number 16 in the vicinity of Purdy. [1987 c 199 § 22; 1970
ex.s. c 51 § 110.]
47.17.571 State route No. 339. A state highway to be
known as state route number 339 is established as follows:
Beginning at the junction of state route number 160 at
the state ferry terminal at Vashon Heights, thence via the
state ferry system northeasterly to the junction with state
route number 519 at the state ferry terminal in Seattle. [1994
c 209 § 9.]
47.17.550
47.17.550 State route No. 303. A state highway to be
known as state route number 303 is established as follows:
Beginning at a junction with state route number 304 at
Bremerton, thence by way of the Warren Avenue bridge
across the Port Washington Narrows northerly to a junction
with state route number 3 in the vicinity north of Silverdale.
[1991 c 342 § 28; 1971 ex.s. c 73 § 14; 1970 ex.s. c 51 § 111.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.556
47.17.556 State route No. 304. A state highway to be
known as state route number 304 is established as follows:
Beginning at a junction with state route number 3 in
Bremerton, thence easterly to the ferry terminal in Bremerton; also
From the state ferry terminal at Bremerton via the state
ferry system easterly to the junction with state route number
519 at the state ferry terminal in Seattle. [1994 c 209 § 6;
1993 c 430 § 4.]
47.17.560
47.17.560 State route No. 305. A state highway to be
known as state route number 305 is established as follows:
Beginning at the junction with state route number 519 at
the state ferry terminal in Seattle, thence via the state ferry
[Title 47 RCW—page 88]
47.17.575
47.17.575 State route No. 395. A state highway to be
known as state route number 395 is established as follows:
Beginning at a junction with state route number 82 at
Kennewick, northerly to a junction with state route number
182 at Pasco; also
From a junction with state route number 182 at Pasco,
thence northeasterly by way of the vicinity of Mesa and Connell to a junction with state route number 90 at Ritzville; also
From a junction with state route number 2 in the vicinity
north of Spokane, thence northerly by way of the vicinity of
Colville and Kettle Falls to the international boundary line in
the vicinity of Laurier. [1985 c 177 § 4; 1979 ex.s. c 33 § 13;
1970 ex.s. c 51 § 116.]
47.17.577
47.17.577 State route No. 397. A state highway to be
known as state route number 397 is established as follows:
Beginning at Piert Road in the vicinity southeast of
Finely, thence northwesterly and northerly across the Columbia River, thence easterly and northerly to a junction with
state route number 395 in Pasco. [1993 c 430 § 5; 1991 c 342
§ 31.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
(2004 Ed.)
State Highway Routes
47.17.580
47.17.580 State route No. 401. A state highway to be
known as state route number 401 is established as follows:
Beginning at Point Ellice on state route number 101,
thence easterly and northerly to a junction with state route
number 4 in the vicinity north of Naselle. [1970 ex.s. c 51 §
117.]
47.17.655
47.17.630
47.17.630 State route No. 433. A state highway to be
known as state route number 433 is established as follows:
Beginning at the Washington-Oregon boundary on the
interstate bridge at Longview, thence northerly to a junction
with state route number 432 in Longview. [1991 c 342 § 34;
1987 c 199 § 25; 1970 ex.s. c 51 § 127.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.595
47.17.595 State route No. 405. A state highway to be
known as state route number 405 is established as follows:
Beginning at a junction with state route number 5 in the
vicinity south of Seattle, thence northeasterly to Renton,
thence northerly east of Lake Washington to a junction with
state route number 5 north of Seattle. [1970 ex.s. c 51 § 120.]
47.17.635
47.17.635 State route No. 500. A state highway to be
known as state route number 500 is established as follows:
Beginning at a junction with state route number 5 at
Vancouver, thence northeasterly to Orchards, thence southeasterly to a junction with state route number 14 at Camas.
[1970 ex.s. c 51 § 128.]
47.17.605
47.17.605 State route No. 409. A state highway to be
known as state route number 409 is established as follows:
Beginning at the South Ferry landing, as now located, or
as it may be relocated, on the south side of Puget Island,
thence generally northerly by the most feasible route to the
Puget Island bridge, thence crossing said bridge to a junction
with state route number 4 at the north approach of said bridge
at the town of Cathlamet: PROVIDED, That the state of
Washington shall not assume or pay any bond or bonds outstanding against said bridge, or interest on said bonds, but
said bond or bonds, and interest thereon, shall remain the sole
obligation of the obligors named on said bonds. [1970 ex.s. c
51 § 122.]
47.17.610
47.17.610 State route No. 410. A state highway to be
known as state route number 410 is established as follows:
Beginning at a junction with state route number 167 at
Sumner, thence easterly by way of Buckley, Enumclaw, and
Chinook Pass, to a junction with state route number 12 northwest of Yakima: PROVIDED, That until such time as state
route number 167 is constructed and opened to traffic on an
anticipated ultimate alignment from a junction with state
route number 5 near Tacoma easterly to Sumner on the north
side of the Puyallup river, the public highway between state
route number 5 in Tacoma and state route number 161 in
Sumner, on the south side of the Puyallup river, shall remain
on the state highway system. [1987 c 199 § 24; 1973 1st ex.s.
c 151 § 8; 1970 ex.s. c 51 § 123.]
47.17.615
47.17.615 State route No. 411. A state highway to be
known as state route number 411 is established as follows:
Beginning at a junction with state route number 432 in
Longview, thence northerly to a junction with state route
number 5 at Castle Rock. [1991 c 342 § 32; 1970 ex.s. c 51 §
124.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.625
47.17.625 State route No. 432. A state highway to be
known as state route number 432 is established as follows:
Beginning at a junction with state route number 4 in the
vicinity west of Longview, thence southeasterly to a junction
with state route number 5 south of Kelso. [1991 c 342 § 33;
1970 ex.s. c 51 § 126.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
(2004 Ed.)
47.17.640
47.17.640 State route No. 501—Erwin O. Rieger
Memorial Highway. A state highway to be known as state
route number 501 is established as follows:
Beginning at a junction with state route number 5 at
Vancouver, thence northerly by way of Lower River Road
and an extension thereof to Ridgefield, thence easterly to a
junction with state route number 5 in the vicinity south of La
Center. That portion of state route number 501 from the
northerly junction of N.W. Lower River Road to the Ridgefield city limits is designated "the Erwin O. Rieger Memorial
Highway." The department may enter into an agreement with
the Port of Vancouver, Clark county, or the United States
Army Engineers, or any combination thereof, to obtain material dredged from the Columbia river and have it stockpiled at
no expense to the state. [1991 c 78 § 1; 1984 c 7 § 136; 1970
ex.s. c 51 § 129.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.17.645
47.17.645 State route No. 502. A state highway to be
known as state route number 502 is established as follows:
Beginning at a junction with state route number 5 in the
vicinity north of Vancouver, thence easterly to a junction
with state route number 503 at Battleground. [1970 ex.s. c 51
§ 130.]
47.17.650
47.17.650 State route No. 503. A state highway to be
known as state route number 503 is established as follows:
Beginning at a junction with state route number 500 at
Orchards, thence northerly to a junction with state route number 502 at Battle Ground, thence northerly to Amboy, thence
northeasterly by way of Cougar to the Cowlitz-Skamania
county line; also
Beginning at a junction with state route number 503 in
the vicinity of Yale, thence westerly to a junction with state
route number 5 in the vicinity of Woodland. [1991 c 342 §
35; 1975 c 63 § 6; 1970 ex.s. c 51 § 131.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.655
47.17.655 State route No. 504—Spirit Lake Memorial Highway. A state highway to be known as state route
number 504, hereby designated the Spirit Lake Memorial
Highway, dedicated to the memory of those who lost their
lives in the 1980 eruption of Mt. St. Helens, is established as
follows:
[Title 47 RCW—page 89]
47.17.660
Title 47 RCW: Public Highways and Transportation
Beginning at a junction with state route number 5 in the
vicinity north of Castle Rock, thence easterly along the north
shore of Silver Lake by way of Silverlake and Toutle, past a
junction with state route number 505, thence by way of Kid
Valley and St. Helens to the former Spirit Lake. [1982 c 82 §
1; 1970 ex.s. c 51 § 132.]
47.17.695
47.17.695 State route No. 513. A state highway to be
known as state route number 513 is established as follows:
Beginning at a junction with state route number 520 in
Seattle, thence northerly and easterly to the vicinity of Sand
Point. [1991 c 342 § 38; 1971 ex.s. c 73 § 16; 1970 ex.s. c 51
§ 140.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.660
47.17.660 State route No. 505. A state highway to be
known as state route number 505 is established as follows:
Beginning in Winlock, thence via Toledo, easterly and
southerly to a junction with state route number 504 in the
vicinity north of Toutle. [1991 c 342 § 36; 1970 ex.s. c 51 §
133.]
47.17.705
47.17.705 State route No. 515. A state highway to be
known as state route number 515 is established as follows:
Beginning at a junction with state route number 516 in
the vicinity east of Kent, thence northerly to a junction with
state route number 900 in Renton. [1970 ex.s. c 51 § 142.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.710
47.17.665
47.17.665 State route No. 506. A state highway to be
known as state route number 506 is established as follows:
Beginning at Ryderwood, thence by way of Vader northeasterly to a junction with state route number 5 west of
Toledo. [1970 ex.s. c 51 § 134.]
47.17.670
47.17.670 State route No. 507. A state highway to be
known as state route number 507 is established as follows:
Beginning at a junction with state route number 5 in
Centralia, thence northerly by the most feasible route by way
of Bucoda to Tenino, thence northeasterly by way of Rainier,
Yelm and McKenna to a junction with state route number 7 in
the vicinity south of Tacoma. [1970 ex.s. c 51 § 135.]
47.17.710 State route No. 516. A state highway to be
known as state route number 516 is established as follows:
Beginning at a junction with state route number 509 in
the vicinity south of Des Moines, thence southeasterly to a
junction with state route number 5; also
From that junction with state route number 5, thence
easterly to a junction with state route number 167 in Kent,
thence easterly to a junction with state route number 169
south of Maple Valley. [1970 ex.s. c 51 § 143.]
47.17.715
47.17.715 State route No. 518. A state highway to be
known as state route number 518 is established as follows:
Beginning at a junction with state route number 509 near
Sunnydale, thence easterly to a junction with state route number 5 in the vicinity of Seattle. [1970 ex.s. c 51 § 144.]
47.17.675
47.17.675 State route No. 508. A state highway to be
known as state route number 508 is established as follows:
Beginning at a junction with state route number 5 south
of Chehalis, thence easterly by way of Onalaska to a junction
with state route number 7 at Morton. [1970 ex.s. c 51 § 136.]
47.17.680
47.17.680 State route No. 509. A state highway to be
known as state route number 509 is established as follows:
Beginning at a junction with state route number 705 at
Tacoma, thence northeasterly to a junction with state route
number 99 in the vicinity of Redondo; also
From a junction with state route number 516 at Des
Moines, thence northerly to a junction with state route number 99 in Seattle. [1991 c 342 § 37; 1979 ex.s. c 33 § 14; 1970
ex.s. c 51 § 137.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.685
47.17.685 State route No. 510. A state highway to be
known as state route number 510 is established as follows:
Beginning at a junction with state route number 5, thence
southeasterly via St. Clair to a junction with state route number 507 at Yelm. [1970 ex.s. c 51 § 138.]
47.17.690
47.17.690 State route No. 512. A state highway to be
known as state route number 512 is established as follows:
Beginning at a junction with state route number 5 south
of Tacoma, thence easterly to a junction with state route number 7 south of Tacoma, thence easterly to a junction with state
route number 167 in the vicinity of Puyallup. [1970 ex.s. c 51
§ 139.]
[Title 47 RCW—page 90]
47.17.717
47.17.717 State route No. 519. A state highway to be
known as state route number 519 is established as follows:
Beginning at a junction with state route number 90 in
Seattle, thence westerly, and northerly to the Washington
state ferry terminal. [1991 c 342 § 39.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.720
47.17.720 State route No. 520. A state highway to be
known as state route number 520 is established as follows:
Beginning at a junction with state route number 5 in
Seattle, thence easterly via the Evergreen Point bridge to a
junction with state route number 202 in the vicinity of Redmond. [1970 ex.s. c 51 § 145.]
47.17.725
47.17.725 State route No. 522. A state highway to be
known as state route number 522 is established as follows:
Beginning at Seattle in King county, thence easterly by
the most feasible route to the north of Lake Washington by
way of Bothell to a junction with state route number 202 near
Bothell; also
From that junction with state route number 202 near
Bothell, thence northeasterly by the most feasible route to a
junction with state route number 2 in the vicinity of Monroe.
[1970 ex.s. c 51 § 146.]
47.17.727
47.17.727 State route No. 523. A state highway to be
known as state route number 523 is established as follows:
Beginning at a junction with state route number 99 and
Northeast 145th Street in Seattle, thence easterly to a junction
with state route number 522. [1991 c 342 § 40.]
(2004 Ed.)
State Highway Routes
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.795
junction with state route number 528 in Marysville. [1991 c
342 § 42; 1971 ex.s. c 73 § 19.]
47.17.730
47.17.730 State route No. 524. A state highway to be
known as state route number 524 is established as follows:
Beginning at a junction with state route number 104 at
Edmonds, thence northeasterly to a junction with state route
number 5 in the vicinity of Lynnwood, thence easterly to a
junction with state route number 522 near Maltby. [1991 c
342 § 41; 1984 c 7 § 137; 1970 ex.s. c 51 § 147.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
Severability—1984 c 7: See note following RCW 47.01.141.
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.755
47.17.755 State route No. 530. A state highway to be
known as state route number 530 is established as follows:
Beginning at a junction with state route number 5 in the
vicinity west of Arlington, thence easterly and northerly by
way of Darrington to a junction with state route number 20 in
the vicinity of Rockport. [1991 c 342 § 43; 1983 c 131 § 1;
1971 ex.s. c 73 § 20; 1970 ex.s. c 51 § 152.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.735
47.17.735 State route No. 525. A state highway to be
known as state route number 525 is established as follows:
Beginning at a junction with state route number 5 in the
vicinity south of Everett, thence northwesterly to the state
ferry terminal at Mukilteo; also
From the junction with state route number 526 at Mukilteo, thence southerly to a junction with state route number
525; also
From the state ferry terminal at Mukilteo via the state
ferry system northerly to the state ferry terminal at Clinton;
also
From the state ferry terminal at Clinton, thence northwesterly to a junction with state route number 20 in the vicinity east of Keystone. [2001 c 130 § 1; 1994 c 209 § 8; 1973
1st ex.s. c 151 § 15; 1970 ex.s. c 51 § 148.]
47.17.757
47.17.757 State route No. 531. A state highway to be
known as state route number 531 is established as follows:
Beginning at Wenberg state park, thence northerly and
easterly to a junction with state route number 9 in the vicinity
north of Marysville. [1991 c 342 § 44.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.760
47.17.760 State route No. 532. A state highway to be
known as state route number 532 is established as follows:
Beginning at a point on Camano Island known as
McEacherns Corner, thence easterly over a bridge and by
way of Stanwood to a junction with state route number 530 in
the vicinity of Stanwood, thence easterly to a junction with
state route number 5 in the vicinity east of Stanwood. [1970
ex.s. c 51 § 153.]
47.17.740
47.17.740 State route No. 526. A state highway to be
known as state route number 526 is established as follows:
Beginning at a junction with state route number 525 at
Mukilteo, thence easterly to a junction with state route number 5 in the vicinity of its junction with state route number
527. [1970 ex.s. c 51 § 149.]
47.17.745
47.17.745 State route No. 527. A state highway to be
known as state route number 527 is established as follows:
Beginning at a junction with state route number 522 in
the vicinity of Bothell, thence northerly to a junction with
state route number 5 in the vicinity south of Everett. [1970
ex.s. c 51 § 150.]
47.17.750
47.17.750 State route No. 528. A state highway to be
known as state route number 528 is established as follows:
Beginning at a junction with state route number 5 near
Marysville, thence easterly to a junction with state route
number 9. Until such time as state route number 528 from
Marysville to a junction with state route number 9 is actually
constructed on the location adopted by the department, no
existing city streets or county roads may be maintained or
improved by the department as a temporary route of state
route number 528. [1984 c 7 § 138; 1971 ex.s. c 73 § 18;
1970 ex.s. c 51 § 151.]
47.17.765
47.17.765 State route No. 534. A state highway to be
known as state route number 534 is established as follows:
Beginning at a junction with state route number 5 at
Conway, thence southeasterly to a junction with state route
number 9 at McMurray. [1970 ex.s. c 51 § 154.]
47.17.770
47.17.770 State route No. 536. A state highway to be
known as state route number 536 is established as follows:
Beginning at a junction with state route number 20 at
Fredonia, thence easterly to a junction with state route number 5 at Mt. Vernon. [1973 1st ex.s. c 151 § 16; 1970 ex.s. c
51 § 155.]
47.17.780
47.17.780 State route No. 538. A state highway to be
known as state route number 538 is established as follows:
Beginning at a junction with state route number 5 at Mt.
Vernon, thence easterly to a junction with state route number
9. [1970 ex.s. c 51 § 157.]
47.17.785
47.17.785 State route No. 539. A state highway to be
known as state route number 539 is established as follows:
Beginning at a junction with state route number 5 at
Bellingham, thence northerly to the international boundary in
the vicinity east of Delta. [1970 ex.s. c 51 § 158.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.17.795
47.17.752
47.17.752 State route No. 529. A state highway to be
known as state route number 529 is established as follows:
Beginning at a junction with state route number 5 in
Everett, thence westerly and northerly through Everett to a
(2004 Ed.)
47.17.795 State route No. 542. A state highway to be
known as state route number 542 is established as follows:
Beginning at a junction with state route number 5 at
Bellingham, thence easterly to a point in the vicinity of Austin Pass in Whatcom county. [1970 ex.s. c 51 § 160.]
[Title 47 RCW—page 91]
47.17.797
Title 47 RCW: Public Highways and Transportation
47.17.797
47.17.797 State route No. 543. A state highway to be
known as state route number 543 is established as follows:
Beginning at a junction with state route number 5 in the
vicinity of Blaine, thence northerly to the international
boundary. [1971 ex.s. c 73 § 22.]
47.17.800
47.17.800 State route No. 544. A state highway to be
known as state route number 544 is established as follows:
Beginning at a junction with state route number 539 in
the vicinity of Wiser lake, thence northeasterly by way of
Everson to a junction with state route number 9 in the vicinity
of Nooksack. [1970 ex.s. c 51 § 161.]
47.17.805
47.17.805 State route No. 546. A state highway to be
known as state route number 546 is established as follows:
Beginning at a junction with state route number 539
approximately 2.7 miles south of the international boundary,
thence easterly by way of Van Buren to a junction with state
route number 9. [1970 ex.s. c 51 § 162.]
47.17.806
47.17.806 State route No. 547. A state highway to be
known as state route number 547 is established as follows:
Beginning at the junction of state route number 542 in
the vicinity of Kendall, thence northwesterly to a junction
with state route number 9 at Sumas. [1984 c 197 § 2.]
47.17.807
47.17.807 State route No. 548. A state highway to be
known as state route number 548 is established as follows:
Beginning at a junction with state route number 5 in the
vicinity north of Ferndale, thence westerly and northerly to a
junction with state route number 5 in Blaine. [1991 c 342 §
45.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.808
47.17.808 State route No. 599. A state highway to be
known as state route number 599 is established as follows:
Beginning in the vicinity south of Seattle at a junction
with state route number 5, thence in a northwesterly direction
west of the Duwamish river to a junction with state route
number 99 in the vicinity of South 118 street south of Seattle.
[1971 ex.s. c 73 § 23.]
47.17.815
47.17.815 State route No. 702. A state highway to be
known as state route number 702 is established as follows:
Beginning at a junction with state route number 507 at
McKenna, thence easterly to a junction with state route number 7. [1970 ex.s. c 51 § 164.]
47.17.818
47.17.818 State route No. 704. A state highway to be
known as state route number 704 is established as follows:
Beginning at a junction with state route number 5 in south
Pierce county, thence easterly across Fort Lewis to a junction
with state route number 7. [2002 c 56 § 304.]
Captions and subheadings not law—Severability—2002 c 56: See
RCW 36.120.900 and 36.120.901.
way in the Tacoma central business district. [1979 ex.s. c 33
§ 15.]
47.17.820
47.17.820 State route No. 706—Road to Paradise. A
state highway to be known as state route number 706, designated the Road to Paradise, is established as follows:
Beginning at a junction with state route number 7 at
Elbe, thence easterly to a southwest entrance to Mt. Rainier
National Park. [1990 c 97 § 1; 1970 ex.s. c 51 § 165.]
47.17.821
47.17.821 State route No. 730. A state highway to be
known as state route number 730 is established as follows:
Beginning at the Washington-Oregon boundary line,
thence northeasterly to a junction with state route number 12
south of Wallula. [1985 c 177 § 5.]
47.17.823
47.17.823 State route No. 821. A state highway to be
known as state route number 821 is established as follows:
Beginning at a junction with state route number 82 in the
vicinity north of Yakima, thence northerly to a junction with
state route number 82 south of Ellensburg. [1973 1st ex.s. c
151 § 9.]
47.17.824
47.17.824 State route No. 823. A state highway to be
known as state route number 823 is established as follows:
Beginning at the junction of state route number 82 in the
vicinity of Selah northerly by way of Selah and easterly to a
junction with state route number 821 in the vicinity of the firing center interchange.
Before award of any construction contract for improvements to state route number 823 under either program A or
program C, the department of transportation shall secure a
portion of the construction cost from the city of Selah or
Yakima county, or both. [1991 c 342 § 46; 1984 c 197 § 3.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.825
47.17.825 State route No. 900. A state highway to be
known as state route number 900 is established as follows:
Beginning at a junction with state route number 5 in
Seattle near the Duwamish River, thence southerly by way of
Renton to a junction with state route number 90 in the vicinity of Issaquah. [1991 c 342 § 47; 1979 ex.s. c 33 § 16; 1970
ex.s. c 51 § 166.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.835
47.17.835 State route No. 902. A state highway to be
known as state route number 902 is established as follows:
Beginning at a junction with state route number 90,
thence northwesterly, northerly, northeasterly, and easterly,
via the town of Medical Lake, to a junction with state route
number 90 at a point approximately three miles northeast of
Four Lakes. [1991 c 342 § 49; 1970 ex.s. c 51 § 168.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.840
47.17.819
47.17.819 State route No. 705. A state highway to be
known as state route number 705 is established as follows:
Beginning at a junction with state route number 5 in
Tacoma, thence northerly to a junction with Schuster Park[Title 47 RCW—page 92]
47.17.840 State route No. 903. A state highway to be
known as state route number 903 is established as follows:
Beginning at a junction with state route number 970 in
the vicinity of Cle Elum, thence northwesterly by way of Cle
Elum and Roslyn to the National Forest boundary in the
(2004 Ed.)
Miscellaneous Projects
47.20.570
vicinity of Lake Cle Elum. [1975 c 63 § 7; 1970 ex.s. c 51 §
169.]
Facility
State of Washington Inventory of
Bridges and Structures
(SWIBS) Number
47.17.845
47.17.845 State route No. 904. A state highway to be
known as state route number 904 is established as follows:
Beginning at a junction with state route number 90 in the
vicinity of Tyler, thence northeasterly via Cheney to a junction with state route number 90 in the vicinity of Four Lakes.
[1971 ex.s. c 73 § 25; 1970 ex.s. c 51 § 170.]
S. Fork Skykomish River Bridge
Manette Bridge
Grays River Bridge (Rosburg)
Elochoman Bridge
WN-002000487032
WN-303250032700
WN-403000064300
WN-407000023300
[1991 c 342 § 55.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.850
47.17.850 State route No. 906. A state highway to be
known as state route number 906 is established as follows:
Beginning at a junction with state route number 90 at the
West Summit interchange of Snoqualmie Pass, thence along
the alignment of the state route number 90 as it existed on
May 11, 1967, in a southeasterly direction to a junction with
state route number 90 at the Hyak interchange.
The legislative transportation committee, the house and
senate transportation committees, and the department shall
undertake appropriate studies to evaluate state route number
906 to determine whether or not it should permanently
remain on the state system. [1984 c 7 § 139; 1977 ex.s. c 235
§ 16; 1971 ex.s. c 73 § 26; 1970 ex.s. c 51 § 171.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.17.855
47.17.855 State route No. 908. A state highway to be
known as state route number 908 is established as follows:
Beginning at a junction with state route number 405 in
Kirkland, thence easterly to a junction with state route number 202 in the vicinity of Redmond. [1991 c 342 § 50; 1971
ex.s. c 73 § 27.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.990
47.17.990 Construction—Refunds to counties composed of islands. Nothing in this chapter precludes the
refund of all vehicle license fees and motor vehicle fuel tax
directly or indirectly paid by the residents of those counties
composed entirely of islands and that have neither a fixed
physical connection with the mainland nor any state highways on any of the islands of which they are composed, as
authorized under RCW 46.68.080. [1994 c 209 § 10.]
Chapter 47.20
Sections
47.20.570
47.20.580
47.20.590
47.20.600
47.20.605
47.20.610
47.20.620
47.20.630
47.17.917
47.17.917 State route No. 970. A state highway to be
known as state route number 970 is established as follows:
Beginning at a junction with state route number 90 in the
vicinity of Cle Elum, thence northeasterly by way of Teanaway to a junction with state route number 97 in the vicinity
of Virden. [1975 c 63 § 12.]
47.20.635
47.20.640
47.20.645
47.20.647
47.20.653
47.20.700
47.17.919
47.17.919 State route No. 971. A state highway to be
known as state route number 971 is established as follows:
Beginning at a junction with state route number 97-alternate in the vicinity of Winesap, thence northerly to Lake
Chelan state park, thence southeasterly to a junction with
state route number 97-alternate west of Chelan. [1991 c 342
§ 51.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.17.960
47.17.960 Local bridges—Department responsibility. Although not part of the state highway system, the
bridges designated in this section shall remain the continuing
responsibility of the Washington state department of transportation. Continuing responsibility includes all structural
maintenance, repair, and replacement of the substructure,
superstructure, and roadway deck. Local agencies are responsible for snow and ice control, sweeping, striping, lane marking, and channelization.
(2004 Ed.)
Chapter 47.20 RCW
MISCELLANEOUS PROJECTS
47.20.710
47.20.715
47.20.720
47.20.725
47.20.730
47.20.735
47.20.780
47.20.785
47.20.900
Manette bridge authorized.
Washington State University highway authorized.
University of Washington approach authorized.
Washington State University highway, University of Washington approach—Acquisition of property.
Washington State University highway, University of Washington approach—Public use.
Washington State University highway, University of Washington approach—Condemnation.
Washington State University highway, University of Washington approach—Measure of damage to buildings.
Washington State University highway, University of Washington approach—Sale of buildings, personalty, acquired in
acquisition of land.
University of Washington approach—Ordinance requisite—
Construction and maintenance.
Reestablishment and redesignation of intersections when highway relocated.
Interstate 90 corridor—Legislative finding.
Interstate 90 corridor—Withdrawal of local governments from
project—Effect on use of state funds.
Interstate 90 corridor—Court proceedings, priority.
State route No. 504 (Spirit Lake Memorial Highway)—Extension and parking facilities.
Quinault Tribal Highway—Agreement authorized—Route.
Quinault Tribal Highway—Maintenance, operation, improvements—Intersections, access.
Quinault Tribal Highway—Certain portion as limited access.
Quinault Tribal Highway—Acquisition of remaining right of
way.
Quinault Tribal Highway—Department as agent.
Quinault Tribal Highway—Authority to seek federal funding.
Design-build—Competitive bidding.
Design-build—Qualified projects.
Severability—1975 1st ex.s. c 272.
47.20.570
47.20.570 Manette bridge authorized. The department is authorized and directed to construct a bridge across
Port Washington Narrows connecting state route number 304
at or near Bremerton with state route number 303 on the
Manette Peninsula; to make surveys and plans; and to condemn or otherwise acquire such lands as are necessary or
proper for approaches to the bridge or for the relocation of
any portion of the highway to locate the bridge at the most
feasible place. The bridge shall become and be maintained as
[Title 47 RCW—page 93]
47.20.580
Title 47 RCW: Public Highways and Transportation
a part of the state highway system. [1984 c 7 § 140; 1970
ex.s. c 51 § 173; 1961 c 13 § 47.20.570. Prior: 1947 c 4 p 6 §
2; Rem. Supp. 1947 § 6584a-1.]
Severability—1984 c 7: See note following RCW 47.01.141.
action is brought that the real estate, rights, and interests are
necessary for public use for the purposes sought. [1984 c 7 §
145; 1961 c 13 § 47.20.610. Prior: 1945 c 27 § 5; Rem. Supp.
1945 § 6402-44.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.20.580
47.20.580 Washington State University highway
authorized. The department is hereby authorized and
directed to locate, construct, pave, and maintain a suitable
highway on the most feasible route beginning in the vicinity
of the stadium of the Washington State University and
extending in a northwesterly direction to a connection with
state route number 27, near the north boundary of the city of
Pullman. [1984 c 7 § 141; 1970 ex.s. c 51 § 174; 1961 c 13 §
47.20.580. Prior: 1945 c 27 § 1; Rem. Supp. 1945 § 640240.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.20.590
47.20.590 University of Washington approach authorized. The department is hereby authorized and directed to
select and locate a suitable and fitting street and highway
approach to the University of Washington campus in the city
of Seattle, from Roosevelt Way to Fifteenth Avenue northeast, including an underpass beneath the surface of Roosevelt
Way, and necessary approaches to the underpass. [1984 c 7
§ 142; 1961 c 13 § 47.20.590. Prior: 1945 c 27 § 2; Rem.
Supp. 1945 § 6402-41.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.20.600
47.20.600 Washington State University highway,
University of Washington approach—Acquisition of
property. The department is hereby authorized and directed
in the name of the state of Washington to acquire by purchase, gift, or condemnation, any and all private real estate,
rights, and interests necessary to locate, construct, and maintain the Washington State University highway and the University of Washington approach provided for herein. [1984 c
7 § 143; 1961 c 13 § 47.20.600. Prior: 1945 c 27 § 3; Rem.
Supp. 1945 § 6402-42.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.20.605
47.20.605 Washington State University highway,
University of Washington approach—Public use. The use
of the private real estate, rights, and interests, selected by the
department as necessary for the approach, underpass, and
highway is declared to be a public use. [1984 c 7 § 144; 1961
c 13 § 47.20.605. Prior: 1945 c 27 § 4; Rem. Supp. 1945 §
6402-43. Formerly RCW 47.20.600, part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.20.610
47.20.610 Washington State University highway,
University of Washington approach—Condemnation. In
case of condemnation to secure any real estate, rights, or
interests authorized under this chapter, the court actions shall
be brought in the name of the state of Washington in the
respective counties in which the real estate is located and in
the manner provided by law for acquiring property for public
uses for the state. In such actions the selection of the real
estate, rights, and interests by the department is, in the
absence of bad faith, arbitrary, capricious, or fraudulent
action, conclusive upon the court and judge before which the
[Title 47 RCW—page 94]
47.20.620
47.20.620 Washington State University highway,
University of Washington approach—Measure of damage to buildings. If, in any condemnation proceeding authorized herein, it appears that there is any building wholly or
partially upon any of the real estate to be taken, the jury, or
the court, if the jury be waived, shall add to the value of the
land taken the amount of damages to the building. If the
entire building is taken, or if the building is damaged so that
it cannot be readjusted to the real estate not taken, then the
measure of damages shall be the fair cash value of the building. If part of a building is taken or damaged and the building
can be readjusted or replaced on the real estate remaining,
then the measure of damages shall be the cost of readjusting
or moving the building, or part thereof left, together with the
depreciation in the market value of said building by reason of
said readjustment or moving. [1961 c 13 § 47.20.620. Prior:
1945 c 27 § 6; Rem. Supp. 1945 § 6402-45.]
47.20.630
47.20.630 Washington State University highway,
University of Washington approach—Sale of buildings,
personalty, acquired in acquisition of land. The department shall have power to sell at public or private sale any
building, equipment, or fixtures acquired in the acquisition of
the real estate for such price as it shall fix and to execute to
the purchaser upon payment of the purchase price a bill of
sale in the name of the state. Proceeds of the sale shall be
placed in the motor vehicle fund of the state treasury. The
department shall have power to permit occupation of buildings on real estate so acquired for such specified limited time
as it deems will lapse before construction of the approach,
underpass, and highway can be undertaken; and in behalf of
the state it may be shown in any condemnation proceeding
the period during which such occupancy will be permitted for
the purpose of mitigating damages. [1984 c 7 § 146; 1961 c
13 § 47.20.630. Prior: 1945 c 27 § 7; Rem. Supp. 1945 §
6402-46.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.20.635
47.20.635 University of Washington approach—
Ordinance requisite—Construction and maintenance.
No action may be taken by the department for the acquisition
of real estate, rights, and interests for the approach and underpass to the University of Washington unless and until the city
of Seattle, through its legislative authority, enacts an ordinance providing that the city of Seattle will, within three
months after the necessary real estate, rights, and interests
have been secured by the state as provided in this chapter,
begin the work of grading, paving, and such other work as is
necessary to complete and render available for use of the public, the approach and underpass and approaches to the underpass; and further providing that the city of Seattle shall thereafter keep and maintain the approach and underpass and
approach to the underpass in a good state of repair and suitable for public travel and use, which construction and main(2004 Ed.)
Miscellaneous Projects
tenance work the city of Seattle is hereby authorized and
empowered to do and perform. [1984 c 7 § 147; 1961 c 13 §
47.20.635. Prior: 1945 c 27 § 8; Rem. Supp. 1945 § 640247.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.20.640
47.20.640 Reestablishment and redesignation of
intersections when highway relocated. In any case where a
state highway is relocated in such manner that it ceases to
intersect another state highway, the department is authorized
to extend and designate either of the state highways to reestablish an appropriate intersection. [1984 c 7 § 148; 1967
ex.s. c 145 § 44; 1961 c 13 § 47.20.640. Prior: 1953 c 82 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.20.645
47.20.645 Interstate 90 corridor—Legislative finding. The legislature finds that the department initiated route
studies for the location of that segment of the national system
of interstate and defense highways (interstate system)
between south Bellevue and state route No. 5 in Seattle in
1957 culminating in a corridor public hearing and adoption of
a corridor in 1963; that thereafter the department, utilizing a
multidisciplinary design team and soliciting the broadest
public participation, developed a series of designs culminating in a public design hearing in 1970, a public limited access
hearing in 1971, and adoption of a design and limited access
plan for the facility in 1971; that commencing in 1970 the
proposed facility has been the subject of numerous lawsuits
and administrative proceedings that have prevented advancement of the project to construction; that since further development of the project was enjoined by federal courts in 1971
the cost of constructing the project has increased by more
than one hundred million dollars; that the traffic congestion
and traffic hazards existing in the existing highway corridor
between south Bellevue, Mercer Island, and the city of Seattle are no longer tolerable; that after more than seventeen
years of studies the public interest now requires that final
decisions regarding the appropriate system for meeting the
transportation requirements between south Bellevue and the
city of Seattle be made promptly and in accordance with a
prescribed schedule.
It is therefore the sense of the legislature that further protracted delay in establishing the transportation system to be
constructed between south Bellevue and state route No. 5 in
the city of Seattle is contrary to the interest of the people of
this state and can no longer be tolerated as acceptable public
administration. Accordingly the schedule for finally determining the character of transportation modes between south
Bellevue and state route No. 5 in the city of Seattle as set
forth in RCW 47.20.645 through 47.20.653 and 47.20.900 is
adopted as the public policy of this state. [1984 c 7 § 149;
1975 1st ex.s. c 272 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.20.647
47.20.647 Interstate 90 corridor—Withdrawal of
local governments from project—Effect on use of state
funds. (1) The Puget Sound council of governments (until
July 1, 1975, known as the Puget Sound governmental conference) now engaged in a study of the withdrawal from the
interstate system of that segment of state route No. 90
(2004 Ed.)
47.20.700
between the south Bellevue interchange and the Connecticut
street interchange on state route No. 5 and the substitution of
public mass transit projects in lieu thereof as authorized by
section 103(e)(4) of Title 23, United States Code, is directed
to complete all phases of the study by November 1, 1975.
(2) No later than January 15, 1976, the city councils of
Seattle, Mercer Island and Bellevue and the county council of
King County shall each by resolution either approve or disapprove a request to withdraw from the interstate system the
segment of state route No. 90 between south Bellevue interchange and the Connecticut street interchange on state route
No. 5. Nothing in this subsection shall be construed as requiring the city or county councils to adopt by January 15, 1976
any proposal for substitute mass transit projects.
(3) If at least three of the four city and county councils
request withdrawal from the interstate system of the designated segment of state route No. 90 by January 15, 1976, and
such request is thereafter concurred in by the governor and
the Puget Sound council of governments, such determination
shall be final as it relates to the state of Washington and
except as may be required to terminate the project in an
orderly manner, no moneys shall thereafter be expended from
the motor vehicle fund for further development of the designated section of highway as an interstate highway without
further express authorization of the legislature.
(4) If fewer than three of the four city and county councils request withdrawal from the interstate system of the designated segment of state route No. 90 by January 15, 1976, or
if the governor does not concur in the withdrawal request,
then no tax revenues collected by the state of Washington
shall thereafter be expended for the construction of substitute
public mass transit projects in the Seattle metropolitan area
pursuant to section 103(e)(4) of Title 23, United States Code,
without further express authorization of the legislature.
[1975 1st ex.s. c 272 § 2.]
47.20.653
47.20.653 Interstate 90 corridor—Court proceedings, priority. State court proceedings instituted to challenge the validity of any steps taken in pursuance of the construction of the segment of the interstate system between
south Bellevue and state route No. 5 in Seattle, or the construction of substitute public mass transit projects in lieu
thereof, shall take precedence over all other causes not
involving the public interest in all courts of this state to the
end construction of such facilities may be expedited to the
fullest. The legislature of the state of Washington respectfully
requests of the federal judiciary that challenges instituted in
the federal courts relating to the validity of steps leading to
the construction of the designated interstate highway or substitute public mass transit projects in lieu thereof be expedited to the fullest. [1975 1st ex.s. c 272 § 5.]
47.20.700
47.20.700 State route No. 504 (Spirit Lake Memorial
Highway)—Extension and parking facilities. The department of transportation may provide for the construction of an
extension of state route number 504 from the vicinity of
Maple Flats to the vicinity of the United States Corps of
Engineers debris dam on the north fork of the Toutle river on
an alignment to be approved by the department of transportation. The department may enter into an agreement with the
[Title 47 RCW—page 95]
47.20.710
Title 47 RCW: Public Highways and Transportation
principal owner of the necessary right of way providing as
follows:
(1) The owner of the right of way shall construct the
highway extension and public parking facilities as specified
by the department of transportation.
(2) The owner of the right of way shall convey to the
state, right of way for the highway extension a minimum of
one hundred fifty feet in width (except right of way presently
under the control of the department of natural resources),
together with areas for public parking facilities as designated
by the department of transportation.
(3) The department of transportation shall reimburse the
present owner of the right of way for the actual cost of construction of the highway extension and the public parking
facilities.
(4) The construction of the highway extension and public
parking facilities shall be completed within one year after
March 27, 1982.
The department of transportation may acquire that part
of the right of way necessary for the highway extension that
is now under the control of the department of natural
resources in the manner provided in RCW 47.12.023 through
47.12.029.
All expenditures by the department of transportation
pursuant to this section shall be from appropriations for the
construction of category A projects. [1982 c 82 § 2.]
47.20.710
47.20.710 Quinault Tribal Highway—Agreement
authorized—Route. The department of transportation is
authorized to enter into a cooperative agreement with the
governing authority for the Indian peoples of the Quinault
Indian Reservation and appropriate agencies of the United
States for the location, design, right of way acquisition, construction, and maintenance of a highway beginning at the
south boundary of the Quinault Indian reservation on state
route number 109, thence northerly along the present right of
way of state route number 109 to the township line, thence
inland and northerly across the Raft river to an intersection
with state route number 101 south of Queets. The highway
shall be known as the "Tribal Highway" and may also be designated by the department as state route number 109. It is
anticipated that this highway construction will be funded
from federal sources other than normal federal aid highway
allocations. [1985 c 228 § 1.]
State route number 109: RCW 47.17.200.
47.20.715
47.20.715 Quinault Tribal Highway—Maintenance,
operation, improvements—Intersections, access. As a
part of the agreement, the department may assume responsibility for the operation and maintenance and future improvement of the highway. The agreement may also reserve to the
governing authority for the Indian peoples of the Quinault
Indian Reservation authority to construct public road intersections or grade separation crossings of the highway. Existing rights of access from adjoining property to existing state
route number 109 from the south reservation boundary to the
township line shall not be affected by RCW 47.20.710
through 47.20.735 or the agreement authorized by RCW
47.20.710. [1985 c 228 § 2.]
[Title 47 RCW—page 96]
47.20.720
47.20.720 Quinault Tribal Highway—Certain portion as limited access. The department is authorized to
determine the location of the highway from the township line
to a junction with state route number 101 after consultations
with the governing authority for the Indian peoples of the
Quinault Indian Reservation and the bureau of Indian affairs.
The department may then proceed with the establishment of
this section of the highway as a limited access facility in the
manner prescribed in RCW 47.52.131 through 47.52.137 and
47.52.195 (and the administrative rules adopted by the
department to implement those sections), subject, however,
to the following conditions: (1) The access report required by
RCW 47.52.131 shall be approved by the governing authority
for the Indian peoples of the Quinault Indian Reservation
before public hearings; and (2) the final limited access plan
adopted pursuant to RCW 47.52.137 at the conclusion of the
public hearing, or after any appeal from it has been decided,
shall be approved by the governing authority for the Indian
peoples of the Quinault Indian Reservation and the bureau of
Indian affairs before right of way is acquired for this section
of highway. [1985 c 228 § 3.]
47.20.725
47.20.725 Quinault Tribal Highway—Acquisition of
remaining right of way. The department is authorized to
acquire the remaining right of way for the Tribal Highway by
purchase or by condemnation under state or federal eminent
domain statutes. The secretary of transportation pursuant to
the agreement is authorized to convey by deed to the governing authority for the Indian peoples of the Quinault Indian
Reservation the right of way to the entire highway when fully
acquired in return for a conveyance by the governing authority for the Indian peoples of the Quinault Indian Reservation
to the state of Washington of a perpetual easement for public
travel on the through lanes and shoulders of the highway
when constructed. The agreement may also authorize the
governing authority for the Indian peoples of the Quinault
Indian Reservation to convey to the United States an easement to construct, maintain, and repair the highway improvements if such an easement is required by regulations of the
bureau of Indian affairs. [1985 c 228 § 4.]
47.20.730
47.20.730 Quinault Tribal Highway—Department as
agent. Except as otherwise provided by RCW 47.20.710
through 47.20.735 or by the agreement authorized by RCW
47.20.710, the department may proceed with the location,
design, acquisition of right of way, construction, and maintenance of the highway as an agent of the governing authority
for the Indian peoples of the Quinault Indian Reservation in
accordance with applicable state or federal law. [1985 c 228
§ 5.]
47.20.735
47.20.735 Quinault Tribal Highway—Authority to
seek federal funding. The department is authorized to join
with the governing authority for the Indian peoples of the
Quinault Indian Reservation to seek federal funding for the
construction of the Tribal Highway. [1985 c 228 § 6.]
47.20.780
47.20.780 Design-build—Competitive bidding.
(Expires April 30, 2008.) The department of transportation
shall develop a process for awarding competitively bid high(2004 Ed.)
Combination Highway Routes
way construction contracts for projects over ten million dollars that may be constructed using a design-build procedure.
As used in this section and RCW 47.20.785, "design-build
procedure" means a method of contracting under which the
department of transportation contracts with another party for
the party to both design and build the structures, facilities,
and other items specified in the contract.
The process developed by the department must, at a minimum, include the scope of services required under the
design-build procedure, contractor prequalification requirements, criteria for evaluating technical information and
project costs, contractor selection criteria, and issue resolution procedures.
This section expires April 30, 2008. [2001 c 226 § 2.]
Findings—Purpose—2001 c 226: "The legislature finds and declares
that a contracting procedure that facilitates construction of transportation
facilities in a more timely manner may occasionally be necessary to ensure
that construction can proceed simultaneously with the design of the facility.
The legislature further finds that the design-build process and other alternative project delivery concepts achieve the goals of time savings and avoidance of costly change orders.
The legislature finds and declares that a 2001 audit, conducted by Talbot, Korvola & Warwick, examining the Washington state ferries' capital
program resulted in a recommendation for improvements and changes in
auto ferry procurement processes. The auditors recommended that auto ferries be procured through use of a modified request for proposals process
whereby the prevailing shipbuilder and Washington state ferries engage in a
design and build partnership. This process promotes ownership of the design
by the shipbuilder while using the department of transportation's expertise in
ferry design and operations. Alternative processes like design-build partnerships can promote innovation and create competitive incentives that increase
the likelihood of finishing projects on time and within the budget.
The purpose of this act is to authorize the department's use of a modified request for proposals process for procurement of auto ferries, and to prescribe appropriate requirements and criteria to ensure that contracting procedures for this procurement process serve the public interest." [2001 c 226 §
1.]
47.20.785 Design-build—Qualified projects. (Expires
April 30, 2008.) The department of transportation may use
the design-build procedure for public works projects over ten
million dollars where:
(1) The construction activities are highly specialized and
a design-build approach is critical in developing the construction methodology; or
(2) The projects selected provide opportunity for greater
innovation and efficiencies between the designer and the
builder; or
(3) Significant savings in project delivery time would be
realized.
This section expires April 30, 2008. [2001 c 226 § 3.]
47.20.785
47.22.020
Chapter 47.24
Lewis and Clark Highway.
47.22.010 East Pacific highway. There is hereby established the east Pacific highway which shall be composed of
the following existing highway routes: Beginning on state
route number 5 at or near Centralia; thence by way of state
route number 5 to its junction with state route number 12 or
by way of state route number 507 between Centralia and
Tenino; thence on state route number 507 to Roy junction
with state route number 7; thence on state route number 7 to
a junction with state route number 512; thence on state route
number 512 to Puyallup; thence on state route numbers 410
and 167 to Sumner, Auburn, Kent and Renton; thence on
state route number 405 to Kirkland; thence on state route
number 405 north to a junction with state route number 522;
thence on state route number 522 to a junction with state
route number 9 northeast of Woodinville; and thence on state
route number 9 to Snohomish, Arlington, Sedro Woolley, and
to a junction with state route number 542 at Deming; thence
westerly on state route 542 to a junction with state route number 9 at Lawrence; thence on state route number 9 via Sumas,
to the Canadian international boundary. [1970 ex.s. c 51 §
175; 1961 c 13 § 47.22.010. Prior: 1951 c 273 § 1.]
47.22.010
47.22.020 Lewis and Clark Highway. There is established the Lewis and Clark Highway, which shall be composed of the following existing routes: State route 193 from
the junction of state route 12 at Clarkston to Wawawai River
Road; state route 12 from Clarkston to Waitsburg; state route
124 from Waitsburg to Pasco (west); state route 12 from
Pasco to Waitsburg via Wallula and Walla Walla (east); state
routes 395 and 82 from state route 12, through the Tri-Cities
region, to the junction at state route 14; state route 14 from
the junction of state routes 395 and 82 to Maryhill; state
routes 14 and 5 from Maryhill to state route 432 through
Longview to state route 4; state route 4 from Longview to the
junction with state route 101 near the vicinity of Johnson's
landing; state route 401 from Naselle junction to Megler;
state route 101 from Megler through Ilwaco and Seaview to
the junction with state route 4; state route spur/alternate state
route 101; state route loop 100; state route spur 100; and state
route 103. [1999 c 57 § 1; 1970 ex.s. c 51 § 176; 1967 ex.s. c
145 § 13; 1961 c 13 § 47.22.020. Prior: 1955 c 178 § 1.]
47.22.020
Chapter 47.24 RCW
CITY STREETS AS PART OF STATE HIGHWAYS
Chapter 47.24
Findings—Purpose—2001 c 226: See note following RCW
47.20.780.
Sections
47.20.900 Severability—1975 1st ex.s. c 272. If any
provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act, or the
application of the provision to other persons or circumstances
is not affected. [1975 1st ex.s. c 272 § 6.]
47.24.020
47.24.030
47.24.040
47.20.900
Chapter 47.22
Chapter 47.22 RCW
COMBINATION HIGHWAY ROUTES
Sections
47.22.010
(2004 Ed.)
East Pacific highway.
47.24.010
47.24.050
Designation—Construction, maintenance—Return to city or
town.
Jurisdiction, control.
Acquisition of rights of way—Condemnation proceedings.
Street fund—Expenditures on streets forming part of state
highway.
Aid on streets by state or county—Payment.
City streets
parkways, boulevards, generally: Title 35 RCW.
sidewalks, etc.: Chapters 35.68 through 35.79 RCW.
Design standards committee for city streets: Chapter 35.78 RCW.
Off-street parking
cities: Chapter 35.86 RCW.
towns: RCW 35.27.550 through 35.27.590.
Platted streets as public highways: RCW 58.08.035, 58.08.050.
[Title 47 RCW—page 97]
47.24.010
Title 47 RCW: Public Highways and Transportation
Speed limits in cities: RCW 46.61.415, 46.61.430, 46.61.440.
Viaducts, bridges, elevated roadways, tunnels, etc., in cities: Chapter 35.85
RCW.
47.24.010
47.24.010 Designation—Construction, maintenance—Return to city or town. The transportation commission shall determine what streets, together with bridges
thereon and wharves necessary for use for ferriage of motor
vehicle traffic in connection with such streets, if any, in any
incorporated cities and towns shall form a part of the route of
state highways and between the first and fifteenth days of
July of any year the department of transportation shall identify by brief description, the streets, together with the bridges
thereon and wharves, if any, in such city or town which are
designated as forming a part of the route of any state highway; and all such streets, including curbs and gutters and
street intersections and such bridges and wharves, shall thereafter be a part of the state highway system and as such shall
be constructed and maintained by the department of transportation from any state funds available therefor: PROVIDED,
That the responsibility for the construction and maintenance
of any such street together with its appurtenances may be
returned to a city or a town upon certification by the department of transportation to the clerk of any city or town that
such street, or portion thereof, is no longer required as a part
of the state highway system: PROVIDED FURTHER, That
any such certification that a street, or portion thereof, is no
longer required as a part of the state highway system shall be
made between the first and fifteenth of July following the
determination by the department that such street or portion
thereof is no longer required as a part of the state highway
system, but this shall not prevent the department and any city
or town from entering into an agreement that a city or town
will accept responsibility for such a street or portion thereof
at some time other than between the first and fifteenth of July
of any year. [1998 c 245 § 97; 1979 ex.s. c 86 § 2; 1977 ex.s.
c 151 § 57; 1973 c 95 § 3; 1961 c 13 § 47.24.010. Prior: 1959
c 160 § 1; 1957 c 83 § 2; 1955 c 179 § 2; 1949 c 220 § 5, part;
1945 c 250 § 1, part; 1943 c 82 § 10, part; 1937 c 187 § 61,
part; Rem. Supp. 1949 § 6450-61, part.]
Severability—1979 ex.s. c 86: See note following RCW 13.24.040.
47.24.020
47.24.020 Jurisdiction, control. The jurisdiction, control, and duty of the state and city or town with respect to such
streets is as follows:
(1) The department has no authority to change or establish any grade of any such street without approval of the governing body of such city or town, except with respect to limited access facilities established by the commission;
(2) The city or town shall exercise full responsibility for
and control over any such street beyond the curbs and if no
curb is installed, beyond that portion of the highway used for
highway purposes. However, within incorporated cities and
towns the title to a state limited access highway vests in the
state, and, notwithstanding any other provision of this section, the department shall exercise full jurisdiction, responsibility, and control to and over such facility as provided in
chapter 47.52 RCW;
(3) The department has authority to prohibit the suspension of signs, banners, or decorations above the portion of
such street between the curbs or portion used for highway
[Title 47 RCW—page 98]
purposes up to a vertical height of twenty feet above the surface of the roadway;
(4) The city or town shall at its own expense maintain all
underground facilities in such streets, and has the right to
construct such additional underground facilities as may be
necessary in such streets. However, pavement trenching and
restoration performed as part of installation of such facilities
must meet or exceed requirements established by the department;
(5) The city or town has the right to grant the privilege to
open the surface of any such street, but all damage occasioned thereby shall promptly be repaired either by the city or
town itself or at its direction. Pavement trenching and restoration performed under a privilege granted by the city under
this subsection must meet or exceed requirements established
by the department;
(6) The city or town at its own expense shall provide
street illumination and shall clean all such streets, including
storm sewer inlets and catch basins, and remove all snow,
except that the state shall when necessary plow the snow on
the roadway. In cities and towns having a population of
twenty-two thousand five hundred or less according to the
latest determination of population by the office of financial
management, the state, when necessary for public safety,
shall assume, at its expense, responsibility for the stability of
the slopes of cuts and fills and the embankments within the
right of way to protect the roadway itself. When the population of a city or town first exceeds twenty-two thousand five
hundred according to the determination of population by the
office of financial management, the city or town shall have
three years from the date of the determination to plan for
additional staffing, budgetary, and equipment requirements
before being required to assume the responsibilities under
this subsection. The state shall install, maintain, and operate
all illuminating facilities on any limited access facility,
together with its interchanges, located within the corporate
limits of any city or town, and shall assume and pay the costs
of all such installation, maintenance, and operation incurred
after November 1, 1954;
(7) The department has the right to use all storm sewers
on such highways without cost; and if new storm sewer facilities are necessary in construction of new streets by the
department, the cost of the facilities shall be borne by the
state and/or city as may be mutually agreed upon between the
department and the governing body of the city or town;
(8) Cities and towns have exclusive right to grant franchises not in conflict with state laws and rules, over, beneath,
and upon such streets, but the department is authorized to
enforce in an action brought in the name of the state any condition of any franchise which a city or town has granted on
such street. No franchise for transportation of passengers in
motor vehicles may be granted on such streets without the
approval of the department, but the department shall not
refuse to approve such franchise unless another street conveniently located and of strength of construction to sustain
travel of such vehicles is accessible;
(9) Every franchise or permit granted any person by a
city or town for use of any portion of such street by a public
utility must require the grantee or permittee to restore, repair,
and replace any portion of the street damaged or injured by it
(2004 Ed.)
City Streets as Part of State Highways
to conditions that meet or exceed requirements established by
the department;
(10) The city or town has the right to issue overload or
overwidth permits for vehicles to operate on such streets or
roads subject to regulations printed and distributed to the cities and towns by the department;
(11) Cities and towns shall regulate and enforce all traffic and parking restrictions on such streets, but all regulations
adopted by a city or town relating to speed, parking, and traffic control devices on such streets not identical to state law
relating thereto are subject to the approval of the department
before becoming effective. All regulations pertaining to
speed, parking, and traffic control devices relating to such
streets heretofore adopted by a city or town not identical with
state laws shall become null and void unless approved by the
department heretofore or within one year after March 21,
1963;
(12) The department shall erect, control, and maintain at
state expense all route markers and directional signs, except
street signs, on such streets;
(13) The department shall install, operate, maintain, and
control at state expense all traffic control signals, signs, and
traffic control devices for the purpose of regulating both
pedestrian and motor vehicular traffic on, entering upon, or
leaving state highways in cities and towns having a population of twenty-two thousand five hundred or less according to
the latest determination of population by the office of financial management. Such cities and towns may submit to the
department a plan for traffic control signals, signs, and traffic
control devices desired by them, indicating the location,
nature of installation, or type thereof, or a proposed amendment to such an existing plan or installation, and the department shall consult with the cities or towns concerning the
plan before installing such signals, signs, or devices. Cities
and towns having a population in excess of twenty-two thousand five hundred according to the latest determination of
population by the office of financial management shall
install, maintain, operate, and control such signals, signs, and
devices at their own expense, subject to approval of the
department for the installation and type only. When the population of a city or town first exceeds twenty-two thousand
five hundred according to the determination of population by
the office of financial management, the city or town shall
have three years from the date of the determination to plan for
additional staffing, budgetary, and equipment requirements
before being required to assume the responsibilities under
this subsection. For the purpose of this subsection, striping,
lane marking, and channelization are considered traffic control devices;
(14) All revenue from parking meters placed on such
streets belongs to the city or town;
(15) Rights of way for such streets shall be acquired by
either the city or town or by the state as shall be mutually
agreed upon. Costs of acquiring rights of way may be at the
sole expense of the state or at the expense of the city or town
or at the expense of the state and the city or town as may be
mutually agreed upon. Title to all such rights of way so
acquired shall vest in the city or town: PROVIDED, That no
vacation, sale, rental, or any other nontransportation use of
any unused portion of any such street may be made by the
city or town without the prior written approval of the depart(2004 Ed.)
47.24.050
ment; and all revenue derived from sale, vacation, rental, or
any nontransportation use of such rights of way shall be
shared by the city or town and the state in the same proportion
as the purchase costs were shared;
(16) If any city or town fails to perform any of its obligations as set forth in this section or in any cooperative agreement entered into with the department for the maintenance of
a city or town street forming part of the route of a state highway, the department may notify the mayor of the city or town
to perform the necessary maintenance within thirty days. If
the city or town within the thirty days fails to perform the
maintenance or fails to authorize the department to perform
the maintenance as provided by RCW 47.24.050, the department may perform the maintenance, the cost of which is to be
deducted from any sums in the motor vehicle fund credited or
to be credited to the city or town. [2001 c 201 § 8; 1993 c 126
§ 1; 1991 c 342 § 52; 1987 c 68 § 1; 1984 c 7 § 150; 1977
ex.s. c 78 § 7; 1967 c 115 § 1; 1963 c 150 § 1; 1961 c 13 §
47.24.020. Prior: 1957 c 83 § 3; 1955 c 179 § 3; 1953 c 193
§ 1; 1949 c 220 § 5, part; 1945 c 250 § 1, part; 1943 c 82 § 10,
part; 1937 c 187 § 61, part; Rem. Supp. 1949 § 6450-61,
part.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
Severability—1984 c 7: See note following RCW 47.01.141.
47.24.030
47.24.030 Acquisition of rights of way—Condemnation proceedings. The department is authorized to acquire
rights of way, by purchase, gift, or condemnation for any
such streets, highways, bridges, and wharves. Any such condemnation proceedings shall be exercised in the manner provided by law for condemnation proceedings to acquire lands
required for state highways. [1984 c 7 § 151; 1961 c 13 §
47.24.030. Prior: 1949 c 220 § 5, part; 1945 c 250 § 1, part;
1943 c 82 § 10, part; 1937 c 187 § 61, part; Rem. Supp. 1949
§ 6450-61, part.]
Severability—1984 c 7: See note following RCW 47.01.141.
Right of way donations: Chapter 47.14 RCW.
47.24.040
47.24.040 Street fund—Expenditures on streets
forming part of state highway. All funds accruing to the
credit of incorporated cities and towns in the motor vehicle
fund shall be paid monthly to such incorporated cities and
towns and shall, by the respective cities and towns, be placed
in a fund to be designated as "city street fund" and disbursed
as authorized and directed by the legislative authority of the
city or town, as agents of the state, for salaries and wages,
material, supplies, equipment, purchase or condemnation of
right of way, engineering or any other proper highway or
street purpose in connection with the construction, alteration,
repair, improvement or maintenance of any city street or
bridge, or viaduct or underpassage along, upon or across such
streets. Such expenditure may be made either independently
or in conjunction with any federal, state or any county funds.
[1961 c 13 § 47.24.040. Prior: 1949 c 220 § 4; 1947 c 96 § 1;
1943 c 82 § 9; 1939 c 181 § 8; 1937 c 187 § 60; Rem. Supp.
1949 § 6450-60.]
47.24.050
47.24.050 Aid on streets by state or county—Payment. If a city or town, whether or not any of its streets are
designated as forming a part of a state highway, is unable to
[Title 47 RCW—page 99]
Chapter 47.26
Title 47 RCW: Public Highways and Transportation
construct, repair, or maintain its streets for good cause, or if it
is in need of engineering assistance to construct, repair, or
maintain any of its streets, it may authorize the department to
perform such construction, repair, or maintenance, or it may
secure necessary engineering assistance from the department,
to the extent of the funds credited or to be credited in the
motor vehicle fund for payment to the city or town. Any sums
due from a city or town for such purposes shall be paid on
vouchers approved and submitted by the department from
moneys credited to the city or town in the motor vehicle fund,
and the amount of the payments shall be deducted from funds
which would otherwise be paid to the city or town from the
motor vehicle fund. The department may in certain special
cases, in its discretion, enter into an agreement with the governing officials of the city or town for the performance of
such work or services, the terms of which shall provide for
reimbursement of the motor vehicle fund for the benefit of
the state's share of the fund by the city or town of the cost
thereof from any funds of the city or town on hand and legally
available for the work or services. The city or town may, by
resolution, authorize the legislative authority of the county in
which it is located, to perform any such construction, repair,
or maintenance, and the work shall be paid for by the city or
town at the actual cost thereof as provided for payment for
work performed on city streets, and any payment received
therefor by a county shall be deposited in the county road
fund to be expended under the same provisions as are
imposed upon the funds used to perform the construction,
repair, or maintenance. [1984 c 7 § 152; 1961 c 13 §
47.24.050. Prior: 1951 c 54 § 1; 1949 c 220 § 6; 1943 c 82 §
11; 1937 c 187 § 63; Rem. Supp. 1949 § 6450-63.]
Severability—1984 c 7: See note following RCW 47.01.141.
Chapter 47.26
Chapter 47.26 RCW
DEVELOPMENT IN URBAN AREAS—
URBAN ARTERIALS
Sections
47.26.010
47.26.020
47.26.022
47.26.028
47.26.030
47.26.040
47.26.044
47.26.050
47.26.080
47.26.084
47.26.086
47.26.090
47.26.100
47.26.110
47.26.115
47.26.121
47.26.130
47.26.140
47.26.150
47.26.160
47.26.164
47.26.165
47.26.167
47.26.170
Long-range arterial construction planning—Arterial inventory
data.
Qualifications for administering and supervising projects—
Rules.
Geographical diversity—Rules.
Counties—Perpetual advanced six-year plans for coordinated
transportation program, expenditures—Nonmotorized transportation—Railroad right-of-way.
Cities—Perpetual advanced six-year plans for coordinated
transportation program, expenditures—Nonmotorized transportation—Railroad right-of-way.
Payment of funds—Rules—Limitations.
Matching funds requirements.
Land use implications.
Bicycle routes—Legislative declaration.
Bicycle routes—Use of board funds.
Advance right-of-way acquisition—Definition.
Advance right-of-way acquisition—Revolving fund.
Advance right-of-way acquisition—Management of properties
and funds.
47.26.185
47.26.190
47.26.200
47.26.210
47.26.260
47.26.270
47.26.282
47.26.300
47.26.305
47.26.320
47.26.325
47.26.330
BOND ISSUE—STATE HIGHWAYS IN URBAN AREAS
47.26.400
Issuance and sale of general obligation bonds—Authorized—
Amount—Declaration of purpose.
Bonds—Term—Terms and conditions—Signatures—Registration—Where payable—Negotiable instruments.
Bonds—Denominations—Manner and terms of sale—Legal
investment for state funds.
Bonds—Bond proceeds—Deposit and use.
Bonds—Statement describing nature of obligation—Pledge of
excise taxes.
Bonds—Designation of funds to repay bonds and interest.
Bonds—Repayment procedure—Bond retirement fund.
Bonds—Sums in excess of retirement requirements—Use.
47.26.401
47.26.402
47.26.403
47.26.404
47.26.405
47.26.406
47.26.407
BOND ISSUE—COUNTY AND CITY ARTERIALS
IN URBAN AREAS
47.26.420
47.26.421
47.26.422
47.26.423
47.26.424
47.26.425
47.26.4252
47.26.4254
47.26.4255
Declaration of intent.
Motor vehicle fuel tax—Tax imposed—Rate—Distribution of
proceeds.
Motor vehicle fuel tax—Tax required of nondistributors—
Duties—Procedure—Distribution of proceeds—Penalties.
Special fuel tax—Tax imposed—Rate.
Special fuel tax—Disposition of funds.
"Urban area" defined.
"Board" defined.
Regional grouping for purpose of apportioning urban state
highway funds.
Urban arterial trust account—Withholding of funds for noncompliance.
Transportation improvement account—Certification of funding.
Transportation improvement account projects—Intent—Limitations.
"Arterial" defined.
"City" defined.
"Urban arterial" defined.
Small city program.
Transportation improvement board—Membership—Chair—
Expenses.
Transportation improvement board—Travel expenses.
Transportation improvement board—Executive director,
staff—Finances.
Transportation improvement board—Meetings.
Transportation improvement board—Powers and duties.
City hardship assistance program—Implementation.
Coordination of long-range needs studies.
Jurisdictional transfers.
[Title 47 RCW—page 100]
47.26.426
47.26.427
47.26.440
47.26.450
47.26.460
Issuance and sale of general obligation bonds—Authorized—
Amount—Declaration of purpose.
Bonds—Term—Terms and conditions—Signatures—Registration—Where payable—Negotiable instruments.
Bonds—Denominations—Manner and terms of sale—Legal
investment for state funds.
Bonds—Bond proceeds—Deposit and use.
Bonds—Statement describing nature of obligation—Pledge of
excise taxes.
Bonds—Designation of funds to repay bonds and interest.
Bonds—Series II bonds, 1979 reenactment—Designation of
funds to repay bonds and interest.
Bonds—Series III bonds—Designation of funds to repay
bonds and interest.
Bonds—Series II bonds, 1979 reenactment—Charge against
fuel tax revenues.
Bonds—Repayment procedure—Bond retirement account.
Bonds—Sums in excess of retirement requirements—Use.
Budget for expenditures from funds administered by board—
Estimate of revenues.
Allocation of funds—Value engineering studies—Rules.
Increase in funds allocated to a project—Rules—Factors.
BOND ISSUE—TRANSPORTATION PROJECTS IN URBAN AREAS
47.26.500
47.26.501
47.26.502
47.26.503
47.26.504
47.26.505
47.26.506
47.26.507
47.26.900
47.26.910
47.26.930
Issuance authorized.
Term—Signatures—Registration—Negotiable instruments.
Denominations—Manner and terms of sale—State investment.
Use of proceeds.
Statement of obligation—Pledge of excise taxes.
Funds for repayment.
Repayment procedure—Bond retirement account.
Sums in excess of retirement requirements—Use.
Severability—1967 ex.s. c 83.
Effective dates—1967 ex.s. c 83.
Construction—1969 ex.s. c 171.
Bicycle transportation management program: RCW 47.04.190.
Public-private transportation initiatives—1994 act: RCW 47.10.834
through 47.10.839.
47.26.010
47.26.010 Declaration of intent. Due to unprecedented
industrial development and population increases, the state of
Washington is confronted with emergency needs for
(2004 Ed.)
Development in Urban Areas—Urban Arterials
improvement of state highways, county roads, and city streets
in urban areas. It is the intent of the legislature to provide sufficient new highway revenues to alleviate and prevent intolerable traffic congestion in urban areas without the disruption
of the long range statewide highway program essential to the
economic well-being of the people of this state. [1967 ex.s. c
83 § 1.]
Reviser's note: Throughout chapter 47.26 RCW the term "this 1967
amendatory act" has been translated to "this chapter." This 1967 amendatory
act [1967 ex.s. c 83] consists of chapter 47.26 RCW and RCW 35.77.010,
36.81.121, 46.16.040, 46.16.070, 46.16.111, 46.16.121, 46.16.125,
46.68.100, 46.68.150, 82.36.020, 82.36.100, 82.37.030, 82.37.190,
82.40.020, 82.40.290, and the repeal of RCW 46.16.072, 46.16.075,
46.16.110, and 46.16.120.
47.26.020
47.26.020 Motor vehicle fuel tax—Tax imposed—
Rate—Distribution of proceeds. See RCW 82.36.020.
47.26.022
47.26.022 Motor vehicle fuel tax—Tax required of
nondistributors—Duties—Procedure—Distribution of
proceeds—Penalties. See RCW 82.36.100.
47.26.028
47.26.028 Special fuel tax—Tax imposed—Rate.
See RCW 82.38.030.
47.26.030
47.26.030 Special fuel tax—Disposition of funds.
See RCW 82.38.290.
47.26.040
47.26.040 "Urban area" defined. The term "urban
area" as used in this chapter means every area of this state
designated as an urban area by the department in cooperation
with the board and regional transportation planning organizations. [1994 c 179 § 7; 1984 c 7 § 153; 1977 ex.s. c 317 § 12;
1975 1st ex.s. c 253 § 1; 1967 ex.s. c 83 § 10.]
Severability—1984 c 7: See note following RCW 47.01.141.
Effective dates—Severability—1977 ex.s. c 317: See notes following
RCW 82.36.010.
47.26.044
47.26.044 "Board" defined. The term "board" as used
in this chapter means the transportation improvement board.
[1994 c 179 § 6.]
47.26.050
47.26.050 Regional grouping for purpose of apportioning urban state highway funds. For the purpose of
apportioning urban state highway funds, the urban areas of
the state are grouped within five regions of the state as follows:
(1) Puget Sound region shall include those urban areas
within the counties of King, Pierce and Snohomish.
(2) Northwest region shall include those urban areas
within the counties of Clallam, Jefferson, Island, Kitsap, San
Juan, Skagit and Whatcom.
(3) Northeast region shall include those urban areas
within the counties of Adams, Chelan, Douglas, Ferry, Grant,
Lincoln, Okanogan, Pend Oreille, Spokane, Stevens and
Whitman.
(4) Southeast region shall include those urban areas
within the counties of Asotin, Benton, Columbia, Franklin,
Garfield, Kittitas, Klickitat, Walla Walla and Yakima.
(5) Southwest region shall include those urban areas
within the counties of Clark, Cowlitz, Grays Harbor, Lewis,
(2004 Ed.)
47.26.086
Mason, Pacific, Skamania, Thurston and Wahkiakum. [1967
ex.s. c 83 § 11.]
47.26.080
47.26.080 Urban arterial trust account—Withholding of funds for noncompliance. There is hereby created in
the motor vehicle fund the urban arterial trust account. The
intent of the urban arterial trust account program is to
improve the arterial street system of the state by improving
mobility and safety while supporting an environment essential to the quality of life of the citizens of the state of Washington. The city hardship assistance program, as provided in
RCW 47.26.164, and the small city program, as provided for
in RCW 47.26.115, are implemented within the urban arterial
trust account.
The board shall not allocate funds, nor make payments of
the funds under RCW 47.26.260, to any county, city, or town
identified by the governor under RCW 36.70A.340. [1999 c
94 § 16; 1994 c 179 § 8; 1991 sp.s. c 32 § 32; 1988 c 167 §
13; 1981 c 315 § 2; 1979 c 5 § 1; 1977 ex.s. c 317 § 22; 1967
ex.s. c 83 § 14.]
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
Section headings not law—1991 sp.s. c 32: See RCW 36.70A.902.
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
Effective date—1981 c 315: "This act is necessary for the immediate
preservation of the public peace, health, and safety, the support of the state
government and its existing public institutions, and shall take effect July 1,
1981." [1981 c 315 § 14.]
Effective dates—Severability—1977 ex.s. c 317: See notes following
RCW 82.36.010.
47.26.084
47.26.084 Transportation improvement account—
Certification of funding. The transportation improvement
account is hereby created in the motor vehicle fund. The
intent of the program is to improve mobility of people and
goods in Washington state by supporting economic development and environmentally responsive solutions to our statewide transportation system needs.
Within one year after board approval of an application
for funding, a county, city, or transportation benefit district
shall provide written certification to the board of the pledged
local and/or private funding. Funds allocated to an applicant
that does not certify its funding within one year after approval
may be reallocated by the board. [1999 c 94 § 17; 1994 c 179
§ 10; 1988 c 167 § 2.]
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
47.26.086
47.26.086 Transportation improvement account
projects—Intent—Limitations. Transportation improvement account projects selected for funding programs after fiscal year 1995 are governed by the requirements of this section.
The board shall allocate funds from the account by June
30th of each year for the ensuing fiscal year to urban counties, cities with a population of five thousand and over, and to
transportation benefit districts. Projects may include, but are
not limited to, multi-agency projects and arterial improve[Title 47 RCW—page 101]
47.26.090
Title 47 RCW: Public Highways and Transportation
ment projects in fast-growing areas. The board shall endeavor
to provide geographical diversity in selecting improvement
projects to be funded from the account.
The intent of the program is to improve mobility of people and goods in Washington state by supporting economic
development and environmentally responsive solutions to
our statewide transportation system needs.
To be eligible to receive these funds, a project must be
consistent with the Growth Management Act, the Clean Air
Act including conformity, and the Commute Trip Reduction
Law and consideration must have been given to the project's
relationship, both actual and potential, with the statewide rail
passenger program and rapid mass transit. Projects must be
consistent with any adopted high capacity transportation
plan, must consider existing or reasonably foreseeable congestion levels attributable to economic development or
growth and all modes of transportation and safety, and must
be partially funded by local government or private contributions, or a combination of such contributions. Priority consideration shall be given to those projects with the greatest percentage of local or private contribution, or both.
Within one year after board approval of an application
for funding, the lead agency shall provide written certification to the board of the pledged local and private funding for
the phase of the project approved. Funds allocated to an
applicant that does not certify its funding within one year
after approval may be reallocated by the board. [1994 c 179
§ 11.]
47.26.090
47.26.090 "Arterial" defined. The term "arterial" as
used in this chapter means any state highway, county road, or
city street, in an urban area, that is functionally classified as a
principal arterial, minor arterial, or collector street by the
department in cooperation with the board, regional transportation planning organizations, cities, and counties. The board
shall develop criteria and procedures for designating arterials
in the incorporated cities and towns lying outside urban areas.
[1994 c 179 § 12; 1988 c 167 § 14. Prior: 1967 ex.s. c 83 §
15.]
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
47.26.100
47.26.100 "City" defined. The term "city" as used in
*this chapter shall include incorporated towns. [1967 ex.s. c
83 § 16.]
*Reviser's note: The term "this chapter" has been substituted for "this
1967 amendatory act." See note following RCW 47.26.010 for codification
of "this 1967 amendatory act" [1967 ex.s. c 83].
47.26.110
47.26.110 "Urban arterial" defined. The term "urban
arterial" as used in *this chapter means an arterial within an
urban area. [1967 ex.s. c 83 § 17.]
*Reviser's note: The term "this chapter" has been substituted for "this
1967 amendatory act." See note following RCW 47.26.010 for codification
of "this 1967 amendatory act." [1967 ex.s. c 83.]
47.26.115
47.26.115 Small city program. The intent of the small
city program is to preserve and improve the roadway system
consistent with local needs of incorporated cities and towns
with a population of less than five thousand. The board shall
adopt rules and procedures to govern the allocation of funds
[Title 47 RCW—page 102]
distributed to the small city program. [1999 c 94 § 18; 1994
c 179 § 9.]
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
47.26.121
47.26.121 Transportation improvement board—
Membership—Chair—Expenses. (1) There is hereby created a transportation improvement board of twenty-one members, six of whom shall be county members and six of whom
shall be city members. The remaining members shall be: (a)
One representative appointed by the governor who shall be a
state employee with responsibility for transportation policy,
planning, or funding; (b) two representatives from the department of transportation; (c) two representatives of public transit systems; (d) a private sector representative; (e) a member
representing the ports; (f) a member representing nonmotorized transportation; and (g) a member representing special
needs transportation.
(2) Of the county members of the board, one shall be a
county engineer or public works director; one shall be the
executive director of the county road administration board;
one shall be a county planning director or planning manager;
one shall be a county executive, councilmember, or commissioner from a county with a population of one hundred
twenty-five thousand or more; one shall be a county executive, councilmember, or commissioner of a county who
serves on the board of a public transit system; and one shall
be a county executive, councilmember, or commissioner
from a county with a population of less than one hundred
twenty-five thousand. All county members of the board,
except the executive director of the county road administration board, shall be appointed. Not more than one county
member of the board shall be from any one county. No more
than two of the three county-elected officials may represent
counties located in either the eastern or western part of the
state as divided north and south by the summit of the Cascade
mountains.
(3) Of the city members of the board one shall be a chief
city engineer, public works director, or other city employee
with responsibility for public works activities, of a city with a
population of twenty thousand or more; one shall be a chief
city engineer, public works director, or other city employee
with responsibility for public works activities, of a city of less
than twenty thousand population; one shall be a city planning
director or planning manager; one shall be a mayor, commissioner, or city councilmember of a city with a population of
twenty thousand or more; one shall be a mayor, commissioner, or city councilmember of a city who serves on the
board of a public transit system; and one shall be a mayor,
commissioner, or councilmember of a city of less than twenty
thousand population. All of the city members shall be
appointed. Not more than one city member of the board shall
be from any one city. No more than two of the three cityelected officials may represent cities located in either the
eastern or western part of the state as divided north and south
by the summit of the Cascade mountains.
(4) Of the transit members, at least one shall be a general
manager, executive director, or transit director of a public
transit system in an urban area with a population over two
hundred thousand and at least one representative from a rural
(2004 Ed.)
Development in Urban Areas—Urban Arterials
or small urban transit system in an area with a population less
than two hundred thousand.
(5) The private sector member shall be a citizen with
business, management, and transportation related experience
and shall be active in a business community-based transportation organization.
(6) The port member shall be a commissioner or senior
staff person of a public port.
(7) The nonmotorized transportation member shall be a
citizen with a demonstrated interest and involvement with a
nonmotorized transportation group.
(8) The specialized transportation member shall be a citizen with a demonstrated interest and involvement with a
statewide specialized needs transportation group.
(9) Appointments of county, city, Washington department of transportation, transit, port, nonmotorized transportation, special needs transportation, and private sector representatives shall be made by the secretary of the department of
transportation. Appointees shall be chosen from a list of two
persons for each position nominated by the Washington state
association of counties for county members, the association
of Washington cities for city members, the Washington state
transit association for the transit members, and the Washington public ports association for the port member. The private
sector, nonmotorized transportation, and special needs members shall be sought through classified advertisements in
selected newspapers collectively serving all urban areas of
the state, and other appropriate means. Persons applying for
the private sector, nonmotorized transportation, or special
needs transportation member position must provide a letter of
interest and a resume to the secretary of the department of
transportation. In the case of a vacancy, the appointment shall
be only for the remainder of the unexpired term in which the
vacancy has occurred. A vacancy shall be deemed to have
occurred on the board when any member elected to public
office completes that term of office or is removed therefrom
for any reason or when any member employed by a political
subdivision terminates such employment for whatsoever reason or when a private sector, nonmotorized transportation, or
special needs transportation member resigns or is unable or
unwilling to serve.
(10) Appointments shall be for terms of four years.
Terms of all appointed members shall expire on June 30th of
even-numbered years. The initial term of appointed members
may be for less than four years. No appointed member may
serve more than two consecutive four-year terms.
(11) The board shall elect a chair from among its members for a two-year term.
(12) Expenses of the board shall be paid in accordance
with RCW 47.26.140.
(13) For purposes of this section, "public transit system"
means a city-owned transit system, county transportation
authority, metropolitan municipal corporation, public transportation benefit area, or regional transit authority. [1996 c
49 § 1; 1995 c 269 § 2603; 1994 c 179 § 13; 1993 c 172 § 1.
Prior: 1991 c 363 § 124; 1991 c 308 § 1; 1990 c 266 § 4; 1988
c 167 § 1.]
47.26.150
Effective date—1993 c 172: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1,
1993." [1993 c 172 § 2.]
Purpose—Captions not law—1991 c 363: See notes following RCW
2.32.180.
Effective date—1991 c 308: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1,
1991." [1991 c 308 § 2.]
References to urban arterial board—1988 c 167: "References in the
Revised Code of Washington to the urban arterial board shall be construed to
mean the transportation improvement board." [1988 c 167 § 35.]
Savings—1988 c 167: "All rules and all pending business before the
urban arterial board shall be continued and acted upon by the transportation
improvement board. All existing contracts and obligations of the urban arterial board shall remain in full force and shall be performed by the transportation improvement board." [1988 c 167 § 36.]
Severability—1988 c 167: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1988 c 167 § 37.]
47.26.130
47.26.130 Transportation improvement board—
Travel expenses. Members of the transportation improvement board shall receive no compensation for their services
on the board, but shall be reimbursed for travel expenses
incurred while attending meetings of the board or while
engaged on other business of the board when authorized by
the board in accordance with RCW 43.03.050 and 43.03.060
as now existing or hereafter amended. [1988 c 167 § 15;
1975-'76 2nd ex.s. c 34 § 139; 1975 1st ex.s. c 1 § 2; 1969
ex.s. c 171 § 2; 1967 ex.s. c 83 § 19.]
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
Effective date—Severability—1975-'76 2nd ex.s. c 34: See notes following RCW 2.08.115.
47.26.140
47.26.140 Transportation improvement board—
Executive director, staff—Finances. The transportation
improvement board shall appoint an executive director, who
shall serve at its pleasure and whose salary shall be set by the
board, and may employ additional staff as it deems appropriate. All costs associated with staff, together with travel
expenses in accordance with RCW 43.03.050 and 43.03.060,
shall be paid from the urban arterial trust account, public
transportation systems account, and the transportation
improvement account in the motor vehicle fund as determined by the biennial appropriation. [1999 c 94 § 19; 1996 c
49 § 2; 1995 c 269 § 2605; 1994 c 179 § 14; 1988 c 167 § 16;
1977 ex.s. c 151 § 58; 1975-'76 2nd ex.s. c 34 § 140; 1969
ex.s. c 171 § 3; 1967 ex.s. c 83 § 20.]
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
Effective date—1995 c 269: See note following RCW 9.94A.850.
Part headings not law—Severability—1995 c 269: See notes following RCW 13.40.005.
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
Effective date—Severability—1975-'76 2nd ex.s. c 34: See notes following RCW 2.08.115.
Effective date—1995 c 269: See note following RCW 9.94A.850.
47.26.150
Part headings not law—Severability—1995 c 269: See notes following RCW 13.40.005.
(2004 Ed.)
47.26.150 Transportation improvement board—
Meetings. The transportation improvement board shall meet
[Title 47 RCW—page 103]
47.26.160
Title 47 RCW: Public Highways and Transportation
at least once quarterly and upon the call of its chairman and
shall from time to time adopt rules and regulations for its own
government and as may be necessary for it to discharge its
duties and exercise its powers under this chapter. [1988 c 167
§ 17. Prior: 1967 ex.s. c 83 § 21.]
47.17.001 in evaluating petitions and to adopt rules for
implementation of this process. The board shall forward to
the legislative transportation committee by November 15
each year any recommended jurisdictional transfers. [1991 c
342 § 62.]
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
Effective dates—1991 c 342: "(1) Sections 62 and 63 of this act are
necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public institutions,
and shall take effect June 1, 1991.
(2) The remainder of this act shall take effect April 1, 1992." [1991 c
342 § 68.]
47.26.160 Transportation improvement board—
Powers and duties. The transportation improvement board
shall:
(1) Adopt rules necessary to implement the provisions of
chapter 47.66 RCW and this chapter relating to the allocation
of funds;
(2) Adopt reasonably uniform design standards for city
and county arterials. [1995 c 269 § 2607; 1994 c 179 § 15;
1988 c 167 § 18; 1987 c 505 § 51; 1984 c 7 § 155; 1977 ex.s.
c 235 § 17; 1971 ex.s. c 291 § 1; 1967 ex.s. c 83 § 22.]
47.26.160
Effective date—1995 c 269: See note following RCW 9.94A.850.
Part headings not law—Severability—1995 c 269: See notes following RCW 13.40.005.
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
Severability—1984 c 7: See note following RCW 47.01.141.
47.26.164 City hardship assistance program—Implementation. The board shall adopt reasonable rules necessary
to implement the city hardship assistance program as recommended by the road jurisdiction study.
The following criteria shall be used to implement the
program:
(1) Only those cities with a net gain in cost responsibility
due to jurisdictional transfers in chapter 342, Laws of 1991,
as determined by the board, may participate;
(2) Cities with populations of fifteen thousand or less, as
determined by the office of financial management, may participate;
(3) The board shall develop criteria and procedures
under which eligible cities may request funding for rehabilitation projects on city streets acquired under chapter 342,
Laws of 1991; and
(4) The board shall also be authorized to allocate funds
from the city hardship assistance program to cities with a
population under twenty thousand to offset extraordinary
costs associated with the transfer of roadways other than pursuant to chapter 342, Laws of 1991, that occur after January
1, 1991. [1999 c 94 § 20; 1991 c 342 § 60.]
47.26.164
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
Effective dates—1991 c 342: See note following RCW 47.26.167.
47.26.165 Coordination of long-range needs studies.
See RCW 47.01.240.
47.26.165
47.26.170
47.26.170 Long-range arterial construction planning—Arterial inventory data. Each county having within
its boundaries an urban area and cities and towns shall prepare and submit to the transportation improvement board
arterial inventory data required to determine the long-range
arterial construction needs. The counties, cities, and towns
shall revise the arterial inventory data every four years to
show the current arterial construction needs through the
advanced planning period, and as revised shall submit them
to the transportation improvement board during the first week
of January every four years beginning in 1996. The inventory
data shall be prepared pursuant to guidelines established by
the transportation improvement board. As information is
updated, it shall be made available to the commission and the
legislative transportation committee. [1994 c 179 § 16; 1988
c 167 § 19; 1984 c 7 § 156; 1971 ex.s. c 291 § 2; 1967 ex.s. c
83 § 23.]
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
Severability—1984 c 7: See note following RCW 47.01.141.
47.26.185
47.26.185 Qualifications for administering and
supervising projects—Rules. The transportation improvement board may adopt rules establishing qualifications for
cities and counties administering and supervising the design
and construction of projects financed in part from funds
administered by the board. The rules establishing qualification shall take into account the resources and population of
the city or county, its permanent engineering staff, its design
and construction supervision experience, and other factors
the board deems appropriate. Any city or county failing to
meet the qualifications established by the board for administering and supervising a project shall contract with a qualified
city or county or the department for the administration and
supervision of the design and construction of any approved
project as a condition for receiving funds for the project.
[1994 c 179 § 17; 1988 c 167 § 21; 1984 c 7 § 157; 1975 1st
ex.s. c 253 § 4.]
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
Severability—1984 c 7: See note following RCW 47.01.141.
47.26.167 Jurisdictional transfers. The legislature
recognizes the need for a multijurisdictional body to review
future requests for jurisdictional transfers. The board is
hereby directed, beginning September 1, 1991, to receive
petitions from cities, counties, or the state requesting any
addition or deletion from the state highway system. The
board is required to utilize the criteria established in RCW
47.26.167
[Title 47 RCW—page 104]
47.26.190
47.26.190 Geographical diversity—Rules. The board
shall adopt rules that provide geographical diversity in selecting improvement projects to be funded from the urban arterial trust account and *small city account funds. [1994 c 179
§ 18; 1988 c 167 § 22; 1987 c 360 § 1; 1981 c 315 § 4; 1979
c 151 § 162; 1977 ex.s. c 317 § 14; 1973 1st ex.s. c 126 § 2;
(2004 Ed.)
Development in Urban Areas—Urban Arterials
1971 ex.s. c 291 § 3; 1969 ex.s. c 171 § 4; 1967 ex.s. c 83 §
25.]
*Reviser's note: The "small city account" was renamed the "small city
program" pursuant to 1999 c 94 § 18.
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
Effective date—1981 c 315: See note following RCW 47.26.080.
Effective dates—Severability—1977 ex.s. c 317: See notes following
RCW 82.36.010.
Population determinations, office of financial management: Chapter 43.62
RCW.
47.26.200
47.26.200 Counties—Perpetual advanced six-year
plans for coordinated transportation program, expenditures—Nonmotorized transportation—Railroad right-ofway. See RCW 36.81.121.
47.26.210
47.26.210 Cities—Perpetual advanced six-year plans
for coordinated transportation program, expenditures—
Nonmotorized transportation—Railroad right-of-way.
See RCW 35.77.010.
47.26.260
47.26.260 Payment of funds—Rules—Limitations.
The transportation improvement board shall adopt rules providing for the approval of payments of funds in the accounts
to a county, city, town, or transportation benefit district for
costs of predesign, design, engineering, and costs of construction of an approved project from time to time as work
progresses. These payments shall at no time exceed the
account share of the costs incurred to the date of the voucher
covering such payment. [1994 c 179 § 19; 1988 c 167 § 26;
1973 1st ex.s. c 126 § 1; 1967 ex.s. c 83 § 32.]
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
47.26.270
47.26.270 Matching funds requirements. Counties,
cities, towns, and transportation benefit districts receiving
funds from the board shall provide such matching funds as
established by rules adopted by the transportation improvement board. When determining matching requirements, the
board shall consider (1) financial resources available to counties and cities to meet arterial needs, (2) the amounts and percentages of funds available for road or street construction traditionally expended by counties and cities on arterials, (3) in
the case of counties, the relative needs of arterials lying outside urban areas, and (4) the requirements necessary to avoid
diversion of funds traditionally expended for arterial construction to other street or road purposes or to nonhighway
purposes. [1994 c 179 § 20; 1988 c 167 § 27; 1983 1st ex.s.
c 49 § 22; 1977 ex.s. c 317 § 16; 1967 ex.s. c 83 § 33.]
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
Severability—Effective date—1983 1st ex.s. c 49: See RCW
36.79.900 and 36.79.901.
Effective dates—Severability—1977 ex.s. c 317: See notes following
RCW 82.36.010.
47.26.282
47.26.282 Land use implications. In any project
funded by the transportation improvement board, except for
projects in cities having a population of less than five thousand persons, and in addition to any other items required to be
(2004 Ed.)
47.26.325
considered by statute, the board also shall consider the land
use implications of the project, such as whether the programs
and projects:
(1) Support development in and revitalization of existing
downtowns;
(2) Implement local comprehensive plans for rural and
urban residential and nonresidential densities;
(3) Have land use planning and regulations encouraging
compact development for rural and urban residential and
nonresidential densities; and
(4) Promote the use of multimodal transportation. [2002
c 189 § 5.]
47.26.300
47.26.300 Bicycle routes—Legislative declaration.
The state of Washington is confronted with emergency shortages of energy sources utilized for the transportation of its
citizens and must seek alternative methods of providing public mobility.
Bicycles are suitable for many transportation purposes,
and are pollution-free in addition to using a minimal amount
of resources and energy. However, the increased use of bicycles for both transportation and recreation has led to an
increase in both fatal and nonfatal injuries to bicyclists.
The legislature therefore finds that the establishment,
improvement, and upgrading of bicycle routes is necessary to
promote public mobility, conserve energy, and provide for
the safety of the bicycling and motoring public. [1974 ex.s. c
141 § 1.]
47.26.305
47.26.305 Bicycle routes—Use of board funds. Bicycle routes shall, when established in accordance with RCW
47.06.100 be eligible for establishment, improvement, and
upgrading with board funds. The board shall adopt rules and
procedures that will encourage the development of a system
of bicycle routes within counties, cities, and towns. [1994 c
179 § 21; 1988 c 167 § 28; 1974 ex.s. c 141 § 2.]
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
47.26.320
47.26.320 Advance right-of-way acquisition—Definition. The term "advance right-of-way acquisition" as used in
this chapter means the acquisition of property and property
rights, together with the engineering costs necessary for the
advance right-of-way acquisition. Property or property rights
purchased must be for projects approved by the transportation improvement board or the county road administration
board as part of a city or county six-year plan or program.
[2001 c 201 § 1.]
47.26.325
47.26.325 Advance right-of-way acquisition—
Revolving fund. The city and county advance right-of-way
revolving fund is created in the custody of the treasurer. The
transportation improvement board is the administrator of the
fund and may deposit directly and spend without appropriation.
The transportation improvement board and the county
road administration board, in consultation with the association of Washington cities and the Washington association of
counties, shall adopt reasonable rules and develop policies to
implement this program. [2001 c 201 § 2.]
[Title 47 RCW—page 105]
47.26.330
Title 47 RCW: Public Highways and Transportation
47.26.330 Advance right-of-way acquisition—Management of properties and funds. (1) After any properties
or property rights are acquired through funds in the city and
county advance right-of-way revolving fund, the acquiring
city or county is responsible for the management of the properties in accordance with sound business practices and shall
provide annual status reports to the board. Funds received by
the city or county from the interim management of the properties must be deposited into the city and county advance
right-of-way revolving fund.
(2) When the city or county proceeds with the construction of an arterial project that will require the use of any of the
property so acquired, the city or county shall reimburse the
city and county advance right-of-way revolving fund. Reimbursement must reflect the original cost of the acquired property or property rights required for the project plus an interest
rate as determined annually by the board. The board shall
report on the interest rate set to the transportation committees
through its annual report.
(3) When the city or county determines that any properties or property rights acquired from funds in the city and
county advance right-of-way revolving fund will not be
required for an arterial construction project or the property
has been held by the city or county for more than six years,
the city or county shall either sell the property at fair market
value or reimburse the fund at fair market value. All proceeds
of the sale must be deposited in the city and county advance
right-of-way revolving fund. At the board's discretion, a portion of savings on transportation improvement board projects
realized through the use of the city and county advance
[right-of-way] revolving fund may be deposited back into the
city and county advance right-of-way revolving fund.
(4) Deposits in the fund may be reexpended without further or additional appropriations. [2001 c 201 § 3.]
47.26.330
instruments. Each of such bonds shall be made payable at
any time not exceeding thirty years from the date of its issuance, with such reserved rights of prior redemption, bearing
such interest, and such terms and conditions, as the state
finance committee may prescribe to be specified therein. The
bonds shall be signed by the governor and the state treasurer
under the seal of the state, one of which signatures shall be
made manually and the other signature may be in printed facsimile, and any coupons attached to such bonds shall be
signed by the same officers whose signatures thereon may be
in printed facsimile. Any bonds may be registered in the
name of the holder on presentation to the state treasurer or at
the fiscal agency of the state of Washington in New York
City, as to principal alone, or as to both principal and interest
under such regulations as the state treasurer may prescribe.
Such bonds shall be payable at such places as the state
finance committee may provide. All bonds issued hereunder
shall be fully negotiable instruments. [1973 1st ex.s. c 169 §
2; 1967 ex.s. c 83 § 37.]
47.26.402
47.26.402 Bonds—Denominations—Manner and
terms of sale—Legal investment for state funds. The
bonds issued hereunder shall be in denominations to be prescribed by the state finance committee and may be sold in
such manner and in such amounts and at such times and on
such terms and conditions as the committee may prescribe. If
the bonds are sold to any purchaser other than the state of
Washington, they shall be sold at public sale, and it shall be
the duty of the state finance committee to cause such sale to
be advertised in such manner as it shall deem sufficient.
Bonds issued under the provisions of RCW 47.26.400
through 47.26.407 shall be legal investment for any of the
funds of the state, except the permanent school fund. [1967
ex.s. c 83 § 38.]
BOND ISSUE—STATE HIGHWAYS IN URBAN AREAS
47.26.403
47.26.400
47.26.400 Issuance and sale of general obligation
bonds—Authorized—Amount—Declaration of purpose.
In order to provide funds necessary to meet the urgent needs
for highway construction on state highways within urban
areas, there shall be issued and sold general obligation bonds
of the state of Washington in the sum of two hundred million
dollars or such amount thereof and at such times as determined to be necessary by the commission. The amount of the
bonds issued and sold under the provisions of RCW
47.26.400 through 47.26.407 in any biennium shall not
exceed the amount of a specific appropriation therefor from
the proceeds of such bonds, for the construction of state highways in urban areas. The issuance, sale, and retirement of the
bonds shall be under the supervision and control of the state
finance committee which, upon request being made by the
commission, shall provide for the issuance, sale, and retirement of coupon or registered bonds to be dated, issued, and
sold from time to time in such amounts as shall be requested
by the commission. [1984 c 7 § 161; 1973 1st ex.s. c 169 § 1;
1967 ex.s. c 83 § 36.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.26.401
47.26.401 Bonds—Term—Terms and conditions—
Signatures—Registration—Where payable—Negotiable
[Title 47 RCW—page 106]
47.26.403 Bonds—Bond proceeds—Deposit and use.
The money arising from the sale of said bonds shall be deposited in the state treasury to the credit of the motor vehicle
fund and such money shall be available only for the construction of state highways within the urban areas of the state, and
for payment of the expenses incurred in the printing, issuance, and sale of any such bonds. [1967 ex.s. c 83 § 39.]
47.26.404
47.26.404 Bonds—Statement describing nature of
obligation—Pledge of excise taxes. Bonds issued under the
provisions of RCW 47.26.400 through 47.26.407 shall distinctly state that they are a general obligation of the state of
Washington, shall pledge the full faith and credit of the state
to the payment of the principal thereof and the interest
thereon and shall contain an unconditional promise to pay
such principal and interest as the same shall become due. The
principal of and interest on such bonds shall be first payable
in the manner provided in RCW 47.26.400 through 47.26.407
from the proceeds of state excise taxes on motor vehicle fuels
imposed by chapter 82.36 RCW and *chapter 82.40 RCW.
The proceeds of such excise taxes are hereby pledged to the
payment of any bonds and the interest thereon issued under
the provisions of RCW 47.26.400 through 47.26.407, and the
legislature hereby agrees to continue to impose the same
excise taxes on motor vehicle fuels in amounts sufficient to
(2004 Ed.)
Development in Urban Areas—Urban Arterials
47.26.421
pay, when due, the principal and interest on all bonds issued
under the provisions of RCW 47.26.400 through 47.26.407.
[1973 1st ex.s. c 169 § 3; 1967 ex.s. c 83 § 40.]
the motor vehicle fund at the next interest or bond payment
period. [1967 ex.s. c 83 § 43.]
*Reviser's note: Chapter 82.40 RCW was repealed by 1971 ex.s. c 175
§ 33; for later enactment see chapter 82.38 RCW.
BOND ISSUE—COUNTY AND CITY ARTERIALS
IN URBAN AREAS
47.26.405
47.26.405 Bonds—Designation of funds to repay
bonds and interest. Any funds required to repay such
bonds, or the interest thereon when due shall be taken from
that portion of the motor vehicle fund which results from the
imposition of excise taxes on motor vehicle and special fuels
and which is distributed to the state under the provisions of
*RCW 46.68.090(1)(c) for construction of state highways in
urban areas, and shall never constitute a charge against any
allocations of any other such funds to the state, counties, cities, and towns unless and until the amount of the motor vehicle fund arising from the excise taxes on motor vehicle and
special fuels and available to the state for construction of
state highways in urban areas proves insufficient to meet the
requirements for bond retirement or interest on any such
bonds. [1999 c 269 § 5; 1977 ex.s. c 317 § 17; 1967 ex.s. c
83 § 41.]
*Reviser's note: RCW 46.68.090 was amended by 2003 c 361 § 403,
changing subsection (1)(c) to subsection (2)(a).
Effective date—1999 c 269: See note following RCW 36.78.070.
Effective dates—Severability—1977 ex.s. c 317: See notes following
RCW 82.36.010.
47.26.406
47.26.406 Bonds—Repayment procedure—Bond
retirement fund. At least one year prior to the date any
interest is due and payable on such bonds or before the maturity date of any such bonds, the state finance committee shall
estimate, subject to the provisions of RCW 47.26.405, the
percentage of the receipts in money of the motor vehicle
fund, resulting from collection of excise taxes on motor vehicle fuels, for each month of the year which shall be required
to meet interest or bond payments hereunder when due, and
shall notify the state treasurer of such estimated requirement.
The state treasurer shall thereafter from time to time each
month as such funds are paid into the motor vehicle fund,
transfer such percentage of the monthly receipts from excise
taxes on motor vehicle fuels of the motor vehicle fund to the
bond retirement fund, hereby created, which fund shall be
available solely for payment of interest or bonds when due. If
in any month it shall appear that the estimated percentage of
money so made is insufficient to meet the requirements for
interest or bond retirement, the treasurer shall notify the state
finance committee forthwith and such committee shall adjust
its estimates so that all requirements for interest and principal
of all bonds issued shall be fully met at all times. [1967 ex.s.
c 83 § 42.]
47.26.420
47.26.420 Issuance and sale of general obligation
bonds—Authorized—Amount—Declaration of purpose.
In order to provide funds necessary to meet the urgent construction needs on county and city arterials within urban
areas, there are hereby authorized for issuance general obligation bonds of the state of Washington, the first authorization of which shall be in the sum of two hundred million dollars, and the second authorization of which, to be known as
series II bonds, shall be in the sum of sixty million dollars,
and the third authorization of which, to be known as series III
bonds, shall be in the sum of one hundred million dollars
which shall be issued and sold in such amounts and at such
times as determined to be necessary by the state transportation commission. The amount of such bonds issued and sold
under the provisions of RCW 47.26.420 through 47.26.427 in
any biennium shall not exceed the amount of a specific
appropriation therefor, from the proceeds of such bonds, for
the construction of county and city arterials in urban areas.
The issuance, sale, and retirement of said bonds shall be
under the supervision and control of the state finance committee which, upon request being made by the state transportation commission, shall provide for the issuance, sale, and
retirement of coupon or registered bonds to be dated, issued,
and sold from time to time in such amounts as shall be
requested by the state transportation commission. [1981 c
315 § 5; 1979 c 5 § 3. Prior: 1977 ex.s. c 317 § 18; 1973 1st
ex.s. c 169 § 4; 1967 ex.s. c 83 § 45.]
Effective date—1981 c 315: See note following RCW 47.26.080.
Appropriation—Expenditure limited to bond sale proceeds—1981 c
315: "There is appropriated from the urban arterial trust account in the
motor vehicle fund to the urban arterial board for the biennium ending June
30, 1983, the sum of thirty-five million dollars, or so much thereof as may be
necessary, to carry out section 5 of this act: PROVIDED, That the money
available for expenditure under this appropriation may not exceed the
amount of money derived from the sale of bonds authorized by section 5 of
this act and deposited to the credit of the urban arterial trust account in the
motor vehicle fund." [1981 c 315 § 13.]
Construction—1979 c 5: "Nothing in this 1979 act shall be construed
to impair the obligations of any first authorization bonds issued or to be
issued under RCW 47.26.420 through 47.26.427, or to enlarge the original
authorization thereof over two hundred million dollars, and the retirement of
and issuance of the remainder of the authorized amount of such bonds shall
proceed in accordance with law under the supervision of the state finance
committee." [1979 c 5 § 12.]
Effective dates—Severability—1977 ex.s. c 317: See notes following
RCW 82.36.010.
47.26.421
47.26.407
47.26.407 Bonds—Sums in excess of retirement
requirements—Use. Whenever the percentage of the motor
vehicle fund arising from excise taxes on motor vehicle fuels
payable into the bond retirement fund, shall prove more than
is required for the payment of interest on bonds when due, or
current retirement of bonds, any excess may, in the discretion
of the state finance committee, be available for the prior
redemption of any bonds or remain available in the fund to
reduce the requirements upon the fuel excise tax portion of
(2004 Ed.)
47.26.421 Bonds—Term—Terms and conditions—
Signatures—Registration—Where payable—Negotiable
instruments. Each of such first authorization bonds, series II
bonds, and series III bonds shall be made payable at any time
not exceeding thirty years from the date of its issuance, with
such reserved rights of prior redemption, bearing such interest, and such terms and conditions, as the state finance committee may prescribe to be specified therein. The bonds shall
be signed by the governor and the state treasurer under the
seal of the state, either or both of which signatures may be in
[Title 47 RCW—page 107]
47.26.422
Title 47 RCW: Public Highways and Transportation
printed facsimile, and any coupons attached to such bonds
shall be signed by the same officers whose signatures thereon
may be in printed facsimile. Any bonds may be registered in
the name of the holder on presentation to the state treasurer or
at the fiscal agency of the state of Washington in Seattle or
New York City, as to principal alone, or as to both principal
and interest under such regulations as the state treasurer may
prescribe. Such bonds shall be payable at such places as the
state finance committee may provide. All bonds issued hereunder shall be fully negotiable instruments. [1986 c 290 § 3;
1981 c 315 § 6; 1979 c 5 § 4; 1973 1st ex.s. c 169 § 5; 1967
ex.s. c 83 § 46.]
Effective date—1981 c 315: See note following RCW 47.26.080.
Construction—1979 c 5: See note following RCW 47.26.420.
47.26.422
47.26.422 Bonds—Denominations—Manner and
terms of sale—Legal investment for state funds. The first
authorization bonds, series II bonds, and series III bonds
issued hereunder shall be in denominations to be prescribed
by the state finance committee and may be sold in such manner and in such amounts and at such times and on such terms
and conditions as the committee may prescribe. The state
finance committee may obtain insurance, letters of credit, or
other credit facility devices with respect to the bonds and may
authorize the execution and delivery of agreements, promissory notes, and other obligations for the purpose of insuring
the payment or enhancing the marketability of the bonds.
Promissory notes or other obligations issued pursuant to this
section shall not constitute a debt or the contracting of indebtedness under any constitutional or statutory indebtedness
limitation if their payment is conditioned upon the failure of
the state to pay the principal of or interest on the bonds with
respect to which the promissory notes or other obligations
relate. The state finance committee may authorize the issuance of short-term obligations in lieu of long-term obligations for the purposes of more favorable interest rates, lower
total interest costs, and increased marketability and for the
purpose of retiring the bonds during the life of the project for
which they were issued. Bonds issued under the provisions of
RCW 47.26.420 through 47.26.427 and 47.26.425 shall be
legal investment for any of the funds of the state, except the
permanent school fund. [1986 c 290 § 4; 1981 c 315 § 7;
1979 c 5 § 5; 1967 ex.s. c 83 § 47.]
Effective date—1981 c 315: See note following RCW 47.26.080.
Construction—1979 c 5: See note following RCW 47.26.420.
47.26.423
47.26.423 Bonds—Bond proceeds—Deposit and use.
The money arising from the sale of the first authorization
bonds, series II bonds, and series III bonds shall be deposited
in the state treasury to the credit of the urban arterial trust
account in the motor vehicle fund, and such money shall be
available only for the construction and improvement of
county and city urban arterials, and for payment of the
expense incurred in the printing, issuance, and sale of any
such bonds. The costs of obtaining insurance, letters of credit,
or other credit enhancement devices with respect to the bonds
shall be considered to be expenses incurred in the issuance
and sale of the bonds. [1986 c 290 § 5; 1981 c 315 § 8; 1979
c 5 § 6; 1967 ex.s. c 83 § 48.]
Effective date—1981 c 315: See note following RCW 47.26.080.
[Title 47 RCW—page 108]
Construction—1979 c 5: See note following RCW 47.26.420.
47.26.424
47.26.424 Bonds—Statement describing nature of
obligation—Pledge of excise taxes. The first authorization
bonds, series II bonds, and series III bonds shall distinctly
state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state to the
payment of the principal thereof and the interest thereon, and
shall contain an unconditional promise to pay such principal
and interest as the same shall become due. The principal and
interest on such bonds shall be first payable in the manner
provided in RCW 47.26.420 through 47.26.427, 47.26.425,
and 47.26.4254 from the proceeds of state excise taxes on
motor vehicle and special fuels imposed by chapters 82.36
and 82.38 RCW. The proceeds of such excise taxes are
hereby pledged to the payment of any such bonds and the
interest thereon, and the legislature hereby agrees to continue
to impose the same excise taxes on motor vehicle and special
fuels in amounts sufficient to pay, when due, the principal
and interest on all such bonds. [1995 c 274 § 11; 1981 c 315
§ 9; 1979 c 5 § 7; 1977 ex.s. c 317 § 19; 1973 1st ex.s. c 169
§ 6; 1967 ex.s. c 83 § 49.]
Effective date—1981 c 315: See note following RCW 47.26.080.
Construction—1979 c 5: See note following RCW 47.26.420.
Effective dates—Severability—1977 ex.s. c 317: See notes following
RCW 82.36.010.
47.26.425
47.26.425 Bonds—Designation of funds to repay
bonds and interest. Any funds required to repay the first
authorization of two hundred million dollars of bonds authorized by RCW 47.26.420, as amended by section 18, chapter
317, Laws of 1977 ex. sess. or the interest thereon when due,
shall be taken from that portion of the motor vehicle fund
which results from the imposition of excise taxes on motor
vehicle and special fuels and which is distributed to the urban
arterial trust account in the motor vehicle fund pursuant to
*RCW 46.68.090(1)(g), and shall never constitute a charge
against any allocations of any other such funds in the motor
vehicle fund to the state, counties, cities, and towns unless
and until the amount of the motor vehicle fund arising from
the excise tax on motor vehicle and special fuels and distributed to the urban arterial trust account proves insufficient to
meet the requirements for bond retirement or interest on any
such bonds. [1999 sp.s. c 1 § 609. Prior: 1999 c 269 § 6;
1999 c 94 § 21; 1994 c 179 § 22; 1977 ex.s. c 317 § 20; 1967
ex.s. c 83 § 50.]
*Reviser's note: RCW 46.68.090 was amended by 2003 c 361 § 403,
changing subsection (1)(g) to subsection (2)(e).
Severability—Effective date—1999 sp.s. c 1: See notes following
RCW 43.19.1906.
Effective date—1999 c 269: See note following RCW 36.78.070.
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
Effective dates—Severability—1977 ex.s. c 317: See notes following
RCW 82.36.010.
47.26.4252
47.26.4252 Bonds—Series II bonds, 1979 reenactment—Designation of funds to repay bonds and interest.
Any funds required to repay the authorization of series II
bonds authorized by RCW 47.26.420, as reenacted by section
3, chapter 5, Laws of 1979, or the interest thereon when due,
(2004 Ed.)
Development in Urban Areas—Urban Arterials
shall first be taken from that portion of the motor vehicle fund
which results from the imposition of excise taxes on motor
vehicle and special fuels imposed by chapters 82.36 and
82.38 RCW and which is distributed to the urban arterial trust
account in the motor vehicle fund pursuant to *RCW
46.68.090(1)(g), subject, however, to the prior lien of the first
authorization of bonds authorized by RCW 47.26.420, as
reenacted by section 3, chapter 5, Laws of 1979. If the moneys distributed to the urban arterial trust account shall ever be
insufficient to repay the first authorization bonds together
with interest thereon, and the series II bonds or the interest
thereon when due, the amount required to make such payments on such bonds or interest thereon shall next be taken
from that portion of the motor vehicle fund which results
from the imposition of excise taxes on motor vehicle and special fuels and which is distributed to the state, counties, cities,
and towns pursuant to RCW 46.68.090. Any payments on
such bonds or interest thereon taken from motor vehicle or
special fuel tax revenues which are distributable to the state,
counties, cities, and towns, shall be repaid from the first moneys distributed to the urban arterial trust account not required
for redemption of the first authorization bonds or series II and
series III bonds or interest on those bond issues. [1999 sp.s.
c 1 § 610. Prior: 1999 c 269 § 7; 1999 c 94 § 22; 1995 c 274
§ 12; 1994 c 179 § 23; 1983 1st ex.s. c 49 § 23; 1979 c 5 § 8.]
*Reviser's note: RCW 46.68.090 was amended by 2003 c 361 § 403,
changing subsection (1)(g) to subsection (2)(e).
Severability—Effective date—1999 sp.s. c 1: See notes following
RCW 43.19.1906.
Effective date—1999 c 269: See note following RCW 36.78.070.
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
Severability—Effective date—1983 1st ex.s. c 49: See RCW
36.79.900 and 36.79.901.
Construction—1979 c 5: See note following RCW 47.26.420.
47.26.426
(2) To the extent that moneys so distributed to the urban
arterial trust account are insufficient to meet the requirements
for bond retirement or interest on any series III bonds, sixty
percent of the amount required to make such payments when
due shall first be taken from that portion of the motor vehicle
fund that results from the imposition of excise taxes on motor
vehicle and special fuels and that is distributed to the state.
The remaining forty percent shall first be taken from that portion of the motor vehicle fund that results from the imposition
of excise taxes on motor vehicle and special fuels and that is
distributed to the cities and towns pursuant to *RCW
46.68.090(1)(i) and to the counties pursuant to *RCW
46.68.090(1)(j). Of the counties', cities', and towns' share of
any additional amounts required in each fiscal year, the percentage thereof to be taken from the counties' distributive
share and from the cities' and towns' distributive share shall
correspond to the percentage of funds authorized for specific
county projects and for specific city and town projects,
respectively, from the proceeds of series III bonds, for the
period through the first eleven months of the prior fiscal year
as determined by the chairman of the transportation improvement board and reported to the state finance committee and
the state treasurer not later than the first working day of June.
(3) Any payments on such bonds or interest thereon
taken from motor vehicle or special fuel tax revenues that are
distributable to the state, counties, cities, and towns shall be
repaid from the first moneys distributed to the urban arterial
trust account not required for redemption of the first authorization bonds, series II bonds, or series III bonds or interest on
these bonds. [1999 sp.s. c 1 § 611. Prior: 1999 c 269 § 8;
1999 c 94 § 23; 1995 c 274 § 13; 1994 c 179 § 24; 1988 c 167
§ 30; 1983 1st ex.s. c 49 § 24; 1981 c 315 § 10.]
*Reviser's note: RCW 46.68.090 was amended by 2003 c 361 § 403,
changing subsection (1)(g), (i), and (j) to subsection (2)(e), (g), and (h).
Severability—Effective date—1999 sp.s. c 1: See notes following
RCW 43.19.1906.
Effective date—1999 c 269: See note following RCW 36.78.070.
47.26.4254
47.26.4254 Bonds—Series III bonds—Designation of
funds to repay bonds and interest. (1) Any funds required
to repay series III bonds authorized by RCW 47.26.420, or
the interest thereon, when due shall first be taken from that
portion of the motor vehicle fund that results from the imposition of excise taxes on motor vehicle and special fuels
imposed by chapters 82.36 and 82.38 RCW and that is distributed to the urban arterial trust account in the motor vehicle fund pursuant to *RCW 46.68.090(1)(g), subject, however, to the prior lien of the first authorization of bonds authorized by RCW 47.26.420. If the moneys so distributed to the
urban arterial trust account, after first being applied to administrative expenses of the transportation improvement board
and to the requirements of bond retirement and payment of
interest on first authorization bonds and series II bonds as
provided in RCW 47.26.425 and 47.26.4252, are insufficient
to meet the requirements for bond retirement or interest on
any series III bonds, the amount required to make such payments on series III bonds or interest thereon shall next be
taken from that portion of the motor vehicle fund that results
from the imposition of excise taxes on motor vehicle and special fuels and that is distributed to the state, counties, cities,
and towns pursuant to RCW 46.68.090, subject, however, to
subsection (2) of this section.
(2004 Ed.)
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
Severability—Effective date—1983 1st ex.s. c 49: See RCW
36.79.900 and 36.79.901.
Effective date—1981 c 315: See note following RCW 47.26.080.
47.26.4255
47.26.4255 Bonds—Series II bonds, 1979 reenactment—Charge against fuel tax revenues. Except as otherwise provided by statute, the series II bonds issued under
authority of RCW 47.26.420, as reenacted by section 3, chapter 5, Laws of 1979, the bonds authorized by RCW 47.60.560
through 47.60.640, and any general obligation bonds of the
state of Washington which may be authorized by the fortysixth legislature or thereafter and which pledge motor vehicle
and special fuel excise taxes for the payment of principal and
interest thereon shall be an equal charge against the revenues
from such motor vehicle and special fuel excise taxes. [1979
c 5 § 9.]
Construction—1979 c 5: See note following RCW 47.26.420.
47.26.426
47.26.426 Bonds—Repayment procedure—Bond
retirement account. At least one year prior to the date any
[Title 47 RCW—page 109]
47.26.427
Title 47 RCW: Public Highways and Transportation
interest is due and payable on such first authorization bonds,
series II bonds, and series III bonds or before the maturity
date of any such bonds, the state finance committee shall estimate, subject to the provisions of RCW 47.26.425,
47.26.4252, and 47.26.4254 the percentage of the receipts in
money of the motor vehicle fund, resulting from collection of
excise taxes on motor vehicle and special fuels, for each
month of the year which shall be required to meet interest or
bond payments hereunder when due, and shall notify the state
treasurer of such estimated requirement. The state treasurer,
subject to RCW 47.26.425, 47.26.4252, and 47.26.4254,
shall thereafter from time to time each month as such funds
are paid into the motor vehicle fund, transfer such percentage
of the monthly receipts from excise taxes on motor vehicle
and special fuels of the motor vehicle fund to the transportation improvement board bond retirement account, maintained
in the office of the state treasurer, which fund shall be available for payment of interest or bonds when due. If in any
month it shall appear that the estimated percentage of money
so made is insufficient to meet the requirements for interest
or bond retirement, the treasurer shall notify the state finance
committee forthwith and such committee shall adjust its estimates so that all requirements for interest and principal of all
bonds issued shall be fully met at all times. [1999 c 268 § 1;
1981 c 315 § 11; 1979 c 5 § 10; 1967 ex.s. c 83 § 51.]
Effective date—1981 c 315: See note following RCW 47.26.080.
Construction—1979 c 5: See note following RCW 47.26.420.
47.26.450
47.26.450 Allocation of funds—Value engineering
studies—Rules. The board shall adopt rules and procedures
to govern the allocation of funds subject to the appropriations
actually approved by the legislature.
The board shall develop rules and procedures to require
value engineering studies performed by an interagency team
for certain board funded projects. When determining the process, the board shall consider the project cost, length, and
complexity. [1994 c 179 § 26; 1988 c 167 § 33; 1987 c 360 §
2; 1973 1st ex.s. c 126 § 3; 1969 ex.s. c 171 § 6.]
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
47.26.460
47.26.460 Increase in funds allocated to a project—
Rules—Factors. The board shall adopt reasonable rules pursuant to which funds allocated to a project may be increased
upon a subsequent application of the county, city, town, or
transportation benefit district constructing the project. The
rules adopted by the board shall consider the following factors: (1) The financial effect of increasing the original allocation for the project upon other urban arterial projects either
approved or requested; (2) whether the project for which an
additional authorization is requested can be reduced in scope
while retaining a usable segment; (3) whether the cost of the
project shown in the original application was based upon reasonable engineering estimates; and (4) whether the requested
additional authorization is to pay for an expansion in the
scope of work originally approved. [1994 c 179 § 27; 1969
ex.s. c 171 § 7.]
47.26.427
47.26.427 Bonds—Sums in excess of retirement
requirements—Use. Whenever the percentage of the motor
vehicle fund arising from excise taxes on motor vehicle and
special fuels payable into the transportation improvement
board bond retirement account, shall prove more than is
required for the payment of interest on bonds when due, or
current retirement of bonds, any excess may, in the discretion
of the state finance committee, be available for the prior
redemption of any bonds or remain available in the fund
[account] to reduce the requirements upon the fuel excise tax
portion of the motor vehicle fund at the next interest or bond
payment period. [1999 c 268 § 2; 1979 c 5 § 11; 1967 ex.s. c
83 § 52.]
Construction—1979 c 5: See note following RCW 47.26.420.
47.26.440
47.26.440 Budget for expenditures from funds
administered by board—Estimate of revenues. Not later
than November 1st of each even-numbered year the transportation improvement board shall prepare and present to the
commission for comment and recommendation an adopted
budget for expenditures from funds administered by the
board during the ensuing biennium. The budget shall contain
an estimate of the revenues to be credited to the several
accounts and the amount, if any, of bond proceeds which the
board determines should be made available through the sale
of bonds in the ensuing biennium. [1994 c 179 § 25; 1988 c
167 § 32; 1984 c 7 § 163; 1967 ex.s. c 83 § 54.]
Savings—Severability—1988 c 167: See notes following RCW
47.26.121.
Severability—1984 c 7: See note following RCW 47.01.141.
[Title 47 RCW—page 110]
BOND ISSUE—TRANSPORTATION PROJECTS IN
URBAN AREAS
47.26.500
47.26.500 Issuance authorized. In order to provide
funds necessary to meet the urgent construction needs on
state, county, and city transportation projects, there are
hereby authorized for issuance general obligation bonds of
the state of Washington in the sum of one hundred million
dollars, which shall be issued and sold in such amounts and at
such times as determined to be necessary by the state transportation improvement board. The amount of such bonds
issued and sold under the provisions of RCW 47.26.500
through 47.26.507 in any biennium shall not exceed the
amount of a specific appropriation therefor, from the proceeds of such bonds, for the construction of state, county, and
city transportation projects. The issuance, sale, and retirement of the bonds shall be under the supervision and control
of the state finance committee which, upon request being
made by the board, shall provide for the issuance, sale, and
retirement of coupon or registered bonds to be dated, issued,
and sold from time to time in such amounts as shall be
requested by the board. [2000 2nd sp.s. c 6 § 1; 1994 c 179 §
28; 1993 c 440 § 1.]
47.26.501
47.26.501 Term—Signatures—Registration—Negotiable instruments. Each of such bonds shall be made payable at any time not exceeding thirty years from the date of its
issuance, with such reserved rights of prior redemption, bearing such interest, and such terms and conditions, as the state
finance committee may prescribe to be specified therein. The
bonds shall be signed by the governor and the state treasurer
(2004 Ed.)
Development in Urban Areas—Urban Arterials
under the seal of the state, either or both of which signatures
may be in printed facsimile, and any coupons attached to
such bonds shall be signed by the same officers whose signatures thereon may be in printed facsimile. Any bonds may be
registered in the name of the holder on presentation to the
state treasurer or at the fiscal agency of the state of Washington in Seattle or New York City, as to principal alone, or as to
both principal and interest under such rules as the state treasurer may adopt. Such bonds shall be payable at such places
as the state finance committee may provide. All bonds issued
hereunder shall be fully negotiable instruments. [1993 c 440
§ 2.]
47.26.502
47.26.502 Denominations—Manner and terms of
sale—State investment. The bonds issued under RCW
47.26.500 through 47.26.507 shall be in denominations to be
prescribed by the state finance committee and may be sold in
such manner and in such amounts and at such times and on
such terms and conditions as the committee may prescribe.
The state finance committee may obtain insurance, letters of
credit, or other credit facility devices with respect to the
bonds and may authorize the execution and delivery of agreements, promissory notes, and other obligations for the purpose of insuring the payment or enhancing the marketability
of the bonds. Promissory notes or other obligations issued
pursuant to this section shall not constitute a debt or the contracting of indebtedness under any constitutional or statutory
indebtedness limitation if their payment is conditioned upon
the failure of the state to pay the principal of or interest on the
bonds with respect to which the promissory notes or other
obligations relate. The state finance committee may authorize
the issuance of short-term obligations in lieu of long-term
obligations for the purposes of more favorable interest rates,
lower total interest costs, and increased marketability and for
the purpose of retiring the bonds during the life of the project
for which they were issued. Bonds issued under the provisions of RCW 47.26.500 through 47.26.507 shall be legal
investment for any of the funds of the state, except the permanent school fund. [1993 c 440 § 3.]
47.26.503
47.26.503 Use of proceeds. The money arising from
the sale of the bonds shall be deposited in the state treasury to
the credit of the transportation improvement account in the
motor vehicle fund, and such money shall be available only
for the construction and improvement of state, county, and
city transportation projects, and for payment of the expense
incurred in the printing, issuance, and sale of any such bonds.
The costs of obtaining insurance, letters of credit, or other
credit enhancement devices with respect to the bonds shall be
considered to be expenses incurred in the issuance and sale of
the bonds. [1993 c 440 § 4.]
47.26.504
47.26.504 Statement of obligation—Pledge of excise
taxes. Bonds issued under the provisions of RCW 47.26.500
through 47.26.507 shall distinctly state that they are a general
obligation of the state of Washington, shall pledge the full
faith and credit of the state to the payment of the principal
thereof and the interest thereon, and shall contain an unconditional promise to pay such principal and interest as the same
shall become due. The principal and interest on such bonds
(2004 Ed.)
47.26.506
shall be first payable in the manner provided in RCW
47.26.500 through 47.26.507 from the proceeds of state
excise taxes on motor vehicle and special fuels imposed by
chapters 82.36 and 82.38 RCW. The proceeds of such excise
taxes are hereby pledged to the payment of any such bonds
and the interest thereon, and the legislature hereby agrees to
continue to impose the same excise taxes on motor vehicle
and special fuels in amounts sufficient to pay, when due, the
principal and interest on all such bonds. [1995 c 274 § 14;
1993 c 440 § 5.]
47.26.505
47.26.505 Funds for repayment. Any funds required
to repay such bonds, or the interest thereon when due, shall
be taken from that portion of the motor vehicle fund which
results from the imposition of excise taxes on motor vehicle
and special fuels and which is distributed to the transportation improvement account in the motor vehicle fund under
*RCW 46.68.090(1)(h), and shall never constitute a charge
against any allocations of any other such funds in the motor
vehicle fund to the state, counties, cities, and towns unless
and until the amount of the motor vehicle fund arising from
the excise tax on motor vehicle and special fuels and distributed to the transportation improvement account proves insufficient to meet the requirements for bond retirement or interest on any such bonds. [1999 sp.s. c 1 § 612. Prior: 1999 c
269 § 9; 1999 c 94 § 24; 1994 c 179 § 29; 1993 c 440 § 6.]
*Reviser's note: RCW 46.68.090 was amended by 2003 c 361 § 403,
changing subsection (1)(h) to subsection (2)(f).
Severability—Effective date—1999 sp.s. c 1: See notes following
RCW 43.19.1906.
Effective date—1999 c 269: See note following RCW 36.78.070.
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
47.26.506
47.26.506 Repayment procedure—Bond retirement
account. At least one year prior to the date any interest is due
and payable on such bonds or before the maturity date of any
such bonds, the state finance committee shall estimate, subject to the provisions of RCW 47.26.505 the percentage of the
receipts in money of the motor vehicle fund, resulting from
collection of excise taxes on motor vehicle and special fuels,
for each month of the year which shall be required to meet
interest or bond payments under RCW 47.26.500 through
47.26.507 when due, and shall notify the state treasurer of
such estimated requirement. The state treasurer, subject to
RCW 47.26.505, shall thereafter from time to time each
month as such funds are paid into the motor vehicle fund,
transfer such percentage of the monthly receipts from excise
taxes on motor vehicle and special fuels of the motor vehicle
fund to the transportation improvement board bond retirement account, maintained in the office of the state treasurer,
which account shall be available for payment of principal and
interest or bonds when due. If in any month it shall appear
that the estimated percentage of money so made is insufficient to meet the requirements for interest or bond retirement,
the treasurer shall notify the state finance committee forthwith and such committee shall adjust its estimates so that all
requirements for interest and principal of all bonds issued
shall be fully met at all times. [1997 c 456 § 24; 1993 c 440
§ 7.]
Severability—1997 c 456: See RCW 43.99L.900.
[Title 47 RCW—page 111]
47.26.507
Title 47 RCW: Public Highways and Transportation
Effective date—1997 c 456 §§ 9-43: See RCW 43.99M.901.
47.26.507
47.26.507 Sums in excess of retirement requirements—Use. Whenever the percentage of the motor vehicle
fund arising from excise taxes on motor vehicle and special
fuels payable into the transportation improvement board
bond retirement account, shall prove more than is required
for the payment of interest on bonds when due, or current
retirement of bonds, any excess may, in the discretion of the
state finance committee, be available for the prior redemption
of any bonds or remain available in the fund [account] to
reduce the requirements upon the fuel excise tax portion of
the motor vehicle fund at the next interest or bond payment
period. [1999 c 268 § 3; 1993 c 440 § 8.]
47.26.900
47.26.900 Severability—1967 ex.s. c 83. If any provision of this 1967 amendatory act or the application thereof to
any person, firm, or corporation or circumstance is held
invalid, in whole or in part, such invalidity shall not affect
other provisions of the act which can be given effect without
the invalid provisions or application and to this end the provisions of this 1967 amendatory act are declared to be severable. [1967 ex.s. c 83 § 55.]
47.26.910
47.26.910 Effective dates—1967 ex.s. c 83. This 1967
amendatory act is necessary for the immediate preservation
of the public peace, health and safety, the support of the state
government and its existing public institutions and sections 1
through 55 and section 56, renumbered "Sec. 62", shall take
effect on the first day of the month following the approval of
this act by the governor; sections 56 through 61 shall take
effect on July 1, 1967 with respect to fees paid on or after July
1, 1967. Fees paid pursuant to RCW 46.16.070, 46.16.072,
46.16.075 or 46.16.120 prior to July 1, 1967 shall not be
affected by this act. [1967 ex.s. c 83 § 62.]
47.26.930
47.26.930 Construction—1969 ex.s. c 171. The rule of
strict construction shall have no application to this 1969 act
or to the provisions of chapter 47.26 RCW, and they shall be
liberally construed in order to carry out an effective, efficient
and equitable program of financial assistance to urban area
cities and counties for arterial roads and streets. [1969 ex.s. c
171 § 8.]
Chapter 47.28 RCW
CONSTRUCTION AND MAINTENANCE
OF HIGHWAYS
47.28.075
47.28.080
47.28.090
47.28.100
47.28.110
47.28.120
47.28.140
47.28.150
47.28.170
47.28.220
47.28.241
47.28.251
Financial information not open to public inspection.
Withdrawal of bids—New bids—Time fixed in call controls.
Opening of bids and award of contract—Deposit.
Failure or rejection of bidder.
Sureties—Qualifications—Additional sureties.
Actions for labor and materials—Limitation of action.
Highway, public transportation improvements, flood damage
prevention—Cooperative agreements.
Underpasses, overpasses constructed with federal funds—
Maintenance cost apportionment.
Emergency protection and restoration of highways.
Compost products.
Alternative delivery of construction services—Definitions.
Alternative delivery of construction services—Financial
incentives—Private contracting—Reports.
Contractor's bond to pay labor, etc.: Chapter 39.08 RCW.
County road improvement districts: Chapter 36.88 RCW.
Design standards committee for city streets: Chapter 35.78 RCW.
Liens for labor, materials on public works: Chapter 60.28 RCW.
Size, weight, load of vehicles: Chapter 46.44 RCW.
Viaducts, bridges, elevated roadways, etc., authority of cities to construct:
Chapter 35.85 RCW.
47.28.010
47.28.010 Latitude in selecting route. Whenever the
general route of any state highway shall be designated and
laid out as running to or by way of certain designated points,
without specifying the particular route to be followed to or by
way of such points, the transportation commission shall
determine the particular route to be followed by said state
highway to or by way of said designated points, and shall be
at liberty to select and adopt as a part of such state highway,
the whole or any part of any existing public highway previously designated as a county road, primary road, or secondary road or now or hereafter classified as a county road. The
commission need not select and adopt the entire routes for
such state highways at one time, but may select and adopt
parts of such routes from time to time as it deems advisable.
Where a state highway is designated as passing by way of a
certain point, this shall not require the commission to cause
such state highway to pass through or touch such point but
such designation is directional only and may be complied
with by location in the general vicinity. The department of
transportation is empowered to construct as a part of any state
highway as designated and in addition to any portion meeting
the limits of any incorporated city or town a bypass section
either through or around any such incorporated city or town.
[1977 ex.s. c 151 § 59; 1961 c 13 § 47.28.010. Prior: 1937 c
53 § 31; RRS § 6400-31.]
Chapter 47.28
Sections
47.28.010
47.28.020
47.28.025
47.28.026
47.28.030
47.28.035
47.28.040
47.28.050
47.28.060
47.28.070
Latitude in selecting route.
Width of right of way.
Description and plan of new or limited access highway—
Recording.
Description and plan of new or limited access highway—
Buildings and improvements prohibited, when.
Contracts—State forces—Monetary limits—Small businesses,
minority, and women contractors—Rules.
Cost of project, defined.
Precontract preparation of maps, plans, and specifications—
Filing.
Call for bids.
Copy of map, plans, etc.—Charge.
Form of bid—Data required—Requirements—Refusal to furnish form—Appeal.
[Title 47 RCW—page 112]
47.28.020
47.28.020 Width of right of way. From and after April
1, 1937, the width of one hundred feet is the necessary and
proper right of way width for state highways unless the
department, for good cause, adopts and designates a different
width. This section shall not be construed to require the
department to acquire increased right of way for any state
highway in existence on such date. [1984 c 7 § 164; 1961 c
13 § 47.28.020. Prior: 1937 c 53 § 30; RRS § 6400-30; 1913
c 65 § 8; RRS § 6831.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.28.025
47.28.025 Description and plan of new or limited
access highway—Recording. Whenever the department
establishes the location, width, and lines of any new highway,
or declares any such new highway as a limited access facility
(2004 Ed.)
Construction and Maintenance of Highways
and schedules the acquisition of the right of way for the highway or facility within the ensuing two years, it may cause the
description and plan of any such highway to be made, showing the center line of the highway and the established width
thereof, and attach thereto a certified copy of the resolution.
Such description, plan, and resolution shall then be recorded
in the office of the county auditor of the proper county. [1999
c 233 § 5; 1984 c 7 § 165; 1977 ex.s. c 225 § 1; 1961 c 13 §
47.28.025. Prior: 1955 c 161 § 1.]
Effective date—1999 c 233: See note following RCW 4.28.320.
Severability—1984 c 7: See note following RCW 47.01.141.
47.28.026
47.28.026 Description and plan of new or limited
access highway—Buildings and improvements prohibited, when. (1) No owner or occupier of lands, buildings, or
improvements may erect any buildings or make any improvements within the limits of any such highway, the location,
width, and lines of which have been established and recorded
as provided in RCW 47.28.025. If any such erection and
improvements are made, no allowances may be had therefor
by the assessment of damages. No permits for improvements
within the limits may be issued by any authority. The establishment of any highway location as set forth in RCW
47.28.025 is ineffective after one year from the filing thereof
if no action to condemn or acquire the property within the
limits has been commenced within that time.
(2) Unless and until the department causes a plan of a
proposed new highway or limited access facility to be
recorded in the office of the county auditor as authorized in
RCW 47.28.025, nothing contained in RCW 47.28.025 or
47.28.026 may be deemed to restrict or restrain in any manner the improvement, development, or other use by owners or
occupiers of lands, buildings, or improvements within the
limits of any proposed new or limited access highway or any
proposed relocated or widened highway. Because of the
uncertainties of federal aid and the state level of funding of
proposed construction or improvement of state highways,
plans for such improvements approved by the department
shall be deemed tentative until filed with the county auditor
as authorized in RCW 47.28.025 or until the department
commences action to condemn or otherwise acquire the right
of way for the highway improvements. [1984 c 7 § 166; 1977
ex.s. c 225 § 2; 1961 c 13 § 47.28.026. Prior: 1955 c 161 § 2.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.28.030
47.28.030 Contracts—State forces—Monetary limits—Small businesses, minority, and women contractors—Rules. A state highway shall be constructed, altered,
repaired, or improved, and improvements located on property
acquired for right of way purposes may be repaired or renovated pending the use of such right of way for highway purposes, by contract or state forces. The work or portions
thereof may be done by state forces when the estimated costs
thereof is [are] less than fifty thousand dollars and effective
July 1, 2005, sixty thousand dollars: PROVIDED, That when
delay of performance of such work would jeopardize a state
highway or constitute a danger to the traveling public, the
work may be done by state forces when the estimated cost
thereof is less than eighty thousand dollars and effective July
1, 2005, one hundred thousand dollars. When the department
(2004 Ed.)
47.28.040
of transportation determines to do the work by state forces, it
shall enter a statement upon its records to that effect, stating
the reasons therefor. To enable a larger number of small businesses, and minority, and women contractors to effectively
compete for department of transportation contracts, the
department may adopt rules providing for bids and award of
contracts for the performance of work, or furnishing equipment, materials, supplies, or operating services whenever any
work is to be performed and the engineer's estimate indicates
the cost of the work would not exceed eighty thousand dollars
and effective July 1, 2005, one hundred thousand dollars. The
rules adopted under this section:
(1) Shall provide for competitive bids to the extent that
competitive sources are available except when delay of performance would jeopardize life or property or inconvenience
the traveling public; and
(2) Need not require the furnishing of a bid deposit nor a
performance bond, but if a performance bond is not required
then progress payments to the contractor may be required to
be made based on submittal of paid invoices to substantiate
proof that disbursements have been made to laborers, materialmen, mechanics, and subcontractors from the previous
partial payment; and
(3) May establish prequalification standards and procedures as an alternative to those set forth in RCW 47.28.070,
but the prequalification standards and procedures under
RCW 47.28.070 shall always be sufficient.
The department of transportation shall comply with such
goals and rules as may be adopted by the office of minority
and women's business enterprises to implement chapter 39.19
RCW with respect to contracts entered into under this chapter. The department may adopt such rules as may be necessary to comply with the rules adopted by the office of minority and women's business enterprises under chapter 39.19
RCW. [1999 c 15 § 1; 1984 c 194 § 1; 1983 c 120 § 15; 1977
ex.s. c 225 § 3; 1973 c 116 § 1; 1971 ex.s. c 78 § 1; 1969 ex.s.
c 180 § 2; 1967 ex.s. c 145 § 40; 1961 c 233 § 1; 1961 c 13 §
47.28.030. Prior: 1953 c 29 § 1; 1949 c 70 § 1, part; 1943 c
132 § 1, part; 1937 c 53 § 41, part; Rem. Supp. 1949 § 640041, part.]
Effective date—Applicability—Severability—Conflict with federal
requirements—1983 c 120: See RCW 39.19.910, 39.19.920.
Office of minority and women's business enterprises: Chapter 39.19 RCW.
47.28.035 Cost of project, defined. The cost of any
project for the purposes of RCW 47.28.030 shall be the
aggregate of all amounts to be paid for labor, material, and
equipment on one continuous or interrelated project where
work is to be performed simultaneously. The department
shall not permit the construction of any project by state forces
by dividing a project into units of work or classes of work to
give the appearance of compliance with RCW 47.28.030.
[1984 c 194 § 2.]
47.28.035
47.28.040 Precontract preparation of maps, plans,
and specifications—Filing. Before entering into any contract for the construction, alteration, repair, or improvement
of any state highway the department shall cause the highway
to be surveyed throughout the entire length of the proposed
construction, alteration, repair, or improvement and cause to
be prepared maps, plans, and specifications, together with an
47.28.040
[Title 47 RCW—page 113]
47.28.050
Title 47 RCW: Public Highways and Transportation
estimate of the cost of the proposed work, and such information and directions as will enable a contractor to carry them
out. The maps, plans, specifications, and directions shall be
approved by the department and a copy thereof filed permanently in the department's office. [1984 c 7 § 167; 1961 c 13
§ 47.28.040. Prior: 1937 c 53 § 32, part; RRS § 6400-32,
part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.28.050
47.28.050 Call for bids. Except as may be provided by
rules and regulations adopted under RCW 47.28.030 as now
or hereafter amended the department of transportation shall
publish a call for bids for the construction of the highway
according to the maps, plans, and specifications, once a week
for at least two consecutive weeks, next preceding the day set
for receiving and opening the bids, in not less than one trade
paper of general circulation in the state. The call shall state
the time, place, and date for receiving and opening the bids,
give a brief description of the location and extent of the work,
and contain such special provisions or specifications as the
department deems necessary. When necessary to implement
chapter 39.19 RCW and the rules adopted to implement that
chapter, the department shall include in its call for bids provisions or specifications requiring bidders to comply with
chapter 39.19 RCW and the rules adopted to implement it:
PROVIDED, That when the estimated cost of any contract to
be awarded is less than fifty thousand dollars, the call for bids
need only be published in at least one paper of general circulation in the county where the major part of the work is to be
performed: PROVIDED FURTHER, That when the estimated cost of a contract to be awarded is seven thousand five
hundred dollars or less, including the cost of materials, supplies, engineering, and equipment, the department of transportation need not publish a call for bids: PROVIDED FURTHER, That after a bid call has been advertised for two consecutive weeks it may be postponed and the bids opened one
week later. [1983 c 120 § 16; 1979 ex.s. c 69 § 1; 1977 c 65
§ 1; 1973 c 116 § 2; 1969 ex.s. c 180 § 1; 1961 c 13 §
47.28.050. Prior: 1959 c 319 § 33; 1955 c 147 § 1; 1937 c 53
§ 33; RRS § 6400-33.]
Effective date—Applicability—Severability—Conflict with federal
requirements—1983 c 120: See RCW 39.19.910, 39.19.920.
Office of minority and women's business enterprises: Chapter 39.19 RCW.
47.28.070 Form of bid—Data required—Requirements—Refusal to furnish form—Appeal. Bid proposals
upon any construction or improvement of any state highway
shall be made upon contract proposal form supplied by the
department and in no other manner. The department shall,
before furnishing any person, firm, or corporation desiring to
bid upon any work for which a call for bid proposals has been
published with a contract proposal form, require from the
person, firm, or corporation, answers to questions contained
in a standard form of questionnaire and financial statement,
including a complete statement of the financial ability and
experience of the person, firm, or corporation in performing
state highway, road, or other public work. The questionnaire
and financial statement shall be sworn to before a notary public or other person authorized to take acknowledgment of
deeds, and shall be submitted once a year and at such other
times as the department may require. Whenever the department is not satisfied with the sufficiency of the answers contained in the questionnaire and financial statement or whenever the department determines that the person, firm, or corporation does not meet all of the requirements set forth in this
section it may refuse to furnish the person, firm, or corporation with a contract proposal form, and any bid proposal of
the person, firm, or corporation must be disregarded. In order
to obtain a contract proposal form, a person, firm, or corporation shall have all of the following requirements:
(1) Adequate financial resources or the ability to secure
such resources;
(2) The necessary experience, organization, and technical qualifications to perform the proposed contract;
(3) The ability to comply with the required performance
schedule taking into consideration all of its existing business
commitments;
(4) A satisfactory record of performance, integrity, judgment, and skills; and
(5) Be otherwise qualified and eligible to receive an
award under applicable laws and regulations.
The refusal is conclusive unless appeal therefrom to the
superior court of Thurston county is taken within five days,
which appeal shall be heard summarily within ten days after
it is taken and on five days' notice thereof to the department.
[1984 c 7 § 169; 1967 ex.s. c 145 § 39; 1961 c 13 § 47.28.070.
Prior: 1937 c 53 § 35; RRS § 6400-35.]
47.28.070
Severability—1984 c 7: See note following RCW 47.01.141.
47.28.075 Financial information not open to public
inspection. The department of transportation shall not be
required to make available for public inspection and copying
financial information supplied by any person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for highway construction or improvement as required
by RCW 47.28.070. [1981 c 215 § 1.]
47.28.075
47.28.060
47.28.060 Copy of map, plans, etc.—Charge. Any
person, firm, or corporation is entitled to receive copies of the
maps, plans, specifications, and directions for any work upon
which call for bids has been published, upon request therefor
and subsequent payment to the department of a reasonable
sum as required by the department in the call for bids for each
copy of such maps, plans, and specifications. Any money so
received shall be certified by the department to the state treasurer and deposited to the credit of the motor vehicle fund.
The department may deliver with or without charge informational copies of maps, plans, specifications, and directions at
such places as it may designate. [1985 c 242 § 1; 1984 c 7 §
168; 1971 c 36 § 1; 1965 ex.s. c 64 § 1; 1961 c 13 §
47.28.060. Prior: 1937 c 53 § 34; RRS § 6400-34.]
Severability—1984 c 7: See note following RCW 47.01.141.
[Title 47 RCW—page 114]
47.28.080 Withdrawal of bids—New bids—Time
fixed in call controls. Any person, firm, or corporation proposing a bid for the construction or improvement of any state
highway in response to a call for bids published therefor may
withdraw the bid proposal without forfeiture and without
prejudice to the right of the bidder to file a new bid proposal
before the time fixed for the opening of the bid proposals.
The request for the withdrawal shall be made in writing,
47.28.080
(2004 Ed.)
Construction and Maintenance of Highways
signed by the person proposing the bid or his duly authorized
agent, and filed at the place and before the time fixed in the
call for bids for receipt of the bid proposals. No bid proposal
may be considered that has not been filed with the department
before the time fixed for the receipt of bid proposals. In any
provisions regarding the filing or withdrawing of bid proposals the time fixed for the receipt of bid proposals in the call
for bid proposals as published shall control without regard for
the time when the bid proposals are actually opened. [1985 c
242 § 2; 1984 c 7 § 170; 1961 c 13 § 47.28.080. Prior: 1937
c 53 § 36; RRS § 6400-36.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.28.090
47.28.090 Opening of bids and award of contract—
Deposit. At the time and place named in the call for bids the
department of transportation shall publicly open and read the
final figure in each of the bid proposals that have been properly filed and read only the unit prices of the three lowest
bids, and shall award the contract to the lowest responsible
bidder unless the department has, for good cause, continued
the date of opening bids to a day certain, or rejected that bid.
Any bid may be rejected if the bidder has previously
defaulted in the performance of and failed to complete a written public contract, or has been convicted of a crime arising
from a previous public contract. If the lowest responsible bidder fails to meet the provisions or specifications requiring
compliance with chapter 39.19 RCW and the rules adopted to
implement that chapter, the department may award the contract to the next lowest responsible bidder which does meet
the provisions or specifications or may reject all bids and
readvertise. All bids shall be under sealed cover and accompanied by deposit in cash, certified check, cashier's check, or
surety bond in an amount equal to five percent of the amount
of the bid, and a bid shall not be considered unless the deposit
is enclosed with it. [1985 c 242 § 3; 1983 c 120 § 17; 1971
ex.s. c 21 § 2; 1961 c 13 § 47.28.090. Prior: 1955 c 83 § 1;
1949 c 64 § 1; 1937 c 53 § 37; Rem. Supp. 1949 § 6400-37.]
Effective date—Applicability—Severability—Conflict with federal
requirements—1983 c 120: See RCW 39.19.910, 39.19.920.
47.28.140
to exceed twenty additional days. After awarding the contract
the deposits of unsuccessful bidders shall be returned, but the
department may retain the deposit of the next lowest responsible bidder or bidders as it desires until such time as the contract is entered into and satisfactory bond is provided by the
bidder to whom the award is ultimately made. A low bidder
who claims error and fails to enter into a contract is prohibited from bidding on the same project if a second or subsequent call for bids is made for the project.
If in the opinion of the department the acceptance of the
bid of the lowest responsible bidder or bidders, or on prior
failure of the lowest responsible bidder or bidders the acceptance of the bid of the remaining lowest responsible bidder or
bidders, will not be for the best interest of the state, it may
reject all bids or all remaining bids and republish a call for
bids in the same manner as for an original publication
thereof. [1996 c 18 § 8; 1984 c 7 § 171; 1961 c 13 §
47.28.100. Prior: 1953 c 53 § 1; 1937 c 53 § 38; RRS § 640038.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.28.110
47.28.110 Sureties—Qualifications—Additional
sureties. At any time and as often as it may be deemed necessary, the department may require any or all sureties or any
surety company to appear and qualify themselves upon any
contractor's bond. Whenever the surety or sureties upon any
contractor's bond become insufficient or are deemed by the
department to have become insufficient, the department may
demand in writing that the contracting person, firm, or corporation furnish such further contractor's bond or bonds or additional surety in an amount not exceeding that originally
required as may be deemed necessary considering the extent
of the work remaining to be done upon the contract. No further payments may be made on the contract until such additional surety as is required is furnished. [1984 c 7 § 172;
1961 c 13 § 47.28.110. Prior: 1937 c 53 § 39; RRS § 640039.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.28.120
Office of minority and women's business enterprises: Chapter 39.19 RCW.
47.28.100
47.28.100 Failure or rejection of bidder. If the successful bidder fails to enter into the contract and furnish satisfactory bond as provided by law within twenty days from
the award, exclusive of the day of the award, his or her
deposit shall be forfeited to the state and deposited by the
state treasurer to the credit of the motor vehicle fund, and the
department may award the contract to the second lowest
responsible bidder. If the second lowest responsible bidder
fails to enter into the contract and furnish bond within twenty
days after award to him or her, forfeiture of his or her deposit
shall also be made, and the contract may be awarded to the
third lowest responsible bidder, and in like manner until the
contract and bond are executed by a responsible bidder to
whom award is made, or further bid proposals are rejected, or
the number of bid proposals are exhausted. If the contract is
not executed or no contractor's bond provided within the time
required, and there appear circumstances that are deemed to
warrant an extension of time, the department may extend the
time for execution of the contract or furnishing bond for not
(2004 Ed.)
47.28.120 Actions for labor and materials—Limitation of action. Any contracting person, firm, or corporation
performing any labor or furnishing any materials upon their
contract or otherwise for public work or improvement under
the direction of the department or any person claiming any
right of action upon any such contract with the state of Washington or who claims a cause of action against the state of
Washington arising out of any such contract must bring such
suit in the proper court in Thurston county before the expiration of one hundred and eighty days from and after the final
acceptance and the approval of the final estimate of such
work by the department; otherwise the action is forever
barred. [1984 c 7 § 173; 1961 c 13 § 47.28.120. Prior: 1937
c 53 § 40; RRS § 6400-40.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.28.140
47.28.140 Highway, public transportation improvements, flood damage prevention—Cooperative agreements. When in the opinion of the governing authorities representing the department and any agency, instrumentality,
municipal corporation, or political subdivision of the state of
[Title 47 RCW—page 115]
47.28.150
Title 47 RCW: Public Highways and Transportation
Washington, any highway, road, or street will be benefited or
improved by constructing, reconstructing, locating, relocating, laying out, repairing, surveying, altering, improving, or
maintaining, or by the establishment adjacent to, under, upon,
within, or above any portion of any such highway, road, or
street of an urban public transportation system, by either the
department or any agency, instrumentality, municipal corporation, or political subdivision of the state, and it is in the public interest to do so, the authorities may enter into cooperative
agreements wherein either agrees to perform the work and
furnish the materials necessary and pay the cost thereof,
including necessary engineering assistance, which costs and
expenses shall be reimbursed by the party whose responsibility it was to do or perform the work or improvement in the
first instance. The work may be done by either day labor or
contract, and the cooperative agreement between the parties
shall provide for the method of reimbursement. In the case of
some special benefit or improvement to a state highway
derived from any project that assists in preventing or minimizing flood damages as defined in RCW 86.16.120 or from
the construction of any public works project, including any
urban public transportation system, the department may contribute to the cost thereof by making direct payment to the
particular state department, agency, instrumentality, municipal corporation, or political subdivision on the basis of benefits received, but such payment shall be made only after a
cooperative agreement has been entered into for a specified
amount or on an actual cost basis prior to the commencement
of the particular public works project. [1991 c 322 § 29; 1984
c 7 § 174; 1967 c 108 § 6; 1961 c 13 § 47.28.140. Prior: 1955
c 384 § 8.]
Findings—Intent—1991 c 322: See note following RCW 86.12.200.
Severability—1984 c 7: See note following RCW 47.01.141.
Urban public transportation system defined: RCW 47.04.082.
47.28.150
47.28.150 Underpasses, overpasses constructed with
federal funds—Maintenance cost apportionment. Notwithstanding any of the provisions of RCW 81.53.090, where
the cost of constructing an overpass or underpass which is
part of the state highway system has been paid for in whole or
in part by the use of federal funds, the state shall at its
expense maintain the entire overpass structure and the
approaches thereto, and the railroad company shall at its
expense maintain the entire underpass structure, including
the approaches thereto. The state shall at its expense maintain
the roadway, and the railroad company shall at its expense
maintain its roadbed and tracks on or under all such structures. [1961 c 13 § 47.28.150. Prior: 1959 c 319 § 34.]
47.28.170
47.28.170 Emergency protection and restoration of
highways. (1) Whenever the department finds that as a consequence of accident, natural disaster, or other emergency, an
existing state highway is in jeopardy or is rendered impassible in one or both directions and the department further finds
that prompt reconstruction, repair, or other work is needed to
preserve or restore the highway for public travel, the department may obtain at least three written bids for the work without publishing a call for bids, and the secretary of transportation may award a contract forthwith to the lowest responsible
bidder.
[Title 47 RCW—page 116]
The department shall notify any association or organization of contractors filing a request to regularly receive notification. Notification to an association or organization of contractors shall include: (a) The location of the work to be
done; (b) the general anticipated nature of the work to be
done; and (c) the date determined by the department as reasonable in view of the nature of the work and emergent nature
of the problem after which the department will not receive
bids.
(2) Whenever the department finds it necessary to protect a highway facility from imminent damage or to perform
emergency work to reopen a highway facility, the department
may contract for such work on a negotiated basis not to
exceed force account rates for a period not to exceed thirty
working days.
(3) The secretary shall review any contract exceeding
two hundred thousand dollars awarded under subsection (1)
or (2) of this section with the transportation commission at its
next regularly scheduled meeting.
(4) Any person, firm, or corporation awarded a contract
for work must be prequalified pursuant to RCW 47.28.070
and may be required to furnish a bid deposit or performance
bond. [1990 c 265 § 1; 1984 c 7 § 175; 1971 ex.s. c 89 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.28.220
47.28.220 Compost products. (1) A contract awarded
in whole or in part for the purchase of compost products as a
soil cover or soil amendment to state highway rights of way
shall specify that compost products be purchased in accordance with the following schedule:
(a) For the period July 1, 1996, through June 30, 1997,
twenty-five percent of the total dollar amount purchased;
(b) For the period July 1, 1998, through June 30, 1999,
fifty percent of the total dollar amount purchased. The percentages in this subsection apply to the materials' value and
include services or other materials.
(2) In order to carry out the provisions of this section, the
department of transportation shall develop and adopt bid
specifications for compost products used in state highway
construction projects.
(3)(a) For purposes of this section, "compost products"
means mulch, soil amendments, ground cover, or other landscaping material derived from the biological or mechanical
conversion of biosolids or cellulose-containing waste materials.
(b) For purposes of this section, "biosolids" means
municipal sewage sludge or septic tank septage sludge that
meets the requirements of chapter 70.95J RCW. [1996 c 198
§ 4; 1992 c 174 § 14; 1991 c 297 § 14.]
Captions not law—1991 c 297: See RCW 43.19A.900.
47.28.241
47.28.241 Alternative delivery of construction services—Definitions. The definitions in this section apply
throughout RCW 47.28.251 and 41.06.380 unless the context
clearly requires otherwise.
(1) "Construction services" means those services that aid
in the delivery of the highway construction program and
include, but are not limited to, real estate services and construction engineering services.
(2004 Ed.)
Trails and Paths
(2) "Construction engineering services" include, but are
not limited to, construction management, construction
administration, materials testing, materials documentation,
contractor payments and general administration, construction
oversight, and inspection and surveying. [2003 c 363 § 102.]
Part headings not law—2003 c 363: "Part headings used in this act are
not part of the law." [2003 c 363 § 308.]
Severability—2003 c 363: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [2003 c 363 § 309.]
47.30.010
procedures for delivering these transportation projects, is required to accomplish them on a timely basis that best serves the public. It is the intent of sections 103 and 104 of this act that no state employees will lose their employment as a result of implementing new and innovative project delivery procedures." [2003 c 363 § 101.]
Part headings not law—Severability—2003 c 363: See notes following RCW 47.28.241.
Chapter 47.30
Chapter 47.30 RCW
TRAILS AND PATHS
Sections
47.28.251
47.28.251 Alternative delivery of construction services—Financial incentives—Private contracting—
Reports. (1) The department of transportation shall work
with representatives of transportation labor groups to develop
a financial incentive program to aid in retention and recruitment of employee classifications where problems exist and
program delivery is negatively affected. The department's
financial incentive program must be reviewed and approved
by the legislature before it can be implemented. This program must support the goal of enhancing project delivery
timelines as outlined in section 101, chapter 363, Laws of
2003. Upon receiving approval from the legislature, the
department of personnel shall implement, as required, specific aspects of the financial incentive package, as developed
by the department of transportation.
(2) Notwithstanding chapter 41.06 RCW, the department
of transportation may acquire services from qualified private
firms in order to deliver the transportation construction program to the public. Services may be acquired solely for augmenting the department's work force capacity and only when
the department's transportation construction program cannot
be delivered through its existing or readily available work
force. The department of transportation shall work with representatives of transportation labor groups to develop and
implement a program identifying those projects requiring
contracted services while establishing a program as defined
in subsection (1) of this section to provide the classified personnel necessary to deliver future construction programs.
The procedures for acquiring construction engineering services from private firms may not be used to displace existing
state employees nor diminish the number of existing classified positions in the present construction program. The
acquisition procedures must be in accordance with chapter
39.80 RCW.
(3) Starting in December 2004, and biennially thereafter,
the secretary shall report to the transportation committees of
the legislature on the use of construction engineering services
from private firms authorized under this section. The information provided to the committees must include an assessment of the benefits and costs associated with using construction engineering services, or other services, from private
firms, and a comparison of public versus private sector costs.
The secretary may act on these findings to ensure the most
cost-effective means of service delivery. [2003 c 363 § 103.]
Finding—Intent—2003 c 363 § 103 and 104: "The legislature finds
that there is a pressing need for additional transportation projects to meet the
mobility needs of Washington's citizens. With major new investments
approved to meet these pressing needs, additional work force assistance is
necessary to ensure and enhance project delivery timelines. Recruiting and
retaining a high quality work force, and implementing new and innovative
(2004 Ed.)
47.30.005
47.30.010
47.30.020
47.30.030
47.30.040
47.30.050
47.30.060
47.30.070
Definitions.
Recreational trail interference.
Facilities for nonmotorized traffic—Joint usage of rights of
way.
Facilities for nonmotorized traffic—Expenditure of available
funds.
Establishing paths and trails—Factors to be considered.
Expenditures for paths and trails—Minimum amount.
Expenditures deemed to be for highway purposes—Powers
and duties of department—Restrictions on use of paths and
trails.
Bicycle, equestrian, pedestrian paths as public highways.
Recreation trails system: Chapter 79A.35 RCW.
47.30.005
47.30.005 Definitions. For the purposes of this chapter,
"trail" or "path" means a public way constructed primarily for
and open to pedestrians, equestrians, or bicyclists, or any
combination thereof, other than a sidewalk constructed as a
part of a city street or county road for the exclusive use of
pedestrians. The term "trail" or "path" also includes a widened shoulder of a highway, street, or road when the extra
shoulder width is constructed to accommodate bicyclists consistent with a comprehensive plan or master plan for bicycle
trails or paths adopted by a state or local governmental
authority either prior to such construction or prior to January
1, 1980. [1979 ex.s. c 121 § 4.]
47.30.010
47.30.010 Recreational trail interference. (1) No limited access highway shall be constructed that will result in the
severance or destruction of an existing recreational trail of
substantial usage for pedestrians, equestrians or bicyclists
unless an alternative recreational trail, satisfactory to the
authority having jurisdiction over the trail being severed or
destroyed, either exists or is reestablished at the time the limited access highway is constructed. If a proposed limited
access highway will sever a planned recreational trail which
is part of a comprehensive plan for trails adopted by a state or
local governmental authority, and no alternative route for the
planned trail exists which is satisfactory to the authority
which adopted the comprehensive plan for trails, the state or
local agency proposing to construct the limited access highway shall design the facility and acquire sufficient right of
way to accommodate future construction of the portion of the
trail which will properly lie within the highway right of way.
Thereafter when such trail is developed and constructed by
the authority having jurisdiction over the trail, the state or
local agency which constructed the limited access highway
shall develop and construct the portion of such trail lying
within the right of way of the limited access highway.
(2) Where a highway other than a limited access highway crosses a recreational trail of substantial usage for pedes[Title 47 RCW—page 117]
47.30.020
Title 47 RCW: Public Highways and Transportation
trians, equestrians, or bicyclists, signing sufficient to insure
safety shall be provided.
(3) Where the construction or reconstruction of a highway other than a limited access highway would destroy the
usefulness of an existing recreational trail of substantial
usage for pedestrians, equestrians, or bicyclists or of a
planned recreational trail for pedestrians, equestrians, or
bicyclists incorporated into the comprehensive plans for trails
of the state or any of its political subdivisions, replacement
land, space, or facilities shall be provided and where such
recreational trails exist at the time of taking, reconstruction of
said recreational trails shall be undertaken. [1971 ex.s. c 130
§ 1.]
47.30.020
47.30.020 Facilities for nonmotorized traffic—Joint
usage of rights of way. Facilities for pedestrians, equestrians, or bicyclists shall be incorporated into the design of
highways and freeways along corridors where such facilities
do not exist upon a finding that such facilities would be of
joint use and conform to the comprehensive plans of public
agencies for the development of such facilities, will not
duplicate existing or proposed routes, and that safety to both
motorists and to pedestrians, equestrians, and bicyclists
would be enhanced by the segregation of traffic.
In planning and design of all highways, every effort shall
be made consistent with safety to promote joint usage of
rights of way for trails and paths in accordance with the comprehensive plans of public agencies. [1971 ex.s. c 130 § 2.]
47.30.030
47.30.030 Facilities for nonmotorized traffic—
Expenditure of available funds. Where an existing highway severs, or where the right of way of an existing highway
accommodates a trail for pedestrians, equestrians, or bicyclists or where the separation of motor vehicle traffic from
pedestrians, equestrians, or bicyclists will materially increase
the motor vehicle safety, the provision of facilities for pedestrians, equestrians, or bicyclists which are a part of a comprehensive trail plan adopted by federal, state, or local governmental authority having jurisdiction over the trail is hereby
authorized. The department of transportation, or the county
or city having jurisdiction over the highway, road, or street,
or facility is further authorized to expend reasonable amounts
out of the funds made available to them, according to the provisions of RCW 46.68.090, as necessary for the planning,
accommodation, establishment, and maintenance of such
facilities. [1999 c 269 § 10; 1979 ex.s. c 121 § 1; 1974 ex.s.
c 141 § 12; 1972 ex.s. c 103 § 2.]
Effective date—1999 c 269: See note following RCW 36.78.070.
Severability—1972 ex.s. c 103: "If any provision of this 1972 amendatory act, or its application to any person or circumstance is held invalid, the
remainder of the act, or the application of the provision to other persons or
circumstances is not affected." [1972 ex.s. c 103 § 8.]
47.30.040
47.30.040 Establishing paths and trails—Factors to
be considered. Before establishing paths and trails, the following factors shall be considered:
(1) Public safety;
(2) The cost of such paths and trails as compared to the
need or probable use;
[Title 47 RCW—page 118]
(3) Inclusion of the trail in a plan for a comprehensive
trail system adopted by a city or county in a state or federal
trails plan. [1972 ex.s. c 103 § 3.]
Severability—1972 ex.s. c 103: See note following RCW 47.30.030.
47.30.050 Expenditures for paths and trails—Minimum amount. (1) The amount expended by a city, town, or
county as authorized by RCW 47.30.030 shall never in any
one fiscal year be less than 0.42 percent of the total amount of
funds received from the motor vehicle fund according to
RCW 46.68.090. However, this section does not apply to a
city or town in any year in which the 0.42 percent equals five
hundred dollars or less, or to a county in any year in which the
0.42 percent equals three thousand dollars or less. Also, a
city, town, or county in lieu of expending the funds each year
may credit the funds to a financial reserve or special fund, to
be held for not more than ten years, and to be expended for
the purposes required or permitted by RCW 47.30.030.
(2) In each fiscal year the department of transportation
shall expend, as a minimum, for the purposes mentioned in
RCW 47.30.030 a sum equal to three-tenths of one percent of
all funds, both state and federal, expended for the construction of state highways in such year, or in order to more efficiently program trail improvements the department may defer
any part of such minimum trail or path expenditures for a fiscal year for a period not to exceed four years after the end of
such fiscal year. Any fiscal year in which the department
expends for trail or path purposes more than the minimum
sum required by this subsection, the amount of such excess
expenditure shall constitute a credit which may be carried
forward and applied to the minimum trail and path expenditure requirements for any of the ensuing four fiscal years.
(3) The department of transportation, a city, or a county
in computing the amount expended for trails or paths under
their respective jurisdictions may include the cost of
improvements consistent with a comprehensive plan or master plan for bicycle trails or paths adopted by a state or local
governmental authority either prior to such construction or
prior to January 1, 1980. [1999 c 269 § 11; 1979 ex.s. c 121
§ 2; 1972 ex.s. c 103 § 4.]
47.30.050
Effective date—1999 c 269: See note following RCW 36.78.070.
Severability—1972 ex.s. c 103: See note following RCW 47.30.030.
Perpetual advanced six-year plans for coordinated transportation program,
expenditures—Nonmotorized transportation—Railroad right-of-way:
RCW 36.81.121.
47.30.060 Expenditures deemed to be for highway
purposes—Powers and duties of department—Restrictions on use of paths and trails. For the purposes of this
chapter, the establishment of paths and trails and the expenditure of funds as authorized by RCW 47.30.030, as now or
hereafter amended, shall be deemed to be for highway, road,
and street purposes. The department of transportation shall,
when requested, and subject to reimbursement of costs, provide technical assistance and advice to cities, towns, and
counties in carrying out the purposes of RCW 47.30.030, as
now or hereafter amended. The department shall recommend
construction standards for paths and trails. The department
shall provide a uniform system of signing paths and trails
which shall apply to paths and trails under the jurisdiction of
the department and of cities, towns, and counties. The depart47.30.060
(2004 Ed.)
Obstructions on Right of Way
ment and cities, towns, and counties may restrict the use of
paths and trails under their respective jurisdictions to pedestrians, equestrians, and nonmotorized vehicles. [1979 ex.s. c
121 § 3; 1972 ex.s. c 103 § 5.]
Severability—1972 ex.s. c 103: See note following RCW 47.30.030.
47.30.070
47.30.070 Bicycle, equestrian, pedestrian paths as
public highways. For purposes of 43 U.S.C. 912 and related
provisions of federal law involving federally granted railroad
rights of way, a bicycle, equestrian or pedestrian path shall be
deemed to be a public highway under the laws of the state of
Washington. [1993 c 224 § 14.]
Chapter 47.32
Chapter 47.32 RCW
OBSTRUCTIONS ON RIGHT OF WAY
Sections
47.32.010
47.32.020
47.32.030
47.32.040
47.32.050
47.32.060
47.32.070
47.32.080
47.32.090
47.32.100
47.32.110
47.32.120
47.32.130
47.32.140
47.32.150
47.32.160
47.32.170
Order to remove obstructions—Removal by state.
Notice of order, contents, posting—Return.
Proceedings in rem authorized—Records certified.
Complaint, contents.
Notice, action, service, contents—Proceedings void when.
Hearing—Findings—Order—Appellate review.
Writ, execution of—Return—Disposition of unsold property.
Property reclaimed—Bond.
Sureties on bond—Hearing on claim.
Procedure when claimant wins or loses.
Merchandising structures—Permit—Removal.
Business places along highway.
Dangerous objects and structures as nuisances—Logs—
Abatement—Removal.
Railroad crossings, obstructions—Hearing.
Approach roads, other appurtenances—Permit.
Approach roads, other appurtenances—Rules—Construction,
maintenance of approach roads.
Approach roads, other appurtenances—Removal of installations from right of way for default.
Fences: Chapter 16.60 RCW.
Mobile home or park model trailer movement permits and decals: RCW
46.44.170 through 46.44.175.
Removal of disabled vehicle: RCW 46.55.113.
47.32.010
47.32.010 Order to remove obstructions—Removal
by state. Whenever the department determines and orders
that it is necessary for the convenience and safety of public
travel and the use of (or construction, alteration, repair,
improvement, or maintenance of) any state highway to have
the full width of right of way of any such state highway or of
any portion of the right of way of any such state highway free
from any and all obstructions, encroachments, and occupancy, other than pole lines, pipe lines, or other structures
maintained thereon for public or quasi-public utilities by virtue of a valid franchise, and causes due notice of the order to
be given as provided by law, the obstructions, encroachments, and means of occupancy, and any structure, building,
improvement, or other means of occupancy of any of the
right of way of the state highway not removed within the time
allowed by law shall become an unlawful property and may
be confiscated, removed, and sold or destroyed by the state of
Washington according to procedure as provided in this chapter, without any right in anyone to make any claim therefor,
either by reason of the removal thereof or otherwise. It is
unlawful for any person to keep, maintain, or occupy any
such unlawful structure. [1984 c 7 § 176; 1961 c 13 §
47.32.010. Prior: 1937 c 53 § 68; RRS § 6400-68.]
(2004 Ed.)
47.32.030
Severability—1984 c 7: See note following RCW 47.01.141.
47.32.020
47.32.020 Notice of order, contents, posting—
Return. Whenever the department determines that the right
of way of any state highway or any portion of the right of way
of any state highway shall be made free from any and all
obstructions, encroachments, and occupancy it shall forthwith cause to be posted, by a competent person eighteen
years of age or over upon any and all structures, buildings,
improvements, and other means of occupancy of the state
highway or portion thereof, other than property of public or
quasi-public utilities, by virtue of a valid franchise, a notice
bearing a copy of the order and dated as of the date of posting,
to all whom it may concern to vacate the right of way and to
remove all property from the right of way within ten days
after the posting of the notice, exclusive of the date of posting. The department shall also require the filing of duplicate
affidavits in proof of the postings, showing upon what structures, buildings, improvements, or other means of occupancy
of the state highway or portions thereof, respectively, copies
of the notice were posted and the date of each such posting,
sworn to by the person making the posting. [1984 c 7 § 177;
1971 ex.s. c 292 § 46; 1961 c 13 § 47.32.020. Prior: 1937 c
53 § 69; RRS § 6400-69.]
Severability—1984 c 7: See note following RCW 47.01.141.
Severability—1971 ex.s. c 292: See note following RCW 26.28.010.
47.32.030
47.32.030 Proceedings in rem authorized—Records
certified. In case the property or any portion thereof
described in the notice is not removed from the right of way
within ten days after the date of the posting, exclusive of the
date of posting, all such property upon the right of way of the
state highway or portion thereof becomes unlawful, and the
department shall commence proceedings in the name of the
state of Washington for the removal thereof by court action.
The department shall thereupon prepare two original copies
of the order together with two copies each of the notice
posted and of the affidavits in proof of posting thereof and
duplicate copies of a certificate by the department describing
with reasonable certainty and with due reference to the center
line stationing of the state highway and to proper legal subdivisional points, each structure, building, improvement,
encroachment, or other means of occupancy, other than pole
lines, pipe lines, or other structures maintained for public and
quasi-public utilities, on the state highway or portion thereof
specified in the order that remain upon the right of way as
aforesaid. Thereupon action shall be commenced in rem for
the purpose of removal of all such unlawful property, in the
superior court of the county in which the state highway or
portion thereof containing the structures is situated, entitled
and in the name of the state of Washington as plaintiff and
describing each unlawful structure, building, improvement,
encroachment, or other means of occupancy, which structures, buildings, improvements, encroachments, or other
means of occupancy shall be briefly named as defendants.
[1984 c 7 § 178; 1961 c 13 § 47.32.030. Prior: 1937 c 53 §
70; RRS § 6400-70; prior: 1925 ex.s. c 131 § 3; RRS § 68373.]
Severability—1984 c 7: See note following RCW 47.01.141.
[Title 47 RCW—page 119]
47.32.040
Title 47 RCW: Public Highways and Transportation
47.32.040 Complaint, contents. The complaint shall,
in such action, describe the property unlawfully remaining
upon the right of way of the state highway or portion thereof
with reasonable certainty by reference to the certificate of the
department, which shall be attached to and filed with the
complaint, and pray that an order be entered for the removal
from the right of way of the state highway or portion thereof
of all the described property unlawfully thereon and the disposal thereof. [1984 c 7 § 179; 1961 c 13 § 47.32.040. Prior:
1937 c 53 § 71; RRS § 6400-71; prior: 1925 ex.s. c 131 § 4;
RRS § 6837-4.]
47.32.040
Severability—1984 c 7: See note following RCW 47.01.141.
47.32.050 Notice, action, service, contents—Proceedings void when. Service of such complaint shall be given by
publication of notice thereof once a week for two successive
weeks in a newspaper of general circulation in the county in
which such action is commenced, which notice shall briefly
state the objects of the action and contain a brief description
of each structure, building, improvement, encroachment or
other means of occupancy sought to be removed from the
right of way of the state highway, describe such state highway or portion thereof by number and location and state the
time and place when and where the action will come before
the court or judge thereof; and a copy of such notice shall also
be posted at least ten days before the date of hearing of such
action upon each such structure, building, improvement,
encroachment or other means of occupancy described
therein. Posting may be made by any person qualified to
serve legal process. Want of posting upon, or failure to
describe any such structure, building, improvement,
encroachment or other means of occupancy shall render subsequent proceedings void as to those not posted upon or
described but all others described and posted upon shall be
bound by the subsequent proceedings. [1961 c 13 §
47.32.050. Prior: 1937 c 53 § 72; RRS 6400-72; prior: 1925
ex.s. c 131 § 5; RRS § 6837-5.]
47.32.050
47.32.060
47.32.060 Hearing—Findings—Order—Appellate
review. At the time and place appointed for hearing upon the
complaint, which hearing shall be by summary proceedings,
if the court or judge thereof finds that due notice has been
given by posting and publication and that the order of the
department was duly made, and is further satisfied and finds
that the state highway or portion thereof described is legally
a state highway having the width of right of way specified in
the order and that the structure, buildings, improvements, or
other means of occupancy of the state highway or portion
thereof as stated in the certificate of the department do in fact
encroach, or that any portion thereof encroach, upon the state
highway right of way, the court or judge thereof shall thereupon make and enter an order establishing that each of the
structures, buildings, improvements, and other means of
occupancy specified in the order is unlawfully maintained
within the right of way and is subject to confiscation and sale
and that they be forthwith confiscated, removed from the
right of way, and sold, and providing that six days after the
entry of the order, a writ shall issue from the court directed to
the sheriff of the county, commanding the sheriff to seize and
remove from the right of way of the state highway each such
structure, building, improvement, or other means of occu[Title 47 RCW—page 120]
pancy specified in the order forthwith on receipt of a writ
based on the order and to take and hold the property in his
custody for a period of ten days, unless redelivered earlier as
provided for by law, and if not then so redelivered to sell the
property at public or private sale and to pay the proceeds
thereof into the registry of the court within sixty days after
the issuance of the writ, and further in such action, including
costs of posting original notices of the department, the costs
of posting and publishing notices of hearing as part thereof
and any cost of removal, be paid by the clerk to the state treasurer and credited to the motor vehicle fund. The order shall
be filed with the clerk of the court and recorded in the minutes of the court, and is final unless appellate review thereof
is sought within five days after filing of the order. [1988 c
202 § 45; 1984 c 7 § 180; 1961 c 13 § 47.32.060. Prior: 1937
c 53 § 73; RRS § 6400-73; prior: 1925 ex.s. c 131 § 7; RRS
§ 6837-7.]
Severability—1988 c 202: See note following RCW 2.24.050.
Severability—1984 c 7: See note following RCW 47.01.141.
47.32.070
47.32.070 Writ, execution of—Return—Disposition
of unsold property. Six days after filing of the order above
provided for, if no review thereof be taken to the supreme
court or the court of appeals of the state, the clerk of the court
shall issue under seal of such court a writ directed to the sheriff of the county in which such court is held commanding him
to remove, take into custody and dispose of the property
described in such order and make returns thereof as provided
for such writ by said order. On receipt of such writ it shall be
the duty of such sheriff to obey the command thereof, proceed as therein directed and make return within the time fixed
by such writ; and said sheriff shall be liable upon his official
bond for the faithful discharge of such duties. Upon filing of
such return the clerk of court shall make payments as provided for in the order of court. If by the sheriff's return any of
the property seized and removed pursuant to such writ is
returned as unsold and as of no sale value, and if the court or
judge thereof be satisfied that such is the fact, the court or
judge thereof may make further order directing the destruction of such property, otherwise directing the sheriff to give
new notice and again offer the same for sale, when, if not
sold, the same may on order of court be destroyed. [1971 c
81 § 115; 1961 c 13 § 47.32.070. Prior: 1937 c 53 § 74; RRS
§ 6400-74; prior: 1925 ex.s. c 131 § 8; RRS § 6837-8.]
47.32.080
47.32.080 Property reclaimed—Bond. At any time
within ten days after the removal by virtue of such writ of any
such property from the right of way of such state highway
any person, firm, association or corporation claiming ownership or right of possession of any such property may have the
right to demand and to receive the same from the sheriff upon
making an affidavit that such claimant owns such property or
is entitled to possession thereof, stating on oath the value
thereof satisfactory to said sheriff, or which value shall be
raised to a value satisfactory to said sheriff, which value shall
be indorsed on said affidavit and signed both by said claimant
and said sheriff before such sheriff shall be required to accept
the bond hereinafter provided for, and deliver to the sheriff a
bond with sureties in double the value of such property, conditioned that such claimant will appear in the superior court
(2004 Ed.)
Obstructions on Right of Way
of such county within ten days after the bond is accepted by
the sheriff and make good such claim of title thereto and pay
all accrued costs of service of notice to remove, all costs and
disbursements to be assessed to such property and the costs of
removal and custody thereof and will hold said sheriff and the
state of Washington free from any and all claims on account
of such property or will return such property or pay its value
to said sheriff, and that such claimant will at all times thereafter keep such property off the right of way of the state highway in question. [1961 c 13 § 47.32.080. Prior: 1937 c 53 §
75; RRS § 6400-75; prior: 1925 ex.s. c 131 § 9; RRS § 68379.]
47.32.090
47.32.090 Sureties on bond—Hearing on claim. The
sureties on such bond shall justify as in other cases if the sheriff requires it and in case they do not so justify when required,
the sheriff shall retain and sell or dispose of the property; and
if the sheriff does not require the sureties to justify, he shall
stand good for their sufficiency. He shall date and indorse his
acceptance upon the bond, and shall return the affidavit, bond
and justification, if any, to the office of the clerk of such
superior court, whereupon such clerk shall set the hearing
thereof as a separate case for trial, in which such claimant
shall be the plaintiff and the sheriff and the state of Washington defendants: PROVIDED, That no costs shall, in such
case, be assessed against the sheriff or the state of Washington in the event the plaintiff should prevail. [1961 c 13 §
47.32.090. Prior: 1937 c 53 § 76; RRS § 6400-76; prior:
1925 ex.s. c 131 § 10; RRS § 6837-10.]
47.32.100
47.32.100 Procedure when claimant wins or loses. If
the claimant makes good the claimant's title to or right to possession of the property, upon payment into the registry of the
court of the costs of service or posting of original notice
issued by the department with respect to the property, the cost
of posting notice of hearing in the court and such proportion
of the cost of publication of the notice as the court may fix
and direct to be entered and the clerk's fees of filing the affidavit and bond as a separate action and of entry of judgment
therein at the amounts provided for in civil actions, judgment
shall be entered restoring the property to the claimant without
any confirmation of title as to any other claimant thereto,
relieving the sheriff from necessity of selling the property
and making return thereon, and continuing the effect of the
bond for a period of six years thereafter for the benefit of such
adverse claimants to the property, if any, as may thereafter
make claim to the property. If the claimant does not make
good such claim of title to or right to possession of the property, judgment shall be rendered against the claimant and the
sureties of the claimant for the value of the property as finally
shown by the affidavit as above provided for, together with
such fees for filing the affidavit and bond as a separate action
and for entry of judgment therein and other costs and disbursements as taxed in any civil action including the statutory
attorney fee as part thereof, for all of which execution may
accordingly issue, and relieving the sheriff from the necessity
of selling the property or making return thereon. [1984 c 7 §
181; 1961 c 13 § 47.32.100. Prior: 1937 c 53 § 77; RRS §
6400-77; prior: 1925 ex.s. c 131 § 11; RRS § 6837-11.]
Severability—1984 c 7: See note following RCW 47.01.141.
(2004 Ed.)
47.32.130
47.32.110
47.32.110 Merchandising structures—Permit—
Removal. It is unlawful for any person to build, erect, establish, operate, maintain, or conduct along and upon the right of
way of any state highway any platform, box, stand, or any
other temporary or permanent device or structure used or to
be used for the purpose of receiving, vending, or delivering
any milk, milk cans, vegetables, fruits, merchandise, produce, or any other thing or commodity of any nature unless a
permit therefor has first been obtained from the department.
The department shall in each instance determine where any
platform, box, stand, or any other temporary or permanent
device or structure shall be permitted. Upon the existence of
any such device or structure without a permit having been
first obtained, it shall be considered an obstruction unlawfully upon the right of way of the state highway, and the
department may proceed to effect its removal. [1984 c 7 §
182; 1961 c 13 § 47.32.110. Prior: 1937 c 53 § 78; RRS §
6400-78; 1927 c 309 § 48; RRS § 6362-48; 1923 c 181 § 10;
RRS § 6358-1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.32.120
47.32.120 Business places along highway. It is unlawful for any person to erect a structure or establishment or
maintain a business, the nature of which requires the use by
patrons or customers of property adjoining the structure or
establishment unless the structure or establishment is located
at a distance from the right of way of any state highway so
that none of the right of way thereof is required for the use of
the patrons or customers of the establishment. Any such
structure erected or business maintained that makes use of or
tends to invite patrons to use the right of way or any portion
thereof of any state highway by occupying it while a patron is
a public nuisance, and the department may fence the right of
way of the state highway to prevent such unauthorized use
thereof. [1984 c 7 § 183; 1961 c 13 § 47.32.120. Prior: 1937
c 53 § 79; RRS § 6400-79.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.32.130
47.32.130 Dangerous objects and structures as nuisances—Logs—Abatement—Removal. (1) Whenever
there exists upon the right of way of any state highway or off
the right of way thereof in sufficiently close proximity
thereto, any structure, device, or natural or artificial thing that
threatens or endangers the state highway or portion thereof,
or that tends to endanger persons traveling thereon, or
obstructs or tends to obstruct or constitutes a hazard to vehicles or persons traveling thereon, the structure, device, or natural or artificial thing is declared to be a public nuisance, and
the department is empowered to take such action as may be
necessary to effect its abatement. Any such structure, device,
or natural or artificial thing considered by the department to
be immediately or eminently dangerous to travel upon a state
highway may be forthwith removed, and the removal in no
event constitutes a breach of the peace or trespass.
(2) Logs dumped on any state highway roadway or in
any state highway drainage ditch due to equipment failure or
for any other reason shall be removed immediately. Logs
remaining within the state highway right of way for a period
of thirty days shall be confiscated and removed or disposed of
as directed by the department. [1984 c 7 § 184; 1961 c 13 §
[Title 47 RCW—page 121]
47.32.140
Title 47 RCW: Public Highways and Transportation
47.32.130. Prior: 1947 c 206 § 3; 1937 c 53 § 80; Rem. Supp.
1947 § 6400-80.]
Severability—1984 c 7: See note following RCW 47.01.141.
Obstructing highway, public nuisance: RCW 9.66.010.
Placing dangerous substances or devices on highway: RCW 9.66.050,
46.61.645, 70.93.060.
approach road or any other facility, thing, or appurtenance
not heretofore permitted by law, without first obtaining written permission from the department. [1984 c 7 § 185; 1961 c
13 § 47.32.150. Prior: 1947 c 201 § 1; Rem. Supp. 1947 §
6402-50.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.32.160
47.32.140
47.32.140 Railroad crossings, obstructions—Hearing. Each railroad company shall keep its right of way clear
of all brush and timber in the vicinity of a railroad grade
crossing with a state highway for a distance of one hundred
feet from the crossing in such manner as to permit a person
upon the highway to obtain an unobstructed view in both
directions of an approaching train. The department shall
cause brush and timber to be cleared from the right of way of
a state highway in the proximity of a railroad grade crossing
for a distance of one hundred feet from the crossing in such
manner as to permit a person upon the highway to obtain an
unobstructed view in both directions of an approaching train.
It is unlawful to erect or maintain a sign, signboard, or billboard, except official highway signs and traffic devices and
railroad warning or operating signs, outside the corporate
limits of any city or town within a distance of one hundred
feet from the point of intersection of the highway and railroad
grade crossing unless, after thirty days notice to the Washington utilities and transportation commission and the railroad
operating the crossing, the department determines that it does
not obscure the sight distance of a person operating a vehicle
or train approaching the grade crossing.
When a person who has erected or who maintains such a
sign, signboard, or billboard or when a railroad company permits such brush or timber in the vicinity of a railroad grade
crossing with a state highway or permits the surface of a
grade crossing to become inconvenient or dangerous for passage and who has the duty to maintain it, fails, neglects, or
refuses to remove or cause to be removed such brush, timber,
sign, signboard, or billboard, or maintain the surface of the
crossing, the utilities and transportation commission upon
complaint of the department or upon complaint of any party
interested, or upon its own motion, shall enter upon a hearing
in the manner now provided for hearings with respect to railroad-highway grade crossings, and make and enforce proper
orders for the removal of the brush, timber, sign, signboard or
billboard, or maintenance of the crossing. However, nothing
in this section prevents the posting or maintaining of any
legal notice or sign, signal, or traffic device required or permitted to be posted or maintained, or the placing and maintaining thereon of highway or road signs or traffic devices
giving directions or distances for the information of the public when the signs are approved by the department. The
department shall inspect highway grade crossings and make
complaint of the violation of any provisions of this section.
[1983 c 19 § 2; 1961 c 13 § 47.32.140. Prior: 1955 c 310 § 7;
1937 c 53 § 81; RRS § 6400-81; prior: 1923 c 129 §§ 1-6;
RRS §§ 10510-1—10510-6.]
Railroad grade crossings, obstructions: RCW 36.86.100.
47.32.150
47.32.150 Approach roads, other appurtenances—
Permit. No person, firm, or corporation may be permitted to
build or construct on state highway rights of way any
[Title 47 RCW—page 122]
47.32.160 Approach roads, other appurtenances—
Rules—Construction, maintenance of approach roads.
The department is hereby authorized and empowered at its
discretion to adopt reasonable rules governing the issuance of
permits under RCW 47.32.150 for the construction of any
approach road, facility, thing, or appurtenance, upon state
highway rights of way. The rules shall be designed to achieve
and preserve reasonable standards of highway safety and the
operational integrity of the state highway facility. Any permit
issued may contain such terms and conditions as may be prescribed. All such construction shall be under the supervision
of the department and at the expense of the applicant. After
completion of the construction of the particular approach
road, facility, thing, or appurtenance, it shall be maintained at
the expense of the applicant and in accordance with the directions of the department. [1987 c 227 § 1; 1984 c 7 § 186;
1961 c 13 § 47.32.160. Prior: 1947 c 201 § 2; Rem. Supp.
1947 § 6402-51.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.32.170
47.32.170 Approach roads, other appurtenances—
Removal of installations from right of way for default.
Upon failure of the applicant to construct or maintain the particular approach road, facility, thing, or appurtenance in
accordance with the conditions of the permit and in accordance with the rules of the department, the department may,
after the expiration of thirty days following transmittal of a
written notice to the applicant, remove all installations upon
the right of way at the expense of the applicant, which
expense may be recovered from the applicant by the department for the state in any court of competent jurisdiction.
[1984 c 7 § 187; 1961 c 13 § 47.32.170. Prior: 1947 c 201 §
3; Rem. Supp. 1947 § 6402-52.]
Severability—1984 c 7: See note following RCW 47.01.141.
Chapter 47.36
Chapter 47.36 RCW
TRAFFIC CONTROL DEVICES
Sections
47.36.005
47.36.010
47.36.020
47.36.030
47.36.040
47.36.050
47.36.053
47.36.060
47.36.070
47.36.080
47.36.090
47.36.095
47.36.097
47.36.100
47.36.110
47.36.120
Definitions.
Restoration of United States survey markers.
Traffic control signals.
Traffic control devices—Specifications to be furnished to
counties and cities.
Furnished by department, paid for by counties and cities.
Duty to erect traffic devices on state highways and railroad
crossings.
General duty to place and maintain traffic devices on state
highways and railroad crossings.
Traffic devices on county roads and city streets.
Failure to erect signs, procedure.
Signs at railroad crossings.
Cooperation with United States on road markers.
Highway designation system—Signs.
Highway designation system—Filing.
Directional, caution, and stop signs.
Stop signs, "Yield" signs—Duties of persons using highway.
City limit signs.
(2004 Ed.)
Traffic Control Devices
47.36.130
47.36.141
47.36.180
47.36.200
47.36.250
47.36.260
47.36.270
47.36.280
47.36.290
47.36.300
47.36.310
47.36.320
47.36.325
47.36.330
47.36.340
47.36.350
47.36.400
Meddling with signs prohibited.
Bus shelters—Advertising.
Forbidden devices—Penalty.
Signs or flagmen at thoroughfare work sites—Penalty.
Dangerous road conditions requiring special tires, chains, or
traction equipment—Signs or devices—Penalty.
Signs indicating proper lane usage.
Regional shopping center directional signs.
Pavement marking standards.
State park directional signs.
Supplemental directional signs—Erection by local governments.
Motorist information signs—Interstate highways—Contents,
placement, fees.
Motorist information signs, tourist-oriented directional
signs—Primary and scenic roads—Contents, placement,
fees.
Motorist information signs—Private contractors.
Motorist information signs—Maximum number and distance.
Motorist information signs—Lodging.
Motorist information signs—Installation time.
Adopt-a-highway signs.
County roads, signs, signals, guideposts—Standards: RCW 36.86.040.
Range areas, signs: RCW 16.24.060.
Rules of the road: Chapter 46.61 RCW.
47.36.005
47.36.005 Definitions. The definitions set forth in this
section apply throughout this chapter.
(1) "Erect" means to construct, build, raise, assemble,
place, affix, attach, create, paint, draw, or in any other way
bring into being or establish.
(2) "Interstate system" means a state highway that is or
becomes part of the national system of interstate and defense
highways as described in section 103(d) of Title 23, United
States Code.
(3) "Maintain" means to allow to exist.
(4) "Primary system" means a state highway that is or
becomes part of the federal-aid primary system as described
in section 103(b) of Title 23, United States Code.
(5) "Scenic system" means (a) a state highway within a
public park, federal forest area, public beach, public recreation area, or national monument, (b) a state highway or portion of a highway outside the boundaries of an incorporated
city or town designated by the legislature as a part of the scenic system, or (c) a state highway or portion of a highway
outside the boundaries of an incorporated city or town designated by the legislature as a part of the scenic and recreational
highway system except for the sections of highways specifically excluded in RCW 47.42.025.
(6) "Motorist information sign panel" means a panel,
rectangular in shape, located in the same manner as other
official traffic signs readable from the main traveled ways,
and consisting of:
(a) The words "GAS," "FOOD," "LODGING," "CAMPING," "RECREATION," or "TOURIST ACTIVITIES" and
directional information; and
(b) One or more individual business signs mounted on
the panel.
(7) "Business sign" means a separately attached sign
mounted on the motorist information sign panel or roadside
area information panel to show the brand or trademark and
name, or both, of the motorist service available on the crossroad at or near the interchange. Nationally, regionally, or
locally known commercial symbols or trademarks for service
stations, restaurants, and motels shall be used when applicable. The brand or trademark identification symbol used on the
(2004 Ed.)
47.36.030
business sign shall be reproduced with the colors and general
shape consistent with customary use. Messages, trademarks,
or brand symbols that interfere with, imitate, or resemble an
official warning or regulatory traffic sign, signal, or device
are prohibited.
(8) "Roadside area information panel or display" means
a panel or display located so as not to be readable from the
main traveled way, erected in a safety rest area, scenic overlook, or similar roadside area, for providing motorists with
information in the specific interest of the traveling public.
(9) "Tourist-oriented directional sign" means a sign on a
motorist information sign panel on the state highway system
to provide directional information to a qualified tourist-oriented business, service, or activity.
(10) "Qualified tourist-oriented business" means a lawful cultural, historical, recreational, educational, or entertaining activity or a unique or unusual commercial or nonprofit
activity, the major portion of whose income or visitors are
derived during its normal business season from motorists not
residing in the immediate area of the activity.
(11) "Adopt-a-highway sign" means a sign on a state
highway right of way referring to the departments' adopt-ahighway litter control program. [1999 c 201 § 1; 1991 c 94 §
3.]
47.36.010
47.36.010 Restoration of United States survey markers. The department shall fix permanent monuments at the
original positions of all United States government monuments at township corners, section corners, quarter section
corners, meander corners, and witness markers, as originally
established by the United States government survey whenever any such original monuments or markers fall within the
right of way of any state highway, and aid in the reestablishment of any such corners, monuments, or markers destroyed
or obliterated by the construction of any state highway by
permitting inspection of the records in the department's
office. [1984 c 7 § 188; 1961 c 13 § 47.36.010. Prior: 1937
c 53 § 42; RRS § 6400-42; 1931 c 117 § 1; RRS § 6830-1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.36.020
47.36.020 Traffic control signals. The secretary of
transportation shall adopt specifications for a uniform system
of traffic control signals consistent with the provisions of this
title for use upon public highways within this state. Such uniform system shall correlate with and so far as possible conform to the system current as approved by the American
Association of State Highway Officials and as set out in the
manual of uniform traffic control devices for streets and
highways. [1977 ex.s. c 151 § 60; 1961 c 13 § 47.36.020.
Prior: 1937 c 53 § 50; RRS § 6400-50; prior: 1927 c 309 §
6; RRS § 6362-6.]
47.36.030
47.36.030 Traffic control devices—Specifications to
be furnished to counties and cities. The secretary of transportation shall have the power and it shall be its duty to adopt
and designate a uniform state standard for the manufacture,
display, erection, and location of all signs, signals, signboards, guideposts, and other traffic devices erected or to be
erected upon the state highways of the state of Washington
for the purpose of furnishing information to persons traveling
[Title 47 RCW—page 123]
47.36.040
Title 47 RCW: Public Highways and Transportation
upon such state highways regarding traffic regulations, directions, distances, points of danger, and conditions requiring
caution, and for the purpose of imposing restrictions upon
persons operating vehicles thereon. Such signs shall conform
as nearly as practicable to the manual of specifications for the
manufacture, display, and erection of uniform traffic control
devices for streets and highways and all amendments, corrections, and additions thereto. The department of transportation shall prepare plans and specifications of the uniform
state standard of traffic devices so adopted and designated,
showing the materials, colors, and designs thereof, and shall
upon the issuance of any such plans and specifications or
revisions thereof and upon request, furnish to the boards of
county commissioners and the governing body of any incorporated city or town, a copy thereof. Signs, signals, signboards, guideposts, and other traffic devices erected on
county roads shall conform in all respects to the specifications of color, design, and location approved by the secretary.
Traffic devices hereafter erected within incorporated cities
and towns shall conform to such uniform state standard of
traffic devices so far as is practicable. The uniform system
must allow local transit authority bus shelters located within
the right of way of the state highway system to display and
maintain commercial advertisements subject to applicable
federal regulations, if any. [2003 c 198 § 3; 1977 ex.s. c 151
§ 61; 1961 c 13 § 47.36.030. Prior: 1945 c 178 § 1, part;
1937 c 53 § 48, part; Rem. Supp. 1945 § 6400-48, part; prior:
1931 c 118 § 1, part; RRS § 6308-1, part; 1923 c 102 § 1,
part; 1917 c 78 § 1, part; RRS § 6303, part.]
47.36.040
47.36.040 Furnished by department, paid for by
counties and cities. The department, upon written request,
shall cause to be manufactured, painted, and printed, and
shall furnish to any county legislative authority or the governing body of any incorporated city or town, directional
signboards, guide boards, and posts of the uniform state standard of color, shape, and design for the erection and maintenance thereof by the county legislative authority or the governing body of any incorporated city or town upon the roads
and streets within their respective jurisdictions. The directional signboards, guide boards, and posts shall be manufactured and furnished, as aforesaid, pursuant to written request
showing the number of signs desired and the directional or
guide information to be printed thereon. The department shall
fix a charge for each signboard, guide board, and post manufactured and furnished as aforesaid, based upon the ultimate
cost of the operations to the department, and the county legislative authority, from the county road fund, and the governing body of any incorporated city or town, from the street
fund, shall pay the charges so fixed for all signboards, guide
boards, and posts so received from the department. [1984 c 7
§ 189; 1961 c 13 § 47.36.040. Prior: 1945 c 178 § 1, part;
1937 c 53 § 48, part; Rem. Supp. 1945 § 6400-48, part; prior:
1931 c 118 § 1, part; RRS § 6308-1, part; 1923 c 102 § 1,
part; 1917 c 78 § 1, part; RRS § 6303, part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.36.050
47.36.050 Duty to erect traffic devices on state highways and railroad crossings. The department shall erect
and maintain upon every state highway in the state of Wash[Title 47 RCW—page 124]
ington suitable and proper signs, signals, signboards, guideposts, and other traffic devices according to the adopted and
designated state standard of design, erection, and location,
and in the manner required by law. The department shall
erect and maintain upon all state highways appropriate stop
signs, warning signs, and school signs. Any person, firm, corporation, or municipal corporation, building, owning, controlling, or operating a railroad that crosses any state highway
at grade shall construct, erect, and maintain at or near each
point of crossing, or at such point or points as will meet the
approval of the department, a sign of the type known as the
saw buck crossing sign with the lettering "railroad crossing"
inscribed thereon and also a suitable inscription indicating
the number of tracks. The sign must be of standard design
that will comply with the plans and specifications furnished
by the department. Additional safety devices and signs may
be installed at any time when required by the utilities and
transportation commission as provided by laws regulating
railroad-highway grade crossings. [1984 c 7 § 190; 1961 c 13
§ 47.36.050. Prior: 1937 c 53 § 49; RRS § 6400-49; prior:
1931 c 118 § 1, part; RRS § 6308-1, part; 1923 c 102 § 1,
part; RRS § 6303, part; 1919 c 146 § 1; 1917 c 78 § 2; RRS §
6304. FORMER PART OF SECTION: 1937 c 53 § 51 now
in RCW 47.36.053.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.36.053
47.36.053 General duty to place and maintain traffic
devices on state highways and railroad crossings. The
department shall place and maintain such traffic devices conforming to the manual and specifications adopted upon all
state highways as it deems necessary to carry out the provisions of this title or to regulate, warn, or guide traffic. [1984
c 7 § 191; 1961 c 13 § 47.36.053. Prior: 1937 c 53 § 51; RRS
§ 6400-51. Formerly RCW 47.36.050, part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.36.060
47.36.060 Traffic devices on county roads and city
streets. Local authorities in their respective jurisdictions
shall place and maintain such traffic devices upon public
highways under their jurisdiction as are necessary to carry
out the provisions of the law or local traffic ordinances or to
regulate, warn, or guide traffic. Cities and towns, which as
used in this section mean cities and towns having a population of over fifteen thousand according to the latest federal
census, shall adequately equip with traffic devices, streets
that are designated as forming a part of the route of a primary
or secondary state highway and streets which constitute connecting roads and secondary state highways to such cities and
towns. The traffic devices, signs, signals, and markers shall
comply with the uniform state standard for the manufacture,
display, direction, and location thereof as designated by the
department. The design, location, erection, and operation of
traffic devices and traffic control signals upon such city or
town streets constituting either the route of a primary or secondary state highway to the city or town or connecting streets
to the primary or secondary state highways through the city
or town shall be under the direction of the department, and if
the city or town fails to comply with any such directions, the
department shall provide for the design, location, erection, or
operation thereof, and any cost incurred therefor shall be
(2004 Ed.)
Traffic Control Devices
charged to and paid from any funds in the motor vehicle fund
of the state that have accrued or may accrue to the credit of
the city or town, and the state treasurer shall issue warrants
therefor upon vouchers submitted and approved by the
department. [1984 c 7 § 192; 1961 c 13 § 47.36.060. Prior:
1955 c 179 § 4; 1939 c 81 § 1; 1937 c 53 § 52; RRS § 640052.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.36.110
highways and branches, or portions thereof, in accord with
that system, and to install signs in accord therewith on such
state highways and branches, or portions thereof. The system
may be changed from time to time and shall be extended to
new state highways and branches, or portions thereof, as they
are hereafter established by the legislature. [1984 c 7 § 196;
1967 ex.s. c 145 § 43; 1963 c 24 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
Classification of highways: RCW 47.04.020.
47.36.070
47.36.070 Failure to erect signs, procedure. Whenever any person, firm, corporation, municipal corporation, or
local authorities responsible for the erection and maintenance, or either, of signs at any railroad crossing or point of
danger upon any state highway fails, neglects, or refuses to
erect and maintain, or either, the sign or signs as required by
law at highway-railroad grade crossings, the utilities and
transportation commission shall upon complaint of the
department or upon complaint of any party interested, or
upon its own motion, enter upon a hearing in the manner provided by law for hearings with respect to railroad-highway
grade crossings and make and enforce proper orders for the
erection or maintenance of the signs, or both. [1984 c 7 §
193; 1961 c 13 § 47.36.070. Prior: 1937 c 53 § 54; RRS §
6400-54.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.36.080
47.36.080 Signs at railroad crossings. Wherever it is
considered necessary or convenient the department may erect
approach and warning signs upon the approach of any state
highway to a highway-railroad grade crossing situated at a
sufficient distance therefrom to make the warning effective.
The department may further provide such additional or other
highway-railroad grade crossing markings as may be considered to serve the interests of highway safety. [1984 c 7 § 194;
1961 c 13 § 47.36.080. Prior: 1937 c 53 § 57; RRS § 640057.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.36.090
47.36.090 Cooperation with United States on road
markers. Standard federal road markers shall be placed on
state highways in the manner requested by the department of
transportation of the United States. The department of transportation of the state of Washington is authorized and
empowered to cooperate with the several states and with the
federal government in promoting, formulating, and adopting
a standard and uniform system of numbering or designating
state highways of an interstate character and in promoting,
formulating, and adopting uniform and standard specifications for the manufacture, display, erection, and location of
road markers and signs, for the information, direction, and
control of persons traveling upon public highways. [1984 c 7
§ 195; 1961 c 13 § 47.36.090. Prior: 1937 c 53 § 55; RRS §
6400-55; prior: 1925 c 24 § 1; RRS § 6303-1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.36.095
47.36.095 Highway designation system—Signs. The
department is hereby authorized to establish a continuing system for the designating of state highways and branches or
portions thereof, heretofore established by the legislature of
the state of Washington, to give designations to such state
(2004 Ed.)
47.36.097
47.36.097 Highway designation system—Filing. Designations or redesignations assigned under the system by the
department pursuant to RCW 47.36.095 as each is made,
shall be filed with the secretary of state and with the auditor
of each county. Thereafter such highways shall be so designated for all purposes. [1984 c 7 § 197; 1967 ex.s. c 145 §
46.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.36.100
47.36.100 Directional, caution, and stop signs. Directional signs showing distance and direction to points of
importance may be placed at all crossings and intersections
of primary and secondary state highways. The department
may place such directional signs as it deems necessary upon
any city streets designated by it as forming a part of the route
of any primary or secondary state highway through any
incorporated city or town. Caution and warning signs or signals shall be placed wherever practicable on all primary and
secondary state highways in a manner provided by law. Stop
signs shall be placed, erected, and maintained by the department as follows: Upon all county roads at the point of intersection with any arterial primary or secondary state highway;
upon all primary and secondary state highways at the point of
intersection with any county road that has been designated by
the department as an arterial having preference over the traffic on the state highway; and upon at least one state highway
at the intersection of two state highways. [1984 c 7 § 198;
1967 ex.s. c 145 § 38; 1961 c 13 § 47.36.100. Prior: 1947 c
206 § 1; 1937 c 53 § 56; Rem. Supp. 1947 § 6400-56.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.36.110
47.36.110 Stop signs, "Yield" signs—Duties of persons using highway. In order to provide safety at intersections on the state highway system, the department may
require persons traveling upon any portion of such highway
to stop before entering the intersection. For this purpose there
may be erected a standard stop sign as prescribed in the state
department of transportation's "Manual on Uniform Traffic
Control Devices for Streets and Highways." All persons traveling upon the highway shall come to a complete stop at such
a sign, and the appearance of any sign so located is sufficient
warning to a person that he is required to stop. A person stopping at such a sign shall proceed through that portion of the
highway in a careful manner and at a reasonable rate of speed
not to exceed twenty miles per hour. It is unlawful to fail to
comply with the directions of any such stop sign. When the
findings of a traffic engineering study show that the condition
of an intersection is such that vehicles may safely enter the
major artery without stopping, the department or local
authorities in their respective jurisdictions shall install and
[Title 47 RCW—page 125]
47.36.120
Title 47 RCW: Public Highways and Transportation
maintain a "Yield" sign. [1984 c 7 § 199; 1963 ex.s. c 3 § 49;
1961 c 13 § 47.36.110. Prior: 1955 c 146 § 6; 1937 c 53 § 59;
RRS § 6400-59.]
Severability—1984 c 7: See note following RCW 47.01.141.
Arterial highways designated—Stopping on entering: RCW 46.61.195.
47.36.120
47.36.120 City limit signs. The department shall erect
wherever it deems necessary upon state highways at or near
their point of entrance into cities and towns, signs of the standard design designating the city or town limits of the cities or
towns. [1984 c 7 § 200; 1961 c 13 § 47.36.120. Prior: 1937
c 53 § 58; RRS § 6400-58.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.36.130 Meddling with signs prohibited. No person
shall without lawful authority attempt to or in fact alter,
deface, injure, knock down, or remove any official traffic
control signal, traffic device or railroad sign or signal, or any
inscription, shield, or insignia thereon, or any other part
thereof. [1961 c 13 § 47.36.130. Prior: 1937 c 53 § 53; RRS
§ 6400-53.]
47.36.130
Defacing, injuring, or destroying signs: RCW 46.61.080.
Imitation of signs: RCW 46.61.075.
Structures concealing signs prohibited: RCW 46.61.075.
Unlawful erection of traffic devices: RCW 46.61.075.
47.36.141
47.36.141 Bus shelters—Advertising. (1) Local transit
authority bus shelters within the right of way of the state
highway system may display and maintain commercial
advertisements subject to applicable federal regulations, if
any. Pursuant to RCW 47.12.120, the department may lease
state right of way air space to local transit authorities for this
purpose, unless there are significant safety concerns regarding the placement of certain advertisements.
(2) Advertisements posted on a local transit authority's
bus shelter may not exceed twenty-four square feet on each
side of the panel. Panels may not be placed on the roof of the
shelter or on the forward side of the shelter facing oncoming
traffic. [2003 c 198 § 1.]
47.36.180 Forbidden devices—Penalty. (1) It is
unlawful to erect or maintain at or near a city street, county
road, or state highway any structure, sign, or device:
(a) Visible from a city street, county road, or state highway and simulating any directional, warning, or danger sign
or light likely to be mistaken for such a sign or bearing any
such words as "danger," "stop," "slow," "turn," or similar
words, figures, or directions likely to be construed as giving
warning to traffic;
(b) Visible from a city street, county road, or state highway and displaying any red, green, blue, or yellow light or
intermittent or blinking light or rotating light identical or similar in size, shape, and color to that used on any emergency
vehicle or road equipment or any light otherwise likely to be
mistaken for a warning, danger, directional, or traffic control
signal or sign;
(c) Visible from a city street, county road, or state highway and displaying any lights tending to blind persons operating vehicles upon the highway, city street, or county road,
or any glaring light, or any light likely to be mistaken for a
47.36.180
[Title 47 RCW—page 126]
vehicle upon the highway or otherwise to be so mistaken as to
constitute a danger; or
(d) Visible from a city street, county road, or state highway and flooding or intending to flood or directed across the
roadway of the highway with a directed beam or diffused
light, whether or not the flood light is shielded against directing its flood beam toward approaching traffic on the highway, city street, or county road.
(2) Any structure or device erected or maintained contrary to the provisions of this section is a public nuisance, and
the department, the chief of the Washington state patrol, the
county sheriff, or the chief of police of any city or town shall
notify the owner thereof that it constitutes a public nuisance
and must be removed, and if the owner fails to do so, the
department, the chief of the Washington state patrol, the
county sheriff, or the chief of police of any city or town may
abate the nuisance.
(3) If the owner fails to remove any structure or device
within fifteen days after being notified to remove the structure or device as provided in this section, he or she is guilty of
a misdemeanor. [2003 c 53 § 257; 1984 c 7 § 201; 1961 c 13
§ 47.36.180. Prior: 1957 c 204 § 1; 1937 c 53 § 62; RRS §
6400-62.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
Severability—1984 c 7: See note following RCW 47.01.141.
47.36.200 Signs or flagmen at thoroughfare work
sites—Penalty. (1) When construction, repair, or maintenance work is conducted on or adjacent to a public highway,
county road, street, bridge, or other thoroughfare commonly
traveled and when the work interferes with the normal and
established mode of travel on the highway, county road,
street, bridge, or thoroughfare, the location shall be properly
posted by prominently displayed signs or flagmen or both.
Signs used for posting in such an area shall be consistent with
the provisions found in the state of Washington "Manual on
Uniform Traffic Control Devices for Streets and Highways"
obtainable from the department of transportation.
(2) If the construction, repair, or maintenance work
includes or uses grooved pavement, abrupt lane edges, steel
plates, or gravel or earth surfaces, the construction, repair, or
maintenance zone must be posted with signs stating the condition, as required by current law, and in addition, must warn
motorcyclists of the potential hazard. For the purposes of this
subsection, the department shall adopt by rule a uniform sign
or signs for this purpose, including at least the following language, "MOTORCYCLES USE EXTREME CAUTION."
(3) Any contractor, firm, corporation, political subdivision, or other agency performing such work shall comply
with this section.
(4) Each driver of a motor vehicle used in connection
with such construction, repair, or maintenance work shall
obey traffic signs posted for, and flaggers stationed at such
location in the same manner and under the same restrictions
as is required for the driver of any other vehicle.
(5) A violation of or a failure to comply with this section
is a misdemeanor. Each day upon which there is a violation,
or there is a failure to comply, constitutes a separate violation. [2003 c 355 § 1; 2003 c 53 § 258; 1984 c 7 § 202; 1961
c 13 § 47.36.200. Prior: 1957 c 95 § 1.]
47.36.200
(2004 Ed.)
Traffic Control Devices
Reviser's note: This section was amended by 2003 c 53 § 258 and by
2003 c 355 § 1, each without reference to the other. Both amendments are
incorporated in the publication of this section under RCW 1.12.025(2). For
rule of construction, see RCW 1.12.025(1).
Effective date—2003 c 355: "This act takes effect January 1, 2004."
[2003 c 355 § 3.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
Severability—1984 c 7: See note following RCW 47.01.141.
47.36.250
47.36.250 Dangerous road conditions requiring special tires, chains, or traction equipment—Signs or
devices—Penalty. (1) If the department or its delegate determines at any time for any part of the public highway system
that the unsafe conditions of the roadway require particular
tires, tire chains, or traction equipment in addition to or
beyond the ordinary pneumatic rubber tires, the department
may establish the following recommendations or requirements with respect to the use of such equipment for all persons using such public highway:
(a) Traction advisory - oversize vehicles prohibited.
(b) Traction advisory - oversize vehicles prohibited.
Vehicles over 10,000 GVW - chains required.
(c) Traction advisory - oversize vehicles prohibited. All
vehicles - chains required, except all wheel drive.
(2) Any equipment that may be required by this section
shall be approved by the state patrol as authorized under
RCW 46.37.420.
(3) The department shall place and maintain signs and
other traffic control devices on the public highways that indicate the tire, tire chain, or traction equipment recommendation or requirement determined under this section. Such
signs or traffic control devices shall in no event prohibit the
use of studded tires from November 1st to April 1st, but when
the department determines that chains are required and that
no other traction equipment will suffice, the requirement is
applicable to all types of tires including studded tires. The
Washington state patrol or the department may specify different recommendations or requirements for four wheel drive
vehicles in gear.
(4) Failure to obey a requirement indicated under this
section is a traffic infraction under chapter 46.63 RCW subject to a penalty of five hundred dollars including all statutory
assessments. [2003 c 356 § 1; 2003 c 53 § 259; 1987 c 330 §
747; 1984 c 7 § 203; 1975 1st ex.s. c 255 § 1; 1969 ex.s. c 7
§ 2.]
Reviser's note: This section was amended by 2003 c 53 § 259 and by
2003 c 356 § 1, each without reference to the other. Both amendments are
incorporated in the publication of this section under RCW 1.12.025(2). For
rule of construction, see RCW 1.12.025(1).
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
Construction—Application of rules—Severability—1987 c 330: See
notes following RCW 28B.12.050.
Severability—1984 c 7: See note following RCW 47.01.141.
Restrictions as to tire equipment, metal studs: RCW 46.37.420.
47.36.260
47.36.260 Signs indicating proper lane usage. The
department shall erect signs on multilane highways indicating proper lane usage. [1986 c 93 § 6.]
Keep right except when passing, etc: RCW 46.61.100.
(2004 Ed.)
47.36.290
47.36.270
47.36.270 Regional shopping center directional signs.
Regional shopping center directional signs shall be erected
and maintained on state highway right of way if they meet
each of the following criteria:
(1) There shall be at least five hundred thousand square
feet of retail floor space available for lease at the regional
shopping center;
(2) The regional shopping center shall contain at least
three major department stores that are owned by a national or
regional retail chain organization;
(3) The shopping center shall be located within one mile
of the roadway;
(4) The center shall generate at least nine thousand daily
one-way vehicle trips to the center;
(5) There is sufficient space available for installation of
the directional sign as specified in the Manual On Uniform
Traffic Control Devices;
(6) Supplemental follow-through directional signing is
required at key decision points to direct motorists to the shopping center if it is not clearly visible from the point of exit
from the main traveled way.
The department shall collect from the regional shopping
center a reasonable fee based upon the cost of erection and
maintenance of the directional sign. [1987 c 469 § 1.]
47.36.280
47.36.280 Pavement marking standards. The department of transportation shall, by January 1, 1992, adopt minimum pavement marking standards for the area designating
the limits of the vehicle driving lane along the right edge for
arterials that do not have curbs or sidewalks and are inside
urbanized areas. In preparing the standards, the department of
transportation shall take into consideration all types of pavement markings, including flat, raised, and recessed markings,
and their effect on pedestrians, bicycle, and motor vehicle
safety.
The standards shall provide that a jurisdiction shall conform to these requirements, at such time thereafter that it
undertakes to (1) renew or install permanent markings on the
existing or new roadway, and (2) remove existing nonconforming raised pavement markers at the time the jurisdiction
prepares to resurface the roadway, or earlier, at its option.
These standards shall be in effect, as provided in this section,
unless the legislative authority of the local governmental
body finds that special circumstances exist affecting vehicle
and pedestrian safety that warrant a variance to the standard.
For the purposes of this section, "urbanized area" means
an area designated as such by the United States bureau of
census and having a population of more than fifty thousand.
Other jurisdictions that install pavement marking material on
the right edge of the roadway shall do so in a manner not in
conflict with the minimum state standard. [1991 c 214 § 4.]
47.36.290
47.36.290 State park directional signs. Directional
signs for state parks within fifteen miles of an interstate highway shall be erected and maintained on the interstate highway by the department despite the existence of additional
directional signs on primary or scenic system highways in
closer proximity to such state parks. [1985 c 376 § 7. Formerly RCW 47.42.160.]
Legislative intent—1985 c 376: See note following RCW 47.42.020.
[Title 47 RCW—page 127]
47.36.300
Title 47 RCW: Public Highways and Transportation
47.36.300 Supplemental directional signs—Erection
by local governments. (1) The legislative authority of any
county, city, or town may erect, or permit the erection of,
supplemental directional signs directing motorists to motorist
service businesses qualified for motorist information sign
panels pursuant to RCW 47.36.310 or 47.36.320 in any location on, or adjacent to, the right of way of any roads or streets
within their jurisdiction.
(2) Appropriate fees may be charged to cover the cost of
issuing permits, installation, or maintenance of such signs.
(3) Supplemental signs and their locations shall comply
with all applicable provisions of this chapter, the Manual on
Uniform Traffic Control Devices, and such rules as may be
adopted by the department. [1999 c 201 § 2; 1986 c 114 § 3.
Formerly RCW 47.42.052.]
47.36.300
47.36.310 Motorist information signs—Interstate
highways—Contents, placement, fees. The department is
authorized to erect and maintain motorist information sign
panels within the right of way of the interstate highway system to give the traveling public specific information as to gas,
food, lodging, camping, or tourist-oriented business available
on a crossroad at or near an interchange. Motorist information sign panels shall include the words "GAS," "FOOD,"
"LODGING," "CAMPING," or "TOURIST ACTIVITIES"
and directional information and may contain one or more
individual business signs maintained on the panel. Motorist
information sign panels are authorized within the corporate
limits of cities and towns and areas zoned for commercial or
industrial uses at locations where there is adequate distance
between interchanges to ensure compliance with the Manual
on Uniform Traffic Control Devices. The erection and maintenance of motorist information sign panels shall also conform to the Manual on Uniform Traffic Control Devices and
rules adopted by the state department of transportation. A
motorist service or tourist-oriented business located within
one mile of an interstate highway shall not be permitted to
display its name, brand, or trademark on a motorist information sign panel unless its owner has first entered into an
agreement with the department limiting the height of its onpremise signs at the site of its service installation to not more
than fifteen feet higher than the roof of its main building measured to the bottom of the on-premise sign. The restriction for
on-premise signs does not apply if the sign is not visible from
the highway. The department may, on a case-by-case basis,
waive the height restriction when an on-premise sign is visible from the rural interstate system. The department shall
charge reasonable fees for the display of individual business
signs to defray the costs of their installation and maintenance,
and may charge reasonable fees to recover costs for the erection and maintenance of the motorist information sign panels.
[1999 c 201 § 3; 1987 c 469 § 3; 1986 c 114 § 1; 1985 c 142
§ 1; 1984 c 7 § 223; 1974 ex.s. c 80 § 2. Formerly RCW
47.42.046.]
47.36.310
public specific information as to gas, food, lodging, recreation, or tourist-oriented businesses accessible by way of
highways intersecting the noninterstate highway. The motorist information sign panels are permitted only at locations
within the corporate limits of cities and towns and areas
zoned for commercial or industrial uses where there is adequate distance between interchanges to ensure compliance
with the Manual on Uniform Traffic Control Devices. Motorist information sign panels shall include the words "GAS,"
"FOOD," "LODGING," "RECREATION," or "TOURIST
ACTIVITIES" and directional information and may contain
one or more individual business signs maintained on the
panel. The erection and maintenance of motorist information
sign panels along noninterstate highways shall also conform
to the Manual on Uniform Traffic Control Devices and rules
adopted by the state department of transportation. A motorist
service or tourist-oriented business located within one mile of
a noninterstate highway shall not be permitted to display its
name, brand, or trademark on a motorist information sign
panel unless its owner has first entered into an agreement
with the department limiting the height of its on-premise
signs at the site of its service installation to not more than fifteen feet higher than the roof of its main building measured to
the bottom of the on-premise sign.
The department shall adopt rules for the erection and
maintenance of tourist-oriented directional signs with the following restrictions:
(1) Where installed, they shall be placed in advance of
the "GAS," "FOOD," "LODGING," or "RECREATION"
motorist information sign panels previously described in this
section;
(2) Signs shall not be placed to direct a motorist to an
activity visible from the main traveled roadway;
(3) Premises on which the qualified tourist-oriented
business is located must be within fifteen miles of the state
highway except as provided in RCW 47.36.330(3) (b) and
(c), and necessary supplemental signing on local roads must
be provided before the installation of the signs on the state
highway.
The department shall charge reasonable fees for the display of individual business signs to defray the costs of their
installation and maintenance, and may charge reasonable fees
for the erection and maintenance of the motorist information
sign panels. [1999 c 213 § 1; 1999 c 201 § 4; 1986 c 114 § 2;
1985 c 376 § 4; 1985 c 142 § 2; 1984 c 7 § 224; 1974 ex.s. c
80 § 4. Formerly RCW 47.42.047.]
Reviser's note: This section was amended by 1999 c 201 § 4 and by
1999 c 213 § 1, each without reference to the other. Both amendments are
incorporated in the publication of this section under RCW 1.12.025(2). For
rule of construction, see RCW 1.12.025(1).
Legislative intent—1985 c 376: See note following RCW 47.42.020.
Severability—1984 c 7: See note following RCW 47.01.141.
47.36.325
Severability—1984 c 7: See note following RCW 47.01.141.
47.36.320 Motorist information signs, tourist-oriented directional signs—Primary and scenic roads—Contents, placement, fees. The department is authorized to erect
and maintain motorist information sign panels within the
right of way of noninterstate highways to give the traveling
47.36.320
[Title 47 RCW—page 128]
47.36.325 Motorist information signs—Private contractors. (1) When exercising its authority to erect and
maintain motorist information sign panels under RCW
47.36.310 and 47.36.320, the department shall contract with
a private contractor for a term of ten years. The contractor
selected by the department must be incorporated, and must
maintain an office, in this state.
(2004 Ed.)
Roadside Areas—Safety Rest Areas
(2) The contractor, at no cost to the department, is solely
responsible for marketing, administration, financial management, sign fabrication, installation, and maintenance and is
subject to the provisions of this chapter otherwise applicable
to the department. The contractor may set the market rate to
be charged to businesses advertising on the motorist informational [information] signs.
(3) A contract entered into between the department and a
contractor must require the contractor to administer, fabricate, install, and maintain community historical signs authorized for placement by the department at no cost to the
department.
(4) In [The] department may set the contractual terms it
deems necessary to guarantee the performance of the contract. The department shall periodically monitor the performance of the contract.
(5) In letting a contract under this section the department
shall comply with purchasing guidelines adopted by the general services administration. [2002 c 321 § 1.]
47.36.330
47.36.330 Motorist information signs—Maximum
number and distance. (1) Not more than six business signs
may be permitted on motorist information sign panels authorized by RCW 47.36.310 and 47.36.320.
(2) The maximum distance that eligible service facilities
may be located on either side of an interchange or intersection to qualify for a business sign are as follows:
(a) On interstate highways, gas, food, or lodging activities shall be located within three miles. Camping or touristoriented activities shall be within five miles.
(b) On noninterstate highways, gas, food, lodging, recreation, or tourist-oriented activities shall be located within five
miles.
(3)(a) If no eligible services are located within the distance limits prescribed in subsection (2) of this section, the
distance limits shall be increased until an eligible service of a
type being considered is reached, up to a maximum of fifteen
miles.
(b) The department may erect and maintain signs on an
alternate route that is longer than fifteen miles if it is safer and
still provides reasonable and convenient travel to an eligible
service.
(c) The department may erect and maintain signs on a
route up to a maximum of twenty miles if it qualifies as an
eligible service and is within a distressed area under the criteria of chapter 43.165 RCW. [1999 c 213 § 2; 1999 c 201 § 5;
1985 c 142 § 3. Formerly RCW 47.42.0475.]
Reviser's note: This section was amended by 1999 c 201 § 5 and by
1999 c 213 § 2, each without reference to the other. Both amendments are
incorporated in the publication of this section under RCW 1.12.025(2). For
rule of construction, see RCW 1.12.025(1).
47.36.340
47.36.340 Motorist information signs—Lodging. To
be eligible for placement of a business sign on a motorist
information sign panel a lodging activity shall:
(1) Be licensed or approved by the department of social
and health services or county health authority;
(2) Provide adequate sleeping and bathroom accommodations available for rental on a daily basis; and
(3) Provide public telephone facilities. [1999 c 201 § 6;
1985 c 376 § 8. Formerly RCW 47.42.170.]
(2004 Ed.)
47.38.010
Legislative intent—1985 c 376: See note following RCW 47.42.020.
47.36.350
47.36.350 Motorist information signs—Installation
time. The department shall ensure that motorist information
sign panels are installed within nine months of receiving the
request for installation. [1999 c 201 § 7; 1991 c 94 § 5.]
47.36.400
47.36.400 Adopt-a-highway signs. The department
may install adopt-a-highway signs, with the following
restrictions:
(1) Signs shall be designed by the department and may
only include the words "adopt-a-highway litter control facility" or "adopt-a-highway litter control next XX miles" and
the name of the litter control area sponsor. The sponsor's
name shall not be displayed more predominantly than the
remainder of the sign message. Trademarks or business logos
may be displayed;
(2) Signs may be placed along interstate, primary, and
scenic system highways;
(3) Signs may be erected at other state-owned transportation facilities in accordance with RCW 47.40.100(1);
(4) For each litter control area designated by the department, one sign may be placed visible to traffic approaching
from each direction;
(5) Signs shall be located so as not to detract from official traffic control signs installed pursuant to the manual on
uniform traffic control devices adopted by the department;
(6) Signs shall be located so as not to restrict sight distance on approaches to intersections or interchanges;
(7) The department may charge reasonable fees to defray
the cost of manufacture, installation, and maintenance of
adopt-a-highway signs. [1998 c 180 § 1; 1991 c 94 § 4.]
Chapter 47.38 RCW
ROADSIDE AREAS—SAFETY REST AREAS
Chapter 47.38
Sections
47.38.010
47.38.020
47.38.040
47.38.050
47.38.060
Rules governing use and control of rest areas, historic sites,
viewpoints, etc.—Penalties.
Limitations on use of rest areas.
Information centers.
Recreational vehicle sanitary disposal systems.
Dedication of rest areas.
Acquisition of property for safety rest areas, buffers, viewpoints, historic
sites: RCW 47.12.250.
47.38.010
47.38.010 Rules governing use and control of rest
areas, historic sites, viewpoints, etc.—Penalties. (1) Pursuant to chapter 34.05 RCW, the department and the Washington state patrol shall jointly adopt rules governing the conduct and the safety of the traveling public relating to the use
and control of rest areas and other areas as designated in
RCW 47.12.250. Nothing herein may be construed as limiting the powers of the department as provided by law.
(2) Except as otherwise provided in this section, any person violating this section or any rule or regulation adopted
pursuant to this section is guilty of a misdemeanor.
(3)(a) Except as provided in (b) of this subsection, violation of such a rule or regulation relating to traffic including
parking, standing, stopping, and pedestrian offenses is a traffic infraction.
[Title 47 RCW—page 129]
47.38.020
Title 47 RCW: Public Highways and Transportation
(b) Violation of such a rule or regulation equivalent to
those provisions of Title 46 RCW set forth in RCW
46.63.020 remains a misdemeanor. [2003 c 53 § 260; 1993 c
116 § 1; 1984 c 7 § 204; 1967 ex.s. c 145 § 29.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
Severability—1984 c 7: See note following RCW 47.01.141.
Roadside areas—Safety rest areas, provisions of scenic and recreational
highway act concerning: Chapter 47.39 RCW.
47.38.020
47.38.020 Limitations on use of rest areas. Except
where specifically authorized by the department, it is unlawful for any person or persons to stop, stand, or park any vehicle, including but not limited to trailers, campers, and motorcycles, for more than eight hours, or for any person or persons to camp or to maintain a camp, tent, or other sleeping
accommodation or facility, in any rest area or safety rest area
within the limits of the right of way of interstate highways or
other state highways or in other areas of state or interstate
highways as designated in RCW 47.12.250. This section does
not apply to disabled vehicles. [1984 c 7 § 205; 1967 ex.s. c
145 § 30.]
47.38.060 Dedication of rest areas. The transportation
commission may designate interstate safety rest areas, as
appropriate, as locations for memorial signs to prisoners of
war and those missing in action. The commission shall adopt
policies for the placement of memorial signs on interstate
safety rest areas and may disapprove any memorial sign that
it determines to be inappropriate or inconsistent with the policies. The policies shall include, but are not limited to, guidelines for the size and location of and inscriptions on memorial
signs. The secretary shall adopt rules for administering this
program. Nonprofit associations may have their name identified on a memorial sign if the association bears the cost of
supplying and maintaining the memorial sign. [1996 c 172 §
1.]
47.38.060
Chapter 47.39 RCW
SCENIC AND RECREATIONAL HIGHWAY ACT
OF 1967
Chapter 47.39
Sections
47.39.010
47.39.020
47.39.030
Severability—1984 c 7: See note following RCW 47.01.141.
47.39.040
47.38.040
47.38.040 Information centers. In order to provide
information in the specific interest of the traveling public, the
department may establish information centers at safety rest
areas and permit maps, informational directories, and advertising pamphlets to be made available there for the purpose of
informing the public of places of interest within the state and
providing such other information as the department deems
desirable. [1984 c 7 § 206; 1967 ex.s. c 145 § 32.]
47.39.050
47.39.060
47.39.069
47.39.075
47.39.080
47.39.090
47.39.100
47.39.900
47.39.910
System created—Standards.
Designation of portions of existing highways as part of system.
Development and maintenance of system by department of
transportation and parks and recreation commission—Allocation of costs.
Planning and design standards established by department of
community, trade, and economic development.
Planning and design standards—Facilities and factors considered.
Designation of system on maps or other descriptive material.
Designation and removal criteria.
Corridor management plan.
Funding priorities—Signage.
Consultation with other agencies and parties—Identification
of tourist routes.
Removal of designation.
Short title.
Severability—1967 ex.s. c 85.
Severability—1984 c 7: See note following RCW 47.01.141.
47.39.010 System created—Standards. There is
hereby created a scenic and recreational highway system.
Highways in this system shall be developed and maintained
in accordance with general standards for state highways of
comparable classification and usage.
Recognizing that the Transportation Equity Act for the
21st Century establishes a national "scenic byway" program
that could benefit state and local roadways, the Washington
state scenic byway designation program is revised to address
state and local transportation routes. Byways in this program
must be designated and maintained in accordance with the
criteria developed by the department under this chapter.
However, a highway so designated under RCW 47.39.069
does not become part of the scenic and recreational highway
system unless approved by the legislature. [1999 c 218 § 1;
1967 ex.s. c 85 § 1.]
47.39.010
47.38.050
47.38.050 Recreational vehicle sanitary disposal systems. The department of transportation shall construct and
maintain recreational vehicle sanitary disposal systems in the
following safety rest areas lying along highways which are a
part of the interstate highway system:
(1) Gee Creek safety rest area, northbound and southbound on Interstate 5 in Clark county;
(2) Sea-Tac safety rest area, northbound on Interstate 5
in King county;
(3) Silver Lake safety rest area, southbound on Interstate
5 in Snohomish county;
(4) Winchester Wasteway safety rest area, eastbound and
westbound on Interstate 90 in Grant county;
(5) Sprague safety rest area, eastbound on Interstate 90 in
Lincoln county;
(6) Selah Creek safety rest area, northbound and southbound on Interstate 82 in Yakima county;
(7) Indian John Hill safety rest area, eastbound and westbound on Interstate 90 in Kittitas county;
(8) Smokey Point safety rest area, northbound and southbound on Interstate 5 in Snohomish county;
(9) Schrag safety rest area, westbound on Interstate 90 in
Adams county. [1996 c 237 § 3; 1980 c 60 § 1.]
Effective date—1980 c 60: "This act shall take effect July 1, 1980."
[1980 c 60 § 4.]
[Title 47 RCW—page 130]
Effective date—1999 c 218: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[May 7, 1999]." [1999 c 218 § 9.]
47.39.020 Designation of portions of existing highways as part of system. The following portions of highways
are designated as part of the scenic and recreational highway
system:
(1) State route number 2, beginning at the crossing of
Woods creek at the east city limits of Monroe, thence in an
47.39.020
(2004 Ed.)
Scenic and Recreational Highway Act of 1967
easterly direction by way of Stevens pass to a junction with
state route number 97 in the vicinity of Peshastin; also
Beginning at the junction with state route number 17, in
the vicinity of Coulee City, thence easterly to the junction
with state route number 155;
(2) State route number 3, beginning at a junction with
state route number 101 in the vicinity of Shelton, thence
northeasterly and northerly to a junction with state route
number 104 in the vicinity of Port Gamble;
(3) State route number 4, beginning at the junction with
state route number 101, thence easterly through Cathlamet to
Coal Creek road, approximately .5 miles west of the Longview city limits;
(4) State route number 6, beginning at the junction with
state route number 101 in Raymond, thence easterly to the
junction with state route number 5, in the vicinity of Chehalis;
(5) State route number 7, beginning at the junction with
state route number 12 in Morton, thence northerly to the junction with state route number 507;
(6) State route number 8, beginning at a junction with
state route number 12 in the vicinity of Elma, thence easterly
to a junction with state route number 101 near Tumwater;
(7) State route number 9, beginning at the junction with
state route number 530 in Arlington, thence northerly to the
end of the route at the Canadian border;
(8) State route number 10, beginning at Teanaway junction, thence easterly to a junction with state route number 97
west of Ellensburg;
(9) State route number 11, beginning at the junction with
state route number 5 in the vicinity of Burlington, thence in a
northerly direction to the junction with state route number 5;
(10) State route number 12, beginning at a junction with
a county road approximately 2.8 miles west of the crossing of
the Wynoochee river which is approximately 1.2 miles west
of Montesano, thence in an easterly direction to a junction
with state route number 8 in the vicinity of Elma; also
Beginning at a junction with state route number 5, thence
easterly by way of Morton, Randle, and Packwood to the
junction with state route number 410, approximately 3.5
miles west of Naches; also
Beginning at the junction with state route number 124 in
the vicinity of the Tri-Cities, thence easterly through Wallula
and Touchet to a junction with a county road approximately
2.4 miles west of a junction with state route number 129 at
Clarkston;
(11) State route number 14, beginning at the crossing of
Gibbons creek approximately 0.9 miles east of Washougal,
thence easterly along the north bank of the Columbia river to
a point in the vicinity of Plymouth;
(12) State route number 17, beginning at a junction with
state route number 395 in the vicinity of Mesa, thence northerly to the junction with state route number 97 in the vicinity
of Brewster;
(13) State route number 19, the Chimacum-Beaver Valley road, beginning at the junction with state route number
104, thence northerly to the junction with state route number
20;
(14) State route number 20, beginning at the junction
with state route number 101 to the ferry zone in Port
Townsend; also
(2004 Ed.)
47.39.020
Beginning at the Keystone ferry slip on Whidbey Island,
thence northerly and easterly to a junction with state route
number 153 southeast of Twisp; also
Beginning at the junction of state route number 97 in the
vicinity of Okanogan, thence westerly across the Okanogan
river to the junction with state route number 215; also
Beginning at a junction with state route number 97 near
Tonasket, thence easterly and southerly to a junction with
state route number 2 at Newport;
(15) State route number 25, beginning at the Spokane
river bridge, thence northerly through Cedonia, Gifford, Kettle Falls, and Northport, to the Canadian border;
(16) State route number 26, beginning at the Whitman
county boundary line, thence easterly by way of the vicinities
of La Crosse and Dusty to a junction with state route number
195 in the vicinity of Colfax;
(17) State route number 27, beginning at a junction with
state route number 195 in the vicinity of Pullman, thence
northerly by way of the vicinities of Palouse and Garfield to
a junction with state route number 271 in the vicinity of
Oakesdale; also
From a junction with state route number 271 at Oakesdale, thence northerly to the vicinity of Tekoa;
(18) State route number 31, beginning at the junction
with state route number 20 in Tiger, thence northerly to the
Canadian border;
(19) State route number 82, beginning at the junction
with state route number 395 south of the Tri-Cities area,
thence southerly to the end of the route at the Oregon border;
(20) State route number 90, beginning at the junction
with East Sunset Way in the vicinity east of Issaquah, thence
easterly to Thorp road 9.0 miles west of Ellensburg;
(21) State route number 97, beginning at the Oregon border, in a northerly direction through Toppenish and Wapato
to the junction with state route number 82 at Union Gap; also
Beginning at the junction with state route number 10, 2.5
miles north of Ellensburg, in a northerly direction to the junction with state route number 2, 4.0 miles east of Leavenworth; also
Beginning at the junction of state route number 153 in
the vicinity south of Pateros, thence northerly by way of the
vicinities of Brewster, Okanogan, Omak, Riverside, Tonasket, and Oroville to the international boundary line;
(22) State route number 97 alternate, beginning at the
junction with state route number 2 in the vicinity of Monitor,
thence northerly to the junction with state route number 97,
approximately 5.0 miles north of Chelan;
(23) State route number 101, beginning at the AstoriaMegler bridge, thence north to Fowler street in Raymond;
also
Beginning at a junction with state route number 109 in
the vicinity of Queets, thence in a northerly, northeasterly,
and easterly direction by way of Forks to the junction with
state route number 5 in the vicinity of Olympia;
(24) State route number 104, beginning at a junction with
state route number 101 in the vicinity south of Discovery bay,
thence in a southeasterly direction to the Kingston ferry
crossing;
(25) State route number 105, beginning at a junction with
state route number 101 at Raymond, thence westerly and
[Title 47 RCW—page 131]
47.39.020
Title 47 RCW: Public Highways and Transportation
northerly by way of Tokeland and North Cove to the shore of
Grays Harbor north of Westport; also
Beginning at a junction with state route number 105 in
the vicinity south of Westport, thence northeasterly to a junction with state route number 101 at Aberdeen;
(26) State route number 109, beginning at a junction with
state route number 101 in Hoquiam to a junction with state
route number 101 in the vicinity of Queets;
(27) State route number 112, beginning at the easterly
boundary of the Makah Indian reservation, thence in an easterly direction to the vicinity of Laird's corner on state route
number 101;
(28) State route number 116, beginning at the junction
with the Chimacum-Beaver Valley road, thence in an easterly
direction to Fort Flagler State Park;
(29) State route number 119, beginning at the junction
with state route number 101 at Hoodsport, thence northwesterly to the Mount Rose development intersection;
(30) State route number 122, Harmony road, between the
junction with state route number 12 near Mayfield dam and
the junction with state route number 12 in Mossyrock;
(31) State route number 123, beginning at the junction
with state route number 12 in the vicinity of Morton, thence
northerly to the junction with state route number 410;
(32) State route number 129, beginning at the Oregon
border, thence northerly to the junction with state route number 12 in Clarkston;
(33) State route number 141, beginning at the junction
with state route number 14 in Bingen, thence northerly to the
end of the route at the Skamania county line;
(34) State route number 142, beginning at the junction
with state route number 14 in Lyle, thence northeasterly to
the junction with state route number 97, .5 miles from Goldendale;
(35) State route number 153, beginning at a junction with
state route number 97 in the vicinity of Pateros, thence in a
northerly direction to a junction with state route number 20 in
the vicinity south of Twisp;
(36) State route number 155, beginning at a junction with
state route number 2 in the vicinity north of Coulee City,
thence northerly and westerly to the junction with state route
number 215;
(37) State route number 194, beginning at the Port of
Almota to the junction with state route number 195 in the
vicinity of Pullman;
(38) State route number 195, beginning at the Washington-Idaho boundary line southeast of Uniontown, thence
northwesterly and northerly by way of the vicinity of Colton,
Pullman, Colfax, Steptoe, and Rosalia to the Whitman county
boundary line;
(39) State route number 202, beginning at the junction
with state route number 522, thence in an easterly direction to
the junction with state route number 90 in the vicinity of
North Bend;
(40) State route number 211, beginning at the junction
with state route number 2, thence northerly to the junction
with state route number 20 in the vicinity of Usk;
(41) State route number 215, beginning at the junction of
state route number 20 in the vicinity of Okanogan, thence
northeasterly on the west side of the Okanogan river to a
junction with state route number 97 north of Omak;
[Title 47 RCW—page 132]
(42) State route number 231, beginning at the junction
with state route number 23, in the vicinity of Sprague, thence
in a northerly direction to the junction with state route number 2, approximately 2.5 miles west of Reardan;
(43) State route number 261, beginning at the junction
with state route number 12 in the vicinity of Delaney, thence
northwesterly to the junction with state route number 260;
(44) State route number 262, beginning at the junction
with state route number 26, thence northeasterly to the junction with state route number 17 between Moses Lake and
Othello;
(45) State route number 271, beginning at a junction with
state route number 27 in the vicinity of Oakesdale, thence
northwesterly to a junction with state route number 195 in the
vicinity south of Rosalia;
(46) State route number 272, beginning at the junction
with state route number 195 in Colfax, thence easterly to the
Idaho state line, approximately 1.5 miles east of Palouse;
(47) State route number 305, beginning at the Winslow
ferry dock to the junction with state route number 3 approximately 1.0 mile north of Poulsbo;
(48) State route number 395, beginning at the north end
of the crossing of Mill creek in the vicinity of Colville, thence
in a northwesterly direction to a junction with state route
number 20 at the west end of the crossing over the Columbia
river at Kettle Falls;
(49) State route number 401, beginning at a junction with
state route number 101 at Point Ellice, thence easterly and
northerly to a junction with state route number 4 in the vicinity north of Naselle;
(50) State route number 410, beginning 4.0 miles east of
Enumclaw, thence in an easterly direction to the junction
with state route number 12, approximately 3.5 miles west of
Naches;
(51) State route number 501, beginning at the junction
with state route number 5 in the vicinity of Vancouver,
thence northwesterly on the New Lower River road around
Vancouver Lake;
(52) State route number 503, beginning at the junction
with state route number 500, thence northerly by way of Battle Ground and Yale to the junction with state route number 5
in the vicinity of Woodland;
(53) State route number 504, beginning at a junction with
state route number 5 at Castle Rock, to the end of the route on
Johnston Ridge, approximately milepost 52;
(54) State route number 505, beginning at the junction
with state route number 504, thence northwesterly by way of
Toledo to the junction with state route number 5;
(55) State route number 508, beginning at the junction
with state route number 5, thence in an easterly direction to
the junction with state route number 7 in Morton;
(56) State route number 525, beginning at the ferry toll
booth on Whidbey Island to a junction with state route number 20 east of the Keystone ferry slip;
(57) State route number 542, beginning at the junction
with state route number 5, thence easterly to the vicinity of
Austin pass in Whatcom county;
(58) State route number 547, beginning at the junction
with state route number 542 in Kendall, thence northwesterly
to the junction with state route number 9 in the vicinity of the
Canadian border;
(2004 Ed.)
Scenic and Recreational Highway Act of 1967
(59) State route number 706, beginning at the junction
with state route number 7 in Elbe, in an easterly direction to
the end of the route at Mt. Rainier National Park;
(60) State route number 821, beginning at a junction with
state route number 82 at the Yakima firing center interchange, thence in a northerly direction to a junction with state
route number 82 at the Thrall road interchange;
(61) State route number 971, Navarre Coulee road,
between the junction with state route number 97 and the junction with South Lakeshore road. [2003 c 55 § 1; 1993 c 430
§ 7; 1992 c 26 § 2; 1991 c 342 § 54; 1990 c 240 § 3; 1975 c
63 § 8; 1973 1st ex.s. c 151 § 10; 1971 ex.s. c 73 § 29; 1970
ex.s. c 51 § 177; 1969 ex.s. c 281 § 6; 1967 ex.s. c 85 § 2.]
Effective dates—1991 c 342: See note following RCW 47.26.167.
Legislative finding—1990 c 240: "The legislature finds that scenic and
recreational highways are designated because of a need to develop management plans that will protect and preserve the scenic and recreational
resources from loss through inappropriate development. Protection of scenic
and recreational resources includes managing land use outside normal highway rights of way. The legislature recognizes that scenic and recreational
highways are typically located in areas that are natural in character, along
watercourses or through mountainous areas, or in areas with a view of such
scenery." [1990 c 240 § 1.]
47.39.030
47.39.030 Development and maintenance of system
by department of transportation and parks and recreation commission—Allocation of costs. (1) The department
shall pay from motor vehicle funds appropriated for construction of state highways, the following costs of developing and
constructing scenic and recreational highways: (a) Acquisition of the right of way necessary for state highway purposes;
(b) construction of the portion of the highway designed primarily for motor vehicle travel; (c) exit and entrance roadways providing access to scenic observation points; (d) safety
rest areas; (e) roadside landscaping within the portion of the
highway right of way acquired by the department for state
highway purposes; (f) the uniform signs and markers designating the various features and facilities of the scenic and recreational highways; and (g) any additional costs of constructing and developing the scenic and recreational highways,
including property acquisition adjacent to highways as authorized by RCW 47.12.250, for which the department shall
receive reimbursement from the federal government or any
other source.
(2) The parks and recreation commission shall pay the
costs of developing and constructing the scenic and recreational highways not provided for in subsection (1) of this
section from any funds appropriated for such purposes.
(3) The costs of maintaining the scenic and recreational
highway system shall be allocated between the department
and the parks and recreation commission in the same manner
that costs of developing and constructing such highways are
allocated in subsections (1) and (2) of this section.
(4) The city, town, county, regional transportation planning organization, federal agency, federally recognized tribe,
or any other such party that nominates a roadway not located
on a state-owned right of way for designation as a scenic
byway shall bear all costs relating to the nomination and designation of the byway, such as costs for developing, maintaining, planning, designing, and constructing the scenic
byway. [1999 c 218 § 2; 1984 c 7 § 207; 1967 ex.s. c 85 § 3.]
Effective date—1999 c 218: See note following RCW 47.39.010.
(2004 Ed.)
47.39.050
Severability—1984 c 7: See note following RCW 47.01.141.
Safety rest areas: Chapter 47.38 RCW.
47.39.040
47.39.040 Planning and design standards established
by department of community, trade, and economic development. The establishment of planning and design standards
for items provided for in RCW 47.39.050 shall be coordinated by the department of community, trade, and economic
development. The department of transportation, parks and
recreation commission, and any other departments or commissions whose interests are affected shall prepare, submit,
and file with the department of community, trade, and economic development standards relating to the scenic and recreational highway system. If varying planning and design
standards are filed, the department of community, trade, and
economic development shall consult with the submitting
agencies on the merits of the several proposals and, based
upon such consultation, establish a set of standards. Pursuant
to the planning and design standards so established, the
department of transportation and the parks and recreation
commission shall develop the highways and areas adjacent
thereto to accomplish the purposes of this chapter, but the
department shall retain exclusive authority over the highway
right of way.
Responsibility for construction and maintenance is
hereby established between the department and the parks and
recreation commission with the department responsible for
activities financed with funds provided for under RCW
47.39.030(1) and the parks and recreation commission
responsible for activities financed from other sources of
funds. By mutual consent, responsibility for development
and/ or maintenance may be transferred between the two
agencies. [1995 c 399 § 122; 1985 c 6 § 16; 1984 c 7 § 208;
1967 ex.s. c 85 § 4.]
Severability—1984 c 7: See note following RCW 47.01.141.
Department of community, trade, and economic development: Chapter
43.330 RCW.
47.39.050
47.39.050 Planning and design standards—Facilities
and factors considered. Planning and design standards
established for highways falling within the scenic and recreational highways system may include, but shall not be limited
to, provision for the following:
(1) Hiking, bicycle, and bridle trails, including regulations for their use;
(2) Campsites and shelters;
(3) Boat launching sites;
(4) Access trails to lakes, rivers and streams, and easements along their shores;
(5) Safety rest areas;
(6) Historic and geologic interpretative facilities;
(7) Scenic observation facilities;
(8) Roadside landscaping, restoration and aesthetic
enhancement;
(9) Specifically delineated highway corridors and means
for the preservation of natural beauty, historic sites, or viewpoints;
(10) A uniform system of signs and markers designating
the various features and facilities of the scenic and recreational highway systems. [1967 ex.s. c 85 § 5.]
[Title 47 RCW—page 133]
47.39.060
Title 47 RCW: Public Highways and Transportation
47.39.060
47.39.060 Designation of system on maps or other
descriptive material. The department and the parks and recreation commission may include, where appropriate, on any
maps, or in any relevant descriptive material they may prepare at state expense, references to those portions of highways designated in RCW 47.39.020, and may include those
designated byways by appropriate color or code designation.
[1999 c 218 § 3; 1984 c 7 § 209; 1967 ex.s. c 85 § 6.]
Effective date—1999 c 218: See note following RCW 47.39.010.
Severability—1984 c 7: See note following RCW 47.01.141.
47.39.069
47.39.069 Designation and removal criteria. (1) The
department, in consultation with the department of community, trade, and economic development, the department of
natural resources, the parks and recreation commission,
affected cities, towns, and counties, federally recognized
tribes, regional transportation planning organizations, Washington-based automobile clubs, statewide bicycling organizations, and other interested parties, shall develop by December
31, 1999, criteria for assessing scenic byways and heritage
tour routes and an appropriate method of nomination and
application for the designation and removal of the designation of the byways. Factors the department may take into consideration, but is not limited by, are: (a) Scenic quality of the
byway; (b) natural aspects, such as geological formations,
water bodies, vegetation, and wildlife; (c) historic elements;
(d) cultural features such as the arts, crafts, music, customs,
or traditions of a distinct group of people; (e) archaeological
features; (f) recreational activities; (g) roadway safety including accommodations for bicycle and pedestrian travel, tour
buses, and automobiles; (h) scenic byway and local and
regional byway management plans; and (i) local public
involvement and support for the byway.
(2) The criteria developed in subsection (1) of this section must not impose nor require regulation of privately
owned lands or property rights.
(3) Any person may nominate a roadway, path, or trail
for inclusion in the scenic byway program. The department
shall assess nominations in accordance with the criteria
developed under subsection (1) of this section. The department shall submit its recommendations for scenic byway and
heritage tour route designations to the commission for its
approval and official designation of the roadway, path, or
trail as a scenic byway or a heritage tour route. All decisions
made by the commission relating to scenic byway and heritage tour route designations are final.
(4) The department shall apply the criteria in subsection
(1) of this section to state highways that are currently not a
part of the designated scenic and recreational highway system. The department shall respond to local requests for route
evaluation as defined in subsection (3) of this section.
(5) Once the commission has designated a roadway as a
scenic byway, the department may submit an individual nomination to the Federal Highway Administration for its consideration of whether the roadway qualifies to be designated as
a national scenic byway or an All-American Roadway. [1999
c 218 § 4.]
Effective date—1999 c 218: See note following RCW 47.39.010.
[Title 47 RCW—page 134]
47.39.075
47.39.075 Corridor management plan. The department shall participate with local communities to develop a
corridor management plan for a state highway nominated to
be part of the scenic byway program. Local, regional, or other
governmental bodies shall develop a corridor management
plan for nominated routes that are under their jurisdiction.
[1999 c 218 § 5.]
Effective date—1999 c 218: See note following RCW 47.39.010.
47.39.080
47.39.080 Funding priorities—Signage. Recognizing
that the Transportation Equity Act for the 21st Century establishes a national "Scenic Byways" grant program and a new
apportionment program called "Transportation Enhancement
Activities," the department of transportation shall place high
priority on obtaining funds from those sources for further
development of a scenic and recreational highways program,
including enhancement projects on the designated scenic and
recreational highway system. The department shall consider
the use of the designated system by bicyclists and pedestrians
in connection with nonmotorized routes in the state trail plan,
and the state bicycle plan which are also eligible for TEA-21
funding. Appropriate signage may be used at intersections of
nonmotorized and motorized systems to demonstrate the
access, location, and the interconnectivity of various modes
of travel for transportation and recreation. For the purposes of
leveraging national scenic byway planning grant funds, the
commission may designate eligible state highways as scenic
byways on an interim basis. [1999 c 218 § 6; 1993 c 430 § 8.]
Effective date—1999 c 218: See note following RCW 47.39.010.
47.39.090
47.39.090 Consultation with other agencies and parties—Identification of tourist routes. In developing the
scenic and recreational highways program, the department
shall consult with the department of community, trade, and
economic development, the department of natural resources,
the parks and recreation commission, affected cities, towns,
and counties, regional transportation planning organizations,
statewide bicycling organizations, and other interested parties. The scenic and recreational highways program may
identify entire highway loops or similar tourist routes that
could be developed to promote tourist activity and provide
concurrent economic growth while protecting the scenic and
recreational quality surrounding state highways. [1995 c 399
§ 123; 1993 c 430 § 9.]
47.39.100
47.39.100 Removal of designation. (1) The commission may remove the designation of a route if it no longer
possesses the intrinsic qualities or fails to meet the criteria
that supported its designation.
(2) The department shall determine whether a roadway
designated as a national scenic byway or an All-American
Roadway is being properly maintained in accordance with
the roadway's byway management plan, including preserving
the intrinsic qualities that originally supported the designation. When the department determines that the intrinsic qualities of a national scenic byway or All-American Roadway
have not been maintained sufficiently to retain its designation, the department shall notify the party responsible for
maintaining the designation of the finding and allow the party
an opportunity, under federal regulations, for corrective
(2004 Ed.)
Roadside Improvement and Beautification
action before formal removal of the designation of the roadway.
(3) Local, regional, or other governmental bodies may
notify the commission of the removal of a designated route if
they determine it no longer meets the designation criteria, or
community support for the designation no longer exists, or it
no longer possesses the intrinsic qualities that supported its
original designation.
(4) State or local removal of a designated route will
result in discontinued state support of the designated route
and can include, but is not limited to, state matching assistance for grant applications, the removal of signs directly
related to the byway, free promotional information in the
state-owned safety rest areas, and inclusion in maps, brochures, and electronic media. [1999 c 218 § 7.]
Effective date—1999 c 218: See note following RCW 47.39.010.
47.39.900
47.39.900 Short title. RCW 47.39.010 through
47.39.910 shall constitute a new chapter in Title 47 RCW and
shall be known and may be cited as the "Scenic and Recreational Highway Act of 1967." [1967 ex.s. c 85 § 7.]
47.39.910
47.39.910 Severability—1967 ex.s. c 85. If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not
affected. [1967 ex.s. c 85 § 8.]
47.40.050
correction of unsightly conditions upon the right of way of
any state highway, and for roadside development and beautification, the department is empowered to expend such funds,
either independently or in conjunction with the funds of any
county, political subdivision, or any person, firm, corporation, association, or organization. [1984 c 7 § 210; 1961 c 13
§ 47.40.020. Prior: 1937 c 53 § 89; RRS § 6400-89.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.40.030
47.40.030 Permit to private persons. Any person,
firm, corporation, association, or organization owning lands
abutting upon any state highway and desiring to plant, cultivate, and grow any hedge, shade trees, or ornamental trees or
shrubs along the right of way thereof, or to clear and cultivate
a portion of the state highway right of way for the purpose of
growing crops and destroying noxious weeds, or any person,
firm, corporation, association, or organization interested in
public improvement and desiring to improve and beautify
any state highway right of way or any portion thereof by
planting, cultivating, or growing any hedge or shade or ornamental trees or cultivate along or upon the right of way
thereof, may upon application to the department, be granted a
permit therefor as provided by law. [1984 c 7 § 211; 1961 c
13 § 47.40.030. Prior: 1937 c 53 § 90; RRS § 6400-90; prior:
1927 c 242 § 1; RRS § 6437-1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.40.040
Chapter 47.40
Chapter 47.40 RCW
ROADSIDE IMPROVEMENT
AND BEAUTIFICATION
Sections
47.40.010
47.40.020
47.40.030
47.40.040
47.40.050
47.40.060
47.40.070
47.40.080
47.40.090
47.40.100
47.40.105
Improvement and beautification a highway purpose.
Use of funds authorized.
Permit to private persons.
Application for permit, contents.
Survey—Report—Permit.
Agreement to maintain project.
Damaging project unlawful.
Penalty for destroying native flora on state lands, highways,
parks.
Glass bottles along highways—Collection and removal.
State adopt-a-highway program.
Local adopt-a-highway programs.
City streets, parkways, boulevards, etc.: Title 35 RCW.
State parks and recreation commission may plant trees along highway:
RCW 79A.05.030.
Withdrawal of public lands abutting highway: RCW 79A.05.105.
47.40.010
47.40.010 Improvement and beautification a highway purpose. The planting and cultivating of any shrubs,
trees, hedges or other domestic or native ornamental growth,
the improvement of roadside facilities and view points, and
the correction of unsightly conditions, upon the right of way
of any state highway is hereby declared to be a proper state
highway purpose. [1961 c 13 § 47.40.010. Prior: 1937 c 53
§ 88; RRS § 6400-88.]
47.40.020
47.40.020 Use of funds authorized. Whenever funds
are available for the planting or cultivation of any shrubs,
trees, hedges, or other domestic or native ornamental growth,
the improvement of roadside facilities and view points, the
(2004 Ed.)
47.40.040 Application for permit, contents. Each
application for a permit to plant, cultivate and grow any
hedge, shade or ornamental trees or shrubbery along or upon
the right of way of any state highway or improve such right of
way shall be in writing, signed by the applicant, and shall
describe the state highway or portion thereof along or upon
the right of way of which permit to plant, cultivate, grow or
improve is sought, by name, number, or other reasonable
description, and the lands bordering thereon by governmental
subdivisions, and shall state the names, places or residence
and post office addresses of the applicant or applicants owning the land abutting upon such state highway or the name of
the person, firm, corporation, association or organization
applying for the permit and the names of its officers and their
places of residence and their post office addresses, and shall
state definitely the purpose for which the permit is sought,
giving a description of the kind of hedge, or variety of shrubbery or trees desired to be planted or the kinds of crops to be
grown, or improvement to be made, with a diagram illustrating the location and number of hedges, trees or shrubs or the
area of cultivation desired or plans of the improvement proposed to be made. [1961 c 13 § 47.40.040. Prior: 1937 c 53
§ 91; RRS § 6400-91; prior: 1927 c 242 § 2; RRS § 6437-2.]
47.40.050
47.40.050 Survey—Report—Permit. Upon the filing
of such application, the department shall cause a survey of
the state highway to be made with reference to the application
and a report of the findings and recommendations as to the
granting of the permit, and if it appears to the satisfaction of
the department that the use of a portion of the state highway
for the purpose set out in the application will not interfere
with the use of the state highway for public travel and will
beautify and improve the state highway, a permit may be
[Title 47 RCW—page 135]
47.40.060
Title 47 RCW: Public Highways and Transportation
granted and issued to the applicant to plant, cultivate, and
grow any hedge, shade or ornamental trees, shrubbery, or
crops, or make such improvement along or upon the right of
way of such portion of the state highway as is definitely
described in the permit, and to construct and maintain such
temporary and substantial fence on and along the portion of
the right of way of the state highway described in the permit
as is specified in the permit. The permit shall specify the
exact location of all hedges, shade or ornamental trees, or
shrubbery to be planted and grown, or the area to be cultivated under the permit, or the area to be improved to which
specified location the person, firm, corporation, association,
or organization receiving the permit shall specifically conform. The department may in its discretion refuse to issue the
permit, and any such permit that is granted is revocable at the
will of the department and nothing in this title may be construed as in anywise affecting the title of the state to the lands
included in the state highway, or the right to use the lands for
state highway purposes, or to remove or destroy any of such
hedges, trees, shrubbery, or crops for the purpose of construction, alteration, repair, improvement, or maintenance of the
state highway, or for any other purpose and at any time.
[1984 c 7 § 212; 1961 c 13 § 47.40.050. Prior: 1937 c 53 §
92; RRS § 6400-92; prior: 1927 c 242 § 3, part; RRS § 6437,
part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.40.060
47.40.060 Agreement to maintain project. If any such
permit is granted, the department shall enter into an agreement with the person, firm, corporation, association, or organization agreeing that such roadside development or beautification shall be maintained and kept up by the state through
the department or by the person, firm, corporation, association, or organization. If any such person, firm, corporation,
association, or organization so agreeing fails or neglects to
maintain the roadside development or beautification, the
department is empowered to do so, and the expense thereof
shall be a charge against the person, firm, corporation, association, or organization. [1984 c 7 § 213; 1961 c 13 §
47.40.060. Prior: 1937 c 53 § 93; RRS § 6400-93; prior:
1927 c 242 § 3, part; RRS § 6437-3, part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.40.070
47.40.070 Damaging project unlawful. It is unlawful
for any person to injure, destroy, or remove any hedge, shade
or ornamental trees, shrubbery, or crops, planted, cultivated,
and grown or improvement made upon or along any portion
of any state highway under permit from the department or
otherwise, or to injure, destroy, or remove any fence erected
under any such permit or otherwise. However, nothing in this
section may be construed to prevent any person with the
department to do so or the officers of the state charged with
the duty of constructing and maintaining any such state highway, from removing any hedges, trees, shrubbery, or crops
planted or improvements or fences built under permit, where
in their judgment they interfere with or are detrimental to, the
use of the state highway for public travel, or such removal is
necessary for the construction, alteration, repair, improvement, or maintenance of the state highway. [1984 c 7 § 214;
[Title 47 RCW—page 136]
1961 c 13 § 47.40.070. Prior: 1937 c 53 § 94; RRS § 640094; prior: 1927 c 242 § 4; RRS § 6437-4.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.40.080
47.40.080 Penalty for destroying native flora on state
lands, highways, parks. Any person who shall break or cut
from any lands owned by the state of Washington or shall cut
down, remove, destroy or uproot any rhododendron, evergreen, huckleberry, native dogwood or any other native tree,
shrub, fern, herb, bulb or wild plants, or any part thereof,
within three hundred feet of the center line of any state or
county road, or who shall cut down, remove or destroy any
flowering or ornamental tree or shrub, or any native flowering plant, fern, herb or bulb, either perennial or annual, situate, growing or being on any public street or highway, state or
city park, in the state of Washington, unless such person be
engaged in the work of constructing or repairing such highway or street under authority and direction of the legally constituted public officials being charged by law with the duty of
constructing or repairing such highways or streets, state or
city parks, shall be guilty of a misdemeanor. [1961 c 13 §
47.40.080. Prior: 1933 c 133 § 1; 1925 ex.s. c 59 § 1; RRS §
2787-1.]
47.40.090
47.40.090 Glass bottles along highways—Collection
and removal. The department and any other governmental
subdivision shall, with the staff, equipment, and material
under their control, or by contract with others, take all necessary actions to collect and remove any or all glass bottles or
glass containers along the right of way of any public road or
public highway. [1984 c 7 § 215; 1969 ex.s. c 281 § 48.]
Severability—1984 c 7: See note following RCW 47.01.141.
Deposit of unwholesome substance: RCW 9.66.050.
Removal of glass after accident: RCW 46.61.645.
Throwing glass on highway: RCW 46.61.645, 70.93.060.
47.40.100
47.40.100 State adopt-a-highway program. (1) The
department of transportation shall establish a statewide
adopt-a-highway program. The purpose of the program is to
provide volunteers and businesses an opportunity to contribute to a cleaner environment, enhanced roadsides, and protection of wildlife habitats. Participating volunteers and businesses shall adopt department-designated sections of state
highways, rest areas, park and ride lots, intermodal facilities,
and any other facilities the department deems appropriate, in
accordance with rules adopted by the department. The department may elect to coordinate a consortium of participants for
adopt-a-highway projects.
The adopt-a-highway program shall include, at a minimum, litter control for the adopted section, and may include
additional responsibilities such as planting and maintaining
vegetation, controlling weeds, graffiti removal, and any other
roadside improvement or clean-up activities the department
deems appropriate. The department shall not accept adopt-ahighway proposals that would have the effect of terminating
classified employees or classified employee positions.
(2) A volunteer group or business choosing to participate
in the adopt-a-highway program must submit a proposal to
the department. The department shall review the proposal for
(2004 Ed.)
Junkyards Adjacent to Interstate and Primary Highways
consistency with departmental policy and rules. The department may accept, reject, or modify an applicant's proposal.
(3) The department shall seek partnerships with volunteer groups and businesses to facilitate the goals of this section. The department may solicit funding for the adopt-ahighway program that allows private entities to undertake all
or a portion of financing for the initiatives. The department
shall develop guidelines regarding the cash, labor, and inkind contributions to be performed by the participants.
(4) An organization whose name: (a) Endorses or
opposes a particular candidate for public office, (b) advocates
a position on a specific political issue, initiative, referendum,
or piece of legislation, or (c) includes a reference to a political
party shall not be eligible to participate in the adopt-a-highway program.
(5) In administering the adopt-a-highway program, the
department shall:
(a) Provide a standardized application form, registration
form, and contractual agreement for all participating groups.
The forms shall notify the prospective participants of the
risks and responsibilities to be assumed by the department
and the participants;
(b) Require all participants to be at least fifteen years of
age;
(c) Require parental consent for all minors;
(d) Require at least one adult supervisor for every eight
minors;
(e) Require one designated leader for each participating
organization, unless the department chooses to coordinate a
consortium of participants;
(f) Assign each participating organization a section or
sections of state highway, or other state-owned transportation
facilities, for a specified period of time;
(g) Recognize the efforts of a participating organization
by erecting and maintaining signs with the organization's
name on both ends of the organization's section of highway;
(h) Provide appropriate safety equipment. Safety equipment issued to participating groups must be returned to the
department upon termination of the applicable adopt-a-highway agreement;
(i) Provide safety training for all participants;
(j) Pay any and all premiums or assessments required
under RCW 51.12.035 to secure medical aid benefits under
chapter 51.36 RCW for all volunteers participating in the program;
(k) Require participating businesses to pay all employer
premiums or assessments required to secure medical aid benefits under chapter 51.36 RCW for all employees or agents
participating in the program;
(l) Maintain records of all injuries and accidents that
occur;
(m) Adopt rules that establish a process to resolve any
question of an organization's eligibility to participate in the
adopt-a-highway program;
(n) Obtain permission from property owners who lease
right of way before allowing an organization to adopt a section of highway on such leased property; and
(o) Establish procedures and guidelines for the adopt-ahighway program.
(6) Nothing in this section affects the rights or activities
of, or agreements with, adjacent landowners, including the
(2004 Ed.)
47.41.020
use of rights of way and crossings, nor impairs these rights
and uses by the placement of signs. [1995 c 106 § 1; 1990 c
258 § 5.]
Legislative findings and intent—1990 c 258: "The legislature finds
that despite the efforts of the department of transportation, the department of
ecology, and the ecology youth corps to pick up litter along state highways,
roadside litter in Washington state has increased by thirty-six percent since
1983. The legislature further finds that in twenty-seven states, volunteer
organizations are able to give of their time and energy, demonstrate commitment to a clean environment, and discourage would-be litterers by keeping
sections of highway litter free because those states have established programs to encourage and recognize such voluntary efforts. Therefore, it is the
legislature's intent to establish an "adopt-a-highway" litter control program
as a partnership between citizen volunteers and the state to reduce roadside
litter and build civic pride in a litter-free Washington." [1990 c 258 § 4.]
47.40.105 Local adopt-a-highway programs. Local
government legislative authorities may enact local "adopt-ahighway sign" programs which are not inconsistent with state
or federal law. [1990 c 258 § 3.]
47.40.105
Legislative findings and intent—1990 c 258: See note following
RCW 47.40.100.
Chapter 47.41 RCW
JUNKYARDS ADJACENT TO INTERSTATE AND
PRIMARY HIGHWAYS
Chapter 47.41
Sections
47.41.010
47.41.020
47.41.030
47.41.040
47.41.050
47.41.060
47.41.070
47.41.080
47.41.900
Legislative declaration—Purpose.
Definitions.
Junkyards adjacent to highways prohibited—Exceptions.
Screening or removal of junkyard.
Administrative rules—Review of action.
Other laws not affected.
Violations—Penalty—Abatement as public nuisance.
Agreements with United States secretary of transportation.
Severability—1971 ex.s. c 101.
Vehicle wreckers: Chapter 46.80 RCW.
47.41.010 Legislative declaration—Purpose. For the
purpose of promoting the public safety, health, welfare, convenience, and enjoyment of public travel, to protect the public investment in public highways, and to preserve and
enhance the scenic beauty of lands bordering public highways, it is hereby declared to be in the public interest to regulate and restrict the establishment, operation, and maintenance of junkyards in areas adjacent to the interstate and federal-aid primary systems within this state. The legislature
hereby finds and declares that junkyards which do not conform to the requirements of this chapter are public nuisances.
[1971 ex.s. c 101 § 1.]
47.41.010
47.41.020 Definitions. The definitions set forth in this
section apply throughout this chapter.
(1) "Junk" means old or scrap copper, brass, rope, rags,
batteries, paper, trash, rubber debris, waste, or junked, dismantled, or wrecked automobiles, or parts thereof, iron, steel,
and other old or scrap ferrous or nonferrous material.
(2) "Automobile graveyard" means any establishment or
place of business that is maintained, used, or operated by
storing, keeping, buying, or selling wrecked, scrapped,
ruined, or dismantled motor vehicles or motor vehicle parts.
(3) "Junkyard" means an establishment or place of business that is maintained, operated, or used for storing, keeping, buying, or selling junk or for the maintenance or opera47.41.020
[Title 47 RCW—page 137]
47.41.030
Title 47 RCW: Public Highways and Transportation
tion of an automobile graveyard, and the term includes garbage dumps and sanitary fills.
(4) "Interstate system" means that portion of the national
system of interstate and defense highways located within this
state, as officially designated or as may hereafter be so designated by the department and approved by the United States
secretary of transportation under Title 23 United States Code.
(5) "Federal-aid primary system" means that portion of
connected main highways as officially designated or as may
hereafter be so designated by the department and approved by
the United States secretary of transportation as the federal-aid
primary system pursuant to the provisions of Title 23 United
States Code.
(6) "Department" means the Washington state department of transportation. [1984 c 7 § 216; 1971 ex.s. c 101 §
2.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.41.030
47.41.030 Junkyards adjacent to highways prohibited—Exceptions. No person may establish, operate, or
maintain a junkyard any portion of which is within one thousand feet of the nearest edge of the right of way of any interstate or federal-aid primary highway, except the following:
(1) Those which are screened by natural objects, plantings, fences, or other appropriate means so as not to be visible
from the main-traveled way of the system or otherwise
removed from sight;
(2) Those located within areas which are zoned for
industrial use under authority of law;
(3) Those located within unzoned industrial areas, which
areas shall be determined from actual land uses and defined
by rules adopted by the department and approved by the
United States secretary of transportation; and
(4) Those which are not visible from the main-traveled
way of the system. [1984 c 7 § 217; 1971 ex.s. c 101 § 3.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.41.040
47.41.040 Screening or removal of junkyard. Before
July 1, 1971, the department shall determine whether or not
the topography of the land adjoining the highway will permit
adequate screening of any junkyard lawfully in existence
located outside of a zoned industrial area or an unzoned
industrial area as defined under RCW 47.41.030 on August 9,
1971, that is within one thousand feet of the nearest edge of
the right of way and visible from the main traveled way of
any highway on the interstate and primary system and
whether screening of the junkyard would be economically
feasible. Within thirty days thereafter the department shall
notify by certified mail the record owner of the land upon
which the junkyard is located, or the operator thereof, of its
determination.
If it is economically feasible to screen the junkyard, the
department shall screen the junkyard so that it will not be visible from the main-traveled way of the highway. The department is authorized to acquire by gift, purchase, exchange, or
condemnation such lands or interest in lands as may be
required for these purposes.
If it is not economically feasible to screen the junkyard,
the department shall acquire by purchase, gift, or condemnation an interest in the real property used for junkyard pur[Title 47 RCW—page 138]
poses that is visible from the main traveled way of the highway, restricting any owner of the remaining interest to use of
the real estate for purposes other than a junkyard. In addition
to compensation for the real property interest, the operator of
a junkyard shall receive the actual reasonable expenses in
moving his business personal property to a location within
the same general area where a junkyard may be lawfully
established, operated, and maintained. This section shall be
interpreted as being in addition to all other rights and remedies of a junkyard owner or operator and shall not be interpreted as a limitation on or alteration of the law of compensation in eminent domain. [1984 c 7 § 218; 1971 ex.s. c 101 §
4.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.41.050
47.41.050 Administrative rules—Review of action.
The department shall adopt rules for the administration of
this chapter consistent with the policy of this chapter and the
national policy set forth in 23 U.S.C. Sec. 136, and the regulations promulgated thereunder by the United States secretary
of transportation. Proceedings for review of any action taken
by the department pursuant to this chapter shall be instituted
by filing a petition only in the superior court of Thurston
county. [1984 c 7 § 219; 1971 ex.s. c 101 § 5.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.41.060
47.41.060 Other laws not affected. Nothing in this
chapter shall be construed to permit a person to maintain any
junkyard that is otherwise prohibited by statute or by the resolution or ordinance of any county, city, or town, nor to abrogate or affect the lawful provisions of any statute, ordinance,
regulation, or resolution which are more restrictive than the
provisions of this chapter. [1971 ex.s. c 101 § 6.]
47.41.070
47.41.070 Violations—Penalty—Abatement as public nuisance. (1) If the owner of the land upon which any
such junkyard is located, or the operator thereof, as the case
may be, fails to comply with the notice or remove any such
junk within the time provided in this chapter after being so
notified, he or she is guilty of a misdemeanor. In addition to
the penalties imposed by law upon conviction, an order may
be entered compelling compliance with this chapter. Each
day the junkyard is maintained in a manner so as not to comply with this chapter constitutes a separate offense.
(2) If the operator of the junkyard or the owner of the
property upon which it is located, as the case may be, is not
found or refuses receipt of the notice, the department, the
chief of the Washington state patrol, the county sheriff, or the
chief of police of any city or town shall post the property
upon which it is located with a notice that the junkyard constitutes a public nuisance and that the junk thereon must be
removed as provided in this chapter. If the notice is not complied with, the department, the chief of the Washington state
patrol, the county sheriff, or the chief of police of any city or
town shall abate the nuisance and remove the junk, and for
that purpose may enter upon private property without incurring liability for doing so. [2003 c 53 § 261; 1984 c 7 § 220;
1971 ex.s. c 101 § 7.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
(2004 Ed.)
Highway Advertising Control Act—Scenic Vistas Act
Severability—1984 c 7: See note following RCW 47.01.141.
47.41.080
47.41.080 Agreements with United States secretary
of transportation. The department is authorized to enter
into agreements with the United States secretary of transportation as provided in Title 23 United States Code, relating to
the control of junkyards in areas adjacent to the interstate and
primary systems, and to take action in the name of the state to
comply with the terms of the agreement. [1984 c 7 § 221;
1971 ex.s. c 101 § 8.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.41.900 Severability—1971 ex.s. c 101. If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not
affected. [1971 ex.s. c 101 § 9.]
47.41.900
Chapter 47.42 RCW
HIGHWAY ADVERTISING CONTROL ACT—
SCENIC VISTAS ACT
Chapter 47.42
Sections
47.42.010
47.42.020
47.42.025
47.42.030
47.42.040
47.42.045
47.42.048
47.42.050
47.42.055
47.42.060
47.42.062
47.42.063
47.42.065
47.42.070
47.42.080
47.42.090
47.42.100
47.42.102
47.42.103
47.42.104
47.42.105
47.42.107
47.42.110
47.42.120
47.42.130
47.42.140
47.42.900
47.42.901
47.42.902
47.42.910
47.42.911
47.42.920
47.42.010
Declaration of purpose.
Definitions.
Exclusions from scenic system.
Signs visible from interstate, primary, or scenic systems
restricted.
Permissible signs classified.
Number of signs—Spacing—Tourist facility, business or agricultural signs.
State and local prohibitions.
Information signs by governmental units.
Roadside area information panels or displays.
Rules for signs visible from interstate and scenic systems—
Judicial review.
Signs visible from primary system in commercial and industrial areas—Requirements, restrictions, and prohibitions.
Signs visible from primary system in commercial and industrial areas—Preexisting signs—Permissible signs—Spacing.
Signs viewable from other highways or streets—Requirements.
State and local prohibitions.
Public nuisance—Abatement—Penalty.
Revocation of permit.
Preexisting signs—Moratorium.
Compensation for removal of signs—Authorized—Applicability.
Compensation for removal—Action determining amount—
Payment—State's share.
Compensation for removal—Federal share—Acceptance.
Unavailability of federal share.
Compensation for removal under local authority.
Agreements for federal aid.
Permits—Fees—Renewal—Permissible acts—Revocation.
Permit identification number.
Scenic areas designated.
Severability—1961 c 96.
Severability—1963 ex.s. c 3.
Severability—1971 ex.s. c 62.
Short title—1961 c 96.
Short title—1971 ex.s. c 62.
Federal requirements—Conflict and accord.
47.42.010 Declaration of purpose. The control of
signs in areas adjacent to state highways of this state is
hereby declared to be necessary to promote the public health,
safety, welfare, convenience and enjoyment of public travel,
to protect the public investment in the interstate system and
other state highways, and to attract visitors to this state by
conserving the natural beauty of areas adjacent to the inter(2004 Ed.)
47.42.020
state system, and of scenic areas adjacent to state highways
upon which they travel in great numbers, and to insure that
information in the specific interest of the traveling public is
presented safely and effectively. [1961 c 96 § 1.]
47.42.020 Definitions. The definitions set forth in this
section apply throughout this chapter.
(1) "Department" means the Washington state department of transportation.
(2) "Erect" means to construct, build, raise, assemble,
place, affix, attach, create, paint, draw, or in any other way
bring into being or establish.
(3) "Interstate system" means any state highway which is
or does become part of the national system of interstate and
defense highways as described in section 103(d) of title 23,
United States Code.
(4) "Maintain" means to allow to exist.
(5) "Person" means this state or any public or private corporation, firm, partnership, association, as well as any individual or individuals.
(6) "Primary system" means any state highway which is
or does become part of the federal-aid primary system as
described in section 103(b) of title 23, United States Code.
(7) "Scenic system" means (a) any state highway within
any public park, federal forest area, public beach, public recreation area, or national monument, (b) any state highway or
portion thereof outside the boundaries of any incorporated
city or town designated by the legislature as a part of the scenic system, or (c) any state highway or portion thereof outside the boundaries of any incorporated city or town designated by the legislature as a part of the scenic and recreational
highway system except for the sections of highways specifically excluded in RCW 47.42.025 or located within areas
zoned by the governing county for predominantly commercial and industrial uses, and having development visible to
the highway, as determined by the department.
(8) "Sign" means any outdoor sign, display, device, figure, painting, drawing, message, placard, poster, billboard, or
other thing that is designed, intended, or used to advertise or
inform, any part of the advertising or informative contents of
which is visible from any place on the main-traveled way of
the interstate system or other state highway.
(9) "Commercial and industrial areas" means any area
zoned commercial or industrial by a county or municipal
code, or if unzoned or zoned for general uses by a county or
municipal code, that area occupied by three or more separate
and distinct commercial or industrial activities, or any combination thereof, within a space of five hundred feet and the
area within five hundred feet of such activities on both sides
of the highway. The area shall be measured from the outer
edges of the regularly used buildings, parking lots, or storage
or processing areas of the commercial or industrial activity
and not from the property lines of the parcels upon which the
activities are located. Measurements shall be along or parallel
to the edge of the main traveled way of the highway. The following shall not be considered commercial or industrial
activities:
(a) Agricultural, forestry, grazing, farming, and related
activities, including, but not limited to, wayside fresh produce stands;
(b) Transient or temporary activities;
47.42.020
[Title 47 RCW—page 139]
47.42.025
Title 47 RCW: Public Highways and Transportation
(c) Railroad tracks and minor sidings;
(d) Signs;
(e) Activities more than six hundred and sixty feet from
the nearest edge of the right of way;
(f) Activities conducted in a building principally used as
a residence.
If any commercial or industrial activity that has been used in
defining or delineating an unzoned area ceases to operate for
a period of six continuous months, any signs located within
the former unzoned area become nonconforming and shall
not be maintained by any person.
(10) "Roadside area information panel or display" means
a panel or display located so as not to be readable from the
main traveled way, erected in a safety rest area, scenic overlook, or similar roadside area, for providing motorists with
information in the specific interest of the traveling public.
(11) "Temporary agricultural directional sign" means a
sign on private property adjacent to state highway right of
way to provide directional information to places of business
offering for sale seasonal agricultural products on the property where the sale is taking place. [1993 c 430 § 10; 1991 c
94 § 1; 1990 c 258 § 1; 1987 c 469 § 2; 1985 c 376 § 2; 1984
c 7 § 222; 1977 ex.s. c 258 § 1; 1974 ex.s. c 80 § 1; 1971 ex.s.
c 62 § 1; 1961 c 96 § 2.]
Legislative findings and intent—1990 c 258: See note following
RCW 47.40.100.
Legislative intent—1985 c 376: "It is the intent of the legislature that
state highway information and directional signs provide appropriate guidance to all motorists traveling throughout the state. Such guidance should
include the identity, location, and types of recreational, cultural, educational,
entertainment, or unique or unusual commercial activities whose principle
source of visitation is derived from motorists not residing in the immediate
locale of the activity. Such informational and directional signs shall comply
with Title 23, United States Code and the rules adopted by the department
under RCW 47.42.060." [1985 c 376 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.42.025
47.42.025 Exclusions from scenic system. The following sections of the scenic and recreational highway system
are excluded from the scenic system as defined in subsection
(7) of RCW 47.42.020:
(1) Beginning on state route number 101 at the junction
with Airport Road north of Shelton, thence north to a point
two thousand feet north of Airport Road.
(2) Beginning on state route number 101 at the junction
with Mill Creek Road south of Forks, thence north two and
four-tenths miles to the Calawah River bridge.
(3) Beginning on state route number 105 at a point onehalf mile southwest of the boundary of Aberdeen, thence
northeast to the boundary of Aberdeen.
(4) Beginning on state route number 17 at a point ninetenths of a mile west of Grape Drive in the vicinity of Moses
Lake, thence easterly to a junction of Grape Drive.
(5) Beginning on state route number 12 at a point onehalf mile south of the south boundary of Dayton, thence
northerly to the south boundary of Dayton.
(6) Beginning on state route number 14 one-half mile
west of the west boundary of Bingen, thence east to a point
one-half mile east of the east boundary of Bingen. [1971
ex.s. c 62 § 2.]
[Title 47 RCW—page 140]
47.42.030
47.42.030 Signs visible from interstate, primary, or
scenic systems restricted. Except as permitted under this
chapter, no person shall erect or maintain a sign which is visible from the main traveled way of the interstate system, the
primary system, or the scenic system. In case a highway or a
section of highway is both a part of the primary system and
the scenic system, only those signs permitted along the scenic
system shall be erected or maintained. [1971 ex.s. c 62 § 3;
1961 c 96 § 3.]
47.42.040
47.42.040 Permissible signs classified. It is declared to
be the policy of the state that no signs which are visible from
the main traveled way of the interstate system, primary system, or scenic system shall be erected or maintained except
the following types:
(1) Directional or other official signs or notices that are
required or authorized by law including signs with the Crime
Stoppers name, logo, and telephone number;
(2) Signs advertising the sale or lease of the property
upon which they are located;
(3) Signs advertising activities conducted on the property on which they are located;
(4) Signs, not inconsistent with the policy of this chapter
and the national policy set forth in section 131 of title 23,
United States Code as codified and enacted by Public Law
85-767 and amended only by section 106, Public Law
86-342, and the national standards promulgated thereunder
by the secretary of commerce or the secretary of transportation, advertising activities being conducted at a location
within twelve miles of the point at which such signs are
located: PROVIDED, That no sign lawfully erected pursuant
to this subsection adjacent to the interstate system and outside commercial and industrial areas shall be maintained by
any person after three years from May 10, 1971;
(5) Signs, not inconsistent with the policy of this chapter
and the national policy set forth in section 131 of title 23,
United States Code as codified and enacted by Public Law
85-767 and amended only by section 106, Public Law
86-342, and the regulations promulgated thereunder by the
secretary of commerce or the secretary of transportation,
designed to give information in the specific interest of the
traveling public: PROVIDED, That no sign lawfully erected
pursuant to this subsection adjacent to the interstate system
and outside commercial and industrial areas shall be maintained by any person after three years from May 10, 1971;
(6) Signs lawfully in existence on October 22, 1965,
determined by the commission, subject to the approval of the
United States secretary of transportation, to be landmark
signs, including signs on farm structures or natural surfaces,
of historic or artistic significance the preservation of which
would be consistent with the purposes of chapter 47.42
RCW;
(7) Public service signs, located on school bus stop shelters, which:
(a) Identify the donor, sponsor, or contributor of said
shelters;
(b) Contain safety slogans or messages which occupy not
less than sixty percent of the area of the sign;
(c) Contain no other message;
(d) Are located on school bus shelters which are authorized or approved by city, county, or state law, regulation, or
(2004 Ed.)
Highway Advertising Control Act—Scenic Vistas Act
ordinance, and at places approved by the city, county, or state
agency controlling the highway involved; and
(e) Do not exceed thirty-two square feet in area. Not
more than one sign on each shelter may face in any one direction.
Subsection (7) of this section notwithstanding, the
department of transportation shall adopt regulations relating
to the appearance of school bus shelters, the placement, size,
and public service content of public service signs located
thereon, and the prominence of the identification of the
donors, sponsors, or contributors of the shelters;
(8) Temporary agricultural directional signs, with the
following restrictions:
(a) Signs shall be posted only during the period of time
the seasonal agricultural product is being sold;
(b) Signs shall not be placed adjacent to the interstate
highway system unless the sign qualifies as an on-premise
sign;
(c) Signs shall not be placed within an incorporated city
or town;
(d) Premises on which the seasonal agricultural products
are sold must be within fifteen miles of the state highway, and
necessary supplemental signing on local roads must be provided before the installation of the signs on the state highway;
(e) Signs must be located so as not to restrict sight distances on approaches to intersections;
(f) The department shall establish a permit system and
fee schedule and rules for the manufacturing, installation, and
maintenance of these signs in accordance with the policy of
this chapter;
(g) Signs in violation of these provisions shall be
removed in accordance with the procedures in RCW
47.42.080;
Only signs of types 1, 2, 3, 7, and 8 may be erected or
maintained within view of the scenic system. Signs of types 7
and 8 may also be erected or maintained within view of the
federal aid primary system. [2001 c 107 § 1; 1991 c 94 § 2;
1990 c 258 § 2; 1985 c 376 § 3; 1979 c 69 § 1; 1975 1st ex.s.
c 271 § 1; 1971 ex.s. c 62 § 4; 1961 c 96 § 4.]
Legislative findings and intent—1990 c 258: See note following
RCW 47.40.100.
Legislative intent—1985 c 376: See note following RCW 47.42.020.
47.42.045 Number of signs—Spacing—Tourist facility, business or agricultural signs. (1) Not more than one
type 3 sign visible to traffic proceeding in any one direction
on an interstate system, primary system outside an incorporated city or town or commercial or industrial area, or scenic
system highway may be permitted more than fifty feet from
the advertised activity;
(2) A type 3 sign, other than one along any portion of the
primary system within an incorporated city or town or within
any commercial or industrial area, permitted more than fifty
feet from the advertised activity pursuant to subsection (1) of
this section shall not be erected or maintained a greater distance from the advertised activity than one of the following
options selected by the owner of the business being advertised:
(a) One hundred fifty feet measured along the edge of the
protected highway from the main entrance to the activity
advertised (when applicable);
47.42.045
(2004 Ed.)
47.42.060
(b) One hundred fifty feet from the main building of the
advertised activity; or
(c) Fifty feet from a regularly used parking lot maintained by and contiguous to the advertised activity.
(3) In addition to signs permitted by subsections (1) and
(2) of this section, the commission may adopt regulations
permitting one type 3 sign visible to traffic proceeding in any
one direction on an interstate, primary or scenic system highway on premises which, on June 25, 1976, are used wholly or
in part as an operating business, farm, ranch or orchard which
sign bears only the name of the business, farm, ranch or
orchard and a directional arrow or short directional message.
Regulations adopted under this subsection shall prohibit the
erection or maintenance of such type 3 signs on narrow strips
of land a substantial distance from but connected with a business, farm, ranch or orchard. Signs permitted under this subsection shall not exceed fifty square feet in area.
(4) The commission with advice from the parks and recreation commission shall adopt specifications for a uniform
system of official tourist facility directional signs to be used
on the scenic system highways. Official directional signs
shall be posted by the commission to inform motorists of
types of tourist and recreational facilities available off the
scenic system which are accessible by way of public or private roads intersecting scenic system highways. [1975-'76
2nd ex.s. c 55 § 2; 1974 ex.s. c 154 § 1; 1974 ex.s. c 138 § 1;
1971 ex.s. c 62 § 5.]
47.42.048
47.42.048 State and local prohibitions. Nothing in
this chapter shall be construed to permit a person to erect or
maintain a sign that is otherwise prohibited by statute or by
the resolution or ordinance of any county, city or town of the
state of Washington. [1974 ex.s. c 80 § 3.]
47.42.050
47.42.050 Information signs by governmental units.
Information signs may be erected and maintained by the
state, any county, city, or town. [1961 c 96 § 5.]
47.42.055
47.42.055 Roadside area information panels or displays. The department is authorized to erect roadside area
information panels or displays adjacent to the state highway
system within this state. The department may contract with
private persons for the erection and operation of the information panels or displays. Compensation to the contractors shall
be derived solely from the reasonable fees that the contractors
will be permitted to charge participating businesses for making and exhibiting business signs and displays and for rendering services to tourists. [1985 c 376 § 5; 1984 c 7 § 225; 1977
ex.s. c 258 § 2.]
Legislative intent—1985 c 376: See note following RCW 47.42.020.
Severability—1984 c 7: See note following RCW 47.01.141.
47.42.060
47.42.060 Rules for signs visible from interstate and
scenic systems—Judicial review. The department shall
adopt rules for the erection and maintenance of signs that are
visible from the main traveled way of the interstate system
and the scenic system and that are permitted by this chapter
and other rules for the administration of this chapter consistent with the policy of this chapter and the national policy set
forth in section 131, title 23, United States Code as codified
[Title 47 RCW—page 141]
47.42.062
Title 47 RCW: Public Highways and Transportation
and enacted by Public Law 85-767 and amended only by section 106, Public Law 86-342 and the regulations promulgated
thereunder by the secretary of commerce or the secretary of
transportation. Proceedings for review of any action taken by
the department pursuant to this chapter shall be instituted by
filing a petition only in the superior court of Thurston county.
[1984 c 7 § 226; 1971 ex.s. c 62 § 6; 1961 c 96 § 6.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.42.062
47.42.062 Signs visible from primary system in commercial and industrial areas—Requirements, restrictions, and prohibitions. Signs within six hundred and sixty
feet of the nearest edge of the right of way which are visible
from the main traveled way of the primary system within
commercial and industrial areas and whose size, lighting, and
spacing are consistent with the customary use of property for
the effective display of outdoor advertising as set forth in this
section may be erected and maintained: PROVIDED, That
this section shall not serve to restrict type 3 signs located
along any portion of the primary system within an incorporated city or town or within any commercial or industrial
area.
(1) General: Signs shall not be erected or maintained
which (a) imitate or resemble any official traffic sign, signal,
or device; (b) are erected or maintained upon trees or painted
or drawn upon rocks or other natural features and which are
structurally unsafe or in disrepair; or (c) have any visible
moving parts.
(2) Size of signs:
(a) The maximum area for any one sign shall be six hundred seventy-two square feet with a maximum height of
twenty-five feet and maximum length of fifty feet inclusive
of any border and trim but excluding the base or apron, supports and other structural members: PROVIDED, That cutouts and extensions may add up to twenty percent of additional sign area.
(b) For the purposes of this subsection, double-faced,
back-to-back, or V-type signs shall be considered as two
signs.
(c) Signs which exceed three hundred twenty-five square
feet in area may not be double-faced (abutting and facing the
same direction).
(3) Spacing of signs:
(a) Signs may not be located in such a manner as to
obscure, or otherwise physically interfere with the effectiveness of an official traffic sign, signal, or device, obstruct or
physically interfere with the driver's view of approaching,
merging, or intersecting traffic.
(b) On limited access highways established pursuant to
chapter 47.52 RCW no two signs shall be spaced less than
one thousand feet apart, and no sign may be located within
three thousand feet of the center of an interchange, a safety
rest area, or information center, or within one thousand feet
of an intersection at grade. Double-faced signs shall be prohibited. Not more than a total of five sign structures shall be
permitted on both sides of the highway per mile.
(c) On noncontrolled access highways inside the boundaries of incorporated cities and towns not more than a total of
four sign structures on both sides of the highway within a
space of six hundred sixty feet shall be permitted with a min[Title 47 RCW—page 142]
imum of one hundred feet between sign structures. In no
event, however, shall more than four sign structures be permitted between platted intersecting streets or highways. On
noncontrolled access highways outside the boundaries of
incorporated cities and towns minimum spacing between sign
structures on each side of the highway shall be five hundred
feet.
(d) For the purposes of this subsection, a back-to-back
sign and a V-type sign shall be considered one sign structure.
(e) Official signs, and signs advertising activities conducted on the property on which they are located shall not be
considered in determining compliance with the above spacing requirements. The minimum space between structures
shall be measured along the nearest edge of the pavement
between points directly opposite the signs along each side of
the highway and shall apply to signs located on the same side
of the highway.
(4) Lighting: Signs may be illuminated, subject to the
following restrictions:
(a) Signs which contain, include, or are illuminated by
any flashing, intermittent, or moving light or lights are prohibited, except those giving public service information such
as time, date, temperature, weather, or similar information.
(b) Signs which are not effectively shielded as to prevent
beams or rays of light from being directed at any portion of
the traveled ways of the highway and which are of such intensity or brilliance as to cause glare or to impair the vision of
the driver of any motor vehicle, or which otherwise interfere
with any driver's operation of a motor vehicle are prohibited.
(c) No sign shall be so illuminated that it interferes with
the effectiveness of, or obscures an official traffic sign,
device, or signal.
(d) All such lighting shall be subject to any other provisions relating to lighting of signs presently applicable to all
highways under the jurisdiction of the state. [1975 1st ex.s. c
271 § 3; 1974 ex.s. c 154 § 2; 1974 ex.s. c 138 § 2; 1971 ex.s.
c 62 § 7.]
47.42.063
47.42.063 Signs visible from primary system in commercial and industrial areas—Preexisting signs—Permissible signs—Spacing. (1) Signs within six hundred and sixty
feet of the nearest edge of the right of way lawfully erected
and maintained which are visible from the main traveled way
of the primary system within commercial and industrial areas
on June 1, 1971 shall be permitted to remain and be maintained.
(2) Signs within six hundred and sixty feet of the nearest
edge of the right of way which are visible from the main traveled way of the primary system within commercial and
industrial areas whose size, lighting, and spacing are consistent with customary use as set forth in RCW 47.42.062 may
be erected and maintained. Signs lawfully erected and maintained on June 1, 1971 shall be included in the determination
of spacing requirements for additional signs. [1975 1st ex.s.
c 271 § 4; 1971 ex.s. c 62 § 8.]
47.42.065
47.42.065 Signs viewable from other highways or
streets—Requirements. Notwithstanding any other provision of chapter 47.42 RCW, signs may be erected and maintained more than six hundred and sixty feet from the nearest
(2004 Ed.)
Highway Advertising Control Act—Scenic Vistas Act
edge of the right of way which are visible from the main traveled way of the interstate system, primary system, or scenic
system when designed and oriented to be viewed from highways or streets other than the interstate system, primary system, or the scenic system and the advertising or informative
contents of which may not be clearly comprehended by
motorists using the main traveled way of the interstate system, primary system or scenic system. [1975 1st ex.s. c 271
§ 5; 1971 ex.s. c 62 § 9.]
47.42.070
47.42.070 State and local prohibitions. Nothing in
this chapter shall be construed to permit a person to erect or
maintain any sign that is otherwise prohibited by statute or by
the resolution or ordinance of any county, city, or town of the
state of Washington. [1961 c 96 § 7.]
47.42.080
47.42.080 Public nuisance—Abatement—Penalty.
(1) Any sign erected or maintained contrary to the provisions
of this chapter or rules adopted hereunder that is designed to
be viewed from the interstate system, the primary system, or
the scenic system is a public nuisance, and the department,
the chief of the Washington state patrol, the county sheriff, or
the chief of police of any city or town shall notify the permittee or, if there is no permittee, the owner of the property on
which the sign is located, by certified mail at his last known
address, that it constitutes a public nuisance and must comply
with the chapter or be removed.
(2) If the permittee or owner, as the case may be, fails to
comply with the chapter or remove any such sign within fifteen days after being notified to remove the sign he is guilty
of a misdemeanor. In addition to the penalties imposed by
law upon conviction, an order may be entered compelling
removal of the sign. Each day the sign is maintained constitutes a separate offense.
(3) If the permittee or the owner of the property upon
which it is located, as the case may be, is not found or refuses
receipt of the notice, the department, the chief of the Washington state patrol, the county sheriff, or the chief of police of
any city or town shall post the sign and property upon which
it is located with a notice that the sign constitutes a public
nuisance and must be removed. If the sign is not removed
within fifteen days after such posting, the department, the
chief of the Washington state patrol, the county sheriff, or the
chief of police of any city or town shall abate the nuisance
and destroy the sign, and for that purpose may enter upon private property without incurring liability for doing so.
(4) Nothing in this section may be construed to affect the
provisions contained in RCW 47.42.102 requiring the payment of compensation upon the removal of any signs compensable under state law.
(5) Any sign erected or maintained on state highway
right of way contrary to this chapter or rules adopted under it
is a public nuisance, and the department is authorized to
remove any such sign without notice. [1985 c 376 § 6; 1984
c 7 § 227; 1975-'76 2nd ex.s. c 55 § 1; 1971 ex.s. c 62 § 10;
1961 c 96 § 8.]
Legislative intent—1985 c 376: See note following RCW 47.42.020.
Severability—1984 c 7: See note following RCW 47.01.141.
(2004 Ed.)
47.42.102
47.42.090 Revocation of permit. If any person is convicted of a violation of this chapter, or any rule adopted hereunder, the department may revoke any permit issued to that
person under this chapter. [1984 c 7 § 228; 1961 c 96 § 9.]
47.42.090
Severability—1984 c 7: See note following RCW 47.01.141.
47.42.100 Preexisting signs—Moratorium. (1) No
sign lawfully erected in a protected area as defined by section
2, chapter 96, Laws of 1961 (before the amendment thereof),
prior to March 11, 1961, within a commercial or industrial
zone within the boundaries of any city or town, as such
boundaries existed on September 21, 1959, wherein the use
of real property adjacent to the interstate system is subject to
municipal regulation or control but which does not comply
with the provisions of this chapter or any regulations promulgated hereunder, shall be maintained by any person after
March 11, 1965.
(2) No sign lawfully erected in a protected area as
defined by section 2, chapter 96, Laws of 1961 (before the
amendment thereof), prior to March 11, 1961, other than
within a commercial or industrial zone within the boundaries
of a city or town as such boundaries existed on September 21,
1959, wherein the use of real property adjacent to the interstate system is subject to municipal regulation or control but
which does not comply with the provisions of this chapter or
any regulations promulgated hereunder, shall be maintained
by any person after three years from March 11, 1961.
(3) No sign lawfully erected in a scenic area as defined
by section 2, chapter 96, Laws of 1961 (before the amendment thereof), prior to the effective date of the designation of
such area as a scenic area shall be maintained by any person
after three years from the effective date of the designation of
any such area as a scenic area.
(4) No sign visible from the main traveled way of the
interstate system, the primary system (other than type 3 signs
along any portion of the primary system within an incorporated city or town or within a commercial or industrial area),
or the scenic system which was there lawfully maintained
immediately prior to May 10, 1971, but which does not comply with the provisions of chapter 47.42 RCW as now or
hereafter amended, shall be maintained by any person (a)
after three years from May 10, 1971, or (b) with respect to
any highway hereafter designated by the legislature as a part
of the scenic system, after three years from the effective date
of the designation. Signs located in areas zoned by the governing county for predominantly commercial or industrial
uses, that do not have development visible to the highway, as
determined by the department, and that were lawfully
installed after May 10, 1971, visible to any highway now or
hereafter designated by the legislature as part of the scenic
system, shall be allowed to be maintained. [1993 c 430 § 11;
1974 ex.s. c 154 § 3; 1974 ex.s. c 138 § 3; 1971 ex.s. c 62 §
11; 1963 ex.s. c 3 § 55; 1961 c 96 § 10.]
47.42.100
47.42.102 Compensation for removal of signs—
Authorized—Applicability. (1) Except as otherwise provided in subsection (3) of this section, just compensation
shall be paid upon the removal of any sign (pursuant to the
provisions of chapter 47.42 RCW), lawfully erected under
state law, which is visible from the main traveled way of the
interstate system or the primary system.
47.42.102
[Title 47 RCW—page 143]
47.42.103
Title 47 RCW: Public Highways and Transportation
(2) Such compensation shall be paid for the following:
(a) The taking from the owner of such sign, display, or
device of all right, title, leasehold, and interest in such sign,
display, or device; and
(b) The taking from the owner of the real property on
which the sign, display, or device is located, of the right to
erect and maintain such signs, displays, and devices thereon.
(3) In no event, however, shall compensation be paid for
the taking or removal of signs adjacent to the interstate system and the scenic system which became subject to removal
pursuant to chapter 96, Laws of 1961 as amended by section
55, chapter 3, Laws of 1963 ex. sess. prior to May 10, 1971.
[1975 1st ex.s. c 271 § 2; 1971 ex.s. c 62 § 12.]
47.42.103
47.42.103 Compensation for removal—Action determining amount—Payment—State's share. (1) Compensation as required by RCW 47.42.102 shall be paid to the person or persons entitled thereto for the removal of such signs.
If no agreement is reached on the amount of compensation to
be paid, the department may institute an action by summons
and complaint in the superior court for the county in which
the sign is located to obtain a determination of the compensation to be paid. If the owner of the sign is unknown and cannot be ascertained after diligent efforts to do so, the department may remove the sign upon the payment of compensation only to the owner of the real property on which the sign
is located. Thereafter the owner of the sign may file an action
at any time within one year after the removal of the sign to
obtain a determination of the amount of compensation he
should receive for the loss of the sign. If either the owner of
the sign or the owner of the real property on which the sign is
located cannot be found within the state, service of the summons and complaint on such person for the purpose of obtaining a determination of the amount of compensation to be paid
may be by publication in the manner provided by RCW
4.28.100.
(2) If compensation is determined by judicial proceedings, the sum so determined shall be paid into the registry of
the court to be disbursed upon removal of the sign by its
owner or by the owner of the real property on which the sign
is located. If the amount of compensation is agreed upon, the
department may pay the agreed sum into escrow to be
released upon the removal of the sign by its owner or the
owner of the real property on which the sign is located.
(3) The state's share of compensation shall be paid from
the motor vehicle fund, or if a court having jurisdiction enters
a final judgment declaring that motor vehicle funds may not
be used, then from the general fund. [1984 c 7 § 229; 1971
ex.s. c 62 § 13.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.42.104
47.42.104 Compensation for removal—Federal
share—Acceptance. The department may accept any allotment of funds by the United States, or any agency thereof,
appropriated to carry out the purposes of section 131 of title
23, United States Code, as now or hereafter amended. The
department shall take such steps as may be necessary from
time to time to obtain from the United States, or the appropriate agency thereof, funds allotted and appropriated, pursuant
to section 131, for the purpose of paying the federal share of
[Title 47 RCW—page 144]
the just compensation to be paid to sign owners and owners
of real property under the terms of subsection (g) of section
131 and RCW 47.42.102, 47.42.103, and 47.42.104. [1984 c
7 § 230; 1971 ex.s. c 62 § 14.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.42.105 Unavailability of federal share. No sign,
display, or device shall be required to be removed if the federal share of the just compensation to be paid upon the
removal of such sign, display, or device is not available to
make such payment. [1971 ex.s. c 62 § 15.]
47.42.105
47.42.107 Compensation for removal under local
authority. (1) Just compensation shall be paid upon the
removal of any existing sign pursuant to the provisions of any
resolution or ordinance of any county, city, or town of the
state of Washington by such county, city, or town if:
(a) Such sign was lawfully in existence on May 10, 1971
(the effective date of the Scenic Vistas Act of 1971); or
(b) Such sign was erected subsequent to May 10, 1971
(the effective date of the Scenic Vistas Act of 1971), in compliance with existing state and local law.
(2) Such compensation shall be paid in the same manner
as specified in RCW 47.42.102(2) for the following:
(a) The taking from the owner of such sign, display, or
device of all right, title, leasehold, and interest in such sign,
display, or device; and
(b) The taking from the owner of the real property on
which the sign, display, or device is located, of the right to
erect and maintain such signs, displays, and devices thereon.
[1977 ex.s. c 141 § 1.]
47.42.107
Severability—1977 ex.s. c 141: "If any provision of this 1977 amendatory act, or its application to any person or circumstance is held invalid, the
remainder of the act, or the application of the provision to other persons or
circumstances is not affected." [1977 ex.s. c 141 § 2.]
47.42.110
47.42.110 Agreements for federal aid. The department is authorized to enter into agreements (and such supplementary agreements as may be necessary) consistent with
this chapter, with the secretary of commerce or the secretary
of transportation authorized under section 131(b) of title 23,
United States Code, as codified and enacted by Public Law
85-767 and amended only by section 106, Public Law 86342, in order that the state may become eligible for increased
federal aid as provided for in section 131 of title 23, United
States Code, as codified and enacted by Public Law 85-767
and amended only by section 106, Public Law 86-342. [1984
c 7 § 231; 1971 ex.s. c 62 § 16; 1961 c 96 § 11.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.42.120 Permits—Fees—Renewal—Permissible
acts—Revocation. Notwithstanding any other provisions of
this chapter, no sign except a sign of type 1 or 2 or those type
3 signs that advertise activities conducted upon the properties
where the signs are located, may be erected or maintained
without a permit issued by the department. Application for a
permit shall be made to the department on forms furnished by
it. The forms shall contain a statement that the owner or lessee of the land in question has consented thereto. The application shall be accompanied by a fee established by department rule to be deposited with the state treasurer to the credit
47.42.120
(2004 Ed.)
Highway Advertising Control Act—Scenic Vistas Act
of the motor vehicle fund. Permits shall be for the remainder
of the calendar year in which they are issued, and accompanying fees shall not be prorated for fractions of the year. Permits must be renewed annually through a certification process established by department rule. Advertising copy may be
changed at any time without the payment of an additional fee.
Assignment of permits in good standing is effective only
upon receipt of written notice of assignment by the department. A permit may be revoked after hearing if the department finds that any statement made in the application or
annual certification process was false or misleading, or that
the sign covered is not in good general condition and in a reasonable state of repair, or is otherwise in violation of this
chapter, if the false or misleading information has not been
corrected and the sign has not been brought into compliance
with this chapter or rules adopted under it within thirty days
after written notification. [1999 c 276 § 1; 1984 c 7 § 232;
1971 ex.s. c 62 § 17; 1961 c 96 § 12.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.42.130
47.42.130 Permit identification number. Every permit issued by the department shall be assigned a separate
identification number, and each permittee shall fasten to each
sign a weatherproof label, not larger than sixteen square
inches, that shall be furnished by the department and on
which shall be plainly visible the permit number. The permittee shall also place his or her name in a conspicuous position
on the front or back of each sign. The failure of a sign to have
such a label affixed to it is prima facie evidence that it is not
in compliance with the provisions of this chapter. [1999 c
276 § 2; 1984 c 7 § 233; 1961 c 96 § 13.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.42.140
47.42.140 Scenic areas designated. The following portions of state highways are designated as a part of the scenic
system:
(1) State route number 2 beginning at the crossing of
Woods creek at the east city limits of Monroe, thence in an
easterly direction by way of Stevens pass to a junction with
state route number 97 in the vicinity of Peshastin.
(2) State route number 7 beginning at a junction with
state route number 706 at Elbe, thence in a northerly direction
to a junction with state route number 507 south of Spanaway.
(3) State route number 11 beginning at the Blanchard
overcrossing, thence in a northerly direction to the limits of
Larabee state park (north line of section 36, township 37
north, range 2 east).
(4) State route number 12 beginning at Kosmos southeast of Morton, thence in an easterly direction across White
pass to the Oak Flat junction with state route number 410
northwest of Yakima.
(5) State route number 90 beginning at the westerly junction with West Lake Sammamish parkway in the vicinity of
Issaquah, thence in an easterly direction by way of North
Bend and Snoqualmie pass to a junction with state route number 970 at Cle Elum.
(6) State route number 97 beginning at a junction with
state route number 970 at Virden, thence via Blewett pass to
a junction with state route number 2 in the vicinity of Peshastin.
(2004 Ed.)
47.42.902
(7) State route number 106 beginning at the junction
with state route number 101 in the vicinity of Union, thence
northeasterly to the junction with state route number 3 in the
vicinity of Belfair.
(8) State route number 123 beginning at a junction with
state route number 12 at Ohanapecosh junction in the vicinity
west of White pass, thence in a northerly direction to a junction with state route number 410 at Cayuse junction in the
vicinity west of Chinook pass.
(9) State route number 165 beginning at the northwest
entrance to Mount Rainier national park, thence in a northerly
direction to a junction with state route number 162 east of the
town of South Prairie.
(10) State route number 206, Mt. Spokane Park Drive,
beginning at the junction with state route number 2 near the
north line section 3, township 26 N, range 43 E, thence northeasterly to a point in section 28, township 28 N, range 45 E at
the entrance to Mt. Spokane state park.
(11) State route number 305, beginning at the ferry slip
at Winslow on Bainbridge Island, thence northwesterly by
way of Agate Pass bridge to a junction with state route number 3 approximately four miles northwest of Poulsbo.
(12) State route number 410 beginning at the crossing of
Scatter creek approximately six miles east of Enumclaw,
thence in an easterly direction by way of Chinook pass to a
junction of state route number 12 and state route number 410.
(13) State route number 706 beginning at a junction with
state route number 7 at Elbe thence in an easterly direction to
the southwest entrance to Mount Rainier national park.
(14) State route number 970 beginning at a junction with
state route number 90 in the vicinity of Cle Elum thence via
Teanaway to a junction with state route number 97 in the
vicinity of Virden. [1993 c 430 § 12; 1992 c 26 § 3; 1975 c
63 § 9; 1974 ex.s. c 138 § 4. Prior: 1971 ex.s. c 73 § 28; 1971
ex.s. c 62 § 18; 1961 c 96 § 14. Cf. 1974 ex.s. c 154 § 4.]
47.42.900
47.42.900 Severability—1961 c 96. If any provision of
this chapter or its application to any person or circumstance is
held invalid, the remainder of the chapter, or the application
of the provision to other persons or circumstances is not
affected. [1961 c 96 § 16.]
47.42.901
47.42.901 Severability—1963 ex.s. c 3. If any provision of *section 55 of this amendatory act shall be held to be
invalid or shall be held to invalidate any provision of chapter
96, Laws of 1961 (chapter 47.42 RCW), then that provision
of this amendatory act shall be of no force and effect and the
provisions of chapter 96, Laws of 1961 (chapter 47.42 RCW)
shall continue in effect. [1963 ex.s. c 3 § 56.]
*Reviser's note: The reference to "section 55 of this amendatory act" is
to the 1963 amendment of RCW 47.42.100.
47.42.902
47.42.902 Severability—1971 ex.s. c 62. If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not
affected. [1971 ex.s. c 62 § 20.]
[Title 47 RCW—page 145]
47.42.910
Title 47 RCW: Public Highways and Transportation
47.42.910
47.42.910 Short title—1961 c 96. This chapter shall be
known and may be cited as the highway advertising control
act of 1961. [1961 c 96 § 17.]
47.42.911
47.42.911 Short title—1971 ex.s. c 62. This chapter
may be cited as the "Scenic Vistas Act." [1999 c 276 § 3;
1971 ex.s. c 62 § 19.]
47.42.920
47.42.920 Federal requirements—Conflict and
accord. If the secretary of the United States department of
transportation finds any part of this chapter to be in conflict
with federal requirements that are a prescribed condition to
the allocation of federal funds to the state, the conflicting part
of this chapter is hereby declared to be inoperative solely to
the extent of the conflict and with respect to the agencies
directly affected, and such finding or determination shall not
affect the operation of the remainder of this chapter in its
application to the agencies concerned. The rules under this
chapter shall meet federal requirements that are a necessary
condition to the receipt of federal funds by the state. [1985 c
142 § 4.]
Chapter 47.44
Chapter 47.44 RCW
FRANCHISES ON STATE HIGHWAYS
Sections
47.44.010
47.44.020
47.44.030
47.44.031
47.44.040
47.44.050
47.44.060
47.44.070
47.44.081
47.44.150
Wire and pipe line and tram and railway franchises—Application—Rules on hearing and notice.
Grant of franchise—Conditions—Hearing.
Removal of facilities—Notice—Reimbursement, when.
Removal of facilities—Limitation.
Franchises across joint bridges.
Permit for short distances.
Penalties.
Franchises to use toll facility property.
Exception—Leases for deployment of personal wireless service facilities.
Measure of damages.
47.44.010
47.44.010 Wire and pipe line and tram and railway
franchises—Application—Rules on hearing and notice.
(1) The department of transportation may grant franchises to
persons, associations, private or municipal corporations, the
United States government, or any agency thereof, to use any
state highway for the construction and maintenance of water
pipes, flume, gas, oil or coal pipes, telephone, telegraph and
electric light and power lines and conduits, trams or railways,
and any structures or facilities that are part of an urban public
transportation system owned or operated by a municipal corporation, agency, or department of the state of Washington
other than the department of transportation, and any other
such facilities. In order to minimize the disruption to traffic
and damage to the roadway, the department is encouraged to
develop a joint trenching policy with other affected jurisdictions so that all permittees and franchisees requiring access to
ground under the roadway may do so at one time.
(2) All applications for the franchise must be made in
writing and subscribed by the applicant, and describe the
state highway or portion thereof over which franchise is
desired and the nature of the franchise. The application must
also include the identification of all jurisdictions affected by
the franchise and the names of other possible franchisees who
should receive notice of the application for a franchise.
[Title 47 RCW—page 146]
(3) The department of transportation shall adopt rules
providing for a hearing or an opportunity for a hearing with
reasonable public notice thereof with respect to any franchise
application involving the construction and maintenance of
utilities or other facilities within the highway right of way
which the department determines may (a) during construction, significantly disrupt the flow of traffic or use of driveways or other facilities within the right of way, or (b) during
or following construction, cause a significant and adverse
effect upon the surrounding environment. [2001 c 201 § 5;
1980 c 28 § 1; 1975 1st ex.s. c 46 § 1; 1967 c 108 § 7; 1963 c
70 § 1; 1961 ex.s. c 21 § 26; 1961 c 13 § 47.44.010. Prior:
1943 c 265 § 2; 1937 c 53 § 83; Rem. Supp. 1943 § 6400-83.]
Urban public transportation system defined: RCW 47.04.082.
47.44.020
47.44.020 Grant of franchise—Conditions—Hearing. (1) If the department of transportation deems it to be for
the public interest, the franchise may be granted in whole or
in part, with or without hearing under such regulations and
conditions as the department may prescribe, with or without
compensation, but not in excess of the reasonable cost for
investigating, handling, and granting the franchise. The
department may require that the utility and appurtenances be
so placed on the highway that they will, in its opinion, least
interfere with other uses of the highway.
(2) If a hearing is held, it must be conducted by the
department, and may be adjourned from time to time until
completed. The applicant may be required to produce all facts
pertaining to the franchise, and evidence may be taken for
and against granting it.
(3) The facility must be made subject to removal when
necessary for the construction, alteration, repair, or improvement of the highway and at the expense of the franchise
holder, except that the state shall pay the cost of the removal
whenever the state is entitled to receive proportionate reimbursement therefor from the United States in the cases and in
the manner set forth in RCW 47.44.030. Renewal upon expiration of a franchise must be by application.
(4) A person constructing or operating such a utility on a
state highway is liable to any person injured thereby for any
damages incident to the work of installation or the continuation of the occupancy of the highway by the utility, and
except as provided above, is liable to the state for all necessary expenses incurred in restoring the highway to a permanent suitable condition for travel. A person constructing or
operating such a utility on a state highway is also liable to the
state for all necessary expenses incurred in inspecting the
construction and restoring the pavement or other related
transportation equipment or facilities to a permanent condition suitable for travel and operation in accordance with
requirements set by the department. Permit and franchise
holders are also financially responsible to the department for
trenching work not completed within the contractual period
and for compensating for the loss of useful pavement life
caused by trenching. No franchise may be granted for a
longer period than fifty years, and no exclusive franchise or
privilege may be granted.
(5) The holder of a franchise granted under this section is
financially responsible to the department for trenching work
not completed within the period of the permit and for com(2004 Ed.)
Franchises on State Highways
pensating for the loss of useful pavement life caused by
trenching. In the case of common trenching operations, liability under this subsection will be assessed equally between the
franchisees. The assessed parties may thereafter pursue
claims of contribution or indemnity in accord with such fault
as may be determined by arbitration or other legal action.
[2001 c 201 § 6; 1980 c 28 § 2; 1975 1st ex.s. c 46 § 2; 1961
c 13 § 47.44.020. Prior: 1959 c 330 § 1; 1937 c 53 § 84; RRS
§ 6400-84.]
47.44.030
47.44.030 Removal of facilities—Notice—Reimbursement, when. If the department deems it necessary that
a facility be removed from the highway for the safety of persons traveling thereon or for construction, alteration,
improvement, or maintenance purposes, it shall give notice to
the franchise holder to remove the facility at his or her
expense and as the department orders. However, notwithstanding any contrary provision of law or of any existing or
future franchise held by a public utility, the department shall
pay or reimburse the owner for relocation or removal of any
publicly, privately, or cooperatively owned public utility
facilities when necessitated by the construction, reconstruction, relocation, or improvement of a highway that is part of
the national system of interstate and defense highways for
each item of cost for which the state is entitled to be reimbursed by the United States in an amount equal to at least
ninety percent thereof under the provisions of section 123 of
the federal aid highway act of 1958 and any other subsequent
act of congress under which the state is entitled to be reimbursed by the United States in an amount equal to at least
ninety percent of the cost of relocation of utility facilities on
the national system of interstate and defense highways.
[1984 c 7 § 234; 1961 c 13 § 47.44.030. Prior: 1959 c 330 §
2; 1937 c 53 § 85; RRS § 6400-85.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.44.031
47.44.031 Removal of facilities—Limitation. The
provisions of RCW 47.44.030 authorizing the department to
pay or reimburse the owner of a utility apply only to relocation or removal of utility facilities required by state construction contracts which are advertised for bids by the department
after June 30, 1959. [1984 c 7 § 235; 1961 c 13 § 47.44.031.
Prior: 1959 c 330 § 3.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.44.040
47.44.040 Franchises across joint bridges. Whenever
any bridge exists on the route of any state highway and
crosses any stream, body of water, gulch, navigable water,
swamp, or other topographical formation constituting the
boundary of this state or the boundary of a county, city, or
town of this state and the bridge is owned or operated by this
state jointly with any such county, city, or town, or with any
municipal corporation of this state, or with such other state or
with any county, city, or town of such other state, the department is empowered to join with the proper officials of the
county, city, or town, or the municipal corporation of this
state or of such other state or of such county, city, or town of
such other state in granting franchises to persons or private or
municipal corporations for the construction and maintenance
on the bridge of water pipes, flumes, gas pipes, telephone,
(2004 Ed.)
47.44.060
telegraph, and electric light and power lines and conduits,
trams and railways, and any structures or facilities that are
part of an urban public transportation system owned or operated by a municipal corporation, agency, or department of the
state of Washington other than the department, or any other
such facilities. All such franchises shall be granted in the
same manner as provided for the granting of like franchises
on state highways. Any revenue accruing to the state of
Washington from the franchises shall be paid to the state treasurer and deposited to the credit of the fund from which this
state's share of the cost of joint operation of the bridge is paid.
[1984 c 7 § 236; 1967 c 108 § 8; 1961 c 13 § 47.44.040. Prior:
1937 c 53 § 86; RRS § 6400-86.]
Severability—1984 c 7: See note following RCW 47.01.141.
Urban public transportation system defined: RCW 47.04.082.
47.44.050
47.44.050 Permit for short distances. (1) The department may grant a permit to construct or maintain on, over,
across, or along any state highway any water, gas, telephone,
telegraph, light, power, or other such facilities when they do
not extend along the state highway for a distance greater than
three hundred feet. The department may require such information as it deems necessary in the application for any such
permit, and may grant or withhold the permit within its discretion. Any permit granted may be canceled at any time, and
any facilities remaining upon the right of way of the state
highway after thirty days written notice of the cancellation
are an unlawful obstruction and may be removed in the manner provided by law.
(2) The holder of a permit granted under this section is
financially responsible to the department for trenching work
not completed within the period of the permit and for compensating for the loss of useful pavement life caused by
trenching. In the case of common trenching operations, liability under this subsection will be assessed equally between the
permit holders. The assessed parties may thereafter pursue
claims of contribution or indemnity in accord with such fault
as may be determined by arbitration or other legal action.
[2001 c 201 § 7; 1984 c 7 § 237; 1961 c 13 § 47.44.050. Prior:
1943 c 265 § 3; 1937 c 53 § 87; Rem. Supp. 1943 § 6400-87.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.44.060
47.44.060 Penalties. (1) Any person, firm, or corporation who constructs or maintains on, over, across, or along
any state highway any water pipe, flume, gas pipe, telegraph,
telephone, electric light, or power lines, or tram or railway, or
any other such facilities, without having first obtained and
having at all times in full force and effect a franchise or permit to do so in the manner provided by law is guilty of a misdemeanor. Each day of violation is a separate and distinct
offense.
(2) Any person, firm, or corporation who constructs or
maintains on, over, across, or along any state highway any
water pipe, flume, gas pipe, telegraph, telephone, electric
light or power lines, or tram or railway, or any other such
facilities, without having first obtained and having at all
times in full force and effect a franchise or permit to do so in
the manner provided by law is liable for a civil penalty of one
hundred dollars per calendar day beginning forty-five days
from the date notice is given and until application is made for
[Title 47 RCW—page 147]
47.44.070
Title 47 RCW: Public Highways and Transportation
a franchise or permit or until the facility is removed as
required by notice. The state shall give notice by certified
mail that a franchise or permit is required or the facility must
be removed and shall include in the notice sufficient information to identify the portion of right of way in question. Notice
is effective upon delivery.
(3) If a person, firm or corporation does not apply for a
permit or franchise within forty-five days of notice given in
accordance with subsection (2) of this section or the state
determines that the facility constructed or maintained without
a permit or franchise would not be granted a permit or franchise, the state may order the facility to be removed within
such time period as the state may specify. If the facility is not
removed, the state, in addition to any other remedy, may
remove the facility at the expense of the owner. [1989 c 224
§ 1; 1961 c 13 § 47.44.060. Prior: 1943 c 265 § 1; 1937 c 53
§ 82; Rem. Supp. 1943 § 6400-82.]
47.44.070 Franchises to use toll facility property.
See RCW 47.56.256.
47.44.070
47.44.081 Exception—Leases for deployment of personal wireless service facilities. This chapter does not apply
to leases issued for the deployment of personal wireless service facilities as provided in RCW 47.04.045. [2003 c 244 §
3.]
47.44.081
47.44.150 Measure of damages. In any action for damages against the state of Washington, its agents, contractors,
or employees by reason of damages to a utility or other facility located on a state highway, the damages are limited to the
cost of repair of the utility or facility and are recoverable only
in those instances where the utility or facility is authorized to
be located on the state highway. However, the state is subject
to the penalties provided in RCW 19.122.070 (1) and (2) only
if the state has failed to give a notice meeting the requirements of RCW 19.122.030 to utilities or facilities that are
authorized to be located on the state highway. [1989 c 196 §
1.]
47.44.150
Chapter 47.46
Chapter 47.46 RCW
PUBLIC-PRIVATE
TRANSPORTATION INITIATIVES
Sections
47.46.010
47.46.011
47.46.020
47.46.030
47.46.040
47.46.050
47.46.060
47.46.070
47.46.080
47.46.090
47.46.100
47.46.105
47.46.110
47.46.120
47.46.130
47.46.140
47.46.150
47.46.160
47.46.170
47.46.180
Finding.
Finding—Intent—2002 c 114.
Definition.
Demonstration projects—Selection—Public involvement.
Demonstration projects—Terms of agreements—Public participation.
Financial arrangements.
Deferral of taxes—Application—Repayment.
Use of state bonds on certain projects.
State toll facilities authorized for projects.
Citizen advisory committee—Tolls.
Tolls—Setting—Lien on.
Tolls—Collection.
Tolls—Term, use.
Toll increases in excess of fiscal growth factor.
Use of state bond proceeds.
Repayment of motor vehicle fund from toll charges.
Alteration not a new proposal.
Applicable rules and statutes.
Application of RCW 47.46.040 and 47.46.050.
Legislative oversight committee.
[Title 47 RCW—page 148]
47.46.900
Effective date—1993 c 370.
47.46.010
47.46.010 Finding. The legislature finds and declares:
It is essential for the economic, social, and environmental well-being of the state and the maintenance of a high quality of life that the people of the state have an efficient transportation system.
The ability of the state to provide an efficient transportation system will be enhanced by a public-private sector program providing for private entities to undertake all or a portion of the study, planning, design, development, financing,
acquisition, installation, construction or improvement, operation, and maintenance of transportation systems and facility
projects.
A public-private initiatives program will provide benefits to both the public and private sectors. Public-private initiatives provide a sound economic investment opportunity for
the private sector. Such initiatives will provide the state with
increased access to property development and project opportunities, financial and development expertise, and will supplement state transportation revenues, allowing the state to
use its limited resources for other needed projects.
The public-private initiatives program, to the fullest
extent possible, should encourage and promote business and
employment opportunities for Washington state citizens.
The public-private initiatives program shall be implemented in cooperation, consultation, and with the support of
the affected communities and local jurisdictions.
The secretary of transportation should be permitted and
encouraged to test the feasibility of building privately funded
transportation systems and facilities or segments thereof
through the use of innovative agreements with the private
sector. The secretary of transportation should be vested with
the authority to solicit, evaluate, negotiate, and administer
public-private agreements with the private sector relating to
the planning, construction, upgrading, or reconstruction of
transportation systems and facilities.
Agreements negotiated under a public-private initiatives
program will not bestow on private entities an immediate
right to construct and operate the proposed transportation
facilities. Rather, agreements will grant to private entities the
opportunity to design the proposed facilities, demonstrate
public support for proposed facilities, and complete the planning processes required in order to obtain a future decision by
the department of transportation and other state and local lead
agencies on whether the facilities should be permitted and
built.
Agreements negotiated under the public-private initiatives program should establish the conditions under which
the private developer may secure the approval necessary to
develop and operate the proposed transportation facilities;
create a framework to attract the private capital necessary to
finance their development; ensure that the transportation
facilities will be designed, constructed, and operated in
accordance with applicable local, regional, state, and federal
laws and the applicable standards and policies of the department of transportation; and require a demonstration that the
proposed transportation facility has the support of the
affected communities and local jurisdictions.
The legislature finds that the Puget Sound congestion
pricing project, selected under this chapter, raises major
(2004 Ed.)
Public-Private Transportation Initiatives
transportation policy, economic, and equity concerns. These
relate to the integrity of the state's high-occupancy vehicle
program; the cost-effective movement of freight and goods;
the diversion of traffic to local streets and arterials; and possible financial hardship to commuters. The legislature further
finds that these potential economic and social impacts require
comprehensive legislative review prior to advancement of the
project and directs that the secretary not proceed with the
implementation of the project without prior approval of the
legislature.
The department of transportation should be encouraged
to take advantage of new opportunities provided by federal
legislation under section 1012 of the Intermodal Surface
Transportation Efficiency Act of 1991 (ISTEA). That section
establishes a new program authorizing federal participation
in construction or improvement or improvement of publicly
or privately owned toll roads, bridges, and tunnels, and
allows states to leverage available federal funds as a means
for attracting private sector capital. [1995 2nd sp.s. c 19 § 1;
1993 c 370 § 1.]
Effective date—1995 2nd sp.s. c 19: "This act is necessary for the
immediate preservation of the public peace, health, or safety, or support of
the state government and its existing public institutions, and shall take effect
immediately [June 16, 1995]." [1995 2nd sp.s. c 19 § 5.]
47.46.011
47.46.011 Finding—Intent—2002 c 114. The legislature finds that greater flexibility to provide state financing for
projects developed under chapter 47.46 RCW will result in
better use of public resources, lower financing costs, and
potential savings to taxpayers. The legislature intends to:
Clarify the ability of the department of transportation to use
public and private financing for projects selected and developed under chapter 47.46 RCW; provide the department with
specific means of state financing where that financing is in
the public's best interest; provide citizens living in the
impacted areas a statutory mechanism to review proposed toll
rates and provide input before adoption of toll schedules by
the toll authority; and prevent unreasonable delay of critical
transportation projects that are essential for public safety and
welfare. [2002 c 114 § 1.]
Captions not law—2002 c 114: "Captions used in this act do not constitute any part of the law." [2002 c 114 § 26.]
47.46.020
47.46.020 Definition. As used in this chapter, "transportation systems and facilities" means capital-related
improvements and additions to the state's transportation
infrastructure, including but not limited to highways, roads,
bridges, vehicles, and equipment, marine-related facilities,
vehicles, and equipment, park and ride lots, transit stations
and equipment, transportation management systems, and
other transportation-related investments. [1993 c 370 § 2.]
47.46.030
47.46.030 Demonstration projects—Selection—Public involvement. (1) The secretary or a designee shall solicit
proposals from, and negotiate and enter into agreements with,
private entities to undertake as appropriate, together with the
department and other public entities, all or a portion of the
study, planning, design, construction, operation, and maintenance of transportation systems and facilities, using in whole
or in part public or private sources of financing.
(2004 Ed.)
47.46.030
The public-private initiatives program may develop up
to six demonstration projects. Each proposal shall be weighed
on its own merits, and each of the six agreements shall be
negotiated individually, and as a stand-alone project.
(2) If project proposals selected prior to September 1,
1994, are terminated by the public or private sectors, the
department shall not select any new projects, including
project proposals submitted to the department prior to September 1, 1994, and designated by the transportation commission as placeholder projects, after June 16, 1995, until
June 30, 1997.
The department, in consultation with the legislative
transportation committee, shall conduct a program and fiscal
audit of the public-private initiatives program for the biennium ending June 30, 1997. The department shall submit a
progress report to the legislative transportation committee on
the program and fiscal audit by June 30, 1996, with preliminary and final audit reports due December 1, 1996, and June
30, 1997, respectively.
The department shall develop and submit a proposed
public involvement plan to the 1997 legislature to identify the
process for selecting new potential projects and the associated costs of implementing the plan. The legislature must
adopt the public involvement plan before the department may
proceed with any activity related to project identification and
selection. Following legislative adoption of the public
involvement plan, the department is authorized to implement
the plan and to identify potential new projects.
The public involvement plan for projects selected after
June 30, 1997, shall, at a minimum, identify projects that: (a)
Have the potential of achieving overall public support among
users of the projects, residents of communities in the vicinity
of the projects, and residents of communities impacted by the
projects; (b) meet a state transportation need; (c) provide a
significant state benefit; and (d) provide competition among
proposers and maximum cost benefits to users. Prospective
projects may include projects identified by the department or
submitted by the private sector.
Projects that meet the minimum criteria established
under this section and the requirements of the public involvement plan developed by the department and approved by the
legislature shall be submitted to the Washington state transportation commission for its review. The commission, in
turn, shall submit a list of eligible projects to the legislative
transportation committee for its consideration. Forty-five
days after the submission to the legislative transportation
committee of the list of eligible projects, the secretary is
authorized to solicit proposals for the eligible project.
(3) Prior to entering into agreements with private entities
under the requirements of RCW 47.46.040 for any project
proposal selected before September 1, 1994, or after June 30,
1997, except as provided for in subsections (12) and (13) of
this section, the department shall require an advisory vote as
provided under subsections (5) through (10) of this section.
(4) The advisory vote shall apply to project proposals
selected prior to September 1, 1994, or after June 30, 1997,
that receive public opposition as demonstrated by the submission to the department of original petitions bearing at least
five thousand signatures of individuals opposing the project
collected and submitted in accordance with the dates established in subsections (12) and (13) of this section. The advi[Title 47 RCW—page 149]
47.46.030
Title 47 RCW: Public Highways and Transportation
sory vote shall be on the preferred alternative identified under
the requirements of chapter 43.21C RCW and, if applicable,
the national environmental policy act, 42 U.S.C. 4321 et seq.
The execution by the department of the advisory vote process
established in this section is subject to the prior appropriation
of funds by the legislature for the purpose of conducting environmental impact studies, a public involvement program,
local involvement committee activities, traffic and economic
impact analyses, engineering and technical studies, and the
advisory vote.
(5) In preparing for the advisory vote, the department
shall conduct a comprehensive analysis of traffic patterns and
economic impact to define the geographical boundary of the
project area that is affected by the imposition of tolls or user
fees authorized under this chapter. The area so defined is
referred to in this section as the affected project area. In
defining the affected project area, the department shall, at a
minimum, undertake: (a) A comparison of the estimated percentage of residents of communities in the vicinity of the
project and in other communities impacted by the project
who could be subject to tolls or user fees and the estimated
percentage of other users and transient traffic that could be
subject to tolls or user fees; (b) an analysis of the anticipated
traffic diversion patterns; (c) an analysis of the potential economic impact resulting from proposed toll rates or user fee
rates imposed on residents, commercial traffic, and commercial entities in communities in the vicinity of and impacted by
the project; (d) an analysis of the economic impact of tolls or
user fees on the price of goods and services generally; and (e)
an analysis of the relationship of the project to state transportation needs and benefits.
(6)(a) After determining the definition of the affected
project area, the department shall establish a committee comprised of individuals who represent cities and counties in the
affected project area; organizations formed to support or
oppose the project; and users of the project. The committee
shall be named the public-private local involvement committee, and be known as the local involvement committee.
(b) The members of the local involvement committee
shall be: (i) An elected official from each city within the
affected project area; (ii) an elected official from each county
within the affected project area; (iii) two persons from each
county within the affected project area who represent an
organization formed in support of the project, if the organization exists; (iv) two persons from each county within the
affected project area who represent an organization formed to
oppose the project, if the organization exists; and (v) four
public members active in a statewide transportation organization. If the committee makeup results in an even number of
committee members, there shall be an additional appointment
of an elected official from the county in which all, or the
greatest portion of the project is located.
(c) City and county elected officials shall be appointed
by a majority of the members of the city or county legislative
authorities of each city or county within the affected project
area, respectively. The county legislative authority of each
county within the affected project area shall identify and validate organizations officially formed in support of or in opposition to the project and shall make the appointments required
under this section from a list submitted by the chair of the
organizations. Public members shall be appointed by the gov[Title 47 RCW—page 150]
ernor. All appointments to the local involvement committee
shall be made and submitted to the department of transportation no later than January 1, 1996, for projects selected prior
to September 1, 1994, and no later than thirty days after the
affected project area is defined for projects selected after June
30, 1997. Vacancies in the membership of the local involvement committee shall be filled by the appointing authority
under (b)(i) through (v) of this subsection for each position
on the committee.
(d) The local involvement committee shall serve in an
advisory capacity to the department on all matters related to
the execution of the advisory vote.
(e) Members of the local involvement committee serve
without compensation and may not receive subsistence, lodging expenses, or travel expenses.
(7) The department shall conduct a minimum thirty-day
public comment period on the definition of the geographical
boundary of the project area. The department, in consultation
with the local involvement committee, shall make adjustments, if required, to the definition of the geographical
boundary of the affected project area, based on comments
received from the public. Within fourteen calendar days after
the public comment period, the department shall set the
boundaries of the affected project area in units no smaller
than a precinct as defined in *RCW 29.01.120.
(8) The department, in consultation with the local
involvement committee, shall develop a description for
selected project proposals. After developing the description
of the project proposal, the department shall publish the
project proposal description in newspapers of general circulation for seven calendar days in the affected project area.
Within fourteen calendar days after the last day of the publication of the project proposal description, the department
shall transmit a copy of the map depicting the affected project
area and the description of the project proposal to the county
auditor of the county in which any portion of the affected
project area is located.
(9) The department shall provide the legislative transportation committee with progress reports on the status of the
definition of the affected project area and the description of
the project proposal.
(10) Upon receipt of the map and the description of the
project proposal, the county auditor shall, within thirty days,
verify the precincts that are located within the affected
project area. The county auditor shall prepare the text identifying and describing the affected project area and the project
proposal using the definition of the geographical boundary of
the affected project area and the project description submitted
by the department and shall set an election date for the submission of a ballot proposition authorizing the imposition of
tolls or user fees to implement the proposed project within the
affected project area, which date may be the next succeeding
general election to be held in the state, or at a special election,
if requested by the department. The text of the project proposal must appear in a voter's pamphlet for the affected
project area. The department shall pay the costs of publication and distribution. The special election date must be the
next date for a special election provided under *RCW
29.13.020 that is at least sixty days but, if authorized under
*RCW 29.13.020, no more than ninety days after the receipt
of the final map and project description by the auditor. The
(2004 Ed.)
Public-Private Transportation Initiatives
department shall pay the cost of an election held under this
section.
(11) Notwithstanding any other provision of law, the
department may contract with a private developer of a
selected project proposal to conduct environmental impact
studies, a public involvement program, and engineering and
technical studies funded by the legislature. For projects subject to this subsection, the department shall not enter into an
agreement under RCW 47.46.040 prior to the advisory vote
on the preferred alternative.
(12) Subsections (5) through (10) of this section shall not
apply to project proposals selected prior to September 1,
1994, that have no organized public opposition as demonstrated by the submission to the department of original petitions bearing at least five thousand signatures of individuals
opposing the project, collected and submitted after September 1, 1994, and by thirty calendar days after June 16, 1995.
(13) Subsections (5) through (10) of this section shall not
apply to project proposals selected after June 30, 1997, that
have no organized public opposition as demonstrated by the
submission to the department of original petitions bearing at
least five thousand signatures of individuals opposing the
project, collected and submitted by ninety calendar days after
project selection. [2002 c 114 § 3; 1996 c 280 § 1; 1995 2nd
sp.s. c 19 § 2; 1993 c 370 § 3.]
*Reviser's note: RCW 29.01.120 and 29.13.020 were recodified as
RCW 29A.04.121 and 29A.04.330, respectively, pursuant to 2003 c 111 §
2401, effective July 1, 2004.
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
Effective date—1996 c 280: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[March 29, 1996]." [1996 c 280 § 2.]
Effective date—1995 2nd sp.s. c 19: See note following RCW
47.46.010.
47.46.040
47.46.040 Demonstration projects—Terms of agreements—Public participation. (1) The secretary or a designee shall consult with legal, financial, and other experts
within and outside state government in the negotiation and
development of the agreements.
(2) Agreements may provide for private ownership of the
projects during the construction period. After completion and
final acceptance of each project or discrete segment thereof,
the agreement may provide for state ownership of the transportation systems and facilities and lease to the private entity
unless the state elects to provide for ownership of the facility
by the private entity during the term of the agreement.
The state may lease each of the demonstration projects,
or applicable project segments, to the private entities for
operating purposes for up to fifty years.
(3) The department may exercise any power possessed
by it to facilitate the development, construction, financing
operation, and maintenance of transportation projects under
this section. Agreements for maintenance services entered
into under this section shall provide for full reimbursement
for services rendered by the department or other state agencies. Agreements for police services for projects, involving
state highway routes, developed under agreements shall be
entered into with the Washington state patrol. The agreement
(2004 Ed.)
47.46.040
for police services shall provide that the state patrol will be
reimbursed for costs on a comparable basis with the costs
incurred for comparable service on other state highway
routes. The department may provide services for which it is
reimbursed, including but not limited to preliminary planning, environmental certification, and preliminary design of
the demonstration projects.
(4) The plans and specifications for each project constructed under this section shall comply with the department's
standards for state projects. A facility constructed by and
leased to a private entity is deemed to be a part of the state
highway system for purposes of identification, maintenance,
and enforcement of traffic laws and for the purposes of applicable sections of this title. Upon reversion of the facility to
the state, the project must meet all applicable state standards.
Agreements shall address responsibility for reconstruction or
renovations that are required in order for a facility to meet all
applicable state standards upon reversion of the facility to the
state.
(5) For the purpose of facilitating these projects and to
assist the private entity in the financing, development, construction, and operation of the transportation systems and
facilities, the agreements may include provisions for the
department to exercise its authority, including the lease of
facilities, rights of way, and airspace, exercise of the power
of eminent domain, granting of development rights and
opportunities, granting of necessary easements and rights of
access, issuance of permits and other authorizations, protection from competition, remedies in the event of default of
either of the parties, granting of contractual and real property
rights, liability during construction and the term of the lease,
authority to negotiate acquisition of rights of way in excess of
appraised value, and any other provision deemed necessary
by the secretary.
(6) The agreements entered into under this section may
include provisions authorizing the state to grant necessary
easements and lease to a private entity existing rights of way
or rights of way subsequently acquired with public or private
financing. The agreements may also include provisions to
lease to the entity airspace above or below the right of way
associated or to be associated with the private entity's transportation facility. In consideration for the reversion rights in
these privately constructed facilities, the department may
negotiate a charge for the lease of airspace rights during the
term of the agreement for a period not to exceed fifty years.
If, after the expiration of this period, the department continues to lease these airspace rights to the private entity, it shall
do so only at fair market value. The agreement may also provide the private entity the right of first refusal to undertake
projects utilizing airspace owned by the state in the vicinity
of the public-private project.
(7) Agreements under this section may include any contractual provision that is necessary to protect the project revenues required to repay the costs incurred to study, plan,
design, finance, acquire, build, install, operate, enforce laws,
and maintain toll highways, bridges, and tunnels and which
will not unreasonably inhibit or prohibit the development of
additional public transportation systems and facilities. Agreements under this section must secure and maintain liability
insurance coverage in amounts appropriate to protect the
project's viability and may address state indemnification of
[Title 47 RCW—page 151]
47.46.050
Title 47 RCW: Public Highways and Transportation
the private entity for design and construction liability where
the state has approved relevant design and construction plans.
(8) Agreements entered into under this section shall
include a process that provides for public involvement in
decision making with respect to the development of the
projects.
(9)(a) In carrying out the public involvement process
required in subsection (8) of this section, the private entity
shall proactively seek public participation through a process
appropriate to the characteristics of the project that assesses
and demonstrates public support among: Users of the
project, residents of communities in the vicinity of the
project, and residents of communities impacted by the
project.
(b) The private entity shall conduct a comprehensive
public involvement process that provides, periodically
throughout the development and implementation of the
project, users and residents of communities in the affected
project area an opportunity to comment upon key issues
regarding the project including, but not limited to: (i) Alternative sizes and scopes; (ii) design; (iii) environmental
assessment; (iv) right of way and access plans; (v) traffic
impacts; (vi) tolling or user fee strategies and tolling or user
fee ranges; (vii) project cost; (viii) construction impacts; (ix)
facility operation; and (x) any other salient characteristics.
(c) If the affected project area has not been defined, the
private entity shall define the affected project area by conducting, at a minimum: (i) A comparison of the estimated
percentage of residents of communities in the vicinity of the
project and in other communities impacted by the project
who could be subject to tolls or user fees and the estimated
percentage of other users and transient traffic that could be
subject to tolls or user fees; (ii) an analysis of the anticipated
traffic diversion patterns; (iii) an analysis of the potential
economic impact resulting from proposed toll rates or user
fee rates imposed on residents, commercial traffic, and commercial entities in communities in the vicinity of and
impacted by the project; (iv) an analysis of the economic
impact of tolls or user fees on the price of goods and services
generally; and (v) an analysis of the relationship of the
project to state transportation needs and benefits.
The agreement may require an advisory vote by users of
and residents in the affected project area.
(d) In seeking public participation, the private entity
shall establish a local involvement committee or committees
comprised of residents of the affected project area, individuals who represent cities and counties in the affected project
area, organizations formed to support or oppose the project, if
such organizations exist, and users of the project. The private
entity shall, at a minimum, establish a committee as required
under the specifications of RCW 47.46.030(6)(b) (ii) and (iii)
and appointments to such committee shall be made no later
than thirty days after the project area is defined.
(e) Local involvement committees shall act in an advisory capacity to the department and the private entity on all
issues related to the development and implementation of the
public involvement process established under this section.
(f) The department and the private entity shall provide
the legislative transportation committee and local involvement committees with progress reports on the status of the
[Title 47 RCW—page 152]
public involvement process including the results of an advisory vote, if any occurs.
(10) Nothing in this chapter limits the right of the secretary and his or her agents to render such advice and to make
such recommendations as they deem to be in the best interests
of the state and the public. [2002 c 114 § 16; 2001 c 64 § 14;
1995 2nd sp.s. c 19 § 3; 1993 c 370 § 4.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
Effective date—1995 2nd sp.s. c 19: See note following RCW
47.46.010.
47.46.050
47.46.050 Financial arrangements. (1) The department may enter into agreements using federal, state, and local
financing in connection with the projects, including without
limitation, grants, loans, and other measures authorized by
section 1012 of ISTEA, and to do such things as necessary
and desirable to maximize the funding and financing, including the formation of a revolving loan fund to implement this
section.
(2) Agreements entered into under this section may
authorize the private entity to lease the facilities within a designated area or areas from the state and to impose user fees or
tolls within the designated area to allow a reasonable rate of
return on investment, as established through a negotiated
agreement between the state and the private entity. The negotiated agreement shall determine a maximum development
fee and, where appropriate, a maximum rate of return on
investment, based on project and financing characteristics. If
the negotiated rate of return on investment or development
fee is not affected, the private entity may establish and modify toll rates and user fees.
(3) Agreements that include a maximum rate of return
may establish "incentive" rates of return beyond the negotiated maximum rate of return on investment. The incentive
rates of return shall be designed to provide financial benefits
to the affected public jurisdictions and the private entity,
given the attainment of various safety, performance, or transportation demand management goals. The incentive rates of
return shall be negotiated in the agreement.
(4) Agreements shall require that over the term of the
ownership or lease the user fees or toll revenues be applied
only to payment of:
(a) The capital outlay costs for the project, including the
costs associated with planning, design, development, financing, construction, improvement, operations, toll collection,
maintenance, and administration of the project;
(b) The reimbursement to the state for all costs associated with an election as required under RCW 47.46.030, the
costs of project review and oversight, and technical and law
enforcement services;
(c) The establishment of a fund to assure the adequacy of
maintenance expenditures; and
(d) A reasonable return on investment to the private
entity. A negotiated agreement shall not extend the term of
the ownership or lease beyond the period of time required for
payment of the private entity's capital outlay costs for the
project under this subsection. [2002 c 114 § 17; 1995 2nd
sp.s. c 19 § 4; 1993 c 370 § 5.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
(2004 Ed.)
Public-Private Transportation Initiatives
Captions not law—2002 c 114: See note following RCW 47.46.011.
Effective date—1995 2nd sp.s. c 19: See note following RCW
47.46.010.
47.46.060
47.46.060 Deferral of taxes—Application—Repayment. (1) Any person, including the department of transportation and any private entity or entities, may apply for deferral of taxes on the site preparation for, the construction of, the
acquisition of any related machinery and equipment which
will become a part of, and the rental of equipment for use in
the state route number 16 corridor improvements project
under this chapter. Application shall be made to the department of revenue in a form and manner prescribed by the
department of revenue. The application shall contain information regarding estimated or actual costs, time schedules for
completion and operation, and other information required by
the department of revenue. The department of revenue shall
approve the application within sixty days if it meets the
requirements of this section.
(2) The department of revenue shall issue a sales and use
tax deferral certificate for state and local sales and use taxes
due under chapters 82.08, 82.12, and 82.14 RCW on the
project.
(3) The department of transportation or a private entity
granted a tax deferral under this section shall begin paying
the deferred taxes in the fifth year after the date certified by
the department of revenue as the date on which the project is
operationally complete. The first payment is due on December 31st of the fifth calendar year after such certified date,
with subsequent annual payments due on December 31st of
the following nine years. Each payment shall equal ten percent of the deferred tax. The project is operationally complete
under this section when the collection of tolls is commenced
for the state route number 16 improvements covered by the
deferral.
(4) The department of revenue may authorize an accelerated repayment schedule upon request of the department of
transportation or a private entity granted a deferral under this
section.
(5) Interest shall not be charged on any taxes deferred
under this section for the period of deferral, although all other
penalties and interest applicable to delinquent excise taxes
may be assessed and imposed for delinquent payments under
this section. The debt for deferred taxes is not extinguished
by insolvency or other failure of the private entity. Transfer
of ownership does not terminate the deferral.
(6) Applications and any other information received by
the department of revenue under this section are not confidential and are subject to disclosure. Chapter 82.32 RCW
applies to the administration of this section. [2002 c 114 §
18; 1998 c 179 § 4.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
Finding—1998 c 179: See note following RCW 35.21.718.
47.46.070
47.46.070 Use of state bonds on certain projects. (1)
To the extent that the legislature specifically appropriates
funding for a project developed under this chapter using the
proceeds of bonds issued by the state, an agreement for the
design or construction of the project entered into by the sec(2004 Ed.)
47.46.100
retary must incorporate provisions that are consistent with the
use of the state financing provided by the appropriation.
(2) The secretary shall amend existing agreements or
execute new agreements to comply with subsection (1) of this
section.
(3) If the secretary is unable to reach agreement with
other parties on contractual provisions providing for state
financing, the secretary shall not enter into an agreement, or
shall take no action with respect to an agreement, or shall
exercise termination provisions, whichever option in the secretary's determination will result in the lowest net cost to the
state. [2002 c 114 § 4.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
47.46.080
47.46.080 State toll facilities authorized for projects.
The department may provide for the establishment and construction of state toll bridge facilities upon any public highways of this state together with approaches to them under
agreements entered into under this chapter to develop such
facilities. A state toll bridge facility authorized under this section includes, but is not limited to, the construction of an
additional toll bridge, including approaches, adjacent to and
within two miles of an existing bridge, the imposition of tolls
on both bridges, and the operation of both bridges as one toll
facility. [2002 c 114 § 5.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
47.46.090
47.46.090 Citizen advisory committee—Tolls. (1) A
citizen advisory committee must be created for any project
developed under this chapter that imposes toll charges for use
of a transportation facility. The governor shall appoint nine
members to the committee, all of whom must be permanent
residents of the affected project area, as that term is used in
RCW 47.46.030.
(2) The citizen advisory committee shall serve in an
advisory capacity to the commission on all matters related to
the imposition of tolls. Members of the committee shall serve
without compensation.
(3) No toll charge may be imposed or modified unless
the citizen advisory committee has been given at least twenty
days to review and comment on any proposed toll charge
schedule. In setting toll rates, the commission shall give consideration to any recommendations of the citizen advisory
committee. [2002 c 114 § 6.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
47.46.100
47.46.100 Tolls—Setting—Lien on. (1) The commission shall fix the rates of toll and other charges for all toll
bridges built under this chapter that are financed primarily by
bonds issued by the state. Subject to RCW 47.46.090, the
commission may impose and modify toll charges from time
to time as conditions warrant.
(2) In establishing toll charges, the commission shall
give due consideration to any required costs for operating and
maintaining the toll bridge or toll bridges, including the cost
of insurance, and to any amount required by law to meet the
redemption of bonds and interest payments on them.
[Title 47 RCW—page 153]
47.46.105
Title 47 RCW: Public Highways and Transportation
(3) The toll charges must be imposed in amounts sufficient to:
(a) Provide annual revenue sufficient to provide for
annual operating and maintenance expenses, except as provided in RCW 47.56.245;
(b) Make payments required under RCW 47.56.165 and
47.46.140, including insurance costs and the payment of principal and interest on bonds issued for any particular toll
bridge or toll bridges; and
(c) Repay the motor vehicle fund under RCW 47.46.110,
47.56.165, and 47.46.140.
(4) The bond principal and interest payments, including
repayment of the motor vehicle fund for amounts transferred
from that fund to provide for such principal and interest payments, constitute a first direct and exclusive charge and lien
on all tolls and other revenues from the toll bridge concerned,
subject to operating and maintenance expenses. [2002 c 114
§ 7.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
fund have been fully repaid, except as provided in subsection
(2)(b) of this section;
(b) Obligations incurred in constructing that facility have
been fully paid; and
(c) The motor vehicle fund is fully repaid under RCW
47.46.140.
(2) This section does not:
(a) Prohibit the use of toll revenues to fund maintenance,
operations, or management of facilities constructed under
this chapter except as prohibited by RCW 47.56.245;
(b) Require repayment of funds specifically appropriated
as a nonreimbursable state financial contribution to a project.
(3) Notwithstanding the provisions of subsection (2)(a)
of this section, upon satisfaction of the conditions enumerated in subsection (1) of this section:
(a) The facility must be operated as a toll-free facility;
and
(b) The operation, maintenance, upkeep, and repair of
the facility must be paid from funds appropriated for the use
of the department for the construction and maintenance of the
primary state highways of the state of Washington. [2002 c
114 § 8.]
47.46.105
47.46.105 Tolls—Collection. (1) Tolls may be collected by any system that identifies the correct toll and collects the payment. Systems may include manual cash collection, electronic toll collection, and photo monitoring systems.
(a) "Electronic toll collection system" means a system of
collecting tolls or charges that is capable of charging the
account of the toll patron the appropriate toll or charge by
electronic transmission from the motor vehicle to the toll collection system, which information is used to charge the
appropriate toll or charge to the patron's account. The department shall adopt rules that allow an open standard for automatic vehicle identification transponders used for electronic
toll collection to be compatible with other electronic payment
devices or transponders from the Washington state ferry system, other public transportation systems, or other toll collection systems to the extent that technology permits. The rules
must also allow for multiple vendors providing electronic
payment devices or transponders as technology permits.
(b) "Photo monitoring system" means a vehicle sensor
installed to work in conjunction with an electronic toll collection system in a toll facility that automatically produces one
or more photographs, one or more microphotographs, a videotape, or other recorded images of each vehicle at the time it
is used or operated within a toll facility.
(c) No photograph, digital photograph, microphotograph, videotape, or other recorded image may be used for
any purpose other than toll enforcement, nor retained longer
than necessary to verify that tolls are paid, or to enforce toll
evasion violations.
(2) The department shall adopt rules to govern toll collection. [2004 c 230 § 2.]
47.46.110
47.46.110 Tolls—Term, use. (1) The commission shall
retain toll charges on any existing and future facilities constructed under this chapter and financed primarily by bonds
issued by the state until:
(a) All costs of investigation, financing, acquisition of
property, and construction advanced from the motor vehicle
[Title 47 RCW—page 154]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
47.46.120
47.46.120 Toll increases in excess of fiscal growth
factor. Pursuant to RCW 43.135.055, the legislature authorizes the transportation commission to increase bridge tolls in
excess of the fiscal growth factor. [2002 c 114 § 9.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
47.46.130
47.46.130 Use of state bond proceeds. Proceeds of the
sale of bonds issued by the state for projects constructed
under this chapter must be deposited in the state treasury to
the credit of a special account designated for those purposes.
Those proceeds must be expended only for the purposes enumerated in this chapter, for payment of the expense incurred
in the issuance and sale of any such bonds, and to repay the
motor vehicle fund for any sums advanced to pay the cost of
surveys, location, design, development, right-of-way, and
other activities related to the financing and construction of
the bridge and its approaches. [2002 c 114 § 10.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
47.46.140
47.46.140 Repayment of motor vehicle fund from toll
charges. Toll charges must be used to repay the motor vehicle fund consistent with RCW 47.56.165 for any amounts
transferred from the motor vehicle fund to the highway bond
retirement fund under RCW 47.10.847 to provide for bond
retirement and interest on bonds issued for the Tacoma Narrows public-private initiative project. Toll charges must
remain on any facility financed by bonds issued by the state
for a length of time necessary to repay the motor vehicle fund
for any amounts expended from that fund for the design,
development, right-of-way, financing, construction, maintenance, repair, or operation of the toll facility or for amounts
transferred from the motor vehicle fund to the highway bond
retirement fund under RCW 47.10.847 to provide for bond
(2004 Ed.)
Closing Highways and Restricting Traffic
retirement and interest on bonds issued for the Tacoma Narrows public-private initiative project. Funds specifically
appropriated as a nonreimbursable state financial contribution to the project do not require repayment. [2002 c 114 §
12.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
47.46.150
47.46.150 Alteration not a new proposal. If a proposal
is or has been selected for the design, development, construction, maintenance, or operation of transportation systems or
facilities under this chapter, subsequent agreements may be
made to implement portions of the proposal that modify the
proposal or that do not incorporate all the features of the proposal. Any such modified agreement does not require the
solicitation or consideration of additional proposals for all or
any portion of the services rendered under that modified
agreement. Modified agreements may provide for the reimbursement of expenses and fees incurred under earlier agreements. [2002 c 114 § 13.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
47.46.160
47.46.160 Applicable rules and statutes. All projects
designed, constructed, and operated under this chapter must
comply with all applicable rules and statutes in existence at
the time the agreement is executed, including but not limited
to the following provisions: Chapter 39.12 RCW, this title,
*RCW 41.06.380, chapter 47.64 RCW, RCW 49.60.180, and
49 C.F.R. Part 21. [2002 c 114 § 14.]
*Reviser's note: RCW 41.06.380 was repealed by 2002 c 354 § 403,
effective July 1, 2005.
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
47.46.170
47.46.170 Application of RCW 47.46.040 and
47.46.050. RCW 47.46.040 and 47.46.050 apply only to
those agreements that include private sources of financing in
whole or in part. [2002 c 114 § 15.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
Chapter 47.48
47.48.020
Chapter 47.48 RCW
CLOSING HIGHWAYS AND
RESTRICTING TRAFFIC
Sections
47.48.010
47.48.020
47.48.031
47.48.040
47.48.050
Closure or restriction authorized—Restriction for urban public
transportation system use.
Notice of closure or restriction—Emergency closure.
Emergency closures by state patrol.
Penalty.
Transportation of radioactive or hazardous cargo—Definition—Violation, penalty.
Closure of Camas slough: RCW 88.28.055.
47.48.010
47.48.010 Closure or restriction authorized—
Restriction for urban public transportation system use.
Whenever the condition of any state highway, county road, or
city street, either newly or previously constructed, altered,
repaired, or improved, or any part thereof is such that for any
reason its unrestricted use or continued use by vehicles or by
any class of vehicles will greatly damage that state highway,
county road, or city street, or will be dangerous to traffic, or
it is being constructed, altered, repaired, improved, or maintained in such a manner as to require that use of the state
highway, county road, or city street, or any portion thereof be
closed or restricted as to all vehicles or any class of vehicles
for any period of time, the secretary, if it is a state highway,
the county legislative authority, if it is a county road, or the
governing body of any city or town, if it is a city street, is
authorized to close the state highway, county road, or city
street, as the case may be, to travel by all vehicles or by any
class of vehicles, or may declare a lower maximum speed for
any class of vehicles, for such a definite period as it shall
determine. Nothing in the law of this state prevents the secretary, county legislative authority, or governing body of any
city or town from classifying vehicles according to gross
weight, axle weight, height, width, length, braking area, performance, vehicle combinations, or tire equipment for the
purposes of this section, or from restricting the use of any
portion of any state highway, county road, or city street, as
the case may be, to its use by an urban public transportation
system. [1984 c 7 § 238; 1977 ex.s. c 216 § 1; 1967 c 108 §
9; 1961 c 13 § 47.48.010. Prior: 1937 c 53 § 65; RRS § 640065; prior: 1929 c 214 § 1; 1927 c 232 § 1; 1921 c 21 § 1; RRS
§ 6839.]
47.46.180
47.46.180 Legislative oversight committee. A legislative oversight committee is established to monitor and report
on the progress, execution, and efficiency of design-build
contracts issued under this chapter. The legislative oversight
committee will be comprised of one legislator from each caucus of each chamber of the legislature. The leadership of each
caucus shall appoint one member from his or her respective
caucus to serve on the legislative oversight committee authorized by this section. [2002 c 114 § 25.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
47.46.900
47.46.900 Effective date—1993 c 370. This act is necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its
existing public institutions, and shall take effect July 1, 1993.
[1993 c 370 § 7.]
(2004 Ed.)
Severability—1984 c 7: See note following RCW 47.01.141.
Restrictions on public highways to prevent damage: RCW 46.44.080.
Urban public transportation system defined: RCW 47.04.082.
47.48.020
47.48.020 Notice of closure or restriction—Emergency closure. Before any state highway, county road, or
city street is closed to, or the maximum speed limit thereon
reduced for, all vehicles or any class of vehicles, a notice
thereof including the effective date shall be published in one
issue of a newspaper of general circulation in the county or
city or town in which such state highway, county road, or city
street or any portion thereof to be closed is located; and a like
notice shall be posted on or prior to the date of publication of
such notice in a conspicuous place at each end of the state
highway, county road, or city street or portion thereof to be
closed or restricted: PROVIDED, That no such state highway, county road, or city street or portion thereof may be
[Title 47 RCW—page 155]
47.48.031
Title 47 RCW: Public Highways and Transportation
closed sooner than three days after the publication and the
posting of the notice herein provided for: PROVIDED,
HOWEVER, That in cases of emergency or conditions in
which the maximum time the closure will be in effect is
twelve hours or less the proper officers may, without publication or delay, close state highways, county roads, and city
streets temporarily by posting notices at each end of the
closed portion thereof and at all intersecting state highways if
the closing be of a portion of a state highway, at all intersecting state highways and county roads if the closing be a portion of a county road, and at all intersecting city streets if the
closing be of a city street. In all emergency cases or conditions in which the maximum time the closure will be in effect
is twelve hours or less, as herein provided, the orders of the
proper authorities shall be immediately effective. [1982 c
145 § 5; 1977 ex.s. c 216 § 2; 1961 c 13 § 47.48.020. Prior:
1937 c 53 § 66, part; RRS § 6400-66, part; prior: 1921 c 21
§ 2, part; RRS § 6840, part. Formerly RCW 47.48.020 and
47.48.030.]
For the purposes of this section hazardous cargo shall mean
hazardous materials as defined in RCW 70.136.020(1). Violation of an order issued under this section constitutes a misdemeanor. [1983 c 205 § 1.]
Regulations on notice of prohibition on radioactive or hazardous cargo:
RCW 47.01.270.
Chapter 47.50
Chapter 47.50 RCW
HIGHWAY ACCESS MANAGEMENT
Sections
47.50.010
47.50.020
47.50.030
47.50.040
47.50.050
47.50.060
47.50.070
47.50.080
47.50.090
Findings—Access.
Definitions—Access.
Regulating connections.
Access permits.
Permit fee.
Permit review process.
Permit conditions.
Permit removal.
Access management standards.
47.50.010 Findings—Access. (1) The legislature finds
47.50.010
47.48.031
47.48.031 Emergency closures by state patrol. (1)
Whenever the chief or another officer of the state patrol
determines on the basis of a traffic investigation that an emergency exists or less than safe road conditions exist due to
human-caused or natural disasters or extreme weather conditions upon any state highway, or any part thereof, state patrol
officers may determine and declare closures and temporarily
reroute traffic from any such affected highway.
(2) Any alteration of vehicular traffic on any state highway due to closure in emergency conditions is effective until
such alteration has been approved or altered by the secretary
of transportation or other department of transportation
authorities in their local respective jurisdictions.
(3) All state highway closures by officers of the state
patrol shall be immediately reported to the secretary of transportation and to other authorities in their local jurisdictions.
[1981 c 197 § 1.]
47.48.040
47.48.040 Penalty. When any state highway, county
road, or city street or portion thereof shall have been closed,
or when the maximum speed limit thereon shall have been
reduced, for all vehicles or any class of vehicles, as by law
provided, any person, firm or corporation disregarding such
closing or reduced speed limit shall be guilty of a misdemeanor, and shall in addition to any penalty for violation of
the provisions of this section, be liable in any civil action
instituted in the name of the state of Washington or the
county or city or town having jurisdiction for any damages
occasioned to such state highway, county road, or city street,
as the case may be, as the result of disregarding such closing
or reduced speed limit. [1977 ex.s. c 216 § 3; 1961 c 13 §
47.48.040. Prior: 1937 c 53 § 67; RRS § 6400-67; prior:
1921 c 21 § 3; RRS § 6841.]
47.48.050
47.48.050 Transportation of radioactive or hazardous cargo—Definition—Violation, penalty. The chief or
other officer of the Washington state patrol may prohibit the
transportation of placarded radioactive or hazardous cargo
over the highways of the state, or a portion thereof, if weather
or other conditions create a substantial risk to public safety.
[Title 47 RCW—page 156]
that:
(a) Regulation of access to the state highway system is
necessary in order to protect the public health, safety, and
welfare, to preserve the functional integrity of the state highway system, and to promote the safe and efficient movement
of people and goods within the state;
(b) The development of an access management program,
in accordance with this chapter, which coordinates land use
planning decisions by local governments and investments in
the state highway system, will serve to control the proliferation of connections and other access approaches to and from
the state highway system. Without such a program, the
health, safety, and welfare of the residents of this state are at
risk, due to the fact that uncontrolled access to the state highway system is a significant contributing factor to the congestion and functional deterioration of the system; and
(c) The development of an access management program
in accordance with this chapter will enhance the development
of an effective transportation system and increase the trafficcarrying capacity of the state highway system and thereby
reduce the incidences of traffic accidents, personal injury,
and property damage or loss; mitigate environmental degradation; promote sound economic growth and the growth
management goals of the state; reduce highway maintenance
costs and the necessity for costly traffic operations measures;
lengthen the effective life of transportation facilities in the
state, thus preserving the public investment in such facilities;
and shorten response time for emergency vehicles.
(2) In furtherance of these findings, all state highways
are hereby declared to be controlled access facilities as
defined in RCW 47.50.020, except those highways that are
defined as limited access facilities in chapter 47.52 RCW.
(3) It is the policy of the legislature that:
(a) The access rights of an owner of property abutting the
state highway system are subordinate to the public's right and
interest in a safe and efficient highway system; and
(b) Every owner of property which abuts a state highway
has a right to reasonable access to that highway, unless such
access has been acquired pursuant to chapter 47.52 RCW, but
may not have the right of a particular means of access. The
right of access to the state highway may be restricted if, pur(2004 Ed.)
Highway Access Management
suant to local regulation, reasonable access can be provided
to another public road which abuts the property.
(4) The legislature declares that it is the purpose of this
chapter to provide a coordinated planning process for the permitting of access points on the state highway system to effectuate the findings and policies under this section.
(5) Nothing in this chapter shall affect the right to full
compensation under section 16, Article I of the state Constitution. [1991 c 202 § 1.]
Captions not law—1991 c 202: "Section captions and part headings as
used in this act do not constitute any part of the law." [1991 c 202 § 22.]
Effective date—1991 c 202: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1,
1991." [1991 c 202 § 24.]
Severability—1991 c 202: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1991 c 202 § 25.]
47.50.020
47.50.020 Definitions—Access. Unless the context
clearly requires otherwise, the definitions in this section
apply throughout this chapter.
(1) "Controlled access facility" means a transportation
facility to which access is regulated by the governmental
entity having jurisdiction over the facility. Owners or occupants of abutting lands and other persons have a right of
access to or from such facility at such points only and in such
manner as may be determined by the governmental entity.
(2) "Connection" means approaches, driveways, turnouts, or other means of providing for the right of access to or
from controlled access facilities on the state highway system.
(3) "Permitting authority" means the department for connections in unincorporated areas or a city or town within
incorporated areas which are authorized to regulate access to
state highways pursuant to chapter 47.24 RCW. [1991 c 202
§ 2.]
Captions not law—Effective date—Severability—1991 c 202: See
notes following RCW 47.50.010.
47.50.030
47.50.030 Regulating connections. (1) Vehicular
access and connections to or from the state highway system
shall be regulated by the permitting authority in accordance
with the provisions of this chapter in order to protect the public health, safety, and welfare.
(2) The department shall by July 1, 1992, adopt administrative procedures pursuant to chapter 34.05 RCW which
establish state highway access standards and rules for its issuance and modification of access permits, closing of unpermitted connections, revocation of permits, and waiver provisions
in accordance with this chapter. The department shall consult
with the association of Washington cities and obtain concurrence of the city design standards committee as established
by RCW 35.78.030 in the development and adoption of rules
for access standards for city streets designated as state highways under chapter 47.24 RCW.
(3) Cities and towns shall, no later than July 1, 1993,
adopt standards for access permitting on streets designated as
state highways which meet or exceed the department's standards, provided that such standards may not be inconsistent
with standards adopted by the department. [1991 c 202 § 3.]
(2004 Ed.)
47.50.070
Captions not law—Effective date—Severability—1991 c 202: See
notes following RCW 47.50.010.
47.50.040
47.50.040 Access permits. (1) No connection to a state
highway shall be constructed or altered without obtaining an
access permit in accordance with this chapter in advance of
such action. A permitting authority has the authority to deny
access to the state highway system at the location specified in
the permit until the permittee constructs or alters the connection in accordance with the permit requirements.
(2) The cost of construction or alteration of a connection
shall be borne by the permittee, except for alterations which
are not required by law or administrative rule, but are made at
the request of and for the convenience of the permitting
authority. The permittee, however, shall bear the cost of alteration of any connection which is required by the permitting
authority due to increased or altered traffic flows generated
by changes in the permittee's facilities or nature of business
conducted at the location specified in the permit.
(3) Except as otherwise provided in this chapter, an
unpermitted connection is subject to closure by the appropriate permitting authority which shall have the right to install
barriers across or remove the connection. When the permitting authority determines that a connection is unpermitted
and subject to closure, it shall provide reasonable notice of its
impending action to the owner of property served by the connection. The permitting authority's procedures for providing
notice and preventing the operation of unpermitted connections shall be adopted by rule. [1991 c 202 § 4.]
Captions not law—Effective date—Severability—1991 c 202: See
notes following RCW 47.50.010.
47.50.050
47.50.050 Permit fee. The department shall establish
by rule a schedule of fees for permit applications made to the
department. The fee shall be nonrefundable and shall be used
only to offset the costs of administering the access permit
review process and the costs associated with administering
the provisions of this chapter. [1991 c 202 § 5.]
Captions not law—Effective date—Severability—1991 c 202: See
notes following RCW 47.50.010.
47.50.060
47.50.060 Permit review process. The review process
for access permit applications made by the department shall
be as follows: Any person seeking an access permit shall file
an application with the department. The department by rule
shall establish application form and content requirements.
The fee required by RCW 47.50.050 must accompany the
applications. [1991 c 202 § 6.]
Captions not law—Effective date—Severability—1991 c 202: See
notes following RCW 47.50.010.
47.50.070
47.50.070 Permit conditions. The permitting authority
may issue a permit subject to any conditions necessary to
carry out the provisions of this chapter, including, but not
limited to, requiring the use of a joint-use connection. The
permitting authority may revoke a permit if the applicant fails
to comply with the conditions upon which the issuance of the
permit was predicated. [1991 c 202 § 7.]
Captions not law—Effective date—Severability—1991 c 202: See
notes following RCW 47.50.010.
[Title 47 RCW—page 157]
47.50.080
Title 47 RCW: Public Highways and Transportation
47.50.080
47.50.080 Permit removal. (1) Unpermitted connections to the state highway system in existence on July 1,
1990, shall not require the issuance of a permit and may continue to provide access to the state highway system, unless
the permitting authority determines that such a connection
does not meet minimum acceptable standards of highway
safety. However, a permitting authority may require that a
permit be obtained for such a connection if a significant
change occurs in the use, design, or traffic flow of the connection or of the state highway to which it provides access. If
a permit is not obtained, the connection may be closed pursuant to RCW 47.50.040.
(2) Access permits granted prior to adoption of the permitting authorities' standards shall remain valid until modified or revoked. Access connections to state highways identified on plats and subdivisions approved prior to July 1, 1991,
shall be deemed to be permitted pursuant to chapter 202,
Laws of 1991. The permitting authority may, after written
notification, under rules adopted in accordance with RCW
47.50.030, modify or revoke an access permit granted prior to
adoption of the standards by requiring relocation, alteration,
or closure of the connection if a significant change occurs in
the use, design, or traffic flow of the connection.
(3) The permitting authority may issue a nonconforming
access permit after finding that to deny an access permit
would leave the property without a reasonable means of
access to the public roads of this state. Every nonconforming
access permit shall specify limits on the maximum vehicular
use of the connection and shall be conditioned on the availability of future alternative means of access for which access
permits can be obtained. [1991 c 202 § 8.]
Captions not law—Effective date—Severability—1991 c 202: See
notes following RCW 47.50.010.
47.50.090
47.50.090 Access management standards. (1) The
department shall develop, adopt, and maintain an access control classification system for all routes on the state highway
system, the purpose of which shall be to provide for the
implementation and continuing applications of the provision
of this chapter.
(2) The principal component of the access control classification system shall be access management standards, the
purpose of which shall be to provide specific minimum standards to be adhered to in the planning for and approval of
access to state highways.
(3) The control classification system shall be developed
consistent with the following:
(a) The department shall, no later than January 1, 1993,
adopt rules setting forth procedures governing the implementation of the access control classification system required by
this chapter. The rule shall provide for input from the entities
described in (b) of this subsection as well as for public meetings to discuss the access control classification system. Nothing in this chapter shall affect the validity of the department's
existing or subsequently adopted rules concerning access to
the state highway system. Such rules shall remain in effect
until repealed or replaced by the rules required by this chapter.
(b) The access control classification system shall be
developed in cooperation with counties, cities and towns, the
department of community, trade, and economic development,
[Title 47 RCW—page 158]
regional transportation planning organizations, and other
local governmental entities, and for city streets designated as
state highways pursuant to chapter 47.24 RCW, adopted with
the concurrence of the city design standards committee.
(c) The rule required by this section shall provide that
assignment of a road segment to a specific access category be
made in consideration of the following criteria:
(i) Local land use plans and zoning, as set forth in comprehensive plans;
(ii) The current functional classification as well as potential future functional classification of each road on the state
highway system;
(iii) Existing and projected traffic volumes;
(iv) Existing and projected state, local, and metropolitan
planning organization transportation plans and needs;
(v) Drainage requirements;
(vi) The character of lands adjoining the highway;
(vii) The type and volume of traffic requiring access;
(viii) Other operational aspects of access;
(ix) The availability of reasonable access by way of
county roads and city streets to a state highway; and
(x) The cumulative effect of existing and projected connections on the state highway system's ability to provide for
the safe and efficient movement of people and goods within
the state.
(d) Access management standards shall include, but not
be limited to, connection location standards, safety factors,
design and construction standards, desired levels of service,
traffic control devices, and effective maintenance of the
roads. The standards shall also contain minimum requirements for the spacing of connections, intersecting streets,
roads, and highways.
(e) An access control category shall be assigned to each
segment of the state highway system by July 1, 1993. [1995
c 399 § 124; 1991 c 202 § 9.]
Captions not law—Effective date—Severability—1991 c 202: See
notes following RCW 47.50.010.
Chapter 47.52
Chapter 47.52 RCW
LIMITED ACCESS FACILITIES
Sections
47.52.001
47.52.010
47.52.011
47.52.020
47.52.025
47.52.026
47.52.027
47.52.040
47.52.041
47.52.042
47.52.050
47.52.060
47.52.070
47.52.080
47.52.090
47.52.100
Declaration of policy.
"Limited access facility" defined.
"Existing highway" defined.
Powers of highway authorities—State facility, county road
crossings.
Additional powers—Controlling use of limited access facilities—High-occupancy vehicle lanes.
Rules—Control of vehicles entering—Ramp closure, metering, or restrictions—Notice.
Standards and rules for interstate and defense highways—
Construction, maintenance, access.
Design—Entrance and exit restricted—Closure of intersecting
roads.
Closure of intersecting roads—Rights of abutters.
Closure of intersecting roads—Other provisions not affected.
Acquisition of property.
Court process expedited.
Establishment of facility—Grade separation—Service roads.
Abutter's right of access protected—Compensation.
Cooperative agreements—Urban public transportation systems—Title to highway—Traffic regulations—Underground utilities and overcrossings—Passenger transportation—Storm sewers—City street crossings.
Existing roads and streets as service roads.
(2004 Ed.)
Limited Access Facilities
47.52.105
47.52.110
47.52.120
47.52.121
47.52.131
47.52.133
47.52.134
47.52.135
47.52.137
47.52.139
47.52.145
47.52.150
47.52.160
47.52.170
47.52.180
47.52.190
47.52.195
47.52.200
47.52.210
47.52.220
Acquisition and construction to preserve limited access or
reduce required compensation.
Marking of facility with signs.
Violations specified—Exceptions—Penalty.
Prior determinations validated.
Consideration of local conditions—Report to local authorities—Conferences—Proposed plan.
Local public hearing—Notices.
When access reports and hearings not required.
Hearing procedure.
Adoption of plan—Service of findings and order—Publication
of resume—Finality—Review.
Local approval of plan—Disapproval, request for review.
Modification of adopted plan without further public hearings,
when.
State facility through city or town—Board of review, composition and appointment.
State facility through city or town—Hearing—Notice—Evidence—Determination of issues.
State facility through city or town—Hearing—Procedure.
State facility through city or town—Hearing—Findings of
board—Modification of proposed plan by stipulation.
State facility through city or town—Hearing—Assistants—
Costs—Reporter.
Review and appeal on petition of abutter.
Law enforcement jurisdiction within city or town.
State facility within city or town—Title to city or town streets
incorporated therein.
Personal wireless service facilities—Approach permit—
Report.
Description, plans of highways, filing: RCW 47.28.025, 47.28.026.
Port districts, toll facilities: Chapter 53.34 RCW.
Speed limits on limited access facilities: RCW 46.61.430.
47.52.001 Declaration of policy. (1) Unrestricted
access to and from public highways has resulted in congestion and peril for the traveler. It has caused undue slowing of
all traffic in many areas. The investment of the public in
highway facilities has been impaired and highway facilities
costing vast sums of money will have to be relocated and
reconstructed.
(2) Personal wireless service is a critical part of the
state's infrastructure. The rapid deployment of personal wireless service facilities is critical to ensure public safety, network access, quality of service, and rural economic development.
(3) It is, therefore, the declared policy of this state to
limit access to the highway facilities of this state in the interest of highway safety and for the preservation of the investment of the public in such facilities, and to assure that the use
of rights of way of limited access facilities accommodate the
deployment of personal wireless service facilities consistent
with these interests. [2004 c 131 § 1; 1961 c 13 § 47.52.001.
Prior: 1951 c 167 § 1.]
47.52.001
47.52.010 "Limited access facility" defined. For the
purposes of this chapter, a "limited access facility" is defined
as a highway or street especially designed or designated for
through traffic, and over, from, or to which owners or occupants of abutting land, or other persons, have no right or easement, or only a limited right or easement of access, light, air,
or view by reason of the fact that their property abuts upon
such limited access facility, or for any other reason to accomplish the purpose of a limited access facility. Such highways
or streets may be parkways, from which vehicles forming
part of an urban public transportation system, trucks, buses,
or other commercial vehicles may be excluded; or they may
be freeways open to use by all customary forms of street and
highway traffic, including vehicles forming a part of an urban
47.52.010
(2004 Ed.)
47.52.025
public transportation system. [1967 c 108 § 10; 1961 c 13 §
47.52.010. Prior: 1951 c 167 § 2; 1947 c 202 § 1; Rem. Supp.
1947 § 6402-60.]
Urban public transportation system defined: RCW 47.04.082.
47.52.011
47.52.011 "Existing highway" defined. For the purposes of this chapter, the term "existing highway" shall
include all highways, roads and streets duly established, constructed, and in use. It shall not include new highways, roads
or streets, or relocated highways, roads or streets, or portions
of existing highways, roads or streets which are relocated.
[1961 c 13 § 47.52.011. Prior: 1951 c 167 § 3.]
47.52.020
47.52.020 Powers of highway authorities—State
facility, county road crossings. The highway authorities of
the state, counties, and incorporated cities and towns, acting
alone or in cooperation with each other, or with any federal,
state, or local agency, or any other state having authority to
participate in the construction and maintenance of highways,
may plan, designate, establish, regulate, vacate, alter,
improve, construct, maintain, and provide limited access
facilities for public use wherever the authority or authorities
are of the opinion that traffic conditions, present or future,
will justify the special facilities. However, upon county roads
within counties, the state or county authorities are subject to
the consent of the county legislative authority, except that
where a state limited access facility crosses a county road the
department may, without the consent of the county legislative
authority, close off the county road so that it will not intersect
such limited access facility.
The department may, in constructing or relocating any
state highway, cross any county road at grade without obtaining the consent of the county legislative authority, and in so
doing may revise the alignment of the county road to the
extent that the department finds necessary for reasons of traffic safety or practical engineering considerations. [1984 c 7
§ 239; 1961 c 13 § 47.52.020. Prior: 1957 c 235 § 2; prior:
1953 c 30 § 1; 1951 c 167 § 4; 1947 c 202 § 2, part; Rem.
Supp. 1947 § 6402-61, part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.52.025
47.52.025 Additional powers—Controlling use of
limited access facilities—High-occupancy vehicle lanes.
Highway authorities of the state, counties, and incorporated
cities and towns, in addition to the specific powers granted in
this chapter, shall also have, and may exercise, relative to
limited access facilities, any and all additional authority, now
or hereafter vested in them relative to highways or streets
within their respective jurisdictions, and may regulate,
restrict, or prohibit the use of such limited access facilities by
various classes of vehicles or traffic. Such highway authorities may reserve any limited access facility or portions
thereof, including designated lanes or ramps for the exclusive
or preferential use of public transportation vehicles, privately
owned buses, or private motor vehicles carrying not less than
a specified number of passengers when such limitation will
increase the efficient utilization of the highway facility or
will aid in the conservation of energy resources. Regulations
authorizing such exclusive or preferential use of a highway
facility may be declared to be effective at all time or at spec[Title 47 RCW—page 159]
47.52.026
Title 47 RCW: Public Highways and Transportation
ified times of day or on specified days. [1974 ex.s. c 133 § 1;
1961 c 13 § 47.52.025. Prior: 1957 c 235 § 3; prior: 1951 c
167 § 5; 1947 c 202 § 2, part; Rem. Supp. 1947 § 6402-61,
part.]
High-occupancy vehicle lanes: RCW 46.61.165.
47.52.026
47.52.026 Rules—Control of vehicles entering—
Ramp closure, metering, or restrictions—Notice. (1) The
department may adopt rules for the control of vehicles entering any state limited access highway as it deems necessary (a)
for the efficient or safe flow of traffic traveling upon any part
of the highway or connections with it or (b) to avoid exceeding federal, state, or regional air pollution standards either
along the highway corridor or within an urban area served by
the highway.
(2) Rules adopted by the department pursuant to subsection (1) of this section may provide for the closure of highway ramps or the metering of vehicles entering highway
ramps or the restriction of certain classes of vehicles entering
highway ramps (including vehicles with less than a specified
number of passengers), and any such restrictions may vary at
different times as necessary to achieve the purposes mentioned in subsection (1) of this section.
(3) Vehicle restrictions authorized by rules adopted pursuant to this section are effective when proper notice is given
by any police officer, or by appropriate signals, signs, or
other traffic control devices. [1984 c 7 § 240; 1974 ex.s. c
133 § 3.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.52.027
47.52.027 Standards and rules for interstate and
defense highways—Construction, maintenance, access.
The secretary of transportation may adopt design standards,
rules, and regulations relating to construction, maintenance,
and control of access of the national system of interstate and
defense highways within this state as it deems advisable to
properly control access thereto, to preserve the traffic-carrying capacity of such highways, and to provide the maximum
degree of safety to users thereof. In adopting such standards,
rules, and regulations the secretary shall take into account the
policies, rules, and regulations of the United States secretary
of commerce and the federal highway administration relating
to the construction, maintenance, and operation of the system
of interstate and defense highways. The standards, rules, and
regulations so adopted by the secretary shall constitute the
public policy of this state and shall have the force and effect
of law. [1977 ex.s. c 151 § 62; 1961 c 13 § 47.52.027. Prior:
1959 c 319 § 35. Formerly RCW 47.28.160.]
Nonmotorized traffic may be prohibited: RCW 46.61.160.
47.52.040
47.52.040 Design—Entrance and exit restricted—
Closure of intersecting roads. The highway authorities of
the state, counties and incorporated cities and towns may so
design any limited access facility and so regulate, restrict, or
prohibit access as to best serve the traffic for which such
facility is intended; and the determination of design by such
authority shall be conclusive and final. In this connection
such highway authorities may divide and separate any limited
access facility into separate roadways by the construction of
raised curbings, central dividing sections, or other physical
[Title 47 RCW—page 160]
separations, or by designating such separate roadways by
signs, markers, stripes, and the proper lane for such traffic by
appropriate signs, markers, stripes and other devices. No person shall have any right of ingress or egress to, from, or
across limited access facilities to or from abutting lands,
except at designated points at which access may be permitted
by the highway authorities upon such terms and conditions as
may be specified from time to time: PROVIDED, That any
intersecting streets, roads or highways, not made a part of
such facility, shall be deemed closed at the right of way line
by the designation and construction of said facility and without the consent of any other party or the necessity of any
other legal proceeding for such closing, notwithstanding any
laws to the contrary. [1961 c 13 § 47.52.040. Prior: 1955 c
75 § 1; 1947 c 202 § 3; Rem. Supp. 1947 § 6402-62.]
47.52.041
47.52.041 Closure of intersecting roads—Rights of
abutters. No person, firm or corporation, private or municipal, shall have any claim against the state, city or county by
reason of the closing of such streets, roads or highways as
long as access still exists or is provided to such property abutting upon the closed streets, roads or highways. Circuity of
travel shall not be a compensable item of damage. [1961 c 13
§ 47.52.041. Prior: 1955 c 75 § 2.]
47.52.042
47.52.042 Closure of intersecting roads—Other provisions not affected. RCW 47.52.040 and 47.52.041 shall
not be construed to affect provisions for establishment,
notice, hearing and court review of any decision establishing
a limited access facility on an existing highway pursuant to
chapter 47.52 RCW. [1961 c 13 § 47.52.042. Prior: 1955 c
75 § 3.]
47.52.050
47.52.050 Acquisition of property. (1) For the purpose
of this chapter the highway authorities of the state, counties
and incorporated cities and towns, respectively, or in cooperation one with the other, may acquire private or public property and property rights for limited access facilities and service roads, including rights of access, air, view and light, by
gift, devise, purchase, or condemnation, in the same manner
as such authorities are now or hereafter may be authorized by
law to acquire property or property rights in connection with
highways and streets within their respective jurisdictions.
Except as otherwise provided in subsection (2) of this section
all property rights acquired under the provisions of this chapter shall be in fee simple. In the acquisition of property or
property rights for any limited access facility or portion
thereof, or for any service road in connection therewith, the
state, county, incorporated city and town authority may, in its
discretion, acquire an entire lot, block or tract of land, if by so
doing the interest of the public will be best served, even
though said entire lot, block or tract is not immediately
needed for the limited access facility.
(2) The highway authorities of the state, counties, and
incorporated cities and towns may acquire by gift, devise,
purchase, or condemnation a three dimensional air space corridor in fee simple over or below the surface of the ground,
together with such other property in fee simple and other
property rights as are needed for the construction and opera(2004 Ed.)
Limited Access Facilities
tion of a limited access highway facility, but only if the
acquiring authority finds that the proposal will not:
(a) impair traffic safety on the highway or interfere with
the free flow of traffic; or
(b) permit occupancy or use of the air space above or
below the highway which is hazardous to the operation of the
highway. [1971 ex.s. c 39 § 1; 1961 c 13 § 47.52.050. Prior:
1947 c 202 § 4; Rem. Supp. 1947 § 6402-63.]
Award of costs in air space corridor acquisitions: RCW 8.25.073.
Right of way donations: Chapter 47.14 RCW.
47.52.060
47.52.060 Court process expedited. Court proceedings necessary to acquire property or property rights for purposes of this chapter shall take precedence over all other
causes not involving the public interest in all courts to the end
that the provision for limited access facilities may be expedited. [1961 c 13 § 47.52.060. Prior: 1947 c 202 § 5; Rem.
Supp. 1947 § 6402-64.]
47.52.070
47.52.070 Establishment of facility—Grade separation—Service roads. The designation or establishment of a
limited access facility shall, by the authority making the designation or establishment, be entered upon the records or
minutes of such authority in the customary manner for the
keeping of such records or minutes. The state, counties and
incorporated cities and towns may provide for the elimination
of intersections at grade of limited access facilities with existing state or county roads, and with city or town streets, by
grade separation or service road, or by closing off such roads
and streets at the right of way boundary line of such limited
access facility; and after the establishment of any such facility, no highway or street which is not part of said facility,
shall intersect the same at grade. No city or town street,
county road, or state highway, or any other public or private
way, shall be opened into or connect with any such limited
access facility without the consent and previous approval of
the highway authority of the state, county, incorporated city
or town having jurisdiction over such limited access facility.
Such consent and approval shall be given only if the public
interest shall be served thereby. [1961 c 13 § 47.52.070.
Prior: 1951 c 167 § 10; 1947 c 202 § 6; Rem. Supp. 1947 §
6402-65.]
47.52.080
47.52.080 Abutter's right of access protected—Compensation. No existing public highway, road, or street shall
be constructed as a limited access facility except upon the
waiver, purchase, or condemnation of the abutting owner's
right of access thereto as herein provided. In cases involving
existing highways, if the abutting property is used for business at the time the notice is given as provided in RCW
47.52.133, the owner of such property shall be entitled to
compensation for the loss of adequate ingress to or egress
from such property as business property in its existing condition at the time of the notice provided in RCW 47.52.133 as
for the taking or damaging of property for public use. [1983
c 3 § 127; 1961 c 13 § 47.52.080. Prior: 1955 c 54 § 2; 1951
c 167 § 11; 1947 c 202 § 7; Rem. Supp. 1947 § 6402-66.]
47.52.090
47.52.090 Cooperative agreements—Urban public
transportation systems—Title to highway—Traffic regu(2004 Ed.)
47.52.090
lations—Underground utilities and overcrossings—Passenger transportation—Storm sewers—City street crossings. The highway authorities of the state, counties, incorporated cities and towns, and municipal corporations owning or
operating an urban public transportation system are authorized to enter into agreements with each other, or with the
federal government, respecting the financing, planning,
establishment, improvement, construction, maintenance, use,
regulation, or vacation of limited access facilities in their
respective jurisdictions to facilitate the purposes of this chapter. Any such agreement may provide for the exclusive or
nonexclusive use of a portion of the facility by street cars,
trains, or other vehicles forming a part of an urban public
transportation system and for the erection, construction, and
maintenance of structures and facilities of such a system
including facilities for the receipt and discharge of passengers. Within incorporated cities and towns the title to every
state limited access highway vests in the state, and, notwithstanding any other provision of this section, the department
shall exercise full jurisdiction, responsibility, and control to
and over the highway from the time it is declared to be operational as a limited access facility by the department, subject
to the following provisions:
(1) Cities and towns shall regulate all traffic restrictions
on such facilities except as provided in RCW 46.61.430, and
all regulations adopted are subject to approval of the department before becoming effective. Nothing herein precludes
the state patrol or any county, city, or town from enforcing
any traffic regulations and restrictions prescribed by state
law, county resolution, or municipal ordinance.
(2) The city, town, or franchise holder shall at its own
expense maintain its underground facilities beneath the surface across the highway and has the right to construct additional facilities underground or beneath the surface of the
facility or necessary overcrossings of power lines and other
utilities as may be necessary insofar as the facilities do not
interfere with the use of the right of way for limited access
highway purposes. The city or town has the right to maintain
any municipal utility and the right to open the surface of the
highway. The construction, maintenance until permanent
repair is made, and permanent repair of these facilities shall
be done in a time and manner authorized by permit to be
issued by the department or its authorized representative,
except to meet emergency conditions for which no permit
will be required, but any damage occasioned thereby shall
promptly be repaired by the city or town itself, or at its direction. Where a city or town is required to relocate overhead
facilities within the corporate limits of a city or town as a
result of the construction of a limited access facility, the cost
of the relocation shall be paid by the state.
(3) Cities and towns have the right to grant utility franchises crossing the facility underground and beneath its surface insofar as the franchises are not inconsistent with the use
of the right of way for limited access facility purposes and the
franchises are not in conflict with state laws. The department
is authorized to enforce, in an action brought in the name of
the state, any condition of any franchise that a city or town
has granted. No franchise for transportation of passengers in
motor vehicles may be granted on such highways without the
approval of the department, except cities and towns are not
required to obtain a franchise for the operation of municipal
[Title 47 RCW—page 161]
47.52.100
Title 47 RCW: Public Highways and Transportation
vehicles or vehicles operating under franchises from the city
or town operating within the corporate limits of a city or town
and within a radius not exceeding eight miles outside the corporate limits for public transportation on such facilities, but
these vehicles may not stop on the limited access portion of
the facility to receive or to discharge passengers unless
appropriate special lanes or deceleration, stopping, and acceleration space is provided for the vehicles.
Every franchise or permit granted any person by a city or
town for use of any portion of a limited access facility shall
require the grantee or permittee to restore, permanently
repair, and replace to its original condition any portion of the
highway damaged or injured by it. Except to meet emergency
conditions, the construction and permanent repair of any limited access facility by the grantee of a franchise shall be in a
time and manner authorized by a permit to be issued by the
department or its authorized representative.
(4) The department has the right to use all storm sewers
that are adequate and available for the additional quantity of
run-off proposed to be passed through such storm sewers.
(5) The construction and maintenance of city streets over
and under crossings and surface intersections of the limited
access facility shall be in accordance with the governing policy entered into between the department and the association
of Washington cities on June 21, 1956, or as such policy may
be amended by agreement between the department and the
association of Washington cities. [1984 c 7 § 241; 1977 ex.s.
c 78 § 8; 1967 c 108 § 11; 1961 c 13 § 47.52.090. Prior: 1957
c 235 § 4; 1947 c 202 § 8; Rem. Supp. 1947 § 6402-67.]
Severability—1984 c 7: See note following RCW 47.01.141.
Urban public transportation system defined: RCW 47.04.082.
47.52.100
47.52.100 Existing roads and streets as service roads.
In connection with the development of any limited access
facility the state, county or incorporated city or town highway
authorities are authorized to plan, designate, establish, use,
regulate, alter, improve, construct, maintain and vacate local
service roads and streets, or to designate as local service
roads and streets any existing road or street, and to exercise
jurisdiction over service roads in the same manner as is
authorized for limited access facilities under the terms of this
chapter. If, in their opinion such local service roads and
streets are necessary or desirable, such local service roads or
streets shall be separated from the limited access facility by
such means or devices designated as necessary or desirable
by the proper authority. [1961 c 13 § 47.52.100. Prior: 1947
c 202 § 9; Rem. Supp. 1947 § 6402-68.]
47.52.105
47.52.105 Acquisition and construction to preserve
limited access or reduce required compensation. Whenever, in the opinion of the department, frontage or service
roads in connection with limited access facilities are not feasible either from an engineering or economic standpoint, the
department may acquire private or public property by purchase or condemnation and construct any road, street, or
highway connecting to or leading into any other road, street,
or highway, when by so doing, it will preserve a limited
access facility or reduce compensation required to be paid to
an owner by reason of reduction in or loss of access. The
department shall provide by agreement with a majority of the
[Title 47 RCW—page 162]
legislative authority of the county or city concerned as to
location, future maintenance, and control of any road, street,
or highway to be so constructed. The road, street, or highway
need not be made a part of the state highway system or connected thereto, but may upon completion by the state be
turned over to the county or city for location, maintenance,
and control pursuant to the agreement as part of the system of
county roads or city streets. [1984 c 7 § 242; 1967 c 117 § 1;
1961 c 13 § 47.52.105. Prior: 1955 c 63 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.52.110
47.52.110 Marking of facility with signs. After the
opening of any new and additional limited access highway
facility, or after the designation and establishment of any
existing street or highway, as included the particular highways and streets or those portions thereof designated and
established, shall be physically marked and indicated as follows: By the erection and maintenance of such signs as in the
opinion of the respective authorities may be deemed proper,
indicating to drivers of vehicles that they are entering a limited access area and that they are leaving a limited access
area. [1961 c 13 § 47.52.110. Prior: 1947 c 202 § 10; Rem.
Supp. 1947 § 6402-69.]
47.52.120
47.52.120 Violations specified—Exceptions—Penalty. (1) After the opening of any limited access highway
facility, it shall be unlawful for any person to: (a) Drive a
vehicle over, upon, or across any curb, central dividing section, or other separation or dividing line on limited access
facilities; (b) make a left turn or semicircular or U-turn except
through an opening provided for that purpose in the dividing
curb section, separation, or line; (c) drive any vehicle except
in the proper lane provided for that purpose and in the proper
direction and to the right of the central dividing curb, separation section, or line; (d) drive any vehicle into the limited
access facility from a local service road except through an
opening provided for that purpose in the dividing curb, dividing section, or dividing line which separates such service
road from the limited access facility proper; (e) stop or park
any vehicle or equipment within the right of way of such
facility, including the shoulders thereof, except at points specially provided therefor, and to make only such use of such
specially provided stopping or parking points as is permitted
by the designation thereof: PROVIDED, That this subsection
(1)(e) shall not apply to authorized emergency vehicles, law
enforcement vehicles, assistance vans, or to vehicles stopped
for emergency causes or equipment failures; (f) travel to or
from such facility at any point other than a point designated
by the establishing authority as an approach to the facility or
to use an approach to such facility for any use in excess of
that specified by the establishing authority.
(2) For the purposes of this section, an assistance van is
a vehicle rendering aid free of charge to vehicles with equipment or fuel problems. The state patrol shall establish by rule
additional standards and operating procedures, as needed, for
assistance vans.
(3) Any person who violates this section is guilty of a
misdemeanor and upon arrest and conviction therefor shall be
punished by a fine of not less than five dollars nor more than
one hundred dollars, or by imprisonment in the city or county
(2004 Ed.)
Limited Access Facilities
jail for not less than five days nor more than ninety days, or
by both fine and imprisonment.
(4) Nothing contained in this section prevents the highway authority from proceeding to enforce the prohibitions or
limitations of access to such facilities by injunction or as otherwise provided by law. [2003 c 53 § 262; 1987 c 330 § 748;
1985 c 149 § 1; 1961 c 13 § 47.52.120. Prior: 1959 c 167 §
1; 1947 c 202 § 11; Rem. Supp. 1947 § 6402-70.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
Construction—Application of rules—Severability—1987 c 330: See
notes following RCW 28B.12.050.
47.52.121
47.52.121 Prior determinations validated. Any determinations of an authority establishing a limited access facility subsequent to March 19, 1947, and prior to March 16,
1951, in connection with new highways, roads or streets, or
relocated highways, roads or streets, or portions of existing
highways, roads or streets which are relocated, and all
acquirements of property or access rights in connection therewith are hereby validated, ratified, approved and confirmed,
notwithstanding any lack of power (other than constitutional)
of such authority, and notwithstanding any defects or irregularities (other than constitutional) in such proceedings. [1961
c 13 § 47.52.121. Prior: 1951 c 167 § 12.]
47.52.131
47.52.131 Consideration of local conditions—Report
to local authorities—Conferences—Proposed plan. When
the department is planning a limited access facility through a
county or an incorporated city or town, the department or its
staff, before any hearing, shall give careful consideration to
available data as to the county or city's comprehensive plan,
land use pattern, present and potential traffic volume of
county roads and city streets crossing the proposed facility,
origin and destination traffic surveys, existing utilities, the
physical appearance the facility will present, and other pertinent surveys and, except as provided in RCW 47.52.134,
shall submit to the county and city officials for study a report
showing how these factors have been taken into account and
how the proposed plan for a limited access facility will serve
public convenience and necessity, together with the locations
and access and egress plans, and over and under crossings
that are under consideration. This report shall show the proposed approximate right of way limits and profile of the facility with relation to the existing grade, and shall discuss in a
general manner plans for landscaping treatment, fencing, and
illumination, and shall include sketches of typical roadway
sections for the roadway itself and any necessary structures
such as viaducts or bridges, subways, or tunnels.
Conferences shall be held on the merits of this state
report and plans and any proposed modification or alternate
proposal of the county, city, or town in order to attempt to
reach an agreement between the department and the county or
city officials. As a result of the conference, the proposed
plan, together with any modifications, shall be prepared by
the department and presented to the county or city for inspection and study. [1987 c 200 § 1; 1984 c 7 § 243; 1965 ex.s. c
75 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
(2004 Ed.)
47.52.135
47.52.133
47.52.133 Local public hearing—Notices. Except as
provided in RCW 47.52.134, the transportation commission
and the highway authorities of the counties and incorporated
cities and towns, with regard to facilities under their respective jurisdictions, prior to the establishment of any limited
access facility, shall hold a public hearing within the county,
city, or town wherein the limited access facility is to be established to determine the desirability of the plan proposed by
such authority. Notice of such hearing shall be given to the
owners of property abutting the section of any existing highway, road, or street being established as a limited access
facility, as indicated in the tax rolls of the county, and in the
case of a state limited access facility, to the county and/or city
or town. Such notice shall be by United States mail in writing, setting forth a time for the hearing, which time shall be
not less than fifteen days after mailing of such notice. Notice
of such hearing also shall be given by publication not less
than fifteen days prior to such hearing in one or more newspapers of general circulation within the county, city, or town.
Such notice by publication shall be deemed sufficient as to
any owner or reputed owner or any unknown owner or owner
who cannot be located. Such notice shall indicate a suitable
location where plans for such proposal may be inspected.
[1987 c 200 § 2; 1981 c 95 § 1; 1965 ex.s. c 75 § 2.]
47.52.134
47.52.134 When access reports and hearings not
required. Access reports and hearings on the establishment
of limited access facilities are not required if:
(1) The limited access facility would lie wholly within
state or federal lands and the agency or agencies with jurisdiction of the land agree to the access plan; or
(2) The access rights to the affected section of roadway
have previously been purchased or established by others; or
(3) The limited access facility would not significantly
change local road use, and all affected local agencies and
abutting property owners agree in writing to waive a formal
hearing on the establishment of the facility after publication
of a notice of opportunity for a limited access hearing. This
notice of opportunity for a limited access hearing shall be
given in the same manner as required for published notice of
hearings under RCW 47.52.133. If the authority specified in
the notice receives a request for a hearing from one or more
abutting property owners or affected local agencies on or
before the date stated in the notice, an access report shall be
submitted as provided in RCW 47.52.131 and a hearing shall
be held. Notice of the hearing shall be given by mail and publication as provided in RCW 47.52.133. [1987 c 200 § 3.]
47.52.135
47.52.135 Hearing procedure. At the hearing any representative of the county, city or town, or any other person
may appear and be heard even though such official or person
is not an abutting property owner. Such hearing may, at the
option of the highway authority, be conducted in accordance
with federal laws and regulations governing highway design
public hearings. The members of such authority shall preside,
or may designate some suitable person to preside as examiner. The authority shall introduce by competent evidence a
summary of the proposal for the establishment of a limited
access facility and any evidence that supports the adoption of
the plan as being in the public interest. At the conclusion of
such evidence, any person entitled to notice who has entered
[Title 47 RCW—page 163]
47.52.137
Title 47 RCW: Public Highways and Transportation
a written appearance shall be deemed a party to this hearing
for purposes of this chapter and may thereafter introduce,
either in person or by counsel, evidence and statements or
counterproposals bearing upon the reasonableness of the proposal. Any such evidence and statements or counterproposals
shall receive reasonable consideration by the authority before
any proposal is adopted. Such evidence must be material to
the issue before the authority and shall be presented in an
orderly manner. [1982 c 189 § 5; 1981 c 67 § 29; 1977 c 77
§ 2; 1965 ex.s. c 75 § 3.]
Effective date—1982 c 189: See note following RCW 34.12.020.
Effective dates—Severability—1981 c 67: See notes following RCW
34.12.010.
design without further public hearings providing the following conditions are met:
(1) As compared with the previously adopted limited
access plan, the revised plan will not require additional or different right of way with respect to that section of highway for
which the design has been revised, in excess of five percent
by area; and
(2) If the previously adopted limited access plan was
modified by a board of review convened at the request of a
county, city, or town, the legislative authority of the county,
city, or town shall approve any revisions of the plan which
conflict with modifications ordered by the board of review.
[1981 c 95 § 2; 1977 c 77 § 1.]
47.52.137
47.52.137 Adoption of plan—Service of findings and
order—Publication of resume—Finality—Review. Following the conclusion of such hearing the authority shall
adopt a plan with such modifications, if any, it deems proper
and necessary. Its findings and order shall be in writing and
copies thereof shall be served by United States mail upon all
persons having entered a written appearance at such hearing,
and in the case of a state limited access facility, the county
commissioners of the county affected and the mayor of the
city or town affected. The authority shall also cause a resume
of such plan to be published once each week for two weeks in
one or more newspapers of general circulation within such
county, city or town beginning not less than ten days after the
mailing of such findings and order. Such determination by
the authority shall become final within thirty days after such
mailing unless a review is taken as hereinafter provided. In
case of an appeal, the order shall be final as to all parties not
appealing. [1965 ex.s. c 75 § 4.]
47.52.139
47.52.139 Local approval of plan—Disapproval,
request for review. Upon receipt of the findings and order
adopting a plan, the county, city, or town may notify the
department of transportation of its approval of such plan in
writing, in which event such plan shall be final.
In the event that a county, city, or town does not approve
the plan, the county, city, or town shall file its disapproval in
writing with the secretary of transportation within thirty days
after the mailing thereof to such mayor or county commissioner. Along with the written disapproval shall be filed a
written request for a hearing before a board of review, hereinafter referred to as the board. The request for hearing shall
set forth the portions of the plan of the department to which
the county, city, or town objects, and shall include every
issue to be considered by the board. The hearing before a
board of review shall be governed by RCW 47.52.150
through 47.52.190, as now or hereafter amended. [1977 ex.s.
c 151 § 63; 1965 ex.s. c 75 § 5.]
47.52.145
47.52.145 Modification of adopted plan without further public hearings, when. Whenever after the final adoption of a plan for a limited access highway by the transportation commission, an additional design public hearing with
respect to the facility or any portion thereof is conducted pursuant to federal law resulting in a revision of the design of the
limited access plan, the commission may modify the previously adopted limited access plan to conform to the revised
[Title 47 RCW—page 164]
47.52.150
47.52.150 State facility through city or town—Board
of review, composition and appointment. Upon request for
a hearing before the board by any county, city, or town, a
board consisting of five members shall be appointed as follows: The mayor or the county commissioners, as the case
may be shall appoint two members of the board, of which one
shall be a duly elected official of the city, county, or legislative district, except that of the legislative body of the county,
city, or town requesting the hearing, subject to confirmation
by the legislative body of the city or town; the secretary of
transportation shall appoint two members of the board; and
one member shall be selected by the four members thus
appointed. Such fifth member shall be a licensed civil engineer or a recognized professional city or town planner, who
shall be chairman of the board. In the case both the county
and an included city or town request a hearing, the board shall
consist of nine members appointed as follows: The mayor
and the county commission shall each appoint two members
from the elective officials of their respective jurisdictions,
and of the four thus selected no more than two thereof may be
members of a legislative body of the county, city, or town.
The secretary of transportation shall appoint four members of
the board. One member shall be selected by the members thus
selected, and such ninth member shall be a licensed civil
engineer or a recognized city or town planner, who shall be
chairman of the board. Such boards as are provided by this
section shall be appointed within thirty days after the receipt
of such a request by the secretary. In the event the secretary
or a county, city, or town shall not appoint members of the
board or members thus appointed fail to appoint a fifth or
ninth member of the board, as the case may be, either the secretary or the county, city, or town may apply to the superior
court of the county in which the county, city, or town is situated to appoint the member or members of the board in accordance with the provisions of this chapter. [1977 ex.s. c 151 §
64; 1963 c 103 § 3; 1961 c 13 § 47.52.150. Prior: 1959 c 242
§ 3; 1957 c 235 § 7.]
47.52.160
47.52.160 State facility through city or town—Hearing—Notice—Evidence—Determination of issues. The
board shall fix a reasonable time not more than thirty days
after the date of its appointment and shall indicate the time
and place for the hearing, and shall give notice to the county,
city, or town and to the department. At the time and place
fixed for the hearing, the state and the county, city, or town
shall present all of their evidence with respect to the objec(2004 Ed.)
Limited Access Facilities
tions set forth in the request for the hearing before the board,
and if either the state, the county, or the city or town fails to
do so, the board may determine the issues upon such evidence as may be presented to it at the hearing. [1984 c 7 §
244; 1963 c 103 § 4; 1961 c 13 § 47.52.160. Prior: 1957 c
235 § 8.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.52.170
47.52.170 State facility through city or town—Hearing—Procedure. No witness's testimony shall be received
unless he shall have been duly sworn, and the board may
cause all oral testimony to be stenographically reported.
Members of the board, its duly authorized representatives,
and all persons duly commissioned by it for the purpose of
taking depositions, shall have power to administer oaths; to
preserve and enforce order during such hearings; to issue subpoenas for, and to compel the attendance and testimony of
witnesses, or the production of books, papers, documents and
other evidence, or the taking of depositions before any designated individual competent to administer oaths, and it shall
be their duty so to do; to examine witnesses; and to do all
things conformable to law which may be necessary to enable
them, or any of them, effectively to discharge the duties of
their office. [1961 c 13 § 47.52.170. Prior: 1957 c 235 § 9.]
47.52.180
47.52.180 State facility through city or town—Hearing—Findings of board—Modification of proposed plan
by stipulation. At the conclusion of such hearing, the board
shall consider the evidence taken and shall make specific
findings with respect to the objections and issues within
thirty days after the hearing, which findings shall approve,
disapprove, or modify the proposed plan of the department of
transportation. Such findings shall be final and binding upon
both parties. Any modification of the proposed plan of the
department of transportation made by the board of review
may thereafter be modified by stipulation of the parties.
[1977 ex.s. c 151 § 65; 1977 c 77 § 3; 1961 c 13 § 47.52.180.
Prior: 1957 c 235 § 10.]
47.52.190
47.52.190 State facility through city or town—Hearing—Assistants—Costs—Reporter. The board shall
employ such assistance and clerical help as is necessary to
perform its duties. The costs thereby incurred and incident to
the conduct of the hearing, necessary expenses, and fees, if
any, of members of the board shall be borne equally by the
county, city, or town requesting the hearing and the department. When oral testimony is stenographically reported, the
department shall provide a reporter at its expense. [1984 c 7
§ 245; 1963 c 103 § 5; 1961 c 13 § 47.52.190. Prior: 1957 c
235 § 11.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.52.195
47.52.195 Review and appeal on petition of abutter.
An abutting property owner may petition for review in the
superior court of the state of Washington in the county where
the limited access facility is to be located. Such review and
any appeal therefrom shall be considered and determined by
said court upon the record of the authority in the manner,
under the conditions and subject to the limitations and with
(2004 Ed.)
47.52.220
the effect specified in the Administrative Procedure Act,
chapter 34.05 RCW, as amended. [1965 ex.s. c 75 § 6.]
47.52.200
47.52.200 Law enforcement jurisdiction within city
or town. Whenever any limited access highway facility
passes within or through any incorporated city or town the
municipal police officers of such city or town, the sheriff of
the county wherein such city or town is situated and officers
of the Washington state patrol shall have independent and
concurrent jurisdiction to enforce any violation of the laws of
this state occurring thereon: PROVIDED, The Washington
state patrol shall bear primary responsibility for the enforcement of laws of this state relating to motor vehicles within
such limited access highway facilities. [1961 c 122 § 1.]
47.52.210
47.52.210 State facility within city or town—Title to
city or town streets incorporated therein. (1) Whenever
the transportation commission adopts a plan for a limited
access highway to be constructed within the corporate limits
of a city or town which incorporates existing city or town
streets, title to such streets shall remain in the city or town,
and the provisions of RCW 47.24.020 as now or hereafter
amended shall continue to apply to such streets until such
time that the highway is operated as either a partially or fully
controlled access highway. Title to and full control over that
portion of the city or town street incorporated into the limited
access highway shall be vested in the state upon a declaration
by the secretary of transportation that such highway is operational as a limited access facility, but in no event prior to the
acquisition of right of way for such highway including access
rights, and not later than the final completion of construction
of such highway.
(2) Upon the completion of construction of a state limited access highway within a city or town, the department of
transportation may relinquish to the city or town streets constructed or improved as a functional part of the limited access
highway, slope easements, landscaping areas, and other
related improvements to be maintained and operated by the
city or town in accordance with the limited access plan. Title
to such property relinquished to a city or town shall be conveyed by a deed executed by the secretary of transportation
and duly acknowledged. Relinquishment of such property to
the city or town may be expressly conditioned upon the maintenance of access control acquired by the state and the continued operation of such property as a functional part of the limited access highway. [1981 c 95 § 3; 1977 ex.s. c 78 § 3.]
47.52.220
47.52.220 Personal wireless service facilities—
Approach permit—Report. (1) The department shall
authorize an off and on approach to partially controlled limited access highways for the placement and service of facilities providing personal wireless services.
(a) The approach shall be in a legal manner not to exceed
thirty feet in width.
(b) The approach may be specified at a point satisfactory
to the department at or between designated highway stations.
(c) The permit holder may use the approach for ingress
and egress from the highway for construction or maintenance
of the personal wireless service facility during nonpeak traffic hours so long as public safety is not adversely affected.
[Title 47 RCW—page 165]
Chapter 47.56
Title 47 RCW: Public Highways and Transportation
The permit holder may use the approach for ingress and
egress at any time for the construction of the facility if public
safety is not adversely affected and if construction will not
substantially interfere with traffic flow during peak traffic
periods.
(2) The department shall authorize the approach by an
annual permit, which may only be canceled upon one hundred eighty days' written notice to the permit holder.
(a) The department shall set the yearly cost of a permit in
rule.
(b) The permit shall be assignable to the contractors and
subcontractors of the permit holder. The permit shall also be
transferable to a new owner following the sale or merger of
the permit holder.
(3) For the purposes of this section:
(a) "Personal wireless services" means any federally
licensed personal wireless service.
(b) "Facilities" means unstaffed facilities that are used
for the transmission or reception, or both, of wireless communication services including, but not necessarily limited to,
antenna arrays, transmission cables, equipment shelters, and
support structures.
(4) The department shall present a report to the house of
representatives technology, telecommunications, and energy
committee and the senate technology and communications
committee on the implementation of the permit process and
the cost of permits by January 15, 2004, and by the first day
of the legislative session following adoption of any rule
increasing the cost of permits. [2003 c 188 § 2.]
47.56.180
47.56.190
47.56.200
47.56.210
47.56.220
47.56.230
47.56.240
47.56.242
47.56.243
47.56.245
47.56.247
47.56.248
47.56.250
47.56.253
47.56.254
47.56.255
47.56.256
47.56.257
47.56.270
47.56.271
47.56.273
47.56.282
47.56.284
47.56.286
47.56.287
47.56.288
Chapter 47.56 RCW
STATE TOLL BRIDGES, TUNNELS, AND FERRIES
Chapter 47.56
47.56.290
47.56.291
Sections
47.56.010
47.56.030
47.56.032
47.56.040
47.56.042
47.56.050
47.56.060
47.56.070
47.56.075
47.56.076
47.56.077
47.56.080
47.56.090
47.56.100
47.56.110
47.56.120
47.56.130
47.56.140
47.56.150
47.56.160
47.56.165
47.56.170
Definitions.
Powers and duties regarding toll facilities—Purchasing.
Authority of department and commission relating to state ferries.
Toll bridges authorized—Investigations.
State boundary bridges—Investigations—Agreements with
counties or states.
Purchase of bridges and ferries authorized—Provisions applicable.
Toll bridges—General powers of department and officials—
Financial statements.
Toll facilities authorized—Provisions applicable—Restrictions.
Toll roads, facilities—Legislative authorization or regional or
local sponsorship required.
Regional transportation investment district—May impose
tolls—Approval by the voters.
Concessions to operate private business on toll road prohibited.
Construction of toll bridges and issuance of bonds authorized.
Authority to acquire right of way in constructing a toll bridge.
Toll bridges—Right of way across state highways and political
subdivisions—Compensation.
Toll bridges—Resolution of necessity in acquiring right of
way—Effect of.
Toll bridges—Construction directed—Costs.
Toll bridges—Bonds—Cooperative funds from state and federal government.
Toll bridges, bonds—Form, contents, manner of sale—Interim
bonds.
Toll bridges—Bond proceeds and toll revenues, disposition
of—Construction fund—Disbursement—Investment.
Toll bridges—Toll revenue fund.
Tacoma Narrows toll bridge account.
Toll bridges—Transfer of funds for bond payments—Surplus
funds.
[Title 47 RCW—page 166]
47.56.310
47.56.320
47.56.330
47.56.340
47.56.343
47.56.345
47.56.360
47.56.366
47.56.380
47.56.390
47.56.400
47.56.410
47.56.420
47.56.430
47.56.440
47.56.450
47.56.460
47.56.470
47.56.480
47.56.490
47.56.500
Toll bridges—Payments made by warrants on vouchers—
Interest on deposits.
Toll bridges—Agreement on deposit of funds.
Toll bridges—Use of bond proceeds and revenue for expenses.
Toll bridges—Remedies of bond holders.
Toll bridges—Limitations on other service—Protection of
outstanding bonds.
Toll bridges—Insurance or indemnity bonds authorized.
Toll bridges—Fixing of toll rates authorized—Lien of bonds
on revenue.
Liquidation and closure of facility accounts upon removal of
tolls—Transfer to motor vehicle fund.
Liquidation and closure of facility accounts upon removal of
tolls—Satisfaction of claims.
Toll charges retained until costs paid.
Credit permits for vehicular passage.
Credit permits for vehicular passage—Cash deposit or bond—
Revocation of permit.
Contributions by the state or political subdivision—Bonds—
Repayment.
Permits, leases, licenses to governmental entities to use property of toll facility or ferry system.
Sale of unneeded property—Authorized—Rules.
Sale of unneeded property—Certification to governor—Execution, delivery of deed.
Franchises for utility, railway, urban public transportation purposes.
Deposit of moneys received under RCW 47.56.253 through
47.56.256.
Lake Washington and 1950 Tacoma Narrows bridges part of
primary highways.
1950 Tacoma Narrows bridge toll-free—Exception.
Fox Island toll bridge—Need for removal of tolls.
Additional Lake Washington bridge (1957 Act)—Revenue
bonds—Toll charges and other support.
Additional Lake Washington bridge (1957 Act)—Continuous
project—Authorization of other additional bridges.
Additional Lake Washington bridge (1957 Act)—Interpretation.
Second Lake Washington bridge—Use of motor vehicle fund
to pay deficits.
Second Lake Washington bridge—Designation of funds to pay
deficits—Pledge of excise tax proceeds.
Additional Lake Washington bridge (1953 Act)—Appropriation—Repayment from bond issue.
Additional Lake Washington bridge in vicinity of first
bridge—Design and construction authorized.
Additional Columbia river bridge—Vancouver to Portland
bridges—Cooperation with Oregon.
Additional Columbia river bridge—Tolls.
Additional Columbia river bridge—Agreements with Oregon
authorized.
Additional Columbia river bridge—When toll free.
Additional Columbia river bridge—Revenue bonds.
Additional Columbia river bridge—Construction—Severability.
Bridging Puget Sound, Hood Canal—Operation, maintenance,
prior charge upon revenue—Appropriations to be repaid.
Hood Canal bridge—Public sport fishing—Disclaimer of liability.
Express highway—Tacoma-Seattle-Everett—Limited access.
Express highway—Operation as toll highway—Part of state
system.
Express highway—Powers and duties of department.
Lopez Island-San Juan toll bridge—Appropriation—Study—
Location, exploration, foundation, design.
Lopez Island-San Juan toll bridge—Final designs, construction, revenue bonds authorized.
Lopez Island-San Juan toll bridge—Operation, maintenance,
prior charge upon revenue—Appropriations to be repaid.
Lopez Island-San Juan toll bridge—Effect of toll bridge
authority resolution No. 295—Ferry system refunding revenue bonds.
Columbia river bridge at Biggs Rapids—Authorized—Cooperation with Klickitat county, highway commission, Oregon
highway commission and Sherman county.
Columbia river bridge at Biggs Rapids—Appropriation—
Repayment from bond issue.
Columbia river bridge at Biggs Rapids—Revenue bonds.
Columbia river bridge at Biggs Rapids—Construction of act.
Columbia river bridge at Biggs Rapids—Powers of department—Tolls.
Columbia river bridge at Biggs Rapids—Agreements authorized.
(2004 Ed.)
State Toll Bridges, Tunnels, and Ferries
47.56.580
47.56.590
47.56.600
47.56.610
47.56.630
47.56.631
47.56.640
47.56.643
47.56.646
47.56.649
47.56.652
47.56.655
47.56.658
47.56.659
47.56.661
47.56.667
47.56.700
47.56.701
47.56.702
47.56.703
47.56.704
47.56.705
47.56.706
47.56.711
47.56.7115
47.56.7125
47.56.720
47.56.725
47.56.730
47.56.740
47.56.741
47.56.742
47.56.743
47.56.744
47.56.745
47.56.746
47.56.747
47.56.748
(2004 Ed.)
Naches Pass tunnel—What studies and surveys shall include.
Naches Pass tunnel—Plan for financing.
Naches Pass tunnel—Design.
Naches Pass tunnel—Contribution by political subdivisions.
Naches Pass tunnel—Repayment to motor vehicle fund of
funds appropriated.
Naches Pass tunnel—Additional studies—Route of highway
and tunnel—Appropriation.
Bridging lower Columbia river in vicinity of Astoria-Megler.
Bridging lower Columbia river in vicinity of AstoriaMegler—Agreements with United States—Acceptance of
public or private funds.
Bridging lower Columbia river in vicinity of AstoriaMegler—Agreements with Oregon—Provisions for Oregon
bond issue, powers and duties of both states, tolls, apportionment of costs, etc.
Bridging lower Columbia river in vicinity of AstoriaMegler—Use of Washington motor vehicle fuel taxes, motor
vehicle fund to pay Oregon bonds if tolls and fees insufficient.
Bridging lower Columbia river in vicinity of AstoriaMegler—Procedure for this state paying deficiency in tolls
and fees for Oregon bond issue.
Bridging lower Columbia river in vicinity of AstoriaMegler—Washington liability for costs—Maintenance and
repair—Approaches.
Bridging lower Columbia river in vicinity of AstoriaMegler—Financial responsibility of Pacific county—Prior
commitment required.
Bridging lower Columbia river in vicinity of AstoriaMegler—Contractual obligations of Pacific county terminated.
Bridging lower Columbia river in vicinity of AstoriaMegler—Deposit of contribution of Pacific county in motor
vehicle fund—Use.
Bridging lower Columbia river in vicinity of AstoriaMegler—When toll free.
Columbia river, Vernita bridge and highway approach from
Richland—Authorized.
Columbia river, Vernita bridge and highway approach from
Richland—Revenue bonds—Tolls and charges.
Columbia river, Vernita bridge and highway approach from
Richland—Pledge of excise taxes imposed on motor vehicle
fuels.
Columbia river, Vernita bridge and highway approach from
Richland—Continued imposition of such taxes.
Columbia river, Vernita bridge and highway approach from
Richland—Repayment of motor vehicle fund money—Continuation of tolls.
Columbia river, Vernita bridge and highway approach from
Richland—Facility to be part of highway system—Operation, collection of tolls.
Columbia river, Vernita bridge and highway approach from
Richland—Laws applicable—Construction of 1963 statute.
Spokane river bridges.
Spokane river toll bridge—Operation and maintenance
responsibility and funding.
Spokane river toll bridge—Transfer of funds.
Puget Island-Westport ferry—Payments for operation and
maintenance to Wahkiakum county—Toll-free operation
and provision of rest room facilities, when.
County ferries—Deficit reimbursements—Capital improvement funds.
"No Smoking" areas on ferries—Establishment directed.
Columbia river bridge at Horn Rapids—Authorized—
Approach routes.
Columbia river bridge at Horn Rapids—Agreements with
local governments.
Columbia river bridge at Horn Rapids—Bonds—Agreements
with local governments required.
Columbia river bridge at Horn Rapids—Bonds—Plans for
funding obligations of local governments required.
Columbia river bridge at Horn Rapids—Agreements with
United States—Acceptance of public or private funds.
Columbia river bridge at Horn Rapids—General obligation
bonds authorized—Additional bonds authorized, restriction.
Columbia river bridge at Horn Rapids—Bonds—Issuance,
sale, retirement supervised by state finance committee.
Columbia river bridge at Horn Rapids—Bonds—Term—
Terms and conditions—Signatures—Registration—Where
payable—Negotiable instruments—Legal investment for
state funds—Bond anticipation notes.
Columbia river bridge at Horn Rapids—Bonds—Bond proceeds—Deposit and use.
47.56.749
47.56.750
47.56.751
47.56.752
47.56.753
47.56.754
47.56.755
47.56.756
47.56.760
47.56.761
47.56.770
47.56.771
47.56.772
47.56.773
47.56.774
47.56.010
Columbia river bridge at Horn Rapids—Bonds—Statement
describing nature of obligation—Sources of payment.
Columbia river bridge at Horn Rapids—Bonds—Account created in highway bond retirement fund—Deposit of revenue—Pledge of excise taxes—Repayment procedure—Legislative covenant.
Columbia river bridge at Horn Rapids—Operation by department of transportation—Amount and duration of tolls—Use
of motor vehicle fund moneys—Priority of payments—Trust
fund—Covenants by state finance committee.
Columbia river bridge at Horn Rapids—Toll revenue trust
fund—Transfer of surplus moneys.
Columbia river bridge at Horn Rapids—Repayment of motor
vehicle fund money—Continuation of tolls.
Columbia river bridge at Horn Rapids—Ferries, urban arterials, Spokane river toll bridges, bonds—Lien against fuel tax
revenues.
Columbia river bridge at Horn Rapids—When toll free—Conveyance to city or counties.
Additional bridge at Columbia Point authorized.
First Avenue South bridge in Seattle—Study by commission—Bonds, tolls—Additional funding.
First Avenue South bridge in Seattle—Study by city—Tolls—
Revenues.
Refunding bonds—Authorized.
Refunding bonds—General obligation—Signatures, negotiability—Payment of principal and interest—Pledge of excise
taxes.
Refunding bonds—Liquidation of existing bond funds.
Refunding bonds—Repayment to Puget Sound capital construction account.
Various bond issues—Charge against fuel tax revenues.
Bridges across navigable waters: RCW 79.91.090 through 79.91.120.
Port districts, toll facilities: Chapter 53.34 RCW.
Toll bridge bonds authorized, adjoining counties: RCW 36.76.140.
Traffic violations and unlawful acts on toll facility or ferry: RCW 46.61.690.
Viaducts, bridges, elevated roadways, tunnels, etc., authority of cities to construct: Chapter 35.85 RCW.
47.56.010
47.56.010 Definitions. As used in this chapter:
(1) "Toll bridge" means a bridge constructed or acquired
under this chapter, upon which tolls are charged, together
with all appurtenances, additions, alterations, improvements,
and replacements thereof, and the approaches thereto, and all
lands and interests used therefor, and buildings and improvements thereon.
(2) "Toll road" means any express highway, superhighway, or motorway at such locations and between such termini
as may be established by law, and constructed or to be constructed as a limited access highway under the provisions of
this chapter by the department, and shall include, but not be
limited to, all bridges, tunnels, overpasses, underpasses,
interchanges, entrance plazas, approaches, toll houses, service areas, service facilities, communications facilities, and
administration, storage, and other buildings that the department may deem necessary for the operation of the project,
together with all property, rights, easements, and interests
that may be acquired by the department for the construction
or the operation of the project, all of which shall be conducted
in the same manner and under the same procedure as provided for the establishing, constructing, operating, and maintaining of toll bridges by the department, insofar as those procedures are reasonably consistent and applicable.
(3) "1950 Tacoma Narrows bridge" means the bridge
crossing the Tacoma Narrows that was opened to vehicle
travel in 1950. [2002 c 114 § 2; 1984 c 7 § 246; 1961 c 13 §
47.56.010. Prior: 1953 c 220 § 1; 1937 c 173 § 1, part; RRS
§ 6524-1, part.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
[Title 47 RCW—page 167]
47.56.030
Title 47 RCW: Public Highways and Transportation
Captions not law—2002 c 114: See note following RCW 47.46.011.
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.030
47.56.030 Powers and duties regarding toll facilities—Purchasing. (1) Except as permitted under chapter
47.46 RCW:
(a) The department of transportation shall have full
charge of the construction of all toll bridges and other toll
facilities including the Washington state ferries, and the operation and maintenance thereof.
(b) The transportation commission shall determine and
establish the tolls and charges thereon, and shall perform all
duties and exercise all powers relating to the financing, refinancing, and fiscal management of all toll bridges and other
toll facilities including the Washington state ferries, and
bonded indebtedness in the manner provided by law.
(c) The department shall have full charge of design of all
toll facilities.
(d) Except as provided in this section, the department
shall proceed with the construction of such toll bridges and
other facilities and the approaches thereto by contract in the
manner of state highway construction immediately upon
there being made available funds for such work and shall
prosecute such work to completion as rapidly as practicable.
The department is authorized to negotiate contracts for any
amount without bid under (d)(i) and (ii) of this subsection:
(i) Emergency contracts, in order to make repairs to ferries or ferry terminal facilities or removal of such facilities
whenever continued use of ferries or ferry terminal facilities
constitutes a real or immediate danger to the traveling public
or precludes prudent use of such ferries or facilities; and
(ii) Single source contracts for vessel dry dockings,
when there is clearly and legitimately only one available bidder to conduct dry dock-related work for a specific class or
classes of vessels. The contracts may be entered into for a single vessel dry docking or for multiple vessel dry dockings for
a period not to exceed two years.
(2) The department shall proceed with the procurement
of materials, supplies, services, and equipment needed for the
support, maintenance, and use of a ferry, ferry terminal, or
other facility operated by Washington state ferries, in accordance with chapter 43.19 RCW except as follows:
(a) Except as provided in (d) of this subsection, when the
secretary of the department of transportation determines in
writing that the use of invitation for bid is either not practicable or not advantageous to the state and it may be necessary
to make competitive evaluations, including technical or performance evaluations among acceptable proposals to complete the contract award, a contract may be entered into by
use of a competitive sealed proposals method, and a formal
request for proposals solicitation. Such formal request for
proposals solicitation shall include a functional description of
the needs and requirements of the state and the significant
factors.
(b) When purchases are made through a formal request
for proposals solicitation the contract shall be awarded to the
responsible proposer whose competitive sealed proposal is
determined in writing to be the most advantageous to the state
taking into consideration price and other evaluation factors
set forth in the request for proposals. No significant factors
may be used in evaluating a proposal that are not specified in
[Title 47 RCW—page 168]
the request for proposals. Factors that may be considered in
evaluating proposals include but are not limited to: Price;
maintainability; reliability; commonality; performance levels; life cycle cost if applicable under this section; cost of
transportation or delivery; delivery schedule offered; installation cost; cost of spare parts; availability of parts and service
offered; and the following:
(i) The ability, capacity, and skill of the proposer to perform the contract or provide the service required;
(ii) The character, integrity, reputation, judgment, experience, and efficiency of the proposer;
(iii) Whether the proposer can perform the contract
within the time specified;
(iv) The quality of performance of previous contracts or
services;
(v) The previous and existing compliance by the proposer with laws relating to the contract or services;
(vi) Objective, measurable criteria defined in the request
for proposal. These criteria may include but are not limited to
items such as discounts, delivery costs, maintenance services
costs, installation costs, and transportation costs; and
(vii) Such other information as may be secured having a
bearing on the decision to award the contract.
(c) When purchases are made through a request for proposal process, proposals received shall be evaluated based on
the evaluation factors set forth in the request for proposal.
When issuing a request for proposal for the procurement of
propulsion equipment or systems that include an engine, the
request for proposal must specify the use of a life cycle cost
analysis that includes an evaluation of fuel efficiency. When
a life cycle cost analysis is used, the life cycle cost of a proposal shall be given at least the same relative importance as
the initial price element specified in the request of proposal
documents. The department may reject any and all proposals
received. If the proposals are not rejected, the award shall be
made to the proposer whose proposal is most advantageous to
the department, considering price and the other evaluation
factors set forth in the request for proposal.
(d) If the department is procuring large equipment or
systems (e.g., electrical, propulsion) needed for the support,
maintenance, and use of a ferry operated by Washington state
ferries, the department shall proceed with a formal request for
proposal solicitation under this subsection (2) without a
determination of necessity by the secretary. [2002 c 114 §
19; 2001 c 59 § 1; 1995 1st sp.s. c 4 § 1; 1977 ex.s. c 151 §
66; 1969 ex.s. c 180 § 3; 1961 c 278 § 8; 1961 c 13 §
47.56.030. Prior: 1937 c 173 § 10; RRS § 6524-10.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
Effective date—1995 1st sp.s. c 4: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the
state government and its existing public institutions, and shall take effect
immediately [June 14, 1995]." [1995 1st sp.s. c 4 § 4.]
47.56.032
47.56.032 Authority of department and commission
relating to state ferries. All powers vested in the toll bridge
authority as of September 21, 1977, relating to the acquiring,
operating, extending, designing, constructing, repairing, and
maintenance of the Washington state ferries or any part
thereof and the collecting of tolls and charges for use of its
facilities, shall be performed by the department. The commis(2004 Ed.)
State Toll Bridges, Tunnels, and Ferries
sion shall determine all fares, tolls, and other charges for its
facilities and shall directly perform all duties and exercise all
powers relating to financing, refinancing, and fiscal management of the system's bonded indebtedness in the manner provided by law. [1984 c 7 § 247; 1961 c 278 § 9.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.040
47.56.040 Toll bridges authorized—Investigations.
The department is empowered, in accordance with the provisions of this chapter, to provide for the establishment and
construction of toll bridges upon any public highways of this
state together with approaches thereto wherever it is considered necessary or advantageous and practicable for crossing
any stream, body of water, gulch, navigable water, swamp, or
other topographical formation whether that formation is
within this state or constitutes a boundary between this state
and an adjoining state or country. The necessity or advantage
and practicability of any such toll bridge shall be determined
by the department, and the feasibility of financing any toll
bridge in the manner provided by this chapter shall be a primary consideration and determined according to the best
judgment of the department. For the purpose of obtaining
information for the consideration of the department upon the
construction of any toll bridge or any other matters pertaining
thereto, any cognizant officer or employee of the state shall,
upon the request of the department, make reasonable examination, investigation, survey, or reconnaissance for the determination of material facts pertaining thereto and report this to
the department. The cost of any such examination, investigation, survey, or reconnaissance shall be borne by the department or office conducting these activities from the funds provided for that department or office for its usual functions.
[1984 c 7 § 248; 1961 c 13 § 47.56.040. Prior: 1937 c 173 §
3; RRS § 6524-3; prior: 1913 c 56 § 2; RRS § 6525.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.042
47.56.042 State boundary bridges—Investigations—
Agreements with counties or states. The department is
authorized to enter into agreements with any county of this
state and/or with an adjoining state or county thereof for the
purpose of implementing an investigation of the feasibility of
any toll bridge project for the bridging of a river forming a
portion of the boundary of this state, and the adjoining state.
The department may use funds available to it to carry out the
purposes of this section. These agreements may provide that
if any such project is determined to be feasible and is
adopted, any advancement of funds by any state or county
may be reimbursed out of any proceeds derived from the sale
of bonds or out of tolls and revenues to be derived from the
project. [1984 c 7 § 249; 1961 c 13 § 47.56.042. Prior: 1955
c 203 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.050
47.56.050 Purchase of bridges and ferries authorized—Provisions applicable. (1) The department, whenever it is considered necessary or advantageous and practicable, is empowered to provide for the acquisition by purchase
of, and to acquire by purchase (a) any bridge or bridges or
ferries which connect with or may be connected with the pub(2004 Ed.)
47.56.060
lic highways of this state (b) together with approaches
thereto.
(2) In connection with the acquisition by purchase of any
bridge or bridges or ferries under subsection (1) of this section, the department, the state treasurer, any city, county, or
other political subdivision of this state, and all of their officers:
(a) Are empowered and required to do all acts and things
provided for in this chapter to establish and construct toll
bridges and operate, finance, and maintain such bridges insofar as the powers and requirements are applicable to the purchase of any bridge or bridges or ferries and their operation,
financing, and maintenance; and
(b) In purchasing, operating, financing, and maintaining
any bridge or bridges or ferries acquired or to be acquired by
purchase under this section, shall act in the same manner and
under the same procedures as are provided in this chapter to
establish, construct, operate, finance, and maintain toll
bridges insofar as such manner and procedure are applicable
to the purchase of any bridge or bridges or ferries and their
operation, financing, and maintenance.
(3) Without limiting the generality of the provisions contained in subsections (1) and (2) of this section, the department is empowered: (a) To cause surveys to be made for the
purpose of investigating the propriety of acquiring by purchase any such bridge or bridges or ferries and the right of
way necessary or proper for that bridge or bridges or ferries,
and other facilities necessary to carry out the provisions of
this chapter; (b) to issue, sell, and redeem bonds, and to
deposit and pay out the proceeds of the bonds for the financing thereof; (c) to collect, deposit, and expend tolls therefrom; (d) to secure and remit financial and other assistance in
the purchase thereof; and (e) to carry insurance thereon.
(4) The provisions of RCW 47.56.220 apply when any
bridge or bridges or ferries are acquired by purchase pursuant
to this section. [1984 c 7 § 250; 1973 c 106 § 25; 1961 c 13
§ 47.56.050. Prior: 1945 c 266 § 1; Rem. Supp. 1945 § 65243a.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.060
47.56.060 Toll bridges—General powers of department and officials—Financial statements. The department, the officials thereof, and all other state officials are
empowered to act and make agreements consistent with law
as may be necessary or desirable in connection with the
duties and powers conferred upon them respectively by law
regarding the construction, maintenance, operation, and
insurance of toll bridges or the safeguarding of the funds and
revenues required for such construction and the payment of
the indebtedness incurred therefor. The department shall
keep full, complete, and separate accounts of each toll bridge,
and annually shall prepare balance sheet and income and
profit and loss statements showing the financial condition of
each such toll bridge, which statement shall be open at all reasonable times to the inspection of holders of bonds issued by
the department. [1984 c 7 § 251; 1961 c 13 § 47.56.060.
Prior: 1937 c 173 § 17; RRS § 6524-17.]
Severability—1984 c 7: See note following RCW 47.01.141.
[Title 47 RCW—page 169]
47.56.070
Title 47 RCW: Public Highways and Transportation
47.56.070
47.56.070 Toll facilities authorized—Provisions
applicable—Restrictions. The department of transportation
may, with the approval of the transportation commission,
provide for the establishment, construction, and operation of
toll tunnels, toll roads, and other facilities necessary for their
construction and connection with public highways of the
state. It may cause surveys to be made to determine the propriety of their establishment, construction, and operation, and
may acquire rights of way and other facilities necessary to
carry out the provisions hereof; and may issue, sell, and
redeem bonds, and deposit and expend them; secure and
remit financial and other assistance in the construction
thereof; carry insurance thereon; and handle any other matters pertaining thereto, all of which shall be conducted in the
same manner and under the same procedure as provided for
the establishing, constructing, operating, and maintaining of
toll bridges by the department, insofar as reasonably consistent and applicable. No toll facility, toll bridge, toll road, or
toll tunnel, shall be combined with any other toll facility for
the purpose of financing unless such facilities form a continuous project, to the end that each such facility or project be
self-liquidating and self-sustaining. [1977 ex.s. c 151 § 67;
1961 c 13 § 47.56.070. Prior: 1953 c 220 § 3; 1937 c 173 § 3
1/2; RRS § 6524-3 1/2.]
47.56.075
47.56.075 Toll roads, facilities—Legislative authorization or regional or local sponsorship required. The
department shall approve for construction only such toll
roads as the legislature specifically authorizes or such toll
facilities as are specifically sponsored by a regional transportation investment district, city, town, or county. [2002 c 56 §
404; 1984 c 7 § 252; 1961 c 13 § 47.56.075. Prior: 1953 c
220 § 7.]
Captions and subheadings not law—Severability—2002 c 56: See
RCW 36.120.900 and 36.120.901.
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.076
47.56.076 Regional transportation investment district—May impose tolls—Approval by the voters. Upon
approval of a majority of the voters within its boundaries voting on the ballot proposition, and only for the purposes authorized in *RCW 36.120.050(1)(f), a regional transportation
investment district may impose vehicle tolls on state routes
where improvements financed in whole or in part by a
regional transportation investment district add additional
lanes to, or reconstruct lanes on, a highway of statewide significance. The department shall administer the collection of
vehicle tolls on designated facilities unless otherwise specified in law, and the state transportation commission, or its
successor, shall be the tolling authority. [2002 c 56 § 403.]
*Reviser's note: RCW 36.120.050 was amended by 2003 c 350 § 4,
changing subsection (1)(f) to subsection (1)(g).
Captions and subheadings not law—Severability—2002 c 56: See
RCW 36.120.900 and 36.120.901.
47.56.077
47.56.077 Concessions to operate private business on
toll road prohibited. The department shall not grant concessions for the operation or establishment of any privately
owned business upon toll road rights of way. [1984 c 7 § 253;
1961 c 13 § 47.56.077. Prior: 1953 c 220 § 8.]
Severability—1984 c 7: See note following RCW 47.01.141.
[Title 47 RCW—page 170]
47.56.080
47.56.080 Construction of toll bridges and issuance
of bonds authorized. Whenever in the judgment of the
transportation commission it is considered in the best interest
of the public highways of the state that any new toll bridge or
bridges be constructed upon any public highway and across
any stream, body of water, gulch, navigable water, swamp, or
other topographical formation and operated by the state the
commission shall adopt a resolution declaring that public
interest and necessity require the construction of such toll
bridge or bridges and authorizing the issuance of revenue
bonds for the purpose of obtaining funds in an amount not in
excess of that estimated to be required for such construction.
The issuance of bonds as provided in this chapter for the construction of more than one toll bridge may at the discretion of
the commission be included in the same authority and issue
of bonds. [1977 ex.s. c 151 § 68; 1961 c 13 § 47.56.080.
Prior: 1937 c 173 § 6; RRS § 6524-6.]
47.56.090
47.56.090 Authority to acquire right of way in constructing a toll bridge. The department of transportation is
empowered to secure right of way for toll bridges and for
approaches thereto by gift or purchase, or by condemnation
in the manner provided by law for the taking of private property for public highway purposes. [1977 ex.s. c 151 § 69;
1961 c 13 § 47.56.090. Prior: 1937 c 173 § 5; RRS § 6524-5.]
47.56.100
47.56.100 Toll bridges—Right of way across state
highways and political subdivisions—Compensation. The
right of way is hereby given, dedicated, and set apart upon
which to locate, construct, and maintain bridges or
approaches thereto or other highway crossings, and transportation facilities thereof or thereto, through, over, or across
any state highways, and through, over, or across the streets,
alleys, lanes, and roads within any city, county, or other political subdivision of the state. If any property belonging to any
city, county, or other political subdivision of the state is
required to be taken for the construction of any bridge or
approach thereto, or if any such property is injured or damaged by such construction, compensation therefor as may be
proper or necessary and as agreed upon may be paid by the
department to the particular county, city, or other political
subdivision of the state owning the property, or condemnation proceedings may be brought for the determination of the
compensation. [1984 c 7 § 254; 1977 ex.s. c 103 § 4; 1961 c
13 § 47.56.100. Prior: 1937 c 173 § 16; RRS § 6524-16.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.110
47.56.110 Toll bridges—Resolution of necessity in
acquiring right of way—Effect of. Before the department
proceeds with any action to secure a right of way or with construction of any toll bridge under the provisions of this chapter, the commission shall first pass a resolution that public
interest and necessity require the acquisition of right of way
for and the construction of the toll bridge. The resolution is
conclusive evidence (1) of the public necessity of such construction; (2) that the property is necessary therefor; and (3)
that the proposed construction is planned or located in a manner which will be most compatible with the greatest public
good and the least private injury. When it becomes necessary
for the department to condemn any real estate to be used in
(2004 Ed.)
State Toll Bridges, Tunnels, and Ferries
connection with any such bridge, the attorney general of the
state shall represent the department. In eminent domain proceedings to acquire property for any of the purposes of this
chapter, any toll bridge, real property, personal property,
franchises, rights, easements, or other property or privileges
appurtenant thereto appropriated or dedicated to a public use
or purpose by any person, firm, private, public, or municipal
corporation, county, city, town, district, or any political subdivision of the state, may be condemned and taken, and the
acquisition and use as provided in this chapter for the same
public use or purpose to which the property has been so
appropriated or dedicated, or for any other public use or purpose, is a superior and permanent right and necessity, and a
more necessary use and purpose than the public use or purpose to which the property has already been appropriated or
dedicated. It is not necessary in any eminent domain proceedings under this chapter to plead or prove any acts or proceedings preliminary or prior to the adoption of the resolution
hereinbefore referred to describing the property sought to be
taken and directing such proceedings. [1984 c 7 § 255; 1961
c 13 § 47.56.110. Prior: 1937 c 173 § 11; RRS § 6524-11.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.120
47.56.120 Toll bridges—Construction directed—
Costs. In the event that the transportation commission
should determine that any toll bridge should be constructed,
all cost thereof including right of way, survey, and engineering shall be paid out of any funds available for payment of the
cost of such toll bridge under this chapter. [1977 ex.s. c 151
§ 70; 1961 c 13 § 47.56.120. Prior: 1937 c 173 § 4; RRS §
6524-4.]
47.56.130
47.56.130 Toll bridges—Bonds—Cooperative funds
from state and federal government. The department is
hereby empowered to issue bonds for the construction of any
toll bridge or toll bridges authorized under the provisions of
this chapter. Any and all bonds issued for the construction of
any toll bridge or toll bridges under the authority of the
department shall be issued in the name of the department,
shall constitute obligations only of the department, shall be
identified as . . . . . . toll bridge bonds, and shall contain a
recital on the face thereof that the payment or redemption of
the bonds and the payment of the interest thereon is secured
by a direct and exclusive charge and lien upon the tolls and
other revenues of any nature whatever received from the
operation of the particular toll bridge or bridges for the construction of which the bonds are issued and that neither the
payment of the principal or any part thereof nor of the interest
thereon or any part thereof constitutes a debt, liability, or
obligation of the state of Washington. The department is
empowered to receive and accept funds from the state of
Washington or the federal government upon a cooperative or
other basis for the construction of any toll bridge authorized
under this chapter and is empowered to enter into such agreements with the state of Washington or the federal government
as may be required for the securing of such funds. [1984 c 7
§ 256; 1961 c 13 § 47.56.130. Prior: 1937 c 173 § 7; RRS §
6524-7.]
Severability—1984 c 7: See note following RCW 47.01.141.
(2004 Ed.)
47.56.140
47.56.140
47.56.140 Toll bridges, bonds—Form, contents,
manner of sale—Interim bonds. The revenue bonds may
be issued and sold by the department of transportation from
time to time and in such amounts as it deems necessary to
provide sufficient funds for the construction of the bridge,
and to pay interest on outstanding bonds issued for its construction during the period of actual construction and for six
months after completion thereof.
The department of transportation shall determine the
form, conditions, and denominations of the bonds, and the
maturity dates which the bonds to be sold shall bear and the
interest rate thereon. All bonds of the same issue need not
bear the same interest rate. Principal and interest of the bonds
may be payable at such place as determined by the department. They may be in any form including bearer bonds or
registered bonds as provided in RCW 39.46.030, with interest
payable at such times as determined by the department, and
shall mature at such times and in such amounts as the department prescribes. The department may provide for the retirement of the bonds at any time prior to maturity, and in such
manner and upon payment of such premiums as it may determine in the resolution providing for the issuance of the
bonds. All such bonds shall be signed by the state auditor and
countersigned by the governor and any interest coupons
appertaining thereto shall bear the signature of the state auditor. The countersignature of the governor on such bonds and
the signature of the state auditor on any coupons may be their
printed or lithographed facsimile signatures. Successive
issues of such bonds within the limits of the original authorization shall have equal preference with respect to the redemption thereof and the payment of interest thereon. The department may fix different maturity dates, serially or otherwise,
for successive issues under any one original authorization.
The bonds shall be negotiable instruments under the law merchant. All bonds issued and sold hereunder shall be sold on
sealed bids to the highest and best bidder after such advertising for bids as the department deems proper. The department
may reject any and all bids and may thereafter sell the bonds
at private sale under such terms and conditions as it deems
most advantageous to its own interests; but not at a price
below that of the best bid which was rejected. The department may contract loans and borrow money through the sale
of bonds of the same character as those herein authorized,
from the United States or any agency thereof, upon such conditions and terms as may be agreed to and the bonds shall be
subject to all the provisions of this chapter, except the
requirement that they be first offered at public sale.
Temporary or interim bonds, certificates, or receipts, of
any denomination, and with or without coupons attached,
signed by the state auditor, may be issued and delivered until
bonds are executed and available for delivery. [1983 c 167 §
118; 1970 ex.s. c 56 § 62; 1969 ex.s. c 232 § 33; 1963 ex.s. c
3 § 45; 1961 c 13 § 47.56.140. Prior: 1953 c 79 § 1; 1937 c
173 § 8; RRS § 6524-8.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Purpose—1970 ex.s. c 56: See note following RCW 39.52.020.
Validation—Saving—Severability—1969 ex.s. c 232: See notes following RCW 39.52.020.
[Title 47 RCW—page 171]
47.56.150
Title 47 RCW: Public Highways and Transportation
47.56.150
47.56.150 Toll bridges—Bond proceeds and toll revenues, disposition of—Construction fund—Disbursement—Investment. The proceeds from the sale of all bonds
authorized under the provisions of this chapter shall be paid
to the state treasurer for the credit of the department and be
deposited as demand deposits forthwith in such depositary or
depositaries as may be authorized by law to receive deposits
of state funds to the credit of a fund to be designated as the
construction fund of the particular toll bridge or toll bridges
for which such bonds were issued and sold, which fund shall
not be a state fund and shall at all times be kept segregated
and set apart from all other funds and in trust for the purposes
herein set out. Such proceeds shall be paid out or disbursed
solely for the construction of such toll bridge or toll bridges,
the acquisition of the necessary lands and easements therefor
and the payment of interest on such bonds during the period
of actual construction and for a period of six months thereafter, only as the need therefor shall arise. The department may
agree with the purchaser of the bonds upon any conditions or
limitations restricting the disbursement of such funds that
may be deemed advisable, for the purpose of assuring the
proper application of such funds. All moneys in such fund
and not required to meet current construction costs of the toll
bridge or toll bridges for which such bonds were issued and
sold, and all funds constituting surplus revenues that are not
immediately needed for the particular object or purpose to
which they must be applied or are pledged shall be invested
in bonds and obligations of the nature eligible for investment
of surplus state moneys: PROVIDED, That the department
may provide in the proceedings authorizing the issuance of
these bonds that the investment of such moneys shall be made
only in particular bonds and obligations within the classifications eligible for such investment, and such provisions shall
thereupon be binding upon the department and all officials
having anything to do with the investment. Any surplus
which may exist in the construction fund shall be applied to
the retirement of bonds issued for the construction of such
toll bridge or toll bridges by purchase or call. If these bonds
cannot be purchased at a price satisfactory to the department
and are not by their terms callable prior to maturity, the surplus shall be paid into the fund applicable to the payment of
principal and interest of the bonds and shall be used for that
purpose. The proceedings authorizing the issuance of bonds
may provide limitations and conditions upon the time and
manner of applying the surplus to the purchase and call of
outstanding bonds and the terms upon which they shall be
purchased or called. Such limitations and conditions shall be
followed and observed in the application and use of the surplus. All bonds so retired by purchase or call shall be immediately canceled. [1984 c 7 § 257; 1961 c 13 § 47.56.150.
Prior: 1937 c 173 § 14, part; RRS § 6524-14, part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.160
47.56.160 Toll bridges—Toll revenue fund. All tolls
or other revenues received from the operation of any toll
bridge or toll bridges constructed with the proceeds of bonds
issued and sold hereunder shall be paid over by the department to the state treasurer. The treasurer shall deposit them
forthwith as demand deposits in a depositary or depositaries
authorized by law to receive deposits of state funds. The
deposit shall be made to the credit of a special trust fund des[Title 47 RCW—page 172]
ignated as the toll revenue fund of the particular toll bridge or
toll bridges producing the tolls or revenue, which fund shall
be a trust fund and shall at all times be kept segregated and set
apart from all other funds. [1984 c 7 § 258; 1961 c 13 §
47.56.160. Prior: 1937 c 173 § 14, part; RRS § 6524-14,
part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.165
47.56.165 Tacoma Narrows toll bridge account. A
special account to be known as the Tacoma Narrows toll
bridge account is created in the motor vehicle fund in the
state treasury.
(1) Deposits to the account must include:
(a) All proceeds of bonds issued for construction of the
Tacoma Narrows public-private initiative project, including
any capitalized interest;
(b) All of the toll charges and other revenues received
from the operation of the Tacoma Narrows bridge as a toll
facility, to be deposited at least monthly; and
(c) Any interest that may be earned from the deposit or
investment of those revenues.
(2) Proceeds of bonds shall be used consistent with RCW
47.46.130, including the reimbursement of expenses and fees
incurred under agreements entered into under RCW
47.46.040 as required by those agreements.
(3) Toll charges, other revenues, and interest may be
used to:
(a) Pay any required costs of financing, operation, maintenance, and management and necessary repairs of the facility; and
(b) Repay amounts to the motor vehicle fund as required
under RCW 47.46.140.
(4) When repaying the motor vehicle fund under RCW
47.46.140, the state treasurer shall transfer funds from the
Tacoma Narrows toll bridge account to the motor vehicle
fund on or before each debt service date for bonds issued for
the Tacoma Narrows public-private initiative project in an
amount sufficient to repay the motor vehicle fund for
amounts transferred from that fund to the highway bond
retirement fund to provide for any bond principal and interest
due on that date. The state treasurer may establish subaccounts for the purpose of segregating toll charges, bond sale
proceeds, and other revenues. [2002 c 114 § 11.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
47.56.170
47.56.170 Toll bridges—Transfer of funds for bond
payments—Surplus funds. From the money deposited in
each separate construction fund under RCW 47.56.160, the
state treasurer shall transfer to the place or places of payment
named in the bonds such sums as may be required to pay the
interest as it becomes due on all bonds sold and outstanding
for the construction of a particular toll bridge or toll bridges
during the period of actual construction and during the period
of six months immediately thereafter. The state treasurer
shall thereafter transfer from each separate toll revenue fund
to the place or places of payment named in the bonds such
sums as may be required to pay the interest on the bonds and
redeem the principal thereof as the interest payments and
bond redemption become due for all bonds issued and sold
(2004 Ed.)
State Toll Bridges, Tunnels, and Ferries
for the construction of the particular toll bridge or toll bridges
producing the tolls or revenues so deposited in the toll revenue fund. All funds so transferred for the payment of principal or interest on bonds issued for any particular toll bridge
shall be segregated and applied solely for the payment of that
principal or interest. The proceedings authorizing the issuance of bonds may provide for setting up a reserve fund or
funds out of the tolls and other revenues not needed for the
payment of principal and interest, as the same currently
matures and for the preservation and continuance of the fund
in a manner to be provided therein. The proceedings may also
require the immediate application of all surplus moneys in
the toll revenue fund to the retirement of the bonds prior to
maturity, by call or purchase, in such manner and upon such
terms and the payment of such premiums as may be deemed
advisable in the judgment of the department.
The moneys remaining in each separate toll revenue fund
after providing the amount required for interest and redemption of bonds as provided in this section shall be held and
applied as provided in the proceedings authorizing the issuance of the bonds. If the proceedings authorizing the issuance
of the bonds do not require surplus revenues to be held or
applied in any particular manner, they shall be allocated and
used for such other purposes incidental to the construction,
operation, and maintenance of the toll bridge or bridges as the
department may determine. [1984 c 7 § 259; 1961 c 13 §
47.56.170. Prior: 1937 c 173 § 14, part; RRS § 6524-14,
part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.180
47.56.180 Toll bridges—Payments made by warrants
on vouchers—Interest on deposits. Warrants for payments
to be made on account of the bonds shall be duly drawn by
the state treasurer on vouchers approved by the department.
Moneys required to meet the costs of construction and all
expenses and costs incidental to the construction of any particular toll bridge or toll bridges or to meet the costs of operating, maintaining, and repairing the bridge or bridges shall
be paid from the proper fund therefor by the state treasurer
upon vouchers approved by the department.
All interest received or earned on money deposited in
each and every fund provided for in this chapter shall be credited to and become a part of the particular fund upon which
the interest accrues. [1984 c 7 § 260; 1973 c 106 § 26; 1961
c 13 § 47.56.180. Prior: 1937 c 173 § 14, part; RRS § 652414, part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.190
47.56.190 Toll bridges—Agreement on deposit of
funds. The department may provide in the proceedings
authorizing the issuance of bonds or may otherwise agree
with the purchasers of bonds regarding the deposit of all
moneys constituting the construction fund and the toll revenue fund and provide for the deposit of the money at such
times and with such depositaries or paying agents and upon
the furnishing of security as meets with the approval of the
purchasers of the bonds so long as the depositaries and security provided for or agreed upon are qualified and eligible in
accordance with the requirements of law. [1984 c 7 § 261;
(2004 Ed.)
47.56.220
1961 c 13 § 47.56.190. Prior: 1937 c 173 § 14, part; RRS §
6524-14, part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.200
47.56.200 Toll bridges—Use of bond proceeds and
revenue for expenses. Notwithstanding anything contained
in this chapter, the proceeds received from the sale of bonds
and the tolls or other revenues received from the operation of
any toll bridge or toll bridges may be used to defray any
expenses incurred by the department in connection with and
incidental to the issuance and sale of bonds for the construction of the toll bridge or toll bridges including expenses for
the preparation of surveys and estimates and making inspections and examinations required by the purchasers of the
bonds. In addition, the proceedings authorizing the issuance
of the bonds may contain appropriate provisions governing
the use and application of the bond proceeds and toll or other
revenues for the purposes herein specified. [1984 c 7 § 262;
1961 c 13 § 47.56.200. Prior: 1937 c 173 § 14, part; RRS §
6524-14, part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.210
47.56.210 Toll bridges—Remedies of bond holders.
While any bonds issued by the department under this chapter
remain outstanding, the powers, duties, or existence of the
department or of any other official or agency of the state shall
not be diminished or impaired in any manner that will affect
adversely the interests and rights of the holders of such
bonds. The holder of any bond may by mandamus or other
appropriate proceeding require and compel the performance
of any of the duties imposed upon any state department, official, or employee, or imposed upon the department or its
officers, agents, and employees in connection with the construction, maintenance, operation, and insurance of any
bridge, and in connection with the collection, deposit, investment, application, and disbursement of all tolls and other revenues derived from the operation and use of any bridge and in
connection with the deposit, investment, and disbursement of
the proceeds received from the sale of bonds. The enumeration of rights and remedies in this section shall not be deemed
to exclude the exercise or prosecution of any other rights or
remedies by the holders of the bonds. [1984 c 7 § 263; 1961
c 13 § 47.56.210. Prior: 1937 c 173 § 18; RRS § 6524-18.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.220
47.56.220 Toll bridges—Limitations on other service—Protection of outstanding bonds. Except as otherwise provided in RCW 47.56.291, *47.56.714, and
47.56.756, as long as any of the bonds issued hereunder for
the construction of any toll bridge are outstanding and
unpaid, there shall not be erected, constructed, or maintained
any other bridge or other crossing over, under, through, or
across the waters over which such toll bridge is located or
constructed, connecting or joining directly or indirectly the
lands or extensions thereof or abutments thereon on both
sides of the waters spanned or crossed by such toll bridge
within a distance of ten miles from either side of such toll
bridge excepting bridges or other highway crossings actually
in existence and being maintained, or for which there was
outstanding an existing and lawfully issued franchise, at the
[Title 47 RCW—page 173]
47.56.230
Title 47 RCW: Public Highways and Transportation
time of the location of such toll bridge and prior to the time of
the authorization of such bonds, and no ferry or other similar
means of crossing the said waters within the said distance and
connecting or plying directly or indirectly between the lands
or extensions thereof or abutments thereon on both sides of
the waters spanned or crossed by such bridge shall be maintained or operated or permitted or allowed: PROVIDED,
That ferries and other similar means of crossing actually in
existence and being maintained and operated, or for which
there was outstanding an existing and lawfully issued franchise, at the time of the location of such bridge and prior to
the time of the authorization of such bonds, may continue and
be permitted to be operated and maintained under such existing rights and franchises, or any lawful renewal or extension
thereof. The provisions of this section shall be binding upon
the state department of transportation, the state of Washington, and all of its departments, agencies, or instrumentalities
as well as any and all private, political, municipal, and public
corporations and subdivisions, including cities, counties, and
other political subdivisions, and the prohibitions of this section shall restrict and limit the powers of the legislature of the
state of Washington in respect to the matters herein mentioned as long as any of such bonds are outstanding and
unpaid and shall be deemed to constitute a contract to that
effect for the benefit of the holders of all such bonds. [1983
c 3 § 128; 1979 ex.s. c 212 § 19; 1979 c 131 § 8; 1961 c 13 §
47.56.220. Prior: 1937 c 173 § 13; RRS § 6524-13.]
*Reviser's note: RCW 47.56.714 was repealed by 1990 c 42 § 403,
effective September 1, 1990.
Severability—1979 ex.s. c 212: See note following RCW 47.56.740.
47.56.230
47.56.230 Toll bridges—Insurance or indemnity
bonds authorized. When any toll bridge or bridges authorized under this chapter is being built by the department, the
department may carry or cause to be carried an amount of
insurance or indemnity bond or bonds as protection against
loss or damage as the department may deem proper. The
department is hereby further empowered to carry such an
amount of insurance to cover any accident or destruction in
part or in whole to any toll bridge or toll bridges until all
bonds sold for the construction of the toll bridge or toll
bridges and interest accrued thereon have been fully
redeemed and paid. All moneys collected on any indemnity
bond or insurance policy as the result of any damage or injury
to the toll bridge or toll bridges shall be used for the purpose
of repairing or rebuilding the toll bridge or toll bridges as
long as there are revenue bonds against any such structure
outstanding and unredeemed. The department is also empowered to carry insurance or indemnity bonds insuring against
the loss of tolls or other revenues to be derived from any such
toll bridge or bridges by reason of any interruption in the use
of the toll bridge or toll bridges from any cause whatever, and
the proceeds of the insurance or indemnity bonds shall be
paid into the fund into which the tolls and other revenues of
the bridge thus insured are required to be paid and shall be
applied to the same purposes and in the same manner as other
moneys in the fund. The insurance or indemnity bonds may
be in an amount equal to the probable tolls and other revenues
to be received from the operation of the toll bridge or toll
bridges during any period of time that may be determined by
the department and fixed in its discretion, and be paid for out
[Title 47 RCW—page 174]
of the toll revenue fund as may be specified in the proceedings. The department may provide in the proceedings authorizing the issuance of bonds for the carrying of insurance as
authorized by this chapter, and the purchase and carrying of
insurance as authorized by this chapter, and the purchase and
carrying of such insurance shall thereupon be obligatory
upon the department and be paid for out of the toll revenue
fund as may be specified in the proceedings. [1984 c 7 § 264;
1961 c 13 § 47.56.230. Prior: 1937 c 173 § 15; RRS § 652415.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.240
47.56.240 Toll bridges—Fixing of toll rates authorized—Lien of bonds on revenue. The commission is
hereby empowered to fix the rates of toll and other charges
for all toll bridges built under the terms of this chapter. Toll
charges so fixed may be changed from time to time as conditions warrant. The commission, in establishing toll charges,
shall give due consideration to the cost of operating and
maintaining such toll bridge or toll bridges including the cost
of insurance, and to the amount required annually to meet the
redemption of bonds and interest payments on them. The tolls
and charges shall be at all times fixed at rates to yield annual
revenue equal to annual operating and maintenance expenses
including insurance costs and all redemption payments and
interest charges of the bonds issued for any particular toll
bridge or toll bridges as the bonds become due. The bond
redemption and interest payments constitute a first direct and
exclusive charge and lien on all such tolls and other revenues
and interest thereon. Sinking funds created therefrom
received from the use and operation of the toll bridge or toll
bridges, and such tolls and revenues together with the interest
earned thereon shall constitute a trust fund for the security
and payment of such bonds and shall not be used or pledged
for any other purpose as long as any of these bonds are outstanding and unpaid. [1984 c 7 § 265; 1961 c 13 § 47.56.240.
Prior: 1937 c 173 § 9; RRS § 6524-9.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.242
47.56.242 Liquidation and closure of facility
accounts upon removal of tolls—Transfer to motor vehicle fund. The department is authorized to liquidate and close
toll facility trust and other facility accounts established outside the state treasury under chapter 47.56 RCW after the
removal of tolls from the facility for which the accounts were
established. Any balance remaining in the accounts shall
thereupon be transferred to the motor vehicle fund. In addition, the department may, after the removal of tolls from a
particular facility or facilities, require that all moneys transferred to the place of payment named in the revenue bonds,
for the purpose of paying principal or interest or for redemption of the bonds not then expended for such purpose, be
returned to the state treasurer for deposit in the motor vehicle
fund. [1984 c 7 § 266; 1967 ex.s. c 145 § 48.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.243
47.56.243 Liquidation and closure of facility
accounts upon removal of tolls—Satisfaction of claims.
After transfer of such moneys pursuant to RCW 47.56.242,
all valid claims against such accounts, including proper
(2004 Ed.)
State Toll Bridges, Tunnels, and Ferries
claims for refunds for unused commute media and other prepaid toll fees, may be satisfied, and any outstanding bonds or
any coupons may be redeemed by payment from the motor
vehicle fund upon proper application to and approval by the
department of transportation.
Neither the provisions of this section nor of RCW
47.56.242 shall be construed to preclude any remedy otherwise available to bond owners or coupon holders. [1983 c
167 § 119; 1967 ex.s. c 145 § 49.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
47.56.245
47.56.245 Toll charges retained until costs paid. The
department shall retain toll charges on all existing and future
facilities until all costs of investigation, financing, acquisition
of property, and construction advanced from the motor vehicle fund, and obligations incurred under RCW 47.56.250 and
chapter 16, Laws of 1945 have been fully paid.
(1) Except as provided in subsection (2) of this section,
with respect to every facility completed after March 19,
1953, costs of maintenance and operation shall be paid periodically out of the revenues of the facility in which such costs
were incurred.
(2) Where a state toll facility is constructed under chapter 47.46 RCW adjacent to or within two miles of an existing
bridge that was constructed under this chapter, revenue from
the toll facility may not be used to pay for costs of maintenance on the existing bridge. [2002 c 114 § 23; 1984 c 7 §
267; 1965 ex.s. c 170 § 53; 1961 c 13 § 47.56.245. Prior:
1953 c 220 § 6.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.247
47.56.247 Credit permits for vehicular passage. The
department may issue permits for the passage of vehicles on
any or all of its toll bridges, toll tunnels, toll roads, or for the
Washington state ferry system on a credit basis upon such
terms and conditions as the department deems proper. [1984
c 7 § 268; 1961 c 258 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
Severability—1961 c 258: "If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act,
or the application of the provision to other persons or circumstances is not
affected." [1961 c 258 § 3.]
47.56.248
47.56.248 Credit permits for vehicular passage—
Cash deposit or bond—Revocation of permit. The department may require the holder of the permit to furnish to and
maintain in force with the department a cash deposit or a corporate surety bond. The department may require the holder of
the permit to increase the amount of cash bond, or to furnish
an additional surety bond, or may reduce the amount of the
cash bond or surety bond required, as the amount of charges
incurred and regularity of payment warrant, or may revoke
any permit granted for failure of the holder to comply with
any of its terms. [1984 c 7 § 269; 1961 c 258 § 2.]
Severability—1984 c 7: See note following RCW 47.01.141.
Severability—1961 c 258: See note following RCW 47.56.247.
(2004 Ed.)
47.56.254
47.56.250
47.56.250 Contributions by the state or political subdivision—Bonds—Repayment. Whenever a proposed toll
bridge, toll road, toll tunnel, or any other toll facility of any
sort is to be constructed, any city, county, or other political
subdivision located in relation to such facility so as to benefit
directly or indirectly thereby, may, either jointly or separately, at the request of the transportation commission
advance or contribute money, or bonds, rights of way, labor,
materials, and other property toward the expense of building
the toll facility, and for preliminary surveys and the preparation of plans and estimates of cost therefor and other preliminary expenses. Any such city, county, or other political subdivision may, either jointly or separately, at the request of the
transportation commission advance or contribute money or
bonds for the purpose of guaranteeing the payment of interest
or principal on the bonds issued by the commission to finance
the toll facility. Appropriations for such purposes may be
made from any funds available, including county road funds
received from or credited by the state, or funds obtained by
excess tax levies made pursuant to law or the issuance of general obligation bonds for this purpose. General obligation
bonds issued by a city, county, or political subdivision may
with the consent of the commission be placed with the department of transportation to be sold by the department to provide
funds for such purpose. Money, or bonds, or property so
advanced or contributed may be immediately transferred or
delivered to the department to be used for the purpose for
which contribution was made. The commission may enter
into an agreement with a city, county, or other political subdivision to repay any money, or bonds or the value of a right
of way, labor, materials, or other property so advanced or
contributed. The commission may make such repayment to a
city, county, or other political subdivision and reimburse the
state for any expenditures made by it in connection with the
toll facility out of tolls and other revenues for the use of the
toll facility. [1977 ex.s. c 151 § 71; 1961 c 13 § 47.56.250.
Prior: 1959 c 162 § 1; 1955 c 166 § 1; 1937 c 173 § 12; RRS
§ 6524-12.]
47.56.253
47.56.253 Permits, leases, licenses to governmental
entities to use property of toll facility or ferry system. If
the department deems it in the public interest and not inconsistent with the use and operation of the toll facility involved,
the department may on application therefor issue a permit,
lease, or license to the state, or to any city, county, port district, or other political subdivision or municipal corporation
of the state to use any portion of the property of any toll
bridge, toll road, toll tunnel, or Washington state ferry system
upon such terms and conditions as the department may prescribe. [1984 c 7 § 270; 1961 c 257 § 2.]
Severability—1984 c 7: See note following RCW 47.01.141.
Severability—1961 c 257: "If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act,
or the application of the provision to other persons or circumstances is not
affected." [1961 c 257 § 7.]
47.56.254
47.56.254 Sale of unneeded property—Authorized—
Rules. If the secretary of transportation determines that any
real property (including lands, improvements thereon, and
any interests or estates) originally acquired for toll facility
purposes is no longer required for purposes of the depart[Title 47 RCW—page 175]
47.56.255
Title 47 RCW: Public Highways and Transportation
ment, the department shall offer it for sale as authorized by
RCW 47.12.063 or 47.12.283. The department may adopt
rules further implementing this section. [1979 ex.s. c 189 §
4; 1977 ex.s. c 151 § 72; 1973 1st ex.s. c 177 § 3; 1961 c 257
§ 3.]
Effective date—1979 ex.s. c 189: See note following RCW 47.12.283.
Severability—1961 c 257: See note following RCW 47.56.253.
the state of Washington. This section does not apply to that
portion of the Tacoma Narrows bridge facility first opened to
traffic after June 13, 2002. [2002 c 114 § 20; 1983 c 3 § 129;
1961 c 13 § 47.56.270. Prior: 1939 c 5 § 4; RRS § 6524-3a.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
47.56.271
47.56.255 Sale of unneeded property—Certification
to governor—Execution, delivery of deed. When full payment for real property agreed to be sold as authorized by
RCW 47.56.254 has been received, the department may certify this fact to the governor, with a description of the land
and terms of the sale, and the governor may execute and the
secretary of state shall attest the deed and deliver it to the
grantee. [1984 c 7 § 271; 1973 1st ex.s. c 177 § 4; 1961 c 257
§ 4.]
47.56.255
Severability—1984 c 7: See note following RCW 47.01.141.
Severability—1961 c 257: See note following RCW 47.56.253.
47.56.256 Franchises for utility, railway, urban public transportation purposes. If the department deems it not
inconsistent with the use and operation of any department
facility, the department may grant franchises to persons,
associations, private or municipal corporations, the United
States government, or any agency thereof, to use any portion
of the property of any toll bridge, toll road, toll tunnel, or the
Washington state ferry system, including approaches thereto,
for the construction and maintenance of water pipes, flumes,
gas pipes, telephone, telegraph, and electric light and power
lines and conduits, trams or railways, any structures or facilities that are part of an urban public transportation system
owned or operated by a municipal corporation, agency, or
department of the state of Washington other than the department of transportation, and any other such facilities in the
manner of granting franchises on state highways. [1984 c 7 §
272; 1967 c 108 § 12; 1961 c 257 § 5.]
47.56.256
Severability—1984 c 7: See note following RCW 47.01.141.
Severability—1961 c 257: See note following RCW 47.56.253.
Urban public transportation system defined: RCW 47.04.082.
47.56.257 Deposit of moneys received under RCW
47.56.253 through 47.56.256. Any moneys received pursuant to the provisions of RCW 47.56.253 through 47.56.256
shall be deposited into the separate and proper trust fund with
the state treasurer established for the respective toll facility.
[1979 ex.s. c 189 § 5; 1961 c 257 § 6.]
47.56.257
Effective date—1979 ex.s. c 189: See note following RCW 47.12.283.
Severability—1961 c 257: See note following RCW 47.56.253.
47.56.270 Lake Washington and 1950 Tacoma Narrows bridges part of primary highways. The Lake Washington bridge and the 1950 Tacoma Narrows bridge in chapter 47.17 RCW made a part of the primary state highways of
the state of Washington, shall, upon completion, be operated,
maintained, kept up, and repaired by the department in the
manner provided in this chapter, and the cost of such operation, maintenance, upkeep, and repair shall be paid from
funds appropriated for the use of the department for the construction and maintenance of the primary state highways of
47.56.270
[Title 47 RCW—page 176]
47.56.271 1950 Tacoma Narrows bridge toll-free—
Exception. Except as otherwise provided in this section, the
1950 Tacoma Narrows bridge hereinbefore by the provisions
of RCW 47.17.065 and 47.56.270 made a part of the primary
state highways of the state shall be operated and maintained
by the department as a toll-free facility at such time as the
bonded indebtedness relating to the construction of the 1950
Tacoma Narrows bridge is wholly retired and tolls equaling
the indebtedness of the toll bridge authority incurred for the
construction of the 1950 Tacoma Narrows bridge to the
county of Pierce have been collected. Toll charges may be
imposed upon the 1950 Tacoma Narrows bridge only if that
bridge is included as part of a public toll bridge facility that
includes an additional toll bridge adjacent to the 1950
Tacoma Narrows bridge and constructed under RCW
47.46.080. [2002 c 114 § 21; 1983 c 3 § 130; 1965 c 50 § 1.]
Finding—Intent—2002 c 114: See RCW 47.46.011.
Captions not law—2002 c 114: See note following RCW 47.46.011.
47.56.273
47.56.273 Fox Island toll bridge—Need for removal
of tolls. Present tolls on the Fox Island toll bridge have
retarded the development of Fox Island for residential purposes because of the financial burden upon residents and
potential residents resulting from paying these tolls in addition to those imposed upon the Narrows bridge. The removal
or readjustment of tolls from the Fox Island toll bridge is
required in the interest of the orderly development of Fox
Island. The development of Fox Island will provide additional users of the Narrows bridge with a resultant increase of
revenue to the state from tolls due to such additional use.
[1961 c 13 § 47.56.273. Prior: 1957 c 270 § 1.]
47.56.282
47.56.282 Additional Lake Washington bridge (1957
Act)—Revenue bonds—Toll charges and other support.
The authority is hereby authorized by resolution to issue and
sell its revenue bonds in an amount sufficient to provide
funds to pay all costs of construction of an additional Lake
Washington bridge and approaches and all costs of construction or any alterations to the existing Lake Washington
bridge or its approaches as a result of the construction of the
additional bridge, including but not limited to all costs of survey, acquisition of rights of way, design, engineering, all
expenses of issuance and sale of such bonds, and to pay interest on said bonds during construction and for six months after
tolls are first imposed.
Said revenue bonds shall constitute obligations only of
the Washington toll bridge authority and shall be payable
both principal and interest from the tolls and revenues
derived from the operation of said toll facility as hereinbefore
constituted and from any other moneys or funds available
therefor. Said bonds shall not constitute an indebtedness of
the state of Washington and shall contain a recital on the face
thereof to that effect, and shall be negotiable instruments
(2004 Ed.)
State Toll Bridges, Tunnels, and Ferries
under the law merchant. Such bonds shall include a covenant
that the payment or redemption thereof and the interest
thereon are secured by a first and direct charge and lien on all
of the tolls and other revenues received from the operation of
said toll facility and from any interest which may be earned
from the deposit or investment of any such revenues, except
for payment of costs of operation, maintenance and necessary
repairs of said facility. The tolls and charges to be imposed
shall be fixed in such amounts so that when collected they
will produce revenues that shall be at least equal to expenses
of operating, maintaining and repairing said toll facility,
including all insurance costs, amounts for adequate reserves
and coverage of annual debt service on said bonds, and all
payments necessary to pay the principal thereof and interest
thereon. [1965 ex.s. c 170 § 56; 1961 c 13 § 47.56.282. Prior:
1957 c 266 § 2.]
Reviser's note: Powers, duties, and functions of toll bridge authority
transferred to department of transportation; see RCW 47.01.031. Term
"authority" means department of transportation; see RCW 47.04.015.
47.56.284 Additional Lake Washington bridge (1957
Act)—Continuous project—Authorization of other additional bridges. The existing Lake Washington bridge, the
toll bridge authorized in chapter 266, Laws of 1957, and any
other bridge hereafter constructed across Lake Washington,
are hereby construed and designated as a continuous project
within the terms and provisions of RCW 47.56.070; and notwithstanding the provisions of RCW 47.56.220, the department may authorize additional toll bridges across Lake
Washington at such times as traffic may warrant and at such
sites as deemed feasible. [1984 c 7 § 273; 1961 c 13 §
47.56.284. Prior: 1957 c 266 § 4.]
47.56.284
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.286 Additional Lake Washington bridge (1957
Act)—Interpretation. The provisions of chapter 47.56
RCW, except where inconsistent with RCW 47.56.282
through 47.56.286, shall govern and be controlling in all matters and things necessary to carry out the purposes of RCW
47.56.282 through 47.56.286. Nothing in RCW 47.56.282
through 47.56.286 is intended to amend, alter, modify, or
repeal any of the provisions of any statute relating to the powers and duties of the department except as such powers and
duties are amplified or modified by the specific provisions of
RCW 47.56.282 through 47.56.286 for the uses and purposes
herein set forth. RCW 47.56.282 through 47.56.286 are additional to such existing statutes and concurrent therewith.
[1985 c 7 § 114; 1984 c 7 § 274; 1961 c 13 § 47.56.286. Prior:
1957 c 266 § 6.]
47.56.286
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.287 Second Lake Washington bridge—Use of
motor vehicle fund to pay deficits. To the extent that revenues from the imposition of tolls and franchise fees for use of
the second Lake Washington bridge authorized and constructed under the provisions of *RCW 47.56.281 are insufficient to meet costs of maintenance and operation and
required payments of principal, interest, and other charges
incidental to the issuance, sale, and retirement of the bonds
issued pursuant to the provisions of RCW 47.56.282 or on
any subsequent refunding bond issues, the department shall
47.56.287
(2004 Ed.)
47.56.310
use moneys in the motor vehicle fund to pay such deficits.
[1984 c 7 § 275; 1965 ex.s. c 170 § 54.]
*Reviser's note: RCW 47.56.281 was decodified by 1984 c 7 § 387.
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.288 Second Lake Washington bridge—Designation of funds to pay deficits—Pledge of excise tax proceeds. Any funds required to pay such deficits shall be from
the proceeds of state excise taxes on motor vehicle fuels and
shall be taken from that portion of the motor vehicle fund
which is or may be appropriated for state highway purposes,
and shall never constitute a charge against any allocations of
such funds to counties, cities and towns unless and until the
amount of the motor vehicle fund arising from the excise
taxes on motor vehicle fuels and available for state highway
purposes proves insufficient to meet such deficits.
The proceeds of such excise taxes are hereby pledged to
the payment of any such deficits in the costs of maintenance
and operation of the bridge and in the payment of principal
and interest which may arise on account of the bonds issued
under the provisions of RCW 47.56.282, and the legislature
hereby agrees to continue to impose the same excise taxes on
motor vehicle fuels in amounts sufficient to pay, when due,
such deficits. [1965 ex.s. c 170 § 55.]
47.56.288
47.56.290
47.56.290 Additional Lake Washington bridge (1953
Act)—Appropriation—Repayment from bond issue.
There is hereby appropriated from the motor vehicle fund to
the Washington toll bridge authority for the biennium ending
March 31, 1955, the sum of two hundred thousand dollars or
so much thereof as may be necessary to carry out the provisions of chapter 192, Laws of 1953, which sum shall be considered as a loan from the motor vehicle fund to be repaid to
said fund on the sale of bonds issued in connection therewith.
[1961 c 13 § 47.56.290. Prior: 1953 c 192 § 2.]
47.56.291
47.56.291 Additional Lake Washington bridge in
vicinity of first bridge—Design and construction authorized. Notwithstanding the provisions of RCW 47.56.220,
the Washington state highway commission is authorized to
design and construct an additional bridge across Lake Washington at a site in the vicinity of the first Lake Washington
bridge. [1965 ex.s. c 170 § 57.]
Reviser's note: Powers, duties, and functions of highway commission
transferred to department of transportation; see RCW 47.01.031. Term
"Washington state highway commission" means department of transportation; see RCW 47.04.015.
47.56.310
47.56.310 Additional Columbia river bridge—Vancouver to Portland bridges—Cooperation with Oregon.
The Washington toll bridge authority is hereby authorized in
conjunction with the Oregon state highway commission, to
erect an additional bridge or so much thereof as may be
agreed upon with the Oregon state highway commission,
including approaches thereto, across the Columbia river adjacent to the existing interstate bridge between Vancouver,
Washington, and Portland, Oregon, and to reconstruct and
improve the said existing interstate bridge and its approaches
or so much thereof as may be agreed upon with the Oregon
state highway commission. Such additional bridge, together
with the existing interstate bridge, shall be an integral part of
[Title 47 RCW—page 177]
47.56.320
Title 47 RCW: Public Highways and Transportation
U.S. highway No. 99, and to the Oregon boundary shall be a
part of primary state highway No. 1. All acts necessary to the
design and construction of said new bridge and approaches
thereto and the reconstruction and alteration of the existing
bridge and approaches may be done and performed by either
the Oregon state highway commission or the Washington toll
bridge authority with the approval of the other or by both of
them jointly. [1961 c 13 § 47.56.310. Prior: 1955 c 152 § 1;
1953 c 132 § 1.]
Reviser's note: Powers, duties, and functions of toll bridge authority
transferred to department of transportation; see RCW 47.01.031. Term
"Washington toll bridge authority" means department of transportation; see
RCW 47.04.015.
47.56.320 Additional Columbia river bridge—Tolls.
The Washington toll bridge authority is authorized to enter
into an agreement with the Oregon state highway commission that the new bridge, including approaches, provided for
herein shall be merged and consolidated with the existing
interstate bridge, including its approaches, located between
Vancouver, Washington and Portland, Oregon so that both
bridges shall be and become a single toll facility.
The Washington toll bridge authority is hereby authorized to operate and to assume the full control of said toll
facility and each portion thereof, whether within or without
the borders of the state of Washington, with full power to
impose and collect tolls from the users of both bridges constituting said toll facility for the purpose of providing revenue at
least sufficient to pay the cost and incidental expenses of construction of the new bridge including approaches thereto in
both states, the reconstruction and improvement of the existing interstate bridge including approaches thereto in both
states, the cost of maintaining, operating and repairing both
of said bridges while the same are operated as said toll facility, and for the payment of the principal of and interest on its
revenue bonds authorized by, and for the purposes set forth
in, RCW 47.56.310 through 47.56.345. [1961 c 13 §
47.56.320. Prior: 1955 c 152 § 2; 1953 c 132 § 2.]
47.56.320
Reviser's note: Powers, duties, and functions of toll bridge authority
transferred to department of transportation; see RCW 47.01.031. Term
"Washington toll bridge authority" means department of transportation; see
RCW 47.04.015.
47.56.330 Additional Columbia river bridge—
Agreements with Oregon authorized. The Washington toll
bridge authority and the Washington state highway commission are hereby authorized to enter into such agreements with
the Oregon state highway commission as they shall find necessary or convenient to carry out the purposes of RCW
47.56.310 through 47.56.345.
Any such agreements may include, but shall not be limited to, the following:
(1) A provision that all acts pertaining to the design and
construction of said new bridge and the reconstruction and
improvement of the existing interstate bridge may be done
and performed by the Oregon state highway commission or
the Washington toll bridge authority, with the approval of the
other, or by both, and that any and all contracts for the construction of the new bridge and the reconstruction and
improvement of the existing bridge shall be awarded in the
name of the state of Oregon by and through its state highway
commission or the state of Washington under direction of the
47.56.330
[Title 47 RCW—page 178]
Washington toll bridge authority, or both: PROVIDED, That
there shall be a further provision that each state shall have full
power to design and construct approaches to each bridge
within the respective boundaries of said state with reimbursement from the proceeds of the sale of revenue bonds to be
issued.
(2) A provision that the state of Oregon, the Oregon state
highway commission, and any other duly constituted agency
of the state of Oregon, the state of Washington, the Washington toll bridge authority, the Washington state highway commission, and any other duly constituted agency of the state of
Washington shall be reimbursed out of the proceeds of the
sale of such bonds for any advances they may have made or
expenses they may have incurred for any of the purposes for
which said revenue bonds may be issued, after duly verified,
itemized statements of such advances and expenses have
been submitted to and jointly approved by the Oregon state
highway commission and Washington toll bridge authority.
(3) A provision that during the period of operation of
said bridges and the approaches thereto as a toll facility all
maintenance and repair work may be performed by either the
Oregon state highway commission or by the Washington toll
bridge authority with a provision for reimbursement of the
costs of such maintenance and repair from revenue derived
from the collection of tolls on said toll facility.
Any such agreements shall include the following provisions:
(1) A provision that the new bridge and approaches provided for herein shall be consolidated and merged with the
existing interstate bridge and its approaches located between
Vancouver, Washington and Portland, Oregon so that both
bridges shall be and become a single toll facility.
(2) A provision that the Washington toll bridge authority
shall assume and have complete responsibility for the operation of both bridges and approaches thereto as a single toll
facility except as to repair and maintenance, and with full
power in the Washington toll bridge authority to impose and
collect all toll charges from the users of said bridges and to
disburse the revenue derived therefrom for the payment of
expenses of maintenance and operation and repair thereof, all
costs of constructing said new bridge and reconstructing and
improving said existing bridge and all expenses incidental
thereto, and the payment of the principal of and the interest
on the revenue bonds herein provided for.
(3) A provision that the Washington toll bridge authority
shall provide for the issuance, sale and payment of revenue
bonds payable solely from the revenue derived from the
imposition and collection of tolls upon both bridges as a single toll facility, and that such bonds shall be in such amounts
as to provide funds with which to pay the costs of the design
and construction of the proposed new bridge, including the
approaches thereto in both states and the costs of acquisition
of rights of way therefor, the reconstruction and alteration of
the existing bridge and approaches thereto, expenses incident
to the issuance of such bonds including the payment of interest for the period beginning with the date of issuance thereof
and ending at the expiration of six months after tolls are first
imposed, and a reasonable amount for working capital and
prepaid insurance, with the further provision that any sale of
the bonds to be issued shall be approved by the Oregon state
highway commission.
(2004 Ed.)
State Toll Bridges, Tunnels, and Ferries
(4) A provision that the Washington toll bridge authority, after consultation with the Oregon state highway commission, shall fix the classifications and amounts of tolls to
be charged and collected from users of said toll facility with
power after consultation with the Oregon state highway commission to revise the same if deemed necessary, and the time
or times when such tolls shall first be imposed, with the further provision that such toll charges shall be removed after all
costs of construction of the new bridge and approaches
thereto and the reconstruction and improvement of the existing bridge and approaches thereto, including all incidental
costs, shall have been paid, and all of said revenue bonds, and
interest thereon, issued and sold pursuant to the authority of
RCW 47.56.310 through 47.56.345 shall have been fully paid
and redeemed. [1961 c 13 § 47.56.330. Prior: 1955 c 152 §
4; 1953 c 132 § 3.]
Reviser's note: Powers, duties, and functions of toll bridge authority
and highway commission transferred to department of transportation; see
RCW 47.01.031. Terms "Washington toll bridge authority" and "Washington state highway commission" mean department of transportation; see
RCW 47.04.015.
47.56.340
47.56.340 Additional Columbia river bridge—When
toll free. Both the bridges herein provided for shall be operated as toll-free bridges whenever the costs of construction of
the new bridge and approaches thereto and the reconstruction
and improvement of the existing bridge and approaches
thereto, including all incidental costs shall have been paid,
and when all of said revenue bonds and interest thereon
issued and sold pursuant to the authority of RCW 47.56.310
through 47.56.345 shall have been fully paid and redeemed.
[1961 c 13 § 47.56.340. Prior: 1955 c 152 § 3; 1953 c 132 §
4.]
47.56.343
47.56.343 Additional Columbia river bridge—Revenue bonds. The Washington toll bridge authority shall have
the power and is hereby authorized by resolution to issue and
sell its revenue bonds in an amount sufficient to provide
funds to pay all the costs of construction of the new bridge
and approaches thereto and the reconstruction and improvement of the existing bridge and approaches thereto, including
all costs of survey, acquisition of rights of way, engineering,
legal and incidental expenses, to pay the interest due thereon
during the period beginning with the date of issue of the
bonds and ending at the expiration of six months after the
first imposition and collection of tolls from the users of said
toll facility, and to pay amounts that will provide a reasonable
sum for working capital and prepaid insurance and all costs
incidental to the issuance and sale of the bonds.
Except as may be otherwise specifically provided in
RCW 47.56.310 through 47.56.345, the provisions of chapter
47.56 RCW shall govern the issuance and sale of said revenue bonds, the execution thereof, the disbursement of the
proceeds of sale thereof, the interest rate or rates thereon,
their form, terms, conditions, covenants, negotiability,
denominations, maturity date or dates, the creation of special
funds or accounts safeguarding and providing for the payment of the principal thereof and interest thereon, and their
manner of redemption and retirement.
Said revenue bonds shall constitute obligations only of
the Washington toll bridge authority and shall be payable
(2004 Ed.)
47.56.360
both principal and interest solely from the tolls and revenues
derived from the operation of said toll facility as hereinbefore
constituted. Said bonds shall not constitute an indebtedness
of the state of Washington and shall contain a recital on the
face thereof to that effect, and shall be negotiable instruments
under the law merchant. Such bonds shall include a covenant
that the payment or redemption thereof and the interest
thereon are secured by a first and direct charge and lien on all
of the tolls and other revenues received from the operation of
said toll facility and from any interest which may be earned
from the deposit or investment of any such revenues, except
for payment of costs of operation, maintenance and necessary
repairs of said facility. The tolls and charges to be imposed
shall be fixed in such amounts so that when collected they
will produce revenues that shall be at least equal to expenses
of operating, maintaining and repairing said toll facility,
including all insurance costs, amounts for adequate reserves
and coverage of annual debt service on said bonds, and all
payments necessary to pay the principal thereof and interest
thereon. [1961 c 13 § 47.56.343. Prior: 1955 c 152 § 5.]
Reviser's note: Powers, duties, and functions of toll bridge authority
transferred to department of transportation; see RCW 47.01.031. Term
"Washington toll bridge authority" means department of transportation; see
RCW 47.04.015.
47.56.345
47.56.345 Additional Columbia river bridge—Construction—Severability. Except as may be otherwise specifically provided in RCW 47.56.310 through 47.56.345, the
provisions of chapter 47.56 RCW shall govern and be controlling in all matters and things necessary to carry out the
purposes of RCW 47.56.310 through 47.56.345. Nothing in
RCW 47.56.310 through 47.56.345 is intended to amend,
alter, modify, or repeal any of the provisions of any statute
relating to the powers and duties of the department except as
such powers and duties are amplified or modified by the specific provisions of RCW 47.56.310 through 47.56.345 for the
uses and purposes herein set forth, and RCW 47.56.310
through 47.56.345 shall be additional to such existing statutes
and concurrent therewith.
If any sentence, clause, or phrase of RCW 47.56.310
through 47.56.345 is held to be invalid or unconstitutional,
the invalidity or unconstitutionality thereof shall not affect
the validity or constitutionality of any other sentence, clause,
or phrase of RCW 47.56.310 through 47.56.345.
The provisions of RCW 47.56.310 through 47.56.345
shall be liberally construed so that the uses and purposes
hereof may be achieved and accomplished. [1984 c 7 § 276;
1961 c 13 § 47.56.345. Prior: 1955 c 152 § 6.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.360
47.56.360 Bridging Puget Sound, Hood Canal—
Operation, maintenance, prior charge upon revenue—
Appropriations to be repaid. All operation and maintenance on any project while tolls are collected thereon shall be
paid as they are incurred as a prior charge upon the revenue
and tolls collected upon such project. Any funds herein
appropriated from the motor vehicle fund to the Washington
toll bridge authority, together with the sum of two hundred
twenty-five thousand dollars heretofore appropriated by section 19, chapter 259, Laws of 1951, shall be considered as a
loan and repaid by the authority to the motor vehicle fund
[Title 47 RCW—page 179]
47.56.366
Title 47 RCW: Public Highways and Transportation
upon the sale of bonds of any project. [1961 c 13 §
47.56.360. Prior: 1953 c 78 § 2.]
Reviser's note: Powers, duties, and functions of toll bridge authority
transferred to department of transportation; see RCW 47.01.031. Term
"Washington toll bridge authority" means department of transportation; see
RCW 47.04.015.
47.56.366
47.56.366 Hood Canal bridge—Public sport fishing—Disclaimer of liability. The department may permit
public sport fishing from the Hood Canal bridge. The department may adopt rules governing public use of the bridge for
sport fishing to the end that such activity shall not interfere
with the primary use and operation of the bridge as a highway
facility. Notwithstanding the provisions of RCW 4.92.090 or
any other statute imposing liability upon the state of Washington, the state hereby disclaims any liability arising out of
loss or injury in connection with the public use of the Hood
Canal bridge for sport fishing purposes. [1984 c 7 § 277;
1963 c 240 § 2.]
Severability—1984 c 7: See note following RCW 47.01.141.
five thousand dollars or so much thereof as thereafter may be
necessary for the following purposes:
(1) Twenty-five thousand dollars of the appropriation
shall be available to study and make surveys, including traffic
studies acceptable to prospective bond purchasers or investment firms, of the feasibility of the construction of a toll
bridge between Lopez Island and San Juan Island in San Juan
county so as to permit ferry runs from the mainland to
Upright Head, overland travel from Upright Head to Roche
Harbor, and ferry runs from Roche Harbor to Sidney, British
Columbia. It shall be understood in such feasibility studies
that San Juan county shall construct and maintain all road
connections between the proposed bridge and the ferry landings at Upright Head and Roche Harbor.
(2) If as a result of the studies referred to above the toll
bridge authority determines the project is feasible, and if San
Juan county shall agree to sponsor such project and to conduct and maintain the road connections referred to above, one
hundred fifty thousand dollars shall be available for the location, foundation exploration, and design of such bridge.
[1961 c 13 § 47.56.410. Prior: 1957 c 141 § 1.]
47.56.380
47.56.380 Express highway—Tacoma-Seattle-Everett—Limited access. The department is authorized to study
and if feasible, after approval by the transportation commission to locate, construct, finance and operate as a toll road,
until paid for, an express highway from the vicinity of
Tacoma through Seattle to the vicinity of Everett. Right of
way shall be acquired as a limited access facility. [1984 c 7 §
278; 1961 c 13 § 47.56.380. Prior: 1953 c 183 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.390
47.56.390 Express highway—Operation as toll highway—Part of state system. The toll road, when completed,
shall become a part of the state highway system but may be
operated as a toll highway by the department until such time
as all costs of investigation, financing, acquisition of property, construction, maintenance, management, operation,
repayment of advances from the motor vehicle fund, and
obligations incurred under RCW 47.56.250 and chapter 16,
Laws of 1945, have been fully paid. [1984 c 7 § 279; 1961 c
13 § 47.56.390. Prior: 1953 c 183 § 2.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.400
47.56.400 Express highway—Powers and duties of
department. The department has the same powers, duties,
and functions with respect to toll roads as the Washington toll
bridge authority had with respect to toll bridges, and all the
provisions of chapter 47.56 RCW apply to and govern toll
roads insofar as is reasonably consistent and applicable,
except as otherwise provided in RCW 47.56.380 through
47.56.400. [1984 c 7 § 280; 1961 c 13 § 47.56.400. Prior:
1953 c 183 § 3.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.410
47.56.410 Lopez Island-San Juan toll bridge—
Appropriation—Study—Location, exploration, foundation, design. There is appropriated to the Washington toll
bridge authority from the motor vehicle fund for the biennium ending June 30, 1959, the sum of one hundred seventy[Title 47 RCW—page 180]
47.56.420
47.56.420 Lopez Island-San Juan toll bridge—Final
designs, construction, revenue bonds authorized. If the
project is deemed feasible by the authority, the authority shall
enter into final design plans, and construction thereof, issue
revenue bonds to pay all costs of the project and let contracts
in connection with the proposed project. Such revenue bonds
shall be issued in accordance with the applicable provisions
of RCW 47.56.080 through 47.56.250, and in addition to the
purposes above stated may be issued to provide funds for
paying all costs of issuance and sale of such bonds, and to pay
interest on said bonds during construction and for six months
thereafter. [1961 c 13 § 47.56.420. Prior: 1957 c 141 § 2.]
Reviser's note: Powers, duties, and functions of toll bridge authority
transferred to department of transportation; see RCW 47.01.031. Term
"authority" means department of transportation; see RCW 47.04.015.
47.56.430
47.56.430 Lopez Island-San Juan toll bridge—Operation, maintenance, prior charge upon revenue—Appropriations to be repaid. All operation and maintenance on
any project while tolls are collected thereon shall be paid as
they are incurred as a prior charge upon the revenue and tolls
collected upon such project. Any funds herein appropriated
from the motor vehicle fund to the Washington toll bridge
authority shall be considered as a loan and repaid by the
authority to the motor vehicle fund upon the sale of bonds for
this project. [1961 c 13 § 47.56.430. Prior: 1957 c 141 § 3.]
Reviser's note: Powers, duties, and functions of toll bridge authority
transferred to department of transportation; see RCW 47.01.031. Term
"Washington toll bridge authority" means department of transportation; see
RCW 47.04.015.
47.56.440
47.56.440 Lopez Island-San Juan toll bridge—Effect
of toll bridge authority resolution No. 295—Ferry system
refunding revenue bonds. Nothing authorized by RCW
47.56.410 through 47.56.440 shall be undertaken or done in
any manner not in accord with any of the covenants and conditions contained in resolution No. 295 passed by the toll
bridge authority on February 9, 1955, providing for the sale
of Washington state ferry system refunding revenue bonds;
(2004 Ed.)
State Toll Bridges, Tunnels, and Ferries
and all things authorized by RCW 47.56.410 through
47.56.440, including but not limited to feasibility, studies,
location, design, construction and financing, shall be performed in accordance with the covenants and conditions of
said resolution. If the terms of such resolution shall require
that tolls on the bridge authorized by RCW 47.56.410
through 47.56.440 be used to redeem outstanding bonds
issued pursuant to said resolution, such tolls shall be so used.
[1961 c 13 § 47.56.440. Prior: 1957 c 141 § 4.]
47.56.450
47.56.450 Columbia river bridge at Biggs Rapids—
Authorized—Cooperation with Klickitat county, highway commission, Oregon highway commission and Sherman county. If the Washington toll bridge authority should
conclude that the construction of a toll bridge across the
Columbia river in the vicinity of Biggs Rapids is feasible as a
result of studies presently being conducted, the authority is
hereby authorized, in conjunction with Klickitat county, the
Washington state highway commission, the Oregon state
highway commission, and Sherman county, Oregon, to
design and construct a toll bridge at such location. All acts
necessary to the design and construction of such bridge and
approaches thereto may be done by the Washington toll
bridge authority, Klickitat county, the Washington state highway commission, the Oregon state highway commission,
Sherman county, Oregon, or any of such governmental agencies pursuant to agreement with the Washington toll bridge
authority. [1961 c 13 § 47.56.450. Prior: 1957 c 142 § 1.]
Reviser's note: Powers, duties, and functions of toll bridge authority
and highway commission transferred to department of transportation; see
RCW 47.01.031. Terms "Washington toll bridge authority" and "Washington state highway commission" mean department of transportation; see
RCW 47.04.015.
47.56.490
proceeds of sale thereof, the interest rate or rates thereon,
their form, terms, conditions, covenants, negotiability,
denomination, maturity date or dates, the creation of special
funds or accounts safeguarding and providing for the payment of the principal therefor and interest thereon, and their
manner of redemption and retirement.
Said revenue bonds shall constitute obligations only of
the Washington toll bridge authority and shall be payable
both principal and interest solely from the tolls and revenues
derived from the operation of said toll facility as hereinbefore
constituted. Said bonds shall not constitute an indebtedness
of the state of Washington and shall contain a recital on the
face thereof to that effect, and shall be negotiable instruments
under the law merchant. Such bonds shall include a covenant
that the payment or redemption thereof and the interest
thereon are secured by a first and direct charge and lien on all
of the tolls and other revenues received from the operation of
said toll facility and from any interest which may be earned
from the deposit or investment of any such revenues, except
for payment of costs of operation, maintenance and necessary
repairs of said facility. The tolls and charges to be imposed
shall be fixed in such amounts so that when collected they
will produce revenues that shall be at least equal to expenses
of operating, maintaining and repairing said toll facility,
including all insurance costs, amounts for adequate reserves
and coverage of annual debt service on said bonds, and all
payments necessary to pay the principal thereof and interest
thereon. [1961 c 13 § 47.56.470. Prior: 1957 c 142 § 3.]
Reviser's note: Powers, duties, and functions of toll bridge authority
transferred to department of transportation; see RCW 47.01.031. Term
"Washington toll bridge authority" means department of transportation; see
RCW 47.04.015.
47.56.480
47.56.460
47.56.460 Columbia river bridge at Biggs Rapids—
Appropriation—Repayment from bond issue. There is
appropriated from the motor vehicle fund for the biennium
ending June 30, 1959, the sum of one hundred fifty thousand
dollars, or as much thereof as may be necessary for the purpose of location, design, preparation of cost estimates, and all
other things preliminary to the construction of such bridge.
Any funds herein appropriated from the motor vehicle fund
to the Washington toll bridge authority shall be considered as
a loan and repaid by the authority to the motor vehicle fund
upon the sale of bonds for this project as provided in RCW
47.56.470. [1961 c 13 § 47.56.460. Prior: 1957 c 142 § 2.]
47.56.470
47.56.470 Columbia river bridge at Biggs Rapids—
Revenue bonds. The Washington toll bridge authority is
hereby authorized by resolution to issue and sell its revenue
bonds in an amount sufficient to provide funds to pay all the
costs of construction of such bridge and approaches thereto,
including but not limited to all costs of survey, acquisition of
rights of way, design, engineering, all expenses of issuance
and sale of such bonds, and to pay interest on said bonds during construction and for six months after tolls are first
imposed.
Except as may be otherwise specifically provided in
RCW 47.56.450 through 47.56.500, the provisions of chapter
47.56 RCW shall govern the issuance and sale of said revenue bonds, the execution thereof, the disbursement of the
(2004 Ed.)
47.56.480 Columbia river bridge at Biggs Rapids—
Construction of act. The provisions of chapter 47.56 RCW
shall govern and be controlling in all matters and things necessary to carry out the purposes of RCW 47.56.450 through
47.56.500. Nothing in RCW 47.56.450 through 47.56.500 is
intended to amend, alter, modify or repeal any of the provisions of any statute relating to the powers and duties of the
Washington toll bridge authority except as such powers and
duties are amplified or modified by the specific provisions of
RCW 47.56.450 through 47.56.500 for the uses and purposes
herein set forth, and RCW 47.56.450 through 47.56.500 shall
be additional to such existing statutes and concurrent therewith. [1961 c 13 § 47.56.480. Prior: 1957 c 142 § 4.]
Reviser's note: Powers, duties, and functions of toll bridge authority
transferred to department of transportation; see RCW 47.01.031. Term
"Washington toll bridge authority" means department of transportation; see
RCW 47.04.015.
47.56.490
47.56.490 Columbia river bridge at Biggs Rapids—
Powers of department—Tolls. The department is authorized to operate and to assume the full control of the toll facility and each portion thereof, whether within or without the
borders of the state of Washington, with full power to impose
and collect tolls from the users of the bridge for the purpose
of providing revenue at least sufficient to pay the cost and
incidental expenses of construction, maintenance, repair, and
operation of the bridge and approaches in both states, and for
the payment of the principal of and interest on its revenue
[Title 47 RCW—page 181]
47.56.500
Title 47 RCW: Public Highways and Transportation
bonds as authorized by RCW 47.56.470. [1984 c 7 § 281;
1961 c 13 § 47.56.490. Prior: 1957 c 142 § 5.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.500
47.56.500 Columbia river bridge at Biggs Rapids—
Agreements authorized. The Washington toll bridge
authority, the Washington state highway commission and
Klickitat county are each authorized to enter into such agreement with each other, the Oregon state highway commission
and Sherman county, Oregon, as they shall find necessary
and convenient to carry out the purposes of RCW 47.56.450
through 47.56.500; and the Washington toll bridge authority,
the Washington state highway commission and Klickitat
county are each authorized to do any and all acts contained in
such agreement and necessary and convenient to carry out the
purposes of RCW 47.56.450 through 47.56.500.
Such agreement shall include, but shall not be restricted
to the following provisions:
(1) A provision that the Washington toll bridge authority
shall assume and have complete responsibility for the operation of such bridge and approaches thereto, and with full
power in the Washington toll bridge authority to impose and
collect all toll charges from the users of such bridge and to
disburse the revenue derived therefrom for the expenses of
maintenance and operation and repair thereof, all costs of
construction, and the payment of principal and interest on any
revenue bonds herein provided for.
(2) A provision that the Washington toll bridge authority
shall provide for the issuance, sale and payment of revenue
bonds payable solely from the revenue derived from the
imposition and collection of tolls upon such toll bridge.
(3) A provision that the Washington toll bridge authority, after consultation with the other governmental agencies
who are parties to such agreement, shall fix and revise the
classifications and amounts of tolls to be charged and collected from the users of the toll bridge, with the further provision that such toll charges shall be removed after all costs of
planning, designing, and construction of such toll bridge and
approaches thereto and all incidental costs shall have been
paid, and all of said revenue bonds, and interest thereon,
issued and sold pursuant to RCW 47.56.450 through
47.56.500 shall have been fully paid and redeemed.
(4) A provision that all acts pertaining to the design and
construction of such toll bridge may be done and performed
by the Oregon state highway commission, the Washington
state highway commission or the Washington toll bridge
authority, or any of them, and that any and all contracts for
the construction of such toll bridge shall be awarded in the
name of the state of Oregon by and through its state highway
commission or the state of Washington by and through its
state highway commission or its toll bridge authority, or all of
them.
(5) A provision that the state of Washington, the state of
Oregon, and all governmental agencies party to such agreement shall be reimbursed out of the proceeds of the sale of
such bonds for any advances they may have made or
expenses they may have incurred for any of the purposes for
which said revenue bonds may be issued, after duly verified
itemized statements of such advances and expenses have
[Title 47 RCW—page 182]
been submitted to and been approved by all parties to such
agreement.
(6) A provision that during the period of operation of
such bridge and approaches thereto as a toll facility all maintenance and repair may be performed by either the Oregon
state highway commission or the Washington state highway
commission with a provision for reimbursement of the costs
of such maintenance and repair from revenue derived from
the collection of tolls on such bridge. [1961 c 13 § 47.56.500.
Prior: 1957 c 142 § 6.]
Reviser's note: Powers, duties, and functions of toll bridge authority
and highway commission transferred to department of transportation; see
RCW 47.01.031. Terms "Washington toll bridge authority" and "Washington state highway commission" mean department of transportation; see
RCW 47.04.015.
47.56.580
47.56.580 Naches Pass tunnel—What studies and
surveys shall include. Such studies and surveys shall
include but shall not be confined to the following:
(1) The most desirable design, tunnel approaches, and
connecting roads;
(2) The most desirable location;
(3) The cost of construction and the length of construction time required;
(4) The financial feasibility of the tunnel and the amount,
if any, of supplementary aid required to finance it;
(5) The relative economic benefit to counties, cities, or
other political subdivisions to be principally served by construction of the tunnel;
(6) The benefit to the state highway system, taking into
account the statewide interest in the tunnel and the estimated
additional motor vehicle fuel tax revenue which would
accrue to the motor vehicle fund as a result of the construction of the tunnel. [1961 c 13 § 47.56.580. Prior: 1959 c 292
§ 2.]
47.56.590
47.56.590 Naches Pass tunnel—Plan for financing.
Upon the completion of such studies and surveys, the highway commission and the toll bridge authority, in cooperation
with the joint fact-finding committee on highways, streets
and bridges, shall prepare a plan for financing the project.
The plan shall include the cost of the entire project; the portion of such total cost which can be financed by the issuance
of toll bridge authority revenue bonds; the portion of such
total cost and the amount of guarantee funds which should be
contributed or advanced by any political subdivisions to be
economically benefited by construction of the project; and
the portion of such total cost and the amount of guarantee
funds which should be contributed from that portion of the
motor vehicle fund available to the department of highways
for state highway purposes. When completed, the financing
plan shall be adopted by resolution of the commission and the
authority. [1961 c 13 § 47.56.590. Prior: 1959 c 292 § 3.]
Reviser's note: Powers, duties, and functions of highway commission
and toll bridge authority transferred to department of transportation; see
RCW 47.01.031. Terms "highway commission" and "toll bridge authority"
mean department of transportation; see RCW 47.04.015.
47.56.600
47.56.600 Naches Pass tunnel—Design. Upon adoption of the financing plan the commission and the authority,
acting jointly, shall forthwith proceed to make the design for
(2004 Ed.)
State Toll Bridges, Tunnels, and Ferries
the entire project. [1961 c 13 § 47.56.600. Prior: 1959 c 292
§ 4.]
Reviser's note: Powers, duties, and functions of highway commission
and toll bridge authority transferred to department of transportation; see
RCW 47.01.031. Terms "commission" and "authority" mean department of
transportation; see RCW 47.04.015.
47.56.610
47.56.610 Naches Pass tunnel—Contribution by
political subdivisions. After adoption of the financing plan,
the authority and the highway commission, acting jointly,
shall request any political subdivision which will be benefited by the construction of the project, to advance or contribute money or bonds toward the expenses of construction or to
guarantee toll bridge authority revenue bonds to be issued to
finance the project. [1961 c 13 § 47.56.610. Prior: 1959 c
292 § 5.]
Reviser's note: Powers, duties, and functions of highway commission
and toll bridge authority transferred to department of transportation; see
RCW 47.01.031. Terms "authority," "toll bridge authority," and "highway
commission" mean department of transportation; see RCW 47.04.015.
47.56.630
47.56.630 Naches Pass tunnel—Repayment to motor
vehicle fund of funds appropriated. All funds herein
appropriated from the motor vehicle fund to the Washington
state highway commission and the Washington toll bridge
authority shall be considered as a loan and shall be repaid by
the commission and the authority to the motor vehicle fund
upon the sale of bonds for this project. [1961 c 13 §
47.56.630. Prior: 1959 c 292 § 7.]
Reviser's note: Powers, duties, and functions of highway commission
and toll bridge authority transferred to department of transportation; see
RCW 47.01.031. Terms "Washington state highway commission" and
"Washington toll bridge authority" mean department of transportation; see
RCW 47.04.015.
47.56.646
47.56.640
47.56.640 Bridging lower Columbia river in vicinity
of Astoria-Megler. The Washington state highway commission is hereby authorized in conjunction with the Oregon
state highway commission to erect a bridge or so much
thereof as may be agreed upon with the Oregon state highway
commission, including approaches thereto, across the
Columbia river in the vicinity of Astoria, Oregon and Megler,
Washington. Such bridge shall be an integral part of U. S.
highway No. 101 and to the Oregon boundary shall be a part
of primary state highway No. 12. All acts necessary to the
design and construction of said new bridge and approaches
thereto may be done and performed by either the Oregon state
highway commission or the Washington state highway commission with the approval of the other or by both of them
jointly. [1961 c 209 § 1.]
Reviser's note: Powers, duties, and functions of highway commission
transferred to department of transportation; see RCW 47.01.031. Term
"Washington state highway commission" means department of transportation; see RCW 47.04.015.
47.56.643
47.56.643 Bridging lower Columbia river in vicinity
of Astoria-Megler—Agreements with United States—
Acceptance of public or private funds. In order to carry out
the provisions of RCW 47.56.640 through 47.56.667 the
Washington state highway commission may consult, cooperate and enter into agreements with the government of the
United States or any of its agencies and accept and expend
moneys from any public or private source, including the government of the United States or any political subdivision,
which is now or may be made available for carrying out the
purposes contained in RCW 47.56.640 through 47.56.667.
[1961 c 209 § 2.]
Reviser's note: Powers, duties, and functions of highway commission
transferred to department of transportation; see RCW 47.01.031. Term
"Washington state highway commission" means department of transportation; see RCW 47.04.015.
47.56.631
47.56.631 Naches Pass tunnel—Additional studies—
Route of highway and tunnel—Appropriation. The
Washington toll bridge authority is authorized and directed to
make all necessary traffic studies, acceptable to prospective
bond purchasers or investment firms to determine the amount
of subsidy or other financial assistance necessary to make
feasible the construction of a toll highway and tunnel on primary state highway 5 through the Cascade mountains,
together with the necessary approaches connecting to existing highways. Said highway and tunnel project shall start on
state highway 5 near the junction of the White and Greenwater rivers; thence in an easterly direction through Greenwater
river drainage area to the west portal of the tunnel under Pyramid Park; thence to the east portal; thence following the
north fork of the Little Naches river to the Little Naches river;
thence down to its junction with the Bumping river at state
highway 5.
There is hereby appropriated from the motor vehicle
fund to the Washington toll bridge authority for the biennium
ending June 30, 1963 the sum of fifty thousand dollars to
carry out the provisions of this section. [1961 ex.s. c 21 §
18.]
Reviser's note: Powers, duties, and functions of toll bridge authority
transferred to department of transportation; see RCW 47.01.031. Term
"Washington toll bridge authority" means department of transportation; see
RCW 47.04.015.
(2004 Ed.)
47.56.646
47.56.646 Bridging lower Columbia river in vicinity
of Astoria-Megler—Agreements with Oregon—Provisions for Oregon bond issue, powers and duties of both
states, tolls, apportionment of costs, etc. Subject to the
conditions stated in RCW 47.56.658, the Washington state
highway commission is hereby authorized to enter into such
agreements with the Oregon state highway commission as it
shall find necessary or convenient to carry out the purposes of
RCW 47.56.640 through 47.56.667.
Any such agreements shall include, but shall not be limited to, the following:
(1) A provision that the state of Oregon or the Oregon
state highway commission shall issue general obligation
bonds in the aggregate principal sum of not to exceed twentyfour million dollars par value or so much thereof as shall be
required to pay all costs of location and construction of said
bridge, but excluding costs of location, relocation, improvement, construction or reconstruction of approaches as the
same are shown and described in "A Report On a Proposed
Bridge Across the Columbia River," prepared by the Oregon
and Washington state highway commissions, dated January,
1959. In determining the amount of money required for construction, there shall be taken into account all available financial contributions for such construction costs, of whatever
description and from whatever source.
[Title 47 RCW—page 183]
47.56.649
Title 47 RCW: Public Highways and Transportation
(2) A provision that to the extent that revenues derived
from the imposition and collection of tolls and franchise fees
for the use of the bridge in any year are insufficient to provide
for the payment of principal, interest and other charges incidental to the issuance, sale and retirement of the bonds issued
by Oregon or any subsequent refunding bond issues, the state
of Oregon will pay the first one hundred thousand dollars of
such deficit and the state of Washington is bound to pay,
when due, forty percent of the balance of such deficit for such
year from any moneys in the motor vehicle fund not otherwise pledged or from any other source available to the Washington state highway commission for said purpose: PROVIDED, That in no case shall the portion of such deficit paid
by the state of Washington exceed two hundred thousand dollars in any such year.
(3) A provision that the Oregon state highway commission shall assume and have complete responsibility for the
operation of the bridge as a toll facility and each portion
thereof, whether within or without the borders of Washington
and with full power in the Oregon state highway commission
to impose and collect all toll charges and franchise fees from
the users of said bridge and to disburse the revenue derived
therefrom for the following purposes in the following order:
(a) Payment of all costs of toll collection and insurance
in the event the bridge is insured.
(b) Payment of the principal, interest and other charges
incidental to the issuance, sale and retirement of the bonds
herein provided for including any subsequent refunding
bonds.
(4) A provision that the Oregon state highway commission, after consultation with the Washington state highway
commission shall fix the classifications and amounts of tolls
to be charged and collected from users of said toll facility
with power after consultation with the Washington state
highway commission to revise the same if deemed necessary,
and the time or times when such tolls shall first be imposed.
(5) A provision that all acts pertaining to the design and
construction of said bridge may be done and performed by
the Oregon state highway commission or the Washington
state highway commission with the approval of the other, or
by both, and that any and all contracts for the construction of
the bridge shall be awarded in the name of the state of Oregon
by and through its state highway commission or the state of
Washington by and through its state highway commission, or
both: PROVIDED, HOWEVER, That there shall be a further
provision that each state shall have full power to design and
construct approaches to the bridge within the respective
boundaries of each state. Such approaches shall constitute a
part of the state highways system of each state and the cost of
design, right of way and construction thereof shall be borne
by the respective states from any funds available for such
purposes. In the event design or construction of approaches is
included in any contract for the construction of the bridge, the
cost of such approaches within the respective boundaries of
each state shall be segregated and paid for by the respective
states.
Any such agreements may include, but shall not be limited to the following:
(1) A provision that the state of Oregon, the Oregon state
highway commission, and any other duly constituted agency
of the state of Oregon, the state of Washington, the Washing[Title 47 RCW—page 184]
ton toll bridge authority, the Washington state highway commission, and any other duly constituted agency of the state of
Washington shall be reimbursed out of the proceeds of the
sale of such bonds for any advances they may have made or
expenses they may have incurred subsequent to March 1,
1961 for any of the purposes for which said bonds may be
issued by the state of Oregon, after duly verified, itemized
statements of such advances and expenses have been submitted to and jointly approved by the Oregon state highway commission and Washington state highway commission.
(2) A provision that during the period of operation of
said bridge as a toll facility all or any part of the maintenance
and repair work may be performed by either the Oregon state
highway commission or by the Washington state highway
commission with a provision for payment of the costs of such
maintenance and repair one-half from the Oregon state highway commission and one-half from the Washington state
highway commission. [1961 c 209 § 3.]
Reviser's note: Powers, duties, and functions of highway commission
and toll bridge authority transferred to department of transportation; see
RCW 47.01.031. Terms "Washington state highway commission" and
"Washington toll bridge authority" mean department of transportation; see
RCW 47.04.015.
47.56.649
47.56.649 Bridging lower Columbia river in vicinity
of Astoria-Megler—Use of Washington motor vehicle fuel
taxes, motor vehicle fund to pay Oregon bonds if tolls and
fees insufficient. To the extent that all revenues from the
imposition and collection of tolls and franchise fees for use of
the bridge are insufficient to provide for the payment of principal, interest and other charges incidental to the issuance,
sale and retirement of the bonds issued by the state of Oregon
in connection with this project, or on any subsequent refunding bond issues, there is hereby imposed, to the extent provided in first subsection (2) of RCW 47.56.646, a first and
prior charge against all revenues hereafter derived from the
proceeds of state excise taxes on motor vehicle fuels now
directed by law to be deposited in the motor vehicle fund
available for state highway commission purposes.
To the extent that revenues of the project are insufficient
to meet required payments of principal, interest and other
charges incidental to the issuance, sale and retirement of
bonds, the Washington state highway commission shall use
moneys in the motor vehicle fund to pay its share of such deficits. [1961 c 209 § 4.]
Reviser's note: Powers, duties, and functions of highway commission
transferred to department of transportation; see RCW 47.01.031. Term
"Washington state highway commission" means department of transportation; see RCW 47.04.015.
47.56.652
47.56.652 Bridging lower Columbia river in vicinity
of Astoria-Megler—Procedure for this state paying deficiency in tolls and fees for Oregon bond issue. The payments provided for in RCW 47.56.649, as they come due,
shall be authorized by the Washington state highway commission and paid by warrants signed by the state treasurer,
upon the duly verified itemized statements of the Oregon
state highway commission showing the amount due from the
state of Washington required to meet its share of any deficit
computed as provided in [first] subsection (2) of RCW
47.56.646. [1961 c 209 § 5.]
(2004 Ed.)
State Toll Bridges, Tunnels, and Ferries
Reviser's note: Powers, duties, and functions of highway commission
transferred to department of transportation; see RCW 47.01.031. Term
"Washington state highway commission" means department of transportation; see RCW 47.04.015.
47.56.655
47.56.655 Bridging lower Columbia river in vicinity
of Astoria-Megler—Washington liability for costs—
Maintenance and repair—Approaches. The Washington
state highway commission shall pay one-half of all costs of
maintenance and repair of said bridge from funds appropriated for the use of the Washington state highway commission
for construction and maintenance of the primary state highways. The Washington state highway commission shall pay
for the costs of design, right of way and construction of
approaches to said bridge within the boundaries of the state of
Washington from funds appropriated for the use of the Washington state highway commission for construction and maintenance of the primary state highways or from any other
funds available for said purpose. [1961 c 209 § 6.]
Reviser's note: Powers, duties, and functions of highway commission
transferred to department of transportation; see RCW 47.01.031. Term
"Washington state highway commission" means department of transportation; see RCW 47.04.015.
47.56.658
47.56.658 Bridging lower Columbia river in vicinity
of Astoria-Megler—Financial responsibility of Pacific
county—Prior commitment required. The Washington
state highway commission shall not enter into agreements
with the Oregon state highway commission for the construction of the toll bridge over the lower Columbia river as authorized by RCW 47.56.646 unless and until:
Pacific county has, at the request of the state highway
commission, contributed or properly authorized the contribution of money or bonds in the sum of one hundred eighty-five
thousand dollars or so much thereof as may be necessary to
reimburse the Washington state highway commission for
costs of design and construction of the approaches to said
bridge within the boundaries of the state of Washington, such
contribution to be made by any of the methods authorized in
RCW 47.56.250. [1969 ex.s. c 281 § 52; 1961 c 209 § 7.]
Reviser's note: Powers, duties, and functions of highway commission
transferred to department of transportation; see RCW 47.01.031. Term
"Washington state highway commission" means department of transportation; see RCW 47.04.015.
47.56.659
47.56.659 Bridging lower Columbia river in vicinity
of Astoria-Megler—Contractual obligations of Pacific
county terminated. All accrued and unaccrued obligations
of Pacific county created by that certain contract between the
Washington state highway commission and Pacific county
dated June 20, 1961, entered into pursuant to *subsection (2)
of RCW 47.56.658 are hereby terminated. [1969 ex.s. c 281
§ 53.]
*Reviser's note: Subsection (2) of RCW 47.56.658 was deleted by
1969 ex.s. c 281 § 52.
47.56.661
47.56.661 Bridging lower Columbia river in vicinity
of Astoria-Megler—Deposit of contribution of Pacific
county in motor vehicle fund—Use. In the event Pacific
county makes the contribution authorized in *subsection (1)
of RCW 47.56.658, such contribution shall be placed in the
(2004 Ed.)
47.56.701
motor vehicle fund and shall be available for state highway
purposes. [1961 c 209 § 8.]
*Reviser's note: Subsection (1) of RCW 47.56.658 became the second
paragraph of RCW 47.56.658 when subsection (2) of RCW 47.56.658 was
deleted by 1969 ex.s. c 281 § 52.
47.56.667
47.56.667 Bridging lower Columbia river in vicinity
of Astoria-Megler—When toll free. The bridge herein provided for shall be operated as a toll-free bridge whenever the
bonds to be issued by the state of Oregon together with interest thereon have been fully paid, unless the state of Washington and the state of Oregon hereafter agree through their
highway commissions that tolls shall be retained on the
bridge to repay in whole or in part the respective states for
moneys advanced to pay principal or interest on the bonds
issued by the state of Oregon. [1961 c 209 § 10.]
Reviser's note: Powers, duties, and functions of highway commission
transferred to department of transportation; see RCW 47.01.031. Term
"highway commission" means department of transportation; see RCW
47.04.015.
47.56.700
47.56.700 Columbia river, Vernita bridge and highway approach from Richland—Authorized. If the Washington toll bridge authority shall conclude that the construction of a toll bridge across the Columbia river in the vicinity
of Vernita, including approaches, and a highway approach
from the vicinity of Richland to said toll bridge, are feasible,
the authority is hereby authorized to make all surveys, design
and construct said toll bridge and approaches. [1963 c 197 §
1.]
Reviser's note: Powers, duties, and functions of toll bridge authority
transferred to department of transportation; see RCW 47.01.031. Term
"Washington toll bridge authority" means department of transportation; see
RCW 47.04.015.
47.56.701
47.56.701 Columbia river, Vernita bridge and highway approach from Richland—Revenue bonds—Tolls
and charges. The Washington toll bridge authority is hereby
authorized by resolution to issue and sell its revenue bonds in
an amount sufficient to provide funds to pay all the costs of
construction of such bridge and approaches thereto, and the
highway approach from the vicinity of Richland to said
bridge, including but not limited to all costs of survey, acquisition of rights of way, design, engineering, all expenses of
issuance and sale of such bonds, and to pay interest on said
bonds during construction and for six months after tolls are
first imposed.
Except as may be otherwise specifically provided in
RCW *47.20.410, 47.20.415, and 47.56.700 through
47.56.706, the provisions of RCW 47.56.130 through
47.56.245 shall govern the issuance and sale of said revenue
bonds, the execution thereof, the disbursement of the proceeds of sale thereof, the interest rate or rates thereon, their
form, terms, conditions, covenants, negotiability, denomination, maturity date or dates, the creation of special funds or
accounts safeguarding and providing for the payment of the
principal therefor and interest thereon, and their manner of
redemption and retirement.
Said revenue bonds shall constitute obligations only of
the Washington toll bridge authority and shall be payable
both principal and interest from the tolls and revenues
derived from the operation of said toll bridge and from that
[Title 47 RCW—page 185]
47.56.702
Title 47 RCW: Public Highways and Transportation
portion of the motor vehicle fund as provided in RCW
47.56.702. Said bonds shall not constitute an indebtedness of
the state of Washington and shall contain a recital on the face
thereof to that effect, and shall be negotiable instruments
under the law merchant. Such bonds shall include a covenant
that the payment or redemption thereof and the interest
thereon are secured by a first and direct charge and lien on all
of the tolls and other revenues received from the operation of
said toll bridge and from any interest which may be earned
from the deposit or investment of any such revenues and such
sums as are pledged from the motor vehicle fund as provided
in RCW 47.56.702, except for payment of costs of operation,
maintenance and necessary repairs of said facility. The tolls
and charges to be imposed shall be fixed in such amounts so
that when collected they, together with said pledge from the
motor vehicle fund, will produce revenues that shall be at
least equal to expenses of operating, maintaining and repairing said toll facility, including all insurance costs, amounts
for adequate reserves and coverage of annual debt service on
said bonds, and all payments necessary to pay the principal
thereof and interest thereon.
Until all of said bonds are fully paid and until the motor
vehicle fund is fully reimbursed for all sums advanced therefrom to pay principal and interest on said bonds or any subsequent refunding bond issue, the tolls charged for the use of
said facility shall never be reduced below the sums specified
in the following schedule:
For every combination of vehicles and for buses
having a seating capacity for over fifteen
persons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For all trucks licensed for a maximum gross load of
over 8,000 lbs. other than a combination of
vehicles and all buses having a seating capacity
for less than sixteen persons . . . . . . . . . . . . . . .
For all other motor vehicles not specified above and
for motorcycles . . . . . . . . . . . . . . . . . . . . . . . . .
$0.75
$0.50
$0.25
Reviser's note: *(1) RCW 47.20.410 was repealed by 1970 ex.s. c 51 §
178; RCW 47.20.415 was repealed by 1967 ex.s. c 145 § 8.
(2) Powers, duties, and functions of toll bridge authority transferred to
department of transportation; see RCW 47.01.031. Term "Washington toll
bridge authority" means department of transportation; see RCW 47.04.015.
47.56.702 Columbia river, Vernita bridge and highway approach from Richland—Pledge of excise taxes
imposed on motor vehicle fuels. The department may
pledge the proceeds of all excise taxes imposed on motor
vehicle fuels now directed by law to be deposited in the
motor vehicle fund and which are available for appropriation
to the department for state highway purposes in the sum of
one hundred thousand dollars per year for the purpose of
guaranteeing the payment of principal and interest on bonds
issued by the authority as authorized in RCW 47.56.701 or
for sinking fund requirements or reserves established by the
authority with respect thereto or for guaranteeing the payment of principal and interest on any subsequent refunding
bond issues. To the extent of any such pledge the department
shall use such moneys to meet such obligations as they arise
but only to the extent that net revenues of the project are
insufficient therefor. [1984 c 7 § 282; 1963 c 197 § 3.]
[Title 47 RCW—page 186]
47.56.703 Columbia river, Vernita bridge and highway approach from Richland—Continued imposition of
such taxes. Whenever the department has made a pledge of
motor vehicle funds as authorized in RCW 47.56.702 the legislature agrees to continue to impose excise taxes on motor
vehicle fuels, and there is imposed a first and prior charge
thereon, in amounts sufficient to provide the department with
funds necessary to enable it to comply with the pledge. [1984
c 7 § 283; 1963 c 197 § 4.]
47.56.703
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.704 Columbia river, Vernita bridge and highway approach from Richland—Repayment of motor
vehicle fund money—Continuation of tolls. Any money
from the motor vehicle fund used by the department for payment of expenses of location, maintenance, repair, and operation of the bridge and approaches and highway approach,
and principal or interest on any bonds issued pursuant to
RCW 47.56.701 or any subsequent refunding bond issue
shall be repaid to the motor vehicle fund to be used for state
highway purposes from revenues of the project, and tolls
shall be continued for any additional length of time necessary
for this purpose. [1984 c 7 § 284; 1963 c 197 § 5.]
47.56.704
Severability—1984 c 7: See note following RCW 47.01.141.
[1963 c 197 § 2.]
47.56.702
Reviser's note: Powers, duties, and functions of toll bridge authority
transferred to department of transportation; see RCW 47.01.031. Term "toll
bridge authority" means department of transportation; see RCW 47.04.015.
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.705 Columbia river, Vernita bridge and highway approach from Richland—Facility to be part of highway system—Operation, collection of tolls. The toll facility, when completed, shall become a part of the state highway
system and the department is hereby authorized to operate
and to assume the full control of said toll bridge with full
power to collect tolls from the users of such bridge as established by the department for the purpose of providing revenue which, with the pledge from the motor vehicle fund provided for in RCW 47.56.702, shall be sufficient to pay all
costs and incidental expenses of location, construction, maintenance, repair, and operation of said bridge and approaches
and highway approach from the vicinity of Vernita to said
bridge, for the repayment of the principal and interest on its
revenue bonds, and reimbursement to the motor vehicle fund
of all sums expended therefrom under *RCW 47.20.415 and
47.56.700 through 47.56.706. [1983 c 3 § 131; 1963 c 197 §
6.]
47.56.705
*Reviser's note: RCW 47.20.415 was repealed by 1967 ex.s. c 145 § 8.
47.56.706 Columbia river, Vernita bridge and highway approach from Richland—Laws applicable—Construction of 1963 statute. Except as specifically provided in
*RCW 47.20.415 and 47.56.700 through 47.56.706, the provisions of RCW 47.56.010 through 47.56.257 shall govern
and be controlling in all matters and things necessary to carry
out the purposes of *RCW 47.20.415 and 47.56.700 through
47.56.706. Nothing in *RCW 47.20.415 and 47.56.700
through 47.56.706 is intended to amend, alter, modify, or
repeal any of the provisions of any statute relating to the powers and duties of the department except as such powers and
47.56.706
(2004 Ed.)
State Toll Bridges, Tunnels, and Ferries
duties are amplified or modified by the special provisions of
*RCW 47.20.415 and 47.56.700 through 47.56.706 for the
uses and purposes herein set forth, and the provisions of
*RCW 47.20.415 and 47.56.700 through 47.56.706 shall be
additional to such existing statutes and concurrent therewith.
[1983 c 3 § 132; 1963 c 197 § 7.]
*Reviser's note: RCW 47.20.415 was repealed by 1967 ex.s. c 145 § 8.
47.56.711
47.56.711 Spokane river bridges. The state highway
bridge across the Spokane river in the vicinity of Trent Avenue in Spokane shall be known and designated as the James
E. Keefe bridge.
After September 1, 1990, ownership of the Spokane river
toll bridge, known as the Maple Street bridge, shall revert to
the city of Spokane. [1990 c 42 § 401; 1979 c 131 § 1.]
Purpose—Headings—Severability—Effective dates—Application—Implementation—1990 c 42: See notes following RCW 82.36.025.
Severability—1979 c 131: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1979 c 131 § 11.]
47.56.7115
47.56.7115 Spokane river toll bridge—Operation
and maintenance responsibility and funding. The city of
Spokane shall be responsible for operating and maintaining
the Spokane river toll bridge and the surrounding area except:
(1) The department of transportation shall remove the
toll booths and restripe the approaches, as necessary, once the
tolls have been removed.
(2) The department of transportation shall replace the
bridge deck and upgrade the approaches. In order to accomplish this activity, the department of transportation shall pursue federal bridge replacement funds and the city of Spokane
shall contribute three hundred thousand dollars towards the
required matching funds. [1990 c 42 § 402.]
Purpose—Headings—Severability—Effective dates—Application—Implementation—1990 c 42: See notes following RCW 82.36.025.
47.56.7125
47.56.7125 Spokane river toll bridge—Transfer of
funds. The state treasurer shall transfer all remaining funds
in the Spokane river toll bridge revenue account to the motor
vehicle fund to be used for the following purposes:
(1) Repay existing loans from the motor vehicle fund to
the Spokane river toll bridge revenue account in the amount
of six hundred sixteen thousand two dollars and thirty-three
cents;
(2) Fund removal of toll booths and associated repairs on
the Spokane river toll bridge; and
(3) Fund preliminary engineering of the bridge deck
replacement on the Spokane river toll bridge.
Any remaining funds are reserved to provide matching
funds for federal bridge replacement funds to replace the
bridge deck in the 1991-93 biennium. [1990 c 42 § 404.]
Purpose—Headings—Severability—Effective dates—Application—Implementation—1990 c 42: See notes following RCW 82.36.025.
47.56.720
47.56.720 Puget Island-Westport ferry—Payments
for operation and maintenance to Wahkiakum county—
Toll-free operation and provision of rest room facilities,
when. (1) The legislature finds that the ferry operated by
Wahkiakum county between Puget Island and Westport on
(2004 Ed.)
47.56.725
the Columbia river provides service which is primarily local
in nature with secondary benefits to the state highway system
in providing a bypass for state route 4 and providing the only
crossing of the Columbia river between the Astoria-Megler
bridge and the Longview bridge.
(2) The department is hereby authorized to enter into a
continuing agreement with Wahkiakum county pursuant to
which the department shall pay to Wahkiakum county from
moneys appropriated for such purpose monthly amounts not
to exceed eighty percent of the operating and maintenance
deficit with a maximum not to exceed the amount appropriated for that biennium to be used in the operation and maintenance of the Puget Island ferry, commencing July 1, 1992.
(3) The annual deficit, if any, incurred in the operation
and maintenance of the ferry shall be determined by Wahkiakum county subject to the approval of the department. If
eighty percent of the deficit for the preceding fiscal year
exceeds the total amount paid to the county for that year, the
additional amount shall be paid to the county by the department upon the receipt of a properly executed voucher. The
total of all payments to the county in any biennium shall not
exceed the amount appropriated for that biennium. The fares
established by the county shall be comparable to those used
for similar runs on the state ferry system.
(4) Whenever, subsequent to June 9, 1977, state route 4
between Cathlamet and Longview is closed to traffic pursuant to chapter 47.48 RCW due to actual or potential slide conditions and there is no suitable, reasonably short alternate
state route provided, Wahkiakum county is authorized to
operate the Puget Island ferry on a toll-free basis during the
entire period of such closure. The state's share of the ferry
operations and maintenance deficit during such period shall
be one hundred percent.
(5) Whenever state route 4 between Cathlamet and
Longview is closed to traffic, as mentioned in subsection (4)
hereof, the state of Washington shall provide temporary rest
room facilities at the Washington ferry landing terminal.
[1992 c 82 § 1; 1987 c 368 § 1; 1984 c 7 § 285; 1977 c 11 §
1; 1973 2nd ex.s. c 26 § 1; 1971 ex.s. c 254 § 1.]
Effective date—1987 c 368: "This act is necessary for the immediate
preservation of the public peace, health, and safety, the support of the state
government and its existing public institutions, and shall take effect July 1,
1987." [1987 c 368 § 2.]
Severability—1984 c 7: See note following RCW 47.01.141.
Effective date—1973 2nd ex.s. c 26: "This 1973 amendatory act is
necessary for the immediate preservation of the public peace, health and
safety, the support of the state government and its existing public institutions, and shall take effect October 1, 1973." [1973 2nd ex.s. c 26 § 3.]
47.56.725 County ferries—Deficit reimbursements—
Capital improvement funds. (1) The department is hereby
authorized to enter into a continuing agreement with Pierce,
Skagit, and Whatcom counties pursuant to which the department shall, from time to time, direct the distribution to each
of the counties the amounts authorized in subsection (2) of
this section in accordance with RCW 46.68.090.
(2) The department is authorized to include in each
agreement a provision for the distribution of funds to each
county to reimburse the county for fifty percent of the deficit
incurred during each previous fiscal year in the operation and
maintenance of the ferry system owned and operated by the
county. The total amount to be reimbursed to Pierce, Skagit,
47.56.725
[Title 47 RCW—page 187]
47.56.730
Title 47 RCW: Public Highways and Transportation
and Whatcom counties collectively shall not exceed one million dollars in any biennium. Each county agreement shall
contain a requirement that the county shall maintain tolls on
its ferries at least equal to tolls in place on January 1, 1990.
(3) The annual fiscal year operating and maintenance
deficit, if any, shall be determined by Pierce, Skagit, and
Whatcom counties subject to review and approval of the
department. The annual fiscal year operating and maintenance deficit is defined as the total of operations and maintenance expenditures less the sum of ferry toll revenues and
that portion of fuel tax revenue distributions which are attributable to the county ferry as determined by the department.
Distribution of the amounts authorized by subsection (2) of
this section by the state treasurer shall be directed by the
department upon the receipt of properly executed vouchers
from each county.
(4) The county road administration board may evaluate
requests by Pierce, Skagit, Wahkiakum, and Whatcom counties for county ferry capital improvement funds. The board
shall evaluate the requests and, if approved by a majority of
the board, submit the requests to the legislature for funding
out of the amounts available under *RCW 46.68.090(1)(j).
Any county making a request under this subsection shall first
seek funding through the public works trust fund, or any
other available revenue source, where appropriate. [1999 c
269 § 12; 1991 c 310 § 1; 1984 c 7 § 286; 1977 c 51 § 2;
1975-'76 2nd ex.s. c 57 § 2; 1975 1st ex.s. c 21 § 1.]
*Reviser's note: RCW 46.68.090 was amended by 2003 c 361 § 403,
changing subsection (1)(j) to subsection (2)(h).
Effective date—1999 c 269: See note following RCW 36.78.070.
Severability—1984 c 7: See note following RCW 47.01.141.
Effective date—1977 c 51: "This 1977 amendatory act is necessary for
the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take
effect on July 1, 1977." [1977 c 51 § 4.]
Severability—1977 c 51: "If any provision of this 1977 amendatory
act, or its application to any person or circumstance is held invalid, the
remainder of the act, or the application of the provision to other persons or
circumstances is not affected." [1977 c 51 § 3.]
47.56.730
47.56.730 "No Smoking" areas on ferries—Establishment directed. The legislature finds that the public
health, safety, and welfare require that "No Smoking" areas
be established on all state ferries since there is a significant
number of our citizens who are nonsmokers. The department
is hereby authorized and directed to adopt rules pursuant to
the administrative procedure act, chapter 34.05 RCW, to
establish and clearly designate areas on all state operated ferries that are expressly reserved for use by nonsmokers. [1984
c 7 § 287; 1974 ex.s. c 10 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.56.740
47.56.740 Columbia river bridge at Horn Rapids—
Authorized—Approach routes. Subject to the provisions
of RCW 47.56.741, 47.56.742, and 47.56.743, the department of transportation is hereby authorized and directed to
make all necessary surveys and to design and construct a toll
bridge across the Columbia river. The approaches to the toll
bridge shall (1) extend from the bridge to state route number
240 on the west and may include the improvement of the
Horn Rapids Road; (2) extend from the bridge easterly to
[Title 47 RCW—page 188]
state route number 395 and shall include the improvement of
Alder Road; and (3) extend from a point on the easterly
approach road southerly to state route number 182 and shall
include the improvement of existing county roads. [1981 c
327 § 1; 1979 ex.s. c 212 § 1.]
Severability—1979 ex.s. c 212: "If any provision of this act or its
application to any person or circumstance is held invalid, the remainder of
the act or the application of the provision to other persons or circumstances
is not affected." [1979 ex.s. c 212 § 21.]
47.56.741
47.56.741 Columbia river bridge at Horn Rapids—
Agreements with local governments. If the transportation
commission concludes that construction of a toll bridge
across the Columbia river at North Richland in the vicinity of
the Horn Rapids Road, including approaches, is economically feasible, the department is authorized to enter into
agreements with Richland, Benton county, and Franklin
county in accordance with RCW 47.56.742. [1979 ex.s. c
212 § 2.]
Severability—1979 ex.s. c 212: See note following RCW 47.56.740.
47.56.742
47.56.742 Columbia river bridge at Horn Rapids—
Bonds—Agreements with local governments required.
The transportation commission shall not request the issuance
of any bonds for the construction of the toll bridge and its
approaches unless and until:
(1) Either Richland or Benton county separately or Richland and Benton county jointly agree with the department to
maintain to standards prescribed by the department the westerly approach from the bridge to state route number 240
including sections of Horn Rapids Road so long as any bonds
issued to pay for the construction of the toll bridge and its
approaches remain outstanding.
(2) Franklin county shall agree with the department to
maintain to standards prescribed by the department the easterly approach from the bridge to state route number 395 and
the approach from the easterly approach road southerly to
state route number 182 so long as any bonds issued to pay for
the construction of the toll bridge and its approaches remain
outstanding. [1981 c 327 § 2; 1979 ex.s. c 212 § 3.]
Severability—1979 ex.s. c 212: See note following RCW 47.56.740.
47.56.743
47.56.743 Columbia river bridge at Horn Rapids—
Bonds—Plans for funding obligations of local governments required. The transportation commission shall not
request the issuance of any bonds for the construction of the
toll bridge and its approaches until Benton and Franklin
counties and Richland have adopted specific and acceptable
plans to assure the funding of their respective obligations as
established by the agreements authorized in RCW 47.56.742.
[1979 ex.s. c 212 § 4.]
Severability—1979 ex.s. c 212: See note following RCW 47.56.740.
47.56.744
47.56.744 Columbia river bridge at Horn Rapids—
Agreements with United States—Acceptance of public or
private funds. In order to facilitate the financing of the toll
bridge the department, Benton and Franklin counties, and
Richland may consult, cooperate, and enter into agreements
with the government of the United States or any of its agencies and accept and expend money from any public or private
(2004 Ed.)
State Toll Bridges, Tunnels, and Ferries
source which is now or may be available to assist in the construction of the bridge. [1979 ex.s. c 212 § 5.]
Severability—1979 ex.s. c 212: See note following RCW 47.56.740.
47.56.745
47.56.745 Columbia river bridge at Horn Rapids—
General obligation bonds authorized—Additional bonds
authorized, restriction. In order to provide funds for the
construction of such bridge and approaches thereto, including
but not limited to all costs of survey, acquisition of rights of
way, design, engineering, and to pay the interest on the bonds
when due during construction and for a period not exceeding
six months after the bridge is open to traffic, there shall be
issued and sold general obligation bonds of the state of Washington in the principal amount of not to exceed eighty million
dollars or such lesser amount thereof, at such times as may be
determined to be necessary by the department of transportation. At the request of the transportation commission the state
finance committee may issue additional general obligation
bonds of the state of Washington ranking on a parity with the
bonds authorized hereinabove and subject to the provisions
of RCW 47.56.740 through 47.56.756 as now amended, to
pay the cost of further improving the approaches to the bridge
or adding additional bridge lanes or constructing a parallel
bridge: PROVIDED, That such additional bonds shall not be
issued without further express authorization of the legislature. [1981 c 327 § 3; 1979 ex.s. c 212 § 6.]
Severability—1979 ex.s. c 212: See note following RCW 47.56.740.
47.56.746
47.56.746 Columbia river bridge at Horn Rapids—
Bonds—Issuance, sale, retirement supervised by state
finance committee. The issuance, sale, and retirement of
said bonds shall be under the supervision and control of the
state finance committee which, upon request being made by
the department of transportation shall provide for the issuance, sale, and retirement of coupon or registered bonds to be
dated, issued, and sold from time to time in such amounts as
the department of transportation shall determine to be necessary to meet the purposes specified in RCW 47.56.745.
[1979 ex.s. c 212 § 7.]
47.56.750
principal and interest under such regulations as the state treasurer may prescribe. Such bonds shall be payable at such
places as the state finance committee may provide. All bonds
issued hereunder, unless registered, shall be fully negotiable
instruments. The bonds shall be legal investments for all state
funds or for funds under state control and all funds of municipal corporations.
At such time as a determination has been made to issue
the general obligation bonds or a portion thereof as authorized in RCW 47.56.745, the state finance committee may,
pending the issuance thereof, issue in the name of the state
temporary notes in anticipation of the issuance of the bonds,
which notes shall be designated as "bond anticipation notes."
If, prior to the issuance of such bonds, it becomes necessary
to redeem outstanding notes, additional bond anticipation
notes may be issued to redeem such outstanding notes and to
pay interest thereon. Such portion of the proceeds of the sale
of the bonds as may be required for the payment of principal
of and redemption premium, if any, and interest on the notes
shall be applied thereto when the bonds are issued. [1979
ex.s. c 212 § 8.]
Severability—1979 ex.s. c 212: See note following RCW 47.56.740.
47.56.748
47.56.748 Columbia river bridge at Horn Rapids—
Bonds—Bond proceeds—Deposit and use. Except for that
portion of the proceeds required to pay bond anticipation
notes under RCW 47.56.747, and except as provided in RCW
47.56.750, the money arising from the sale of said bonds
shall be deposited in the state treasury to the credit of the
Columbia river toll bridge account hereby created in the
motor vehicle fund, and such money shall be available only
for the purposes enumerated in RCW 47.56.745, for payment
of the expense incurred in the issuance and sale of any such
bonds and to repay the motor vehicle fund for any sums
advanced to pay the cost of surveys, location, design, right of
way, and all other things preliminary to the construction of
the bridge and its approaches. [1981 c 327 § 4; 1979 ex.s. c
212 § 9.]
Severability—1979 ex.s. c 212: See note following RCW 47.56.740.
Severability—1979 ex.s. c 212: See note following RCW 47.56.740.
47.56.749
47.56.747
47.56.747 Columbia river bridge at Horn Rapids—
Bonds—Term—Terms and conditions—Signatures—
Registration—Where payable—Negotiable instruments—Legal investment for state funds—Bond anticipation notes. Each of such bonds shall be made payable at any
time not exceeding thirty years from the date of issuance. The
state finance committee is authorized to prescribe the form,
terms, conditions, and covenants of the bonds and/or bond
anticipation notes provided for in this section, the time or
times of sale of all or any portion of them, and the conditions
and manner of their sale and issuance. The bonds shall be
signed by the governor and the state treasurer under the seal
of the state, one of which signatures shall be made manually
and the other signature may be in printed facsimile, and any
coupons attached to such bonds shall be signed by the same
officers whose signatures thereon may be in printed facsimile. Any bonds may be registered in the name of the holder on
presentation to the fiscal agency of the state of Washington in
Seattle or New York City as to principal alone, or as to both
(2004 Ed.)
47.56.749 Columbia river bridge at Horn Rapids—
Bonds—Statement describing nature of obligation—
Sources of payment. Bonds and bond anticipation notes
issued under the provisions of RCW 47.56.740 through
47.56.756 shall distinctly state that they are a general obligation of the state of Washington, shall pledge the full faith and
credit of the state to the payment of the principal thereof and
the interest thereon, and shall contain an unconditional promise to pay such principal and interest as the same shall
become due. The principal of and interest on such bonds shall
be first payable in the manner provided in chapter 212, Laws
of 1979 ex. sess. from the proceeds of state excise taxes on
motor vehicles and special fuels imposed by chapters 82.36
and 82.38 RCW and from the tolls and revenues derived from
the operation of such toll bridge. [1995 c 274 § 15; 1979 ex.s.
c 212 § 10.]
Severability—1979 ex.s. c 212: See note following RCW 47.56.740.
47.56.750
47.56.750 Columbia river bridge at Horn Rapids—
Bonds—Account created in highway bond retirement
[Title 47 RCW—page 189]
47.56.751
Title 47 RCW: Public Highways and Transportation
fund—Deposit of revenue—Pledge of excise taxes—
Repayment procedure—Legislative covenant. There is
hereby created in the highway bond retirement fund in the
state treasury a special account to be known as the Columbia
river toll bridge account into which shall be deposited any
capitalized interest from the proceeds of the bonds, and at
least monthly all of the tolls and other revenues received from
the operation of the toll bridge and from any interest which
may be earned from the deposit or investment of these revenues after the payment of costs of operation, maintenance,
management, and necessary repairs of the facility. The principal of and interest on the bonds shall be paid first from
money deposited in the Columbia river toll bridge account in
the highway bond retirement fund, and then, to the extent that
money deposited in that account is insufficient to make any
such payment when due, from the state excise taxes on motor
vehicle and special fuels deposited in the highway bond
retirement fund. There is hereby pledged the proceeds of state
excise taxes on motor vehicle and special fuels imposed
under chapters 82.36 and 82.38 RCW to pay the bonds and
interest thereon, and the legislature hereby agrees to continue
to impose the same excise taxes on motor vehicle and special
fuels in amounts sufficient to pay, when due, the principal
and interest on the bonds if the money deposited in the
Columbia river toll bridge account of the highway bond
retirement fund is insufficient to make such payments. Not
less than fifteen days prior to the date any interest or principal
and interest payments are due, the state finance committee
shall certify to the state treasurer such amount of additional
moneys as may be required for debt service, and the treasurer
shall thereupon transfer from the motor vehicle fund such
amount from the proceeds of such excise taxes into the highway bond retirement fund. Any proceeds of such excise taxes
required for these purposes shall first be taken from that portion of the motor vehicle fund which results from the imposition of the excise taxes on motor vehicle and special fuels and
which is distributed to the state. If the proceeds from the
excise taxes distributed to the state are ever insufficient to
meet the required payments on principal or interest on the
bonds when due, the amount required to make the payments
on the principal or interest shall next be taken from that portion of the motor vehicle fund which results from the imposition of excise taxes on motor vehicle and special fuels and
which is distributed to the state, counties, cities, and towns
pursuant to RCW 46.68.090. Any payments of the principal
or interest taken from the motor vehicle or special fuel tax
revenues which are distributable to the counties, cities, and
towns shall be repaid from the first moneys distributed to the
state not required for redemption of the bonds or interest
thereon. The legislature covenants and pledges that it shall at
all times provide sufficient revenues from the imposition of
such excise taxes to pay the principal and interest due on the
bonds. [1999 c 269 § 13; 1995 c 274 § 16; 1979 ex.s. c 212 §
11.]
Effective date—1999 c 269: See note following RCW 36.78.070.
Severability—1979 ex.s. c 212: See note following RCW 47.56.740.
47.56.751
47.56.751 Columbia river bridge at Horn Rapids—
Operation by department of transportation—Amount
and duration of tolls—Use of motor vehicle fund mon[Title 47 RCW—page 190]
eys—Priority of payments—Trust fund—Covenants by
state finance committee. (1) The department of transportation is authorized to operate and assume full control of the
bridge and shall fix and maintain the tolls and charges in the
manner provided by RCW 47.56.240 so that when collected
they will produce revenues sufficient to pay all expenses of
operating, maintaining, managing, and repairing the toll
bridge including all insurance costs and the amounts required
to pay the principal and interest on the bonds when due and to
satisfy the other obligations set forth in RCW 47.56.740
through 47.56.756 and 47.56.220 as now or hereafter
amended: PROVIDED, That revision of tolls and charges
shall be determined by the department after considering the
effect upon the traffic using the bridge and the projected revenues which will result from the increase of tolls and charges
for the use of the bridge.
(2) To the extent that net revenues and income are insufficient to meet the required payments of principal and interest
on bonds, the department shall use moneys pledged from the
motor vehicle fund as provided in RCW 47.56.750.
(3) The payment of the principal of and the interest on
the bonds shall constitute a first direct and exclusive charge
and lien on all such tolls and other revenues and interest
thereon received from the use and operation of the Columbia
river toll bridge, after the payment of all expenses of operating, maintaining, managing, and repairing the toll bridge, and
such tolls and revenues together with interest earned thereon,
and all other money deposited in the Columbia river toll
bridge account in the highway bond redemption fund, shall
constitute a trust fund for the security and payment of such
bonds, or bonds refunding such bonds, and shall not be used
or pledged for any other purpose as long as such bonds or any
of them are outstanding and unpaid.
(4) The state finance committee may on behalf of the
state make such covenants in connection with the bond proceedings or otherwise to assure the maintenance of the tolls
and charges on the Columbia river toll bridge, the proper
application thereof, the proper operation, maintenance, management, and repair of the bridge to provide for and secure
the timely payment of the bonds. Such covenants shall be
binding on the department of transportation and transportation commission. [1979 ex.s. c 212 § 12.]
Severability—1979 ex.s. c 212: See note following RCW 47.56.740.
47.56.752
47.56.752 Columbia river bridge at Horn Rapids—
Toll revenue trust fund—Transfer of surplus moneys. All
tolls or other revenues received from the operation of the
Columbia toll bridge constructed with the proceeds of bonds
issued and sold hereunder shall be paid over by the department of transportation to the state treasurer who shall deposit
the same forthwith as demand deposits in such depositary or
depositaries as may be authorized by law to receive deposits
of state funds to the credit of a special trust fund to be designated as the toll revenue fund of the Columbia river toll
bridge, which fund shall be a trust fund and shall at all times
be kept segregated and set apart from all other funds.
After provision has been made for payment of costs of
operation, maintenance, management and necessary repairs
of the facility, the surplus moneys available in the toll revenue fund, or so much thereof as may be required, shall be
(2004 Ed.)
State Toll Bridges, Tunnels, and Ferries
transferred monthly to the Columbia river toll bridge account
of the highway bond retirement fund to pay the principal of
and interest on the bonds authorized by RCW 47.56.745.
[1979 ex.s. c 212 § 13.]
Severability—1979 ex.s. c 212: See note following RCW 47.56.740.
47.56.753
47.56.753 Columbia river bridge at Horn Rapids—
Repayment of motor vehicle fund money—Continuation
of tolls. Any moneys from the motor vehicle fund used by
the department for payment of expenses of location, maintenance, repair, and operation of the bridge and approaches,
and principal or interest on any bonds issued pursuant to
RCW 47.56.745, or any subsequent refunding bond issue,
shall be repaid to the motor vehicle fund from revenues of the
project after all such bonds have been retired. Tolls shall be
continued for any additional length of time necessary for this
purpose. [1979 ex.s. c 212 § 14.]
Appropriation, repayment to motor vehicle fund—1981 c 327:
"There is appropriated from the motor vehicle fund to the department of
transportation for the biennium ending June 30, 1983, the sum of one million
dollars, or so much thereof as may be necessary for the purpose of surveys,
location, design, right of way, and all other things preliminary to the construction of the toll bridge described in RCW 47.56.740 as now amended
together with its approaches. All funds expended from this appropriation
shall be considered a loan and shall be repaid to the motor vehicle fund from
the proceeds from the sale of bonds for this project." [1981 c 327 § 5.]
Appropriation, repayment to motor vehicle fund—1979 ex.s. c 212:
"There is appropriated from the motor vehicle fund to the department of
transportation for the biennium ending June 30, 1981, the sum of one million
dollars, or so much thereof as may be necessary for the purpose of surveys,
location, design, right of way, and all other things preliminary to the construction of the bridge and its approaches. All funds expended from this
appropriation shall be considered a loan and shall be repaid to the motor
vehicle fund upon the sale of bonds for this project." [1979 ex.s. c 212 § 20.]
Severability—1979 ex.s. c 212: See note following RCW 47.56.740.
47.56.754
47.56.754 Columbia river bridge at Horn Rapids—
Ferries, urban arterials, Spokane river toll bridges,
bonds—Lien against fuel tax revenues. Except as otherwise provided by statute, the bonds issued under authority of
RCW 47.56.745, the bonds authorized by RCW 47.60.560
through 47.60.640, the bonds authorized by chapter 5, Laws
of 1979, and chapter 131, Laws of 1979, and any additional
general obligation bonds of the state of Washington which
may be authorized by the forty-sixth legislature or thereafter
and which pledge motor vehicle and special fuel excise taxes
for the payment of principal thereof and interest thereon shall
be an equal charge and lien against the revenues from such
motor vehicle and special fuel excise taxes. [1979 ex.s. c 212
§ 15.]
Severability—1979 ex.s. c 212: See note following RCW 47.56.740.
47.56.755
47.56.755 Columbia river bridge at Horn Rapids—
When toll free—Conveyance to city or counties. Upon the
redemption of all bonds issued pursuant to RCW 47.56.745
and the repayment of all other obligations to the motor vehicle fund as authorized by RCW 47.56.753, the department of
transportation shall remove the tolls and transfer the bridge
and its approaches to the city and/or counties having jurisdiction thereof, and the bridge and its approaches shall become a
county road or in part a county road and in part a city street.
The bridge, its approaches, and right of way shall be con(2004 Ed.)
47.56.761
veyed to the city or counties by deed executed by the secretary of transportation. [1979 ex.s. c 212 § 16.]
Severability—1979 ex.s. c 212: See note following RCW 47.56.740.
47.56.756
47.56.756 Additional bridge at Columbia Point
authorized. Notwithstanding the provisions of RCW
47.56.220 as now or hereafter amended, the department may
design and construct an additional bridge across the Columbia river in the vicinity of Columbia Point. [1979 ex.s. c 212
§ 17.]
Severability—1979 ex.s. c 212: See note following RCW 47.56.740.
47.56.760
47.56.760 First Avenue South bridge in Seattle—
Study by commission—Bonds, tolls—Additional funding.
(1) The transportation commission is authorized to conduct a
study, to be paid from category C funds, to determine the economic and operational feasibility and consistency with federal laws of constructing, entirely or in part with toll-financed
revenue bonds, a new parallel bridge and approaches on First
Avenue South in Seattle, together with reconstruction of
approaches to the existing bridge and connections to existing
city street systems as necessary.
(2) If the commission concludes that construction,
entirely or in part with toll-financed revenue bonds, of the
facilities described in subsection (1) of this section is economically and operationally feasible and consistent with federal law, the commission may:
(a) Issue and sell revenue bonds under the provisions of
this chapter for the purpose of constructing the facilities
described in subsection (1) of this section; and
(b) Impose and collect tolls on the facilities for the purpose of funding the revenue bonds issued under this section.
(3) The commission shall seek additional funding for the
bridge from local sources, including the city, county, and port
district. Any funding obtained from local sources shall be
matched by an equal amount of category C state funds under
chapter 47.05 RCW. [1987 c 510 § 1.]
47.56.761
47.56.761 First Avenue South bridge in Seattle—
Study by city—Tolls—Revenues. The city of Seattle is
authorized to conduct a study, to be paid for wholly from city
funds, to determine the operational feasibility and consistency with federal law of charging tolls on the First Avenue
South Bridge on State Route 99. The study is to be conducted
in cooperation with the department of transportation. If the
city of Seattle and the department of transportation determine
that the charging of tolls is feasible and consistent with federal law, then the city is authorized to charge reasonable tolls
and to construct, operate and maintain toll collection facilities
on the bridge.
The toll collection revenues less the costs of collection
shall be placed in a separate account solely for the purpose of
financial participation with the state and other local governmental entities in the construction, when commenced by the
department of transportation, of a new parallel bridge and
approaches on First Avenue South in Seattle, together with
reconstruction of approaches to the existing bridge and connections to existing city street systems as necessary. Interest
generated by funds within the account shall be credited to that
account in their entirety. [1987 c 510 § 2.]
[Title 47 RCW—page 191]
47.56.770
Title 47 RCW: Public Highways and Transportation
47.56.770
47.56.770 Refunding bonds—Authorized. The state
finance committee is authorized to issue refunding bonds and
use other available money to refund, defease, and redeem all
of those toll bridge authority, ferry, and Hood Canal bridge
refunding revenue bonds under RCW 47.56.771 through
47.56.774. [1993 c 4 § 2.]
Legislative declaration—1993 c 4: "It is declared that it is in the best
interest of the state to modify the debt service and reserve requirements,
sources of payment, covenants, and other terms of the outstanding toll bridge
authority, ferry, and Hood Canal bridge refunding revenue bonds." [1993 c
4 § 1.]
Effective date—1993 c 4: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[March 12, 1993]." [1993 c 4 § 11.]
47.56.771
47.56.771 Refunding bonds—General obligation—
Signatures, negotiability—Payment of principal and
interest—Pledge of excise taxes. (1) The refunding bonds
authorized under RCW 47.56.770 shall be general obligation
bonds of the state of Washington and shall be issued in a total
principal amount not to exceed fifteen million dollars. The
exact amount of refunding bonds to be issued shall be determined by the state finance committee after calculating the
amount of money deposited with the trustee for the bonds to
be refunded which can be used to redeem or defease outstanding toll bridge authority, ferry, and Hood Canal bridge
revenue bonds after the setting aside of sufficient money
from that fund to pay the first interest installment on the
refunding bonds. The refunding bonds shall be serial in form
maturing at such time, in such amounts, having such denomination or denominations, redemption privileges, and having
such terms and conditions as determined by the state finance
committee. The last maturity date of the refunding bonds
shall not be later than January 1, 2002.
(2) The refunding bonds shall be signed by the governor
and the state treasurer under the seal of the state, which signatures shall be made manually or in printed facsimile. The
bonds shall be registered in the name of the owner in accordance with chapter 39.46 RCW. The refunding bonds shall
distinctly state that they are a general obligation of the state
of Washington, shall pledge the full faith and credit of the
state, and shall contain an unconditional promise to pay the
principal thereof and the interest thereon when due. The
refunding bonds shall be fully negotiable instruments.
(3) The principal and interest on the refunding bonds
shall be first payable in the manner provided in this section
from the proceeds of state excise taxes on motor vehicle and
special fuels imposed by chapters 82.36 and 82.38 RCW.
(4) The principal of and interest on the refunding bonds
shall be paid first from the state excise taxes on motor vehicle
and special fuels deposited in the ferry bond retirement fund.
There is hereby pledged the proceeds of state excise taxes on
motor vehicle and special fuels imposed under chapters 82.36
and 82.38 RCW to pay the refunding bonds and interest
thereon, and the legislature hereby agrees to continue to
impose the same excise taxes on motor vehicle and special
fuels in amounts sufficient to pay, when due, the principal
and interest on the refunding bonds. Not less than fifteen days
prior to the date any interest or principal and interest payments are due, the state finance committee shall certify to the
state treasurer such amount of additional money as may be
[Title 47 RCW—page 192]
required for debt service, and the treasurer shall thereupon
transfer from the motor vehicle fund such amount from the
proceeds of such excise taxes into the ferry bond retirement
fund. Any proceeds of such excise taxes required for these
purposes shall first be taken from that portion of the motor
vehicle fund which results from the imposition of the excise
taxes on motor vehicle and special fuels and which is distributed to the Puget Sound capital construction account. If the
proceeds from excise taxes distributed to the state are ever
insufficient to meet the required payments on principal or
interest on the refunding bonds when due, the amount
required to make the payments on the principal or interest
shall next be taken from that portion of the motor vehicle
fund which results from the imposition of excise taxes on
motor vehicle and special fuels and which is distributed to the
state, counties, cities, and towns pursuant to RCW 46.68.090.
Any payments of the principal or interest taken from the
motor vehicle or special fuel tax revenues which are distributable to the counties, cities, and towns shall be repaid from
the first money distributed to the state not required for
redemption of the refunding bonds or interest thereon. The
legislature covenants that it shall at all times provide sufficient revenues from the imposition of such excise taxes to
pay the principal and interest due on the refunding bonds.
[1999 c 269 § 14; 1995 c 274 § 17; 1993 c 4 § 3.]
Effective date—1999 c 269: See note following RCW 36.78.070.
Legislative declaration—Effective date—1993 c 4: See notes following RCW 47.56.770.
47.56.772
47.56.772 Refunding bonds—Liquidation of existing
bond funds. Upon the issuance of refunding bonds as authorized by RCW 47.56.770, the department of transportation
may liquidate the existing bond fund and other funds and
accounts established in the proceedings which authorized the
issuance of the outstanding toll bridge authority, ferry, and
Hood Canal bridge refunding revenue bonds and apply the
money contained in those funds and accounts to the defeasance and redemption of outstanding toll bridge authority,
ferry, and Hood Canal refunding revenue bonds, except that
prior to such bond redemption, money sufficient to pay the
first interest installment on the refunding bonds shall be
deposited in the ferry bond retirement fund. Money remaining in such funds not used for such bond defeasance and
redemption or first interest installment on the refunding
bonds shall be transferred to and deposited in the Puget
Sound ferry operations account created under RCW
47.60.530. [1999 c 94 § 25; 1993 c 4 § 4.]
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
Legislative declaration—Effective date—1993 c 4: See notes following RCW 47.56.770.
47.56.773
47.56.773 Refunding bonds—Repayment to Puget
Sound capital construction account. Any money appropriated from the Puget Sound capital construction account under
section 10, chapter 4, Laws of 1993 and expended to pay
expenses of issuing the refunding bonds authorized by RCW
47.56.770, and any money in the Puget Sound capital construction account subsequently used to pay principal and
interest on the refunding bonds authorized by RCW
47.56.770 shall be repaid to the Puget Sound capital con(2004 Ed.)
Existing and Additional Bridges
struction account for use by the department of transportation.
[1993 c 4 § 5.]
Legislative declaration—Effective date—1993 c 4: See notes following RCW 47.56.770.
47.56.774 Various bond issues—Charge against fuel
tax revenues. Except as otherwise provided by statute, the
refunding bonds issued under authority of RCW 47.56.770,
the bonds authorized by RCW 47.60.560 through 47.60.640,
the bonds authorized by RCW 47.26.420 through 47.26.427,
and any general obligation bonds of the state of Washington
which have been or may be authorized by the legislature after
the enactment of those sections and which pledge motor vehicle and special fuel excise taxes for the payment of principal
thereof and interest thereon shall be an equal charge and lien
against the revenues from such motor vehicle and special fuel
excise taxes. [1993 c 4 § 6.]
47.56.774
Legislative declaration—Effective date—1993 c 4: See notes following RCW 47.56.770.
47.58.040
47.58.020
47.58.020 Examinations and surveys—Preliminary
expenses—Financing. For the purpose of obtaining information as to the necessity of the reconstruction or improvement of any such bridge and the expediency of constructing
any such additional bridge it is the duty of the department to
make any examination, investigation, survey, or reconnaissance pertaining thereto. The cost of any such examination,
investigation, survey, or reconnaissance, and all preliminary
expenses in the issuance of any revenue bonds, making surveys and appraisals and drafting, printing, issuance, and sale
of bonds under this chapter, shall be advanced by any interested municipality, agency, or department of the state of
Washington. All such advancements shall be reimbursed out
of any proceeds derived from the sale of bonds or out of tolls
and revenues to be derived by the department through its
operations hereunder for account of the project, as may be
agreed upon between the department and the municipality,
agency, or department. [1984 c 7 § 289; 1961 c 13 §
47.58.020. Prior: 1955 c 208 § 2.]
Severability—1984 c 7: See note following RCW 47.01.141.
Chapter 47.58 RCW
EXISTING AND ADDITIONAL BRIDGES
Chapter 47.58
Sections
47.58.010
47.58.020
47.58.030
47.58.040
47.58.050
47.58.060
47.58.070
47.58.080
47.58.090
47.58.500
47.58.900
Improvement of existing bridge and construction of new
bridge as single project—Agreement—Tolls.
Examinations and surveys—Preliminary expenses—Financing.
Construction, operation of bridges—Collection of tolls—
Schedule of charges.
Revenue bonds—Form—Sale—Interim bonds—Deposit of
proceeds.
Revenue bonds—Expenses includable—Conditions—Remedies of bondholders.
Bond resolution—Disposition of income and revenues.
Bonds legal investment for state moneys.
Eminent domain.
Study of projects—Specific authorization of construction and
finance.
Manette bridge—Port Washington Narrows project.
Chapter provides additional method.
Bridges over navigable waters: RCW 79.91.090 through 79.91.120.
47.58.010
47.58.010 Improvement of existing bridge and construction of new bridge as single project—Agreement—
Tolls. Whenever the legislature specifically authorizes, as a
single project, the construction of an additional toll bridge,
including approaches, and the reconstruction of an existing
adjacent bridge, including approaches, and the imposition of
tolls on both bridges, the department is authorized to enter
into appropriate agreements whereunder the existing bridge
or its approaches will be reconstructed and improved and an
additional bridge, including approaches and connecting highways will be constructed as a part of the same project to be
located adjacent to or within two miles of the existing bridge
and will be financed through the issuance of revenue bonds of
the same series. The department has the right to impose tolls
for traffic over the existing bridge as well as the additional
bridge for the purpose of paying the cost of operation and
maintenance of the bridge or bridges and the interest on and
creating a sinking fund for retirement of revenue bonds
issued for account of such project, all in the manner permitted
and provided by this chapter. [1984 c 7 § 288; 1961 c 13 §
47.58.010. Prior: 1955 c 208 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
(2004 Ed.)
47.58.030
47.58.030 Construction, operation of bridges—Collection of tolls—Schedule of charges. The secretary shall
have full charge of the construction of all such improvements
and reconstruction work and the construction of any additional bridge, including approaches and connecting highways, that may be authorized under this chapter and the operation of such bridge or bridges, as well as the collection of
tolls and other charges for services and facilities thereby
afforded. The schedule of charges for the services and facilities shall be fixed and revised from time to time by the commission so that the tolls and revenues collected will yield
annual revenue and income sufficient, after payment or
allowance for all operating, maintenance, and repair
expenses, to pay the interest on all revenue bonds outstanding
under the provisions of this chapter for account of the project
and to create a sinking fund for the retirement of the revenue
bonds at or prior to maturity. The charges shall be continued
until all such bonds and interest thereon and unpaid advancements, if any, have been paid. [1984 c 7 § 290; 1961 c 13 §
47.58.030. Prior: 1955 c 208 § 3.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.58.040
47.58.040 Revenue bonds—Form—Sale—Interim
bonds—Deposit of proceeds. For the purpose of paying the
cost of all or any part of the improvement and reconstruction
work and the construction of any additional bridge,
approaches thereto, and connecting highways, the department is hereby authorized by resolution to issue its revenue
bonds which shall constitute obligations only of the department and shall be payable from any funds available except
revenue from the general fund, including but not limited to
the revenues and income from the operation of the bridge or
bridges constituting the project as may be provided in and by
such resolution. Each such revenue bond shall contain a
recital that payment or redemption of the bond and payment
of the interest thereon is secured by a direct charge and lien
upon the tolls and revenues pledged for that purpose and that
such bond does not constitute an indebtedness of the state of
Washington. Such revenue bonds may bear such date or
[Title 47 RCW—page 193]
47.58.050
Title 47 RCW: Public Highways and Transportation
dates, may mature at such time or times as the department
shall determine, may bear interest at such rate or rates, may
be in such denomination or denominations, may be in such
form, either coupon or registered, may carry such registration
and conversion privileges, may be made subject to such terms
of redemption with or without premium, and may contain
such other terms and covenants not inconsistent with this
chapter as may be provided in such resolution. Notwithstanding the form or tenor of the bond, and in the absence of an
express recital on its face that the bond is nonnegotiable, each
such revenue bond shall at all times be and shall be treated as
a negotiable instrument for all purposes. All such bonds shall
be signed by the state treasurer and countersigned by the governor, and any interest coupons appertaining thereto shall
bear the signature of the state treasurer. The countersignature
of the governor on the bonds and the signature of the state
treasurer on the coupons may be their printed or lithographed
facsimile signatures. Pending the issuance of definitive
bonds, temporary or interim bonds, certificates, or receipts of
any denomination and with or without coupons attached may
be issued as may be provided by the resolution. All bonds
issued under or by authority of this chapter shall be sold to the
highest and best bidder at such price or prices, at such rate or
rates of interest, and after such advertising for bids as the
department may deem proper, but it may reject any and all
bids so submitted and thereafter sell the bonds so advertised
under such terms and conditions as it deems advantageous.
The purchase price of all bonds issued hereunder shall be
paid to the state treasurer consistent with the provisions of the
resolution pursuant to which the bonds have been issued or to
the trustee designated in the bond resolution and held as a
separate trust fund to be disbursed on the orders of the department. [1984 c 7 § 291; 1973 c 106 § 27; 1970 ex.s. c 56 § 64;
1969 ex.s. c 232 § 78; 1961 c 102 § 1; 1961 c 13 § 47.58.040.
Prior: 1955 c 208 § 4.]
Severability—1984 c 7: See note following RCW 47.01.141.
Purpose—1970 ex.s. c 56: See note following RCW 39.52.020.
Validation—Saving—Severability—1969 ex.s. c 232: See notes following RCW 39.52.020.
47.58.050
47.58.050 Revenue bonds—Expenses includable—
Conditions—Remedies of bondholders. In determining the
amount of bonds required to be issued, there may be included
any expenses incurred or approved by the department in connection with and incidental to the issuance and sale of bonds
and for the preparation of surveys and estimates and making
inspections and examinations, required reserves, if any, interest during the estimated construction period and for six
months thereafter, and a reasonable amount for initial operating expenses and prepaid insurance. The department is
hereby empowered to include in any resolution authorizing
the issuance of the bonds such covenants, stipulations, and
conditions as it deems necessary with respect to the continued use and application of the revenues and income from the
bridge or bridges. The holder of any bond or the trustee for
any bonds designated by resolution may by mandamus or
other appropriate proceeding compel performance of any
duties imposed upon any state department, official, or
employee, including any duties imposed upon or undertaken
by the department or its officers, agents, and employees in
connection with any improvement or reconstruction work on
[Title 47 RCW—page 194]
any existing bridge, the construction of any additional bridge,
including approaches and connecting highways provided to
be so constructed, the maintenance and operation of the
bridge or bridges and in connection with the collection,
deposit, investment, application, and disbursement of the
proceeds of the bonds and the revenues and income derived
from the operation of the bridge or bridges. [1984 c 7 § 292;
1961 c 13 § 47.58.050. Prior: 1955 c 208 § 5.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.58.060
47.58.060 Bond resolution—Disposition of income
and revenues. Each resolution providing for the issuance of
revenue bonds shall provide for setting aside the necessary
amounts for the reasonable and proper operation, maintenance, and repair expenses, and shall fix and determine the
amounts to be set apart and applied to the payment of the
interest on and retirement of the revenue bonds. All income
and revenues as collected shall be paid to the state treasurer
for the account of the department as a separate trust fund to be
segregated and set apart for the payment of the revenue
bonds, or may be remitted to and held by a designated trustee
in such manner and with such collateral as may be provided
in the resolution authorizing the issuance of the bonds. [1984
c 7 § 293; 1961 c 13 § 47.58.060. Prior: 1955 c 208 § 6.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.58.070
47.58.070 Bonds legal investment for state moneys.
Notwithstanding any other provision of the law, bonds issued
under this chapter shall be legal investments by the state
investment board of any state moneys in its hands, except
permanent school funds. [1981 c 3 § 39; 1961 c 13 §
47.58.070. Prior: 1955 c 208 § 7.]
Effective dates—Severability—1981 c 3: See notes following RCW
43.33A.010.
47.58.080
47.58.080 Eminent domain. The department is hereby
authorized and empowered to acquire in the name of the state
by the exercise of the power of eminent domain any lands,
property, rights, rights of way, franchises, easements, and
other property of any person, firm, corporation, political subdivision, or other owner, deemed necessary or convenient for
the construction, reconstruction, improvement, and operation
of any project initiated and carried on by the department
under this chapter. The proceedings shall be in accordance
with and subject to the provisions of any and all laws applicable to the exercise of the power of eminent domain by the
state. [1984 c 7 § 294; 1961 c 13 § 47.58.080. Prior: 1955 c
208 § 8.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.58.090
47.58.090 Study of projects—Specific authorization
of construction and finance. Under the provisions of this
chapter, projects other than those specifically authorized
herein involving existing bridges may be studied and analyzed by the department, and recommendations therefor may
be submitted to the legislature, but such other projects shall
not be financed or constructed by the department under the
provisions of this chapter until further specific authorization
therefor has been provided by the legislature. [1984 c 7 §
295; 1961 c 13 § 47.58.090. Prior: 1955 c 208 § 11.]
(2004 Ed.)
Puget Sound Ferry and Toll Bridge System
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.100
47.60.110
47.60.113
47.58.500
47.58.500 Manette bridge—Port Washington Narrows project. (1) The authority is especially authorized
under the provisions of this chapter to reconstruct and
improve the existing approaches and construct new
approaches to the Manette bridge on secondary state highway
21-B in the city of Bremerton, and to construct an additional
bridge, including approaches, over Port Washington Narrows
in the vicinity of the said Manette bridge, at such exact location as may be selected by the director of highways, the state
highway commission and the authority. Such project shall be
known and designated as the Port Washington Narrows
project and such new bridge and approaches when constructed shall be and become an integral part of the state highway system to be connected with and be a part of secondary
state highway 21-B.
(2) The authority shall have the right to impose tolls for
pedestrian and vehicular traffic over the existing Manette
bridge, as well as such new bridge when constructed, for the
purpose of paying the costs of reconstructing and improving
approaches and constructing new approaches to the existing
Manette bridge, constructing the new bridge in the vicinity
thereof, to pay interest on and create a sinking fund for the
retirement of revenue bonds issued for account of such
project, and to pay any and all costs and expenses incurred by
the authority in connection with and incidental to the issuance and sale of bonds, and for the preparation of surveys and
estimates and to establish the required interest reserves for
and during the estimated construction period and for six
months thereafter. [1961 c 13 § 47.58.500. Prior: 1955 c 208
§ 10.]
Reviser's note: Powers, duties, and functions of toll bridge authority,
highway commission, and director of highways transferred to department of
transportation; see RCW 47.01.031. Terms "authority" and "state highway
commission" mean department of transportation; term "director of highways" means secretary of transportation; see RCW 47.04.015.
47.58.900
47.58.900 Chapter provides additional method. This
chapter shall be deemed to provide an additional and alternative method for the doing of the things authorized thereby,
and shall be regarded as supplemental and additional to powers conferred by other laws, and shall not be regarded as in
derogation of any powers existing on June 8, 1955. [1961 c
13 § 47.58.900. Prior: 1955 c 208 § 9.]
47.60.114
47.60.115
47.60.120
47.60.120
47.60.122
47.60.124
47.60.126
47.60.130
47.60.135
47.60.140
47.60.145
47.60.150
47.60.170
47.60.200
47.60.210
47.60.220
47.60.230
47.60.240
47.60.250
47.60.260
47.60.270
47.60.275
47.60.277
47.60.280
47.60.282
47.60.283
47.60.290
47.60.300
47.60.310
47.60.326
47.60.330
47.60.400
47.60.420
47.60.430
47.60.440
47.60.445
47.60.450
47.60.500
47.60.502
Chapter 47.60
Chapter 47.60 RCW
PUGET SOUND FERRY AND TOLL
BRIDGE SYSTEM
Sections
47.60.010
47.60.013
47.60.015
47.60.017
47.60.020
47.60.030
47.60.040
47.60.050
47.60.060
47.60.080
47.60.090
(2004 Ed.)
47.60.503
47.60.505
47.60.530
47.60.550
47.60.560
Ferry system, toll bridges, and facilities authorized—Power to
contract, sell and lease back.
Emergency powers of governor to insure continued operation
of ferry and toll bridge system—Cost reimbursement.
"Washington State Ferries"—Name authorized.
State ferry system a public mass transportation system.
Eminent domain—Condemnation proceedings.
Existing contracts—Prior negotiations and bids validated.
Survey by department.
Improvement of facilities—Financing.
Revenue bonds authorized—Issuance—Conditions—Negotiability—Interim bonds.
Determining amount of bonds to be issued.
Sale of bonds—Deposit, disbursement of proceeds.
47.60.570
47.60.580
47.60.590
47.60.600
47.60.610
47.60.620
47.60.630
47.60.640
47.60.645
47.60.649
Chapter 47.60
Bonds are legal investment for state moneys.
Bondholders may compel performance.
Refunding bonds—Authorization—Amount—Interest—Conditions.
Refunding bonds—Payable from revenues.
Refunding bonds—Disposition—Laws applicable.
Other crossings—Infringement of existing franchises—Waivers (as amended by 2003 c 83).
Other crossings—Infringement of existing franchises—Waivers (as amended by 2003 c 373).
Ferries, terminal facilities—Interim revenue warrants authorized.
Revenue refunding bonds to redeem interim warrants.
Interim warrants and refunding bonds—Laws applicable.
Unit or combined operation—Continuous project—Rental,
charter, lease of system property—Sale of unneeded property.
Charter of state ferries—Hazardous materials.
System as self-liquidating undertaking—Powers of department—Concessions.
Historic ferries—Acquisition by qualified persons or organizations.
Fixing of charges—Deposit of revenues.
Ferries revolving fund—Deposit of excess funds.
Consent to liability not general liability of state.
Seamen may sue for injuries—Venue.
Department as common carrier—Rights and liabilities.
Liability for damages as to persons or property.
Liability to persons other than shippers or passengers—Limitation.
Claim for damages—Filing—Contents—Time limitations.
Payment of claims.
Venue of actions—Enforcement of judgment.
Local law enforcement officers on ferries and terminals.
"No Smoking" areas on state ferries—Establishment directed.
Ferry service—Lummi Island to Orcas Island—Limitation on
operation.
Ferry service between Port Townsend and Keystone—Operation authorized, when.
Ferry service between Port Townsend and Keystone—Purpose.
State ferries—Review of tariffs and charges.
State ferries—Scope of review—Periodic reviews required.
State ferries—Local expressions—Ferry advisory committees.
Schedule of charges for state ferries—Review by department,
factors considered—Rule making by commission.
Public participation.
Refunding bonds authorized, 1961 Act.
Additional revenue bonds, refunding bonds, authorized, 1961
Act—Prior charge against Puget Sound capital construction
account if ferry system revenues insufficient.
Additional revenue bonds, refunding bonds, authorized, 1961
Act—Agreement to continue imposition of certain taxes.
Additional revenue bonds, refunding bonds, authorized, 1961
Act—Ferry system a revenue-producing undertaking—Debt
service—Tolls on ferry system and Hood Canal bridge.
Hood Canal bridge—Tolls, upkeep costs.
Additional revenue bonds, refunding bonds, authorized, 1961
Act—Revision of tolls to meet debt service.
Acquisition of additional ferries—Legislative finding—
Department authority.
Hood Canal bridge—Legislative finding—Authority to restore
or replace.
Hood Canal bridge—Authority to obtain federal emergency
relief funds.
Puget Sound capital construction account—Created—Use.
Puget Sound ferry operations account—Created—Use.
Parking or holding area for ferry patrons in conjunction with
municipal off-street parking facilities.
General obligation bonds—Ferries—Authorized—Purposes—Passenger-only vessels—Issuance, sale, and retirement.
Disposition of proceeds from sale of bonds.
Bonds—Terms—Principal and interest payable from proceeds
of state excise taxes on motor vehicle and special fuels.
Repayment of bonds—Fund sources.
Bonds—Powers and duties of state finance committee.
Excess repayment funds—Disposition.
Reimbursements and transfers of funds.
Bonds legal investment for public funds.
Bonds—Equal charge against revenues from motor vehicle
and special fuel excise taxes.
Passenger ferry account.
Passenger-only ferry service—Finding.
[Title 47 RCW—page 195]
47.60.010
47.60.652
47.60.654
47.60.656
47.60.680
47.60.690
47.60.700
47.60.710
47.60.720
47.60.730
47.60.740
47.60.750
47.60.760
47.60.770
47.60.772
47.60.774
47.60.776
47.60.778
47.60.780
47.60.800
47.60.802
47.60.804
47.60.806
47.60.808
47.60.810
47.60.812
47.60.814
47.60.816
47.60.818
47.60.820
47.60.822
Title 47 RCW: Public Highways and Transportation
Passenger-only ferry service—Vessel and terminal acquisition, procurement, and construction.
Passenger-only ferry service—Contingency.
Passenger-only ferry service—Conveyance of vessels authorized.
Prequalification of contractors required.
Qualifications of contractor—Rules to assure.
Application for prequalification—Form.
Department authority to obtain information.
Additional investigation—Terms of prequalification—Notice
of nonqualification.
Renewal of prequalification—Nonrenewal or revocation,
notice.
Rejection of bid despite prequalification—Unqualified bidder.
Appeal of refusal, modification, or revocation of prequalification.
Financial information regarding qualifying not public.
Jumbo ferry construction—Notice.
Jumbo ferry construction—Bidding documents.
Jumbo ferry construction—Procedure on conclusion of evaluation.
Jumbo ferry construction—Contract.
Jumbo ferry construction—Bid deposits—Low bidder claiming error.
Jumbo ferry construction—Propulsion system acquisition.
General obligation bonds—1992 issue—Purpose—Issuance
and sale.
Bonds—1992 issue—Supervision of sale by state finance
committee—Option of short-term obligations.
Bonds—1992 issue—Use of proceeds.
Bonds—1992 issue—Payment of principal and interest from
pledged excise taxes.
Bonds—1992 issue—Payment from ferry bond retirement
fund.
Design-build ferries—Authorized—Phases defined.
Design-build ferries—Notice of request for proposals.
Design-build ferries—Issuance of request for proposals.
Design-build ferries—Phase one.
Design-build ferries—Phase two.
Design-build ferries—Phase three.
Design-build ferries—Notice to proposers not selected—
Appeal.
The authority of the department to sell and lease back
any state ferry, for federal tax purposes only, as authorized by
26 U.S.C., Sec. 168(f)(8) is confirmed. Legal title and all
incidents of legal title to any ferry sold and leased back
(except for the federal tax benefits attributable to the ownership thereof) shall remain in the state of Washington. [1984
c 18 § 1; 1984 c 7 § 296; 1961 c 13 § 47.60.010. Prior: 1949
c 179 § 1; Rem. Supp. 1949 § 6584-30.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.013
47.60.013 Emergency powers of governor to insure
continued operation of ferry and toll bridge system—Cost
reimbursement. The governor is authorized to take such
actions as may be necessary to insure the continued operation
of the Puget Sound ferry and toll bridge system under any
emergency circumstances which threaten the continued operation of the system. In the event of such an emergency, the
governor may assume all the powers granted by law to the
transportation commission and department of transportation
with respect to the ferry system. In addition, notwithstanding
the provisions of chapters 47.60 and 47.64 RCW, the governor may contract with any qualified persons for the operation
of the Washington state ferry system, or any part thereof, or
for ferry service to be provided by privately owned vessels.
Administrative costs to the office of the governor incurred in
the exercise of this authority shall be reimbursed by the
department. [1981 c 341 § 1.]
Severability—1981 c 341: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1981 c 341 § 2.]
Bridges across navigable waters: RCW 79.91.090 through 79.91.120.
47.60.015
Credit permits for vehicular passage: RCW 47.56.247, 47.56.248.
Sale, lease of unneeded toll facility, ferry system property—Franchises for
utility, railway purposes: RCW 47.56.253 through 47.56.257.
Traffic violations and unlawful acts on toll facility or ferry: RCW 46.61.690.
47.60.015 "Washington State Ferries"—Name
authorized. The department is authorized to operate its ferry
system under the name: "Washington State Ferries." [1984 c
7 § 297; 1961 c 13 § 47.60.015. Prior: 1953 c 33 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.010
47.60.010 Ferry system, toll bridges, and facilities
authorized—Power to contract, sell and lease back. The
department is authorized to acquire by lease, charter, contract, purchase, condemnation, or construction, and partly by
any or all of such means, and to thereafter operate, improve,
and extend, a system of ferries on and crossing Puget Sound
and any of its tributary waters and connections thereof, and
connecting with the public streets and highways in the state.
The system of ferries shall include such boats, vessels,
wharves, docks, approaches, landings, franchises, licenses,
and appurtenances as shall be determined by the department
to be necessary or desirable for efficient operation of the ferry
system and best serve the public. The department may in like
manner acquire by purchase, condemnation, or construction
and include in the ferry system such toll bridges, approaches,
and connecting roadways as may be deemed by the department advantageous in channeling traffic to points served by
the ferry system. In addition to the powers of acquisition
granted by this section, the department is empowered to enter
into any contracts, agreements, or leases with any person,
firm, or corporation and to thereby provide, on such terms
and conditions as it shall determine, for the operation of any
ferry or ferries or system thereof, whether acquired by the
department or not.
[Title 47 RCW—page 196]
47.60.017
47.60.017 State ferry system a public mass transportation system. The legislature finds and declares that the
state ferry system is a public mass transportation system.
[1974 ex.s. c 105 § 1.]
47.60.020
47.60.020 Eminent domain—Condemnation proceedings. For the purpose of carrying out any or all of the
powers granted in this chapter, the department has the power
of eminent domain for the acquisition of either real or personal property, used or useful for the Puget Sound ferry system. Condemnation pursuant to this chapter shall be the procedure set out in chapter 8.04 RCW. The department may
institute condemnation proceedings in the superior court of
any county or other court of competent jurisdiction in which
any of the property sought to be condemned is located or in
which the owner of any thereof does business, and the court
in any such action has jurisdiction to condemn property
wherever located within the state. It shall not be necessary to
allege or prove any offer to purchase or inability to agree with
the owners thereof for the purchase of any such property in
the proceedings. It is the intention of this section to permit the
consolidation in one action of all condemnation proceedings
necessary to acquire a ferry system and every type of prop(2004 Ed.)
Puget Sound Ferry and Toll Bridge System
erty incident thereto, irrespective of its location within the
state or diversity of ownership. Upon the filing of a petition
for condemnation as provided in this section, the court may
issue an order restraining the removal from the jurisdiction of
the state of any personal property sought to be acquired by
the proceeding during the pendency thereof. The court further
has the power to issue such orders or process as are necessary
to place the department into possession of any property condemned. [1984 c 7 § 298; 1961 c 13 § 47.60.020. Prior: 1949
c 179 § 2; Rem. Supp. 1949 § 6584-31.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.030
47.60.030 Existing contracts—Prior negotiations and
bids validated. In any case where the department takes over
any property or properties which are under lease, contract, or
concession, or where the department has heretofore entered
into any contract or negotiation or received any bid for any of
the purposes set forth in this chapter, the department is authorized to continue in effect and carry out any such contract,
lease, or concession or complete any such negotiation or
accept any such bid or any modification of any of them which
appears advantageous to the department without regard to
any limitations or directions as to the manner thereof contained in this chapter. However, this section shall not be construed as requiring the department so to act, but this section is
permissive only and then only in respect to contracts, leases,
concessions, negotiations, or bids existing, entered into, or
received prior to April 1, 1949. [1984 c 7 § 299; 1961 c 13 §
47.60.030. Prior: 1949 c 179 § 7; Rem. Supp. 1949 § 658436.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.040
47.60.040 Survey by department. For the purpose of
obtaining information for the consideration of the department
upon the acquisition of any ferries or ferry facilities or the
construction of any toll bridge under this chapter, the department shall make any examination, investigation, survey, or
reconnaissance for the determination of material facts pertaining thereto.
The cost of any such examination, investigation, survey,
or reconnaissance, and all preliminary expenses leading up to
and resulting in the issuance of any revenue bonds including,
but not being limited to expenses in making surveys and
appraisals and the drafting, printing, issuance, and sale of
bonds under this chapter shall be borne by the department out
of the motor vehicle fund. All such costs and expenses as well
as any thereof heretofore incurred shall be reimbursed to the
motor vehicle fund out of any proceeds derived from the sale
of bonds or out of tolls and revenues to be derived by the
department through its operations hereunder. [1984 c 7 §
300; 1961 c 13 § 47.60.040. Prior: 1949 c 179 § 4, part; Rem.
Supp. 1949 § 6584-33, part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.080
c 13 § 47.60.050. Prior: 1949 c 179 § 3, part; Rem. Supp.
1949 § 6584-32, part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.060
47.60.060 Revenue bonds authorized—Issuance—
Conditions—Negotiability—Interim bonds. For the purpose of paying the cost of acquiring by lease, charter, contract, purchase, condemnation, or construction all or any part
of such Puget Sound ferry system, including toll bridges,
approaches, and roadways incidental thereto, and for rehabilitating, rebuilding, enlarging, or improving all or any part of
the system, the department is authorized by resolution to
issue its revenue bonds which shall constitute obligations
only of the department and shall be payable solely and only
from all or such part of the revenues from the operation of the
system as may be provided in and by the resolution.
Each revenue bond shall contain a recital that payment or
redemption of the bond and payment of the interest thereon is
secured by a direct charge and lien upon the tolls and revenues pledged for that purpose and that the bond does not constitute an indebtedness of the state of Washington.
The department is empowered to include in any resolution authorizing the issuance of the bonds such covenants,
stipulations, and conditions as may be deemed necessary with
respect to the continued use and application of the income
and revenues from the undertaking.
The revenue bonds may bear such date or dates, may
mature at such time or times as the department determines,
may bear interest at such rate or rates, may be in such denomination or denominations, may be in such form, either coupon
or registered, may carry such registration and conversion
privileges, may be made subject to such terms of redemption
with or without premium, and may contain such other terms
and covenants not inconsistent with this chapter as may be
provided in the resolution. Notwithstanding the form or tenor
thereof, and in the absence of an express recital on the face
thereof that the bond is nonnegotiable, each such revenue
bond shall at all times be and shall be treated as a negotiable
instrument for all purposes. All such bonds shall be signed by
the state treasurer and countersigned by the governor, and
any interest coupons appertaining thereto shall bear the signature of the state treasurer. The countersignature of the governor on the bonds and the signature of the state treasurer on
the coupons may be their printed or lithographed facsimile
signatures.
Pending the issuance of definitive bonds, temporary or
interim bonds, certificates, or receipts of any denomination
and with or without coupons attached may be issued as may
be provided by the resolution. [1984 c 7 § 302; 1973 c 106 §
28; 1970 ex.s. c 56 § 65; 1969 ex.s. c 232 § 34; 1961 c 13 §
47.60.060. Prior: 1949 c 179 § 4, part; Rem. Supp. 1949 §
6584-33, part.]
Severability—1984 c 7: See note following RCW 47.01.141.
Purpose—1970 ex.s. c 56: See note following RCW 39.52.020.
47.60.050
47.60.050 Improvement of facilities—Financing.
Any facility that the department acquires or is authorized to
acquire under the provisions of this chapter may be rehabilitated, rebuilt, enlarged, or improved, and the cost thereof may
be paid from the revenues of the system or through the issuance of bonds as hereinafter provided. [1984 c 7 § 301; 1961
(2004 Ed.)
Validation—Saving—Severability—1969 ex.s. c 232: See notes following RCW 39.52.020.
47.60.080
47.60.080 Determining amount of bonds to be issued.
In determining the amount of bonds required to be issued
there may be included any expenses incurred by the depart[Title 47 RCW—page 197]
47.60.090
Title 47 RCW: Public Highways and Transportation
ment in connection with and incidental to the issuance and
sale of bonds and for the preparation of surveys and estimates
and making inspections and examinations, interest during the
estimated construction period, and for six months thereafter,
and a reasonable amount for working capital and prepaid
insurance. [1984 c 7 § 303; 1961 c 13 § 47.60.080. Prior:
1949 c 179 § 4, part; Rem. Supp. 1949 § 6584-33, part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.090
47.60.090 Sale of bonds—Deposit, disbursement of
proceeds. All bonds issued under or by authority of this
chapter shall be sold to the highest and best bidder after such
advertising for bids as the department deems proper. However, the department may reject any and all bids so submitted
and thereafter sell such bonds so advertised under such terms
and conditions as it deems most advantageous to its own
interests. The purchase price of all bonds issued under this
chapter shall be paid to the state treasurer consistent with the
provisions of the resolution pursuant to which the bonds have
been issued or to the trustee designated in the bond resolution
and held as a separate trust fund to be disbursed on the orders
of the department. [1984 c 7 § 304; 1961 c 13 § 47.60.090.
Prior: 1949 c 179 § 4, part; Rem. Supp. 1949 § 6584-33,
part.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.100
47.60.100 Bonds are legal investment for state moneys. Notwithstanding any other provision of the law, bonds
issued by the authority shall be legal investments by the state
investment board of any state moneys in its hands, except
permanent school funds and motor vehicle funds. [1981 c 3
§ 40; 1961 c 13 § 47.60.100. Prior: 1953 c 154 § 14; 1951 c
259 § 3; 1951 c 121 § 14; 1949 c 179 § 8; Rem. Supp. 1949 §
6584-37.]
Effective dates—Severability—1981 c 3: See notes following RCW
43.33A.010.
47.60.110
47.60.110 Bondholders may compel performance.
The holder of any bond or the trustee for any bonds designated by resolution may by mandamus or other appropriate
proceeding require and compel performance of any duties
imposed upon any state department, official or employee,
including any duties imposed upon or undertaken by the
authority or its officers, agents and employees in connection
with the construction, maintenance and operation of the ferry
system and in connection with the collection, deposit, investment, application and disbursement of the proceeds of the
bonds and the revenue and income derived from the operation of the system. [1961 c 13 § 47.60.110. Prior: 1949 c 179
§ 4, part; Rem. Supp. 1949 § 6584-33, part.]
47.60.113
47.60.113 Refunding bonds—Authorization—
Amount—Interest—Conditions. The department is authorized to refund, at the maturity thereof, or before the maturity
thereof if they are subject to call prior to maturity or if all of
the holders thereof consent thereto, upon such terms and conditions as it deems best, any or all of its revenue bonds now
or hereafter outstanding, issued for the purpose of acquiring,
constructing, or reconstructing any toll bridge, toll road, toll
tunnel, ferry system, or any other toll facility of any sort, or
[Title 47 RCW—page 198]
issued for the purpose of refunding such bonds, which revenue bonds are payable out of all or part of the revenues of the
toll facility. Refunding bonds may be issued hereunder in a
sufficient amount to provide additional funds for acquiring,
constructing, reconstructing, rehabilitating, rebuilding,
enlarging, or improving any toll bridge, toll road, toll tunnel,
ferry system, or any other toll facility of any sort, and to pay
all refunding costs and expenses and to provide adequate
reserves for the toll facility and for any such refunding bonds.
Various issues and series of such outstanding bonds, including refunding bonds, may be combined and refunded by a
single issue of refunding bonds. The refunding bonds shall
bear interest at such rates and mature at such times, without
limitation by the interest rates or maturity of the bonds being
refunded, and shall contain such other covenants and conditions as the department determines by resolution. [1984 c 7 §
305; 1961 c 13 § 47.60.113. Prior: 1957 c 152 § 1; 1955 c 17
§ 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.114 Refunding bonds—Payable from revenues. Any refunding bonds authorized by this chapter constitute obligations of the department only and not of the state of
Washington. They shall be payable solely out of all or such
part of the revenues derived from the operation of the toll
bridge, toll road, toll tunnel, ferry system, or any other toll
facility, as shall be provided in the resolution authorizing the
issuance of the refunding bonds. [1984 c 7 § 306; 1961 c 13
§ 47.60.114. Prior: 1957 c 152 § 2; 1955 c 17 § 2.]
47.60.114
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.115 Refunding bonds—Disposition—Laws
applicable. The bonds herein authorized shall, in the discretion of the department, be exchanged at the best possible
price for the bonds being refunded, or any such bonds not
exchanged shall be sold in the manner provided in RCW
47.60.090. The bonds herein authorized shall be issued in
accordance with, and shall be subject to, the provisions of
RCW 47.60.050, 47.60.060, 47.60.080, 47.60.100,
47.60.110, and 47.60.120. [1983 c 3 § 134; 1961 c 13 §
47.60.115. Prior: 1957 c 152 § 3; 1955 c 17 § 3.]
47.60.115
47.60.120
47.60.120 Other crossings—Infringement of existing franchises—
Waivers (as amended by 2003 c 83). (1) If the department acquires or constructs, maintains, and operates any ferry crossings upon or toll bridges over
Puget Sound or any of its tributary or connecting waters, there shall not be
constructed, operated, or maintained any other ferry crossing upon or bridge
over any such waters within ten miles of any such crossing or bridge operated or maintained by the department excepting such bridges or ferry crossings in existence, and being operated and maintained under a lawfully issued
franchise at the time of the location of the ferry crossing or construction of
the toll bridge by the department.
(2) The ten-mile distance in subsection (1) of this section means ten
statute miles measured by airline distance. The ten-mile restriction shall be
applied by comparing the two end points (termini) of a state ferry crossing to
those of a private ferry crossing.
(3) The Washington utilities and transportation commission may, upon
written petition of a commercial ferry operator certificated or applying for
certification under chapter 81.84 RCW, and upon notice and hearing, grant a
waiver from the ten-mile restriction. The waiver must not be detrimental to
the public interest. In making a decision to waive the ten-mile restriction, the
commission shall consider, but is not limited to, the impact of the waiver on
transportation congestion mitigation, air quality improvement, and the overall impact on the Washington state ferry system. The commission shall act
upon a request for a waiver within ninety days after the conclusion of the
(2004 Ed.)
Puget Sound Ferry and Toll Bridge System
hearing. A waiver is effective for a period of five years from the date of issuance. At the end of five years the waiver becomes permanent unless
appealed within thirty days by the commission on its own motion, the department, or an interested party.
(4) The department shall not maintain and operate any ferry crossing or
toll bridge over Puget Sound or any of its tributary or connecting waters that
would infringe upon any franchise lawfully issued by the state and in existence and being exercised at the time of the location of the ferry crossing or
toll bridge by the department, without first acquiring the rights granted to
such franchise holder under the franchise.
(5) This section does not apply to the operation of passenger-only ferry
service by public transportation benefit areas meeting the requirements of
RCW 36.57A.200 or to the operation of passenger-only ferry service by ferry
districts. [2003 c 83 § 204; 1993 c 427 § 1; 1984 c 7 § 307; 1961 c 13 §
47.60.120. Prior: 1949 c 179 § 6; Rem. Supp. 1949 § 6584-35.]
Findings—Intent—Captions, part headings not law—Severability—Effective date—2003 c 83: See notes following RCW 36.57A.200.
47.60.120
47.60.120 Other crossings—Infringement of existing franchises—
Waivers (as amended by 2003 c 373). (1) If the department acquires or constructs, maintains, and operates any ferry crossings upon or toll bridges over
Puget Sound or any of its tributary or connecting waters, there shall not be
constructed, operated, or maintained any other ferry crossing upon or bridge
over any such waters within ten miles of any such crossing or bridge operated or maintained by the department excepting such bridges or ferry crossings in existence, and being operated and maintained under a lawfully issued
franchise at the time of the location of the ferry crossing or construction of
the toll bridge by the department.
(2) The ten-mile distance in subsection (1) of this section means ten
statute miles measured by airline distance. The ten-mile restriction shall be
applied by comparing the two end points (termini) of a state ferry crossing to
those of a private ferry crossing.
(3) The Washington utilities and transportation commission may, upon
written petition of a commercial ferry operator certificated or applying for
certification under chapter 81.84 RCW, and upon notice and hearing, grant a
waiver from the ten-mile restriction. The waiver must not be detrimental to
the public interest. In making a decision to waive the ten-mile restriction, the
commission shall consider, but is not limited to, the impact of the waiver on
transportation congestion mitigation, air quality improvement, and the overall impact on the Washington state ferry system. The commission shall act
upon a request for a waiver within ninety days after the conclusion of the
hearing. A waiver is effective for a period of five years from the date of issuance. At the end of five years the waiver becomes permanent unless
appealed within thirty days by the commission on its own motion, the department, or an interested party.
(4) The department shall not maintain and operate any ferry crossing or
toll bridge over Puget Sound or any of its tributary or connecting waters that
would infringe upon any franchise lawfully issued by the state and in existence and being exercised at the time of the location of the ferry crossing or
toll bridge by the department, without first acquiring the rights granted to
such franchise holder under the franchise.
(5) This section does not apply to operators of passenger-only ferry service. [2003 c 373 § 2; 1993 c 427 § 1; 1984 c 7 § 307; 1961 c 13 § 47.60.120.
Prior: 1949 c 179 § 6; Rem. Supp. 1949 § 6584-35.]
Reviser's note: RCW 47.60.120 was amended twice during the 2003
legislative session, each without reference to the other. For rule of construction concerning sections amended more than once during the same legislative session, see RCW 1.12.025.
Findings—Intent—2003 c 373: See note following RCW 47.64.090.
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.122
47.60.122 Ferries, terminal facilities—Interim revenue warrants authorized. For the purpose of paying the
cost of acquiring, constructing, or reconstructing ferries or
ferry terminal facilities, and all costs which may be incurred
in connection therewith, the department is authorized to issue
interim revenue warrants, which shall constitute obligations
only of the department, and which shall not be obligations of
the state of Washington. Such warrants shall be payable
solely out of part or all of the revenues derived from the operation of the Puget Sound ferry system as shall be provided in
(2004 Ed.)
47.60.130
the resolution authorizing their issuance, and shall be drawn
upon, and the principal thereof and interest thereon shall be
payable out of, such fund or funds as shall be created in and
provided by the resolution. The warrants may be interestbearing coupon warrants with a fixed maturity date, or may
be interest-bearing registered warrants payable in order of
their issuance whenever there is sufficient money in the fund
upon which they were drawn to redeem any of them. [1984 c
7 § 308; 1961 c 13 § 47.60.122. Prior: 1953 c 159 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.124
47.60.124 Revenue refunding bonds to redeem
interim warrants. If it is deemed advisable or found necessary to redeem any or all of such warrants, the department is
authorized to issue its revenue refunding bonds for that purpose. The bonds shall constitute obligations only of the
department, and shall not be obligations of the state of Washington. The refunding bonds shall be payable solely out of
part or all of the revenues derived from the operation of the
Puget Sound ferry system as shall be provided in the resolution authorizing their issuance. [1984 c 7 § 309; 1961 c 13 §
47.60.124. Prior: 1953 c 159 § 2.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.126
47.60.126 Interim warrants and refunding bonds—
Laws applicable. All provisions of chapter 47.60 RCW pertaining and applicable to the revenue bonds of the department
authorized in that chapter are applicable to the warrants and
revenue refunding bonds authorized herein except insofar as
otherwise provided by RCW 47.60.122 through 47.60.126.
[1984 c 7 § 310; 1961 c 13 § 47.60.126. Prior: 1953 c 159 §
3.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.130
47.60.130 Unit or combined operation—Continuous
project—Rental, charter, lease of system property—Sale
of unneeded property. Such ferry system, including any toll
bridges, approaches, and roadways incidental thereto, may be
financed and operated in combination or separately as one or
more units as the department of transportation may determine, and such ferry system together with any toll bridge
hereafter constructed by the department upon or across the
waters of Puget Sound or Hood Canal, or any part of either,
replacing one or more presently operated ferry routes, is
declared to be a continuous project within the meaning of
RCW 47.56.070. The department is empowered to rent, lease,
or charter any property acquired under this chapter. If the
department determines that any real property (including
lands, improvements thereon, and any interests or estates)
originally acquired for the ferry system is no longer required
for the purposes of the ferry system, the department shall
offer it for sale in the manner and with the authority authorized to the department by RCW 47.12.063 or 47.12.283. The
secretary of transportation may adopt rules further implementing this section. The proceeds of all such sales shall be
paid into the separate trust fund of the state treasury established pursuant to RCW 47.60.150. [1979 ex.s. c 189 § 6;
1973 1st ex.s. c 177 § 5; 1961 c 13 § 47.60.130. Prior: 1955
c 22 § 1; 1953 c 32 § 1; 1949 c 179 § 3, part; Rem. Supp. 1949
§ 6584-32, part.]
[Title 47 RCW—page 199]
47.60.135
Title 47 RCW: Public Highways and Transportation
Effective date—1979 ex.s. c 189: See note following RCW 47.12.283.
47.60.135
47.60.135 Charter of state ferries—Hazardous materials. (1) The charter use of Washington State Ferry vessels
when established route operations and normal user requirements are not disrupted is permissible. In establishing chartering agreements, Washington State Ferries shall consider
the special needs of local communities and interested parties.
Washington State Ferries shall use sound business judgment
and be sensitive to the interests of existing private enterprises.
(2) Consistent with the policy as established in subsection (1) of this section, the chief executive officer of the
Washington State Ferries may approve agreements for the
chartering of Washington State Ferry vessels to groups or
individuals, including hazardous material transporters, in
accordance with the following:
(a) Vessels may be committed to charter only when
established route operation and normal user requirements are
not disrupted or inconvenienced. If a vessel is engaged in the
transport of hazardous materials, the transporter shall pay for
all legs necessary to complete the charter, even if the vessel is
simultaneously engaged in an operational voyage on behalf
of Washington State Ferries.
(b) Charter rates for vessels must be established at actual
vessel operating costs plus a market-rate profit margin.
Actual vessel operating costs include, but are not limited to,
all labor, fuel, and vessel maintenance costs incurred due to
the charter agreement, including deadheading and standby.
(c) Parties chartering Washington State Ferry vessels
shall comply with all applicable laws, rules, and regulations
during the charter voyage, and failure to so comply is cause
for immediate termination of the charter voyage. [2003 c 374
§ 1; 1997 c 323 § 2.]
Finding—1997 c 323: "The legislature finds that when established
route operations and normal user requirements are not disrupted Washington
state ferries may be used for the transportation of hazardous materials under
the chartering procedures and rates described in RCW 47.60.135." [1997 c
323 § 1.]
47.60.140
47.60.140 System as self-liquidating undertaking—
Powers of department—Concessions. (1) The department
is empowered to operate such ferry system, including all
operations, whether intrastate or international, upon any route
or routes, and toll bridges as a revenue-producing and selfliquidating undertaking. The department has full charge of
the construction, rehabilitation, rebuilding, enlarging,
improving, operation, and maintenance of the ferry system,
including toll bridges, approaches, and roadways incidental
thereto that may be authorized by the department, including
the collection of tolls and other charges for the services and
facilities of the undertaking. The department has the exclusive right to enter into leases and contracts for use and occupancy by other parties of the concessions and space located
on the ferries, wharves, docks, approaches, parking lots, and
landings, including the selling of commercial advertising
space and licenses to use the Washington State Ferries trademarks, but, except as provided in subsection (2) of this section, no such leases or contracts may be entered into for more
than ten years, nor without a competitive contract process,
except as otherwise provided in this section. The competitive
[Title 47 RCW—page 200]
process shall be either an invitation for bids in accordance
with the process established by chapter 43.19 RCW, or a
request for proposals in accordance with the process established by RCW 47.56.030. All revenues from commercial
advertising, concessions, parking, leases, and contracts must
be deposited in the Puget Sound ferry operations account in
accordance with RCW 47.60.150.
(2) As part of a joint development agreement under
which a public or private developer constructs or installs
improvements on ferry system property, the department may
lease all or part of such property and improvements to such
developers for that period of time, not to exceed fifty-five
years, or not to exceed thirty years for those areas located
within harbor areas, which the department determines is necessary to allow the developer to make reasonable recovery on
its initial investment. Any lease entered into as provided for
in this subsection that involves state aquatic lands shall conform with the Washington state Constitution and applicable
statutory requirements as determined by the department of
natural resources. That portion of the lease rate attributable
to the state aquatic lands shall be distributed in the same manner as other lease revenues derived from state aquatic lands as
provided in *RCW 79.24.580.
(3) The department shall include in the strategic planning
and performance assessment process, as required by RCW
43.88.090, an analysis of the compatibility of public and private partnerships with the state ferry system's core business,
and the department's efforts to maximize nonfarebox revenues and provide benefit to the public users of the ferry system facilities. The department shall include an assessment of
the need for an open solicitation to identify and select possible public or private partnerships in order to maximize the
value of projects and the state's investment in current and
future ferry system operations.
(a) When the department determines that an open solicitation is necessary, a request for proposal shall be released,
consisting of an open solicitation outlining functional specifications to be used as the basis for selecting partnerships in the
project.
(b) Any responses to the request for proposal shall be
evaluated, at a minimum, on the basis of compatibility with
the state ferry system's core business, potential to maximize
nonfarebox revenue, longevity of the possible partnership
commitment, and benefit to the public users of the ferry system facilities.
(c) If no responses are received, or those that are
received are incompatible with ferry system operations, or do
not meet the criteria stated in (b) of this subsection, the state
ferry system may proceed with state ferry system operating
strategies designed to achieve state ferry system objectives
without established partnerships. [2003 c 374 § 2; 1995 1st
sp.s. c 4 § 2; 1987 c 69 § 1; 1984 c 7 § 311; 1965 ex.s. c 170
§ 58; 1961 c 13 § 47.60.140. Prior: 1951 c 259 § 1; 1949 c
179 § 5, part; Rem. Supp. 1949 § 6584-34, part.]
*Reviser's note: RCW 79.24.580 was recodified as RCW 79.90.245
pursuant to 2003 c 334 § 569.
Effective date—1995 1st sp.s. c 4: See note following RCW
47.56.030.
Severability—1984 c 7: See note following RCW 47.01.141.
(2004 Ed.)
Puget Sound Ferry and Toll Bridge System
47.60.145
47.60.145 Historic ferries—Acquisition by qualified
persons or organizations. (1) An "historic ferry" is any vessel in the Washington state ferries fleet which has been listed
in the Washington state register of historic places.
(2) When the department of transportation determines
that an historic ferry is surplus to the needs of Washington
state ferries, the department shall call for proposals from persons who wish to acquire the historic ferry. Proposals for the
acquisition of an historic ferry shall be accepted only from
persons or organizations that (a) are a governmental entity or
a nonprofit corporation or association dedicated to the preservation of historic properties; (b) agree to a contract approved
by the state historic preservation officer, which requires the
preservation and maintenance of the historic ferry and provides that title to the ferry reverts to the state if the secretary
of transportation determines that the contract has been violated; and (c) demonstrate the administrative and financial
ability successfully to comply with the contract.
(3) The department shall evaluate the qualifying proposals and shall select the proposal which is most advantageous
to the state. Factors to be considered in making the selection
shall include but not be limited to:
(a) Extent and quality of restoration;
(b) Retention of original design and use;
(c) Public access to the vessel;
(d) Provisions for historical interpretation;
(e) Monetary return to the state.
(4) If there are no qualifying proposals, an historic ferry
shall be disposed of in the manner provided by state law.
[1982 c 210 § 1.]
Severability—1982 c 210: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1982 c 210 § 2.]
Archaeology and historic preservation, office of: Chapter 27.34 RCW.
47.60.150
47.60.150 Fixing of charges—Deposit of revenues.
Subject to the provisions of RCW 47.60.326, the schedule of
charges for the services and facilities of the system shall be
fixed and revised from time to time by the commission so that
the tolls and other revenues deposited in the Puget Sound
ferry operations account for maintenance and operation, and
all moneys in the Puget Sound capital construction account
available for debt service will yield annual revenue and
income sufficient, after allowance for all operating, maintenance, and repair expenses to pay the interest and principal
and sinking fund charges for all outstanding revenue bonds,
and to create and maintain a fund for ordinary renewals and
replacements: PROVIDED, That if provision is made by any
resolution for the issuance of revenue bonds for the creation
and maintenance of a special fund for rehabilitating, rebuilding, enlarging, or improving all or any part of the ferry system then such schedule of tolls and rates of charges shall be
fixed and revised so that the revenue and income will also be
sufficient to comply with such provision.
All income and revenues as collected by the ferry system
from any source shall be paid to the state treasurer for the
account of the department and deposited into the Puget
Sound ferry operations account. Nothing in this section
requires tolls on the Hood Canal bridge except as may be
required by any bond covenants. [2003 c 374 § 3; 1999 c 94
(2004 Ed.)
47.60.210
§ 26; 1990 c 42 § 405. Prior: 1986 c 66 § 2; 1986 c 23 § 1;
1983 c 3 § 135; 1972 ex.s. c 24 § 5; 1961 c 13 § 47.60.150;
prior: 1949 c 179 § 5, part; Rem. Supp. 1949 § 6584-34,
part.]
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
Purpose—Headings—Severability—Effective dates—Application—Implementation—1990 c 42: See notes following RCW 82.36.025.
Effective date—1986 c 66: "This act shall take effect July 1, 1987. The
secretary of transportation may immediately take such steps as are necessary
to ensure that this act is implemented on its effective date." [1986 c 66 § 14.]
Effective date—1986 c 23: "This act shall take effect on July 1, 1987.
The secretary of transportation may immediately take such steps as may be
necessary to insure that this act is implemented on its effective date." [1986
c 23 § 2.]
47.60.170
47.60.170 Ferries revolving fund—Deposit of excess
funds. Nothing in RCW 47.60.150 forbids the establishment
by the department of a Washington state ferries revolving
fund of not to exceed six hundred thousand dollars from the
proceeds of any bonds sold under the provisions of this chapter. The fund may be deposited by the department in such
banks or financial institutions as it may select throughout the
state. RCW 43.01.050 does not apply to the fund or any
deposits therein made by the department under this section.
The department may deposit all moneys received under this
chapter in the fund. All expenses whatsoever arising in the
operations of the Puget Sound ferry system shall be paid from
the fund, if established, by check or voucher in such manner
as may be prescribed by the department.
All moneys received by the department or any employee
under the foregoing sections of this chapter, except an
amount of petty cash for each day's needs as fixed by the regulation of the department, shall each day and as often during
the day as advisable, be deposited in the nearest authorized
depositary selected by the department under this section.
Whenever the fund exceeds six hundred thousand dollars, the department shall forthwith transmit the excess to the
state treasurer for deposit in the trust fund established by
RCW 47.60.150. [1984 c 7 § 313; 1970 ex.s. c 85 § 6; 1961
c 13 § 47.60.170. Prior: 1951 c 259 § 13.]
Severability—1984 c 7: See note following RCW 47.01.141.
Effective date—1970 ex.s. c 85: See note following RCW 47.60.500.
47.60.200
47.60.200 Consent to liability not general liability of
state. Any consent to liability given under the provisions of
this chapter creates liability of the department only and does
not create any general liability of the state. [1984 c 7 § 314;
1961 c 13 § 47.60.200. Prior: 1951 c 259 § 5.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.210
47.60.210 Seamen may sue for injuries—Venue. The
state consents to suits against the department by seamen for
injuries occurring upon vessels of the department in accordance with the provisions of section 688, title 46, of the
United States code. The venue of such actions may be in the
superior court for Thurston county or the county where the
injury occurred. [1984 c 7 § 315; 1961 c 13 § 47.60.210.
Prior: 1951 c 259 § 6.]
Severability—1984 c 7: See note following RCW 47.01.141.
[Title 47 RCW—page 201]
47.60.220
Title 47 RCW: Public Highways and Transportation
47.60.220
47.60.220 Department as common carrier—Rights
and liabilities. The department has all the obligations,
duties, and rights of a common carrier of persons and property in its operation of ferries, terminals, or other facilities
used in its ferry operations, including the right to participate
in joint rates and through routes, agreements, and divisions of
through and joint rates with railroads and other common carriers and the right to make any filings with the interstate commerce commission, the United States maritime commission,
or any other state or federal regulatory or governmental body
and to comply with the lawful rules and regulations or
requirements of any such body, and is subject to laws relating
to carrier's liability for loss or damage to property transported, and for personal injury or death of persons transported. [1984 c 7 § 316; 1961 c 13 § 47.60.220. Prior: 1951
c 259 § 7.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.230
47.60.230 Liability for damages as to persons or
property. In case of property loss or damage or personal
injuries or death resulting from the operation of any ferry or
terminal by the department, any person or the personal representative of any person, subject to and to the extent hereinafter provided, has a right of action against the department for
the damage, loss, injury, or death. [1984 c 7 § 317; 1961 c 13
§ 47.60.230. Prior: 1951 c 259 § 8.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.240
47.60.240 Liability to persons other than shippers or
passengers—Limitation. The right of action extended by
this chapter is applicable to loss or damage of property and/or
personal injury or death resulting from the operation of ferries or terminals by the department to persons other than shippers or passengers, but any recovery of damages in such
cases shall not exceed an amount equal to the limitations of
the insurance carried by the department to insure it against
loss for such liability. [1984 c 7 § 318; 1961 c 13 §
47.60.240. Prior: 1951 c 259 § 9.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.250
47.60.250 Claim for damages—Filing—Contents—
Time limitations. As a condition to a recovery thereon, a
verified claim against the department growing out of such
damages, loss, injuries, or death must first be presented to the
department and filed with the secretary within one hundred
twenty days after the time when the claim accrued. If the
claimant is incapacitated from verifying and filing a claim
within the one hundred twenty days, or if the claimant is a
minor, then the claim may be verified and presented on
behalf of the claimant by his or her relative, attorney, or
agent. Each claim must accurately locate and describe the
event or defect that caused the damage, loss, injury, or death,
reasonably describe the damage, loss, or injury, and state the
time when the damage, loss, or injury occurred, give the
claimant's residence for the last six months, and contain the
items of damages claimed. No action may be maintained
against the department upon the claim until the claim has
been presented to, and filed with, the department and sixty
days have elapsed after the presentation and filing, nor more
than three years after the claim accrued.
[Title 47 RCW—page 202]
With respect to the content of the claims, this section
shall be liberally construed so that substantial compliance
will be deemed satisfactory. [1984 c 7 § 319; 1967 c 164 § 3;
1961 c 13 § 47.60.250. Prior: 1951 c 259 § 10.]
Severability—1984 c 7: See note following RCW 47.01.141.
Purpose—Severability—1967 c 164: See notes following RCW
4.96.010.
Claims against the state: Chapter 4.92 RCW.
47.60.260
47.60.260 Payment of claims. The department may
upon such terms and conditions as it may impose and under
such rules as it may adopt, pay claims arising under its operation of ferries or terminals or compromise or settle the
claims. No claim may be paid by the department or any settlement or compromise of it be made except from the operating revenues of the department derived from its operation of
ferries or terminals or from the proceeds of insurance recoveries. [1984 c 7 § 320; 1961 c 13 § 47.60.260. Prior: 1951 c
259 § 11.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.270
47.60.270 Venue of actions—Enforcement of judgment. Actions for the recovery of damages under RCW
47.60.220 through 47.60.260 may be brought in Thurston
county or in the county in which the aggrieved person
resides. No execution upon a judgment or attachment may be
levied against the property of the department, nor does the
state consent to any maritime lien against vessels of the
department, but the department may be required by order of
court to pay any judgment. [1984 c 7 § 321; 1961 c 13 §
47.60.270. Prior: 1951 c 259 § 12.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.275
47.60.275 Local law enforcement officers on ferries
and terminals. Law enforcement officers of cities, towns,
and counties which are served by state ferries shall have, and
are hereby authorized to exercise, concurrent jurisdiction and
authority with state law enforcement officers in the enforcement of laws of the state and local governmental divisions at
those state ferry terminals located within the respective governmental division served by such local law enforcement
officers and on state ferries at the terminals and throughout
the ferry runs, notwithstanding that the ferry may not be in
the officer's governmental division. [1969 ex.s. c 13 § 1.]
47.60.277
47.60.277 "No Smoking" areas on state ferries—
Establishment directed. See RCW 47.56.730.
47.60.280
47.60.280 Ferry service—Lummi Island to Orcas
Island—Limitation on operation. The department is authorized and directed to establish and operate a ferry service
from a suitable point on Lummi Island in Whatcom county to
a suitable point on Orcas Island in San Juan county by the
most feasible route if and when Whatcom county constructs a
bridge from Gooseberry Point on the mainland to Lummi
Island. The actual operation of the ferry service shall not
begin until Whatcom county has completed the construction
of such bridge. [1984 c 7 § 322; 1961 c 13 § 47.60.280. Prior:
1959 c 198 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
(2004 Ed.)
Puget Sound Ferry and Toll Bridge System
47.60.282
47.60.282 Ferry service between Port Townsend and
Keystone—Operation authorized, when. The department
is authorized to operate a ferry service between Port
Townsend and Keystone on Admiralty Inlet if the certificate
of convenience and necessity for the ferry operation is theretofore surrendered, rights thereunder are abandoned, and the
ferry service is discontinued. In no event may the department
undertake such a ferry service preceding events as set forth
herein or before April 1, 1973. [1984 c 7 § 323; 1972 ex.s. c
44 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.283
47.60.283 Ferry service between Port Townsend and
Keystone—Purpose. The purpose of RCW 47.60.282 and
47.60.283 is to provide service on the ferry route between
Port Townsend and Keystone to be determined by the department. Operation of this route is necessary for the economic
health, safety, and welfare of the people of the state. Additionally, state operation of this route will further benefit the
people of the state by providing better access to important
installations maintained by the United States Navy and the
United States Coast Guard. [1984 c 7 § 324; 1972 ex.s. c 44
§ 2.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.290
47.60.290 State ferries—Review of tariffs and
charges. Subject to the provisions of RCW 47.60.326, the
department is hereby authorized and directed to review tariffs
and charges as applicable to the operation of the Washington
state ferries for the purpose of establishing a more fair and
equitable tariff to be charged passengers, vehicles, and commodities on the routes of the Washington state ferries. [1983
c 3 § 136; 1972 ex.s. c 24 § 6; 1961 c 13 § 47.60.290. Prior:
1959 c 199 § 1.]
47.60.300
47.60.300 State ferries—Scope of review—Periodic
reviews required. The review shall include but not be limited to tariffs for automobiles, passengers, trucks, commutation rates, and volume discounts. The review shall give
proper consideration to time of travel, distance of travel,
operating costs, maintenance and repair expenses, and the
resultant effect any change in tariff might have on the debt
service requirements of the department as specifically provided in existing financing programs. The review shall also
include the allocation of vessels to particular runs, the scheduling of particular runs, the adequacy and arrangements of
docks and dock facilities, and any other subject deemed by
the department to be properly within the scope of the review.
The department is further authorized and directed to make a
like review within every three-year period. [1984 c 7 § 325;
1961 c 13 § 47.60.300. Prior: 1959 c 199 § 2.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.326
resentation may be established, the department shall give
prior notice of the review to the ferry advisory committees.
(2) The legislative authorities of San Juan, Skagit, Clallam, and Jefferson counties shall each appoint a committee to
consist of five members to serve as an advisory committee to
the department or its designated representative in such
review. The legislative authorities of other counties that contain ferry terminals shall appoint ferry advisory committees
consisting of three members for each terminal area in each
county, except for Vashon Island, which shall have one committee, and its members shall be appointed by the Vashon/Maury Island community council. At least one person
appointed to each ferry advisory committee shall be representative of an established ferry user group or of frequent users
of the ferry system. Each member shall reside in the vicinity
of the terminal that the advisory committee represents.
(3) The members of the San Juan, Clallam, and Jefferson
county ferry advisory committees shall be appointed for fouryear terms. The initial terms shall commence on July 1, 1982,
and end on June 30, 1986. Any vacancy shall be filled for the
remainder of the unexpired term by the appointing authority.
At least one person appointed to the advisory committee shall
be representative of an established ferry-user group or of frequent users of the ferry system, at least one shall be representative of persons or firms using or depending upon the ferry
system for commerce, and one member shall be representative of a local government planning body or its staff. Every
member shall be a resident of the county upon whose advisory committee he or she sits, and not more than three members shall at the time of their appointment be members of the
same major political party.
(4) The members of each terminal area committee shall
be appointed for four-year terms. The initial terms of the
members of each terminal area committee shall be staggered
as follows: All terms shall commence September 1, 1988,
with one member's term expiring August 31, 1990, one member's term expiring August 31, 1991, and the remaining member's term expiring August 31, 1992. Any vacancy shall be
filled for the remainder of the unexpired term by the appointing authority. Not more than two members of any terminalarea committee may be from the same political party at the
time of their appointment, and in a county having more than
one committee, the overall party representation shall be as
nearly equal as possible.
(5) The chairmen of the several committees constitute an
executive committee of the Washington state ferry users. The
executive committee shall meet twice each year with representatives of the marine division of the department to review
ferry system issues.
(6) The committees to be appointed by the county legislative authorities shall serve without fee or compensation.
[1988 c 100 § 1; 1983 c 15 § 24; 1983 c 3 § 137; 1977 c 29 §
1; 1961 c 13 § 47.60.310. Prior: 1959 c 199 § 3.]
Severability—1983 c 15: See RCW 47.64.910.
47.60.310
47.60.310 State ferries—Local expressions—Ferry
advisory committees. (1) The department is further directed
to conduct such review by soliciting and obtaining expressions from local community groups in order to be properly
informed as to problems being experienced within the area
served by the Washington state ferries. In order that local rep(2004 Ed.)
47.60.326
47.60.326 Schedule of charges for state ferries—
Review by department, factors considered—Rule making
by commission. (1) In order to maintain an adequate, fair,
and economically sound schedule of charges for the transportation of passengers, vehicles, and commodities on the Wash[Title 47 RCW—page 203]
47.60.330
Title 47 RCW: Public Highways and Transportation
ington state ferries, the department of transportation each
year shall conduct a full review of such charges.
(2) Prior to February 1st of each odd-numbered year the
department shall transmit to the transportation commission a
report of its review together with its recommendations for the
revision of a schedule of charges for the ensuing biennium.
The commission on or before July 1st of that year shall adopt
as a rule, in the manner provided by the Washington administrative procedure act, a schedule of charges for the Washington state ferries for the ensuing biennium commencing
July 1st. The schedule may initially be adopted as an emergency rule if necessary to take effect on, or as near as possible
to, July 1st.
(3) The department in making its review and formulating
recommendations and the commission in adopting a schedule
of charges may consider any of the following factors:
(a) The amount of subsidy available to the ferry system
for maintenance and operation;
(b) The time and distance of ferry runs;
(c) The maintenance and operation costs for ferry runs
with a proper adjustment for higher costs of operating outmoded or less efficient equipment;
(d) The efficient distribution of traffic between crosssound routes;
(e) The desirability of reasonable commutation rates for
persons using the ferry system to commute daily to work;
(f) The effect of proposed fares in increasing walk-on
and vehicular passenger use;
(g) The effect of proposed fares in promoting all types of
ferry use during nonpeak periods;
(h) The estimated revenues that are projected to be
earned by the ferry system from commercial advertisements,
parking, contracts, leases, and other sources;
(i) Such other factors as prudent managers of a major
ferry system would consider.
(4) If at any time during the biennium it appears that projected revenues from the Puget Sound ferry operations
account and any other operating subsidy available to the
Washington state ferries will be less than the projected total
cost of maintenance and operation of the Washington state
ferries for the biennium, the department shall forthwith
undertake a review of its schedule of charges to ascertain
whether or not the schedule of charges should be revised.
The department shall, upon completion of its review report,
submit its recommendation to the transportation commission
which may in its sound discretion revise the schedule of
charges as required to meet necessary maintenance and operation expenditures of the ferry system for the biennium or
may defer action until the regular annual review and revision
of ferry charges as provided in subsection (2) of this section.
(5) The provisions of RCW 47.60.330 relating to public
participation shall apply to the process of revising ferry tolls
under this section.
(6) Under RCW 43.135.055, the transportation commission may increase ferry tolls included in the schedule of
charges adopted under this section by a percentage that
exceeds the fiscal growth factor.
(7) Notwithstanding the provisions of this section and
chapter 81.28 RCW, and using sound business judgment, the
chief executive officer of the ferry system may authorize the
use of promotional, discounted, and special event fares to the
[Title 47 RCW—page 204]
general public and commercial enterprises for the purpose of
maximizing capacity use and the revenues collected by the
ferry system. The department shall report to the transportation commission a summary of the promotional, discounted,
and special event fares offered during each fiscal year and the
financial results from these activities. [2003 c 374 § 4; 2001
1st sp.s. c 1 § 1; 1999 c 94 § 27; 1990 c 42 § 406; 1983 c 15
§ 25; 1981 c 344 § 5.]
Effective date—2001 1st sp.s. c 1: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the
state government and its existing public institutions, and takes effect immediately [May 2, 2001]." [2001 1st sp.s. c 1 § 2.]
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
Purpose—Headings—Severability—Effective dates—Application—Implementation—1990 c 42: See notes following RCW 82.36.025.
Severability—1983 c 15: See RCW 47.64.910.
Severability—1981 c 344: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1981 c 344 § 8.]
47.60.330
47.60.330 Public participation. (1) Before a substantial expansion or curtailment in the level of service provided
to ferry users, or a revision in the schedule of ferry tolls or
charges, the department of transportation shall consult with
affected ferry users. The consultation shall be: (a) By public
hearing in affected local communities; (b) by review with the
affected ferry advisory committees pursuant to RCW
47.60.310; (c) by conducting a survey of affected ferry users;
or (d) by any combination of (a) through (c). Promotional,
discount, and special event fares that are not part of the published schedule of ferry charges or tolls are exempt. The
department shall report an accounting of all exempt revenues
to the transportation commission each fiscal year.
(2) There is created a ferry system productivity council
consisting of a representative of each ferry advisory committee empanelled under RCW 47.60.310, elected by the members thereof, and two representatives of employees of the
ferry system appointed by mutual agreement of all of the
unions representing ferry employees, which shall meet from
time to time with ferry system management to discuss means
of improving ferry system productivity.
(3) Before increasing ferry tolls the department of transportation shall consider all possible cost reductions with full
public participation as provided in subsection (1) of this section and, consistent with public policy, shall consider adapting service levels equitably on a route-by-route basis to
reflect trends in and forecasts of traffic usage. Forecasts of
traffic levels shall be developed by the bond covenant traffic
engineering firm appointed under the provisions of RCW
47.60.450. Provisions of this section shall not alter obligations under RCW 47.60.450. Before including any toll
increase in a budget proposal by the commission, the department of transportation shall consult with affected ferry users
in the manner prescribed in (1)(b) of this section plus the procedure of either (1)(a) or (c) of this section. [2003 c 374 § 5;
1983 c 15 § 26.]
Severability—1983 c 15: See RCW 47.64.910.
47.60.400
47.60.400 Refunding bonds authorized, 1961 Act.
The Washington toll bridge authority is authorized to issue
(2004 Ed.)
Puget Sound Ferry and Toll Bridge System
revenue bonds to refund all or any part of the authority's outstanding 1955 Washington state ferry system refunding revenue bonds and 1957 ferry and Hood Canal bridge revenue
bonds. With respect to the issuing of such bonds and the payment of principal and interest thereon, the payment into
reserves, sinking funds, and the fixing and revision of
charges for services and facilities of the system, and in managing all its fiscal operations, the authority shall have all the
powers and shall follow the same procedures established for
it under existing laws, except as otherwise provided herein.
[1986 c 66 § 3; 1961 ex.s. c 9 § 1.]
Reviser's note: Powers, duties, and functions of toll bridge authority
transferred to department of transportation; see RCW 47.01.031. Term
"Washington toll bridge authority" means department of transportation; see
RCW 47.04.015.
Effective date—1986 c 66: See note following RCW 47.60.150.
Appropriation—1961 ex.s. c 9: "There is hereby appropriated from
the motor vehicle fund to the Washington toll bridge authority, for the biennium ending June 30, 1963, the sum of two million six hundred thousand
dollars or so much thereof as may be necessary for the operation and maintenance of the Washington state ferries and the payments of principal and
interest on outstanding 1955 Washington state ferry system refunding revenue bonds and 1957 ferry and Hood Canal bridge revenue bonds and payments into reserves thereof as required by resolutions adopted by the authority with respect to such bond issues. Whenever such bond issues shall be
refunded, any unexpended part of this appropriation shall lapse." [1961 ex.s.
c 9 § 8.]
47.60.420
47.60.420 Additional revenue bonds, refunding
bonds, authorized, 1961 Act—Prior charge against Puget
Sound capital construction account if ferry system revenues insufficient. To the extent that all revenues from the
Washington state ferry system available therefor are insufficient to provide for the payment of principal and interest on
the bonds authorized and issued under RCW 47.60.400
through 47.60.450 and for sinking fund requirements established with respect thereto and for payment into such reserves
as the department has established with respect to the securing
of the bonds, there is imposed a first and prior charge against
the Puget Sound capital construction account of the motor
vehicle fund created by RCW 47.60.505 and, to the extent
required, against all revenues required by RCW 46.68.090 to
be deposited in the Puget Sound capital construction account.
To the extent that the revenues from the Washington
state ferry system available therefor are insufficient to meet
required payments of principal and interest on bonds, sinking
fund requirements, and payments into reserves, the department shall use moneys in the Puget Sound capital construction account for such purpose. [1999 c 269 § 15; 1990 c 42 §
407; 1986 c 66 § 4; 1984 c 7 § 330; 1961 ex.s. c 9 § 3.]
47.60.450
Sound capital construction account of the motor vehicle fund.
[1986 c 66 § 5; 1961 ex.s. c 9 § 4.]
Effective date—1986 c 66: See note following RCW 47.60.150.
47.60.440
47.60.440 Additional revenue bonds, refunding
bonds, authorized, 1961 Act—Ferry system a revenueproducing undertaking—Debt service—Tolls on ferry
system and Hood Canal bridge. The Washington state
ferry system shall be efficiently managed, operated, and
maintained as a revenue-producing undertaking. Subject to
the provisions of RCW 47.60.326 the commission shall
maintain and revise from time to time as necessary a schedule
of tolls and charges on said ferry system with other moneys
deposited in the Puget Sound ferry operations account for
maintenance and operation and all moneys in the Puget
Sound capital construction account available for debt service
will produce net revenue available for debt service, in each
fiscal year, in an amount at least equal to minimum annual
debt service requirements as hereinafter provided. Minimum
annual debt service requirements as used in this section shall
include required payments of principal and interest, sinking
fund requirements, and payments into reserves on all outstanding revenue bonds authorized by RCW 47.60.400
through *47.60.470.
The provisions of law relating to the revision of tolls and
charges to meet minimum annual debt service requirements
from net revenues as required by this section shall be binding
upon the commission but shall not be deemed to constitute a
contract to that effect for the benefit of the holders of such
bonds. [1999 c 94 § 28; 1990 c 42 § 408; 1986 c 66 § 6; 1983
c 3 § 139; 1972 ex.s. c 24 § 7; 1963 ex.s. c 3 § 42; 1961 ex.s.
c 9 § 5.]
*Reviser's note: RCW 47.60.470 was repealed by 1998 c 245 § 176.
Legislative finding—Effective dates—1999 c 94: See notes following
RCW 43.84.092.
Purpose—Headings—Severability—Effective dates—Application—Implementation—1990 c 42: See notes following RCW 82.36.025.
Effective date—1986 c 66: See note following RCW 47.60.150.
47.60.445
Effective date—1999 c 269: See note following RCW 36.78.070.
47.60.445 Hood Canal bridge—Tolls, upkeep costs.
Notwithstanding the provisions of RCW 47.56.240 and
47.56.245 the transportation commission shall not collect
tolls on the Hood Canal bridge for any purpose except where
necessary to comply with bond covenants.
The cost of maintenance, upkeep, and repair may be paid
from funds appropriated for the construction and maintenance of the primary state highways of the state of Washington. [1990 c 42 § 409.]
Purpose—Headings—Severability—Effective dates—Application—Implementation—1990 c 42: See notes following RCW 82.36.025.
Purpose—Headings—Severability—Effective dates—Application—Implementation—1990 c 42: See notes following RCW 82.36.025.
Effective date—1986 c 66: See note following RCW 47.60.150.
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.430
47.60.430 Additional revenue bonds, refunding
bonds, authorized, 1961 Act—Agreement to continue
imposition of certain taxes. So long as any bonds issued as
authorized herein are outstanding, the state hereby agrees to
continue to impose at least one-quarter cent of motor vehicle
fuel tax and one-quarter cent of special fuel tax required by
law and to deposit the proceeds of these taxes in the Puget
(2004 Ed.)
47.60.450
47.60.450 Additional revenue bonds, refunding
bonds, authorized, 1961 Act—Revision of tolls to meet
debt service. If the net revenue together with all moneys in
the Puget Sound capital construction account available for
debt service in any fiscal year fail to meet minimum annual
debt service for the year, as defined in RCW 47.60.440, the
commission shall promptly revise the tolls and charges after
considering supporting data and recommendations therefor
which shall be furnished by a nationally recognized traffic
[Title 47 RCW—page 205]
47.60.500
Title 47 RCW: Public Highways and Transportation
engineering firm retained by the commission in the manner
provided in the bond proceedings.
Tolls and charges shall not be increased in any case
when in the opinion of the engineering firm the increase
would so reduce traffic that no net gain in revenue would
result. This section is a covenant for the benefit of the holders
of the bonds. [1986 c 66 § 7; 1984 c 7 § 331; 1961 ex.s. c 9
§ 6.]
Effective date—1986 c 66: See note following RCW 47.60.150.
Severability—1984 c 7: See note following RCW 47.01.141.
47.60.500
47.60.500 Acquisition of additional ferries—Legislative finding—Department authority. (1) The legislature
finds that the state's ferry fleet available for mass transportation of people within the urban region of Puget Sound is critically deficient and that substantial financial assistance for
the acquisition of new ferries is necessary if the Washington
state ferries is to continue to fulfill its role in the Puget Sound
regional urban transportation system.
(2) The department is authorized:
(a) To apply to the United States secretary of transportation for a financial grant to assist the state to acquire urgently
needed ferries;
(b) To enter into an agreement with the United States
secretary of transportation or other duly authorized federal
officials and to assent to such conditions as may be necessary
to obtain financial assistance for the acquisition of additional
ferries. In connection with the agreement the department may
pledge any moneys in the Puget Sound capital construction
account, not required for debt service, in the motor vehicle
fund or any moneys to be deposited in the account for the purpose of paying the state's share of the cost of acquiring ferries. To the extent of the pledge the department shall use the
moneys available in the Puget Sound capital construction
account to meet the obligations as they arise. [1986 c 66 § 8;
1984 c 7 § 333; 1970 ex.s. c 85 § 1.]
Effective date—1986 c 66: See note following RCW 47.60.150.
Severability—1984 c 7: See note following RCW 47.01.141.
Effective date—1970 ex.s. c 85: "This 1970 amendatory act is necessary for the immediate preservation of the public peace, health and safety,
the support of the state government and its existing public institutions and
shall take effect April 1, 1970." [1970 ex.s. c 85 § 9.]
47.60.502
47.60.502 Hood Canal bridge—Legislative finding—
Authority to restore or replace. The legislature finds that
high tides and hurricane force winds on February 13, 1979,
caused conditions resulting in the catastrophic destruction of
the Hood Canal bridge on state route 104, a state highway on
the federal-aid system; and, as a consequence, the state of
Washington has sustained a sudden and complete failure of a
major segment of highway system with a disastrous impact
on transportation services between the counties of Washington's Olympic peninsula and the remainder of the state. The
governor has by proclamation found that these conditions
constitute an emergency. To minimize the economic loss and
hardship to residents of the Puget Sound and Olympic peninsula regions, the department of transportation is authorized
and directed to undertake immediately all necessary actions
to restore interim transportation services across Hood Canal
and Puget Sound and upon the Kitsap and Olympic peninsulas. The department is further authorized and directed to pro[Title 47 RCW—page 206]
ceed immediately with all necessary measures to survey the
damage to the Hood Canal bridge and to undertake the planning, design, and construction necessary to restore or replace
the Hood Canal bridge. [1979 c 27 § 1.]
Severability—1979 c 27: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1979 c 27 § 10.]
47.60.503
47.60.503 Hood Canal bridge—Authority to obtain
federal emergency relief funds. The department of transportation is authorized and directed to take all necessary steps
to obtain federal emergency relief funds to assist the state of
Washington in restoring transportation services across Hood
Canal and Puget Sound and upon the Kitsap and Olympic
peninsulas, including both interim measures and the ultimate
reconstruction or replacement of the Hood Canal bridge.
[1979 c 27 § 2.]
Severability—1979 c 27: See note following RCW 47.60.502.
47.60.505
47.60.505 Puget Sound capital construction
account—Created—Use. There is hereby created in the
motor vehicle fund the Puget Sound capital construction
account. All moneys hereafter deposited in said account shall
be used by the department of transportation for:
(1) Reimbursing the motor vehicle fund for all transfers
therefrom made in accordance with RCW 47.60.620; and
(2) Improving the Washington state ferry system including, but not limited to, vessel acquisition, vessel construction,
major and minor vessel improvements, terminal construction
and improvements, and reconstruction or replacement of, and
improvements to, the Hood Canal bridge, reimbursement of
the motor vehicle fund for any state funds, other than insurance proceeds, expended therefrom for reconstruction or
replacement of and improvements to the Hood Canal bridge,
pursuant to proper appropriations: PROVIDED, That any
funds accruing to the Puget Sound capital construction
account after June 30, 1979, which are not required to reimburse the motor vehicle fund pursuant to RCW 47.60.620 as
such obligations come due nor are required for capital
improvements of the Washington state ferries pursuant to
appropriations therefor shall from time to time as shall be
determined by the department of transportation be transferred
by the state treasurer to the Puget Sound ferry operations
account in the motor vehicle fund.
(3) The department may pledge any moneys in the Puget
Sound capital construction account or to be deposited in that
account to guarantee the payment of principal or interest on
bonds issued to refund the outstanding 1955 Washington
state ferry system refunding bonds and the 1957 ferry and
Hood Canal bridge revenue bonds.
The department may further pledge moneys in the Puget
Sound capital construction account to meet any sinking fund
requirements or reserves established by the department with
respect to any bond issues provided for in this section.
To the extent of any pledge authorized in this section, the
department shall use the first moneys available in the Puget
Sound capital construction account to meet such obligations
as they arise, and shall maintain a balance of not less than one
million dollars in the account for this purpose.
(2004 Ed.)
Puget Sound Ferry and Toll Bridge System
(4) The treasurer shall never transfer any moneys from
the Puget Sound capital construction account for use by the
department for state highway purposes so long as there is due
and unpaid any obligations for payment of principal, interest,
sinking funds, or reserves as required by any pledge of the
Puget Sound capital construction account. Whenever the
department has pledged any moneys in the account for the
purposes authorized in this section, the state agrees to continue to deposit in the Puget Sound capital construction
account the motor vehicle fuel taxes and special fuel taxes as
provided in RCW 82.36.020 and 82.38.290 and further
agrees that, so long as there exists any outstanding obligations pursuant to such pledge, to continue to impose such
taxes.
(5) Funds in the Puget Sound capital construction
account of the motor vehicle fund that are not required by the
department for payment of principal or interest on bond
issues or for any of the other purposes authorized in this
chapter may be invested by the department in bonds and obligations of the nature eligible for the investment of current
state funds as provided in RCW 43.84.080. [1986 c 66 § 9;
1979 c 27 § 3; 1977 ex.s. c 360 § 10; 1970 ex.s. c 85 § 2.]
Transfer of funds—1986 c 66: "Moneys in the Puget Sound reserve
account and ferry improvement fund on July 1, 1987, shall be transferred to
the Puget Sound capital construction account." [1986 c 66 § 13.]
Effective date—1986 c 66: See note following RCW 47.60.150.
47.60.560
cle fund, or to be deposited in the account, to guarantee the
payment of principal and interest on bonds issued by a
county, city, or other municipal corporation to finance the
acquisition or construction of the parking facility. In making
the pledge, the department shall reserve the right to issue its
own bonds for the purpose of paying the costs of acquiring
ferry vessels with the provision that the bonds shall rank on
parity with the bonds authorized by this section as a lien upon
moneys in or to be deposited in the Puget Sound capital construction account.
The department shall also reserve the right to pledge
moneys in the Puget Sound capital construction account to
guarantee subsequent bonds issued by any county, city, or
other municipal corporation to finance parking facilities as
authorized in subsection (1) of this section with the provision
that the subsequent bonds shall rank on parity with prior
bonds guaranteed pursuant to this section as a lien upon moneys in or to be deposited in the Puget Sound capital construction account. To the extent of any pledge herein authorized,
the department shall use the first moneys available in the
Puget Sound capital construction account to meet the obligations as they arise. [1986 c 66 § 10; 1984 c 7 § 335; 1975-'76
2nd ex.s. c 69 § 1.]
Effective date—1986 c 66: See note following RCW 47.60.150.
Severability—1984 c 7: See note following RCW 47.01.141.
Severability—1979 c 27: See note following RCW 47.60.502.
47.60.560
Severability—1977 ex.s. c 360: See note following RCW 47.60.560.
Effective date—1970 ex.s. c 85: See note following RCW 47.60.500.
47.60.530
47.60.530 Puget Sound ferry operations account—
Created—Use. There is hereby created in the motor vehicle
fund the Puget Sound ferry operations account to the credit of
which shall be deposited all moneys directed by law to be
deposited therein. All moneys deposited in this account shall
be expended pursuant to appropriations only for reimbursement of the motor vehicle fund for any state moneys, other
than insurance proceeds, expended therefrom for alternate
transportation services instituted as a result of the destruction
of the Hood Canal bridge, and for maintenance and operation
of the Washington state ferries including the Hood Canal
bridge, supplementing as required the revenues available
from the Washington state ferry system. [1979 c 27 § 4; 1972
ex.s. c 24 § 3.]
Severability—1979 c 27: See note following RCW 47.60.502.
47.60.550
47.60.550 Parking or holding area for ferry patrons
in conjunction with municipal off-street parking facilities.
(1) Whenever a county, city, or other municipal corporation
acquires or constructs a facility to be used in whole or in part
for off-street parking of motor vehicles which is in the immediate vicinity of an existing or planned ferry terminal, the
department may enter into an agreement with the local governmental body providing for the use in part or at specified
times of the facility as a holding area for traffic waiting to
board a ferry or for parking by ferry patrons.
(2) As a part of an agreement authorized by subsection
(1) of this section, the department, subject to the limitations
contained in RCW 47.60.505, may pledge any moneys in the
Puget Sound capital construction account in the motor vehi(2004 Ed.)
47.60.560 General obligation bonds—Ferries—
Authorized—Purposes—Passenger-only vessels—Issuance, sale, and retirement. In order to provide funds necessary for vessel acquisition, vessel construction, major and
minor vessel improvements, and terminal construction and
improvements for the Washington state ferries, there shall be
issued and sold upon the request of the department general
obligation bonds of the state of Washington in the sum of one
hundred thirty-five million dollars or such amount thereof as
may be required (together with other funds available therefor). If the state of Washington is able to obtain matching
funds from the urban mass transportation administration or
other federal government agencies for the acquisition of passenger-only vessels capable of operating as an integral part of
the Washington state ferries on Puget Sound and the Straits of
Juan de Fuca, a sufficient amount of the proceeds of the
bonds authorized herein shall be used to pay the state's share
of the acquisition cost of the passenger-only vessels. Upon
request being made by the department, the state finance committee shall supervise and provide for the issuance, sale, and
retirement of the bonds in accordance with chapter 39.42
RCW. The bonds may be sold from time to time in such
amounts as may be necessary for the orderly progress in constructing the ferries. The bonds shall be sold in such manner,
at such time or times, in such amounts, and at such price or
prices as the state finance committee shall determine. The
state finance committee may obtain insurance, letters of
credit, or other credit facility devices with respect to the
bonds and may authorize the execution and delivery of agreements, promissory notes, and other obligations for the purpose of insuring the payment or enhancing the marketability
of the bonds. Promissory notes or other obligations issued
under this section shall not constitute a debt or the contracting
of indebtedness under any constitutional or statutory indebt[Title 47 RCW—page 207]
47.60.570
Title 47 RCW: Public Highways and Transportation
edness limitation if their payment is conditioned upon the
failure of the state to pay the principal of or interest on the
bonds with respect to which the promissory notes or other
obligations relate. The state finance committee may authorize
the issuance of short-term obligations in lieu of long-term
obligations for the purposes of more favorable interest rates,
lower total interest costs, and increased marketability and for
the purposes of retiring the bonds during the life of the
project for which they were issued. [1986 c 290 § 8; 1985 c
176 § 1; 1984 c 7 § 336; 1977 ex.s. c 360 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
Severability—1977 ex.s. c 360: "If any provision of this 1977 amendatory act or its application to any person or circumstance is held invalid, the
remainder of the act, or the application of the provision to other persons or
circumstances is not affected." [1977 ex.s. c 360 § 13.]
47.60.570
47.60.570 Disposition of proceeds from sale of bonds.
The proceeds from the sale of the bonds shall be deposited in
the Puget Sound capital construction account of the motor
vehicle fund and such proceeds shall be available only for the
purposes enumerated in RCW 47.60.560, for the payment of
bond anticipation notes, if any, and for the payment of the
expense incurred in the drafting, printing, issuance, and sale
of such bonds. The costs of obtaining insurance, letters of
credit, or other credit enhancement devices with respect to
the bonds shall be considered to be expenses incurred in the
issuance and sale of the bonds. [1986 c 290 § 9; 1977 ex.s. c
360 § 2.]
Severability—1977 ex.s. c 360: See note following RCW 47.60.560.
47.60.580
47.60.580 Bonds—Terms—Principal and interest
payable from proceeds of state excise taxes on motor vehicle and special fuels. Bonds issued under the provisions of
RCW 47.60.560 shall distinctly state that they are a general
obligation of the state of Washington, shall pledge the full
faith and credit of the state to the payment of the principal
thereof and the interest thereon, and shall contain an unconditional promise to pay such principal and interest as the same
shall become due. The principal of and interest on such bonds
shall be first payable in the manner provided in RCW
47.60.560 through 47.60.640 from the proceeds of the state
excise taxes on motor vehicle and special fuels imposed by
chapters 82.36 and 82.38 RCW. Proceeds of such excise
taxes are hereby pledged to the payment of any bonds and the
interest thereon issued under the provisions of RCW
47.60.560 through 47.60.640 and the legislature hereby
agrees to continue to impose the same excise taxes on motor
vehicle and special fuels in amounts sufficient to pay, when
due, the principal and interest on all bonds issued under the
provisions of RCW 47.60.560 through 47.60.640. [1995 c
274 § 18; 1977 ex.s. c 360 § 3.]
Severability—1977 ex.s. c 360: See note following RCW 47.60.560.
47.60.590
47.60.590 Repayment of bonds—Fund sources. Any
funds required to repay the bonds authorized by RCW
47.60.560 or the interest thereon when due shall be taken
from that portion of the motor vehicle fund which results
from the imposition of excise taxes on motor vehicle and special fuels and which is distributed to the state for expenditure
pursuant to RCW 46.68.130 and shall never constitute a
charge against any allocations of such funds to counties, cit[Title 47 RCW—page 208]
ies, and towns unless and until the amount of the motor vehicle fund arising from the excise taxes on motor vehicle and
special fuels and available for state highway purposes proves
insufficient to meet the requirements for bond retirement or
interest on any such bonds. [1977 ex.s. c 360 § 4.]
Severability—1977 ex.s. c 360: See note following RCW 47.60.560.
47.60.600
47.60.600 Bonds—Powers and duties of state finance
committee. At least one year prior to the date any interest is
due and payable on such bonds or before the maturity date of
such bonds, the state finance committee shall estimate, subject to the provisions of RCW 47.60.590, the percentage of
the receipts in money of the motor vehicle fund resulting
from collection of excise taxes on motor vehicle and special
fuels, for each month of the year which shall be required to
meet interest or bond payments when due and shall notify the
treasurer of such estimated requirement. The state treasurer
shall thereafter from time to time each month as such funds
are paid into the motor vehicle fund, transfer such percentage
of the monthly receipts from excise taxes on motor vehicle
and special fuels of the motor vehicle fund to the ferry bond
retirement fund hereby created in the state treasury, which
funds shall be available solely for payment of the principal of
and interest on the bonds when due. If in any month it shall
appear that the estimated percentage of moneys so made is
insufficient to meet the requirements for payment of the principal thereof or interest thereon, the treasurer shall notify the
state finance committee forthwith and such committee shall
adjust its estimates so that all requirements for the interest on
and principal of all bonds issued shall be fully met at all
times. [1977 ex.s. c 360 § 5.]
Severability—1977 ex.s. c 360: See note following RCW 47.60.560.
47.60.610
47.60.610 Excess repayment funds—Disposition.
Whenever the percentage of the motor vehicle fund arising
from excise taxes on motor vehicle and special fuels payable
into the bond retirement fund proves more than is required for
the payment of interest on bonds when due, or current retirement of bonds, any excess may, in the discretion of the state
finance committee and with the concurrence of the department, be available for the prior redemption of any bonds or
remain available in the fund to reduce requirements upon the
fuel excise tax portion of the motor vehicle fund at the next
interest or bond payment period. [1984 c 7 § 337; 1977 ex.s.
c 360 § 6.]
Severability—1984 c 7: See note following RCW 47.01.141.
Severability—1977 ex.s. c 360: See note following RCW 47.60.560.
47.60.620
47.60.620 Reimbursements and transfers of funds.
Whenever, pursuant to RCW 47.60.600, the state treasurer
shall transfer funds from the motor vehicle fund to the ferry
bond retirement fund, the state treasurer shall at the same
time reimburse the motor vehicle fund in an identical amount
from the Puget Sound capital construction account. After
each transfer by the treasurer of funds from the motor vehicle
fund to the bond retirement fund and to the extent permitted
by RCW 47.60.420, 47.60.505(3), and 47.60.505(4), the obligation to reimburse the motor vehicle fund as required herein
shall constitute a first and prior charge against the funds
within and accruing to the Puget Sound capital construction
(2004 Ed.)
Puget Sound Ferry and Toll Bridge System
account, including the proceeds of the additional two-tenths
of one percent excise tax imposed by *RCW 82.44.020, as
amended by chapter 332, Laws of 1977 ex. sess. All funds
reimbursed to the motor vehicle fund as provided herein shall
be distributed to the state for expenditure pursuant to RCW
46.68.130. [1986 c 66 § 11; 1977 ex.s. c 360 § 7.]
*Reviser's note: RCW 82.44.020 was repealed by 2000 1st sp.s. c 1 §
47.60.680
tion commission to evaluate and determine the location of
new passenger-only ferry routes, the commission reviewed
several service alternatives, determined that the Southworth
to Seattle and Kingston to Seattle routes ranked highest, and
directed the Washington state ferries to proceed with the
design and permitting processes for passenger-only terminals
at both Southworth and Kingston. [1998 c 166 § 1.]
2.
Effective date—1986 c 66: See note following RCW 47.60.150.
Severability—1977 ex.s. c 360: See note following RCW 47.60.560.
47.60.630
47.60.630 Bonds legal investment for public funds.
The bonds authorized in RCW 47.60.560 through 47.60.640
shall constitute a legal investment for all state funds or for
funds under state control and all funds of municipal corporations. [1977 ex.s. c 360 § 8.]
Severability—1977 ex.s. c 360: See note following RCW 47.60.560.
47.60.640
47.60.640 Bonds—Equal charge against revenues
from motor vehicle and special fuel excise taxes. Bonds
issued under authority of RCW 47.60.560 through 47.60.640
and any subsequent general obligation bonds of the state of
Washington which may be authorized and which pledge
motor vehicle and special fuel excise taxes for the payment of
principal and interest thereon shall be an equal charge against
the revenues from such motor vehicle and special fuel excise
taxes. [1977 ex.s. c 360 § 9.]
Severability—1977 ex.s. c 360: See note following RCW 47.60.560.
47.60.652
47.60.652 Passenger-only ferry service—Vessel and
terminal acquisition, procurement, and construction. The
department is authorized to proceed with the acquisition, procurement, and construction of a maximum of four passengeronly vessels that respond to the service demands of state ferry
service on the Southworth to Seattle and Kingston to Seattle
ferry routes, including the terminal and docking facilities
necessary to accommodate such service. The acquisition,
procurement, and construction of vessels and terminals
authorized herein shall be undertaken in accordance with the
authority provided in RCW 47.56.030. [1998 c 166 § 2.]
47.60.654
47.60.654 Passenger-only ferry service—Contingency. The department's authority to proceed with the acquisition, procurement, and construction of vessels and terminals authorized under RCW 47.60.652 is contingent on a legislative appropriation approving that authority: PROVIDED,
That the appropriation does not reduce the current level of
funding for the maintenance and repair of vessels and terminals in service as of June 11, 1998. [1998 c 166 § 3.]
Reviser's note: Cf. 1998 c 346 § 913.
47.60.645
47.60.645 Passenger ferry account. There is hereby
established in the transportation fund the passenger ferry
account. Money in the account shall be used for capital
improvements for passenger ferry projects including, but not
limited to, pedestrian and transit facilities at ferry terminals
and passenger-only ferry vessels. Moneys in the account shall
be expended with legislative appropriation. [1995 2nd sp.s. c
14 § 558.]
Effective dates—1995 2nd sp.s. c 14: See note following RCW
43.105.017.
Severability—1995 2nd sp.s. c 14: See note following RCW
43.105.017.
47.60.649
47.60.649 Passenger-only ferry service—Finding.
The legislature finds and declares that there is a compelling
need for the construction of additional state ferry vessels and
corresponding terminal improvements in order to provide
more capacity and frequent service to meet the forecasted
travel demands of citizens traveling on Puget Sound ferry
routes. The vessel technology required must provide additional travel options for high growth ferry routes through
increased passenger-only ferry service.
The 1989 west corridor study evaluated cross-sound
travel through the year 2020 and identified the Southworth to
Seattle and the Kingston to Seattle passenger-only ferry
routes as promising based on criteria evaluating cost-effectiveness, time savings, physical constraints to operation, nonduplication of current service, and ability to relieve congestion.
Furthermore, as a result of legislative direction provided
in the 1991-93 transportation budget to the state transporta(2004 Ed.)
47.60.656
47.60.656 Passenger-only ferry service—Conveyance
of vessels authorized. The department of transportation may
enter into contracts with public transportation benefit areas
meeting the requirements of RCW 36.57A.200 or county
ferry districts to convey passenger-only ferry vessels and
other properties associated with passenger-only ferry service
that serve to provide passenger-only ferry service, as full or
part consideration for the benefit area or ferry district assuming all future maintenance and operation obligations and
costs required to maintain and operate the vessel and facilities. The conveyances must provide that the vessels or properties revert to the department if the vessels are not used for
providing passenger-only ferry service. [2003 c 83 § 203.]
Reviser's note: 2003 c 83 directed that this section be added to chapter
47.52 RCW. However, codification in chapter 47.60 RCW appears to be
more appropriate.
Findings—Intent—Captions, part headings not law—Severability—Effective date—2003 c 83: See notes following RCW 36.57A.200.
47.60.680
47.60.680 Prequalification of contractors required.
No contract for the construction, improvement, or repair of a
ferry, ferry terminal, or other facility operated by the Washington state ferries or for the repair, overhaul, or the drydocking of any ferry operated by Washington state ferries
may be awarded to any contractor who has not first been
prequalified to perform the work by the department of transportation. No bid or proposal for such a contract may be
received from any contractor who has not first been prequalified to perform the work by the department of transportation.
[1983 c 133 § 1.]
[Title 47 RCW—page 209]
47.60.690
Title 47 RCW: Public Highways and Transportation
47.60.690 Qualifications of contractor—Rules to
assure. The secretary of transportation shall adopt rules prescribing standards and criteria to assure that each ferry system construction and repair contract described in RCW
47.60.680 shall be awarded to a competent and responsible
contractor who has all of the following qualifications:
(1) Adequate financial resources, which may take into
account the ability of the contractor to secure such resources;
(2) The necessary organization, personnel, equipment,
facilities, experience, and technical qualification[s] to perform ferry system construction and repair contracts generally
and with respect to any specific contract such additional special qualifications as may be necessary to perform the contract;
(3) The ability to comply with the department's performance schedules taking into account the outstanding work on
all of the contractor's construction and repair contracts;
(4) A satisfactory record of performing previous contracts;
(5) A satisfactory record of integrity, judgment, and
skills; and
(6) Such other qualifications as the secretary may prescribe to assure that prequalified contractors are competent
and responsible. [1983 c 133 § 2.]
47.60.690
dollar amount or class of work specified thereunder, the
prequalification shall authorize a contractor to bid or submit
proposals on all ferry system construction and repair contracts mentioned in RCW 47.60.680 except contracts requiring special prequalification. If the department determines that
an applicant is not entitled to prequalification, it shall give
written notice of the determination to the applicant. [1983 c
133 § 5.]
47.60.730
47.60.730 Renewal of prequalification—Nonrenewal
or revocation, notice. A contractor may apply annually for
renewal of its prequalification by submission of a new or supplemental questionnaire and financial statement on standard
forms provided by the department. Based upon information
received at the time of renewal or at any other time the
department may amend the prequalification of the contractor
as to the dollar amount or class of work that the contractor
may perform or may refuse to renew the prequalification or
may revoke a prequalification previously approved, all in
accordance with the same standards and criteria used for considering an original application for prequalification. The
department shall give written notice of any such action to the
contractor. [1983 c 133 § 6.]
47.60.740
47.60.700 Application for prequalification—Form.
Any contractor desiring to submit bids or proposals for ferry
system construction or repair contracts as described in RCW
47.60.680 shall file an application for prequalification with
the department. The application shall be on a standard form
supplied by the department. The form shall require a complete statement of the applicant's financial ability, including a
statement of the applicant's current net assets and working
capital. The form shall require such additional information as
may be necessary for the department to determine whether or
not the applicant is entitled to be prequalified in accordance
with RCW 47.60.680 through 47.60.760 and the rules
adopted thereunder. [1983 c 133 § 3.]
47.60.700
47.60.710 Department authority to obtain information. Upon request by the department an applicant for
prequalification shall authorize the department to obtain any
information pertinent to the application, including information relating to the applicant's net worth, assets, and liabilities, from banks or other financial institutions, surety companies, and material and equipment suppliers. [1983 c 133 § 4.]
47.60.710
47.60.720 Additional investigation—Terms of
prequalification—Notice of nonqualification. Upon
receipt of an application by a contractor for prequalification
to perform ferry system construction and repair contracts, the
department shall conduct such additional investigation as it
deems necessary. If it finds that the applicant is qualified in
accordance with the rules as adopted by the secretary, the
department shall prequalify the contractor to perform the
contracts for a period of one year. The prequalification shall
fix the aggregate dollar amount of work, including any contract let by the department, that the contractor may have
under contract and uncompleted at any one time and may
limit the contractor to the submission of bids or proposals
upon a certain class of work. Subject to any restrictions on the
47.60.720
[Title 47 RCW—page 210]
47.60.740 Rejection of bid despite prequalification—
Unqualified bidder. If the department finds, after the opening of bids, that facts exist that would disqualify the lowest
bidder, or that the lowest bidder is not competent or responsible in accordance with the standards and criteria for prequalifying contractors, the department shall reject the bid despite
the prior prequalification of the bidder. No contract may be
awarded to a bidder not qualified to bid on it at the time fixed
for receiving bids. [1983 c 133 § 7.]
47.60.750
47.60.750 Appeal of refusal, modification, or revocation of prequalification. The action of the department in
refusing, modifying, or revoking the prequalification of any
contractor under RCW 47.60.680 through 47.60.740 is conclusive unless an appeal is filed with the Thurston county
superior court within ten days after receiving written notice
of the refusal, modification, or revocation. The appeal shall
be heard summarily within twenty days after the appeal is
taken and on five days notice thereof to the department. The
court shall hear any such appeal on the administrative record
that was before the department. The court may affirm the
decision of the department, or it may reverse the decision if it
determines the action of the department was arbitrary or
capricious. [1983 c 133 § 8.]
47.60.760
47.60.760 Financial information regarding qualifying not public. The department of transportation shall not be
required to make available for public inspection and copying
financial information supplied by any person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for a ferry system construction or repair contract as
required by RCW 47.60.680 through 47.60.750. [1983 c 133
§ 9.]
47.60.770
47.60.770 Jumbo ferry construction—Notice. Whenever the department is authorized to construct one or more
(2004 Ed.)
Puget Sound Ferry and Toll Bridge System
new jumbo ferry vessels under this chapter, it shall publish a
notice of its intent once a week for at least two consecutive
weeks in at least one trade paper and one other paper, both of
general circulation in the state. The notice shall contain, but
not be limited to, the following information:
(1) The number of jumbo ferry vessels to be constructed
and the proposed delivery date for each vessel;
(2) A short summary of the requirements for prequalification of bidders including a statement that prequalification
is a prerequisite to consideration by the department of any
bid, and a statement that the bidder shall submit its bid for the
vessel in compliance with the plans and specifications supplied by the state; and
(3) An address and telephone number that may be used
to obtain the bid package. [1993 c 493 § 1.]
47.60.776
(9) A requirement that all warranty work on the vessel be
performed within the boundaries of the state of Washington,
insofar as practicable;
(10) A statement that any bid submitted constitutes an
offer and remains open until ninety days after the deadline for
submitting bids, unless the firm submitting it withdraws it by
formal written notice that is received by the department
before the date and time specified for opening of the bids,
together with an explanation of the requirement that all bids
submitted be accompanied by a bid deposit in the amount of
five percent of the bid amount; and
(11) A listing of all equipment to be furnished by the
state. [1993 c 493 § 2.]
Effective date—1993 c 493: See note following RCW 47.60.770.
47.60.774
Effective date—1993 c 493: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[May 18, 1993]." [1993 c 493 § 8.]
47.60.772
47.60.772 Jumbo ferry construction—Bidding documents. The department shall send to any firm that requests it
bidding documents specifying the criteria for the jumbo ferry
vessels. The bid documents shall include, but not be limited
to, the following information:
(1) Solicitation of a bid to deliver to the department vessels that are constructed as specified by the plans and specifications provided by the department;
(2) A requirement that bids submitted should include one
bid for the construction of three vessels;
(3) The proposed delivery date for each vessel, the port
on Puget Sound where delivery will be taken, and the location where acceptance sea trials will be held;
(4) The amount and form of required contract security
under RCW 39.08.100;
(5) A copy of the vessel construction contract that will be
signed by the successful bidder;
(6) The date by which bids for ferry vessel construction
must be received by the department in order to be considered;
(7) A requirement that the contractor comply with all
applicable laws, rules, and regulations including, but not limited to those pertaining to the environment, worker health and
safety, and prevailing wages;
(8) A requirement that the vessels be constructed within
the boundaries of the state of Washington except that equipment furnished by the state and components, products, and
systems that are standard manufactured items are not subject
to the in-state requirement under this subsection. For the purposes of this section, "constructed" means: The fabrication,
by the joining together by welding or fastening of all steel
parts from which the total vessel is constructed, including,
but not limited to, all shell frames, longitudinals, bulkheads,
webs, piping runs, wire ways, and ducting. "Constructed"
also means the installation of all components and systems,
including, but not limited to, equipment and machinery, castings, electrical, electronics, deck covering, lining, paint and
joiner work, required by the contract. "Constructed" also
means the interconnection of all equipment, machinery, and
services, such as piping, wiring, and ducting;
(2004 Ed.)
47.60.774 Jumbo ferry construction—Procedure on
conclusion of evaluation. (1) Upon concluding its evaluation, the department may:
(a) Select the firm submitting the lowest responsible bid
for the construction of new jumbo ferries, taking into consideration the requirements stated in the bid documents and rank
the remaining firms, judging them by the same standards;
(b) Reject all bids not in compliance with the requirements contained in the bid documents;
(c) Reject all bids.
(2) The department shall immediately notify those firms
that were not selected as the firm presenting the lowest
responsible bid. The department's selection is conclusive
unless appeal from it is taken by an aggrieved firm to the
superior court of Thurston county within five days after
receiving notice of the department's final decision. The
appeal shall be heard summarily within ten days after it is
taken and on five days' notice to the department. The court
shall hear any appeal on the administrative record that was
before the department. The court may affirm the decision of
the department, or it may reverse the decision if it determines
the action of the department was arbitrary or capricious.
[1993 c 493 § 4.]
Effective date—1993 c 493: See note following RCW 47.60.770.
47.60.776
47.60.776 Jumbo ferry construction—Contract. (1)
Upon selecting the firm that has submitted the lowest responsible bid for the construction of new jumbo ferries, and ranking the remaining firms in order of preference, the department shall:
(a) Sign a contract with the firm presenting the lowest
responsible bid; or
(b) If a final agreement satisfactory to the department
cannot be signed with the firm presenting the lowest responsible bid, the department may sign a contract with the firm
ranked next lowest bidder. If necessary, the department may
repeat this procedure with each firm in order until the list of
firms has been exhausted, or reject all bids.
(2) In developing a contract for the construction of ferry
vessels, the department may, subject to the provisions of
*RCW 39.25.020, authorize the use of foreign-made materials and components, products, and systems that are standard
manufactured items in the construction of ferries in order to
minimize costs. [1993 c 493 § 5.]
*Reviser's note: RCW 39.25.020 was repealed by 1994 c 138 § 2.
[Title 47 RCW—page 211]
47.60.778
Title 47 RCW: Public Highways and Transportation
Effective date—1993 c 493: See note following RCW 47.60.770.
47.60.778 Jumbo ferry construction—Bid deposits—
Low bidder claiming error. Bids submitted by firms under
this section constitute an offer and shall remain open for
ninety days. When submitted, each bid shall be accompanied
by a deposit in cash, certified check, cashier's check, or surety
bond in an amount equal to five percent of the bid amount,
and no bid may be considered unless the deposit is enclosed.
If the department awards a contract to a firm and the firm fails
to enter into a contract or fails to furnish a satisfactory contract security as required by RCW 39.08.100, its deposit shall
be forfeited to the state and be deposited by the state treasurer
to the credit of the Puget Sound capital construction account.
A low bidder who claims error and fails to enter into a contract is prohibited from bidding on the same project if a second or subsequent call for bids is made for the project. Upon
the execution of a ferry construction contract for the construction of new jumbo ferries, all bid deposits shall be
returned. [1996 c 18 § 9; 1993 c 493 § 6.]
47.60.778
Effective date—1993 c 493: See note following RCW 47.60.770.
47.60.780 Jumbo ferry construction—Propulsion
system acquisition. (1) The department may enter into a
contract for the acquisition of the propulsion system, or any
component of it, including diesel engines and spare parts, for
installation into one or more of the three Jumbo Class Mark II
ferry vessels authorized under this chapter. This authorization does not limit the department from obtaining and installing the propulsion system, or any component of it, as incidental to the overall vessel construction contract authorized
under RCW 47.60.770 through 47.60.778, nor from proceeding to complete an existing contract for acquisition of the propulsion system or any component of it.
(2) Acquisition of a propulsion system, or any component of it, for the Jumbo Class Mark II ferries by the department under this section is exempt from chapter 43.19 RCW.
(3) Whenever the department decides to enter into an
acquisition contract under this section it shall publish a notice
of its intent to negotiate such a contract once a week for at
least two consecutive weeks in one trade newspaper and one
other newspaper, both of general circulation in the state. The
notice must contain, but is not limited to, the following information:
(a) The identity of the propulsion system or components
to be acquired and the proposed delivery dates for the propulsion system or components;
(b) An address and telephone number that may be used
to obtain the request for proposal.
(4) The department shall send to any firm that requests it,
a request for proposal outlining the design and construction
requirements for the propulsion system, including any
desired components. The request for proposal must include,
but is not limited to, the following information:
(a) The proposed delivery date for each propulsion system or desired component and the location where delivery
will be taken;
(b) The form and formula for contract security;
(c) A copy of the proposed contract;
(d) The date by which proposals must be received by the
department in order to be considered; and
47.60.780
[Title 47 RCW—page 212]
(e) A statement that any proposal submitted constitutes
an offer and must remain open until ninety days after the
deadline for submitting proposals, together with an explanation of the requirement that all proposals submitted must be
accompanied by a deposit in the amount of five percent of the
proposed cost.
(5) The department shall evaluate all timely proposals
received for: (a) Compliance with the requirements specified
in the request for proposal; and (b) suitability of each firm's
proposal by applying appropriate criteria to be developed by
the department: (i) To assess the ability of the firm to expeditiously and satisfactorily perform and (ii) to accomplish an
acquisition that is most advantageous to the department. A
portion of the technical requirements addressed in the request
for proposal shall include, but is not limited to, user verifications of manufacturer's reliability claims; the quality of
engine maintenance documentation; and engine compatibility with ship design.
(6) The criteria to select the most advantageous diesel
engine under subsection (5)(b)(ii) shall consist of life-cycle
cost factors weighted at forty-five percent; and operational
factors weighted as follows: Reliability at twenty percent,
maintainability at twenty percent, and engine performance at
fifteen percent. For purposes of this subsection, the life-cycle
cost factors shall consist of the costs for engine acquisition
and warranty, spare parts acquisition and inventory, fuel efficiency and lubricating oil consumption, and commonality.
The fuel efficiency and lubricating oil consumption life-cycle
cost factors shall receive not less than twenty percent of the
total evaluation weighting and shall be evaluated under a format similar to that employed in the 1992 M.V. Tyee engine
replacement contract. The reliability factors shall consist of
the length of service and reliability record in comparable
uses, and mean time between overhauls. The mean time
between overhauls evaluation shall be based upon the manufacturer's required hours between change of wear components. The maintainability factors shall consist of spare parts
availability, the usual time anticipated to perform typical
repair functions, and the quality of factory training programs
for ferry system maintenance staff. The performance factors
shall consist of load change responsiveness, and air quality of
exhaust and engine room emissions.
(7) Upon concluding its evaluation, the department shall:
(a) Select the firm presenting the proposal most advantageous to the department, taking into consideration compliance with the requirements stated in the request for proposal,
and the criteria developed by the department, and rank the
remaining firms in order of preference, judging them by the
same standards; or
(b) Reject all proposals as not in compliance with the
requirements contained in the request for proposals.
(8) The department shall immediately notify those firms
that were not selected as the firm presenting the most advantageous proposal of the department's decision. The department's decision is conclusive unless an aggrieved firm
appeals the decision to the superior court of Thurston county
within five days after receiving notice of the department's
final decision. The appeal shall be heard summarily within
ten days after it is taken and on five days' notice to the department. The court shall hear the appeal on the administrative
record that was before the department. The court may affirm
(2004 Ed.)
Puget Sound Ferry and Toll Bridge System
the decision of the department, or it may reverse the decision
if it determines the action of the department is arbitrary or
capricious.
(9) Upon selecting the firm that has presented the most
advantageous proposal and ranking the remaining firms in
order of preference, the department shall:
(a) Negotiate a contract with the firm presenting the most
advantageous proposal; or
(b) If a final agreement satisfactory to the department
cannot be negotiated with the firm presenting the most
advantageous proposal, the department may then negotiate
with the firm ranked next highest in order of preference. If
necessary, the department may repeat this procedure and
negotiate with each firm in order of rank until the list of firms
has been exhausted.
(10) Proposals submitted by firms under this section constitute an offer and must remain open for ninety days. When
submitted, each proposal must be accompanied by a deposit
in cash, certified check, cashier's check, or surety bond in the
amount equal to five percent of the amount of the proposed
contract price, and the department may not consider a proposal that has no deposit enclosed with it. If the department
awards a contract to a firm under the procedure set forth in
this section and the firm fails to enter into the contract and
furnish the required contract security within twenty days,
exclusive of the day of the award, its deposit shall be forfeited
to the state and deposited by the state treasurer to the credit of
the Puget Sound capital construction account. Upon the execution of a contract all proposal deposits shall be returned.
[1994 c 181 § 2.]
Finding and intent—1994 c 181: "The legislature finds and declares
that:
A 1991 legislative study, conducted by Booz. Allen, Hamilton and M.
Rosenblatt and Son, examining the Washington state ferries' management of
its vessel refurbishment and construction program, resulted in recommendations for improvements and changes in the vessel refurbishment and construction program. These legislatively adopted recommendations encourage
and support input by Washington state ferries' engineers in the development
of refurbishment and new construction project requirements.
The recommendations of the Booz. Allen study have been applied to
the construction of the Jumbo Class Mark II ferries through the appointment
of a Jumbo Class Mark II steering committee comprised of current state ferry
engineers responsible for the design, operation, and maintenance of state
ferry vessels.
The steering committee, in carrying out the recommendations of the
Booz. Allen study, has determined that the procedure for the procurement of
equipment, parts, and supplies for the Jumbo Class Mark II ferry vessels
authorized by RCW 47.60.770 through 47.60.778, must take into consideration, in addition to life-cycle cost criteria, criteria that are essential to the
operation of a public mass transportation system responsive to the needs of
Washington state ferries' users, and that assess the reliability, maintainability, and performance of equipment, parts, and supplies to be installed in the
Jumbo Mark II ferries.
The construction of the new Jumbo Class Mark II ferry vessels authorized by RCW 47.60.770 through 47.60.778 is critical to the welfare of the
state and any delay in the immediate construction of the ferries will result in
severe hardship and economic loss to the state and its citizens. Recognizing
these findings, it is the intent of the legislature that the vessel construction
should not be delayed further because of the acquisition of a propulsion system, or any component of it, for the ferries, and to authorize the department
of transportation to acquire all components of a complete propulsion system
as soon as possible so that planned construction of the Jumbo Class Mark II
ferry vessels can proceed immediately.
The purpose of this chapter is to authorize the use, by the department,
of supplemental, alternative contracting procedures for the procurement of a
propulsion system, and the components thereof, for the Jumbo Class Mark II
ferries; and to prescribe appropriate requirements and criteria to ensure that
(2004 Ed.)
47.60.806
contracting procedures for such procurement serve the public interest."
[1994 c 181 § 1.]
Effective date—1994 c 181: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[March 30, 1994]." [1994 c 181 § 4.]
47.60.800
47.60.800 General obligation bonds—1992 issue—
Purpose—Issuance and sale. In order to provide funds necessary for vessel and terminal acquisition, construction, and
major and minor improvements, including long lead time
materials acquisition for the Washington state ferries, there
shall be issued and sold upon the request of the Washington
state transportation commission and legislative appropriation
a total of two hundred ten million dollars of general obligation bonds of the state of Washington. [1992 c 158 § 1.]
47.60.802
47.60.802 Bonds—1992 issue—Supervision of sale by
state finance committee—Option of short-term obligations. (1) Upon request being made by the transportation
commission, the state finance committee shall supervise and
provide for the issuance, sale, and retirement of the bonds
authorized by RCW 47.60.800 through 47.60.808 in accordance with chapter 39.42 RCW. The bonds may be sold from
time to time in such amounts as may be necessary for the purposes under RCW 47.60.800. The bonds shall be sold in such
manner, at such time or times, in such amounts, and at such
price or prices as the state finance committee shall determine.
No such bonds may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds.
(2) The state finance committee shall consider the issuance of short-term obligations in lieu of long-term obligations for the purposes of more favorable interest rates, lower
total interest costs, and increased marketability and for the
purposes of retiring the bonds during the life of the project for
which they were issued. [1992 c 158 § 2.]
47.60.804
47.60.804 Bonds—1992 issue—Use of proceeds. The
proceeds from the sale of bonds authorized by RCW
47.60.800 through 47.60.808 shall be deposited in the Puget
Sound capital construction account of the motor vehicle fund
and such proceeds shall be available only for the purposes
under RCW 47.60.800, for the payment of bond anticipation
notes, if any, and for the payment of bond issuance costs,
including the costs of underwriting. [1992 c 158 § 3.]
47.60.806
47.60.806 Bonds—1992 issue—Payment of principal
and interest from pledged excise taxes. Bonds issued under
the authority of RCW 47.60.800 through 47.60.808 shall distinctly state that they are a general obligation of the state of
Washington, shall pledge the full faith and credit of the state
to the payment of the principal thereof and the interest
thereon, and shall contain an unconditional promise to pay
such principal and interest as the same shall become due. The
principal and interest shall be first payable in the manner provided in RCW 47.60.800 through 47.60.808 from the proceeds of the state excise taxes on motor vehicle and special
fuels imposed by chapters 82.36 and 82.38 RCW and distributed to the state pursuant to RCW 46.68.130 and shall never
constitute a charge against any allocations of such funds to
counties, cities, and towns unless and until the amount of the
[Title 47 RCW—page 213]
47.60.808
Title 47 RCW: Public Highways and Transportation
motor vehicle fund arising from the excise taxes on motor
vehicle and special fuels and available for state highway purposes proves insufficient to meet the requirements for bond
retirement or interest on any such bonds. Proceeds of such
excise taxes are hereby pledged to the payment of any bonds
and the interest thereon issued under the authority of RCW
47.60.800 through 47.60.808, and the legislature agrees to
continue to impose these excise taxes on motor vehicle and
special fuels in amounts sufficient to pay, when due, the principal and interest on all bonds issued under the authority of
RCW 47.60.800 through 47.60.808. [1995 c 274 § 19; 1992
c 158 § 4.]
47.60.808
47.60.808 Bonds—1992 issue—Payment from ferry
bond retirement fund. Both principal and interest on the
bonds issued for the purposes of RCW 47.60.800 through
47.60.808 shall be payable from the ferry bond retirement
fund authorized in RCW 47.60.600. Whenever, pursuant to
RCW 47.60.800 and 47.60.806, the state treasurer transfers
funds from the motor vehicle fund to the ferry bond retirement fund, the state treasurer may at the same time reimburse
the motor vehicle fund in an identical amount from the Puget
Sound capital construction account. [1992 c 158 § 5.]
47.60.810
47.60.810 Design-build ferries—Authorized—Phases
defined. (1) The department may purchase new auto ferries
through use of a modified request for proposals process
whereby the prevailing shipbuilder and the department
engage in a design and build partnership for the design and
construction of the auto ferries. The process consists of the
three phases described in subsection (2) of this section.
(2) The definitions in this subsection apply throughout
RCW 47.60.812 through 47.60.822.
(a) "Phase one" means the evaluation and selection of
proposers to participate in development of technical proposals in phase two.
(b) "Phase two" means the preparation of technical proposals by the selected proposers in consultation with the
department.
(c) "Phase three" means the submittal and evaluation of
bids, the award of the contract to the successful proposer, and
the design and construction of the auto ferries. [2001 c 226 §
4.]
Findings—Purpose—2001 c 226: See note following RCW
47.20.780.
47.60.812
47.60.812 Design-build ferries—Notice of request for
proposals. To commence the request for proposals process,
the department shall publish a notice of its intent once a week
for at least two consecutive weeks in at least one trade paper
and one other paper, both of general circulation in the state.
The notice must contain, but is not limited to, the following
information:
(1) The number of auto ferries to be procured, the auto
and passenger capacities, the delivery dates, and the estimated price range for the contract;
(2) A statement that a modified request for proposals
design and build partnership will be used in the procurement
process;
[Title 47 RCW—page 214]
(3) A short summary of the requirements for prequalification of proposers including a statement that prequalification is a prerequisite to submittal of a proposal in phase one;
and
(4) An address and telephone number that may be used
to obtain a prequalification questionnaire and the request for
proposals. [2001 c 226 § 5.]
Findings—Purpose—2001 c 226: See note following RCW
47.20.780.
47.60.814
47.60.814 Design-build ferries—Issuance of request
for proposals. Subject to legislative appropriation for the
procurement of vessels, the department shall issue a request
for proposals to interested parties that must include, at least,
the following:
(1) Solicitation of a proposal to participate in a design
and build partnership with the department to design and construct the auto ferries;
(2) Instructions on the prequalification process and procedures;
(3) A description of the modified request for proposals
process. Under this process, the department may modify any
component of the request for proposals, including the outline
specifications, by addendum at any time before the submittal
of bids in phase three;
(4) A description of the design and build partnership process to be used for procurement of the vessels;
(5) Outline specifications that provide the requirements
for the vessels including, but not limited to, items such as
length, beam, displacement, speed, propulsion requirements,
capacities for autos and passengers, passenger space characteristics, and crew size. The department will produce notional
line drawings depicting hull geometry that will interface with
Washington state ferries terminal facilities. Notional lines
may be modified in phase two, subject to approval by the
department;
(6) Instructions for the development of technical proposals in phase two, and information regarding confidentiality of
technical proposals;
(7) The vessel delivery schedule, identification of the
port on Puget Sound where delivery must take place, and the
location where acceptance trials must be held;
(8) The estimated price range for the contract;
(9) The form and amount of the required bid deposit and
contract security;
(10) A copy of the contract that will be signed by the successful proposer;
(11) The date by which proposals in phase one must be
received by the department in order to be considered;
(12) A description of information to be submitted in the
proposals in phase one concerning each proposer's qualifications, capabilities, and experience;
(13) A statement of the maximum number of proposers
that may be selected in phase one for development of technical proposals in phase two;
(14) Criteria that will be used for the phase one selection
of proposers to participate in the phase two development of
technical proposals;
(15) A description of the process that will be used for the
phase three submittal and evaluation of bids, award of the
contract, and postaward administrative activities;
(2004 Ed.)
Puget Sound Ferry and Toll Bridge System
(16) A requirement that the contractor comply with all
applicable laws, rules, and regulations including but not limited to those pertaining to the environment, worker health and
safety, and prevailing wages;
(17) A requirement that the vessels be constructed within
the boundaries of the state of Washington except that equipment furnished by the state and components, products, and
systems that are standard manufactured items are not subject
to the in-state requirement under this subsection. For the purposes of this subsection, "constructed" means the fabrication,
by the joining together by welding or fastening of all steel
parts from which the total vessel is constructed, including,
but not limited to, all shell frames, longitudinals, bulkheads,
webs, piping runs, wire ways, and ducting. "Constructed"
also means the installation of all components and systems,
including, but not limited to, equipment and machinery, castings, electrical, electronics, deck covering, lining, paint, and
joiner work required by the contract. "Constructed" also
means the interconnection of all equipment, machinery, and
services, such as piping, wiring, and ducting; and
(18) A requirement that all warranty work on the vessel
must be performed within the boundaries of the state of
Washington, insofar as practical. [2001 c 226 § 6.]
Findings—Purpose—2001 c 226: See note following RCW
47.20.780.
47.60.816
47.60.816 Design-build ferries—Phase one. Phase
one of the request for proposals process consists of evaluation and selection of prequalified proposers to participate in
subsequent development of technical proposals in phase two,
as follows:
(1) The department shall issue a request for proposals to
interested parties.
(2) The request for proposals must require that each proposer prequalify for the contract under chapter 468-310
WAC, except that the department may adopt rules for the
financial prequalification of proposers for this specific contract only. The department shall modify the financial prequalification rules in chapter 468-310 WAC in order to maximize
competition among financially capable and otherwise qualified proposers. In adopting these rules, the department shall
consider factors including, without limitation: (a) Shipyard
resources in Washington state; (b) the cost to design and construct multiple vessels under a single contract without
options; and (c) the sequenced delivery schedule for the vessels.
(3) The department may use some, or all, of the nonfinancial prequalification factors as part of the evaluation factors in phase one to enable the department to select a limited
number of best qualified proposers to participate in development of technical proposals in phase two.
(4) The department shall evaluate submitted proposals in
accordance with the selection criteria established in the
request for proposals. Selection criteria may include, but are
not limited to, the following:
(a) Shipyard facilities;
(b) Organization components;
(c) Design capability;
(d) Build strategy;
(e) Experience and past performance;
(f) Ability to meet vessel delivery dates;
(2004 Ed.)
47.60.820
(g) Projected workload; and
(h) Expertise of project team and other key personnel.
(5) Upon concluding its evaluation of proposals, the
department shall select the best qualified proposers in accordance with the request for proposals. The selected proposers
must participate in development of technical proposals.
Selection must be made in accordance with the selection criteria stated in the request for proposals. All proposers must be
ranked in order of preference as derived from the same selection criteria. [2001 c 226 § 7.]
Findings—Purpose—2001 c 226: See note following RCW
47.20.780.
47.60.818 Design-build ferries—Phase two. Phase
two of the request for proposals process consists of preparation of technical proposals in consultation with the department, as follows:
(1) The development of technical proposals in compliance with the detailed instructions provided in the request for
proposals, including the outline specifications, and any
addenda to them. Technical proposals must include the following:
(a) Design and specifications sufficient to fully depict
the ferries' characteristics and identify installed equipment;
(b) Drawings showing arrangements of equipment and
details necessary for the proposer to develop a firm, fixed
price bid;
(c) Project schedule including vessel delivery dates; and
(d) Other appropriate items.
(2) The department shall conduct periodic reviews with
each of the selected proposers to consider and critique their
designs, drawings, and specifications. These reviews must be
held to ensure that technical proposals meet the department's
requirements and are responsive to the critiques conducted by
the department during the development of technical proposals.
(3) If, as a result of the periodic technical reviews or otherwise, the department determines that it is in the best interests of the department to modify any element of the request
for proposals, including the outline specifications, it shall do
so by written addenda to the request for proposals.
(4) Proposers must submit final technical proposals for
approval that include design, drawings, and specifications at
a sufficient level of detail to fully depict the ferries' characteristics and identify installed equipment, and to enable a proposer to deliver a firm, fixed price bid to the department. The
department shall reject final technical proposals that modify,
fail to conform to, or are not fully responsive to and in compliance with the requirements of the request for proposals,
including the outline specifications, as amended by addenda.
[2001 c 226 § 8.]
47.60.818
Findings—Purpose—2001 c 226: See note following RCW
47.20.780.
47.60.820
47.60.820 Design-build ferries—Phase three. Phase
three consists of the submittal and evaluation of bids and the
award of the contract to the successful proposer for the final
design and construction of the auto ferries, as follows:
(1) The department shall request bids for detailed design
and construction of the vessels after completion of the review
of technical proposals in phase two. The department will
[Title 47 RCW—page 215]
47.60.822
Title 47 RCW: Public Highways and Transportation
review detailed design drawings in phase three for conformity with the technical proposals submitted in phase two. In
no case may the department's review replace the builder's
responsibility to deliver a product meeting the phase two
technical proposal. The department may only consider bids
from selected proposers that have qualified to bid by submitting technical proposals that have been approved by the
department.
(2) Each qualified proposer must submit its total bid
price for all vessels, including certification that the bid is
based upon its approved technical proposal and the request
for proposals.
(3) Bids constitute an offer and remain open for ninety
days from the date of the bid opening. A deposit in cash, certified check, cashier's check, or surety bond in an amount
specified in the request for proposals must accompany each
bid and no bid may be considered unless the deposit is
enclosed.
(4) The department shall evaluate the submitted bids.
Upon completing the bid evaluation, the department may
select the responsive and responsible proposer that offers the
lowest total bid price for all vessels.
(5) The department may waive informalities in the proposal and bid process, accept a bid from the lowest responsive and responsible proposer, reject any or all bids, republish, and revise or cancel the request for proposals to serve the
best interests of the department.
(6) The department may:
(a) Award the contract to the proposer that has been
selected as the responsive and responsible proposer that has
submitted the lowest total bid price;
(b) If a contract cannot be signed with the apparent successful proposer, award the contract to the next lowest
responsive and responsible proposer; or
(c) If necessary, repeat this procedure with each responsive and responsible proposer in order of rank until the list of
those proposers has been exhausted.
(7) If the department awards a contract to a proposer
under this section, and the proposer fails to enter into the contract and furnish satisfactory contract security as required by
chapter 39.08 RCW within twenty days from the date of
award, its deposit is forfeited to the state and will be deposited by the state treasurer to the credit of the Puget Sound capital construction account. Upon the execution of a ferry
design and construction contract all proposal deposits will be
returned.
(8) The department may provide an honorarium to reimburse each unsuccessful phase three proposer for a portion of
its technical proposal preparation costs at a preset, fixed
amount to be specified in the request for proposals. If the
department rejects all bids, the department may provide the
honoraria to all phase three proposers that submitted bids.
[2001 c 226 § 9.]
Findings—Purpose—2001 c 226: See note following RCW
47.20.780.
47.60.822
47.60.822 Design-build ferries—Notice to proposers
not selected—Appeal. (1) The department shall immediately notify those proposers that are not selected to participate in development of technical proposals in phase one and
those proposers who submit unsuccessful bids in phase three.
[Title 47 RCW—page 216]
(2) The department's decision is conclusive unless an
aggrieved proposer files an appeal with the superior court of
Thurston county within five days after receiving notice of the
department's award decision. The court shall hear any such
appeal on the department's administrative record for the
project. The court may affirm the decision of the department,
or it may reverse or remand the administrative decision if it
determines the action of the department was arbitrary and
capricious. [2001 c 226 § 10.]
Findings—Purpose—2001 c 226: See note following RCW
47.20.780.
Chapter 47.61 RCW
ACQUISITION OF NEW FERRY VESSELS UNDER
URBAN MASS TRANSPORTATION ACT OF 1964
Chapter 47.61
Sections
47.61.010
47.61.020
47.61.030
47.61.040
47.61.050
47.61.060
47.61.070
47.61.080
47.61.090
47.61.100
47.61.110
Authority to enter into agreement and apply for financial assistance.
Bonds for matching funds—Issuance and sale.
Term of bonds—Terms and conditions.
Bonds—Signatures—Registration—Where payable—Negotiable instruments.
Bonds—Denominations—Manner and terms of sale—Legal
investment for state funds.
Proceeds of bonds—Deposit and use.
Statement describing nature of bond obligation—Pledge of
excise taxes.
Bonds to reflect terms and conditions of grant agreement.
Designation of funds to repay bonds and interest.
Bond repayment procedure—Highway bond retirement fund.
Sums in excess of bond retirement requirements—Use.
47.61.010
47.61.010 Authority to enter into agreement and
apply for financial assistance. Recognizing that the Washington state ferries system is an integral part of the state highway system, the department is authorized to enter into an
agreement with the administrator of the housing and home
finance agency and to make application for a grant for financial assistance for the acquisition by construction or purchase
of new vessels pursuant to the provisions of the Urban Mass
Transportation Act of 1964. [1984 c 7 § 338; 1965 ex.s. c 56
§ 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.61.020
47.61.020 Bonds for matching funds—Issuance and
sale. In order to provide necessary state matching funds as
required by the Urban Mass Transportation Act of 1964,
there shall be issued and sold limited obligation bonds of the
state of Washington in the sum of eleven million dollars, or
such amount thereof and at such times as determined to be
necessary by the state highway commission. No bonds shall
be issued under the provisions of this chapter until the administrator of the housing and home finance agency has
approved a grant to the Washington state highway commission of not less than fifty percent of the cost of acquisition of
vessels referred to in RCW 47.61.010. The issuance, sale and
retirement of said bonds shall be under the supervision and
control of the state finance committee which, upon request
being made by the Washington state highway commission,
shall provide for the issuance, sale and retirement of coupon
or registered bonds to be dated, issued, and sold from time to
time in such amounts as may be necessary for the orderly
progress of said project. [1965 ex.s. c 56 § 2.]
(2004 Ed.)
Acquisition of New Ferry Vessels Under Urban Mass Transportation Act of 1964
Reviser's note: Powers, duties, and functions of highway commission
transferred to department of transportation; see RCW 47.01.031. Term
"Washington state highway commission" means department of transportation; see RCW 47.04.015.
47.61.030
47.61.030 Term of bonds—Terms and conditions.
Each of such bonds shall be made payable at any time not
exceeding twenty-five years from the time of its issuance,
with such reserved rights of prior redemption, bearing such
interest, and such terms and conditions, as the state finance
committee may prescribe to be specified therein. [1965 ex.s.
c 56 § 3.]
47.61.040
47.61.040 Bonds—Signatures—Registration—
Where payable—Negotiable instruments. The bonds shall
be signed by the governor and the state treasurer under the
seal of the state, one of which signatures shall be made manually and the other signature may be in printed facsimile, and
any coupons attached to such bonds shall be signed by the
same officers whose signatures thereon may be in printed facsimile. Any bonds may be registered in the name of the
holder on presentation to the state treasurer or at the fiscal
agency of the state of Washington in New York City, as to
principal alone, or as to both principal and interest under such
regulations as the state treasurer may prescribe. Such bonds
shall be payable at such places as the state finance committee
may provide. All bonds issued hereunder shall be fully negotiable instruments. [1965 ex.s. c 56 § 4.]
47.61.110
motor vehicle fuels in amounts sufficient to pay, when due,
the principal and interest on all bonds issued under the provisions of this chapter. [1965 ex.s. c 56 § 7.]
*Reviser's note: Chapter 82.40 RCW was repealed by 1971 ex.s. c 175
§ 33, effective January 1, 1972.
47.61.080
47.61.080 Bonds to reflect terms and conditions of
grant agreement. Bonds issued under the provisions of
RCW 47.61.020 shall fully reflect the terms and conditions of
the grant agreement to be executed pursuant to the provisions
of RCW 47.61.010. [1965 ex.s. c 56 § 8.]
47.61.090
47.61.090 Designation of funds to repay bonds and
interest. Funds required to repay the bonds, or the interest
thereon when due, shall be taken from that portion of the
motor vehicle fund which results from the imposition of
excise taxes on motor vehicle fuels and which is, or may be
appropriated to the department for state highway purposes,
and shall never constitute a charge against any allocations of
the funds to counties, cities, and towns unless and until the
amount of the motor vehicle fund arising from the excise
taxes on motor vehicle fuels and available for state highway
purposes proves insufficient to meet the requirements for
bond retirement or interest on the bonds. [1984 c 7 § 339;
1965 ex.s. c 56 § 9.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.61.100
47.61.050
47.61.050 Bonds—Denominations—Manner and
terms of sale—Legal investment for state funds. The
bonds issued hereunder shall be in denominations to be prescribed by the state finance committee and may be sold in
such manner and in such amounts and at such times and on
such terms and conditions as the committee may prescribe. If
bonds are sold to any purchaser other than the state of Washington, they shall be sold at public sale, and it shall be the
duty of the state finance committee to cause such sale to be
advertised in such manner as it shall deem sufficient. Bonds
issued under the provisions of this chapter shall be legal
investment for any of the funds of the state, except the permanent school fund. [1965 ex.s. c 56 § 5.]
47.61.060
47.61.060 Proceeds of bonds—Deposit and use. The
money arising from the sale of said bonds shall be deposited
in the state treasury to the credit of the motor vehicle fund and
such money shall be available only for the acquisition by construction or purchase of new ferry vessels and for the payment of all expense incurred in the drafting, printing, issuance, and sale of any such bonds. [1965 ex.s. c 56 § 6.]
47.61.070
47.61.070 Statement describing nature of bond obligation—Pledge of excise taxes. Bonds issued under the provisions of this chapter shall distinctly state that they are not a
general obligation of the state but are payable in the manner
provided in this chapter from the proceeds of state excise
taxes on motor vehicle fuels imposed by chapters 82.36 and
*82.40 RCW. The proceeds of such excise taxes are hereby
pledged to the payment of any bonds and the interest thereon
issued under the provisions of this chapter, and the legislature
hereby agrees to continue to impose the same excise taxes on
(2004 Ed.)
47.61.100 Bond repayment procedure—Highway
bond retirement fund. At least one year prior to the date
any interest is due and payable on such bonds or before the
maturity date of any bonds, the state finance committee shall
estimate the percentage of the receipts in money of the motor
vehicle fund, resulting from collection of excise taxes on
motor vehicle fuels, for each month of the year which will be
required to meet interest or bond payments under the provisions of this chapter when due, and shall notify the state treasurer of such estimated requirement. The state treasurer shall
thereafter from time to time each month as such funds are
paid into the motor vehicle fund, transfer such percentage of
the monthly receipts from excise taxes on motor vehicle fuels
of the motor vehicle fund to the highway bond retirement
fund, and which fund shall be available solely for payment of
such interest or bonds when due. If in any month it shall
appear that the estimated percentage of money so made is
insufficient to meet the requirements for interest or bond
retirement, the treasurer shall notify the state finance committee forthwith and such committee shall adjust its estimates so
that all requirements for interest and principal of all bonds
issued shall be fully met at all times. [1965 ex.s. c 56 § 10.]
47.61.110
47.61.110 Sums in excess of bond retirement requirements—Use. Whenever the percentage of the motor vehicle
fund arising from excise taxes on motor vehicle fuels, payable into the highway bond retirement fund, shall prove more
than is required for the payment of interest on bonds when
due, or current retirement of bonds, or in the event there is
appropriated from time to time additional amounts to be
placed in the said bond retirement fund, any excess may, in
the discretion of the state finance committee, be available for
the prior redemption of any bonds or remain available in the
[Title 47 RCW—page 217]
Chapter 47.64
Title 47 RCW: Public Highways and Transportation
fund to reduce the requirements upon the fuel excise tax portion of the motor vehicle fund at the next interest or bond payment period. [1965 ex.s. c 56 § 11.]
Chapter 47.64
Chapter 47.64 RCW
MARINE EMPLOYEES—PUBLIC
EMPLOYMENT RELATIONS
Sections
47.64.005
47.64.006
47.64.011
47.64.060
47.64.070
47.64.080
47.64.090
47.64.090
47.64.120
47.64.130
47.64.140
47.64.150
47.64.160
47.64.170
47.64.180
47.64.190
47.64.200
47.64.210
47.64.220
47.64.230
47.64.240
47.64.250
47.64.260
47.64.270
47.64.280
47.64.290
47.64.900
47.64.910
Declaration of policy.
Public policy.
Definitions.
Federal social security—State employees' retirement.
Employees subject to industrial insurance laws.
Employee seniority rights.
Other party operating ferry by rent, lease, or charter—Passenger-only ferry service (as amended by 2003 c 91).
Other party operating ferry by rent, lease, or charter (as
amended by 2003 c 373).
Scope of negotiations—Interest on retroactive compensation
increases.
Unfair labor practices for employer, employee organization.
Strikes, work stoppages, and lockouts prohibited.
Grievance procedures.
Union security provisions.
Collective bargaining procedures.
Agreements and awards limited by appropriation.
Marine employees' commission review for compliance with
fiscal limitations—Effective date of agreements and arbitration orders.
Impasse procedures.
Mediation.
Salary survey, fact-finding.
Waiver of mediation and fact-finding.
Binding arbitration.
Legal actions.
Notice and service.
Insurance and health care.
Marine employees' commission.
Toll bridge employees subject to civil service.
Section captions not part of law—1983 c 15.
Severability—1983 c 15.
47.64.005
47.64.005 Declaration of policy. The state of Washington, as a public policy, declares that sound labor relations are
essential to the development of a ferry and bridge system
which will best serve the interests of the people of the state.
[1961 c 13 § 47.64.005. Prior: 1949 c 148 § 1; Rem. Supp.
1949 § 6524-22.]
47.64.006
47.64.006 Public policy. The legislature declares that it
is the public policy of the state of Washington to: (1) Provide
continuous operation of the Washington state ferry system at
reasonable cost to users; (2) efficiently provide levels of ferry
service consistent with trends and forecasts of ferry usage; (3)
promote harmonious and cooperative relationships between
the ferry system and its employees by permitting ferry
employees to organize and bargain collectively; (4) protect
the citizens of this state by assuring effective and orderly
operation of the ferry system in providing for their health,
safety, and welfare; (5) prohibit and prevent all strikes or
work stoppages by ferry employees; (6) protect the rights of
ferry employees with respect to employee organizations; and
(7) promote just and fair compensation, benefits, and working conditions for ferry system employees as compared with
public and private sector employees in states along the west
coast of the United States, including Alaska, and in British
Columbia in directly comparable but not necessarily identical
positions. [1989 c 327 § 1; 1983 c 15 § 1.]
[Title 47 RCW—page 218]
47.64.011
47.64.011 Definitions. As used in this chapter, unless
the context otherwise requires, the definitions in this section
shall apply.
(1) "Arbitration" means the procedure whereby the parties involved in an impasse submit their differences to a third
party for a final and binding decision or as provided in this
chapter.
(2) "Arbitrator" means either a single arbitrator or a
panel of three arbitrators as provided in RCW 47.64.240.
(3) "Collective bargaining representative" means the
persons designated by the secretary of transportation and
employee organizations to be the exclusive representatives
during collective bargaining negotiations.
(4) "Department of transportation" means the department as defined in RCW 47.01.021.
(5) "Ferry employee" means any employee of the marine
transportation division of the department of transportation
who is a member of a collective bargaining unit represented
by a ferry employee organization and does not include an
exempt employee pursuant to RCW 41.06.079.
(6) "Ferry employee organization" means any labor
organization recognized to represent a collective bargaining
unit of ferry employees.
(7) "Ferry system management" means those management personnel of the marine transportation division of the
department of transportation who have been vested with the
day-to-day management responsibilities of the Washington
state ferry system by the transportation commission and who
are not members of a collective bargaining unit represented
by a ferry employee organization.
(8) "Lockout" means the refusal of ferry system management to furnish work to ferry employees in an effort to get
ferry employee organizations to make concessions during
collective bargaining, grievance, or other labor relation negotiations. Curtailment of employment of ferry employees due
to lack of work resulting from a strike or work stoppage, as
defined in subsection (11) of this section, shall not be considered a lockout.
(9) "Marine employees' commission" means the commission created in RCW 47.64.280.
(10) "Office of financial management" means the office
as created in RCW 43.41.050.
(11) "Strike or work stoppage" means a ferry employee's
refusal, in concerted action with others, to report to duty, or
his or her wilful absence from his or her position, or his or her
stoppage or slowdown of work, or his or her abstinence in
whole or in part from the full, faithful, and proper performance of the duties of employment, for the purpose of inducing, influencing, or coercing a change in conditions, compensation, rights, privileges, or obligations of his, her, or any
other ferry employee's employment. A refusal, in good faith,
to work under conditions which pose an endangerment to the
health and safety of ferry employees or the public, as determined by the master of the vessel, shall not be considered a
strike for the purposes of this chapter.
(12) "Transportation commission" means the commission as defined in RCW 47.01.021. [1983 c 15 § 2.]
47.64.060
47.64.060 Federal social security—State employees'
retirement. All employees engaged in the operation of ferries acquired by the department shall remain subject to the
(2004 Ed.)
Marine Employees—Public Employment Relations
federal social security act and shall be under the state
employees' retirement act. The department shall make such
deductions from salaries of employees and contributions
from revenues of the department as shall be necessary to
qualify the employees for benefits under the federal social
security act. The appropriate officials are authorized to contract with the secretary of health, education and welfare to
effect the coverage. [1984 c 7 § 340; 1961 c 13 § 47.64.060.
Prior: 1957 c 271 § 7; 1951 c 82 § 2; 1949 c 148 § 5; Rem.
Supp. 1949 § 6524-26.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.64.070
47.64.070 Employees subject to industrial insurance
laws. Employees, except the masters and members of the
crews of vessels, shall be subject to and entitled to the benefits of the industrial insurance laws of the state, and are
hereby declared to be in extrahazardous employment within
the meaning of such laws. [1961 c 13 § 47.64.070. Prior:
1951 c 259 § 2; 1949 c 148 § 6; Rem. Supp. 1949 § 6524-27.]
47.64.080
47.64.080 Employee seniority rights. Employees
employed at the time of the acquisition of any ferry or ferry
system by the department have seniority rights to the position
they occupy aboard the ferries or ferry system. In the event of
curtailment of ferry operations for any reason, employees
shall be relieved of service on the basis of their duration of
employment in any ferry or ferry system acquired by the
department. [1984 c 7 § 341; 1961 c 13 § 47.64.080. Prior:
1949 c 148 § 7; Rem. Supp. 1949 § 6524-28.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.64.090
47.64.090 Other party operating ferry by rent, lease, or charter—
Passenger-only ferry service (as amended by 2003 c 91). (1) Except as
provided in section 203 ((of this act)), chapter 83, Laws of 2003 and subsection (2) of this section, or as provided in section 303 ((of this act)), chapter
83, Laws of 2003 and subsection (3) of this section, if any party assumes the
operation and maintenance of any ferry or ferry system by rent, lease, or
charter from the department of transportation, such party shall assume and be
bound by all the provisions herein and any agreement or contract for such
operation of any ferry or ferry system entered into by the department shall
provide that the wages to be paid, hours of employment, working conditions,
and seniority rights of employees will be established by the marine employees' commission in accordance with the terms and provisions of this chapter
and it shall further provide that all labor disputes shall be adjudicated in
accordance with chapter 47.64 RCW.
(2) If a public transportation benefit area meeting the requirements of
section 201 ((of this act)), chapter 83, Laws of 2003 has voter approval to
operate passenger-only ferry service, it may enter into an agreement with
Washington State Ferries to rent, lease, or purchase passenger-only vessels,
related equipment, or terminal space for purposes of loading and unloading
the passenger-only ferry. Charges for the vessels, equipment, and space
must be fair market value taking into account the public benefit derived from
the ferry service. A benefit area or subcontractor of that benefit area that
qualifies under this subsection is not subject to the restrictions of subsection
(1) of this section, but is subject to:
(a) The terms of those collective bargaining agreements that it or its
subcontractors negotiate with the exclusive bargaining representatives of its
or its subcontractors' employees under chapter 41.56 RCW or the National
Labor Relations Act, as applicable;
(b) Unless otherwise prohibited by federal or state law, a requirement
that the benefit area and any contract with its subcontractors, give preferential hiring to former employees of the department of transportation who separated from employment with the department because of termination of the
ferry service by the state of Washington; and
(c) Unless otherwise prohibited by federal or state law, a requirement
that the benefit area and any contract with its subcontractors, on any questions concerning representation of employees for collective bargaining pur(2004 Ed.)
47.64.090
poses, may be determined by conducting a cross-check comparing an
employee organization's membership records or bargaining authorization
cards against the employment records of the employer.
(3) If a ferry district is formed under section 301 ((of this act)), chapter
83, Laws of 2003 to operate passenger-only ferry service, it may enter into
an agreement with Washington State Ferries to rent, lease, or purchase vessels, related equipment, or terminal space for purposes of loading and
unloading the ferry. Charges for the vessels, equipment, and space must be
fair market value taking into account the public benefit derived from the
ferry service. A ferry district or subcontractor of that district that qualifies
under this subsection is not subject to the restrictions of subsection (1) of this
section, but is subject to:
(a) ((Subject to)) The terms of those collective bargaining agreements
that it or its subcontractors negotiate with the exclusive bargaining representatives of its or its subcontractors' employees under chapter 41.56 RCW or
the National Labor Relations Act, as applicable;
(b) ((Subject to)) Unless otherwise prohibited by federal or state law, a
requirement((, to be included by)) that the ferry district ((in)) and any contract with ((the district's)) its subcontractors, ((to)) give preferential hiring to
former employees of the department of transportation who separated from
employment with the department because of termination of the ferry service
by the state of Washington; and
(c) ((Subject to)) Unless otherwise prohibited by federal or state law, a
requirement((, to be included by)) that the ferry district ((in)) and any contract with ((the district's)) its subcontractors, ((that)) on any questions concerning representation of employees for collective bargaining purposes, may
be determined by conducting a cross-check comparing an employee organization's membership records or bargaining authorization cards against the
employment records of the employer. [2003 c 91 § 1; 2003 c 83 § 205; 1983
c 15 § 27; 1961 c 13 § 47.64.090. Prior: 1949 c 148 § 8; Rem. Supp. 1949
§ 6524-29.]
Contingent effective date—2003 c 91: "Sections 1 and 2 of this act are
necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public institutions,
and take effect immediately [April 23, 2003], but only if Engrossed Substitute House Bill No. 1853 has become law. If Engrossed Substitute House
Bill No. 1853 has not become law by June 30, 2003, sections 1 and 2 of this
act are null and void." [2003 c 91 § 4.] Engrossed Substitute House Bill No.
1853 became law as 2003 c 83, effective April 23, 2003.
Findings—Intent—Captions, part headings not law—Severability—Effective date—2003 c 83: See notes following RCW 36.57A.200.
47.64.090
47.64.090 Other party operating ferry by rent, lease, or charter (as
amended by 2003 c 373). (1) Except as provided in subsection (2) of this
section, if any party assumes the operation and maintenance of any ferry or
ferry system by rent, lease, or charter from the department of transportation,
such party shall assume and be bound by all the provisions herein and any
agreement or contract for such operation of any ferry or ferry system entered
into by the department shall provide that the wages to be paid, hours of
employment, working conditions and seniority rights of employees will be
established by the marine employees' commission in accordance with the
terms and provisions of this chapter and it shall further provide that all labor
disputes shall be adjudicated in accordance with chapter 47.64 RCW.
(2) The department of transportation shall make its terminal, dock, and
pier space available to private operators of passenger-only ferries if the space
can be made available without limiting the operation of car ferries operated
by the department. These private operators are not bound by the provisions
of subsection (1) of this section. Charges for the equipment and space must
be fair market value taking into account the public benefit derived from the
passenger-only ferry service. [2003 c 373 § 3; 1983 c 15 § 27; 1961 c 13 §
47.64.090. Prior: 1949 c 148 § 8; Rem. Supp. 1949 § 6524-29.]
Reviser's note: RCW 47.64.090 was amended three times during the
2003 legislative session, twice without reference to the other. For rule of
construction concerning sections amended more than once during the same
legislative session, see RCW 1.12.025.
Findings—Intent—2003 c 373: "The legislature finds that the Washington state department of transportation should focus on its core ferry mission of moving automobiles on Washington state's marine highways. The
legislature finds that current statutes impose barriers to entities other than the
state operating passenger-only ferries. The legislature intends to lift those
barriers to allow entities other than the state to provide passenger-only ferry
service. The legislature finds that the provision of this service and the
improvement in the mobility of the citizens of Washington state is legally
adequate consideration for the use of state facilities in conjunction with the
[Title 47 RCW—page 219]
47.64.120
Title 47 RCW: Public Highways and Transportation
provision of the service, and the legislature finds that allowing the operators
of passenger-only ferries to use state facilities on the basis of legally adequate consideration does not evince donative intent on the part of the legislature." [2003 c 373 § 1.]
Severability—1983 c 15: See RCW 47.64.910.
47.64.120
47.64.120 Scope of negotiations—Interest on retroactive compensation increases. (1) Ferry system management
and ferry system employee organizations, through their collective bargaining representatives, shall meet at reasonable
times, to negotiate in good faith with respect to wages, hours,
working conditions, insurance, and health care benefits as
limited by RCW 47.64.270, and other matters mutually
agreed upon. Employer funded retirement benefits shall be
provided under the public employees retirement system
under chapter 41.40 RCW and shall not be included in the
scope of collective bargaining.
(2) Upon ratification of bargaining agreements, ferry
employees are entitled to an amount equivalent to the interest
earned on retroactive compensation increases. For purposes
of this section, the interest earned on retroactive compensation increases is the same monthly rate of interest that was
earned on the amount of the compensation increases while
held in the state treasury. The interest will be computed for
each employee until the date the retroactive compensation is
paid, and must be allocated in accordance with appropriation
authority. The interest earned on retroactive compensation is
not considered part of the ongoing compensation obligation
of the state and is not compensation earnable for the purposes
of chapter 41.40 RCW. Negotiations shall also include grievance procedures for resolving any questions arising under the
agreement, which shall be embodied in a written agreement
and signed by the parties. [1997 c 436 § 1; 1983 c 15 § 3.]
47.64.130
47.64.130 Unfair labor practices for employer,
employee organization. (1) It is an unfair labor practice for
ferry system management or its representatives:
(a) To interfere with, restrain, or coerce employees in the
exercise of the rights guaranteed by this chapter;
(b) To dominate or interfere with the formation or
administration of any employee organization or contribute
financial or other support to it: PROVIDED, That subject to
rules made by the commission pursuant to RCW 47.64.280,
an employer shall not be prohibited from permitting employees to confer with it or its representatives or agents during
working hours without loss of time or pay;
(c) To encourage or discourage membership in any
employee organization by discrimination in regard to hiring,
tenure of employment, or any term or condition of employment, but nothing contained in this subsection prevents an
employer from requiring, as a condition of continued
employment, payment of periodic dues and fees uniformly
required to an exclusive bargaining representative pursuant to
RCW 47.64.160: PROVIDED, That nothing prohibits ferry
system management from agreeing to obtain employees by
referral from a lawful hiring hall operated by or participated
in by a labor organization;
(d) To discharge or otherwise discriminate against an
employee because he has filed charges or given testimony
under this chapter;
[Title 47 RCW—page 220]
(e) To refuse to bargain collectively with the representatives of its employees.
(2) It is an unfair labor practice for an employee organization:
(a) To restrain or coerce (i) employees in the exercise of
the rights guaranteed by this chapter: PROVIDED, That this
paragraph does not impair the right of an employee organization to prescribe its own rules with respect to the acquisition
or retention of membership therein, or (ii) an employer in the
selection of his representatives for the purposes of collective
bargaining or the adjustment of grievances;
(b) To cause or attempt to cause an employer to discriminate against an employee in violation of subsection (1)(c) of
this section;
(c) To refuse to bargain collectively with an employer,
when it is the representative of its employees subject to RCW
47.64.170.
(3) The expression of any view, argument, or opinion, or
the dissemination thereof to the public, whether in written,
printed, graphic, or visual form, shall not constitute or be evidence of an unfair labor practice under any of the provisions
of this chapter, if the expression contains no threat of reprisal
or force or promise of benefit. [1983 c 15 § 4.]
47.64.140 Strikes, work stoppages, and lockouts prohibited. (1) It is unlawful for any ferry system employee or
any employee organization, directly or indirectly, to induce,
instigate, encourage, authorize, ratify, or participate in a
strike or work stoppage against the ferry system.
(2) It is unlawful for ferry system management to authorize, consent to, or condone a strike or work stoppage; or to
conduct a lockout; or to pay or agree to pay any ferry system
employee for any day in which the employee participates in a
strike or work stoppage; or to pay or agree to pay any increase
in compensation or benefits to any ferry system employee in
response to or as a result of any strike or work stoppage or
any act that violates subsection (1) of this section. It is unlawful for any official, director, or representative of the ferry system to authorize, ratify, or participate in any violation of this
subsection. Nothing in this subsection prevents new or
renewed bargaining and agreement within the scope of negotiations as defined by this chapter, at any time. No collective
bargaining agreement provision regarding suspension or
modification of any court-ordered penalty provided in this
section is binding on the courts.
(3) In the event of any violation or imminently threatened violation of subsection (1) or (2) of this section, any citizen domiciled within the jurisdictional boundaries of the
state may petition the superior court for Thurston county for
an injunction restraining the violation or imminently threatened violation. Rules of civil procedure regarding injunctions
apply to the action. However, the court shall grant a temporary injunction if it appears to the court that a violation has
occurred or is imminently threatened; the plaintiff need not
show that the violation or threatened violation would greatly
or irreparably injure him or her; and no bond may be required
of the plaintiff unless the court determines that a bond is necessary in the public interest. Failure to comply with any temporary or permanent injunction granted under this section is a
contempt of court as provided in chapter 7.21 RCW. The
court may impose a penalty of up to ten thousand dollars for
47.64.140
(2004 Ed.)
Marine Employees—Public Employment Relations
an employee organization or the ferry system, for each day
during which the failure to comply continues. The sanctions
for a ferry employee found to be in contempt shall be as provided in chapter 7.21 RCW. An individual or an employee
organization which makes an active good faith effort to comply fully with the injunction shall not be deemed to be in contempt.
(4) The right of ferry system employees to engage in
strike or work slowdown or stoppage is not granted and nothing in this chapter may be construed to grant such a right.
(5) Each of the remedies and penalties provided by this
section is separate and several, and is in addition to any other
legal or equitable remedy or penalty.
(6) In addition to the remedies and penalties provided by
this section the successful litigant is entitled to recover reasonable attorney fees and costs incurred in the litigation.
(7) Notwithstanding the provisions of chapter 88.04
RCW and chapter 88.08 RCW, the department of transportation shall promulgate rules and regulations allowing vessels,
as defined in *RCW 88.04.300, as well as other watercraft, to
engage in emergency passenger service on the waters of
Puget Sound in the event ferry employees engage in a work
slowdown or stoppage. Such emergency rules and regulations shall allow emergency passenger service on the waters
of Puget Sound within seventy-two hours following a work
slowdown or stoppage. Such rules and regulations that are
promulgated shall give due consideration to the needs and the
health, safety, and welfare of the people of the state of Washington. [1989 c 373 § 25; 1983 c 15 § 5.]
*Reviser's note: RCW 88.04.300 was repealed by 1989 c 295 § 16. For
later enactment, see RCW 88.04.015.
Severability—1989 c 373: See RCW 7.21.900.
47.64.150 Grievance procedures. An agreement with
a ferry employee organization that is the exclusive representative of ferry employees in an appropriate unit may provide
procedures for the consideration of ferry employee grievances and of disputes over the interpretation and application
of agreements. Negotiated procedures may provide for binding arbitration of ferry employee grievances and of disputes
over the interpretation and application of existing agreements. An arbitrator's decision on a grievance shall not
change or amend the terms, conditions, or applications of the
collective bargaining agreement. The procedures shall provide for the invoking of arbitration only with the approval of
the employee organization. The costs of arbitrators shall be
shared equally by the parties.
Ferry system employees shall follow either the grievance
procedures provided in a collective bargaining agreement, or
if no such procedures are so provided, shall submit the grievances to the marine employees' commission as provided in
RCW 47.64.280. [1983 c 15 § 6.]
47.64.150
47.64.160 Union security provisions. A collective bargaining agreement may include union security provisions
including an agency shop, but not a union or closed shop. If
an agency shop provision is agreed to, the employer shall
enforce it by deducting from the salary payments to members
of the bargaining unit the dues required of membership in the
bargaining representative, or, for nonmembers thereof, a fee
equivalent to such dues. All union security provisions shall
47.64.160
(2004 Ed.)
47.64.170
safeguard the right of nonassociation of employees based on
bona fide religious tenets or teachings of a church or religious
body of which such employee is a member. Such employee
shall pay an amount of money equivalent to regular dues and
fees to a nonreligious charity or to another charitable organization mutually agreed upon by the employee affected and
the bargaining representative to which such employee would
otherwise pay the dues and fees. The employee shall furnish
written proof that such payment has been made. If the
employee and the bargaining representative do not reach
agreement on such matter, the commission shall designate the
charitable organization. [1983 c 15 § 7.]
47.64.170
47.64.170 Collective bargaining procedures. (1) Any
ferry employee organization certified as the bargaining representative shall be the exclusive representative of all ferry
employees in the bargaining unit and shall represent all such
employees fairly.
(2) A ferry employee organization or organizations and
the secretary of transportation may each designate any individual as its representative to engage in collective bargaining
negotiations.
(3) Negotiating sessions, including strategy meetings of
ferry system management or employee organizations, mediation, and the deliberative process of arbitrators are exempt
from the provisions of chapter 42.30 RCW. Hearings conducted by arbitrators may be open to the public by mutual
consent of the parties. Any meeting of the transportation
commission, during which a collective bargaining agreement
is subject to ratification, shall be open to the public.
(4) Terms of any collective bargaining agreement may
be enforced by civil action in Thurston county superior court
upon the initiative of either party.
(5) Ferry system employees or any employee organization shall not negotiate or attempt to negotiate directly with a
member of the transportation commission if the commission
has appointed or authorized a bargaining representative for
the purpose of bargaining with the ferry employees or their
representative, unless the member of the commission is the
designated bargaining representative of the ferry system.
(6) The negotiation of a proposed collective bargaining
agreement by representatives of ferry system management
and a ferry employee organization shall commence in each
odd-numbered year immediately following adoption by the
legislature and approval by the governor of the biennial budget.
(7) Until a new collective bargaining agreement is negotiated, or until an award is made by the arbitrator, the terms
and conditions of the previous collective bargaining agreement shall remain in force. The wage and benefit provisions
of any collective bargaining agreement, or arbitrator's award
in lieu thereof, that is concluded after July 1st of an odd-numbered year shall be retroactive to July 1st. It is the intent of
this section that the collective bargaining agreement or arbitrator's award shall commence on July 1st of each odd-numbered year and shall terminate on June 30th of the next oddnumbered year to coincide with the ensuing biennial budget
year, as defined by RCW 43.88.020(7), to the extent practical.
(8) Any ferry union contract terminating before July 1,
1983, shall, with the agreement of the parties, remain in
[Title 47 RCW—page 221]
47.64.180
Title 47 RCW: Public Highways and Transportation
effect until a contract can be concluded under RCW
47.64.006, 47.64.011, and 47.64.120 through 47.64.280. The
contract may be retroactive to the expiration date of the prior
contract, and the cost to the department of three months retroactive compensation and benefits for this 1983 contract negotiation only shall not be included in calculating the limitation
imposed by RCW 47.64.180. If the parties cannot agree to
contract extension, any increase agreed to for the three-month
period shall be included in calculating the limit imposed by
RCW 47.64.180.
(9) Any ferry union contract which would terminate after
July 1, 1983, may, by agreement of the parties, be terminated
as of July 1, 1983, and a new contract concluded pursuant to
RCW 47.64.006, 47.64.011, and 47.64.120 through
47.64.280. Any contract terminating after July 1, 1983, is
subject to this chapter only upon its expiration and shall not
be renewed for a period beyond July 1, 1985. [1983 c 15 § 8.]
47.64.180 Agreements and awards limited by appropriation. (1) No collective bargaining agreement or arbitrator's award is valid or enforceable if its implementation
would be inconsistent with any statutory limitation on the
department of transportation's funds, spending, or budget.
The department of transportation shall, in good faith, exercise
its administrative discretion with full public participation as
required by *RCW 47.60.330, subject only to legislative limitations and conditions, to implement the terms of any collective bargaining agreement or arbitrator's award.
(2) In no event may the transportation commission or the
department of transportation authorize an increase in tolls
after the enactment of the budget that is in excess of the Seattle consumer price index for the preceding twelve months for
the purpose of providing revenue to fund a collective bargaining agreement or arbitrator's award. The commission or
the department may increase tolls after the first fiscal year of
the biennium by the amount that the Seattle consumer price
index increased after the previous toll increase. This subsection shall not be construed to prevent increases due to items
that are not labor-related and that are beyond the direct control of the department. [1983 c 15 § 9.]
47.64.180
*Reviser's note: The reference in 1983 c 15 § 9 to "section 25 of this
act" has been translated to "RCW 47.60.330." A literal translation of the session law reference would have been "RCW 47.60.326," which appears to be
erroneous. A floor amendment to Substitute Senate Bill No. 3108 added a
new section 24 to the bill and directed that internal references be corrected
accordingly. The correction was not made in the preparation of Engrossed
Substitute Senate Bill No. 3108, but has been made in codification.
47.64.190 Marine employees' commission review for
compliance with fiscal limitations—Effective date of
agreements and arbitration orders. (1) No negotiated
agreement or arbitration order may become effective and in
force until five calendar days after an agreement has been
negotiated or an arbitration order entered for each and every
ferry employee bargaining unit.
(2) Upon the conclusion of negotiations or arbitration
procedures with all ferry employee bargaining units, the secretary shall ascertain whether the cumulative fiscal requirements of all such agreements and arbitration orders are within
the limitations imposed by RCW 47.64.180.
(3) If the secretary finds that budgetary or fare restrictions will be exceeded, he shall, within five calendar days of
47.64.190
[Title 47 RCW—page 222]
completion of negotiations or arbitration with the last bargaining unit to conclude an agreement, submit all agreements
and arbitration awards to the marine employees' commission
for a binding determination whether the limitations of RCW
47.64.180 have been exceeded.
(4) The marine employees' commission shall review all
negotiated agreements and arbitration orders, and may take
written or oral testimony from the parties, regarding compliance with RCW 47.64.180. Within fifteen calendar days of
receiving the secretary's request for review, the commission
shall determine by a majority vote of its members whether or
not the cumulative effect of all such agreements and orders
exceeds the limitations of RCW 47.64.180.
(5) If the marine employees' commission determines that
the limitations of RCW 47.64.180 would be exceeded if all
agreements and arbitration orders were given full force and
effect, it shall order the minimum percentage reduction in
straight time wage provisions applied equally across the
board to all agreements or arbitration orders which will result
in compliance with RCW 47.64.180.
(6) Whenever the secretary requests a determination by
the marine employees' commission pursuant to this section,
the effect of all agreements and arbitration orders shall be
stayed, pending the commission's final determination. [1983
c 15 § 10.]
47.64.200
47.64.200 Impasse procedures. As the first step in the
performance of their duty to bargain, ferry system management and the employee organization shall endeavor to agree
upon impasse procedures. The agreement shall provide for
implementation of these impasse procedures not later than
July 1st in each odd-numbered year following enactment of
the biennial budget. If the parties fail to agree upon impasse
procedures under this section, the impasse procedures provided in RCW 47.64.210 through 47.64.230 apply. It is
unlawful for either party to refuse to participate in the
impasse procedures provided in RCW 47.64.210 through
47.64.230. [1983 c 15 § 11.]
47.64.210
47.64.210 Mediation. In the absence of an impasse
agreement between the parties or the failure of either party to
utilize its procedures by August 1st in each odd-numbered
year, the marine employees' commission shall, upon the
request of either party, appoint an impartial and disinterested
person to act as mediator pursuant to RCW 47.64.280. It is
the function of the mediator to bring the parties together to
effectuate a settlement of the dispute, but the mediator shall
not compel the parties to agree. [1983 c 15 § 12.]
47.64.220
47.64.220 Salary survey, fact-finding. (1) Prior to collective bargaining, the marine employees' commission shall
conduct a salary survey. The results of the survey shall be
published in a report which shall be a public document comparing wages, hours, employee benefits, and conditions of
employment of involved ferry employees with those of public and private sector employees in states along the west coast
of the United States, including Alaska, and in British Columbia doing directly comparable but not necessarily identical
work, giving consideration to factors peculiar to the area and
the classifications involved. Such survey report shall be for
(2004 Ed.)
Marine Employees—Public Employment Relations
the purpose of disclosing generally prevailing levels of compensation, benefits, and conditions of employment. It shall be
used to guide generally but not to define or limit collective
bargaining between the parties. The commission shall make
such other findings of fact as the parties may request during
bargaining or impasse.
(2) Except as provided in subsection (3) of this section,
salary and employee benefit information collected from private employers that identifies a specific employer with the
salary and employee benefit rates which that employer pays
to its employees is not subject to public disclosure under
chapter 42.17 RCW.
(3) A person or entity, having reason to believe that the
salary survey results are inaccurate, may submit a petition to
the state auditor requesting an audit of the data upon which
the salary survey results are based. The state auditor shall
review and analyze all data collected for the salary survey,
including proprietary information, but is prohibited from disclosing the salary survey data to any other person or entity,
except by court order. [1999 c 256 § 1; 1989 c 327 § 2; 1983
c 15 § 13.]
Retroactive application—1999 c 256 § 1: "Section 1, chapter 256,
Laws of 1999 is a clarification of existing law and applies retroactively."
[1999 c 256 § 3.]
47.64.230
47.64.230 Waiver of mediation and fact-finding. By
mutual agreement, the parties may waive mediation and factfinding, as provided for in RCW 47.64.210 and 47.64.220,
and proceed with binding arbitration as provided for in RCW
47.64.240. The waiver shall be in writing and be signed by
the representatives of the parties. [1983 c 15 § 14.]
47.64.240
47.64.240 Binding arbitration. (1) If impasse persists
fourteen days after the mediator has been appointed, or
beyond any other date mutually agreed to by the parties, all
impasse items shall be submitted to arbitration pursuant to
this section, and that arbitration shall be binding upon the
parties.
(2) Each party shall submit to the other within four days
of request, a final offer on the impasse items with proof of
service of a copy upon the other party. Each party shall also
submit a copy of a draft of the proposed collective bargaining
agreement to the extent to which agreement has been reached
and the name of its selected arbitrator. The parties may continue to negotiate all offers until an agreement is reached or a
decision rendered by the panel of arbitrators.
As an alternative procedure, the two parties may agree to
submit the dispute to a single arbitrator. If the parties cannot
agree on the arbitrator within four days, the selection shall be
made pursuant to subsection (5) of this section. The full costs
of arbitration under this provision shall be shared equally by
the parties to the dispute.
(3) The submission of the impasse items to the arbitrators shall be limited to those issues upon which the parties
have not reached agreement. With respect to each such item,
the arbitration panel award shall be restricted to the final
offers on each impasse item submitted by the parties to the
arbitration board on each impasse item.
(4) The panel of arbitrators shall consist of three members appointed in the following manner:
(2004 Ed.)
47.64.240
(a) One member shall be appointed by the secretary of
transportation;
(b) One member shall be appointed by the ferry
employee organization;
(c) One member shall be appointed mutually by the
members appointed by the secretary of transportation and the
employee organization. The last member appointed shall be
the chairman of the panel of arbitrators. No member
appointed may be an employee of the parties;
(d) Ferry system management and the employee organization shall each pay the fees and expenses incurred by the
arbitrator each selected. The fee and expenses of the chairman of the panel shall be shared equally by each party.
(5) If the third member has not been selected within four
days of notification as provided in subsection (2) of this section, a list of seven arbitrators shall be submitted to the parties
by the marine employees' commission. The two arbitrators
selected by ferry system management and the ferry employee
organization shall determine by lot which arbitrator shall
remove the first name from the list submitted by the marine
employees' commission. The second arbitrator and the first
arbitrator shall alternately remove one additional name until
only one name remains. The person whose name remains
shall become the chairman of the panel of arbitrators and
shall call a meeting within thirty days, or at such time mutually agreed to by the parties, at a location designated by him
or her. In lieu of a list of seven nominees for the third member
being submitted by the marine employees' commission, the
parties may mutually agree to have either the Federal Mediation and Conciliation Service or the American Arbitration
Association submit a list of seven nominees.
(6) If a vacancy occurs on the panel of arbitrators, the
selection for replacement of that member shall be in the same
manner and within the same time limits as the original member was chosen. No final award under subsection (3) of this
section may be made by the panel until three arbitrators have
been chosen.
(7) The panel of arbitrators shall at no time engage in an
effort to mediate or otherwise settle the dispute in any manner
other than that prescribed in this section.
(8) From the time of appointment until such time as the
panel of arbitrators makes its final determination, there shall
be no discussion concerning recommendations for settlement
of the dispute by the members of the panel of arbitrators with
parties other than those who are direct parties to the dispute.
The panel of arbitrators may conduct formal or informal hearings to discuss offers submitted by both parties.
(9) The panel of arbitrators shall consider, in addition to
any other relevant factors, the following factors:
(a) Past collective bargaining contracts between the parties including the bargaining that led up to the contracts;
(b) Comparison of wages, hours, employee benefits, and
conditions of employment of the involved ferry employees
with those of public and private sector employees in states
along the west coast of the United States, including Alaska,
and in British Columbia doing directly comparable but not
necessarily identical work, giving consideration to factors
peculiar to the area and the classifications involved;
(c) The interests and welfare of the public, the ability of
the ferry system to finance economic adjustments, and the
effect of the adjustments on the normal standard of services;
[Title 47 RCW—page 223]
47.64.250
Title 47 RCW: Public Highways and Transportation
(d) The right of the legislature to appropriate and to limit
funds for the conduct of the ferry system; and
(e) The limitations on ferry toll increases and operating
subsidies as may be imposed by the legislature.
(10) The chairman of the panel of arbitrators may hold
hearings and administer oaths, examine witnesses and documents, take testimony and receive evidence, issue subpoenas
to compel the attendance of witnesses and the production of
records, and delegate such powers to other members of the
panel of arbitrators. The chairman of the panel of arbitrators
may petition the superior court in Thurston county, or any
county in which any hearing is held, to enforce the order of
the chairman compelling the attendance of witnesses and the
production of records.
(11) A majority of the panel of arbitrators shall within
thirty days after its first meeting select the most reasonable
offer, in its judgment, of the final offers on each impasse item
submitted by the parties.
(12) The selections by the panel of arbitrators and items
agreed upon by the ferry system management and the
employee organization shall be deemed to be the collective
bargaining agreement between the parties.
(13) The determination of the panel of arbitrators shall
be by majority vote and shall be final and binding, subject to
RCW 47.64.180 and 47.64.190. The panel of arbitrators shall
give written explanation for its selection and inform the parties of its decision. [1989 c 327 § 3; 1983 c 15 § 15.]
47.64.250
47.64.250 Legal actions. (1) Any ferry employee organization and the department of transportation may sue or be
sued as an entity under this chapter. Service upon any party
shall be in accordance with law or the rules of civil procedure. Nothing in this chapter may be construed to make any
individual or his assets liable for any judgment against the
department of transportation or a ferry employee organization if the individual was acting in his official capacity.
(2) Any legal action by any ferry employee organization
or the department of transportation under this chapter shall be
filed in Thurston county superior court within ten days of
when the cause of action arose. The court shall consider those
actions on a priority basis and determine the merits of the
actions within thirty days of filing. [1983 c 15 § 16.]
47.64.260
47.64.260 Notice and service. Any notice required
under this chapter shall be in writing, but service thereof is
sufficient if mailed by certified mail, return receipt requested,
addressed to the last known address of the parties, or sent by
electronic facsimile transmission with transaction report verification and same-day United States postal service mailing
of copies or service as specified in Title 316 WAC, unless
otherwise provided in this chapter. Refusal of certified mail
by any party shall be considered service. Prescribed time
periods commence from the date of the receipt of the notice.
Any party may at any time execute and deliver an acceptance
of service in lieu of mailed notice. [2001 c 19 § 1; 1983 c 15
§ 17.]
47.64.270
47.64.270 Insurance and health care. Absent a collective bargaining agreement to the contrary, the department of
transportation shall provide contributions to insurance and
[Title 47 RCW—page 224]
health care plans for ferry system employees and dependents,
as determined by the state health care authority, under chapter 41.05 RCW; and the ferry system management and
employee organizations may collectively bargain for other
insurance and health care plans, and employer contributions
may exceed that of other state agencies as provided in RCW
41.05.050, subject to RCW 47.64.180. To the extent that
ferry employees by bargaining unit have absorbed the
required offset of wage increases by the amount that the
employer's contribution for employees' and dependents'
insurance and health care plans exceeds that of other state
general government employees in the 1985-87 fiscal biennium, employees shall not be required to absorb a further offset except to the extent the differential between employer
contributions for those employees and all other state general
government employees increases during any subsequent fiscal biennium. If such differential increases in the 1987-89 fiscal biennium or the 1985-87 offset by bargaining unit is
insufficient to meet the required deduction, the amount available for compensation shall be reduced by bargaining unit by
the amount of such increase or the 1985-87 shortage in the
required offset. Compensation shall include all wages and
employee benefits. [1995 1st sp.s. c 6 § 6; 1993 c 492 § 224;
1988 c 107 § 21; 1987 c 78 § 2; 1983 c 15 § 18.]
Effective date—1995 1st sp.s. c 6: See note following RCW
28A.400.410.
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
Short title—Severability—Savings—Captions not law—Reservation of legislative power—Effective dates—1993 c 492: See RCW
43.72.910 through 43.72.915.
Implementation—Effective dates—1988 c 107: See RCW 41.05.901.
Intent—1987 c 78: "The legislature finds that the provisions of RCW
47.64.270 have been subject to misinterpretation. The objective of this act is
to clarify the intent of RCW 47.64.270 as originally enacted." [1987 c 78 §
1.]
Effective date—1987 c 78: "This act is necessary for the immediate
preservation of the public peace, health, and safety, the support of the state
government and its existing public institutions, and shall take effect July 1,
1987." [1987 c 78 § 3.]
47.64.280
47.64.280 Marine employees' commission. (1) There
is created the marine employees' commission. The governor
shall appoint the commission with the consent of the senate.
The commission shall consist of three members: One member to be appointed from labor, one member from industry,
and one member from the public who has significant knowledge of maritime affairs. The public member shall be chairman of the commission. One of the original members shall be
appointed for a term of three years, one for a term of four
years, and one for a term of five years. Their successors shall
be appointed for terms of five years each, except that any person chosen to fill a vacancy shall be appointed only for the
unexpired term of the member whom he succeeds. Commission members are eligible for reappointment. Any member of
the commission may be removed by the governor, upon
notice and hearing, for neglect of duty or malfeasance in
office, but for no other cause. Commission members are not
eligible for state retirement under chapter 41.40 RCW by virtue of their service on the commission. Members of the commission shall be compensated in accordance with RCW
43.03.250 and shall receive reimbursement for official travel
and other expenses at the same rate and on the same terms as
(2004 Ed.)
Multimodal Transportation Programs
provided for the transportation commission by RCW
47.01.061. The payments shall be made from the Puget
Sound ferry operations account.
(2) The marine employees' commission shall: (a) Adjust
all complaints, grievances, and disputes between labor and
management arising out of the operation of the ferry system
as provided in RCW 47.64.150; (b) provide for impasse
mediation as required in RCW 47.64.210; (c) conduct factfinding and provide salary surveys as required in RCW
47.64.220; and (d) provide for the selection of an impartial
arbitrator as required in RCW 47.64.240(5).
(3) In adjudicating all complaints, grievances, and disputes, the party claiming labor disputes shall, in writing,
notify the marine employees' commission, which shall make
careful inquiry into the cause thereof and issue an order
advising the ferry employee, or the ferry employee organization representing him or her, and the department of transportation, as to the decision of the commission.
The parties are entitled to offer evidence relating to disputes at all hearings conducted by the commission. The
orders and awards of the commission are final and binding
upon any ferry employee or employees or their representative
affected thereby and upon the department.
The commission shall adopt rules of procedure under
chapter 34.05 RCW.
The commission has the authority to subpoena any ferry
employee or employees, or their representatives, and any
member or representative of the department, and any witnesses. The commission may require attendance of witnesses
and the production of all pertinent records at any hearings
held by the commission. The subpoenas of the commission
are enforceable by order of any superior court in the state of
Washington for the county within which the proceeding may
be pending. The commission may hire staff as necessary,
appoint consultants, enter into contracts, and conduct studies
as reasonably necessary to carry out this chapter. [1984 c 287
§ 95; 1983 c 15 § 19.]
Legislative findings—Severability—Effective date—1984 c 287:
See notes following RCW 43.03.220.
Compensation of class four groups: RCW 43.03.250.
47.64.290
47.64.290 Toll bridge employees subject to civil service. Notwithstanding any other provisions of this chapter,
toll bridge employees of the marine transportation division
are subject to chapter 41.06 RCW. [1984 c 48 § 2.]
47.64.900
47.64.900 Section captions not part of law—1983 c
15. Section captions used in this act constitute no part of the
law. [1983 c 15 § 29.]
47.64.910
47.64.910 Severability—1983 c 15. If any provision of
this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1983 c 15 § 30.]
(2004 Ed.)
47.66.040
Chapter 47.66 RCW
MULTIMODAL TRANSPORTATION PROGRAMS
Chapter 47.66
Sections
47.66.010
47.66.030
47.66.040
47.66.070
47.66.900
Legislative declaration.
Transportation improvement board—Authority—Expenses.
Selection process—Local matching funds.
Multimodal transportation account.
Effective date—1993 c 393.
47.66.010
47.66.010 Legislative declaration. There is significant
state interest in assuring that viable multimodal transportation programs are available throughout the state. The legislature recognizes the need to create a mechanism to fund multimodal transportation programs and projects. The legislature
further recognizes the complexities associated with current
funding mechanisms and seeks to create a process that would
allow for all transportation programs and projects to compete
for limited resources. [1993 c 393 § 3.]
47.66.030
47.66.030 Transportation improvement board—
Authority—Expenses. (1)(a) The transportation improvement board is authorized and responsible for the final selection of programs and projects funded from the central Puget
Sound public transportation account; public transportation
systems account; and the intermodal surface transportation
and efficiency act of 1991, surface transportation program,
statewide competitive.
(b) The board may establish subcommittees as well as
technical advisory committees to carry out the mandates of
this chapter.
(2) Expenses of the board, including administrative
expenses for managing the program, shall be paid in accordance with RCW 47.26.140. [1996 c 49 § 3; 1995 c 269 §
2604; 1993 c 393 § 5.]
Effective date—1995 c 269: See note following RCW 9.94A.850.
Part headings not law—Severability—1995 c 269: See notes following RCW 13.40.005.
47.66.040
47.66.040 Selection process—Local matching funds.
(1) The transportation improvement board shall select programs and projects based on a competitive process consistent
with the mandates governing each account or source of funds.
The competition shall be consistent with the following criteria:
(a) Local, regional, and state transportation plans;
(b) Local transit development plans; and
(c) Local comprehensive land use plans.
(2) The following criteria shall be considered by the
board in selecting programs and projects:
(a) Objectives of the growth management act, the high
capacity transportation act, the commute trip reduction act,
transportation demand management programs, federal and
state air quality requirements, and federal Americans with
disabilities act and related state accessibility requirements;
and
(b) Energy efficiency issues, freight and goods movement as related to economic development, regional significance, rural isolation, the leveraging of other funds including
funds administered by this board, and safety and security
issues.
[Title 47 RCW—page 225]
47.66.070
Title 47 RCW: Public Highways and Transportation
(3) The board shall determine the appropriate level of
local match required for each program and project based on
the source of funds. [1995 c 269 § 2606; 1993 c 393 § 6.]
Effective date—1995 c 269: See note following RCW 9.94A.850.
Part headings not law—Severability—1995 c 269: See notes following RCW 13.40.005.
47.66.070 Multimodal transportation account. The
multimodal transportation account is created in the state treasury. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for
transportation purposes. [2000 2nd sp.s. c 4 § 2.]
47.66.070
Effective date—2000 2nd sp.s. c 4 §§ 1-3, 20: See note following
RCW 82.08.020.
47.66.900 Effective date—1993 c 393. This act is necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its
existing public institutions, and shall take effect immediately
[May 15, 1993]. [1993 c 393 § 10.]
47.66.900
Chapter 47.68
Chapter 47.68 RCW
AERONAUTICS
(Formerly: Chapter 14.04 RCW, Aeronautics commission)
Recycling at airports: RCW 70.93.095.
47.68.010 Statement of policy. It is hereby declared
that the purpose of this chapter is to further the public interest
and aeronautical progress by providing for the protection and
promotion of safety in aeronautics; by cooperating in effecting uniformity of the laws and regulations relating to the
development and regulation of aeronautics in the several
states consistent with federal aeronautics laws and regulations; by granting to a state agency such powers and imposing
upon it such duties that the state may properly perform its
functions relative to aeronautics and effectively exercise its
jurisdiction over persons and property within such jurisdiction, assist in the development of a statewide system of airports, cooperate with and assist the municipalities of this state
and others engaged in aeronautics, and encourage and
develop aeronautics; by establishing only such regulations as
are essential in order that persons engaged in aeronautics of
every character may so engage with the least possible restriction, consistent with the safety and the rights of others; and by
providing for cooperation with the federal authorities in the
development of a national system of civil aviation and for
coordination of the aeronautical activities of those authorities
and the authorities of this state. [1947 c 165 § 2; Rem. Supp.
1947 § 10964-82. Formerly RCW 14.04.010.]
47.68.010
Sections
47.68.015 Change of meaning, certain terms. Unless
the language specifically indicates otherwise, or unless the
context plainly requires a different interpretation:
Wherever in any provision in the Revised Code of Washington the term "Washington state aeronautics commission",
"the state aeronautics commission", "the aeronautics commission of the state", "the aeronautics commission", or "the
commission" (when referring to the Washington state aeronautics commission) is used, it shall mean the department of
transportation created in RCW 47.01.031.
Wherever in any provision in the Revised Code of Washington the term "state director of aeronautics", "director of
aeronautics", or "director" (when referring to the state director of aeronautics) is used, it shall mean the secretary of transportation whose office is created in RCW 47.01.041. [1977
ex.s. c 151 § 22.]
47.68.015
47.68.010
47.68.015
47.68.020
47.68.060
47.68.070
47.68.080
47.68.090
47.68.100
47.68.110
47.68.120
47.68.130
47.68.140
47.68.150
47.68.160
47.68.170
47.68.180
47.68.185
47.68.190
47.68.200
47.68.210
47.68.220
47.68.230
47.68.233
47.68.234
47.68.235
47.68.236
47.68.240
47.68.250
47.68.255
47.68.280
47.68.290
47.68.300
47.68.310
47.68.320
47.68.330
47.68.340
47.68.350
47.68.360
47.68.380
47.68.900
Statement of policy.
Change of meaning, certain terms.
Definitions.
Offices.
General powers.
Drafts of legislation, other duties.
Aid to municipalities, Indian tribes—Federal aid.
Acquisition and disposal of airports, facilities, etc.
Zoning powers not interfered with.
Condemnation, how exercised.
Contracts or leases of facilities in operating airports.
Lease of airports.
Lien for state's charges.
Acceptance of federal moneys.
State airways system.
Execution of necessary contracts.
Establishment of procedures required by conditions of federal
transfers of facilities.
Exclusive grants prohibited.
Exercise of powers, public and governmental purpose.
Rules—Standards.
Operating aircraft recklessly or under influence of intoxicants
or drugs.
Aircraft, airman, and airwoman certificates required.
Registration of pilots—Certificates—Fees—Exemptions—
Use of fees.
Registration of airman and airwoman.
License or certificate suspension—Noncompliance with support order—Reissuance.
Aircraft search and rescue, safety, and education account.
Penalties for violations.
Registration of aircraft.
Evasive registration.
Investigations, hearings, etc.—Subpoenas—Compelling attendance.
Joint hearings—Cooperation.
State and municipal agencies to cooperate.
Enforcement of aeronautics laws.
Service of orders—Hearings—Review.
Exchange of data, reports of violations, etc.
Hazardous structures and obstacles—Marking—Hearing to
determine hazard.
Hazardous structures and obstacles—Reporting location—
Subpoenas.
Hazardous structures and obstacles—Exemption of structures
required by federal law to be marked.
Search and rescue.
Severability—1947 c 165.
[Title 47 RCW—page 226]
47.68.020 Definitions. As used in this chapter, unless
the context clearly indicates otherwise:
(1) "Aeronautics" means the science and art of flight and
including but not limited to transportation by aircraft; the
operation, construction, repair, or maintenance of aircraft,
aircraft power plants and accessories, including the repair,
packing, and maintenance of parachutes; the design, establishment, construction, extension, operation, improvement,
repair, or maintenance of airports or air navigation facilities;
and instruction in flying or ground subjects pertaining
thereto.
(2) "Aircraft" means any contrivance now known, or
hereafter invented, used or designed for navigation of or
flight in the air.
(3) "Airport" means any area of land or water which is
used, or intended for use, for the landing and take-off of aircraft, and any appurtenant areas which are used, or intended
for use, for airport buildings or other airport facilities or
47.68.020
(2004 Ed.)
Aeronautics
right-of-way, together with all airport buildings and facilities
located thereon.
(4) "Department" means the state department of transportation.
(5) "Secretary" means the state secretary of transportation.
(6) "State" or "this state" means the state of Washington.
(7) "Air navigation facility" means any facility, other
than one owned or operated by the United States, used in,
available for use in, or designed for use in aid of air navigation, including any structures, mechanisms, lights, beacons,
markers, communicating systems, or other instrumentalities
or devices used or useful as an aid, or constituting an advantage or convenience, to the safe taking-off, navigation, and
landing of aircraft, or the safe and efficient operation or
maintenance of an airport, and any combination of any or all
of such facilities.
(8) "Operation of aircraft" or "operate aircraft" means
the use, navigation, or piloting of aircraft in the airspace over
this state or upon any airport within this state.
(9) "Airman or airwoman" means any individual who
engages, as the person in command, or as pilot, mechanic, or
member of the crew in the navigation of aircraft while under
way, and any individual who is directly in charge of the
inspection, maintenance, overhauling, or repair of aircraft
engines, airframes, propellers, or appliances, and any individual who serves in the capacity of aircraft dispatcher or airtraffic control tower operator; but does not include any individual employed outside the United States, or any individual
employed by a manufacturer of aircraft, aircraft engines, airframes, propellers, or appliances to perform duties as inspector or mechanic in connection therewith, or any individual
performing inspection or mechanical duties in connection
with aircraft owned or operated by the person.
(10) "Aeronautics instructor" means any individual who
for hire or reward engages in giving instruction or offering to
give instruction in flying or ground subjects pertaining to
aeronautics, but excludes any instructor in a public school,
university, or institution of higher learning duly accredited
and approved for carrying on collegiate work, who instructs
in flying or ground subjects pertaining to aeronautics, while
in the performance of his or her duties at such school, university, or institution.
(11) "Air school" means any person who advertises, represents, or holds out as giving or offering to give instruction
in flying or ground subjects pertaining to aeronautics whether
for or without hire or reward; but excludes any public school,
university, or institution of higher learning duly accredited
and approved for carrying on collegiate work.
(12) "Person" means any individual, firm, partnership,
corporation, company, association, joint stock association, or
body politic; and includes any trustee, receiver, assignee, or
other similar representative thereof.
(13) "Municipal" means pertaining to a municipality,
and "municipality" means any county, city, town, authority,
district, or other political subdivision or public corporation of
this state.
(14) "Airport hazard" means any structure, object of natural growth, or use of land, which obstructs the airspace
required for the flight of aircraft in landing or taking off at an
(2004 Ed.)
47.68.090
airport or is otherwise hazardous to such landing or taking
off.
(15) "State airway" means a route in the navigable airspace over and above the lands or waters of this state, designated by the department as a route suitable for air navigation.
[1993 c 208 § 4; 1984 c 7 § 342; 1947 c 165 § 1; Rem. Supp.
1947 § 10964-81. Formerly RCW 14.04.020.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.060
47.68.060 Offices. Suitable offices and office equipment shall be provided by the state for the aeronautics division of the department of transportation in a city in the state
that it may designate, and the department may incur the necessary expense for office furniture, stationery, printing, incidental expenses, and other expenses necessary for the administration of this chapter. [1984 c 7 § 343; 1947 c 165 § 6;
Rem. Supp. 1947 § 10964-86. Formerly RCW 14.04.060.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.070
47.68.070 General powers. The department has general supervision over aeronautics within this state. It is
empowered and directed to encourage, foster, and assist in
the development of aeronautics in this state and to encourage
the establishment of airports and air navigation facilities. It
shall cooperate with and assist the federal government, the
municipalities of this state, and other persons in the development of aeronautics, and shall seek to coordinate the aeronautical activities of these bodies and persons. Municipalities are
authorized to cooperate with the department in the development of aeronautics and aeronautical facilities in this state.
[1984 c 7 § 344; 1947 c 165 § 7; Rem. Supp. 1947 § 1096487. Formerly RCW 14.04.070.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.080
47.68.080 Drafts of legislation, other duties. The
department may draft and recommend necessary legislation
to advance the interests of the state in aeronautics, represent
the state in aeronautical matters before federal agencies and
other state agencies, and participate as party plaintiff or
defendant or as intervener on behalf of the state or any
municipality or citizen thereof in any controversy which
involves the interest of the state in aeronautics. [1984 c 7 §
345; 1947 c 165 § 8; 1945 c 252 § 5; Rem. Supp. 1947 §
10964-88. Formerly RCW 14.04.080.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.090
47.68.090 Aid to municipalities, Indian tribes—Federal aid. The department of transportation may make available its engineering and other technical services, with or
without charge, to any municipality or person desiring them
in connection with the planning, acquisition, construction,
improvement, maintenance or operation of airports or air
navigation facilities.
The department may render financial assistance by grant
or loan or both to any municipality or municipalities acting
jointly in the planning, acquisition, construction, improvement, maintenance, or operation of an airport owned or controlled, or to be owned or controlled by such municipality or
municipalities, or to any Indian tribe recognized as such by
the federal government or such tribes acting jointly in the
[Title 47 RCW—page 227]
47.68.100
Title 47 RCW: Public Highways and Transportation
planning, acquisition, construction, improvement, maintenance or operation of an airport, owned or controlled, or to be
owned or controlled by such tribe or tribes and to be held
available for the general use of the public, out of appropriations made by the legislature for such purposes. Such financial assistance may be furnished in connection with federal or
other financial aid for the same purposes: PROVIDED, That
no grant or loan or both shall be in excess of two hundred
fifty thousand dollars for any one project: PROVIDED FURTHER, That no grant or loan or both shall be granted unless
the municipality or municipalities acting jointly, or the tribe
or tribes acting jointly shall from their own funds match any
funds made available by the department upon such ratio as
the department may prescribe.
The department is authorized to act as agent of any
municipality or municipalities acting jointly or any tribe or
tribes acting jointly, upon the request of such municipality or
municipalities, or such tribe or tribes in accepting, receiving,
receipting for and disbursing federal moneys, and other moneys public or private, made available to finance, in whole or
in part, the planning, acquisition, construction, improvement,
maintenance or operation of an airport or air navigation facility; and if requested by such municipality or municipalities,
or tribe or tribes, may act as its or their agent in contracting
for and supervising such planning, acquisition, construction,
improvement, maintenance, or operation; and all municipalities and tribes are authorized to designate the department as
their agent for the foregoing purposes. The department, as
principal on behalf of the state, and any municipality on its
own behalf, may enter into any contracts, with each other or
with the United States or with any person, which may be
required in connection with a grant or loan of federal moneys
for airport or air navigation facility purposes. All federal
moneys accepted under this section shall be accepted and
transferred or expended by the department upon such terms
and conditions as are prescribed by the United States. All
moneys received by the department pursuant to this section
shall be deposited in the state treasury, and, unless otherwise
prescribed by the authority from which such moneys were
received, shall be kept in separate funds designated according
to the purposes for which the moneys were made available,
and held by the state in trust for such purposes. All such moneys are hereby appropriated for the purposes for which the
same were made available, to be disbursed or expended in
accordance with the terms and conditions upon which they
were made available: PROVIDED, That any landing fee or
charge imposed by any Indian tribe or tribes for the privilege
of use of an airport facility planned, acquired, constructed,
improved, maintained, or operated with financial assistance
from the department pursuant to this section must apply
equally to tribal and nontribal members: PROVIDED FURTHER, That in the event any municipality or municipalities
or Indian tribe or tribes, or any distributor of aircraft fuel as
defined by RCW 82.42.020 which operates in any airport
facility which has received financial assistance pursuant to
this section, fails to collect the aircraft fuel excise tax as specified in chapter 82.42 RCW, all funds or value of technical
assistance given or paid to such municipality or municipalities or Indian tribe or tribes under the provisions of this section shall revert to the department, and shall be due and payable to the department immediately. [1980 c 67 § 1; 1975 1st
[Title 47 RCW—page 228]
ex.s. c 161 § 1; 1947 c 165 § 9; Rem. Supp. 1947 § 10964-89.
Formerly RCW 14.04.090.]
Distributor of aircraft fuel defined: RCW 82.42.010(7).
47.68.100
47.68.100 Acquisition and disposal of airports, facilities, etc. The department is authorized on behalf of and in the
name of the state, out of appropriations and other moneys
made available for such purposes, to plan, establish, construct, enlarge, improve, maintain, equip, operate, regulate,
protect, and police airports, air navigation facilities, and air
markers and/or air marking systems, either within or without
the state, including the construction, installation, equipment,
maintenance, and operation at the airports of buildings and
other facilities for the servicing of aircraft or for the comfort
and accommodation of air travelers. For such purposes the
department may by purchase, gift, devise, lease, condemnation, or otherwise, acquire property, real or personal, or any
interest therein, including easements or land outside the
boundaries of an airport or airport site, as are necessary to
permit safe and efficient operation of the airports or to permit
the removal, elimination, marking, or lighting of obstructions
or airport hazards, or to prevent the establishment of airport
hazards. In like manner the department may acquire existing
airports and air navigation facilities. However, it shall not
acquire or take over any airport or air navigation facility
owned or controlled by a municipality of this or any other
state without the consent of the municipality. The department
may by sale, lease, or otherwise, dispose of any property, airport, air navigation facility, or portion thereof or interest
therein. The disposal by sale, lease, or otherwise shall be in
accordance with the laws of this state governing the disposition of other property of the state, except that in the case of
disposals to any municipality or state government or the
United States for aeronautical purposes incident thereto, the
sale, lease, or other disposal may be effected in such manner
and upon such terms as the department deems in the best
interest of the state. The department may exercise any powers
granted by this section jointly with any municipalities, agencies, or departments of the state government, with other states
or their municipalities, or with the United States. [1984 c 7 §
346; 1947 c 165 § 10; Rem. Supp. 1947 § 10964-90. Formerly RCW 14.04.100.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.110
47.68.110 Zoning powers not interfered with. Nothing contained in this chapter shall be construed to limit any
right, power or authority of the state or a municipality to regulate airport hazards by zoning. [1947 c 165 § 11; Rem.
Supp. 1947 § 10964-91. Formerly RCW 14.04.110.]
Planning commissions: Chapter 35.63 RCW.
47.68.120
47.68.120 Condemnation, how exercised. In the condemnation of property authorized by this chapter, the department shall proceed in the name of the state in the manner that
property is acquired by the department for public uses. [1984
c 7 § 347; 1947 c 165 § 12; Rem. Supp. 1947 § 10964-92.
Formerly RCW 14.04.120.]
Severability—1984 c 7: See note following RCW 47.01.141.
Acquisition of highway property: Chapter 47.12 RCW.
Eminent domain by state: Chapter 8.04 RCW.
(2004 Ed.)
Aeronautics
47.68.130
47.68.130 Contracts or leases of facilities in operating
airports. In operating an airport or air navigation facility
owned or controlled by the state, the department may enter
into contracts, leases, and other arrangements for a term not
exceeding twenty-five years with any persons. The department may grant the privilege of using or improving the airport or air navigation facility or any portion or facility thereof
or space therein for commercial purposes, confer the privilege of supplying goods, commodities, things, services, or
facilities at the airport or air navigation facility, or make
available services to be furnished by the department or its
agents at the airport or air navigation facility. In each case the
department may establish the terms and conditions and fix
the charges, rentals, or fees for the privileges or services,
which shall be reasonable and uniform for the same class of
privilege or service and shall be established with due regard
to the property and improvements used and the cost of operation to the state. In no case shall the public be deprived of its
rightful, equal, and uniform use of the airport, air navigation
facility, or portion or facility thereof. [1984 c 7 § 348; 1947
c 165 § 13; Rem. Supp. 1947 § 10964-93. Formerly RCW
14.04.130.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.140
47.68.140 Lease of airports. The department may by
contract, lease, or other arrangement, upon a consideration
fixed by it, grant to any qualified person for a term not to
exceed twenty-five years the privilege of operating, as agent
of the state or otherwise, any airport owned or controlled by
the state: PROVIDED, That no such person shall be granted
any authority to operate the airport other than as a public airport or to enter into any contracts, leases, or other arrangements in connection with the operation of the airport which
the department might not have undertaken under RCW
47.68.130. [1983 c 3 § 141; 1947 c 165 § 14; Rem. Supp.
1947 § 10964-94. Formerly RCW 14.04.140.]
47.68.150
47.68.150 Lien for state's charges. To enforce the payment of any charges for repairs to, improvements, storage, or
care of any personal property made or furnished by the
department or its agents in connection with the operation of
an airport or air navigation facility owned or operated by the
state, the state shall have liens on such property, which shall
be enforceable by the department as provided by law. [1984
c 7 § 349; 1947 c 165 § 15; Rem. Supp. 1947 § 10964-95.
Formerly RCW 14.04.150.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.160
47.68.160 Acceptance of federal moneys. The department is authorized to accept, receive, receipt for, disburse,
and expend federal moneys, and other moneys public or private, made available to accomplish, in whole or in part, any
of the purposes of this section. All federal moneys accepted
under this section shall be accepted and expended by the
department upon such terms and conditions as are prescribed
by the United States. In accepting federal moneys under this
section, the department shall have the same authority to enter
into contracts on behalf of the state as is granted to the department under RCW 47.68.090 with respect to federal moneys
accepted on behalf of municipalities. All moneys received by
(2004 Ed.)
47.68.190
the department pursuant to this section shall be deposited in
the state treasury, and, unless otherwise prescribed by the
authority from which such moneys were received, shall be
kept in separate funds designated according to the purposes
for which the moneys were made available, and held by the
state in trust for such purposes. All such moneys are hereby
appropriated for the purpose of which the same were made
available, to be disbursed or expended in accordance with the
terms and conditions upon which they were made available.
[1983 c 3 § 142; 1947 c 165 § 16; 1945 c 252 § 7; Rem. Supp.
1947 § 10964-96. Formerly RCW 14.04.160.]
47.68.170
47.68.170 State airways system. The department may
designate, design, and establish, expand, or modify a state
airways system that will best serve the interest of the state. It
may chart the airways system and arrange for publication and
distribution of such maps, charts, notices, and bulletins relating to the airways as may be required in the public interest.
The system shall be supplementary to and coordinated in
design and operation with the federal airways system. It may
include all types of air navigation facilities, whether publicly
or privately owned, if the facilities conform to federal safety
standards. [1984 c 7 § 350; 1947 c 165 § 17; Rem. Supp.
1947 § 10964-97. Formerly RCW 14.04.170.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.180
47.68.180 Execution of necessary contracts. The
department may enter into any contracts necessary to the execution of the powers granted it by this chapter. All contracts
made by the department, either as the agent of the state or as
the agent of any municipality, shall be made pursuant to the
laws of the state governing the making of like contracts.
Where the planning, acquisition, construction, improvement,
maintenance, or operation of any airport or air navigation
facility is financed wholly or partially with federal moneys,
the department as agent of the state or of any municipality,
may let contracts in the manner prescribed by the federal
authorities acting under the laws of the United States and any
rules or regulations made thereunder. [1984 c 7 § 351; 1947
c 165 § 18; Rem. Supp. 1947 § 10964-98. Formerly RCW
14.04.180.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.185
47.68.185 Establishment of procedures required by
conditions of federal transfers of facilities. The department
is authorized to establish the necessary accounts or administrative procedures required by conditions attached to transfers of airport facilities from the federal government to the
state of Washington. [1984 c 7 § 352; 1963 c 73 § 1. Formerly RCW 14.04.185.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.190
47.68.190 Exclusive grants prohibited. The department shall not grant any exclusive right for the use of any
landing area or air navigation facility under its jurisdiction.
This section shall not be construed to prevent the making of
contracts, leases, and other arrangements pursuant to this
chapter. [1984 c 7 § 353; 1947 c 165 § 19; Rem. Supp. 1947
§ 10964-99. Formerly RCW 14.04.190.]
Severability—1984 c 7: See note following RCW 47.01.141.
[Title 47 RCW—page 229]
47.68.200
Title 47 RCW: Public Highways and Transportation
47.68.200 Exercise of powers, public and governmental purpose. The acquisition of any lands or interest therein
pursuant to this chapter, the planning, acquisition, establishment, construction, improvement, maintenance, equipment,
and operation of airports and air navigation facilities, whether
by the state separately or jointly with any municipality or
municipalities, and the exercise of any other powers herein
granted to the department are public and governmental functions, exercised for a public purpose, and matters of public
necessity. All lands and other property and privileges
acquired and used by or on behalf of the state in the manner
and for the purposes enumerated in this chapter shall and are
declared to be acquired and used for public and governmental
purposes and as a matter of public necessity. [1984 c 7 § 354;
1947 c 165 § 20; Rem. Supp. 1947 § 10964-100. Formerly
RCW 14.04.200.]
47.68.200
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.210 Rules—Standards. The department of
transportation may perform such acts, issue and amend such
orders, make, promulgate, and amend such reasonable general rules, and procedures, and establish such minimum standards, consistent with the provisions of this chapter, as it shall
deem necessary to perform its duties hereunder; all commensurate with and for the purpose of protecting and insuring the
general public interest and safety, the safety of persons operating, using or traveling in aircraft or persons receiving
instruction in flying or ground subjects pertaining to aeronautics, and the safety of persons and property on land or water,
and developing and promoting aeronautics in this state. No
rule of the department shall apply to airports or air navigation
facilities owned or operated by the United States.
The department shall keep on file with the code reviser,
and at the principal office of the department, a copy of all its
rules for public inspection.
The department shall provide for the publication and
general distribution of all its orders, rules, and procedures
having general effect. [1982 c 35 § 198; 1947 c 165 § 21;
Rem. Supp. 1947 § 10964-101. Formerly RCW 14.04.210.]
47.68.210
Intent—Severability—Effective dates—Application—1982 c 35:
See notes following RCW 43.07.160.
Notice of meetings: Chapter 42.30 RCW.
47.68.220 Operating aircraft recklessly or under
influence of intoxicants or drugs. It shall be unlawful for
any person to operate an aircraft in the air, or on the ground
or water, while under the influence of intoxicating liquor,
narcotics, or other habit-forming drug, or to operate an aircraft in the air or on the ground or water, in a careless manner
so as to endanger the life or property of another. In any proceeding charging careless or reckless operation of aircraft in
violation of this section, the court in determining whether the
operation was careless or reckless may consider the standards
for safe operation of aircraft prescribed by federal statutes or
regulations governing aeronautics. [1947 c 165 § 22; Rem.
Supp. 1947 § 10964-102. Formerly RCW 14.04.220.]
47.68.220
47.68.230 Aircraft, airman, and airwoman certificates required. It shall be unlawful for any person to operate
or cause or authorize to be operated any civil aircraft within
this state unless such aircraft has an appropriate effective cer47.68.230
[Title 47 RCW—page 230]
tificate, permit or license issued by the United States, if such
certificate, permit or license is required by the United States,
and a current registration certificate issued by the secretary of
transportation, if registration of the aircraft with the department of transportation is required by this chapter. It shall be
unlawful for any person to engage in aeronautics as an airman
or airwoman in the state unless the person has an appropriate
effective airman or airwoman certificate, permit, rating or
license issued by the United States authorizing him or her to
engage in the particular class of aeronautics in which he or
she is engaged, if such certificate, permit, rating or license is
required by the United States and a current airman's or airwoman's registration certificate issued by the department of
transportation as required by RCW 47.68.233 or 47.68.234.
Where a certificate, permit, rating or license is required
for an airman or airwoman by the United States or by RCW
47.68.233 or 47.68.234, it shall be kept in his or her personal
possession when he or she is operating within the state.
Where a certificate, permit or license is required by the
United States or by this chapter for an aircraft, it shall be carried in the aircraft at all times while the aircraft is operating
in the state and shall be conspicuously posted in the aircraft
where it may be readily seen by passengers or inspectors.
Such certificates shall be presented for inspection upon the
demand of any peace officer, or any other officer of the state
or of a municipality or member, official or employee of the
department of transportation authorized pursuant to this
chapter to enforce the aeronautics laws, or any official, manager or person in charge of any airport, or upon the reasonable request of any person. [1993 c 208 § 5; 1987 c 220 § 1;
1979 c 158 § 205; 1967 ex.s. c 68 § 2; 1967 ex.s. c 9 § 7; 1949
c 49 § 11; 1947 c 165 § 23; Rem. Supp. 1949 § 10964-103.
Formerly RCW 14.04.230.]
47.68.233 Registration of pilots—Certificates—
Fees—Exemptions—Use of fees. (1) The department shall
require that every pilot who is a resident of this state and
every nonresident pilot who regularly operates any aircraft in
this state be registered with the department. The department
shall charge an annual fee of fifteen dollars for each registration. For the period of July 1, 2003, through June 30, 2005,
seven dollars of each registration fee collected shall be deposited into the aeronautics account, to be used solely for airport
maintenance. All registration certificates issued under this
section shall be renewed annually during the month of the
registrant's birthdate.
(2) Except as provided in the paragraph above, the registration fee imposed by this section shall be used by the
department for the purpose of (a) search and rescue of lost
and downed aircraft and airmen under the direction and
supervision of the secretary, (b) safety and education, and (c)
volunteer recognition and support.
(3) Registration shall be effected by filing with the
department a certified written statement that contains the
information reasonably required by the department. The
department shall issue certificates of registration and in connection therewith shall prescribe requirements for the possession and exhibition of the certificates.
(4) The provisions of this section do not apply to:
(a) A pilot who operates an aircraft exclusively in the
service of any government or any political subdivision
47.68.233
(2004 Ed.)
Aeronautics
thereof, including the government of the United States, any
state, territory, or possession of the United States, or the District of Columbia;
(b) A pilot registered under the laws of a foreign country;
(c) A pilot engaged exclusively in commercial flying
constituting an act of interstate or foreign commerce;
(d) A person piloting an aircraft equipped with fully
functioning dual controls when a licensed instructor is in full
charge of one set of the controls and the flight is solely for
instruction or for the demonstration of the aircraft to a bona
fide prospective purchaser.
(5) Failure to register as provided in this section is a violation of RCW 47.68.230 and subjects the offender to the
penalties set forth in RCW 47.68.240(2). [2003 c 375 § 1;
2003 c 53 § 263; 2000 c 176 § 1; 1987 c 220 § 2; 1984 c 7 §
355; 1983 c 3 § 143; 1967 c 207 § 2. Formerly RCW
14.04.233.]
Reviser's note: This section was amended by 2003 c 53 § 263 and by
2003 c 375 § 1, each without reference to the other. Both amendments are
incorporated in the publication of this section under RCW 1.12.025(2). For
rule of construction, see RCW 1.12.025(1).
Effective date—2003 c 375: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2003."
[2003 c 375 § 7.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
Severability—1987 c 220: See note following RCW 47.68.230.
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.240
incorporated in the publication of this section under RCW 1.12.025(2). For
rule of construction, see RCW 1.12.025(1).
Effective date—2003 c 375: See note following RCW 47.68.233.
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
47.68.235
47.68.235 License or certificate suspension—Noncompliance with support order—Reissuance. The department shall immediately suspend the license or certificate of a
person who has been certified pursuant to RCW 74.20A.320
by the department of social and health services as a person
who is not in compliance with a support order or a *residential or visitation order. If the person has continued to meet all
other requirements for reinstatement during the suspension,
reissuance of the license or certificate shall be automatic
upon the department's receipt of a release issued by the
department of social and health services stating that the licensee is in compliance with the order. [1997 c 58 § 859.]
*Reviser's note: 1997 c 58 § 887 requiring a court to order certification
of noncompliance with residential provisions of a court-ordered parenting
plan was vetoed. Provisions ordering the department of social and health services to certify a responsible parent based on a court order to certify for noncompliance with residential provisions of a parenting plan were vetoed. See
RCW 74.20A.320.
Short title—Part headings, captions, table of contents not law—
Exemptions and waivers from federal law—Conflict with federal
requirements—Severability—1997 c 58: See RCW 74.08A.900 through
74.08A.904.
Effective dates—Intent—1997 c 58: See notes following RCW
74.20A.320.
47.68.234
47.68.234 Registration of airman and airwoman. (1)
The department shall require that every airman or airwoman
that is not registered under RCW 47.68.233 and who is a resident of this state, or every nonresident airman or airwoman
who is regularly performing duties as an airman or airwoman
within this state, be registered with the department. The
department shall charge an annual fee of fifteen dollars for
each registration. For the period of July 1, 2003, through
June 30, 2005, seven dollars of which shall be deposited into
the aeronautics account, to be used solely for airport maintenance. A registration certificate issued under this section is
to be renewed annually during the month of the registrant's
birthdate.
(2) Except as provided in the paragraph above, the
department shall use the registration fee imposed under this
section for the purposes of: (a) Search and rescue of lost and
downed aircraft and airmen or airwomen under the direction
and supervision of the secretary; and (b) safety and education.
(3) Registration is effected by filing with the department
a certified written statement that contains the information
reasonably required by the department. The department shall
issue certificates of registration and, in connection with the
certificates, shall provide requirements for the possession and
exhibition of the certificates.
(4) Failure to register as provided in this section is a violation of RCW 47.68.230 and subjects the offender to the
penalties set forth in RCW 47.68.240(2). [2003 c 375 § 2;
2003 c 53 § 264; 1993 c 208 § 3.]
Reviser's note: This section was amended by 2003 c 53 § 264 and by
2003 c 375 § 2, each without reference to the other. Both amendments are
(2004 Ed.)
47.68.236
47.68.236 Aircraft search and rescue, safety, and
education account. There is hereby created in the transportation fund of the state treasury an account to be known as the
aircraft search and rescue, safety, and education account. All
moneys received by the department under RCW 47.68.233
shall be deposited in such account. [1995 c 170 § 4; 1991
sp.s. c 13 § 38; 1985 c 57 § 63; 1983 c 3 § 144; 1967 c 207 §
3. Formerly RCW 14.04.236.]
Effective dates—Severability—1991 sp.s. c 13: See notes following
RCW 18.08.240.
Effective date—1985 c 57: See note following RCW 18.04.105.
47.68.240
47.68.240 Penalties for violations. (1) Except as provided in subsection (2) of this section, any person violating
any of the provisions of this chapter, or any of the rules, regulations, or orders issued pursuant thereto, is guilty of a misdemeanor.
(2)(a) Any person violating any of the provisions of
RCW 47.68.220, 47.68.230, or 47.68.255 is guilty of a gross
misdemeanor.
(b) In addition to, or in lieu of, the penalties provided in
this section, or as a condition to the suspension of a sentence
which may be imposed pursuant thereto, for violations of
RCW 47.68.220 and 47.68.230, the court in its discretion
may prohibit the violator from operating an aircraft within
the state for such period as it may determine but not to exceed
one year. Violation of the duly imposed prohibition of the
court may be treated as a separate offense under this section
or as a contempt of court.
[Title 47 RCW—page 231]
47.68.250
Title 47 RCW: Public Highways and Transportation
(3) In addition to the provisions of subsection[s] (1) [and
(2)] of this section, failure to register an aircraft, as required
by this chapter is subject to the following civil penalties:
(a) If the aircraft registration is sixty days to one hundred
nineteen days past due, the civil penalty is one hundred dollars.
(b) If the aircraft registration is one hundred twenty days
to one hundred eighty days past due, the civil penalty is two
hundred dollars.
(c) If the aircraft registration is over one hundred eighty
days past due, the civil penalty is four hundred dollars.
(4) In addition to the provisions in subsection[s] (1) [and
(2)] of this section, failure to register as a pilot, airman, or airwoman, as required by this chapter, is subject to a civil penalty of four times the fees that are due. If the pilot registration
is sixty days past due, the pilot, airman, or airwoman is subject to the [a] civil penalty of four times the fees that are due.
(5) The revenue from penalties prescribed in subsection
(3) of this section must be deposited into the aeronautics
account under RCW 82.42.090. The revenue from penalties
prescribed in subsection (4) of this section must be deposited
into the aircraft search and rescue, safety, and education
account under RCW 47.68.236. [2003 c 375 § 3; 2003 c 53 §
265; 2000 c 229 § 2; 1999 c 277 § 5; 1993 c 238 § 3; 1987 c
202 § 216; 1983 c 3 § 145; 1947 c 165 § 24; Rem. Supp. 1947
§ 10964-104. Formerly RCW 14.04.240.]
Reviser's note: This section was amended by 2003 c 53 § 265 and by
2003 c 375 § 3, each without reference to the other. Both amendments are
incorporated in the publication of this section under RCW 1.12.025(2). For
rule of construction, see RCW 1.12.025(1).
Effective date—2003 c 375: See note following RCW 47.68.233.
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
Effective date—2000 c 229: See note following RCW 46.16.010.
Intent—1987 c 202: See note following RCW 2.04.190.
47.68.250
47.68.250 Registration of aircraft. Every aircraft shall
be registered with the department for each calendar year in
which the aircraft is operated or is based within this state. A
fee of fifteen dollars shall be charged for each such registration and each annual renewal thereof.
Possession of the appropriate effective federal certificate, permit, rating, or license relating to ownership and airworthiness of the aircraft, and payment of the excise tax
imposed by Title 82 RCW for the privilege of using the aircraft within this state during the year for which the registration is sought, and payment of the registration fee required by
this section shall be the only requisites for registration of an
aircraft under this section.
The registration fee imposed by this section shall be payable to and collected by the secretary. The fee for any calendar year must be paid during the month of January, and shall
be collected by the secretary at the time of the collection by
him or her of the said excise tax. If the secretary is satisfied
that the requirements for registration of the aircraft have been
met, he or she shall thereupon issue to the owner of the aircraft a certificate of registration therefor. The secretary shall
pay to the state treasurer the registration fees collected under
this section, which registration fees shall be credited to the
aeronautics account in the transportation fund.
[Title 47 RCW—page 232]
It shall not be necessary for the registrant to provide the
secretary with originals or copies of federal certificates, permits, ratings, or licenses. The secretary shall issue certificates of registration, or such other evidences of registration or
payment of fees as he or she may deem proper; and in connection therewith may prescribe requirements for the possession and exhibition of such certificates or other evidences.
The provisions of this section shall not apply to:
(1) An aircraft owned by and used exclusively in the service of any government or any political subdivision thereof,
including the government of the United States, any state, territory, or possession of the United States, or the District of
Columbia, which is not engaged in carrying persons or property for commercial purposes;
(2) An aircraft registered under the laws of a foreign
country;
(3) An aircraft which is owned by a nonresident and registered in another state: PROVIDED, That if said aircraft
shall remain in and/or be based in this state for a period of
ninety days or longer it shall not be exempt under this section;
(4) An aircraft engaged principally in commercial flying
constituting an act of interstate or foreign commerce;
(5) An aircraft owned by the commercial manufacturer
thereof while being operated for test or experimental purposes, or for the purpose of training crews for purchasers of
the aircraft;
(6) An aircraft being held for sale, exchange, delivery,
test, or demonstration purposes solely as stock in trade of an
aircraft dealer licensed under Title 14 RCW;
(7) An aircraft based within the state that is in an unairworthy condition, is not operated within the registration
period, and has obtained a written exemption issued by the
secretary.
The secretary shall be notified within thirty days of any
change in ownership of a registered aircraft. The notification
shall contain the N, NC, NR, NL, or NX number of the aircraft, the full name and address of the former owner, and the
full name and address of the new owner. For failure to so
notify the secretary, the registration of that aircraft may be
canceled by the secretary, subject to reinstatement upon
application and payment of a reinstatement fee of ten dollars
by the new owner.
A municipality or port district that owns, operates, or
leases an airport, as defined in RCW 47.68.020, with the
intent to operate, shall require from an aircraft owner proof of
aircraft registration as a condition of leasing or selling
tiedown or hanger space for an aircraft. It is the responsibility of the lessee or purchaser to register the aircraft. The airport shall work with the aviation division to assist in its
efforts to register aircraft by providing information about
based aircraft on an annual basis as requested by the division.
[2003 c 375 § 4; 1999 c 302 § 2; 1998 c 188 § 1; 1995 c 170
§ 3; 1993 c 208 § 7; 1987 c 220 § 3; 1979 c 158 § 206; 1967
ex.s. c 9 § 8; 1955 c 150 § 11; 1949 c 49 § 12; 1947 c 165 §
25; Rem. Supp. 1949 § 10964-105. Formerly RCW
14.04.250.]
Effective date—2003 c 375: See note following RCW 47.68.233.
Severability—1987 c 220: See note following RCW 47.68.230.
Aircraft dealers: Chapter 14.20 RCW.
(2004 Ed.)
Aeronautics
Definition of terms: RCW 14.20.010, 47.68.020.
47.68.320
[1984 c 7 § 357; 1947 c 165 § 29; Rem. Supp. 1947 § 10964109. Formerly RCW 14.04.290.]
47.68.255
47.68.255 Evasive registration. A person who is
required to register an aircraft under this chapter and who
registers an aircraft in another state or foreign country evading the Washington aircraft excise tax is guilty of a gross misdemeanor. For a second or subsequent offense, the person
convicted is also subject to a fine equal to four times the
amount of avoided taxes and fees, no part of which may be
suspended or deferred. Excise taxes owed and fines assessed
will be deposited in the manner provided under RCW
46.16.010(4). [2003 c 53 § 266; 2000 c 229 § 3; 1999 c 277
§ 6; 1996 c 184 § 3; 1993 c 238 § 2.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
Effective date—2000 c 229: See note following RCW 46.16.010.
Effective date—1996 c 184: See note following RCW 46.16.010.
47.68.280
47.68.280 Investigations, hearings, etc.—Subpoenas—Compelling attendance. The department or any
officer or employee of the department designated by it has the
power to hold investigations, inquiries, and hearings concerning matters covered by this chapter including accidents in
aeronautics within this state. Hearings shall be open to the
public and, except as hereinafter provided, shall be held upon
such call or notice as the department deems advisable. The
department and every officer or employee of the department
designated by it to hold any inquiry, investigation, or hearing
has the power to administer oaths and affirmations, certify to
all official acts, issue subpoenas, and order the attendance of
witnesses and the production of papers, books and documents. In case of the failure of a person to comply with a subpoena or order issued under the authority of this section, the
department or its authorized representatives may invoke the
aid of a competent court of general jurisdiction. The court
may thereupon order the person to comply with the requirements of the subpoena or order or to give evidence touching
the matter in question. Failure to obey the order of the court
may be punished by the court as a contempt thereof. [1984 c
7 § 356; 1947 c 165 § 28; Rem. Supp. 1947 § 10964-108.
Formerly RCW 14.04.280.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.290
47.68.290 Joint hearings—Cooperation. The department may confer with or hold joint hearings with any agency
of the United States in connection with any matter arising
under this chapter or relating to the development of aeronautics.
The department may avail itself of the cooperation, services, records, and facilities of the agencies of the United
States as fully as may be practicable in the administration and
enforcement of this chapter, and shall furnish to the agencies
of the United States such services, records, and facilities as
are practicable.
The department shall report to the appropriate agency of
the United States all accidents in aeronautics in this state of
which it is informed, and shall in so far as is practicable preserve, protect, and prevent the removal of the component
parts of any aircraft involved in an accident being investigated by it until the federal agency institutes an investigation.
(2004 Ed.)
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.300
47.68.300 State and municipal agencies to cooperate.
In carrying out this chapter the department may use the facilities and services of other agencies of the state and of the
municipalities of the state to the utmost extent possible, and
the agencies and municipalities are authorized and directed to
make available their facilities and services. [1984 c 7 § 358;
1947 c 165 § 30; Rem. Supp. 1947 § 10964-110. Formerly
RCW 14.04.300.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.310
47.68.310 Enforcement of aeronautics laws. It is the
duty of the secretary, the department, the officers and
employees of the department, and every state and municipal
officer charged with the enforcement of state and municipal
laws to enforce and assist in the enforcement of this chapter
and of all other laws of this state relating to aeronautics. The
secretary and those officers or employees of the department
designated by the secretary in writing are granted police powers solely for the enforcement of state aeronautics laws and
the rules having the effect of law. [1984 c 7 § 359; 1955 c
204 § 1; 1947 c 165 § 31; Rem. Supp. 1947 § 10964-111.
Formerly RCW 14.04.310.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.320
47.68.320 Service of orders—Hearings—Review.
Every order of the department requiring performance of certain acts or compliance with certain requirements and any
denial or revocation of an approval, certificate, or license
shall set forth the reasons and shall state the acts to be done or
requirements to be met before approval by the department
will be given or the approval, license, or certificate granted or
restored, or the order modified or changed. Orders issued by
the department under this chapter shall be served upon the
persons affected either by certified mail or in person. In every
case where notice and opportunity for a hearing are required
under this chapter, the order of the department shall, on not
less than ten days notice, specify a time when and place
where the person affected may be heard, or the time within
which the person may request a hearing, and the order shall
become effective upon the expiration of the time for exercising the opportunity for a hearing, unless a hearing is held or
requested within the time provided, in which case the order
shall be suspended until the department affirms, disaffirms,
or modifies the order after a hearing has been held or default
by the person has been affected. To the extent practicable,
hearings on the orders shall be in the county where the
affected person resides or does business. Any person
aggrieved by an order of the department or by the grant,
denial, or revocation of an approval, license, or certificate
may have the action of the department reviewed by the courts
of this state under chapter 34.05 RCW. [1984 c 7 § 360; 1947
c 165 § 32; Rem. Supp. 1947 § 10964-112. Formerly RCW
14.04.320.]
Severability—1984 c 7: See note following RCW 47.01.141.
[Title 47 RCW—page 233]
47.68.330
Title 47 RCW: Public Highways and Transportation
47.68.330
47.68.330 Exchange of data, reports of violations, etc.
The department is authorized to report to the appropriate federal agencies and agencies of other states all proceedings
instituted charging violation of RCW 47.68.220 and
47.68.230 and all penalties, of which it has knowledge,
imposed upon airmen or the owners or operators of aircraft
for violations of the law of this state relating to aeronautics or
for violations of the rules, regulations, or orders of the department. The department is authorized to receive reports of penalties and other data from agencies of the federal government
and other states and, when necessary, to enter into agreements with federal agencies and the agencies of other states
governing the delivery, receipt, exchange, and use of reports
and data. The department may make the reports and data of
the federal agencies, the agencies of other states, and the
courts of this state available, with or without request therefor,
to any and all courts of this state. [1983 c 3 § 146; 1947 c 165
§ 33; Rem. Supp. 1947 § 10964-113. Formerly RCW
14.04.330.]
structures required to be marked by federal regulations.
[1983 c 3 § 147; 1961 c 263 § 4. Formerly RCW 14.04.360.]
47.68.380
47.68.380 Search and rescue. The aviation division is
responsible for the conduct and management of all aerial
search and rescue within the state. This includes search and
rescue efforts involving aircraft and airships. The division is
also responsible for search and rescue activities involving
electronic emergency signaling devices such as emergency
locater transmitters (ELT's) and emergency position indicating radio beacons (EPIRB's). [1995 c 153 § 1.]
47.68.900
47.68.900 Severability—1947 c 165. If any provision
of this act or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect
the provisions or application of this act which can be given
effect without the invalid provisions or application, and to
this end the provisions of this act are declared to be severable.
[1947 c 165 § 35. Formerly RCW 14.04.900.]
47.68.340
47.68.340 Hazardous structures and obstacles—
Marking—Hearing to determine hazard. A structure or
obstacle that obstructs the air space above ground or water
level, when determined by the department after a hearing to
be a hazard or potential hazard to the safe flight of aircraft,
shall be plainly marked, illuminated, painted, lighted, or designated in a manner to be approved in accordance with the
general rules of the department so that the structure or obstacle will be clearly visible to airmen. In determining which
structures or obstacles constitute a safety hazard, or a hazard
to flight, the department shall take into account those obstacles located at a river, lake, or canyon crossing, and in other
low-altitude flight paths usually traveled by aircraft including, but not limited to, airport areas and runway departure and
approach areas as defined by federal air regulations. [1995 c
153 § 2; 1984 c 7 § 361; 1961 c 263 § 2. Formerly RCW
14.04.340.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.350
47.68.350 Hazardous structures and obstacles—
Reporting location—Subpoenas. The secretary may
require owners, operators, lessees, or others having the control or management of structures or obstacles over one hundred fifty feet above ground or water level and that are or may
become a hazard to air flight to report the location of the
existing or proposed structures or obstacles to the department. For that purpose the secretary may issue subpoenas and
subpoenas duces tecum returnable within twenty days to the
department. If a person refuses to obey the secretary's subpoena, the department may certify to the superior court all
facts of the refusal. The court shall summarily hear evidence
on the refusal, and, if the evidence warrants, punish the person refusing in the same manner and to the same extent as a
contempt committed before the court. [1984 c 7 § 362; 1961
c 263 § 3. Formerly RCW 14.04.350.]
Severability—1984 c 7: See note following RCW 47.01.141.
47.68.360
47.68.360 Hazardous structures and obstacles—
Exemption of structures required by federal law to be
marked. RCW 47.68.340 and 47.68.350 shall not apply to
[Title 47 RCW—page 234]
Chapter 47.72
Chapter 47.72 RCW
NAVIGATION CANALS
(Formerly: Chapter 91.12 RCW, Canal commission)
Sections
47.72.010
47.72.050
47.72.060
Declaration of purpose.
Powers and duties.
"Canal" defined.
47.72.010
47.72.010 Declaration of purpose. The purposes of
this chapter are to aid commerce and navigation, including
the development of recreational facilities related thereto, and
to otherwise promote the general welfare by the development
of navigation canals within the boundaries of the state of
Washington. [1965 ex.s. c 123 § 1. Formerly RCW
91.12.010.]
47.72.050
47.72.050 Powers and duties. In its capacity as successor to the canal commission, the department of transportation
may:
(1) Adopt rules and regulations necessary to carry out the
purposes of this chapter.
(2) Make such investigations, surveys, and studies it
deems necessary to determine the feasibility of the development of a navigation canal, or systems of navigation canals
within the state of Washington.
(3) Construct, maintain, and/or operate any navigation
canal, or navigation canal systems deemed feasible by the
department of transportation.
(4) Acquire by gift, purchase, or condemnation from any
person, municipal, public, or private corporation, or the state
of Washington, or lease from the United States of America,
any lands, rights of way, easements, or property rights in,
over, or across lands or waters necessary for the construction,
operation, or maintenance of any navigation canal, or navigation canal system. The acquisition of such rights is for a public use. The exercise of the right of eminent domain shall be
in the manner provided by chapter 8.04 RCW, and all actions
initiated thereunder shall be brought in the name of the
department of transportation.
(2004 Ed.)
Multistate Highway Transportation Agreement
(5) Hold public hearings. Prior to a determination of feasibility for any proposed project, the department shall hold a
public hearing so that members of the public may present
their views thereon.
(6) Accept and expend moneys appropriated by the legislature or received from any public or private source, including the federal government, in carrying out the purposes of
this chapter.
(7) Negotiate and cooperate with the United States of
America for the purpose of inducing the United States to
undertake the construction, operation, or maintenance of any
navigation canal, or navigation canal system provided for in
this chapter.
(8) As a local sponsor cooperate, contract, and otherwise
fully participate on behalf of the state of Washington with the
United States of America, in any study relating to a determination of feasibility of a navigation canal or navigation canal
system, and in any project relating to the construction, operation, or maintenance of a navigation canal, or navigation
canal system to be undertaken by the United States of America.
The authority granted herein includes, but is not limited
to, contributing such moneys to the United States of America
as may be required and appropriated for that purpose by the
legislature and furnishing without cost to the United States of
America all lands, easements, and rights of way, performing
all necessary alterations to utilities arising from any project,
and holding the United States of America free from any
claims for damages arising out of the construction of any
project. [1977 ex.s. c 151 § 75; 1965 ex.s. c 123 § 5. Formerly RCW 91.12.050.]
47.72.060
47.72.060 "Canal" defined. For the purposes of this
chapter, "canal" is defined as any waterway for navigation
created by construction of reservoirs or construction of channels by excavation in dry ground, in streams, rivers or in tidal
waters and any existing waterway incorporated into such a
canal and including any appurtenant features necessary for
operation and maintenance of the canal. [1965 ex.s. c 123 §
6. Formerly RCW 91.12.060.]
Chapter 47.74
Chapter 47.74 RCW
MULTISTATE HIGHWAY
TRANSPORTATION AGREEMENT
Sections
47.74.010
47.74.020
Multistate Highway Transportation Agreement enacted, terms.
Appointment of delegates to represent state.
47.74.010
47.74.010 Multistate Highway Transportation
Agreement enacted, terms. The Multistate Highway Transportation Agreement is hereby enacted into law and entered
into with all other jurisdictions legally joining therein as follows:
MULTISTATE HIGHWAY
TRANSPORTATION AGREEMENT
Pursuant to and in conformity with the laws of their
respective jurisdictions, the participating jurisdictions, acting
(2004 Ed.)
47.74.010
by and through their officials lawfully authorized to execute
this agreement, do mutually agree as follows:
ARTICLE I
Findings and Purposes
SECTION 1. Findings. The participating jurisdictions
find that:
(a) The expanding regional economy depends on
expanding transportation capacity;
(b) Highway transportation is the major mode for movement of people and goods in the western states;
(c) Uniform application in the West of more adequate
vehicle size and weight standards will result in a reduction of
pollution, congestion, fuel consumption, and related transportation costs, which are necessary to permit increased productivity;
(d) A number of western states, already having adopted
substantially the 1964 Bureau of Public Roads recommended
vehicle size and weight standards, still find current federal
limits more restrictive;
(e) The 1974 revision of federal law (23 U.S.C. 127) did
not contain any substantial improvements for vehicle size and
weight standards in the western states and deprives states of
interstate matching money if vehicle weights and widths are
increased, even though the interstate system is nearly ninetytwo percent complete; and
(f) The participating jurisdictions are most capable of
developing vehicle size and weight standards most appropriate for the regional economy and transportation requirements, consistent with and in recognition of principles of
highway safety.
SECTION 2. Purposes. The purposes of this agreement
are to:
(a) Adhere to the principle that each participating jurisdiction should have the freedom to develop vehicle size and
weight standards that it determines to be most appropriate to
its economy and highway system;
(b) Establish a system authorizing the operation of vehicles traveling between two or more participating jurisdictions
at more adequate size and weight standards;
(c) Promote uniformity among participating jurisdictions
in vehicle size and weight standards on the basis of the objectives set forth in this agreement;
(d) Secure uniformity insofar as possible, of administrative procedures in the enforcement of recommended vehicle
size and weight standards;
(e) Provide means for the encouragement and utilization
of research which will facilitate the achievement of the foregoing purposes, with due regard for the findings set forth in
section 1 of this article.
ARTICLE II
Definitions
SECTION 1. As used in this agreement:
(a) "Designated representative" means a legislator or
other person authorized to represent the jurisdiction;
(b) "Jurisdiction" means a state of the United States or
the District of Columbia;
(c) "Vehicle" means any vehicle as defined by statute to
be subject to size and weight standards which operates in two
or more participating jurisdictions.
[Title 47 RCW—page 235]
47.74.010
Title 47 RCW: Public Highways and Transportation
ARTICLE III
General Provisions
SECTION 1. Qualifications for Membership. Participation in this agreement is open to jurisdictions which subscribe
to the findings, purposes, and objectives of this agreement
and will seek legislation necessary to accomplish these objectives.
SECTION 2. Cooperation. The participating jurisdictions, working through their designated representatives, shall
cooperate and assist each other in achieving the desired goals
of this agreement pursuant to appropriate statutory authority.
SECTION 3. Effect of Headings. Article and section
headings contained herein shall not be deemed to govern,
limit, modify, or in any manner affect the scope, meaning, or
intent of the provisions of any article or section hereof.
SECTION 4. Vehicle Laws and Regulations. This agreement shall not authorize the operation of a vehicle in any participating jurisdiction contrary to the laws or regulations
thereof.
SECTION 5. Interpretation. The final decision regarding
interpretation of questions at issue relating to this agreement
shall be reached by unanimous joint action of the participating jurisdictions, acting through the designated representatives. Results of all such actions shall be placed in writing.
SECTION 6. Amendment. This agreement may be
amended by unanimous joint action of the participating jurisdictions, acting through the officials thereof authorized to
enter into this agreement, subject to the requirements of section 4, article III. Any amendment shall be placed in writing
and become a part hereof.
SECTION 7. Restrictions, Conditions, or Limitations.
Any jurisdiction entering this agreement shall provide each
other participating jurisdiction with a list of any restriction,
condition, or limitation on the general terms of this agreement, if any.
SECTION 8. Additional Jurisdictions. Additional jurisdictions may become members of this agreement by signing
and accepting the terms of the agreement.
ARTICLE IV
Cooperating Committee
SECTION 1. Pursuant to section 2, article III, the designated representatives of the participating jurisdictions shall
constitute a committee which shall have the power to:
(a) Collect, correlate, analyze, and evaluate information
resulting or derivable from research and testing activities in
relation to vehicle size and weight related matters;
(b) Recommend and encourage the undertaking of
research and testing in any aspect of vehicle size and weight
or related matter when, in their collective judgment, appropriate or sufficient research or testing has not been undertaken;
(c) Recommend changes in law or policy with emphasis
on compatibility of laws and uniformity of administrative
rules or regulations which would promote effective governmental action or coordination in the field of vehicle size and
weight related matters.
SECTION 2. Each participating jurisdiction shall be
entitled to one vote only. No action of the committee shall be
[Title 47 RCW—page 236]
binding unless a majority of the total number of votes cast by
participating jurisdictions are in favor thereof.
SECTION 3. The committee shall meet at least once
annually and shall elect, from among its members, a chairman, a vice-chairman, and a secretary.
SECTION 4. The committee shall submit annually to the
legislature of each participating jurisdiction, no later than
November 1st, a report setting forth the work of the committee during the preceding year and including recommendations developed by the committee. The committee may submit such additional reports as it deems appropriate or desirable. Copies of all such reports shall be made available to the
Transportation Committee of the Western Conference, Council of State Governments, and to the Western Association of
State Highway and Transportation Officials.
ARTICLE V
Objectives of the Participating Jurisdictions
SECTION 1. Objectives. The participating jurisdictions
hereby declare that:
(a) It is the objective of the participating jurisdictions to
obtain more efficient and more economical transportation by
motor vehicles between and among the participating jurisdictions by encouraging the adoption of standards that will, as
minimums, allow the operation on all state highways, except
those determined through engineering evaluation to be inadequate, with a single-axle weight of 20,000 pounds, a tandem-axle weight of 34,000 pounds, and a gross vehicle or
combination weight of that resulting from application of the
formula:
W
W
=
=
L
=
N
where
=
500 ((LN/N - 1) + 12N + 36)
maximum weight in pounds carried on
any group of two or computed to nearest 500 pounds.
distance in feet between the extremes
of any group of two or more consecutive axles.
number of axles in group under consideration.
(b) It is the further objective of the participating jurisdictions that in the event the operation of a vehicle or combination of vehicles according to the provisions of subsection (a)
of this section would result in withholding or forfeiture of
federal-aid funds pursuant to section 127, title 23, U.S. Code,
the operation of such vehicle or combination of vehicles at
axle and gross weights within the limits set forth in subsection (a) of this section will be authorized under special permit
authority by each participating jurisdiction which could
legally issue such permits prior to July 1, 1956, provided all
regulations and procedures related to such issuance in effect
as of July 1, 1956, are adhered to.
(c) The objectives of subsections (a) and (b) of this section relate to vehicles or combinations of vehicles in regular
operation, and the authority of any participating jurisdiction
to issue special permits for the movement of any vehicle or
combinations of vehicles having dimensions and/or weights
in excess of the maximum statutory limits in each participating jurisdiction will not be affected.
(d) It is the further objective of the participating jurisdictions to facilitate and expedite the operation of any vehicle or
(2004 Ed.)
Rail Freight Service
combination of vehicles between and among the participating
jurisdictions under the provisions of subsection (a) or (b) of
this section, and to that end the participating jurisdictions
hereby agree, through their designated representatives, to
meet and cooperate in the consideration of vehicle size and
weight related matters including, but not limited to, the
development of: uniform enforcement procedures; additional vehicle size and weight standards; operational standards; agreements or compacts to facilitate regional application and administration of vehicle size and weight standards;
uniform permit procedures; uniform application forms; rules
and regulations for the operation of vehicles, including equipment requirements, driver qualifications, and operating practices; and such other matters as may be pertinent.
(e) In recognition of the limited prospects of federal revision of section 127, title 23, U.S. Code, and in order to protect
participating jurisdictions against any possibility of withholding or forfeiture of federal-aid highway funds, it is the
further objective of the participating jurisdictions to secure
congressional approval of this agreement and, specifically of
the vehicle size and weight standards set forth in subsection
(a) of this section.
(f) In recognition of desire for a degree of national uniformity of size and weight regulations, it is the further objective to encourage development of broad, uniform size and
weight standards on a national basis, and further that procedures adopted under this agreement be compatible with
national standards.
ARTICLE VI
Entry Into Force and Withdrawal
SECTION 1. This agreement shall enter into force when
enacted into law by any two or more jurisdictions. Thereafter,
this agreement shall become effective as to any other jurisdiction upon its enactment thereof, except as otherwise provided in section 8, article III.
SECTION 2. Any participating jurisdiction may withdraw from this agreement by canceling the same, but no such
withdrawal shall take effect until thirty days after the designated representative of the withdrawing jurisdiction has
given notice in writing of the withdrawal to all other participating jurisdictions.
ARTICLE VII
Construction and Severability
SECTION 1. This agreement shall be liberally construed
so as to effectuate the purposes thereof.
SECTION 2. The provisions of this agreement shall be
severable and if any phrase, clause, sentence, or provision of
this agreement is declared to be contrary to the constitution of
any participating jurisdiction or the applicability thereto to
any government, agency, person, or circumstance is held
invalid, the validity of the remainder of this agreement shall
not be affected thereby. If this agreement shall be held contrary to the constitution of any jurisdiction participating
herein, the agreement shall remain in full force and effect as
to the jurisdictions affected as to all severable matters.
(2004 Ed.)
47.76.200
ARTICLE VIII
Filing of Documents
SECTION 1. A copy of this agreement, its amendments,
and rules or regulations promulgated thereunder and interpretations thereof shall be filed in the highway department in
each participating jurisdiction and shall be made available for
review by interested parties.
ARTICLE IX
Existing Statutes Not Repealed
SECTION 1. All existing statutes prescribing weight and
size standards and all existing statutes relating to special permits shall continue to be of force and effect until amended or
repealed by law.
ARTICLE X
State Government Departments
Authorized to Cooperate with Cooperating Committee
SECTION 1. Within appropriations available therefor,
the departments, agencies, and officers of the government of
this state shall cooperate with and assist the cooperating committee within the scope contemplated by article IV, section 1
(a) and (b) of the agreement. The departments, agencies, and
officers of the government of this state are authorized generally to cooperate with said cooperating committee. [1983 c
82 § 1.]
47.74.020 Appointment of delegates to represent
state. The chairman of the legislative transportation committee shall appoint a delegate and such alternates as may be
appropriate to represent the state on the cooperating committee established by the Multistate Highway Transportation
Agreement. [1983 c 82 § 2.]
47.74.020
Chapter 47.76
Chapter 47.76 RCW
RAIL FREIGHT SERVICE
Sections
47.76.200
47.76.210
47.76.220
47.76.230
47.76.240
47.76.250
47.76.270
47.76.280
47.76.290
47.76.300
47.76.310
47.76.320
47.76.330
47.76.340
47.76.350
47.76.400
47.76.410
47.76.420
47.76.430
47.76.440
47.76.450
47.76.900
Legislative findings.
State freight rail program.
State rail plan—Contents.
Freight rail planning.
Rail preservation program.
Essential rail assistance account—Purposes.
Essential rail banking account merged into essential rail assistance account.
Sale or lease for use as rail service—Time limit.
Sale or lease for other use—Authorized buyers, notice, terms,
deed, deposit of moneys.
Sale for other use—Governmental entity.
Rent or lease of lands.
Sale at public auction.
Eminent domain exemptions.
Evaluating program performance.
Monitoring federal rail policies.
Produce railcar pool—Findings—Intent.
Produce railcar pool—Definition.
Produce railcar pool—Departmental authority.
Produce railcar pool—Funding.
Produce railcar pool—Management.
Produce railcar pool account.
Captions not law.
47.76.200
47.76.200 Legislative findings. The legislature finds
that a balanced multimodal transportation system is required
to maintain the state's commitment to the growing mobility
[Title 47 RCW—page 237]
47.76.210
Title 47 RCW: Public Highways and Transportation
needs of its citizens and commerce. The state's freight rail
system, including branch lines, mainlines, rail corridors, terminals, yards, and equipment, is an important element of this
multimodal system. Washington's economy relies heavily
upon the freight rail system to ensure movement of the state's
agricultural, chemical, and natural resources and manufactured products to local, national, and international markets
and thereby contributes to the economic vitality of the state.
Since 1970, Washington has lost over one-third of its rail
miles to abandonment and bankruptcies. The combination of
rail abandonments and rail system capacity constraints may
alter the delivery to market of many commodities. In addition, the resultant motor vehicle freight traffic increases the
burden on state highways and county roads. In many cases,
the cost of maintaining and upgrading the state highways and
county roads exceeds the cost of maintaining rail freight service. Thus, the economy of the state will be best served by a
policy of maintaining and encouraging a healthy rail freight
system by creating mechanisms that keep rail freight lines
operating if the benefits of the service outweigh the cost.
Recognizing the implications of this trend for freight
mobility and the state's economic future, the legislature finds
that better freight rail planning, better cooperation to preserve
rail lines, and increased financial assistance from the state are
necessary to maintain and improve the freight rail system
within the state. [1995 c 380 § 1; 1993 c 224 § 1; 1983 c 303
§ 4. Formerly RCW 47.76.010.]
Severability—1983 c 303: See RCW 36.60.905.
47.76.210 State freight rail program. The Washington state department of transportation shall implement a state
freight rail program that supports the freight rail service
objectives identified in the state's multimodal transportation
plan required under chapter 47.06 RCW. The support may be
in the form of projects and strategies that support branch lines
and light-density lines, provide access to ports, maintain adequate mainline capacity, and preserve or restore rail corridors
and infrastructure. [1995 c 380 § 2; 1990 c 43 § 2. Formerly
RCW 47.76.110.]
47.76.210
Construction—Severability—Headings—1990 c 43: See notes following RCW 81.100.010.
47.76.220 State rail plan—Contents. (1) The department of transportation shall prepare and periodically update a
state rail plan, the objective of which is to identify, evaluate,
and encourage essential rail services. The plan shall:
(a) Identify and evaluate mainline capacity issues;
(b) Identify and evaluate port-to-rail access and congestion issues;
(c) Identify and evaluate those rail freight lines that may
be abandoned or have recently been abandoned;
(d) Quantify the costs and benefits of maintaining rail
service on those lines that are likely to be abandoned;
(e) Establish priorities for determining which rail lines
should receive state support. The priorities should include the
anticipated benefits to the state and local economy, the anticipated cost of road and highway improvements necessitated
by the abandonment or capacity constraints of the rail line,
the likelihood the rail line receiving funding can meet operating costs from freight charges, surcharges on rail traffic, and
other funds authorized to be raised by a county or port dis47.76.220
[Title 47 RCW—page 238]
trict, and the impact of abandonment or capacity constraints
on changes in energy utilization and air pollution;
(f) Identify and describe the state's rail system;
(g) Prepare a state freight rail system map;
(h) Identify and evaluate rail commodity flows and traffic types;
(i) Identify lines and corridors that have been rail banked
or preserved; and
(j) Identify and evaluate other issues affecting the state's
rail traffic.
(2) The state rail plan may be prepared in conjunction
with the rail plan prepared by the department pursuant to the
federal Railroad Revitalization and Regulatory Reform Act.
[1995 c 380 § 3; 1993 c 224 § 2; 1985 c 432 § 1; 1983 c 303
§ 5. Formerly RCW 47.76.020.]
Severability—1983 c 303: See RCW 36.60.905.
47.76.230
47.76.230 Freight rail planning. (1) The department
of transportation shall continue its responsibility for the
development and implementation of the state rail plan and
programs, and the utilities and transportation commission
shall continue its responsibility for intrastate rates, service,
and safety issues.
(2) The department of transportation shall maintain an
enhanced data file on the rail system. Proprietary annual station traffic data from each railroad and the modal use of
major shippers shall be obtained to the extent that such information is available.
(3) The department of transportation shall provide technical assistance, upon request, to state agencies and local
interests. Technical assistance includes, but is not limited to,
the following:
(a) Rail project cost-benefit analyses conducted in accordance with methodologies recommended by the Federal Railroad Administration;
(b) Assistance in the formation of county rail districts
and port districts; and
(c) Feasibility studies for rail service continuation and/or
rail service assistance.
(4) With funding authorized by the legislature, the
department of transportation, in collaboration with the
department of community, trade, and economic development,
and local economic development agencies, and other interested public and private organizations, shall develop a cooperative process to conduct community and business information programs and to regularly disseminate information on
rail matters. [1995 c 380 § 4; 1990 c 43 § 3. Formerly RCW
47.76.120.]
Construction—Severability—Headings—1990 c 43: See notes following RCW 81.100.010.
47.76.240
47.76.240 Rail preservation program. The state,
counties, local communities, ports, railroads, labor, and shippers all benefit from continuation of rail service and should
participate in its preservation. Lines that provide benefits to
the state and local jurisdictions, such as avoided roadway
costs, reduced traffic congestion, economic development
potential, environmental protection, and safety, should be
assisted through the joint efforts of the state, local jurisdictions, and the private sector.
(2004 Ed.)
Rail Freight Service
State funding for rail service, rail preservation, and corridor preservation projects must benefit the state's interests.
The state's interest is served by reducing public roadway
maintenance and repair costs, increasing economic development opportunities, increasing domestic and international
trade, preserving jobs, and enhancing safety. State funding
for projects is contingent upon appropriate local jurisdiction
and private sector participation and cooperation. Before
spending state moneys on projects the department shall seek
federal, local, and private funding and participation to the
greatest extent possible.
(1) The department of transportation shall continue to
monitor the status of the state's mainline and branchline common carrier railroads and preserved rail corridors through the
state rail plan and various analyses, and shall seek alternatives to abandonment prior to interstate commerce commission proceedings, where feasible.
(2) The utilities and transportation commission shall
intervene in interstate commerce commission proceedings on
abandonments, when necessary, to protect the state's interest.
(3) The department of transportation, in consultation
with the Washington state freight rail policy advisory committee, shall establish criteria for evaluating rail projects and
corridors of significance to the state.
(4) Local jurisdictions may implement rail service preservation projects in the absence of state participation.
(5) The department of transportation shall continue to
monitor projects for which it provides assistance. [1995 c
380 § 5; 1993 c 224 § 3; 1990 c 43 § 4. Formerly RCW
47.76.130.]
Construction—Severability—Headings—1990 c 43: See notes following RCW 81.100.010.
47.76.250
47.76.250 Essential rail assistance account—Purposes. (1) The essential rail assistance account is created in
the state treasury. Moneys in the account may be appropriated only for the purposes specified in this section.
(2) Moneys appropriated from the account to the department of transportation may be used by the department or distributed by the department to cities, county rail districts,
counties, economic development councils, and port districts
for the purpose of:
(a) Acquiring, rebuilding, rehabilitating, or improving
rail lines;
(b) Purchasing or rehabilitating railroad equipment necessary to maintain essential rail service;
(c) Constructing railroad improvements to mitigate port
access or mainline congestion;
(d) Construction of loading facilities to increase business
on light density lines or to mitigate the impacts of abandonment;
(e) Preservation, including operation, of light density
lines, as identified by the Washington state department of
transportation, in compliance with this chapter; or
(f) Preserving rail corridors for future rail purposes by
purchase of rights of way. The department shall first pursue
transportation enhancement program funds, available under
the federal surface transportation program, to the greatest
extent practicable to preserve rail corridors. Purchase of
rights of way may include track, bridges, and associated elements, and must meet the following criteria:
(2004 Ed.)
47.76.250
(i) The right of way has been identified and evaluated in
the state rail plan prepared under this chapter;
(ii) The right of way may be or has been abandoned; and
(iii) The right of way has potential for future rail service.
(3) The department or the participating local jurisdiction
is responsible for maintaining any right of way acquired
under this chapter, including provisions for drainage management, fire and weed control, and liability associated with
ownership.
(4) Nothing in this section impairs the reversionary
rights of abutting landowners, if any, without just compensation.
(5) The department, cities, county rail districts, counties,
and port districts may grant franchises to private railroads for
the right to operate on lines acquired under this chapter.
(6) The department, cities, county rail districts, counties,
and port districts may grant trackage rights over rail lines
acquired under this chapter.
(7) If rail lines or rail rights of way are used by county
rail districts, port districts, state agencies, or other public
agencies for the purposes of rail operations and are later
abandoned, the rail lines or rail rights of way cannot be used
for any other purposes without the consent of the underlying
fee title holder or reversionary rights holder, or until compensation has been made to the underlying fee title holder or
reversionary rights holder.
(8) The department of transportation shall develop criteria for prioritizing freight rail projects that meet the minimum
eligibility requirements for state assistance under RCW
47.76.240. The department shall develop criteria in consultation with the Washington state freight rail policy advisory
committee. Project criteria should consider the level of local
financial commitment to the project as well as cost/benefit
ratio. Counties, local communities, railroads, shippers, and
others who benefit from the project should participate financially to the greatest extent practicable.
(9) Moneys received by the department from franchise
fees, trackage rights fees, and loan payments shall be redeposited in the essential rail assistance account. Repayment of
loans made under this section shall occur within a period not
longer than fifteen years, as set by the department. The repayment schedule and rate of interest, if any, shall be determined
before the distribution of the moneys.
(10) The state shall maintain a contingent interest in any
equipment, property, rail line, or facility that has outstanding
grants or loans. The owner may not use the line as collateral,
remove track, bridges, or associated elements for salvage, or
use it in any other manner subordinating the state's interest
without permission from the department.
(11) Moneys distributed under this chapter should be
provided as loans wherever practicable. Except as provided
by section 3, chapter 73, Laws of 1996, for improvements on
or to privately owned railroads, railroad property, or other
private property, moneys distributed shall be provided solely
as loans. [1996 c 73 § 2; 1995 c 380 § 6; 1993 c 224 § 4; 1991
sp.s. c 13 § 22; 1991 c 363 § 125; 1990 c 43 § 11. Prior: 1985
c 432 § 2; 1985 c 57 § 64; 1983 c 303 § 6. Formerly RCW
47.76.030.]
Effective date—1996 c 73: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state gov[Title 47 RCW—page 239]
47.76.270
Title 47 RCW: Public Highways and Transportation
ernment and its existing public institutions, and takes effect immediately
[March 13, 1996]." [1996 c 73 § 4.]
Effective dates—Severability—1991 sp.s. c 13: See notes following
RCW 18.08.240.
Purpose—Captions not law—1991 c 363: See notes following RCW
2.32.180.
Construction—Severability—Headings—1990 c 43: See notes following RCW 81.100.010.
Effective date—1985 c 57: See note following RCW 18.04.105.
Severability—1983 c 303: See RCW 36.60.905.
County rail districts: Chapter 36.60 RCW.
Port districts, acquisition and operation of facilities: RCW 53.08.020.
47.76.270 Essential rail banking account merged into
essential rail assistance account. The essential rail banking
account is merged into the essential rail assistance account
created under RCW 47.76.250. Any appropriations made to
the essential rail banking account are transferred to the essential rail assistance account, and are subject to the restrictions
of that account. [1995 c 380 § 7; 1993 c 224 § 6; 1991 sp.s. c
13 § 120; 1991 c 363 § 127; 1990 c 43 § 7. Formerly RCW
47.76.160.]
47.76.270
Effective dates—Severability—1991 sp.s. c 13: See notes following
RCW 18.08.240.
Purpose—Captions not law—1991 c 363: See notes following RCW
2.32.180.
Construction—Severability—Headings—1990 c 43: See notes following RCW 81.100.010.
47.76.280 Sale or lease for use as rail service—Time
limit. The department may sell or lease property acquired
under this chapter to a county rail district established under
chapter 36.60 RCW, a county, a port district, or any other
public or private entity authorized to operate rail service. Any
public or private entity that originally donated funds to the
department under this chapter shall receive credit against the
purchase price for the amount donated to the department, less
management costs, in the event such public or private entity
purchases the property from the department.
If no county rail district, county, port district, or other
public or private entity authorized to operate rail service purchases or leases the property within six years after its acquisition by the department, the department may sell or lease
such property in the manner provided in RCW 47.76.290.
Failing this, the department may sell or convey all such property in the manner provided in RCW 47.76.300 or 47.76.320.
[1995 c 380 § 8; 1993 c 224 § 7; 1991 sp.s. c 15 § 61; 1991 c
363 § 126; 1985 c 432 § 3. Formerly RCW 47.76.040.]
47.76.280
Construction—Severability—1991 sp.s. c 15: See note following
RCW 46.68.110.
Purpose—Captions not law—1991 c 363: See notes following RCW
2.32.180.
47.76.290 Sale or lease for other use—Authorized
buyers, notice, terms, deed, deposit of moneys. (1) If real
property acquired by the department under this chapter is not
sold to a public or private entity authorized to operate rail service within six years of its acquisition by the department, the
department may sell or lease the property at fair market value
to any of the following governmental entities or persons:
(a) Any other state agency;
(b) The city or county in which the property is situated;
47.76.290
[Title 47 RCW—page 240]
(c) Any other municipal corporation;
(d) The former owner, heir, or successor of the property
from whom the property was acquired;
(e) Any abutting private owner or owners.
(2) Notice of intention to sell under this section shall be
given by publication in one or more newspapers of general
circulation in the area in which the property is situated not
less than thirty days prior to the intended date of sale.
(3) Sales to purchasers may, at the department's option,
be for cash or by real estate contract.
(4) Conveyances made under this section shall be by
deed executed by the secretary of transportation and shall be
duly acknowledged.
(5) All moneys received under this section shall be
deposited in the essential rail banking account of the general
fund. [1993 c 224 § 8; 1991 sp.s. c 15 § 62; 1985 c 432 § 4.
Formerly RCW 47.76.050.]
Construction—Severability—1991 sp.s. c 15: See note following
RCW 46.68.110.
47.76.300
47.76.300 Sale for other use—Governmental entity.
If real property acquired by the department under this chapter
is not sold to a public or private entity authorized to operate
rail service within six years of its acquisition by the department, the department may transfer and convey the property to
the United States, its agencies or instrumentalities, to any
other state agency, or to any county or city or port district of
this state when, in the judgment of the secretary, the transfer
and conveyance is consistent with the public interest. Whenever the secretary makes an agreement for any such transfer
or conveyance, the secretary shall execute and deliver to the
grantee a deed of conveyance, easement, or other instrument,
duly acknowledged, as necessary to fulfill the terms of the
agreement. All moneys paid to the state of Washington under
this section shall be deposited in the essential rail banking
account of the general fund. [1993 c 224 § 9; 1991 sp.s. c 15
§ 63; 1985 c 432 § 5. Formerly RCW 47.76.060.]
Construction—Severability—1991 sp.s. c 15: See note following
RCW 46.68.110.
47.76.310
47.76.310 Rent or lease of lands. The department is
authorized subject to the provisions and requirements of zoning ordinances of political subdivisions of government, to
rent or lease any lands acquired under this chapter, upon such
terms and conditions as the department determines. [1993 c
224 § 10; 1991 sp.s. c 15 § 64; 1985 c 432 § 6. Formerly
RCW 47.76.070.]
Construction—Severability—1991 sp.s. c 15: See note following
RCW 46.68.110.
47.76.320
47.76.320 Sale at public auction. (1) If real property
acquired by the department under this chapter is not sold,
conveyed, or leased to a public or private entity within six
years of its acquisition by the department, the department
may, in its discretion, sell the property at public auction in
accordance with subsections (2) through (5) of this section.
(2) The department shall first give notice of the sale by
publication on the same day of the week for two consecutive
weeks, with the first publication at least two weeks before the
date of the auction, in a legal newspaper of general circulation in the area where the property to be sold is located. The
(2004 Ed.)
Rail Freight Service
notice shall be placed in both the legal notices section and the
real estate classified section of the newspaper. The notice
shall contain a description of the property, the time and place
of the auction, and the terms of the sale. The sale may be for
cash or by real estate contract.
(3) In accordance with the terms set forth in the notice,
the department shall sell the property at the public auction to
the highest and best bidder if the bid is equal to or higher than
the appraised fair market value of the property.
(4) If no bids are received at the auction or if all bids are
rejected, the department may, in its discretion, enter into
negotiations for the sale of the property or may list the property with a licensed real estate broker. No property may be
sold by negotiations or through a broker for less than the
property's appraised fair market value. Any offer to purchase
real property under this subsection shall be in writing and
may be rejected at any time before written acceptance by the
department.
(5) Conveyances made under this section shall be by
deed executed by the secretary of transportation and shall be
duly acknowledged.
(6) All moneys received under this section shall be
deposited in the essential rail banking account of the general
fund. [1993 c 224 § 11; 1991 sp.s. c 15 § 65; 1985 c 432 § 7.
Formerly RCW 47.76.080.]
Construction—Severability—1991 sp.s. c 15: See note following
RCW 46.68.110.
47.76.330
47.76.330 Eminent domain exemptions. Transfers of
ownership of property acquired under this chapter are exempt
from chapters 8.25 and 8.26 RCW. [1993 c 224 § 12; 1991
sp.s. c 15 § 66; 1985 c 432 § 8. Formerly RCW 47.76.090.]
Construction—Severability—1991 sp.s. c 15: See note following
RCW 46.68.110.
47.76.340
47.76.340 Evaluating program performance. The
department shall evaluate the state freight rail program performance at the end of six years (in 1996) with respect to past
and current conditions and future needs. The results of this
evaluation shall be presented to the legislative transportation
committee. [1993 c 224 § 13; 1990 c 43 § 8. Formerly RCW
47.76.170.]
Construction—Severability—Headings—1990 c 43: See notes following RCW 81.100.010.
47.76.440
model established by the Washington Grain Train program
has been successful in serving the shipping needs of the
wheat industry.
It is, therefore, the intent of the legislature to authorize
and direct the Washington department of transportation to
develop a railcar program for Washington's perishable commodity industries to be known as the Washington Produce
Railcar Pool. This railcar program should be modeled from
the Washington Grain Train program, but be made flexible
enough to work with entities outside state government in
order to fulfill its mission, including, but not limited to, the
federal and local governments, commodity commissions, and
private entities. [2003 c 191 § 1.]
47.76.410
47.76.410 Produce railcar pool—Definition. As used
in RCW 47.76.400 through 47.76.450 "short line railroad"
means a Class II or Class III railroad as defined by the United
States Surface Transportation Board. [2003 c 191 § 2.]
47.76.420
47.76.420 Produce railcar pool—Departmental
authority. In addition to powers otherwise granted by law,
the department may establish a Washington Produce Railcar
Pool to promote viable, cost-effective rail service for Washington produce, including but not limited to apples, onions,
pears, and potatoes, both processed and fresh.
To the extent that funds are appropriated, the department
may:
(1) Operate the Washington Produce Railcar Pool program while working in close coordination with the department of agriculture, interested commodity commissions, port
districts, and other interested parties;
(2) For the purposes of this program:
(a) Purchase or lease new or used refrigerated railcars;
(b) Accept donated refrigerated railcars; and
(c) Refurbish and remodel the railcars;
(3) Hire, in consultation with affected stakeholders,
including but not limited to short line railroads, commodity
commissions, and port districts, a transportation management
firm to perform the function outlined in RCW 47.76.440; and
(4) Contribute the efforts of a short line rail-financing
expert to find funding for the project to help interested short
line railroads in this state to accomplish the necessary operating arrangements once the railcars are ready for service.
[2003 c 191 § 3.]
47.76.350
47.76.350 Monitoring federal rail policies. The
department of transportation shall continue to monitor federal
rail policies and congressional action and communicate to
Washington's congressional delegation and federal transportation agencies the need for a balanced transportation system
and associated funding. [1990 c 43 § 10. Formerly RCW
47.76.190.]
Construction—Severability—Headings—1990 c 43: See notes following RCW 81.100.010.
47.76.430
47.76.430 Produce railcar pool—Funding. To the
extent that funds are appropriated, the department shall fund
the program as follows: The department may accept funding
from the federal government, or other public or private
sources, to purchase or lease new or used railcars and to
refurbish and remodel the railcars as needed. Nothing in this
section precludes other entities, including but not limited to
short line railroads, from performing the remodeling under
RCW 47.76.400 through 47.76.450. [2003 c 191 § 4.]
47.76.400
47.76.400 Produce railcar pool—Findings—Intent.
The legislature finds that an actively coordinated and cooperatively facilitated railcar pool for transportation of perishable
agricultural commodities is necessary for the continued viability and competitiveness of Washington's agricultural
industry. The legislature also finds that the rail transportation
(2004 Ed.)
47.76.440
47.76.440 Produce railcar pool—Management. (1)
The transportation management firm hired under RCW
47.76.420(3) shall manage the day-to-day operations of the
railcars, such as monitoring the location of the cars, returning
them to this state, distributing them, arranging for pretrips
[Title 47 RCW—page 241]
47.76.450
Title 47 RCW: Public Highways and Transportation
and repairs, and arranging for per diem, mileage allowances,
and other freight billing charges with the railroads.
(2) The railcar pool must be managed over the life of the
railcars so that the railcars will be distributed to railroads and
port districts around the state for produce loadings as market
conditions warrant or to other users, including out-of-state
users by contractual agreement, during times of excess capacity.
(3) To maximize railcar availability and use, the department or the transportation management firm may make
agreements with the transcontinental railroad systems to pool
Washington-owned or Washington-managed railcars with
those of the railroads. In such instances, the railroad must
agree to provide immediately an equal number of railcars to
the Washington railcar pool.
(4) The department shall act in an oversight role to verify
that the railcar pool is managed in accordance with subsections (2) and (3) of this section. [2003 c 191 § 5.]
47.76.450
47.76.450 Produce railcar pool account. The produce
railcar pool account is created in the custody of the state treasurer. All receipts from per diem charges, mileage charges,
and freight billing charges paid by railroads and shippers that
use the railcars in the Washington Produce Railcar Pool must
be deposited into the account. Expenditures from the account
may be used only for the purposes of RCW 47.76.400
through 47.76.440. Only the secretary of transportation or
the secretary's designee may authorize expenditures from the
account. The account is subject to allotment procedures
under chapter 43.88 RCW, but an appropriation is not
required for expenditures. [2003 c 191 § 6.]
47.76.900
47.76.900 Captions not law. Section captions used in
RCW 47.76.400 through 47.76.450 are not part of the law.
[2003 c 191 § 8.]
Chapter 47.78
Chapter 47.78 RCW
HIGH CAPACITY
TRANSPORTATION DEVELOPMENT
(Formerly: Rail service development)
Sections
47.78.010
High capacity transportation account.
47.78.010
47.78.010 High capacity transportation account.
There is hereby established in the state treasury the high
capacity transportation account. Money in the account shall
be used, after appropriation, for local high capacity transportation purposes including rail freight, activities associated
with freight mobility, and commute trip reduction activities.
[1997 c 457 § 513; (1995 2nd sp.s. c 14 § 528 expired June
30, 1997); 1991 sp.s. c 13 §§ 66, 121; 1990 c 43 § 47; 1987 c
428 § 1.]
Severability—1997 c 457: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1997 c 457 § 701.]
Effective date—1997 c 457: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[May 20, 1997]." [1997 c 457 § 702.]
[Title 47 RCW—page 242]
Expiration date—1995 2nd sp.s. c 14 §§ 511-523, 528-533: See note
following RCW 43.105.017.
Effective dates—1995 2nd sp.s. c 14: See note following RCW
43.105.017.
Severability—1995 2nd sp.s. c 14: See note following RCW
43.105.017.
Effective dates—Severability—1991 sp.s. c 13: See notes following
RCW 18.08.240.
Construction—Severability—Headings—1990 c 43: See notes following RCW 81.100.010.
Effective date—1987 c 428: "This act is necessary for the immediate
preservation of the public peace, health, and safety, the support of the state
government and its existing public institutions, and shall take effect July 1,
1987." [1987 c 428 § 4.]
Chapter 47.79 RCW
HIGH-SPEED GROUND TRANSPORTATION
Chapter 47.79
Sections
47.79.010
47.79.020
47.79.030
47.79.040
47.79.050
47.79.060
47.79.070
47.79.110
47.79.120
47.79.130
47.79.140
47.79.150
47.79.900
Legislative declaration.
Program established—Goals.
Project priority—Funding sources.
Rail passenger plan.
Facility acquisition and management.
Gifts.
Adjacent real property.
King Street station—Findings.
King Street station—Acquisition.
King Street station—Department's powers and duties.
King Street station—Leases and contracts for multimodal terminal.
King Street railroad station facility account.
Effective date—1993 c 381.
47.79.010
47.79.010 Legislative declaration. The legislature recognizes that major intercity transportation corridors in this
state are becoming increasingly congested. In these corridors,
population is expected to grow by nearly forty percent over
the next twenty years, while employment will grow by nearly
fifty percent. The estimated seventy-five percent increase in
intercity travel demand must be accommodated to ensure
state economic vitality and protect the state's quality of life.
The legislature finds that high-speed ground transportation offers a safer, more efficient, and environmentally
responsible alternative to increasing highway capacity. Highspeed ground transportation can complement and enhance
existing air transportation systems. High-speed ground transportation can be compatible with growth management plans
in counties and cities served by such a system. Further, highspeed ground transportation offers a reliable, all-weather service capable of significant energy savings over other intercity
modes. [1993 c 381 § 1.]
47.79.020
47.79.020 Program established—Goals. The legislature finds that there is substantial public benefit to establishing a high-speed ground transportation program in this state.
The program shall implement the recommendations of the
high-speed ground transportation steering committee report
dated October 15, 1992. The program shall be administered
by the department of transportation in close cooperation with
the utilities and transportation commission and affected cities and counties.
The high-speed ground transportation program shall
have the following goals:
(2004 Ed.)
High-Speed Ground Transportation
(1) Implement high-speed ground transportation service
offering top speeds over 150 m.p.h. between Everett and
Portland, Oregon by 2020. This would be accomplished by
meeting the intermediate objectives of a maximum travel
time between downtown Portland and downtown Seattle of
two hours and thirty minutes by the year 2000 and maximum
travel time of two hours by the year 2010;
(2) Implement high-speed ground transportation service
offering top speeds over 150 m.p.h. between Everett and
Vancouver, B.C. by 2025;
(3) Implement high-speed ground transportation service
offering top speeds over 150 m.p.h. between Seattle and Spokane by 2030.
The department of transportation shall, subject to legislative appropriation, implement such projects as necessary to
achieve these goals in accordance with the implementation
plans identified in RCW 47.79.030 and 47.79.040. [1993 c
381 § 2.]
47.79.030
47.79.030 Project priority—Funding sources. The
legislature finds it important to develop public support and
awareness of the benefits of high-speed ground transportation
by developing high-quality intercity passenger rail service as
a first step. This high-quality intercity passenger rail service
shall be developed through incremental upgrading of the
existing service. The department of transportation shall, subject to legislative appropriation, develop a prioritized list of
projects to improve existing passenger rail service and begin
new passenger rail service, to include but not be limited to:
(1) Improvement of depots;
(2) Improved grade crossing protection or grade crossing
elimination;
(3) Enhanced train signals to improve rail corridor
capacity and increase train speeds;
(4) Revised track geometry or additional trackage to
improve ride quality and increase train speeds; and
(5) Contract for new or improved service in accordance
with federal requirements to improve service frequency.
Service enhancements and station improvements must
be based on the extent to which local comprehensive plans
contribute to the viability of intercity passenger rail service,
including providing efficient connections with other transportation modes such as transit, intercity bus, and roadway
networks. Before spending state moneys on these projects,
the department of transportation shall seek federal, local, and
private funding participation to the greatest extent possible.
Funding priorities for station improvements must also be
based on the level of local and private in-kind and cash contributions. [1993 c 381 § 3.]
47.79.040
47.79.040 Rail passenger plan. The legislature recognizes the need to plan for the high-speed ground transportation service and the high-quality intercity rail passenger service set forth in RCW 47.79.020 and 47.79.030. The department of transportation shall, subject to legislative
appropriation, develop a rail passenger plan through the conduct of studies addressing, but not limited to, the following
areas:
(1) Refined ridership estimates;
(2004 Ed.)
47.79.110
(2) Preliminary location and environmental analysis on
new corridors;
(3) Detailed station location assessments in concert with
affected local jurisdictions;
(4) Coordination with the air transportation commission
on statewide air transportation policy and its effects on highspeed ground transportation service; and
(5) Coordination with the governments of Oregon and
British Columbia, when appropriate, on alignment, station
location, and environmental analysis. [1993 c 381 § 4.]
47.79.050
47.79.050 Facility acquisition and management. Subject to appropriation, the department is authorized to acquire
by purchase, lease, condemnation, gift, devise, bequest,
grant, or exchange, title to or any interests or rights in real
property adjacent to or used in association with state intercity
passenger rail service which may include, but are not limited
to, depots, platforms, parking areas, and maintenance facilities. The department is authorized to contract with a public or
private entity for the operation, maintenance, and/or management of these facilities. [1999 c 253 § 1.]
47.79.060
47.79.060 Gifts. Subject to appropriation, the department is authorized to accept and expend or use gifts, grants,
and donations for the benefit of any depot, platform, parking
area, maintenance facility, or other associated rail facility.
However, such an expenditure shall be for the public benefit
of the state's intercity passenger rail service. [1999 c 253 §
2.]
47.79.070
47.79.070 Adjacent real property. Subject to appropriation, the department is authorized to exercise all the powers and perform all the duties necessary, convenient, or incidental to the planning, designing, constructing, improving,
repairing, operating, and maintaining real property adjacent
to or used in association with the state intercity passenger rail
service which may include, but are not limited to, depots,
platforms, parking areas, and maintenance facilities, even if
such real property is owned or controlled by another entity.
However, any expenditure of public funds for these purposes
shall be directly related to public benefit of the state's intercity passenger rail service. The department shall enter into a
written contract with the affected real property owners to
secure the public's investment. [1999 c 253 § 3.]
47.79.110
47.79.110 King Street station—Findings. The legislature finds that a balanced, multimodal transportation system
is an essential element of the state's infrastructure, and that
effective rail passenger service is an integral part of a balanced, multimodal transportation system. The legislature further finds that the King Street railroad station is the key hub
for both Puget Sound's intermodal passenger transportation
system and the state's rail passenger system. The legislature
recognizes that the redevelopment of the King Street railroad
station depot, along with necessary and related properties, is
critical to its continued functioning as a transportation hub
and finds that innovative funding arrangements can materially assist in furthering the redevelopment at reduced public
expense. [2001 c 62 § 1.]
[Title 47 RCW—page 243]
47.79.120
Title 47 RCW: Public Highways and Transportation
Effective date—2001 c 62: "Due to the irrevocable expiration of federal and Amtrak funds critical to the redevelopment of the King Street railroad station on or before June 30, 2001, sections 1 through 6 of this act are
necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public institutions,
and take effect immediately [April 18, 2001]." [2001 c 62 § 7.]
47.79.120
47.79.120 King Street station—Acquisition. The
department may acquire, or contract to acquire, by purchase,
lease, option to lease or purchase, condemnation, gift, devise,
bequest, grant, or exchange of title, the King Street railroad
station depot located in Seattle, or any interests or rights in it,
and other real property and improvements adjacent to, or
used in association with, the King Street railroad station
depot. The property may include, but not be limited to, the
depot, platforms, parking areas, pedestrian and vehicle access
areas, and maintenance facilities. These properties, in the
aggregate, will be known as the King Street railroad station.
[2001 c 62 § 2.]
Effective date—2001 c 62: See note following RCW 47.79.110.
47.79.130
47.79.130 King Street station—Department's powers
and duties. During all periods that the department contracts
to own or lease some, or all, of the King Street railroad station
properties, the department may exercise all the powers and
perform all the duties necessary, convenient, or incidental for
planning, designing, constructing, improving, repairing, renovating, restoring, operating, and maintaining the King Street
railroad station properties. These powers also include authority to lease or sell, assign, sublease, or otherwise transfer all,
or portions of, the King Street railroad station properties for
transportation or other public or private purposes and to contract with other public or private entities for the operation,
administration, maintenance, or improvement of the King
Street railroad station properties after the department takes
possession of some, or all, of the properties, as the secretary
deems appropriate. If the department transfers any of its fee
ownership interests in the King Street railroad station properties, proceeds from the transaction must be placed in an
account that supports multimodal programs, but not into an
account restricted by Article II, section 40 of the state Constitution. [2001 c 62 § 3.]
Effective date—2001 c 62: See note following RCW 47.79.110.
47.79.140
47.79.140 King Street station—Leases and contracts
for multimodal terminal. To facilitate tax exempt financing
for the acquisition and improvement of the King Street railroad station, the department may lease from or contract with
public or private entities for the acquisition, lease, operation,
maintenance, financing, renovation, restoration, or management of some, or all, of the King Street railroad station properties as a multimodal terminal that supports the state intercity passenger rail service. The leases or contracts are not
subject to either chapter 39.94 or 43.82 RCW. The leases and
contracts will expire no later than fifty years from the time
they are executed, and at that time the department will either
receive title or have the right to receive title to the financed
property without additional obligation to compensate the
owner of those properties for the acquisition of them. The
secretary may take all actions necessary, convenient, or incidental to the financing. [2001 c 62 § 4.]
[Title 47 RCW—page 244]
Effective date—2001 c 62: See note following RCW 47.79.110.
47.79.150
47.79.150 King Street railroad station facility
account. (1) The department may establish the King Street
railroad station facility account as an interest-bearing local
account. Receipts from the sources listed in subsection (2) of
this section must be deposited into the account. Nothing in
this section is a pledge of funds deposited to the account for
repayment of tax exempt financing related to the King Street
railroad station. The department may invest funds from the
account as permitted by law and may enter into contracts with
financial advisors as deemed necessary for that purpose. Only
the secretary or the secretary's designee may authorize expenditures from the account.
(2) All funds appropriated to the King Street railroad station facility account by the legislature; all contributions, payments, grants, gifts, and donations to the account from other
public or private entities; all receipts from departmental
transactions involving capital facility sales, transfers, property leases and rents, incomes, and parking fees associated
with the King Street railroad station; as well as all investment
income associated with the account must be deposited into
the King Street railroad station facility account for purposes
specified in subsection (3) of this section.
(3) All funds deposited into the King Street railroad station facility account must be expended by the department
solely to pay the following expenses:
(a) Costs for management of the account;
(b) Purchase and acquisition costs for King Street railroad station properties;
(c) Payments, including incidental expenses, relating to
the King Street railroad station depot as required by a lease or
contract under RCW 47.79.140;
(d) Maintenance and operating costs for the King Street
railroad station properties; and
(e) Capital improvement projects initiated by the department associated with, and for the benefit of, the King Street
railroad station depot occurring after the date of the department's beneficial occupancy of the renovated King Street
railroad station depot, and for capital improvement projects
initiated at any time by the department for the benefit of King
Street railroad station properties other than the depot including, but not limited to, improvements to associated platforms,
parking areas, temporary buildings, maintenance facilities,
pedestrian access, and other improvements essential to the
operation of the station as a multimodal terminal.
(4) Nothing in this section is intended to restrict the right
of the department from otherwise funding purchase, acquisition, capital improvement, maintenance, rental, operational,
and other incidental costs relating to the King Street railroad
station from appropriations and resources that are not designated for deposit in the King Street railroad station facility
account. [2001 c 62 § 5.]
Effective date—2001 c 62: See note following RCW 47.79.110.
47.79.900
47.79.900 Effective date—1993 c 381. This act is necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its
existing public institutions, and shall take effect July 1, 1993.
[1993 c 381 § 5.]
(2004 Ed.)
Regional Transportation Planning Organizations
Chapter 47.80
Chapter 47.80 RCW
REGIONAL TRANSPORTATION
PLANNING ORGANIZATIONS
Sections
47.80.010
47.80.011
47.80.020
47.80.023
47.80.026
47.80.030
47.80.040
47.80.050
47.80.060
47.80.070
47.80.080
47.80.900
47.80.901
47.80.902
47.80.903
47.80.904
Findings—Declaration.
Legislative intent.
Regional transportation planning organizations authorized.
Organization's duties.
Comprehensive plans, transportation guidelines, and principles.
Regional transportation plan—Contents, review, use.
Transportation policy boards.
Allocation of regional transportation planning funds.
Executive board membership.
Statewide consistency.
Majority vote on state matters.
Severability—1990 1st ex.s. c 17.
Part, section headings not law—1990 1st ex.s. c 17.
Captions not part of law—1994 c 158.
Severability—1994 c 158.
Effective date—1994 c 158.
47.80.010
47.80.010 Findings—Declaration. The legislature
finds that while the transportation system in Washington is
owned and operated by numerous public jurisdictions, it
should function as one interconnected and coordinated system. Transportation planning, at all jurisdictional levels,
should be coordinated with local comprehensive plans. Further, local jurisdictions and the state should cooperate to
achieve both statewide and local transportation goals. To
facilitate this coordination and cooperation among state and
local jurisdictions, the legislature declares it to be in the
state's interest to establish a coordinated planning program
for regional transportation systems and facilities throughout
the state. [1990 1st ex.s. c 17 § 53.]
47.80.011
47.80.011 Legislative intent. The legislature recognizes that recent legislative enactments have significantly
added to the complexity of and to the potential for benefits
from integrated transportation and comprehensive planning
and that there is currently a unique opportunity for integration of local comprehensive plans and regional goals with
state and local transportation programs. Further, approaches
to transportation demand management initiatives and local
and state transportation funding can be better coordinated to
insure an efficient, effective transportation system that
insures mobility and accessibility, and addresses community
needs.
The legislature further finds that transportation and land
use share a critical relationship that policy makers can better
utilize to address regional strategies.
Prudent and cost-effective investment by the state and by
local governments in highway facilities, local streets and
arterials, rail facilities, marine facilities, nonmotorized transportation facilities and systems, public transit systems, transportation system management, transportation demand management, and the development of high capacity transit systems can help to effectively address mobility needs. Such
investment can also enhance local and state objectives for
effective comprehensive planning, economic development
strategies, and clean air policies.
The legislature finds that addressing public initiatives
regarding transportation and comprehensive planning necessitates an innovative approach. Improved integration between
(2004 Ed.)
47.80.023
transportation and comprehensive planning among public
institutions, particularly in the state's largest metropolitan
areas is considered by the state to be imperative, and to have
significant benefit to the citizens of Washington. [1994 c 158
§ 1.]
47.80.020
47.80.020 Regional transportation planning organizations authorized. The legislature hereby authorizes creation of regional transportation planning organizations within
the state. Each regional transportation planning organization
shall be formed through the voluntary association of local
governments within a county, or within geographically contiguous counties. Each organization shall:
(1) Encompass at least one complete county;
(2) Have a population of at least one hundred thousand,
or contain a minimum of three counties; and
(3) Have as members all counties within the region, and
at least sixty percent of the cities and towns within the region
representing a minimum of seventy-five percent of the cities'
and towns' population.
The state department of transportation must verify that
each regional transportation planning organization conforms
with the requirements of this section.
In urbanized areas, the regional transportation planning
organization is the same as the metropolitan planning organization designated for federal transportation planning purposes. [1990 1st ex.s. c 17 § 54.]
47.80.023
47.80.023 Organization's duties. Each regional transportation planning organization shall have the following
duties:
(1) Prepare and periodically update a transportation
strategy for the region. The strategy shall address alternative
transportation modes and transportation demand management measures in regional corridors and shall recommend
preferred transportation policies to implement adopted
growth strategies. The strategy shall serve as a guide in preparation of the regional transportation plan.
(2) Prepare a regional transportation plan as set forth in
RCW 47.80.030 that is consistent with county-wide planning
policies if such have been adopted pursuant to chapter
36.70A RCW, with county, city, and town comprehensive
plans, and state transportation plans.
(3) Certify by December 31, 1996, that the transportation
elements of comprehensive plans adopted by counties, cities,
and towns within the region reflect the guidelines and principles developed pursuant to RCW 47.80.026, are consistent
with the adopted regional transportation plan, and, where
appropriate, conform with the requirements of RCW
36.70A.070.
(4) Where appropriate, certify that county-wide planning
policies adopted under RCW 36.70A.210 and the adopted
regional transportation plan are consistent.
(5) Develop, in cooperation with the department of transportation, operators of public transportation services and
local governments within the region, a six-year regional
transportation improvement program which proposes regionally significant transportation projects and programs and
transportation demand management measures. The regional
transportation improvement program shall be based on the
[Title 47 RCW—page 245]
47.80.026
Title 47 RCW: Public Highways and Transportation
programs, projects, and transportation demand management
measures of regional significance as identified by transit
agencies, cities, and counties pursuant to RCW 35.58.2795,
35.77.010, and 36.81.121, respectively. The program shall
include a priority list of projects and programs, project segments and programs, transportation demand management
measures, and a specific financial plan that demonstrates how
the transportation improvement program can be funded. The
program shall be updated at least every two years for the
ensuing six-year period.
(6) Designate a lead planning agency to coordinate preparation of the regional transportation plan and carry out the
other responsibilities of the organization. The lead planning
agency may be a regional organization, a component county,
city, or town agency, or the appropriate Washington state
department of transportation district office.
(7) Review level of service methodologies used by cities
and counties planning under chapter 36.70A RCW to promote a consistent regional evaluation of transportation facilities and corridors.
(8) Work with cities, counties, transit agencies, the
department of transportation, and others to develop level of
service standards or alternative transportation performance
measures. [1998 c 171 § 8; 1994 c 158 § 2.]
47.80.026
47.80.026 Comprehensive plans, transportation
guidelines, and principles. Each regional transportation
planning organization, with cooperation from component cities, towns, and counties, shall establish guidelines and principles by July 1, 1995, that provide specific direction for the
development and evaluation of the transportation elements of
comprehensive plans, where such plans exist, and to assure
that state, regional, and local goals for the development of
transportation systems are met. These guidelines and principles shall address at a minimum the relationship between
transportation systems and the following factors: Concentration of economic activity, residential density, development
corridors and urban design that, where appropriate, supports
high capacity transit, freight transportation and port access,
development patterns that promote pedestrian and nonmotorized transportation, circulation systems, access to regional
systems, effective and efficient highway systems, the ability
of transportation facilities and programs to retain existing and
attract new jobs and private investment and to accommodate
growth in demand, transportation demand management, joint
and mixed use developments, present and future railroad
right-of-way corridor utilization, and intermodal connections.
Examples shall be published by the organization to assist
local governments in interpreting and explaining the requirements of this section. [1994 c 158 § 3.]
47.80.030
47.80.030 Regional transportation plan—Contents,
review, use. (1) Each regional transportation planning organization shall develop in cooperation with the department of
transportation, providers of public transportation and high
capacity transportation, ports, and local governments within
the region, adopt, and periodically update a regional transportation plan that:
[Title 47 RCW—page 246]
(a) Is based on a least cost planning methodology that
identifies the most cost-effective facilities, services, and programs;
(b) Identifies existing or planned transportation facilities, services, and programs, including but not limited to
major roadways including state highways and regional arterials, transit and nonmotorized services and facilities, multimodal and intermodal facilities, marine ports and airports, railroads, and noncapital programs including transportation
demand management that should function as an integrated
regional transportation system, giving emphasis to those
facilities, services, and programs that exhibit one or more of
the following characteristics:
(i) Crosses member county lines;
(ii) Is or will be used by a significant number of people
who live or work outside the county in which the facility, service, or project is located;
(iii) Significant impacts are expected to be felt in more
than one county;
(iv) Potentially adverse impacts of the facility, service,
program, or project can be better avoided or mitigated
through adherence to regional policies;
(v) Transportation needs addressed by a project have
been identified by the regional transportation planning process and the remedy is deemed to have regional significance;
and
(vi) Provides for system continuity;
(c) Establishes level of service standards for state highways and state ferry routes, with the exception of transportation facilities of statewide significance as defined in RCW
47.06.140. These regionally established level of service standards for state highways and state ferries shall be developed
jointly with the department of transportation, to encourage
consistency across jurisdictions. In establishing level of service standards for state highways and state ferries, consideration shall be given for the necessary balance between providing for the free interjurisdictional movement of people
and goods and the needs of local commuters using state facilities;
(d) Includes a financial plan demonstrating how the
regional transportation plan can be implemented, indicating
resources from public and private sources that are reasonably
expected to be made available to carry out the plan, and recommending any innovative financing techniques to finance
needed facilities, services, and programs;
(e) Assesses regional development patterns, capital
investment and other measures necessary to:
(i) Ensure the preservation of the existing regional transportation system, including requirements for operational
improvements, resurfacing, restoration, and rehabilitation of
existing and future major roadways, as well as operations,
maintenance, modernization, and rehabilitation of existing
and future transit, railroad systems and corridors, and nonmotorized facilities; and
(ii) Make the most efficient use of existing transportation
facilities to relieve vehicular congestion and maximize the
mobility of people and goods;
(f) Sets forth a proposed regional transportation
approach, including capital investments, service improvements, programs, and transportation demand management
(2004 Ed.)
Amtrak
measures to guide the development of the integrated, multimodal regional transportation system; and
(g) Where appropriate, sets forth the relationship of high
capacity transportation providers and other public transit providers with regard to responsibility for, and the coordination
between, services and facilities.
(2) The organization shall review the regional transportation plan biennially for currency and forward the adopted
plan along with documentation of the biennial review to the
state department of transportation.
(3) All transportation projects, programs, and transportation demand management measures within the region that
have an impact upon regional facilities or services must be
consistent with the plan and with the adopted regional growth
and transportation strategies. [1998 c 171 § 9; 1994 c 158 §
4; 1990 1st ex.s. c 17 § 55.]
47.80.040
47.80.040 Transportation policy boards. Each
regional transportation planning organization shall create a
transportation policy board. Transportation policy boards
shall provide policy advice to the regional transportation
planning organization and shall allow representatives of
major employers within the region, the department of transportation, transit districts, port districts, and member cities,
towns, and counties within the region to participate in policy
making. Any members of the house of representatives or the
state senate whose districts are wholly or partly within the
boundaries of the regional transportation planning organization are considered ex officio, nonvoting policy board members of the regional transportation planning organization.
This does not preclude legislators from becoming full-time,
voting board members. [2003 c 351 § 1; 1990 1st ex.s. c 17
§ 56.]
47.82.010
least fifty percent of the county and city local elected officials
who serve on the executive board also serve on transit agency
boards or on a regional transit authority. [1992 c 101 § 31.]
Section headings not part of law—Severability—Effective date—
1992 c 101: See RCW 81.112.900 through 81.112.902.
47.80.070
47.80.070 Statewide consistency. In order to ensure
statewide consistency in the regional transportation planning
process, the state department of transportation, in conformance with chapter 34.05 RCW, shall:
(1) In cooperation with regional transportation planning
organizations, establish minimum standards for development
of a regional transportation plan;
(2) Facilitate coordination between regional transportation planning organizations; and
(3) Through the regional transportation planning process, and through state planning efforts as required by RCW
47.01.071, identify and jointly plan improvements and strategies within those corridors important to moving people and
goods on a regional or statewide basis. [1994 c 158 § 5.]
47.80.080
47.80.080 Majority vote on state matters. When voting on matters solely affecting Washington state, a regional
transportation planning organization must obtain a majority
vote of the Washington residents serving as members of the
regional transportation planning organization before a matter
may be adopted. [2003 c 351 § 2.]
47.80.900
47.80.900 Severability—1990 1st ex.s. c 17.
RCW 36.70A.900.
See
47.80.901
47.80.901 Part, section headings not law—1990 1st
ex.s. c 17. See RCW 36.70A.901.
47.80.050
47.80.050 Allocation of regional transportation planning funds. Biennial appropriations to the department of
transportation to carry out the regional transportation planning program shall set forth the amounts to be allocated as
follows:
(1) A base amount per county for each county within
each regional transportation planning organization, to be distributed to the lead planning agency;
(2) An amount to be distributed to each lead planning
agency on a per capita basis; and
(3) An amount to be administered by the department of
transportation as a discretionary grant program for special
regional planning projects, including grants to allow counties
which have significant transportation interests in common
with an adjoining region to also participate in that region's
planning efforts. [1990 1st ex.s. c 17 § 57.]
47.80.060
47.80.060 Executive board membership. In order to
qualify for state planning funds available to regional transportation planning organizations, the regional transportation
planning organizations containing any county with a population in excess of one million shall provide voting membership on its executive board to the state transportation commission, the state department of transportation, and the three
largest public port districts within the region as determined
by gross operating revenues. It shall further assure that at
(2004 Ed.)
47.80.902
47.80.902 Captions not part of law—1994 c 158. Captions used in this act do not constitute any part of the law.
[1994 c 158 § 11.]
47.80.903
47.80.903 Severability—1994 c 158. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1994 c 158 § 12.]
47.80.904
47.80.904 Effective date—1994 c 158. This act shall
take effect July 1, 1994. [1994 c 158 § 13.]
Chapter 47.82
Chapter 47.82 RCW
AMTRAK
Sections
47.82.010
47.82.020
47.82.030
47.82.040
47.82.900
Service improvement program.
Depot upgrading.
Service extension.
Coordination with other rail systems and common carriers.
Construction—Severability—Headings—1990 c 43.
47.82.010
47.82.010 Service improvement program. The
department, in conjunction with local jurisdictions, shall
coordinate as appropriate with the designated metropolitan
[Title 47 RCW—page 247]
47.82.020
Title 47 RCW: Public Highways and Transportation
planning organizations to develop a program for improving
Amtrak passenger rail service. The program may include:
(1) Determination of the appropriate level of Amtrak
passenger rail service;
(2) Implementation of higher train speeds for Amtrak
passenger rail service, where safety considerations permit;
(3) Recognition, in the state's long-range planning process, of potential higher speed intercity passenger rail service, while monitoring socioeconomic and technological
conditions as indicators for higher speed systems; and
(4) Identification of existing intercity rail rights of way
which may be used for public transportation corridors in the
future. [1990 c 43 § 36.]
47.82.020
47.82.020 Depot upgrading. The department shall,
when feasible, assist local jurisdictions in upgrading Amtrak
depots. Multimodal use of these facilities shall be encouraged. [1990 c 43 § 37.]
47.82.030
47.82.030 Service extension. (1) The department, in
conjunction with local jurisdictions, shall coordinate as
appropriate with designated metropolitan and provincial
transportation organizations to pursue resumption of Amtrak
service from Seattle to Vancouver, British Columbia, via
Everett, Mount Vernon, and Bellingham.
(2) The department, in conjunction with local jurisdictions, shall study potential Amtrak service on the following
routes:
(a) Daytime Spokane-Wenatchee-Everett-Seattle service;
(b) Daytime Spokane-Tri-Cities-Vancouver-Portland
service;
(c) Tri-Cities-Yakima-Ellensburg-Seattle service, if the
Stampede Pass route is reopened; and
(d) More frequent Portland-Vancouver-Kelso-CentraliaOlympia-Tacoma-Seattle service or increments thereof.
[1990 c 43 § 38.]
47.82.040
47.82.040 Coordination with other rail systems and
common carriers. The department, with other state and
local agencies shall coordinate as appropriate with designated
metropolitan planning organizations to provide public information with respect to common carrier passenger transportation. This information may include maps, routes, and schedules of passenger rail service, local transit agencies, air carrie r s , p r i v a t e g r o u n d t r a n s p o r ta ti o n p r o v id e r s, a n d
international, state, and local ferry services.
The state shall continue its cooperative relationship with
Amtrak and Canadian passenger rail systems. [1990 c 43 §
39.]
47.98.030
47.98.040
47.98.041
47.98.042
47.98.043
47.98.044
47.98.045
47.98.050
47.98.060
47.98.070
47.98.080
47.98.090
Title, chapter, section headings not part of law.
Invalidity of part of title not to affect remainder.
Severability—1963 ex.s. c 3.
Severability—1965 ex.s. c 170.
Severability—1967 ex.s. c 145.
Severability—1967 c 108.
Severability—1969 ex.s. c 281.
Repeals and saving.
Emergency—1961 c 13.
Federal requirements.
Severability—1977 ex.s. c 151.
Liberal construction.
47.98.010
47.98.010 Continuation of existing law. The provisions of this title insofar as they are substantially the same as
statutory provisions repealed by this chapter, and relating to
the same subject matter, shall be construed as restatements
and continuations, and not as new enactments. Nothing in
this 1961 reenactment of this title shall be construed as authorizing any new bond issues or new or additional appropriations of moneys but the bond issue authorizations herein contained shall be construed only as continuations of bond issues
authorized by prior laws herein repealed and reenacted, and
the appropriations of moneys herein contained are continued
herein for historical purposes only and this act shall not be
construed as a reappropriation thereof and no appropriation
contained herein shall be deemed to be extended or revived
hereby and such appropriation shall lapse or shall have lapsed
in accordance with the original enactment: PROVIDED,
That this act shall not operate to terminate, extend, or otherwise affect any appropriation for the biennium commencing
July 1, 1959 and ending June 30, 1961. [1961 c 13 §
47.98.010.]
47.98.020
47.98.020 Provisions to be construed in pari materia.
The provisions of this title shall be construed in pari materia
even though as a matter of prior legislative history they were
not originally enacted in the same statute. The provisions of
this title shall also be construed in pari materia with the provisions of Title 46 RCW, and with other laws relating to highways, roads, streets, bridges, ferries and vehicles. This section shall not operate retroactively. [1961 c 13 § 47.98.020.]
47.98.030
47.98.030 Title, chapter, section headings not part of
law. Title headings, chapter headings, and section or subsection headings, as used in this title do not constitute any part of
the law. [1961 c 13 § 47.98.030.]
47.98.040
47.98.040 Invalidity of part of title not to affect
remainder. If any provision of this title, or its application to
any person or circumstance is held invalid, the remainder of
the title, or the application of the provision to other persons or
circumstances is not affected. [1961 c 13 § 47.98.040.]
47.82.900
47.82.900 Construction—Severability—Headings—
1990 c 43. See notes following RCW 81.100.010.
Chapter 47.98
Chapter 47.98 RCW
CONSTRUCTION
Sections
47.98.010
47.98.020
Continuation of existing law.
Provisions to be construed in pari materia.
[Title 47 RCW—page 248]
47.98.041
47.98.041 Severability—1963 ex.s. c 3. If any phrase,
clause, subsection or section of this act shall be declared
unconstitutional or invalid by any court of competent jurisdiction, it shall be conclusively presumed that the legislature
would have enacted this act without the phrase, clause, subsection or section so held unconstitutional or invalid and the
remainder of the act shall not be affected as a result of said
part being held unconstitutional or invalid. [1963 ex.s. c 3 §
57.]
(2004 Ed.)
Construction
47.98.042
47.98.042 Severability—1965 ex.s. c 170. If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not
affected. [1965 ex.s. c 170 § 70.]
47.98.090
pretation should be resolved consistently with the broad purposes set forth in *RCW 47.01.011. [1977 ex.s. c 151 § 78.]
*Reviser's note: RCW 47.01.011 was decodified pursuant to 1985 c 6
§ 26.
47.98.043
47.98.043 Severability—1967 ex.s. c 145. If any provision of this 1967 amendatory act, or its application to any
person or circumstance is held invalid, the remainder of the
act, or the application of the provision to other persons or circumstances is not affected. [1967 ex.s. c 145 § 73.]
47.98.044
47.98.044 Severability—1967 c 108. If any provision
of this act, or its application to any person or circumstance is
held invalid, the remainder of the act, or the application of the
provision to other persons or circumstances is not affected.
[1967 c 108 § 14.]
47.98.045
47.98.045 Severability—1969 ex.s. c 281. If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not
affected. [1969 ex.s. c 281 § 64.]
47.98.050
47.98.050 Repeals and saving.
47.98.050.
See 1961 c 13 §
47.98.060
47.98.060 Emergency—1961 c 13. This act is necessary for the immediate preservation of the public peace,
health and safety, the support of the state government and its
existing institutions and shall take effect immediately: PROVIDED, That the effective date of sections *47.16.160,
47.20.110, and 47.20.380 shall be July 1, 1961. [1961 c 13 §
47.98.060.]
*Reviser's note: RCW 47.16.160, 47.20.110, and 47.20.380 were
repealed by 1970 ex.s. c 51.
47.98.070
47.98.070 Federal requirements. If any part of this
title or any section of this 1977 amendatory act is ruled to be
in conflict with federal requirements which are a prescribed
condition of the allocation of federal funds to the state, or to
any department or agencies thereof, such conflicting part or
section is declared to be inoperative solely to the extent of the
conflict. No such ruling shall affect the operation of the
remainder of the act. Any internal reorganization carried out
under the terms of this title or any section of this 1977 amendatory act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the state.
[1977 ex.s. c 151 § 76.]
47.98.080
47.98.080 Severability—1977 ex.s. c 151. If any provision of this 1977 amendatory act, or its application to any
person or circumstance is held invalid, the remainder of the
act, or the application of the provision to other persons or circumstances is not affected. [1977 ex.s. c 151 § 77.]
47.98.090
47.98.090 Liberal construction. The rule of strict construction shall have no application to this title, and it shall be
liberally construed in order to carry out the objectives for
which it is designed. Any ambiguities arising from its inter(2004 Ed.)
[Title 47 RCW—page 249]
Title 48
Chapters
48.01
48.02
48.03
48.04
48.05
48.06
48.07
48.08
48.09
48.10
48.11
48.12
48.13
48.14
48.15
48.16
48.17
48.18
48.18A
48.19
48.20
48.21
48.21A
48.22
48.23
48.23A
48.24
48.25
48.25A
48.26
48.27
48.28
48.29
48.30
48.30A
48.31
48.31B
48.31C
48.32
48.32A
48.34
48.35
48.36A
48.38
48.41
48.42
48.43
48.44
48.45
48.46
48.47
(2004 Ed.)
Title 48
INSURANCE
Initial provisions.
Insurance commissioner.
Examinations.
Hearings and appeals.
Insurers—General requirements.
Organization of domestic insurers.
Domestic insurers—Powers.
Domestic stock insurers.
Mutual insurers.
Reciprocal insurers.
Insuring powers.
Assets and liabilities.
Investments.
Fees and taxes.
Unauthorized insurers.
Deposits of insurers.
Agents, brokers, solicitors, and adjusters.
The insurance contract.
Variable contract act.
Rates.
Disability insurance.
Group and blanket disability insurance.
Disability insurance—Extended health.
Casualty insurance.
Life insurance and annuities.
Life insurance policy illustrations.
Group life and annuities.
Industrial life insurance.
Life insurance—Profit-sharing, charter,
founders, and coupon policies.
Marine and transportation insurance
(Reserved).
Property insurance.
Surety insurance.
Title insurers.
Unfair practices and frauds.
Insurance fraud.
Mergers, rehabilitation, liquidation.
Insurer holding company act.
Holding company act for health care service
contractors and health maintenance organizations.
Washington insurance guaranty association
act.
Washington life and disability insurance guaranty association act.
Credit life insurance and credit accident and
health insurance.
Alien insurers.
Fraternal benefit societies.
Charitable gift annuity business.
Health insurance coverage access act.
Personal coverage, general authority.
Insurance reform.
Health care services.
Rural health care.
Health maintenance organizations.
Mandated health benefits.
48.48
48.50
48.53
48.56
48.58
48.62
48.66
48.68
48.70
48.74
48.76
48.80
48.84
48.85
48.87
48.88
48.90
48.92
48.94
48.96
48.97
48.98
48.99
48.102
48.104
48.110
48.115
48.120
48.125
State fire protection.
Insurance fraud reporting immunity act.
Fire insurance—Arson fraud reduction.
Insurance premium finance company act.
Riot reinsurance reimbursement.
Local government insurance transactions.
Medicare supplemental health insurance act.
Health care savings account act.
Specified Disease Insurance Act.
Standard valuation law.
Standard nonforfeiture law for life insurance.
Health care false claim act.
Long-term care insurance act.
Washington long-term care partnership.
Midwives and birthing centers—Joint underwriting association.
Day care services—Joint underwriting association.
Child day care centers—Self-insurance.
Liability risk retention.
Reinsurance Intermediary Act.
Motor vehicle service contracts.
Broker-controlled property and casualty
insurer act.
Managing General Agents Act.
Uniform Insurers Liquidation Act.
Viatical settlements.
Holocaust victims insurance relief act.
Service contracts.
Rental car insurance.
Specialty producer licenses—Communications
equipment or services.
Self-funded multiple employer welfare
arrangements.
Administrative Procedure Act: Chapter 34.05 RCW.
Agents
exemption from unemployment compensation: RCW 50.04.230.
savings banks as: RCW 32.08.140, 32.08.160.
state banks as: RCW 30.08.140.
Children, expectant mothers, developmentally disabled, fire protection for
agencies providing for, duties of chief of the Washington state patrol:
RCW 74.15.050.
Community renewal: Chapter 35.81 RCW.
Consumer Protection Act: RCW 19.86.170.
Corporate seals, effect of absence from instrument: RCW 64.04.105.
Employee benefit plans
payment as discharge: RCW 49.64.030.
when private utility acquired: RCW 54.04.130.
False arrest insurance for city and county law enforcement personnel: RCW
35.23.460, 36.16.130.
False fire alarms, crime: RCW 9.40.100.
Federal bonds and notes as investment or collateral: Chapter 39.60 RCW.
Financial responsibility law: Chapter 46.29 RCW.
Fire protection district personnel—Group life insurance: RCW 52.12.031.
Fireworks: Chapter 70.77 RCW.
Funeral service contracts: RCW 18.39.240 through 18.39.360.
[Title 48 RCW—page 1]
Chapter 48.01
Title 48 RCW: Insurance
General agents, fire, casualty, business and occupation tax: RCW
82.04.280.
Group insurance for public employees
counties: RCW 36.32.400.
fire protection districts: RCW 52.12.031.
irrigation districts: RCW 87.03.160.
port districts: RCW 53.08.170.
public employees generally: Chapter 41.04 RCW.
public utility districts: RCW 54.04.050.
schools and colleges: RCW 28A.400.350, 28B.10.660.
state employees: Chapter 41.04 RCW.
Washington state patrol: RCW 48.24.090.
Insurance proceeds on lost, stolen, or destroyed property, exempt from execution: RCW 6.15.030.
Liability insurance for officials and employees
cities: RCW 35.21.205.
fire districts: RCW 52.12.071.
irrigation districts: RCW 87.03.162.
port districts: RCW 53.08.205.
public utility districts: RCW 54.16.095.
school districts: RCW 28A.400.360.
towns: RCW 35.21.205.
water-sewer districts: RCW 57.08.105.
Lien of employees for contribution to benefit plans: Chapter 60.76 RCW.
Malpractice insurance for retired physicians providing health care services:
RCW 43.70.460.
Master license system exemption: RCW 19.02.800.
Motor vehicles, financial responsibility: Chapter 46.29 RCW.
Nonadmitted foreign corporations—Powers relative to secured interests:
Chapter 23B.18 RCW.
Officers, employees, etc.
of institutions of higher education and educational boards, insurance to
protect and hold personally harmless: RCW 28B.10.840, 28B.10.844.
of school districts or educational service districts, insurance to protect
and hold personally harmless: RCW 28A.320.060.
Parents—Children
actions by parents for death or injury to child: RCW 4.24.010.
liability of parents for malicious destruction of property by child: RCW
4.24.190.
Pesticide applicators—Surety bond, liability insurance: Chapter 17.21
RCW.
Principal and Income Act of 2002: Chapter 11.104A RCW.
Schools and colleges, employee insurance programs: RCW 28A.400.350,
28B.10.660.
Sureties—Release of, from liability upon bonds: RCW 19.72.109, 19.72.110,
19.72.130.
Taxation
business and occupation tax
fraternal benefit society exemption: RCW 82.04.370.
insurance exemption: RCW 82.04.320.
personal property tax—Insurer liable for where insured premises
destroyed by fire: RCW 84.56.220.
Trusts for employee benefits, duration: Chapter 49.64 RCW.
Washington Principal and Income Act of 2002: Chapter 11.104A RCW.
Chapter 48.01
Chapter 48.01 RCW
INITIAL PROVISIONS
48.01.090
48.01.100
48.01.110
48.01.120
48.01.130
48.01.140
48.01.150
48.01.160
48.01.170
48.01.180
48.01.190
48.01.220
48.01.230
48.01.235
48.01.250
48.01.260
48.01.270
Severability—1947 c 79.
Existing officers.
Existing licenses.
Existing insurance forms.
Existing actions, violations.
Headings.
Particular provisions prevail.
Repealed acts not revived.
Effective date—1947 c 79.
Adopted children—Insurance coverage.
Immunity from civil liability.
Mental health regional support networks—Limited exemption.
Eligibility for coverage or making payments may not be contingent on eligibility for medical assistance.
Enrollment of a child under the health plan of the child's parent—Requirements—Restrictions.
Assistance or services in exchange for dues, assessments, or
periodic or lump-sum payments—Certificate of authority
required—Certain travel or automobile services excepted—
Violations.
Health benefit plans—Carriers—Clarification.
PACE programs—Exemption.
48.01.010
48.01.010 Short title. Title 48 RCW constitutes the
insurance code. [1975 1st ex.s. c 266 § 2; 1947 c 79 § .01.01;
Rem. Supp. 1947 § 45.01.01.]
Severability—1975 1st ex.s. c 266: "If any provision of this 1975
amendatory act, or its application to any person or circumstance is held
invalid, the remainder of the act or the application of the provision to other
persons or circumstances is not affected." [1975 1st ex.s. c 266 § 21.]
48.01.020
48.01.020 Scope of code. All insurance and insurance
transactions in this state, or affecting subjects located wholly
or in part or to be performed within this state, and all persons
having to do therewith are governed by this code. [1947 c 79
§ .01.02; Rem. Supp. 1947 § 45.01.02.]
48.01.030
48.01.030 Public interest. The business of insurance is
one affected by the public interest, requiring that all persons
be actuated by good faith, abstain from deception, and practice honesty and equity in all insurance matters. Upon the
insurer, the insured, their providers, and their representatives
rests the duty of preserving inviolate the integrity of insurance. [1995 c 285 § 16; 1947 c 79 § .01.03; Rem. Supp. 1947
§ 45.01.03.]
Effective date—1995 c 285: See RCW 48.30A.900.
48.01.035
48.01.035 "Developmental disability" defined. The
term "developmental disability" as used in this title means a
disability attributable to mental retardation, cerebral palsy,
epilepsy, autism, or another neurological condition closely
related to mental retardation or to require treatment similar to
that required for mentally retarded individuals, which disability originates before such individual attains age eighteen,
which has continued or can be expected to continue indefinitely, and which constitutes a substantial handicap to such
individual. [1985 c 264 § 1.]
Sections
48.01.040
48.01.010
48.01.020
48.01.030
48.01.035
48.01.040
48.01.050
48.01.053
48.01.060
48.01.070
48.01.080
Short title.
Scope of code.
Public interest.
"Developmental disability" defined.
"Insurance" defined.
"Insurer" defined.
"Issuer" defined.
"Insurance transaction" defined.
"Person" defined.
Penalties.
[Title 48 RCW—page 2]
48.01.040 "Insurance" defined. Insurance is a contract whereby one undertakes to indemnify another or pay a
specified amount upon determinable contingencies. [1947 c
79 § .01.04; Rem. Supp. 1947 § 45.01.04.]
48.01.050
48.01.050 "Insurer" defined. "Insurer" as used in this
code includes every person engaged in the business of making contracts of insurance, other than a fraternal benefit soci(2004 Ed.)
Initial Provisions
ety. A reciprocal or interinsurance exchange is an "insurer"
as used in this code. Two or more hospitals that join and
organize as a mutual corporation pursuant to chapter 24.06
RCW for the purpose of insuring or self-insuring against liability claims, including medical liability, through a contributing trust fund are not an "insurer" under this code. Two or
more local governmental entities, under any provision of law,
that join together and organize to form an organization for the
purpose of jointly self-insuring or self-funding are not an
"insurer" under this code. Two or more persons engaged in
the business of commercial fishing who enter into an arrangement with other such persons for the pooling of funds to pay
claims or losses arising out of loss or damage to a vessel or
machinery used in the business of commercial fishing and
owned by a member of the pool are not an "insurer" under
this code. [2003 c 248 § 1; 1990 c 130 § 1; 1985 c 277 § 9;
1979 ex.s. c 256 § 13; 1975-'76 2nd ex.s. c 13 § 1; 1947 c 79
§ .01.05; Rem. Supp. 1947 § 45.01.05.]
Retrospective application—1985 c 277: "This act applies retrospectively to group self-funded plans formed on or after January 1, 1983." [1985
c 277 § 10.]
"Domestic," "foreign," "alien" insurers defined: RCW 48.05.010.
Merger, rehabilitation, liquidation situations—"Insurer" defined: RCW
48.31.020, 48.99.010.
"Reciprocal insurance, insurer" defined: RCW 48.10.010, 48.10.020.
48.01.180
48.01.090
48.01.090 Severability—1947 c 79. If any provision of
this code or the application thereof to any circumstance is
held invalid, the remainder of the code, or the application of
the provision to other circumstances, is not affected thereby.
[1947 c 79 § .01.09; Rem. Supp. 1947 § 45.01.09.]
48.01.100
48.01.100 Existing officers. Continuation by this code
of any office existing under any act repealed herein preserves
the tenure of the individual holding the office at the effective
date of this code. [1947 c 79 § .01.10; Rem. Supp. 1947 §
45.01.10.]
48.01.110
48.01.110 Existing licenses. Every license or certificate of authority in force immediately prior to the effective
date of this code and existing under any act herein repealed is
valid until its original expiration date, unless earlier terminated in accordance with this code. [1947 c 79 § .01.11;
Rem. Supp. 1947 § 45.01.11.]
48.01.120
48.01.120 Existing insurance forms. Every form of
insurance document in use at the effective date of this code in
accordance with the commissioner's approval pursuant to any
act herein repealed, may continue to be so used unless the
commissioner otherwise prescribes in accordance with this
code. [1947 c 79 § .01.12; Rem. Supp. 1947 § 45.01.12.]
48.01.053
48.01.053 "Issuer" defined. "Issuer" as used in this
title and chapter 26.18 RCW means insurer, fraternal benefit
society, certified health plan, health maintenance organization, and health care service contractor. [1995 c 34 § 1.]
48.01.060
48.01.060 "Insurance transaction" defined. "Insurance transaction" includes any:
(1) Solicitation.
(2) Negotiations preliminary to execution.
(3) Execution of an insurance contract.
(4) Transaction of matters subsequent to execution of the
contract and arising out of it.
(5) Insuring. [1947 c 79 § .01.06; Rem. Supp. 1947 §
45.01.06.]
48.01.070
48.01.070 "Person" defined. "Person" means any individual, company, insurer, association, organization, reciprocal or interinsurance exchange, partnership, business trust, or
corporation. [1947 c 79 § .01.07; Rem. Supp. 1947 §
45.01.07.]
48.01.080
48.01.080 Penalties. Except as otherwise provided in
this code, any person violating any provision of this code is
guilty of a gross misdemeanor and will, upon conviction, be
fined not less than ten dollars nor more than one thousand
dollars, or imprisoned for not more than one year, or both, in
addition to any other penalty or forfeiture provided herein or
otherwise by law. [2003 c 250 § 1; 1947 c 79 § .01.08; Rem.
Supp. 1947 § 45.01.08.]
Severability—2003 c 250: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [2003 c 250 § 15.]
(2004 Ed.)
48.01.130
48.01.130 Existing actions, violations. No action or
proceeding commenced, and no violation of law existing,
under any act herein repealed is affected by the repeal, but all
procedure hereafter taken in reference thereto shall conform
to this code as far as possible. [1947 c 79 § .01.13; Rem.
Supp. 1947 § 45.01.13.]
48.01.140
48.01.140 Headings. The meaning or scope of any provision is not affected by chapter, section, or paragraph headings. [1947 c 79 § .01.14; Rem. Supp. 1947 § 45.01.14.]
48.01.150
48.01.150 Particular provisions prevail. Provisions of
this code relating to a particular kind of insurance or a particular type of insurer or to a particular matter prevail over provisions relating to insurance in general or insurers in general
or to such matter in general. [1947 c 79 § .01.15; Rem. Supp.
1947 § 45.01.15.]
48.01.160
48.01.160 Repealed acts not revived. Repeal by this
code of any act shall not revive any law heretofore repealed
or superseded. [1947 c 79 § .01.16; Rem. Supp. 1947 §
45.01.16.]
48.01.170
48.01.170 Effective date—1947 c 79. This code shall
become effective on the first day of October, 1947. [1947 c
79 § .01.17; Rem. Supp. 1947 § 45.01.17.]
48.01.180
48.01.180 Adopted children—Insurance coverage.
(1) A child of an insured, subscriber, or enrollee shall be considered a dependent child for insurance purposes under this
title upon assumption by the insured, subscriber, or enrollee
of a legal obligation for total or partial support of a child in
anticipation of adoption of the child. Upon the termination of
[Title 48 RCW—page 3]
48.01.190
Title 48 RCW: Insurance
such legal obligations, the child shall not be considered a
dependent child for insurance purposes.
(2) Every policy or contract providing coverage for
health benefits to a resident of this state shall provide coverage for dependent children placed for adoption under the
same terms and conditions as apply to the natural, dependent
children of the insured, subscriber, or enrollee whether or not
the adoption has become final.
(3) No policy or contract may restrict coverage of any
dependent child adopted by, or placed for adoption with, an
insured, subscriber, or enrollee solely on the basis of a preexisting condition of the child at the time that the child would
otherwise become eligible for coverage under the plan if the
adoption or placement for adoption occurs while the insured,
subscriber, or enrollee is eligible for coverage under the plan.
[1995 c 34 § 4; 1986 c 140 § 1.]
Effective date, application—1986 c 140: "This act shall take effect
January 1, 1987, and shall apply to all contracts or agreements issued,
renewed, or delivered on or after January 1, 1987." [1986 c 140 § 6.]
Severability—1986 c 140: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1986 c 140 § 7.]
48.01.190
48.01.190 Immunity from civil liability. (1) Any person who files reports, or furnishes other information, required
under Title 48 RCW, required by the commissioner under
authority granted by Title 48 RCW, useful to the commissioner in the administration of Title 48 RCW, or furnished to
the National Association of Insurance Commissioners at the
request of the commissioner or pursuant to Title 48 RCW,
shall be immune from liability in any civil action or suit arising from the filing of any such report or furnishing such
information to the commissioner or the National Association
of Insurance Commissioners, unless actual malice, fraud, or
bad faith is shown.
(2) The commissioner and the National Association of
Insurance Commissioners, and the agents and employees of
each, are immune from liability in any civil action or suit arising from the publication of any report or bulletin or dissemination of information related to the official activities of the
commissioner or the National Association of Insurance Commissioners, unless actual malice, fraud, or bad faith is shown.
(3) Any licensee under chapter 48.17 RCW and any trade
association of the licensees under chapter 48.15 RCW, and
any officer, director, employee, agent, or committee of the
licensee or association who furnishes information to or for
the commissioner or to or for the association regarding unauthorized insurers or regarding attempts by any person to place
or actual placement by any person of business with the insurers, whether in compliance with chapter 48.15 RCW or not,
shall be immune from each and every kind of liability in any
civil action or suit arising in whole or in part from the information or from the furnishing of the information.
(4) The immunity granted by this section is in addition to
any common law or statutory privilege or immunity enjoyed
by such person, and nothing in this section is intended to
abrogate or modify in any way such common law or statutory
privilege or immunity. [1995 c 10 § 1; 1987 c 51 § 1.]
[Title 48 RCW—page 4]
48.01.220
48.01.220 Mental health regional support networks—Limited exemption. The activities and operations
of mental health regional support networks, to the extent they
pertain to the operation of a medical assistance managed care
system in accordance with chapters 71.24 and 74.09 RCW,
are exempt from the requirements of this title. [1993 c 462 §
104.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.01.230
48.01.230 Eligibility for coverage or making payments may not be contingent on eligibility for medical
assistance. An issuer and an employee welfare benefit plan,
whether insured or self funded, as defined in the employee
retirement income security act of 1974, 29 U.S.C. Sec. 1101
et seq. may not consider the availability of eligibility for
medical assistance in this state under medical assistance,
RCW 74.09.500, or any other state under 42 U.S.C. Sec.
1396a, section 1902 of the social security act, in considering
eligibility for coverage or making payments under its plan for
eligible enrollees, subscribers, policyholders, or certificate
holders. [1995 c 34 § 2.]
48.01.235
48.01.235 Enrollment of a child under the health
plan of the child's parent—Requirements—Restrictions.
(1) An issuer and an employee welfare benefit plan, whether
insured or self funded, as defined in the employee retirement
income security act of 1974, 29 U.S.C. Sec. 1101 et seq. may
not deny enrollment of a child under the health plan of the
child's parent on the grounds that:
(a) The child was born out of wedlock;
(b) The child is not claimed as a dependent on the parent's federal tax return; or
(c) The child does not reside with the parent or in the
issuer's, or insured or self funded employee welfare benefit
plan's service area.
(2) Where a child has health coverage through an issuer,
or an insured or self funded employee welfare benefit plan of
a noncustodial parent, the issuer, or insured or self funded
employee welfare benefit plan, shall:
(a) Provide such information to the custodial parent as
may be necessary for the child to obtain benefits through that
coverage;
(b) Permit the provider or the custodial parent to submit
claims for covered services without the approval of the noncustodial parent. If the provider submits the claim, the provider will obtain the custodial parent's assignment of insurance benefits or otherwise secure the custodial parent's
approval.
For purposes of this subsection the department of social
and health services as the state medicaid agency under RCW
74.09.500 may reassign medical insurance rights to the provider for custodial parents whose children are eligible for services under RCW 74.09.500; and
(c) Make payments on claims submitted in accordance
with (b) of this subsection directly to the custodial parent, to
the provider, or to the department of social and health services as the state medicaid agency under RCW 74.09.500.
(3) Where a child does not reside in the issuer's service
area, an issuer shall cover no less than urgent and emergent
care. Where the issuer offers broader coverage, whether by
(2004 Ed.)
Insurance Commissioner
policy or reciprocal agreement, the issuer shall provide such
coverage to any child otherwise covered that does not reside
in the issuer's service area.
(4) Where a parent is required by a court order to provide
health coverage for a child, and the parent is eligible for family health coverage, the issuer, or insured or self funded
employee welfare benefit plan, shall:
(a) Permit the parent to enroll, under the family coverage, a child who is otherwise eligible for the coverage without regard to any enrollment season restrictions;
(b) Enroll the child under family coverage upon application of the child's other parent, department of social and
health services as the state medicaid agency under RCW
74.09.500, or child support enforcement program, if the parent is enrolled but fails to make application to obtain coverage for such child; and
(c) Not disenroll, or eliminate coverage of, such child
who is otherwise eligible for the coverage unless the issuer or
insured or self funded employee welfare benefit plan is provided satisfactory written evidence that:
(i) The court order is no longer in effect; or
(ii) The child is or will be enrolled in comparable health
coverage through another issuer, or insured or self funded
employee welfare benefit plan, which will take effect not
later than the effective date of disenrollment.
(5) An issuer, or insured or self funded employee welfare
benefit plan, that has been assigned the rights of an individual
eligible for medical assistance under medicaid and coverage
for health benefits from the issuer, or insured or self funded
employee welfare benefit plan, may not impose requirements
on the department of social and health services that are different from requirements applicable to an agent or assignee of
any other individual so covered. [2003 c 248 § 2; 1995 c 34
§ 3.]
48.01.250 Assistance or services in exchange for
dues, assessments, or periodic or lump-sum payments—
Certificate of authority required—Certain travel or automobile services excepted—Violations. (1) Any person,
firm, partnership, corporation, or association promising, in
exchange for dues, assessments, or periodic or lump-sum
payments, to furnish members or subscribers with assistance
in matters relating to trip cancellation, bail bond service or
any accident, sickness, or death insurance benefit program
must:
(a) Have a certificate of authority, issued by the insurance commissioner, authorizing the person, firm, partnership,
corporation, or association to sell that coverage in this state;
or
(b) Purchase the service or insurance from a company
that holds a certificate of authority, issued by the insurance
commissioner, authorizing the company to sell that coverage
in this state. If coverage cannot be procured from an authorized insurer holding a certificate of authority issued by the
insurance commissioner, insurance may be procured from an
unauthorized insurer subject to chapter 48.15 RCW.
(2) Travel or automobile related products or assistance
including but not limited to community traffic safety service,
travel and touring service, theft or reward service, map service, towing service, emergency road service, lockout or lost
key service, reimbursement of emergency expenses due to a
vehicle disabling accident, or legal fee reimbursement service in the defense of traffic offenses shall not be considered
to be insurance for the purposes of Title 48 RCW.
(3) Violation of this section is subject to the enforcement
provisions of RCW 48.02.080 and to the hearing and appeal
provisions of chapter 48.04 RCW. [1998 c 303 § 1.]
48.01.260
48.01.260 Health benefit plans—Carriers—Clarification. (1) Except as required in RCW 48.21.045, 48.44.023,
and 48.46.066, nothing in this title shall be construed to
require a carrier, as defined in RCW 48.43.005, to offer any
health benefit plan for sale.
(2) Nothing in this title shall prohibit a carrier as defined
in RCW 48.43.005 from ceasing sale of any or all health benefit plans to new applicants if the closed plans are closed to
all new applicants.
(3) This section is intended to clarify, and not modify,
existing law. [2000 c 79 § 40.]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
48.01.270
48.01.270 PACE programs—Exemption. The activities and operations of PACE programs, as defined in RCW
74.09.523 and as authorized under sections 1894, 1905(a),
and 1934 of the social security act, when registered, certified,
licensed, or otherwise recognized or designated as a PACE
program by the Washington state department of social and
health services, are exempt from the requirements of this
title. [2001 c 191 § 3.]
Finding—Effective date—2001 c 191: See notes following RCW
74.09.523.
Chapter 48.02
48.01.250
(2004 Ed.)
Chapter 48.02
Chapter 48.02 RCW
INSURANCE COMMISSIONER
Sections
48.02.010
48.02.020
48.02.030
48.02.050
48.02.060
48.02.065
48.02.080
48.02.090
48.02.100
48.02.110
48.02.120
48.02.122
48.02.130
48.02.140
48.02.150
48.02.160
48.02.170
48.02.180
48.02.190
Insurance commissioner.
Term of office.
Bond.
Seal.
General powers and duties.
Confidentiality of documents, materials, or other information.
Enforcement.
Deputies—Employees.
Commissioner may delegate authority.
Office.
Records.
Filings or actions affecting corporate or company name—
Notice to secretary of state.
Certificates—Copies—Evidentiary effect.
Interstate cooperation.
Supplies—"Convention blanks."
Special duties.
Annual report.
Publication of insurance code and related statutes, manuals,
etc.—Distribution—Sale.
Operating costs of office—Insurance commissioner's regulatory account—Contributions by insurance organizations,
fees.
Commissioner to prepare annuity tables for calculation of reserve fund in
cases of death or permanent disability under workers' compensation:
RCW 51.44.070.
Public bodies may retain collection agencies to collect public debts—Fees:
RCW 19.16.500.
Salary of insurance commissioner: RCW 43.03.010.
[Title 48 RCW—page 5]
48.02.010
Title 48 RCW: Insurance
48.02.010
48.02.010 Insurance commissioner. (1) There shall be
an insurance commissioner of this state who shall be elected
at the time and in the manner that other state officers are
elected.
(2) The commissioner in office at the effective date of
this code shall continue in office for the remainder of the term
for which he was elected and until his successor is duly
elected and qualified.
(3) "Commissioner," where used in this code, means the
insurance commissioner of this state. [1947 c 79 § .02.01;
Rem. Supp. 1947 § 45.02.01.]
48.02.020
48.02.020 Term of office. The term of office of the
commissioner shall be four years, commencing on the
Wednesday after the second Monday in January after his
election. [1947 c 79 § .02.02; Rem. Supp. 1947 § 45.02.02.]
48.02.030
48.02.030 Bond. Before entering upon his duties the
commissioner shall execute a bond to the state in the sum of
twenty-five thousand dollars, to be approved by the state treasurer and the attorney general, conditioned upon the faithful
performance of the duties of his office. [1947 c 79 § .02.03;
Rem. Supp. 1947 § 45.02.03.]
48.02.050
48.02.050 Seal. The official seal of the commissioner
shall be a vignette of George Washington, with the words
"Insurance Commissioner, State of Washington" surrounding
the vignette. [1947 c 79 § .02.05; Rem. Supp. 1947 §
45.02.05.]
48.02.060
48.02.060 General powers and duties. (1) The commissioner shall have the authority expressly conferred upon
him by or reasonably implied from the provisions of this
code.
(2) The commissioner shall execute his duties and shall
enforce the provisions of this code.
(3) The commissioner may:
(a) Make reasonable rules and regulations for effectuating any provision of this code, except those relating to his
election, qualifications, or compensation. No such rules and
regulations shall be effective prior to their being filed for
public inspection in the commissioner's office.
(b) Conduct investigations to determine whether any
person has violated any provision of this code.
(c) Conduct examinations, investigations, hearings, in
addition to those specifically provided for, useful and proper
for the efficient administration of any provision of this code.
[1947 c 79 § .02.06; Rem. Supp. 1947 § 45.02.06.]
48.02.065
48.02.065 Confidentiality of documents, materials, or
other information. (1) Documents, materials, or other information as described in subsection (5) of this section are confidential by law and privileged, are not subject to public disclosure under chapter 42.17 RCW, and are not subject to subpoena directed to the commissioner or any person who
received documents, materials, or other information while
acting under the authority of the commissioner. The commissioner is authorized to use such documents, materials, or
other information in the furtherance of any regulatory or legal
action brought as a part of the commissioner's official duties.
[Title 48 RCW—page 6]
The confidentiality and privilege created by this section and
RCW 42.17.31916 applies only to the commissioner, any
person acting under the authority of the commissioner, the
national association of insurance commissioners and its affiliates and subsidiaries, regulatory and law enforcement officials of other states and nations, the federal government, and
international authorities.
(2) Neither the commissioner nor any person who
received documents, materials, or other information while
acting under the authority of the commissioner is permitted
or required to testify in any private civil action concerning
any confidential and privileged documents, materials, or
information subject to subsection (1) of this section.
(3) The commissioner:
(a) May share documents, materials, or other information, including the confidential and privileged documents,
materials, or information subject to subsection (1) of this section, with (i) the national association of insurance commissioners and its affiliates and subsidiaries, and (ii) regulatory
and law enforcement officials of other states and nations, the
federal government, and international authorities, if the recipient agrees to maintain the confidentiality and privileged status of the document, material, or other information;
(b) May receive documents, materials, or information,
including otherwise either confidential or privileged, or both,
documents, materials, or information, from (i) the national
association of insurance commissioners and its affiliates and
subsidiaries, and (ii) regulatory and law enforcement officials
of other states and nations, the federal government, and international authorities and shall maintain as confidential and
privileged any document, material, or information received
that is either confidential or privileged, or both, under the
laws of the jurisdiction that is the source of the document,
material, or information; and
(c) May enter into agreements governing the sharing and
use of information consistent with this subsection.
(4) No waiver of an existing privilege or claim of confidentiality in the documents, materials, or information may
occur as a result of disclosure to the commissioner under this
section or as a result of sharing as authorized in subsection
(3) of this section.
(5) Documents, materials, or information, which is either
confidential or privileged, or both, which has been provided
to the commissioner by (a) the national association of insurance commissioners and its affiliates and subsidiaries, (b)
regulatory or law enforcement officials of other states and
nations, the federal government, or international authorities,
or (c) agencies of this state, is confidential and privileged
only if the documents, materials, or information is protected
from disclosure by the applicable laws of the jurisdiction that
is the source of the document, material, or information.
[2001 c 57 § 1.]
48.02.080
48.02.080 Enforcement. (1) The commissioner may
prosecute an action in any court of competent jurisdiction to
enforce any order made by him pursuant to any provision of
this code.
(2) If the commissioner has cause to believe that any person has violated any penal provision of this code or of other
laws relating to insurance he shall certify the facts of the vio(2004 Ed.)
Insurance Commissioner
lation to the public prosecutor of the jurisdiction in which the
offense was committed.
(3) If the commissioner has cause to believe that any person is violating or is about to violate any provision of this
code or any regulation or order of the commissioner, he may:
(a) issue a cease and desist order; and/or
(b) bring an action in any court of competent jurisdiction
to enjoin the person from continuing the violation or doing
any action in furtherance thereof.
(4) The attorney general and the several prosecuting
attorneys throughout the state shall prosecute or defend all
proceedings brought pursuant to the provisions of this code
when requested by the commissioner. [1967 c 150 § 1; 1947
c 79 § .02.08; Rem. Supp. 1947 § 45.02.08.]
48.02.090
48.02.090 Deputies—Employees. (1) The commissioner may appoint a chief deputy commissioner, who shall
have power to perform any act or duty conferred upon the
commissioner. The chief deputy commissioner shall take and
subscribe the same oath of office as the commissioner, which
oath shall be endorsed upon the certificate of his appointment
and filed in the office of the secretary of state.
(2) The commissioner may appoint additional deputy
commissioners for such purposes as he may designate.
(3) The commissioner shall be responsible for the official acts of his deputies, and may revoke at will the appointment of any deputy.
(4) The commissioner may employ examiners, and such
actuarial, technical, and administrative assistants and clerks
as he may need for proper discharge of his duties.
(5) The commissioner, or any deputy or employee of the
commissioner, shall not be interested, directly or indirectly,
in any insurer except as a policyholder; except, that as to such
matters wherein a conflict of interests does not exist on the
part of any such person, the commissioner may employ insurance actuaries or other technicians who are independently
practicing their professions even though such persons are
similarly employed by insurers.
(6) The commissioner may require any deputy or
employee to be bonded as he shall deem proper but not to
exceed in amount the sum of twenty-five thousand dollars.
The cost of any such bond shall be borne by the state. [1949
c 190 § 1; 1947 c 79 § .02.09; Rem. Supp. 1949 § 45.02.09.]
48.02.100
48.02.100 Commissioner may delegate authority.
Any power or duty vested in the commissioner by any provision of this code may be exercised or discharged by any deputy, assistant, examiner, or employee of the commissioner
acting in his name and by his authority. [1947 c 79 § .02.10;
Rem. Supp. 1947 § 45.02.10.]
48.02.110
48.02.110 Office. The commissioner shall have an
office at the state capital, and may maintain such offices elsewhere in this state as he may deem necessary. [1947 c 79 §
.02.11; Rem. Supp. 1947 § 45.02.11.]
48.02.120
48.02.120 Records. (1) The commissioner shall preserve in permanent form records of his or her proceedings,
hearings, investigations, and examinations, and shall file
such records in his or her office.
(2004 Ed.)
48.02.140
(2) The records of the commissioner and insurance filings in his or her office shall be open to public inspection,
except as otherwise provided by this code.
(3) Actuarial formulas, statistics, and assumptions submitted in support of a rate or form filing by an insurer, health
care service contractor, or health maintenance organization
or submitted to the commissioner upon his or her request
shall be withheld from public inspection in order to preserve
trade secrets or prevent unfair competition. [1985 c 264 § 2;
1979 ex.s. c 130 § 1; 1947 c 79 § .02.12; Rem. Supp. 1947 §
45.02.12.]
48.02.122
48.02.122 Filings or actions affecting corporate or
company name—Notice to secretary of state. Whenever
any documents are filed with the insurance commissioner
which affect a corporate or company name, the insurance
commissioner shall immediately notify the secretary of state
of the filing. If any other action is taken by the insurance
commissioner which affects a corporate or company name,
the insurance commissioner shall immediately notify the secretary of state of the action. The insurance commissioner
shall cooperate with the secretary of state to ascertain that
there is no duplication of corporate or company names.
[1998 c 23 § 19.]
48.02.130
48.02.130 Certificates—Copies—Evidentiary effect.
(1) Any certificate or license issued by the commissioner
shall bear the seal of his office.
(2) Copies of records or documents in his office certified
to by the commissioner shall be received as evidence in all
courts in the same manner and to the same effect as if they
were the originals.
(3) When required for evidence in court, the commissioner shall furnish his certificate as to the authority of an
insurer or other licensee in this state on any particular date,
and the court shall receive the certificate in lieu of the commissioner's testimony. [1947 c 79 § .02.13; Rem. Supp. 1947
§ 45.02.13.]
48.02.140
48.02.140 Interstate cooperation. (1) The commissioner shall to the extent he deems useful for the proper discharge of his responsibilities under the provisions of this
code:
(a) Consult and cooperate with the public officials having supervision over insurance in other states.
(b) Share jointly with other states in the employment of
actuaries, statisticians, and other insurance technicians whose
services or the products thereof are made available and are
useful to the participating states and to the commissioner.
(c) Share jointly with other states in establishing and
maintaining offices and clerical facilities for purposes useful
to the participating states and to the commissioner.
(2) All arrangements made jointly with other states under
items (b) and (c) of subsection (1) of this section shall be in
writing executed on behalf of this state by the commissioner.
Any such arrangement, as to participation of this state
therein, shall be subject to termination by the commissioner
at any time upon reasonable notice.
(3) For the purposes of this code "National Association
of Insurance Commissioners" means that voluntary organiza[Title 48 RCW—page 7]
48.02.150
Title 48 RCW: Insurance
tion of the public officials having supervision of insurance in
the respective states, districts, and territories of the United
States, whatever other name such organization may hereafter
adopt, and in the affairs of which each of such public officials
is entitled to participate subject to the constitution and bylaws
of such organization. [1947 c 79 § .02.14; Rem. Supp. 1947
§ 45.02.14.]
48.02.150
48.02.150 Supplies—"Convention blanks." The
commissioner shall purchase at the expense of the state and in
the manner provided by law:
(1) Printing, books, reports, furniture, equipment, and
supplies as he deems necessary to the proper discharge of his
duties under this code.
(2) "Convention form" insurers' annual statement blanks,
which he may purchase from any printer manufacturing the
forms for the various states. [1947 c 79 § .02.15; Rem. Supp.
1947 § 45.02.15.]
48.02.160
48.02.160 Special duties. The commissioner shall:
(1) Obtain and publish for the use of courts and appraisers throughout the state, tables showing the average expectancy of life and values of annuities and of life and term
estates.
(2) Disseminate information concerning the insurance
laws of this state.
(3) Provide assistance to members of the public in
obtaining information about insurance products and in
resolving complaints involving insurers and other licensees.
[1988 c 248 § 1; 1947 c 79 § .02.16; Rem. Supp. 1947 §
45.02.16.]
48.02.170
48.02.170 Annual report. The commissioner shall, as
soon as accurate preparation enables, prepare a report of his
official transactions during the preceding fiscal year, containing information relative to insurance as the commissioner
deems proper. [1987 c 505 § 53; 1977 c 75 § 69; 1947 c 79 §
.02.17; Rem. Supp. 1947 § 45.02.17.]
48.02.180
48.02.180 Publication of insurance code and related
statutes, manuals, etc.—Distribution—Sale. (1) In addition to such publications as are otherwise authorized under
this code, the commissioner may from time to time prepare
and publish:
(a) Booklets containing the insurance code, or supplements thereto, and such related statutes as the commissioner
deems suitable and useful for inclusion in an appendix of
such booklet or supplement.
(b) Manuals and other material relative to examinations
for licensing as provided in chapter 48.17 RCW.
(2) The commissioner may furnish copies of the insurance code, supplements thereto, and related statutes referred
to in (1)(a) of this section free of charge to public offices and
officers in this state concerned therewith, to public officials
of other states and jurisdictions having supervision of insurance, to the library of congress, and to officers of the armed
forces of the United States of America located at military
installations in this state who are concerned with insurance
transactions at or involving such military installations.
[Title 48 RCW—page 8]
(3) Except as provided in subsection (2) of this section,
the commissioner shall sell copies of the insurance code, supplements thereto, examination manuals, and materials as
referred to in subsection (1) of this section, at a reasonable
price, fixed by the commissioner, in amount not less than the
cost of publication, handling, and distribution thereof. The
commissioner shall promptly deposit all funds received by
him pursuant to this subsection with the state treasurer to the
credit of the general fund. For appropriation purposes, such
funds received and deposited by the commissioner shall be
treated as a recovery of a previous expenditure. [1981 c 339
§ 1; 1977 c 75 § 70; 1959 c 225 § 1.]
48.02.190 Operating costs of office—Insurance commissioner's regulatory account—Contributions by insurance organizations, fees. (1) As used in this section:
(a) "Organization" means every insurer, as defined in
RCW 48.01.050, having a certificate of authority to do business in this state and every health care service contractor or
[self-funded] multiple employer welfare arrangement registered to do business in this state. "Class one" organizations
shall consist of all insurers as defined in RCW 48.01.050.
"Class two" organizations shall consist of all organizations
registered under provisions of chapter 48.44 RCW. "Class
three" organizations shall consist of self-funded multiple
employer welfare arrangements as defined in RCW
48.125.010.
(b)(i) "Receipts" means (A) net direct premiums consisting of direct gross premiums, as defined in RCW 48.18.170,
paid for insurance written or renewed upon risks or property
resident, situated, or to be performed in this state, less return
premiums and premiums on policies not taken, dividends
paid or credited to policyholders on direct business, and premiums received from policies or contracts issued in connection with qualified plans as defined in RCW 48.14.021, and
(B) prepayments to health care service contractors as set forth
in RCW 48.44.010(3) or participant contributions to selffunded multiple employer welfare arrangements as defined in
RCW 48.125.010 less experience rating credits, dividends,
prepayments returned to subscribers, and payments for contracts not taken.
(ii) Participant contributions, under chapter 48.125
RCW, used to determine the receipts in this state under this
section shall be determined in the same manner as premiums
taxable in this state are determined under RCW 48.14.090.
(2) The annual cost of operating the office of insurance
commissioner shall be determined by legislative appropriation. A pro rata share of the cost shall be charged to all organizations. Each class of organization shall contribute sufficient in fees to the insurance commissioner's regulatory
account to pay the reasonable costs, including overhead, of
regulating that class of organization.
(3) Fees charged shall be calculated separately for each
class of organization. The fee charged each organization
shall be that portion of the cost of operating the insurance
commissioner's office, for that class of organization, for the
ensuing fiscal year that is represented by the organization's
portion of the receipts collected or received by all organizations within that class on business in this state during the previous calendar year: PROVIDED, That the fee shall not
exceed one-eighth of one percent of receipts: PROVIDED
48.02.190
(2004 Ed.)
Examinations
FURTHER, That the minimum fee shall be one thousand dollars.
(4) The commissioner shall annually, on or before June
1, calculate and bill each organization for the amount of its
fee. Fees shall be due and payable no later than June 15 of
each year: PROVIDED, That if the necessary financial
records are not available or if the amount of the legislative
appropriation is not determined in time to carry out such calculations and bill such fees within the time specified, the
commissioner may use the fee factors for the prior year as the
basis for the fees and, if necessary, the commissioner may
impose supplemental fees to fully and properly charge the
organizations. The penalties for failure to pay fees when due
shall be the same as the penalties for failure to pay taxes pursuant to RCW 48.14.060. The fees required by this section
are in addition to all other taxes and fees now imposed or that
may be subsequently imposed.
(5) All moneys collected shall be deposited in the insurance commissioner's regulatory account in the state treasury
which is hereby created.
(6) Unexpended funds in the insurance commissioner's
regulatory account at the close of a fiscal year shall be carried
forward in the insurance commissioner's regulatory account
to the succeeding fiscal year and shall be used to reduce
future fees. During the 2003-2005 fiscal biennium, the legislature may transfer from the insurance commissioner's regulatory account to the state general fund such amounts as
reflect excess fund balance in the account. [2004 c 260 § 22;
2003 1st sp.s. c 25 § 923; 2002 c 371 § 913; 1987 c 505 § 54;
1986 c 296 § 7.]
Severability—Effective date—2004 c 260: See RCW 48.125.900 and
48.125.901.
Severability—Effective date—2003 1st sp.s. c 25: See notes following RCW 19.28.351.
Severability—Effective date—2002 c 371: See notes following RCW
9.46.100.
Severability—Effective date—1986 c 296: See notes following RCW
48.14.020.
Chapter 48.03
Chapter 48.03 RCW
EXAMINATIONS
Sections
48.03.010
48.03.020
48.03.025
48.03.030
48.03.040
48.03.050
48.03.060
48.03.065
48.03.070
48.03.075
48.03.010
Examination of insurers, bureaus.
Examination of agents, managers, promoters.
Examiners—Scope of examination—Examiners' handbook.
Access to records on examination—Correction of accounts.
Examination reports—Consideration by commissioner—
Orders—Confidentiality.
Reports withheld.
Examination expense.
Appointments by commissioner—Examiners—Exceptions.
Witnesses—Subpoenas—Depositions—Oaths.
Legal protection for commissioner, authorized representatives,
and examiners—Good faith—Attorneys' fees—Payment by
commissioner.
48.03.010 Examination of insurers, bureaus. (1) The
commissioner shall examine the affairs, transactions,
accounts, records, documents, and assets of each authorized
insurer as often as he or she deems advisable. The commissioner shall so examine each insurer holding a certificate of
authority or certificate of registration not less frequently than
every five years. Examination of an alien insurer may be lim(2004 Ed.)
48.03.010
ited to its insurance transactions in the United States. In
scheduling and determining the nature, scope, and frequency
of an examination, the commissioner shall consider such matters as the results of financial statement analyses and ratios,
changes in management or ownership, actuarial opinions,
reports of independent certified public accountants, and other
criteria as set forth in the examiner's handbook adopted by the
National Association of Insurance Commissioners and in
effect when the commissioner exercises discretion under this
section.
(2) As often as the commissioner deems advisable and at
least once in five years, the commissioner shall fully examine
each rating organization and examining bureau licensed in
this state. As often as he or she deems it advisable the commissioner may examine each advisory organization and each
joint underwriting or joint reinsurance group, association, or
organization.
(3) The commissioner shall in like manner examine each
insurer or rating organization applying for authority to do
business in this state.
(4) In lieu of making an examination under this chapter,
the commissioner may accept a full report of the last recent
examination of a nondomestic rating or advisory organization, or joint underwriting or joint reinsurance group, association or organization, as prepared by the insurance supervisory official of the state of domicile or of entry. In lieu of an
examination under this chapter of a foreign or alien insurer
licensed in this state, the commissioner may accept an examination report on the company as prepared by the insurance
department for the company's state of domicile or port-ofentry state until January 1, 1994. Thereafter, an examination
report may be accepted only if: (a) That insurance department was at the time of the examination accredited under the
National Association of Insurance Commissioners' financial
regulation standards and accreditation program; or (b) the
examination was performed either under the supervision of
an accredited insurance department or with the participation
of one or more examiners employed by an accredited state
insurance department who, after a review of the examination
work papers and report, state under oath that the examination
was performed in a manner consistent with the standards and
procedures required by their insurance department.
(5) The commissioner may elect to accept and rely on an
audit report made by an independent certified public accountant for the insurer in the course of that part of the commissioner's examination covering the same general subject matter as the audit. The commissioner may incorporate the audit
report in his or her report of the examination.
(6) For the purposes of completing an examination of
any company under this chapter, the commissioner may
examine or investigate any managing general agent or any
other person, or the business of any managing general agent
or other person, insofar as that examination or investigation
is, in the sole discretion of the commissioner, necessary or
material to the examination of the company. [1993 c 462 §
43; 1982 c 181 § 1; 1979 c 139 § 1; 1947 c 79 § .03.01; Rem.
Supp. 1947 § 45.03.01.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
Severability—1982 c 181: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
[Title 48 RCW—page 9]
48.03.020
Title 48 RCW: Insurance
the application of the provision to other persons or circumstances is not
affected." [1982 c 181 § 28.]
48.03.020
48.03.020 Examination of agents, managers, promoters. For the purpose of ascertaining its condition, or compliance with this code, the commissioner may as often as he
deems advisable examine the accounts, records, documents,
and transactions of:
(1) Any insurance agent, solicitor, broker or adjuster.
(2) Any person having a contract under which he enjoys
in fact the exclusive or dominant right to manage or control a
stock or mutual insurer.
(3) Any person holding the shares of capital stock or policyholder proxies of a domestic insurer for the purpose of
control of its management either as voting trustee or otherwise.
(4) Any person engaged in or proposing to be engaged in
or assisting in the promotion or formation of a domestic
insurer, or an insurance holding corporation, or a stock corporation to finance a domestic mutual insurer or the production of its business, or a corporation to be attorney in fact for
a domestic reciprocal insurer. [1947 c 79 § .03.02; Rem.
Supp. 1947 § 45.03.02.]
48.03.025
48.03.025 Examiners—Scope of examination—
Examiners' handbook. Upon determining that an examination should be conducted, the commissioner or the commissioner's designee shall appoint one or more examiners to perform the examination and instruct them as to the scope of the
examination. In conducting the examination, the examiner
shall observe those guidelines and procedures set forth in the
examiners' handbook adopted by the National Association of
Insurance Commissioners. The commissioner may also
employ such other guidelines or procedures as the commissioner may deem appropriate. [1993 c 462 § 44.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.03.030
48.03.030 Access to records on examination—Correction of accounts. (1) Every person being examined, its
officers, employees, and representatives shall produce and
make freely accessible to the commissioner the accounts,
records, documents, and files in his possession or control
relating to the subject of the examination, and shall otherwise
facilitate the examination.
(2) If the commissioner finds the accounts to be inadequate, or improperly kept or posted, he may employ experts
to rewrite, post or balance them at the expense of the person
being examined. [1947 c 79 § .03.03; Rem. Supp. 1947 §
45.03.03.]
48.03.040
48.03.040 Examination reports—Consideration by
commissioner—Orders—Confidentiality. (1) No later
than sixty days after completion of each examination, the
commissioner shall make a full written report of each examination made by him or her containing only facts ascertained
from the accounts, records, and documents examined and
from the sworn testimony of individuals, and such conclusions and recommendations as may reasonably be warranted
from such facts.
[Title 48 RCW—page 10]
(2) The report shall be certified by the commissioner or
by his or her examiner in charge of the examination, and shall
be filed in the commissioner's office subject to subsection (3)
of this section.
(3) The commissioner shall furnish a copy of the examination report to the person examined not less than ten days
and, unless the time is extended by the commissioner, not
more than thirty days prior to the filing of the report for public inspection in the commissioner's office. If such person so
requests in writing within such period, the commissioner
shall hold a hearing to consider objections of such person to
the report as proposed, and shall not so file the report until
after such hearing and until after any modifications in the
report deemed necessary by the commissioner have been
made.
(4) Within thirty days of the end of the period described
in subsection (3) of this section, unless extended by order of
the commissioner, the commissioner shall consider the
report, together with any written submissions or rebuttals and
any relevant portions of the examiner's workpapers and enter
an order:
(a) Adopting the examination report as filed or with
modification or corrections. If the examination report reveals
that the company is operating in violation of any law, rule, or
order of the commissioner, the commissioner may order the
company to take any action the commissioner considers necessary and appropriate to cure that violation;
(b) Rejecting the examination report with directions to
the examiners to reopen the examination for purposes of
obtaining additional data, documentation, or information, and
refiling under this section; or
(c) Calling for an investigatory hearing with no less than
twenty days' notice to the company for purposes of obtaining
additional documentation, data, information, and testimony.
(5) All orders entered under subsection (4) of this section
must be accompanied by findings and conclusions resulting
from the commissioner's consideration and review of the
examination report, relevant examiner workpapers, and any
written submissions or rebuttals. Such an order is considered
a final administrative decision and may be appealed under the
Administrative Procedure Act, chapter 34.05 RCW, and must
be served upon the company by certified mail, together with
a copy of the adopted examination report. A copy of the
adopted examination report must be sent by certified mail to
each director at the director's residence address.
(6)(a) Upon the adoption of the examination report under
subsection (4) of this section, the commissioner shall continue to hold the content of the examination report as private
and confidential information for a period of five days except
that the order may be disclosed to the person examined.
Thereafter, the commissioner may open the report for public
inspection so long as no court of competent jurisdiction has
stayed its publication.
(b) Nothing in this title prohibits the commissioner from
disclosing the content of an examination report, preliminary
examination report or results, or any matter relating thereto,
to the insurance department of any other state or country, or
to law enforcement officials of this or any other state or
agency of the federal government at any time, so long as the
agency or office receiving the report or matters relating
(2004 Ed.)
Examinations
thereto agrees in writing to hold it confidential and in a manner consistent with this chapter.
(c) If the commissioner determines that regulatory action
is appropriate as a result of any examination, he or she may
initiate any proceedings or actions as provided by law.
(d) Nothing contained in this section requires the commissioner to disclose any information or records that would
indicate or show the existence or content of any investigation
or activity of a criminal justice agency. [1993 c 462 § 45;
1965 ex.s. c 70 § 1; 1947 c 79 § .03.04; Rem. Supp. 1947 §
45.03.04.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.03.050
48.03.070
costs to the commissioner as itemized and billed by the commissioner.
The commissioner or the commissioner's examiners
shall not receive or accept any additional emolument on
account of any examination.
(5) Nothing contained in this chapter limits the commissioner's authority to terminate or suspend any examination in
order to pursue other legal or regulatory action under the
insurance laws of this state. Findings of fact and conclusions
made pursuant to any examination are prima facie evidence
in any legal or regulatory action. [2004 c 260 § 23; 1995 c
152 § 2. Prior: 1993 c 462 § 47; 1993 c 281 § 55; 1981 c 339
§ 2; 1979 ex.s. c 35 § 1; 1947 c 79 § .03.06; Rem. Supp. 1947
§ 45.03.06.]
48.03.050 Reports withheld. The commissioner may
withhold from public inspection any examination or investigation report for so long as he or she deems it advisable, subject to RCW 48.32.080. [1993 c 462 § 46; 1947 c 79 § .03.05;
Rem. Supp. 1947 § 45.03.05.]
Severability—Effective date—2004 c 260: See RCW 48.125.900 and
48.125.901.
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.03.060
48.03.060 Examination expense. (1) Examinations
within this state of any insurer or self-funded multiple
employer welfare arrangement as defined in RCW
48.125.010 domiciled or having its home offices in this state,
other than a title insurer, made by the commissioner or the
commissioner's examiners and employees shall, except as to
fees, mileage, and expense incurred as to witnesses, be at the
expense of the state.
(2) Every other examination, whatsoever, or any part of
the examination of any person domiciled or having its home
offices in this state requiring travel and services outside this
state, shall be made by the commissioner or by examiners
designated by the commissioner and shall be at the expense
of the person examined; but a domestic insurer shall not be
liable for the compensation of examiners employed by the
commissioner for such services outside this state.
(3) When making an examination under this chapter, the
commissioner may retain attorneys, appraisers, independent
actuaries, independent certified public accountants, or other
professionals and specialists as examiners, the cost of which
shall be borne by the person who is the subject of the examination, except as provided in subsection (1) of this section.
(4) The person examined and liable therefor shall reimburse the state upon presentation of an itemized statement
thereof, for the actual travel expenses of the commissioner's
examiners, their reasonable living expense allowance, and
their per diem compensation, including salary and the
employer's cost of employee benefits, at a reasonable rate
approved by the commissioner, incurred on account of the
examination. Per diem salary and expenses for employees
examining insurers domiciled outside the state of Washington shall be established by the commissioner on the basis of
the National Association of Insurance Commissioner's recommended salary and expense schedule for zone examiners,
or the salary schedule established by the Washington personnel resources board and the expense schedule established by
the office of financial management, whichever is higher. A
domestic title insurer shall pay the examination expense and
(2004 Ed.)
Intent—1995 c 152: "The only intent of the legislature in chapter 152,
Laws of 1995 is to correct double amendments. It is not the intent of the legislature to change the substance or effect of any statute previously enacted."
[1995 c 152 § 1.]
Effective date—1993 c 281: See note following RCW 41.06.022.
48.03.065
48.03.065 Appointments by commissioner—Examiners—Exceptions. (1) No examiner may be appointed by the
commissioner if the examiner, either directly or indirectly,
has a conflict of interest or is affiliated with the management
of or owns a pecuniary interest in a person subject to examination under this chapter. This section does not automatically
preclude an examiner from being:
(a) A policyholder or claimant under an insurance policy;
(b) A grantor of a mortgage or similar instrument on the
examiner's residence to a regulated entity if done under customary terms and in the ordinary course of business;
(c) An investment owner in shares of regulated diversified investment companies; or
(d) A settlor or beneficiary of a blind trust into which any
otherwise impermissible holdings have been placed.
(2) Notwithstanding the requirements of subsection (1)
of this section, the commissioner may retain from time to
time, on an individual basis, qualified actuaries, certified
public accountants, or other similar individuals who are independently practicing their professions, even though those
persons may from time to time be similarly employed or
retained by persons subject to examination under this chapter.
[1993 c 462 § 48.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.03.070
48.03.070 Witnesses—Subpoenas—Depositions—
Oaths. (1) The commissioner may take depositions, may
subpoena witnesses or documentary evidence, administer
oaths, and examine under oath any individual relative to the
affairs of any person being examined, or relative to the subject of any hearing or investigation: PROVIDED, That the
provisions of RCW 34.05.446 shall apply in lieu of the provisions of this section as to subpoenas relative to hearings in
rule-making and adjudicative proceedings.
[Title 48 RCW—page 11]
48.03.075
Title 48 RCW: Insurance
(2) The subpoena shall be effective if served within the
state of Washington and shall be served in the same manner
as if issued from a court of record.
(3) Witness fees and mileage, if claimed, shall be
allowed the same as for testimony in a court of record. Witness fees, mileage, and the actual expense necessarily
incurred in securing attendance of witnesses and their testimony shall be itemized, and shall be paid by the person as to
whom the examination is being made, or by the person if
other than the commissioner, at whose request the hearing is
held.
(4) Enforcement of subpoenas shall be in accord with
RCW 34.05.588. [1989 c 175 § 112; 1967 c 237 § 15; 1963
c 195 § 1; 1949 c 190 § 2; 1947 c 79 § .03.07; Rem. Supp.
1949 § 45.03.07.]
Effective date—1989 c 175: See note following RCW 34.05.010.
48.03.075 Legal protection for commissioner, authorized representatives, and examiners—Good faith—
Attorneys' fees—Payment by commissioner. (1) No cause
of action may arise nor may any liability be imposed against
the commissioner, the commissioner's authorized representatives, or an examiner appointed by the commissioner for
statements made or conduct performed in good faith while
carrying out this chapter.
(2) No cause of action may arise nor may any liability be
imposed against any person for the act of communicating or
delivering information or data to the commissioner or the
commissioner's authorized representative or examiner pursuant to an examination made under this chapter, if that act of
communication or delivery was performed in good faith and
without fraudulent intent or the intent to deceive.
(3) This section does not modify a privilege or immunity
previously enjoyed by a person identified in subsection (1) of
this section.
(4) A person identified in subsection (1) of this section is
entitled to an award of attorneys' fees and costs if he or she is
the prevailing party in a civil cause of action for libel, slander, or any other tort arising out of activities in carrying out
this chapter and the party bringing the action was not substantially justified in doing so. For purposes of this section a proceeding is "substantially justified" if it had a reasonable basis
in law or fact at the time that it was initiated.
(5) If a claim is made or threatened of the sort described
in subsection (1) of this section, the commissioner shall provide or pay for the defense of himself or herself, the examiner
or representative, and shall pay a judgment or settlement,
until it is determined that the person did not act in good faith
or did act with fraudulent intent or the intent to deceive.
(6) The immunity, indemnification, and other protections under this section are in addition to those now or hereafter existing under other law. [1993 c 462 § 49.]
48.03.075
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
Chapter 48.04
Chapter 48.04 RCW
HEARINGS AND APPEALS
Place of hearing.
Show cause notice.
Adjourned hearings.
Nonattendance, effect of.
Stay of action on appeal.
48.04.010 Hearings—Waiver—Administrative law
judge. (1) The commissioner may hold a hearing for any
purpose within the scope of this code as he or she may deem
necessary. The commissioner shall hold a hearing:
(a) If required by any provision of this code; or
(b) Except under RCW 48.13.475, upon written demand
for a hearing made by any person aggrieved by any act,
threatened act, or failure of the commissioner to act, if such
failure is deemed an act under any provision of this code, or
by any report, promulgation, or order of the commissioner
other than an order on a hearing of which such person was
given actual notice or at which such person appeared as a
party, or order pursuant to the order on such hearing.
(2) Any such demand for a hearing shall specify in what
respects such person is so aggrieved and the grounds to be
relied upon as basis for the relief to be demanded at the hearing.
(3) Unless a person aggrieved by a written order of the
commissioner demands a hearing thereon within ninety days
after receiving notice of such order, or in the case of a licensee under Title 48 RCW within ninety days after the commissioner has mailed the order to the licensee at the most
recent address shown in the commissioner's licensing records
for the licensee, the right to such hearing shall conclusively
be deemed to have been waived.
(4) If a hearing is demanded by a licensee whose license
has been temporarily suspended pursuant to RCW 48.17.540,
the commissioner shall hold such hearing demanded within
thirty days after receipt of the demand or within thirty days of
the effective date of a temporary license suspension issued
after such demand, unless postponed by mutual consent.
(5) A licensee under this title may request that a hearing
authorized under this section be presided over by an administrative law judge assigned under chapter 34.12 RCW. Any
such request shall not be denied.
(6) Any hearing held relating to RCW 48.20.025,
48.44.017, or 48.46.062 shall be presided over by an administrative law judge assigned under chapter 34.12 RCW.
[2000 c 221 § 8; 2000 c 79 § 1; 1990 1st ex.s. c 3 § 1; 1988 c
248 § 2; 1967 c 237 § 16; 1963 c 195 § 2; 1947 c 79 § .04.01;
Rem. Supp. 1947 § 45.04.01.]
48.04.010
Reviser's note: This section was amended by 2000 c 79 § 1 and by
2000 c 221 § 8, each without reference to the other. Both amendments are
incorporated in the publication of this section under RCW 1.12.025(2). For
rule of construction, see RCW 1.12.025(1).
Effective date—2000 c 79: "Except for sections 26, 38, and 39 of this
act, this act is necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its existing public
institutions, and takes effect immediately [March 23, 2000]." [2000 c 79 §
51.]
Severability—2000 c 79: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [2000 c 79 § 48.]
48.04.020
Sections
48.04.010
48.04.020
48.04.030
48.04.050
48.04.060
48.04.070
48.04.140
Hearings—Waiver—Administrative law judge.
Stay of action.
[Title 48 RCW—page 12]
48.04.020 Stay of action. (1) Such demand for a hearing received by the commissioner prior to the effective date
of action taken or proposed to be taken by him or her shall
(2004 Ed.)
Insurers—General Requirements
stay such action pending the hearing, except as to action
taken or proposed
(a) under an order on hearing, or
(b) under an order pursuant to an order on hearing, or
(c) under an order to make good an impairment of the
assets of an insurer, or
(d) under an order of temporary suspension of license
issued pursuant to RCW 48.17.540 as now or hereafter
amended.
(2) In any case where an automatic stay is not provided
for, and if the commissioner after written request therefor
fails to grant a stay, the person aggrieved thereby may apply
to the superior court for Thurston county for a stay of the
commissioner's action.
(3) A stay of action is not available for actions taken by
the commissioner under RCW 48.13.475. [2000 c 221 § 9;
1982 c 181 § 2; 1949 c 190 § 3; 1947 c 79 § .04.02; Rem.
Supp. 1949 § 45.04.02.]
Severability—1982 c 181: See note following RCW 48.03.010.
Chapter 48.05 RCW
INSURERS—GENERAL REQUIREMENTS
Chapter 48.05
Sections
48.05.010
48.05.030
48.05.040
48.05.045
48.05.050
48.05.060
48.05.070
48.05.073
48.05.080
48.05.090
48.05.100
48.05.105
48.05.110
48.05.120
48.05.130
48.05.140
48.05.150
48.05.160
48.05.170
48.05.180
48.04.030
48.04.030 Place of hearing. The hearing shall be held
at the place designated by the commissioner, and at his discretion it may be open to the public. [1947 c 79 § .04.03;
Rem. Supp. 1947 § 45.04.03.]
48.04.050
48.04.050 Show cause notice. If any person is entitled
to a hearing by any provision of this code before any proposed action is taken, the notice of the proposed action may
be in the form of a notice to show cause stating that the proposed action may be taken unless such person shows cause at
a hearing to be held as specified in the notice, why the proposed action should not be taken, and stating the basis of the
proposed action. [1947 c 79 § .04.05; Rem. Supp. 1947 §
45.04.05.]
48.05.185
48.05.190
48.05.200
48.05.210
48.05.215
48.05.220
48.05.250
48.05.270
48.05.280
48.05.290
48.05.310
48.05.320
48.05.330
48.05.340
48.05.350
48.05.360
48.05.370
48.04.060
48.04.060 Adjourned hearings. The commissioner
may adjourn any hearing from time to time and from place to
place without other notice of the adjourned hearing than
announcement thereof at the hearing. [1947 c 79 § .04.06;
Rem. Supp. 1947 § 45.04.06.]
48.04.070
48.04.070 Nonattendance, effect of. The validity of
any hearing held in accordance with the notice thereof shall
not be affected by failure of any person to attend or to remain
in attendance. [1947 c 79 § .04.07; Rem. Supp. 1947 §
45.04.07.]
48.04.140
48.04.140 Stay of action on appeal. (1) The taking of
an appeal shall not stay any action taken or proposed to be
taken by the commissioner under the order appealed from
unless a stay is granted by the court at a hearing held as part
of the proceedings on appeal.
(2) A stay shall not be granted by the court in any case
where the granting of a stay would tend to injure the public
interest. In granting a stay, the court may require of the person taking the appeal such security or other conditions as it
deems proper. [1988 c 248 § 3; 1947 c 79 § .04.14; Rem.
Supp. 1947 § 45.04.14.]
(2004 Ed.)
Chapter 48.05
48.05.380
48.05.390
48.05.400
48.05.410
48.05.430
48.05.435
48.05.440
48.05.445
48.05.450
48.05.455
48.05.460
48.05.465
48.05.470
48.05.475
48.05.480
48.05.485
48.05.490
48.05.510
48.05.515
48.05.520
"Domestic," "foreign," "alien" insurers defined.
Certificate of authority required.
Certificate of authority—Qualifications.
Certificate of authority not to be issued to governmentally
owned insurer.
"Charter" defined.
"Capital funds" defined.
Application for certificate of authority.
Filing of financial statements.
Foreign insurers—Deposit.
Alien insurers—Assets required—Trust deposit.
Alien insurers—Deposit resolution.
Foreign or alien insurers—Three years active transacting
required—Exception.
Issuance of certificate of authority.
Certificate of authority—Duration, renewal, amendment.
Certificate of authority—Mandatory refusal, revocation, suspension.
Certificate of authority—Discretionary refusal, revocation,
suspension.
Notice of intention to refuse, revoke, or suspend.
Period of suspension.
Reauthorization, limitation upon.
Notice of refusal, revocation, suspension—Effect upon agents'
authority.
Fine in addition or in lieu of suspension, revocation, or refusal.
Name of insurer.
Commissioner as attorney for service of process—Exception.
Service of process—Procedure.
Unauthorized foreign or alien insurers—Jurisdiction of state
courts—Service of process—Procedure.
Venue of actions against insurer.
Annual statement.
Alien insurer—Capital funds, determination.
Records and accounts of insurers.
Withdrawal of insurer—Reinsurance.
General agents, managers—Appointment—Powers—Licensing.
Reports of fire losses.
Insurers—Combination of kinds of insurance authorized—
Exceptions.
Capital and surplus requirements.
General casualty insurer combining disability, fidelity, insurance.
Special surplus requirements for certain combinations.
Fiduciary relationship to insurer of officers, directors or corporation holding controlling interest.
Reports by property and casualty insurers—Rules.
Reports by various insurers—Contents.
Annual filing and fee to National Association of Insurance
Commissioners—Penalty.
Health care practitioner risk management training.
Definitions.
Report of RBC levels—Formula for determining levels—
Inaccurate reports adjusted by commissioner.
Company action level event—Definition—RBC plan—Commissioner's review.
Regulatory action level event—Definition—Commissioner's
duties—Corrective actions.
Authorized control level event—Definition—Commissioner's
duties.
Mandatory control level event—Definition—Commissioner's
duties.
Insurer's right to a hearing—Request—Commissioner sets
date.
Confidentiality of RBC reports and plans—Use of information
for comparative purposes—Use of information to monitor
solvency.
Regulation of capital and surplus requirements is supplemental—Commissioner may grant exemptions.
RBC report from foreign or alien insurers—Request of commissioner—Commissioner's options.
No liability for regulation of capital and surplus requirements.
Notices by commissioner—When effective.
RBC reports for 1995—Requirements.
Disclosure of certain material transactions—Insurer's report—
Information is confidential.
Material acquisitions or dispositions.
Asset acquisitions—Asset dispositions.
[Title 48 RCW—page 13]
48.05.010
48.05.525
48.05.530
48.05.535
48.05.900
Title 48 RCW: Insurance
Report of a material acquisition or disposition of assets—
Information required.
Material nonrenewals, cancellations, or revisions of ceded
reinsurance agreements.
Report of a material nonrenewal, cancellation, or revision of
ceded reinsurance agreements—Information required.
Severability—1995 c 83.
Agents, brokers, solicitors, and adjusters: Chapter 48.17 RCW.
Deposit of insurers: Chapter 48.16 RCW.
Federal home loan bank as depositary: RCW 30.32.040.
Fees and taxes: Chapter 48.14 RCW.
(2) Have capital funds as required by this code, based
upon the type and domicile of the insurer and the kinds of
insurance proposed to be transacted; and
(3) Transact or propose to transact in this state insurances authorized by its charter, and only such insurance as
meets the standards and requirements of this code; and
(4) Fully comply with, and qualify according to, the
other provisions of this code. [1957 c 193 § 1; 1947 c 79 §
.05.04; Rem. Supp. 1947 § 45.05.04.]
Health care services: Chapter 48.44 RCW.
48.05.045
Insuring powers and capital funds required: Chapter 48.11 RCW.
Interlocking ownership, management: RCW 48.30.250.
Policy forms, execution, filing, etc.: Chapter 48.18 RCW.
Rates and rating organizations: Chapter 48.19 RCW.
Stamping bureau: RCW 48.19.410.
Unauthorized insurers: Chapter 48.15 RCW.
Unfair practices: Chapter 48.30 RCW.
48.05.010
48.05.010 "Domestic," "foreign," "alien" insurers
defined. (1) A "domestic" insurer is one formed under the
laws of this state.
(2) A "foreign" insurer is one formed under the laws of
the United States, of a state or territory of the United States
other than this state, or of the District of Columbia.
(3) An "alien" insurer is one formed under the laws of a
nation other than the United States.
(4) For the purposes of this code, "United States," when
used to signify place, means only the states of the United
States, the government of Puerto Rico and the District of
Columbia. [1961 c 194 § 1; 1947 c 79 § .05.01; Rem. Supp.
1947 § 45.05.01.]
"Insurer" defined: RCW 48.01.050.
48.05.030
48.05.030 Certificate of authority required. (1) No
person shall act as an insurer and no insurer shall transact
insurance in this state other than as authorized by a certificate
of authority issued to it by the commissioner and then in
force; except, as to such transactions as are expressly otherwise provided for in this code.
(2) Every certificate of authority shall specify the name
of the insurer, the location of its principal office, the name
and location of the principal office of its attorney in fact if a
reciprocal insurer, and the kind or kinds of insurance it is
authorized to transact in this state.
(3) The investigation and adjustment of any claim in this
state arising under an insurance contract issued by an unauthorized insurer, shall not be deemed to constitute the transacting of insurance in this state. [1947 c 79 § .05.03; Rem.
Supp. 1947 § 45.05.03.]
48.05.040
48.05.040 Certificate of authority—Qualifications.
To qualify for and hold a certificate of authority an insurer
must:
(1) Be a stock, mutual, or reciprocal insurer of the same
general type as may be formed as a domestic insurer under
the provisions of chapter 48.06 RCW of this code, but this
requirement shall not apply as to domestic mutual property
insurers which, as of January 1, 1957, were lawfully transacting insurance on the assessment plan; and
[Title 48 RCW—page 14]
48.05.045 Certificate of authority not to be issued to
governmentally owned insurer. No certificate of authority
shall be issued to or exist with respect to any insurer which is
owned and controlled, in whole or in substantial part, by any
government or governmental agency. [1957 c 193 § 2.]
48.05.050
48.05.050 "Charter" defined. "Charter" means articles of incorporation, articles of agreement, articles of association of a corporation, or other basic constituent document of
a corporation, or subscribers' agreement and attorney in fact
agreement of a reciprocal insurer. [1947 c 79 § .05.05; Rem.
Supp. 1947 § 45.05.05.]
48.05.060
48.05.060 "Capital funds" defined. "Capital funds"
means the excess of the assets of an insurer over its liabilities.
Capital stock, if any, shall not be deemed to be a liability for
the purposes of this section. [1947 c 79 § .05.06; Rem. Supp.
1947 § 45.05.06.]
48.05.070
48.05.070 Application for certificate of authority. To
apply for an original certificate of authority an insurer shall:
(1) File with the commissioner its request therefor showing:
(a) Its name, home office location, type of insurer, organization date, and state or country of its domicile.
(b) The kinds of insurance it proposes to transact.
(c) Additional information as the commissioner may reasonably require.
(2) File with the commissioner:
(a) A copy of its charter as amended, certified, if a foreign or alien insurer, by the proper public officer of the state
or country of domicile.
(b) A copy of its bylaws, certified by its proper officer.
(c) A statement of its financial condition, management,
and affairs on a form satisfactory to or furnished by the commissioner.
(d) If a foreign or alien insurer, or a domestic reciprocal
insurer, an appointment of the commissioner as its attorney to
receive service of legal process.
(e) If an alien insurer, a copy of the appointment and
authority of its United States manager, certified by its proper
officer.
(f) If a foreign or alien insurer, a certificate from the
proper public official of its state or country of domicile showing that it is duly organized and is authorized to transact the
kinds of insurance proposed to be transacted.
(g) If a domestic reciprocal insurer, the declaration
required by RCW 48.10.090 of this code.
(2004 Ed.)
Insurers—General Requirements
(h) Other documents or stipulations as the commissioner
may reasonably require to evidence compliance with the provisions of this code.
(3) Deposit with the commissioner the fees required by
this code to be paid for filing the accompanying documents,
and for the certificate of authority, if granted. [1947 c 79 §
.05.07; Rem. Supp. 1947 § 45.05.07.]
48.05.073
48.05.073 Filing of financial statements. Every
insurer holding a certificate of authority from the commissioner shall file its financial statements as required by this
code and by the commissioner in accordance with the
accounting practices and procedures manuals as adopted by
the national association of insurance commissioners, unless
otherwise provided by law. [1999 c 33 § 1.]
48.05.080
48.05.080 Foreign insurers—Deposit. (1) Prior to the
issuance of a certificate of authority to a foreign insurer, it
shall make a deposit of assets with the commissioner for the
protection of all its policyholders, or of all of its policyholders and obligees or its policyholders and obligees within the
United States, in amount and kind, subject to RCW
48.14.040, the same as is required of a like domestic insurer
transacting like kinds of insurance.
(2) In lieu of such deposit or part thereof the commissioner may accept the certificate of the public official having
supervision over insurers in any other state to the effect that a
like deposit by such insurer or like part thereof in equal or
greater amount is held in public custody in such state. [1955
c 86 § 1; 1947 c 79 § .05.08; Rem. Supp. 1947 § 45.05.08.]
Effective date—1955 c 86: "This act shall become effective on January
1, 1956." [1955 c 86 § 18.]
Supervision of transfers—1955 c 86: "All transfers authorized under
this act shall be made under the supervision of the state auditor." [1955 c 86
§ 19.]
48.05.090
48.05.090 Alien insurers—Assets required—Trust
deposit. (1) An alien insurer shall not be authorized to transact insurance in this state unless it maintains within the
United States assets in amount not less than its outstanding
liabilities arising out of its insurance transactions in the
United States, nor unless it maintains a trust deposit in an
amount not less than the required reserves under its policies
resulting from such transactions (after deducting, in the case
of a life insurer, the amount of outstanding policy loans on
such policies) plus assets equal to the larger of the following
sums:
(a) The largest amount of deposit required under this title
to be made in this state by any type of domestic insurer transacting like kinds of insurance; or
(b) Two hundred thousand dollars.
(2) The trust deposit shall be for the security of all policyholders or policyholders and obligees of the insurer in the
United States. It shall not be subject to diminution below the
amount currently determined in accordance with subsection
(1) of this section so long as the insurer has outstanding any
liabilities arising out of its business transacted in the United
States.
(3) The trust deposit shall be maintained with public
depositaries or trust institutions within the United States
(2004 Ed.)
48.05.140
approved by the commissioner. [1949 c 190 § 4; 1947 c 79 §
.05.09; Rem. Supp. 1949 § 45.05.09.]
48.05.100
48.05.100 Alien insurers—Deposit resolution. An
alien insurer shall file with the commissioner a certified copy
of the resolution of its governing board by which the trust
deposit was established, together with a certified copy of any
trust agreement under which the deposit is held. [1947 c 79 §
.05.10; Rem. Supp. 1947 § 45.05.10.]
48.05.105
48.05.105 Foreign or alien insurers—Three years
active transacting required—Exception. No certificate of
authority shall be granted to a foreign or alien applicant that
has not actively transacted for three years the classes of insurance for which it seeks to be admitted; except, the foregoing
shall not apply to any subsidiary of a seasoned, reputable
insurer that has held a certificate of authority in this state for
at least three years. [1967 c 150 § 2.]
48.05.110
48.05.110 Issuance of certificate of authority. If the
commissioner finds that an insurer has met the requirements
for and is fully entitled thereto under this code, he shall issue
to it a proper certificate of authority. If the commissioner
does not so find, the authority shall be refused within a reasonable length of time following completion by the insurer of
the application therefor. [1947 c 79 § .05.11; Rem. Supp.
1947 § 45.05.11.]
48.05.120
48.05.120 Certificate of authority—Duration,
renewal, amendment. (1) All certificates of authority shall
continue in force until suspended, revoked, or not renewed. A
certificate shall be subject to renewal annually on the first day
of July upon application of the insurer and payment of the fee
therefor. If not so renewed, the certificate shall expire as of
the thirtieth day of June next preceding.
(2) The commissioner may amend a certificate of authority at any time in accordance with changes in the insurer's
charter or insuring powers. [1957 c 193 § 3; 1955 c 31 § 1;
1947 c 79 § .05.12; Rem. Supp. 1947 § 45.05.12.]
48.05.130
48.05.130 Certificate of authority—Mandatory
refusal, revocation, suspension. The commissioner shall
refuse to renew or shall revoke or suspend an insurer's certificate of authority, in addition to other grounds therefor in this
code, if the insurer:
(1) Is a foreign or alien insurer and no longer qualifies or
meets the requirements for the authority; or, is a domestic
mutual or domestic reciprocal insurer, and fails to make good
a deficiency of assets as required by the commissioner.
(2) Is a domestic stock insurer and has assets less in
amount than its liabilities, including its capital stock as a liability, and has failed to make good such deficiency as
required by the commissioner.
(3) Knowingly exceeds its charter powers or its certificate of authority. [1947 c 79 § .05.13; Rem. Supp. 1947 §
45.05.13.]
48.05.140
48.05.140 Certificate of authority—Discretionary
refusal, revocation, suspension. The commissioner may
refuse, suspend, or revoke an insurer's certificate of authority,
[Title 48 RCW—page 15]
48.05.150
Title 48 RCW: Insurance
in addition to other grounds therefor in this code, if the
insurer:
(1) Fails to comply with any provision of this code other
than those for violation of which refusal, suspension, or revocation is mandatory, or fails to comply with any proper order
or regulation of the commissioner.
(2) Is found by the commissioner to be in such condition
that its further transaction of insurance in this state would be
hazardous to policyholders and the people in this state.
(3) Refuses to remove or discharge a director or officer
who has been convicted of any crime involving fraud, dishonesty, or like moral turpitude.
(4) Usually compels claimants under policies either to
accept less than the amount due them or to bring suit against
it to secure full payment of the amount due.
(5) Is affiliated with and under the same general management, or interlocking directorate, or ownership as another
insurer which transacts insurance in this state without having
a certificate of authority therefor, except as is permitted by
this code.
(6) Refuses to be examined, or if its directors, officers,
employees or representatives refuse to submit to examination
or to produce its accounts, records, and files for examination
by the commissioner when required, or refuse to perform any
legal obligation relative to the examination.
(7) Fails to pay any final judgment rendered against it in
this state upon any policy, bond, recognizance, or undertaking issued or guaranteed by it, within thirty days after the
judgment became final or within thirty days after time for
taking an appeal has expired, or within thirty days after dismissal of an appeal before final determination, whichever
date is the later.
(8) Is found by the commissioner, after investigation or
upon receipt of reliable information, to be managed by persons, whether by its directors, officers, or by any other
means, who are incompetent or untrustworthy or so lacking
in insurance company managerial experience as to make a
proposed operation hazardous to the insurance-buying public; or that there is good reason to believe it is affiliated
directly or indirectly through ownership, control, reinsurance
or other insurance or business relations, with any person or
persons whose business operations are or have been marked,
to the detriment of policyholders or stockholders or investors
or creditors or of the public, by bad faith or by manipulation
of assets, or of accounts, or of reinsurance.
(9) Does business through agents or brokers in this state
or in any other state who are not properly licensed under
applicable laws and duly enacted regulations adopted pursuant thereto. [1973 1st ex.s. c 152 § 1; 1969 ex.s. c 241 § 3;
1967 c 150 § 4; 1947 c 79 § .05.14; Rem. Supp. 1947 §
45.04.14.]
Severability—1973 1st ex.s. c 152: "If any provision of this 1973
amendatory act, or its application to any person or circumstance is held
invalid, the remainder of the act, or the application of the provision to other
persons or circumstances is not affected." [1973 1st ex.s. c 152 § 7.]
48.05.150
48.05.150 Notice of intention to refuse, revoke, or
suspend. The commissioner shall give an insurer notice of
his intention to suspend, revoke, or refuse to renew its certificate of authority not less than ten days before the order of
suspension, revocation or refusal is to become effective;
[Title 48 RCW—page 16]
except that no advance notice of intention is required where
the order results from a domestic insurer's failure to make
good a deficiency of assets as required by the commissioner.
[1947 c 79 § .05.15; Rem. Supp. 1947 § 45.05.15.]
48.05.160
48.05.160 Period of suspension. The commissioner
shall not suspend an insurer's certificate of authority for a
period in excess of one year, and he shall state in his order of
suspension the period during which it shall be effective.
[1947 c 79 § .05.16; Rem. Supp. 1947 § 45.05.16.]
48.05.170
48.05.170 Reauthorization, limitation upon. No
insurer whose certificate of authority has been suspended,
revoked, or refused shall subsequently be authorized unless
the grounds for such suspension, revocation, or refusal no
longer exist and the insurer is otherwise fully qualified.
[1947 c 79 § .05.17; Rem. Supp. 1947 § 45.05.17.]
48.05.180
48.05.180 Notice of refusal, revocation, suspension—
Effect upon agents' authority. Upon the suspension, revocation or refusal of an insurer's certificate of authority, the
commissioner shall give notice thereof to the insurer and
shall likewise suspend, revoke or refuse the authority of its
agents to represent it in this state and give notice thereof to
the agents. [1947 c 79 § .05.18; Rem. Supp. 1947 §
45.05.18.]
48.05.185
48.05.185 Fine in addition or in lieu of suspension,
revocation, or refusal. After hearing or with the consent of
the insurer and in addition to or in lieu of the suspension,
revocation, or refusal to renew any certificate of authority the
commissioner may levy a fine upon the insurer in an amount
not less than two hundred fifty dollars and not more than ten
thousand dollars. The order levying such fine shall specify
the period within which the fine shall be fully paid and which
period shall not be less than fifteen nor more than thirty days
from the date of such order. Upon failure to pay any such fine
when due the commissioner shall revoke the certificate of
authority of the insurer if not already revoked, and the fine
shall be recovered in a civil action brought in behalf of the
commissioner by the attorney general. Any fine so collected
shall be paid by the commissioner to the state treasurer for the
account of the general fund. [1980 c 102 § 1; 1975 1st ex.s. c
266 § 3; 1965 ex.s. c 70 § 3.]
Severability—1975 1st ex.s. c 266: See note following RCW
48.01.010.
48.05.190
48.05.190 Name of insurer. (1) Every insurer shall
conduct its business in its own legal name.
(2) No insurer shall assume or use a name deceptively
similar to that of any other authorized insurer. [1947 c 79 §
.05.19; Rem. Supp. 1947 § 45.05.19.]
48.05.200
48.05.200 Commissioner as attorney for service of
process—Exception. (1) Each authorized foreign or alien
insurer shall appoint the commissioner as its attorney to
receive service of, and upon whom shall be served, all legal
process issued against it in this state upon causes of action
arising within this state. Service upon the commissioner as
attorney shall constitute service upon the insurer. Service of
(2004 Ed.)
Insurers—General Requirements
legal process against such insurer can be had only by service
upon the commissioner, except actions upon contractor
bonds pursuant to RCW 18.27.040, where service may be
upon the department of labor and industries.
(2) With the appointment the insurer shall designate by
name and address the person to whom the commissioner shall
forward legal process so served upon him or her. The insurer
may change such person by filing a new designation.
(3) The appointment of the commissioner as attorney
shall be irrevocable, shall bind any successor in interest or to
the assets or liabilities of the insurer, and shall remain in
effect as long as there is in force in this state any contract
made by the insurer or liabilities or duties arising therefrom.
[1985 c 264 § 3; 1947 c 79 § .05.20; Rem. Supp. 1947 §
45.05.20.]
48.05.210
48.05.210 Service of process—Procedure. (1) Duplicate copies of legal process against an insurer for whom the
commissioner is attorney shall be served upon him either by
a person competent to serve a summons, or by registered
mail. At the time of service the plaintiff shall pay to the commissioner ten dollars, taxable as costs in the action.
(2) The commissioner shall forthwith send one of the
copies of the process, by registered mail with return receipt
requested, to the person designated for the purpose by the
insurer in its most recent such designation filed with the commissioner.
(3) The commissioner shall keep a record of the day and
hour of service upon him of all legal process. No proceedings
shall be had against the insurer, and the insurer shall not be
required to appear, plead, or answer until the expiration of
forty days after the date of service upon the commissioner.
[1981 c 339 § 3; 1947 c 79 § .05.21; Rem. Supp. 1947 §
45.05.21.]
48.05.215
48.05.215 Unauthorized foreign or alien insurers—
Jurisdiction of state courts—Service of process—Procedure. (1) Any foreign or alien insurer not thereunto authorized by the commissioner, whether it be a surplus lines
insurer operating under chapter 48.15 RCW or not, who, by
mail or otherwise, solicits insurance business in this state or
transacts insurance business in this state as defined by RCW
48.01.060, thereby submits itself to the jurisdiction of the
courts of this state in any action, suit or proceeding instituted
by or on behalf of an insured, beneficiary or the commissioner arising out of such unauthorized solicitation of insurance business, including, but not limited to, an action for
injunctive relief by the commissioner.
(2) In any such action, suit or proceeding instituted by or
on behalf of an insured or beneficiary, service of legal process against such unauthorized foreign or alien insurer may
be made by service of duplicate copies of legal process on the
commissioner by a person competent to serve a summons or
by registered mail. At the time of service the plaintiff shall
pay to the commissioner ten dollars, taxable as costs in the
action. The commissioner shall forthwith mail one of the copies of the process, by registered mail with return receipt
requested, to the defendant at its last known principal place of
business. The defendant insurer shall have forty days from
(2004 Ed.)
48.05.270
the date of the service on the commissioner within which to
plead, answer or otherwise defend the action.
(3) In any such action, suit or proceeding by the commissioner, service of legal process against such unauthorized foreign or alien insurer may be made by personal service of legal
process upon any officer of such insurer at its last known
principal place of business outside the state of Washington.
The summons upon such unauthorized foreign or alien
insurer shall contain the same requisites and be served in like
manner as personal summons within the state of Washington;
except, the insurer shall have forty days from the date of such
personal service within which to plead, answer or otherwise
defend the action. [1981 c 339 § 4; 1967 c 150 § 3.]
48.05.220
48.05.220 Venue of actions against insurer. Suit upon
causes of action arising within this state against an insurer
upon an insurance contract shall be brought in the county
where the cause of action arose. [1947 c 79 § .05.22; Rem.
Supp. 1947 § 45.05.22.]
48.05.250
48.05.250 Annual statement. (1) Each authorized
insurer shall annually, before the first day of March, file with
the commissioner a true statement of its financial condition,
transactions, and affairs as of the thirty-first day of December
preceding. The statement forms shall be in general form and
context as approved by the National Association of Insurance
Commissioners for the kinds of insurance to be reported
upon, and as supplemented for additional information
required by this code and by the commissioner. The statement shall be verified by the oaths of at least two of the
insurer's officers.
(2) The annual statement of an alien insurer shall relate
only to its transactions and affairs in the United States unless
the commissioner requires otherwise. The statement shall be
verified by the insurer's United States manager or by its officers duly authorized.
(3) The commissioner shall suspend or revoke the certificate of authority of any insurer failing to file its annual statement when due or during any extension of time therefor
which the commissioner, for good cause, may grant. [1983 c
85 § 1; 1947 c 79 § .05.25; Rem. Supp. 1947 § 45.05.25.]
Advertising of financial condition: RCW 48.30.070.
Assets and liabilities: Chapter 48.12 RCW.
False financial statements: RCW 48.30.030.
48.05.270
48.05.270 Alien insurer—Capital funds, determination. (1) The capital funds of an alien insurer shall be
deemed to be the amount by which its assets, deposited and
otherwise held as provided in RCW 48.05.090 exceed its liabilities with respect to its business transacted in the United
States.
(2) Assets of such insurer held in any state for the special
protection of policyholders and obligees in such state shall
not constitute assets of the insurer for the purposes of this
code. Liabilities of the insurer so secured by such assets, but
not exceeding the amount of such assets, may be deducted in
computing the insurer's liabilities for the purpose of this section. [1947 c 79 § .05.27; Rem. Supp. 1947 § 45.05.27.]
[Title 48 RCW—page 17]
48.05.280
Title 48 RCW: Insurance
48.05.280 Records and accounts of insurers. Every
insurer shall keep full and adequate accounts and records of
its assets, obligations, transactions, and affairs. [1947 c 79 §
.05.28; Rem. Supp. 1947 § 45.05.28.]
48.05.280
the manner provided in RCW 48.17.540. [1995 c 338 § 1;
1982 c 181 § 17; 1947 c 79 § .05.31; Rem. Supp. 1947 §
45.05.31.]
Severability—1982 c 181: See note following RCW 48.03.010.
48.05.290
48.05.290 Withdrawal of insurer—Reinsurance. (1)
No insurer shall withdraw from this state until its direct liability to its policyholders and obligees under all its insurance
contracts then in force in this state has been assumed by
another authorized insurer under an agreement approved by
the commissioner. In the case of a life insurer, its liability
pursuant to contracts issued in this state in settlement of proceeds under its policies shall likewise be so assumed.
(2) The commissioner may waive this requirement if he
finds upon examination that a withdrawing insurer is then
fully solvent and that the protection to be given its policyholders in this state will not be impaired by the waiver.
(3) The assuming insurer shall within a reasonable time
replace the assumed insurance contracts with its own, or by
endorsement thereon acknowledge its liability thereunder.
[1947 c 79 § .05.29; Rem. Supp. 1947 § 45.05.29.]
48.05.310 General agents, managers—Appointment—Powers—Licensing. (1) An insurer appointing any
person as its general agent or manager to represent it as such
in this state shall file notice of the appointment with the commissioner on forms prescribed and furnished by the commissioner.
(2) Any such general agent or manager shall have such
authority, consistent with this code, as may be conferred by
the insurer. A general agent resident in this state and licensed,
as in this section provided, may exercise the powers conferred by this code upon agents licensed for the kinds of
insurance which the general agent is authorized to transact for
the insurer so appointing him.
(3) Any such general agent may accept applications for
insurance from licensed agents who are not appointed by the
insurer of such general agent where the risk involved is
placed in a nonstandard or specialty market of an authorized
insurer as defined by regulation of the commissioner. Such
nonstandard or specialty business shall not be bound by any
agent not appointed by the insurer. A general agent may supply such licensed, nonappointed agent with material to write
nonstandard or specialty insurance business including, but
not limited to, applications for insurance, underwriting criteria, and rates. A general agent shall not provide any licensed,
nonappointed agent with indicia of authority to bind an insurance risk and the general agent and nonappointed agent shall
provide written disclaimers of binding authority to an applicant or prospective insured in such form as prescribed by the
commissioner.
(4) The appointment of a resident general agent shall not
be effective unless the person so appointed is licensed as the
general agent of such insurer by the commissioner upon
application and payment of the fee therefor as provided in
RCW 48.14.010.
(5) A general agent's license and its renewal shall be in
accordance with chapter 48.17 RCW as applicable to agents
and brokers.
(6) The commissioner may deny, suspend, or revoke any
such license for any cause specified in RCW 48.17.530 and in
48.05.320 Reports of fire losses. (1) Each authorized
insurer shall promptly report to the chief of the Washington
state patrol, through the director of fire protection, upon
forms as prescribed and furnished by him or her, each fire
loss of property in this state reported to it and whether the loss
is due to criminal activity or to undetermined causes.
(2) Each such insurer shall likewise report to the chief of
the Washington state patrol, through the director of fire protection, upon claims paid by it for loss or damage by fire in
this state. Copies of all reports required by this section shall
be promptly transmitted to the state insurance commissioner.
[1995 c 369 § 24; 1986 c 266 § 66; 1985 c 470 § 16; 1947 c
79 § .05.32; Rem. Supp. 1947 § 45.05.32.]
48.05.320
Effective date—1995 c 369: See note following RCW 43.43.930.
Severability—1986 c 266: See note following RCW 38.52.005.
Severability—Effective date—1985 c 470: See notes following RCW
48.48.030.
48.05.310
[Title 48 RCW—page 18]
48.05.330
48.05.330 Insurers—Combination of kinds of insurance authorized—Exceptions. An insurer which otherwise
qualifies therefor may be authorized to transact any one kind
or combinations of kinds of insurance as defined in chapter
48.11 RCW, except:
(1) A life insurer may grant annuities and may be authorized to transact in addition only disability insurance; except,
that the commissioner may, if the insurer otherwise qualifies
therefor, continue so to authorize any life insurer which
immediately prior to June 13, 1963 was lawfully authorized
to transact in this state a kind or kinds of insurance in addition
to life and disability insurances and annuity business.
(2) A reciprocal insurer shall not transact life insurance.
(3) A title insurer shall be a stock insurer and shall not
transact any other kind of insurance. This provision shall not
prohibit the ceding of reinsurance by a title insurer to insurers
other than mutual or reciprocal insurers. [1963 c 195 § 6.]
48.05.340
48.05.340 Capital and surplus requirements. (1)
Subject to RCW 48.05.350 and 48.05.360 to qualify for
authority to transact any one kind of insurance as defined in
chapter 48.11 RCW or combination of kinds of insurance as
shown below, a foreign or alien insurer, whether stock or
mutual, or a domestic insurer hereafter formed shall possess
unimpaired paid-in capital stock, if a stock insurer, or unimpaired surplus if a mutual insurer, and additional funds in surplus, as follows, and shall thereafter maintain unimpaired a
combined total of: (a) The paid-in capital stock if a stock
insurer or surplus if a mutual insurer, plus (b) such additional
funds in surplus equal to the total of the following initial
requirements:
Kind or kinds
of insurance
Life . . . . . . . . . . . . .
Disability . . . . . . . . .
Life and disability . .
Paid-in capital
stock or
basic surplus
$2,000,000
2,000,000
2,400,000
Additional
surplus
$2,000,000
2,000,000
2,400,000
(2004 Ed.)
Insurers—General Requirements
Property . . . . . . . . . .
Marine & transportation . . . . . . . . . .
General casualty . . .
Vehicle . . . . . . . . . . .
Surety . . . . . . . . . . . .
Any two of the following kinds of insurance: Property,
marine & transportation, general
casualty, vehicle,
surety, disability
Multiple lines (all insurances except life
and title insurance)
Title (in accordance
with the provisions
of chapter 48.29
RCW)
2,000,000
2,000,000
2,000,000
2,400,000
2,000,000
2,000,000
2,000,000
2,400,000
2,000,000
2,000,000
3,000,000
3,000,000
3,000,000
3,000,000
(2) Capital and surplus requirements are based upon all
the kinds of insurance transacted by the insurer wherever it
may operate or propose to operate, whether or not only a portion of such kinds are to be transacted in this state.
(3) Until December 31, 1996, a foreign or alien insurer
holding a certificate of authority to transact insurance in this
state immediately prior to June 9, 1994, may continue to be
authorized to transact the same kinds of insurance as long as
it is otherwise qualified for such authority. A domestic
insurer holding a certificate of authority to transact insurance
in this state immediately prior to June 9, 1994, may continue
to be authorized to transact the same kinds of insurance as
long as it is otherwise qualified for such an authority and
thereafter maintains unimpaired the amount of paid-in capital
stock, if a stock insurer, or basic surplus, if a mutual or reciprocal insurer, and special or additional surplus as required of
it under laws in force immediately prior to June 9, 1994.
[1995 c 83 § 14; 1994 c 171 § 1; 1993 c 462 § 50; 1991 sp.s.
c 5 § 1; 1982 c 181 § 3; 1980 c 135 § 1; 1967 c 150 § 5; 1963
c 195 § 7.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
Effective date—1991 sp.s. c 5: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state
government and its existing public institutions, and shall take effect July 1,
1991." [1991 sp.s. c 5 § 3.]
Severability—1982 c 181: See note following RCW 48.03.010.
48.05.350
48.05.350 General casualty insurer combining disability, fidelity, insurance. An insurer authorized to transact
general casualty insurance shall be authorized to transact disability insurance and fidelity insurance without requiring
additional financial qualifications. [1963 c 195 § 8.]
48.05.360
48.05.360 Special surplus requirements for certain
combinations. An insurer shall not be authorized to transact
any one of the following insurances,—vehicle, or general
casualty, or marine and transportation, or surety,—with any
additional kind of insurance unless it maintains at all times
special surplus of not less than one hundred thousand dollars
in addition to the paid-in capital stock if a stock insurer or
(2004 Ed.)
48.05.390
basic surplus if a mutual or reciprocal insurer otherwise
required. This section does not apply to combinations transacted by a general casualty insurer pursuant to RCW
48.05.350. [1963 c 195 § 9.]
48.05.370
48.05.370 Fiduciary relationship to insurer of officers, directors or corporation holding controlling interest.
Officers and directors of an insurer or a corporation holding a
controlling interest in an insurer shall be deemed to stand in a
fiduciary relation to the insurer, and shall discharge the duties
of their respective positions in good faith, and with that diligence, care and skill which ordinary prudent men would
exercise under similar circumstances in like positions. [1969
ex.s. c 241 § 1.]
48.05.380
48.05.380 Reports by property and casualty insurers—Rules. The insurance commissioner shall adopt rules
requiring insurers who are authorized to write property and
casualty insurance in the state of Washington to record and
report their Washington state loss and expense experiences
and other data, as required by RCW 48.05.390. These rules
may not require a report to be submitted by any insurer that
has no data or experience to report. [2002 c 22 § 1; 1986 c
148 § 1; 1985 c 238 § 1.]
Effective date—1985 c 238: "The requirements of RCW 48.05.380 and
48.05.390 shall commence with the year-end report for the reporting period
ending December 31, 1986. In addition, the data required under RCW
48.05.390 shall be provided for the years 1975 through 1985 and shall be
filed with the commissioner on or before March 1, 1986." [1985 c 238 § 3.]
Severability—1985 c 238: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1985 c 238 § 4.]
48.05.390
48.05.390 Reports by various insurers—Contents.
(1) The report required by RCW 48.05.380 shall include the
types of insurance written by the insurer for policies pertaining to:
(a) Medical malpractice for physicians and surgeons,
hospitals, other health care professions, and other health care
facilities individually;
(b) Products liability. However, if comparable information is included in the annual statement required by RCW
48.05.250, products liability data must not be reported under
RCW 48.05.380;
(c) Attorneys' malpractice;
(d) Architects' and engineers' malpractice;
(e) Municipal liability; and
(f) Day care center liability.
(2) The report shall include the following data by the
type of insurance for the previous year ending on the thirtyfirst day of December:
(a) Direct premiums written;
(b) Direct premiums earned;
(c) Net investment income, including net realized capital
gain and losses, using appropriate estimates where necessary;
(d) Incurred claims, development as the sum of the following:
(i) Dollar amount of claims closed with payments; plus
(ii) Reserves for reported claims at the end of the current
year; minus
[Title 48 RCW—page 19]
48.05.400
Title 48 RCW: Insurance
(iii) Reserves for reported claims at the end of the previous year; plus
(iv) Reserves for incurred but not reported claims at the
end of the current year; minus
(v) Reserves for incurred but not reported claims at the
end of the previous year; plus
(vi) Reserves for loss adjustment expense at the end of
the current year; minus
(vii) Reserves for loss adjustment expense at the end of
the previous year.
(e) Actual incurred expenses allocated separately to loss
adjustment, commissions, other acquisition costs, advertising, general office expenses, taxes, licenses and fees, and all
other expenses;
(f) Net underwriting gain or loss;
(g) Net operation gain or loss, including net investment
income; and
(h) Other information requested by the insurance commissioner.
(3) The report shall be filed annually with the commissioner, no later than the first day of May. [1994 c 131 § 7;
1988 c 248 § 6; 1986 c 148 § 2; 1985 c 238 § 2.]
Effective date—Severability—1985 c 238: See notes following RCW
48.05.380.
48.05.400
48.05.400 Annual filing and fee to National Association of Insurance Commissioners—Penalty. (1) Each
domestic, foreign, and alien insurer that is authorized to
transact insurance in this state shall annually, on or before
March 1 of each year, file with the National Association of
Insurance Commissioners a copy of its annual statement convention blank, along with such additional filings as prescribed by the commissioner for the preceding year. The
information filed with the National Association of Insurance
Commissioners shall be in the same format and scope as that
required by the commissioner and shall include the signed
jurate page and the actuarial certification. Any amendments
and addendums to the annual statement filing subsequently
filed with the commissioner shall also be filed with the
National Association of Insurance Commissioners.
(2) Coincident with the filing of its annual statement
convention blank and other filings, each such insurer shall
pay a reasonable fee directly to the National Association of
Insurance Commissioners in an amount approved by the
commissioner to cover the costs associated with the analysis
of the annual statement convention blank.
(3) Foreign insurers that are domiciled in a state which
has a law substantially similar to subsection (1) of this section
shall be considered to be in compliance with this section.
(4) In the absence of actual malice, members of the
National Association of Insurance Commissioners, their duly
authorized committees, subcommittees, and task forces, their
delegates, National Association of Insurance Commissioners
employees, and all other persons charged with the responsibility of collecting, reviewing, analyzing, and dissimilating
the information developed from the filing of the annual statement convention blanks shall be acting as agents of the commissioner under the authority of this section and shall not be
subject to civil liability for libel, slander, or any other cause
of action by virtue of their collection, review, and analysis or
[Title 48 RCW—page 20]
dissimilation of the data and information collected for the filings required under this section.
(5) The commissioner may suspend, revoke, or refuse to
renew the certificate of authority of any insurer failing to file
its annual statement or pay the fees when due or within any
extension of time which the commissioner, for good cause,
may have granted. [1987 c 132 § 1.]
48.05.410
48.05.410 Health care practitioner risk management
training. Effective July 1, 1994, each health care provider,
facility, or health maintenance organization that self-insures
for liability risks related to medical malpractice and employs
physicians or other independent health care practitioners in
Washington state shall condition each physician's and practitioner's liability coverage by that entity upon that physician's
or practitioner's participation in risk management training
offered by the provider, facility, or health maintenance organization to its employees. The risk management training shall
provide information related to avoiding adverse health outcomes resulting from substandard practice and minimizing
damages associated with those adverse health outcomes that
do occur. For purposes of this section, "independent health
care practitioner" means those health care practitioner licensing classifications designated by the department of health in
rule pursuant to *RCW 18.130.330. [1993 c 492 § 414.]
*Reviser's note: RCW 18.130.330 was repealed by 1995 c 265 § 27,
effective July 1, 1995.
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
Short title—Severability—Savings—Captions not law—Reservation of legislative power—Effective dates—1993 c 492: See RCW
43.72.910 through 43.72.915.
48.05.430
48.05.430 Definitions. As used in RCW 48.05.430
through 48.05.490, these terms have the following meanings:
(1) "RBC" means risk-based capital.
(2) "NAIC" means the national association of insurance
commissioners.
(3) "Domestic insurer" means any insurance company
domiciled in this state.
(4) "Foreign or alien insurer" means any insurance company that is licensed to do business in this state under this
chapter but is not domiciled in this state.
(5) "Life and disability insurer" means any insurance
company authorized to write only life insurance, disability
insurance, or both, as defined in chapter 48.11 RCW.
(6) "Property and casualty insurer" means any insurance
company authorized to write only property insurance, marine
and transportation insurance, general casualty insurance,
vehicle insurance, or any combination thereof, including disability insurance, as defined in chapter 48.11 RCW.
(7) "Corrective order" means an order issued by the commissioner specifying corrective actions that the commissioner has determined are required.
(8) "Negative trend" means, with respect to a life insurer,
a disability insurer, or a life and disability insurer, the negative trend over a period of time, as determined in accordance
with the trend test calculation included in the RBC instructions.
(9) "Adjusted RBC report" means an RBC report that has
been adjusted by the commissioner in accordance with RCW
48.05.435(5).
(2004 Ed.)
Insurers—General Requirements
(10) "RBC instructions" means the RBC report including
risk-based capital instructions adopted by the NAIC.
(11) "RBC level" means an insurer's company action
level RBC, regulatory action level RBC, authorized control
level RBC, or mandatory control level RBC where:
(a) "Company action level RBC" means, with respect to
any insurer, the product of 2.0 and its authorized control level
RBC;
(b) "Regulatory action level RBC" means the product
[of] 1.5 and its authorized control level RBC;
(c) "Authorized control level RBC" means the number
determined under the risk-based capital formula in accordance with the RBC instructions; and
(d) "Mandatory control level RBC" means the product of
.70 and the authorized control level RBC.
(12) "RBC plan" means a comprehensive financial plan
containing the elements specified in RCW 48.05.440(2). If
the commissioner rejects the RBC plan, and it is revised by
the insurer, with or without the commissioner's recommendation, the plan shall be called the "revised RBC plan."
(13) "RBC report" means the report required in RCW
48.05.435.
(14) "Total adjusted capital" means the sum of:
(a) An insurer's statutory capital and surplus as determined in accordance with statutory accounting applicable to
the annual financial statements required to be filed under
RCW 48.05.250; and
(b) Other items, if any, as the RBC instructions may provide. [1995 c 83 § 1.]
48.05.435 Report of RBC levels—Formula for determining levels—Inaccurate reports adjusted by commissioner. (1) Every domestic insurer shall, on or prior to the filing date, which is hereby established as March 1, prepare and
submit to the commissioner a report of its RBC levels as of
the end of the calendar year just ended, in a form and containing that information required by the RBC instructions. In
addition, every domestic insurer shall file its RBC report:
(a) With the NAIC in accordance with the RBC instructions; and
(b) With the insurance commissioner in any state in
which the insurer is authorized to do business, if the insurance commissioner has notified the insurer of its request in
writing, in which case the insurer shall file its RBC report not
later than the later of:
(i) Fifteen days from the receipt of notice to file its RBC
report with that state; or
(ii) The filing date.
(2) A life and disability insurer's RBC shall be determined in accordance with the formula set forth in the RBC
instructions. The formula shall take into account and may
adjust for the covariance between:
(a) The risk with respect to the insurer's assets;
(b) The risk of adverse insurance experience with respect
to the insurer's liabilities and obligations;
(c) The interest rate risk with respect to the insurer's
business; and
(d) All other business risks and other relevant risks as are
set forth in the RBC instructions; determined in each case by
applying the factors in the manner set forth in the RBC
instructions.
48.05.435
(2004 Ed.)
48.05.440
(3) A property and casualty insurer's RBC shall be determined in accordance with the formula set forth in the RBC
instructions. The formula shall take into account and may
adjust for the covariance between:
(a) Asset risk;
(b) Credit risk;
(c) Underwriting risk; and
(d) All other business risks and other relevant risks as are
set forth in the RBC instructions; determined in each case by
applying the factors in the manner set forth in the RBC
instructions.
(4) An excess of capital over the amount produced by the
RBC requirements and the formulas, schedules, and instructions under RCW 48.05.430 through 48.05.490 is desirable in
the business of insurance. Accordingly, insurers should seek
to maintain capital above the RBC levels required. Additional
capital is used and useful in the insurance business and helps
to secure an insurer against various risks inherent in, or
affecting, the business of insurance and not accounted for or
only partially measured by the RBC requirements.
(5) If a domestic insurer files an RBC report that in the
judgment of the commissioner is inaccurate, then the commissioner shall adjust the RBC report to correct the inaccuracy and shall notify the insurer of the adjustment. The notice
shall contain a statement of the reason for the adjustment.
[1995 c 83 § 2.]
48.05.440 Company action level event—Definition—
RBC plan—Commissioner's review. (1) "Company action
level event" means any of the following events:
(a) The filing of an RBC report by an insurer indicating
that:
(i) The insurer's total adjusted capital is greater than or
equal to its regulatory action level RBC, but less than its company action level RBC; or
(ii) If a life and disability insurer, the insurer has total
adjusted capital that is greater than or equal to its company
action level RBC, but less than the product of its authorized
control level RBC and 2.5 and has a negative trend;
(b) The notification by the commissioner to the insurer
of an adjusted RBC report that indicates an event in (a) of this
subsection, provided the insurer does not challenge the
adjusted RBC report under RCW 48.05.460; or
(c) If, under RCW 48.05.460, an insurer challenges an
adjusted RBC report that indicates an event in (a) of this subsection, the notification by the commissioner to the insurer
that the commissioner has, after a hearing, rejected the
insurer's challenge.
(2) In the event of a company action level event, the
insurer shall prepare and submit to the commissioner an RBC
plan that:
(a) Identifies the conditions that contribute to the company action level event;
(b) Contains proposals of corrective actions that the
insurer intends to take and would be expected to result in the
elimination of the company action level event;
(c) Provides projections of the insurer's financial results
in the current year and at least the four succeeding years, both
in the absence of proposed corrective actions and giving
effect to the proposed corrective actions, including projections of statutory operating income, net income, capital, and
48.05.440
[Title 48 RCW—page 21]
48.05.445
Title 48 RCW: Insurance
surplus. The projections for both new and renewal business
might include separate projections for each major line of
business and separately identify each significant income,
expense, and benefit component;
(d) Identifies the key assumptions impacting the insurer's
projections and the sensitivity of the projections to the
assumptions; and
(e) Identifies the quality of, and problems associated
with, the insurer's business, including but not limited to its
assets, anticipated business growth and associated surplus
strain, extraordinary exposure to risk, mix of business, and
use of reinsurance, if any, in each case.
(3) The RBC plan shall be submitted:
(a) Within forty-five days of the company action level
event; or
(b) If the insurer challenges an adjusted RBC report
under RCW 48.05.460, within forty-five days after notification to the insurer that the commissioner has, after a hearing,
rejected the insurer's challenge.
(4) Within sixty days after the submission by an insurer
of an RBC plan to the commissioner, the commissioner shall
notify the insurer whether the RBC plan may be implemented
or is, in the judgment of the commissioner, unsatisfactory. If
the commissioner determines the RBC plan is unsatisfactory,
the notification to the insurer shall set forth the reasons for
the determination, and may set forth proposed revisions that
will render the RBC plan satisfactory. Upon notification from
the commissioner, the insurer shall prepare a revised RBC
plan, that may incorporate by reference any revisions proposed by the commissioner, and shall submit the revised
RBC plan to the commissioner:
(a) Within forty-five days after the notification from the
commissioner; or
(b) If the insurer challenges the notification from the
commissioner under RCW 48.05.460, within forty-five days
after a notification to the insurer that the commissioner has,
after a hearing, rejected the insurer's challenge.
(5) In the event of a notification by the commissioner to
an insurer that the insurer's RBC plan or revised RBC plan is
unsatisfactory, the commissioner may, subject to the insurer's
rights to a hearing under RCW 48.05.460, specify in the notification that the notification constitutes a regulatory action
level event.
(6) Every domestic insurer that files an RBC plan or
revised RBC plan with the commissioner shall file a copy of
the RBC plan or revised RBC plan with the insurance commissioner in any state in which the insurer is authorized to do
business if:
(a) The state has an RBC provision substantially similar
to RCW 48.05.465(1); and
(b) The insurance commissioner of that state has notified
the insurer of its request for the filing in writing, in which
case the insurer shall file a copy of the RBC plan or revised
RBC plan in that state no later than the later of:
(i) Fifteen days after the receipt of notice to file a copy of
its RBC plan or revised plan with the state; or
(ii) The date on which the RBC plan or revised RBC plan
is filed under subsections (3) and (4) of this section. [1995 c
83 § 3.]
[Title 48 RCW—page 22]
48.05.445
48.05.445 Regulatory action level event—Definition—Commissioner's duties—Corrective actions. (1)
"Regulatory action level event" means, with respect to any
insurer, any of the following events:
(a) The filing of an RBC report by the insurer indicating
that the insurer's total adjusted capital is greater than or equal
to its authorized control level RBC but less than its regulatory
action level RBC;
(b) The notification by the commissioner to an insurer of
an adjusted RBC report that indicates the event in (a) of this
subsection, provided the insurer does not challenge the
adjusted RBC report under RCW 48.05.460;
(c) If, under RCW 48.05.460, the insurer challenges an
adjusted RBC report that indicates the event in (a) of this subsection, the notification by the commissioner to the insurer
that the commissioner has, after a hearing, rejected the
insurer's challenge;
(d) The failure of the insurer to file an RBC report by the
filing date, unless the insurer has provided an explanation for
such failure that is satisfactory to the commissioner and has
cured the failure within ten days after the filing date;
(e) The failure of the insurer to submit an RBC plan to
the commissioner within the time period set forth in RCW
48.05.440(3);
(f) Notification by the commissioner to the insurer that:
(i) The RBC plan or revised RBC plan submitted by the
insurer is, in the judgment of the commissioner, unsatisfactory; and
(ii) The notification constitutes a regulatory action level
event with respect to the insurer, provided the insurer has not
challenged the determination under RCW 48.05.460;
(g) If, under RCW 48.05.460, the insurer challenges a
determination by the commissioner under (f) of this subsection, the notification by the commissioner to the insurer that
the commissioner has, after a hearing, rejected the challenge;
(h) Notification by the commissioner to the insurer that
the insurer has failed to adhere to its RBC plan or revised
RBC plan, but only if the failure has a substantial adverse
effect on the ability of the insurer to eliminate the company
action level event in accordance with its RBC plan or revised
RBC plan and the commissioner has so stated in the notification, provided the insurer has not challenged the determination under RCW 48.05.460; or
(i) If, under RCW 48.05.460, the insurer challenges a
determination by the commissioner under (h) of this subsection, the notification by the commissioner to the insurer that
the commissioner has, after a hearing, rejected the challenge.
(2) In the event of a regulatory action level event the
commissioner shall:
(a) Require the insurer to prepare and submit an RBC
plan or, if applicable, a revised RBC plan;
(b) Perform the examination or analysis the commissioner deems necessary of the assets, liabilities, and operations of the insurer including a review of its RBC plan or
revised RBC plan; and
(c) Subsequent to the examination or analysis, issue an
order specifying those corrective actions the commissioner
determines are required.
(3) In determining corrective actions, the commissioner
may take into account those factors deemed relevant with
respect to the insurer based upon the commissioner's exami(2004 Ed.)
Insurers—General Requirements
nation or analysis of the assets, liabilities, and operations of
the insurer, including, but not limited to, the results of any
sensitivity tests undertaken under the RBC instructions. The
RBC plan or revised RBC plan shall be submitted:
(a) Within forty-five days after the occurrence of the regulatory action level event;
(b) If the insurer challenges an adjusted RBC report
under RCW 48.05.460, and the challenge is not frivolous in
the judgment of the commissioner, within forty-five days
after the notification to the insurer that the commissioner has,
after a hearing, rejected the insurer's challenge; or
(c) If the insurer challenges a revised RBC plan under
RCW 48.05.460, and the challenge is not frivolous in the
judgment of the commissioner, within forty-five days after
the notification to the insurer that the commissioner has, after
a hearing, rejected the insurer's challenge.
(4) The commissioner may retain actuaries and investment experts and other consultants as may be necessary in the
judgment of the commissioner to review the insurer's RBC
plan or revised RBC plan, examine or analyze the assets, liabilities, and operations of the insurer and formulate the corrective order with respect to the insurer. The fees, costs, and
expenses relating to consultants shall be borne by the affected
insurer or other party as directed by the commissioner. [1995
c 83 § 4.]
48.05.450 Authorized control level event—Definition—Commissioner's duties. (1) "Authorized control
level event" means any of the following events:
(a) The filing of an RBC report by the insurer indicating
that the insurer's total adjusted capital is greater than or equal
to its mandatory control level RBC but less than its authorized control level RBC;
(b) The notification by the commissioner to the insurer
of an adjusted RBC report that indicates the event in (a) of
this subsection, provided the insurer does not challenge the
adjusted RBC report under RCW 48.05.460;
(c) If, under RCW 48.05.460, the insurer challenges an
adjusted RBC report that indicates the event in (a) of this subsection, notification by the commissioner to the insurer that
the commissioner has, after a hearing, rejected the insurer's
challenge;
(d) The failure of the insurer to respond, in a manner satisfactory to the commissioner, to a corrective order, provided
the insurer has not challenged the corrective order under
RCW 48.05.460; or
(e) If the insurer has challenged a corrective order under
RCW 48.05.460 and the commissioner has, after a hearing,
rejected the challenge or modified the corrective order, the
failure of the insurer to respond, in a manner satisfactory to
the commissioner, to the corrective order subsequent to rejection or modification by the commissioner.
(2) In the event of an authorized control level event with
respect to an insurer, the commissioner shall:
(a) Take those actions required under RCW 48.05.445
regarding an insurer with respect to which a regulatory action
level event has occurred; or
(b) If the commissioner deems it to be in the best interests of the policyholders and creditors of the insurer and of
the public, take those actions necessary to cause the insurer to
be placed under regulatory control under chapter 48.31
48.05.450
(2004 Ed.)
48.05.455
RCW. In the event the commissioner takes these actions, the
authorized control level event is sufficient grounds for the
commissioner to take action under chapter 48.31 RCW, and
the commissioner has the rights, powers, and duties with
respect to the insurer as are set forth in chapter 48.31 RCW.
In the event the commissioner takes actions under this subsection pursuant to an adjusted RBC report, the insurer is
entitled to those protections afforded to insurers under RCW
48.31.121 pertaining to summary proceedings. [1995 c 83 §
5.]
48.05.455
48.05.455 Mandatory control level event—Definition—Commissioner's duties. (1) "Mandatory control level
event" means any of the following events:
(a) The filing of an RBC report indicating that the
insurer's total adjusted capital is less than its mandatory control level RBC;
(b) Notification by the commissioner to the insurer of an
adjusted RBC report that indicates the event in (a) of this subsection, provided the insurer does not challenge the adjusted
RBC report under RCW 48.05.460; or
(c) If, under RCW 48.05.460, the insurer challenges an
adjusted RBC report that indicates the event in (a) of this subsection, notification by the commissioner to the insurer that
the commissioner has, after a hearing, rejected the insurer's
challenge.
(2) In the event of a mandatory control level event:
(a) With respect to a life and disability insurer, the commissioner shall take those actions necessary to place the
insurer under regulatory control under chapter 48.31 RCW.
In that event, the mandatory control level event is sufficient
grounds for the commissioner to take action under chapter
48.31 RCW, and the commissioner has the rights, powers,
and duties with respect to the insurer as are set forth in chapter 48.31 RCW. If the commissioner takes actions pursuant to
an adjusted RBC report, the insurer is entitled to the protections of RCW 48.31.121 pertaining to summary proceedings.
However, the commissioner may forego action for up to
ninety days after the mandatory control level event if the
commissioner finds there is a reasonable expectation that the
mandatory control level event may be eliminated within the
ninety-day period.
(b) With respect to a property and casualty insurer, the
commissioner shall take those actions necessary to place the
insurer under regulatory control under chapter 48.31 RCW,
or, in the case of an insurer that is writing no business and that
is running-off its existing business, may allow the insurer to
continue its run-off under the supervision of the commissioner. In either event, the mandatory control level event is
sufficient grounds for the commissioner to take action under
chapter 48.31 RCW and the commissioner has the rights,
powers, and duties with respect to the insurer as are set forth
in chapter 48.31 RCW. If the commissioner takes actions
pursuant to an adjusted RBC report, the insurer is entitled to
the protections of RCW 48.31.121 pertaining to summary
proceedings. However, the commissioner may forego action
for up to ninety days after the mandatory control level event
if the commissioner finds there is a reasonable expectation
that the mandatory control level event may be eliminated
within the ninety-day period. [1995 c 83 § 6.]
[Title 48 RCW—page 23]
48.05.460
Title 48 RCW: Insurance
48.05.460
48.05.460 Insurer's right to a hearing—Request—
Commissioner sets date. (1) Upon notification to an insurer
by the commissioner of any of the following, the insurer shall
have the right to a hearing, in accordance with chapters 48.04
and 34.05 RCW, at which the insurer may challenge any
determination or action by the commissioner:
(a) Of an adjusted RBC report; or
(b)(i) That the insurer's RBC plan or revised RBC plan is
unsatisfactory; and
(ii) The notification constitutes a regulatory action level
event with respect to such insurer; or
(c) That the insurer has failed to adhere to its RBC plan
or revised RBC plan and that such failure has a substantial
adverse effect on the ability of the insurer to eliminate the
company action level event with respect to the insurer in
accordance with its RBC plan or revised RBC plan; or
(d) Of a corrective order with respect to the insurer.
(2) The insurer shall notify the commissioner of its
request for a hearing within five days after the notification by
the commissioner under this section. Upon receipt of the
insurer's request for a hearing, the commissioner shall set a
date for the hearing. The date shall be no less than ten nor
more than thirty days after the date of the insurer's request.
[1995 c 83 § 7.]
48.05.465
48.05.465 Confidentiality of RBC reports and
plans—Use of information for comparative purposes—
Use of information to monitor solvency. (1) All RBC
reports, to the extent the information is not required to be set
forth in a publicly available annual statement schedule, and
RBC plans, including the results or report of any examination
or analysis of an insurer and any corrective order issued by
the commissioner, with respect to any domestic insurer or
foreign insurer that are filed with the commissioner constitute
information that might be damaging to the insurer if made
available to its competitors, and therefore shall be kept confidential by the commissioner. This information shall not be
made public or be subject to subpoena, other than by the commissioner and then only for the purpose of enforcement
actions taken by the commissioner.
(2) The comparison of an insurer's total adjusted capital
to any of its RBC levels is a regulatory tool that may indicate
the need for possible corrective action with respect to the
insurer, and is not a means to rank insurers generally. Therefore, except as otherwise required under the provisions of
RCW 48.05.430 through 48.05.490, the making, publishing,
disseminating, circulating, or placing before the public, or
causing, directly or indirectly to be made, published, disseminated, circulated, or placed before the public, in a newspaper, magazine, or other publication, or in the form of a notice,
circular, pamphlet, letter, or poster, or over any radio or television station, or in any other way, an advertisement,
announcement, or statement containing an assertion, representation, or statement with regard to the RBC levels of any
insurer, or of any component derived in the calculation, by
any insurer, agent, broker, or other person engaged in any
manner in the insurance business would be misleading and is
therefore prohibited. However, if any materially false statement with respect to the comparison regarding an insurer's
total adjusted capital to its RBC levels, or any of them, or an
inappropriate comparison of any other amount to the insurer's
[Title 48 RCW—page 24]
RBC levels is published in any written publication and the
insurer is able to demonstrate to the commissioner with substantial proof the falsity of such statement, or the inappropriateness, as the case may be, then the insurer may publish an
announcement in a written publication if the sole purpose of
the announcement is to rebut the materially false statement.
(3) The RBC instructions, RBC reports, adjusted RBC
reports, RBC plans, and revised RBC plans are solely for use
by the commissioner in monitoring the solvency of insurers
and the need for possible corrective action with respect to
insurers and shall not be used by the commissioner for ratemaking nor considered or introduced as evidence in any rate
proceeding nor used by the commissioner to calculate or
derive any elements of an appropriate premium level or rate
of return for any line of insurance that an insurer or any affiliate is authorized to write. [1995 c 83 § 8.]
48.05.470
48.05.470 Regulation of capital and surplus requirements is supplemental—Commissioner may grant
exemptions. (1) The provisions of RCW 48.05.430 through
48.05.490 are supplemental to any other provisions of the
laws of this state, and shall not preclude or limit any other
powers or duties of the commissioner under those laws,
including, but not limited to, chapter 48.31 RCW.
(2) The commissioner may exempt any domestic property and casualty insurer from RCW 48.05.430 through
48.05.490, if the insurer:
(a) Writes direct business only in this state;
(b) Writes direct annual premiums of two million dollars
or less; and
(c) Assumes no reinsurance in excess of five percent of
direct premiums written. [1995 c 83 § 9.]
48.05.475
48.05.475 RBC report from foreign or alien insurers—Request of commissioner—Commissioner's options.
(1) Any foreign or alien insurer shall, upon the written
request of the commissioner, submit to the commissioner an
RBC report as of the end of the calendar year just ended by
the later of:
(a) The date an RBC report would be required to be filed
by a domestic insurer under RCW 48.05.435; or
(b) Fifteen days after the request is received by the foreign or alien insurer. Any foreign or alien insurer shall, at the
written request of the commissioner, promptly submit to the
commissioner a copy of any RBC plan that is filed with the
insurance commissioner of any other state.
(2) In the event of a company action level event, regulatory action level event, or authorized control level event with
respect to any foreign or alien insurer as determined under the
RBC statute applicable in the state of domicile of the insurer
or, if no RBC statute is in force in that state, under the provisions of RCW 48.05.430 through 48.05.490, if the insurance
commissioner of the state of domicile of the foreign or alien
insurer fails to require the foreign or alien insurer to file an
RBC plan in the manner specified under that state's RBC statute, the commissioner may require the foreign or alien insurer
to file an RBC plan. In this event, the failure of the foreign or
alien insurer to file an RBC plan is grounds to order the
insurer to cease and desist from writing new insurance business in this state.
(2004 Ed.)
Insurers—General Requirements
(3) In the event of a mandatory control level event with
respect to any foreign or alien insurer, if no domiciliary
receiver has been appointed with respect to the foreign or
alien insurer under the rehabilitation and liquidation statute
applicable in the state of domicile of the foreign or alien
insurer, the commissioner may apply for an order under
RCW 48.31.080 or 48.31.090 to conserve the assets within
this state of foreign or alien insurers, and the occurrence of
the mandatory control level event is considered adequate
grounds for the application. [1995 c 83 § 10.]
48.05.480
48.05.480 No liability for regulation of capital and
surplus requirements. There is no liability on the part of,
and no cause of action may arise against, the commissioner or
insurance department or its employees or agents for any
action taken by them in the performance of their powers and
duties under RCW 48.05.430 through 48.05.490. [1995 c 83
§ 11.]
48.05.525
(3) One complete copy of the report, including any
exhibits or other attachments filed as part of the report, shall
be filed with the:
(a) Commissioner; and
(b) National association of insurance commissioners.
(4) All reports obtained by or disclosed to the commissioner under this section and RCW 48.05.515 through
48.05.535 are exempt from public inspection and copying
and are not subject to subpoena. These reports shall not be
made public by the commissioner, the national association of
insurance commissioners, or any other person, except to
insurance departments of other states, without the prior written consent of the insurer to which it pertains unless the commissioner, after giving the insurer that would be affected by
disclosure notice and a hearing under chapter 48.04 RCW,
determines that the interest of policyholders, shareholders, or
the public will be served by the publication, in which event
the commissioner may publish all or any part of the report in
the manner he or she deems appropriate. [1995 c 86 § 1.]
48.05.485
48.05.485 Notices by commissioner—When effective.
All notices by the commissioner to an insurer that may result
in regulatory action are effective upon dispatch if transmitted
by registered or certified mail, or in the case of any other
transmission are effective upon the insurer's receipt of the
notice. [1995 c 83 § 12.]
48.05.490
48.05.490 RBC reports for 1995—Requirements. For
RBC reports required by property and casualty insurers for
1995, the following requirements apply in lieu of RCW
48.05.440 through 48.05.455:
(1) In the event of a company action level event with
respect to a domestic insurer, the commissioner shall take no
regulatory action.
(2) In the event of a regulatory action level event under
RCW 48.05.445(1) (a), (b), or (c) the commissioner shall
take the actions required under RCW 48.05.440.
(3) In the event of a regulatory action level event under
RCW 48.05.445(1) (d), (e), (f), (g), (h), or (i) or an authorized
control level event, the commissioner shall take the actions
required under RCW 48.05.445.
(4) In the event of a mandatory control level event with
respect to an insurer, the commissioner shall take the actions
required under RCW 48.05.450. [1995 c 83 § 13.]
48.05.510
48.05.510 Disclosure of certain material transactions—Insurer's report—Information is confidential. (1)
Every insurer domiciled in this state shall file a report with
the commissioner disclosing material acquisitions and dispositions of assets or material nonrenewals, cancellations, or
revisions of ceded reinsurance agreements unless these
acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements have been submitted to the commissioner for review,
approval, or information purposes under other provisions of
this title or other requirements.
(2) The report required in subsection (1) of this section is
due within fifteen days after the end of the calendar month in
which any of the transactions occur.
(2004 Ed.)
48.05.515
48.05.515 Material acquisitions or dispositions. No
acquisitions or dispositions of assets need be reported under
RCW 48.05.510 if the acquisitions or dispositions are not
material. For purposes of RCW 48.05.510 through 48.05.535,
a material acquisition, or the aggregate of any series of
related acquisitions during any thirty-day period; or disposition, or the aggregate of any series of related dispositions during any thirty-day period is an acquisition or disposition that
is nonrecurring and not in the ordinary course of business and
involves more than five percent of the reporting insurer's total
assets as reported in its most recent statutory statement filed
with the commissioner. [1995 c 86 § 2.]
48.05.520
48.05.520 Asset acquisitions—Asset dispositions. (1)
Asset acquisitions subject to RCW 48.05.510 through
48.05.535 include every purchase, lease, exchange, merger,
consolidation, succession, or other acquisition other than the
construction or development of real property by or for the
reporting insurer or the acquisition of materials for such a
purpose.
(2) Asset dispositions subject to RCW 48.05.510
through 48.05.535 include every sale, lease, exchange,
merger, consolidation, mortgage, hypothecation, abandonment, destruction, other disposition, or assignment, whether
the assignment is for the benefit of creditors or otherwise.
[1995 c 86 § 3.]
48.05.525
48.05.525 Report of a material acquisition or disposition of assets—Information required. (1) The following
information is required to be disclosed in any report of a
material acquisition or disposition of assets:
(a) Date of the transaction;
(b) Manner of acquisition or disposition;
(c) Description of the assets involved;
(d) Nature and amount of the consideration given or
received;
(e) Purpose of or reason for the transaction;
(f) Manner by which the amount of consideration was
determined;
[Title 48 RCW—page 25]
48.05.530
Title 48 RCW: Insurance
(g) Gain or loss recognized or realized as a result of the
transaction; and
(h) Names of the persons from whom the assets were
acquired or to whom they were disposed.
(2) Insurers are required to report material acquisitions
and dispositions on a nonconsolidated basis unless the insurer
is part of a consolidated group of insurers that utilizes a pooling arrangement or one hundred percent reinsurance agreement that affects the solvency and integrity of the insurer's
reserves and such an insurer ceded substantially all of its
direct and assumed business to the pool. An insurer has ceded
substantially all of its direct and assumed business to a pool if
the insurer has less than one million dollars total direct plus
assumed written premiums during a calendar year that are not
subject to a pooling arrangement and the net income of the
business not subject to the pooling arrangement represents
less than five percent of the insurer's capital and surplus.
[1995 c 86 § 4.]
48.05.530
48.05.530 Material nonrenewals, cancellations, or
revisions of ceded reinsurance agreements. (1) No nonrenewals, cancellations, or revisions of ceded reinsurance
agreements need be reported under RCW 48.05.510 if the
nonrenewals, cancellations, or revisions are not material. For
purposes of RCW 48.05.510 through 48.05.535, a material
nonrenewal, cancellation, or revision is one that affects:
(a) More than fifty percent of a property and casualty
insurer's total ceded written premium;
(b) More than fifty percent of the property and casualty
insurer's total ceded indemnity and loss adjustment reserves;
(c) More than fifty percent of a nonproperty and casualty
insurer's total reserve credit taken for business ceded, on an
annualized basis, as indicated in the insurer's most recent
annual statement;
(d) More than ten percent of an insurer's total cession
when it is replaced by one or more unauthorized reinsurers;
or
(e) Previously established collateral requirements, when
they have been reduced or waived as respects one or more
unauthorized reinsurers representing collectively more than
ten percent of a total cession.
(2) However, a filing is not required if:
(a) A property and casualty insurer's total ceded written
premium represents, on an annualized basis, less than ten percent of its total written premium for direct and assumed business; or
(b) A nonproperty and casualty insurer's total reserve
credit taken for business ceded represents, on an annualized
basis, less than ten percent of the statutory reserve requirement prior to any cession. [1995 c 86 § 5.]
48.05.535
48.05.535 Report of a material nonrenewal, cancellation, or revision of ceded reinsurance agreements—Information required. (1) The following is required to be disclosed in any report of a material nonrenewal, cancellation, or
revision of ceded reinsurance agreements:
(a) The effective date of the nonrenewal, cancellation, or
revision;
(b) The description of the transaction with an identification of the initiator;
[Title 48 RCW—page 26]
(c) The purpose of or reason for the transaction; and
(d) If applicable, the identity of the replacement reinsurers.
(2) Insurers are required to report all material nonrenewals, cancellations, or revisions of ceded reinsurance agreements on a nonconsolidated basis unless the insurer is part of
a consolidated group of insurers that utilizes a pooling
arrangement or one hundred percent reinsurance agreement
that affects the solvency and integrity of the insurer's reserves
and the insurer ceded substantially all of its direct and
assumed business to the pool. An insurer has ceded substantially all of its direct and assumed business to a pool if the
insurer has less than one million dollars total direct plus
assumed written premiums during a calendar year that are not
subject to a pooling arrangement and the net income of the
business not subject to the pooling arrangement represents
less than five percent of the insurer's capital and surplus.
[1995 c 86 § 6.]
48.05.900 Severability—1995 c 83. If any provision of
this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1995 c 83 § 15.]
48.05.900
Chapter 48.06 RCW
ORGANIZATION OF DOMESTIC INSURERS
Chapter 48.06
Sections
48.06.010
48.06.020
48.06.030
48.06.040
48.06.050
48.06.060
48.06.070
48.06.080
48.06.090
48.06.100
48.06.110
48.06.120
48.06.130
48.06.150
48.06.160
48.06.170
48.06.180
48.06.190
48.06.200
Types of domestic insurers permitted.
Assessment mutuals prohibited—Exceptions.
Solicitation permit.
Application for solicitation permit.
Procedure upon application.
Issuance of permit—Bond.
Duration of permit—Contents.
Permit as inducement.
Solicitors' licenses.
Modification, revocation of permit.
Bond—Cash deposit.
Escrow of funds.
Liability of organizers—Organization expense.
Payment for subscriptions—Forfeiture.
Insurance applications—Mutual and reciprocal insurers.
Procedure on failure to complete organization or to qualify.
Subsequent financing.
Penalty for exhibiting false accounts, etc.
Incorporation, articles of—Contents.
48.06.010 Types of domestic insurers permitted. An
insurer formed in this state shall be either
(1) An incorporated stock insurer, or
(2) An incorporated mutual insurer, or
(3) An incorporated specific risks mutual property
insurer, or
(4) An incorporated mutual assessment property insurer
only, or
(5) An incorporated farm mutual assessment property
insurer only, or
(6) A reciprocal insurer, with respective powers, duties,
and restrictions as provided in this code. [1947 c 79 § .06.01;
Rem. Supp. 1947 § 45.06.01.]
48.06.010
48.06.020
48.06.020 Assessment mutuals prohibited—Exceptions. No insurer shall be formed or be authorized in this
(2004 Ed.)
Organization of Domestic Insurers
48.06.070
state to issue contracts of insurance the performance of which
is contingent upon the payment of assessments, assessment
premiums, or calls made upon its members. Mutual assessment property insurers and farm mutual assessment property
insurers shall be the only exception to this provision. [1947 c
79 § .06.02; Rem. Supp. 1947 § 45.06.02.]
with the state and national criminal history background
check, for filing of the articles of incorporation of an insurer,
for filing the subscribers' agreement and attorney in fact
agreement if the proposed insurer is a reciprocal, for the
solicitation permit, if granted, and for filing articles of incorporation with the secretary of state. [2002 c 227 § 1; 1967 c
150 § 6; 1947 c 79 § .06.04; Rem. Supp. 1947 § 45.06.04.]
48.06.030 Solicitation permit. (1) No person forming
or proposing to form in this state an insurer, or insurance
holding corporation, or stock corporation to finance an
insurer or insurance production therefor, or corporation to
manage an insurer, or corporation to be attorney in fact for a
reciprocal insurer, or a syndicate for any of such purposes,
shall advertise, or solicit or receive any funds, agreement,
stock subscription, or membership on account thereof unless
he or she has applied for and has received from the commissioner a solicitation permit.
(2) Any person violating this section is guilty of a class
B felony and shall be subject to a fine of not more than ten
thousand dollars or imprisonment for not more than ten years,
or by both fine and imprisonment. [2003 c 53 § 267; 1947 c
79 § .06.03; Rem. Supp. 1947 § 45.06.03.]
Effective date—2002 c 227: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[March 28, 2002]." [2002 c 227 § 6.]
48.06.030
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
48.06.040 Application for solicitation permit. To
apply for a solicitation permit the person shall:
(1) File with the commissioner a request showing:
(a) Name, type, and purpose of insurer, corporation, or
syndicate proposed to be formed;
(b) Names, addresses, fingerprints for submission to the
Washington state patrol, the federal bureau of investigation,
and any governmental agency or entity authorized to receive
this information for a state and national criminal history
background check, and business records of each person associated or to be associated in the formation of the proposed
insurer, corporation, or syndicate;
(c) Full disclosure of the terms of all understandings and
agreements existing or proposed among persons so associated relative to the proposed insurer, corporation, or syndicate, or the formation thereof;
(d) The plan according to which solicitations are to be
made; and
(e) Additional information as the commissioner may reasonably require.
(2) File with the commissioner:
(a) Original and copies in triplicate of proposed articles
of incorporation, or syndicate agreement; or, if the proposed
insurer is a reciprocal, original and duplicate of the proposed
subscribers' agreement and attorney in fact agreement;
(b) Original and duplicate copy of any proposed bylaws;
(c) Copy of any security proposed to be issued and copy
of application or subscription agreement for that security;
(d) Copy of any insurance contract proposed to be
offered and copy of application for that contract;
(e) Copy of any prospectus, advertising, or literature proposed to be used; and
(f) Copy of proposed form of any escrow agreement
required.
(3) Deposit with the commissioner the fees required by
law to be paid for the application including fees associated
48.06.040
(2004 Ed.)
48.06.050
48.06.050 Procedure upon application. The commissioner shall expeditiously examine the application for a solicitation permit and make any investigation relative thereto
deemed necessary. If the commissioner finds that
(1) the application is complete; and
(2) the documents therewith filed are equitable in terms
and proper in form; and
(3) the management of the company, whether by its
directors, officers, or by any other means is competent and
trustworthy and not so lacking in managerial experience as to
make a proposed operation hazardous to the insurance-buying public; and that there is no reason to believe the company
is affiliated, directly or indirectly, through ownership, control, reinsurance, or other insurance or business relations,
with any other person or persons whose business operations
are or have been marked, to the detriment of the policyholders or stockholders or investors or creditors or of the public,
by bad faith or by manipulation of assets, or of accounts, or of
reinsurance; and
(4) the agreements made or proposed are equitable to
present and future shareholders, subscribers, members or policyholders, he shall give notice to the applicant that he will
issue a solicitation permit, stating the terms to be contained
therein, upon the filing of the bond required by RCW
48.06.110 of this code.
If the commissioner does not so find, he shall give notice
to the applicant that the permit will not be granted, stating the
grounds therefor, and shall refund to the applicant all sums so
deposited except the application fee. [1967 c 150 § 7; 1947 c
79 § .06.05; Rem. Supp. 1947 § 45.06.05.]
48.06.060
48.06.060 Issuance of permit—Bond. Upon the filing
of the bond required by RCW 48.06.110 after notice by the
commissioner, the commissioner shall:
(1) File the articles of incorporation of the proposed
incorporated insurer or other corporation; and
(2) Issue to the applicant a solicitation permit. [1998 c
23 § 1; 1947 c 79 § .06.06; Rem. Supp. 1947 § 45.06.06.]
48.06.070
48.06.070 Duration of permit—Contents. Every
solicitation permit issued by the commissioner shall:
(1) Be for a period of not over two years, subject to the
right of the commissioner to grant a reasonable extension for
good cause.
(2) State the securities for which subscriptions are to be
solicited, the number, classes, par value, and selling price
thereof, or identify the insurance contract for which applications and advance premiums or deposits are to be solicited.
[Title 48 RCW—page 27]
48.06.080
Title 48 RCW: Insurance
(3) Limit the portion of funds received on account of
stock or syndicate subscriptions, if any are proposed to be
taken, which may be used for promotion and organization
expenses to such amount as he deems adequate, but in no
event to exceed fifteen percent of such funds as and when
actually received.
(4) If to be a mutual or reciprocal insurer, limit the portion of funds received on account of applications for insurance which may be used for promotion or organization
expenses to a reasonable commission upon such funds, giving consideration to the kind of insurance and policy
involved and to the costs incurred by insurers generally in the
production of similar business, and provide that no such commission shall be deemed to be earned nor be paid until the
insurer has received its certificate of authority and the policies applied for and upon which such commission is to be
based, have been actually issued and delivered.
(5) Contain such other information required by this chapter or reasonable conditions relative to accounting and reports
or otherwise as the commissioner deems necessary. [1953 c
197 § 1; 1947 c 79 § .06.07; Rem. Supp. 1947 § 45.06.07.]
48.06.080
48.06.080 Permit as inducement. The granting of a
solicitation permit is permissive only and shall not constitute
an endorsement by the commissioner of any person or thing
related to the proposed insurer, corporation, or syndicate and
the existence of the permit shall not be advertised or used as
an inducement in any solicitation. The substance of this section in bold faced type not less than ten point shall be printed
at the top of each solicitation permit. [1947 c 79 § .06.08;
Rem. Supp. 1947 § 45.06.08.]
48.06.090
48.06.090 Solicitors' licenses. Solicitation for sale of
securities to members of the public under a solicitation permit shall be made only by individuals licensed therefor pursuant to the provisions of the securities act. [1949 c 190 § 5;
1947 c 79 § .06.09; Rem. Supp. 1949 § 45.06.09.]
48.06.100
48.06.100 Modification, revocation of permit. (1) The
commissioner may, for cause, modify a solicitation permit, or
may, after a hearing, revoke any solicitation permit for violation of any provision of this code, or of the terms of the permit, or of any proper order of the commissioner, or for misrepresentation.
(2) The commissioner shall revoke a solicitation permit
if requested in writing by a majority of the syndicate members, or by a majority of the incorporators and two-thirds of
the subscribers to stock or applicants for insurance in the proposed incorporated insurer or corporation, or if he is so
requested by a majority of the subscribers of a proposed
reciprocal insurer. [1947 c 79 § .06.10; Rem. Supp. 1947 §
45.06.10.]
48.06.110
48.06.110 Bond—Cash deposit. (1) The commissioner
shall not issue a solicitation permit until the person applying
therefor files with him a corporate surety bond in the penalty
of fifty thousand dollars, in favor of the state and for the use
and benefit of the state and of subscribers and creditors of the
proposed organization.
[Title 48 RCW—page 28]
The bond shall be conditioned upon the payment of costs
incurred by the state in event of any legal proceedings for liquidation or dissolution of the proposed organization before
completion of organization or in event a certificate of authority is not granted; and upon a full accounting for funds
received until the proposed insurer has been granted its certificate of authority, or until the proposed corporation or syndicate has completed its organization as defined in the solicitation permit.
(2) In lieu of filing such bond, the person may deposit
with the commissioner fifty thousand dollars in cash or in
United States government bonds at par value, to be held in
trust upon the same conditions as required for the bond.
(3) The commissioner may waive the requirement for a
bond or deposit in lieu thereof if the permit provides that:
(a) The proposed securities are to be distributed solely
and finally to those few persons who are the active promotors
intimate to the formation of the insurer, or other corporation
or syndicate, or
(b) The securities are to be issued in connection with
subsequent financing as provided in RCW 48.06.180.
(4) Any bond filed or deposit or remaining portion
thereof held under this section shall be released and discharged upon settlement or termination of all liabilities
against it. [1969 ex.s. c 241 § 2; 1955 c 86 § 2; 1953 c 197 §
2; 1947 c 79 § .06.11; Rem. Supp 1947 § 45.06.11.]
Effective date—Supervision of transfers—1955 c 86: See notes following RCW 48.05.080.
48.06.120 Escrow of funds. (1) All funds received pursuant to a solicitation permit shall be deposited and held in
escrow in a bank or trust company under an agreement
approved by the commissioner. No part of any such deposit
shall be withdrawn, except:
(a) For the payment of promotion and organization
expenses as authorized by the solicitation permit; or
(b) for the purpose of making any deposit with the commissioner required for the issuance of a certificate of authority to an insurer; or
(c) if the proposed organization is not to be an insurer,
upon completion of payments on stock or syndicate subscriptions made under the solicitation permit and deposit or appropriation of such funds to the purposes specified in the solicitation permit; or
(d) for making of refunds as provided in RCW
48.06.170.
(2) When the commissioner has issued a certificate of
authority to an insurer any such funds remaining in escrow
for its account shall be released to the insurer. [1947 c 79 §
.06.12; Rem. Supp. 1947 § 45.06.12.]
48.06.120
48.06.130 Liability of organizers—Organization
expense. (1) The incorporators of any insurer or other corporation, or the persons proposing to form a reciprocal insurer,
or a syndicate, shall be jointly and severally liable for its
debts or liabilities until it has secured a certificate of authority, if an insurer, or has completed its organization if a corporation other than an insurer or a syndicate.
(2) Any portion of funds received on account of stock or
syndicate subscriptions which is allowed therefor under the
solicitation permit, may be applied concurrently toward the
48.06.130
(2004 Ed.)
Organization of Domestic Insurers
payment of promotion and organization expense theretofore
incurred. [1947 c 79 § .06.13; Rem. Supp. 1947 § 45.06.13.]
48.06.150
48.06.150 Payment for subscriptions—Forfeiture.
(1) No such proposed stock insurer, corporation, or syndicate
shall issue any share of stock or participation agreement
except for payment in cash or in securities eligible for investment of funds of insurers. No such shares or agreement shall
be issued until all subscriptions received under the solicitation permit have been so fully paid, nor, if an insurer, until a
certificate of authority has been issued to it.
(2) Every subscription contract to shares of a stock
insurer or other corporation calling for payment in installments, together with all amounts paid thereon may be forfeited at the option of the corporation, upon failure to make
good a delinquency in any installment upon not less than
forty-five days' notice in writing, and every such contract
shall so provide. [1947 c 79 § .06.15; Rem. Supp. 1947 §
45.06.15.]
48.06.160
48.06.160 Insurance applications—Mutual and
reciprocal insurers. All applications for insurance obtained
in forming a mutual or reciprocal insurer shall provide that:
(1) Issuance of the policy is contingent upon completion
of organization of the insurer and issuance to it of a certificate
of authority; and
(2) the prepaid premium or deposit will be refunded in
full to the applicant if the organization is not completed and
certificate of authority issued prior to the solicitation permit's
date of expiration; and
(3) the agreement for insurance is not effective until a
policy has been issued under it. [1947 c 79 § .06.16; Rem.
Supp. 1947 § 45.06.16.]
48.06.170
48.06.170 Procedure on failure to complete organization or to qualify. The commissioner shall withdraw all
funds held in escrow and refund to subscribers or applicants
all sums paid in on stock or syndicate subscriptions, less that
part of such sums paid in on subscriptions as has been
allowed and used for promotion and organization expenses,
and all sums paid in on insurance applications, and shall dissolve the proposed insurer, corporation or syndicate if
(1) the proposed insurer, corporation or syndicate fails to
complete its organization and obtain full payment for subscriptions and applications, and, if an insurer, it fails to secure
its certificate of authority, all before expiration of the solicitation permit; or
(2) the commissioner revokes the solicitation permit.
[1947 c 79 § .06.17; Rem. Supp. 1947 § 45.06.17.]
48.06.180
48.06.180 Subsequent financing. (1) No domestic
insurer, or insurance holding corporation, or stock corporation for financing operations of a mutual insurer, or attorney
in fact corporation of a reciprocal insurer, after
(a) it has received a certificate of authority, if an insurer,
or
(b) it has completed its initial organization and financing
if a corporation other than an insurer, shall solicit or receive
funds in exchange for any new issue of its corporate securities, other than through a stock dividend, until it has applied
(2004 Ed.)
48.06.200
to the commissioner for, and has been granted, a solicitation
permit.
(2) The commissioner shall issue such a permit unless he
finds that:
(a) The funds proposed to be secured are excessive in
amount for the purpose intended, or
(b) the proposed securities or the manner of their distribution are inequitable, or
(c) the issuance of the securities would jeopardize the
interests of policyholders or the holders of other securities of
the insurer or corporation.
(3) Any such solicitation permit granted by the commissioner shall be for such duration, and shall contain such terms
and be issued upon such conditions as the commissioner may
reasonably specify or require. [1949 c 190 § 6; 1947 c 79 §
.06.18; Rem. Supp. 1949 § 45.06.18.]
48.06.190 Penalty for exhibiting false accounts, etc.
Every person who, with intent to deceive, knowingly exhibits
any false account, or document, or advertisement, relative to
the affairs of any insurer, or of any corporation or syndicate
of the kind enumerated in RCW 48.06.030, formed or proposed to be formed, is guilty of a class B felony punishable
according to chapter 9A.20 RCW. [2003 c 53 § 268; 1947 c
79 § .06.19; Rem. Supp. 1947 § 45.06.19.]
48.06.190
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
48.06.200 Incorporation, articles of—Contents. (1)
This section applies to insurers incorporated in this state, but
no insurer heretofore lawfully incorporated in this state is
required to reincorporate or change its articles of incorporation by reason of any provisions of this section.
(2) The incorporators shall be individuals who are
United States citizens, of whom two-thirds shall be residents
of this state. The number of incorporators shall be not less
than five if a stock insurer, nor less than ten if a mutual
insurer.
(3) The incorporators shall execute articles of incorporation in duplicate, acknowledge their signatures thereunto
before an officer authorized to take acknowledgments of
deeds, and file both copies with the commissioner.
(4) After approval of the articles by the commissioner,
one copy shall be filed in the office of the commissioner and
the other copy shall be returned to the insurer.
(5) The articles of incorporation shall state:
First: The names and addresses of the incorporators.
Second: The name of the insurer. If a mutual insurer the
name shall include the word "mutual."
Third: (a) The objects for which the insurer is formed;
(b) whether it is a stock or mutual insurer, and if a mutual
property insurer only, whether it will insure on the cash premium or assessment plan;
(c) the kinds of insurance it will issue, according to the
designations made in this code.
Fourth: If a stock insurer, the amount of its capital, the
aggregate number of shares, and the par value of each share,
which par value shall be not less than ten dollars, except that
after the corporation has transacted business as an authorized
insurer in the state for five years or more, its articles of incorporation may be amended, at the option of its stockholders, to
48.06.200
[Title 48 RCW—page 29]
Chapter 48.07
Title 48 RCW: Insurance
provide for a par value of not less than one dollar per share. If
a mutual insurer, the maximum contingent liability of its policyholders for the payment of its expenses and losses occurring under its policies.
Fifth: The duration of its existence, which may be perpetual.
Sixth: The names and addresses of the directors, not less
than five in number, who shall constitute the board of directors of the insurer for the initial term, not less than two nor
more than six months, as designated in the articles of incorporation.
Seventh: The name of the city or town of this state in
which the insurer's principal place of business is to be
located.
Eighth: Other provisions not inconsistent with law as
may be deemed proper by the incorporators. [1998 c 23 § 2;
1981 c 302 § 37; 1963 c 60 § 1; 1949 c 190 § 7; 1947 c 79 §
.06.20; Rem. Supp. 1949 § 45.06.20.]
Severability—1981 c 302: See note following RCW 19.76.100.
Chapter 48.07
Chapter 48.07 RCW
DOMESTIC INSURERS—POWERS
Sections
48.07.010
48.07.020
48.07.030
48.07.040
48.07.050
48.07.060
48.07.070
48.07.080
48.07.100
48.07.110
48.07.130
48.07.140
48.07.150
48.07.160
48.07.170
48.07.180
48.07.190
48.07.200
48.07.210
Application of code to existing insurers.
Principal office.
Application of general corporation laws.
Annual, special meetings.
Directors—Qualifications—Removal.
Corrupt practices—Penalty.
Amendment of articles of incorporation.
Guarantee of officers' obligations prohibited.
Vouchers for expenditures.
Depositaries.
Pecuniary interest of officer or director, restrictions upon.
Compliance with foreign laws.
Solicitations in other states.
Continuing operation in event of national emergency—Declaration of purpose—"Insurer" defined.
Continuing operation in event of national emergency—Emergency bylaws.
Continuing operation in event of national emergency—Directors.
Continuing operation in event of national emergency—Officers.
Continuing operation in event of national emergency—Principal office and place of business.
Conversion to domestic insurer.
where inconsistent with the express provisions of this code,
shall govern the corporate powers, duties, and relationships
of incorporated domestic insurers and insurance holding corporations formed under the laws of the state of Washington.
[1985 c 364 § 1; 1947 c 79 § .07.03; Rem. Supp. 1947 §
45.07.03.]
Severability—1985 c 364: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1985 c 364 § 5.]
Provisions as to general business corporations: Title 23B RCW.
48.07.040
48.07.040 Annual, special meetings. Each incorporated domestic insurer shall hold an annual meeting of its
shareholders or members at such time and place as may be
stated in or fixed in accordance with its bylaws for the purpose of receiving reports of its affairs and to elect directors.
Each domestic insurance holding corporation shall hold an
annual meeting of its shareholders at such time and place as
may be stated in or fixed in accordance with its bylaws. Special meetings of the shareholders of an incorporated domestic
insurer or domestic insurance holding corporation shall be
called and held by such persons and in such a manner as
stated in the articles of incorporation or bylaws. [2002 c 300
§ 5; 1985 c 364 § 2; 1965 ex.s. c 70 § 4; 1947 c 79 § .07.04;
Rem. Supp. 1947 § 45.07.04.]
Severability—1985 c 364: See note following RCW 48.07.030.
48.07.050
48.07.050 Directors—Qualifications—Removal. Not
less than three-fourths of the directors of an incorporated
domestic insurer shall be United States or Canadian citizens,
and a majority of the board of directors of a mutual life
insurer shall be residents of this state. The directors of a
domestic insurer or domestic insurance holding corporation
may be removed with cause by a vote of a majority of its voting capital stock or members (if a mutual insurer) at a valid
meeting and said directors may be removed without cause by
a vote of sixty-seven percent of its voting capital stock or
members (if a mutual insurer) at a valid meeting. [1989 c 24
§ 1; 1985 c 364 § 3; 1957 c 193 § 21; 1947 c 79 § .07.05;
Rem. Supp. 1947 § 45.07.05.]
Severability—1985 c 364: See note following RCW 48.07.030.
Business corporations: Title 23B RCW.
Dissolution and winding up business corporation: Chapter 23B.14 RCW.
Interlocking ownership, management: RCW 48.30.250.
Merger or consolidation: RCW 48.31.010.
Organization of domestic insurers: Chapter 48.06 RCW.
48.07.010 Application of code to existing insurers.
Existing authorized domestic insurers shall continue to insure
only in accordance with the provisions of this code. [1947 c
79 § .07.01; Rem. Supp. 1947 § 45.07.01.]
48.07.010
48.07.020 Principal office. Every domestic insurer
shall establish and maintain in this state its principal office
and place of business. [1947 c 79 § .07.02; Rem. Supp. 1947
§ 45.07.02.]
48.07.020
48.07.030
48.07.030 Application of general corporation laws.
The laws of this state relating to private corporations, except
[Title 48 RCW—page 30]
48.07.060
48.07.060 Corrupt practices—Penalty. No person
shall buy or sell or barter a vote or proxy, relative to any
meeting of shareholders or members of an incorporated
domestic insurer, or engage in any corrupt or dishonest practice in or relative to the conduct of any such meeting. Violation of this section shall constitute a gross misdemeanor.
[1947 c 79 § .07.06; Rem. Supp. 1947 § 45.07.06.]
48.07.070
48.07.070 Amendment of articles of incorporation.
(1) Unless a vote of a greater proportion of directors or shares
is required by its articles of incorporation, amendments to the
articles of incorporation of a domestic insurer or a domestic
insurance holding corporation shall be made by a majority
vote of its board of directors and the vote or written assent of
a majority of its voting capital stock, or two-thirds of the
members (if a mutual insurer) voting at a valid meeting of
members.
(2004 Ed.)
Domestic Insurers—Powers
(2) The president and secretary of the insurer shall, under
the corporate seal, certify the amendment in duplicate, and
file both copies in the office of the commissioner as required
under this code for original articles of incorporation. Thereupon, subject to the requirements of RCW 48.08.010 relative
to increase of capital stock of a stock insurer, the amendment
shall become effective. [1998 c 23 § 3; 1985 c 364 § 4; 1981
c 302 § 38; 1947 c 79 § .07.07; Rem. Supp. 1947 § 45.07.07.]
Severability—1985 c 364: See note following RCW 48.07.030.
Severability—1981 c 302: See note following RCW 19.76.100.
48.07.080
48.07.080 Guarantee of officers' obligations prohibited. No domestic insurer or its affiliates or subsidiaries shall
guarantee the financial obligation of any director or officer of
such insurer or affiliate or subsidiary in his personal capacity,
and any such guaranty attempted shall be void.
This prohibition shall not apply to obligations of the
insurer under surety bonds or insurance contracts issued in
the regular course of business. [1947 c 79 § .07.08; Rem.
Supp. 1947 § 45.07.08.]
48.07.100
48.07.100 Vouchers for expenditures. (1) No domestic insurer shall make any disbursement of twenty-five dollars or more, unless evidenced by a voucher correctly
describing the consideration for the payment and supported
by a check or receipt endorsed or signed by or on behalf of
the person receiving the money.
(2) If the disbursement is for services and reimbursement, the voucher shall describe the services and itemize the
expenditures.
(3) If the disbursement is in connection with any matter
pending before any legislature or public body or before any
public official, the voucher shall also correctly describe the
nature of the matter and of the insurer's interest therein.
[1947 c 79 § .07.10; Rem. Supp. 1947 § 45.07.10.]
48.07.110
48.07.110 Depositaries. The funds of a domestic
insurer shall not be deposited in any bank or banking institution which has not first been approved as a depositary by the
insurer's board of directors or by a committee thereof designated for the purpose. [1947 c 79 § .07.11; Rem. Supp. 1947
§ 45.07.11.]
48.07.130
48.07.130 Pecuniary interest of officer or director,
restrictions upon. (1) No person having any authority in the
investment or disposition of the funds of a domestic insurer
and no officer or director of an insurer shall accept, except for
the insurer, or be the beneficiary of any fee, brokerage, gift,
commission, or other emolument because of any sale of
insurance or of any investment, loan, deposit, purchase, sale,
payment, or exchange made by or for the insurer, or be pecuniarily interested therein in any capacity; except, that such a
person may procure a loan from the insurer direct upon
approval by two-thirds of its directors and upon the pledge of
securities eligible for the investment of the insurer's funds
under this code.
(2) This section does not prohibit a life insurer from
making a policy loan to such person on a life insurance contract issued by it and in accordance with the terms thereof.
(2004 Ed.)
48.07.160
(3) The commissioner may permit additional exceptions
to the prohibition contained in subsection (1) of this section
to enable payment of reasonable compensation to a director
who is not otherwise an officer or employee of the insurer, or
to a corporation or firm in which the director is interested, for
necessary services performed or sales or purchases made to
or for the insurer in the ordinary course of the insurer's business and in the usual private professional or business capacity
of such director or such corporation or firm.
In addition, the commissioner may permit exceptions to
the prohibitions contained in subsection (1) of this section
where the payment of a fee, brokerage, gift, commission, or
other emolument is fully disclosed to the insurer's officers
and directors and is reasonable in relation to the service performed. [1989 c 228 § 1; 1981 c 339 § 5; 1947 c 79 § .07.13;
Rem. Supp. 1947 § 45.07.13.]
48.07.140
48.07.140 Compliance with foreign laws. Any domestic insurer doing business in another state, territory or sovereignty may design and issue insurance contracts and transact
insurance in such state, territory or sovereignty as required or
permitted by the laws thereof, any provision of the insurer's
articles of incorporation or bylaws notwithstanding. [1947 c
79 § .07.14; Rem. Supp. 1947 § 45.07.14.]
48.07.150
48.07.150 Solicitations in other states. (1) No domestic insurer shall knowingly solicit insurance business in any
reciprocating state in which it is not then licensed as an
authorized insurer.
(2) This section shall not prohibit advertising through
publications and radio broadcasts originating outside such
reciprocating state, if the insurer is licensed in a majority of
the states in which such advertising is disseminated, and if
such advertising is not specifically directed to residents of
such reciprocating state.
(3) This section shall not prohibit insurance, covering
persons or risks located in a reciprocating state, under contracts solicited and issued in states in which the insurer is then
licensed. Nor shall it prohibit insurance effectuated by the
insurer as an unauthorized insurer in accordance with the
laws of the reciprocating state. Nor shall it prohibit renewal
or continuance in force, with or without modification, of contracts otherwise lawful and which were not originally executed in violation of this section.
(4) A "reciprocating" state, as used herein, is one under
the laws of which a similar prohibition is imposed upon and
is enforced against insurers domiciled in that state.
(5) The commissioner shall suspend or revoke the certificate of authority of a domestic insurer found by him, after a
hearing, to have violated this section. [1988 c 248 § 4; 1947
c 79 § .07.15; Rem. Supp. 1947 § 45.07.15.]
48.07.160
48.07.160 Continuing operation in event of national
emergency—Declaration of purpose—"Insurer" defined.
It is desirable for the general welfare and in particular for the
welfare of insurance beneficiaries, policyholders, claimants
and others that the business of domestic insurers be continued
notwithstanding the event of a national emergency. The purpose of this section and RCW 48.07.170 through 48.07.200 is
to facilitate the continued operation of domestic insurers in
[Title 48 RCW—page 31]
48.07.170
Title 48 RCW: Insurance
the event that a national emergency is caused by an attack on
the United States which is so disruptive of normal business
and commerce in this state as to make it impossible or
impracticable for a domestic insurer to conduct its business in
accord with applicable provisions of law, its bylaws, or its
charter. When used in this section and RCW 48.07.170
through 48.07.200 the word "insurer" includes a fraternal
benefit society. [1963 c 195 § 25.]
48.07.200
48.07.200 Continuing operation in event of national
emergency—Principal office and place of business. At
any time the board of directors of a domestic insurer may, by
resolution, provide that in the event of such a national emergency the principal office and place of business of such
insurer shall be at such location as is named or described in
the resolution. Such resolution may provide for alternate
locations and establish an order of preference. [1963 c 195 §
29.]
48.07.170
48.07.170 Continuing operation in event of national
emergency—Emergency bylaws. The board of directors of
any domestic insurer may at any time adopt emergency
bylaws, subject to repeal or change by action of those having
power to adopt regular bylaws for such insurer, which shall
be operative during such a national emergency and which
may, notwithstanding any different provisions of the regular
bylaws, or of the applicable statutes, or of such insurer's charter, make any provision that may be reasonably necessary for
the operation of such insurer during the period of such emergency. [1963 c 195 § 26.]
48.07.180
48.07.180 Continuing operation in event of national
emergency—Directors. In the event that the board of directors of a domestic insurer has not adopted emergency bylaws,
the following provisions shall become effective upon the
occurrence of such a national emergency as above described:
(1) Three directors shall constitute a quorum for the
transaction of business at all meetings of the board.
(2) Any vacancy in the board may be filled by a majority
of the remaining directors, though less than a quorum, or by a
sole remaining director.
(3) If there are no surviving directors, but at least three
vice presidents of such insurer survive, the three vice presidents with the longest term of service shall be the directors
and shall possess all of the powers of the previous board of
directors and such powers as are granted herein or by subsequently enacted legislation. By majority vote, such emergency board of directors may elect other directors. If there are
not at least three surviving vice presidents, the commissioner
or duly designated person exercising the powers of the commissioner shall appoint three persons as directors who shall
include any surviving vice presidents and who shall possess
all of the powers of the previous board of directors and such
powers as are granted herein or by subsequently enacted legislation, and these persons by majority vote may elect other
directors. [1963 c 195 § 27.]
48.07.190
48.07.190 Continuing operation in event of national
emergency—Officers. At any time the board of directors of
a domestic insurer may, by resolution, provide that in the
event of such a national emergency and in the event of the
death or incapacity of the president, the secretary, or the treasurer of such insurer, such officers, or any of them, shall be
succeeded in the office by the person named or described in a
succession list adopted by the board of directors. Such list
may be on the basis of named persons or position titles, shall
establish the order of priority and may prescribe the conditions under which the powers of the office shall be exercised.
[1963 c 195 § 28.]
[Title 48 RCW—page 32]
48.07.210
48.07.210 Conversion to domestic insurer. (1)(a) Any
insurer duly organized under the laws of any other state and
admitted to transact insurance business in this state may
become a domestic insurer upon complying with all requirements of law for the organization of a domestic insurer in this
state and by designating its principal place of business at a
location in this state. Such domestic insurer is entitled to a
certificate of authority to transact insurance in this state, subject to the conditions set forth in (b) of this subsection, and is
subject to the authority and the jurisdiction of this state.
(b) Before being eligible to become a domestic insurer
under this section, an admitted insurer shall advise the commissioner, in writing, thirty days in advance of the proposed
date of its plan to become a domestic insurer. The commissioner must approve the plan in advance of the proposed date.
The commissioner shall not approve any such plan unless,
after a hearing, pursuant to such notice as the commissioner
may require, the commissioner finds that the plan is consistent with law, and that no reasonable objection to the plan
exists. If the commissioner fails to approve the plan, the commissioner shall state his or her reasons for failure to approve
the plan in an order issued at the hearing.
(2) After providing thirty days' advance written notice of
its plan to the commissioner and upon the written approval of
the commissioner in advance of the proposed transfer date,
any domestic insurer of this state may transfer its domicile to
any other state in which it is admitted to transact the business
of insurance. Upon transfer of domicile, the insurer ceases to
be a domestic insurer of this state. If otherwise qualified
under the laws of this state, the commissioner shall admit the
insurer to do business in this state as a foreign insurer. The
commissioner shall approve any proposed transfer of domicile unless the commissioner determines after a hearing, pursuant to such notice as the commissioner may require, that
the transfer is not in the best interests of the public or the
insurer's policyholders in this state. If the commissioner fails
to approve a proposed transfer of domicile, the commissioner
shall state his or her reasons for failure to approve the transfer
in an order issued at the hearing.
(3) When a foreign insurer, admitted to transact business
in this state, transfers its corporate domicile to this state or to
any other state, the certificate of authority, appointment of
statutory agent, and all approved licenses, policy forms, rates,
filings, and other authorizations and approvals in existence at
the time the foreign insurer transfers its corporate domicile
shall continue in effect.
(4) Any insurer transferring its corporate domicile under
this section shall file any amendments to articles of incorporation, bylaws, or other corporate documents that are required
to be filed in this state before the insurer may receive
(2004 Ed.)
Domestic Stock Insurers
approval of its proposed plan by the commissioner. [1988 c
248 § 5.]
Chapter 48.08
Chapter 48.08 RCW
DOMESTIC STOCK INSURERS
48.08.050
(3) Upon such reduction of capital stock, the insurer's
directors shall call in any outstanding stock certificates
required to be changed pursuant thereto, and issue proper certificates in their stead. [1947 c 79 § .08.02; Rem. Supp. 1947
§ 45.08.02.]
48.08.030
Sections
48.08.010
48.08.020
48.08.030
48.08.040
48.08.050
48.08.060
48.08.070
48.08.080
48.08.090
48.08.100
48.08.110
48.08.120
48.08.130
48.08.140
48.08.150
48.08.160
48.08.170
48.08.190
Increase of capital stock.
Reduction of capital stock.
Dividends to stockholders.
Illegal dividends, reductions—Penalty against directors.
Impairment of capital.
Repayment of contributions to surplus.
Participating policies.
Mutualization of stock insurers.
Stockholder meetings—Duty to inform stockholders of matters to be presented—Proxies.
Equity security—Defined.
Equity security—Duty to file statement of ownership.
Equity security—Profits from short term transactions—Remedies—Limitation of actions.
Equity security—Sales, unlawful practices.
Equity security—Exemptions—Sales by dealer.
Equity security—Exemptions—Foreign or domestic arbitrage
transactions.
Equity security—Exemptions—Securities registered or
required to be, or no class held by one hundred or more persons.
Equity security—Rules and regulations.
Failure to file required information, documents, or reports—
Forfeiture.
Merger or consolidation: RCW 48.31.010.
Organization of domestic insurers: Chapter 48.06 RCW.
Superadded liability of shareholders of domestic stock insurance companies:
State Constitution Art. 12 § 11.
48.08.010
48.08.010 Increase of capital stock. (1) Increase of the
capital stock of a domestic stock insurer shall be by amendment to its articles of incorporation.
(2) If the increased capital stock is to be distributed as a
stock dividend, such increased capital stock may be fully paid
in out of any available surplus funds as is provided in RCW
48.08.030, and such payment shall be effected by a transfer
on the insurer's books from its surplus account to its capital
account.
(3) When the increased capital has been fully paid in, a
certificate to such effect shall be made in quadruplicate under
oath and the corporate seal by the insurer's president and secretary and filed in the public offices named in RCW
48.07.070. [1953 c 197 § 4; 1947 c 79 § .08.01; Rem. Supp.
1947 § 45.08.01.]
48.08.020
48.08.020 Reduction of capital stock. (1) Reduction of
the capital stock of a domestic stock insurer shall be by
amendment of its articles of incorporation. No such reduction
shall be made which results in capital stock less in amount
than the minimum required by this code for the kinds of
insurance thereafter to be transacted by the insurer.
(2) No surplus funds of the insurer resulting from a
reduction of its capital stock shall be distributed to stockholders, except as a stock dividend on a subsequent increase of
capital stock, or upon dissolution of the insurer, or upon
approval of the commissioner of a distribution upon proof
satisfactory to him that the distribution will not impair the
interests of policyholders or the insurer's solvency.
(2004 Ed.)
48.08.030 Dividends to stockholders. (1) No domestic
stock insurer shall pay any cash dividend to stockholders
except out of earned surplus. For the purpose of this section,
"earned surplus" means that part of its available surplus funds
which is derived from any realized net profits on its business,
and does not include unrealized capital gains or reevaluation
of assets.
(2) Such an insurer may pay a stock dividend out of any
available surplus funds.
(3) Payment of any dividend to stockholders of a domestic stock insurer shall also be subject to all the limitations and
requirements governing the payment of dividends by other
private corporations.
(4) No dividend shall be declared or paid which would
reduce the insurer's surplus to an amount less than the minimum required for the kinds of insurance thereafter to be
transacted.
(5) For the purposes of this chapter "surplus funds"
means the excess of the insurer's assets over its liabilities,
including its capital stock as a liability.
(6) Available surplus means the excess over the minimum amount of surplus required for the kinds of insurance
the insurer is authorized to transact. [1993 c 462 § 52; 1947
c 79 § .08.03; Rem. Supp. 1947 § 45.08.03.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.08.040
48.08.040 Illegal dividends, reductions—Penalty
against directors. Any director of a domestic stock insurer
who votes for or concurs in the declaration or payment of any
dividend to stockholders or a reduction of capital stock not
authorized by law shall, in addition to any other liability
imposed by law, be guilty of a gross misdemeanor. [1947 c
79 § .08.04; Rem. Supp. 1947 § 45.08.04.]
48.08.050
48.08.050 Impairment of capital. (1) If the capital
stock of a domestic stock insurer becomes impaired, the commissioner shall at once determine the amount of the deficiency and serve notice upon the insurer to require its stockholders to make good the deficiency within ninety days after
service of such notice.
(2) The deficiency shall be made good in cash, or in
assets eligible under this code for the investment of the
insurer's funds, or by reduction of the insurer's capital stock
to an amount not below the minimum required for the kinds
of insurance to be thereafter transacted.
(3) If the deficiency is not made good and proof thereof
filed with the commissioner within such ninety-day period,
the insurer shall be deemed insolvent and shall be proceeded
against as authorized by this code.
(4) If the deficiency is not made good the insurer shall
not issue or deliver any policy after the expiration of such
ninety-day period. Any officer or director who violates or
knowingly permits the violation of this provision shall be
[Title 48 RCW—page 33]
48.08.060
Title 48 RCW: Insurance
subject to a fine of from fifty dollars to one thousand dollars
for each violation. [1947 c 79 § .08.05; Rem. Supp. 1947 §
45.08.05.]
48.08.060
48.08.060 Repayment of contributions to surplus.
Contributions to the surplus of a domestic stock insurer other
than resulting from sale of its capital stock, shall not be subject to repayment except out of surplus in excess of the minimum surplus initially required of such an insurer transacting
like kinds of insurance. [1947 c 79 § .08.06; Rem. Supp.
1947 § 45.08.06.]
48.08.070
48.08.070 Participating policies. (1) Any domestic
stock insurer may, if its charter so provides, issue policies
entitled to participate from time to time in the earnings of the
insurer through dividends.
(2) Any classification of its participating policies and of
risks assumed thereunder which the insurer may make shall
be reasonable. No dividend shall be paid which is inequitable
or which unfairly discriminates as between such classifications or as between policies within the same classification.
(3) No such insurer shall issue in this state both participating and nonparticipating policies for the same class of
risks; except, that both participating and nonparticipating life
insurance policies may be issued if the right or absence of the
right to participate is reasonably related to the premium
charged.
(4) Dividends to participating life insurance policies
issued by such insurer shall be paid only out of its surplus
funds as defined in subsection (5) of RCW 48.08.030. Dividends to participating policies for other kinds of insurance
shall be paid only out of that part of such surplus funds which
is derived from any realized net profits from the insurer's
business.
(5) No dividend, otherwise earned, shall be made contingent upon the payment of renewal premium on any policy.
[1947 c 79 § .08.07; Rem. Supp. 1947 § 45.08.07.]
48.08.080
48.08.080 Mutualization of stock insurers. (1) Any
domestic stock insurer may become a domestic mutual
insurer pursuant to such plan and procedure as are approved
by the commissioner in advance of such mutualization.
(2) The commissioner shall not approve any such plan,
procedure, or mutualization unless:
(a) It is equitable to both shareholders and policyholders.
(b) It is approved by vote of the holders of not less than
three-fourths of the insurer's capital stock having voting
rights, and by vote of not less than two-thirds of the insurer's
policyholders who vote on such plan, pursuant to such notice
and procedure as may be approved by the commissioner.
Such vote may be registered in person, by proxy, or by mail.
(c) If a life insurer, the right to vote thereon is limited to
those policyholders whose policies have face amounts of not
less than one thousand dollars and have been in force one
year or more.
(d) Mutualization will result in retirement of shares of
the insurer's capital stock at a price not in excess of the fair
value thereof as determined by competent disinterested
appraisers.
[Title 48 RCW—page 34]
(e) The plan provides for appraisal and purchase of the
shares of any nonconsenting stockholder in accordance with
the laws of this state relating to the sale or exchange of all the
assets of a private corporation.
(f) The plan provides for definite conditions to be fulfilled by a designated early date upon which such mutualization will be deemed effective.
(g) The mutualization leaves the insurer with surplus
funds reasonably adequate to preserve the security of its policyholders and its ability to continue successfully in business
in the states in which it is then authorized, and in the kinds of
insurance it is then authorized to transact. [1947 c 79 §
.08.08; Rem. Supp. 1947 § 45.08.08.]
48.08.090 Stockholder meetings—Duty to inform
stockholders of matters to be presented—Proxies. (1)
This section shall apply to all domestic stock insurers except:
(a) A domestic stock insurer having less than one hundred stockholders; except, that if ninety-five percent or more
of the insurer's stock is owned or controlled by a parent or
affiliated insurer, this section shall not apply to such insurer
unless its remaining shares are held by five hundred or more
stockholders.
(b) Domestic stock insurers which file with the Securities and Exchange Commission forms of proxies, consents
and authorizations pursuant to the Securities and Exchange
Act of 1934, as amended.
(2) Every such insurer shall seasonably furnish its stockholders in advance of stockholder meetings, information in
writing reasonably adequate to inform them relative to all
matters to be presented by the insurer's management for consideration of stockholders at such meeting.
(3) No person shall solicit a proxy, consent, or authorization in respect of any stock of such an insurer unless he furnishes the person so solicited with written information reasonably adequate as to
(a) the material matters in regard to which the powers so
solicited are proposed to be used, and
(b) the person or persons on whose behalf the solicitation
is made, and the interest of such person or persons in relation
to such matters.
(4) No person shall so furnish to another, information
which the informer knows or has reason to believe, is false or
misleading as to any material fact, or which fails to state any
material fact reasonably necessary to prevent any other statement made from being misleading.
(5) The form of all such proxies shall:
(a) Conspicuously state on whose behalf the proxy is
solicited;
(b) Provide for dating the proxy;
(c) Impartially identify each matter or group of related
matters intended to be acted upon;
(d) Provide means for the principal to instruct the vote of
his shares as to approval or disapproval of each matter or
group, other than election to office; and
(e) Be legibly printed, with context suitably organized.
Except, that a proxy may confer discretionary authority
as to matters as to which choice is not specified pursuant to
item (d), above, if the form conspicuously states how it is
intended to vote the proxy or authorization in each such case;
and may confer discretionary authority as to other matters
48.08.090
(2004 Ed.)
Domestic Stock Insurers
48.08.160
which may come before the meeting but unknown for a reasonable time prior to the solicitation by the persons on whose
behalf the solicitation is made.
(6) No proxy shall confer authority (a) to vote for election of any person to any office for which a bona fide nominee is not named in the proxy statement, or (b) to vote at any
annual meeting (or adjournment thereof) other than the
annual meeting next following the date on which the proxy
statement and form were furnished stockholders.
(7) The commissioner shall have authority to make and
promulgate reasonable rules and regulations for the effectuation of this section, and in so doing shall give due consideration to rules and regulations promulgated for similar purposes by the insurance supervisory officials of other states.
[1965 ex.s. c 70 § 5.]
security sold for a period exceeding six months. Suit to
recover such profit may be instituted at law or in equity in any
court of competent jurisdiction by the insurer, or by the
owner of any security of the insurer in the name and in behalf
of the insurer if the insurer shall fail or refuse to bring such
suit within sixty days after request or shall fail diligently to
prosecute the same thereafter: PROVIDED, That no such
suit shall be brought more than two years after the date such
profit was realized. This section shall not be construed to
cover any transaction where such beneficial owner was not
such both at the time of the purchase and sale, or the sale and
purchase, of the security involved, or any transaction or
transactions which the commissioner by rules and regulations
may exempt as not comprehended within the purpose of this
section. [1965 ex.s. c 70 § 7.]
Exemption from federal registration: 15 U.S.C. §78 l(g)(2)(G).
Exemption from federal registration: 15 U.S.C. §78 l(g)(2)(G).
48.08.130
48.08.100
48.08.100 Equity security—Defined. The term
"equity security" when used in RCW 48.08.100 through
48.08.160 means any stock or similar security; or any security convertible, with or without consideration, into such a
security, or carrying any warrant or right to subscribe to or
purchase such a security; or any such warrant or right; or any
other security which the commissioner shall deem to be of
similar nature and consider necessary or appropriate, by such
rules and regulations as he may prescribe in the public interest or for the protection of investors, to treat as an equity
security. [1965 ex.s. c 70 § 11.]
48.08.110
48.08.110 Equity security—Duty to file statement of
ownership. Every person who is directly or indirectly the
beneficial owner of more than ten percent of any class of any
equity security of a domestic stock insurer, or who is a director or an officer of such insurer, shall file with the commissioner on or before the 30th day of September, 1965, or
within ten days after he becomes such beneficial owner,
director or officer, a statement, in such form as the commissioner may prescribe, of the amount of all equity securities of
such insurer of which he is the beneficial owner, and within
ten days after the close of each calendar month thereafter, if
there has been a change in such ownership during such
month, shall file with the commissioner a statement, in such
form as the commissioner may prescribe, indicating his ownership at the close of the calendar month and such changes in
his ownership as have occurred during such calendar month.
[1965 ex.s. c 70 § 6.]
48.08.120
48.08.120 Equity security—Profits from short term
transactions—Remedies—Limitation of actions. For the
purpose of preventing the unfair use of information which
may have been obtained by such beneficial owner, director or
officer by reason of his relationship to such insurer, any profit
realized by him from any purchase and sale, or any sale and
purchase, of any equity security of such insurer within any
period of less than six months, unless such security was
acquired in good faith in connection with a debt previously
contracted, shall inure to and be recoverable by the insurer,
irrespective of any intention on the part of such beneficial
owner, director or officer in entering into such transaction of
holding the security purchased or of not repurchasing the
(2004 Ed.)
48.08.130 Equity security—Sales, unlawful practices. It shall be unlawful for any such beneficial owner,
director or officer, directly or indirectly, to sell any equity
security of such insurer if the person selling the security or
his principal (1) does not own the security sold, or (2) if owning the security, does not deliver it against such sale within
twenty days thereafter, or does not within five days after such
sale deposit it in the mails or other usual channels of transportation: PROVIDED, That no person shall be deemed to have
violated this section if he proves that notwithstanding the
exercise of good faith he was unable to make such delivery or
deposit within such time, or that to do so would cause undue
inconvenience or expense. [1965 ex.s. c 70 § 8.]
48.08.140
48.08.140 Equity security—Exemptions—Sales by
dealer. The provisions of RCW 48.08.120 shall not apply to
any purchase and sale, or sale and purchase, and the provisions of RCW 48.08.130 shall not apply to any sale of an
equity security of a domestic stock insurer not then or theretofore held by him in an investment account, by a dealer in
the ordinary course of his business and incident to the establishment or maintenance by him of a primary or secondary
market (otherwise than on an exchange as defined in the
Securities Exchange Act of 1934) for such security. The commissioner may, by such rules and regulations as he deems
necessary or appropriate in the public interest, define and prescribe terms and conditions with respect to securities held in
an investment account and transactions made in the ordinary
course of business and incident to the establishment or maintenance of a primary or secondary market. [1965 ex.s. c 70 §
9.]
48.08.150
48.08.150 Equity security—Exemptions—Foreign or
domestic arbitrage transactions. The provisions of RCW
48.08.110, 48.08.120 and 48.08.130 shall not apply to foreign
or domestic arbitrage transactions unless made in contravention of such rules and regulations as the commissioner may
adopt in order to carry out the purposes of RCW 48.08.100
through 48.08.160. [1965 ex.s. c 70 § 10.]
48.08.160
48.08.160 Equity security—Exemptions—Securities
registered or required to be, or no class held by one hundred or more persons. The provisions of RCW 48.08.110,
[Title 48 RCW—page 35]
48.08.170
Title 48 RCW: Insurance
48.08.120, and 48.08.130 shall not apply to equity securities
of a domestic stock insurer if (1) such securities shall be registered, or shall be required to be registered, pursuant to section 12 of the Securities Exchange Act of 1934, as amended,
or if (2) such domestic stock insurer shall not have any class
of its equity securities held of record by one hundred or more
persons on the last business day of the year next preceding
the year in which equity securities of the insurer would be
subject to the provisions of RCW 48.08.110, 48.08.120, and
48.08.130 except for the provisions of this subsection (2).
[1965 ex.s. c 70 § 12.]
48.08.170
48.08.170 Equity security—Rules and regulations.
The commissioner shall have the power to make such rules
and regulations as may be necessary for the execution of the
functions vested in him by RCW 48.08.100 through
48.08.160, and may for such purpose classify domestic stock
insurers, securities, and other persons or matters within his
jurisdiction. No provision of RCW 48.08.110, 48.08.120, and
48.08.130 imposing any liability shall apply to any act done
or omitted in good faith in conformity with any rule or regulation of the commissioner, notwithstanding that such rule or
regulation may, after such act or omission, be amended or
rescinded or determined by judicial or other authority to be
invalid for any reason. [1965 ex.s. c 70 § 13.]
48.08.190
48.08.190 Failure to file required information, documents, or reports—Forfeiture. Any person who fails to file
information, documents, or reports required to be filed under
chapter 241, Laws of 1969 ex. sess. or any rule or regulation
thereunder shall forfeit to the state of Washington the sum of
one hundred dollars for each and every day such failure to file
shall continue. Such forfeiture, which shall be in lieu of any
criminal penalty for such failure to file which might be
deemed to arise under this title, shall be payable to the treasurer of the state of Washington and shall be recoverable in a
civil suit in the name of the state of Washington. [1969 ex.s.
c 241 § 18.]
Chapter 48.09
Chapter 48.09 RCW
MUTUAL INSURERS
Sections
48.09.010
48.09.090
48.09.100
48.09.110
48.09.120
48.09.130
48.09.140
48.09.150
48.09.160
48.09.180
48.09.190
48.09.210
48.09.220
48.09.230
48.09.234
48.09.235
48.09.240
48.09.250
48.09.260
48.09.270
48.09.280
48.09.290
48.09.300
Initial qualifications.
Additional kinds of insurance.
Minimum surplus.
Membership.
Rights of members.
Bylaws.
Notice of annual meeting.
Voting—Proxies.
Directors—Disqualification.
Limitation of expenses as to property and casualty insurance.
Procedure upon violation of limitation.
Limitation of action on officer's salary.
Contingent liability of members.
Assessment of members.
Issuing a capital call—Notice—Insurer's duties—Rules.
Issuing a capital call—Notice—Insurer's duties—Rules.
Contingent liability of members of assessment insurer.
Contingent liability as asset.
Liability as lien on policy reserves.
Nonassessable policies.
Qualification on issuance of nonassessable policies.
Revocation of right to issue nonassessable policies.
Dividends.
[Title 48 RCW—page 36]
48.09.310
48.09.320
48.09.330
48.09.340
48.09.350
48.09.360
Nonparticipating policies.
Borrowed capital.
Repayment of borrowed capital.
Impairment of surplus.
Reorganization of mutual as stock insurer—Reinsurance—
Approval.
Distribution of assets and ownership equities upon liquidation.
Dividends not to be guaranteed: RCW 48.30.100.
Merger or consolidation: RCW 48.31.010.
Organization of domestic insurers: Chapter 48.06 RCW.
Policy dividends are payable to real party in interest: RCW 48.18.340.
48.09.010
48.09.010 Initial qualifications. (1) The commissioner
shall not issue a certificate of authority to a domestic mutual
insurer unless it has fully qualified therefor under this code,
and unless it has met the minimum requirements for the kind
of insurance it proposes to transact as provided in this chapter.
(2) All applications for insurance submitted by such an
insurer as fulfilling qualification requirements shall be bona
fide applications from persons resident in this state covering
lives, property, or risks resident or located in this state.
(3) All qualifying premiums collected and initial surplus
funds of such an insurer shall be in cash. Any deposit made
by such an insurer in lieu of applications, premiums, and initial surplus funds, shall be in cash or in securities eligible for
the investment of the capital of a domestic stock insurer
transacting the same kind of insurance. [1947 c 79 § .09.01;
Rem. Supp. 1947 § 45.09.01.]
48.09.090
48.09.090 Additional kinds of insurance. A domestic
mutual insurer may be authorized to transact kinds of insurance in addition to that for which it was originally authorized,
if it has otherwise complied with the provisions of this code
therefor, and while it possesses and maintains surplus funds
in aggregate amount not less than the minimum amount of
capital and surplus required under this code of a domestic
stock insurer authorized to transact like kinds of insurance
pursuant to RCW 48.05.340. [1980 c 135 § 2; 1957 c 193 §
5; 1947 c 79 § .09.09; Rem. Supp. 1947 § 45.09.09.]
48.09.100
48.09.100 Minimum surplus. A domestic mutual
insurer on the cash premium plan shall at all times have and
maintain surplus funds, representing the excess of its assets
over its liabilities, in amount not less than the aggregate of
(1) the amount of any surplus funds deposited by it with
the commissioner to qualify for its original certificate of
authority, and
(2) the amount of any additional surplus required of it
pursuant to RCW 48.09.090 for authority to transact additional kinds of insurance. [1963 c 195 § 3; 1947 c 79 §
.09.10; Rem. Supp. 1947 § 45.09.10.]
48.09.110
48.09.110 Membership. (1) Each holder of one or
more insurance contracts issued by a domestic mutual
insurer, other than a contract of reinsurance, is a member of
the insurer, with the rights and obligations of such membership, and each insurance contract so issued shall effectively
so stipulate.
(2) Any person, government or governmental agency,
state or political subdivision thereof, public or private corporation, board, association, estate, trustee or fiduciary, may be
(2004 Ed.)
Mutual Insurers
a member of a mutual insurer. [1947 c 79 § .09.11; Rem.
Supp. 1947 § 45.09.11.]
48.09.120
48.09.120 Rights of members. (1) A domestic mutual
insurer is owned by and shall be operated in the interest of its
members.
(2) Each member is entitled to one vote in the election of
directors and on matters coming before corporate meetings of
members, subject to such reasonable minimum requirements
as to duration of membership and amount of insurance held
as may be made in the insurer's bylaws. The person named as
the policyholder in any group insurance policy issued by such
insurer shall be deemed the member, and shall have but one
such vote regardless of the number of individuals insured by
such policy.
(3) With respect to the management, records, and affairs
of the insurer, a member shall have the same character of
rights and relationship as a stockholder has toward a domestic stock insurer. [1947 c 79 § .09.12; Rem. Supp. 1947 §
45.09.12.]
48.09.130
48.09.130 Bylaws. A domestic mutual insurer shall
adopt bylaws for the conduct of its affairs. Such bylaws, or
any modification thereof, shall forthwith be filed with the
commissioner. The commissioner shall disapprove any such
bylaws, or as so modified, if he finds after a hearing thereon,
that it is not in compliance with the laws of this state, and he
shall forthwith communicate such disapproval to the insurer.
No such bylaw, or modification, so disapproved shall be
effective during the existence of such disapproval. [1947 c
79 § .09.13; Rem. Supp. 1947 § 45.09.13.]
48.09.140
48.09.140 Notice of annual meeting. (1) Notice of the
time and place of the annual meeting of members of a domestic mutual insurer shall be given by imprinting such notice
plainly on the policies issued by the insurer.
(2) Any change of the date or place of the annual meeting
shall be made only by an annual meeting of members. Notice
of such change may be given:
(a) By imprinting such new date or place on all policies
which will be in effect as of the date of such changed meeting; or
(b) Unless the commissioner otherwise orders, notice of
the new date or place need be given only through policies
issued after the date of the annual meeting at which such
change was made and in premium notices and renewal certificates issued during the twenty-four months immediately following such meeting. [1947 c 79 § .09.14; Rem. Supp. 1947
§ 45.09.14.]
48.09.150
48.09.150 Voting—Proxies. (1) A member of a domestic mutual insurer may vote in person or by proxy given
another member on any matter coming before a corporate
meeting of members.
(2) An officer of the insurer shall not hold or vote the
proxy of any member.
(3) No such proxy shall be valid beyond the earlier of the
following dates:
(a) The date of expiration set forth in the proxy; or
(b) the date of termination of membership; or
(2004 Ed.)
48.09.220
(c) five years from the date of execution of the proxy.
(4) No member's vote upon any proposal to divest the
insurer of its business and assets, or the major part thereof,
shall be registered or taken except in person or by a proxy
newly executed and specific as to the matter to be voted upon.
[1947 c 79 § .09.15; Rem. Supp. 1947 § 45.09.15.]
48.09.160
48.09.160 Directors—Disqualification. No individual
shall be a director of a domestic mutual insurer by reason of
his holding public office. Adjudication as a bankrupt or taking the benefit of any insolvency law or making a general
assignment for the benefit of creditors disqualifies an individual from being or acting as a director. [1947 c 79 § .09.16;
Rem. Supp. 1947 § 45.09.16.]
48.09.180
48.09.180 Limitation of expenses as to property and
casualty insurance. (1) For any calendar year after its first
two full calendar years of operation, no domestic mutual
insurer on the cash premium plan, other than one issuing nonassessable policies, shall incur any costs or expense in the
writing or administration of property, disability, and casualty
insurances (other than boiler and machinery or elevator)
transacted by it which, exclusive of losses paid, loss adjustment expenses, investment expenses, dividends, and taxes
exceeds the sum of
(a) forty percent of the net premium income during that
year after deducting therefrom net earned reinsurance premiums for such year, plus
(b) all of the reinsurance commissions received on reinsurance ceded by it.
(2) The bylaws of every domestic mutual property
insurer on the assessment premium plan shall impose a reasonable limitation upon its expenses. [1949 c 190 § 8; 1947
c 79 § .09.18; Rem. Supp. 1949 § 45.09.18.]
48.09.190
48.09.190 Procedure upon violation of limitation.
The officers and directors of an insurer violating RCW
48.09.180 shall be jointly and severally liable to the insurer
for any excess of expenses incurred. If the insurer fails to
exercise reasonable diligence or refuses to enforce such liability, the commissioner may prosecute action thereon for the
benefit of the insurer. Such failure or refusal constitutes
grounds for revocation of the insurer's certificate of authority.
[1947 c 79 § .09.19; Rem. Supp. 1947 § 45.09.19.]
48.09.210
48.09.210 Limitation of action on officer's salary. No
action to recover, or on account of, any salary or other compensation due or claimed to be due any officer or director of
a domestic mutual insurer, or on any note or agreement relative thereto, shall be brought against such insurer after twelve
months after the date on which such salary or compensation,
or any installment thereof, first accrued. [1947 c 79 § .09.21;
Rem. Supp. 1947 § 45.09.21.]
48.09.220
48.09.220 Contingent liability of members. (1) Each
member of a domestic mutual insurer, except as otherwise
provided in this chapter, shall have a contingent liability, pro
rata and not one for another, for the discharge of its obligations. The contingent liability shall be in such maximum
amount as is stated in the insurer's articles of incorporation,
[Title 48 RCW—page 37]
48.09.230
Title 48 RCW: Insurance
but shall be not less than one, nor more than five, additional
premiums for the member's policy at the annual premium rate
and for a term of one year.
(2) Every policy issued by the insurer shall contain a
statement of the contingent liability.
(3) Termination of the policy of any such member shall
not relieve the member of contingent liability for his proportion of the obligations of the insurer which accrued while the
policy was in force. [1949 c 190 § 9; 1947 c 79 § .09.22;
Rem. Supp. 1949 § 45.09.22.]
48.09.230
48.09.230 Assessment of members. (1) If at any time
the assets of a domestic mutual insurer doing business on the
cash premium plan are less than its liabilities and the minimum surplus, if any, required of it by this code as prerequisite
for continuance of its certificate of authority, and the deficiency is not cured from other sources, its directors may, if
approved by the commissioner, make an assessment only on
its members who at any time within the twelve months immediately preceding the date such assessment was authorized by
its directors held policies providing for contingent liability.
(2) Such an assessment shall be for such an amount of
money as is required, in the opinion of the commissioner, to
render the insurer fully solvent, but not to result in surplus in
excess of five percent of the insurer's liabilities as of the date
of the assessment.
(3) A member's proportionate part of any such assessment shall be computed by applying to the premium earned,
during the period since the deficiency first appeared, on his
contingently liable policy or policies the ratio of the total
assessment to the total premium earned during such period on
all contingently liable policies which are subject to the
assessment.
(4) No member shall have an offset against any assessment for which he is liable on account of any claim for
unearned premium or losses payable. [1949 c 190 § 10; 1947
c 79 § .09.23; Rem. Supp. 1949 § 45.09.23.]
48.09.234
48.09.234 Issuing a capital call—Notice—Insurer's
duties—Rules. (Expires January 1, 2006.) (1) In addition
to authority granted by RCW 48.09.220 and 48.09.230, a
domestic mutual insurer meeting all the requirements of this
section may increase its surplus by issuing a capital call. A
capital call requires policyholders or applicants for insurance
to pay a sum, in addition to premium, to be eligible to renew
a policy or be issued a new policy. A policyholder that does
not pay the amount of a call cannot be cancelled or denied the
benefits of an existing policy.
(2) Prior to issuing a capital call, the insurer must have:
(a) Adopted articles of incorporation or other organizational documents authorizing capital calls; and
(b) Provided information concerning the insurer's
authority to issue a capital call to every policyholder. This
information must be provided at least ninety days prior to a
capital call.
(3) The insurer must notify the commissioner of its intent
to issue a capital call at least ninety days prior to the capital
call. The notice to the commissioner must include:
(a) A statement of each of the following:
(i) The specific purpose or purposes of the capital call;
[Title 48 RCW—page 38]
(ii) The total amount intended to be raised by issuance of
the capital call;
(iii) The amount intended to be raised for each stated
purpose;
(iv) The grounds relied upon by the insurer in deciding
that the capital call is the best option available to the insurer
for raising capital; and
(v) Each of the alternative methods of raising capital the
insurer considered and the reasons the insurer rejected each
alternative in favor of the capital call;
(b) For the ten years immediately preceding the filing of
the notice, a year by year accounting of:
(i) All rate filings and actions;
(ii) The total of all underwriting losses; and
(iii) The total amount of dividends paid to policyholders;
and
(c) A complete application for a solicitation permit as
required in RCW 48.06.030.
(4) Before an insurer may issue a capital call, the insurer
must:
(a) Notify the commissioner and provide information as
required in subsection (3) of this section;
(b) Provide any and all additional information that the
commissioner may determine is useful or necessary in evaluating the merits of the proposed capital call;
(c) Receive approval of the policy or insuring instrument
from the commissioner; and
(d) Receive approval of the commissioner for the capital
call and the solicitation permit.
The commissioner may disapprove a capital call if he or
she does not believe it is in the best interest of the insurer, the
policyholders, or the citizens of the state of Washington. In
making this determination, the commissioner may consider
the financial health of the insurer, the impact on the marketplace, the possible use of other means to raise capital, the frequency of previous capital calls by the insurer, the effect of
raising premiums instead of a capital call, the impact on state
revenue, or any other factor the commissioner deems proper.
(5) The funds raised by an approved capital call are not
premiums for the purposes of RCW 48.14.020.
(6) The commissioner may adopt rules to implement this
section. [2004 c 89 § 1.]
Expiration date—2004 c 89 § 1: "Section 1 of this act expires January
1, 2006." [2004 c 89 § 3.]
Effective date—2004 c 89: See note following RCW 48.09.235.
48.09.235 Issuing a capital call—Notice—Insurer's
duties—Rules. (Effective January 1, 2006.) (1) In addition
to authority granted by RCW 48.09.220 and 48.09.230, a
domestic mutual insurer meeting all the requirements of this
section may increase its surplus by issuing a capital call. A
capital call requires policyholders or applicants for insurance
to pay a sum, in addition to premium, to be eligible to renew
a policy or be issued a new policy. A policyholder that does
not pay the amount of a call cannot be cancelled or denied the
benefits of an existing policy.
(2) Prior to issuing a capital call, the insurer must have:
(a) Adopted articles of incorporation or other organizational documents authorizing capital calls; and
(b) For any capital call issued on or after January 1,
2006, included information concerning the insurer's authority
48.09.235
(2004 Ed.)
Mutual Insurers
to issue a capital call in the policy of every policyholder.
This information must be provided at least one full policy
renewal cycle prior to a capital call.
(3) The insurer must notify the commissioner of its intent
to issue a capital call at least ninety days prior to the capital
call. The notice to the commissioner must include:
(a) A statement of each of the following:
(i) The specific purpose or purposes of the capital call;
(ii) The total amount intended to be raised by issuance of
the capital call;
(iii) The amount intended to be raised for each stated
purpose;
(iv) The grounds relied upon by the insurer in deciding
that the capital call is the best option available to the insurer
for raising capital; and
(v) Each of the alternative methods of raising capital the
insurer considered and the reasons the insurer rejected each
alternative in favor of the capital call;
(b) For the ten years immediately preceding the filing of
the notice, a year by year accounting of:
(i) All rate filings and actions;
(ii) The total of all underwriting losses; and
(iii) The total amount of dividends paid to policyholders;
and
(c) A complete application for a solicitation permit as
required in RCW 48.06.030.
(4) Before an insurer may issue a capital call, the insurer
must:
(a) Notify the commissioner and provide information as
required in subsection (3) of this section;
(b) Provide any and all additional information that the
commissioner may determine is useful or necessary in evaluating the merits of the proposed capital call;
(c) Receive approval of the policy or insuring instrument
from the commissioner; and
(d) Receive approval of the commissioner for the capital
call and the solicitation permit.
The commissioner may disapprove a capital call if he or
she does not believe it is in the best interest of the insurer, the
policyholders, or the citizens of the state of Washington. In
making this determination, the commissioner may consider
the financial health of the insurer, the impact on the marketplace, the possible use of other means to raise capital, the frequency of previous capital calls by the insurer, the effect of
raising premiums instead of a capital call, the impact on state
revenue, or any other factor the commissioner deems proper.
(5) The funds raised by an approved capital call are not
premiums for the purposes of RCW 48.14.020.
(6) The commissioner may adopt rules to implement this
section. [2004 c 89 § 2.]
Effective date—2004 c 89 § 2: "Section 2 of this act takes effect January 1, 2006." [2004 c 89 § 4.]
Effective date—2004 c 89: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[March 22, 2004]." [2004 c 89 § 5.]
48.09.240
48.09.240 Contingent liability of members of assessment insurer. The contingent liability of members of a
domestic mutual insurer doing business on the assessment
premium plan shall be called upon and enforced by its direc(2004 Ed.)
48.09.280
tors as provided in its bylaws. [1947 c 79 § .09.24; Rem.
Supp. 1947 § 45.09.24.]
48.09.250
48.09.250 Contingent liability as asset. Any contingent liability of members of a domestic mutual insurer to
assessment does not constitute an asset of the insurer in any
determination of its financial condition. [1949 c 190 § 11;
1947 c 79 § .09.25; Rem. Supp. 1949 § 45.09.25.]
48.09.260
48.09.260 Liability as lien on policy reserves. As to
life insurance, any portion of an assessment of contingent liability upon a policyholder which remains unpaid following
notice of such assessment, demand for payment, and lapse of
a reasonable waiting period as specified in such notice, may,
if approved by the commissioner, be secured by placing a lien
on the reserves held by the insurer to the credit of such policyholder. [1949 c 190 § 12; 1947 c 79 § .09.26; Rem. Supp.
1949 § 45.09.26.]
48.09.270
48.09.270 Nonassessable policies. (1) A domestic
mutual insurer on the cash premium plan, after it has established a surplus not less in amount than the minimum capital
funds required of a domestic stock insurer to transact like
kinds of insurance, and for so long as it maintains such surplus, may extinguish the contingent liability of its members
to assessment and omit provisions imposing contingent liability in all policies currently issued.
(2) Any deposit made with the commissioner as a prerequisite to the insurer's certificate of authority may be included
as part of the surplus required in this section.
(3) When the surplus has been so established and the
commissioner has so ascertained, he shall issue to the insurer,
at its request, his certificate authorizing the extinguishment of
the contingent liability of its members and the issuance of
policies free therefrom.
(4) While it maintains surplus funds in amount not less
than the minimum capital required of a domestic stock
insurer authorized to transact like kinds of insurance, and
subject to the requirements of RCW 48.05.360 as to special
surplus, a foreign or alien mutual insurer on the cash premium plan may, if consistent with its charter and the laws of
its domicile, issue nonassessable policies covering subjects
located, resident, or to be performed in this state. [1963 c 195
§ 4; 1947 c 79 § .09.27; Rem. Supp. 1947 § 45.09.27.]
48.09.280
48.09.280 Qualification on issuance of nonassessable
policies. The commissioner shall not authorize a domestic
mutual insurer so to extinguish the contingent liability of any
of its members or in any of its policies to be issued, unless it
qualifies to and does extinguish such liability of all its members and in all such policies for all kinds of insurance transacted by it. Except, that if required by the laws of another
state in which such an insurer is transacting insurance as an
authorized insurer, the insurer may issue policies providing
for the contingent liability of such of its members as may
acquire such policies in such state, and need not extinguish
the contingent liability applicable to policies theretofore in
force in such state. [1947 c 79 § .09.28; Rem. Supp. 1947 §
45.09.28.]
[Title 48 RCW—page 39]
48.09.290
Title 48 RCW: Insurance
48.09.290 Revocation of right to issue nonassessable
policies. (1) The commissioner shall revoke the authority of
a domestic mutual insurer so to extinguish the contingent liability of its members if
(a) at any time the insurer's assets are less than the sum
of its liabilities and the surplus required for such authority, or
(b) the insurer, by resolution of its directors approved by
its members, requests that the authority be revoked.
(2) Upon revocation of such authority for any cause, the
insurer shall not thereafter issue any policies without contingent liability, nor renew any policies then in force without
written endorsement thereon providing for contingent liability. [1947 c 79 § .09.29; Rem. Supp. 1947 § 45.09.29.]
48.09.290
48.09.300 Dividends. (1) The directors of a domestic
mutual insurer on the cash premium plan may from time to
time apportion and pay to its members as entitled thereto,
dividends only out of that part of its surplus funds which are
in excess of its required minimum surplus and which represent net realized savings and net realized earnings from its
business.
(2) Any classification of its participating policies and of
risks assumed thereunder which the insurer may make shall
be reasonable. No dividend shall be paid which is inequitable, or which unfairly discriminates as between such classifications or as between policies within the same classification.
(3) No dividend, otherwise earned, shall be made contingent upon the payment of renewal premium on any policy.
[1947 c 79 § .09.30; Rem. Supp. 1947 § 45.09.30.]
48.09.300
48.09.310 Nonparticipating policies. (1) If its articles
of incorporation so provide, a domestic mutual insurer on the
cash premium plan may, while it is authorized to issue policies without contingent liability to assessment, issue policies
not entitled to participate in the insurer's savings and earnings.
(2) Such insurer shall not issue in this state both participating and nonparticipating policies for the same class of
risks; except, that both participating and nonparticipating life
insurance policies may be issued if the right or absence of the
right to participate is reasonably related to the premium
charged. [1947 c 79 § .09.31; Rem. Supp. 1947 § 45.09.31.]
48.09.310
48.09.320 Borrowed capital. (1) A domestic mutual
insurer may, with the commissioner's advance approval and
without the pledge of any of its assets, borrow money to
defray the expenses of its organization or for any purpose
required by its business, upon an agreement that such money
and such fair and reasonable interest thereon as may be
agreed upon, shall be repaid only out of the insurer's earned
surplus in excess of its required minimum surplus.
(2) An insurer borrowing funds under this section must
comply with the national association of insurance
commissioner's - accounting practices and procedures manual which sets forth requirements for borrowed money to be
treated as surplus notes for financial accounting purposes.
(3) The commissioner's approval of such borrowed
funds, if granted, shall specify the amount to be borrowed,
the purpose for which the money is to be used, the terms and
form of the loan agreement, the date by which the loan must
be completed, fair and reasonable commissions or promo48.09.320
[Title 48 RCW—page 40]
tional expenses to be incurred or to be paid, and such other
related matters as the commissioner shall deem proper. If the
money is to be borrowed upon multiple agreements, the
agreements shall be serially numbered. No loan agreement or
series thereof shall have or be given any preferential rights
over any other such loan agreement or series. [2003 c 249 §
1; 1947 c 79 § .09.32; Rem. Supp. 1947 § 45.09.32.]
48.09.330
48.09.330 Repayment of borrowed capital. (1) The
insurer may repay any loan received pursuant to RCW
48.09.320, or any part thereof as approved by the commissioner, only out of its funds which represent such loan or realized net earned surplus. No repayment shall be made which
reduces the insurer's surplus below the minimum surplus
required for the kinds of insurance transacted.
(2) The insurer shall repay any such loan or the largest
possible part thereof when the purposes for which such funds
were borrowed have been fulfilled and when the insurer's surplus is adequate to so repay without unreasonable impairment
of the insurer's operations.
(3) No repayment of such loan shall be made unless
approved by the commissioner. The insurer shall notify the
commissioner in writing not less than sixty days in advance
of its intention to repay such loan or any part thereof, and the
commissioner shall forthwith ascertain whether the insurer's
financial condition is such that the repayment can properly be
made.
(4) Upon dissolution and liquidation of the insurer, after
the retirement of all its other outstanding obligations the
holders of any such loan agreements then remaining unpaid
shall be entitled to payment before any distribution of surplus
is made to the insurer's members. [1949 c 190 § 13; 1947 c
79 § .09.33; Rem. Supp. 1949 § 45.09.33.]
48.09.340
48.09.340 Impairment of surplus. (1) If the assets of a
domestic mutual insurer on the cash premium plan fall below
the amount of its liabilities, plus the amount of any surplus
required by this code for the kinds of insurance authorized to
be transacted, the commissioner shall at once ascertain the
amount of the deficiency and serve notice upon the insurer to
cure the deficiency within ninety days after such service of
notice.
(2) If the deficiency is not made good in cash or in assets
eligible under this code for the investment of the insurer's
funds, and proof thereof filed with the commissioner within
such ninety-day period, the insurer shall be deemed insolvent
and shall be proceeded against as authorized by this code.
(3) If the deficiency is not made good the insurer shall
not issue or deliver any policy after the expiration of such
ninety-day period. Any officer or director who violates or
knowingly permits the violating of this provision shall be
subject to a fine of from fifty dollars to one thousand dollars
for each violation. [1949 c 190 § 14; 1947 c 79 § 09.34; Rem.
Supp. 1949 § 45.09.34.]
48.09.350
48.09.350 Reorganization of mutual as stock
insurer—Reinsurance—Approval. (1) Upon satisfaction
of the requirements applicable to the formation of a domestic
stock insurer, a domestic mutual insurer may be reorganized
(2004 Ed.)
Reciprocal Insurers
as a stock corporation, pursuant to a plan of reorganization as
approved by the commissioner.
(2) A domestic mutual insurer may be wholly reinsured
in and its assets transferred to and its liabilities assumed by
another mutual or stock insurer under such terms and conditions as are approved by the commissioner in advance of such
reinsurance.
(3) The commissioner shall not approve any such reorganization plan or reinsurance agreement which does not determine the amount of and make adequate provision for paying
to members of such mutual insurer, reasonable compensation
for their equities as owners of such insurer, such compensation to be apportioned to members as identified and in the
manner prescribed in RCW 48.09.360. The procedure for
approval by the commissioner of any such reorganization
plan or reinsurance agreement shall be the same as the procedure for approval by the commissioner of a plan of merger or
consolidation under RCW 48.31.010.
Approval at a corporate meeting of members by twothirds of the then members of a domestic mutual insurer who
vote on the plan or agreement pursuant to such notice and
procedure as was approved by the commissioner shall constitute approval of any such reorganization plan or reinsurance
agreement by the insurer's members. [1984 c 23 § 1; 1983 1st
ex.s. c 32 § 1; 1947 c 79 § .09.35; Rem. Supp. 1947 §
45.09.35.]
48.09.360 Distribution of assets and ownership equities upon liquidation. (1) Upon the liquidation of a domestic mutual insurer, its assets remaining after discharge of its
indebtedness and policy obligations shall be distributed to its
members who were such within the thirty-six months prior to
the last termination of its certificate of authority.
(2) Upon the reorganization of a domestic mutual insurer
as a domestic stock insurer under RCW 48.09.350(1) or upon
reinsurance of the whole of the liabilities and transfer of all
the assets of a domestic mutual insurer under RCW
48.09.350(2), the ownership equities of members of the
domestic mutual insurer shall be distributed to its members
who were such on an eligibility date stated in the reorganization plan or reinsurance agreement, or who were such within
the thirty-six months prior to such eligibility date. Such eligibility date shall be either the date on which the reorganization
plan or reinsurance agreement is adopted by resolution of the
board of directors of the domestic mutual insurer, or the date
on which the reorganization plan or reinsurance agreement is
approved by a vote of the members, or the date which ends a
calendar quarter during which either of such actions is taken.
(3) Upon the liquidation of a domestic mutual insurer,
the distributive share of each such member shall be in the
proportion that the aggregate premiums earned by the insurer
on the policies of the member during the thirty-six months
before the last termination of the insurer's certificate of
authority, bear to the aggregate of all premiums so earned on
the policies of all such members during the same thirty-six
months.
(4) Upon the reorganization of a domestic mutual insurer
as a domestic stock insurer under RCW 48.09.350(1) or upon
reinsurance of the whole of the liabilities and transfer of all
the assets of a domestic mutual insurer under RCW
48.09.350(2), the distributive share of each member entitled
48.09.360
(2004 Ed.)
48.10.020
thereto shall be in the proportion that the aggregate premiums
earned by the insurer on the policies in force of that member
during the thirty-six months before the eligibility date established under RCW 48.09.360(2) bear to the aggregate of all
premiums so earned during the same thirty-six months on all
the policies in force of all such members who are entitled to a
distributive share.
(5) If a life insurer, the insurer shall make a reasonable
classification of its life insurance policies so held by such
members entitled to a distributive share and a formula based
upon such classification for determining the equitable distributive share of each such member. Such classification and formula shall be subject to the commissioner's approval. [1984
c 23 § 2; 1947 c 79 § .09.36; Rem. Supp. 1947 § 45.09.36.]
Chapter 48.10
Chapter 48.10 RCW
RECIPROCAL INSURERS
Sections
48.10.010
48.10.020
48.10.030
48.10.050
48.10.055
48.10.060
48.10.070
48.10.080
48.10.090
48.10.100
48.10.110
48.10.120
48.10.130
48.10.140
48.10.150
48.10.160
48.10.170
48.10.180
48.10.190
48.10.200
48.10.220
48.10.230
48.10.250
48.10.260
48.10.270
48.10.280
48.10.290
48.10.300
48.10.310
48.10.320
48.10.330
48.10.340
"Reciprocal insurance" defined.
"Reciprocal insurer" defined.
Scope of chapter.
Insuring powers of reciprocals.
Real property—Attorney's duty.
Name—Suits.
Surplus funds required.
Attorney.
Organization of reciprocal.
Policies of original subscribers, effective when.
Certificate of authority.
Power of attorney.
Modification of subscriber's agreement or power of attorney.
Attorney's bond.
Deposit in lieu of bond.
Actions on bond.
Service of legal process.
Annual statement.
Attorney's contribution—Repayment.
Determination of financial condition.
Who may become subscriber.
Subscribers' advisory committee.
Assessment liability of subscriber.
Action against subscriber requires judgment against insurer.
Assessments.
Time limit for assessment.
Aggregate liability.
Nonassessable policies.
Return of savings to subscribers.
Distribution of assets upon liquidation.
Merger—Conversion to stock or mutual insurer.
Impairment of assets—Procedure.
Dividends not to be guaranteed: RCW 48.30.100.
Merger or consolidation: RCW 48.31.010.
Organization of domestic insurers: Chapter 48.06 RCW.
Policy dividends are payable to real party in interest: RCW 48.18.340.
48.10.010
48.10.010 "Reciprocal insurance" defined. "Reciprocal insurance" is that resulting from an interexchange among
persons, known as "subscribers," of reciprocal agreements of
indemnity, the interexchange being effectuated through an
"attorney in fact" common to all such persons. [1947 c 79 §
.10.01; Rem. Supp. 1947 § 45.10.01.]
48.10.020
48.10.020 "Reciprocal insurer" defined. A "reciprocal insurer" means an unincorporated aggregation of subscribers operating individually and collectively through an
attorney in fact to provide reciprocal insurance among themselves. [1947 c 79 § .10.02; Rem. Supp. 1947 § 45.10.02.]
[Title 48 RCW—page 41]
48.10.030
Title 48 RCW: Insurance
48.10.030
48.10.030 Scope of chapter. All authorized reciprocal
insurers shall be governed by those sections of this chapter
not expressly made applicable to domestic reciprocal insurers. [1947 c 79 § .10.03; Rem. Supp. 1947 § 45.10.03.]
ex.s. c 266 § 5; 1963 c 195 § 5; 1947 c 79 § .10.07; Rem.
Supp. 1947 § 45.10.07.]
Severability—1975 1st ex.s. c 266: See note following RCW
48.01.010.
48.10.080 Attorney. (1) "Attorney" as used in this
chapter refers to the attorney in fact of a reciprocal insurer.
The attorney may be an individual, firm, or corporation.
(2) The attorney of a foreign or alien reciprocal insurer,
which insurer is duly authorized to transact insurance in this
state, shall not, by virtue of discharge of its duties as such
attorney with respect to the insurer's transactions in this state,
be thereby deemed to be doing business in this state within
the meaning of any laws of this state applying to foreign persons, firms, or corporations.
(3) The subscribers and the attorney in fact comprise a
reciprocal insurer and a single entity for the purposes of chapter 48.14 RCW as to all operations under the insurer's certificate of authority. [1965 ex.s. c 70 § 35; 1947 c 79 § .10.08;
Rem. Supp. 1947 § 45.10.08.]
48.10.080
48.10.050
48.10.050 Insuring powers of reciprocals. (1) A reciprocal insurer may, upon qualifying therefor as provided by
this code, transact any kind or kinds of insurance defined by
this code, other than life or title insurances.
(2) A reciprocal insurer may purchase reinsurance upon
the risk of any subscriber, and may grant reinsurance as to
any kind of insurance which it is authorized to transact direct.
[1947 c 79 § .10.05; Rem. Supp. 1947 § 45.10.05.]
48.10.055
48.10.055 Real property—Attorney's duty. A reciprocal insurer may purchase, sell, mortgage, encumber, lease,
or otherwise affect the title to real property for the purposes
and objects of the reciprocal insurer. All deeds, notes, mortgages, or other documents relating to the real property may
be executed in the name of the reciprocal insurer by its attorney. [1991 c 266 § 1.]
48.10.060
48.10.060 Name—Suits. A reciprocal insurer shall:
(1) Have and use a business name. The name shall
include the word "reciprocal," or "interinsurer," or "interinsurance," or "exchange," or "underwriters," or "underwriting."
(2) Sue and be sued in its own name. [1947 c 79 §
.10.06; Rem. Supp. 1947 § 45.10.06.]
48.10.070
48.10.070 Surplus funds required. (1) A domestic
reciprocal insurer hereafter formed, if it has otherwise complied with the provisions of this code, may be authorized to
transact insurance if it initially possesses surplus in an
amount equal to or exceeding the capital and surplus requirements required under RCW 48.05.340(1) plus special surplus, if any, required under RCW 48.05.360 and thereafter
possesses, and maintains surplus funds equal to the paid-in
capital stock required under RCW 48.05.340 of a stock
insurer transacting like kinds of insurance, and the special
surplus, if any, required under RCW 48.05.360.
(2) A domestic reciprocal insurer which under prior laws
held authority to transact insurance in this state may continue
to be so authorized so long as it otherwise qualifies therefor
and maintains surplus funds in amount not less than as
required under laws of this state in force at the time such
authority to transact insurance in this state was granted.
(3) A domestic reciprocal insurer heretofore formed
shall maintain on deposit with the commissioner surplus
funds of not less than the sum of one hundred thousand dollars, and to transact kinds of insurance transacted by it in
addition to that authorized by its original certificate of
authority, shall have and maintain surplus (including the
amount of such deposit) in amount not less than the paid-in
capital stock required under RCW 48.05.340(1) plus special
surplus, if any, required under RCW 48.05.360, of a domestic
stock insurer formed after 1967 and transacting the same
kinds of insurance. Such additional surplus funds need not be
deposited with the commissioner. [1985 c 264 § 4; 1975 1st
[Title 48 RCW—page 42]
48.10.090 Organization of reciprocal. (1) Twentyfive or more persons domiciled in this state may organize a
domestic reciprocal insurer and in compliance with this code
make application to the commissioner for a certificate of
authority to transact insurance.
(2) When applying for a certificate of authority, the original subscribers and the proposed attorney shall fulfill the
requirements of and shall execute and file with the commissioner a declaration setting forth:
(a) the name of the insurer;
(b) the location of the insurer's principal office, which
shall be the same as that of the attorney and shall be maintained within this state;
(c) the kinds of insurance proposed to be transacted;
(d) the names and addresses of the original subscribers;
(e) the designation and appointment of the proposed
attorney and a copy of the power of attorney;
(f) the names and addresses of the officers and directors
of the attorney, if a corporation, or of its members, if a firm;
(g) the powers of the subscribers' advisory committee
and the names and terms of office of the members thereof;
(h) that all moneys paid to the reciprocal, after deducting
therefrom any sum payable to the attorney, shall be held in
the name of the insurer and for the purposes specified in the
subscriber's agreement;
(i) a copy of the subscriber's agreement;
(j) a statement that each of the original subscribers has in
good faith applied for insurance of the kind proposed to be
transacted, and that the insurer has received from each such
subscriber the full premium or premium deposit required for
the policy applied for, for a term of not less than six months
at the rate theretofore filed with and approved by the commissioner;
(k) a statement of the financial condition of the insurer, a
schedule of its assets, and a statement that the surplus as
required by RCW 48.10.070 is on hand;
(l) a copy of each policy, endorsement, and application
form it then proposes to issue or use.
Such declaration shall be acknowledged by each such
subscriber and by the attorney in the manner required for the
48.10.090
(2004 Ed.)
Reciprocal Insurers
acknowledgment of deeds to real estate. [1947 c 79 § .10.09;
Rem. Supp. 1947 § 45.10.09.]
48.10.100
48.10.100 Policies of original subscribers, effective
when. Any policy applied for by an original subscriber shall
become effective coincidentally with the issuance of a certificate of authority to the reciprocal insurer. [1947 c 79 §
.10.10; Rem. Supp. 1947 § 45.10.10.]
48.10.110
48.10.110 Certificate of authority. (1) The certificate
of authority of a reciprocal insurer shall be issued to its attorney in the name of the insurer.
(2) The commissioner may refuse, suspend, or revoke
the certificate of authority, in addition to other grounds therefor, for failure of its attorney to comply with any provision of
this code. [1947 c 79 § .10.11; Rem. Supp. 1947 § 45.10.11.]
48.10.120
48.10.120 Power of attorney. (1) The rights and powers of the attorney of a reciprocal insurer shall be as provided
in the power of attorney given it by the subscribers.
(2) The power of attorney must set forth:
(a) The powers of the attorney;
(b) that the attorney is empowered to accept service of
process on behalf of the insurer and to authorize the commissioner to receive service of process in actions against the
insurer upon contracts exchanged;
(c) the services to be performed by the attorney in general;
(d) the maximum amount to be deducted from advance
premiums or deposits to be paid to the attorney;
(e) except as to nonassessable policies, a provision for a
contingent several liability of each subscriber in a specified
amount which amount shall be not less than one nor more
than ten times the premium or premium deposit stated in the
policy.
(3) The power of attorney may:
(a) Provide for the right of substitution of the attorney
and revocation of the power of attorney and rights thereunder;
(b) impose such restrictions upon the exercise of the
power as are agreed upon by the subscribers;
(c) provide for the exercise of any right reserved to the
subscribers directly or through their advisory committee;
(d) contain other lawful provisions deemed advisable.
(4) The terms of any power of attorney or agreement collateral thereto shall be reasonable and equitable, and no such
power or agreement or any amendment thereof, shall be used
or be effective in this state until approved by the commissioner. [1949 c 190 § 15; 1947 c 79 § .10.12; Rem. Supp.
1949 § 45.10.12.]
48.10.130
48.10.130 Modification of subscriber's agreement or
power of attorney. Modification of the terms of the subscriber's agreement or of the power of attorney of a domestic
reciprocal insurer shall be made jointly by the attorney and
the subscribers' advisory committee. No such modification
shall be effective retroactively, nor as to any insurance contract issued prior thereto. [1947 c 79 § .10.13; Rem. Supp.
1947 § 45.10.13.]
(2004 Ed.)
48.10.190
48.10.140
48.10.140 Attorney's bond. (1) Concurrently with the
filing of the declaration provided for in RCW 48.10.090, (or,
if an existing domestic reciprocal insurer, within ninety days
after the effective date of this code) the attorney of a domestic
reciprocal shall file with the commissioner a bond running to
the state of Washington. The bond shall be executed by the
attorney and by an authorized corporate surety, and shall be
subject to the commissioner's approval.
(2) The bond shall be in the penal sum of twenty-five
thousand dollars, conditioned that the attorney will faithfully
account for all moneys and other property of the insurer coming into his hands, and that he will not withdraw or appropriate for his own use from the funds of the insurer any moneys
or property to which he is not entitled under the power of
attorney.
(3) The bond shall provide that it is not subject to cancellation unless thirty days advance notice in writing of intent to
cancel is given to both the attorney and the commissioner.
[1947 c 79 § .10.14; Rem. Supp. 1947 § 45.10.14.]
48.10.150
48.10.150 Deposit in lieu of bond. In lieu of such bond,
the attorney may maintain on deposit with the commissioner
a like amount in cash or in value of securities qualified under
this code as insurers' investments, and subject to the same
conditions as the bond. [1947 c 79 § .10.15; Rem. Supp.
1947 § 45.10.15.]
48.10.160
48.10.160 Actions on bond. Action on the attorney's
bond or to recover against any such deposit made in lieu
thereof may be brought at any one time by one or more subscribers suffering loss through a violation of the conditions
thereof or by a receiver or liquidator of the insurer. Amounts
so recovered shall be deposited in and become part of the
insurer's funds. [1947 c 79 § .10.16; Rem. Supp. 1947 §
45.10.16.]
48.10.170
48.10.170 Service of legal process. (1) A certificate of
authority shall not be issued to a domestic reciprocal insurer
unless prior thereto the attorney has executed and filed with
the commissioner the insurer's irrevocable authorization of
the commissioner to receive legal process issued in this state
against the insurer upon any cause of action arising within
this state.
(2) The provisions of RCW 48.05.210 shall apply to service of such process upon the commissioner.
(3) In lieu of service on the commissioner, legal process
may be served upon a domestic reciprocal insurer by serving
the insurer's attorney at his principal offices.
(4) Any judgment against the insurer based upon legal
process so served shall be binding upon each of the insurer's
subscribers as their respective interests may appear and in an
amount not exceeding their respective contingent liabilities.
[1947 c 79 § .10.17; Rem. Supp. 1947 § 45.10.17.]
48.10.180
48.10.180 Annual statement. The annual statement of
a reciprocal insurer shall be made and filed by the attorney.
[1947 c 79 § .10.18; Rem. Supp. 1947 § 45.10.18.]
48.10.190
48.10.190 Attorney's contribution—Repayment. No
contribution to a domestic reciprocal insurer's surplus by the
[Title 48 RCW—page 43]
48.10.200
Title 48 RCW: Insurance
attorney shall be retrievable by the attorney except under
such terms and in such circumstances as the commissioner
approves. [1947 c 79 § .10.19; Rem. Supp. 1947 § 45.10.19.]
48.10.200
48.10.200 Determination of financial condition. In
determining the financial condition of a reciprocal insurer the
commissioner shall apply the following rules:
(1) He shall charge as liabilities the same reserves as are
required of incorporated insurers issuing nonassessable policies on a reserve basis.
(2) The surplus deposits of subscribers shall be allowed
as assets, except that any premium deposit delinquent for
ninety days shall first be charged against such surplus
deposit.
(3) The surplus deposits of subscribers shall not be
charged as a liability.
(4) All premium deposits delinquent less than ninety
days shall be allowed as assets.
(5) An assessment levied upon subscribers, and not collected, shall not be allowed as an asset.
(6) The contingent liability of subscribers shall not be
allowed as an asset.
(7) The computation of reserves shall be based upon premium deposits other than membership fees and without any
deduction for the compensation of the attorney. [1947 c 79 §
.10.20; Rem. Supp. 1947 § 45.10.20.]
48.10.220
48.10.220 Who may become subscriber. Any person,
government or governmental agency, state or political subdivision thereof, public or private corporation, board, association, estate, trustee, or fiduciary may be a subscriber of a
reciprocal insurer. [1947 c 79 § .10.22; Rem. Supp. 1947 §
45.10.22.]
48.10.230
48.10.230 Subscribers' advisory committee. (1) The
advisory committee of a domestic reciprocal insurer exercising the subscribers' rights shall be selected under such rules
as the subscribers adopt.
(2) Not less than three-fourths of such committee shall
be composed of subscribers other than the attorney, or any
person employed by, representing, or having a financial interest in the attorney.
(3) The committee shall:
(a) Supervise the finances of the insurer;
(b) supervise the insurer's operations to such extent as to
assure their conformity with the subscribers' agreement and
power of attorney;
(c) procure the audit of the accounts and records of the
insurer and of the attorney at the expense of the insurer;
(d) have such additional powers and functions as may be
conferred by the subscribers' agreement. [1947 c 79 § .10.23;
Rem. Supp. 1947 § 45.10.23.]
48.10.250
48.10.250 Assessment liability of subscriber. (1) The
liability of each subscriber subject to assessment for the obligations of the reciprocal insurer shall not be joint, but shall be
individual and several.
(2) Each subscriber who is subject to assessment shall
have a contingent assessment liability, in the amount provided for in the power of attorney or in the subscribers' agree[Title 48 RCW—page 44]
ment, for payment of actual losses and expenses incurred
while his policy was in force. Such contingent liability may
be at the rate of not less than one nor more than ten times the
premium or premium deposit stated in the policy, and the
maximum aggregate thereof shall be computed in the manner
set forth in RCW 48.10.290.
(3) Each assessable policy issued by the insurer shall
plainly set forth a statement of the contingent liability. [1947
c 79 § .10.25; Rem. Supp. 1947 § 45.10.25.]
48.10.260
48.10.260 Action against subscriber requires judgment against insurer. (1) No action shall lie against any
subscriber upon any obligation claimed against the insurer
until a final judgment has been obtained against the insurer
and remains unsatisfied for thirty days.
(2) Any such judgment shall be binding upon each subscriber only in such proportion as his interests may appear
and in an amount not exceeding his contingent liability, if
any. [1947 c 79 § .10.26; Rem. Supp. 1947 § 45.10.26.]
48.10.270
48.10.270 Assessments. (1) Assessments may be levied
from time to time upon the subscribers of a domestic reciprocal insurer, other than as to nonassessable policies, by the
attorney upon approval in advance by the subscribers' advisory committee and the commissioner; or by the commissioner in liquidation of the insurer.
(2) Each such subscriber's share of a deficiency for
which an assessment is made, not exceeding in any event his
aggregate contingent liability as computed in accordance
with RCW 48.10.290, shall be computed by applying to the
premium earned on the subscriber's policy or policies during
the period to be covered by the assessment, the ratio of the
total deficiency to the total premiums earned during such
period upon all policies subject to the assessment.
(3) In computing the earned premiums for the purposes
of this section, the gross premium received by the insurer for
the policy shall be used as a base, deducting therefrom solely
charges not recurring upon the renewal or extension of the
policy.
(4) No subscriber shall have an offset against any assessment for which he is liable, on account of any claim for
unearned premium or losses payable. [1947 c 79 § .10.27;
Rem. Supp. 1947 § 45.10.27.]
48.10.280
48.10.280 Time limit for assessment. Every subscriber
of a domestic reciprocal insurer having contingent liability
shall be liable for, and shall pay his share of any assessment,
as computed and limited in accordance with this chapter, if:
(1) While his policy is in force or within one year after its
termination, he is notified by either the attorney or the commissioner of his intention to levy such assessment; or
(2) If an order to show cause why a receiver, conservator,
rehabilitator, or liquidator of the insurer should not be
appointed is issued pursuant to RCW 48.31.190 while his
policy is in force or within one year after its termination.
[1947 c 79 § .10.28; Rem. Supp. 1947 § 45.10.28.]
48.10.290
48.10.290 Aggregate liability. No one policy or subscriber as to such policy, shall be assessed or be charged with
an aggregate of contingent liability as to obligations incurred
(2004 Ed.)
Insuring Powers
by a domestic reciprocal insurer in any one calendar year, in
excess of the number of times the premium as stated in the
policy as computed solely upon premium earned on such policy during that year. [1947 c 79 § .10.29; Rem. Supp. 1947 §
45.10.29.]
48.10.300
48.10.300 Nonassessable policies. (1) Subject to the
special surplus requirements of RCW 48.05.360, if a reciprocal insurer has a surplus of assets over all liabilities at least
equal to the minimum capital stock required of a domestic
stock insurer authorized to transact like kinds of insurance,
upon application of the attorney and as approved by the subscribers' advisory committee the commissioner shall issue his
certificate authorizing the insurer to extinguish the contingent
liability of subscribers under its policies then in force in this
state, and to omit provisions imposing contingent liability in
all policies delivered or issued for delivery in this state for so
long as all such surplus remains unimpaired.
(2) Upon impairment of such surplus, the commissioner
shall forthwith revoke the certificate. No policy shall thereafter be issued or renewed without providing for the contingent
assessment liability of subscribers.
(3) The commissioner shall not authorize a domestic
reciprocal insurer so to extinguish the contingent liability of
any of its subscribers or in any of its policies to be issued,
unless it qualifies to and does extinguish such liability of all
its subscribers and in all such policies for all kinds of insurance transacted by it. Except, that if required by the laws of
another state in which the insurer is transacting insurance as
an authorized insurer, the insurer may issue policies providing for the contingent liability of such of its subscribers as
may acquire such policies in such state, and need not extinguish the contingent liability applicable to policies theretofore in force in such state. [1983 c 3 § 148; 1947 c 79 §
.10.30; Rem. Supp. 1947 § 45.10.30.]
48.10.310
48.10.310 Return of savings to subscribers. A reciprocal insurer may from time to time return to its subscribers
any savings or credits accruing to their accounts. Any such
distribution shall not unfairly discriminate between classes of
risks, or policies, or between subscribers. [1947 c 79 §
.10.31; Rem. Supp. 1947 § 45.10.31.]
48.10.320
48.10.320 Distribution of assets upon liquidation.
Upon the liquidation of a domestic reciprocal insurer, its
assets remaining after discharge of its indebtedness and policy obligations, the return of any contribution of the attorney
to its surplus made as provided in RCW 48.10.190, and the
return of any unused deposits, savings, or credits, shall be
distributed to its subscribers who were such within the twelve
months prior to the last termination of its certificate of
authority according to such formula as may have been
approved by the commissioner. [1947 c 79 § .10.32; Rem.
Supp. 1947 § 45.10.32.]
48.10.330
48.10.330 Merger—Conversion to stock or mutual
insurer. (1) A domestic reciprocal insurer, upon affirmative
vote of not less than two-thirds of the subscribers who vote
upon such merger pursuant to such notice as may be
approved by the commissioner and with the approval of the
(2004 Ed.)
48.11.020
commissioner of the terms therefor, may merge with another
reciprocal insurer or be converted to a stock or mutual
insurer.
(2) Such a stock or mutual insurer shall be subject to the
same capital requirements and shall have the same rights as a
like domestic insurer transacting like kinds of insurance.
(3) The commissioner shall not approve any plan for
such merger or conversion which is inequitable to subscribers, or which, if for conversion to a stock insurer, does not
give each subscriber preferential right to acquire stock of the
proposed insurer proportionate to his interest in the reciprocal
insurer as determined in accordance with RCW 48.10.320
and a reasonable length of time within which to exercise such
right. [1947 c 79 § .10.33; Rem. Supp. 1947 § 45.10.33.]
48.10.340
48.10.340 Impairment of assets—Procedure. (1) If
the assets of a domestic reciprocal insurer are at any time
insufficient to discharge its liabilities other than any liability
on account of funds contributed by the attorney, and to maintain the surplus required for the kinds of insurance it is authorized to transact, its attorney shall forthwith levy an assessment upon subscribers made subject to assessment by the
terms of their policies for the amount needed to make up the
deficiency.
(2) If the attorney fails to make the assessment within
thirty days after the commissioner orders him to do so, or if
the deficiency is not fully made up within sixty days after the
date the assessment was made, the insurer shall be deemed
insolvent and shall be proceeded against as authorized by this
code.
(3) If liquidation of such an insurer is ordered, an assessment shall be levied upon the subscribers for such an amount,
subject to limits as provided by this chapter, as the commissioner determines to be necessary to discharge all liabilities
of the insurer, exclusive of any funds contributed by the attorney, but including the reasonable cost of the liquidation.
[1947 c 79 § .10.34; Rem. Supp. 1947 § 45.10.34.]
Chapter 48.11
Chapter 48.11 RCW
INSURING POWERS
Sections
48.11.020
48.11.030
48.11.040
48.11.050
48.11.060
48.11.070
48.11.080
48.11.100
48.11.130
48.11.140
"Life insurance" defined.
"Disability insurance" defined—"Stop loss insurance"
defined.
"Property insurance" defined.
"Marine and transportation insurance" defined.
"Vehicle insurance" defined.
"General casualty insurance" defined.
"Surety insurance" defined.
"Title insurance" defined.
Reinsurance powers.
Limitation of single risk.
Workers' compensation: Title 51 RCW.
48.11.020
48.11.020 "Life insurance" defined. "Life insurance"
is insurance on human lives and insurances appertaining
thereto or connected therewith. For the purposes of this code
the transacting of life insurance includes the granting of
annuities and endowment benefits; additional benefits in
event of death by accident; additional benefits in event of the
total and permanent disability of the insured; and optional
[Title 48 RCW—page 45]
48.11.030
Title 48 RCW: Insurance
modes of settlement of proceeds. [1947 c 79 § .11.02; Rem.
Supp. 1947 § 45.11.02.]
injury, illness or death or for loss of or damage to the property
of another person. [1947 c 79 § .11.05; Rem. Supp. 1947 §
45.11.05.]
48.11.030
48.11.030 "Disability insurance" defined—"Stop
loss insurance" defined. "Disability insurance" is insurance
against bodily injury, disablement or death by accident,
against disablement resulting from sickness, and every insurance appertaining thereto including stop loss insurance. "Stop
loss insurance" is insurance against the risk of economic loss
assumed under a self-funded employee disability benefit
plan. [1992 c 226 § 1; 1947 c 79 § .11.03; Rem. Supp. 1947
§ 45.11.03.]
Application—1992 c 226: "This act applies to policies issued or
renewed on or after July 1, 1992." [1992 c 226 § 4.]
48.11.040
48.11.040 "Property insurance" defined. "Property
insurance" is insurance against loss of or damage to real or
personal property of every kind and any interest therein, from
any or all hazard or cause, and against loss consequential
upon such loss or damage. [1947 c 79 § .11.04; Rem. Supp.
1947 § 45.11.04.]
48.11.050
48.11.050 "Marine and transportation insurance"
defined. "Marine and transportation insurance" is:
(1) Insurance against loss of or damage to:
(a) Vessels, craft, aircraft, vehicles, goods, freights, cargoes, merchandise, effects, disbursements, profits, moneys,
securities, choses in action, evidences of debt, valuable
papers, bottomry, and respondentia interests and all other
kinds of property and interests therein, in respect to, appertaining to or in connection with any and all risks or perils of
navigation, transit or transportation, or while being assembled, packed, crated, baled, compressed or similarly prepared
for shipment or while awaiting shipment, or during any
delays, storage, transshipment, or reshipment incident
thereto, including war risks, marine builder's risks, and all
personal property floater risks.
(b) Person or property in connection with or appertaining
to a marine, transit or transportation insurance, including liability for loss of or damage to either incident to the construction, repair, operation, maintenance or use of the subject matter of such insurance (but not including life insurance or
surety bonds nor insurance against loss by reason of bodily
injury to any person arising out of the ownership, maintenance, or use of automobiles).
(c) Precious stones, jewels, jewelry, precious metals,
whether in course of transportation or otherwise.
(d) Bridges, tunnels and other instrumentalities of transportation and communication (excluding buildings, their furniture and furnishings, fixed contents and supplies held in
storage); piers, wharves, docks and slips, and other aids to
navigation and transportation, including dry docks and
marine railways, dams and appurtenant facilities for the control of waterways.
(2) "Marine protection and indemnity insurance," meaning insurance against, or against legal liability of the insured
for, loss, damage, or expense incident to ownership, operation, chartering, maintenance, use, repair or construction of
any vessel, craft or instrumentality in use in ocean or inland
waterways, including liability of the insured for personal
[Title 48 RCW—page 46]
48.11.060 "Vehicle insurance" defined. (1) "Vehicle
insurance" is insurance against loss or damage to any land
vehicle or aircraft or any draft or riding animal or to property
while contained therein or thereon or being loaded or
unloaded therein or therefrom, and against any loss or liability resulting from or incident to ownership, maintenance, or
use of any such vehicle or aircraft or animal.
(2) Insurance against accidental death or accidental
injury to individuals while in, entering, alighting from,
adjusting, repairing, cranking, or caused by being struck by a
vehicle, aircraft, or draft or riding animal, if such insurance is
issued as part of insurance on the vehicle, aircraft, or draft or
riding animal, shall be deemed to be vehicle insurance. [1947
c 79 § .11.06; Rem. Supp. 1947 § 45.11.06.]
48.11.060
48.11.070 "General casualty insurance" defined.
"General casualty insurance" includes vehicle insurance as
defined in RCW 48.11.060, and in addition is insurance:
(1) Against legal liability for the death, injury, or disability of any human being, or for damage to property.
(2) Of medical, hospital, surgical and funeral benefits to
persons injured, irrespective of legal liability of the insured,
when issued with or supplemental to insurance against legal
liability for the death, injury or disability of human beings.
(3) Of the obligations accepted by, imposed upon, or
assumed by employers under law for workers' compensation.
(4) Against loss or damage by burglary, theft, larceny,
robbery, forgery, fraud, vandalism, malicious mischief, confiscation or wrongful conversion, disposal or concealment, or
from any attempt of any of the foregoing; also insurance
against loss of or damage to moneys, coins, bullion, securities, notes, drafts, acceptances or any other valuable papers or
documents, resulting from any cause, except while in the custody or possession of and being transported by any carrier for
hire or in the mail.
(5) Upon personal effects against loss or damage from
any cause.
(6) Against loss or damage to glass, including its lettering, ornamentation and fittings.
(7) Against any liability and loss or damage to property
resulting from accidents to or explosions of boilers, pipes,
pressure containers, machinery, or apparatus and to make
inspection of and issue certificates of inspection upon elevators, boilers, machinery, and apparatus of any kind.
(8) Against loss or damage to any property caused by the
breakage or leakage of sprinklers, water pipes and containers,
or by water entering through leaks or openings in buildings.
(9) Against loss or damage resulting from failure of debtors to pay their obligations to the insured (credit insurance).
(10) Against any other kind of loss, damage, or liability
properly the subject of insurance and not within any other
kind or kinds of insurance as defined in this chapter, if such
insurance is not contrary to law or public policy. [1987 c 185
§ 18; 1953 c 197 § 5; 1947 c 79 § .11.07; Rem. Supp. 1947 §
45.11.07.]
48.11.070
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
(2004 Ed.)
Assets and Liabilities
48.11.080
48.11.080 "Surety insurance" defined. "Surety insurance" includes:
(1) Credit insurance as defined in subdivision (9) of
RCW 48.11.070.
(2) Bail bond insurance.
(3) Fidelity insurance, which is insurance guaranteeing
the fidelity of persons holding positions of public or private
trust.
(4) Guaranteeing the performance of contracts, other
than insurance policies, and guaranteeing and executing
bonds, undertakings, and contracts of suretyship.
(5) Indemnifying banks, bankers, brokers, financial or
moneyed corporations or associations against loss resulting
from any cause of bills of exchange, notes, bonds, securities,
evidence of debts, deeds, mortgages, warehouse receipts, or
other valuable papers, documents, money, precious metals
and articles made therefrom, jewelry, watches, necklaces,
bracelets, gems, precious and semi-precious stones, including
any loss while the same are being transported in armored
motor vehicles, or by messenger, but not including any other
risks of transportation or navigation; also against loss or damage to such an insured's premises, or to his furnishings, fixtures, equipment, safes and vaults therein, caused by burglary, robbery, theft, vandalism or malicious mischief, or any
attempt thereat. [1967 c 150 § 8; 1947 c 79 § .11.08; Rem.
Supp. 1947 § 45.11.08.]
48.11.100
48.11.100 "Title insurance" defined. "Title insurance" is insurance of owners of property or others having an
interest therein, against loss by encumbrance, or defective
titles, or adverse claim to title, and services connected therewith. [1947 c 79 § .11.10; Rem. Supp. 1947 § 45.11.10.]
48.12.010
*Reviser's note: RCW 48.05.300 was repealed by 1997 c 379 § 10.
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
Chapter 48.12
Chapter 48.12 RCW
ASSETS AND LIABILITIES
Sections
48.12.010
48.12.020
48.12.030
48.12.040
48.12.050
48.12.060
48.12.070
48.12.080
48.12.090
48.12.100
48.12.110
48.12.120
48.12.130
48.12.140
48.12.154
48.12.156
48.12.158
48.12.160
48.12.162
48.12.164
48.12.166
48.12.168
48.12.170
48.12.180
48.12.190
48.12.200
"Assets" defined.
Nonallowable assets.
Liabilities.
Unearned premium reserve, property, casualty, and surety
insurance.
Unearned premium reserve, marine and transportation insurance.
Reserve—Disability insurance.
Loss records.
Increased reserves.
Loss reserves—Liability insurance.
Unallocated liability loss expense.
Schedule of experience.
Loss reserve—Workers' compensation insurance.
Unallocated workers' compensation loss expense.
"Loss payments," "loss expense" defined.
Rules.
Qualified United States financial institution—Definition.
Insolvency of non-United States insurer or reinsurer—Maintenance of assets—Claims.
Credit for reinsurance—Trust fund—Regulatory oversight.
Credit for reinsurance—Contract provisions—After December 31, 1996—Payment—Rights of original insured or policyholder.
Credit for reinsurance—Accounting or financial statement—
After December 31, 1996.
Assuming alien reinsurer—Registration—Requirements—
Duties of commissioner—Costs.
Credit for reinsurance—Foreign ceding insurer.
Valuation of bonds.
Valuation of stocks.
Valuation of property.
Valuation of purchase money mortgages.
48.11.130
48.11.130 Reinsurance powers. A domestic mutual
assessment insurer shall not have authority to accept reinsurance. Any other domestic insurer may accept reinsurance
only of such kinds of insurance as it is authorized to transact
direct. [1947 c 79 § .11.13; Rem. Supp. 1947 § 45.11.13.]
48.11.140
48.11.140 Limitation of single risk. (1) No insurer
shall retain any risk on any one subject of insurance, whether
located or to be performed in this state or elsewhere, in an
amount exceeding ten percent of its surplus to policyholders.
(2) For the purposes of this section, a "subject of insurance" as to insurance against fire includes all properties
insured by the same insurer which are reasonably subject to
loss or damage from the same fire.
(3) Reinsurance in an alien reinsurer not qualified under
*RCW 48.05.300 may not be deducted in determining risk
retained for the purposes of this section.
(4) In the case of surety insurance, the net retention shall
be computed after deduction of reinsurances, the amount
assumed by any co-surety, the value of any security deposited, pledged, or held subject to the consent of the surety and
for the protection of the surety.
(5) This section does not apply to life insurance, disability insurance, title insurance, or insurance of marine risks or
marine protection and indemnity risks. [1993 c 462 § 53;
1983 c 3 § 149; 1959 c 225 § 2; 1947 c 79 § .11.14; Rem.
Supp. 1947 § 45.11.14.]
(2004 Ed.)
48.12.010
48.12.010 "Assets" defined. In any determination of
the financial condition of any insurer there shall be allowed
as assets only such assets as belong wholly and exclusively to
the insurer, which are registered, recorded, or held under the
insurer's name, and which consist of:
(1) Cash in the possession of the insurer or in transit
under its control, and the true balance of any deposit of the
insurer in a solvent bank or trust company;
(2) Investments, securities, properties, and loans
acquired or held in accordance with this code, and in connection therewith the following items:
(a) Interest due or accrued on any bond or evidence of
indebtedness which is not in default and which is not valued
on a basis including accrued interest.
(b) Declared and unpaid dividends on stocks and shares
unless such amount has otherwise been allowed as an asset.
(c) Interest due or accrued upon a collateral loan in an
amount not to exceed one year's interest thereon.
(d) Interest due or accrued on deposits in solvent banks
and trust companies, and interest due or accrued on other
assets if such interest is in the judgment of the commissioner
a collectible asset.
(e) Interest due or accrued on a mortgage loan, in amount
not exceeding in any event the amount, if any, of the difference between the unpaid principal and the value of the property less delinquent taxes thereon; but if any interest on the
loan is in default more than eighteen months, or if any interest
[Title 48 RCW—page 47]
48.12.020
Title 48 RCW: Insurance
on the loan is in default and any taxes or any installment
thereof on the property are and have been due and unpaid for
more than eighteen months, no allowance shall be made for
any interest on the loan.
(f) Rent due or accrued on real property if such rent is not
in arrears for more than three months.
(3) Premium notes, policy loans, and other policy assets
and liens on policies of life insurance, in amount not exceeding the legal reserve and other policy liabilities carried on
each individual policy;
(4) The net amount of uncollected and deferred premiums in the case of a life insurer which carries the full annual
mean tabular reserve liability;
(5) Premiums in the course of collection, other than for
life insurance, not more than ninety days past due, less commissions payable thereon. The foregoing limitation shall not
apply to premiums payable directly or indirectly by the
United States government or any of its instrumentalities;
(6) Installment premiums other than life insurance premiums, in accordance with regulations prescribed by the
commissioner consistent with practice formulated or adopted
by the National Association of Insurance Commissioners;
(7) Notes and like written obligations not past due, taken
for premiums other than life insurance premiums, on policies
permitted to be issued on such basis, to the extent of the
unearned premium reserves carried thereon and unless otherwise required by regulation prescribed by the commissioner;
(8) Reinsurance recoverable subject to RCW 48.12.160;
(9) Amounts receivable by an assuming insurer representing funds withheld by a solvent ceding insurer under a
reinsurance treaty;
(10) Deposits or equities recoverable from underwriting
associations, syndicates and reinsurance funds, or from any
suspended banking institution, to the extent deemed by the
commissioner available for the payment of losses and claims
and at values to be determined by him;
(11) Electronic and mechanical machines constituting a
data processing and accounting system if the cost of such system is at least twenty-five thousand dollars, which cost shall
be amortized in full over a period not to exceed ten calendar
years; and
(12) Other assets, not inconsistent with the foregoing
provisions, deemed by the commissioner available for the
payment of losses and claims, at values to be determined by
him. [1977 ex.s. c 180 § 2; 1963 c 195 § 11; 1947 c 79 §
.12.01; Rem. Supp. 1947 § 45.12.01.]
48.12.020
48.12.020 Nonallowable assets. In addition to assets
impliedly excluded under RCW 48.12.010, the following
expressly shall not be allowed as assets in any determination
of the financial condition of an insurer:
(1) Goodwill, except in accordance with regulations prescribed by the commissioner, trade names, agency plants and
other like intangible assets.
(2) Prepaid or deferred charges for expenses and commissions paid by the insurer.
(3) Advances to officers (other than policy loans or loans
made pursuant to RCW 48.07.130), whether secured or not,
and advances to employees, agents and other persons on personal security only.
[Title 48 RCW—page 48]
(4) Stock of such insurer, owned by it, or any equity
therein or loans secured thereby, or any proportionate interest
in such stock through the ownership by such insurer of an
interest in another firm, corporation or business unit.
(5) Furniture, furnishings, fixtures, safes, equipment,
vehicles, library, stationery, literature, and supplies; except,
electronic and mechanical machines authorized by subsection (11) of RCW 48.12.010, or such personal property as the
insurer is permitted to hold pursuant to paragraph (e) of subsection (2) of RCW 48.13.160, or which is acquired through
foreclosure of chattel mortgages acquired pursuant to RCW
48.13.150, or which is reasonably necessary for the maintenance and operation of real estate lawfully acquired and held
by the insurer other than real estate used by it for home office,
branch office, and similar purposes.
(6) The amount, if any, by which the aggregate book
value of investments as carried in the ledger assets of the
insurer exceeds the aggregate value thereof as determined
under this code. [1982 c 218 § 1; 1963 c 195 § 12; 1947 c 79
§ .12.02; Rem. Supp. 1947 § 45.12.02.]
Severability—1982 c 218: "If any provision of this amendatory act or
its application to any person or circumstance is held invalid, the remainder of
the act or the application of the provision to other persons or circumstances
is not affected." [1982 c 218 § 7.]
48.12.030
48.12.030 Liabilities. In any determination of the
financial condition of an insurer, liabilities to be charged
against its assets shall include:
(1) The amount of its capital stock outstanding, if any;
and
(2) The amount, estimated consistent with the provisions
of this chapter, necessary to pay all of its unpaid losses and
claims incurred on or prior to the date of statement, whether
reported or unreported, together with the expense of adjustment or settlement thereof; and
(3) With reference to life and disability insurance, and
annuity contracts,
(a) the amount of reserves on life insurance policies and
annuity contracts in force (including disability benefits for
both active and disabled lives, and accidental death benefits,
in or supplementary thereto) and disability insurance, valued
according to the tables of mortality, tables of morbidity, rates
of interest, and methods adopted pursuant to this chapter
which are applicable thereto; and
(b) any additional reserves which may be required by the
commissioner, consistent with practice formulated or
approved by the National Association of Insurance Commissioners, on account of such insurances; and
(4) With reference to insurances other than those specified in subdivision (3) of this section, and other than title
insurance, the amount of reserves equal to the unearned portions of the gross premiums charged on policies in force,
computed in accordance with this chapter; and
(5) Taxes, expenses, and other obligations accrued at the
date of the statement; and
(6) Any additional reserve set up by the insurer for a specific liability purpose or required by the commissioner consistent with practices adopted or approved by the National
Association of Insurance Commissioners. [1973 1st ex.s. c
162 § 1; 1947 c 79 § .12.03; Rem. Supp. 1947 § 45.12.03.]
(2004 Ed.)
Assets and Liabilities
48.12.040
48.12.040 Unearned premium reserve, property,
casualty, and surety insurance. (1) With reference to insurances against loss or damage to property, except as provided
in RCW 48.12.050, and with reference to all general casualty
insurances, and surety insurances, every insurer shall maintain an unearned premium reserve on all policies in force.
(2) The commissioner may require that such reserve
shall be equal to the unearned portions of the gross premiums
in force after deducting authorized reinsurance, as computed
on each respective risk from the policy's date of issue. If the
commissioner does not so require, the portions of the gross
premiums in force, less authorized reinsurance, to be held as
a premium reserve, shall be computed according to the following table:
Term for which policy
was written
One year, or less . . . . . . .
Two years . . . . . . . . . . . .
Three years . . . . . . . . . . .
Four years . . . . . . . . . . . .
Five years . . . . . . . . . . . .
Over five years . . . . . . . .
Reserve for
unearned premium
First year
Second year
First year
Second year
Third year
First year
Second year
Third year
Fourth year
First year
Second year
Third year
Fourth year
Fifth year
Pro rata
1/2
3/4
1/4
5/6
1/2
1/6
7/8
5/8
3/8
1/8
9/10
7/10
1/2
3/10
1/10
(3) In lieu of computation according to such table, all of
such reserves may be computed, at the insurer's option, on a
monthly pro rata basis.
(4) After adopting any one of the methods for computing
such reserve an insurer shall not change methods without the
commissioner's approval.
(5) If, for certain policies, the insurer's exposure to loss is
uneven over the policy term, the commissioner may grant
permission to the insurer to use a different method of calculating the unearned premium reserve on those certain policies. [1995 c 35 § 1; 1973 1st ex.s. c 162 § 2; 1947 c 79 §
.12.04; Rem. Supp. 1947 § 45.12.04.]
48.12.050
48.12.050 Unearned premium reserve, marine and
transportation insurance. With reference to marine and
transportation insurances, premiums on trip risks not terminated shall be deemed unearned and the commissioner may
require the insurer to carry a reserve thereon equal to one
hundred percent on trip risks written during the month ended
as of the date of statement; and computed upon a pro rata
basis or, with the commissioner's consent, in accordance with
the alternative methods provided in RCW 48.12.040 for all
other risks. [1947 c 79 § .12.05; Rem. Supp. 1947 §
45.12.05.]
48.12.060
48.12.060 Reserve—Disability insurance. For all disability insurance policies the insurer shall maintain an active
(2004 Ed.)
48.12.100
life reserve which shall place a sound value on its liabilities
under such policies and be not less than the reserve according
to appropriate standards set forth in regulations issued by the
commissioner and, in no event, less in the aggregate than the
pro rata gross unearned premiums for such policies. [1973
1st ex.s. c 162 § 3; 1947 c 79 § .12.06; Rem. Supp. 1947 §
45.12.06.]
48.12.070
48.12.070 Loss records. An insurer shall maintain a
complete and itemized record showing all losses and claims
as to which it has received notice, including with regard to
property, casualty, surety, and marine and transportation
insurances, all notices received of the occurrence of any
event which may result in a loss. [1947 c 79 § .12.07; Rem.
Supp. 1947 § 45.12.07.]
48.12.080
48.12.080 Increased reserves. (1) If the commissioner
determines that an insurer's unearned premium reserves,
however computed, are inadequate, he may require the
insurer to compute such reserves or any part thereof according to such other method or methods as are prescribed in this
chapter.
(2) If the loss experience of an insurer shows that its loss
reserves, however estimated, are inadequate, the commissioner shall require the insurer to maintain loss reserves in
such increased amount as is needed to make them adequate.
[1947 c 79 § .12.08; Rem. Supp. 1947 § 45.12.08.]
48.12.090
48.12.090 Loss reserves—Liability insurance. The
reserves for outstanding losses and loss expenses under policies of personal injury liability insurance and under policies
of employer's liability insurance shall be computed as follows:
(1) The reserves for outstanding losses and loss expenses
under policies of personal injury liability insurance and under
policies of employer's liability insurance shall be computed
in accordance with accepted loss-reserving standards and
principles and shall make a reasonable provision for all
unpaid loss and loss expense obligations of the insurer under
the terms of such policies.
(2) Reserves under liability policies written during the
three years immediately preceding the date of determination
shall include any additional reserves required by the annual
statement instructions of the national association of insurance
commissioners. [1995 c 35 § 2; 1947 c 79 § .12.09; Rem.
Supp. 1947 § 45.12.09.]
48.12.100
48.12.100 Unallocated liability loss expense. Subject
to any restrictions contained in the annual statement instructions or accounting practices and procedures manuals of the
national association of insurance commissioners, all unallocated liability loss expense payments shall be distributed as
follows:
(1) All payments associated with particular claims shall
be distributed to the year in which the claim was covered; and
(2) All other payments shall be distributed by year in a
reasonable manner. [1995 c 35 § 3; 1947 c 79 § .12.10; Rem.
Supp. 1947 § 45.12.10.]
[Title 48 RCW—page 49]
48.12.110
Title 48 RCW: Insurance
48.12.110
48.12.110 Schedule of experience. Any insurer transacting any liability or workers' compensation insurances shall
include in its annual statement filed with the commissioner, a
schedule of its experience thereunder in such form as the
commissioner may prescribe. [1987 c 185 § 19; 1947 c 79 §
.12.11; Rem. Supp. 1947 § 45.12.11.]
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
48.12.120
48.12.120 Loss reserve—Workers' compensation
insurance. The loss reserve for workers' compensation
insurance shall be as follows:
(1) For all compensation claims under policies of compensation insurance written more than three years prior to the
date of determination, the loss reserve shall be not less than
the present values at four percent interest of the determined
and the estimated future payments.
(2) For all compensation claims under policies of compensation insurance written in the three years immediately
preceding the date of determination, the loss reserve shall be
not less than the present value at three and one-half percent
interest of the determined and the estimated future payments,
and shall include any additional reserves required by the
annual statement instructions of the national association of
insurance commissioners. [1995 c 35 § 4; 1987 c 185 § 20;
1947 c 79 § .12.12; Rem. Supp. 1947 § 45.12.12.]
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
48.12.130
48.12.130 Unallocated workers' compensation loss
expense. Subject to any restrictions contained in the annual
statement instructions or accounting practices and procedures
manuals of the national association of insurance commissioners, all unallocated workers' compensation loss expense payments shall be distributed as follows:
(1) All payments associated with particular claims shall
be distributed to the year in which the claim was covered; and
(2) All other payments shall be distributed by year in a
reasonable manner. [1995 c 35 § 5; 1987 c 185 § 21; 1947 c
79 § .12.13; Rem. Supp. 1947 § 45.12.13.]
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
48.12.140
48.12.140 "Loss payments," "loss expense" defined.
"Loss payments" and "loss expense payments" as used with
reference to liability and workers' compensation insurances
shall include all payments to claimants, payments for medical
and surgical attendance, legal expenses, salaries and
expenses of investigators, adjusters and claims field men,
rents, stationery, telegraph and telephone charges, postage,
salaries and expenses of office employees, home office
expenses and all other payments made on account of claims,
whether such payments are allocated to specific claims or are
unallocated. [1987 c 185 § 22; 1947 c 79 § .12.14; Rem.
Supp. 1947 § 45.12.14.]
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
48.12.154
48.12.154 Rules. The commissioner may adopt rules to
implement and administer chapter 379, Laws of 1997. [1997
c 379 § 9.]
[Title 48 RCW—page 50]
Purpose—Intent—1997 c 379: See note following RCW 48.12.156.
48.12.156
48.12.156 Qualified United States financial institution—Definition. For purposes of chapter 379, Laws of
1997, a "qualified United States financial institution" means
an institution that complies with all of the following:
(1) Is organized or, in the case of a United States office
of a foreign banking organization, licensed under the laws of
the United States or any state thereof;
(2) Is regulated, supervised, and examined by United
States federal or state authorities having regulatory authority
over banks and trust companies;
(3) Has been determined by the commissioner, or, in the
discretion of the commissioner, the securities valuation office
of the national association of insurance commissioners, to
meet such standards of financial condition and standing as
are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be
acceptable to the commissioner; and
(4) Is not affiliated with the assuming company. [1997 c
379 § 2.]
Purpose—Intent—1997 c 379: "(1) The purpose of this act is to protect the interest of insureds, claimants, ceding insurers, assuming insurers,
and the public generally.
(2) It is the intent of the legislature to ensure adequate regulation of
insurers and reinsurers and adequate protection for those to whom they owe
obligations.
(3) It is also the intent of the legislature to declare that the matters contained in this act are fundamental to the business of insurance and to exercise
its powers and privileges under 15 U.S.C. Secs. 1011 and 1012." [1997 c
379 § 1.]
48.12.158
48.12.158 Insolvency of non-United States insurer or
reinsurer—Maintenance of assets—Claims. Upon insolvency of a non-United States insurer or reinsurer that provides security to fund its United States obligations in accordance with chapter 379, Laws of 1997, the assets representing the security must be maintained in the United States and
claims must be filed with and valued by the state insurance
commissioner with regulatory oversight, and the assets distributed, in accordance with the insurance laws of the state in
which the trust is domiciled that are applicable to the liquidation of domestic United States insurance companies. [1997 c
379 § 3.]
Purpose—Intent—1997 c 379: See note following RCW 48.12.156.
48.12.160
48.12.160 Credit for reinsurance—Trust fund—Regulatory oversight. (1) Any insurance company organized
under the laws of this state may take credit as an asset or as a
deduction from loss or claim, unearned premium, or life policy or contract reserves on risks ceded to a reinsurer to the
extent reinsured by an insurer or insurers holding a certificate
of authority to transact that kind of business in this state,
unless the assuming insurer is the subject of a regulatory
order or regulatory oversight by a state in which it is licensed
based upon a commissioner's determination that the assuming insurer is in a hazardous financial condition. The credit
on ceded risks reinsured by any insurer which is not authorized to transact business in this state may be taken:
(a) Where the reinsurer is a group including incorporated
and unincorporated underwriters, and the group maintains a
(2004 Ed.)
Assets and Liabilities
trust fund in a qualified United States financial institution
which trust fund must be in an amount equal to:
(i) For reinsurance ceded under reinsurance agreements
with an inception, amendment, or renewal date on or after
August 1, 1995, funds in trust in an amount not less than the
group's several liabilities attributable to business ceded by
United States domiciled insurers to any member of the group;
or
(ii) For reinsurance ceded under reinsurance agreements
with an inception date on or before July 31, 1995, and not
amended or renewed after that date, notwithstanding the
other provisions of chapter 379, Laws of 1997, funds in trust
in an amount not less than the group's several insurance and
reinsurance liabilities attributable to business written in the
United States.
In addition, the group shall maintain a trusteed surplus of
which one hundred million dollars shall be held jointly and
exclusively for the benefit of United States ceding insurers of
any member of the group.
The incorporated members of the group shall not be
engaged in any business other than underwriting as a member
of the group and shall be subject to the same level of solvency
regulation and control by the group's domiciliary regulator as
are the unincorporated members; and the group shall make
available to the commissioner an annual certification of the
solvency of each underwriter by the group's domiciliary regulator and its independent public accountants;
(b) Where the reinsurer does not meet the definition of
(a) of this subsection, the single assuming alien reinsurer that,
as of the date of the ceding insurer's statutory financial statement, maintains a trust fund in a qualified United States
financial institution, which trust fund must be in an amount
not less than the assuming alien reinsurer's liabilities attributable to reinsurance ceded by United States domiciled insurers, and in addition, the assuming insurer shall maintain a
trusteed surplus of not less than twenty million dollars, and
the assuming alien reinsurer maintaining the trust fund must
have received a registration from the commissioner under
RCW 48.12.166. The assuming alien reinsurer shall report on
or before February 28th to the commissioner substantially the
same information as that required to be reported on the
national association of insurance commissioners annual
statement form by licensed insurers, to enable the commissioner to determine the sufficiency of the trust fund;
(c) In an amount not exceeding:
(i) The amount of deposits by and funds withheld from
the assuming insurer pursuant to express provision therefor in
the reinsurance contract, as security for the payment of the
obligations thereunder, if the deposits or funds are assets of
the types and amounts that are authorized under chapter
48.13 RCW and are held subject to withdrawal by and under
the control of the ceding insurer or if the deposits or funds are
placed in trust for these purposes in a bank which is a member
of the federal reserve system and withdrawals from the trust
cannot be made without the consent of the ceding company;
or
(ii) The amount of a clean, irrevocable, and unconditional letter of credit issued by a United States bank that is
determined by the national association of insurance commissioners to meet credit standards for issuing letters of credit in
connection with reinsurance, and issued for a term of at least
(2004 Ed.)
48.12.160
one year with provisions that it must be renewed unless the
bank gives notice of nonrenewal at least thirty days before the
expiration issued under arrangements satisfactory to the commissioner of insurance as constituting security to the ceding
insurer substantially equal to that of a deposit under (c)(i) of
this subsection.
(2) Credit for reinsurance may not be granted under subsection (1)(a), (b), and (c)(i) of this section unless:
(a) The form of the trust and amendments to the trust
have been approved by the insurance commissioner of the
state where the trust is located, or the insurance commissioner of another state who, pursuant to the terms of the trust
agreement, has accepted principal regulatory oversight of the
trust;
(b) The trust and trust amendments are filed with the
commissioner of every state in which the ceding insurer beneficiaries of the trust are domiciled;
(c) The trust instrument provides that contested claims
are valid, enforceable, and payable out of funds in trust to the
extent remaining unsatisfied thirty days after entry of the
final order of a court of competent jurisdiction in the United
States;
(d) The trust vests legal title to its assets in the trustees of
the trust for the benefit of the grantor's United States ceding
insurers, their assigns, and successors in interest;
(e) The trust and the assuming insurer are subject to
examination as determined by the commissioner;
(f) The trust shall remain in effect for as long as the
assuming insurer, member, or former member of a group of
insurers has outstanding obligations due under the reinsurance agreements subject to the trust; and
(g) No later then [than] February 28th of each year, the
trustees of the trust report to the commissioner in writing setting forth the balance of the trust and listing the trust's investments at the preceding year end. In addition, the trustees of
the trust shall certify the date of termination of the trust, if so
planned, or certify that the trust shall not expire within the
next twelve months.
(3) Any reinsurance ceded by a company organized
under the laws of this state or ceded by any company not
organized under the laws of this state and transacting business in this state must be payable by the assuming insurer on
the basis of liability of the ceding company under the contract
or contracts reinsured without diminution because of the
insolvency of the ceding company, and any such reinsurance
agreement which may be canceled on less than ninety days
notice must provide for a run-off of the reinsurance in force
at the date of cancellation.
(4) The domiciliary conservator, liquidator, receiver, or
statutory successor of an insolvent ceding insurer shall give
written notice to the assuming insurer of the pendency of a
claim against the insolvent ceding insurer on the policy or
bond reinsured within a reasonable time after such claim is
filed in the insolvency proceeding and that during the pendency of such claim any assuming insurer may investigate
such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defense or
defenses which it may deem available to the ceding insurer or
its liquidator or receiver or statutory successor.
The expense thus incurred by the assuming insurer shall
be chargeable subject to court approval against the insolvent
[Title 48 RCW—page 51]
48.12.162
Title 48 RCW: Insurance
ceding insurer as a part of the expense of liquidation to the
extent of a proportionate share of the benefit which may
accrue to the ceding insurer solely as a result of the defense
undertaken by the assuming insurer.
(5) Where two or more assuming insurers are involved in
the same claim and a majority in interest elect to interpose to
such claim, the expense shall be apportioned in accordance
with the terms of the reinsurance agreement as though such
expense had been incurred by the ceding insurer.
(6) The credit permitted by subsection (1)(b) of this section is prohibited unless the assuming alien insurer agrees in
the trust agreement, notwithstanding other provisions in the
trust instrument, if the trust fund is inadequate because it contains an amount less than the amount required by subsection
(1)(b) of this section or if the grantor of the trust has been
declared insolvent or placed into receivership, rehabilitation,
liquidation, or similar proceedings under the laws of its state
or country of domicile:
(a) To comply with an order of the commissioner with
regulatory oversight over the trust or with an order of a court
of competent jurisdiction directing the trustee to transfer to
the commissioner with regulatory oversight all of the assets
of the trust fund;
(b) That assets be distributed by, and insurance claims of
United States trust beneficiaries be filed with and valued by,
the commissioner with regulatory oversight in accordance
with the laws of the state in which the trust is domiciled that
are applicable to the liquidation of domestic insurance companies;
(c) That if the commissioner with regulatory oversight
determines that the assets of the trust fund or a part thereof
are not necessary to satisfy the claims of the United States
ceding insurers, which are United States trust beneficiaries,
the assets or part thereof shall be returned by the commissioner with regulatory oversight to the trustee for distribution
in accordance with the trust agreement; and
(d) That the grantor waives any right otherwise available
to it under United States law that is inconsistent with this provision. [1997 c 379 § 6; 1996 c 297 § 1; 1994 c 86 § 1; 1993
c 91 § 2; 1977 ex.s. c 180 § 3; 1947 c 79 § .12.16; Rem. Supp.
1947 § 45.12.16.]
Purpose—Intent—1997 c 379: See note following RCW 48.12.156.
Rules to implement—1996 c 297: "The insurance commissioner shall
adopt rules to implement and administer the amendatory changes made by
section 1, chapter 297, Laws of 1996." [1996 c 297 § 2.]
Effective dates—1996 c 297: "(1) Sections 2 and 3 of this act are necessary for the immediate preservation of the public peace, health, or safety,
or support of the state government and its existing public institutions, and
shall take effect immediately [March 30, 1996].
(2) Section 1 of this act shall take effect January 1, 1997." [1996 c 297
§ 4.]
Effective date—1994 c 86: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[March 23, 1994]." [1994 c 86 § 3.]
48.12.162
48.12.162 Credit for reinsurance—Contract provisions—After December 31, 1996—Payment—Rights of
original insured or policyholder. (1) Credit for reinsurance
in a reinsurance contract entered into after December 31,
1996, is allowed a domestic ceding insurer as either an asset
or a deduction from liability in accordance with RCW
[Title 48 RCW—page 52]
48.12.160 only if the reinsurance contract contains provisions
that provide, in substance, as follows:
(a) The reinsurer shall indemnify the ceding insurer
against all or a portion of the risk it assumed according to the
terms and conditions contained in the reinsurance contract.
(b) In the event of insolvency and the appointment of a
conservator, liquidator, or statutory successor of the ceding
company, the portion of risk or obligation assumed by the
reinsurer is payable to the conservator, liquidator, or statutory
successor on the basis of claims allowed against the insolvent
company by a court of competent jurisdiction or by a conservator, liquidator, or statutory successor of the company having authority to allow such claims, without diminution
because of that insolvency, or because the conservator, liquidator, or statutory successor failed to pay all or a portion of
any claims. Payments by the reinsurer as provided in this subsection are made directly to the ceding insurer or to its conservator, liquidator, or statutory successor, except where the
contract of insurance, reinsurance, or other written agreement
specifically provides another payee of such reinsurance in the
event of the insolvency of the ceding insurer.
(2) Payment under a reinsurance contract must be made
within a reasonable time with reasonable provision for verification in accordance with the terms of the reinsurance agreement. However, in no event shall the payments be beyond the
period required by the national association of insurance commissioners accounting practices and procedures manual.
(3) The original insured or policyholder may not have
any rights against the reinsurer that are not specifically set
forth in the contract of reinsurance, or in a specific agreement
between the reinsurer and the original insured or policyholder. [1997 c 379 § 4.]
Purpose—Intent—1997 c 379: See note following RCW 48.12.156.
48.12.164
48.12.164 Credit for reinsurance—Accounting or
financial statement—After December 31, 1996. Credit for
reinsurance, as either an asset or a deduction, is prohibited in
an accounting or financial statement of the ceding insurer in
respect to the reinsurance contract unless, in such contract,
the reinsurer undertakes to indemnify the ceding insurer
against all or a part of the loss or liability arising out of the
original insurance. This section only applies to those reinsurance contracts entered into after December 31, 1996. [1997 c
379 § 5.]
Purpose—Intent—1997 c 379: See note following RCW 48.12.156.
48.12.166
48.12.166 Assuming alien reinsurer—Registration—
Requirements—Duties of commissioner—Costs. (1) The
assuming alien reinsurer must register with the commissioner
and must:
(a) File with the commissioner evidence of its submission to this state's jurisdiction and to this state's authority to
examine its books and records under chapter 48.03 RCW;
(b) Designate the commissioner as its lawful attorney
upon whom service of all papers may be made for an action,
suit, or proceeding instituted by or on behalf of the ceding
insurer;
(c) File with the commissioner a certified copy of a letter
or a certificate of authority or a certificate of compliance
issued by the assuming alien insurer's domiciliary jurisdic(2004 Ed.)
Assets and Liabilities
tion and the domiciliary jurisdiction of its United States reinsurance trust;
(d) Submit a statement, signed and verified by an officer
of the assuming alien insurer to be true and correct, that discloses whether the assuming alien insurer or an affiliated person who owns or has a controlling interest in the assuming
alien insurer is currently known to be the subject of one or
more of the following:
(i) An order or proceeding regarding conservation, liquidation, or receivership;
(ii) An order or proceeding regarding the revocation or
suspension of a license or accreditation to transact insurance
or reinsurance in any jurisdiction; or
(iii) An order or proceeding brought by an insurance regulator in any jurisdiction seeking to restrict or stop the assuming alien insurer from transacting insurance or reinsurance
based upon a hazardous financial condition.
The assuming alien insurer shall provide the commissioner with copies of all orders or other documents initiating
proceedings subject to disclosure under this subsection. The
statement must affirm that no actions, proceedings, or orders
subject to this subsection are outstanding against the assuming alien insurer or an affiliated person who owns or has a
controlling interest in the assuming alien insurer, except as
disclosed in the statement;
(e) File other information, financial or otherwise, which
the commissioner reasonably requests.
(2) A registration continues in force until suspended,
revoked, or not renewed. A registration is subject to renewal
annually on the first day of July upon application of the
assuming alien insurer and payment of the fee in the same
amount as an insurer pays for renewal of a certificate of
authority.
(3) The commissioner shall give an assuming alien
insurer notice of his or her intention to revoke or refuse to
renew its registration at least ten days before the order of
revocation or refusal is to become effective.
(4) The commissioner shall, consistent with chapters
48.04 and 34.05 RCW, deny or revoke an assuming alien
insurer's registration if the assuming alien insurer no longer
qualifies or meets the requirements for registration.
(5) The commissioner may, consistent with chapters
48.04 and 34.05 RCW, deny or revoke an assuming alien
insurer's registration if the assuming alien insurer:
(a) Fails to comply with a provision of this chapter or
fails to comply with an order or regulation of the commissioner;
(b) Is found by the commissioner to be in such a condition that its further transaction of reinsurance would be hazardous to ceding insurers, policyholders, or the people in this
state;
(c) Refuses to remove or discharge a trustee, director, or
officer who has been convicted of a crime involving fraud,
dishonesty, or moral turpitude;
(d) Usually compels policy-holding claimants either to
accept less than the amount due them or to bring suit against
the assuming alien insurer to secure full payment of the
amount due;
(e) Refuses to be examined, or its trustees, directors,
officers, employees, or representatives refuse to submit to
examination or to produce its accounts, records, and files for
(2004 Ed.)
48.12.168
examination by the commissioner when required, or refuse to
perform a legal obligation relative to the examination;
(f) Refuses to submit to the jurisdiction of the United
States courts;
(g) Fails to pay a final judgment rendered against it:
(i) Within thirty days after the judgment became final;
(ii) Within thirty days after time for taking an appeal has
expired; or
(iii) Within thirty days after dismissal of an appeal
before final determination;
whichever date is later;
(h) Is found by the commissioner, after investigation or
upon receipt of reliable information:
(i) To be managed by persons, whether by its trustees,
directors, officers, or by other means, who are incompetent or
untrustworthy or so lacking in insurance company management experience as to make proposed operation hazardous to
the insurance-buying public; or
(ii) That there is good reason to believe it is affiliated
directly or indirectly through ownership, control, or business
relations, with a person or persons whose business operations
are, or have been found to be, in violation of any law or rule,
to the detriment of policyholders, stockholders, investors,
creditors, or of the public, by bad faith or by manipulation of
the assets, accounts, or reinsurance;
(i) Does business through reinsurance intermediaries or
other representatives in this state or in any other state, who
are not properly licensed under applicable laws and rules; or
(j) Fails to pay, by the date due, any amounts required by
this code.
(6) A domestic ceding insurer is not allowed credit with
respect to reinsurance ceded, if the assuming alien insurer's
registration has been revoked by the commissioner.
(7) The actual costs and expenses incurred by the commissioner for an examination of a registered alien insurer
must be charged to and collected from the alien reinsurer.
(8) A registered alien reinsurer is included as a "class
one" organization for the purposes of RCW 48.02.190. [1997
c 379 § 7.]
Purpose—Intent—1997 c 379: See note following RCW 48.12.156.
48.12.168
48.12.168 Credit for reinsurance—Foreign ceding
insurer. (1) Unless credit for reinsurance or deduction from
liability is prohibited under RCW 48.12.164, a foreign ceding
insurer is allowed credit for reinsurance or deduction from
liability to the extent credit has been allowed by the ceding
insurer's state of domicile if:
(a) The state of domicile is accredited by the national
association of insurance commissioners; or
(b) Credit or deduction from liability would be allowed
under chapter 379, Laws of 1997 if the foreign ceding insurer
were domiciled in this state.
(2) Notwithstanding subsection (1) of this section, credit
for reinsurance or deduction from liability may be disallowed
upon a finding by the commissioner that either the condition
of the reinsurer, or the collateral or other security provided by
the reinsurer, does not satisfy the credit for reinsurance
requirements applicable to ceding insurers domiciled in this
state. [1997 c 379 § 8.]
Purpose—Intent—1997 c 379: See note following RCW 48.12.156.
[Title 48 RCW—page 53]
48.12.170
Title 48 RCW: Insurance
48.12.170
48.12.170 Valuation of bonds. (1) All bonds or other
evidences of debt having a fixed term and rate held by any
insurer may, if amply secured and not in default as to principal or interest, be valued as follows:
(a) If purchased at par, at the par value.
(b) If purchased above or below par, on the basis of the
purchase price adjusted so as to bring the value to par at the
earliest date callable at par or maturing at par and so as to
yield in the meantime the effective rate of interest at which
the purchase was made; or in lieu of such method, according
to such accepted method of valuation as is approved by the
commissioner.
(c) Purchase price shall in no case be taken at a higher
figure than the actual market value at the time of purchase.
(d) Unless otherwise provided by a valuation established
or approved by the National Association of Insurance Commissioners, no such security shall be carried at above call
price for the entire issue during any period within which the
security may be so called.
(2) Such securities not amply secured or in default as to
principal or interest shall be carried at market value.
(3) The commissioner shall have full discretion in determining the method of calculating values according to the
rules set forth in this section, and not inconsistent with any
such methods then currently formulated or approved by the
National Association of Insurance Commissioners. [1947 c
79 § .12.17; Rem. Supp. 1947 § 45.12.17.]
48.12.180
48.12.180 Valuation of stocks. (1) Securities, other
than those referred to in RCW 48.12.170, held by an insurer
shall be valued, in the discretion of the commissioner, at their
market value, or at their appraised value, or at prices determined by him or her as representing their fair market value.
(2) Preferred or guaranteed stocks or shares while paying
full dividends may be carried at a fixed value in lieu of market value, at the discretion of the commissioner and in accordance with such method of computation as he or she may
approve.
(3) The stock of a subsidiary of an insurer shall be valued
on the basis of the greater of (a) the value of only such of the
assets of such subsidiary as would constitute lawful investments for the insurer if acquired or held directly by the
insurer or (b) such other value determined pursuant to rules
and cumulative limitations which shall be promulgated by the
commissioner to effectuate the purposes of this chapter.
(4) The commissioner has full discretion in determining
the method of calculating values according to the rules set
forth in this section, and consistent with such methods as then
adopted by the National Association of Insurance Commissioners. [1993 c 462 § 54; 1973 c 151 § 1; 1947 c 79 § .12.18;
Rem. Supp. 1947 § 45.12.18.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.12.190
48.12.190 Valuation of property. (1) Real property
acquired pursuant to a mortgage loan or a contract for a deed,
in the absence of a recent appraisal deemed by the commissioner to be reliable, shall not be valued at an amount greater
than the unpaid principal of the defaulted loan or contract at
the date of such acquisition, together with any taxes and
expenses paid or incurred in connection with such acquisi[Title 48 RCW—page 54]
tion, and the cost of improvements thereafter made by the
insurer and any amounts thereafter paid by the insurer on
assessments levied for improvements in connection with the
property.
(2) Other real property held by an insurer shall not be
valued at any amount in excess of fair value, less reasonable
depreciation based on the estimated life of the improvements.
(3) Personal property acquired pursuant to chattel mortgages made under RCW 48.13.150 shall not be valued at an
amount greater than the unpaid balance of principal on the
defaulted loan at date of acquisition together with taxes and
expenses incurred in connection with such acquisition, or the
fair value of such property, whichever amount is the lesser.
(4) The commissioner has full discretion in determining
the method of calculating values according to the rules set
forth in this section, and consistent with such methods as then
adopted by the National Association of Insurance Commissioners. [1993 c 462 § 55; 1967 ex.s. c 95 § 10; 1947 c 79 §
.12.19; Rem. Supp. 1947 § 45.12.19.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.12.200
48.12.200 Valuation of purchase money mortgages.
(1) Purchase money mortgages shall be valued in an amount
not exceeding the acquisition cost of the real property covered thereby or ninety percent of the fair value of such real
property, whichever is less.
(2) The commissioner has full discretion in determining
the method of calculating values according to the rules set
forth in this section, and consistent with such methods as then
adopted by the National Association of Insurance Commissioners. [1993 c 462 § 56; 1947 c 79 § .12.20; Rem. Supp.
1947 § 45.12.20.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
Chapter 48.13
Chapter 48.13 RCW
INVESTMENTS
Sections
48.13.010
48.13.020
48.13.030
48.13.040
48.13.050
48.13.060
48.13.070
48.13.080
48.13.090
48.13.100
48.13.110
48.13.120
48.13.125
48.13.130
48.13.140
48.13.150
48.13.160
48.13.170
48.13.180
48.13.190
48.13.200
48.13.210
48.13.218
48.13.220
48.13.230
Scope of chapter—Eligible investments.
General qualifications.
Limitation on securities of one entity or a depository institution.
Public obligations.
Corporate obligations.
Terms defined.
Securities of merged or reorganized institutions.
Preferred or guaranteed stocks.
Trustees' or receivers' obligations.
Equipment trust certificates.
Mortgages, deeds of trust, mortgage bonds, notes, contracts.
Investments limited by property value.
Mortgage loans on one family dwellings—Limitation on
amortization.
"Encumbrance" defined.
Appraisal of property—Insurance—Limit of loan.
Auxiliary chattel mortgages.
Real property owned—Home office building.
Disposal of real property—Time limit.
Foreign securities.
Policy loans.
Savings and share accounts.
Insurance stocks.
Limitation on insurer loans or investments.
Common stocks—Investment—Acquisition—Engaging in
certain businesses.
Collateral loans.
(2004 Ed.)
Investments
48.13.240
48.13.250
48.13.260
48.13.265
48.13.270
48.13.273
48.13.275
48.13.280
48.13.285
48.13.290
48.13.340
48.13.350
48.13.360
48.13.450
48.13.455
48.13.460
48.13.465
48.13.470
48.13.475
48.13.490
Miscellaneous investments.
Special consent investments.
Required investments for capital and reserves.
Investments secured by real estate—Amount restricted.
Prohibited investments.
Acquisition of medium and lower grade obligations—Definitions—Limitations—Rules.
Obligations rated by the securities valuation office.
Securities underwriting, agreements to withhold or repurchase, prohibited.
Derivative transactions—Restrictions—Definitions—Rules.
Disposal of ineligible property or securities.
Authorization of investments.
Record of investments.
Investments of foreign and alien insurers.
Safeguarding securities—Definitions.
Safeguarding securities—Deposit in a clearing corporation or
the federal reserve book-entry securities system—Certificates—Records.
Safeguarding securities—Authorized methods of holding
securities.
Safeguarding securities—Requirement to receive a confirmation.
Safeguarding securities—Broker executing a trade—Time
limits.
Safeguarding securities—Maintenance with a qualified custodian—Commissioner may order transfer—Challenge to
order—Standing at hearing or for judicial review.
Safeguarding securities—Rules.
Valuation of investments: RCW 48.12.170 through 48.12.200.
48.13.010
48.13.010 Scope of chapter—Eligible investments.
(1) Investments of domestic insurers shall be eligible to be
held as assets only as prescribed in this chapter.
(2) Any particular investment of a domestic insurer held
by it on the effective date of this code and which was a legal
investment immediately prior thereto, shall be deemed a legal
investment hereunder.
(3) The eligibility of an investment shall be determined
as of the date of its making or acquisition.
(4) Except as to RCW 48.13.360, this chapter applies
only to domestic insurers. [1973 c 151 § 2; 1947 c 79 §
.13.01; Rem. Supp. 1947 § 45.13.01.]
48.13.020
48.13.020 General qualifications. (1) No security or
other investment shall be eligible for purchase or acquisition
under this chapter unless it is interest bearing or interest
accruing or dividend or income paying, is not then in default
in any respect, and the insurer is entitled to receive for its
exclusive account and benefit, the interest or income accruing
thereon; except,
(a) that an insurer may acquire real property as provided
in RCW 48.13.160, and
(b) that this section shall not prevent participation by an
insurer in a mortgage loan if the insurer, either individually or
jointly with other lenders, holds a senior participation in such
mortgage or deed of trust giving it substantially the rights of
a first mortgagee as to its interest in that loan.
(2) No security shall be eligible for purchase at a price
above its market value except voting stock of a corporation
being acquired as a subsidiary.
(3) No provision of this chapter shall prohibit the acquisition by an insurer of other or additional securities or property if received as a dividend or as a lawful distribution of
assets, or if acquired pursuant to a lawful and bona fide agreement of bulk reinsurance or consolidation. Any investments
so acquired through bulk reinsurance or consolidation, which
are not otherwise eligible under this chapter, shall be dis(2004 Ed.)
48.13.050
posed of pursuant to RCW 48.13.290 if personal property or
securities, or pursuant to RCW 48.13.170 if real property.
[1983 1st ex.s. c 32 § 2; 1982 c 218 § 2; 1967 ex.s. c 95 § 11;
1947 c 79 § .13.02; Rem. Supp. 1947 § 45.13.02.]
Severability—1982 c 218: See note following RCW 48.12.020.
48.13.030
48.13.030 Limitation on securities of one entity or a
depository institution. (1) Except as set forth in RCW
48.13.273, an insurer shall not, except with the consent of the
commissioner, have at any time any combination of investments in or loans upon the security of the obligations, property, and securities of any one person, institution, or municipal corporation aggregating an amount exceeding four percent of the insurer's assets. This section shall not apply to
investments in, or loans upon the security of general obligations of the government of the United States or of any state of
the United States, nor to investments in foreign securities
pursuant to RCW 48.13.180(1), nor include policy loans
made pursuant to RCW 48.13.190.
(2) An insurer shall not, except with the consent of the
commissioner, have at any time investments in the voting
securities of a depository institution or any company which
controls a depository institution aggregating an amount
exceeding five percent of the insurer's admitted assets. [2001
c 21 § 1; 1993 c 92 § 1; 1947 c 79 § .13.03; Rem. Supp. 1947
§ 45.13.03.]
48.13.040
48.13.040 Public obligations. An insurer may invest
any of its funds in bonds or other evidences of debt, not in
default as to principal or interest, which are valid and legally
authorized obligations issued, assumed or guaranteed by the
United States or by any state thereof or by any territory or
possession of the United States or by the District of Columbia
or by any county, city, town, village, municipality or district
therein or by any political subdivision thereof or by any civil
division or public instrumentality of one or more of the foregoing, if, by statutory or other legal requirements applicable
thereto, such obligations are payable, as to both principal and
interest, (1) from taxes levied or required to be levied upon all
taxable property or all taxable income within the jurisdiction
of such governmental unit or, (2) from adequate special revenues pledged or otherwise appropriated or by law required to
be provided for the purpose of such payment, but not including any obligation payable solely out of special assessments
on properties benefited by local improvements unless adequate security is evidenced by the ratio of assessment to the
value of the property or the obligation is additionally secured
by an adequate guaranty fund required by law. [1947 c 79 §
.13.04; Rem. Supp. 1947 § 45.13.04.]
48.13.050
48.13.050 Corporate obligations. Except as set forth
in RCW 48.13.273, an insurer may invest any of its funds in
obligations other than those eligible for investment under
RCW 48.13.110 if they are issued, assumed, or guaranteed by
any solvent institution created or existing under the laws of
the United States or of any state, district or territory thereof,
and are qualified under any of the following:
(1) Obligations which are secured by adequate collateral
security and bear fixed interest if during each of any three,
including the last two, of the five fiscal years next preceding
[Title 48 RCW—page 55]
48.13.060
Title 48 RCW: Insurance
the date of acquisition by the insurer, the net earnings of the
issuing, assuming or guaranteeing institution available for its
fixed charges, as defined in RCW 48.13.060, have been not
less than one and one-fourth times the total of its fixed
charges for such year. In determining the adequacy of collateral security, not more than one-third of the total value of
such required collateral shall consist of stock other than stock
meeting the requirements of RCW 48.13.080.
(2) Fixed interest bearing obligations, other than those
described in subdivision (1) of this section, if the net earnings
of the issuing, assuming or guaranteeing institution available
for its fixed charges for a period of five fiscal years next preceding the date of acquisition by the insurer have averaged
per year not less than one and one-half times its average
annual fixed charges applicable to such period and if during
the last year of such period such net earnings have been not
less than one and one-half times its fixed charges for such
year.
(3) Adjustment, income or other contingent interest obligations if the net earnings of the issuing, assuming or guaranteeing institution available for its fixed charges for a period of
five fiscal years next preceding the date of acquisition by the
insurer have averaged per year not less than one and one-half
times the sum of its average annual fixed charges and its
average annual maximum contingent interest applicable to
such period and if during each of the last two years of such
period such net earnings have been not less than one and onehalf times the sum of its fixed charges and maximum contingent interest for such year. [1993 c 92 § 2; 1947 c 79 §
.13.05; Rem. Supp. 1947 § 45.13.05.]
48.13.060 Terms defined. (1) Certain terms used are
defined for the purposes of this chapter as follows:
(a) "Obligation" includes bonds, debentures, notes or
other evidences of indebtedness.
(b) "Net earnings available for fixed charges" means net
income after deducting operating and maintenance expenses,
taxes other than federal and state income taxes, depreciation
and depletion, but excluding extraordinary nonrecurring
items of income or expense appearing in the regular financial
statements of such institution.
(c) "Fixed charges" includes interest on funded and
unfunded debt, amortization of debt discount, and rentals for
leased properties.
(d) "Admitted assets" means the amount as of the last
day of the most recently concluded annual statement year,
computed in the same manner as "assets" in RCW 48.12.010.
(e) "Aggregate amount" of medium grade and lower
grade obligations means the aggregate statutory statement
value of those obligations thereof.
(f) "Institution" means a corporation, a joint stock company, an association, a trust, a business partnership, a business joint venture, or similar entity.
(2) If net earnings are determined in reliance upon consolidated earnings statements of parent and subsidiary institutions, such net earnings shall be determined after provision
for income taxes of subsidiaries and after proper allowance
for minority stock interest, if any; and the required coverage
of fixed charges shall be computed on a basis including fixed
charges and preferred dividends of subsidiaries other than
those payable by such subsidiaries to the parent corporation
48.13.060
[Title 48 RCW—page 56]
or to any other of such subsidiaries, except that if the minority
common stock interest in the subsidiary corporation is substantial, the fixed charges and preferred dividends may be
apportioned in accordance with regulations prescribed by the
commissioner. [1993 c 92 § 3; 1947 c 79 § .13.06; Rem.
Supp. 1947 § 45.13.06.]
48.13.070
48.13.070 Securities of merged or reorganized institutions. In applying the earnings test set forth in RCW
48.13.060 to any such institution, whether or not in legal
existence during the whole of such five years next preceding
the date of investment by the insurer, which has at any time
during the five-year period acquired substantially all of the
assets of any other institution or institutions by purchase,
merger, consolidation or otherwise, or has been reorganized
pursuant to the bankruptcy law, the earnings of the predecessor or constituent institutions, or of the institution so reorganized, available for interest and dividends for such portion of
the five-year period as may have preceded such acquisition,
or such reorganization, may be included in the earnings of
such issuing, assuming or guaranteeing institution for such
portion of such period as may be determined in accordance
with adjusted or pro forma consolidated earnings statements
covering such portion of such period and giving effect to all
stock or shares outstanding, and all fixed charges existing,
immediately after such acquisition, or such reorganization.
[1947 c 79 § .13.07; Rem. Supp. 1947 § 45.13.07.]
48.13.080
48.13.080 Preferred or guaranteed stocks. (1) An
insurer may invest any of its funds, in an aggregate amount
not exceeding ten percent of its assets, if a life insurer, or not
exceeding fifteen percent of such assets if other than a life
insurer, in preferred or guaranteed stocks or shares, other than
common stocks, of solvent institutions existing under the
laws of the United States or of any state, district or territory
thereof, if all of the prior obligations and prior preferred
stocks, if any, of such institution at the date of acquisition by
the insurer are eligible as investments under this chapter; and
if qualified under either of the following:
(a) Preferred stocks or shares shall be deemed qualified
if both these requirements are met:
(i) The net earnings of the institution available for its
fixed charges for a period of five fiscal years next preceding
the date of acquisition by the insurer must have averaged per
year not less than one and one-half times the sum of its average annual fixed charges, if any, its average annual maximum
contingent interest, if any, and its average annual preferred
dividend requirements applicable to such period; and
(ii) during each of the last two years of such period such
net earnings must have been not less than one and one-half
times the sum of its fixed charges, contingent interest and
preferred dividend requirements for such year. The term
"preferred dividend requirements" shall be deemed to mean
cumulative or noncumulative dividends whether paid or not.
(b) Guaranteed stocks or shares shall be deemed qualified if the assuming or guaranteeing institution meets the
requirements of subdivision (1) of RCW 48.13.050, construed so as to include as a fixed charge the amount of guaranteed dividends of such issue or the rental covering the guarantee of such dividends.
(2004 Ed.)
Investments
(2) An insurer shall not invest in or loan upon any preferred stock having voting rights, of any one institution, in
excess of such proportion of the total issued and outstanding
preferred stock of such institution having voting rights, as
would, when added to any common shares of such institution,
directly or indirectly held by it, exceed fifteen percent of all
outstanding shares of such institution having voting rights,
nor an amount in excess of the limit provided by RCW
48.13.030. This limitation shall not apply to such shares of a
corporation which is the subsidiary of an insurer, and which
corporation is engaged exclusively in a kind of business
properly incidental to the insurance business of the insurer.
[1947 c 79 § .13.08; Rem. Supp. 1947 § 45.13.08.]
48.13.090
48.13.090 Trustees' or receivers' obligations. An
insurer may invest any of its funds, in an aggregate amount
not exceeding two percent of its assets, in certificates, notes,
or other obligations issued by trustees or receivers of institutions existing under the laws of the United States or of any
state, district or territory thereof, which, or the assets of
which, are being administered under the direction of any
court having jurisdiction, if such obligation is adequately
secured as to principal and interest. [1947 c 79 § .13.09;
Rem. Supp. 1947 § 45.13.09.]
48.13.100
48.13.100 Equipment trust certificates. An insurer
may invest any of its funds, in an aggregate amount not
exceeding ten percent of its assets, in equipment trust obligations or certificates which are adequately secured, or in other
adequately secured instruments evidencing an interest in
transportation equipment wholly or in part within the United
States and the right to receive determined portions of rental,
purchase or other fixed obligatory payments for the use or
purchase of such transportation equipment. [1947 c 79 §
.13.10; Rem. Supp. 1947 § 45.13.10.]
48.13.110
48.13.110 Mortgages, deeds of trust, mortgage
bonds, notes, contracts. An insurer may invest any of its
funds in:
(1)(a) Bonds or evidences of debt which are secured by
first mortgages or deeds of trust on improved unencumbered
real property located in the United States;
(b) Chattel mortgages in connection therewith pursuant
to RCW 48.13.150;
(c) The equity of the seller of any such property in the
contract for a deed, covering the entire balance due on a bona
fide sale of such property, in amount not to exceed ten thousand dollars or the amount permissible under RCW
48.13.030, whichever is greater, in any one such contract for
deed.
(2) Purchase money mortgages or like securities
received by it upon the sale or exchange of real property
acquired pursuant to RCW 48.13.160 as amended in *section
7 of this 1969 amendatory act.
(3) Bonds or notes secured by mortgage or trust deed
guaranteed or insured by the Federal Housing Administration
under the terms of an act of congress of the United States of
June 27, 1934, entitled the "National Housing Act," as
amended.
(2004 Ed.)
48.13.125
(4) Bonds or notes secured by mortgage or trust deed
guaranteed or insured as to principal in whole or in part by the
Administrator of Veterans' Affairs pursuant to the provisions
of Title III of an act of congress of the United States of June
22, 1944, entitled the "Servicemen's Readjustment Act of
1944," as amended.
(5) Evidences of debt secured by first mortgages or
deeds of trust upon leasehold estates, except agricultural
leaseholds executed pursuant to **RCW 79.01.096, running
for a term of not less than fifteen years beyond the maturity of
the loan as made or as extended, in improved real property,
otherwise unencumbered, and if the mortgagee is entitled to
be subrogated to all the rights under the leasehold.
(6) Evidences of debt secured by first mortgages or
deeds of trust upon agricultural leasehold estates executed
pursuant to **RCW 79.01.096, otherwise unencumbered,
and if the mortgagee is entitled to be subrogated to all the
rights under the leasehold. [1975 1st ex.s. c 154 § 1; 1969
ex.s. c 241 § 4; 1947 c 79 § .13.11; Rem. Supp. 1947 §
45.13.11.]
Reviser's note: *(1) The reference to "section 7 of this 1969 amendatory act" is to section 7, chapter 241, Laws of 1969 ex. sess., which amended
RCW 48.13.160.
**(2) RCW 79.01.096 was recodified as RCW 79.11.010 pursuant to
2003 c 334 § 556. For agricultural leaseholds, see RCW 79.13.060.
48.13.120
48.13.120 Investments limited by property value. (1)
An investment made pursuant to the provisions of RCW
48.13.110 shall not exceed seventy-five percent of the fair
value of the particular property at the time of investment.
However, if the loan is secured by a first mortgage or other
first lien upon real property improved with a single-family
residential building, the terms of such loan provide for
monthly payments of principal and interest sufficient to
effect full repayment of the loan within the remaining useful
life of the building as estimated in the appraisal for the loan,
or thirty years and two months, whichever is less, the principal so loaned or the entire note or bond issue so secured, plus
the amount of the liens of any public bond, assessment, or tax
assessed upon the property, may not exceed eighty percent of
the market value of the real property, or of the real property
together with the improvements which are taken as security.
This restriction shall not apply to purchase money mortgages
or like securities received by an insurer upon the sale or
exchange of real property acquired pursuant to RCW
48.13.160.
(2) The extent to which a mortgage loan made under
RCW 48.13.110 (3) or (4) is guaranteed or insured by the
Federal Housing Administration or guaranteed by the
Administrator of Veterans' Affairs may be deducted before
application of the limitations contained in subsection (1) of
this section. [1993 c 92 § 7; 1969 ex.s. c 241 § 5; 1967 c 150
§ 11; 1955 c 303 § 1; 1949 c 190 § 16; 1947 c 79 § .13.12;
Rem. Supp. 1949 § 45.13.12.]
48.13.125
48.13.125 Mortgage loans on one family dwellings—
Limitation on amortization. Loans on one family dwellings
secured by mortgages or deeds of trust or investments therein
shall be amortized within not more than thirty years and two
months by payments of installments thereon at regular intervals not less frequent than every three months; except those
[Title 48 RCW—page 57]
48.13.130
Title 48 RCW: Insurance
guaranteed or insured in whole or in part by the Federal
Housing Administration, the Administrator of Veterans'
Affairs or the Farmers Home Administration. [1969 ex.s. c
241 § 6; 1967 c 150 § 10.]
48.13.130
48.13.130 "Encumbrance" defined. (1) Real property
shall not be deemed to be encumbered within the meaning of
RCW 48.13.110 by reason of the existence of:
(a) Instruments reserving mineral, oil, timber or similar
rights, rights of way, sewer rights, or rights in walls;
(b) Liens for taxes or assessments not delinquent, or liens
not delinquent for community recreational facilities, or for
the maintenance of community facilities, or for service and
maintenance of water rights;
(c) Building restrictions or other restrictive covenants;
(d) Encroachments, if such encroachments are taken into
consideration in determining the fair value of the property;
(e) A lease under which rents or profits are reserved to
the owner if in any event the security for the loan or investment is a first lien upon the real property; or
(f) With respect to loans secured by mortgage, deed of
trust, or other collateral guaranteed or insured in full or in part
by the government of the United States, such encumbrances
as are allowed as exceptions in title by the administrator or
administration of the division of such government so guaranteeing or insuring.
(2) If under any of the exceptions set forth in subsection
(1) of this section there is any sum owing but not due or delinquent, the total amount of such sum shall be deducted from
the amount which otherwise might be loaned on the property.
The value of any mineral, oil, timber or similar right reserved
shall not be included in the fair value of the property. [1955
c 303 § 2; 1947 c 79 § .13.13; Rem. Supp. 1947 § 45.13.13.]
48.13.140
48.13.140 Appraisal of property—Insurance—Limit
of loan. (1) The fair value of property shall be determined by
appraisal by a competent appraiser at the time of the acquisition of real property or of the making or acquiring of a mortgage loan or investing in a contract for the deed thereon;
except, that as to bonds or notes secured by mortgage or trust
deed guaranteed or insured by the Federal Housing Administration, or guaranteed or insured as to principal in full or in
part by the Administrator of Veterans' Affairs, or guaranteed
or insured by the Farmers Home Administration, the valuation made by such administration or administrator shall be
deemed to have been made by a competent appraiser for the
purposes of this subsection.
(2) Buildings and other improvements located on mortgaged premises shall be kept insured for the benefit of the
mortgagee against loss or damage from fire in an amount not
less than the unpaid balance of the obligation, or the insurable
value of the property, whichever is the lesser.
(3) An insurer shall not make or acquire a loan or loans
upon the security of any one parcel of real property in aggregate amount in excess of twenty-five thousand dollars or
more than the amount permissible under RCW 48.13.030,
whichever is the greater. [1967 ex.s. c 95 § 12; 1955 c 303 §
3; 1947 c 79 § .13.14; Rem. Supp. 1947 § 45.13.14.]
[Title 48 RCW—page 58]
48.13.150
48.13.150 Auxiliary chattel mortgages. (1) In connection with a mortgage loan on the security of real property
designed and used primarily for residential purposes only,
acquired pursuant to RCW 48.13.110, an insurer may loan or
invest an amount not exceeding twenty percent of the amount
loaned on or invested in such real property mortgage, on the
security of a chattel mortgage for a term of not more than five
years representing a first and prior lien, except for taxes not
then delinquent, on personal property constituting durable
equipment owned by the mortgagor and kept and used in the
mortgaged premises.
(2) The term "durable equipment" shall include only
mechanical refrigerators, mechanical laundering machines,
heating and cooking stoves and ranges, mechanical kitchen
aids, vacuum cleaners, and fire extinguishing devices; and in
addition in the case of apartment houses and hotels, room furniture and furnishings.
(3) Prior to acquisition of a chattel mortgage, items of
property to be included shall be separately appraised by a
competent appraiser and the fair market value thereof determined. No such chattel mortgage loan shall exceed in amount
the same ratio of loan to the value of the property as is applicable to the companion loan on the real property. [1947 c 79
§ .13.15; Rem. Supp. 1947 § 45.13.15.]
48.13.160
48.13.160 Real property owned—Home office building. (1) An insurer may own and invest or have invested in
its home office and branch office buildings any of its funds in
aggregate amount not to exceed ten percent of its assets
unless approved by the commissioner, or if a mutual or reciprocal insurer not to exceed ten percent of its assets nor such
amount as would reduce its surplus, exclusive of such investment, below fifty thousand dollars unless approved by the
commissioner.
(2) An insurer may own real property acquired in satisfaction or on account of loans, mortgages, liens, judgments,
or other debts previously owing to the insurer in the course of
its business.
(3) An insurer may invest or have invested in aggregate
amount not exceeding three percent of its assets in the following real property, and in the repair, alteration, furnishing, or
improvement thereof:
(a) Real property requisite for its accommodation in the
convenient transaction of its business if approved by the
commissioner.
(b) Real property acquired by gift or devise.
(c) Real property acquired in exchange for real property
owned by it. If necessary in order to consummate such an
exchange, the insurer may put up cash in amount not to
exceed twenty percent of the fair value of its real property to
be so exchanged, in addition to such property.
(d) Real property acquired through a lawful merger or
consolidation with it of another insurer and not required for
the purposes specified in subsection (1) and in paragraph (a)
of subsection (2) of this section.
(e) Upon approval of the commissioner, in real property
and equipment incident to real property, requisite or desirable
for the protection or enhancement of the value of other real
property owned by the insurer.
(4) A domestic life insurer with assets of at least twentyfive million dollars and at least ten million dollars in capital
(2004 Ed.)
Investments
and surplus, and a domestic property and casualty insurer
with assets of at least seventy-five million dollars and at least
thirty million dollars in capital and surplus, or, if a mutual or
reciprocal property or casualty insurer, at least thirty million
dollars in surplus, may, in addition to the real property
included in subsections (1), (2) and (3) of this section, own
such real property other than property to be used for ranch,
mining, recreational, amusement, or club purposes, as may be
acquired as an investment for the production of income, or as
may be acquired to be improved or developed for such investment purpose pursuant to an existing program therefor, subject to the following limitations and conditions:
(a) The cost of each parcel of real property so acquired
under this subsection (4), including the estimated cost to the
insurer of the improvement or development thereof, when
added to the book value of all other real property under this
subsection (4), together with the admitted value of all common stock, then held by it, shall not exceed twenty percent of
its admitted assets or fifty percent of its surplus over the minimum required surplus, whichever is greater, as of the thirtyfirst day of December next preceding; and
(b) The cost of each parcel of real property so acquired,
including the estimated cost to the insurer of the improvement or development thereof, shall not exceed as of the
thirty-first day of December next preceding, four percent of
its admitted assets.
(c) Indirect or proportionate interests in real estate held
by a domestic life insurer through any subsidiary shall be
included in proportion to such insurer's interest in the subsidiary in applying the limits provided in subsection (4). [1981
c 339 § 6; 1973 c 151 § 3; 1969 ex.s. c 241 § 7; 1967 ex.s. c
95 § 13; 1949 c 190 § 17; 1947 c 79 § .13.16; Rem. Supp.
1949 § 45.13.16.]
48.13.170
48.13.170 Disposal of real property—Time limit. (1)
Real property acquired by an insurer pursuant to paragraph
(a) of subsection (3) of RCW 48.13.160 shall be disposed of
within five years after it has ceased being necessary for the
use of the insurer in the transaction of its business. Real property acquired by an insurer pursuant to loans, mortgages,
liens, judgments, or other debts, or pursuant to paragraphs
(b), (c), (d), and (e) of subsection (3) of RCW 48.13.160 shall
be disposed of within five years after date of acquisition. The
time for any such disposal may be extended by the commissioner for a definite additional period or periods upon application and proof that forced sale of the property, otherwise
necessary, would be against the best interests of the insurer.
(2) Any such real property held by the insurer without
the commissioner's consent beyond the time permitted for its
disposal shall not be carried or allowed as an asset. [1967
ex.s. c 95 § 14; 1947 c 79 § .13.17; Rem. Supp. 1947 §
45.13.17.]
48.13.180
48.13.180 Foreign securities. (1) An insurer authorized to transact insurance in a foreign country may invest
any of its funds, in aggregate amount not exceeding its
deposit and reserve obligations incurred in such country, in
securities of or in such country possessing characteristics and
of a quality similar to those required pursuant to this chapter
for investments in the United States.
(2004 Ed.)
48.13.210
(2) Subject to the limitations in this chapter, an insurer
may invest any of its funds, in an aggregate amount not
exceeding ten percent of its assets, in addition to any amount
permitted pursuant to subsection (1) of this section, in obligations of foreign governments including provinces, counties,
municipalities, or similar entities, and in obligations and
securities of foreign corporations, which have not been in
default during the five years next preceding date of acquisition, and if the foreign jurisdiction has a sovereign debt rating
of SVO 1. However, an investment made in any one foreign
country pursuant to this subsection shall not exceed five percent of the insurer's assets. [2003 c 251 § 1; 1947 c 79 §
.13.18; Rem. Supp. 1947 § 45.13.18.]
48.13.190
48.13.190 Policy loans. A life insurer may loan to its
policyholder upon the pledge of the policy as collateral security, any sum not exceeding the legal reserve maintained on
the policy. [1947 c 79 § .13.19; Rem. Supp. 1947 §
45.13.19.]
48.13.200
48.13.200 Savings and share accounts. An insurer
may invest or deposit any of its funds in share or savings
accounts of savings and loan associations, or in savings
accounts of banks, and in any one such institution only to the
extent that such an account is insured by the Federal Savings
and Loan Insurance Corporation or the Federal Deposit
Insurance Corporation. [1947 c 79 § .13.20; Rem. Supp.
1947 § 45.13.20.]
48.13.210
48.13.210 Insurance stocks. (1) An insurer other than
a life insurer may invest a portion of its surplus funds in an
aggregate amount not exceeding fifty percent of its surplus
over its capital stock and other liabilities, or thirty-five percent of its capital funds, whichever is greater, in the stocks of
other insurers organized and existing under the laws of states
of the United States. Indirect or proportionate interests in
insurance stocks held by an insurer through any intermediate
subsidiary or subsidiaries shall be included in applying the
limitations provided in subsections (1), (2), and (3) of this
section.
(2) A life insurer may invest in such insurance stocks in
an aggregate amount not exceeding the smaller of the following amounts: Five percent of its assets; or twenty-five percent of its surplus over its capital stock and other liabilities, or
of surplus over its required minimum surplus if a mutual life
insurer.
(3) An insurer shall not purchase or hold as an investment more than five percent of the voting stock of any one
other insurer, and subject further to the investment limits of
RCW 48.13.030. This limitation shall not apply if such other
insurer is the subsidiary of, and substantially all its shares
having voting powers are owned by, the insurer.
(4) No such insurance stock shall be eligible as an investment unless it meets the qualifications for stocks of other corporations as set forth in RCW 48.13.220.
(5) The limitations on investment in insurance stocks set
forth in this chapter shall not apply to stocks acquired under a
plan for merger of the insurers which has been approved by
the commissioner or to shares received as stock dividends
[Title 48 RCW—page 59]
48.13.218
Title 48 RCW: Insurance
upon shares already owned. [1979 ex.s. c 199 § 3; 1979 ex.s.
c 130 § 4; 1947 c 79 § .13.21; Rem. Supp. 1947 § 45.13.21.]
48.13.218
48.13.218 Limitation on insurer loans or investments. (1) Notwithstanding RCW 48.13.220 and 48.13.240,
an insurer may not loan or invest its funds in common stock,
preferred stock, debt obligations, and other securities of one
or more subsidiaries in an aggregate amount exceeding the
lesser of the following sums: Ten percent of its assets, or
fifty percent of its surplus as regards policyholders. In calculating the amount of investments under this section, investments in domestic or foreign subsidiary insurers, health care
service contractors, and health maintenance organizations are
excluded.
(2) For the purposes of this section, "subsidiary" has the
same meaning as in RCW 48.31B.005. [2001 c 90 § 1.]
48.13.220
48.13.220 Common stocks—Investment—Acquisition—Engaging in certain businesses. (1) After satisfying
the requirements of RCW 48.13.260, an insurer may invest
any of its funds in common shares of stock in solvent United
States corporations that qualify as a sound investment;
except, that as to life insurers such investments shall further
not aggregate an amount in excess of fifty percent of the
insurer's surplus over its minimum required surplus.
(2) The insurer shall not invest in or loan upon the security of more than ten percent of the outstanding common
shares of any one such corporation, subject further to the
aggregate investment limitation of RCW 48.13.030.
(3) The limitations of subsection (2) of this section shall
not apply to investment in the securities of any subsidiary
corporations of the insurer which are engaged or organized to
engage exclusively in one or more of the following businesses:
(a) Acting as an insurance agent for its parent or for any
of its parent's insurer subsidiaries or affiliates;
(b) Investing, reinvesting, or trading in securities or acting as a securities broker or dealer for its own account, that of
its parent, any subsidiary of its parent, or any affiliate or subsidiary;
(c) Rendering management, sales, or other related services to any investment company subject to the Federal
Investment Company Act of 1940, as amended;
(d) Rendering investment advice;
(e) Rendering services related to the functions involved
in the operation of an insurance business including, but not
limited to, actuarial, loss prevention, safety engineering, data
processing, accounting, claims appraisal, and collection services;
(f) Acting as administrator of employee welfare benefit
and pension plans for governments, government agencies,
corporations, or other organizations or groups;
(g) Ownership and management of assets which the parent could itself own and manage: PROVIDED, That the
aggregate investment by the insurer and its subsidiaries
acquired pursuant to this paragraph shall not exceed the limitations otherwise applicable to such investments by the parent;
[Title 48 RCW—page 60]
(h) Acting as administrative agent for a government
instrumentality which is performing an insurance function or
is responsible for a health or welfare program;
(i) Financing of insurance premiums;
(j) Any other business activity reasonably ancillary to an
insurance business;
(k) Owning one or more subsidiary (i) insurers to the
extent permitted by this chapter, or (ii) businesses specified
in paragraphs (a) through (k) of this subsection inclusive, or
(iii) other businesses the stock of which is eligible under
RCW 48.13.240 or 48.13.250, or any combination of such
insurers and businesses.
(4) No acquisition of a majority of the total outstanding
common shares of any corporation shall be made pursuant to
this section unless a notice of intention of such proposed
acquisition shall have been filed with the commissioner not
less than ninety days, or such shorter period as may be permitted by the commissioner, in advance of such proposed
acquisition, nor shall any such acquisition be made if the
commissioner at any time prior to the expiration of the notice
period finds that the proposed acquisition is contrary to law,
or determines that such proposed acquisition would be contrary to the best interests of the parent insurer's policyholders
or of the people of this state. The following shall be the only
factors to be considered in making the foregoing determination:
(a) The availability of the funds or assets required for
such acquisition;
(b) The fairness of any exchange of stock, assets, cash, or
other consideration for the stock or assets to be received;
(c) The impact of the new operation on the parent
insurer's surplus and existing insurance business and the risks
inherent in the parent insurer's investment portfolio and operations;
(d) The fairness and adequacy of the financing proposed
for the subsidiary;
(e) The likelihood of undue concentration of economic
power;
(f) Whether the effect of the acquisition may be substantially to lessen competition in any line of commerce in insurance or to tend to create a monopoly therein; and
(g) Whether the acquisition might result in an excessive
proliferation of subsidiaries which would tend to unduly
dilute management effectiveness or weaken financial
strength or otherwise be contrary to the best interests of the
parent insurer's policyholders or of the people of this state. At
any time after an acquisition, the commissioner may order its
disposition if he finds, after notice and hearing, that its continued retention is hazardous or prejudicial to the interests of
the parent insurer's policyholders. The contents of each
notice of intention of a proposed acquisition filed hereunder
and information pertaining thereto shall be kept confidential,
shall not be subject to subpoena, and shall not be made public
unless after notice and hearing the commissioner determines
that the interests of policyholders, stockholders, or the public
will be served by the publication thereof.
(5) A domestic insurance company may, provided that it
maintains books and records which separately account for
such business, engage directly in any business referred to in
paragraphs (d), (e), (h), and (j) of subsection (3) of this section either to the extent necessarily or properly incidental to
(2004 Ed.)
Investments
the insurance business the insurer is authorized to do in this
state or to the extent approved by the commissioner and subject to any limitations he may prescribe for the protection of
the interests of the policyholders of the insurer after taking
into account the effect of such business on the insurer's existing insurance business and its surplus, the proposed allocation of the estimated cost of such business, and the risks
inherent in such business as well as the relative advantages to
the insurer and its policyholders of conducting such business
directly instead of through a subsidiary. [1982 c 218 § 3;
1973 c 151 § 4; 1949 c 190 § 18; 1947 c 79 § .13.22; Rem.
Supp. 1949 § 45.13.22.]
Severability—1982 c 218: See note following RCW 48.12.020.
48.13.230
48.13.230 Collateral loans. An insurer may loan its
funds upon the pledge of securities or evidences of debt eligible for investment under this chapter. As at date made, no
such loan shall exceed in amount ninety percent of the market
value of such collateral pledged, except that loans upon
pledges of United States government bonds may be equal to
the market value of the bonds pledged. The amount so loaned
shall be included in the maximum percentage of funds permitted to be invested in the kinds of securities or evidences of
debt pledged or permitted by RCW 48.13.030. [1947 c 79 §
.13.23; Rem. Supp. 1947 § 45.13.23.]
48.13.240
48.13.240 Miscellaneous investments. (1) An insurer
may loan or invest its funds in an aggregate amount not
exceeding the lesser of the following sums: Ten percent of its
assets, or fifty percent of its surplus over its capital and other
liabilities, or if a mutual or reciprocal insurer fifty percent of
its surplus over minimum required surplus, in loans or investments not otherwise eligible for investment and not specifically prohibited by RCW 48.13.270.
(2) No such loan or investment shall be any item
described in RCW 48.12.020.
(3) No such investment in or loan upon the security of
any one person or entity shall exceed the amount specified in
subsection (1) of this section or one percent of the insurer's
assets, whichever is the lesser, except that an investment in a
limited liability company formed under chapter 25.15 RCW
to develop real property owned by the insurer as permitted by
RCW 48.13.160 shall not exceed the lesser of the amount
specified in subsection (1) of this section or four percent of
the insurer's assets. This subsection (3) shall not apply to an
investment in the stock of a subsidiary company.
(4) The insurer shall keep a separate record of all investments acquired under this section. [2004 c 88 § 1; 1982 c 218
§ 4; 1947 c 79 § .13.24; Rem. Supp. 1947 § 45.13.24.]
Severability—1982 c 218: See note following RCW 48.12.020.
48.13.250
48.13.250 Special consent investments. Upon advance
approval of the commissioner and in compliance with RCW
48.13.020, an insurer may make any investment or kind of
investment or exchange of assets otherwise prohibited or not
eligible under any other section of this chapter. The commissioner's order of approval if granted shall specify whether the
investment or any part thereof may be credited to required
minimum capital or surplus investments, or to investment of
reserves. [1947 c 79 § .13.25; Rem. Supp. 1947 § 45.13.25.]
(2004 Ed.)
48.13.270
48.13.260
48.13.260 Required investments for capital and
reserves. (1) An insurer shall invest and keep invested its
funds aggregating in amount, if a stock insurer, not less than
one hundred percent of its minimum required capital, or if a
mutual or reciprocal insurer, not less than one hundred percent of its required minimum surplus, in cash or investments
eligible in accordance with RCW 48.13.040 (public obligations), and in mortgage loans on real property located within
this state, pursuant to RCW 48.13.110.
(2) In addition to the investments required by subsection
(1) of this section, an insurer shall invest and keep invested its
funds aggregating not less than one hundred percent of its
reserves required by this code in cash or premiums in course
of collection or in investments eligible in accordance with the
following sections: RCW 48.13.040 (public obligations),
48.13.050 (corporate obligations), 48.13.080 (preferred or
guaranteed stocks), 48.13.090 (trustees' or receivers' obligations), 48.13.100 (equipment trust certificates), 48.13.110
(mortgages, loans and contracts), 48.13.150 (auxiliary chattel
mortgages), 48.13.160 (real property, home office building,
etc.), 48.13.180 (foreign securities), 48.13.190 (policy loans),
48.13.200 (savings and share accounts), 48.13.220 (common
stocks), 48.13.230 (collateral loans), 48.13.250 (special consent investments).
(3) This section shall not apply to title insurers nor to
mutual insurers on the assessment premium plan. [1971 ex.s.
c 13 § 16; 1947 c 79 § .13.26; Rem. Supp. 1947 § 45.13.26.]
48.13.265
48.13.265 Investments secured by real estate—
Amount restricted. An insurer shall not invest or have
invested at any one time more than sixty-five percent of its
assets in investments in real estate, real estate contracts, and
notes, bonds and other evidences of debt secured by mortgage on real estate, as described in RCW 48.13.110 and
48.13.160. Any insurer which, on June 13, 1957, has in
excess of sixty-five percent of its assets so invested shall not
make any further such investments while such excess exists.
[1957 c 193 § 8.]
48.13.270
48.13.270 Prohibited investments. An insurer shall
not, except with the commissioner's approval in advance,
invest in or loan its funds upon the security of, or hold:
(1) Issued shares of its own capital stock, except for the
purpose of mutualization in accordance with RCW
48.08.080;
(2) Securities issued by any corporation if a majority of
its stock having voting power is owned directly or indirectly
by or for the benefit of any one or more of the insurer's officers and directors;
(3) Any investment or loan ineligible under the provisions of RCW 48.13.030;
(4) Securities issued by any insolvent corporation;
(5) Obligations contrary to the provisions of RCW
48.13.273; or
(6) Any investment or security which is found by the
commissioner to be designed to evade any prohibition of this
code. [1995 c 84 § 1; 1993 c 92 § 4; 1982 c 218 § 5; 1947 c
79 § .13.27; Rem. Supp. 1947 § 45.13.27.]
Severability—1982 c 218: See note following RCW 48.12.020.
[Title 48 RCW—page 61]
48.13.273
Title 48 RCW: Insurance
48.13.273
48.13.273 Acquisition of medium and lower grade
obligations—Definitions—Limitations—Rules. (1) As
used in this section:
(a) "Lower grade obligations" means obligations that are
rated four, five, or six by the securities valuation office.
(b) "Medium grade obligations" means obligations that
are rated three by the securities valuation office.
(c) "Securities valuation office" means the entity created
by the national association of insurance commissioners in
part, to assign rating categories for bond obligations acquired
by insurers.
(2) No insurer may acquire directly or indirectly, any
medium grade or lower grade obligation if, after giving effect
to the acquisition, the aggregate amount of all medium grade
and lower grade obligations then held by the insurer would
exceed twenty percent of its admitted assets provided that:
(a) No more than ten percent of an insurer's admitted
assets may be invested in lower grade obligations;
(b) No more than three percent of an insurer's admitted
assets may be invested in lower grade obligations rated five
or six by the securities valuation office;
(c) No more than one percent of an insurer's admitted
assets may be invested in lower grade obligations rated six by
the securities valuation office;
(d) No more than one percent of an insurer's admitted
assets may be invested in medium and lower grade obligations issued, guaranteed, or insured by any one institution;
and
(e) No more than one-half of one percent of an insurer's
admitted assets may be invested in lower grade obligations
issued, guaranteed, or insured by any one institution.
(3) This section does not require an insurer to sell or otherwise dispose of any obligation lawfully acquired before
July 25, 1993, or in accordance with this chapter. The commissioner shall adopt rules identifying the circumstances
under which the commissioner may approve an investment in
obligations exceeding the limitations of this section as necessary to mitigate financial loss by an insurer.
(4) The board of directors of any domestic insurance
company which acquires or invests, directly or indirectly,
more than two percent of its admitted assets in medium grade
and lower grade obligations of any institution, shall adopt a
written plan for making those investments. The plan, in addition to guidelines with respect to the quality of the issues
invested in, shall contain diversification standards including,
but not limited to, standards for issuer, industry, duration,
liquidity, and geographic location. [1993 c 92 § 5.]
48.13.275
48.13.275 Obligations rated by the securities valuation office. Notwithstanding the provisions of RCW
48.13.050, an insurer may invest its funds in obligations rated
by the securities valuation office. Investments in obligations
that are rated one or two by the securities valuation office
shall be subject to the limitations contained in RCW
48.13.030. [1993 c 92 § 6.]
48.13.280
48.13.280 Securities underwriting, agreements to
withhold or repurchase, prohibited. No insurer shall
(1) participate in the underwriting of the marketing of
securities in advance of their issuance or enter into any trans[Title 48 RCW—page 62]
action for such underwriting for the account of such insurer
jointly with any other person; or
(2) enter into any agreement to withhold from sale any of
its property, or to repurchase any property sold by it. [1947 c
79 § .13.28; Rem. Supp. 1947 § 45.13.28.]
48.13.285
48.13.285 Derivative transactions—Restrictions—
Definitions—Rules. (1) An insurer may, directly or indirectly through an investment subsidiary, engage in derivative
transactions under this section under the following conditions:
(a) An insurer may use derivative instruments under this
section to engage in hedging transactions and certain income
generation transactions, as these terms may be further defined
by rule by the insurance commissioner;
(b) Derivative instruments shall not be used for speculative purposes, but only as stated in (a) of this subsection;
(c) An insurer shall be able to demonstrate to the insurance commissioner the intended hedging characteristics and
the ongoing effectiveness of the derivative transaction or
combination of transactions through cash flow testing or
other appropriate analysis;
(d) An insurer may enter into hedging transactions under
this section if, as a result of and after giving effect to the
transaction:
(i) The aggregate statement value of options, caps,
floors, and warrants not attached to another financial instrument purchased and used in hedging transactions does not
exceed seven and one-half percent of its admitted assets;
(ii) The aggregate statement value of options, caps, and
floors written in hedging transactions does not exceed three
percent of its admitted assets; and
(iii) The aggregate potential exposure of collars, swaps,
forwards, and futures used in hedging transactions does not
exceed six and one-half percent of its admitted assets;
(e) An insurer may only enter into the following types of
income generation transactions if, as a result of and after giving effect to the transactions, the aggregate statement value of
the fixed income assets that are subject to call or that generate
the cash flows for payments under the caps or floors, plus the
face value of fixed income securities underlying a derivative
instrument subject to call, plus the amount of the purchase
obligations under the puts, does not exceed ten percent of its
admitted assets:
(i) Sales of covered call options on noncallable fixed
income securities, callable fixed income securities if the
option expires by its terms prior to the end of the noncallable
period, or derivative instruments based on fixed income securities;
(ii) Sales of covered call options on equity securities, if
the insurer holds in its portfolio, or can immediately acquire
through the exercise of options, warrants, or conversion
rights already owned, the equity securities subject to call during the complete term of the call option sold;
(iii) Sales of covered puts on investments that the insurer
is permitted to acquire under this chapter, if the insurer has
escrowed, or entered into a custodian agreement segregating,
cash or cash equivalents with a market value equal to the
amount of its purchase obligations under the put during the
complete term of the put option sold; or
(2004 Ed.)
Investments
(iv) Sales of covered caps or floors, if the insurer holds in
its portfolio the investments generating the cash flow to make
the required payments under the caps or floors during the
complete term that the cap or floor is outstanding;
(f) An insurer shall include all counterparty exposure
amounts in determining compliance with general diversification requirements and medium and low grade investment limitations under this chapter; and
(g) Pursuant to rules adopted by the insurance commissioner under subsection (3) of this section, the commissioner
may approve additional transactions involving the use of
derivative instruments in excess of the limitations in (d) of
this subsection or for other risk management purposes under
rules adopted by the commissioner, but replication transactions shall not be permitted for other than risk management
purposes.
(2) For purposes of this section:
(a) "Cap" means an agreement obligating the seller to
make payments to the buyer, with each payment based on the
amount by which a reference price or level or the performance or value of one or more underlying interests exceeds a
predetermined number, sometimes called the strike rate or
strike price;
(b) "Collar" means an agreement to receive payments as
the buyer of an option, cap, or floor and to make payments as
the seller of a different option, cap, or floor;
(c) "Counterparty exposure amount" means the net
amount of credit risk attributable to a derivative instrument
entered into with a business entity other than through a qualified exchange, qualified foreign exchange, or cleared
through a qualified clearinghouse. The amount of the credit
risk equals the market value of the over-the-counter derivative instrument if the liquidation of the derivative instrument
would result in a final cash payment to the insurer, or zero if
the liquidation of the derivative instrument would not result
in a final cash payment to the insurer.
If over-the-counter derivative instruments are entered
into under a written master agreement which provides for
netting of payments owed by the respective parties, and the
domiciliary jurisdiction of the counterparty is either within
the United States or, if not within the United States, within a
foreign jurisdiction listed in the purposes and procedures of
the securities valuation office as eligible for netting, the net
amount of credit risk shall be the greater of zero or the sum
of:
(i) The market value of the over-the-counter derivative
instruments entered into under the agreement, the liquidation
of which would result in a final cash payment to the insurer;
and
(ii) The market value of the over-the-counter derivative
instruments entered into under the agreement, the liquidation
of which would result in a final cash payment by the insurer
to the business entity.
For open transactions, market value shall be determined
at the end of the most recent quarter of the insurer's fiscal
year and shall be reduced by the market value of acceptable
collateral held by the insurer or placed in escrow by one or
both parties;
(d) "Covered" means that an insurer owns or can immediately acquire, through the exercise of options, warrants or
conversion rights already owned, the underlying interest in
(2004 Ed.)
48.13.285
order to fulfill or secure its obligations under a call option,
cap or floor it has written, or has set aside under a custodial or
escrow agreement cash or cash equivalents with a market
value equal to the amount required to fulfill its obligations
under a put option it has written, in an income generation
transaction;
(e) "Derivative instrument" means an agreement, option,
instrument, or a series or combination thereof:
(i) To make or take delivery of, or assume or relinquish,
a specified amount of one or more underlying interests, or to
make a cash settlement in lieu thereof; or
(ii) That has a price, performance, value, or cash flow
based primarily upon the actual or expected price, level, performance, value, or cash flow of one or more underlying
interests.
Derivative instruments include options, warrants used in
a hedging transaction and not attached to another financial
instrument, caps, floors, collars, swaps, forwards, futures,
and any other agreements, options, or instruments substantially similar thereto or any series or combination thereof and
any agreements, options, or instruments permitted under
rules adopted by the commissioner under subsection (3) of
this section;
(f) "Derivative transaction" means a transaction involving the use of one or more derivative instruments;
(g) "Floor" means an agreement obligating the seller to
make payments to the buyer in which each payment is based
on the amount by which a predetermined number, sometimes
called the floor rate or price, exceeds a reference price, level,
performance, or value of one or more underlying interests;
(h) "Future" means an agreement, traded on a qualified
exchange or qualified foreign exchange, to make or take
delivery of, or effect a cash settlement based on the actual or
expected price, level, performance, or value of, one or more
underlying interests;
(i) "Hedging transaction" means a derivative transaction
which is entered into and maintained to reduce:
(i) The risk of a change in the value, yield, price, cash
flow, or quantity of assets or liabilities which the insurer has
acquired or incurred or anticipates acquiring or incurring; or
(ii) The currency exchange rate risk or the degree of
exposure as to assets or liabilities which an insurer has
acquired or incurred or anticipates acquiring or incurring;
(j) "Option" means an agreement giving the buyer the
right to buy or receive (a "call option"), sell or deliver (a "put
option"), enter into, extend, or terminate or effect a cash settlement based on the actual or expected price, level, performance, or value of one or more underlying interests;
(k) "Swap" means an agreement to exchange or to net
payments at one or more times based on the actual or
expected price, level, performance, or value of one or more
underlying interests;
(l) "Underlying interest" means the assets, liabilities,
other interests, or a combination thereof underlying a derivative instrument, such as any one or more securities, currencies, rates, indices, commodities, or derivative instruments;
and
(m) "Warrant" means an instrument that gives the holder
the right to purchase an underlying financial instrument at a
given price and time or at a series of prices and times outlined
in the warrant agreement. Warrants may be issued alone or in
[Title 48 RCW—page 63]
48.13.290
Title 48 RCW: Insurance
connection with the sale of other securities, for example, as
part of a merger or recapitalization agreement, or to facilitate
divestiture of the securities of another business entity.
(3) The insurance commissioner may adopt rules implementing the provisions of this section. [1997 c 317 § 1.]
48.13.290
48.13.290 Disposal of ineligible property or securities. (1) Any ineligible personal property or securities
acquired by an insurer may be required to be disposed of
within the time not less than six months specified by order of
the commissioner, unless before that time it attains the standard of eligibility, if retention of such property or securities
would be contrary to the policyholders or public interest in
that it tends to substantially lessen competition in the insurance business or threatens impairment of the financial condition of the insurer.
(2) Any personal property or securities acquired by an
insurer contrary to RCW 48.13.270 shall be disposed of
forthwith or within any period specified by order of the commissioner.
(3) Any property or securities ineligible only because of
being excess of the amount permitted under this chapter to be
invested in the category to which it belongs shall be ineligible
only to the extent of such excess. [1982 c 218 § 6; 1973 c 151
§ 5; 1947 c 79 § .13.29; Rem. Supp. 1947 § 45.13.29.]
Severability—1982 c 218: See note following RCW 48.12.020.
48.13.340
48.13.340 Authorization of investments. No investment, loan, sale or exchange thereof shall, except as to the
policy loans of a life insurer, be made by any domestic
insurer unless authorized or approved by its board of directors or by a committee charged by the board of directors or
the bylaws with the duty of making such investment, loan,
sale or exchange. The minutes of any such committee shall be
recorded and reports thereof shall be submitted to the board
of directors for approval or disapproval. [1949 c 190 § 19;
1947 c 79 § .13.34; Rem. Supp. 1949 § 45.13.34.]
48.13.350
48.13.350 Record of investments. (1) As to each
investment or loan of the funds of a domestic insurer a written record in permanent form showing the authorization
thereof shall be made and signed by an officer of the insurer
or by the chairman of such committee authorizing the investment or loan.
(2) As to each such investment or loan the insurer's
records shall contain:
(a) In the case of loans: The name of the borrower; the
location and legal description of the property; a physical
description, and the appraised value of the security; the
amount of the loan, rate of interest and terms of repayment.
(b) In the case of securities: The name of the obligor; a
description of the security and the record of earnings; the
amount invested, the rate of interest or dividend, the maturity
and yield based upon the purchase price.
(c) In the case of real estate: The location and legal
description of the property; a physical description and the
appraised value; the purchase price and terms.
(d) In the case of all investments:
(i) The amount of expenses and commissions if any
incurred on account of any investment or loan and by whom
[Title 48 RCW—page 64]
and to whom payable if not covered by contracts with mortgage loan representatives or correspondents which are part of
the insurer's records.
(ii) The name of any officer or director of the insurer
having any direct, indirect, or contingent interest in the securities or loan representing the investment, or in the assets of
the person in whose behalf the investment or loan is made,
and the nature of such interest. [1949 c 190 § 20; 1947 c 79
§ .13.35; Rem. Supp. 1949 § 45.13.35.]
48.13.360
48.13.360 Investments of foreign and alien insurers.
The investments of a foreign or alien insurer shall be as permitted by the laws of its domicile but shall be of a quality
substantially as high as those required under this chapter for
similar funds of like domestic insurers. [1947 c 79 § .13.36;
Rem. Supp. 1947 § 45.13.36.]
48.13.450
48.13.450 Safeguarding securities—Definitions. The
definitions in this section apply throughout RCW 48.13.450
through 48.13.475 unless the context clearly requires otherwise.
(1) "Broker" means a broker as defined in RCW
62A.8-102(1)(c).
(2) "Clearing corporation" means a depository corporation which maintains a book entry accounting system and
which meets the requirements of RCW 62A.8-102(1)(e).
(3) "Commissioner" means the insurance commissioner
of the state of Washington.
(4) "Federal reserve book-entry securities system"
means the computerized systems sponsored by the United
States department of the treasury and certain agencies and
instrumentalities of the United States for holding and transferring securities of the United States government and such
agencies and instrumentalities, respectively, and managed by
the federal reserve system for participating financial institutions.
(5) "Participating financial institution" means a depositary financial institution such as a national bank, state bank,
savings and loan, credit union, or trust company that is:
(a) Authorized to participate in the federal reserve bookentry system; and
(b) Licensed by the United States or the banking authorities in its state of domicile and is regularly examined by the
licensing authority.
(6) "Qualified custodian" means either a participating
financial institution or a clearing corporation, or both. A
qualified custodian does not include a broker.
(7) "Securities" means instruments as defined in RCW
62A.8-102(1)(o). [2000 c 221 § 1.]
48.13.455
48.13.455 Safeguarding securities—Deposit in a
clearing corporation or the federal reserve book-entry
securities system—Certificates—Records. Notwithstanding any other provision of law, a domestic insurance company may deposit or arrange for the deposit of securities held
in or purchased for its general account and its separate
accounts in a clearing corporation or the federal reserve
book-entry securities system. When securities are deposited
with a clearing corporation, certificates representing securities of the same class of the same issuer may be merged and
(2004 Ed.)
Fees and Taxes
held in bulk in the name of the nominee of such clearing corporation with any other securities deposited with such clearing corporation by any person, regardless of the ownership of
such securities, and certificates representing securities of
small denominations may be merged into one or more certificates of larger denominations. The records of any participating financial institution through which an insurance company
holds securities in the federal reserve book-entry securities
system, and the records of any custodian banks through
which an insurance company holds securities in a clearing
corporation, shall at all times show that such securities are
held for such insurance company and for which accounts
thereof. Ownership of, and other interests in, such securities
may be transferred by bookkeeping entry on the books of
such clearing corporation or in the federal reserve book-entry
securities system without, in either case, physical delivery of
certificates representing such securities. [2000 c 221 § 2.]
48.13.460
48.13.460 Safeguarding securities—Authorized
methods of holding securities. The following are the only
authorized methods of holding securities:
(1) A domestic insurance company may hold securities
in definitive certificates;
(2) A domestic insurance company may, pursuant to an
agreement, designate a participating financial institution or
institutions as its custodian through which it can transact and
maintain book-entry securities on behalf of the insurance
company; or
(3) A domestic insurance company may, pursuant to an
agreement, participate in depository systems of clearing corporations directly or through a custodian bank. [2000 c 221 §
3.]
48.13.465
48.13.465 Safeguarding securities—Requirement to
receive a confirmation. A domestic insurance company
using the methods of holding securities under RCW
48.13.460 (2) or (3) is required to receive a confirmation
from:
(1) The participating financial institution or the qualified
custodian whenever securities are received or surrendered
pursuant to the domestic insurance company's instructions to
a securities broker; or
(2) The securities broker provided that the domestic
insurance company has given the participating financial institution or qualified custodian and the securities broker matching instructions authorizing the transaction, which have been
confirmed by the participating financial institution or qualified custodian prior to surrendering funds or securities to
conduct the transaction. [2000 c 221 § 4.]
ant to an order from a domestic insurance company. [2000 c
221 § 5.]
48.13.475
48.13.475 Safeguarding securities—Maintenance
with a qualified custodian—Commissioner may order
transfer—Challenge to order—Standing at hearing or for
judicial review. (1) Notwithstanding the maintenance of
securities with a qualified custodian pursuant to agreement, if
the commissioner:
(a) Has reasonable cause to believe that the domestic
insurer:
(i) Is conducting its business and affairs in such a manner
as to threaten to render it insolvent;
(ii) Is in a hazardous condition or is conducting its business and affairs in a manner that is hazardous to its policyholders, creditors, or the public; or
(iii) Has committed or is committing or has engaged or is
engaging in any act that would constitute grounds for rendering it subject to rehabilitation or liquidation proceedings; or
(b) Determines that irreparable loss and injury to the
property and business of the domestic insurer has occurred or
may occur unless the commissioner acts immediately;
then the commissioner may, without hearing, order the
insurer and the qualified custodian promptly to effect the
transfer of the securities to another qualified custodian
approved by the commissioner. Upon receipt of the order, the
qualified custodian shall promptly effect the transfer of the
securities. Notwithstanding the pendency of any hearing or
request for hearing, the order shall be complied with by those
persons subject to that order. Any challenge to the validity of
the order shall be made under chapter 48.04 RCW, however,
the stay of action provisions of RCW 48.04.020 do not apply.
It is the responsibility of both the insurer and the qualified
custodian to oversee that compliance with the order is completed as expeditiously as possible. Upon receipt of an order,
there shall be no trading of the securities without specific
instructions from the commissioner until the securities are
received by the new qualified custodian, except to the extent
trading transactions are in process on the day the order is
received by the insurer and the failure to complete the trade
may result in loss to the insurer's account. Issuance of an
order does not affect the qualified custodian's liabilities with
regard to the securities that are the subject of the order.
(2) No person other than the insurer has standing at the
hearing by the commissioner or for any judicial review of the
order. [2000 c 221 § 6.]
48.13.490
48.13.490 Safeguarding securities—Rules. The commissioner may adopt rules to implement and administer
RCW 48.13.450 through 48.13.475. [2000 c 221 § 7.]
48.13.470
48.13.470 Safeguarding securities—Broker executing a trade—Time limits. (1) A broker executing a securities trade pursuant to an order from a domestic insurance
company shall send confirmation to the domestic insurance
company or the clearing corporation confirming the order has
been executed within twenty-four hours after order completion.
(2) A broker may not hold in its own account for longer
than seventy-two hours any securities bought or sold pursu(2004 Ed.)
Chapter 48.14
Chapter 48.14
Chapter 48.14 RCW
FEES AND TAXES
Sections
48.14.010
48.14.020
48.14.0201
48.14.021
48.14.022
Fee schedule.
Premium taxes.
Premiums and prepayments tax—Health care services—
State preemption.
Reduction of tax—Policies connected with pension, etc.,
plans exempt or qualified under internal revenue code.
Taxes—Exemptions and deductions.
[Title 48 RCW—page 65]
48.14.010
48.14.025
48.14.027
48.14.029
48.14.030
48.14.040
48.14.050
48.14.060
48.14.070
48.14.080
48.14.090
48.14.095
48.14.100
Title 48 RCW: Insurance
Prepayment of tax obligations under RCW 48.14.020.
Exemption for state health care premiums before July 1,
1990.
Premium tax credit—New employment for international service activities in eligible areas—Designation of census
tracts for eligibility—Records—Tax due upon ineligibility—Interest assessment—Information from employment
security department.
Tax statement.
Retaliatory provision.
"Ocean marine and foreign trade insurances" defined.
Failure to pay tax—Penalty.
Refunds.
Premium tax in lieu of other forms.
Determining amount of direct premium taxable in this state.
Unlawful or delinquent insurers or taxpayers—Computing
the tax payable—Risks, exposures, or enrolled participants only partially in state.
Foreign or alien insurers, continuing liability for taxes.
(ii)
Public adjuster, every two
years . . . . . . . . . . . . . . . . . . . . . . .
$ 50.00
Resident general agent's license, every
two years. . . . . . . . . . . . . . . . . . . . . . . . . .
$ 50.00
Managing general agent appointment,
every two years . . . . . . . . . . . . . . . . . . . .
$200.00
Examination for license, each examination:
All examinations, except examinations
administered by an independent testing service, the fees for which are to
be approved by the commissioner and
collected directly by and retained by
such independent testing service . . . .
$ 20.00
Miscellaneous services:
(i)
Filing other documents . . . . . . . . .
$ 5.00
(ii)
Commissioner's certificate under
seal . . . . . . . . . . . . . . . . . . . . . . . .
$ 5.00
(iii)
Copy of documents filed in the
commissioner's office, reasonable
charge therefor as determined by
the commissioner.
(j)
(k)
(l)
(m)
48.14.010
48.14.010 Fee schedule. (1) The commissioner shall
collect in advance the following fees:
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
For filing charter documents:
(i)
O r i g i n a l c h a r t er d o c u m e n t s ,
bylaws or record of organization of
i n s u r e r s , o r c er t i f i e d c o p i es
thereof, required to be filed. . . . . .
$250.00
(ii)
Amended charter documents, or
certified copy thereof, other than
amendments of bylaws . . . . . . . . .
$ 10.00
(iii)
No additional charge or fee shall be
required for filing any of such documents in the office of the secretary of state.
Certificate of authority:
(i)
Issuance. . . . . . . . . . . . . . . . . . . . .
$ 25.00
(ii)
Renewal . . . . . . . . . . . . . . . . . . . .
$ 25.00
Annual statement of insurer, filing . . . .
$ 20.00
Organization or financing of domestic insurers and
affiliated corporations:
(i)
Application for solicitation permit,
filing . . . . . . . . . . . . . . . . . . . . . . .
$100.00
(ii)
Issuance of solicitation permit . . .
$ 25.00
Agents' licenses:
(i)
Agent's qualification licenses
every two years . . . . . . . . . . . . . . .
$ 50.00
(ii)
Filing of appointment of each such
agent, every two years . . . . . . . . .
$ 20.00
(iii)
Limited license issued pursuant
to RCW 48.17.190, every two
years . . . . . . . . . . . . . . . . . . . . . . .
$ 20.00
Reinsurance intermediary licenses:
(i)
Reinsurance intermediary-broker,
each year . . . . . . . . . . . . . . . . . . . .
$ 50.00
(ii)
Reinsurance intermediary-manager, each year . . . . . . . . . . . . . . .
$100.00
Brokers' licenses:
(i)
Broker's license, every two
years . . . . . . . . . . . . . . . . . . . . . . .
$100.00
(ii)
Surplus line broker, every two
years . . . . . . . . . . . . . . . . . . . . . . .
$200.00
Solicitors' license, every two years. . . . .
$ 20.00
Adjusters' licenses:
(i)
Independent adjuster, every two
years . . . . . . . . . . . . . . . . . . . . . . .
$ 50.00
[Title 48 RCW—page 66]
(2) All fees so collected shall be remitted by the commissioner to the state treasurer not later than the first business
day following, and shall be placed to the credit of the general
fund: PROVIDED, That fees for examinations administered
by an independent testing service which are approved by the
commissioner pursuant to subsection (1)(l) of this section
shall be collected directly by such independent testing service
and retained by it. [1994 c 131 § 2; 1993 c 462 § 57; 1988 c
248 § 7; 1981 c 111 § 1; 1979 ex.s. c 269 § 1; 1977 ex.s. c 182
§ 1; 1969 ex.s. c 241 § 8; 1967 c 150 § 12; 1955 c 303 § 4;
1947 c 79 § .14.01; Rem. Supp. 1947 § 45.14.01.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
Effective date, implementation—1979 ex.s. c 269: "This act shall take
effect on April 1, 1980. The insurance commissioner is authorized to immediately take such steps as are necessary to insure that this 1979 act is implemented on its effective date." [1979 ex.s. c 269 § 10.]
48.14.020
48.14.020 Premium taxes. (1) Subject to other provisions of this chapter, each authorized insurer except title
insurers shall on or before the first day of March of each year
pay to the state treasurer through the commissioner's office a
tax on premiums. Except as provided in subsection (2) of this
section, such tax shall be in the amount of two percent of all
premiums, excluding amounts returned to or the amount of
reductions in premiums allowed to holders of industrial life
policies for payment of premiums directly to an office of the
insurer, collected or received by the insurer during the preceding calendar year other than ocean marine and foreign
trade insurances, after deducting premiums paid to policyholders as returned premiums, upon risks or property resident, situated, or to be performed in this state. For the purposes of this section the consideration received by an insurer
for the granting of an annuity shall not be deemed to be a premium.
(2) In the case of insurers which require the payment by
their policyholders at the inception of their policies of the
entire premium thereon in the form of premiums or premium
deposits which are the same in amount, based on the character of the risks, regardless of the length of term for which
(2004 Ed.)
Fees and Taxes
such policies are written, such tax shall be in the amount of
two percent of the gross amount of such premiums and premium deposits upon policies on risks resident, located, or to
be performed in this state, in force as of the thirty-first day of
December next preceding, less the unused or unabsorbed portion of such premiums and premium deposits computed at the
average rate thereof actually paid or credited to policyholders
or applied in part payment of any renewal premiums or premium deposits on one-year policies expiring during such
year.
(3) Each authorized insurer shall with respect to all
ocean marine and foreign trade insurance contracts written
within this state during the preceding calendar year, on or
before the first day of March of each year pay to the state
treasurer through the commissioner's office a tax of ninetyfive one-hundredths of one percent on its gross underwriting
profit. Such gross underwriting profit shall be ascertained by
deducting from the net premiums (i.e., gross premiums less
all return premiums and premiums for reinsurance) on such
ocean marine and foreign trade insurance contracts the net
losses paid (i.e., gross losses paid less salvage and recoveries
on reinsurance ceded) during such calendar year under such
contracts. In the case of insurers issuing participating contracts, such gross underwriting profit shall not include, for
computation of the tax prescribed by this subsection, the
amounts refunded, or paid as participation dividends, by such
insurers to the holders of such contracts.
(4) The state does hereby preempt the field of imposing
excise or privilege taxes upon insurers or their agents, other
than title insurers, and no county, city, town or other municipal subdivision shall have the right to impose any such taxes
upon such insurers or their agents.
(5) If an authorized insurer collects or receives any such
premiums on account of policies in force in this state which
were originally issued by another insurer and which other
insurer is not authorized to transact insurance in this state on
its own account, such collecting insurer shall be liable for and
shall pay the tax on such premiums. [1986 c 296 § 1; 1983
2nd ex.s. c 3 § 7; 1982 2nd ex.s. c 10 § 1; 1982 1st ex.s. c 35
§ 15; 1979 ex.s. c 233 § 2; 1969 ex.s. c 241 § 9; 1947 c 79 §
.14.02; Rem. Supp. 1947 § 45.14.02.]
Severability—1986 c 296: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1986 c 296 § 11.]
Application—1986 c 296 § 1: "[The 1986 c 296 amendment of] RCW
48.14.020 applies to the payment of taxes due beginning July 1, 1986, and
thereafter." [1986 c 296 § 12.]
Effective date—1986 c 296: "Section 7 of this act is necessary for the
immediate preservation of the public peace, health, and safety, the support of
the state government and its existing institutions, and shall take effect immediately. The remainder of this act shall take effect July 1, 1986." [1986 c 296
§ 13.]
Construction—Severability—Effective dates—1983 2nd ex.s. c 3:
See notes following RCW 82.04.255.
Payment of additional premium tax—1982 2nd ex.s. c 10: "The
additional premium tax payments required by the amendment of RCW
48.14.020 by section 1 of this act shall be paid to the state treasurer through
the insurance commissioner's office on March 1, 1983. Thereafter the prepayment schedule provided by RCW 48.14.025 shall apply." [1982 2nd ex.s.
c 10 § 2.]
Severability—Effective dates—1982 1st ex.s. c 35: See notes following RCW 82.08.020.
(2004 Ed.)
48.14.0201
Effective date—1979 ex.s. c 233: "This 1979 amendatory act shall
become effective beginning upon and after January 1, 1980." [1979 ex.s. c
233 § 4.]
Intent—1979 ex.s. c 233: "It is the intent of the legislature to eliminate
existing tax discrimination between qualified and nonqualified pension plans
which are effectuated by annuity contracts, by excluding the consideration
paid for such contracts from premiums subject to the premium tax." [1979
ex.s. c 233 § 1.]
Severability—1979 ex.s. c 233: "If any provision of this amendatory
act or its application to any person or circumstance is held invalid, the
remainder of the act or the application of the provision to other persons or
circumstances is not affected." [1979 ex.s. c 233 § 3.]
Credit against premium tax for assessments paid pursuant to RCW
48.32.060(1)(c): RCW 48.32.145.
Portion of state taxes on fire insurance premiums to be deposited in
firemen's pension fund: RCW 41.16.050.
volunteer fire fighters' and reserve officers' relief and pension principal
fund: RCW 41.24.030.
48.14.0201
48.14.0201 Premiums and prepayments tax—Health
care services—State preemption. (1) As used in this section, "taxpayer" means a health maintenance organization as
defined in RCW 48.46.020, a health care service contractor
as defined in RCW 48.44.010, or a self-funded multiple
employer welfare arrangement as defined in RCW
48.125.010.
(2) Each taxpayer shall pay a tax on or before the first
day of March of each year to the state treasurer through the
insurance commissioner's office. The tax shall be equal to
the total amount of all premiums and prepayments for health
care services received by the taxpayer during the preceding
calendar year multiplied by the rate of two percent.
(3) Taxpayers shall prepay their tax obligations under
this section. The minimum amount of the prepayments shall
be percentages of the taxpayer's tax obligation for the preceding calendar year recomputed using the rate in effect for the
current year. For the prepayment of taxes due during the first
calendar year, the minimum amount of the prepayments shall
be percentages of the taxpayer's tax obligation that would
have been due had the tax been in effect during the previous
calendar year. The tax prepayments shall be paid to the state
treasurer through the commissioner's office by the due dates
and in the following amounts:
(a) On or before June 15, forty-five percent;
(b) On or before September 15, twenty-five percent;
(c) On or before December 15, twenty-five percent.
(4) For good cause demonstrated in writing, the commissioner may approve an amount smaller than the preceding
calendar year's tax obligation as recomputed for calculating
the health maintenance organization's, health care service
contractor's, self-funded multiple employer welfare arrangement's, or certified health plan's prepayment obligations for
the current tax year.
(5) Moneys collected under this section shall be deposited in the general fund through March 31, 1996, and in the
health services account under RCW 43.72.900 after March
31, 1996.
(6) The taxes imposed in this section do not apply to:
(a) Amounts received by any taxpayer from the United
States or any instrumentality thereof as prepayments for
health care services provided under Title XVIII (medicare) of
the federal social security act.
[Title 48 RCW—page 67]
48.14.021
Title 48 RCW: Insurance
(b) Amounts received by any health care service contractor, as defined in RCW 48.44.010, as prepayments for health
care services included within the definition of practice of
dentistry under RCW 18.32.020.
(c) Participant contributions to self-funded multiple
employer welfare arrangements that are not taxable in this
state.
(7) Beginning January 1, 2000, the state does hereby preempt the field of imposing excise or privilege taxes upon taxpayers and no county, city, town, or other municipal subdivision shall have the right to impose any such taxes upon such
taxpayers. This subsection shall be limited to premiums and
payments for health benefit plans offered by health care service contractors under chapter 48.44 RCW, health maintenance organizations under chapter 48.46 RCW, and selffunded multiple employer welfare arrangements as defined in
RCW 48.125.010. The preemption authorized by this subsection shall not impair the ability of a county, city, town, or
other municipal subdivision to impose excise or privilege
taxes upon the health care services directly delivered by the
employees of a health maintenance organization under chapter 48.46 RCW.
(8) The taxes imposed by this section apply to a selffunded multiple employer welfare arrangement only in the
event that they are not preempted by the employee retirement
income security act of 1974, as amended, 29 U.S.C. Sec.
1001 et seq. The arrangements and the commissioner shall
initially request an advisory opinion from the United States
department of labor or obtain a declaratory ruling from a federal court on the legality of imposing state premium taxes on
these arrangements. If there has not been a final determination by the United States department of labor or a federal
court that the taxes are not preempted by federal law, the
taxes provided for in this section become effective on March
1, 2005, or thirty days following the issuance of a certificate
of authority, whichever is later. During the time period
between March 1, 2005, or thirty days following the issuance
of a certificate of authority, whichever is later, and the final
determination by the United States department of labor or a
federal court, any taxes shall be deposited in an interest bearing escrow account maintained by the [self-funded] multiple
employer welfare arrangement. Upon a final determination
that the taxes are not preempted by the employee retirement
income security act of 1974, as amended, 29 U.S.C. Sec.
1001 et seq., all funds in the interest bearing escrow account
shall be transferred to the state treasurer. [2004 c 260 § 24;
1998 c 323 § 1; 1997 c 154 § 1; 1993 sp.s. c 25 § 601; 1993 c
492 § 301.]
Severability—Effective date—2004 c 260: See RCW 48.125.900 and
48.125.901.
Effective date—1997 c 154: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1997."
[1997 c 154 § 2.]
Severability—Effective dates—Part headings, captions not law—
1993 sp.s. c 25: See notes following RCW 82.04.230.
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
Short title—Severability—Savings—Captions not law—Reservation of legislative power—Effective dates—1993 c 492: See RCW
43.72.910 through 43.72.915.
[Title 48 RCW—page 68]
48.14.021
48.14.021 Reduction of tax—Policies connected with
pension, etc., plans exempt or qualified under internal
revenue code. As to premiums received from policies or
contracts issued in connection with a pension, annuity or
profit-sharing plan exempt or qualified under sections 401,
403(b), 404, 408(b), or 501(a) of the United States internal
revenue code, the rate of tax specified in RCW 48.14.020
shall be reduced twelve and one-half percent with respect to
the tax payable in 1964, twenty-five percent with respect to
the tax payable in 1965, thirty-seven and one-half percent
with respect to the tax payable in 1966, fifty percent with
respect to the tax payable in 1967, sixty-two and one-half
percent with respect to the tax payable in 1968, seventy-five
percent with respect to the tax payable in 1969, eighty-seven
and one-half percent with respect to the tax payable in 1970,
and one hundred percent with respect to the tax payable in
1971 and annually thereafter. [1975-'76 2nd ex.s. c 119 § 1;
1974 ex.s. c 132 § 1; 1963 c 166 § 1.]
48.14.022
48.14.022 Taxes—Exemptions and deductions. (1)
The taxes imposed in RCW 48.14.020 and 48.14.0201 do not
apply to premiums and prepayments collected or received for
policies of insurance issued under RCW 48.41.010 through
48.41.210.
(2) In computing tax due under RCW 48.14.020 and
48.14.0201, there may be deducted from taxable premiums
and prepayments the amount of any assessment against the
taxpayer under RCW 48.41.010 through 48.41.210. Any portion of the deduction allowed in this section which cannot be
deducted in a tax year without reducing taxable premiums
below zero may be carried forward and deducted in successive years until the deduction is exhausted. [1995 c 304 § 1;
1987 c 431 § 23.]
Effective date—1995 c 304: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[May 9, 1995]." [1995 c 304 § 2.]
Severability—1987 c 431: See RCW 48.41.910.
Business and occupation tax deductions: RCW 82.04.4329.
48.14.025
48.14.025 Prepayment of tax obligations under RCW
48.14.020. (1) Every insurer with a tax obligation under
RCW 48.14.020 shall make prepayment of the tax obligations under RCW 48.14.020 for the current calendar year's
business, if the sum of the tax obligations under RCW
48.14.020 for the preceding calendar year's business is four
hundred dollars or more.
(2) The commissioner shall credit the prepayment
toward the appropriate tax obligations of the insurer for the
current calendar year under RCW 48.14.020.
(3) The minimum amounts of the prepayments shall be
percentages of the insurer's preceding calendar year's tax
obligation recomputed using the rate in effect for the current
year and shall be paid to the state treasurer through the commissioner's office by the due dates and in the following
amounts:
(a) On or before June 15, forty-five percent;
(b) On or before September 15, twenty-five percent; and
(c) On or before December 15, twenty-five percent.
For good cause demonstrated in writing, the commissioner may approve an amount smaller than the preceding
(2004 Ed.)
Fees and Taxes
calendar year's tax obligation as recomputed for calculating
the insurer's prepayment obligations.
(4) The effect of transferring policies of insurance from
one insurer to another insurer is to transfer the tax prepayment obligation with respect to the policies.
(5) On or before June 1 of each year, the commissioner
shall notify each insurer required to make prepayments in
that year of the amount of each prepayment and shall provide
remittance forms to be used by the insurer. However, an
insurer's responsibility to make prepayments is not affected
by failure of the commissioner to send, or the insurer to
receive, the notice or forms. [1986 c 296 § 2; 1982 c 181 § 4;
1981 c 6 § 1.]
Severability—Effective date—1986 c 296: See notes following RCW
48.14.020.
Severability—1982 c 181: See note following RCW 48.03.010.
48.14.027
48.14.027 Exemption for state health care premiums
before July 1, 1990. The taxes imposed in RCW 48.14.020
do not apply to premiums collected or received before July 1,
1990, for medical and dental coverage purchased under chapter 41.05 RCW. [1988 c 107 § 32.]
Implementation—Effective dates—1988 c 107: See RCW 41.05.901.
48.14.029
48.14.029 Premium tax credit—New employment for
international service activities in eligible areas—Designation of census tracts for eligibility—Records—Tax due
upon ineligibility—Interest assessment—Information
from employment security department. (1) Subject to the
limits in this section, an eligible person is allowed a credit
against the tax due under RCW 48.14.020. The credit is
based on qualified employment positions in eligible areas.
The credit is available to persons who are engaged in international insurance services as defined in this section. In order
to receive the credit, the international insurance services
activities must take place at a business within the eligible
area.
(2)(a) The credit shall equal three thousand dollars for
each qualified employment position created after July 1,
1998, in an eligible area. A credit is earned for the calendar
year the person is hired to fill the position, plus the four subsequent consecutive years, if the position is maintained for
those four years.
(b) Credit may not be taken for hiring of persons into
positions that exist on July 1, 1998. Credit is authorized for
new employees hired for new positions created after July 1,
1998. New positions filled by existing employees are eligible
for the credit under this section only if the position vacated by
the existing employee is filled by a new hire.
(c) When a position is newly created, if it is filled before
July 1st, this position is eligible for the full yearly credit. If it
is filled after June 30th, this position is eligible for half of the
credit.
(d) Credit may be accrued and carried over until it is
used. No refunds may be granted for credits under this section.
(3) For the purposes of this section:
(a) "Eligible area" means: (i) A community empowerment zone under RCW 43.31C.020; or (ii) a contiguous
group of census tracts that meets the unemployment and pov(2004 Ed.)
48.14.030
erty criteria of RCW 43.31C.030 and is designated under
subsection (4) of this section;
(b) "Eligible person" means a person, as defined in RCW
82.04.030, who in an eligible area at a specific location is
engaged in the business of providing international insurance
services;
(c) "International insurance services" means a business
that provides insurance services related directly to the delivery of the service outside the United States or on behalf of
persons residing outside the United States; and
(d) "Qualified employment position" means a permanent
full-time position to provide international insurance services.
If an employee is either voluntarily or involuntarily separated
from employment, the employment position is considered
filled on a full-time basis if the employer is either training or
actively recruiting a replacement employee.
(4) By ordinance, the legislative authority of a city with
population greater than eighty thousand, located in a county
containing no community empowerment zones as designated
under RCW 43.31C.020, may designate a contiguous group
of census tracts within the city as an eligible area under this
section. Each of the census tracts must meet the unemployment and poverty criteria of RCW 43.31C.030. Upon making the designation, the city shall transmit to the department
of revenue a certification letter and a map, each explicitly
describing the boundaries of the census tract. This designation must be made by December 31, 1998.
(5) No application is necessary for the tax credit. The
person must keep records necessary for the department to
verify eligibility under this section. This information
includes:
(a) Employment records for the previous six years;
(b) Information relating to description of international
insurance services activity engaged in at the eligible location
by the person; and
(c) Information relating to customers of international
insurance services activity engaged in at that location by the
person.
(6) If at any time the department finds that a person is not
eligible for tax credit under this section, the amount of taxes
for which a credit has been used shall be immediately due.
The department shall assess interest, but not penalties, on the
credited taxes for which the person is not eligible. The interest shall be assessed at the rate provided for delinquent excise
taxes under chapter 82.32 RCW, shall be assessed retroactively to the date the tax credit was taken, and shall accrue
until the taxes for which a credit has been used are repaid.
(7) The employment security department shall provide to
the department of revenue such information needed by the
department of revenue to verify eligibility under this section.
[2003 c 248 § 3; 1998 c 313 § 3.]
Intent—Findings—Effective date—1998 c 313: See notes following
RCW 82.04.44525.
Business and occupation tax credit: RCW 82.04.44525.
48.14.030 Tax statement. The insurer shall file with
the commissioner as part of its annual statement a statement
of premiums so collected or received according to such form
as shall be prescribed and furnished by the commissioner. In
every such statement the reporting of premiums for tax purposes shall be on a written basis or on a paid-for basis consis48.14.030
[Title 48 RCW—page 69]
48.14.040
Title 48 RCW: Insurance
tent with the basis required by the annual statement. [1947 c
79 § .14.03; Rem. Supp. 1947 § 45.14.03.]
48.14.040
48.14.040 Retaliatory provision. (1) If pursuant to the
laws of any other state or country, any taxes, licenses, fees,
deposits, or other obligations or prohibitions, in the aggregate, or additional to or at a net rate in excess of any such
taxes, licenses, fees, deposits or other obligations or prohibitions imposed by the laws of this state upon like foreign or
alien insurers and their agents and solicitors, are imposed on
insurers of this state and their agents doing business in such
other state or country, a like rate, obligation or prohibition
may be imposed by the commissioner, as to any item or combination of items involved, upon all insurers of such other
state or country and their agents doing business in this state,
so long as such laws remain in force or are so applied.
(2) For the purposes of this section, an alien insurer may
be deemed to be domiciled in the state wherein it has established its principal office or agency in the United States. If no
such office or agency has been established, the domicile of
the alien insurer shall be deemed to be the country under the
laws of which it is formed. [1988 c 248 § 8; 1949 c 190 § 21,
part; 1947 c 79 § .14.04; Rem. Supp. 1949 § 45.14.04.]
48.14.050
48.14.050 "Ocean marine and foreign trade insurances" defined. For the purposes of this code other than as
to chapter 48.19 RCW "ocean marine and foreign trade insurances" shall include only:
(1) Insurances upon vessels, crafts, hulls and of interests
therein or with relation thereto;
(2) Insurance of marine builders' risks, marine war risks,
and contracts of marine protection and indemnity insurance;
(3) Insurance of freights and disbursements pertaining to
a subject of insurance coming within this definition;
(4) Insurance of personal property and interests therein,
in course of exportation from or importation into any country,
or in course of transportation coastwise, including transportation by land, water or air from point of origin to final destination, in respect to, appertaining to, or in connection with, any
and all risks or perils of navigation, transit or transportation,
and while being prepared for and while awaiting shipment,
and during any delays, storage, transshipment or reshipment
incident thereto. [1947 c 79 § .14.05; Rem. Supp. 1947 §
45.14.05.]
48.14.060
48.14.060 Failure to pay tax—Penalty. (1) Any
insurer or taxpayer, as defined in RCW 48.14.0201, failing to
file its tax statement and to pay the specified tax or prepayment of tax on premiums and prepayments for health care
services by the last day of the month in which the tax
becomes due shall be assessed a penalty of five percent of the
amount of the tax; and if the tax is not paid within forty-five
days after the due date, the insurer will be assessed a total
penalty of ten percent of the amount of the tax; and if the tax
is not paid within sixty days of the due date, the insurer will
be assessed a total penalty of twenty percent of the amount of
the tax. The tax may be collected by distraint, and the penalty
recovered by any action instituted by the commissioner in
any court of competent jurisdiction. The amount of any pen[Title 48 RCW—page 70]
alty collected must be paid to the state treasurer and credited
to the general fund.
(2) In addition to the penalties set forth in subsection (1)
of this section, interest will accrue on the amount of the
unpaid tax or prepayment at the maximum legal rate of interest permitted under RCW 19.52.020 commencing sixty-one
days after the tax is due until paid. This interest will not
accrue on taxes imposed under RCW 48.15.120.
(3) The commissioner may revoke the certificate of
authority or registration of any delinquent insurer or taxpayer, and the certificate of authority or registration will not
be reissued until all taxes, prepayments of tax, interest, and
penalties have been fully paid and the insurer or taxpayer has
otherwise qualified for the certificate of authority or registration. [2003 c 341 § 1; 1981 c 6 § 2; 1947 c 79 § .14.06; Rem.
Supp. 1947 § 45.14.06.]
48.14.070
48.14.070 Refunds. In event any person has paid to the
commissioner any tax, license fee or other charge in error or
in excess of that which he is lawfully obligated to pay, the
commissioner shall upon written request made to him make a
refund thereof. A person may only request a refund of taxes
within six years from the date the taxes were paid. A person
may only request a refund of fees or charges other than taxes
within thirteen months of the date the fees or charges were
paid. Refunds may be made either by crediting the amount
toward payment of charges due or to become due from such
person, or by making a cash refund. To facilitate such cash
refunds the commissioner may establish a revolving fund out
of funds appropriated by the legislature for his use. [1979
ex.s. c 130 § 2; 1947 c 79 § .14.07; Rem. Supp. 1947 §
45.14.07.]
48.14.080
48.14.080 Premium tax in lieu of other forms. As to
insurers, other than title insurers and taxpayers under RCW
48.14.0201, the taxes imposed by this title shall be in lieu of
all other taxes, except taxes on real and tangible personal
property, excise taxes on the sale, purchase or use of such
property, and the tax imposed in RCW 82.04.260(12). [1998
c 312 § 1; 1993 sp.s. c 25 § 602; 1993 c 492 § 302; 1949 c 190
§ 21, part; Rem. Supp. 1949 § 45.14.08.]
Effective date—Savings—1998 c 312: See notes following RCW
82.04.332.
Severability—Effective dates—Part headings, captions not law—
1993 sp.s. c 25: See notes following RCW 82.04.230.
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
Short title—Severability—Savings—Captions not law—Reservation of legislative power—Effective dates—1993 c 492: See RCW
43.72.910 through 43.72.915.
48.14.090
48.14.090 Determining amount of direct premium
taxable in this state. In determining the amount of direct
premium taxable in this state, all such premiums written, procured, or received in this state shall be deemed written upon
risks or property resident, situated, or to be performed in this
state except such premiums as are properly allocated or
apportioned and reported as taxable premiums of any other
state or states. [1963 c 195 § 14.]
48.14.095
48.14.095 Unlawful or delinquent insurers or taxpayers—Computing the tax payable—Risks, exposures, or
(2004 Ed.)
Unauthorized Insurers
enrolled participants only partially in state. (1) This section applies to any insurer or taxpayer, as defined in RCW
48.14.0201, violating or failing to comply with RCW
48.05.030(1), 48.17.060 (1) or (2), 48.36A.290(1),
48.44.015(1), or 48.46.027(1).
(2) Except as provided in subsection (7) of this section,
RCW 48.14.020, 48.14.0201, and 48.14.060 apply to insurers
or taxpayers identified in subsection (1) of this section.
(3) If an insurance contract, health care services contract,
or health maintenance agreement covers risks or exposures,
or enrolled participants only partially in this state, the tax
payable is computed on the portion of the premium that is
properly allocated to a risk or exposure located in this state,
or enrolled participants residing in this state.
(4) In determining the amount of taxable premiums
under subsection (3) of this section, all premiums, other than
premiums properly allocated or apportioned and reported as
taxable premiums of another state, that are written, procured,
or received in this state, or that are for a policy or contract
negotiated in this state, are considered to be written on risks
or property resident, situated, or to be performed in this state,
or for health care services to be provided to enrolled participants residing in this state.
(5) Insurance on risks or property resident, situated, or to
be performed in this state, or health coverage for the provision of health care services for residents of this state, is considered to be insurance procured, continued, renewed, or performed in this state, regardless of the location from which the
application is made, the negotiations are conducted, or the
premiums are remitted.
(6) Premiums on risks or exposures that are properly
allocated to federal waters or international waters or under
the jurisdiction of a foreign government are not taxable by
this state.
(7) This section does not apply to premiums on insurance
procured by a licensed surplus line broker under chapter
48.15 RCW. [2003 c 341 § 3.]
48.14.100
48.14.100 Foreign or alien insurers, continuing liability for taxes. Any foreign or alien insurer authorized to do
business in this state which hereafter either withdraws from
the state or has its certificate of authority suspended or
revoked shall continue to pay premium taxes pursuant to this
chapter as to policies upon risks or property resident, situated, or to be performed in this state, which policies were
issued during the time the insurer was authorized in this state.
[1963 c 195 § 15.]
Chapter 48.15
Chapter 48.15 RCW
UNAUTHORIZED INSURERS
Sections
48.15.020
48.15.023
48.15.030
48.15.040
48.15.050
48.15.060
48.15.070
48.15.073
48.15.080
(2004 Ed.)
Solicitation by unauthorized insurer prohibited—Personal liability.
Unauthorized activities—Acts committed in this state—Sanctions.
Validity of contracts illegally effectuated.
"Surplus line" coverage.
Endorsement of contract.
Validity of contracts.
Surplus line brokers—Licensing.
Nonresident surplus line brokers—Licensing—Reciprocity.
Broker may accept business.
48.15.085
48.15.090
48.15.100
48.15.110
48.15.120
48.15.130
48.15.140
48.15.150
48.15.160
48.15.170
48.15.023
Liability of insurer assuming direct risk.
Solvent insurer required.
Record of surplus line broker.
Broker's annual statement.
Premium tax—Surplus lines.
Penalty for default.
Revocation, suspension, or failure to renew broker's license.
Legal process against surplus line insurer.
Exemptions from surplus line requirements.
Records of insureds—Inspection.
48.15.020
48.15.020 Solicitation by unauthorized insurer prohibited—Personal liability. (1) An insurer that is not authorized by the commissioner may not solicit insurance business
in this state or transact insurance business in this state, except
as provided in this chapter.
(2)(a) A person may not, in this state, represent an unauthorized insurer except as provided in this chapter. This subsection does not apply to any adjuster or attorney at law representing an unauthorized insurer from time to time in this
state in his or her professional capacity.
(b) A person, other than a duly licensed surplus line broker acting in good faith under his or her license, who makes a
contract of insurance in this state, directly or indirectly, on
behalf of an unauthorized insurer, without complying with
the provisions of this chapter, is personally liable for the performance of such contract.
(3) Each violation of subsection (2) of this section constitutes a separate offense punishable by a fine of not more
than twenty-five thousand dollars, and the commissioner, at
the commissioner's discretion, may order replacement of policies improperly placed with an unauthorized insurer with
policies issued by an authorized insurer. Violations may
result in suspension or revocation of a license. [2003 c 250 §
2; 1992 c 149 § 1; 1983 1st ex.s. c 32 § 3; 1980 c 102 § 2;
1947 c 79 § .15.02; Rem. Supp. 1947 § 45.15.02.]
Severability—2003 c 250: See note following RCW 48.01.080.
48.15.023
48.15.023 Unauthorized activities—Acts committed
in this state—Sanctions. (1) As used in this section, "person" has the same meaning as in RCW 48.01.070.
(2) For the purpose of this section, an act is committed in
this state if it is committed, in whole or in part, in the state of
Washington, or affects persons or property within the state
and relates to or involves an insurance contract.
(3) Any person who knowingly violates RCW
48.15.020(1) is guilty of a class B felony punishable under
chapter 9A.20 RCW.
(4) Any criminal penalty imposed under this section is in
addition to, and not in lieu of, any other civil or administrative penalty or sanction otherwise authorized under state law.
(5)(a) If the commissioner has cause to believe that any
person has violated the provisions of RCW 48.15.020(1), the
commissioner may:
(i) Issue and enforce a cease and desist order in accordance with the provisions of RCW 48.02.080; and/or
(ii) Assess a civil penalty of not more than twenty-five
thousand dollars for each violation, after providing notice and
an opportunity for a hearing in accordance with chapters
34.05 and 48.04 RCW.
(b) Upon failure to pay a civil penalty when due, the
attorney general may bring a civil action on behalf of the
commissioner to recover the unpaid penalty. Any amounts
[Title 48 RCW—page 71]
48.15.030
Title 48 RCW: Insurance
collected by the commissioner must be paid to the state treasurer for the account of the general fund. [2003 c 250 § 3.]
Severability—2003 c 250: See note following RCW 48.01.080.
48.15.030
48.15.030 Validity of contracts illegally effectuated.
A contract of insurance effectuated by an unauthorized
insurer in violation of the provisions of this code shall be
voidable except at the instance of the insurer. [1947 c 79 §
.15.03; Rem. Supp. 1947 § 45.15.03.]
48.15.040
48.15.040 "Surplus line" coverage. If certain insurance coverages cannot be procured from authorized insurers,
such coverages, hereinafter designated as "surplus lines,"
may be procured from unauthorized insurers subject to the
following conditions:
(1) The insurance must be procured through a licensed
surplus line broker.
(2) The insurance must not be procurable, after diligent
effort has been made to do so from among a majority of the
insurers authorized to transact that kind of insurance in this
state.
(3) Coverage shall not be procured from an unauthorized
insurer for the purpose of securing a lower premium rate than
would be accepted by any authorized insurer nor to secure
any other competitive advantage.
(4) The commissioner may by regulation establish the
degree of effort required to comply with subsections (2) and
(3) of this section.
(5) At the time of the procuring of any such insurance an
affidavit setting forth the facts referred to in subsections (2)
and (3) of this section must be executed by the surplus line
broker. Such affidavit shall be filed with the commissioner
within thirty days after the insurance is procured. [1983 1st
ex.s. c 32 § 4; 1947 c 79 § .15.04; Rem. Supp. 1947 §
45.15.04.]
48.15.050
48.15.050 Endorsement of contract. Every insurance
contract procured and delivered as a surplus line coverage
pursuant to this chapter shall have stamped upon it and be initialed by or bear the name of the surplus line broker who procured it, the following:
"This contract is registered and delivered as a surplus
line coverage under the insurance code of the state of Washington, enacted in 1947." [1947 c 79 § .15.05; Rem. Supp.
1947 § 45.15.05.]
48.15.060
48.15.060 Validity of contracts. Insurance contracts
procured as surplus line coverage from unauthorized insurers
in accordance with this chapter shall be fully valid and
enforceable as to all parties, and shall be given recognition in
all matters and respects to the same effect as like contracts
issued by authorized insurers. [1947 c 79 § .15.06; Rem.
Supp. 1947 § 45.15.06.]
48.15.070
48.15.070 Surplus line brokers—Licensing. Any
individual while a resident of this state, or any firm or any
corporation that has in its employ a qualified individual who
is a resident of this state and who is authorized to exercise the
powers of the firm or corporation, deemed by the commissioner to be competent and trustworthy, and while maintain[Title 48 RCW—page 72]
ing an office at a designated location in this state, may be
licensed as a surplus line broker in accordance with this section.
(1) Application to the commissioner for the license shall
be made on forms furnished by the commissioner. As part of,
or in connection with, this application, the applicant shall furnish information concerning his or her identity, including fingerprints for submission to the Washington state patrol, the
federal bureau of investigation, and any governmental
agency or entity authorized to receive this information for a
state and national criminal history background check; personal history; experience; business records; purposes; and
other pertinent information, as the commissioner may reasonably require.
(2) The license shall expire if not timely renewed. Surplus line brokers licenses shall be valid for the time period
established by the commissioner unless suspended or
revoked at an earlier date.
(3) Prior to issuance of license the applicant shall file
with the commissioner a bond in favor of the state of Washington in the penal sum of twenty thousand dollars, with
authorized corporate sureties approved by the commissioner,
conditioned that he or she will conduct business under the
license in accordance with the provisions of this chapter and
that he or she will promptly remit the taxes provided by RCW
48.15.120. The licensee shall maintain such bond in force for
as long as the license remains in effect.
(4) Every applicant for a surplus line broker's license or
for the renewal of a surplus line broker's license shall file
with the application or request for renewal a bond in favor of
the people of the state of Washington, executed by an authorized corporate surety approved by the commissioner, in the
amount of one hundred thousand dollars and shall be the
bonding requirement for new licensees. The licensee shall
maintain such bond in force while so licensed. The bond may
be continuous in form, and total aggregate liability on the
bond may be limited to the amount stated in the bond. The
bond shall be contingent on the accounting by the surplus line
broker to any person requesting such broker to obtain insurance, for moneys or premiums collected in connection therewith. A bond issued in accordance with RCW 48.17.250 or
with this subsection will satisfy the requirements of both
RCW 48.17.250 and this subsection if the limit of liability is
not less than the greater of the requirement of RCW
48.17.250 or the requirement of this subsection.
(5) Any bond issued pursuant to subsection (3) or (4) of
this section shall remain in force until the surety is released
from liability by the commissioner, or until the bond is canceled by the surety. Without prejudice to any liability accrued
prior to such cancellation, the surety may cancel the bond
upon thirty days' advance notice in writing filed with the
commissioner.
(6) If in the process of verifying fingerprints under subsection (1) of this section, business records, or other information the commissioner's office incurs fees or charges from
another governmental agency or from a business firm, the
amount of the fees or charges shall be paid to the commissioner's office by the applicant.
(7) For the purposes of this section, a "qualified individual" is a natural person who has met all the requirements that
must be met by an individual surplus line broker. [2002 c 227
(2004 Ed.)
Unauthorized Insurers
§ 3; 1994 c 131 § 3; 1983 1st ex.s. c 32 § 24; 1982 c 181 § 5;
1981 c 199 § 1; 1980 c 102 § 3; 1979 ex.s. c 130 § 3; 1977
ex.s. c 182 § 2; 1959 c 225 § 4; 1947 c 79 § .15.07; Rem.
Supp. 1947 § 45.15.07.]
Effective date—2002 c 227: See note following RCW 48.06.040.
Severability—1982 c 181: See note following RCW 48.03.010.
48.15.073
48.15.073 Nonresident surplus line brokers—Licensing—Reciprocity. (1) The commissioner may license as a
surplus line broker a person who is otherwise qualified under
this code but who is not a resident of this state, if by the laws
of the state or province of his or her residence or domicile a
similar privilege is extended to residents of this state.
(2) A person under subsection (1) of this section must
meet the same qualifications, other than residency, as any
other person seeking to be licensed as a surplus line broker
under this chapter. A person granted a nonresident surplus
line broker's license must have all the same responsibilities as
any other surplus line broker and is subject to the (a) commissioner's supervision as though resident in this state and (b)
rules adopted under this chapter. [2001 c 91 § 1.]
48.15.080
48.15.080 Broker may accept business. A licensed
surplus line broker may accept and place surplus line business for any insurance agent or broker licensed in this state
for the kind of insurance involved, and may compensate such
agent or broker therefor. [1947 c 79 § .15.08; Rem. Supp.
1947 § 45.15.08.]
48.15.085
48.15.085 Liability of insurer assuming direct risk.
(1) If pursuant to the surplus lines provisions of this chapter
an insurer has assumed direct risk under a coverage and the
premium therefor has been paid to the broker who placed
such insurance, the insurer shall be liable to the insured for
unearned premiums payable upon cancellation of the insurance, whether or not the broker is indebted to the insurer for
such premium or otherwise. This provision shall not affect
rights as between the insurer and the broker.
(2) Each such insurer shall be deemed to have subjected
itself to this section by acceptance of such direct risk. [1959
c 225 § 5.]
48.15.090
48.15.090 Solvent insurer required. (1) A surplus line
broker shall not knowingly place surplus line insurance with
insurers unsound financially. The surplus line broker shall
ascertain the financial condition of the unauthorized insurer,
and maintain written evidence thereof, before placing insurance therewith. The surplus line broker shall not so insure
with:
(a) Any foreign insurer having less than six million dollars of capital and surplus or substantially equivalent capital
funds, of which not less than one million five hundred thousand dollars is capital; or
(b) Any alien insurer having less than six million dollars
of capital and surplus or substantially equivalent capital
funds. By January 1, 1992, this requirement shall be
increased to twelve million five hundred thousand dollars. By
January 1, 1993, this requirement shall be further increased to
fifteen million dollars.
(2004 Ed.)
48.15.100
Such alien insurers must have in force in the United
States an irrevocable trust fund, in a qualified United States
financial institution, on behalf of United States policyholders
of not less than five million four hundred thousand dollars
and consisting of cash, securities, letters of credit, or of
investments of substantially the same character and quality as
those which are eligible investments for the capital and statutory reserves of admitted insurers authorized to write like
kinds of insurance in this state.
There must be on file with the commissioner a copy of
the trust, certified by the trustee, evidencing a subsisting trust
fund deposit having an expiration date which at no time shall
be less than five years after the date of creation of the trust.
Such trust fund shall be included in the calculation of the
insurer's capital and surplus or its equivalents; or
(c) Any group including incorporated and individual
insurers maintaining a trust fund of less than fifty million dollars as security to the full amount thereof for all policyholders
in the United States of each member of the group, and such
trust shall likewise comply with the terms and conditions
established in (b) of this subsection for an alien insurer; or
(d) Any insurance exchange created by the laws of an
individual state, maintaining capital and surplus, or substantially equivalent capital funds of less than fifty million dollars
in the aggregate. For insurance exchanges which maintain
funds for the protection of all insurance exchange policyholders, each individual syndicate shall maintain minimum capital and surplus, or the substantial equivalent thereof, of not
less than six million dollars. In the event the insurance
exchange does not maintain funds for the protection of all
insurance exchange policyholders, each individual syndicate
shall meet the minimum capital and surplus requirements of
(a) of this subsection.
(2) The commissioner may, by rule:
(a) Increase the financial requirements under subsection
(1) of this section by not more than one million dollars in any
twelve-month period, but in no case may the requirements
exceed fifteen million dollars; or
(b) Prescribe the terms under which the foregoing financial requirements may be waived in circumstances where
insurance cannot be otherwise procured on risks located in
this state.
(3) For any violation of this section the surplus line broker may be fined not less than one hundred dollars or more
than five thousand dollars, and in addition to or in lieu thereof
the surplus line broker's license may be revoked, suspended,
or nonrenewed. [1997 c 89 § 1; 1994 c 86 § 2; 1991 sp.s. c 5
§ 2; 1980 c 102 § 4; 1975 1st ex.s. c 266 § 6; 1969 ex.s. c 241
§ 10; 1955 c 303 § 5; 1947 c 79 § .15.09; Rem. Supp. 1947 §
45.15.09.]
Effective date—1997 c 89: "This act takes effect June 1, 1998." [1997
c 89 § 2.]
Effective date—1994 c 86: See note following RCW 48.12.160.
Effective date—1991 sp.s. c 5: See note following RCW 48.05.340.
Severability—1975 1st ex.s. c 266: See note following RCW
48.01.010.
48.15.100
48.15.100 Record of surplus line broker. (1) Each
licensed surplus line broker shall keep a full and true record
of each surplus line contract procured by him including a
[Title 48 RCW—page 73]
48.15.110
Title 48 RCW: Insurance
copy of the daily report, if any, showing such of the following
items as may be applicable:
(a) Amount of the insurance;
(b) Gross premiums charged;
(c) Return premium paid, if any;
(d) Rate of premium charged upon the several items of
property;
(e) Effective date of the contract, and the terms thereof;
(f) Name and address of the insurer;
(g) Name and address of the insured;
(h) Brief general description of property insured and
where located;
(i) Other information as may be required by the commissioner.
(2) All such records as to any particular transaction shall
be kept available and open to the inspection of the commissioner at any business time during the five years next following the date of completion of such transaction. [1955 c 303 §
6; 1947 c 79 § .15.10; Rem. Supp. 1947 § 45.15.10.]
48.15.110
48.15.110 Broker's annual statement. (1) Each surplus line broker shall on or before the first day of March of
each year file with the commissioner a verified statement of
all surplus line insurance transacted by him during the preceding calendar year.
(2) The statement shall be on forms as prescribed and
furnished by the commissioner and shall show:
(a) Aggregate of net premiums;
(b) Additional information as required by the commissioner. [1955 c 303 § 7; 1947 c 79 § .15.11; Rem. Supp. 1947
§ 45.15.11.]
48.15.120
48.15.120 Premium tax—Surplus lines. (1) On or
before the first day of March of each year each surplus line
broker shall remit to the state treasurer through the commissioner a tax on the premiums, exclusive of sums collected to
cover federal and state taxes and examination fees, on surplus
line insurance subject to tax transacted by him during the preceding calendar year as shown by his annual statement filed
with the commissioner, and at the same rate as is applicable
to the premiums of authorized foreign insurers under this
code. Such tax when collected shall be credited to the general
fund.
(2) If a surplus line policy covers risks or exposures only
partially in this state the tax so payable shall be computed
upon the proportion of the premium which is properly allocable to the risks or exposures located in this state. [1947 c 79
§ .15.12; Rem. Supp. 1947 § 45.15.12.]
48.15.130
48.15.130 Penalty for default. If any surplus line broker fails to file his or her annual statement, or fails to remit
the tax provided by RCW 48.15.120, by the last day of the
month in which the tax becomes due, the surplus line broker
must pay the penalties provided in RCW 48.14.060(1). The
tax may be collected by distraint, or the tax and fine may be
recovered by an action instituted by the commissioner in any
court of competent jurisdiction. Any fine collected by the
commissioner must be paid to the state treasurer and credited
to the general fund. [2003 c 341 § 2; 1983 1st ex.s. c 32 § 5;
[Title 48 RCW—page 74]
1980 c 102 § 5; 1947 c 79 § .15.13; Rem. Supp. 1947 §
45.15.13.]
48.15.140
48.15.140 Revocation, suspension, or failure to renew
broker's license. (1) The commissioner may revoke, suspend, or refuse to renew any surplus line broker's license:
(a) If the surplus line broker fails to file his annual statement or to remit the tax as required by this chapter; or
(b) If the surplus line broker fails to maintain an office in
this state, or to keep the records, or to allow the commissioner
to examine his records as required by this chapter; or
(c) For any of the causes for which a broker's license may
be revoked under chapter 48.17 RCW.
(2) The commissioner may suspend or revoke any such
license whenever he deems suspension or revocation to be for
the best interests of the people of this state.
(3) The procedures provided by this code for the suspension or revocation of general brokers' licenses shall be applicable to suspension or revocation of a surplus line broker's
license.
(4) No broker whose license has been so revoked shall
again be so licensed within one year thereafter, nor until any
fines or delinquent taxes owing by him have been paid.
[1980 c 102 § 6; 1947 c 79 § .15.14; Rem. Supp. 1947 §
45.15.14.]
48.15.150
48.15.150 Legal process against surplus line insurer.
(1) An unauthorized insurer shall be sued, upon any cause of
action arising in this state under any contract issued by it as a
surplus line contract, pursuant to this chapter, in the superior
court of the county in which the cause of action arose.
(2) Service of legal process against the insurer may be
made in any such action by service upon the commissioner of
duplicate copies of such legal process either by a person competent to serve a summons or by registered mail or certified
mail with return receipt requested. At the time of such service
the plaintiff shall pay to the commissioner ten dollars, taxable
as costs in the action. The commissioner shall forthwith mail
the documents of process served, or a true copy thereof, to the
insurer at its principal place of business last known to the
commissioner, or to the person designated by the insurer for
that purpose in the most recent document filed with the commissioner, on forms prescribed by the commissioner, by prepaid registered or certified mail with return receipt requested.
The insurer shall have forty days from the date of service
upon the commissioner within which to plead, answer, or
otherwise defend the action. Upon service of process upon
the commissioner in accordance with this provision, the court
shall be deemed to have jurisdiction in personam of the
insurer.
(3) An unauthorized insurer issuing such policy shall be
deemed thereby to have authorized service of process against
it in the manner and to the effect as provided in this section.
Any such policy shall contain a provision designating the
commissioner as the person upon whom service of process
may be made. [1979 ex.s. c 199 § 4; 1963 c 195 § 16; 1955 c
303 § 8; 1947 c 79 § .15.15; Rem. Supp. 1947 § 45.15.15.]
48.15.160
48.15.160 Exemptions from surplus line requirements. (1) The provisions of this chapter controlling the
(2004 Ed.)
Deposits of Insurers
placing of insurance with unauthorized insurers shall not
apply to reinsurance or to the following insurances when so
placed by licensed agents or brokers of this state:
(a) Ocean marine and foreign trade insurances.
(b) Insurance on subjects located, resident, or to be performed wholly outside of this state, or on vehicles or aircraft
owned and principally garaged outside this state.
(c) Insurance on operations of railroads engaged in transportation in interstate commerce and their property used in
such operations.
(d) Insurance of aircraft owned or operated by manufacturers of aircraft, or of aircraft operated in schedule interstate
flight, or cargo of such aircraft, or against liability, other than
workers' compensation and employer's liability, arising out of
the ownership, maintenance or use of such aircraft.
(2) Agents and brokers so placing any such insurance
with an unauthorized insurer shall keep a full and true record
of each such coverage in detail as required of surplus line
insurance under this chapter and shall meet the requirements
imposed upon a surplus line broker pursuant to RCW
48.15.090 and any regulations adopted thereunder. The
record shall be preserved for not less than five years from the
effective date of the insurance and shall be kept available in
this state and open to the examination of the commissioner.
The agent or broker shall furnish to the commissioner at the
commissioner's request and on forms as designated and furnished by him or her a report of all such coverages so placed
in a designated calendar year. [1987 c 185 § 23; 1985 c 264
§ 5; 1949 c 190 § 22; 1947 c 79 § .15.16; Rem. Supp. 1949 §
45.15.16.]
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
48.15.170
48.15.170 Records of insureds—Inspection. Every
person for whom insurance has been placed with an unauthorized insurer pursuant to or in violation of this chapter shall,
upon the commissioner's order, produce for his examination
all policies and other documents evidencing the insurance,
and shall disclose to the commissioner the amount of the
gross premiums paid or agreed to be paid for the insurance.
For each refusal to obey such order, such person shall be liable to a fine of not more than five hundred dollars. [1947 c 79
§ .15.17; Rem. Supp. 1947 § 45.15.17.]
Chapter 48.16
Chapter 48.16 RCW
DEPOSITS OF INSURERS
Sections
48.16.010
48.16.020
48.16.030
48.16.050
48.16.060
48.16.070
48.16.080
48.16.090
48.16.100
48.16.110
48.16.120
48.16.130
(2004 Ed.)
Deposits of insurers—In general.
Deposits to be held in trust.
Securities eligible for deposit.
Commissioner's receipt—Records.
Transfer of securities.
Depositaries—Designation.
Liability for safekeeping.
Dividends and substitutions.
Release of deposits—Generally.
Release of existing deposits.
Voluntary excess deposits.
Immunity from levy.
48.16.060
48.16.010
48.16.010 Deposits of insurers—In general. The commissioner shall accept deposits of securities or funds by
insurers as follows:
(1) Deposits in amount as required to be made as prerequisite to a certificate of authority to transact insurance in this
state.
(2) Deposits of domestic or alien insurers in amount as
required to be made by the laws of other states as prerequisite
for authority to transact insurance in such other states.
(3) Deposits in amounts as result from application of the
retaliatory provision, RCW 48.14.040.
(4) Deposits in other additional amounts permitted to be
made by this code. [1955 c 86 § 3; 1947 c 79 § .16.01; Rem.
Supp. 1947 § 45.16.01.]
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.
48.16.020
48.16.020 Deposits to be held in trust. Each such
deposit shall be held by the commissioner in trust for the protection of all policyholders in the United States of the insurer
making it; except that deposits of alien insurers shall be so
held for the security of such insurer's obligations arising out
of its insurance transactions in the United States, and except
as to deposits the purpose of which may be further limited
pursuant to the retaliatory provision, RCW 48.14.040. [1955
c 86 § 4; 1947 c 79 § .16.02; Rem. Supp. 1947 § 45.16.02.]
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.
48.16.030
48.16.030 Securities eligible for deposit. All such
deposits shall consist of cash funds or public obligations as
specified in RCW 48.13.040; except, that with respect to
deposits held on account of registered policies heretofore
issued, the commissioner may accept deposit of such other
kinds of securities as are expressly required to be deposited
by the terms of such policies. [1955 c 86 § 5; 1947 c 79 §
.16.03; Rem. Supp. 1947 § 45.16.03.]
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.
48.16.050
48.16.050 Commissioner's receipt—Records. (1) The
commissioner shall deliver to the insurer a receipt for all
funds and securities so deposited by it.
(2) The commissioner or the designated depositary shall
keep a record in permanent form of all funds and securities so
deposited. [1955 c 86 § 6; 1947 c 79 § .16.05; Rem. Supp.
1947 § 45.16.05.]
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.
48.16.060
48.16.060 Transfer of securities. (1) No transfer of
any funds or security so held on deposit, whether voluntary or
by operation of law, shall be valid unless approved in writing
by the commissioner.
(2) A statement of each such transfer shall be entered on
the records of the commissioner or designated depositary,
showing the name of the insurer from whose deposit such
transfer is made, the name of the transferee, and the par value
of the securities so transferred. [1955 c 86 § 7; 1947 c 79 §
.16.06; Rem. Supp. 1947 § 45.16.06.]
[Title 48 RCW—page 75]
48.16.070
Title 48 RCW: Insurance
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.
48.16.070
48.16.070 Depositaries—Designation. The commissioner may designate any solvent trust company or other solvent financial institution having trust powers as the commissioner's depositary to receive and hold any deposit of securities. Any deposit so held shall be at the expense of the insurer.
Any solvent financial institution having trust powers, the
deposits of which are insured by the Federal Deposit Insurance Corporation, may be designated as the commissioner's
depositary to receive and hold any deposit of funds. All funds
deposited shall be fully insured by the Federal Deposit Insurance Corporation. For purposes of this section, "solvent
financial institution" means any national or state-chartered
commercial bank or trust company, savings bank, or savings
association, or branch or branches thereof, having trust powers located in this state and lawfully engaged in business.
[1998 c 25 § 1; 1985 c 264 § 6; 1955 c 86 § 8; 1947 c 79 §
.16.07; Rem. Supp. 1947 § 45.16.07.]
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.
for any such release of any deposit or part thereof so made by
him in good faith.
(3) All releases of deposits or any part thereof shall be
made to the person then entitled thereto upon proof of title
satisfactory to the commissioner.
(4) Deposits held on account of title insurers are subject
further to the provisions of chapter 48.29 RCW. [1947 c 79 §
.16.10; Rem. Supp. 1947 § 45.16.10.]
48.16.110
48.16.110 Release of existing deposits. Any part of
any deposit of an insurer held by the commissioner which is
in amount in excess of the deposit required or permitted to be
made by such insurer under this code, shall, upon written
order of the commissioner, be released; except, that no
deposit held on account of any registered policies heretofore
issued by the insurer shall be released except in accordance
with the conditions under which such deposit was made.
[1955 c 86 § 10; 1947 c 79 § .16.11; Rem. Supp. 1947 §
45.16.11.]
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.
48.16.120
48.16.080
48.16.080 Liability for safekeeping. The state of
Washington shall be responsible for the safekeeping and
return of all funds and securities deposited pursuant to this
chapter with the commissioner or in any such depositary so
designated by him. [1955 c 86 § 9; 1947 c 79 § .16.08; Rem.
Supp. 1947 § 45.16.08.]
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.
48.16.090
48.16.090 Dividends and substitutions. While solvent
and complying with this code an insurer shall be entitled:
(1) To collect and receive interest and dividends accruing on the securities so held on deposit for its account, and
(2) From time to time exchange and substitute for any of
such securities, other securities eligible for deposit and of at
least equal value. [1947 c 79 § .16.09; Rem. Supp. 1947 §
45.16.09.]
48.16.120 Voluntary excess deposits. An insurer may
deposit and maintain on deposit with the commissioner funds
and eligible securities in amount exceeding its required
deposit under this code by not more than one hundred thousand dollars, for the purpose of absorbing fluctuations in the
value of securities held in its required deposit, and to facilitate the exchange and substitution of such required securities.
During the solvency of the insurer any such excess deposit or
any part thereof shall be released to it upon its request. During the insolvency of the insurer such excess deposit shall be
released only as provided in RCW 48.16.100. [1955 c 86 §
11; 1947 c 79 § .16.12; Rem. Supp. 1947 § 45.16.12.]
Effective date—Supervision of transfer—1955 c 86: See notes following RCW 48.05.080.
48.16.130
48.16.130 Immunity from levy. No judgment creditor
or other claimant of an insurer shall levy upon any deposit
held pursuant to this chapter, or upon any part thereof. [1947
c 79 § .16.13; Rem. Supp. 1947 § 45.16.13.]
48.16.100
48.16.100 Release of deposits—Generally. (1) Any
such required deposit shall be released in these instances
only:
(a) Upon extinguishment of all liabilities of the insurer
for the security of which the deposit is held, by reinsurance
contract or otherwise.
(b) If any such deposit or portion thereof is no longer
required under this code.
(c) If the deposit has been made pursuant to the retaliatory provision, RCW 48.14.040, it shall be released in whole
or in part when no longer so required.
(d) Upon proper order of a court of competent jurisdiction the deposit shall be released to the receiver, conservator,
rehabilitator, or liquidator of the insurer for whose account
the deposit is held.
(2) No such release shall be made except on application
to and written order of the commissioner made upon proof
satisfactory to him of the existence of one of such grounds
therefor. The commissioner shall have no personal liability
[Title 48 RCW—page 76]
Chapter 48.17
Chapter 48.17 RCW
AGENTS, BROKERS, SOLICITORS,
AND ADJUSTERS
Sections
48.17.010
48.17.020
48.17.030
48.17.040
48.17.050
48.17.055
48.17.060
48.17.063
48.17.065
48.17.067
48.17.070
48.17.090
48.17.100
48.17.110
48.17.120
"Agent" defined.
"Broker" defined.
"Solicitor" defined.
Service representatives.
"Adjuster" defined.
"Insurance education provider" defined.
License required—Exceptions.
Unlicensed activities—Acts committed in this state—Sanctions.
Application of chapter to health care service contractors and
health maintenance organizations.
Determining whether authorization exists—Burden on solicitor, agent, or broker.
General qualifications for license.
Application for license.
One filing of personal data sufficient.
Examination of applicants.
Scope of examinations.
(2004 Ed.)
Agents, Brokers, Solicitors, and Adjusters
48.17.125
48.17.130
48.17.150
48.17.160
48.17.170
48.17.180
48.17.190
48.17.200
48.17.210
48.17.230
48.17.240
48.17.250
48.17.260
48.17.270
48.17.280
48.17.290
48.17.300
48.17.310
48.17.320
48.17.330
48.17.340
48.17.380
48.17.390
48.17.410
48.17.420
48.17.430
48.17.450
48.17.460
48.17.470
48.17.475
48.17.480
48.17.490
48.17.500
48.17.510
48.17.520
48.17.530
48.17.535
48.17.540
48.17.550
48.17.560
48.17.563
48.17.565
48.17.568
48.17.591
48.17.600
Examination questions—Confidentiality—Penalties.
Examinations—Form, time of, fee.
Agent's and broker's qualifications—Continuing education
requirements.
Appointment of agents—Revocation—Expiration—Renewal.
Form and content of licenses.
Licenses to firms and corporations.
Limited licenses.
One license required by agent.
Minimum license combinations.
Agent placing rejected business.
Scope of broker's license.
Broker's bond.
Broker's authority—Commissions.
Agent-broker combinations—Compensation—Disclosure.
Solicitor's qualifications.
Solicitor's license—Application.
Solicitor's license fee—Custody—Cancellation.
Limitations upon solicitors.
Responsibility of employing agent or broker.
Nonresident agents and brokers—Reciprocity.
Service of process against nonresident agent or broker.
Adjusters—Qualifications for license.
Adjusters—Separate licenses.
Authority of adjuster.
Agent may adjust—Nonresident adjusters.
Public adjuster's bond.
Place of business.
Display of license.
Records of agents, brokers, adjusters.
Licensee to reply promptly to inquiry by commissioner.
Reporting and accounting for premiums.
Sharing commissions.
Expiration and renewal of licenses.
Temporary licenses.
Temporary licenses—Duration—Limitations.
Refusal, suspension, revocation of licenses.
License or certificate suspension—Noncompliance with support order—Reissuance.
Procedure to suspend, revoke, or refuse—Effect of conviction
of felony.
Duration of suspension.
Fines may be imposed.
Insurance education providers—Commissioner's approval—
Renewal fee.
Insurance education providers—Violations—Costs awarded.
Insurance education providers—Bond.
Termination of agency contract—Effect on insured.
Separation of premium funds.
Agent on commission not subject to unemployment compensation: RCW
50.04.230.
48.17.060
48.17.030
48.17.030 "Solicitor" defined. "Solicitor" means an
individual authorized by an agent or broker to solicit applications for insurance as a representative of such agent or broker
and to collect premiums in connection therewith. An individual employed by, and devoting full time to clerical work with
incidental taking of insurance applications and receiving premiums in the office of the agent or broker is not deemed to be
a solicitor if his compensation is not related to the volume of
such applications, insurances, or premiums. [1947 c 79 §
.17.03; Rem. Supp. 1947 § 45.17.03.]
48.17.040
48.17.040 Service representatives. Individuals other
than an officer, manager, or general agent of the insurer,
employed on salary by an insurer or general agent to work
with and assist agents in soliciting, negotiating, and effectuating insurance in such insurer or in the insurers represented
by the general agent, are deemed to be service representatives
and are not required to be licensed. [1947 c 79 § .17.04; Rem.
Supp. 1947 § 45.17.04.]
48.17.050
48.17.050 "Adjuster" defined. (1) "Adjuster" means
any person who, for compensation as an independent contractor or as an employee of an independent contractor, or for fee
or commission, investigates or reports to his principal relative
to claims arising under insurance contracts, on behalf solely
of either the insurer or the insured. An attorney at law who
adjusts insurance losses from time to time incidental to the
practice of his profession, or an adjuster of marine losses, or
a salaried employee of an insurer or of a general agent, is not
deemed to be an "adjuster" for the purposes of this chapter.
(2) "Independent adjuster" means such an adjuster representing the interests of the insurer.
(3) "Public adjuster" means an adjuster employed by and
representing solely the financial interests of the insured
named in the policy. [1947 c 79 § .17.05; Rem. Supp. 1947 §
45.17.05.]
48.17.055
Binders: RCW 48.18.230.
Illegal inducements: RCW 48.30.150.
Independent agency contract: Chapter 48.18 RCW.
Rebating: RCW 48.30.140.
"Twisting" prohibited: RCW 48.30.180.
Unfair practices: Chapter 48.30 RCW.
48.17.010 "Agent" defined. "Agent" means any person appointed by an insurer to solicit applications for insurance on its behalf. If authorized so to do, an agent may effectuate insurance contracts. An agent may collect premiums on
insurances so applied for or effectuated. [1985 c 264 § 7;
1981 c 339 § 9; 1947 c 79 § .17.01; Rem. Supp. 1947 §
45.17.01.]
48.17.010
48.17.020 "Broker" defined. "Broker" means any person who, on behalf of the insured, for compensation as an
independent contractor, for commission, or fee, and not being
an agent of the insurer, solicits, negotiates, or procures insurance or reinsurance or the renewal or continuance thereof, or
in any manner aids therein, for insureds or prospective
insureds other than himself. [1947 c 79 § .17.02; Rem. Supp.
1947 § 45.17.02.]
48.17.020
(2004 Ed.)
48.17.055 "Insurance education provider" defined.
"Insurance education provider" means any insurer, health
care service contractor, health maintenance organization,
professional association, educational institution created by
Washington statutes, or vocational school licensed under
Title 28C RCW or independent contractor to which the commissioner has granted authority to conduct and certify completion of a course satisfying the insurance education requirements of RCW 48.17.150. [1989 c 323 § 2.]
Effective date—1989 c 323: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1,
1989." [1989 c 323 § 8.]
48.17.060
48.17.060 License required—Exceptions. (1) A person may not act as or hold himself or herself out to be an
agent, broker, solicitor, or adjuster in this state unless
licensed by the commissioner.
(2) An agent, solicitor, or broker may not solicit or take
applications for, procure, or place for others any kind of
insurance for which he or she is not then licensed.
(3) This section does not apply with respect to any person securing and forwarding information required for the
purposes of group credit life and credit disability insurance or
[Title 48 RCW—page 77]
48.17.063
Title 48 RCW: Insurance
credit casualty insurance against loss or damage resulting
from failure of debtors to pay their obligations in connection
with an extension of credit and such other credit life and disability insurance or credit casualty insurance against loss or
damage resulting from failure of debtors to pay their obligations as the commissioner shall determine, and where no
commission or other compensation is payable on account of
the securing and forwarding of such information. However,
the reimbursement of a creditor's actual expenses for securing
and forwarding information required for the purposes of such
group insurance will not be considered a commission or other
compensation if such reimbursement does not exceed three
dollars per certificate issued, or in the case of a monthly premium plan extending beyond twelve months, not to exceed
three dollars per loan transaction revision per year. [2003 c
250 § 4; 1995 c 214 § 1; 1975 1st ex.s. c 266 § 7; 1955 c 303
§ 9; 1947 c 79 § .17.06; Rem. Supp. 1947 § 45.17.06.]
Severability—2003 c 250: See note following RCW 48.01.080.
Severability—1975 1st ex.s. c 266: See note following RCW
48.01.010.
48.17.067
48.17.067 Determining whether authorization
exists—Burden on solicitor, agent, or broker. Any solicitor, agent, or broker soliciting, negotiating, or procuring an
application for insurance or health care services in this state
must make a good faith effort to determine whether the entity
that is issuing the coverage is:
(1) Authorized to transact insurance or health coverage
in this state; or
(2) Conducting business through a surplus lines broker
licensed under chapter 48.15 RCW. [2003 c 250 § 6.]
Severability—2003 c 250: See note following RCW 48.01.080.
48.17.070
48.17.070 General qualifications for license. For the
protection of the people of this state the commissioner shall
not issue or renew any such license except in compliance
with this chapter, nor to, nor to be exercised by, any person
found by him to be untrustworthy, or incompetent, or who
has not established to the satisfaction of the commissioner
that he is qualified therefor in accordance with this chapter.
[1947 c 79 § .17.07; Rem. Supp. 1947 § 45.17.07.]
48.17.063
48.17.063 Unlicensed activities—Acts committed in
this state—Sanctions. (1) As used in this section, "person"
has the same meaning as in RCW 48.01.070.
(2) For the purpose of this section, an act is committed in
this state if it is committed, in whole or in part, in the state of
Washington, or affects persons or property within the state
and relates to or involves an insurance contract, health care
services contract, or health maintenance agreement.
(3) Any person who knowingly violates RCW
48.17.060(1) is guilty of a class B felony punishable under
chapter 9A.20 RCW.
(4) Any person who knowingly violates RCW
48.17.060(2) is guilty of a class B felony punishable under
chapter 9A.20 RCW.
(5) Any criminal penalty imposed under this section is in
addition to, and not in lieu of, any other civil or administrative penalty or sanction otherwise authorized under state law.
(6)(a) If the commissioner has cause to believe that any
person has violated the provisions of RCW 48.17.060 (1) or
(2), the commissioner may:
(i) Issue and enforce a cease and desist order in accordance with the provisions of RCW 48.02.080;
(ii) Suspend or revoke a license; and/or
(iii) Assess a civil penalty of not more than twenty-five
thousand dollars for each violation, after providing notice and
an opportunity for a hearing in accordance with chapters
34.05 and 48.04 RCW.
(b) Upon failure to pay a civil penalty when due, the
attorney general may bring a civil action on behalf of the
commissioner to recover the unpaid penalty. Any amounts
collected by the commissioner must be paid to the state treasurer for the account of the general fund. [2003 c 250 § 5.]
48.17.090
48.17.090 Application for license. (1) Application for
a license to be an agent, broker, solicitor, or adjuster shall be
made to the commissioner upon forms furnished by the commissioner. As a part of or in connection with any such application, the applicant shall furnish information concerning his
or her identity, including fingerprints for submission to the
Washington state patrol, the federal bureau of investigation,
and any governmental agency or entity authorized to receive
this information for a state and national criminal history
background check, personal history, experience, business
record, purposes, and other pertinent facts, as the commissioner may reasonably require.
(2) Persons resident in the United States but not in Washington may apply for such a license on a form prepared by the
national association of insurance commissioners or others, if
those forms are approved by the commissioner by rule. An
applicant shall also furnish any other information required to
be submitted but not provided for in that form.
(3) Any person willfully misrepresenting any fact
required to be disclosed in any such application shall be liable
to penalties as provided by this code.
(4) If in the process of verifying fingerprints under subsection (1) of this section, business records, or other information the commissioner's office incurs fees or charges from
another governmental agency or from a business firm, the
amount of such fees or charges shall be paid to the commissioner's office by the applicant. [2002 c 227 § 2; 2001 c 56 §
1; 1982 c 181 § 6; 1981 c 339 § 10; 1967 c 150 § 15; 1947 c
79 § .17.09; Rem. Supp. 1947 § 45.17.09.]
Effective date—2002 c 227: See note following RCW 48.06.040.
Severability—1982 c 181: See note following RCW 48.03.010.
Severability—2003 c 250: See note following RCW 48.01.080.
48.17.100
48.17.065
48.17.065 Application of chapter to health care service contractors and health maintenance organizations.
The provisions of this chapter shall apply to agents of health
care service contractors and health maintenance organizations. [1983 c 202 § 7.]
[Title 48 RCW—page 78]
48.17.100 One filing of personal data sufficient. (1)
The filing of personal data by an individual in connection
with one application for an agent's license shall be sufficient,
regardless of the number of insurers to be represented by the
agent or the number of subsequent applications by the same
applicant.
(2004 Ed.)
Agents, Brokers, Solicitors, and Adjusters
(2) The commissioner may, for his information from
time to time require any licensed agent, or solicitor, or broker, or adjuster, to supply him with the information called for
in an application for license. [1947 c 79 § .17.10; Rem. Supp.
1947 § 45.17.10.]
48.17.110
48.17.110 Examination of applicants. (1) Each applicant for license as an agent, broker, solicitor, or adjuster shall,
prior to the issuance of any such license, personally take and
pass to the satisfaction of the examining authority, an examination given as a test of that person's qualifications and competence, but this requirement shall not apply to:
(a) Applicants for limited licenses under RCW
48.17.190, at the discretion of the commissioner.
(b) Applicants who within the two year period next preceding date of application have been licensed as a resident in
this state under a license requiring qualifications similar to
qualifications required by the license applied for or who have
successfully completed a course of study recognized as a
mark of distinction by the insurance industry and who are
deemed by the commissioner to be fully qualified and competent.
(c) Applicants for license as a nonresident agent or as a
nonresident broker or as a nonresident adjuster who are duly
licensed in their state of residence and who are deemed by the
commissioner to be fully qualified and competent for a similar license in this state.
(d) Applicants for an agent's or solicitor's license covering the same kinds of insurance as an agent's or solicitor's
license then held by them.
(e) Applicants for an adjuster's license who for a period
of one year, a portion of which was in the year next preceding
the date of application, have been a full time salaried
employee of an insurer or of a general agent to adjust, investigate, or report claims arising under insurance contracts.
(2) Any person licensed as an insurance broker by this
state prior to June 8, 1967, who is otherwise qualified to be a
licensed insurance broker, shall be entitled to renew that person's broker's license by payment of the applicable fee for
such of the broker's licenses authorized by RCW 48.17.240,
as that person shall elect, without taking any additional examination, except as provided in subsection (3).
(3) The commissioner may at any time require any
licensed agent, broker, solicitor, or adjuster to take and successfully pass an examination testing the licensee's competence and qualifications as a condition to the continuance or
renewal of a license, if the licensee has been guilty of violation of this code, or has so conducted affairs under an insurance license as to cause the commissioner reasonably to
desire further evidence of the licensee's qualifications. [1990
1st ex.s. c 3 § 2; 1977 ex.s. c 182 § 3; 1967 c 150 § 16; 1965
ex.s. c 70 § 19; 1963 c 195 § 17; 1955 c 303 § 10; 1949 c 190
§ 23; 1947 c 79 § .17.11; Rem. Supp. 1949 § 45.17.11.]
48.17.120
48.17.120 Scope of examinations. (1) Each such examination shall be of sufficient scope and difficulty to test the
applicant's knowledge relative to the kinds of insurance
which may be dealt with under the license applied for, and of
the duties and responsibilities of, and laws of this state applicable to, such a licensee, and so as reasonably to assure that a
(2004 Ed.)
48.17.150
passing score indicates that the applicant is qualified from the
standpoint of knowledge and education.
(2) Examination as to ocean marine and related coverages may be waived by the commissioner as to any applicant
deemed by the commissioner to be qualified by past experience to deal in such insurances.
(3) The commissioner shall prepare, or approve, and
make available to insurers, general agents, brokers, agents,
and applicants a printed manual specifying in general terms
the subjects which may be covered in any examination for a
particular license. [1989 c 323 § 6; 1981 c 111 § 2; 1967 c
150 § 17; 1955 c 303 § 11; 1947 c 79 § .17.12; Rem. Supp.
1947 § 45.17.12.]
Effective date—1989 c 323: See note following RCW 48.17.055.
48.17.125
48.17.125 Examination questions—Confidentiality—
Penalties. It is unlawful for any unauthorized person to
remove, reproduce, duplicate, or distribute in any form, any
question(s) used by the state of Washington to determine the
qualifications and competence of insurance agents, brokers,
solicitors, or adjusters required by Title 48 RCW to be
licensed. This section shall not prohibit an insurance education provider from creating and using sample test questions in
courses approved pursuant to RCW 48.17.150.
Any person violating this section shall be subject to penalties as provided by RCW 48.01.080 and 48.17.560. [1989
c 323 § 1.]
Effective date—1989 c 323: See note following RCW 48.17.055.
48.17.130
48.17.130 Examinations—Form, time of, fee. (1) The
answers of the applicant to any such examination shall be
written by the applicant under the examining authority's
supervision, and any such written examination may be supplemented by oral examination at the discretion of the examining authority.
(2) Examinations shall be given at such times and places
within this state as the examining authority deems necessary
reasonably to serve the convenience of both the examining
authority and applicants.
(3) The examining authority may require a waiting
period of reasonable duration before giving a new examination to an applicant who has failed to pass a previous similar
examination.
(4) For each examination taken, the commissioner shall
collect in advance the fee provided in RCW 48.14.010. In the
event the commissioner contracts with an independent testing
service for examination development and administration, the
examination fee may be collected directly by such testing service. [1981 c 111 § 3; 1967 c 150 § 18; 1947 c 79 § .17.13;
Rem. Supp. 1947 § 45.17.13.]
48.17.150
48.17.150 Agent's and broker's qualifications—Continuing education requirements. (1) To qualify for an
agent's or broker's license an applicant must otherwise comply with this code therefor and must
(a) be eighteen years of age or over, if an individual;
(b) be a bona fide resident of and actually reside in this
state, or if a corporation, be other than an insurer and maintain a lawfully established place of business in this state,
except as provided in RCW 48.17.330;
[Title 48 RCW—page 79]
48.17.160
Title 48 RCW: Insurance
(c) be empowered to be an agent or broker, as the case
may be, under its members' agreement, if a firm, or by its articles of incorporation, if a corporation;
(d) complete such minimum educational requirements
for the issuance of an agent's license for the kinds of insurance specified in RCW 48.17.210 as may be required by regulation issued by the commissioner;
(e) successfully pass any examination as required under
RCW 48.17.110;
(f) be a trustworthy person;
(g) if for an agent's license, be appointed as its agent by
one or more authorized insurers, subject to issuance of the
license; and
(h) if for broker's license, have had at least two years
experience either as an agent, solicitor, adjuster, general
agent, broker, or as an employee of insurers or representatives of insurers, and special education or training of sufficient duration and extent reasonably to satisfy the commissioner that he possesses the competence necessary to fulfill
the responsibilities of broker.
(2) The commissioner shall by regulation establish minimum continuing education requirements for the renewal or
reissuance of a license to an agent or a broker: PROVIDED,
That the commissioner shall require that continuing education courses will be made available on a statewide basis in
order to ensure that persons residing in all geographical areas
of this state will have a reasonable opportunity to attend such
courses. The continuing education requirements shall be
appropriate to the license for the kinds of insurance specified
in RCW 48.17.210: PROVIDED FURTHER, That the continuing education requirements may be waived by the commissioner for good cause shown.
(3) If the commissioner finds that the applicant is so
qualified and that the license fee has been paid, the license
shall be issued. Otherwise, the commissioner shall refuse to
issue the license. [1994 c 131 § 4; 1988 c 248 § 9; 1979 ex.s.
c 269 § 7; 1971 ex.s. c 292 § 47; 1967 c 150 § 19; 1961 c 194
§ 4; 1947 c 79 § .17.15; Rem. Supp. 1947 § 45.17.15.]
Effective date, implementation—1979 ex.s. c 269: See note following
RCW 48.14.010.
Severability—1971 ex.s. c 292: See note following RCW 26.28.010.
48.17.160
48.17.160 Appointment of agents—Revocation—
Expiration—Renewal. (1) Each insurer on appointing an
agent in this state shall file written notice thereof with the
commissioner on forms as prescribed and furnished by the
commissioner, and shall pay the filing fee therefor as provided in RCW 48.14.010. The commissioner shall return the
appointment of agent form to the insurer for distribution to
the agent. The commissioner may adopt regulations establishing alternative appointment procedures for individuals
within licensed firms, corporations, or sole proprietorships
who are empowered to exercise the authority conferred by the
firm, corporate, or sole proprietorship license.
(2) Each appointment shall be effective until the agent's
license expires or is revoked, the appointment has expired, or
written notice of termination of the appointment is filed with
the commissioner, whichever occurs first.
(3) When the appointment is revoked by the insurer,
written notice of such revocation shall be given to the agent
[Title 48 RCW—page 80]
and a copy of the notice of revocation shall be mailed to the
commissioner.
(4) Revocation of an appointment by the insurer shall be
deemed to be effective as of the date designated in the notice
as being the effective date if the notice is actually received by
the agent prior to such designated date; otherwise, as of the
earlier of the following dates:
(a) The date such notice of revocation was received by
the agent.
(b) The date such notice, if mailed to the agent at his last
address of record with the insurer, in due course should have
been received by the agent.
(5) Appointments expire if not timely renewed. Each
insurer shall pay the renewal fee set forth for each agent holding an appointment on the renewal date assigned the agents of
the insurer by the commissioner. The commissioner, by rule,
shall determine renewal dates. If a staggered system is used,
fees shall be prorated in the conversion to a staggered system.
[1994 c 131 § 5; 1990 1st ex.s. c 3 § 3; 1979 ex.s. c 269 § 2;
1967 c 150 § 20; 1959 c 225 § 6; 1955 c 303 § 13; 1947 c 79
§ .17.16; Rem. Supp. 1947 § 45.17.16.]
Effective date, implementation—1979 ex.s. c 269: See note following
RCW 48.14.010.
48.17.170
48.17.170 Form and content of licenses. Agents',
solicitors', adjusters' and brokers' licenses shall be in the form
and contain the essential information prescribed by the commissioner. [1979 ex.s. c 269 § 3; 1947 c 79 § .17.17; Rem.
Supp. 1947 § 45.17.17.]
Effective date, implementation—1979 ex.s. c 269: See note following
RCW 48.14.010.
48.17.180
48.17.180 Licenses to firms and corporations. (1) A
firm or corporation may be licensed as an agent, adjuster, or
broker if each individual empowered to exercise the authority
conferred by the corporate or firm license is also licensed.
Exercise or attempted exercise of the powers of the firm or
corporation by an unlicensed person, with the knowledge or
consent of the firm or corporation, shall constitute cause for
the revocation or suspension of the license.
(2) Licenses shall be issued in a trade name only upon
proof satisfactory to the commissioner that the trade name
has been lawfully registered.
(3) For the purpose of this section, a firm shall include a
duly licensed individual acting as a sole proprietorship having associated licensees authorized to act on the proprietor's
behalf in the proprietor's business or trade name. [1990 1st
ex.s. c 3 § 4; 1979 ex.s. c 269 § 4; 1947 c 79 § .17.18; Rem.
Supp. 1947 § 45.17.18.]
Effective date, implementation—1979 ex.s. c 269: See note following
RCW 48.14.010.
Title insurance agents, separate licenses for individuals not required: RCW
48.29.170.
48.17.190
48.17.190 Limited licenses. The commissioner may
issue limited licenses to the following:
(1) Persons selling transportation tickets of a common
carrier of persons or property who shall act as such agents
only as to transportation ticket policies of disability insurance
or baggage insurance on personal effects.
(2004 Ed.)
Agents, Brokers, Solicitors, and Adjusters
48.17.270
48.17.200 One license required by agent. An agent is
required to have but one license regardless of the number of
appointments by insurers the agent may have. [1979 ex.s. c
269 § 5; 1955 c 303 § 14; 1947 c 79 § .17.20; Rem. Supp.
1947 § 45.17.20.]
force while so licensed a bond in favor of the people of the
state of Washington, executed by an authorized corporate
surety approved by the commissioner, in the amount of
twenty thousand dollars. If the applicant is a firm or corporation, the bond shall be in the amount of twenty thousand dollars plus five thousand dollars for the second and five thousand dollars for each additional individual empowered and
designated in the license to exercise the powers conferred
thereby. The bond may be continuous in form, and total
aggregate liability on the bond may be limited to the required
amount of the bond. The bond shall be contingent on the
accounting by the broker to any person requesting the broker
to obtain insurance, for moneys or premiums collected in
connection therewith.
(2) Any such bond shall remain in force until the surety
is released from liability by the commissioner, or until the
bond is canceled by the surety. Without prejudice to any liability accrued prior to such cancellation, the surety may cancel the bond upon thirty days advance notice in writing filed
with the commissioner. [1979 ex.s. c 269 § 8; 1977 ex.s. c
182 § 4; 1947 c 79 § .17.25; Rem. Supp. 1947 § 45.17.25.]
Effective date, implementation—1979 ex.s. c 269: See note following
RCW 48.14.010.
Effective date, implementation—1979 ex.s. c 269: See note following
RCW 48.14.010.
(2) Compensated master policyholders of credit life and
credit accident and health insurance and credit casualty insurance against loss or damage resulting from failure of debtors
to pay their obligations, retail dealers compensated by any
such master policyholders, or the authorized representative(s)
of either.
(3) Persons selling special or unique policies of insurance covering goods sold or leased from a primary business
or activity other than the transaction of insurance or covering
collateral securing loans from a primary business or activity
other than the transaction of insurance if, in the commissioner's discretion, such limited license would safeguard and
promote the public interest. [1995 c 214 § 2; 1979 c 138 § 1;
1967 c 150 § 21; 1947 c 79 § .17.19; Rem. Supp. 1947 §
45.17.19.]
48.17.200
48.17.210
48.17.210 Minimum license combinations. Except as
provided in RCW 48.17.190, an agent's license shall not be
issued unless it includes, and the applicant is qualified for,
one or more of the following kinds of insurance:
(1) Casualty.
(2) Disability.
(3) Life.
(4) Marine and transportation.
(5) Property.
(6) Surety.
(7) Vehicle. [1947 c 79 § .17.21; Rem. Supp. 1947 §
45.17.21.]
48.17.260
48.17.260 Broker's authority—Commissions. (1) A
broker, as such, is not an agent or other representative of an
insurer, and does not have power, by his own acts, to bind the
insurer upon any risk or with reference to any insurance contract.
(2) An insurer or agent shall have the right to pay to a
broker licensed under this code, or under the laws of any
other state or province, and such broker shall have the right to
receive from the insurer or agent, the customary commissions
upon insurances placed in the insurer by the broker. [1949 c
190 § 24; 1947 c 79 § .17.26; Rem. Supp. 1949 § 45.17.26.]
48.17.270
48.17.230
48.17.230 Agent placing rejected business. A licensed
agent appointed by an insurer as to life or disability insurances may, if with the knowledge and consent of such
insurer, place any portion of a life or disability risk which has
been rejected by such insurer, with other authorized insurers
without being licensed as to such other insurers. Any agent so
placing rejected business becomes the agent for the company
issuing the insurance with respect to that business just as if it
had appointed such person as its agent. [1988 c 248 § 10;
1947 c 79 § .17.23; Rem. Supp. 1947 § 45.17.23.]
48.17.240
48.17.240 Scope of broker's license. A broker's license
may be issued to cover the following lines of insurance:
(a) All lines of insurance; or
(b) All lines except life, which shall be designated as a
casualty-property broker's license; or
(c) Life and disability only. [1967 c 150 § 22; 1947 c 79
§ .17.24; Rem. Supp. 1947 § 45.17.24.]
48.17.250
48.17.250 Broker's bond. (1) Every applicant for a
broker's license or for the renewal of a broker's license existing on the effective date of this code shall file with the application or request for renewal and shall thereafter maintain in
(2004 Ed.)
48.17.270 Agent-broker combinations—Compensation—Disclosure. (1) A licensed agent may be licensed as a
broker and be a broker as to insurers for which the licensee is
not then appointed as agent. A licensed broker may be
licensed as and be an agent as to insurers appointing such
agent. The sole relationship between a broker and an insurer
as to which the licensee is appointed as an agent shall, as to
transactions arising during the existence of such agency
appointment, be that of insurer and agent.
(2) Unless the agency-insurer agreement provides to the
contrary, an insurance agent licensed as a broker may, with
respect to property and casualty insurance, receive the following compensation:
(a) A commission paid by the insurer;
(b) A fee paid by the insured; or
(c) A combination of commission paid by the insurer and
a fee paid by the insured from which a broker may offset or
reimburse the insured for all or part of the fee.
If the compensation received by an agent who is also
licensed as a broker and who is dealing directly with the
insured includes a fee, the full amount of compensation,
including an explanation of any offset or reimbursement,
must be disclosed in writing, signed by the broker and the
insured, and the writing must be retained by the broker for not
[Title 48 RCW—page 81]
48.17.280
Title 48 RCW: Insurance
less than five years. [1994 c 203 § 1; 1993 c 455 § 1; 1981 c
339 § 13; 1947 c 79 § .17.27; Rem. Supp. 1947 § 45.17.27.]
48.17.280
48.17.280 Solicitor's qualifications. The commissioner shall license as a solicitor an individual only who
meets the following requirements:
(1) Is a resident of this state.
(2) Intends to and does make the soliciting and handling
of insurance business under his license his principal vocation.
(3) Is to represent and be employed by but one licensed
agent or broker.
(4) Has passed any examination as required under this
chapter.
(5) Is otherwise qualified under this code. [1947 c 79 §
.17.28; Rem. Supp. 1947 § 45.17.28.]
48.17.290
48.17.290 Solicitor's license—Application. The commissioner shall issue a solicitor's license only upon application by the applicant and the request of the agent or broker to
be represented, upon such forms as the commissioner shall
prescribe and furnish. [1947 c 79 § .17.29; Rem. Supp. 1947
§ 45.17.29.]
48.17.300
48.17.300 Solicitor's license fee—Custody—Cancellation. (1) The fee for issuance or renewal of a solicitor's
license shall be paid by the agent or broker by whom the
solicitor is employed.
(2) The solicitor's license shall be delivered to and shall
remain in the possession of the employing agent or broker.
Upon termination of such employment, the license shall likewise terminate and shall be returned to the commissioner for
cancellation. [1947 c 79 § .17.30; Rem. Supp. 1947 §
45.17.30.]
48.17.310
48.17.310 Limitations upon solicitors. (1) A solicitor's
license shall not cover any kind of insurance for which the
agent or broker by whom he is employed is not then licensed.
(2) A solicitor shall not have power to bind an insurer
upon or with reference to any risk or insurance contract, or to
countersign insurance contracts.
(3) Any individual while licensed as a solicitor shall not
be licensed as an agent or broker. [1947 c 79 § .17.31; Rem.
Supp. 1947 § 45.17.31.]
48.17.320
48.17.320 Responsibility of employing agent or broker. All business transacted by a solicitor under his license
shall be in the name of the agent or broker by whom he is
employed and the agent or broker shall be responsible for all
acts or omissions of the solicitor within the scope of such
employment. [1947 c 79 § .17.32; Rem. Supp. 1947 §
45.17.32.]
48.17.330
48.17.330 Nonresident agents and brokers—Reciprocity. (1) The commissioner may license as an agent or as
a broker, a person who is not a resident of or domiciled in this
state and who holds a corresponding license issued by the
state or province of his or her residence or domicile, subject
to RCW 48.17.530, if by the laws of the state or province of
his or her residence or domicile a similar privilege is
extended to residents of or corporations domiciled in this
[Title 48 RCW—page 82]
state. As used in this section, "state" means a state of the
United States, the District of Columbia, any territory of the
United States, Puerto Rico, Guam, American Samoa, the
Trust Territory of the Pacific Islands, the Virgin Islands, and
the Northern Mariana Islands; and "province" means a province of Canada.
(2) Any such licensee shall be subject to the same obligations and limitations, and to the commissioner's supervision
as though resident or domiciled in this state, subject to RCW
48.14.040.
(3) No such person shall be so licensed unless he or she
files the power of attorney provided for in RCW 48.17.340,
and, if a corporation, it must have complied with the laws of
this state governing the admission of foreign corporations.
[2001 c 56 § 2; 1973 1st ex.s. c 107 § 1; 1955 c 303 § 28;
1947 c 79 § .17.33; Rem. Supp. 1947 § 45.17.33.]
Severability—1973 1st ex.s. c 107: "If any provision of this 1973
amendatory act, or its application to any person or circumstance is held
invalid, the remainder of the act, or the application of the provision to other
persons or circumstances is not affected." [1973 1st ex.s. c 107 § 5.]
48.17.340
48.17.340 Service of process against nonresident
agent or broker. (1) Each licensed nonresident agent or broker shall appoint the commissioner as his attorney to receive
service of legal process issued against the agent or broker in
this state upon causes of action arising within this state. Service upon the commissioner as attorney shall constitute effective legal service upon the agent or broker.
(2) The appointment shall be irrevocable for as long as
there could be any cause of action against the agent or broker
arising out of his insurance transactions in this state.
(3) Duplicate copies of such legal process against such
agent or broker shall be served upon the commissioner either
by a person competent to serve a summons, or through registered mail. At the time of such service the plaintiff shall pay
to the commissioner ten dollars, taxable as costs in the action.
(4) Upon receiving such service, the commissioner shall
forthwith send one of the copies of the process, by registered
mail with return receipt requested, to the defendant agent or
broker at his last address of record with the commissioner.
(5) The commissioner shall keep a record of the day and
hour of service upon him of all such legal process. No proceedings shall be had against the defendant agent or broker,
and such defendant shall not be required to appear, plead, or
answer until the expiration of forty days after the date of service upon the commissioner. [1981 c 339 § 14; 1947 c 79 §
.17.34; Rem. Supp. 1947 § 45.17.34.]
48.17.380
48.17.380 Adjusters—Qualifications for license. The
commissioner shall license as an adjuster only an individual,
firm, or corporation which has otherwise complied with this
code therefor and the individual or responsible officer of the
firm or corporation has furnished evidence satisfactory to the
commissioner that he is qualified as follows:
(1) Is eighteen or more years of age.
(2) Is a bona fide resident of this state, or is a resident of
a state which will permit residents of this state to act as
adjusters in such other state.
(3) Is a trustworthy person.
(4) Has had experience or special education or training
with reference to the handling of loss claims under insurance
(2004 Ed.)
Agents, Brokers, Solicitors, and Adjusters
contracts, of sufficient duration and extent reasonably to
make him competent to fulfill the responsibilities of an
adjuster.
(5) Has successfully passed any examination as required
under this chapter.
(6) If for a public adjuster's license, has filed the bond
required by RCW 48.17.430. [1981 c 339 § 15; 1971 ex.s. c
292 § 48; 1947 c 79 § .17.38; Rem. Supp. 1947 § 45.17.38.]
Severability—1971 ex.s. c 292: See note following RCW 26.28.010.
48.17.390
48.17.390 Adjusters—Separate licenses. The commissioner may license an individual, firm, or corporation as
an independent adjuster or as a public adjuster, and separate
licenses shall be required for each type of adjuster. An individual, firm, or corporation may be concurrently licensed
under separate licenses as an independent adjuster and as a
public adjuster. The full license fee shall be paid for each
such license. [1981 c 339 § 16; 1947 c 79 § .17.39; Rem.
Supp. 1947 § 45.17.39.]
48.17.410
48.17.410 Authority of adjuster. An adjuster shall
have authority under his license only to investigate or report
to his principal upon claims as limited under RCW 48.17.050
on behalf only of the insurers if licensed as an independent
adjuster, or on behalf only of insureds if licensed as a public
adjuster. An adjuster licensed concurrently as both an independent and a public adjuster shall not represent both the
insurer and the insured in the same transaction. [1947 c 79 §
.17.41; Rem. Supp. 1947 § 45.17.41.]
48.17.470
(3) Such bond shall be required of any adjuster acting as
a public adjuster as of the effective date of this code, or thereafter under any unexpired license heretofore issued. [1977
ex.s. c 182 § 5; 1947 c 79 § .17.43; Rem. Supp. 1947 §
45.17.43.]
48.17.450
48.17.450 Place of business. (1) Every licensed agent,
broker, and adjuster, other than an agent licensed for life or
disability insurances only, shall have and maintain in this
state, or, if a nonresident agent or nonresident broker, in this
state or in the state of the licensee's domicile, a place of business accessible to the public. Such place of business shall be
that wherein the agent or broker principally conducts transactions under that person's licenses. The address of the licensee's place of business shall appear on all of that person's
licenses, and the licensee shall promptly notify the commissioner of any change thereof. A licensee maintaining more
than one place of business in this state shall obtain a duplicate
license or licenses for each additional such place, and shall
pay the full fee therefor.
(2) Any notice, order, or written communication from
the commissioner to a person licensed under this chapter
which directly affects the person's license shall be sent by
mail to the person's last residential address, if an individual,
and to the person's last business address, if licensed as a firm
or corporation, as such address is shown in the commissioner's licensing records. A licensee shall promptly notify
the commissioner of any change of residential or business
address. [1990 1st ex.s. c 3 § 5; 1988 c 248 § 11; 1953 c 197
§ 6; 1947 c 79 § .17.45; Rem. Supp. 1947 § 45.17.45.]
48.17.420
48.17.420 Agent may adjust—Nonresident adjusters.
(1) On behalf of and as authorized by an insurer for which he
is licensed as agent, an agent may from time to time act as an
adjuster and investigate and report upon claims without being
required to be licensed as an adjuster.
(2) No license by this state shall be required of a nonresident independent adjuster, for the adjustment in this state of
a single loss, or of losses arising out of a catastrophe common
to all such losses. [1947 c 79 § .17.42; Rem. Supp. 1947 §
45.17.42.]
48.17.460
48.17.460 Display of license. (1) The license or
licenses of each agent, other than licenses as to life or disability insurances only, or of each broker or adjuster shall be displayed in a conspicuous place in that part of his place of business which is customarily open to the public.
(2) The license of a solicitor shall be so displayed in the
place of business of the agent or broker by whom he is
employed. [1947 c 79 § .17.46; Rem. Supp. 1947 §
45.17.46.]
48.17.470
48.17.430
48.17.430 Public adjuster's bond. (1) Prior to the issuance of a license as public adjuster, the applicant therefor
shall file with the commissioner and shall thereafter maintain
in force while so licensed a surety bond in favor of the people
of the state of Washington, executed by an authorized corporate surety approved by the commissioner, in the amount of
five thousand dollars. The bond may be continuous in form,
and total aggregate liability on the bond may be limited to the
payment of five thousand dollars. The bond shall be contingent on the accounting by the adjuster to any insured whose
claim he is handling, for moneys or any settlement received
in connection therewith.
(2) Any such bond shall remain in force until the surety
is released from liability by the commissioner, or until canceled by the surety. Without prejudice to any liability accrued
prior to cancellation, the surety may cancel a bond upon
thirty days advance notice in writing filed with the commissioner.
(2004 Ed.)
48.17.470 Records of agents, brokers, adjusters. (1)
Every agent, or broker, or adjuster shall keep at his address as
shown on his license, a record of all transactions consummated under his license. This record shall be in organized
form and shall include:
(a) If an agent or broker,
(i) a record of each insurance contract procured, issued,
or countersigned, together with the names of the insurers and
insureds, the amount of premium paid or to be paid, and a
statement of the subject of the insurance;
(ii) the names of any other licensees from whom business is accepted, and of persons to whom commissions or
allowances of any kind are promised or paid.
(b) If an adjuster, a record of each investigation or
adjustment undertaken or consummated, and a statement of
any fee, commission, or other compensation received or to be
received by the adjuster on account of such investigation or
adjustment.
[Title 48 RCW—page 83]
48.17.475
Title 48 RCW: Insurance
(c) Such other and additional information as shall be customary, or as may reasonably be required by the commissioner.
(2) All such records as to any particular transaction shall
be kept available and open to the inspection of the commissioner at any business time during the five years immediately
after the date of the completion of such transaction.
(3) This section shall not apply as to life or disability
insurances. [1947 c 79 § .17.47; Rem. Supp. 1947 §
45.17.47.]
48.17.475
48.17.475 Licensee to reply promptly to inquiry by
commissioner. Every insurance agent, broker, adjuster, or
other person licensed under this chapter shall promptly reply
in writing to an inquiry of the commissioner relative to the
business of insurance. [1967 c 150 § 13.]
48.17.480
48.17.480 Reporting and accounting for premiums.
(1) An agent or any other representative of an insurer
involved in the procuring or issuance of an insurance contract
shall report to the insurer the exact amount of consideration
charged as premium for such contract, and such amount shall
likewise be shown in the contract and in the records of the
agent. Each willful violation of this provision is a misdemeanor.
(2) All funds representing premiums or return premiums
received by an agent, solicitor or broker, shall be so received
in his or her fiduciary capacity, and shall be promptly
accounted for and paid to the insured, insurer, or agent as
entitled thereto.
(3) Any person licensed under this chapter who receives
funds which belong to or should be paid to another person as
a result of or in connection with an insurance transaction is
deemed to have received the funds in a fiduciary capacity.
The licensee shall promptly account for and pay the funds to
the person entitled to the funds.
(4) Any agent, solicitor, broker, adjuster or other person
licensed under this chapter who, not being lawfully entitled
thereto, diverts or appropriates funds received in a fiduciary
capacity or any portion thereof to his or her own use, is guilty
of theft under chapter 9A.56 RCW. [2003 c 53 § 269; 1988 c
248 § 12; 1947 c 79 § .17.48; Rem. Supp. 1947 § 45.17.48.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
48.17.490
48.17.490 Sharing commissions. (1) No agent, general
agent, solicitor, or broker shall compensate or offer to compensate in any manner any person other than an agent, general agent, solicitor, or broker, licensed in this or any other
state or province, for procuring or in any manner helping to
procure applications for or to place insurance in this state.
This provision shall not prohibit the payment of compensation not contingent upon volume of business transacted, in
the form of salaries to the regular employees of such agent,
general agent, solicitor or broker, or the payment for services
furnished by an unlicensed person who does not participate in
the transaction of insurance in any way requiring licensing as
an agent, solicitor, broker, or adjuster and who is not compensated on any basis dependent upon a sale of insurance
being made.
[Title 48 RCW—page 84]
(2) No such licensee shall be promised or allowed any
compensation on account of the procuring of applications for
or the placing of kinds of insurance which he himself is not
then licensed to procure or place.
(3) The commissioner shall suspend or revoke the
licenses of all licensees participating in any violation of this
section. [1988 c 248 § 13; 1947 c 79 § .17.49; Rem. Supp.
1947 § 45.17.49.]
48.17.500
48.17.500 Expiration and renewal of licenses. (1) All
agents' licenses issued by the commissioner shall be valid for
the time period established by the commissioner unless:
(a) Suspended or revoked; or
(b) The licensee ceases to hold a valid appointment by an
insurer.
(2) All brokers', solicitors', and adjusters' licenses shall
be valid for the time period established by the commissioner
unless suspended or revoked at an earlier date.
(3) The commissioner, by rule, shall determine renewal
dates for licenses of all agents, brokers, solicitors, and adjusters. If a staggered system is used, fees shall be prorated in the
conversion to a staggered system.
(4) Subject to the right of the commissioner to suspend,
revoke, or refuse to renew any agent's, broker's, solicitor's, or
adjuster's license as provided in this code, any such license
may be renewed into another like period by filing with the
commissioner on or before the expiration date a written
request, by or on behalf of the licensee, for such renewal
accompanied by payment of the renewal fee as specified in
RCW 48.14.010. An agent or broker shall make and file
renewal requests on behalf of his solicitors.
If the request and fee for renewal of an agent's, broker's,
solicitor's, or adjuster's license is filed with the commissioner
prior to expiration of the existing license, the licensee may
continue to act under such license, unless sooner revoked or
suspended, until the issuance of a renewal license or until the
expiration of fifteen days after the commissioner has refused
to renew the license and has mailed order of such refusal to
the licensee. Any request for renewal not so filed until after
date of expiration may be considered by the commissioner as
an application for a new license.
(5) As to all licenses, if request for renewal of an agent's
license or appointment or broker's, solicitor's, or adjuster's
license or payment of the fee is not received by the commissioner prior to the expiration date as required under subsection (4) of this section, the insurer or applicant for renewal
shall pay to the commissioner and the commissioner shall
collect, in addition to the regular fee, a surcharge as follows:
For the first thirty days or part thereof of delinquency the surcharge shall be fifty percent of the fee; for all delinquencies
extending more than thirty days, the surcharge shall be one
hundred percent of the fee. This subsection shall not be
deemed to exempt any person from any penalty provided by
law for transacting business without a valid and subsisting
license or appointment, or affect the commissioner's right, at
his discretion, to consider such delinquent application as one
for a new license or appointment. [1979 ex.s. c 269 § 6; 1977
ex.s. c 182 § 6; 1965 ex.s. c 70 § 20; 1957 c 193 § 9; 1953 c
197 § 7; 1947 c 79 § .17.50; Rem. Supp. 1947 § 45.17.50.]
Effective date, implementation—1979 ex.s. c 269: See note following
RCW 48.14.010.
(2004 Ed.)
Agents, Brokers, Solicitors, and Adjusters
48.17.510 Temporary licenses. (1) The commissioner
may issue an agent's or broker's temporary license in the following circumstances:
(a) To the surviving spouse or next of kin or to the
administrator or executor, or the employee of the administrator or executor, of a licensed agent or broker becoming
deceased.
(b) To the spouse, next of kin, employee, or legal guardian of a licensed agent or broker becoming disabled because
of sickness, insanity, or injury.
(c) To a surviving member of a firm or surviving officer
or employee of a corporation licensed as agent or broker upon
the death of an individual designated in the firm or corporation's license to exercise powers thereunder.
(2) An individual to be eligible for any such temporary
license must be qualified as for a permanent license except as
to experience, training, or the taking of any examination.
(3) Any fee paid to the commissioner for issuance of a
temporary license as specified in RCW 48.14.010 shall be
credited toward the fee required for a permanent license
which is issued to replace the temporary license prior to the
expiration of such temporary license. [1982 c 181 § 7; 1955
c 303 § 15; 1953 c 197 § 8; 1947 c 79 § .17.51; Rem. Supp.
1947 § 45.17.51.]
48.17.510
Severability—1982 c 181: See note following RCW 48.03.010.
48.17.520 Temporary licenses—Duration—Limitations. (1) No such temporary license shall be effective for
more than ninety days in any twelve month period, subject to
extension for an additional period of not more than ninety
days at the commissioner's discretion and for good cause
shown. The commissioner may refuse so to license again any
person who has previously been so licensed.
(2) An individual requesting temporary agent's license
on account of death or disability of an agent, shall not be so
licensed for any insurer as to which such agent was not
licensed at the time of death or commencement of disability.
[1985 c 264 § 8; 1953 c 197 § 9; 1947 c 79 § .17.52; Rem.
Supp. 1947 § 47.17.52.]
48.17.520
48.17.535
ance contract; or has engaged or is about to engage in any
fraudulent transaction.
(f) If the licensee or applicant has been guilty of "twisting," as defined in RCW 48.30.180, or of rebating, as defined
in chapter 48.30 RCW.
(g) If the licensee or applicant has been convicted, by
final judgment, of a felony.
(h) If the licensee or applicant has shown himself to be,
and is so deemed by the commissioner, incompetent, or
untrustworthy, or a source of injury and loss to the public.
(i) If the licensee has dealt with, or attempted to deal
with, insurances, or to exercise powers relative to insurance
outside the scope of his licenses.
(2) If any natural person named under a firm or corporate
license, or application therefor, commits or has committed
any act or fails or has failed to perform any duty which is a
ground for the commissioner to revoke, suspend or refuse to
issue or renew the license or application for license, the commissioner may revoke, suspend, refuse to renew, or refuse to
issue:
(a) The license, or application therefor, of the corporation or firm; or
(b) The right of the natural person to act thereunder; or
(c) Any other license held or applied for by the natural
person; or
(d) He may take all such steps.
(3) Any conduct of an applicant or licensee which constitutes ground for disciplinary action under this code shall be
deemed such ground notwithstanding that such conduct took
place in another state.
(4) The holder of any license which has been revoked or
suspended shall surrender the license certificate to the commissioner at the commissioner's request. [1973 1st ex.s. c
152 § 2; 1969 ex.s. c 241 § 11; 1967 c 150 § 23; 1947 c 79 §
.17.53; Rem. Supp. 1947 § 45.17.53.]
Severability—1973 1st ex.s. c 152: See note following RCW
48.05.140.
48.17.535
48.17.530 Refusal, suspension, revocation of licenses.
(1) The commissioner may suspend, revoke, or refuse to
issue or renew any license which is issued or may be issued
under this chapter or any surplus line broker's license for any
cause specified in any other provision of this code, or for any
of the following causes:
(a) For any cause for which issuance of the license could
have been refused had it then existed and been known to the
commissioner.
(b) If the licensee or applicant wilfully violates or knowingly participates in the violation of any provision of this
code or any proper order or regulation of the commissioner.
(c) If the licensee or applicant has obtained or attempted
to obtain any such license through wilful misrepresentation
or fraud, or has failed to pass any examination required under
this chapter.
(d) If the licensee or applicant has misappropriated or
converted to his own use or has illegally withheld moneys
required to be held in a fiduciary capacity.
(e) If the licensee or applicant has, with intent to deceive,
materially misrepresented the terms or effect of any insur48.17.530
(2004 Ed.)
48.17.535 License or certificate suspension—Noncompliance with support order—Reissuance. The commissioner shall immediately suspend the license or certificate
of a person who has been certified pursuant to RCW
74.20A.320 by the department of social and health services
as a person who is not in compliance with a support order or
a *residential or visitation order. If the person has continued
to meet all other requirements for reinstatement during the
suspension, reissuance of the license or certificate shall be
automatic upon the commissioner's receipt of a release issued
by the department of social and health services stating that
the licensee is in compliance with the order. [1997 c 58 §
857.]
*Reviser's note: 1997 c 58 § 887 requiring a court to order certification
of noncompliance with residential provisions of a court-ordered parenting
plan was vetoed. Provisions ordering the department of social and health services to certify a responsible parent based on a court order to certify for noncompliance with residential provisions of a parenting plan were vetoed. See
RCW 74.20A.320.
Short title—Part headings, captions, table of contents not law—
Exemptions and waivers from federal law—Conflict with federal
requirements—Severability—1997 c 58: See RCW 74.08A.900 through
74.08A.904.
[Title 48 RCW—page 85]
48.17.540
Title 48 RCW: Insurance
Effective dates—Intent—1997 c 58: See notes following RCW
74.20A.320.
48.17.540
48.17.540 Procedure to suspend, revoke, or refuse—
Effect of conviction of felony. (1) The commissioner may
revoke or refuse to renew any license issued under this chapter, or any surplus line broker's license, immediately and
without hearing, upon sentencing of the licensee for conviction of a felony by final judgment of any court of competent
jurisdiction, if the facts giving rise to such conviction demonstrate the licensee to be untrustworthy to maintain any such
license.
(2) The commissioner may suspend, revoke, or refuse to
renew any such license:
(a) By an order served by mail or personal service upon
the licensee not less than fifteen days prior to the effective
date thereof, subject to the right of the licensee to have a hearing as provided in RCW 48.04.010; or
(b) By an order on hearing made as provided in chapter
34.05 RCW, the Administrative Procedure Act, effective not
less than ten days after the date of the service of the order,
subject to the right of the licensee to appeal to the superior
court.
(3) The commissioner may temporarily suspend such
license by an order served by mail or by personal service
upon the licensee not less than three days prior to the effective date thereof, provided the order contains a notice of revocation and includes a finding that the public safety or welfare
imperatively requires emergency action. Such suspension
shall continue only until proceedings for revocation are concluded. The commissioner also may temporarily suspend
such license in cases where proceedings for revocation are
pending if he or she finds that the public safety or welfare
imperatively requires emergency action.
(4) Service by mail under this section shall mean posting
in the United States mail, addressed to the licensee at the
most recent address shown in the commissioner's licensing
records for the licensee. Service by mail is complete upon
deposit in the United States mail. [1990 1st ex.s. c 3 § 6;
1989 c 175 § 113; 1988 c 248 § 14; 1982 c 181 § 8; 1973 1st
ex.s. c 107 § 2; 1967 c 150 § 24; 1947 c 79 § .17.54; Rem.
Supp. 1947 § 45.17.54.]
ify that the fine shall be fully paid not less than fifteen nor
more than thirty days from the date of the order. (3) Upon
failure to pay any such fine when due, the commissioner shall
revoke the licenses of the licensee or the approval(s) of the
insurance education provider, if not already revoked. The
fine shall be recovered in a civil action brought on behalf of
the commissioner by the attorney general. Any fine so collected shall be paid by the commissioner to the state treasurer
for the account of the general fund. [1989 c 323 § 3; 1975 1st
ex.s. c 266 § 8; 1967 c 150 § 25; 1947 c 79 § .17.56; Rem.
Supp. 1947 § 45.17.56.]
Effective date—1989 c 323: See note following RCW 48.17.055.
Severability—1975 1st ex.s. c 266: See note following RCW
48.01.010.
48.17.563
48.17.563 Insurance education providers—Commissioner's approval—Renewal fee. (1) The commissioner
may require insurance education providers to furnish specific
information regarding their curricula, faculty, methods of
monitoring attendance, and other matters reasonably related
to providing insurance education under this chapter. The
commissioner may grant approvals to such providers who
demonstrate the ability to conduct and certify completion of
one or more courses satisfying the insurance education
requirements of RCW 48.17.150.
(2) Provider and course approvals are valid for the time
period established by the commissioner and shall expire if
not timely renewed. Each provider shall pay the renewal fee
set forth in RCW 48.14.010(1)(n).
(3) In granting approvals for courses required by RCW
48.17.150(1)(d):
(a) The commissioner may require the availability of a
licensed agent with appropriate experience on the premises
whenever instruction is being offered; and
(b) The commissioner shall not deny approval to any
provider on the grounds that the proposed method of education employs nontraditional teaching techniques, such as substituting taped lectures for live instruction, offering instruction without fixed schedules, or providing education at individual learning rates. [1994 c 131 § 6; 1989 c 323 § 7.]
Effective date—1989 c 323: See note following RCW 48.17.055.
Effective date—1989 c 175: See note following RCW 34.05.010.
48.17.565
Severability—1982 c 181: See note following RCW 48.03.010.
Severability—1973 1st ex.s. c 107: See note following RCW
48.17.330.
48.17.550
48.17.550 Duration of suspension. Every order suspending any such license shall specify the period during
which suspension will be effective, and which period shall in
no event exceed twelve months. [1947 c 79 § .17.55; Rem.
Supp. 1947 § 45.17.55.]
48.17.560
48.17.560 Fines may be imposed. After hearing or
upon stipulation by the licensee or insurance education provider, and in addition to or in lieu of the suspension, revocation, or refusal to renew any such license or insurance education provider approval, the commissioner may levy a fine
upon the licensee or insurance education provider. (1) For
each offense the fine shall be an amount not more than one
thousand dollars. (2) The order levying such fine shall spec[Title 48 RCW—page 86]
48.17.565 Insurance education providers—Violations—Costs awarded. If an investigation of any provider
culminates in a finding by the commissioner or by any court
of competent jurisdiction, that the provider has failed to comply with or has violated any statute or regulation pertaining to
insurance education, the provider shall pay the expenses reasonably attributable and allocable to such investigation.
(1) The commissioner shall calculate such expenses and
render a bill therefor by registered mail to the provider.
Within thirty days after receipt of such bill, the provider shall
pay the full amount to the commissioner. The commissioner
shall transmit such payment to the state treasurer. The state
treasurer shall credit the payment to the office of the insurance commissioner regulatory account, treating such payment as recovery of a prior expenditure.
(2) In any action brought under this section, if the insurance commissioner prevails, the court may award to the
office of the insurance commissioner all costs of the action,
(2004 Ed.)
Agents, Brokers, Solicitors, and Adjusters
including a reasonable attorneys' fee to be fixed by the court.
[1989 c 323 § 4.]
Effective date—1989 c 323: See note following RCW 48.17.055.
48.17.568
48.17.568 Insurance education providers—Bond. In
addition to the regulatory requirements imposed pursuant to
RCW 48.17.150, the commissioner may require each insurance education provider to post a bond, cash deposit, or irrevocable letter of credit. Every insurance education provider,
other than an insurer, health care service contractor, health
maintenance organization, or educational institution established by Washington statutes, is subject to the requirement.
(1) The provider shall file with each request for course
approval and shall maintain in force while so approved, the
bond, cash deposit, or irrevocable letter of credit in favor of
the state of Washington, according to criteria which the commissioner shall establish by regulation. The amount of such
bond, cash deposit, or irrevocable letter of credit, shall not
exceed five thousand dollars for the provider's first approved
course and one thousand dollars for each additional approved
course.
(2) Proceeds from the bond, cash deposit, or irrevocable
letter of credit shall inure to the commissioner for payment of
investigation expenses or for payment of any fine ordered per
Washington statutes or regulations governing insurance education: PROVIDED, That recoverable investigation
expenses or fines shall not be limited to the amount of such
required bond, cash deposit, or irrevocable letter of credit.
[1989 c 323 § 5.]
Effective date—1989 c 323: See note following RCW 48.17.055.
48.17.591
48.17.591 Termination of agency contract—Effect on
insured. (1) No insurer authorized to do business in this state
may cancel or refuse to renew any policy because that
insurer's contract with the independent agent through whom
such policy is written has been terminated by the insurer, the
agent, or by mutual agreement.
(2) If an insurer intends to terminate a written agency
contract with an independent agent, the insurer shall give the
agent not less than one hundred twenty days' advance written
notice of the intent, unless the termination is based upon the
agent's abandonment of the agency, the agent's gross and
willful misconduct, the agent's loss of license by order of the
insurance commissioner, the agent's sale of, or material
change of ownership in, the agency, the agent's fraud or material misrepresentation relative to the business of insurance, or
the agent's default in payments due the insurer under the
terms of the agreement. During the notice period the insurer
shall not amend the existing contract without the consent of
the agent.
(a) Unless the agency contract provides otherwise, during the one hundred twenty day notice period the independent
agent shall not write or bind any new business on behalf of
the terminating insurer without specific written approval.
However, routine adjustments by insureds are permitted. The
terminating insurer shall permit renewal of all its policies in
the agent's book of business for a period of one year following the effective date of the termination, to the extent the policies meet the insurer's underwriting standards and the insurer
has no other reason for nonrenewal. The rate of commission
(2004 Ed.)
48.17.591
for any policies renewed under this provision shall be the
same as the agent would have received had the agency agreement not been terminated.
(b) An independent agent whose agency contract has
been terminated shall have a reasonable opportunity to transfer affected policies to other insurers with which the agent
has an appointment: PROVIDED, HOWEVER, That prior to
the conclusion of the one-year renewal period following the
effective date of the termination, an insurer without a reason
for not renewing an insured's policy and which has not
received notification of the placement of such policy with
another insurer shall provide its insured with appropriate
written notice of an offer to continue the policy. In such
cases, except where the terminated agent has placed the policy with another agent of the insurer, the insurer shall, where
practical, assign the policy to an appointed agent located reasonably near the insured willing to accept the assignment.
(c) An insurer is not required to continue the appointment of a terminated independent agent during or after the
one year renewal period. However, an agent whose contract
has been terminated by the insurer remains an agent of the
terminating insurer as to actions associated with the policies
subject to this section just as if he or she were appointed by
the insurer as its agent.
(3) In the absence of receipt of notice from the insured
that coverage will not be continued with the existing insurer,
an insurer whose agency contract has been terminated by an
independent agent, or by the mutual agreement of the insurer
and the agent, that elects to renew or lacks a reason not to
renew, shall give the renewal notice required by chapter
48.18 RCW to affected insureds, and continue renewed coverage in accordance with the methods specified in subsection
(2)(b) of this section. Agents affected by this subsection may
provide the notice to an insurer that an insured does not
intend to continue existing coverage with the insurer, after
receiving written authority to do so from an insured.
(4) For purposes of this section an "independent agent" is
a licensed insurance agent representing an insurer on an independent contractor basis and not as an employee. This term
includes only those agents not obligated by contract to place
insurance accounts with a particular insurer or group of insurers.
(5) This section does not apply to (a) agents or policies of
an insurer or group of insurers if the business is not owned by
the agent and the termination of any such contractual agreement does not result in the cancellation or nonrenewal of any
policies of insurance; (b) general agents, to the extent that
they are acting in that capacity; (c) life, disability, surety,
ocean marine and foreign trade, and title insurance policies;
(d) situations where the termination of the agency contract
results from the insolvency or liquidation of the terminating
insurer.
(6) No insurer may terminate its agency contract with an
appointed agent unless it complies with this section.
(7) Nothing contained in this section excuses an insurer
from giving cancellation and renewal notices that may be
required by chapter 48.18 RCW. [1990 c 121 § 1. Formerly
RCW 48.18.285.]
Reviser's note: Previously codified as RCW 48.18.285. Recodified to
reflect legislative directive under 1990 c 121.
[Title 48 RCW—page 87]
48.17.600
Title 48 RCW: Insurance
48.17.600
48.17.600 Separation of premium funds. (1) All
funds representing premiums or return premiums received by
an agent, solicitor or broker in his or her fiduciary capacity
shall be accounted for and maintained in a separate account
from all other business and personal funds.
(2) An agent, solicitor or broker shall not commingle or
otherwise combine premiums with any other moneys, except
as provided in subsection (3) of this section.
(3) An agent, solicitor or broker may commingle with
premium funds any additional funds as he or she may deem
prudent for the purpose of advancing premiums, establishing
reserves for the paying of return premiums, or for any contingencies as may arise in his or her business of receiving and
transmitting premium or return premium funds.
(4) Each willful violation of this section shall constitute
a misdemeanor.
(5) This section shall not apply to agents for title insurance companies or insurance brokers whose average daily
balance for premiums received on behalf of insureds in the
state of Washington equals or exceeds one million dollars.
[1988 c 248 § 15; 1986 c 69 § 1.]
Effective date—1986 c 69: "This act shall take effect on January 1,
1987." [1986 c 69 § 2.]
48.18.295
48.18.296
48.18.297
48.18.298
48.18.299
48.18.300
48.18.310
48.18.320
48.18.340
48.18.350
48.18.360
48.18.370
48.18.375
48.18.390
48.18.400
48.18.410
48.18.420
48.18.430
48.18.440
48.18.450
48.18.452
48.18.460
48.18.470
48.18.480
48.18.510
48.18.520
48.18.540
48.18.543
Chapter 48.18
Chapter 48.18 RCW
THE INSURANCE CONTRACT
48.18.550
Sections
48.18.010
48.18.020
48.18.030
48.18.040
48.18.050
48.18.060
48.18.070
48.18.080
48.18.090
48.18.100
48.18.103
48.18.110
48.18.120
48.18.125
48.18.130
48.18.140
48.18.150
48.18.160
48.18.170
48.18.180
48.18.190
48.18.200
48.18.210
48.18.220
48.18.230
48.18.240
48.18.250
48.18.260
48.18.280
48.18.289
48.18.290
48.18.2901
48.18.291
48.18.292
48.18.293
48.18.545
Scope of chapter.
Power to contract.
Insurable interest—Personal insurances—Nonprofit organizations.
Insurable interest—Property insurances.
Named insured—Interest insured.
Application—When required.
Alteration of application.
Application as evidence.
Warranties and misrepresentations, effect of.
Forms of policies—Filing, certification, and approval.
Forms of commercial property casualty policies—Legislative
intent—Issuance prior to filing—Disapproval by commissioner—Definition.
Grounds for disapproval.
Standard forms.
Loss payable and mortgagee clauses for property and automobile physical damage insurances—Requirement to use
adopted forms.
Standard provisions.
Contents of policies in general.
Additional contents.
Charter or bylaw provisions.
"Premium" defined.
Stated premium must include all charges.
Policy must contain entire contract.
Limiting actions, jurisdiction.
Execution of policies.
Receipt of premium to bind coverage—Contents of receipt.
Binders—Duration—Premium.
Binders—Agent's liability.
Underwriters' and combination policies.
Delivery of policy.
Renewal of policy.
Cancellation, nonrenewal, renewal offer—Notice to agent.
Cancellation by insurer.
Renewal required—Exceptions.
Cancellation of private automobile insurance by insurer—
Notice—Requirements.
Refusal to renew private automobile insurance by insurer—
Change in amount of premium or deductibles.
Nonliability of commissioner, agents, insurer for information
giving reasons for cancellation or refusal to renew—Proof of
mailing of notice.
[Title 48 RCW—page 88]
48.18.553
48.18.560
48.18.565
RCW 48.18.290 through 48.18.297 not to prevent cancellation
or nonrenewal, when.
Contracts to which RCW 48.18.291 through 48.18.297 inapplicable.
Private passenger automobile defined.
Disability insurance—Refusal to renew by insurer.
Disability insurance—Cancellation by insurer.
Cancellation by insured.
Cancellation by commissioner.
Annulment of liability policies.
Dividends payable to real party in interest.
Breach of warranty prior to loss—Effect.
Assignment of policies—Life and disability.
Payment discharges insurer—Life and disability.
Assignment of interests under group insurance policy.
Simultaneous deaths—Payment of proceeds—Life insurance.
Exemption of proceeds—Disability.
Exemption of proceeds—Life.
Exemption of proceeds—Group life.
Exemption of proceeds, commutation—Annuities.
Spouse's rights in life insurance policy.
Life insurance payable to trustee named as beneficiary in the
policy.
Life insurance designating as beneficiary a trustee named by
will.
Proof of loss—Furnishing forms—May require oath.
Claims administration—Not waiver.
Discrimination prohibited.
Validity of noncomplying forms.
Construction of policies.
Cancellations, denials, refusals to renew—Written notification.
Single premium credit insurance—Residential mortgage
loan—Restrictions—Definitions.
Underwriting restrictions that apply to personal insurance—
Credit history or insurance score—Rules.
Victims of domestic abuse—Prohibition on certain cancellations, denials, refusals to renew, and different rates—
Domestic abuse defined.
Victims of malicious harassment—Restrictions of underwriting actions—Definitions.
Year 2000 failure—Reinstating insurance policy under certain
circumstances.
Homeowner's insurance—Foster parent.
Exemptions of proceeds of insurance on exempt property: RCW 6.15.030.
False claims or proof: RCW 48.30.230.
Misrepresentation in application: RCW 48.30.210.
48.18.010
48.18.010 Scope of chapter. The applicable provisions
of this chapter shall apply to insurances other than ocean
marine and foreign trade insurances. This chapter shall not
apply to life or disability insurance policies not issued for
delivery in this state nor delivered in this state. [1947 c 79 §
.18.01; Rem. Supp. 1947 § 45.18.01.]
48.18.020
48.18.020 Power to contract. (1) Any person eighteen
years or older shall be considered of full legal age and may
contract for or with respect to insurance. Any person seventeen years or younger shall be considered a minor for purposes of Title 48 RCW.
(2) A minor not less than fifteen years of age as at nearest
birthday may, notwithstanding such minority, contract for
life or disability insurance on his own life or body, for his
own benefit or for the benefit of his father, mother, spouse,
child, brother, sister, or grandparent, and may exercise all
rights and powers with respect to or under the contract as
though of full legal age, and may surrender his interest
therein and give a valid discharge for any benefit accruing or
money payable thereunder. The minor shall not, by reason of
his minority, be entitled to rescind, avoid, or repudiate the
contract, or any exercise of a right or privilege thereunder,
except, that such minor, not otherwise emancipated, shall not
(2004 Ed.)
The Insurance Contract
be bound by any unperformed agreement to pay, by promissory note or otherwise any premium on any such insurance
contract. [1973 1st ex.s. c 163 § 2; 1970 ex.s. c 17 § 4; 1947
c 79 § .18.02; Rem. Supp. 1947 § 45.18.02.]
48.18.030
48.18.030 Insurable interest—Personal insurances—
Nonprofit organizations. (1) Any individual of competent
legal capacity may procure or effect an insurance contract
upon his own life or body for the benefit of any person. But
no person shall procure or cause to be procured any insurance
contract upon the life or body of another individual unless the
benefits under such contract are payable to the individual
insured or his personal representatives, or to a person having,
at the time when such contract was made, an insurable interest in the individual insured.
(2) If the beneficiary, assignee or other payee under any
contract made in violation of this section receives from the
insurer any benefits thereunder accruing upon the death, disablement or injury of the individual insured, the individual
insured or his executor or administrator, as the case may be,
may maintain an action to recover such benefits from the person so receiving them.
(3) "Insurable interest" as used in this section and in
RCW 48.18.060 includes only interests as follows:
(a) In the case of individuals related closely by blood or
by law, a substantial interest engendered by love and affection; and
(b) In the case of other persons, a lawful and substantial
economic interest in having the life, health or bodily safety of
the individual insured continue, as distinguished from an
interest which would arise only by, or would be enhanced in
value by, the death, disablement or injury of the individual
insured.
(c) An individual heretofore or hereafter party to a contract or option for the purchase or sale of an interest in a business partnership or firm, or of shares of stock of a close corporation or of an interest in such shares, has an insurable
interest in the life of each individual party to such contract
and for the purposes of such contract only, in addition to any
insurable interest which may otherwise exist as to the life of
such individual.
(d) A guardian, trustee or other fiduciary has an insurable
interest in the life of any person for whose benefit the fiduciary holds property, and in the life of any other individual in
whose life such person has an insurable interest.
(e) Subject to rules adopted under subsection (4) of this
section, upon joint application with a nonprofit organization
for, or transfer to a nonprofit organization of, an insurance
policy on the life of a person naming the organization as
owner and beneficiary, a nonprofit organization's interest in
the life of a person if:
(i) The nonprofit organization was established exclusively for religious, charitable, scientific, literary, or educational purposes, or to promote amateur athletic competition,
to conduct testing for public safety, or to prevent cruelty to
children or animals; and
(ii) The nonprofit organization:
(A) Has existed for a minimum of five years; or
(B) Has been issued a certificate of exemption to conduct
a charitable gift annuity business under RCW 48.38.010, or is
(2004 Ed.)
48.18.050
authorized to conduct a charitable gift annuity business under
RCW 28B.10.485; or
(C) Has been organized, and at all times has been operated, exclusively for benefit of, to perform the functions of,
or to carry out the purposes of one or more nonprofit organizations described in (e)(ii)(A) or (B) of this subsection and is
operated, supervised, or controlled by or in connection with
one or more such nonprofit organizations; and
(iii) For a joint application, the person is not an
employee, officer, or director of the organization who
receives significant compensation from the organization and
who became affiliated with the organization in that capacity
less than one year before the joint application.
(4) The commissioner may adopt rules governing joint
applications for, and transfers of, life insurance under subsection (3)(e) of this section. The rules may include:
(a) Standards for full and fair disclosure that set forth the
manner, content, and required disclosure for the sale of life
insurance issued under subsection (3)(e) of this section; and
(b) For joint applications, a grace period of thirty days
during which the insured person may direct the nonprofit
organization to return the policy and the insurer to refund any
premium paid to the party that, directly or indirectly, paid the
premium; and
(c) Standards for granting an exemption from the fiveyear existence requirement of subsection (3)(e)(ii)(A) of this
section to a private foundation that files with the insurance
commissioner documents, stipulations, and information as
the insurance commissioner may require to carry out the purpose of subsection (3)(e) of this section.
(5) Nothing in this section permits the personal representative of the insured's estate to recover the proceeds of a policy on the life of a deceased insured person that was applied
for jointly by, or transferred to, an organization covered by
subsection (3)(e) of this section, where the organization was
named owner and beneficiary of the policy.
This subsection applies to all life insurance policies
applied for by, or transferred to, an organization covered by
subsection (3)(e) of this section, regardless of the time of
application or transfer and regardless of whether the organization would have been covered at the time of application or
transfer. [1992 c 51 § 1; 1973 1st ex.s. c 89 § 3; 1947 c 79 §
.18.03; Rem. Supp. 1947 § 45.18.03.]
Use of trust funds by fiduciaries for life insurance: RCW 11.110.120.
48.18.040
48.18.040 Insurable interest—Property insurances.
(1) No contract of insurance on property or of any interest
therein or arising therefrom shall be enforceable except for
the benefit of persons having an insurable interest in the
things insured.
(2) "Insurable interest" as used in this section means any
lawful and substantial economic interest in the safety or preservation of the subject of the insurance free from loss,
destruction, or pecuniary damage. [1947 c 79 § .18.04; Rem.
Supp. 1947 § 45.18.04.]
48.18.050
48.18.050 Named insured—Interest insured. When
the name of a person intended to be insured is specified in the
policy, such insurance can be applied only to his own proper
interest. This section shall not apply to life and disability
[Title 48 RCW—page 89]
48.18.060
Title 48 RCW: Insurance
insurances. [1947 c 79 § .18.05; Rem. Supp. 1947 §
45.18.05.]
48.18.060
48.18.060 Application—When required. No life or
disability insurance contract upon an individual, except a
contract of group life insurance or of group or blanket disability insurance as defined in this code, shall be made or effectuated unless at the time of the making of the contract the
individual insured, being of competent legal capacity to contract, in writing applies therefor or consents thereto, except in
the following cases:
(1) A spouse may effectuate such insurance upon the
other spouse.
(2) Any person having an insurable interest in the life of
a minor, or any person upon whom a minor is dependent for
support and maintenance, may effectuate insurance upon the
life of the minor. [1947 c 79 § .18.06; Rem. Supp. 1947 §
45.18.06.]
48.18.070
48.18.070 Alteration of application. (1) Any application for insurance in writing by the applicant shall be altered
solely by the applicant or by his written consent, except that
insertions may be made by the insurer for administrative purposes only in such manner as to indicate clearly that such
insertions are not to be ascribed to the applicant. Violation of
this provision shall be a misdemeanor.
(2) Any insurer issuing an insurance contract upon such
an application unlawfully altered by its officer, employee, or
agent shall not have available in any action arising out of
such contract, any defense which is based upon the fact of
such alteration, or as to any item in the application which was
so altered. [1947 c 79 § .18.07; Rem. Supp. 1947 § 45.18.07.]
48.18.080
48.18.080 Application as evidence. (1) No application
for the issuance of any insurance policy or contract shall be
admissible in evidence in any action relative to such policy or
contract, unless a true copy of the application was attached to
or otherwise made a part of the policy when issued and delivered. This provision shall not apply to policies or contracts of
industrial life insurance.
(2) If any policy of life or disability insurance delivered
in this state is reinstated or renewed, and the insured or the
beneficiary or assignee of the policy makes written request to
the insurer for a copy of the application, if any, for such reinstatement or renewal, the insurer shall, within fifteen days
after receipt of such request at its home office or at any of its
branch offices, deliver or mail to the person making such
request, a copy of such application. If such copy is not so
delivered or mailed, the insurer shall be precluded from introducing the application as evidence in any action or proceeding based upon or involving the policy or its reinstatement or
renewal. [1947 c 79 § .18.08; Rem. Supp. 1947 § 45.18.08.]
48.18.090
48.18.090 Warranties and misrepresentations, effect
of. (1) Except as provided in subsection (2) of this section, no
oral or written misrepresentation or warranty made in the
negotiation of an insurance contract, by the insured or in his
behalf, shall be deemed material or defeat or avoid the contract or prevent it attaching, unless the misrepresentation or
warranty is made with the intent to deceive.
[Title 48 RCW—page 90]
(2) In any application for life or disability insurance
made in writing by the insured, all statements therein made
by the insured shall, in the absence of fraud, be deemed representations and not warranties. The falsity of any such statement shall not bar the right to recovery under the contract
unless such false statement was made with actual intent to
deceive or unless it materially affected either the acceptance
of the risk or the hazard assumed by the insurer. [1947 c 79
§ .18.09; Rem. Supp. 1947 § 45.18.09.]
48.18.100
48.18.100 Forms of policies—Filing, certification,
and approval. (1) No insurance policy form other than
surety bond forms, forms exempt under RCW 48.18.103, or
application form where written application is required and is
to be attached to the policy, or printed life or disability rider
or endorsement form shall be issued, delivered, or used
unless it has been filed with and approved by the commissioner. This section shall not apply to policies, riders or
endorsements of unique character designed for and used with
relation to insurance upon a particular subject.
(2) Every such filing containing a certification, in a form
approved by the commissioner, by either the chief executive
officer of the insurer or by an actuary who is a member of the
American academy of actuaries, attesting that the filing complies with Title 48 RCW and Title 284 of the Washington
Administrative Code, may be used by such insurer immediately after filing with the commissioner. The commissioner
may order an insurer to cease using a certified form upon the
grounds set forth in RCW 48.18.110. This subsection shall
not apply to certain types of policy forms designated by the
commissioner by rule.
(3) Except as provided in RCW 48.18.103, every filing
that does not contain a certification pursuant to subsection (2)
of this section shall be made not less than thirty days in
advance of any such issuance, delivery, or use. At the expiration of such thirty days the form so filed shall be deemed
approved unless prior thereto it has been affirmatively
approved or disapproved by order of the commissioner. The
commissioner may extend by not more than an additional fifteen days the period within which he or she may so affirmatively approve or disapprove any such form, by giving notice
of such extension before expiration of the initial thirty-day
period. At the expiration of any such period as so extended,
and in the absence of such prior affirmative approval or disapproval, any such form shall be deemed approved. The commissioner may withdraw any such approval at any time for
cause. By approval of any such form for immediate use, the
commissioner may waive any unexpired portion of such initial thirty-day waiting period.
(4) The commissioner's order disapproving any such
form or withdrawing a previous approval shall state the
grounds therefor.
(5) No such form shall knowingly be so issued or delivered as to which the commissioner's approval does not then
exist.
(6) The commissioner may, by order, exempt from the
requirements of this section for so long as he or she deems
proper, any insurance document or form or type thereof as
specified in such order, to which in his or her opinion this
section may not practicably be applied, or the filing and
(2004 Ed.)
The Insurance Contract
approval of which are, in his or her opinion, not desirable or
necessary for the protection of the public.
(7) Every member or subscriber to a rating organization
shall adhere to the form filings made on its behalf by the
organization. Deviations from such organization are permitted only when filed with the commissioner in accordance
with this chapter. [1997 c 428 § 3; 1989 c 25 § 1; 1982 c 181
§ 16; 1947 c 79 § .18.10; Rem. Supp. 1947 § 45.18.10.]
Effective date—1989 c 25: "This act shall take effect on September 1,
1989." [1989 c 25 § 10.]
Severability—1982 c 181: See note following RCW 48.03.010.
Format of disability policies: RCW 48.20.012.
48.18.103
48.18.103 Forms of commercial property casualty
policies—Legislative intent—Issuance prior to filing—
Disapproval by commissioner—Definition. (1) It is the
intent of the legislature to assist the purchasers of commercial
property casualty insurance by allowing policies to be issued
more expeditiously and provide a more competitive market
for forms.
(2) Commercial property casualty policies may be issued
prior to filing the forms. All commercial property casualty
forms shall be filed with the commissioner within thirty days
after an insurer issues any policy using them.
(3) If, within thirty days after a commercial property
casualty form has been filed, the commissioner finds that the
form does not meet the requirements of this chapter, the commissioner shall disapprove the form and give notice to the
insurer or rating organization that made the filing, specifying
how the form fails to meet the requirements and stating when,
within a reasonable period thereafter, the form shall be
deemed no longer effective. The commissioner may extend
the time for review another fifteen days by giving notice to
the insurer prior to the expiration of the original thirty-day
period.
(4) Upon a final determination of a disapproval of a policy form under subsection (3) of this section, the insurer shall
amend any previously issued disapproved form by endorsement to comply with the commissioner's disapproval.
(5) For purposes of this section, "commercial property
casualty" means insurance pertaining to a business, profession, occupation, nonprofit organization, or public entity for
the lines of property and casualty insurance defined in RCW
48.11.040, 48.11.050, 48.11.060, or 48.11.070.
(6) Except as provided in subsection (4) of this section,
the disapproval shall not affect any contract made or issued
prior to the expiration of the period set forth in the notice of
disapproval.
(7) In the event a hearing is held on the actions of the
commissioner under subsection (3) of this section, the burden
of proof shall be on the commissioner. [2003 c 248 § 4; 1997
c 428 § 1.]
48.18.125
(b) If it does not comply with any controlling filing
theretofore made and approved; or
(c) If it contains or incorporates by reference any inconsistent, ambiguous or misleading clauses, or exceptions and
conditions which unreasonably or deceptively affect the risk
purported to be assumed in the general coverage of the contract; or
(d) If it has any title, heading, or other indication of its
provisions which is misleading; or
(e) If purchase of insurance thereunder is being solicited
by deceptive advertising.
(2) In addition to the grounds for disapproval of any such
form as provided in subsection (1) of this section, the commissioner may disapprove any form of disability insurance
policy, except an individual health benefit plan, if the benefits provided therein are unreasonable in relation to the premium charged. [2000 c 79 § 2; 1985 c 264 § 9; 1982 c 181 §
9; 1947 c 79 § .18.11; Rem. Supp. 1947 § 45.18.11.]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
Severability—1982 c 181: See note following RCW 48.03.010.
48.18.120
48.18.120 Standard forms. (1) The commissioner
shall, after hearing, from time to time promulgate such rules
and regulations as may be necessary to define and effect reasonable uniformity in all basic contracts of fire insurance
which are commonly known as the standard form fire policies and may be so referred to in this code, and the usual supplemental coverages, riders, or endorsements thereon or
thereto, to the end that such definitions shall be applied in the
construction of the various sections of this code wherein such
terms are used and that there be a reasonable concurrency of
contract where two or more insurers insure the same subject
and risk. All such forms heretofore approved by the commissioner and for use as of immediately prior to the effective
date of this code, may continue to be so used until the further
order of the commissioner made pursuant to this subsection
or pursuant to any other provision of this code.
(2) The commissioner may from time to time, after hearing, promulgate such rules and regulations as he deems necessary to establish reasonable minimum standard conditions
and terminology for basic benefits to be provided by disability insurance contracts which are subject to chapters 48.20
and 48.21 RCW, for the purpose of expediting his approval of
such contracts pursuant to this code. No such promulgation
shall be inconsistent with standard provisions as required
pursuant to RCW 48.18.130, nor contain requirements inconsistent with requirements relative to the same benefit provision as formulated or approved by the National Association
of Insurance Commissioners. [1957 c 193 § 10; 1947 c 79 §
.18.12; Rem. Supp. 1947 § 45.18.12.]
48.18.125
48.18.110
48.18.110 Grounds for disapproval. (1) The commissioner shall disapprove any such form of policy, application,
rider, or endorsement, or withdraw any previous approval
thereof, only:
(a) If it is in any respect in violation of or does not comply with this code or any applicable order or regulation of the
commissioner issued pursuant to the code; or
(2004 Ed.)
48.18.125 Loss payable and mortgagee clauses for
property and automobile physical damage insurances—
Requirement to use adopted forms. The commissioner is
hereby authorized, and shall within a reasonable time following July 30, 1967, adopt standard forms for loss payable and
mortgagee clauses for property and automobile physical
damage insurances, pursuant to the procedures set forth in
RCW 48.18.120(1). Following the adoption of such forms,
[Title 48 RCW—page 91]
48.18.130
Title 48 RCW: Insurance
no insurer authorized to do business in the state shall use any
form other than those so adopted. [1967 ex.s. c 12 § 1.]
48.18.130
48.18.130 Standard provisions. (1) Insurance contracts shall contain such standard provisions as are required
by the applicable chapters of this code pertaining to contracts
of particular kinds of insurance. The commissioner may
waive the required use of a particular standard provision in a
particular insurance contract form if
(a) he finds such provision unnecessary for the protection of the insured, and inconsistent with the purposes of the
contract, and
(b) the contract is otherwise approved by him.
(2) No insurance contract shall contain any provision
inconsistent with or contradictory to any such standard provision used or required to be used, but the commissioner may,
except as to the standard provisions of individual disability
insurance contracts as required under chapter 48.20 RCW,
approve any provision which is in his opinion more favorable
to the insured than the standard provision or optional standard provision otherwise required. No endorsement, rider, or
other documents attached to such contract shall vary, extend,
or in any respect conflict with any such standard provision, or
with any modification thereof so approved by the commissioner as being more favorable to the insured.
(3) In lieu of the standard provisions required by this
code for contracts for particular kinds of insurance, substantially similar standard provisions required by the law of a foreign or alien insurer's domicile may be used when approved
by the commissioner. [1947 c 79 § .18.13; Rem. Supp. 1947
§ 45.18.13.]
Standard provisions
disability: Chapter 48.20 RCW.
group and blanket disability: Chapter 48.21 RCW.
group life and annuities: Chapter 48.24 RCW.
industrial life: Chapter 48.25 RCW.
life insurance and annuities: Chapter 48.23 RCW.
required if payment is received within five days of the date
payment is due.
(b) The commissioner shall adopt rules to implement this
subsection and shall take no disciplinary action against an
insurer until ninety days after the effective date of the rule.
(5) This section shall not apply to surety insurance contracts. [2002 c 344 § 1; 1989 c 25 § 2; 1957 c 193 § 11; 1947
c 79 § .18.14; Rem. Supp. 1947 § 45.18.14.]
Effective date—1989 c 25: See note following RCW 48.18.100.
48.18.150
48.18.150 Additional contents. A policy may contain
additional provisions, which are not inconsistent with this
code, and which are
(1) required to be so inserted by the laws of the insurer's
state of domicile; or
(2) necessary, on account of the manner in which the
insurer is constituted or operated, to state the rights and obligations of the parties to the contract. [1947 c 79 § .18.15;
Rem. Supp. 1947 § 45.18.15.]
48.18.160
48.18.160 Charter or bylaw provisions. No policy
shall contain any provision purporting to make any portion of
the charter, bylaws, or other constituent document of the
insurer a part of the contract unless such portion is set forth in
full in the policy. Any policy provision in violation of this
section shall be invalid. [1947 c 79 § .18.16; Rem. Supp.
1947 § 45.18.16.]
48.18.170
48.18.170 "Premium" defined. "Premium" as used in
this code means all sums charged, received, or deposited as
consideration for an insurance contract or the continuance
thereof. Any assessment, or any "membership," "policy,"
"survey," "inspection," "service" or similar fee or charge
made by the insurer in consideration for an insurance contract
is deemed part of the premium. [1947 c 79 § .18.17; Rem.
Supp. 1947 § 45.18.17.]
48.18.180
48.18.140
48.18.140 Contents of policies in general. (1) The
written instrument, in which a contract of insurance is set
forth, is the policy.
(2) A policy shall specify:
(a) The names of the parties to the contract. The insurer's
name shall be clearly shown in the policy.
(b) The subject of the insurance.
(c) The risk insured against.
(d) The time at which the insurance thereunder takes
effect and the period during which the insurance is to continue.
(e) A statement of the premium, and if other than life,
disability, or title insurance, the premium rate where applicable.
(f) The conditions pertaining to the insurance.
(3) If under the contract the exact amount of premiums is
determinable only at termination of the contract, a statement
of the basis and rates upon which the final premium is to be
determined and paid shall be specified in the policy.
(4)(a) Periodic payment plans for private passenger automobile insurance shall allow a specific day of the month for a
due date for payment of premiums. A late charge may not be
[Title 48 RCW—page 92]
48.18.180 Stated premium must include all charges.
(1) The premium stated in the policy shall be inclusive of all
fees, charges, premiums, or other consideration charged for
the insurance or for the procurement thereof.
(2) No insurer or its officer, employee, agent, solicitor,
or other representative shall charge or receive any fee, compensation, or consideration for insurance which is not
included in the premium specified in the policy.
(3) Each violation of this section is a gross misdemeanor.
(4) This section does not apply to a fee paid to a broker
by an insured as provided in RCW 48.17.270. [1994 c 203 §
2; 1947 c 79 § .18.18; Rem. Supp. 1947 § 45.18.18.]
48.18.190
48.18.190 Policy must contain entire contract. No
agreement in conflict with, modifying, or extending any contract of insurance shall be valid unless in writing and made a
part of the policy. [1947 c 79 § .18.19; Rem. Supp. 1947 §
45.18.19.]
48.18.200
48.18.200 Limiting actions, jurisdiction. (1) No insurance contract delivered or issued for delivery in this state and
covering subjects located, resident, or to be performed in this
state, shall contain any condition, stipulation, or agreement
(2004 Ed.)
The Insurance Contract
(a) requiring it to be construed according to the laws of
any other state or country except as necessary to meet the
requirements of the motor vehicle financial responsibility
laws of such other state or country; or
(b) depriving the courts of this state of the jurisdiction of
action against the insurer; or
(c) limiting right of action against the insurer to a period
of less than one year from the time when the cause of action
accrues in connection with all insurances other than property
and marine and transportation insurances. In contracts of
property insurance, or of marine and transportation insurance, such limitation shall not be to a period of less than one
year from the date of the loss.
(2) Any such condition, stipulation, or agreement in violation of this section shall be void, but such voiding shall not
affect the validity of the other provisions of the contract.
[1947 c 79 § .18.20; Rem. Supp. 1947 § 45.18.20.]
48.18.210
48.18.210 Execution of policies. (1) Every insurance
contract shall be executed in the name of and on behalf of the
insurer by its officer, employee, or representative duly authorized by the insurer.
(2) A facsimile signature of any such executing officer,
employee or representative may be used in lieu of an original
signature.
(3) No insurance contract heretofore or hereafter issued
and which is otherwise valid shall be rendered invalid by reason of the apparent execution thereof on behalf of the insurer
by the imprinted facsimile signature of any individual not
authorized so to execute as of the date of the policy, if the policy is countersigned with the original signature of an individual then so authorized to countersign. [1947 c 79 § .18.21;
Rem. Supp. 1947 § 45.18.21.]
48.18.220
48.18.220 Receipt of premium to bind coverage—
Contents of receipt. Where an agent or other representative
of an insurer receipts premium money at the time that agent
or representative purports to bind coverage, the receipt shall
state: (a) that it is a binder, (b) a brief description of the coverage bound, and (c) the identity of the insurer in which the
coverage is bound. This section does not apply as to life and
disability insurances. [1967 ex.s. c 12 § 2.]
48.18.230
48.18.230 Binders—Duration—Premium. (1) A
"binder" is used to bind insurance temporarily pending the
issuance of the policy. No binder shall be valid beyond the
issuance of the policy as to which it was given, or beyond
ninety days from its effective date, whichever period is the
shorter.
(2) If the policy has not been issued a binder may be
extended or renewed beyond such ninety days upon the commissioner's written approval, or in accordance with such rules
and regulations relative thereto as the commissioner may promulgate.
(3) Where the premium used in the binder differs from
the actual policy premium by less than ten dollars, the insurer
shall not be required to notify the insured and may use the
actual policy premium. [1996 c 95 § 1; 1947 c 79 § .18.23;
Rem. Supp. 1947 § 45.18.23.]
(2004 Ed.)
48.18.280
48.18.240
48.18.240 Binders—Agent's liability. The commissioner may suspend or revoke the license of any agent issuing
or purporting to issue any binder as to any insurer named
therein as to which he is not then authorized so to bind. [1947
c 79 § .18.24; Rem. Supp. 1947 § 45.18.24.]
48.18.250
48.18.250 Underwriters' and combination policies.
(1) Two or more authorized insurers may jointly issue, and
shall be jointly and severally liable on, an underwriters' policy bearing their names. Any one insurer may issue policies
in the name of an underwriter's department and such policies
shall plainly show the true name of the insurer.
(2) Two or more authorized insurers may, with the commissioner's approval, issue a combination policy which shall
contain provisions substantially as follows:
(a) That the insurers executing the policy shall be severally liable for the full amount of any loss or damage, according to the terms of the policy, or for specified percentages or
amounts thereof, aggregating the full amount of insurance
under the policy.
(b) That service of process, or of any notice or proof of
loss required by such policy, upon any of the insurers executing the policy, shall constitute service upon all such insurers.
(3) This section shall not apply to co-surety obligations.
[1947 c 79 § .18.25; Rem. Supp. 1947 § 45.18.25.]
48.18.260
48.18.260 Delivery of policy. (1) Subject to the
insurer's requirements as to payment of premium, every policy shall be delivered to the insured or to the person entitled
thereto within a reasonable period of time after its issuance.
(2) In event the original policy is delivered or is so
required to be delivered to or for deposit with any vendor,
mortgagee, or pledgee of any motor vehicle or aircraft, and in
which policy any interest of the vendee, mortgagor, or
pledgor in or with reference to such vehicle or aircraft is
insured, a duplicate of such policy, or memorandum thereof
setting forth the type of coverage, limits of liability, premiums for the respective coverages, and duration of the policy,
shall be delivered by the vendor, mortgagee, or pledgee to
each such vendee, mortgagor, or pledgor named in the policy
or coming within the group of persons designated in the policy to be so included. If the policy does not provide coverage
of legal liability for injury to persons or damage to the property of third parties, a conspicuous statement of such fact
shall be printed, written, or stamped on the face of such duplicate policy or memorandum. [1947 c 79 § .18.26; Rem.
Supp. 1947 § 45.18.26.]
Vehicle seller must furnish buyer itemized statement of insurance and other
charges: RCW 46.70.130.
48.18.280
48.18.280 Renewal of policy. Any insurance policy terminating by its terms at a specified expiration date and not
otherwise renewable, may be renewed or extended at the
option of the insurer and upon a currently authorized policy
form and at the premium rate then required therefor for a specific additional period or periods by a certificate or by
endorsement of the policy, and without requiring the issuance
of a new policy. [1947 c 79 § .18.28; Rem. Supp. 1947 §
45.18.28.]
[Title 48 RCW—page 93]
48.18.289
Title 48 RCW: Insurance
48.18.289
48.18.289 Cancellation, nonrenewal, renewal offer—
Notice to agent. Whenever a notice of cancellation or nonrenewal or an offer to renew is furnished to an insured in
accord with any provision of this chapter, a copy of such
notice or offer shall be provided within five working days to
the agent on the account or to the broker of record for the
insured. When possible, the copy to the agent or broker may
be provided electronically. [2000 c 220 § 1; 1988 c 249 § 1;
1987 c 14 § 1.]
Effective date—1988 c 249: "This act shall take effect September 1,
1988." [1988 c 249 § 4.]
§ 5; 1975-'76 2nd ex.s. c 119 § 2; 1947 c 79 § .18.29; Rem.
Supp. 1947 § 45.18.29.]
Effective date—1988 c 249: See note following RCW 48.18.289.
Application—1985 c 264 §§ 17-22: "Sections 17 through 22 of this act
apply to all new or renewal policies issued or renewed after May 10, 1985.
Sections 17 through 22 of this act shall not apply to or affect the validity of
any notice of cancellation mailed or delivered prior to May 10, 1985. Sections 17 through 22 of this act shall not be construed to affect cancellation of
a renewal policy, if notice of cancellation is mailed or delivered within fortyfive days after May 10, 1985. Sections 17 through 22 of this act shall not be
construed to require notice, other than that already required, of intention not
to renew any policy which expires less than forty-five days after May 10,
1985." [1985 c 264 § 24.]
48.18.290
48.18.290 Cancellation by insurer. (1) Cancellation
by the insurer of any policy which by its terms is cancellable
at the option of the insurer, or of any binder based on such
policy which does not contain a clearly stated expiration date,
may be effected as to any interest only upon compliance with
the following:
(a) Written notice of such cancellation, accompanied by
the actual reason therefor, must be actually delivered or
mailed to the named insured not less than forty-five days
prior to the effective date of the cancellation except for cancellation of insurance policies for nonpayment of premiums,
which notice shall be not less than ten days prior to such date
and except for cancellation of fire insurance policies under
chapter 48.53 RCW, which notice shall not be less than five
days prior to such date;
(b) Like notice must also be so delivered or mailed to
each mortgagee, pledgee, or other person shown by the policy to have an interest in any loss which may occur thereunder. For purposes of this subsection (1)(b), "delivered"
includes electronic transmittal, facsimile, or personal delivery.
(2) The mailing of any such notice shall be effected by
depositing it in a sealed envelope, directed to the addressee at
his or her last address as known to the insurer or as shown by
the insurer's records, with proper prepaid postage affixed, in
a letter depository of the United States post office. The
insurer shall retain in its records any such item so mailed,
together with its envelope, which was returned by the post
office upon failure to find, or deliver the mailing to, the
addressee.
(3) The affidavit of the individual making or supervising
such a mailing, shall constitute prima facie evidence of such
facts of the mailing as are therein affirmed.
(4) The portion of any premium paid to the insurer on
account of the policy, unearned because of the cancellation
and in amount as computed on the pro rata basis, must be
actually paid to the insured or other person entitled thereto as
shown by the policy or by any endorsement thereon, or be
mailed to the insured or such person as soon as possible, and
no later than forty-five days after the date of notice of cancellation to the insured for homeowners', dwelling fire, and private passenger auto. Any such payment may be made by
cash, or by check, bank draft, or money order.
(5) This section shall not apply to contracts of life or disability insurance without provision for cancellation prior to
the date to which premiums have been paid, or to contracts of
insurance procured under the provisions of chapter 48.15
RCW. [1997 c 85 § 1; 1988 c 249 § 2; 1986 c 287 § 1; 1985
c 264 § 17; 1982 c 110 § 7; 1980 c 102 § 7; 1979 ex.s. c 199
[Title 48 RCW—page 94]
48.18.2901
48.18.2901 Renewal required—Exceptions. (1) Each
insurer shall be required to renew any contract of insurance
subject to RCW 48.18.290 unless one of the following situations exists:
(a) The insurer gives the named insured at least fortyfive days' notice in writing as provided for in RCW
48.18.290, that it proposes to refuse to renew the insurance
contract upon its expiration date; and sets forth in that writing
the actual reason for refusing to renew;
(b) At least twenty days prior to its expiration date, the
insurer has communicated, either directly or through its
agent, its willingness to renew in writing to the named
insured and has included in that writing a statement of the
amount of the premium or portion thereof required to be paid
by the insured to renew the policy, and the insured fails to
discharge when due his or her obligation in connection with
the payment of such premium or portion thereof;
(c) The insured has procured equivalent coverage prior
to the expiration of the policy period;
(d) The contract is evidenced by a written binder containing a clearly stated expiration date which has expired
according to its terms; or
(e) The contract clearly states that it is not renewable,
and is for a specific line, subclassification, or type of coverage that is not offered on a renewable basis. This subsection
(1)(e) does not restrict the authority of the insurance commissioner under this code.
(2) Any insurer failing to include in the notice required
by subsection (1)(b) of this section the amount of any
increased premium resulting from a change of rates and an
explanation of any change in the contract provisions shall
renew the policy if so required by that subsection according
to the rates and contract provisions applicable to the expiring
policy. However, renewal based on the rates and contract provisions applicable to the expiring policy shall not prevent the
insurer from making changes in the rates and/or contract provisions of the policy once during the term of its renewal after
at least twenty days' advance notice of such change has been
given to the named insured.
(3) Renewal of a policy shall not constitute a waiver or
estoppel with respect to grounds for cancellation which
existed before the effective date of such renewal, or with
respect to cancellation of fire policies under chapter 48.53
RCW.
(4) "Renewal" or "to renew" means the issuance and
delivery by an insurer of a contract of insurance replacing at
the end of the contract period a contract of insurance previously issued and delivered by the same insurer, or the issu(2004 Ed.)
The Insurance Contract
ance and delivery of a certificate or notice extending the term
of a contract beyond its policy period or term. However, (a)
any contract of insurance with a policy period or term of six
months or less whether or not made continuous for successive terms upon the payment of additional premiums shall for
the purpose of RCW 48.18.290 and 48.18.293 through
48.18.295 be considered as if written for a policy period or
term of six months; and (b) any policy written for a term
longer than one year or any policy with no fixed expiration
date, shall, for the purpose of RCW 48.18.290 and 48.18.293
through 48.18.295, be considered as if written for successive
policy periods or terms of one year.
(5) A midterm blanket reduction in rate, approved by the
commissioner, for medical malpractice insurance shall not be
considered a renewal for purposes of this section. [2002 c
347 § 1; 1993 c 186 § 1; 1988 c 249 § 3; 1986 c 287 § 2; 1985
c 264 § 20.]
Effective date—1988 c 249: See note following RCW 48.18.289.
Application—1985 c 264 §§ 17-22: See note following RCW
48.18.290.
48.18.291
48.18.291 Cancellation of private automobile insurance by insurer—Notice—Requirements. (1) A contract
of insurance predicated wholly or in part upon the use of a
private passenger automobile may not be terminated by cancellation by the insurer until at least twenty days after mailing
written notice of cancellation to the named insured at the latest address filed with the insurer by or on behalf of the named
insured, accompanied by the reason therefor. If cancellation
is for nonpayment of premium, or is within the first thirty
days after the contract has been in effect, at least ten days
notice of cancellation, accompanied by the reason therefor,
shall be given. In case of a contract evidenced by a written
binder which has been delivered to the insured, if the binder
contains a clearly stated expiration date, no additional notice
of cancellation or nonrenewal is required.
(2)(a) A notice of cancellation by the insurer as to a contract of insurance to which subsection (1) of this section
applies is not valid if sent more than sixty days after the contract has been in effect unless:
(i) The named insured fails to discharge when due any of
his or her obligations in connection with the payment of premium for the policy or any installment thereof, whether payable directly to the insurer or to its agent or indirectly under
any premium finance plan or extension of credit; or
(ii) The driver's license of the named insured, or of any
other operator who customarily operates an automobile
insured under the policy, has been suspended, revoked, or
cancelled during the policy period or, if the policy is a
renewal, during its policy period or the one hundred eighty
days immediately preceding the effective date of the renewal
policy.
(b) Modification by the insurer of automobile physical
damage coverage by the inclusion of a deductible not exceeding one hundred dollars is not a cancellation of the coverage
or of the policy.
(3) The substance of subsections (1) and (2)(a) of this
section must be set forth in each contract of insurance subject
to the provisions of subsection (1) of this section, and may be
in the form of an attached endorsement.
(2004 Ed.)
48.18.292
(4) A notice of cancellation of a policy that may be canceled only pursuant to subsection (2) of this section is not
effective unless the reason therefor accompanies or is
included in the notice of cancellation. [2003 c 248 § 5; 1985
c 264 § 18; 1979 ex.s. c 199 § 6; 1969 ex.s. c 241 § 19.]
Application—1985 c 264 §§ 17-22: See note following RCW
48.18.290.
Construction—1969 ex.s. c 241: "Sections 19 through 25 of this 1969
amendatory act shall become operative September 1, 1969, and shall apply
to policies written or renewed, or which have a renewal anniversary thereafter. Sections 19 through 25 of this 1969 amendatory act shall not apply to or
affect the validity of any notice of cancellation mailed or delivered prior to
the operative date of this amendatory act. Sections 19 through 25 of this
1969 amendatory act shall not be construed to affect cancellation of a
renewal policy, if notice of cancellation is mailed or delivered within sixty
days after the operative date of sections 19 through 25 of this amendatory
act. Sections 19 through 25 of this 1969 amendatory act shall not be construed to require notice of intention not to renew any policy which expires
less than thirty days after the operative date of sections 19 through 25 of this
1969 amendatory act." [1969 ex.s. c 241 § 25.]
48.18.292
48.18.292 Refusal to renew private automobile insurance by insurer—Change in amount of premium or
deductibles. (1) Each insurer shall be required to renew any
contract of insurance subject to RCW 48.18.291 unless one
of the following situations exists:
(a) The insurer gives the named insured at least twenty
days' notice in writing as provided for in RCW 48.18.291(1),
that it proposes to refuse to renew the insurance contract upon
its expiration date; and sets forth therein the actual reason for
refusing to renew; or
(b) At least twenty days prior to its expiration date, the
insurer has communicated its willingness to renew in writing
to the named insured, and has included therein a statement of
the amount of the premium or portion thereof required to be
paid by the insured to renew the policy, including the amount
by which the premium or deductibles have changed from the
previous policy period, and the date by which such payment
must be made, and the insured fails to discharge when due his
obligation in connection with the payment of such premium
or portion thereof; or
(c) The insured's agent or broker has procured other coverage acceptable to the insured prior to the expiration of the
policy period.
(2) Renewal of a policy shall not constitute a waiver or
estoppel with respect to grounds for cancellation which
existed before the effective date of such renewal.
(3) "Renewal" or "to renew" means the issuance and
delivery by an insurer of a contract of insurance replacing at
the end of the contract period a contract of insurance previously issued and delivered by the same insurer, or the issuance and delivery of a certificate or notice extending the term
of a contract beyond its policy period or term: PROVIDED,
HOWEVER, That any contract of insurance with a policy
period or term of six months or less whether or not made continuous for successive terms upon the payment of additional
premiums shall for the purpose of RCW 48.18.291 through
48.18.297 be considered as if written for a policy period or
term of six months: PROVIDED, FURTHER, That any policy written for a term longer than one year or any policy with
no fixed expiration date, shall, for the purpose of RCW
48.18.291 through 48.18.297, be considered as if written for
successive policy periods or terms of one year.
[Title 48 RCW—page 95]
48.18.293
Title 48 RCW: Insurance
(4) On and after January 1, 1980, no policy of insurance
subject to RCW 48.18.291 shall be issued for a policy period
or term of less than six months.
(5) No insurer shall refuse to renew the liability and/or
collision coverage of an automobile insurance policy on the
basis that an insured covered by the policy of the insurer has
submitted one or more claims under the comprehensive, road
service, or towing coverage of the policy. Nothing in this subsection shall prohibit the nonrenewal of comprehensive, road
service, or towing coverage on the basis of one or more
claims submitted by an insured. [1985 c 264 § 19; 1981 c 339
§ 17; 1979 ex.s. c 199 § 7; 1973 1st ex.s. c 152 § 3; 1969 ex.s.
c 241 § 20.]
Application—1985 c 264 §§ 17-22: See note following RCW
48.18.290.
Severability—1973 1st ex.s. c 152: See note following RCW
48.05.140.
or the application of the provision to other persons and circumstances is not
affected." [1967 ex.s. c 95 § 16.]
48.18.296
48.18.296 Contracts to which RCW 48.18.291
through 48.18.297 inapplicable. The provisions of RCW
48.18.291 through 48.18.297 shall not apply to:
(1) Contracts of insurance issued under the assigned risk
plan;
(2) Any policy covering garage, automobile sales
agency, repair shop, service station, or public parking place
operation hazards; and
(3) Contracts of insurance procured under the provisions
of chapter 48.15 RCW. [1986 c 287 § 3; 1985 c 264 § 22;
1983 1st ex.s. c 32 § 6; 1969 ex.s. c 241 § 23.]
Application—1985 c 264 §§ 17-22: See note following RCW
48.18.290.
Construction—1969 ex.s. c 241: See note following RCW 48.18.291.
Construction—1969 ex.s. c 241: See note following RCW 48.18.291.
48.18.297
48.18.293
48.18.293 Nonliability of commissioner, agents,
insurer for information giving reasons for cancellation or
refusal to renew—Proof of mailing of notice. (1) There
shall be no liability on the part of, and no cause of action of
any nature shall arise against, the insurance commissioner,
his agents, or members of his staff, or against any insurer, its
authorized representative, its agents, its employees, or any
firm, person or corporation furnishing to the insurer information as to reasons for cancellation or refusal to renew, for any
statement made by any of them in any written notice of cancellation or refusal to renew, or in any other communications,
oral or written, specifying the reasons for cancellation or
refusal to renew or the providing of information pertaining
thereto, or for statements made or evidence submitted in any
hearing conducted in connection therewith.
(2) Proof of mailing of notice of cancellation or refusal
to renew or of reasons for cancellation, to the named insured,
at the latest address filed with the insurer by or on behalf of
the named insured shall be sufficient proof of notice. [1969
ex.s. c 241 § 21.]
Construction—1969 ex.s. c 241: See note following RCW 48.18.291.
48.18.295
48.18.295 RCW 48.18.290 through 48.18.297 not to
prevent cancellation or nonrenewal, when. Nothing in
RCW 48.18.290 through 48.18.297 shall be construed to prevent the cancellation or nonrenewal of any such insurance
where:
(1) Such cancellation or nonrenewal is ordered by the
commissioner under a statutory delinquency proceeding
commenced under the provisions of chapter 48.31 RCW, or
(2) Permission for such cancellation or nonrenewal has
been given by the commissioner on a showing that the continuation of such coverage can reasonably be expected to create
a condition in the company hazardous to its policyholder, or
to its creditors, or to its members, subscribers, or stockholders, or to the public. [1985 c 264 § 21; 1969 ex.s. c 241 § 22;
1967 ex.s. c 95 § 2.]
Application—1985 c 264 §§ 17-22: See note following RCW
48.18.290.
Construction—1969 ex.s. c 241: See note following RCW 48.18.291.
Severability—1967 ex.s. c 95: "If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act,
[Title 48 RCW—page 96]
48.18.297 Private passenger automobile defined. A
private passenger automobile as used in RCW 48.18.291
through 48.18.297 shall mean:
(1) An individually owned motor vehicle of the private
passenger or station wagon type that is not used as a public or
livery conveyance for passengers, nor rented to others.
(2) Any other individually owned four-wheel motor
vehicle with a load capacity of fifteen hundred pounds or less
which is not used in the occupation, profession, or business of
the insured. [1969 ex.s. c 241 § 24.]
Construction—1969 ex.s. c 241: See note following RCW 48.18.291.
48.18.298
48.18.298 Disability insurance—Refusal to renew by
insurer. No insurer shall refuse to renew any policy of individual disability insurance issued after July 1, 1973 because
of a change in the physical or mental condition or health of
any person covered thereunder: PROVIDED, That after
approval of the insurance commissioner, an insurer may discharge its obligation to renew the contract by obtaining for
the insured coverage with another insurer which is comparable in terms of premiums and benefits. [1973 1st ex.s. c 188
§ 1.]
Severability—1973 1st ex.s. c 188: "If any provision of this act, or its
application to any person or circumstance is held invalid, the remainder of
the act, or the application of the provision to other persons or circumstances
is not affected." [1973 1st ex.s. c 188 § 5.]
48.18.299
48.18.299 Disability insurance—Cancellation by
insurer. No contract of insurance enumerated in RCW
48.18.298 shall be terminated by cancellation by the insurer
during the period of contract except for nonpayment of premium. This section shall not be deemed to affect the right of
the insurer to rescind the policy as limited and defined in
RCW 48.18.090. [1973 1st ex.s. c 188 § 2.]
Severability—1973 1st ex.s. c 188: See note following RCW
48.18.298.
48.18.300
48.18.300 Cancellation by insured. (1) Cancellation
by the insured of any policy which by its terms is cancellable
at the insured's option or of any binder based on such policy
may be effected by written notice thereof to the insurer or
surrender of the policy or binder for cancellation prior to or
on the effective date of such cancellation. In [the] event the
(2004 Ed.)
The Insurance Contract
policy or binder has been lost or destroyed and cannot be so
surrendered, the insurer may in lieu of such surrender accept
and in good faith rely upon the insured's written statement
setting forth the fact of such loss or destruction.
(2) As soon as possible, and no later than thirty days after
the receipt of the notice of cancellation from the policyholder
for homeowners', dwelling fire, and private passenger auto
insurance, the insurer shall pay to the insured or to the person
entitled thereto as shown by the insurer's records, any
unearned portion of any premium paid on the policy as computed on the customary short rate or as otherwise specified in
the policy: PROVIDED, That the refund of any unearned
portion of any premium paid on a contract of dwelling fire
insurance, homeowners' insurance, or insurance predicated
upon the use of a private passenger automobile (as defined in
RCW 48.18.297 and excluding contracts of insurance and
policies enumerated in RCW 48.18.296) shall be computed
on a pro rata basis and the insurer shall refund not less than
ninety percent of any unearned portion not exceeding one
hundred dollars, plus ninety-five percent of any unearned
portion over one hundred dollars but not exceeding five hundred dollars, and not less than ninety-seven percent of the
amount of any unearned portion in excess of five hundred
dollars. If the amount of any refund is less than two dollars,
no refund need be made. If no premium has been paid on the
policy, the insured shall be liable to the insurer for premium
for the period during which the policy was in force.
(3) The surrender of a policy to the insurer for any cause
by any person named therein as having an interest insured
thereunder shall create a presumption that such surrender is
concurred in by all persons so named.
(4) This section shall not apply to life insurance policies
or to annuity contracts. [1980 c 102 § 8; 1979 ex.s. c 199 § 8;
1955 c 303 § 16; 1947 c 79 § .18.30; Rem. Supp. 1947 §
45.18.30.]
48.18.310
48.18.310 Cancellation by commissioner. The commissioner may order the immediate cancellation of any policy the procuring or effectuation of which was accomplished
through or accompanied by a violation of this code, except in
cases where the policy by its terms is not cancellable by the
insurer and the insured did not knowingly participate in any
such violation. [1947 c 79 § .18.31; Rem. Supp. 1947 §
45.18.31.]
48.18.370
person to whom the right thereto has been assigned in writing
of record with the insurer, or given in the policy by such real
party in interest.
(2) Any person who is shown by the insurer's records to
have paid for his own account, or to have been ultimately
charged for, the premium for insurance provided by a policy
in which another person is the nominal insured, shall be
deemed such real party in interest proportionate to premium
so paid or so charged. This subsection shall not apply as to
any such dividend, refund, or distribution which would
amount to less than one dollar.
(3) This section shall not apply to contracts of group life
insurance, group annuities, or group disability insurance.
[1947 c 79 § .18.34; Rem. Supp. 1947 § 45.18.34.]
48.18.350
48.18.350 Breach of warranty prior to loss—Effect.
If any breach of a warranty or condition in any insurance contract occurs prior to a loss under the contract, such breach
shall not avoid the contract nor avail the insurer to avoid liability, unless the breach exists at the time of the loss. [1947 c
79 § .18.35; Rem. Supp. 1947 § 45.18.35.]
48.18.360
48.18.360 Assignment of policies—Life and disability. Subject to the terms of the policy relating to its assignment, life insurance policies, other than industrial or group
life insurance policies, and disability policies providing benefits for accidental death, whether such policies were heretofore or are hereafter issued, and under the terms of which the
beneficiary may be changed upon the sole request of the
insured, may be assigned either by pledge or transfer of title,
by an assignment executed by the insured alone and delivered
to the insurer, whether or not the pledgee or assignee is the
insurer. Industrial life insurance policies may be made
assignable only to a bank or trust company. Any such assignment shall entitle the insurer to deal with the assignee as the
owner or pledgee of the policy in accordance with the terms
of the assignment, until the insurer has received at its home
office written notice of termination of the assignment or
pledge, or written notice by or on behalf of some other person
claiming some interest in the policy in conflict with the
assignment. [1947 c 79 § .18.36; Rem. Supp. 1947 §
45.18.36.]
48.18.370
48.18.320
48.18.320 Annulment of liability policies. No insurance contract insuring against loss or damage through legal
liability for the bodily injury or death by accident of any individual, or for damage to the property of any person, shall be
retroactively annulled by any agreement between the insurer
and insured after the occurrence of any such injury, death, or
damage for which the insured may be liable, and any such
annulment attempted shall be void. [1947 c 79 § .18.32;
Rem. Supp. 1947 § 45.18.32.]
48.18.340
48.18.340 Dividends payable to real party in interest.
(1) Every insurer issuing participating policies, shall pay dividends, unused premium refunds or savings distributed on
account of any such policy, only to the real party in interest
entitled thereto as shown by the insurer's records, or to any
(2004 Ed.)
48.18.370 Payment discharges insurer—Life and disability. Whenever the proceeds of, or payments under a life
or disability insurance policy, heretofore or hereafter issued,
become payable and the insurer makes payment thereof in
accordance with the terms of the policy, or in accordance
with any written assignment thereof pursuant to RCW
48.18.360, the person then designated in the policy or by such
assignment as being entitled thereto, shall be entitled to
receive such proceeds or payments and to give full acquittance therefor, and such payment shall fully discharge the
insurer from all claims under the policy unless, before payment is made, the insurer has received at its home office,
written notice by or on behalf of some other person that such
other person claims to be entitled to such payment or some
interest in the policy. [1947 c 79 § .18.37; Rem. Supp. 1947
§ 45.18.37.]
[Title 48 RCW—page 97]
48.18.375
Title 48 RCW: Insurance
48.18.375
48.18.375 Assignment of interests under group insurance policy. A person whose life is insured under a group
insurance policy may, subject and pursuant to the terms of the
policy, or pursuant to an arrangement between the insured,
the group policyholder and the insurer, assign to any or all his
spouse, children, parents, or a trust for the benefit of any or
all of them, all or any part of his incidents of ownership,
rights, title, and interests, both present and future, under such
policy including specifically, but not by way of limitation,
the right to designate a beneficiary or beneficiaries thereunder and the right to have an individual policy issued to him in
case of termination of employment or of said group insurance
policy. Such an assignment by the insured, made either
before or after July 16, 1973, is valid for the purpose of vesting in the assignee, in accordance with any provisions
included therein as to the time at which it is to be effective, all
of such incidents of ownership, rights, title, and interests so
assigned, but without prejudice to the insurer on account of
any payment it may make or individual policy it may issue
prior to receipt of notice of the assignment. This section
acknowledges, declares, and codifies the existing right of
assignment of interests under group insurance policies.
[1973 1st ex.s. c 163 § 3.]
48.18.390
48.18.390 Simultaneous deaths—Payment of proceeds—Life insurance. Where the individual insured and
the beneficiary designated in a life insurance policy or policy
insuring against accidental death have died and there is not
sufficient evidence that they have died otherwise than simultaneously, the proceeds of the policy shall be distributed as if
the insured had survived the beneficiary, unless otherwise
expressly provided in the policy. [1947 c 79 § .18.39; Rem.
Supp. 1947 § 45.18.39.]
Distribution of proceeds of insurance policy when insured and beneficiary
die simultaneously: RCW 11.05.040.
48.18.400
48.18.400 Exemption of proceeds—Disability. The
proceeds or avails of all contracts of disability insurance and
of provisions providing benefits on account of the insured's
disability which are supplemental to life insurance or annuity
contracts heretofore or hereafter effected shall be exempt
from all liability for any debt of the insured, and from any
debt of the beneficiary existing at the time the proceeds are
made available for his use. [1947 c 79 § .18.40; Rem. Supp.
1947 § 45.18.40.]
48.18.410
48.18.410 Exemption of proceeds—Life. (1) The lawful beneficiary, assignee, or payee of a life insurance policy,
other than an annuity, heretofore or hereafter effected by any
person on his own life, or on the life of another, in favor of a
person other than himself, shall be entitled to the proceeds
and avails of the policy against the creditors and representatives of the insured and of the person effecting the insurance,
and such proceeds and avails shall also be exempt from all
liability for any debt of such beneficiary, existing at the time
the proceeds or avails are made available for his own use.
(2) The provisions of subsection (1) of this section shall
apply
(a) whether or not the right to change the beneficiary is
reserved or permitted in the policy; or
[Title 48 RCW—page 98]
(b) whether or not the policy is made payable to the person whose life is insured or to his estate if the beneficiary,
assignee or payee shall predecease such person; except, that
this subsection shall not be construed so as to defeat any policy provision which provides for disposition of proceeds in
the event the beneficiary shall predecease the insured.
(3) The exemptions provided by subsection (1) of this
section, subject to the statute of limitations, shall not apply
(a) to any claim to or interest in such proceeds or avails
by or on behalf of the insured, or the person so effecting the
insurance, or their administrators or executors, in whatever
capacity such claim is made or such interest is asserted; or
(b) to any claim to or interest in such proceeds or avails
by or on behalf of any person to whom rights thereto have
been transferred with intent to defraud creditors; but an
insurer shall be liable to all such creditors only as to amounts
aggregating not to exceed the amount of such proceeds or
avails remaining in the insurer's possession at the time the
insurer receives at its home office written notice by or on
behalf of such creditors, of claims to recover for such transfer, with specification of the amounts claimed; or
(c) to so much of such proceeds or avails as equals the
amount of any premiums or portion thereof paid for the insurance with intent to defraud creditors, with interest thereon,
and if prior to the payment of such proceeds or avails the
insurer has received at its home office written notice by or on
behalf of the creditor, of a claim to recover for premiums paid
with intent to defraud creditors, with specification of the
amount claimed.
(4) For the purposes of subsection (1) of this section a
policy shall also be deemed to be payable to a person other
than the insured if and to the extent that a facility-of-payment
clause or similar clause in the policy permits the insurer to
discharge its obligation after the death of the individual
insured by paying the death benefits to a person as permitted
by such clause.
(5) No person shall be compelled to exercise any rights,
powers, options or privileges under any such policy. [1947 c
79 § .18.41; Rem. Supp. 1947 § 45.18.41.]
48.18.420
48.18.420 Exemption of proceeds—Group life. (1) A
policy of group life insurance or the proceeds thereof payable
to the individual insured or to the beneficiary thereunder,
shall not be liable, either before or after payment, to be
applied to any legal or equitable process to pay any liability
of any person having a right under the policy. The proceeds
thereof, when not made payable to a named beneficiary or to
a third person pursuant to a facility-of-payment clause, shall
not constitute a part of the estate of the individual insured for
the payment of his debts.
(2) This section shall not apply to group life insurance
policies issued under RCW 48.24.040 (debtor groups) to the
extent that such proceeds are applied to payment of the obligation for the purpose of which the insurance was so issued.
[1947 c 79 § .18.42; Rem. Supp. 1947 § 45.18.42.]
48.18.430
48.18.430 Exemption of proceeds, commutation—
Annuities. (1) The benefits, rights, privileges and options
which under any annuity contract heretofore or hereafter
issued are due or prospectively due the annuitant who paid
(2004 Ed.)
The Insurance Contract
the consideration for the annuity contract, shall not be subject
to execution nor shall the annuitant be compelled to exercise
any such rights, powers or options, nor shall creditors be
allowed to interfere with or terminate the contract, except:
(a) As to amounts paid for or as premium on any such
annuity with intent to defraud creditors, with interest thereon,
and of which the creditor has given the insurer written notice
at its home office prior to the making of the payments to the
annuitant out of which the creditor seeks to recover. Any
such notice shall specify the amount claimed or such facts as
will enable the insurer to ascertain such amount, and shall set
forth such facts as will enable the insurer to ascertain the
insurance or annuity contract, the person insured or annuitant
and the payments sought to be avoided on the ground of
fraud.
(b) The total exemption of benefits presently due and
payable to any annuitant periodically or at stated times under
all annuity contracts under which he is an annuitant, shall not
at any time exceed two hundred and fifty dollars per month
for the length of time represented by such installments, and
that such periodic payment in excess of two hundred and fifty
dollars per month shall be subject to garnishee execution to
the same extent as are wages and salaries.
(c) If the total benefits presently due and payable to any
annuitant under all annuity contracts under which he is an
annuitant, shall at any time exceed payment at the rate of two
hundred and fifty dollars per month, then the court may order
such annuitant to pay to a judgment creditor or apply on the
judgment, in installments, such portion of such excess benefits as to the court may appear just and proper, after due
regard for the reasonable requirements of the judgment
debtor and his family, if dependent upon him, as well as any
payments required to be made by the annuitant to other creditors under prior court orders.
(2) The benefits, rights, privileges or options accruing
under such contract to a beneficiary or assignee shall not be
transferable nor subject to commutation, and if the benefits
are payable periodically or at stated times, the same exemptions and exceptions contained herein for the annuitant, shall
apply with respect to such beneficiary or assignee.
(3) An annuity contract within the meaning of this section shall be any obligation to pay certain sums at stated
times, during life or lives, or for a specified term or terms,
issued for a valuable consideration, regardless of whether or
not such sums are payable to one or more persons, jointly or
otherwise, but does not include payments under life insurance
contracts at stated times during life or lives, or for a specified
term or terms. [1949 c 190 § 25; 1947 c 79 § .18.43; Rem.
Supp. 1949 § 45.18.43.]
48.18.440 Spouse's rights in life insurance policy. (1)
Every life insurance policy heretofore or hereafter made payable to or for the benefit of the spouse of the insured, and
every life insurance policy heretofore or hereafter assigned,
transferred, or in any way made payable to a spouse or to a
trustee for the benefit of a spouse, regardless of how such
assignment or transfer is procured, shall, unless contrary to
the terms of the policy, inure to the separate use and benefit
of such spouse: PROVIDED, That the beneficial interest of a
spouse in a policy upon the life of a child of the spouses, however such interest is created, shall be deemed to be a commu48.18.440
(2004 Ed.)
48.18.460
nity interest and not a separate interest, unless expressly otherwise provided by the policy.
(2) In any life insurance policy heretofore or hereafter
issued upon the life of a spouse the designation heretofore or
hereafter made by such spouse of a beneficiary in accordance
with the terms of the policy, shall create a presumption that
such beneficiary was so designated with the consent of the
other spouse, but only as to any beneficiary who is the child,
parent, brother, or sister of either of the spouses. The insurer
may in good faith rely upon the representations made by the
insured as to the relationship to him of any such beneficiary.
[1947 c 79 § .18.44; Rem. Supp. 1947 § 45.18.44.]
48.18.450
48.18.450 Life insurance payable to trustee named as
beneficiary in the policy. Life insurance may be made payable to a trustee to be named as beneficiary in the policy and
the proceeds of such insurance paid to such trustee shall be
held and disposed of by the trustee as provided in a trust
agreement or declaration of trust made by the insured during
his lifetime. It shall not be necessary to the validity of any
such trust agreement or declaration of trust that it have a trust
corpus other than the right of the trustee to receive such insurance proceeds as beneficiary, and any such trustee may also
receive assets, other than insurance proceeds, by testamentary disposition and administer them according to the terms
of the trust agreement or declaration of trust as they exist at
the death of the testator. [1963 c 227 § 1.]
48.18.452
48.18.452 Life insurance designating as beneficiary a
trustee named by will. A policy of life insurance may designate as beneficiary a trustee or trustees named or to be
named by will, if the designation is made in accordance with
the provisions of the policy and the requirements of the insurance company. Immediately after the proving of the will the
proceeds of such insurance shall be paid to the trustee or
trustees named therein to be held and disposed of under the
terms of the will as they exist at the death of the testator, but
if no qualified trustee makes claim to the proceeds from the
insurance company within one year after the death of the
insured, or if satisfactory evidence is furnished the insurance
company within such one-year period showing that no trustee
can qualify to receive the proceeds, payment shall be made
by the insurance company to those thereafter entitled. The
proceeds of the insurance as collected by the trustee or trustees shall not be subject to debts of the insured and inheritance
tax to any greater extent than if such proceeds were payable
to any other named beneficiary other than the estate of the
insured. Enactment of this section shall not invalidate previous life insurance policy beneficiary designations naming
trustees of trusts established by will. [1963 c 227 § 2.]
48.18.460
48.18.460 Proof of loss—Furnishing forms—May
require oath. An insurer shall furnish, upon request of any
person claiming to have a loss under any insurance contract,
forms of proof of loss for completion by such person. But
such insurer shall not, by reason of the requirement so to furnish forms, have any responsibility for or with reference to
the completion of such proof or the manner of any such completion or attempted completion. If a person makes a claim
under a policy of insurance, the insurer may require that the
[Title 48 RCW—page 99]
48.18.470
Title 48 RCW: Insurance
person be examined under an oath administered by a person
authorized by state or federal law to administer oaths. [1995
c 285 § 17; 1949 c 190 § 26; 1947 c 79 § .18.46; Rem. Supp.
1949 § 45.18.46.]
Effective date—1995 c 285: See RCW 48.30A.900.
48.18.470
48.18.470 Claims administration—Not waiver. None
of the following acts by or on behalf of an insurer shall be
deemed to constitute a waiver of any provision of a policy or
of any defense of the insurer thereunder:
(a) Acknowledgment of the receipt of notice of loss or of
claim under the policy.
(b) Furnishing forms for reporting a loss or claim, for
giving information relative thereto, or for making proof of
loss, or receiving or acknowledging receipt of any such forms
or proofs completed or uncompleted.
(c) Investigating any loss or claim under any policy or
engaging in negotiations looking toward a possible settlement of any such loss or claim. [1947 c 79 § .18.47; Rem.
Supp. 1947 § 45.18.47.]
48.18.480
48.18.480 Discrimination prohibited. No insurer shall
make or permit any unfair discrimination between insureds or
subjects of insurance having substantially like insuring, risk,
and exposure factors, and expense elements, in the terms or
conditions of any insurance contract, or in the rate or amount
of premium charged therefor, or in the benefits payable or in
any other rights or privileges accruing thereunder. This provision shall not prohibit fair discrimination by a life insurer as
between individuals having unequal expectation of life.
[1957 c 193 § 12; 1947 c 79 § .18.48; Rem. Supp. 1947 §
45.18.480.]
48.18.510
48.18.510 Validity of noncomplying forms. Any
insurance policy, rider, or endorsement hereafter issued and
otherwise valid, which contains any condition or provision
not in compliance with the requirements of this code, shall
not be rendered invalid thereby, but shall be construed and
applied in accordance with such conditions and provisions as
would have applied had such policy, rider, or endorsement
been in full compliance with this code. [1947 c 79 § .18.51;
Rem. Supp. 1947 § 45.18.51.]
48.18.520
48.18.520 Construction of policies. Every insurance
contract shall be construed according to the entirety of its
terms and conditions as set forth in the policy, and as amplified, extended, or modified by any rider, endorsement, or
application attached to and made a part of the policy. [1947
c 79 § .18.52; Rem. Supp. 1947 § 45.18.52.]
48.18.540
48.18.540 Cancellations, denials, refusals to renew—
Written notification. Every insurer upon canceling, denying, or refusing to renew any disability policy, shall, upon
written request, directly notify in writing the applicant or
insured, as the case may be, of the reasons for the action by
the insurer and to any person covered under a group contract.
Any benefits, terms, rates, or conditions of such a contract
that are restricted, excluded, modified, increased, or reduced
shall, upon written request, be set forth in writing and supplied to the insured and to any person covered under a group
[Title 48 RCW—page 100]
contract. The written communications required by this section shall be phrased in simple language that is readily understandable to a person of average intelligence, education, and
reading ability. [1993 c 492 § 281.]
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
Short title—Severability—Savings—Captions not law—Reservation of legislative power—Effective dates—1993 c 492: See RCW
43.72.910 through 43.72.915.
48.18.543 Single premium credit insurance—Residential mortgage loan—Restrictions—Definitions. (1)
For the purposes of this section:
(a) "Licensee" means every insurance agent, broker, or
solicitor licensed under chapter 48.17 RCW.
(b) "Residential mortgage loan" means any loan primarily for personal, family, or household use secured by a mortgage or deed of trust on residential real estate upon which is
constructed or intended to be constructed a single-family
dwelling or multiple family dwelling of four or less units.
(c) "Single premium credit insurance" means credit
insurance purchased with a single premium payment at
inception of coverage.
(2) An insurer or licensee may not issue or sell any single
premium credit insurance product in connection with a residential mortgage loan unless:
(a) The term of the single premium credit insurance policy is the same as the term of the loan;
(b) The debtor is given the option to buy credit insurance
paid with monthly premiums; and
(c) The single premium credit insurance policy provides
for a full refund of premiums to the debtor if the credit insurance is canceled within sixty days of the date of the loan.
(3) This section does not apply to residential mortgage
loans if:
(a) The loan amount does not exceed ten thousand dollars, exclusive of fees;
(b) The repayment term of the loan does not exceed five
years; and
(c) The term of the single premium credit insurance does
not exceed the repayment term of the loan. [2003 c 116 § 1.]
48.18.543
48.18.545 Underwriting restrictions that apply to
personal insurance—Credit history or insurance score—
Rules. (1) For the purposes of this section:
(a) "Adverse action" has the same meaning as defined in
the fair credit reporting act, 15 U.S.C. Sec. 1681 et seq.
Adverse actions include, but are not limited to:
(i) Cancellation, denial, or nonrenewal of personal insurance coverage;
(ii) Charging a higher insurance premium for personal
insurance than would have been offered if the credit history
or insurance score had been more favorable, whether the
charge is by:
(A) Application of a rating rule;
(B) Assignment to a rating tier that does not have the
lowest available rates; or
(C) Placement with an affiliate company that does not
offer the lowest rates available to the consumer within the
affiliate group of insurance companies; or
(iii) Any reduction, adverse, or unfavorable change in
the terms of coverage or amount of any personal insurance
48.18.545
(2004 Ed.)
The Insurance Contract
due to a consumer's credit history or insurance score. A
reduction, adverse, or unfavorable change in the terms of
coverage occurs when:
(A) Coverage provided to the consumer is not as broad in
scope as coverage requested by the consumer but available to
other insureds of the insurer or any affiliate; or
(B) The consumer is not eligible for benefits such as dividends that are available through affiliate insurers.
(b) "Affiliate" has the same meaning as defined in RCW
48.31B.005(1).
(c) "Consumer" means an individual policyholder or
applicant for insurance.
(d) "Consumer report" has the same meaning as defined
in the fair credit reporting act, 15 U.S.C. Sec. 1681 et seq.
(e) "Credit history" means any written, oral, or other
communication of any information by a consumer reporting
agency bearing on a consumer's creditworthiness, credit
standing, or credit capacity that is used or expected to be
used, or collected in whole or in part, for the purpose of serving as a factor in determining personal insurance premiums
or eligibility for coverage.
(f) "Insurance score" means a number or rating that is
derived from an algorithm, computer application, model, or
other process that is based in whole or in part on credit history.
(g) "Personal insurance" means:
(i) Private passenger automobile coverage;
(ii) Homeowner's coverage, including mobile homeowners, manufactured homeowners, condominium owners, and
renter's coverage;
(iii) Dwelling property coverage;
(iv) Earthquake coverage for a residence or personal
property;
(v) Personal liability and theft coverage;
(vi) Personal inland marine coverage; and
(vii) Mechanical breakdown coverage for personal auto
or home appliances.
(h) "Tier" means a category within a single insurer into
which insureds with substantially like insuring, risk or exposure factors, and expense elements are placed for purposes of
determining rate or premium.
(2) An insurer that takes adverse action against a consumer based in whole or in part on credit history or insurance
score shall provide written notice to the applicant or named
insured. The notice must state the significant factors of the
credit history or insurance score that resulted in the adverse
action. The insurer shall also inform the consumer that the
consumer is entitled to a free copy of their consumer report
under the fair credit reporting act.
(3) An insurer shall not cancel or nonrenew personal
insurance based in whole or in part on a consumer's credit
history or insurance score. An offer of placement with an
affiliate insurer does not constitute cancellation or nonrenewal under this section.
(4) An insurer may use credit history to deny personal
insurance only in combination with other substantive underwriting factors. For the purposes of this subsection:
(a) "Deny" means an insurer refuses to offer insurance
coverage to a consumer;
(b) An offer of placement with an affiliate insurer does
not constitute denial of coverage; and
(2004 Ed.)
48.18.550
(c) An insurer may reject an application when coverage
is not bound or cancel an insurance contract within the first
sixty days after the effective date of the contract.
(5) Insurers shall not deny personal insurance coverage
based on:
(a) The absence of credit history or the inability to determine the consumer's credit history, if the insurer has received
accurate and complete information from the consumer;
(b) The number of credit inquiries;
(c) Credit history or an insurance score based on collection accounts identified with a medical industry code;
(d) The initial purchase or finance of a vehicle or house
that adds a new loan to the consumer's existing credit history,
if evident from the consumer report; however, an insurer may
consider the bill payment history of any loan, the total number of loans, or both;
(e) The consumer's use of a particular type of credit card,
charge card, or debit card; or
(f) The consumer's total available line of credit; however, an insurer may consider the total amount of outstanding
debt in relation to the total available line of credit.
(6)(a) If disputed credit history is used to determine eligibility for coverage and a consumer is placed with an affiliate that charges higher premiums or offers less favorable policy terms:
(i) The insurer shall reissue or rerate the policy retroactive to the effective date of the current policy term; and
(ii) The policy, as reissued or rerated, shall provide premiums and policy terms the consumer would have been eligible for if accurate credit history had been used to determine
eligibility.
(b) This subsection only applies if the consumer resolves
the dispute under the process set forth in the fair credit reporting act and notifies the insurer in writing that the dispute has
been resolved.
(7) The commissioner may adopt rules to implement this
section.
(8) This section applies to all personal insurance policies
issued or renewed after January 1, 2003. [2002 c 360 § 1.]
Captions not law—2002 c 360: "Captions used in this act are not any
part of the law." [2002 c 360 § 3.]
48.18.550 Victims of domestic abuse—Prohibition on
certain cancellations, denials, refusals to renew, and different rates—Domestic abuse defined. (1) No insurer shall
deny or refuse to accept an application for insurance, refuse
to insure, refuse to renew, cancel, restrict, or otherwise terminate a policy of insurance, or charge a different rate for the
same coverage, on the basis that the applicant or insured person is, has been, or may be a victim of domestic abuse.
(2) Nothing in this section shall prevent an insurer from
taking any of the actions set forth in subsection (1) of this section on the basis of loss history or medical condition or for
any other reason not otherwise prohibited by this section, any
other law, regulation, or rule.
(3) Any form filed or filed after June 11, 1998, subject to
RCW 48.18.120(1) or subject to a rule adopted under RCW
48.18.120(1) may exclude coverage for losses caused by
intentional or fraudulent acts of any insured. Such an exclusion, however, shall not apply to deny an insured's otherwisecovered property loss if the property loss is caused by an act
48.18.550
[Title 48 RCW—page 101]
48.18.553
Title 48 RCW: Insurance
of domestic abuse by another insured under the policy, the
insured claiming property loss files a police report and cooperates with any law enforcement investigation relating to the
act of domestic abuse, and the insured claiming property loss
did not cooperate in or contribute to the creation of the property loss. Payment by the insurer to an insured may be limited
to the person's insurable interest in the property less payments made to a mortgagee or other party with a legal
secured interest in the property. An insurer making payment
to an insured under this section has all rights of subrogation
to recover against the perpetrator of the act that caused the
loss.
(4) Nothing in this section prohibits an insurer from
investigating a claim and complying with chapter 48.30A
RCW.
(5) As used in this section, "domestic abuse" means: (a)
Physical harm, bodily injury, assault, or the infliction of fear
of imminent physical harm, bodily injury, or assault between
family or household members; (b) sexual assault of one family or household member by another; (c) stalking as defined
in RCW 9A.46.110 of one family or household member by
another family or household member; or (d) intentionally,
knowingly, or recklessly causing damage to property so as to
intimidate or attempt to control the behavior of another family or household member. [1998 c 301 § 1.]
48.18.553 Victims of malicious harassment—Restrictions of underwriting actions—Definitions. (1) For the
purposes of this section:
(a) "Insured" means a current policyholder or a person or
entity that is covered under the insurance policy.
(b) "Malicious harassment" has the same meaning as
RCW 9A.36.080. Under this section, the perpetrator does not
have to be identified for an act of malicious harassment to
have occurred.
(c) "Underwriting action" means an insurer:
(i) Cancels or refuses to renew an insurance policy; or
(ii) Changes the terms or benefits in an insurance policy.
(2) This section applies to property insurance policies if
the insured is:
(a) An individual;
(b) A religious organization;
(c) An educational organization; or
(d) Any other nonprofit organization that is organized
and operated for religious, charitable, or educational purposes.
(3) An insurer may not take an underwriting action on a
policy described in subsection (2) of this section because an
insured has made one or more insurance claims for any loss
that occurred during the preceding sixty months that is the
result of malicious harassment. An insurer may take an
underwriting action due to other factors that are not prohibited by this subsection.
(4) If an insured sustains a loss that is the result of malicious harassment, the insured must file a report with the
police or other law enforcement authority within thirty days
of discovery of the incident, and a law enforcement authority
must determine that a crime has occurred. The report must
contain sufficient information to provide an insurer with reasonable notice that the loss was the result of malicious harassment. The insured has a duty to cooperate with any law
48.18.553
[Title 48 RCW—page 102]
enforcement official or insurer investigation. For incidents of
malicious harassment occurring prior to July 27, 2003, the
insured must file the report within six months of the discovery of the incident.
(5) Annually, each insurer must report underwriting
actions to the commissioner if the insurer has taken an underwriting action against any insured who has filed a claim during the preceding sixty months that was the result of malicious harassment. The report must include the policy number, name of the insured, location of the property, and the
reason for the underwriting action. [2003 c 117 § 1.]
48.18.560
48.18.560 Year 2000 failure—Reinstating insurance
policy under certain circumstances. (Expires December
31, 2006.) (1) An insurer shall reinstate back to the effective
date of cancellation, with no penalties or interest, any personal lines insurance policy, subject to this chapter, that was
canceled for nonpayment of premium, if the named insured:
(a) Provides notice to the insurer, no later than ten days
after the effective date of cancellation, that the failure to pay
the premium due for the insurance policy is caused by a year
2000 failure associated with an electronic computing device
that is not under the named insured's dominion or control;
(b) Establishes that a year 2000 failure occurred and that
if it were not for the year 2000 failure, the named insured
would have been able to pay the premium due in a timely
manner;
(c) Makes a premium payment to bring the insurance
policy current as soon as possible, but no later than ten days
after the year 2000 failure has been corrected or reasonably
should have been corrected.
(2) If the named insured fails to pay the premium due
within ten days after the year 2000 failure has been corrected
or reasonably should have been corrected, the insurer's previous notice of cancellation for nonpayment of premium
remains effective.
(3)(a) The definitions in RCW 4.22.080 apply to this section unless the context clearly requires otherwise.
(b) As used in this section, unless the context clearly
requires otherwise, "named insurer" means a natural person
or a small business as defined in RCW 19.85.020.
(4) This section does not effect [affect] the cancellation
of any insurance policy that is unrelated to a year 2000 failure, or occurs before any disruption of financial or data transfer operations attributable to the year 2000 failure.
(5) This section does not apply to any claim or cause of
action filed after December 31, 2003.
(6) This section expires December 31, 2006. [1999 c
369 § 3.]
Effective date—1999 c 369: See note following RCW 4.22.080.
48.18.565
48.18.565 Homeowner's insurance—Foster parent.
An insurer licensed to write homeowner's insurance in this
state shall not deny an application for a homeowner's insurance policy, or cancel, refuse to renew, or modify an existing
homeowner's insurance policy for the principal reason that
the applicant or insured is a foster parent licensed under chapter 74.15 RCW. [2004 c 84 § 1.]
(2004 Ed.)
Variable Contract Act
Chapter 48.18A
Chapter 48.18A RCW
VARIABLE CONTRACT ACT
Sections
48.18A.010 Short title—Intent.
48.18A.020 Separate accounts authorized—Allocations—Benefits—Limitations—Valuation—Sale, transfer, or exchange of assets.
48.18A.030 Statements required in contracts—Payment on death, incidental benefit provision.
48.18A.035 Return of policy and refund of premium—Notice required—
Effect of return.
48.18A.040 Requirements for operation under this chapter—Considerations—Authorization of subsidiary or affiliate—Exceptions.
48.18A.050 Applicability of other code provisions—Contract requirements.
48.18A.060 Licensing requirement.
48.18A.070 Authority of commissioner.
48.18A.900 Effective date—1969 c 104.
Reviser's note: Powers, duties, and functions of the department of
licensing relating to securities were transferred to the department of financial
institutions by 1993 c 472, effective October 1, 1993. See RCW 43.320.011.
48.18A.010
48.18A.010 Short title—Intent. This chapter shall be
known as the "Variable Contract Act" and is intended to
authorize the sale of both individual and group variable contracts. [1969 c 104 § 1.]
48.18A.020
48.18A.020 Separate accounts authorized—Allocations—Benefits—Limitations—Valuation—Sale, transfer, or exchange of assets. A domestic life insurer may, by
or pursuant to resolution of its board of directors, establish
one or more separate accounts, and may allocate thereto
amounts (including without limitation proceeds applied
under optional modes of settlement or under dividend
options) to provide for life insurance or annuities (and other
benefits incidental thereto), payable in fixed or variable
amounts or both, subject to the following:
(1) The income, gains, and losses, realized or unrealized,
from assets allocated to a separate account shall be credited to
or charged against the account, without regard to other
income, gains, or losses of the insurer.
(2)(a) Except as hereinafter provided, amounts allocated
to any separate account and accumulations thereon may be
invested and reinvested without regard to any requirements
or limitations prescribed by the laws of this state governing
the investments of life insurers: PROVIDED, That to the
extent that the insurer's reserve liability with regard to (i) benefits guaranteed as to dollar amount and duration, and (ii)
funds guaranteed as to principal amount or stated rate of
interest is maintained in any separate account, a portion of the
assets of such separate account at least equal to such reserve
liability shall be invested under such conditions as the commissioner may prescribe. The investments in such separate
account or accounts shall not be taken into account in applying the investment limitations applicable to the investments
of the insurer.
(b) With respect to seventy-five percent of the market
value of the total assets in a separate account no insurer shall
purchase or otherwise acquire the securities of any issuer,
other than securities issued or guaranteed as to principal or
interest by the United States, if immediately after such purchase or acquisition the market value of such investment,
together with prior investments of such separate account in
such security taken at market value, would exceed ten percent
(2004 Ed.)
48.18A.020
of the market value of the assets of such separate account:
PROVIDED, That the commissioner may waive such limitation if, in his opinion, such waiver will not render the operation of such separate account hazardous to the public or the
policyholders in this state.
(c) Unless otherwise permitted by law or approved by
the commissioner, no insurer shall purchase or otherwise
acquire for its separate accounts the voting securities of any
issuer if as a result of such acquisition the insurer and its separate accounts, in the aggregate, will own more than ten percent of the total issued and outstanding voting securities of
such issuer: PROVIDED, That the foregoing shall not apply
with respect to securities held in separate accounts, the voting
rights in which are exercisable only in accordance with
instructions from persons having interests in such accounts.
(d) The limitations provided in paragraphs (b) and (c) of
this subsection shall not apply to the investment with respect
to a separate account in the securities of an investment company registered under the United States Investment Company
Act of 1940: PROVIDED, That the investments of such
investment company shall comply in substance therewith.
(3) Unless otherwise approved by the commissioner,
assets allocated to a separate account shall be valued at their
market value on the date of valuation, or if there is no readily
available market, then as provided under the terms of the contract or the rules or other written agreement applicable to
such separate account: PROVIDED, That unless otherwise
approved by the commissioner, the portion, if any, of the
assets of such separate account equal to the insurer's reserve
liability with regard to the guaranteed benefits and funds
referred to in subsection (2) of this section shall be valued in
accordance with the rules otherwise applicable to the
insurer's assets.
(4) Amounts allocated to a separate account in the exercise of the power granted by this chapter shall be owned by
the insurer and the insurer shall not be, nor hold itself out to
be, a trustee with respect to such amounts. If and to the extent
so provided under the applicable contracts, that portion of the
assets of any such separate account equal to the reserves and
other contract liabilities with respect to such account shall not
be chargeable with liabilities arising out of any other business
the insurer may conduct.
(5) No sale, exchange or other transfer of assets may be
made by an insurer between any of its separate accounts or
between any other investment account and one or more of its
separate accounts unless, in case of a transfer into a separate
account, such transfer is made solely to establish the account
or to support the operation of the contracts with respect to the
separate account to which the transfer is made, and unless
such transfer, whether into or from a separate account, is
made (a) by a transfer of cash, or (b) by a transfer of securities
having a readily determinable market value: PROVIDED,
That such transfer of securities is approved by the commissioner. The commissioner may approve other transfers
among such accounts, if, in his opinion, such transfers would
not be inequitable.
(6) To the extent such insurer deems it necessary to comply with any applicable federal or state law, such insurer,
with respect to any separate account, including without limitation any separate account which is a management investment company or a unit investment trust, may provide for
[Title 48 RCW—page 103]
48.18A.030
Title 48 RCW: Insurance
persons having interest therein, as may be appropriate, voting
and other rights and special procedures for the conduct of the
business of such account, including without limitation, special rights and procedures relating to investment policy,
investment advisory services, selection of independent public
accountants, and the selection of a committee, the members
of which need not be otherwise affiliated with such insurer, to
manage the business of such account. [1973 1st ex.s. c 163 §
4; 1969 c 104 § 2.]
48.18A.030
48.18A.030 Statements required in contracts—Payment on death, incidental benefit provision. (1) Every
variable contract providing benefits payable in variable
amounts delivered or issued for delivery in this state shall
contain a statement of the essential features of the procedures
to be followed by the insurer in determining the dollar
amount of such variable benefits. Any such contract under
which the benefits vary to reflect investment experience,
including a group contract and any certificate in evidence of
variable benefits issued thereunder, shall state that such dollar amount will so vary and shall contain on its first page a
statement to the effect that the benefits thereunder are on a
variable basis.
(2) Variable annuity contracts delivered or issued for
delivery in this state may include as an incidental benefit provision for payment on death during the deferred period of an
amount not in excess of the greater of the sum of the premiums or stipulated payments paid under the contract or the
value of the contract at time of death. For this purpose such
benefit shall not be deemed to be life insurance and therefore
not subject to any statutory provisions governing life insurance contracts. A provision for any other benefits on death
during the deferred period will be subject to such insurance
law provisions. [1973 1st ex.s. c 163 § 5; 1969 c 104 § 3.]
48.18A.035
48.18A.035 Return of policy and refund of premium—Notice required—Effect of return. Every individual variable contract issued shall have printed on its face or
attached thereto a notice stating in substance that the policy
owner shall be permitted to return the policy within ten days
after it is received by the policy owner and to have the market
value of the assets purchased by its premium, less taxes and
investment brokerage commissions, if any, refunded, if, after
examination of the policy, the policy owner is not satisfied
with it for any reason. An additional ten percent penalty shall
be added to any premium refund due which is not paid within
thirty days of return of the policy to the insurer or agent. If a
policy owner pursuant to such notice returns the policy to the
insurer at its home or branch office or to the agent through
whom it was purchased, it shall be void from the beginning
and the parties shall be in the same position as if no policy
had been issued. [1983 1st ex.s. c 32 § 7; 1982 c 181 § 15.]
Effective date—1982 c 181 § 15: "Section 15 of this act is necessary
for the immediate preservation of the public peace, health, and safety, the
support of the state government and its existing public institutions, and shall
take effect May 1, 1982." [1982 c 181 § 26.]
Severability—1982 c 181: See note following RCW 48.03.010.
48.18A.040
48.18A.040 Requirements for operation under this
chapter—Considerations—Authorization of subsidiary
or affiliate—Exceptions. No insurer shall deliver or issue,
[Title 48 RCW—page 104]
for delivery within this state, contracts under this chapter
unless it is licensed or organized to do a life insurance or
annuity business in this state, and unless the commissioner is
satisfied that its condition or method of operation in connection with the issuance of such contracts will not render its
operation hazardous to the public or its policyholders in this
state. In this connection, the commissioner shall consider
among other things:
(1) The history and financial condition of the insurer;
(2) The character, responsibility and fitness of the officers and directors of the insurer; and
(3) The law and regulation under which the insurer is
authorized in the state of domicile to issue variable contracts.
An insurer which issues variable contracts and which is
a subsidiary of, or affiliated through common management or
ownership with, another life insurer authorized to do business
in this state may be deemed to have met the provisions of this
section if either it or the parent or affiliated company meets
the requirements hereof: PROVIDED, That no insurer may
provide variable benefits in its contracts unless it is an admitted insurer having and continually maintaining a combined
capital and surplus of at least five million dollars. [1982 c
181 § 10; 1969 c 104 § 4.]
Severability—1982 c 181: See note following RCW 48.03.010.
48.18A.050
48.18A.050 Applicability of other code provisions—
Contract requirements. The provisions of RCW 48.23.020,
48.23.030, 48.23.080 through 48.23.120, 48.23.140,
48.23.150, 48.23.200 through 48.23.240, 48.23.310, and
48.23.360, and the provisions of chapters 48.24 and 48.76
RCW are inapplicable to variable contracts. Any provision in
the code requiring contracts to be participating is not applicable to variable contracts. Except as otherwise provided in
this chapter, all pertinent provisions of the insurance code
apply to separate accounts and contracts relating thereto.
Any individual variable life insurance or individual variable
annuity contract delivered or issued for delivery in this state
must contain grace, reinstatement, and nonforfeiture provisions appropriate to those contracts, and any variable life
insurance contract must provide that the investment experience of the separate account may not operate to reduce the
death benefit below an amount equal to the face amount of
the contract at the time the contract was issued. Any individual variable life insurance contract may contain a provision
for deduction from the death proceeds of amounts of due and
unpaid premiums or of indebtedness which are appropriate to
that contract. The reserve liability for variable annuities must
be established in accordance with actuarial procedures that
recognize the variable nature of the benefits provided and any
mortality guarantees. [2003 c 248 § 6; 1983 c 3 § 150; 1979
c 157 § 2; 1973 1st ex.s. c 163 § 6; 1969 c 104 § 5.]
48.18A.060
48.18A.060 Licensing requirement. No person shall
be or act as an agent for the solicitation or sale of variable
contracts except while duly appointed and licensed under the
insurance code as a life insurance agent with respect to the
insurer, and while duly licensed as a security salesman or
securities broker under a license issued by the director of
financial institutions pursuant to the securities act of this
state; except that any person who participates only in the sale
(2004 Ed.)
Rates
48.19.030
or offering for sale of variable contracts which fund corporate
plans meeting the requirements for qualification under sections 401 or 403 of the United States internal revenue code
need not be licensed pursuant to the securities act of this state.
[1994 c 92 § 502; 1973 1st ex.s. c 163 § 7; 1969 c 104 § 6.]
48.19.470
48.18A.070 Authority of commissioner. Notwithstanding any other provision of law, the commissioner shall
have sole and exclusive authority to regulate the issuance and
sale of variable contracts; except for the examination, issuance or renewal, suspension or revocation, of a security salesman's license issued to persons selling variable contracts. To
carry out the purposes and provisions of this chapter he or she
may independently, and in concert with the director of financial institutions, issue such reasonable rules and regulations
as may be appropriate. [1994 c 92 § 503; 1969 c 104 § 7.]
Anti-compact law: RCW 48.30.020.
48.18A.070
48.18A.900 Effective date—1969 c 104. This 1969 act
shall take effect July 1, 1969. [1969 c 104 § 10.]
48.18A.900
Chapter 48.19
Chapter 48.19 RCW
RATES
Sections
48.19.010
48.19.020
48.19.030
48.19.035
48.19.040
48.19.043
48.19.050
48.19.060
48.19.070
48.19.080
48.19.090
48.19.100
48.19.110
48.19.120
48.19.140
48.19.150
48.19.160
48.19.170
48.19.180
48.19.190
48.19.200
48.19.210
48.19.220
48.19.230
48.19.240
48.19.250
48.19.260
48.19.270
48.19.280
48.19.290
48.19.300
48.19.310
48.19.320
48.19.330
48.19.340
48.19.350
48.19.360
48.19.370
48.19.380
48.19.390
48.19.400
48.19.410
48.19.420
48.19.430
48.19.450
48.19.460
(2004 Ed.)
Scope of chapter.
Rate standard.
Making of rates—Criteria.
Making of rates—Definitions—Personal insurance—Use of
credit history or insurance scores—Rules.
Filing required—Contents.
Forms of commercial property casualty policies—Legislative
intent—Issuance prior to filing—Disapproval by commissioner—Definition.
Filings by rating bureau.
Filings—Review, waiting period, disapproval.
Special filings.
Waiver of filing.
Excess rates on specific risks.
Disapproval of filing.
Disapproval of special filing.
Subsequent disapproval.
Rating organizations—Discrimination—"Subscriber" defined.
Subscribership not required.
Rating organization license.
Application for license.
Issuance of license.
Suspension or revocation of license.
Notice of changes.
Subscribers—Rights, limitations.
Review of rules and refusal to admit insurers.
Subscriber committees.
Rules cannot affect dividends.
Cooperative activities.
Technical services.
Records—Examinations.
Deviations.
Appeal from rating organization's action.
Service to insureds.
Complaints of insureds.
Advisory organizations—Definition.
Requisites of advisory organization.
Desist orders.
Disqualification of data.
Joint underwriting or joint reinsurance.
Recording and reporting of loss and expense experience.
Exchange of information.
False or misleading information.
Assigned risks.
Examination of contracts.
Rate agreements.
Penalties.
Casualty rate filing—Credit.
Automobile insurance—Premium reductions for older
insureds completing accident prevention course.
48.19.480
48.19.490
48.19.500
48.19.501
Automobile insurance—Premium reductions for persons eligible under RCW 48.19.460.
Automobile insurance—Completion of accident prevention
course, certificate.
Automobile insurance—Continued eligibility for discount.
Motor vehicle insurance—Seat belts, etc.
Motor vehicle insurance—Anti-theft devices—Lights—Multiple vehicles.
Discrimination prohibited: RCW 48.18.480.
Rate wars prohibited: RCW 48.30.240.
48.19.010
48.19.010 Scope of chapter. (1) Except as is otherwise
expressly provided the provisions of this chapter apply to all
insurances upon subjects located, resident or to be performed
in this state except:
(a) Life insurance;
(b) disability insurance;
(c) reinsurance except as to joint reinsurance as provided
in RCW 48.19.360;
(d) insurance against loss of or damage to aircraft, their
hulls, accessories, and equipment, or against liability, other
than workers' compensation and employers' liability, arising
out of the ownership, maintenance or use of aircraft;
(e) insurance of vessels or craft, their cargoes, marine
builders' risks, marine protection and indemnity; and such
other risks commonly insured under marine, as distinguished
from inland marine, insurance contracts as may be defined by
ruling of the commissioner for the purposes of this provision;
(f) title insurance.
(2) Except, that every insurer shall, as to disability insurance, before using file with the commissioner its manual of
classification, manual of rules and rates, and any modifications thereof. [1987 c 185 § 24; 1947 c 79 § .19.01; Rem.
Supp. 1947 § 45.19.01.]
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
48.19.020
48.19.020 Rate standard. Premium rates for insurance
shall not be excessive, inadequate, or unfairly discriminatory.
[1983 1st ex.s. c 32 § 13; 1947 c 79 § .19.02; Rem. Supp.
1947 § 45.19.02.]
48.19.030
48.19.030 Making of rates—Criteria. Rates shall be
used, subject to the other provisions of this chapter, only if
made in accordance with the following provisions:
(1) In the case of insurances under standard fire policies
and that part of marine and transportation insurances not
exempted under RCW 48.19.010, manual, minimum, class or
classification rates, rating schedules or rating plans, shall be
made and adopted; except as to specific rates on inland
marine risks individually rated, which risks are not reasonably susceptible to manual or schedule rating, and which
risks by general custom of the business are not written
according to manual rates or rating plans.
(2) In the case of casualty and surety insurances:
(a) The systems of expense provisions included in the
rates for use by any insurer or group of insurers may differ
from those of other insurers or groups of insurers to reflect
the requirements of the operating methods of any such
insurer or group with respect to any kind of insurance, or with
respect to any subdivision or combination thereof for which
[Title 48 RCW—page 105]
48.19.035
Title 48 RCW: Insurance
subdivision or combination separate expense provisions are
applicable.
(b) Risks may be grouped by classifications for the
establishment of rates and minimum premiums. Classification rates may be modified to produce rates for individual
risks in accordance with rating plans which establish standards for measuring variations in hazards or expense provisions, or both. Such standards may measure any differences
among risks that can be demonstrated to have a probable
effect upon losses or expenses.
(3) Due consideration in making rates for all insurances
shall be given to:
(a) Past and prospective loss experience within this state
for experience periods acceptable to the commissioner. If the
information is not available or is not statistically credible, an
insurer may use loss experience in those states which are
likely to produce loss experience similar to that in this state.
(b) Conflagration and catastrophe hazards, where
present.
(c) A reasonable margin for underwriting profit and contingencies.
(d) Dividends, savings and unabsorbed premium deposits allowed or returned by insurers to their policyholders,
members, or subscribers.
(e) Past and prospective operating expenses.
(f) Past and prospective investment income.
(g) All other relevant factors within and outside this
state.
(4) In addition to other factors required by this section,
rates filed by an insurer on its own behalf may also be related
to the insurer's plan of operation and plan of risk classification.
(5) Except to the extent necessary to comply with RCW
48.19.020 uniformity among insurers in any matter within the
scope of this section is neither required nor prohibited. [1989
c 25 § 3; 1947 c 79 § .19.03; Rem. Supp. 1947 § 45.19.03.]
Effective date—1989 c 25: See note following RCW 48.18.100.
48.19.035
48.19.035 Making of rates—Definitions—Personal
insurance—Use of credit history or insurance scores—
Rules. (1) For the purposes of this section:
(a) "Affiliate" has the same meaning as defined in RCW
48.31B.005(1).
(b) "Consumer" means an individual policyholder or
applicant for insurance.
(c) "Credit history" means any written, oral, or other
communication of any information by a consumer reporting
agency bearing on a consumer's creditworthiness, credit
standing, or credit capacity that is used or expected to be
used, or collected in whole or in part, for the purpose of serving as a factor in determining personal insurance premiums
or eligibility for coverage.
(d) "Insurance score" means a number or rating that is
derived from an algorithm, computer application, model, or
other process that is based in whole or in part on credit history.
(e) "Personal insurance" means:
(i) Private passenger automobile coverage;
[Title 48 RCW—page 106]
(ii) Homeowner's coverage, including mobile homeowners, manufactured homeowners, condominium owners, and
renter's coverage;
(iii) Dwelling property coverage;
(iv) Earthquake coverage for a residence or personal
property;
(v) Personal liability and theft coverage;
(vi) Personal inland marine coverage; and
(vii) Mechanical breakdown coverage for personal auto
or home appliances.
(2)(a) Credit history shall not be used to determine personal insurance rates, premiums, or eligibility for coverage
unless the insurance scoring models are filed with the commissioner. Insurance scoring models include all attributes
and factors used in the calculation of an insurance score.
RCW 48.19.040(5) does not apply to any information filed
under this subsection, and the information shall be withheld
from public inspection and kept confidential by the commissioner. All information filed under this subsection shall be
considered trade secrets under RCW 48.02.120(3). Information filed under this subsection may be made public by the
commissioner for the sole purpose of enforcement actions
taken by the commissioner.
(b) Each insurer that uses credit history or an insurance
score to determine personal insurance rates, premiums, or eligibility for coverage must file all rates and rating plans for
that line of coverage with the commissioner. This requirement applies equally to a single insurer and two or more affiliated insurers. RCW 48.19.040(5) applies to information
filed under this subsection except that any eligibility rules or
guidelines shall be withheld from public inspection under
RCW 48.02.120(3) from the date that the information is filed
and after it becomes effective.
(3) Insurers shall not use the following types of credit
history to calculate a personal insurance score or determine
personal insurance premiums or rates:
(a) The absence of credit history or the inability to determine the consumer's credit history, unless the insurer has
filed actuarial data segmented by demographic factors in a
manner prescribed by the commissioner that demonstrates
compliance with RCW 48.19.020;
(b) The number of credit inquiries;
(c) Credit history or an insurance score based on collection accounts identified with a medical industry code;
(d) The initial purchase or finance of a vehicle or house
that adds a new loan to the consumer's existing credit history,
if evident from the consumer report; however, an insurer may
consider the bill payment history of any loan, the total number of loans, or both;
(e) The consumer's use of a particular type of credit card,
charge card, or debit card; or
(f) The consumer's total available line of credit; however, an insurer may consider the total amount of outstanding
debt in relation to the total available line of credit.
(4) If a consumer is charged higher premiums due to disputed credit history, the insurer shall rerate the policy retroactive to the effective date of the current policy term. As
rerated, the consumer shall be charged the same premiums
they would have been charged if accurate credit history was
used to calculate an insurance score. This subsection applies
only if the consumer resolves the dispute under the process
(2004 Ed.)
Rates
set forth in the fair credit reporting act and notifies the insurer
in writing that the dispute has been resolved.
(5) The commissioner may adopt rules to implement this
section.
(6) This section applies to all personal insurance policies
issued or renewed on or after June 30, 2003. [2004 c 86 § 1;
2002 c 360 § 2.]
Captions not law—2002 c 360: See note following RCW 48.18.545.
48.19.040
48.19.040 Filing required—Contents. (1) Every
insurer or rating organization shall, before using, file with the
commissioner every classifications manual, manual of rules
and rates, rating plan, rating schedule, minimum rate, class
rate, and rating rule, and every modification of any of the
foregoing which it proposes. The insurer need not so file any
rate on individually rated risks as described in subdivision (1)
of RCW 48.19.030; except that any such specific rate made
by a rating organization shall be filed.
(2) Every such filing shall indicate the type and extent of
the coverage contemplated and must be accompanied by sufficient information to permit the commissioner to determine
whether it meets the requirements of this chapter. An insurer
or rating organization shall offer in support of any filing:
(a) The experience or judgment of the insurer or rating
organization making the filing;
(b) An exhibit detailing the major elements of operating
expense for the types of insurance affected by the filing;
(c) An explanation of how investment income has been
taken into account in the proposed rates; and
(d) Any other information which the insurer or rating
organization deems relevant.
(3) If an insurer has insufficient loss experience to support its proposed rates, it may submit loss experience for similar exposures of other insurers or of a rating organization.
(4) Every such filing shall state its proposed effective
date.
(5) A filing made pursuant to this chapter shall be
exempt from the provisions of RCW 48.02.120(3). However,
the filing and all supporting information accompanying it
shall be open to public inspection only after the filing
becomes effective.
(6) Where a filing is required no insurer shall make or
issue an insurance contract or policy except in accordance
with its filing then in effect, except as is provided by RCW
48.19.090. [1994 c 131 § 8; 1989 c 25 § 4; 1983 1st ex.s. c 32
§ 14; 1947 c 79 § .19.04; Rem. Supp. 1947 § 45.19.04.]
Effective date—1989 c 25: See note following RCW 48.18.100.
48.19.043
48.19.043 Forms of commercial property casualty
policies—Legislative intent—Issuance prior to filing—
Disapproval by commissioner—Definition. (1) It is the
intent of the legislature to assist the purchasers of commercial
property casualty insurance by allowing policies to be issued
more expeditiously and provide a more competitive market
for rates.
(2) Notwithstanding the provisions of RCW
48.19.040(1), commercial property casualty policies may be
issued prior to filing the rates. All commercial property casualty rates shall be filed with the commissioner within thirty
days after an insurer issues any policy using them.
(2004 Ed.)
48.19.050
(3) If, within thirty days after a commercial property
casualty rate has been filed, the commissioner finds that the
rate does not meet the requirements of this chapter, the commissioner shall disapprove the filing and give notice to the
insurer or rating organization that made the filing, specifying
how the filing fails to meet the requirements and stating
when, within a reasonable period thereafter, the filing shall
be deemed no longer effective. The commissioner may
extend the time for review another fifteen days by giving
notice to the insurer prior to the expiration of the original
thirty-day period.
(4) Upon a final determination of a disapproval of a rate
filing under subsection (3) of this section, the insurer shall
issue an endorsement changing the rate to comply with the
commissioner's disapproval from the date the rate is no
longer effective.
(5) For purposes of this section, "commercial property
casualty" means insurance pertaining to a business, profession, occupation, nonprofit organization, or public entity for
the lines of property and casualty insurance defined in RCW
48.11.040, 48.11.050, 48.11.060, or 48.11.070.
(6) Except as provided in subsection (4) of this section,
the disapproval shall not affect any contract made or issued
prior to the expiration of the period set forth in the notice of
disapproval.
(7) In the event a hearing is held on the actions of the
commissioner under subsection (3) of this section, the burden
of proof is on the commissioner. [2003 c 248 § 7; 1997 c 428
§ 2.]
48.19.050 Filings by rating bureau. (1) If so authorized by an insurer, the commissioner shall accept, in lieu of
filings by the insurer, filings on its behalf made by a rating
organization then licensed as provided in this chapter.
(2) As to fire insurance under a standard form fire policy,
and the following insurances (other than vehicle insurance
coverages) when issued as part of a standard form fire policy,
an insurer may so authorize a rating organization to make all
[of] its filings only, and may not make a portion of such filings upon its own behalf and authorize a rating organization
to make other such filings:
(a) Additional property insurance coverages; or
(b) Coverages including any kind of insurance in addition to fire for a single undivided premium.
(3) Except, that notwithstanding the provisions of subsection (2) an insurer which prior to the first day of January,
1947, made its own filings in this state as to a particular class
of fire risks, and its filings in this state as to other classes of
fire risks were made by a rating organization authorized by
the insurer so to do, may:
(a) Continue to make all [of] its own filings as to such
specific class of risks or authorize a rating organization to
make its filings as to such specific class of risks or any part
thereof; and
(b) Authorize a different rating organization to make all
only of its filings [all of its filings only] as to all other classes
of risks insured by it in this state against fire under the standard form fire policy; or
(c) Make all [of] its own filings as to all classes of risks
insured by it against fire under the standard form fire policy,
or make all [of] its own such filings except as to any which
48.19.050
[Title 48 RCW—page 107]
48.19.060
Title 48 RCW: Insurance
may relate to any such specific class of risks, which filings so
excepted the insurer may authorize a rating organization to
make; or
(d) Authorize a rating organization to make all only of its
filings [all of its filings only] as to all classes or risks insured
by it against fire in this state under the standard form fire policy. [1957 c 193 § 13; 1947 c 79 § .19.05; Rem. Supp. 1947
§ 45.19.05.]
48.19.060
48.19.060 Filings—Review, waiting period, disapproval. (1) The commissioner shall review a filing as soon as
reasonably possible after made, to determine whether it meets
the requirements of this chapter.
(2) Except as provided in RCW 48.19.070 and
48.19.043:
(a) No such filing shall become effective within thirty
days after the date of filing with the commissioner, which
period may be extended by the commissioner for an additional period not to exceed fifteen days if he or she gives
notice within such waiting period to the insurer or rating
organization which made the filing that he or she needs such
additional time for the consideration of the filing. The commissioner may, upon application and for cause shown, waive
such waiting period or part thereof as to a filing that he or she
has not disapproved.
(b) A filing shall be deemed to meet the requirements of
this chapter unless disapproved by the commissioner within
the waiting period or any extension thereof. [1997 c 428 § 4;
1989 c 25 § 5; 1947 c 79 § .19.06; Rem. Supp. 1947 §
45.19.06.]
with and approved by the commissioner, a rate in excess of
that provided by a filing otherwise applicable may be used on
any specific risk. [1947 c 79 § .19.09; Rem. Supp. 1947 §
45.19.09.]
48.19.100
48.19.100 Disapproval of filing. If within the waiting
period or any extension thereof as provided in RCW
48.19.060, the commissioner finds that a filing does not meet
the requirements of this chapter, he shall disapprove such filing, and shall give notice of such disapproval, specifying the
respect in which he finds the filing fails to meet such requirements, and stating that the filing shall not become effective,
to the insurer or rating organization which made the filing.
[1989 c 25 § 6; 1947 c 79 § .19.10; Rem. Supp. 1947 §
45.19.10.]
Effective date—1989 c 25: See note following RCW 48.18.100.
48.19.110
48.19.110 Disapproval of special filing. (1) If within
thirty days after a special filing subject to RCW 48.19.070
has become effective, the commissioner finds that the filing
does not meet the requirements of this chapter, he shall disapprove the filing and shall give notice to the insurer or rating
organization which made the filing, specifying in what
respects he finds that the filing fails to meet such requirements and stating when, within a reasonable period thereafter, the filing shall be deemed no longer effective.
(2) Such disapproval shall not affect any contract made
or issued prior to the expiration of the period set forth in the
notice of disapproval. [1947 c 79 § .19.11; Rem. Supp. 1947
§ 45.19.11.]
Effective date—1989 c 25: See note following RCW 48.18.100.
48.19.120
48.19.070
48.19.070 Special filings. The following special filings,
when not covered by a previous filing, shall become effective
when filed and shall be deemed to meet the requirements of
this chapter until such time as the commissioner reviews the
filing and for so long thereafter as the filing remains in effect:
(1) Special filings with respect to surety or guaranty
bonds required by law or by court or executive order or by
order, rule or regulation of a public body.
(2) Specific rates on inland marine risks individually
rated by a rating organization, which risks are not reasonably
susceptible to manual or schedule rating, and which risks by
general custom of the business are not written according to
manual rates or rating plans. [1947 c 79 § .19.07; Rem. Supp.
1947 § 45.19.07.]
48.19.080
48.19.080 Waiver of filing. Under such rules and regulations as he shall adopt the commissioner may, by order,
suspend or modify the requirement of filing as to any kind of
insurance. Such orders, rules and regulations shall be made
known to insurers and rating organizations affected thereby.
The commissioner may make such examination as he may
deem advisable to ascertain whether any rates affected by
such order meet the standard prescribed in RCW 48.19.020.
[1981 c 339 § 18; 1947 c 79 § .19.08; Rem. Supp. 1947 §
45.19.08.]
48.19.090
48.19.090 Excess rates on specific risks. Upon written
application of the insured, stating his reasons therefor, filed
[Title 48 RCW—page 108]
48.19.120 Subsequent disapproval. (1) If at any time
subsequent to the applicable review period provided in RCW
48.19.060 or 48.19.110, the commissioner finds that a filing
does not meet the requirements of this chapter, he shall, after
a hearing, notice of which was given to every insurer and rating organization which made such filing, issue his order specifying in what respect he finds that such filing fails to meet
the requirements of this chapter, and stating when, within a
reasonable period thereafter, the filings shall be deemed no
longer effective.
(2) Such order shall not affect any contract or policy
made or issued prior to the expiration of the period set forth
in the order.
(3) Any person aggrieved with respect to any filing then
in effect, other than the insurer or rating organization which
made the filing, may make written application to the commissioner for a hearing thereon. The application shall specify the
grounds to be relied upon by the applicant. If the commissioner finds that the application is made in good faith, that the
applicant would be so aggrieved if his grounds are established, and that such grounds otherwise justify holding the
hearing, he shall, within thirty days after receipt of the application, hold a hearing as required in subsection (1) of this section. [1989 c 25 § 7; 1983 1st ex.s. c 32 § 15; 1947 c 79 §
.19.12; Rem. Supp. 1947 § 45.19.12.]
Effective date—1989 c 25: See note following RCW 48.18.100.
48.19.140
48.19.140 Rating organizations—Discrimination—
"Subscriber" defined. (1) Every rating organization operat(2004 Ed.)
Rates
ing in this state shall furnish its services without discrimination as between its subscribers.
(2) "Subscriber," for the purposes of this chapter and
where the context does not otherwise specify, means any
insurer which employs the services of a rating organization
for the purpose of making filings, whether or not the insurer
is a "member" of such rating organization.
(3) This chapter is not intended to and does not govern or
affect the "membership" relation as such between a rating
organization and insurers who are its "members." [1947 c 79
§ .19.14; Rem. Supp. 1947 § 45.19.14.]
48.19.150
48.19.150 Subscribership not required. No provision
of this code shall require, or be deemed to require, any insurer
to be a subscriber of, or in any other respect affiliated with,
any rating organization. [1947 c 79 § .19.15; Rem. Supp.
1947 § 45.19.15.]
48.19.210
competent, trustworthy and otherwise qualified so to act, and
that its constitution, articles of agreement or association or
certificate of incorporation or trust agreement, and its bylaws,
rules and regulations governing the conduct of its business
conform to the requirements of law, he shall, upon payment
of a license fee of twenty-five dollars, issue a license specifying the kinds of insurance, or subdivisions or class of risk or
part or combination thereof for which the applicant is authorized to act as a rating organization.
(2) The commissioner shall grant or deny in whole or in
part every such application within sixty days of the date of its
filing with him.
(3) A license issued pursuant to this section shall remain
in effect for three years unless sooner suspended or revoked
by the commissioner. [1947 c 79 § .19.18; Rem. Supp. 1947
§ 45.19.18.]
48.19.190
48.19.160
48.19.160 Rating organization license. No rating
organization shall do business in this state or make filings
with the commissioner unless then licensed by the commissioner as a rating organization. [1947 c 79 § .19.16; Rem.
Supp. 1947 § 45.19.16.]
48.19.170
48.19.170 Application for license. (1) Any person,
whether domiciled within or outside this state, except as provided in subsection (2) of this section, may make application
to the commissioner for a license as a rating organization for
such kinds of insurance or subdivisions thereof, if for casualty or surety insurances, or for such subdivision, class of
risks or a part or combination thereof, if for other insurances,
as are specified in its application, and shall file therewith:
(a) A copy of its constitution, its articles of agreement or
association, or its certificate of incorporation, or trust agreement, and of its bylaws, rules and regulations governing the
conduct of its business;
(b) A list of its members and a list of its subscribers;
(c) The name and address of a resident of this state upon
whom notices or orders of the commissioner or process
affecting such rating organization may be served, and
(d) A statement of its qualifications as a rating organization.
(2) Any rating organization proposing to act as such as to
insurance under standard form fire policies, shall be licensed
only if all the following conditions are complied with:
(a) The applicant and the operators of such rating organization shall be domiciled in and shall actually reside in this
state.
(b) The ownership of such rating organization shall be
vested in trustees for all its subscribers under such trust
agreement as is approved by the commissioner, and the rating
organization shall be and shall be conducted as a nonprofit
public service institution.
(c) Such rating organization shall not be connected with
any insurer or insurers except to the extent that any such
insurer may be a subscriber to its services. [1947 c 79 §
.19.17; Rem. Supp. 1947 § 45.19.17.]
48.19.180
48.19.180 Issuance of license. (1) If the commissioner
finds that the applicant for a license as a rating organization is
(2004 Ed.)
48.19.190 Suspension or revocation of license. (1)
The commissioner may, after a hearing, suspend or revoke
the license issued to a rating organization for any of the following causes:
(a) If he finds that the licensee no longer meets the qualifications for the license.
(b) For failure to comply with an order of the commissioner within the time limited by the order, or any extension
thereof which the commissioner may grant.
(2) The commissioner shall not so suspend or revoke a
license for failure to comply with an order until the time prescribed by this code for an appeal from such order to the
superior court has expired or if such appeal has been taken,
until such order has been affirmed.
(3) The commissioner may determine when a suspension
or revocation of license shall become effective. A suspension
of license shall remain in effect for the period fixed by him,
unless he modifies or rescinds the suspension, or until the
order, failure to comply with which constituted grounds for
the suspension, is modified, rescinded or reversed. [1947 c
79 § .19.19; Rem. Supp. 1947 § 45.19.19.]
48.19.200
48.19.200 Notice of changes. Every rating organization
shall notify the commissioner promptly of every change in
(1) its constitution, its articles of agreement or association, or its certificate of incorporation, or trust agreement, and
its bylaws, rules and regulations governing the conduct of its
business;
(2) its list of members and subscribers;
(3) the name and address of the resident of this state designated by it upon whom notices or orders of the commissioner or process affecting such rating organization may be
served. [1947 c 79 § .19.20; Rem. Supp. 1947 § 45.19.20.]
48.19.210
48.19.210 Subscribers—Rights, limitations. (1) Subject to rules and regulations which have been approved by the
commissioner as reasonable, each rating organization shall
permit any insurer to subscribe to its rating services for any
kind of insurance or subdivision thereof, for which it is
authorized to act as a rating organization, subject to subsection (2) of RCW 48.19.050.
(2) Notice of proposed changes in such rules and regulations shall be given to each subscriber.
[Title 48 RCW—page 109]
48.19.220
Title 48 RCW: Insurance
(3) An insurer shall not concurrently be a subscriber to
the services of more than one rating organization as to the
same subdivision, class of risk or part or combination of a
kind of insurance.
(4) As to fire insurance under standard form fire policies,
an insurer may not concurrently be a subscriber to the services of more than one rating organization except as provided
in subsection (2) of RCW 48.19.050. [1947 c 79 § .19.21;
Rem. Supp. 1947 § 45.19.21.]
48.19.220
48.19.220 Review of rules and refusal to admit insurers. (1) The reasonableness of any rule or regulation in its
application to subscribers, or the refusal of any rating organization to admit an insurer as a subscriber, shall, at the request
of any subscriber or any such insurer, be reviewed by the
commissioner at a hearing held upon notice to the rating
organization, and to the subscriber or insurer.
(2) If the commissioner finds that such rule or regulation
is unreasonable in its application to subscribers, he shall
order that such rule or regulation shall not be applicable to
subscribers who are not members of the rating organization.
(3) If a rating organization fails to grant or reject an
insurer's application for subscribership within thirty days
after it was made, the insurer may request a review by the
commissioner as if the application had been rejected. If the
commissioner finds that the insurer has been refused admittance to the rating organization as a subscriber without justification, he shall order the rating organization to admit the
insurer as a subscriber. If he finds that the action of the rating
organization was justified, he shall make an order affirming
its action. [1947 c 79 § .19.22; Rem. Supp. 1947 § 45.19.22.]
48.19.230
48.19.230 Subscriber committees. The subscribers of
any rating organization may, from time to time, individually
or through committees representing various subscribers, consult with the rating organization with respect to matters
within this chapter which affect such subscribers. [1947 c 79
§ .19.23; Rem. Supp. 1947 § 45.19.23.]
48.19.240
48.19.240 Rules cannot affect dividends. No rating
organization shall adopt any rule the effect of which would be
to prohibit or regulate the payment of dividends, savings or
unabsorbed premium deposits allowed or returned by insurers to their policyholders, members or subscribers. [1947 c
79 § .19.24; Rem. Supp. 1947 § 45.19.24.]
48.19.250
48.19.250 Cooperative activities. (1) Cooperation
among rating organizations or among rating organizations
and insurers in rate making or in other matters within the
scope of this chapter is hereby authorized, if the filings resulting from such cooperation are subject to all the provisions of
this chapter which are applicable to filings generally.
(2) The commissioner may review such cooperative
activities and practices and if, after a hearing, he finds that
any such activity or practice is unfair or unreasonable or otherwise inconsistent with the provisions of this code, he may
issue a written order specifying in what respect such activity
or practice is so unfair, unreasonable, or inconsistent, and
requiring the discontinuance of such activity or practice.
[1947 c 79 § .19.25; Rem. Supp. 1947 § 45.19.25.]
[Title 48 RCW—page 110]
48.19.260
48.19.260 Technical services. Any rating organization
may subscribe for or purchase actuarial, technical or other
services, and such services shall be available to all subscribers without discrimination. [1947 c 79 § .19.26; Rem. Supp.
1947 § 45.19.26.]
48.19.270
48.19.270 Records—Examinations. Each rating organization shall keep an accurate and complete record of all
work performed by it, and of all its receipts and disbursements. Such rating organization and its records shall be
examined by the commissioner at such times and in such
manner as is provided in chapter 48.03 RCW of this code.
[1947 c 79 § .19.27; Rem. Supp. 1947 § 45.19.27.]
48.19.280
48.19.280 Deviations. (1) Every member or subscriber
to a rating organization shall adhere to the filings made on its
behalf by such organization. Deviations from the organization's filings are permitted only when filed with the commissioner in accordance with this chapter.
(2) Every such deviation shall terminate upon a material
change of the basic rate from which the deviation is made.
The commissioner shall determine whether a change of the
basic rate is so material as to require such termination of
deviations. [1989 c 25 § 8; 1957 c 193 § 14; 1947 c 79 §
.19.28; Rem. Supp. 1947 § 45.19.28.]
Effective date—1989 c 25: See note following RCW 48.18.100.
48.19.290
48.19.290 Appeal from rating organization's action.
(1) Any subscriber to a rating organization may appeal to the
commissioner from the rating organization's action or decision in approving or rejecting any proposed change in or
addition to the rating organization's filings. The commissioner shall, after a hearing on the appeal:
(a) Issue an order approving the rating organization's
action or decision or directing it to give further consideration
to such proposal; or
(b) If the appeal is from the rating organization's action
or decision in rejecting a proposed addition to its filings, he
may, in event he finds that the action or decision was unreasonable, issue an order directing the rating organization to
make an addition to its filings, on behalf of its subscribers, in
a manner consistent with his findings, within a reasonable
time after the issuance of such order.
(2) If such appeal is based upon the rating organization's
failure to make a filing on behalf of such subscriber which is
based on a system of expense provisions which differs, in
accordance with the right granted in subdivision (2) of RCW
48.19.030, from the system of expense provisions included in
a filing made by the rating organization, the commissioner
shall, if he grants the appeal, order the rating organization to
make the requested filing for use by the appellant. In deciding
the appeal the commissioner shall apply the standards set
forth in RCW 48.19.020 and 48.19.030. [1947 c 79 § .19.29;
Rem. Supp. 1947 § 45.19.29.]
48.19.300
48.19.300 Service to insureds. Every rating organization and every insurer which makes its own rates shall, within
a reasonable time after receiving written request therefor and
upon payment of such reasonable charge as it may make, furnish to any insured affected by a rate made by it, or to the
(2004 Ed.)
Rates
authorized representative of such insured, all pertinent information as to such rate. [1947 c 79 § .19.30; Rem. Supp. 1947
§ 45.19.30.]
48.19.310
48.19.310 Complaints of insureds. Every rating organization and every insurer which makes its own rates shall
provide within this state reasonable means whereby any person aggrieved by the application of its rating system may be
heard, in person or by his authorized representative, on his
written request to review the manner in which such rating
system has been applied in connection with the insurance
afforded him. If the rating organization or insurer fails to
grant or reject such request within thirty days after it is made,
the applicant may proceed in the same manner as if his application had been rejected. Any party affected by the action of
such rating organization or such insurer on such request may,
within thirty days after written notice of such action, appeal
to the commissioner, who, after a hearing held upon notice to
the appellant and to the rating organization or insurer, may
affirm or reverse such action. [1947 c 79 § .19.31; Rem.
Supp. 1947 § 45.19.31.]
48.19.320
48.19.320 Advisory organizations—Definition. (1)
Every group, association or other organization of insurers,
whether located within or outside this state, which assists
insurers which make their own filings or rating organizations
in rate making, by the collection and furnishing of loss or
expense statistics, or by the submission of recommendations,
but which does not make filings under this chapter, shall be
known as an advisory organization.
(2) This section does not apply to subscribers' committees provided for in RCW 48.19.230. [1947 c 79 § .19.32;
Rem. Supp. 1947 § 45.19.32.]
48.19.330
48.19.330 Requisites of advisory organization. Every
advisory organization before serving as such to any rating
organization or independently filing insurer doing business in
this state, shall file with the commissioner:
(1) A copy of its constitution, its articles of agreement or
association or its certificate of incorporation and of its
bylaws, rules and regulations governing its activities;
(2) A list of its members;
(3) The name and address of a resident of this state upon
whom notices or orders of the commissioner or process
issued at his direction may be served; and
(4) An agreement that the commissioner may examine
such advisory organization in accordance with the provisions
of RCW 48.03.010. [1947 c 79 § .19.33; Rem. Supp. 1947 §
45.19.33.]
48.19.340
48.19.340 Desist orders. If, after a hearing, the commissioner finds that the furnishing of information or assistance by an advisory organization, as referred to in RCW
48.19.320, involves any act or practice which is unfair or
unreasonable or otherwise inconsistent with the provisions of
this code, he may issue a written order specifying in what
respect such act or practice is unfair or unreasonable or so
otherwise inconsistent, and requiring the discontinuance of
such act or practice. [1947 c 79 § .19.34; Rem. Supp. 1947 §
45.19.34.]
(2004 Ed.)
48.19.370
48.19.350
48.19.350 Disqualification of data. No insurer which
makes its own filing nor any rating organization shall support
its filings by statistics or adopt rate making recommendations, furnished to it by an advisory organization which has
not complied with this chapter or with any order of the commissioner involving such statistics or recommendations
issued under RCW 48.19.340. If the commissioner finds such
insurer or rating organization to be in violation of this section
he may issue an order requiring the discontinuance of the violation. [1947 c 79 § .19.35; Rem. Supp. 1947 § 45.19.35.]
48.19.360
48.19.360 Joint underwriting or joint reinsurance.
(1) Every group, association or other organization of insurers
which engages in joint underwriting or joint reinsurance,
shall be subject to regulation with respect thereto as is provided in this section, subject, however, with respect to joint
underwriting, to all other provisions of this chapter, and, with
respect to joint reinsurance, to RCW 48.19.270, 48.01.080
and 48.19.430; and to chapter 48.03 RCW of this code.
(2) If, after a hearing, the commissioner finds that any
activity or practice of any such group, association or other
organization is unfair or unreasonable or otherwise inconsistent with the provisions of this chapter, he may issue a written
order specifying in what respects such activity or practice is
unfair, or unreasonable or so inconsistent, and requiring the
discontinuance of the activity or practice. [1947 c 79 §
.19.36; Rem. Supp. 1947 § 45.19.36.]
48.19.370
48.19.370 Recording and reporting of loss and
expense experience. (1) The commissioner shall promulgate
reasonable rules and statistical plans, reasonably adapted to
each of the rating systems on file with him, which may be
modified from time to time and which shall be used thereafter
by each insurer in the recording and reporting of its loss and
countrywide expense experience, in order that the experience
of all insurers may be made available at least annually in such
form and detail as may be necessary to aid him in determining whether rating systems comply with the standards set
forth in RCW 48.19.020 and 48.19.030. Such rules and plans
may also provide for the recording and reporting of expense
experience items which are specially applicable to this state
and are not susceptible of determination by a prorating of
countrywide expense experience.
(2) In promulgating such rules and plans, the commissioner shall give due consideration to the rating systems on
file with him and, in order that such rules and plans may be as
uniform as is practicable among the several states, to the rules
and to the form of the plans used for such rating systems in
other states.
(3) No insurer shall be required to record or report its
loss experience on a classification basis that is inconsistent
with the rating system filed by it.
(4) The commissioner may designate one or more rating
organizations or other agencies to assist him in gathering
such experience and making compilations thereof, and such
compilations shall be made available, subject to reasonable
rules promulgated by the commissioner, to insurers and rating organizations.
(5) Reasonable rules and plans may be promulgated by
the commissioner for the interchange of data necessary for
[Title 48 RCW—page 111]
48.19.380
Title 48 RCW: Insurance
the application of rating plans. [1947 c 79 § .19.37; Rem.
Supp. 1947 § 45.19.37.]
48.19.380
48.19.380 Exchange of information. Every rating
organization and insurer may exchange information and
experience data with insurers and rating organizations in this
and other states and may consult with them with respect to
rate making and the application of rating systems. [1947 c 79
§ .19.38; Rem. Supp. 1947 § 45.19.38.]
48.19.390
48.19.390 False or misleading information. No person shall wilfully withhold information from, or knowingly
give false or misleading information to, the commissioner,
any statistical agency designated by the commissioner, any
rating organization, or any insurer, which will affect the rates
or premiums chargeable under this chapter. [1947 c 79 §
.19.39; Rem. Supp. 1947 § 45.19.39.]
48.19.400
48.19.400 Assigned risks. Agreements may be made
among casualty insurers with respect to the equitable apportionment among them of insurance which may be afforded
applicants who are in good faith entitled to but who are
unable to procure such insurance through ordinary methods
and such insurers may agree among themselves on the use of
reasonable rate modifications for such insurance, such agreements and rate modifications to be subject to the approval of
the commissioner. [1947 c 79 § .19.40; Rem. Supp. 1947 §
45.19.40.]
48.19.410
48.19.410 Examination of contracts. (1) The commissioner may permit the organization and operation of examining bureaus for the examination of policies, daily reports,
binders, renewal certificates, endorsements, and other evidences of insurance or of the cancellation thereof, for the purpose of ascertaining that lawful rates are being charged.
(2) A bureau shall examine documents with regard to
such kinds of insurance as the commissioner may, after hearing, reasonably require to be submitted for examination. A
bureau may examine documents as to such other kinds of
insurance as the issuing insurers may voluntarily submit for
examination. Upon request of the commissioner, a bureau
shall also examine affidavits filed pursuant to RCW
48.15.040, surplus lines contracts and related documents, and
shall make recommendations to the commissioner to assist
the commissioner in determining whether surplus lines have
been procured in accordance with chapter 48.15 RCW and
rules issued thereunder.
(3) No bureau shall operate unless licensed by the commissioner as to the kinds of insurance as to which it is permitted so to examine. To qualify for a license a bureau shall:
(a) Be owned in trust for the benefit of all the insurers
regularly using its services, under a trust agreement approved
by the commissioner.
(b) Make its services available without discrimination to
all authorized insurers applying therefor, subject to such reasonable rules and regulations as to the obligations of insurers
using its services, as to the conduct of its affairs, and as to the
correction of errors and omissions in documents examined by
it as are approved by the commissioner.
[Title 48 RCW—page 112]
(c) Have no manager or other employee who is an
employee of an insurer other than to the extent that he is an
employee of the bureau owned by insurers through such trust
agreement.
(d) Pay to the commissioner a fee of ten dollars for issuance of its license.
(4) Such license shall be of indefinite duration and shall
remain in force until revoked by the commissioner or terminated at the request of the bureau. The commissioner may
revoke the license, after hearing,
(a) if the bureau is no longer qualified therefor;
(b) if the bureau fails to comply with a proper order of
the commissioner;
(c) if the bureau violates or knowingly participates in the
violation of any provision of this code.
(5) Any person aggrieved by any rule, regulation, act or
omission of a bureau may appeal to the commissioner therefrom. The commissioner shall hold a hearing upon such
appeal, and shall make such order upon the hearing as he
deems to be proper.
(6) Every such bureau operating in this state shall be subject to the supervision of the commissioner, and the commissioner shall examine it as provided in chapter 48.03 RCW of
this code.
(7) Every examining bureau shall keep adequate records
of the outstanding errors and omissions found in coverages
examined by it and of its receipts and disbursements, and
shall hold as confidential all information contained in documents submitted to it for examination.
(8) The commissioner shall not license an additional
bureau for the examination of documents relative to a kind of
insurance if such documents are being examined by a then
existing licensed bureau. Any examining bureau operating in
this state immediately prior to the effective date of this code
under any law of this state repealed as of such date, shall have
prior right to apply for and secure a license under this section.
[1983 1st ex.s. c 32 § 8; 1947 c 79 § .19.41; Rem. Supp. 1947
§ 45.19.41.]
48.19.420
48.19.420 Rate agreements. Two or more insurers
mutually may agree to adhere to rates, rating plans, rating
systems or underwriting practices or uniform modifications
thereof, all subject to the following conditions:
(1) All of the terms of the agreements shall be in writing
executed on behalf of each such insurer.
(2) An executed copy of every such written agreement
and of every modification thereof shall be filed with the commissioner.
(3) Within a reasonable length of time after every such
filing, the commissioner shall either approve or disapprove
such agreement or modification. No such agreement or modification shall be effective unless and until approved by the
commissioner.
(4) The commissioner shall not approve any such agreement or modification which:
(a) Constitutes or would tend to result in an unreasonable
restraint upon free competition;
(b) contains terms otherwise tending to injure the public
interest.
(2004 Ed.)
Disability Insurance
(5) No cause of action shall lie in favor of any insurer
which is party to any such agreement against any other
insurer party thereto on account of any breach thereof.
(6) All rate filings covered by such agreement shall be
subject to the provisions of this chapter or of other applicable
law.
(7) The commissioner may after a hearing thereon and
for cause withdraw any approval previously given any such
agreement or modification. [1947 c 79 § .19.42; Rem. Supp.
1947 § 45.19.42.]
Chapter 48.20
48.19.480
48.19.480 Automobile insurance—Completion of
accident prevention course, certificate. Upon successfully
completing the approved course, each participant shall be
issued by the course's sponsoring agency, a certificate that
shall be the basis of qualification for the discount on insurance. [1986 c 235 § 3.]
48.19.490
48.19.490 Automobile insurance—Continued eligibility for discount. Each participant shall take an approved
course every two years to continue to be eligible for the discount on insurance. [1986 c 235 § 4.]
48.19.430
48.19.430 Penalties. Any person violating any provision of this chapter shall be subject to a penalty of not more
than fifty dollars for each such violation, but if such violation
is found to be wilful a penalty of not more than five hundred
dollars for each such violation may be imposed. Such penalties may be in addition to any other penalty provided by law.
[1947 c 79 § .19.43; Rem. Supp. 1947 § 45.19.43.]
48.19.450
48.19.450 Casualty rate filing—Credit. The commissioner shall, in reviewing a casualty rate filing, determine in
accordance with sound and reliable actuarial principles
whether chapter 305, Laws of 1986 requires an insurer to
grant its policyholders a credit in such casualty rate filing.
Upon determining that data in support of such a credit is actuarially credible, the commissioner shall approve or disapprove such casualty rate filing in accordance therewith. The
commissioner shall not approve any casualty rate that is inadequate, excessive, or unfairly discriminatory. [1986 c 305 §
907.]
Preamble—Report to legislature—Applicability—Severability—
1986 c 305: See notes following RCW 4.16.160.
48.19.460
48.19.460 Automobile insurance—Premium reductions for older insureds completing accident prevention
course. Any schedule of rates or rating plan for automobile
liability and physical damage insurance submitted to or filed
with the commissioner shall provide for an appropriate
reduction in premium charges except for underinsured motorist coverage for those insureds who are fifty-five years of age
and older, for a two-year period after successfully completing
a motor vehicle accident prevention course meeting the criteria of the department of licensing with a minimum of eight
hours, or additional hours as determined by rule of the department of licensing. An eight-hour program-learning selfinstruction course shall be made available in areas in which a
classroom course meeting the criteria of this section is not
offered. The classroom course may be conducted by a public
or private agency approved by the department. The selfinstruction course shall be conducted by an agency approved
by the department to conduct classroom courses under this
section. [1987 c 377 § 1; 1986 c 235 § 1.]
48.19.500
48.19.500 Motor vehicle insurance—Seat belts, etc.
Due consideration in making rates for motor vehicle insurance shall be given to any anticipated change in losses that
may be attributable to the use of seat belts, child restraints,
and other lifesaving devices. An exhibit detailing these
changes and any credits or discounts resulting from any such
changes shall be included in each filing pertaining to private
passenger automobile (or motor vehicle) insurance. [1989 c
11 § 20; 1987 c 310 § 1.]
Severability—1989 c 11: See note following RCW 9A.56.220.
48.19.501
48.19.501 Motor vehicle insurance—Anti-theft
devices—Lights—Multiple vehicles. Due consideration in
making rates for motor vehicle insurance shall be given to:
(1) Any anticipated change in losses that may be attributable to the use of properly installed and maintained anti-theft
devices in the insured private passenger automobile. An
exhibit detailing these losses and any credits or discounts
resulting from any such changes shall be included in each filing pertaining to private passenger automobile (or motor
vehicle) insurance.
(2) Any anticipated change in losses that may be attributable to the use of lights and lighting devices that have been
proven effective in increasing the visibility of motor vehicles
during daytime or in poor visibility conditions and to the use
of rear stop lights that have been proven effective in reducing
rear-end collisions. An exhibit detailing these losses and any
credits or discounts resulting from any such changes shall be
included in each filing pertaining to private passenger automobile (or motor vehicle) insurance.
(3) Any anticipated change in losses per vehicle covered
that may be attributable to the fact that the insured has more
vehicles covered under the policy than there are insured drivers in the same household. An exhibit detailing these changes
and any credits or discounts resulting from any such changes
shall be included in each filing pertaining to private passenger automobile (or motor vehicle) insurance. [1989 c 11 §
21; 1987 c 320 § 1.]
Severability—1989 c 11: See note following RCW 9A.56.220.
Effective date—1987 c 320: "This act shall take effect on January 1,
1988." [1987 c 320 § 2.]
48.19.470
48.19.470 Automobile insurance—Premium reductions for persons eligible under RCW 48.19.460. All insurance companies writing automobile liability and physical
damage insurance in this state shall allow an appropriate
reduction in premium charges except for underinsured motorist coverage to all eligible persons subject to RCW 48.19.460.
[1986 c 235 § 2.]
(2004 Ed.)
Chapter 48.20
Chapter 48.20 RCW
DISABILITY INSURANCE
Sections
48.20.002
48.20.012
Scope of chapter.
Format of disability policies.
[Title 48 RCW—page 113]
48.20.002
48.20.013
48.20.015
48.20.022
48.20.025
48.20.028
48.20.032
48.20.042
48.20.050
48.20.052
48.20.062
48.20.072
48.20.082
48.20.092
48.20.102
48.20.112
48.20.122
48.20.132
48.20.142
48.20.152
48.20.162
48.20.172
48.20.192
48.20.202
48.20.212
48.20.222
48.20.232
48.20.242
48.20.252
48.20.262
48.20.282
48.20.292
48.20.302
48.20.312
48.20.322
48.20.340
48.20.350
48.20.360
48.20.380
48.20.385
48.20.390
48.20.391
48.20.393
48.20.395
48.20.397
48.20.410
48.20.411
48.20.412
48.20.414
48.20.416
48.20.418
48.20.420
48.20.430
48.20.450
48.20.460
48.20.470
48.20.480
48.20.490
48.20.500
48.20.510
48.20.520
48.20.525
48.20.530
Title 48 RCW: Insurance
Return of policy and refund of premium—Notice required—
Effect of return.
Endorsements.
Policies issued by domestic insurer for delivery in another
state.
Schedule of rates for individual health benefit plans—Loss
ratio—Remittance of premiums—Definitions.
Calculation of premiums—Adjusted community rating
method—Definitions.
Standard provisions required—Substitutions—Captions.
Standard provision No. 1—Entire contract; changes.
Standard provision No. 2—Misstatement of age or sex.
Standard provision No. 3—Time limit on certain defenses.
Standard provision No. 4—Grace period.
Standard provision No. 5—Reinstatement.
Standard provision No. 6—Notice of claim.
Standard provision No. 7—Claim forms.
Standard provision No. 8—Proofs of loss.
Standard provision No. 9—Time of payment of claims.
Standard provision No. 10—Payment of claims.
Standard provision No. 11—Physical examination and
autopsy.
Standard provision No. 12—Legal actions.
Standard provision No. 13—Change of beneficiary.
Optional standard provisions.
Optional standard provision No. 14—Change of occupation.
Optional standard provision No. 15—Other insurance in this
insurer.
Optional standard provision No. 16—Insurance with other
insurers (Provision of service or expense incurred basis).
Optional standard provision No. 17—Insurance with other
insurers.
Optional standard provision No. 18—Relation of earnings to
insurance.
Optional standard provision No. 19—Unpaid premium.
Optional standard provision No. 20—Cancellation.
Optional standard provision No. 21—Conformity with state
statutes.
Optional standard provision No. 22—Illegal occupation.
Order of certain policy provisions.
Third party ownership.
Requirements of other jurisdictions.
Age limit.
Effective date of standard provision and certain other sections—Five year period.
"Family expense disability insurance" defined.
"Franchise plan" defined.
Extended disability benefit.
Incontestability after reinstatement.
When injury caused by intoxication or use of narcotics.
Chiropody.
Diabetes coverage.
Mammograms—Insurance coverage.
Reconstructive breast surgery.
Mastectomy, lumpectomy.
Optometry.
Registered nurses or advanced registered nurses.
Chiropractic.
Psychological services.
Dentistry.
Denturist services.
Dependent child coverage—Continuation for incapacity.
Dependent child coverage—From moment of birth—Congenital anomalies—Notification of birth.
Standardization and simplification of terms and coverages—
Disclosure requirements.
Standardization and simplification—Minimum standards for
benefits and coverages.
Standardization and simplification—Outline of coverage—
Format and contents.
Standardization and simplification—Simplified application
form—Coverage of loss from preexisting health condition.
Continuation of coverage by former spouse and dependents.
Coverage for adopted children.
Cancellation of rider.
Phenylketonuria.
Prescriptions—Preapproval of individual claims—Subsequent
rejection prohibited—Written record required.
Nonresident pharmacies.
Approval of policy forms: RCW 48.18.100.
Assignment of policies: RCW 48.18.360.
Exemption of proceeds: RCW 48.18.400.
[Title 48 RCW—page 114]
General provisions regarding filing, approval, contents of policies, execution, applications, etc.: Chapter 48.18 RCW.
Grounds for disapproval of policy forms: RCW 48.18.110.
Insurable interest, personal insurance, nonprofit organizations: RCW
48.18.030.
Minimum standard conditions and terminology for disability policies, established by commissioner: RCW 48.18.120(2).
Minor contracting for life or disability insurance: RCW 48.18.020.
Payment to person designated in policy or by assignment discharges
insurer: RCW 48.18.370.
Rates, manuals, classifications—Filing: RCW 48.19.010(2).
Refusal to renew or cancellation of disability insurance: RCW 48.18.298,
48.18.299.
48.20.002
48.20.002 Scope of chapter. Nothing in this chapter
shall apply to or affect (1) any policy of workers' compensation insurance or any policy of liability insurance with or
without supplementary expense coverage therein; or (2) any
policy or contract of reinsurance; or (3) any blanket or group
policy of insurance; or (4) life insurance, endowment or
annuity contracts, or contracts supplemental thereto which
contain only such provisions relating to accident and sickness
insurance as (a) provide additional benefits in case of death or
dismemberment or loss of sight by accident, or as (b) operate
to safeguard such contracts against lapse, or to give a special
surrender value or special benefit or an annuity in the event
that the insured or annuitant shall become totally and permanently disabled, as defined by the contract or supplemental
contract. [1987 c 185 § 25; 1951 c 229 § 1.]
Reviser's note: For prior laws governing standard provision requirements for individual accident or health insurance policies see 1947 c 79 §§
.20.01 through .20.33 and .20.37 and Rem. Supp. 1947 §§ 45.20.01 through
45.20.33 and 45.20.37.
Many of the sections enacted in 1951 c 229 are in substance amendatory of sections previously appearing in chapter 48.20 RCW, although they
appear in 1951 c 229 as new sections. To assist those using the code, the
prior enactment on the same subject is shown in the history note following
the new section wherever practical.
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
48.20.012
48.20.012 Format of disability policies. No disability
policy shall be delivered or issued for delivery to any person
in this state unless it otherwise complies with this code, and
complies with the following:
(1) It shall purport to insure only one person, except as to
family expense insurance written pursuant to RCW
48.20.340.
(2) The style, arrangement and over-all appearance of
the policy shall give no undue prominence to any portion of
the text, and every printed portion of the text of the policy and
of any endorsements or attached papers shall be plainly
printed in light-faced type of a style in general use, the size of
which shall be uniform and not less than ten-point with a
lower-case unspaced alphabet length not less than one hundred and twenty-point (the "text" shall include all printed
matter except the name and address of the insurer, name or
title of the policy, the brief description if any, and caption and
subcaptions).
(3) The exceptions and reductions of indemnity shall be
set forth in the policy and, other than those contained in RCW
48.20.042 to *48.20.272, inclusive, shall be printed, at the
insurer's option, either included with the benefit provision to
(2004 Ed.)
Disability Insurance
which they apply, or under an appropriate caption such as
"Exceptions," or "Exceptions and reductions," except that if
an exception or reduction specifically applies only to a particular benefit of the policy, a statement of such exception or
reduction shall be included with the benefit provision to
which it applies.
(4) Each such form, including riders and endorsements,
shall be identified by a form number in the lower left hand
corner of the first page thereof.
(5) It shall contain no provision purporting to make any
portion of the insurer's charter, rules, constitution, or bylaws
a part of the policy unless such portion is set forth in full in
the policy, except in the case of the incorporation of, or reference to, a statement of rates or classification of risks, or shortrate table filed with the commissioner. [1951 c 229 § 2; 1947
c 79 § .20.02; formerly Rem. Supp. 1949 § 45.20.02.]
*Reviser's note: RCW 48.20.272 was repealed by 2004 c 112 § 6.
48.20.013
48.20.013 Return of policy and refund of premium—
Notice required—Effect of return. Every individual disability insurance policy issued after January 1, 1968, except
single premium nonrenewable policies, shall have printed on
its face or attached thereto a notice stating in substance that
the person to whom the policy is issued shall be permitted to
return the policy within ten days of its delivery to the purchaser and to have the premium paid refunded if, after examination of the policy, the purchaser is not satisfied with it for
any reason. An additional ten percent penalty shall be added
to any premium refund due which is not paid within thirty
days of return of the policy to the insurer or agent. If a policy
holder or purchaser pursuant to such notice, returns the policy
to the insurer at its home or branch office or to the agent
through whom it was purchased, it shall be void from the
beginning and the parties shall be in the same position as if no
policy had been issued. [1983 1st ex.s. c 32 § 9; 1967 c 150
§ 26.]
48.20.015
48.20.015 Endorsements. If a contract is issued on any
basis other than as applied for, an endorsement setting forth
such modification(s) must accompany and be attached to the
policy; and no endorsement shall be effective unless signed
by the policyowner, and a signed copy thereof returned to the
insurer. [1975 1st ex.s. c 266 § 9.]
Severability—1975 1st ex.s. c 266: See note following RCW
48.01.010.
48.20.022
48.20.022 Policies issued by domestic insurer for
delivery in another state. If any policy is issued by a
domestic insurer for delivery to a person residing in another
state, and if the insurance commissioner or corresponding
public official of such other state has advised the commissioner that any such policy is not subject to approval or disapproval by such official, the commissioner may by ruling
require that such policy meet the applicable standards set
forth in this chapter and in chapter 48.18 RCW. [1951 c 229
§ 3.]
48.20.025
48.20.025 Schedule of rates for individual health benefit plans—Loss ratio—Remittance of premiums—Defi(2004 Ed.)
48.20.025
nitions. (1) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a) "Claims" means the cost to the insurer of health care
services, as defined in RCW 48.43.005, provided to a policyholder or paid to or on behalf of the policyholder in accordance with the terms of a health benefit plan, as defined in
RCW 48.43.005. This includes capitation payments or other
similar payments made to providers for the purpose of paying
for health care services for a policyholder.
(b) "Claims reserves" means: (i) The liability for claims
which have been reported but not paid; (ii) the liability for
claims which have not been reported but which may reasonably be expected; (iii) active life reserves; and (iv) additional
claims reserves whether for a specific liability purpose or not.
(c) "Earned premiums" means premiums, as defined in
RCW 48.43.005, plus any rate credits or recoupments less
any refunds, for the applicable period, whether received
before, during, or after the applicable period.
(d) "Incurred claims expense" means claims paid during
the applicable period plus any increase, or less any decrease,
in the claims reserves.
(e) "Loss ratio" means incurred claims expense as a percentage of earned premiums.
(f) "Reserves" means: (i) Active life reserves; and (ii)
additional reserves whether for a specific liability purpose or
not.
(2) An insurer shall file, for informational purposes only,
a notice of its schedule of rates for its individual health benefit plans with the commissioner prior to use.
(3) An insurer shall file with the notice required under
subsection (2) of this section supporting documentation of its
method of determining the rates charged. The commissioner
may request only the following supporting documentation:
(a) A description of the insurer's rate-making methodology;
(b) An actuarially determined estimate of incurred
claims which includes the experience data, assumptions, and
justifications of the insurer's projection;
(c) The percentage of premium attributable in aggregate
for nonclaims expenses used to determine the adjusted community rates charged; and
(d) A certification by a member of the American academy of actuaries, or other person approved by the commissioner, that the adjusted community rate charged can be reasonably expected to result in a loss ratio that meets or exceeds
the loss ratio standard established in subsection (7) of this
section.
(4) The commissioner may not disapprove or otherwise
impede the implementation of the filed rates.
(5) By the last day of May each year any insurer issuing
or renewing individual health benefit plans in this state during the preceding calendar year shall file for review by the
commissioner supporting documentation of its actual loss
ratio for its individual health benefit plans offered or renewed
in the state in aggregate for the preceding calendar year. The
filing shall include aggregate earned premiums, aggregate
incurred claims, and a certification by a member of the American academy of actuaries, or other person approved by the
commissioner, that the actual loss ratio has been calculated in
accordance with accepted actuarial principles.
[Title 48 RCW—page 115]
48.20.028
Title 48 RCW: Insurance
(a) At the expiration of a thirty-day period beginning
with the date the filing is received by the commissioner, the
filing shall be deemed approved unless prior thereto the commissioner contests the calculation of the actual loss ratio.
(b) If the commissioner contests the calculation of the
actual loss ratio, the commissioner shall state in writing the
grounds for contesting the calculation to the insurer.
(c) Any dispute regarding the calculation of the actual
loss ratio shall, upon written demand of either the commissioner or the insurer, be submitted to hearing under chapters
48.04 and 34.05 RCW.
(6) If the actual loss ratio for the preceding calendar year
is less than the loss ratio established in subsection (7) of this
section, a remittance is due and the following shall apply:
(a) The insurer shall calculate a percentage of premium
to be remitted to the Washington state health insurance pool
by subtracting the actual loss ratio for the preceding year
from the loss ratio established in subsection (7) of this section.
(b) The remittance to the Washington state health insurance pool is the percentage calculated in (a) of this subsection, multiplied by the premium earned from each enrollee in
the previous calendar year. Interest shall be added to the
remittance due at a five percent annual rate calculated from
the end of the calendar year for which the remittance is due to
the date the remittance is made.
(c) All remittances shall be aggregated and such amounts
shall be remitted to the Washington state high risk pool to be
used as directed by the pool board of directors.
(d) Any remittance required to be issued under this section shall be issued within thirty days after the actual loss
ratio is deemed approved under subsection (5)(a) of this section or the determination by an administrative law judge
under subsection (5)(c) of this section.
(7) The loss ratio applicable to this section shall be seventy-four percent minus the premium tax rate applicable to
the insurer's individual health benefit plans under RCW
48.14.020. [2003 c 248 § 8; 2001 c 196 § 1; 2000 c 79 § 3.]
Effective date—2001 c 196: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[May 7, 2001]." [2001 c 196 § 14.]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
48.20.028
48.20.028 Calculation of premiums—Adjusted community rating method—Definitions. (1) Premiums for
health benefit plans for individuals shall be calculated using
the adjusted community rating method that spreads financial
risk across the carrier's entire individual product population.
All such rates shall conform to the following:
(a) The insurer shall develop its rates based on an
adjusted community rate and may only vary the adjusted
community rate for:
(i) Geographic area;
(ii) Family size;
(iii) Age;
(iv) Tenure discounts; and
(v) Wellness activities.
(b) The adjustment for age in (a)(iii) of this subsection
may not use age brackets smaller than five-year increments
[Title 48 RCW—page 116]
which shall begin with age twenty and end with age sixtyfive. Individuals under the age of twenty shall be treated as
those age twenty.
(c) The insurer shall be permitted to develop separate
rates for individuals age sixty-five or older for coverage for
which medicare is the primary payer and coverage for which
medicare is not the primary payer. Both rates shall be subject
to the requirements of this subsection.
(d) The permitted rates for any age group shall be no
more than four hundred twenty-five percent of the lowest rate
for all age groups on January 1, 1996, four hundred percent
on January 1, 1997, and three hundred seventy-five percent
on January 1, 2000, and thereafter.
(e) A discount for wellness activities shall be permitted
to reflect actuarially justified differences in utilization or cost
attributed to such programs not to exceed twenty percent.
(f) The rate charged for a health benefit plan offered
under this section may not be adjusted more frequently than
annually except that the premium may be changed to reflect:
(i) Changes to the family composition;
(ii) Changes to the health benefit plan requested by the
individual; or
(iii) Changes in government requirements affecting the
health benefit plan.
(g) For the purposes of this section, a health benefit plan
that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not
contain such a provision, provided that the restrictions of
benefits to network providers result in substantial differences
in claims costs. This subsection does not restrict or enhance
the portability of benefits as provided in RCW 48.43.015.
(h) A tenure discount for continuous enrollment in the
health plan of two years or more may be offered, not to
exceed ten percent.
(2) Adjusted community rates established under this section shall pool the medical experience of all individuals purchasing coverage, and shall not be required to be pooled with
the medical experience of health benefit plans offered to
small employers under RCW 48.21.045.
(3) As used in this section, "health benefit plan,"
"adjusted community rate," and "wellness activities" mean
the same as defined in RCW 48.43.005. [2000 c 79 § 4; 1997
c 231 § 207; 1995 c 265 § 13.]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
Short title—Part headings and captions not law—Severability—
Effective dates—1997 c 231: See notes following RCW 48.43.005.
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
48.20.032
48.20.032 Standard provisions required—Substitutions—Captions. Except as provided in RCW 48.18.130,
each such policy delivered or issued for delivery to any person in this state shall contain the provisions as specified in
RCW 48.20.042 to 48.20.152, inclusive, in the words in
which the same appear; except, that the insurer may, at its
option, substitute for one or more of such provisions corresponding provisions of different wording approved by the
commissioner which are in each instance not less favorable in
any respect to the insured or the beneficiary. Each such provision shall be preceded by the applicable caption shown or,
(2004 Ed.)
Disability Insurance
at the insurer's option, by such appropriate individual or
group caption or subcaption as the commissioner may
approve. [1951 c 229 § 4; 1947 c 79 § .20.03; formerly Rem.
Supp. 1947 § 45.20.03.]
48.20.042
48.20.042 Standard provision No. 1—Entire contract; changes. There shall be a provision as follows:
ENTIRE CONTRACTS; CHANGES: This policy,
including the endorsements and attached papers, if any, constitutes the entire contract of insurance. No change in this
policy shall be valid until approved by an executive officer of
the insurer and unless such approval be endorsed hereon or
attached hereto. No agent has authority to change this policy
or to waive any of its provisions. [1951 c 229 § 5. Prior law:
(i) 1947 c 79 § .20.05; Rem. Supp. 1947 § 45.20.05. (ii) 1947
c 79 § .20.06; Rem. Supp. 1947 § 45.20.06.]
48.20.072
"(b) No claim for loss incurred or disability (as defined
in the policy) commencing after two years from the date of
issue of this policy shall be reduced or denied on the ground
that a disease or physical condition not excluded from coverage by name or specific description effective on the date of
loss had existed prior to the effective date of coverage of this
policy."
(More stringent provisions may be required by the commissioner in connection with individual disability policies
sold without any application or with minimal applications.)
[1983 1st ex.s. c 32 § 17; 1975 1st ex.s. c 266 § 12; 1973 1st
ex.s. c 152 § 4; 1969 ex.s. c 241 § 12; 1951 c 229 § 6.]
Severability—1975 1st ex.s. c 266: See note following RCW
48.01.010.
Severability—1973 1st ex.s. c 152: See note following RCW
48.05.140.
48.20.062
48.20.050
48.20.050 Standard provision No. 2—Misstatement
of age or sex. There shall be a provision as follows:
"MISSTATEMENT OF AGE OR SEX: If the age or sex
of the insured has been misstated, all amounts payable under
this policy shall be such as the premium paid would have purchased at the correct age or sex."
The amount of any underpayments which may have been
made on account of any such misstatement under a disability
income policy shall be paid the insured along with the current
payment and the amount of any overpayment may be charged
against the current or succeeding payments to be made by the
insurer. Interest may be applied to such underpayments or
overpayments as specified in the insurance policy form but
not exceeding six percent per annum. [1983 1st ex.s. c 32 §
16.]
48.20.052
48.20.052 Standard provision No. 3—Time limit on
certain defenses. There shall be a provision as follows:
"TIME LIMIT ON CERTAIN DEFENSES: (a) After
two years from the date of issue of this policy no misstatements except fraudulent misstatements, made by the applicant in the application for such policy shall be used to void
the policy or to deny a claim for loss incurred or disability (as
defined in the policy) commencing after the expiration of
such two year period."
(The foregoing policy provision shall not be so construed
as to affect any legal requirement for avoidance of a policy or
denial of a claim during such initial two year period, nor to
limit the application of RCW 48.20.050, 48.20.172,
48.20.192, 48.20.202, and 48.20.212 in the event of misstatement with respect to age or occupation or other insurance.)
(A policy which the insured has the right to continue in
force subject to its terms by the timely payment of premium
(1) until at least age 50 or, (2) in the case of a policy issued
after age 44, for at least five years from its date of issue, may
contain in lieu of the foregoing the following provision (from
which the clause in parentheses may be omitted at the
insurer's option) under the caption "INCONTESTABLE":
"After this policy has been in force for a period of two
years during the lifetime of the insured (excluding any period
during which the insured is disabled), it shall become incontestable as to the statements contained in the application.")
(2004 Ed.)
48.20.062 Standard provision No. 4—Grace period.
There shall be a provision as follows:
GRACE PERIOD: A grace period of . . . . (insert a number not less than "7" for weekly premium policies, "10" for
monthly premium policies, and "31" for all other policies)
days will be granted for the payment of each premium falling
due after the first premium, during which grace period the
policy shall continue in force.
(A policy which contains a cancellation provision may
add, at the end of the above provision: "subject to the right of
the insurer to cancel in accordance with the cancellation provision hereof."
A policy in which the insurer reserves the right to refuse
any renewal shall have, at the beginning of the above provision: "Unless not less than five days prior to the premium
due date the insurer has delivered to the insured or has mailed
to his last address as shown by the records of the insurer written notice of its intention not to renew this policy beyond the
period for which the premium has been accepted.") [1951 c
229 § 7.]
48.20.072
48.20.072 Standard provision No. 5—Reinstatement.
There shall be a provision as follows:
REINSTATEMENT: If any renewal premium be not
paid within the time granted the insured for payment, a subsequent acceptance of premium by the insurer or by any agent
duly authorized by the insurer to accept such premium, without requiring in connection therewith an application for reinstatement, shall reinstate the policy: PROVIDED, HOWEVER, That if the insurer or such agent requires an application for reinstatement and issues a conditional receipt for the
premium tendered, the policy will be reinstated upon
approval of such application by the insurer or, lacking such
approval, upon the forty-fifth day following the date of such
conditional receipt unless the insurer has previously notified
the insured in writing of its disapproval of such application.
The reinstated policy shall cover only loss resulting from
such accidental injury as may be sustained after the date of
reinstatement and loss due to such sickness as may begin
more than ten days after such date. In all other respects the
insured and insurer shall have the same rights thereunder as
they had under the policy immediately before the due date of
the defaulted premium, subject to any provisions endorsed
hereon or attached hereto in connection with the reinstate[Title 48 RCW—page 117]
48.20.082
Title 48 RCW: Insurance
ment. Any premium accepted in connection with a reinstatement shall be applied to a period for which premium has not
been previously paid, but not to any period more than sixty
days prior to the date of reinstatement.
(The last sentence of the above provision may be omitted
from any policy which the insured has the right to continue in
force subject to its terms by the timely payment of premiums
(1) until at least age 50 or, (2) in the case of a policy issued
after age 44, for at least five years from its date of issue.)
[1951 c 229 § 8; 1947 c 79 § .20.07; formerly Rem. Supp.
1947 § 45.20.07.]
48.20.082
48.20.082 Standard provision No. 6—Notice of claim.
There shall be a provision as follows:
NOTICE OF CLAIM: Written notice of claim must be
given to the insurer within twenty days after the occurrence
or commencement of any loss covered by the policy, or as
soon thereafter as is reasonably possible. Notice given by or
on behalf of the insured or the beneficiary to the insurer at
. . . . . . . . . (insert the location of such office as the insurer
may designate for the purpose), or to any authorized agent of
the insurer, with information sufficient to identify the
insured, shall be deemed notice to the insurer.
(In a policy providing a loss-of-time benefit which may
be payable for at least two years, an insurer may at its option
insert the following between the first and second sentences of
the above provision:
"Subject to the qualifications set forth below, if the
insured suffers loss of time on account of disability for which
indemnity may be payable for at least two years, he shall at
least once in every six months after having given notice of
claim, give to the insurer notice of continuance of said disability, except in the event of legal incapacity. The period of
six months following any filing of proof by the insured or any
payment by the insurer on account of such claim or any
denial of liability in whole or in part by the insurer shall be
excluded in applying this provision. Delay in the giving of
such notice shall not impair the insured's right to any indemnity which would otherwise have accrued during the period
of six months preceding the date on which such notice is
actually given.") [1951 c 229 § 9. Prior law: 1947 c 79 §
.20.08; Rem. Supp. 1947 § 45.20.08.]
48.20.092
48.20.092 Standard provision No. 7—Claim forms.
There shall be a provision as follows:
CLAIM FORMS: The insurer, upon receipt of a notice
of claim, will furnish to the claimant such forms as are usually furnished by it for filing proofs of loss. If such forms are
not furnished within fifteen days after the giving of such
notice the claimant shall be deemed to have complied with
the requirements of this policy as to proof of loss upon submitting, within the time fixed in the policy for filing proofs of
loss written proof covering the occurrence, the character and
the extent of the loss for which claim is made. [1951 c 229 §
10; 1947 c 79 § .20.10; formerly Rem. Supp. 1947 §
45.20.10.]
Furnishing claim forms does not constitute waiver of any defense by insurer:
RCW 48.18.470.
Insurer has no responsibility as to completion of claim forms: RCW
48.18.460.
[Title 48 RCW—page 118]
48.20.102 Standard provision No. 8—Proofs of loss.
There shall be a provision as follows:
PROOFS OF LOSS: Written proof of loss must be furnished to the insurer at its said office in case of claim for loss
for which this policy provides any periodic payment contingent upon continuing loss within ninety days after the termination of the period for which the insurer is liable and in case
of claim for any other loss within ninety days after the date of
such loss. Failure to furnish such proof within the time
required shall not invalidate nor reduce any claim if it was not
reasonably possible to give proof within such time, provided
such proof is furnished as soon as reasonably possible and in
no event, except in the absence of legal capacity, later than
one year from the time proof is otherwise required. [1951 c
229 § 11. Prior: (i) 1947 c 79 § .20.11; Rem. Supp. 1947 §
45.20.11. (ii) 1947 c 79 § .20.09, part; Rem. Supp. 1947 §
45.20.09, part.]
48.20.102
48.20.112
48.20.112 Standard provision No. 9—Time of payment of claims. There shall be a provision as follows:
TIME OF PAYMENT OF CLAIMS: Indemnities payable under this policy for any loss other than loss for which
this policy provides any periodic payment will be paid immediately upon receipt of due written proof of such loss. Subject
to due written proof of loss, all accrued indemnities for loss
for which this policy provides periodic payment will be paid
. . . . . . (insert period for payment which must not be less frequently than monthly) and any balance remaining unpaid
upon the termination of liability will be paid immediately
upon receipt of due written proof. [1951 c 229 § 12. Prior: (i)
1947 c 79 § .20.13; Rem. Supp. 1947 § 45.20.13. (ii) 1947 c
79 § .20.14; Rem. Supp. 1947 § 45.20.14.]
48.20.122 Standard provision No. 10—Payment of
claims. (1) There shall be a provision as follows:
PAYMENT OF CLAIMS: Indemnity for loss of life will
be payable in accordance with the beneficiary designation
and the provisions respecting such payment which may be
prescribed herein and effective at the time of payment. If no
such designation or provision is then effective, such indemnity shall be payable to the estate of the insured. Any other
accrued indemnities unpaid at the insured's death may, at the
option of the insurer, be paid either to such beneficiary or to
such estate. All other indemnities will be payable to the
insured.
(2) The following provisions, or either of them, may be
included with the foregoing provision at the option of the
insurer:
"If any indemnity of this policy shall be payable to the
estate of the insured, or to an insured or beneficiary who is a
minor or otherwise not competent to give a valid release, the
insurer may pay such indemnity, up to an amount not exceeding $. . . . . . (insert an amount which shall not exceed $1000),
to any relative by blood or connection by marriage of the
insured or beneficiary who is deemed by the insurer to be
equitably entitled thereto. Any payment made by the insurer
in good faith pursuant to this provision shall fully discharge
the insurer to the extent of such payment."
"Subject to any written direction of the insured in the
application or otherwise all or a portion of any indemnities
provided by this policy on account of hospital, nursing, med48.20.122
(2004 Ed.)
Disability Insurance
ical, or surgical services may, at the insurer's option and
unless the insured requests otherwise in writing not later than
the time of filing proofs of such loss, be paid directly to the
hospital or person rendering such services; but it is not
required that the service be rendered by a particular hospital
or person." [1951 c 229 § 13. Prior: 1947 c 79 § .20.15; Rem.
Supp. 1947 § 45.20.15.]
Proceeds of disability policy are exempt from creditors: RCW 48.18.400.
48.20.132
48.20.132 Standard provision No. 11—Physical
examination and autopsy. There shall be a provision as follows:
PHYSICAL EXAMINATIONS AND AUTOPSY: The
insurer at its own expense shall have the right and opportunity to examine the person of the insured when and as often
as it may reasonably require during the pendency of a claim
hereunder and to make an autopsy in case of death where it is
not forbidden by law. [1951 c 229 § 14. Prior: 1947 c 79 §
.20.12; Rem. Supp. 1947 § 45.20.12.]
48.20.142
48.20.142 Standard provision No. 12—Legal actions.
There shall be a provision as follows:
LEGAL ACTIONS: No action at law or in equity shall
be brought to recover on this policy prior to the expiration of
sixty days after written proof of loss has been furnished in
accordance with the requirements of this policy. No such
action shall be brought after the expiration of three years after
the time written proof of loss is required to be furnished.
[1951 c 229 § 15. Prior: 1947 c 79 § .20.18; Rem. Supp. 1947
§ 45.20.18.]
48.20.202
*Reviser's note: RCW 48.20.272 was repealed by 2004 c 112 § 6.
48.20.172 Optional standard provision No. 14—
Change of occupation. There may be a provision as follows:
CHANGE OF OCCUPATION: If the insured be injured
or contract sickness after having changed his occupation to
one classified by the insurer as more hazardous than that
stated in this policy or while doing for compensation anything pertaining to an occupation so classified, the insurer
will pay only such portion of the indemnities provided in this
policy as the premium paid would have purchased at the rates
and within the limits fixed by the insurer for such more hazardous occupation. If the insured changes his occupation to
one classified by the insurer as less hazardous than that stated
in this policy, the insurer, upon receipt of proof of such
change of occupation, will reduce the premium rate accordingly, and will return the excess pro rata unearned premium
from the date of change of occupation or from the policy
anniversary date immediately preceding receipt of such
proof, whichever is the more recent. In applying this provision, the classification of occupational risk and the premium
rates shall be such as have been last filed by the insurer prior
to the occurrence of the loss for which the insurer is liable or
prior to date of proof of change in occupation with the state
official having supervision of insurance in the state where the
insured resided at the time this policy was issued; but if such
filing was not required, then the classification of occupational
risk and the premium rates shall be those last made effective
by the insurer in such state prior to the occurrence of the loss
or prior to the date of proof of change in occupation. [1951 c
229 § 18.]
48.20.172
48.20.152
48.20.152 Standard provision No. 13—Change of
beneficiary. There shall be a provision as follows:
CHANGE OF BENEFICIARY: Unless the insured
makes an irrevocable designation of beneficiary, the right to
change of beneficiary is reserved to the insured and the consent of the beneficiary or beneficiaries shall not be requisite
to surrender or assignment of this policy or to any change of
beneficiary or beneficiaries, or to any other changes in this
policy.
(The first clause of this provision, relating to the irrevocable designation of beneficiary, may be omitted at the
insurer's option.) [1951 c 229 § 16. Prior: 1947 c 79 § .20.17;
Rem. Supp. 1947 § 45.20.17.]
48.20.162
48.20.162 Optional standard provisions. Except as
provided in RCW 48.18.130, no such policy delivered or
issued for delivery to any person in this state shall contain
provisions respecting the matters set forth in RCW 48.20.172
to *48.20.272, inclusive, unless such provisions are in the
words in which the same appear in the applicable section;
except, that the insurer may, at its option, use in lieu of any
such provision a corresponding provision of different wording approved by the commissioner which is not less favorable
in any respect to the insured or the beneficiary. Any such provision contained in the policy shall be preceded individually
by the appropriate caption or, at the insurer's option, by such
appropriate individual or group caption or subcaption as the
commissioner may approve. [1951 c 229 § 17. Prior: 1947 c
79 § .20.20; Rem. Supp. 1947 § 45.20.20.]
(2004 Ed.)
48.20.192 Optional standard provision No. 15—
Other insurance in this insurer. There may be a provision
as follows:
OTHER INSURANCE IN THIS INSURER: If an accident or sickness or accident and sickness policy or policies
previously issued by the insurer to the insured be in force
concurrently herewith, making the aggregate indemnity for
. . . . . . . . . (insert type of coverage or coverages) in excess of
$. . . . . . (insert maximum limit of indemnity or indemnities)
the excess insurance shall be void and all premiums paid for
such excess shall be returned to the insured or to his estate.
Or, in lieu thereof:
Insurance effective at any one time on the insured under
a like policy or policies in this insurer is limited to the one
such policy elected by the insured, his beneficiary or his
estate, as the case may be, and the insurer will return all premiums paid for all other such policies. [1951 c 229 § 20.
Prior: 1947 c 79 § .20.24; Rem. Supp. 1947 § 45.20.24.]
48.20.192
48.20.202 Optional standard provision No. 16—
Insurance with other insurers (Provision of service or
expense incurred basis). (1) There may be a provision as
follows:
INSURANCE WITH OTHER INSURERS: If there be
other valid coverage, not with this insurer, providing benefits
for the same loss on a provision of service basis or on an
expense incurred basis and of which this insurer has not been
given written notice prior to the occurrence or commence48.20.202
[Title 48 RCW—page 119]
48.20.212
Title 48 RCW: Insurance
ment of loss, the only liability under any expense incurred
coverage of this policy shall be for such proportion of the loss
as the amount which would otherwise have been payable
hereunder plus the total of the like amounts under all such
other valid coverages for the same loss of which this insurer
had notice bears to the total like amounts under all valid coverages for such loss, and for the return of such portion of the
premiums paid as shall exceed the pro rata portion for the
amount so determined. For the purpose of applying this provision when other coverage is on a provision of service basis,
the "like amount" of such other coverage shall be taken as the
amount which the services rendered would have cost in the
absence of such coverage.
(2) If the foregoing policy provision is included in a policy which also contains the policy provision set out in RCW
48.20.212, there shall be added to the caption of the foregoing provision the phrase ". . . . . . expense incurred benefits."
The insurer may, at its option, include in this provision a definition of "other valid coverage," approved as to form by the
commissioner, which definition shall be limited in subject
matter to coverage provided by organizations subject to regulation by insurance law or by insurance authorities of this or
any other state of the United States or any province of Canada, and by hospital or medical service organizations, and to
any other coverage the inclusion of which may be approved
by the commissioner. In the absence of such definition such
term shall not include group insurance, automobile medical
payments insurance, or coverage provided by hospital or
medical service organizations or by union welfare plans or
employer or employee benefit organizations. For the purpose
of applying the foregoing policy provision with respect to
any insured, any amount of benefit provided for such insured
pursuant to any compulsory benefit statute (including any
workers' compensation or employer's liability statute)
whether provided by a governmental agency or otherwise
shall in all cases be deemed to be "other valid coverage" of
which the insurer has had notice. In applying the foregoing
policy provision no third party liability coverage shall be
included as "other valid coverage." [1987 c 185 § 26; 1951 c
229 § 21. Prior: 1947 c 79 § .20.22; Rem. Supp. 1947 §
45.20.22.]
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
48.20.212
48.20.212 Optional standard provision No. 17—
Insurance with other insurers. (1) There may be a provision as follows:
INSURANCE WITH OTHER INSURERS: If there be
other valid coverage, not with this insurer, providing benefits
for the same loss on other than an expense incurred basis and
of which this insurer has not been given written notice prior
to the occurrence or commencement of loss, the only liability
for such benefits under this policy shall be for such proportion of the indemnities otherwise provided hereunder for such
loss as the like indemnities of which the insurer had notice
(including the indemnities under this policy) bear to the total
amount of all like indemnities for such loss, and for the return
of such portion of the premium paid as shall exceed the pro
rata portion for the indemnities thus determined.
(2) If the foregoing policy provision is included in a policy which also contains the policy provision set out in RCW
[Title 48 RCW—page 120]
48.20.202, there shall be added to the caption of the foregoing provision the phrase ". . . . . . other benefits." The insurer
may, at its option, include in this provision a definition of
"other valid coverage," approved as to form by the commissioner, which definition shall be limited in subject matter to
coverage provided by organizations subject to regulation by
insurance law or by insurance authorities of this or any other
state of the United States or any province of Canada, and to
any other coverage the inclusion of which may be approved
by the commissioner. In the absence of such definition such
term shall not include group insurance, or benefits provided
by union welfare plans or by employer or employee benefit
organizations. For the purpose of applying the foregoing policy provision with respect to any insured, any amount of benefit provided for such insured pursuant to any compulsory
benefit statute (including any workers' compensation or
employer's liability statute) whether provided by a governmental agency or otherwise shall in all cases be deemed to be
"other valid coverage" of which the insurer has had notice. In
applying the foregoing policy provision no third party liability coverage shall be included as "other valid coverage."
[1987 c 185 § 27; 1951 c 229 § 22. Prior: 1947 c 79 § .20.22;
Rem. Supp. 1947 § 45.20.22.]
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
48.20.222
48.20.222 Optional standard provision No. 18—
Relation of earnings to insurance. (1) There may be a provision as follows:
RELATION OF EARNINGS TO INSURANCE: If the
total monthly amount of loss of time benefits promised for
the same loss under all valid loss of time coverage upon the
insured, whether payable on a weekly or monthly basis, shall
exceed the monthly earnings of the insured at the time disability commenced or his average monthly earnings for the
period of two years immediately preceding a disability for
which claim is made, whichever is the greater, the insurer
will be liable only for such proportionate amount of such benefits under this policy as the amount of such monthly earnings of the insured bears to the total amount of monthly benefits for the same loss under all such coverage upon the
insured at the time such disability commences and for the
return of such part of the premiums paid during such two
years as shall exceed the pro rata amount of the premiums for
the benefits actually paid hereunder; but this shall not operate
to reduce the total monthly amount of benefits payable under
all such coverage upon the insured below the sum of two hundred dollars or the sum of the monthly benefits specified in
such coverages, whichever is the lesser, nor shall it operate to
reduce benefits other than those payable for loss of time.
(2) The foregoing policy provision may be inserted only
in a policy which the insured has the right to continue in force
subject to its terms by the timely payment of premiums (a)
until at least age 50 or, (b) in the case of a policy issued after
age 44, for at least five years from its date of issue. The
insurer may, at its option, include in this provision a definition of "valid loss of time coverage," approved as to form by
the commissioner, which definition shall be limited in subject
matter to coverage provided by governmental agencies or by
organizations subject to regulation by insurance law or by
insurance authorities of this or any other state of the United
(2004 Ed.)
Disability Insurance
States or any province of Canada, or to any other coverage
the inclusion of which may be approved by the commissioner
or any combination of such coverages. In the absence of such
definition such term shall not include any coverage provided
for such insured pursuant to any compulsory benefit statute
(including any workers' compensation or employer's liability
statute), or benefits provided by union welfare plans or by
employer or employee benefit organizations. [1987 c 185 §
28; 1951 c 229 § 23.]
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
48.20.232
48.20.232 Optional standard provision No. 19—
Unpaid premium. There may be a provision as follows:
UNPAID PREMIUM: Upon the payment of a claim
under this policy, any premium then due and unpaid or covered by any note or written order may be deducted therefrom.
[1951 c 229 § 24. Prior: 1947 c 79 § .20.23; Rem. Supp. 1947
§ 45.20.23.]
48.20.242
48.20.242 Optional standard provision No. 20—Cancellation. There may be a provision as follows:
CANCELLATION: The insurer may cancel this policy
at any time by written notice delivered to the insured, or
mailed to his last address as shown by the records of the
insurer, stating when, not less than five days thereafter, such
cancellation shall be effective; and after the policy has been
continued beyond its original term the insured may cancel
this policy at any time by written notice delivered or mailed
to the insurer, effective upon receipt or on such later date as
may be specified in such notice. In the event of cancellation,
the insurer will return promptly the unearned portion of any
premium paid. If the insured cancels, the earned premium
shall be computed by the use of the short-rate table last filed
with the state official having supervision of insurance in the
state where the insured resided when the policy was issued. If
the insurer cancels, the earned premium shall be computed
pro rata. Cancellation shall be without prejudice to any claim
originating prior to the effective date of cancellation. [1951 c
229 § 25. Prior: 1947 c 79 § .20.21; Rem. Supp. 1947 §
45.20.21.]
48.20.252
48.20.252 Optional standard provision No. 21—Conformity with state statutes. There may be a provision as follows:
CONFORMITY WITH STATE STATUTES: Any provision of this policy which, on its effective date, is in conflict
with the statutes of the state in which the insured resides on
such date is hereby amended to conform to the minimum
requirements of such statutes. [1951 c 229 § 26.]
48.20.262
48.20.262 Optional standard provision No. 22—Illegal occupation. There may be a provision as follows:
ILLEGAL OCCUPATION: The insurer shall not be liable for any loss to which a contributing cause was the
insured's commission of or attempt to commit a felony or to
which a contributing cause was the insured's being engaged
in an illegal occupation. [1951 c 229 § 27. Prior: 1947 c 79
§ .20.26; Rem. Supp. 1947 § 45.20.26.]
(2004 Ed.)
48.20.322
48.20.282 Order of certain policy provisions. The
provisions which are the subject of RCW 48.20.042 to
*48.20.272, inclusive, or any corresponding provisions
which are used in lieu thereof in accordance with such sections, shall be printed in the consecutive order of the provisions in such sections or, at the insurer's option, any such provision may appear as a unit in any part of the policy, with
other provisions to which it may be logically related, provided the resulting policy shall not be in whole or in part
unintelligible, uncertain, ambiguous, abstruse, or likely to
mislead a person to whom the policy is offered, delivered or
issued. [1951 c 229 § 29.]
48.20.282
*Reviser's note: RCW 48.20.272 was repealed by 2004 c 112 § 6.
48.20.292 Third party ownership. The word
"insured," as used in this chapter, shall not be construed as
preventing a person other than the insured with a proper
insurable interest from making application for and owning a
policy covering the insured or from being entitled under such
a policy to any indemnities, benefits and rights provided
therein. [1951 c 229 § 30.]
48.20.292
Insurable interest defined, personal insurance, nonprofit organizations:
RCW 48.18.030.
48.20.302 Requirements of other jurisdictions. (1)
Any policy of a foreign or alien insurer, when delivered or
issued for delivery to any person in this state, may contain
any provision which is not less favorable to the insured or to
the beneficiary than the provisions of this chapter and which
is prescribed or required by the laws of the state under which
the insurer is organized.
(2) Any policy of a domestic insurer may, when issued
for delivery in any other state or country, contain any provision permitted or required by the laws of such other state or
country. [1951 c 229 § 31.]
48.20.302
Domestic insurer may transact insurance in other state as permitted by laws
thereof: RCW 48.07.140.
48.20.312 Age limit. If any such policy contains a provision establishing, as an age limit or otherwise, a date after
which the coverage provided by the policy will not be effective, and if such date falls within a period for which premium
is accepted by the insurer or if the insurer accepts a premium
after such date, the coverage provided by the policy will continue in force subject to any right of cancellation until the end
of the period for which premium has been accepted. In the
event the age of the insured has been misstated and if, according to the correct age of the insured, the coverage provided by
the policy would not have become effective, or would have
ceased prior to the acceptance of such premium or premiums,
then the liability of the insurer shall be limited to the refund,
upon request, of all premiums paid for the period not covered
by the policy. [1951 c 229 § 32. Prior: 1947 c 79 § .20.25;
Rem. Supp. 1947 § 45.20.25.]
48.20.312
48.20.322 Effective date of standard provision and
certain other sections—Five year period. The provisions
contained in RCW 48.20.002 to 48.20.322, inclusive, shall
take effect on September 1, 1951. A policy, rider or endorsement, which could have been lawfully used or delivered or
issued for delivery to any person in this state immediately
48.20.322
[Title 48 RCW—page 121]
48.20.340
Title 48 RCW: Insurance
before such effective date may be used or delivered or issued
for delivery to any such person during five years after such
effective date. [1951 c 229 § 33.]
48.20.340
48.20.340 "Family expense disability insurance"
defined. (1) Family expense disability insurance is that covering members of any one family including one or both
spouses and dependents provided under a master policy
issued to the head of the family.
(2) Any authorized disability insurer may issue family
expense disability insurance.
(3) A disability policy providing such family expense
coverage, in addition to other provisions required to be contained in disability policies under this chapter, shall contain
the following provisions:
(a) A provision that the policy and the application of the
head of the family shall constitute the entire contract between
the parties.
(b) A provision that to the family group originally
insured shall, on notice to the insurer, be added from time to
time all new members of the family as they become eligible
for insurance in such family group, and on the payment of
such additional premium as may be required therefor. [1961
c 194 § 5; 1947 c 79 § .20.34; Rem. Supp. 1947 § 45.20.34.]
48.20.380
48.20.380 Incontestability after reinstatement. The
reinstatement of any policy of noncancellable disability
insurance hereafter delivered or issued for delivery in this
state shall be contestable only on account of fraud or misrepresentation of facts material to the reinstatement and only for
the same period following reinstatement as is provided in the
policy with respect to the contestability thereof after the original issuance of the policy. [1947 c 79 § .20.38; Rem. Supp.
1947 § 45.20.38.]
48.20.385
48.20.385 When injury caused by intoxication or use
of narcotics. An insurer may not deny coverage for the treatment of an injury solely because the injury was sustained as a
consequence of the insured's being intoxicated or under the
influence of a narcotic. [2004 c 112 § 2.]
Finding—2004 c 112: "The legislature finds that an alcohol or drugrelated injury that requires treatment in an emergency department can be a
critical moment in the life of a person with a substance abuse problem. Studies have demonstrated that appropriate interventions by hospital staff at these
times can reduce substance abuse and lower future health care costs. The
perception among health care providers that they may be penalized by insurers for conducting these interventions prevents many of them from performing interventions which can make all the difference to a person at the crossroads of a substance abuse problem." [2004 c 112 § 1.]
Application—2004 c 112: "This act applies to all contracts issued or
renewed on or after June 10, 2004." [2004 c 112 § 7.]
48.20.390
48.20.350
48.20.350 "Franchise plan" defined. (1) Disability
insurance on a franchise plan is that issued to
(a) five or more employees of a common employer, or to
(b) ten or more members of any bona fide trade or professional association or labor union, which association or
union was formed and exists for purposes other than that of
obtaining insurance, and under which such employees or
members, with or without their dependents, are issued individual policies which may vary as to amounts and kinds of
coverage as applied for, under an arrangement whereby the
premiums on the policies are to be paid to the insurer periodically by the employer, with or without payroll deductions, or
by the association, or by some designated employee or officer
of the association acting on behalf of the employer or association members.
(2) An insurer may charge different rates, provide different benefits, or employ different underwriting procedure for
individuals insured under a franchise plan, if such rates, benefits, or procedures as used do not discriminate as between
franchise plans, and do not discriminate unfairly as between
individuals insured under franchise plans and individuals otherwise insured under similar policies. [1947 c 79 § .20.35;
Rem. Supp. 1947 § 45.20.35.]
48.20.360
48.20.360 Extended disability benefit. A disability
insurance contract which provides a reasonable amount of
disability indemnity for both accidental injuries and sickness,
other than a contract of group or blanket insurance, may provide a benefit in amount not exceeding two hundred dollars
payable in event of death from any causes. Such benefit shall
be deemed to constitute the payment of disability benefits
beyond the period for which otherwise payable, and shall not
be deemed to constitute life insurance. [1947 c 79 § .20.36;
Rem. Supp. 1947 § 45.20.36.]
[Title 48 RCW—page 122]
48.20.390 Chiropody. Notwithstanding any provision
of any disability insurance contract, benefits shall not be
denied thereunder for any medical or surgical service performed by a holder of a license issued pursuant to chapter
18.22 RCW provided that (1) the service performed was
within the lawful scope of such person's license, and (2) such
contract would have provided benefits if such service had
been performed by a holder of a license issued pursuant to
chapter 18.71 RCW. [1963 c 87 § 1.]
Application—1963 c 87: "This act shall apply to all contracts issued on
or after the effective date of this act." [1963 c 87 § 3.]
48.20.391
48.20.391 Diabetes coverage. The legislature finds that
diabetes imposes a significant health risk and tremendous
financial burden on the citizens and government of the state
of Washington, and that access to the medically accepted
standards of care for diabetes, its treatment and supplies, and
self-management training and education is crucial to prevent
or delay the short and long-term complications of diabetes
and its attendant costs.
(1) The definitions in this subsection apply throughout
this section unless the context clearly requires otherwise.
(a) "Person with diabetes" means a person diagnosed by
a health care provider as having insulin using diabetes, noninsulin using diabetes, or elevated blood glucose levels
induced by pregnancy; and
(b) "Health care provider" means a health care provider
as defined in RCW 48.43.005.
(2) All disability insurance contracts providing health
care services, delivered or issued for delivery in this state and
issued or renewed after January 1, 1998, shall provide benefits for at least the following services and supplies for persons
with diabetes:
(a) For disability insurance contracts that include pharmacy services, appropriate and medically necessary equip(2004 Ed.)
Disability Insurance
ment and supplies, as prescribed by a health care provider,
that includes but is not limited to insulin, syringes, injection
aids, blood glucose monitors, test strips for blood glucose
monitors, visual reading and urine test strips, insulin pumps
and accessories to the pumps, insulin infusion devices, prescriptive oral agents for controlling blood sugar levels, foot
care appliances for prevention of complications associated
with diabetes, and glucagon emergency kits; and
(b) For all disability insurance contracts providing health
care services, outpatient self-management training and education, including medical nutrition therapy, as ordered by the
health care provider. Diabetes outpatient self-management
training and education may be provided only by health care
providers with expertise in diabetes. Nothing in this section
prevents the insurer from restricting patients to seeing only
health care providers who have signed participating provider
agreements with the insurer or an insuring entity under contract with the insurer.
(3) Coverage required under this section may be subject
to customary cost-sharing provisions established for all other
similar services or supplies within a policy.
(4) Health care coverage may not be reduced or eliminated due to this section.
(5) Services required under this section shall be covered
when deemed medically necessary by the medical director, or
his or her designee, subject to any referral and formulary
requirements.
(6) The insurer need not include the coverage required in
this section in a group contract offered to an employer or
other group that offers to its eligible enrollees a self-insured
health plan not subject to mandated benefits status under this
title that does not offer coverage similar to that mandated
under this section.
(7) This section does not apply to the health benefit plan
that provides benefits identical to the schedule of services
covered by the basic health plan, as required by RCW
48.20.028. [1997 c 276 § 2.]
Effective date—1997 c 276: See note following RCW 41.05.185.
48.20.393
48.20.393 Mammograms—Insurance coverage.
Each disability insurance policy issued or renewed after January 1, 1990, that provides coverage for hospital or medical
expenses shall provide coverage for screening or diagnostic
mammography services, provided that such services are
delivered upon the recommendation of the patient's physician
or advanced registered nurse practitioner as authorized by the
nursing care quality assurance commission pursuant to chapter 18.79 RCW or physician assistant pursuant to chapter
18.71A RCW.
This section shall not be construed to prevent the application of standard policy provisions applicable to other benefits such as deductible or copayment provisions. This section
does not limit the authority of an insurer to negotiate rates
and contract with specific providers for the delivery of mammography services. This section shall not apply to medicare
supplement policies or supplemental contracts covering a
specified disease or other limited benefits. [1994 sp.s. c 9 §
728; 1989 c 338 § 1.]
Severability—Headings and captions not law—Effective date—
1994 sp.s. c 9: See RCW 18.79.900 through 18.79.902.
(2004 Ed.)
48.20.411
48.20.395
48.20.395 Reconstructive breast surgery. (1) Any
disability insurance contract providing hospital and medical
expenses and health care services delivered or issued in this
state after July 24, 1983, shall provide coverage for reconstructive breast surgery resulting from a mastectomy which
resulted from disease, illness, or injury.
(2) Any disability insurance contract providing hospital
and medical expenses and health care services delivered or
issued in this state after January 1, 1986, shall provide coverage for all stages of one reconstructive breast reduction on the
nondiseased breast to make it equal in size with the diseased
breast after definitive reconstructive surgery on the diseased
breast has been performed. [1985 c 54 § 5; 1983 c 113 § 1.]
Effective date—1985 c 54: See note following RCW 48.20.397.
48.20.397
48.20.397 Mastectomy, lumpectomy. No person
engaged in the business of insurance under this chapter may
refuse to issue any contract of insurance or cancel or decline
to renew the contract solely because of a mastectomy or
lumpectomy performed on the insured or prospective insured
more than five years previously. The amount of benefits payable, or any term, rate, condition, or type of coverage shall
not be restricted, modified, excluded, increased, or reduced
solely on the basis of a mastectomy or lumpectomy performed on the insured or prospective insured more than five
years previously. [1985 c 54 § 1.]
Effective date—1985 c 54: "This act shall take effect January 1, 1986."
[1985 c 54 § 9.]
48.20.410
48.20.410 Optometry. Notwithstanding any provision
of any disability insurance contract, benefits shall not be
denied thereunder for any eye care service rendered by a
holder of a license issued pursuant to chapter 18.53 RCW,
provided, that (1) the service rendered was within the lawful
scope of such person's license, and (2) such contract would
have provided the benefits for such service if rendered by a
holder of a license issued pursuant to chapter 18.71 RCW.
[1965 c 149 § 2.]
Construction—1965 c 149: "Sections 1 through 3 of this act shall not
apply to contracts in force prior to the effective date of this 1965 act, nor to
any renewal of such contracts where there has been no change in any provisions thereof." [1965 c 149 § 4.]
48.20.411
48.20.411 Registered nurses or advanced registered
nurses. Notwithstanding any provision of any disability
insurance contract as provided for in this chapter, benefits
shall not be denied thereunder for any health care service performed by a holder of a license for registered nursing practice
or advanced registered nursing practice issued pursuant to
chapter 18.79 RCW if (1) the service performed was within
the lawful scope of such person's license, and (2) such contract would have provided benefits if such service had been
performed by a holder of a license issued pursuant to chapter
18.71 RCW: PROVIDED, HOWEVER, That no provision
of chapter 18.71 RCW shall be asserted to deny benefits
under this section.
The provisions of this section are intended to be remedial
and procedural to the extent they do not impair the obligation
of any existing contract. [1994 sp.s. c 9 § 729; 1973 1st ex.s.
c 188 § 3.]
[Title 48 RCW—page 123]
48.20.412
Title 48 RCW: Insurance
Severability—Headings and captions not law—Effective date—
1994 sp.s. c 9: See RCW 18.79.900 through 18.79.902.
Severability—1973 1st ex.s. c 188: See note following RCW
48.18.298.
48.20.412
48.20.412 Chiropractic. Notwithstanding any provision of any disability insurance contract as provided for in
this chapter, benefits shall not be denied thereunder for any
health care service performed by a holder of a license issued
pursuant to chapter 18.25 RCW if (1) the service performed
was within the lawful scope of such person's license, and (2)
such contract would have provided benefits if such service
had been performed by a holder of a license issued pursuant
to chapter 18.71 RCW: PROVIDED, HOWEVER, That no
provision of chapter 18.71 RCW shall be asserted to deny
benefits under this section.
The provisions of this section are intended to be remedial
and procedural to the extent they do not impair the obligation
of any existing contract. [1971 ex.s. c 13 § 1.]
48.20.414
48.20.414 Psychological services. Notwithstanding
any provision of any disability insurance contract, benefits
shall not be denied thereunder for any psychological service
rendered by a holder of a license issued pursuant to chapter
18.83 RCW: PROVIDED, That (1) the service rendered was
within the lawful scope of such person's license, and (2) such
contract would have provided the benefits for such service if
rendered by a holder of a license issued pursuant to chapter
18.71 RCW. [1971 ex.s. c 197 § 1.]
Application—1971 ex.s. c 197: "Sections 1 and 2 of this act shall not
apply to any contract in force prior to the effective date of this 1971 act, nor
to any renewal of such contract where there has been no change in any provision thereof." [1971 ex.s. c 197 § 3.]
48.20.416
48.20.416 Dentistry. Notwithstanding any provision of
any disability insurance contract as provided for in this chapter, benefits shall not be denied thereunder for any health care
service performed by a holder of a license issued pursuant to
chapter 18.32 RCW if (1) the service performed was within
the lawful scope of such person's license, and (2) such contract would have provided benefits if such service has [had]
been performed by a holder of a license issued [pursuant] to
chapter 18.71 RCW: PROVIDED, HOWEVER, That no
provision of chapter 18.71 RCW shall be asserted to deny
benefits under this section.
The provisions of this section are intended to be remedial
and procedural to the extent they do not impair the obligation
of any existing contract. [1974 ex.s. c 42 § 1.]
48.20.418
48.20.418 Denturist services. Notwithstanding any
provision of any disability insurance contract covering dental
care as provided for in this chapter, effective January 1, 1995,
benefits shall not be denied thereunder for any service performed by a denturist licensed under chapter 18.30 RCW if
(1) the service performed was within the lawful scope of such
person's license, and (2) such contract would have provided
benefits if such service had been performed by a dentist
licensed under chapter 18.32 RCW. [1995 c 1 § 21 (Initiative
Measure No. 607, approved November 8, 1994).]
Short title—Severability—1995 c 1 (Initiative Measure No. 607):
See RCW 18.30.900 and 18.30.901.
[Title 48 RCW—page 124]
48.20.420 Dependent child coverage—Continuation
for incapacity. Any disability insurance contract providing
health care services, delivered or issued for delivery in this
state more than one hundred twenty days after August 11,
1969, which provides that coverage of a dependent child shall
terminate upon attainment of the limiting age for dependent
children specified in the contract, shall also provide in substance that attainment of such limiting age shall not operate to
terminate the coverage of such child while the child is and
continues to be both (1) incapable of self-sustaining employment by reason of developmental disability or physical handicap and (2) chiefly dependent upon the subscriber for support and maintenance, provided proof of such incapacity and
dependency is furnished to the insurer by the subscriber
within thirty-one days of the child's attainment of the limiting
age and subsequently as may be required by the insurer but
not more frequently than annually after the two year period
following the child's attainment of the limiting age. [1985 c
264 § 10; 1969 ex.s. c 128 § 3.]
48.20.420
48.20.430 Dependent child coverage—From moment
of birth—Congenital anomalies—Notification of birth.
(1) Any disability insurance contract providing hospital and
medical expenses and health care services, delivered or
issued for delivery in this state more than one hundred twenty
days after February 16, 1974, which provides coverage for
dependent children of the insured, shall provide coverage for
newborn infants of the insured from and after the moment of
birth. Coverage provided in accord with this section shall
include, but not be limited to, coverage for congenital anomalies of such infant children from the moment of birth.
(2) If payment of an additional premium is required to
provide coverage for a child, the contract may require that
notification of birth of a newly born child and payment of the
required premium must be furnished to the insurer. The notification period shall be no less than sixty days from the date
of birth. This subsection applies to policies issued or renewed
on or after January 1, 1984. [1983 1st ex.s. c 32 § 18; 1974
ex.s. c 139 § 1.]
48.20.430
48.20.450 Standardization and simplification of
terms and coverages—Disclosure requirements. The
commissioner shall issue regulations to establish specific
standards, including standards of full and fair disclosure, that
set forth the manner, content, and required disclosure for the
sale of individual policies of disability insurance which shall
be in addition to and in accordance with applicable laws of
this state, including RCW 48.20.450 through 48.20.480,
which may cover but shall not be limited to:
(1) Terms of renewability;
(2) Initial and subsequent conditions of eligibility;
(3) Nonduplication of coverage provisions;
(4) Coverage of dependents;
(5) Preexisting conditions;
(6) Termination of insurance;
(7) Probationary periods;
(8) Limitations;
(9) Exceptions;
(10) Reductions;
(11) Elimination periods;
(12) Requirements for replacement;
48.20.450
(2004 Ed.)
Disability Insurance
(13) Recurrent conditions; and
(14) The definition of terms including but not limited to
the following: Hospital, accident, sickness, injury, physician,
accidental means, total disability, partial disability, nervous
disorder, guaranteed renewable, and noncancellable. [1985 c
264 § 11; 1975 1st ex.s. c 266 § 16.]
Purpose—1975 1st ex.s. c 266: "The purpose of *sections 14 through
18 of this 1975 amendatory act is to provide reasonable standardization and
simplification of terms and coverages of individual disability insurance policies to facilitate public understanding and comparison, to eliminate provisions contained in individual disability insurance policies which may be misleading or unreasonably confusing in connection either with the purchase of
such coverages or with the settlement of claims, and to provide for full disclosure in the sale of disability coverages." [1975 1st ex.s. c 266 § 15.]
*Reviser's note: During the course of passage of 1975 1st ex.s. c 266
[Substitute House Bill No. 198], the section numbering was changed, but the
internal references were not changed accordingly. Thus the reference "sections 14 through 18 of this 1975 amendatory act" appears to be erroneous.
Reference to "sections 15 through 19," codified herein as this section and
RCW 48.20.450 through 48.20.480, was apparently intended.
Severability—1975 1st ex.s. c 266: See note following RCW
48.01.010.
48.20.460
48.20.460 Standardization and simplification—Minimum standards for benefits and coverages. (1) The commissioner shall issue regulations to establish minimum standards for benefits under each of the following categories of
coverage in individual policies, other than conversion policies issued pursuant to a contractual conversion privilege
under a group policy, of disability insurance:
(a) Basic hospital expense coverage;
(b) Basic medical-surgical expense coverage;
(c) Hospital confinement indemnity coverage;
(d) Major medical expense coverage;
(e) Disability income protection coverage;
(f) Accident only coverage;
(g) Specified disease or specified accident coverage;
(h) Medicare supplemental coverage; and
(i) Limited benefit coverage.
(2) Nothing in this section shall preclude the issuance of
any policy which combines two or more of the categories of
coverage enumerated in items (a) through (f) of subsection
(1) of this section.
(3) No policy shall be delivered or issued for delivery in
this state which does not meet the prescribed minimum standards for the categories of coverage listed in items (a)
through (i) of subsection (1) of this section, unless the commissioner finds such policy will be in the public interest and
such policy meets the requirements set forth in RCW
48.18.110.
(4) The commissioner shall prescribe the method of
identification of policies based upon coverages provided.
[1981 c 339 § 19; 1975 1st ex.s. c 266 § 17.]
Severability—1975 1st ex.s. c 266: See note following RCW
48.01.010.
48.20.470
48.20.470 Standardization and simplification—Outline of coverage—Format and contents. (1) No policy of
individual disability insurance shall be delivered or issued for
delivery in this state unless an outline of coverage described
in subsection (2) of this section is furnished to the applicant
in accord with such rules or regulations as the commissioner
shall prescribe.
(2004 Ed.)
48.20.500
(2) The commissioner shall prescribe the format and
content of the outline of coverage required by subsection (1)
of this section. "Format" means style, arrangement, and overall appearance, including such items as the size, color, and
prominence of type and the arrangement of text and captions.
Such outline of coverage shall include:
(a) A statement identifying the applicable category or
categories of coverage provided by the policy as prescribed in
RCW 48.20.450;
(b) A description of the principal benefits and coverage
provided in the policy;
(c) A statement of the exceptions, reductions and limitations contained in the policy;
(d) A statement of the renewal provisions including any
reservation by the insurer of a right to change premiums; and
(e) A statement that the outline is a summary of the policy issued or applied for and that the policy should be consulted to determine governing contractual provisions. [1985
c 264 § 12; 1975 1st ex.s. c 266 § 18.]
Severability—1975 1st ex.s. c 266: See note following RCW
48.01.010.
48.20.480
48.20.480 Standardization and simplification—Simplified application form—Coverage of loss from preexisting health condition. Notwithstanding the provisions of
RCW 48.20.052, if an insurer elects to use a simplified application form, with or without a question as to the applicant's
health at the time of application, but without any questions
concerning the insured's health history or medical treatment
history, the policy must cover any loss occurring after twelve
months from any preexisting condition not specifically
excluded from coverage by terms of the policy, and, except as
so provided, the policy shall not include wording that would
permit a defense based upon preexisting conditions. [1975
1st ex.s. c 266 § 19.]
Severability—1975 1st ex.s. c 266: See note following RCW
48.01.010.
48.20.490
48.20.490 Continuation of coverage by former
spouse and dependents. Every policy of disability insurance issued, amended, or renewed after June 12, 1980, for an
individual and his/her dependents shall contain provisions to
assure that the covered spouse and/or dependents, in the
event that any cease to be a qualified family member by reason of termination of marriage or death of the principal
insured, shall have the right to continue the policy coverage
without a physical examination, statement of health, or other
proof of insurability. [1980 c 10 § 1.]
48.20.500
48.20.500 Coverage for adopted children. (1) Any
disability insurance contract providing hospital and medical
expenses and health care services, delivered or issued for
delivery in this state, which provides coverage for dependent
children, as defined in the contract of the insured, shall cover
adoptive children placed with the insured on the same basis
as other dependents, as provided in RCW 48.01.180.
(2) If payment of an additional premium is required to
provide coverage for a child, the contract may require that
notification of placement of a child for adoption and payment
of the required premium must be furnished to the insurer. The
[Title 48 RCW—page 125]
48.20.510
Title 48 RCW: Insurance
notification period shall be no less than sixty days from the
date of placement. [1986 c 140 § 2.]
Effective date, application—Severability—1986 c 140: See notes following RCW 48.01.180.
48.20.510
48.20.510 Cancellation of rider. Upon application by
an insured, a rider shall be canceled if at least five years after
its issuance, no health care services have been received by the
insured during that time for the condition specified in the
rider, and a physician, selected by the carrier for that purpose,
agrees in writing to the full medical recovery of the insured
from that condition, such agreement not to be unreasonably
withheld. The option of the insured to apply for cancellation
shall be disclosed on the face of the rider in clear and conspicuous language.
For purposes of this section, a rider is a legal document
that modifies a contract to exclude, limit, or reduce coverage
or benefits for specifically named or described preexisting
diseases or physical conditions. [1987 c 37 § 1.]
48.20.520
48.20.520 Phenylketonuria. (1) The legislature finds
that:
(a) Phenylketonuria is a rare inherited genetic disorder.
(b) Children with phenylketonuria are unable to metabolize an essential amino acid, phenylalanine, which is found in
the proteins of most food.
(c) To remain healthy, children with phenylketonuria
must maintain a strict diet and ingest a mineral and vitaminenriched formula.
(d) Children who do not maintain their diets with the formula acquire severe mental and physical difficulties.
(e) Originally, the formulas were listed as prescription
drugs but were reclassified as medical foods to increase their
availability.
(2) Subject to requirements and exceptions which may
be established by rules adopted by the commissioner, any disability insurance contract delivered or issued for delivery or
renewed in this state on or after September 1, 1988, that
insures for hospital or medical expenses shall provide coverage for the formulas necessary for the treatment of phenylketonuria. [1988 c 173 § 1.]
48.20.530
48.20.530 Nonresident pharmacies. For the purposes
of this chapter, a nonresident pharmacy is defined as any
pharmacy located outside this state that ships, mails, or delivers, in any manner, except when delivered in person to an
enrolled participant or his/her representative, controlled substances, legend drugs, or devices into this state.
After October 1, 1991, an insurer providing coverage of
prescription drugs from nonresident pharmacies may only
provide coverage from licensed nonresident pharmacies. The
insurers shall obtain proof of current licensure in conformity
with this section and RCW 18.64.350 through 18.64.400
from the nonresident pharmacy and keep that proof of licensure on file.
The department of health may request from the insurer
the proof of current licensure for all nonresident pharmacies
through which the insurer is providing coverage for prescription drugs to residents of the state of Washington. This information, which may constitute a full or partial customer list,
shall be confidential and exempt from public disclosure, and
from the requirements of chapter 42.17 RCW. The board or
the department shall not be restricted in the disclosure of the
name of a nonresident pharmacy that is or has been licensed
under RCW 18.64.360 or 18.64.370 or of the identity of a
nonresident pharmacy disciplined under RCW 18.64.350
through 18.64.400. [1991 c 87 § 7.]
Effective date—1991 c 87: See note following RCW 18.64.350.
Chapter 48.21 RCW
GROUP AND BLANKET DISABILITY INSURANCE
Chapter 48.21
Sections
48.21.010
48.21.015
48.21.020
48.21.030
48.21.040
48.21.045
48.21.047
48.21.050
48.21.060
48.21.070
48.21.075
48.20.525
48.20.525 Prescriptions—Preapproval of individual
claims—Subsequent rejection prohibited—Written
record required. Disability insurance companies who
through an authorized representative have first approved, by
any means, an individual prescription claim as eligible may
not reject that claim at some later date. Pharmacists or drug
dispensing outlets who obtain preapproval of claims shall
keep a written record of the preapproval that consists of identification by name and telephone number of the person who
approved the claim. [1993 c 253 § 2.]
Findings—1993 c 253: "The legislature finds that many health care
insurance entities are initially approving claims as eligible under an identified program, over the telephone, but denying those same claims when they
are submitted for payment. The legislature finds this to be an untenable situation for the providers." [1993 c 253 § 1.]
Effective date—1993 c 253: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[May 7, 1993]." [1993 c 253 § 6.]
[Title 48 RCW—page 126]
48.21.080
48.21.090
48.21.100
48.21.110
48.21.120
48.21.125
48.21.130
48.21.140
48.21.141
48.21.142
48.21.143
48.21.144
48.21.146
48.21.148
48.21.150
48.21.155
48.21.160
48.21.180
48.21.190
48.21.195
"Group disability insurance" defined.
"Group stop loss insurance" defined for the purpose of exemption—Scope of application.
"Employees," "employer" defined.
Health care groups.
"Blanket disability insurance" defined.
Health plan benefits for small employers—Coverage—
Exemption from statutory requirements—Premium rates—
Requirements for providing coverage for small employers—
Definitions.
Requirements for plans offered to small employers—Definitions.
Standard provisions required.
The contract—Representations.
Payment of premiums.
Payment of premiums by employee in event of suspension of
compensation due to labor dispute.
Certificates of coverage.
Age limitations.
Examination and autopsy.
Payment of benefits.
Readjustment of premiums—Dividends.
When injury caused by intoxication or use of narcotics.
Chiropody.
Optometry.
Registered nurses or advanced registered nurses.
Chiropractic.
Diabetes coverage—Definitions.
Psychological services.
Dentistry.
Denturist services.
Dependent child coverage—Continuation for incapacity.
Dependent child coverage—From moment of birth—Congenital anomalies—Notification of birth.
Chemical dependency benefits—Legislative declaration.
Chemical dependency benefits—Contracts issued or renewed
after January 1, 1988.
Chemical dependency benefits—RCW 48.21.160 through
48.21.190, 48.44.240 inapplicable, when.
"Chemical dependency" defined.
(2004 Ed.)
Group and Blanket Disability Insurance
48.21.197
48.21.200
48.21.220
48.21.225
48.21.230
48.21.235
48.21.240
48.21.242
48.21.244
48.21.250
48.21.260
48.21.270
48.21.280
48.21.290
48.21.300
48.21.310
48.21.320
48.21.325
48.21.330
Chemical dependency benefits—Rules.
Group disability, health care service contract, health maintenance agreement—Reduction or refusal of benefits on basis
of other existing coverages.
Home health care, hospice care, optional coverage required—
Standards, limitations, restrictions—Rules—Medicare supplemental contracts excluded.
Mammograms—Insurance coverage.
Reconstructive breast surgery.
Mastectomy, lumpectomy.
Mental health treatment, optional supplemental coverage—
Waiver.
Mental health treatment—Waiver of preauthorization for persons involuntarily committed.
Benefits for prenatal diagnosis of congenital disorders—Contracts entered into or renewed on or after January 1, 1990.
Continuation option to be offered.
Conversion policy to be offered—Exceptions, conditions.
Conversion policy—Restrictions and requirements.
Coverage for adopted children.
Cancellation of rider.
Phenylketonuria.
Neurodevelopmental therapies—Employer-sponsored group
contracts.
Temporomandibular joint disorders—Insurance coverage.
Prescriptions—Preapproval of individual claims—Subsequent
rejection prohibited—Written record required.
Nonresident pharmacies.
Irrigation district may contract for and pay premiums on group insurance
for employees: RCW 87.03.160.
Minimum standards for disability policies may be promulgated by commissioner: RCW 48.18.120.
Payment to person designated in policy or by assignment discharges
insurer: RCW 48.18.370.
48.21.040
(2) Payment by the insurer must be made to the
employer, the trustee, or other sponsor of the plan or the plan
itself, but not to the employees, members, participants, or
health care providers;
(3) The policy must contain a provision that establishes
an aggregate attaching point or retention that is at the minimum one hundred twenty percent of the expected claims; and
(4) The policy may provide for an individual attaching
point or retention that is not less than five percent of the
expected claims or one hundred thousand dollars, whichever
is less. [2000 c 80 § 8; 1992 c 226 § 3.]
Application—1992 c 226: See note following RCW 48.11.030.
48.21.020
48.21.020 "Employees," "employer" defined. The
term "employees" as used in this chapter shall be deemed to
include as employees of a single employer, the compensated
officers, managers, and employees of the employer and of
subsidiary or affiliated corporations of a corporation
employer, and the individual proprietors, partners, and
employees of individuals and firms of which the business is
controlled by the insured employer through stock ownership,
contract or otherwise. The term "employer" as used in this
chapter shall be deemed to include any municipal corporation
or governmental unit, agency or department thereof as well as
private individuals, firms, corporations and other persons.
[1947 c 79 § .21.02; Rem. Supp. 1947 § 45.21.02.]
Policy dividends are payable to real party in interest: RCW 48.18.340.
48.21.030
Policy forms, execution, filing, etc.: Chapter 48.18 RCW.
Refusal to renew or cancellation of disability insurance: RCW 48.18.298,
48.18.299.
48.21.010
48.21.010 "Group disability insurance" defined.
Group disability insurance is that form of disability insurance, including stop loss insurance as defined in RCW
48.11.030, provided by a master policy issued to an
employer, to a trustee appointed by an employer or employers, or to an association of employers formed for purposes
other than obtaining such insurance, covering, with or without their dependents, the employees, or specified categories
of the employees, of such employers or their subsidiaries or
affiliates, or issued to a labor union, or to an association of
employees formed for purposes other than obtaining such
insurance, covering, with or without their dependents, the
members, or specified categories of the members, of the labor
union or association, or issued pursuant to RCW 48.21.030.
Group disability insurance shall also include such other
groups as qualify for group life insurance under the provisions of this code. [1992 c 226 § 2; 1949 c 190 § 27; 1947 c
79 § .21.01; Rem. Supp. 1949 § 45.21.01.]
Application—1992 c 226: See note following RCW 48.11.030.
48.21.015
48.21.015 "Group stop loss insurance" defined for
the purpose of exemption—Scope of application. Group
stop loss insurance is exempt from all sections of this chapter
and chapter 48.32A RCW except for RCW 48.21.010 and
this section. For the purpose of this exemption, group stop
loss is further defined as follows:
(1) The policy must be issued to and insure the employer,
the trustee or other sponsor of the plan, or the plan itself, but
not the employees, members, or participants;
(2004 Ed.)
48.21.030 Health care groups. A policy of group disability insurance may be issued to a corporation, as policyholder, existing primarily for the purpose of assisting individuals who are its subscribers in securing medical, hospital,
dental, and other health care services for themselves and their
dependents, covering all and not less than five hundred such
subscribers and dependents, with respect only to medical,
hospital, dental, and other health care services. [1947 c 79 §
.21.03; Rem. Supp. 1947 § 45.21.03.]
48.21.040
48.21.040 "Blanket disability insurance" defined. (1)
Any policy or contract of disability insurance which conforms with the description and complies with the requirements contained in one of the following six paragraphs shall
be deemed a blanket disability insurance policy:
(a) A policy issued to any common carrier of passengers,
which carrier shall be deemed the policyholder, covering a
group defined as all persons who may become such passengers, and whereby such passengers shall be insured against
loss or damage resulting from death or bodily injury either
while, or as a result of, being such passengers.
(b) A policy issued in the name of any volunteer fire
department, first aid or ambulance squad or volunteer police
organization, which shall be deemed the policyholder, and
covering all the members of any such organization against
loss from accidents resulting from hazards incidental to
duties in connection with such organizations.
(c) A policy issued in the name of any established organization whether incorporated or not, having community recognition and operated for the welfare of the community and
its members and not for profit, which shall be deemed the
policyholder, and covering all volunteer workers who serve
without pecuniary compensation and the members of the
[Title 48 RCW—page 127]
48.21.045
Title 48 RCW: Insurance
organization, against loss from accidents occurring while
engaged in the actual performance of duties on behalf of such
organization or in the activities thereof.
(d) A policy issued to an employer, who shall be deemed
the policyholder, covering any group of employees defined
by reference to exceptional hazards incident to such employment, insuring such employees against death or bodily injury
resulting while, or from, being exposed to such exceptional
hazards.
(e) A policy covering students or employees issued to a
college, school, or other institution of learning or to the head
or principal thereof, who or which shall be deemed the policyholder.
(f) A policy or contract issued to any other substantially
similar group, which, in the commissioner's discretion, may
be subject to the insurance of a blanket disability policy or
contract.
(2) Nothing contained in this section shall be deemed to
affect the liability of policyholders for the death of, or injury
to, any such members of such group.
(3) Individual applications shall not be required from
individuals covered under a blanket disability insurance contract. [1959 c 225 § 7; 1947 c 79 § .21.04; Rem. Supp. 1947
§ 45.21.04.]
48.21.045
48.21.045 Health plan benefits for small employers—
Coverage—Exemption from statutory requirements—
Premium rates—Requirements for providing coverage
for small employers—Definitions. (1)(a) An insurer offering any health benefit plan to a small employer, either
directly or through an association or member-governed group
formed specifically for the purpose of purchasing health care,
may offer and actively market to the small employer a health
benefit plan featuring a limited schedule of covered health
care services. Nothing in this subsection shall preclude an
insurer from offering, or a small employer from purchasing,
other health benefit plans that may have more comprehensive
benefits than those included in the product offered under this
subsection. An insurer offering a health benefit plan under
this subsection shall clearly disclose all covered benefits to
the small employer in a brochure filed with the commissioner.
(b) A health benefit plan offered under this subsection
shall provide coverage for hospital expenses and services
rendered by a physician licensed under chapter 18.57 or
18.71 RCW but is not subject to the requirements of RCW
48.21.130, 48.21.140, 48.21.141, 48.21.142, 48.21.144,
48.21.146, 48.21.160 through 48.21.197, 48.21.200,
48.21.220, 48.21.225, 48.21.230, 48.21.235, 48.21.240,
48.21.244, 48.21.250, 48.21.300, 48.21.310, or 48.21.320 .
(2) Nothing in this section shall prohibit an insurer from
offering, or a purchaser from seeking, health benefit plans
with benefits in excess of the health benefit plan offered
under subsection (1) of this section. All forms, policies, and
contracts shall be submitted for approval to the commissioner, and the rates of any plan offered under this section
shall be reasonable in relation to the benefits thereto.
(3) Premium rates for health benefit plans for small
employers as defined in this section shall be subject to the
following provisions:
[Title 48 RCW—page 128]
(a) The insurer shall develop its rates based on an
adjusted community rate and may only vary the adjusted
community rate for:
(i) Geographic area;
(ii) Family size;
(iii) Age; and
(iv) Wellness activities.
(b) The adjustment for age in (a)(iii) of this subsection
may not use age brackets smaller than five-year increments,
which shall begin with age twenty and end with age sixtyfive. Employees under the age of twenty shall be treated as
those age twenty.
(c) The insurer shall be permitted to develop separate
rates for individuals age sixty-five or older for coverage for
which medicare is the primary payer and coverage for which
medicare is not the primary payer. Both rates shall be subject
to the requirements of this subsection (3).
(d) The permitted rates for any age group shall be no
more than four hundred twenty-five percent of the lowest rate
for all age groups on January 1, 1996, four hundred percent
on January 1, 1997, and three hundred seventy-five percent
on January 1, 2000, and thereafter.
(e) A discount for wellness activities shall be permitted
to reflect actuarially justified differences in utilization or cost
attributed to such programs.
(f) The rate charged for a health benefit plan offered
under this section may not be adjusted more frequently than
annually except that the premium may be changed to reflect:
(i) Changes to the enrollment of the small employer;
(ii) Changes to the family composition of the employee;
(iii) Changes to the health benefit plan requested by the
small employer; or
(iv) Changes in government requirements affecting the
health benefit plan.
(g) Rating factors shall produce premiums for identical
groups that differ only by the amounts attributable to plan
design, with the exception of discounts for health improvement programs.
(h) For the purposes of this section, a health benefit plan
that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not
contain such a provision, provided that the restrictions of
benefits to network providers result in substantial differences
in claims costs. A carrier may develop its rates based on
claims costs due to network provider reimbursement schedules or type of network. This subsection does not restrict or
enhance the portability of benefits as provided in RCW
48.43.015.
(i) Adjusted community rates established under this section shall pool the medical experience of all small groups purchasing coverage. However, annual rate adjustments for
each small group health benefit plan may vary by up to plus
or minus four percentage points from the overall adjustment
of a carrier's entire small group pool, such overall adjustment
to be approved by the commissioner, upon a showing by the
carrier, certified by a member of the American academy of
actuaries that: (i) The variation is a result of deductible leverage, benefit design, or provider network characteristics; and
(ii) for a rate renewal period, the projected weighted average
of all small group benefit plans will have a revenue neutral
effect on the carrier's small group pool. Variations of greater
(2004 Ed.)
Group and Blanket Disability Insurance
than four percentage points are subject to review by the commissioner, and must be approved or denied within sixty days
of submittal. A variation that is not denied within sixty days
shall be deemed approved. The commissioner must provide
to the carrier a detailed actuarial justification for any denial
within thirty days of the denial.
(4) Nothing in this section shall restrict the right of
employees to collectively bargain for insurance providing
benefits in excess of those provided herein.
(5)(a) Except as provided in this subsection, requirements used by an insurer in determining whether to provide
coverage to a small employer shall be applied uniformly
among all small employers applying for coverage or receiving coverage from the carrier.
(b) An insurer shall not require a minimum participation
level greater than:
(i) One hundred percent of eligible employees working
for groups with three or less employees; and
(ii) Seventy-five percent of eligible employees working
for groups with more than three employees.
(c) In applying minimum participation requirements
with respect to a small employer, a small employer shall not
consider employees or dependents who have similar existing
coverage in determining whether the applicable percentage of
participation is met.
(d) An insurer may not increase any requirement for
minimum employee participation or modify any requirement
for minimum employer contribution applicable to a small
employer at any time after the small employer has been
accepted for coverage.
(6) An insurer must offer coverage to all eligible
employees of a small employer and their dependents. An
insurer may not offer coverage to only certain individuals or
dependents in a small employer group or to only part of the
group. An insurer may not modify a health plan with respect
to a small employer or any eligible employee or dependent,
through riders, endorsements or otherwise, to restrict or
exclude coverage or benefits for specific diseases, medical
conditions, or services otherwise covered by the plan.
(7) As used in this section, "health benefit plan," "small
employer," "adjusted community rate," and "wellness activities" mean the same as defined in RCW 48.43.005. [2004 c
244 § 1; 1995 c 265 § 14; 1990 c 187 § 2.]
Application—2004 c 244: "Sections 1 through 15 of this act apply to
all small group health benefit plans issued or renewed on or after June 10,
2004." [2004 c 244 § 17.]
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
Finding—Intent—1990 c 187: "The legislature finds that the rising
cost of comprehensive group health coverage is exceeding the affordability
of many small businesses and their employees. The legislature further finds
that certain public policies have an adverse impact on the cost of such coverage. It is therefore the intent of the legislature to reduce costs by authorizing
the development of basic hospital and medical coverage for small groups."
[1990 c 187 § 1.]
Severability—1990 c 187: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1990 c 187 § 6.]
48.21.047
48.21.047 Requirements for plans offered to small
employers—Definitions. (1) No insurer shall offer any
(2004 Ed.)
48.21.075
health benefit plan to any small employer without complying
with the provisions of *RCW 48.21.045(5).
(2) Employers purchasing health plans provided through
associations or through member-governed groups formed
specifically for the purpose of purchasing health care shall
not be considered small employers and such plans shall not
be subject to the provisions of *RCW 48.21.045(5).
(3) For purposes of this section, "health benefit plan,"
"health plan," and "small employer" mean the same as
defined in RCW 48.43.005. [1995 c 265 § 22.]
*Reviser's note: This reference was inadvertently changed during the
bill drafting process. The correct reference should be RCW 48.21.045(3).
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
48.21.050 Standard provisions required. Every policy of group or blanket disability insurance shall contain in
substance the provisions as set forth in RCW 48.21.060 to
48.21.090, inclusive, or provisions which in the opinion of
the commissioner are more favorable to the individuals
insured, or at least as favorable to such individuals and more
favorable to the policyholder. No such policy of group or
blanket disability insurance shall contain any provision relative to notice or proof of loss, or to the time for paying benefits, or to the time within which suit may be brought upon the
policy, which in the opinion of the commissioner is less
favorable to the individuals insured than would be permitted
by the standard provisions required for individual disability
insurance policies. [1947 c 79 § .21.05; Rem. Supp. 1947 §
45.21.05.]
48.21.050
48.21.060 The contract—Representations. There
shall be a provision that a copy of the application, if any, of
the policyholder shall be attached to the policy when issued;
that all statements made by the policyholder or by the individuals insured shall in the absence of fraud be deemed representations and not warranties, and that no statement made
by any individual insured shall be used in any contest unless
a copy of the instrument containing the statement is or has
been furnished to such individual or to his beneficiary, if any.
[1947 c 79 § .21.06; Rem. Supp. 1947 § 45.21.06.]
48.21.060
48.21.070 Payment of premiums. There shall be a provision that all premiums due under the policy shall be remitted by the employer or employers of the persons insured, by
the policyholder, or by some other designated person acting
on behalf of the association or group insured, to the insurer on
or before the due date thereof with such period of grace as
may be specified therein. [1947 c 79 § .21.07; Rem. Supp.
1947 § 45.21.07.]
48.21.070
48.21.075 Payment of premiums by employee in
event of suspension of compensation due to labor dispute.
Any employee whose compensation includes group disability
or blanket disability insurance providing health care services,
the premiums for which are paid in full or in part by an
employer including the state of Washington, its political subdivisions, or municipal corporations, or paid by payroll
deduction, may pay the premiums as they become due
directly to the policyholder whenever the employee's compensation is suspended or terminated directly or indirectly as
48.21.075
[Title 48 RCW—page 129]
48.21.080
Title 48 RCW: Insurance
the result of a strike, lockout, or other labor dispute, for a
period not exceeding six months and at the rate and coverages
as the policy provides. During that period of time the policy
may not be altered or changed. Nothing in this section shall
be deemed to impair the right of the insurer to make normal
decreases or increases of the premium rate upon expiration
and renewal of the policy, in accordance with the provisions
of the policy. Thereafter, if such insurance coverage is no
longer available, then the employee shall be given the opportunity to purchase an individual policy at a rate consistent
with rates filed by the insurer with the commissioner. When
the employee's compensation is so suspended or terminated,
the employee shall be notified immediately by the policyholder in writing, by mail addressed to the address last on
record with the policyholder, that the employee may pay the
premiums to the policyholder as they become due as provided in this section.
Payment of the premiums must be made when due or the
insurance coverage may be terminated by the insurer.
The provisions of any insurance policy contrary to provisions of this section are void and unenforceable after May 29,
1975. [1975 1st ex.s. c 117 § 1.]
Severability—1975 1st ex.s. c 117: "If any provision of this 1975 act,
or its application to any person or circumstance is held invalid, the remainder
of the act, or the application of the provision to other persons or circumstances is not affected." [1975 1st ex.s. c 117 § 4.]
48.21.080
48.21.080 Certificates of coverage. In group disability
insurance policies there shall be a provision that the insurer
shall issue to the employer, the policyholder, or other person
or association in whose name such policy is issued, for delivery to each insured employee or member, a certificate setting
forth in summary form a statement of the essential features of
the insurance coverage, and to whom the benefits thereunder
are payable described by name, relationship, or reference to
the insurance records of the policyholder or insurer. If family
members are insured, only one certificate need be issued for
each family. This section shall not apply to blanket disability
insurance policies. [1961 c 194 § 6; 1947 c 79 § .21.08; Rem.
Supp. 1947 § 45.21.08.]
48.21.090
48.21.090 Age limitations. There shall be a provision
specifying the ages, if any there be, to which the insurance
provided therein shall be limited; and the ages, if any there
be, for which additional restrictions are placed on benefits,
and the additional restrictions placed on the benefits at such
ages. [1947 c 79 § .21.09; Rem. Supp. 1947 § 45.21.09.]
48.21.100
48.21.100 Examination and autopsy. There may be a
provision that the insurer shall have the right and opportunity
to examine the person of the insured employee, member or
dependent when and so often as it may reasonably require
during the pendency of claim under the policy and also the
right and opportunity to make an autopsy in case of death
where it is not prohibited by law. [1947 c 79 § .21.10; Rem.
Supp. 1947 § 45.21.10.]
48.21.110
48.21.110 Payment of benefits. The benefits payable
under any policy or contract of group or blanket disability
insurance shall be payable to the employee or other insured
member of the group or to the beneficiary designated by him,
[Title 48 RCW—page 130]
other than the policyholder, employer or the association or
any officer thereof as such, subject to provisions of the policy
in the event there is no designated beneficiary as to all or any
part of any sum payable at the death of the individual insured.
The policy may provide that any hospital, medical, or
surgical benefits thereunder may be made payable jointly to
the insured employee or member and the person furnishing
such hospital, medical, or surgical services. [1955 c 303 §
17; 1947 c 79 § .21.11; Rem. Supp. 1947 § 45.21.11.]
48.21.120
48.21.120 Readjustment of premiums—Dividends.
Any contract of group disability insurance may provide for
the readjustment of the rate of premium based on the experience thereunder at the end of the first year or of any subsequent year of insurance thereunder, and such readjustment
may be made retroactive only for such policy year. Any
refund under any plan for readjustment of the rate of premium based on the experience under group policies heretofore or hereafter issued, and any dividend paid under such
policies may be used to reduce the employer's share of the
cost of the coverage, except that if the aggregate refunds or
dividends under such group policy and any other group policy or contract issued to the policyholder exceed the aggregate contributions of the employer toward the cost of the coverages, such excess shall be applied by the policyholder for
the sole benefit of insured employees. [1947 c 79 § .21.12;
Rem. Supp. 1947 § 45.21.12.]
48.21.125
48.21.125 When injury caused by intoxication or use
of narcotics. An insurer may not deny coverage for the treatment of an injury solely because the injury was sustained as a
consequence of the insured's being intoxicated or under the
influence of a narcotic. [2004 c 112 § 3.]
Finding—Application—2004 c 112: See notes following RCW
48.20.385.
48.21.130
48.21.130 Chiropody. Notwithstanding any provision
of any group disability insurance contract or blanket disability insurance contract, benefits shall not be denied thereunder
for any medical or surgical service performed by a holder of
a license issued pursuant to chapter 18.22 RCW provided that
(1) the service performed was within the lawful scope of such
person's license, and (2) such contract would have provided
benefits if such service had been performed by a holder of a
license issued pursuant to chapter 18.71 RCW. [1963 c 87 §
2.]
Application—1963 c 87: Nonapplicability to prior contracts and certain renewals, see note following RCW 48.20.390.
48.21.140
48.21.140 Optometry. Notwithstanding any provision
of any group disability insurance contract or blanket disability insurance contract, benefits shall not be denied thereunder
for any eye care service rendered by a holder of a license
issued pursuant to chapter 18.53 RCW, provided, that (1) the
service rendered was within the lawful scope of such person's
license, and (2) such contract would have provided the benefits for such service if rendered by a holder of a license issued
pursuant to chapter 18.71 RCW. [1965 c 149 § 3.]
Construction—1965 c 149: Nonapplicability to prior contracts and
certain renewals, see note following RCW 48.20.410.
(2004 Ed.)
Group and Blanket Disability Insurance
48.21.141
48.21.141 Registered nurses or advanced registered
nurses. Notwithstanding any provision of any group disability insurance contract or blanket disability insurance contract
as provided for in this chapter, benefits shall not be denied
thereunder for any health service performed by a holder of a
license for registered nursing practice or advanced registered
nursing practice issued pursuant to chapter 18.79 RCW if (1)
the service performed was within the lawful scope of such
person's license, and (2) such contract would have provided
benefits if such service had been performed by a holder of a
license issued pursuant to chapter 18.71 RCW: PROVIDED,
HOWEVER, That no provision of chapter 18.71 RCW shall
be asserted to deny benefits under this section.
The provisions of this section are intended to be remedial
and procedural to the extent they do not impair the obligation
of any existing contract. [1994 sp.s. c 9 § 730; 1973 1st ex.s.
c 188 § 4.]
Severability—Headings and captions not law—Effective date—
1994 sp.s. c 9: See RCW 18.79.900 through 18.79.902.
Severability—1973 1st ex.s. c 188: See note following RCW
48.18.298.
48.21.142
48.21.142 Chiropractic. Notwithstanding any provision of any group disability insurance contract or blanket disability insurance contract as provided for in this chapter, benefits shall not be denied thereunder for any health service performed by a holder of a license issued pursuant to chapter
18.25 RCW if (1) the service performed was within the lawful scope of such person's license, and (2) such contract
would have provided benefits if such service had been performed by a holder of a license issued pursuant to chapter
18.71 RCW: PROVIDED, HOWEVER, That no provision
of chapter 18.71 RCW shall be asserted to deny benefits
under this section.
The provisions of this section are intended to be remedial
and procedural to the extent they do not impair the obligation
of any existing contract. [1971 ex.s. c 13 § 2.]
48.21.143
48.21.143 Diabetes coverage—Definitions. The legislature finds that diabetes imposes a significant health risk and
tremendous financial burden on the citizens and government
of the state of Washington, and that access to the medically
accepted standards of care for diabetes, its treatment and supplies, and self-management training and education is crucial
to prevent or delay the short and long-term complications of
diabetes and its attendant costs.
(1) The definitions in this subsection apply throughout
this section unless the context clearly requires otherwise.
(a) "Person with diabetes" means a person diagnosed by
a health care provider as having insulin using diabetes, noninsulin using diabetes, or elevated blood glucose levels
induced by pregnancy; and
(b) "Health care provider" means a health care provider
as defined in RCW 48.43.005.
(2) All group disability insurance contracts and blanket
disability insurance contracts providing health care services,
issued or renewed after January 1, 1998, shall provide benefits for at least the following services and supplies for persons
with diabetes:
(a) For group disability insurance contracts and blanket
disability insurance contracts that include coverage for phar(2004 Ed.)
48.21.146
macy services, appropriate and medically necessary equipment and supplies, as prescribed by a health care provider,
that includes but is not limited to insulin, syringes, injection
aids, blood glucose monitors, test strips for blood glucose
monitors, visual reading and urine test strips, insulin pumps
and accessories to the pumps, insulin infusion devices, prescriptive oral agents for controlling blood sugar levels, foot
care appliances for prevention of complications associated
with diabetes, and glucagon emergency kits; and
(b) For all group disability insurance contracts and blanket disability insurance contracts providing health care services, outpatient self-management training and education,
including medical nutrition therapy, as ordered by the health
care provider. Diabetes outpatient self-management training
and education may be provided only by health care providers
with expertise in diabetes. Nothing in this section prevents
the insurer from restricting patients to seeing only health care
providers who have signed participating provider agreements
with the insurer or an insuring entity under contract with the
insurer.
(3) Coverage required under this section may be subject
to customary cost-sharing provisions established for all other
similar services or supplies within a policy.
(4) Health care coverage may not be reduced or eliminated due to this section.
(5) Services required under this section shall be covered
when deemed medically necessary by the medical director, or
his or her designee, subject to any referral and formulary
requirements.
(6) The insurer need not include the coverage required in
this section in a group contract offered to an employer or
other group that offers to its eligible enrollees a self-insured
health plan not subject to mandated benefits status under this
title that does not offer coverage similar to that mandated
under this section.
(7) This section does not apply to the health benefit plan
that provides benefits identical to the schedule of services
covered by the basic health plan. [2004 c 244 § 10; 1997 c
276 § 3.]
Application—2004 c 244: See note following RCW 48.21.045.
Effective date—1997 c 276: See note following RCW 41.05.185.
48.21.144
48.21.144 Psychological services. Notwithstanding
any provision of any group disability insurance contract or
blanket disability insurance contract, benefits shall not be
denied thereunder for any psychological service rendered by
a holder of a license issued pursuant to chapter 18.83 RCW:
PROVIDED, That (1) the service rendered was within the
lawful scope of such person's license, and (2) such contract
would have provided the benefits for such service if rendered
by a holder of a license issued pursuant to chapter 18.71
RCW. [1971 ex.s. c 197 § 2.]
Application—1971 ex.s. c 197: See note following RCW 48.20.414.
48.21.146
48.21.146 Dentistry. Notwithstanding any provision of
any group disability insurance contract or blanket disability
insurance contract as provided for in this chapter, benefits
shall not be denied thereunder for any health service performed by a holder of a license issued pursuant to chapter
18.32 RCW if (1) the service performed was within the law[Title 48 RCW—page 131]
48.21.148
Title 48 RCW: Insurance
ful scope of such person's license, and (2) such contract
would have provided benefits if such service had been performed by a holder of a license issued pursuant to chapter
18.71 RCW: PROVIDED, HOWEVER, That no provision
of chapter 18.71 RCW shall be asserted to deny benefits
under this section.
The provisions of this section are intended to be remedial
and procedural to the extent they do not impair the obligation
of any existing contract. [1974 ex.s. c 42 § 2.]
(2) If payment of an additional premium is required to
provide coverage for a child, the contract may require that
notification of birth of a newly born child and payment of the
required premium must be furnished to the insurer. The notification period shall be no less than sixty days from the date
of birth. This subsection applies to policies issued or renewed
on or after January 1, 1984. [1983 1st ex.s. c 32 § 20; 1974
ex.s. c 139 § 2.]
48.21.160
48.21.148 Denturist services. Notwithstanding any
provision of any group disability insurance contract or blanket disability insurance contract covering dental care as provided for in this chapter, effective January 1, 1995, benefits
shall not be denied thereunder for any service performed by a
denturist licensed under chapter 18.30 RCW if (1) the service
performed was within the lawful scope of such person's
license, and (2) such contract would have provided benefits if
such service had been performed by a dentist licensed under
chapter 18.32 RCW. [1995 c 1 § 22 (Initiative Measure No.
607, approved November 8, 1994).]
48.21.148
Short title—Severability—1995 c 1 (Initiative Measure No. 607):
See RCW 18.30.900 and 18.30.901.
48.21.150 Dependent child coverage—Continuation
for incapacity. Any group disability insurance contract or
blanket disability insurance contract, providing health care
services, delivered or issued for delivery in this state more
than one hundred twenty days after August 11, 1969, which
provides that coverage of a dependent child of an employee
or other member of the covered group shall terminate upon
attainment of the limiting age for dependent children specified in the contract shall also provide in substance that attainment of such limiting age shall not operate to terminate the
coverage of such child while the child is and continues to be
both (1) incapable of self-sustaining employment by reason
of developmental disability or physical handicap and (2)
chiefly dependent upon the employee or member for support
and maintenance, provided proof of such incapacity and
dependency is furnished to the insurer by the employee or
member within thirty-one days of the child's attainment of the
limiting age and subsequently as may be required by the
insurer, but not more frequently than annually after the two
year period following the child's attainment of the limiting
age. [1977 ex.s. c 80 § 32; 1969 ex.s. c 128 § 4.]
48.21.150
Purpose—Intent—Severability—1977 ex.s. c 80: See notes following RCW 4.16.190.
48.21.155
48.21.155 Dependent child coverage—From moment
of birth—Congenital anomalies—Notification of birth.
(1) Any group disability insurance contract except blanket
disability insurance contract, providing hospital and medical
expenses and health care services, renewed, delivered or
issued for delivery in this state more than one hundred twenty
days after February 16, 1974, which provides coverage for
the dependent children of persons in the insured group, shall
provide coverage for newborn infant children of persons in
the insured group from and after the moment of birth. Coverage provided in accord with this section shall include, but not
be limited to, coverage for congenital anomalies of such
infant children from the moment of birth.
[Title 48 RCW—page 132]
48.21.160 Chemical dependency benefits—Legislative declaration. The legislature recognizes that chemical
dependency is a disease and, as such, warrants the same
attention from the health care industry as other similarly serious diseases warrant; the legislature further recognizes that
health insurance contracts and contracts for health care services include inconsistent provisions providing benefits for
the treatment of chemical dependency. In order to assist the
many citizens of this state who suffer from the disease of
chemical dependency, and who are presently effectively precluded from obtaining adequate coverage for medical assistance under the terms of their health insurance contract or
health care service contract, the legislature hereby declares
that provisions providing benefits for the treatment of chemical dependency shall be included in new contracts and that
this section, RCW 48.21.180, 48.21.190, 48.44.240,
48.46.350, and RCW 48.21.195, 48.44.245, and 48.46.355
are necessary for the protection of the public health and
safety. Nothing in this section, RCW 48.21.180, 48.21.190,
48.44.240, 48.46.350, and RCW 48.21.195, 48.44.245, and
48.46.355 shall be construed to relieve any person of any
civil or criminal liability for any act or omission that is the
result of a chemical dependency or to grant any person with a
chemical dependency any special right, privilege, or status
under the law against discrimination, chapter 49.60 RCW.
[1987 c 458 § 13; 1974 ex.s. c 119 § 1.]
Effective date—1987 c 458 §§ 13-20: "Sections 13 through 20 of this
act shall take effect on January 1, 1988." [1987 c 458 § 24.]
Severability—1987 c 458: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1987 c 458 § 25.]
48.21.180
48.21.180 Chemical dependency benefits—Contracts
issued or renewed after January 1, 1988. Each group disability insurance contract which is delivered or issued for
delivery or renewed, on or after January 1, 1988, and which
insures for hospital or medical care must contain provisions
providing benefits for the treatment of chemical dependency
rendered to the insured by a provider which is an "approved
treatment program" under RCW 70.96A.020(3). [2003 c 248
§ 9; 1990 1st ex.s. c 3 § 7; 1987 c 458 § 14; 1974 ex.s. c 119
§ 3.]
Effective date—Severability—1987 c 458: See notes following RCW
48.21.160.
48.21.190
48.21.190 Chemical dependency benefits—RCW
48.21.160 through 48.21.190, 48.44.240 inapplicable,
when. RCW 48.21.160 through 48.21.190 and 48.44.240 as
now or hereafter amended shall not apply to the renewal of a
contract in force prior to the pertinent date provided for such
contract under RCW 48.21.160 through 48.21.190 and
(2004 Ed.)
Group and Blanket Disability Insurance
48.44.240 as now or hereafter amended where there exists a
right of renewal on the part of the insured or subscriber without any change in any provision of the contract: PROVIDED
FURTHER, That RCW 48.21.160 through 48.21.190 and
48.44.240 as now or hereafter amended shall not apply to
contracts which provide only accident coverage, nor to any
contract written as supplemental coverage to any federal or
state programs of health care including, but not limited to,
Title XVIII health insurance for the aged (commonly referred
to as Medicare, Parts A and B), and amendments thereto.
[1975 1st ex.s. c 266 § 10; 1974 ex.s. c 119 § 5.]
Severability—1975 1st ex.s. c 266: See note following RCW
48.01.010.
48.21.195 "Chemical dependency" defined. For the
purposes of RCW 48.21.160 and 48.21.180 "chemical dependency" means an illness characterized by a physiological or
psychological dependency, or both, on a controlled substance
regulated under chapter 69.50 RCW and/or alcoholic beverages. It is further characterized by a frequent or intense pattern of pathological use to the extent the user exhibits a loss
of self-control over the amount and circumstances of use;
develops symptoms of tolerance or physiological and/or psychological withdrawal if use of the controlled substance or
alcoholic beverage is reduced or discontinued; and the user's
health is substantially impaired or endangered or his or her
social or economic function is substantially disrupted. [1987
c 458 § 15.]
48.21.195
48.21.220
operate to reduce total benefits payable below an amount
equal to one hundred percent of total allowable expenses
exclusive of copayments, deductibles, and other similar costsharing arrangements.
(3) The commissioner shall by rule establish guidelines
for the application of this section, including:
(a) The procedures by which persons covered under such
policies, contracts, and agreements are to be made aware of
the existence of such a provision;
(b) The benefits which may be subject to such a provision;
(c) The effect of such a provision on the benefits provided;
(d) Establishment of the order of benefit determination;
(e) Exceptions necessary to preserve policy, contract, or
agreement requirements for use of particular health care
facilities or providers; and
(f) Reasonable claim administration procedures to expedite claim payments and prevent duplication of payments or
benefits under such a provision. [1993 c 492 § 282. Prior:
1983 c 202 § 16; 1983 c 106 § 24; 1975 1st ex.s. c 266 § 20.]
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
Short title—Severability—Savings—Captions not law—Reservation of legislative power—Effective dates—1993 c 492: See RCW
43.72.910 through 43.72.915.
Severability—1975 1st ex.s. c 266: See note following RCW
48.01.010.
48.21.220
Effective date—Severability—1987 c 458: See notes following RCW
48.21.160.
48.21.197 Chemical dependency benefits—Rules. By
September 1, 1987, the insurance commissioner shall adopt
rules governing benefits for treatment of chemical dependency under medical plans issued under chapters 48.21,
48.44, and 48.46 RCW. These rules shall recognize that
many persons are dependent on both alcohol and drugs; they
shall prohibit the stacking of benefits and shall require that
benefits for chemical dependency be equivalent to benefits
previously required for alcoholism. [1987 c 458 § 21.]
48.21.197
Severability—1987 c 458: See note following RCW 48.21.160.
48.21.200 Group disability, health care service contract, health maintenance agreement—Reduction or
refusal of benefits on basis of other existing coverages. (1)
No individual or group disability insurance policy, health
care service contract, or health maintenance agreement which
provides benefits for hospital, medical, or surgical expenses
shall be delivered or issued for delivery in this state which
contains any provision whereby the insurer, contractor, or
health maintenance organization may reduce or refuse to pay
such benefits otherwise payable thereunder solely on account
of the existence of similar benefits provided under any disability insurance policy, health care service contract, or
health maintenance agreement.
(2) No individual or group disability insurance policy,
health care service contract, or health maintenance agreement
providing hospital, medical or surgical expense benefits and
which contains a provision for the reduction of benefits otherwise payable or available thereunder on the basis of other
existing coverages, shall provide that such reduction will
48.21.200
(2004 Ed.)
48.21.220 Home health care, hospice care, optional
coverage required—Standards, limitations, restrictions—Rules—Medicare supplemental contracts
excluded. (1) Every insurer entering into or renewing group
or blanket disability insurance policies governed by this
chapter shall offer optional coverage for home health care
and hospice care for persons who are homebound and would
otherwise require hospitalization. Such optional coverage
need only be offered in conjunction with a policy that provides payment for hospitalization as a part of health care coverage.
(2) Home health care and hospice care coverage offered
under subsection (1) of this section shall conform to the following standards, limitations, and restrictions in addition to
those set forth in chapter 70.126 RCW:
(a) The coverage may include reasonable deductibles,
coinsurance provisions, and internal maximums;
(b) The coverage should be structured to create incentives for the use of home health care and hospice care as an
alternative to hospitalization;
(c) The coverage may contain provisions for utilization
review and quality assurance;
(d) The coverage may require that home health agencies
and hospices have written treatment plans approved by a physician licensed under chapter 18.57 or 18.71 RCW, and may
require such treatment plans to be reviewed at designated
intervals;
(e) The coverage shall provide benefits for, and restrict
benefits to, services rendered by home health and hospice
agencies licensed by the department of social and health services;
(f) Hospice care coverage shall provide benefits for terminally ill patients for an initial period of care of not less than
[Title 48 RCW—page 133]
48.21.225
Title 48 RCW: Insurance
six months and may provide benefits for an additional six
months of care in cases where the patient is facing imminent
death or is entering remission if certified in writing by the
attending physician;
(g) Home health care coverage shall provide benefits for
a minimum of one hundred thirty health care visits per calendar year. However, a visit of any duration by an employee of
a home health agency for the purpose of providing services
under the plan of treatment constitutes one visit;
(h) The coverage may be structured so that services or
supplies included in the primary contract are not duplicated
in the optional home health and hospice coverage.
(3) The insurance commissioner shall adopt any rules
necessary to implement this section.
(4) The requirements of this section shall not apply to
contracts or policies governed by chapter 48.66 RCW.
(5) An insurer, as a condition of reimbursement, may
require compliance with home health and hospice certification regulations established by the United States department
of health and human services. [1988 c 245 § 31; 1984 c 22 §
1; 1983 c 249 § 1.]
Effective date—Implementation—Severability—1988 c 245: See
RCW 70.127.900 and 70.127.902.
Effective date—1984 c 22: "This act shall take effect July 1, 1984."
[1984 c 22 § 8.]
Effective date—1983 c 249: See note following RCW 70.126.001.
Home health care, hospice care, rules: Chapter 70.126 RCW.
48.21.225
48.21.225 Mammograms—Insurance coverage.
Each group disability insurance policy issued or renewed
after January 1, 1990, that provides coverage for hospital or
medical expenses shall provide coverage for screening or
diagnostic mammography services, provided that such services are delivered upon the recommendation of the patient's
physician or advanced registered nurse practitioner as authorized by the nursing care quality assurance commission pursuant to chapter 18.79 RCW or physician assistant pursuant
to chapter 18.71A RCW.
This section shall not be construed to prevent the application of standard policy provisions applicable to other benefits such as deductible or copayment provisions. This section
does not limit the authority of an insurer to negotiate rates
and contract with specific providers for the delivery of mammography services. This section shall not apply to medicare
supplement policies or supplemental contracts covering a
specified disease or other limited benefits. [1994 sp.s. c 9 §
731; 1989 c 338 § 2.]
Severability—Headings and captions not law—Effective date—
1994 sp.s. c 9: See RCW 18.79.900 through 18.79.902.
48.21.230
48.21.230 Reconstructive breast surgery. (1) Each
group disability insurance contract issued or renewed after
July 24, 1983, which insures for hospital or medical care shall
provide coverage for reconstructive breast surgery resulting
from a mastectomy which resulted from disease, illness, or
injury.
(2) Each group disability insurance contract issued or
renewed after January 1, 1986, which insures for hospital or
medical care shall provide coverage for all stages of one
reconstructive breast reduction on the nondiseased breast to
make it equal in size with the diseased breast after definitive
[Title 48 RCW—page 134]
reconstructive surgery on the diseased breast has been performed. [1985 c 54 § 6; 1983 c 113 § 2.]
Effective date—1985 c 54: See note following RCW 48.20.397.
48.21.235
48.21.235 Mastectomy, lumpectomy. No person
engaged in the business of insurance under this chapter may
refuse to issue any contract of insurance or cancel or decline
to renew the contract solely because of a mastectomy or
lumpectomy performed on the insured or prospective insured
more than five years previously. The amount of benefits payable, or any term, rate, condition, or type of coverage shall
not be restricted, modified, excluded, increased, or reduced
solely on the basis of a mastectomy or lumpectomy performed on the insured or prospective insured more than five
years previously. [1985 c 54 § 2.]
Effective date—1985 c 54: See note following RCW 48.20.397.
48.21.240
48.21.240 Mental health treatment, optional supplemental coverage—Waiver. (1) Each group insurer providing disability insurance coverage in this state for hospital or
medical care under contracts which are issued, delivered, or
renewed in this state on or after July 1, 1986, shall offer
optional supplemental coverage for mental health treatment
for the insured and the insured's covered dependents.
(2) Benefits shall be provided under the optional supplemental coverage for mental health treatment whether treatment is rendered by: (a) A physician licensed under chapter
18.71 or 18.57 RCW; (b) a psychologist licensed under chapter 18.83 RCW; (c) a community mental health agency
licensed by the department of social and health services pursuant to chapter 71.24 RCW; or (d) a state hospital as defined
in RCW 72.23.010. The treatment shall be covered at the
usual and customary rates for such treatment. The insurer,
health care service contractor, or health maintenance organization providing optional coverage under the provisions of
this section for mental health services may establish separate
usual and customary rates for services rendered by physicians
licensed under chapter 18.71 or 18.57 RCW, psychologists
licensed under chapter 18.83 RCW, and community mental
health centers licensed under chapter 71.24 RCW and state
hospitals as defined in RCW 72.23.010. However, the treatment may be subject to contract provisions with respect to
reasonable deductible amounts or copayments. In order to
qualify for coverage under this section, a licensed community
mental health agency shall have in effect a plan for quality
assurance and peer review, and the treatment shall be supervised by a physician licensed under chapter 18.71 or 18.57
RCW or by a psychologist licensed under chapter 18.83
RCW.
(3) The group disability insurance contract may provide
that all the coverage for mental health treatment is waived for
all covered members if the contract holder so states in
advance in writing to the insurer.
(4) This section shall not apply to a group disability
insurance contract that has been entered into in accordance
with a collective bargaining agreement between management
and labor representatives prior to March 1, 1987. [1987 c 283
§ 3; 1986 c 184 § 2; 1983 c 35 § 1.]
Severability—Savings—1987 c 283: See notes following RCW
43.20A.020.
(2004 Ed.)
Group and Blanket Disability Insurance
Legislative intent—1986 c 184: "It is the intent of the legislature that
all insurers, health care service contractors, and health maintenance organizations that provide health care coverage in the state shall offer the option of
including mental health treatment in their health benefit plans. Further it is
the intent of the legislature that all mental health care benefit plans shall provide reimbursement for mental health treatment by every type of provider
listed as follows: Physicians licensed under chapter 18.71 or 18.57 RCW,
psychologists licensed under chapter 18.83 RCW, and community mental
health agencies licensed under chapter 71.24 RCW." [1986 c 184 § 1.]
Effective date—1986 c 184: "This act shall take effect March 1, 1987."
[1986 c 184 § 5.]
Severability—1986 c 184: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1986 c 184 § 6.]
Effective date—1983 c 35: "This act is necessary for the immediate
preservation of the public peace, health, and safety, the support of the state
government and its existing public institutions, and shall take effect July 1,
1983." [1983 c 35 § 5.]
Severability—1983 c 35: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1983 c 35 § 4.]
48.21.260
vert to a policy as provided in RCW 48.21.260. [1984 c 190
§ 2.]
Legislative intent—1984 c 190: "The legislature recognizes that when
people covered by a group health insurance policy lose their group insurance
benefits because they are no longer eligible, they need time to obtain a suitable form of replacement coverage or time to complete a reasonable course
of medical treatment for a health condition that existed when the group benefits ended.
Spouses and dependents can lose their group insurance and may not
have any other health insurance when one spouse covered under a group policy dies, obtains a divorce, or becomes unemployed. Often the cost of an
individual policy prevents these persons from obtaining any other health
insurance.
The intent of this act is to require insurers, health care service contractors, and health maintenance organizations to:
(1) Offer to the contract holder the option to continue health and medical benefits for employees, members, spouses, or dependents whose eligibility for coverage under a group policy, contract, or agreement is terminated;
and
(2) Provide a conversion policy, contract, or agreement to employees,
members, spouses, or dependents whose eligibility for coverage under a
group policy, contract, or agreement is terminated." [1984 c 190 § 1.]
Application—1984 c 190 §§ 2, 5, and 8: "Sections 2, 5, and 8 of this
act shall apply to any policy, contract, or agreement issued, renewed, or
amended on or after January 1, 1985." [1984 c 190 § 12.]
48.21.242
48.21.242 Mental health treatment—Waiver of preauthorization for persons involuntarily committed. An
insurer providing group disability insurance coverage for
health care in this state shall waive a preauthorization
requirement from the insurer before an insured or the
insured's covered dependents receive mental health care and
treatment rendered by a state hospital if the insured or any of
the insured's covered dependents are involuntarily committed
to a state hospital as defined in RCW 72.23.010. [1993 c 272
§ 3.]
Savings—Severability—1993 c 272: See notes following RCW
43.20B.347.
48.21.244
48.21.244 Benefits for prenatal diagnosis of congenital disorders—Contracts entered into or renewed on or
after January 1, 1990. On or after January 1, 1990, every
group disability contract entered into or renewed that covers
hospital, medical, or surgical expenses on a group basis, and
which provides benefits for pregnancy, childbirth, or related
medical conditions to enrollees of such groups, shall offer
benefits for prenatal diagnosis of congenital disorders of the
fetus by means of screening and diagnostic procedures during
pregnancy to such enrollees when those services are determined to be medically necessary by the disability contractor
in accord with standards set in rule by the board of health.
Every group disability contractor shall communicate the
availability of such coverage to all group disability contract
holders and to all groups with whom they are negotiating.
[1988 c 276 § 6.]
Prenatal testing—Limitation on changes to coverage: RCW 48.42.090.
48.21.250
48.21.250 Continuation option to be offered. Every
insurer that issues policies providing group coverage for hospital or medical expense shall offer the policyholder an
option to include a policy provision granting a person who
becomes ineligible for coverage under the group policy, the
right to continue the group benefits for a period of time and at
a rate agreed upon. The policy provision shall provide that
when such coverage terminates, the covered person may con(2004 Ed.)
Severability—1984 c 190: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1984 c 190 § 13.]
48.21.260
48.21.260 Conversion policy to be offered—Exceptions, conditions. (1) Except as otherwise provided by this
section, any group disability insurance policy issued,
renewed, or amended on or after January 1, 1985, that provides benefits for hospital or medical expenses shall contain
a provision granting a person covered by the group policy the
right to obtain a conversion policy from the insurer upon termination of the person's eligibility for coverage under the
group policy.
(2) An insurer need not offer a conversion policy to:
(a) A person whose coverage under the group policy
ended when the person's employment or membership was terminated for misconduct: PROVIDED, That when a person's
employment or membership is terminated for misconduct, a
conversion policy shall be offered to the spouse and/or
dependents of the terminated employee or member. The policy shall include in the conversion provisions the same conversion rights and conditions which are available to employees or members and their spouses and/or dependents who are
terminated for reasons other than misconduct;
(b) A person who is eligible for federal Medicare coverage; or
(c) A person who is covered under another group plan,
policy, contract, or agreement providing benefits for hospital
or medical care.
(3) To obtain the conversion policy, a person must submit a written application and the first premium payment for
the conversion policy not later than thirty-one days after the
date the person's group coverage terminates. The conversion
policy shall become effective, without lapse of coverage,
immediately following termination of coverage under the
group policy.
(4) If an insurer or group policyholder does not renew,
cancels, or otherwise terminates the group policy, the insurer
shall offer a conversion policy to any person who was cov[Title 48 RCW—page 135]
48.21.270
Title 48 RCW: Insurance
ered under the terminated policy unless the person is eligible
to obtain group hospital or medical expense coverage within
thirty-one days after such nonrenewal, cancellation, or termination of the group policy.
(5) The insurer shall determine the premium for the conversion policy in accordance with the insurer's table of premium rates applicable to the age and class of risk of each person to be covered under the policy and the type and amount
of benefits provided. [1984 c 190 § 3.]
Legislative intent—Severability—1984 c 190: See notes following
RCW 48.21.250.
48.21.270 Conversion policy—Restrictions and
requirements. (1) An insurer shall not require proof of
insurability as a condition for issuance of the conversion policy.
(2) A conversion policy may not contain an exclusion for
preexisting conditions except to the extent that a waiting
period for a preexisting condition has not been satisfied under
the group policy.
(3) An insurer must offer at least three policy benefit
plans that comply with the following:
(a) A major medical plan with a five thousand dollar
deductible and a lifetime benefit maximum of two hundred
fifty thousand dollars per person;
(b) A comprehensive medical plan with a five hundred
dollar deductible and a lifetime benefit maximum of five
hundred thousand dollars per person; and
(c) A basic medical plan with a one thousand dollar
deductible and a lifetime maximum of seventy-five thousand
dollars per person.
(4) The insurance commissioner may revise the deductibles and lifetime benefit amounts in subsection (3) of this
section from time to time to reflect changing health care
costs.
(5) The insurance commissioner shall adopt rules to
establish minimum benefit standards for conversion policies.
(6) The commissioner shall adopt rules to establish specific standards for conversion policy provisions. These rules
may include but are not limited to:
(a) Terms of renewability;
(b) Nonduplication of coverage;
(c) Benefit limitations, exceptions, and reductions; and
(d) Definitions of terms. [1984 c 190 § 4.]
48.21.270
Legislative intent—Severability—1984 c 190: See notes following
RCW 48.21.250.
48.21.280 Coverage for adopted children. (1) Any
group disability insurance contract, except a blanket disability insurance contract, providing hospital and medical
expenses and health care services, delivered or issued for
delivery in this state, which provides coverage for dependent
children, as defined in the contract of the insured, shall cover
adoptive children placed with the insured on the same basis
as other dependents, as provided in RCW 48.01.180.
(2) If payment of an additional premium is required to
provide coverage for a child, the contract may require that
notification of placement of a child for adoption and payment
of the required premium must be furnished to the insurer. The
notification period shall be no less than sixty days from the
date of placement. [1986 c 140 § 3.]
48.21.280
[Title 48 RCW—page 136]
Effective date, application—Severability—1986 c 140: See notes following RCW 48.01.180.
48.21.290
48.21.290 Cancellation of rider. Upon application by
an insured, a rider shall be canceled if at least five years after
its issuance, no health care services have been received by the
insured during that time for the condition specified in the
rider, and a physician, selected by the carrier for that purpose,
agrees in writing to the full medical recovery of the insured
from that condition, such agreement not to be unreasonably
withheld. The option of the insured to apply for cancellation
shall be disclosed on the face of the rider in clear and conspicuous language.
For purposes of this section, a rider is a legal document
that modifies a contract to exclude, limit, or reduce coverage
or benefits for specifically named or described preexisting
diseases or physical conditions. [1987 c 37 § 2.]
48.21.300
48.21.300 Phenylketonuria. (1) The legislature finds
that:
(a) Phenylketonuria is a rare inherited genetic disorder.
(b) Children with phenylketonuria are unable to metabolize an essential amino acid, phenylalanine, which is found in
the proteins of most food.
(c) To remain healthy, children with phenylketonuria
must maintain a strict diet and ingest a mineral and vitaminenriched formula.
(d) Children who do not maintain their diets with the formula acquire severe mental and physical difficulties.
(e) Originally, the formulas were listed as prescription
drugs but were reclassified as medical foods to increase their
availability.
(2) Subject to requirements and exceptions which may
be established by rules adopted by the commissioner, any
group disability insurance contract delivered or issued for
delivery or renewed in this state on or after September 1,
1988, that insures for hospital or medical expenses shall provide coverage for the formulas necessary for the treatment of
phenylketonuria. [1988 c 173 § 2.]
48.21.310
4 8. 2 1 . 3 1 0 Neu r od e v e lo p men t al t he r a p ie s —
Employer-sponsored group contracts. (1) Each employersponsored group policy for comprehensive health insurance
which is entered into, or renewed, on or after twelve months
after July 23, 1989, shall include coverage for neurodevelopmental therapies for covered individuals age six and under.
(2) Benefits provided under this section shall cover the
services of those authorized to deliver occupational therapy,
speech therapy, and physical therapy. Benefits shall be payable only where the services have been delivered pursuant to
the referral and periodic review of a holder of a license issued
pursuant to chapter 18.71 or 18.57 RCW or where covered
services have been rendered by such licensee. Nothing in this
section shall prohibit an insurer from negotiating rates with
qualified providers.
(3) Benefits provided under this section shall be for medically necessary services as determined by the insurer. Benefits shall be payable for services for the maintenance of an
insured in cases where significant deterioration in the
patient's condition would result without the service. Benefits
shall be payable to restore and improve function.
(2004 Ed.)
Disability Insurance—Extended Health
(4) It is the intent of this section that employers purchasing comprehensive health insurance, including the benefits
required by this section, together with the insurer, retain
authority to design and employ utilization and cost controls.
Therefore, benefits delivered under this section may be subject to contractual provisions regarding deductible amounts
and/or copayments established by the employer purchasing
insurance and the insurer. Benefits provided under this section may be subject to standard waiting periods for preexisting conditions, and may be subject to the submission of written treatment plans.
(5) In recognition of the intent expressed in subsection
(4) of this section, benefits provided under this section may
be subject to contractual provisions establishing annual
and/or lifetime benefit limits. Such limits may define the total
dollar benefits available or may limit the number of services
delivered as agreed by the employer purchasing insurance
and the insurer. [1989 c 345 § 2.]
48.21.320
48.21.320 Temporomandibular joint disorders—
Insurance coverage. (1) Except as provided in this section,
a group disability policy entered into or renewed after
December 31, 1989, shall offer optional coverage for the
treatment of temporomandibular joint disorders.
(a) Insurers offering medical coverage only may limit
benefits in such coverages to medical services related to treatment of temporomandibular joint disorders. Insurers offering
dental coverage only may limit benefits in such coverage to
dental services related to treatment of temporomandibular
joint disorders. No insurer offering medical coverage only
may define all temporomandibular joint disorders as purely
dental in nature, and no insurer offering dental coverage only
may define all temporomandibular joint disorders as purely
medical in nature.
(b) Insurers offering optional temporomandibular joint
disorder coverage as provided in this section may, but are not
required to, offer lesser or no temporomandibular joint disorder coverage as part of their basic group disability contract.
(c) Benefits and coverage offered under this section may
be subject to negotiation to promote broad flexibility in
potential benefit coverage. This flexibility shall apply to services to be reimbursed, determination of treatments to be
considered medically necessary, systems through which services are to be provided, including referral systems and use of
other providers, and related issues.
(2) Unless otherwise directed by law, the insurance commissioner shall adopt rules, to be implemented on January 1,
1993, establishing minimum benefits, terms, definitions, conditions, limitations, and provisions for the use of reasonable
deductibles and copayments.
(3) An insurer need not make the offer of coverage
required by this section to an employer or other group that
offers to its eligible enrollees a self-insured health plan not
subject to mandated benefit statutes under Title 48 RCW that
does not provide coverage for temporomandibular joint disorders. [1989 c 331 § 2.]
Legislative finding—1989 c 331: "The legislature finds that:
(1) Temporomandibular joint disorders are conditions for which treatment often is not covered in medical and dental group insurance contracts;
(2) Individuals with temporomandibular joint disorders experience
substantial pain and financial hardship;
(2004 Ed.)
Chapter 48.21A
(3) Public awareness is needed concerning temporomandibular joint
disorders and would be promoted by a mandated offering of temporomandibular joint disorders coverage to group purchasers; and
(4) A mandated offering of temporomandibular joint disorders coverage shall not prescribe minimum initial benefits so that the insurers and the
purchasers are allowed broad flexibility in benefit design and application."
[1989 c 331 § 1.]
Effective date—1989 c 331: "This act shall take effect January 1, 1990,
but the insurance commissioner may immediately take such steps as are necessary to ensure that this act is fully implemented on its effective date."
[1989 c 331 § 6.]
48.21.325
48.21.325 Prescriptions—Preapproval of individual
claims—Subsequent rejection prohibited—Written
record required. Group disability insurance companies who
through an authorized representative have first approved, by
any means, an individual prescription claim as eligible may
not reject that claim at some later date. Pharmacists or drug
dispensing outlets who obtain preapproval of claims shall
keep a written record of the preapproval that consists of identification by name and telephone number of the person who
approved the claim. [1993 c 253 § 3.]
Findings—Effective date—1993 c 253: See notes following RCW
48.20.525.
48.21.330
48.21.330 Nonresident pharmacies. For the purposes
of this chapter, a nonresident pharmacy is defined as any
pharmacy located outside this state that ships, mails, or delivers, in any manner, except when delivered in person to an
enrolled participant or his/her representative, controlled substances, legend drugs, or devices into this state.
After October 1, 1991, an insurer providing coverage of
prescription drugs from nonresident pharmacies may only
provide coverage from licensed nonresident pharmacies. The
insurers shall obtain proof of current licensure in conformity
with this section and RCW 18.64.350 through 18.64.400
from the nonresident pharmacy and keep that proof of licensure on file.
The department may request from the insurer the proof
of current licensure for all nonresident pharmacies through
which the insurer is providing coverage for prescription
drugs for residents of the state of Washington. This information, which may constitute a full or partial customer list, shall
be confidential and exempt from public disclosure, and from
the requirements of chapter 42.17 RCW. The board or the
department shall not be restricted in the disclosure of the
name of a nonresident pharmacy that is or has been licensed
under RCW 18.64.360 or 18.64.370 or of the identity of a
nonresident pharmacy disciplined under RCW 18.64.350
through 18.64.400. [1991 c 87 § 8.]
Effective date—1991 c 87: See note following RCW 18.64.350.
Chapter 48.21A
Chapter 48.21A RCW
DISABILITY INSURANCE—EXTENDED HEALTH
Sections
48.21A.010 Declaration of purpose.
48.21A.020 Definitions.
48.21A.030 Insurers may join—Policyholder—Reduced benefit provision—Master group policy—Offering—Cancellation.
48.21A.040 Agents, brokers, and solicitors.
48.21A.050 Powers and duties of associations.
[Title 48 RCW—page 137]
48.21A.010
Title 48 RCW: Insurance
48.21A.060 Commissioner's powers—Forms—Rates—Standard provisions—Withdrawal of approval—Federal, state benefits—
Annual reports.
48.21A.070 Documents to be filed—Deceptive name or advertising.
48.21A.080 Remedies.
48.21A.090 Home health care, hospice care, optional coverage required—
Standards, limitations, restrictions—Rules—Medicare supplemental contracts excluded.
Refusal to renew or cancellation of disability insurance: RCW 48.18.298,
48.18.299.
48.21A.010
48.21A.010 Declaration of purpose. It is the purpose
of this chapter to provide a means of more adequately meeting the needs of persons who are sixty-five years of age or
older and their spouses for insurance coverage against financial loss from accident or disease through the combined
resources and experience of a number of insurers; to make
possible the fullest extension of such coverage by encouraging insurers to combine their resources and experience and to
exercise their collective efforts in the development and offering of policies of such insurance to all applicants; and to regulate the joint activities herein authorized in accordance with
the intent of Congress as expressed in the Act of Congress of
March 9, 1945 (Public Law 15, 79th Congress), as amended.
[1965 ex.s. c 70 § 27.]
48.21A.020
48.21A.020 Definitions. Wherever used in this chapter,
the following terms shall have the meanings hereinafter set
forth or indicated, unless the context otherwise requires:
(a) "Association" means a voluntary unincorporated
association of insurers formed for the purpose of enabling
cooperative action to provide disability insurance in accordance with this chapter in this or any other state having legislation enabling the issuance of insurance of the type provided
in this chapter.
(b) "Insurer" means any insurance company which is
authorized to transact disability insurance in this state.
(c) "Extended health insurance" means hospital, surgical
and medical expense insurance provided by a policy issued as
provided by this chapter. [1965 ex.s. c 70 § 28.]
benefits to persons sixty-five years of age and older and their
spouses may also use such a policy provision. A master group
policy issued to an association or to a trustee or any person
appointed by an association for the purpose of providing the
insurances described in this section shall be another form of
group disability insurance.
Any form of policy approved by the commissioner for an
association shall be offered throughout Washington to all
persons sixty-five and older and their spouses, and the coverage of any person insured under such a form of policy shall
not be cancellable except for nonpayment of premiums
unless the coverage of all persons insured under such form of
policy is also canceled. [1965 ex.s. c 70 § 29.]
48.21A.040
48.21A.040 Agents, brokers, and solicitors. Notwithstanding the provisions of RCW 48.17.200, any person
licensed to transact disability insurance as an agent, broker or
solicitor may transact extended health insurance and may be
paid a commission thereon. [1965 ex.s. c 70 § 30.]
48.21A.050
48.21A.050 Powers and duties of associations. Any
association formed for the purposes of this chapter may hold
title to property, may enter into contracts, and may limit the
liability of its members to their respective pro rata shares of
the liability of such association. Any such association may
sue and be sued in its associate name and for such purpose
only shall be treated as a domestic corporation. Service of
process against such association, made upon a managing
agent, any member thereof or any agent authorized by
appointment to receive service of process, shall have the
same force and effect as if such service had been made upon
all members of the association. Such association's books and
records shall also be subject to examination under the provisions of RCW 48.03.010 through 48.03.070, inclusive, either
separately or concurrently with examination of any of its
member insurers. [1983 c 3 § 151; 1965 ex.s. c 70 § 31.]
48.21A.060
48.21A.030
48.21A.030 Insurers may join—Policyholder—
Reduced benefit provision—Master group policy—Offering—Cancellation. Notwithstanding any other provision of
this code or any other law which may be inconsistent herewith, any insurer may join with one or more other insurers, to
plan, develop, underwrite, and offer and provide to any person who is sixty-five years of age or older and to the spouse
of such person, extended health insurance against financial
loss from accident or disease, or both. Such insurance may be
offered, issued and administered jointly by two or more
insurers by a group policy issued to a policyholder through an
association formed for the purpose of offering, selling, issuing and administering such insurance. The policyholder may
be an association, a trustee, or any other person. Any such
policy may provide, among other things, that the benefits
payable thereunder are subject to reduction if the individual
insured has any other coverage providing hospital, surgical or
medical benefits whether on an indemnity basis or a provision of service basis resulting in such insured being eligible
for more than one hundred percent of covered expenses
which he is required to pay, and any insurer issuing individual policies providing extended hospital, surgical or medical
[Title 48 RCW—page 138]
48.21A.060 Commissioner's powers—Forms—
Rates—Standard provisions—Withdrawal of approval—
Federal, state benefits—Annual reports. The forms of the
policies, applications, certificates or other evidence of insurance coverage and applicable premium rates relating thereto
shall be filed with the commissioner. No such policy, contract, or other evidence of insurance, application or other
form shall be sold, issued or used and no endorsement shall
be attached to or printed or stamped thereon unless the form
thereof shall have been approved by the commissioner or
thirty days shall have expired after such filing without written
notice from the commissioner of disapproval thereof. The
commissioner shall disapprove the forms of such insurance if
he finds that they are unjust, unfair, inequitable, misleading
or deceptive or that the rates are by reasonable assumption
excessive in relation to the benefits provided. In determining
whether such rates by reasonable assumptions are excessive
in relation to the benefits provided, the commissioner shall
give due consideration to past and prospective claim experience, within and outside this state, and to fluctuations in such
claim experience, to a reasonable risk charge, to contribution
to surplus and contingency funds, to past and prospective
expenses, both within and outside this state, and to all other
(2004 Ed.)
Disability Insurance—Extended Health
relevant factors within and outside this state including any
differing operating methods of the insurers joining in the
issue of the policy. In exercising the powers conferred upon
him by this chapter, the commissioner shall not be bound by
any other requirement of this code with respect to standard
provisions to be included in disability policies or forms.
The commissioner may, after hearing upon written
notice, withdraw an approval previously given, upon such
grounds as in his opinion would authorize disapproval upon
original submission thereof. Any such withdrawal of
approval after hearing shall be by notice in writing specifying
the ground thereof and shall be effective at the expiration of
such period, not less than ninety days after the giving of
notice of withdrawal, as the commissioner shall in such
notice prescribe.
If and when a program of hospital, surgical and medical
benefits is enacted by the federal government or the state of
Washington, the extended health insurance benefits provided
by policies issued under this chapter shall be adjusted to
avoid any duplication of benefits offered by the federal or
state programs and the premium rates applicable thereto shall
be adjusted to conform with the adjusted benefits.
The association shall submit an annual report to the
insurance commissioner which shall become public information and shall provide information as to the number of persons insured, the names of the insurers participating in the
association with respect to insurance offered under this chapter and the calendar year experience applicable to such insurance offered under this chapter, including premiums earned,
claims paid during the calendar year, the amount of claims
reserve established, administrative expenses, commissions,
promotional expenses, taxes, contingency reserve, other
expenses, and profit and loss for the year. The commissioner
shall require the association to provide any and all information concerning the operations of the association deemed relevant by him for inclusion in the report. [1965 ex.s. c 70 §
32.]
48.21A.070
48.21A.070 Documents to be filed—Deceptive name
or advertising. The articles of association of any association
formed in accordance with this chapter, all amendments and
supplements thereto, a designation in writing of a resident of
this state as agent for the service of process, and a list of
insurers who are members of the association and all supplements thereto shall be filed with the commissioner.
The name of any association or any advertising or promotional material used in connection with extended health
insurance to be sold, offered, or issued, pursuant to this chapter shall not be such as to mislead or deceive the public.
[1965 ex.s. c 70 § 33.]
48.21A.080
48.21A.080 Remedies. No act done, action taken or
agreement made pursuant to the authority conferred by this
chapter shall constitute a violation of or grounds for prosecution or civil proceedings under any other law of this state
heretofore or hereafter enacted which does not specifically
refer to insurance. [1965 ex.s. c 70 § 34.]
48.21A.090
48.21A.090 Home health care, hospice care, optional
coverage required—Standards, limitations, restric(2004 Ed.)
48.21A.090
tions—Rules—Medicare supplemental contracts
excluded. (1) Every insurer entering into or renewing
extended health insurance governed by this chapter shall
offer optional coverage for home health care and hospice care
for persons who are homebound and would otherwise require
hospitalization. Such optional coverage need only be offered
in conjunction with a policy that provides payment for hospitalization as a part of health care coverage.
(2) Home health care and hospice care coverage offered
under subsection (1) of this section shall conform to the following standards, limitations, and restrictions in addition to
those set forth in chapters 70.126 and 70.127 RCW:
(a) The coverage may include reasonable deductibles,
coinsurance provisions, and internal maximums;
(b) The coverage should be structured to create incentives for the use of home health care and hospice care as an
alternative to hospitalization;
(c) The coverage may contain provisions for utilization
review and quality assurance;
(d) The coverage may require that home health agencies
and hospices have written treatment plans approved by a physician licensed under chapter 18.57 or 18.71 RCW, and may
require such treatment plans to be reviewed at designated
intervals;
(e) The coverage shall provide benefits for, and restrict
benefits to, services rendered by home health and hospice
agencies licensed under chapter 70.127 RCW;
(f) Hospice care coverage shall provide benefits for terminally ill patients for an initial period of care of not less than
six months and may provide benefits for an additional six
months of care in cases where the patient is facing imminent
death or is entering remission if certified in writing by the
attending physician;
(g) Home health care coverage shall provide benefits for
a minimum of one hundred thirty health care visits per calendar year. However, a visit of any duration by an employee of
a home health agency for the purpose of providing services
under the plan of treatment constitutes one visit;
(h) The coverage may be structured so that services or
supplies included in the primary contract are not duplicated
in the optional home health and hospice coverage.
(3) The insurance commissioner shall adopt any rules
necessary to implement this section.
(4) The requirements of this section shall not apply to
contracts or policies governed by chapter 48.66 RCW.
(5) An insurer, as a condition of reimbursement, may
require compliance with home health and hospice certification regulations established by the United States department
of health and human services. [1989 1st ex.s. c 9 § 220; 1988
c 245 § 32; 1984 c 22 § 2; 1983 c 249 § 2.]
Effective date—Severability—1989 1st ex.s. c 9: See RCW 43.70.910
and 43.70.920.
Effective date—Implementation—Severability—1988 c 245: See
RCW 70.127.900 and 70.127.902.
Effective date—1984 c 22: See note following RCW 48.21.220.
Effective date—1983 c 249: See note following RCW 70.126.001.
Home health care, hospice care, rules: Chapter 70.126 RCW.
[Title 48 RCW—page 139]
Chapter 48.22
Chapter 48.22
Title 48 RCW: Insurance
Chapter 48.22 RCW
CASUALTY INSURANCE
Sections
48.22.005
48.22.020
48.22.030
48.22.040
48.22.050
48.22.060
48.22.070
48.22.080
48.22.085
48.22.090
48.22.095
48.22.100
48.22.105
48.22.110
48.22.115
48.22.120
48.22.125
48.22.130
48.22.135
48.22.140
Definitions.
Assigned risk plans.
Underinsured, hit-and-run, phantom vehicle coverage to be
provided—Exceptions—Conditions—Deductibles—Information on motorcycle or motor-driven cycle coverage.
Underinsured motor vehicle coverage where liability insurer is
insolvent—Extent of coverage—Rights of insurer upon
making payment.
Market assistance plans.
Debt and financing coverage.
Longshoreman's and harbor worker's compensation coverage—Rules—Plan creation.
Health care liability risk management training program.
Automobile liability insurance policy—Optional coverage for
personal injury protection—Rejection by insured.
Personal injury protection coverage—Exceptions.
Automobile insurance policies—Minimum personal injury
protection coverage.
Automobile insurance policies—Personal injury protection
coverage—Request by named insured—Benefit limits.
Rule making.
Vendor single-interest or collateral protection coverage—Definitions.
Vendor single-interest or collateral protection coverage—
Warning.
Vendor single-interest or collateral protection coverage—
Final notice and warning—No requirement to purchase—
Effective date of coverage.
Vendor single-interest or collateral protection coverage—Cancellation when borrower has obtained insurance—Interest
rate for financing.
Vendor single-interest or collateral protection coverage—Canceled or discontinued—Premium refund.
Vendor single-interest or collateral protection coverage—
Application.
Driver's license suspension for nonpayment of child support—
Exclusion of unlicensed driver from insurance coverage not
applicable—Notation in driving record.
Casualty rates, rating organization: Chapter 48.19 RCW.
Injured public assistance recipient, department has lien, payment to recipient does not discharge lien: RCW 74.09.180, 43.20B.040, and
43.20B.050.
Policy forms, execution, filing, etc.: Chapter 48.18 RCW.
48.22.005
48.22.005 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Automobile" means a passenger car as defined in
RCW 46.04.382 registered or principally garaged in this state
other than:
(a) A farm-type tractor or other self-propelled equipment
designed for use principally off public roads;
(b) A vehicle operated on rails or crawler-treads;
(c) A vehicle located for use as a residence;
(d) A motor home as defined in RCW 46.04.305; or
(e) A moped as defined in RCW 46.04.304.
(2) "Bodily injury" means bodily injury, sickness, or disease, including death at any time resulting from the injury,
sickness, or disease.
(3) "Income continuation benefits" means payments for
the insured's loss of income from work, because of bodily
injury sustained by the insured in an automobile accident,
less income earned during the benefit payment period. The
combined weekly payment an insured may receive under personal injury protection coverage, worker's compensation, disability insurance, or other income continuation benefits may
not exceed eighty-five percent of the insured's weekly
[Title 48 RCW—page 140]
income from work. The benefit payment period begins fourteen days after the date of the automobile accident and ends
at the earliest of the following:
(a) The date on which the insured is reasonably able to
perform the duties of his or her usual occupation;
(b) Fifty-four weeks from the date of the automobile
accident; or
(c) The date of the insured's death.
(4) "Insured automobile" means an automobile described
on the declarations page of the policy.
(5) "Insured" means:
(a) The named insured or a person who is a resident of
the named insured's household and is either related to the
named insured by blood, marriage, or adoption, or is the
named insured's ward, foster child, or stepchild; or
(b) A person who sustains bodily injury caused by accident while: (i) Occupying or using the insured automobile
with the permission of the named insured; or (ii) a pedestrian
accidentally struck by the insured automobile.
(6) "Loss of services benefits" means reimbursement for
payment to others, not members of the insured's household,
for expenses reasonably incurred for services in lieu of those
the insured would usually have performed for his or her
household without compensation, provided the services are
actually rendered. The maximum benefit is forty dollars per
day. Reimbursement for loss of services ends the earliest of
the following:
(a) The date on which the insured person is reasonably
able to perform those services;
(b) Fifty-two weeks from the date of the automobile
accident; or
(c) The date of the insured's death.
(7) "Medical and hospital benefits" means payments for
all reasonable and necessary expenses incurred by or on
behalf of the insured for injuries sustained as a result of an
automobile accident for health care services provided by persons licensed under Title 18 RCW, including pharmaceuticals, prosthetic devices and eye glasses, and necessary ambulance, hospital, and professional nursing service. Medical
and hospital benefits are payable for expenses incurred
within three years from the date of the automobile accident.
(8) "Automobile liability insurance policy" means a policy insuring against loss resulting from liability imposed by
law for bodily injury, death, or property damage suffered by
any person and arising out of the ownership, maintenance, or
use of an insured automobile. An automobile liability policy
does not include:
(a) Vendors single interest or collateral protection coverage;
(b) General liability insurance; or
(c) Excess liability insurance, commonly known as an
umbrella policy, where coverage applies only as excess to an
underlying automobile policy.
(9) "Named insured" means the individual named in the
declarations of the policy and includes his or her spouse if a
resident of the same household.
(10) "Occupying" means in or upon or entering into or
alighting from.
(11) "Pedestrian" means a natural person not occupying
a motor vehicle as defined in RCW 46.04.320.
(2004 Ed.)
Casualty Insurance
(12) "Personal injury protection" means the benefits
described in this section and RCW 48.22.085 through
48.22.100. Payments made under personal injury protection
coverage are limited to the actual amount of loss or expense
incurred. [2003 c 115 § 1; 1993 c 242 § 1.]
Severability—1993 c 242: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1993 c 242 § 7.]
Effective date—1993 c 242: "Sections 1 through 5 of this act shall take
effect July 1, 1994." [1993 c 242 § 8.]
48.22.020
48.22.020 Assigned risk plans. The commissioner
shall after consultation with the insurers licensed to write
motor vehicle liability insurance in this state, approve a reasonable plan or plans for the equitable apportionment among
such insurers of applicants for such insurance who are in
good faith entitled to but are unable to procure insurance
through ordinary methods and, when such plan has been
approved, all such insurers shall subscribe thereto and shall
participate therein. Any applicant for such insurance, any
person insured under such plan and any insurer affected may
appeal to the commissioner from any ruling or decision of the
manager or committee designated to operate such plan.
[1947 c 79 § .22.02; Rem. Supp. 1947 § 45.22.02.]
Rate modifications for assigned risks: RCW 48.19.400.
48.22.030
48.22.030 Underinsured, hit-and-run, phantom vehicle coverage to be provided—Exceptions—Conditions—
Deductibles—Information on motorcycle or motordriven cycle coverage. (1) "Underinsured motor vehicle"
means a motor vehicle with respect to the ownership, maintenance, or use of which either no bodily injury or property
damage liability bond or insurance policy applies at the time
of an accident, or with respect to which the sum of the limits
of liability under all bodily injury or property damage liability bonds and insurance policies applicable to a covered person after an accident is less than the applicable damages
which the covered person is legally entitled to recover.
(2) No new policy or renewal of an existing policy insuring against loss resulting from liability imposed by law for
bodily injury, death, or property damage, suffered by any person arising out of the ownership, maintenance, or use of a
motor vehicle shall be issued with respect to any motor vehicle registered or principally garaged in this state unless coverage is provided therein or supplemental thereto for the protection of persons insured thereunder who are legally entitled
to recover damages from owners or operators of underinsured
motor vehicles, hit-and-run motor vehicles, and phantom
vehicles because of bodily injury, death, or property damage,
resulting therefrom, except while operating or occupying a
motorcycle or motor-driven cycle, and except while operating or occupying a motor vehicle owned or available for the
regular use by the named insured or any family member, and
which is not insured under the liability coverage of the policy. The coverage required to be offered under this chapter is
not applicable to general liability policies, commonly known
as umbrella policies, or other policies which apply only as
excess to the insurance directly applicable to the vehicle
insured.
(2004 Ed.)
48.22.030
(3) Except as to property damage, coverage required
under subsection (2) of this section shall be in the same
amount as the insured's third party liability coverage unless
the insured rejects all or part of the coverage as provided in
subsection (4) of this section. Coverage for property damage
need only be issued in conjunction with coverage for bodily
injury or death. Property damage coverage required under
subsection (2) of this section shall mean physical damage to
the insured motor vehicle unless the policy specifically provides coverage for the contents thereof or other forms of
property damage.
(4) A named insured or spouse may reject, in writing,
underinsured coverage for bodily injury or death, or property
damage, and the requirements of subsections (2) and (3) of
this section shall not apply. If a named insured or spouse has
rejected underinsured coverage, such coverage shall not be
included in any supplemental or renewal policy unless a
named insured or spouse subsequently requests such coverage in writing. The requirement of a written rejection under
this subsection shall apply only to the original issuance of
policies issued after July 24, 1983, and not to any renewal or
replacement policy.
(5) The limit of liability under the policy coverage may
be defined as the maximum limits of liability for all damages
resulting from any one accident regardless of the number of
covered persons, claims made, or vehicles or premiums
shown on the policy, or premiums paid, or vehicles involved
in an accident.
(6) The policy may provide that if an injured person has
other similar insurance available to him under other policies,
the total limits of liability of all coverages shall not exceed
the higher of the applicable limits of the respective coverages.
(7)(a) The policy may provide for a deductible of not
more than three hundred dollars for payment for property
damage when the damage is caused by a hit-and-run driver or
a phantom vehicle.
(b) In all other cases of underinsured property damage
coverage, the policy may provide for a deductible of not more
than one hundred dollars.
(8) For the purposes of this chapter, a "phantom vehicle"
shall mean a motor vehicle which causes bodily injury, death,
or property damage to an insured and has no physical contact
with the insured or the vehicle which the insured is occupying
at the time of the accident if:
(a) The facts of the accident can be corroborated by
competent evidence other than the testimony of the insured or
any person having an underinsured motorist claim resulting
from the accident; and
(b) The accident has been reported to the appropriate law
enforcement agency within seventy-two hours of the accident.
(9) An insurer who elects to write motorcycle or motordriven cycle insurance in this state must provide information
to prospective insureds about the coverage. [2004 c 90 § 1;
1985 c 328 § 1; 1983 c 182 § 1; 1981 c 150 § 1; 1980 c 117 §
1; 1967 c 150 § 27.]
Severability—1983 c 182: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1983 c 182 § 3.]
[Title 48 RCW—page 141]
48.22.040
Title 48 RCW: Insurance
Effective date—1981 c 150: "This act shall take effect on September 1,
1981." [1981 c 150 § 3.]
Effective date—1980 c 117: "This act shall take effect on September 1,
1980." [1980 c 117 § 8.]
48.22.040
48.22.040 Underinsured motor vehicle coverage
where liability insurer is insolvent—Extent of coverage—
Rights of insurer upon making payment. (1) The term
"underinsured motor vehicles" with reference to coverage
offered under any insurance policy regulated under this chapter shall, subject to the terms and conditions of such coverage, be deemed to include an insured motor vehicle where the
liability insurer thereof is unable to make payment with
respect to the legal liability of its insured within the limits
specified therein because of insolvency.
(2) An insurer's insolvency protection shall be applicable
only to accidents occurring during a policy period in which
its insured's underinsured motorist coverage is in effect
where the liability insurer of the tort-feasor becomes insolvent within three years after such an accident. Nothing herein
contained shall be construed to prevent any insurer from
affording insolvency protection under terms and conditions
more favorable to its insureds than is provided hereunder.
(3) In the event of payment to an insured under the coverage required by this chapter and subject to the terms and
conditions of such coverage, the insurer making such payment shall, to the extent thereof, be entitled to the proceeds of
any settlement or judgment resulting from the exercise of any
rights of recovery of such insured against any person or organization legally responsible for the bodily injury, death, or
property damage for which such payment is made, including
the proceeds recoverable from the assets of the insolvent
insurer. Whenever an insurer shall make payment under the
coverage required by this section and which payment is occasioned by an insolvency, such insurer's right of recovery or
reimbursement shall not include any rights against the
insured of said insolvent insurer for any amounts which
would have been paid by the insolvent insurer. Such paying
insurer shall have the right to proceed directly against the
insolvent insurer or its receiver, and in pursuance of such
right such paying insurer shall possess any rights which the
insured of the insolvent company might otherwise have had,
if the insured of the insolvent insurer had personally made the
payment. [1983 c 182 § 2; 1980 c 117 § 2; 1967 ex.s. c 95 §
3.]
Severability—1983 c 182: See note following RCW 48.22.030.
Effective date—1980 c 117: See note following RCW 48.22.030.
48.22.050
48.22.050 Market assistance plans. The commissioner
shall by regulation require insurers authorized to write casualty insurance in this state to form a market assistance plan to
assist persons and other entities unable to purchase casualty
insurance in an adequate amount from either the admitted
market or nonadmitted market.
For the purpose of this section, a market assistance plan
means a voluntary mechanism by insurers writing casualty
insurance in this state in either the admitted or nonadmitted
market to provide casualty insurance for a class of insurance
designated in writing to the plan by the commissioner.
[Title 48 RCW—page 142]
The bylaws and method of operation of any market assistance plan shall be approved by the commissioner prior to its
operation.
A market assistance plan shall have a minimum of
twenty-five insurers willing to insure risks within the class
designated by the commissioner. If twenty-five insurers do
not voluntarily agree to participate, the commissioner may
require casualty insurers to participate in a market assistance
plan as a condition of continuing to do business in this state.
The commissioner shall make such a requirement to fulfill
the quota of at least twenty-five insurers. The commissioner
shall make his or her designation on the basis of the insurer's
premium volume of casualty insurance in this state. [1986 c
305 § 906.]
Preamble—Report to legislature—Applicability—Severability—
1986 c 305: See notes following RCW 4.16.160.
48.22.060
48.22.060 Debt and financing coverage. Every insurer
that writes collision and comprehensive coverage for loss or
damage to "private passenger automobiles" or "motor
homes," as those terms are defined in RCW 48.18.297 and
46.04.305, respectively, shall provide, upon the insured's
request, coverage that will pay, in the event of total loss, an
amount, in excess of the actual cash value of the vehicle, sufficient to satisfy any outstanding indebtedness secured by and
incurred in conjunction with the financing of the purchase of
a new private passenger automobile or motor home.
Nothing in this section prohibits an insurer from denying
or excluding such coverage where the insured or someone
acting on the insured's behalf acts in a fraudulent manner to
obtain or file a claim under such coverage. [1988 c 248 § 16;
1987 c 240 § 1.]
Effective date—1987 c 240: "The effective date of this act is January
1, 1988." [1987 c 240 § 2.]
48.22.070
48.22.070 Longshoreman's and harbor worker's
compensation coverage—Rules—Plan creation. (1) The
commissioner shall adopt rules establishing a reasonable plan
to insure that workers' compensation coverage as required by
the United States longshore and harbor workers' compensation act, 33 U.S.C. Secs. 901 through 950, and maritime
employer's liability coverage incidental to the workers' compensation coverage is available to those unable to purchase it
through the normal insurance market. This plan shall require
the participation of all authorized insurers writing primary or
excess United States longshore and harbor workers' compensation insurance in the state of Washington and the Washington state industrial insurance fund as defined in RCW
51.08.175 which is authorized to participate in the plan and to
make payments in support of the plan in accordance with this
section. Any underwriting losses or surpluses incurred by the
plan shall be determined by the governing committee of the
plan and shall be shared by plan participants in accordance
with the following ratios: The state industrial insurance fund,
fifty percent; and authorized insurers writing primary or
excess United States longshore and harbor workers' compensation insurance, fifty percent.
(2) The Washington state industrial insurance fund may
obtain or provide reinsurance coverage for the plan created
under subsection (1) of this section the terms of which shall
be negotiated between the state fund and the plan. This cov(2004 Ed.)
Casualty Insurance
erage shall not be obtained or provided if the commissioner
determines that the premium to be charged would result in
unaffordable rates for coverage provided by the plan. In considering whether excess of loss coverage premiums would
result in unaffordable rates for workers' compensation coverage provided by the plan, the commissioner shall compare the
resulting plan rates to those provided under any similar pool
or plan of other states.
(3) An applicant for plan insurance, a person insured
under the plan, or an insurer, affected by a ruling or decision
of the manager or committee designated to operate the plan
may appeal to the commissioner for resolution of a dispute.
In adopting rules under this section, the commissioner shall
require that the plan use generally accepted actuarial principles for rate making. [1997 c 110 § 1; 1993 c 177 § 1; 1992
c 209 § 2.]
Effective date—1997 c 110: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[April 21, 1997]." [1997 c 110 § 3.]
Effective date—1993 c 177: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[April 30, 1993]." [1993 c 177 § 4.]
Finding—Declaration—1992 c 209: "The legislature finds and
declares that the continued existence of a strong and healthy maritime industry in this state is threatened by the unavailability and excessive cost of workers' compensation coverage required by the United States longshoreman's
and harbor worker's compensation act. The legislature, therefore, acting
under its authority to protect industry and employment in this state hereby
establishes a commission to devise and implement both a near and long-term
solution to this problem, for the purpose of maintaining employment for
Washington workers and a vigorous maritime industry." [1992 c 209 § 1.]
48.22.080
48.22.080 Health care liability risk management
training program. Effective July 1, 1994, a casualty
insurer's issuance of a new medical malpractice policy or
renewal of an existing medical malpractice policy to a physician or other independent health care practitioner shall be
conditioned upon that practitioner's participation in, and
completion of, an insurer-designed health care liability risk
management training program once every three years. Completion of said training program during 1994 shall satisfy the
first three-year training requirement. The risk management
training shall provide information related to avoiding adverse
health outcomes resulting from substandard practice and
minimizing damages associated with the adverse health outcomes that do occur. For purposes of this section, "independent health care practitioners" means those health care practitioner licensing classifications designated by the department
of health in rule pursuant to *RCW 18.130.330. [1994 c 102
§ 2; 1993 c 492 § 413.]
*Reviser's note: RCW 18.130.330 was repealed by 1995 c 265 § 27,
effective July 1, 1995.
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
Short title—Severability—Savings—Captions not law—Reservation of legislative power—Effective dates—1993 c 492: See RCW
43.72.910 through 43.72.915.
48.22.085
48.22.085 Automobile liability insurance policy—
Optional coverage for personal injury protection—Rejection by insured. (1) No new automobile liability insurance
policy or renewal of such an existing policy may be issued
(2004 Ed.)
48.22.095
unless personal injury protection coverage is offered as an
optional coverage.
(2) A named insured may reject, in writing, personal
injury protection coverage and the requirements of subsection (1) of this section shall not apply. If a named insured
rejects personal injury protection coverage:
(a) That rejection is valid and binding as to all levels of
coverage and on all persons who might have otherwise been
insured under such coverage; and
(b) The insurer is not required to include personal injury
protection coverage in any supplemental, renewal, or replacement policy unless a named insured subsequently requests
such coverage in writing. [2003 c 115 § 2; 1993 c 242 § 2.]
Severability—Effective date—1993 c 242: See notes following RCW
48.22.005.
48.22.090
48.22.090 Personal injury protection coverage—
Exceptions. An insurer is not required to provide personal
injury protection coverage to or on behalf of:
(1) A person who intentionally causes injury to himself
or herself;
(2) A person who is injured while participating in a prearranged or organized racing or speed contest or in practice or
preparation for such a contest;
(3) A person whose bodily injury is due to war, whether
or not declared, or to an act or condition incident to such circumstances;
(4) A person whose bodily injury results from the radioactive, toxic, explosive, or other hazardous properties of
nuclear material;
(5) The named insured or a relative while occupying a
motor vehicle owned by the named insured or furnished for
the named insured's regular use, if such motor vehicle is not
described on the declaration page of the policy under which a
claim is made;
(6) A relative while occupying a motor vehicle owned by
the relative or furnished for the relative's regular use, if such
motor vehicle is not described on the declaration page of the
policy under which a claim is made; or
(7) An insured whose bodily injury results or arises from
the insured's use of an automobile in the commission of a felony. [2003 c 115 § 3; 1993 c 242 § 3.]
Severability—Effective date—1993 c 242: See notes following RCW
48.22.005.
48.22.095
48.22.095 Automobile insurance policies—Minimum
personal injury protection coverage. Insurers providing
automobile insurance policies must offer minimum personal
injury protection coverage for each insured with benefit limits as follows:
(1) Medical and hospital benefits of ten thousand dollars;
(2) A funeral expense benefit of two thousand dollars;
(3) Income continuation benefits of ten thousand dollars,
subject to a limit of two hundred dollars per week; and
(4) Loss of services benefits of five thousand dollars,
subject to a limit of two hundred dollars per week. [2003 c
115 § 4; 1993 c 242 § 4.]
Severability—Effective date—1993 c 242: See notes following RCW
48.22.005.
[Title 48 RCW—page 143]
48.22.100
Title 48 RCW: Insurance
48.22.100 Automobile insurance policies—Personal
injury p rotection co verage— Request by named
insured—Benefit limits. If requested by a named insured,
an insurer providing automobile liability insurance policies
must offer personal injury protection coverage for each
insured with benefit limits as follows:
(1) Medical and hospital benefits of thirty-five thousand
dollars;
(2) A funeral expense benefit of two thousand dollars;
(3) Income continuation benefits of thirty-five thousand
dollars, subject to a limit of seven hundred dollars per week;
and
(4) Loss of services benefits of fourteen thousand six
hundred dollars. [2003 c 115 § 5; 1993 c 242 § 5.]
48.22.100
Severability—Effective date—1993 c 242: See notes following RCW
48.22.005.
48.22.105 Rule making. The commissioner may adopt
such rules as are necessary to implement RCW 48.22.005 and
48.22.085 through 48.22.100. [1993 c 242 § 9.]
48.22.105
Severability—1993 c 242: See note following RCW 48.22.005.
48.22.110
48.22.110 Vendor single-interest or collateral protection coverage—Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this section and RCW 48.22.115 through
48.22.135.
(1) "Borrower" means a person who receives a loan or
enters into a retail installment contract under chapter 63.14
RCW to purchase a motor vehicle or vessel in which the
secured party holds an interest.
(2) "Motor vehicle" means a motor vehicle in this state
subject to registration under chapter 46.16 RCW, except
motor vehicles governed by RCW 46.16.020 or registered
with the Washington utilities and transportation commission
as common or contract carriers.
(3) "Secured party" means a person, corporation, association, partnership, or venture that possesses a bona fide security interest in a motor vehicle or vessel.
(4) "Vendor single-interest" or "collateral protection
coverage" means insurance coverage insuring primarily or
solely the interest of a secured party but which may include
the interest of the borrower in a motor vehicle or vessel serving as collateral and obtained by the secured party or its agent
after the borrower has failed to obtain or maintain insurance
coverage required by the financing agreement for the motor
vehicle or vessel. Vendor single-interest or collateral protection coverage does not include insurance coverage purchased
by a secured party for which the borrower is not charged.
(5) "Vessel" means a vessel as defined in RCW
88.02.010 and includes personal watercraft as defined in
RCW 79A.60.010. [2003 c 248 § 10; 1994 c 186 § 1.]
Effective date—1994 c 186 §§ 1-5: "Sections 1 through 5 of this act
take effect January 1, 1995." [1994 c 186 § 8.]
48.22.115 Vendor single-interest or collateral protection coverage—Warning. In a contract or loan agreement,
or on a separate document accompanying the contract or loan
agreement and signed by the borrower, that provides financing for a motor vehicle or vessel and authorizes a secured
party to purchase vendor single interest or collateral protec48.22.115
[Title 48 RCW—page 144]
tion coverage, the following or substantially similar warning
must be set forth in ten-point print:
WARNING
UNLESS YOU PROVIDE US WITH EVIDENCE
OF THE INSURANCE COVERAGE AS
REQUIRED BY OUR LOAN AGREEMENT, WE
MAY PURCHASE INSURANCE AT YOUR
EXPENSE TO PROTECT OUR INTEREST. THIS
INSURANCE MAY, BUT NEED NOT, ALSO
PROTECT YOUR INTEREST. IF THE COLLATERAL BECOMES DAMAGED, THE COVERAGE WE PURCHASE MAY NOT PAY ANY
CLAIM YOU MAKE OR ANY CLAIM MADE
AGAINST YOU. YOU MAY LATER CANCEL
THIS COVERAGE BY PROVIDING EVIDENCE
THAT YOU HAVE OBTAINED PROPER COVERAGE ELSEWHERE.
YOU ARE RESPONSIBLE FOR THE COST OF
ANY INSURANCE PURCHASED BY US. THE
COST OF THIS INSURANCE MAY BE ADDED
TO YOUR LOAN BALANCE. IF THE COST IS
ADDED TO THE LOAN B ALANCE, THE
INTEREST RATE ON THE UNDERLYING
LOAN WILL APPLY TO THIS ADDED
AMOUNT. THE EFFECTIVE DATE OF COVERAGE MAY BE THE DATE YOUR PRIOR COVERAGE LAPSED OR THE DATE YOU FAILED
TO PROVIDE PROOF OF COVERAGE.
THE COVERAGE WE PURCHASE MAY BE
CONSIDERABLY MORE EXPENSIVE THAN
INSURANCE YOU CAN OBTAIN ON YOUR
OWN AND MAY NOT SATISFY WASHINGTON'S MANDATORY LIABILITY INSURANCE
LAWS.
[1994 c 186 § 2.]
Effective date—1994 c 186 §§ 1-5: See note following RCW
48.22.110.
48.22.120
48.22.120 Vendor single-interest or collateral protection coverage—Final notice and warning—No requirement to purchase—Effective date of coverage. (1) A
secured party shall not impose charges, that may include but
are not limited to interest, finance, and premium charges, on
a borrower for vendor single interest or collateral protection
coverage for the motor vehicle or vessel as provided in subsection (2) of this section until the following or a substantially similar warning printed in ten-point type is sent to the
borrower:
FINAL NOTICE AND WARNING
UNLESS YOU PROVIDE US WITH EVIDENCE
OF THE INSURANCE COVERAGE AS
REQUIRED BY OUR LOAN AGREEMENT
WITHIN FIVE DAYS AFTER THE POSTMARK
ON THIS LETTER, WE WILL PURCHASE
INSURANCE AT YOUR EXPENSE TO PROTECT OUR INTEREST. THIS INSURANCE
MAY, BUT NEED NOT, ALSO PROTECT YOUR
(2004 Ed.)
Casualty Insurance
INTEREST. IF THE COLLATERAL BECOMES
DAMAGED, THE COVERAGE WE PURCHASE
MAY NOT PAY ANY CLAIM YOU MAKE OR
ANY CLAIM MADE AGAINST YOU. YOU
MAY LATER CANCEL THIS COVERAGE BY
PROVIDING EVIDENCE THAT YOU HAVE
OBTA IN ED P R OP E R C OV ER AG E E L SEWHERE OR HAVE PAID OFF THE LOAN ON
THE COLLATERAL IN ITS ENTIRETY.
YOU ARE RESPONSIBLE FOR THE COST OF
THE INSURANCE PURCHASED BY US. THE
COST OF THIS INSURANCE MAY BE ADDED
TO YOUR LOAN BALANCE. IF THE COST IS
ADDED TO THE LOAN B ALANCE, THE
INTEREST RATE ON THE UNDERLYING
LOAN WILL APPLY TO THIS ADDED
AMOUNT. THE EFFECTIVE DATE OF COVERAGE MAY BE THE DATE YOUR COVERAGE
LAPSED OR THE DATE YOU FAILED TO PROVIDE PROOF OF COVERAGE.
THE COVERAGE WE PURCHASE WILL COST
YOU A TOTAL OF APPROXIMATELY $ . . . .
(PLUS INTEREST) AND MAY BE CONSIDERABLY MORE EXPENSIVE THAN INSURANCE
YOU CAN OBTAIN ON YOUR OWN.
The final notice and warning shall identify whether the coverage to be purchased is vendor single interest or collateral
protection coverage and disclose the extent of the borrower's
coverage, if any, including a statement of whether the coverage satisfies Washington's mandatory liability insurance
laws.
(2) If reasonable efforts to provide the borrower with the
notice required under subsection (1) of this section fail to produce evidence of the required insurance, the secured party
may proceed to impose charges for vendor single interest or
collateral protection coverage no sooner than eight days after
giving notice as required under this chapter. Reasonable
efforts to provide notice under this section means:
(a) Within thirty days before the secured party is
required to send the final notice and warning in compliance
with subsection (1) of this section, the secured party shall
mail a notice by first class mail to the borrower's last known
address as contained in the secured party's records. The
notice shall state that the secured party intends to charge the
borrower for vendor single interest or collateral protection
coverage on the collateral if the borrower fails to provide evidence of proper insurance to the lender; and
(b) The secured party shall send the final notice and
warning notice in compliance with subsection (1) of this section by certified mail to the borrower's last known address as
contained in the secured party's records at least eight days
before the insurance is charged to the borrower by the
insurer.
(3) The secured party is responsible for complying with
subsection (2)(a) and (b) of this section. However, a secured
party may seek the services of other entities to fulfill the
requirements of subsection (2)(a) and (b) of this section.
(4) Nothing contained in this chapter, or a secured party's
compliance with or failure to comply with this chapter, shall
(2004 Ed.)
48.22.130
be construed to require the secured party to purchase vendor
single interest or collateral protection coverage, and the
secured party shall not be liable to the borrower or any third
party as a result of its failure to purchase vendor single interest or collateral protection coverage.
(5) Substantial compliance by a secured party with RCW
48.22.110 through 48.22.130 constitutes a complete defense
to any claim arising under the laws of this state challenging
the secured party's placement of vendor single interest or collateral protection coverage.
(6) The effective date of vendor single interest or collateral protection coverage placed under this chapter shall be
either the date that the borrower's prior coverage lapsed or the
date that the borrower failed to provide proof of coverage on
the vehicle or vessel as required under the contract or loan
agreement. Premiums for vendor single interest or collateral
protection coverage placed under this chapter shall be calculated on a basis that does not exceed the outstanding credit
balance as of the effective date of the coverage even though
the coverage may limit liability to the outstanding balance,
actual cash value, or cost of repair.
(7) If the secured party has purchased the contract or loan
agreement relating to the motor vehicle or vessel from the
seller of the motor vehicle or vessel under an agreement that
the seller must repurchase the contract or loan agreement in
the event of a default by the borrower, the secured party shall
send a copy of the notice provided under subsection (2)(a) of
this section by first class mail to the seller at the seller's last
known address on file with the secured party when such
notice is sent to the borrower under subsection (2)(a) of this
section. [1994 c 186 § 3.]
Effective date—1994 c 186 §§ 1-5: See note following RCW
48.22.110.
48.22.125
48.22.125 Vendor single-interest or collateral protection coverage—Cancellation when borrower has obtained
insurance—Interest rate for financing. (1) The secured
party shall cancel vendor single interest or collateral protection coverage charged to the borrower effective the date of
receipt of proper evidence from the borrower that the borrower has obtained insurance to protect the secured party's
interest. Proper evidence includes an insurance binder that is
no older than ninety days from the date of issuance and that
contains physical damage coverage as provided in the borrower's loan agreement with respect to the motor vehicle or
vessel.
(2) If the underlying loan or extension of credit for the
underlying loan is satisfied, the secured party may not require
the borrower to maintain vendor single interest or collateral
protection coverage that has been purchased.
(3) The interest rate for financing the cost of vendor single interest or collateral protection coverage may not exceed
the interest rate applied to the underlying loan obligation.
[1994 c 186 § 4.]
Effective date—1994 c 186 §§ 1-5: See note following RCW
48.22.110.
48.22.130
48.22.130 Vendor single-interest or collateral protection coverage—Canceled or discontinued—Premium
refund. If vendor single interest or collateral protection coverage is canceled or discontinued under RCW 48.22.125 (1)
[Title 48 RCW—page 145]
48.22.135
Title 48 RCW: Insurance
or (2), the amount of unearned premium must be refunded to
the borrower. At the option of the secured party, this refund
may take the form of a credit against the borrower's obligation to the secured party. If the refund is taken as a credit
against the borrower's obligation to the secured party, the
secured party shall provide the borrower with an itemized
statement that indicates the amount of the credit and where
the credit has been applied. [1994 c 186 § 5.]
Effective date—1994 c 186 §§ 1-5: See note following RCW
48.22.110.
48.22.135
48.22.135 Vendor single-interest or collateral protection coverage—Application. The failure of a secured party
prior to January 1, 1995, to provide notice as contemplated in
this chapter, or otherwise to administer a vendor single interest or collateral protection coverage program in a manner
similar to that required under this chapter, shall not be admissible in any court or arbitration proceeding or otherwise used
to prove that a secured party's actions with respect to vendor
single interest or collateral protection coverage or similar
coverage were unlawful or otherwise improper. A secured
party shall not be liable to the borrower or any other party for
placing vendor single interest or collateral protection coverage in accordance with the terms of an otherwise legal loan or
other written agreement with the borrower entered prior to
January 1, 1995. The provisions of this section shall be applicable with respect to actions pending or commenced on or
after June 9, 1994. [1994 c 186 § 7.]
48.22.140
48.22.140 Driver's license suspension for nonpayment of child support—Exclusion of unlicensed driver
from insurance coverage not applicable—Notation in
driving record. In the event that the department of licensing
suspends a driver's license solely for the nonpayment of child
support as provided in chapter 74.20A RCW or for noncompliance with a residential or visitation order as provided in
*chapter 26.09 RCW, any provision in the driver's motor
vehicle liability insurance policy excluding insurance coverage for an unlicensed driver shall not apply to the driver for
ninety days from the date of suspension. When a driver's
license is suspended under chapter 74.20A RCW, the driving
record for the suspended driver shall include a notation that
explains the reason for the suspension. [1997 c 58 § 808.]
*Reviser's note: 1997 c 58 § 887 requiring a court to order certification
of noncompliance with residential provisions of a court-ordered parenting
plan was vetoed. Provisions ordering the department of social and health services to certify a responsible parent based on a court order to certify for noncompliance with residential provisions of a parenting plan were vetoed. See
RCW 74.20A.320.
Short title—Part headings, captions, table of contents not law—
Exemptions and waivers from federal law—Conflict with federal
requirements—Severability—1997 c 58: See RCW 74.08A.900 through
74.08A.904.
Effective dates—Intent—1997 c 58: See notes following RCW
74.20A.320.
48.23.030
48.23.040
48.23.050
48.23.060
48.23.070
48.23.075
48.23.080
48.23.085
48.23.090
48.23.100
48.23.110
48.23.120
48.23.130
48.23.140
48.23.150
48.23.160
48.23.170
48.23.180
48.23.190
48.23.200
48.23.210
48.23.220
48.23.230
48.23.240
48.23.250
48.23.260
48.23.270
48.23.290
48.23.300
48.23.310
48.23.320
48.23.330
48.23.340
48.23.345
48.23.360
48.23.370
48.23.380
48.23.410
48.23.420
48.23.430
48.23.440
48.23.450
48.23.460
48.23.470
48.23.480
48.23.490
48.23.500
48.23.510
48.23.520
Grace period.
Entire contract—Representations.
Incontestability.
Misstatement of age.
Participation in surplus.
Participation in surplus—Requirements for forms.
Policy loan.
Policy loan interest rates.
Table of values and options.
Nonforfeiture options.
Table of installments.
Reinstatement.
Settlement on proof of death.
Standard provisions—Annuities, pure endowment contracts.
Grace period—Annuities, pure endowments.
Incontestability—Annuities, pure endowments.
Entire contract—Annuities, pure endowments.
Misstatement of age or sex—Annuities, pure endowments.
Dividends—Annuities, pure endowments.
Nonforfeiture benefits—Annuities, pure endowments.
Reinstatement—Annuities, pure endowments.
Standard provisions—Reversionary annuities.
Sections applicable.
Reinstatement—Reversionary annuities.
Supplemental benefits.
Limitation of liability.
Incontestability after reinstatement.
Premium deposits.
Policy settlements—Interest.
Deduction of indebtedness.
Miscellaneous proceeds.
Trafficking in dividend rights.
Prohibited policy plans.
Juvenile life insurance—Speculative or fraudulent purposes.
Calculation of nonforfeiture benefits under annuities.
Duties of insurer issuing both participating and nonparticipating policies—Rules.
Return of policy and refund of premium—Grace period—
Notice—Effect.
Short title.
Inapplicability of enumerated sections to certain policies.
Paid-up annuity and cash surrender provisions required.
Minimum nonforfeiture amounts.
Minimum present value of paid-up annuity benefit.
Minimum cash surrender benefits—Death benefit.
Contracts without cash surrender, death benefits—Minimum
present value of paid-up annuity benefits.
Optional maturity dates.
Statement required in contract without cash surrender or death
benefits.
Calculation of benefits available other than on contract anniversary.
Additional benefits.
Operative date of RCW 48.23.410 through 48.23.520.
Assignment of policies: RCW 48.18.360.
Charitable gift annuity business: Chapter 48.38 RCW.
Exemption of proceeds
commutation, annuities: RCW 48.18.430.
life insurance: RCW 48.18.410.
Insurable interest, personal insurance, nonprofit organizations: RCW
48.18.030.
Minor may contract for life or disability insurance: RCW 48.18.020.
Payment to person designated in policy or by assignment discharges
insurer: RCW 48.18.370.
Policy forms, execution, filing, etc.: Chapter 48.18 RCW.
Simultaneous deaths: RCW 48.18.390.
Spouses' rights in life insurance policy: RCW 48.18.440.
48.23.010
Chapter 48.23
Chapter 48.23 RCW
LIFE INSURANCE AND ANNUITIES
Sections
48.23.010
48.23.020
Scope of chapter.
Standard provisions required—Life insurance.
[Title 48 RCW—page 146]
48.23.010 Scope of chapter. The provisions of this
chapter apply to contracts of life insurance and annuities
other than group life insurance, group annuities, and, except
for RCW 48.23.260, 48.23.270, 48.23.340, and *48.23.350,
other than industrial life insurance: PROVIDED, That the
provisions of Title 48 RCW shall not apply to charitable gift
annuities issued by a board of a state university, regional uni(2004 Ed.)
Life Insurance and Annuities
versity, or a state college, nor to the issuance thereof. [1979
c 130 § 2; 1947 c 79 § .23.01; Rem. Supp. 1947 § 45.23.01.]
*Reviser's note: RCW 48.23.350 was repealed by 1982 1st ex.s. c 9 §
36; later enactment, see chapter 48.76 RCW.
Severability—1979 c 130: See note following RCW 28B.10.485.
48.23.020
48.23.020 Standard provisions required—Life insurance. (1) No policy of life insurance other than industrial,
group and pure endowments with or without return of premiums or of premiums and interest, shall be delivered or issued
for delivery in this state unless it contains in substance all of
the provisions required by RCW 48.23.030 to 48.23.130,
inclusive. This provision shall not apply to annuity contracts.
(2) Any of such provisions or portions thereof not applicable to single premium or term policies shall to that extent
not be incorporated therein. [1947 c 79 § .23.02; Rem. Supp.
1947 § 45.23.02.]
48.23.030
48.23.030 Grace period. There shall be a provision that
the insured is entitled to a grace period of one month, but not
less than thirty days, within which the payment of any premium after the first may be made, subject at the option of the
insurer to an interest charge not in excess of six percent per
annum for the number of days of grace elapsing before the
payment of the premium, during which period of grace the
policy shall continue in force, but in case the policy becomes
a claim during the grace period before the overdue premium
is paid, or the deferred premiums of the current policy year, if
any, are paid, the amount of such premium or premiums with
interest thereon may be deducted in any settlement under the
policy. [1947 c 79 § .23.03; Rem. Supp. 1947 § 45.23.03.]
48.23.040
48.23.040 Entire contract—Representations. In all
such policies other than those containing a clause making the
policy incontestable from date of issue, there shall be a provision that the policy and the application therefor, if a copy
thereof has been endorsed upon or attached to the policy at
issue and made a part thereof, shall constitute the entire contract between the parties, and that all statements made by the
applicant or by the insured, shall, in the absence of fraud, be
deemed representations and not warranties. [1947 c 79 §
.23.04; Rem. Supp. 1947 § 45.23.04.]
48.23.050
48.23.050 Incontestability. There shall be a provision
that the policy shall be incontestable after it has been in force
during the lifetime of the insured for a period of two years
from its date of issue, except for nonpayment of premiums
and except, at the option of the insurer, as to provisions relative to benefits in event of total and permanent disability and
as to provisions which grant additional insurance specifically
against accidental death. [1947 c 79 § .23.05; Rem. Supp.
1947 § 45.23.05.]
48.23.060
48.23.060 Misstatement of age. There shall be a provision that if it is found that the age of the insured (or the age of
any other individual considered in determining the premium)
has been misstated, the amount payable under the policy shall
be such as the premium would have purchased at the correct
age or ages, according to the insurer's rate at date of issue.
[1947 c 79 § .23.06; Rem. Supp. 1947 § 45.23.06.]
(2004 Ed.)
48.23.080
48.23.070 Participation in surplus. (1) In all policies
which provide for participation in the insurer's surplus, there
shall be a provision that the policy shall so participate annually in the insurer's divisible surplus as apportioned by the
insurer, beginning not later than the end of the third policy
year. Any policy containing provision for annual participation beginning at the end of the first policy year, may also
provide that each dividend shall be paid subject to the payment of the premiums for the next ensuing year. The insured
under any annual dividend policy shall have the right each
year to have the current dividend arising from such participation either paid in cash, or applied in accordance with such
other dividend option as may be specified in the policy and
elected by the insured. The policy shall further provide which
of the options shall be effective if the insured shall fail to
notify the insurer in writing of his election within the period
of grace allowed for the payment of premium.
(2) This section shall not apply to paid-up nonforfeiture
benefits nor paid-up policies issued on default in payment of
premiums. [1947 c 79 § .23.07; Rem. Supp. 1947 §
45.23.07.]
48.23.070
48.23.075 Participation in surplus—Requirements
for forms. (1) Life insurance and annuity policy forms of the
following types shall be defined and designated as participating forms of insurance only if they contain a provision for
participation in the insurer's surplus, and shall be defined and
designated as nonparticipating forms if they do not contain a
provision for participation in the insurer's surplus:
(a) Forms which provide that the premium or consideration at the time of issue and subsequent premiums or considerations will be established by the insurer based on current, or
then current, projected assumptions for such factors as interest, mortality, persistency, expense, or other factors, subject
to a maximum guaranteed premium or premiums set forth in
the policy; and
(b) Forms (except those for variable life insurance and
variable annuity plans which are subject to chapter 48.18A
RCW) which provide that their premiums or considerations
are credited to an account to which interest is credited, and
from which the cost of any life insurance or annuity benefits
or other benefits or specified expenses are deducted.
(2) The commissioner may by regulation further clarify
the definitions and requirements contained in subsection (1)
of this section, and may classify any other types of forms as
participating or nonparticipating, consistent therewith. [1982
c 181 § 19.]
48.23.075
Severability—1982 c 181: See note following RCW 48.03.010.
48.23.080 Policy loan. (1) There shall be a provision
that after three full years' premiums have been paid thereon,
the insurer at any time, while the policy is in force, will
advance, on proper assignment or pledge of the policy and on
the sole security thereof, at a rate of interest provided in this
chapter as now or hereafter amended, a sum to be determined
as follows:
(a) If such policy is issued prior to the operative date of
*RCW 48.23.350, the sum, including any interest paid in
advance but not beyond the end of the current policy year,
shall be equal to or at the option of the owner of the policy
less than, the reserve at the end of the current policy year on
48.23.080
[Title 48 RCW—page 147]
48.23.085
Title 48 RCW: Insurance
the policy and on any dividend additions thereto, less a sum
not more than two and one-half percent of the amount insured
by the policy and of any dividend additions thereto. The policy may contain a provision by which the insurer reserves the
right to defer the making of the loan, except when made to
pay premiums, for a period not exceeding six months after
the date of application therefor.
(b) If such policy is issued on or after such operative
date, the sum, including any interest to the end of the current
policy year shall not exceed the cash surrender value at the
end of the current policy year, as required by *RCW
48.23.350.
(c)(i) The policy shall contain (A) a provision that policy
loans shall bear interest at a specified rate not exceeding six
percent per annum, or (B) a provision that policy loans shall
bear interest at a variable of not less than four nor more than
eight percent per annum.
(ii) The variable rate shall not be changed more frequently than once per year and no change may exceed one
percent per annum except reductions. The insurer shall give
at least thirty days' notice to the policy owner or the owner's
designee of any changes in the interest rate.
(iii) The provisions of (c)(i) and (c)(ii) of this subsection
shall apply only in policies in existence prior to August 1,
1981.
(2) Such policy shall further provide that the insurer may
deduct from such loan value any existing indebtedness on the
policy (unless such indebtedness has already been deducted
in determining the cash surrender value) and any unpaid balance of the premium for the current policy year; and that if
the loan is made or repaid on a date other than the anniversary
of the policy, the insurer shall be entitled to interest for the
portion of the current policy year at the rate of interest specified in the policy.
(3) Such policy may further provide that if the interest on
the loan is not paid when due, it shall be added to the existing
indebtedness and shall bear interest at the same rate; and that
if and when the total indebtedness on the policy, including
interest due or accruing, equals or exceeds the amount of the
loan value thereof which would otherwise exist at such time,
the policy shall terminate in full settlement of such indebtedness and become void; except, that it shall be stipulated in the
policy that no such termination shall be effective prior to the
expiration of at least thirty days after notice of the pendency
of the termination was mailed by the insurer to the insured
and the assignee, if any, at their respective addresses last of
record with the insurer.
(4) The insurer shall provide in any policy issued on or
after the operative date of *RCW 48.23.350 that the making
of any loan, other than a loan to pay premiums, may be
deferred for not exceeding six months after the application
for the loan has been received by it. [1981 c 247 § 3; 1977
ex.s. c 250 § 1; 1947 c 79 § .23.08; Rem. Supp. 1947 §
45.23.08.]
*Reviser's note: RCW 48.23.350 was repealed by 1982 1st ex.s. c 9 §
36; later enactment, see chapter 48.76 RCW.
Purpose—Effective date—1981 c 247: See notes following RCW
48.23.085.
Construction—1977 ex.s. c 250: "This 1977 amendatory act shall not
impair the terms and conditions of any policy of life insurance in force prior
to the effective date of this 1977 amendatory act." [1977 ex.s. c 250 § 2.]
[Title 48 RCW—page 148]
48.23.085
48.23.085 Policy loan interest rates. (1) As used in
this section, "published monthly average" means:
(a) The "Moody's Corporate Bond Yield Average Monthly Average Corporates" as published by Moody's
Investors Service, Incorporated or any successor thereto; or
(b) If the "Moody's Corporate Bond Yield Average Monthly Average Corporates" is no longer published, a substantially similar average, established by rule issued by the
commissioner.
(2) Policies issued on or after August 1, 1981, shall provide for policy loan interest rates by containing:
(a) A provision permitting a maximum interest rate of
not more than eight percent per annum; or
(b) A provision permitting an adjustable maximum interest rate established from time to time by the life insurer as
permitted by law.
(3) The rate of interest charged on a policy loan made
under (2)(b) of this section shall not exceed the higher of the
following:
(a) The published monthly average for the calendar
month ending two months before the date on which the rate is
determined; or
(b) The rate used to compute the cash surrender values
under the policy during the applicable period plus one percent per annum.
(4) If the maximum rate of interest is determined pursuant to (2)(b) of this section, the policy shall contain a provision setting forth the frequency at which the rate is to be
determined for that policy.
(5) The maximum rate for each policy shall be determined at regular intervals at least once every twelve months,
but not more frequently than once in any three-month period.
At the intervals specified in the policy:
(a) The rate being charged may be increased whenever
such increase as determined under subsection (3) of this section would increase that rate by one-half of one percent or
more per annum; and
(b) The rate being charged shall be reduced whenever
such reduction as determined under subsection (3) of this section would decrease that rate by one-half of one percent or
more per annum.
(6) The life insurer shall:
(a) Notify the policyholder at the time a cash loan is
made of the initial rate of interest on the loan;
(b) Notify the policyholder with respect to premium
loans of the initial rate of interest on the loan as soon as it is
reasonably practical to do so after making the initial loan.
Notice need not be given to the policyholder when a further
premium loan is added, except as provided in (c) of this subsection;
(c) Send to policyholders with loans reasonable advance
notice of any increase in the rate; and
(d) Include in the notices required in this subsection the
substance of the pertinent provisions of subsections (2) and
(4) of this section.
(7) The substance of the pertinent provisions of subsections (2) and (4) of this section shall be set forth in the policies to which they apply.
(8) The loan value of the policy shall be determined in
accordance with RCW 48.23.080, but no policy shall terminate in a policy year as the sole result of change in the interest
(2004 Ed.)
Life Insurance and Annuities
rate during that policy year, and the life insurer shall maintain
coverage during that policy year until the time at which it
would otherwise have terminated if there had been no change
during that policy year.
(9) For purposes of this section:
(a) The rate of interest on policy loans permitted under
this section includes the interest rate charged on reinstatement of policy loans for the period during and after any lapse
of a policy;
(b) The term "policy loan" includes any premium loan
made under a policy to pay one or more premiums that were
not paid to the life insurer as they fell due;
(c) The term "policyholder" includes the owner of the
policy or the person designated to pay premiums as shown on
the records of the life insurer; and
(d) The term "policy" includes certificates issued by a
fraternal benefit society and annuity contracts which provide
for policy loans.
(10) No other provision of law shall apply to policy loan
interest rates unless made specifically applicable to such
rates. [1981 c 247 § 2.]
Purpose—1981 c 247: "The purpose of this act is to permit and set
guidelines for life insurers to include in life insurance policies issued after
the effective date of this act a provision for periodic adjustment of policy
loan interest rates." [1981 c 247 § 1.]
Effective date—1981 c 247: "This act shall take effect August 1, 1981,
and shall not apply to any insurance contract before that date." [1981 c 247
§ 5.]
48.23.090
48.23.090 Table of values and options. There shall be
a table showing in figures the loan value, if any, and any
options available under the policy each year upon default in
premium payments, during at least the first twenty years of
the policy, or for its life if maturity or expiry occurs in less
than twenty years. [1947 c 79 § .23.09; Rem. Supp. 1947 §
45.23.09.]
48.23.100
48.23.100 Nonforfeiture options. There shall be a provision specifying the option to which the policyholder is
automatically entitled in the absence of the election of other
nonforfeiture options upon default in premium payment after
nonforfeiture values become available. [1947 c 79 § .23.10;
Rem. Supp. 1947 § 45.23.10.]
48.23.110
48.23.110 Table of installments. If the policy provides
for payment of its proceeds in installments or as an annuity, a
table showing the amount and period of such installments or
annuity shall be included in the policy. Except, that if in the
judgment of the commissioner it is not practical to include
certain tables in the policy, the requirements of this section
may be met as to such policy by the insurer filing such tables
with the commissioner. [1947 c 79 § .23.11; Rem. Supp.
1947 § 45.23.11.]
48.23.120
48.23.120 Reinstatement. There shall be a provision
that the policy may be reinstated at any time within three
years after the date of default in the payment of any premium,
unless the policy has been surrendered for its cash value, or
the period of any extended insurance provided by the policy
has expired, upon evidence of insurability satisfactory to the
insurer and the payment of all overdue premiums, and pay(2004 Ed.)
48.23.160
ment (or, within the limits permitted by the then cash values
of the policy, reinstatement) of any other indebtedness to the
insurer upon the policy with interest as to premiums at a rate
not exceeding six percent per annum compounded annually.
[1981 c 247 § 4; 1947 c 79 § .23.12; Rem. Supp. 1947 §
45.23.12.]
Purpose—Effective date—1981 c 247: See notes following RCW
48.23.085.
48.23.130
48.23.130 Settlement on proof of death. There shall
be a provision that when a policy becomes a claim by the
death of the insured, settlement shall be made upon receipt of
due proof of death and surrender of the policy. [1947 c 79 §
.23.13; Rem. Supp. 1947 § 45.23.13.]
48.23.140
48.23.140 Standard provisions—Annuities, pure
endowment contracts. No annuity or pure endowment contract, other than reversionary annuities, or survivorship annuities, or group annuities, shall be delivered or issued for delivery in this state unless it contains in substance each of the provisions specified in RCW 48.23.150 to 48.23.210 inclusive.
Any of such provisions not applicable to single premium
annuities or single premium pure endowment contracts shall
not, to that extent, be incorporated therein.
This section shall not apply to contracts for deferred
annuities included in, or upon the lives of beneficiaries under,
life insurance policies. [1947 c 79 § .23.14; Rem. Supp. 1947
§ 45.23.14.]
48.23.150
48.23.150 Grace period—Annuities, pure endowments. In such contracts, there shall be a provision that there
shall be a period of grace of one month, but not less than
thirty days, within which any stipulated payment to the
insurer falling due after the first may be made, subject at the
option of the insurer, to an interest charge thereon at a rate to
be specified in the contract but not exceeding six percent per
annum for the number of days of grace elapsing before such
payment, during which period of grace, the contract shall
continue in full force; but in case a claim arises under the contract on account of death prior to expiration of the period of
grace before the overdue payment to the insurer of the
deferred payments of the current contract year, if any, are
made, the amount of such payments, with interest on any
overdue payments, may be deducted from any amount payable under the contract in settlement. [1947 c 79 § .23.15;
Rem. Supp. 1947 § 45.23.15.]
48.23.160
48.23.160 Incontestability—Annuities, pure endowments. If any statements, other than those relating to age,
sex, and identity, are required as a condition to issuing such
an annuity or pure endowment contract, and subject to RCW
48.23.180, there shall be a provision that the contract shall be
incontestable after it has been in force during the lifetime of
the person or of each of the persons as to whom such statements are required, for a period of two years from its date of
issue, except for nonpayment of stipulated payments to the
insurer; and at the option of the insurer, such contract may
also except any provisions relative to benefits in the event of
total and permanent disability and any provisions which grant
[Title 48 RCW—page 149]
48.23.170
Title 48 RCW: Insurance
insurance specifically against death by accident. [1947 c 79
§ .23.16; Rem. Supp. 1947 § 45.23.16.]
48.23.170
48.23.170 Entire contract—Annuities, pure endowments. In such contracts there shall be a provision that the
contract shall constitute the entire contract between the parties, or, if a copy of the application is endorsed upon or
attached to the contract when issued, a provision that the contract and the application therefor shall constitute the entire
contract between the parties. [1947 c 79 § .23.17; Rem.
Supp. 1947 § 45.23.17.]
48.23.180
48.23.180 Misstatement of age or sex—Annuities,
pure endowments. In such contracts there shall be a provision that if the age or sex of the person or persons upon whose
life or lives the contract is made, or if any of them has been
misstated, the amount payable or benefit accruing under the
contract shall be such as the stipulated payment or payments
to the insurer would have purchased according to the correct
age or sex; and that if the insurer shall make or has made any
underpayment or underpayments or any overpayment or
overpayments on account of any such misstatement, the
amount thereof, with interest at the rate to be specified in the
contract but not exceeding six percent per annum, shall, in the
case of underpayment, be paid the insured or, in the case of
overpayment, may be charged against the current or next succeeding payment or payments to be made by the insurer
under the contract. [1982 c 181 § 12; 1947 c 79 § .23.18;
Rem. Supp. 1947 § 45.23.18.]
Severability—1982 c 181: See note following RCW 48.03.010.
48.23.190
48.23.190 Dividends—Annuities, pure endowments.
If such contract is participating, there shall be a provision that
the insurer shall annually ascertain and apportion any divisible surplus accruing on the contract. [1947 c 79 § .23.19;
Rem. Supp. 1947 § 45.23.19.]
48.23.200
48.23.200 Nonforfeiture benefits—Annuities, pure
endowments. Such contracts issued after the operative date
of RCW 48.23.360 and individual deferred annuities issued
before the operative date of RCW 48.23.420 through
48.23.520 shall contain:
(1) A provision that in the event of default in any stipulated payment, the insurer will grant a paid-up nonforfeiture
benefit on a plan stipulated in the contract, effective as of
such date, of such value as is hereinafter specified.
(2) A statement of the mortality table and interest rate
used in calculating the paid-up nonforfeiture benefit available
under the contract.
(3) An explanation of the manner in which the paid-up
nonforfeiture benefits are altered by the existence of any
paid-up additions credited to the contract or any indebtedness
to the insurer on the contract. [1982 1st ex.s. c 9 § 34; 1979
c 157 § 3; 1947 c 79 § .23.20; Rem. Supp. 1947 § 45.23.20.]
48.23.210
48.23.210 Reinstatement—Annuities, pure endowments. In such contracts there shall be a provision that the
contract may be reinstated at any time within one year from
the date of default in making stipulated payments to the
insurer, unless the cash surrender value has been paid, but all
[Title 48 RCW—page 150]
overdue stipulated payments and any indebtedness to the
insurer on the contract shall be paid or reinstated, with interest thereon at a rate to be specified in the contract but not
exceeding six percent per annum payable annually, and in
cases where applicable, the insurer may also include a
requirement of evidence of insurability satisfactory to the
insurer. [1947 c 79 § .23.21; Rem. Supp. 1947 § 45.23.21.]
48.23.220
48.23.220 Standard provisions—Reversionary annuities. No contract for a reversionary annuity shall be delivered or issued for delivery in this state unless it contains in
substance each of the provisions specified in RCW 48.23.230
and 48.23.240. Any of such provisions not applicable to single premium annuities shall not, to that extent, be incorporated therein.
This section shall not apply to group annuities or to
annuities included in life insurance policies. [1947 c 79 §
.23.22; Rem. Supp. 1947 § 45.23.22.]
48.23.230
48.23.230 Sections applicable. Any such reversionary
annuity contract shall contain the provisions specified in
RCW 48.23.150 to 48.23.190, inclusive, except that under
RCW 48.23.150 the insurer may at its option provide for an
equitable reduction of the amount of the annuity payments in
settlement of an overdue or deferred payment in lieu of providing for a deduction of such payments from an amount payable upon a settlement under the contract. [1947 c 79 §
.23.23; Rem. Supp. 1947 § 45.23.23.]
48.23.240
48.23.240 Reinstatement—Reversionary annuities.
In such reversionary annuity contracts there shall be a provision that the contract may be reinstated at any time within
three years from the date of default in making stipulated payments to the insurer, upon production of evidence of insurability satisfactory to the insurer, and upon condition that all
overdue payments and any indebtedness to the insurer on
account of the contract be paid, or, within the limits permitted
by the then cash values of the contract, reinstated, with interest as to both payments and indebtedness at a rate to be specified in the contract but not exceeding six percent per annum
compounded annually. [1947 c 79 § .23.24; Rem. Supp.
1947 § 45.23.24.]
48.23.250
48.23.250 Supplemental benefits. The commissioner
may make reasonable rules and regulations concerning the
conditions in provisions granting additional benefits in event
of the insured's accidental death, or in event the insured
becomes totally and permanently disabled, which are a part
of or supplemental to life insurance contracts. [1947 c 79 §
.23.25; Rem. Supp. 1947 § 45.23.25.]
48.23.260
48.23.260 Limitation of liability. (1) The insurer may
in any life insurance policy or annuity or pure endowment
contract limit its liability to a determinable amount not less
than the full reserve of the policy and of dividend additions
thereto in event only of death occurring:
(a) As a result of war, or any act of war, declared or
undeclared, or of service in the military, naval or air forces or
in civilian forces auxiliary thereto, or from any cause while a
(2004 Ed.)
Life Insurance and Annuities
member of any such military, naval or air forces of any country at war, declared or undeclared.
(b) As a result of suicide of the insured, whether sane or
insane, within two years from date of issue of the policy.
(c) As a result of aviation under conditions specified in
the policy.
(2) An insurer may specify conditions pertaining to the
items of subsection (1) of this section which in the commissioner's opinion are more favorable to the policyholder.
[1947 c 79 § .23.26; Rem. Supp. 1947 § 45.23.26.]
48.23.270
48.23.270 Incontestability after reinstatement. The
reinstatement of any policy of life insurance or contract of
annuity hereafter delivered or issued for delivery in this state
may be contestable on account of fraud or misrepresentation
of facts material to the reinstatement only for the same period
following reinstatement as the policy provides with respect to
contestability after original issuance. [1947 c 79 § .23.27;
Rem. Supp. 1947 § 45.23.27.]
48.23.290
48.23.290 Premium deposits. (1) A life insurer may,
under such policy provisions or agreements as have been
approved by the commissioner consistent with this section,
contract for and accept premium deposits in addition to the
regular premiums specified in the policy, for the purpose of
paying future premiums, or to facilitate conversion of the policy, or to increase the benefits thereof.
(2) The unused accumulation from such deposits shall be
held and accounted for as a premium deposit fund, and the
policy or agreement shall provide for the manner of application of the premium deposit fund to the payment of premiums
otherwise in default and for the disposition of the fund if it is
not sufficient to pay the next premium.
(3) Such fund shall:
(a) Be available upon surrender of the policy, in addition
to the cash surrender value; and
(b) be payable upon the insured's death or upon maturity
of the policy; and
(c) be paid to the insured whenever the cash surrender
value together with the premium deposit fund equals or
exceeds the amount of insurance provided by the policy,
unless the amount of the deposit does not exceed that which
may be required to facilitate conversion of the policy to
another plan in accordance with its terms.
(4) No part of the premium deposit fund shall be paid to
the insured during the continuance of the policy except at
such times and in such amounts as is specified in the policy or
in the deposit agreement. [1947 c 79 § .23.29; Rem. Supp.
1947 § 45.23.29.]
48.23.300
48.23.300 Policy settlements—Interest. Any life
insurer shall have the power to hold under agreement the proceeds of any policy issued by it, upon such terms and restrictions as to revocation by the policyholder and control by beneficiaries, and with such exemptions from the claims of creditors of beneficiaries other than the policyholder as set forth
in the policy or as agreed to in writing by the insurer and the
policyholder. Upon maturity of a policy in the event the policyholder has made no such agreement, the insurer shall have
the power to hold the proceeds of the policy under an agree(2004 Ed.)
48.23.340
ment with the beneficiaries. The insurer shall not be required
to segregate funds so held but may hold them as part of its
general assets.
An insurer shall pay interest on death benefits payable
under the terms of a life insurance policy insuring the life of
any person who was a resident of this state at the time of
death. Such interest shall accrue commencing on the date of
death at the rate then paid by the insurer on other withdrawable policy proceeds left with the company, but not less than
eight percent. Benefits payable that have not been tendered to
the beneficiary within ninety days of the receipt of proof of
death shall accrue interest, commencing on the ninety-first
day, at the aforementioned rate plus three percent. This section applies to death of insureds that occur on or after September 1, 1985. [1985 c 264 § 23; 1983 1st ex.s. c 32 § 21;
1947 c 79 § .23.30; Rem. Supp. 1947 § 45.23.30.]
48.23.310
48.23.310 Deduction of indebtedness. In determining
the amount due under any life insurance policy heretofore or
hereafter issued, deduction may be made of
(1) any unpaid premiums or installments thereof for the
current policy year due under the terms of the policy, and of
(2) the amount of principal and accrued interest of any
policy loan or other indebtedness against the policy then
remaining unpaid, such principal increased by unpaid interest
and compounded as provided in this chapter. [1947 c 79 §
.23.31; Rem. Supp. 1947 § 45.23.31.]
48.23.320
48.23.320 Miscellaneous proceeds. Upon the death of
the insured and except as is otherwise expressly provided by
the policy or premium deposit agreement, a life insurer may
pay to the surviving spouse, children, beneficiary, or other
person other than the insured's estate, appearing to the insurer
to be equitably entitled thereto, sums held by it and comprising:
(1) Premiums paid in advance, and which premiums did
not fall due prior to such death, or funds held on deposit for
the payment of future premiums.
(2) Dividends theretofore declared on the policy and held
by the insurer under the insured's option.
(3) Dividends becoming payable on or after the death of
the insured. [1947 c 79 § .23.32; Rem. Supp. 1947 §
45.23.32.]
48.23.330
48.23.330 Trafficking in dividend rights. No life
insurer nor any of its representatives, agents, or affiliates,
shall buy, take by assignment other than in connection with
policy loans, or otherwise deal or traffic in any rights to dividends existing under participating life insurance policies
issued by the insurer. [1947 c 79 § .23.33; Rem. Supp. 1947
§ 45.23.33.]
48.23.340
48.23.340 Prohibited policy plans. No life insurer
shall hereafter issue for delivery or deliver in this state any
life insurance policy:
(1) Issued under any plan for the segregation of policyholders into mathematical groups and providing benefits for
a surviving policyholder of a group arising out of the death of
another policyholder of such group, or under any other similar plan.
[Title 48 RCW—page 151]
48.23.345
Title 48 RCW: Insurance
(2) Providing benefits or values for surviving or continuing policyholders contingent upon the lapse or termination of
the policies of other policyholders, whether by death or otherwise. [1947 c 79 § .23.34; Rem. Supp. 1947 § 45.23.34.]
48.23.345 Juvenile life insurance—Speculative or
fraudulent purposes. Life insurers shall develop and implement underwriting standards and procedures designed to
detect and prevent the purchase of juvenile life insurance for
speculative or fraudulent purposes. These standards and procedures shall be made available for review by the commissioner.
Life insurers shall maintain records of underwriting
rejections of applications for life insurance on juvenile lives
for a period of ten years. [2001 c 197 § 1.]
48.23.345
Effective date—2001 c 197: "This act takes effect August 1, 2001."
[2001 c 197 § 2.]
48.23.360 Calculation of nonforfeiture benefits
under annuities. (1) Nonforfeiture benefits: Any paid-up
nonforfeiture benefit available under any annuity or pure
endowment contract pursuant to RCW 48.23.200, in the
event of default in a consideration due on any contract anniversary shall be such that its present value as of such anniversary shall be not less than the excess, if any, of the present
value, on such anniversary, of the future guaranteed benefits
(excluding any total disability benefits attached to such contracts) which would have been provided for by the contract
including any existing paid-up additions, if there had been no
default, over the sum of (a) the then present value of the net
consideration defined in subsection (2) of this section corresponding to considerations which would have fallen due on
and after such anniversary, and (b) the amount of any indebtedness to the company on the contract, including interest due
or accrued. In determining the benefits referred to in this section and in calculating the net consideration referred to in
such subsection (2), in the case of annuity contracts under
which an election may be made to have annuity payments
commence at optional dates, the annuity payments shall be
deemed to commence at the latest date permitted by the contract for the commencement of such payments and the considerations shall be deemed to be payable until such date,
which, however, shall not be later than the contract anniversary nearest the annuitant's seventieth birthday.
(2) Net considerations: The net considerations for any
annuity or pure endowment contract referred to in subsection
(1) of this section shall be calculated on an annual basis, shall
be such that the present value thereof at date of issue of the
annuity shall equal the then present value of the future benefits thereunder (excluding any total disability benefits
attached to such contracts) and shall be not less than the following percentages of the respective considerations specified
in the contracts for the respective contract years:
48.23.360
First year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . fifty percent
Second and subsequent years . . . . . . . . . . . . . .ninety percent
PROVIDED, That in the case of participating annuity contracts the percentages hereinbefore specified may be
decreased by five.
(3) Basis of calculation: All net considerations and
present values for such contracts referred to in this section
[Title 48 RCW—page 152]
shall be calculated on the basis of the 1937 Standard Annuity
Mortality Table or, at the option of the insurer, the Annuity
Mortality Table for 1949, Ultimate, or any modification of
either of these tables approved by the commissioner, and the
rate of interest, not exceeding three and one-half percent per
annum, specified in the contract for calculating cash surrender values, if any, and paid-up nonforfeiture benefits; except
that with respect to annuity and pure endowment contracts
issued on or after the operative date of *RCW
48.12.150(3)(b)(ii) for such contracts, such rate of interest
may be as high as four percent per annum: PROVIDED, That
if such rate of interest exceeds three and one-half percent per
annum, all net considerations and present values for such
contracts referred to in this section shall be calculated on the
1971 Individual Annuity Mortality Table, or any modification of this table approved by the commissioner.
(4) Calculations on default: Any cash surrender value
and any paid-up nonforfeiture benefit, available under any
such contract in the event of default in the payment of any
consideration due at any time other than on the contract anniversary, shall be calculated with allowance for the lapse of
time and the payment of fractional considerations beyond the
last preceding contract anniversary. All values herein
referred to may be calculated upon the assumption that any
death benefit is payable at the end of the contract year of
death.
(5) Deferment of payment: If an insurer provides for the
payment of a cash surrender value, it shall reserve the right to
defer the payment of such value for a period of six months
after demand therefor with surrender of the contract.
(6) Lump sum in lieu: Notwithstanding the requirements
of this section, any deferred annuity contract may provide
that if the annuity allowed under any paid-up nonforfeiture
benefit would be less than one hundred twenty dollars annually, the insurer may at its option grant a cash surrender value
in lieu of such paid-up nonforfeiture benefit of such amount
as may be required by subsection (3) of this section.
(7) Operative date: If no election is made by an insurer
for an operative date prior to July 1, 1948, such date shall be
the operative date for this section. [1973 1st ex.s. c 162 § 6;
1951 c 190 § 1; 1947 c 79 § .23.36; Rem. Supp. 1947 §
45.23.36.]
*Reviser's note: RCW 48.12.150 was repealed by 1982 1st ex.s. c 9 §
36; later enactment, see chapter 48.74 RCW.
48.23.370
48.23.370 Duties of insurer issuing both participating
and nonparticipating policies—Rules. (1) A life insurer
issuing both participating and nonparticipating policies shall
maintain records which segregate the participating from the
nonparticipating business and clearly show the profits and
losses upon each such category of business.
(2) For the purposes of such accounting the insurer shall
make a reasonable allocation as between the respective such
categories of the expenses of such general operations or functions as are jointly shared. Any allocation of expense as
between the respective categories shall be made upon a reasonable basis, to the end that each category shall bear a just
portion of joint expense involved in the administration of the
business of such category.
(3) No policy hereafter delivered or issued for delivery in
this state shall provide for, and no life insurer or representa(2004 Ed.)
Life Insurance and Annuities
tive shall hereafter knowingly offer or promise payment,
credit or distribution of participating "dividends," "earnings,"
"profits," or "savings," by whatever name called, to participating policies out of such profits, earnings or savings on
nonparticipating policies.
(4) The commissioner may promulgate rules for the purpose of assuring the equitable treatment of all policyholders
so that one group of policyholders shall not support or be supported by another group of policyholders. [1982 c 181 § 13;
1965 ex.s. c 70 § 22.]
Severability—1982 c 181: See note following RCW 48.03.010.
48.23.380
48.23.380 Return of policy and refund of premium—
Grace period—Notice—Effect. Every individual life insurance policy issued after September 1, 1977, shall have
printed on its face or attached thereto a notice stating in substance that the policy owner shall be permitted to return the
policy within ten days after it is received by the policy owner
and to have the premium paid refunded if, after examination
of the policy, the policy owner is not satisfied with it for any
reason. An additional ten percent penalty shall be added to
any premium refund due which is not paid within thirty days
of return of the policy to the insurer or agent. If a policy
owner pursuant to such notice, returns the policy to the
insurer at its home or branch office or to the agent through
whom it was purchased, it shall be void from the beginning
and the parties shall be in the same position as if no policy
had been issued.
This section shall not apply to individual life insurance
policies issued in connection with a credit transaction or
issued under a contractual policy change or conversion privilege provision contained in a policy. [1983 1st ex.s. c 32 §
10; 1977 c 60 § 1.]
48.23.410
48.23.410 Short title. RCW 48.23.420 through
48.23.520 shall be known as the standard nonforfeiture law
for individual deferred annuities. [1982 1st ex.s. c 9 § 21.]
48.23.420
48.23.420 Inapplicability of enumerated sections to
certain policies. RCW 48.23.420 through 48.23.520 do not
apply to any reinsurance; group annuity purchased under a
retirement plan or plan of deferred compensation established
or maintained by an employer (including a partnership or sole
proprietorship) or by an employee organization, or by both,
other than a plan providing individual retirement accounts or
individual retirement annuities under Section 408 of the
Internal Revenue Code, as now or hereafter amended; premium deposit fund; variable annuity; investment annuity;
immediate annuity; any deferred annuity contract after annuity payments have commenced; or reversionary annuity; nor
to any contract which is delivered outside this state through
an agent or other representative of the company issuing the
contract. [1982 1st ex.s. c 9 § 22.]
48.23.430
48.23.430 Paid-up annuity and cash surrender provisions required. In the case of contracts issued on or after the
operative date of this section as defined in RCW 48.23.520,
no contract of annuity, except as stated in RCW 48.23.420,
may be delivered or issued for delivery in this state unless it
contains in substance the following provisions, or corre(2004 Ed.)
48.23.440
sponding provisions which in the opinion of the commissioner are at least as favorable to the contract holder, upon
cessation of payment of considerations under the contract:
(1) That upon cessation of payment of considerations
under a contract, or upon the written request of the contract
owner, the company shall grant a paid-up annuity benefit on
a plan stipulated in the contract of such value as is specified
in RCW 48.23.450, 48.23.460, 48.23.470, 48.23.480, and
48.23.500;
(2) If a contract provides for a lump sum settlement at
maturity, or at any other time, that upon surrender of the contract at or before the commencement of any annuity payments, the company shall pay in lieu of any paid-up annuity
benefit a cash surrender benefit of such amount as is specified
in RCW 48.23.450, 48.23.460, 48.23.480, and 48.23.500.
The company may reserve the right to defer the payment of
such cash surrender benefit for a period not to exceed six
months after demand therefor with surrender of the contract
after making written request and receiving written approval
of the commissioner. The request shall address the necessity
and equitability to all policyholders of the deferral;
(3) A statement of the mortality table, if any, and interest
rates used in calculating any minimum paid-up annuity, cash
surrender, or death benefits that are guaranteed under the
contract, together with sufficient information to determine
the amounts of such benefits; and
(4) A statement that any paid-up annuity, cash surrender,
or death benefits that may be available under the contract are
not less than the minimum benefits required by any statute of
the state in which the contract is delivered and an explanation
of the manner in which such benefits are altered by the existence of any additional amounts credited by the company to
the contract, any indebtedness to the company on the contract, or any prior withdrawals from or partial surrenders of
the contract.
Notwithstanding the requirements of this section, any
deferred annuity contract may provide that if no considerations have been received under a contract for a period of two
full years and the portion of the paid-up annuity benefit at
maturity on the plan stipulated in the contract arising from
considerations paid before such period would be less than
twenty dollars monthly, the company may at its option terminate the contract by payment in cash of the then present value
of the portion of the paid-up annuity benefit, calculated on
the basis of the mortality table, if any, and interest rate specified in the contract for determining the paid-up annuity benefit, and by such payment is relieved of any further obligation
under such contract. [2004 c 91 § 1; 1982 1st ex.s. c 9 § 23.]
Effective date—2004 c 91: "This act takes effect July 1, 2004." [2004
c 91 § 3.]
48.23.440
48.23.440 Minimum nonforfeiture amounts. The
minimum values as specified in RCW 48.23.450, 48.23.460,
48.23.470, 48.23.480, and 48.23.500 of any paid-up annuity,
cash surrender, or death benefits available under an annuity
contract shall be based upon minimum nonforfeiture amounts
as defined in this section.
(1) The minimum nonforfeiture amount at any time at or
prior to the commencement of any annuity payments is equal
to an accumulation up to such time at rates of interest as indicated in subsection (2) of this section of the net consider[Title 48 RCW—page 153]
48.23.450
Title 48 RCW: Insurance
ations, as defined in this subsection, paid prior to such time,
decreased by the sum of the following:
(a) Any prior withdrawals from or partial surrenders of
the contract accumulated at rates of interest as indicated in
subsection (2) of this section;
(b) An annual contract charge of fifty dollars, accumulated at rates of interest as indicated in subsection (2) of this
section;
(c) Any premium tax paid by the insurer for the contract,
accumulated at rates of interest as indicated in subsection (2)
of this section; and
(d) The amount of any indebtedness to the company on
the contract, including interest due and accrued.
The net considerations for a given contract year used to
define the minimum nonforfeiture amount shall be an amount
equal to eighty-seven and one-half percent of the gross considerations credited to the contract during that contract year.
(2) The interest rate used in determining minimum nonforfeiture amounts shall be an annual rate of interest determined as the lesser of three percent per annum and the following, which shall be specified in the contract if the interest
rate will be reset:
(a) The five-year constant maturity treasury rate reported
by the federal reserve as of a date certain, or averaged over a
period, rounded to the nearest one-twentieth of one percent,
specified in the contract no longer than fifteen months prior
to the contract issue date or redetermination date under (d) of
this subsection;
(b) Reduced by one hundred twenty-five basis points;
(c) Where the resulting interest rate is not less than one
percent; and
(d) The interest rate shall apply to an initial period and
may be redetermined for additional periods. The redetermination date, basis, and period, if any, shall be stated in the
contract. The basis is the date or average over a specified
period that produces the value of the five-year constant maturity treasury rate to be used at each redetermination date.
(3) During the period or term that a contract provides
substantive participation in an equity indexed benefit, it may
increase the reduction described in subsection (2)(b) of this
section by up to an additional one hundred basis points to
reflect the value of the equity index benefit. The present
value at the contract issue date, and at each redetermination
date thereafter, of the additional reduction may not exceed
the market value of the benefit. The commissioner may
require a demonstration that the present value of the additional reduction does not exceed the market value of the benefit. If a demonstration is not acceptable to the commissioner, the commissioner may disallow or limit the additional
reduction.
(4) The commissioner may adopt rules to implement
subsection (3) of this section and to provide for further
adjustments to the calculation of minimum nonforfeiture
amounts for contracts that provide substantive participation
in an equity index benefit and for other policies that the commissioner determines justify an adjustment.
(5) Before January 1, 2006, an insurer may issue an
annuity policy under this section as in effect on December 31,
2003; or issue an annuity policy under this section as in effect
on July 1, 2004. On or after January 1, 2006, an insurer must
[Title 48 RCW—page 154]
issue an annuity policy under this section as in effect on or
after July 1, 2004. [2004 c 91 § 2; 1982 1st ex.s. c 9 § 24.]
Effective date—2004 c 91: See note following RCW 48.23.430.
48.23.450
48.23.450 Minimum present value of paid-up annuity benefit. Any paid-up annuity benefit available under a
contract shall be such that its present value on the date annuity payments are to commence is at least equal to the minimum nonforfeiture amount on that date. Such present value
shall be computed using the mortality table, if any, and the
interest rate specified in the contract for determining the minimum paid-up annuity benefits guaranteed in the contract.
[1982 1st ex.s. c 9 § 25.]
48.23.460
48.23.460 Minimum cash surrender benefits—Death
benefit. For contracts which provide cash surrender benefits,
such cash surrender benefits available before maturity shall
not be less than the present value as of the date of surrender
of that portion of the maturity value of the paid-up annuity
benefit which would be provided under the contract at maturity arising from considerations paid prior to the time of cash
surrender reduced by the amount appropriate to reflect any
prior withdrawals from or partial surrenders of the contract,
such present value being calculated on the basis of an interest
rate not more than one percent higher than the interest rate
specified in the contract for accumulating the net considerations to determine such maturity value, decreased by the
amount of any indebtedness to the company on the contract,
including interest due and accrued, and increased by any
existing additional amounts credited by the company to the
contract. In no event may any cash surrender benefit be less
than the minimum nonforfeiture amount at that time. The
death benefit under such contracts shall be at least equal to
the cash surrender benefit. [1982 1st ex.s. c 9 § 26.]
48.23.470
48.23.470 Contracts without cash surrender, death
benefits—Minimum present value of paid-up annuity
benefits. For contracts which do not provide cash surrender
benefits, the present value of any paid-up annuity benefit
available as a nonforfeiture option at any time prior to maturity shall not be less than the present value of that portion of
the maturity value of the paid-up annuity benefit provided
under the contract arising from considerations paid before the
time the contract is surrendered in exchange for, or changed
to, a deferred paid-up annuity, such present value being calculated for the period prior to the maturity date on the basis of
the interest rate specified in the contract for accumulating the
net considerations to determine such maturity value, and
increased by any existing additional amounts credited by the
company to the contract. For contracts which do not provide
any death benefits prior to the commencement of any annuity
payments, such present values shall be calculated on the basis
of such interest rate and the mortality table specified in the
contract for determining the maturity value of the paid-up
annuity benefit. However, in no event may the present value
of a paid-up annuity benefit be less than the minimum nonforfeiture amount at that time. [1982 1st ex.s. c 9 § 27.]
48.23.480
48.23.480 Optional maturity dates. For the purpose of
determining the benefits calculated under RCW 48.23.460
(2004 Ed.)
Life Insurance Policy Illustrations
and 48.23.470, in the case of annuity contracts under which
an election may be made to have annuity payments commence at optional maturity dates, the maturity date shall be
deemed to be the latest date for which election is permitted by
the contract, but shall not be deemed to be later than the anniversary of the contract next following the annuitant's seventieth birthday or the tenth anniversary of the contract, whichever is later. [1982 1st ex.s. c 9 § 28.]
48.23.490
48.23.490 Statement required in contract without
cash surrender or death benefits. Any contract which does
not provide cash surrender benefits or does not provide death
benefits at least equal to the minimum nonforfeiture amount
prior to the commencement of any annuity payments shall
include a statement in a prominent place in the contract that
such benefits are not provided. [1982 1st ex.s. c 9 § 29.]
48.23.500
48.23.500 Calculation of benefits available other
than on contract anniversary. Any paid-up annuity, cash
surrender, or death benefits available at any time, other than
on the contract anniversary under any contract with fixed
scheduled considerations, shall be calculated with allowance
for the lapse of time and the payment of any scheduled considerations beyond the beginning of the contract year in
which cessation of payment of considerations under the contract occurs. [1982 1st ex.s. c 9 § 30.]
48.23.510
48.23.510 Additional benefits. For any contract which
provides, within the same contract by rider or supplemental
contract provision, both annuity benefits and life insurance
benefits that are in excess of the greater of cash surrender
benefits or a return of the gross considerations with interest,
the minimum nonforfeiture benefits shall be equal to the sum
of the minimum nonforfeiture benefits for the annuity portion
and the minimum nonforfeiture benefits, if any, for the life
insurance portion computed as if each portion were a separate
contract. Notwithstanding the provisions of RCW 48.23.450,
48.23.460, 48.23.470, 48.23.480, and 48.23.500, additional
benefits payable (1) in the event of total and permanent disability, (2) as reversionary annuity or deferred reversionary
annuity benefits, or (3) as other policy benefits additional to
life insurance, endowment, and annuity benefits, and considerations for all such additional benefits, shall be disregarded
in ascertaining the minimum nonforfeiture amounts, paid-up
annuity, or cash surrender and death benefits that may be
required by RCW 48.23.410 through 48.23.520. The inclusion of such additional benefits shall not be required in any
paid-up benefits, unless such additional benefits separately
would require minimum nonforfeiture amounts, paid-up
annuity, or cash surrender and death benefits. [1982 1st ex.s.
c 9 § 31.]
48.23.520
48.23.520 Operative date of RCW 48.23.410 through
48.23.520. After July 10, 1982, any company may file with
the commissioner a written notice of its election to comply
with the provisions of RCW 48.23.410 through 48.23.520
after a specified date before the second anniversary of July
10, 1982. After the filing of such notice, then upon such specified date, which shall be the operative date of RCW
48.23.410 through 48.23.520 for such company, RCW
(2004 Ed.)
48.23A.015
48.23.410 through 48.23.520 shall become operative with
respect to annuity contracts thereafter issued by such company. If a company makes no such election, the operative
date of RCW 48.23.410 through 48.23.520 for such company
shall be the second anniversary of July 10, 1982. [1982 1st
ex.s. c 9 § 32.]
Chapter 48.23A RCW
LIFE INSURANCE POLICY ILLUSTRATIONS
Chapter 48.23A
Sections
48.23A.005
48.23A.010
48.23A.015
48.23A.020
48.23A.030
48.23A.040
48.23A.050
48.23A.060
48.23A.070
48.23A.080
48.23A.090
48.23A.900
48.23A.901
Purpose—Standards for life insurance policy illustrations.
Scope of chapter—Exceptions.
Definitions.
Marketing with or without an illustration—Notice to commissioner—Conditions—Availability.
Illustration used in sale—Label—Required basic information—Prohibitions—Use of interest rate.
Basic illustration—Conforming requirements—Brief descriptions—Numeric summaries—Required statements.
Supplemental illustration—Conditions for use—Reference to
basic illustration.
Illustration used or not used during sale—Signed copy of illustration or acknowledgment of no use—Computer screen—
Retained copies.
Policy designated for use of illustrations—Annual report—
Required information—In-force illustrations—Notice of
adverse changes.
Illustration actuaries—Conditions for appointment—Duties—
Certifications—Disclosures to commissioner.
Violations—RCW 48.30.010(1).
Severability—1997 c 313.
Effective date—Application—1997 c 313.
48.23A.005
48.23A.005 Purpose—Standards for life insurance
policy illustrations. The purpose of this chapter is to provide standards for life insurance policy illustrations that will
protect consumers and foster consumer education by providing illustration formats, prescribing standards to be followed
when illustrations are used, and specifying the disclosures
that are required in connection with illustrations. The goals of
these standards are to ensure that illustrations do not mislead
purchasers of life insurance and to make illustrations more
understandable. Insurers will, as far as possible, eliminate the
use of footnotes and caveates and define terms used in the
illustration in language that would be understood by a typical
person within the segment of the public to which the illustration is directed. [1997 c 313 § 1.]
48.23A.010
48.23A.010 Scope of chapter—Exceptions. This
chapter applies to all group and individual life insurance policies and certificates except:
(1) Variable life insurance;
(2) Individual and group annuity contracts;
(3) Credit life insurance; or
(4) Life insurance policies with no illustrated death benefits on any individual exceeding ten thousand dollars. [1997
c 313 § 2.]
48.23A.015
48.23A.015 Definitions. The definitions in this section
apply throughout this chapter unless the context requires otherwise.
(1) "Actuarial standards board" means the board established by the American academy of actuaries to develop and
adopt standards of actuarial practice.
[Title 48 RCW—page 155]
48.23A.020
Title 48 RCW: Insurance
(2) "Contract premium" means the gross premium that is
required to be paid under a fixed premium policy, including
the premium for a rider for which benefits are shown in the
illustration.
(3) "Currently payable scale" means a scale of nonguaranteed elements in effect for a policy form as of the preparation date of the illustration or declared to become effective
within the next ninety-five days.
(4) "Disciplined current scale" means a scale of nonguaranteed elements constituting a limit on illustrations currently
being illustrated by an insurer that is reasonably based on
actual recent historical experience, as certified annually by an
illustration actuary designated by the insurer. Further guidance in determining the disciplined current scale as contained
in standards established by the actuarial standards board may
be relied upon if the standards:
(a) Are consistent with all provisions of this chapter;
(b) Limit a disciplined current scale to reflect only
actions that have already been taken or events that have
already occurred;
(c) Do not permit a disciplined current scale to include
any projected trends of improvements in experience or any
assumed improvements in experience beyond the illustration
date; and
(d) Do not permit assumed expenses to be less than minimum assumed expenses.
(5) "Generic name" means a short title descriptive of the
policy being illustrated, such as whole life, term life, or flexible premium adjustable life.
(6) "Guaranteed elements" means the premiums, benefits, values, credits, or charges under a policy of life insurance that are guaranteed and determined at issue.
(7) "Nonguaranteed elements" means the premiums,
benefits, values, credits, or charges under a policy of life
insurance that are not guaranteed or not determined at issue.
(8) "Illustrated scale" means a scale of nonguaranteed
elements currently being illustrated that is not more favorable
to the policy owner than the lesser of:
(a) The disciplined current scale; or
(b) The currently payable scale.
(9) "Illustration" means a presentation or depiction that
includes nonguaranteed elements of a policy of life insurance
over a period of years and that is one of the three types
defined below:
(a) "Basic illustration" means a ledger or proposal used
in the sale of a life insurance policy that shows both guaranteed and nonguaranteed elements.
(b) "Supplemental illustration" means an illustration furnished in addition to a basic illustration that meets the applicable requirements of this chapter, and that may be presented
in a format differing from the basic illustration, but may only
depict a scale of nonguaranteed elements that is permitted in
a basic illustration.
(c) "In-force illustration" means an illustration furnished
at any time after the policy that it depicts has been in force for
one year or more.
(10) "Illustration actuary" means an actuary meeting the
requirements of RCW 48.23A.080 who certifies to illustrations based on the standard of practice adopted by the actuarial standards board.
[Title 48 RCW—page 156]
(11) "Lapse-supported illustration" means an illustration
of a policy form failing the test of self-supporting, as defined
in this section, under a modified persistency rate assumption
using persistency rates underlying the disciplined current
scale for the first five years and one hundred percent policy
persistency thereafter.
(a) "Minimum assumed expenses" means the minimum
expenses that may be used in the calculation of the disciplined current scale for a policy form. The insurer may
choose to designate each year the method of determining
assumed expenses for all policy forms from the following:
(i) Fully allocated expenses;
(ii) Marginal expenses; and
(iii) A generally recognized expense table based on fully
allocated expenses representing a significant portion of insurance companies and approved by the national association of
insurance commissioners.
(b) Marginal expenses may be used only if greater than a
generally recognized expense table. If no generally recognized expense table is approved, fully allocated expenses
must be used.
(12) "Nonterm group life" means a group policy or individual policies of life insurance issued to members of an
employer group or other permitted group where:
(a) Every plan of coverage was selected by the employer
or other group representative;
(b) Some portion of the premium is paid by the group or
through payroll deduction; and
(c) Group underwriting or simplified underwriting is
used.
(13) "Policy owner" means the owner named in the policy or the certificate holder in the case of a group policy.
(14) "Premium outlay" means the amount of premium
assumed to be paid by the policy owner or other premium
payer out-of-pocket.
(15) "Self-supporting illustration" means an illustration
of a policy form for which it can be demonstrated that, when
using experience assumptions underlying the disciplined current scale, for all illustrated points in time on or after the fifteenth policy anniversary or the twentieth policy anniversary
for second-or-later-to-die policies, or upon policy expiration
if sooner, the accumulated value of all policy cash flows
equals or exceeds the total policy owner value available. For
this purpose, policy owner value will include cash surrender
values and any other illustrated benefit amounts available at
the policy owner's election. [1997 c 313 § 3.]
48.23A.020
48.23A.020 Marketing with or without an illustration—Notice to commissioner—Conditions—Availability. (1) Each insurer marketing policies to which this chapter
is applicable shall notify the commissioner whether a policy
form is to be marketed with or without an illustration. For all
policy forms being actively marketed on January 1, 1998, the
insurer shall identify in writing those forms and whether or
not an illustration will be used with them. For policy forms
filed after January 1, 1998, the identification shall be made at
the time of filing. Any previous identification may be
changed by notice to the commissioner.
(2) If the insurer identifies a policy form as one to be
marketed without an illustration, any use of an illustration for
(2004 Ed.)
Life Insurance Policy Illustrations
any policy using that form prior to the first policy anniversary
is prohibited.
(3) If a policy form is identified by the insurer as one to
be marketed with an illustration, a basic illustration prepared
and delivered in accordance with this chapter is required,
except that a basic illustration need not be provided to individual members of a group or to individuals insured under
multiple lives coverage issued to a single applicant unless the
coverage is marketed to these individuals. The illustration
furnished an applicant for a group life insurance policy or
policies issued to a single applicant on multiple lives may be
either an individual or composite illustration representative
of the coverage on the lives of members of the group or the
multiple lives covered.
(4) Potential enrollees of nonterm group life subject to
this chapter shall be furnished a quotation with the enrollment materials. The quotation shall show potential policy
values for sample ages and policy years on a guaranteed and
nonguaranteed basis appropriate to the group and the coverage. This quotation is not considered an illustration for purposes of this chapter, but all information provided shall be
consistent with the illustrated scale. A basic illustration shall
be provided at delivery of the certificate to enrollees for nonterm group life who enroll for more than the minimum premium necessary to provide pure death benefit protection. In
addition, the insurer shall make a basic illustration available
to any nonterm group life enrollee who requests it. [1997 c
313 § 4.]
48.23A.030 Illustration used in sale—Label—
Required basic information—Prohibitions—Use of interest rate. (1) An illustration used in the sale of a life insurance
policy shall satisfy the applicable requirements of this chapter, be clearly labeled "life insurance illustration," and contain the following basic information:
(a) Name of insurer;
(b) Name and business address of producer or insurer's
authorized representative, if any;
(c) Name, age, and sex of proposed insured, except
where a composite illustration is permitted under this chapter;
(d) Underwriting or rating classification upon which the
illustration is based;
(e) Generic name of policy, the company product name,
if different, and form number;
(f) Initial death benefit; and
(g) Dividend option election or application of nonguaranteed elements, if applicable.
(2) When using an illustration in the sale of a life insurance policy, an insurer or its producers or other authorized
representatives shall not:
(a) Represent the policy as anything other than life insurance policy;
(b) Use or describe nonguaranteed elements in a manner
that is misleading or has the capacity or tendency to mislead;
(c) State or imply that the payment or amount of nonguaranteed elements is guaranteed;
(d) Use an illustration that does not comply with the
requirements of this chapter;
(e) Use an illustration that at any policy duration depicts
policy performance more favorable to the policy owner than
48.23A.030
(2004 Ed.)
48.23A.040
that produced by the illustrated scale of the insurer whose
policy is being illustrated;
(f) Provide an applicant with an incomplete illustration;
(g) Represent in any way that premium payments will
not be required for each year of the policy in order to maintain the illustrated death benefits, unless that is the fact;
(h) Use the term "vanish" or "vanishing premium," or a
similar term that implies the policy becomes paid up, to
describe a plan for using nonguaranteed elements to pay a
portion of future premiums;
(i) Except for policies that can never develop nonforfeiture values, use an illustration that is "lapse-supported"; or
(j) Use an illustration that is not "self-supporting."
(3) If an interest rate used to determine the illustrated
nonguaranteed elements is shown, it shall not be greater than
the earned interest rate underlying the disciplined current
scale. [1997 c 313 § 5.]
48.23A.040
48.23A.040 Basic illustration—Conforming requirements—Brief descriptions—Numeric summaries—
Required statements. (1) A basic illustration shall conform
with the following requirements:
(a) The illustration shall be labeled with the date on
which it was prepared.
(b) Each page, including any explanatory notes or pages,
shall be numbered and show its relationship to the total number of pages in the illustration (for example, the fourth page
of a seven-page illustration shall be labeled "page 4 of 7
pages").
(c) The assumed dates of payment receipt and benefit
payout within a policy year shall be clearly identified.
(d) If the age of the proposed insured is shown as a component of the tabular detail, it shall be issue age plus the numbers of years the policy is assumed to have been in force.
(e) The assumed payments on which the illustrated benefits and values are based shall be identified as premium outlay or contract premium, as applicable. For policies that do
not require a specific contract premium, the illustrated payments shall be identified as premium outlay.
(f) Guaranteed death benefits and values available upon
surrender, if any, for the illustrated premium outlay or contract premium shall be shown and clearly labeled guaranteed.
(g) If the illustration shows any nonguaranteed elements,
they cannot be based on a scale more favorable to the policy
owner than the insurer's illustrated scale at any duration.
These elements shall be clearly labeled nonguaranteed.
(h) The guaranteed elements, if any, shall be shown
before corresponding nonguaranteed elements and shall be
specifically referred to on any page of an illustration that
shows or describes only the nonguaranteed elements (for
example, "see page one for guaranteed elements").
(i) The account or accumulation value of a policy, if
shown, shall be identified by the name this value is given in
the policy being illustrated and shown in close proximity to
the corresponding value available upon surrender.
(j) The value available upon surrender shall be identified
by the name this value is given in the policy being illustrated
and shall be the amount available to the policy owner in a
lump sum after deduction of surrender charges, policy loans,
and policy loan interest, as applicable.
[Title 48 RCW—page 157]
48.23A.050
Title 48 RCW: Insurance
(k) Illustrations may show policy benefits and values in
graphic or chart form in addition to the tabular form.
(l) Any illustration of nonguaranteed elements shall be
accompanied by a statement indicating that:
(i) The benefits and values are not guaranteed;
(ii) The assumptions on which they are based are subject
to change by the insurer; and
(iii) Actual results may be more or less favorable.
(m) If the illustration shows that the premium payer may
have the option to allow policy charges to be paid using nonguaranteed values, the illustration must clearly disclose that a
charge continues to be required and that, depending on actual
results, the premium payer may need to continue or resume
premium outlays. Similar disclosure shall be made for premium outlay of lesser amounts or shorter durations than the
contract premium. If a contract premium is due, the premium
outlay display shall not be left blank or show zero unless
accompanied by an asterisk or similar mark to draw attention
to the fact that the policy is not paid up.
(n) If the applicant plans to use dividends or policy values, guaranteed or nonguaranteed, to pay all or a portion of
the contract premium or policy charges, or for any other purpose, the illustration may reflect those plans and the impact
on future policy benefits and values.
(2) A basic illustration shall include the following:
(a) A brief description of the policy being illustrated,
including a statement that it is a life insurance policy;
(b) A brief description of the premium outlay or contract
premium, as applicable, for the policy. For a policy that does
not require payment of a specific contract premium, the illustration shall show the premium outlay that must be paid to
guarantee coverage for the term of the contract, subject to
maximum premiums allowable to qualify as a life insurance
policy under the applicable provisions of the internal revenue
code;
(c) A brief description of any policy features, riders, or
options, guaranteed or nonguaranteed, shown in the basic
illustration and the impact they may have on the benefits and
values of the policy;
(d) Identification and a brief definition of column headings and key terms used in the illustration; and
(e) A statement containing in substance the following:
"This illustration assumes that the currently illustrated, nonguaranteed elements will continue unchanged for all years
shown. This is not likely to occur, and actual results may be
more or less favorable than those shown."
(3)(a) Following the narrative summary, a basic illustration shall include a numeric summary of the death benefits
and values and the premium outlay and contract premium, as
applicable. For a policy that provides for a contract premium,
the guaranteed death benefits and values shall be based on the
contract premium. This summary shall be shown for at least
policy years five, ten, and twenty and at age seventy, if applicable, on the three bases shown below. For multiple life policies the summary shall show policy years five, ten, twenty,
and thirty.
(i) Policy guarantees;
(ii) Insurer's illustrated scale;
(iii) Insurer's illustrated scale used but with the nonguaranteed elements reduced as follows:
[Title 48 RCW—page 158]
(A) Dividends at fifty percent of the dividends contained
in the illustrated scale used;
(B) Nonguaranteed credited interest at rates that are the
average of the guaranteed rates and the rates contained in the
illustrated scale used; and
(C) All nonguaranteed charges, including but not limited
to, term insurance charges and mortality and expense
charges, at rates that are the average of the guaranteed rates
and the rates contained in the illustrated scale used.
(b) In addition, if coverage would cease prior to policy
maturity or age one hundred, the year in which coverage
ceases shall be identified for each of the three bases.
(4) Statements substantially similar to the following
shall be included on the same page as the numeric summary
and signed by the applicant, or the policy owner in the case of
an illustration provided at time of delivery, as required in this
chapter.
(a) A statement to be signed and dated by the applicant or
policy owner reading as follows: "I have received a copy of
this illustration and understand that any nonguaranteed elements illustrated are subject to change and could be either
higher or lower. The agent has told me they are not guaranteed."
(b) A statement to be signed and dated by the insurance
producer or other authorized representative of the insurer
reading as follows: "I certify that this illustration has been
presented to the applicant and that I have explained that any
nonguaranteed elements illustrated are subject to change. I
have made no statements that are inconsistent with the illustration."
(5)(a) A basic illustration shall include the following for
at least each policy year from one to ten and for every fifth
policy year thereafter ending at age one hundred, policy
maturity, or final expiration; and except for term insurance
beyond the twentieth year, for any year in which the premium
outlay and contract premium, if applicable, is to change:
(i) The premium outlay and mode the applicant plans to
pay and the contract premium, as applicable;
(ii) The corresponding guaranteed death benefit, as provided in the policy; and
(iii) The corresponding guaranteed value available upon
surrender, as provided in the policy.
(b) For a policy that provides for a contract premium, the
guaranteed death benefit and value available upon surrender
shall correspond to the contract premium.
(c) Nonguaranteed elements may be shown if described
in the contract. In the case of an illustration for a policy on
which the insurer intends to credit terminal dividends, they
may be shown if the insurer's current practice is to pay terminal dividends. If any nonguaranteed elements are shown, they
must be shown at the same durations as the corresponding
guaranteed elements, if any. If no guaranteed benefit or value
is available at any duration for which a nonguaranteed benefit
or value is shown, a zero shall be displayed in the guaranteed
column. [1997 c 313 § 6.]
48.23A.050 Supplemental illustration—Conditions
for use—Reference to basic illustration. (1) A supplemental illustration may be provided so long as:
(a) It is appended to, accompanied by, or preceded by a
basic illustration that complies with this chapter;
48.23A.050
(2004 Ed.)
Life Insurance Policy Illustrations
(b) The nonguaranteed elements shown are not more
favorable to the policy owner than the corresponding elements based on the scale used in the basic illustration;
(c) It contains the same statement required of a basic
illustration that nonguaranteed elements are not guaranteed;
and
(d) For a policy that has a contract premium, the contract
premium underlying the supplemental illustration is equal to
the contract premium shown in the basic illustration. For policies that do not require a contract premium, the premium
outlay underlying the supplemental illustration shall be equal
to the premium outlay shown in the basic illustration.
(2) The supplemental illustration shall include a notice
referring to the basic illustration for guaranteed elements and
other important information. [1997 c 313 § 7.]
48.23A.060 Illustration used or not used during
sale—Signed copy of illustration or acknowledgment of
no use—Computer screen—Retained copies. (1)(a) If a
basic illustration is used by an insurance producer or other
authorized representative of the insurer in the sale of a life
insurance policy and the policy is applied for as illustrated, a
copy of that illustration, signed in accordance with this chapter, shall be submitted to the insurer at the time of policy
application. A copy shall also be provided to the applicant.
(b) If the policy is issued other than as applied for, a
revised basic illustration conforming to the policy as issued
shall be sent with the policy. The revised illustration shall
conform to the requirements of this chapter, be labeled
"revised illustration," and be signed and dated by the applicant or policy owner and producer or other authorized representative of the insurer no later than the time the policy is
delivered. A copy shall be provided to the insurer and the policy owner.
(2)(a) If no illustration is used by an insurance producer
or other authorized representative in the sale of a life insurance policy, or if the policy is applied for other than as illustrated, the producer or representative shall certify to that
effect in writing on a form provided by the insurer. On the
same form the applicant shall acknowledge that no illustration conforming to the policy applied for was provided and
shall further acknowledge an understanding that an illustration conforming to the policy as issued will be provided no
later than at the time of policy delivery. This form shall be
submitted to the insurer at the time of policy application.
(b) If the policy is issued, a basic illustration conforming
to the policy as issued shall be sent with the policy and signed
no later than the time the policy is delivered. A copy shall be
provided to the insurer and the policy owner.
(3)(a) Where a computer screen illustration is used that
cannot be printed out during use, the producer shall certify in
writing on a form provided by the insurer that a computer
screen illustration was displayed. Such form shall require the
producer to provide, as applicable, the generic name of the
policy and any riders illustrated, the guaranteed and nonguaranteed interest rates illustrated, the number of policy years
illustrated, the initial death benefit, the premium amount
illustrated, and the assumed number of years of premiums.
On the same form the applicant shall acknowledge that an
illustration matching that which was displayed on the computer screen will be provided no later than the time of policy
48.23A.060
(2004 Ed.)
48.23A.070
delivery. A copy of this signed form shall be provided to the
applicant at the time it is signed.
(b) If the policy is issued, a basic illustration conforming
to the policy as issued shall be sent with the policy and signed
by the policy owner no later than the time the policy is delivered. A copy shall be provided to the policy owner and
retained by the insurer.
(c) If a computer screen illustration is used that can be
printed during use, a copy of that illustration, signed in accordance with this chapter, shall be submitted to the insurer at
the time of policy application. A copy shall also be provided
to the applicant.
(d) If the basic illustration or revised illustration is sent
to the applicant or policy owner by mail from the insurer, it
shall include instructions for the applicant or policy owner to
sign the duplicate copy of the numeric summary page of the
illustration for the policy issued and return the signed copy to
the insurer. The insurer's obligation under this subsection is
satisfied if it can demonstrate that it has made a diligent effort
to secure a signed copy of the numeric summary page. The
requirement to make a diligent effort shall be deemed satisfied if the insurer includes in the mailing a self-addressed,
postage prepaid envelope with instructions for the return of
the signed numeric summary page.
(4) A copy of the basic illustration and a revised basic
illustration, if any, signed as applicable, along with any certification that either no illustration was used or that the policy
was applied for other than as illustrated, shall be retained by
the insurer until three years after the policy is no longer in
force. A copy need not be retained if no policy is issued.
[1997 c 313 § 8.]
48.23A.070
48.23A.070 Policy designated for use of illustrations—Annual report—Required information—In-force
illustrations—Notice of adverse changes. (1) In the case of
a policy designated as one for which illustrations will be
used, the insurer shall provide each policy owner with an
annual report on the status of the policy that shall contain at
least the following information:
(a) For universal life policies, the report shall include the
following:
(i) The beginning and end date of the current report
period;
(ii) The policy value at the end of the previous report
period and at the end of the current report period;
(iii) The total amounts that have been credited or debited
to the policy value during the current report period, identifying each type, such as interest, mortality, expense, and riders;
(iv) The current death benefit at the end of the current
report period on each life covered by the policy;
(v) The net cash surrender value of the policy as of the
end of the current report period;
(vi) The amount of outstanding loans, if any, as of the
end of the current report period; and
(vii) For fixed premium policies: If, assuming guaranteed interest, mortality, and expense loads and continued
scheduled premium payments, the policy's net cash surrender
value is such that it would not maintain insurance in force
until the end of the next reporting period, a notice to this
effect shall be included in the report; or
[Title 48 RCW—page 159]
48.23A.080
Title 48 RCW: Insurance
(viii) For flexible premium policies: If, assuming guaranteed interest, mortality, and expense loads, the policy's net
cash surrender value will not maintain insurance in force
until the end of the next reporting period unless further premium payments are made, a notice to this effect shall be
included in the report.
(b) For all other policies, where applicable:
(i) Current death benefit;
(ii) Annual contract premium;
(iii) Current cash surrender value;
(iv) Current dividend;
(v) Application of current dividend; and
(vi) Amount of outstanding loan.
(c) Insurers writing life insurance policies that do not
build nonforfeiture values shall only be required to provide
an annual report with respect to these policies for those years
when a change has been made to nonguaranteed policy elements by the insurer.
(2) If the annual report does not include an in-force illustration, it shall contain the following notice displayed prominently: "IMPORTANT POLICY OWNER NOTICE: You
should consider requesting more detailed information about
your policy to understand how it may perform in the future.
You should not consider replacement of your policy or make
changes in your coverage without requesting a current illustration. You may annually request, without charge, such an
illustration by calling (insurer's phone number), writing to
(insurer's name) at (insurer's address) or contacting your
agent. If you do not receive a current illustration of your policy within 30 days from your request, you should contact
your state insurance department." The insurer may vary the
sequential order of the methods for obtaining an in-force
illustration.
(3) Upon the request of the policy owner, the insurer
shall furnish an in-force illustration of current and future benefits and values based on the insurer's present illustrated
scale. This illustration shall comply with the requirements of
RCW 48.23A.030 (1) and (2) and 48.23A.040 (1) and (5). No
signature or other acknowledgment of receipt of this illustration shall be required.
(4) If an adverse change in nonguaranteed elements that
could affect the policy has been made by the insurer since the
last annual report, the annual report shall contain a notice of
that fact and the nature of the change prominently displayed.
[1997 c 313 § 9.]
48.23A.080 Illustration actuaries—Conditions for
appointment—Duties—Certifications—Disclosures to
commissioner. (1) The board of directors of each insurer
shall appoint one or more illustration actuaries.
(2) The illustration actuary shall certify that the disciplined current scale used in illustrations is in conformity with
the actuarial standard of practice for compliance with the
national association of insurance commissioners model regulation on life insurance illustrations adopted by the actuarial
standards board, and that the illustrated scales used in
insurer-authorized illustrations meet the requirements of this
chapter.
(3) The illustration actuary shall:
(a) Be a member in good standing of the American academy of actuaries;
48.23A.080
[Title 48 RCW—page 160]
(b) Be familiar with the standard of practice regarding
life insurance policy illustrations;
(c) Not have been found by the commissioner, following
appropriate notice and hearing to have:
(i) Violated any provision of, or any obligation imposed
by, the insurance law or other law in the course of his or her
dealings as an illustration actuary;
(ii) Been found guilty of fraudulent or dishonest practices;
(iii) Demonstrated his or her incompetence, lack of
cooperation, or untrustworthiness to act as an illustration
actuary; or
(iv) Resigned or been removed as an illustration actuary
within the past five years as a result of acts or omissions indicated in any adverse report on examination or as a result of a
failure to adhere to generally acceptable actuarial standards;
(d) Not fail to notify the commissioner of any action
taken by a commissioner of another state similar to that under
(c) of this subsection;
(e) Disclose in the annual certification whether, since the
last certification, a currently payable scale applicable for
business issued within the previous five years and within the
scope of the certification has been reduced for reasons other
than changes in the experience factors underlying the disciplined current scale. If nonguaranteed elements illustrated for
new policies are not consistent with those illustrated for similar in-force policies, this must be disclosed in the annual certification. If nonguaranteed elements illustrated for both new
and in-force policies are not consistent with the nonguaranteed elements actually being paid, charged, or credited to the
same or similar forms, this must be disclosed in the annual
certification; and
(f) Disclose in the annual certification the method used
to allocate overhead expenses for all illustrations:
(i) Fully allocated expenses;
(ii) Marginal expenses; or
(iii) A generally recognized expense table based on fully
allocated expenses representing a significant portion of insurance companies and approved by the national association of
insurance commissioners.
(4)(a) The illustration actuary shall file a certification
with the board of directors and with the commissioner:
(i) Annually for all policy forms for which illustrations
are used; and
(ii) Before a new policy form is illustrated.
(b) If an error in a previous certification is discovered,
the illustration actuary shall notify the board of directors of
the insurer and the commissioner promptly.
(5) If an illustration actuary is unable to certify the scale
for any policy form illustration the insurer intends to use, the
actuary shall notify the board of directors of the insurer and
the commissioner promptly of his or her inability to certify.
(6) A responsible officer of the insurer, other than the
illustration actuary, shall certify annually:
(a) That the illustration formats meet the requirements of
this chapter and that the scales used in insurer-authorized
illustrations are those scales certified by the illustration actuary; and
(b) That the company has provided its agents with information about the expense allocation method used by the com(2004 Ed.)
Group Life and Annuities
pany in its illustrations and disclosed as required in subsection (3)(f) of this section.
(7) The annual certifications shall be provided to the
commissioner each year by a date determined by the insurer.
(8) If an insurer changes the illustration actuary responsible for all or a portion of the company's policy forms, the
insurer shall notify the commissioner of that fact promptly
and disclose the reason for the change. [1997 c 313 § 10.]
48.23A.090
48.23A.090 Violations—RCW 48.30.010(1). In addition to any other penalties provided by law, an insurer or producer that violates a requirement of this chapter is guilty of a
violation of RCW 48.30.010(1). [1997 c 313 § 11.]
48.23A.900
48.23A.900 Severability—1997 c 313. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1997 c 313 § 12.]
48.23A.901
48.23A.901 Effective date—Application—1997 c 313.
This act takes effect January 1, 1998, and applies to policies
sold on or after January 1, 1998. [1997 c 313 § 13.]
Chapter 48.24
Chapter 48.24 RCW
GROUP LIFE AND ANNUITIES
Sections
48.24.010
48.24.020
48.24.025
48.24.030
48.24.035
48.24.040
48.24.045
48.24.050
48.24.060
48.24.070
48.24.080
48.24.090
48.24.095
48.24.100
48.24.110
48.24.120
48.24.130
48.24.140
48.24.150
48.24.160
48.24.170
48.24.180
48.24.190
48.24.200
48.24.210
48.24.240
48.24.260
Group requirements.
Employee groups.
Payment of premium by employee when compensation suspended due to labor dispute.
Dependents of employees or members of certain groups.
Credit union groups.
Debtor groups.
Certain associations as groups.
Labor union groups.
Public employee associations.
Trustee groups.
Agent groups.
Washington state patrol.
Financial institutions.
Standard provisions.
Grace period.
Incontestability.
The contract—Representations.
Insurability.
Misstatement of age or sex.
Beneficiary—Funeral, last illness expenses.
Certificates.
Conversion on termination of eligibility.
Conversion on termination of policy.
Death pending conversion.
Limitation of liability.
Readjustment of premium.
Application of dividends or rate reductions.
Charitable gift annuity business: Chapter 48.38 RCW.
Exemption of proceeds, group life: RCW 48.18.420.
Group insurance on irrigation district employees: RCW 87.03.160.
Payment to person designated in policy or by assignment discharges
insurer: RCW 48.18.370.
Payroll deduction of public employees for insurance and medical benefits
authorized: RCW 41.04.020.
Payroll deductions and employees' contribution for group insurance on
employees of second class cities or towns authorized: RCW 35.23.460.
Policy dividends are payable to real party in interest: RCW 48.18.340.
Policy forms, execution, filing, etc.: Chapter 48.18 RCW.
(2004 Ed.)
48.24.020
48.24.010
48.24.010 Group requirements. (1) No contract of life
insurance shall hereafter be delivered or issued for delivery in
this state insuring the lives of more than one individual unless
to one of the groups as provided for in this chapter, and unless
in compliance with the other provisions of this chapter.
(2) Subsection (1) of this section shall not apply to contracts of life insurance
(a) insuring only individuals related by marriage, by
blood, or by legal adoption; or
(b) insuring only individuals having a common interest
through ownership of a business enterprise, or of a substantial
legal interest or equity therein, and who are actively engaged
in the management thereof; or
(c) insuring the lives of employees and retirees under
contracts executed with the state health care authority under
the provisions of chapter 41.05 RCW. [1988 c 107 § 22;
1973 1st ex.s. c 147 § 11; 1947 c 79 § .24.01; Rem. Supp.
1947 § 45.24.01.]
Implementation—Effective dates—1988 c 107: See RCW 41.05.901.
Effective date—Effect of veto—Savings—Severability—1973 1st
ex.s. c 147: See notes following RCW 41.05.050.
48.24.020
48.24.020 Employee groups. The lives of a group of
individuals may be insured under a policy issued to an
employer, or to the trustees of a fund established by an
employer, which employer or trustee is deemed the policyholder, insuring employees of the employer for the benefit of
persons other than the employer, subject to the following
requirements:
(1) The employees eligible for insurance under the policy shall be all of the employees of the employer, or all of any
class or classes thereof determined by conditions pertaining
to their employment. The policy may provide that the term
"employees" shall include the employees of one or more subsidiary corporations, and the employees, individual proprietors, and partners of one or more affiliated corporations, proprietors or partnerships if the business of the employer and of
such affiliated corporations, proprietors or partnerships is
under common control through stock ownership, contract or
otherwise. The policy may provide that the term "employees"
shall include the individual proprietor or partners if the
employer is an individual proprietor or a partnership. The
policy may provide that the term "employees" shall include
retired employees.
(2) The premium for the policy shall be paid by the policyholder, either wholly from the employer's funds or funds
contributed by him, or partly from such funds and partly from
funds contributed by the insured employees. No policy may
be issued on which the entire premium is to be derived from
funds contributed by the insured employees. A policy on
which part of the premium is to be derived from funds contributed by the insured employees may be placed in force
only if at least seventy-five percent of the then eligible
employees, excluding any as to whom evidence of individual
insurability is not satisfactory to the insurer, elect to make the
required contributions. A policy on which no part of the premium is to be derived from funds contributed by the insured
employees must insure all eligible employees, or all except
any as to whom evidence of individual insurability is not satisfactory to the insurer.
[Title 48 RCW—page 161]
48.24.025
Title 48 RCW: Insurance
(3) The policy must cover at least ten employees at date
of issue.
(4) The amounts of insurance under the policy must be
based upon some plan precluding individual selection either
by the employees or by the employer or trustees. [1955 c 303
§ 29; 1947 c 79 § .24.02; Rem. Supp. 1947 § 45.24.02.]
48.24.025
48.24.025 Payment of premium by employee when
compensation suspended due to labor dispute. Any
employee whose compensation includes group life insurance,
the premiums for which are paid in full or in part by an
employer including the state of Washington, its political subdivisions, or municipal corporations, or paid by payroll
deduction, may pay the premiums as they become due
directly to the policyholder whenever the employee's compensation is suspended or terminated directly or indirectly as
the result of a strike, lockout, or other labor dispute, for a
period not exceeding six months and at the rate and coverages
as the policy provides. During that period of time the policy
may not be altered or changed. Nothing in this section shall
be deemed to impair the right of the insurer to make normal
decreases or increases of the premium rate upon expiration
and renewal of the policy, in accordance with the provisions
of the policy. Thereafter, if such insurance coverage is no
longer available, then the employee shall be given the opportunity to purchase an individual policy at a rate consistent
with rates filed by the insurer with the commissioner. When
the employee's compensation is so suspended or terminated,
the employee shall be notified immediately by the policyholder in writing, by mail addressed to the address last on
record with the policyholder, that the employee may pay the
premiums to the policyholder as they become due as provided in this section.
Payment of the premiums must be made when due or the
insurance coverage may be terminated by the insurer.
The provisions of any insurance policy contrary to provisions of this section are void and unenforceable after May 29,
1975. [1975 1st ex.s. c 117 § 2.]
Severability—1975 1st ex.s. c 117: See note following RCW
48.21.075.
48.24.030 Dependents of employees or members of
certain groups. (1) Insurance under any group life insurance
policy issued pursuant to RCW 48.24.020, or 48.24.050, or
48.24.060, or 48.24.070 or 48.24.090 may, if seventy-five
percent of the then insured employees or labor union members or public employee association members or members of
the Washington state patrol elect, be extended to insure the
spouse and dependent children, or any class or classes
thereof, of each such insured employee or member who so
elects, in amounts in accordance with a plan which precludes
individual selection by the employees or members or by the
employer or labor union or trustee, and which insurance on
the life of any one family member including a spouse shall
not be in excess of fifty percent of the insurance on the life of
the insured employee or member.
Premiums for the insurance on such family members
shall be paid by the policyholder, either from the employer's
funds or funds contributed by him, trustee's funds, or labor
union funds, and/or from funds contributed by the insured
employees or members, or from both.
48.24.030
[Title 48 RCW—page 162]
(2) Such a spouse insured pursuant to this section shall
have the same conversion right as to the insurance on his or
her life as is vested in the employee or member under this
chapter. [1993 c 132 § 1; 1975 1st ex.s. c 266 § 11; 1965 ex.s.
c 70 § 23; 1963 c 192 § 1; 1953 c 197 § 10; 1947 c 79 §
.24.03; Rem. Supp. 1947 § 45.24.03.]
Severability—1975 1st ex.s. c 266: See note following RCW
48.01.010.
48.24.035 Credit union groups. The lives of a group of
individuals may be insured under a policy issued to a credit
union, which shall be deemed the policyholder, to insure eligible members of such credit union for the benefit of persons
other than the credit union or its officials, subject to the following requirements:
(1) The members eligible for insurance under the policy
shall be all of the members of a credit union, or all except any
as to whom evidence of individual insurability is not satisfactory to the insurer, or all of any class or classes thereof determined by conditions pertaining to their age or membership in
the credit union or both.
(2) The premium for the policy shall be paid by the policyholder, either wholly from the credit union's funds, or
partly from such funds and partly from funds contributed by
the insured members specifically for their insurance. No policy may be issued for which the entire premium is to be
derived from funds contributed by the insured members specifically for their insurance.
(3) The policy must cover at least twenty-five members
at the date of issue.
(4) The amount of insurance under the policy shall not
exceed the amount of the total shares and deposits of the
member.
(5) As used herein, "credit union" means a credit union
organized and operating under the federal credit union act of
1934 or chapter 31.12 RCW. [1982 c 181 § 14; 1961 c 194 §
8.]
48.24.035
Severability—1982 c 181: See note following RCW 48.03.010.
48.24.040 Debtor groups. The lives of a group of individuals may be insured under a policy issued to a creditor,
who shall be deemed the policyholder, to insure debtors of
the creditors, subject to the provisions of the insurance code
relating to credit life insurance and credit accident and health
insurance and to the following requirements:
(1) The debtors eligible for insurance under the policy
shall be all of the debtors of the creditor whose indebtedness
is repayable in installments, or all of any class or classes
thereof determined by conditions pertaining to the indebtedness or to the purchase giving rise to the indebtedness, except
that nothing in this section shall preclude an insurer from
excluding from the classes eligible for insurance classes of
debtors determined by age. The policy may provide that the
term "debtors" shall include the debtors of one or more subsidiary corporations, and the debtors of one or more affiliated
corporations, proprietors or partnerships if the business of the
policyholder and of such affiliated corporations, proprietors
or partnerships is under common control through stock ownership, contract, or otherwise.
(2) The premium for the policy shall be paid by the policyholder, either from the creditor's funds, or from charges
48.24.040
(2004 Ed.)
Group Life and Annuities
collected from the insured debtors, or from both. A policy on
which part or all of the premium is to be derived from the collection from the insured debtors of identifiable charges not
required of uninsured debtors shall not include, in the class or
classes of debtors eligible for insurance, debtors under obligations outstanding at its date of issue without evidence of
individual insurability unless at least seventy-five percent of
the then eligible debtors elect to pay the required charges. A
policy on which no part of the premium is to be derived from
the collection of such identifiable charges must insure all eligible debtors, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.
(3) The policy may be issued only if the group of eligible
debtors is then receiving new entrants at the rate of at least
one hundred persons yearly, or may reasonably be expected
to receive at least one hundred new entrants during the first
policy year, and only if the policy reserves to the insurer the
right to require evidence of individual insurability if less than
seventy-five percent of the new entrants become insured.
(4) Payment by the debtor insured under any such group
life insurance contract of the premium charged the creditor by
the insurer for such insurance pertaining to the debtor, shall
not be deemed to constitute a charge upon a loan in violation
of any usury law. [1967 c 150 § 28; 1961 c 194 § 9; 1955 c
303 § 18; 1947 c 79 § .24.04; Rem. Supp. 1947 § 45.24.04.]
48.24.045
48.24.045 Certain associations as groups. The lives of
a group of individuals may be insured under a policy issued
to an association which has been in active existence for at
least one year, which has a constitution and bylaws, and
which has been organized and is maintained in good faith for
purposes other than that of obtaining insurance. Under this
group life insurance policy, the association shall be deemed
the policyholder. The policy may insure association employees, members, or their employees. Beneficiaries under the
policy shall be persons other than the association or its officers or trustees. The term "employees" as used in this section
may include retired employees. [1979 ex.s. c 44 § 1.]
48.24.050
48.24.050 Labor union groups. The lives of a group of
individuals may be insured under a policy issued to a labor
union, which shall be deemed the policyholder, to insure
members of such union for the benefit of persons other than
the union or any of its officials, representatives or agents,
subject to the following requirements:
(1) The members eligible for insurance under the policy
shall be all of the members of the union, or all of any class or
classes thereof determined by conditions pertaining to their
employment, or to membership in the union, or both.
(2) The premium for the policy shall be paid by the policyholder, either wholly from the union's funds, or partly from
such funds and partly from funds contributed by the insured
members specifically for their insurance. No policy may be
issued of which the entire premium is to be derived from
funds contributed by the insured members specifically for
their insurance. A policy on which the premium is to be
derived in part from funds contributed by the insured members specifically for their insurance may be placed in force
only if at least seventy-five percent of the then eligible members, excluding any as to whom evidence of individual insur(2004 Ed.)
48.24.060
ability is not satisfactory to the insurer, elect to make the
required contributions. A policy on which no part of the premium is to be derived from funds contributed by the insured
members specifically for their insurance must insure all eligible members, or all except any as to whom evidence of individual insurability is not satisfactory to the insurer.
(3) The policy must cover at least twenty-five members
at date of issue.
(4) The amounts of insurance under the policy must be
based upon some plan precluding individual selection either
by the members or by the union. [1955 c 303 § 19; 1947 c 79
§ .24.05; Rem. Supp. 1947 § 45.24.05.]
48.24.060
48.24.060 Public employee associations. The lives of
a group of public employees may be insured under a policy
issued to the departmental head or to a trustee, or issued to an
association of public employees formed for purposes other
than obtaining insurance and having, when the policy is
placed in force, a membership in the classes eligible for
insurance of not less than seventy-five percent of the number
of employees eligible for membership in such classes, which
department head or trustee or association shall be deemed the
policyholder, to insure such employees for the benefit of persons other than the policyholder or any of its officials, subject
to the following requirements:
(1) The persons eligible for insurance under the policy
shall be all of the employees of the department or members of
the association, or all of any class or classes thereof determined by conditions pertaining to their employment, or to
membership in the association, or both.
(2) The premium for the policy shall be paid by the policyholder, in whole or in part either from salary deductions
authorized by, or charges collected from, the insured employees or members specifically for the insurance, or from the
association's own funds, or from both. Any such deductions
from salary may be paid by the employer to the association or
directly to the insurer. No policy may be placed in force
unless and until at least seventy-five percent of the then eligible employees or association members, excluding any as to
whom evidence of individual insurability is not satisfactory
to the insurer, have elected to be covered and have authorized
their employer to make any required deductions from salary.
(3) The rate of charges to the insured employees or members specifically for the insurance, and the dues of the association if they include the cost of insurance, shall be determined according to each attained age or in not less than four
reasonably spaced attained age groups. In no event shall the
rate of such dues or charges be level for all members regardless of attained age.
(4) The policy must cover at least twenty-five persons at
date of issue.
(5) The amounts of insurance under the policy must be
based upon some plan precluding individual selection either
by the employees or members or by the association.
As used herein, "public employees" means employees of
the United States government, or of any state, or of any political subdivision or instrumentality of any of them. [1989 c 10
§ 9. Prior: 1973 1st ex.s. c 163 § 8; 1973 1st ex.s. c 152 § 5;
1963 c 195 § 21; 1955 c 303 § 20; 1953 c 197 § 11; 1947 c 79
§ .24.06; Rem. Supp. 1947 § 45.24.06.]
[Title 48 RCW—page 163]
48.24.070
Title 48 RCW: Insurance
Severability—1973 1st ex.s. c 152: See note following RCW
48.05.140.
48.24.070
48.24.070 Trustee groups. The lives of a group of individuals may be insured under a policy issued to the trustees of
a fund established by two or more employers or by two or
more employer members of an employers' association, or by
one or more labor unions, or by one or more employers and
one or more labor unions, or by one or more employers and
one or more labor unions whose members are in the same or
related occupations or trades, which trustees shall be deemed
the policyholder, to insure employees or members for the
benefit of persons other than the employers or the unions,
subject to the following requirements:
(1) If the policy is issued to two or more employer members of an employers' association, such policy may be issued
only if (a) the association has been in existence for at least
five years and was formed for purposes other than obtaining
insurance and (b) the participating employers, meaning such
employer members whose employees are to be insured, constitute at date of issue at least fifty percent of the total
employers eligible to participate, unless the number of persons covered at date of issue exceeds six hundred, in which
event such participating employers must constitute at least
twenty-five percent of such total employers in either case
omitting from consideration any employer whose employees
are already covered for group life insurance.
(2) The persons eligible for insurance shall be all of the
employees of the employers or all of the members of the
unions, or all of any class or classes thereof determined by
conditions pertaining to their employment, or to membership
in the unions, or to both. The policy may provide that the term
"employees" shall include the individual proprietor or partners if an employer is an individual proprietor or a partnership. The policy may provide that the term "employees" shall
include the trustees or their employees, or both, if their duties
are connected with such trusteeship. The policy may provide
that the term "employees" shall include retired employees.
(3) The premium for the policy shall be paid by the trustees wholly from funds contributed by the employer or
employers of the insured persons, or by the union or unions,
or by both, or, partly from such funds and partly from funds
contributed by the insured persons. A policy on which part of
the premium is to be derived from funds contributed by the
insured persons specifically for their insurance may be placed
in force only if at least seventy-five percent of the then eligible persons, excluding any as to whom evidence of insurability is not satisfactory to the insurer, elect to make the required
contributions. A policy on which no part of the premium is to
be derived from funds contributed by the insured persons
specifically for their insurance must insure all eligible persons, or all except any as to whom evidence of individual
insurability is not satisfactory to the insurer.
(4) The policy must cover at least fifty persons at date of
issue.
(5) The amounts of insurance under the policy must be
based upon some plan precluding individual selection either
by the insured persons or by the policyholder, employers, or
unions. [1973 1st ex.s. c 163 § 9; 1963 c 86 § 1; 1959 c 225
§ 9; 1955 c 303 § 21; 1953 c 197 § 12; 1947 c 79 § .24.07;
Rem. Supp. 1947 § 45.24.07.]
[Title 48 RCW—page 164]
48.24.080
48.24.080 Agent groups. The lives of a group of individuals may be insured under a policy issued to a principal, or
if such principal is a life insurer, by or to such principal, covering when issued not less than twenty-five agents of such
principal, subject to the following requirements:
(1) The agents eligible for insurance under the policy
shall be those who are under contract to render personal services for such principal for a commission or other fixed or
ascertainable compensation.
(2) The policy must insure either all of the agents or all
of any class or classes thereof, determined by conditions pertaining to the services to be rendered by such agents, except
that if a policy is intended to insure several such classes it
may be issued to insure any such class of which seventy-five
percent are covered and extended to other classes as seventyfive percent thereof express the desire to be covered.
(3) The premium on the policy shall be paid by the principal or by the principal and the agents jointly. When the premium is paid by the principal and agents jointly and the benefits of the policy are offered to all eligible agents, the policy,
when issued, must insure not less than seventy-five percent of
such agents.
(4) The amounts of insurance shall be based upon some
plan which will preclude individual selection.
(5) The insurance shall be for the benefit of persons other
than the principal.
(6) Such policy shall terminate if, subsequent to issue,
the number of agents insured falls below twenty-five lives or
seventy-five percent of the number eligible and the contribution of the agents, if the premiums are on a renewable term
insurance basis, exceed one dollar per month per one thousand dollars of insurance coverage plus any additional premium per one thousand dollars of insurance coverage
charged to cover one or more hazardous occupations.
(7) For the purposes of this section "agents" shall be
deemed to include agents, subagents, solicitors, and salesmen. [1949 c 190 § 33; Rem. Supp. 1949 § 45.24.08.]
48.24.090
48.24.090 Washington state patrol. The lives of a
group of individuals may be insured under a policy issued to
the commanding officer, which commanding officer shall be
deemed the policyholder, to insure not less than twenty-five
of the members of the Washington state patrol. Such policy
shall be for the benefit of beneficiaries as designated by the
individuals so insured, and the premium thereon may be paid
by such members. Not less than seventy-five percent of all
eligible members of such Washington state patrol, or of any
unit thereof determined by conditions pertaining to their
employment, may be so insured. [1947 c 79 § .24.09; Rem.
Supp. 1947 § 45.24.09.]
48.24.095
48.24.095 Financial institutions. The lives of a group
of individuals may be insured under a policy issued to a state
or federally regulated financial institution, which financial
institution shall be deemed the policyholder. The purpose of
the policy shall be to insure the depositors or depositor members of the financial institution for the benefit of persons
other than the financial institution or its officers. The issuance of the policy shall be subject to the following requirements:
(2004 Ed.)
Group Life and Annuities
(1) The persons eligible for insurance under the policy
shall be the depositors or deposit members of such financial
institution, except any as to whom evidence of individual
insurability is not satisfactory to the insurer, or any class or
classes thereof determined by conditions of age.
(2) The policy must cover at least one hundred persons at
the date of issue.
(3) The amount of insurance under the policy shall not
exceed the amount of the deposit account of the insured person or five thousand dollars whichever is less.
(4) Financial institutions referred to herein must be
authorized to do business in the state of Washington and have
their depositors' or members' deposit accounts insured
against loss to the amount of at least fifteen thousand dollars
by a corporate agency of the federal government. [1967 ex.s.
c 95 § 15.]
48.24.180
48.24.130
48.24.130 The contract—Representations. There
shall be a provision that a copy of the application, if any, of
the policyholder shall be attached to the policy when issued
and become a part of the contract; that all statements made by
the policyholder or by the persons insured shall be deemed
representations and not warranties, and that no statement
made by any person insured shall be used in any contest
unless a copy of the instrument containing the statement is or
has been furnished to such person or to his beneficiary. [1947
c 79 § .24.13; Rem. Supp. 1947 § 45.24.13.]
48.24.140
48.24.140 Insurability. There shall be a provision setting forth the conditions, if any, under which the insurer
reserves the right to require a person eligible for insurance to
furnish evidence of individual insurability satisfactory to the
insurer as a condition to part or all of his coverage. [1947 c
79 § .24.14; Rem. Supp. 1947 § 45.24.14.]
48.24.100
48.24.100 Standard provisions. No policy of group
life insurance shall be delivered or issued for delivery in this
state unless it contains in substance the standard provisions as
required by RCW 48.24.110 to 48.24.200, inclusive, or provisions which in the opinion of the commissioner are more
favorable to the individuals insured, or at least as favorable to
such individuals and more favorable to the policyholder;
except that:
(1) Provisions set forth in RCW 48.24.160 to 48.24.200,
inclusive, shall not apply to policies issued to a creditor to
insure its debtors.
(2) If the group life insurance policy is on a plan of insurance other than the term plan, it shall contain a nonforfeiture
provision or provisions which in the opinion of the commissioner is or are equitable to the insured persons and to the policyholder, but such nonforfeiture benefits are not required to
be the same as those required for individual life insurance
policies. [1947 c 79 § .24.10; Rem. Supp. 1947 § 45.24.10.]
48.24.110
48.24.110 Grace period. There shall be a provision that
the policyholder is entitled to a grace period of thirty-one
days for the payment of any premium due except the first,
during which grace period the death benefit coverage shall
continue in force, unless the policyholder has given the
insurer written notice of discontinuance in advance of the
date of discontinuance and in accordance with the terms of
the policy. The policy may provide that the policyholder shall
be liable to the insurer for the payment of a pro rata premium
for the time the policy was in force during such grace period.
[1947 c 79 § .24.11; Rem. Supp. 1947 § 45.24.11.]
48.24.120
48.24.120 Incontestability. There shall be a provision
that the validity of the policy shall not be contested, except
for nonpayment of premiums, after it has been in force for
two years from its date of issue; and that no statement made
by an individual insured under the policy relating to his insurability shall be used in contesting the validity of the insurance
with respect to which such statement was made after such
insurance has been in force prior to the contest for a period of
two years during such individual's lifetime nor unless it is
contained in a written instrument signed by him. [1947 c 79
§ 24.12; Rem. Supp. 1947 § 45.24.12.]
(2004 Ed.)
48.24.150
48.24.150 Misstatement of age or sex. There shall be
a provision specifying an equitable adjustment of premiums
or of benefits or of both to be made in the event the age or sex
of a person insured has been misstated, such provision to contain a clear statement of the method of adjustment to be used.
[1983 1st ex.s. c 32 § 22; 1947 c 79 § .24.15; Rem. Supp.
1947 § 45.24.15.]
48.24.160
48.24.160 Beneficiary—Funeral, last illness
expenses. There shall be a provision that any sum becoming
due by reason of the death of the individual insured shall be
payable to the beneficiary designated by such individual, subject to the provisions of the policy in the event there is no designated beneficiary, as to all or any part of such sum, living at
the death of the individual insured and subject to any right
reserved by the insurer in the policy and set forth in the certificate to pay at its option a part of such sum not exceeding
ten percent of such amount or one thousand dollars, whichever is greater, to any person appearing to the insurer to be
equitably entitled thereto by reason of having incurred
funeral or other expenses incident to the last illness or death
of the individual insured. [1981 c 333 § 1; 1979 ex.s. c 199 §
9; 1955 c 303 § 23; 1947 c 79 § .24.16; Rem. Supp. 1947 §
45.24.16.]
48.24.170
48.24.170 Certificates. There shall be a provision that
the insurer will issue to the policyholder for delivery to each
individual insured a certificate setting forth a statement as to
the insurance protection to which he is entitled, to whom the
insurance benefits are payable, described by name, relationship, or reference to the insurance records of the policyholder
or insurer, and the rights and conditions set forth in RCW
48.24.180, 48.24.190 and 48.24.200, following. [1961 c 194
§ 10; 1947 c 79 § .24.17; Rem. Supp. 1947 § 45.24.17.]
48.24.180
48.24.180 Conversion on termination of eligibility.
There shall be a provision that if the insurance, or any portion
of it, on an individual covered under the policy, other than a
child insured pursuant to RCW 48.24.030, ceases because of
termination of employment or of membership in the class or
classes eligible for coverage under the policy, such individual
shall be entitled to have issued to him by the insurer, without
[Title 48 RCW—page 165]
48.24.190
Title 48 RCW: Insurance
evidence of insurability, an individual policy of life insurance
without disability or other supplementary benefits, provided
application for the individual policy shall be made, and the
first premium paid to the insurer, within thirty-one days after
such termination, and provided further that,
(1) the individual policy shall, at the option of such individual, be on any one of the forms, except term insurance,
then customarily issued by the insurer at the age and for the
amount applied for;
(2) the individual policy shall be in an amount not in any
event in excess of the amount of life insurance which ceases
because of such termination nor less than one thousand dollars unless a smaller amount of coverage was provided for
such individual under the group policy: PROVIDED, That
any amount of insurance which matures on the date of such
termination or has matured prior thereto under the group policy as an endowment payable to the individual insured,
whether in one sum or in installments or in the form of an
annuity, shall not, for the purposes of this provision, be
included in the amount which is considered to cease because
of such termination; and
(3) the premium on the individual policy shall be at the
insurer's then customary rate applicable to the form and
amount of the individual policy, to the class of risk to which
such individual then belongs, and to his age attained on the
effective date of the individual policy. [1955 c 303 § 24;
1947 c 79 § .24.18; Rem. Supp. 1947 § 45.24.18.]
48.24.190
48.24.190 Conversion on termination of policy.
There shall be a provision that if the group policy terminates
or is amended so as to terminate the insurance of any class of
insured individuals, every individual insured thereunder at
the date of such termination, other than a child insured pursuant to RCW 48.24.030, whose insurance terminates and who
has been so insured for at least five years prior to such termination date shall be entitled to have issued to him by the
insurer an individual policy of life insurance, subject to the
same conditions and limitations as are provided by RCW
48.24.180, except that the group policy may provide that the
amount of such individual policy shall not exceed the smaller
of (a) the amount of the individual's life insurance protection
ceasing because of the termination or amendment of the
group policy, less the amount of any life insurance for which
he is or becomes eligible under any group policy issued or
reinstated by the same or another insurer within thirty-one
days of such termination and (b) two thousand dollars. [1953
c 197 § 13; 1947 c 79 § .24.19; Rem. Supp. 1947 § 45.24.19.]
48.24.200
48.24.200 Death pending conversion. There shall be a
provision that if a person insured under the group policy dies
during the period within which he would have been entitled
to have an individual policy issued to him in accordance with
RCW 48.24.180 and 48.24.190, and before such an individual policy shall have become effective, the amount of life
insurance which he would have been entitled to have issued
to him under such individual policy shall be payable as a
claim under the group policy, whether or not application for
the individual policy or the payment of the first premium
therefor has been made. [1947 c 79 § .24.20; Rem. Supp.
1947 § 45.24.20.]
[Title 48 RCW—page 166]
48.24.210
48.24.210 Limitation of liability. (1) The insurer may
in any group life insurance contract provide that it is not liable, or is liable only in a reduced amount, for losses resulting:
(a) From war or any act of war, declared or undeclared,
or of service in the military, naval or air forces or in civilian
forces auxiliary thereto, or from any cause while a member of
any such military, naval or air forces, of any country at war,
declared or undeclared.
(b) From aviation under conditions specified in the policy.
(2) The insurer may in any such contract provide that any
amount of insurance in excess of one thousand dollars on an
individual life may be reduced to one thousand dollars or to
any greater amount upon attainment of any age not less than
age sixty-five or upon the anniversary of the policy nearest
attainment of such age. [1947 c 79 § .24.21; Rem. Supp.
1947 § 45.24.21.]
48.24.240
48.24.240 Readjustment of premium. Any group life
insurance contract may provide for a readjustment of the premium rate based on experience under that contract, at the end
of the first or of any subsequent year of insurance, and which
readjustment may be made retroactive for such policy year
only. [1947 c 79 § .24.24; Rem. Supp. 1947 § 45.24.24.]
48.24.260
48.24.260 Application of dividends or rate reductions. Any policy dividends hereafter declared, or reduction
in rate of premiums hereafter made or continued for the first
or any subsequent year of insurance, under any policy of
group life insurance heretofore or hereafter issued to any policyholder may be applied to reduce the policyholder's part of
the cost of such insurance, except that if the aggregate dividends or refunds or credits under such group policy and any
other group policy or contract issued to the policyholder
exceed the aggregate contributions of the policyholder
toward the cost of the coverages, such excess shall be applied
by the policyholder for the sole benefit of insured individuals.
[1947 c 79 § .24.26; Rem. Supp. 1947 § 45.24.26.]
Chapter 48.25
Chapter 48.25 RCW
INDUSTRIAL LIFE INSURANCE
Sections
48.25.010
48.25.020
48.25.030
48.25.040
48.25.050
48.25.060
48.25.070
48.25.080
48.25.090
48.25.100
48.25.110
48.25.120
48.25.130
48.25.140
48.25.150
48.25.160
48.25.170
48.25.180
48.25.190
48.25.200
48.25.210
48.25.220
48.25.230
Scope of chapter.
Industrial life insurance defined.
Compliance enjoined.
Standard provisions.
Grace period.
Entire contract.
Incontestability.
Misstatement of age.
Dividends.
Nonforfeiture benefits.
Cash surrender value.
Reinstatement.
Settlement.
Authority to alter policy.
Beneficiary.
Facility of payment clause.
Payment of premiums direct.
Conversion—Weekly premium policies.
Conversion—Monthly premium policies.
Title on policy.
Application to term and specified insurance.
Prohibited provisions.
Limitation of liability.
(2004 Ed.)
Industrial Life Insurance
Exemption of proceeds, life insurance: RCW 48.18.410.
Insurable interest, personal insurance, nonprofit organizations: RCW
48.18.030.
Minor may contract for life or disability insurance: RCW 48.18.020.
Payment to person designated in policy or by assignment discharges
insurer: RCW 48.18.370.
Policy forms, execution, filing, etc.: Chapter 48.18 RCW.
48.25.010
48.25.010 Scope of chapter. The provisions of this
chapter apply only to industrial life insurance contracts.
[1947 c 79 § .25.01; Rem. Supp. 1947 § 45.25.01.]
48.25.020
48.25.020 Industrial life insurance defined. "Industrial" life insurance is any life insurance provided by an individual insurance contract issued in face amount of less than
one thousand dollars, under which premiums are payable
monthly or oftener, and bearing the words "industrial policy"
printed upon the policy as a part of the descriptive matter.
[1947 c 79 § .25.02; Rem. Supp. 1947 § 45.25.02.]
48.25.030
48.25.030 Compliance enjoined. No policy of industrial life insurance shall be delivered or be issued for delivery
in this state after January 1, 1948, except in compliance with
the provisions of this chapter and with other applicable provisions of this code. [1947 c 79 § .25.03; Rem. Supp. 1947 §
45.25.03.]
48.25.040
48.25.040 Standard provisions. No such policy shall
be so issued or delivered unless it contains in substance the
provisions as required by this chapter, or provisions which in
the opinion of the commissioner are more favorable to the
policyholder. [1947 c 79 § .25.04; Rem. Supp. 1947 §
45.25.04.]
48.25.140
from its date of issue except for nonpayment of premiums,
and except, at the option of the insurer, as to supplemental
provisions providing benefits for total and permanent disability or specifically for accidental death. [1947 c 79 § .25.07;
Rem. Supp. 1947 § 45.25.07.]
48.25.080
48.25.080 Misstatement of age. There shall be a provision that if it is found that the age of the individual insured, or
the age of any other individual considered in determining the
premium, has been misstated, any amount payable or benefit
accruing under the policy shall be such as the premium would
have purchased at the correct age or ages. [1947 c 79 §
.25.08; Rem. Supp. 1947 § 45.25.08.]
48.25.090
48.25.090 Dividends. If a participating policy, there
shall be a provision that the insurer shall annually ascertain
and apportion any divisible surplus accruing on the policy,
and that dividends arising from such apportionment shall be
credited annually beginning not later than the fifth contract
year. This provision shall not prohibit the payment of additional dividends on default of payment of premiums or termination of the policy. [1947 c 79 § .25.09; Rem. Supp. 1947 §
45.25.09.]
48.25.100
48.25.100 Nonforfeiture benefits. There shall be a provision for nonforfeiture benefits as required by chapter 48.76
RCW. [1983 c 3 § 152; 1947 c 79 § .25.10; Rem. Supp. 1947
§ 45.25.10.]
48.25.110
48.25.110 Cash surrender value. There shall be a provision for a cash surrender value as required by chapter 48.76
RCW. [1983 c 3 § 153; 1947 c 79 § .25.11; Rem. Supp. 1947
§ 45.25.11.]
48.25.050
48.25.050 Grace period. There shall be a provision that
the insured is entitled to a grace period of four weeks within
which the payment of any premium after the first may be
made, except that in policies the premiums for which are payable monthly, the period of grace shall be one month but not
less than thirty days; and that during the period of grace the
policy shall continue in full force, but if during the grace
period the policy becomes a claim, then any overdue and
unpaid premiums may be deducted from any settlement
under the policy. [1947 c 79 § .25.05; Rem. Supp. 1947 §
45.25.05.]
48.25.120
48.25.120 Reinstatement. There shall be a provision
that the policy may be reinstated at any time within two years
from the due date of the premium in default unless the cash
surrender value has been paid, or the extension period
expired, upon the production of evidence of insurability satisfactory to the insurer and the payment of all overdue premiums and payment or reinstatement of any unpaid loans or
advances made by the insurer against the policy with interest
at a rate not exceeding six percent per annum and payable
annually. [1947 c 79 § .25.12; Rem. Supp. 1947 § 45.25.12.]
48.25.130
48.25.060
48.25.060 Entire contract. There shall be a provision
that the policy shall constitute the entire contract between the
parties, or, if a copy of the application is endorsed upon or
attached to the policy when issued, a provision that the policy
and the application therefor shall constitute the entire contract. If the application is so made a part of the contract, the
policy shall also provide that all statements made by the
applicant in such application shall, in the absence of fraud, be
deemed to be representations and not warranties. [1947 c 79
§ .25.06; Rem. Supp. 1947 § 45.25.06.]
48.25.070
48.25.070 Incontestability. There shall be a provision
that the policy shall be incontestable after it has been in force
during the lifetime of the insured for a period of two years
(2004 Ed.)
48.25.130 Settlement. There shall be a provision that
when the policy becomes a claim by the death of the insured,
settlement shall be made upon receipt of due proof of death or
after a specified period not exceeding two months after
receipt of such proof. [1947 c 79 § .25.13; Rem. Supp. 1947
§ 45.25.13.]
48.25.140
48.25.140 Authority to alter policy. There shall be a
provision that no agent shall have the power or authority to
waive, change or alter any of the terms or conditions of any
policy; except that, at the option of the insurer, the terms or
conditions may be changed by an endorsement signed by a
duly authorized officer of the insurer. [1947 c 79 § .25.14;
Rem. Supp. 1947 § 45.25.14.]
[Title 48 RCW—page 167]
48.25.150
Title 48 RCW: Insurance
48.25.150 Beneficiary. (1) Each such policy shall have
a space on the front or back page of the policy for the name of
the beneficiary designated with a reservation of the right to
designate or change the beneficiary after the issuance of the
policy.
(2) The policy may also provide that no designation or
change of beneficiary shall be binding on the insurer until
endorsed on the policy by the insurer, and that the insurer
may refuse to endorse the name of any proposed beneficiary
who does not appear to the insurer to have an insurable interest in the life of the insured. [1947 c 79 § .25.15; Rem. Supp.
1947 § 45.25.15.]
48.25.150
48.25.160 Facility of payment clause. Such a policy
may also provide that if the beneficiary designated in the policy does not surrender the policy with due proof of death
within the period stated in the policy, which shall not be less
than thirty days after the death of the insured, or if the beneficiary is the estate of the insured or is a minor, or dies before
the insured or is not legally competent to give a valid release,
then the insurer may make payment thereunder to the executor or administrator of the insured, or to any of the insured's
relatives by blood or legal adoption or connection by marriage, or to any person appearing to the insurer to be equitably
entitled thereto by reason of having been named beneficiary,
or by reason of having incurred expense for the maintenance,
medical attention or burial of the insured. Such policy may
also include a similar provision applicable to any other payment due under the policy. [1947 c 79 § .25.16; Rem. Supp.
1947 § 45.25.16.]
48.25.160
48.25.170 Payment of premiums direct. In the case of
weekly premium policies, there may be a provision that upon
proper notice to the insurer while premiums on the policy are
not in default beyond the grace period, of the intention to pay
future premiums directly to the insurer at its home office or
any office designated by the insurer for the purpose, the
insurer will, at the end of each period of a year from the due
date of the first premium so paid, for which period such premiums are so paid continuously without default beyond the
grace period, refund a stated percentage of the premiums in
an amount which fairly represents the savings in collection
expense. [1947 c 79 § .25.17; Rem. Supp. 1947 § 45.25.17.]
48.25.170
48.25.180 Conversion—Weekly premium policies.
There shall be a provision in the case of weekly premium policies granting, upon proper written request and upon presentation of evidence of the insurability of the insured satisfactory to the insurer, the privilege of converting his weekly premium industrial insurance to any form of life insurance with
less frequent premium payments regularly issued by the
insurer, in accordance with terms and conditions agreed upon
with the insurer. The privilege of making such conversion
need be granted only if the insurer's weekly premium industrial policies on the life insured, in force as premium paying
insurance and on which conversion is requested, grant benefits in event of death, exclusive of additional accidental death
benefits and exclusive of any dividend additions, in an
amount not less than the minimum amount of such insurance
with less frequent premium payments issued by the insurer at
the age of the insured on the plan of industrial or ordinary
48.25.180
[Title 48 RCW—page 168]
insurance desired. [1947 c 79 § .25.18; Rem. Supp. 1947 §
45.25.18.]
48.25.190
48.25.190 Conversion—Monthly premium policies.
There shall be a provision, in the case of monthly premium
industrial policies, granting, upon proper written request and
upon presentation of evidence of the insurability of the
insured satisfactory to the insurer, the privilege of converting
his monthly premium industrial insurance to any form of
ordinary life insurance regularly issued by the insurer, in
accordance with terms and conditions agreed upon with the
insurer. The privilege of making such conversions need be
granted only if the insurer's monthly premium industrial policies on the life insured, in force as premium paying insurance and on which conversion is requested, grant benefits in
event of death, exclusive of additional accidental death benefits and exclusive of any dividend additions, in an amount not
less than the minimum amount of ordinary insurance issued
by the insurer at the age of the insured on the plan of ordinary
insurance desired. [1947 c 79 § .25.19; Rem. Supp. 1947 §
45.25.19.]
48.25.200
48.25.200 Title on policy. There shall be a title on the
face of each such policy briefly describing its form. [1947 c
79 § .25.20; Rem. Supp. 1947 § 45.25.20.]
48.25.210
48.25.210 Application to term and specified insurance. Any of the provisions required by this chapter or any
portion thereof which are not applicable to single premium or
term policies or to policies issued or granted pursuant to nonforfeiture provisions, shall to that extent not be incorporated
therein. [1947 c 79 § .25.21; Rem. Supp. 1947 § 45.25.21.]
48.25.220
48.25.220 Prohibited provisions. No such policy shall
contain:
(1) A provision by which the insurer may deny liability
under the policy for the reason that the insured has previously
obtained other insurance from the same insurer.
(2) A provision giving the insurer the right to declare the
policy void because the insured has had any disease or ailment, whether specified or not, or because the insured has
received institutional, hospital, medical or surgical treatment
or attention, except a provision which gives the insurer the
right to declare the policy void if the insured has, within two
years prior to the issuance of the policy, received institutional, hospital, medical or surgical treatment or attention and
if the insured or claimant under the policy fails to show that
the condition occasioning such treatment or attention was not
of a serious nature or was not material to the risk.
(3) A provision giving the insurer the right to declare the
policy void because the insured had been rejected for insurance, unless such right be conditioned upon a showing by the
insurer, that knowledge of such rejection would have led to a
refusal by the insurer to make such contract. [1947 c 79 §
.25.22; Rem. Supp. 1947 § 45.25.22.]
48.25.230
48.25.230 Limitation of liability. The insurer may in
any such policy limit its liability for the same causes and to
the same extent as is provided in RCW 48.23.260 for other
(2004 Ed.)
Life Insurance—Profit-Sharing, Charter, Founders, and Coupon Policies
life insurance contracts. [1947 c 79 § .25.23; Rem. Supp.
1947 § 45.25.23.]
Chapter 48.25A RCW
LIFE INSURANCE—PROFIT-SHARING, CHARTER,
FOUNDERS, AND COUPON POLICIES
Chapter 48.25A
Sections
48.25A.010 Definitions.
48.25A.020 Certain policies not to be issued or delivered after September
1, 1967.
48.25A.030 Coupon policies—Approval by commissioner.
48.25A.040 Coupon policies—Requirements.
48.25A.050 Revocation of certificates of authority and licenses for violation of chapter.
48.25A.010 Definitions. As used in this chapter:
(1) "Profit-sharing policy" means:
(a) A life insurance policy which by its terms expressly
provides that the policyholder will participate in the distribution of earnings or surplus other than earnings or surplus
attributable, by reasonable and nondiscriminatory standards,
to the participating policies of the company and allocated to
the policyholder on reasonable and nondiscriminatory standards; or
(b) A life insurance policy the provisions of which,
through sales material or oral presentations, are interpreted
by the company to prospective policyholders as entitling the
policyholder to the benefits described in subsection (a) of this
section.
(2) "Charter policy" or "founders policy" means:
(a) A life insurance policy which by its terms expressly
provides that the policyholder will receive some preferential
or discriminatory advantage or benefit not available to persons who purchase insurance from the company at future
dates or under other circumstances; or
(b) A life insurance policy the provisions of which,
through sales material or oral presentations, are interpreted
by the company to prospective policyholders as entitling the
policyholder to the benefits described in subsection (a) of this
section.
(3) "Coupon policy" means a life insurance policy which
provides a series of pure endowments maturing periodically
in amounts not exceeding the gross annual policy premiums.
The term "pure endowment" or "endowment" is used in its
accepted actuarial sense, meaning a benefit becoming payable at a specific future date if the insured person is then living. [1967 ex.s. c 95 § 5.]
48.25A.010
48.27.010
(1) No detachable coupons or certificates or passbooks
may be used. No other device may be used which tends to
emphasize the periodic endowment benefits or which tends to
create the impression that the endowments represent interest
earnings or anything other than benefits which have been
purchased by part of the policyholder's premium payments.
(2) Each endowment benefit must have a fixed maturity
date and payment of the endowment benefit shall not be contingent upon the payment of any premium becoming due on
or after such maturity date.
(3) The endowment benefits must be expressed in dollar
amounts rather than as percentages of other quantities or in
other ways, both in the policy itself and in the sale thereof.
(4) A separate premium for the periodic endowment benefits must be shown in the policy adjacent to the rest of the
policy premium information and must be given the same
emphasis in the policy and in the sale thereof as that given the
rest of the policy premium information. This premium shall
be calculated with mortality, interest and expense factors
which are consistent with those for the basic policy premium.
[1967 ex.s. c 95 § 8.]
48.25A.050
48.25A.050 Revocation of certificates of authority
and licenses for violation of chapter. The commissioner
may revoke all certificates of authority and licenses granted
to any insurance company, its officers or agents violating any
provision of this chapter. [1967 ex.s. c 95 § 9.]
Chapter 48.26 RCW
MARINE AND TRANSPORTATION INSURANCE
(RESERVED)
Chapter 48.26
Chapter 48.27
Chapter 48.27 RCW
PROPERTY INSURANCE
Sections
48.27.010
48.27.020
Over-insurance prohibited.
Replacement insurance.
Binders: RCW 48.18.230.
Insurable interest, property insurance, nonprofit organizations: RCW
48.18.040.
Policy forms, execution, filing, etc.: Chapter 48.18 RCW.
Rates: Chapter 48.19 RCW.
Standard form of fire policy: RCW 48.18.120.
48.27.010
48.25A.020 Certain policies not to be issued or delivered after September 1, 1967. No profit-sharing, charter, or
founders policy shall be issued or delivered in this state after
September 1, 1967. [1967 ex.s. c 95 § 6.]
48.25A.020
48.25A.030 Coupon policies—Approval by commissioner. No coupon policy shall be issued or delivered in this
state until the form of the same has been filed with and
approved by the commissioner. [1967 ex.s. c 95 § 7.]
48.25A.030
48.25A.040
48.25A.040 Coupon policies—Requirements. Coupon policies issued or delivered in this state shall be subject
to the following provisions:
(2004 Ed.)
48.27.010 Over-insurance prohibited. (1) Over-insurance shall be deemed to exist if property or an insurable interest therein is insured by one or more insurance contracts
against the same hazard in any amount in excess of the fair
value of the property or of such interest, as determined as of
the effective date of the insurance or of any renewal thereof,
or in those instances when insured value is for improvements
and land.
(2) For the purposes of this section only the term "fair
value" means the cost of replacement less such depreciation
as is properly applicable to the subject insured.
(3) No person shall knowingly require, request, issue,
place, procure, or accept any insurance contract which would
result in over-insurance of the property or interest therein
[Title 48 RCW—page 169]
48.27.020
Title 48 RCW: Insurance
proposed to be insured, except as is provided in RCW
48.27.020.
(4) No person shall compel an insured or applicant for
insurance to procure property insurance in an amount in
excess of the amount which could reasonably be expected to
be paid under the policy (or combination of policies) in the
event of a loss, whether such insurance is required in connection with a loan or otherwise.
(5) Each violation of this section shall subject the violator to the penalties provided by this code. [1984 c 6 § 1; 1947
c 79 § .27.01; Rem. Supp. 1947 § 45.27.01.]
48.27.020
48.27.020 Replacement insurance. By any contract of
insurance of property or of any insurable interest therein, the
insurer may in connection with a special provision or
endorsement made a part of the policy insure the cost of
repair or replacement of such property, if damaged or
destroyed by a hazard insured against, and without deduction
of depreciation, subject to such reasonable rules and regulations as may be made by the commissioner. [1951 c 194 § 1;
1947 c 79 § .27.02; formerly Rem. Supp. 1947 § 45.27.02.]
recover costs may include therein such reasonable sum as
was paid to such surety insurer as premium for any bond or
undertaking required therein, and as may be allowed by the
court having jurisdiction of such proceeding. [1955 c 30 § 2.
Prior: 1947 c 79 § .28.03; Rem. Supp. 1947 § 45.28.03.]
Rules of court: Cf. RAP 14.3, 18.22.
48.28.040
48.28.040 Official bonds—Payment of premiums.
The premium for bonds given by such surety insurers for
appointive or elective public officers and for such of their
deputies or employees as are required to give bond shall be
paid by the state, political subdivision, or public body so
served. [1955 c 30 § 3. Prior: 1947 c 79 § .28.04; Rem. Supp.
1947 § 45.28.04.]
48.28.050
48.28.050 Release from liability. A surety insurer may
be released from its liability on the same terms and conditions
as are provided by law for the release of individuals as sureties. [1947 c 79 § .28.05; Rem. Supp. 1947 § 45.28.05.]
Chapter 48.29
Chapter 48.28
Chapter 48.28 RCW
SURETY INSURANCE
Sections
48.28.010
48.28.020
48.28.030
48.28.040
48.28.050
Requirements deemed met by surety insurer.
Fiduciary bonds—Premium as lawful expense.
Judicial bonds—Premium as part of recoverable costs.
Official bonds—Payment of premiums.
Release from liability.
Binders: RCW 48.18.230.
Official bonds in general: Chapter 42.08 RCW.
Policy forms, execution, filing, etc.: Chapter 48.18 RCW.
48.28.010
48.28.010 Requirements deemed met by surety
insurer. Whenever by law or by rule of any court, public
official, or public body, any surety bond, recognizance, obligation, stipulation or undertaking is required or is permitted
to be given, any such bond, recognizance, obligation, stipulation, or undertaking which is otherwise proper and the conditions of which are guaranteed by an authorized surety insurer,
or by an unauthorized surety insurer as a surplus line pursuant
to chapter 48.15 RCW of this code, shall be approved and
accepted and shall be deemed to fulfill all requirements as to
number of sureties, residence or status of sureties, and other
similar requirements, and no justification by such surety shall
be necessary. [1947 c 79 § .28.01; Rem. Supp. 1947 §
45.28.01.]
48.28.020
48.28.020 Fiduciary bonds—Premium as lawful
expense. Any fiduciary required by law to give bonds, may
include as part of his lawful expense to be allowed by the
court or official by whom he was appointed, the reasonable
amount paid as premium for such bonds to the authorized
surety insurer or to the surplus line surety insurer which
issued or guaranteed such bonds. [1955 c 30 § 1. Prior: 1947
c 79 § .28.02; Rem. Supp. 1947 § 45.28.02.]
48.28.030
48.28.030 Judicial bonds—Premium as part of
recoverable costs. In any proceeding the party entitled to
[Title 48 RCW—page 170]
Chapter 48.29 RCW
TITLE INSURERS
Sections
48.29.010
48.29.020
48.29.030
48.29.040
48.29.060
48.29.070
48.29.090
48.29.100
48.29.110
48.29.120
48.29.130
48.29.140
48.29.150
48.29.155
48.29.160
48.29.170
48.29.180
48.29.190
48.29.200
Scope of chapter—Definitions.
Qualifications—Guaranty fund deposit.
Amount of deposit.
May do business in two or more counties—Restrictions.
Impairment of deposit.
Levy of execution against deposit.
Purpose of deposit.
Termination of deposit.
Release of securities.
Special reserve fund.
Investments.
Premium rates.
Taxation of title insurers.
Agent license—Financial responsibility—Definitions.
Agents—County tract indexes required.
Agents—Separate licenses for individuals not required.
Disclosure of energy conservation payment obligations—
Informational note—Liability.
Conducting business as escrow agent—Requirements—Violation, penalties.
Prohibited practices.
48.29.010
48.29.010 Scope of chapter—Definitions. (1) This
chapter relates only to title insurers.
(2) None of the provisions of this code shall be deemed
to apply to persons engaged in the business of preparing and
issuing abstracts of title to property and certifying to the correctness thereof so long as such persons do not guarantee or
insure such titles.
(3) For purposes of this chapter, unless the context
clearly requires otherwise:
(a) "Title policy" means any written instrument, contract,
or guarantee by means of which title insurance liability is
assumed.
(b) "Abstract of title" means a written representation,
provided pursuant to contract, whether written or oral,
intended to be relied upon by the person who has contracted
for the receipt of such representation, listing all recorded conveyances, instruments, or documents which, under the laws
of the state of Washington, impart constructive notice with
respect to the chain of title to the real property described. An
(2004 Ed.)
Title Insurers
abstract of title is not a title policy as defined in this subsection.
(c) "Preliminary report," "commitment," or "binder"
means reports furnished in connection with an application for
title insurance and are offers to issue a title policy subject to
the stated exceptions set forth in the reports, the conditions
and stipulations of the report and the issued policy, and such
other matters as may be incorporated by reference. The
reports are not abstracts of title, nor are any of the rights,
duties, or responsibilities applicable to the preparation and
issuance of an abstract of title applicable to the issuance of
any report. Any such report shall not be construed as, nor
constitute, a representation as to the condition of the title to
real property, but shall constitute a statement of terms and
conditions upon which the issuer is willing to issue its title
policy, if such offer is accepted. [1997 c 14 § 1; 1947 c 79 §
.29.01; Rem. Supp. 1947 § 45.29.01.]
48.29.020
48.29.020 Qualifications—Guaranty fund deposit. A
title insurer shall not be entitled to have a certificate of
authority unless it otherwise qualifies therefor, nor unless:
(1) It is a stock corporation.
(2) It owns or leases and maintains a complete set of tract
indexes of the county in which its principal office within this
state is located.
(3) It deposits and keeps on deposit with the commissioner a guaranty fund in amount as set forth in RCW
48.29.030 and comprised of cash or public obligations as
specified in RCW 48.13.040. [1990 c 76 § 1; 1955 c 86 § 12;
1947 c 79 § .29.02; Rem. Supp. 1947 § 45.29.02.]
Effective date—Supervision of transfers—1955 c 86: See notes following RCW 48.05.080.
48.29.030
48.29.030 Amount of deposit. (1) The amount of the
required guaranty fund deposit shall be determined by the
population, as at last official United States or official state
census, of the county within which the insurer is to be authorized to transact its business, as follows:
County population
More
than
0
15,000
35,000
60,000
100,000
150,000
300,000
500,000
but not
more than
15,000
35,000
60,000
100,000
150,000
300,000
500,000
Amount of
guaranty
fund deposit
required
$ 10,000.00
$ 15,000.00
$ 25,000.00
$ 50,000.00
$ 75,000.00
$100,000.00
$150,000.00
$200,000.00
(2) For authority to transact business in two or more
counties, the insurer must have a guaranty fund deposit in
amount not less than the amount required under subsection
(1) as to that one of the counties in which business is to be so
transacted for which the largest amount is so required. [1957
c 193 § 16; 1947 c 79 § .29.03; Rem. Supp. 1947 § 45.29.03.]
48.29.040
48.29.040 May do business in two or more counties—
Restrictions. (1) Subject to the deposit requirements of
(2004 Ed.)
48.29.090
RCW 48.29.030, a title insurer having its principal offices in
one county may be authorized to transact business in only
such additional counties as to which it owns or leases and
maintains, or has a duly authorized agent that owns or leases
and maintains, a complete set of tract indexes.
(2) A title insurer not authorized to transact business in a
certain county may purchase a title policy on property located
therein from another title insurer which is so authorized in
that county. The first title insurer may thereafter issue its own
policy of title insurance to the owner of such property. The
first title insurer may combine the insurance on the title of
such property in a single policy which also insures the title of
one or more other pieces of property. The first title insurer
must pay the full premium based on filed rates for the policy,
and must charge the precise same amount to its own customer
for the insurance as to the title of such property. A title
insurer using the authority granted by this subsection in a
transaction must so notify its customer. [1990 c 76 § 2; 1957
c 193 § 17; 1947 c 79 § .29.04; Rem. Supp. 1947 § 45.29.04.]
48.29.060
48.29.060 Impairment of deposit. If an insurer's guaranty fund deposit becomes impaired for any cause, the commissioner shall forthwith give notice thereof to the insurer,
requiring that the impairment be cured within thirty days
after the date of the notice. If the impairment is not so cured,
the commissioner shall forthwith revoke the insurer's certificate of authority. [1947 c 79 § .29.06; Rem. Supp. 1947 §
45.29.06.]
48.29.070
48.29.070 Levy of execution against deposit. If an
insurer fails to satisfy any judgment against it arising out of
its liability under any title insurance policy or certificate of
title issued, insured, or assumed by it, within thirty days after
the finality of the judgment became fixed, the judgment may
be enforced against the insurer's guaranty fund deposit
through the following procedure:
(1) The judgment creditor shall petition the court
wherein the judgment is entered and as part of the same
cause, truthfully setting forth the facts regarding the insurer's
failure to satisfy the judgment as required by this section.
(2) Upon such petition the court shall direct issuance of a
special execution directed to the sheriff of Thurston county,
requiring that the sheriff sell so much of the securities on
deposit as may be required to satisfy the judgment and pay
the costs of the levy.
(3) The court's order for issuance of the special execution
shall also direct that a copy of the judgment and of the petition be served upon the commissioner within five days after
the date of the order.
(4) Upon issuance of such special execution and upon
such service upon the commissioner, the commissioner shall
deliver to such sheriff sufficient of such securities as may be
required for sale to satisfy the judgment and to pay such
costs. [1955 c 86 § 14; 1947 c 79 § .29.07; Rem. Supp. 1947
§ 45.29.07.]
Effective date—Supervision of transfers—1955 c 86: See notes following RCW 48.05.080.
48.29.090
48.29.090 Purpose of deposit. (1) The securities comprising the guaranty fund deposit shall be held by the com[Title 48 RCW—page 171]
48.29.100
Title 48 RCW: Insurance
missioner as a special guaranty fund securing the faithful performance by the insurer of all its undertakings and liabilities
as to any title guaranteed or insured by it.
(2) Such deposit shall not be subject to any other liabilities of the insurer until after all its liabilities named in subsection (1) of this section have been discharged. [1955 c 86 § 16;
1947 c 79 § .29.09; Rem. Supp. 1947 § 45.29.09.]
Effective date—Supervision of transfers—1955 c 86: See notes following RCW 48.05.080.
48.29.100 Termination of deposit. (1) A guaranty fund
deposit shall be terminated only upon the existence of any of
the following conditions:
(a) Upon termination of all liabilities of the insurer, other
than through reinsurance, under all guaranties or insurances
of titles made, issued, or assumed by it.
(b) Upon reinsurance of all such liabilities of the insurer,
with the commissioner's approval, in another insurer holding
a certificate of authority as a title insurer in this state.
(2) For the purposes of this section only, all liability of
the insurer with regard to a title guaranteed or insured by it
shall be deemed terminated upon the expiration of twentyone years from the date of the guaranty or insurance, unless
prior thereto a claim of loss has been made with reference
thereto and settlement of such loss then remains pending.
[1947 c 79 § .29.10; Rem. Supp. 1947 § 45.29.10.]
48.29.100
48.29.110 Release of securities. (1) Upon any termination of the guaranty fund deposit, the commissioner shall
release the securities comprising it to the insurer after the following conditions have been complied with:
(a) The insurer shall make written application for such
release, verified by the oaths of its president and secretary.
(b) The commissioner shall in due course following upon
such application make such examination of the records of the
insurer, and of the insurer's officers under oath, as he deems
reasonably necessary to determine that the conditions for termination of the deposit have been met.
(2) Upon release of the securities, the commissioner
shall revoke the insurer's certificate of authority. [1955 c 86
§ 17; 1947 c 79 § .29.11; Rem. Supp. 1947 § 45.29.11.]
48.29.110
like special reserve fund on such insurance is maintained by
the ceding insurer. [1947 c 79 § .29.12; Rem. Supp. 1947 §
45.29.12.]
48.29.130
48.29.130 Investments. The funds of a domestic title
insurer, other than those representing its guaranty fund
deposit, shall be invested as follows:
(1) Funds in amount not less than its required special
reserve shall be kept invested in investments eligible for
domestic life insurers.
(2) Other funds may be invested in:
(a) The insurer's plant and equipment, up to a maximum
of fifty percent of capital plus surplus.
(b) Stocks and bonds of abstract companies when
approved by the commissioner.
(c) Investments eligible for the investment of funds of
any domestic insurer. [1967 c 150 § 30; 1947 c 79 § .29.13;
Rem. Supp. 1947 § 45.29.13.]
48.29.140
48.29.140 Premium rates. (1) Premium rates for the
insuring or guaranteeing of titles shall not be excessive, inadequate, or unfairly discriminatory.
(2) Each title insurer shall forthwith file with the commissioner a schedule showing the premium rates to be
charged by it. Every addition to or modification of such
schedule or of any rate therein contained shall likewise be
filed with the commissioner, and no such addition or modification shall be effective until expiration of fifteen days after
date of such filing.
(3) The commissioner may order the modification of any
premium rate or schedule of premium rates found by him
after a hearing to be excessive, or inadequate, or unfairly discriminatory. No such order shall require retroactive modification. [1947 c 79 § .29.14; Rem. Supp. 1947 § 45.29.14.]
48.29.150
48.29.150 Taxation of title insurers. Title insurers and
their property shall be taxed by this state in accordance with
the general laws relating to taxation, and not otherwise.
[1947 c 79 § .29.15; Rem. Supp. 1947 § 45.29.15.]
48.29.155
Effective date—Supervision of transfers—1955 c 86: See notes following RCW 48.05.080.
48.29.120 Special reserve fund. (1) Each title insurer
shall annually apportion to a special reserve fund an amount
determined by applying the rate of twenty-five cents for each
one thousand dollars of net increase of insurance it has in
force as at the end of such year. Such apportionment shall be
continued or resumed as needed to maintain the special
reserve fund at an amount equal to not less than the guaranty
fund deposit required of the insurer.
(2) The special reserve fund shall be held by the insurer
as an additional guaranty fund, and shall be used only for the
payment of losses after the insurer's liquid resources available for the payment of losses, other than such special reserve
fund or the guaranty fund deposit, have been exhausted.
(3) For the purposes of computing the special reserve
fund as provided in subsection (1) of this section, net increase
of insurance in force resulting from reinsurance of the risks of
another title insurer shall not be included to the extent that a
48.29.120
[Title 48 RCW—page 172]
48.29.155 Agent license—Financial responsibility—
Definitions. (1) At the time of filing an application for a title
insurance agent license, or any renewal or reinstatement of a
title insurance agent license, the applicant shall provide satisfactory evidence to the commissioner of having obtained the
following as evidence of financial responsibility:
(a) A fidelity bond or fidelity insurance providing coverage in the aggregate amount of two hundred thousand dollars
with a deductible no greater than ten thousand dollars covering the applicant and each corporate officer, partner, escrow
officer, and employee of the applicant conducting the business of an escrow agent as defined in RCW 18.44.011 and
exempt from licensing under RCW 18.44.021(6); and
(b) A surety bond in the amount of ten thousand dollars
executed by the applicant as obligor and by a surety company
authorized to do a surety business in this state as surety, or
some other security approved by the commissioner, unless
the fidelity bond or fidelity insurance obtained by the licensee to satisfy the requirement in (a) of this subsection does
not have a deductible. The bond shall run to the state of
(2004 Ed.)
Title Insurers
Washington as obligee, and shall run to the benefit of the
state and any person or persons who suffer loss by reason of
the applicant's or its employee's violation of this chapter. The
bond shall be conditioned that the obligor as licensee will
faithfully conform to and abide by this chapter and all rules
adopted under this chapter, and shall reimburse all persons
who suffer loss by reason of a violation of this chapter or
rules adopted under this chapter. The bond shall be continuous and may be canceled by the surety upon the surety giving
written notice to the commissioner of its intent to cancel the
bond. The cancellation shall be effective thirty days after the
notice is received by the commissioner. Whether or not the
bond is renewed, continued, reinstated, reissued, or otherwise
extended, replaced, or modified, including increases or
decreases in the penal sum, it shall be considered one continuous obligation, and the surety upon the bond shall not be liable in an aggregate amount exceeding the penal sum set forth
on the face of the bond. In no event shall the penal sum, or
any portion thereof, at two or more points in time be added
together in determining the surety's liability. The bond is not
liable for any penalties imposed on the licensee, including but
not limited to any increased damages or attorneys' fees, or
both, awarded under RCW 19.86.090.
(2) For the purposes of this section, a "fidelity bond"
means a primary commercial blanket bond or its equivalent
satisfactory to the commissioner and written by an insurer
authorized to transact this line of business in the state of
Washington. The bond shall provide fidelity coverage for
any fraudulent or dishonest acts committed by any one or
more of the employees, officers, or owners as defined in the
bond, acting alone or in collusion with others. The bond shall
be for the sole benefit of the title insurance agent and under
no circumstances whatsoever shall the bonding company be
liable under the bond to any other party. The bond shall name
the title insurance agent as obligee and shall protect the obligee against the loss of money or other real or personal property belonging to the obligee, or in which the obligee has a
pecuniary interest, or for which the obligee is legally liable or
held by the obligee in any capacity, whether the obligee is
legally liable therefor or not. The bond may be canceled by
the insurer upon delivery of thirty days' written notice to the
commissioner and to the title insurance agent.
(3) For the purposes of this section, "fidelity insurance"
means employee dishonesty insurance or its equivalent satisfactory to the commissioner and written by an insurer authorized to transact this line of business in the state of Washington. The insurance shall provide coverage for any fraudulent
or dishonest acts committed by any one or more of the
employees, officers, or owners as defined in the policy of
insurance, acting alone or in collusion with others. The insurance shall be for the sole benefit of the title insurance agent
and under no circumstances whatsoever shall the insurance
company be liable under the insurance to any other party.
The insurance shall name the title insurance agent as the
named insured and shall protect the named insured against
the loss of money or other real or personal property belonging
to the named insured, or in which the named insured has a
pecuniary interest, or for which the named insured is legally
liable or held by the named insured in any capacity, whether
the named insured is legally liable therefor or not. The insurance coverage may be canceled by the insurer upon delivery
(2004 Ed.)
48.29.190
of thirty days' written notice to the commissioner and to the
title insurance agent.
(4) The fidelity bond or fidelity insurance, and the surety
bond or other form of security approved by the commissioner, shall be kept in full force and effect as a condition precedent to the title insurance agent's authority to transact business in this state, and the title insurance agent shall supply the
commissioner with satisfactory evidence thereof upon
request. [2003 c 202 § 1.]
48.29.160
48.29.160 Agents—County tract indexes required.
To be licensed as [an] agent of a title insurer, the applicant
must own or lease and maintain a complete set of tract
indexes of the county or counties in which such agent will do
business. [1981 c 223 § 1.]
48.29.170
48.29.170 Agents—Separate licenses for individuals
not required. Title insurance agents shall be exempt from
the provisions of *RCW 48.17.090(2) and 48.17.180(1)
which otherwise require that each individual empowered to
exercise the authority of a licensed firm or corporation must
be separately licensed. [1981 c 223 § 2.]
*Reviser's note: RCW 48.17.090 was amended by 1981 c 339 § 10
which deleted subsection (2).
48.29.180
48.29.180 Disclosure of energy conservation payment
obligations—Informational note—Liability. The existence of notices of payment obligations in RCW 80.28.065
may be disclosed as an informational note to a preliminary
commitment for policy of title insurance. Neither the inclusion nor the exclusion of any such informational note shall
create any liability against such title insurer under any preliminary commitment for title insurance, policy or otherwise.
[1993 c 245 § 4.]
Findings—Intent—1993 c 245: See note following RCW 80.28.065.
48.29.190
48.29.190 Conducting business as escrow agent—
Requirements—Violation, penalties. (1) Every title insurance company and title insurance agent conducting the business of an escrow agent as defined in RCW 18.44.011 and
exempt from licensing under RCW 18.44.021(6) shall:
(a) Keep adequate records, as determined by rule by the
insurance commissioner, of all transactions handled by the
title insurance company or title insurance agent, including
itemization of all receipts and disbursements of each transaction. These records shall be maintained in this state, unless
otherwise approved by the insurance commissioner, for a
period of six years from completion of the transaction. These
records shall be open to inspection by the insurance commissioner or his or her authorized representatives;
(b) Keep separate escrow fund account or accounts in a
recognized Washington state depositary or depositaries
authorized to receive funds, in which shall be kept separate
and apart and segregated from the title insurance company or
title insurance agent's own funds, all funds or moneys of clients which are being held by the title insurance company or
title insurance agent pending the closing of a transaction and
such funds shall be deposited not later than the first banking
day following receipt thereof; and
[Title 48 RCW—page 173]
48.29.200
Title 48 RCW: Insurance
(c) Not make disbursements on any escrow account
without first receiving deposits directly relating to the
account in amounts at least equal to the disbursements. A title
insurance company or title insurance agent shall not make
disbursements until the next business day after the business
day on which the funds are deposited unless the deposit is
made in cash, by interbank electronic transfer, or in a form
that permits conversion of the deposit to cash on the same day
the deposit is made. The deposits shall be in one of the following forms:
(i) Cash;
(ii) Interbank electronic transfers such that the funds are
unconditionally received by the title insurance company or
the title insurance agent or the title insurance company or title
insurance agent's depository;
(iii) Checks, negotiable orders of withdrawal, money
orders, cashier's checks, and certified checks that are payable
in Washington state and drawn on financial institutions
located in Washington state;
(iv) Checks, negotiable orders of withdrawal, money
orders, and any other item that has been finally paid as
described in RCW 62A.4-213 before any disbursement; or
(v) Any depository check, including any cashier's check,
certified check, or teller's check, which is governed by the
provisions of the federal expedited funds availability act, 12
U.S.C. Sec. 4001 et seq.
(2) For purposes of this section, "item" means any instrument for the payment of money even though it is not negotiable, but does not include money.
(3) Violation of this section shall subject a title insurance
company or title insurance agent to penalties as prescribed in
Title 9A RCW and remedies as provided in chapter 19.86
RCW and shall constitute grounds for suspension or revocation of the certificate of authority of a title insurance company or the license of a title insurance agent. In addition, a
violation of this section may subject a title insurance company or a title insurance agent to penalties as prescribed in
this title. [1999 c 30 § 34.]
48.29.200 Prohibited practices. It is a violation of this
chapter for any title insurance company and title insurance
agent in the conduct of the business of an escrow agent as
defined in RCW 18.44.011 and exempt from licensing under
RCW 18.44.021(6) to:
(1) Directly or indirectly employ any scheme, device, or
artifice to defraud or mislead borrowers or lenders or to
defraud any person;
(2) Directly or indirectly engage in any unfair or deceptive act or practice toward any person;
(3) Directly or indirectly obtain property by fraud or misrepresentation;
(4) Knowingly make, publish, or disseminate any false,
deceptive, or misleading information in the conduct of the
business of escrow, or relative to the business of escrow or
relative to any person engaged therein;
(5) Knowingly receive or take possession for personal
use of any property of any escrow business, other than in payment authorized by this chapter, and with intent to defraud,
omit to make, or cause or direct to be made, a full and true
entry thereof in the books and accounts of the title insurance
company or title insurance agent;
(6) Make or concur in making any false entry, or omit or
concur in omitting to make any material entry, in its books or
accounts;
(7) Knowingly make or publish, or concur in making or
publishing any written report, exhibit, or statement of its
affairs or pecuniary condition containing any material statement which is false, or omit or concur in omitting any statement required by law to be contained therein;
(8) Willfully fail to make any proper entry in the books
of the escrow business as required by law;
(9) Fail to disclose in a timely manner to the other officers, directors, controlling persons, or employees the receipt of
service of a notice of an application for an injunction or other
legal process affecting the property or business of a title
insurance company or title insurance agent conducting an
escrow business, including an order to cease and desist or
other order of the insurance commissioner; or
(10) Fail to make any report or statement lawfully
required by the insurance commissioner or other public official. [1999 c 30 § 35.]
Chapter 48.30
Sections
48.30.010
48.30.020
48.30.030
48.30.040
48.30.050
48.30.060
48.30.070
48.30.075
48.30.080
48.30.090
48.30.100
48.30.110
48.30.120
48.30.130
48.30.140
48.30.150
48.30.155
48.29.200
[Title 48 RCW—page 174]
Chapter 48.30 RCW
UNFAIR PRACTICES AND FRAUDS
48.30.157
48.30.170
48.30.180
48.30.190
48.30.200
48.30.210
48.30.220
48.30.230
48.30.240
48.30.250
48.30.260
48.30.270
48.30.300
48.30.310
48.30.320
48.30.330
Unfair practices in general—Remedies and penalties.
Anticompact law.
False financial statements.
False information and advertising.
Advertising must show name and domicile.
Insurer name—Deceptive use prohibited.
Advertising of financial condition.
Using existence of insurance guaranty associations in advertising, etc., to sell insurance.
Defamation of insurer.
Misrepresentation of policies.
Dividends not to be guaranteed.
Contributions to candidates for insurance commissioner.
Misconduct of officers, employees.
Presumption of knowledge of director.
Rebating.
Illegal inducements.
Life or disability insurers—Insurance as inducement to purchase of goods, etc.
Charges for extra services.
Rebate—Acceptance prohibited.
"Twisting" prohibited.
Illegal dealing in premiums.
Hypothecation of premium notes.
Misrepresentation in application for insurance.
Destruction, injury, secretion, etc., of property.
False claims or proof—Penalty.
Rate wars prohibited.
Interlocking ownership, management.
Right of debtor or borrower to select agent, broker, insurer.
Public building or construction contracts—Surety bonds or
insurance—Violations concerning—Exemption.
Unfair discrimination, generally—Disability policies, specifically.
Commercial motor vehicle employment driving record not to
be considered, when.
Notice of reason for cancellation, restrictions based on handicaps.
Immunity from libel or slander.
Discrimination prohibited: RCW 48.18.480.
48.30.010
48.30.010 Unfair practices in general—Remedies
and penalties. (1) No person engaged in the business of
insurance shall engage in unfair methods of competition or in
unfair or deceptive acts or practices in the conduct of such
(2004 Ed.)
Unfair Practices and Frauds
business as such methods, acts, or practices are defined pursuant to subsection (2) of this section.
(2) In addition to such unfair methods and unfair or
deceptive acts or practices as are expressly defined and prohibited by this code, the commissioner may from time to time
by regulation promulgated pursuant to chapter 34.05 RCW,
define other methods of competition and other acts and practices in the conduct of such business reasonably found by the
commissioner to be unfair or deceptive after a review of all
comments received during the notice and comment rule-making period.
(3)(a) In defining other methods of competition and
other acts and practices in the conduct of such business to be
unfair or deceptive, and after reviewing all comments and
documents received during the notice and comment rulemaking period, the commissioner shall identify his or her reasons for defining the method of competition or other act or
practice in the conduct of insurance to be unfair or deceptive
and shall include a statement outlining these reasons as part
of the adopted rule.
(b) The commissioner shall include a detailed description of facts upon which he or she relied and of facts upon
which he or she failed to rely, in defining the method of competition or other act or practice in the conduct of insurance to
be unfair or deceptive, in the concise explanatory statement
prepared under RCW 34.05.325(6).
(c) Upon appeal the superior court shall review the findings of fact upon which the regulation is based de novo on the
record.
(4) No such regulation shall be made effective prior to
the expiration of thirty days after the date of the order by
which it is promulgated.
(5) If the commissioner has cause to believe that any person is violating any such regulation, the commissioner may
order such person to cease and desist therefrom. The commissioner shall deliver such order to such person direct or mail it
to the person by registered mail with return receipt requested.
If the person violates the order after expiration of ten days
after the cease and desist order has been received by him or
her, he or she may be fined by the commissioner a sum not to
exceed two hundred and fifty dollars for each violation committed thereafter.
(6) If any such regulation is violated, the commissioner
may take such other or additional action as is permitted under
the insurance code for violation of a regulation. [1997 c 409
§ 107; 1985 c 264 § 13; 1973 1st ex.s. c 152 § 6; 1965 ex.s. c
70 § 24; 1947 c 79 § .30.01; Rem. Supp. 1947 § 45.30.01.]
Part headings—Severability—1997 c 409: See notes following RCW
43.22.051.
Severability—1973 1st ex.s. c 152: See note following RCW
48.05.140.
48.30.020
48.30.020 Anticompact law. (1) No person shall either
within or outside of this state enter into any contract, understanding or combination with any other person to do jointly
or severally any act or engage in any practice for the purpose
of
(a) controlling the rates to be charged for insuring any
risk or any class of risks in this state; or
(b) unfairly discriminating against any person in this
state by reason of his plan or method of transacting insurance,
(2004 Ed.)
48.30.075
or by reason of his affiliation or nonaffiliation with any insurance organization; or
(c) establishing or perpetuating any condition in this
state detrimental to free competition in the business of insurance or injurious to the insuring public.
(2) This section shall not apply relative to ocean marine
and foreign trade insurances.
(3) This section shall not be deemed to prohibit the doing
of things permitted to be done in accordance with the provisions of chapter 48.19 RCW of this code.
(4) Whenever the commissioner has knowledge of any
violation of this section he shall forthwith order the offending
person to discontinue such practice immediately or show
cause to the satisfaction of the commissioner why such order
should not be complied with. If the offender is an insurer or a
licensee under this code and fails to comply with such order
within thirty days after receipt thereof, the commissioner may
forthwith revoke the offender's certificate of authority or
licenses. [1947 c 79 § .30.02; Rem. Supp. 1947 § 45.30.02.]
48.30.030
48.30.030 False financial statements. No person shall
knowingly file with any public official nor knowingly make,
publish, or disseminate any financial statement of an insurer
which does not accurately state the insurer's financial condition. [1947 c 79 § .30.03; Rem. Supp. 1947 § 45.30.03.]
48.30.040
48.30.040 False information and advertising. No person shall knowingly make, publish, or disseminate any false,
deceptive or misleading representation or advertising in the
conduct of the business of insurance, or relative to the business of insurance or relative to any person engaged therein.
[1947 c 79 § .30.04; Rem. Supp. 1947 § 45.30.04.]
48.30.050
48.30.050 Advertising must show name and domicile.
Every advertisement of, by, or on behalf of an insurer shall
set forth the name in full of the insurer and the location of its
home office or principal office, if any, in the United States (if
an alien insurer). [1947 c 79 § .30.05; Rem. Supp. 1947 §
45.30.05.]
48.30.060
48.30.060 Insurer name—Deceptive use prohibited.
No person who is not an insurer shall assume or use any name
which deceptively infers or suggests that it is an insurer.
[1947 c 79 § .30.06; Rem. Supp. 1947 § 45.30.06.]
48.30.070
48.30.070 Advertising of financial condition. (1)
Every advertisement by or on behalf of any insurer purporting to show its financial condition may be in a condensed
form but shall in substance correspond with the insurer's last
verified statement filed with the commissioner.
(2) No insurer or person in its behalf shall advertise
assets except those actually owned and possessed by the
insurer in its own exclusive right, available for the payment
of losses and claims, and held for the protection of its policyholders and creditors. [1947 c 79 § .30.07; Rem. Supp. 1947
§ 45.30.07.]
48.30.075
48.30.075 Using existence of insurance guaranty
associations in advertising, etc., to sell insurance. No person shall make, publish, disseminate, circulate, or place
[Title 48 RCW—page 175]
48.30.080
Title 48 RCW: Insurance
before the public, or cause, directly or indirectly, to be made,
published, disseminated, circulated, or placed before the public in any newspaper, magazine, or other publication, or in the
form of a notice, circular, pamphlet, letter, or poster, or over
any radio station or television station, or in any other way,
any advertisement, announcement, or statement which uses
the existence of the Washington Insurance Guaranty Association or the Washington Life and Disability Insurance Guaranty Association for the purpose of sales, solicitation, or
inducement to purchase any form of insurance covered by the
Washington Insurance Guaranty Association Act or the
Washington Life and Disability Insurance Guaranty Association Act. [1975-'76 2nd ex.s. c 109 § 9.]
48.30.080
48.30.080 Defamation of insurer. No person shall
make, publish, or disseminate, or aid, abet or encourage the
making, publishing, or dissemination of any information or
statement which is false or maliciously critical and which is
designed to injure in its reputation or business any authorized
insurer or any domestic corporation or reciprocal being
formed pursuant to this code for the purpose of becoming an
insurer. [1947 c 79 § .30.08; Rem. Supp. 1947 § 45.30.08.]
48.30.090
48.30.090 Misrepresentation of policies. No person
shall make, issue or circulate, or cause to be made, issued or
circulated any misrepresentation of the terms of any policy or
the benefits or advantages promised thereby, or the dividends
or share of surplus to be received thereon, or use any name or
title of any policy or class of policies misrepresenting the
nature thereof. [1947 c 79 § .30.09; Rem. Supp. 1947 §
45.30.09.]
48.30.100
48.30.100 Dividends not to be guaranteed. No
insurer, agent, broker, solicitor, or other person, shall guarantee or agree to the payment of future dividends or future
refunds of unused premiums or savings in any specific or
approximate amounts or percentages on account of any insurance contract. [1947 c 79 § .30.10; Rem. Supp. 1947 §
45.30.10.]
48.30.110
48.30.110 Contributions to candidates for insurance
commissioner. (1) No insurer or fraternal benefit society
doing business in this state shall directly or indirectly pay or
use, or offer, consent, or agree to pay or use any money or
thing of value for or in aid of any candidate for the office of
insurance commissioner; nor for reimbursement or indemnification of any person for money or property so used.
(2) Any individual who violates any provision of this
section, or who participates in, aids, abets, advises, or consents to any such violation, or who solicits or knowingly
receives any money or thing of value in violation of this section, shall be guilty of a gross misdemeanor and shall be liable to the insurer or society for the amount so contributed or
received. [1982 c 181 § 18; 1947 c 79 § .30.11; Rem. Supp.
1947 § 45.30.11.]
Severability—1982 c 181: See note following RCW 48.03.010.
48.30.120
48.30.120 Misconduct of officers, employees. No
director, officer, agent, attorney in fact, or employee of an
insurer shall:
[Title 48 RCW—page 176]
(1) Knowingly receive or possess himself of any of its
property, otherwise than in payment for a just demand, and
with intent to defraud, omit to make or to cause or direct to be
made, a full and true entry thereof in its books and accounts;
nor
(2) Make or concur in making any false entry, or concur
in omitting to make any material entry, in its books or
accounts; nor
(3) Knowingly concur in making or publishing any written report, exhibit or statement of its affairs or pecuniary condition containing any material statement which is false, or
omit or concur in omitting any statement required by law to
be contained therein; nor
(4) Having the custody or control of its books, wilfully
fail to make any proper entry in the books of the insurer as
required by law, or to exhibit or allow the same to be
inspected and extracts to be taken therefrom by any person
entitled by law to inspect the same, or take extracts therefrom; nor
(5) If a notice of an application for an injunction or other
legal process affecting or involving the property or business
of the insurer is served upon him, fail to disclose the fact of
such service and the time and place of such application to the
other directors, officers, and managers thereof; nor
(6) Fail to make any report or statement lawfully
required by a public officer. [1947 c 79 § .30.12; Rem. Supp.
1947 § 45.30.12.]
48.30.130
48.30.130 Presumption of knowledge of director. A
director of an insurer is deemed to have such knowledge of its
affairs as to enable him to determine whether any act, proceeding, or omission of its directors is a violation of any provision of this chapter. If present at a meeting of directors at
which any act, proceeding, or omission of its directors which
is a violation of any such provision occurs, he must be
deemed to have concurred therein unless at the time he causes
or in writing requires his dissent therefrom to be entered on
the minutes of the directors.
If absent from such meeting, he must be deemed to have
concurred in any such violation if the facts constituting such
violation appear on the records or minutes of the proceedings
of the board of directors, and he remains a director of the
insurer for six months thereafter without causing or in writing
requiring his dissent from such violation to be entered upon
such record or minutes. [1947 c 79 § .30.13; Rem. Supp.
1947 § 45.30.13.]
48.30.140
48.30.140 Rebating. (1) Except to the extent provided
for in an applicable filing with the commissioner then in
effect, no insurer, general agent, agent, broker, or solicitor
shall, as an inducement to insurance, or after insurance has
been effected, directly or indirectly, offer, promise, allow,
give, set off, or pay to the insured or to any employee of the
insured, any rebate, discount, abatement, or reduction of premium or any part thereof named in any insurance contract, or
any commission thereon, or earnings, profits, dividends, or
other benefit, or any other valuable consideration or inducement whatsoever which is not expressly provided for in the
policy.
(2004 Ed.)
Unfair Practices and Frauds
(2) Subsection (1) of this section shall not apply as to
commissions paid to a licensed agent, general agent, broker,
or solicitor for insurance placed on that person's own property or risks.
(3) This section shall not apply to the allowance by any
marine insurer, or marine insurance agent, general agent, broker, or solicitor, to any insured, in connection with marine
insurance, of such discount as is sanctioned by custom among
marine insurers as being additional to the agent's or broker's
commission.
(4) This section shall not apply to advertising or promotional programs conducted by insurers, agents, or brokers
whereby prizes, goods, wares, or merchandise, not exceeding
twenty-five dollars in value per person in the aggregate in any
twelve month period, are given to all insureds or prospective
insureds under similar qualifying circumstances.
(5) This section does not apply to an offset or reimbursement of all or part of a fee paid to a broker as provided in
RCW 48.17.270. [1994 c 203 § 3; 1990 1st ex.s. c 3 § 8; 1985
c 264 § 14; 1975-'76 2nd ex.s. c 119 § 3; 1947 c 79 § .30.14;
Rem. Supp. 1947 § 45.30.14.]
48.30.150
48.30.150 Illegal inducements. No insurer, general
agent, agent, broker, solicitor, or other person shall, as an
inducement to insurance, or in connection with any insurance
transaction, provide in any policy for, or offer, or sell, buy, or
offer or promise to buy or give, or promise, or allow to, or on
behalf of, the insured or prospective insured in any manner
whatsoever:
(1) Any shares of stock or other securities issued or at
any time to be issued on any interest therein or rights thereto;
or
(2) Any special advisory board contract, or other contract, agreement, or understanding of any kind, offering, providing for, or promising any profits or special returns or special dividends; or
(3) Any prizes, goods, wares, or merchandise of an
aggregate value in excess of twenty-five dollars.
This section shall not be deemed to prohibit the sale or
purchase of securities as a condition to or in connection with
surety insurance insuring the performance of an obligation as
part of a plan of financing found by the commissioner to be
designed and operated in good faith primarily for the purpose
of such financing, nor shall it be deemed to prohibit the sale
of redeemable securities of a registered investment company
in the same transaction in which life insurance is sold. [1990
1st ex.s. c 3 § 9; 1975-'76 2nd ex.s. c 119 § 4; 1957 c 193 §
18; 1947 c 79 § .30.15; Rem. Supp. 1947 § 45.30.15.]
48.30.155
48.30.155 Life or disability insurers—Insurance as
inducement to purchase of goods, etc. No life or disability
insurer shall directly or indirectly participate in any plan to
offer or effect any kind or kinds of insurance in this state as
an inducement to the purchase by the public of any goods,
securities, commodities, services or subscriptions to publications. This section shall not apply to group or blanket insurance issued pursuant to this code. [1957 c 193 § 19.]
48.30.157
48.30.157 Charges for extra services. Notwithstanding the provisions of RCW 48.30.140, 48.30.150, and
(2004 Ed.)
48.30.190
48.30.155, the commissioner may permit an agent or broker
to enter into reasonable arrangements with insureds and prospective insureds to charge a reduced fee in situations where
services that are charged for are provided beyond the scope of
services customarily provided in connection with the solicitation and procurement of insurance, so that an overall charge
to an insured or prospective insured is reasonable taking into
account receipt of commissions and fees and their relation,
proportionally, to the value of the total work performed.
[1988 c 248 § 17; 1983 c 3 § 154; 1979 ex.s. c 199 § 10.]
48.30.170
48.30.170 Rebate—Acceptance prohibited. (1) No
insured person shall receive or accept, directly or indirectly,
any rebate of premium or part thereof, or any favor, advantage, share in dividends, or other benefits, or any valuable
consideration or inducement not specified or provided for in
the policy, or any commission on any insurance policy to
which he or she is not lawfully entitled as a licensed agent,
broker, or solicitor. The retention by the nominal policyholder in any group life insurance contract of any part of any
dividend or reduction of premium thereon contrary to the
provisions of RCW 48.24.260, shall be deemed the acceptance and receipt of a rebate and shall be punishable as provided by this code.
(2) The amount of insurance whereon the insured has so
received or accepted any such rebate or any such commission, other than as to life or disability insurances, shall be
reduced in the proportion that the amount or value of the
rebate or commission bears to the premium for such insurance. In addition to such reduction of insurance, if any, any
such insured shall be liable to a fine of not more than two
hundred dollars.
(3) This section shall not apply to an offset or reimbursement of all or part of a fee paid to a broker as provided in
RCW 48.17.270. [1994 c 203 § 4; 1947 c 79 § .30.17; Rem.
Supp. 1947 § 45.30.17.]
48.30.180
48.30.180 "Twisting" prohibited. No person shall by
misrepresentations or by misleading comparisons, induce or
tend to induce any insured to lapse, terminate, forfeit, surrender, retain, or convert any insurance policy. [1947 c 79 §
.30.18; Rem. Supp. 1947 § 45.30.18.]
48.30.190
48.30.190 Illegal dealing in premiums. (1) No person
shall wilfully collect any sum as premium for insurance,
which insurance is not then provided or is not in due course
to be provided by an insurance policy issued by an insurer as
authorized by this code.
(2) No person shall wilfully collect as premium for insurance any sum in excess of the amount actually expended or in
due course is to be expended for insurance applicable to the
subject on account of which the premium was collected.
(3) No person shall wilfully or knowingly fail to return to
the person entitled thereto within a reasonable length of time
any sum collected as premium for insurance in excess of the
amount actually expended for insurance applicable to the
subject on account of which the premium was collected.
(4) Each violation of this section which does not amount
to a felony shall constitute a misdemeanor. [1947 c 79 §
.30.19; Rem. Supp. 1947 § 45.30.19.]
[Title 48 RCW—page 177]
48.30.200
Title 48 RCW: Insurance
48.30.200
48.30.200 Hypothecation of premium notes. It shall
be unlawful for any insurer or its representative, or any agent
or broker, to hypothecate, sell, or dispose of any promissory
note, received in payment for any premium or part thereof on
any contract of life insurance or of disability insurance
applied for, prior to delivery of the policy to the applicant.
[1947 c 79 § .30.20; Rem. Supp. 1947 § 45.30.20.]
48.30.210
48.30.210 Misrepresentation in application for insurance. A person who knowingly makes a false or misleading
statement or impersonation, or who willfully fails to reveal a
material fact, in or relative to an application for insurance to
an insurer, is guilty of a gross misdemeanor, and the license
of any such person may be revoked. [1995 c 285 § 18; 1990
1st ex.s. c 3 § 10; 1947 c 79 § .30.21; Rem. Supp. 1947 §
45.30.21.]
Effective date—1995 c 285: See RCW 48.30A.900.
48.30.220
48.30.220 Destruction, injury, secretion, etc., of
property. Any person, who, with intent to defraud or prejudice the insurer thereof, burns or in any manner injures,
destroys, secretes, abandons, or disposes of any property
which is insured at the time against loss or damage by fire,
theft, embezzlement, or any other casualty, whether the same
be the property of or in the possession of such person or any
other person, under circumstances not making the offense
arson in the first degree, is guilty of a class C felony. [1995 c
285 § 19; 1965 ex.s. c 70 § 25; 1947 c 79 § .30.22; Rem.
Supp. 1947 § 45.30.22.]
Effective date—1995 c 285: See RCW 48.30A.900.
48.30.230
48.30.230 False claims or proof—Penalty. (1) It is
unlawful for any person, knowing it to be such, to:
(a) Present, or cause to be presented, a false or fraudulent
claim, or any proof in support of such a claim, for the payment of a loss under a contract of insurance; or
(b) Prepare, make, or subscribe any false or fraudulent
account, certificate, affidavit, or proof of loss, or other document or writing, with intent that it be presented or used in
support of such a claim.
(2)(a) Except as provided in (b) of this subsection, a violation of this section is a gross misdemeanor.
(b) If the claim is in excess of one thousand five hundred
dollars, the violation is a class C felony punishable according
to chapter 9A.20 RCW. [2003 c 53 § 270; 1990 1st ex.s. c 3
§ 11; 1947 c 79 § .30.23; Rem. Supp. 1947 § 45.30.23.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
48.30.240
48.30.240 Rate wars prohibited. (1) Any insurer
which precipitates, or aids in precipitating or conducting a
rate war and by so doing writes or issues a policy of insurance
at a less rate than permitted under its schedules filed with the
commissioner, or below the rate deemed by him to be proper
and adequate to cover the class of risk insured, shall have its
certificate of authority to do business in this state suspended
until such time as the commissioner is satisfied that it is
charging a proper rate of premium.
(2) Any insurer which has precipitated, or aided in precipitating or conducting a rate war for the purpose of punish[Title 48 RCW—page 178]
ing or eliminating competitors or stifling competition, or
demoralizing the business, or for any other purpose, and has
ordered the cancellation or rewriting of policies at a rate
lower than that provided by its rating schedules where such
rate war is not in operation, and has paid or attempted to pay
to the insured any return premiums, on any risk so to be
rewritten, on which its agent has received or is entitled to
receive his regular commission, such insurer shall not be
allowed to charge back to such agent any portion of his commission on the ground that the same has not been earned.
[1947 c 79 § .30.24; Rem. Supp. 1947 § 45.30.24.]
48.30.250
48.30.250 Interlocking ownership, management. (1)
Any insurer may retain, invest in or acquire the whole or any
part of the capital stock of any other insurer or insurers, or
have a common management with any other insurer or insurers, unless such retention, investment, acquisition or common
management is inconsistent with any other provision of this
title, or unless by reason thereof the business of such insurers
with the public is conducted in a manner which substantially
lessens competition generally in the insurance business or
tends to create a monopoly therein.
(2) Any person otherwise qualified may be a director of
two or more insurers which are competitors, unless the effect
thereof is to substantially lessen competition between insurers generally or tends to create a monopoly.
(3) If the commissioner finds, after a hearing thereon,
that there is violation of this section he shall order all such
persons and insurers to cease and desist from such violation
within such time, or extension thereof, as may be specified in
such order. [1949 c 190 § 34; Rem. Supp. 1949 § 45.30.25.]
48.30.260
48.30.260 Right of debtor or borrower to select
agent, broker, insurer. (1) Every debtor or borrower, when
property insurance of any kind is required in connection with
the debt or loan, shall have reasonable opportunity and choice
in the selection of the agent, broker, and insurer through
whom such insurance is to be placed; but only if the insurance is properly provided for the protection of the creditor or
lender, whether by policy or binder, not later than at commencement of risk as to such property as respects such creditor or lender, and in the case of renewal of insurance, only if
the renewal policy, or a proper binder therefor containing a
brief description of the coverage bound and the identity of the
insurer in which the coverage is bound, is delivered to the
creditor or lender not later than thirty days prior to the
renewal date.
(2) Every person who lends money or extends credit and
who solicits insurance on real and personal property must
explain to the borrower in prominently displayed writing that
the insurance related to such loan or credit extension may be
purchased from an insurer or agent of the borrower's choice,
subject only to the lender's right to reject a given insurer or
agent as provided in subsection (3)(b) of this section.
(3) No person who lends money or extends credit may:
(a) Solicit insurance for the protection of property, after
a person indicates interest in securing a loan or credit extension, until such person has received a commitment from the
lender as to a loan or credit extension;
(2004 Ed.)
Unfair Practices and Frauds
(b) Unreasonably reject a contract of insurance furnished
by the borrower for the protection of the property securing
the credit or lien. A rejection shall not be deemed unreasonable if it is based on reasonable standards, uniformly applied,
relating to the extent of coverage required and the financial
soundness and the services of an insurer. Such standards shall
not discriminate against any particular type of insurer, nor
shall such standards call for rejection of an insurance contract
because the contract contains coverage in addition to that
required in the credit transaction;
(c) Require that any borrower, mortgagor, purchaser,
insurer, broker, or agent pay a separate charge, in connection
with the handling of any contract of insurance required as
security for a loan, or pay a separate charge to substitute the
insurance policy of one insurer for that of another. This subsection does not include the interest which may be charged on
premium loans or premium advancements in accordance with
the terms of the loan or credit document;
(d) Use or disclose, without the prior written consent of
the borrower, mortgagor, or purchaser taken at a time other
than the making of the loan or extension of credit, information relative to a contract of insurance which is required by
the credit transaction, for the purpose of replacing such insurance;
(e) Require any procedures or conditions of duly
licensed agents, brokers, or insurers not customarily required
of those agents, brokers, or insurers affiliated or in any way
connected with the person who lends money or extends
credit; or
(f) Require property insurance in an amount in excess of
the amount which could reasonably be expected to be paid
under the policy, or combination of policies, in the event of a
loss.
(4) Nothing contained in this section shall prevent a person who lends money or extends credit from placing insurance on real or personal property in the event the mortgagor,
borrower, or purchaser has failed to provide required insurance in accordance with the terms of the loan or credit document.
(5) Nothing contained in this section shall apply to credit
life or credit disability insurance. [1990 1st ex.s. c 3 § 13;
1988 c 248 § 18; 1984 c 6 § 2; 1977 c 61 § 1; 1957 c 193 §
20.]
48.30.270
48.30.270 Public building or construction contracts—Surety bonds or insurance—Violations concerning—Exemption. (Expires December 31, 2006.) (1) No
officer or employee of this state, or of any public agency,
public authority or public corporation except a public corporation or public authority created pursuant to agreement or
compact with another state, and no person acting or purporting to act on behalf of such officer or employee, or public
agency or public authority or public corporation, shall, with
respect to any public building or construction contract which
is about to be, or which has been competitively bid, require
the bidder to make application to, or to furnish financial data
to, or to obtain or procure, any of the surety bonds or contracts of insurance specified in connection with such contract,
or specified by any law, general, special or local, from a particular insurer or agent or broker.
(2004 Ed.)
48.30.270
(2) No such officer or employee or any person, acting or
purporting to act on behalf of such officer or employee shall
negotiate, make application for, obtain or procure any of such
surety bonds or contracts of insurance, except contracts of
insurance for builder's risk or owner's protective liability,
which can be obtained or procured by the bidder, contractor
or subcontractor.
(3) This section shall not be construed to prevent the
exercise by such officer or employee on behalf of the state or
such public agency, public authority, or public corporation of
its right to approve the form, sufficiency or manner or execution of the surety bonds or contracts of insurance furnished by
the insurer selected by the bidder to underwrite such bonds,
or contracts of insurance.
(4) Any provisions in any invitation for bids, or in any of
the contract documents, in conflict with this section are
declared to be contrary to the public policy of this state.
(5) A violation of this section shall be subject to the penalties provided by RCW 48.01.080.
(6) This section shall not apply to:
(a) The public nonprofit corporation authorized under
RCW 67.40.020;
(b) Projects in excess of one hundred million dollars for
port districts formed under chapter 53.04 RCW;
(c) A regional transit authority authorized under RCW
81.112.030; or
(d) Projects in excess of one hundred million dollars for
counties with a population over one million, for projects
administered for public hospitals. [2003 c 323 § 1. Prior:
2000 2nd sp.s. c 4 § 33; 2000 c 143 § 2; 1983 2nd ex.s. c 1 §
6; 1967 ex.s. c 12 § 3.]
Expiration date—2003 c 323 § 1: "Section 1 of this act expires
December 31, 2006." [2003 c 323 § 3.]
Expiration date—2000 c 143: See note following RCW 53.08.145.
State convention and trade center—Corporation exempt: RCW 67.40.020.
48.30.270 Public building or construction contracts—Surety bonds or insurance—Violations concerning—Exemption. (Effective December 31, 2006.) (1) No
officer or employee of this state, or of any public agency,
public authority or public corporation except a public corporation or public authority created pursuant to agreement or
compact with another state, and no person acting or purporting to act on behalf of such officer or employee, or public
agency or public authority or public corporation, shall, with
respect to any public building or construction contract which
is about to be, or which has been competitively bid, require
the bidder to make application to, or to furnish financial data
to, or to obtain or procure, any of the surety bonds or contracts of insurance specified in connection with such contract,
or specified by any law, general, special or local, from a particular insurer or agent or broker.
(2) No such officer or employee or any person, acting or
purporting to act on behalf of such officer or employee shall
negotiate, make application for, obtain or procure any of such
surety bonds or contracts of insurance, except contracts of
insurance for builder's risk or owner's protective liability,
which can be obtained or procured by the bidder, contractor
or subcontractor.
(3) This section shall not be construed to prevent the
exercise by such officer or employee on behalf of the state or
48.30.270
[Title 48 RCW—page 179]
48.30.300
Title 48 RCW: Insurance
such public agency, public authority, or public corporation of
its right to approve the form, sufficiency or manner or execution of the surety bonds or contracts of insurance furnished by
the insurer selected by the bidder to underwrite such bonds,
or contracts of insurance.
(4) Any provisions in any invitation for bids, or in any of
the contract documents, in conflict with this section are
declared to be contrary to the public policy of this state.
(5) A violation of this section shall be subject to the penalties provided by RCW 48.01.080.
(6) This section shall not apply to:
(a) The public nonprofit corporation authorized under
RCW 67.40.020;
(b) A regional transit authority authorized under RCW
81.112.030; or
(c) Projects in excess of one hundred million dollars for
counties with a population over one million, for projects
administered for public hospitals. [2003 c 323 § 2; 2000 2nd
sp.s. c 4 § 33; 1983 2nd ex.s. c 1 § 6; 1967 ex.s. c 12 § 3.]
Effective date—2003 c 323 § 2: "Section 2 of this act takes effect
December 31, 2006." [2003 c 323 § 4.]
State convention and trade center—Corporation exempt: RCW 67.40.020.
48.30.300
48.30.300 Unfair discrimination, generally—Disability policies, specifically. Notwithstanding any provision
contained in Title 48 RCW to the contrary:
(1) No person or entity engaged in the business of insurance in this state shall refuse to issue any contract of insurance or cancel or decline to renew such contract because of
the sex or marital status, or the presence of any sensory, mental, or physical handicap of the insured or prospective
insured. The amount of benefits payable, or any term, rate,
condition, or type of coverage shall not be restricted, modified, excluded, increased or reduced on the basis of the sex or
marital status, or be restricted, modified, excluded or reduced
on the basis of the presence of any sensory, mental, or physical handicap of the insured or prospective insured. Subject to
the provisions of subsection (2) of this section these provisions shall not prohibit fair discrimination on the basis of sex,
or marital status, or the presence of any sensory, mental, or
physical handicap when bona fide statistical differences in
risk or exposure have been substantiated.
(2) With respect to disability policies issued or renewed
on and after July 1, 1994, that provide coverage against loss
arising from medical, surgical, hospital, or emergency care
services:
(a) Policies shall guarantee continuity of coverage. Such
provision, which shall be included in every policy, shall provide that:
(i) The policy may be canceled or nonrenewed without
the prior written approval of the commissioner only for nonpayment of premium or as permitted under RCW 48.18.090;
and
(ii) The policy may be canceled or nonrenewed because
of a change in the physical or mental condition or health of a
covered person only with the prior written approval of the
commissioner. Such approval shall be granted only when the
insurer has discharged its obligation to continue coverage for
such person by obtaining coverage with another insurer,
health care service contractor, or health maintenance organi[Title 48 RCW—page 180]
zation, which coverage is comparable in terms of premiums
and benefits as defined by rule of the commissioner.
(b) It is an unfair practice for a disability insurer to modify the coverage provided or rates applying to an in-force disability insurance policy and to fail to make such modification
in all such issued and outstanding policies.
(c) Subject to rules adopted by the commissioner, it is an
unfair practice for a disability insurer to:
(i) Cease the sale of a policy form unless it has received
prior written authorization from the commissioner and has
offered all policyholders covered under such discontinued
policy the opportunity to purchase comparable coverage
without health screening; or
(ii) Engage in a practice that subjects policyholders to
rate increases on discontinued policy forms unless such policyholders are offered the opportunity to purchase comparable
coverage without health screening.
The insurer may limit an offer of comparable coverage
without health screening to a period not less than thirty days
from the date the offer is first made. [1993 c 492 § 287;
1975-'76 2nd ex.s. c 119 § 7.]
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
Short title—Severability—Savings—Captions not law—Reservation of legislative power—Effective dates—1993 c 492: See RCW
43.72.910 through 43.72.915.
48.30.310
48.30.310 Commercial motor vehicle employment
driving record not to be considered, when. When an individual applies for a policy of casualty insurance providing
either automobile liability coverage, uninsured motorist coverage, automobile medical payments coverage, or automobile
physical damage coverage on an individually owned passenger vehicle or a renewal of such policy, an insurer shall not
consider the applicant's commercial motor vehicle employment driving record in determining whether the policy will be
issued or renewed or in determining the rates for the policy.
An insurer shall not cancel such policy or discriminate in
regard to other terms or conditions of the policy based upon
the applicant's commercial motor vehicle employment driving record.
"Employment driving record" means that record maintained by the director pertaining to motor vehicle accidents or
convictions for violation of motor vehicle laws while the
applicant is driving a commercial motor vehicle as an
employee of another. [1977 ex.s. c 356 § 3.]
48.30.320
48.30.320 Notice of reason for cancellation, restrictions based on handicaps. Every authorized insurer, upon
canceling, denying, or refusing to renew any individual life,
individual disability, homeowner, dwelling fire, or private
passenger automobile insurance policy, shall, upon written
request, directly notify in writing the applicant or insured, as
the case may be, of the reasons for the action by the insurer.
Any benefits, terms, rates, or conditions of such an insurance
contract which are restricted, excluded, modified, increased,
or reduced because of the presence of a sensory, mental, or
physical handicap shall, upon written request, be set forth in
writing and supplied to the insured. The written communications required by this section shall be phrased in simple language which is readily understandable to a person of average
intelligence, education, and reading ability. [1979 c 133 § 1.]
(2004 Ed.)
Insurance Fraud
48.30.330
48.30.330 Immunity from libel or slander. With
respect to contracts of insurance as defined in RCW
48.30.320, there shall be no liability on the part of, and no
cause of action of any nature shall arise against, the insurance
commissioner, the commissioner's agents, or members of the
commissioner's staff, or against any insurer, its authorized
representative, its agents, its employees, furnishing to the
insurer information as to reasons for cancellation or refusal to
issue or renew, for libel or slander on the basis of any statement made by any of them in any written notice of cancellation or refusal to issue or renew, or in any other communications, oral or written, specifying the reasons for cancellation
or refusal to issue or renew or the providing of information
pertaining thereto, or for statements made or evidence submitted in any hearing conducted in connection therewith.
[1979 c 133 § 2.]
Chapter 48.30A
Chapter 48.30A RCW
INSURANCE FRAUD
Sections
48.30A.005
48.30A.010
48.30A.015
48.30A.020
48.30A.030
48.30A.035
48.30A.040
48.30A.045
48.30A.050
48.30A.055
48.30A.060
48.30A.065
48.30A.070
48.30A.900
48.30A.005
Findings—Intent.
Definitions.
Unlawful acts—Penalties.
Defenses to proceedings under this chapter.
Injunction available—Remedies—Costs—Attorneys' fees—
Degree of proof—Time limit.
Detrimental judgment—Written notification to appropriate
regulatory or disciplinary body or agency.
Violation—Cause for discipline—Unprofessional conduct—
Regulatory penalty.
Insurance antifraud plan—File plan and changes with commissioner—Exemptions.
Insurance antifraud plan—Specific procedures.
Insurance antifraud plan—Review—Disapproval—Notice—
Audit to ensure compliance.
Insurance antifraud plan—Actions taken by insurer—
Report—Not public records.
Insurance antifraud plan—Failure to file or exercise good
faith—Penalty—Failure to follow plan—Civil penalty.
Duty to investigate, enforce, and prosecute violations.
Effective date—1995 c 285.
48.30A.005 Findings—Intent. The legislature finds
that the business of insurance is one affected by the public
interest, requiring that all persons be actuated by good faith,
abstain from deception, and practice honesty and equity in all
insurance matters. The payment of kickbacks, bribes, or
rebates for referrals to service providers, as has been occurring with increasing regularity in this state, results in inflated
or fraudulent insurance claims, results in greater insurance
costs for all citizens, and is contrary to the public interest. In
particular, the process whereby "cappers" buy and sell insurance claims without the controls of professional licensing and
discipline creates a fertile ground for illegal activity and has,
in this state, resulted in frauds committed against injured
claimants, insurance companies, and the public. Operations
that engage in this practice have some or all of the following
characteristics: Cappers, acting under an agreement or
understanding that they will receive a pecuniary benefit, refer
claimants with real or imaginary claims, injuries, or property
damage to service providers. This sets off a chain of events
that corrupts both the provision of services and casualty or
property insurance for all citizens. This chain of events
includes false claims for services through the use of false estimates of repair; false prescriptions of care or rehabilitative
(2004 Ed.)
48.30A.015
therapy; services that either do not occur or are provided by
persons unqualified to provide the services; submission of
false claims; submission of and demands for fraudulent costs,
lost wages, pain and suffering, and the like; and other devices
meant to result in false claims under casualty or property
insurance policies or contracts, whether insured or selfinsured, and either directly or through subrogation.
The legislature finds that combatting these practices
requires laws carefully fashioned to identify practices that
mimic customary business practices. The legislature does not
intend this law to be used against medical and other business
referral practices that are otherwise legal, customary, and
unrelated to the furtherance of some or all of the corrupt practices identified in this chapter. [1995 c 285 § 1.]
48.30A.010
48.30A.010 Definitions. The definitions set forth in
this section apply throughout this chapter unless the context
clearly indicates otherwise.
(1) "Casualty or property insurance" includes both the
insurance under which a claim is filed and insurance that
receives a claim through subrogation, and means insurance as
defined in RCW 48.11.040 and 48.11.070 and includes selfinsurance arrangements.
(2) "Claimant" means a person who has or is believed by
an actor to have an insurance claim.
(3) "Group-buying arrangement" means an arrangement
made by a membership organization having one hundred or
more members in which the organization asks for or receives
valuable consideration in exchange for referring its members
to a service provider; the consideration asked for or received
will be or is used to benefit the entire organization, not just
one or more individuals in positions of power or influence in
the organization; and reasonable efforts are made to disclose
to affected members of the organization the nature of the
referral relationship, including the nature, extent, amount,
and use of the consideration.
(4) "Health care services" means a service provided to a
claimant for treatment of physical or mental illness or injury
arising in whole or substantial part from trauma.
(5) "Insurance claim" means a claim for payment, benefits, or damages under a contract, plan, or policy of casualty
or property insurance.
(6) "Legal provider" means an active member in good
standing of the Washington state bar association, and any
other person authorized by the Washington state supreme
court to engage in full or limited practice of law.
(7) "Service provider" means a person who directly or
indirectly provides, advertises, or otherwise claims to provide
services.
(8) "Services" means health care services, motor vehicle
body or other motor vehicle repair, and preparing, processing, presenting, or negotiating an insurance claim.
(9) "Trauma" means a physical injury or wound caused
by external force or violence. [1995 c 285 § 2.]
48.30A.015
48.30A.015 Unlawful acts—Penalties. (1) It is unlawful for a person:
(a) Knowing that the payment is for the referral of a
claimant to a service provider, either to accept payment from
[Title 48 RCW—page 181]
48.30A.020
Title 48 RCW: Insurance
a service provider or, being a service provider, to pay
another; or
(b) To provide or claim or represent to have provided
services to a claimant, knowing the claimant was referred in
violation of (a) of this subsection.
(2) It is unlawful for a service provider to engage in a
regular practice of waiving, rebating, giving, paying, or offering to waive, rebate, give, or pay all or any part of a claimant's casualty or property insurance deductible.
(3) A violation of this section constitutes trafficking in
insurance claims.
(4)(a) Trafficking in insurance claims is a gross misdemeanor for a single violation.
(b) Each subsequent violation, whether alleged in the
same or in subsequent prosecutions, is a class C felony.
[2003 c 53 § 271; 1995 c 285 § 3.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
48.30A.020 Defenses to proceedings under this chapter. In a proceeding under this chapter, it is a defense if
proven by the defendant by a preponderance of the evidence
that, at the time of the offense:
(1) The conduct alleged was authorized by the rules of
professional conduct or the admission to practice rules for
lawyers as adopted by the state supreme court, Washington
business and professions licensing statutes, or rules adopted
by the secretary of health or the director of licensing;
(2) The payment was an incidental nonmonetary gift or
gratuity, or was purely social in nature;
(3) The conduct alleged was an exercise of a group-buying arrangement;
(4) The conduct alleged was a legal provider paying a
service provider's bills from the proceeds of an insurance
claim that included the bills;
(5) The conduct alleged was a legal provider paying for
services of an expert witness, including reports, consultation,
and testimony; or
(6) The conduct alleged was a service provider's purchase of advertising from an unrelated business that provides
referrals from advertising for groups of ten or more service
providers that are not related to the advertising business and
not related to each other. [1995 c 285 § 4.]
48.30A.020
48.30A.035
48.30A.035 Detrimental judgment—Written notification to appropriate regulatory or disciplinary body or
agency. Whenever a service provider or a person licensed by
the state in a business or profession is convicted, enjoined, or
found liable for damages or a civil penalty or other equitable
relief under RCW 48.30A.030, the attorney general or the
prosecuting attorney shall provide written notification of the
judgment to the appropriate regulatory or disciplinary body
or agency. [1995 c 285 § 7.]
48.30A.040
48.30A.040 Violation—Cause for discipline—Unprofessional conduct—Regulatory penalty. A violation of this
chapter is cause for discipline and constitutes unprofessional
conduct that could result in any regulatory penalty provided
by law, including refusal, revocation, or suspension of a business or professional license, or right or admission to practice.
Conduct that constitutes a violation of this chapter is unprofessional conduct in violation of RCW 18.130.180. [1995 c
285 § 8.]
48.30A.045
48.30A.045 Insurance antifraud plan—File plan and
changes with commissioner—Exemptions. (1) Each
insurer licensed to write direct insurance in this state, except
those exempted in subsection (2) of this section, shall institute and maintain an insurance antifraud plan. An insurer
licensed on July 1, 1995, shall file its antifraud plan with the
insurance commissioner no later than December 31, 1995.
An insurer licensed after July 1, 1995, shall file its antifraud
plan within six months of licensure. An insurer shall file any
change to the antifraud plan with the insurance commissioner
within thirty days after the plan has been modified.
(2) This section does not apply to health carriers, as
defined in RCW 48.43.005, life insurers, or title insurers; or
property or casualty insurers with annual gross written medical malpractice insurance premiums in this state that exceed
fifty percent of their total annual gross written premiums in
this state; or all credit-related insurance written in connection
with a credit transaction in which the creditor is named as a
beneficiary or loss payee under the policy except vendor single-interest or collateral protection coverage as defined in
RCW 48.22.110(4). [1997 c 92 § 1; 1995 c 285 § 9.]
48.30A.050
48.30A.030 Injunction available—Remedies—
Costs—Attorneys' fees—Degree of proof—Time limit.
Independent of authority granted to the attorney general, the
prosecuting attorney may petition the superior court for an
injunction against a person who has violated this chapter.
Remedies in an injunctive action brought by a prosecuting
attorney are limited to an order enjoining, restraining, or preventing the doing of any act or practice that constitutes a violation of this chapter and imposing a civil penalty of up to
five thousand dollars for each violation. The prevailing party
in the action may, in the discretion of the court, recover its
reasonable investigative costs and the costs of the action
including a reasonable attorney's fee. The degree of proof
required in an action brought under this section is a preponderance of the evidence. An action under this section must be
brought within three years after the violation of this chapter
occurred. [1995 c 285 § 6.]
48.30A.030
[Title 48 RCW—page 182]
48.30A.050 Insurance antifraud plan—Specific procedures. An insurer's antifraud plan must establish specific
procedures to:
(1) Prevent insurance fraud, including internal fraud
involving employees or company representatives, fraud
resulting from misrepresentation on applications for insurance coverage, and claims fraud;
(2) Review claims in order to detect evidence of possible
insurance fraud and to investigate claims where fraud is suspected;
(3) Report fraud to appropriate law enforcement agencies and cooperate with those agencies in their prosecution of
fraud cases;
(4) Undertake civil actions against persons who have
engaged in fraudulent activities;
(5) Train company employees and agents in the detection
and prevention of fraud. [1995 c 285 § 10.]
(2004 Ed.)
Mergers, Rehabilitation, Liquidation
48.30A.055
48.30A.055 Insurance antifraud plan—Review—
Disapproval—Notice—Audit to ensure compliance. If
after review of an insurer's antifraud plan, the commissioner
finds that the plan does not comply with RCW 48.30A.050,
the commissioner may disapprove the antifraud plan. Notice
of disapproval must include a statement of the specific reasons for disapproval. The insurer shall refile a plan disapproved by the commissioner within sixty days of the date of
the notice of disapproval. The commissioner may audit insurers to ensure compliance with antifraud plans. [1995 c 285 §
11.]
48.30A.060
48.30A.060 Insurance antifraud plan—Actions
taken by insurer—Report—Not public records. Each
insurer shall annually provide to the insurance commissioner
a summary report on actions taken under its antifraud plan to
prevent and combat insurance fraud. The report must also
include, but not be limited to, measures taken to protect and
ensure the integrity of electronic data processing-generated
data and manually compiled data, statistical data on the
amount of resources committed to combatting fraud, and the
amount of fraud identified and recovered during the reporting
period. The antifraud plans and summary of the insurer's antifraud activities are not public records and are exempt from
chapter 42.17 RCW, are proprietary, are not subject to public
examination, and are not discoverable or admissible in civil
litigation. [1995 c 285 § 12.]
48.31.040
48.31.045
48.31.050
48.31.060
48.31.070
48.31.080
48.31.090
48.31.100
48.31.105
48.31.111
48.31.115
48.31.121
48.31.125
48.31.131
48.31.135
48.31.141
48.31.145
48.31.151
48.31.155
48.31.161
48.31.165
48.30A.065
48.30A.065 Insurance antifraud plan—Failure to file
or exercise good faith—Penalty—Failure to follow plan—
Civil penalty. An insurer that fails to file a timely antifraud
plan or who does not make a good faith attempt to file an antifraud plan that complies with RCW 48.30A.050, is subject to
the penalty provisions of RCW 48.01.080, but no penalty
may be imposed for the first filing made by an insurer under
this chapter. An insurer that fails to follow the antifraud plan
is subject to a civil penalty not to exceed ten thousand dollars
for each violation, at the discretion of the commissioner after
consideration of all relevant factors, including the willfulness
of the violation. [1995 c 285 § 13.]
48.30A.070
48.30A.070 Duty to investigate, enforce, and prosecute violations. It is the duty of all peace officers, law
enforcement officers, and law enforcement agencies within
this state to investigate, enforce, and prosecute all violations
of this chapter. [1995 c 285 § 14.]
48.30A.900
48.30A.900 Effective date—1995 c 285. This act is
necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its
existing public institutions, and shall take effect July 1, 1995.
[1995 c 285 § 39.]
Chapter 48.31 RCW
MERGERS, REHABILITATION, LIQUIDATION
Chapter 48.31
Sections
48.31.010
48.31.020
48.31.021
48.31.030
(2004 Ed.)
Merger or consolidation.
"Insurer"—Scope of term.
Insurer—Self-funded multiple employer welfare arrangement.
Rehabilitation—Grounds.
48.31.171
48.31.175
48.31.181
48.31.184
48.31.185
48.31.190
48.31.200
48.31.210
48.31.220
48.31.230
48.31.240
48.31.260
48.31.270
48.31.280
48.31.290
48.31.300
48.31.310
48.31.320
48.31.330
48.31.340
48.31.350
48.31.360
48.31.010
Rehabilitation—Order—Termination.
Rehabilitation order against insurer—Insurer is party to action
or proceeding—Stay the action—Statute of limitations or
defense of laches.
Liquidation—Grounds.
Liquidation—Order.
Liquidation—Alien insurers.
Conservation of assets—Foreign insurers.
Conservation of assets—Alien insurers.
Foreign insurers—Conservation, ancillary proceedings.
Conduct of proceedings—Requirement to cooperate—Definitions—Violations—Penalties.
Commencement of delinquency proceeding by commissioner—Jurisdiction of courts.
Immunity from suit and liability—Persons entitled to protection.
Court order for a formal delinquency proceeding—Commissioner may petition—Insurer may petition for hearing and
review.
Order of liquidation—Termination of coverage.
Appointment of liquidator—Actions at law or equity—Statute
of limitations or defense of laches.
Recovery from reinsurers—Not reduced by delinquency proceedings—Direct payment to insured.
Responsibility for payment of a premium—Earned or
unearned premium—Violations—Penalties—Rights of
party aggrieved.
Liquidator denies claim—Written notice—Objections of
claimant—Court hearing.
Creditor's claim against insurer is secured by other person—
Subrogated rights—Agreements concerning distributions.
Unclaimed funds—Liquidator's application for discharge—
Duties of state treasurer.
After termination of liquidation proceeding—Good cause to
reopen proceedings.
Domiciliary receiver not appointed—Court order to liquidate—Notice—Domiciliary receiver appointed in other
state.
Domiciliary liquidator—Reciprocal state—Nonreciprocal
state—Commissioner's duties.
Foreign or alien insurer—Property located in this state—Commissioner's discretion.
Liquidation proceedings—One or more reciprocal states—
Distributions—Special deposit claims—Secured claims.
Ancillary receiver in another state or foreign country—Failure
to transfer assets.
Receiver's proposal to disperse assets upon liquidation—
Application for approval—Contents of proposal—Notice of
application.
Commencement of proceeding—Venue—Effect of appellate
review.
Injunctions.
Change of venue.
Deposit of moneys collected.
Exemption from filing fees.
Borrowing on pledge of assets.
Liquidation—Date rights, liabilities fixed.
Voidable transfers.
Priority and order of distribution of claims.
Offsets.
Allowance of contingent and other claims.
Time to file claims.
Report for assessment.
Levy of assessment.
Order for payment of assessment.
Publication, transmittal of assessment order.
Judgment upon the assessment.
Dissolution of business corporation: Chapter 23B.14 RCW.
Uniform insurers liquidation act: Chapter 48.99 RCW.
48.31.010
48.31.010 Merger or consolidation. (1) Subject to the
provisions of RCW 48.08.080, relating to the mutualization
of stock insurers, RCW 48.09.350, relating to the conversion
or reinsurance of mutual insurers, and RCW 48.10.330, relating to the consolidation or conversion of reciprocal insurers,
a domestic insurer may merge or consolidate with another
insurer, subject to the following conditions:
[Title 48 RCW—page 183]
48.31.020
Title 48 RCW: Insurance
(a) The plan of merger or consolidation must be submitted to and be approved by the commissioner in advance of the
merger or consolidation.
(b) The commissioner shall not approve any such plan
unless, after a hearing, pursuant to such notice as the commissioner may require, he finds that it is fair, equitable, consistent with law, and that no reasonable objection exists. If the
commissioner fails to approve the plan, he shall state his reasons for such failure in his order made on such hearing. The
insurers involved in the merger shall bear the expense of the
mailing of the notice of hearing and of the order on hearing.
(c) No director, officer, member, or subscriber of any
such insurer, except as is expressly provided by the plan of
merger or consolidation, shall receive any fee, commission,
other compensation or valuable consideration whatsoever,
for in any manner aiding, promoting or assisting in the
merger or consolidation.
(d) Any merger or consolidation as to an incorporated
domestic insurer shall in other respects be governed by the
general laws of this state relating to business corporations.
Except, that as to domestic mutual insurers, approval by twothirds of its members who vote thereon pursuant to such
notice and procedure as was approved by the commissioner
shall constitute approval of the merger or consolidation as
respects the insurer's members.
(2) Reinsurance of all or substantially all of the insurance
in force of a domestic insurer by another insurer shall be
deemed a consolidation for the purposes of this section.
[1973 1st ex.s. c 107 § 3; 1961 c 194 § 11; 1947 c 79 § .31.01;
Rem. Supp. 1947 § 45.31.01.]
Severability—1973 1st ex.s. c 107: See note following RCW
48.17.330.
48.31.020
48.31.020 "Insurer"—Scope of term. For the purposes of this chapter, other than as to RCW 48.31.010, and in
addition to persons included under RCW 48.99.010, the term
"insurer" shall be deemed to include an insurer authorized
under chapter 48.05 RCW, an insurer or institution holding a
certificate of exemption under RCW 48.38.010, a health care
service contractor registered under chapter 48.44 RCW, and
a health maintenance organization registered under chapter
48.46 RCW, as well as all persons engaged as, or purporting
to be engaged as insurers, institutions issuing charitable gift
annuities, health care service contractors, or health maintenance organizations in this state, and to persons in process of
organization to become insurers, institutions issuing charitable gift annuities, health care service contractors, or health
maintenance organizations. [1998 c 284 § 8; 1989 c 151 § 1;
1947 c 79 § .31.02; Rem. Supp. 1947 § 45.31.02.]
48.31.021
48.31.021 Insurer—Self-funded multiple employer
welfare arrangement. A self-funded multiple employer
welfare arrangement, as defined in RCW 48.125.010, is an
insurer under this chapter. [2004 c 260 § 20.]
Severability—Effective date—2004 c 260: See RCW 48.125.900 and
48.125.901.
48.31.030 Rehabilitation—Grounds. The commissioner may apply for an order directing him or her to rehabilitate a domestic insurer upon one or more of the following
grounds: That the insurer
48.31.030
[Title 48 RCW—page 184]
(1) Is insolvent; or
(2) Has refused to submit its books, records, accounts, or
affairs to the reasonable examination of the commissioner; or
(3) Has failed to comply with the commissioner's order,
made pursuant to law, to make good an impairment of capital
(if a stock insurer) or an impairment of assets (if a mutual or
reciprocal insurer) within the time prescribed by law; or
(4) Has transferred or attempted to transfer substantially
its entire property or business, or has entered into any transaction the effect of which is to merge substantially its entire
property or business in that of any other insurer without first
having obtained the written approval of the commissioner; or
(5) Is found, after examination, to be in such condition
that its further transaction of business will be hazardous to its
policyholders, or to its creditors, or to its members, subscribers, or stockholders, or to the public; or
(6) Has willfully violated its charter or any law of this
state; or
(7) Has an officer, director, or manager who has refused
to be examined under oath, concerning its affairs, for which
purpose the commissioner is authorized to conduct and to
enforce by all appropriate and available means any such
examination under oath in any other state or territory of the
United States, in which any such officer, director, or manager
may then presently be, to the full extent permitted by the laws
of any such other state or territory, this special authorization
considered; or
(8) Has been the subject of an application for the
appointment of a receiver, trustee, custodian, or sequestrator
of the insurer or of its property, or if a receiver, trustee, custodian, or sequestrator is appointed by a federal court or if
such appointment is imminent; or
(9) Has consented to such an order through a majority of
its directors, stockholders, members, or subscribers; or
(10) Has failed to pay a final judgment rendered against
it in any state upon any insurance contract issued or assumed
by it, within thirty days after the judgment became final or
within thirty days after time for taking an appeal has expired,
or within thirty days after dismissal of an appeal before final
determination, whichever date is the later; or
(11) There is reasonable cause to believe that there has
been embezzlement from the insurer, wrongful sequestration
or diversion of the insurer's assets, forgery or fraud affecting
the insurer, or other illegal conduct in, by, or with respect to
the insurer that, if established, would endanger assets in an
amount threatening the solvency of the insurer; or
(12) The insurer has failed to remove a person who in
fact has executive authority in the insurer, whether an officer,
manager, general agent, employee, or other person, if the person has been found after notice and hearing by the commissioner to be dishonest or untrustworthy in a way affecting the
insurer's business; or
(13) Control of the insurer, whether by stock ownership
or ownership or otherwise, and whether direct or indirect, is
in a person or persons found after notice and hearing to be
untrustworthy; or
(14) The insurer has failed to file its annual report or
other financial report required by statute within the time
allowed by law and, after written demand by the commissioner, has failed to give an adequate explanation immediately; or
(2004 Ed.)
Mergers, Rehabilitation, Liquidation
(15) The board of directors or the holders of a majority of
the shares entitled to vote, request, or consent to rehabilitation under this chapter. [1993 c 462 § 75; 1949 c 190 § 28;
1947 c 79 § .31.03; Rem. Supp. 1949 § 45.31.03.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.040
48.31.040 Rehabilitation—Order—Termination. (1)
An order to rehabilitate a domestic insurer shall direct the
commissioner forthwith to take possession of the property of
the insurer and to conduct the business thereof, and to take
such steps toward removal of the causes and conditions
which have made rehabilitation necessary as the court may
direct.
(2) If at any time the commissioner deems that further
efforts to rehabilitate the insurer would be useless, he or she
may apply to the court for an order of liquidation.
(3) The commissioner, or any interested person upon due
notice to the commissioner, at any time may apply for an
order terminating the rehabilitation proceeding and permitting the insurer to resume possession of its property and the
conduct of its business, but no such order shall be granted
except when, after a full hearing, the court has determined
that the purposes of the proceedings have been fully accomplished.
(4) An order to rehabilitate the business of a domestic
insurer, or an alien insurer domiciled in this state, shall
appoint the commissioner and his or her successors in office
as the rehabilitator, and shall direct the rehabilitator to immediately take possession of the assets of the insurer, and to
administer them under the general supervision of the court.
The filing or recording of the order with the recorder of deeds
of the county in this state in which the principal business of
the company is conducted, or the county in this state in which
the company's principal office or place of business is located,
imparts the same notice as a deed or other evidence of title
duly filed or recorded with that recorder of deeds would have
imparted. The order to rehabilitate the insurer by operation of
law vests title to all assets of the insurer in the rehabilitator.
(5) An order issued under this section requires accountings to the court by the rehabilitator. Accountings must be
done at such intervals as the court specifies in its order, but no
less frequently than semiannually.
(6) Entry of an order of rehabilitation does not constitute
an anticipatory breach of contracts of the insurer nor may it
be grounds for retroactive revocation or retroactive cancellation of contracts of the insurer, unless the revocation or cancellation is done by the rehabilitator. [1993 c 462 § 76; 1947
c 79 § .31.04; Rem. Supp. 1947 § 45.31.04.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.060
ings. The rehabilitator shall take such action respecting the
pending litigation as he or she deems necessary in the interests of justice and for the protection of creditors, policyholders, and the public. The rehabilitator shall immediately consider all litigation pending outside this state and shall petition
the courts having jurisdiction over that litigation for stays
whenever necessary to protect the estate of the insurer.
(2) A statute of limitations or defense of laches does not
run with respect to an action by or against an insurer between
the filing of a petition for appointment of a rehabilitator for
that insurer and the order granting or denying that petition.
An action against the insurer that might have been commenced when the petition was filed may be commenced for at
least sixty days after the order of rehabilitation is entered or
the petition is denied. The rehabilitator may, upon an order
for rehabilitation, within one year or such other longer time
as applicable law may permit, institute an action or proceeding on behalf of the insurer upon a cause of action against
which the period of limitation fixed by applicable law has not
expired at the time of the filing of the petition upon which the
order is entered.
(3) A guaranty association or foreign guaranty association covering life or health insurance or annuities has standing to appear in a court proceeding concerning the rehabilitation of a life or health insurer if the association is or may
become liable to act as a result of the rehabilitation. [1993 c
462 § 77.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.050
48.31.050 Liquidation—Grounds. The commissioner
may apply for an order directing him to liquidate the business
of a domestic insurer or of the United States branch of an
alien insurer having trusteed assets in this state, regardless of
whether or not there has been a prior order directing him to
rehabilitate such insurer, upon any of the grounds specified in
RCW 48.31.030 or upon any one or more of the following
grounds: That the insurer
(1) Has ceased transacting business for a period of one
year; or
(2) Is an insolvent insurer and has commenced voluntary
liquidation or dissolution, or attempts to commence or prosecute any action or proceeding to liquidate its business or
affairs, or to dissolve its corporate charter, or to procure the
appointment of a receiver, trustee, custodian, or sequestrator
under any law except this code; or
(3) Has not organized or completed its organization and
obtained a certificate of authority as an insurer prior to the
expiration or revocation of its solicitation permit. [1947 c 79
§ .31.05; Rem. Supp. 1947 § 45.31.05.]
48.31.045
48.31.045 Rehabilitation order against insurer—
Insurer is party to action or proceeding—Stay the
action—Statute of limitations or defense of laches. (1) A
court in this state before which an action or proceeding in
which the insurer is a party, or is obligated to defend a party,
is pending when a rehabilitation order against the insurer is
entered shall stay the action or proceeding for ninety days and
such additional time as is necessary for the rehabilitator to
obtain proper representation and prepare for further proceed(2004 Ed.)
48.31.060
48.31.060 Liquidation—Order. (1) An order to liquidate the business of a domestic insurer shall direct the commissioner forthwith to take possession of the property of the
insurer, to liquidate its business, to deal with the insurer's
property and business in his own name as commissioner or in
the name of the insurer as the court may direct, to give notice
to all creditors who may have claims against the insurer to
present such claims.
[Title 48 RCW—page 185]
48.31.070
Title 48 RCW: Insurance
(2) The commissioner may apply under this chapter for
an order dissolving the corporate existence of a domestic
insurer:
(a) Upon his application for an order of liquidation of
such insurer, or at any time after such order has been granted;
or
(b) Upon the grounds specified in item (3) of RCW
48.31.050, regardless of whether an order of liquidation is
sought or has been obtained. [1947 c 79 § .31.06; Rem. Supp.
1947 § 45.31.06.]
48.31.070
48.31.070 Liquidation—Alien insurers. An order to
liquidate the business of the United States branch of an alien
insurer having trusteed assets in this state shall be in the same
terms as those prescribed for domestic insurers, except that
only the assets of the business of such United States branch
shall be included therein. [1947 c 79 § .31.07; Rem. Supp.
1947 § 45.31.07.]
48.31.080
48.31.080 Conservation of assets—Foreign insurers.
The commissioner may apply for an order directing him to
conserve the assets within this state of a foreign insurer upon
any one or more of the following grounds:
(1) Upon any of the grounds specified in items (1) to (9)
inclusive of RCW 48.31.030 and in item (2) of RCW
48.31.050.
(2) That its property has been sequestrated in its domiciliary sovereignty or in any other sovereignty. [1947 c 79 §
.31.08; Rem. Supp. 1947 § 45.31.08.]
48.31.090
48.31.090 Conservation of assets—Alien insurers.
The commissioner may apply for an order directing him to
conserve the assets within this state of an alien insurer upon
any one or more of the following grounds:
(1) Upon any of the grounds specified in items (1) to (9)
inclusive of RCW 48.31.030 and in item (2) of RCW
48.31.050; or
(2) That the insurer has failed to comply, within the time
designated by the commissioner, with an order of the commissioner pursuant to law to make good an impairment of its
trusteed funds; or
(3) That the property of the insurer has been sequestrated
in its domiciliary sovereignty or elsewhere. [1947 c 79 §
.31.09; Rem. Supp. 1947 § 45.31.09.]
48.31.100
48.31.100 Foreign insurers—Conservation, ancillary
proceedings. (1) An order to conserve the assets of a foreign
or alien insurer shall direct the commissioner forthwith to
take possession of the property of the insurer within this state
and to conserve it, subject to the further direction of the court.
(2) Whenever a domiciliary receiver is appointed for any
such insurer in its domiciliary state which is also a reciprocal
state, as defined in *RCW 48.31.110, the court shall on application of the commissioner appoint the commissioner as the
ancillary receiver in this state, subject to the provisions of the
uniform insurers liquidation act. [1947 c 79 § .31.10; Rem.
Supp. 1947 § 45.31.10.]
*Reviser's note: RCW 48.31.110 was recodified as RCW 48.99.010
pursuant to 1993 c 462 § 81.
[Title 48 RCW—page 186]
48.31.105
48.31.105 Conduct of proceedings—Requirement to
cooperate—Definitions—Violations—Penalties. (1) An
officer, manager, director, trustee, owner, employee, or agent
of an insurer or other person with authority over or in charge
of a segment of the insurer's affairs shall cooperate with the
commissioner in a proceeding under this chapter or an investigation preliminary to the proceeding. The term "person" as
used in this section includes a person who exercises control
directly or indirectly over activities of the insurer through a
holding company or other affiliate of the insurer. "To cooperate" as used in this section includes the following:
(a) To reply promptly in writing to an inquiry from the
commissioner requesting such a reply; and
(b) To make available to the commissioner books,
accounts, documents, or other records or information or property of or pertaining to the insurer and in his or her possession, custody, or control.
(2) A person may not obstruct or interfere with the commissioner in the conduct of a delinquency proceeding or an
investigation preliminary or incidental thereto.
(3) This section does not abridge existing legal rights,
including the right to resist a petition for liquidation or other
delinquency proceedings, or other orders.
(4) A person included within subsection (1) of this section who fails to cooperate with the commissioner, or a person who obstructs or interferes with the commissioner in the
conduct of a delinquency proceeding or an investigation preliminary or incidental thereto, or who violates an order the
commissioner issued validly under this chapter may:
(a) Be guilty of a gross misdemeanor and sentenced to
pay a fine not exceeding ten thousand dollars or to undergo
imprisonment for a term of not more than one year, or both;
or
(b) After a hearing, be subject to the imposition by the
commissioner of a civil penalty not to exceed ten thousand
dollars and be subject further to the revocation or suspension
of insurance licenses issued by the commissioner. [2003 c 53
§ 272; 1993 c 462 § 58.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.111
48.31.111 Commencement of delinquency proceeding by commissioner—Jurisdiction of courts. (1) A delinquency proceeding may not be commenced under this chapter by anyone other than the commissioner of this state, and
no court has jurisdiction to entertain a proceeding commenced by another person.
(2) No court of this state has jurisdiction to entertain a
complaint praying for the dissolution, liquidation, rehabilitation, sequestration, conservation, or receivership of an
insurer, or praying for an injunction or restraining order or
other relief preliminary to, incidental to, or relating to the
proceedings, other than in accordance with this chapter.
(3) In addition to other grounds for jurisdiction provided
by the law of this state, a court of this state having jurisdiction
of the subject matter has jurisdiction over a person served
under the rules of civil procedure or other applicable provisions of law in an action brought by the receiver of a domestic
insurer or an alien insurer domiciled in this state:
(2004 Ed.)
Mergers, Rehabilitation, Liquidation
(a) If the person served is an agent, broker, or other person who has written policies of insurance for or has acted in
any manner on behalf of an insurer against which a delinquency proceeding has been instituted, in an action resulting
from or incident to such a relationship with the insurer;
(b) If the person served is a reinsurer who has entered
into a contract of reinsurance with an insurer against which a
delinquency proceeding has been instituted, or is an agent or
broker of or for the reinsurer, in an action on or incident to the
reinsurance contract;
(c) If the person served is or has been an officer, director,
manager, trustee, organizer, promoter, or other person in a
position of comparable authority or influence over an insurer
against which a delinquency proceeding has been instituted,
in an action resulting from or incident to such a relationship
with the insurer;
(d) If the person served is or was at the time of the institution of the delinquency proceeding against the insurer holding assets in which the receiver claims an interest on behalf of
the insurer, in an action concerning the assets; or
(e) If the person served is obligated to the insurer in any
way, in an action on or incident to the obligation.
(4) If the court on motion of a party finds that an action
should as a matter of substantial justice be tried in a forum
outside this state, the court may enter an appropriate order to
stay further proceedings on the action in this state. [2003 c
248 § 11; 1993 c 462 § 59.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.115
48.31.115 Immunity from suit and liability—Persons
entitled to protection. (1) The persons entitled to protection
under this section are:
(a) The commissioner and any other receiver responsible
for conducting a delinquency proceeding under this chapter,
including present and former commissioners and receivers;
and
(b) The commissioner's employees, meaning all present
and former special deputies and assistant special deputies and
special receivers appointed by the commissioner and all persons whom the commissioner, special deputies, or assistant
special deputies have employed to assist in a delinquency
proceeding under this chapter. Attorneys, accountants, auditors, and other professional persons or firms who are retained
as independent contractors, and their employees, are not considered employees of the commissioner for purposes of this
section.
(2) The commissioner and the commissioner's employees are immune from suit and liability, both personally and in
their official capacities, for a claim for damage to or loss of
property or personal injury or other civil liability caused by or
resulting from an alleged act or omission of the commissioner or an employee arising out of or by reason of his or her
duties or employment. However, nothing in this subsection
may be construed to hold the commissioner or an employee
immune from suit or liability for any damage, loss, injury, or
liability caused by the intentional or willful and wanton
misconduct of the commissioner or an employee.
(3) If a legal action is commenced against the commissioner or an employee, whether against him or her personally
or in his or her official capacity, alleging property damage,
(2004 Ed.)
48.31.115
property loss, personal injury, or other civil liability caused
by or resulting from an alleged act or omission of the commissioner or an employee arising out of or by reason of his or
her duties or employment, the commissioner and any
employee shall be indemnified from the assets of the insurer
for all expenses, attorneys' fees, judgments, settlements,
decrees, or amounts due and owing or paid in satisfaction of
or incurred in the defense of the legal action unless it is determined upon a final adjudication on the merits that the alleged
act or omission of the commissioner or employee giving rise
to the claim did not arise out of or by reason of his or her
duties or employment, or was caused by intentional or willful
and wanton misconduct.
(a) Attorneys' fees and related expenses incurred in
defending a legal action for which immunity or indemnity is
available under this section shall be paid from the assets of
the insurer, as they are incurred, in advance of the final disposition of such action upon receipt of an undertaking by or on
behalf of the commissioner or employee to repay the attorneys' fees and expenses if it is ultimately determined upon a
final adjudication on the merits and that the commissioner or
employee is not entitled to immunity or indemnity under this
section.
(b) Any indemnification under this section is an administrative expense of the insurer.
(c) In the event of an actual or threatened litigation
against the commissioner or an employee for which immunity or indemnity may be available under this section, a reasonable amount of funds that in the judgment of the commissioner may be needed to provide immunity or indemnity shall
be segregated and reserved from the assets of the insurer as
security for the payment of indemnity until all applicable
statutes of limitation have run or all actual or threatened
actions against the commissioner or an employee have been
completely and finally resolved, and all obligations of the
insurer and the commissioner under this section have been
satisfied.
(d) In lieu of segregation and reserving of funds, the
commissioner may obtain a surety bond or make other
arrangements that will enable the commissioner to secure
fully the payment of all obligations under this section.
(4) If a legal action against an employee for which
indemnity may be available under this section is settled
before final adjudication on the merits, the insurer shall pay
the settlement amount on behalf of the employee, or indemnify the employee for the settlement amount, unless the commissioner determines:
(a) That the claim did not arise out of or by reason of the
employee's duties or employment; or
(b) That the claim was caused by the intentional or willful and wanton misconduct of the employee.
(5) In a legal action in which the commissioner is a
defendant, that portion of a settlement relating to the alleged
act or omission of the commissioner is subject to the approval
of the court before which the delinquency proceeding is
pending. The court may not approve that portion of the settlement if it determines:
(a) That the claim did not arise out of or by reason of the
commissioner's duties or employment; or
(b) That the claim was caused by the intentional or willful and wanton misconduct of the commissioner.
[Title 48 RCW—page 187]
48.31.121
Title 48 RCW: Insurance
(6) Nothing in this section removes or limits an immunity, indemnity, benefit of law, right, or defense otherwise
available to the commissioner, an employee, or any other person, not an employee under subsection (1)(b) of this section,
who is employed by or in the office of the commissioner or
otherwise employed by the state.
(7)(a) Subsection (2) of this section applies to any suit
based in whole or in part on an alleged act or omission that
takes place on or after July 25, 1993.
(b) No legal action lies against the commissioner or an
employee based in whole or in part on an alleged act or omission that took place before July 25, 1993, unless suit is filed
and valid service of process is obtained within twelve months
after July 25, 1993.
(c) Subsections (3), (4), and (5) of this section apply to a
suit that is pending on or filed after July 25, 1993, without
regard to when the alleged act or omission took place. [1993
c 462 § 60.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.121
48.31.121 Court order for a formal delinquency proceeding—Commissioner may petition—Insurer may petition for hearing and review. (1) The commissioner may
petition the court alleging, with respect to a domestic insurer:
(a) That there exists a ground that would justify a court
order for a formal delinquency proceeding against an insurer
under this chapter;
(b) That the interests of policyholders, creditors, or the
public will be endangered by delay; and
(c) The contents of an order deemed necessary by the
commissioner.
(2) Upon a filing under subsection (1) of this section, the
court may issue forthwith, ex parte and without a hearing, the
requested order that shall: Direct the commissioner to take
possession and control of all or a part of the property, books,
accounts, documents, and other records of an insurer, and of
the premises occupied by it for transaction of its business;
and until further order of the court enjoin the insurer and its
officers, managers, agents, and employees from disposition
of its property and from the transaction of its business except
with the written consent of the commissioner.
(3) The court shall specify in the order what the order's
duration shall be, which shall be such time as the court deems
necessary for the commissioner to ascertain the condition of
the insurer. On motion of either party or on its own motion,
the court may from time to time hold hearings it deems desirable after such notice as it deems appropriate, and may
extend, shorten, or modify the terms of the seizure order. The
court shall vacate the seizure order if the commissioner fails
to commence a formal proceeding under this chapter after
having had a reasonable opportunity to do so. An order of the
court pursuant to a formal proceeding under this chapter
vacates the seizure order.
(4) Entry of a seizure order under this section does not
constitute an anticipatory breach of a contract of the insurer.
(5) An insurer subject to an ex parte order under this section may petition the court at any time after the issuance of an
order under this section for a hearing and review of the order.
The court shall hold the hearing and review not more than fifteen days after the request. A hearing under this subsection
[Title 48 RCW—page 188]
may be held privately in chambers, and it must be so held if
the insurer proceeded against so requests.
(6) If, at any time after the issuance of an order under this
section, it appears to the court that a person whose interest is
or will be substantially affected by the order did not appear at
the hearing and has not been served, the court may order that
notice be given. An order that notice be given does not stay
the effect of an order previously issued by the court. [1993 c
462 § 61.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.125
48.31.125 Order of liquidation—Termination of coverage. (1) All policies, including bonds and other noncancellable business, other than life or health insurance or annuities,
in effect at the time of issuance of an order of liquidation continue in force only until the earliest of:
(a) The end of a period of thirty days from the date of
entry of the liquidation order;
(b) The expiration of the policy coverage;
(c) The date when the insured has replaced the insurance
coverage with equivalent insurance in another insurer or otherwise terminated the policy;
(d) The liquidator has effected a transfer of the policy
obligation; or
(e) The date proposed by the liquidator and approved by
the court to cancel coverage.
(2) An order of liquidation terminates coverages at the
time specified in subsection (1) of this section for purposes of
any other statute.
(3) Policies of life or health insurance or annuities shall
continue in force for the period and under the terms provided
by an applicable guaranty association or foreign guaranty
association.
(4) Policies of life or health insurance or annuities or a
period or coverage of the policies not covered by a guaranty
association or foreign guaranty association shall terminate
under subsections (1) and (2) of this section. [1993 c 462 §
62.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.131
48.31.131 Appointment of liquidator—Actions at law
or equity—Statute of limitations or defense of laches. (1)
Upon issuance of an order appointing a liquidator of a domestic insurer or of an alien insurer domiciled in this state, an
action at law or equity or in arbitration may not be brought
against the insurer or liquidator, whether in this state or elsewhere, nor may such an existing action be maintained or further presented after issuance of the order. The courts of this
state shall give full faith and credit to injunctions against the
liquidator or the company when the injunctions are included
in an order to liquidate an insurer issued under laws in other
states corresponding to this subsection. Whenever, in the liquidator's judgment, protection of the estate of the insurer
necessitates intervention in an action against the insurer that
is pending outside this state, the liquidator may intervene in
the action. The liquidator may defend an action in which he
or she intervenes under this section at the expense of the
estate of the insurer.
(2004 Ed.)
Mergers, Rehabilitation, Liquidation
(2) The liquidator may, upon or after an order for liquidation, within two years or such other longer time as applicable law may permit, institute an action or proceeding on
behalf of the estate of the insurer upon a cause of action
against which the period of limitation fixed by applicable law
has not expired at the time of the filing of the petition upon
which the order is entered. Where, by an agreement, a period
of limitation is fixed for instituting a suit or proceeding upon
a claim, or for filing a claim, proof of claim, proof of loss,
demand, notice, or the like, or where in a proceeding, judicial
or otherwise, a period of limitation is fixed, either in the proceeding or by applicable law, for taking an action, filing a
claim or pleading, or doing an act, and where in such a case
the period had not expired at the date of the filing of the petition, the liquidator may, for the benefit of the estate, take such
an action or do such an act, required of or permitted to the
insurer, within a period of one hundred eighty days after the
entry of an order for liquidation, or within such further period
as is shown to the satisfaction of the court not to be unfairly
prejudicial to the other party.
(3) A statute of limitation or defense of laches does not
run with respect to an action against an insurer between the
filing of a petition for liquidation against an insurer and the
denial of the petition. An action against the insurer that might
have been commenced when the petition was filed may be
commenced for at least sixty days after the petition is denied.
(4) A guaranty association or foreign guaranty association has standing to appear in a court proceeding concerning
the liquidation of an insurer if the association is or may
become liable to act as a result of the liquidation. [1993 c 462
§ 63.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.135
48.31.135 Recovery from reinsurers—Not reduced
by delinquency proceedings—Direct payment to insured.
The amount recoverable by the commissioner from reinsurers
may not be reduced as a result of the delinquency proceedings, regardless of any provision in the reinsurance contract
or other agreement except as provided in RCW 48.31.290.
Payment made directly to an insured or other creditor does
not diminish the reinsurer's obligation to the insurer's estate
except when the reinsurance contract provided for direct coverage of a named insured and the payment was made in discharge of that obligation. [1993 c 462 § 64.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.141
48.31.141 Responsibility for payment of a premium—Earned or unearned premium—Violations—
Penalties—Rights of party aggrieved. (1)(a) An agent,
broker, premium finance company, or any other person, other
than the policy owner or the insured, responsible for the payment of a premium is obligated to pay any unpaid premium
for the full policy term due the insurer at the time of the declaration of insolvency, whether earned or unearned, as shown
on the records of the insurer. The liquidator also has the right
to recover from the person a part of an unearned premium
that represents commission of the person. Credits or setoffs
or both may not be allowed to an agent, broker, or premium
finance company for amounts advanced to the insurer by the
(2004 Ed.)
48.31.145
agent, broker, or premium finance company on behalf of, but
in the absence of a payment by, the policy owner or the
insured.
(b) Notwithstanding (a) of this subsection, the agent,
broker, premium finance company, or other person is not liable for uncollected unearned premium of the insurer. A presumption exists that the premium as shown on the books of
the insurer is collected, and the burden is upon the agent, broker, premium finance company, or other person to demonstrate by a preponderance of the evidence that the unearned
premium was not actually collected. For purposes of this subsection, "unearned premium" means that portion of an insurance premium covering the unexpired term of the policy or
the unexpired period of the policy period.
(c) An insured is obligated to pay any unpaid earned premium due the insurer at the time of the declaration of insolvency, as shown on the records of the insurer.
(2) Upon a violation of this section, the commissioner
may pursue either one or both of the following courses of
action:
(a) Suspend or revoke or refuse to renew the licenses of
the offending party or parties;
(b) Impose a penalty of not more than one thousand dollars for each violation.
(3) Before the commissioner may take an action as set
forth in subsection (2) of this section, he or she shall give
written notice to the person accused of violating the law, stating specifically the nature of the alleged violation, and fixing
a time and place, at least ten days thereafter, when a hearing
on the matter shall be held. After the hearing, or upon failure
of the accused to appear at the hearing, the commissioner, if
he or she finds a violation, shall impose those penalties under
subsection (2) of this section that he or she deems advisable.
(4) When the commissioner takes action in any or all of
the ways set out in subsection (2) of this section, the party
aggrieved has the rights granted under the Administrative
Procedure Act, chapter 34.05 RCW. [1993 c 462 § 65.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.145
48.31.145 Liquidator denies claim—Written
notice—Objections of claimant—Court hearing. (1)
When the liquidator denies a claim in whole or in part, the
liquidator shall give written notice of the determination to the
claimant or the claimant's attorney by first class mail at the
address shown in the proof of claim. Within sixty days from
the mailing of the notice, the claimant may file his or her
objections with the liquidator. If no such a filing is made, the
claimant may not further object to the determination.
(2) Whenever the claimant files objections with the liquidator and the liquidator does not alter his or her denial of
the claim as a result of the objections, the liquidator shall ask
the court for a hearing as soon as practicable and give notice
of the hearing by first class mail to the claimant or the claimant's attorney and to other persons directly affected, not less
than ten nor more than thirty days before the date of the hearing. The matter may be heard by the court or by a courtappointed referee who shall submit findings of fact along
with his or her recommendation. [1993 c 462 § 66.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
[Title 48 RCW—page 189]
48.31.151
Title 48 RCW: Insurance
48.31.151
48.31.151 Creditor's claim against insurer is secured
by other person—Subrogated rights—Agreements concerning distributions. Whenever a creditor whose claim
against an insurer is secured, in whole or in part, by the
undertaking of another person, fails to prove and file that
claim, the other person may do so in the creditor's name, and
is subrogated to the rights of the creditor, whether the claim
has been filed by the creditor or by the other person in the
creditor's name, to the extent that he or she discharges the
undertaking. In the absence of an agreement with the creditor
to the contrary, the other person is not entitled to a distribution until the amount paid to the creditor on the undertaking plus the distributions paid on the claim from the insurer's
estate to the creditor equals the amount of the entire claim of
the creditor. The creditor shall hold any excess received by
him or her in trust for the other person. The term "other person" as used in this section does not apply to a guaranty association or foreign guaranty association. [1993 c 462 § 67.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.155
48.31.155 Unclaimed funds—Liquidator's application for discharge—Duties of state treasurer. Unclaimed
funds subject to distribution remaining in the liquidator's
hands when he or she is ready to apply to the court for discharge, including the amount distributable to a person who is
unknown or cannot be found, shall be deposited with the state
treasurer, and shall be paid without interest to the person entitled to them or his or her legal representative upon proof satisfactory to the state treasurer of his or her right to them. An
amount on deposit not claimed within six years from the discharge of the liquidator is deemed to have been abandoned
and shall be escheated without formal escheat proceedings
and be deposited with the state treasurer. [1993 c 462 § 68.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.161
48.31.161 After termination of liquidation proceeding—Good cause to reopen proceedings. After the liquidation proceeding has been terminated and the liquidator discharged, the commissioner or other interested party may at
any time petition the court to reopen the proceedings for good
cause, including the discovery of additional assets. If the
court is satisfied that there is justification for reopening, it
shall so order. [1993 c 462 § 69.]
Severability—Implementation—1993 c 462: See note following
RCW 48.31B.901 and 48.31B.902.
48.31.165
48.31.165 Domiciliary receiver not appointed—
Court order to liquidate—Notice—Domiciliary receiver
appointed in other state. (1) If no domiciliary receiver has
been appointed, the commissioner may apply to the court for
an order directing him or her to liquidate the assets found in
this state of a foreign insurer or an alien insurer not domiciled
in this state, on any of the grounds stated in: RCW 48.31.030,
except subsection (10) of that section; 48.31.050(2); or
48.31.080.
(2) When an order is sought under subsection (1) of this
section, the court shall cause the insurer to be given thirty
days' notice and time to respond, or a lesser period reasonable
under the circumstances.
[Title 48 RCW—page 190]
(3) If it appears to the court that the best interests of creditors, policyholders, and the public require, the court may
issue an order to liquidate in whatever terms it deems appropriate. The filing or recording of the order with the recorder
of deeds of the county in which the principal business of the
company in this state is located or the county in which its
principal office or place of business in this state is located,
imparts the same notice as a deed or other evidence of title
duly filed or recorded with that recorder of deeds would have
imparted.
(4) If a domiciliary liquidator is appointed in a reciprocal
state while a liquidation is proceeding under this section, the
liquidator under this section shall thereafter act as ancillary
receiver under RCW 48.99.030. If a domiciliary liquidator is
appointed in a nonreciprocal state while a liquidation is proceeding under this section, the liquidator under this section
may petition the court for permission to act as ancillary
receiver under RCW 48.99.030.
(5) On the same grounds as are specified in subsection
(1) of this section, the commissioner may petition an appropriate federal court to be appointed receiver to liquidate that
portion of the insurer's assets and business over which the
court will exercise jurisdiction, or any lesser part thereof that
the commissioner deems desirable for the protection of policyholders, creditors, and the public in this state.
(6) The court may order the commissioner, when he or
she has liquidated the assets of a foreign or alien insurer
under this section, to pay claims of residents of this state
against the insurer under those rules on the liquidation of
insurers under this chapter that are otherwise compatible with
this section. [1993 c 462 § 70.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.171
48.31.171 Domiciliary liquidator—Reciprocal
state—Nonreciprocal state—Commissioner's duties. (1)
Except as to special deposits and security on secured claims
under RCW 48.99.030(2), the domiciliary liquidator of an
insurer domiciled in a reciprocal state is vested by operation
of law with the title to all of the assets, property, contracts,
and rights of action, agents' balances, and all the books,
accounts, and other records of the insurer located in this state.
The date of vesting is the date of the filing of the petition, if
that date is specified by the domiciliary law for the vesting of
property in the domiciliary state. Otherwise, the date of vesting is the date of entry of the order directing possession to be
taken. The domiciliary liquidator has the immediate right to
recover balances due from agents and to obtain possession of
the books, accounts, and other records of the insurer located
in this state. The domiciliary liquidator also has the right to
recover all other assets of the insurer located in this state, subject to RCW 48.99.030.
(2) If a domiciliary liquidator is appointed for an insurer
not domiciled in a reciprocal state, the commissioner of this
state is vested by operation of law with the title to all of the
property, contracts, and rights of action, and all the books,
accounts, and other records of the insurer located in this state,
at the same time that the domiciliary liquidator is vested with
title in the domicile. The commissioner of this state may petition for a conservation or liquidation order under RCW
48.31.100 or 48.99.030, or for an ancillary receivership under
(2004 Ed.)
Mergers, Rehabilitation, Liquidation
RCW 48.99.030, or after approval by the court may transfer
title to the domiciliary liquidator, as the interests of justice
and the equitable distribution of the assets require.
(3) Claimants residing in this state may file claims with
the liquidator or ancillary receiver, if any, in this state or with
the domiciliary liquidator, if the domiciliary law permits. The
claims must be filed on or before the last date fixed for the filing of claims in the domiciliary liquidation proceedings.
[1993 c 462 § 71.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.175
48.31.175 Foreign or alien insurer—Property located
in this state—Commissioner's discretion. The commissioner in his or her sole discretion may institute proceedings
under RCW 48.31.121 at the request of the commissioner or
other appropriate insurance official of the domiciliary state of
a foreign or alien insurer having property located in this state.
[1993 c 462 § 72.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.181
48.31.181 Liquidation proceedings—One or more
reciprocal states—Distributions—Special deposit
claims—Secured claims. (1) In a liquidation proceeding in
this state involving one or more reciprocal states, the order of
distribution of the domiciliary state controls as to claims of
residents of this and reciprocal states. Claims of residents of
reciprocal states shall be given equal priority of payment
from general assets regardless of where the assets are located.
(2) The owners of special deposit claims against an
insurer for which a liquidator is appointed in this or any other
state shall be given priority against the special deposits in
accordance with the statutes governing the creation and
maintenance of the deposits. If there is a deficiency in a
deposit, so that the claims secured by it are not fully discharged from it, the claimants may share in the general assets,
but the sharing shall be deferred until general creditors, and
also claimants against other special deposits who have
received smaller percentages from their respective special
deposits, have been paid percentages of their claims equal to
the percentage paid from the special deposit.
(3) The owner of a secured claim against an insurer for
which a liquidator has been appointed in this or another state
may surrender his or her security and file his or her claim as
a general creditor, or the claim may be discharged by resort to
the security, in which case the deficiency, if any, shall be
treated as a claim against the general assets of the insurer on
the same basis as claims of unsecured creditors. [1993 c 462
§ 73.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.184
48.31.184 Ancillary receiver in another state or foreign country—Failure to transfer assets. If an ancillary
receiver in another state or foreign country, whether called by
that name or not, fails to transfer to the domiciliary liquidator
in this state assets within his or her control other than special
deposits, diminished only by the expenses of the ancillary
receivership, if any, then the claims filed in the ancillary
receivership, other than special deposit claims or secured
(2004 Ed.)
48.31.185
claims, shall be placed in the class of claims under RCW
48.31.280(8). [2003 c 248 § 12; 1993 c 462 § 74.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.185
48.31.185 Receiver's proposal to disperse assets upon
liquidation—Application for approval—Contents of proposal—Notice of application. (1) Within one hundred
twenty days of a final determination of insolvency of an
insurer and order of liquidation by a court of competent jurisdiction of this state, the receiver shall make application to the
court for approval of a proposal to disperse assets out of that
insurer's marshalled assets from time to time as assets
become available to the Washington insurance guaranty association and the Washington life and disability insurance guaranty association and to any entity or person performing a similar function in another state. For purposes of this section,
"associations" means the Washington insurance guaranty
association and the Washington life and disability insurance
guaranty association and any entity or person performing a
similar function in other states.
(2) Such a proposal must at least include provisions for:
(a) Reserving amounts for the payment of claims falling
within the priorities established in RCW 48.31.280;
(b) Disbursement of the assets marshalled to date and
subsequent disbursements of assets as they become available;
(c) Equitable allocation of disbursements to each of the
associations entitled thereto;
(d) The securing by the receiver from each of the associations entitled to disbursements pursuant to this section an
agreement to return to the receiver assets previously disbursed that are required to pay claims of secured creditors
and claims falling within the priorities established in RCW
48.31.280. A bond is not required of any association; and
(e) A full report by the association to the receiver
accounting for all assets so disbursed to the association, all
disbursements made therefrom, any interest earned by the
association on those assets, and any other matters as the court
may direct.
(3) The receiver's proposal must provide for disbursements to the associations in amounts estimated at least equal
to the claim payments made or to be made thereby for which
such associations could assert a claim against the receiver,
and must further provide that if the assets available for disbursement from time to time do not equal or exceed the
amount of the claim payments made or to be made by the
associations then disbursements must be in the amount of
available assets.
(4) The receiver's proposal shall, with respect to an insolvent insurer writing life insurance, disability insurance, or
annuities, provide for disbursements of assets to the Washington life and disability insurance guaranty association or to
any other entity or organization reinsuring, assuming, or
guaranteeing policies or contracts of insurance under the provisions of the Washington life and disability insurance guaranty association act.
(5) Notice of an application must be given to the associations in and to the commissioners of insurance of each of the
states. Notice is effected when deposited in the United States
certified mails, first class postage prepaid, at least thirty days
[Title 48 RCW—page 191]
48.31.190
Title 48 RCW: Insurance
prior to submission of the application to the court. [2003 c
248 § 13; 1975-'76 2nd ex.s. c 109 § 10.]
48.31.190 Commencement of proceeding—Venue—
Effect of appellate review. (1) Proceedings under this chapter involving a domestic insurer shall be commenced in the
superior court for the county in which is located the insurer's
home office or, at the election of the commissioner, in the
superior court for Thurston county. Proceedings under this
chapter involving other insurers shall be commenced in the
superior court for Thurston county.
(2) The commissioner shall commence any such proceeding, the attorney general representing him, by an application to the court or to any judge thereof, for an order directing
the insurer to show cause why the commissioner should not
have the relief prayed for.
(3) Upon a showing of an emergency or threat of imminent loss to policyholders of the insurer the court may issue
an ex parte order authorizing the commissioner immediately
to take over the premises and assets of the insurer, the commissioner then to preserve the status quo, pending a hearing
on the order to show cause, which shall be heard as soon as
the court calendar permits in preference to other civil cases.
(4) In response to any order to show cause issued under
this chapter the insurer shall have the burden of going forward with and producing evidence to show why the relief
prayed for by the commissioner is not required.
(5) On the return of such order to show cause, and after a
full hearing, the court shall either deny the relief sought in the
application or grant the relief sought in the application
together with such other relief as the nature of the case and
the interest of policyholders, creditors, stockholders, members, subscribers, or the public may require.
(6) No appellate review of a superior court order, entered
after a hearing, granting the commissioner's petition to rehabilitate an insurer or to carry out an insolvency proceeding
under this chapter, shall stay the action of the commissioner
in the discharge of his responsibilities under this chapter,
pending a decision by the appellate court in the matter.
(7) In any proceeding under this chapter the commissioner and his deputies shall be responsible on their official
bonds for the faithful performance of their duties. If the court
deems it desirable for the protection of the assets, it may at
any time require an additional bond from the commissioner
or his deputies. [1993 c 462 § 82; 1988 c 202 § 46; 1969 ex.s.
c 241 § 13; 1967 c 150 § 31; 1947 c 79 § .31.19; Rem. Supp.
1947 § 45.31.19.]
48.31.190
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
Severability—1988 c 202: See note following RCW 2.24.050.
48.31.200 Injunctions. (1) Upon application by the
commissioner for such an order to show cause or at any time
thereafter, the court may without notice issue an injunction
restraining the insurer, its officers, directors, stockholders,
members, subscribers, agents, and all other persons from the
transaction of its business or the waste or disposition of its
property until the further order of the court.
(2) The court may at any time during a proceeding under
this chapter issue such other injunctions or orders as may be
deemed necessary to prevent interference with the commis48.31.200
[Title 48 RCW—page 192]
sioner or the proceeding, or waste of the assets of the insurer,
or the commencement or prosecution of any actions, or the
obtaining of preferences, judgments, attachments or other
liens, or the making of any levy against the insurer or against
its assets or any part thereof. [1947 c 79 § .31.20; Rem. Supp.
1947 § 45.31.20.]
48.31.210
48.31.210 Change of venue. At any time after the commencement of a proceeding under this chapter the commissioner may apply to the court for an order changing the venue
of, and removing the proceeding to Thurston county, or to
any other county of this state in which he deems that such
proceeding may be most economically and efficiently conducted. [1947 c 79 § .31.21; Rem. Supp. 1947 § 45.31.21.]
48.31.220
48.31.220 Deposit of moneys collected. The moneys
collected by the commissioner in a proceeding under this
chapter, shall be, from time to time, deposited in one or more
state or national banks, savings banks, or trust companies,
and in the case of the insolvency or voluntary or involuntary
liquidation of any such depositary which is an institution
organized and supervised under the laws of this state, such
deposits shall be entitled to priority of payment on an equality
with any other priority given by the banking law of this state.
The commissioner may in his discretion deposit such moneys
or any part thereof in a national bank or trust company as a
trust fund. [1947 c 79 § .31.22; Rem. Supp. 1947 § 45.31.22.]
48.31.230
48.31.230 Exemption from filing fees. The commissioner shall not be required to pay any fee to any public
officer in this state for filing, recording, issuing a transcript or
certificate, or authenticating any paper or instrument pertaining to the exercise by the commissioner of any of the powers
or duties conferred upon him under this chapter, whether or
not such paper or instrument be executed by the commissioner or his deputies, employees, or attorneys of record and
whether or not it is connected with the commencement of an
action or proceeding by or against the commissioner, or with
the subsequent conduct of such action or proceeding. [1947
c 79 § .31.23; Rem. Supp. 1947 § 45.31.23.]
48.31.240
48.31.240 Borrowing on pledge of assets. For the purpose of facilitating the rehabilitation, liquidation, conservation or dissolution of an insurer pursuant to this chapter the
commissioner may, subject to the approval of the court, borrow money and execute, acknowledge and deliver notes or
other evidences of indebtedness therefor and secure the
repayment of the same by the mortgage, pledge, assignment,
transfer in trust, or hypothecation of any or all of the property
whether real, personal or mixed of such insurer, and the commissioner, subject to the approval of the court, shall have
power to take any and all other action necessary and proper to
consummate any such loans and to provide for the repayment
thereof. The commissioner shall be under no obligation personally or in his official capacity as commissioner to repay
any loan made pursuant to this section. [1947 c 79 § .31.24;
Rem. Supp. 1947 § 45.31.24.]
48.31.260
48.31.260 Liquidation—Date rights, liabilities fixed.
The rights and liabilities of the insurer and of its creditors,
(2004 Ed.)
Mergers, Rehabilitation, Liquidation
policyholders, stockholders, members, subscribers, and all
other persons interested in its estate shall, unless otherwise
directed by the court, be fixed as of the date on which the
order directing the liquidation of the insurer is filed in the
office of the clerk of the court which made the order, subject
to the provisions of RCW 48.31.300 with respect to the rights
of claimants holding contingent claims and RCW 48.31.280
with respect to the priority and order of distributions of
claims. [2001 c 40 § 2; 1947 c 79 § .31.26; Rem. Supp. 1947
§ 45.31.26.]
Application—Severability—2001 c 40: See notes following RCW
48.31.280.
48.31.270
48.31.270 Voidable transfers. (1) Any transfer of, or
lien upon, the property of an insurer which is made or created
within four months prior to the granting of an order to show
cause under this chapter with the intent of giving to any creditor or of enabling him to obtain a greater percentage of his
debt than any other creditor of the same class and which is
accepted by such creditor having reasonable cause to believe
that such a preference will occur, shall be voidable.
(2) Every director, officer, employee, stockholder, member, subscriber, and any other person acting on behalf of such
insurer who shall be concerned in any such act or deed and
every person receiving thereby any property of such insurer
or the benefit thereof shall be personally liable therefor and
shall be bound to account to the commissioner.
(3) The commissioner as liquidator, rehabilitator or conservator in any proceeding under this chapter, may avoid any
transfer of, or lien upon the property of an insurer which any
creditor, stockholder, subscriber or member of such insurer
might have avoided and may recover the property so transferred unless such person was a bona fide holder for value
prior to the date of the granting of an order to show cause
under this chapter. Such property or its value may be recovered from anyone who has received it except a bona fide
holder for value as above specified. [1947 c 79 § .31.27;
Rem. Supp. 1947 § 45.31.27.]
48.31.280
48.31.280 Priority and order of distribution of
claims. The priority of distribution of claims from the
insurer's estate is as follows: Every claim in a class must be
paid in full or adequate funds retained for payment before the
members of the next class receive any payment; no subclasses may be established within a class; and no claim by a
shareholder, policyholder, or other creditor may circumvent
the priority classes through the use of equitable remedies.
The order of distribution of claims is:
(1) Class 1. The costs and expenses of administration
during rehabilitation and liquidation, including but not limited to the following:
(a) The actual and necessary costs of preserving or
recovering the assets of the insurer;
(b) Compensation for all authorized services rendered in
the rehabilitation and liquidation;
(c) Necessary filing fees;
(d) The fees and mileage payable to witnesses;
(e) Authorized reasonable attorneys' fees and other professional services rendered in the rehabilitation and liquidation;
(2004 Ed.)
48.31.280
(f) The reasonable expenses of a guaranty association or
foreign guaranty association for unallocated loss adjustment
expenses.
(2) Class 2. Loss claims. For purposes of this section,
loss claims are all claims under policies, including claims of
the federal or a state or local government, for losses incurred,
including third-party claims, and all claims of a guaranty
association or foreign guaranty association. All claims under
life insurance and annuity policies, whether for death proceeds, annuity proceeds, or investment values, are loss
claims. That portion of any loss indemnification that is provided for by other benefits or advantages recovered by the
claimant, is not included in this class, other than benefits or
advantages recovered or recoverable in discharge of familial
obligations of support or by way of succession at death or as
proceeds of life insurance, or as gratuities. No payment by an
employer to an employee may be treated as a gratuity. Loss
claims also include claims under nonassessable policies for
unearned premium or other premium refunds.
(3) Class 3. Claims of the federal government, other than
claims which are included as loss claims under subsection (2)
of this section.
(4) Class 4. Reasonable compensation to employees for
services performed to the extent that they do not exceed two
months of monetary compensation and represent payment for
services performed within one year before the filing of the
petition for liquidation or, if rehabilitation preceded liquidation, within one year before the filing of the petition for rehabilitation; except, where there are no claims and no potential
claims of the federal government in the estate, in which case
claims in this class shall have priority over claims in class 2
and below. Principal officers and directors are not entitled to
the benefit of this priority except as otherwise approved by
the liquidator and the court. This priority is in lieu of any
other similar priority that may be authorized by law as to
wages or compensation of employees.
(5) Class 5. Claims of general creditors including claims
of ceding and assuming companies in their capacity as such.
(6) Class 6. Claims of any state or local government,
except those under subsection (2) of this section. Claims,
including those of any governmental body for a penalty or
forfeiture, are allowed in this class only to the extent of the
pecuniary loss sustained from the act, transaction, or proceeding out of which the penalty or forfeiture arose, with reasonable and actual costs occasioned thereby. The remainder
of such claims are postponed to the class of claims under subsection (9) of this section.
(7) Class 7. Claims filed late or any other claims other
than claims under subsections (8) and (9) of this section.
(8) Class 8. Surplus or contribution notes, or similar obligations, and premium refunds on assessable policies. Payments to members of domestic mutual insurance companies
are limited in accordance with law.
(9) Class 9. The claims of shareholders or other owners
in their capacity as shareholders. [2001 c 40 § 1; 1993 c 462
§ 83; 1975-'76 2nd ex.s. c 109 § 1; 1947 c 79 § .31.28; Rem.
Supp. 1947 § 45.31.28.]
Application—2001 c 40: "This act applies to and governs all claims
filed in any proceeding to liquidate an insurer that is initiated on or after January 1, 2001." [2001 c 40 § 3.]
[Title 48 RCW—page 193]
48.31.290
Title 48 RCW: Insurance
Severability—2001 c 40: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [2001 c 40 § 4.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.290
48.31.290 Offsets. (1) In all cases of mutual debts or
mutual credits between the insurer and another person in connection with any action or proceeding under this chapter,
such credits and debts shall be set off and the balance only
shall be allowed or paid, except as provided in subsection (2)
of this section.
(2) No offset shall be allowed in favor of any such person
where (a) the obligation of the insurer to such person would
not at the date of the entry of any liquidation order, or otherwise, as provided in RCW 48.31.260, entitle him to share as
a claimant in the assets of the insurer, or (b) the obligation of
the insurer to such person was purchased by or transferred to
such person with a view of its being used as an offset, or (c)
the obligation of such person is to pay an assessment levied
against the members of a mutual insurer, or against the subscribers of a reciprocal insurer, or is to pay a balance upon a
subscription to the capital stock of a stock insurer. [1947 c 79
§ .31.29; Rem. Supp. 1947 § 45.31.29.]
the liquidation order shall be considered as conclusive evidence in the liquidation proceeding either of the liability of
such insured to such person upon such cause of action or of
the amount of damages to which such person is therein entitled.
(3) No claim of any secured claimant shall be allowed at
a sum greater than the difference between the value of the
claim without security and the value of the security itself as
of the date of the entry of the order of liquidation or such
other date set by the court for fixation of rights and liabilities
as provided in RCW 48.31.260 unless the claimant shall surrender his or her security to the commissioner in which event
the claim shall be allowed in the full amount for which it is
valued.
(4) Whether or not the third party files a claim, the
insured may file a claim on his or her own behalf in the liquidation.
(5) No claim may be presented under this section if it is
or may be covered by a guaranty association or foreign guaranty association. [1993 c 462 § 84; 1947 c 79 § .31.30; Rem.
Supp. 1947 § 45.31.30.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.31.310
48.31.300
48.31.300 Allowance of contingent and other claims.
(1) No contingent claim shall share in a distribution of the
assets of an insurer which has been adjudicated to be insolvent by an order made pursuant to RCW 48.31.310, except
that such claims shall be considered, if properly presented,
and may be allowed to share where:
(a) Such claim becomes absolute against the insurer on
or before the last day fixed for filing of proofs of claim
against the assets of such insurer, or
(b) There is a surplus and the liquidation is thereafter
conducted upon the basis that such insurer is solvent.
(2) Where an insurer has been so adjudicated to be insolvent any person who has a cause of action against an insured
of such insurer under a liability insurance policy issued by
such insurer, shall have the right to file a claim in the liquidation proceeding, regardless of the fact that such claim may be
contingent, and such claim may be allowed
(a) If it may be reasonably inferred from the proof presented upon such claim that such person would be able to
obtain a judgment upon such cause of action against such
insured; and
(b) If such person shall furnish suitable proof, unless the
court for good cause shown shall otherwise direct, that no
further valid claims against such insurer arising out of his or
her cause of action other than those already presented can be
made; and
(c) If the total liability of such insurer to all claimants
arising out of the same act of its insured shall be no greater
than its maximum liability would be were it not in liquidation.
No judgment against such an insured taken after the date
of the entry of the liquidation order shall be considered in the
liquidation proceedings as evidence of liability, or of the
amount of damages, and no judgment against an insured
taken by default, inquest or by collusion prior to the entry of
[Title 48 RCW—page 194]
48.31.310 Time to file claims. (1) If upon the granting
of an order of liquidation under this chapter or at any time
thereafter during the liquidation proceeding, the insurer shall
not be clearly solvent, the court shall after such notice and
hearing as it deems proper, make an order declaring the
insurer to be insolvent. Thereupon, regardless of any prior
notice which may have been given to creditors, the commissioner shall notify all persons who may have claims against
such insurer and who have not filed proper proofs thereof, to
present the same to him, at a place specified in such notice,
within four months from the date of the entry of such order,
or if the commissioner shall certify that it is necessary, within
such longer time as the court shall prescribe. The last day for
the filing of proofs of claim shall be specified in the notice.
Such notice shall be given in a manner determined by the
court.
(2) Proofs of claim may be filed subsequent to the date
specified, but no such claim shall share in the distribution of
the assets until all allowed claims, proofs of which have been
filed before said date, have been paid in full with interest.
[1947 c 79 § .31.31; Rem. Supp. 1947 § 45.31.31.]
48.31.320
48.31.320 Report for assessment. Within three years
from the date an order of rehabilitation or liquidation of a
domestic mutual insurer or a domestic reciprocal insurer was
filed in the office of the clerk of the court by which such order
was made, the commissioner may make a report to the court
setting forth
(1) the reasonable value of the assets of the insurer;
(2) the insurer's probable liabilities; and
(3) the probable necessary assessment, if any, to pay all
claims and expenses in full, including expenses of administration. [1947 c 79 § .31.32; Rem. Supp. 1947 § 45.31.32.]
48.31.330
48.31.330 Levy of assessment. (1) Upon the basis of
the report provided for in RCW 48.31.320, including any
(2004 Ed.)
Insurer Holding Company Act
amendments thereof, the court, ex parte, may levy one or
more assessments against all members of such insurer who,
as shown by the records of the insurer, were members (if a
mutual insurer) or subscribers (if a reciprocal insurer) at any
time within one year prior to the date of issuance of the order
to show cause under RCW 48.31.190.
(2) Such assessment or assessments shall cover the
excess of the probable liabilities over the reasonable value of
the assets, together with the estimated cost of collection and
percentage of uncollectibility thereof. The total of all assessments against any member or subscriber with respect to any
policy, whether levied pursuant to this chapter or pursuant to
any other provisions of this code, shall be for no greater
amount than that specified in the policy or policies of the
member or subscriber and as limited under this code; except
that if the court finds that the policy was issued at a rate of
premium below the minimum rate lawfully permitted for the
risk insured, the court may determine the upper limit of such
assessment upon the basis of such minimum rate.
(3) No assessment shall be levied against any member or
subscriber with respect to any nonassessable policy issued in
accordance with this code. [1947 c 79 § .31.33; Rem. Supp.
1947 § 45.31.33.]
48.31.340
48.31.340 Order for payment of assessment. After
levy of assessment as provided in RCW 48.31.330, upon the
filing of a further detailed report by the commissioner, the
court shall issue an order directing each member (if a mutual
insurer) or each subscriber (if a reciprocal insurer) if he shall
not pay the amount assessed against him to the commissioner
on or before a day to be specified in the order, to show cause
why he should not be held liable to pay such assessment
together with costs as set forth in RCW 48.31.360 and why
the commissioner should not have judgment therefor. [1947
c 79 § .31.34; Rem. Supp. 1947 § 45.31.34.]
48.31.350
48.31.350 Publication, transmittal of assessment
order. The commissioner shall cause a notice of such assessment order setting forth a brief summary of the contents of
such order to be:
(1) Published in such manner as shall be directed by the
court; and
(2) Enclosed in a sealed envelope, addressed and mailed
postage prepaid to each member or subscriber liable thereunder at his last known address as it appears on the records of
the insurer, at least twenty days before the return day of the
order to show cause provided for in RCW 48.31.340. [1947
c 79 § .31.35; Rem. Supp. 1947 § 45.31.35.]
48.31.360
48.31.360 Judgment upon the assessment. (1) On the
return day of the order to show cause provided for in RCW
48.31.340 if the member or subscriber does not appear and
serve verified objections upon the commissioner, the court
shall make an order adjudging that such member or subscriber is liable for the amount of the assessment against him
together with ten dollars costs, and that the commissioner
may have judgment against the member or subscriber therefor.
(2) If on such return day the member or subscriber shall
appear and serve verified objections upon the commissioner
(2004 Ed.)
48.31B.005
there shall be a full hearing before the court or a referee to
hear and determine, who, after such hearing, shall make an
order either negativing the liability of the member or subscriber to pay the assessment or affirming his liability to pay
the whole or some part thereof together with twenty-five dollars costs and the necessary disbursements incurred at such
hearing, and directing that the commissioner in the latter case
may have judgment therefor.
(3) A judgment upon any such order shall have the same
force and effect, and may be entered and docketed, and may
be appealed from as if it were a judgment in an original action
brought in the court in which the proceeding is pending.
[1947 c 79 § .31.36; Rem. Supp. 1947 § 45.31.36.]
Chapter 48.31B
Chapter 48.31B RCW
INSURER HOLDING COMPANY ACT
Sections
48.31B.005 Definitions.
48.31B.010 Insurer ceases to control subsidiary—Disposal of investment.
48.31B.015 Control of insurer—Acquisition, merger, or exchange—Preacquisition notification—Jurisdiction of courts.
48.31B.020 Acquisition of insurer—Change in control—Definitions—
Exemptions—Competition—Preacquisition notification—
Violations—Penalties.
48.31B.025 Registration with commissioner—Information required—
Rule making—Disclaimer of affiliation—Failure to file.
48.31B.030 Insurer subject to registration—Standards for transactions
within a holding company system—Extraordinary dividends
or distributions—Insurer's surplus.
48.31B.035 Examination of insurers—Commissioner may order production of information—Failure to comply—Costs of examination.
48.31B.040 Rule making.
48.31B.045 Violations of chapter—Commissioner may seek superior court
order.
48.31B.050 Violations of chapter—Penalties—Civil forfeitures—
Orders—Referral to prosecuting attorney—Imprisonment.
48.31B.055 Violations of chapter—Impairment of financial condition—
Commissioner may take possession.
48.31B.060 Order for liquidation or rehabilitation—Recovery of distributions or payments—Personal liability—Maximum amount
recoverable.
48.31B.065 Violations of chapter—Contrary to interests of policyholders
or the public—Suspension, revocation, or nonrenewal of
license.
48.31B.070 Person aggrieved by actions of commissioner.
48.31B.900 Short title.
48.31B.901 Severability—1993 c 462.
48.31B.902 Implementation—1993 c 462.
48.31B.005 Definitions. As used in this chapter, the
following terms have the meanings set forth in this section,
unless the context requires otherwise.
(1) An "affiliate" of, or person "affiliated" with, a specific person, is a person who directly, or indirectly through
one or more intermediaries, controls, or is controlled by, or is
under common control with, the person specified.
(2) The term "control," including the terms "controlling,"
"controlled by," and "under common control with," means
the possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of a person, whether through the ownership of voting securities, by
contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the
result of an official position with or corporate office held by
the person. Control is presumed to exist if a person, directly
or indirectly, owns, controls, holds with the power to vote, or
holds proxies representing, ten percent or more of the voting
48.31B.005
[Title 48 RCW—page 195]
48.31B.010
Title 48 RCW: Insurance
securities of any other person. This presumption may be
rebutted by a showing made in a manner similar to that provided by RCW 48.31B.025(11) that control does not exist in
fact. The commissioner may determine, after furnishing all
persons in interest notice and opportunity to be heard and
making specific findings of fact to support such determination, that control exists in fact, notwithstanding the absence
of a presumption to that effect.
(3) An "insurance holding company system" consists of
two or more affiliated persons, one or more of which is an
insurer.
(4) The term "insurer" has the same meaning as set forth
in RCW 48.01.050; it does not include agencies, authorities,
or instrumentalities of the United States, its possessions and
territories, the commonwealth of Puerto Rico, the District of
Columbia, or a state or political subdivision of a state.
(5) A "person" is an individual, a corporation, a partnership, an association, a joint stock company, a trust, an unincorporated organization, a similar entity, or any combination
of the foregoing acting in concert, but does not include a joint
venture partnership exclusively engaged in owning, managing, leasing, or developing real or tangible personal property.
(6) A "securityholder" of a specified person is one who
owns a security of that person, including common stock, preferred stock, debt obligations, and any other security convertible into or evidencing the right to acquire any of the foregoing.
(7) A "subsidiary" of a specified person is an affiliate
controlled by that person directly or indirectly through one or
more intermediaries.
(8) The term "voting security" includes a security convertible into or evidencing a right to acquire a voting security.
[1993 c 462 § 2.]
48.31B.010
48.31B.010 Insurer ceases to control subsidiary—
Disposal of investment. If an insurer ceases to control a subsidiary, it shall dispose of any investment in the subsidiary
within three years from the time of the cessation of control or
within such further time as the commissioner may prescribe,
unless at any time after the investment has been made, the
investment meets the requirements for investment under any
other section of this Title, and the insurer has notified the
commissioner thereof. [1993 c 462 § 3.]
48.31B.015
48.31B.015 Control of insurer—Acquisition, merger,
or exchange—Preacquisition notification—Jurisdiction
of courts. (1) No person other than the issuer may make a
tender offer for or a request or invitation for tenders of, or
enter into an agreement to exchange securities of, seek to
acquire, or acquire, in the open market or otherwise, voting
security of a domestic insurer if, after the consummation
thereof, the person would, directly or indirectly, or by conversion or by exercise of a right to acquire, be in control of
the insurer. No person may enter into an agreement to merge
with or otherwise to acquire control of a domestic insurer or
person controlling a domestic insurer unless, at the time the
offer, request, or invitation is made or the agreement is
entered into, or before the acquisition of the securities if no
offer or agreement is involved, the person has filed with the
commissioner and has sent to the insurer, a statement con[Title 48 RCW—page 196]
taining the information required by this section and the offer,
request, invitation, agreement, or acquisition has been
approved by the commissioner as prescribed in this section.
For purposes of this section a domestic insurer includes
a person controlling a domestic insurer unless the person, as
determined by the commissioner, is either directly or through
its affiliates primarily engaged in business other than the
business of insurance. However, the person shall file a preacquisition notification with the commissioner containing the
information set forth in RCW 48.31B.020(3)(a) sixty days
before the proposed effective date of the acquisition. Persons
who fail to file the required preacquisition notification with
the commissioner are subject to the penalties in RCW
48.31B.020(5)(c). For the purposes of this section, "person"
does not include a securities broker holding, in usual and customary broker's function, less than twenty percent of the voting securities of an insurance company or of a person who
controls an insurance company.
(2) The statement to be filed with the commissioner
under this section must be made under oath or affirmation
and must contain the following information:
(a) The name and address of each person by whom or on
whose behalf the merger or other acquisition of control
referred to in subsection (1) of this section is to be effected,
hereinafter called "acquiring party," and:
(i) If that person is an individual, his or her principal
occupation and all offices and positions held during the past
five years, and any conviction of crimes other than minor
traffic violations during the past ten years;
(ii) If that person is not an individual, a report of the
nature of its business operations during the past five years or
for such lesser period as the person and any predecessors
have been in existence; an informative description of the
business intended to be done by the person's subsidiaries; any
convictions of crimes during the past ten years; and a list of
all individuals who are or who have been selected to become
directors or executive officers of the person, or who perform
or will perform functions appropriate to those positions. The
list must include for each such individual the information
required by (a)(i) of this subsection.
(b) The source, nature, and amount of the consideration
used or to be used in effecting the merger or other acquisition
of control, a description of any transaction in which funds
were or are to be obtained for any such purpose, including a
pledge of the insurer's stock, or the stock of any of its subsidiaries or controlling affiliates, and the identity of persons furnishing the consideration. However, where a source of the
consideration is a loan made in the lender's ordinary course of
business, the identity of the lender must remain confidential
if the person filing the statement so requests.
(c) Fully audited financial information as to the earnings
and financial condition of each acquiring party for the preceding five fiscal years of each acquiring party, or for such
lesser period as the acquiring party and any predecessors
have been in existence, and similar unaudited information as
of a date not earlier than ninety days before the filing of the
statement.
(d) Any plans or proposals that each acquiring party may
have to liquidate the insurer, to sell its assets or merge or consolidate it with any person, or to make any other material
change in its business or corporate structure or management.
(2004 Ed.)
Insurer Holding Company Act
(e) The number of shares of any security referred to in
subsection (1) of this section that each acquiring party proposes to acquire, the terms of the offer, request, invitation,
agreement, or acquisition referred to in subsection (1) of this
section, and a statement as to the method by which the fairness of the proposal was arrived at.
(f) The amount of each class of any security referred to in
subsection (1) of this section that is beneficially owned or
concerning which there is a right to acquire beneficial ownership by each acquiring party.
(g) A full description of any contracts, arrangements, or
understandings with respect to any security referred to in subsection (1) of this section in which an acquiring party is
involved, including but not limited to transfer of any of the
securities, joint ventures, loan or option arrangements, puts or
calls, guarantees of loans, guarantees against loss or guarantees of profits, division of losses or profits, or the giving or
withholding of proxies. The description must identify the persons with whom the contracts, arrangements, or understandings have been entered into.
(h) A description of the purchase of any security referred
to in subsection (1) of this section during the twelve calendar
months before the filing of the statement, by an acquiring
party, including the dates of purchase, names of the purchasers, and consideration paid or agreed to be paid for the security.
(i) A description of any recommendations to purchase
any security referred to in subsection (1) of this section made
during the twelve calendar months before the filing of the
statement, by an acquiring party, or by anyone based upon
interviews or at the suggestion of the acquiring party.
(j) Copies of all tender offers for, requests or invitations
for tenders of, exchange offers for, and agreements to acquire
or exchange any securities referred to in subsection (1) of this
section, and, if distributed, of additional soliciting material
relating to the securities.
(k) The term of an agreement, contract, or understanding
made with or proposed to be made with a broker-dealer as to
solicitation or securities referred to in subsection (1) of this
section for tender, and the amount of fees, commissions, or
other compensation to be paid to broker-dealers with regard
to the securities.
(l) Such additional information as the commissioner may
prescribe by rule as necessary or appropriate for the protection of policyholders of the insurer or in the public interest.
If the person required to file the statement referred to in
subsection (1) of this section is a partnership, limited partnership, syndicate, or other group, the commissioner may
require that the information called for by (a) through (l) of
this subsection shall be given with respect to each partner of
the partnership or limited partnership, each member of the
syndicate or group, and each person who controls a partner or
member. If a partner, member, or person is a corporation, or
the person required to file the statement referred to in subsection (1) of this section is a corporation, the commissioner
may require that the information called for by (a) through (l)
of this subsection shall be given with respect to the corporation, each officer and director of the corporation, and each
person who is directly or indirectly the beneficial owner of
more than ten percent of the outstanding voting securities of
the corporation.
(2004 Ed.)
48.31B.015
If a material change occurs in the facts set forth in the
statement filed with the commissioner and sent to the insurer
under this section, an amendment setting forth the change,
together with copies of all documents and other material relevant to the change, must be filed with the commissioner and
sent to the insurer within two business days after the person
learns of the change.
(3) If an offer, request, invitation, agreement, or acquisition referred to in subsection (1) of this section is proposed to
be made by means of a registration statement under the Securities Act of 1933 or in circumstances requiring the disclosure
of similar information under the Securities Exchange Act of
1934, or under a state law requiring similar registration or
disclosure, the person required to file the statement referred
to in subsection (1) of this section may use those documents
in furnishing the information called for by that statement.
(4)(a) The commissioner shall approve a merger or other
acquisition of control referred to in subsection (1) of this section unless, after a public hearing thereon, he or she finds
that:
(i) After the change of control, the domestic insurer
referred to in subsection (1) of this section would not be able
to satisfy the requirements for the issuance of a license to
write the line or lines of insurance for which it is presently
licensed;
(ii) The effect of the merger or other acquisition of control would be substantially to lessen competition in insurance
in this state or tend to create a monopoly therein. In applying
the competitive standard in (a)(ii) of this subsection:
(A) The informational requirements of RCW
48.31B.020(3)(a) and the standards of RCW
48.31B.020(4)(b) apply;
(B) The commissioner may not disapprove the merger or
other acquisition if the commissioner finds that any of the situations meeting the criteria provided by RCW
48.31B.020(4)(c) exist; and
(C) The commissioner may condition the approval of the
merger or other acquisition on the removal of the basis of disapproval within a specified period of time;
(iii) The financial condition of an acquiring party is such
as might jeopardize the financial stability of the insurer, or
prejudice the interest of its policyholders;
(iv) The plans or proposals that the acquiring party has to
liquidate the insurer, sell its assets, consolidate or merge it
with any person, or to make any other material change in its
business or corporate structure or management, are unfair and
unreasonable to policyholders of the insurer and not in the
public interest;
(v) The competence, experience, and integrity of those
persons who would control the operation of the insurer are
such that it would not be in the interest of policyholders of the
insurer and of the public to permit the merger or other acquisition of control; or
(vi) The acquisition is likely to be hazardous or prejudicial to the insurance-buying public.
(b) The commissioner shall approve an exchange or
other acquisition of control referred to in this section within
sixty days after he or she declares the statement filed under
this section to be complete and after holding a public hearing.
At the hearing, the person filing the statement, the insurer,
and any person whose significant interest is determined by
[Title 48 RCW—page 197]
48.31B.020
Title 48 RCW: Insurance
the commissioner to be affected may present evidence, examine and cross-examine witnesses, and offer oral and written
arguments and in connection therewith may conduct discovery proceedings in the same manner as is allowed in the superior court of this state. All discovery proceedings must be
concluded not later than three days before the commencement of the public hearing.
(c) The commissioner may retain at the acquiring person's expense any attorneys, actuaries, accountants, and other
experts not otherwise a part of the commissioner's staff as
may be reasonably necessary to assist the commissioner in
reviewing the proposed acquisition of control. All reasonable
costs of a hearing held under this section, as determined by
the commissioner, including costs associated with the commissioner's use of investigatory, professional, and other necessary personnel, mailing of required notices and other information, and use of equipment or facilities, must be paid
before issuance of the commissioner's order by the acquiring
person.
(5) This section does not apply to:
(a) A transaction that is subject to RCW 48.31.010, dealing with the merger or consolidation of two or more insurers;
(b) An offer, request, invitation, agreement, or acquisition that the commissioner by order has exempted from this
section as: (i) Not having been made or entered into for the
purpose and not having the effect of changing or influencing
the control of a domestic insurer, or (ii) otherwise not comprehended within the purposes of this section.
(6) The following are violations of this section:
(a) The failure to file a statement, amendment, or other
material required to be filed under subsection (1) or (2) of this
section; or
(b) The effectuation or an attempt to effectuate an acquisition of control of, or merger with, a domestic insurer unless
the commissioner has given approval thereto.
(7) The courts of this state have jurisdiction over every
person not resident, domiciled, or authorized to do business
in this state who files a statement with the commissioner
under this section, and over all actions involving that person
arising out of violations of this section, and each such person
is deemed to have performed acts equivalent to and constituting an appointment by that person of the commissioner to be
the person's true and lawful attorney upon whom may be
served all lawful process in an action, suit, or proceeding arising out of violations of this section. Copies of all such lawful
process shall be served on the commissioner and transmitted
by registered or certified mail by the commissioner to such
person at the person's last known address. [1993 c 462 § 4.]
48.31B.020
48.31B.020 Acquisition of insurer—Change in control—Definitions—Exemptions—Competition—Preacquisition notification—Violations—Penalties. (1) The
definitions in this subsection apply only for the purposes of
this section.
(a) "Acquisition" means an agreement, arrangement, or
activity, the consummation of which results in a person
acquiring directly or indirectly the control of another person,
and includes but is not limited to the acquisition of voting
securities, the acquisition of assets, bulk reinsurance, and
mergers.
[Title 48 RCW—page 198]
(b) An "involved insurer" includes an insurer which
either acquires or is acquired, is affiliated with an acquirer or
acquired, or is the result of a merger.
(2)(a) Except as exempted in (b) of this subsection, this
section applies to any acquisition in which there is a change
in control of an insurer authorized to do business in this state.
(b) This section does not apply to the following:
(i) An acquisition subject to approval or disapproval by
the commissioner under RCW 48.31B.015;
(ii) A purchase of securities solely for investment purposes so long as the securities are not used by voting or otherwise to cause or attempt to cause the substantial lessening
of competition in any insurance market in this state. If a purchase of securities results in a presumption of control under
RCW 48.31B.005(2), it is not solely for investment purposes
unless the commissioner of the insurer's state of domicile
accepts a disclaimer of control or affirmatively finds that
control does not exist and the disclaimer action or affirmative
finding is communicated by the domiciliary commissioner to
the commissioner of this state;
(iii) The acquisition of a person by another person when
neither person is directly nor through affiliates primarily
engaged in the business of insurance, if preacquisition notification is filed with the commissioner in accordance with subsection (3)(a) of this section sixty days before the proposed
effective date of the acquisition. However, preacquisition
notification is not required for exclusion from this section if
the acquisition would otherwise be excluded from this section by this subsection (2)(b);
(iv) The acquisition of already affiliated persons;
(v) An acquisition if, as an immediate result of the acquisition:
(A) In no market would the combined market share of
the involved insurers exceed five percent of the total market;
(B) There would be no increase in any market share; or
(C) In no market would:
(I) The combined market share of the involved insurers
exceed twelve percent of the total market; and
(II) The market share increase by more than two percent
of the total market.
For the purpose of (b)(v) of this subsection, a "market"
means direct written insurance premium in this state for a line
of business as contained in the annual statement required to
be filed by insurers licensed to do business in this state;
(vi) An acquisition for which a preacquisition notification would be required under this section due solely to the
resulting effect on the ocean marine insurance line of business;
(vii) An acquisition of an insurer whose domiciliary
commissioner affirmatively finds: That the insurer is in failing condition; there is a lack of feasible alternative to improving such condition; and the public benefits of improving the
insurer's condition through the acquisition exceed the public
benefits that would arise from not lessening competition; and
the findings are communicated by the domiciliary commissioner to the commissioner of this state.
(3) An acquisition covered by subsection (2) of this section may be subject to an order under subsection (5) of this
section unless the acquiring person files a preacquisition notification and the waiting period has expired. The acquired person may file a preacquisition notification.
(2004 Ed.)
Insurer Holding Company Act
(a) The preacquisition notification must be in such form
and contain such information as prescribed by the commissioner relating to those markets that, under subsection
(2)(b)(v) of this section, cause the acquisition not to be
exempted from this section. The commissioner may require
such additional material and information as he or she deems
necessary to determine whether the proposed acquisition, if
consummated, would violate the competitive standard of subsection (4) of this section. The required information may
include an opinion of an economist as to the competitive
impact of the acquisition in this state accompanied by a summary of the education and experience of the person indicating
his or her ability to render an informed opinion.
(b) The waiting period required begins on the date the
commissioner declares the preacquisition notification to be
complete and ends on the earlier of the sixtieth day after the
date of the declaration or the termination of the waiting
period by the commissioner. Before the end of the waiting
period, the commissioner may require the submission of
additional needed information relevant to the proposed acquisition. If additional information is required, the waiting
period ends on the earlier of the sixtieth day after the commissioner declares he or she has received the additional
information or the termination of the waiting period by the
commissioner.
(4)(a) The commissioner may enter an order under subsection (5)(a) of this section with respect to an acquisition if
there is substantial evidence that the effect of the acquisition
may be substantially to lessen competition in a line of insurance in this state or tend to create a monopoly therein or if the
insurer fails to file adequate information in compliance with
subsection (3) of this section.
(b) In determining whether a proposed acquisition would
violate the competitive standard of (a) of this subsection, the
commissioner shall consider the following:
(i) An acquisition covered under subsection (2) of this
section involving two or more insurers competing in the same
market is prima facie evidence of violation of the competitive
standards:
(A) If the market is highly concentrated and the involved
insurers possess the following shares of the market:
Insurer A
4%
10%
15%
Insurer B
4% or more
2% or more
1% or more; or
(B) If the market is not highly concentrated and the
involved insurers possess the following shares of the market:
Insurer A
5%
10%
15%
19%
Insurer B
5% or more
4% or more
3% or more
1% or more
A highly concentrated market is one in which the share
of the four largest insurers is seventy-five percent or more of
the market. Percentages not shown in the tables are interpolated proportionately to the percentages that are shown. If
more than two insurers are involved, exceeding the total of
the two columns in the table is prima facie evidence of viola(2004 Ed.)
48.31B.020
tion of the competitive standard in (a) of this subsection. For
the purpose of (b)(i) of this subsection, the insurer with the
largest share of the market is Insurer A.
(ii) There is a significant trend toward increased concentration when the aggregate market share of a grouping of the
largest insurers in the market, from the two largest to the
eight largest, has increased by seven percent or more of the
market over a period of time extending from a base year five
to ten years before the acquisition up to the time of the acquisition. An acquisition or merger covered under subsection (2)
of this section involving two or more insurers competing in
the same market is prima facie evidence of violation of the
competitive standard in (a) of this subsection if:
(A) There is a significant trend toward increased concentration in the market;
(B) One of the insurers involved is one of the insurers in
a grouping of such large insurers showing the requisite
increase in the market share; and
(C) Another involved insurer's market is two percent or
more.
(iii) For the purposes of (b) of this subsection:
(A) The term "insurer" includes a company or group of
companies under common management, ownership, or control;
(B) The term "market" means the relevant product and
geographical markets. In determining the relevant product
and geographical markets, the commissioner shall give due
consideration to, among other things, the definitions or
guidelines, if any, adopted by the National Association of
Insurance Commissioners and to information, if any, submitted by parties to the acquisition. In the absence of sufficient
information to the contrary, the relevant product market is
assumed to be the direct written insurance premium for a line
of business, such line being that used in the annual statement
required to be filed by insurers doing business in this state,
and the relevant geographical market is assumed to be this
state;
(C) The burden of showing prima facie evidence of violation of the competitive standard rests upon the commissioner.
(iv) Even though an acquisition is not prima facie violative of the competitive standard under (b)(i) and (ii) of this
subsection, the commissioner may establish the requisite
anticompetitive effect based upon other substantial evidence.
Even though an acquisition is prima facie violative of the
competitive standard under (b)(i) and (ii) of this subsection, a
party may establish the absence of the requisite anticompetitive effect based upon other substantial evidence. Relevant
factors in making a determination under (b)(iv) of this
subsection include, but are not limited to, the following:
Market shares, volatility of ranking of market leaders, number of competitors, concentration, trend of concentration in
the industry, and ease of entry and exit into the market.
(c) An order may not be entered under subsection (5)(a)
of this section if:
(i) The acquisition will yield substantial economies of
scale or economies in resource use that cannot be feasibly
achieved in any other way, and the public benefits that would
arise from the economies exceed the public benefits that
would arise from not lessening competition; or
[Title 48 RCW—page 199]
48.31B.025
Title 48 RCW: Insurance
(ii) The acquisition will substantially increase the availability of insurance, and the public benefits of the increase
exceed the public benefits that would arise from not lessening
competition.
(5)(a)(i) If an acquisition violates the standards of this
section, the commissioner may enter an order:
(A) Requiring an involved insurer to cease and desist
from doing business in this state with respect to the line or
lines of insurance involved in the violation; or
(B) Denying the application of an acquired or acquiring
insurer for a license to do business in this state.
(ii) The commissioner may not enter the order unless:
(A) There is a hearing; (B) notice of the hearing is issued
before the end of the waiting period and not less than fifteen
days before the hearing; and (C) the hearing is concluded and
the order is issued no later than sixty days after the end of the
waiting period. Every order must be accompanied by a written decision of the commissioner setting forth his or her findings of fact and conclusions of law.
(iii) An order entered under (a) of this subsection may
not become final earlier than thirty days after it is issued, during which time the involved insurer may submit a plan to
remedy the anticompetitive impact of the acquisition within a
reasonable time. Based upon the plan or other information,
the commissioner shall specify the conditions, if any, under
the time period during which the aspects of the acquisition
causing a violation of the standards of this section would be
remedied and the order vacated or modified.
(iv) An order pursuant to (a) of this subsection does not
apply if the acquisition is not consummated.
(b) A person who violates a cease and desist order of the
commissioner under (a) of this subsection and while the order
is in effect, may, after notice and hearing and upon order of
the commissioner, be subject at the discretion of the commissioner to one or more of the following:
(i) A monetary penalty of not more than ten thousand
dollars for every day of violation; or
(ii) Suspension or revocation of the person's license; or
(iii) Both (b)(i) and (b)(ii) of this subsection.
(c) An insurer or other person who fails to make a filing
required by this section and who also fails to demonstrate a
good faith effort to comply with the filing requirement, is
subject to a civil penalty of not more than fifty thousand dollars.
(6) RCW 48.31B.045 (2) and (3) and 48.31B.050 do not
apply to acquisitions covered under subsection (2) of this section. [1993 c 462 § 5.]
48.31B.025 Registration with commissioner—Information required—Rule making—Disclaimer of affiliation—Failure to file. (1) Every insurer authorized to do
business in this state that is a member of an insurance holding
company system shall register with the commissioner, except
a foreign insurer subject to registration requirements and
standards adopted by statute or regulation in the jurisdiction
of its domicile that are substantially similar to those contained in:
(a) This section;
(b) RCW 48.31B.030 (1)(a), (2), and (3); and
(c) Either RCW 48.31B.030(1)(b) or a provision such as
the following: Each registered insurer shall keep current the
48.31B.025
[Title 48 RCW—page 200]
information required to be disclosed in its registration statement by reporting all material changes or additions within fifteen days after the end of the month in which it learns of each
change or addition.
An insurer subject to registration under this section shall
register within fifteen days after it becomes subject to registration, and annually thereafter by May 15th of each year for
the previous calendar year, unless the commissioner for good
cause shown extends the time for registration, and then
within the extended time. The commissioner may require an
insurer authorized to do business in the state that is a member
of a holding company system, but that is not subject to registration under this section, to furnish a copy of the registration
statement, the summary specified in subsection (3) of this
section, or other information filed by the insurance company
with the insurance regulatory authority of its domiciliary
jurisdiction.
(2) An insurer subject to registration shall file the registration statement on a form prescribed by the commissioner,
containing the following current information:
(a) The capital structure, general financial condition,
ownership, and management of the insurer and any person
controlling the insurer;
(b) The identity and relationship of every member of the
insurance holding company system;
(c) The following agreements in force, and transactions
currently outstanding or that have occurred during the last
calendar year between the insurer and its affiliates:
(i) Loans, other investments, or purchases, sales, or
exchanges of securities of the affiliates by the insurer or of
the insurer by its affiliates;
(ii) Purchases, sales, or exchange of assets;
(iii) Transactions not in the ordinary course of business;
(iv) Guarantees or undertakings for the benefit of an
affiliate that result in an actual contingent exposure of the
insurer's assets to liability, other than insurance contracts
entered into in the ordinary course of the insurer's business;
(v) All management agreements, service contracts, and
cost-sharing arrangements;
(vi) Reinsurance agreements;
(vii) Dividends and other distributions to shareholders;
and
(viii) Consolidated tax allocation agreements;
(d) Any pledge of the insurer's stock, including stock of
subsidiary or controlling affiliate, for a loan made to a member of the insurance holding company system;
(e) Other matters concerning transactions between registered insurers and affiliates as may be included from time to
time in registration forms adopted or approved by the commissioner.
(3) Registration statements must contain a summary outlining all items in the current registration statement representing changes from the prior registration statement.
(4) No information need be disclosed on the registration
statement filed under subsection (2) of this section if the
information is not material for the purposes of this section.
Unless the commissioner by rule or order provides otherwise,
sales, purchases, exchanges, loans or extensions of credit,
investments, or guarantees involving one-half of one percent
or less of an insurer's admitted assets as of the 31st day of the
(2004 Ed.)
Insurer Holding Company Act
previous December are not material for purposes of this section.
(5)(a) Subject to RCW 48.31B.030(2), each registered
insurer shall report to the commissioner all dividends and
other distributions to shareholders within five business days
after their declaration and at least fifteen business days before
payment, and shall provide the commissioner such other
information as may be required by rule.
(b) If the commissioner determines that a registered
insurer's surplus as regards policyholders is not reasonable in
relation to the insurer's outstanding liabilities and adequate to
its financial needs, the commissioner may order the registered insurance company to limit or discontinue the payment
of stockholder dividends until such time as the surplus is adequate.
(6) A person within an insurance holding company system subject to registration shall provide complete and accurate information to an insurer, where the information is reasonably necessary to enable the insurer to comply with this
chapter.
(7) The commissioner shall terminate the registration of
an insurer that demonstrates that it no longer is a member of
an insurance holding company system.
(8) The commissioner may require or allow two or more
affiliated insurers subject to registration under this section to
file a consolidated registration statement.
(9) The commissioner may allow an insurer authorized
to do business in this state and part of an insurance holding
company system to register on behalf of an affiliated insurer
that is required to register under subsection (1) of this section
and to file all information and material required to be filed
under this section.
(10) This section does not apply to an insurer, information, or transaction if and to the extent that the commissioner
by rule or order exempts the insurer, information, or transaction from this section.
(11) A person may file with the commissioner a disclaimer of affiliation with an authorized insurer, or an insurer
or a member of an insurance holding company system may
file the disclaimer. The person making such a filing with the
commissioner shall at the same time deliver a complete copy
of the filing to each domestic insurer which is the subject of
such filing. The disclaimer must fully disclose all material
relationships and bases for affiliation between the person and
the insurer as well as the basis for disclaiming the affiliation.
After a disclaimer has been filed, the insurer is relieved of
any duty to register or report under this section that may arise
out of the insurer's relationship with the person unless and
until the commissioner disallows the disclaimer. The commissioner shall disallow the disclaimer only after furnishing
all parties in interest with notice and opportunity to be heard
and after making specific findings of fact to support the disallowance.
(12) Failure to file a registration statement or a summary
of the registration statement required by this section within
the time specified for the filing is a violation of this section.
[2000 c 214 § 1; 1993 c 462 § 6.]
48.31B.030 Insurer subject to registration—Standards for transactions within a holding company system—Extraordinary dividends or distributions—
48.31B.030
(2004 Ed.)
48.31B.030
Insurer's surplus. (1)(a) Transactions within a holding
company system to which an insurer subject to registration is
a party are subject to the following standards:
(i) The terms must be fair and reasonable;
(ii) Charges or fees for services performed must be fair
and reasonable;
(iii) Expenses incurred and payment received must be
allocated to the insurer in conformity with customary insurance accounting practices consistently applied;
(iv) The books, accounts, and records of each party to all
such transactions must be so maintained as to clearly and
accurately disclose the nature and details of the transactions,
including such accounting information as is necessary to support the reasonableness of the charges or fees to the respective parties; and
(v) The insurer's surplus regarding policyholders after
dividends or distributions to shareholders or affiliates must
be reasonable in relation to the insurer's outstanding liabilities and adequate to its financial needs.
(b) The following transactions involving a domestic
insurer and a person in its holding company system may not
be entered into unless the insurer has notified the commissioner in writing of its intention to enter into the transaction
and the commissioner declares the notice to be sufficient at
least sixty days before, or such shorter period as the commissioner may permit, and the commissioner has not disapproved it within that period:
(i) Sales, purchases, exchanges, loans or extensions of
credit, guarantees, or investments if the transactions are equal
to or exceed: (A) With respect to nonlife insurers, the lesser
of three percent of the insurer's admitted assets or twenty-five
percent of surplus as regards policyholders; (B) with respect
to life insurers, three percent of the insurer's admitted assets;
each as of the 31st day of the previous December;
(ii) Loans or extensions of credit to any person who is
not an affiliate, where the insurer makes the loans or extensions of credit with the agreement or understanding that the
proceeds of the transactions, in whole or in substantial part,
are to be used to make loans or extensions of credit to, to purchase assets of, or to make investments in, an affiliate of the
insurer making the loans or extensions of credit if the transactions are equal to or exceed: (A) With respect to nonlife
insurers, the lesser of three percent of the insurer's admitted
assets or twenty-five percent of surplus as regards policyholders; (B) with respect to life insurers, three percent of the
insurer's admitted assets; each as of the 31st day of the previous December;
(iii) Reinsurance agreements or modifications to them in
which the reinsurance premium or a change in the insurer's
liabilities equals or exceeds five percent of the insurer's surplus as regards policyholders, as of the 31st day of the previous December, including those agreements that may require
as consideration the transfer of assets from an insurer to a
nonaffiliate, if an agreement or understanding exists between
the insurer and nonaffiliate that any portion of the assets will
be transferred to one or more affiliates of the insurer;
(iv) Management agreements, service contracts, and
cost-sharing arrangements; and
(v) Material transactions, specified by rule, that the commissioner determines may adversely affect the interests of the
insurer's policyholders.
[Title 48 RCW—page 201]
48.31B.035
Title 48 RCW: Insurance
Nothing contained in this section authorizes or permits a
transaction that, in the case of an insurer not a member of the
same holding company system, would be otherwise contrary
to law.
(c) A domestic insurer may not enter into transactions
that are part of a plan or series of like transactions with persons within the holding company system if the purpose of
those separate transactions is to avoid the statutory threshold
amount and thus avoid the review that would occur otherwise. If the commissioner determines that the separate transactions were entered into over a twelve-month period for that
purpose, the commissioner may apply for an order as
described in RCW 48.31B.045(1).
(d) The commissioner, in reviewing transactions under
(b) of this subsection, shall consider whether the transactions
comply with the standards set forth in (a) of this subsection
and whether they may adversely affect the interests of policyholders.
(e) The commissioner shall be notified within thirty days
of an investment of the domestic insurer in any one corporation if the total investment in the corporation by the insurance
holding company system exceeds ten percent of the corporation's voting securities.
(2)(a) No domestic insurer may pay an extraordinary
dividend or make any other extraordinary distribution to its
shareholders until: (i) Thirty days after the commissioner
declares that he or she has received sufficient notice of the
declaration thereof and has not within that period disapproved the payment; or (ii) the commissioner has approved
the payment within the thirty-day period.
(b) For purposes of this section, an extraordinary dividend or distribution is a dividend or distribution of cash or
other property whose fair market value, together with that of
other dividends or distributions made within the period of
twelve consecutive months ending on the date on which the
proposed dividend is scheduled for payment or distribution,
exceeds the greater of: (i) Ten percent of the company's surplus as regards policyholders as of the 31st day of the previous December; or (ii) the net gain from operations of the
company if the company is a life insurance company, or the
net income if the company is not a life insurance company,
for the twelve month period ending the 31st day of the previous December, but does not include pro rata distributions of
any class of the company's own securities.
(c) Notwithstanding any other provision of law, an
insurer may declare an extraordinary dividend or distribution
that is conditional upon the commissioner's approval. The
declaration confers no rights upon shareholders until: (i) The
commissioner has approved the payment of the dividend or
distribution; or (ii) the commissioner has not disapproved the
payment within the thirty-day period referred to in (a) of this
subsection.
(3) For purposes of this chapter, in determining whether
an insurer's surplus as regards policyholders is reasonable in
relation to the insurer's outstanding liabilities and adequate to
its financial needs, the following factors, among others, may
be considered:
(a) The size of the insurer as measured by its assets, capital and surplus, reserves, premium writings, insurance in
force, and other appropriate criteria;
[Title 48 RCW—page 202]
(b) The extent to which the insurer's business is diversified among the several lines of insurance;
(c) The number and size of risks insured in each line of
business;
(d) The extent of the geographical dispersion of the
insurer's insured risks;
(e) The nature and extent of the insurer's reinsurance program;
(f) The quality, diversification, and liquidity of the
insurer's investment portfolio;
(g) The recent past and projected future trend in the size
of the insurer's surplus as regards policyholders;
(h) The surplus as regards policyholders maintained by
other comparable insurers;
(i) The adequacy of the insurer's reserves;
(j) The quality and liquidity of investments in affiliates.
The commissioner may discount any such investment or may
treat any such investment as a disallowed asset for purposes
of determining the adequacy of surplus as regards policyholders whenever in his or her judgment the investment so
warrants; and
(k) The quality of the insurer's earnings and the extent to
which the reported earnings include extraordinary items.
[1993 c 462 § 7.]
48.31B.035
48.31B.035 Examination of insurers—Commissioner
may order production of information—Failure to comply—Costs of examination. (1) Subject to the limitation
contained in this section and in addition to the powers that the
commissioner has under chapter 48.03 RCW relating to the
examination of insurers, the commissioner also may order an
insurer registered under RCW 48.31B.025 to produce such
records, books, or other information papers in the possession
of the insurer or its affiliates as are reasonably necessary to
ascertain the financial condition of the insurer or to determine
compliance with this title. If the insurer fails to comply with
the order, the commissioner may examine the affiliates to
obtain the information.
(2) The commissioner may retain at the registered
insurer's expense such attorneys, actuaries, accountants, and
other experts not otherwise a part of the commissioner's staff
as are reasonably necessary to assist in the conduct of the
examination under subsection (1) of this section. Persons so
retained are under the direction and control of the commissioner and shall act in a purely advisory capacity.
(3) Each registered insurer producing for examination
records, books, and papers under subsection (1) of this section are liable for and shall pay the expense of the examination in accordance with RCW 48.03.060. [1993 c 462 § 8.]
48.31B.040
48.31B.040 Rule making. The commissioner may,
upon notice and opportunity for all interested persons to be
heard, adopt rules and issue orders that are necessary to carry
out this chapter. [1993 c 462 § 9.]
48.31B.045
48.31B.045 Violations of chapter—Commissioner
may seek superior court order. (1) Whenever it appears to
the commissioner that an insurer or a director, officer,
employee, or agent of the insurer has committed or is about to
commit a violation of this chapter or any rule or order of the
(2004 Ed.)
Insurer Holding Company Act
commissioner under this chapter, the commissioner may
apply to the superior court for Thurston county or to the court
for the county in which the principal office of the insurer is
located for an order enjoining the insurer or the director,
officer, employee, or agent from violating or continuing to
violate this chapter or any such rule or order, and for such
other equitable relief as the nature of the case and the interest
of the insurer's policyholders, creditors, and shareholders or
the public may require.
(2) No security that is the subject of an agreement or
arrangement regarding acquisition, or that is acquired or to be
acquired, in contravention of this chapter or of a rule or order
of the commissioner under this chapter may be voted at a
shareholders' meeting, or may be counted for quorum purposes. Any action of shareholders requiring the affirmative
vote of a percentage of shares may be taken as though the
securities were not issued and outstanding, but no action
taken at any such meeting may be invalidated by the voting of
the securities, unless the action would materially affect control of the insurer or unless the courts of this state have so
ordered. If an insurer or the commissioner has reason to
believe that a security of the insurer has been or is about to be
acquired in contravention of this chapter or of a rule or order
of the commissioner under this chapter, the insurer or the
commissioner may apply to the superior court for Thurston
county or to the court for the county in which the insurer has
its principal place of business to enjoin an offer, request, invitation, agreement, or acquisition made in contravention of
RCW 48.31B.015 or a rule or order of the commissioner
under that section to enjoin the voting of a security so
acquired, to void a vote of the security already cast at a meeting of shareholders, and for such other relief as the nature of
the case and the interest of the insurer's policyholders, creditors, and shareholders or the public may require.
(3) If a person has acquired or is proposing to acquire
voting securities in violation of this chapter or a rule or order
of the commissioner under this chapter, the superior court for
Thurston county or the court for the county in which the
insurer has its principal place of business may, on such notice
as the court deems appropriate, upon the application of the
insurer or the commissioner seize or sequester voting securities of the insurer owned directly or indirectly by the person,
and issue such order with respect to the securities as may be
appropriate to carry out this chapter.
Notwithstanding any other provisions of law, for the purposes of this chapter, the situs of the ownership of the securities of domestic insurers is in this state. [1993 c 462 § 10.]
48.31B.050
48.31B.050 Violations of chapter—Penalties—Civil
forfeitures—Orders—Referral to prosecuting attorney—
Imprisonment. (1) The commissioner shall require, after
notice and hearing, an insurer failing, without just cause, to
file a registration statement as required in this chapter, to pay
a penalty of not more than ten thousand dollars per day. The
maximum penalty under this section is one million dollars.
The commissioner may reduce the penalty if the insurer
demonstrates to the commissioner that the imposition of the
penalty would constitute a financial hardship to the insurer.
The commissioner shall pay a fine collected under this section to the state treasurer for the account of the general fund.
(2004 Ed.)
48.31B.060
(2) Every director or officer of an insurance holding
company system who knowingly violates this chapter, or participates in, or assents to, or who knowingly permits an
officer or agent of the insurer to engage in transactions or
make investments that have not been properly reported or
submitted under RCW 48.31B.025(1) or 48.31B.030(1)(b) or
(2), or that violate this chapter, shall pay, in their individual
capacity, a civil forfeiture of not more than ten thousand dollars per violation, after notice and hearing before the commissioner. In determining the amount of the civil forfeiture, the
commissioner shall take into account the appropriateness of
the forfeiture with respect to the gravity of the violation, the
history of previous violations, and such other matters as justice may require.
(3) Whenever it appears to the commissioner that an
insurer subject to this chapter or a director, officer, employee,
or agent of the insurer has engaged in a transaction or entered
into a contract that is subject to RCW 48.31B.030 and that
would not have been approved had approval been requested,
the commissioner may order the insurer to cease and desist
immediately any further activity under that transaction or
contract. After notice and hearing the commissioner may also
order the insurer to void any such contracts and restore the
status quo if that action is in the best interest of the policyholders, creditors, or the public.
(4) Whenever it appears to the commissioner that an
insurer or a director, officer, employee, or agent of the insurer
has committed a willful violation of this chapter, the commissioner may refer the matter to the prosecuting attorney of
Thurston county or the county in which the principal office of
the insurer is located. An insurer that willfully violates this
chapter may be fined not more than one million dollars. Any
individual who willfully violates this chapter may be fined in
his or her individual capacity not more than ten thousand dollars, or be imprisoned for not more than three years, or both.
(5) An officer, director, or employee of an insurance
holding company system who willfully and knowingly subscribes to or makes or causes to be made a false statement or
false report or false filing with the intent to deceive the commissioner in the performance of his or her duties under this
chapter, upon conviction thereof, shall be imprisoned for not
more than three years or fined not more than ten thousand
dollars or both. The officer, director, or employee upon
whom the fine is imposed shall pay the fine in his or her individual capacity. [1993 c 462 § 11.]
48.31B.055
48.31B.055 Violations of chapter—Impairment of
financial condition—Commissioner may take possession.
Whenever it appears to the commissioner that a person has
committed a violation of this chapter that so impairs the
financial condition of a domestic insurer as to threaten insolvency or make the further transaction of business by it hazardous to its policyholders, creditors, shareholders, or the
public, the commissioner may proceed as provided in RCW
48.31.030 and 48.31.040 to take possession of the property of
the domestic insurer and to conduct the business of the
insurer. [1993 c 462 § 12.]
48.31B.060
48.31B.060 Order for liquidation or rehabilitation—
Recovery of distributions or payments—Personal liabil[Title 48 RCW—page 203]
48.31B.065
Title 48 RCW: Insurance
ity—Maximum amount recoverable. (1) If an order for
liquidation or rehabilitation of a domestic insurer has been
entered, the receiver appointed under the order may recover
on behalf of the insurer: (a) From a parent corporation or
holding company or person or affiliate who otherwise controlled the insurer, the amount of distributions, other than distributions of shares of the same class of stock, paid by the
insurer on its capital stock; or (b) a payment in the form of a
bonus, termination settlement, or extraordinary lump sum
salary adjustment made by the insurer or its subsidiary to a
director, officer, or employee, where the distribution or payment under (a) or (b) of this subsection is made at any time
during the one year before the petition for liquidation, conservation, or rehabilitation, as the case may be, subject to the
limitations of subsections (2), (3), and (4) of this section.
(2) No such distribution is recoverable if it is shown that
when paid, the distribution was lawful and reasonable, and
that the insurer did not know and could not reasonably have
known that the distribution might adversely affect the ability
of the insurer to fulfill its contractual obligations.
(3) A person who was a parent corporation or holding
company or a person who otherwise controlled the insurer or
affiliate when the distributions were paid is liable up to the
amount of distributions or payments under subsection (1) of
this section the person received. A person who controlled the
insurer at the time the distributions were declared is liable up
to the amount of distributions he or she would have received
if they had been paid immediately. If two or more persons are
liable with respect to the same distributions, they are jointly
and severally liable.
(4) The maximum amount recoverable under this section
is the amount needed in excess of all other available assets of
the impaired or insolvent insurer to pay the contractual obligations of the impaired or insolvent insurer and to reimburse
any guaranty funds.
(5) To the extent that a person liable under subsection (3)
of this section is insolvent or otherwise fails to pay claims
due from it under those provisions, its parent corporation or
holding company or person who otherwise controlled it at the
time the distribution was paid, is jointly and severally liable
for a resulting deficiency in the amount recovered from the
parent corporation or holding company or person who otherwise controlled it. [1993 c 462 § 13.]
48.31B.065
48.31B.065 Violations of chapter—Contrary to interests of policyholders or the public—Suspension, revocation, or nonrenewal of license. Whenever it appears to the
commissioner that a person has committed a violation of this
chapter that makes the continued operation of an insurer contrary to the interests of policyholders or the public, the commissioner may, after giving notice and an opportunity to be
heard, determine to suspend, revoke, or refuse to renew the
insurer's license or authority to do business in this state for
such period as he or she finds is required for the protection of
policyholders or the public. Such a determination must be
accompanied by specific findings of fact and conclusions of
law. [1993 c 462 § 14.]
48.31B.070
48.31B.070 Person aggrieved by actions of commissioner. (1) A person aggrieved by an act, determination, rule,
[Title 48 RCW—page 204]
order, or any other action of the commissioner under this
chapter may proceed in accordance with the Administrative
Procedure Act, chapter 34.05 RCW.
(2) A person aggrieved by a failure of the commissioner
to act or make a determination required by this chapter may
petition the commissioner under the procedure described in
RCW 34.05.330. [1993 c 462 § 15.]
48.31B.900
48.31B.900 Short title. This chapter may be known and
cited as the Insurer Holding Company Act. [1993 c 462 § 1.]
48.31B.901
48.31B.901 Severability—1993 c 462. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1993 c 462 § 112.]
48.31B.902
48.31B.902 Implementation—1993 c 462. The insurance commissioner may take such steps as are necessary to
ensure that this act is implemented on July 25, 1993. [1993 c
462 § 106.]
Chapter 48.31C RCW
HOLDING COMPANY ACT FOR HEALTH CARE
SERVICE CONTRACTORS AND HEALTH
MAINTENANCE ORGANIZATIONS
Chapter 48.31C
Sections
48.31C.010 Definitions.
48.31C.020 Acquisition of a foreign health carrier—Preacquisition notification—Review.
48.31C.030 Acquisition of a domestic health carrier—Filing—Review—
Jurisdiction of courts.
48.31C.040 Registration with commissioner—Information required—
Rule making—Disclaimer of affiliation—Failure to file.
48.31C.050 Health carrier subject to registration—Standards for transactions within a holding company system—Notice to commissioner—Review.
48.31C.060 Extraordinary dividends or distributions—Restrictions—Definition of distribution.
48.31C.070 Examination of health carriers—Commissioner may order
production of information—Failure to comply—Costs.
48.31C.080 Violations of chapter—Commissioner may seek superior court
order.
48.31C.090 Violations of chapter—Penalties—Civil forfeitures—
Orders—Referral to prosecuting attorney—Imprisonment.
48.31C.100 Violations of chapter—Impairment of financial condition.
48.31C.110 Order for liquidation or rehabilitation—Recovery of distributions or payments—Liability—Maximum amount recoverable.
48.31C.120 Violations of chapter—Contrary to interests of subscribers or
the public.
48.31C.130 Confidential proprietary and trade secret information—
Exempt from public disclosure—Exceptions.
48.31C.140 Person aggrieved by actions of commissioner.
48.31C.150 Rule making.
48.31C.160 Dual holding company system membership.
48.31C.900 Severability—2001 c 179.
48.31C.901 Effective date—2001 c 179.
48.31C.010
48.31C.010 Definitions. The definitions in this section
apply throughout this chapter, unless the context clearly
requires otherwise.
(1) "Acquisition" or "acquire" means an agreement,
arrangement, or activity, the consummation of which results
in a person acquiring directly or indirectly the control of
another person, and includes but is not limited to the acquisi(2004 Ed.)
Health Carrier Holding Company Act
tion of voting securities, all or substantially all of the assets,
bulk reinsurance, consolidations, affiliations, and mergers.
(2) "Affiliate" of, or person "affiliated" with, a specific
person, means a person who directly, or indirectly through
one or more intermediaries, controls, or is controlled by, or is
under common control with, the person specified.
(3) "Control," including the terms "controlling," "controlled by," and "under common control with," means the
possession, direct or indirect, of the power to direct or cause
the direction of the management and policies of a person
whether through the ownership of voting securities, voting
rights, by contract other than a commercial contract for
goods, nonmanagement services, a debt obligation which is
not convertible into a right to acquire a voting security, or
otherwise, unless the power is the result of an official position with or corporate office held by the person.
(a) For a for-profit person, control is presumed to exist if
a person, directly or indirectly, owns, controls, holds with the
power to vote, or holds proxies representing, ten percent or
more of the voting securities of any other person. This presumption may be rebutted by a showing that control does not
exist in fact. A person may file with the commissioner a disclaimer of control of a health carrier. The disclaimer must
fully disclose all material relationships and bases for affiliation between the person and the health carrier as well as the
basis for disclaiming the control. After furnishing all persons
in interest notice and opportunity to be heard and making specific findings of fact to support such a determination, the
commissioner may:
(i) Allow a disclaimer; or
(ii) Disallow a disclaimer notwithstanding the absence of
a presumption to that effect.
(b) For a nonprofit corporation organized under chapters
24.03 and 24.06 RCW, control is presumed to exist if a person, directly or indirectly, owns, controls, holds with the
power to vote, or holds proxies representing a majority of
voting rights of the person or the power to elect or appoint a
majority of the board of directors, trustees, or other governing body of the person, unless the power is the result of an
official position of, or corporate office held by, the person.
(c) Control includes either permanent or temporary control, or both.
(4) "Domestic health carrier" means a health care service
contractor as defined in RCW 48.44.010, or a health maintenance organization as defined in RCW 48.46.020, that is
formed under the laws of this state.
(5) "Foreign health carrier" means a health care service
contractor as defined in RCW 48.44.010, or a health maintenance organization as defined in RCW 48.46.020, that is
formed under the laws of the United States, of a state or territory of the United States other than this state, or the District
of Columbia.
(6) "Health carrier holding company system" means two
or more affiliated persons, one or more of which is a health
care service contractor or health maintenance organization.
(7) "Health coverage business" means the business of a
disability insurer authorized under chapter 48.05 RCW, a
health care service contractor registered under chapter 48.44
RCW, and a health maintenance organization registered
under chapter 48.46 RCW, entering into any policy, contract,
(2004 Ed.)
48.31C.020
or agreement to arrange, reimburse, or pay for health care services.
(8) "Involved carrier" means an insurer, health care service contractor, or health maintenance organization, which
either acquires or is acquired, is affiliated with an acquirer or
acquired, or is the result of a merger.
(9) "Person" means an individual, corporation, partnership, association, joint stock company, limited liability company, trust, unincorporated organization, similar entity, or
any combination acting in concert, but does not include a
joint venture partnership exclusively engaged in owning,
managing, leasing, or developing real or personal property.
(10) "Security holder" of a specified person means one
who owns a security of that person, including (a) common
stock, (b) preferred stock, (c) debt obligations convertible
into the right to acquire voting securities, and any other security convertible into or evidencing the right to acquire (a)
through (c) of this subsection.
(11) "Subsidiary" of a specified person means an affiliate
controlled by that person directly or indirectly through one or
more intermediaries.
(12) "Voting security" includes a security convertible
into or evidencing a right to acquire a voting security. [2001
c 179 § 1.]
48.31C.020 Acquisition of a foreign health carrier—
Preacquisition notification—Review. (1) No person may
acquire control of a foreign health carrier registered to do
business in this state unless a preacquisition notification is
filed with the commissioner under this section and the waiting period has expired. If a preacquisition notification is not
filed with the commissioner an involved carrier may be subject to an order under subsection (3) of this section. The
acquired person may file a preacquisition notification.
(a) The preacquisition notification must be in the form
and contain the information prescribed by the commissioner.
The commissioner may require additional material and information necessary to determine whether the proposed acquisition, if consummated, would have the effect of substantially
lessening competition, or tending to create a monopoly, in the
health coverage business in this state. The required information may include an opinion of an economist as to the competitive impact of the acquisition in this state accompanied by
a summary of the education and experience of the person
indicating his or her ability to render an informed opinion.
(b) The waiting period required under this section begins
on the date the commissioner receives the preacquisition
notification and ends on the earlier of the sixtieth day after
the date of the receipt by the commissioner of the preacquisition notification or the termination of the waiting period by
the commissioner. Before the end of the waiting period, the
commissioner may require the submission of additional
needed information relevant to the proposed acquisition. If
additional information is required, the waiting period ends on
the earlier of the thirtieth day after the commissioner has
received the additional information or the termination of the
waiting period by the commissioner.
(2)(a) The commissioner may enter an order under subsection (3)(a) of this section with respect to an acquisition if:
(i) The health carrier fails to file adequate information in
compliance with subsection (1)(a) of this section; or
48.31C.020
[Title 48 RCW—page 205]
48.31C.030
Title 48 RCW: Insurance
(ii) The antitrust section of the office of the attorney general and any federal antitrust enforcement agency has chosen
not to undertake a review of the proposed acquisition and the
commissioner pursuant to his or her own review finds that
there is substantial evidence that the effect of the acquisition
may substantially lessen competition or tend to create a
monopoly in the health coverage business.
(b) If the antitrust section of the office of the attorney
general undertakes a review of the proposed transaction then
the attorney general shall seek input from the commissioner
throughout the review.
(c) If the antitrust section of the office of the attorney
general does not undertake a review of the proposed acquisition and the review is being conducted by the commissioner,
then the commissioner shall seek input from the attorney general throughout the review.
(3)(a)(i) If an acquisition violates the standards of this
section, the commissioner may enter an order:
(A) Requiring an involved carrier to cease and desist
from doing business in this state with respect to business as a
health care service contractor or health maintenance organization; or
(B) Denying the application of an acquired or acquiring
carrier for a license, certificate of authority, or registration to
do business in this state.
(ii) The commissioner may not enter the order unless:
(A) There is a hearing;
(B) Notice of the hearing is issued before the end of the
waiting period and not less than fifteen days before the hearing; and
(C) The hearing is concluded and the order is issued no
later than thirty days after the conclusion of the hearing.
Every order must be accompanied by a written decision of the
commissioner setting forth his or her findings of fact and conclusions of law.
(iii) An order entered under (a) of this subsection may
not become final earlier than thirty days after it is issued, during which time the involved carrier may submit a plan to remedy the anticompetitive impact of the acquisition within a
reasonable time. Based upon the plan or other information,
the commissioner shall specify the conditions, if any, under
the time period during which the aspects of the acquisition
causing a violation of the standards of this section would be
remedied and the order vacated or modified.
(iv) An order under (a) of this subsection does not apply
if the acquisition is not consummated.
(b) A person who violates a cease and desist order of the
commissioner under (a) of this subsection and while the order
is in effect, may, after notice and hearing and upon order of
the commissioner, be subject at the discretion of the commissioner to one or more of the following:
(i) A monetary penalty of not more than ten thousand
dollars for every day of violation; or
(ii) Suspension or revocation of the person's license, certificate of authority, or registration; or
(iii) Both (b)(i) and (b)(ii) of this subsection.
(c) A carrier or other person who fails to make a filing
required by this section and who also fails to demonstrate a
good faith effort to comply with the filing requirement, is
subject to a civil penalty of not more than fifty thousand dollars.
[Title 48 RCW—page 206]
(4) An order may not be entered under subsection (3)(a)
of this section if:
(a) The acquisition will yield substantial economies of
scale or economies in resource use that cannot be feasibly
achieved in any other way, and the public benefits that would
arise from the economies exceed the public benefits that
would arise from more competition; or
(b) The acquisition will substantially increase the availability of health care coverage, and the public benefits of the
increase exceed the public benefits that would arise from
more competition.
(5)(a) RCW 48.31C.080 (2) and (3) and 48.31C.090 do
not apply to acquisitions covered under this section.
(b) This section does not apply to the following:
(i) An acquisition subject to approval or disapproval by
the commissioner under RCW 48.31C.030;
(ii) A purchase of securities solely for investment purposes so long as the securities are not used by voting or otherwise to cause or attempt to cause the substantial lessening
of competition in the health coverage business in this state;
(iii) The acquisition of a person by another person when
neither person is directly, nor through affiliates, primarily
engaged in the business of a domestic or foreign health carrier, if preacquisition notification is filed with the commissioner in accordance with subsection (1) of this section sixty
days before the proposed effective date of the acquisition.
However, preacquisition notification is not required for
exclusion from this section if the acquisition would otherwise
be excluded from this section by this subsection (5)(b);
(iv) The acquisition of already affiliated persons;
(v) An acquisition if, as an immediate result of the acquisition:
(A) In no market would the combined market share of
the involved carriers exceed five percent of the total market;
(B) There would be no increase in any market share; or
(C) In no market would:
(I) The combined market share of the involved carriers
exceed twelve percent of the total market; and
(II) The market share increase by more than two percent
of the total market.
For the purpose of (b)(v) of this subsection, "market"
means direct written premium in this state for a line of business as contained in the annual statement required to be filed
by carriers licensed to do business in this state;
(vi) An acquisition of a health carrier whose domiciliary
commissioner affirmatively finds: That the health carrier is
in failing condition; there is a lack of feasible alternatives to
improving such a condition; and the public benefits of
improving the health carrier's condition through the acquisition exceed the public benefits that would arise from more
competition, and the findings are communicated by the domiciliary commissioner to the commissioner of this state. [2001
c 179 § 2.]
48.31C.030 Acquisition of a domestic health carrier—Filing—Review—Jurisdiction of courts. (1) No person may acquire control of a domestic health carrier unless
the person has filed with the commissioner and has sent to the
health carrier a statement containing the information required
by this section and the acquisition has been approved by the
commissioner as prescribed in this section.
48.31C.030
(2004 Ed.)
Health Carrier Holding Company Act
(2) The statement to be filed with the commissioner
under this section must be made under oath or affirmation
and must contain the following information:
(a) The name and address of the acquiring party. For purposes of this section, "acquiring party" means each person by
whom or on whose behalf the acquisition of control under
subsection (1) of this section is to be effected:
(i) If the acquiring party is an individual, his or her principal occupation and all offices and positions held during the
past five years, and any conviction of crimes other than minor
traffic violations during the past ten years;
(ii) If the acquiring party is not an individual, a report of
the nature of its business operations during the past five years
or for such lesser period as the person and any predecessors
have been in existence; an informative description of the
business intended to be done by the person's subsidiaries; any
convictions of crimes during the past ten years; and a list of
all individuals who are or who have been selected to become
directors, trustees, or executive officers of the person, or who
perform or will perform functions appropriate to those positions. The list must include for each such individual the information required by (a)(i) of this subsection.
(b) The source, nature, and amount of the consideration
used or to be used in effecting the acquisition of control, a
description of any transaction in which funds were or are to
be obtained for any such purpose, including a pledge of
assets, a pledge of the health carrier's stock, or the stock of
any of its subsidiaries or controlling affiliates, and the identity of persons furnishing the consideration. However, where
a source of the consideration is a loan made in the lender's
ordinary course of business, the identity of the lender must
remain confidential if the person filing the statement so
requests.
(c) Fully audited financial information as to the earnings
and financial condition of each acquiring party for the preceding five fiscal years of each acquiring party, or for such
lesser period as the acquiring party and any predecessors
have been in existence, and similar unaudited information as
of a date not earlier than ninety days before the filing of the
statement. If the acquiring party and any predecessor has not
had fully audited financial statements prepared during any of
the preceding five years, then reviewed financial statements
may be substituted for those years, except for the latest fiscal
year which must be fully audited financial statements.
(d) Any plans or proposals that each acquiring party may
have to liquidate the health carrier, to sell its assets or merge
or consolidate it with any person, or to make any other material change in its business or corporate structure or management.
(e) The number of shares of any security or number and
description of other voting rights referred to in RCW
48.31C.010(3) that each acquiring party proposes to acquire,
the terms of the offer, request, invitation, agreement, or
acquisition under RCW 48.31C.010(3), and a statement as to
the method by which the fairness of the proposal was arrived
at.
(f) The amount of each class of any security referred to in
RCW 48.31C.010(3) that is beneficially owned or concerning
which there is a right to acquire beneficial ownership by each
acquiring party.
(2004 Ed.)
48.31C.030
(g) A full description of any contracts, arrangements, or
understandings with respect to any security referred to in
RCW 48.31C.010(3) in which an acquiring party is involved,
including but not limited to transfer of any of the securities,
joint ventures, loan or option arrangements, puts or calls,
guarantees of loans, guarantees against loss or guarantees of
profits, division of losses or profits, or the giving or withholding of proxies. The description must identify the persons with
whom the contracts, arrangements, or understandings have
been entered into.
(h) A description of the purchase of any security referred
to in RCW 48.31C.010(3) during the twelve calendar months
before the filing of the statement, by an acquiring party,
including the dates of purchase, names of the purchasers, and
consideration paid or agreed to be paid for the security.
(i) A description of any recommendations to purchase
any security referred to in RCW 48.31C.010(3) made during
the twelve calendar months before the filing of the statement,
by an acquiring party, or by anyone based upon interviews
with outside parties or at the suggestion of the acquiring
party.
(j) Copies of all tender offers for, requests or invitations
for tenders of, exchange offers for, and agreements to acquire
or exchange any securities referred to in RCW
48.31C.010(3), and, if distributed, of additional soliciting
material relating to the securities.
(k) The term of an agreement, contract, or understanding
made with or proposed to be made with a broker-dealer as to
solicitation or securities referred to in RCW 48.31C.010(3)
for tender, and the amount of fees, commissions, or other
compensation to be paid to broker-dealers with regard to the
securities.
(l) Such additional information as the commissioner may
prescribe by rule as necessary or appropriate for the protection of subscribers of the health carrier or in the public interest.
If the person required to file the statement referred to in
subsection (1) of this section is a partnership, limited partnership, syndicate, or other group, the commissioner may
require that the information required under (a) through (l) of
this subsection must be given with respect to each partner of
the partnership or limited partnership, each member of the
syndicate or group, and each person who controls a partner or
member. If a partner, member, or person is a corporation, or
the person required to file the statement referred to in subsection (1) of this section is a corporation, the commissioner
may require that the information required under (a) through
(l) of this subsection must be given with respect to the corporation, each officer and director of the corporation, and each
person who is directly or indirectly the beneficial owner of
more than ten percent of the outstanding voting securities of
the corporation.
If a material change occurs in the facts set forth in the
statement filed with the commissioner and sent to the health
carrier under this section, an amendment setting forth the
change, together with copies of all documents and other
material relevant to the change, must be filed with the commissioner and sent to the health carrier within two business
days after the person learns of the change.
(3) If an offer, request, invitation, agreement, or acquisition referred to in subsection (1) of this section is proposed to
[Title 48 RCW—page 207]
48.31C.030
Title 48 RCW: Insurance
be made by means of a registration statement under the Securities Act of 1933 or in circumstances requiring the disclosure
of similar information under the Securities Exchange Act of
1934, or under a state law requiring similar registration or
disclosure, the person required to file the statement referred
to in subsection (1) of this section may use those documents
in furnishing the information called for by that statement.
(4) The commissioner shall approve an exchange or
other acquisition of control referred to in this section within
sixty days after he or she declares the statement filed under
this section to be complete and if a hearing is requested by the
commissioner or either party to the transaction, after holding
a public hearing. Unless the commissioner declares the statement to be incomplete and requests additional information,
the statement is deemed complete sixty days after receipt of
the statement by the commissioner. If the commissioner
declares the statement to be incomplete and requests additional information, the sixty-day time period in which the
statement is deemed complete shall be tolled until fifteen
days after receipt by the commissioner of the additional
information. If the commissioner declares the statement to be
incomplete, the commissioner shall promptly notify the person filing the statement of the filing deficiencies and shall set
forth with specificity the additional information required to
make the filing complete. At the hearing, the person filing the
statement, the health carrier, and any person whose significant interest is determined by the commissioner to be
affected may present evidence, examine and cross-examine
witnesses, and offer oral and written arguments, and in connection therewith may conduct discovery proceedings in the
same manner as is allowed in the superior court of this state.
All discovery proceedings must be concluded not later than
three business days before the commencement of the public
hearing.
(5)(a) The commissioner shall approve an acquisition of
control referred to in subsection (1) of this section unless,
after a public hearing, he or she finds that:
(i) After the change of control, the domestic health carrier referred to in subsection (1) of this section would not be
able to satisfy the requirements for registration as a health
carrier;
(ii) The antitrust section of the office of the attorney general and any federal antitrust enforcement agency has chosen
not to undertake a review of the proposed acquisition and the
commissioner pursuant to his or her own review finds that
there is substantial evidence that the effect of the acquisition
may substantially lessen competition or tend to create a
monopoly in the health coverage business.
If the antitrust section of the office of the attorney general does not undertake a review of the proposed acquisition
and the review is being conducted by the commissioner, then
the commissioner shall seek input from the attorney general
throughout the review.
If the antitrust section of the office of the attorney general undertakes a review of the proposed transaction then the
attorney general shall seek input from the commissioner
throughout the review. As to the commissioner, in making
this determination:
(A) The informational requirements of RCW
48.31C.020(1)(a) apply;
[Title 48 RCW—page 208]
(B) The commissioner may not disapprove the acquisition if the commissioner finds that:
(I) The acquisition will yield substantial economies of
scale or economies in resource use that cannot be feasibly
achieved in any other way, and the public benefits that would
arise from the economies exceed the public benefits that
would arise from more competition; or
(II) The acquisition will substantially increase or will
prevent significant deterioration in the availability of health
care coverage, and the public benefits of the increase exceed
the public benefits that would arise from more competition;
(C) The commissioner may condition the approval of the
acquisition on the removal of the basis of disapproval, as follows, within a specified period of time:
(I) The financial condition of an acquiring party is such
as might jeopardize the financial stability of the health carrier, or prejudice the interest of its subscribers;
(II) The plans or proposals that the acquiring party has to
liquidate the health carrier, sell its assets, consolidate or
merge it with any person, or to make any other material
change in its business or corporate structure or management,
are unfair and unreasonable to subscribers of the health carrier and not in the public interest;
(III) The competence, experience, and integrity of those
persons who would control the operation of the health carrier
are such that it would not be in the interest of subscribers of
the health carrier and of the public to permit the merger or
other acquisition of control; or
(IV) The acquisition is likely to be hazardous or prejudicial to the insurance-buying public.
(b) The commissioner may retain at the acquiring person's expense any attorneys, actuaries, accountants, and other
experts not otherwise a part of the commissioner's staff as
may be reasonably necessary to assist the commissioner in
reviewing the proposed acquisition of control. All reasonable
costs of a hearing held under this section, as determined by
the commissioner, including reasonable costs associated with
the commissioner's use of investigatory, professional, and
other necessary personnel, mailing of required notices and
other information, and use of equipment or facilities, must be
paid before issuance of the commissioner's order by the
acquiring person.
(c) The commissioner may condition approval of an
acquisition on the removal of the basis of disapproval within
a specified period of time.
(6) Upon the request of a party to the acquisition the
commissioner may order that this section does not apply to an
offer, request, invitation, agreement, or acquisition as:
(a) Not having been made or entered into for the purpose
and not having the effect of changing or influencing the control of a domestic health carrier; or
(b) Otherwise not comprehended within the purposes of
this section.
(7) The following are violations of this section:
(a) The failure to file a statement, amendment, or other
material required to be filed under subsection (1) or (2) of this
section; or
(b) The effectuation or an attempt to effectuate an acquisition of control of a domestic health carrier unless the commissioner has given approval.
(2004 Ed.)
Health Carrier Holding Company Act
(8) The courts of this state have jurisdiction over every
person not resident, domiciled, or authorized to do business
in this state who files a statement with the commissioner
under this section, and over all actions involving that person
arising out of violations of this section, and such a person has
performed acts equivalent to and constituting an appointment
by that person of the commissioner to be the person's true and
lawful attorney upon whom may be served all lawful process
in an action, suit, or proceeding arising out of violations of
this section. Copies of all such lawful process shall be served
on the commissioner and transmitted by registered or certified mail by the commissioner to such a person at the person's
last known address. [2001 c 179 § 3.]
48.31C.040 Registration with commissioner—Information required—Rule making—Disclaimer of affiliation—Failure to file. (1) Every health carrier registered to
do business in this state that is a member of a health carrier
holding company system shall register with the commissioner, except a foreign health carrier subject to registration
requirements and standards adopted by statute or regulation
in the jurisdiction of its domicile that are substantially similar
to those contained in:
(a) This section;
(b) RCW 48.31C.050(1) and 48.31C.060; and
(c) Either RCW 48.31C.050(1)(b) or a provision such as
the following: Each registered health carrier shall keep current the information required to be disclosed in its registration statement by reporting all material changes or additions
within fifteen days after the end of the month in which it
learns of each change or addition.
A health carrier subject to registration under this section
shall register within one hundred twenty days of May 7,
2001, and thereafter within fifteen days after it becomes subject to registration, and annually thereafter by May 15th of
each year for the previous calendar year, unless the commissioner for good cause shown extends the time for registration,
and then within the extended time. The commissioner may
require a health carrier authorized to do business in the state
that is a member of a health carrier holding company system,
but that is not subject to registration under this section, to furnish a copy of the registration statement, the summary specified in subsection (3) of this section, or other information
filed by the health carrier with the regulatory authority of its
domiciliary jurisdiction.
(2) A health carrier subject to registration shall file the
registration statement on a form prescribed by the commissioner, containing the following current information:
(a) The capital structure, general financial condition,
ownership, and management of the health carrier and any
person controlling the health carrier;
(b) The identity and relationship of every member of the
health carrier holding company system;
(c) The following agreements in force, and transactions
currently outstanding or that have occurred during the last
calendar year between the health carrier and its affiliates:
(i) Loans, other investments, or purchases, sales, or
exchanges of securities of the affiliates by the health carrier
or of the health carrier by its affiliates;
(ii) Purchases, sales, or exchange of assets;
(iii) Transactions not in the ordinary course of business;
48.31C.040
(2004 Ed.)
48.31C.040
(iv) Guarantees or undertakings for the benefit of an
affiliate that result in an actual contingent exposure of the
health carrier's assets to liability, other than subscriber contracts entered into in the ordinary course of the health carrier's
business;
(v) All management agreements, service contracts, and
cost-sharing arrangements;
(vi) Reinsurance agreements;
(vii) Dividends and other distributions to shareholders;
and
(viii) Consolidated tax allocation agreements;
(d) Any pledge of the health carrier's stock, including
stock of a subsidiary or controlling affiliate, for a loan made
to a member of the health carrier holding company system;
and
(e) Other matters concerning transactions between registered health carriers and affiliates as may be included from
time to time in registration forms adopted or approved by the
commissioner by rule.
(3) Registration statements must contain a summary outlining all items in the current registration statement representing changes from the prior registration statement.
(4) No information need be disclosed on the registration
statement filed under subsection (2) of this section if the
information is not material for the purposes of this section.
Unless the commissioner by rule or order provides otherwise,
sales, purchases, exchanges, loans or extensions of credit,
investments, or guarantees, involving two percent or less of a
health carrier's admitted assets as of the 31st day of the previous December are not material for purposes of this section.
(5) A person within a health carrier holding company
system subject to registration shall provide complete and
accurate information to a health carrier, where the information is reasonably necessary to enable the health carrier to
comply with this chapter.
(6) The commissioner shall terminate the registration of
a health carrier under this section that demonstrates that it no
longer is a member of a health carrier holding company system.
(7) The commissioner may require or allow two or more
affiliated health carriers subject to registration under this section to file a consolidated registration statement.
(8) The commissioner may allow a health carrier registered to do business in this state and part of a health carrier
holding company system to register on behalf of an affiliated
health carrier that is required to register under subsection (1)
of this section and to file all information and material
required to be filed under this section.
(9) This section does not apply to a health carrier, information, or transaction if, and to the extent that, the commissioner by rule or order exempts the health carrier, information, or transaction from this section.
(10) A person may file with the commissioner a disclaimer of affiliation with an authorized health carrier, or a
health carrier or a member of a health carrier holding company system may file the disclaimer. The disclaimer must
fully disclose all material relationships and bases for affiliation between the person and the health carrier as well as the
basis for disclaiming the affiliation. After a disclaimer has
been filed, the health carrier is relieved of any duty to register
or report under this section that may arise out of the health
[Title 48 RCW—page 209]
48.31C.050
Title 48 RCW: Insurance
carrier's relationship with the person unless and until the
commissioner disallows the disclaimer. The commissioner
shall disallow the disclaimer only after furnishing all parties
in interest with notice and opportunity to be heard and after
making specific findings of fact to support the disallowance.
(11) Failure to file a registration statement or a summary
of the registration statement required by this section within
the time specified for the filing is a violation of this section.
[2001 c 179 § 4.]
48.31C.050 Health carrier subject to registration—
Standards for transactions within a holding company system—Notice to commissioner—Review. (1) Transactions
within a health carrier holding company system to which a
health carrier subject to registration is a party are subject to
the following standards:
(a) The terms must be fair and reasonable;
(b) Charges or fees for services performed must be fair
and reasonable;
(c) Expenses incurred and payment received must be
allocated to the health carrier in conformity with customary
statutory accounting practices consistently applied;
(d) The books, accounts, and records of each party to all
such transactions must be so maintained as to clearly and
accurately disclose the nature and details of the transactions,
including such accounting information as is necessary to support the reasonableness of the charges or fees to the respective parties; and
(e) The health carrier's net worth after the transaction
must exceed the health carrier's company action level riskbased capital. In addition, the commissioner may disapprove
a transaction if the health carrier's risk-based capital net
worth is less than the product of 2.5 and the health carrier's
authorized control level risk-based capital and the commissioner reasonably believes that the health carrier's net worth
is at risk of falling below its company action level risk-based
capital due to anticipated future financial losses not reflected
in the risk-based capital calculation. This subsection (1)(e)
does not prohibit transactions that improve or help maintain
the health carrier's net worth.
(2) The following transactions, excepting those transactions which are subject to approval by the commissioner elsewhere within this title, involving a domestic health carrier
and a person in its health carrier holding company system
may not be entered into unless the health carrier has notified
the commissioner in writing of its intention to enter into the
transaction and the commissioner does not declare the notice
to be incomplete at least thirty days before, or such shorter
period as the commissioner may permit, and the commissioner has not disapproved it within that period. Unless the
commissioner declares the notice to be incomplete and
requests additional information, the notice is deemed complete thirty days after receipt of the notice by the commissioner. If the commissioner declares the notice to be incomplete, the thirty-day time period in which the notice is
deemed complete shall be tolled until fifteen days after the
receipt by the commissioner of the additional information:
(a) Sales, purchases, exchanges, loans or extensions of
credit, guarantees, or investments if the transactions are equal
to or exceed the lesser of (i) two months of the health carrier's
annualized claims and administrative costs, (ii) five percent
48.31C.050
[Title 48 RCW—page 210]
of the health carrier's admitted assets, or (iii) twenty-five percent of net worth, as of the 31st day of the previous December;
(b) Loans or extensions of credit to any person who is not
an affiliate, if the health carrier makes the loans or extensions
of credit with the agreement or understanding that the proceeds of the transactions, in whole or in substantial part, are
to be used to make loans or extensions of credit to, to purchase assets of, or to make investments in, an affiliate of the
health carrier making the loans or extensions of credit, if the
transactions are equal to or exceed the lesser of (i) two
months of the health carrier's annualized claims and administrative costs, (ii) three percent of the health carrier's admitted
assets, or (iii) twenty-five percent of net worth, as of the 31st
day of the previous December;
(c) Reinsurance agreements or modifications to them in
which the reinsurance premium or a change in the health carrier's liabilities equals or exceeds five percent of the health
carrier's net worth, as of the 31st day of the previous December, including those agreements that may require as consideration the transfer of assets from a health carrier to a nonaffiliate, if an agreement or understanding exists between the
health carrier and nonaffiliate that any portion of the assets
will be transferred to one or more affiliates of the health carrier;
(d) Management agreements, service contracts, and
cost-sharing arrangements; and
(e) Other acquisitions or dispositions of assets involving
more than five percent of the health carrier's admitted assets,
specified by rule, that the commissioner determines may
adversely affect the interests of the health carrier's subscribers.
(3) A domestic health carrier may not enter into transactions that are part of a plan or series of like transactions with
persons within the health carrier holding company system if
the aggregate amount of the transactions within a twelvemonth period exceed the statutory threshold amount. If the
commissioner determines that the separate transactions
entered into over a twelve-month period exceed the statutory
threshold amount, the commissioner may apply for an order
as described in RCW 48.31C.080(1).
(4) The commissioner, in reviewing transactions under
subsection (2) of this section, shall consider whether the
transactions comply with the standards set forth in subsection
(1) of this section.
(5) If a health carrier complies with the terms of a management agreement, service contract, or cost-sharing agreement that has not been disapproved by the commissioner
under subsection (2) of this section, then the health carrier is
not required to obtain additional approval from the commissioner for individual transactions conducted under the terms
of the management agreement, service contract, or cost-sharing agreement. The commissioner, however, retains the
authority to examine the individual transactions to determine
their compliance with the terms of the management agreement, service contract, or cost-sharing agreement and subsection (1) of this section.
(6) This section does not authorize or permit a transaction that, in the case of a health carrier not a member of the
same health carrier holding company system, would be otherwise contrary to law. [2001 c 179 § 5.]
(2004 Ed.)
Health Carrier Holding Company Act
48.31C.060
48.31C.060 Extraordinary dividends or distributions—Restrictions—Definition of distribution. (1)(a)
Subject to subsection (2) of this section, each registered
health carrier shall report to the commissioner all dividends
and other distributions to shareholders or members not within
the ordinary course of business within five business days
after their declaration and at least fifteen business days before
payment and shall provide the commissioner such other
information as may be required by rule.
(b) Any payment of a dividend or other distribution to
shareholders or members which would reduce the net worth
of the health carrier below the greater of (i) the minimum
required by RCW 48.44.037 for a health care service contractor or RCW 48.46.235 for a health maintenance organization
or (ii) the co mpany action level RBC un der RCW
48.43.300(9)(a) is prohibited.
(2)(a) No domestic health carrier may pay an extraordinary dividend or make any other extraordinary distribution to
its shareholders or members until: (i) Thirty days after the
commissioner has received sufficient notice of the declaration, unless the commissioner declares the notice to be
incomplete and requests additional information in which
event the thirty days shall be tolled until fifteen days after
receipt by the commissioner of the additional information or
thirty days after the original receipt of the notice by the commissioner, whichever is later, and the commissioner has not
within that period disapproved the payment; or (ii) the commissioner has approved the payment within the thirty-day
period.
(b) For purposes of this section, an extraordinary dividend or distribution is a dividend or distribution of cash or
other property whose fair market value, together with that of
other dividends or distributions not within the ordinary
course of business made within the period of twelve consecutive months ending on the date on which the proposed dividend is scheduled for payment or distribution, exceeds the
lesser of: (i) Ten percent of the health carrier's net worth as
of the 31st day of the previous December; or (ii) the net
income of the health carrier for the twelve-month period ending the 31st day of the previous December, but does not
include pro rata distributions of any class of the company's
own securities.
(c) Notwithstanding any other provision of law, a health
carrier may declare an extraordinary dividend or distribution
that is conditional upon the commissioner's approval. The
declaration confers no rights upon shareholders or members
until: (i) The commissioner has approved the payment of the
dividend or distribution; or (ii) the commissioner has not disapproved the payment within the thirty-day period referred to
in (a) of this subsection.
(3) For the purpose of this section, "distribution" means
a direct or indirect transfer of money or other property,
except its own shares, or incurrence of indebtedness by a
health carrier to or for the benefit of its members or shareholders in respect to any of its shares. A distribution may be
in the form of a declaration or payment of a dividend; a distribution in partial or complete liquidation, or upon voluntary
or involuntary dissolution; a purchase, redemption, or other
acquisition of shares; or a distribution of indebtedness in
respect to any of its shares. It does not include any remuneration to a shareholder or member made as consideration for
(2004 Ed.)
48.31C.080
services or items provided by such shareholder or member,
including but not limited to remuneration in exchange for
health care services, equipment or supplies, or administrative
support services or equipment. [2001 c 179 § 6.]
48.31C.070
48.31C.070 Examination of health carriers—Commissioner may order production of information—Failure
to comply—Costs. (1) Subject to the limitation contained in
this section and in addition to the powers that the commissioner has under RCW 48.44.145 relating to the examination
of health care service contractors and under RCW 48.46.120
relating to the examination of health maintenance organizations, the commissioner also may order a health carrier registered under RCW 48.31C.040 to produce such records,
books, or other information papers in the possession of the
health carrier or its affiliates as are reasonably necessary to
ascertain the financial condition of the health carrier or to
determine compliance with this title. If the health carrier fails
to comply with the order, the commissioner may examine the
affiliates to obtain the information.
(2) The commissioner may retain at the registered health
carrier's expense those attorneys, actuaries, accountants, and
other experts not otherwise a part of the commissioner's staff
as are reasonably necessary to assist in the conduct of the
examination under subsection (1) of this section. Persons so
retained are under the direction and control of the commissioner and shall act in a purely advisory capacity.
(3) Each registered health carrier producing for examination records, books, and papers under subsection (1) of this
section are liable for and shall pay the expense of the examination in accordance with RCW 48.03.060.
(4) Chapter 48.03 RCW applies to this chapter except to
the extent expressly modified by this chapter. [2001 c 179 §
7.]
48.31C.080
48.31C.080 Violations of chapter—Commissioner
may seek superior court order. (1) Whenever it appears to
the commissioner that a health carrier or a director, officer,
employee, or agent of the health carrier has committed or is
about to commit a violation of this chapter or any rule or
order of the commissioner under this chapter, the commissioner may apply to the superior court for Thurston county or
to the court for the county in which the principal office of the
health carrier is located for an order enjoining the health carrier or the director, officer, employee, or agent from violating
or continuing to violate this chapter or any such rule or order,
and for such other equitable relief as the nature of the case
and the interest of the health carrier's subscribers or the public
may require.
(2) No security that is the subject of an agreement or
arrangement regarding acquisition, or that is acquired or to be
acquired, in contravention of this chapter or of a rule or order
of the commissioner under this chapter may be voted at a
shareholders' meeting, or may be counted for quorum purposes. Any action of shareholders requiring the affirmative
vote of a percentage of shares may be taken as though the
securities were not issued and outstanding, but no action
taken at any such meeting may be invalidated by the voting of
the securities, unless the action would materially affect control of the health carrier or unless the courts of this state have
[Title 48 RCW—page 211]
48.31C.090
Title 48 RCW: Insurance
so ordered. If a health carrier or the commissioner has reason
to believe that a security of the health carrier has been or is
about to be acquired in contravention of this chapter or of a
rule or order of the commissioner under this chapter, the
health carrier or the commissioner may apply to the superior
court for Thurston county or to the court for the county in
which the health carrier has its principal place of business to
enjoin an offer, request, invitation, agreement, or acquisition
made in contravention of RCW 48.31C.030 or a rule or order
of the commissioner under that section to enjoin the voting of
a security so acquired, to void a vote of the security already
cast at a meeting of shareholders, and for such other relief as
the nature of the case and the interest of the health carrier's
subscribers or the public may require.
(3) If a person has acquired or is proposing to acquire
voting securities in violation of this chapter or a rule or order
of the commissioner under this chapter, the superior court for
Thurston county or the court for the county in which the
health carrier has its principal place of business may, on such
notice as the court deems appropriate, upon the application of
the health carrier or the commissioner seize or sequester voting securities of the health carrier owned directly or indirectly by the person, and issue such order with respect to the
securities as may be appropriate to carry out this chapter.
(4) Notwithstanding any other provisions of law, for the
purposes of this chapter, the situs of the ownership of the
securities of domestic health carriers is in this state.
(5) Subsections (2) and (3) of this section do not apply to
acquisitions under RCW 48.31C.020. [2001 c 179 § 8.]
48.31C.090 Violations of chapter—Penalties—Civil
forfeitures—Orders—Referral to prosecuting attorney—
Imprisonment. (1) The commissioner may require, after
notice and hearing, a health carrier failing, without just cause,
to file a registration statement as required in this chapter, to
pay a penalty of not more than ten thousand dollars per day.
The maximum penalty under this section is one million dollars. The commissioner may reduce the penalty if the health
carrier demonstrates to the commissioner that the imposition
of the penalty would constitute a financial hardship to the
health carrier. The commissioner shall transfer a fine collected under this section to the state treasurer for deposit into
the general fund.
(2) Every director or officer of a health carrier holding
company system who knowingly violates this chapter, or participates in, or assents to, or who knowingly permits an
officer or agent of the health carrier to engage in transactions
or make investments that have not been properly reported or
submitted under RCW 48.31C.040(1), 48.31C.050(2), or
48.31C.060, or that violate this chapter, shall pay, in their
individual capacity, a civil forfeiture of not more than ten
thousand dollars per violation, after notice and hearing. In
determining the amount of the civil forfeiture, the commissioner shall take into account the appropriateness of the forfeiture with respect to the gravity of the violation, the history
of previous violations, and such other matters as justice may
require.
(3) Whenever it appears to the commissioner that a
health carrier subject to this chapter, or a director, officer,
employee, or agent of the health carrier, has engaged in a
transaction or entered into a contract that is subject to RCW
48.31C.090
[Title 48 RCW—page 212]
48.31C.050 and 48.31C.060 and that would not have been
approved had approval been requested, the commissioner
may order the health carrier to cease and desist immediately
any further activity under that transaction or contract. After
notice and hearing the commissioner may also order the
health carrier to void any such contracts and restore the status
quo if that action is in the best interest of the subscribers or
the public.
(4) Whenever it appears to the commissioner that a
health carrier or a director, officer, employee, or agent of the
health carrier has committed a willful violation of this chapter, the commissioner may refer the matter to the prosecuting
attorney of Thurston county or the county in which the principal office of the health carrier is located. A health carrier
that willfully violates this chapter may be fined not more than
one million dollars. Any individual who willfully violates
this chapter may be fined in his or her individual capacity not
more than ten thousand dollars, or be imprisoned for not
more than three years, or both.
(5) An officer, director, or employee of a health carrier
holding company system who willfully and knowingly subscribes to or makes or causes to be made a false statement,
false report, or false filing with the intent to deceive the commissioner in the performance of his or her duties under this
chapter, upon conviction thereof, shall be imprisoned for not
more than three years or fined not more than ten thousand
dollars or both. The officer, director, or employee upon
whom the fine is imposed shall pay the fine in his or her individual capacity.
(6) This section does not apply to acquisitions under
RCW 48.31C.020. [2001 c 179 § 9.]
48.31C.100
48.31C.100 Violations of chapter—Impairment of
financial condition. Whenever it appears to the commissioner that a person has committed a violation of this chapter
that so impairs the financial condition of a domestic health
carrier as to threaten insolvency or make the further transaction of business by it hazardous to its subscribers or the public, the commissioner may proceed as provided in RCW
48.31.030 and 48.31.040 to take possession of the property of
the domestic health carrier and to conduct the business of the
health carrier. [2001 c 179 § 10.]
48.31C.110
48.31C.110 Order for liquidation or rehabilitation—
Recovery of distributions or payments—Liability—Maximum amount recoverable. (1) If an order for liquidation or
rehabilitation of a domestic health carrier has been entered,
the receiver appointed under the order may recover on behalf
of the health carrier:
(a) From a parent corporation or a holding company, a
person, or an affiliate, who otherwise controlled the health
carrier, the amount of distributions, other than distributions
of shares of the same class of stock, paid by the health carrier
on its capital stock; or
(b) A payment in the form of a bonus, termination settlement, or extraordinary lump sum salary adjustment, made by
the health carrier or its subsidiary to a director, officer, or
employee;
Where the distribution or payment under (a) or (b) of this
subsection is made at anytime during the one year before the
(2004 Ed.)
Washington Insurance Guaranty Association Act
petition for liquidation, conservation, or rehabilitation, as the
case may be, subject to the limitations of subsections (2)
through (4) of this section.
(2) No such distribution is recoverable if it is shown that
when paid, the distribution was lawful and reasonable, and
that the health carrier did not know and could not reasonably
have known that the distribution might adversely affect the
ability of the health carrier to fulfill its contractual obligations.
(3) A person who was a parent corporation, a holding
company, or a person, who otherwise controlled the health
carrier, or an affiliate when the distributions were paid, is liable up to the amount of distributions or payments under subsection (1) of this section the person received. A person who
controlled the health carrier at the time the distributions were
declared is liable up to the amount of distributions he or she
would have received if they had been paid immediately. If
two or more persons are liable with respect to the same distributions, they are jointly and severally liable.
(4) The maximum amount recoverable under this section
is the amount needed in excess of all other available assets of
the impaired or insolvent health carrier to pay the contractual
obligations of the impaired or insolvent health carrier.
(5) To the extent that a person liable under subsection (3)
of this section is insolvent or otherwise fails to pay claims
due from it under those provisions, its parent corporation,
holding company, or person, who otherwise controlled it at
the time the distribution was paid, is jointly and severally liable for a resulting deficiency in the amount recovered from
the parent corporation, holding company, or person, who otherwise controlled it. [2001 c 179 § 11.]
48.31C.120
48.31C.120 Violations of chapter—Contrary to
interests of subscribers or the public. Whenever it appears
to the commissioner that a person has committed a violation
of this chapter that makes the continued operation of a health
carrier contrary to the interests of subscribers or the public,
the commissioner may, after giving notice and an opportunity
to be heard, suspend, revoke, or refuse to renew the health
carrier's registration to do business in this state for such
period as he or she finds is required for the protection of subscribers or the public. Such a suspension, revocation, or
refusal to renew the health carrier's registration must be
accompanied by specific findings of fact and conclusions of
law. [2001 c 179 § 12.]
48.31C.130
48.31C.130 Confidential proprietary and trade
secret information—Exempt from public disclosure—
Exceptions. Confidential proprietary and trade secret information pr ovided to the com missioner un der RCW
48.31C.020 through 48.31C.050 and 48.31C.070 are exempt
from public inspection and copying and shall not be subject
to subpoena directed to the commissioner or any person who
received the confidential proprietary financial and trade
secret information while acting under the authority of the
commissioner. This information shall not be made public by
the commissioner, the national association of insurance commissioners, or any other person, except to insurance departments of other states, without the prior written consent of the
health carrier to which it pertains unless the commissioner,
(2004 Ed.)
Chapter 48.32
after giving the health carrier that would be affected by the
disclosure notice and hearing under chapter 48.04 RCW,
determines that the interest of policyholders, subscribers,
members, shareholders, or the public will be served by the
publication, in which event the commissioner may publish
information related to the transactions or filings in the manner and time frame he or she reasonably deems appropriate
and sensitive to the interest in preserving confidential proprietary and trade secret information. The commissioner is
authorized to use such documents, materials, or information
in the furtherance of any regulatory or legal action brought as
part of the commissioner's official duties. The confidentiality
created by chapter 179, Laws of 2001 shall apply only to the
commissioner, any person acting under the authority of the
commissioner, the national association of insurance commissioners and its affiliates and subsidiaries, and the insurance
departments of other states. [2001 c 179 § 13.]
48.31C.140
48.31C.140 Person aggrieved by actions of commissioner. A person aggrieved by an act, determination, rule,
order, or any other action of or failure to act by the commissioner under this chapter may proceed in accordance with
chapters 34.05 and 48.04 RCW. [2001 c 179 § 15.]
48.31C.150
48.31C.150 Rule making. The commissioner may
adopt rules to implement and administer this chapter. [2001
c 179 § 16.]
48.31C.160
48.31C.160 Dual holding company system membership. If an insurance company holding a certificate of
authority from the commissioner under chapter 48.05 RCW
is a member of both a health carrier holding company system
under this chapter and an insurance holding company system
under chapter 48.31B RCW, then chapter 48.31B RCW
applies to the authorized insurance company. [2001 c 179 §
17.]
48.31C.900
48.31C.900 Severability—2001 c 179. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[2001 c 179 § 18.]
48.31C.901
48.31C.901 Effective date—2001 c 179. This act is
necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its
existing public institutions, and takes effect immediately
[May 7, 2001]. [2001 c 179 § 19.]
Chapter 48.32 RCW
WASHINGTON INSURANCE GUARANTY
ASSOCIATION ACT
Chapter 48.32
Sections
48.32.010
48.32.020
48.32.030
48.32.040
48.32.050
48.32.060
48.32.070
48.32.080
Purpose.
Scope.
Definitions.
Creation of the association.
Board of directors.
Powers and duties of the association.
Plan of operation.
Duties and powers of the commissioner.
[Title 48 RCW—page 213]
48.32.010
48.32.090
48.32.100
48.32.110
48.32.120
48.32.130
48.32.145
48.32.150
48.32.160
48.32.170
48.32.900
48.32.910
48.32.920
48.32.930
Title 48 RCW: Insurance
Effect of paid claims.
Nonduplication of recovery.
Prevention of insolvencies.
Examination of the association.
Tax exemption.
Credit against premium tax for assessments paid pursuant to
RCW 48.32.060(1)(c).
Immunity.
Stay of proceedings—Setting aside judgment.
Termination, distribution of fund.
Short title.
Construction—1971 ex.s. c 265.
Section headings not part of law.
Severability—1971 ex.s. c 265.
48.32.010
48.32.010 Purpose. The purpose of this chapter is to
provide a mechanism for the payment of covered claims
under certain insurance policies to avoid excessive delay in
payment and to avoid financial loss to claimants or policyholders because of the insolvency of an insurer, to assist in
the detection and prevention of insurer insolvencies, and to
provide an association to assess the cost of such protection
among insurers. [1971 ex.s. c 265 § 1.]
48.32.020
48.32.020 Scope. This chapter shall apply to all kinds
of direct insurance, except life, title, surety, disability, credit,
mortgage guaranty, workers' compensation and ocean marine
insurance. [1987 c 185 § 29; 1975-'76 2nd ex.s. c 109 § 2;
1971 ex.s. c 265 § 2.]
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
48.32.030
48.32.030 Definitions. As used in this chapter:
(1) "Account" means one of the two accounts created in
RCW 48.32.040 as now or hereafter amended.
(2) "Association" means the Washington Insurance
Guaranty Association created in RCW 48.32.040.
(3) "Commissioner" means the insurance commissioner
of this state.
(4) "Covered claim" means an unpaid claim, including
one for unearned premiums, which arises out of and is within
the coverage of an insurance policy to which this chapter
applies issued by an insurer, if such insurer becomes an insolvent insurer after the first day of April, 1971 and (a) the
claimant or insured is a resident of this state at the time of the
insured event; or (b) the property from which the claim arises
is permanently located in this state. "Covered claim" shall not
include any amount due any reinsurer, insurer, insurance
pool, or underwriting association, as subrogation recoveries
or otherwise: PROVIDED, That a claim for any such amount
asserted against a person insured under a policy issued by an
insurer which has become an insolvent insurer, which, if it
were not a claim by or for the benefit of a reinsurer, insurer,
insurance pool, or underwriting association, would be a "covered claim" may be filed directly with the receiver of the
insolvent insurer, but in no event may any such claim be
asserted in any legal action against the insured of such insolvent insurer. In addition, "covered claim" shall not include
any claim filed with the association subsequent to the final
date set by the court for the filing of claims against the liquidator or receiver of an insolvent insurer.
(5) "Insolvent insurer" means an insurer (a) authorized to
transact insurance in this state either at the time the policy
was issued or when the insured event occurred and (b) deter[Title 48 RCW—page 214]
mined to be insolvent and ordered liquidated by a court of
competent jurisdiction, and which adjudication was subsequent to the first day of April, 1971.
(6) "Member insurer" means any person who (a) writes
any kind of insurance to which this chapter applies under
RCW 48.32.020, including the exchange of reciprocal or
interinsurance contracts, and (b) holds a certificate of authority to transact insurance in this state.
(7) "Net direct written premiums" means direct gross
premiums written in this state on insurance policies to which
this chapter applies, less return premiums thereon and dividends paid or credited to policyholders on such direct business. "Net direct written premiums" does not include premiums on contracts between insurers or reinsurers.
(8) "Person" means any individual, corporation, partnership, association, or voluntary organization. [1975-'76 2nd
ex.s. c 109 § 3; 1971 ex.s. c 265 § 3.]
48.32.040
48.32.040 Creation of the association. There is hereby
created a nonprofit unincorporated legal entity to be known
as the Washington Insurance Guaranty Association. All
insurers defined as member insurers in RCW 48.32.030(6) as
now or hereafter amended shall be and remain members of
the association as a condition of their authority to transact
insurance in this state. The association shall perform its functions under a plan of operation established and approved
under RCW 48.32.070 and shall exercise its powers through
a board of directors established under RCW 48.32.050 as
now or hereafter amended. For purposes of administration
and assessment, the association shall be divided into two separate accounts: (1) The automobile insurance account; and
(2) the account for all other insurance to which this chapter
applies. [1975-'76 2nd ex.s. c 109 § 4; 1971 ex.s. c 265 § 4.]
48.32.050
48.32.050 Board of directors. (1) The board of directors of the association shall consist of not less than five nor
more than nine persons serving terms as established in the
plan of operation. The members of the board shall be selected
by member insurers subject to the approval of the commissioner. Vacancies on the board shall be filled for the remaining period of the term by a majority vote of the remaining
board members, subject to the approval of the commissioner.
(2) In approving selections to the board, the commissioner shall consider among other things whether all member
insurers are fairly represented.
(3) Members of the board may be reimbursed from the
assets of the association for expenses incurred by them as
members of the board of directors. [1975-'76 2nd ex.s. c 109
§ 5; 1971 ex.s. c 265 § 5.]
48.32.060
48.32.060 Powers and duties of the association. (1)
The association shall:
(a) Be obligated to the extent of the covered claims existing prior to the order of liquidation and arising within thirty
days after the order of liquidation, or before the policy expiration date if less than thirty days after the order of liquidation, or before the insured replaces the policy or on request
effects cancellation, if he does so within thirty days of the
order of liquidation, but such obligation shall include only
that amount of each covered claim which is in excess of one
(2004 Ed.)
Washington Insurance Guaranty Association Act
hundred dollars and is less than three hundred thousand dollars. In no event shall the association be obligated to a policyholder or claimant in an amount in excess of the face amount
of the policy from which the claim arises.
(b) Be deemed the insurer to the extent of its obligation
on the covered claims and to such extent shall have all rights,
duties, and obligations of the insolvent insurer as if the
insurer had not become insolvent.
(c) Allocate claims paid and expenses incurred among
the two accounts enumerated in RCW 48.32.040 as now or
hereafter amended separately, and assess member insurers
separately for each account amounts necessary to pay the
obligations of the association under subsection (1)(a) above
subsequent to an insolvency, the expenses of handling covered claims subsequent to an insolvency, the cost of examinations under RCW 48.32.110, and other expenses authorized
by this chapter. The assessments of each member insurer
shall be in the proportion that the net direct written premiums
of the member insurer for the calendar year preceding the
assessment on the kinds of insurance in the account bears to
the net direct written premiums of all member insurers for the
calendar year preceding the assessment on the kinds of insurance in the account. Each member insurer shall be notified of
the assessment not later than thirty days before it is due. No
member insurer may be assessed in any year on any account
an amount greater than two percent of that member insurer's
net direct written premiums for the calendar year preceding
the assessment on the kinds of insurance in the account. If the
maximum assessment, together with the other assets of the
association in any account, does not provide in any one year
in any account an amount sufficient to make all necessary
payments from that account, the funds available may be prorated and the unpaid portion shall be paid as soon thereafter
as funds become available. The association shall pay claims
in any order which it may deem reasonable, including the
payment of claims in the order such claims are received from
claimants or in groups or categories of claims, or otherwise.
The association may exempt or defer, in whole or in part, the
assessment of any member insurer, if the assessment would
cause the member insurer's financial statement to reflect
amounts of capital or surplus less than the minimum amounts
required for a certificate of authority by any jurisdiction in
which the member insurer is authorized to transact insurance.
Each member insurer serving as a servicing facility may set
off against any assessment, authorized payments made on
covered claims and expenses incurred in the payment of such
claims by such member insurer if they are chargeable to the
account for which the assessment is made.
(d) Investigate claims brought against the association
and adjust, compromise, settle, and pay covered claims to the
extent of the association's obligation and deny all other
claims.
(e) Notify such persons as the commissioner directs
under RCW 48.32.080(2)(a).
(f) Handle claims through its employees or through one
or more insurers or other persons designated as servicing
facilities. Designation of a servicing facility is subject to the
approval of the commissioner, but such designation may be
declined by a member insurer.
(g) Reimburse each servicing facility for obligations of
the association paid by the facility and for expenses incurred
(2004 Ed.)
48.32.070
by the facility while handling claims on behalf of the association and shall pay the other expenses of the association
authorized by this chapter.
(2) The association may:
(a) Appear in, defend, and appeal any action on a claim
brought against the association.
(b) Employ or retain such persons as are necessary to
handle claims and perform other duties of the association.
(c) Borrow funds necessary to effect the purposes of this
chapter in accord with the plan of operation.
(d) Sue or be sued.
(e) Negotiate and become a party to such contracts as are
necessary to carry out the purpose of this chapter.
(f) Perform such other acts as are necessary or proper to
effectuate the purpose of this chapter.
(g) Refund to the member insurers in proportion to the
contribution of each member insurer to that account that
amount by which the assets of the account exceed the liabilities, if, at the end of any calendar year, the board of directors
finds that the assets of the association in any account exceed
the liabilities of that account as estimated by the board of
directors for the coming year. [1975-'76 2nd ex.s. c 109 § 6;
1971 ex.s. c 265 § 6.]
48.32.070
48.32.070 Plan of operation. (1)(a) The association
shall submit to the commissioner a plan of operation and any
amendments thereto necessary or suitable to assure the fair,
reasonable, and equitable administration of the association.
The plan of operation and any amendments thereto shall
become effective upon approval in writing by the commissioner.
(b) If the association fails to submit a suitable plan of
operation within ninety days following May 21, 1971 or if at
any time thereafter the association fails to submit suitable
amendments to the plan, the commissioner shall, after notice
and hearing, adopt and promulgate such reasonable rules as
are necessary or advisable to effectuate the provisions of this
chapter. Such rules shall continue in force until modified by
the commissioner or superseded by a plan submitted by the
association and approved by the commissioner.
(2) All member insurers shall comply with the plan of
operation.
(3) The plan of operation shall:
(a) Establish the procedures whereby all the powers and
duties of the association under RCW 48.32.060 will be performed.
(b) Establish procedures for handling assets of the association.
(c) Establish the amount and method of reimbursing
members of the board of directors under RCW 48.32.050.
(d) Establish procedures by which claims may be filed
with the association and establish acceptable forms of proof
of covered claims. Notice of claims to the receiver or liquidator of the insolvent insurer shall be deemed notice to the association or its agent and a list of such claims shall be periodically submitted to the association or similar organization in
another state by the receiver or liquidator.
(e) Establish regular places and times for meetings of the
board of directors.
[Title 48 RCW—page 215]
48.32.080
Title 48 RCW: Insurance
(f) Establish procedures for records to be kept of all
financial transactions of the association, its agents, and the
board of directors.
(g) Provide that any member insurer aggrieved by any
final action or decision of the association may appeal to the
commissioner within thirty days after the action or decision.
(h) Establish the procedures whereby selections for the
board of directors will be submitted to the commissioner.
(i) Contain additional provisions necessary or proper for
the execution of the powers and duties of the association.
(4) The plan of operation may provide that any or all
powers and duties of the association, except those under
RCW 48.32.060 subsections (1)(c) and (2)(c), are delegated
to a corporation, association, or other organization which performs or will perform functions similar to those of this association, or its equivalent, in two or more states. Such a corporation, association or organization shall be reimbursed as a
servicing facility would be reimbursed and shall be paid for
its performance of any other functions of the association. A
delegation under this subsection shall take effect only with
the approval of both the board of directors and the commissioner, and may be made only to a corporation, association,
or organization which extends protection not substantially
less favorable and effective than that provided by this chapter. [1971 ex.s. c 265 § 7.]
48.32.080 Duties and powers of the commissioner.
(1) The commissioner shall:
(a) Notify the association promptly whenever he or any
of his examiners has, or comes into, possession of any data or
information relative to any insurer under his jurisdiction for
any purpose indicating that such insurer is in or is approaching a condition of impaired assets, imminent insolvency, or
insolvency.
(b) Furnish to the association copies of all preliminary
and final audits, investigations, memorandums, opinions, and
reports relative to any insurer under his jurisdiction for any
purpose, promptly upon the preparation of any thereof.
(c) Notify the association of the existence of an insolvent
insurer not later than three days after he receives notice of the
determination of the insolvency. The association shall be
entitled to a copy of any complaint seeking an order of liquidation with a finding of insolvency against a member insurer
at the same time such complaint is filed with a court of competent jurisdiction.
(d) Upon request of the board of directors, provide the
association with a statement of the net direct written premiums of each member insurer.
(2) The commissioner may:
(a) Require that the association notify the insureds of the
insolvent insurer and any other interested parties of the determination of insolvency and of their rights under this chapter.
Such notification shall be by mail at their last known address,
where available, but if sufficient information for notification
by mail is not available, notice by publication or in a newspaper of general circulation shall be sufficient.
(b) Suspend or revoke, after notice and hearing, the certificate of authority to transact insurance in this state of any
member insurer which fails to pay an assessment when due or
fails to comply with the plan of operation. As an alternative,
the commissioner may levy a fine on any member insurer
which fails to pay an assessment when due. Such fine shall
not exceed five percent of the unpaid assessment per month,
except that no fine shall be less than one hundred dollars per
month.
(c) Revoke the designation of any servicing facility if he
finds claims are being handled unsatisfactorily.
(3) Whenever the commissioner or any of his examiners
comes into possession of or obtains any data or information
indicating that any insurer under his jurisdiction for any purpose is in or is approaching a condition of impaired assets,
imminent insolvency, or insolvency, he shall within fifteen
days of having such data or information commence investigation and/or take formal action relative to any such insurer,
and in addition within said time shall notify the association of
such condition. Upon failure of the commissioner so to act,
the association is hereby authorized and directed to act and
commence appropriate investigation or proceedings or may
at its option refer the matter to the attorney general for appropriate action relative to which the attorney general shall keep
the association advised throughout any such action or proceedings.
(4) Any final action or order of the commissioner under
this chapter shall be subject to judicial review in a court of
competent jurisdiction. [1975-'76 2nd ex.s. c 109 § 7; 1971
ex.s. c 265 § 8.]
48.32.080
[Title 48 RCW—page 216]
48.32.090
48.32.090 Effect of paid claims. (1) Any person recovering under this chapter shall be deemed to have assigned his
rights under the policy to the association to the extent of his
recovery from the association. Every insured or claimant
seeking the protection of this chapter shall cooperate with the
association to the same extent as such person would have
been required to cooperate with the insolvent insurer. The
association shall have no cause of action against the insured
of the insolvent insurer for any sums it has paid out.
(2) The receiver, liquidator, or statutory successor of an
insolvent insurer shall be bound by settlements of covered
claims by the association or a similar organization in another
state. The court having jurisdiction shall grant such claims
priority equal to that which the claimant would have been
entitled in the absence of this chapter against the assets of the
insolvent insurer. The expenses of the association or similar
organization in handling claims shall be accorded the same
priority as the liquidator's expenses.
(3) The association shall periodically file with the
receiver or liquidator of the insolvent insurer statements of
the covered claims paid by the association and estimates of
anticipated claims on the association which shall preserve the
right of the association against the assets of the insolvent
insurer. [1971 ex.s. c 265 § 9.]
48.32.100
48.32.100 Nonduplication of recovery. (1) Any person having a claim against his insurer under any provision in
his insurance policy which is also a covered claim shall be
required to exhaust first his right under such policy. Any
amount payable on a covered claim under this chapter shall
be reduced by the amount of such recovery under the claimant's insurance policy.
(2) Any person having a claim which may be recovered
under more than one insurance guaranty association or its
(2004 Ed.)
Washington Insurance Guaranty Association Act
equivalent shall seek recovery first from the association of
the place of residence of the insured except that if it is a first
party claim for damage to property with a permanent location, from the association of the location of the property, and
if it is a workers' compensation claim, from the association of
the residence of the claimant. Any recovery under this chapter shall be reduced by the amount of the recovery from any
other insurance guaranty association or its equivalent. [1987
c 185 § 30; 1971 ex.s. c 265 § 10.]
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
48.32.110 Prevention of insolvencies. To aid in the
detection and prevention of insurer insolvencies:
(1) It shall be the duty of the board of directors, upon
majority vote, to notify the commissioner of any information
indicating any member insurer may be insolvent or in a financial condition hazardous to the policyholders or the public.
(2) The board of directors may, upon majority vote,
request that the commissioner order an examination of any
member insurer which the board in good faith believes may
be in a financial condition hazardous to the policyholders or
the public. Within thirty days of the receipt of such request,
the commissioner shall begin such examination. The examination may be conducted as a National Association of Insurance Commissioners examination or may be conducted by
such persons as the commissioner designates. The cost of
such examination shall be paid by the association and the
examination report shall be treated as are other examination
reports. In no event shall such examination report be released
to the board of directors prior to its release to the public, but
this shall not preclude the commissioner from complying
with subsection (3) of this section. The commissioner shall
notify the board of directors when the examination is completed. The request for an examination shall be kept on file by
the commissioner but it shall not be open to public inspection
prior to the release of the examination report to the public.
(3) It shall be the duty of the commissioner to report to
the board of directors when he has reasonable cause to
believe that any member insurer examined or being examined
at the request of the board of directors may be insolvent or in
a financial condition hazardous to the policyholders or the
public.
(4) The board of directors may, upon majority vote,
make reports and recommendations to the commissioner
upon any matter germane to the solvency, liquidation, rehabilitation or conservation of any member insurer. Such
reports and recommendations shall not be considered public
documents.
(5) The board of directors may, upon majority vote,
make recommendations to the commissioner for the detection
and prevention of insurer insolvencies.
(6) The board of directors shall, at the conclusion of any
insurer insolvency in which the association was obligated to
pay covered claims, prepare a report on the history and
causes of such insolvency, based on the information available
to the association, and submit such report to the commissioner. [1971 ex.s. c 265 § 11.]
48.32.110
48.32.120 Examination of the association. The association shall be subject to examination and regulation by the
48.32.120
(2004 Ed.)
48.32.170
commissioner. The board of directors shall submit, not later
than March 30th of each year, a financial report for the preceding calendar year in a form approved by the commissioner. [1971 ex.s. c 265 § 12.]
48.32.130
48.32.130 Tax exemption. The association shall be
exempt from payment of all fees and all taxes levied by this
state or any of its subdivisions except taxes levied on real or
personal property. [1971 ex.s. c 265 § 13.]
48.32.145
48.32.145 Credit against premium tax for assessments paid pursuant to RCW 48.32.060(1)(c). Every
member insurer that prior to April 1, 1993, or after July 27,
1997, shall have paid one or more assessments levied pursuant to RCW 48.32.060(1)(c) shall be entitled to take a credit
against any premium tax falling due under RCW 48.14.020.
The amount of the credit shall be one-fifth of the aggregate
amount of such aggregate assessments paid during such calendar year for each of the five consecutive calendar years
beginning with the calendar year following the calendar year
in which such assessments are paid. Whenever the allowable
credit is or becomes less than one thousand dollars, the entire
amount of the credit may be offset against the premium tax at
the next time the premium tax is paid. [1997 c 300 § 1; 1993
sp.s. c 25 § 901; 1977 ex.s. c 183 § 1; 1975-'76 2nd ex.s. c 109
§ 11.]
Severability—Effective dates—Part headings, captions not law—
1993 sp.s. c 25: See notes following RCW 82.04.230.
48.32.150
48.32.150 Immunity. There shall be no liability on the
part of and no cause of action of any nature shall arise against
any member insurer, the association or its agents or employees, the board of directors, or the commissioner or his representatives for any action taken by them in the performance of
their powers and duties under this chapter. [1971 ex.s. c 265
§ 15.]
48.32.160
48.32.160 Stay of proceedings—Setting aside judgment. All proceedings in which the insolvent insurer is a
party or is obligated to defend a party in any court in this state
shall be stayed for one hundred eighty days and such additional time thereafter as may be fixed by the court from the
date the insolvency is determined to permit proper defense by
the association of all pending causes of action. Any judgment
under any decision, verdict, or finding based on default of the
insolvent insurer or on its failure to defend an insured which
is unsatisfied at the date the insolvency is determined shall be
set aside on the motion of the association and the association
shall be permitted to defend such claim on the merits. [1975'76 2nd ex.s. c 109 § 8; 1971 ex.s. c 265 § 16.]
48.32.170
48.32.170 Termination, distribution of fund. (1) The
commissioner shall by order terminate the operation of the
Washington insurers insolvency pool as to any kind of insurance afforded by property or casualty insurance policies with
respect to which he has found, after hearing, that there is in
effect a statutory or voluntary plan which:
(a) Is a permanent plan which is adequately funded or for
which adequate funding is provided; and
[Title 48 RCW—page 217]
48.32.900
Title 48 RCW: Insurance
(b) Extends, or will extend to state policyholders and residents protection and benefits with respect to insolvent insurers not substantially less favorable and effective to such policyholders and residents than the protection and benefits provided with respect to such kind of insurance under this
chapter.
(2) The commissioner shall by the same such order
authorize discontinuance of future payments by insurers to
the Washington insurers insolvency pool with respect to the
same kinds of insurance: PROVIDED, That assessments and
payments shall continue, as necessary, to liquidate covered
claims of insurers adjudged insolvent prior to said order and
the related expenses not covered by such other plan.
(3) In the event the operation of any account of the
Washington insurers insolvency pool shall be so terminated
as to all kinds of insurance otherwise within its scope, the
pool as soon as possible thereafter shall distribute the balance
of the moneys and assets remaining in said account (after discharge of the functions of the pool with respect to prior
insurer insolvencies not covered by such other plan, together
with related expenses) to the insurers which are then writing
in this state policies of the kinds of insurance covered by such
account, and which had made payments into such account,
pro rata upon the basis of the aggregate of such payments
made by the respective insurers to such account during the
period of five years next preceding the date of such order.
Upon completion of such distribution with respect to all of
the accounts specified in RCW 48.32.060, this chapter shall
be deemed to have expired. [1971 ex.s. c 265 § 17.]
48.32A.085
48.32A.095
48.32A.105
48.32A.115
48.32A.125
48.32A.135
48.32A.145
48.32A.155
48.32A.165
48.32A.175
48.32A.185
Assessments.
Plan of operation.
Duties and powers of the commissioner.
Prevention of insolvencies.
Credits for assessments paid—Tax offsets.
Miscellaneous provisions.
Examination of the association—Annual report.
Tax exemptions.
Immunity.
Stay of proceedings—Reopening default judgments.
Prohibited advertisement of insurance guaranty association act
in insurance sales—Notice to policy owners.
48.32A.901 Prospective application—Savings—2001 c 50.
48.32A.902 Captions not law—2001 c 50.
Group stop loss insurance exemption: RCW 48.21.015.
48.32A.005
48.32A.005 Short title. This chapter may be known
and cited as the Washington life and disability insurance
guaranty association act. [2001 c 50 § 1.]
48.32A.015
48.32A.015 Purpose. (1) The purpose of this chapter is
to protect, subject to certain limitations, the persons specified
in RCW 48.32A.025(1) against failure in the performance of
contractual obligations, under life and disability insurance
p o l i ci es a n d a n n u i t y c o n t r a c t s s p e c if ie d in R C W
48.32A.025(2), because of the impairment or insolvency of
the member insurer that issued the policies or contracts.
(2) To provide this protection, an association of insurers
is created to pay benefits and to continue coverages as limited
by this chapter, and members of the association are subject to
assessment to provide funds to carry out the purpose of this
chapter. [2001 c 50 § 2.]
48.32.900
48.32.900 Short title. This chapter shall be known and
may be cited as the Washington Insurance Guaranty Association Act. [1971 ex.s. c 265 § 18.]
48.32.910
48.32.910 Construction—1971 ex.s. c 265. This chapter shall be liberally construed to effect the purpose under
RCW 48.32.010 which shall constitute an aid and guide to
interpretation. [1971 ex.s. c 265 § 19.]
48.32.920
48.32.920 Section headings not part of law. Section
headings as used in this chapter do not constitute any part of
the law. [1971 ex.s. c 265 § 22.]
48.32.930
48.32.930 Severability—1971 ex.s. c 265. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provisions to other persons or circumstances is not
affected. [1971 ex.s. c 265 § 23.]
Chapter 48.32A RCW
WASHINGTON LIFE AND DISABILITY INSURANCE
GUARANTY ASSOCIATION ACT
Chapter 48.32A
Sections
48.32A.005
48.32A.015
48.32A.025
48.32A.035
48.32A.045
48.32A.055
48.32A.065
48.32A.075
Short title.
Purpose.
Coverage and limitations.
Construction.
Definitions.
Creation of the association.
Board of directors.
Powers and duties of the association.
[Title 48 RCW—page 218]
48.32A.025
48.32A.025 Coverage and limitations. (1) This chapter provides coverage for the policies and contracts specified
in subsection (2) of this section as follows:
(a) To persons who, regardless of where they reside,
except for nonresident certificate holders under group policies or contracts, are the beneficiaries, assignees, or payees of
the persons covered under (b) of this subsection;
(b) To persons who are owners of or certificate holders
under the policies or contracts, other than unallocated annuity
contracts and structured settlement annuities, and in each
case who:
(i) Are residents; or
(ii) Are not residents, but only under all of the following
conditions:
(A) The insurer that issued the policies or contracts is
domiciled in this state;
(B) The states in which the persons reside have associations similar to the association created by this chapter; and
(C) The persons are not eligible for coverage by an association in any other state due to the fact that the insurer was
not licensed in the state at the time specified in the state's
guaranty association law;
(c) For unallocated annuity contracts specified in subsection (2) of this section, (a) and (b) of this subsection do not
apply, and this chapter, except as provided in (e) and (f) of
this subsection, does provide coverage to:
(i) Persons who are the owners of the unallocated annuity contracts if the contracts are issued to or in connection
with a specific benefit plan whose plan sponsor has its principal place of business in this state; and
(2004 Ed.)
Washington Life and Disability Insurance Guaranty Association Act
(ii) Persons who are owners of unallocated annuity contracts issued to or in connection with government lotteries if
the owners are residents;
(d) For structured settlement annuities specified in subsection (2) of this section, (a) and (b) of this subsection do not
apply, and this chapter, except as provided in (e) and (f) of
this subsection, does provide coverage to a person who is a
payee under a structured settlement annuity, or beneficiary of
a payee if the payee is deceased, if the payee:
(i) Is a resident, regardless of where the contract owner
resides; or
(ii) Is not a resident, but only under both of the following
conditions:
(A)(I) The contract owner of the structured settlement
annuity is a resident; or
(II) The contract owner of the structured settlement
annuity is not a resident, but the insurer that issued the structured settlement annuity is domiciled in this state; and the
state in which the contract owner resides has an association
similar to the association created by this chapter; and
(B) Neither the payee, nor beneficiary, nor the contract
owner is eligible for coverage by the association of the state
in which the payee or contract owner resides;
(e) This chapter does not provide coverage to:
(i) A person who is a payee, or beneficiary, of a contract
owner resident of this state, if the payee, or beneficiary, is
afforded any coverage by the association of another state; or
(ii) A person covered under (c) of this subsection, if any
coverage is provided by the association of another state to the
person; and
(f) This chapter is intended to provide coverage to a person who is a resident of this state and, in special circumstances, to a nonresident. In order to avoid duplicate coverage, if a person who would otherwise receive coverage under
this chapter is provided coverage under the laws of any other
state, the person shall not be provided coverage under this
chapter. In determining the application of this subsection
(1)(f) in situations where a person could be covered by the
association of more than one state, whether as an owner,
payee, beneficiary, or assignee, this chapter shall be construed in conjunction with other state laws to result in coverage by only one association.
(2)(a) This chapter provides coverage to the persons
specified in subsection (1) of this section for direct, nongroup
life, disability, or annuity policies or contracts and supplemental contracts to any of these, for certificates under direct
group policies and contracts, and for unallocated annuity contracts issued by member insurers, except as limited by this
chapter. Annuity contracts and certificates under group annuity contracts include but are not limited to guaranteed investment contracts, deposit administration contracts, unallocated
funding agreements, allocated funding agreements, structured settlement annuities, annuities issued to or in connection with government lotteries, and any immediate or
deferred annuity contracts. However, any annuity contracts
that are unallocated annuity contracts are subject to the specific provisions in this chapter for unallocated annuity contracts.
(b) This chapter does not provide coverage for:
(2004 Ed.)
48.32A.025
(i) A portion of a policy or contract not guaranteed by the
insurer, or under which the risk is borne by the policy or contract owner;
(ii) A policy or contract of reinsurance, unless assumption certificates have been issued pursuant to the reinsurance
policy or contract;
(iii) A portion of a policy or contract to the extent that the
rate of interest on which it is based, or the interest rate, crediting rate, or similar factor determined by use of an index or
other external reference stated in the policy or contract
employed in calculating returns or changes in value:
(A) Averaged over the period of four years prior to the
date on which the member insurer becomes an impaired or
insolvent insurer under this chapter, whichever is earlier,
exceeds the rate of interest determined by subtracting two
percentage points from Moody's corporate bond yield average averaged for that same four-year period or for such lesser
period if the policy or contract was issued less than four years
before the member insurer becomes an impaired or insolvent
insurer under this chapter, whichever is earlier; and
(B) On and after the date on which the member insurer
becomes an impaired or insolvent insurer under this chapter,
whichever is earlier, exceeds the rate of interest determined
by subtracting three percentage points from Moody's corporate bond yield average as most recently available;
(iv) A portion of a policy or contract issued to a plan or
program of an employer, association, or other person to provide life, disability, or annuity benefits to its employees,
members, or others, to the extent that the plan or program is
self-funded or uninsured, including but not limited to benefits
payable by an employer, association, or other person under:
(A) A multiple employer welfare arrangement as defined
in 29 U.S.C. Sec. 1144;
(B) A minimum premium group insurance plan;
(C) A stop-loss group insurance plan; or
(D) An administrative services only contract;
(v) A portion of a policy or contract to the extent that it
provides for:
(A) Dividends or experience rating credits;
(B) Voting rights; or
(C) Payment of any fees or allowances to any person,
including the policy or contract owner, in connection with the
service to or administration of the policy or contract;
(vi) A policy or contract issued in this state by a member
insurer at a time when it was not licensed or did not have a
certificate of authority to issue the policy or contract in this
state;
(vii) An unallocated annuity contract issued to or in connection with a benefit plan protected under the federal pension benefit guaranty corporation, regardless of whether the
federal pension benefit guaranty corporation has yet become
liable to make any payments with respect to the benefit plan;
(viii) A portion of an unallocated annuity contract that is
not issued to or in connection with a specific employee,
union, or association of natural persons benefit plan or a government lottery;
(ix) A portion of a policy or contract to the extent that the
assessments required by RCW 48.32A.085 with respect to
the policy or contract are preempted by federal or state law;
(x) An obligation that does not arise under the express
written terms of the policy or contract issued by the insurer to
[Title 48 RCW—page 219]
48.32A.025
Title 48 RCW: Insurance
the contract owner or policy owner, including without limitation:
(A) Claims based on marketing materials;
(B) Claims based on side letters, riders, or other documents that were issued by the insurer without meeting applicable policy form filing or approval requirements;
(C) Misrepresentations of or regarding policy benefits;
(D) Extra-contractual claims; or
(E) A claim for penalties or consequential or incidental
damages;
(xi) A contractual agreement that establishes the member
insurer's obligations to provide a book value accounting guaranty for defined contribution benefit plan participants by reference to a portfolio of assets that is owned by the benefit
plan or its trustee, which in each case is not an affiliate of the
member insurer; or
(xii) A portion of a policy or contract to the extent it provides for interest or other changes in value to be determined
by the use of an index or other external reference stated in the
policy or contract, but which have not been credited to the
policy or contract, or as to which the policy or contract
owner's rights are subject to forfeiture, as of the date the
member insurer becomes an impaired or insolvent insurer
under this chapter, whichever is earlier. If a policy's or contract's interest or changes in value are credited less frequently
than annually, then for purposes of determining the values
that have been credited and are not subject to forfeiture under
this subsection (2)(b)(xii), the interest or change in value
determined by using the procedures defined in the policy or
contract will be credited as if the contractual date of crediting
interest or changing values was the date of impairment or
insolvency, whichever is earlier, and will not be subject to
forfeiture.
(3) The benefits that the association may become obligated to cover shall in no event exceed the lesser of:
(a) The contractual obligations for which the insurer is
liable or would have been liable if it were not an impaired or
insolvent insurer; or
(b)(i) With respect to one life, regardless of the number
of policies or contracts:
(A) Five hundred thousand dollars in life insurance death
benefits, but not more than five hundred thousand dollars in
net cash surrender and net cash withdrawal values for life
insurance;
(B) In disability insurance benefits:
(I) Five hundred thousand dollars for coverages not
defined as disability income insurance or basic hospital, medical, and surgical insurance or major medical insurance
including any net cash surrender and net cash withdrawal values;
(II) Five hundred thousand dollars for disability income
insurance;
(III) Five hundred thousand dollars for basic hospital
medical and surgical insurance or major medical insurance;
or
(C) Five hundred thousand dollars in the present value of
annuity benefits, including net cash surrender and net cash
withdrawal values, except as provided in (ii), (iii), and (v) of
this subsection (3)(b);
(ii) With respect to each individual participating in a
governmental retirement benefit plan established under sec[Title 48 RCW—page 220]
tion 401, 403(b), or 457 of the United States Internal Revenue
Code covered by an unallocated annuity contract or the beneficiaries of each such individual if deceased, in the aggregate, one hundred thousand dollars in present value annuity
benefits, including net cash surrender and net cash withdrawal values;
(iii) With respect to each payee of a structured settlement
annuity, or beneficiary or beneficiaries of the payee if
deceased, five hundred thousand dollars in present value
annuity benefits, in the aggregate, including net cash surrender and net cash withdrawal values, if any;
(iv) However, in no event shall the association be obligated to cover more than: (A) An aggregate of five hundred
thousand dollars in benefits with respect to any one life under
(i), (ii), and (iii) of this subsection (3)(b) except with respect
to benefits for basic hospital, medical, and surgical insurance
and major medical insurance under (i)(B) of this subsection
(3)(b), in which case the aggregate liability of the association
shall not exceed five hundred thousand dollars with respect to
any one individual; or (B) with respect to one owner of multiple nongroup policies of life insurance, whether the policy
owner is an individual, firm, corporation, or other person, and
whether the persons insured are officers, managers, employees, or other persons, more than five million dollars in benefits, regardless of the number of policies and contracts held
by the owner;
(v) With respect to either: (A) One contract owner provided coverage under subsection (1)(d)(ii) of this section; or
(B) one plan sponsor whose plans own directly or in trust one
or more unallocated annuity contracts not included in (ii) of
this subsection (3)(b), five million dollars in benefits, irrespective of the number of contracts with respect to the contract owner or plan sponsor. However, in the case where one
or more unallocated annuity contracts are covered contracts
under this chapter and are owned by a trust or other entity for
the benefit of two or more plan sponsors, coverage shall be
afforded by the association if the largest interest in the trust or
entity owning the contract or contracts is held by a plan sponsor whose principal place of business is in this state and in no
event shall the association be obligated to cover more than
five million dollars in benefits with respect to all these unallocated contracts; or
(vi) The limitations set forth in this subsection are limitations on the benefits for which the association is obligated
before taking into account either its subrogation and assignment rights or the extent to which those benefits could be provided out of the assets of the impaired or insolvent insurer
attributable to covered policies. The costs of the association's
obligations under this chapter may be met by the use of assets
attributable to covered policies or reimbursed to the association pursuant to its subrogation and assignment rights.
(4) In performing its obligations to provide coverage
under RCW 48.32A.075, the association is not required to
guarantee, assume, reinsure, or perform, or cause to be guaranteed, assumed, reinsured, or performed, the contractual
obligations of the insolvent or impaired insurer under a covered policy or contract that do not materially affect the economic values or economic benefits of the covered policy or
contract. [2001 c 50 § 3.]
(2004 Ed.)
Washington Life and Disability Insurance Guaranty Association Act
48.32A.035 Construction. This chapter shall be construed to effect the purpose under RCW 48.32A.015. [2001 c
50 § 4.]
48.32A.035
48.32A.045
48.32A.045 Definitions. The definitions in this section
apply throughout this chapter unless the context clearly
requires otherwise.
(1) "Account" means either of the two accounts created
under RCW 48.32A.055.
(2) "Association" means the Washington life and disability insurance guaranty association created under RCW
48.32A.055.
(3) "Authorized assessment" or the term "authorized"
when used in the context of assessments means a resolution
by the board of directors has been passed whereby an assessment will be called immediately or in the future from member
insurers for a specified amount. An assessment is authorized
when the resolution is passed.
(4) "Benefit plan" means a specific employee, union, or
association of natural persons benefit plan.
(5) "Called assessment" or the term "called" when used
in the context of assessments means that a notice has been
issued by the association to member insurers requiring that an
authorized assessment be paid within the time frame set forth
within the notice. An authorized assessment becomes a called
assessment when notice is mailed by the association to member insurers.
(6) "Commissioner" means the insurance commissioner
of this state.
(7) "Contractual obligation" means an obligation under a
policy or contract or certificate under a group policy or contract, or portion thereof for which coverage is provided under
RCW 48.32A.025.
(8) "Covered policy" means a policy or contract or portion of a policy or contract for which coverage is provided
under RCW 48.32A.025.
(9) "Extra-contractual claims" includes, for example,
claims relating to bad faith in the payment of claims, punitive
or exemplary damages, or attorneys' fees and costs.
(10) "Impaired insurer" means a member insurer which,
after July 22, 2001, is not an insolvent insurer, and is placed
under an order of rehabilitation or conservation by a court of
competent jurisdiction.
(11) "Insolvent insurer" means a member insurer which,
after July 22, 2001, is placed under an order of liquidation by
a court of competent jurisdiction with a finding of insolvency.
(12) "Member insurer" means an insurer licensed, or that
holds a certificate of authority, to transact in this state any
kind of insurance for which coverage is provided under RCW
48.32A.025, and includes an insurer whose license or certificate of authority in this state may have been suspended,
revoked, not renewed, or voluntarily withdrawn, but does not
include:
(a) A health care service contractor, whether profit or
nonprofit;
(b) A health maintenance organization;
(c) A fraternal benefit society;
(d) A mandatory state pooling plan;
(e) A mutual assessment company or other person that
operates on an assessment basis;
(2004 Ed.)
48.32A.045
(f) An insurance exchange;
(g) An organization that has a certificate or license limited to the issuance of charitable gift annuities under RCW
48.38.010; or
(h) An entity similar to (a) through (g) of this subsection.
(13) "Moody's corporate bond yield average" means the
monthly average corporates as published by Moody's investors service, inc., or any successor thereto.
(14) "Owner" of a policy or contract and "policy owner"
and "contract owner" mean the person who is identified as the
legal owner under the terms of the policy or contract or who
is otherwise vested with legal title to the policy or contract
through a valid assignment completed in accordance with the
terms of the policy or contract and properly recorded as the
owner on the books of the insurer. "Owner," "contract
owner," and "policy owner" do not include persons with a
mere beneficial interest in a policy or contract.
(15) "Person" means an individual, corporation, limited
liability company, partnership, association, governmental
body or entity, or voluntary organization.
(16) "Plan sponsor" means:
(a) The employer in the case of a benefit plan established
or maintained by a single employer;
(b) The employee organization in the case of a benefit
plan established or maintained by an employee organization;
or
(c) In the case of a benefit plan established or maintained
by two or more employers or jointly by one or more employers and one or more employee organizations, the association,
committee, joint board of trustees, or other similar group of
representatives of the parties who establish or maintain the
benefit plan.
(17) "Premiums" means amounts or considerations, by
whatever name called, received on covered policies or contracts less returned premiums, considerations, and deposits
and less dividends and experience credits. "Premiums" does
not include amounts or considerations received for policies or
contracts or for the portions of policies or contracts for which
coverage is not provided under RCW 48.32A.025(2), except
that assessable premium shall not be reduced on account of
RCW 48.32A.025(2)(b)(iii) relating to interest limitations
and RCW 48.32A.025(3)(b) relating to limitations with
respect to one individual, one participant, and one contract
owner. "Premiums" does not include:
(a) Premiums in excess of five million dollars on an
unallocated annuity contract not issued under a governmental
retirement benefit plan, or its trustee, established under section 401, 403(b), or 457 of the United States Internal Revenue
Code; or
(b) With respect to multiple nongroup policies of life
insurance owned by one owner, whether the policy owner is
an individual, firm, corporation, or other person, and whether
the persons insured are officers, managers, employees, or
other persons, premiums in excess of five million dollars with
respect to these policies or contracts, regardless of the number of policies or contracts held by the owner.
(18)(a) "Principal place of business" of a plan sponsor or
a person other than a natural person means the single state in
which the natural persons who establish policy for the direction, control, and coordination of the operations of the entity
as a whole primarily exercise that function, determined by the
[Title 48 RCW—page 221]
48.32A.055
Title 48 RCW: Insurance
association in its reasonable judgment by considering the following factors:
(i) The state in which the primary executive and administrative headquarters of the entity is located;
(ii) The state in which the principal office of the chief
executive officer of the entity is located;
(iii) The state in which the board of directors, or similar
governing person or persons, of the entity conducts the
majority of its meetings;
(iv) The state in which the executive or management
committee of the board of directors, or similar governing person or persons, of the entity conducts the majority of its meetings;
(v) The state from which the management of the overall
operations of the entity is directed; and
(vi) In the case of a benefit plan sponsored by affiliated
companies comprising a consolidated corporation, the state
in which the holding company or controlling affiliate has its
principal place of business as determined using the factors in
(a)(i) through (v) of this subsection.
However, in the case of a plan sponsor, if more than fifty
percent of the participants in the benefit plan are employed in
a single state, that state is the principal place of business of
the plan sponsor.
(b) The principal place of business of a plan sponsor of a
benefit plan described in subsection (16)(c) of this section is
the principal place of business of the association, committee,
joint board of trustees, or other similar group of representatives of the parties who establish or maintain the benefit plan
that, in lieu of a specific or clear designation of a principal
place of business, is the principal place of business of the
employer or employee organization that has the largest
investment in the benefit plan in question.
(19) "Receivership court" means the court in the insolvent or impaired insurer's state having jurisdiction over the
conservation, rehabilitation, or liquidation of the insurer.
(20) "Resident" means a person to whom a contractual
obligation is owed and who resides in this state on the date of
entry of a court order that determines a member insurer to be
an impaired insurer or a court order that determines a member
insurer to be an insolvent insurer, whichever occurs first. A
person may be a resident of only one state, which in the case
of a person other than a natural person is its principal place of
business. Citizens of the United States that are either (a) residents of foreign countries, or (b) residents of United States
possessions, territories, or protectorates that do not have an
association similar to the association created by this chapter,
are residents of the state of domicile of the insurer that issued
the policies or contracts.
(21) "Structured settlement annuity" means an annuity
purchased in order to fund periodic payments for a plaintiff or
other claimant in payment for or with respect to personal
injury suffered by the plaintiff or other claimant.
(22) "State" means a state, the District of Columbia,
Puerto Rico, and a United States possession, territory, or protectorate.
(23) "Supplemental contract" means a written agreement
entered into for the distribution of proceeds under a life, disability, or annuity policy or contract.
(24) "Unallocated annuity contract" means an annuity
contract or group annuity certificate which is not issued to
[Title 48 RCW—page 222]
and owned by an individual, except to the extent of any annuity benefits guaranteed to an individual by an insurer under
the contract or certificate. [2001 c 50 § 5.]
48.32A.055
48.32A.055 Creation of the association. (1) There is
created a nonprofit unincorporated legal entity to be known
as the Washington life and disability insurance guaranty
association which is composed of the commissioner ex officio and each member insurer. All member insurers must be
and remain members of the association as a condition of their
authority to transact insurance in this state. The association
shall perform its functions under the plan of operation established and approved under RCW 48.32A.095 and shall exercise its powers through a board of directors established under
RCW 48.32A.065. For purposes of administration and
assessment, the association shall maintain two accounts:
(a) The life insurance and annuity account which
includes the following subaccounts:
(i) Life insurance account;
(ii) Annuity account which includes annuity contracts
owned by a governmental retirement plan, or its trustee,
established under section 401, 403(b), or 457 of the United
States Internal Revenue Code, but otherwise excludes unallocated annuities; and
(iii) Unallocated annuity account, which excludes contracts owned by a governmental retirement benefit plan, or its
trustee, established under section 401, 403(b), or 457 of the
United States Internal Revenue Code; and
(b) The disability insurance account.
(2) The association is under the immediate supervision
of the commissioner and is subject to the applicable provisions of the insurance laws of this state. Meetings or records
of the association may be opened to the public upon majority
vote of the board of directors of the association. [2001 c 50 §
6.]
48.32A.065
48.32A.065 Board of directors. (1) The board of directors of the association consists of the commissioner ex officio
and not less than five nor more than nine member insurers
serving terms as established in the plan of operation. The
insurer members of the board are selected by member insurers subject to the approval of the commissioner.
Vacancies on the board are filled for the remaining
period of the term by a majority vote of the remaining board
members, subject to the approval of the commissioner.
(2) In approving selections or in appointing members to
the board, the commissioner shall consider, among other
things, whether all member insurers are fairly represented.
(3) Members of the board may be reimbursed from the
assets of the association for expenses incurred by them as
members of the board of directors but members of the board
are not otherwise compensated by the association for their
services. [2001 c 50 § 7.]
48.32A.075
48.32A.075 Powers and duties of the association. (1)
If a member insurer is an impaired insurer, the association
may, in its discretion, and subject to any conditions imposed
by the association that do not impair the contractual obligations of the impaired insurer and that are approved by the
commissioner:
(2004 Ed.)
Washington Life and Disability Insurance Guaranty Association Act
(a) Guaranty, assume, or reinsure, or cause to be guaranteed, assumed, or reinsured, any or all of the policies or contracts of the impaired insurer; or
(b) Provide such moneys, pledges, loans, notes, guarantees, or other means as are proper to effectuate (a) of this subsection and assure payment of the contractual obligations of
the impaired insurer pending action under (a) of this subsection.
(2) If a member insurer is an insolvent insurer, the association shall, in its discretion, either:
(a)(i)(A) Guaranty, assume, or reinsure, or cause to be
guaranteed, assumed, or reinsured, the policies or contracts of
the insolvent insurer; or
(B) Assure payment of the contractual obligations of the
insolvent insurer; and
(ii) Provide moneys, pledges, loans, notes, guarantees, or
other means reasonably necessary to discharge the association's duties; or
(b) Provide benefits and coverages in accordance with
the following provisions:
(i) With respect to life and disability insurance policies
and annuities, assure payment of benefits for premiums identical to the premiums and benefits, except for terms of conversion and renewability, that would have been payable
under the policies or contracts of the insolvent insurer, for
claims incurred:
(A) With respect to group policies and contracts, not
later than the earlier of the next renewal date under those policies or contracts or forty-five days, but in no event less than
thirty days, after the date on which the association becomes
obligated with respect to the policies and contracts;
(B) With respect to nongroup policies, contracts, and
annuities not later than the earlier of the next renewal date, if
any, under the policies or contracts or one year, but in no
event less than thirty days, from the date on which the association becomes obligated with respect to the policies or contracts;
(ii) Make diligent efforts to provide all known insureds
or annuitants, for nongroup policies and contracts, or group
policy owners with respect to group policies and contracts,
thirty days notice of the termination of the benefits provided;
(iii) With respect to nongroup life and disability insurance policies and annuities covered by the association, make
diligent efforts to make available to each known insured or
annuitant, or owner if other than the insured or annuitant, and
with respect to an individual formerly insured or formerly an
annuitant under a group policy who is not eligible for replacement group coverage, make diligent efforts to make available
substitute coverage on an individual basis in accordance with
the provisions of (b)(iv) of this subsection, if the insureds or
annuitants had a right under law or the terminated policy or
annuity to convert coverage to individual coverage or to continue an individual policy or annuity in force until a specified
age or for a specified time, during which the insurer had no
right unilaterally to make changes in any provision of the policy or annuity or had a right only to make changes in premium by class;
(iv)(A) The substitute coverage under (b)(iii) of this subsection, must be offered through a solvent, admitted insurer.
In the alternative, the association in its discretion, and subject
(2004 Ed.)
48.32A.075
to any conditions imposed by the association and approved
by the commissioner, may reissue the terminated coverage;
(B) Substituted coverage must be offered without requiring evidence of insurability, and may not provide for any
waiting period or exclusion that would not have applied
under the terminated policy;
(C) The association may reinsure any reissued policy;
(v) If the association elects to reissue terminated coverage at a premium rate different from that charged under the
terminated policy, the premium must be set by the association
in accordance with the amount of insurance provided and the
age and class of risk, subject to approval of the domiciliary
insurance commissioner and the receivership court;
(vi) The association's obligations with respect to coverage under any policy of the impaired or insolvent insurer or
under any reissued policy cease on the date the coverage or
policy is replaced by another similar policy by the policy
owner, the insured, or the association; or
(vii) When proceeding under this subsection (2)(b) with
respect to a policy or contract carrying guaranteed minimum
interest rates, the association shall assure the payment or
crediting of a rate of interest consistent with RCW
48.32A.025(2)(b)(iii).
(3) Nonpayment of premiums within thirty-one days
after the date required under the terms of any guaranteed,
assumed, or reissued policy or contract or substitute coverage
terminates the association's obligations under the policy or
coverage under this chapter with respect to the policy or coverage, except with respect to any claims incurred or any net
cash surrender value which may be due in accordance with
the provisions of this chapter.
(4) Premiums due for coverage after entry of an order of
liquidation of an insolvent insurer belong to and are payable
at the direction of the association, and the association is liable
for unearned premiums due to policy or contract owners arising after the entry of the order.
(5) The protection provided by this chapter does not
apply when any guaranty protection is provided to residents
of this state by the laws of the domiciliary state or jurisdiction
of the impaired or insolvent insurer other than this state.
(6) In carrying out its duties under subsection (2) of this
section, the association may:
(a) Subject to approval by a court in this state, impose
permanent policy or contract liens in connection with a guarantee, assumption, or reinsurance agreement, if the association finds that the amounts which can be assessed under this
chapter are less than the amounts needed to assure full and
prompt performance of the association's duties under this
chapter, or that the economic or financial conditions as they
affect member insurers are sufficiently adverse to render the
imposition of such permanent policy or contract liens, are in
the public interest; and
(b) Subject to approval by a court in this state, impose
temporary moratoriums or liens on payments of cash values
and policy loans, or any other right to withdraw funds held in
conjunction with policies or contracts, in addition to any contractual provisions for deferral of cash or policy loan value.
In addition, in the event of a temporary moratorium or moratorium charge imposed by the receivership court on payment
of cash values or policy loans, or on any other right to withdraw funds held in conjunction with policies or contracts, out
[Title 48 RCW—page 223]
48.32A.075
Title 48 RCW: Insurance
of the assets of the impaired or insolvent insurer, the association may defer the payment of cash values, policy loans, or
other rights by the association for the period of the moratorium or moratorium charge imposed by the receivership
court, except for claims covered by the association to be paid
in accordance with a hardship procedure established by the
liquidator or rehabilitator and approved by the receivership
court.
(7) A deposit in this state, held pursuant to law or
required by the commissioner for the benefit of creditors,
including policy owners, not turned over to the domiciliary
liquidator upon the entry of a final order of liquidation or
order approving a rehabilitation plan of an insurer domiciled
in this state or in a reciprocal state, under RCW 48.31.171,
shall be promptly paid to the association. The association is
entitled to retain a portion of any amount so paid to it equal to
the percentage determined by dividing the aggregate amount
of policy owners' claims related to that insolvency for which
the association has provided statutory benefits by the aggregate amount of all policy owners' claims in this state related
to that insolvency and shall remit to the domiciliary receiver
the amount so paid to the association and not retained under
this subsection. Any amount so paid to the association less
the amount not retained by it shall be treated as a distribution
of estate assets under RCW 48.31.185 or similar provision of
the state of domicile of the impaired or insolvent insurer.
(8) If the association fails to act within a reasonable
period of time with respect to an insolvent insurer, as provided in subsection (2) of this section, the commissioner has
the powers and duties of the association under this chapter
with respect to the insolvent insurer.
(9) The association may render assistance and advice to
the commissioner, upon the commissioner's request, concerning rehabilitation, payment of claims, continuance of coverage, or the performance of other contractual obligations of an
impaired or insolvent insurer.
(10) The association has standing to appear or intervene
before a court or agency in this state with jurisdiction over an
impaired or insolvent insurer concerning which the association is or may become obligated under this chapter or with
jurisdiction over any person or property against which the
association may have rights through subrogation or otherwise. Standing extends to all matters germane to the powers
and duties of the association, including, but not limited to,
proposals for reinsuring, modifying, or guaranteeing the policies or contracts of the impaired or insolvent insurer and the
determination of the policies or contracts and contractual
obligations. The association also has the right to appear or
intervene before a court or agency in another state with jurisdiction over an impaired or insolvent insurer for which the
association is or may become obligated or with jurisdiction
over any person or property against whom the association
may have rights through subrogation or otherwise.
(11)(a) A person receiving benefits under this chapter is
deemed to have assigned the rights under, and any causes of
action against any person for losses arising under, resulting
from, or otherwise relating to, the covered policy or contract
to the association to the extent of the benefits received
because of this chapter, whether the benefits are payments of
or on account of contractual obligations, continuation of coverage, or provision of substitute or alternative coverages. The
[Title 48 RCW—page 224]
association may require an assignment to it of such rights and
cause of action by any payee, policy or contract owner, beneficiary, insured, or annuitant as a condition precedent to the
receipt of any right or benefits conferred by this chapter upon
the person.
(b) The subrogation rights of the association under this
subsection have the same priority against the assets of the
impaired or insolvent insurer as that possessed by the person
entitled to receive benefits under this chapter.
(c) In addition to (a) and (b) of this subsection, the association has all common law rights of subrogation and any
other equitable or legal remedy that would have been available to the impaired or insolvent insurer or owner, beneficiary, or payee of a policy or contract with respect to the policy or contracts, including without limitation, in the case of a
structured settlement annuity, any rights of the owner, beneficiary, or payee of the annuity, to the extent of benefits
received under this chapter, against a person originally or by
succession responsible for the losses arising from the personal injury relating to the annuity or payment therefor,
excepting any such person responsible solely by reason of
serving as an assignee in respect of a qualified assignment
under section 130 of the United States Internal Revenue
Code.
(d) If (a) through (c) of this subsection are invalid or
ineffective with respect to any person or claim for any reason,
the amount payable by the association with respect to the
related covered obligations shall be reduced by the amount
realized by any other person with respect to the person or
claim that is attributable to the policies, or portion thereof,
covered by the association.
(e) If the association has provided benefits with respect
to a covered obligation and a person recovers amounts as to
which the association has rights as described in this subsection, the person shall pay to the association the portion of the
recovery attributable to the policies, or portion thereof, covered by the association.
(12) In addition to the rights and powers elsewhere in
this chapter, the association may:
(a) Enter into such contracts as are necessary or proper to
carry out the provisions and purposes of this chapter;
(b) Sue or be sued, including taking any legal actions
necessary or proper to recover any unpaid assessments under
RCW 48.32A.085 and to settle claims or potential claims
against it;
(c) Borrow money to effect the purposes of this chapter;
any notes or other evidence of indebtedness of the association
not in default are legal investments for domestic insurers and
may be carried as admitted assets;
(d) Employ or retain such persons as are necessary or
appropriate to handle the financial transactions of the association, and to perform such other functions as become necessary or proper under this chapter;
(e) Take such legal action as may be necessary or appropriate to avoid or recover payment of improper claims;
(f) Exercise, for the purposes of this chapter and to the
extent approved by the commissioner, the powers of a
domestic life or disability insurer, but in no case may the
association issue insurance policies or annuity contracts other
than those issued to perform its obligations under this chapter;
(2004 Ed.)
Washington Life and Disability Insurance Guaranty Association Act
(g) Organize itself as a corporation or in other legal form
permitted by the laws of the state;
(h) Request information from a person seeking coverage
from the association in order to aid the association in determining its obligations under this chapter with respect to the
person, and the person shall promptly comply with the
request; and
(i) Take other necessary or appropriate action to discharge its duties and obligations under this chapter or to exercise its powers under this chapter.
(13) The association may join an organization of one or
more other state associations of similar purposes, to further
the purposes and administer the powers and duties of the
association.
(14)(a) At any time within one year after the coverage
date, which is the date on which the association becomes
responsible for the obligations of a member insurer, the association may elect to succeed to the rights and obligations of
the member insurer, that accrue on or after the coverage date
and that relate to contracts covered, in whole or in part, by the
association, under any one or more indemnity reinsurance
agreements entered into by the member insurer as a ceding
insurer and selected by the association. However, the association may not exercise an election with respect to a reinsurance agreement if the receiver, rehabilitator, or liquidator of
the member insurer has previously and expressly disaffirmed
the reinsurance agreement. The election is effective when
notice is provided to the receiver, rehabilitator, or liquidator
and to the affected reinsurers. If the association makes an
election, the following provisions apply with respect to the
agreements selected by the association:
(i) The association is responsible for all unpaid premiums due under the agreements, for periods both before and
after the coverage date, and is responsible for the performance of all other obligations to be performed after the coverage date, in each case which relate to contracts covered, in
whole or in part, by the association. The association may
charge contracts covered in part by the association, through
reasonable allocation methods, the costs for reinsurance in
excess of the obligations of the association;
(ii) The association is entitled to any amounts payable by
the reinsurer under the agreements with respect to losses or
events that occur in periods after the coverage date and that
relate to contracts covered by the association, in whole or in
part. However, upon receipt of any such amounts, the association is obliged to pay to the beneficiary under the policy or
contract on account of which the amounts were paid a portion
of the amount equal to the excess of: The amount received by
the association, over the benefits paid by the association on
account of the policy or contract, less the retention of the
impaired or insolvent member insurer applicable to the loss
or event;
(iii) Within thirty days following the association's election, the association and each indemnity reinsurer shall calculate the net balance due to or from the association under each
reinsurance agreement as of the date of the association's election, giving full credit to all items paid by either the member
insurer, or its receiver, rehabilitator, or liquidator, or the
indemnity reinsurer during the period between the coverage
date and the date of the association's election. Either the association or indemnity reinsurer shall pay the net balance due
(2004 Ed.)
48.32A.075
the other within five days of the completion of this calculation. If the receiver, rehabilitator, or liquidator has received
any amounts due the association pursuant to (a)(ii) of this
subsection, the receiver, rehabilitator, or liquidator shall
remit the same to the association as promptly as practicable;
and
(iv) If the association, within sixty days of the election,
pays the premiums due for periods both before and after the
coverage date that relate to contracts covered by the association, in whole or in part, the reinsurer is not entitled to terminate the reinsurance agreements, insofar as the agreements
relate to contracts covered by the association, in whole or in
part, and is not entitled to set off any unpaid premium due for
periods prior to the coverage date against amounts due the
association;
(b) In the event the association transfers its obligations to
another insurer, and if the association and the other insurer
agree, the other insurer succeeds to the rights and obligations
of the association under (a) of this subsection effective as of
the date agreed upon by the association and the other insurer
and regardless of whether the association has made the election referred to in (a) of this subsection. However:
(i) The indemnity reinsurance agreements automatically
terminate for new reinsurance unless the indemnity reinsurer
and the other insurer agree to the contrary;
(ii) The obligations described in (a)(ii) of this subsection
no longer apply on and after the date the indemnity reinsurance agreement is transferred to the third party insurer; and
(iii) This subsection (14)(b) does not apply if the association has previously expressly determined in writing that it
will not exercise the election referred to in (a) of this subsection;
(c) The provisions of this subsection supersede the provisions of any law of this state or of any affected reinsurance
agreement that provides for or requires any payment of reinsurance proceeds, on account of losses or events that occur in
periods after the coverage date, to the receiver, liquidator, or
rehabilitator of the insolvent member insurer. The receiver,
rehabilitator, or liquidator remains entitled to any amounts
payable by the reinsurer under the reinsurance agreement
with respect to losses or events that occur in periods prior to
the coverage date, subject to applicable setoff provisions; and
(d) Except as set forth under this subsection, this subsection does not alter or modify the terms and conditions of the
indemnity reinsurance agreements of the insolvent member
insurer. This subsection does not abrogate or limit any rights
of any reinsurer to claim that it is entitled to rescind a reinsurance agreement. This subsection does not give a policy owner
or beneficiary an independent cause of action against an
indemnity reinsurer that is not otherwise set forth in the
indemnity reinsurance agreement.
(15) The board of directors of the association has discretion and may exercise reasonable business judgment to determine the means by which the association provides the benefits of this chapter in an economical and efficient manner.
(16) When the association has arranged or offered to provide the benefits of this chapter to a covered person under a
plan or arrangement that fulfills the association's obligations
under this chapter, the person is not entitled to benefits from
the association in addition to or other than those provided
under the plan or arrangement.
[Title 48 RCW—page 225]
48.32A.085
Title 48 RCW: Insurance
(17) Venue in a suit against the association arising under
this chapter is in the county in which liquidation or rehabilitation proceedings have been filed in the case of a domestic
insurer. In other cases, venue is in King county or Thurston
county. The association is not required to give an appeal bond
in an appeal that relates to a cause of action arising under this
chapter.
(18) In carrying out its duties in connection with guaranteeing, assuming, or reinsuring policies or contracts under
subsection (1) or (2) of this section, the association may, subject to approval of the receivership court, issue substitute
coverage for a policy or contract that provides an interest
rate, crediting rate, or similar factor determined by use of an
index or other external reference stated in the policy or contract employed in calculating returns or changes in value by
issuing an alternative policy or contract in accordance with
the following provisions:
(a) In lieu of the index or other external reference provided for in the original policy or contract, the alternative
policy or contract provides for: (i) A fixed interest rate;
(ii) payment of dividends with minimum guarantees; or (iii) a
different method for calculating interest or changes in value;
(b) There is no requirement for evidence of insurability,
waiting period, or other exclusion that would not have
applied under the replaced policy or contract; and
(c) The alternative policy or contract is substantially similar to the replaced policy or contract in all other material
terms. [2001 c 50 § 8.]
48.32A.085 Assessments. (1) For the purpose of providing the funds necessary to carry out the powers and duties
of the association, the board of directors shall assess the
member insurers, separately for each account, at such time
and for such amounts as the board finds necessary. Assessments are due not less than thirty days after prior written
notice to the member insurers and accrue interest at twelve
percent per annum on and after the due date.
(2) There are two classes of assessments, as follows:
(a) Class A assessments are authorized and called for the
purpose of meeting administrative and legal costs and other
expenses. Class A assessments may be authorized and called
whether or not related to a particular impaired or insolvent
insurer; and
(b) Class B assessments are authorized and called to the
extent necessary to carry out the powers and duties of the
association under RCW 48.32A.075 with regard to an
impaired or an insolvent insurer.
(3)(a) The amount of a class A assessment is determined
by the board and may be authorized and called on a pro rata
or nonpro rata basis. If pro rata, the board may provide that it
be credited against future class B assessments. The total of all
nonpro rata assessments may not exceed one hundred fifty
dollars per member insurer in any one calendar year. The
amount of a class B assessment may be allocated for assessment purposes among the accounts pursuant to an allocation
formula which may be based on the premiums or reserves of
the impaired or insolvent insurer or any other standard determined by the board to be fair and reasonable under the circumstances.
(b) Class B assessments against member insurers for
each account and subaccount must be in the proportion that
48.32A.085
[Title 48 RCW—page 226]
the premiums received on business in this state by each
assessed member insurer on policies or contracts covered by
each account for the three most recent calendar years for
which information is available preceding the year in which
the insurer became insolvent or, in the case of an assessment
with respect to an impaired insurer, the three most recent calendar years for which information is available preceding the
year in which the insurer became impaired, bears to premiums received on business in this state for those calendar years
by all assessed member insurers.
(c) Assessments for funds to meet the requirements of
the association with respect to an impaired or insolvent
insurer may not be authorized or called until necessary to
implement the purposes of this chapter. Classification of
assessments under subsection (2) of this section and computation of assessments under this subsection must be made
with a reasonable degree of accuracy, recognizing that exact
determinations are not always possible. The association shall
notify each member insurer of its anticipated pro rata share of
an authorized assessment not yet called within one hundred
eighty days after the assessment is authorized.
(4) The association may abate or defer, in whole or in
part, the assessment of a member insurer if, in the opinion of
the board, payment of the assessment would endanger the
ability of the member insurer to fulfill its contractual obligations. In the event an assessment against a member insurer is
abated, or deferred in whole or in part, the amount by which
the assessment is abated or deferred may be assessed against
the other member insurers in a manner consistent with the
basis for assessments set forth in this section. Once the conditions that caused a deferral have been removed or rectified,
the member insurer shall pay all assessments that were
deferred pursuant to a repayment plan approved by the association.
(5)(a)(i) Subject to the provisions of (a)(ii) of this subsection, the total of all assessments authorized by the association with respect to a member insurer for each subaccount of
the life insurance and annuity account and for the health
account may not in one calendar year exceed two percent of
that member insurer's average annual premiums received in
this state on the policies and contracts covered by the subaccount or account during the three calendar years preceding
the year in which the insurer became an impaired or insolvent
insurer.
(ii) If two or more assessments are authorized in one calendar year with respect to insurers that become impaired or
insolvent in different calendar years, the average annual premiums for purposes of the aggregate assessment percentage
limitation in (a)(i) of this subsection must be equal and limited to the higher of the three-year average annual premiums
for the applicable subaccount or account as calculated under
this section.
(iii) If the maximum assessment, together with the other
assets of the association in an account, does not provide in
one year in either account an amount sufficient to carry out
the responsibilities of the association, the necessary additional funds must be assessed as soon thereafter as permitted
by this chapter.
(b) The board may provide in the plan of operation a
method of allocating funds among claims, whether relating to
(2004 Ed.)
Washington Life and Disability Insurance Guaranty Association Act
one or more impaired or insolvent insurers, when the maximum assessment is insufficient to cover anticipated claims.
(c) If the maximum assessment for a subaccount of the
life and annuity account in one year does not provide an
amount sufficient to carry out the responsibilities of the association, then under subsection (3)(b) of this section, the board
shall access the other subaccounts of the life and annuity
account for the necessary additional amount, subject to the
maximum stated in (a) of this subsection.
(6) The board may, by an equitable method as established in the plan of operation, refund to member insurers, in
proportion to the contribution of each insurer to that account,
the amount by which the assets of the account exceed the
amount the board finds is necessary to carry out during the
coming year the obligations of the association with regard to
that account, including assets accruing from assignment, subrogation, net realized gains, and income from investments. A
reasonable amount may be retained in any account to provide
funds for the continuing expenses of the association and for
future losses claims.
(7) Any member insurer may when determining its premium rates and policy owner dividends, as to any kind of
insurance within the scope of this chapter, consider the
amount reasonably necessary to meet its assessment obligations under this chapter.
(8) The association shall issue to each insurer paying an
assessment under this chapter, other than a class A assessment, a certificate of contribution, in a form prescribed by the
commissioner, for the amount of the assessment paid. All
outstanding certificates must be of equal dignity and priority
without reference to amounts or dates of issue. A certificate
of contribution may be shown by the insurer in its financial
statement as an asset in such form and for such amount, if
any, and period of time as the commissioner may approve.
(9)(a) A member insurer that wishes to protest all or part
of an assessment shall pay when due the full amount of the
assessment as set forth in the notice provided by the association. The payment is available to meet association obligations
during the pendency of the protest or any subsequent appeal.
Payment must be accompanied by a statement in writing that
the payment is made under protest and setting forth a brief
statement of the grounds for the protest.
(b) Within sixty days following the payment of an
assessment under protest by a member insurer, the association shall notify the member insurer in writing of its determination with respect to the protest unless the association notifies the member insurer that additional time is required to
resolve the issues raised by the protest.
(c) Within thirty days after a final decision has been
made, the association shall notify the protesting member
insurer in writing of that final decision. Within sixty days of
receipt of notice of the final decision, the protesting member
insurer may appeal that final action to the commissioner.
(d) In the alternative to rendering a final decision with
respect to a protest based on a question regarding the assessment base, the association may refer protests to the commissioner for a final decision, with or without a recommendation
from the association.
(e) If the protest or appeal on the assessment is upheld,
the amount paid in error or excess must be returned to the
(2004 Ed.)
48.32A.095
member company. Interest on a refund due a protesting member must be paid at the rate actually earned by the association.
(10) The association may request information of member
insurers in order to aid in the exercise of its power under this
section and member insurers shall promptly comply with a
request. [2001 c 50 § 9.]
48.32A.095
48.32A.095 Plan of operation. (1)(a) The association
shall submit to the commissioner a plan of operation and any
amendments necessary or suitable to assure the fair, reasonable, and equitable administration of the association. The
plan of operation and any amendments are effective upon the
commissioner's written approval or unless it has not been disapproved within thirty days.
(b) If the association fails to submit a suitable plan of
operation within one hundred twenty days following July 22,
2001, or if at any time thereafter the association fails to submit suitable amendments to the plan, the commissioner shall,
after notice and hearing, adopt reasonable rules as necessary
or advisable to effectuate the provisions of this chapter. The
rules continue in force until modified by the commissioner or
superseded by a plan submitted by the association and
approved by the commissioner.
(2) All member insurers shall comply with the plan of
operation.
(3) The plan of operation must, in addition to requirements enumerated elsewhere in this chapter:
(a) Establish procedures for handling the assets of the
association;
(b) Establish the amount and method of reimbursing
members of the board of directors under RCW 48.32A.065;
(c) Establish regular places and times for meetings
including telephone conference calls of the board of directors;
(d) Establish procedures for records to be kept of all
financial transactions of the association, its agents, and the
board of directors;
(e) Establish the procedures whereby selections for the
board of directors are made and submitted to the commissioner;
(f) Establish any additional procedures for assessments
under RCW 48.32A.085; and
(g) Contain additional provisions necessary or proper for
the execution of the powers and duties of the association.
(4) The plan of operation may provide that any or all
powers and duties of the association, except those under
RCW 48.32A.075(12)(c) and 48.32A.085, are delegated to a
corporation, association, or other organization which performs or will perform functions similar to those of this association, or its equivalent, in two or more states. Such a corporation, association, or organization must be reimbursed for
any payments made on behalf of the association and must be
paid for its performance of any function of the association. A
delegation under this subsection takes effect only with the
approval of both the board of directors and the commissioner,
and may be made only to a corporation, association, or organization which extends protection not substantially less
favorable and effective than that provided by this chapter.
[2001 c 50 § 10.]
[Title 48 RCW—page 227]
48.32A.105
Title 48 RCW: Insurance
48.32A.105
48.32A.105 Duties and powers of the commissioner.
(1) In addition to the duties and powers enumerated elsewhere in this chapter, the commissioner shall:
(a) Upon request of the board of directors, provide the
association with a statement of the premiums in this and other
appropriate states for each member insurer;
(b) When an impairment is declared and the amount of
the impairment is determined, serve a demand upon the
impaired insurer to make good the impairment within a reasonable time; notice to the impaired insurer constitutes notice
to its shareholders, if any; the failure of the insurer to
promptly comply with such a demand does not excuse the
association from the performance of its powers and duties
under this chapter; and
(c) In any liquidation or rehabilitation proceeding
involving a domestic insurer, be appointed as the liquidator
or rehabilitator.
(2) In addition to the duties and powers enumerated elsewhere in this chapter, the commissioner may suspend or
revoke, after notice and hearing, the certificate of authority to
transact insurance in this state of any member insurer which
fails to pay an assessment when due or fails to comply with
the plan of operation. As an alternative the commissioner
may levy a forfeiture on any member insurer that fails to pay
an assessment when due. The forfeiture may not exceed five
percent of the unpaid assessment per month, but no forfeiture
may be less than one hundred dollars per month.
(3) A final action by the board of directors of the association may be appealed to the commissioner by a member
insurer if the appeal is taken within sixty days of the member
insurer's receipt of notice of the final action being appealed.
A final action or order of the commissioner is subject to judicial review in a court of competent jurisdiction in accordance
with the laws of this state that apply to the actions or orders
of the commissioner.
(4) The liquidator, rehabilitator, or conservator of an
impaired insurer may notify all interested persons of the
effect of this chapter. [2001 c 50 § 11.]
48.32A.115
48.32A.115 Prevention of insolvencies. The commissioner shall aid in the detection and prevention of insurer
insolvencies or impairments.
(1) It is the duty of the commissioner to:
(a) Notify the commissioners of all the other states, territories of the United States, and the District of Columbia
within thirty days following the action taken or the date the
action occurs, when the commissioner takes any of the following actions against a member insurer:
(i) Revocation of license;
(ii) Suspension of license; or
(iii) Makes a formal order that the company restrict its
premium writing, obtain additional contributions to surplus,
withdraw from the state, reinsure all or any part of its business, or increase capital, surplus, or any other account for the
security of policy owners or creditors;
(b) Report to the board of directors when the commissioner has taken any of the actions set forth in (a) of this subsection or has received a report from any other commissioner
indicating that any such action has been taken in another
state. The report to the board of directors must contain all sig[Title 48 RCW—page 228]
nificant details of the action taken or the report received from
another commissioner;
(c) Report to the board of directors when the commissioner has reasonable cause to believe from an examination,
whether completed or in process, of any member insurer that
the insurer may be an impaired or insolvent insurer; and
(d) Furnish to the board of directors the national association of insurance commissioners insurance regulatory information system ratios and listings of companies not included
in the ratios developed by the national association of insurance commissioners, and the board may use the information
contained therein in carrying out its duties and responsibilities under this section. The report and the information must
be kept confidential by the board of directors until such time
as made public by the commissioner or other lawful authority.
(2) The commissioner may seek the advice and recommendations of the board of directors concerning any matter
affecting the duties and responsibilities of the commissioner
regarding the financial condition of member insurers and
companies seeking admission to transact insurance business
in this state.
(3) The board of directors may, upon majority vote,
make reports and recommendations to the commissioner
upon any matter germane to the solvency, liquidation, rehabilitation, or conservation of any member insurer or germane
to the solvency of any company seeking to do an insurance
business in this state. The reports and recommendations are
not public documents.
(4) The board of directors may, upon majority vote,
notify the commissioner of any information indicating a
member insurer may be an impaired or insolvent insurer.
(5) The board of directors may, upon majority vote,
make recommendations to the commissioner for the detection
and prevention of insurer insolvencies. [2001 c 50 § 12.]
48.32A.125
48.32A.125 Credits for assessments paid—Tax offsets. (1) A member insurer may offset against its premium
tax liability to this state an assessment described in RCW
48.32A.085(8) to the extent of twenty percent of the amount
of the assessment for each of the five calendar years following the year in which the assessment was paid. In the event a
member insurer ceases doing business, all uncredited assessments may be credited against its premium tax liability for
the year it ceases doing business.
(2) Any sums that are acquired by refund, under RCW
48.32A.085(6), from the association by member insurers, and
that have been offset against premium taxes as provided in
subsection (1) of this section, must be paid by the insurers to
the commissioner and then deposited with the state treasurer
for credit to the general fund of the state of Washington. The
association shall notify the commissioner that refunds have
been made. [2001 c 50 § 13.]
48.32A.135
48.32A.135 Miscellaneous provisions. (1) This chapter does not reduce the liability for unpaid assessments of the
insureds of an impaired or insolvent insurer operating under a
plan with assessment liability.
(2) Records must be kept of all meetings of the board of
directors to discuss the activities of the association in carry(2004 Ed.)
Washington Life and Disability Insurance Guaranty Association Act
ing out its powers and duties under RCW 48.32A.075. The
records of the association with respect to an impaired or
insolvent insurer may not be disclosed prior to the termination of a liquidation, rehabilitation, or conservation proceeding involving the impaired or insolvent insurer, upon the termination of the impairment or insolvency of the insurer, or
upon the order of a court of competent jurisdiction. This subsection does not limit the duty of the association to render a
report of its activities under RCW 48.32A.145.
(3) For the purpose of carrying out its obligations under
this chapter, the association is a creditor of the impaired or
insolvent insurer to the extent of assets attributable to covered policies reduced by any amounts to which the association is entitled as subrogee under RCW 48.32A.075(11).
Assets of the impaired or insolvent insurer attributable to
covered policies must be used to continue all covered policies
and pay all contractual obligations of the impaired or insolvent insurer as required by this chapter. Assets attributable to
covered policies, as used in this subsection, are that proportion of the assets which the reserves that should have been
established for such policies bear to the reserves that should
have been established for all policies of insurance written by
the impaired or insolvent insurer.
(4) As a creditor of the impaired or insolvent insurer as
established in subsection (3) of this section, the association
and other similar associations are entitled to receive a disbursement of assets out of the marshaled assets, from time to
time as the assets become available to reimburse it, as a credit
against contractual obligations under this chapter. If the liquidator has not, within one hundred twenty days of a final
determination of insolvency of an insurer by the receivership
court, made an application to the court for the approval of a
proposal to disburse assets out of marshaled assets to guaranty associations having obligations because of the insolvency, then the association is entitled to make application to
the receivership court for approval of its own proposal to disburse these assets.
(5)(a) Prior to the termination of any liquidation, rehabilitation, or conservation proceeding, the court may take into
consideration the contributions of the respective parties,
including the association, the shareholders, and the policy
owners of the insolvent insurer, and any other party with a
bona fide interest, in making an equitable distribution of the
ownership rights of the insolvent insurer. In such a determination, consideration must be given to the welfare of the policy owners of the continuing or successor insurer.
(b) A distribution to stockholders, if any, of an impaired
or insolvent insurer shall not be made until and unless the
total amount of valid claims of the association with interest
thereon for funds expended in carrying out its powers and
duties under RCW 48.32A.075 with respect to the insurer
have been fully recovered by the association.
(6)(a) If an order for liquidation or rehabilitation of an
insurer domiciled in this state has been entered, the receiver
appointed under the order has a right to recover on behalf of
the insurer, from any affiliate that controlled it, the amount of
distributions, other than stock dividends paid by the insurer
on its capital stock, made at any time during the five years
preceding the petition for liquidation or rehabilitation subject
to the limitations of (b) through (d) of this subsection.
(2004 Ed.)
48.32A.175
(b) A distribution is not recoverable if the insurer shows
that when paid the distribution was lawful and reasonable,
and that the insurer did not know and could not reasonably
have known that the distribution might adversely affect the
ability of the insurer to fulfill its contractual obligations.
(c) Any person who was an affiliate that controlled the
insurer at the time the distributions were paid is liable up to
the amount of distributions received. Any person who was an
affiliate that controlled the insurer at the time the distributions were declared, is liable up to the amount of distributions
which would have been received if they had been paid immediately. If two or more persons are liable with respect to the
same distributions, they are jointly and severally liable.
(d) The maximum amount recoverable under this subsection is the amount needed in excess of all other available
assets of the insolvent insurer to pay the contractual obligations of the insolvent insurer.
(e) If any person liable under (c) of this subsection is
insolvent, all its affiliates that controlled it at the time the distribution was paid are jointly and severally liable for any
resulting deficiency in the amount recovered from the insolvent affiliate. [2001 c 50 § 14.]
48.32A.145
48.32A.145 Examination of the association—Annual
report. The association is subject to examination and regulation by the commissioner. The board of directors shall submit to the commissioner each year, not later than one hundred
eighty days after the association's fiscal year, a financial
report in a form approved by the commissioner and a report
of its activities during the preceding fiscal year. Upon the
request of a member insurer, the association shall provide the
member insurer with a copy of the report. [2001 c 50 § 15.]
48.32A.155
48.32A.155 Tax exemptions. The association is
exempt from payment of all fees and all taxes levied by this
state or any of its subdivisions, except taxes levied on real
property. [2001 c 50 § 16.]
48.32A.165
48.32A.165 Immunity. There is no liability on the part
of and no cause of action of any nature may arise against any
member insurer or its agents or employees, the association or
its agents or employees, members of the board of directors, or
the commissioner or the commissioner's representatives, for
any action or omission by them in the performance of their
powers and duties under this chapter. Immunity extends to
the participation in any organization of one or more other
state associations of similar purposes and to any such organization and its agents or employees. [2001 c 50 § 17.]
48.32A.175
48.32A.175 Stay of proceedings—Reopening default
judgments. All proceedings in which the insolvent insurer is
a party in any court in this state are stayed sixty days from the
date an order of liquidation, rehabilitation, or conservation is
final to permit proper legal action by the association on any
matters germane to its powers or duties. As to judgment
under any decision, order, verdict, or finding based on default
the association may apply to have such a judgment set aside
by the same court that made such a judgment and must be
permitted to defend against the suit on the merits. [2001 c 50
§ 18.]
[Title 48 RCW—page 229]
48.32A.185
48.32A.185
Title 48 RCW: Insurance
48.32A.185 Prohibited advertisement of insurance
guaranty association act in insurance sales—Notice to
policy owners. (1) No person, including an insurer, agent, or
affiliate of an insurer may make, publish, disseminate, circulate, or place before the public, or cause directly or indirectly,
to be made, published, disseminated, circulated, or placed
before the public, in any newspaper, magazine, or other publication, or in the form of a notice, circular, pamphlet, letter,
or poster, or over any radio station or television station, or in
any other way, any advertisement, announcement, or statement, written or oral, which uses the existence of the insurance guaranty association of this state for the purpose of
sales, solicitation, or inducement to purchase any form of
insurance covered by the Washington life and disability
insurance guaranty association act. However, this section
does not apply to the Washington life and disability insurance
guaranty association or any other entity which does not sell or
solicit insurance.
(2) Within one hundred eighty days after July 22, 2001,
the association shall prepare a summary document describing
the general purposes and current limitations of this chapter
and complying with subsection (3) of this section. This document must be submitted to the commissioner for approval.
The document must also be available upon request by a policy owner. The distribution, delivery, contents, or interpretation of this document does not guarantee that either the policy
or the contract or the owner of the policy or contract is covered in the event of the impairment or insolvency of a member insurer. The description document must be revised by the
association as amendments to this chapter may require. Failure to receive this document does not give the policy owner,
contract owner, certificate holder, or insured any greater
rights than those stated in this chapter.
(3) The document prepared under subsection (2) of this
section must contain a clear and conspicuous disclaimer on
its face. The commissioner shall establish the form and content of the disclaimer. The disclaimer must:
(a) State the name and address of the life and disability
insurance guaranty association and insurance department;
(b) Prominently warn the policy or contract owner that
the life and disability insurance guaranty association may not
cover the policy or, if coverage is available, it is subject to
substantial limitations and exclusions and conditioned on
continued residence in this state;
(c) State the types of policies for which guaranty funds
provide coverage;
(d) State that the insurer and its agents are prohibited by
law from using the existence of the life and disability insurance guaranty association for the purpose of sales, solicitation, or inducement to purchase any form of insurance;
(e) State that the policy or contract owner should not rely
on coverage under the life and disability insurance guaranty
association when selecting an insurer;
(f) Explain rights available and procedures for filing a
complaint to allege a violation of any provisions of this chapter; and
(g) Provide other information as directed by the commissioner including but not limited to, sources for information
about the financial condition of insurers provided that the
information is not proprietary and is subject to disclosure
under chapter 42.17 RCW.
[Title 48 RCW—page 230]
(4) A member insurer must retain evidence of compliance with subsection (2) of this section for as long as the policy or contract for which the notice is given remains in effect.
[2001 c 50 § 19.]
48.32A.901
48.32A.901 Prospective application—Savings—2001
c 50. (1) This chapter does not apply to any impaired insurer
that was under an order of rehabilitation or conservation, or
to any insolvent insurer that was placed under an order of liquidation, prior to July 22, 2001.
(2) Any section repealed in this act pertaining to the
powers and obligations of the association, reinsurance and
guaranty of policies, assessments, and premium tax offsets
shall apply to impaired insurers placed under an order of
rehabilitation or conservation, and to insolvent insurers
placed under an order of liquidation, prior to July 22, 2001.
[2001 c 50 § 20.]
48.32A.902
48.32A.902 Captions not law—2001 c 50. Captions
used in this act are not any part of the law. [2001 c 50 § 21.]
Chapter 48.34 RCW
CREDIT LIFE INSURANCE AND CREDIT
ACCIDENT AND HEALTH INSURANCE
Chapter 48.34
Sections
48.34.010
48.34.020
48.34.030
48.34.040
48.34.050
48.34.060
48.34.070
48.34.080
48.34.090
48.34.100
48.34.110
48.34.120
48.34.900
48.34.910
Declaration of purpose—Liberal construction.
Chapter part of insurance code—What insurance subject to
chapter.
Definitions.
Authorized forms.
Life—Limitation on amount under individual policy.
Life—Limitation on amount repayable under group policy.
Accident and health—Limitation on amount.
Commencement, termination date of term.
Policy or certificate—Contents—Delivery, copy of application or notice in lieu—Substitute insurer, premium, etc., on
rejection.
Filing policies, notices, riders, etc.—Approval by commissioner—Preexisting policies—Forms.
Refunds—Credits—Charges to debtor.
Debtor's right to furnish and obtain own insurance.
Severability—1961 c 219.
Small loan act [Consumer finance act] not affected.
48.34.010
48.34.010 Declaration of purpose—Liberal construction. The purpose of this chapter is to promote the public
welfare by regulating credit life insurance and credit accident
and health insurance. Nothing in this chapter is intended to
prohibit or discourage reasonable competition. The provisions of this chapter shall be liberally construed. [1961 c 219
§ 1.]
48.34.020
48.34.020 Chapter part of insurance code—What
insurance subject to chapter. (1) This chapter is a part of
the insurance code.
(2) All life insurance and all accident and health insurance in connection with loans or other credit transactions
shall be subject to the provisions of this chapter, except such
insurance under an individual policy in connection with a
loan or other credit transaction of more than ten years duration. Insurance shall not be subject to the provisions of this
chapter where its issuance is an isolated transaction on the
part of the insurer not related to an agreement or a plan for
(2004 Ed.)
Credit Life Insurance and Credit Accident and Health Insurance
insuring debtors of the creditor. [1969 ex.s. c 241 § 14; 1961
c 219 § 2.]
48.34.030
48.34.030 Definitions. For the purpose of this chapter:
(1) "Credit life insurance" means insurance on the life of a
debtor pursuant to or in connection with a specific loan or
other credit transaction;
(2) "Credit accident and health insurance" means insurance on a debtor to provide indemnity for payments becoming due on a specific loan or other credit transaction while the
debtor is disabled as defined in the policy;
(3) "Creditor" means the lender of money or vendor or
lessor of goods, services, properties, rights, or privileges, for
which payment is arranged through a credit transaction, or
any successor to the right, title, or interest of any such lender,
vendor, or lessor, and an affiliate, associate, or subsidiary of
any of them or a director, officer, or employee of any of them
or any other person in any way associated with any of them;
(4) "Debtor" means a borrower of money or a purchaser
or lessee of goods, services, properties, rights, or privileges
for which payment is arranged through a credit transaction;
(5) "Indebtedness" means the total amount payable by a
debtor to a creditor in connection with the loan or other credit
transaction. [1961 c 219 § 3.]
48.34.040
48.34.040 Authorized forms. Credit life insurance and
credit accident and health insurance shall be issued only in
the following forms:
(1) Individual policies of life insurance issued to debtors
on the term plan;
(2) Individual policies of accident and health insurance
issued to debtors on a term plan, or disability benefit provisions in individual policies of credit life insurance;
(3) Group policies of life insurance issued to creditors
providing insurance upon the lives of debtors on the term
plan;
(4) Group policies of accident and health insurance
issued to creditors on a term plan insuring debtors, or disability benefit provisions in group credit life insurance policies to
provide such coverage. [1961 c 219 § 4.]
48.34.050
48.34.050 Life—Limitation on amount under individual policy. The initial amount of credit life insurance
under an individual policy shall not exceed the total amount
repayable under the contract of indebtedness. Where an
indebtedness is repayable in substantially equal installments,
the amount of insurance shall at no time exceed the scheduled
or actual amount of unpaid indebtedness, whichever is
greater. [1961 c 219 § 5.]
48.34.060
48.34.060 Life—Limitation on amount repayable
under group policy. The initial amount of credit life insurance under a group policy shall at no time exceed the amount
owed by the debtor which is repayable in installments to the
creditor. [1987 c 130 § 1; 1983 1st ex.s. c 32 § 23; 1977 c 61
§ 2; 1967 ex.s. c 82 § 1; 1961 c 219 § 6.]
48.34.070
48.34.070 Accident and health—Limitation on
amount. The total amount of periodic indemnity payable by
credit accident and health insurance in the event of disability,
(2004 Ed.)
48.34.090
as defined in the policy, shall not exceed the aggregate of the
periodic scheduled unpaid installments of the indebtedness;
and the amount of such periodic indemnity payment shall not
exceed the original indebtedness divided by the number of
periodic installments. [1961 c 219 § 7.]
48.34.080
48.34.080 Commencement, termination date of term.
The term of any credit life insurance or credit accident and
health insurance shall, subject to acceptance by the insurer,
commence on the date when the debtor becomes obligated to
the creditor: PROVIDED, That, where a group policy provides coverage with respect to existing obligations, the insurance on a debtor with respect to such indebtedness shall commence on the effective date of the policy. Where evidence of
insurability is required and such evidence is furnished more
than thirty days after the date when the debtor becomes obligated to the creditor, the term of the insurance may commence on the date on which the insurance company determines the evidence to be satisfactory, and in such event there
shall be an appropriate refund or adjustment of any charge to
the debtor for insurance. The term of such insurance shall not
extend more than fifteen days beyond the scheduled maturity
date of indebtedness, except when extended without additional cost to the debtor. If the indebtedness is discharged due
to renewal or refinancing prior to the scheduled maturity
date, the insurance in force shall be terminated before any
new insurance may be issued in connection with renewed or
refinanced indebtedness. In all cases of termination prior to
scheduled maturity, a refund shall be paid or credited as provided in RCW 48.34.110. [1961 c 219 § 8.]
48.34.090
48.34.090 Policy or certificate—Contents—Delivery,
copy of application or notice in lieu—Substitute insurer,
premium, etc., on rejection. (1) All credit life insurance and
credit accident and health insurance shall be evidenced by an
individual policy, or in the case of group insurance by a certificate of insurance, which individual policy or group certificate of insurance shall be delivered to the debtor.
(2) Each individual policy or group certificate of credit
life insurance, and/or credit accident and health insurance
shall, in addition to other requirements of law, set forth the
name and home office address of the insurer, the name or
names of the debtor or in the case of a certificate under a
group policy, the identity by name or otherwise of the debtor,
the premium or amount of payment, if any, by the debtor separately for credit life insurance and credit accident and health
insurance, a description of the coverage including the amount
and term thereof, and any exceptions, limitations and restrictions, and shall state that the benefits shall be paid to the creditor to reduce or extinguish the unpaid indebtedness and,
wherever the amount of insurance exceeds the unpaid indebtedness, that any such excess shall be payable to a beneficiary,
other than the creditor, named by the debtor or to the debtor's
estate. With respect to any policy issued after September 8,
1975, credit life insurance shall not be subject to any exceptions or reductions other than for fraud, or for suicide occurring within two years of the effective date of the insurance.
(3) The individual policy or group certificate of insurance shall be delivered to the insured debtor at the time the
[Title 48 RCW—page 231]
48.34.100
Title 48 RCW: Insurance
indebtedness is incurred except as provided in subsections (4)
and (5).
(4) If such individual policy or group certificate of insurance is not delivered to the debtor at the time the indebtedness is incurred, a copy of the application for such policy or a
notice of proposed insurance, signed by the debtor and setting
forth the name and home office address of the insurer; the
name or names of the debtor; the premium or amount of payment by the debtor, if any, separately for credit life insurance
and credit accident and health insurance; the amount, term
and a brief description of the coverage provided, shall be
delivered to the debtor at the time such indebtedness is
incurred. The copy of the application for, or notice of proposed insurance, shall also refer exclusively to insurance coverage, and shall be separate and apart from the loan, sale or
other credit statement of account, instrument, or agreement,
or the application for any such loan, sale or credit, unless the
information required by this subsection is prominently set
forth therein under a descriptive heading which shall be
underlined and printed in capital letters. Upon acceptance of
the insurance by the insurer and within thirty days of the date
upon which the indebtedness is incurred, the insurer shall
cause the individual policy or group certificate of insurance
to be delivered to the debtor. The application or notice of proposed insurance shall state that upon acceptance by the
insurer, the insurance shall become effective as provided in
RCW 48.34.080.
(5) If the named insurer does not accept the risk, then the
debtor shall receive a policy or certificate of insurance setting
forth the name and home office address of the substituted
insurer and the amount of the premium to be charged, and if
the amount of premium is less than that set forth in the notice
of proposed insurance an appropriate refund shall be made.
[1975 1st ex.s. c 266 § 13; 1961 c 219 § 9.]
Severability—1975 1st ex.s. c 266: See note following RCW
48.01.010.
48.34.100
48.34.100 Filing policies, notices, riders, etc.—
Approval by commissioner—Preexisting policies—
Forms. (1) All policies, certificates of insurance, notices of
proposed insurance, applications for insurance, endorsements, and riders delivered or issued for delivery in this state
and the schedules of premium rates pertaining thereto shall
be filed with the commissioner.
(2) No such policies, certificates of insurance, notices of
proposed insurance, applications for insurance, endorsements, or riders shall be used in this state until approved by
the commissioner pursuant to RCW 48.18.100 and RCW
48.18.110. In addition to any grounds for disapproval provided therein, the form shall be disapproved both as to credit
life and credit accident and health insurance if the benefits
provided therein are not reasonable in relation to the premium charged.
(3) If a group policy of credit life insurance or credit
accident and health insurance has been delivered in this state
before midnight, June 7, 1961, on the first anniversary date
following such time the terms of the policy as they apply to
persons newly insured thereafter shall be rewritten to conform with the provisions of this chapter.
(4) If a group policy has been or is delivered in another
state before or after August 11, 1969, the forms to be filed by
[Title 48 RCW—page 232]
the insurer with the commissioner are the group certificates
and notices of proposed insurance delivered or issued for
delivery in this state. He shall approve them if:
(a) They provide the information that would be required
if the group policy was delivered in this state; and
(b) The applicable premium rates or charges do not
exceed those established by his rules or regulations. [1969
ex.s. c 241 § 15; 1961 c 219 § 10.]
48.34.110
48.34.110 Refunds—Credits—Charges to debtor.
(1) Each individual policy, or group certificate shall provide
that in the event of termination of the insurance prior to the
scheduled maturity date of the indebtedness, any refund of an
amount paid by the debtor for insurance shall be paid or credited promptly to the person entitled thereto. The formula to be
used in computing such refund shall be filed with and
approved by the commissioner.
(2) If a creditor requires a debtor to make any payment
for credit life insurance or credit accident and health insurance and an individual policy or group certificate of insurance is not issued, the creditor shall immediately give written
notice to such debtor and shall promptly make an appropriate
credit to the account.
(3) The amount charged to a debtor for any credit life or
credit accident and health insurance shall not exceed the premiums charged by the insurer, as computed at the time the
charge to the debtor is determined. [1961 c 219 § 11.]
48.34.120
48.34.120 Debtor's right to furnish and obtain own
insurance. When the credit life insurance or credit accident
and health insurance is required in connection with any credit
transaction, the debtor shall, upon request to the creditor,
have the option of furnishing the required amount of insurance through existing policies of insurance owned or controlled by him or of procuring and furnishing the required
coverage through any insurer authorized to transact an insurance business within this state. [1961 c 219 § 12.]
48.34.900
48.34.900 Severability—1961 c 219. If any provision
of this chapter, or the application of such provision to any
person or circumstance, shall be held invalid, the remainder
of the chapter and the application of such provision to any
person or circumstance other than those as to which it is held
invalid, shall not be affected thereby. [1961 c 219 § 13.]
48.34.910
48.34.910 Small loan act [Consumer finance act] not
affected. Nothing in this chapter shall be construed to permit
any practice prohibited by *chapter 31.08 RCW, nor is it
intended that this chapter shall amend or repeal any provision
of chapter 31.08 RCW, known as the **"Small Loan Act".
[1961 c 219 § 14.]
Reviser's note: *(1) Chapter 31.08 RCW was repealed by 1991 c 208
§ 24, effective January 1, 1993.
**(2) The "small loan act" was redesignated as the "consumer finance
act" by 1979 c 18.
(2004 Ed.)
Alien Insurers
Chapter 48.35
Chapter 48.35 RCW
ALIEN INSURERS
Sections
48.35.010
48.35.020
48.35.030
48.35.040
48.35.050
48.35.060
48.35.070
48.35.080
48.35.090
48.35.100
48.35.110
48.35.120
48.35.130
48.35.140
48.35.150
48.35.160
48.35.170
48.35.180
48.35.190
48.35.200
Application—Definition.
Deposit required—Amount.
Deposit required—Duration.
Trusts created before May 17, 1991.
Alien insurer—State authorization required.
Trusteed assets—Creation—Commissioner's approval of trust
agreement.
Trust agreement—Amendment.
Trust agreement—Withdrawal of commissioner's approval.
Trust agreement—Vesting of trusteed assets.
Trusteed assets—Trustee's records.
Trusteed assets—Trustee's statements—Commissioner's
approval.
Trusteed assets—Examination—Commissioner's approval of
assignment or transfer.
Trusteed assets—Commissioner's approval of withdrawals.
Trusteed assets—Substitution of trustee.
Trusteed assets—Compensation and expenses of trustees.
United States manager—Mexican or Canadian insurers.
Domestication of alien insurer—Commissioner's approval.
Domestication agreement—Necessary authorization.
Domestication agreement—Commissioner's approval of corporate proceedings.
Domestication—When effective—Deposits—Transfer of
assets.
48.35.010
48.35.010 Application—Definition. This chapter
applies to all alien insurers using this state as a state of entry
to transact insurance in the United States.
For the purposes of this chapter, "alien insurer" has the
definition supplied in RCW 48.05.010. [1991 c 268 § 1.]
48.35.110
48.35.040
48.35.040 Trusts created before May 17, 1991. All
trusts of trusteed assets created before May 17, 1991, must be
continued under the instruments creating those trusts. If the
commissioner determines that the instruments are inconsistent with the provisions of this chapter, the insurer shall correct those inconsistencies within six months of the commissioner's determination. [1991 c 268 § 3.]
48.35.050
48.35.050 Alien insurer—State authorization
required. An alien insurer proposing to use this state as a
state of entry to transact insurance in the United States, must
be authorized to transact insurance in this state and may make
and execute any trust agreement required by this chapter.
[1991 c 268 § 6.]
48.35.060
48.35.060 Trusteed assets—Creation—Commissioner's approval of trust agreement. (1) The alien insurer
shall create the trusteed assets required by this chapter under
a written trust agreement between the insurer and the trustee,
consistent with the provisions of this chapter, and in such
form and manner as the commissioner may designate or
approve.
(2) The agreement is effective when filed with and
approved in writing by the commissioner. The commissioner
shall not approve any trust agreement not found to be in compliance with state or federal law or the terms of which do not
in fact provide reasonably adequate protection for the
insurer's policyholders or creditors, or both, in the United
States. [1991 c 268 § 5.]
48.35.070
48.35.020
48.35.020 Deposit required—Amount. (1) An alien
insurer may use this state as a state of entry to transact insurance in the United States by maintaining in this state a deposit
of assets in a solvent trust company or other solvent financial
institution having trust powers domiciled in this state and so
designated by the commissioner. The commissioner's designated depositories are authorized to receive and hold a
deposit of assets. A deposit so held is at the expense of the
insurer. A solvent financial institution domiciled in this state,
the deposits of which are insured by the federal deposit insurance corporation and which is a member of the federal
reserve system, may be designated as the commissioner's
depository to receive and hold a deposit of assets.
(2) The deposit, together with other trust deposits of the
insurer held in the United States for the same purpose, must
be in an amount not less than the higher of deposits required
of an alien insurer under RCW 48.05.090 or five hundred
thousand dollars and consist of eligible assets as set forth in
RCW 48.16.030.
(3) The deposit may be referred to as "trusteed assets."
[1991 c 268 § 2.]
48.35.030
48.35.030 Deposit required—Duration. The deposit
required by this chapter must be for the benefit, security, and
protection of the policyholders or creditors, or both, of the
insurer in the United States. It shall be maintained as long as
there is outstanding any liability of the insurer arising out of
its insurance transactions in the United States. [1991 c 268 §
4.]
(2004 Ed.)
48.35.070 Trust agreement—Amendment. A trust
agreement may be amended. However, the amendment is not
effective until filed with the commissioner and the commissioner finds and states in writing that the amendment is in
compliance with this chapter. [1991 c 268 § 7.]
48.35.080
48.35.080 Trust agreement—Withdrawal of commissioner's approval. The commissioner may withdraw his or
her approval of a trust agreement, or of an amendment to the
agreement, if the commissioner determines that the requisites
for the approval no longer exist. The determination shall be
made after notice and a hearing as provided in chapter 48.04
RCW. [1991 c 268 § 8.]
48.35.090
48.35.090 Trust agreement—Vesting of trusteed
assets. The trust agreement must provide that title to the
trusteed assets vests and remains vested in the trustees and
their successors for the purposes of the trust deposit. [1991 c
268 § 9.]
48.35.100
48.35.100 Trusteed assets—Trustee's records. The
trustee shall keep the trusteed assets separate from other
assets and shall maintain a record sufficient to identify the
trusteed assets at all times. [1991 c 268 § 10.]
48.35.110
48.35.110 Trusteed assets—Trustee's statements—
Commissioner's approval. (1) The trustee of trusteed assets
shall file statements with the commissioner, in a form
required by the commissioner, certifying the character and
amount of the assets.
[Title 48 RCW—page 233]
48.35.120
Title 48 RCW: Insurance
(2) If the trustee fails to file a requested statement after a
reasonable time has expired, the commissioner may suspend
or revoke the certificate of authority of the insurer required
under RCW 48.05.030. [1991 c 268 § 11.]
48.35.120
48.35.120 Trusteed assets—Examination—Commissioner's approval of assignment or transfer. (1) The commissioner may examine trusteed assets of any insurer at any
time in accordance with the same conditions and procedures
governing the examination of insurers provided in chapter
48.03 RCW.
(2) The depositing insurer shall not assign or transfer,
voluntarily, involuntarily, or by operation of law, all or a part
of its interest in the trusteed assets without the prior written
approval of the commissioner, and a transfer or assignment
occurring without approval is void. The assignee or transferee of the trusteed assets shall irrevocably and automatically assume all of the obligations and liabilities of the
assignor or transferor. [1991 c 268 § 12.]
48.35.130
48.35.130 Trusteed asset s—Commissioner's
approval of withdrawals. (1) The trust agreement must provide that the commissioner shall authorize and approve in
writing all withdrawals of trusteed assets in advance except
as follows:
(a) Any or all income, earnings, dividends, or interest
accumulations of the trusteed assets may be paid over to the
United States manager of the insurer upon request of the
insurer or the manager;
(b) Withdrawals coincident with substitutions of securities or assets that are at least equal in value to those being
withdrawn, if the substituted securities or assets would be eligible for investment by domestic insurers, and the insurer's
United States manager requests the withdrawal in writing
under a general or specific written authority previously given
or delegated by the insurer's board of directors, or other similar governing body, and a copy of such authority has been
filed with the trustee;
(c) For the purpose of making deposits required by
another state in which the insurer is, or becomes, an authorized insurer and for the protection of the insurer's policyholders or creditors, or both, in the state or United States, if
the withdrawal does not reduce the insurer's deposit in this
state to an amount less than the minimum deposit required.
The trustee shall transfer any assets withdrawn and in the
amount required to be deposited in the other state, directly to
the depositary required to receive the deposit as certified in
writing by the public official having supervision of insurance
in that state; and
(d) For the purpose of transferring the trusteed assets to
an official liquidator, conservator, or rehabilitator under an
order of a court of competent jurisdiction.
(2) The commissioner shall authorize a withdrawal of
only those assets that are in excess of the amount of assets
required to be held in trust, or as may otherwise be consistent
with the provisions of this chapter.
(3) If at any time the insurer becomes insolvent or if its
assets held in the United States are less than required as determined by the commissioner, the commissioner shall order in
writing the trustee to suspend the withdrawal of assets until a
[Title 48 RCW—page 234]
further order of the commissioner releasing the assets. [1991
c 268 § 13.]
48.35.140
48.35.140 Trusteed assets—Substitution of trustee.
A new trustee may be substituted for the original trustee of
trusteed assets in the event of a vacancy or for other proper
cause. Any such substitution is subject to the commissioner's
approval. [1991 c 268 § 14.]
48.35.150
48.35.150 Trusteed assets—Compensation and
expenses of trustees. The insurer shall provide for the compensation and expenses of the trustees of assets of an alien
insurer under this chapter in an amount, or on a basis, as
agreed upon by the insurer and the trustees in the trust agreement, subject to the prior approval of the commissioner.
[1991 c 268 § 15.]
48.35.160
48.35.160 United States manager—Mexican or
Canadian insurers. The provisions of this chapter applicable to a United States manager shall, in the case of insurers
domiciled in Mexico or Canada, be deemed to refer to the
president, vice-president, secretary, or treasurer of the Mexican or Canadian insurer. [1991 c 268 § 16.]
48.35.170
48.35.170 Domestication of alien insurer—Commissioner's approval. (1) Upon compliance with this chapter,
an alien insurer authorized to do business in this state may,
with the prior written approval of the commissioner, domesticate its United States branch by entering into an agreement
in writing with a domestic insurer providing for the acquisition by the domestic insurer of all of the assets and the
assumption of all of the liabilities of the United States branch.
(2) The acquisition of assets and assumption of liabilities
of the United States branch by the domestic insurer is
effected by filing with the commissioner an instrument or
instruments of transfer and assumption in form satisfactory to
the commissioner and executed by the alien insurer and the
domestic insurer. [1991 c 268 § 17.]
48.35.180
48.35.180 Domestication agreement—Necessary
authorization. (1) The domestication agreement shall be
authorized, adopted, approved, signed, and acknowledged by
the alien insurer in accordance with the laws of the country
under which it is organized.
(2) In the case of a domestic insurer, the domestication
agreement shall be approved, adopted, and authorized by its
board of directors and executed by its president or a vicepresident and attested by its secretary or assistant secretary
under its corporate seal. [1991 c 268 § 18.]
48.35.190
48.35.190 Domestication agreement—Commissioner's approval of corporate proceedings. An executed
counterpart of the domestication agreement, together with
certified copies of the corporate proceedings of the domestic
insurer and the alien insurer, approving, adopting, and authorizing the execution of the domestication agreement, shall be
submitted to the commissioner for approval. The commissioner shall thereupon consider the agreement, and, if the
commissioner finds that the same is in accordance with the
provisions hereof and that the interests of the policyholders
(2004 Ed.)
Fraternal Benefit Societies
of the United States branch of the alien insurer and of the
domestic insurer are not materially adversely affected, the
commissioner shall approve the domestication agreement
and authorize the consummation thereof. [1991 c 268 § 19.]
48.35.200 Domestication—When effective—Deposits—Transfer of assets. (1) Upon the filing with the commissioner of a certified copy of the instrument of transfer and
assumption pursuant to which a domestic company succeeds
to the business and assets of the United States branch of an
alien insurer and assumes all its liabilities, the domestication
of the United States branch is deemed effective; and all the
rights, franchises, and interests of the United States branch in
and to every species of property and things, in actions thereunder belonging, are deemed as transferred to and vested in
the domestic insurer, and simultaneously the domestic
insurer is deemed to have assumed all of the liabilities of the
United States branch. The domestic insurer is considered as
having the age as the oldest of the two parties to the domestication agreement for purposes of laws relating to age of company.
(2) All deposits of the United States branch held by the
commissioner, or by state officers, or other state regulatory
agencies pursuant to requirements of state laws, are deemed
to be held as security for the satisfaction by the domestic
insurer of all liabilities to policyholders within the United
States assumed from the United States branch; and the deposits are deemed to be assets of the domestic insurer and are
reported as such in the annual financial statements and other
reports that the domestic insurer may be required to file.
Upon the ultimate release by a state officer or agency of a
deposit, the securities and cash constituting the released
deposit is delivered and paid over to the domestic insurer as
the lawful successor in interest to the United States branch.
(3) Contemporaneously with the consummation of the
domestication of the United States branch, the commissioner
shall direct the trustee, if any, of the United States branch's
trusteed assets, as set forth in RCW 48.35.020, to transfer and
deliver to the domestic insurer all assets, if any, held by such
trustee. [1991 c 268 § 20.]
48.35.200
48.36A.180
48.36A.190
48.36A.200
48.36A.210
48.36A.220
48.36A.230
48.36A.240
48.36A.250
48.36A.260
48.36A.263
48.36A.270
48.36A.272
48.36A.274
48.36A.276
48.36A.278
48.36A.280
48.36A.282
48.36A.284
48.36A.286
48.36A.290
48.36A.310
48.36A.320
48.36A.330
48.36A.340
48.36A.350
48.36A.360
48.36A.370
48.36A.380
48.36A.390
48.36A.400
48.36A.410
48.36A.900
48.36A.901
48.36A.030
Protection of benefits.
Benefit certificates—Impaired reserves.
Paid-up nonforfeiture benefits and cash surrender values.
Authorized investments.
Assets—Investment and disbursement.
Chapter exclusive.
Funds tax exempt, exception.
Valuation standards—Reserves.
Annual financial statement.
Filing of financial statements.
Licenses and renewals—Fees—Existing societies.
Notice of intent to suspend, revoke, or refuse to renew a
license.
Duration of suspension.
Reauthorization of license.
Notice to agents of loss of authority.
Examinations.
Transactions hazardous to certificate holders or creditors—
Standards for consideration.
Determination of financial condition—Hazardous to certificate holders—Commissioner's order—Hearing.
Rehabilitation, liquidation, or conservation of society—
Same as insurance companies—Priority of distribution of
claims.
License required—Obtaining.
Deficiencies, noncompliance by societies—Actions against
license.
Requirements for injunction.
Agents.
Unfair trade practices.
Service of process upon commissioner.
Penalties.
Exemptions.
World War I societies.
Fraternal mutual insurers.
Fraternal mutual life insurers.
Review of commissioner's decisions and findings.
Severability—1987 c 366.
Effective date—1987 c 366.
48.36A.010
48.36A.010 Fraternal benefit society defined. Any
incorporated society, order, or supreme lodge, without capital
stock, including one exempted under the provisions of RCW
48.36A.370(1)(b) whether incorporated or not, conducted
solely for the benefit of its members and their beneficiaries
and not for profit, operated on a lodge system with ritualistic
form of work, having a representative form of government,
and which provides benefits in accordance with this chapter,
is hereby declared to be a fraternal benefit society. [1987 c
366 § 1.]
48.36A.020
Chapter 48.36A
Chapter 48.36A RCW
FRATERNAL BENEFIT SOCIETIES
Sections
48.36A.010
48.36A.020
48.36A.030
48.36A.040
48.36A.050
48.36A.060
48.36A.070
48.36A.080
48.36A.090
48.36A.100
48.36A.110
48.36A.120
48.36A.130
48.36A.140
48.36A.150
48.36A.160
48.36A.170
(2004 Ed.)
Fraternal benefit society defined.
Lodge system—Lodges for children.
Representative form of government.
Definitions.
Beneficial operations—Laws and rules.
Membership classes, rights, grievances.
Location of office and meetings—Official publications,
annual statement.
Immunity of officers—Indemnification of person responsible—Insurance for liability.
Nonwaiver provisions.
Formation of domestic society—Procedures and requirements.
Amendment of society's laws.
Not-for-profit institutions authorized—Funeral homes prohibited.
Reinsurance.
Consolidation and merger.
Conversion to mutual life insurance company.
Contractual benefits.
Designation of beneficiary—Funeral benefits.
48.36A.020 Lodge system—Lodges for children. (1)
A society is operating on the lodge system if it has a supreme
governing body and subordinate lodges into which members
are elected, initiated, or admitted in accordance with its laws,
rules, and ritual. Subordinate lodges shall be required by the
laws of the society to hold regular meetings at least once in
each month in furtherance of the purposes of the society.
(2) A society may, at its option, organize and operate
lodges for children under the minimum age for adult membership. Membership and initiation in local lodges shall not
be required of the children, nor shall they have a voice or vote
in the management of the society. [1987 c 366 § 2.]
48.36A.030
48.36A.030 Representative form of government. A
society has a representative form of government when:
(1) It has a supreme governing body constituted in one of
the following ways:
(a) The supreme governing body is an assembly composed of delegates elected directly by the members or at
intermediate assemblies or conventions of members or their
[Title 48 RCW—page 235]
48.36A.040
Title 48 RCW: Insurance
representatives, together with other delegates as may be prescribed in the society's laws. A society may provide for election of delegates by mail. The elected delegates shall constitute a majority in number and shall not have less than twothirds of the votes and not less than the number of votes
required to amend the society's laws. The assembly shall be
elected and shall meet at least once every four years and shall
elect a board of directors to conduct the business of the society between meetings of the assembly. Vacancies on the
board of directors between elections may be filled in the manner prescribed by the society's laws; or
(b) The supreme governing body is a board composed of
persons elected by the members, either directly or by their
representatives in intermediate assemblies, and any other persons prescribed in the society's laws. A society may provide
for election of the board by mail. Each term of a board member may not exceed four years. Vacancies on the board
between elections may be filled in the manner prescribed by
the society's laws. Those persons elected to the board shall
constitute a majority in number and not less than the number
of votes required to amend the society's laws. A person filling
the unexpired term of an elected board member shall be considered to be an elected member. The board shall meet at least
quarterly to conduct the business of the society;
(2) The officers of the society are elected either by the
supreme governing body or by the board of directors;
(3) Only benefit members are eligible for election to the
supreme governing body and the board of directors; and
(4) Each voting member shall have one vote. No vote
may be cast by proxy. [1987 c 366 § 3.]
48.36A.040
48.36A.040 Definitions. As used in this chapter, the
following terms have the meanings indicated unless the context clearly requires otherwise:
(1) "Benefit contract" means the agreement for provision
of benefits authorized by RCW 48.36A.160, as that agreement is described in RCW 48.36A.190(1).
(2) "Benefit member" means an adult member who is
designated by the laws or rules of the society to be a benefit
member under a benefit contract.
(3) "Certificate" means the document issued as written
evidence of the benefit contract.
(4) "Premiums" means premiums, rates, dues or other
required contributions by whatever name known, which are
payable under the certificate.
(5) "Laws" means the society's articles of incorporation,
constitution, and bylaws, however designated.
(6) "Rules" means all rules, regulations, or resolutions
adopted by the supreme governing body or board of directors
which are intended to have general application to the members of the society.
(7) "Society" means fraternal benefit society, unless otherwise indicated.
(8) "Lodge" means subordinate member units of the
society, known as camps, courts, councils, branches, or by
any other designation. [1987 c 366 § 4.]
48.36A.050
48.36A.050 Beneficial operations—Laws and rules.
(1) A society shall operate for the benefit of members and
their beneficiaries by:
[Title 48 RCW—page 236]
(a) Providing benefits as specified in RCW 48.36A.160;
and
(b) Operating for one or more social, intellectual, educational, charitable, benevolent, moral, fraternal, patriotic, or
religious purposes for the benefit of its members, which may
also be extended to others.
These purposes may be carried out directly by the society, or indirectly through subsidiary corporations or affiliated
organizations.
(2) Every society may adopt laws and rules for the government of the society, the admission of its members, and the
management of its affairs. It may change, alter, add to, or
amend such laws and rules and has such other powers as are
necessary and incidental to carrying into effect the objects
and purposes of the society. [1987 c 366 § 5.]
48.36A.060
48.36A.060 Membership classes, rights, grievances.
(1) A society shall specify in its laws or rules:
(a) Eligibility standards for each and every class of membership, provided that if benefits are provided on the lives of
children, the minimum age for adult membership shall be set
at not less than age fifteen and not greater than age twentyone;
(b) The process for admission to membership for each
membership class; and
(c) The rights and privileges of each membership class,
provided that only benefit members shall have the right to
vote on the management of the insurance affairs of the society.
(2) A society may also admit social members who have
no voice or vote in the management of the insurance affairs of
the society.
(3) Membership rights in the society are personal to the
member and are not assignable.
(4) A society may provide in its laws or rules for grievance or complaint procedures for members. [1987 c 366 § 6.]
48.36A.070
48.36A.070 Location of office and meetings—Official
publications, annual statement. (1) The principal office of
any domestic society shall be located in this state. The meetings of its supreme governing body may be held in any state,
district, province, or territory where the society has at least
one subordinate lodge, or in such other location as determined by the supreme governing body, and all business transacted at the meetings is as valid in all respects as if the meetings were held in this state. The minutes of the proceedings of
the supreme governing body and of the board of directors
shall be in the English language.
(2) (a) A society may provide in its laws for an official
publication in which any notice, report, or statement required
by law to be given to members, including notice of election,
may be published. Required reports, notices, and statements
shall be printed conspicuously in the publication. If the
records of a society show that two or more members have the
same mailing address, an official publication mailed to one
member is deemed to be mailed to all members at the same
address unless a member requests a separate copy.
(b) Not later than June 1st of each year, a synopsis of the
society's annual statement providing an explanation of the
facts concerning the condition of the society thereby dis(2004 Ed.)
Fraternal Benefit Societies
closed shall be printed and mailed to each benefit member of
the society or, in lieu thereof, the synopsis may be published
in the society's official publication. [1987 c 366 § 7.]
48.36A.100
authority to waive any of the provisions of the laws of the
society. Such provision shall be binding on the society and
every member and beneficiary of a member. [1987 c 366 §
9.]
48.36A.080
48.36A.080 Immunity of officers—Indemnification
of person responsible—Insurance for liability. (1) The
officers and members of the supreme governing body or any
subordinate body of a society shall not be personally liable
for any benefits provided by a society.
(2) Any person may be indemnified and reimbursed by
any society for expenses reasonably incurred by, and liabilities imposed upon, the person in connection with or arising
out of any action, suit, or proceeding, whether civil, criminal,
administrative, or investigative, or threat thereof, in which
the person may be involved by reason of the fact that the person is or was a director, officer, employee, or agent of the
society or of any firm, corporation, or organization which the
person served in any capacity at the request of the society. A
person shall not be so indemnified or reimbursed (a) in relation to any matter in such action, suit, or proceeding as to
which the person shall finally be adjudged to be or have been
guilty of breach of a duty as a director, officer, employee, or
agent of the society; or (b) in relation to any matter in the
action, suit, or proceeding, or threat thereof, which has been
made the subject of a compromise settlement; unless in either
case the person acted in good faith for a purpose the person
reasonably believed to be in or not opposed to the best interests of the society and, in a criminal action or proceeding, in
addition, had no reasonable cause to believe that their conduct was unlawful. The determination whether the conduct of
the person met the standard required in order to justify
indemnification and reimbursement in relation to any matter
described in (a) or (b) of this subsection may only be made by
the supreme governing body or board of directors by a majority vote of a quorum consisting of persons who were not parties to the action, suit, or proceeding or by a court of competent jurisdiction. The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a
plea of no contest, as to the person shall not in itself create a
conclusive presumption that the person did not meet the standard of conduct required in order to justify indemnification
and reimbursement. The foregoing right of indemnification
and reimbursement shall not be exclusive of other rights to
which the person may be entitled as a matter of law and shall
inure to the benefit of the person's heirs, executors, and
administrators.
(3) A society may purchase and maintain insurance on
behalf of any person who is or was a director, officer,
employee, or agent of the society, or who is or was serving at
the request of the society as a director, officer, employee, or
agent of any other firm, corporation, or organization against
any liability asserted against the person and incurred by the
person in any capacity or arising out of the person's status as
such, whether or not the society would have the power to
indemnify the person against the liability under this section.
[1987 c 366 § 8.]
48.36A.090
48.36A.090 Nonwaiver provisions. The laws of the
society may provide that no subordinate body, nor any of its
subordinate officers or members shall have the power or
(2004 Ed.)
48.36A.100 Formation of domestic society—Procedures and requirements. A domestic society organized on
or after January 1, 1988, shall be formed as follows, but not
until it has and continues to maintain unimpaired surplus in
the minimum amount of total capital and surplus required by
RCW 48.05.340:
(1) Seven or more citizens of the United States, a majority of whom are citizens of this state, who desire to form a fraternal benefit society, may make, sign, and acknowledge
before some officer competent to take acknowledgment of
deeds, articles of incorporation, in which shall be stated:
(a) The proposed corporate name of the society, which
shall not so closely resemble the name of any society or
insurance company as to be misleading or confusing;
(b) The purposes for which it is being formed and the
mode in which its corporate powers are to be exercised. The
purposes shall not include more liberal powers than are
granted by this chapter;
(c) The names and residences of the incorporators and
the names, residences, and official titles of all the officers,
trustees, directors, or other persons who are to have and exercise the general control of the management of the affairs and
funds of the society for the first year or until the ensuing election at which all the officers shall be elected by the supreme
governing body, which election shall be held not later than
one year from the date of issuance of the permanent certificate of authority.
(2) The articles of incorporation, duly certified copies of
the society's bylaws and rules, copies of all proposed forms of
certificates, applications therefor, and circulars to be issued
by the society, and a bond conditioned upon the return to
applicants of the advanced payments if the organization is not
completed within one year shall be filed with the commissioner, who may require further information as the commissioner deems necessary. The bond with sureties approved by
the commissioner shall be in an amount, not less than three
hundred thousand dollars nor more than one million five hundred thousand dollars as required by the commissioner. All
documents filed are to be in the English language. If the purposes of the society conform to the requirements of this chapter and all provisions of the law have been complied with, the
commissioner shall so certify, retain, and file the articles of
incorporation and furnish the incorporators a preliminary certificate of authority authorizing the society to solicit members
as hereinafter provided.
(3) No preliminary certificate of authority granted under
the provisions of this section shall be valid after one year
from its date or after a further period, not exceeding one year,
as may be authorized by the commissioner upon cause
shown, unless the five hundred applicants required by subsection (4) of this section have been secured and the organization has been completed under this chapter. The articles of
incorporation and all other proceedings thereunder shall
become null and void in one year from the date of the preliminary certificate of authority, or at the expiration of the
extended period, unless the society shall have completed its
48.36A.100
[Title 48 RCW—page 237]
48.36A.110
Title 48 RCW: Insurance
organization and received a certificate of authority to do business under this chapter.
(4) Upon receipt of a preliminary certificate of authority
from the commissioner, the society may solicit members for
the purpose of completing its organization, shall collect from
each applicant the amount of not less than one regular
monthly premium in accordance with its table of rates, and
shall issue to each applicant a receipt for the amount collected. No society shall incur any liability other than for the
return of the advance premium, nor issue any certificate, nor
pay, allow, or offer or promise to pay or allow, any benefit to
any person until:
(a) Actual bona fide applications for benefits have been
secured on not less than five hundred applicants, and any necessary evidence of insurability has been furnished to and
approved by the society;
(b) At least ten subordinate lodges have been established
into which the five hundred applicants have been admitted;
(c) There has been submitted to the commissioner, under
oath of the president or secretary, or corresponding officer of
the society, a list of the applicants, giving their names,
addresses, date each was admitted, name and number of the
subordinate lodge of which each applicant is a member,
amount of benefits to be granted, and premiums therefor; and
(d) It has been shown to the commissioner, by sworn
statement of the treasurer, or corresponding officer of the
society, that at least five hundred applicants have each paid in
cash at least one regular monthly premium and the total
amount of collected premiums equals at least one hundred
fifty thousand dollars. The advance premiums shall be held in
trust during the period of organization and if the society has
not qualified for a certificate of authority within one year, the
premiums shall be returned to the applicants.
(5) The commissioner may make such examination and
require such further information as the commissioner deems
advisable. Upon presentation of satisfactory evidence that the
society has complied with all the provisions of this chapter,
the commissioner shall issue to the society a certificate of
authority to that effect and that the society is authorized to
transact business pursuant to the provisions of this chapter.
The certificate of authority shall be prima facie evidence of
the existence of the society at the date of the certificate. The
commissioner shall cause a record of the certificate of authority to be made. A certified copy of the record may be given in
evidence with like effect as the original certificate of authority.
(6) Any incorporated society authorized to transact business in this state at the time this chapter becomes effective
shall not be required to reincorporate.
(7) The commissioner may, by rule, require domestic
fraternal societies to have and maintain a larger amount of
surplus than the minimum amount of capital and surplus prescribed under RCW 48.05.340, based upon the type, volume,
and nature of insurance business transacted, consistent with
the principles of risk-based capital modified to recognize the
special characteristics of fraternal benefit societies. [1996 c
236 § 1; 1987 c 366 § 10.]
48.36A.110
48.36A.110 Amendment of society's laws. (1) A
domestic society may amend its laws in accordance with the
provisions thereof by action of its supreme governing body at
[Title 48 RCW—page 238]
any regular or special meeting thereof or, if its laws so provide, by referendum. The referendum may be held in accordance with the provisions of its laws by the vote of the voting
members of the society, by the vote of delegates or representatives of voting members, or by the vote of local lodges. A
society may provide for voting by mail. No amendment submitted for adoption by referendum shall be adopted unless,
within six months from the date of submission, a majority of
the members voting shall have signified their consent to the
amendment by one of the specified methods.
(2) No amendment to the laws of any domestic society
shall take effect unless approved by the commissioner. The
commissioner shall approve the amendment if the commissioner finds that it has been duly adopted and is not inconsistent with any requirement of the laws of this state or with the
character, objects, and purposes of the society. Unless the
commissioner disapproves any amendment within sixty days
after the filing of same, the amendment shall be considered
approved. The approval or disapproval by the commissioner
shall be in writing and mailed to the secretary or corresponding officer of the society at its principal office. In case the
commissioner disapproves the amendment, the reasons for
the disapproval shall be stated in the written notice.
(3) Within ninety days from the approval by the commissioner, all amendments, or a synopsis thereof, shall be furnished to all members of the society either by mail or by publication in full in the official publication of the society. The
affidavit of any officer of the society or of anyone authorized
by it to mail any amendments or synopsis thereof, stating
facts which show that same have been duly addressed and
mailed, shall be prima facie evidence that the amendments or
synopsis thereof, have been furnished to the addressee.
(4) Every foreign or alien society authorized to do business in this state shall file with the commissioner a certified
copy of all amendments of, or additions to, its laws within
ninety days after their enactment.
(5) Printed copies of the laws as amended, certified by
the secretary or corresponding officer of the society, shall be
prima facie evidence of their legal adoption. [1987 c 366 §
11.]
48.36A.120
48.36A.120 Not-for-profit institutions authorized—
Funeral homes prohibited. (1) A society may create, maintain, and operate, or establish organizations to operate, notfor-profit institutions to further the purposes permitted by
RCW 48.36A.050(1)(b). The institutions may furnish services free or at a reasonable charge. Any real or personal
property owned, held or leased by the society for this purpose
shall be reported in every annual statement.
(2) No society shall own or operate funeral homes or
undertaking establishments. [1987 c 366 § 12.]
48.36A.130
48.36A.130 Reinsurance. (1) A domestic society may,
by a reinsurance agreement, transfer any individual risk or
risks in whole or in part to an insurer, other than another fraternal benefit society, having the power to make such reinsurance and authorized to do business in this state, or if not so
authorized, one which is approved by the commissioner, but
no domestic society may reinsure substantially all of its
insurance in force without the written permission of the com(2004 Ed.)
Fraternal Benefit Societies
missioner. It may take credit for the reserves on the transferred risks to the extent reinsured, but no credit shall be
allowed as an admitted asset or as a deduction from liability,
to a transferring society for reinsurance made, transferred,
renewed, or otherwise becoming effective after January 1,
1988, unless the reinsurance is payable by the assuming
insurer on the basis of the liability of the transferring society
under the contract or contracts reinsured without diminution
because of the insolvency of the transferring society.
(2) Notwithstanding the limitation in subsection (1) of
this section, a society may reinsure the risks of another society in a consolidation or merger approved by the commissioner under RCW 48.36A.140. [1987 c 366 § 13.]
48.36A.140 Consolidation and merger. (1) A domestic society may consolidate or merge with any other society
by complying with the provisions of this section. It shall file
with the commissioner:
(a) A certified copy of the written contract containing in
full the terms and conditions of the consolidation or merger;
(b) A sworn statement by the president and secretary or
corresponding officers of each society showing their financial condition on a date fixed by the commissioner but not
earlier than December 31st next preceding the date of the
contract;
(c) A certificate of the officers, duly verified by their
respective oaths, that the consolidation or merger has been
approved by a two-thirds vote of the supreme governing body
of each society, such vote being conducted at a regular or special meeting of each such body, or, if the society's laws so
permit, by mail; and
(d) Evidence that at least sixty days prior to the action of
the supreme governing body of each society, the text of the
contract has been furnished to all members of each society
either by mail or by publication in full in the official publication of each society.
(2) If the commissioner finds that the contract is in conformity with the provisions of this section, that the financial
statements are correct, and that the consolidation or merger is
just and equitable to the members of each society, the commissioner shall approve the contract and issue a certificate to
that effect. Upon approval, the contract shall be in full force
and effect unless any society which is a party to the contract
is incorporated under the laws of any other state or territory.
In such event, the consolidation or merger shall not become
effective unless and until it has been approved as provided by
the laws of such state or territory and a certificate of such
approval is filed with the commissioner of this state or, if the
laws of the state or territory contain no such provision, then
the consolidation or merger shall not become effective unless
and until it has been approved by the commissioner of insurance of the state or territory and a certificate of such approval
is filed with the commissioner of this state.
(3) Upon the consolidation or merger becoming effective, all the rights, franchises, and interests of the consolidated or merged societies in and to every species of property,
real, personal, or mixed, and things in action thereunto
belonging shall be vested in the society resulting from or
remaining after the consolidation or merger without any other
instrument, except that conveyances of real property may be
evidenced by proper deeds, and the title to any real estate or
48.36A.140
(2004 Ed.)
48.36A.170
interest therein, vested under the laws of this state in any of
the societies consolidated or merged, shall not revert or be in
any way impaired by reason of the consolidation or merger,
but shall vest absolutely in the society resulting from or
remaining after the consolidation or merger.
(4) The affidavit of any officer of the society or of anyone authorized by it to mail any notice or document, stating
that the notice or document has been duly addressed and
mailed, shall be prima facie evidence that the notice or document has been furnished to the addressees. [1987 c 366 § 14.]
48.36A.150
48.36A.150 Conversion to mutual life insurance company. Any domestic fraternal benefit society may be converted and licensed as a mutual life insurance company by
compliance with all the requirements of the insurance laws of
this state for mutual life insurance companies. A plan of conversion shall be prepared in writing by the board of directors
setting forth in full the terms and conditions of conversion.
The affirmative vote of two-thirds of all members of the
supreme governing body at a regular or special meeting shall
be necessary for the approval of such plan, or if the society is
organized under the direct election method pursuant to RCW
48.36A.030(1)(b), the plan of conversion shall be submitted
by mail to the benefit members or the plan may be published
in the official publication authorized by RCW
48.36A.070(2)(a). The affirmative vote of two-thirds of the
benefit members voting thereon shall be necessary for the
approval of the plan. No conversion shall take effect unless
and until approved by the commissioner who may give
approval if the commissioner finds that the proposed change
is in conformity with the requirements of law and not prejudicial to the certificate holders of the society. [1987 c 366 §
15.]
48.36A.160
48.36A.160 Contractual benefits. (1) A society may
provide the following contractual benefits in any form:
(a) Death benefits;
(b) Endowment benefits;
(c) Annuity benefits;
(d) Temporary or permanent disability benefits;
(e) Hospital, medical, or nursing benefits;
(f) Monument or tombstone benefits to the memory of
deceased members; and
(g) Such other benefits as authorized for life insurers and
which are not inconsistent with this chapter.
(2) A society shall specify in its rules those persons who
may be issued, or covered by, the contractual benefits in subsection (1) of this section, consistent with providing benefits
to members and their dependents. A society may provide
benefits on the lives of children under the minimum age for
adult membership upon application of an adult person. [1987
c 366 § 16.]
48.36A.170
48.36A.170 Designation of beneficiary—Funeral
benefits. (1) The owner of a benefit contract shall have the
right at all times to change the beneficiary or beneficiaries in
accordance with the laws or rules of the society unless the
owner waives this right by specifically requesting in writing
that the beneficiary designation be irrevocable. A society
may, through its laws or rules, limit the scope of beneficiary
[Title 48 RCW—page 239]
48.36A.180
Title 48 RCW: Insurance
designations and shall provide that no revocable beneficiary
shall have or obtain any vested interest in the proceeds of any
certificate until the certificate has become due and payable in
conformity with the provisions of the benefit contract.
(2) A society may make provision for the payment of
funeral benefits to the extent of such portion of any payment
under a certificate as might reasonably appear to be due to
any person equitably entitled thereto by reason of having
incurred expense occasioned by the burial of the member,
provided the portion paid shall not exceed the sum of one
thousand dollars.
(3) If, at the death of any person insured under a benefit
contract, there is no lawful beneficiary to whom the proceeds
shall be payable, the amount of the benefit, except to the
extent that funeral benefits may be paid under this section,
shall be payable to the personal representative of the
deceased insured, provided that if the owner of the certificate
is other than the insured, the proceeds shall be payable to the
owner. [1987 c 366 § 17.]
48.36A.180
48.36A.180 Protection of benefits. No money or other
benefit, charity, relief, or aid to be paid, provided or rendered
by any society, shall be liable to attachment, garnishment, or
other process, or to be seized, taken, appropriated, or applied
by any legal or equitable process or operation of law to pay
any debt or liability of a member or beneficiary, or any other
person who may have a right thereunder, either before or
after payment by the society. [1987 c 366 § 18.]
48.36A.190
48.36A.190 Benefit certificates—Impaired reserves.
(1) Every society authorized to do business in this state shall
issue to each owner of a benefit contract a certificate specifying the amount of benefits provided. The certificate, together
with any riders or endorsements attached thereto, the laws of
the society, the application for membership, the application
for insurance and declaration of insurability, if any, signed by
the applicant, and all amendments, shall constitute the benefit
contract, as of the date of issuance, between the society and
the owner, and the certificate shall so state. A copy of the
application for insurance and declaration of insurability, if
any, shall be endorsed upon or attached to the certificate. All
statements on the application shall be representations and not
warranties. Any waiver of this provision shall be void.
(2) Except as provided in RCW 48.36A.220, any
changes, additions, or amendments to the laws of the society
duly made or enacted subsequent to the issuance of the certificate, shall bind the owner and the beneficiaries, and shall
govern and control the benefit contract in all respects the
same as though the changes, additions, or amendments had
been made prior to and were in force at the time of the application for insurance, except that no change, addition, or
amendment shall destroy or diminish benefits which the society contracted to give the owner as of the date of issuance.
(3) Any person upon whose life a benefit contract is
issued prior to attaining the age of majority shall be bound by
the terms of the application and certificate and by all the laws
and rules of the society to the same extent as though the age
of majority had been attained at the time of application.
(4) Except as provided in RCW 48.36A.220, a society
shall provide in its laws that if its reserves as to all or any
[Title 48 RCW—page 240]
class of certificates become impaired, its board of directors or
corresponding body may require that there shall be paid by
the owner to the society the amount of the owner's equitable
proportion of the deficiency as ascertained by its board, and
that if the payment is not made, either (a) it shall stand as an
indebtedness against the certificate and draw interest not to
exceed the rate specified for certificate loans under the certificates; or (b) in lieu of or in combination with (a) of this subsection, the owner may accept a proportionate reduction in
benefits under the certificate. The society may specify the
manner of the election and which alternative is to be presumed if no election is made.
(5) Copies of any of the documents mentioned in this
section, certified by the secretary or corresponding officer of
the society, shall be received in evidence of the terms and
conditions thereof.
(6) No certificate shall be delivered or issued for delivery
in this state unless a copy of the form has been filed with the
commissioner in the manner provided for like policies issued
by life insurers in this state. Every life, accident, health, or
disability insurance certificate and every annuity certificate
issued on or after one year from January 1, 1988, shall be
approved by the commissioner and shall meet the standard
contract provision requirements not inconsistent with this
chapter for like policies issued by life insurers in this state,
except that a society may provide for a grace period for payment of premiums of one full month in its certificates. The
certificates shall also contain a provision stating the amount
of premiums which are payable under the certificate and a
provision reciting or setting forth the substance of any sections of the society's laws or rules in force at the time of issuance of the certificate which, if violated, will result in the termination or reduction of benefits payable under the certificate. If the laws of the society provide for expulsion or
suspension of a member, the certificate shall also contain a
provision that any member so expelled or suspended, except
for nonpayment of a premium or within the contestable
period for material misrepresentation in the application for
membership or insurance, shall have the privilege of maintaining the certificate in force by continuing payment of the
required premium.
(7) Benefit contracts issued on the lives of persons below
the society's minimum age for adult membership may provide for transfer of control or ownership to the insured at an
age specified in the certificate. A society may require
approval of an application for membership in order to effect
this transfer, and may provide in all other respects for the regulation, government, and control of such certificates and all
rights, obligations, and liabilities incident thereto and connected therewith. Ownership rights prior to the transfer shall
be specified in the certificate.
(8) A society may specify the terms and conditions on
which benefit contracts may be assigned. [1987 c 366 § 19.]
48.36A.200
48.36A.200 Paid-up nonforfeiture benefits and cash
surrender values. (1) For certificates issued prior to one
year after January 1, 1988, the value of every paid-up nonforfeiture benefit and the amount of any cash surrender value,
loan, or other option granted shall comply with the provisions
of law applicable immediately prior to January 1, 1988.
(2004 Ed.)
Fraternal Benefit Societies
(2) For certificates issued on or after one year from January 1, 1988, for which reserves are computed on the commissioner's 1941 standard ordinary mortality table, the commissioner's 1941 standard industrial table or the commissioner's 1958 standard ordinary mortality table, or the
commissioner's 1980 standard mortality table, or any more
recent table made applicable to life insurers, every paid-up
nonforfeiture benefit and the amount of any cash surrender
value, loan, or other option granted shall not be less than the
corresponding amount ascertained in accordance with the
laws of this state applicable to life insurers issuing policies
containing like benefits based upon such tables.
(3) For annuity certificates issued on or after one year
from January 1, 1988, every paid-up nonforfeiture benefit
and the amount of any cash surrender value, loan, or other
option granted shall not be less than the corresponding
amount ascertained in accordance with the laws of this state
applicable to life insurers issuing annuities. [1987 c 366 §
20.]
48.36A.210
48.36A.210 Authorized investments. A society shall
invest its funds only in investments that are authorized by the
laws of this state for the investment of assets of life insurers
and subject to the limitations thereon. Any foreign or alien
society permitted or seeking to do business in this state which
invests its funds in accordance with the laws of the state, district, territory, country, or province in which it is incorporated, shall be deemed to have met the requirements of this
section for the investment of funds. [1987 c 366 § 21.]
48.36A.220
48.36A.220 Assets—Investment and disbursement.
(1) All assets shall be held, invested, and disbursed for the
use and benefit of the society and no member or beneficiary
shall have or acquire individual rights therein or become entitled to any apportionment on the surrender of any part
thereof, except as provided in the benefit contract.
(2) A society may create, maintain, invest, disburse, and
apply any special fund or funds necessary to carry out any
purpose permitted by the laws of the society.
(3) A society may, pursuant to resolution of its supreme
governing body, establish and operate one or more separate
accounts and issue contracts on a variable basis, subject to all
the provisions of law regulating life insurers establishing
such accounts and issuing such contracts, as provided in
chapter 48.18A RCW. To the extent the society deems it necessary in order to comply with any applicable federal or state
laws, or any rules issued thereunder, the society may adopt
special procedures for the conduct of the business and affairs
of a separate account, may, for persons having beneficial
interests therein, provide special voting and other rights,
including without limitation special rights and procedures
relating to investment policy, investment advisory services,
selection of certified public accountants, and selection of a
committee to manage the business and affairs of the account,
and may issue contracts on a variable basis to which RCW
48.36A.190 (2) and (4) shall not apply. [1987 c 366 § 22.]
48.36A.230
48.36A.230 Chapter exclusive. Societies shall be governed by this chapter and shall be exempt from all other provisions of the insurance laws of this state unless they are
(2004 Ed.)
48.36A.260
expressly designated therein, or unless it is specifically made
applicable by this chapter. [1987 c 366 § 23.]
48.36A.240
48.36A.240 Funds tax exempt, exception. Every society organized or licensed under this chapter is hereby
declared to be a charitable and benevolent institution, and all
of its funds shall be exempt from all and every state, county,
district, municipal, and school tax, other than taxes on real
estate and office equipment. [1987 c 366 § 24.]
48.36A.250
48.36A.250 Valuation standards—Reserves. (1)
Standards of valuation for certificates issued prior to one year
after January 1, 1988, shall be those provided by the laws
applicable immediately prior to January 1, 1988.
(2) The minimum standards of valuation for certificates
issued on or after one year from January 1, 1988, shall be
based on the following tables:
(a) For certificates of life insurance: The commissioner's
1941 standard ordinary mortality table, the commissioner's
1941 standard industrial mortality table, the commissioner's
1958 standard ordinary mortality table, the commissioner's
1980 standard ordinary mortality table, or any more recent
table made applicable to life insurers;
(b) For annuity and pure endowment certificates, for
total and permanent disability benefits, for accidental death
benefits, and for noncancellable accident and health benefits:
Such tables as are authorized for use by life insurers in this
state.
All of the above shall be under valuation methods and
standards, including interest assumptions, in accordance with
the laws of this state applicable to life insurers issuing policies containing like benefits.
(3) The commissioner may, in the commissioner's discretion, accept other standards for valuation if the commissioner finds that the reserves produced thereby will not be
less in the aggregate than reserves computed in accordance
with the minimum valuation standard herein prescribed. The
commissioner may, in the commissioner's discretion, vary
the standards of mortality applicable to all benefit contracts
on substandard lives or other extra hazardous lives by any
society authorized to do business in this state.
(4) Any society, with the consent of the commissioner of
insurance of the state of domicile of the society and under the
conditions, if any, which the commissioner may impose, may
establish and maintain reserves on its certificates in excess of
the reserves required by this section, but the contractual
rights of any benefit member shall not be affected thereby.
[1987 c 366 § 25.]
48.36A.260
48.36A.260 Annual financial statement. (1) Every
society transacting business in this state shall annually, on or
before the first day of March, unless for cause shown such
time has been extended by the commissioner, file with the
commissioner a true statement of its financial condition,
transactions, and affairs for the preceding calendar year and
pay a fee of ten dollars for filing. The statement shall be in
general form and context as approved by the national association of insurance commissioners for fraternal benefit societies and as supplemented by additional information required
by the commissioner.
[Title 48 RCW—page 241]
48.36A.263
Title 48 RCW: Insurance
(2) As part of the required annual statement, each society
shall, on or before the first day of March, file with the commissioner a valuation of its certificates in force on December
31st last preceding, provided the commissioner may, in the
commissioner's discretion for cause shown, extend the time
for filing the valuation for not more than two calendar
months. The valuation shall be done in accordance with the
standards specified in RCW 48.36A.250. The valuation and
underlying data shall be certified by a qualified actuary or, at
the expense of the society, verified by the actuary of the
department of insurance of the state of domicile of the society.
(3) A society neglecting to file the annual statement in
the form and within the time provided by this section shall
forfeit one hundred dollars for each day during which the
neglect continues, and, upon notice by the commissioner, its
authority to do business in this state shall cease while the
default continues. [1987 c 366 § 26.]
48.36A.263
48.36A.263 Filing of financial statements. Every fraternal benefit society holding a certificate of authority shall
file its financial statements as required by this code and by
the commissioner in accordance with the accounting practices and procedures manuals as adopted by the national association of insurance commissioners, unless otherwise provided by law. [1999 c 33 § 2.]
not subsequently be authorized unless the grounds for the
suspension, revocation, or refusal no longer exist and the
society is otherwise fully qualified. [1996 c 236 § 6.]
48.36A.278
48.36A.278 Notice to agents of loss of authority.
Upon the suspension, revocation, or refusal of a society's
license, the commissioner shall give notice to the society and
shall suspend, revoke, or refuse the authority of its agents to
represent it in this state and give notice to the agents. [1996
c 236 § 7.]
48.36A.280
48.36A.280 Examinations. (1) The commissioner, or
any person the commissioner may appoint, may examine any
domestic, foreign, or alien society transacting or applying for
admission to transact business in this state in the same manner as authorized by chapter 48.03 RCW. Requirements of
notice and an opportunity to respond before findings are
made public as provided in the laws regulating insurers shall
also be applicable to the examination of societies.
(2) The expense of each examination and of each valuation, including the compensation and actual expense of examiners, shall be paid by the society examined or whose certificates are valued. The payments shall be made upon receipt of
statements furnished by the commissioner. [1987 c 366 §
28.]
48.36A.282
48.36A.270
48.36A.270 Licenses and renewals—Fees—Existing
societies. A license under this chapter continues in force
until suspended, revoked, or not renewed. A license is subject
to renewal annually on the first day of July upon payment of
the fee for the license. If not so renewed, the certificate
expires as of the thirtieth day of June of the same year.
Licenses existing on June 9, 1994, continue in force until July
1, 1995, unless revoked or suspended. For each license or
renewal the society shall pay the commissioner the fee established pursuant to RCW 48.14.010, subject to the retaliatory
provision of RCW 48.14.040. A certified copy or duplicate of
the license shall be prima facie evidence that the licensee is a
fraternal benefit society within the meaning of this chapter.
[1994 c 131 § 1; 1987 c 366 § 27.]
48.36A.272
48.36A.272 Notice of intent to suspend, revoke, or
refuse to renew a license. The commissioner shall give a
society notice of his or her intention to suspend, revoke, or
refuse to renew its license not less than ten days before the
effective date of the order of suspension, revocation or
refusal, except that advance notice of intention is not required
where the order results from a domestic society's failure to
make good a deficiency of assets as required by the commissioner. [1996 c 236 § 4.]
48.36A.274
48.36A.274 Duration of suspension. The commissioner shall not suspend a society's license for a period in
excess of one year, and shall state in his or her order of suspension the period during which the order is effective. [1996
c 236 § 5.]
48.36A.276
48.36A.276 Reauthorization of license. A society
whose license has been suspended, revoked, or refused may
[Title 48 RCW—page 242]
48.36A.282 Transactions hazardous to certificate
holders or creditors—Standards for consideration. The
following standards may be considered by the commissioner
to determine whether the continued operation of any society
transacting an insurance business in this state might be
deemed to be hazardous to the certificate holders or creditors.
The commissioner may consider:
(1) Adverse findings reported in either a financial condition or market conduct examination report, or both, of a state
insurance department that could lead to impairment of surplus;
(2) The national association of insurance commissioners
insurance regulatory information system and its related
reports;
(3) The ratios of commission expense, general insurance
expense, policy benefits, and reserve increases as to annual
premium and net investment income that could lead to an
impairment of surplus;
(4) The society's asset portfolio when viewed in light of
current economic conditions is not of sufficient value, liquidity, or diversity to assure the society's ability to meet its outstanding obligations as they mature;
(5) The ability of an assuming reinsurer to perform and
whether the society's reinsurance program provides sufficient
protection for the society's remaining surplus after taking into
account the society's cash flow and the classes of business
written as well as the financial condition of the assuming
reinsurer;
(6) The society's operating loss in the last twelve-month
period or any shorter period of time, including but not limited
to net capital gain or loss, change in nonadmitted assets, and
cash refunds paid to members, is greater than fifty percent of
the society's remaining surplus as regards certificate holders
in excess of the minimum required;
(2004 Ed.)
Fraternal Benefit Societies
(7) Whether any affiliate, subsidiary, or reinsurer is
insolvent, threatened with insolvency, or delinquent in payment of its monetary or other obligation;
(8) Contingent liabilities, pledges, or guaranties which
either individually or collectively involve a total amount that
in the opinion of the commissioner may affect the solvency of
the society;
(9) The age and collectibility of receivables;
(10) Whether the management of a society, including
officers, trustees, directors, or any other person who directly
or indirectly controls the operation of the society, fails to possess and demonstrate the competence, fitness, and reputation
deemed necessary to serve the society in such a position;
(11) Whether management of a society has failed to
respond to inquiries relative to the condition of the society or
has furnished misleading information concerning an inquiry;
(12) Whether management of a society either has filed
any false or misleading sworn financial statement, or has
released a false or misleading financial statement to lending
institutions or to the general public, or has made a false or
misleading entry, or has omitted an entry of material amount
in the books of the society;
(13) Whether the society has grown so rapidly and to
such an extent that it lacks adequate financial and administrative capacity to meet its obligations in a timely manner; and
(14) Whether the society has experienced or will experience in the foreseeable future, either cash flow problems or
liquidity problems, or both. [1996 c 236 § 8.]
48.36A.284 Determination of financial condition—
Hazardous to certificate holders—Commissioner's
order—Hearing. (1) For the purpose of making a determination of a society's financial condition, the commissioner
may:
(a) Disregard any credit or amount receivable resulting
from transactions with a reinsurer that is insolvent, impaired,
or otherwise subject to a delinquency proceeding;
(b) Make appropriate adjustments to asset values attributable to investments in or transactions with parents, subsidiaries, or affiliates;
(c) Refuse to recognize the stated value of accounts
receivable if the ability to collect receivables is highly speculative in view of the age of the account or the financial condition of the debtor; or
(d) Increase the society's liability in an amount equal to
any contingent liability, pledge, or guarantee not otherwise
included if there is a substantial risk that the society will be
called upon to meet the obligation undertaken within the next
twelve-month period.
(2) If the commissioner determines that the continued
operation of the society authorized to transact business in this
state may be hazardous to the certificate holders, then the
commissioner may, in conjunction with or in lieu of a notice
required or permitted by RCW 48.36A.272, issue an order
requiring the society to:
(a) Reduce the total amount of present and potential liability for policy benefits by reinsurance;
(b) Reduce, suspend, or limit the volume of business
being accepted or renewed;
(c) Reduce general insurance and commission expenses
by specified methods;
48.36A.284
(2004 Ed.)
48.36A.290
(d) Increase the society's surplus;
(e) Suspend or limit the declaration and payment of
refunds by a society to its members;
(f) File reports in a form acceptable to the commissioner
concerning the market value of a society's assets;
(g) Limit or withdraw from certain investments or discontinue certain investment practices to the extent the commissioner deems necessary;
(h) Document the adequacy of premium rates in relation
to the risks insured; or
(i) File, in addition to regular annual statements, interim
financial reports on the form adopted by the national association of insurance commissioners or on a format promulgated
by the commissioner.
(3) Any society subject to an order under subsection (2)
of this section may make a written demand for a hearing, subject to the requirements of RCW 48.04.010, by specifying in
what respects it is aggrieved and the grounds to be relied
upon as basis for the relief to be demanded at the hearing.
[1996 c 236 § 9.]
48.36A.286
48.36A.286 Rehabilitation, liquidation, or conservation of society—Same as insurance companies—Priority
of distribution of claims. (1) Any rehabilitation, liquidation, or conservation of a domestic fraternal benefit society is
the same as the rehabilitation, liquidation, or conservation of
an insurance company and shall be conducted under the
supervision of the commissioner pursuant to the law governing the rehabilitation, liquidation, or conservation of insurance companies. The commissioner may apply for an order
directing the commissioner to rehabilitate, liquidate, or conserve a domestic fraternal benefit society upon any one or
more of the following grounds: That the domestic fraternal
benefit society:
(a) Is insolvent; or
(b) Has ceased transacting insurance business for a
period of one year; or
(c) Is insolvent and has commenced voluntary liquidation or dissolution, or attempts to commence or prosecute any
action or proceeding to liquidate its business or affairs, or to
dissolve its corporate charter, or to procure the appointment
of a receiver, trustee, custodian, or sequestrator under any
law except this code; or
(d) Any of the matters set forth in RCW 48.36A.310.
(2) The priority of the distribution of claims from a
domestic fraternal benefit society's estate shall be as set forth
in RCW 48.31.280. [1996 c 236 § 10.]
48.36A.290
48.36A.290 License required—Obtaining. (1) No foreign or alien society shall transact business in this state without a license issued by the commissioner. Any society desiring admission to this state shall comply substantially with the
requirements and limitations of this chapter applicable to
domestic societies and must have and continue to maintain
unimpaired surplus in the minimum amount of total capital
and surplus required by RCW 48.05.340. A society may be
licensed to transact business in this state upon filing with the
commissioner:
(a) A duly certified copy of its articles of incorporation;
[Title 48 RCW—page 243]
48.36A.310
Title 48 RCW: Insurance
(b) A copy of its bylaws, certified by its secretary or corresponding officer;
(c) A power of attorney to the commissioner as prescribed in RCW 48.36A.410;
(d) A statement of its business under oath by its president
and secretary, or corresponding officers, in a form prescribed
by the commissioner, verified by an examination made by the
supervising insurance official of its home state or other state,
territory, province, or country, satisfactory to the commissioner;
(e) Certification from the proper official of its home
state, territory, province, or country that the society is legally
incorporated and licensed to transact business;
(f) Copies of its certificate forms; and
(g) Such other information as the commissioner may
deem necessary; and upon a showing that its assets are
invested in accordance with the provisions of this chapter.
(2) After June 30, 1997, a foreign or alien society which
does not have unimpaired surplus in the minimum amount of
total capital and surplus required by RCW 48.05.340 may not
issue any new policies or certificates until the society has
unimpaired surplus in the minimum amount of total capital
and surplus required by RCW 48.05.340; however, a foreign
or alien society may continue to issue new policies or certificates to members of the society who have an existing policy
or certificate in force with the society on June 30, 1997. Once
such a foreign or alien society obtains unimpaired surplus in
the minimum amount of total capital and surplus required by
RCW 48.05.340, the society must continue to maintain unimpaired surplus in the minimum amount of total capital and
surplus required by RCW 48.05.340.
(3) After June 30, 1997, a foreign or alien society which
had unimpaired surplus in the minimum amount of total capital and surplus required by RCW 48.05.340 on December
31, 1996, must continue to maintain unimpaired surplus in
the minimum amount of total capital and surplus required by
RCW 48.05.340.
(4) The commissioner may, by rule, require foreign or
alien fraternal societies to have and maintain a larger amount
of surplus than the minimum amount of capital and surplus
prescribed under RCW 48.05.340, based upon the type, volume, and nature of insurance business transacted, consistent
with the principles of risk-based capital modified to recognize the special characteristics of fraternal benefit societies.
[1996 c 236 § 2; 1987 c 366 § 29.]
48.36A.310 Deficiencies, noncompliance by societies—Actions against license. (1) The commissioner may
refuse, suspend, or revoke a fraternal benefit society's
license, if the society:
(a) Has exceeded its powers;
(b) Has failed to comply with any of the provisions of
this chapter;
(c) Is not fulfilling its contracts in good faith;
(d) Is conducting its business fraudulently;
(e) Has a membership of less than four hundred after an
existence of one year or more;
(f) Is found by the commissioner to be in such a condition that its further transaction of insurance in this state would
be hazardous to certificate holders and the people in this
state;
48.36A.310
[Title 48 RCW—page 244]
(g) Refuses to remove or discharge a trustee, director, or
officer who has been convicted of any crime involving fraud,
dishonesty, or like moral turpitude;
(h) Refuses to be examined, or if its trustees, directors,
officers, employees, or representatives refuse to submit to
examination or to produce its accounts, records, and files for
examination by the commissioner when required, or refuse to
perform any legal obligation relative to the examination;
(i) Fails to pay any final judgment rendered against it in
this state upon any certificate, or undertaking issued by it,
within thirty days after the judgment became final or within
thirty days after time for taking an appeal has expired, or
within thirty days after dismissal of an appeal before final
determination, whichever date is the later;
(j) Is found by the commissioner, after investigation or
upon receipt of reliable information, to be managed by persons, whether by its trustees, directors, officers, or by any
other means, who are incompetent or untrustworthy or so
lacking in fraternal benefit society managerial experience as
to make a proposed operation hazardous to its members; or
that there is good reason to believe it is affiliated directly or
indirectly through ownership, control, or business relations,
with any person or persons whose business operations are or
have been found to be in violation of any law or rule, to the
detriment of the members of the society or of the public, by
bad faith or by manipulation of the assets, or of accounts, or
of reinsurance of the society; or
(k) Does business through agents or other representatives in this state or in any other state who are not properly
licensed under applicable laws and rules.
(2) Nothing in this section shall prevent a society from
continuing, in good faith, all contracts made in this state during the time the society was legally authorized to transact
business herein. [1996 c 236 § 3; 1987 c 366 § 31.]
48.36A.320
48.36A.320 Requirements for injunction. No application or petition for injunction against any domestic, foreign,
or alien society, or lodge thereof, shall be maintained in any
court of this state unless made by the attorney general upon
request of the commissioner. [1987 c 366 § 32.]
48.36A.330
48.36A.330 Agents. (1) Agents of societies shall be
licensed in accordance with the applicable provisions of
chapter 48.17 RCW regulating the licensing, revocation, suspension, or termination of licenses of resident and nonresident agents. Persons who are so authorized by a fraternal benefit society for a period of one year immediately prior to June
13, 1963, shall not be required to take and pass an examination as required by RCW 48.17.110.
(2) The following individuals shall not be deemed an
agent of a fraternal benefit society within the provisions of
subsection (1) of this section:
(a) Any regular salaried officer or employee of a licensed
society who devotes substantially all of their services to
activities other than the solicitation of fraternal insurance
contracts from the public, and who receives for the solicitation of such contracts no commission or other compensation
directly dependent upon the amount of business obtained; or
(b) Any agent or representative of a society who devotes,
or intends to devote, less than fifty percent of their time to the
(2004 Ed.)
Fraternal Benefit Societies
solicitation and procurement of insurance contracts for such
society: PROVIDED, That any person who in the preceding
calendar year has solicited and procured life insurance contracts on behalf of any society in an amount of insurance in
excess of fifty thousand dollars shall be conclusively presumed to be devoting, or intending to devote, fifty percent of
the person's time to the solicitation or procurement of insurance contracts for such society. [1987 c 366 § 33.]
48.36A.340
48.36A.340 Unfair trade practices. (1) Except as provided in subsection (2) of this section, every society authorized to do business in this state shall be subject to the provisions of chapter 48.30 RCW relating to unfair trade practices.
(2) Nothing in chapter 48.30 RCW shall be construed as
applying to or affecting the right of any society to determine
its eligibility requirements for membership, or be construed
as applying to or affecting the offering of benefits exclusively
to members or persons eligible for membership in the society
by a subsidiary corporation or affiliated organization of the
society. [1987 c 366 § 34.]
48.36A.350
48.36A.350 Service of process upon commissioner.
(1) Every society authorized to do business in this state shall:
(a) Appoint in writing the commissioner and each successor in office to be its true and lawful attorney upon whom
all lawful process in any action or proceeding against it shall
be served;
(b) Agree in writing that any lawful process against it
which is served on the commissioner shall be of the same
legal force and validity as if served upon the society; and
(c) Agree that the authority shall continue in force so
long as any liability remains outstanding in this state.
Copies of such appointment, certified by said commissioner, shall be deemed sufficient evidence thereof and shall
be admitted in evidence with the same force and effect as the
original.
(2) Service shall only be made upon the commissioner,
or if absent, upon the person in charge of the commissioner's
office. It shall be made in duplicate and shall constitute sufficient service upon the society. When legal process against a
society is served upon the commissioner, the commissioner
shall forward one of the duplicate copies by registered mail,
prepaid, directed to the secretary or corresponding officer.
No service shall require a society to file its answer, pleading,
or defense in less than forty days from the date of mailing the
copy of the service to a society. Legal process shall not be
served upon a society except in the manner provided in this
section. At the time of serving any process upon the commissioner, the plaintiff or complainant in the action shall pay to
the commissioner the fee established pursuant to RCW
48.05.210. [1987 c 366 § 35.]
48.36A.360
48.36A.360 Penalties. (1) Any person who wilfully
makes a false or fraudulent statement in or relating to an
application for membership or for the purpose of obtaining
money from or a benefit in any society, shall upon conviction
be fined not less than one hundred dollars nor more than five
hundred dollars or imprisonment in the county jail not less
than thirty days nor more than one year, or both.
(2004 Ed.)
48.36A.370
(2) Any person who wilfully makes a false or fraudulent
statement in any verified report or declaration under oath
required or authorized by this chapter, or of any material fact
or thing contained in a sworn statement concerning the death
or disability of an insured for the purpose of procuring payment of a benefit named in the certificate, shall be guilty of
false swearing and shall be subject to the penalties under
RCW 9A.72.040.
(3) Any person who solicits membership for, or in any
manner assists in procuring membership in, any society not
licensed to do business in this state shall be guilty of a misdemeanor and upon conviction be fined not less than fifty dollars nor more than two hundred dollars.
(4) Any person guilty of a wilful violation of, or neglect
or refusal to comply with, the provisions of this chapter for
which a penalty is not otherwise prescribed, shall upon conviction, be subject to a fine not exceeding two hundred dollars. [1987 c 366 § 36.]
48.36A.370 Exemptions. (1) Nothing contained in this
chapter shall be so construed as to affect or apply to:
(a) Grand or subordinate lodges of Masons, Odd Fellows, Improved Order of Red Men, Fraternal Order of
Eagles, Loyal Order of Moose, or Knights of Pythias, exclusive of the insurance department of the Supreme Lodge of
Knights of Pythias, the Grand Aerie Fraternal Order of
Eagles, and the Junior Order of United American Mechanics,
exclusive of the beneficiary degree of insurance branch of the
National Council Junior Order [of] United American
Mechanics, or similar societies which do not issue insurance
certificates;
(b) Orders, societies, or associations which admit to
membership only persons engaged in one or more crafts or
hazardous occupations, in the same or similar lines of business, insuring only their own members and their families, and
the ladies' societies or ladies' auxiliaries to such orders, societies, or associations;
(c) Any association of local lodges of a society now
doing business in this state which provides death benefits not
exceeding three hundred dollars to any one person, or disability benefit not exceeding three hundred dollars in any one
year to any one person, or both; or any contracts of reinsurance business on such plan in this state;
(d) Domestic societies which limit their membership to
the employees of a particular city or town, designated firm,
business house, or corporation;
(e) Domestic lodges, orders, or associations of a purely
religious, charitable, and benevolent description, which do
not provide for a death benefit of more than one hundred dollars, or for disability benefits of more than one hundred fifty
dollars to any one person in any one year: PROVIDED, That
any such domestic order or society which has more than five
hundred members and provides for death or disability benefits, and any such domestic lodge, order, or society which
issues to any person a certificate providing for the payment of
benefits, shall not be exempt by the provisions of this section,
but shall comply with all the requirements of this chapter.
The commissioner may require from any society such
information as will enable the commissioner to determine
whether the society is exempt from the provisions of this
chapter.
48.36A.370
[Title 48 RCW—page 245]
48.36A.380
Title 48 RCW: Insurance
(2) No society, which is exempt by the provisions of this
section from the requirements of this chapter shall give or
allow or promise to give or allow to any person any compensation for procuring new members.
(3) Any fraternal benefit society, heretofore organized
and incorporated and operating as set forth in RCW
48.36A.010, 48.36A.020, and 48.36A.030, providing for
benefits in case of death or disability resulting solely from
accidents, but which does not obligate itself to pay other
death or sick benefits, may be licensed under the provisions
of this chapter, and shall have all the privileges and shall be
subject to all the provisions and regulations of this chapter,
except that the provisions of this chapter requiring medical
examinations, valuations of benefit certificates, and that the
certificate shall specify the amount of benefits, shall not
apply to such society.
(4) The commissioner may require from any society or
association, by examination or otherwise, such information
as will enable the commissioner to determine whether the
society or association is exempt from the provisions of this
chapter.
(5) Societies, exempted under the provisions of this section, shall also be exempt from all other provisions of the
insurance laws of this state. [1987 c 366 § 37.]
48.36A.380
48.36A.380 World War I societies. Any corporation,
society, order, or voluntary association operating as set forth
in RCW 48.36A.010, 48.36A.020, and 48.36A.030, organized during the war in which the United States entered on
April 6, 1917, with the purposes of assisting the government
of the United States in maintaining and increasing the production of commodities essential for the prosecution of that
war, and of developing loyalty to the United States, or whose
membership is limited to veterans of that war, may be
licensed under the provisions of this chapter and shall have
all the privileges and shall be subject to all the provisions and
regulations of this chapter, except that the provisions of this
chapter requiring death benefits of at least one thousand dollars, medical examinations, and valuations of benefit certificates, shall not apply to such society, but the society may provide benefits in case of death or disability resulting solely
from accidents in an amount not exceeding one thousand dollars and may also provide for death or funeral benefits, or
both, not exceeding one hundred dollars each, and for sick or
disability benefits not exceeding five hundred dollars to any
one person, in any one year. Any corporation, society, order,
or voluntary association organized under the provisions of
this section shall file with the insurance commissioner a copy
of all its rates and policy forms. Rates and policy forms must
be approved by the insurance commissioner before becoming
effective. All rates and forms approved by the commissioner
shall be observed by the society until amended rates or forms
shall have been filed with and approved by the insurance
commissioner. [1987 c 366 § 38.]
on the lodge system, having ritualistic work and ceremonies,
is herein designated as a fraternal mutual insurer.
(2) Only fraternal mutual property insurers which were
authorized insurers immediately prior to October 1, 1947,
may hereafter be so authorized.
(3) A fraternal mutual insurer shall be subject to the
applicable provisions of this title governing domestic mutual
insurers except only as to the provisions relative to taxes,
fees, and licenses. The bylaws of such insurer shall be as
adopted or amended by majority vote of its members present
at a duly held meeting of its members, and a copy thereof
shall be filed with the commissioner. Such an insurer shall
pay for its annual license and filing its annual statement, the
sum of ten dollars. Such an insurer shall pay the expense of
examinations of it by the commissioner. The payment shall
be made upon receipt of statements furnished by the commissioner.
(4) A fraternal mutual insurer may insure corporations,
associations, and firms owned by and affiliated with such
society and operated for the benefit of its members, and may
insure corporations and firms a majority of whose shareholders or members are members of such society.
(5) A fraternal mutual insurer shall participate in and
accept its equitable share of insurance to be issued to applicants under any assigned risk plan operating pursuant to
RCW 48.22.020, and may participate in and accept its equitable share of insurance to be issued to applicants under any
similar plan lawfully existing in any state in which the insurer
is authorized to transact insurance, notwithstanding that the
applicants are not otherwise qualified for insurance under
subsection (4) of this section. Applicants who are not qualified by membership or otherwise for acceptance by the
insurer, shall be so assigned to the insurer except to make up
the deficiency, if any, between the number of qualified applicants available for assignment and the maximum quota of
applicants to be assigned to the insurer within the current
period.
(6) A fraternal mutual insurer doing business on the
assessment premium plan:
(a) Shall be exempt also from the provisions of this chapter governing financial qualifications;
(b) Shall not be authorized to transact any kind of insurance other than property insurance, nor have authority to
accept reinsurance.
(7) A fraternal mutual insurer doing business on the cash
premium plan:
(a) May be authorized to transact additional kinds of
insurance, other than life or title insurance, subject to the
same requirements as to surplus funds and reserves as apply
to domestic mutual insurers on the cash premium plan;
(b) May accept reinsurance only of such kinds of insurance as it is authorized to transact direct and only from insurers likewise affiliated with and composed solely of the members of the same designated fraternal society. [1987 c 366 §
39.]
48.36A.390
48.36A.390 Fraternal mutual insurers. (1) A domestic mutual property insurer which is affiliated with and is
comprised exclusively of members of a specified fraternal
society that conducts its business and secures its membership
[Title 48 RCW—page 246]
48.36A.400
48.36A.400 Fraternal mutual life insurers. (1) A
mutual life insurer which is affiliated with and insures exclusively members of a specified fraternal society, which society
conducts its business and secures its membership on the
(2004 Ed.)
Charitable Gift Annuity Business
lodge system, having ritualistic work and ceremonies, is
herein designated as a fraternal mutual life insurer.
(2) Such an insurer shall be subject to the applicable provisions of this title governing mutual life insurers except only
as to the provisions relative to annual meeting, taxes, fees,
and licenses. Such an insurer shall pay for its annual license
and filing its annual statement, the sum of ten dollars. Such
an insurer shall pay the expense of examinations of it by the
commissioner, upon statement furnished by the commissioner. [1987 c 366 § 40.]
48.36A.410
48.36A.410 Review of commissioner's decisions and
findings. All decisions and findings of the commissioner
made under the provisions of this chapter shall be subject to
review as provided in chapter 34.05 RCW. [1987 c 366 §
41.]
48.36A.900
48.36A.900 Severability—1987 c 366. If any provision
of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the
application of the provision to other persons or circumstances
is not affected. [1987 c 366 § 43.]
48.36A.901
48.36A.901 Effective date—1987 c 366. This act shall
take effect January 1, 1988. [1987 c 366 § 45.]
Chapter 48.38 RCW
CHARITABLE GIFT ANNUITY BUSINESS
Chapter 48.38
Sections
48.38.010
48.38.012
48.38.020
48.38.030
48.38.040
48.38.042
48.38.050
48.38.060
48.38.070
48.38.075
48.38.010
Certificate of exemption—Qualification for—Application,
contents—Minimum unrestricted net assets—"Qualified
actuary" defined.
Minimum unrestricted net assets required.
Separate reserve fund—Treatment of assets—Minimum
amounts—Revocation of certificate upon violation—Purchase of single premium life annuity.
Charitable annuity contract or policy form—Contents.
Certificate holder exempt from certain title provisions—Chapter 48.31 RCW applies.
Certificate holder—Variable annuity business prohibited.
Grounds for denial, revocation, or suspension of certificate of
exemption—Fine may be levied.
Hearings and appeals provisions inapplicable.
Enforcement powers and duties.
Rules.
48.38.010 Certificate of exemption—Qualification
for—Application, contents—Minimum unrestricted net
assets—"Qualified actuary" defined. The commissioner
may grant a certificate of exemption to any insurer or educational, religious, charitable, or scientific institution conducting a charitable gift annuity business:
(1) Which is organized and operated exclusively as, or
for the purpose of aiding, an educational, religious, charitable, or scientific institution which is organized as a nonprofit
organization without profit to any person, firm, partnership,
association, corporation, or other entity;
(2) Which possesses a current tax exempt status under
the laws of the United States;
(3) Which serves such purpose by issuing charitable gift
annuity contracts only for the benefit of such educational,
religious, charitable, or scientific institution;
(2004 Ed.)
48.38.010
(4) Which appoints the insurance commissioner as its
true and lawful attorney upon whom may be served lawful
process in any action, suit, or proceeding in any court, which
appointment shall be irrevocable, shall bind the insurer or
institution or any successor in interest, shall remain in effect
as long as there is in force in this state any contract made or
issued by the insurer or institution, or any obligation arising
therefrom, and shall be processed in accordance with RCW
48.05.210;
(5) Which is fully and legally organized and qualified to
do business and has been actively doing business under the
laws of the state of its domicile for a period of at least three
years prior to its application for a certificate of exemption;
(6) Which has and maintains minimum unrestricted net
assets of five hundred thousand dollars. "Unrestricted net
assets" means the excess of total assets over total liabilities
that are neither permanently restricted nor temporarily
restricted by donor-imposed stipulations;
(7) Which files with the insurance commissioner its
application for a certificate of exemption showing:
(a) Its name, location, and organization date;
(b) The kinds of charitable annuities it proposes to offer;
(c) A statement of the financial condition, management,
and affairs of the organization and any affiliate thereof, as
that term is defined in RCW 48.31B.005, on a form satisfactory to, or furnished by the insurance commissioner;
(d) Such other documents, stipulations, or information as
the insurance commissioner may reasonably require to evidence compliance with the provisions of this chapter;
(8) Which subjects itself and any affiliate thereof, as that
term is defined in RCW 48.31B.005, to periodic examinations conducted under chapter 48.03 RCW as may be deemed
necessary by the insurance commissioner;
(9) Which files with the insurance commissioner for the
commissioner's advance approval a copy of any policy or
contract form to be offered or issued to residents of this state.
The grounds for disapproval of the policy or contract form
shall be those set forth in RCW 48.18.110; and
(10) Which:
(a) Files with the insurance commissioner on or before
March 1 of each year a copy of its annual statement prepared
pursuant to the laws of its state of domicile, as well as such
other financial material as may be requested, including the
annual statement or other such financial materials as may be
requested relating to any affiliate, as that term is defined in
RCW 48.31B.005; and
(b) Coincident with the filing of its annual statement,
pays an annual filing fee of twenty-five dollars plus five dollars for each charitable gift annuity contract written for residents of this state during the previous calendar year; and
(c) Which includes on or attaches to the first page of the
annual statement the statement of a qualified actuary setting
forth the actuary's opinion relating to annuity reserves and
other actuarial items. "Qualified actuary" as used in this subsection means a member in good standing of the American
academy of actuaries or a person who has otherwise demonstrated actuarial competence to the satisfaction of the insurance regulatory official of the domiciliary state. [1998 c 284
§ 1; 1979 c 130 § 6.]
Severability—1979 c 130: See note following RCW 28B.10.485.
[Title 48 RCW—page 247]
48.38.012
Title 48 RCW: Insurance
48.38.012
48.38.012 Minimum unrestricted net assets required.
After June 30, 1998, an insurer or institution which does not
have the minimum unrestricted net assets required by RCW
48.38.010(6) may not issue any new charitable gift annuities
until the insurer or institution has and maintains the minimum
unrestricted net assets required by RCW 48.38.010(6). [1998
c 284 § 7.]
48.38.020
48.38.020 Separate reserve fund—Treatment of
assets—Minimum amounts—Revocation of certificate
upon violation—Purchase of single premium life annuity.
(1) Upon granting to such insurer or institution under RCW
48.38.010 a certificate of exemption to conduct a charitable
gift annuity business, the insurance commissioner shall
require it to establish and maintain a separate reserve fund
adequate to meet the future payments under its charitable gift
annuity contracts.
(2) The assets of the separate reserve fund:
(a) Shall be held legally and physically segregated from
the other assets of the certificate of exemption holder;
(b) Shall be invested in the same manner that persons of
reasonable prudence, discretion, and intelligence exercise in
the management of a like enterprise, not in regard to speculating but in regard to the permanent disposition of their funds,
considering the probable income as well as the probable
safety of their capital. Investments shall be of sufficient
value, liquidity, and diversity to assure the insurer or institution's ability to meet its outstanding obligations; and
(c) Shall not be liable for any debts of the insurer or institution holding a certificate of exemption under this chapter,
other than those incurred pursuant to the issuance of charitable gift annuities.
(3) The amount of the separate reserve fund shall be:
(a) For contracts issued prior to July 1, 1998, not less
than an amount computed in accordance with the standard of
valuation based on the 1971 individual annuity mortality
table with six percent interest for single premium immediate
annuity contracts and four percent interest for all other individual annuity contracts;
(b) For contracts issued on or after July 1, 1998, in an
amount not less than the aggregate reserves calculated
according to the standards set forth in RCW 48.74.030 for
other annuities with no cash settlement options;
(c) Plus a surplus of ten percent of the combined
amounts under (a) and (b) of this subsection.
(4) The general assets of the insurer or institution holding a certificate of exemption under this chapter shall be liable for the payment of annuities to the extent that the separate
reserve fund is inadequate.
(5) For any failure on its part to establish and maintain
the separate reserve fund, the insurance commissioner shall
revoke its certificate of exemption.
(6) If an institution holding a certificate of exemption
under RCW 48.38.010 has purchased a single premium life
annuity that pays the entire amount stipulated in the gift
annuity agreement or agreements from an insurer (a) holding
a certificate of authority under chapter 48.05 RCW, (b)
licensed in the state in which the institution has its principle
office, and (c) licensed in the state in which the single premium life annuity is issued, then in determining the minimum
reserve fund that must be maintained under this section, a
[Title 48 RCW—page 248]
deduction shall be allowed from the minimum reserve fund in
an amount not exceeding the reserve fund amount required
for the annuity or annuities for which the single premium life
annuity is purchased, subject to the following conditions:
(i) The institution has filed with the commissioner a copy
of the single premium life annuity purchased and specifying
which charitable gift annuity or annuities are being insured;
and
(ii) The institution has entered into a written agreement
with the annuitant and the insurer issuing the single premium
life annuity providing that if for any reason the institution is
unable to continue making the annuity payments required by
its annuity agreements, the annuitants shall receive payments
directly from the insurer and the insurer shall be credited with
all of these direct payments in the accounts between the
insurer and the institution. [2002 c 295 § 1; 1998 c 284 § 2;
1979 c 130 § 7.]
Severability—1979 c 130: See note following RCW 28B.10.485.
48.38.030
48.38.030 Charitable annuity contract or policy
form—Contents. Each charitable annuity contract or policy
form shall include the following information:
(1) The value of the property to be transferred;
(2) The amount of the annuity to be paid to the transferor
or the transferor's nominee;
(3) The manner in which and the intervals at which payment is to be made;
(4) The age of the person during whose life payment is to
be made; and
(5) The reasonable value as of the date of the agreement
of the benefits thereby created. This value shall not exceed by
more than fifteen percent the net single premium for the benefits, determined in accordance with the standard of valuation
set forth in *RCW 48.38.020(1). [1979 c 130 § 8.]
*Reviser's note: RCW 48.38.020 was amended by 1998 c 284 § 2,
changing subsection (1) to subsection (3)(a).
Severability—1979 c 130: See note following RCW 28B.10.485.
48.38.040
48.38.040 Certificate holder exempt from certain
title provisions—Chapter 48.31 RCW applies. (1) An
insurer or institution holding a certificate of exemption under
this chapter shall be exempt from all other provisions of this
title except as specifically enumerated in this chapter by reference.
(2) An insurer or institution holding a certificate of
exemption under this chapter is subject to chapter 48.31
RCW. [1998 c 284 § 3; 1979 c 130 § 9.]
Severability—1979 c 130: See note following RCW 28B.10.485.
48.38.042
48.38.042 Certificate holder—Variable annuity business prohibited. An insurer or institution holding a certificate of exemption to issue charitable gift annuities under this
chapter shall not transact or be authorized to transact a variable annuity business as described in chapter 48.18A RCW.
[1998 c 284 § 5.]
48.38.050
48.38.050 Grounds for denial, revocation, or suspension of certificate of exemption—Fine may be levied. (1)
The insurance commissioner may refuse to grant, or may
revoke or suspend, a certificate of exemption if the insurance
(2004 Ed.)
Health Insurance Coverage Access Act
commissioner finds that the insurer or institution does not
meet the requirements of this chapter or if the insurance commissioner finds that the insurer or institution has violated
RCW 48.01.030 or any provisions of chapter 48.30 RCW or
is found by the insurance commissioner to be in such condition that its further issuance of charitable gift annuities would
be hazardous to annuity contract holders and the people of
this state.
(2) After hearing or with the consent of the insurer or
institution and in addition to or in lieu of the suspension,
revocation, or refusal to renew any certificate of exemption,
the commissioner may levy a fine upon the insurer or institution in an amount not more than ten thousand dollars. The
order levying such a fine shall specify the period within
which the fine shall be fully paid and which period shall not
be less than fifteen nor more than thirty days from the date of
the order. Upon failure to pay such a fine when due the commissioner shall revoke the certificate of exemption of the
insurer or institution if not already revoked, and the fine shall
be recovered in a civil action brought in behalf of the commissioner by the attorney general. Any fine so collected shall
be paid by the commissioner to the state treasurer for the
account of the general fund. [1998 c 284 § 4; 1979 c 130 §
10.]
Severability—1979 c 130: See note following RCW 28B.10.485.
48.38.060 Hearings and appeals provisions inapplicable. For purposes of this chapter, the provisions of chapter
48.04 RCW are applicable. [1979 c 130 § 11.]
48.38.060
Severability—1979 c 130: See note following RCW 28B.10.485.
48.38.070 Enforcement powers and duties. For the
purposes of this chapter, the insurance commissioner has the
same powers and duties of enforcement as are provided in
RCW 48.02.080. [1979 c 130 § 12.]
48.38.070
Severability—1979 c 130: See note following RCW 28B.10.485.
48.38.075 Rules. The commissioner may adopt rules to
implement and administer this chapter. [1998 c 284 § 6.]
48.38.075
Chapter 48.41 RCW
HEALTH INSURANCE COVERAGE ACCESS ACT
Chapter 48.41
Sections
48.41.010
48.41.020
48.41.030
48.41.037
48.41.040
48.41.050
48.41.060
48.41.070
48.41.080
48.41.090
48.41.100
48.41.110
48.41.120
48.41.130
48.41.140
48.41.150
48.41.160
48.41.170
(2004 Ed.)
Short title.
Intent.
Definitions.
Washington state health insurance pool account.
Health insurance pool—Creation, membership, organization,
operation, rules.
Operation plan—Contents.
Board powers and duties.
Examination and report.
Pool administrator—Selection, term, duties, pay.
Financial participation in pool—Computation, deficit assessments.
Eligibility for coverage.
Policy coverage—Eligible expenses, cost containment, limits—Explanatory brochure.
Deductibles—Coinsurance—Carryover.
Policy forms—Approval required.
Coverage for children, unmarried dependents.
Medical supplement policy.
Renewal, termination, dependents' coverage—Rate changes—
Continuation.
Required rule making.
48.41.190
48.41.200
48.41.210
48.41.900
48.41.910
48.41.030
Civil and criminal immunity.
Rates—Standard risk and maximum.
Last payor of benefits.
Federal supremacy.
Severability—1987 c 431.
Group stop loss insurance exemption: RCW 48.21.015.
48.41.010
48.41.010 Short title. This chapter shall be known and
may be cited as the "Washington state health insurance coverage access act". [1987 c 431 § 1.]
48.41.020
48.41.020 Intent. It is the purpose and intent of the legislature to provide access to health insurance coverage to all
residents of Washington who are denied health insurance. It
is the intent of the Washington state health insurance coverage access act to provide a mechanism to ensure the availability of comprehensive health insurance to persons unable to
obtain such insurance coverage on either an individual or
group basis directly under any health plan. [2000 c 79 § 5;
1987 c 431 § 2.]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
48.41.030
48.41.030 Definitions. The definitions in this section
apply throughout this chapter unless the context clearly
requires otherwise.
(1) "Accounting year" means a twelve-month period
determined by the board for purposes of record-keeping and
accounting. The first accounting year may be more or less
than twelve months and, from time to time in subsequent
years, the board may order an accounting year of other than
twelve months as may be required for orderly management
and accounting of the pool.
(2) "Administrator" means the entity chosen by the board
to administer the pool under RCW 48.41.080.
(3) "Board" means the board of directors of the pool.
(4) "Commissioner" means the insurance commissioner.
(5) "Covered person" means any individual resident of
this state who is eligible to receive benefits from any member, or other health plan.
(6) "Health care facility" has the same meaning as in
RCW 70.38.025.
(7) "Health care provider" means any physician, facility,
or health care professional, who is licensed in Washington
state and entitled to reimbursement for health care services.
(8) "Health care services" means services for the purpose
of preventing, alleviating, curing, or healing human illness or
injury.
(9) "Health carrier" or "carrier" has the same meaning as
in RCW 48.43.005.
(10) "Health coverage" means any group or individual
disability insurance policy, health care service contract, and
health maintenance agreement, except those contracts
entered into for the provision of health care services pursuant
to Title XVIII of the Social Security Act, 42 U.S.C. Sec. 1395
et seq. The term does not include short-term care, long-term
care, dental, vision, accident, fixed indemnity, disability
income contracts, limited benefit or credit insurance, coverage issued as a supplement to liability insurance, insurance
arising out of the worker's compensation or similar law, automobile medical payment insurance, or insurance under which
benefits are payable with or without regard to fault and which
[Title 48 RCW—page 249]
48.41.037
Title 48 RCW: Insurance
is statutorily required to be contained in any liability insurance policy or equivalent self-insurance.
(11) "Health plan" means any arrangement by which persons, including dependents or spouses, covered or making
application to be covered under this pool, have access to hospital and medical benefits or reimbursement including any
group or individual disability insurance policy; health care
service contract; health maintenance agreement; uninsured
arrangements of group or group-type contracts including
employer self-insured, cost-plus, or other benefit methodologies not involving insurance or not governed by Title 48
RCW; coverage under group-type contracts which are not
available to the general public and can be obtained only
because of connection with a particular organization or
group; and coverage by medicare or other governmental benefits. This term includes coverage through "health coverage"
as defined under this section, and specifically excludes those
types of programs excluded under the definition of "health
coverage" in subsection (10) of this section.
(12) "Medical assistance" means coverage under Title
XIX of the federal Social Security Act (42 U.S.C., Sec. 1396
et seq.) and chapter 74.09 RCW.
(13) "Medicare" means coverage under Title XVIII of
the Social Security Act, (42 U.S.C. Sec. 1395 et seq., as
amended).
(14) "Member" means any commercial insurer which
provides disability insurance or stop loss insurance, any
health care service contractor, any health maintenance organization licensed under Title 48 RCW, and any self-funded
multiple employer welfare arrangement as defined in RCW
48.125.010. "Member" also means the Washington state
health care authority as issuer of the state uniform medical
plan. "Member" shall also mean, as soon as authorized by
federal law, employers and other entities, including a selffunding entity and employee welfare benefit plans that provide health plan benefits in this state on or after May 18,
1987. "Member" does not include any insurer, health care
service contractor, or health maintenance organization whose
products are exclusively dental products or those products
excluded from the definition of "health coverage" set forth in
subsection (10) of this section.
(15) "Network provider" means a health care provider
who has contracted in writing with the pool administrator or
a health carrier contracting with the pool administrator to
offer pool coverage to accept payment from and to look
solely to the pool or health carrier according to the terms of
the pool health plans.
(16) "Plan of operation" means the pool, including articles, by-laws, and operating rules, adopted by the board pursuant to RCW 48.41.050.
(17) "Point of service plan" means a benefit plan offered
by the pool under which a covered person may elect to
receive covered services from network providers, or nonnetwork providers at a reduced rate of benefits.
(18) "Pool" means the Washington state health insurance
pool as created in RCW 48.41.040. [2004 c 260 § 25; 2001 c
196 § 2; 2000 c 79 § 6; 1997 c 337 § 6; 1997 c 231 § 210;
1989 c 121 § 1; 1987 c 431 § 3.]
Severability—Effective date—2004 c 260: See RCW 48.125.900 and
48.125.901.
Effective date—2001 c 196: See note following RCW 48.20.025.
[Title 48 RCW—page 250]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
Short title—Part headings and captions not law—Severability—
Effective dates—1997 c 231: See notes following RCW 48.43.005.
48.41.037
48.41.037 Washington state health insurance pool
account. The Washington state health insurance pool
account is created in the custody of the state treasurer. All
receipts from moneys specifically appropriated to the account
must be deposited in the account. Expenditures from this
account shall be used to cover deficits incurred by the Washington state health insurance pool under this chapter in excess
of the threshold established in this section. To the extent
funds are available in the account, funds shall be expended
from the account to offset that portion of the deficit that
would otherwise have to be recovered by imposing an assessment on members in excess of a threshold of seventy cents
per insured person per month. The commissioner shall authorize expenditures from the account, to the extent that funds
are available in the account, upon certification by the pool
board that assessments will exceed the threshold level established in this section. The account is subject to the allotment
procedures under chapter 43.88 RCW, but an appropriation is
not required for expenditures. [2000 c 79 § 36.]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
48.41.040
48.41.040 Health insurance pool—Creation, membership, organization, operation, rules. (1) There is created a nonprofit entity to be known as the Washington state
health insurance pool. All members in this state on or after
May 18, 1987, shall be members of the pool. When authorized by federal law, all self-insured employers shall also be
members of the pool.
(2) Pursuant to chapter 34.05 RCW the commissioner
shall, within ninety days after May 18, 1987, give notice to all
members of the time and place for the initial organizational
meetings of the pool. A board of directors shall be established, which shall be comprised of ten members. The governor shall select one member of the board from each list of
three nominees submitted by statewide organizations representing each of the following: (a) Health care providers; (b)
health insurance agents; (c) small employers; and (d) large
employers. The governor shall select two members of the
board from a list of nominees submitted by statewide organizations representing health care consumers. In making these
selections, the governor may request additional names from
the statewide organizations representing each of the persons
to be selected if the governor chooses not to select a member
from the list submitted. The remaining four members of the
board shall be selected by election from among the members
of the pool. The elected members shall, to the extent possible,
include at least one representative of health care service contractors, one representative of health maintenance organizations, and one representative of commercial insurers which
provides disability insurance. The members of the board shall
elect a chair from the voting members of the board. The
insurance commissioner shall be a nonvoting, ex officio
member. When self-insured organizations other than the
Washington state health care authority become eligible for
participation in the pool, the membership of the board shall
(2004 Ed.)
Health Insurance Coverage Access Act
be increased to eleven and at least one member of the board
shall represent the self-insurers.
(3) The original members of the board of directors shall
be appointed for intervals of one to three years. Thereafter, all
board members shall serve a term of three years. Board members shall receive no compensation, but shall be reimbursed
for all travel expenses as provided in RCW 43.03.050 and
43.03.060.
(4) The board shall submit to the commissioner a plan of
operation for the pool and any amendments thereto necessary
or suitable to assure the fair, reasonable, and equitable
administration of the pool. The commissioner shall, after
notice and hearing pursuant to chapter 34.05 RCW, approve
the plan of operation if it is determined to assure the fair, reasonable, and equitable administration of the pool and provides for the sharing of pool losses on an equitable, proportionate basis among the members of the pool. The plan of
operation shall become effective upon approval in writing by
the commissioner consistent with the date on which the coverage under this chapter must be made available. If the board
fails to submit a plan of operation within one hundred eighty
days after the appointment of the board or any time thereafter
fails to submit acceptable amendments to the plan, the commissioner shall, within ninety days after notice and hearing
pursuant to chapters 34.05 and 48.04 RCW, adopt such rules
as are necessary or advisable to effectuate this chapter. The
rules shall continue in force until modified by the commissioner or superseded by a plan submitted by the board and
approved by the commissioner. [2000 c 80 § 1; 2000 c 79 §
7; 1989 c 121 § 2; 1987 c 431 § 4.]
Board of directors—Dissolved—New members—2000 c 79: "Sixty
days from March 23, 2000, the existing board of directors of the Washington
state health insurance pool shall be dissolved, and the appointment or election of new members under RCW 48.41.040 shall be effective. For purposes
of setting terms, the new members shall be treated as original members."
[2000 c 79 § 8.]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
48.41.050
48.41.050 Operation plan—Contents. The plan of
operation submitted by the board to the commissioner shall:
(1) Establish procedures for the handling and accounting
of assets and moneys of the pool;
(2) Establish regular times and places for meetings of the
board of directors;
(3) Establish procedures for records to be kept of all
financial transactions and for an annual fiscal reporting to the
commissioner;
(4) Contain additional provisions necessary and proper
for the execution of the powers and duties of the pool;
(5) Establish procedures for the collection of assessments from all members to provide for claims paid under the
plan and for administrative expenses incurred or estimated to
be incurred during the period for which the assessment is
made;
(6) Establish the amount of assessment pursuant to RCW
48.41.060, which shall occur after March 1st of each calendar
year, and which shall be due and payable within thirty days of
the receipt of the assessment notice;
(7) Select an administrator in accordance with RCW
48.41.080;
(2004 Ed.)
48.41.060
(8) Develop and implement a program to publicize the
existence of the plan, the eligibility requirements and procedures for enrollment, and to maintain public awareness of the
plan; and
(9) Establish procedures under which applicants and participants may have grievances reviewed by an impartial body
and reported to the board. [1987 c 431 § 5.]
48.41.060
48.41.060 Board powers and duties. (1) The board
shall have the general powers and authority granted under the
laws of this state to insurance companies, health care service
contractors, and health maintenance organizations, licensed
or registered to offer or provide the kinds of health coverage
defined under this title. In addition thereto, the board shall:
(a) Designate or establish the standard health questionnaire to be used under RCW 48.41.100 and 48.43.018,
including the form and content of the standard health questionnaire and the method of its application. The questionnaire must provide for an objective evaluation of an individual's health status by assigning a discreet measure, such as a
system of point scoring to each individual. The questionnaire
must not contain any questions related to pregnancy, and
pregnancy shall not be a basis for coverage by the pool. The
questionnaire shall be designed such that it is reasonably
expected to identify the eight percent of persons who are the
most costly to treat who are under individual coverage in
health benefit plans, as defined in RCW 48.43.005, in Washington state or are covered by the pool, if applied to all such
persons;
(b) Obtain from a member of the American academy of
actuaries, who is independent of the board, a certification that
the standard health questionnaire meets the requirements of
(a) of this subsection;
(c) Approve the standard health questionnaire and any
modifications needed to comply with this chapter. The standard health questionnaire shall be submitted to an actuary for
certification, modified as necessary, and approved at least
every eighteen months. The designation and approval of the
standard health questionnaire by the board shall not be subject to review and approval by the commissioner. The standard health questionnaire or any modification thereto shall
not be used until ninety days after public notice of the
approval of the questionnaire or any modification thereto,
except that the initial standard health questionnaire approved
for use by the board after March 23, 2000, may be used
immediately following public notice of such approval;
(d) Establish appropriate rates, rate schedules, rate
adjustments, expense allowances, claim reserve formulas and
any other actuarial functions appropriate to the operation of
the pool. Rates shall not be unreasonable in relation to the
coverage provided, the risk experience, and expenses of providing the coverage. Rates and rate schedules may be
adjusted for appropriate risk factors such as age and area variation in claim costs and shall take into consideration appropriate risk factors in accordance with established actuarial
underwriting practices consistent with Washington state individual plan rating requirements under RCW 48.44.022 and
48.46.064;
(e) Assess members of the pool in accordance with the
provisions of this chapter, and make advance interim assessments as may be reasonable and necessary for the organiza[Title 48 RCW—page 251]
48.41.070
Title 48 RCW: Insurance
tional or interim operating expenses. Any interim assessments will be credited as offsets against any regular assessments due following the close of the year. Self-funded
multiple employer welfare arrangements are subject to
assessment under this subsection only in the event that
assessments are not preempted by the employee retirement
income security act of 1974, as amended, 29 U.S.C. Sec.
1001 et seq. The arrangements and the commissioner shall
initially request an advisory opinion from the United States
department of labor or obtain a declaratory ruling from a federal court on the legality of imposing assessments on these
arrangements before imposing the assessment. If there has
not been a final determination by the United States department of labor or a federal court that the assessments are not
preempted by federal law, the assessments provided for in
this subsection become effective on March 1, 2005, or thirty
days following the issuance of a certificate of authority,
whichever is later. During the time period between March 1,
2005, or thirty days following the issuance of a certificate of
authority, whichever is later, and the final determination by
the United States department of labor or a federal court, any
assessments shall be deposited in an interest bearing escrow
account maintained by the [self-funded] multiple employer
welfare arrangement. Upon a final determination that the
assessments are not preempted by the employee retirement
income security act of 1974, as amended, 29 U.S.C. Sec.
1001 et seq., all funds in the interest bearing escrow account
shall be transferred to the board;
(f) Issue policies of health coverage in accordance with
the requirements of this chapter;
(g) Establish procedures for the administration of the
premium discount provided under RCW 48.41.200(3)(a)(iii);
(h) Contract with the Washington state health care
authority for the administration of the premium discounts
provided under RCW 48.41.200(3)(a) (i) and (ii);
(i) Set a reasonable fee to be paid to an insurance agent
licensed in Washington state for submitting an acceptable
application for enrollment in the pool; and
(j) Provide certification to the commissioner when
assessments will exceed the threshold level established in
RCW 48.41.037.
(2) In addition thereto, the board may:
(a) Enter into contracts as are necessary or proper to
carry out the provisions and purposes of this chapter including the authority, with the approval of the commissioner, to
enter into contracts with similar pools of other states for the
joint performance of common administrative functions, or
with persons or other organizations for the performance of
administrative functions;
(b) Sue or be sued, including taking any legal action as
necessary to avoid the payment of improper claims against
the pool or the coverage provided by or through the pool;
(c) Appoint appropriate legal, actuarial, and other committees as necessary to provide technical assistance in the
operation of the pool, policy, and other contract design, and
any other function within the authority of the pool; and
(d) Conduct periodic audits to assure the general accuracy of the financial data submitted to the pool, and the board
shall cause the pool to have an annual audit of its operations
by an independent certified public accountant.
[Title 48 RCW—page 252]
(3) Nothing in this section shall be construed to require
or authorize the adoption of rules under chapter 34.05 RCW.
[2004 c 260 § 26; 2000 c 79 § 9; 1997 c 337 § 5; 1997 c 231
§ 211; 1989 c 121 § 3; 1987 c 431 § 6.]
Severability—Effective date—2004 c 260: See RCW 48.125.900 and
48.125.901.
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
Short title—Part headings and captions not law—Severability—
Effective dates—1997 c 231: See notes following RCW 48.43.005.
Report on implementation of 1987 c 431: "The board shall report to
the commissioner and the appropriate committees of the legislature by April
1, 1990, on the implementation of this act. The report shall include information regarding enrollment, coverage utilization, cost, and any problems with
the program and suggest remedies." [1987 c 431 § 26.]
48.41.070 Examination and report. The pool shall be
subject to examination by the commissioner as provided
under chapter 48.03 RCW. The board of directors shall submit to the commissioner, not later than one hundred twenty
days after the end of each accounting year, a financial report
for the year in a form approved by the commissioner. [1998
c 245 § 98; 1989 c 121 § 4; 1987 c 431 § 7.]
48.41.070
48.41.080 Pool administrator—Selection, term,
duties, pay. The board shall select an administrator through
a competitive bidding process to administer the pool.
(1) The board shall evaluate bids based upon criteria
established by the board, which shall include:
(a) The administrator's proven ability to handle health
coverage;
(b) The efficiency of the administrator's claim-paying
procedures;
(c) An estimate of the total charges for administering the
plan; and
(d) The administrator's ability to administer the pool in a
cost-effective manner.
(2) The administrator shall serve for a period of three
years subject to removal for cause. At least six months prior
to the expiration of each three-year period of service by the
administrator, the board shall invite all interested parties,
including the current administrator, to submit bids to serve as
the administrator for the succeeding three-year period. Selection of the administrator for this succeeding period shall be
made at least three months prior to the end of the current
three-year period.
(3) The administrator shall perform such duties as may
be assigned by the board including:
(a) Administering eligibility and administrative claim
payment functions relating to the pool;
(b) Establishing a premium billing procedure for collection of premiums from covered persons. Billings shall be
made on a periodic basis as determined by the board, which
shall not be more frequent than a monthly billing;
(c) Performing all necessary functions to assure timely
payment of benefits to covered persons under the pool
including:
(i) Making available information relating to the proper
manner of submitting a claim for benefits to the pool, and distributing forms upon which submission shall be made;
(ii) Taking steps necessary to offer and administer managed care benefit plans; and
48.41.080
(2004 Ed.)
Health Insurance Coverage Access Act
(iii) Evaluating the eligibility of each claim for payment
by the pool;
(d) Submission of regular reports to the board regarding
the operation of the pool. The frequency, content, and form of
the report shall be as determined by the board;
(e) Following the close of each accounting year, determination of net paid and earned premiums, the expense of
administration, and the paid and incurred losses for the year
and reporting this information to the board and the commissioner on a form as prescribed by the commissioner.
(4) The administrator shall be paid as provided in the
contract between the board and the administrator for its
expenses incurred in the performance of its services. [2000 c
79 § 10; 1997 c 231 § 212; 1989 c 121 § 5; 1987 c 431 § 8.]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
Short title—Part headings and captions not law—Severability—
Effective dates—1997 c 231: See notes following RCW 48.43.005.
48.41.090
48.41.090 Financial participation in pool—Computation, deficit assessments. (1) Following the close of each
accounting year, the pool administrator shall determine the
net premium (premiums less administrative expense allowances), the pool expenses of administration, and incurred
losses for the year, taking into account investment income
and other appropriate gains and losses.
(2)(a) Each member's proportion of participation in the
pool shall be determined annually by the board based on
annual statements and other reports deemed necessary by the
board and filed by the member with the commissioner; and
shall be determined by multiplying the total cost of pool operation by a fraction. The numerator of the fraction equals that
member's total number of resident insured persons, including
spouse and dependents, covered under all health plans in the
state by that member during the preceding calendar year. The
denominator of the fraction equals the total number of resident insured persons, including spouses and dependents, covered under all health plans in the state by all pool members
during the preceding calendar year.
(b) For purposes of calculating the numerator and the
denominator under (a) of this subsection:
(i) All health plans in the state by the state health care
authority include only the uniform medical plan; and
(ii) Each ten resident insured persons, including spouse
and dependents, under a stop loss plan or the uniform medical
plan shall count as one resident insured person.
(c) Except as provided in RCW 48.41.037, any deficit
incurred by the pool shall be recouped by assessments among
members apportioned under this subsection pursuant to the
formula set forth by the board among members.
(3) The board may abate or defer, in whole or in part, the
assessment of a member if, in the opinion of the board, payment of the assessment would endanger the ability of the
member to fulfill its contractual obligations. If an assessment
against a member is abated or deferred in whole or in part, the
amount by which such assessment is abated or deferred may
be assessed against the other members in a manner consistent
with the basis for assessments set forth in subsection (2) of
this section. The member receiving such abatement or deferment shall remain liable to the pool for the deficiency.
(2004 Ed.)
48.41.100
(4) If assessments exceed actual losses and administrative expenses of the pool, the excess shall be held at interest
and used by the board to offset future losses or to reduce pool
premiums. As used in this subsection, "future losses"
includes reserves for incurred but not reported claims. [2000
c 79 § 11; 1989 c 121 § 6; 1987 c 431 § 9.]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
48.41.100
48.41.100 Eligibility for coverage. (1) The following
persons who are residents of this state are eligible for pool
coverage:
(a) Any person who provides evidence of a carrier's decision not to accept him or her for enrollment in an individual
health benefit plan as defined in RCW 48.43.005 based upon,
and within ninety days of the receipt of, the results of the
standard health questionnaire designated by the board and
administered by health carriers under RCW 48.43.018;
(b) Any person who continues to be eligible for pool
coverage based upon the results of the standard health questionnaire designated by the board and administered by the
pool administrator pursuant to subsection (3) of this section;
(c) Any person who resides in a county of the state where
no carrier or insurer eligible under chapter 48.15 RCW offers
to the public an individual health benefit plan other than a
catastrophic health plan as defined in RCW 48.43.005 at the
time of application to the pool, and who makes direct application to the pool; and
(d) Any medicare eligible person upon providing evidence of rejection for medical reasons, a requirement of
restrictive riders, an up-rated premium, or a preexisting conditions limitation on a medicare supplemental insurance policy under chapter 48.66 RCW, the effect of which is to substantially reduce coverage from that received by a person
considered a standard risk by at least one member within six
months of the date of application.
(2) The following persons are not eligible for coverage
by the pool:
(a) Any person having terminated coverage in the pool
unless (i) twelve months have lapsed since termination, or (ii)
that person can show continuous other coverage which has
been involuntarily terminated for any reason other than nonpayment of premiums. However, these exclusions do not
apply to eligible individuals as defined in section 2741(b) of
the federal health insurance portability and accountability act
of 1996 (42 U.S.C. Sec. 300gg-41(b));
(b) Any person on whose behalf the pool has paid out
one million dollars in benefits;
(c) Inmates of public institutions and persons whose benefits are duplicated under public programs. However, these
exclusions do not apply to eligible individuals as defined in
section 2741(b) of the federal health insurance portability and
accountability act of 1996 (42 U.S.C. Sec. 300gg-41(b));
(d) Any person who resides in a county of the state where
any carrier or insurer regulated under chapter 48.15 RCW
offers to the public an individual health benefit plan other
than a catastrophic health plan as defined in RCW 48.43.005
at the time of application to the pool and who does not qualify
for pool coverage based upon the results of the standard
health questionnaire, or pursuant to subsection (1)(d) of this
section.
[Title 48 RCW—page 253]
48.41.110
Title 48 RCW: Insurance
(3) When a carrier or insurer regulated under chapter
48.15 RCW begins to offer an individual health benefit plan
in a county where no carrier had been offering an individual
health benefit plan:
(a) If the health benefit plan offered is other than a catastrophic health plan as defined in RCW 48.43.005, any person enrolled in a pool plan pursuant to subsection (1)(c) of
this section in that county shall no longer be eligible for coverage under that plan pursuant to subsection (1)(c) of this section, but may continue to be eligible for pool coverage based
upon the results of the standard health questionnaire designated by the board and administered by the pool administrator. The pool administrator shall offer to administer the questionnaire to each person no longer eligible for coverage under
subsection (1)(c) of this section within thirty days of determining that he or she is no longer eligible;
(b) Losing eligibility for pool coverage under this subsection (3) does not affect a person's eligibility for pool coverage under subsection (1)(a), (b), or (d) of this section; and
(c) The pool administrator shall provide written notice to
any person who is no longer eligible for coverage under a
pool plan under this subsection (3) within thirty days of the
administrator's determination that the person is no longer eligible. The notice shall: (i) Indicate that coverage under the
plan will cease ninety days from the date that the notice is
dated; (ii) describe any other coverage options, either in or
outside of the pool, available to the person; (iii) describe the
procedures for the administration of the standard health questionnaire to determine the person's continued eligibility for
coverage under subsection (1)(b) of this section; and (iv)
describe the enrollment process for the available options outside of the pool. [2001 c 196 § 3; 2000 c 79 § 12; 1995 c 34
§ 5; 1989 c 121 § 7; 1987 c 431 § 10.]
Effective date—2001 c 196: See note following RCW 48.20.025.
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
48.41.110
48.41.110 Policy coverage—Eligible expenses, cost
containment, limits—Explanatory brochure. (1) The pool
shall offer one or more care management plans of coverage.
Such plans may, but are not required to, include point of service features that permit participants to receive in-network
benefits or out-of-network benefits subject to differential cost
shares. Covered persons enrolled in the pool on January 1,
2001, may continue coverage under the pool plan in which
they are enrolled on that date. However, the pool may incorporate managed care features into such existing plans.
(2) The administrator shall prepare a brochure outlining
the benefits and exclusions of the pool policy in plain language. After approval by the board, such brochure shall be
made reasonably available to participants or potential participants.
(3) The health insurance policy issued by the pool shall
pay only reasonable amounts for medically necessary eligible
health care services rendered or furnished for the diagnosis or
treatment of illnesses, injuries, and conditions which are not
otherwise limited or excluded. Eligible expenses are the reasonable amounts for the health care services and items for
which benefits are extended under the pool policy. Such benefits shall at minimum include, but not be limited to, the following services or related items:
[Title 48 RCW—page 254]
(a) Hospital services, including charges for the most
common semiprivate room, for the most common private
room if semiprivate rooms do not exist in the health care
facility, or for the private room if medically necessary, but
limited to a total of one hundred eighty inpatient days in a calendar year, and limited to thirty days inpatient care for mental
and nervous conditions, or alcohol, drug, or chemical dependency or abuse per calendar year;
(b) Professional services including surgery for the treatment of injuries, illnesses, or conditions, other than dental,
which are rendered by a health care provider, or at the direction of a health care provider, by a staff of registered or
licensed practical nurses, or other health care providers;
(c) The first twenty outpatient professional visits for the
diagnosis or treatment of one or more mental or nervous conditions or alcohol, drug, or chemical dependency or abuse
rendered during a calendar year by one or more physicians,
psychologists, or community mental health professionals, or,
at the direction of a physician, by other qualified licensed
health care practitioners, in the case of mental or nervous
conditions, and rendered by a state certified chemical dependency program approved under chapter 70.96A RCW, in the
case of alcohol, drug, or chemical dependency or abuse;
(d) Drugs and contraceptive devices requiring a prescription;
(e) Services of a skilled nursing facility, excluding custodial and convalescent care, for not more than one hundred
days in a calendar year as prescribed by a physician;
(f) Services of a home health agency;
(g) Chemotherapy, radioisotope, radiation, and nuclear
medicine therapy;
(h) Oxygen;
(i) Anesthesia services;
(j) Prostheses, other than dental;
(k) Durable medical equipment which has no personal
use in the absence of the condition for which prescribed;
(l) Diagnostic x-rays and laboratory tests;
(m) Oral surgery limited to the following: Fractures of
facial bones; excisions of mandibular joints, lesions of the
mouth, lip, or tongue, tumors, or cysts excluding treatment
for temporomandibular joints; incision of accessory sinuses,
mouth salivary glands or ducts; dislocations of the jaw; plastic reconstruction or repair of traumatic injuries occurring
while covered under the pool; and excision of impacted wisdom teeth;
(n) Maternity care services;
(o) Services of a physical therapist and services of a
speech therapist;
(p) Hospice services;
(q) Professional ambulance service to the nearest health
care facility qualified to treat the illness or injury; and
(r) Other medical equipment, services, or supplies
required by physician's orders and medically necessary and
consistent with the diagnosis, treatment, and condition.
(4) The board shall design and employ cost containment
measures and requirements such as, but not limited to, care
coordination, provider network limitations, preadmission
certification, and concurrent inpatient review which may
make the pool more cost-effective.
(5) The pool benefit policy may contain benefit limitations, exceptions, and cost shares such as copayments, coin(2004 Ed.)
Health Insurance Coverage Access Act
surance, and deductibles that are consistent with managed
care products, except that differential cost shares may be
adopted by the board for nonnetwork providers under point
of service plans. The pool benefit policy cost shares and limitations must be consistent with those that are generally
included in health plans approved by the insurance commissioner; however, no limitation, exception, or reduction may
be used that would exclude coverage for any disease, illness,
or injury.
(6) The pool may not reject an individual for health plan
coverage based upon preexisting conditions of the individual
or deny, exclude, or otherwise limit coverage for an individual's preexisting health conditions; except that it shall impose
a six-month benefit waiting period for preexisting conditions
for which medical advice was given, for which a health care
provider recommended or provided treatment, or for which a
prudent layperson would have sought advice or treatment,
within six months before the effective date of coverage. The
preexisting condition waiting period shall not apply to prenatal care services. The pool may not avoid the requirements of
this section through the creation of a new rate classification
or the modification of an existing rate classification. Credit
against the waiting period shall be as provided in subsection
(7) of this section.
(7)(a) Except as provided in (b) of this subsection, the
pool shall credit any preexisting condition waiting period in
its plans for a person who was enrolled at any time during the
sixty-three day period immediately preceding the date of
application for the new pool plan. For the person previously
enrolled in a group health benefit plan, the pool must credit
the aggregate of all periods of preceding coverage not separated by more than sixty-three days toward the waiting period
of the new health plan. For the person previously enrolled in
an individual health benefit plan other than a catastrophic
health plan, the pool must credit the period of coverage the
person was continuously covered under the immediately preceding health plan toward the waiting period of the new
health plan. For the purposes of this subsection, a preceding
health plan includes an employer-provided self-funded health
plan.
(b) The pool shall waive any preexisting condition waiting period for a person who is an eligible individual as
defined in section 2741(b) of the federal health insurance
portability and accountability act of 1996 (42 U.S.C. 300gg41(b)).
(8) If an application is made for the pool policy as a
result of rejection by a carrier, then the date of application to
the carrier, rather than to the pool, should govern for purposes
of determining preexisting condition credit. [2001 c 196 § 4;
2000 c 80 § 2; 2000 c 79 § 13; 1997 c 231 § 213; 1987 c 431
§ 11.]
Effective date—2001 c 196: See note following RCW 48.20.025.
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
Short title—Part headings and captions not law—Severability—
Effective dates—1997 c 231: See notes following RCW 48.43.005.
48.41.120
48.41.120 Deductibles—Coinsurance—Carryover.
(1) Subject to the limitation provided in subsection (3) of this
section, a pool policy offered in accordance with RCW
48.41.110(3) shall impose a deductible. Deductibles of five
(2004 Ed.)
48.41.140
hundred dollars and one thousand dollars on a per person per
calendar year basis shall initially be offered. The board may
authorize deductibles in other amounts. The deductible shall
be applied to the first five hundred dollars, one thousand dollars, or other authorized amount of eligible expenses incurred
by the covered person.
(2) Subject to the limitations provided in subsection (3)
of this section, a mandatory coinsurance requirement shall be
imposed at the rate of twenty percent of eligible expenses in
excess of the mandatory deductible.
(3) The maximum aggregate out of pocket payments for
eligible expenses by the insured in the form of deductibles
and coinsurance under a pool policy offered in accordance
with RCW 48.41.110(3) shall not exceed in a calendar year:
(a) One thousand five hundred dollars per individual, or
three thousand dollars per family, per calendar year for the
five hundred dollar deductible policy;
(b) Two thousand five hundred dollars per individual, or
five thousand dollars per family per calendar year for the one
thousand dollar deductible policy; or
(c) An amount authorized by the board for any other
deductible policy.
(4) Eligible expenses incurred by a covered person in the
last three months of a calendar year, and applied toward a
deductible, shall also be applied toward the deductible
amount in the next calendar year. [2000 c 79 § 14; 1989 c
121 § 8; 1987 c 431 § 12.]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
48.41.130
48.41.130 Policy forms—Approval required. All policy forms issued by the pool shall conform in substance to
prototype forms developed by the pool, and shall in all other
respects conform to the requirements of this chapter, and
shall be filed with and approved by the commissioner before
they are issued. [2000 c 79 § 15; 1997 c 231 § 215; 1987 c
431 § 13.]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
Short title—Part headings and captions not law—Severability—
Effective dates—1997 c 231: See notes following RCW 48.43.005.
48.41.140
48.41.140 Coverage for children, unmarried dependents. (1) Coverage shall provide that health insurance benefits are applicable to children of the person in whose name
the policy is issued including adopted and newly born natural
children. Coverage shall also include necessary care and
treatment of medically diagnosed congenital defects and birth
abnormalities. If payment of a specific premium is required
to provide coverage for the child, the policy may require that
notification of the birth or adoption of a child and payment of
the required premium must be furnished to the pool within
thirty-one days after the date of birth or adoption in order to
have the coverage continued beyond the thirty-one day
period. For purposes of this subsection, a child is deemed to
be adopted, and benefits are payable, when the child is physically placed for purposes of adoption under the laws of this
state with the person in whose name the policy is issued; and,
when the person in whose name the policy is issued assumes
financial responsibility for the medical expenses of the child.
[Title 48 RCW—page 255]
48.41.150
Title 48 RCW: Insurance
For purposes of this subsection, "newly born" means, and
benefits are payable, from the moment of birth.
(2) A pool policy shall provide that coverage of a dependent, unmarried person shall terminate when the person
becomes nineteen years of age: PROVIDED, That coverage
of such person shall not terminate at age nineteen while he or
she is and continues to be both (a) incapable of self-sustaining employment by reason of developmental disability or
physical handicap and (b) chiefly dependent upon the person
in whose name the policy is issued for support and maintenance, provided proof of such incapacity and dependency is
furnished to the pool by the policyholder within thirty-one
days of the dependent's attainment of age nineteen and subsequently as may be required by the pool but not more frequently than annually after the two-year period following the
dependent's attainment of age nineteen. [2000 c 79 § 16;
1987 c 431 § 14.]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
48.41.150
48.41.150 Medical supplement policy. (1) The board
shall offer a medical supplement policy for persons receiving
medicare parts A and B. The supplement policy shall provide
benefits of one hundred percent of the deductible and copayment required under medicare and eighty percent of the
charges for covered services under this chapter that are not
paid by medicare. The coverage shall include a limitation of
one thousand dollars per person on total annual out-of-pocket
expenses for the covered services.
(2) If federal law is adopted that addresses this subject,
the board shall offer a policy that is consistent with that federal law. [1989 c 121 § 9; 1987 c 431 § 15.]
48.41.160
48.41.160 Renewal, termination, dependents' coverage—Rate changes—Continuation. (1) A pool policy
offered under this chapter shall contain provisions under
which the pool is obligated to renew the policy until the day
on which the individual in whose name the policy is issued
first becomes eligible for medicare coverage. At that time,
coverage of dependents shall terminate if such dependents
are eligible for coverage under a different health plan. Dependents who become eligible for medicare prior to the individual in whose name the policy is issued, shall receive benefits
in accordance with RCW 48.41.150.
(2) The pool may not change the rates for pool policies
except on a class basis, with a clear disclosure in the policy of
the pool's right to do so.
(3) A pool policy offered under this chapter shall provide
that, upon the death of the individual in whose name the policy is issued, every other individual then covered under the
policy may elect, within a period specified in the policy, to
continue coverage under the same or a different policy.
[1987 c 431 § 16.]
48.41.170
48.41.170 Required rule making. The commissioner
shall adopt rules pursuant to chapter 34.05 RCW that:
(1) Provide for disclosure by the member of the availability of insurance coverage from the pool; and
(2) Implement this chapter. [1987 c 431 § 17.]
[Title 48 RCW—page 256]
48.41.190
48.41.190 Civil and criminal immunity. Neither the
participation by members, the establishment of rates, forms,
or procedures for coverages issued by the pool, nor any other
joint or collective action required by this chapter or the state
of Washington shall be the basis of any legal action, civil or
criminal liability or penalty against the pool, any member of
the board of directors, or members of the pool either jointly or
separately. [1989 c 121 § 10; 1987 c 431 § 19.]
48.41.200
48.41.200 Rates—Standard risk and maximum. (1)
The pool shall determine the standard risk rate by calculating
the average individual standard rate charged for coverage
comparable to pool coverage by the five largest members,
measured in terms of individual market enrollment, offering
such coverages in the state. In the event five members do not
offer comparable coverage, the standard risk rate shall be
established using reasonable actuarial techniques and shall
reflect anticipated experience and expenses for such coverage
in the individual market.
(2) Subject to subsection (3) of this section, maximum
rates for pool coverage shall be as follows:
(a) Maximum rates for a pool indemnity health plan shall
be one hundred fifty percent of the rate calculated under subsection (1) of this section;
(b) Maximum rates for a pool care management plan
shall be one hundred twenty-five percent of the rate calculated under subsection (1) of this section; and
(c) Maximum rates for a person eligible for pool coverage pursuant to RCW 48.41.100(1)(a) who was enrolled at
any time during the sixty-three day period immediately prior
to the date of application for pool coverage in a group health
benefit plan or an individual health benefit plan other than a
catastrophic health plan as defined in RCW 48.43.005, where
such coverage was continuous for at least eighteen months,
shall be:
(i) For a pool indemnity health plan, one hundred
twenty-five percent of the rate calculated under subsection
(1) of this section; and
(ii) For a pool care management plan, one hundred ten
percent of the rate calculated under subsection (1) of this section.
(3)(a) Subject to (b) and (c) of this subsection:
(i) The rate for any person aged fifty to sixty-four whose
current gross family income is less than two hundred fiftyone percent of the federal poverty level shall be reduced by
thirty percent from what it would otherwise be;
(ii) The rate for any person aged fifty to sixty-four whose
current gross family income is more than two hundred fifty
but less than three hundred one percent of the federal poverty
level shall be reduced by fifteen percent from what it would
otherwise be;
(iii) The rate for any person who has been enrolled in the
pool for more than thirty-six months shall be reduced by five
percent from what it would otherwise be.
(b) In no event shall the rate for any person be less than
one hundred ten percent of the rate calculated under subsection (1) of this section.
(c) Rate reductions under (a)(i) and (ii) of this subsection
shall be available only to the extent that funds are specifically
appropriated for this purpose in the omnibus appropriations
act. [2000 c 79 § 17; 1997 c 231 § 214; 1987 c 431 § 20.]
(2004 Ed.)
Personal Coverage, General Authority
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
Short title—Part headings and captions not law—Severability—
Effective dates—1997 c 231: See notes following RCW 48.43.005.
48.41.210 Last payor of benefits. It is the express
intent of this chapter that the pool be the last payor of benefits
whenever any other benefit is available.
(1) Benefits otherwise payable under pool coverage shall
be reduced by all amounts paid or payable through any other
health insurance, or health benefit plans, including but not
limited to self-insured plans and by all hospital and medical
expense benefits paid or payable under any worker's compensation coverage, automobile medical payment or liability
insurance whether provided on the basis of fault or nonfault,
and by any hospital or medical benefits paid or payable under
or provided pursuant to any state or federal law or program.
(2) The administrator or the pool shall have a cause of
action against an eligible person for the recovery of the
amount of benefits paid which are not for covered expenses.
Benefits due from the pool may be reduced or refused as a
set-off against any amount recoverable under this subsection.
[1987 c 431 § 21.]
48.41.210
48.41.900
48.41.900 Federal supremacy. If any part of this chapter is found to be in conflict with federal requirements which
are a prescribed condition to the allocation of federal funds to
the state, the conflicting part of this chapter is hereby
declared to be inoperative solely to the extent of the conflict
and with respect to the agencies directly affected, and such
finding or determination shall not affect the operation of the
remainder of this chapter in its application to the agencies
concerned. The rules under this chapter shall meet federal
requirements which are a necessary condition to the receipt of
federal funds by the state. [1987 c 431 § 22.]
48.41.910 Severability—1987 c 431. If any provision
of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the
application of the provision to other persons or circumstances
is not affected. [1987 c 431 § 25.]
48.41.910
Chapter 48.42 RCW
PERSONAL COVERAGE, GENERAL AUTHORITY
Chapter 48.42
(Formerly: Health care coverage, general authority)
Sections
48.42.010
48.42.020
48.42.030
48.42.040
48.42.050
48.42.090
48.42.100
Personal coverage, authority of commissioner.
Showing regulation by other agency, how done.
Examination by commissioner—When required, scope of.
Application of this title to otherwise unregulated entities.
Notice to purchasers by uninsured production agency—Notice
to production agency by administrator of coverage.
Prenatal testing—Limitation on changes to coverage.
Women's health care services—Duties of health care carriers.
48.42.010 Personal coverage, authority of commissioner. Notwithstanding any other provision of law, and
except as provided in this chapter, any person or other entity
which provides coverage in this state for life insurance, annuities, loss of time, medical, surgical, chiropractic, physical
therapy, speech pathology, audiology, professional mental
health, dental, hospital, or optometric expenses, whether the
48.42.010
(2004 Ed.)
48.42.090
coverage is by direct payment, reimbursement, the providing
of services, or otherwise, shall be subject to the authority of
the state insurance commissioner, unless the person or other
entity shows that while providing the services it is subject to
the jurisdiction and regulation of another agency of this state,
any subdivisions thereof, or the federal government. [1985 c
264 § 15; 1983 c 36 § 1.]
48.42.020
48.42.020 Showing regulation by other agency, how
done. A person or entity may show that it is subject to the
jurisdiction and regulation of another agency of this state, any
subdivision thereof, or the federal government, by providing
to the insurance commissioner the appropriate certificate,
license, or other document issued by the other governmental
agency which permits or qualifies it to provide the coverage
as defined in RCW 48.42.010. [1983 c 36 § 2.]
48.42.030
48.42.030 Examination by commissioner—When
required, scope of. Any person or entity which is unable to
show under RCW 48.42.020 that it is subject to the jurisdiction and regulation of another agency of this state, any subdivision thereof, or the federal government, shall submit to an
examination by the insurance commissioner to determine the
organization and solvency of the person or the entity, and to
determine whether or not such person or entity complies with
the applicable provisions of this title. [1983 c 36 § 3.]
48.42.040
48.42.040 Application of this title to otherwise unregulated entities. Any person or entity unable to show that it is
subject to the jurisdiction and regulation of another agency of
this state, any subdivision thereof, or the federal government,
shall be subject to all appropriate provisions of this title
regarding the conduct of its business including, but not limited to, RCW 48.43.300 through 48.43.370. [1998 c 241 §
16; 1983 c 36 § 4.]
Severability—1998 c 241: See RCW 48.43.903.
48.42.050
48.42.050 Notice to purchasers by uninsured production agency—Notice to production agency by administrator of coverage. Any production agency or administrator
which advertises, sells, transacts, or administers the coverage
in this state described in RCW 48.42.010 and which is
required to submit to an examination by the insurance commissioner under RCW 48.42.030, shall, if the coverage is not
fully insured or otherwise fully covered by an admitted life or
disability insurer or health care service contractor or health
maintenance organization agreement, advise every purchaser, prospective purchaser, and covered person of the lack
of insurance or other coverage.
Any administrator which advertises or administers the
coverage in this state described in RCW 48.42.010 and which
is subject to an examination by the insurance commissioner
under RCW 48.42.030 shall advise any production agency of
the elements of the coverage, including the amount of "stoploss" insurance in effect. [1983 c 36 § 5.]
48.42.090
48.42.090 Prenatal testing—Limitation on changes to
coverage. The carrier or provider of any group disability
contract, health care services contract or health maintenance
agreement shall not cancel, reduce, limit or otherwise alter or
[Title 48 RCW—page 257]
48.42.100
Title 48 RCW: Insurance
change the coverage provided solely on the basis of the result
of any prenatal test. [1988 c 276 § 9.]
48.42.100
48.42.100 Women's health care services—Duties of
health care carriers. (1) For purposes of this section, health
care carriers includes disability insurers regulated under
chapter 48.20 or 48.21 RCW, health care services contractors
regulated under chapter 48.44 RCW, health maintenance
organizations regulated under chapter 48.46 RCW, plans
operating under the health care authority under chapter 41.05
RCW, the state health insurance pool operating under chapter
48.41 RCW, and insuring entities regulated under chapter
48.43 RCW.
(2) For purposes of this section and consistent with their
lawful scopes of practice, types of health care practitioners
that provide women's health care services shall include, but
need not be limited by a health care carrier to, the following:
Any generally recognized medical specialty of practitioners
licensed under chapter 18.57 or 18.71 RCW who provides
women's health care services; practitioners licensed under
chapters 18.57A and 18.71A RCW when providing women's
health care services; midwives licensed under chapter 18.50
RCW; and advanced registered nurse practitioner specialists
in women's health and midwifery under chapter 18.79 RCW.
(3) For purposes of this section, women's health care services shall include, but need not be limited by a health care
carrier to, the following: Maternity care; reproductive health
services; gynecological care; general examination; and preventive care as medically appropriate and medically appropriate follow-up visits for the services listed in this subsection.
(4) Health care carriers shall ensure that enrolled female
patients have direct access to timely and appropriate covered
women's health care services from the type of health care
practitioner of their choice in accordance with subsection (5)
of this section.
(5)(a) Health care carrier policies, plans, and programs
written, amended, or renewed after July 23, 1995, shall provide women patients with direct access to the type of health
care practitioner of their choice for appropriate covered
women's health care services without the necessity of prior
referral from another type of health care practitioner.
(b) Health care carriers may comply with this section by
including all the types of health care practitioners listed in
this section for women's health care services for women
patients.
(c) Nothing in this section shall prevent health care carriers from restricting women patients to seeing only health
care practitioners who have signed participating provider
agreements with the health care carrier. [2000 c 7 § 1; 1995
c 389 § 1.]
48.43.018
48.43.021
48.43.022
48.43.023
48.43.025
48.43.028
48.43.035
48.43.038
48.43.041
48.43.045
48.43.055
48.43.065
48.43.085
48.43.087
48.43.091
48.43.093
48.43.097
48.43.105
48.43.115
48.43.125
48.43.180
48.43.185
48.43.200
48.43.205
48.43.210
48.43.215
48.43.220
48.43.225
48.43.300
48.43.305
48.43.310
48.43.315
48.43.320
48.43.325
48.43.330
48.43.335
48.43.340
48.43.345
48.43.350
48.43.355
48.43.360
Chapter 48.43
Chapter 48.43 RCW
INSURANCE REFORM
(Formerly: Certified health plans)
Sections
48.43.001
48.43.005
48.43.012
48.43.015
Intent.
Definitions.
Individual health benefit plans—Preexisting conditions.
Health benefit plans—Preexisting conditions.
[Title 48 RCW—page 258]
48.43.365
48.43.366
48.43.370
48.43.500
48.43.505
48.43.510
48.43.515
Requirement to complete the standard health questionnaire—
Exemptions—Results.
Personally identifiable health information—Restrictions on
release.
Enrollee identification card—Social security number restriction.
Pharmacy identification cards—Rules.
Group health benefit plans—Preexisting conditions.
Eligibility to purchase certain health benefit plans—Small
employers and small groups.
Group health benefit plans—Guaranteed issue and continuity
of coverage—Exceptions—Group of one.
Individual health plans—Guarantee of continuity of coverage—Exceptions.
Individual health benefit plans—Mandatory benefits.
Health plan requirements—Annual reports—Exemptions.
Procedures for review and adjudication of health care provider
complaints—Requirements.
Right of individuals to receive services—Right of providers,
carriers, and facilities to refuse to participate in or pay for
services for reason of conscience or religion—Requirements.
Health carrier may not prohibit its enrollees from contracting
for services outside the health care plan.
Contracting for services at enrollee's expense—Mental health
care practitioner—Conditions—Exception.
Health carrier coverage of outpatient mental health services—
Requirements.
Health carrier coverage of emergency medical services—
Requirements—Conditions.
Filing of financial statements—Every health carrier.
Preparation of documents that compare health carriers—
Immunity—Due diligence.
Maternity services—Intent—Definitions—Patient preference—Clinical sovereignty of provider—Notice to policyholders—Application.
Coverage at a long-term care facility following hospitalization—Definition.
Denturist services.
General anesthesia services for dental procedures.
Disclosure of certain material transactions—Report—Information is confidential.
Material acquisitions or dispositions.
Asset acquisitions—Asset dispositions.
Report of a material acquisition or disposition of assets—
Information required.
Material nonrenewals, cancellations, or revisions of ceded
reinsurance agreements.
Report of a material nonrenewal, cancellation, or revision of
ceded reinsurance agreements—Information required.
Definitions.
Report of RBC levels—Distribution of report—Formula for
determination—Commissioner may make adjustments.
Company action level event—Required RBC plan—Commissioner's review—Notification—Challenge by carrier.
Regulatory action level event—Required RBC plan—Commissioner's review—Notification—Challenge by carrier.
Authorized control level event—Commissioner's options.
Mandatory control level event—Commissioner's duty—Regulatory control.
Carrier's right to hearing—Request by carrier—Date set by
commissioner.
Confidentiality of RBC reports and plans—Use of certain
comparisons prohibited—Certain information intended
solely for use by commissioner.
Powers or duties of commissioner not limited—Rules.
Foreign or alien carriers—Required RBC report—Commissioner may require RBC plan—Mandatory control level
event.
No liability or cause of action against commissioner or department.
Notice by commissioner to carrier—When effective.
Initial RBC reports—Calculation of initial RBC levels—Subsequent reports.
RBC report for 1998 calendar year.
Self-funded multiple employer welfare arrangements.
RBC standards not applicable to certain carriers.
Intent—Purpose—2000 c 5.
Requirement to protect enrollee's right to privacy or confidential services—Rules.
Carrier required to disclose health plan information—Marketing and advertising restrictions—Rules.
Access to appropriate health services—Enrollee options—
Rules.
(2004 Ed.)
Insurance Reform
48.43.520
48.43.525
48.43.530
48.43.535
48.43.540
48.43.545
48.43.550
48.43.901
48.43.902
48.43.903
Requirement to maintain a documented utilization review program description and written utilization review criteria—
Rules.
Prohibition against retrospective denial of health plan coverage—Rules.
Requirement for carriers to have a comprehensive grievance
process—Carrier's duties—Procedures—Appeals—Rules.
Independent review of health care disputes—System for using
certified independent review organizations—Rules.
Requirement to designate a licensed medical director—
Exemption.
Standard of care—Liability—Causes of action—Defense—
Exception.
Delegation of duties—Carrier accountability.
Captions not law—1996 c 312.
Effective date—1996 c 312.
Severability—1998 c 241.
48.43.001
48.43.001 Intent. It is the intent of the legislature to
ensure that all enrollees in managed care settings have access
to adequate information regarding health care services covered by health carriers' health plans, and provided by health
care providers and health care facilities. It is only through
such disclosure that Washington state citizens can be fully
informed as to the extent of health insurance coverage, availability of health care service options, and necessary treatment. With such information, citizens are able to make
knowledgeable decisions regarding their health care. [1996 c
312 § 1.]
48.43.005
48.43.005 Definitions. Unless otherwise specifically
provided, the definitions in this section apply throughout this
chapter.
(1) "Adjusted community rate" means the rating method
used to establish the premium for health plans adjusted to
reflect actuarially demonstrated differences in utilization or
cost attributable to geographic region, age, family size, and
use of wellness activities.
(2) "Basic health plan" means the plan described under
chapter 70.47 RCW, as revised from time to time.
(3) "Basic health plan model plan" means a health plan
as required in *RCW 70.47.060(2)(d).
(4) "Basic health plan services" means that schedule of
covered health services, including the description of how
those benefits are to be administered, that are required to be
delivered to an enrollee under the basic health plan, as
revised from time to time.
(5) "Catastrophic health plan" means:
(a) In the case of a contract, agreement, or policy covering a single enrollee, a health benefit plan requiring a calendar year deductible of, at a minimum, one thousand five hundred dollars and an annual out-of-pocket expense required to
be paid under the plan (other than for premiums) for covered
benefits of at least three thousand dollars; and
(b) In the case of a contract, agreement, or policy covering more than one enrollee, a health benefit plan requiring a
calendar year deductible of, at a minimum, three thousand
dollars and an annual out-of-pocket expense required to be
paid under the plan (other than for premiums) for covered
benefits of at least five thousand five hundred dollars; or
(c) Any health benefit plan that provides benefits for
hospital inpatient and outpatient services, professional and
prescription drugs provided in conjunction with such hospital
inpatient and outpatient services, and excludes or substan(2004 Ed.)
48.43.005
tially limits outpatient physician services and those services
usually provided in an office setting.
(6) "Certification" means a determination by a review
organization that an admission, extension of stay, or other
health care service or procedure has been reviewed and,
based on the information provided, meets the clinical requirements for medical necessity, appropriateness, level of care, or
effectiveness under the auspices of the applicable health benefit plan.
(7) "Concurrent review" means utilization review conducted during a patient's hospital stay or course of treatment.
(8) "Covered person" or "enrollee" means a person covered by a health plan including an enrollee, subscriber, policyholder, beneficiary of a group plan, or individual covered
by any other health plan.
(9) "Dependent" means, at a minimum, the enrollee's
legal spouse and unmarried dependent children who qualify
for coverage under the enrollee's health benefit plan.
(10) "Eligible employee" means an employee who works
on a full-time basis with a normal work week of thirty or
more hours. The term includes a self-employed individual,
including a sole proprietor, a partner of a partnership, and
may include an independent contractor, if the self-employed
individual, sole proprietor, partner, or independent contractor
is included as an employee under a health benefit plan of a
small employer, but does not work less than thirty hours per
week and derives at least seventy-five percent of his or her
income from a trade or business through which he or she has
attempted to earn taxable income and for which he or she has
filed the appropriate internal revenue service form. Persons
covered under a health benefit plan pursuant to the consolidated omnibus budget reconciliation act of 1986 shall not be
considered eligible employees for purposes of minimum participation requirements of chapter 265, Laws of 1995.
(11) "Emergency medical condition" means the emergent and acute onset of a symptom or symptoms, including
severe pain, that would lead a prudent layperson acting reasonably to believe that a health condition exists that requires
immediate medical attention, if failure to provide medical
attention would result in serious impairment to bodily functions or serious dysfunction of a bodily organ or part, or
would place the person's health in serious jeopardy.
(12) "Emergency services" means otherwise covered
health care services medically necessary to evaluate and treat
an emergency medical condition, provided in a hospital
emergency department.
(13) "Enrollee point-of-service cost-sharing" means
amounts paid to health carriers directly providing services,
health care providers, or health care facilities by enrollees
and may include copayments, coinsurance, or deductibles.
(14) "Grievance" means a written complaint submitted
by or on behalf of a covered person regarding: (a) Denial of
payment for medical services or nonprovision of medical services included in the covered person's health benefit plan, or
(b) service delivery issues other than denial of payment for
medical services or nonprovision of medical services, including dissatisfaction with medical care, waiting time for medical services, provider or staff attitude or demeanor, or dissatisfaction with service provided by the health carrier.
(15) "Health care facility" or "facility" means hospices
licensed under chapter 70.127 RCW, hospitals licensed under
[Title 48 RCW—page 259]
48.43.005
Title 48 RCW: Insurance
chapter 70.41 RCW, rural health care facilities as defined in
RCW 70.175.020, psychiatric hospitals licensed under chapter 71.12 RCW, nursing homes licensed under chapter 18.51
RCW, community mental health centers licensed under chapter 71.05 or 71.24 RCW, kidney disease treatment centers
licensed under chapter 70.41 RCW, ambulatory diagnostic,
treatment, or surgical facilities licensed under chapter 70.41
RCW, drug and alcohol treatment facilities licensed under
chapter 70.96A RCW, and home health agencies licensed
under chapter 70.127 RCW, and includes such facilities if
owned and operated by a political subdivision or instrumentality of the state and such other facilities as required by federal law and implementing regulations.
(16) "Health care provider" or "provider" means:
(a) A person regulated under Title 18 or chapter 70.127
RCW, to practice health or health-related services or otherwise practicing health care services in this state consistent
with state law; or
(b) An employee or agent of a person described in (a) of
this subsection, acting in the course and scope of his or her
employment.
(17) "Health care service" means that service offered or
provided by health care facilities and health care providers
relating to the prevention, cure, or treatment of illness, injury,
or disease.
(18) "Health carrier" or "carrier" means a disability
insurer regulated under chapter 48.20 or 48.21 RCW, a health
care service contractor as defined in RCW 48.44.010, or a
health maintenance organization as defined in RCW
48.46.020.
(19) "Health plan" or "health benefit plan" means any
policy, contract, or agreement offered by a health carrier to
provide, arrange, reimburse, or pay for health care services
except the following:
(a) Long-term care insurance governed by chapter 48.84
RCW;
(b) Medicare supplemental health insurance governed by
chapter 48.66 RCW;
(c) Limited health care services offered by limited health
care service contractors in accordance with RCW 48.44.035;
(d) Disability income;
(e) Coverage incidental to a property/casualty liability
insurance policy such as automobile personal injury protection coverage and homeowner guest medical;
(f) Workers' compensation coverage;
(g) Accident only coverage;
(h) Specified disease and hospital confinement indemnity when marketed solely as a supplement to a health plan;
(i) Employer-sponsored self-funded health plans;
(j) Dental only and vision only coverage; and
(k) Plans deemed by the insurance commissioner to have
a short-term limited purpose or duration, or to be a studentonly plan that is guaranteed renewable while the covered person is enrolled as a regular full-time undergraduate or graduate student at an accredited higher education institution, after
a written request for such classification by the carrier and
subsequent written approval by the insurance commissioner.
(20) "Material modification" means a change in the actuarial value of the health plan as modified of more than five
percent but less than fifteen percent.
[Title 48 RCW—page 260]
(21) "Preexisting condition" means any medical condition, illness, or injury that existed any time prior to the effective date of coverage.
(22) "Premium" means all sums charged, received, or
deposited by a health carrier as consideration for a health plan
or the continuance of a health plan. Any assessment or any
"membership," "policy," "contract," "service," or similar fee
or charge made by a health carrier in consideration for a
health plan is deemed part of the premium. "Premium" shall
not include amounts paid as enrollee point-of-service costsharing.
(23) "Review organization" means a disability insurer
regulated under chapter 48.20 or 48.21 RCW, health care service contractor as defined in RCW 48.44.010, or health maintenance organization as defined in RCW 48.46.020, and entities affiliated with, under contract with, or acting on behalf of
a health carrier to perform a utilization review.
(24) "Small employer" or "small group" means any person, firm, corporation, partnership, association, political subdivision, sole proprietor, or self-employed individual that is
actively engaged in business that, on at least fifty percent of
its working days during the preceding calendar quarter,
employed at least two but no more than fifty eligible employees, with a normal work week of thirty or more hours, the
majority of whom were employed within this state, and is not
formed primarily for purposes of buying health insurance and
in which a bona fide employer-employee relationship exists.
In determining the number of eligible employees, companies
that are affiliated companies, or that are eligible to file a combined tax return for purposes of taxation by this state, shall be
considered an employer. Subsequent to the issuance of a
health plan to a small employer and for the purpose of determining eligibility, the size of a small employer shall be determined annually. Except as otherwise specifically provided, a
small employer shall continue to be considered a small
employer until the plan anniversary following the date the
small employer no longer meets the requirements of this definition. A self-employed individual or sole proprietor must
derive at least seventy-five percent of his or her income from
a trade or business through which the individual or sole proprietor has attempted to earn taxable income and for which he
or she has filed the appropriate internal revenue service form
1040, schedule C or F, for the previous taxable year except
for a self-employed individual or sole proprietor in an agricultural trade or business, who must derive at least fifty-one
percent of his or her income from the trade or business
through which the individual or sole proprietor has attempted
to earn taxable income and for which he or she has filed the
appropriate internal revenue service form 1040, for the previous taxable year. A self-employed individual or sole proprietor who is covered as a group of one on the day prior to June
10, 2004, shall also be considered a "small employer" to the
extent that individual or group of one is entitled to have his or
her coverage renewed as provided in RCW 48.43.035(6).
(25) "Utilization review" means the prospective, concurrent, or retrospective assessment of the necessity and appropriateness of the allocation of health care resources and services of a provider or facility, given or proposed to be given
to an enrollee or group of enrollees.
(26) "Wellness activity" means an explicit program of an
activity consistent with department of health guidelines, such
(2004 Ed.)
Insurance Reform
as, smoking cessation, injury and accident prevention, reduction of alcohol misuse, appropriate weight reduction, exercise, automobile and motorcycle safety, blood cholesterol
reduction, and nutrition education for the purpose of improving enrollee health status and reducing health service costs.
[2004 c 244 § 2. Prior: 2001 c 196 § 5; 2001 c 147 § 1; 2000
c 79 § 18; prior: 1997 c 231 § 202; 1997 c 55 § 1; 1995 c 265
§ 4.]
*Reviser's note: RCW 70.47.060 was amended by 2004 c 192 § 3,
changing subsection (2)(d) to subsection (2)(e), effective January 1, 2005.
Application—2004 c 244: See note following RCW 48.21.045.
Effective date—2001 c 196: See note following RCW 48.20.025.
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
Short title—1997 c 231: "This act shall be known as the consumer
assistance and insurance market stabilization act." [1997 c 231 § 402.]
Part headings and captions not law—1997 c 231: "Part headings and
section captions used in this act are not part of the law." [1997 c 231 § 403.]
Severability—1997 c 231: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1997 c 231 § 404.]
Effective dates—1997 c 231: "(1) Sections 104 through 108 and 301 of
this act take effect January 1, 1998.
(2) Section 111 of this act is necessary for the immediate preservation
of the public peace, health, or safety, or support of the state government and
its existing public institutions, and takes effect July 1, 1997.
(3) Section 205 of this act is necessary for the immediate preservation
of the public peace, health, or safety, or support of the state government and
its existing public institutions, and takes effect immediately." [1997 c 231 §
405.]
Effective date—1997 c 55: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[April 16, 1997]." [1997 c 55 § 2.]
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
48.43.012 Individual health benefit plans—Preexisting conditions. (1) No carrier may reject an individual for an
individual health benefit plan based upon preexisting conditions of the individual except as provided in RCW 48.43.018.
(2) No carrier may deny, exclude, or otherwise limit coverage for an individual's preexisting health conditions except
as provided in this section.
(3) For an individual health benefit plan originally issued
on or after March 23, 2000, preexisting condition waiting
periods imposed upon a person enrolling in an individual
health benefit plan shall be no more than nine months for a
preexisting condition for which medical advice was given,
for which a health care provider recommended or provided
treatment, or for which a prudent layperson would have
sought advice or treatment, within six months prior to the
effective date of the plan. No carrier may impose a preexisting condition waiting period on an individual health benefit
plan issued to an eligible individual as defined in section
2741(b) of the federal health insurance portability and
accountability act of 1996 (42 U.S.C. 300gg-41(b)).
(4) Individual health benefit plan preexisting condition
waiting periods shall not apply to prenatal care services.
(5) No carrier may avoid the requirements of this section
through the creation of a new rate classification or the modification of an existing rate classification. A new or changed
rate classification will be deemed an attempt to avoid the pro48.43.012
(2004 Ed.)
48.43.015
visions of this section if the new or changed classification
would substantially discourage applications for coverage
from individuals who are higher than average health risks.
These provisions apply only to individuals who are Washington residents. [2001 c 196 § 6; 2000 c 79 § 19.]
Effective date—2001 c 196: See note following RCW 48.20.025.
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
48.43.015
48.43.015 Health benefit plans—Preexisting conditions. (Effective until January 1, 2005.) (1) For a health
benefit plan offered to a group, every health carrier shall
reduce any preexisting condition exclusion, limitation, or
waiting period in the group health plan in accordance with the
provisions of section 2701 of the federal health insurance
portability and accountability act of 1996 (42 U.S.C. Sec.
300gg).
(2) For a health benefit plan offered to a group other than
a small group:
(a) If the individual applicant's immediately preceding
health plan coverage terminated during the period beginning
ninety days and ending sixty-four days before the date of
application for the new plan and such coverage was similar
and continuous for at least three months, then the carrier shall
not impose a waiting period for coverage of preexisting conditions under the new health plan.
(b) If the individual applicant's immediately preceding
health plan coverage terminated during the period beginning
ninety days and ending sixty-four days before the date of
application for the new plan and such coverage was similar
and continuous for less than three months, then the carrier
shall credit the time covered under the immediately preceding health plan toward any preexisting condition waiting
period under the new health plan.
(c) For the purposes of this subsection, a preceding
health plan includes an employer-provided self-funded health
plan and plans of the Washington state health insurance pool.
(3) For a health benefit plan offered to a small group:
(a) If the individual applicant's immediately preceding
health plan coverage terminated during the period beginning
ninety days and ending sixty-four days before the date of
application for the new plan and such coverage was similar
and continuous for at least nine months, then the carrier shall
not impose a waiting period for coverage of preexisting conditions under the new health plan.
(b) If the individual applicant's immediately preceding
health plan coverage terminated during the period beginning
ninety days and ending sixty-four days before the date of
application for the new plan and such coverage was similar
and continuous for less than nine months, then the carrier
shall credit the time covered under the immediately preceding health plan toward any preexisting condition waiting
period under the new health plan.
(c) For the purpose of this subsection, a preceding health
plan includes an employer-provided self-funded health plan
and plans of the Washington state health insurance pool.
(4) For a health benefit plan offered to an individual,
other than an individual to whom subsection (5) of this section applies, every health carrier shall credit any preexisting
condition waiting period in that plan for a person who was
enrolled at any time during the sixty-three day period imme[Title 48 RCW—page 261]
48.43.015
Title 48 RCW: Insurance
diately preceding the date of application for the new health
plan in a group health benefit plan or an individual health
benefit plan, other than a catastrophic health plan, and (a) the
benefits under the previous plan provide equivalent or greater
overall benefit coverage than that provided in the health benefit plan the individual seeks to purchase; or (b) the person is
seeking an individual health benefit plan due to his or her
change of residence from one geographic area in Washington
state to another geographic area in Washington state where
his or her current health plan is not offered, if application for
coverage is made within ninety days of relocation; or (c) the
person is seeking an individual health benefit plan: (i)
Because a health care provider with whom he or she has an
established care relationship and from whom he or she has
received treatment within the past twelve months is no longer
part of the carrier's provider network under his or her existing
Washington individual health benefit plan; and (ii) his or her
health care provider is part of another carrier's provider network; and (iii) application for a health benefit plan under that
carrier's provider network individual coverage is made within
ninety days of his or her provider leaving the previous carrier's provider network. The carrier must credit the period of
coverage the person was continuously covered under the
immediately preceding health plan toward the waiting period
of the new health plan. For the purposes of this subsection
(4), a preceding health plan includes an employer-provided
self-funded health plan and plans of the Washington state
health insurance pool.
(5) Every health carrier shall waive any preexisting condition waiting period in its individual plans for a person who
is an eligible individual as defined in section 2741(b) of the
federal health insurance portability and accountability act of
1996 (42 U.S.C. Sec. 300gg-41(b)).
(6) Subject to the provisions of subsections (1) through
(5) of this section, nothing contained in this section requires a
health carrier to amend a health plan to provide new benefits
in its existing health plans. In addition, nothing in this section
requires a carrier to waive benefit limitations not related to an
individual or group's preexisting conditions or health history.
[2001 c 196 § 7; 2000 c 80 § 3; 2000 c 79 § 20; 1995 c 265 §
5.]
Effective date—2001 c 196: See note following RCW 48.20.025.
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
48.43.015
48.43.015 Health benefit plans—Preexisting conditions. (Effective January 1, 2005.) (1) For a health benefit
plan offered to a group, every health carrier shall reduce any
preexisting condition exclusion, limitation, or waiting period
in the group health plan in accordance with the provisions of
section 2701 of the federal health insurance portability and
accountability act of 1996 (42 U.S.C. Sec. 300gg).
(2) For a health benefit plan offered to a group other than
a small group:
(a) If the individual applicant's immediately preceding
health plan coverage terminated during the period beginning
ninety days and ending sixty-four days before the date of
application for the new plan and such coverage was similar
and continuous for at least three months, then the carrier shall
[Title 48 RCW—page 262]
not impose a waiting period for coverage of preexisting conditions under the new health plan.
(b) If the individual applicant's immediately preceding
health plan coverage terminated during the period beginning
ninety days and ending sixty-four days before the date of
application for the new plan and such coverage was similar
and continuous for less than three months, then the carrier
shall credit the time covered under the immediately preceding health plan toward any preexisting condition waiting
period under the new health plan.
(c) For the purposes of this subsection, a preceding
health plan includes an employer-provided self-funded health
plan, the basic health plan's offering to health coverage tax
credit eligible enrollees as established by chapter 192, Laws
of 2004, and plans of the Washington state health insurance
pool.
(3) For a health benefit plan offered to a small group:
(a) If the individual applicant's immediately preceding
health plan coverage terminated during the period beginning
ninety days and ending sixty-four days before the date of
application for the new plan and such coverage was similar
and continuous for at least nine months, then the carrier shall
not impose a waiting period for coverage of preexisting conditions under the new health plan.
(b) If the individual applicant's immediately preceding
health plan coverage terminated during the period beginning
ninety days and ending sixty-four days before the date of
application for the new plan and such coverage was similar
and continuous for less than nine months, then the carrier
shall credit the time covered under the immediately preceding health plan toward any preexisting condition waiting
period under the new health plan.
(c) For the purpose of this subsection, a preceding health
plan includes an employer-provided self-funded health plan,
the basic health plan's offering to health coverage tax credit
eligible enrollees as established by chapter 192, Laws of
2004, and plans of the Washington state health insurance
pool.
(4) For a health benefit plan offered to an individual,
other than an individual to whom subsection (5) of this section applies, every health carrier shall credit any preexisting
condition waiting period in that plan for a person who was
enrolled at any time during the sixty-three day period immediately preceding the date of application for the new health
plan in a group health benefit plan or an individual health
benefit plan, other than a catastrophic health plan, and (a) the
benefits under the previous plan provide equivalent or greater
overall benefit coverage than that provided in the health benefit plan the individual seeks to purchase; or (b) the person is
seeking an individual health benefit plan due to his or her
change of residence from one geographic area in Washington
state to another geographic area in Washington state where
his or her current health plan is not offered, if application for
coverage is made within ninety days of relocation; or (c) the
person is seeking an individual health benefit plan: (i)
Because a health care provider with whom he or she has an
established care relationship and from whom he or she has
received treatment within the past twelve months is no longer
part of the carrier's provider network under his or her existing
Washington individual health benefit plan; and (ii) his or her
health care provider is part of another carrier's provider net(2004 Ed.)
Insurance Reform
work; and (iii) application for a health benefit plan under that
carrier's provider network individual coverage is made within
ninety days of his or her provider leaving the previous carrier's provider network. The carrier must credit the period of
coverage the person was continuously covered under the
immediately preceding health plan toward the waiting period
of the new health plan. For the purposes of this subsection
(4), a preceding health plan includes an employer-provided
self-funded health plan, the basic health plan's offering to
health coverage tax credit eligible enrollees as established by
chapter 192, Laws of 2004, and plans of the Washington state
health insurance pool.
(5) Every health carrier shall waive any preexisting condition waiting period in its individual plans for a person who
is an eligible individual as defined in section 2741(b) of the
federal health insurance portability and accountability act of
1996 (42 U.S.C. Sec. 300gg-41(b)).
(6) Subject to the provisions of subsections (1) through
(5) of this section, nothing contained in this section requires a
health carrier to amend a health plan to provide new benefits
in its existing health plans. In addition, nothing in this section requires a carrier to waive benefit limitations not related
to an individual or group's preexisting conditions or health
history. [2004 c 192 § 5; 2001 c 196 § 7; 2000 c 80 § 3; 2000
c 79 § 20; 1995 c 265 § 5.]
Effective date—2004 c 192: See note following RCW 70.47.020.
Effective date—2001 c 196: See note following RCW 48.20.025.
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
48.43.018
48.43.018 Requirement to complete the standard
health questionnaire—Exemptions—Results. (1) Except
as provided in (a) through (e) of this subsection, a health carrier may require any person applying for an individual health
benefit plan to complete the standard health questionnaire
designated under chapter 48.41 RCW.
(a) If a person is seeking an individual health benefit
plan due to his or her change of residence from one geographic area in Washington state to another geographic area
in Washington state where his or her current health plan is not
offered, completion of the standard health questionnaire shall
not be a condition of coverage if application for coverage is
made within ninety days of relocation.
(b) If a person is seeking an individual health benefit
plan:
(i) Because a health care provider with whom he or she
has an established care relationship and from whom he or she
has received treatment within the past twelve months is no
longer part of the carrier's provider network under his or her
existing Washington individual health benefit plan; and
(ii) His or her health care provider is part of another carrier's provider network; and
(iii) Application for a health benefit plan under that carrier's provider network individual coverage is made within
ninety days of his or her provider leaving the previous carrier's provider network; then completion of the standard
health questionnaire shall not be a condition of coverage.
(c) If a person is seeking an individual health benefit
plan due to his or her having exhausted continuation cover(2004 Ed.)
48.43.018
age provided under 29 U.S.C. Sec. 1161 et seq., completion
of the standard health questionnaire shall not be a condition
of coverage if application for coverage is made within ninety
days of exhaustion of continuation coverage. A health carrier
shall accept an application without a standard health questionnaire from a person currently covered by such continuation coverage if application is made within ninety days prior
to the date the continuation coverage would be exhausted and
the effective date of the individual coverage applied for is the
date the continuation coverage would be exhausted, or within
ninety days thereafter.
(d) If a person is seeking an individual health benefit
plan due to his or her receiving notice that his or her coverage
under a conversion contract is discontinued, completion of
the standard health questionnaire shall not be a condition of
coverage if application for coverage is made within ninety
days of discontinuation of eligibility under the conversion
contract. A health carrier shall accept an application without
a standard health questionnaire from a person currently covered by such conversion contract if application is made
within ninety days prior to the date eligibility under the conversion contract would be discontinued and the effective date
of the individual coverage applied for is the date eligibility
under the conversion contract would be discontinued, or
within ninety days thereafter.
(e) If a person is seeking an individual health benefit
plan and, but for the number of persons employed by his or
her employer, would have qualified for continuation coverage provided under 29 U.S.C. Sec. 1161 et seq., completion
of the standard health questionnaire shall not be a condition
of coverage if: (i) Application for coverage is made within
ninety days of a qualifying event as defined in 29 U.S.C. Sec.
1163; and (ii) the person had at least twenty-four months of
continuous group coverage immediately prior to the qualifying event. A health carrier shall accept an application without a standard health questionnaire from a person with at least
twenty-four months of continuous group coverage if application is made no more than ninety days prior to the date of a
qualifying event and the effective date of the individual coverage applied for is the date of the qualifying event, or within
ninety days thereafter.
(2) If, based upon the results of the standard health questionnaire, the person qualifies for coverage under the Washington state health insurance pool, the following shall apply:
(a) The carrier may decide not to accept the person's
application for enrollment in its individual health benefit
plan; and
(b) Within fifteen business days of receipt of a completed application, the carrier shall provide written notice of
the decision not to accept the person's application for enrollment to both the person and the administrator of the Washington state health insurance pool. The notice to the person
shall state that the person is eligible for health insurance provided by the Washington state health insurance pool, and
shall include information about the Washington state health
insurance pool and an application for such coverage. If the
carrier does not provide or postmark such notice within fifteen business days, the application is deemed approved.
(3) If the person applying for an individual health benefit
plan: (a) Does not qualify for coverage under the Washington state health insurance pool based upon the results of the
[Title 48 RCW—page 263]
48.43.021
Title 48 RCW: Insurance
standard health questionnaire; (b) does qualify for coverage
under the Washington state health insurance pool based upon
the results of the standard health questionnaire and the carrier
elects to accept the person for enrollment; or (c) is not
required to complete the standard health questionnaire designated under this chapter under subsection (1)(a) or (b) of this
section, the carrier shall accept the person for enrollment if he
or she resides within the carrier's service area and provide or
assure the provision of all covered services regardless of age,
sex, family structure, ethnicity, race, health condition, geographic location, employment status, socioeconomic status,
other condition or situation, or the provisions of RCW
49.60.174(2). The commissioner may grant a temporary
exemption from this subsection if, upon application by a
health carrier, the commissioner finds that the clinical, financial, or administrative capacity to serve existing enrollees
will be impaired if a health carrier is required to continue
enrollment of additional eligible individuals. [2004 c 244 §
3; 2001 c 196 § 8; 2000 c 80 § 4; 2000 c 79 § 21.]
Application—2004 c 244: See note following RCW 48.21.045.
Effective date—2001 c 196: See note following RCW 48.20.025.
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
48.43.021
48.43.021 Personally identifiable health information—Restrictions on release. Except as otherwise required
by statute or rule, a carrier and the Washington state health
insurance pool, and persons acting at the direction of or on
behalf of a carrier or the pool, who are in receipt of an
enrollee's or applicant's personally identifiable health information included in the standard health questionnaire shall not
disclose the identifiable health information unless such disclosure is explicitly authorized in writing by the person who
is the subject of the information. [2000 c 79 § 22.]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
48.43.022
48.43.022 Enrollee identification card—Social security number restriction. After December 31, 2005, a health
carrier that issues a card identifying a person as an enrollee,
and requires the person to present the card to providers for
purposes of claims processing, may not display on the card an
identification number that includes more than a four-digit
portion of the person's complete social security number.
[2004 c 115 § 1.]
48.43.023
48.43.023 Pharmacy identification cards—Rules. (1)
A health carrier that provides coverage for prescription drugs
provided on an outpatient basis and issues a card or other
technology for claims processing, or an administrator of a
health benefit plan including, but not limited to, third-party
administrators for self-insured plans, pharmacy benefits managers, and state administered plans, shall issue to its enrollees
a pharmacy identification card or other technology containing all information required for proper prescription drug
claims adjudication.
(2) Upon renewal of the health benefit plan, information
on the pharmacy identification card or other technology shall
be made current by the health carrier or other entity that
issues the card.
[Title 48 RCW—page 264]
(3) Nothing in this section shall be construed to require
any health carrier or administrator of a health benefit plan to
issue a pharmacy identification card or other technology separate from another identification card issued to an enrollee
under the health benefit plan if the identification card contains all of the information required under subsection (1) of
this section.
(4) This section applies to health benefit plans that are
delivered, issued for delivery, or renewed on or after July 1,
2003. For the purposes of this section, renewal of a health
benefit policy, contract, or plan occurs on each anniversary of
the date on which coverage was first effective on the person
or persons covered by the health benefit plan.
(5) The insurance commissioner may adopt rules to
implement chapter 106, Laws of 2001, taking into consideration any relevant standards developed by the national council for prescription drug programs and the requirements of the
federal health insurance portability and accountability act of
1996. [2001 c 106 § 2.]
Intent—2001 c 106: "It is the intent of the legislature to improve care
to patients by minimizing confusion, eliminating unnecessary paperwork,
decreasing administrative burdens, and streamlining dispensing of prescription products paid for by third-party payors." [2001 c 106 § 1.]
48.43.025
48.43.025 Group health benefit plans—Preexisting
conditions. (1) For group health benefit plans for groups
other than small groups, no carrier may reject an individual
for health plan coverage based upon preexisting conditions of
the individual and no carrier may deny, exclude, or otherwise
limit coverage for an individual's preexisting health conditions; except that a carrier may impose a three-month benefit
waiting period for preexisting conditions for which medical
advice was given, or for which a health care provider recommended or provided treatment within three months before the
effective date of coverage. Any preexisting condition waiting
period or limitation relating to pregnancy as a preexisting
condition shall be imposed only to the extent allowed in the
federal health insurance portability and accountability act of
1996.
(2) For group health benefit plans for small groups, no
carrier may reject an individual for health plan coverage
based upon preexisting conditions of the individual and no
carrier may deny, exclude, or otherwise limit coverage for an
individual's preexisting health conditions. Except that a carrier may impose a nine-month benefit waiting period for preexisting conditions for which medical advice was given, or
for which a health care provider recommended or provided
treatment within six months before the effective date of coverage. Any preexisting condition waiting period or limitation
relating to pregnancy as a preexisting condition shall be
imposed only to the extent allowed in the federal health insurance portability and accountability act of 1996.
(3) No carrier may avoid the requirements of this section
through the creation of a new rate classification or the modification of an existing rate classification. A new or changed
rate classification will be deemed an attempt to avoid the provisions of this section if the new or changed classification
would substantially discourage applications for coverage
from individuals or groups who are higher than average
health risks. These provisions apply only to individuals who
(2004 Ed.)
Insurance Reform
are Washington residents. [2001 c 196 § 9; 2000 c 79 § 23;
1995 c 265 § 6.]
Effective date—2001 c 196: See note following RCW 48.20.025.
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
48.43.028
48.43.028 Eligibility to purchase certain health benefit plans—Small employers and small groups. To the
extent required of the federal health insurance portability and
accountability act of 1996, the eligibility of an employer or
group to purchase a health benefit plan set forth in RCW
48.21.045(1)(b), 48.44.023(1)(b), and 48.46.066(1)(b) must
be extended to all small employers and small groups as
defined in RCW 48.43.005. [2001 c 196 § 10.]
Effective date—2001 c 196: See note following RCW 48.20.025.
48.43.035
48.43.035 Group health benefit plans—Guaranteed
issue and continuity of coverage—Exceptions—Group of
one. For group health benefit plans, the following shall
apply:
(1) All health carriers shall accept for enrollment any
state resident within the group to whom the plan is offered
and within the carrier's service area and provide or assure the
provision of all covered services regardless of age, sex, family structure, ethnicity, race, health condition, geographic
location, employment status, socioeconomic status, other
c o n di tio n o r s itu a t io n, or th e p r ov i si on s o f RC W
49.60.174(2). The insurance commissioner may grant a temporary exemption from this subsection, if, upon application
by a health carrier the commissioner finds that the clinical,
financial, or administrative capacity to serve existing enrollees will be impaired if a health carrier is required to continue
enrollment of additional eligible individuals.
(2) Except as provided in subsection (5) of this section,
all health plans shall contain or incorporate by endorsement a
guarantee of the continuity of coverage of the plan. For the
purposes of this section, a plan is "renewed" when it is continued beyond the earliest date upon which, at the carrier's
sole option, the plan could have been terminated for other
than nonpayment of premium. The carrier may consider the
group's anniversary date as the renewal date for purposes of
complying with the provisions of this section.
(3) The guarantee of continuity of coverage required in
health plans shall not prevent a carrier from canceling or nonrenewing a health plan for:
(a) Nonpayment of premium;
(b) Violation of published policies of the carrier
approved by the insurance commissioner;
(c) Covered persons entitled to become eligible for medicare benefits by reason of age who fail to apply for a medicare supplement plan or medicare cost, risk, or other plan
offered by the carrier pursuant to federal laws and regulations;
(d) Covered persons who fail to pay any deductible or
copayment amount owed to the carrier and not the provider of
health care services;
(e) Covered persons committing fraudulent acts as to the
carrier;
(2004 Ed.)
48.43.035
(f) Covered persons who materially breach the health
plan; or
(g) Change or implementation of federal or state laws
that no longer permit the continued offering of such coverage.
(4) The provisions of this section do not apply in the following cases:
(a) A carrier has zero enrollment on a product;
(b) A carrier replaces a product and the replacement
product is provided to all covered persons within that class or
line of business, includes all of the services covered under the
replaced product, and does not significantly limit access to
the kind of services covered under the replaced product. The
health plan may also allow unrestricted conversion to a fully
comparable product;
(c) No sooner than January 1, 2005, a carrier discontinues offering a particular type of health benefit plan offered
for groups of up to two hundred if: (i) The carrier provides
notice to each group of the discontinuation at least ninety
days prior to the date of the discontinuation; (ii) the carrier
offers to each group provided coverage of this type the option
to enroll, with regard to small employer groups, in any other
small employer group plan, or with regard to groups of up to
two hundred, in any other applicable group plan, currently
being offered by the carrier in the applicable group market;
and (iii) in exercising the option to discontinue coverage of
this type and in offering the option of coverage under (c)(ii)
of this subsection, the carrier acts uniformly without regard to
any health status-related factor of enrolled individuals or
individuals who may become eligible for this coverage;
(d) A carrier discontinues offering all health coverage in
the small group market or for groups of up to two hundred, or
both markets, in the state and discontinues coverage under all
existing group health benefit plans in the applicable market
involved if: (i) The carrier provides notice to the commissioner of its intent to discontinue offering all such coverage in
the state and its intent to discontinue coverage under all such
existing health benefit plans at least one hundred eighty days
prior to the date of the discontinuation of coverage under all
such existing health benefit plans; and (ii) the carrier provides notice to each covered group of the intent to discontinue the existing health benefit plan at least one hundred
eighty days prior to the date of discontinuation. In the case of
discontinuation under this subsection, the carrier may not
issue any group health coverage in this state in the applicable
group market involved for a five-year period beginning on
the date of the discontinuation of the last health benefit plan
not so renewed. This subsection (4) does not require a carrier
to provide notice to the commissioner of its intent to discontinue offering a health benefit plan to new applicants when
the carrier does not discontinue coverage of existing enrollees under that health benefit plan; or
(e) A carrier is withdrawing from a service area or from
a segment of its service area because the carrier has demonstrated to the insurance commissioner that the carrier's clinical, financial, or administrative capacity to serve enrollees
would be exceeded.
(5) The provisions of this section do not apply to health
plans deemed by the insurance commissioner to be unique or
limited or have a short-term purpose, after a written request
[Title 48 RCW—page 265]
48.43.038
Title 48 RCW: Insurance
for such classification by the carrier and subsequent written
approval by the insurance commissioner.
(6) Notwithstanding any other provision of this section,
the guarantee of continuity of coverage applies to a group of
one only if: (a) The carrier continues to offer any other small
employer group plan in which the group of one was eligible
to enroll on the day prior to June 10, 2004; and (b) the person
continues to qualify as a group of one under the criteria in
place on the day prior to June 10, 2004. [2004 c 244 § 4;
2000 c 79 § 24; 1995 c 265 § 7.]
Application—2004 c 244: See note following RCW 48.21.045.
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
48.43.038 Individual health plans—Guarantee of
continuity of coverage—Exceptions. (1) Except as provided in subsection (4) of this section, all individual health
plans shall contain or incorporate by endorsement a guarantee of the continuity of coverage of the plan. For the purposes
of this section, a plan is "renewed" when it is continued
beyond the earliest date upon which, at the carrier's sole
option, the plan could have been terminated for other than
nonpayment of premium.
(2) The guarantee of continuity of coverage required in
individual health plans shall not prevent a carrier from canceling or nonrenewing a health plan for:
(a) Nonpayment of premium;
(b) Violation of published policies of the carrier
approved by the commissioner;
(c) Covered persons entitled to become eligible for medicare benefits by reason of age who fail to apply for a medicare supplement plan or medicare cost, risk, or other plan
offered by the carrier pursuant to federal laws and regulations;
(d) Covered persons who fail to pay any deductible or
copayment amount owed to the carrier and not the provider of
health care services;
(e) Covered persons committing fraudulent acts as to the
carrier;
(f) Covered persons who materially breach the health
plan; or
(g) Change or implementation of federal or state laws
that no longer permit the continued offering of such coverage.
(3) This section does not apply in the following cases:
(a) A carrier has zero enrollment on a product;
(b) A carrier is withdrawing from a service area or from
a segment of its service area because the carrier has demonstrated to the commissioner that the carrier's clinical, financial, or administrative capacity to serve enrollees would be
exceeded;
(c) No sooner than the first day of the month following
the expiration of a one hundred eighty-day period beginning
on March 23, 2000, a carrier discontinues offering a particular type of health benefit plan offered in the individual market
if: (i) The carrier provides notice to each covered individual
provided coverage of this type of such discontinuation at
least ninety days prior to the date of the discontinuation; (ii)
the carrier offers to each individual provided coverage of this
48.43.038
[Title 48 RCW—page 266]
type the option, without being subject to the standard health
questionnaire, to enroll in any other individual health benefit
plan currently being offered by the carrier; and (iii) in exercising the option to discontinue coverage of this type and in
offering the option of coverage under (c)(ii) of this subsection, the carrier acts uniformly without regard to any health
status-related factor of enrolled individuals or individuals
who may become eligible for such coverage; or
(d) A carrier discontinues offering all individual health
coverage in the state and discontinues coverage under all
existing individual health benefit plans if: (i) The carrier provides notice to the commissioner of its intent to discontinue
offering all individual health coverage in the state and its
intent to discontinue coverage under all existing health benefit plans at least one hundred eighty days prior to the date of
the discontinuation of coverage under all existing health benefit plans; and (ii) the carrier provides notice to each covered
individual of the intent to discontinue his or her existing
health benefit plan at least one hundred eighty days prior to
the date of such discontinuation. In the case of discontinuation under this subsection, the carrier may not issue any individual health coverage in this state for a five-year period
beginning on the date of the discontinuation of the last health
plan not so renewed. Nothing in this subsection (3) shall be
construed to require a carrier to provide notice to the commissioner of its intent to discontinue offering a health benefit
plan to new applicants where the carrier does not discontinue
coverage of existing enrollees under that health benefit plan.
(4) The provisions of this section do not apply to health
plans deemed by the commissioner to be unique or limited or
have a short-term purpose, after a written request for such
classification by the carrier and subsequent written approval
by the commissioner. [2000 c 79 § 25.]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
48.43.041
48.43.041 Individual health benefit plans—Mandatory benefits. (1) All individual health benefit plans, other
than catastrophic health plans, offered or renewed on or after
October 1, 2000, shall include benefits described in this section. Nothing in this section shall be construed to require a
carrier to offer an individual health benefit plan.
(a) Maternity services that include, with no enrollee costsharing requirements beyond those generally applicable costsharing requirements: Diagnosis of pregnancy; prenatal care;
delivery; care for complications of pregnancy; physician services; hospital services; operating or other special procedure
rooms; radiology and laboratory services; appropriate medications; anesthesia; and services required under RCW
48.43.115; and
(b) Prescription drug benefits with at least a two thousand dollar benefit payable by the carrier annually.
(2) If a carrier offers a health benefit plan that is not a
catastrophic health plan to groups, and it chooses to offer a
health benefit plan to individuals, it must offer at least one
health benefit plan to individuals that is not a catastrophic
health plan. [2000 c 79 § 26.]
Effective dates—2000 c 79 §§ 26, 38, and 39: "(1) Section 38 of this
act takes effect July 1, 2000.
(2) Section 39 of this act takes effect September 1, 2000.
(3) *Section 26 of this act takes effect on the first day of the month fol(2004 Ed.)
Insurance Reform
lowing the expiration of a one hundred eighty-day period beginning on the
effective date of section 25 of this act." [2000 c 79 § 50.]
*Reviser's note: Section 26 of this act takes effect October 1, 2000.
Severability—2000 c 79: See note following RCW 48.04.010.
48.43.045
48.43.045 Health plan requirements—Annual
reports—Exemptions. Every health plan delivered, issued
for delivery, or renewed by a health carrier on and after January 1, 1996, shall:
(1) Permit every category of health care provider to provide health services or care for conditions included in the
basic health plan services to the extent that:
(a) The provision of such health services or care is within
the health care providers' permitted scope of practice; and
(b) The providers agree to abide by standards related to:
(i) Provision, utilization review, and cost containment of
health services;
(ii) Management and administrative procedures; and
(iii) Provision of cost-effective and clinically efficacious
health services.
(2) Annually report the names and addresses of all officers, directors, or trustees of the health carrier during the preceding year, and the amount of wages, expense reimbursements, or other payments to such individuals. This requirement does not apply to a foreign or alien insurer regulated
under chapter 48.20 or 48.21 RCW that files a supplemental
compensation exhibit in its annual statement as required by
law. [1997 c 231 § 205; 1995 c 265 § 8.]
Short title—Part headings and captions not law—Severability—
Effective dates—1997 c 231: See notes following RCW 48.43.005.
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
48.43.055
48.43.055 Procedures for review and adjudication of
health care provider complaints—Requirements. Each
health carrier as defined under RCW 48.43.005 shall file with
the commissioner its procedures for review and adjudication
of complaints initiated by health care providers. Procedures
filed under this section shall provide a fair review for consideration of complaints. Every health carrier shall provide reasonable means allowing any health care provider aggrieved
by actions of the health carrier to be heard after submitting a
written request for review. If the health carrier fails to grant
or reject a request within thirty days after it is made, the complaining health care provider may proceed as if the complaint
had been rejected. A complaint that has been rejected by the
health carrier may be submitted to nonbinding mediation.
Mediation shall be conducted under mediation rules similar
to those of the American arbitration association, the center
for public resources, the judicial arbitration and mediation
service, RCW 7.70.100, or any other rules of mediation
agreed to by the parties. This section is solely for resolution
of provider complaints. Complaints by, or on behalf of, a
covered person are subject to the grievance processes in
RCW 48.43.530. [2002 c 300 § 6; 1995 c 265 § 20.]
48.43.085
religion—Requirements. (1) The legislature recognizes
that every individual possesses a fundamental right to exercise their religious beliefs and conscience. The legislature
further recognizes that in developing public policy, conflicting religious and moral beliefs must be respected. Therefore,
while recognizing the right of conscientious objection to participating in specific health services, the state shall also recognize the right of individuals enrolled with plans containing
the basic health plan services to receive the full range of services covered under the plan.
(2)(a) No individual health care provider, religiously
sponsored health carrier, or health care facility may be
required by law or contract in any circumstances to participate in the provision of or payment for a specific service if
they object to so doing for reason of conscience or religion.
No person may be discriminated against in employment or
professional privileges because of such objection.
(b) The provisions of this section are not intended to
result in an enrollee being denied timely access to any service
included in the basic health plan services. Each health carrier
shall:
(i) Provide written notice to enrollees, upon enrollment
with the plan, listing services that the carrier refuses to cover
for reason of conscience or religion;
(ii) Provide written information describing how an
enrollee may directly access services in an expeditious manner; and
(iii) Ensure that enrollees refused services under this section have prompt access to the information developed pursuant to (b)(ii) of this subsection.
(c) The insurance commissioner shall establish by rule a
mechanism or mechanisms to recognize the right to exercise
conscience while ensuring enrollees timely access to services
and to assure prompt payment to service providers.
(3)(a) No individual or organization with a religious or
moral tenet opposed to a specific service may be required to
purchase coverage for that service or services if they object to
doing so for reason of conscience or religion.
(b) The provisions of this section shall not result in an
enrollee being denied coverage of, and timely access to, any
service or services excluded from their benefits package as a
result of their employer's or another individual's exercise of
the conscience clause in (a) of this subsection.
(c) The insurance commissioner shall define by rule the
process through which health carriers may offer the basic
health plan services to individuals and organizations identified in (a) and (b) of this subsection in accordance with the
provisions of subsection (2)(c) of this section.
(4) Nothing in this section requires a health carrier,
health care facility, or health care provider to provide any
health care services without appropriate payment of premium
or fee. [1995 c 265 § 25.]
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
48.43.085
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
48.43.065
48.43.065 Right of individuals to receive services—
Right of providers, carriers, and facilities to refuse to participate in or pay for services for reason of conscience or
(2004 Ed.)
48.43.085 Health carrier may not prohibit its enrollees from contracting for services outside the health care
plan. Notwithstanding any other provision of law, no health
carrier subject to the jurisdiction of the state of Washington
may prohibit directly or indirectly its enrollees from freely
contracting at any time to obtain any health care services out[Title 48 RCW—page 267]
48.43.087
Title 48 RCW: Insurance
side the health care plan on any terms or conditions the
enrollees choose. Nothing in this section shall be construed to
bind a carrier for any services delivered outside the health
plan. The provisions of this section shall be disclosed pursuant to *RCW 48.43.095(2). The insurance commissioner is
prohibited from adopting rules regarding this section. [1996
c 312 § 3.]
*Reviser's note: RCW 48.43.095 was repealed by 2000 c 5 § 29, effective July 1, 2001.
48.43.087
48.43.087 Contracting for services at enrollee's
expense—Mental health care practitioner—Conditions—
Exception. (1) For purposes of this section:
(a) "Health carrier" includes disability insurers regulated
under chapter 48.20 or 48.21 RCW, health care services contractors regulated under chapter 48.44 RCW, plans operating
under the health care authority under chapter 41.05 RCW, the
basic health plan operating under chapter 70.47 RCW, the
state health insurance pool operating under chapter 48.41
RCW, insuring entities regulated under this chapter, and
health maintenance organizations regulated under chapter
48.46 RCW.
(b) "Intermediary" means a person duly authorized to
negotiate and execute provider contracts with health carriers
on behalf of mental health care practitioners.
(c) Consistent with their lawful scopes of practice, "mental health care practitioners" includes only the following:
Any generally recognized medical specialty of practitioners
licensed under chapter 18.57 or 18.71 RCW who provide
mental health services, advanced practice psychiatric nurses
as authorized by the nursing care quality assurance commission under chapter 18.79 RCW, psychologists licensed under
chapter 18.83 RCW, and mental health counselors, marriage
and family therapists, and social workers licensed under
chapter 18.225 RCW.
(d) "Mental health services" means outpatient services.
(2) Consistent with federal and state law and rule, no
contract between a mental health care practitioner and an
intermediary or between a mental health care practitioner and
a health carrier that is written, amended, or renewed after
June 6, 1996, may contain a provision prohibiting a practitioner and an enrollee from agreeing to contract for services
solely at the expense of the enrollee as follows:
(a) On the exhaustion of the enrollee's mental health care
coverage;
(b) During an appeal or an adverse certification process;
(c) When an enrollee's condition is excluded from coverage; or
(d) For any other clinically appropriate reason at any
time.
(3) If a mental health care practitioner provides services
to an enrollee during an appeal or adverse certification process, the practitioner must provide to the enrollee written
notification that the enrollee is responsible for payment of
these services, unless the health carrier elects to pay for services provided.
(4) This section does not apply to a mental health care
practitioner who is employed full time on the staff of a health
carrier. [2001 c 251 § 33; 1996 c 304 § 1.]
Severability—2001 c 251: See RCW 18.225.900.
[Title 48 RCW—page 268]
48.43.091
48.43.091 Health carrier coverage of outpatient mental health services—Requirements. Every health carrier
that provides coverage for any outpatient mental health service shall comply with the following requirements:
(1) In performing a utilization review of mental health
services for a specific enrollee, the utilization review is limited to accessing only the specific health care information
contained in the enrollee's record.
(2) In performing an audit of a provider that has furnished mental health services to a carrier's enrollees, the audit
is limited to accessing only the records of enrollees covered
by the specific health carrier for which the audit is being performed, except as otherwise permitted by RCW 70.02.050
and 71.05.630. [1999 c 87 § 1.]
48.43.093
48.43.093 Health carrier coverage of emergency
medical services—Requirements—Conditions. (1) When
conducting a review of the necessity and appropriateness of
emergency services or making a benefit determination for
emergency services:
(a) A health carrier shall cover emergency services necessary to screen and stabilize a covered person if a prudent
layperson acting reasonably would have believed that an
emergency medical condition existed. In addition, a health
carrier shall not require prior authorization of such services
provided prior to the point of stabilization if a prudent layperson acting reasonably would have believed that an emergency medical condition existed. With respect to care
obtained from a nonparticipating hospital emergency department, a health carrier shall cover emergency services necessary to screen and stabilize a covered person if a prudent layperson would have reasonably believed that use of a participating hospital emergency department would result in a delay
that would worsen the emergency, or if a provision of federal,
state, or local law requires the use of a specific provider or
facility. In addition, a health carrier shall not require prior
authorization of such services provided prior to the point of
stabilization if a prudent layperson acting reasonably would
have believed that an emergency medical condition existed
and that use of a participating hospital emergency department
would result in a delay that would worsen the emergency.
(b) If an authorized representative of a health carrier
authorizes coverage of emergency services, the health carrier
shall not subsequently retract its authorization after the emergency services have been provided, or reduce payment for an
item or service furnished in reliance on approval, unless the
approval was based on a material misrepresentation about the
covered person's health condition made by the provider of
emergency services.
(c) Coverage of emergency services may be subject to
applicable copayments, coinsurance, and deductibles, and a
health carrier may impose reasonable differential cost-sharing arrangements for emergency services rendered by nonparticipating providers, if such differential between costsharing amounts applied to emergency services rendered by
participating provider versus nonparticipating provider does
not exceed fifty dollars. Differential cost sharing for emergency services may not be applied when a covered person
presents to a nonparticipating hospital emergency department
rather than a participating hospital emergency department
(2004 Ed.)
Insurance Reform
when the health carrier requires preauthorization for
postevaluation or poststabilization emergency services if:
(i) Due to circumstances beyond the covered person's
control, the covered person was unable to go to a participating hospital emergency department in a timely fashion without serious impairment to the covered person's health; or
(ii) A prudent layperson possessing an average knowledge of health and medicine would have reasonably believed
that he or she would be unable to go to a participating hospital
emergency department in a timely fashion without serious
impairment to the covered person's health.
(d) If a health carrier requires preauthorization for
postevaluation or poststabilization services, the health carrier
shall provide access to an authorized representative twentyfour hours a day, seven days a week, to facilitate review. In
order for postevaluation or poststabilization services to be
covered by the health carrier, the provider or facility must
make a documented good faith effort to contact the covered
person's health carrier within thirty minutes of stabilization,
if the covered person needs to be stabilized. The health carrier's authorized representative is required to respond to a
telephone request for preauthorization from a provider or
facility within thirty minutes. Failure of the health carrier to
respond within thirty minutes constitutes authorization for
the provision of immediately required medically necessary
postevaluation and poststabilization services, unless the
health carrier documents that it made a good faith effort but
was unable to reach the provider or facility within thirty minutes after receiving the request.
(e) A health carrier shall immediately arrange for an
alternative plan of treatment for the covered person if a nonparticipating emergency provider and health plan cannot
reach an agreement on which services are necessary beyond
those immediately necessary to stabilize the covered person
consistent with state and federal laws.
(2) Nothing in this section is to be construed as prohibiting the health carrier from requiring notification within the
time frame specified in the contract for inpatient admission or
as soon thereafter as medically possible but no less than
twenty-four hours. Nothing in this section is to be construed
as preventing the health carrier from reserving the right to
require transfer of a hospitalized covered person upon stabilization. Follow-up care that is a direct result of the emergency
must be obtained in accordance with the health plan's usual
terms and conditions of coverage. All other terms and conditions of coverage may be applied to emergency services.
[1997 c 231 § 301.]
Short title—Part headings and captions not law—Severability—
Effective dates—1997 c 231: See notes following RCW 48.43.005.
48.43.097
48.43.097 Filing of financial statements—Every
health carrier. Every health carrier holding a registration
from the commissioner shall file its financial statements as
required by this code and by the commissioner in accordance
with the accounting practices and procedures manuals as
adopted by the national association of insurance commissioners, unless otherwise provided by law. [1999 c 33 § 3.]
48.43.105
48.43.105 Preparation of documents that compare
health carriers—Immunity—Due diligence. (1) A public
or private entity who exercises due diligence in preparing a
(2004 Ed.)
48.43.115
document of any kind that compares health carriers of any
kind is immune from civil liability from claims based on the
document and the contents of the document.
(2)(a) There is absolute immunity to civil liability from
claims based on such a comparison document and its contents
if the information was provided by the carrier, was substantially accurately presented, and contained the effective date
of the information that the carrier supplied, if any.
(b) Where due diligence efforts to obtain accurate information have been taken, there is immunity from claims based
on such a comparison document and its contents if the publisher of the comparison document asked for such information from the carrier, was refused, and relied on any usually
reliable source for the information including, but not limited
to, carrier enrollees, customers, agents, brokers, or providers.
The carrier enrollees, customers, agents, brokers, or providers are likewise immune from civil liability on claims based
on information they provided if they believed the information
to be accurate and had exercised due diligence in their efforts
to confirm the accuracy of the information provided.
(3) The immunity from liability contained in this section
applies only if the comparison document contains the following in a conspicuous place and in easy to read typeface:
This comparison is based on information believed to
be reliable by its publisher, but the accuracy of the
information cannot be guaranteed. Caution is suggested to all readers who are encouraged to confirm
data of importance to the reader before any purchasing or other decisions are made.
(4) The insurance commissioner is prohibited from
adopting rules regarding this section. [1996 c 312 § 5.]
48.43.115
48.43.115 Maternity services—Intent—Definitions—
Patient preference—Clinical sovereignty of provider—
Notice to policyholders—Application. (1) The legislature
recognizes the role of health care providers as the appropriate
authority to determine and establish the delivery of quality
health care services to maternity patients and their newly
born children. It is the intent of the legislature to recognize
patient preference and the clinical sovereignty of providers as
they make determinations regarding services provided and
the length of time individual patients may need to remain in a
health care facility after giving birth. It is not the intent of the
legislature to diminish a carrier's ability to utilize managed
care strategies but to ensure the clinical judgment of the provider is not undermined by restrictive carrier contracts or utilization review criteria that fail to recognize individual postpartum needs.
(2) Unless otherwise specifically provided, the following
definitions apply throughout this section:
(a) "Attending provider" means a provider who: Has
clinical hospital privileges consistent with RCW 70.43.020;
is included in a provider network of the carrier that is providing coverage; and is a physician licensed under chapter 18.57
or 18.71 RCW, a certified nurse midwife licensed under
chapter 18.79 RCW, a midwife licensed under chapter 18.50
RCW, a physician's assistant licensed under chapter 18.57A
or 18.71A RCW, or an advanced registered nurse practitioner
licensed under chapter 18.79 RCW.
[Title 48 RCW—page 269]
48.43.125
Title 48 RCW: Insurance
(b) "Health carrier" or "carrier" means disability insurers
regulated under chapter 48.20 or 48.21 RCW, health care services contractors regulated under chapter 48.44 RCW, health
maintenance organizations regulated under chapter 48.46
RCW, plans operating under the health care authority under
chapter 41.05 RCW, the state health insurance pool operating
under chapter 48.41 RCW, and insuring entities regulated
under this chapter.
(3)(a) Every health carrier that provides coverage for
maternity services must permit the attending provider, in consultation with the mother, to make decisions on the length of
inpatient stay, rather than making such decisions through
contracts or agreements between providers, hospitals, and
insurers. These decisions must be based on accepted medical
practice.
(b) Covered eligible services may not be denied for inpatient, postdelivery care to a mother and her newly born child
after a vaginal delivery or a cesarean section delivery for such
care as ordered by the attending provider in consultation with
the mother.
(c) At the time of discharge, determination of the type
and location of follow-up care must be made by the attending
provider in consultation with the mother rather than by contract or agreement between the hospital and the insurer.
These decisions must be based on accepted medical practice.
(d) Covered eligible services may not be denied for follow-up care, including in-person care, as ordered by the
attending provider in consultation with the mother. Coverage
for providers of follow-up services must include, but need not
be limited to, attending providers as defined in this section,
home health agencies licensed under chapter 70.127 RCW,
and registered nurses licensed under chapter 18.79 RCW.
(e) This section does not require attending providers to
authorize care they believe to be medically unnecessary.
(f) Coverage for the newly born child must be no less
than the coverage of the child's mother for no less than three
weeks, even if there are separate hospital admissions.
(4) A carrier that provides coverage for maternity services may not deselect, terminate the services of, require
additional documentation from, require additional utilization
review of, reduce payments to, or otherwise provide financial
disincentives to any attending provider or health care facility
solely as a result of the attending provider or health care facility ordering care consistent with this section. This section
does not prevent any insurer from reimbursing an attending
provider or health care facility on a capitated, case rate, or
other financial incentive basis.
(5) Every carrier that provides coverage for maternity
services must provide notice to policyholders regarding the
coverage required under this section. The notice must be in
writing and must be transmitted at the earliest of the next
mailing to the policyholder, the yearly summary of benefits
sent to the policyholder, or January 1 of the year following
June 6, 1996.
(6) This section does not establish a standard of medical
care.
(7) This section applies to coverage for maternity services under a contract issued or renewed by a health carrier
after June 6, 1996, and applies to plans operating under the
health care authority under chapter 41.05 RCW beginning
January 1, 1998. [2003 c 248 § 14; 1996 c 281 § 1.]
[Title 48 RCW—page 270]
Short title—1996 c 281: "This act shall be known as "the Erin Act.""
[1996 c 281 § 3.]
48.43.125
48.43.125 Coverage at a long-term care facility following hospitalization—Definition. (1) A carrier that provides coverage for a person at a long-term care facility following the person's hospitalization shall, upon the request of
the person or his or her legal representative as authorized in
RCW 7.70.065, provide such coverage at the facility in which
the person resided immediately prior to the hospitalization if:
(a) The person's primary care physician determines that
the medical care needs of the person can be met at the
requested facility;
(b) The requested facility has all applicable licenses and
certifications, and is not under a stop placement order that
prevents the person's readmission;
(c) The requested facility agrees to accept payment from
the carrier for covered services at the rate paid to similar
facilities that otherwise contract with the carrier to provide
such services; and
(d) The requested facility, with regard to the following,
agrees to abide by the standards, terms, and conditions
required by the carrier of similar facilities with which the carrier otherwise contracts: (i) Utilization review, quality assurance, and peer review; and (ii) management and administrative procedures, including data and financial reporting that
may be required by the carrier.
(2) For purposes of this section, "long-term care facility"
or "facility" means a nursing facility licensed under chapter
18.51 RCW, continuing care retirement community defined
under RCW 70.38.025, boarding home licensed under chapter 18.20 RCW, or assisted living facility. [1999 c 312 § 2.]
Findings—1999 c 312: "The legislature finds that a long-term care
facility is home for any individual who resides there, and the individual has
the right to receive services in his or her own home and to be cared for by the
organization with which he or she has a contractual agreement to provide
housing and related services. The legislature further finds that restricting
individuals from returning to the long-term care facility in which they were
residing prior to hospitalization may detrimentally impact the health and
well-being of frail individuals and their families." [1999 c 312 § 1.]
Short title—1999 c 312: "This act may be known and cited as the Kitson act." [1999 c 312 § 3.]
48.43.180
48.43.180 Denturist services. Notwithstanding any
provision of any certified health plan covering dental care as
provided for in this chapter, effective January 1, 1995, benefits shall not be denied thereunder for any service performed
by a denturist licensed under chapter 18.30 RCW if (1) the
service performed was within the lawful scope of such person's license, and (2) such plan would have provided benefits
if such service had been performed by a dentist licensed
under chapter 18.32 RCW. [1995 c 1 § 23 (Initiative Measure No. 607, approved November 8, 1994).]
Short title—Severability—1995 c 1 (Initiative Measure No. 607):
See RCW 18.30.900 and 18.30.901.
48.43.185
48.43.185 General anesthesia services for dental procedures. (1) Each group health benefit plan that provides
coverage for hospital, medical, or ambulatory surgery center
services must cover general anesthesia services and related
facility charges in conjunction with any dental procedure performed in a hospital or ambulatory surgical center if such
(2004 Ed.)
Insurance Reform
anesthesia services and related facility charges are medically
necessary because the covered person:
(a) Is under the age of seven, or physically or developmentally disabled, with a dental condition that cannot be
safely and effectively treated in a dental office; or
(b) Has a medical condition that the person's physician
determines would place the person at undue risk if the dental
procedure were performed in a dental office. The procedure
must be approved by the person's physician.
(2) Each group health benefit plan or group dental plan
that provides coverage for dental services must cover medically necessary general anesthesia services in conjunction
with any covered dental procedure performed in a dental
office if the general anesthesia services are medically necessary because the covered person is under the age of seven or
physically or developmentally disabled.
(3) This section does not prohibit a group health benefit
plan or group dental plan from:
(a) Applying cost-sharing requirements, maximum
annual benefit limitations, and prior authorization requirements to the services required under this section; or
(b) Covering only those services performed by a health
care provider, or in a health care facility, that is part of its provider network; nor does it limit the health carrier in negotiating rates and contracts with specific providers.
(4) This section does not apply to medicare supplement
policies, or supplemental contracts covering a specified disease or other limited benefits.
(5) For the purpose of this section, "general anesthesia
services" means services to induce a state of unconsciousness
accompanied by a loss of protective reflexes, including the
ability to maintain an airway independently and respond purposefully to physical stimulation or verbal command.
(6) This section applies to group health benefit plans and
group dental plans issued or renewed on or after January 1,
2002. [2001 c 321 § 2.]
48.43.200 Disclosure of certain material transactions—Report—Information is confidential. (1) Every
certified health plan domiciled in this state shall file a report
with the commissioner disclosing material acquisitions and
dispositions of assets or material nonrenewals, cancellations,
or revisions of ceded reinsurance agreements unless these
acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements have been submitted to the commissioner for review,
approval, or information purposes under other provisions of
this title or other requirements.
(2) The report required in subsection (1) of this section is
due within fifteen days after the end of the calendar month in
which any of the transactions occur.
(3) One complete copy of the report, including any
exhibits or other attachments filed as part of the report, shall
be filed with the:
(a) Commissioner; and
(b) National association of insurance commissioners.
(4) All reports obtained by or disclosed to the commissioner under this section and RCW 48.43.205 through
48.43.225 are exempt from public inspection and copying
and shall not be subject to subpoena. These reports shall not
be made public by the commissioner, the national association
48.43.200
(2004 Ed.)
48.43.215
of insurance commissioners, or any other person, except to
insurance departments of other states, without the prior written consent of the certified health plan to which it pertains
unless the commissioner, after giving the certified health plan
that would be affected by disclosure notice and a hearing
under chapter 48.04 RCW, determines that the interest of policyholders, subscribers, shareholders, or the public will be
served by the publication, in which event the commissioner
may publish all or any part of the report in the manner he or
she deems appropriate. [1995 c 86 § 7.]
48.43.205
48.43.205 Material acquisitions or dispositions. No
acquisitions or dispositions of assets need be reported pursuant to RCW 48.43.200 if the acquisitions or dispositions are
not material. For purposes of RCW 48.43.200 through
48.43.225, a material acquisition, or the aggregate of any
series of related acquisitions during any thirty-day period; or
disposition, or the aggregate of any series of related dispositions during any thirty-day period is an acquisition or disposition that is nonrecurring and not in the ordinary course of
business and involves more than five percent of the reporting
certified health plan's total assets as reported in its most
recent statutory statement filed with the commissioner.
[1995 c 86 § 8.]
48.43.210
48.43.210 Asset acquisitions—Asset dispositions. (1)
Asset acquisitions subject to RCW 48.43.200 through
48.43.225 include every purchase, lease, exchange, merger,
consolidation, succession, or other acquisition other than the
construction or development of real property by or for the
reporting certified health plan or the acquisition of materials
for such purpose.
(2) Asset dispositions subject to RCW 48.43.200
through 48.43.225 include every sale, lease, exchange,
merger, consolidation, mortgage, hypothecation, abandonment, destruction, other disposition, or assignment, whether
for the benefit of creditors or otherwise. [1995 c 86 § 9.]
48.43.215
48.43.215 Report of a material acquisition or disposition of assets—Information required. (1) The following
information is required to be disclosed in any report of a
material acquisition or disposition of assets:
(a) Date of the transaction;
(b) Manner of acquisition or disposition;
(c) Description of the assets involved;
(d) Nature and amount of the consideration given or
received;
(e) Purpose of or reason for the transaction;
(f) Manner by which the amount of consideration was
determined;
(g) Gain or loss recognized or realized as a result of the
transaction; and
(h) Names of the persons from whom the assets were
acquired or to whom they were disposed.
(2) Certified health plans are required to report material
acquisitions and dispositions on a nonconsolidated basis
unless the certified health plan is part of a consolidated group
of insurers that utilizes a pooling arrangement or one hundred
percent reinsurance agreement that affects the solvency and
integrity of the certified health plan's reserves and such certi[Title 48 RCW—page 271]
48.43.220
Title 48 RCW: Insurance
fied health plan ceded substantially all of its direct and
assumed business to the pool. A certified health plan has
ceded substantially all of its direct and assumed business to a
pool if the certified health plan has less than one million dollars total direct plus assumed written premiums during a calendar year that are not subject to a pooling arrangement and
the net income of the business not subject to the pooling
arrangement represents less than five percent of the certified
health plan's net worth. [1995 c 86 § 10.]
48.43.220
48.43.220 Material nonrenewals, cancellations, or
revisions of ceded reinsurance agreements. (1) No nonrenewals, cancellations, or revisions of ceded reinsurance
agreements need be reported under RCW 48.43.200 if the
nonrenewals, cancellations, or revisions are not material. For
purposes of RCW 48.43.200 through 48.43.225, a material
nonrenewal, cancellation, or revision is one that affects:
(a) More than fifty percent of a certified health plan's
total reserve credit taken for business ceded, on an annualized
basis, as indicated in the certified health plan's most recent
annual statement;
(b) More than ten percent of a certified health plan's total
cession when it is replaced by one or more unauthorized reinsurers; or
(c) Previously established collateral requirements, when
they have been reduced or waived as respects one or more
unauthorized reinsurers representing collectively more than
ten percent of a total cession.
(2) However, a filing is not required if the certified
health plan's total reserve credit taken for business ceded represents, on an annualized basis, less than ten percent of the
statutory reserve requirement prior to any cession. [1995 c
86 § 11.]
48.43.225
48.43.225 Report of a material nonrenewal, cancellation, or revision of ceded reinsurance agreements—Information required. (1) The following is required to be disclosed in any report of a material nonrenewal, cancellation, or
revision of ceded reinsurance agreements:
(a) The effective date of the nonrenewal, cancellation, or
revision;
(b) The description of the transaction with an identification of the initiator;
(c) The purpose of or reason for the transaction; and
(d) If applicable, the identity of the replacement reinsurers.
(2) Certified health plans are required to report all material nonrenewals, cancellations, or revisions of ceded reinsurance agreements on a nonconsolidated basis unless the certified health plan is part of a consolidated group of insurers
which utilizes a pooling arrangement or one hundred percent
reinsurance agreement that affects the solvency and integrity
of the certified health plan's reserves and the certified health
plan ceded substantially all of its direct and assumed business
to the pool. A certified health plan has ceded substantially all
of its direct and assumed business to a pool if the certified
health plan has less than one million dollars total direct plus
assumed written premiums during a calendar year that are not
subject to a pooling arrangement and the net income of the
business not subject to the pooling arrangement represents
[Title 48 RCW—page 272]
less than five percent of the certified health plan's net worth.
[1995 c 86 § 12.]
48.43.300
48.43.300 Definitions. The definitions in this section
apply throughout RCW 48.43.300 through 48.43.370 unless
the context clearly requires otherwise.
(1) "Adjusted RBC report" means an RBC report that has
been adjusted by the commissioner in accordance with RCW
48.43.305(4).
(2) "Corrective order" means an order issued by the commissioner specifying corrective actions that the commissioner has determined are required.
(3) "Domestic carrier" means any carrier domiciled in
this state, or any person or entity subject to chapter 48.42
RCW domiciled in this state.
(4) "Foreign or alien carrier" means any carrier that is
licensed to do business in this state but is not domiciled in this
state, or any person or entity subject to chapter 48.42 RCW
not domiciled in this state.
(5) "NAIC" means the national association of insurance
commissioners.
(6) "Negative trend" means, with respect to a carrier, a
negative trend over a period of time, as determined in accordance with the "trend test calculation" included in the RBC
instructions.
(7) "RBC" means risk-based capital.
(8) "RBC instructions" means the RBC report including
risk-based capital instructions adopted by the NAIC, as such
RBC instructions may be amended by the NAIC from time to
time in accordance with the procedures adopted by the NAIC.
(9) "RBC level" means a carrier's company action level
RBC, regulatory action level RBC, authorized control level
RBC, or mandatory control level RBC where:
(a) "Company action level RBC" means, with respect to
any carrier, the product of 2.0 and its authorized control level
RBC;
(b) "Regulatory action level RBC" means the product of
1.5 and its authorized control level RBC;
(c) "Authorized control level RBC" means the number
determined under the risk-based capital formula in accordance with the RBC instructions;
(d) "Mandatory control level RBC" means the product of
.70 and the authorized control level RBC.
(10) "RBC plan" means a comprehensive financial plan
containing the elements specified in RCW 48.43.310(2). If
the commissioner rejects the RBC plan, and it is revised by
the carrier, with or without the commissioner's recommendation, the plan shall be called the "revised RBC plan."
(11) "RBC report" means the report required in RCW
48.43.305.
(12) "Total adjusted capital" means the sum of:
(a) Either a carrier's statutory capital and surplus or net
worth, or both, as determined in accordance with statutory
accounting applicable to the annual financial statements
required to be filed with the commissioner; and
(b) Other items, if any, as the RBC instructions may provide. [1998 c 241 § 1.]
48.43.305
48.43.305 Report of RBC levels—Distribution of
report—Formula for determination—Commissioner
(2004 Ed.)
Insurance Reform
may make adjustments. (1) Every domestic carrier shall,
on or prior to the filing date of March 1st, prepare and submit
to the commissioner a report of its RBC levels as of the end
of the calendar year just ended, in a form and containing such
information as is required by the RBC instructions. In addition, every domestic carrier shall file its RBC report:
(a) With the NAIC in accordance with the RBC instructions; and
(b) With the insurance commissioner in any state in
which the carrier is authorized to do business, if the insurance
commissioner has notified the carrier of its request in writing,
in which case the carrier shall file its RBC report not later
than the later of:
(i) Fifteen days from the receipt of notice to file its RBC
report with that state; or
(ii) The filing date.
(2) A carrier's RBC shall be determined in accordance
with the formula set forth in the RBC instructions. The formula shall take into account (and may adjust for the covariance between):
(a) The risk with respect to the carrier's assets;
(b) The risk of adverse insurance experience with respect
to the carrier's liabilities and obligations;
(c) The interest rate risk with respect to the carrier's business; and
(d) All other business risks and such other relevant risks
as are set forth in the RBC instructions; determined in each
case by applying the factors in the manner set forth in the
RBC instructions.
(3) An excess of capital over the amount produced by the
risk-based capital requirements contained in RCW 48.43.300
through 48.43.370 and the formulas, schedules, and instructions referenced in RCW 48.43.300 through 48.43.370 is
desirable in the business of insurance. Accordingly, carriers
should seek to maintain capital above the RBC levels
required by RCW 48.43.300 through 48.43.370. Additional
capital is used and useful in the insurance business and helps
to secure a carrier against various risks inherent in, or affecting, the business of insurance and not accounted for or only
partially measured by the risk-based capital requirements
contained in RCW 48.43.300 through 48.43.370.
(4) If a domestic carrier files an RBC report that in the
judgment of the commissioner is inaccurate, then the commissioner shall adjust the RBC report to correct the inaccuracy and shall notify the carrier of the adjustment. The notice
shall contain a statement of the reason for the adjustment.
[1998 c 241 § 2.]
48.43.310 Company action level event—Required
RBC plan—Commissioner's review—Notification—
Challenge by carrier. (1) "Company action level event"
means any of the following events:
(a) The filing of an RBC report by a carrier which indicates that:
(i) The carrier's total adjusted capital is greater than or
equal to its regulatory action level RBC but less than its company action level RBC; or
(ii) The carrier has total adjusted capital which is greater
than or equal to its company action level RBC but less than
the product of its authorized control level RBC and 2.5 and
has a negative trend;
48.43.310
(2004 Ed.)
48.43.310
(b) The notification by the commissioner to the carrier of
an adjusted RBC report that indicates an event in (a) of this
subsection, provided the carrier does not challenge the
adjusted RBC report under RCW 48.43.330; or
(c) If, under RCW 48.43.330, a carrier challenges an
adjusted RBC report that indicates the event in (a) of this subsection, the notification by the commissioner to the carrier
that the commissioner has, after a hearing, rejected the carrier's challenge.
(2) In the event of a company action level event, the carrier shall prepare and submit to the commissioner an RBC
plan that:
(a) Identifies the conditions that contribute to the company action level event;
(b) Contains proposals of corrective actions that the carrier intends to take and would be expected to result in the
elimination of the company action level event;
(c) Provides projections of the carrier's financial results
in the current year and at least the four succeeding years, both
in the absence of proposed corrective actions and giving
effect to the proposed corrective actions, including projections of statutory operating income, net income, capital, surplus, capital and surplus, and net worth. The projections for
both new and renewal business might include separate projections for each major line of business and separately identify each significant income, expense, and benefit component;
(d) Identifies the key assumptions impacting the carrier's
projections and the sensitivity of the projections to the
assumptions; and
(e) Identifies the quality of, and problems associated
with, the carrier's business, including but not limited to its
assets, anticipated business growth and associated surplus
strain, extraordinary exposure to risk, mix of business, and
use of reinsurance, if any, in each case.
(3) The RBC plan shall be submitted:
(a) Within forty-five days of the company action level
event; or
(b) If the carrier challenges an adjusted RBC report
under RCW 48.43.330, within forty-five days after notification to the carrier that the commissioner has, after a hearing,
rejected the carrier's challenge.
(4) Within sixty days after the submission by a carrier of
an RBC plan to the commissioner, the commissioner shall
notify the carrier whether the RBC plan may be implemented
or is, in the judgment of the commissioner, unsatisfactory. If
the commissioner determines the RBC plan is unsatisfactory,
the notification to the carrier shall set forth the reasons for the
determination, and may set forth proposed revisions that will
render the RBC plan satisfactory. Upon notification from the
commissioner, the carrier shall prepare a revised RBC plan,
that may incorporate by reference any revisions proposed by
the commissioner, and shall submit the revised RBC plan to
the commissioner:
(a) Within forty-five days after the notification from the
commissioner; or
(b) If the carrier challenges the notification from the
commissioner under RCW 48.43.330, within forty-five days
after a notification to the carrier that the commissioner has,
after a hearing, rejected the carrier's challenge.
[Title 48 RCW—page 273]
48.43.315
Title 48 RCW: Insurance
(5) In the event of a notification by the commissioner to
a carrier that the carrier's RBC plan or revised RBC plan is
unsatisfactory, the commissioner may, subject to the carrier's
rights to a hearing under RCW 48.43.330, specify in the notification that the notification constitutes a regulatory action
level event.
(6) Every domestic carrier that files an RBC plan or
revised RBC plan with the commissioner shall file a copy of
the RBC plan or revised RBC plan with the insurance commissioner in any state in which the carrier is authorized to do
business if:
(a) Such state has an RBC provision substantially similar
to RCW 48.43.335(1); and
(b) The insurance commissioner of that state has notified
the carrier of its request for the filing in writing, in which case
the carrier shall file a copy of the RBC plan or revised RBC
plan in that state no later than the later of:
(i) Fifteen days after the receipt of notice to file a copy of
its RBC plan or revised plan with the state; or
(ii) The date on which the RBC plan or revised RBC plan
is filed under subsections (3) and (4) of this section. [1998 c
241 § 3.]
48.43.315 Regulatory action level event—Required
RBC plan—Commissioner's review—Notification—
Challenge by carrier. (1) "Regulatory action level event"
means, with respect to any carrier, any of the following
events:
(a) The filing of an RBC report by the carrier which indicates that the carrier's total adjusted capital is greater than or
equal to its authorized control level RBC but less than its regulatory action level RBC;
(b) The notification by the commissioner to a carrier of
an adjusted RBC report that indicates the event in (a) of this
subsection, provided the carrier does not challenge the
adjusted RBC report under RCW 48.43.330;
(c) If, under RCW 48.43.330, the carrier challenges an
adjusted RBC report that indicates the event in (a) of this subsection, the notification by the commissioner to the carrier
that the commissioner has, after a hearing, rejected the carrier's challenge;
(d) The failure of the carrier to file an RBC report by the
filing date, unless the carrier has provided an explanation for
such failure that is satisfactory to the commissioner and has
cured the failure within ten days after the filing date;
(e) The failure of the carrier to submit an RBC plan to the
commissioner within the time period set forth in RCW
48.43.310(3);
(f) Notification by the commissioner to the carrier that:
(i) The RBC plan or revised RBC plan submitted by the
carrier is, in the judgment of the commissioner, unsatisfactory; and
(ii) The notification constitutes a regulatory action level
event with respect to the carrier, provided the carrier has not
challenged the determination under RCW 48.43.330;
(g) If, under RCW 48.43.330, the carrier challenges a
determination by the commissioner under (f) of this subsection, the notification by the commissioner to the carrier that
the commissioner has, after a hearing, rejected the challenge;
(h) Notification by the commissioner to the carrier that
the carrier has failed to adhere to its RBC plan or revised
48.43.315
[Title 48 RCW—page 274]
RBC plan, but only if such failure has a substantial adverse
effect on the ability of the carrier to eliminate the company
action level event in accordance with its RBC plan or revised
RBC plan and the commissioner has so stated in the notification, provided the carrier has not challenged the determination under RCW 48.43.330; or
(i) If, under RCW 48.43.330, the carrier challenges a
determination by the commissioner under (h) of this subsection, the notification by the commissioner to the carrier that
the commissioner has, after a hearing, rejected the challenge.
(2) In the event of a regulatory action level event the
commissioner shall:
(a) Require the carrier to prepare and submit an RBC
plan or, if applicable, a revised RBC plan;
(b) Perform the examination or analysis the commissioner deems necessary of the assets, liabilities, and operations of the carrier including a review of its RBC plan or
revised RBC plan; and
(c) Subsequent to the examination or analysis, issue an
order specifying those corrective actions the commissioner
determines are required.
(3) In determining corrective actions, the commissioner
may take into account those factors deemed relevant with
respect to the carrier based upon the commissioner's examination or analysis of the assets, liabilities, and operations of
the carrier, including, but not limited to, the results of any
sensitivity tests undertaken pursuant to the RBC instructions.
The RBC plan or revised RBC plan shall be submitted:
(a) Within forty-five days after the occurrence of the regulatory action level event;
(b) If the carrier challenges an adjusted RBC report
under RCW 48.43.330 and the challenge is not frivolous in
the judgment of the commissioner within forty-five days after
the notification to the carrier that the commissioner has, after
a hearing, rejected the carrier's challenge; or
(c) If the carrier challenges a revised RBC plan under
RCW 48.43.330 and the challenge is not frivolous in the
judgment of the commissioner, within forty-five days after
the notification to the carrier that the commissioner has, after
a hearing, rejected the carrier's challenge.
(4) The commissioner may retain actuaries and investment experts and other consultants as may be necessary in the
judgment of the commissioner to review the carrier's RBC
plan or revised RBC plan, examine or analyze the assets, liabilities, and operations of the carrier and formulate the corrective order with respect to the carrier. The fees, costs, and
expenses relating to consultants shall be borne by the affected
carrier or other party as directed by the commissioner. [1998
c 241 § 4.]
48.43.320 Authorized control level event—Commissioner's options. (1) "Authorized control level event" means
any of the following events:
(a) The filing of an RBC report by the carrier which indicates that the carrier's total adjusted capital is greater than or
equal to its mandatory control level RBC but less than its
authorized control level RBC;
(b) The notification by the commissioner to the carrier of
an adjusted RBC report that indicates the event in (a) of this
subsection, provided the carrier does not challenge the
adjusted RBC report under RCW 48.43.330;
48.43.320
(2004 Ed.)
Insurance Reform
(c) If, under RCW 48.43.330, the carrier challenges an
adjusted RBC report that indicates the event in (a) of this subsection, notification by the commissioner to the carrier that
the commissioner has, after a hearing, rejected the carrier's
challenge;
(d) The failure of the carrier to respond, in a manner satisfactory to the commissioner, to a corrective order, provided
the carrier has not challenged the corrective order under
RCW 48.43.330; or
(e) If the carrier has challenged a corrective order under
RCW 48.43.330 and the commissioner has, after a hearing,
rejected the challenge or modified the corrective order, the
failure of the carrier to respond, in a manner satisfactory to
the commissioner, to the corrective order subsequent to rejection or modification by the commissioner.
(2) In the event of an authorized control level event with
respect to a carrier, the commissioner shall:
(a) Take those actions required under RCW 48.43.315
regarding a carrier with respect to which a regulatory action
level event has occurred; or
(b) If the commissioner deems it to be in the best interests of either the policyholders or subscribers, or both, and
creditors of the carrier and of the public, take those actions
necessary to cause the carrier to be placed under regulatory
control under chapter 48.31 RCW. In the event the commissioner takes such actions, the authorized control level event is
sufficient grounds for the commissioner to take action under
chapter 48.31 RCW, and the commissioner shall have the
rights, powers, and duties with respect to the carrier as are set
forth in chapter 48.31 RCW. In the event the commissioner
takes actions under this subsection (2)(b) pursuant to an
adjusted RBC report, the carrier is entitled to those protections afforded to carriers under the provisions of RCW
48.31.121 pertaining to summary proceedings. [1998 c 241 §
5.]
48.43.325 Mandatory control level event—Commissioner's duty—Regulatory control. (1) "Mandatory control
level event" means any of the following events:
(a) The filing of an RBC report which indicates that the
carrier's total adjusted capital is less than its mandatory control level RBC;
(b) Notification by the commissioner to the carrier of an
adjusted RBC report that indicates the event in (a) of this subsection, provided the carrier does not challenge the adjusted
RBC report under RCW 48.43.330; or
(c) If, under RCW 48.43.330, the carrier challenges an
adjusted RBC report that indicates the event in (a) of this subsection, notification by the commissioner to the carrier that
the commissioner has, after a hearing, rejected the carrier's
challenge.
(2) In the event of a mandatory control level event, with
respect to a carrier, the commissioner shall take those actions
necessary to place the carrier under regulatory control under
chapter 48.31 RCW. In that event, the mandatory control
level event is sufficient grounds for the commissioner to take
action under chapter 48.31 RCW, and the commissioner shall
have the rights, powers, and duties with respect to the carrier
as are set forth in chapter 48.31 RCW. If the commissioner
takes actions pursuant to an adjusted RBC report, the carrier
is entitled to the protections of RCW 48.31.121 pertaining to
48.43.325
(2004 Ed.)
48.43.335
summary proceedings. However, the commissioner may
forego action for up to ninety days after the mandatory control level event if the commissioner finds there is a reasonable
expectation that the mandatory control level event may be
eliminated within the ninety-day period. [1998 c 241 § 6.]
48.43.330
48.43.330 Carrier's right to hearing—Request by
carrier—Date set by commissioner. (1) Upon notification
to a carrier by the commissioner of any of the following, the
carrier shall have the right to a hearing, in accordance with
chapters 48.04 and 34.05 RCW, at which the carrier may
challenge any determination or action by the commissioner:
(a) Of an adjusted RBC report; or
(b)(i) That the carrier's RBC plan or revised RBC plan is
unsatisfactory; and
(ii) The notification constitutes a regulatory action level
event with respect to such carrier; or
(c) That the carrier has failed to adhere to its RBC plan
or revised RBC plan and that such failure has a substantial
adverse effect on the ability of the carrier to eliminate the
company action level event with respect to the carrier in
accordance with its RBC plan or revised RBC plan; or
(d) Of a corrective order with respect to the carrier.
(2) The carrier shall notify the commissioner of its
request for a hearing within five days after the notification by
the commissioner under this section. Upon receipt of the carrier's request for a hearing, the commissioner shall set a date
for the hearing. The date shall be no less than ten nor more
than thirty days after the date of the carrier's request. [1998 c
241 § 7.]
48.43.335
48.43.335 Confidentiality of RBC reports and
plans—Use of certain comparisons prohibited—Certain
information intended solely for use by commissioner. (1)
All RBC reports, to the extent the information therein is not
required to be set forth in a publicly available annual statement schedule, and RBC plans, including the results or report
of any examination or analysis of a carrier and any corrective
order issued by the commissioner, with respect to any domestic carrier or foreign carrier that are filed with the commissioner constitute information that might be damaging to the
carrier if made available to its competitors, and therefore
shall be kept confidential by the commissioner. This information shall not be made public or be subject to subpoena, other
than by the commissioner and then only for the purpose of
enforcement actions taken by the commissioner.
(2) The comparison of a carrier's total adjusted capital to
any of its RBC levels is a regulatory tool that may indicate the
need for possible corrective action with respect to the carrier,
and is not a means to rank carriers generally. Therefore,
except as otherwise required under the provisions of RCW
48.43.300 through 48.43.370, the making, publishing, disseminating, circulating, or placing before the public, or causing, directly or indirectly, to be made, published, disseminated, circulated, or placed before the public, in a newspaper,
magazine, or other publication, or in the form of a notice, circular, pamphlet, letter, or poster, or over any radio or television station, or in any other way, an advertisement,
announcement, or statement containing an assertion, representation, or statement with regard to the RBC levels of any
[Title 48 RCW—page 275]
48.43.340
Title 48 RCW: Insurance
carrier, or of any component derived in the calculation, by
any carrier, agent, broker, or other person engaged in any
manner in the insurance business would be misleading and is
therefore prohibited. However, if any materially false statement with respect to the comparison regarding a carrier's total
adjusted capital to its RBC levels (or any of them) or an inappropriate comparison of any other amount to the carrier's
RBC levels is published in any written publication and the
carrier is able to demonstrate to the commissioner with substantial proof the falsity of such statement, or the inappropriateness, as the case may be, then the carrier may publish an
announcement in a written publication if the sole purpose of
the announcement is to rebut the materially false statement.
(3) The RBC instructions, RBC reports, adjusted RBC
reports, RBC plans, and revised RBC plans are intended
solely for use by the commissioner in monitoring the solvency of carriers and the need for possible corrective action
with respect to carriers and shall not be used by the commissioner for ratemaking nor considered or introduced as evidence in any rate proceeding nor used by the commissioner to
calculate or derive any elements of an appropriate premium
level or rate of return for any line of insurance that a carrier
or any affiliate is authorized to write. [1998 c 241 § 8.]
event, the failure of the foreign or alien carrier to file an RBC
plan with the commissioner is grounds to order the carrier to
cease and desist from writing new insurance business in this
state.
(3) In the event of a mandatory control level event with
respect to any foreign or alien carrier, if no domiciliary
receiver has been appointed with respect to the foreign or
alien carrier under the rehabilitation and liquidation statute
applicable in the state of domicile of the foreign or alien carrier, the commissioner may apply for an order under RCW
48.31.080 or 48.31.090 to conserve the assets within this
state of foreign or alien carriers, and the occurrence of the
mandatory control level event is considered adequate
grounds for the application. [1998 c 241 § 10.]
48.43.350
48.43.350 No liability or cause of action against commissioner or department. There is no liability on the part
of, and no cause of action shall arise against, the commissioner or insurance department or its employees or agents for
any action taken by them in the performance of their powers
and duties under RCW 48.43.300 through 48.43.370. [1998
c 241 § 11.]
48.43.355
48.43.340
48.43.340 Powers or duties of commissioner not limited—Rules. (1) The provisions of RCW 48.43.300 through
48.43.370 are supplemental to any other provisions of the
laws and rules of this state, and shall not preclude or limit any
other powers or duties of the commissioner under such laws
and rules, including, but not limited to, chapter 48.31 RCW.
(2) The commissioner may adopt reasonable rules necessary for the implementation of RCW 48.43.300 through
48.43.370. [1998 c 241 § 9.]
48.43.345
48.43.345 Foreign or alien carriers—Required RBC
report—Commissioner may require RBC plan—Mandatory control level event. (1) Any foreign or alien carrier
shall, upon the written request of the commissioner, submit to
the commissioner an RBC report as of the end of the calendar
year just ended by the later of:
(a) The date an RBC report would be required to be filed
by a domestic carrier under RCW 48.43.300 through
48.43.370; or
(b) Fifteen days after the request is received by the foreign or alien carrier. Any foreign or alien carrier shall, at the
written request of the commissioner, promptly submit to the
commissioner a copy of any RBC plan that is filed with the
insurance commissioner of any other state.
(2) In the event of a company action level event, regulatory action level event, or authorized control level event with
respect to any foreign or alien carrier as determined under the
RBC statute applicable in the state of domicile of the carrier
or, if no RBC statute is in force in that state, under the provisions of RCW 48.43.300 through 48.43.370, if the insurance
commissioner of the state of domicile of the foreign or alien
carrier fails to require the foreign or alien carrier to file an
RBC plan in the manner specified under that state's RBC statute or, if no RBC statute is in force in that state, under RCW
48.43.310, the commissioner may require the foreign or alien
carrier to file an RBC plan with the commissioner. In this
[Title 48 RCW—page 276]
48.43.355 Notice by commissioner to carrier—When
effective. All notices by the commissioner to a carrier that
may result in regulatory action are effective upon dispatch if
transmitted by registered or certified mail, or in the case of
any other transmission, are effective upon the carrier's receipt
of such notice. [1998 c 241 § 12.]
48.43.360
48.43.360 Initial RBC reports—Calculation of initial
RBC levels—Subsequent reports. For RBC reports to be
filed by carriers commencing operations after June 11, 1998,
those carriers shall calculate the initial RBC levels using
financial projections, considering managed care arrangements, for its first full year in operation. Such projections,
including the risk-based capital requirement, must be
included as part of a comprehensive business plan that is submitted as part of the application for registration under RCW
48.44.040 and 48.46.030. The resulting RBC requirement
shall be reported in the first RBC report submitted under
RCW 48.43.305. For subsequent reports, the RBC results
using actual financial data shall be included. [1998 c 241 §
13.]
48.43.365
48.43.365 RBC report for 1998 calendar year. The
first RBC report required under RCW 48.43.305 shall be
filed on or prior to March 1, 1999, for the 1998 calendar year.
[1998 c 241 § 14.]
48.43.366
48.43.366 Self-funded multiple employer welfare
arrangements. A self-funded multiple employer welfare
arrangement, as defined in RCW 48.125.010, is subject to the
same RBC reporting requirements as a domestic carrier under
RCW 48.43.300 through 48.43.370. [2004 c 260 § 19.]
Severability—Effective date—2004 c 260: See RCW 48.125.900 and
48.125.901.
48.43.370
48.43.370 RBC standards not applicable to certain
carriers. RCW 48.43.300 through 48.43.370 shall not apply
(2004 Ed.)
Insurance Reform
to a carrier which is subject to the provisions of RCW
48.05.430 through 48.05.490. [1998 c 241 § 15.]
48.43.500
48.43.500 Intent—Purpose—2000 c 5. It is the intent
of the legislature that enrollees covered by health plans
receive quality health care designed to maintain and improve
their health. The purpose of chapter 5, Laws of 2000 is to
ensure that health plan enrollees:
(1) Have improved access to information regarding their
health plans;
(2) Have sufficient and timely access to appropriate
health care services, and choice among health care providers;
(3) Are assured that health care decisions are made by
appropriate medical personnel;
(4) Have access to a quick and impartial process for
appealing plan decisions;
(5) Are protected from unnecessary invasions of health
care privacy; and
(6) Are assured that personal health care information will
be used only as necessary to obtain and pay for health care or
to improve the quality of care. [2000 c 5 § 1.]
Application—2000 c 5: "This act applies to: Health plans as defined
in RCW 48.43.005 offered, renewed, or issued by a carrier; medical assistance provided under RCW 74.09.522; the basic health plan offered under
chapter 70.47 RCW; and health benefits provided under chapter 41.05
RCW." [2000 c 5 § 19.]
Short title—2000 c 5: "This act may be known and cited as the health
care patient bill of rights." [2000 c 5 § 22.]
Captions not law—2000 c 5: "Captions used in this act are not any part
of the law." [2000 c 5 § 24.]
Construction—2000 c 5: "To the extent permitted by law, if any provision of this act conflicts with state or federal law, such provision must be
construed in a manner most favorable to the enrollee." [2000 c 5 § 26.]
Severability—2000 c 5: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [2000 c 5 § 27.]
Application to contracts—Effective dates—2000 c 5: "(1) Except as
provided in subsections (2) and (3) of this section, this act applies to contracts entered into or renewing after June 30, 2001.
(2) Sections 13, 14, 15, and 16 of this act take effect January 1, 2001.
(3) Section 29 of this act takes effect July 1, 2001." [2000 c 5 § 28.]
48.43.505
48.43.505 Requirement to protect enrollee's right to
privacy or confidential services—Rules. (1) Health carriers and insurers shall adopt policies and procedures that conform administrative, business, and operational practices to
protect an enrollee's right to privacy or right to confidential
health care services granted under state or federal laws.
(2) The commissioner may adopt rules to implement this
section after considering relevant standards adopted by
national managed care accreditation organizations and the
national association of insurance commissioners, and after
considering the effect of those standards on the ability of carriers to undertake enrollee care management and disease
management programs. [2000 c 5 § 5.]
Application—Short title—Captions not law—Construction—Severability—Application to contracts—Effective dates—2000 c 5: See
notes following RCW 48.43.500.
48.43.510
48.43.510 Carrier required to disclose health plan
information—Marketing and advertising restrictions—
Rules. (1) A carrier that offers a health plan may not offer to
(2004 Ed.)
48.43.510
sell a health plan to an enrollee or to any group representative, agent, employer, or enrollee representative without first
offering to provide, and providing upon request, the following information before purchase or selection:
(a) A listing of covered benefits, including prescription
drug benefits, if any, a copy of the current formulary, if any is
used, definitions of terms such as generic versus brand name,
and policies regarding coverage of drugs, such as how they
become approved or taken off the formulary, and how consumers may be involved in decisions about benefits;
(b) A listing of exclusions, reductions, and limitations to
covered benefits, and any definition of medical necessity or
other coverage criteria upon which they may be based;
(c) A statement of the carrier's policies for protecting the
confidentiality of health information;
(d) A statement of the cost of premiums and any enrollee
cost-sharing requirements;
(e) A summary explanation of the carrier's grievance
process;
(f) A statement regarding the availability of a point-ofservice option, if any, and how the option operates; and
(g) A convenient means of obtaining lists of participating
primary care and specialty care providers, including disclosure of network arrangements that restrict access to providers
within any plan network. The offer to provide the information
referenced in this subsection (1) must be clearly and prominently displayed on any information provided to any prospective enrollee or to any prospective group representative,
agent, employer, or enrollee representative.
(2) Upon the request of any person, including a current
enrollee, prospective enrollee, or the insurance commissioner, a carrier must provide written information regarding
any health care plan it offers, that includes the following written information:
(a) Any documents, instruments, or other information
referred to in the medical coverage agreement;
(b) A full description of the procedures to be followed by
an enrollee for consulting a provider other than the primary
care provider and whether the enrollee's primary care provider, the carrier's medical director, or another entity must
authorize the referral;
(c) Procedures, if any, that an enrollee must first follow
for obtaining prior authorization for health care services;
(d) A written description of any reimbursement or payment arrangements, including, but not limited to, capitation
provisions, fee-for-service provisions, and health care delivery efficiency provisions, between a carrier and a provider or
network;
(e) Descriptions and justifications for provider compensation programs, including any incentives or penalties that
are intended to encourage providers to withhold services or
minimize or avoid referrals to specialists;
(f) An annual accounting of all payments made by the
carrier which have been counted against any payment limitations, visit limitations, or other overall limitations on a person's coverage under a plan;
(g) A copy of the carrier's grievance process for claim or
service denial and for dissatisfaction with care; and
(h) Accreditation status with one or more national managed care accreditation organizations, and whether the carrier
tracks its health care effectiveness performance using the
[Title 48 RCW—page 277]
48.43.515
Title 48 RCW: Insurance
health employer data information set (HEDIS), whether it
publicly reports its HEDIS data, and how interested persons
can access its HEDIS data.
(3) Each carrier shall provide to all enrollees and prospective enrollees a list of available disclosure items.
(4) Nothing in this section requires a carrier or a health
care provider to divulge proprietary information to an
enrollee, including the specific contractual terms and conditions between a carrier and a provider.
(5) No carrier may advertise or market any health plan to
the public as a plan that covers services that help prevent illness or promote the health of enrollees unless it:
(a) Provides all clinical preventive health services provided by the basic health plan, authorized by chapter 70.47
RCW;
(b) Monitors and reports annually to enrollees on standardized measures of health care and satisfaction of all
enrollees in the health plan. The state department of health
shall recommend appropriate standardized measures for this
purpose, after consideration of national standardized measurement systems adopted by national managed care accreditation organizations and state agencies that purchase managed health care services; and
(c) Makes available upon request to enrollees its integrated plan to identify and manage the most prevalent diseases within its enrolled population, including cancer, heart
disease, and stroke.
(6) No carrier may preclude or discourage its providers
from informing an enrollee of the care he or she requires,
including various treatment options, and whether in the providers' view such care is consistent with the plan's health coverage criteria, or otherwise covered by the enrollee's medical
coverage agreement with the carrier. No carrier may prohibit,
discourage, or penalize a provider otherwise practicing in
compliance with the law from advocating on behalf of an
enrollee with a carrier. Nothing in this section shall be construed to authorize a provider to bind a carrier to pay for any
service.
(7) No carrier may preclude or discourage enrollees or
those paying for their coverage from discussing the comparative merits of different carriers with their providers. This prohibition specifically includes prohibiting or limiting providers participating in those discussions even if critical of a carrier.
(8) Each carrier must communicate enrollee information
required in chapter 5, Laws of 2000 by means that ensure that
a substantial portion of the enrollee population can make use
of the information.
(9) The commissioner may adopt rules to implement this
section. In developing rules to implement this section, the
commissioner shall consider relevant standards adopted by
national managed care accreditation organizations and state
agencies that purchase managed health care services. [2000
c 5 § 6.]
Application—Short title—Captions not law—Construction—Severability—Application to contracts—Effective dates—2000 c 5: See
notes following RCW 48.43.500.
48.43.515
48.43.515 Access to appropriate health services—
Enrollee options—Rules. (1) Each enrollee in a health plan
must have adequate choice among health care providers.
[Title 48 RCW—page 278]
(2) Each carrier must allow an enrollee to choose a primary care provider who is accepting new enrollees from a list
of participating providers. Enrollees also must be permitted
to change primary care providers at any time with the change
becoming effective no later than the beginning of the month
following the enrollee's request for the change.
(3) Each carrier must have a process whereby an enrollee
with a complex or serious medical or psychiatric condition
may receive a standing referral to a participating specialist for
an extended period of time.
(4) Each carrier must provide for appropriate and timely
referral of enrollees to a choice of specialists within the plan
if specialty care is warranted. If the type of medical specialist
needed for a specific condition is not represented on the specialty panel, enrollees must have access to nonparticipating
specialty health care providers.
(5) Each carrier shall provide enrollees with direct access
to the participating chiropractor of the enrollee's choice for
covered chiropractic health care without the necessity of
prior referral. Nothing in this subsection shall prevent carriers
from restricting enrollees to seeing only providers who have
signed participating provider agreements or from utilizing
other managed care and cost containment techniques and processes. For purposes of this subsection, "covered chiropractic
health care" means covered benefits and limitations related to
chiropractic health services as stated in the plan's medical
coverage agreement, with the exception of any provisions
related to prior referral for services.
(6) Each carrier must provide, upon the request of an
enrollee, access by the enrollee to a second opinion regarding
any medical diagnosis or treatment plan from a qualified participating provider of the enrollee's choice.
(7) Each carrier must cover services of a primary care
provider whose contract with the plan or whose contract with
a subcontractor is being terminated by the plan or subcontractor without cause under the terms of that contract for at least
sixty days following notice of termination to the enrollees or,
in group coverage arrangements involving periods of open
enrollment, only until the end of the next open enrollment
period. The provider's relationship with the carrier or subcontractor must be continued on the same terms and conditions
as those of the contract the plan or subcontractor is terminating, except for any provision requiring that the carrier assign
new enrollees to the terminated provider.
(8) Every carrier shall meet the standards set forth in this
section and any rules adopted by the commissioner to implement this section. In developing rules to implement this section, the commissioner shall consider relevant standards
adopted by national managed care accreditation organizations and state agencies that purchase managed health care
services. [2000 c 5 § 7.]
Application—Short title—Captions not law—Construction—Severability—Application to contracts—Effective dates—2000 c 5: See
notes following RCW 48.43.500.
48.43.520
48.43.520 Requirement to maintain a documented
utilization review program description and written utilization review criteria—Rules. (1) Carriers that offer a
health plan shall maintain a documented utilization review
program description and written utilization review criteria
based on reasonable medical evidence. The program must
(2004 Ed.)
Insurance Reform
include a method for reviewing and updating criteria. Carriers shall make clinical protocols, medical management standards, and other review criteria available upon request to participating providers.
(2) The commissioner shall adopt, in rule, standards for
this section after considering relevant standards adopted by
national managed care accreditation organizations and state
agencies that purchase managed health care services.
(3) A carrier shall not be required to use medical evidence or standards in its utilization review of religious nonmedical treatment or religious nonmedical nursing care.
[2000 c 5 § 8.]
Application—Short title—Captions not law—Construction—Severability—Application to contracts—Effective dates—2000 c 5: See
notes following RCW 48.43.500.
48.43.525
48.43.525 Prohibition against retrospective denial of
health plan coverage—Rules. (1) A health carrier that
offers a health plan shall not retrospectively deny coverage
for emergency and nonemergency care that had prior authorization under the plan's written policies at the time the care
was rendered.
(2) The commissioner shall adopt, in rule, standards for
this section after considering relevant standards adopted by
national managed care accreditation organizations and state
agencies that purchase managed health care services. [2000
c 5 § 9.]
Application—Short title—Captions not law—Construction—Severability—Application to contracts—Effective dates—2000 c 5: See
notes following RCW 48.43.500.
48.43.530
48.43.530 Requirement for carriers to have a comprehensive grievance process—Carrier's duties—Procedures—Appeals—Rules. (1) Each carrier that offers a
health plan must have a fully operational, comprehensive
grievance process that complies with the requirements of this
section and any rules adopted by the commissioner to implement this section. For the purposes of this section, the commissioner shall consider grievance process standards adopted
by national managed care accreditation organizations and
state agencies that purchase managed health care services.
(2) Each carrier must process as a complaint an enrollee's
expression of dissatisfaction about customer service or the
quality or availability of a health service. Each carrier must
implement procedures for registering and responding to oral
and written complaints in a timely and thorough manner.
(3) Each carrier must provide written notice to an
enrollee or the enrollee's designated representative, and the
enrollee's provider, of its decision to deny, modify, reduce, or
terminate payment, coverage, authorization, or provision of
health care services or benefits, including the admission to or
continued stay in a health care facility.
(4) Each carrier must process as an appeal an enrollee's
written or oral request that the carrier reconsider: (a) Its resolution of a complaint made by an enrollee; or (b) its decision
to deny, modify, reduce, or terminate payment, coverage,
authorization, or provision of health care services or benefits,
including the admission to, or continued stay in, a health care
facility. A carrier must not require that an enrollee file a complaint prior to seeking appeal of a decision under (b) of this
subsection.
(2004 Ed.)
48.43.535
(5) To process an appeal, each carrier must:
(a) Provide written notice to the enrollee when the appeal
is received;
(b) Assist the enrollee with the appeal process;
(c) Make its decision regarding the appeal within thirty
days of the date the appeal is received. An appeal must be
expedited if the enrollee's provider or the carrier's medical
director reasonably determines that following the appeal process response timelines could seriously jeopardize the
enrollee's life, health, or ability to regain maximum function.
The decision regarding an expedited appeal must be made
within seventy-two hours of the date the appeal is received;
(d) Cooperate with a representative authorized in writing
by the enrollee;
(e) Consider information submitted by the enrollee;
(f) Investigate and resolve the appeal; and
(g) Provide written notice of its resolution of the appeal
to the enrollee and, with the permission of the enrollee, to the
enrollee's providers. The written notice must explain the carrier's decision and the supporting coverage or clinical reasons
and the enrollee's right to request independent review of the
carrier's decision under RCW 48.43.535.
(6) Written notice required by subsection (3) of this section must explain:
(a) The carrier's decision and the supporting coverage or
clinical reasons; and
(b) The carrier's appeal process, including information,
as appropriate, about how to exercise the enrollee's rights to
obtain a second opinion, and how to continue receiving services as provided in this section.
(7) When an enrollee requests that the carrier reconsider
its decision to modify, reduce, or terminate an otherwise covered health service that an enrollee is receiving through the
health plan and the carrier's decision is based upon a finding
that the health service, or level of health service, is no longer
medically necessary or appropriate, the carrier must continue
to provide that health service until the appeal is resolved. If
the resolution of the appeal or any review sought by the
enrollee under RCW 48.43.535 affirms the carrier's decision,
the enrollee may be responsible for the cost of this continued
health service.
(8) Each carrier must provide a clear explanation of the
grievance process upon request, upon enrollment to new
enrollees, and annually to enrollees and subcontractors.
(9) Each carrier must ensure that the grievance process is
accessible to enrollees who are limited English speakers, who
have literacy problems, or who have physical or mental disabilities that impede their ability to file a grievance.
(10) Each carrier must: Track each appeal until final resolution; maintain, and make accessible to the commissioner
for a period of three years, a log of all appeals; and identify
and evaluate trends in appeals. [2000 c 5 § 10.]
Application—Short title—Captions not law—Construction—Severability—Application to contracts—Effective dates—2000 c 5: See
notes following RCW 48.43.500.
48.43.535
48.43.535 Independent review of health care disputes—System for using certified independent review
organizations—Rules. (1) There is a need for a process for
the fair consideration of disputes relating to decisions by carriers that offer a health plan to deny, modify, reduce, or ter[Title 48 RCW—page 279]
48.43.540
Title 48 RCW: Insurance
minate coverage of or payment for health care services for an
enrollee.
(2) An enrollee may seek review by a certified independent review organization of a carrier's decision to deny, modify, reduce, or terminate coverage of or payment for a health
care service, after exhausting the carrier's grievance process
and receiving a decision that is unfavorable to the enrollee, or
after the carrier has exceeded the timelines for grievances
provided in RCW 48.43.530, without good cause and without
reaching a decision.
(3) The commissioner must establish and use a rotational
registry system for the assignment of a certified independent
review organization to each dispute. The system should be
flexible enough to ensure that an independent review organization has the expertise necessary to review the particular
medical condition or service at issue in the dispute.
(4) Carriers must provide to the appropriate certified
independent review organization, not later than the third business day after the date the carrier receives a request for
review, a copy of:
(a) Any medical records of the enrollee that are relevant
to the review;
(b) Any documents used by the carrier in making the
determination to be reviewed by the certified independent
review organization;
(c) Any documentation and written information submitted to the carrier in support of the appeal; and
(d) A list of each physician or health care provider who
has provided care to the enrollee and who may have medical
records relevant to the appeal. Health information or other
confidential or proprietary information in the custody of a
carrier may be provided to an independent review organization, subject to rules adopted by the commissioner.
(5) The medical reviewers from a certified independent
review organization will make determinations regarding the
medical necessity or appropriateness of, and the application
of health plan coverage provisions to, health care services for
an enrollee. The medical reviewers' determinations must be
based upon their expert medical judgment, after consideration of relevant medical, scientific, and cost-effectiveness
evidence, and medical standards of practice in the state of
Washington. Except as provided in this subsection, the certified independent review organization must ensure that determinations are consistent with the scope of covered benefits as
outlined in the medical coverage agreement. Medical reviewers may override the health plan's medical necessity or appropriateness standards if the standards are determined upon
review to be unreasonable or inconsistent with sound, evidence-based medical practice.
(6) Once a request for an independent review determination has been made, the independent review organization
must proceed to a final determination, unless requested otherwise by both the carrier and the enrollee or the enrollee's representative.
(7) Carriers must timely implement the certified independent review organization's determination, and must pay
the certified independent review organization's charges.
(8) When an enrollee requests independent review of a
dispute under this section, and the dispute involves a carrier's
decision to modify, reduce, or terminate an otherwise covered health service that an enrollee is receiving at the time the
[Title 48 RCW—page 280]
request for review is submitted and the carrier's decision is
based upon a finding that the health service, or level of health
service, is no longer medically necessary or appropriate, the
carrier must continue to provide the health service if
requested by the enrollee until a determination is made under
this section. If the determination affirms the carrier's decision, the enrollee may be responsible for the cost of the continued health service.
(9) A certified independent review organization may
notify the office of the insurance commissioner if, based
upon its review of disputes under this section, it finds a pattern of substandard or egregious conduct by a carrier.
(10)(a) The commissioner shall adopt rules to implement
this section after considering relevant standards adopted by
national managed care accreditation organizations.
(b) This section is not intended to supplant any existing
authority of the office of the insurance commissioner under
this title to oversee and enforce carrier compliance with
applicable statutes and rules. [2000 c 5 § 11.]
Application—Short title—Captions not law—Construction—Severability—Application to contracts—Effective dates—2000 c 5: See
notes following RCW 48.43.500.
48.43.540
48.43.540 Requirement to designate a licensed medical director—Exemption. Any carrier that offers a health
plan and any self-insured health plan subject to the jurisdiction of Washington state shall designate a medical director
who is licensed under chapter 18.57 or 18.71 RCW. However, a naturopathic or complementary alternative health
plan, which provides solely complementary alternative health
care to individuals, groups, or health plans, may have a medical director licensed under chapter 18.36A RCW. A carrier
that offers dental only coverage shall designate a dental director who is licensed under chapter 18.32 RCW, or licensed in
a state that has been determined by the dental quality assurance commission to have substantially equivalent licensing
standards to those of Washington. A health plan or selfinsured health plan that offers only religious nonmedical
treatment or religious nonmedical nursing care shall not be
required to have a medical director. [2002 c 103 § 1; 2000 c
5 § 13.]
Application—Short title—Captions not law—Construction—Severability—Application to contracts—Effective dates—2000 c 5: See
notes following RCW 48.43.500.
48.43.545
48.43.545 Standard of care—Liability—Causes of
action—Defense—Exception. (1)(a) A health carrier shall
adhere to the accepted standard of care for health care providers under chapter 7.70 RCW when arranging for the provision of medically necessary health care services to its enrollees. A health carrier shall be liable for any and all harm proximately caused by its failure to follow that standard of care
when the failure resulted in the denial, delay, or modification
of the health care service recommended for, or furnished to,
an enrollee.
(b) A health carrier is also liable for damages under (a) of
this subsection for harm to an enrollee proximately caused by
health care treatment decisions that result from a failure to
follow the accepted standard of care made by its:
(i) Employees;
(ii) Agents; or
(2004 Ed.)
Health Care Services
(iii) Ostensible agents who are acting on its behalf and
over whom it has the right to exercise influence or control or
has actually exercised influence or control.
(2) The provisions of this section may not be waived,
shifted, or modified by contract or agreement and responsibility for the provisions shall be a duty that cannot be delegated. Any effort to waive, modify, delegate, or shift liability
for a breach of the duty established by this section, through a
contract for indemnification or otherwise, is invalid.
(3) This section does not create any new cause of action,
or eliminate any presently existing cause of action, with
respect to health care providers and health care facilities that
are included in and subject to the provisions of chapter 7.70
RCW.
(4) It is a defense to any action or liability asserted under
this section against a health carrier that:
(a) The health care service in question is not a benefit
provided under the plan or the service is subject to limitations
under the plan that have been exhausted;
(b) Neither the health carrier, nor any employee, agent,
or ostensible agent for whose conduct the health carrier is liable under subsection (1)(b) of this section, controlled, influenced, or participated in the health care decision; or
(c) The health carrier did not deny or unreasonably delay
payment for treatment prescribed or recommended by a participating health care provider for the enrollee.
(5) This section does not create any liability on the part
of an employer, an employer group purchasing organization
that purchases coverage or assumes risk on behalf of its
employers, or a governmental agency that purchases coverage on behalf of individuals and families. The governmental
entity established to offer and provide health insurance to
public employees, public retirees, and their covered dependents under RCW 41.05.140 is subject to liability under this
section.
(6) Nothing in any law of this state prohibiting a health
carrier from practicing medicine or being licensed to practice
medicine may be asserted as a defense by the health carrier in
an action brought against it under this section.
(7)(a) A person may not maintain a cause of action under
this section against a health carrier unless:
(i) The affected enrollee has suffered substantial harm.
As used in this subsection, "substantial harm" means loss of
life, loss or significant impairment of limb, bodily or cognitive function, significant disfigurement, or severe or chronic
physical pain; and
(ii) The affected enrollee or the enrollee's representative
has exercised the opportunity established in RCW 48.43.535
to seek independent review of the health care treatment decision.
(b) This subsection (7) does not prohibit an enrollee from
pursuing other appropriate remedies, including injunctive
relief, a declaratory judgment, or other relief available under
law, if its requirements place the enrollee's health in serious
jeopardy.
(8) In an action against a health carrier, a finding that a
health care provider is an employee, agent, or ostensible
agent of such a health carrier shall not be based solely on
proof that the person's name appears in a listing of approved
physicians or health care providers made available to enrollees under a health plan.
(2004 Ed.)
Chapter 48.44
(9) Any action under this section shall be commenced
within three years of the completion of the independent
review process.
(10) This section does not apply to workers' compensation insurance under Title 51 RCW. [2000 c 5 § 17.]
Application—Short title—Captions not law—Construction—Severability—Application to contracts—Effective dates—2000 c 5: See
notes following RCW 48.43.500.
48.43.550
48.43.550 Delegation of duties—Carrier accountability. Each carrier is accountable for and must oversee any
activities required by chapter 5, Laws of 2000 that it delegates to any subcontractor. No contract with a subcontractor
executed by the health carrier or the subcontractor may
relieve the health carrier of its obligations to any enrollee for
the provision of health care services or of its responsibility
for compliance with statutes or rules. [2000 c 5 § 18.]
Application—Short title—Captions not law—Construction—Severability—Application to contracts—Effective dates—2000 c 5: See
notes following RCW 48.43.500.
48.43.901
48.43.901 Captions not law—1996 c 312. Captions
used in this act do not constitute part of the law. [1996 c 312
§ 6.]
48.43.902 Effective date—1996 c 312. This act shall
take effect July 1, 1996. [1996 c 312 § 8.]
48.43.902
48.43.903
48.43.903 Severability—1998 c 241. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1998 c 241 § 17.]
Chapter 48.44
Chapter 48.44 RCW
HEALTH CARE SERVICES
Sections
48.44.010
48.44.011
48.44.013
48.44.015
48.44.016
48.44.017
48.44.020
48.44.022
48.44.023
48.44.024
48.44.026
48.44.030
48.44.033
48.44.035
48.44.037
48.44.039
Definitions.
Agent—Definition—License required—Application, issuance, renewal, fees—Penalties involving license.
Filings with secretary of state—Copy for commissioner.
Registration by health care service contractors required—Penalty.
Unregistered activities—Acts committed in this state—Sanctions.
Schedule of rates for individual contracts—Loss ratio—
Remittance of premiums—Definitions.
Contracts for services—Examination of contract forms by
commissioner—Grounds for disapproval—Liability of participant.
Calculation of premiums—Adjusted community rate—Definitions.
Health plan benefits for small employers—Coverage—
Exemption from statutory requirements—Premium rates—
Requirements for providing coverage for small employers.
Requirements for plans offered to small employers—Definitions.
Payment for certain health care services.
Underwriting of indemnity by insurance policy, bond, securities, or cash deposit.
Financial failure—Supervision of commissioner—Priority of
distribution of assets.
Limited health care service—Uncovered expenditures—Minimum net worth requirements.
Minimum net worth—Requirement to maintain—Determination of amount.
Minimum net worth—Domestic or foreign health care service
contractor.
[Title 48 RCW—page 281]
48.44.010
48.44.040
48.44.050
48.44.055
48.44.057
48.44.060
48.44.070
48.44.080
48.44.090
48.44.095
48.44.100
48.44.110
48.44.120
48.44.130
48.44.140
48.44.145
48.44.150
48.44.160
48.44.164
48.44.166
48.44.170
48.44.180
48.44.200
48.44.210
48.44.212
48.44.220
48.44.225
48.44.230
48.44.240
48.44.241
48.44.245
48.44.250
48.44.260
48.44.270
48.44.290
48.44.299
48.44.300
48.44.305
48.44.309
48.44.310
48.44.315
48.44.320
48.44.325
48.44.330
48.44.335
48.44.340
48.44.342
48.44.344
48.44.350
48.44.360
48.44.370
48.44.380
48.44.390
48.44.400
48.44.420
48.44.430
48.44.440
Title 48 RCW: Insurance
Registration with commissioner—Fee.
Rules and regulations.
Plan for handling insolvency—Commissioner's review.
Insolvency—Commissioner's duties—Participants' options—
Allocation of coverage.
Penalty.
Contracts to be filed with commissioner.
Master lists of contractor's participating providers—Filing
with commissioner—Notice of termination or participation.
Refusal to register corporate, etc., contractor if name confusing with existing contractor or insurance company.
Annual financial statement—Filings—Contents—Fee—Penalty for failure to file.
Filing inaccurate financial statement prohibited.
False representation, advertising.
Misrepresentations of contract terms, benefits, etc.
Future dividends or refunds—When permissible.
Misleading comparisons to terminate or retain contract.
Examination of contractors—Duties of contractor, powers of
commissioner—Independent audit reports.
Certificate of registration not an endorsement—Display in
solicitation prohibited.
Revocation, suspension, refusal of registration—Hearing—
Cease and desist orders, injunctive action—Grounds.
Notice of suspension, revocation, or refusal to be given contractor—Authority of agents.
Fine in addition to or in lieu of suspension, revocation, or
refusal.
Hearings and appeals.
Enforcement.
Individual health care service plan contracts—Coverage of
dependent child not to terminate because of developmental
disability or physical handicap.
Group health care service plan contracts—Coverage of dependent child not to terminate because of developmental disability or physical handicap.
Coverage of dependent children to include newborn infants
and congenital anomalies from moment of birth—Notification period.
Discrimination prohibited.
Podiatrists not excluded.
Individual health service plan contract—Return within ten
days of delivery—Refunds—Void from beginning—Notice
required.
Chemical dependency benefits—Provisions of group contracts
delivered or renewed after January 1, 1988.
Chemical dependency benefits—RCW 48.21.160 through
48.21.190, 48.44.240 inapplicable, when.
"Chemical dependency" defined.
Payment of premium by employee in event of suspension of
compensation due to labor dispute.
Notice of reason for cancellation, denial, or refusal to renew
contract.
Immunity from libel or slander.
Registered nurses or advanced registered nurses.
Legislative finding.
Podiatry—Benefits not to be denied.
When injury caused by intoxication or use of narcotics.
Legislative finding.
Chiropractic care, coverage required, exceptions.
Diabetes coverage—Definitions.
Home health care, hospice care, optional coverage required—
Standards, limitations, restrictions—Rules—Medicare supplemental contracts excluded.
Mammograms—Insurance coverage.
Reconstructive breast surgery.
Mastectomy, lumpectomy.
Mental health treatment, optional supplemental coverage—
Waiver.
Mental health treatment—Waiver of preauthorization for persons involuntarily committed.
Benefits for prenatal diagnosis of congenital disorders—Contracts entered into or renewed on or after January 1, 1990.
Financial interests of health care service contractors,
restricted—Exceptions, regulations.
Continuation option to be offered.
Conversion contract to be offered—Exceptions, conditions.
Conversion contract—Restrictions and requirements.
Modification of basis of agreement, endorsement required.
Continuance provisions for former family members.
Coverage for adopted children.
Cancellation of rider.
Phenylketonuria.
[Title 48 RCW—page 282]
48.44.450
48.44.460
48.44.465
48.44.470
48.44.500
48.44.530
48.44.535
48.44.540
48.44.545
48.44.550
48.44.555
Neurodevelopmental therapies—Employer-sponsored group
contracts.
Temporomandibular joint disorders—Insurance coverage.
Prescriptions—Preapproval of individual claims—Subsequent
rejection prohibited—Written record required.
Nonresident pharmacies.
Denturist services.
Disclosure of certain material transactions—Report—Information is confidential.
Material acquisitions or dispositions.
Asset acquisitions—Asset dispositions.
Report of a material acquisition or disposition of assets—
Information required.
Material nonrenewals, cancellations, or revisions of ceded
reinsurance agreements.
Report of a material nonrenewal, cancellation, or revision of
ceded reinsurance agreements—Information required.
Agents of health care service contractors, additional regulations applicable:
RCW 48.17.065.
48.44.010
48.44.010 Definitions. For the purposes of this chapter:
(1) "Health care services" means and includes medical,
surgical, dental, chiropractic, hospital, optometric, podiatric,
pharmaceutical, ambulance, custodial, mental health, and
other therapeutic services.
(2) "Provider" means any health professional, hospital,
or other institution, organization, or person that furnishes
health care services and is licensed to furnish such services.
(3) "Health care service contractor" means any corporation, cooperative group, or association, which is sponsored by
or otherwise intimately connected with a provider or group of
providers, who or which not otherwise being engaged in the
insurance business, accepts prepayment for health care services from or for the benefit of persons or groups of persons
as consideration for providing such persons with any health
care services.
(4) "Participating provider" means a provider, who or
which has contracted in writing with a health care service
contractor to accept payment from and to look solely to such
contractor according to the terms of the subscriber contract
for any health care services rendered to a person who has previously paid, or on whose behalf prepayment has been made,
to such contractor for such services.
(5) "Enrolled participant" means a person or group of
persons who have entered into a contractual arrangement or
on whose behalf a contractual arrangement has been entered
into with a health care service contractor to receive health
care services.
(6) "Commissioner" means the insurance commissioner.
(7) "Uncovered expenditures" means the costs to the
health care service contractor for health care services that are
the obligation of the health care service contractor for which
an enrolled participant would also be liable in the event of the
health care service contractor's insolvency and for which no
alternative arrangements have been made as provided herein.
The term does not include expenditures for covered services
when a provider has agreed not to bill the enrolled participant
even though the provider is not paid by the health care service
contractor, or for services that are guaranteed, insured or
assumed by a person or organization other than the health
care service contractor.
(8) "Copayment" means an amount specified in a group
or individual contract which is an obligation of an enrolled
participant for a specific service which is not fully prepaid.
(2004 Ed.)
Health Care Services
(9) "Deductible" means the amount an enrolled participant is responsible to pay before the health care service contractor begins to pay the costs associated with treatment.
(10) "Group contract" means a contract for health care
services which by its terms limits eligibility to members of a
specific group. The group contract may include coverage for
dependents.
(11) "Individual contract" means a contract for health
care services issued to and covering an individual. An individual contract may include dependents.
(12) "Carrier" means a health maintenance organization,
an insurer, a health care service contractor, or other entity
responsible for the payment of benefits or provision of services under a group or individual contract.
(13) "Replacement coverage" means the benefits provided by a succeeding carrier.
(14) "Insolvent" or "insolvency" means that the organization has been declared insolvent and is placed under an
order of liquidation by a court of competent jurisdiction.
(15) "Fully subordinated debt" means those debts that
meet the requirements of RCW 48.44.037(3) and are
recorded as equity.
(16) "Net worth" means the excess of total admitted
assets as defined in RCW 48.12.010 over total liabilities but
the liabilities shall not include fully subordinated debt. [1990
c 120 § 1; 1986 c 223 § 1. Prior: 1983 c 286 § 3; 1983 c 154
§ 3; 1980 c 102 § 10; 1965 c 87 § 1; 1961 c 197 § 1; 1947 c
268 § 1; Rem. Supp. 1947 § 6131-10.]
Severability—1983 c 286: See note following RCW 48.44.309.
Severability—1983 c 154: See note following RCW 48.44.299.
48.44.016
for the office of the insurance commissioner to the secretary
of state of any corporate document required to be filed in the
office of the secretary of state, including articles of incorporation and bylaws, and any amendments thereto. The copy
specifically provided for the office of the insurance commissioner shall be in addition to the copies required by the secretary of state and shall clearly indicate on the copy that it is for
delivery to the office of the insurance commissioner. [1998 c
23 § 16.]
48.44.015
48.44.015 Registration by health care service contractors required—Penalty. (1) A person may not in this
state, by mail or otherwise, act as or hold himself or herself
out to be a health care service contractor, as defined in RCW
48.44.010 without first being registered with the commissioner.
(2) The issuance, sale, or offer for sale in this state of
securities of its own issue by any health care service contractor domiciled in this state other than the memberships and
bonds of a nonprofit corporation shall be subject to the provisions of chapter 48.06 RCW relating to obtaining solicitation
permits the same as if health care service contractors were
domestic insurers.
(3) Any person violating any provision of subsection (2)
of this section is guilty of a gross misdemeanor and will, upon
conviction, be fined not more than one thousand dollars or
imprisoned for not more than six months, or both, for each
violation. [2003 c 250 § 7; 1983 c 202 § 2; 1969 c 115 § 6.]
Severability—2003 c 250: See note following RCW 48.01.080.
48.44.016
48.44.011
48.44.011 Agent—Definition—License required—
Application, issuance, renewal, fees—Penalties involving
license. (1) Agent, as used in this chapter, means any person
appointed or authorized by a health care service contractor to
solicit applications for health care service contracts on its
behalf.
(2) No person shall act as or hold himself out to be an
agent of a health care service contractor unless licensed as a
disability insurance agent by this state and appointed by the
health care service contractor on whose behalf solicitations
are to be made.
(3) Applications, appointments, and qualifications for
licenses, the renewal thereof, the fees and issuance of a
license, and the renewal thereof shall be in accordance with
the provisions of chapter 48.17 RCW that are applicable to a
disability insurance agent.
(4) A person holding a valid license in this state as a
health care service contractor agent on July 24, 1983, is not
required to requalify by an examination for the renewal of the
license.
(5) The commissioner may revoke, suspend, or refuse to
issue or renew any agent's license, or levy a fine upon the licensee, in accordance with those provisions of chapter 48.17
RCW that are applicable to a disability insurance agent.
[1983 c 202 § 1; 1969 c 115 § 7.]
48.44.013
48.44.013 Filings with secretary of state—Copy for
commissioner. Health care service contractors and limited
health care service contractors shall send a copy specifically
(2004 Ed.)
48.44.016 Unregistered activities—Acts committed
in this state—Sanctions. (1) As used in this section, "person" has the same meaning as in RCW 48.01.070.
(2) For the purpose of this section, an act is committed in
this state if it is committed, in whole or in part, in the state of
Washington, or affects persons or property within the state
and relates to or involves a health care services contract.
(3) Any person who knowingly violates RCW
48.44.015(1) is guilty of a class B felony punishable under
chapter 9A.20 RCW.
(4) Any criminal penalty imposed under this section is in
addition to, and not in lieu of, any other civil or administrative penalty or sanction otherwise authorized under state law.
(5)(a) If the commissioner has cause to believe that any
person has violated the provisions of RCW 48.44.015(1), the
commissioner may:
(i) Issue and enforce a cease and desist order in accordance with the provisions of RCW 48.02.080; and/or
(ii) Assess a civil penalty of not more than twenty-five
thousand dollars for each violation, after providing notice and
an opportunity for a hearing in accordance with chapters
34.05 and 48.04 RCW.
(b) Upon failure to pay a civil penalty when due, the
attorney general may bring a civil action on behalf of the
commissioner to recover the unpaid penalty. Any amounts
collected by the commissioner must be paid to the state treasurer for the account of the general fund. [2003 c 250 § 8.]
Severability—2003 c 250: See note following RCW 48.01.080.
[Title 48 RCW—page 283]
48.44.017
48.44.017
Title 48 RCW: Insurance
48.44.017 Schedule of rates for individual contracts—Loss ratio—Remittance of premiums—Definitions. (1) The definitions in this subsection apply throughout
this section unless the context clearly requires otherwise.
(a) "Claims" means the cost to the health care service
contractor of health care services, as defined in RCW
48.43.005, provided to a contract holder or paid to or on
behalf of a contract holder in accordance with the terms of a
health benefit plan, as defined in RCW 48.43.005. This
includes capitation payments or other similar payments made
to providers for the purpose of paying for health care services
for an enrollee.
(b) "Claims reserves" means: (i) The liability for claims
which have been reported but not paid; (ii) the liability for
claims which have not been reported but which may reasonably be expected; (iii) active life reserves; and (iv) additional
claims reserves whether for a specific liability purpose or not.
(c) "Earned premiums" means premiums, as defined in
RCW 48.43.005, plus any rate credits or recoupments less
any refunds, for the applicable period, whether received
before, during, or after the applicable period.
(d) "Incurred claims expense" means claims paid during
the applicable period plus any increase, or less any decrease,
in the claims reserves.
(e) "Loss ratio" means incurred claims expense as a percentage of earned premiums.
(f) "Reserves" means: (i) Active life reserves; and (ii)
additional reserves whether for a specific liability purpose or
not.
(2) A health care service contractor shall file, for informational purposes only, a notice of its schedule of rates for its
individual contracts with the commissioner prior to use.
(3) A health care service contractor shall file with the
notice required under subsection (2) of this section supporting documentation of its method of determining the rates
charged. The commissioner may request only the following
supporting documentation:
(a) A description of the health care service contractor's
rate-making methodology;
(b) An actuarially determined estimate of incurred
claims which includes the experience data, assumptions, and
justifications of the health care service contractor's projection;
(c) The percentage of premium attributable in aggregate
for nonclaims expenses used to determine the adjusted community rates charged; and
(d) A certification by a member of the American academy of actuaries, or other person approved by the commissioner, that the adjusted community rate charged can be reasonably expected to result in a loss ratio that meets or exceeds
the loss ratio standard established in subsection (7) of this
section.
(4) The commissioner may not disapprove or otherwise
impede the implementation of the filed rates.
(5) By the last day of May each year any health care service contractor issuing or renewing individual health benefit
plans in this state during the preceding calendar year shall file
for review by the commissioner supporting documentation of
its actual loss ratio for its individual health benefit plans
offered or renewed in this state in aggregate for the preceding
calendar year. The filing shall include aggregate earned pre[Title 48 RCW—page 284]
miums, aggregate incurred claims, and a certification by a
member of the American academy of actuaries, or other person approved by the commissioner, that the actual loss ratio
has been calculated in accordance with accepted actuarial
principles.
(a) At the expiration of a thirty-day period beginning
with the date the filing is received by the commissioner, the
filing shall be deemed approved unless prior thereto the commissioner contests the calculation of the actual loss ratio.
(b) If the commissioner contests the calculation of the
actual loss ratio, the commissioner shall state in writing the
grounds for contesting the calculation to the health care service contractor.
(c) Any dispute regarding the calculation of the actual
loss ratio shall upon written demand of either the commissioner or the health care service contractor be submitted to
hearing under chapters 48.04 and 34.05 RCW.
(6) If the actual loss ratio for the preceding calendar year
is less than the loss ratio standard established in subsection
(7) of this section, a remittance is due and the following shall
apply:
(a) The health care service contractor shall calculate a
percentage of premium to be remitted to the Washington state
health insurance pool by subtracting the actual loss ratio for
the preceding year from the loss ratio established in subsection (7) of this section.
(b) The remittance to the Washington state health insurance pool is the percentage calculated in (a) of this subsection, multiplied by the premium earned from each enrollee in
the previous calendar year. Interest shall be added to the
remittance due at a five percent annual rate calculated from
the end of the calendar year for which the remittance is due to
the date the remittance is made.
(c) All remittances shall be aggregated and such amounts
shall be remitted to the Washington state high risk pool to be
used as directed by the pool board of directors.
(d) Any remittance required to be issued under this section shall be issued within thirty days after the actual loss
ratio is deemed approved under subsection (5)(a) of this section or the determination by an administrative law judge
under subsection (5)(c) of this section.
(7) The loss ratio applicable to this section shall be seventy-four percent minus the premium tax rate applicable to
the health care service contractor's individual health benefit
plans under RCW 48.14.0201. [2001 c 196 § 11; 2000 c 79 §
29.]
Effective date—2001 c 196: See note following RCW 48.20.025.
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
48.44.020 Contracts for services—Examination of
contract forms by commissioner—Grounds for disapproval—Liability of participant. (1) Any health care service contractor may enter into contracts with or for the benefit of persons or groups of persons which require prepayment
for health care services by or for such persons in consideration of such health care service contractor providing one or
more health care services to such persons and such activity
shall not be subject to the laws relating to insurance if the
health care services are rendered by the health care service
contractor or by a participating provider.
48.44.020
(2004 Ed.)
Health Care Services
(2) The commissioner may on examination, subject to
the right of the health care service contractor to demand and
receive a hearing under chapters 48.04 and 34.05 RCW, disapprove any individual or group contract form for any of the
following grounds:
(a) If it contains or incorporates by reference any inconsistent, ambiguous or misleading clauses, or exceptions and
conditions which unreasonably or deceptively affect the risk
purported to be assumed in the general coverage of the contract; or
(b) If it has any title, heading, or other indication of its
provisions which is misleading; or
(c) If purchase of health care services thereunder is being
solicited by deceptive advertising; or
(d) If it contains unreasonable restrictions on the treatment of patients; or
(e) If it violates any provision of this chapter; or
(f) If it fails to conform to minimum provisions or standards required by regulation made by the commissioner pursuant to chapter 34.05 RCW; or
(g) If any contract for health care services with any state
agency, division, subdivision, board, or commission or with
any political subdivision, municipal corporation, or quasimunicipal corporation fails to comply with state law.
(3) In addition to the grounds listed in subsection (2) of
this section, the commissioner may disapprove any group
contract if the benefits provided therein are unreasonable in
relation to the amount charged for the contract.
(4)(a) Every contract between a health care service contractor and a participating provider of health care services
shall be in writing and shall state that in the event the health
care service contractor fails to pay for health care services as
provided in the contract, the enrolled participant shall not be
liable to the provider for sums owed by the health care service contractor. Every such contract shall provide that this
requirement shall survive termination of the contract.
(b) No participating provider, agent, trustee, or assignee
may maintain any action against an enrolled participant to
collect sums owed by the health care service contractor.
[2000 c 79 § 28; 1990 c 120 § 5; 1986 c 223 § 2; 1985 c 283
§ 1; 1983 c 286 § 4; 1973 1st ex.s. c 65 § 1; 1969 c 115 § 1;
1961 c 197 § 2; 1947 c 268 § 2; Rem. Supp. 1947 § 6131-11.]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
Severability—1983 c 286: See note following RCW 48.44.309.
48.44.022 Calculation of premiums—Adjusted community rate—Definitions. (1) Premium rates for health
benefit plans for individuals shall be subject to the following
provisions:
(a) The health care service contractor shall develop its
rates based on an adjusted community rate and may only vary
the adjusted community rate for:
(i) Geographic area;
(ii) Family size;
(iii) Age;
(iv) Tenure discounts; and
(v) Wellness activities.
(b) The adjustment for age in (a)(iii) of this subsection
may not use age brackets smaller than five-year increments
which shall begin with age twenty and end with age sixty48.44.022
(2004 Ed.)
48.44.023
five. Individuals under the age of twenty shall be treated as
those age twenty.
(c) The health care service contractor shall be permitted
to develop separate rates for individuals age sixty-five or
older for coverage for which medicare is the primary payer
and coverage for which medicare is not the primary payer.
Both rates shall be subject to the requirements of this subsection.
(d) The permitted rates for any age group shall be no
more than four hundred twenty-five percent of the lowest rate
for all age groups on January 1, 1996, four hundred percent
on January 1, 1997, and three hundred seventy-five percent
on January 1, 2000, and thereafter.
(e) A discount for wellness activities shall be permitted
to reflect actuarially justified differences in utilization or cost
attributed to such programs.
(f) The rate charged for a health benefit plan offered
under this section may not be adjusted more frequently than
annually except that the premium may be changed to reflect:
(i) Changes to the family composition;
(ii) Changes to the health benefit plan requested by the
individual; or
(iii) Changes in government requirements affecting the
health benefit plan.
(g) For the purposes of this section, a health benefit plan
that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not
contain such a provision, provided that the restrictions of
benefits to network providers result in substantial differences
in claims costs. This subsection does not restrict or enhance
the portability of benefits as provided in RCW 48.43.015.
(h) A tenure discount for continuous enrollment in the
health plan of two years or more may be offered, not to
exceed ten percent.
(2) Adjusted community rates established under this section shall pool the medical experience of all individuals purchasing coverage, and shall not be required to be pooled with
the medical experience of health benefit plans offered to
small employers under RCW 48.44.023.
(3) As used in this section and RCW 48.44.023 "health
benefit plan," "small employer," "adjusted community rates,"
and "wellness activities" mean the same as defined in RCW
48.43.005. [2004 c 244 § 6; 2000 c 79 § 30; 1997 c 231 §
208; 1995 c 265 § 15.]
Application—2004 c 244: See note following RCW 48.21.045.
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
Short title—Part headings and captions not law—Severability—
Effective dates—1997 c 231: See notes following RCW 48.43.005.
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
48.44.023
48.44.023 Health plan benefits for small employers—
Coverage—Exemption from statutory requirements—
Premium rates—Requirements for providing coverage
for small employers. (1)(a) A health care services contractor offering any health benefit plan to a small employer,
either directly or through an association or member-governed
group formed specifically for the purpose of purchasing
health care, may offer and actively market to the small
employer a health benefit plan featuring a limited schedule of
[Title 48 RCW—page 285]
48.44.023
Title 48 RCW: Insurance
covered health care services. Nothing in this subsection shall
preclude a contractor from offering, or a small employer from
purchasing, other health benefit plans that may have more
comprehensive benefits than those included in the product
offered under this subsection. A contractor offering a health
benefit plan under this subsection shall clearly disclose all
covered benefits to the small employer in a brochure filed
with the commissioner.
(b) A health benefit plan offered under this subsection
shall provide coverage for hospital expenses and services
rendered by a physician licensed under chapter 18.57 or
18.71 RCW but is not subject to the requirements of RCW
48.44.225, 48.44.240, 48.44.245, 48.44.290, 48.44.300,
48.44.310, 48.44.320, 48.44.325, 48.44.330, 48.44.335,
48.44.340, 48.44.344, 48.44.360, 48.44.400, 48.44.440,
48.44.450, and 48.44.460.
(2) Nothing in this section shall prohibit a health care
service contractor from offering, or a purchaser from seeking,
health benefit plans with benefits in excess of the health benefit plan offered under subsection (1) of this section. All
forms, policies, and contracts shall be submitted for approval
to the commissioner, and the rates of any plan offered under
this section shall be reasonable in relation to the benefits
thereto.
(3) Premium rates for health benefit plans for small
employers as defined in this section shall be subject to the
following provisions:
(a) The contractor shall develop its rates based on an
adjusted community rate and may only vary the adjusted
community rate for:
(i) Geographic area;
(ii) Family size;
(iii) Age; and
(iv) Wellness activities.
(b) The adjustment for age in (a)(iii) of this subsection
may not use age brackets smaller than five-year increments,
which shall begin with age twenty and end with age sixtyfive. Employees under the age of twenty shall be treated as
those age twenty.
(c) The contractor shall be permitted to develop separate
rates for individuals age sixty-five or older for coverage for
which medicare is the primary payer and coverage for which
medicare is not the primary payer. Both rates shall be subject
to the requirements of this subsection (3).
(d) The permitted rates for any age group shall be no
more than four hundred twenty-five percent of the lowest rate
for all age groups on January 1, 1996, four hundred percent
on January 1, 1997, and three hundred seventy-five percent
on January 1, 2000, and thereafter.
(e) A discount for wellness activities shall be permitted
to reflect actuarially justified differences in utilization or cost
attributed to such programs.
(f) The rate charged for a health benefit plan offered
under this section may not be adjusted more frequently than
annually except that the premium may be changed to reflect:
(i) Changes to the enrollment of the small employer;
(ii) Changes to the family composition of the employee;
(iii) Changes to the health benefit plan requested by the
small employer; or
(iv) Changes in government requirements affecting the
health benefit plan.
[Title 48 RCW—page 286]
(g) Rating factors shall produce premiums for identical
groups that differ only by the amounts attributable to plan
design, with the exception of discounts for health improvement programs.
(h) For the purposes of this section, a health benefit plan
that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not
contain such a provision, provided that the restrictions of
benefits to network providers result in substantial differences
in claims costs. A carrier may develop its rates based on
claims costs due to network provider reimbursement schedules or type of network. This subsection does not restrict or
enhance the portability of benefits as provided in RCW
48.43.015.
(i) Adjusted community rates established under this section shall pool the medical experience of all groups purchasing coverage. However, annual rate adjustments for each
small group health benefit plan may vary by up to plus or
minus four percentage points from the overall adjustment of
a carrier's entire small group pool, such overall adjustment to
be approved by the commissioner, upon a showing by the
carrier, certified by a member of the American academy of
actuaries that: (i) The variation is a result of deductible leverage, benefit design, or provider network characteristics; and
(ii) for a rate renewal period, the projected weighted average
of all small group benefit plans will have a revenue neutral
effect on the carrier's small group pool. Variations of greater
than four percentage points are subject to review by the commissioner, and must be approved or denied within sixty days
of submittal. A variation that is not denied within sixty days
shall be deemed approved. The commissioner must provide
to the carrier a detailed actuarial justification for any denial
within thirty days of the denial.
(4) Nothing in this section shall restrict the right of
employees to collectively bargain for insurance providing
benefits in excess of those provided herein.
(5)(a) Except as provided in this subsection, requirements used by a contractor in determining whether to provide
coverage to a small employer shall be applied uniformly
among all small employers applying for coverage or receiving coverage from the carrier.
(b) A contractor shall not require a minimum participation level greater than:
(i) One hundred percent of eligible employees working
for groups with three or less employees; and
(ii) Seventy-five percent of eligible employees working
for groups with more than three employees.
(c) In applying minimum participation requirements
with respect to a small employer, a small employer shall not
consider employees or dependents who have similar existing
coverage in determining whether the applicable percentage of
participation is met.
(d) A contractor may not increase any requirement for
minimum employee participation or modify any requirement
for minimum employer contribution applicable to a small
employer at any time after the small employer has been
accepted for coverage.
(6) A contractor must offer coverage to all eligible
employees of a small employer and their dependents. A contractor may not offer coverage to only certain individuals or
dependents in a small employer group or to only part of the
(2004 Ed.)
Health Care Services
group. A contractor may not modify a health plan with
respect to a small employer or any eligible employee or
dependent, through riders, endorsements or otherwise, to
restrict or exclude coverage or benefits for specific diseases,
medical conditions, or services otherwise covered by the
plan. [2004 c 244 § 7; 1995 c 265 § 16; 1990 c 187 § 3.]
Application—2004 c 244: See note following RCW 48.21.045.
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
Finding—Intent—Severability—1990 c 187: See notes following
RCW 48.21.045.
48.44.024
48.44.024 Requirements for plans offered to small
employers—Definitions. (1) A health care service contractor may not offer any health benefit plan to any small
employer without complying with RCW 48.44.023(3).
(2) Employers purchasing health plans provided through
associations or through member-governed groups formed
specifically for the purpose of purchasing health care are not
small employers and the plans are not subject to RCW
48.44.023(3).
(3) For purposes of this section, "health benefit plan,"
"health plan," and "small employer" mean the same as
defined in RCW 48.43.005. [2003 c 248 § 15; 1995 c 265 §
23.]
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
48.44.026
48.44.026 Payment for certain health care services.
Checks in payment for claims pursuant to any health care service contract for health care services provided by persons
licensed or regulated under chapters 18.25, 18.29, 18.30,
18.32, 18.53, 18.57, 18.64, 18.71, 18.73, 18.74, 18.83, or
18.79 RCW, as it applies to registered nurses and advanced
registered nurse practitioners, where the provider is not a participating provider under a contract with the health care service contractor, shall be made out to both the provider and the
enrolled participant with the provider as the first named
payee, jointly, to require endorsement by each: PROVIDED,
That payment shall be made in the single name of the
enrolled participant if the enrolled participant as part of his or
her claim furnishes evidence of prepayment to the health care
service provider: AND PROVIDED FURTHER, That nothing in this section shall preclude a health care service contractor from voluntarily issuing payment in the single name of the
provider. [1999 c 130 § 1; 1994 sp.s. c 9 § 732; 1990 c 120 §
6; 1989 c 122 § 1; 1984 c 283 § 1; 1982 c 168 § 1.]
Severability—Headings and captions not law—Effective date—
1994 sp.s. c 9: See RCW 18.79.900 through 18.79.902.
48.44.030
48.44.030 Underwriting of indemnity by insurance
policy, bond, securities, or cash deposit. If any of the
health care services which are promised in any such agreement are not to be performed by the health care service contractor, or by a participating provider, such activity shall not
be subject to the laws relating to insurance, provided provision is made for reimbursement or indemnity of the persons
who have previously paid, or on whose behalf prepayment
has been made, for such services. Such reimbursement or
indemnity shall either be underwritten by an insurance company authorized to write accident, health and disability insur(2004 Ed.)
48.44.033
ance in the state or guaranteed by a surety company authorized to do business in this state, or guaranteed by a deposit of
cash or securities eligible for investment by insurers pursuant
to chapter 48.13 RCW, with the insurance commissioner, as
hereinafter provided. If the reimbursement or indemnity is
underwritten by an insurance company, the contract or policy
of insurance may designate the health care service contractor
as the named insured, but shall be for the benefit of the persons who have previously paid, or on whose behalf prepayment has been made, for such health care services. If the
reimbursement or indemnity is guaranteed by a surety company, the surety bond shall designate the state of Washington
as the named obligee, but shall be for the benefit of the persons who have previously paid, or on whose behalf prepayment has been made, for such health care services, and shall
be in such amount as the insurance commissioner shall direct,
but in no event in a sum greater than the amount of one hundred fifty thousand dollars or the amount necessary to cover
incurred but unpaid reimbursement or indemnity benefits as
reported in the last annual statement filed with the insurance
commissioner, and adjusted to reflect known or anticipated
increases or decreases during the ensuing year, plus an
amount of unearned prepayments applicable to reimbursement or indemnity benefits satisfactory to the insurance commissioner, whichever amount is greater. A copy of such
insurance policy or surety bond, as the case may be, and any
modification thereof, shall be filed with the insurance commissioner. If the reimbursement or indemnity is guaranteed
by a deposit of cash or securities, such deposit shall be in
such amount as the insurance commissioner shall direct, but
in no event in a sum greater than the amount of one hundred
fifty thousand dollars or the amount necessary to cover
incurred but unpaid reimbursement or indemnity benefits as
reported in the last annual statement filed with the insurance
commissioner, and adjusted to reflect known or anticipated
increases or decreases during the ensuing year, plus an
amount of unearned prepayments applicable to reimbursement or indemnity benefits satisfactory to the insurance commissioner, whichever amount is greater. Such cash or security deposit shall be held in trust by the insurance commissioner and shall be for the benefit of the persons who have
previously paid, or on whose behalf prepayment has been
made, for such health care services. [1990 c 120 § 7; 1986 c
223 § 3; 1981 c 339 § 22; 1969 c 115 § 2; 1961 c 197 § 3;
1947 c 268 § 3; Rem. Supp. 1947 § 6131-12.]
48.44.033
48.44.033 Financial failure—Supervision of commissioner—Priority of distribution of assets. (1) Any rehabilitation, liquidation, or conservation of a health care service
contractor shall be deemed to be the rehabilitation, liquidation, or conservation of an insurance company and shall be
conducted under the supervision of the commissioner pursuant to the law governing the rehabilitation, liquidation, or
conservation of insurance companies. The commissioner
may apply for an order directing the commissioner to rehabilitate, liquidate, or conserve a health care service contractor
upon any one or more grounds set out in RCW 48.31.030,
48.31.050, and 48.31.080.
(2) For purpose of determining the priority of distribution of general assets, claims of enrolled participants and
enrolled participants' beneficiaries shall have the same prior[Title 48 RCW—page 287]
48.44.035
Title 48 RCW: Insurance
ity as established by RCW 48.31.280 for policyholders and
beneficiaries of insureds of insurance companies. If an
enrolled participant is liable to any provider for services provided pursuant to and covered by the health care plan, that
liability shall have the status of an enrolled participant claim
for distribution of general assets.
(3) Any provider who is obligated by statute or agreement to hold enrolled participants harmless from liability for
services provided pursuant to and covered by a health care
plan shall have a priority of distribution of the general assets
immediately following that of enrolled participants and
enrolled participants' beneficiaries as described herein, and
immediately preceding the priority of distribution described
in chapter 48.31 RCW. [1990 c 120 § 2.]
48.44.035 Limited health care service—Uncovered
expenditures—Minimum net worth requirements. (1)
For purposes of this section only, "limited health care service" means dental care services, vision care services, mental
health services, chemical dependency services, pharmaceutical services, podiatric care services, and such other services
as may be determined by the commissioner to be limited
health services, but does not include hospital, medical, surgical, emergency, or out-of-area services except as those services are provided incidentally to the limited health services
set forth in this subsection.
(2) For purposes of this section only, a "limited health
care service contractor" means a health care service contractor that offers one and only one limited health care service.
(3) Except as provided in subsection (4) of this section,
every limited health care service contractor must have and
maintain a minimum net worth of three hundred thousand
dollars.
(4) A limited health care service contractor registered
before July 27, 1997, that, on July 27, 1997, has a minimum
net worth equal to or greater than that required by subsection
(3) of this section must continue to have and maintain the
minimum net worth required by subsection (3) of this section.
A limited health care service contractor registered before July
27, 1997, that, on July 27, 1997, does not have the minimum
net worth required by subsection (3) of this section must have
and maintain a minimum net worth of:
(a) Thirty-five percent of the amount required by subsection (3) of this section by December 31, 1997;
(b) Seventy percent of the amount required by subsection
(3) of this section by December 31, 1998; and
(c) One hundred percent of the amount required by subsection (3) of this section by December 31, 1999.
(5) For all limited health care service contractors that
have had a certificate of registration for less than three years,
their uncovered expenditures shall be either insured or guaranteed by a foreign or domestic carrier admitted in the state
of Washington or by another carrier acceptable to the commissioner. All such contractors shall also deposit with the
commissioner one-half of one percent of their projected premium for the next year in cash, approved surety bond, securities, or other form acceptable to the commissioner.
(6) For all limited health care service contractors that
have had a certificate of registration for three years or more,
their uncovered expenditures shall be assured by depositing
with the insurance commissioner twenty-five percent of their
48.44.035
[Title 48 RCW—page 288]
last year's uncovered expenditures as reported to the commissioner and adjusted to reflect any anticipated increases or
decreases during the ensuing year plus an amount for
unearned prepayments; in cash, approved surety bond, securities, or other form acceptable to the commissioner. Compliance with subsection (5) of this section shall also constitute
compliance with this requirement.
(7) Limited health service contractors need not comply
with RCW 48.44.030 or 48.44.037. [1997 c 212 § 1; 1990 c
120 § 3.]
48.44.037 Minimum net worth—Requirement to
maintain—Determination of amount. (1) Except as provided in subsection (2) of this section, every health care service contractor must have and maintain a minimum net worth
equal to the greater of:
(a) Three million dollars; or
(b) Two percent of the annual premium earned, as
reported on the most recent annual financial statement filed
with the commissioner, on the first one hundred fifty million
dollars of premium and one percent of the annual premium on
the premium in excess of one hundred fifty million dollars.
(2) A health care service contractor registered before
July 27, 1997, that, on July 27, 1997, has a minimum net
worth equal to or greater than that required by subsection (1)
of this section must continue to have and maintain the minimum net worth required by subsection (1) of this section. A
health care service contractor registered before July 27, 1997,
that, on July 27, 1997, does not have the minimum net worth
required by subsection (1) of this section must have and
maintain a minimum net worth of:
(a) The amount required immediately prior to July 27,
1997, until December 31, 1997;
(b) Fifty percent of the amount required by subsection
(1) of this section by December 31, 1997;
(c) Seventy-five percent of the amount required by subsection (1) of this section by December 31, 1998; and
(d) One hundred percent of the amount required by subsection (1) of this section by December 31, 1999.
(3)(a) In determining net worth, no debt shall be considered fully subordinated unless the subordination is in a form
acceptable to the commissioner. An interest obligation relating to the repayment of a subordinated debt must be similarly
subordinated.
(b) The interest expenses relating to the repayment of a
fully subordinated debt shall not be considered uncovered
expenditures.
(c) A subordinated debt incurred by a note meeting the
requirement of this section, and otherwise acceptable to the
commissioner, shall not be considered a liability and shall be
recorded as equity.
(4) Every health care service contractor shall, when
determining liabilities, include an amount estimated in the
aggregate to provide for any unearned premium and for the
payment of all claims for health care expenditures which
have been incurred, whether reported or unreported, which
are unpaid and for which the organization is or may be liable,
and to provide for the expense of adjustment or settlement of
the claims.
Liabilities shall be computed in accordance with regulations adopted by the commissioner upon reasonable consider48.44.037
(2004 Ed.)
Health Care Services
ation of the ascertained experience and character of the health
care service contractor.
(5) All income from reserves on deposit with the commissioner shall belong to the depositing health care service
contractor and shall be paid to it as it becomes available.
(6) Any funded reserve required by this chapter shall be
considered an asset of the health care service contractor in
determining the organization's net worth.
(7) A health care service contractor that has made a securities deposit with the commissioner may, at its option, withdraw the securities deposit or any part thereof after first having deposited or provided in lieu thereof an approved surety
bond, a deposit of cash or securities, or any combination of
these or other deposits of equal amount and value to that
withdrawn. Any securities and surety bond shall be subject to
approval by the commissioner before being substituted.
[1997 c 212 § 2; 1990 c 120 § 4.]
48.44.039
48.44.039 Minimum net worth—Domestic or foreign
health care service contractor. (1) For purposes of this section:
(a) "Domestic health care service contractor" means a
health care service contractor formed under the laws of this
state; and
(b) "Foreign health care service contractor" means a
health care service contractor formed under the laws of the
United States, of a state or territory of the United States other
than this state, or of the District of Columbia.
(2) If the minimum net worth of a domestic health care
service contractor falls below the minimum net worth
required by this chapter, the commissioner shall at once
ascertain the amount of the deficiency and serve notice upon
the domestic health care service contractor to cure the deficiency within ninety days after that service of notice.
(3) If the deficiency is not cured, and proof thereof filed
with the commissioner within the ninety-day period, the
domestic health care service contractor shall be declared
insolvent and shall be proceeded against as authorized by this
code, or the commissioner shall, consistent with chapters
48.04 and 34.05 RCW, suspend or revoke the registration of
the domestic health care service contractor as being hazardous to its subscribers and the people in this state.
(4) If the deficiency is not cured the domestic health care
service contractor shall not issue or deliver any individual or
group contract after the expiration of the ninety-day period.
(5) If the minimum net worth of a foreign health care service contractor falls below the minimum net worth required
by this chapter, the commissioner shall, consistent with chapters 48.04 and 34.05 RCW, suspend or revoke the foreign
health care service contractor's registration as being hazardous to its subscribers or the people in this state. [1997 c 212
§ 3.]
48.44.040
48.44.040 Registration with commissioner—Fee.
Every health care service contractor who or which enters into
agreements which require prepayment for health care services shall register with the insurance commissioner on forms
to be prescribed and provided by him. Such registrants shall
state their name, address, type of organization, area of operation, type or types of health care services provided, and such
(2004 Ed.)
48.44.057
other information as may reasonably be required by the insurance commissioner and shall file with such registration a
copy of all contracts being offered and a schedule of all rates
charged. No registrant shall change any rates, modify any
contract, or offer any new contract, until he has filed a copy
of the changed rate schedule, modified contract, or new contract with the insurance commissioner. The insurance commissioner shall charge a fee of ten dollars for the filing of
each original registration statement and may require each
registrant to file a current reregistration statement annually
thereafter. [1947 c 268 § 4; Rem. Supp. 1947 § 6131-13.]
48.44.050
48.44.050 Rules and regulations. The insurance commissioner shall make reasonable regulations in aid of the
administration of this chapter which may include, but shall
not be limited to regulations concerning the maintenance of
adequate insurance, bonds, or cash deposits, information
required of registrants, and methods of expediting speedy and
fair payments to claimants. [1947 c 268 § 5; Rem. Supp.
1947 § 6131-14.]
48.44.055
48.44.055 Plan for handling insolvency—Commissioner's review. Each health care service contractor shall
have a plan for handling insolvency that allows for continuation of benefits for the duration of the contract period for
which premiums have been paid and continuation of benefits
to members who are confined on the date of insolvency in an
inpatient facility until their discharge or expiration of benefits. The commissioner shall approve such a plan if it
includes:
(1) Insurance to cover the expenses to be paid for continued benefits after insolvency;
(2) Provisions in provider contracts that obligate the provider to provide services for the duration of the period after
the health care service contractor's insolvency for which premium payment has been made and until the enrolled participants are discharged from inpatient facilities;
(3) Use of insolvency reserves established under RCW
48.44.030;
(4) Acceptable letters of credit or approved surety bonds;
or
(5) Any other arrangements the commissioner and the
organization mutually agree are appropriate to assure that the
benefits are continued. [1990 c 120 § 11.]
48.44.057
48.44.057 Insolvency—Commissioner's duties—Participants' options—Allocation of coverage. (1)(a) In the
event of insolvency of a health services contractor or health
maintenance organization and upon order of the commissioner, all other carriers then having active enrolled participants under a group plan with the affected agreement holder
that participated in the enrollment process with the insolvent
health services contractor or health maintenance organization
at a group's last regular enrollment period shall offer the eligible enrolled participants of the insolvent health services
contractor or health maintenance organization the opportunity to enroll in an existing group plan without medical
underwriting during a thirty-day open enrollment period,
commencing on the date of the insolvency. Eligible enrolled
participants shall not be subject to preexisting condition lim[Title 48 RCW—page 289]
48.44.060
Title 48 RCW: Insurance
itations except to the extent that a waiting period for a preexisting condition has not been satisfied under the insolvent
carrier's group plan. An open enrollment shall not be required
where the agreement holder participates in a self-insured,
self-funded, or other health plan exempt from commissioner
rule, unless the plan administrator and agreement holder voluntarily agree to offer a simultaneous open enrollment and
extend coverage under the same enrollment terms and conditions as are applicable to carriers under this title and rules
adopted under this title. If an exempt plan was offered during
the last regular open enrollment period, then the carrier may
offer the agreement holder the same coverage as any selfinsured plan or plans offered by the agreement holder without
regard to coverage, benefit, or provider requirements mandated by this title for the duration of the current agreement
period.
(b) For purposes of this subsection only, the term "carrier" means a health maintenance organization or a health
care services contractor. In the event of insolvency of a carrier and if no other carrier has active enrolled participants
under a group plan with the affected agreement holder, or if
the commissioner determines that the other carriers lack sufficient health care delivery resources to assure that health services will be available or accessible to all of the group enrollees of the insolvent carrier, then the commissioner shall allocate equitably the insolvent carrier's group agreements for
these groups among all carriers that operate within a portion
of the insolvent carrier's area, taking into consideration the
health care delivery resources of each carrier. Each carrier to
which a group or groups are allocated shall offer the agreement holder, without medical underwriting, the carrier's
existing coverage that is most similar to each group's coverage with the insolvent carrier at rates determined in accordance with the successor carrier's existing rating methodology. The eligible enrolled participants shall not be subject to
preexisting condition limitations except to the extent that a
waiting period for a preexisting condition has not been satisfied under the insolvent carrier's group plan. No offering by a
carrier shall be required where the agreement holder participates in a self-insured, self-funded, or other health plan
exempt from commissioner rule. The carrier may offer the
agreement holder the same coverage as any self-insured plan
or plans offered by the agreement holder without regard to
coverage, benefit, or provider requirements mandated by this
title for the duration of the current agreement period.
(2) The commissioner shall also allocate equitably the
insolvent carrier's nongroup enrolled participants who are
unable to obtain coverage among all carriers that operate
within a portion of the insolvent carrier's service area, taking
into consideration the health care delivery resources of the
carrier. Each carrier to which nongroup enrolled participants
are allocated shall offer the nongroup enrolled participants
the carrier's existing comprehensive conversion plan, without
additional medical underwriting, at rates determined in
accordance with the successor carrier's existing rating methodology. The eligible enrolled participants shall not be subject to preexisting condition limitations except to the extent
that a waiting period for a preexisting condition has not been
satisfied under the insolvent carrier's plan.
(3) Any agreements covering participants allocated pursuant to subsections (1)(b) and (2) of this section to carriers
[Title 48 RCW—page 290]
pursuant to this section may be rerated after ninety days of
coverage.
(4) A limited health care service contractor shall not be
required to offer services other than its one limited health
care service to any enrolled participant of an insolvent carrier. [1990 c 120 § 8.]
48.44.060
48.44.060 Penalty. Except as otherwise provided in this
chapter, any person who violates any of the provisions of this
chapter is guilty of a gross misdemeanor. [2003 c 250 § 9;
1947 c 268 § 6; Rem. Supp. 1947 § 6131-15.]
Severability—2003 c 250: See note following RCW 48.01.080.
48.44.070
48.44.070 Contracts to be filed with commissioner.
(1) Forms of contracts between health care service contractors and participating providers shall be filed with the insurance commissioner prior to use.
(2) Any contract form not affirmatively disapproved
within fifteen days of filing shall be deemed approved, except
that the commissioner may extend the approval period an
additional fifteen days upon giving notice before the expiration of the initial fifteen-day period. The commissioner may
approve such a contract form for immediate use at any time.
Approval may be subsequently withdrawn for cause.
(3) Subject to the right of the health care service contractor to demand and receive a hearing under chapters 48.04 and
34.05 RCW, the commissioner may disapprove such a contract form if it is in any respect in violation of this chapter or
if it fails to conform to minimum provisions or standards
required by the commissioner by rule under chapter 34.05
RCW. [1990 c 120 § 9; 1965 c 87 § 2; 1961 c 197 § 4.]
48.44.080
48.44.080 Master lists of contractor's participating
providers—Filing with commissioner—Notice of termination or participation. Every health care service contractor shall file with its annual statement with the insurance
commissioner a master list of the participating providers with
whom or with which such health care service contractor has
executed contracts of participation, certifying that each such
participating provider has executed such contract of participation. The health care service contractor shall on the first
day of each month notify the insurance commissioner in writing in case of the termination of any such contract, and of any
participating provider who has entered into a participating
contract during the preceding month. [1990 c 120 § 10; 1986
c 223 § 4; 1965 c 87 § 3; 1961 c 197 § 5.]
48.44.090
48.44.090 Refusal to register corporate, etc., contractor if name confusing with existing contractor or insurance company. The insurance commissioner shall refuse to
accept the registration of any corporation, cooperative group,
or association seeking to act as a health care service contractor if, in his discretion, the insurance commissioner deems
that the name of the corporation, cooperative group, or association would be confused with the name of an existing registered health care service contractor or authorized insurance
company. [1961 c 197 § 6.]
48.44.095
48.44.095 Annual financial statement—Filings—
Contents—Fee—Penalty for failure to file. (1) Every
(2004 Ed.)
Health Care Services
health care service contractor shall annually, before the first
day of March, file with the commissioner a statement verified
by at least two of the principal officers of the health care service contractor showing its financial condition as of the last
day of the preceding calendar year. The statement shall be in
such form as is furnished or prescribed by the commissioner.
The commissioner may for good reason allow a reasonable
extension of the time within which such annual statement
shall be filed.
(2) In addition to the requirements of subsection (1) of
this section, every health care service contractor that is registered in this state shall annually, on or before March 1st of
each year, file with the national association of insurance commissioners a copy of its annual statement, along with those
additional schedules as prescribed by the commissioner for
the preceding year. The information filed with the national
association of insurance commissioners shall be in the same
format and scope as that required by the commissioner and
shall include the signed jurate page and the actuarial certification. Any amendments and addendums to the annual statement filing subsequently filed with the commissioner shall
also be filed with the national association of insurance commissioners.
(3) Coincident with the filing of its annual statement and
other schedules, each health care service contractor shall pay
a reasonable fee directly to the national association of insurance commissioners in an amount approved by the commissioner to cover the costs associated with the analysis of the
annual statement.
(4) Foreign health care service contractors that are domiciled in a state that has a law substantially similar to subsection (2) of this section are considered to be in compliance
with this section.
(5) In the absence of actual malice, members of the
national association of insurance commissioners, their duly
authorized committees, subcommittees, and task forces, their
delegates, national association of insurance commissioners
employees, and all other persons charged with the responsibility of collecting, reviewing, analyzing, and dissimilating
the information developed from the filing of the annual statement shall be acting as agents of the commissioner under the
authority of this section and shall not be subject to civil liability for libel, slander, or any other cause of action by virtue of
their collection, review, analysis, or dissimilation of the data
and information collected for the filings required under this
section.
(6) The commissioner may suspend or revoke the certificate of registration of any health care service contractor failing to file its annual statement or pay the fees when due or
during any extension of time therefor which the commissioner, for good cause, may grant. [1997 c 212 § 4; 1993 c
492 § 295; 1983 c 202 § 3; 1969 c 115 § 5.]
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
Short title—Severability—Savings—Captions not law—Reservation of legislative power—Effective dates—1993 c 492: See RCW
43.72.910 through 43.72.915.
48.44.100
48.44.100 Filing inaccurate financial statement prohibited. No person shall knowingly file with any public official or knowingly make, publish, or disseminate any financial
statement of a health care service contractor which does not
(2004 Ed.)
48.44.145
accurately state the health care service contractor's financial
condition. [1961 c 197 § 7.]
48.44.110
48.44.110 False representation, advertising. No person shall knowingly make, publish, or disseminate any false,
deceptive, or misleading representation or advertising in the
conduct of the business of a health care service contractor, or
relative to the business of a health care service contractor or
to any person engaged therein. [1961 c 197 § 8.]
48.44.120
48.44.120 Misrepresentations of contract terms, benefits, etc. No person shall knowingly make, issue, or circulate, or cause to be made, issued, or circulated, a misrepresentation of the terms of any contract, or the benefits or advantages promised thereby, or use the name or title of any
contract or class of contract misrepresenting the nature
thereof. [1961 c 197 § 9.]
48.44.130
48.44.130 Future dividends or refunds—When permissible. No health care service contractor nor any individual acting on behalf thereof shall guarantee or agree to the
payment of future dividends or future refunds of unused
charges or savings in any specific or approximate amounts or
percentages in respect to any contract being offered to the
public, except in a group contract containing an experience
refund provision. [1961 c 197 § 10.]
48.44.140
48.44.140 Misleading comparisons to terminate or
retain contract. No health care service contractor nor any
person representing a health care service contractor shall by
misrepresentation or misleading comparisons induce or
attempt to induce any member of any health care service contractor to terminate or retain a contract or membership. [1961
c 197 § 11.]
48.44.145
48.44.145 Examination of contractors—Duties of
contractor, powers of commissioner—Independent audit
reports. (1) The commissioner may make an examination of
the operations of any health care service contractor as often
as he deems necessary in order to carry out the purposes of
this chapter.
(2) Every health care service contractor shall submit its
books and records relating to its operation for financial condition and market conduct examinations and in every way
facilitate them. For the purpose of examinations, the commissioner may issue subpoenas, administer oaths, and examine
the officers and principals of the health care service contractor.
(3) The commissioner may elect to accept and rely on
audit reports made by an independent certified public
accountant for the health care service contractor in the course
of that part of the commissioner's examination covering the
same general subject matter as the audit. The commissioner
may incorporate the audit report in his report of the examination.
(4) Whenever any health care service contractor applies
for initial admission, the commissioner may make, or cause
to be made, an examination of the applicant's business and
affairs. Whenever such an examination is made, all of the
provisions of chapter 48.03 RCW not inconsistent with this
[Title 48 RCW—page 291]
48.44.150
Title 48 RCW: Insurance
chapter shall be applicable. In lieu of making an examination
himself the commissioner may, in the case of a foreign health
care service contractor, accept an examination report of the
applicant by the regulatory official in its state of domicile.
[1986 c 296 § 8; 1983 c 63 § 1; 1969 c 115 § 12.]
Severability—Effective date—1986 c 296: See notes following RCW
48.14.020.
48.44.150 Certificate of registration not an endorsement—Display in solicitation prohibited. The granting of
a certificate of registration to a health care service contractor
is permissive only, and shall not constitute an endorsement
by the insurance commissioner of any person or thing related
to the health care service contractor, and no person shall
advertise or display a certificate of registration for use as an
inducement in any solicitation. [1961 c 197 § 12.]
48.44.150
48.44.160 Revocation, suspension, refusal of registration—Hearing—Cease and desist orders, injunctive
action—Grounds. The insurance commissioner may, subject to a hearing if one is demanded pursuant to chapters
48.04 and 34.05 RCW, revoke, suspend, or refuse to accept
or renew registration from any health care service contractor,
or he may issue a cease and desist order, or bring an action in
any court of competent jurisdiction to enjoin a health care
service contractor from doing further business in this state, if
such health care service contractor:
(1) Fails to comply with any provision of chapter 48.44
RCW or any proper order or regulation of the commissioner.
(2) Is found by the commissioner to be in such financial
condition that its further transaction of business in this state
would jeopardize the payment of claims and refunds to subscribers.
(3) Has refused to remove or discharge a director or
officer who has been convicted of any crime involving fraud,
dishonesty, or like moral turpitude, after written request by
the commissioner for such removal, and expiration of a reasonable time therefor as specified in such request.
(4) Usually compels claimants under contracts either to
accept less than the amount due them or to bring suit against
it to secure full payment of the amount due.
(5) Is affiliated with and under the same general management, or interlocking directorate, or ownership as another
health care contractor which operates in this state without
having registered therefor, except as is permitted by this
chapter.
(6) Refuses to be examined, or if its directors, officers,
employees or representatives refuse to submit to examination
or to produce its accounts, records, and files for examination
by the commissioner when required, or refuse to perform any
legal obligation relative to the examination.
(7) Fails to pay any final judgment rendered against it in
this state upon any contract, bond, recognizance, or undertaking issued or guaranteed by it, within thirty days after the
judgment became final or within thirty days after time for
taking an appeal has expired, or within thirty days after dismissal of an appeal before final determination, whichever
date is the later.
(8) Is found by the commissioner, after investigation or
upon receipt of reliable information, to be managed by persons, whether by its directors, officers, or by any other
48.44.160
[Title 48 RCW—page 292]
means, who are incompetent or untrustworthy or so lacking
in health care contracting or related managerial experience as
to make the operation hazardous to the subscribing public; or
that there is good reason to believe it is affiliated directly or
indirectly through ownership, control, or other business relations, with any person or persons whose business operations
are or have been marked, to the detriment of policyholders or
stockholders, or investors or creditors or subscribers or of the
public, by bad faith or by manipulation of assets, or of
accounts, or of reinsurance. [1988 c 248 § 19; 1973 1st ex.s.
c 65 § 2; 1969 c 115 § 3; 1961 c 197 § 13.]
48.44.164
48.44.164 Notice of suspension, revocation, or refusal
to be given contractor—Authority of agents. Upon the
suspension, revocation or refusal of a health care service contractor's registration, the commissioner shall give notice
thereof to such contractor and shall likewise suspend, revoke
or refuse the authority of its agents to represent it in this state
and give notice thereof to the agents. [1969 c 115 § 10.]
48.44.166
48.44.166 Fine in addition to or in lieu of suspension,
revocation, or refusal. After hearing or upon stipulation by
the registrant and in addition to or in lieu of the suspension,
revocation or refusal to renew any registration of a health
care service contractor the commissioner may levy a fine
against the party involved for each offense in an amount not
less than fifty dollars and not more than ten thousand dollars.
The order levying such fine shall specify the period within
which the fine shall be fully paid and which period shall not
be less than fifteen nor more than thirty days from the date of
such order. Upon failure to pay any such fine when due the
commissioner shall revoke the registration of the registrant, if
not already revoked, and the fine shall be recovered in a civil
action brought in behalf of the commissioner by the attorney
general. Any fine so collected shall be paid by the commissioner to the state treasurer for the account of the general
fund. [1983 c 202 § 4; 1969 c 115 § 11.]
48.44.170
48.44.170 Hearings and appeals. For the purposes of
this chapter, the insurance commissioner shall be subject to
and may avail himself of the provisions of chapter 48.04
RCW, which relate to hearings and appeals. [1961 c 197 §
14.]
48.44.180
48.44.180 Enforcement. For the purposes of this chapter, the insurance commissioner shall have the same powers
and duties of enforcement as are provided in RCW
48.02.080. [1961 c 197 § 15.]
48.44.200
48.44.200 Individual health care service plan contracts—Coverage of dependent child not to terminate
because of developmental disability or physical handicap.
An individual health care service plan contract, delivered or
issued for delivery in this state more than one hundred twenty
days after August 11, 1969, which provides that coverage of
a dependent child shall terminate upon attainment of the limiting age for dependent children specified in the contract shall
also provide in substance that attainment of such limiting age
shall not operate to terminate the coverage of such child
while the child is and continues to be both (1) incapable of
(2004 Ed.)
Health Care Services
self-sustaining employment by reason of developmental disability or physical handicap and (2) chiefly dependent upon
the subscriber for support and maintenance, provided proof
of such incapacity and dependency is furnished to the health
care service plan corporation by the subscriber within thirtyone days of the child's attainment of the limiting age and subsequently as may be required by the corporation but not more
frequently than annually after the two year period following
the child's attainment of the limiting age. [1977 ex.s. c 80 §
33; 1969 ex.s. c 128 § 1.]
Purpose—Intent—Severability—1977 ex.s. c 80: See notes following RCW 4.16.190.
48.44.240
on account of race, religion, national origin, or the presence
of any sensory, mental, or physical handicap. Nothing in this
section shall be construed as limiting a health care service
contractor's authority to deny or otherwise limit coverage to a
person when the person because of a medical condition does
not meet the essential eligibility requirements established by
the health care service contractor for purposes of determining
coverage for any person.
No health care service contractor shall refuse to provide
reimbursement or indemnity to any person for covered health
care services for reasons that the health care services were
provided by a holder of a license under chapter 18.22 RCW.
[1983 c 154 § 4; 1979 c 127 § 1; 1969 c 115 § 4.]
48.44.210
48.44.210 Group health care service plan contracts—
Coverage of dependent child not to terminate because of
developmental disability or physical handicap. A group
health care service plan contract, delivered or issued for
delivery in this state more than one hundred twenty days after
August 11, 1969, which provides that coverage of a dependent child of an employee or other member of the covered
group shall terminate upon attainment of the limiting age for
dependent children specified in the contract shall also provide in substance that attainment of such limiting age shall
not operate to terminate the coverage of such child while the
child is and continues to be both (1) incapable of self-sustaining employment by reason of developmental disability or
physical handicap and (2) chiefly dependent upon the
employee or member for support and maintenance, provided
proof of such incapacity and dependency is furnished to the
health care service plan corporation by the employee or member within thirty-one days of the child's attainment of the limiting age and subsequently as may be required by the corporation, but not more frequently than annually after the two
year period following the child's attainment of the limiting
age. [1977 ex.s. c 80 § 34; 1969 ex.s. c 128 § 2.]
Purpose—Intent—Severability—1977 ex.s. c 80: See notes following RCW 4.16.190.
48.44.212 Coverage of dependent children to include
newborn infants and congenital anomalies from moment
of birth—Notification period. (1) Any health care service
plan contract under this chapter delivered or issued for delivery in this state more than one hundred twenty days after February 16, 1974, which provides coverage for dependent children of the insured or covered group member, shall provide
coverage for newborn infants of the insured or covered group
member from and after the moment of birth. Coverage provided in accord with this section shall include, but not be limited to, coverage for congenital anomalies of such infant children from the moment of birth.
(2) If payment of an additional premium is required to
provide coverage for a child, the contract may require that
notification of birth of a newly born child and payment of the
required premium must be furnished to the contractor. The
notification period shall be no less than sixty days from the
date of birth. This subsection applies to policies issued or
renewed on or after January 1, 1984. [1984 c 4 § 1; 1983 c
202 § 5; 1974 ex.s. c 139 § 3.]
48.44.212
Severability—1983 c 154: See note following RCW 48.44.299.
48.44.225
48.44.225 *Podiatrists not excluded. A health care
service contractor which provides foot care services shall not
exclude any individual doctor who is licensed to perform
podiatric health care services from being a participant for reason that the doctor is licensed under chapter 18.22 RCW.
Rejections of requests by doctors to be participants must be in
writing stating the cause for the rejection. [1983 c 154 § 5.]
*Reviser's note: The term "podiatrists" was changed to "podiatric physicians and surgeons" by 1990 c 147.
Severability—1983 c 154: See note following RCW 48.44.299.
48.44.230
48.44.230 Individual health service plan contract—
Return within ten days of delivery—Refunds—Void from
beginning—Notice required. Every subscriber of an individual health care service plan contract issued after September 1, 1973, may return the contract to the health care service
contractor or the agent through whom it was purchased
within ten days of its delivery to the subscriber if, after examination of the contract, he is not satisfied with it for any reason, and the health care service contractor shall refund
promptly any fee paid for such contract. Upon such return of
the contract it shall be void from the beginning and the parties
shall be in the same position as if no policy had been issued.
Notice of the substance of this section shall be printed on the
face of each such contract or be attached thereto. An additional ten percent penalty shall be added to any premium
refund due which is not paid within thirty days of return of
the policy to the insurer or agent. [1983 1st ex.s. c 32 § 11;
1973 1st ex.s. c 65 § 4.]
48.44.240
48.44.240 Chemical dependency benefits—Provisions of group contracts delivered or renewed after January 1, 1988. Each group contract for health care services
which is delivered or issued for delivery or renewed, on or
after January 1, 1988, shall contain provisions providing benefits for the treatment of chemical dependency rendered to
covered persons by a provider which is an "approved treatment facility or program" under *RCW 70.96A.020(3).
[1990 1st ex.s. c 3 § 12; 1987 c 458 § 16; 1975 1st ex.s. c 266
§ 14; 1974 ex.s. c 119 § 4.]
*Reviser's note: RCW 70.96A.020(3) defines "approved treatment
program."
Effective date—Severability—1987 c 458: See notes following RCW
48.21.160.
48.44.220
48.44.220 Discrimination prohibited. No health care
service contractor shall deny coverage to any person solely
(2004 Ed.)
Severability—1975 1st ex.s. c 266: See note following RCW
48.01.010.
[Title 48 RCW—page 293]
48.44.241
Title 48 RCW: Insurance
Legislative declaration—1974 ex.s. c 119: See RCW 48.21.160.
Chemical dependency benefits, rules: RCW 48.21.197.
48.44.241
48.44.241 Chemical dependency benefits—RCW
48.21.160 through 48.21.190, 48.44.240 inapplicable,
when. See RCW 48.21.190.
48.44.245
48.44.245 "Chemical dependency" defined. For the
purposes of RCW 48.44.240, "chemical dependency" means
an illness characterized by a physiological or psychological
dependency, or both, on a controlled substance regulated
under chapter 69.50 RCW and/or alcoholic beverages. It is
further characterized by a frequent or intense pattern of
pathological use to the extent the user exhibits a loss of selfcontrol over the amount and circumstances of use; develops
symptoms of tolerance or physiological and/or psychological
withdrawal if use of the controlled substance or alcoholic
beverage is reduced or discontinued; and the user's health is
substantially impaired or endangered or his or her social or
economic function is substantially disrupted. [1987 c 458 §
17.]
Effective date—Severability—1987 c 458: See notes following RCW
48.21.160.
48.44.250
48.44.250 Payment of premium by employee in event
of suspension of compensation due to labor dispute. Any
employee whose compensation includes a health care services contract providing health care services expenses, the
premiums for which are paid in full or in part by an employer
including the state of Washington, its political subdivisions,
or municipal corporations, or paid by payroll deduction, may
pay the premiums as they become due directly to the contract
holder whenever the employee's compensation is suspended
or terminated directly or indirectly as the result of a strike,
lockout, or other labor dispute, for a period not exceeding six
months and at the rate and coverages as the health care services contract provides. During that period of time such contract may not be altered or changed. Nothing in this section
shall be deemed to impair the right of the health care service
contractor to make normal decreases or increases of the premium rate upon expiration and renewal of the contract, in
accordance with the provisions of the contract. Thereafter, if
such health care services coverage is no longer available,
then the employee shall be given the opportunity to purchase
an individual health care services contract at a rate consistent
with rates filed by the health care service contractor with the
commissioner. When the employee's compensation is so suspended or terminated, the employee shall be notified immediately by the contract holder in writing, by mail addressed to
the address last of record with the contract holder, that the
employee may pay the premiums to the contract holder as
they become due as provided in this section.
Payment of the premiums must be made when due or the
coverage may be terminated by the health care service contractor.
The provisions of any health care services contract contrary to provisions of this section are void and unenforceable
after May 29, 1975. [1982 c 149 § 1; 1975 1st ex.s. c 117 §
3.]
Severability—1975 1st ex.s. c 117: See note following RCW
48.21.075.
[Title 48 RCW—page 294]
48.44.260
48.44.260 Notice of reason for cancellation, denial, or
refusal to renew contract. Every authorized health care service contractor, upon canceling, denying, or refusing to
renew any individual health care service contract, shall, upon
written request, directly notify in writing the applicant or subscriber, as the case may be, of the reasons for the action by
the health care service contractor. Any benefits, terms, rates,
or conditions of such a contract which are restricted,
excluded, modified, increased, or reduced shall, upon written
request, be set forth in writing and supplied to the subscriber.
The written communications required by this section shall be
phrased in simple language which is readily understandable
to a person of average intelligence, education, and reading
ability. [1993 c 492 § 290; 1979 c 133 § 3.]
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
Short title—Severability—Savings—Captions not law—Reservation of legislative power—Effective dates—1993 c 492: See RCW
43.72.910 through 43.72.915.
48.44.270
48.44.270 Immunity from libel or slander. With
respect to health care service contracts as defined in RCW
48.44.260, there shall be no liability on the part of, and no
cause of action of any nature shall arise against, the insurance
commissioner, the commissioner's agents, or members of the
commissioner's staff, or against any health care service contractor, its authorized representative, its agents, its employees, furnishing to the health care service contractor information as to reasons for cancellation or refusal to issue or renew,
for libel or slander on the basis of any statement made by any
of them in any written notice of cancellation or refusal to
issue or renew, or in any other communications, oral or written, specifying the reasons for cancellation or refusal to issue
or renew or the providing of information pertaining thereto,
or for statements made or evidence submitted in any hearing
conducted in connection therewith. [1979 c 133 § 4.]
48.44.290
48.44.290 Registered nurses or advanced registered
nurses. Notwithstanding any provision of this chapter, for
any health care service contract thereunder which is entered
into or renewed after July 26, 1981, benefits shall not be
denied under such contract for any health care service performed by a holder of a license for registered nursing practice
or advanced registered nursing practice issued pursuant to
chapter 18.79 RCW if (1) the service performed was within
the lawful scope of such person's license, and (2) such contract would have provided benefits if such service had been
performed by a holder of a license issued pursuant to chapter
18.71 RCW: PROVIDED, HOWEVER, That no provision
of chapter 18.71 RCW shall be asserted to deny benefits
under this section.
The provisions of this section are intended to be remedial
and procedural to the extent that they do not impair the obligation of any existing contract. [1994 sp.s. c 9 § 733; 1986 c
223 § 6; 1981 c 175 § 1.]
Severability—Headings and captions not law—Effective date—
1994 sp.s. c 9: See RCW 18.79.900 through 18.79.902.
48.44.299
48.44.299 Legislative finding. The legislature finds
and declares that there is a paramount concern that the right
of the people to obtain access to health care in all its facets is
being impaired by prepaid agreements which provide bene(2004 Ed.)
Health Care Services
fits, reimbursement, or indemnity by health care service contractors, whether for profit or for nonprofit, which do not provide parity of reimbursement among licensed health care providers performing the same health care services. It is further
the intent of the legislature not to mandate the providing of
any health care benefit, but rather to require parity of reimbursement for the same health care services performed by all
licensees who perform such services within the scope of their
respective licenses thereby assuring the people of the state
access to health care services of their choice. [1983 c 154 §
1.]
Severability—1983 c 154: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1983 c 154 § 6.]
48.44.300
48.44.300 *Podiatry—Benefits not to be denied. Benefits shall not be denied under a contract for any health care
service performed by a holder of a license issued under chapter 18.22 RCW if (1) the service performed was within the
lawful scope of the person's license, and (2) the contract
would have provided benefits if the service had been performed by a holder of a license issued under chapter 18.71
RCW. There shall not be imposed upon one class of doctors
providing health care services as defined by this chapter any
requirement that is not imposed upon all other doctors providing the same or similar health care services within the
scope of their license.
The provisions of this section are intended to be procedural to the extent that they do not impair the obligation of
any existing contract. [1986 c 223 § 7; 1983 c 154 § 2.]
*Reviser's note: The term "podiatry" was changed to "podiatric medicine and surgery" by 1990 c 147.
Severability—1983 c 154: See note following RCW 48.44.299.
48.44.305
48.44.305 When injury caused by intoxication or use
of narcotics. A health care service contractor may not deny
coverage for the treatment of an injury solely because the
injury was sustained as a consequence of the enrolled participant's being intoxicated or under the influence of a narcotic.
[2004 c 112 § 4.]
Finding—Application—2004 c 112: See notes following RCW
48.20.385.
48.44.309
48.44.309 Legislative finding. The legislature finds
and declares that there is a paramount concern that the right
of the people to obtain access to health care in all its facets is
being impaired. The legislature further finds that there is a
heavy reliance by the public upon prepaid health care service
agreements and insurance, whether profit or nonprofit, as the
only effective manner in which the large majority of the people can obtain access to quality health care. Further, the legislature finds that health care service agreements may be anticompetitive because of the exclusion of other licensed forms
of health care and that because of the high costs of health
care, there is a need for competition to reduce these costs. It
is, therefore, declared to be in the public interest that these
contracts as a form of insurance be regulated under the police
power of the state to assure that all the people have the greatest access to health care services. [1983 c 286 § 1.]
(2004 Ed.)
48.44.315
Severability—1983 c 286: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1983 c 286 § 5.]
48.44.310
48.44.310 Chiropractic care, coverage required,
exceptions. (1) Each group contract for comprehensive
health care service which is entered into, or renewed, on or
after September 8, 1983, between a health care service contractor and the person or persons to receive such care shall
offer coverage for chiropractic care on the same basis as any
other care.
(2) A patient of a chiropractor shall not be denied benefits under a contract because the practitioner is not licensed
under chapter 18.57 or 18.71 RCW.
(3) This section shall not apply to a group contract for
comprehensive health care services entered into in accordance with a collective bargaining agreement between management and labor representatives. Benefits for chiropractic
care shall be offered by the employer in good faith on the
same basis as any other care as a subject for collective bargaining for group contracts for health care services. [1986 c
223 § 8; 1983 c 286 § 2.]
Severability—1983 c 286: See note following RCW 48.44.309.
48.44.315
48.44.315 Diabetes coverage—Definitions. The legislature finds that diabetes imposes a significant health risk and
tremendous financial burden on the citizens and government
of the state of Washington, and that access to the medically
accepted standards of care for diabetes, its treatment and supplies, and self-management training and education is crucial
to prevent or delay the short and long-term complications of
diabetes and its attendant costs.
(1) The definitions in this subsection apply throughout
this section unless the context clearly requires otherwise.
(a) "Person with diabetes" means a person diagnosed by
a health care provider as having insulin using diabetes, noninsulin using diabetes, or elevated blood glucose levels
induced by pregnancy; and
(b) "Health care provider" means a health care provider
as defined in RCW 48.43.005.
(2) All health benefit plans offered by health care service
contractors, issued or renewed after January 1, 1998, shall
provide benefits for at least the following services and supplies for persons with diabetes:
(a) For health benefit plans that include coverage for
pharmacy services, appropriate and medically necessary
equipment and supplies, as prescribed by a health care provider, that includes but is not limited to insulin, syringes,
injection aids, blood glucose monitors, test strips for blood
glucose monitors, visual reading and urine test strips, insulin
pumps and accessories to the pumps, insulin infusion
devices, prescriptive oral agents for controlling blood sugar
levels, foot care appliances for prevention of complications
associated with diabetes, and glucagon emergency kits; and
(b) For all health benefit plans, outpatient self-management training and education, including medical nutrition
therapy, as ordered by the health care provider. Diabetes outpatient self-management training and education may be provided only by health care providers with expertise in diabetes. Nothing in this section prevents the health care services
[Title 48 RCW—page 295]
48.44.320
Title 48 RCW: Insurance
contractor from restricting patients to seeing only health care
providers who have signed participating provider agreements
with the health care services contractor or an insuring entity
under contract with the health care services contractor.
(3) Coverage required under this section may be subject
to customary cost-sharing provisions established for all other
similar services or supplies within a policy.
(4) Health care coverage may not be reduced or eliminated due to this section.
(5) Services required under this section shall be covered
when deemed medically necessary by the medical director, or
his or her designee, subject to any referral and formulary
requirements.
(6) The health care service contractor need not include
the coverage required in this section in a group contract
offered to an employer or other group that offers to its eligible enrollees a self-insured health plan not subject to mandated benefits status under this title that does not offer coverage similar to that mandated under this section.
(7) This section does not apply to the health benefit plans
that provide benefits identical to the schedule of services covered by the basic health plan. [2004 c 244 § 12; 1997 c 276 §
4.]
Application—2004 c 244: See note following RCW 48.21.045.
Effective date—1997 c 276: See note following RCW 41.05.185.
death or is entering remission if certified in writing by the
attending physician;
(g) Home health care coverage shall provide benefits for
a minimum of one hundred thirty health care visits per calendar year. However, a visit of any duration by an employee of
a home health agency for the purpose of providing services
under the plan of treatment constitutes one visit;
(h) The coverage may be structured so that services or
supplies included in the primary contract are not duplicated
in the optional home health and hospice coverage.
(3) The insurance commissioner shall adopt any rules
necessary to implement this section.
(4) The requirements of this section shall not apply to
contracts or policies governed by chapter 48.66 RCW.
(5) An insurer, as a condition of reimbursement, may
require compliance with home health and hospice certification regulations established by the United States department
of health and human services. [1989 1st ex.s. c 9 § 222; 1988
c 245 § 33; 1984 c 22 § 3; 1983 c 249 § 3.]
Effective date—Severability—1989 1st ex.s. c 9: See RCW 43.70.910
and 43.70.920.
Effective date—Implementation—Severability—1988 c 245: See
RCW 70.127.900 and 70.127.902.
Effective date—1984 c 22: See note following RCW 48.21.220.
Effective date—1983 c 249: See note following RCW 70.126.001.
Home health care, hospice care, rules: Chapter 70.126 RCW.
48.44.320
48.44.320 Home health care, hospice care, optional
coverage required—Standards, limitations, restrictions—Rules—Medicare supplemental contracts
excluded. (1) Every health care service contractor entering
into or renewing a group health care service contract governed by this chapter shall offer optional coverage for home
health care and hospice care for persons who are homebound
and would otherwise require hospitalization. Such optional
coverage need only be offered in conjunction with a policy
that provides payment for hospitalization as a part of health
care coverage.
(2) Home health care and hospice care coverage offered
under subsection (1) of this section shall conform to the following standards, limitations, and restrictions in addition to
those set forth in chapters 70.126 and 70.127 RCW:
(a) The coverage may include reasonable deductibles,
coinsurance provisions, and internal maximums;
(b) The coverage should be structured to create incentives for the use of home health care and hospice care as an
alternative to hospitalization;
(c) The coverage may contain provisions for utilization
review and quality assurance;
(d) The coverage may require that home health agencies
and hospices have written treatment plans approved by a physician licensed under chapter 18.57 or 18.71 RCW, and may
require such treatment plans to be reviewed at designated
intervals;
(e) The coverage shall provide benefits for, and restrict
benefits to, services rendered by home health and hospice
agencies licensed under chapter 70.127 RCW;
(f) Hospice care coverage shall provide benefits for terminally ill patients for an initial period of care of not less than
six months and may provide benefits for an additional six
months of care in cases where the patient is facing imminent
[Title 48 RCW—page 296]
48.44.325 Mammograms—Insurance coverage.
Each health care service contract issued or renewed after January 1, 1990, that provides benefits for hospital or medical
care shall provide benefits for screening or diagnostic mammography services, provided that such services are delivered
upon the recommendation of the patient's physician or
advanced registered nurse practitioner as authorized by the
nursing care quality assurance commission pursuant to chapter 18.79 RCW or physician assistant pursuant to chapter
18.71A RCW.
This section shall not be construed to prevent the application of standard contract provisions applicable to other
benefits such as deductible or copayment provisions. This
section does not limit the authority of a contractor to negotiate rates and contract with specific providers for the delivery
of mammography services. This section shall not apply to
medicare supplement policies or supplemental contracts covering a specified disease or other limited benefits. [1994 sp.s.
c 9 § 734; 1989 c 338 § 3.]
48.44.325
Severability—Headings and captions not law—Effective date—
1994 sp.s. c 9: See RCW 18.79.900 through 18.79.902.
48.44.330 Reconstructive breast surgery. (1) Each
contract for health care entered into or renewed after July 24,
1983, between a health care services contractor and the person or persons to receive the care shall provide coverage for
reconstructive breast surgery resulting from a mastectomy
which resulted from disease, illness, or injury.
(2) Each contract for health care entered into or renewed
after January 1, 1986, between a health care services contractor and the person or persons to receive the care shall provide
coverage for all stages of one reconstructive breast reduction
on the nondiseased breast to make it equal in size with the
diseased breast after definitive reconstructive surgery on the
48.44.330
(2004 Ed.)
Health Care Services
48.44.350
diseased breast has been performed. [1985 c 54 § 7; 1983 c
113 § 3.]
Severability—Savings—1987 c 283: See notes following RCW
43.20A.020.
Effective date—1985 c 54: See note following RCW 48.20.397.
Legislative intent—Effective date—Severability—1986 c 184: See
notes following RCW 48.21.240.
48.44.335
48.44.335 Mastectomy, lumpectomy. No health care
service contractor under this chapter may refuse to issue any
contract or cancel or decline to renew the contract solely
because of a mastectomy or lumpectomy performed on the
insured or prospective insured more than five years previously. The amount of benefits payable, or any term, rate, condition, or type of coverage shall not be restricted, modified,
excluded, increased, or reduced solely on the basis of a mastectomy or lumpectomy performed on the insured or prospective insured more than five years previously. [1985 c 54 § 3.]
Effective date—1985 c 54: See note following RCW 48.20.397.
48.44.340
48.44.340 Mental health treatment, optional supplemental coverage—Waiver. (1) Each health care service
contractor providing hospital or medical services or benefits
in this state under group contracts for health care services
under this chapter which are issued, delivered, or renewed in
this state on or after July 1, 1986, shall offer optional supplemental coverage for mental health treatment for the insured
and the insured's covered dependents.
(2) Benefits shall be provided under the optional supplemental coverage for mental health treatment whether treatment is rendered by: (a) A physician licensed under chapter
18.71 or 18.57 RCW; (b) a psychologist licensed under chapter 18.83 RCW; (c) a community mental health agency
licensed by the department of social and health services pursuant to chapter 71.24 RCW; or (d) a state hospital as defined
in RCW 72.23.010. The treatment shall be covered at the
usual and customary rates for such treatment. The insurer,
health care service contractor, or health maintenance organization providing optional coverage under the provisions of
this section for mental health services may establish separate
usual and customary rates for services rendered by physicians
licensed under chapter 18.71 or 18.57 RCW, psychologists
licensed under chapter 18.83 RCW, and community mental
health centers licensed under chapter 71.24 RCW and state
hospitals as defined in RCW 72.23.010. However, the treatment may be subject to contract provisions with respect to
reasonable deductible amounts or copayments. In order to
qualify for coverage under this section, a licensed community
mental health agency shall have in effect a plan for quality
assurance and peer review, and the treatment shall be supervised by a physician licensed under chapter 18.71 or 18.57
RCW or by a psychologist licensed under chapter 18.83
RCW.
(3) The group contract for health care services may provide that all the coverage for mental health treatment is
waived for all covered members if the contract holder so
states in advance in writing to the health care service contractor.
(4) This section shall not apply to a group health care service contract that has been entered into in accordance with a
collective bargaining agreement between management and
labor representatives prior to March 1, 1987. [1987 c 283 §
4; 1986 c 184 § 3; 1983 c 35 § 2.]
(2004 Ed.)
Effective date—Severability—1983 c 35: See notes following RCW
48.21.240.
48.44.342
48.44.342 Mental health treatment—Waiver of preauthorization for persons involuntarily committed. A
health care service contractor providing hospital or medical
services or benefits in this state shall waive a preauthorization from the contractor before an insured or an insured's covered dependents receive mental health treatment rendered by
a state hospital as defined in RCW 72.23.010 if the insured or
the insured's covered dependents are involuntarily committed
to a state hospital as defined in RCW 72.23.010. [1993 c 272
§ 4.]
Savings—Severability—1993 c 272: See notes following RCW
43.20B.347.
48.44.344
48.44.344 Benefits for prenatal diagnosis of congenital disorders—Contracts entered into or renewed on or
after January 1, 1990. On or after January 1, 1990, every
group health care services contract entered into or renewed
that covers hospital, medical, or surgical expenses on a group
basis, and which provides benefits for pregnancy, childbirth,
or related medical conditions to enrollees of such groups,
shall offer benefits for prenatal diagnosis of congenital disorders of the fetus by means of screening and diagnostic procedures during pregnancy to such enrollees when those services
are determined to be medically necessary by the health care
service contractor in accord with standards set in rule by the
board of health. Every group health care services contractor
shall communicate the availability of such coverage to all
group health care service contract holders and to all groups
with whom they are negotiating. [1988 c 276 § 7.]
Prenatal testing—Limitation on changes to coverage: RCW 48.42.090.
48.44.350
48.44.350 Financial interests of health care service
contractors, restricted—Exceptions, regulations. (1) No
person having any authority in the investment or disposition
of the funds of a health care service contractor and no officer
or director of a health care service contractor shall accept,
except for the health care service contractor, or be the beneficiary of any fee, brokerage, gift, commission, or other emolument because of any sale of health care service agreements
or any investment, loan, deposit, purchase, sale, payment, or
exchange made by or for the health care service contractor, or
be pecuniarily interested therein in any capacity; except, that
such a person may procure a loan from the health care service
contractor directly upon approval by two-thirds of its directors and upon the pledge of securities eligible for the investment of the health care service contractor's funds under this
title.
(2) The commissioner may, by regulations, from time to
time, define and permit additional exceptions to the prohibition contained in subsection (1) of this section solely to
enable payment of reasonable compensation to a director
who is not otherwise an officer or employee of the health care
service contractor, or to a corporation or firm in which the
director is interested, for necessary services performed or
[Title 48 RCW—page 297]
48.44.360
Title 48 RCW: Insurance
sales or purchases made to or for the health care service contractor in the ordinary course of the health care service contractor's business and in the usual private professional or
business capacity of the director or the corporation or firm.
[1986 c 223 § 9; 1983 c 202 § 6.]
48.44.360
48.44.360 Continuation option to be offered. Every
health care service contractor that issues group contracts providing group coverage for hospital or medical expense shall
offer the contract holder an option to include a contract provision granting a person who becomes ineligible for coverage
under the group contract, the right to continue the group benefits for a period of time and at a rate agreed upon. The contract provision shall provide that when such coverage terminates, the covered person may convert to a contract as provided in RCW 48.44.370. [1984 c 190 § 5.]
Legislative intent—Severability—1984 c 190: See notes following
RCW 48.21.250.
Application—1984 c 190 §§ 2, 5, and 8: See note following RCW
48.21.250.
48.44.370
48.44.370 Conversion contract to be offered—Exceptions, conditions. (1) Except as otherwise provided by this
section, any group health care service contract entered into or
renewed on or after January 1, 1985, that provides benefits
for hospital or medical expenses shall contain a provision
granting a person covered by the group contract the right to
obtain a conversion contract from the contractor upon termination of the person's eligibility for coverage under the group
contract.
(2) A contractor need not offer a conversion contract to:
(a) A person whose coverage under the group contract
ended when the person's employment or membership was terminated for misconduct: PROVIDED, That when a person's
employment or membership is terminated for misconduct, a
conversion policy shall be offered to the spouse and/or
dependents of the terminated employee or member. The policy shall include in the conversion provisions the same conversion rights and conditions which are available to employees or members and their spouses and/or dependents who are
terminated for reasons other than misconduct;
(b) A person who is eligible for federal Medicare coverage; or
(c) A person who is covered under another group plan,
policy, contract, or agreement providing benefits for hospital
or medical care.
(3) To obtain the conversion contract, a person must submit a written application and the first premium payment for
the conversion contract not later than thirty-one days after the
date the person's eligibility for group coverage terminates.
The conversion contract shall become effective, without
lapse of coverage, immediately following termination of coverage under the group contract.
(4) If a health care service contractor or group contract
holder does not renew, cancels, or otherwise terminates the
group contract, the health care service contractor shall offer a
conversion contract to any person who was covered under the
terminated contract unless the person is eligible to obtain
group hospital or medical expense coverage within thirty-one
days after such nonrenewal, cancellation, or termination of
the group contract.
[Title 48 RCW—page 298]
(5) The health care service contractor shall determine the
premium for the conversion contract in accordance with the
contractor's table of premium rates applicable to the age and
class of risk of each person to be covered under the contract
and the type and amount of benefits provided. [1984 c 190 §
6.]
Legislative intent—Severability—1984 c 190: See notes following
RCW 48.21.250.
48.44.380 Conversion contract—Restrictions and
requirements. (1) A health care service contractor shall not
require proof of insurability as a condition for issuance of the
conversion contract.
(2) A conversion contract may not contain an exclusion
for preexisting conditions except to the extent that a waiting
period for a preexisting condition has not been satisfied under
the group contract.
(3) A health care service contractor must offer at least
three contract benefit plans that comply with the following:
(a) A major medical plan with a five thousand dollar
deductible and a lifetime benefit maximum of two hundred
fifty thousand dollars per person;
(b) A comprehensive medical plan with a five hundred
dollar deductible and a lifetime benefit maximum of five
hundred thousand dollars per person; and
(c) A basic medical plan with a one thousand dollar
deductible and a lifetime maximum of seventy-five thousand
dollars per person.
(4) The insurance commissioner may revise the deductibles and lifetime benefit amounts in subsection (3) of this
section from time to time to reflect changing health care
costs.
(5) The insurance commissioner shall adopt rules to
establish minimum benefit standards for conversion contracts.
(6) The commissioner shall adopt rules to establish specific standards for conversion contract provisions. These
rules may include but are not limited to:
(a) Terms of renewability;
(b) Nonduplication of coverage;
(c) Benefit limitations, exceptions, and reductions; and
(d) Definitions of terms. [1984 c 190 § 7.]
48.44.380
Legislative intent—Severability—1984 c 190: See notes following
RCW 48.21.250.
48.44.390 Modification of basis of agreement,
endorsement required. If an individual health care service
agreement is issued on any basis other than as applied for, an
endorsement setting forth such modification must accompany and be attached to the agreement. No agreement shall be
effective unless the endorsement is signed by the applicant,
and a signed copy thereof returned to the health care service
contractor. [1986 c 223 § 10.]
48.44.390
48.44.400 Continuance provisions for former family
members. After July 1, 1986, or on the next renewal date of
the agreement, whichever is later, every health care service
agreement issued, amended, or renewed for an individual and
his or her dependents shall contain provisions to assure that
the covered spouse and/or dependents, in the event that any
cease to be a qualified family member by reason of termina48.44.400
(2004 Ed.)
Health Care Services
tion of marriage or death of the principal enrollee, shall have
the right to continue the health care service agreement without a physical examination, statement of health, or other
proof of insurability. [1986 c 223 § 11.]
48.44.420
48.44.420 Coverage for adopted children. (1) Any
health care service contract under this chapter delivered or
issued for delivery in this state, which provides coverage for
dependent children, as defined in the contract of the subscriber, shall cover adoptive children placed with the subscriber on the same basis as other dependents, as provided in
RCW 48.01.180.
(2) If payment of an additional premium is required to
provide coverage for a child, the contract may require that
notification of placement of a child for adoption and payment
of the required premium must be furnished to the health care
services contractor. The notification period shall be no less
than sixty days from the date of placement. [1986 c 140 § 4.]
Effective date, application—Severability—1986 c 140: See notes following RCW 48.01.180.
48.44.430
48.44.430 Cancellation of rider. Upon application by
a subscriber, a rider shall be canceled if at least five years
after its issuance, no health care services have been received
by the subscriber during that time for the condition specified
in the rider, and a physician, selected by the carrier for that
purpose, agrees in writing to the full medical recovery of the
subscriber from that condition, such agreement not to be
unreasonably withheld. The option of the subscriber to apply
for cancellation shall be disclosed on the face of the rider in
clear and conspicuous language.
For purposes of this section, a rider is a legal document
that modifies a contract to exclude, limit, or reduce coverage
or benefits for specifically named or described preexisting
diseases or physical conditions. [1987 c 37 § 3.]
48.44.440
48.44.440 Phenylketonuria. (1) The legislature finds
that:
(a) Phenylketonuria is a rare inherited genetic disorder.
(b) Children with phenylketonuria are unable to metabolize an essential amino acid, phenylalanine, which is found in
the proteins of most food.
(c) To remain healthy, children with phenylketonuria
must maintain a strict diet and ingest a mineral and vitaminenriched formula.
(d) Children who do not maintain their diets with the formula acquire severe mental and physical difficulties.
(e) Originally, the formulas were listed as prescription
drugs but were reclassified as medical foods to increase their
availability.
(2) Subject to requirements and exceptions which may
be established by rules adopted by the commissioner, any
contract for health care services delivered or issued for delivery or renewed in this state on or after September 1, 1988,
shall provide coverage for the formulas necessary for the
treatment of phenylketonuria. [1988 c 173 § 3.]
48.44.450
4 8. 4 4 . 4 50 Neur od e v e lo pm e n ta l t he r a p ie s —
Employer-sponsored group contracts. (1) Each employersponsored group contract for comprehensive health care ser(2004 Ed.)
48.44.460
vice which is entered into, or renewed, on or after twelve
months after July 23, 1989, shall include coverage for neurodevelopmental therapies for covered individuals age six
and under.
(2) Benefits provided under this section shall cover the
services of those authorized to deliver occupational therapy,
speech therapy, and physical therapy. Benefits shall be payable only where the services have been delivered pursuant to
the referral and periodic review of a holder of a license issued
pursuant to chapter 18.71 or 18.57 RCW or where covered
services have been rendered by such licensee. Nothing in this
section shall prohibit a health care service contractor from
requiring that covered services be delivered by a provider
who participates by contract with the health care service contractor unless no participating provider is available to deliver
covered services. Nothing in this section shall prohibit a
health care service contractor from negotiating rates with
qualified providers.
(3) Benefits provided under this section shall be for medically necessary services as determined by the health care service contractor. Benefits shall be payable for services for the
maintenance of a covered individual in cases where significant deterioration in the patient's condition would result without the service. Benefits shall be payable to restore and
improve function.
(4) It is the intent of this section that employers purchasing comprehensive group coverage including the benefits
required by this section, together with the health care service
contractor, retain authority to design and employ utilization
and cost controls. Therefore, benefits delivered under this
section may be subject to contractual provisions regarding
deductible amounts and/or copayments established by the
employer purchasing coverage and the health care service
contractor. Benefits provided under this section may be subject to standard waiting periods for preexisting conditions,
and may be subject to the submission of written treatment
plans.
(5) In recognition of the intent expressed in subsection
(4) of this section, benefits provided under this section may
be subject to contractual provisions establishing annual
and/or lifetime benefit limits. Such limits may define the total
dollar benefits available or may limit the number of services
delivered as agreed by the employer purchasing coverage and
the health care service contractor. [1989 c 345 § 1.]
48.44.460 Temporomandibular joint disorders—
Insurance coverage. (1) Except as provided in this section,
a group health care service contract entered into or renewed
after December 31, 1989, shall offer optional coverage for the
treatment of temporomandibular joint disorders.
(a) Health care service contractors offering medical coverage only may limit benefits in such coverages to medical
services related to treatment of temporomandibular joint disorders. Health care service contractors offering dental coverage only may limit benefits in such coverage to dental services related to treatment of temporomandibular joint disorders. No health care service contractor offering medical
coverage only may define all temporomandibular joint disorders as purely dental in nature, and no health care service
contractor offering dental coverage only may define all temporomandibular joint disorders as purely medical in nature.
48.44.460
[Title 48 RCW—page 299]
48.44.465
Title 48 RCW: Insurance
(b) Health care contractors offering optional temporomandibular joint disorder coverage as provided in this section
may, but are not required to, offer lesser or no temporomandibular joint disorder coverage as part of their basic group
disability contract.
(c) Benefits and coverage offered under this section may
be subject to negotiation to promote broad flexibility in
potential benefit coverage. This flexibility shall apply to services to be reimbursed, determination of treatments to be
considered medically necessary, systems through which services are to be provided, including referral systems and use of
other providers, and related issues.
(2) Unless otherwise directed by law, the insurance commissioner shall adopt rules, to be implemented on January 1,
1993, establishing minimum benefits, terms, definitions, conditions, limitations, and provisions for the use of reasonable
deductibles and copayments.
(3) A contractor need not make the offer of coverage
required by this section to an employer or other group that
offers to its eligible enrollees a self-insured health plan not
subject to mandated benefit statutes under Title 48 RCW that
does not provide coverage for temporomandibular joint disorders. [1989 c 331 § 3.]
Legislative finding—Effective date—1989 c 331: See notes following
RCW 48.21.320.
48.44.465
48.44.465 Prescriptions—Preapproval of individual
claims—Subsequent rejection prohibited—Written
record required. Health care service contractors who
through an authorized representative have first approved, by
any means, an individual prescription claim as eligible may
not reject that claim at some later date. Pharmacists or drug
dispensing outlets who obtain preapproval of claims shall
keep a written record of the preapproval that consists of identification by name and telephone number of the person who
approved the claim. [1993 c 253 § 4.]
Findings—Effective date—1993 c 253: See notes following RCW
48.20.525.
48.44.470
48.44.470 Nonresident pharmacies. For the purposes
of this chapter, a nonresident pharmacy is defined as any
pharmacy located outside this state that ships, mails, or delivers, in any manner, except when delivered in person to an
enrolled participant or his/her representative, controlled substances, legend drugs, or devices into this state.
After October 1, 1991, a health care service contractor
providing coverage of prescription drugs from nonresident
pharmacies may only provide coverage from licensed nonresident pharmacies. The health care service contractors shall
obtain proof of current licensure in conformity with this section and RCW 18.64.350 through 18.64.400 from the nonresident pharmacy and keep that proof of licensure on file.
The department may request from the health care service
contractor the proof of current licensure for all nonresident
pharmacies through which the insurer is providing coverage
for prescription drugs for residents of the state of Washington. This information, which may constitute a full or partial
customer list, shall be confidential and exempt from public
disclosure, and from the requirements of chapter 42.17 RCW.
The board or the department shall not be restricted in the disclosure of the name of a nonresident pharmacy that is or has
[Title 48 RCW—page 300]
been licensed under RCW 18.64.360 or 18.64.370 or of the
identity of a nonresident pharmacy disciplined under RCW
18.64.350 through 18.64.400. [1991 c 87 § 9.]
Effective date—1991 c 87: See note following RCW 18.64.350.
48.44.500
48.44.500 Denturist services. Notwithstanding any
provision of any health care service contract covering dental
care as provided for in this chapter, effective January 1, 1995,
benefits shall not be denied thereunder for any service performed by a denturist licensed under chapter 18.30 RCW if
(1) the service performed was within the lawful scope of such
person's license, and (2) such contract would have provided
benefits if such service had been performed by a dentist
licensed under chapter 18.32 RCW. [1995 c 1 § 24 (Initiative
Measure No. 607, approved November 8, 1994).]
Short title—Severability—1995 c 1 (Initiative Measure No. 607):
See RCW 18.30.900 and 18.30.901.
48.44.530
48.44.530 Disclosure of certain material transactions—Report—Information is confidential. (1) Every
health care service contractor domiciled in this state shall file
a report with the commissioner disclosing material acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements
unless these acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements have been submitted to the commissioner
for review, approval, or information purposes under other
provisions of this title or other requirements.
(2) The report required in subsection (1) of this section is
due within fifteen days after the end of the calendar month in
which any of the transactions occur.
(3) One complete copy of the report, including any
exhibits or other attachments filed as part of the report, shall
be filed with the:
(a) Commissioner; and
(b) National association of insurance commissioners.
(4) All reports obtained by or disclosed to the commissioner under this section and RCW 48.44.535 through
48.44.555 are exempt from public inspection and copying
and shall not be subject to subpoena. These reports shall not
be made public by the commissioner, the national association
of insurance commissioners, or any other person, except to
insurance departments of other states, without the prior written consent of the health care service contractor to which it
pertains unless the commissioner, after giving the health care
service contractor that would be affected by disclosure notice
and a hearing under chapter 48.04 RCW, determines that the
interest of policyholders, subscribers, shareholders, or the
public will be served by the publication, in which event the
commissioner may publish all or any part of the report in the
manner he or she deems appropriate. [1995 c 86 § 13.]
48.44.535
48.44.535 Material acquisitions or dispositions. No
acquisitions or dispositions of assets need be reported pursuant to RCW 48.44.530 if the acquisitions or dispositions are
not material. For purposes of RCW 48.44.530 through
48.44.555, a material acquisition, or the aggregate of any
series of related acquisitions during any thirty-day period; or
disposition, or the aggregate of any series of related disposi(2004 Ed.)
Rural Health Care
tions during any thirty-day period is an acquisition or disposition that is nonrecurring and not in the ordinary course of
business and involves more than five percent of the reporting
health care service contractor's total assets as reported in its
most recent statutory statement filed with the commissioner.
[1995 c 86 § 14.]
48.44.540
48.44.540 Asset acquisitions—Asset dispositions. (1)
Asset acquisitions subject to RCW 48.44.530 through
48.44.555 include every purchase, lease, exchange, merger,
consolidation, succession, or other acquisition other than the
construction or development of real property by or for the
reporting health care service contractor or the acquisition of
materials for such purpose.
(2) Asset dispositions subject to RCW 48.44.530
through 48.44.555 include every sale, lease, exchange,
merger, consolidation, mortgage, hypothecation, abandonment, destruction, other disposition, or assignment, whether
for the benefit of creditors or otherwise. [1995 c 86 § 15.]
48.45.020
48.44.555
48.44.555 Report of a material nonrenewal, cancellation, or revision of ceded reinsurance agreements—Information required. The following is required to be disclosed
in any report of a material nonrenewal, cancellation, or revision of ceded reinsurance agreements:
(1) The effective date of the nonrenewal, cancellation, or
revision;
(2) The description of the transaction with an identification of the initiator;
(3) The purpose of or reason for the transaction; and
(4) If applicable, the identity of the replacement reinsurers. [1995 c 86 § 18.]
Chapter 48.45
Chapter 48.45 RCW
RURAL HEALTH CARE
Sections
48.45.005
48.45.010
48.45.020
48.45.030
Findings.
Definitions.
Rural health care service arrangements.
Rule making.
48.44.545
48.44.545 Report of a material acquisition or disposition of assets—Information required. The following information is required to be disclosed in any report of a material
acquisition or disposition of assets:
(1) Date of the transaction;
(2) Manner of acquisition or disposition;
(3) Description of the assets involved;
(4) Nature and amount of the consideration given or
received;
(5) Purpose of or reason for the transaction;
(6) Manner by which the amount of consideration was
determined;
(7) Gain or loss recognized or realized as a result of the
transaction; and
(8) Names of the persons from whom the assets were
acquired or to whom they were disposed. [1995 c 86 § 16.]
48.45.005
48.45.005 Findings. The legislature finds that the residents of rural communities are having difficulties in locating
and purchasing affordable health insurance. The legislature
further finds that many rural communities have sufficient
funds to pay for needed services, but those funds are being
expended elsewhere causing insufficient funding of local
health services. As part of the solution to this problem, rural
communities need to be able to structure the financing of
local health services to better serve local residents. The legislature further finds that as rural communities need well
financed and organized health care, it is in the interest of residents of rural communities that existing unauthorized entities comply with appropriate fiscal solvency standards and
consumer safeguards, and that those entities be given an
opportunity to come into compliance with existing state laws.
[1990 c 271 § 20.]
48.44.550
48.44.550 Material nonrenewals, cancellations, or
revisions of ceded reinsurance agreements. (1) No nonrenewals, cancellations, or revisions of ceded reinsurance
agreements need be reported under RCW 48.44.530 if the
nonrenewals, cancellations, or revisions are not material. For
purposes of RCW 48.44.530 through 48.44.555, a material
nonrenewal, cancellation, or revision is one that affects:
(a) More than fifty percent of a health care service contractor's total reserve credit taken for business ceded, on an
annualized basis, as indicated in the health care service contractor's most recent annual statement;
(b) More than ten percent of a health care service contractor's total cession when it is replaced by one or more
unauthorized reinsurers; or
(c) Previously established collateral requirements, when
they have been reduced or waived as respects one or more
unauthorized reinsurers representing collectively more than
ten percent of a total cession.
(2) However, a filing is not required if a health care service contractor's total reserve credit taken for business ceded
represents, on an annualized basis, less than ten percent of the
statutory reserve requirement prior to any cession. [1995 c
86 § 17.]
(2004 Ed.)
48.45.010
48.45.010 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Rural community" means any grouping of consumers, seventy-five percent of whom reside in areas outside of a
standard metropolitan statistical area as defined by the United
States bureau of census.
(2) "Consumer" means any person enrolled and eligible
to receive benefits in the rural health care arrangement.
(3) "Rural health care service arrangement" or "arrangement" means any arrangement which is established or maintained for the purpose of offering or providing through the
purchase of insurance or otherwise, medical, surgical, or hospital care or benefits in the event of sickness, accident, or disability in a rural community, as defined in this section, that is
subject to the jurisdiction of the insurance commissioner but
is not now a currently authorized carrier. [1990 c 271 § 22.]
48.45.020
48.45.020 Rural health care service arrangements.
Rural health care service arrangements existing on March 29,
1990, may continue in full operation only so long as they
comply with all of the following:
[Title 48 RCW—page 301]
48.45.030
Title 48 RCW: Insurance
(1) Within ten days following March 29, 1990, all rural
health care service arrangements shall inform the insurance
commissioner of their intent to apply for approval to operate
as an entity authorized under chapter 48.44 RCW or intend to
merge with an entity authorized under Title 48 RCW or
merge with an entity defined in this section;
(2) The arrangement submits an application for approval
as an entity authorized under chapter 48.44 RCW by May 1,
1990;
(3) The arrangement has one hundred thousand dollars
on deposit with the insurance commissioner by July 1, 1990;
(4) The arrangement has one hundred fifty thousand dollars on deposit with the insurance commissioner by September 1, 1990; and
(5) The arrangement complies with all reasonable
requirements of the insurance commissioner excluding the
deposit requirement, except as outlined in this section.
If such rural health care service arrangements fail to
comply with any of the above requirements, or if during the
application process an entity engages in any activities which
the insurance commissioner reasonably determines may
cause imminent harm to consumers, the entity may be subject
to appropriate legal action by the insurance commissioner
pursuant to the authority provided in Title 48 RCW.
A rural health care service arrangement which comes
into compliance with Title 48 RCW through the method outlined in this chapter shall be subject to all applicable requirements of Title 48 RCW except that the deposit requirements
shall not be increased until May 1, 1991. [1990 c 271 § 23.]
48.45.030
48.45.030 Rule making. The insurance commissioner,
pursuant to chapter 34.05 RCW, may promulgate rules to
implement RCW 48.45.010 and 48.45.020. [1990 c 271 §
24.]
Chapter 48.46 RCW
HEALTH MAINTENANCE ORGANIZATIONS
Chapter 48.46
Sections
48.46.010
48.46.012
48.46.020
48.46.023
48.46.027
48.46.030
48.46.033
48.46.040
48.46.045
48.46.060
48.46.062
48.46.064
48.46.066
48.46.068
48.46.070
48.46.080
48.46.090
Legislative declaration—Purpose.
Filings with secretary of state—Copy for commissioner.
Definitions.
Agent—Definition—License required—Application, issuance, renewal, fees—Penalties involving license.
Registration, required—Issuance of securities—Penalty.
Eligibility requirements for certificate of registration—Application requirements, information.
Unregistered activities—Acts committed in this state—Sanctions.
Certificate of registration—Issuance—Grounds for refusal—
Name restrictions—Inspection and review of facilities.
Catastrophic health plans permitted.
Prepayment agreements—Standards for forms and documents—Grounds for disapproval—Cancellation or failure to
renew—Filing of agreement forms.
Schedule of rates for individual agreements—Loss ratio—
Remittance of premiums—Definitions.
Calculation of premiums—Adjusted community rate—Definitions.
Health plan benefits for small employers—Coverage—
Exemption from statutory requirements—Premium rates—
Requirements for providing coverage for small employers.
Requirements for plans offered to small employers—Definitions.
Governing body.
Annual statement—Filings—Contents—Fee—Penalty for
failure to file—Accuracy required.
Standard of services provided.
[Title 48 RCW—page 302]
48.46.100
48.46.110
48.46.120
48.46.130
48.46.135
48.46.140
48.46.170
48.46.180
48.46.190
48.46.200
48.46.210
48.46.220
48.46.225
48.46.235
48.46.237
48.46.240
48.46.243
48.46.245
48.46.247
48.46.250
48.46.260
48.46.270
48.46.272
48.46.275
48.46.280
48.46.285
48.46.290
48.46.292
48.46.300
48.46.310
48.46.320
48.46.340
48.46.350
48.46.355
48.46.360
48.46.370
48.46.375
48.46.380
48.46.390
48.46.400
48.46.410
48.46.420
48.46.430
48.46.440
48.46.450
48.46.460
48.46.470
48.46.480
48.46.490
48.46.500
48.46.510
48.46.520
48.46.530
48.46.535
48.46.540
48.46.565
Grievance procedure.
Name restrictions—Discrimination—Recovery of costs of
health care services participant not entitled to.
Examination of health maintenance organizations—Duties of
organizations, powers of commissioner—Independent audit
reports—Assessment of organizations for costs, conditions.
Investigation of violations—Hearing—Findings—Penalties—
Order requiring compliance, etc.—Suspension or revocation
of certificate, effect—Application to courts.
Fine in addition to or in lieu of suspension, revocation, or
refusal.
Fees.
Effect of chapter as to other laws—Construction.
Duty of employer to inform and make available to employees
option of enrolling in health maintenance organization.
Payroll deductions for capitation payments to health maintenance organizations.
Rules and regulations.
Compliance with federal funding requirements—Construction.
Review of administrative action.
Financial failure—Supervision of commissioner—Priority of
distribution of assets.
Minimum net worth—Requirement to maintain—Determination of amount.
Minimum net worth—Domestic or foreign health maintenance
organization.
Funded reserve requirements.
Contract—Participant liability—Commissioner's review.
Plan for handling insolvency—Commissioner's review.
Insolvency—Commissioner's duties—Participants' options—
Allocation of coverage.
Coverage of dependent children—Newborn infants, congenital anomalies—Notification period.
Individual health maintenance agreement—Return within ten
days of delivery—Refunds—Void from beginning.
Financial interests of health maintenance organization authorities, restricted—Exceptions, regulations.
Diabetes coverage—Definitions.
Mammograms—Insurance coverage.
Reconstructive breast surgery.
Mastectomy, lumpectomy.
Mental health treatment, optional supplemental coverage—
Waiver.
Mental health treatment—Waiver of preauthorization for persons involuntarily committed.
Future dividends or refunds, restricted—Issuance or sale of
securities regulated.
Registration not endorsement.
Dependent children, termination of coverage, conditions.
Return of agreement within ten days.
Chemical dependency treatment.
"Chemical dependency" defined.
Payment of cost of agreement directly to holder during labor
dispute—Changes restricted—Notice to employee.
Coverage not denied for handicap.
Benefits for prenatal diagnosis of congenital disorders—
Agreements entered into or renewed on or after January 1,
1990.
Notice of reason for cancellation, denial, or refusal to renew
agreement.
Providing information on cancellation or refusal—No liability
for insurance commissioner or health maintenance organization.
False or misleading advertising prohibited.
Misrepresentations to induce termination or retention of agreement prohibited.
Penalty for violations.
Enforcement authority of commissioner.
Continuation option to be offered.
Conversion agreement to be offered—Exceptions, conditions.
Conversion agreement—Restrictions and requirements.
Endorsement of modifications.
Continuation of coverage of former family members.
Coverage for adopted children.
Cancellation of rider.
Phenylketonuria.
Neurodevelopmental therapies—Employer-sponsored group
contracts.
Temporomandibular joint disorders—Insurance coverage.
Prescriptions—Preapproval of individual claims—Subsequent
rejection prohibited—Written record required.
Nonresident pharmacies.
Foot care services.
(2004 Ed.)
Health Maintenance Organizations
48.46.570
48.46.575
48.46.580
48.46.600
48.46.605
48.46.610
48.46.615
48.46.620
48.46.625
48.46.900
48.46.910
48.46.920
Denturist services.
Doctor of osteopathic medicine and surgery—Discrimination
based on board certification is prohibited.
When injury caused by intoxication or use of narcotics.
Disclosure of certain material transactions—Report—Information is confidential.
Material acquisitions or dispositions.
Asset acquisitions—Asset dispositions.
Report of a material acquisition or disposition of assets—
Information required.
Material nonrenewals, cancellations, or revisions of ceded
reinsurance agreements.
Report of a material nonrenewal, cancellation, or revision of
ceded reinsurance agreements—Information required.
Liberal construction.
Severability—1975 1st ex.s. c 290.
Short title.
Agents of health maintenance organizations, additional regulations applicable: RCW 48.17.065.
Health care assistants: Chapter 18.135 RCW.
48.46.010
48.46.010 Legislative declaration—Purpose. In affirmation of the declared principle that health care is a right of
every citizen of the state, the legislature expresses its concern
that the present high costs of health care in Washington may
be preventing or inhibiting a large segment of the people
from obtaining access to quality health care services.
The legislature declares that the establishment of qualified prepaid group and individual practice health care delivery systems should be encouraged in order to provide all citizens of the state with the freedom of choice between competitive, alternative health care delivery systems necessary to
realize their right to health. It is the purpose and policy of this
chapter to provide for the development and registration of
prepaid group and individual practice health care plans as
health maintenance organizations, which the legislature
declares to be in the interest of the health, safety and welfare
of the people. [1975 1st ex.s. c 290 § 2.]
48.46.012
48.46.012 Filings with secretary of state—Copy for
commissioner. Health maintenance organizations shall send
a copy specifically for the office of the insurance commissioner to the secretary of state of any corporate document
required to be filed in the office of the secretary of state,
including articles of incorporation and bylaws, and any
amendments thereto. The copy specifically provided for the
office of the insurance commissioner shall be in addition to
the copies required by the secretary of state and shall clearly
indicate on the copy that it is for delivery to the office of the
insurance commissioner. [1998 c 23 § 17.]
48.46.020
48.46.020 Definitions. As used in this chapter, the
terms defined in this section shall have the meanings indicated unless the context indicates otherwise.
(1) "Health maintenance organization" means any organization receiving a certificate of registration by the commissioner under this chapter which provides comprehensive
health care services to enrolled participants of such organization on a group practice per capita prepayment basis or on a
prepaid individual practice plan, except for an enrolled participant's responsibility for copayments and/or deductibles,
either directly or through contractual or other arrangements
with other institutions, entities, or persons, and which qualifies as a health maintenance organization pursuant to RCW
48.46.030 and 48.46.040.
(2004 Ed.)
48.46.020
(2) "Comprehensive health care services" means basic
consultative, diagnostic, and therapeutic services rendered by
licensed health professionals together with emergency and
preventive care, inpatient hospital, outpatient and physician
care, at a minimum, and any additional health care services
offered by the health maintenance organization.
(3) "Enrolled participant" means a person who or group
of persons which has entered into a contractual arrangement
or on whose behalf a contractual arrangement has been
entered into with a health maintenance organization to
receive health care services.
(4) "Health professionals" means health care practitioners who are regulated by the state of Washington.
(5) "Health maintenance agreement" means an agreement for services between a health maintenance organization
which is registered pursuant to the provisions of this chapter
and enrolled participants of such organization which provides
enrolled participants with comprehensive health services rendered to enrolled participants by health professionals, groups,
facilities, and other personnel associated with the health
maintenance organization.
(6) "Consumer" means any member, subscriber,
enrollee, beneficiary, or other person entitled to health care
services under terms of a health maintenance agreement, but
not including health professionals, employees of health maintenance organizations, partners, or shareholders of stock corporations licensed as health maintenance organizations.
(7) "Meaningful role in policy making" means a procedure approved by the commissioner which provides consumers or elected representatives of consumers a means of submitting the views and recommendations of such consumers to
the governing board of such organization coupled with reasonable assurance that the board will give regard to such
views and recommendations.
(8) "Meaningful grievance procedure" means a procedure for investigation of consumer grievances in a timely
manner aimed at mutual agreement for settlement according
to procedures approved by the commissioner, and which may
include arbitration procedures.
(9) "Provider" means any health professional, hospital,
or other institution, organization, or person that furnishes any
health care services and is licensed or otherwise authorized to
furnish such services.
(10) "Department" means the state department of social
and health services.
(11) "Commissioner" means the insurance commissioner.
(12) "Group practice" means a partnership, association,
corporation, or other group of health professionals:
(a) The members of which may be individual health professionals, clinics, or both individuals and clinics who engage
in the coordinated practice of their profession; and
(b) The members of which are compensated by a prearranged salary, or by capitation payment or drawing account
that is based on the number of enrolled participants.
(13) "Individual practice health care plan" means an
association of health professionals in private practice who
associate for the purpose of providing prepaid comprehensive
health care services on a fee-for-service or capitation basis.
(14) "Uncovered expenditures" means the costs to the
health maintenance organization of health care services that
[Title 48 RCW—page 303]
48.46.023
Title 48 RCW: Insurance
are the obligation of the health maintenance organization for
which an enrolled participant would also be liable in the
event of the health maintenance organization's insolvency
and for which no alternative arrangements have been made as
provided herein. The term does not include expenditures for
covered services when a provider has agreed not to bill the
enrolled participant even though the provider is not paid by
the health maintenance organization, or for services that are
guaranteed, insured, or assumed by a person or organization
other than the health maintenance organization.
(15) "Copayment" means an amount specified in a subscriber agreement which is an obligation of an enrolled participant for a specific service which is not fully prepaid.
(16) "Deductible" means the amount an enrolled participant is responsible to pay out-of-pocket before the health
maintenance organization begins to pay the costs associated
with treatment.
(17) "Fully subordinated debt" means those debts that
meet the requirements of RCW 48.46.235(3) and are
recorded as equity.
(18) "Net worth" means the excess of total admitted
assets as defined in RCW 48.12.010 over total liabilities but
the liabilities shall not include fully subordinated debt.
(19) "Participating provider" means a provider as
defined in subsection (9) of this section who contracts with
the health maintenance organization or with its contractor or
subcontractor and has agreed to provide health care services
to enrolled participants with an expectation of receiving payment, other than copayment or deductible, directly or indirectly, from the health maintenance organization.
(20) "Carrier" means a health maintenance organization,
an insurer, a health care services contractor, or other entity
responsible for the payment of benefits or provision of services under a group or individual agreement.
(21) "Replacement coverage" means the benefits provided by a succeeding carrier.
(22) "Insolvent" or "insolvency" means that the organization has been declared insolvent and is placed under an
order of liquidation by a court of competent jurisdiction.
[1990 c 119 § 1; 1983 c 106 § 1; 1982 c 151 § 1; 1975 1st
ex.s. c 290 § 3.]
Effective date—1982 c 151: "This act shall take effect on January 1,
1983." [1982 c 151 § 5.]
48.46.023
48.46.023 Agent—Definition—License required—
Application, issuance, renewal, fees—Penalties involving
license. (1) Agent, as used in this chapter, means any person
appointed or authorized by a health maintenance organization
to solicit applications for health care service agreements on
its behalf.
(2) No person shall act as or hold himself out to be an
agent of a health maintenance organization unless licensed as
a disability insurance agent by this state and appointed or
authorized by the health maintenance organization on whose
behalf solicitations are to be made.
(3) Applications, appointments, and qualifications for
licenses, the renewal thereof, the fees and issuance of a
license, and the renewal thereof shall be in accordance with
the provisions of chapter 48.17 RCW that are applicable to a
disability insurance agent.
[Title 48 RCW—page 304]
(4) A person holding a valid license in this state as a
health maintenance organization agent on July 24, 1983, is
not required to requalify by an examination for the renewal of
the license.
(5) The commissioner may revoke, suspend, or refuse to
issue or renew any agent's license, or levy a fine upon the licensee, in accordance with those provisions of chapter 48.17
RCW that are applicable to a disability insurance agent.
[1983 c 202 § 8.]
48.46.027
48.46.027 Registration, required—Issuance of securities—Penalty. (1) A person may not in this state, by mail
or otherwise, act as or hold himself or herself out to be a
health maintenance organization as defined in RCW
48.46.020 without first being registered with the commissioner.
(2) The issuance, sale, or offer for sale in this state of
securities of its own issue by any health maintenance organization domiciled in this state other than the memberships and
bonds of a nonprofit corporation is subject to the provisions
of chapter 48.06 RCW relating to obtaining solicitation permits the same as if health maintenance organizations were
domestic insurers.
(3) Any person violating any provision of subsection (2)
of this section is guilty of a gross misdemeanor and will, upon
conviction, be fined not more than one thousand dollars, or
imprisoned for not more than six months, or both, for each
violation. [2003 c 250 § 10; 1983 c 202 § 9.]
Severability—2003 c 250: See note following RCW 48.01.080.
48.46.030
48.46.030 Eligibility requirements for certificate of
registration—Application requirements, information.
Any corporation, cooperative group, partnership, individual,
association, or groups of health professionals licensed by the
state of Washington, public hospital district, or public institutions of higher education shall be entitled to a certificate of
registration from the insurance commissioner as a health
maintenance organization if it:
(1) Provides comprehensive health care services to
enrolled participants on a group practice per capita prepayment basis or on a prepaid individual practice plan and provides such health services either directly or through arrangements with institutions, entities, and persons which its
enrolled population might reasonably require as determined
by the health maintenance organization in order to be maintained in good health; and
(2) Is governed by a board elected by enrolled participants, or otherwise provides its enrolled participants with a
meaningful role in policy making procedures of such organization, as defined in RCW 48.46.020(7), and 48.46.070; and
(3) Affords enrolled participants with a meaningful
grievance procedure aimed at settlement of disputes between
such persons and such health maintenance organization, as
defined in RCW 48.46.020(8) and 48.46.100; and
(4) Provides enrolled participants, or makes available for
inspection at least annually, financial statements pertaining to
health maintenance agreements, disclosing income and
expenses, assets and liabilities, and the bases for proposed
rate adjustments for health maintenance agreements relating
to its activity as a health maintenance organization; and
(2004 Ed.)
Health Maintenance Organizations
(5) Demonstrates to the satisfaction of the commissioner
that its facilities and personnel are reasonably adequate to
provide comprehensive health care services to enrolled participants and that it is financially capable of providing such
members with, or has made adequate contractual arrangements through insurance or otherwise to provide such members with, such health services; and
(6) Substantially complies with administrative rules and
regulations of the commissioner for purposes of this chapter;
and
(7) Submits an application for a certificate of registration
which shall be verified by an officer or authorized representative of the applicant, being in form as the commissioner
prescribes, and setting forth:
(a) A copy of the basic organizational document, if any,
of the applicant, such as the articles of incorporation, articles
of association, partnership agreement, trust agreement, or
other applicable documents, and all amendments thereto;
(b) A copy of the bylaws, rules and regulations, or similar documents, if any, which regulate the conduct of the internal affairs of the applicant, and all amendments thereto;
(c) A list of the names, addresses, members of the board
of directors, board of trustees, executive committee, or other
governing board or committee and the principal officers,
partners, or members;
(d) A full and complete disclosure of any financial interests held by any officer, or director in any provider associated
with the applicant or any provider of the applicant;
(e) A description of the health maintenance organization,
its facilities and its personnel, and the applicant's most recent
financial statement showing such organization's assets, liabilities, income, and other sources of financial support;
(f) A description of the geographic areas and the population groups to be served and the size and composition of the
anticipated enrollee population;
(g) A copy of each type of health maintenance agreement
to be issued to enrolled participants;
(h) A schedule of all proposed rates of reimbursement to
contracting health care facilities or providers, if any, and a
schedule of the proposed charges for enrollee coverage for
health care services, accompanied by data relevant to the formulation of such schedules;
(i) A description of the proposed method and schedule
for soliciting enrollment in the applicant health maintenance
organization and the basis of compensation for such solicitation services;
(j) A copy of the solicitation document to be distributed
to all prospective enrolled participants in connection with any
solicitation;
(k) A financial projection which sets forth the anticipated
results during the initial two years of operation of such organization, accompanied by a summary of the assumptions and
relevant data upon which the projection is based. The projection should include the projected expenses, enrollment
trends, income, enrollee utilization patterns, and sources of
working capital;
(l) A detailed description of the enrollee complaint system as provided by RCW 48.46.100;
(m) A detailed description of the procedures and programs to be implemented to assure that the health care ser(2004 Ed.)
48.46.040
vices delivered to enrolled participants will be of professional
quality;
(n) A detailed description of procedures to be implemented to meet the requirements to protect against insolvency in RCW 48.46.245;
(o) Documentation that the health maintenance organization has an initial net worth of one million dollars and shall
thereafter maintain the minimum net worth required under
RCW 48.46.235; and
(p) Such other information as the commissioner shall
require by rule or regulation which is reasonably necessary to
carry out the provisions of this section.
A health maintenance organization shall, unless otherwise provided for in this chapter, file a notice describing any
modification of any of the information required by subsection
(7) of this section. Such notice shall be filed with the commissioner. [1990 c 119 § 2; 1985 c 320 § 1; 1983 c 106 § 2; 1975
1st ex.s. c 290 § 4.]
48.46.033
48.46.033 Unregistered activities—Acts committed
in this state—Sanctions. (1) As used in this section, "person" has the same meaning as in RCW 48.01.070.
(2) For the purpose of this section, an act is committed in
this state if it is committed, in whole or in part, in the state of
Washington, or affects persons or property within the state
and relates to or involves a health maintenance agreement.
(3) Any person who knowingly violates RCW
48.46.027(1) is guilty of a class B felony punishable under
chapter 9A.20 RCW.
(4) Any criminal penalty imposed under this section is in
addition to, and not in lieu of, any other civil or administrative penalty or sanction otherwise authorized under state law.
(5)(a) If the commissioner has cause to believe that any
person has violated the provisions of RCW 48.46.027(1), the
commissioner may:
(i) Issue and enforce a cease and desist order in accordance with the provisions of RCW 48.02.080; and/or
(ii) Assess a civil penalty of not more than twenty-five
thousand dollars for each violation, after providing notice and
an opportunity for a hearing in accordance with chapters
34.05 and 48.04 RCW.
(b) Upon failure to pay a civil penalty when due, the
attorney general may bring a civil action on behalf of the
commissioner to recover the unpaid penalty. Any amounts
collected by the commissioner must be paid to the state treasurer for the account of the general fund. [2003 c 250 § 11.]
Severability—2003 c 250: See note following RCW 48.01.080.
48.46.040
48.46.040 Certificate of registration—Issuance—
Grounds for refusal—Name restrictions—Inspection and
review of facilities. The commissioner shall issue a certificate of registration to the applicant within sixty days of such
filing unless he notifies the applicant within such time that
such application is not complete and the reasons therefor; or
that he is not satisfied that:
(1) The basic organizational document of the applicant
permits the applicant to conduct business as a health maintenance organization;
(2) The organization has demonstrated the intent and
ability to assure that comprehensive health care services will
[Title 48 RCW—page 305]
48.46.045
Title 48 RCW: Insurance
be provided in a manner to assure both their availability and
accessibility;
(3) The organization is financially responsible and may
be reasonably expected to meet its obligations to its enrolled
participants. In making this determination, the commissioner
shall consider among other relevant factors:
(a) Any agreements with an insurer, a medical or hospital
service bureau, a government agency or any other organization paying or insuring payment for health care services;
(b) Any agreements with providers for the provision of
health care services;
(c) Any arrangements for liability and malpractice insurance coverage; and
(d) Adequate procedures to be implemented to meet the
protection against insolvency requirements in RCW
48.46.245.
(4) The procedures for offering health care services and
offering or terminating contracts with enrolled participants
are reasonable and equitable in comparison with prevailing
health insurance subscription practices and health maintenance organization enrollment procedures; and, that
(5) Procedures have been established to:
(a) Monitor the quality of care provided by such organization, including, as a minimum, procedures for internal peer
review;
(b) Resolve complaints and grievances initiated by
enrolled participants in accordance with RCW 48.46.010 and
48.46.100;
(c) Offer enrolled participants an opportunity to participate in matters of policy and operation in accordance with
RCW 48.46.020(7) and 48.46.070.
No person to whom a certificate of registration has not
been issued, except a health maintenance organization certified by the secretary of the department of health and human
services, pursuant to Public Law 93-222 or its successor,
shall use the words "health maintenance organization" or the
initials "HMO" in its name, contracts, or literature. Persons
who are contracting with, operating in association with,
recruiting enrolled participants for, or otherwise authorized
by a health maintenance organization possessing a certificate
of registration to act on its behalf may use the terms "health
maintenance organization" or "HMO" for the limited purpose
of denoting or explaining their relationship to such health
maintenance organization.
The department of health, at the request of the insurance
commissioner, shall inspect and review the facilities of every
applicant health maintenance organization to determine that
such facilities are reasonably adequate to provide the health
care services offered in their contracts. If the commissioner
has information to indicate that such facilities fail to continue
to be adequate to provide the health care services offered, the
department of health, upon request of the insurance commissioner, shall reinspect and review the facilities and report to
the insurance commissioner as to their adequacy or inadequacy. [1990 c 119 § 3; 1989 1st ex.s. c 9 § 223; 1983 c 106
§ 3; 1975 1st ex.s. c 290 § 5.]
Effective date—Severability—1989 1st ex.s. c 9: See RCW 43.70.910
and 43.70.920.
48.46.045
48.46.045 Catastrophic health plans permitted. Notwithstanding the provisions of this chapter, a health mainte[Title 48 RCW—page 306]
nance organization may offer catastrophic health plans as
defined in RCW 48.43.005. [2000 c 79 § 27.]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
48.46.060
48.46.060 Prepayment agreements—Standards for
forms and documents—Grounds for disapproval—Cancellation or failure to renew—Filing of agreement forms.
(1) Any health maintenance organization may enter into
agreements with or for the benefit of persons or groups of
persons, which require prepayment for health care services
by or for such persons in consideration of the health maintenance organization providing health care services to such
persons. Such activity is not subject to the laws relating to
insurance if the health care services are rendered directly by
the health maintenance organization or by any provider
which has a contract or other arrangement with the health
maintenance organization to render health services to
enrolled participants.
(2) All forms of health maintenance agreements issued
by the organization to enrolled participants or other marketing documents purporting to describe the organization's comprehensive health care services shall comply with such minimum standards as the commissioner deems reasonable and
necessary in order to carry out the purposes and provisions of
this chapter, and which fully inform enrolled participants of
the health care services to which they are entitled, including
any limitations or exclusions thereof, and such other rights,
responsibilities and duties required of the contracting health
maintenance organization.
(3) Subject to the right of the health maintenance organization to demand and receive a hearing under chapters 48.04
and 34.05 RCW, the commissioner may disapprove an individual or group agreement form for any of the following
grounds:
(a) If it contains or incorporates by reference any inconsistent, ambiguous, or misleading clauses, or exceptions or
conditions which unreasonably or deceptively affect the risk
purported to be assumed in the general coverage of the agreement;
(b) If it has any title, heading, or other indication which
is misleading;
(c) If purchase of health care services thereunder is being
solicited by deceptive advertising;
(d) If it contains unreasonable restrictions on the treatment of patients;
(e) If it is in any respect in violation of this chapter or if
it fails to conform to minimum provisions or standards
required by the commissioner by rule under chapter 34.05
RCW; or
(f) If any agreement for health care services with any
state agency, division, subdivision, board, or commission or
with any political subdivision, municipal corporation, or
quasi-municipal corporation fails to comply with state law.
(4) In addition to the grounds listed in subsection (2) of
this section, the commissioner may disapprove any group
agreement if the benefits provided therein are unreasonable
in relation to the amount charged for the agreement.
(5) No health maintenance organization authorized
under this chapter shall cancel or fail to renew the enrollment
on any basis of an enrolled participant or refuse to transfer an
(2004 Ed.)
Health Maintenance Organizations
enrolled participant from a group to an individual basis for
reasons relating solely to age, sex, race, or health status.
Nothing contained herein shall prevent cancellation of an
agreement with enrolled participants (a) who violate any published policies of the organization which have been approved
by the commissioner, or (b) who are entitled to become eligible for medicare benefits and fail to enroll for a medicare supplement plan offered by the health maintenance organization
and approved by the commissioner, or (c) for failure of such
enrolled participant to pay the approved charge, including
cost-sharing, required under such contract, or (d) for a material breach of the health maintenance agreement.
(6) No agreement form or amendment to an approved
agreement form shall be used unless it is first filed with the
commissioner. [2000 c 79 § 31; 1989 c 10 § 10. Prior: 1985
c 320 § 2; 1985 c 283 § 2; 1983 c 106 § 4; 1975 1st ex.s. c 290
§ 7.]
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
48.46.062
48.46.062 Schedule of rates for individual agreements—Loss ratio—Remittance of premiums—Definitions. (1) The definitions in this subsection apply throughout
this section unless the context clearly requires otherwise.
(a) "Claims" means the cost to the health maintenance
organization of health care services, as defined in RCW
48.43.005, provided to an enrollee or paid to or on behalf of
the enrollee in accordance with the terms of a health benefit
plan, as defined in RCW 48.43.005. This includes capitation
payments or other similar payments made to providers for the
purpose of paying for health care services for an enrollee.
(b) "Claims reserves" means: (i) The liability for claims
which have been reported but not paid; (ii) the liability for
claims which have not been reported but which may reasonably be expected; (iii) active life reserves; and (iv) additional
claims reserves whether for a specific liability purpose or not.
(c) "Earned premiums" means premiums, as defined in
RCW 48.43.005, plus any rate credits or recoupments less
any refunds, for the applicable period, whether received
before, during, or after the applicable period.
(d) "Incurred claims expense" means claims paid during
the applicable period plus any increase, or less any decrease,
in the claims reserves.
(e) "Loss ratio" means incurred claims expense as a percentage of earned premiums.
(f) "Reserves" means: (i) Active life reserves; and (ii)
additional reserves whether for a specific liability purpose or
not.
(2) A health maintenance organization shall file, for
informational purposes only, a notice of its schedule of rates
for its individual agreements with the commissioner prior to
use.
(3) A health maintenance organization shall file with the
notice required under subsection (2) of this section supporting documentation of its method of determining the rates
charged. The commissioner may request only the following
supporting documentation:
(a) A description of the health maintenance organization's rate-making methodology;
(b) An actuarially determined estimate of incurred
claims which includes the experience data, assumptions, and
(2004 Ed.)
48.46.062
justifications of the health maintenance organization's projection;
(c) The percentage of premium attributable in aggregate
for nonclaims expenses used to determine the adjusted community rates charged; and
(d) A certification by a member of the American academy of actuaries, or other person approved by the commissioner, that the adjusted community rate charged can be reasonably expected to result in a loss ratio that meets or exceeds
the loss ratio standard established in subsection (7) of this
section.
(4) The commissioner may not disapprove or otherwise
impede the implementation of the filed rates.
(5) By the last day of May each year any health maintenance organization issuing or renewing individual health
benefit plans in this state during the preceding calendar year
shall file for review by the commissioner supporting documentation of its actual loss ratio for its individual health benefit plans offered or renewed in the state in aggregate for the
preceding calendar year. The filing shall include aggregate
earned premiums, aggregate incurred claims, and a certification by a member of the American academy of actuaries, or
other person approved by the commissioner, that the actual
loss ratio has been calculated in accordance with accepted
actuarial principles.
(a) At the expiration of a thirty-day period beginning
with the date the filing is received by the commissioner, the
filing shall be deemed approved unless prior thereto the commissioner contests the calculation of the actual loss ratio.
(b) If the commissioner contests the calculation of the
actual loss ratio, the commissioner shall state in writing the
grounds for contesting the calculation to the health maintenance organization.
(c) Any dispute regarding the calculation of the actual
loss ratio shall, upon written demand of either the commissioner or the health maintenance organization, be submitted
to hearing under chapters 48.04 and 34.05 RCW.
(6) If the actual loss ratio for the preceding calendar year
is less than the loss ratio standard established in subsection
(7) of this section, a remittance is due and the following shall
apply:
(a) The health maintenance organization shall calculate a
percentage of premium to be remitted to the Washington state
health insurance pool by subtracting the actual loss ratio for
the preceding year from the loss ratio established in subsection (7) of this section.
(b) The remittance to the Washington state health insurance pool is the percentage calculated in (a) of this subsection, multiplied by the premium earned from each enrollee in
the previous calendar year. Interest shall be added to the
remittance due at a five percent annual rate calculated from
the end of the calendar year for which the remittance is due to
the date the remittance is made.
(c) All remittances shall be aggregated and such amounts
shall be remitted to the Washington state high risk pool to be
used as directed by the pool board of directors.
(d) Any remittance required to be issued under this section shall be issued within thirty days after the actual loss
ratio is deemed approved under subsection (5)(a) of this section or the determination by an administrative law judge
under subsection (5)(c) of this section.
[Title 48 RCW—page 307]
48.46.064
Title 48 RCW: Insurance
(7) The loss ratio applicable to this section shall be seventy-four percent minus the premium tax rate applicable to
the health maintenance organization's individual health benefit plans under RCW 48.14.0201. [2001 c 196 § 12; 2000 c
79 § 32.]
Effective date—2001 c 196: See note following RCW 48.20.025.
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
48.46.064 Calculation of premiums—Adjusted community rate—Definitions. (1) Premium rates for health
benefit plans for individuals shall be subject to the following
provisions:
(a) The health maintenance organization shall develop
its rates based on an adjusted community rate and may only
vary the adjusted community rate for:
(i) Geographic area;
(ii) Family size;
(iii) Age;
(iv) Tenure discounts; and
(v) Wellness activities.
(b) The adjustment for age in (a)(iii) of this subsection
may not use age brackets smaller than five-year increments
which shall begin with age twenty and end with age sixtyfive. Individuals under the age of twenty shall be treated as
those age twenty.
(c) The health maintenance organization shall be permitted to develop separate rates for individuals age sixty-five or
older for coverage for which medicare is the primary payer
and coverage for which medicare is not the primary payer.
Both rates shall be subject to the requirements of this subsection.
(d) The permitted rates for any age group shall be no
more than four hundred twenty-five percent of the lowest rate
for all age groups on January 1, 1996, four hundred percent
on January 1, 1997, and three hundred seventy-five percent
on January 1, 2000, and thereafter.
(e) A discount for wellness activities shall be permitted
to reflect actuarially justified differences in utilization or cost
attributed to such programs.
(f) The rate charged for a health benefit plan offered
under this section may not be adjusted more frequently than
annually except that the premium may be changed to reflect:
(i) Changes to the family composition;
(ii) Changes to the health benefit plan requested by the
individual; or
(iii) Changes in government requirements affecting the
health benefit plan.
(g) For the purposes of this section, a health benefit plan
that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not
contain such a provision, provided that the restrictions of
benefits to network providers result in substantial differences
in claims costs. This subsection does not restrict or enhance
the portability of benefits as provided in RCW 48.43.015.
(h) A tenure discount for continuous enrollment in the
health plan of two years or more may be offered, not to
exceed ten percent.
(2) Adjusted community rates established under this section shall pool the medical experience of all individuals purchasing coverage, and shall not be required to be pooled with
48.46.064
[Title 48 RCW—page 308]
the medical experience of health benefit plans offered to
small employers under RCW 48.46.066.
(3) As used in this section and RCW 48.46.066, "health
benefit plan," "adjusted community rate," "small employer,"
and "wellness activities" mean the same as defined in RCW
48.43.005. [2004 c 244 § 8; 2000 c 79 § 33; 1997 c 231 §
209; 1995 c 265 § 17.]
Application—2004 c 244: See note following RCW 48.21.045.
Effective date—Severability—2000 c 79: See notes following RCW
48.04.010.
Short title—Part headings and captions not law—Severability—
Effective dates—1997 c 231: See notes following RCW 48.43.005.
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
48.46.066
48.46.066 Health plan benefits for small employers—
Coverage—Exemption from statutory requirements—
Premium rates—Requirements for providing coverage
for small employers. (1)(a) A health maintenance organization offering any health benefit plan to a small employer,
either directly or through an association or member-governed
group formed specifically for the purpose of purchasing
health care, may offer and actively market to the small
employer a health benefit plan featuring a limited schedule of
covered health care services. Nothing in this subsection shall
preclude a health maintenance organization from offering, or
a small employer from purchasing, other health benefit plans
that may have more comprehensive benefits than those
included in the product offered under this subsection. A
health maintenance organization offering a health benefit
plan under this subsection shall clearly disclose all the covered benefits to the small employer in a brochure filed with
the commissioner.
(b) A health benefit plan offered under this subsection
shall provide coverage for hospital expenses and services
rendered by a physician licensed under chapter 18.57 or
18.71 RCW but is not subject to the requirements of RCW
48.46.275, 48.46.280, 48.46.285, 48.46.290, 48.46.350,
48.46.355, 48.46.375, 48.46.440, 48.46.480, 48.46.510,
48.46.520, and 48.46.530.
(2) Nothing in this section shall prohibit a health maintenance organization from offering, or a purchaser from seeking, health benefit plans with benefits in excess of the health
benefit plan offered under subsection (1) of this section. All
forms, policies, and contracts shall be submitted for approval
to the commissioner, and the rates of any plan offered under
this section shall be reasonable in relation to the benefits
thereto.
(3) Premium rates for health benefit plans for small
employers as defined in this section shall be subject to the
following provisions:
(a) The health maintenance organization shall develop
its rates based on an adjusted community rate and may only
vary the adjusted community rate for:
(i) Geographic area;
(ii) Family size;
(iii) Age; and
(iv) Wellness activities.
(b) The adjustment for age in (a)(iii) of this subsection
may not use age brackets smaller than five-year increments,
which shall begin with age twenty and end with age sixty(2004 Ed.)
Health Maintenance Organizations
five. Employees under the age of twenty shall be treated as
those age twenty.
(c) The health maintenance organization shall be permitted to develop separate rates for individuals age sixty-five or
older for coverage for which medicare is the primary payer
and coverage for which medicare is not the primary payer.
Both rates shall be subject to the requirements of this subsection (3).
(d) The permitted rates for any age group shall be no
more than four hundred twenty-five percent of the lowest rate
for all age groups on January 1, 1996, four hundred percent
on January 1, 1997, and three hundred seventy-five percent
on January 1, 2000, and thereafter.
(e) A discount for wellness activities shall be permitted
to reflect actuarially justified differences in utilization or cost
attributed to such programs.
(f) The rate charged for a health benefit plan offered
under this section may not be adjusted more frequently than
annually except that the premium may be changed to reflect:
(i) Changes to the enrollment of the small employer;
(ii) Changes to the family composition of the employee;
(iii) Changes to the health benefit plan requested by the
small employer; or
(iv) Changes in government requirements affecting the
health benefit plan.
(g) Rating factors shall produce premiums for identical
groups that differ only by the amounts attributable to plan
design, with the exception of discounts for health improvement programs.
(h) For the purposes of this section, a health benefit plan
that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not
contain such a provision, provided that the restrictions of
benefits to network providers result in substantial differences
in claims costs. A carrier may develop its rates based on
claims costs due to network provider reimbursement schedules or type of network. This subsection does not restrict or
enhance the portability of benefits as provided in RCW
48.43.015.
(i) Adjusted community rates established under this section shall pool the medical experience of all groups purchasing coverage. However, annual rate adjustments for each
small group health benefit plan may vary by up to plus or
minus four percentage points from the overall adjustment of
a carrier's entire small group pool, such overall adjustment to
be approved by the commissioner, upon a showing by the
carrier, certified by a member of the American academy of
actuaries that: (i) The variation is a result of deductible leverage, benefit design, or provider network characteristics; and
(ii) for a rate renewal period, the projected weighted average
of all small group benefit plans will have a revenue neutral
effect on the carrier's small group pool. Variations of greater
than four percentage points are subject to review by the commissioner, and must be approved or denied within sixty days
of submittal. A variation that is not denied within sixty days
shall be deemed approved. The commissioner must provide
to the carrier a detailed actuarial justification for any denial
within thirty days of the denial.
(4) Nothing in this section shall restrict the right of
employees to collectively bargain for insurance providing
benefits in excess of those provided herein.
(2004 Ed.)
48.46.070
(5)(a) Except as provided in this subsection, requirements used by a health maintenance organization in determining whether to provide coverage to a small employer
shall be applied uniformly among all small employers applying for coverage or receiving coverage from the carrier.
(b) A health maintenance organization shall not require a
minimum participation level greater than:
(i) One hundred percent of eligible employees working
for groups with three or less employees; and
(ii) Seventy-five percent of eligible employees working
for groups with more than three employees.
(c) In applying minimum participation requirements
with respect to a small employer, a small employer shall not
consider employees or dependents who have similar existing
coverage in determining whether the applicable percentage of
participation is met.
(d) A health maintenance organization may not increase
any requirement for minimum employee participation or
modify any requirement for minimum employer contribution
applicable to a small employer at any time after the small
employer has been accepted for coverage.
(6) A health maintenance organization must offer coverage to all eligible employees of a small employer and their
dependents. A health maintenance organization may not
offer coverage to only certain individuals or dependents in a
small employer group or to only part of the group. A health
maintenance organization may not modify a health plan with
respect to a small employer or any eligible employee or
dependent, through riders, endorsements or otherwise, to
restrict or exclude coverage or benefits for specific diseases,
medical conditions, or services otherwise covered by the
plan. [2004 c 244 § 9; 1995 c 265 § 18; 1990 c 187 § 4.]
Application—2004 c 244: See note following RCW 48.21.045.
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
Finding—Intent—Severability—1990 c 187: See notes following
RCW 48.21.045.
48.46.068
48.46.068 Requirements for plans offered to small
employers—Definitions. (1) A health maintenance organization may not offer any health benefit plan to any small
employer without complying with RCW 48.46.066(3).
(2) Employers purchasing health plans provided through
associations or through member-governed groups formed
specifically for the purpose of purchasing health care are not
small employers and are not subject to RCW 48.46.066(3).
(3) For purposes of this section, "health benefit plan,"
"health plan," and "small employer" mean the same as
defined in RCW 48.43.005. [2003 c 248 § 16; 1995 c 265 §
24.]
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
48.46.070
48.46.070 Governing body. (1) The members of the
governing body of a health maintenance organization shall be
nominated by the voting members or by the enrolled participants and providers, and shall be elected by the enrolled participants or voting members pursuant to the provisions of
their bylaws, which shall not be restricted to providers. At
least one-third of such body shall consist of consumers who
are substantially representative of the enrolled population of
[Title 48 RCW—page 309]
48.46.080
Title 48 RCW: Insurance
such organization: PROVIDED, HOWEVER, That any
organization that is a qualified health maintenance organization under P.L. 93-222 (Title XIII, section 1310(d) of the
public health services act) is deemed to have satisfied these
governing body requirements and the requirements of RCW
48.46.030(2).
(2) For health maintenance organizations formed by
public institutions of higher education or public hospital districts, the governing body shall be advised by an advisory
board consisting of at least two-thirds consumers who are
elected by the voting members or the enrolled participants
and are substantially representative of the enrolled population. [1985 c 320 § 3; 1983 c 106 § 5; 1975 1st ex.s. c 290 §
8.]
48.46.080 Annual statement—Filings—Contents—
Fee—Penalty for failure to file—Accuracy required. (1)
Every health maintenance organization shall annually, before
the first day of March, file with the commissioner a statement
verified by at least two of the principal officers of the health
maintenance organization showing its financial condition as
of the last day of the preceding calendar year.
(2) Such annual report shall be in such form as the commissioner shall prescribe and shall include:
(a) A financial statement of such organization, including
its balance sheet and receipts and disbursements for the preceding year, which reflects at a minimum;
(i) All prepayments and other payments received for
health care services rendered pursuant to health maintenance
agreements;
(ii) Expenditures to all categories of health care facilities, providers, insurance companies, or hospital or medical
service plan corporations with which such organization has
contracted to fulfill obligations to enrolled participants arising out of its health maintenance agreements, together with
all other direct expenses including depreciation, enrollment,
and commission; and
(iii) Expenditures for capital improvements, or additions
thereto, including but not limited to construction, renovation,
or purchase of facilities and capital equipment;
(b) The number of participants enrolled and terminated
during the report period. Every employer offering health care
benefits to their employees through a group contract with a
health maintenance organization shall furnish said health
maintenance organization with a list of their employees
enrolled under such plan;
(c) The number of doctors by type of practice who, under
contract with or as an employee of the health maintenance
organization, furnished health care services to consumers
during the past year;
(d) A report of the names and addresses of all officers,
directors, or trustees of the health maintenance organization
during the preceding year, and the amount of wages, expense
reimbursements, or other payments to such individuals for
services to such organization. For partnership and professional service corporations, a report shall be made for partners or shareholders as to any compensation or expense reimbursement received by them for services, other than for services and expenses relating directly for patient care;
(e) Such other information relating to the performance of
the health maintenance organization or the health care facili48.46.080
[Title 48 RCW—page 310]
ties or providers with which it has contracted as reasonably
necessary to the proper and effective administration of this
chapter, in accordance with rules and regulations; and
(f) Disclosure of any financial interests held by officers
and directors in any providers associated with the health
maintenance organization or any provider of the health maintenance organization.
(3) The commissioner may for good reason allow a reasonable extension of the time within which such annual statement shall be filed.
(4) In addition to the requirements of subsections (1) and
(2) of this section, every health maintenance organization that
is registered in this state shall annually, on or before March
1st of each year, file with the national association of insurance commissioners a copy of its annual statement, along
with those additional schedules as prescribed by the commissioner for the preceding year. The information filed with the
national association of insurance commissioners shall be in
the same format and scope as that required by the commissioner and shall include the signed jurate page and the actuarial certification. Any amendments and addendums to the
annual statement filing subsequently filed with the commissioner shall also be filed with the national association of
insurance commissioners.
(5) Coincident with the filing of its annual statement and
other schedules, each health maintenance organization shall
pay a reasonable fee directly to the national association of
insurance commissioners in an amount approved by the commissioner to cover the costs associated with the analysis of
the annual statement.
(6) Foreign health maintenance organizations that are
domiciled in a state that has a law substantially similar to subsection (4) of this section are considered to be in compliance
with this section.
(7) In the absence of actual malice, members of the
national association of insurance commissioners, their duly
authorized committees, subcommittees, and task forces, their
delegates, national association of insurance commissioners
employees, and all other persons charged with the responsibility of collecting, reviewing, analyzing, and dissimilating
the information developed from the filing of the annual statement shall be acting as agents of the commissioner under the
authority of this section and shall not be subject to civil liability for libel, slander, or any other cause of action by virtue of
their collection, review, analysis, or dissimilation of the data
and information collected for the filings required under this
section.
(8) The commissioner may suspend or revoke the certificate of registration of any health maintenance organization
failing to file its annual statement or pay the fees when due or
during any extension of time therefor which the commissioner, for good cause, may grant.
(9) No person shall knowingly file with any public official or knowingly make, publish, or disseminate any financial
statement of a health maintenance organization which does
not accurately state the health maintenance organization's
financial condition. [1997 c 212 § 5; 1993 c 492 § 296. Prior:
1983 c 202 § 10; 1983 c 106 § 6; 1975 1st ex.s. c 290 § 9.]
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
(2004 Ed.)
Health Maintenance Organizations
Short title—Severability—Savings—Captions not law—Reservation of legislative power—Effective dates—1993 c 492: See RCW
43.72.910 through 43.72.915.
48.46.090
48.46.090 Standard of services provided. A health
maintenance organization, and the health care facilities and
providers with which such organization has entered into contracts to provide health care services to its enrolled participants, shall provide such services in a manner consistent with
the dignity of each enrolled participant as a human being.
[1975 1st ex.s. c 290 § 10.]
48.46.100
48.46.100 Grievance procedure. A health maintenance organization shall establish and maintain a grievance
procedure, approved by the commissioner, to provide reasonable and effective resolution of complaints initiated by
enrolled participants concerning any matter relating to the
interpretation of any provision of such enrolled participants'
health maintenance contracts, including, but not limited to,
claims regarding the scope of coverage for health care services; denials, cancellations, or nonrenewals of enrolled participants' coverage; and the quality of the health care services
rendered, and which may include procedures for arbitration.
[1975 1st ex.s. c 290 § 11.]
48.46.110
48.46.110 Name restrictions—Discrimination—
Recovery of costs of health care services participant not
entitled to. (1) No health maintenance organization may
refer to itself in its name or advertising with any of the words:
"insurance", "casualty", "surety", "mutual", or any other
words descriptive of the insurance, casualty, or surety business, or deceptively similar to the name or description of any
insurance or surety corporation or health care service contractor or other health maintenance organization doing business in this state.
(2) No health maintenance organization, nor any health
care facility or provider with which such organization has
contracted to provide health care services, shall discriminate
against any person from whom or on whose behalf, payment
to meet the required charge is available, with regard to enrollment, disenrollment, or the provision of health care services,
on the basis of such person's race, color, sex, religion, place
of residence if there is reasonable access to the facility of the
health maintenance organization, socioeconomic status, or
status as a recipient of medicare under Title XVIII of the
Social Security Act, 42 U.S.C. section 1396, et seq.
(3) Where a health maintenance organization determines
that an enrolled participant has received health care services
to which such enrolled participant is not entitled under the
terms of his health maintenance agreement, neither such
organization, nor any health care facility or provider with
which such organization has contracted to provide health care
services, shall have recourse against such enrolled participant
for any amount above the actual cost of providing such service, if any, specified in such agreement, unless the enrolled
participant or a member of his family has given or withheld
information to the health maintenance organization, the
effect of which is to mislead or misinform the health maintenance organization as to the enrolled participant's right to
receive such services. [1983 c 202 § 11; 1975 1st ex.s. c 290
§ 12.]
(2004 Ed.)
48.46.130
48.46.120
48.46.120 Examination of health maintenance organizations—Duties of organizations, powers of commissioner—Independent audit reports—Assessment of organizations for costs, conditions. (1) The commissioner may
make an examination of the operations of any health maintenance organization as often as he deems necessary in order to
carry out the purposes of this chapter.
(2) Every health maintenance organization shall submit
its books and records relating its operation for financial condition and market conduct examinations and in every way
facilitate them. The quality or appropriateness of medical services or systems shall not be examined except to the extent
that such items are incidental to an examination of the financial condition or the market conduct of a health maintenance
organization. For the purpose of examinations, the commissioner may issue subpoenas, administer oaths, and examine
the officers and principals of the health maintenance organization and the principals of such providers concerning their
business.
(3) The commissioner may elect to accept and rely on
audit reports made by an independent certified public
accountant for the health maintenance organization in the
course of that part of the commissioner's examination covering the same general subject matter as the audit. The commissioner may incorporate the audit report in his report of the
examination.
(4) Health maintenance organizations licensed in the
state shall be equitably assessed to cover the cost of financial
condition and market conduct examinations, the costs of promulgating rules, and the costs of enforcing the provisions of
this chapter. The assessments shall be levied not less frequently than once every twelve months and shall be in an
amount expected to fund the examinations, promulgation of
rules, and enforcement of the provisions of this chapter,
including a reasonable margin for cost variations. The assessments shall be established by rules promulgated by the commissioner but shall not exceed five and one-half cents per
month per person entitled to health care services pursuant to
a health maintenance agreement, excluding such persons who
are not residents of this state: PROVIDED, That the minimum fee shall be one thousand dollars. Assessment receipts
shall be deposited in the insurance commissioner's regulatory
account in the state treasury; shall be used for the purpose of
funding the examinations authorized in subsection (1) of this
section, the costs of promulgating rules, and the costs of
enforcing the provisions of this chapter; and shall be
accounted for jointly with fees from health care service contractors but separately from insurers. Assessment receipts
received from health maintenance organizations shall be used
to pay a pro rata share of the costs, including overhead, of
regulating health care service contractors and health maintenance organizations. Amounts remaining in the separate
account at the end of a biennium shall be applied to reduce
the assessments in the succeeding biennium. [1987 c 83 § 1;
1986 c 296 § 9; 1985 c 7 § 115; 1983 c 63 § 2; 1975 1st ex.s.
c 290 § 13.]
Severability—Effective date—1986 c 296: See notes following RCW
48.14.020.
48.46.130
48.46.130 Investigation of violations—Hearing—
Findings—Penalties—Order requiring compliance,
[Title 48 RCW—page 311]
48.46.135
Title 48 RCW: Insurance
etc.—Suspension or revocation of certificate, effect—
Application to courts. (1) The commissioner may, consistent with the provisions of the administrative procedure act,
chapter 34.05 RCW, initiate proceedings to determine
whether a health maintenance organization has:
(a) Operated in a manner that materially violates its organizational documents;
(b) Materially breached its obligation to furnish the
health care services specified in its contracts with enrolled
participants;
(c) Violated any provision of this chapter, or any rules
and regulations promulgated thereunder;
(d) Made any false statement with respect to any report
or statement required by this chapter or by the commissioner
under this chapter;
(e) Advertised or marketed, or attempted to market, its
services in such a manner as to misrepresent its services or
capacity for services, or engaged in deceptive, misleading, or
unfair practices with respect to advertising or marketing;
(f) Prevented the commissioner from the performance of
any duty imposed by this chapter; or
(g) Fraudulently procured or attempted to procure any
benefit under this chapter.
(2) After providing written notice and an opportunity for
a hearing to be scheduled no sooner than ten days following
such notice, the commissioner shall make administrative
findings and may, as appropriate:
(a) Impose a penalty of not more than ten thousand dollars for each and every unlawful act committed which materially affects the health services offered or furnished;
(b) Issue an administrative order requiring the health
maintenance organization to:
(i) Cease or modify inappropriate conduct or practices by
it or any of the personnel employed or associated with it;
(ii) Fulfill its contractual obligations;
(iii) Provide a service which has been improperly denied;
(iv) Take steps to provide or arrange for any service
which it has agreed to make available; or
(v) Abide by the terms of an arbitration proceeding, if
any;
(c) Suspend or revoke the certificate of authority of the
health maintenance organization:
(i) If its certificate of authority is suspended, the organization shall not, during the period of such suspension, enroll
any additional participants except newborn children or other
newly acquired dependents of existing enrolled participants,
and shall not engage in any advertising or solicitation whatsoever;
(ii) If its certificate of authority is revoked, the organization shall proceed under the supervision of the commissioner
immediately following the effective date of the order of revocation to wind up its affairs, and shall conduct no further
business except as may be essential to the orderly conclusion
of such affairs: PROVIDED, That the commissioner may, by
written order, permit such further operation of the organization as it may find to be in the best interest of enrolled participants, to the end that such enrolled participants will be
afforded the greatest practical opportunity to obtain continuing health care coverage: PROVIDED, FURTHER, That if
the organization is qualified to operate as a health care ser[Title 48 RCW—page 312]
vice contractor under chapter 48.44 RCW, it may continue to
operate as such when it obtains the appropriate license.
(3) The commissioner may apply to any court for such
legal or equitable relief as it deems necessary to effectively
carry out the purposes of this chapter, including, but not limited to, an action in any court of competent jurisdiction to
enjoin any such acts or practices and to enforce compliance
with this chapter or any rule or order hereunder. Upon a
proper showing a permanent or temporary injunction,
restraining order, or writ of mandamus shall be granted and a
receiver or conservator may be appointed for the defendant or
the defendant's assets. The commissioner may not be
required to post a bond. [1975 1st ex.s. c 290 § 14.]
48.46.135
48.46.135 Fine in addition to or in lieu of suspension,
revocation, or refusal. After hearing or upon stipulation by
the registrant and in addition to or in lieu of the suspension,
revocation, or refusal to renew any registration of a health
maintenance organization, the commissioner may levy a fine
against the party involved for each offense in an amount not
less than fifty dollars and not more than ten thousand dollars.
The order levying such fine shall specify the period within
which the fine shall be fully paid and which period shall not
be less than fifteen nor more than thirty days from the date of
such order. Upon failure to pay any such fine when due the
commissioner shall revoke the registration of the registrant, if
not already revoked, and the fine shall be recovered in a civil
action brought on behalf of the commissioner by the attorney
general. Any fine so collected shall be paid by the commissioner to the state treasurer for the account of the general
fund. [1983 c 202 § 15.]
48.46.140
48.46.140 Fees. Every organization subject to this
chapter shall pay to the commissioner the following fees:
(1) For filing a copy of its application for a certificate of
registration or amendment thereto, one hundred dollars;
(2) For filing each annual report pursuant to RCW
48.46.080, ten dollars. [1975 1st ex.s. c 290 § 15.]
48.46.170
48.46.170 Effect of chapter as to other laws—Construction. (1) Solicitation of enrolled participants by a health
maintenance organization granted a certificate of registration,
or its agents or representatives, does not violate any provision
of law relating to solicitation or advertising by health professionals.
(2) Any health maintenance organization authorized
under this chapter is not violating any law prohibiting the
practice by unlicensed persons of podiatric medicine and surgery, chiropractic, dental hygiene, opticianry, dentistry,
optometry, osteopathic medicine and surgery, pharmacy,
medicine and surgery, physical therapy, nursing, or psychology. This subsection does not expand a health professional's
scope of practice or allow employees of a health maintenance
organization to practice as a health professional unless
licensed.
(3) This chapter does not alter any statutory obligation,
or rule adopted thereunder, in chapter 70.38 RCW.
(4) Any health maintenance organization receiving a certificate of registration pursuant to this chapter is exempt from
(2004 Ed.)
Health Maintenance Organizations
chapter 48.05 RCW. [2003 c 248 § 17; 1996 c 178 § 13; 1983
c 106 § 7; 1975 1st ex.s. c 290 § 18.]
48.46.235
hibit the commissioner from requiring changes in procedures
previously approved by him. [1975 1st ex.s. c 290 § 21.]
Effective date—1996 c 178: See note following RCW 18.35.110.
48.46.210
48.46.180
48.46.180 Duty of employer to inform and make
available to employees option of enrolling in health maintenance organization. (1) The state government, or any
political subdivision thereof, which offers its employees a
health benefits plan shall make available to and inform its
employees or members of the option to enroll in at least one
health maintenance organization holding a valid certificate of
authority which provides health care services in the geographic areas in which such employees or members reside.
(2) Each employer, public or private, having more than
fifty employees in this state which offers its employees a
health benefits plan, and each employee benefits fund in this
state having more than fifty members which offers its members any form of health benefits shall make available to and
inform its employees or members of the option to enroll in at
least one health maintenance organization holding a valid
certificate of authority which provides health care services in
the geographic areas in which a substantial number of such
employees or members reside: PROVIDED, That unless at
least twenty-five employees agree to participate in a health
maintenance organization the employer need not provide
such an option: PROVIDED FURTHER, That where such
employees are members of a bona fide bargaining unit covered by a labor-management collective bargaining agreement, the selection of the options required by this section
may be specified in such agreement: AND PROVIDED
FURTHER, That the provisions of this section shall not be
mandatory where such members are covered by a Taft-Hartley health care trust, except that the labor-management trustees may contract with a health maintenance organization if a
feasibility study determines it is to the advantage of the members to so contract.
(3) Subsections (1) and (2) of this section shall impose
no responsibilities or duties upon state government or any
political subdivision thereof or any other employer, either
public or private, to provide health maintenance organization
coverage when no health maintenance organization exists for
the purpose of providing health care services in the geographic areas in which the employees or members reside.
(4) No employer in this state shall in any way be required
to pay more for health benefits as a result of the application of
this section than would otherwise be required by any prevailing collective bargaining agreement or other legally enforceable contract of obligation for the provision of health benefits
between such employer and its employees. [1975 1st ex.s. c
290 § 19.]
48.46.190
48.46.190 Payroll deductions for capitation payments to health maintenance organizations. See RCW
41.04.233.
48.46.200
48.46.200 Rules and regulations. The commissioner
may, in accordance with the provisions of the administrative
procedure act, chapter 34.05 RCW, promulgate rules and regulations as necessary or proper to carry out the provisions of
this chapter. Nothing in this chapter shall be construed to pro(2004 Ed.)
48.46.210 Compliance with federal funding requirements—Construction. Nothing in this chapter shall prohibit
any health maintenance organization from meeting the
requirements of any federal law which would authorize such
health maintenance organization to receive federal financial
assistance or enroll beneficiaries assisted by federal funds.
[1975 1st ex.s. c 290 § 22.]
48.46.220
48.46.220 Review of administrative action. Any party
aggrieved by a decision, order, or regulation made under this
chapter by the commissioner shall have the right to have such
reviewed pursuant to the provisions of the administrative procedure act, chapter 34.05 RCW. [1975 1st ex.s. c 290 § 23.]
48.46.225
48.46.225 Financial failure—Supervision of commissioner—Priority of distribution of assets. (1) Any rehabilitation, liquidation, or conservation of a health maintenance
organization is the same as the rehabilitation, liquidation, or
conservation of an insurance company and must be conducted under the supervision of the commissioner pursuant to
the law governing the rehabilitation, liquidation, or conservation of insurance companies. The commissioner may apply
for an order directing the commissioner to rehabilitate, liquidate, or conserve a health maintenance organization upon any
one or more grounds set out in RCW 48.31.030, 48.31.050,
and 48.31.080. Enrolled participants have the same priority
in the event of liquidation or rehabilitation as the law provides to policyholders of an insurer.
(2) For purposes of determining the priority of distribution of general assets, claims of enrolled participants and
enrolled participants' beneficiaries have the same priority as
established by RCW 48.31.280 for policyholders and beneficiaries of insureds of insurance companies. If an enrolled
participant is liable to any provider for services provided pursuant to and covered by the health maintenance agreement,
that liability has the status of an enrolled participant claim for
distribution of general assets.
(3) A provider who is obligated by statute or agreement
to hold enrolled participants harmless from liability for services provided pursuant to and covered by a health care plan
has a priority of distribution of the general assets immediately following that of enrolled participants and enrolled participants' beneficiaries under this section. [2003 c 248 § 18;
1990 c 119 § 4.]
48.46.235
48.46.235 Minimum net worth—Requirement to
maintain—Determination of amount. (1) Except as provided in subsection (2) of this section, every health maintenance organization must have and maintain a minimum net
worth equal to the greater of:
(a) Three million dollars; or
(b) Two percent of annual premium earned as reported
on the most recent annual financial statement filed with the
commissioner on the first one hundred fifty million dollars of
premium and one percent of annual premium on the premium
in excess of one hundred fifty million dollars; or
[Title 48 RCW—page 313]
48.46.237
Title 48 RCW: Insurance
(c) An amount equal to the sum of three months' uncovered expenditures as reported on the most recent financial
statement filed with the commissioner.
(2) A health maintenance organization registered before
July 27, 1997, that, on July 27, 1997, has a minimum net
worth equal to or greater than that required by subsection (1)
of this section must continue to have and maintain the minimum net worth required by subsection (1) of this section. A
health maintenance organization registered before July 27,
1997, that, on July 27, 1997, does not have the minimum net
worth required by subsection (1) of this section must have
and maintain a minimum net worth of:
(a) The amount required immediately prior to July 27,
1997, until December 31, 1997;
(b) Fifty percent of the amount required by subsection
(1) of this section by December 31, 1997;
(c) Seventy-five percent of the amount required by subsection (1) of this section by December 31, 1998; and
(d) One hundred percent of the amount required by subsection (1) of this section by December 31, 1999.
(3)(a) In determining net worth, no debt shall be considered fully subordinated unless the subordination clause is in a
form acceptable to the commissioner. An interest obligation
relating to the repayment of a subordinated debt must be similarly subordinated.
(b) The interest expenses relating to the repayment of a
fully subordinated debt shall not be considered uncovered
expenditures.
(c) A subordinated debt incurred by a note meeting the
requirement of this section, and otherwise acceptable to the
commissioner, shall not be considered a liability and shall be
recorded as equity.
(4) Every health maintenance organization shall, when
determining liabilities, include an amount estimated in the
aggregate to provide for any unearned premium and for the
payment of all claims for health care expenditures that have
been incurred, whether reported or unreported, which are
unpaid and for which such organization is or may be liable,
and to provide for the expense of adjustment or settlement of
such claims.
Such liabilities shall be computed in accordance with
rules promulgated by the commissioner upon reasonable consideration of the ascertained experience and character of the
health maintenance organization. [1997 c 212 § 6; 1990 c
119 § 5.]
48.46.237
48.46.237 Minimum net worth—Domestic or foreign
health maintenance organization. (1) For purposes of this
section:
(a) "Domestic health maintenance organization" means a
health maintenance organization formed under the laws of
this state; and
(b) "Foreign health maintenance organization" means a
health maintenance organization formed under the laws of
the United States, of a state or territory of the United States
other than this state, or of the District of Columbia.
(2) If the minimum net worth of a domestic health maintenance organization falls below the minimum net worth
required by this chapter, the commissioner shall at once
ascertain the amount of the deficiency and serve notice upon
[Title 48 RCW—page 314]
the domestic health maintenance organization to cure the
deficiency within ninety days after that service of notice.
(3) If the deficiency is not cured, and proof thereof filed
with the commissioner within the ninety-day period, the
domestic health maintenance organization shall be declared
insolvent and shall be proceeded against as authorized by this
code or the commissioner shall, consistent with chapters
48.04 and 34.05 RCW, suspend or revoke the registration of
the domestic health maintenance organization as being hazardous to its subscribers and the people in this state.
(4) If the deficiency is not cured the domestic health
maintenance organization shall not issue or deliver any health
maintenance agreement after the expiration of the ninety-day
period.
(5) If the minimum net worth of a foreign health maintenance organization falls below the minimum net worth
required by this chapter, the commissioner shall, consistent
with chapters 48.04 and 34.05 RCW, suspend or revoke the
foreign health maintenance organization's registration as
being hazardous to its subscribers, enrollees, or the people in
this state. [1997 c 212 § 7.]
48.46.240
48.46.240 Funded reserve requirements. (1) Each
health maintenance organization obtaining a certificate of
registration from the commissioner shall provide and maintain a funded reserve of one hundred fifty thousand dollars.
The funded reserve shall be deposited with the commissioner
or with any organization/trustee acceptable to him in the form
of cash, securities eligible for investment by the health maintenance organization pursuant to chapter 48.13 RCW,
approved surety bond or any combination of these, and must
equal or exceed one hundred fifty thousand dollars. The
funded reserve shall be established as an assurance that the
uncovered expenditure obligations of the health maintenance
organization to the enrolled participants will be performed.
(2) All income from reserves on deposit with the commissioner shall belong to the depositing health maintenance
organization and shall be paid to it as it becomes available.
(3) Any funded reserve required by this section shall be
considered an asset of the health maintenance organization in
determining the organization's net worth.
(4) A health maintenance organization that has made a
securities deposit with the commissioner may, at its option,
withdraw the securities deposit or any part of the deposit after
first having deposited or provided in lieu thereof an approved
surety bond, a deposit of cash or securities, or any combination of these or other deposits of equal amount and value to
that withdrawn. Any securities and surety bond shall be subject to approval by the commissioner before being substituted. [1990 c 119 § 6; 1985 c 320 § 4; 1982 c 151 § 3.]
Effective date—1982 c 151: See note following RCW 48.46.020.
48.46.243
48.46.243 Contract—Participant liability—Commissioner's review. (1) Subject to subsection (2) of this section,
every contract between a health maintenance organization
and its participating providers of health care services shall be
in writing and shall set forth that in the event the health maintenance organization fails to pay for health care services as
set forth in the agreement, the enrolled participant shall not
be liable to the provider for any sums owed by the health
(2004 Ed.)
Health Maintenance Organizations
maintenance organization. Every such contract shall provide
that this requirement shall survive termination of the contract.
(2) The provisions of subsection (1) of this section shall
not apply to emergency care from a provider who is not a participating provider, to out-of-area services or, in exceptional
situations approved in advance by the commissioner, if the
health maintenance organization is unable to negotiate reasonable and cost-effective participating provider contracts.
(3)(a) Each participating provider contract form shall be
filed with the commissioner fifteen days before it is used.
(b) Any contract form not affirmatively disapproved
within fifteen days of filing shall be deemed approved, except
that the commissioner may extend the approval period an
additional fifteen days upon giving notice before the expiration of the initial fifteen-day period. The commissioner may
approve such a contract form for immediate use at any time.
Approval may be subsequently withdrawn for cause.
(c) Subject to the right of the health maintenance organization to demand and receive a hearing under chapters 48.04
and 34.05 RCW, the commissioner may disapprove such a
contract form if it is in any respect in violation of this chapter
or if it fails to conform to minimum provisions or standards
required by the commissioner by rule under chapter 34.05
RCW.
(4) No participating provider, or agent, trustee, or
assignee thereof, may maintain an action against an enrolled
participant to collect sums owed by the health maintenance
organization. [1990 c 119 § 7.]
48.46.245
48.46.245 Plan for handling insolvency—Commissioner's review. Each health maintenance organization shall
have a plan for handling insolvency which allows for continuation of benefits for the duration of the agreement period for
which premiums have been paid and continuation of benefits
to members who are confined on the date of insolvency in an
inpatient facility until their discharge or expiration of benefits. The commissioner shall approve such a plan if it
includes:
(1) Insurance to cover the expenses to be paid for continued benefits after insolvency;
(2) Provisions in provider contracts that obligate the provider to provide services for the duration of the period after
the health maintenance organization's insolvency for which
premium payment has been made and until the enrolled participants' discharge from inpatient facilities;
(3) Use of insolvency reserves established under RCW
48.46.240;
(4) Acceptable letters of credit or approved surety bonds;
or
(5) Any other arrangements the commissioner and the
organization mutually agree are appropriate to assure that
benefits are continued. [1990 c 119 § 8.]
48.46.247
48.46.247 Insolvency—Commissioner's duties—Participants' options—Allocation of coverage. (1)(a) In the
event of insolvency of a health care service contractor or
health maintenance organization and upon order of the commissioner, all other carriers then having active enrolled participants under a group plan with the affected agreement
holder that participated in the enrollment process with the
(2004 Ed.)
48.46.247
insolvent health care service contractor or health maintenance organization at a group's last regular enrollment period
shall offer the eligible enrolled participants of the insolvent
health services contractor or health maintenance organization
the opportunity to enroll in an existing group plan without
medical underwriting during a thirty-day open enrollment
period, commencing on the date of the insolvency. Eligible
enrolled participants shall not be subject to preexisting condition limitations except to the extent that a waiting period for
a preexisting condition has not been satisfied under the insolvent carrier's group plan. An open enrollment shall not be
required where the agreement holder participates in a selfinsured, self-funded, or other health plan exempt from commissioner rule, unless the plan administrator and agreement
holder voluntarily agree to offer a simultaneous open enrollment and extend coverage under the same enrollment terms
and conditions as are applicable to carriers under this title and
rules adopted under this title. If an exempt plan was offered
during the last regular open enrollment period, then the carrier may offer the agreement holder the same coverage as any
self-insured plan or plans offered by the agreement holder
without regard to coverage, benefit, or provider requirements
mandated by this title for the duration of the current agreement period.
(b) For purposes of this subsection only, the term "carrier" means a health maintenance organization or a health
care service contractor. In the event of insolvency of a carrier
and if no other carrier has active enrolled participants under a
group plan with the affected agreement holder, or if the commissioner determines that the other carriers lack sufficient
health care delivery resources to assure that health services
will be available or accessible to all of the group enrollees of
the insolvent carrier, then the commissioner shall allocate
equitably the insolvent carrier's group agreements for these
groups among all carriers that operate within a portion of the
insolvent carrier's area, taking into consideration the health
care delivery resources of each carrier. Each carrier to which
a group or groups are allocated shall offer the agreement
holder, without medical underwriting, the carrier's existing
coverage that is most similar to each group's coverage with
the insolvent carrier at rates determined in accordance with
the successor carrier's existing rating methodology. The eligible enrolled participants shall not be subject to preexisting
condition limitations except to the extent that a waiting
period for a preexisting condition has not been satisfied under
the insolvent carrier's group plan. No offering by a carrier
shall be required where the agreement holder participates in a
self-insured, self-funded, or other health plan exempt from
commissioner rule. The carrier may offer the agreement
holder the same coverage as any self-insured plan or plans
offered by the agreement holder without regard to coverage,
benefit, or provider requirements mandated by this title for
the duration of the current agreement period.
(2) The commissioner shall also allocate equitably the
insolvent carrier's nongroup enrolled participants who are
unable to obtain coverage among all carriers that operate
within a portion of the insolvent carrier's service area, taking
into consideration the health care delivery resources of the
carrier. Each carrier to which nongroup enrolled participants
are allocated shall offer the nongroup enrolled participants
the carrier's existing comprehensive conversion plan, without
[Title 48 RCW—page 315]
48.46.250
Title 48 RCW: Insurance
additional medical underwriting, at rates determined in
accordance with the successor carrier's existing rating methodology. The eligible enrolled participants shall not be subject to preexisting condition limitations except to the extent
that a waiting period for a preexisting condition has not been
satisfied under the insolvent carrier's plan.
(3) Any agreements covering participants allocated pursuant to subsections (1)(b) and (2) of this section to carriers
pursuant to this section may be rerated after ninety days of
coverage.
(4) A limited health care service contractor shall not be
required to offer services other than its one limited health
care service to any enrolled participant of an insolvent carrier. [1990 c 119 § 9.]
48.46.250
48.46.250 Coverage of dependent children—Newborn infants, congenital anomalies—Notification period.
(1) Any health maintenance agreement under this chapter
which provides coverage for dependent children of the
enrolled participant shall provide the same coverage for newborn infants of the enrolled participant from and after the
moment of birth. Coverage provided under this section shall
include, but not be limited to, coverage for congenital anomalies of such children from the moment of birth.
(2) If payment of an additional premium is required to
provide coverage for a child, the agreement may require that
notification of birth of a newly born child and payment of the
required premiums must be furnished to the health maintenance organization. The notification period shall be no less
than sixty days from the date of birth. This subsection applies
to agreements issued or renewed on or after January 1, 1984.
[1984 c 4 § 2; 1983 c 202 § 12.]
48.46.260
48.46.260 Individual health maintenance agreement—Return within ten days of delivery—Refunds—
Void from beginning. Every subscriber of an individual
health maintenance agreement may return the agreement to
the health maintenance organization or the agent through
whom it was purchased within ten days of its delivery to the
subscriber if, after examination of the agreement, the subscriber is not satisfied with it for any reason. The health maintenance organization shall refund promptly any fee paid for
the agreement. An additional ten percent penalty shall be
added to any premium refund due which is not paid within
thirty days of return of the policy to the health maintenance
organization or agent. Upon such return of the agreement, it
shall be void from the beginning and the parties shall be in the
same position as if no agreement had been issued. Notice of
the provisions of this section shall be printed on the face of
each such agreement or be attached thereto. [1983 c 202 §
13.]
48.46.270
48.46.270 Financial interests of health maintenance
organization authorities, restricted—Exceptions, regulations. (1) No person having any authority in the investment
or disposition of the funds of a health maintenance organization and no officer or director of a health maintenance organization shall accept, except for the health maintenance organization, or be the beneficiary of any fee, brokerage, gift,
commission, or other emolument because of any sale of
[Title 48 RCW—page 316]
health care service agreements or any investment, loan,
deposit, purchase, sale, payment, or exchange made by or for
the health maintenance organization, or be pecuniarily interested therein in any capacity; except, that such a person may
procure a loan from the health maintenance organization
directly upon approval by two-thirds of its directors and upon
the pledge of securities eligible for the investment of the
health maintenance organization's funds under this title.
(2) The commissioner may, by regulations, from time to
time, define and permit additional exceptions to the prohibition contained in subsection (1) of this section solely to
enable payment of reasonable compensation to a director
who is not otherwise an officer or employee of the health
maintenance organization, or to a corporation or firm in
which the director is interested, for necessary services performed or sales or purchases made to or for the health maintenance organization in the ordinary course of the health
maintenance organization's business and in the usual private
professional or business capacity of the director or the corporation or firm. [1985 c 320 § 5; 1983 c 202 § 14.]
48.46.272
48.46.272 Diabetes coverage—Definitions. The legislature finds that diabetes imposes a significant health risk and
tremendous financial burden on the citizens and government
of the state of Washington, and that access to the medically
accepted standards of care for diabetes, its treatment and supplies, and self-management training and education is crucial
to prevent or delay the short and long-term complications of
diabetes and its attendant costs.
(1) The definitions in this subsection apply throughout
this section unless the context clearly requires otherwise.
(a) "Person with diabetes" means a person diagnosed by
a health care provider as having insulin using diabetes, noninsulin using diabetes, or elevated blood glucose levels
induced by pregnancy; and
(b) "Health care provider" means a health care provider
as defined in RCW 48.43.005.
(2) All health benefit plans offered by health maintenance organizations, issued or renewed after January 1, 1998,
shall provide benefits for at least the following services and
supplies for persons with diabetes:
(a) For health benefit plans that include coverage for
pharmacy services, appropriate and medically necessary
equipment and supplies, as prescribed by a health care provider, that includes but is not limited to insulin, syringes,
injection aids, blood glucose monitors, test strips for blood
glucose monitors, visual reading and urine test strips, insulin
pumps and accessories to the pumps, insulin infusion
devices, prescriptive oral agents for controlling blood sugar
levels, foot care appliances for prevention of complications
associated with diabetes, and glucagon emergency kits; and
(b) For all health benefit plans, outpatient self-management training and education, including medical nutrition
therapy, as ordered by the health care provider. Diabetes outpatient self-management training and education may be provided only by health care providers with expertise in diabetes. Nothing in this section prevents the health maintenance
organization from restricting patients to seeing only health
care providers who have signed participating provider agreements with the health maintenance organization or an insur(2004 Ed.)
Health Maintenance Organizations
ing entity under contract with the health maintenance organization.
(3) Coverage required under this section may be subject
to customary cost-sharing provisions established for all other
similar services or supplies within a policy.
(4) Health care coverage may not be reduced or eliminated due to this section.
(5) Services required under this section shall be covered
when deemed medically necessary by the medical director, or
his or her designee, subject to any referral and formulary
requirements.
(6) The health maintenance organization need not
include the coverage required in this section in a group contract offered to an employer or other group that offers to its
eligible enrollees a self-insured health plan not subject to
mandated benefits status under this title that does not offer
coverage similar to that mandated under this section.
(7) This section does not apply to the health benefit plans
that provide benefits identical to the schedule of services covered by the basic health plan. [2004 c 244 § 14; 1997 c 276 §
5.]
Application—2004 c 244: See note following RCW 48.21.045.
Effective date—1997 c 276: See note following RCW 41.05.185.
48.46.275
48.46.275 Mammograms—Insurance coverage.
Each health maintenance agreement issued or renewed after
January 1, 1990, that provides benefits for hospital or medical care shall provide benefits for screening or diagnostic
mammography services, provided that such services are
delivered upon the recommendation of the patient's physician
or advanced registered nurse practitioner as authorized by the
nursing care quality assurance commission pursuant to chapter 18.79 RCW or physician assistant pursuant to chapter
18.71A RCW.
All services must be provided by the health maintenance
organization or rendered upon referral by the health maintenance organization. This section shall not be construed to
prevent the application of standard agreement provisions
applicable to other benefits such as deductible or copayment
provisions. This section does not limit the authority of a
health maintenance organization to negotiate rates and contract with specific providers for the delivery of mammography services. This section shall not apply to medicare supplement policies or supplemental contracts covering a specified
disease or other limited benefits. [1994 sp.s. c 9 § 735; 1989
c 338 § 4.]
Severability—Headings and captions not law—Effective date—
1994 sp.s. c 9: See RCW 18.79.900 through 18.79.902.
48.46.280
48.46.280 Reconstructive breast surgery. (1) Any
health care service plan issued, amended, or renewed after
July 24, 1983, shall provide coverage for reconstructive
breast surgery resulting from a mastectomy which resulted
from disease, illness, or injury.
(2) Any health care service plan issued, amended, or
renewed after January 1, 1986, shall provide coverage for all
stages of one reconstructive breast reduction on the nondiseased breast to make it equal in size with the diseased breast
after definitive reconstructive surgery on the diseased breast
has been performed. [1985 c 54 § 8; 1983 c 113 § 4.]
(2004 Ed.)
48.46.290
Effective date—1985 c 54: See note following RCW 48.20.397.
48.46.285
48.46.285 Mastectomy, lumpectomy. No health maintenance organization under this chapter may refuse coverage
or cancel or decline coverage solely because of a mastectomy
or lumpectomy performed on the insured or prospective
insured more than five years previously. The amount of benefits payable, or any term, rate, condition, or type of coverage
shall not be restricted, modified, excluded, increased, or
reduced solely on the basis of a mastectomy or lumpectomy
performed on the insured or prospective insured more than
five years previously. [1985 c 54 § 4.]
Effective date—1985 c 54: See note following RCW 48.20.397.
48.46.290
48.46.290 Mental health treatment, optional supplemental coverage—Waiver. (1) Each health maintenance
organization providing services or benefits for hospital or
medical care coverage in this state under group health maintenance agreements which are issued, delivered, or renewed
in this state on or after July 1, 1986, shall offer optional supplemental coverage for mental health treatment to the
enrolled participant and the enrolled participant's covered
dependents.
(2) Benefits shall be provided under the optional supplemental coverage for mental health treatment whether treatment is rendered by the health maintenance organization or
the health maintenance organization refers the enrolled participant or the enrolled participant's covered dependents for
treatment to: (a) A physician licensed under chapter 18.71 or
18.57 RCW; (b) a psychologist licensed under chapter 18.83
RCW; (c) a community mental health agency licensed by the
department of social and health services pursuant to chapter
71.24 RCW; or (d) a state hospital as defined in RCW
72.23.010. The treatment shall be covered at the usual and
customary rates for such treatment. The insurer, health care
service contractor, or health maintenance organization providing optional coverage under the provisions of this section
for mental health services may establish separate usual and
customary rates for services rendered by physicians licensed
under chapter 18.71 or 18.57 RCW, psychologists licensed
under chapter 18.83 RCW, and community mental health
centers licensed under chapter 71.24 RCW and state hospitals
as defined in RCW 72.23.010. However, the treatment may
be subject to contract provisions with respect to reasonable
deductible amounts or copayments. In order to qualify for
coverage under this section, a licensed community mental
health agency shall have in effect a plan for quality assurance
and peer review, and the treatment shall be supervised by a
physician licensed under chapter 18.71 or 18.57 RCW or by
a psychologist licensed under chapter 18.83 RCW.
(3) The group health maintenance agreement may provide that all the coverage for mental health treatment is
waived for all covered members if the contract holder so
states in advance in writing to the health maintenance organization.
(4) This section shall not apply to a group health maintenance agreement that has been entered into in accordance
with a collective bargaining agreement between management
and labor representatives prior to March 1, 1987. [1987 c 283
§ 5; 1986 c 184 § 4; 1983 c 35 § 3.]
[Title 48 RCW—page 317]
48.46.292
Title 48 RCW: Insurance
Severability—Savings—1987 c 283: See notes following RCW
43.20A.020.
Legislative intent—Effective date—Severability—1986 c 184: See
notes following RCW 48.21.240.
Effective date—Severability—1983 c 35: See notes following RCW
48.21.240.
48.46.292
48.46.292 Mental health treatment—Waiver of preauthorization for persons involuntarily committed. A
health maintenance organization providing services or benefits for hospital or medical care coverage in this state shall
waive a preauthorization from the health maintenance organization before an enrolled participant or the enrolled participant's covered dependents receive mental health treatment
rendered by a state hospital as defined in RCW 72.23.010 if
the enrolled participant or the enrolled participant's covered
dependents are involuntarily committed to a state hospital as
defined in RCW 72.23.010. [1993 c 272 § 5.]
Savings—Severability—1993 c 272: See notes following RCW
43.20B.347.
48.46.300
48.46.300 Future dividends or refunds, restricted—
Issuance or sale of securities regulated. (1) No health
maintenance organization nor any individual acting in behalf
thereof may guarantee or agree to the payment of future dividends or future refunds of unused charges or savings in any
specific or approximate amounts or percentages in respect to
any contract being offered to the public, except in a group
contract containing an experience refund provision.
(2) The issuance, sale, or offer for sale in this state of
securities of its own issue by any health maintenance organization domiciled in this state other than the memberships and
bonds of a nonprofit corporation are subject to the provisions
of chapter 48.06 RCW relating to obtaining solicitation permits. [1983 c 106 § 8.]
48.46.310
48.46.310 Registration not endorsement. The granting of a certificate of registration to a health maintenance
organization is permissive only, and does not constitute an
endorsement by the insurance commissioner of any person or
thing related to the health maintenance organization, and no
person may advertise or display a certificate of registration
for use as an inducement in any solicitation. [1983 c 106 § 9.]
48.46.340
48.46.340 Return of agreement within ten days.
Every subscriber of an individual health maintenance agreement may return the agreement to the health maintenance
organization or the agent through whom it was purchased
within ten days of its delivery to the subscriber if, after examination of the agreement, the subscriber is not satisfied with it
for any reason. The health maintenance organization shall
refund promptly any fee paid for the agreement. Upon such
return of the agreement, it shall be void from the beginning
and the parties shall be in the same position as if no agreement had been issued. Notice of the substance of this section
shall be printed on the face of each such agreement or be
attached thereto. [1983 c 106 § 12.]
48.46.350
48.46.350 Chemical dependency treatment. Each
group agreement for health care services that is delivered or
issued for delivery or renewed on or after January 1, 1988,
must contain provisions providing benefits for the treatment
of chemical dependency rendered to covered persons by a
provider which is an "approved treatment program" under
RCW 70.96A.020(3). However, this section does not apply
to any agreement written as supplemental coverage to any
federal or state programs of health care including, but not
limited to, Title XVIII health insurance for the aged, which is
commonly referred to as Medicare, Parts A&B, and amendments thereto. Treatment must be covered under the chemical dependency coverage if treatment is rendered by the
health maintenance organization or if the health maintenance
organization refers the enrolled participant or the enrolled
participant's dependents to a physician licensed under chapter
18.57 or 18.71 RCW, or to a qualified counselor employed by
an approved treatment program described in RCW
70.96A.020(3). In all cases, a health maintenance organization retains the right to diagnose the presence of chemical
dependency and select the modality of treatment that best
serves the interest of the health maintenance organization's
enrolled participant, or the enrolled participant's covered
dependent. [2003 c 248 § 19; 1990 1st ex.s. c 3 § 14; 1987 c
458 § 18; 1983 c 106 § 13.]
Effective date—Severability—1987 c 458: See notes following RCW
48.21.160.
Chemical dependency benefits, rules: RCW 48.21.197.
48.46.320
48.46.320 Dependent children, termination of coverage, conditions. Any health maintenance agreement which
provides that coverage of a dependent child shall terminate
upon attainment of the limiting age for dependent children
specified in the agreement shall also provide in substance that
attainment of such limiting age shall not operate to terminate
the coverage of such child while the child is and continues to
be both: (1) Incapable of self-sustaining employment by reason of developmental disability or physical handicap; and (2)
chiefly dependent upon the subscriber for support and maintenance, if proof of such incapacity and dependency is furnished to the health maintenance organization by the enrolled
participant within thirty-one days of the child's attainment of
the limiting age and subsequently as required by the health
maintenance organization but not more frequently than annually after the two-year period following the child's attainment
of the limiting age. [1985 c 320 § 6; 1983 c 106 § 10.]
[Title 48 RCW—page 318]
48.46.355
48.46.355 "Chemical dependency" defined. For the
purposes of RCW 48.46.350, "chemical dependency" means
an illness characterized by a physiological of psychological
dependency, or both, on a controlled substance regulated
under chapter 69.50 RCW and/or alcoholic beverages. It is
further characterized by a frequent or intense pattern of
pathological use to the extent the user exhibits a loss of selfcontrol over the amount and circumstances of use; develops
symptoms of tolerance or physiological and/or psychological
withdrawal if use of the controlled substance or alcoholic
beverage is reduced or discontinued; and the user's health is
substantially impaired or endangered or his or her social or
economic function is substantially disrupted. [1987 c 458 §
19.]
Effective date—Severability—1987 c 458: See notes following RCW
48.21.160.
(2004 Ed.)
Health Maintenance Organizations
48.46.360
48.46.360 Payment of cost of agreement directly to
holder during labor dispute—Changes restricted—
Notice to employee. Any employee whose compensation
includes a health maintenance agreement, the cost of which is
paid in full or in part by an employer including the state of
Washington, its political subdivisions, or municipal corporations, or paid by payroll deduction, may pay the cost as it
becomes due directly to the agreement holder whenever the
employee's compensation is suspended or terminated directly
or indirectly as a result of a strike, lockout, or other labor dispute, for a period not exceeding six months and at the rate and
coverages as the health maintenance agreement provides.
During that period of time, such agreement may not be
altered or changed. Nothing in this section impairs the right
of the health maintenance organization to make normal
decreases or increases in the cost of the health maintenance
agreement upon expiration and renewal of the agreement, in
accordance with the agreement. Thereafter, if such health
maintenance agreement is no longer available, the employee
shall be given the opportunity to convert as specified in RCW
48.46.450 and 48.46.460. When the employee's compensation is so suspended or terminated, the employee shall be
notified immediately by the agreement holder in writing, by
mail addressed to the address last of record with the agreement holder, that the employee may pay the cost of the health
maintenance agreement to the agreement holder as it
becomes due as provided in this section. Payment must be
made when due or the coverage may be terminated by the
health maintenance organization. [1985 c 7 § 116; 1983 c
106 § 14.]
48.46.370
48.46.370 Coverage not denied for handicap. No
health maintenance organization may deny coverage to a person solely on account of the presence of any sensory, mental,
or physical handicap. Nothing in this section may be construed as limiting a health maintenance organization's authority to deny or otherwise limit coverage to a person when the
person because of a medical condition does not meet the
essential eligibility requirements established by the health
maintenance organization for purposes of determining coverage for any person. [1983 c 106 § 15.]
48.46.420
Prenatal testing—Limitation on changes to coverage: RCW 48.42.090.
48.46.380
48.46.380 Notice of reason for cancellation, denial, or
refusal to renew agreement. Every authorized health maintenance organization, upon canceling, denying, or refusing to
renew any individual health maintenance agreement, shall,
upon written request, directly notify in writing the applicant
or enrolled participant as appropriate, of the reasons for the
action by the health maintenance organization. Any benefits,
terms, rates, or conditions of such agreement which are
restricted, excluded, modified, increased, or reduced shall,
upon written request, be set forth in writing and supplied to
the individual. The written communications required by this
section shall be phrased in simple language which is readily
understandable to a person of average intelligence, education,
and reading ability. [1993 c 492 § 291; 1983 c 106 § 16.]
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
Short title—Severability—Savings—Captions not law—Reservation of legislative power—Effective dates—1993 c 492: See RCW
43.72.910 through 43.72.915.
48.46.390
48.46.390 Providing information on cancellation or
refusal—No liability for insurance commissioner or
health maintenance organization. With respect to the provisions of health maintenance agreements as set forth in
RCW 48.46.380, there shall be no liability on the part of, and
no cause of action of any nature shall arise against, the insurance commissioner, the commissioner's agents, or members
of the commissioner's staff, or against any health maintenance organization, its authorized representative, its agents,
its employees, for providing to the health maintenance organization information as to reasons for cancellation or refusal
to issue or renew, for libel or slander on the basis of any statement made by any of them in any written notice of cancellation or refusal to issue or renew, or in any other communications, oral or written, specifying the reasons for cancellation
or refusal to issue or renew or the providing of information
pertaining thereto, or for statements made or evidence submitted in any hearing conducted in connection therewith.
[1983 c 106 § 17.]
48.46.400
48.46.375
48.46.375 Benefits for prenatal diagnosis of congenital disorders—Agreements entered into or renewed on or
after January 1, 1990. On or after January 1, 1990, every
group health maintenance agreement entered into or renewed
that covers hospital, medical, or surgical expenses and which
provides benefits for pregnancy, childbirth, or related medical conditions to enrollees of such groups, shall offer benefits
for prenatal diagnosis of congenital disorders of the fetus by
means of screening and diagnostic procedures during pregnancy to such enrollees when those services are determined
to be medically necessary by the health maintenance organization in accord with standards set in rule by the board of
health: PROVIDED, That such procedures shall be covered
only if rendered directly by the health maintenance organization or upon referral by the health maintenance organization.
Every group health maintenance organization shall communicate the availability of such coverage to all groups covered
and to all groups with whom they are negotiating. [1988 c
276 § 8.]
(2004 Ed.)
48.46.400 False or misleading advertising prohibited.
No person may knowingly make, publish, or disseminate any
false, deceptive, or misleading representation or advertising
in the conduct of the business of a health maintenance organization, or relative to the business of a health maintenance
organization or to any person engaged therein. [1983 c 106 §
18.]
48.46.410
48.46.410 Misrepresentations to induce termination
or retention of agreement prohibited. No health maintenance organization nor any person representing a health
maintenance organization may by misrepresentation or misleading comparisons induce or attempt to induce any member
of a health maintenance organization to terminate or retain an
agreement or membership in the organization. [1983 c 106 §
19.]
48.46.420
48.46.420 Penalty for violations. (1) Except as otherwise provided in this chapter, any health maintenance organi[Title 48 RCW—page 319]
48.46.430
Title 48 RCW: Insurance
zation which, or person who, violates any provision of this
chapter is guilty of a gross misdemeanor.
(2) A health maintenance organization that fails to comply with the net worth requirements of this chapter must cure
that defect in compliance with an order of the commissioner
rendered in conformity with rules adopted pursuant to chapter 34.05 RCW. The commissioner is authorized to take
appropriate action to assure that the continued operation of
the health maintenance organization will not be hazardous to
its enrolled participants. [2003 c 250 § 12; 1990 c 119 § 10;
1983 c 106 § 20.]
Severability—2003 c 250: See note following RCW 48.01.080.
48.46.430 Enforcement authority of commissioner.
For the purposes of this chapter, the insurance commissioner
shall have the same powers and duties of enforcement as are
provided in RCW 48.02.080. [1983 c 106 § 21.]
48.46.430
48.46.440 Continuation option to be offered. Every
health maintenance organization that issues agreements providing group coverage for hospital or medical care shall offer
the agreement holder an option to include an agreement provision granting a person who becomes ineligible for coverage
under the group agreement, the right to continue the group
benefits for a period of time and at a rate agreed upon. The
agreement provision shall provide that when such coverage
terminates the covered person may convert to an agreement
as provided in RCW 48.46.450. [1984 c 190 § 8.]
48.46.440
Legislative intent—Severability—1984 c 190: See notes following
RCW 48.21.250.
Application—1984 c 190 §§ 2, 5, and 8: See note following RCW
48.21.250.
48.46.450 Conversion agreement to be offered—
Exceptions, conditions. (1) Except as otherwise provided
by this section, any group health maintenance agreement
entered into or renewed on or after January 1, 1985, that provides benefits for hospital or medical care shall contain a provision granting a person covered by the group agreement the
right to obtain a conversion agreement from the health maintenance organization upon termination of the person's eligibility for coverage under the group agreement.
(2) A health maintenance organization need not offer a
conversion agreement to:
(a) A person whose coverage under the group agreement
ended when the person's employment or membership was terminated for misconduct: PROVIDED, That when a person's
employment or membership is terminated for misconduct, a
conversion policy shall be offered to the spouse and/or
dependents of the terminated employee or member. The policy shall include in the conversion provisions the same conversion rights and conditions which are available to employees or members and their spouses and/or dependents who are
terminated for reasons other than misconduct;
(b) A person who is eligible for federal Medicare coverage; or
(c) A person who is covered under another group plan,
policy, contract, or agreement providing benefits for hospital
or medical care.
(3) To obtain the conversion agreement, a person must
submit a written application and the first premium payment
48.46.450
[Title 48 RCW—page 320]
for the conversion agreement not later than thirty-one days
after the date the person's eligibility for group coverage terminates. The conversion agreement shall become effective
without lapse of coverage, immediately following termination of coverage under the group agreement.
(4) If a health maintenance organization or group agreement holder does not renew, cancels, or otherwise terminates
the group agreement, the health maintenance organization
shall offer a conversion agreement to any person who was
covered under the terminated agreement unless the person is
eligible to obtain group benefits for hospital or medical care
within thirty-one days after such nonrenewal, cancellation, or
termination of the group agreement.
(5) The health maintenance organization shall determine
the premium for the conversion agreement in accordance
with the organization's table of premium rates applicable to
the age and class of risk of each person to be covered under
the agreement and the type and amount of benefits provided.
[1984 c 190 § 9.]
Legislative intent—Severability—1984 c 190: See notes following
RCW 48.21.250.
48.46.460 Conversion agreement—Restrictions and
requirements. (1) A health maintenance organization must
offer a conversion agreement for comprehensive health care
services and shall not require proof of insurability as a condition for issuance of the conversion agreement.
(2) A conversion agreement may not contain an exclusion for preexisting conditions except to the extent that a
waiting period for a preexisting condition has not been satisfied under the group agreement.
(3) A conversion agreement need not provide benefits
identical to those provided under the group agreement. The
conversion agreement may contain provisions requiring the
person covered by the conversion agreement to pay reasonable deductibles and copayments.
(4) The insurance commissioner shall adopt rules to
establish minimum benefit standards for conversion agreements.
(5) The commissioner shall adopt rules to establish specific standards for conversion agreement provisions. These
rules may include but are not limited to:
(a) Terms of renewability;
(b) Nonduplication of coverage;
(c) Benefit limitations, exceptions, and reductions; and
(d) Definitions of terms. [1984 c 190 § 10.]
48.46.460
Legislative intent—Severability—1984 c 190: See notes following
RCW 48.21.250.
48.46.470 Endorsement of modifications. If an individual health care service agreement is issued on any basis
other than as applied for, an endorsement setting forth such
modification must accompany and be attached to the agreement. No agreement shall be effective unless the endorsement is signed by the applicant, and a signed copy thereof
returned to the health maintenance organization. [1985 c 320
§ 7.]
48.46.470
48.46.480 Continuation of coverage of former family
members. Every health care service agreement issued,
amended, or renewed after January 1, 1986, for an individual
48.46.480
(2004 Ed.)
Health Maintenance Organizations
and his or her dependents shall contain provisions to assure
that the covered spouse and/or dependents, in the event that
any cease to be a qualified family member by reason of termination of marriage or death of the principal enrollee, shall
have the right to continue the health maintenance agreement
without a physical examination, statement of health, or other
proof of insurability. [1985 c 320 § 8.]
48.46.530
tor or his or her designee of the health maintenance organization and if provided by the health maintenance organization
or upon the health maintenance organization's referral. Formulas shall be covered at the usual and customary rates for
such formulas, subject to contract provisions with respect to
deductible amounts or co-payments. [1988 c 173 § 4.]
48.46.520
48.46.490
48.46.490 Coverage for adopted children. (1) Any
health maintenance agreement under this chapter which provides coverage for dependent children, as defined in the
agreement of the enrolled participant, shall cover adoptive
children placed with the enrolled participant on the same
basis as other dependents, as provided in RCW 48.01.180.
(2) If payment of an additional premium is required to
provide coverage for a child, the agreement may require that
notification of placement of a child for adoption and payment
of the required premium must be furnished to the health
maintenance organization. The notification period shall be no
less than sixty days from the date of placement. [1986 c 140
§ 5.]
Effective date, application—Severability—1986 c 140: See notes following RCW 48.01.180.
48.46.500
48.46.500 Cancellation of rider. Upon application by
an enrollee, a rider shall be canceled if at least five years after
its issuance, no health care services have been received by the
enrollee during that time for the condition specified in the
rider, and a physician, selected by the carrier for that purpose,
agrees in writing to the full medical recovery of the enrollee
from that condition, such agreement not to be unreasonably
withheld. The option of the enrollee to apply for cancellation
shall be disclosed on the face of the rider in clear and conspicuous language.
For purposes of this section, a rider is a legal document
that modifies a contract to exclude, limit, or reduce coverage
or benefits for specifically named or described preexisting
diseases or physical conditions. [1987 c 37 § 4.]
48.46.510
48.46.510 Phenylketonuria. (1) The legislature finds
that:
(a) Phenylketonuria is a rare inherited genetic disorder.
(b) Children with phenylketonuria are unable to metabolize an essential amino acid, phenylalanine, which is found in
the proteins of most food.
(c) To remain healthy, children with phenylketonuria
must maintain a strict diet and ingest a mineral and vitaminenriched formula.
(d) Children who do not maintain their diets with the formula acquire severe mental and physical difficulties.
(e) Originally, the formulas were listed as prescription
drugs but were reclassified as medical foods to increase their
availability.
(2) Subject to requirements and exceptions which may
be established by rules adopted by the commissioner, any
agreement for health care services delivered or issued for
delivery or renewed in this state on or after September 1,
1988, shall provide coverage for the formulas necessary for
the treatment of phenylketonuria. Such formulas shall be covered when deemed medically necessary by the medical direc(2004 Ed.)
4 8. 4 6 . 5 2 0 Neu r od e v e lo p men t al t he r a p ie s —
Employer-sponsored group contracts. (1) Each employersponsored group contract for comprehensive health care service which is entered into, or renewed, on or after twelve
months after July 23, 1989, shall include coverage for neurodevelopmental therapies for covered individuals age six
and under.
(2) Benefits provided under this section shall cover the
services of those authorized to deliver occupational therapy,
speech therapy, and physical therapy. Covered benefits and
treatment must be rendered or referred by the health maintenance organization, and delivered pursuant to the referral and
periodic review of a holder of a license issued pursuant to
chapter 18.71 or 18.57 RCW or where treatment is rendered
by such licensee. Nothing in this section shall prohibit a
health maintenance organization from negotiating rates with
qualified providers.
(3) Benefits provided under this section shall be for medically necessary services as determined by the health maintenance organization. Benefits shall be provided for the maintenance of a covered enrollee in cases where significant deterioration in the patient's condition would result without the
service. Benefits shall be provided to restore and improve
function.
(4) It is the intent of this section that employers purchasing comprehensive group coverage including the benefits
required by this section, together with the health maintenance
organization, retain authority to design and employ utilization and cost controls. Therefore, benefits provided under this
section may be subject to contractual provisions regarding
deductible amounts and/or copayments established by the
employer purchasing coverage and the health maintenance
organization. Benefits provided under this section may be
subject to standard waiting periods for preexisting conditions, and may be subject to the submission of written treatment plans.
(5) In recognition of the intent expressed in subsection
(4) of this section, benefits provided under this section may
be subject to contractual provisions establishing annual
and/or lifetime benefit limits. Such limits may define the total
dollar benefits available, or may limit the number of services
delivered as agreed by the employer purchasing coverage and
the health maintenance organization. [1989 c 345 § 3.]
48.46.530
48.46.530 Temporomandibular joint disorders—
Insurance coverage. (1) Except as provided in this section,
a health maintenance agreement entered into or renewed after
December 31, 1989, shall offer optional coverage for the
treatment of temporomandibular joint disorders.
(a) Health maintenance organizations offering medical
coverage only may limit benefits in such coverages to medical services related to treatment of temporomandibular joint
disorders. No health maintenance organizations offering
[Title 48 RCW—page 321]
48.46.535
Title 48 RCW: Insurance
medical and dental coverage may limit benefits in such coverage to dental services related to treatment of temporomandibular joint disorders. No health maintenance organization
offering medical coverage only may define all temporomandibular joint disorders as purely dental in nature.
(b) Health maintenance organizations offering optional
temporomandibular joint disorder coverage as provided in
this section may, but are not required to, offer lesser or no
temporomandibular joint disorder coverage as part of their
basic group disability contract.
(c) Benefits and coverage offered under this section may
be subject to negotiation to promote broad flexibility in
potential benefit coverage. This flexibility shall apply to services to be reimbursed, determination of treatments to be
considered medically necessary, systems through which services are to be provided, including referral systems and use of
other providers, and related issues.
(2) Unless otherwise directed by law, the insurance commissioner shall adopt rules, to be implemented on January 1,
1993, establishing minimum benefits, terms, definitions, conditions, limitations, and provisions for the use of reasonable
deductibles and copayments.
(3) A health maintenance organization need not make the
offer of coverage required by this section to an employer or
other group that offers to its eligible enrollees a self-insured
health plan not subject to mandated benefit statutes under
Title 48 RCW that does not provide coverage for temporomandibular joint disorders. [1989 c 331 § 4.]
Legislative finding—Effective date—1989 c 331: See notes following
RCW 48.21.320.
48.46.535
48.46.535 Prescriptions—Preapproval of individual
claims—Subsequent rejection prohibited—Written
record required. Health maintenance organizations who
through an authorized representative have first approved, by
any means, an individual prescription claim as eligible may
not reject that claim at some later date. Pharmacists or drug
dispensing outlets who obtain preapproval of claims shall
keep a written record of the preapproval that consists of identification by name and telephone number of the person who
approved the claim. [1993 c 253 § 5.]
Findings—Effective date—1993 c 253: See notes following RCW
48.20.525.
48.46.540
48.46.540 Nonresident pharmacies. For the purposes
of this chapter, a nonresident pharmacy is defined as any
pharmacy located outside this state that ships, mails, or delivers, in any manner, except when delivered in person to an
enrolled participant or his/her representative, controlled substances, legend drugs, or devices into this state.
After October 1, 1991, a health maintenance organization providing coverage of prescription drugs from nonresident pharmacies may only provide coverage from licensed
nonresident pharmacies. The health maintenance organizations shall obtain proof of current licensure in conformity
with this section and RCW 18.64.350 through 18.64.400
from the nonresident pharmacy and keep that proof of licensure on file.
The department may request from the health maintenance organization the proof of current licensure for all nonresident pharmacies through which the insurer is providing
[Title 48 RCW—page 322]
coverage for prescription drugs for residents of the state of
Washington. This information, which may constitute a full or
partial customer list, shall be confidential and exempt from
public disclosure, and from the requirements of chapter 42.17
RCW. The board or the department shall not be restricted in
the disclosure of the name of a nonresident pharmacy that is
or has been licensed under RCW 18.64.360 or 18.64.370 or
of the identity of a nonresident pharmacy disciplined under
RCW 18.64.350 through 18.64.400. [1991 c 87 § 10.]
Effective date—1991 c 87: See note following RCW 18.64.350.
48.46.565
48.46.565 Foot care services. Except to the extent that
a health maintenance organization contracts with a group
medical practice which only treats that organization's
patients, a health maintenance organization may not discriminate in the terms and conditions, including reimbursement,
for the provision of foot care services between physicians and
surgeons licensed under chapters 18.22, 18.57, and 18.71
RCW. [1999 c 64 § 1.]
Intent—1999 c 64: "This act is intended to be procedural and not to
impair the obligation of any existing contract." [1999 c 64 § 2.]
Severability—1999 c 64: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1999 c 64 § 3.]
48.46.570
48.46.570 Denturist services. Notwithstanding any
provision of any health maintenance organization agreement
covering dental care as provided for in this chapter, effective
January 1, 1995, benefits shall not be denied thereunder for
any service performed by a denturist licensed under chapter
18.30 RCW if (1) the service performed was within the lawful scope of such person's license, and (2) such agreement
would have provided benefits if such service had been performed by a dentist licensed under chapter 18.32 RCW.
[1995 c 1 § 25 (Initiative Measure No. 607, approved
November 8, 1994).]
Short title—Severability—1995 c 1 (Initiative Measure No. 607):
See RCW 18.30.900 and 18.30.901.
48.46.575
48.46.575 Doctor of osteopathic medicine and surgery—Discrimination based on board certification is prohibited. A health maintenance organization that provides
health care services to the general public may not discriminate against a qualified doctor of osteopathic medicine and
surgery licensed under chapter 18.57 RCW, who has applied
to practice with the health maintenance organization, solely
because that practitioner was board certified or eligible under
an approved osteopathic certifying board instead of board
certified or eligible respectively under an approved medical
certifying board. [1995 c 64 § 1.]
48.46.580
48.46.580 When injury caused by intoxication or use
of narcotics. A health maintenance organization may not
deny coverage for the treatment of an injury solely because
the injury was sustained as a consequence of the enrolled participant's being intoxicated or under the influence of a narcotic. [2004 c 112 § 5.]
Finding—Application—2004 c 112: See notes following RCW
48.20.385.
(2004 Ed.)
Health Maintenance Organizations
48.46.600
48.46.600 Disclosure of certain material transactions—Report—Information is confidential. (1) Every
health maintenance organization domiciled in this state shall
file a report with the commissioner disclosing material acquisitions and dispositions of assets or material nonrenewals,
cancellations, or revisions of ceded reinsurance agreements
unless these acquisitions and dispositions of assets or material nonrenewals, cancellations, or revisions of ceded reinsurance agreements have been submitted to the commissioner
for review, approval, or information purposes under other
provisions of this title or other requirements.
(2) The report required in subsection (1) of this section is
due within fifteen days after the end of the calendar month in
which any of the transactions occur.
(3) One complete copy of the report, including any
exhibits or other attachments filed as part of the report, shall
be filed with the:
(a) Commissioner; and
(b) National association of insurance commissioners.
(4) All reports obtained by or disclosed to the commissioner under this section and RCW 48.46.605 through
48.46.625 are exempt from public inspection and copying
and shall not be subject to subpoena. These reports shall not
be made public by the commissioner, the national association
of insurance commissioners, or any other person, except to
insurance departments of other states, without the prior written consent of the health maintenance organization to which
it pertains unless the commissioner, after giving the health
maintenance organization that would be affected by disclosure notice and a hearing under chapter 48.04 RCW, determines that the interest of policyholders, subscribers, shareholders, or the public will be served by the publication, in
which event the commissioner may publish all or any part of
the report in the manner he or she deems appropriate. [1995
c 86 § 19.]
48.46.605
48.46.605 Material acquisitions or dispositions. No
acquisitions or dispositions of assets need be reported pursuant to RCW 48.46.600 if the acquisitions or dispositions are
not material. For purposes of RCW 48.46.600 through
48.46.625, a material acquisition, or the aggregate of any
series of related acquisitions during any thirty-day period; or
disposition, or the aggregate of any series of related dispositions during any thirty-day period is an acquisition or disposition that is nonrecurring and not in the ordinary course of
business and involves more than five percent of the reporting
health maintenance organization's total assets as reported in
its most recent statutory statement filed with the commissioner. [1995 c 86 § 20.]
48.46.610
48.46.610 Asset acquisitions—Asset dispositions. (1)
Asset acquisitions subject to RCW 48.46.600 through
48.46.625 include every purchase, lease, exchange, merger,
consolidation, succession, or other acquisition other than the
construction or development of real property by or for the
reporting health maintenance organization or the acquisition
of materials for such purpose.
(2) Asset dispositions subject to RCW 48.46.600
through 48.46.625 include every sale, lease, exchange,
merger, consolidation, mortgage, hypothecation, abandon(2004 Ed.)
48.46.900
ment, destruction, other disposition, or assignment, whether
for the benefit of creditors or otherwise. [1995 c 86 § 21.]
48.46.615
48.46.615 Report of a material acquisition or disposition of assets—Information required. The following information is required to be disclosed in any report of a material
acquisition or disposition of assets:
(1) Date of the transaction;
(2) Manner of acquisition or disposition;
(3) Description of the assets involved;
(4) Nature and amount of the consideration given or
received;
(5) Purpose of or reason for the transaction;
(6) Manner by which the amount of consideration was
determined;
(7) Gain or loss recognized or realized as a result of the
transaction; and
(8) Names of the persons from whom the assets were
acquired or to whom they were disposed. [1995 c 86 § 22.]
48.46.620
48.46.620 Material nonrenewals, cancellations, or
revisions of ceded reinsurance agreements. (1) No nonrenewals, cancellations, or revisions of ceded reinsurance
agreements need be reported under RCW 48.46.600 if the
nonrenewals, cancellations, or revisions are not material. For
purposes of RCW 48.46.600 through 48.46.625, a material
nonrenewal, cancellation, or revision is one that affects:
(a) More than fifty percent of a health maintenance organization's total reserve credit taken for business ceded, on an
annualized basis, as indicated in the health maintenance organization's most recent annual statement;
(b) More than ten percent of a health maintenance organization's total cession when it is replaced by one or more
unauthorized reinsurers; or
(c) Previously established collateral requirements, when
they have been reduced or waived as respects one or more
unauthorized reinsurers representing collectively more than
ten percent of a total cession.
(2) However, a filing is not required if a health maintenance organization's total reserve credit taken for business
ceded represents, on an annualized basis, less than ten percent
of the statutory reserve requirement prior to any cession.
[1995 c 86 § 23.]
48.46.625
48.46.625 Report of a material nonrenewal, cancellation, or revision of ceded reinsurance agreements—Information required. The following is required to be disclosed
in any report of a material nonrenewal, cancellation, or revision of ceded reinsurance agreements:
(1) The effective date of the nonrenewal, cancellation or
revision;
(2) The description of the transaction with an identification of the initiator;
(3) The purpose of or reason for the transaction; and
(4) If applicable, the identity of the replacement reinsurers. [1995 c 86 § 24.]
48.46.900
48.46.900 Liberal construction. It is intended that the
provisions of this chapter shall be liberally construed to
[Title 48 RCW—page 323]
48.46.910
Title 48 RCW: Insurance
accomplish the purposes provided for and authorized herein.
[1975 1st ex.s. c 290 § 24.]
48.46.910
48.46.910 Severability—1975 1st ex.s. c 290. If any
provision of this 1975 amendatory act, or its application to
any person or circumstance is held invalid, the remainder of
the act, or the application of the provision to other persons or
circumstances is not affected. [1975 1st ex.s. c 290 § 26.]
48.46.920
48.46.920 Short title. This 1975 amendatory act may
be known and cited as "The Washington Health Maintenance
Organization Act of 1975". [1975 1st ex.s. c 290 § 27.]
Chapter 48.47
Chapter 48.47 RCW
MANDATED HEALTH BENEFITS
Sections
48.47.005
48.47.010
48.47.020
48.47.030
48.47.900
Legislative findings—Purpose.
Definitions.
Submission of mandated health benefit proposal—Review—
Benefit must be authorized by law.
Mandated health benefit proposal—Guidelines for assessing
impact—Inclusion of ad hoc review panels—Health care
authority.
Severability—1997 c 412.
48.47.005
48.47.005 Legislative findings—Purpose. The legislature finds that there is a continued interest in mandating certain health coverages or offering of health coverages by
health carriers; and that improved access to these health care
services to segments of the population which desire them can
provide beneficial social and health consequences which may
be in the public interest.
The legislature finds further, however, that the cost ramifications of expanding health coverages is of continuing concern; and that the merits of a particular mandated benefit
must be balanced against a variety of consequences which
may go far beyond the immediate impact upon the cost of
insurance coverage. The legislature hereby finds and declares
that a systematic review of proposed mandated benefits,
which explores all the ramifications of such proposed legislation, will assist the legislature in determining whether mandating a particular coverage or offering is in the public interest. The purpose of this chapter is to establish a procedure for
the proposal, review, and determination of mandated benefit
necessity. [1997 c 412 § 1; 1984 c 56 § 1. Formerly RCW
48.42.060.]
48.47.010
48.47.010 Definitions. Unless otherwise specifically
provided, the definitions in this section apply throughout this
chapter.
(1) "Appropriate committees of the legislature" or "committees" means nonfiscal standing committees of the Washington state senate and house of representatives that have
jurisdiction over statutes that regulate health carriers, health
care facilities, health care providers, or health care services.
(2) "Department" means the Washington state department of health.
(3) "Health care facility" or "facility" means hospices
licensed under chapter 70.127 RCW, hospitals licensed under
chapter 70.41 RCW, rural health care facilities as defined in
RCW 70.175.020, psychiatric hospitals licensed under chap[Title 48 RCW—page 324]
ter 71.12 RCW, nursing homes licensed under chapter 18.51
RCW, community mental health centers licensed under chapter 71.05 or 71.24 RCW, kidney disease treatment centers
licensed under chapter 70.41 RCW, ambulatory diagnostic,
treatment, or surgical facilities licensed under chapter 70.41
RCW, drug and alcohol treatment facilities licensed under
chapter 70.96A RCW, and home health agencies licensed
under chapter 70.127 RCW, and includes such facilities if
owned and operated by a political subdivision or instrumentality of the state, and such other facilities as required by federal law and implementing regulations.
(4) "Health care provider" or "provider" means:
(a) A person regulated under Title 18 or chapter 70.127
RCW, to practice health or health-related services or otherwise practicing health care services in this state consistent
with state law; or
(b) An employee or agent of a person described in (a) of
this subsection, acting in the course and scope of his or her
employment.
(5) "Health care service" or "service" means a service,
drug, or medical equipment offered or provided by a health
care facility and a health care provider relating to the prevention, cure, or treatment of illness, injury, or disease.
(6) "Health carrier" or "carrier" means a disability
insurer regulated under chapter 48.20 or 48.21 RCW, a health
care service contractor as defined in RCW 48.44.010, a
health maintenance organization as defined in RCW
48.46.020, plans operating under the state health care authority under chapter 41.05 RCW, the state health insurance pool
operating under chapter 48.41 RCW, and insuring entities
regulated in chapter 48.43 RCW.
(7) "Mandated health benefit," "mandated benefit," or
"benefit" means coverage or offering required by law to be
provided by a health carrier to: (a) Cover a specific health
care service or services; (b) cover treatment of a specific condition or conditions; or (c) contract, pay, or reimburse specific categories of health care providers for specific services;
however, it does not mean benefits established pursuant to
chapter 74.09, 41.05, or 70.47 RCW, or scope of practice
modifications pursuant to chapter 18.120 RCW. [1997 c 412
§ 2.]
48.47.020
48.47.020 Submission of mandated health benefit
proposal—Review—Benefit must be authorized by law.
Mandated health benefits shall be established as follows:
(1) Every person who, or organization that, seeks to
establish a mandated benefit shall, at least ninety days prior
to a regular legislative session, submit a mandated benefit
proposal to the appropriate committees of the legislature,
assessing the social impact, financial impact, and evidence of
health care service efficacy of the benefit in strict adherence
to the criteria enumerated in RCW 48.47.030.
(2) The chair of a committee may request that the department examine the proposal using the criteria set forth in
RCW 48.47.030, however, such request must be made no
later than nine months prior to a subsequent regular legislative session.
(3) To the extent that funds are appropriated for this purpose, the department shall report to the appropriate committees of the legislature on the appropriateness of adoption no
(2004 Ed.)
State Fire Protection
later than thirty days prior to the legislative session during
which the proposal is to be considered.
(4) Mandated benefits must be authorized by law. [1997
c 412 § 3; 1989 1st ex.s. c 9 § 221; 1987 c 150 § 79; 1984 c
56 § 2. Formerly RCW 48.42.070.]
Effective date—Severability—1989 1st ex.s. c 9: See RCW 43.70.910
and 43.70.920.
Severability—1987 c 150: See RCW 18.122.901.
48.47.030 Mandated health benefit proposal—
Guidelines for assessing impact—Inclusion of ad hoc
review panels—Health care authority. (1) Based on the
availability of relevant information, the following criteria
shall be used to assess the impact of proposed mandated benefits:
(a) The social impact: (i) To what extent is the benefit
generally utilized by a significant portion of the population?
(ii) To what extent is the benefit already generally available?
(iii) If the benefit is not generally available, to what extent
has its unavailability resulted in persons not receiving needed
services? (iv) If the benefit is not generally available, to what
extent has its unavailability resulted in unreasonable financial
hardship? (v) What is the level of public demand for the benefit? (vi) What is the level of interest of collective bargaining
agents in negotiating privately for inclusion of this benefit in
group contracts?
(b) The financial impact: (i) To what extent will the benefit increase or decrease the cost of treatment or service? (ii)
To what extent will the coverage increase the appropriate use
of the benefit? (iii) To what extent will the benefit be a substitute for a more expensive benefit? (iv) To what extent will
the benefit increase or decrease the administrative expenses
of health carriers and the premium and administrative
expenses of policyholders? (v) What will be the impact of
this benefit on the total cost of health care services and on
premiums for health coverage? (vi) What will be the impact
of this benefit on costs for state-purchased health care? (vii)
What will be the impact of this benefit on affordability and
access to coverage?
(c) Evidence of health care service efficacy:
(i) If a mandatory benefit of a specific service is sought,
to what extent has there been conducted professionally
accepted controlled trials demonstrating the health consequences of that service compared to no service or an alternative service?
(ii) If a mandated benefit of a category of health care provider is sought, to what extent has there been conducted professionally accepted controlled trials demonstrating the
health consequences achieved by the mandated benefit of this
category of health care provider?
(iii) To what extent will the mandated benefit enhance
the general health status of the state residents?
(2) The department shall consider the availability of relevant information in assessing the completeness of the proposal.
(3) The department may supplement these criteria to
reflect new relevant information or additional significant
issues.
(4) The department shall establish, where appropriate, ad
hoc panels composed of related experts, and representatives
of carriers, consumers, providers, and purchasers to assist in
48.48.030
the proposal review process. Ad hoc panel members shall
serve without compensation.
(5) The health care authority shall evaluate the reasonableness and accuracy of cost estimates associated with the
proposed mandated benefit that are provided to the department by the proposer or other interested parties, and shall
provide comment to the department. Interested parties may,
in addition, submit data directly to the department. [1997 c
412 § 4; 1984 c 56 § 3. Formerly RCW 48.42.080.]
48.47.030
(2004 Ed.)
48.47.900
48.47.900 Severability—1997 c 412. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1997 c 412 § 7.]
Chapter 48.48
Chapter 48.48 RCW
STATE FIRE PROTECTION
(Formerly: State fire marshal)
Sections
48.48.030
48.48.040
48.48.045
48.48.050
48.48.060
48.48.065
48.48.070
48.48.080
48.48.090
48.48.110
48.48.140
48.48.150
48.48.160
Examination of premises.
Standards of safety.
Schools—Standards for fire prevention and safety—Plan
reviews and construction inspections.
Removal of fire hazards—Appeal of order—Penalty.
Reports and investigation of fires—Police powers.
Statistical information and reports.
Examination of witnesses.
Criminal prosecutions.
Record of fires.
Annual report.
Smoke detection devices in dwelling units—Penalty.
Premises with guard animals—Registration, posting—Acts
permitted fire fighters—Liability for injury to fire fighters.
Hazardous liquid and gas pipeline accidents—Preparedness of
local first responders.
Director of fire protection, state fire protection policy board: RCW
43.43.932, 43.43.938.
Duties of chief of the Washington state patrol and director of fire protection:
agencies for care of children, expectant mothers, developmentally disabled: RCW 74.15.050.
birthing centers: RCW 18.46.110.
nursing homes: RCW 18.51.140.
public fireworks displays: RCW 70.77.250.
Fire protection districts: Title 52 RCW.
Safety requirements as to doors, public buildings, and places of entertainment: RCW 70.54.070.
Transient accommodations, adoption of rules: RCW 70.62.290.
48.48.030
48.48.030 Examination of premises. (1) The chief of
the Washington state patrol, through the director of fire protection or his or her authorized deputy, shall have authority at
all times of day and night, in the performance of duties
imposed by this chapter, to enter upon and examine any
building or premises where any fire has occurred and other
buildings and premises adjoining or near thereto.
(2) The chief of the Washington state patrol, through the
director of fire protection or his or her authorized deputy,
shall have authority at any reasonable hour to enter into any
public building or premises or any building or premises used
for public purposes to inspect for fire hazards. [1995 c 369 §
25; 1986 c 266 § 67; 1985 c 470 § 17; 1947 c 79 § .33.03;
Rem. Supp. 1947 § 45.33.03.]
Effective date—1995 c 369: See note following RCW 43.43.930.
[Title 48 RCW—page 325]
48.48.040
Title 48 RCW: Insurance
Severability—1986 c 266: See note following RCW 38.52.005.
Severability—1985 c 470: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1985 c 470 § 38.]
Effective date—1985 c 470: "This act shall take effect on January 1,
1986." [1985 c 470 § 40.]
48.48.040
48.48.040 Standards of safety. (1) The chief of the
Washington state patrol, through the director of fire protection or his or her authorized deputy, shall have authority to
enter upon all premises and into all buildings except private
dwellings for the purpose of inspection to ascertain if any fire
hazard exists, and to require conformance with minimum
standards for the prevention of fire and for the protection of
life and property against fire and panic as to use of premises,
and may adopt by reference nationally recognized standards
applicable to local conditions.
(2) The chief of the Washington state patrol, through the
director of fire protection or his or her authorized deputy,
may, upon request by the chief fire official or the local governing body or of taxpayers of such area, assist in the enforcement of any such code. [1995 c 369 § 26; 1986 c 266 § 68;
1985 c 470 § 18; 1947 c 79 § .33.04; Rem. Supp. 1947 §
45.33.04.]
Effective date—1995 c 369: See note following RCW 43.43.930.
Severability—1986 c 266: See note following RCW 38.52.005.
Severability—Effective date—1985 c 470: See notes following RCW
48.48.030.
48.48.045
48.48.045 Schools—Standards for fire prevention
and safety—Plan reviews and construction inspections.
Nonconstruction standards relative to fire prevention and
safety for all schools under the jurisdiction of the superintendent of public instruction and state board of education shall
be established by the state fire protection board. The director
of fire protection shall make or cause to be made plan reviews
and construction inspections for all E-1 occupancies as may
be necessary to insure compliance with the state building
code and standards for schools adopted under chapter 19.27
RCW. Nothing in this section prohibits the director of fire
protection from delegating construction inspection authority
to any local jurisdiction. [1991 c 170 § 2; 1986 c 266 § 69;
1985 c 470 § 19; 1981 c 198 § 3; 1972 ex.s. c 70 § 1.]
Severability—1986 c 266: See note following RCW 38.52.005.
Severability—Effective date—1985 c 470: See notes following RCW
48.48.030.
48.48.050
48.48.050 Removal of fire hazards—Appeal of
order—Penalty. (1) If the chief of the Washington state
patrol, through the director of fire protection or his or her
authorized deputy, finds in any building or premises subject
to their inspection under this chapter, any combustible material or flammable conditions or fire hazards dangerous to the
safety of the building, premises, or to the public, he or she
shall by written order require such condition to be remedied,
and such order shall forthwith be complied with by the owner
or occupant of the building or premises.
(2) An owner or occupant aggrieved by any such order
made by the chief of the Washington state patrol, through the
director of fire protection or his or her deputy, may appeal
[Title 48 RCW—page 326]
such order pursuant to chapter 34.05 RCW. If the order is
confirmed, the order shall remain in force and be complied
with by the owner or occupant.
(3) Any owner or occupant failing to comply with any
such order not appealed from or with any order so confirmed
shall be punishable by a fine of not less than ten dollars nor
more than fifty dollars for each day such failure exists. [1995
c 369 § 27; 1986 c 266 § 70; 1985 c 470 § 20; 1947 c 79 §
.33.05; Rem. Supp. 1947 § 45.33.05.]
Effective date—1995 c 369: See note following RCW 43.43.930.
Severability—1986 c 266: See note following RCW 38.52.005.
Severability—Effective date—1985 c 470: See notes following RCW
48.48.030.
48.48.060
48.48.060 Reports and investigation of fires—Police
powers. (1) The responsibility for investigating the origin,
cause, circumstances, and extent of loss of all fires shall be
assigned as follows:
(a) Within any city or town, the chief of the fire department;
(b) Within unincorporated areas of a county, the county
fire marshal, or other fire official so designated by the county
legislative authority.
(2) No fire marshal, or other person, may enter the scene
of an emergency until permitted by the officer in charge of
the emergency incident.
(3) Nothing shall prevent any city, town, county, or fire
protection district, or any combination thereof, from entering
into interlocal agreements to meet the responsibility required
by this section.
(4) When any fire investigation indicates that the cause
of the fire is determined to be suspicious or criminal in
nature, the person responsible for the fire investigation shall
immediately report the results of said investigation to the
local law enforcement agency and the chief of the Washington state patrol, through the state fire marshal.
(5) In addition to the responsibility imposed by this section, any law enforcement agency, sheriff, or chief of police
may assist in the investigation of the origin, cause, circumstances, and extent of loss of all fires within his or her respective jurisdiction.
(6) The chief of the Washington state patrol, through the
director of fire protection or his or her deputy, may investigate any fire for the purpose of determining its cause, origin,
and the extent of the loss. The chief of the Washington state
patrol, through the director of fire protection or his or her
deputy, shall assist in the investigation of those fires of criminal, suspected, or undetermined cause when requested by the
reporting agency. In the investigation of any fire of criminal,
suspected, or undetermined cause, the chief of the Washington state patrol and the director of fire protection or his or her
deputy, are vested with police powers to enforce the laws of
this state. To exercise these powers, authorized deputies must
receive prior written authorization from the chief of the
Washington state patrol, through the director of fire protection, and shall have completed a course of training prescribed
by the Washington state criminal justice training commission. [1996 c 161 § 1; 1995 c 369 § 28; 1986 c 266 § 71; 1985
c 470 § 21; 1981 c 104 § 1; 1980 c 181 § 1; 1947 c 79 §
.33.06; Rem. Supp. 1947 § 45.33.06.]
(2004 Ed.)
State Fire Protection
Effective date—1995 c 369: See note following RCW 43.43.930.
Severability—1986 c 266: See note following RCW 38.52.005.
Severability—Effective date—1985 c 470: See notes following RCW
48.48.030.
48.48.065
48.48.065 Statistical information and reports. (1)
The chief of each organized fire department, or the sheriff or
other designated county official having jurisdiction over
areas not within the jurisdiction of any fire department, shall
report statistical information and data to the chief of the
Washington state patrol, through the director of fire protection, on each fire occurring within the official's jurisdiction
and, within two business days, report any death resulting
from fire. Reports shall be consistent with the national fire
incident reporting system developed by the United States fire
administration and rules established by the chief of the Washington state patrol, through the director of fire protection. The
chief of the Washington state patrol, through the director of
fire protection, and the department of natural resources shall
jointly determine the statistical information to be reported on
fires on land under the jurisdiction of the department of natural resources.
(2) The chief of the Washington state patrol, through the
director of fire protection, shall analyze the information and
data reported, compile a report, and distribute a copy annually by July 1st to each chief fire official in the state. Upon
request, the chief of the Washington state patrol, through the
director of fire protection, shall also furnish a copy of the
report to any other interested person at cost.
(3) In carrying out the duties relating to collecting, analyzing, and reporting statistical fire data, the fire protection
policy board may purchase statistical fire data from a qualified individual or organization. The information shall meet
the diverse needs of state and local fire reporting agencies
and shall be (a) defined in understandable terms of common
usage in the fire community; (b) adaptable to the varying levels of resources available; (c) maintained in a manner that
will foster both technical support and resource sharing; and
(d) designed to meet both short and long-term needs. [1999 c
231 § 1; 1995 c 369 § 29; 1986 c 266 § 72; 1985 c 470 § 22;
1980 c 181 § 2.]
48.48.140
48.48.080
48.48.080 Criminal prosecutions. If as the result of
any such investigation, or because of any information
received, the chief of the Washington state patrol, through the
director of fire protection, is of the opinion that there is evidence sufficient to charge any person with any crime, he or
she may cause such person to be arrested and charged with
such offense, and shall furnish to the prosecuting attorney of
the county in which the offense was committed, the names of
witnesses and all pertinent and material evidence and testimony within his or her possession relative to the offense.
[1995 c 369 § 31; 1986 c 266 § 74; 1985 c 470 § 24; 1947 c
79 § .33.08; Rem. Supp. 1947 § 45.33.08.]
Effective date—1995 c 369: See note following RCW 43.43.930.
Severability—1986 c 266: See note following RCW 38.52.005.
Severability—Effective date—1985 c 470: See notes following RCW
48.48.030.
48.48.090
48.48.090 Record of fires. The chief of the Washington
state patrol, through the director of fire protection, shall keep
on file all reports of fires made to him or her pursuant to this
code. Such records shall at all times during business hours be
open to public inspection; except, that any testimony taken in
a fire investigation may, in the discretion of the chief of the
Washington state patrol, through the director of fire protection, be withheld from public scrutiny. The chief of the
Washington state patrol, through the director of fire protection, may destroy any such report after five years from its
date. [1995 c 369 § 32; 1986 c 266 § 75; 1985 c 470 § 25;
1947 c 79 § .33.09; Rem. Supp. 1947 § 45.33.09.]
Effective date—1995 c 369: See note following RCW 43.43.930.
Severability—1986 c 266: See note following RCW 38.52.005.
Severability—Effective date—1985 c 470: See notes following RCW
48.48.030.
48.48.110
Effective date—1995 c 369: See note following RCW 43.43.930.
48.48.110 Annual report. The chief of the Washington
state patrol, through the director of fire protection, shall submit annually a report to the governor of this state. The report
shall contain a statement of his or her official acts pursuant to
this chapter. [1995 c 369 § 33; 1986 c 266 § 76; 1985 c 470
§ 26; 1977 c 75 § 71; 1947 c 79 § .33.11; Rem. Supp. 1947 §
45.33.11.]
Severability—1986 c 266: See note following RCW 38.52.005.
Effective date—1995 c 369: See note following RCW 43.43.930.
Severability—Effective date—1985 c 470: See notes following RCW
48.48.030.
48.48.070
48.48.070 Examination of witnesses. In the conduct of
any investigation into the cause, origin, or loss resulting from
any fire, the chief of the Washington state patrol and the
director of fire protection shall have the same power and
rights relative to securing the attendance of witnesses and the
taking of testimony under oath as is conferred upon the insurance commissioner under RCW 48.03.070. False swearing
by any such witness shall be deemed to be perjury and shall
be subject to punishment as such. [1995 c 369 § 30; 1986 c
266 § 73; 1985 c 470 § 23; 1947 c 79 § .33.07; Rem. Supp.
1947 § 45.33.07.]
Effective date—1995 c 369: See note following RCW 43.43.930.
Severability—1986 c 266: See note following RCW 38.52.005.
Severability—Effective date—1985 c 470: See notes following RCW
48.48.030.
(2004 Ed.)
Severability—1986 c 266: See note following RCW 38.52.005.
Severability—Effective date—1985 c 470: See notes following RCW
48.48.030.
48.48.140
48.48.140 Smoke detection devices in dwelling
units—Penalty. (1) Smoke detection devices shall be
installed inside all dwelling units:
(a) Occupied by persons other than the owner on and
after December 31, 1981; or
(b) Built or manufactured in this state after December 31,
1980.
(2) The smoke detection devices shall be designed, manufactured, and installed inside dwelling units in conformance
with:
(a) Nationally accepted standards; and
(b) As provided by the administrative procedure act,
chapter 34.05 RCW, rules and regulations promulgated by
[Title 48 RCW—page 327]
48.48.150
Title 48 RCW: Insurance
the chief of the Washington state patrol, through the director
of fire protection.
(3) Installation of smoke detection devices shall be the
responsibility of the owner. Maintenance of smoke detection
devices, including the replacement of batteries where
required for the proper operation of the smoke detection
device, shall be the responsibility of the tenant, who shall
maintain the device as specified by the manufacturer. At the
time of a vacancy, the owner shall insure that the smoke
detection device is operational prior to the reoccupancy of the
dwelling unit.
(4) Any owner or tenant failing to comply with this section shall be punished by a fine of not more than two hundred
dollars.
(5) For the purposes of this section:
(a) "Dwelling unit" means a single unit providing complete, independent living facilities for one or more persons
including permanent provisions for living, sleeping, eating,
cooking, and sanitation; and
(b) "Smoke detection device" means an assembly incorporating in one unit a device which detects visible or invisible
particles of combustion, the control equipment, and the
alarm-sounding device, operated from a power supply either
in the unit or obtained at the point of installation. [1995 c 369
§ 34; 1991 c 154 § 1; 1986 c 266 § 89; 1980 c 50 § 1.]
Effective date—1995 c 369: See note following RCW 43.43.930.
Severability—1986 c 266: See note following RCW 38.52.005.
48.48.150
48.48.150 Premises with guard animals—Registration, posting—Acts permitted fire fighters—Liability for
injury to fire fighters. (1) All premises guarded by guard
animals, which are animals professionally trained to defend
and protect premises or the occupants of the premises, shall
be registered with the local fire department. Front entrances
to residences and all entrances to business premises shall be
posted in a visible location with signs approved by the chief
of the Washington state patrol, through the director of fire
protection, indicating that guard animals are present.
(2) A fire fighter, who reasonably believes that his or her
safety is endangered by the presence of a guard animal, may
without liability: (a) Refuse to enter the premises, or (b) take
any reasonable action necessary to protect himself or herself
from attack by the guard animal.
(3) If the person responsible for the guard animal being
on the premises does not comply with subsection (1) of this
section, that person may be held liable for any injury to the
fire fighter caused by the presence of the guard animal. [1995
c 369 § 35; 1986 c 266 § 90; 1983 c 258 § 1.]
Effective date—1995 c 369: See note following RCW 43.43.930.
(a) Evaluate the preparedness of local first responders in
meeting emergency management demands under subsection
(2) of this section; and
(b) Conduct an assessment of the equipment and personnel needed by local first responders to meet emergency management demands related to pipelines.
(2) The chief of the Washington state patrol, through the
director of fire protection or his or her deputy, shall develop
curricula for training local first responders to deal with hazardous liquid and gas pipeline accidents. The curricula shall
be developed in conjunction with pipeline companies and
local first responders, and shall include a timetable and costs
for providing training as defined in the curricula to all communities housing pipelines. Separate curricula shall be developed for hazardous liquid and gas pipelines so that the differences between pipelines may be recognized and appropriate
accident responses provided. The need for a training program
for regional incident management teams shall also be evaluated.
(3) In consultation with other relevant agencies, the chief
of the Washington state patrol, through the director of fire
protection or his or her deputy, shall identify the need and
means for achieving consistent application of the national
interagency incident management system.
(4) For the purposes of this section, "local first responders" means police, fire, emergency medical staff, and volunteers. [2000 c 191 § 20.]
Intent—Findings—Conflict with federal requirements—Short
title—Effective date—2000 c 191: See RCW 81.88.005 and 81.88.900
through 81.88.902.
Chapter 48.50 RCW
INSURANCE FRAUD REPORTING IMMUNITY ACT
Chapter 48.50
(Formerly: Arson reporting immunity act)
Sections
48.50.010
48.50.020
48.50.030
48.50.040
48.50.050
48.50.055
48.50.070
48.50.075
48.50.090
48.50.900
Short title.
Definitions.
Release of information or evidence by insurer.
Notification by insurer.
Release of information by authorized agencies.
Release of information to requesting insurer.
Immunity from liability for releasing information.
Immunity from liability for denying claim based on written
opinion of authorized agency.
Local ordinances not preempted.
Severability—1979 ex.s. c 80.
48.50.010
48.50.010 Short title. This chapter shall be known and
may be cited as the Insurance Fraud Reporting Immunity Act.
[1995 c 285 § 20; 1979 ex.s. c 80 § 1.]
Effective date—1995 c 285: See RCW 48.30A.900.
Severability—1986 c 266: See note following RCW 38.52.005.
48.50.020
48.48.160
48.48.160 Hazardous liquid and gas pipeline accidents—Preparedness of local first responders. (1) The
chief of the Washington state patrol, through the director of
fire protection or his or her authorized deputy, shall, in consultation with the emergency management program within
the state military department, the department of ecology, the
utilities and transportation commission, and local emergency
services organizations:
[Title 48 RCW—page 328]
48.50.020 Definitions. As used in this chapter the following terms have the meanings indicated unless the context
clearly requires otherwise.
(1) "Authorized agency" means a public agency or its
official representative having legal authority to investigate
criminal activity or the cause of a fire or to initiate criminal
proceedings, including the following persons and agencies:
(a) The chief of the Washington state patrol and the
director of fire protection;
(2004 Ed.)
Insurance Fraud Reporting Immunity Act
(b) The prosecuting attorney of the county where the
criminal activity occurred;
(c) State, county, and local law enforcement agencies;
(d) The state attorney general;
(e) The Federal Bureau of Investigation, or any other
federal law enforcement agency;
(f) The United States attorney's office; and
(g) The office of the insurance commissioner.
(2) "Insurer" means any insurer, as defined in RCW
48.01.050 and any self-insurer.
(3) "Relevant information" means information having
any tendency to make the existence of any fact that is of consequence to the investigation or determination of criminal
activity or the cause of any fire more probable or less probable than it would be without the information. [2000 c 254 §
1. Prior: 1995 c 369 § 36; 1995 c 285 § 21; 1986 c 266 § 77;
1985 c 470 § 27; 1979 ex.s. c 80 § 2.]
Effective date—1995 c 369: See note following RCW 43.43.930.
Effective date—1995 c 285: See RCW 48.30A.900.
Severability—1986 c 266: See note following RCW 38.52.005.
Severability—Effective date—1985 c 470: See notes following RCW
48.48.030.
48.50.030
48.50.030 Release of information or evidence by
insurer. (1) Any authorized agency may request, in writing,
that an insurer release to the agency any or all relevant information or evidence which the insurer may have in its possession relating to criminal activity, if such information or evidence is deemed important by the agency in its discretion.
(2) An insurer who has reason to believe that a person
participated or is participating in criminal activity relating to
a contract of insurance may report relevant information to an
authorized agency.
(3) The information provided to an authorized agency
under this section may include, without limitation:
(a) Pertinent insurance policy information relating to a
claim under investigation and any application for such a policy;
(b) Policy premium payment records which are available;
(c) History of previous claims in which the person was
involved; and
(d) Material relating to the investigation of the loss,
including statements of any person, proof of loss, and any
other evidence found in the investigation.
(4) The insurer receiving a request under subsection (1)
of this section shall furnish all relevant information requested
to the agency within a reasonable time, orally or in writing.
[1995 c 285 § 22; 1979 ex.s. c 80 § 3.]
Effective date—1995 c 285: See RCW 48.30A.900.
48.50.040
48.50.040 Notification by insurer. (1) When an insurer
has reason to believe that a fire loss reported to the insurer
may be of other than accidental cause, the insurer shall notify
the chief of the Washington state patrol, through the director
of fire protection, in the manner prescribed under RCW
48.05.320 concerning the circumstances of the fire loss,
including any and all relevant material developed from the
insurer's inquiry into the fire loss.
(2004 Ed.)
48.50.090
(2) Notification of the chief of the Washington state
patrol, through the director of fire protection, under subsection (1) of this section does not relieve the insurer of the duty
to respond to a request for information from any other authorized agency and does not bar an insurer from other reporting
under RCW 48.50.030(2). [2000 c 254 § 2. Prior: 1995 c 369
§ 37; 1995 c 285 § 23; 1986 c 266 § 91; 1979 ex.s. c 80 § 4.]
Effective date—1995 c 369: See note following RCW 43.43.930.
Effective date—1995 c 285: See RCW 48.30A.900.
Severability—1986 c 266: See note following RCW 38.52.005.
48.50.050
48.50.050 Release of information by authorized
agencies. An authorized agency receiving information under
RCW 48.50.030, 48.50.040, or 48.50.055 may release or provide such information to any other authorized agencies.
[2000 c 254 § 3; 1979 ex.s. c 80 § 5.]
48.50.055
48.50.055 Release of information to requesting
insurer. An insurer providing information to an authorized
agency or agencies under RCW 48.50.030 or 48.50.040 may
request that an authorized agency furnish to the insurer any or
all relevant information possessed by the agency relating to
the particular fire loss. At their discretion, and unless prohibited by any other provision of law, the agency or agencies
may release or provide information to the requesting insurer.
[2000 c 254 § 4.]
48.50.070
48.50.070 Immunity from liability for releasing
information. Any licensed insurance agent, any licensed
insurance broker, or any insurer or person acting in the
insurer's behalf or any authorized agency which releases
information, whether oral or written, under RCW 48.50.030,
48.50.040, 48.50.050, or 48.50.055 is immune from liability
in any civil or criminal action, suit, or prosecution arising
from the release of the information, unless actual malice on
the part of the agent, broker, insurer, or authorized agency
against the insured is shown. [2000 c 254 § 5; 1980 c 102 §
9; 1979 ex.s. c 80 § 7.]
48.50.075
48.50.075 Immunity from liability for denying claim
based on written opinion of authorized agency. In denying
a claim, an insurer who relies upon a written opinion from an
authorized agency specifically enumerated in RCW
48.50.020(1) (a) through (g) that criminal activity that is
related to that claim is being investigated, or a crime has been
charged, and that the claimant is a target of the investigation
or has been charged with a crime, is not liable for bad faith or
other noncontractual theory of damages as a result of this reliance.
Immunity under this section shall exist only so long as
the incident for which the claimant may be responsible is
under active investigation or prosecution, or the authorized
agency states its position that the claim includes or is a result
of criminal activity in which the claimant was a participant.
[1995 c 285 § 24; 1981 c 320 § 2.]
Effective date—1995 c 285: See RCW 48.30A.900.
48.50.090
48.50.090 Local ordinances not preempted. This
chapter does not preempt or preclude any county or munici[Title 48 RCW—page 329]
48.50.900
Title 48 RCW: Insurance
pality from enacting ordinances relating to fire prevention or
control of arson. [1979 ex.s. c 80 § 9.]
48.50.900
48.50.900 Severability—1979 ex.s. c 80. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not
affected. [1979 ex.s. c 80 § 11.]
Chapter 48.53 RCW
FIRE INSURANCE—ARSON FRAUD REDUCTION
Chapter 48.53
Sections
48.53.010
48.53.020
48.53.030
48.53.040
48.53.050
48.53.060
Purpose.
Designation of high arson incidence areas and classes of occupancy—Anti-arson application, contents.
Cancellation of policy—Conditions required for.
Cancellation of policy—Procedure.
Issuance or cancellation of policy in violation of chapter.
Adoption of rules.
48.53.010 Purpose. It is the purpose of this chapter to
reduce the incidence of arson fraud by requiring insurers to
obtain specified information prior to issuing a fire insurance
policy for certain structures and by authorizing insurers to
cancel fire insurance policies when characteristics frequently
associated with arson fraud are present. [1982 c 110 § 1.]
48.53.010
48.53.020 Designation of high arson incidence areas
and classes of occupancy—Anti-arson application, contents. (1) The chief of the Washington state patrol, through
the director of fire protection, may designate certain classes
of occupancy within a geographic area or may designate geographic areas as having an abnormally high incidence of
arson. This designation shall not be a valid reason for cancellation, refusal to issue or renew, modification, or increasing
the premium for any fire insurance policy.
(2) A fire insurance policy may not be issued to insure
any property within a class of occupancy within a geographic
area or within a geographic area designated by the chief of
the Washington state patrol, through the director of fire protection, as having an abnormally high incidence of arson until
the applicant has submitted an anti-arson application and the
insurer or the insurer's representative has inspected the property. The application shall be prescribed by the chief of the
Washington state patrol, through the director of fire protection, and shall contain but not be limited to the following:
(a) The name and address of the prospective insured and
any mortgagees or other parties having an ownership interest
in the property to be insured;
(b) The amount of insurance requested and the method of
valuation used to establish the amount of insurance;
(c) The dates and selling prices of the property, if any,
during the previous three years;
(d) Fire losses exceeding one thousand dollars during the
previous five years for property in which the prospective
insured held an equity interest or mortgage;
(e) Current corrective orders pertaining to fire, safety,
health, building, or construction codes that have not been
complied with within the time period or any extension of
such time period authorized by the authority issuing such corrective order applicable to the property to be insured;
48.53.020
[Title 48 RCW—page 330]
(f) Present or anticipated occupancy of the structure, and
whether a certificate of occupancy has been issued;
(g) Signature and title, if any, of the person submitting
the application.
(3) If the facts required to be reported by subsection (2)
of this section materially change, the insured shall notify the
insurer of any such change within fourteen days.
(4) An anti-arson application is not required for: (a) Fire
insurance policies covering one to four-unit owner-occupied
residential dwellings; (b) policies existing as of June 10,
1982; or (c) the renewal of these policies.
(5) An anti-arson application shall contain a notice stating: "Designation of a class of occupancy within a geographic area or geographic areas as having an abnormally
high incidence of arson shall not be a valid reason for cancellation, refusal to issue or renew, modification, or increasing
the premium for any fire insurance policy." [1995 c 369 § 38;
1986 c 266 § 92; 1982 c 110 § 2.]
Effective date—1995 c 369: See note following RCW 43.43.930.
Severability—1986 c 266: See note following RCW 38.52.005.
48.53.030
48.53.030 Cancellation of policy—Conditions
required for. Notwithstanding the provisions of RCW
48.18.290, where two or more of the following conditions
exist, an insurer may, under RCW 48.53.040, cancel a fire
insurance policy for any structure:
(1) Which, without reasonable explanation, is unoccupied for more than sixty consecutive days, or in which at least
sixty-five percent of the rental units are unoccupied for more
than one hundred twenty consecutive days unless the structure is maintained for seasonal occupancy or is under construction or repair;
(2) On which, without reasonable explanation, progress
toward completion of permanent repairs has not occurred
within sixty days after receipt of funds following satisfactory
adjustment or adjudication of loss resulting from a fire;
(3) Which, because of its physical condition, is in danger
of collapse;
(4) For which, because of its physical condition, a vacation or demolition order has been issued, or which has been
declared unsafe in accordance with applicable law;
(5) From which fixed and salvageable items have been
removed, indicating an intent to vacate the structure;
(6) For which, without reasonable explanation, heat,
water, sewer, and electricity are not furnished for sixty consecutive days; and
(7) Which is not maintained in substantial compliance
with fire, safety, and building codes. [1982 c 110 § 3.]
48.53.040
48.53.040 Cancellation of policy—Procedure. An
insurer may cancel a fire insurance policy when the requirements of RCW 48.53.030 are met only in accordance with the
following procedure:
(1) The insurer shall, not less than five days prior to cancellation, issue written notice of cancellation to the insured or
the insured's representative in charge of the policy. The
notice shall contain at least the following:
(a) The date that the policy will be canceled;
(b) A description of the specific facts justifying the cancellation;
(2004 Ed.)
Insurance Premium Finance Company Act
(c) A copy of this chapter; and
(d) The name, title, address, and telephone number of the
insurer's employee who may be contacted regarding cancellation of the policy.
(2) The notice required by this section shall be actually
delivered or mailed to the insured by certified mail, return
receipt requested, and in addition by first class mail. A copy
of the notice shall, at the time of delivery or mailing to the
insured, or the insured's representative in charge of the policy, be mailed to the insurance commissioner.
(3) The insurer shall also comply with the requirements
of RCW 48.18.290 (1)(b), (2) and (3), and shall provide not
less than twenty days notice of cancellation to each mortgagee, pledgee, or other person shown by the policy to have
an interest in any loss which may occur thereunder except as
provided in subsection (1) of this section.
(4) The portion of any premium paid to the insurer on
account of the policy, unearned because of the cancellation
and in an amount as computed on a pro rata basis, must be
actually paid or mailed to the insured or other person entitled
thereto as shown by the policy or any endorsement thereon,
as soon as possible, and no later than thirty days after the date
that the notice of cancellation was issued. [1982 c 110 § 4.]
48.53.050
48.53.050 Issuance or cancellation of policy in violation of chapter. (1) Any fire insurance policy issued in violation of this chapter shall not be canceled by the insurer
under the procedures authorized by this chapter.
(2) Cancellation of a fire insurance policy in violation of
this chapter shall constitute a violation of this title. [1982 c
110 § 5.]
48.53.060
48.53.060 Adoption of rules. Rules designating geographic areas or classes of occupancy as having an abnormally high incidence of arson, and any other rules necessary
to implement this chapter shall be adopted by the chief of the
Washington state patrol, through the director of fire protection, under chapter 34.05 RCW. [1995 c 369 § 39; 1986 c
266 § 93; 1982 c 110 § 6.]
Effective date—1995 c 369: See note following RCW 43.43.930.
Severability—1986 c 266: See note following RCW 38.52.005.
Chapter 48.56
Chapter 48.56 RCW
INSURANCE PREMIUM FINANCE COMPANY ACT
Sections
48.56.010
48.56.020
48.56.030
48.56.040
48.56.050
48.56.060
48.56.070
48.56.080
48.56.090
48.56.100
48.56.110
48.56.120
48.56.130
48.56.900
(2004 Ed.)
Short title.
Definitions.
License—Required—Fees—Information to be furnished—
Penalty.
Investigation of applicant—Qualifications—Hearing.
Revocation, suspension, or refusal to renew.
Records.
Rules and regulations.
Premium finance agreement.
Service charge.
Delinquency charge—Cancellation charge.
Cancellation of insurance contract.
Cancellation of insurance contract—Return of unearned premiums.
Filing of agreement.
Effective date—1969 ex.s. c 190.
48.56.030
48.56.010 Short title. This chapter shall be known and
may be cited as "The Insurance Premium Finance Company
Act". [1969 ex.s. c 190 § 1.]
48.56.010
48.56.020 Definitions. As used in this chapter:
(1) "Insurance premium finance company" means a person engaged in the business of entering into insurance premium finance agreements.
(2) "Premium finance agreement" means an agreement
by which an insured or prospective insured promises to pay to
a premium finance company the amount advanced or to be
advanced under the agreement to an insurer or to an insurance
agent or broker in payment of premiums on an insurance contract together with a service charge as authorized and limited
by this chapter and as security therefor the insurance premium finance company receives an assignment of the
unearned premium.
(3) "Licensee" means a premium finance company holding a license issued by the insurance commissioner under this
chapter. [1969 ex.s. c 190 § 2.]
48.56.020
48.56.030 License—Required—Fees—Information
to be furnished—Penalty. (1) No person shall engage in the
business of financing insurance premiums in the state without
first having obtained a license as a premium finance company
from the commissioner. Any person who shall engage in the
business of financing insurance premiums in the state without
obtaining a license as provided hereunder shall, upon conviction, be guilty of a misdemeanor and shall be subject to the
penalties provided in this chapter.
(2)(a) Application to the commissioner for the license
shall be made on forms furnished by the commissioner. As
part of, or in connection with, this application, the applicant
and, at the commissioner's discretion, any or all stockholders,
directors, partners, officers, and employees of the business
shall furnish information concerning his or her identity,
including fingerprints for submission to the Washington state
patrol, the federal bureau of investigation, and any governmental agency or entity authorized to receive this information
for a state and national criminal history background check;
personal history; experience; business records; purposes; and
other pertinent information, as the commissioner may reasonably require.
(b) The annual license fee shall be one hundred dollars.
Licenses may be renewed from year to year as of the first day
of May of each year upon payment of the fee of one hundred
dollars. The fee for the license shall be paid to the insurance
commissioner.
(3) The person to whom the license or the renewal may
be issued shall file sworn answers, subject to the penalties of
perjury, to such interrogatories as the commissioner may
require. The commissioner shall have authority, at any time,
to require the applicant to disclose fully the identity of all
stockholders, directors, partners, officers, and employees and
may, in his or her discretion, refuse to issue or renew a license
in the name of any firm, partnership, or corporation if he or
she finds that any officer, employee, stockholder, or partner
who may materially influence the applicant's conduct does
not meet the standards of this chapter.
(4) This section shall not apply to any savings and loan
association, bank, trust company, consumer loan company,
48.56.030
[Title 48 RCW—page 331]
48.56.040
Title 48 RCW: Insurance
industrial loan company or credit union authorized to do
business in this state but RCW 48.56.080 through 48.56.130
and any rules adopted by the commissioner pertaining to such
sections shall be applicable to such organizations, if otherwise eligible, under all premium finance transactions wherein
an insurance policy, other than a life or disability insurance
policy, or any rights thereunder is made the security or collateral for the repayment of the debt, however, neither this section nor the provisions of this chapter shall be applicable to
the inclusion of insurance in a retail installment transaction or
to insurance purchased in connection with a real estate transaction, mortgage, deed of trust, or other security instrument
or an insurance company authorized to do business in this
state unless the insurance company elects to become a licensee.
(5) If in the process of verifying fingerprints under subsection (2) of this section, business records, or other information the commissioner's office incurs fees or charges from
another governmental agency or from a business firm, the
amount of the fees or charges shall be paid to the commissioner's office by the applicant. [2002 c 227 § 4; 1969 ex.s. c
190 § 3.]
Effective date—2002 c 227: See note following RCW 48.06.040.
48.56.040
48.56.040 Investigation of applicant—Qualifications—Hearing. (1) Upon the filing of an application and
the payment of the license fee the commissioner shall make
an investigation of each applicant and shall issue a license if
the applicant is qualified in accordance with this chapter. If
the commissioner does not so find, he shall, within thirty days
after he has received such application, at the request of the
applicant, give the applicant a full hearing.
(2) The commissioner shall issue or renew a license as
may be applied for when he is satisfied that the person to be
licensed—
(a) is competent and trustworthy and intends to act in
good faith in the capacity involved by the license applied for,
(b) has a good business reputation and has had experience, training, or education so as to be qualified in the business for which the license is applied for, and
(c) if a corporation, is a corporation incorporated under
the laws of the state or a foreign corporation authorized to
transact business in the state. [1969 ex.s. c 190 § 4.]
48.56.050
48.56.050 Revocation, suspension, or refusal to
renew. (1) The commissioner may revoke or suspend the
license of any premium finance company when and if after
investigation it appears to the commissioner that—
(a) any license issued to such company was obtained by
fraud,
(b) there was any misrepresentation in the application for
the license,
(c) the holder of such license has otherwise shown himself untrustworthy or incompetent to act as a premium
finance company, or
(d) such company has violated any of the provisions of
this chapter.
(2) Before the commissioner shall revoke, suspend, or
refuse to renew the license of any premium finance company,
he shall give to such person an opportunity to be fully heard
[Title 48 RCW—page 332]
and to introduce evidence in his behalf. In lieu of revoking or
suspending the license for any of the causes enumerated in
this section, after hearing as herein provided, the commissioner may subject such company to a penalty of not more
than two hundred dollars for each offense when in his judgment he finds that the public interest would not be harmed by
the continued operation of such company. The amount of any
such penalty shall be paid by such company through the
office of the commissioner to the state treasurer. At any hearing provided by this section, the commissioner shall have
authority to administer oaths to witnesses. Anyone testifying
falsely, after having been administered such oath, shall be
subject to the penalty of perjury.
(3) If the commissioner refuses to issue or renew any
license or if any applicant or licensee is aggrieved by any
action of the commissioner, said applicant or licensee shall
have the right to a hearing and court proceeding as provided
by statute. [1969 ex.s. c 190 § 5.]
48.56.060
48.56.060 Records. (1) Every licensee shall maintain
records of its premium finance transactions and the said
records shall be open to examination and investigation by the
commissioner. The commissioner may at any time require
any licensee to bring such records as he may direct to the
commissioner's office for examination.
(2) Every licensee shall preserve its records of such premium finance transactions, including cards used in a card
system, for at least three years after making the final entry in
respect to any premium finance agreement. The preservation
of records in photographic form shall constitute compliance
with this requirement. [1969 ex.s. c 190 § 6.]
48.56.070
48.56.070 Rules and regulations. The commissioner
shall have authority to make and enforce such reasonable
rules and regulations as may be necessary in making effective
the provisions of this chapter, but such rules and regulations
shall not be contrary to nor inconsistent with the provisions of
this chapter. [1969 ex.s. c 190 § 7.]
48.56.080
48.56.080 Premium finance agreement. (1) A premium finance agreement shall—
(a) be dated, signed by or on behalf of the insured, and
the printed portion thereof shall be in at least eight point type;
(b) contain the name and place of business of the insurance agent negotiating the related insurance contract, the
name and residence or the place of business of the premium
finance company to which payments are to be made, a
description of the insurance contracts involved and the
amount of the premium therefor; and
(c) set forth the following items where applicable—
(i) the total amount of the premiums,
(ii) the amount of the down payment,
(iii) the principal balance (the difference between items
(i) and (ii)),
(iv) the amount of the service charge,
(v) the balance payable by the insured (sum of items (iii)
and (iv)), and
(vi) the number of installments required, the amount of
each installment expressed in dollars, and the due date or
period thereof.
(2004 Ed.)
Insurance Premium Finance Company Act
(2) The items set out in paragraph (c) of subsection (1)
need not be stated in the sequence or order in which they
appear in such paragraph (c), and additional items may be
included to explain the computations made in determining
the amount to be paid by the insured.
(3) The information required by subsection (1) of this
section shall only be required in the initial agreement where
the premium finance company and the insured enter into an
open end credit transaction, which is defined as follows: A
plan prescribing the terms of credit transactions which may
be made thereunder from time to time and under the terms of
which a finance charge may be computed on the outstanding
unpaid balance from time to time thereunder.
(4) A copy of the premium finance agreement shall be
given to the insured at the time or within ten days of its execution, except where the application has been signed by the
insured and all the finance charges are one dollar or less per
payment. In addition, the premium finance company shall
deliver or mail a copy of the premium finance agreement or
notice identifying policy, insured and producing agent to
each insurer that has premiums involved in the transaction,
within thirty days of the execution of the premium finance
agreement.
(5) It shall be illegal for a premium finance company to
offset funds of an agent with funds belonging to an insured.
Premiums advanced by a premium finance company are
funds belonging to the insured and shall be held in a fiduciary
relationship. [1975-'76 2nd ex.s. c 119 § 6; 1969 ex.s. c 190
§ 8.]
48.56.090
48.56.090 Service charge. (1) A premium finance company shall not charge, contract for, receive, or collect a service charge other than as permitted by this chapter.
(2) The service charge is to be computed on the balance
of the premiums due (after subtracting the down payment
made by the insured in accordance with the premium finance
agreement) from the effective date of the insurance coverage,
for which the premiums are being advanced, to and including
the date when the final installment of the premium finance
agreement is payable.
(3) The service charge shall be a maximum of ten dollars
per one hundred dollars per year plus an acquisition charge of
ten dollars per premium finance agreement which need not be
refunded upon cancellation or prepayment. [1969 ex.s. c 190
§ 9.]
48.56.900
48.56.110
48.56.110 Cancellation of insurance contract. (1)
When a premium finance agreement contains a power of
attorney enabling the premium finance company to cancel
any insurance contract or contracts listed in the agreement,
the insurance contract or contracts shall not be canceled by
the premium finance company unless such cancellation is
effectuated in accordance with this section.
(2) Not less than ten days' written notice shall be mailed
to the insured of the intent of the premium finance company
to cancel the insurance contract unless the default is cured
within such ten day period.
(3) After expiration of such ten day period, the premium
finance company may thereafter request in the name of the
insured, cancellation of such insurance contract or contracts
by mailing to the insurer a notice of cancellation, and the
insurance contract shall be canceled as if such notice of cancellation had been submitted by the insured himself, but without requiring the return of the insurance contract or contracts.
The premium finance company shall also mail a notice of
cancellation to the insured at his last known address.
(4) All statutory, regulatory, and contractual restrictions
providing that the insurance contract may not be canceled
unless notice is given to a governmental agency, mortgagee,
or other third party shall apply where cancellation is effected
under the provisions of this section. The insurer shall give the
prescribed notice in behalf of itself or the insured to any governmental agency, mortgagee, or other third party on or
before the second business day after the day it receives the
notice of cancellation from the premium finance company
and shall determine the effective date of cancellation taking
into consideration the number of days notice required to complete the cancellation. [1969 ex.s. c 190 § 11.]
48.56.120
48.56.120 Cancellation of insurance contract—
Return of unearned premiums. (1) Whenever a financed
insurance contract is canceled, the insurer shall return whatever gross unearned premiums are due under the insurance
contract to the premium finance company for the account of
the insured or insureds.
(2) In the event that the crediting of return premiums to
the account of the insured results in a surplus over the amount
due from the insured, the premium finance company shall
refund such excess to the insured: PROVIDED, That no such
refund shall be required if it amounts to less than one dollar.
[1969 ex.s. c 190 § 12.]
48.56.100
48.56.100 Delinquency charge—Cancellation
charge. A premium finance agreement may provide for the
payment by the insured of a delinquency charge of one dollar
to a maximum of five percent of the delinquent installment
that is in default for a period of five days or more except that
if the loan is primarily for personal, family, or household purposes the delinquency charge shall not exceed five dollars.
If the default results in the cancellation of any insurance
contract listed in the agreement, the agreement may provide
for the payment by the insured of a cancellation charge equal
to the difference between any delinquency charge imposed
with respect to the installment in default and five dollars.
[1995 c 72 § 1; 1969 ex.s. c 190 § 10.]
(2004 Ed.)
48.56.130
48.56.130 Filing of agreement. No filing of the premium finance agreement shall be necessary to perfect the
validity of such agreement as a secured transaction as against
creditors, subsequent purchasers, pledgees, encumbrancers,
successors, or assigns. [1969 ex.s. c 190 § 13.]
48.56.900
48.56.900 Effective date—1969 ex.s. c 190. This act is
necessary for the immediate preservation of the public peace,
health and safety, the support of the state government and its
existing public institutions, and shall take effect on the sixtieth day following passage by the legislature and submission
to the governor for action. [1969 ex.s. c 190 § 15.]
[Title 48 RCW—page 333]
Chapter 48.58
Chapter 48.58
Title 48 RCW: Insurance
Chapter 48.58 RCW
Chapter 48.62
RIOT REINSURANCE REIMBURSEMENT
Sections
48.58.010
Chapter 48.62 RCW
LOCAL GOVERNMENT
INSURANCE TRANSACTIONS
Sections
Riot reinsurance reimbursement—Assessments.
48.58.010
48.58.010 Riot reinsurance reimbursement—Assessments. (1) The commissioner may reimburse the secretary of
the department of housing and urban development under the
provisions of Section 1223(a)(1) of the Urban Property Protection and Reinsurance Act of 1968 (Public Law 90-448) for
losses reinsured by the secretary of the department of housing
and urban development and occurring in this state on or after
August 1, 1968. After receipt by the state treasurer of a statement requesting reimbursement from the secretary of the
department of housing and urban development and upon certification promptly made by the commissioner of insurance,
hereafter referred to as the commissioner, of the correctness
of the amount thereof, the commissioner is hereby authorized
to provide for an assessment upon insurers authorized to do
business in this state in amounts sufficient to pay reimbursement to the secretary of the department of housing and urban
development: PROVIDED, That the amount assessed each
insurer shall be in the same proportion that the premiums
written by each insurer in this state bear to the aggregate premiums written in this state by all insurance companies on
those lines for which reinsurance was available in this state
from the secretary of the department of housing and urban
development during the preceding calendar year.
(2) In the event any insurer fails, by reason of insolvency, to pay any assessment as provided herein, the amount
assessed each insurer, as computed under subsection (1) of
this section, shall be immediately recalculated excluding
therefrom the insolvent insurer so that its assessment is, in
effect, assumed and redistributed among the remaining insurers.
(3) When assessments as provided herein are made, the
individual insurer, after having paid the full amount assessed
against the insurer, may deduct from future premium tax liabilities an amount not to exceed twenty percent per annum
until such deductions equal the amount of the assessment levied against the insurer.
(4) This section shall cease to be of any force and effect
upon termination of the Urban Property Protection and Reinsurance Act of 1968 (Public Law 90-448), except that obligations incurred pursuant to the provisions of this section shall
not be impaired by the expiration of the same.
(5) Notwithstanding the termination of the Urban Property Protection and Reinsurance Act of 1968 (Public Law 90448), the commissioner is authorized to continue in force the
program developed in response to that act, the Washington
essential property insurance inspection and placement program, in order to provide essential property insurance within
the state where it cannot be obtained through the normal
insurance market. [1987 c 128 § 1; 1980 c 32 § 9; 1969 ex.s.
c 140 § 1.]
[Title 48 RCW—page 334]
48.62.011
48.62.021
48.62.031
48.62.036
48.62.041
48.62.051
48.62.061
48.62.071
48.62.081
48.62.091
48.62.101
48.62.111
48.62.121
48.62.123
48.62.125
48.62.131
48.62.141
48.62.151
48.62.161
48.62.171
48.62.900
48.62.901
Legislative intent—Construction.
Definitions.
Authority to self-insure—Options—Risk manager.
Authority to form or join a self-insurance risk pool—When
section not applicable.
Property and liability advisory board—Creation—Membership—Duties.
Health and welfare advisory board—Creation—Membership—Duties.
Rule making by state risk manager—Standards.
Program approval required—State risk manager—Plan of
management and operation.
Multistate program participants—Requirements.
Program approval or disapproval—Procedures—Annual
report.
Access to information—Executive sessions—Public disclosure act.
Investments—Designated treasurer—Deposit requirements—
Bond.
General operating regulations—Employee remuneration—
Governing control—School districts—Use of agents and
brokers—Health care services—Trusts.
Existing benefit program established as a trust—Risk manager—Limited extension of deadline for compliance.
Educational service districts—Rules—Superintendent of public instruction.
Preexisting programs—Notice to state auditor.
Insufficient assets—Program requirement.
Insurance premium taxes—Exemption.
Establishment of fee to cover costs—Boards—State risk manager.
Dissemination of information—Civil immunity.
Effective date, implementation, application—1991 sp.s. c 30.
Severability—1991 sp.s. c 30.
48.62.011
48.62.011 Legislative intent—Construction. This
chapter is intended to provide the exclusive source of local
government entity authority to individually or jointly selfinsure risks, jointly purchase insurance or reinsurance, and to
contract for risk management, claims, and administrative services. This chapter shall be liberally construed to grant local
government entities maximum flexibility in self-insuring to
the extent the self-insurance programs are operated in a safe
and sound manner. This chapter is intended to require prior
approval for the establishment of every individual local government self-insured employee health and welfare benefit
program and every joint local government self-insurance program. In addition, this chapter is intended to require every
local government entity that establishes a self-insurance program not subject to prior approval to notify the state of the
existence of the program and to comply with the regulatory
and statutory standards governing the management and operation of the programs as provided in this chapter. This chapter is not intended to authorize or regulate self-insurance of
unemployment compensation under chapter 50.44 RCW, or
industrial insurance under chapter 51.14 RCW. [1991 sp.s. c
30 § 1.]
48.62.021
48.62.021 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Local government entity" or "entity" means every
unit of local government, both general purpose and special
purpose, and includes, but is not limited to, counties, cities,
towns, port districts, public utility districts, water-sewer dis(2004 Ed.)
Local Government Insurance Transactions
tricts, school districts, fire protection districts, irrigation districts, metropolitan municipal corporations, conservation districts, and other political subdivisions, governmental subdivisions, municipal corporations, and quasi-municipal
corporations.
(2) "Risk assumption" means a decision to absorb the
entity's financial exposure to a risk of loss without the creation of a formal program of advance funding of anticipated
losses.
(3) "Self-insurance" means a formal program of advance
funding and management of entity financial exposure to a
risk of loss that is not transferred through the purchase of an
insurance policy or contract.
(4) "Health and welfare benefits" means a plan or program established by a local government entity or entities for
the purpose of providing its employees and their dependents,
and in the case of school districts, its district employees, students, directors, or any of their dependents, with health care,
accident, disability, death, and salary protection benefits.
(5) "Property and liability risks" includes the risk of
property damage or loss sustained by a local government
entity and the risk of claims arising from the tortious or negligent conduct or any error or omission of the local government entity, its officers, employees, agents, or volunteers as a
result of which a claim may be made against the local government entity.
(6) "State risk manager" means the risk manager of the
risk management division within the office of financial management.
(7) "Nonprofit corporation" or "corporation" has the
same meaning as defined in RCW 24.03.005(3). [2004 c 255
§ 2; 2002 c 332 § 24; 1999 c 153 § 60; 1991 sp.s. c 30 § 2.]
Findings—Intent—2004 c 255: See note following RCW 48.62.036.
Intent—Effective date—2002 c 332: See notes following RCW
43.41.280.
Part headings not law—1999 c 153: See note following RCW
57.04.050.
48.62.031
48.62.031 Authority to self-insure—Options—Risk
manager. (1) The governing body of a local government
entity may individually self-insure, may join or form a selfinsurance program together with other entities, and may
jointly purchase insurance or reinsurance with other entities
for property and liability risks, and health and welfare benefits only as permitted under this chapter. In addition, the
entity or entities may contract for or hire personnel to provide
risk management, claims, and administrative services in
accordance with this chapter.
(2) The agreement to form a joint self-insurance program
shall be made under chapter 39.34 RCW.
(3) Every individual and joint self-insurance program is
subject to audit by the state auditor.
(4) If provided for in the agreement or contract established under chapter 39.34 RCW, a joint self-insurance program may, in conformance with this chapter:
(a) Contract or otherwise provide for risk management
and loss control services;
(b) Contract or otherwise provide legal counsel for the
defense of claims and other legal services;
(c) Consult with the state insurance commissioner and
the state risk manager;
(2004 Ed.)
48.62.036
(d) Jointly purchase insurance and reinsurance coverage
in such form and amount as the program's participants agree
by contract; and
(e) Possess any other powers and perform all other functions reasonably necessary to carry out the purposes of this
chapter.
(5) A local government entity that has decided to assume
a risk of loss must have available for inspection by the state
auditor a written report indicating the class of risk or risks the
governing body of the entity has decided to assume.
(6) Every joint self-insurance program governed by this
chapter shall appoint the risk manager as its attorney to
receive service of, and upon whom shall be served, all legal
process issued against it in this state upon causes of action
arising in this state.
(a) Service upon the risk manager as attorney shall constitute service upon the program. Service upon joint insurance programs subject to chapter 30, Laws of 1991 1st sp.
sess. can be had only by service upon the risk manager. At the
time of service, the plaintiff shall pay to the risk manager a
fee to be set by the risk manager, taxable as costs in the
action.
(b) With the initial filing for approval with the risk manager, each joint self-insurance program shall designate by
name and address the person to whom the risk manager shall
forward legal process so served upon him or her. The joint
self-insurance program may change such person by filing a
new designation.
(c) The appointment of the risk manager as attorney shall
be irrevocable, shall bind any successor in interest or to the
assets or liabilities of the joint self-insurance program, and
shall remain in effect as long as there is in force in this state
any contract made by the joint self-insurance program or liabilities or duties arising therefrom.
(d) The risk manager shall keep a record of the day and
hour of service upon him or her of all legal process. A copy
of the process, by registered mail with return receipt
requested, shall be sent by the risk manager, to the person
designated for the purpose by the joint self-insurance program in its most recent such designation filed with the risk
manager. No proceedings shall be had against the joint selfinsurance program, and the program shall not be required to
appear, plead, or answer, until the expiration of forty days
after the date of service upon the risk manager. [1991 sp.s. c
30 § 3.]
48.62.036 Authority to form or join a self-insurance
risk pool—When section not applicable. (1) A nonprofit
corporation may form or join a self-insurance risk pool with
one or more nonprofit corporations or with a local government entity or entities for property and liability risks.
(2) A nonprofit corporation that participates in or forms
a self-insurance risk pool with one or more nonprofit corporations or with a local government entity or entities, as provided in subsection (1) of this section, is subject to the same
rules and regulations that apply to a local government entity
or entities under this chapter.
(3) This section does not apply to a nonprofit corporation
that:
(a) Individually self-insures for property and liability
risks;
48.62.036
[Title 48 RCW—page 335]
48.62.041
Title 48 RCW: Insurance
(b) Participates in a risk pooling arrangement, including
a risk retention group or a risk purchasing group, regulated
under chapter 48.92 RCW, or is a captive insurer authorized
in its state of domicile; or
(c) Is a hospital licensed under chapter 70.41 RCW or an
entity owned, operated, controlled by, or affiliated with such
a hospital that participates in a self-insurance risk pool or
other risk pooling arrangement, unless the self-insurance
pool or other risk pooling arrangement for property and liability risks includes a local government entity. [2004 c 255 §
3.]
Findings—Intent—2004 c 255: "The legislature finds that recent
increases in property and liability insurance premiums experienced by some
nonprofit organizations have the potential to negatively impact the ability of
these organizations to continue to offer the level of service they provide in
our communities. The legislature finds that nonprofit organizations are distinct from private for-profit businesses. By their very nature, nonprofit organizations are formed for purposes other than generating a profit, and are
restricted from distributing any part of the organization's income to its directors or officers. Because of these characteristics, nonprofit organizations
provide a unique public good to the residents in our state.
The legislature finds that in order to sustain the financial viability of
nonprofit organizations, they should be provided with alternative options for
insuring against risks. The legislature further finds that local government
entities and nonprofit organizations share the common goal of providing services beneficial to the public interest. The legislature finds that allowing
nonprofit organizations and local government entities to pool risk in selfinsurance risk pools may be of mutual benefit for both types of entities.
Therefore, it is the intent of the legislature to allow nonprofit organizations
to form or participate in self-insurance risk pools with other nonprofit organizations or with local government entities where authority for such risk
pooling arrangements does not currently exist in state or federal law." [2004
c 255 § 1.]
48.62.041
48.62.041 Property and liability advisory board—
Creation—Membership—Duties. (1) The property and liability advisory board is created, consisting of the insurance
commissioner and the state risk manager, or their designees,
as ex officio members and five members appointed by the
governor on the basis of their experience and knowledge in
matters pertaining to local government risk management,
self-insurance, and management of joint self-insurance programs. The board shall include at least two representatives
from individual property or liability self-insurance programs
and at least two representatives from joint property or liability self-insurance programs.
(2) The board shall assist the state risk manager in:
(a) Adopting rules governing the operation and management of both individual and joint self-insurance programs
covering liability and property risks;
(b) Reviewing and approving the creation of joint selfinsurance programs covering property or liability risks;
(c) Reviewing annual reports filed by joint self-insurance programs covering property and liability risks and recommending that corrective action be taken by the programs
when necessary; and
(d) Responding to concerns of the state auditor related to
the management and operation of both individual and joint
self-insurance programs covering liability or property risks.
(3) The board shall annually elect a chair and a vice-chair
from its members. The board shall meet at least quarterly at
such times as the state risk manager may fix. The board members who are appointed shall serve without compensation
from the state but shall suffer no loss because of absence
from their regular employment. Members of the board who
[Title 48 RCW—page 336]
are not public employees shall be compensated in accordance
with RCW 43.03.240.
(4) A majority of the board constitutes a quorum for the
transaction of business.
(5) The board shall keep public records of its proceedings. [1991 sp.s. c 30 § 4.]
48.62.051
48.62.051 Health and welfare advisory board—Creation—Membership—Duties. (1) The health and welfare
advisory board is created consisting of the insurance commissioner and the state risk manager, or their designees, as ex
officio members and six members appointed by the governor
on the basis of their experience and knowledge pertaining to
local government self-insured health and welfare benefits
programs. The board shall include one city management representative; one county management representative; two
management representatives from local government selfinsured health and welfare programs; and two representatives
of statewide employee organizations representing local government employees.
(2) The board shall assist the state risk manager in:
(a) Adopting rules governing the operation and management of both individual and joint self-insured health and welfare benefits programs;
(b) Reviewing and approving the creation of both individual and joint self-insured health and welfare benefits programs;
(c) Reviewing annual reports filed by health and welfare
benefits programs and in recommending that corrective
action be taken by the programs when necessary; and
(d) Responding to concerns of the state auditor related to
the management and operation of health and welfare benefits
programs.
(3) The board shall annually elect a chair and a vice-chair
from its members. The board shall meet at least quarterly at
such times as the state risk manager may fix. The board members who are appointed shall serve without compensation
from the state but shall suffer no loss because of absence
from their regular employment. Members of the board who
are not public employees shall be compensated in accordance
with RCW 43.03.240.
(4) A majority of the board constitutes a quorum for the
transaction of business.
(5) The board shall keep public records of its proceedings. [1991 sp.s. c 30 § 5.]
48.62.061
48.62.061 Rule making by state risk manager—Standards. The state risk manager, in consultation with the property and liability advisory board, shall adopt rules governing
the management and operation of both individual and joint
local government self-insurance programs covering property
or liability risks. The state risk manager shall also adopt rules
governing the management and operation of both individual
and joint local government self-insured health and welfare
benefits programs in consultation with the health and welfare
benefits advisory board. All rules shall be appropriate for the
type of program and class of risk covered. The state risk manager's rules shall include:
(2004 Ed.)
Local Government Insurance Transactions
(1) Standards for the management, operation, and solvency of self-insurance programs, including the necessity
and frequency of actuarial analyses and claims audits;
(2) Standards for claims management procedures; and
(3) Standards for contracts between self-insurance programs and private businesses including standards for contracts between third-party administrators and programs.
[1991 sp.s. c 30 § 6.]
48.62.071
48.62.071 Program approval required—State risk
manager—Plan of management and operation. Before
the establishment of a joint self-insurance program covering
property or liability risks by local government entities, or an
individual or joint local government self-insured health and
welfare benefits program, the entity or entities must obtain
the approval of the state risk manager. Risk manager
approval is not required for the establishment of an individual
local government self-insurance program covering property
or liability risks. The entity or entities proposing creation of a
self-insurance program requiring prior approval shall submit
a plan of management and operation to the state risk manager
and the state auditor that provides at least the following information:
(1) The risk or risks to be covered, including any coverage definitions, terms, conditions, and limitations or in the
case of health and welfare benefits programs, the benefits to
be provided, including any benefit definitions, terms, conditions, and limitations;
(2) The amount and method of financing the benefits or
covered risks, including the initial capital and proposed rates
and projected premiums;
(3) The proposed claim reserving practices;
(4) The proposed purchase and maintenance of insurance
or reinsurance in excess of the amounts retained by the selfinsurance program;
(5) In the case of a joint program, the legal form of the
program, including but not limited to any bylaws, charter, or
trust agreement;
(6) In the case of a joint program, the agreements with
members of the program defining the responsibilities and
benefits of each member and management;
(7) The proposed accounting, depositing, and investment
practices of the program;
(8) The proposed time when actuarial analysis will be
first conducted and the frequency of future actuarial analysis;
(9) A designation of the individual upon whom service
of process shall be executed on behalf of the program. In the
case of a joint program, a designation of the individual to
whom service of process shall be forwarded by the risk manager on behalf of the program;
(10) All contracts between the program and private persons providing risk management, claims, or other administrative services;
(11) A professional analysis of the feasibility of creation
and maintenance of the program; and
(12) Any other information required by rule of the state
risk manager that is necessary to determine the probable
financial and management success of the program or that is
necessary to determine compliance with this chapter. [1991
sp.s. c 30 § 7.]
(2004 Ed.)
48.62.091
48.62.081
48.62.081 Multistate program participants—
Requirements. A local government entity may participate in
a joint self-insurance program covering property or liability
risks with similar local government entities from other states
if the program satisfies the following requirements:
(1) Only those local government entities of this state and
similar entities of other states that are provided insurance by
the program may have ownership interest in the program;
(2) The participating local government entities of this
state and other states shall elect a board of directors to manage the program, a majority of whom shall be affiliated with
one or more of the participating entities;
(3) The program must provide coverage through the
delivery to each participating entity of one or more written
policies effecting insurance of covered risks;
(4) The program shall be financed, including the payment of premiums and the contribution of initial capital, in
accordance with the plan of management and operation submitted to the state risk manager in accordance with this chapter;
(5) The financial statements of the program shall be
audited annually by the certified public accountants for the
program, and such audited financial statements shall be delivered to the Washington state auditor and the state risk manager not more than one hundred twenty days after the end of
each fiscal year of the program;
(6) The investments of the program shall be initiated
only with financial institutions and/or broker-dealers doing
business in those states in which participating entities are
located, and such investments shall be audited annually by
the certified public accountants for the program, and a list of
such investments shall be delivered to the Washington state
auditor not more than one hundred twenty days after the end
of each fiscal year of the program;
(7) The treasurer of a multistate joint self-insurance program shall be designated by resolution of the program and
such treasurer shall be located in the state of one of the participating entities;
(8) The participating entities may have no contingent liabilities for covered claims, other than liabilities for unpaid
premiums, retrospective premiums, or assessments, if assets
of the program are insufficient to cover the program's liabilities; and
(9) The program shall obtain approval from the state risk
manager in accordance with this chapter and shall remain in
compliance with the provisions of this chapter, except to the
extent that such provisions are modified by or inconsistent
with this section. [1991 sp.s. c 30 § 8.]
48.62.091
48.62.091 Program approval or disapproval—Procedures—Annual report. (1) Within one hundred twenty days
of receipt of a plan of management and operation, the state
risk manager shall either approve or disapprove the formation
of the self-insurance program after reviewing the plan to
determine whether the proposed program complies with this
chapter and all rules adopted in accordance with this chapter.
(2) If the state risk manager denies a request for
approval, the state risk manager shall specify in detail the reasons for denial and the manner in which the program fails to
meet the requirements of this chapter or any rules adopted in
accordance with this chapter.
[Title 48 RCW—page 337]
48.62.101
Title 48 RCW: Insurance
(3) Whenever the state risk manager determines that a
joint self-insurance program covering property or liability
risks or an individual or joint self-insured health and welfare
benefits program is in violation of this chapter or is operating
in an unsafe financial condition, the state risk manager may
issue and serve upon the program an order to cease and desist
from the violation or practice.
(a) The state risk manager shall deliver the order to the
appropriate entity or entities directly or mail it to the appropriate entity or entities by registered mail with return receipt
requested.
(b) If the program violates the order or has not taken
steps to comply with the order after the expiration of twenty
days after the cease and desist order has been received by the
program, the program is deemed to be operating in violation
of this chapter, and the state risk manager shall notify the
state auditor and the attorney general of the violation.
(c) After hearing or with the consent of a program governed by this chapter and in addition to or in lieu of a continuation of the cease and desist order, the risk manager may
levy a fine upon the program in an amount not less than three
hundred dollars and not more than ten thousand dollars. The
order levying such fine shall specify the period within which
the fine shall be fully paid. The period within which such
fines shall be paid shall not be less than fifteen nor more than
thirty days from the date of such order. Upon failure to pay
any such fine when due the risk manager shall request the
attorney general to bring a civil action on the risk manager's
behalf to collect the fine. The risk manager shall pay any fine
so collected to the state treasurer for the account of the general fund.
(4) Each self-insurance program approved by the state
risk manager shall annually file a report with the state risk
manager and state auditor providing:
(a) Details of any changes in the articles of incorporation, bylaws, or interlocal agreement;
(b) Copies of all the insurance coverage documents;
(c) A description of the program structure, including participants' retention, program retention, and excess insurance
limits and attachment point;
(d) An actuarial analysis, if required;
(e) A list of contractors and service providers;
(f) The financial and loss experience of the program; and
(g) Such other information as required by rule of the
state risk manager.
(5) No self-insurance program requiring the state risk
manager's approval may engage in an act or practice that in
any respect significantly differs from the management and
operation plan that formed the basis for the state risk manager's approval of the program unless the program first notifies the state risk manager in writing and obtains the state risk
manager's approval. The state risk manager shall approve or
disapprove the proposed change within sixty days of receipt
of the notice. If the state risk manager denies a requested
change, the risk manager shall specify in detail the reasons
for denial and the manner in which the program would fail to
meet the requirements of this chapter or any rules adopted in
accordance with this chapter. [1991 sp.s. c 30 § 9.]
48.62.101 Access to information—Executive sessions—Public disclosure act. (1) All self-insurance pro48.62.101
[Title 48 RCW—page 338]
grams governed by this chapter may provide for executive
sessions in accordance with chapter 42.30 RCW to consider
litigation and settlement of claims when it appears that public
discussion of these matters would impair the program's ability to conduct its business effectively.
(2) Notwithstanding any provision to the contrary contained in the public disclosure act, chapter 42.17 RCW, in a
claim or action against the state or a local government entity,
no person is entitled to discover that portion of any funds or
liability reserve established for purposes of satisfying a claim
or cause of action, except that the reserve is discoverable in a
supplemental or ancillary proceeding to enforce a judgment.
All other records of individual or joint self-insurance programs are subject to disclosure in accordance with chapter
42.17 RCW.
(3) In accordance with chapter 42.17 RCW, bargaining
groups representing local government employees shall have
reasonable access to information concerning the experience
and performance of any health and welfare benefits program
established for the benefit of such employees. [1991 sp.s. c
30 § 10.]
48.62.111
48.62.111 Investments—Designated treasurer—
Deposit requirements—Bond. (1) The assets of a joint selfinsurance program governed by this chapter may be invested
only in accordance with the general investment authority that
participating local government entities possess as a governmental entity.
(2) Except as provided in subsection (3) of this section, a
joint self-insurance program may invest all or a portion of its
assets by depositing the assets with the treasurer of a county
within whose territorial limits any of its member local government entities lie, to be invested by the treasurer for the
joint program.
(3) Local government members of a joint self-insurance
program may by resolution of the program designate some
other person having experience in financial or fiscal matters
as treasurer of the program, if that designated treasurer is
located in Washington state. The program shall, unless the
program's treasurer is a county treasurer, require a bond
obtained from a surety company authorized to do business in
Washington in an amount and under the terms and conditions
that the program finds will protect against loss arising from
mismanagement or malfeasance in investing and managing
program funds. The program may pay the premium on the
bond.
All program funds must be paid to the treasurer and shall
be disbursed by the treasurer only on warrants issued by the
treasurer or a person appointed by the program and upon
orders or vouchers approved by the program or as authorized
under chapters 35A.40 and 42.24 RCW. The treasurer shall
establish a program account, into which shall be recorded all
program funds, and the treasurer shall maintain special
accounts as may be created by the program into which the
treasurer shall record all money as the program may direct by
resolution.
(4) The treasurer of the joint program shall deposit all
program funds in a public depository or depositories as
defined in RCW 39.58.010(2) and under the same restrictions, contracts, and security as provided for any participating
(2004 Ed.)
Local Government Insurance Transactions
local government entity, and the depository shall be designated by resolution of the program.
(5) A joint self-insurance program may invest all or a
portion of its assets by depositing the assets with the state
investment board, to be invested by the state investment
board in accordance with chapter 43.33A RCW. The state
investment board shall designate a manager for those funds to
whom the program may direct requests for disbursement
upon orders or vouchers approved by the program or as
authorized under chapters 35A.40 and 42.24 RCW.
(6) All interest and earnings collected on joint program
funds belong to the program and must be deposited to the
program's credit in the proper program account.
(7) A joint program may require a reasonable bond from
any person handling money or securities of the program and
may pay the premium for the bond.
(8) Subsections (3) and (4) of this section do not apply to
a multistate joint self-insurance program governed by RCW
48.62.081. [2003 c 248 § 20; 1991 sp.s. c 30 § 11.]
48.62.121 General operating regulations—Employee
remuneration—Governing control—School districts—
Use of agents and brokers—Health care services—Trusts.
(1) No employee or official of a local government entity may
directly or indirectly receive anything of value for services
rendered in connection with the operation and management
of a self-insurance program other than the salary and benefits
provided by his or her employer or the reimbursement of
expenses reasonably incurred in furtherance of the operation
or management of the program. No employee or official of a
local government entity may accept or solicit anything of
value for personal benefit or for the benefit of others under
circumstances in which it can be reasonably inferred that the
employee's or official's independence of judgment is
impaired with respect to the management and operation of
the program.
(2)(a) No local government entity may participate in a
joint self-insurance program in which local government entities do not retain complete governing control. This prohibition does not apply to:
(i) Local government contribution to a self-insured
employee health and welfare benefits plan otherwise authorized and governed by state statute;
(ii) Local government participation in a multistate joint
program where control is shared with local government entities from other states; or
(iii) Local government contribution to a self-insured
employee health and welfare benefit trust in which the local
government shares governing control with their employees.
(b) If a local government self-insured health and welfare
benefit program, established by the local government as a
trust, shares governing control of the trust with its employees:
(i) The local government must maintain at least a fifty
percent voting control of the trust;
(ii) No more than one voting, nonemployee, union representative selected by employees may serve as a trustee; and
(iii) The trust agreement must contain provisions for resolution of any deadlock in the administration of the trust.
(3) Moneys made available and moneys expended by
school districts and educational service districts for selfinsurance under this chapter are subject to such rules of the
48.62.121
(2004 Ed.)
48.62.131
superintendent of public instruction as the superintendent
may adopt governing budgeting and accounting. However,
the superintendent shall ensure that the rules are consistent
with those adopted by the state risk manager for the management and operation of self-insurance programs.
(4) RCW 48.30.140, 48.30.150, 48.30.155, and
48.30.157 apply to the use of agents and brokers by local
government self-insurance programs.
(5) Every individual and joint local government selfinsured health and welfare benefits program that provides
comprehensive coverage for health care services shall
include mandated benefits that the state health care authority
is required to provide under RCW 41.05.170 and 41.05.180.
The state risk manager may adopt rules identifying the mandated benefits.
(6) An employee health and welfare benefit program
established as a trust shall contain a provision that trust funds
be expended only for purposes of the trust consistent with
statutes and rules governing the local government or governments creating the trust. [1993 c 458 § 1; 1991 sp.s. c 30 §
12.]
Review of health care trusts—1993 c 458: "If chapter 492, Laws of
1993 is enacted into law, the provisions of chapter 48.62 RCW shall be
reviewed to evaluate the extent to which health care trusts provide benefits to
certain individuals in the state; and to review the federal laws that may constrain the organization or operation of these joint employee-employer entities. The health services commission shall make appropriate recommendations to the governor and the legislature as to how these trusts can be brought
under the provisions of chapter 492, Laws of 1993." [1993 c 458 § 3.]
48.62.123
48.62.123 Existing benefit program established as a
trust—Risk manager—Limited extension of deadline for
compliance. No local government self-insured employee
health and welfare benefit program established as a trust by a
local government entity or entities prior to July 25, 1993, may
continue in operation unless such program complies with the
provisions of this chapter within one hundred eighty days
after July 25, 1993. The state risk manager may extend such
period if the risk manager finds that such local government
entity or entities are making a good faith effort and taking all
necessary steps to comply with this chapter; however, in no
event may the risk manager extend the period required for
compliance more than ninety days after the expiration of the
initial one hundred eighty-day period. [1993 c 458 § 2.]
Review of health care trusts—1993 c 458: See note following RCW
48.62.121.
48.62.125
48.62.125 Educational service districts—Rules—
Superintendent of public instruction. All rules adopted by
the superintendent of public instruction by January 1, 1992,
that apply to self-insurance programs of educational service
districts remain in effect until expressly amended, repealed,
or superseded by the state risk manager or the state health
care authority. [1991 sp.s. c 30 § 31.]
48.62.131
48.62.131 Preexisting programs—Notice to state
auditor. Every local government entity that has established
a self-insurance program not subject to the prior approval
requirements of this chapter shall provide written notice to
the state auditor of the existence of the program. The notice
must identify the manager of the program and the class or
classes of risk self-insured. The notice must also identify all
[Title 48 RCW—page 339]
48.62.141
Title 48 RCW: Insurance
investments and distribution of assets of the program, the current depository of assets and the program's designation of
asset depository and investment agent as required by RCW
48.62.111. In addition, the local government entity shall
notify the state auditor whenever the program covers a new
class of risk or discontinues the self-insurance of a class of
risk. [1991 sp.s. c 30 § 13.]
48.62.141
48.62.141 Insufficient assets—Program requirement.
Every joint self-insurance program covering liability or property risks, excluding multistate programs governed by RCW
48.62.081, shall provide for the contingent liability of participants in the program if assets of the program are insufficient
to cover the program's liabilities. [1991 sp.s. c 30 § 14.]
48.62.151
48.62.151 Insurance premium taxes—Exemption. A
joint self-insurance program approved in accordance with
this chapter is exempt from insurance premium taxes, from
fees assessed under chapter 48.02 RCW, from chapters 48.32
and 48.32A RCW, from business and occupations taxes
imposed under chapter 82.04 RCW, and from any assigned
risk plan or joint underwriting association otherwise required
by law. This section does not apply to and no exemption is
provided for insurance companies issuing policies to cover
program risks, nor does it apply to or provide an exemption
for third-party administrators or brokers serving the selfinsurance program. [1991 sp.s. c 30 § 15.]
(2) The risk manager and the state auditor, and the agents
and employees of each, are immune from liability in any civil
action or suit arising from the publication of any report or
bulletins or arising from dissemination of information related
to the official activities of the risk manager, the advisory
boards, or the state auditor, unless actual malice, fraud, or bad
faith is shown.
(3) The immunity granted by this section is in addition to
any common law or statutory privilege or immunity enjoyed
by such person, and nothing in this section is intended to
abrogate or modify in any way such common law or statutory
privilege or immunity. [1991 sp.s. c 30 § 17.]
48.62.900
48.62.900 Effective date, implementation, application—1991 sp.s. c 30. (1) This act shall take effect January
1, 1992, but the state risk manager shall take all steps necessary to implement this act on its effective date.
(2) Every individual local government self-insured
employee health and welfare plan and self-insurance program
that has been in continuous operation for at least one year
before January 1, 1992, need not obtain approval to continue
operations until January 1, 1993, but must comply with all
other provisions of this act.
(3) Local government entity authority to self-insure
employee health and welfare benefits applies retroactively to
1979. [1991 sp.s. c 30 § 30.]
48.62.901
48.62.161
48.62.161 Establishment of fee to cover costs—
Boards—State risk manager. (1) The state risk manager
shall establish and charge an investigation fee in an amount
necessary to cover the costs for the initial review and
approval of a self-insurance program. The fee must accompany the initial submission of the plan of operation and management.
(2) The costs of subsequent reviews and investigations
shall be charged to the self-insurance program being
reviewed or investigated in accordance with the actual time
and expenses incurred in the review or investigation.
(3) After the formation of the two advisory boards, each
board may calculate, levy, and collect from each joint property and liability self-insurance program and each individual
and joint health and welfare benefit program regulated by this
chapter a start-up assessment to pay initial expenses and
operating costs of the boards and the risk manager's office in
administering this chapter. Any program failing to remit its
assessment when due is subject to denial of permission to
operate or to a cease and desist order until the assessment is
paid. [1991 sp.s. c 30 § 16.]
48.62.171
48.62.171 Dissemination of information—Civil
immunity. (1) Any person who files reports or furnishes
other information required under Title 48 RCW, required by
the risk manager or the state auditor under authority granted
by Title 48 RCW, or which is useful to the risk manager or
the state auditor in the administration of Title 48 RCW, shall
be immune from liability in any civil action or suit arising
from the filing of any such report or furnishing such information to the risk manager or to the state auditor, unless actual
malice, fraud, or bad faith is shown.
[Title 48 RCW—page 340]
48.62.901 Severability—1991 sp.s. c 30. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not
affected. [1991 sp.s. c 30 § 32.]
Chapter 48.66 RCW
MEDICARE SUPPLEMENTAL HEALTH
INSURANCE ACT
Chapter 48.66
Sections
48.66.010
48.66.020
48.66.030
48.66.035
48.66.041
48.66.045
48.66.050
48.66.055
48.66.060
48.66.070
48.66.080
48.66.090
48.66.100
48.66.110
48.66.120
48.66.130
48.66.140
48.66.150
48.66.160
48.66.165
48.66.900
48.66.910
Short title—Intent—Application of chapter.
Definitions.
Renewability—Benefit standards—Benefit limitations.
Commissioner's approval required.
Minimum standards required by rule—Waiver.
Mandated coverage for replacement policies—Rates on a
community-rated basis.
Policy or certificate provisions prohibited by rule—Waivers
restricted.
Termination or disenrollment—Application for coverage—
Eligible persons—Types of policies.
Equal coverage of sickness and accidents.
Adjustment of benefits and premiums for medicare cost-sharing.
"Benefit period"—"Medicare benefit period"—Minimum
requirements.
Guaranteed renewable—Exceptions.
Loss ratio requirements—Mass sales practices of individual
policies.
Disclosure by insurer—Outline of coverage required.
Return of policy and refund of premium—Notice required—
Effect of return.
Preexisting condition limitations.
Medical history.
Reporting and recordkeeping, separate data required.
Federal law supersedes.
Conformity with federal law—Rules.
Severability—1981 c 153.
Effective date—1981 c 153.
(2004 Ed.)
Medicare Supplemental Health Insurance Act
48.66.010
48.66.010 Short title—Intent—Application of chapter. This chapter shall be known and may be cited as "The
Medicare Supplemental Health Insurance Act" and is
intended to govern the content and sale of medicare supplemental insurance as defined in this chapter. The provisions of
this chapter shall apply in addition to, rather than in place of,
other requirements of Title 48 RCW. [1981 c 153 § 1.]
48.66.020
48.66.020 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Medicare supplemental insurance" or "medicare
supplement insurance policy" refers to a group or individual
policy of disability insurance or a subscriber contract of a
health care service contractor, a health maintenance organization, or a fraternal benefit society, which relates its benefits
to medicare, or which is advertised, marketed, or designed
primarily as a supplement to reimbursements under medicare
for the hospital, medical, or surgical expenses of persons eligible for medicare. Such term does not include:
(a) A policy or contract of one or more employers or
labor organizations, or of the trustees of a fund established by
one or more employers or labor organizations, or combination thereof, for employees or former employees, or combination thereof, or for members or former members, or combination thereof, of the labor organizations; or
(b) A policy issued pursuant to a contract under Section
1876 of the federal social security act (42 U.S.C. Sec. 1395 et
seq.), or an issued policy under a demonstration specified in
42 U.S.C. Sec. 1395(g)(1); or
(c) Insurance policies or health care benefit plans,
including group conversion policies, provided to medicare
eligible persons, that are not marketed or held to be medicare
supplement policies or benefit plans.
(2) "Medicare" means the "Health Insurance for the
Aged Act," Title XVIII of the Social Security Amendments
of 1965, as then constituted or later amended.
(3) "Medicare eligible expenses" means health care
expenses of the kinds covered by medicare, to the extent recognized as reasonable and medically necessary by medicare.
(4) "Applicant" means:
(a) In the case of an individual medicare supplement
insurance policy or subscriber contract, the person who seeks
to contract for insurance benefits; and
(b) In the case of a group medicare supplement insurance
policy or subscriber contract, the proposed certificate holder.
(5) "Certificate" means any certificate delivered or
issued for delivery in this state under a group medicare supplement insurance policy.
(6) "Loss ratio" means the incurred claims as a percentage of the earned premium computed under rules adopted by
the insurance commissioner.
(7) "Preexisting condition" means a covered person's
medical condition that caused that person to have received
medical advice or treatment during a specified time period
immediately prior to the effective date of coverage.
(8) "Disclosure form" means the form designated by the
insurance commissioner which discloses medicare benefits,
the supplemental benefits offered by the insurer, and the
remaining amount for which the insured will be responsible.
(2004 Ed.)
48.66.041
(9) "Issuer" includes insurance companies, health care
service contractors, health maintenance organizations, fraternal benefit societies, and any other entity delivering or issuing for delivery medicare supplement policies or certificates
to a resident of this state. [1996 c 269 § 1; 1995 c 85 § 1;
1992 c 138 § 1; 1981 c 153 § 2.]
Effective date—1996 c 269: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[March 29, 1996]." [1996 c 269 § 2.]
48.66.030
48.66.030 Renewability—Benefit standards—Benefit
limitations. (1) A medicare supplement insurance policy
which provides for the payment of benefits may not be based
on standards described as "usual and customary," "reasonable
and customary," or words of similar import.
(2) Limitations on benefits, such as policy exclusions or
waiting periods, shall be labeled in a separate section of the
policy or placed with the benefit provisions to which they
apply, rather than being included in other sections of the policy, rider, or endorsement. [1992 c 138 § 2; 1981 c 153 § 3.]
48.66.035
48.66.035 Commissioner's approval required. (1) A
medicare supplement insurance policy or certificate form or
application form, rider, or endorsement shall not be issued,
delivered, or used unless it has been filed with and approved
by the commissioner.
(2) Rates, or modification of rates, for medicare supplement policies or certificates shall not be used until filed with
and approved by the commissioner.
(3) Every filing shall be received not less than thirty days
in advance of any such issuance, delivery, or use. At the expiration of such thirty days the form or rate so filed shall be
deemed approved unless prior thereto it has been affirmatively approved or disapproved by order of the commissioner.
The commissioner may extend by not more than an additional fifteen days the period within which he or she may
affirmatively approve or disapprove any such form or rate, by
giving notice of such extension before expiration of the initial
thirty-day waiting period. At the expiration of any such
period as so extended, and in the absence of such prior affirmative approval or disapproval, any such form or rate shall
be deemed approved. A filing of a form or rate or modification thereto may not be deemed approved unless the filing
contains all required documents prescribed by the commissioner. The commissioner may withdraw any such approval
at any time for cause. By approval of any such form or rate
for immediate use, the commissioner may waive any unexpired portion of such initial thirty-day waiting period.
(4) The commissioner's order disapproving any such
form or rate or withdrawing a previous approval shall state
the grounds therefor.
(5) A form or rate shall not knowingly be issued, delivered, or used if the commissioner's approval does not then
exist. [1992 c 138 § 3.]
48.66.041
48.66.041 Minimum standards required by rule—
Waiver. (1) The insurance commissioner shall adopt rules to
establish minimum standards for benefits in medicare supplement insurance policies and certificates.
[Title 48 RCW—page 341]
48.66.045
Title 48 RCW: Insurance
(2) The commissioner shall adopt rules to establish specific standards for medicare supplement insurance policy or
certificate provisions. These rules may include but are not
limited to:
(a) Terms of renewability;
(b) Nonduplication of coverage;
(c) Benefit limitations, exceptions, and reductions;
(d) Definitions of terms;
(e) Requiring refunds or credits if the policies or certificates do not meet loss ratio requirements;
(f) Establishing uniform methodology for calculating
and reporting loss ratios;
(g) Assuring public access to policies, premiums, and
loss ratio information of an issuer of medicare supplement
insurance;
(h) Establishing a process for approving or disapproving
proposed premium increases; and
(i) Establishing standards for medicare SELECT policies
and certificates.
(3) The insurance commissioner may adopt rules that
establish disclosure standards for replacement of policies or
certificates by persons eligible for medicare.
(4) The insurance commissioner may by rule prescribe
that an informational brochure, designed to improve the
buyer's understanding of medicare and ability to select the
most appropriate coverage, be provided to persons eligible
for medicare by reason of age. The commissioner may
require that the brochure be provided to applicants concurrently with delivery of the outline of coverage, except with
respect to direct response insurance, when the brochure may
be provided upon request but no later than the delivery of the
policy.
(5) In the case of a state or federally qualified health
maintenance organization, the commissioner may waive
compliance with one or all provisions of this section until
January 1, 1983. [1993 c 388 § 1; 1992 c 138 § 4; 1982 c 200
§ 1.]
48.66.045 Mandated coverage for replacement policies—Rates on a community-rated basis. Every issuer of a
medicare supplement insurance policy or certificate providing coverage to a resident of this state issued on or after January 1, 1996, shall:
(1) Issue coverage under its standardized benefit plans B,
C, D, E, F, and G without evidence of insurability to any resident of this state who is eligible for both medicare hospital
and physician services by reason of age or by reason of disability or end-stage renal disease, if the medicare supplement
policy replaces another medicare supplement standardized
benefit plan policy or certificate B, C, D, E, F, or G, or other
more comprehensive coverage than the replacing policy;
(2) Issue coverage under its standardized plans A, H, I,
and J without evidence of insurability to any resident of this
state who is eligible for both medicare hospital and physician
services by reason of age or by reason of disability or endstage renal disease, if the medicare supplement policy
replaces another medicare supplement policy or certificate
which is the same standardized plan as the replaced policy;
and
(3) Set rates only on a community-rated basis. Premiums
shall be equal for all policyholders and certificate holders
48.66.045
[Title 48 RCW—page 342]
under a standardized medicare supplement benefit plan form,
except that an issuer may vary premiums based on spousal
discounts, frequency of payment, and method of payment
including automatic deposit of premiums and may develop
no more than two rating pools that distinguish between an
insured's eligibility for medicare by reason of:
(a) Age; or
(b) Disability or end-stage renal disease. [2004 c 83 § 1;
1999 c 334 § 1; 1995 c 85 § 3.]
Severability—2004 c 83: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [2004 c 83 § 2.]
Effective date—2004 c 83: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[March 22, 2004]." [2004 c 83 § 3.]
Effective date—1999 c 334: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[May 14, 1999]." [1999 c 334 § 2.]
48.66.050
48.66.050 Policy or certificate provisions prohibited
by rule—Waivers restricted. (1) The insurance commissioner may issue reasonable rules that specify prohibited policy provisions not otherwise specifically authorized by statute which, in the opinion of the commissioner, are unfair,
unjust, or unfairly discriminatory to any person insured or
proposed to be insured under a medicare supplement insurance policy or certificate.
(2) No medicare supplement insurance policy may use
waivers to exclude, limit, or reduce coverage or benefits for
specifically named or described preexisting diseases or physical conditions. [1992 c 138 § 5; 1981 c 153 § 5.]
48.66.055
48.66.055 Termination or disenrollment—Application for coverage—Eligible persons—Types of policies.
(1) Under this section, persons eligible for a medicare supplement policy or certificate are those individuals described in
subsection (3) of this section who, subject to subsection
(3)(b)(ii) of this section, apply to enroll under the policy not
later than sixty-three days after the date of the termination of
enrollment described in subsection (3) of this section, and
who submit evidence of the date of termination or disenrollment with the application for a medicare supplement policy.
(2) With respect to eligible persons, an issuer may not
deny or condition the issuance or effectiveness of a medicare
supplement policy described in subsection (4) of this section
that is offered and is available for issuance to new enrollees
by the issuer, shall not discriminate in the pricing of such a
medicare supplement policy because of health status, claims
experience, receipt of health care, or medical condition, and
shall not impose an exclusion of benefits based on a preexisting condition under such a medicare supplement policy.
(3) "Eligible persons" means an individual that meets the
requirements of (a), (b), (c), (d), (e), or (f) of this subsection,
as follows:
(a) The individual is enrolled under an employee welfare
benefit plan that provides health benefits that supplement the
benefits under medicare; and the plan terminates, or the plan
ceases to provide all such supplemental health benefits to the
individual;
(2004 Ed.)
Medicare Supplemental Health Insurance Act
(b)(i) The individual is enrolled with a medicare+choice
organization under a medicare+choice plan under part C of
medicare, and any of the following circumstances apply, or
the individual is sixty-five years of age or older and is
enrolled with a program of all inclusive care for the elderly
(PACE) provider under section 1894 of the social security
act, and there are circumstances similar to those described in
this subsection (3)(b) that would permit discontinuance of the
individual's enrollment with the provider if the individual
were enrolled in a medicare+choice plan:
(A) The certification of the organization or plan under
this subsection (3)(b) has been terminated, or the organization or plan has notified the individual of an impending termination of such a certification;
(B) The organization has terminated or otherwise discontinued providing the plan in the area in which the individual resides, or has notified the individual of an impending termination or discontinuance of such a plan;
(C) The individual is no longer eligible to elect the plan
because of a change in the individual's place of residence or
other change in circumstances specified by the secretary of
the United States department of health and human services,
but not including termination of the individual's enrollment
on the basis described in section 1851(g)(3)(B) of the federal
social security act (where the individual has not paid premiums on a timely basis or has engaged in disruptive behavior
as specified in standards under section 1856 of the federal
social security act), or the plan is terminated for all individuals within a residence area;
(D) The individual demonstrates, in accordance with
guidelines established by the secretary of the United States
department of health and human services, that:
(I) The organization offering the plan substantially violated a material provision of the organization's contract under
this part in relation to the individual, including the failure to
provide an enrollee on a timely basis medically necessary
care for which benefits are available under the plan or the
failure to provide such covered care in accordance with applicable quality standards; or
(II) The organization, an agent, or other entity acting on
the organization's behalf materially misrepresented the plan's
provisions in marketing the plan to the individual; or
(E) The individual meets other exceptional conditions as
the secretary of the United States department of health and
human services may provide.
(ii)(A) An individual described in (b)(i) of this subsection may elect to apply (a) of this subsection by substituting,
for the date of termination of enrollment, the date on which
the individual was notified by the medicare+choice organization of the impending termination or discontinuance of the
medicare+choice plan it offers in the area in which the individual resides, but only if the individual disenrolls from the
plan as a result of such notification.
(B) In the case of an individual making the election
under (b)(ii)(A) of this subsection, the issuer involved shall
accept the application of the individual submitted before the
date of termination of enrollment, but the coverage under
subsection (1) of this section shall only become effective
upon termination of coverage under the medicare+choice
plan involved;
(c)(i) The individual is enrolled with:
(2004 Ed.)
48.66.055
(A) An eligible organization under a contract under section 1876 (medicare risk or cost);
(B) A similar organization operating under demonstration project authority, effective for periods before April 1,
1999;
(C) An organization under an agreement under section
1833(a)(1)(A) (health care prepayment plan); or
(D) An organization under a medicare select policy; and
(ii) The enrollment ceases under the same circumstances
that would permit discontinuance of an individual's election
of coverage under (b)(i) of this subsection;
(d) The individual is enrolled under a medicare supplement policy and the enrollment ceases because:
(i)(A) Of the insolvency of the issuer or bankruptcy of
the nonissuer organization; or
(B) Of other involuntary termination of coverage or
enrollment under the policy;
(ii) The issuer of the policy substantially violated a material provision of the policy; or
(iii) The issuer, an agent, or other entity acting on the
issuer's behalf materially misrepresented the policy's provisions in marketing the policy to the individual;
(e)(i) The individual was enrolled under a medicare supplement policy and terminates enrollment and subsequently
enrolls, for the first time, with any medicare+choice organization under a medicare+choice plan under part C of medicare, any eligible organization under a contract under section
1876 (medicare risk or cost), any similar organization operating under demonstration project authority, any PACE program under section 1894 of the social security act, an organization under an agreement under section 1833(a)(1)(A)
(health care prepayment plan), or a medicare select policy;
and
(ii) The subsequent enrollment under (e)(i) of this subsection is terminated by the enrollee during any period within
the first twelve months of such subsequent enrollment (during which the enrollee is permitted to terminate such subsequent enrollment under section 1851(e) of the federal social
security act); or
(f) The individual, upon first becoming eligible for benefits under part A of medicare at age sixty-five, enrolls in a
medicare+choice plan under part C of medicare, or in a
PACE program under section 1894, and disenrolls from the
plan or program by not later than twelve months after the
effective date of enrollment.
(4) An eligible person under subsection (3) of this section is entitled to a medicare supplement policy as follows:
(a) A person eligible under subsection (3)(a), (b), (c), and
(d) of this section is entitled to a medicare supplement policy
that has a benefit package classified as plan A through G
offered by any issuer;
(b) A person eligible under subsection (3)(e) of this section is entitled to the same medicare supplement policy in
which the individual was most recently previously enrolled,
if available from the same issuer, or, if not so available, a policy described in (a) of this subsection; and
(c) A person eligible under subsection (3)(f) of this section is entitled to any medicare supplement policy offered by
any issuer.
(5)(a) At the time of an event described in subsection (3)
of this section, and because of which an individual loses cov[Title 48 RCW—page 343]
48.66.060
Title 48 RCW: Insurance
erage or benefits due to the termination of a contract, agreement, policy, or plan, the organization that terminates the
contract or agreement, the issuer terminating the policy, or
the administrator of the plan being terminated, respectively,
must notify the individual of his or her rights under this section, and of the obligations of issuers of medicare supplement
policies under subsection (1) of this section. The notice must
be communicated contemporaneously with the notification of
termination.
(b) At the time of an event described in subsection (3) of
this section, and because of which an individual ceases
enrollment under a contract, agreement, policy, or plan, the
organization that offers the contract or agreement, regardless
of the basis for the cessation of enrollment, the issuer offering
the policy, or the administrator of the plan, respectively, must
notify the individual of his or her rights under this section,
and of the obligations of issuers of medicare supplement policies under subsection (1) of this section. The notice must be
communicated within ten working days of the issuer receiving notification of disenrollment. [2002 c 300 § 4.]
48.66.060
48.66.060 Equal coverage of sickness and accidents.
A medicare supplement insurance policy may not indemnify
against losses resulting from sickness on a different basis
than losses resulting from accidents. [1981 c 153 § 6.]
(a) At least seventy-five percent of the aggregate amount
of premiums earned in the case of group policies; and
(b) At least sixty-five percent of the aggregate amount of
premiums earned in the case of individual policies.
(2) For the purpose of this section, medicare supplement
insurance policies issued as a result of solicitation of individuals through the mail or mass media advertising, including
both print and broadcast advertising, shall be treated as individual policies.
(3) The insurance commissioner may adopt rules sufficient to accomplish the provisions of this section and may, by
such rules, impose more stringent or appropriate loss ratio
requirements when it is necessary for the protection of the
public interest. [1992 c 138 § 7; 1982 c 200 § 2; 1981 c 153
§ 10.]
48.66.110
48.66.110 Disclosure by insurer—Outline of coverage required. In order to provide for full and fair disclosure
in the sale of medicare supplement policies, a medicare supplement policy or certificate shall not be delivered in this
state unless an outline of coverage is delivered to the potential policyholder not later than the time of application for the
policy. [1992 c 138 § 8; 1981 c 153 § 11.]
48.66.120
48.66.070
48.66.070 Adjustment of benefits and premiums for
medicare cost-sharing. A medicare supplement insurance
policy must provide that benefits designed to cover cost-sharing amounts under medicare will be changed automatically to
coincide with any changes in the applicable medicare deductible amount and copayment percentage factors. Premiums
may be modified to correspond with such changes. [1981 c
153 § 7.]
48.66.080
48.66.080 "Benefit period"—"Medicare benefit
period"—Minimum requirements. "Benefit period" or
"medicare benefit period" may not be defined more restrictively than as defined in the medicare program. [1981 c 153
§ 8.]
48.66.090
48.66.090 Guaranteed renewable—Exceptions. All
medicare supplement policies must be guaranteed renewable
and a medicare supplement insurance policy may not provide
that the policy may be cancelled or nonrenewed by the
insurer solely on the grounds of deterioration of health. The
issuer shall not cancel or nonrenew the policy for any reason
other than nonpayment of premium or material misrepresentation. All medicare supplement policies and certificates
must include a renewal or continuation provision. The language or specifications of such provision must be
appropriately captioned, appear on the first page of the policy, and shall include any reservation by the issuer or a right
to change premium. [1992 c 138 § 6; 1981 c 153 § 9.]
48.66.100
48.66.100 Loss ratio requirements—Mass sales practices of individual policies. (1) Medicare supplement insurance policies shall return to policyholders in the form of
aggregate benefits under the policy, for the entire period for
which rates are computed to provide coverage, loss ratios of:
[Title 48 RCW—page 344]
48.66.120 Return of policy and refund of premium—
Notice required—Effect of return. Every individual medicare supplement insurance policy issued after January 1,
1982, and every certificate issued pursuant to a group medicare supplement policy after January 1, 1982, shall have
prominently displayed on the first page of the policy form or
certificate a notice stating in substance that the person to
whom the policy or certificate is issued shall be permitted to
return the policy or certificate within thirty days of its delivery to the purchaser and to have the premium refunded if,
after examination of the policy or certificate, the purchaser is
not satisfied with it for any reason. An additional ten percent
penalty shall be added to any premium refund due which is
not paid within thirty days of return of the policy to the
insurer or agent. If a policyholder or purchaser, pursuant to
such notice, returns the policy or certificate to the insurer at
its home or branch office or to the agent through whom it was
purchased, it shall be void from the beginning and the parties
shall be in the same position as if no policy or certificate had
been issued. [1983 1st ex.s. c 32 § 12; 1982 c 200 § 3; 1981
c 153 § 12.]
48.66.130
48.66.130 Preexisting condition limitations. (1) On or
after January 1, 1996, and notwithstanding any other provision of Title 48 RCW, a medicare supplement policy or certificate shall not exclude or limit benefits for losses incurred
more than three months from the effective date of coverage
because it involved a preexisting condition.
(2) On or after January 1, 1996, a medicare supplement
policy or certificate shall not define a preexisting condition
more restrictively than as a condition for which medical
advice was given or treatment was recommended by or
received from a physician, or other health care provider acting within the scope of his or her license, within three months
before the effective date of coverage.
(2004 Ed.)
Health Care Savings Account Act
(3) If a medicare supplement insurance policy or certificate contains any limitations with respect to preexisting conditions, such limitations must appear as a separate paragraph
of the policy or certificate and be labeled as "Preexisting
Condition Limitations."
(4) No exclusion or limitation of preexisting conditions
may be applied to policies or certificates replaced in accordance with the provisions of RCW 48.66.045 if the policy or
certificate replaced had been in effect for at least three
months. [2002 c 300 § 3; 1995 c 85 § 2; 1992 c 138 § 9; 1981
c 153 § 13.]
48.66.140
48.66.140 Medical history. Any time that completion
of a medical history of a patient is required in order for an
application for a medicare supplement insurance policy to be
accepted, that medical history must be completed by the
applicant, a relative of the applicant, a legal guardian of the
applicant, or a physician. [1981 c 153 § 14.]
48.66.150
48.66.150 Reporting and recordkeeping, separate
data required. Commencing with reports for accounting
periods beginning on or after January 1, 1982, insurers,
health care service contractors, health maintenance organizations, and fraternal benefit societies shall, for reporting and
recordkeeping purposes, separate data concerning medicare
supplement insurance policies and contracts from data concerning other disability insurance policies and contracts.
[1981 c 153 § 15.]
48.66.160
48.66.160 Federal law supersedes. In any case where
the provisions of this chapter conflict with provisions of the
"Health Insurance For The Aged Act," Title XVIII of the
Social Security Amendments of 1965, or any amendments
thereto or regulations promulgated thereunder, regarding any
contract between the secretary of health and human services
and a health maintenance organization, the provisions of the
"Health Insurance For The Aged Act" shall supersede and be
paramount. [1981 c 153 § 16.]
48.66.165
48.66.165 Conformity with federal law—Rules. The
commissioner may adopt, from time-to-time, such rules as
are necessary with respect to medicare supplemental insurance to conform Washington policies, contracts, certificates,
standards, and practices to the requirements of federal law,
specifically including 42 U.S.C. Sec. 1395ss, and federal regulations adopted thereunder. [1991 c 120 § 1.]
48.66.900
48.66.900 Severability—1981 c 153. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1981 c 153 § 17.]
Chapter 48.68
48.68.010
Chapter 48.68 RCW
HEALTH CARE SAVINGS ACCOUNT ACT
Sections
48.68.005
48.68.010
Intent—Health care savings accounts authorized.
Duties of governor and responsible agencies—Chapter to
remain in effect.
48.68.005
48.68.005 Intent—Health care savings accounts
authorized. (1) This chapter shall be known as the health
care savings account act.
(2) The legislature recognizes that the costs of health
care are increasing rapidly and most individuals are removed
from participating in the purchase of their health care.
As a result, it becomes critical to encourage and support
solutions to alleviate the demand for diminishing state
resources. In response to these increasing costs in health care
spending, the legislature intends to clarify that health care
savings accounts may be offered as health benefit options to
all residents as incentives to reduce unnecessary health services utilization, administration, and paperwork, and to
encourage individuals to be in charge of and participate
directly in their use of service and health care spending. To
alleviate the possible impoverishment of residents requiring
long-term care, health care savings accounts may promote
savings for long-term care and provide incentives for individuals to protect themselves from financial hardship due to a
long-term health care need.
(3) Health care savings accounts are authorized in Washington state as options to employers and residents. [1995 c
265 § 2.]
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
48.68.010
48.68.010 Duties of governor and responsible agencies—Chapter to remain in effect. The governor and
responsible agencies shall:
(1) Request that the United States congress amend the
internal revenue code to treat premiums and contributions to
health benefits plans, such as health care savings account programs, basic health plans, conventional and standard health
plans offered through a health carrier, by employers, selfemployed persons, and individuals, as fully excluded
employer expenses and deductible from individual adjusted
gross income for federal tax purposes.
(2) Request that the United States congress amend the
internal revenue code to exempt from federal income tax
interest that accrues in health care savings accounts until such
money is withdrawn for expenditures other than eligible
health expenses as defined in law.
(3) If all federal statute or regulatory waivers necessary
to fully implement this chapter have not been obtained by
July 1, 1995, this chapter shall remain in effect. [1995 c 265
§ 3.]
48.66.910
48.66.910 Effective date—1981 c 153. This act shall
take effect January 1, 1982. [1981 c 153 § 19.]
(2004 Ed.)
Captions not law—Effective dates—Savings—Severability—1995 c
265: See notes following RCW 70.47.015.
[Title 48 RCW—page 345]
Chapter 48.70
Chapter 48.70
Title 48 RCW: Insurance
Chapter 48.70 RCW
SPECIFIED DISEASE INSURANCE ACT
ter shall not apply to services provided by health care service
contractors as defined in RCW 48.44.010. [1982 c 181 § 24.]
Sections
48.70.910
48.70.010
48.70.020
48.70.030
48.70.040
48.70.900
48.70.910
Legislative intent.
Definitions—Rules.
Expected returns to policyholders—Rules.
Rules required.
Application of chapter.
Severability—1982 c 181.
48.70.010
48.70.010 Legislative intent. This chapter shall be
known as the specified disease insurance act and is intended
to govern the content and sale of specified disease insurance
as defined in this chapter. This chapter applies in addition to,
rather than in place of, other requirements of Title 48 RCW.
It is the intent of the legislature to guarantee that specified
disease policies issued, delivered, or used in this state provide
a reasonable level of benefits to the policyholders. This chapter shall be applied broadly to ensure achievement of its aim.
[1982 c 181 § 20.]
48.70.910 Severability—1982 c 181. See note following RCW 48.03.010.
Chapter 48.74
Chapter 48.74 RCW
STANDARD VALUATION LAW
Sections
48.74.010
48.74.020
48.74.025
48.74.030
48.74.040
48.74.050
48.74.060
48.74.070
48.74.080
48.74.090
Short title—"NAIC" defined.
Valuation of reserve liabilities.
Reserves and related actuarial items—Opinion of a qualified
actuary—Requirements for the opinion—Rules.
Minimum standard for valuation.
Amount of reserves required.
Minimum aggregate reserves.
Other methods of reserve calculation.
Minimum reserve if gross premium less than valuation net premium.
Procedure when specified methods of reserve determination
unfeasible.
Valuation of disability insurance.
48.70.020
48.70.020 Definitions—Rules. Unless the context
clearly requires otherwise, the definitions in this section
apply throughout this chapter.
(1) "Specified disease policy" refers to any insurance
policy or contract which provides benefits to a policyholder
only in the event that the policyholder contracts the disease or
diseases specifically named in the policy.
(2) "Loss ratio" means the incurred claims as a percentage of the earned premium, computed under rules adopted by
the commissioner. Earned premiums and incurred claims
shall be computed under rules adopted by the commissioner.
[1982 c 181 § 21.]
48.70.030
48.70.030 Expected returns to policyholders—Rules.
(1) Commencing with reports for the accounting periods
beginning on or after July 1, 1983, specified disease policies
shall be expected to return to policyholders in the form of
aggregate loss ratios under the policy:
(a) At least seventy-five percent of the earned premiums
in the case of group policies; and
(b) At least sixty percent of the earned premiums in the
case of individual policies.
(2) For the purpose of this section, specified disease
insurance policies issued as a result of solicitation of individuals through the mail or mass media advertising, including
both print and broadcast advertising, shall be treated as individual policies.
(3) By July 1, 1983, the commissioner shall adopt rules
sufficient to accomplish the provisions of this section. [1982
c 181 § 22.]
48.70.040
48.70.040 Rules required. By July 1, 1983, the commissioner shall adopt all rules necessary to ensure that specified disease policies provide a reasonable level of benefits to
policyholders, and that purchasers and potential purchasers
of such policies are fully informed of the level of benefits
provided. [1982 c 181 § 23.]
48.70.900
48.70.900 Application of chapter. This chapter shall
apply to all policies issued on or after July 1, 1983. This chap[Title 48 RCW—page 346]
48.74.010
48.74.010 Short title—"NAIC" defined. This chapter
may be known and cited as the standard valuation law. As
used in this chapter, "NAIC" means the National Association
of Insurance Commissioners. [1982 1st ex.s. c 9 § 1.]
48.74.020
48.74.020 Valuation of reserve liabilities. The commissioner shall annually value, or cause to be valued, the
reserve liabilities, hereinafter called reserves, for all outstanding life insurance policies and annuity and pure endowment contracts of every life insurance company doing business in this state, and may certify the amount of any such
reserves, specifying the mortality table or tables, rate or rates
of interest, and methods, including net level premium method
or other, used in the calculation of such reserves. In calculating such reserves, the commissioner may use group methods
and approximate averages for fractions of a year or otherwise. In lieu of the valuation of the reserves herein required
of any foreign or alien company, the commissioner may
accept any valuation made, or caused to be made, by the
insurance supervisory official of any state or other jurisdiction when such valuation complies with the minimum standard provided in this chapter and if the official of such state
or jurisdiction accepts as sufficient and valid for all legal purposes the certificate of valuation of the commissioner when
such certificate states the valuation to have been made in a
specified manner according to which the aggregate reserves
would be at least as large as if they had been computed in the
manner prescribed by the law of that state or jurisdiction.
[1982 1st ex.s. c 9 § 2.]
48.74.025
48.74.025 Reserves and related actuarial items—
Opinion of a qualified actuary—Requirements for the
opinion—Rules. (1) Every life insurance company doing
business in this state shall annually submit the opinion of a
qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts specified by the commissioner by rule are computed appropriately, are based on assumptions that satisfy contractual provisions, are consistent with prior reported amounts, and comply
(2004 Ed.)
Standard Valuation Law
with applicable laws of this state. The commissioner by rule
shall define the specifics of this opinion and add any other
items deemed to be necessary to its scope.
(2)(a) Every life insurance company, except as exempted
by rule, shall also include in the opinion required under subsection (1) of this section an opinion as to whether the
reserves and related actuarial items held in support of the policies and contracts specified by the commissioner by rule,
when considered in light of the assets held by the company
with respect to the reserves and related actuarial items,
including but not limited to the investment earnings on the
assets and the considerations anticipated to be received and
retained under the policies and contracts, make adequate
provision for the company's obligations under the policies
and contracts, including but not limited to the benefits under
and expenses associated with the policies and contracts.
(b) The commissioner may provide by rule for a transition period for establishing higher reserves that the qualified
actuary may deem necessary in order to render the opinion
required by this section.
(3) Each opinion required under subsection (2) of this
section is governed by the following provisions:
(a) A memorandum, in form and substance acceptable to
the commissioner as specified by rule, must be prepared to
support each actuarial opinion.
(b) If the insurance company fails to provide a supporting memorandum at the request of the commissioner within a
period specified by rule or if the commissioner determines
that the supporting memorandum provided by the insurance
company fails to meet the standards prescribed by the rules or
is otherwise unacceptable to the commissioner, the commissioner may engage a qualified actuary at the expense of the
company to review the opinion and the basis for the opinion
and prepare such supporting memorandum as is required by
the commissioner.
(4) A memorandum in support of the opinion, and other
material provided by the company to the commissioner in
connection with it, must be kept confidential by the commissioner and may not be made public and is not subject to subpoena, other than for the purpose of defending an action seeking damages from any person by reason of an action required
by this section or by rules adopted under it. However, the
commissioner may otherwise release the memorandum or
other material (a) with the written consent of the company or
(b) to the American Academy of Actuaries upon request stating that the memorandum or other material is required for the
purpose of professional disciplinary proceedings and setting
forth procedures satisfactory to the commissioner for preserving the confidentiality of the memorandum or other
material. Once any portion of the confidential memorandum
is cited by the company in its marketing or is cited before any
governmental agency other than a state insurance department
or is released by the company to the news media, all portions
of the confidential memorandum are no longer confidential.
(5) Each opinion required under this section is governed
by the following provisions:
(a) The opinion must be submitted with the annual statement reflecting the valuation of the reserve liabilities for each
year ending on or after December 31, 1994.
(2004 Ed.)
48.74.030
(b) The opinion applies to all business in force, including
individual and group disability insurance, in form and substance acceptable to the commissioner as specified by rule.
(c) The opinion must be based on standards adopted by
the commissioner, who in setting the standards shall give due
regard to the standards established by the actuarial standards
board or its successors.
(d) In the case of an opinion required to be submitted by
a foreign or alien company, the commissioner may accept the
opinion filed by that company with the insurance supervisory
official of another state if the commissioner determines that
the opinion reasonably meets the requirements applicable to
a company domiciled in this state.
(e) For purposes of this section, "qualified actuary"
means a person who meets qualifications set by the commissioner with due regard to the qualifications established for
membership in the American Academy of Actuaries or its
successors.
(f) Except in cases of fraud or willful misconduct, the
qualified actuary is not liable for damages to any person,
other than the insurance company and the commissioner, for
any act, error, omission, decision, or conduct with respect to
the actuary's opinion.
(g) Rules adopted by the commissioner shall define disciplinary action by the commissioner against the company or
the qualified actuary. [1993 c 462 § 85.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.74.030
48.74.030 Minimum standard for valuation. (1)
Except as otherwise provided in subsections (2) and (3) of
this section, or in RCW 48.74.090, the minimum standard for
the valuation of all such policies and contracts issued prior to
July 10, 1982, shall be that provided by the laws in effect
immediately prior to such date. Except as otherwise provided
in subsections (2) and (3) of this section, or in RCW
48.74.090, the minimum standard for the valuation of all such
policies and contracts issued on or after July 10, 1982, shall
be the commissioner's reserve valuation methods defined in
RCW 48.74.040, 48.74.070, and 48.74.090, three and onehalf percent interest, or in the case of life insurance policies
and contracts, other than annuity and pure endowment contracts, issued on or after July 16, 1973, four percent interest
for such policies issued prior to September 1, 1979, five and
one-half percent interest for single premium life insurance
policies and four and one-half percent interest for all other
such policies issued on and after September 1, 1979, and the
following tables:
(a) For all ordinary policies of life insurance issued on
the standard basis, excluding any disability and accidental
death benefits in such policies—the commissioner's 1941
standard ordinary mortality table for such policies issued
prior to the operative date of *RCW 48.23.350(5a) and the
commissioner's 1958 standard ordinary mortality table for
such policies issued on or after such operative date and prior
to the operative date of RCW 48.76.050(4), except that for
any category of such policies issued on female risks, all modified net premiums and present values referred to in this chapter may be calculated according to an age not more than six
years younger than the actual age of the insured; and for such
policies issued on or after the operative date of RCW
[Title 48 RCW—page 347]
48.74.030
Title 48 RCW: Insurance
48.76.050(4): (i) The commissioner's 1980 standard ordinary
mortality table; or (ii) at the election of the company for any
one or more specified plans of life insurance, the commissioner's 1980 standard ordinary mortality table with ten-year
select mortality factors; or (iii) any ordinary mortality table,
adopted after 1980 by the National Association of Insurance
Commissioners, that is approved by regulation promulgated
by the commissioner for use in determining the minimum
standard of valuation for such policies.
(b) For all industrial life insurance policies issued on the
standard basis, excluding any disability and accidental death
benefits in such policies—the 1941 standard industrial mortality table for such policies issued prior to the operative date
of *RCW 48.23.350(5b), and for such policies issued on or
after such operative date the commissioner's 1961 standard
industrial mortality table or any industrial mortality table,
adopted after 1980 by the National Association of Insurance
Commissioners, that is approved by rule of the commissioner
for use in determining the minimum standard of valuation for
such policies.
(c) For individual annuity and pure endowment contracts, excluding any disability and accidental death benefits
in such policies—the 1937 standard annuity mortality table
or, at the option of the company, the annuity mortality table
for 1949, ultimate, or any modification of either of these
tables approved by the commissioner.
(d) For group annuity and pure endowment contracts,
excluding any disability and accidental death benefits in such
policies—the group annuity mortality table for 1951, any
modification of such table approved by the commissioner, or,
at the option of the company, any of the tables or modifications of tables specified for individual annuity and pure
endowment contracts.
(e) For total and permanent disability benefits in or supplementary to ordinary policies or contracts—for policies or
contracts issued on or after January 1, 1966, the tables of
period 2 disablement rates and the 1930 to 1950 termination
rates of the 1952 disability study of the Society of Actuaries,
with due regard to the type of benefit or any tables of disablement rates and termination rates, adopted after 1980 by the
National Association of Insurance Commissioners, that are
approved by regulation promulgated by the commissioner for
use in determining the minimum standard of valuation for
such policies; for policies or contracts issued on or after January 1, 1961, and prior to January 1, 1966, either such tables
or, at the option of the company, the class (3) disability table
(1926); and for policies issued prior to January 1, 1961, the
class (3) disability table (1926). Any such table shall, for
active lives, be combined with a mortality table permitted for
calculating the reserves for life insurance policies.
(f) For accidental death benefits in or supplementary to
policies—for policies issued on or after January 1, 1966, the
1959 accidental death benefits table or any accidental death
benefits table, adopted after 1980 by the National Association
of Insurance Commissioners, that is approved by regulation
promulgated by the commissioner for use in determining the
minimum standard of valuation for such policies; for policies
issued on or after January 1, 1961, and prior to January 1,
1966, either such table or, at the option of the company, the
intercompany double indemnity mortality table; and for policies issued prior to January 1, 1961, the intercompany double
[Title 48 RCW—page 348]
indemnity mortality table. Either table shall be combined
with a mortality table permitted for calculating the reserves
for life insurance policies.
(g) For group life insurance, life insurance issued on the
substandard basis and other special benefits—such tables as
may be approved by the commissioner.
(2) Except as provided in subsection (3) of this section,
the minimum standard for the valuation of all individual
annuity and pure endowment contracts issued on or after July
10, 1982, and for all annuities and pure endowments purchased on or after such effective date under group annuity
and pure endowment contracts, shall be the commissioner's
reserve valuation methods defined in RCW 48.74.040 and the
following tables and interest rates:
(a) For individual annuity and pure endowment contracts
issued before September 1, 1979, excluding any disability
and accidental death benefit in such contracts—the 1971
individual annuity mortality table, or any modification of this
table approved by the commissioner, and six percent interest
for single premium immediate annuity contracts, and four
percent interest for all other individual annuity and pure
endowment contracts.
(b) For individual single premium immediate annuity
contracts issued on or after September 1, 1979, excluding any
disability and accidental death benefits in such contracts—
the 1971 individual annuity mortality table or any individual
annuity mortality table, adopted after 1980 by the National
Association of Insurance Commissioners, that is approved by
regulation promulgated by the commissioner for use in determining the minimum standard of valuation for such contracts,
or any modification of these tables approved by the commissioner, and seven and one-half percent interest.
(c) For individual annuity and pure endowment contracts
issued on or after September 1, 1979, other than single premium immediate annuity contracts, excluding any disability
and accidental death benefits in such contracts—the 1971
individual annuity mortality table or any individual annuity
mortality table, adopted after 1980 by the National Association of Insurance Commissioners, that is approved by regulation promulgated by the commissioner for use in determining
the minimum standard of valuation for such contracts, or any
modification of these tables approved by the commissioner,
and five and one-half percent interest for single premium
deferred annuity and pure endowment contracts and four and
one-half percent interest for all other such individual annuity
and pure endowment contracts.
(d) For all annuities and pure endowments purchased
prior to September 1, 1979, under group annuity and pure
endowment contracts, excluding any disability and accidental
death benefits purchased under such contracts—the 1971
group annuity mortality table, or any modification of this
table approved by the commissioner, and six percent interest.
(e) For all annuities and pure endowments purchased on
or after September 1, 1979, under group annuity and pure
endowment contracts, excluding any disability and accidental
death benefits purchased under such contracts—the 1971
group annuity mortality table or any group annuity mortality
table, adopted after 1980 by the National Association of
Insurance Commissioners, that is approved by regulation
promulgated by the commissioner for use in determining the
minimum standard of valuation for such annuities and pure
(2004 Ed.)
Standard Valuation Law
endowments, or any modification of these tables approved by
the commissioner, and seven and one-half percent interest.
After July 16, 1973, any company may file with the commissioner a written notice of its election to comply with the
provisions of this section after a specified date before January
1, 1979, which shall be the operative date of this section for
such company. If a company makes no such election, the
operative date of this section for such company shall be January 1, 1979.
(3)(a) The interest rates used in determining the minimum standard for the valuation of:
(i) All life insurance policies issued in a particular calendar year, on or after the operative date of RCW 48.76.050(4);
(ii) All individual annuity and pure endowment contracts
issued in a particular calendar year on or after January 1,
1982;
(iii) All annuities and pure endowments purchased in a
particular calendar year on or after January 1, 1982, under
group annuity and pure endowment contracts; and
(iv) The net increase, if any, in a particular calendar year
after January 1, 1982, in amounts held under guaranteed
interest contracts shall be the calendar year statutory valuation interest rates as defined in this section.
(b) The calendar year statutory valuation interest rates, I,
shall be determined as follows and the results rounded to the
nearer one-quarter of one percent:
(i) For life insurance:
I = .03 + W (R1 - .03) + W/2 (R2 - .09);
(ii) For single premium immediate annuities and for
annuity benefits involving life contingencies arising from
other annuities with cash settlement options and from guaranteed interest contracts with cash settlement options:
I = .03 + W (R - .03)
where R1 is the lesser of R and .09,
R2 is the greater of R and .09,
R is the reference interest rate defined in this section, and
W is the weighting factor defined in this section;
(iii) For other annuities with cash settlement options and
guaranteed interest contracts with cash settlement options,
valued on an issue year basis, except as stated in (ii) of this
subparagraph, the formula for life insurance stated in (i) of
this subparagraph shall apply to annuities and guaranteed
interest contracts with guarantee durations in excess of ten
years and the formula for single premium immediate annuities stated in (ii) of this subparagraph shall apply to annuities
and guaranteed interest contracts with guarantee duration of
ten years or less;
(iv) For other annuities with no cash settlement options
and for guaranteed interest contracts with no cash settlement
options, the formula for single premium immediate annuities
stated in (ii) of this subparagraph shall apply;
(v) For other annuities with cash settlement options and
guaranteed interest contracts with cash settlement options,
valued on a change in fund basis, the formula for single premium immediate annuities stated in (ii) of this subparagraph
shall apply.
(c) However, if the calendar year statutory valuation
interest rate for any life insurance policies issued in any calendar year determined without reference to this sentence differs from the corresponding actual rate for similar policies
(2004 Ed.)
48.74.030
issued in the immediately preceding calendar year by less
than one-half of one percent, the calendar year statutory valuation interest rate for such life insurance policies shall be
equal to the corresponding actual rate for the immediately
preceding calendar year. For purposes of applying the immediately preceding sentence, the calendar year statutory valuation interest rate for life insurance policies issued in a calendar year shall be determined for 1983 using the reference
interest rate defined for 1982 and shall be determined for
each subsequent calendar year regardless of when RCW
48.76.050(4) becomes operative.
(d) The weighting factors referred to in the formulas
stated in subparagraph (b) of this subsection are given in the
following tables:
(i) Weighting Factors for Life Insurance:
Guarantee Duration
(Years)
10 or less
More than 10, but not more than 20
More than 20
Weighting
Factors
.50
.45
.35
For life insurance, the guarantee duration is the maximum number of years the life insurance can remain in force
on a basis guaranteed in the policy or under options to convert to plans of life insurance with premium rates or nonforfeiture values or both which are guaranteed in the original
policy;
(ii) Weighting factor for single premium immediate
annuities and for annuity benefits involving life contingencies arising from other annuities with cash settlement options
and guaranteed interest contracts with cash settlement
options: .80;
(iii) Weighting factors for other annuities and for guaranteed interest contracts, except as stated in (ii) of this subparagraph, shall be as specified in (d)(iii)(A), (B), and (C) of this
subsection, according to the rules and definitions in
(d)(iii)(D), (E), and (F) of this subsection:
(A) For annuities and guaranteed interest contracts valued on an issue year basis:
Guarantee Duration
Weighting Factor
for Plan Type
A
B
C
(Years)
5 or less:
More than 5, but not more than 10:
More than 10, but not more than 20:
More than 20:
.80
.75
.65
.45
.60
.60
.50
.35
.50
.50
.45
.35
(B) For annuities and guaranteed interest contracts valued on a change in fund basis, the factors shown in (d)(iii)(A)
of this subsection increased by:
A
Plan Type
B
C
.15
.25
.05
(C) For annuities and guaranteed interest contracts valued on an issue year basis other than those with no cash settlement options which do not guarantee interest on considerations received more than one year after issue or purchase
and for annuities and guaranteed interest contracts valued on
a change in fund basis which do not guarantee interest rates
[Title 48 RCW—page 349]
48.74.030
Title 48 RCW: Insurance
on considerations received more than twelve months beyond
the valuation date, the factors shown in (d)(iii)(A) of this subsection or derived in (d)(iii)(B) of this subsection increased
by:
A
Plan Type
B
C
.05
.05
.05
(D) For other annuities with cash settlement options and
guaranteed interest contracts with cash settlement options,
the guarantee duration is the number of years for which the
contract guarantees interest rates in excess of the calendar
year statutory valuation interest rate for life insurance policies with guarantee duration in excess of twenty years. For
other annuities with no cash settlement options and for guaranteed interest contracts with no cash settlement options, the
guarantee duration is the number of years from the date of
issue or date of purchase to the date annuity benefits are
scheduled to commence.
(E) Plan type as used in the tables in (d)(iii)(A), (B), and
(C) of this subsection is defined as follows:
Plan Type A: At any time a policyholder may withdraw
funds only: (1) With an adjustment to reflect changes in
interest rates or asset values since receipt of the funds by the
insurance company; or (2) without such adjustment but in
installments over five years or more; or (3) as an immediate
life annuity; or (4) no withdrawal permitted.
Plan Type B: Before expiration of the interest rate guarantee, a policyholder may withdraw funds only: (1) With
adjustment to reflect changes in interest rates or asset values
since receipt of the funds by the insurance company; or (2)
without such adjustment but in installments over five years or
more; or (3) no withdrawal permitted. At the end of the interest rate guarantee, funds may be withdrawn without such
adjustment in a single sum or installments over less than five
years.
Plan Type C: A policyholder may withdraw funds
before expiration of the interest rate guarantee in a single sum
or installments over less than five years either: (1) Without
adjustment to reflect changes in interest rates or asset values
since receipt of the funds by the insurance company; or (2)
subject only to a fixed surrender charge stipulated in the contract as a percentage of the fund.
(F) A company may elect to value guaranteed interest
contracts with cash settlement options and annuities with
cash settlement options on either an issue year basis or on a
change in fund basis. Guaranteed interest contracts with no
cash settlement options and other annuities with no cash settlement options must be valued on an issue year basis. As
used in this section, an issue year basis of valuation refers to
a valuation basis under which the interest rate used to determine the minimum valuation standard for the entire duration
of the annuity or guaranteed interest contract is the calendar
year valuation interest rate for the year of issue or year of purchase of the annuity or guaranteed interest contract. The
change in fund basis of valuation refers to a valuation basis
under which the interest rate used to determine the minimum
valuation standard applicable to each change in the fund held
under the annuity or guaranteed interest contract is the calen[Title 48 RCW—page 350]
dar year valuation interest rate for the year of the change in
the fund.
(e) The reference interest rate referred to in subparagraphs (b) and (c) of this subsection is defined as follows:
(i) For all life insurance, the lesser of the average over a
period of thirty-six months and the average over a period of
twelve months, ending on June 30th of the calendar year next
preceding the year of issue, of Moody's corporate bond yield
average—monthly average corporates, as published by
Moody's Investors Service, Inc.
(ii) For single premium immediate annuities and for
annuity benefits involving life contingencies arising from
other annuities with cash settlement options and guaranteed
interest contracts with cash settlement options, the average
over a period of twelve months, ending on June 30th of the
calendar year of issue or year of purchase of Moody's corporate bond yield average—monthly average corporates, as
published by Moody's Investors Service, Inc.
(iii) For other annuities with cash settlement options and
guaranteed interest contracts with cash settlement options,
valued on a year of issue basis, except as stated in (ii) of this
subparagraph, with guarantee duration in excess of ten years,
the lesser of the average over a period of thirty-six months
and the average over a period of twelve months, ending on
June 30th of the calendar year of issue or purchase, of
Moody's corporate bond yield average—monthly average
corporates, as published by Moody's Investors Service, Inc.
(iv) For other annuities with cash settlement options and
guaranteed interest contracts with cash settlement options,
valued on a year of issue basis, except as stated in (ii) of this
subparagraph, with guarantee duration of ten years or less,
the average over a period of twelve months, ending on June
30th of the calendar year of issue or purchase, of Moody's
corporate bond yield average—monthly average corporates,
as published by Moody's Investors Service, Inc.
(v) For other annuities with no cash settlement options
and for guaranteed interest contracts with no cash settlement
options, the average over a period of twelve months, ending
on June 30th of the calendar year of issue or purchase, of
Moody's corporate bond yield average—monthly average
corporates, as published by Moody's Investors Service, Inc.
(vi) For other annuities with cash settlement options and
guaranteed interest contracts with cash settlement options,
valued on a change in fund basis, except as stated in (ii) of
this subparagraph, the average over a period of twelve
months, ending on June 30th of the calendar year of the
change in the fund, of Moody's corporate bond yield average—monthly average corporates, as published by Moody's
Investors Service, Inc.
(f) If Moody's corporate bond yield average—monthly
average corporates is no longer published by Moody's Investors Service, Inc., or if the National Association of Insurance
Commissioners determines that Moody's corporate bond
yield average—monthly average corporates as published by
Moody's Investors Service, Inc. is no longer appropriate for
the determination of the reference interest rate, then an alternative method for determination of the reference interest rate,
which is adopted by the National Association of Insurance
Commissioners and approved by rule adopted by the commissioner, may be substituted. [1993 c 462 § 86; 1982 1st
ex.s. c 9 § 3.]
(2004 Ed.)
Standard Valuation Law
*Reviser's note: RCW 48.23.350 was repealed by 1982 1st ex.s. c 9 §
36. For later enactment, see chapter 48.76 RCW.
48.74.040
48.74.040 Amount of reserves required. (1) Except as
otherwise provided in RCW 48.74.040(2), 48.74.070, and
48.74.090, reserves according to the commissioner's reserve
valuation method, for the life insurance and endowment benefits of policies providing for a uniform amount of insurance
and requiring the payment of uniform premiums, shall be the
excess, if any, of the present value, at the date of valuation, of
such future guaranteed benefits provided for by such policies,
over the then present value of any future modified net premiums therefor. The modified net premiums for any such policy
shall be such uniform percentage of the respective contract
premiums for such benefits that the present value, at the date
of issue of the policy, of all such modified net premiums shall
be equal to the sum of the then present value of such benefits
provided for by the policy and the excess of (a) over (b), as
follows:
(a) A net level annual premium equal to the present
value, at the date of issue, of such benefits provided for after
the first policy year, divided by the present value, at the date
of issue, of an annuity of one per annum payable on the first
and each subsequent anniversary of such policy on which a
premium falls due: PROVIDED HOWEVER, That such net
level annual premium shall not exceed the net level annual
premium on the nineteen year premium whole life plan for
insurance of the same amount at an age one year higher than
the age at issue of such policy.
(b) A net one year term premium for such benefits provided for in the first policy year: PROVIDED, That for any
life insurance policy issued on or after January 1, 1986, for
which the contract premium in the first policy year exceeds
that of the second year and for which no comparable additional benefit is provided in the first year for such excess and
which provides an endowment benefit or a cash surrender
value or a combination thereof in an amount greater than such
excess premium, the reserve according to the commissioner's
reserve valuation method as of any policy anniversary occurring on or before the assumed ending date defined herein as
the first policy anniversary on which the sum of any endowment benefit and any cash surrender value then available is
greater than such excess premium shall, except as otherwise
provided in RCW 48.74.070, be the greater of the reserve as
of such policy anniversary calculated as described in the preceding paragraph of this subsection and the reserve as of such
policy anniversary calculated as described in that paragraph,
but with: (i) The value defined in subparagraph (a) of that
paragraph being reduced by fifteen percent of the amount of
such excess first year premium; (ii) all present values of benefits and premiums being determined without reference to
premiums or benefits provided for by the policy after the
assumed ending date; (iii) the policy being assumed to
mature on such date as an endowment; and (iv) the cash surrender value provided on such date being considered as an
endowment benefit. In making the above comparison the
mortality and interest bases stated in RCW 48.74.030 (1) and
(3) shall be used.
Reserves according to the commissioner's reserve valuation method for life insurance policies providing for a varying amount of insurance or requiring the payment of varying
(2004 Ed.)
48.74.050
premiums, group annuity and pure endowment contracts purchased under a retirement plan or plan of deferred compensation established or maintained by an employer, including a
partnership or sole proprietorship, or by an employee organization, or by both, other than a plan providing individual
retirement accounts or individual retirement annuities under
section 408 of the Internal Revenue Code, as now or hereafter
amended, disability and accidental death benefits in all policies and contracts, and all other benefits, except life insurance
and endowment benefits in life insurance policies and benefits provided by all other annuity and pure endowment contracts, shall be calculated by a method consistent with the
principles of the preceding paragraphs of this subsection.
(2) This section shall apply to all annuity and pure
endowment contracts other than group annuity and pure
endowment contracts purchased under a retirement plan or
plan of deferred compensation, established or maintained by
an employer, including a partnership or sole proprietorship,
or by an employee organization, or by both, other than a plan
providing individual retirement accounts or individual retirement annuities under section 408 of the Internal Revenue
Code, as now or hereafter amended.
Reserves according to the commissioner's annuity
reserve method for benefits under annuity or pure endowment contracts, excluding any disability and accidental death
benefits in such contracts, shall be the greatest of the respective excesses of the present values, at the date of valuation, of
the future guaranteed benefits, including guaranteed nonforfeiture benefits, provided for by such contracts at the end of
each respective contract year, over the present value, at the
date of valuation, of any future valuation considerations
derived from future gross considerations, required by the
terms of such contract, that become payable prior to the end
of such respective contract year. The future guaranteed benefits shall be determined by using the mortality table, if any,
and the interest rate, or rates, specified in such contracts for
determining guaranteed benefits. The valuation considerations are the portions of the respective gross considerations applied under the terms of such contracts to determine
nonforfeiture values. [1993 c 462 § 87; 1982 1st ex.s. c 9 §
4.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.74.050
48.74.050 Minimum aggregate reserves. (1) In no
event may a company's aggregate reserves for all life insurance policies, excluding disability and accidental death benefits, issued on or after July 10, 1982, be less than the aggregate reserves calculated in accordance with the methods set
forth in RCW 48.74.040, 48.74.070, and 48.74.080 and the
mortality table or tables and rate or rates of interest used in
calculating nonforfeiture benefits for such policies.
(2) In no event may the aggregate reserves for all policies, contracts, and benefits be less than the aggregate
reserves determined by the qualified actuary to be necessary
to render the opinion required under RCW 48.74.025. [1993
c 462 § 88; 1982 1st ex.s. c 9 § 5.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
[Title 48 RCW—page 351]
48.74.060
Title 48 RCW: Insurance
48.74.060
48.74.060 Other methods of reserve calculation.
Reserves for all policies and contracts issued prior to the
operative date of this chapter, may be calculated, at the option
of the company, according to any standards which produce
greater aggregate reserves for all such policies and contracts
than the minimum reserves required by the laws in effect
immediately prior to such date.
Reserves for any category of policies, contracts, or benefits as established by the commissioner, issued on or after
July 10, 1982, may be calculated, at the option of the company, according to any standards which produce greater
aggregate reserves for such category than those calculated
according to the minimum standard herein provided, but the
rate or rates of interest used for policies and contracts, other
than annuity and pure endowment contracts, shall not be
higher than the corresponding rate or rates of interest used in
calculating any nonforfeiture benefits provided therein.
Any such company which at any time has adopted any
standard of valuation producing greater aggregate reserves
than those calculated according to the minimum standard
herein provided may, with the approval of the commissioner,
adopt any lower standard of valuation, but not lower than the
minimum herein provided. For the purposes of this section,
the holding of additional reserves previously determined by a
qualified actuary to be necessary to render the opinion
required under RCW 48.74.025 is not to be the adoption of a
higher standard of valuation. [1993 c 462 § 89; 1982 1st ex.s.
c 9 § 6.]
of the minimum reserve calculated in accordance with RCW
48.74.040, including the second paragraph of that section,
and the minimum reserve calculated in accordance with this
section. [1982 1st ex.s. c 9 § 7.]
48.74.080
48.74.080 Procedure when specified methods of
reserve determination unfeasible. In the case of any plan
of life insurance which provides for future premium determination, the amounts of which are to be determined by the
insurance company based on then estimates of future experience, or in the case of any plan of life insurance or annuity
which is of such a nature that the minimum reserves cannot
be determined by the methods described in RCW 48.74.040
and 48.74.070, the reserves which are held under any such
plan must, under regulations promulgated by the commissioner:
(1) Be appropriate in relation to the benefits and the pattern of premiums for that plan; and
(2) Be computed by a method which is consistent with
the principles of this standard valuation law. [1982 1st ex.s.
c 9 § 8.]
48.74.090
48.74.090 Valuation of disability insurance. The
commissioner shall adopt rules containing the minimum standards applicable to the valuation of disability insurance.
[1993 c 462 § 90.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
Chapter 48.76
48.74.070
48.74.070 Minimum reserve if gross premium less
than valuation net premium. If in any contract year the
gross premium charged by any life insurance company on
any policy or contract is less than the valuation net premium
for the policy or contract calculated by the method used in
calculating the reserve thereon but using the minimum valuation standards of mortality and rate of interest, the minimum
reserve required for such policy or contract shall be the
greater of either the reserve calculated according to the mortality table, rate of interest, and method actually used for such
policy or contract, or the reserve calculated by the method
actually used for such policy or contract but using the minimum valuation standards of mortality and rate of interest and
replacing the valuation net premium by the actual gross premium in each contract year for which the valuation net premium exceeds the actual gross premium. The minimum valuation standards of mortality and rate of interest referred to in
this section are those standards stated in RCW 48.74.030 (1)
and (3): PROVIDED, That for any life insurance policy
issued on or after January 1, 1986, for which the gross premium in the first policy year exceeds that of the second year
and for which no comparable additional benefit is provided in
the first year for such excess and which provides an endowment benefit or a cash surrender value or a combination
thereof in an amount greater than such excess premium, the
foregoing provisions of this section shall be applied as if the
method actually used in calculating the reserve for such policy were the method described in RCW 48.74.040, ignoring
the second paragraph of that section. The minimum reserve at
each policy anniversary of such a policy shall be the greater
[Title 48 RCW—page 352]
Chapter 48.76 RCW
STANDARD NONFORFEITURE LAW
FOR LIFE INSURANCE
Sections
48.76.010
48.76.020
48.76.030
48.76.040
48.76.050
48.76.060
48.76.070
48.76.080
48.76.090
48.76.100
Short title—"NAIC" defined.
Nonforfeiture and cash surrender provisions required.
Amount of cash surrender value.
Nonforfeiture benefit in case of premium default.
Calculation of adjusted premiums—Operative date of section.
Requirements when specified methods of minimum values
determination unfeasible.
Calculation of cash surrender value and paid-up nonforfeiture
benefit.
Cash surrender value required for policies issued on or after
January 1, 1986.
Chapter inapplicable to certain policies.
Operative date of chapter.
48.76.010
48.76.010 Short title—"NAIC" defined. This chapter
may be known and cited as the standard nonforfeiture law for
life insurance. As used in this chapter, "NAIC" means the
National Association of Insurance Commissioners. [1982 1st
ex.s. c 9 § 10.]
48.76.020
48.76.020 Nonforfeiture and cash surrender provisions required. In the case of policies issued on and after the
operative date of this chapter as defined in RCW 48.76.100,
no policy of life insurance, except as stated in RCW
48.76.090, may be delivered or issued for delivery in this
state unless it contains in substance the following provisions,
or corresponding provisions which in the opinion of the commissioner are at least as favorable to the defaulting or surrendering policyholder as are the minimum requirements speci(2004 Ed.)
Standard Nonforfeiture Law for Life Insurance
fied in this chapter and are essentially in compliance with
RCW 48.76.080:
(1) That, in the event of default in any premium payment, the company will grant, upon proper request not later
than sixty days after the due date of the premium in default, a
paid-up nonforfeiture benefit on a plan stipulated in the policy, effective as of such due date, of such amount as may be
specified in this chapter. In lieu of such stipulated paid-up
nonforfeiture benefit, the company may substitute, upon
proper request not later than sixty days after the due date of
the premium in default, an actuarially equivalent alternative
paid-up nonforfeiture benefit which provides a greater
amount or longer period of death benefits or, if applicable, a
greater amount or earlier payment of endowment benefits.
(2) That, upon surrender of the policy within sixty days
after the due date of any premium payment in default after
premiums have been paid for at least three full years in the
case of ordinary insurance or five full years in the case of
industrial insurance, the company will pay, in lieu of any
paid-up nonforfeiture benefit, a cash surrender value of such
amount as may be specified in this chapter.
(3) That a specified paid-up nonforfeiture benefit
becomes effective as specified in the policy unless the person
entitled to make such election elects another available option
not later than sixty days after the due date of the premium in
default.
(4) That if the policy has become paid-up by completion
of all premium payments or if it is continued under any paidup nonforfeiture benefit which became effective on or after
the third policy anniversary in the case of ordinary insurance
or the fifth policy anniversary in the case of industrial insurance, the company will pay, upon surrender of the policy
within thirty days after any policy anniversary, a cash surrender value of such amount as may be specified in this chapter.
(5) That policies which cause on a basis guaranteed in
the policy unscheduled changes in benefits or premiums, or
which provide an option for changes in benefits or premiums
other than a change to a new policy, a statement of the mortality table, interest rate, and method used in calculating cash
surrender values and the paid-up nonforfeiture benefits available under the policy. In the case of all other policies, a statement of the mortality table and interest rate used in calculating the cash surrender values and the paid-up nonforfeiture
benefits available under the policy, together with a table
showing the cash surrender value, if any, and paid-up nonforfeiture benefit, if any, available under the policy on each policy anniversary either during the first twenty policy years or
during the term of the policy, whichever is shorter, such values and benefits to be calculated upon the assumption that
there are no dividends or paid-up additions credited to the
policy and that there is no indebtedness to the company on
the policy.
(6) A statement that the cash surrender values and the
paid-up nonforfeiture benefits available under the policy are
not less than the minimum values and benefits required by or
pursuant to the insurance law of the state in which the policy
is delivered; an explanation of the manner in which the cash
surrender values and the paid-up nonforfeiture benefits are
altered by the existence of any paid-up additions credited to
the policy or any indebtedness to the company on the policy;
if a detailed statement of the method of computation of the
(2004 Ed.)
48.76.030
values and benefits shown in the policy is not stated therein,
a statement that such method of computation has been filed
with the insurance supervisory official of the state in which
the policy is delivered; and a statement of the method to be
used in calculating the cash surrender value and paid-up nonforfeiture benefit available under the policy on any policy
anniversary beyond the last anniversary for which such values and benefits are consecutively shown in the policy.
Any of the foregoing provisions or portions thereof not
applicable by reason of the plan of insurance may, to the
extent inapplicable, be omitted from the policy.
The company shall reserve the right to defer the payment
of any cash surrender value for a period of six months after
demand therefor with surrender of the policy. [1982 1st ex.s.
c 9 § 11.]
48.76.030 Amount of cash surrender value. (1) Subject to subsections (2) and (3) of this section, any cash surrender value available under the policy in the event of default in
a premium payment due on any policy anniversary, whether
or not required by RCW 48.76.020, shall be an amount not
less than the excess, if any, of the present value, on such anniversary, of the future guaranteed benefits which would have
been provided for by the policy, including any existing paidup additions, if there had been no default, over the sum of the
then present value of the adjusted premiums as defined in
RCW 48.76.050, corresponding to premiums which would
have fallen due on and after such anniversary, and the amount
of any indebtedness to the company on the policy.
(2) For any policy issued on or after the operative date of
RCW 48.76.050(4), which provides supplemental life insurance or annuity benefits at the option of the insured and for an
identifiable additional premium by rider or supplemental policy provision, the cash surrender value referred to in subsection (1) of this section shall be an amount not less than the
sum of the cash surrender value as defined in such paragraph
for an otherwise similar policy issued at the same age without
such rider or supplemental policy provision and the cash surrender value as defined in such paragraph for a policy which
provides only the benefits otherwise provided by such rider
or supplemental policy provision.
(3) For any family policy issued on or after the operative
date of RCW 48.76.050(4), which defines a primary insured
and provides term insurance on the life of the spouse of the
primary insured expiring before the spouse's age seventyone, the cash surrender value shall be an amount not less than
the sum of the cash surrender value as defined in this section
for an otherwise similar policy issued at the same age without
such term insurance on the life of the spouse and the cash surrender value as defined in this section for a policy which provides only the benefits otherwise provided by such term
insurance on the life of the spouse.
(4) Any cash surrender value available within thirty days
after any policy anniversary under any policy paid-up by
completion of all premium payments or any policy continued
under any paid-up nonforfeiture benefit, whether or not
required by RCW 48.76.020, shall be an amount not less than
the present value, on such anniversary, of the future guaranteed benefits provided for by the policy, including any existing paid-up additions, decreased by any indebtedness to the
company on the policy. [1982 1st ex.s. c 9 § 12.]
48.76.030
[Title 48 RCW—page 353]
48.76.040
Title 48 RCW: Insurance
48.76.040
48.76.040 Nonforfeiture benefit in case of premium
default. Any paid-up nonforfeiture benefit available under
the policy in the event of default in a premium payment due
on any policy anniversary shall be such that its present value
as of such anniversary is at least equal to the cash surrender
value then provided for by the policy or, if none is provided
for, that cash surrender value which would have been
required by this chapter in the absence of the condition that
premiums shall have been paid for at least a specified period.
[1982 1st ex.s. c 9 § 13.]
48.76.050
48.76.050 Calculation of adjusted premiums—Operative date of section. (1)(a) This subsection does not apply
to policies issued on or after the operative date of subsection
(4) of this section. Except as provided in subparagraph (c) of
this subsection, the adjusted premiums for any policy shall be
calculated on an annual basis and shall be such uniform percentage of the respective premiums specified in the policy for
each policy year, excluding amounts stated in the policy as
extra premiums to cover impairments or special hazards, that
the present value, at the date of issue of the policy, of all such
adjusted premiums shall be equal to the sum of: (i) The then
present value of the future guaranteed benefits provided for
by the policy; (ii) two percent of the amount of insurance, if
the insurance is uniform in amount, or of the equivalent uniform amount, as hereinafter defined, if the amount of insurance varies with duration of the policy; (iii) forty percent of
the adjusted premium for the first policy year; (iv) twentyfive percent of either the adjusted premium for the first policy
year or the adjusted premium for a whole life policy of the
same uniform or equivalent uniform amount with uniform
premiums for the whole of life issued at the same age for the
same amount of insurance, whichever is less: PROVIDED,
That in applying the percentages specified in subparagraph
(a)(iii) and (iv) of this subsection, no adjusted premium shall
be deemed to exceed four percent of the amount of insurance
or level amount equivalent thereto. The date of issue of a policy for the purpose of this section shall be the date as of which
the rated age of the insured is determined.
(b) In the case of a policy providing an amount of insurance varying with duration of the policy, the equivalent level
amount thereof for the purpose of this section shall be
deemed to be the level amount of insurance provided by an
otherwise similar policy, containing the same endowment
benefit or benefits, if any, issued at the same age and for the
same term, the amount of which does not vary with duration
and the benefits under which have the same present value at
the inception of the insurance as the benefits under the policy:
PROVIDED HOWEVER, That in the case of a policy providing a varying amount of insurance issued on the life of a
child under age ten, the equivalent uniform amount may be
computed as though the amount provided by the policy prior
to the attainment of age ten were the amount provided by
such policy at age ten.
(c) The adjusted premiums for any policy providing term
insurance benefits by rider or supplemental policy provision
shall be equal to: (i) The adjusted premiums for an otherwise
similar policy issued at the same age without such term insurance benefits, increased, during the period for which premiums for such term insurance benefits are payable, by (ii) the
adjusted premiums for such term insurance, subparagraph
[Title 48 RCW—page 354]
(c)(i) and (ii) of this subsection being calculated separately
and as specified in subparagraphs (a) and (b) of this subsection except that, for the purposes of subparagraph (a)(ii),
(a)(iii), and (a)(iv) of this subsection, the amount of insurance
or equivalent uniform amount of insurance used in the calculation of the adjusted premiums referred to in subparagraph
(c)(ii) of this subsection shall be equal to the excess of the
corresponding amount determined for the entire policy over
the amount used in the calculation of the adjusted premiums
in subparagraph (c)(i) of this subsection.
(d) Except as otherwise provided in subsections (2) and
(3) of this section, all adjusted premiums and present values
referred to in this chapter shall for all policies of ordinary
insurance be calculated on the basis of the commissioner's
1941 standard ordinary mortality table: PROVIDED, That
for any category of ordinary insurance issued on female risks
on or after July 1, 1957, adjusted premiums and present values may be calculated according to an age not more than six
years younger than the actual age of the insured and such calculations for all policies of industrial insurance shall be made
on the basis of the 1941 standard industrial mortality table.
All calculations shall be made on the basis of the rate of interest, not exceeding three and one-half percent per annum,
specified in the policy for calculating cash surrender values
and paid-up nonforfeiture benefits: PROVIDED, That in calculating the present value of any paid-up term insurance with
accompanying pure endowment, if any, offered as a nonforfeiture benefit, the rates of mortality assumed may be not
more than one hundred thirty percent of the rates of mortality
according to such applicable table: PROVIDED, FURTHER, That for insurance issued on a substandard basis, the
calculation of any such adjusted premiums and present values
may be based on such other table of mortality as may be specified by the company and approved by the commissioner.
(2) This subsection does not apply to ordinary policies
issued on or after the operative date of subsection (4) of this
section. In the case of ordinary policies issued on or after the
operative date of this section, all adjusted premiums and
present values referred to in this chapter shall be calculated
on the basis of the commissioner's 1958 standard ordinary
mortality table and the rate of interest specified in the policy
for calculating cash surrender values and paid-up nonforfeiture benefits provided that such rate of interest shall not
exceed three and one-half percent per annum except that a
rate of interest not exceeding four percent per annum may be
used for policies issued on or after July 16, 1973, and before
September 1, 1979, and a rate of interest not exceeding five
and one-half percent per annum may be used for policies
issued on or after September 1, 1979, except that for any single premium whole life or endowment insurance policy a rate
of interest not exceeding six and one-half percent per annum
may be used and provided that for any category of ordinary
insurance issued on female risks, adjusted premiums and
present values may be calculated according to an age not
more than six years younger than the actual age of the
insured: PROVIDED, That in calculating the present value
of any paid-up term insurance with accompanying pure
endowment, if any, offered as a nonforfeiture benefit, the
rates of mortality assumed may be not more than those shown
in the commissioner's 1958 extended term insurance table:
PROVIDED FURTHER, That for insurance issued on a sub(2004 Ed.)
Standard Nonforfeiture Law for Life Insurance
standard basis, the calculation of any such adjusted premiums
and present values may be based on such other table of mortality as may be specified by the company and approved by
the commissioner.
After June 11, 1959, any company may file with the
commissioner a written notice of its election to comply with
the provisions of this section. After the filing of such notice,
then upon such specified date (which shall be the operative
date of this section for such company), this subsection shall
become operative with respect to the ordinary policies thereafter issued by such company. If a company makes no such
election, the operative date of this section for such company
shall be January 1, 1966.
(3) This subsection does not apply to industrial policies
issued on or after the operative date of subsection (4) of this
section. In the case of industrial policies issued on or after the
operative date of this chapter, all adjusted premiums and
present values referred to in this chapter shall be calculated
on the basis of the commissioner's 1961 standard industrial
mortality table and the rate of interest specified in the policy
for calculating cash surrender values and paid-up nonforfeiture benefits provided that such rate of interest shall not
exceed three and one-half percent per annum, except that a
rate of interest not exceeding four percent per annum may be
used for policies issued on or after July 16, 1973, and prior to
September 1, 1979, and a rate of interest not exceeding five
and one-half percent per annum may be used for policies
issued on or after September 1, 1979, except that for any single premium whole life or endowment insurance policy a rate
of interest not exceeding six and one-half percent per annum
may be used: PROVIDED, That in calculating the present
value of any paid-up term insurance with accompanying pure
endowment, if any, offered as a nonforfeiture benefit, the
rates of mortality assumed may be not more than those shown
in the commissioner's 1961 industrial extended term insurance table: PROVIDED FURTHER, That for insurance
issued on a substandard basis, the calculations of any such
adjusted premiums and present values may be based on such
other table of mortality as may be specified by the company
and approved by the commissioner.
After July 10, 1982, any company may file with the commissioner a written notice of its election to comply with the
provisions of this section. After the filing of such notice, then
upon such specified date (which shall be the operative date of
this section for such company), this subsection shall become
operative with respect to the industrial policies thereafter
issued by such company. If a company makes no such election, the operative date of this section for such company shall
be January 1, 1968.
(4)(a) This section applies to all policies issued on or
after the operative date of this subsection as defined herein.
Except as provided in subparagraph (g) of this subsection, the
adjusted premiums for any policy shall be calculated on an
annual basis and shall be such uniform percentage of the
respective premiums specified in the policy for each policy
year, excluding amounts payable as extra premiums to cover
impairments or special hazards and also excluding any uniform annual contract charge or policy fee specified in the policy in a statement of the method to be used in calculating the
cash surrender values and paid-up nonforfeiture benefits, that
the present value, at the date of issue of the policy, of all
(2004 Ed.)
48.76.050
adjusted premiums shall be equal to the sum of: (i) The then
present value of the future guaranteed benefits provided for
by the policy; (ii) one percent of either the amount of insurance, if the insurance be uniform in amount, or the average
amount of insurance at the beginning of each of the first ten
policy years; and (iii) one hundred twenty-five percent of the
nonforfeiture net level premium as defined in subparagraph
(b) of this subsection: PROVIDED, That in applying the
percentage specified in (iii) of this subparagraph no nonforfeiture net level premium shall be deemed to exceed four percent of either the amount of insurance, if the insurance be uniform in amount, or the average amount of insurance at the
beginning of each of the first ten policy years. The date of
issue of a policy for the purpose of this section shall be the
date as of which the rated age of the insured is determined.
(b) The nonforfeiture net level premium shall be equal to
the present value, at the date of issue of the policy, of the
guaranteed benefits provided for by the policy divided by the
present value, at the date of issue of the policy, of an annuity
of one per annum payable on the date of issue of the policy
and on each anniversary of such policy on which a premium
falls due.
(c) In the case of policies which cause on a basis guaranteed in the policy unscheduled changes in benefits or premiums, or which provide an option for changes in benefits or
premiums other than a change to a new policy, the adjusted
premiums and present values shall initially be calculated on
the assumption that future benefits and premiums do not
change from those stipulated at the date of issue of the policy.
At the time of any such change in the benefits or premiums
the future adjusted premiums, nonforfeiture net level premiums and present values shall be recalculated on the assumption that future benefits and premiums do not change from
those stipulated by the policy immediately after the change.
(d) Except as otherwise provided in subparagraph (g) of
this subsection, the recalculated future adjusted premiums for
any such policy shall be such uniform percentage of the
respective future premiums specified in the policy for each
policy year, excluding amounts payable as extra premiums to
cover impairments and special hazards, and also excluding
any uniform annual contract charge or policy fee specified in
the policy in a statement of the method to be used in calculating the cash surrender values and paid-up nonforfeiture benefits, that the present value, at the time of change to the newly
defined benefits or premiums, of all such future adjusted premiums shall be equal to the excess of (i) the sum of (A) the
then present value of the then future guaranteed benefits provided for by the policy and (B) the additional expense allowance, if any, over (ii) the then cash surrender value, if any, or
present value of any paid-up nonforfeiture benefit under the
policy.
(e) The additional expense allowance, at the time of the
change to the newly defined benefits or premiums, shall be
the sum of: (i) One percent of the excess, if positive, of the
average amount of insurance at the beginning of each of the
first ten policy years subsequent to the change over the average amount of insurance prior to the change at the beginning
of each of the first ten policy years subsequent to the time of
the most recent previous change, or, if there has been no previous change, the date of issue of the policy; and (ii) one hun[Title 48 RCW—page 355]
48.76.060
Title 48 RCW: Insurance
dred twenty-five percent of the increase, if positive, in the
nonforfeiture net level premium.
(f) The recalculated nonforfeiture net level premium
shall be equal to the result obtained by dividing (i) by (ii)
where:
(i) Equals the sum of:
(A) The nonforfeiture net level premium applicable prior
to the change times the present value of an annuity of one per
annum payable on each anniversary of the policy on or subsequent to the date of the change on which a premium would
have fallen due had the change not occurred; and
(B) The present value of the increase in future guaranteed benefits provided for by the policy; and
(ii) Equals the present value of an annuity of one per
annum payable on each anniversary of the policy on or subsequent to the date of change on which a premium falls due.
(g) Notwithstanding any other provisions of this section
to the contrary, in the case of a policy issued on a substandard
basis which provides reduced graded amounts of insurance so
that, in each policy year, such policy has the same tabular
mortality cost as an otherwise similar policy issued on the
standard basis which provides higher uniform amounts of
insurance, adjusted premiums and present values for such
substandard policy may be calculated as if it were issued to
provide such higher uniform amounts of insurance on the
standard basis.
(h) All adjusted premiums and present values referred to
in this chapter shall for all policies of ordinary insurance be
calculated on the basis of the commissioner's 1980 standard
ordinary mortality table or at the election of the company for
any one or more specified plans of life insurance, the commissioner's 1980 standard ordinary mortality table with tenyear select mortality factors, shall for all policies of industrial
insurance be calculated on the basis of the commissioner's
1961 standard industrial mortality table, and shall for all policies issued in a particular calendar year be calculated on the
basis of a rate of interest not exceeding the nonforfeiture
interest rate as defined in this section, for policies issued in
that calendar year, subject to the following provisions:
(i) At the option of the company, calculations for all policies issued in a particular calendar year may be made on the
basis of a rate of interest not exceeding the nonforfeiture
interest rate, as defined in this section, for policies issued in
the immediately preceding calendar year.
(ii) Under any paid-up nonforfeiture benefit, including
any paid-up dividend additions, any cash surrender value
available, whether or not required by RCW 48.76.020, shall
be calculated on the basis of the mortality table and rate of
interest used in determining the amount of such paid-up nonforfeiture benefit and paid-up dividend additions, if any.
(iii) A company may calculate the amount of any guaranteed paid-up nonforfeiture benefit including any paid-up
additions under the policy on the basis of an interest rate no
lower than that specified in the policy for calculating cash
surrender values.
(iv) In calculating the present value of any paid-up term
insurance with accompanying pure endowment, if any,
offered as a nonforfeiture benefit, the rates of mortality
assumed may be not more than those shown in the commissioner's 1980 extended term insurance table for policies of
ordinary insurance and not more than the commissioner's
[Title 48 RCW—page 356]
1961 industrial extended term insurance table for policies of
industrial insurance.
(v) For insurance issued on a substandard basis, the calculation of any such adjusted premiums and present values
may be based on appropriate modifications of the aforementioned tables.
(vi) Any ordinary mortality tables, adopted after 1980 by
the National Association of Insurance Commissioners, that
are approved by regulation promulgated by the commissioner
for use in determining the minimum nonforfeiture standard
may be substituted for the commissioner's 1980 standard
ordinary mortality table with or without ten-year select mortality factors or for the commissioner's 1980 extended term
insurance table.
(vii) Any industrial mortality tables, adopted after 1980
by the National Association of Insurance Commissioners,
that are approved by regulation promulgated by the commissioner for use in determining the minimum nonforfeiture
standard may be substituted for the commissioner's 1961
standard industrial mortality table or the commissioner's
1961 industrial extended term insurance table.
(i) The nonforfeiture interest rate per annum for any policy issued in a particular calendar year shall be equal to one
hundred twenty-five percent of the calendar year statutory
valuation interest rate for such policy as defined in the standard valuation law (chapter 48.74 RCW), rounded to the
nearer one quarter of one percent.
(j) Notwithstanding any other provision in this title to the
contrary, any refiling of nonforfeiture values or their methods
of computation for any previously approved policy form
which involves only a change in the interest rate or mortality
table used to compute nonforfeiture values shall not require
refiling of any other provisions of that policy form.
(k) After July 10, 1982, any company may file with the
commissioner a written notice of its election to comply with
the provision[s] of this section after a specified date before
January 1, 1989, which shall be the operative date of this section for such company. If a company makes no such election,
the operative date of this section for such company shall be
January 1, 1989. [1982 1st ex.s. c 9 § 14.]
48.76.060 Requirements when specified methods of
minimum values determination unfeasible. In the case of
any plan of life insurance which provides for future premium
determination, the amounts of which are to be determined by
the insurance company based on then estimates of future
experience, or in the case of any plan of life insurance which
is of such a nature that minimum values cannot be determined
by the methods described in RCW 48.76.020 through
48.76.050, then:
(1) The commissioner must be satisfied that the benefits
provided under the plan are substantially as favorable to policyholders and insureds as the minimum benefits otherwise
required by RCW 48.76.020 through 48.76.050;
(2) The commissioner must be satisfied that the benefits
and the pattern of premiums of that plan are not such as to
mislead prospective policyholders or insureds;
(3) The cash surrender values and paid-up nonforfeiture
benefits provided by such plan must not be less than the minimum values and benefits required for the plan computed by
a method consistent with the principles of this chapter, as
48.76.060
(2004 Ed.)
Standard Nonforfeiture Law for Life Insurance
determined by regulations promulgated by the commissioner.
[1982 1st ex.s. c 9 § 15.]
48.76.070
48.76.070 Calculation of cash surrender value and
paid-up nonforfeiture benefit. Any cash surrender value
and any paid-up nonforfeiture benefit, available under the
policy in the event of default in a premium payment due at
any time other than on the policy anniversary, shall be calculated with allowance for the lapse of time and the payment of
fractional premiums beyond the last preceding policy anniversary. All values referred to in RCW 48.76.030 through
48.76.050 may be calculated upon the assumption that any
death benefit is payable at the end of the policy year of death.
The net value of any paid-up additions, other than paid-up
term additions, shall be not less than the amounts used to provide such additions. Notwithstanding the provisions of RCW
48.76.030, additional benefits payable: (1) In the event of
death or dismemberment by accident or accidental means; (2)
in the event of total and permanent disability; (3) as reversionary annuity or deferred reversionary annuity benefits; (4)
as term insurance benefits provided by a rider or supplemental policy provision to which, if issued as a separate policy,
this chapter would not apply; (5) as term insurance on the life
of a child or on the lives of children provided in a policy on
the life of a parent of the child, if such term insurance expires
before the child's age is twenty-six, is uniform in amount
after the child's age is one, and has not become paid-up by
reason of the death of a parent of the child; and (6) as other
policy benefits additional to life insurance and endowment
benefits, and premiums for all such additional benefits, shall
be disregarded in ascertaining cash surrender values and nonforfeiture benefits required by this chapter, and no such additional benefits shall be required to be included in any paid-up
nonforfeiture benefits. [1982 1st ex.s. c 9 § 16.]
48.76.080
48.76.080 Cash surrender value required for policies
issued on or after January 1, 1986. (1) This section, in
addition to all other applicable sections of this chapter, shall
apply to all policies issued on or after January 1, 1986. Any
cash surrender value available under the policy in the event of
default in a premium payment due on any policy anniversary
shall be in an amount which does not differ by more than twotenths of one percent of either the amount of insurance, if the
insurance be uniform in amount, or the average amount of
insurance at the beginning of each of the first ten policy
years, from the sum of: (a) The greater of zero and the basic
cash value specified in subsection (2) of this section; and (b)
the present value of any existing paid-up additions less the
amount of any indebtedness to the company under the policy.
(2) The basic cash value shall be equal to the present
value, on such anniversary, of the future guaranteed benefits
which would have been provided for by the policy, excluding
any existing paid-up additions and before deduction of any
indebtedness to the company, if there had been no default,
less the then present value of the nonforfeiture factors, as
defined in subsection (3) of this section, corresponding to
premiums which would have fallen due on and after such
anniversary: PROVIDED, That the effects on the basic cash
value of supplemental life insurance or annuity benefits or of
family coverage, as described in RCW 48.76.030 or
(2004 Ed.)
48.76.090
48.76.050(4), whichever is applicable, shall be the same as
are the effects specified in RCW 48.76.030 or 48.76.050(4),
whichever is applicable, on the cash surrender values defined
in that section.
(3) The nonforfeiture factor for each policy year shall be
an amount equal to a percentage of the adjusted premium for
the policy year, as defined in RCW 48.76.050 (1) or (4).
Except as is required by the next succeeding sentence of this
paragraph, such percentage:
(a) Must be the same percentage for each policy year
between the second policy anniversary and the later of: (i)
The fifth policy anniversary; and (ii) The first policy anniversary at which there is available under the policy a cash surrender value in an amount, before including any paid-up
additions and before deducting any indebtedness, of at least
two-tenths of one percent of either the amount of insurance,
if the insurance be uniform in amount, or the average amount
of insurance at the beginning of each of the first ten policy
years; and
(b) Must be such that no percentage after the later of the
two policy anniversaries specified in subparagraph (a) of this
subsection may apply to fewer than five consecutive policy
years: PROVIDED, That no basic cash value may be less
than the value which would be obtained if the adjusted premiums for the policy, as defined in RCW 48.76.050 (1) or (4),
whichever is applicable, were substituted for the nonforfeiture factors in the calculation of the basic cash value.
(4) All adjusted premiums and present values referred to
in this section shall for a particular policy be calculated on the
same mortality and interest bases as are used in demonstrating the policy's compliance with the other sections of this
chapter. The cash surrender values referred to in this section
shall include any endowment benefits provided for by the
policy.
(5) Any cash surrender value available other than in the
event of default in a premium payment due on a policy anniversary, and the amount of any paid-up nonforfeiture benefit
available under the policy in the event of default in a premium payment shall be determined in manners consistent
with the manners specified for determining the analogous
minimum amounts in RCW 48.76.020 through 48.76.040,
48.76.050(4), and 48.76.070. The amounts of any cash surrender values and of any paid-up nonforfeiture benefits
granted in connection with additional benefits such as those
listed in RCW 48.76.070 shall conform with the principles of
this section. [1982 1st ex.s. c 9 § 17.]
48.76.090 Chapter inapplicable to certain policies.
This chapter does not apply to any of the following:
(1) Reinsurance;
(2) Group insurance;
(3) A pure endowment;
(4) An annuity or reversionary annuity contract;
(5) A term policy of a uniform amount, which provides
no guaranteed nonforfeiture or endowment benefits, or
renewal thereof, of twenty years or less expiring before age
seventy-one, for which uniform premiums are payable during
the entire term of the policy;
(6) A term policy of a decreasing amount, which provides no guaranteed nonforfeiture or endowment benefits, on
which each adjusted premium, calculated as specified in
48.76.090
[Title 48 RCW—page 357]
48.76.100
Title 48 RCW: Insurance
RCW 48.76.050, is less than the adjusted premium so calculated, on a term policy of uniform amount, or renewal
thereof, which provides no guaranteed nonforfeiture or
endowment benefits, issued at the same age and for the same
initial amount of insurance and for a term of twenty years or
less expiring before age seventy-one, for which uniform premiums are payable during the entire term of the policy;
(7) A policy, which provides no guaranteed nonforfeiture or endowment benefits, for which no cash surrender
value, if any, or present value of any paid-up nonforfeiture
benefit, at the beginning of any policy year, calculated as
specified in RCW 48.76.030 through 48.76.050, exceeds two
and one-half percent of the amount of insurance at the beginning of the same policy year; nor
(8) A policy which is delivered outside this state through
an agent or other representative of the company issuing the
policy.
For purposes of determining the applicability of this
chapter, the age at expiration for a joint term life insurance
policy is the age at expiration of the oldest life. [1982 1st
ex.s. c 9 § 18.]
48.76.100
48.76.100 Operative date of chapter. After July 10,
1982, any company may file with the commissioner a written
notice of its election to comply with the provisions of this
chapter. After the filing of such notice, then upon such specified date (which shall be the operative date for such company), this chapter becomes operative with respect to the policies thereafter issued by such company. If a company makes
no such election, the operative date of this chapter for such
company shall be January 1, 1948. [1982 1st ex.s. c 9 § 19.]
Chapter 48.80
Chapter 48.80 RCW
HEALTH CARE FALSE CLAIM ACT
Sections
48.80.010
48.80.020
48.80.030
48.80.040
48.80.050
48.80.060
48.80.900
Legislative finding—Short title.
Definitions.
Making false claims, concealing information—Penalty—
Exclusions.
Use of circumstantial evidence.
Civil action not limited.
Conviction of provider, notification to regulatory agency.
Severability—1986 c 243.
48.80.010
48.80.010 Legislative finding—Short title. The legislature finds and declares that the welfare of the citizens of this
state is threatened by the spiraling increases in the cost of
health care. It is further recognized that fraudulent health care
claims contribute to these increases in health care costs. In
recognition of these findings, it is declared that special attention must be directed at eliminating the unjustifiable costs of
fraudulent health care claims by establishing specific penalties and deterrents. This chapter may be known and cited as
"the health care false claim act." [1986 c 243 § 1.]
48.80.020
48.80.020 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Claim" means any attempt to cause a health care
payer to make a health care payment.
[Title 48 RCW—page 358]
(2) "Deceptive" means presenting a claim to a health
care payer that contains a statement of fact or fails to reveal a
material fact, leading the health care payer to believe that the
represented or suggested state of affairs is other than it actually is. For the purposes of this chapter, the determination of
what constitutes a material fact is a question of law to be
resolved by the court.
(3) "False" means wholly or partially untrue or deceptive.
(4) "Health care payment" means a payment for health
care services or the right under a contract, certificate, or policy of insurance to have a payment made by a health care
payer for a specified health care service.
(5) "Health care payer" means any insurance company
authorized to provide health insurance in this state, any health
care service contractor authorized under chapter 48.44 RCW,
any health maintenance organization authorized under chapter 48.46 RCW, any legal entity which is self-insured and
providing health care benefits to its employees, and any
insurer or other person responsible for paying for health care
services.
(6) "Person" means an individual, corporation, partnership, association, or other legal entity.
(7) "Provider" means any person lawfully licensed or
authorized to render any health service. [1995 c 285 § 25;
1986 c 243 § 2.]
Effective date—1995 c 285: See RCW 48.30A.900.
48.80.030
48.80.030 Making false claims, concealing information—Penalty—Exclusions. (1) A person shall not make or
present or cause to be made or presented to a health care
payer a claim for a health care payment knowing the claim to
be false.
(2) No person shall knowingly present to a health care
payer a claim for a health care payment that falsely represents
that the goods or services were medically necessary in accordance with professionally accepted standards. Each claim
that violates this subsection shall constitute a separate
offense.
(3) No person shall knowingly make a false statement or
false representation of a material fact to a health care payer
for use in determining rights to a health care payment. Each
claim that violates this subsection shall constitute a separate
violation.
(4) No person shall conceal the occurrence of any event
affecting his or her initial or continued right under a contract,
certificate, or policy of insurance to have a payment made by
a health care payer for a specified health care service. A person shall not conceal or fail to disclose any information with
intent to obtain a health care payment to which the person or
any other person is not entitled, or to obtain a health care payment in an amount greater than that which the person or any
other person is entitled.
(5) No provider shall willfully collect or attempt to collect an amount from an insured knowing that to be in violation of an agreement or contract with a health care payor to
which the provider is a party.
(6) A person who violates this section is guilty of a class
C felony punishable under chapter 9A.20 RCW.
(2004 Ed.)
Long-Term Care Insurance Act
(7) This section does not apply to statements made on an
application for coverage under a contract or certificate of
health care coverage issued by an insurer, health care service
contractor, health maintenance organization, or other legal
entity which is self-insured and providing health care benefits
to its employees. [1990 c 119 § 11; 1986 c 243 § 3.]
48.80.040
48.80.040 Use of circumstantial evidence. In a prosecution under this chapter, circumstantial evidence may be
presented to demonstrate that a false statement or claim was
knowingly made. Such evidence may include but shall not be
limited to the following circumstances:
(1) Where a claim for a health care payment is submitted
with the person's actual, facsimile, stamped, typewritten, or
similar signature on the form required for the making of a
claim for health care payment; and
(2) Where a claim for a health care payment is submitted
by means of computer billing tapes or other electronic means
if the person has advised the health care payer in writing that
claims for health care payment will be submitted by use of
computer billing tapes or other electronic means. [1986 c
243 § 4.]
48.80.050
48.80.050 Civil action not limited. This chapter shall
not be construed to prohibit or limit a prosecution of or civil
action against a person for the violation of any other law of
this state. [1986 c 243 § 5.]
48.80.060
48.80.060 Conviction of provider, notification to regulatory agency. Upon the conviction under this chapter of
any provider, the prosecutor shall provide written notification
to the appropriate regulatory or disciplinary agency of such
conviction. [1986 c 243 § 6.]
48.84.040
of long-term care insurance from unfair or deceptive sales,
marketing, and advertising practices. The provisions of this
chapter shall apply in addition to other requirements of Title
48 RCW. [1986 c 170 § 1.]
48.84.020
48.84.020 Definitions. Unless the context requires otherwise, the definitions in this section apply throughout this
chapter.
(1) "Long-term care insurance" or "long-term care benefit contract" means any insurance policy or benefit contract
primarily advertised, marketed, offered, or designed to provide coverage or services for either institutional or community-based convalescent, custodial, chronic, or terminally ill
care. Such terms do not include and this chapter shall not
apply to policies or contracts governed by chapter 48.66
RCW and continuing care retirement communities.
(2) "Loss ratio" means the incurred claims plus or minus
the increase or decrease in reserves as a percentage of the
earned premiums, or the projected incurred claims plus or
minus the increase or decrease in projected reserves as a percentage of projected earned premiums, as defined by the
commissioner.
(3) "Preexisting condition" means a covered person's
medical condition that caused that person to have received
medical advice or treatment during the specified time period
before the effective date of coverage.
(4) "Medicare" means Title XVIII of the United States
social security act, or its successor program.
(5) "Medicaid" means Title XIX of the United States
social security act, or its successor program.
(6) "Nursing home" means a nursing home as defined in
RCW 18.51.010. [1986 c 170 § 2.]
48.84.030
48.80.900
48.80.900 Severability—1986 c 243. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1986 c 243 § 7.]
Chapter 48.84
Chapter 48.84 RCW
LONG-TERM CARE INSURANCE ACT
48.84.030 Rules—Benefits-premiums ratio, coverage
limitations. (1) The commissioner shall adopt rules requiring reasonable benefits in relation to the premium or price
charged for long-term care policies and contracts which rules
may include but are not limited to the establishment of minimum loss ratios.
(2) In addition, the commissioner may adopt rules establishing standards for long-term care coverage benefit limitations, exclusions, exceptions, and reductions and for policy or
contract renewability. [1986 c 170 § 3.]
Sections
48.84.040
48.84.010
48.84.020
48.84.030
48.84.040
48.84.050
48.84.060
48.84.070
48.84.900
48.84.910
General provisions, intent.
Definitions.
Rules—Benefits-premiums ratio, coverage limitations.
Policies and contracts—Prohibited provisions.
Disclosure rules—Required provisions in policy or contract.
Prohibited practices.
Separation of data regarding certain policies.
Severability—1986 c 170.
Effective date, application—1986 c 170.
Long-term care insurance plans for eligible public employees: RCW
41.05.065.
48.84.010
48.84.010 General provisions, intent. This chapter
may be known and cited as the "long-term care insurance act"
and is intended to govern the content and sale of long-term
care insurance and long-term care benefit contracts as
defined in this chapter. This chapter shall be liberally construed to promote the public interest in protecting purchasers
(2004 Ed.)
48.84.040 Policies and contracts—Prohibited provisions. No long-term care insurance policy or benefit contract
may:
(1) Use riders, waivers, endorsements, or any similar
method to limit or reduce coverage or benefits;
(2) Indemnify against losses resulting from sickness on a
different basis than losses resulting from accidents;
(3) Be canceled, nonrenewed, or segregated at the time
of rerating solely on the grounds of the age or the deterioration of the mental or physical health of the covered person;
(4) Exclude or limit coverage for preexisting conditions
for a period of more than one year prior to the effective date
of the policy or contract or more than six months after the
effective date of the policy or contract;
(5) Differentiate benefit amounts on the basis of the type
or level of nursing home care provided;
[Title 48 RCW—page 359]
48.84.050
Title 48 RCW: Insurance
(6) Contain a provision establishing any new waiting
period in the event an existing policy or contract is converted
to a new or other form within the same company. [1986 c 170
§ 4.]
48.84.050
48.84.050 Disclosure rules—Required provisions in
policy or contract. (1) The commissioner shall adopt rules
requiring disclosure to consumers of the level, type, and
amount of benefits provided and the limitations, exclusions,
and exceptions contained in a long-term care insurance policy or contract. In adopting such rules the commissioner shall
require an understandable disclosure to consumers of any
cost for services that the consumer will be responsible for in
utilizing benefits covered under the policy or contract.
(2) Each long-term care insurance policy or contract
shall include a provision, prominently displayed on the first
page of the policy or contract, stating in substance that the
person to whom the policy or contract is sold shall be permitted to return the policy or contract within thirty days of its
delivery. In the case of policies or contracts solicited and sold
by mail, the person may return the policy or contract within
sixty days. Once the policy or contract has been returned, the
person may have the premium refunded if, after examination
of the policy or contract, the person is not satisfied with it for
any reason. An additional ten percent penalty shall be added
to any premium refund due which is not paid within thirty
days of return of the policy or contract to the insurer or agent.
If a person, pursuant to such notice, returns the policy or contract to the insurer at its branch or home office, or to the agent
from whom the policy or contract was purchased, the policy
or contract shall be void from its inception, and the parties
shall be in the same position as if no policy or contract had
been issued. [1986 c 170 § 5.]
48.84.060
48.84.060 Prohibited practices. No agent, broker, or
other representative of an insurer, contractor, or other organization selling or offering long-term care insurance policies or
benefit contracts may: (1) Complete the medical history portion of any form or application for the purchase of such policy or contract; (2) knowingly sell a long-term care policy or
contract to any person who is receiving medicaid; or (3) use
or engage in any unfair or deceptive act or practice in the
advertising, sale, or marketing of long-term care policies or
contracts. [1986 c 170 § 6.]
48.84.070
48.84.070 Separation of data regarding certain policies. Commencing with reports for accounting periods
beginning on or after January 1, 1988, all insurers, fraternal
benefit societies, health care services contractors, and health
maintenance organizations shall, for reporting and record
keeping purposes, separate data concerning long-term care
insurance policies and contracts from data concerning other
insurance policies and contracts. [1986 c 170 § 7.]
48.84.910 Effective date, application—1986 c 170.
RCW 48.84.060 shall take effect on November 1, 1986, and
the commissioner shall adopt all rules necessary to implement RCW 48.84.060 by its effective date including rules
prohibiting particular unfair or deceptive acts and practices in
the advertising, sale, and marketing of long-term care policies and contracts. The commissioner shall adopt all rules
necessary to implement the remaining sections of this chapter
by July 1, 1987, and the remaining sections of this chapter
shall apply to policies and contracts issued on or after January
1, 1988. [1986 c 170 § 10.]
48.84.910
Chapter 48.85 RCW
WASHINGTON LONG-TERM CARE PARTNERSHIP
Chapter 48.85
Sections
48.85.010
48.85.020
48.85.030
48.85.040
48.85.900
Washington long-term care partnership program—Generally.
Protection of assets—Federal approval—Rules.
Insurance policy criteria—Rules.
Consumer education program.
Short title—Severability—Savings—Captions not law—Reservation of legislative power—Effective dates—1993 c 492.
48.85.010 Washington long-term care partnership
program—Generally. The department of social and health
services shall, in conjunction with the office of the insurance
commissioner, coordinate a long-term care insurance program entitled the Washington long-term care partnership,
whereby private insurance and medicaid funds shall be used
to finance long-term care. For individuals purchasing a longterm care insurance policy or contract governed by chapter
48.84 RCW and meeting the criteria prescribed in this chapter, and any other terms as specified by the office of the insurance commissioner and the department of social and health
services, this program shall allow for the exclusion of some
or all of the individual's assets in determination of medicaid
eligibility as approved by the federal health care financing
administration. [1995 1st sp.s. c 18 § 76; 1993 c 492 § 458.]
48.85.010
Conflict with federal requirements—Severability—Effective date—
1995 1st sp.s. c 18: See notes following RCW 74.39A.030.
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
48.85.020
48.85.020 Protection of assets—Federal approval—
Rules. The department of social and health services shall
seek approval from the federal health care financing administration to allow the protection of an individual's assets as provided in this chapter. The department shall adopt all rules
necessary to implement the Washington long-term care partnership program, which rules shall permit the exclusion of all
or some of an individual's assets in a manner specified by the
department in a determination of medicaid eligibility to the
extent that private long-term care insurance provides payment or benefits for services. [1995 1st sp.s. c 18 § 77; 1993
c 492 § 459.]
Conflict with federal requirements—Severability—Effective date—
1995 1st sp.s. c 18: See notes following RCW 74.39A.030.
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
48.84.900
48.84.900 Severability—1986 c 170. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1986 c 170 § 9.]
[Title 48 RCW—page 360]
48.85.030 Insurance policy criteria—Rules. (1) The
insurance commissioner shall adopt rules defining the criteria
that long-term care insurance policies must meet to satisfy
the requirements of this chapter. The rules shall provide that
48.85.030
(2004 Ed.)
Midwives and Birthing Centers—Joint Underwriting Association
all long-term care insurance policies purchased for the purposes of this chapter:
(a) Be guaranteed renewable;
(b) Provide coverage for nursing home care and provide
coverage for an alternative plan of care benefit as defined by
the commissioner;
(c) Provide optional coverage for home and communitybased services. Such home and community-based services
shall be included in the coverage unless rejected in writing by
the applicant;
(d) Provide automatic inflation protection or similar coverage for any policyholder through the age of seventy-nine
and made optional at age eighty to protect the policyholder
from future increases in the cost of long-term care;
(e) Not require prior hospitalization or confinement in a
nursing home as a prerequisite to receiving long-term care
benefits; and
(f) Contain at least a six-month grace period that permits
reinstatement of the policy or contract retroactive to the date
of termination if the policy or contract holder's nonpayment
of premiums arose as a result of a cognitive impairment suffered by the policy or contract holder as certified by a physician.
(2) Insurers offering long-term care policies for the purposes of this chapter shall demonstrate to the satisfaction of
the insurance commissioner that they:
(a) Have procedures to provide notice to each purchaser
of the long-term care consumer education program;
(b) Offer case management services;
(c) Have procedures that provide for the keeping of individual policy records and procedures for the explanation of
coverage and benefits identifying those payments or services
available under the policy that meet the purposes of this chapter;
(d) Agree to provide the insurance commissioner, on or
before September 1 of each year, an annual report containing
information derived from the long-term care partnership
long-term care insurance uniform data set as specified by the
office of the insurance commissioner. [1995 1st sp.s. c 18 §
78; 1993 c 492 § 460.]
Conflict with federal requirements—Severability—Effective date—
1995 1st sp.s. c 18: See notes following RCW 74.39A.030.
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
48.85.040
48.85.040 Consumer education program. The insurance commissioner shall, with the cooperation of the department of social and health services and members of the longterm care insurance industry, develop a consumer education
program designed to educate consumers as to the need for
long-term care, methods for financing long-term care, the
availability of long-term care insurance, and the availability
and eligibility requirements of the asset protection program
provided under this chapter. [1995 1st sp.s. c 18 § 79; 1993 c
492 § 461.]
Conflict with federal requirements—Severability—Effective date—
1995 1st sp.s. c 18: See notes following RCW 74.39A.030.
Findings—Intent—1993 c 492: See notes following RCW 43.20.050.
48.85.900
48.85.900 Short title—Severability—Savings—Captions not law—Reservation of legislative power—Effec(2004 Ed.)
tive dates—1993 c 492.
43.72.915.
48.87.020
See RCW 43.72.910 through
Chapter 48.87 RCW
MIDWIVES AND BIRTHING CENTERS—JOINT
UNDERWRITING ASSOCIATION
Chapter 48.87
Sections
48.87.010
48.87.020
48.87.030
48.87.040
48.87.050
48.87.060
48.87.070
48.87.080
48.87.100
Intent.
Definitions.
Plan for establishing association—Commissioner's duty—
Market assistance plan.
Composition of association.
Midwifery and birth center malpractice insurance—Rating
plan modified according to practice volume.
Administering a plan.
Policies written on a claims made basis—Commissioner may
not approve without insurer guarantees.
Risk management program—Part of plan.
Rule making.
48.87.010
48.87.010 Intent. Certified nurse midwives and
licensed midwives experience a major problem in both the
availability and affordability of malpractice insurance. In
particular midwives practicing outside hospital settings are
unable to obtain malpractice insurance at any price in this
state at this time. Licensed midwives have been unable to
obtain hospital privileges due in part to the requirement of
almost all Washington hospitals that professional staff members have liability insurance.
The services performed by midwives are in demand by
many women for childbirth and prenatal care. Women often
choose to have a home or birth center birth instead of a hospital birth. Women are entitled to the provider of their choice
at such a critical life event. Studies document the safety of
midwife-attended births and the safety of home births for
low-risk women.
At a time when safety, cost-effectiveness, and individual
choice are of paramount concern to the citizens of Washington state, midwifery care in a variety of settings must be
available to the public. This is essential to the goals of
increased access to maternity care and increased cost-effectiveness of care, as well as addressing problems of provider
shortage. One of the primary impediments to the availability
of maternity services performed by midwives is the lack of
available and affordable malpractice liability insurance coverage.
This chapter is intended to increase the availability of
cost-effective, high-quality maternity care by making malpractice insurance available for midwives. This chapter is
implemented by requiring all insurers authorized to write
commercial or professional liability insurance to be members
of a joint underwriting association created to provide malpractice insurance for midwives. [1993 c 112 § 1.]
48.87.020
48.87.020 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Association" means the joint underwriting association established under this chapter.
(2) "Midwifery and birth center malpractice insurance"
means insurance coverage against the legal liability of the
insured and against loss damage or expense incident to a
[Title 48 RCW—page 361]
48.87.030
Title 48 RCW: Insurance
claim arising out of the death or injury of a person as a result
of negligence or malpractice in rendering professional service by a licensee.
(3) "Licensee" means a person or facility licensed to provide midwifery services under chapter 18.50, 18.79, or 18.46
RCW. [2002 c 300 § 1; 1993 c 112 § 2.]
midwives subsequent to the discontinuance of professional
practice by the midwife or the sooner termination of the
insurance policy by the insurer for so long as there is a reasonable probability of a claim for injury for which the health
care provider might be liable. [1993 c 112 § 7.]
48.87.080
48.87.030
48.87.030 Plan for establishing association—Commissioner's duty—Market assistance plan. The insurance
commissioner shall approve by December 31, 1993, a reasonable plan for the establishment of a nonprofit, joint underwriting association for midwifery and birth center malpractice insurance subject to the conditions and limitations contained in this chapter. Such plan shall include a market
assistance plan to be used prior to activating a joint underwriting association. [1993 c 112 § 3.]
48.87.040
48.87.040 Composition of association. The association shall be comprised of all insurers possessing a certificate
of authority to write and engaged in writing medical malpractice insurance within this state and general casualty companies. Every insurer shall be a member of the association and
shall remain a member as a condition of its authority to continue to transact business in this state. Only licensed midwives under chapter 18.50 RCW, certified nurse midwives
licensed under chapter 18.79 RCW, or birth centers licensed
under chapter 18.46 RCW may participate in the joint underwriting authority. [2002 c 300 § 2; 1993 c 112 § 4.]
48.87.050
48.87.050 Midwifery and birth center malpractice
insurance—Rating plan modified according to practice
volume. A licensee may apply to the association to purchase
midwifery and birth center malpractice insurance and the
association shall offer a policy with liability limits of one million dollars per claim and three million dollars per annual
aggregate, or such other minimum level of mandated coverage as determined by the department of health. The insurance
commissioner shall require the use of a rating plan for midwifery malpractice insurance that permits rates to be modified according to practice volume. Any rating plan for midwifery malpractice insurance used under this section must be
based on sound actuarial principles. Coverage may not
exclude midwives who engage in home birth or birth center
deliveries. [1994 c 90 § 1; 1993 c 112 § 5.]
Effective date—1994 c 90: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[March 23, 1994]." [1994 c 90 § 2.]
48.87.060 Administering a plan. The commissioner
may select an insurer to administer a plan established under
this chapter. The insurer must be admitted to transact the
business of insurance of the state of Washington. [1993 c 112
§ 6.]
48.87.060
48.87.070
48.87.070 Policies written on a claims made basis—
Commissioner may not approve without insurer guarantees. The insurance commissioner may not approve a policy
written on a claims made basis by an insurer doing business
in this state unless the insurer guarantees to the commissioner
the continued availability of suitable liability protection for
[Title 48 RCW—page 362]
48.87.080 Risk management program—Part of plan.
A risk management program for insureds of the association
must be established as a part of the plan. This program must
include but not be limited to: Investigation and analysis of
frequency, severity, and causes of adverse or untoward outcomes; development of measures to control these injuries;
systematic reporting of incidents; investigation and analysis
of patient complaints; and education of association members
to improve quality of care and risk reduction. [1993 c 112 §
8.]
48.87.100
48.87.100 Rule making. The commissioner may adopt
all rules necessary to ensure the efficient, equitable operation
of the association, including but not limited to, rules requiring or limiting certain policy provisions. [1993 c 112 § 10.]
Chapter 48.88
Chapter 48.88 RCW
DAY CARE SERVICES—JOINT
UNDERWRITING ASSOCIATION
Sections
48.88.010
48.88.020
48.88.030
48.88.040
48.88.050
48.88.070
Intent.
Definitions.
Plan for joint underwriting association.
Association—Membership.
Policies—Liability limits—Rating plan.
Rules.
48.88.010
48.88.010 Intent. Day care service providers have
experienced major problems in both the availability and
affordability of liability insurance. Premiums for such insurance policies have recently grown as much as five hundred
percent and the availability of such insurance in Washington
markets has greatly diminished.
The availability of quality day care is essential to achieving such goals as increased work force productivity, family
self-sufficiency, and protection for children at risk due to
poverty and abuse. The unavailability of adequate liability
insurance threatens to decrease the availability of day care
services.
This chapter is intended to remedy the problem of
unavailable liability insurance for day care services by
requiring all insurers authorized to write commercial or professional liability insurance to be members of a joint underwriting association created to provide liability insurance for
day care services. [1986 c 141 § 1.]
48.88.020
48.88.020 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Association" means the joint underwriting association established pursuant to the provisions of this chapter.
(2) "Day care insurance" means insurance coverage
against the legal liability of the insured and against loss, damage, or expense incident to a claim arising out of the death or
(2004 Ed.)
Child Day Care Centers—Self-Insurance
injury of any person as the result of negligence or malpractice
in rendering professional service by any licensee.
(3) "Licensee" means any person or facility licensed to
provide day care services pursuant to chapter 74.15 RCW.
[1986 c 141 § 2.]
48.88.030 Plan for joint underwriting association.
The commissioner shall approve by July 1, 1986, a reasonable plan for the establishment of a nonprofit, joint underwriting association for day care insurance, subject to the conditions and limitations contained in this chapter. [1986 c 141
§ 3.]
48.88.030
48.88.040 Association—Membership. The association shall be comprised of all insurers possessing a certificate
of authority to write and engage in writing property and casualty insurance within this state on a direct basis, including the
liability portion of multiperil policies, but not of ocean
marine insurance. Every such insurer shall be a member of
the association and shall remain a member as a condition of
its authority to continue to transact business in this state.
[1986 c 141 § 4.]
48.88.040
48.88.050 Policies—Liability limits—Rating plan.
Any licensee may apply to the association to purchase day
care insurance, and the association shall offer a policy with
liability limits of at least one hundred thousand dollars per
occurrence. The commissioner shall require the use of a rating plan for day care insurance that permits rates to be modified for individual licensees according to the type, size and
past loss experience of the licensee including any other difference among licensees that can be demonstrated to have a
probable effect upon losses. [1986 c 141 § 5.]
48.88.050
48.88.070 Rules. The commissioner may adopt all rules
necessary to ensure the efficient, equitable operation of the
association, including but not limited to, rules requiring or
limiting certain policy provisions. [1986 c 141 § 7.]
48.88.070
Chapter 48.90 RCW
CHILD DAY CARE CENTERS—SELF-INSURANCE
Chapter 48.90
(Formerly: Day care centers—Self-insurance)
Sections
48.90.010
48.90.020
48.90.030
48.90.040
48.90.050
48.90.060
48.90.070
48.90.080
48.90.090
48.90.100
48.90.110
48.90.120
48.90.130
48.90.140
48.90.150
48.90.160
48.90.170
Findings and intent.
Definitions.
Authority to self-insure.
Chapter exclusive.
Elements of plan.
Approval of plan.
Contributing trust fund.
Initial implementation of plan—Conditions.
Standard of care in fund management—Fiduciary.
Annual report.
Powers of association.
Contracts—Terms.
Significant modifications in plan, statement on.
Dissolution of plan and association.
Recovery limits.
Suspension of plan—Reconsideration.
Costs of investigation or review of plan.
48.90.010 Findings and intent. (1) Day care providers
are facing a major crisis in that adequate and affordable business liability insurance is no longer available within this state
48.90.010
(2004 Ed.)
48.90.020
for persons who care for children. Many child day care centers have been forced to purchase inadequate coverage at prohibitive premium rates from unregulated foreign surplus line
carriers over which the state has minimal control.
(2) There is a danger that a substantial number of child
day care centers who cannot afford the escalating premiums
will be unable or unwilling to remain in business without adequate coverage. As a result the number of available facilities
will be drastically reduced forcing some parents to leave the
work force to care for their children. A corresponding
demand upon the state's resources will result in the form of
public assistance to unemployed parents and day care providers.
(3) There is a further danger that a substantial number of
child day care centers now licensed pursuant to state law,
who currently provide specific safeguards for the health and
safety of children but are unable to procure insurance, may
choose to continue to operate without state approval, avoiding regulation and payment of legitimate taxes, and forcing
some parents to place their children in facilities of unknown
quality and questionable levels of safety.
(4) Most child day care centers are small business enterprises with limited resources. The state's policies encourage
the growth and development of small businesses.
(5)(a) This chapter is intended to remedy the problem of
nonexistent or unaffordable liability coverage for child day
care centers, and to encourage compliance with state laws
protecting children while meeting the state's sound economic
policies of encouraging small business development, sustaining an active work force, and discouraging policies that result
in an increased drain on the state's resources through public
assistance and other forms of public funding.
(b) This chapter will empower child day care centers to
create self-insurance pools, to purchase insurance coverage,
and to contract for risk management and administrative services through an association with demonstrated responsible
fiscal management.
The intent of this legislation is to allow these associations maximum flexibility to create and administer plans to
provide coverage and risk management services to licensed
child day care centers. [2003 c 248 § 21; 1986 c 142 § 1.]
48.90.020 Definitions. The definitions in this section
apply throughout this chapter.
(1) "Child day care center" means an agency that regularly provides care for one or more children for periods of
less than twenty-four hours as defined in RCW
74.15.020(1)(a).
(2) "Association" means a corporation organized under
Title 24 RCW, representative of one or more categories of
child day care centers not formed for the sole purpose of
establishing and operating a self-insurance program that:
(a) Maintains a roster of current names and addresses of
member child day care centers and of former member child
day care centers or their representatives, and of all employees
of member or former member child day care centers;
(b) Has a membership of a size and stability to ensure
that it will be able to provide consistent and responsible fiscal
management; and
(c) Maintains a regular newsletter or other periodic communication to member child day care centers.
48.90.020
[Title 48 RCW—page 363]
48.90.030
Title 48 RCW: Insurance
(3) "Subscriber" means a child day care center that:
(a) Subscribes to a plan created pursuant to this chapter;
(b) Complies with all state licensing requirements;
(c) Is a member in good standing of an association;
(d) Has consistently maintained its license free from
revocation for cause, except where the revocation was not
later rescinded or vacated by appellate or administrative decision; and
(e) Is prepared to demonstrate the willingness and ability
to bear its share of the financial responsibility of its participation in the plan for each applicable contractual period. [2003
c 248 § 22; 1986 c 142 § 2.]
48.90.030
48.90.030 Authority to self-insure. Associations meeting the criteria of RCW 48.90.020 are empowered to create
and operate self-insurance plans to provide general liability
coverage to member child day care centers who choose to
subscribe to the plans. [2003 c 248 § 23; 1986 c 142 § 3.]
tion of contingent liabilities and a procedure for immediate
assessments if the contributing trust fund falls below the level
set in RCW 48.90.050(2)(b);
(e) A plan for monitoring risks and disseminating information with respect to their reduction or elimination;
(f) A contract with a professional insurance management
corporation, for the management and operation of any joint
self-insurance pool established by the association; and
(g) The corporate address of the association. [1986 c 142
§ 5.]
48.90.060
48.90.060 Approval of plan. If the plan submitted
complies with RCW 48.90.050 and if the terms of the plan
reflect sound financial management, the commissioner shall
approve the plan submitted pursuant to RCW 48.90.050.
[1986 c 142 § 6.]
48.90.070
48.90.040
48.90.040 Chapter exclusive. Except as provided in
this chapter, self-insurance plans formed and implemented
pursuant to this chapter shall be governed by this chapter and
shall be exempt from all other provisions of the insurance
laws of this state. [1986 c 142 § 4.]
48.90.050
48.90.050 Elements of plan. Any association desiring
to establish a plan pursuant to this chapter shall prepare and
submit to the commissioner a proposed plan of organization
and operation, including the following elements:
(1) A statement that the association meets the requirements of this chapter.
(2) A financial plan specifying:
(a) The coverage to be offered by the self-insurance pool,
setting forth a deductible level and maximum level of claims
that the pool will self-insure;
(b) The amount of cash reserves to be maintained for the
payment of claims;
(c) The amount of insurance, if any, to be purchased to
cover claims in excess of the amount of claims to be satisfied
directly from the association's own cash reserves;
(d) The amount of stop-loss coverage to be purchased in
the event the joint self-insurance pool's resources are
exhausted in a given fiscal period;
(e) A mechanism for determining and assessing the contingent liability of subscribers in the event the assets in the
contributing trust fund are at any time insufficient to cover
liabilities; and
(f) Certification that all subscribers in the pool are
apprised of the limitations of coverage to be provided.
(3) A plan of management setting forth:
(a) The means of fulfilling the requirements in RCW
48.90.050(2);
(b) The names and addresses of board members and their
terms of office, and a copy of the corporate bylaws defining
the method of election of board members;
(c) The frequency of studies or other evaluation to establish the periodic contribution rates for each of the subscribers;
(d) The responsibilities of subscribers, including procedures for entry into and withdrawal from the pool, the alloca[Title 48 RCW—page 364]
48.90.070 Contributing trust fund. All funds contributed for the purpose of the self-insurance plan shall be deposited in a contributing trust fund, which shall at all times be
maintained separately from the general funds of the association. The association shall not contribute to or draw upon the
contributing trust fund at any time or for any reason other
than administration of the trust fund and operation of the
plan. All administration and operating costs related to the
trust fund shall be drawn from it. [1986 c 142 § 7.]
48.90.080
48.90.080 Initial implementation of plan—Conditions. The initial implementation of the plan shall be conditioned upon establishment of the minimum deposits in the
contributing trust fund at least thirty days prior to the first
effective date of the program for its first year of operation.
[1986 c 142 § 8.]
48.90.090
48.90.090 Standard of care in fund management—
Fiduciary. In managing the assets of the contributing trust
fund, the association shall exercise the reasonable judgment
and care that ordinary persons of prudence, intelligence, and
discretion exercise in the sound management of their affairs,
not in regard to speculation but in regard to preservation of
their funds with maximum return, given the information reasonably available. The association may delegate this duty to
a responsible fiduciary. If the fiduciary has special skills or
represents that it has special skills, then the fiduciary is under
a duty to use those skills in the management of the fund's
assets. [1986 c 142 § 9.]
48.90.100
48.90.100 Annual report. The association shall provide an annual report of the operations of the plan to all subscribers, to the secretary of social and health services, and to
the commissioner. This report shall:
(1) Review claims made, judgments entered, and claims
rejected;
(2) Certify that the current level of the contributing trust
fund is sufficient to meet reasonable needs, or provide a plan
for establishing such a level within a reasonable time; and
(3) Make recommendations for specific measures of risk
reduction. [1986 c 142 § 10.]
(2004 Ed.)
Liability Risk Retention
48.90.110 Powers of association. The association shall
have the power, in its capacity as plan administrator, to contract for or delegate services as necessary for the efficient
management and operation of the plan, including but not limited to:
(1) Contracting for risk management and loss control
services;
(2) Designing a continuing program of risk reduction,
calling for the participation of all subscribers;
(3) Contracting for legal counsel for the defense of
claims and other legal services;
(4) Consulting with the commissioner, the secretary of
social and health services, or other interested state agencies
with respect to any matters affecting the provision of day care
for the state's children, and related risk problems; and
(5) Purchasing commercial insurance coverage in the
form and amount as the subscribers may by contract agree,
including reinsurance, excess coverage, and stop-loss insurance. [1986 c 142 § 11.]
48.90.110
48.90.120 Contracts—Terms. (1) All contracts
between subscribers and the association shall be for one-year
periods and shall terminate on the first day of the next fiscal
year of the association following their signature. Subscribers
withdrawing from participation in the plan during any contract period may do so only upon surrender of their licenses to
care for children to the department of social and health services.
(2) Premiums should be annual, prorated quarterly in the
event any subscriber withdraws, or any new subscriber contracts with the association to become part of the plan during
the fiscal year. Subscribers should not have the power to delegate or assign the responsibility for their assessments.
(3) Contracts should provide for recovery by the association, of any assessments that are not promptly contributed,
for methods of collection, and for resolution of related disputes. [1986 c 142 § 12.]
48.90.120
48.90.130 Significant modifications in plan, statement on. Within six months of the beginning of any fiscal
year in which significant modifications of the plan are envisioned, the association shall provide the commissioner with a
statement of those modifications, setting forth the proposed
changes, reasons for the changes, and reasonable alternatives,
if any exist. The statement shall specifically include reference
to coverage available in the commercial insurance market,
together with suggested solutions within the joint self-insurance plan. [1986 c 142 § 13.]
48.90.130
48.90.140 Dissolution of plan and association. (1) If
at any time the plan can no longer be operated on a sound
financial basis, the association may elect to dissolve the plan,
subject to explicit approval by the commissioner of a plan for
dissolution. Once a plan operated by an association has been
dissolved, that association may not again implement a plan
pursuant to this chapter for five calendar years.
(2) At dissolution, the assets of the association represented by the contributing trust fund shall be deposited with
the commissioner for a period of twenty-one years, to be
made available for claims arising during that period based
upon occurrences during the term of coverage. At the time of
48.90.140
(2004 Ed.)
Chapter 48.92
transfer of the funds, the association shall certify to the commissioner a list of all current subscribers, with their correct
mailing addresses, and shall have notified all current subscribers of their obligation to keep the commissioner
informed of any changes in their mailing addresses over the
twenty-one year period, and that this obligation extends to
their representatives, successors, assigns, and to the representatives of their estates. Upon dissolution, the association is
required to provide to the commissioner a list of all plan subscribers during all of the years of operation of the plan.
At the end of the twenty-one year period, any funds
remaining in the trust account must be distributed to those
subscribers who were current subscribers in the most recent
year of operation of the plan, with each current subscriber
receiving an equal share of the distribution, without regard
for the length of time each child day care center was a subscriber.
In the alternative, in the discretion of the association, the
balance of the contributing trust fund may be used to purchase similar or more liberal coverage from a commercial
insurer. Each subscriber shall, however, be given the option
to deposit its share of the fund with the commissioner as provided in this section if it elects not to participate in the proposed commercial insurance. [2003 c 248 § 24; 1986 c 142 §
14.]
48.90.150 Recovery limits. No person with a claim
covered by a plan established pursuant to this chapter shall be
entitled to recover from the plan any amount in excess of the
limits of coverage provided for in the plan. [1986 c 142 §
15.]
48.90.150
48.90.160 Suspension of plan—Reconsideration. The
commissioner may disapprove, and require suspension of a
plan for failure of the association to comply with any provision of this chapter, for gross mismanagement, or for wilful
disregard and neglect of its fiduciary duty. The association
shall have the right to request reconsideration of the commissioner's decision within fifteen days of the receipt of the commissioner's written notification of the decision, or to request
a hearing according to chapter 48.04 RCW. [1986 c 142 §
16.]
48.90.160
48.90.170
48.90.170 Costs of investigation or review of plan.
All reasonable costs of any investigation or review by the
commissioner of an association's plan of organization and
operation, or any changes or modifications thereof, including
the dissolution of a plan, shall be paid by the association
before issuance of any approval required under this chapter.
[1986 c 142 § 17.]
Chapter 48.92
Chapter 48.92 RCW
LIABILITY RISK RETENTION
Sections
48.92.010
48.92.020
48.92.030
48.92.040
48.92.050
48.92.060
Purpose.
Definitions.
Requirements for chartering.
Required acts—Prohibited practices.
Insolvency guaranty fund, participation prohibited—Joint
underwriting associations, participation required.
Countersigning not required.
[Title 48 RCW—page 365]
48.92.010
48.92.070
48.92.080
48.92.090
48.92.095
48.92.100
48.92.110
48.92.120
48.92.130
48.92.140
Title 48 RCW: Insurance
Purchasing groups—Exempt from certain laws.
Purchasing groups—Notice and registration.
Purchasing groups—Dealing with foreign insurers—Deductible or self-insured retention—Aggregate limits.
Premium taxes—Imposition—Obligations—Member's liability.
Authority of commissioner.
Penalties.
Agents, brokers, solicitors—License required.
Federal injunctions.
Rules.
48.92.010 Purpose. The purpose of this chapter is to
regulate the formation and operation of risk retention groups
and purchasing groups in this state formed pursuant to the
provisions of the federal Liability Risk Retention Act of
1986. [1993 c 462 § 91; 1987 c 306 § 1.]
48.92.010
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.92.020 Definitions. As used in this chapter, the following terms have the meanings indicated unless the context
clearly requires otherwise:
(1) "Commissioner" means the insurance commissioner
of Washington state or the commissioner, director, or superintendent of insurance in any other state.
(2) "Completed operations liability" means liability arising out of the installation, maintenance, or repair of any product at a site which is not owned or controlled by:
(a) Any person who performs that work; or
(b) Any person who hires an independent contractor to
perform that work; but shall include liability for activities
which are completed or abandoned before the date of the
occurrence giving rise to the liability.
(3) "Domicile," for purposes of determining the state in
which a purchasing group is domiciled, means:
(a) For a corporation, the state in which the purchasing
group is incorporated; and
(b) For an unincorporated entity, the state of its principal
place of business.
(4) "Hazardous financial condition" means that, based on
its present or reasonably anticipated financial condition, a
risk retention group, although not yet financially impaired or
insolvent, is unlikely to be able:
(a) To meet obligations to policyholders with respect to
known claims and reasonably anticipated claims; or
(b) To pay other obligations in the normal course of business.
(5) "Insurance" means primary insurance, excess insurance, reinsurance, surplus lines insurance, and any other
arrangement for shifting and distributing risk which is determined to be insurance under the laws of this state.
(6) "Liability" means legal liability for damages including costs of defense, legal costs and fees, and other claims
expenses because of injuries to other persons, damage to their
property, or other damage or loss to such other persons resulting from or arising out of:
(a) Any business, whether profit or nonprofit, trade,
product, services, including professional services, premises,
or operations; or
(b) Any activity of any state or local government, or any
agency or political subdivision thereof.
"Liability" does not include personal risk liability and an
employer's liability with respect to its employees other than
48.92.020
[Title 48 RCW—page 366]
legal liability under the federal Employers' Liability Act 45
U.S.C. 51 et seq.
(7) "Personal risk liability" means liability for damages
because of injury to any person, damage to property, or other
loss or damage resulting from any personal, familial, or
household responsibilities or activities, rather than from
responsibilities or activities referred to in subsection (6) of
this section.
(8) "Plan of operation or a feasibility study" means an
analysis which presents the expected activities and results of
a risk retention group including, at a minimum:
(a) Information sufficient to verify that its members are
engaged in businesses or activities similar or related with
respect to the liability to which the members are exposed by
virtue of any related, similar, or common business, trade,
product, services, premises, or operations;
(b) For each state in which it intends to operate, the coverages, deductibles, coverage limits, rates, and rating classification systems for each line of insurance the group intends to
offer;
(c) Historical and expected loss experience of the proposed members and national experience of similar exposures;
(d) Pro forma financial statements and projections;
(e) Appropriate opinions by a qualified, independent,
casualty actuary, including a determination of minimum premium or participation levels required to commence operations and to prevent a hazardous financial condition;
(f) Identification of management, underwriting and
claims procedures, marketing methods, managerial oversight
methods, investment policies, and reinsurance agreements;
(g) Identification of each state in which the risk retention
group has obtained, or sought to obtain, a charter and license,
and a description of its status in each of those states; and
(h) Such other matters as may be prescribed by the commissioner for liability insurance companies authorized by the
insurance laws of the state.
(9) "Product liability" means liability for damages
because of any personal injury, death, emotional harm, consequential economic damage, or property damage including
damages resulting from the loss of use of property arising out
of the manufacture, design, importation, distribution, packaging, labeling, lease, or sale of a product, but does not include
the liability of any person for those damages if the product
involved was in the possession of such a person when the
incident giving rise to the claim occurred.
(10) "Purchasing group" means any group which:
(a) Has as one of its purposes the purchase of liability
insurance on a group basis;
(b) Purchases the insurance only for its group members
and only to cover their similar or related liability exposure, as
described in (c) of this subsection;
(c) Is composed of members whose businesses or activities are similar or related with respect to the liability to which
members are exposed by virtue of any related, similar, or
common business, trade, product, services, premises, or operations; and
(d) Is domiciled in any state.
(11) "Risk retention group" means any corporation or
other limited liability association:
(2004 Ed.)
Liability Risk Retention
(a) Whose primary activity consists of assuming and
spreading all, or any portion, of the liability exposure of its
group members;
(b) Which is organized for the primary purpose of conducting the activity described under (a) of this subsection;
(c) Which:
(i) Is chartered and licensed as a liability insurance company and authorized to engage in the business of insurance
under the laws of any state; or
(ii) Before January 1, 1985, was chartered or licensed
and authorized to engage in the business of insurance under
the laws of Bermuda or the Cayman Islands and, before such
date, had certified to the insurance commissioner of at least
one state that it satisfied the capitalization requirements of
such state, except that any such group shall be considered to
be a risk retention group only if it has been engaged in business continuously since that date and only for the purpose of
continuing to provide insurance to cover product liability or
completed operations liability as the terms were defined in
the federal Product Liability Risk Retention Act of 1981
before the date of the enactment of the federal Risk Retention
Act of 1986;
(d) Which does not exclude any person from membership in the group solely to provide for members of such a
group a competitive advantage over such a person;
(e) Which:
(i) Has as its owners only persons who comprise the
membership of the risk retention group and who are provided
insurance by the risk retention group; or
(ii) Has as its sole owner an organization that has:
(A) As its members only persons who comprise the
membership of the risk retention group; and
(B) As its owners only persons who comprise the membership of the risk retention group and who are provided
insurance by the group;
(f) Whose members are engaged in businesses or activities similar or related with respect to the liability of which
such members are exposed by virtue of any related, similar,
or common business trade, product, services, premises, or
operations;
(g) Whose activities do not include the provision of
insurance other than:
(i) Liability insurance for assuming and spreading all or
any portion of the liability of its group members; and
(ii) Reinsurance with respect to the liability of any other
risk retention group or any members of such other group
which is engaged in businesses or activities so that the group
or member meets the requirement described in (f) of this subsection from membership in the risk retention group which
provides such reinsurance; and
(h) The name of which includes the phrase "risk retention group."
(12) "State" means any state of the United States or the
District of Columbia. [1993 c 462 § 92; 1987 c 306 § 2.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.92.030 Requirements for chartering. (1) A risk
retention group seeking to be chartered in this state must be
chartered and licensed as a liability insurance company
authorized by the insurance laws of this state and, except as
48.92.030
(2004 Ed.)
48.92.040
provided elsewhere in this chapter, must comply with all of
the laws, rules, regulations, and requirements applicable to
the insurers chartered and licensed in this state and with
RCW 48.92.040 to the extent the requirements are not a limitation on laws, rules, regulations, or requirements of this
state.
(2) A risk retention group chartered in this state shall file
with the department and the National Association of Insurance Commissioners an annual statement in a form prescribed by the National Association of Insurance Commissioners, and in electronic form if required by the commissioner, and completed in accordance with its instructions and
the National Association of Insurance Commissioners
accounting practices and procedures manual.
(3) Before it may offer insurance in any state, each
domestic risk retention group shall also submit for approval
to the insurance commissioner of this state a plan of operation
or a feasibility study. The risk retention group shall submit an
appropriate revision in the event of a subsequent material
change in an item of the plan of operation or feasibility study,
within ten days of the change. The group may not offer any
additional kinds of liability insurance, in this state or in any
other state, until a revision of the plan or study is approved by
the commissioner.
(4) At the time of filing its application for charter, the
risk retention group shall provide to the commissioner in
summary form the following information: The identity of the
initial members of the group; the identify of those individuals
who organized the group or who will provide administrative
services or otherwise influence or control the activities of the
group; the amount and nature of the initial capitalization; the
coverages to be afforded; and the states in which the group
intends to operate. Upon receipt of this information, the commissioner shall forward the information to the National Association of Insurance Commissioners. Providing notification
to the National Association of Insurance Commissioners is in
addition to and is not sufficient to satisfy the requirements of
RCW 48.92.040 or this chapter. [1993 c 462 § 93; 1987 c 306
§ 3.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.92.040
48.92.040 Required acts—Prohibited practices. Risk
retention groups chartered and licensed in states other than
this state and seeking to do business as a risk retention group
in this state shall comply with the laws of this state as follows:
(1) Before offering insurance in this state, a risk retention
group shall submit to the commissioner on a form prescribed
by the National Association of Insurance Commissioners:
(a) A statement identifying the state or states in which
the risk retention group is chartered and licensed as a liability
insurance company, date of chartering, its principal place of
business, and any other information including information on
its membership, as the commissioner of this state may require
to verify that the risk retention group is qualified under RCW
48.92.020(11);
(b) A copy of its plan of operations or a feasibility study
and revisions of the plan or study submitted to its state of
domicile: PROVIDED, HOWEVER, That the provision
relating to the submission of a plan of operation or a feasibil[Title 48 RCW—page 367]
48.92.050
Title 48 RCW: Insurance
ity study shall not apply with respect to any line or classification of liability insurance which: (i) Was defined in the federal Product Liability Risk Retention Act of 1981 before
October 27, 1986; and (ii) was offered before that date by any
risk retention group which had been chartered and operating
for not less than three years before that date;
(c) The risk retention group shall submit a copy of any
revision to its plan of operation or feasibility study required
under RCW 48.92.030(3) at the same time that the revision is
submitted to the commissioner of its chartering state; and
(d) A statement of registration which designates the
commissioner as its agent for the purpose of receiving service
of legal documents or process.
(2) Any risk retention group doing business in this state
shall submit to the commissioner:
(a) A copy of the group's financial statement submitted
to its state of domicile, which shall be certified by an independent public accountant and contain a statement of opinion
on loss and loss adjustment expense reserves made by a
member of the American academy of actuaries or a qualified
loss reserve specialist under criteria established by the
National Association of Insurance Commissioners;
(b) A copy of each examination of the risk retention
group as certified by the commissioner or public official conducting the examination;
(c) Upon request by the commissioner, a copy of any
information or document pertaining to an outside audit performed with respect to the risk retention group; and
(d) Any information as may be required to verify its continuing qualification as a risk retention group under RCW
48.92.020(11).
(3)(a) A risk retention group is liable for the payment of
premium taxes and taxes on premiums of direct business for
risks resident or located within this state, and shall report on
or before March 1st of each year to the commissioner the
direct premiums written for risks resident or located within
this state. The risk retention group is subject to taxation, and
applicable fines and penalties related thereto, on the same
basis as a foreign admitted insurer.
(b) To the extent agents or brokers are utilized under
RCW 48.92.120 or otherwise, they shall report to the commissioner the premiums for direct business for risks resident
or located within this state that the licensees have placed with
or on behalf of a risk retention group not chartered in this
state.
(c) To the extent agents or brokers are used under RCW
48.92.120 or otherwise, an agent or broker shall keep a complete and separate record of all policies procured from each
risk retention group. The record is open to examination by the
commissioner, as provided in chapter 48.03 RCW. These
records must include, for each policy and each kind of insurance provided thereunder, the following:
(i) The limit of liability;
(ii) The time period covered;
(iii) The effective date;
(iv) The name of the risk retention group that issued the
policy;
(v) The gross premium charged; and
(vi) The amount of return premiums, if any.
(4) Any risk retention group, its agents and representatives, shall be subject to any and all unfair claims settle[Title 48 RCW—page 368]
ment practices statutes and regulations specifically denominated by the commissioner as unfair claims settlement practices regulations.
(5) Any risk retention group, its agents and representatives, shall be subject to the provisions of chapter 48.30 RCW
pertaining to deceptive, false, or fraudulent acts or practices.
However, if the commissioner seeks an injunction regarding
such conduct, the injunction must be obtained from a court of
competent jurisdiction.
(6) Any risk retention group must submit to an examination by the commissioner to determine its financial condition
if the commissioner of the jurisdiction in which the group is
chartered has not initiated an examination or does not initiate
an examination within sixty days after a request by the commissioner of this state. The examination shall be coordinated
to avoid unjustified repetition and conducted in an expeditious manner and in accordance with the National Association of Insurance Commissioners' examiner handbook.
(7) Every application form for insurance from a risk
retention group and every policy issued by a risk retention
group shall contain in ten-point type on the front page and the
declaration page, the following notice:
NOTICE
This policy is issued by your risk retention group.
Your risk retention group may not be subject to all
of the insurance laws and regulations of your state.
State insurance insolvency guaranty funds are not
available for your risk retention group.
(8) The following acts by a risk retention group are
hereby prohibited:
(a) The solicitation or sale of insurance by a risk retention group to any person who is not eligible for membership
in that group; and
(b) The solicitation or sale of insurance by, or operation
of, a risk retention group that is in a hazardous financial condition or is financially impaired.
(9) No risk retention group shall be allowed to do business in this state if an insurance company is directly or indirectly a member or owner of the risk retention group, other
than in the case of a risk retention group all of whose members are insurance companies.
(10) The terms of an insurance policy issued by a risk
retention group may not provide, or be construed to provide,
coverage prohibited generally by statute of this state or
declared unlawful by the highest court of this state.
(11) A risk retention group not chartered in this state and
doing business in this state shall comply with a lawful order
issued in a voluntary dissolution proceeding or in a delinquency proceeding commenced by a state insurance commissioner if there has been a finding of financial impairment
after an examination under subsection (6) of this section.
[1993 c 462 § 94; 1987 c 306 § 4.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.92.050
48.92.050 Insolvency guaranty fund, participation
prohibited—Joint underwriting associations, participation required. (1) No risk retention group shall be permitted
to join or contribute financially to any insurance insolvency
(2004 Ed.)
Liability Risk Retention
guaranty fund, or similar mechanism, in this state, nor shall
any risk retention group, or its insureds or claimants against
its insureds, receive any benefit from any such fund for
claims arising under the insurance policies issued by a risk
retention group.
(2) A risk retention group shall participate in this state's
joint underwriting associations and mandatory liability pools
or plans required by the commissioners.
(3) When a purchasing group obtains insurance covering
its members' risks from an insurer not authorized in this state
or a risk retention group, no such risks, wherever resident or
located, are covered by an insurance guaranty fund or similar
mechanism in this state.
(4) When a purchasing group obtains insurance covering
its members' risks from an authorized insurer, only risks resident or located in this state are covered by the state guaranty
fund established in chapter 48.32 RCW. [1993 c 462 § 95;
1987 c 306 § 5.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.92.060 Countersigning not required. A policy of
insurance issued to a risk retention group or any member of
that group shall not be required to be countersigned. [1987 c
306 § 6.]
48.92.060
48.92.070 Purchasing groups—Exempt from certain
laws. A purchasing group and its insurer or insurers are subject to all applicable laws of this state, except that a purchasing group and its insurer or insurers are exempt, in regard to
liability insurance for the purchasing group, from any law
that:
(1) Prohibits the establishment of a purchasing group;
(2) Makes it unlawful for an insurer to provide or offer to
provide insurance on a basis providing, to a purchasing group
or its members, advantages based on their loss and expense
experience not afforded to other persons with respect to rates,
policy forms, coverages, or other matters;
(3) Prohibits a purchasing group or its members from
purchasing insurance on a group basis described in subsection (2) of this section;
(4) Prohibits a purchasing group from obtaining insurance on a group basis because the group has not been in existence for a minimum period of time or because any member
has not belonged to the group for a minimum period of time;
(5) Requires that a purchasing group must have a minimum number of members, common ownership or affiliation,
or certain legal form;
(6) Requires that a certain percentage of a purchasing
group must obtain insurance on a group basis;
(7) Otherwise discriminates against a purchasing group
or any of its members. [1993 c 462 § 96; 1987 c 306 § 7.]
48.92.070
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.92.080 Purchasing groups—Notice and registration. (1) A purchasing group which intends to do business in
this state shall furnish, before doing business, notice to the
commissioner, on forms prescribed by the National Association of Insurance Commissioners which shall:
(a) Identify the state in which the group is domiciled;
48.92.080
(2004 Ed.)
48.92.090
(b) Identify all other states in which the group intends to
do business;
(c) Specify the lines and classifications of liability insurance which the purchasing group intends to purchase;
(d) Identify the insurance company or companies from
which the group intends to purchase its insurance and the
domicile of that company or companies;
(e) Specify the method by which, and the person or persons, if any, through whom insurance will be offered to its
members whose risks are resident or located in this state;
(f) Identify the principal place of business of the group;
and
(g) Provide any other information as may be required by
the commissioner to verify that the purchasing group is qualified under RCW 48.92.020(10).
(2) A purchasing group shall, within ten days, notify the
commissioner of any changes in any of the items set forth in
subsection (1) of this section.
(3) The purchasing group shall register with and designate the commissioner as its agent solely for the purpose of
receiving service of legal documents or process, except that
this requirement shall not apply in the case of a purchasing
group that only purchases insurance that was authorized
under the federal Product Liability Risk Retention Act of
1981 and:
(a) Which in any state of the United States:
(i) Was domiciled before April 1, 1986; and
(ii) Is domiciled on and after October 27, 1986;
(b) Which:
(i) Before October 27, 1986, purchased insurance from
an insurance carrier licensed in any state;
(ii) Since October 27, 1986, purchased its insurance from
an insurance carrier licensed in any state; or
(c) Which was a purchasing group under the requirements of the federal Product Liability Risk Retention Act of
1981 before October 27, 1986.
(4) A purchasing group that is required to give notice
under subsection (1) of this section shall also furnish such
information as may be required by the commissioner to:
(a) Verify that the entity qualifies as a purchasing group;
(b) Determine where the purchasing group is located;
and
(c) Determine appropriate tax treatment. [1993 c 462 §
97; 1987 c 306 § 8.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.92.090
48.92.090 Purchasing groups—Dealing with foreign
insurers—Deductible or self-insured retention—Aggregate limits. (1) A purchasing group may not purchase insurance from a risk retention group that is not chartered in a state
or from an insurer not admitted in the state in which the purchasing group is located, unless the purchase is effected
through a licensed agent or broker acting pursuant to the surplus lines laws and regulations of that state.
(2) A purchasing group that obtains liability insurance
from an insurer not admitted in this state or a risk retention
group shall inform each of the members of the group that
have a risk resident or located in this state that the risk is not
protected by an insurance insolvency guaranty fund in this
[Title 48 RCW—page 369]
48.92.095
Title 48 RCW: Insurance
state, and that the risk retention group or insurer may not be
subject to all insurance laws and rules of this state.
(3) No purchasing group may purchase insurance providing for a deductible or self-insured retention applicable to
the group as a whole; however, coverage may provide for a
deductible or self-insured retention applicable to individual
members.
(4) Purchases of insurance by purchasing groups are subject to the same standards regarding aggregate limits that are
applicable to all purchases of group insurance. [1993 c 462 §
98; 1987 c 306 § 9.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.92.095
48.92.095 Premium taxes—Imposition—Obligations—Member's liability. Premium taxes and taxes on premiums paid for coverage of risks resident or located in this
state by a purchasing group or any members of the purchasing groups must be:
(1) Imposed at the same rate and subject to the same
interest, fines, and penalties as those applicable to premium
taxes and taxes on premiums paid for similar coverage from
authorized insurers, as defined under chapter 48.05 RCW, or
unauthorized insurers, as defined and provided for under
chapter 48.15 RCW, by other insurers; and
(2) The obligation of the insurer; and if not paid by the
insurer, then the obligation of the purchasing group; and if
not paid by the purchasing group, then the obligation of the
agent or broker for the purchasing group; and if not paid by
the agent or broker for the purchasing group, then the obligation of each of the purchasing group's members. The liability
of each member of the purchasing group is several, not joint,
and is limited to the tax due in relation to the premiums paid
by that member. [1993 c 462 § 99.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.92.100
48.92.120
48.92.120 Agents, brokers, solicitors—License
required. (1) No person may act or aid in any manner in
soliciting, negotiating, or procuring liability insurance in this
state from a risk retention group unless the person is licensed
as an insurance agent or broker for casualty insurance in
accordance with chapter 48.17 RCW and pays the fees designated for the license under RCW 48.14.010.
(2)(a) No person may act or aid in any manner in soliciting, negotiating, or procuring liability insurance in this state
for a purchasing group from an authorized insurer or a risk
retention group chartered in a state unless the person is
licensed as an insurance agent or broker for casualty insurance in accordance with chapter 48.17 RCW and pays the
fees designated for the license under RCW 48.14.010.
(b) No person may act or aid in any manner in soliciting,
negotiating, or procuring liability insurance coverage in this
state for a member of a purchasing group under a purchasing
group's policy unless the person is licensed as an insurance
agent or broker for casualty insurance in accordance with
chapter 48.17 RCW and pays the fees designated for the
license under RCW 48.14.010.
(c) No person may act or aid in any manner in soliciting,
negotiating, or procuring liability insurance from an insurer
not authorized to do business in this state on behalf of a purchasing group located in this state unless the person is
licensed as a surplus lines broker in accordance with chapter
48.15 RCW and pays the fees designated for the license
under RCW 48.14.010.
(3) For purposes of acting as an agent or broker for a risk
retention group or purchasing group under subsections (1)
and (2) of this section, the requirement of residence in this
state does not apply.
(4) Every person licensed under chapters 48.15 and
48.17 RCW, on business placed with risk retention groups or
written through a purchasing group, shall inform each prospective insured of the provisions of the notice required
under RCW 48.92.040(7) in the case of a risk retention group
and *RCW 48.92.090(3) in the case of a purchasing group.
[1993 c 462 § 101; 1987 c 306 § 12.]
48.92.100 Authority of commissioner. The commissioner is authorized to make use of any of the powers established under Title 48 RCW to enforce the laws of this state so
long as those powers are not specifically preempted by the
federal Product Liability Risk Retention Act of 1981, as
amended by the federal Risk Retention Amendments of 1986.
This includes, but is not limited to, the commissioner's
administrative authority to investigate, issue subpoenas, conduct depositions and hearings, issue orders, impose penalties,
and seek injunctive relief. With regard to any investigation,
administrative proceedings, or litigation, the commissioner
can rely on the procedural law and regulations of the state.
The injunctive authority of the commissioner in regard to risk
retention groups is restricted by the requirement that any
injunction be issued by a court of competent jurisdiction.
[1993 c 462 § 100; 1987 c 306 § 10.]
48.92.130 Federal injunctions. An order issued by any
district court of the United States enjoining a risk retention
group from soliciting or selling insurance, or operating, in
any state or in all states or in any territory or possession of the
United States, upon a finding that the group is in a hazardous
financial or financially impaired condition, shall be enforceable in the courts of the state. [1993 c 462 § 102; 1987 c 306
§ 13.]
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.92.110
48.92.110 Penalties. A risk retention group which violates any provision of this chapter shall be subject to fines and
penalties applicable to licensed insurers generally, including
revocation of its license and/or the right to do business in this
state. [1987 c 306 § 11.]
[Title 48 RCW—page 370]
*Reviser's note: The reference to RCW 48.92.090(3) appears erroneous. Reference to RCW 48.92.090(2) was apparently intended.
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
48.92.130
48.92.140
48.92.140 Rules. The commissioner may establish and
from time to time amend the rules relating to risk retention or
purchasing groups as may be necessary or desirable to carry
out the provisions of this chapter. [1993 c 462 § 103; 1987 c
306 § 14.]
(2004 Ed.)
Reinsurance Intermediary Act
Severability—Implementation—1993 c 462: See RCW 48.31B.901
and 48.31B.902.
Chapter 48.94
Chapter 48.94 RCW
REINSURANCE INTERMEDIARY ACT
Sections
48.94.005
48.94.010
48.94.015
48.94.020
48.94.025
48.94.030
48.94.035
48.94.040
48.94.045
48.94.050
48.94.055
48.94.900
48.94.901
48.94.005
Definitions.
Acting as a reinsurance intermediary-broker or reinsurance
intermediary-manager—Commissioner's powers—
Licenses—Attorney exemption.
Written authorization required between a reinsurance intermediary-broker and an insurer—Minimum provisions.
Accounts and records maintained by reinsurance intermediary-broker—Access by insurer.
Restrictions on insurer—Obtaining services—Employees—
Financial condition of reinsurance intermediary.
Contract required between a reinsurance intermediary-manager and a reinsurer—Minimum provisions.
Restrictions on reinsurance intermediary-manager—Retrocessions—Syndicates—Licenses—Employees.
Restrictions on reinsurer—Financial condition of reinsurance
intermediary-manager—Loss reserves—Retrocessions—
Termination of contract—Board of directors.
Examination by commissioner.
Violations of chapter—Penalties—Judicial review.
Rule making.
Short title.
Severability—Implementation—1993 c 462.
48.94.005 Definitions. The definitions set forth in this
section apply throughout this chapter:
(1) "Actuary" means a person who is a member in good
standing of the American Academy of Actuaries.
(2) "Controlling person" means a person, firm, association, or corporation who directly or indirectly has the power
to direct or cause to be directed, the management, control, or
activities of the reinsurance intermediary.
(3) "Insurer" means insurer as defined in RCW
48.01.050.
(4) "Licensed producer" means an agent, broker, or reinsurance intermediary licensed under the applicable provisions of this title.
(5) "Reinsurance intermediary" means a reinsurance
intermediary-broker or a reinsurance intermediary-manager
as these terms are defined in subsections (6) and (7) of this
section.
(6) "Reinsurance intermediary-broker" means a person,
other than an officer or employee of the ceding insurer, firm,
association, or corporation who solicits, negotiates, or places
reinsurance cessions or retrocessions on behalf of a ceding
insurer without the authority or power to bind reinsurance on
behalf of the insurer.
(7) "Reinsurance intermediary-manager" means a person, firm, association, or corporation who has authority to
bind or manages all or part of the assumed reinsurance business of a reinsurer, including the management of a separate
division, department, or underwriting office, and acts as an
agent for the reinsurer whether known as a reinsurance
intermediary-manager, manager, or other similar term. Notwithstanding this subsection, the following persons are not
considered a reinsurance intermediary-manager, with respect
to such reinsurer, for the purposes of this chapter:
(a) An employee of the reinsurer;
(b) A United States manager of the United States branch
of an alien reinsurer;
(2004 Ed.)
48.94.010
(c) An underwriting manager who, pursuant to contract,
manages all the reinsurance operations of the reinsurer, is
under common control with the reinsurer, subject to the
Insurer Holding Company Act, chapter 48.31B RCW, and
whose compensation is not based on the volume of premiums
written;
(d) The manager of a group, association, pool, or organization of insurers that engages in joint underwriting or joint
reinsurance and that are subject to examination by the insurance commissioner of the state in which the manager's principal business office is located.
(8) "Reinsurer" means a person, firm, association, or corporation licensed in this state under this title as an insurer
with the authority to assume reinsurance.
(9) "To be in violation" means that the reinsurance intermediary, insurer, or reinsurer for whom the reinsurance intermediary was acting failed to substantially comply with this
chapter.
(10) "Qualified United States financial institution"
means an institution that:
(a) Is organized or, in the case of a United States office
of a foreign banking organization, licensed, under the laws of
the United States or any state thereof;
(b) Is regulated, supervised, and examined by United
States federal or state authorities having regulatory authority
over banks and trust companies; and
(c) Has been determined by either the commissioner, or
the securities valuation office of the National Association of
Insurance Commissioners, to meet such standards of financial condition and standing as are considered necessary and
appropriate to regulate the quality of financial institutions
whose letters of credit will be acceptable to the commissioner. [1993 c 462 § 23.]
48.94.010
Acting as a reinsurance
i n t e r m e d i a r y -b r o k e r
or
reinsurance
intermediary-manager—Commissioner's powers—
Licenses—Attorney exemption. (1) No person, firm,
association, or corporation may act as a reinsurance intermediary-broker in this state if the person, firm, association, or
corporation maintains an office either directly or as a member
or employee of a firm or association, or an officer, director, or
employee of a corporation:
(a) In this state, unless the person, firm, association, or
corporation is a licensed reinsurance intermediary-broker in
this state; or
(b) In another state, unless the person, firm, association,
or corporation is a licensed reinsurance intermediary-broker
in this state or another state having a regulatory scheme substantially similar to this chapter.
(2) No person, firm, association, or corporation may act
as a reinsurance intermediary-manager:
(a) For a reinsurer domiciled in this state, unless the person, firm, association, or corporation is a licensed reinsurance
intermediary-manager in this state;
(b) In this state, if the person, firm, association, or corporation maintains an office either directly or as a member or
employee of a firm or association, or an officer, director, or
employee of a corporation in this state, unless the person,
firm, association, or corporation is a licensed reinsurance
intermediary-manager in this state;
48.94.010
[Title 48 RCW—page 371]
48.94.015
Title 48 RCW: Insurance
(c) In another state for a nondomestic reinsurer, unless
the person, firm, association, or corporation is a licensed reinsurance intermediary-manager in this state or another state
having a substantially similar regulatory scheme.
(3) The commissioner may require a reinsurance intermediary-manager subject to subsection (2) of this section to:
(a) File a bond in an amount and from an insurer acceptable to the commissioner for the protection of the reinsurer;
and
(b) Maintain an errors and omissions policy in an amount
acceptable to the commissioner.
(4)(a) The commissioner may issue a reinsurance intermediary license to a person, firm, association, or corporation
who has complied with the requirements of this chapter. Any
such license issued to a firm or association authorizes all the
members of the firm or association and any designated
employees to act as reinsurance intermediaries under the
license, and all such persons may be named in the application
and any supplements to it. Any such license issued to a corporation authorizes all of the officers, and any designated
employees and directors of it, to act as reinsurance intermediaries on behalf of the corporation, and all such persons must
be named in the application and any supplements to it.
(b) If the applicant for a reinsurance intermediary license
is a nonresident, the applicant, as a condition precedent to
receiving or holding a license, shall designate the commissioner as agent for service of process in the manner, and with
the same legal effect, provided for by this title for designation
of service of process upon unauthorized insurers, and also
shall furnish the commissioner with the name and address of
a resident of this state upon whom notices or orders of the
commissioner or process affecting the nonresident reinsurance intermediary may be served. The licensee shall
promptly notify the commissioner in writing of every change
in its designated agent for service of process, but the change
does not become effective until acknowledged by the commissioner.
(5) The commissioner may refuse to issue a reinsurance
intermediary license if, in his or her judgment, the applicant,
anyone named on the application, or a member, principal,
officer, or director of the applicant, is not trustworthy, or that
a controlling person of the applicant is not trustworthy to act
as a reinsurance intermediary, or that any of the foregoing has
given cause for revocation or suspension of the license, or has
failed to comply with a prerequisite for the issuance of such
license. Upon written request, the commissioner will furnish
a summary of the basis for refusal to issue a license, which
document is privileged and not subject to chapter 42.17
RCW.
(6) Licensed attorneys at law of this state when acting in
their professional capacity as such are exempt from this section. [1993 c 462 § 24.]
48.94.015
48.94.015 Written authorization required between a
reinsurance intermediary-broker and an insurer—Minimum provisions. Brokers transactions between a reinsurance intermediary-broker and the insurer it represents in such
capacity may be entered into only under a written authorization, specifying the responsibilities of each party. The authorization must, at a minimum, provide that:
[Title 48 RCW—page 372]
(1) The insurer may terminate the reinsurance intermediary-broker's authority at any time.
(2) The reinsurance intermediary-broker shall render
accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges, and other fees received by, or owing, to
the reinsurance intermediary-broker, and remit all funds due
to the insurer within thirty days of receipt.
(3) All funds collected for the insurer's account must be
held by the reinsurance intermediary-broker in a fiduciary
capacity in a bank that is a qualified United States financial
institution as defined in this chapter.
(4) The reinsurance intermediary-broker will comply
with RCW 48.94.020.
(5) The reinsurance intermediary-broker will comply
with the written standards established by the insurer for the
cession or retrocession of all risks.
(6) The reinsurance intermediary-broker will disclose to
the insurer any relationship with any reinsurer to which business will be ceded or retroceded. [1993 c 462 § 25.]
48.94.020
48.94.020 Accounts and records maintained by reinsurance intermediary-broker—Access by insurer. (1) For
at least ten years after expiration of each contract of reinsurance transacted by the reinsurance intermediary-broker, the
reinsurance intermediary-broker shall keep a complete record
for each transaction showing:
(a) The type of contract, limits, underwriting restrictions,
classes, or risks and territory;
(b) Period of coverage, including effective and expiration dates, cancellation provisions, and notice required of
cancellation;
(c) Reporting and settlement requirements of balances;
(d) Rate used to compute the reinsurance premium;
(e) Names and addresses of assuming reinsurers;
(f) Rates of all reinsurance commissions, including the
commissions on any retrocessions handled by the reinsurance
intermediary-broker;
(g) Related correspondence and memoranda;
(h) Proof of placement;
(i) Details regarding retrocessions handled by the reinsurance intermediary-broker including the identity of retrocessionaires and percentage of each contract assumed or
ceded;
(j) Financial records, including but not limited to, premium and loss accounts; and
(k) When the reinsurance intermediary-broker procures a
reinsurance contract on behalf of a licensed ceding insurer:
(i) Directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the
risk; or
(ii) If placed through a representative of the assuming
reinsurer, other than an employee, written evidence that the
reinsurer has delegated binding authority to the representative.
(2) The insurer has access and the right to copy and audit
all accounts and records maintained by the reinsurance intermediary-broker related to its business in a form usable by the
insurer. [1993 c 462 § 26.]
(2004 Ed.)
Reinsurance Intermediary Act
48.94.025
48.94.025 Restrictions on insurer—Obtaining services—Employees—Financial condition of reinsurance
intermediary. (1) An insurer may not engage the services of
a person, firm, association, or corporation to act as a reinsurance intermediary-broker on its behalf unless the person is
licensed as required by RCW 48.94.010(1).
(2) An insurer may not employ an individual who is
employed by a reinsurance intermediary-broker with which it
transacts business, unless the reinsurance intermediary-broker is under common control with the insurer and subject to
the Insurer Holding Company Act, chapter 48.31B RCW.
(3) The insurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-broker with which it transacts business. [1993 c 462 §
27.]
48.94.030
48.94.030 Contract required between a reinsurance
intermediary-manager and a reinsurer—Minimum provisions. Transactions between a reinsurance intermediarymanager and the reinsurer it represents in such capacity may
be entered into only under a written contract, specifying the
responsibilities of each party, which shall be approved by the
reinsurer's board of directors. At least thirty days before the
reinsurer assumes or cedes business through the reinsurance
intermediary-manager, a true copy of the approved contract
must be filed with the commissioner for approval. The contract must, at a minimum, provide that:
(1) The reinsurer may terminate the contract for cause
upon written notice to the reinsurance intermediary-manager.
The reinsurer may immediately suspend the authority of the
reinsurance intermediary-manager to assume or cede business during the pendency of a dispute regarding the cause for
termination.
(2) The reinsurance intermediary-manager shall render
accounts to the reinsurer accurately detailing all material
transactions, including information necessary to support all
commissions, charges, and other fees received by, or owing
to, the reinsurance intermediary-manager, and remit all funds
due under the contract to the reinsurer on not less than a
monthly basis.
(3) All funds collected for the reinsurer's account must
be held by the reinsurance intermediary-manager in a fiduciary capacity in a bank that is a qualified United States
financial institution. The reinsurance intermediary-manager
may retain no more than three months' estimated claims payments and allocated loss adjustment expenses. The reinsurance intermediary-manager shall maintain a separate bank
account for each reinsurer that it represents.
(4) For at least ten years after expiration of each contract
of reinsurance transacted by the reinsurance intermediarymanager, the reinsurance intermediary-manager shall keep a
complete record for each transaction showing:
(a) The type of contract, limits, underwriting restrictions,
classes, or risks and territory;
(b) Period of coverage, including effective and expiration dates, cancellation provisions, and notice required of
cancellation, and disposition of outstanding reserves on covered risks;
(c) Reporting and settlement requirements of balances;
(d) Rate used to compute the reinsurance premium;
(e) Names and addresses of reinsurers;
(2004 Ed.)
48.94.030
(f) Rates of all reinsurance commissions, including the
commissions on any retrocessions handled by the reinsurance
intermediary-manager;
(g) Related correspondence and memoranda;
(h) Proof of placement;
(i) Details regarding retrocessions handled by the reinsurance intermediary-manager, as permitted by RCW
48.94.040(4), including the identity of retrocessionaires and
percentage of each contract assumed or ceded;
(j) Financial records, including but not limited to, premium and loss accounts; and
(k) When the reinsurance intermediary-manager places a
reinsurance contract on behalf of a ceding insurer:
(i) Directly from an assuming reinsurer, written evidence
that the assuming reinsurer has agreed to assume the risk; or
(ii) If placed through a representative of the assuming
reinsurer, other than an employee, written evidence that the
reinsurer has delegated binding authority to the representative.
(5) The reinsurer has access and the right to copy all
accounts and records maintained by the reinsurance intermediary-manager related to its business in a form usable by the
reinsurer.
(6) The reinsurance intermediary-manager may not
assign the contract in whole or in part.
(7) The reinsurance intermediary-manager shall comply
with the written underwriting and rating standards established by the insurer for the acceptance, rejection, or cession
of all risks.
(8) The rates, terms, and purposes of commissions,
charges, and other fees that the reinsurance intermediarymanager may levy against the reinsurer are clearly specified.
(9) If the contract permits the reinsurance intermediarymanager to settle claims on behalf of the reinsurer:
(a) All claims will be reported to the reinsurer in a timely
manner;
(b) A copy of the claim file will be sent to the reinsurer
at its request or as soon as it becomes known that the claim:
(i) Has the potential to exceed the lesser of an amount
determined by the commissioner or the limit set by the reinsurer;
(ii) Involves a coverage dispute;
(iii) May exceed the reinsurance intermediary-manager's
claims settlement authority;
(iv) Is open for more than six months; or
(v) Is closed by payment of the lesser of an amount set by
the commissioner or an amount set by the reinsurer;
(c) All claim files are the joint property of the reinsurer
and reinsurance intermediary-manager. However, upon an
order of liquidation of the reinsurer, the files become the sole
property of the reinsurer or its estate; the reinsurance intermediary-manager has reasonable access to and the right to copy
the files on a timely basis;
(d) Settlement authority granted to the reinsurance intermediary-manager may be terminated for cause upon the reinsurer's written notice to the reinsurance intermediary-manager or upon the termination of the contract. The reinsurer
may suspend the settlement authority during the pendency of
a dispute regarding the cause of termination.
(10) If the contract provides for a sharing of interim profits by the reinsurance intermediary-manager, such interim
[Title 48 RCW—page 373]
48.94.035
Title 48 RCW: Insurance
profits will not be paid until one year after the end of each
underwriting period for property business and five years after
the end of each underwriting period for casualty business, or
a later period set by the commissioner for specified lines of
insurance, and not until the adequacy of reserves on remaining claims has been verified under RCW 48.94.040(3).
(11) The reinsurance intermediary-manager shall annually provide the reinsurer with a statement of its financial
condition prepared by an independent certified accountant.
(12) The reinsurer shall periodically, at least semiannually, conduct an on-site review of the underwriting and
claims processing operations of the reinsurance intermediary-manager.
(13) The reinsurance intermediary-manager shall disclose to the reinsurer any relationship it has with an insurer
before ceding or assuming any business with the insurer
under this contract.
(14) Within the scope of its actual or apparent authority
the acts of the reinsurance intermediary-manager are deemed
to be the acts of the reinsurer on whose behalf it is acting.
[1993 c 462 § 28.]
48.94.035
48.94.035 Restrictions on reinsurance intermediary-manager—Retrocessions—Syndicates—Licenses—
Employees. The reinsurance intermediary-manager may
not:
(1) Cede retrocessions on behalf of the reinsurer, except
that the reinsurance intermediary-manager may cede facultative retrocessions under obligatory automatic agreements if
the contract with the reinsurer contains reinsurance underwriting guidelines for the retrocessions. The guidelines must
include a list of reinsurers with which the automatic agreements are in effect, and for each such reinsurer, the coverages
and amounts or percentages that may be reinsured, and commission schedules.
(2) Commit the reinsurer to participate in reinsurance
syndicates.
(3) Appoint a reinsurance intermediary without assuring
that the reinsurance intermediary is lawfully licensed to
transact the type of reinsurance for which he or she is
appointed.
(4) Without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that
exceeds the lesser of an amount specified by the reinsurer or
one percent of the reinsurer's policyholder's surplus as of
December 31st of the last complete calendar year.
(5) Collect a payment from a retrocessionaire or commit
the reinsurer to a claim settlement with a retrocessionaire,
without prior approval of the reinsurer. If prior approval is
given, a report must be promptly forwarded to the reinsurer.
(6) Jointly employ an individual who is employed by the
reinsurer unless the reinsurance intermediary-manager is
under common control with the reinsurer subject to the
Insurer Holding Company Act, chapter 48.31B RCW.
(7) Appoint a subreinsurance intermediary-manager.
[1993 c 462 § 29.]
48.94.040
48.94.040 Restrictions on reinsurer—Financial condition of reinsurance intermediary-manager—Loss
reserves—Retrocessions—Termination of contract—
[Title 48 RCW—page 374]
Board of directors. (1) A reinsurer may not engage the services of a person, firm, association, or corporation to act as a
reinsurance intermediary-manager on its behalf unless the
person is licensed as required by RCW 48.94.010(2).
(2) The reinsurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary-manager that the reinsurer has had prepared by an independent certified accountant in a form acceptable to the commissioner.
(3) If a reinsurance intermediary-manager establishes
loss reserves, the reinsurer shall annually obtain the opinion
of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the reinsurance intermediary-manager. This opinion is in addition to any other required loss reserve certification.
(4) Binding authority for all retrocessional contracts or
participation in reinsurance syndicates must rest with an
officer of the reinsurer who is not affiliated with the reinsurance intermediary-manager.
(5) Within thirty days of termination of a contract with a
reinsurance intermediary-manager, the reinsurer shall provide written notification of the termination to the commissioner.
(6) A reinsurer may not appoint to its board of directors
an officer, director, employee, controlling shareholder, or
subproducer of its reinsurance intermediary-manager. This
subsection does not apply to relationships governed by the
Insurer Holding Company Act, chapter 48.31B RCW, or, if
applicable, the Broker-controlled Property and Casualty
Insurer Act, chapter 48.97 RCW. [1993 c 462 § 30.]
48.94.045
48.94.045 Examination by commissioner. (1) A reinsurance intermediary is subject to examination by the commissioner. The commissioner has access to all books, bank
accounts, and records of the reinsurance intermediary in a
form usable to the commissioner.
(2) A reinsurance intermediary-manager may be examined as if it were the reinsurer. [1993 c 462 § 31.]
48.94.050
48.94.050 Violations of chapter—Penalties—Judicial
review. (1) A reinsurance intermediary, insurer, or reinsurer
found by the commissioner, after a hearing conducted in
accordance with chapters 48.17 and 34.05 RCW, to be in violation of any provision of this chapter, shall:
(a) For each separate violation, pay a penalty in an
amount not exceeding five thousand dollars;
(b) Be subject to revocation or suspension of its license;
and
(c) If a violation was committed by the reinsurance intermediary, make restitution to the insurer, reinsurer, rehabilitator, or liquidator of the insurer or reinsurer for the net losses
incurred by the insurer or reinsurer attributable to the violation.
(2) The decision, determination, or order of the commissioner under subsection (1) of this section is subject to judicial review under this title and chapter 34.05 RCW.
(3) Nothing contained in this section affects the right of
the commissioner to impose any other penalties provided in
this title.
(2004 Ed.)
Motor Vehicle Service Contracts
(4) Nothing contained in this chapter is intended to or in
any manner limits or restricts the rights of policyholders,
claimants, creditors, or other third parties or confer any rights
to those persons. [1993 c 462 § 32.]
48.94.055
48.94.055 Rule making. The commissioner may adopt
reasonable rules for the implementation and administration of
this chapter. [1993 c 462 § 33.]
48.94.900
48.94.900 Short title. This chapter may be known and
cited as the Reinsurance Intermediary Act. [1993 c 462 §
22.]
48.96.045
wear and tear, and that is issued by an insurance company
authorized to do business in this state.
(4) "Motor vehicle service contract reimbursement insurance policy" or "reimbursement insurance policy" means a
policy of insurance providing coverage for all obligations and
liabilities incurred by a motor vehicle service contract provider under the terms of motor vehicle service contracts
issued by the provider.
(5) "Motor vehicle" means any vehicle subject to registration under chapter 46.16 RCW.
(6) "Service contract holder" means a person who purchases a motor vehicle service contract. [1987 c 99 § 1.]
48.96.020
48.94.901
48.94.901 Severability—Implementation—1993 c
462. See RCW 48.31B.901 and 48.31B.902.
Chapter 48.96 RCW
MOTOR VEHICLE SERVICE CONTRACTS
Chapter 48.96
(Formerly: Motor vehicle mechanical breakdown insurance)
Sections
48.96.005
48.96.010
48.96.020
48.96.025
48.96.030
48.96.040
48.96.045
48.96.047
48.96.050
48.96.060
48.96.900
48.96.901
48.96.020 Reimbursement policy required for sale of
service contract. A motor vehicle service contract shall not
be issued, sold, or offered for sale in this state unless the provider of the service contract is insured under a motor vehicle
service contract reimbursement insurance policy issued by an
insurer authorized to do business in this state. [1987 c 99 §
2.]
48.96.025
Purpose.
Definitions.
Reimbursement policy required for sale of service contract.
Reimbursement policy—Insurer's responsibility.
Reimbursement policy—Required provisions.
Service contract—Required statements.
Service contract—Notice to holder.
Service contract—Holder's right to return.
Service contracts—Excluded parties.
Noncompliance as unfair competition, trade practice—Remedies.
Application of chapter—Date.
Effective date—1990 c 239 §§ 2-10.
48.96.025 Reimbursement policy—Insurer's responsibility. (1) Every insurer issuing a reimbursement insurance
policy shall include, as a part of the policy, the motor vehicle
service contract(s) that the reimbursement insurance policy is
intended to cover. Notwithstanding RCW 48.18.100, subsequent changes to the motor vehicle service contract(s) must
be filed by the insurer with the commissioner no later than
thirty days after the date of the change.
(2) Every insurer issuing a reimbursement insurance policy must require that premiums due for coverage under the
policy be paid directly by the provider to the insurer or its
agent. [1990 c 239 § 3.]
48.96.005
48.96.005 Purpose. The purpose of this chapter is to
protect the public and contract providers from losses arising
from the mismanagement of funds paid for motor vehicle service contracts, to better inform the public of their rights and
obligations under the contracts, to permit purchasers of such
contracts the opportunity to return the contract for a refund,
and to require the liabilities owed under these contracts to be
fully insured, rather than partially insured, or insured only in
the event of provider default. [1990 c 239 § 2.]
48.96.030
48.96.030 Reimbursement policy—Required provisions. A motor vehicle service contract reimbursement insurance policy shall not be issued, sold, or offered for sale in this
state unless the reimbursement insurance policy conspicuously states that the issuer of the policy shall pay on behalf of
the provider all sums which the provider is legally obligated
to pay according to the provider's contractual obligations
under the motor vehicle service contracts issued or sold by
the provider. [1990 c 239 § 6; 1987 c 99 § 3.]
48.96.010
48.96.010 Definitions. (1) "Motor vehicle service contract" or "service contract" means a contract or agreement
given for consideration over and above the lease or purchase
price of a motor vehicle that undertakes to perform or provide
repair or replacement service, or indemnification for that service, for the operational or structural failure of a motor vehicle due to a defect in materials or skill of work or normal
wear and tear, but does not include mechanical breakdown
insurance.
(2) "Motor vehicle service contract provider" or "provider" means a person who issues, makes, provides, sells, or
offers to sell a motor vehicle service contract.
(3) "Mechanical breakdown insurance" means a policy,
contract, or agreement that undertakes to perform or provide
repair or replacement service, or indemnification for that service, for the operational or structural failure of a motor vehicle due to a defect in materials or skill of work or normal
(2004 Ed.)
48.96.040
48.96.040 Service contract—Required statements. A
motor vehicle service contract shall not be issued, sold, or
offered for sale in this state unless the contract conspicuously
states that the obligations of the provider to the service contract holder are guaranteed under the reimbursement insurance policy, and unless the contract conspicuously states the
name and address of the issuer of the reimbursement insurance policy, the applicable policy number, and the means by
which a service contract holder may file a claim under the
policy. [1990 c 239 § 7; 1987 c 99 § 4.]
48.96.045
48.96.045 Service contract—Notice to holder. A
motor vehicle service contract shall not be issued, sold, or
offered for sale in this state unless the contract contains a
conspicuous statement that has been initialed by the service
contract holder and discloses:
[Title 48 RCW—page 375]
48.96.047
Title 48 RCW: Insurance
(1) Any material conditions that the service contract
holder must meet to maintain coverage under the contract
including, but not limited to any maintenance schedule to
which the service contract holder must adhere, any requirement placed on the service contract holder for documenting
repair or maintenance work, and any procedure to which the
service contract holder must adhere for filing claims;
(2) The work and parts covered by the contract;
(3) Any time or mileage limitations;
(4) That the implied warranty of merchantability on the
motor vehicle is not waived if the contract has been purchased within ninety days of the purchase date of the motor
vehicle from a provider who also sold the motor vehicle covered by the contract;
(5) Any exclusions of coverage; and
(6) The contract holder's right to return the contract for a
refund, which right can be no more restrictive than provided
for in RCW 48.96.047. [1990 c 239 § 4.]
48.96.047
48.96.047 Service contract—Holder's right to return.
(1) At a minimum, every provider shall permit the service
contract holder to return the contract within thirty days of its
purchase if no claim has been made under the contract, and
shall refund to the holder the full purchase price of the contract unless the service contract holder returns the contract ten
or more days after its purchase, in which case the provider
may charge a cancellation fee not exceeding twenty-five dollars. A ten percent penalty shall be added to any refund that is
not paid within thirty days of return of the contract to the provider. If a contract holder returns the contract within thirty
days of its purchase or within such longer time period as permitted under the contract, the contract shall be void from the
beginning and the parties shall be in the same position as if no
contract had been issued.
(2) If a service contract holder returns the contract in
accordance with this section, the insurer issuing the reimbursement insurance policy covering the contract shall refund
to the provider the full premium paid by the provider for coverage of the contract. [1990 c 239 § 5.]
48.96.050
48.96.050 Service contracts—Excluded parties.
RCW 48.96.020, 48.96.030, and 48.96.040 do not apply to
motor vehicle service contracts issued by a motor vehicle
manufacturer or import distributor covering vehicles manufactured or imported by the motor vehicle manufacturer or
import distributor. [1990 c 239 § 8; 1987 c 99 § 5.]
48.96.060
48.96.060 Noncompliance as unfair competition,
trade practice—Remedies. Failure to comply with the provisions of this chapter is an unfair method of competition and
an unfair or deceptive act or practice in the conduct of a trade
or commerce, as specifically contemplated by RCW
19.86.020, and is a violation of the Consumer Protection Act,
chapter 19.86 RCW. Any service contract holder injured as a
result of a violation of a provision of this chapter shall be
entitled to maintain an action pursuant to chapter 19.86 RCW
against the motor vehicle service contract provider and the
insurer issuing the applicable motor vehicle service contract
reimbursement insurance policy and shall be entitled to all of
the rights and remedies afforded by that chapter. Any suc[Title 48 RCW—page 376]
cessful claimant under this section shall also be entitled to
reasonable attorneys' fees. [1990 c 239 § 9; 1987 c 99 § 6.]
48.96.900
48.96.900 Application of chapter—Date. This chapter
shall apply to all motor vehicle service contracts issued, sold,
or offered for sale on or after January 1, 1988. [1987 c 99 §
7.]
48.96.901
48.96.901 Effective date—1990 c 239 §§ 2-10. Sections 2 through 10 of this act shall take effect January 1, 1991.
[1990 c 239 § 11.]
Chapter 48.97 RCW
BROKER-CONTROLLED PROPERTY AND
CASUALTY INSURER ACT
Chapter 48.97
Sections
48.97.005
48.97.010
48.97.015
48.97.020
48.97.025
48.97.900
48.97.901
Definitions.
Application.
Business placed with a controlled insurer—Application of section—Exceptions—Written contract required—Audit committee—Report to commissioner.
Relationship between broker and controlled insurer—Broker's
duty to disclose—Subbrokers.
Broker's failure to comply with chapter—Commissioner's
power—Damages—Penalties.
Short title.
Severability—Implementation—1993 c 462.
48.97.005
48.97.005 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Accredited state" means a state in which the insurance department or regulatory agency has qualified as meeting the minimum financial regulatory standards promulgated
and established from time to time by the National Association of Insurance Commissioners.
(2) "Broker" means an insurance broker or brokers or
any other person, firm, association, or corporation, when, for
compensation, commission, or other thing of value, the person, firm, association, or corporation acts or aids in any manner in soliciting, negotiating, or procuring the making of an
insurance contract on behalf of an insured other than the person, firm, association, or corporation.
(3) "Control" or "controlled by" has the meaning
ascribed in RCW 48.31B.005(2).
(4) "Controlled insurer" means a licensed insurer that is
controlled, directly or indirectly, by a broker.
(5) "Controlling producer" means a broker who, directly
or indirectly, controls an insurer.
(6) "Licensed insurer" or "insurer" means a person, firm,
association, or corporation licensed to transact property and
casualty insurance business in this state. The following,
among others, are not licensed insurers for purposes of this
chapter:
(a) Risk retention groups as defined in the Superfund
Amendments Reauthorization Act of 1986, P.L. 99-499, 100
Stat. 1613 (1986), the Risk Retention Act, 15 U.S.C. Sec.
3901 et seq. (1982 & Supp. 1986), and chapter 48.92 RCW;
(b) Residual market pools and joint underwriting associations; and
(c) Captive insurers. For the purposes of this chapter,
captive insurers are insurance companies owned by another
(2004 Ed.)
Broker-Controlled Property and Casualty Insurer Act
organization, whose exclusive purpose is to insure risks of
the parent organization and affiliated companies or, in the
case of groups and associations, insurance organizations
owned by the insureds whose exclusive purpose is to insure
risks to member organizations or group members, or both,
and their affiliates. [1993 c 462 § 17.]
48.97.010
48.97.010 Application. This chapter applies to licensed
insurers either domiciled in this state or domiciled in a state
that is not an accredited state having in effect a substantially
similar law. All provisions of the Insurer Holding Company
Act, chapter 48.31B RCW, or its successor act, to the extent
they are not superseded by this chapter, continue to apply to
all parties within the holding company systems subject to this
chapter. [1993 c 462 § 18.]
48.97.015
48.97.015 Business placed with a controlled
insurer—Application of section—Exceptions—Written
contract required—Audit committee—Report to commissioner. (1)(a) This section applies in a particular calendar
year if in that calendar year the aggregate amount of gross
written premium on business placed with a controlled insurer
by a controlling broker is equal to or greater than five percent
of the admitted assets of the controlled insurer, as reported in
the controlled insurer's quarterly statement filed as of September 30th of the prior year.
(b) Notwithstanding (a) of this subsection, this section
does not apply if:
(i) The controlling producer:
(A) Places insurance only with the controlled insurer; or
only with the controlled insurer and a member or members of
the controlled insurer's holding company system, or the controlled insurer's parent, affiliate, or subsidiary and receives no
compensation based upon the amount of premiums written in
connection with the insurance; and
(B) Accepts insurance placements only from nonaffiliated subbrokers, and not directly from insureds; and
(ii) The controlled insurer, except for business written
through a residual market facility such as the assigned risk
plan, fair plans, or other such plans, accepts insurance business only from a controlling broker, a broker controlled by
the controlled insurer, or a broker that is a subsidiary of the
controlled insurer.
(2) A controlled insurer may not accept business from a
controlling broker and a controlling broker may not place
business with a controlled insurer unless there is a written
contract between the controlling broker and the insurer specifying the responsibilities of each party, which contract has
been approved by the board of directors of the insurer and
contains the following minimum provisions:
(a) The controlled insurer may terminate the contract for
cause, upon written notice to the controlling broker. The controlled insurer shall suspend the authority of the controlling
broker to write business during the pendency of a dispute
regarding the cause for the termination;
(b) The controlling broker shall render accounts to the
controlling insurer detailing all material transactions, including information necessary to support all commissions,
charges, and other fees received by, or owing to, the controlling broker;
(2004 Ed.)
48.97.015
(c) The controlling broker shall remit all funds due under
the terms of the contract to the controlling insurer on at least
a monthly basis. The due date must be fixed so that premiums
or installments collected are remitted no later than ninety
days after the effective date of a policy placed with the controlling insurer under this contract;
(d) The controlling broker shall hold all funds collected
for the controlled insurer's account in a fiduciary capacity, in
one or more appropriately identified bank accounts in banks
that are members of the federal reserve system, in accordance
with the applicable provisions of this title. However, funds of
a controlling broker not required to be licensed in this state
must be maintained in compliance with the requirements of
the controlling broker's domiciliary jurisdiction;
(e) The controlling broker shall maintain separately
identifiable records of business written for the controlled
insurer;
(f) The contract shall not be assigned in whole or in part
by the controlling broker;
(g) The controlled insurer shall provide the controlling
broker with its underwriting standards, rules, and procedures,
manuals setting forth the rates to be charged, and the conditions for the acceptance or rejection of risks. The controlling
broker shall adhere to the standards, rules, procedures, rates,
and conditions that are the same as those applicable to
comparable business placed with the controlled insurer by a
broker other than the controlling broker;
(h) The rates of the controlling broker's commissions,
charges, and other fees must be no greater than those applicable to comparable business placed with the controlled insurer
by brokers other than controlling brokers. For purposes of (g)
and (h) of this subsection, examples of comparable business
include the same lines of insurance, same kinds of insurance,
same kinds of risks, similar policy limits, and similar quality
of business;
(i) If the contract provides that the controlling broker, on
insurance business placed with the insurer, is to be compensated contingent upon the insurer's profits on that business,
then the compensation shall not be determined and paid until
at least five years after the premiums on liability insurance
are earned and at least one year after the premiums are earned
on any other insurance. In no event may the commissions be
paid until the adequacy of the controlled insurer's reserves on
remaining claims has been independently verified under subsection (3) of this section;
(j) The insurer may establish a different limit on the controlling broker's writings in relation to the controlled insurer's
surplus and total writings for each line or subline of business.
The controlled insurer shall notify the controlling broker
when the applicable limit is approached and may not accept
business from the controlling broker if the limit is reached.
The controlling broker may not place business with the controlled insurer if it has been notified by the controlled insurer
that the limit has been reached; and
(k) The controlling broker may negotiate but may not
bind reinsurance on behalf of the controlled insurer on business the controlling broker places with the controlled insurer,
except that the controlling broker may bind facultative reinsurance contracts under obligatory facultative agreements if
the contract with the controlled insurer contains underwriting
guidelines including, for both reinsurance assumed and
[Title 48 RCW—page 377]
48.97.020
Title 48 RCW: Insurance
ceded, a list of reinsurers with which the automatic agreements are in effect, the coverages and amounts of percentages
that may be reinsured, and commission schedules.
(3) Every controlled insurer shall have an audit committee of the board of directors composed of independent directors. The audit committee shall annually meet with management, the insurer's independent certified public accountants,
and an independent casualty actuary or other independent
loss reserve specialist acceptable to the commissioner to
review the adequacy of the insurer's loss reserves.
(4)(a) In addition to any other required loss reserve certification, the controlled insurer shall, annually, on April 1st of
each year, file with the commissioner an opinion of an independent casualty actuary, or such other independent loss
reserve specialist acceptable to the commissioner, reporting
loss ratios for each line of business written and attesting to
the adequacy of loss reserves established for losses incurred
and outstanding as of year-end, including losses incurred but
not reported, on business placed by the broker; and
(b) The controlled insurer shall annually report to the
commissioner the amount of commissions paid to the producer, the percentage that amount represents of the net premiums written, and comparable amounts and percentages paid
to noncontrolling brokers for placements of the same kinds of
insurance. [1993 c 462 § 19.]
civil action for recovery of damages or other appropriate
sanctions for the benefit of the insurer.
(3) Nothing contained in this section alters or affects the
right of the commissioner to impose other penalties provided
for in this title.
(4) Nothing contained in this section alters or affects the
rights of policyholders, claimants, creditors, or other third
parties. [1993 c 462 § 21.]
48.97.900
48.97.900 Short title. This chapter may be known and
cited as the Business Transacted with Broker-controlled
Property and Casualty Insurer Act. [1993 c 462 § 16.]
48.97.901
462.
48.97.901 Severability—Implementation—1993 c
See RCW 48.31B.901 and 48.31B.902.
Chapter 48.98
Sections
48.98.005
48.98.010
48.98.015
48.98.020
48.97.020
48.97.020 Relationship between broker and controlled insurer—Broker's duty to disclose—Subbrokers.
The broker, before the effective date of the policy, shall
deliver written notice to the prospective insured disclosing
the relationship between the broker and the controlled
insurer, except that, if the business is placed through a subbroker who is not a controlling broker, the controlling broker
shall retain in his or her records a signed commitment from
the subbroker that the subbroker is aware of the relationship
between the insurer and the broker and that the subbroker has
notified or will notify the insured. [1993 c 462 § 20.]
48.97.025
48.97.025 Broker's failure to comply with chapter—
Commissioner's power—Damages—Penalties. (1)(a) If
the commissioner believes that the controlling broker has not
materially complied with this chapter, or a rule adopted or
order issued under this chapter, the commissioner may after
notice and opportunity to be heard, order the controlling broker to cease placing business with the controlled insurer; and
(b) If it is found that because of material noncompliance
that the controlled insurer or any policyholder thereof has
suffered loss or damage, the commissioner may maintain a
civil action or intervene in an action brought by or on behalf
of the insurer or policyholder for recovery of compensatory
damages for the benefit of the insurer or policyholder or other
appropriate relief.
(2) If an order for liquidation or rehabilitation of the controlled insurer has been entered under chapter 48.31 RCW,
and the receiver appointed under that order believes that the
controlling broker or any other person has not materially
complied with this chapter, or a rule adopted or order issued
under this chapter, and the insurer suffered any loss or damage from the noncompliance, the receiver may maintain a
[Title 48 RCW—page 378]
Chapter 48.98 RCW
MANAGING GENERAL AGENTS ACT
48.98.025
48.98.030
48.98.035
48.98.040
48.98.900
48.98.901
Definitions.
Requirements for managing general agent—License—Bond—
Errors and omissions policy.
Contract required between a managing general agent and an
insurer—Minimum provisions.
Requirements for insurer—Audit, loss reserves, and on-site
review of managing general agent—Notice to commissioner—Quarterly review of books and records—Board of
director.
Examinations—Acts of a managing general agent are acts of
the insurer.
Violations of chapter—Penalties—Judicial review.
Rule making.
Continued use of a managing general agent—Compliance with
chapter.
Short title.
Severability—Implementation—1993 c 462.
48.98.005
48.98.005 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Actuary" means a person who is a member in good
standing of the American Academy of Actuaries.
(2) "Insurer" means a person having a certificate of
authority in this state as an insurance company under RCW
48.01.050.
(3) "Managing general agent" means:
(a) A person who manages all or part of the insurance
business of an insurer, including the management of a separate division, department, or underwriting office, and acts as
a representative of the insurer whether known as a managing
general agent, manager, or other similar term, and who, with
or without the authority, either separately or together with
affiliates, produces, directly or indirectly, and underwrites an
amount of gross direct written premium equal to or more than
five percent of the policyholder surplus as reported in the last
annual statement of the insurer in any one quarter or year
together with one or more of the following activities related
to the business produced:
(i) Adjusts or pays claims in excess of an amount to be
determined by the commissioner; or
(ii) Negotiates reinsurance on behalf of the insurer.
(2004 Ed.)
Managing General Agents Act
(b) Notwithstanding (a) of this subsection, the following
persons may not be managing general agents for purposes of
this chapter:
(i) An employee of the insurer;
(ii) A United States manager of the United States branch
of an alien insurer;
(iii) An underwriting manager who, under a contract,
manages all of the insurance operations of the insurer, is
under common control with the insurer, subject to the Insurer
Holding Company Act, chapter 48.31B RCW, and whose
compensation is not based on the volume of premiums written; or
(iv) The attorney-in-fact authorized by and acting for the
subscribers of a reciprocal insurer or interinsurance exchange
under powers of attorney.
(4) "Underwrite" means to accept or reject risks on
behalf of the insurer. [1993 c 462 § 35.]
48.98.010
48.98.010 Requirements for managing general
agent—License—Bond—Errors and omissions policy.
(1) No person may act in the capacity of a managing general
agent with respect to risks located in this state, for an insurer
authorized by this state, unless that person is licensed in this
state as an agent, under chapter 48.17 RCW, for the lines of
insurance involved and is designated as a managing general
agent and appointed as such by the insurer.
(2) No person may act in the capacity of a managing general agent representing an insurer domiciled in this state with
respect to risks located outside this state unless that person is
licensed as an agent in this state, under chapter 48.17 RCW,
for the lines of insurance involved and is designated as a
managing general agent and appointed as such by the insurer.
(3) The commissioner may require a bond for the protection of each insurer.
(4) The commissioner may require the managing general
agent to maintain an errors and omissions policy. [1993 c
462 § 36.]
48.98.015
48.98.015 Contract required between a managing
general agent and an insurer—Minimum provisions. No
managing general agent may place business with an insurer
unless there is in force a written contract between the managing general agent and the insurer that sets forth the
responsibilities of each party and, where both parties share
responsibility for a particular function, specifies the division
of the responsibilities, and that contains the following minimum provisions:
(1) The insurer may terminate the contract for cause
upon written notice to the managing general agent. The
insurer may suspend the underwriting authority of the managing general agent during the pendency of a dispute regarding the cause for termination.
(2) The managing general agent shall render accounts to
the insurer detailing all transactions and remit all funds due
under the contract to the insurer on not less than a monthly
basis.
(3) The managing general agent shall hold funds collected for the account of an insurer in a fiduciary capacity in
a financial institution located in this state that is a member of
the federal reserve system. This account must be used for all
(2004 Ed.)
48.98.015
payments on behalf of the insurer. The managing general
agent may retain no more than three months' estimated claims
payments and allocated loss adjustment expenses.
(4) The managing general agent shall maintain separate
records of business written for each insurer. The insurer has
access to and the right to copy all accounts and records
related to its business in a form usable by the insurer, and the
commissioner has access to all books, bank accounts, and
records of the managing general agent in a form usable to the
commissioner. Those records shall be retained according to
the requirements of this title and rules adopted under it.
(5) The managing general agent may not assign the contract in whole or part.
(6)(a) Appropriate underwriting guidelines must include
at least the following: The maximum annual premium volume; the basis of the rates to be charged; the types of risks
that may be written; maximum limits of liability; applicable
exclusions; territorial limitations; policy cancellation provisions; and the maximum policy period.
(b) The insurer has the right to cancel or not renew any
policy of insurance, subject to the applicable laws and rules,
including those in chapter 48.18 RCW.
(7) If the contract permits the managing general agent to
settle claims on behalf of the insurer:
(a) All claims must be reported to the insurer in a timely
manner.
(b) A copy of the claim file must be sent to the insurer at
its request or as soon as it becomes known that the claim:
(i) Has the potential to exceed an amount determined by
the commissioner, or exceeds the limit set by the insurer,
whichever is less;
(ii) Involves a coverage dispute;
(iii) May exceed the managing general agent's claims
settlement authority;
(iv) Is open for more than six months; or
(v) Is closed by payment in excess of an amount set by
the commissioner or an amount set by the insurer, whichever
is less.
(c) All claim files are the joint property of the insurer and
the managing general agent. However, upon an order of liquidation of the insurer, those files become the sole property
of the insurer or its liquidator or successor. The managing
general agent has reasonable access to and the right to copy
the files on a timely basis.
(d) Settlement authority granted to the managing general
agent may be terminated for cause upon the insurer's written
notice to the managing general agent or upon the termination
of the contract. The insurer may suspend the managing general agent's settlement authority during the pendency of a dispute regarding the cause for termination.
(8) Where electronic claims files are in existence, the
contract must address the timely transmission of the data.
(9) If the contract provides for a sharing of interim profits by the managing general agent, and the managing general
agent has the authority to determine the amount of the interim
profits by establishing loss reserves or controlling claim payments or in any other manner, interim profits shall not be paid
to the managing general agent until one year after they are
earned for property insurance business and five years after
they are earned on casualty business and not until the profits
have been verified under RCW 48.98.020.
[Title 48 RCW—page 379]
48.98.020
Title 48 RCW: Insurance
(10) The managing general agent may not:
(a) Bind reinsurance or retrocessions on behalf of the
insurer, except that the managing general agent may bind
automatic reinsurance contracts under obligatory automatic
agreements if the contract with the insurer contains reinsurance underwriting guidelines including, for both reinsurance
assumed and ceded, a list of reinsurers with which the automatic agreements are in effect, the coverages and amounts or
percentages that may be reinsured, and commission schedules;
(b) Commit the insurer to participate in insurance or
reinsurance syndicates;
(c) Use an agent that is not appointed to represent the
insurer in accordance with the requirements of chapter 48.17
RCW;
(d) Without prior approval of the insurer, pay or commit
the insurer to pay a claim over a specified amount, net of reinsurance, that shall not exceed one percent of the insurer's policyholder surplus as of December 31st of the last-completed
calendar year;
(e) Collect a payment from a reinsurer or commit the
insurer to a claim settlement with a reinsurer, without prior
approval of the insurer. If prior approval is given, a report
shall be promptly forwarded to the insurer;
(f) Permit an agent appointed by it to serve on the
insurer's board of directors;
(g) Jointly employ an individual who is employed by the
insurer; or
(h) Appoint a submanaging general agent. [1993 c 462 §
37.]
48.98.020
48.98.020 Requirements for insurer—Audit, loss
reserves, and on-site review of managing general agent—
Notice to commissioner—Quarterly review of books and
records—Board of director. (1) The insurer shall have on
file an independent audited financial statement, in a form
acceptable to the commissioner, of each managing general
agent with which it is doing or has done business.
(2) If a managing general agent establishes loss reserves,
the insurer shall annually obtain the opinion of an actuary
attesting to the adequacy of loss reserves established for
losses incurred and outstanding on business produced by the
managing general agent. This is in addition to any other
required loss reserve certification.
(3) The insurer shall periodically, and no less frequently
than semiannually, conduct an on-site review of the underwriting and claims processing operations of the managing
general agent.
(4) Binding authority for all reinsurance contracts or participation in insurance or reinsurance syndicates must rest
with an officer of the insurer, who may not be affiliated with
the managing general agent.
(5) Within thirty days of entering into or terminating a
contract with a managing general agent, the insurer shall provide written notification of that appointment or termination to
the commissioner. Notices of appointment of a managing
general agent must include a statement of duties that the managing general agent is expected to perform on behalf of the
insurer, the lines of insurance for which the managing general
agent is to be authorized to act, and any other information the
[Title 48 RCW—page 380]
commissioner may request. This subsection applies to managing general agents operating in this state.
(6) An insurer shall review its books and records each
calendar quarter to determine if any agent has become a managing general agent. If the insurer determines that an agent
has become a managing general agent under RCW 48.98.005,
the insurer shall promptly notify the agent and the commissioner of that determination, and the insurer and agent shall
fully comply with this chapter within thirty days.
(7) An insurer may not appoint to its board of directors
an officer, director, employee, subagent, or controlling shareholder of its managing general agents. This subsection does
not apply to relationships governed by the Insurer Holding
Company Act, chapter 48.31B RCW, or, if applicable, the
business transacted with Broker-controlled Property and
Casualty Insurer Act, chapter 48.97 RCW. [1993 c 462 § 38.]
48.98.025
48.98.025 Examinations—Acts of a managing general agent are acts of the insurer. The acts of the managing
general agent are considered to be the acts of the insurer on
whose behalf it is acting. A managing general agent may be
examined as if it were the insurer, as provided in chapter
48.03 RCW. [1993 c 462 § 39.]
48.98.030
48.98.030 Violations of chapter—Penalties—Judicial
review. (1) Subject to a hearing in accordance with chapters
34.05 and 48.04 RCW, upon a finding by the commissioner
that any person has violated any provision of this chapter, the
commissioner may order:
(a) For each separate violation, a penalty in an amount of
not more than one thousand dollars;
(b) Revocation, or suspension for up to one year, of the
agent's license; and
(c) The managing general agent to reimburse the insurer,
the rehabilitator, or liquidator of the insurer for losses
incurred by the insurer caused by a violation of this chapter
committed by the managing general agent.
(2) The decision, determination, or order of the commissioner under this section is subject to judicial review under
chapters 34.05 and 48.04 RCW.
(3) Nothing contained in this section affects the right of
the commissioner to impose any other penalties provided for
in this title.
(4) Nothing contained in this chapter is intended to or in
any manner limits or restricts the rights of policyholders,
claimants, and auditors. [1993 c 462 § 40.]
48.98.035
48.98.035 Rule making. The commissioner may adopt
rules for the implementation and administration of this chapter, that shall include but are not limited to licensure of managing general agents. [1993 c 462 § 41.]
48.98.040
48.98.040 Continued use of a managing general
agent—Compliance with chapter. No insurer may continue to use the services of a managing general agent on and
after January 1, 1994, unless that use complies with this chapter. [1993 c 462 § 42.]
(2004 Ed.)
Uniform Insurers Liquidation Act
48.98.900 Short title. This chapter may be known and
cited as the Managing General Agents Act. [1993 c 462 §
34.]
48.98.900
48.98.901 Severability—Implementation—1993 c
See RCW 48.31B.901 and 48.31B.902.
48.98.901
462.
Chapter 48.99 RCW
UNIFORM INSURERS LIQUIDATION ACT
Chapter 48.99
Sections
48.99.010
48.99.011
48.99.020
48.99.030
48.99.040
48.99.050
48.99.060
48.99.070
48.99.080
48.99.900
Uniform Insurers Liquidation Act.
Insurer—Self-funded multiple employer welfare arrangement.
Delinquency proceedings—Domestic insurers.
Delinquency proceedings—Foreign insurers.
Claims of nonresidents against domestic insurer.
Claims of residence against foreign insurer.
Priority of certain claims.
Attachment, garnishment, execution stayed.
Severability—Uniformity of interpretation.
Severability—Implementation—1993 c 462.
48.99.010 Uniform Insurers Liquidation Act. This
chapter may be known and cited as the Uniform Insurers Liquidation Act. For the purposes of this chapter:
(1) "Insurer" means any person, firm, corporation, association, or aggregation of persons doing an insurance business and subject to the insurance supervisory authority of, or
to liquidation, rehabilitation, reorganization, or conservation
by, the commissioner, or the equivalent insurance supervisory official of another state.
(2) "Delinquency proceeding" means any proceeding
commenced against an insurer for the purpose of liquidating,
rehabilitating, reorganizing, or conserving such insurer.
(3) "State" means any state of the United States, and also
the District of Columbia and Puerto Rico.
(4) "Foreign country" means territory not in any state.
(5) "Domiciliary state" means the state in which an
insurer is incorporated or organized, or, in the case of an
insurer incorporated or organized in a foreign country, the
state in which such insurer, having become authorized to do
business in such state, has, at the commencement of delinquency proceedings, the largest amount of its assets held in
trust and assets held on deposit for the benefit of its policyholders or policyholders and creditors in the United States;
and any such insurer is deemed to be domiciled in such state.
(6) "Ancillary state" means any state other than a domiciliary state.
(7) "Reciprocal state" means any state other than this
state in which in substance and effect the provisions of this
chapter are in force, including the provisions requiring that
the insurance commissioner or equivalent insurance supervisory official be the receiver of a delinquent insurer.
(8) "General assets" means all property, real, personal, or
otherwise, not specifically mortgaged, pledged, deposited, or
otherwise encumbered for the security or benefit of specified
persons or a limited class or classes of persons, and as to such
specifically encumbered property the term includes all such
property or its proceeds in excess of the amount necessary to
discharge the sum or sums secured thereby. Assets held in
trust and assets held on deposit for the security or benefit of
all policyholders, or all policyholders and creditors in the
United States, shall be deemed general assets.
48.99.010
(2004 Ed.)
48.99.020
(9) "Preferred claim" means any claim with respect to
which the law of a state or of the United States accords priority of payment from the general assets of the insurer.
(10) "Special deposit claim" means any claim secured by
a deposit made pursuant to statute for the security or benefit
of a limited class or classes of persons, but not including any
general assets.
(11) "Secured claim" means any claim secured by mortgage, trust, deed, pledge, deposit as security, escrow, or otherwise, but not including special deposit claims or claims
against general assets. The term also includes claims which
more than four months prior to the commencement of delinquency proceedings in the state of the insurer's domicile have
become liens upon specific assets by reason of judicial process.
(12) "Receiver" means receiver, liquidator, rehabilitator,
or conservator as the context may require. [1993 c 462 § 78;
1961 c 194 § 12; 1947 c 79 § .31.11; Rem. Supp. 1947 §
45.31.11. Formerly RCW 48.31.110.]
48.99.011 Insurer—Self-funded multiple employer
welfare arrangement. A self-funded multiple employer
welfare arrangement, as defined in RCW 48.125.010, is an
insurer under this chapter. [2004 c 260 § 21.]
48.99.011
Severability—Effective date—2004 c 260: See RCW 48.125.900 and
48.125.901.
48.99.020 Delinquency proceedings—Domestic
insurers. (1) Whenever under the laws of this state a receiver
is to be appointed in delinquency proceedings for an insurer
domiciled in this state, the court shall appoint the commissioner as such receiver. The court shall direct the commissioner forthwith to take possession of the assets of the insurer
and to administer the same under the orders of the court.
(2) As domiciliary receiver the commissioner shall be
vested by operation of law with the title to all of the property,
contracts, and rights of action, and all of the books and
records of the insurer wherever located, as of the date of entry
of the order directing him to rehabilitate or liquidate a domestic insurer, or to liquidate the United States branch of an alien
insurer domiciled in this state, and he shall have the right to
recover the same and reduce the same to possession; except
that ancillary receivers in reciprocal states shall have, as to
assets located in their respective states, the rights and powers
which are hereinafter prescribed for ancillary receivers
appointed in this state as to assets located in this state.
(3) The filing or recording of the order directing possession to be taken, or a certified copy thereof, in the office
where instruments affecting title to property are required to
be filed or recorded shall impart the same notice as would be
imparted by a deed, bill of sale, or other evidence of title duly
filed or recorded.
(4) The commissioner as domiciliary receiver shall be
responsible on his official bond for the proper administration
of all assets coming into his possession or control. The court
may at any time require an additional bond from him or his
deputies if deemed desirable for the protection of the assets.
(5) Upon taking possession of the assets of an insurer the
domiciliary receiver shall, subject to the direction of the
court, immediately proceed to conduct the business of the
insurer or to take such steps as are authorized by the laws of
48.99.020
[Title 48 RCW—page 381]
48.99.030
Title 48 RCW: Insurance
this state for the purpose of liquidating, rehabilitating, reorganizing, or conserving the affairs of the insurer.
(6) In connection with delinquency proceedings the
commissioner may appoint one or more special deputy commissioners to act for him, and may employ such counsel,
clerks, and assistants as he deems necessary. The compensation of the special deputies, counsel, clerks, or assistants and
all expenses of taking possession of the insurer and of conducting the proceedings shall be fixed by the receiver, subject
to the approval of the court, and shall be paid out of the funds
or assets of the insurer. Within the limits of the duties
imposed upon them special deputies shall possess all the
powers given to, and, in the exercise of those powers, shall be
subject to all of the duties imposed upon the receiver with
respect to such proceedings. [1947 c 79 § .31.12; Rem. Supp.
1947 § 45.31.12. Formerly RCW 48.31.120.]
48.99.030
48.99.030 Delinquency proceedings—Foreign insurers. (1) Whenever under the laws of this state an ancillary
receiver is to be appointed in delinquency proceedings for an
insurer not domiciled in this state, the court shall appoint the
commissioner as ancillary receiver. The commissioner shall
file a petition requesting the appointment (a) if he finds that
there are sufficient assets of such insurer located in this state
to justify the appointment of an ancillary receiver, or (b) if ten
or more persons resident in this state having claims against
such insurer file a petition with the commissioner requesting
the appointment of such ancillary receiver.
(2) The domiciliary receiver for the purpose of liquidating an insurer domiciled in a reciprocal state, shall be vested
by operation of law with the title to all of the property, contracts, and rights of action, and all of the books and records of
the insurer located in this state, and he shall have the immediate right to recover balances due from local agents and to
obtain possession of any books and records of the insurer
found in this state. He shall also be entitled to recover the
other assets of the insurer located in this state except that
upon the appointment of an ancillary receiver in this state, the
ancillary receiver shall during the ancillary receivership proceedings have the sole right to recover such other assets. The
ancillary receiver shall, as soon as practicable, liquidate from
their respective securities those special deposit claims and
secured claims which are proved and allowed in the ancillary
proceedings in this state, and shall pay the necessary
expenses of the proceedings. All remaining assets he shall
promptly transfer to the domiciliary receiver. Subject to the
foregoing provisions the ancillary receiver and his deputies
shall have the same powers and be subject to the same duties
with respect to the administration of such assets, as a receiver
of an insurer domiciled in this state.
(3) The domiciliary receiver of an insurer domiciled in a
reciprocal state may sue in this state to recover any assets of
such insurer to which he may be entitled under the laws of
this state. [1947 c 79 § .31.13; Rem. Supp. 1947 § 45.31.13.
Formerly RCW 48.31.130]
receivers, if any, in their respective states, or with the domiciliary receiver. All claims must be filed on or before the last
date fixed for the filing of claims in the domiciliary delinquency proceedings.
(2) Controverted claims belonging to claimants residing
in reciprocal states may either (a) be proved in this state as
provided by law, or (b) if ancillary proceedings have been
commenced in reciprocal states, be proved in those proceedings. In the event a claimant elects to prove a claim in ancillary proceedings, if notice of the claim and opportunity to
appear and be heard is afforded the domiciliary receiver of
this state as provided in RCW 48.99.050 with respect to
ancillary proceedings in this state, the final allowance of a
claim by the courts in the ancillary state must be accepted in
this state as conclusive as to its amount, and must also be
accepted as conclusive as to its priority, if any, against special
deposits or other security located within the ancillary state.
[2003 c 248 § 25; 1947 c 79 § .31.14; Rem. Supp. 1947 §
45.31.14. Formerly RCW 48.31.140.]
48.99.050
48.99.050 Claims of residents against foreign insurer.
(1) In a delinquency proceeding in a reciprocal state against
an insurer domiciled in that state, claimants against such
insurer, who reside within this state may file claims either
with the ancillary receiver, if any, appointed in this state, or
with the domiciliary receiver. All such claims must be filed
on or before the last date fixed for the filing of claims in the
domiciliary delinquency proceeding.
(2) Controverted claims belonging to claimants residing
in this state may either (a) be proved in the domiciliary state
as provided by the law of that state, or (b), if ancillary proceedings have been commenced in this state, be proved in
those proceedings. In the event that any such claimant elects
to prove his claim in this state, he shall file his claim with the
ancillary receiver in the manner provided by the law of this
state for the proving of claims against insurers domiciled in
this state, and he shall give notice in writing to the receiver in
the domiciliary state, either by registered mail or by personal
service at least forty days prior to the date set for hearing. The
notice shall contain a concise statement of the amount of the
claim, the facts on which the claim is based, and the priorities
asserted, if any. If the domiciliary receiver, within thirty days
after the giving of such notice, shall give notice in writing to
the ancillary receiver and to the claimant, either by registered
mail or by personal service, of his intention to contest such
claim, he shall be entitled to appear or to be represented in
any proceeding in this state involving the adjudication of the
claim. The final allowance of the claim by the courts of this
state shall be accepted as conclusive as to its amount, and
shall also be accepted as conclusive as to its priority, if any,
against special deposits or other security located within this
state. [1947 c 79 § .31.15; Rem. Supp. 1947 § 45.31.15. Formerly RCW 48.31.150.]
48.99.060
48.99.040
48.99.040 Claims of nonresidents against domestic
insurer. (1) In a delinquency proceeding begun in this state
against an insurer domiciled in this state, claimants residing
in reciprocal states may file claims either with the ancillary
[Title 48 RCW—page 382]
48.99.060 Priority of certain claims. (1) In a delinquency proceeding against an insurer domiciled in this state,
claims owing to residents of ancillary states shall be preferred
claims if like claims are preferred under the laws of this state.
All such claims whether owing to residents or nonresidents
(2004 Ed.)
Viatical Settlements
shall be given equal priority of payment from general assets
regardless of where such assets are located.
(2) In a delinquency proceeding against an insurer domiciled in a reciprocal state, claims owing to residents of this
state shall be preferred if like claims are preferred by the laws
of that state.
(3) The owners of special deposit claims against an
insurer for which a receiver is appointed in this or any other
state shall be given priority against their several special
deposits in accordance with the provisions of the statutes
governing the creation and maintenance of such deposits. If
there is a deficiency in any such deposit so that the claims
secured thereby are not fully discharged therefrom, the claimants may share in the general assets, but such sharing shall be
deferred until general creditors, and also claimants against
other special deposits who have received smaller percentages
from their respective special deposits, have been paid percentages of their claims equal to the percentage paid from the
special deposit.
(4) The owner of a secured claim against an insurer for
which a receiver has been appointed in this or any other state
may surrender his security and file his claim as a general
creditor, or the claim may be discharged by resort to the security, in which case the deficiency, if any, shall be treated as a
claim against the general assets of the insurer on the same
basis as claims of unsecured creditors. If the amount of the
deficiency has been adjudicated in ancillary proceedings as
provided in this chapter, or if it has been adjudicated by a
court of competent jurisdiction in proceedings in which the
domiciliary receiver has had notice and opportunity to be
heard, such amount shall be conclusive; otherwise the
amount shall be determined in the delinquency proceeding in
the domiciliary state. [1993 c 462 § 79; 1947 c 79 § .31.16;
Rem. Supp. 1947 § 45.31.16. Formerly RCW 48.31.160.]
48.99.070
48.99.070 Attachment, garnishment, execution
stayed. During the pendency of delinquency proceedings in
this or any reciprocal state no action or proceeding in the
nature of an attachment, garnishment, or execution shall be
commenced or maintained in the courts of this state against
the delinquent insurer or its assets. Any lien obtained by any
such action or proceeding within four months prior to the
commencement of any such delinquency proceeding or at
any time thereafter shall be void as against any rights arising
in such delinquency proceeding. [1947 c 79 § .31.17; Rem.
Supp. 1947 § 45.31.17. Formerly RCW 48.31.170.]
48.99.080
48.99.080 Severability—Uniformity of interpretation. (1) If any provision of this chapter or the application
thereof to any person or circumstances is held invalid, such
invalidity shall not affect other provisions or applications of
the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this
chapter are declared to be severable.
(2) This Uniform Insurers Liquidation Act shall be so
interpreted and construed as to effectuate its general purpose
to make uniform the law of those states that enact it. To the
extent that its provisions, when applicable, conflict with provisions of chapter 48.31 RCW, the provisions of this chapter
(2004 Ed.)
48.102.005
shall control. [1993 c 462 § 80; 1947 c 79 § .31.18; Rem.
Supp. 1947 § 45.31.18. Formerly RCW 48.31.180.]
48.99.900
462.
48.99.900 Severability—Implementation—1993 c
See RCW 48.31B.901 and 48.31B.902.
Chapter 48.102
Chapter 48.102 RCW
VIATICAL SETTLEMENTS
Sections
48.102.005
48.102.010
48.102.015
48.102.020
48.102.025
48.102.030
48.102.035
48.102.040
48.102.045
48.102.050
48.102.055
48.102.900
48.102.901
Definitions.
License required for providers and brokers—Application—
Requirements—Fee—Rules.
Commissioner may suspend, revoke, or refuse to issue or
renew license—Information requirements—Hearing—Fine.
Commissioner approval required for contract form, rate, fee,
commission, or other compensation charged—Finding necessary for disapproval.
Licensee must file annual statement.
Examination of business and affairs of applicant or licensee—
Production of information—Expenses—Confidentiality of
information—Recordkeeping requirements.
Requirement to provide information to the viator.
Requirement for provider to obtain information—Medical
information is confidential—Rescission rights—Time is of
the essence.
Must be licensed—Transfer to unlicensed entity is void—
Rights in policy restored to viator—Exceptions allowed by
rule.
Rules as necessary to implement chapter.
Consumer protection act applies—Civil action—Damages—
Costs—Attorneys' fees.
Short title—1995 c 161.
Application of chapter 21.20 RCW—1995 c 161.
48.102.005
48.102.005 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Person" means the same as defined in RCW
48.01.070.
(2) "Viatical settlement broker" means an individual,
partnership, corporation, or other entity who or which for
another person, and for a fee, commission, or any other valuable consideration, does any of the following things:
(a) Offers or advertises the availability of viatical settlements;
(b) Introduces viators to viatical settlement providers;
(c) Offers or attempts to negotiate viatical settlements
between a viator and one or more viatical settlement providers. However, "viatical settlement broker" does not mean an
attorney, accountant, or financial planner retained to represent the viator, whose fee or other compensation is not paid
by the viatical settlement provider.
(3) "Viatical settlement contract" means a written agreement entered into between a viatical settlement provider and
a viator.
(4) "Viatical settlement provider" means any person that
enters into an agreement with a viator under the terms of
which the viatical settlement provider pays compensation or
anything of value, in return for the assignment, transfer, sale,
devise, or bequest of the death benefit or ownership of the
insurance policy or certificate of insurance to the viatical settlement provider. "Viatical settlement provider" does not
mean the following:
(a) Any bank, savings bank, savings and loan association, credit union, or other licensed lending institution that
[Title 48 RCW—page 383]
48.102.010
Title 48 RCW: Insurance
takes an assignment of a life insurance policy as collateral for
a loan; or
(b) The issuer of a life insurance policy providing accelerated benefits, as those are defined in WAC 284-23-620(1).
(5) "Viator" means the owner of a life insurance policy,
or the holder of a certificate of insurance, insuring the life of
a person with a catastrophic or life-threatening illness or condition, who enters into an agreement under which the viatical
settlement provider will pay compensation or anything of
value, which compensation or value is less than the expected
death benefit of the insurance policy or certificate of insurance, in return for the assignment, transfer, sale, devise, or
bequest of the death benefit or ownership of the insurance
policy or certificate of insurance to the viatical settlement
provider. [1995 c 161 § 1.]
(b) Is competent and trustworthy and intends to act in
good faith in the business covered by the license for which
the applicant has applied;
(c) Has a good business reputation and has had experience, training, or education so as to be qualified in the business covered by the license for which the applicant has
applied; and
(d) If a corporation, is incorporated under the laws of this
state, or is a foreign corporation authorized to transact business in this state.
(6) The commissioner shall not issue or renew any
license unless the applicant has filed with the commissioner a
written irrevocable consent that any action against the applicant may be commenced by the service of process upon the
commissioner. [1995 c 161 § 2.]
48.102.010 License required for providers and brokers—Application—Requirements—Fee—Rules. (1) On
or after July 23, 1995, an individual, partnership, corporation,
or other entity may not act as a viatical settlement provider or
enter into or solicit a viatical settlement contract in this state,
or act as a viatical settlement broker, without first obtaining a
license from the commissioner.
(2) Application for a license for a viatical settlement provider or viatical settlement broker shall be made on a form
prescribed by the commissioner, and the application shall be
accompanied by a fee as determined by the commissioner by
rule.
(3) Licenses for viatical settlement providers or viatical
settlement brokers may be renewed from year to year on the
anniversary date or at another interval established by rule,
upon payment of the renewal fee and submission of forms of
information as determined by rule. Failure to pay the fee
within the time prescribed shall result in automatic revocation of the license.
(4) The applicant shall provide the information the commissioner requires on forms prescribed by the commissioner.
(a) The applicant shall disclose the identity of all stockholders, partners, and corporate officers; its parent entities
and affiliates, and their stockholders, partners, and officers;
to the extent prescribed by the commissioner.
(b) The commissioner may refuse to issue or renew a
license if he or she is not satisfied that any officer, partner,
stockholder, or employee thereof, who may materially influence the conduct of the applicant or licensee, meets the standards required by the public interest.
(c) A license issued to a partnership, corporation, or
other entity authorizes all its partners, officers, and employees to act as viatical settlement providers under the license, if
they were identified in the application or application for
renewal.
(d) Any person who willfully misrepresents any fact
required to be disclosed in an application for a license to act
as either a viatical settlement provider or a viatical settlement
broker shall be liable to penalties as provided by applicable
law.
(5) Upon the filing of an application and the payment of
the fee required by rule, the commissioner shall issue or
renew a license if the commissioner finds that the applicant:
(a) Has provided a detailed and adequate plan of operation;
48.102.015 Commissioner may suspend, revoke, or
refuse to issue or renew license—Information requirements—Hearing—Fine. (1) The commissioner may suspend, revoke, or refuse to issue or renew the license of any
viatical settlement broker or viatical settlement provider if
the commissioner finds that:
(a) There was any misrepresentation, intentional or otherwise, in the application for the license or for renewal of a
license;
(b) The applicant for, or holder of any such license, is or
has been subject to a final administrative action for being, or
is otherwise shown to be, untrustworthy or incompetent to act
as either a viatical settlement broker or a viatical settlement
provider;
(c) The applicant for, or holder of any such license, demonstrates a pattern of unreasonable payments to viators;
(d) The applicant for, or holder of any such license, has
been convicted of a felony or of any criminal misdemeanor of
which criminal fraud is an element; or
(e) The applicant for, or holder of any such license, has
violated any provision of this title.
(2) The commissioner may require an applicant or the
holder of any license issued under this chapter to supply current information on the identity or capacity of stockholders,
partners, officers, and employees, including but not limited to
the following: Fingerprints, personal history, business experience, business records, and any other information which the
commissioner may require. If required, the applicant or licensee shall furnish his or her fingerprints for submission to
the Washington state patrol, the federal bureau of investigation, and any governmental agency or entity authorized to
receive this information for a state and national criminal history background check.
(3) Before the commissioner suspends or revokes any
license issued under this chapter, the commissioner shall conduct a hearing, if the applicant or licensee requests this in
writing. The hearing shall be in accordance with chapters
34.05 and 48.04 RCW.
(4) After a hearing or with the consent of any party
licensed under this chapter and in addition to or in lieu of the
suspension, revocation, or refusal to renew any license under
this chapter, the commissioner may levy a fine upon the viatical settlement provider in an amount not more than ten thousand dollars, for each violation of this chapter. The order
levying the fine shall specify the period within which the fine
48.102.010
[Title 48 RCW—page 384]
48.102.015
(2004 Ed.)
Viatical Settlements
shall be fully paid, and that period shall not be less than fifteen nor more than thirty days from the date of the order.
Upon failure to pay the fine when due, the commissioner may
revoke the license if not already revoked, and the fine may be
recovered in a civil action brought in behalf of the commissioner by the attorney general. Any fine so collected shall be
deposited into the general fund.
(5) If in the process of verifying fingerprints under subsection (2) of this section, business records, or other information the commissioner's office incurs fees or charges from
another governmental agency or from a business firm, the
amount of the fees or charges shall be paid to the commissioner's office by the applicant or licensee. [2002 c 227 § 5;
1995 c 161 § 3.]
Effective date—2002 c 227: See note following RCW 48.06.040.
48.102.020
48.102.020 Commissioner approval required for contract form, rate, fee, commission, or other compensation
charged—Finding necessary for disapproval. After a date
established by rule, no viatical settlement provider or viatical
settlement broker may use any viatical settlement contract or
brokerage contract in this state unless the contract form has
been filed with and approved by the commissioner. Any such
contract filing is approved if it has not been disapproved
within sixty days after it is filed with the commissioner. The
rate, fee, commission, or other compensation charged must
also be filed with the commissioner at the same time the contract form is filed, and any changes must be filed and
approved before use. The commissioner shall disapprove any
such viatical settlement contract or brokerage contract, or
revoke previous approval, or rates, if the commissioner
makes either of the following alternative findings:
(1) The benefits offered to the viator are unreasonable in
relation to the rate, fee, or other compensation that is charged;
or
(2) Any other provisions or terms of the contract are
unreasonable, contrary to the public interest, misleading, or
unfair to the viator. [1995 c 161 § 4.]
48.102.025
48.102.025 Licensee must file annual statement.
Each holder of any license issued under this chapter shall file
with the commissioner, on or before March 1 of each year, an
annual statement containing such information as the commissioner may by rule require. [1995 c 161 § 5.]
48.102.030
48.102.030 Examination of business and affairs of
applicant or licensee—Production of information—
Expenses—Confidentiality of information—Recordkeeping requirements. (1) The commissioner may examine the
business and affairs of any applicant for or holder of any
license issued under this chapter. The commissioner may
require any applicant for or holder of any such license to produce any records, books, files, and any other writings or
information reasonably necessary to determine whether or
not the applicant for or holder of any such license is acting, or
has acted, in violation of any laws, or otherwise contrary to
the interests of the public, or has acted in a manner demonstrating incompetence or untrustworthiness to hold any such
license. The expenses incurred in conducting any examina(2004 Ed.)
48.102.040
tion shall be paid by the applicant for or holder of any such
license.
(2) The names and individual identification data of all
viators are private and confidential information and shall not
be disclosed by the commissioner, except under court order.
(3) Records of all transactions of viatical settlement contracts and brokerage contracts, and an advertising file containing the text of all advertising used and the dates and
media in which it was used, shall be maintained by each
holder of any license issued under this chapter. [1995 c 161
§ 6.]
48.102.035
48.102.035 Requirement to provide information to
the viator. A viatical settlement provider shall disclose, in
writing, the following information to the viator no later than
the date when the viatical settlement contract is signed by all
parties:
(1) Possible alternatives to viatical settlement contracts
for persons with catastrophic or life-threatening conditions.
These shall include, but not be limited to, any available accelerated benefits on the life insurance policy;
(2) The fact that some or all of the proceeds of the viatical settlement may be taxable, and that advice and assistance
should be sought from an attorney or tax professional;
(3) The fact that the proceeds of the viatical settlement
could be subject to the claims of creditors, and that advice
and assistance should be sought from an attorney;
(4) The fact that receiving the proceeds of the viatical
settlement might adversely affect the viator's eligibility for
medicaid, or other public benefits or entitlements, and that
advice and assistance should be sought from an attorney;
(5) The right of the viator to rescind the contract on or
before the later of (a) thirty days after the date when it is executed by all parties or (b) fifteen days after the receipt of the
proceeds of the viatical settlement contract; and
(6) The date by which the proceeds will be available to
the viator, and also the source of the proceeds. [1995 c 161 §
7.]
48.102.040
48.102.040 Requirement for provider to obtain information—Medical information is confidential—Rescission
rights—Time is of the essence. (1) A viatical settlement
provider entering into a viatical settlement contract with a
viator shall first obtain the following:
(a) A written and signed statement from an attending
medical doctor that in his or her professional opinion, the viator is of sound mind and under no undue influence;
(b) A document witnessed by a person not employed by
or affiliated with the viatical settlement provider, in which
the viator consents to the viatical settlement contract,
acknowledges the catastrophic or life-threatening illness or
condition, and represents that he or she:
(i) Has a complete understanding of the viatical settlement contract;
(ii) Has a full and complete understanding of the life
insurance policy;
(iii) Releases his or her medical records for the limited
and express purpose of making the viatical settlement agreement possible;
[Title 48 RCW—page 385]
48.102.045
Title 48 RCW: Insurance
(iv) Has either obtained advice or assistance from an
attorney or tax professional, or has had the opportunity to do
so; and
(v) Has entered into the viatical settlement contract
freely and voluntarily; and
(c) In those cases where the viator is not the insured person, a written consent to the viatical settlement agreement
from the insured person or his or her legal representative.
(2) All medical information solicited or obtained by any
holder of a license issued under this chapter is subject to all
applicable laws governing confidentiality of medical information.
(3) All viatical settlement contracts entered into in this
state shall contain a provision no less favorable than that in
the event the viator exercises his or her right to rescind the
viatical settlement contract, any proceeds previously paid
shall be refunded no later than the earliest of (a) thirty days of
the date of rescission or (b) fifteen days of payment of the
proceeds.
(4) All viatical settlement contracts entered into in this
state shall contain a rescission clause no less favorable than
that the viator has the unconditional right to rescind the contract on or before the later of (a) thirty days of the date it is
signed by all parties or (b) fifteen days of the receipt of the
proceeds of the viatical settlement agreement; subject to
refund of those proceeds as set forth in subsection (3) of this
section.
(5) Time is of the essence in delivery of the proceeds of
any viatical settlement contract by the date disclosed to the
viator.
(6) No viatical settlement contract entered into in this
state may contain any restrictions upon the use of the proceeds of the contract.
(7) Any viatical settlement contract entered into in this
state shall establish the terms under which the viatical settlement provider shall pay compensation or anything of value,
which compensation is less than the expected death benefit of
the insurance policy or certificate of insurance, in return for
the assignment, transfer, sale, devise, or bequest of the death
benefit or ownership of the insurance policy or certificate to
the viatical settlement provider. [1995 c 161 § 8.]
48.102.050 Rules as necessary to implement chapter.
The commissioner may adopt rules as necessary to implement this chapter. This includes, but is not limited to, the
adoption of rules regarding minimum capital requirements
for viatical settlement providers, training and examination
requirements for viatical settlement brokers, requiring a prospective viator to contact his or her life insurer regarding possible accelerated benefits before entering into a viatical settlement agreement, licensing and examination requirements
for applicants for a license as a viatical settlement broker,
when benefits are or are not reasonable in relation to the rate
fee, or other compensation, and bond requirements for either
or both viatical settlement providers or viatical settlement
brokers. [1995 c 161 § 10.]
48.102.050
48.102.055 Consumer protection act applies—Civil
action—Damages—Costs—Attorneys' fees. (1) The legislature finds that the subject of viatical settlements is of vital
importance to the public interest for the purpose of applying
the consumer protection act, chapter 19.86 RCW. Violations
of this chapter are not reasonable in relation to the development and preservation of business. A violation of this chapter
is an unfair or deceptive act in trade or commerce. It is also an
unfair method of competition for the purpose of applying the
consumer protection act, chapter 19.86 RCW.
(2) Any person who is injured by a violation of this chapter may bring a civil action against a viatical settlement provider in superior court to recover his or her actual damages.
The court may increase the award of damages to an amount
not more than three times the actual damages sustained, and
in addition the court may award costs and attorneys' fees to
the injured person. [1995 c 161 § 11.]
48.102.055
48.102.900 Short title—1995 c 161. This act may be
known and cited as the viatical settlements act. [1995 c 161
§ 12.]
48.102.900
48.102.901 Application of chapter 21.20 RCW—1995
c 161. The provisions of this chapter do not affect the application of chapter 21.20 RCW. [1995 c 161 § 13.]
48.102.901
Chapter 48.104 RCW
HOLOCAUST VICTIMS INSURANCE RELIEF ACT
Chapter 48.104
48.102.045
48.102.045 Must be licensed—Transfer to unlicensed
entity is void—Rights in policy restored to viator—
Exceptions allowed by rule. (1) A viatical settlement provider shall not directly or indirectly assign, transfer, sell,
resell, or transfer by gift or bequest, or otherwise convey any
insurance policy that is or has been the subject of a viatical
settlement agreement, to any person, custodian, investor,
investor group, or other entity that does not hold a Washington license as a viatical settlement provider, issued by the
commissioner.
(2) Any attempted transfer to any person, custodian,
investor, investor group, or other entity not holding such a
license is void, and all rights in the insurance policy are
restored to the viator as of the date of the purported transfer,
except that the viator is not required to return the proceeds of
the original viatical settlement agreement to the viatical settlement provider. The commissioner may allow exceptions to
this subsection, by rule. [1995 c 161 § 9.]
[Title 48 RCW—page 386]
Sections
48.104.010
48.104.020
48.104.030
48.104.040
48.104.050
48.104.060
48.104.070
48.104.080
48.104.090
48.104.100
48.104.110
48.104.120
48.104.130
48.104.900
48.104.901
48.104.902
48.104.903
Historical context—Policy declarations—Intent.
Findings.
Definitions.
Holocaust survivor assistance office.
Holocaust insurance company registry—Authority—Availability of information.
Holocaust insurance company registry—Operations—Penalties—Funding.
Penalties.
Suspension of certificate of authority for failure to comply
with chapter.
Cooperation with international commission—Application of
chapter.
Private rights of action preserved—Venue.
Extension of statute of limitations.
Adoption of rules.
Annual report to legislature.
Short title—1999 c 8.
Captions not law—1999 c 8.
Severability—1999 c 8.
Expiration date—1999 c 8.
(2004 Ed.)
Holocaust Victims Insurance Relief Act
48.104.010
48.104.010 Historical context—Policy declarations—
Intent. (Expires December 31, 2010.) (1) The legislature
recognizes the existence of allegations that certain insurers
doing business in the state of Washington, either directly or
through related companies and affiliates, have failed to honor
insurance policies issued during the World War II era.
Although such policies were issued outside of the state of
Washington, Washington has a clear obligation to seek justice for its citizens and residents.
(2) The legislature recognizes that allegations regarding
a failure to pay legitimate insurance claims threaten the integrity of the insurance market. The basic commodity that insurers sell is trust. Policyholders pay substantial sums to insurers
trusting that at a future date, perhaps decades later, the insurer
will protect them and their loved ones. An insurer that violates this trust should not be authorized to do business in this
state or own or control insurers doing business in this state,
lest the integrity of this state's insurance market be compromised.
(3) The legislature recognizes that hundreds of Holocaust survivors and heirs of Holocaust victims are citizens or
residents of the state of Washington. The legislature is concerned by allegations that citizens or residents of the state of
Washington may have been deprived of their contractual
entitlement to benefits under insurance policies issued by
insurance companies operating in Europe prior to and during
World War II. The state of Washington has a public policy
interest in assuring that all of its citizens and residents,
including Holocaust survivors, their families, and the heirs of
Holocaust victims, who are entitled to proceeds of insurance
policies are treated reasonably and fairly and that any contractual obligations are honored.
(4) The legislature recognizes that the business of insurance is one affected by the public interest, requiring that all
persons conducting it be actuated by good faith, abstain from
deception, and practice honesty and equity in all insurance
matters. The insurance commissioner is currently authorized
to refuse, suspend, or revoke the certificate of authority of
insurers that are affiliated directly or indirectly through ownership, control, reinsurance or other insurance or business
relations with any person, persons, or entities whose business
operations are or have been marked, to the detriment of policyholders or the public, or by bad faith. The insurance commissioner is also currently authorized to provide assistance to
members of the public in resolving complaints involving
insurers. It is the intent of the legislature to provide additional
resources to the insurance commissioner to implement this
authority, to authorize the insurance commissioner to cooperate with other state regulators with regard to such policies,
and to authorize the insurance commissioner to cooperate
with and act through the international commission concerning World War II era policies established under the efforts of
the national association of insurance commissioners. [1999 c
8 § 1.]
48.104.020
48.104.020 Findings. (Expires December 31, 2010.)
The legislature finds the following:
(1) In addition to the many atrocities that befell the victims of the Nazi regime, in many cases insurance policy proceeds were not paid to the victims and their families.
(2004 Ed.)
48.104.030
(2) In many instances, insurance company records are
the only proof of insurance policies held. In some cases, recollection of those policies' very existence may have perished
along with the Holocaust victims.
(3) Several hundred Holocaust survivors and their families, or the heirs of Holocaust victims live in Washington
today.
(4) Insurance companies doing business in the state of
Washington have a responsibility to ensure that any involvement they or their related companies had with insurance policies of Holocaust victims are disclosed to the state to ensure
the rapid payment to victims and their survivors of any proceeds to which they may be entitled.
(5) There has been established an international commission to investigate and facilitate the payment of insurance
policies to victims of the Holocaust and their survivors. It is
in the best interest of the people of the state of Washington to
authorize the insurance commissioner to cooperate with and
coordinate his or her activities with the international commission.
(6) Other states are establishing Holocaust survivor
assistance offices and registries of insurance policies and
Holocaust victims in order to identify policyholders and their
survivors to whom policy proceeds may be payable. It is in
the best interest of the people of the state of Washington to
authorize the insurance commissioner to cooperate with and
coordinate his or her activities with those other states.
(7) In addition to unpaid insurance policies, Holocaust
victims lost unknown billions of dollars of assets seized by
Nazi Germany and its allies and collaborators in Germany
and Nazi-occupied Europe between 1933 and 1945. [1999 c
8 § 2.]
48.104.030
48.104.030 Definitions. (Expires December 31, 2010.)
The definitions in this section apply throughout this chapter
unless the context clearly requires otherwise.
(1) "Holocaust survivor" or "Holocaust victim" means
any person who was persecuted, imprisoned or liable to
imprisonment, or had property taken or confiscated during
the period of 1933 to 1945, inclusive, by Nazi Germany, its
allies, or sympathizers based on that person's race, religion,
ethnicity, physical or mental disability, sexual orientation, or
similar class or group-based animus.
(2) "Related company" means any parent, subsidiary,
successor in interest, managing general agent, or other person
or company affiliated directly or indirectly through ownership, control, common ownership or control, or other business or insurance relationship with another company or
insurer.
(3) "Insurer" means an entity holding a certificate of
authority or license to conduct the business of insurance in
this state, or whose contacts with this state satisfy the constitutional requirements for jurisdiction, that sold life, property,
liability, health, annuities, dowry, educational, casualty, or
any other insurance covering persons or property to persons
in Europe at any time before 1945, whether directly or
through or as [a] result of sales by a related company, or is
itself a related company to any person, entity, or insurance
company that sold such policies, whether the sale of the
insurance occurred before or after becoming related.
[Title 48 RCW—page 387]
48.104.040
Title 48 RCW: Insurance
(4) "Proceeds" means the face or other payout value of
policies and annuities plus reasonable interest to date of payments without diminution for wartime or immediate postwar
currency devaluation legally due under any insurance policy
issued by an insurer or any related company.
(5) "International commission" means the international
commission on Holocaust era insurance claims, referenced in
and established under a memorandum of understanding originally dated April 8, 1998, between and among the insurance
commissioner, various other state insurance regulators, various alien insurance companies, and world-wide Jewish
groups, which commission held its first meeting in New York
on October 21, 1998, and any successor.
(6) "Other assets" means the proceeds of bank accounts,
gold, art, houses, businesses, other real estate properties or
land, or the contents of homes, businesses, or other real estate
properties of Holocaust survivors or victims. [1999 c 8 § 3.]
48.104.040
48.104.040 Holocaust survivor assistance office.
(Expires December 31, 2010.) (1) To assist Holocaust victims, their heirs, or their beneficiaries to recover proceeds
from insurance policies that were improperly denied or processed, or from other assets, or both, the insurance commissioner may establish a Holocaust survivor assistance office.
(2) The insurance commissioner may appoint or deputize
personnel to be engaged or employed by the Holocaust survivor assistance office and utilize insurance department personnel to resolve or settle claims of Holocaust victims. The
insurance commissioner may also engage outside auditors or
other qualified personnel to assist in the investigation of
claims made by Holocaust victims, their heirs, or their beneficiaries.
(3) The insurance commissioner may cooperate and
exchange information with other states establishing similar
Holocaust survivor assistance offices and with the international commission, and may enter into agreements whereby a
single processing office may be established on behalf of, and
to provide services to the residents of, several states. [1999 c
8 § 4.]
48.104.050
48.104.050 Holocaust insurance company registry—
Authority—Availability of information. (Expires December 31, 2010.) (1) To facilitate the work of the Holocaust survivor assistance office, the insurance commissioner may
establish and maintain a central registry containing records
and information relating to insurance policies, as described in
RCW 48.104.060, of victims, living and deceased, of the
Holocaust. The registry shall be known as the Holocaust
insurance company registry. The insurance commissioner
shall establish standards and procedures to make the information in the registry available to the public to the extent necessary and appropriate to determine the existence of insurance
policies and to identify beneficiaries, successors in interest,
or other persons entitled to the proceeds of such policies, and
to enable such persons to claim proceeds to which they may
be entitled, while protecting the privacy of policyholders,
their survivors, and their family members. All information
received by the Holocaust insurance company registry or
Holocaust survivor assistance office from any insurer, related
company, or foreign government or regulator shall be consid[Title 48 RCW—page 388]
ered and deemed to be matters and information relating to an
examination and part of an examination report that the insurance commissioner may treat as confidential and withhold
from public inspection under RCW 48.03.040(6)(c) and
48.03.050. To the extent necessary and appropriate to secure
access to documents and information located in or subject to
the jurisdiction of other states and countries, the insurance
commissioner is authorized to enter into agreements or to
provide assurances that any or all documents and information
received from an entity regulated by or subject to the laws of
such other state or country, or received from any agency of
the government of any such state or country, will be treated as
confidential by the insurance commissioner and will not be
disclosed to any person except with the approval of the
appropriate authority of such state or country or except as
permitted or authorized by the laws of such state or country,
and any such agreement shall be binding and enforceable notwithstanding chapter 42.17 RCW. To the extent necessary
and appropriate to secure access to documents and information from or in the possession of the international commission as to which the international commission has given
assurances of confidentiality or privacy, the insurance commissioner is authorized to enter into agreements or to provide
assurances that any or all such documents and information
will be treated as confidential by the insurance commissioner
and will not be disclosed to any person except with the
approval of the international commission or as permitted by
any agreement or assurances given by the international commission, and any such agreement shall be binding and
enforceable notwithstanding chapter 42.17 RCW.
(2) The insurance commissioner may cooperate and
exchange information with other states establishing similar
registries and with the international commission, and may
enter into agreements whereby a single registry may be established on behalf of, and to provide services to the citizens and
residents of, several states. [1999 c 8 § 5.]
48.104.060
48.104.060 Holocaust insurance company registry—
Operations—Penalties—Funding. (Expires December 31,
2010.) (1) Any insurer that sold life, property, liability,
health, annuities, dowry, educational, or casualty insurance
policies, to persons in Europe, that were in effect any time
between 1933 and 1945, regardless of when the policy was
initially purchased or written, shall within ninety days following July 25, 1999, or such later date as the insurance commissioner may establish, file or cause to be filed the following information with the insurance commissioner to be
entered into the Holocaust insurance company registry:
(a) A list of such insurance policies;
(b) The insureds, beneficiaries, and face amounts of such
policies;
(c) A comparison of the names and other available identifying information of insureds and beneficiaries of such policies and the names and other identifying information of the
victims of the Holocaust. The names and other identifying
information of victims of the Holocaust shall be provided by
the office of the insurance commissioner and may be
obtained from the United States Holocaust museum and the
Yad Vashem repository in Israel, or other sources;
(d) For each such policy, whichever of the following that
may apply:
(2004 Ed.)
Holocaust Victims Insurance Relief Act
(i) That the proceeds of the policy have been paid to the
designated beneficiaries or their heirs where that person or
persons, after diligent search, could be located and identified;
(ii) That the proceeds of the policies where the beneficiaries or heirs could not, after diligent search, be located or
identified, have been distributed to Holocaust survivors or to
qualified charitable nonprofit organizations for the purpose
of assisting Holocaust survivors;
(iii) That a court of law has certified in a legal proceeding resolving the rights of unpaid policyholders, their heirs,
and beneficiaries, a plan for the distribution of the proceeds;
(iv) That the proceeds have not been distributed and the
amount of those proceeds.
(2) The destruction of any records or other materials pertaining to such policies shall be a class C felony according to
chapter 9A.20 RCW. Evidence of the destruction of such
material shall be admissible in both administrative and judicial proceedings as evidence in support of any claim being
made against the insurer involving the destroyed material.
(3) An insurer currently doing business in the state that
did not sell any insurance policies in Europe prior to 1945
except through or as a result of sales by a related company
shall not be subject to this section if a related company,
whether or not authorized and currently doing business in the
state, has made a filing with the insurance commissioner
under this section.
(4) The insurance commissioner may fund the costs of
operating both the Holocaust survivor assistance office and
the Holocaust claims registry by assessments upon those
insurers providing information to the Holocaust insurance
company registry. The insurance commissioner shall establish standards and procedures to fairly allocate the costs of
the Holocaust insurance company registry and Holocaust survivor assistance office among such insurers. The insurance
commissioner is expressly authorized to allocate such costs
based on the number of policies reported or, based on the
total monetary amount of the policies as determined by their
face amounts without regard to inflation, interest, or depreciation.
(5) The insurance commissioner is authorized to conduct
investigations and examinations of insurers for the purpose of
determining compliance with this chapter, verifying the accuracy and completeness of any and all information furnished
to the Holocaust insurance company registry and the Holocaust survivor assistance office, and developing and securing
such additional information as may be necessary or appropriate to determine those entitled to payment under any policy
and the proceeds to which such person may be entitled, if
any. Any such investigation shall be considered to be an
examination under chapter 48.03 RCW. The costs of any
such examination will be borne by the insurer investigated, or
the insurer to whom the related company is related, pursuant
to RCW 48.03.060(2). Examinations may be conducted in
this state, or in the state or country of residence of the insurer
or related company, or at such other place or country where
the records to be examined may be located.
(6) The insurance commissioner may permit the Holocaust insurance company registry or the Holocaust survivor
assistance office or both to accept information and to assist
claimants with regard to the location and recovery of property or assets taken or confiscated from Holocaust victims
(2004 Ed.)
48.104.070
other than insurance policies if the insurance commissioner
finds that doing so would not adversely affect the operations
of the registry or Holocaust survivor assistance office with
regard to insurance policies. However, all costs and expenses,
including that of personnel, attributable to such noninsurance
assets shall be separately accounted for and shall not be
assessed against insurers under subsections (4) and (5) of this
section and shall not be paid from the general funds of the
office of the insurance commissioner, but shall be paid solely
from contributions or donations received for that purpose.
(a) The insurance commissioner may accept contributions from any other person wishing to fund the operations of
the Holocaust survivor assistance office or the Holocaust
insurance company registry to facilitate the resolution of
claims involving Holocaust victims.
(b) The insurance commissioner is authorized to assist in
the creation of an entity to accept tax deductible contributions
to support activities conducted by the Holocaust survivor
assistance office and the Holocaust insurance company registry.
(c) The insurance commissioner, through the Holocaust
survivor assistance office, is authorized, with the consent of
the parties, to act as mediator of any dispute involving the
claim of a Holocaust victim or his or her heirs or beneficiaries
arising from an occurrence during the period between January 1, 1933, and December 31, 1945.
(7) The insurance commissioner is authorized to cooperate with and exchange information with other states with similar Holocaust insurance company registries or Holocaust
survivor assistance offices, with the national association of
insurance commissioners, with foreign countries and with the
international commission. The insurance commissioner is
authorized to enter into agreements to handle the processing
of claims and registry functions of other states, and to have
other states handle all or part of the registry and claims processing functions for this state, as the insurance commissioner may determine to be appropriate. The insurance commissioner is authorized to enter into agreements with other
states and the international commission to treat and consider
information submitted to them as submitted to this state for
[the] purpose of complying with this chapter. As part of any
such agreement, the insurance commissioner may agree to
reimburse any other state for expenses or costs incurred and
such reimbursement shall be recovered by the insurance commissioner as an expense of operating the Holocaust insurance
company registry and Holocaust survivor assistance office
under subsections (4) and (5) of this section, and to accept
reimbursement from any other state for services with regard
to residents of such other state.
(8) A finding by the insurance commissioner that a claim
subject to the provisions of this section should be paid shall
be regarded by any court as highly persuasive evidence that
such claim should be paid. [1999 c 8 § 6.]
48.104.070
48.104.070 Penalties. (Expires December 31, 2010.)
Any insurer that knowingly files information required by this
chapter that is false shall be liable for a civil penalty not to
exceed ten thousand dollars for each violation. [1999 c 8 §
7.]
[Title 48 RCW—page 389]
48.104.080
Title 48 RCW: Insurance
48.104.080
48.104.080 Suspension of certificate of authority for
failure to comply with chapter. (Expires December 31,
2010.) The insurance commissioner is authorized to suspend
the certificate of authority to conduct insurance business in
the state of Washington of any insurer that fails to comply
with the requirements of this chapter by or after one hundred
twenty days after July 25, 1999, until the time that the insurer
complies with this chapter. Such suspension shall not affect
or relieve the insurer from its obligations to service its existing insureds, and shall not permit the insurer to terminate its
existing insureds, except pursuant to the terms of the insurance contract, but shall prohibit the insurer from writing new
business in this state until the suspension is lifted by the
insurance commissioner. [1999 c 8 § 8.]
48.104.900 Short title—1999 c 8. (Expires December
31, 2010.) This chapter shall be known and cited as the Holocaust victim insurance relief act of 1999. [1999 c 8 § 14.]
48.104.900
48.104.901 Captions not law—1999 c 8. (Expires
December 31, 2010.) Captions used in this chapter are not
any part of the law. [1999 c 8 § 15.]
48.104.901
48.104.902 Severability—1999 c 8. (Expires December 31, 2010.) If any provision of this act or its application to
any person or circumstance is held invalid, the remainder of
the act or the application of the provision to other persons or
circumstances is not affected. [1999 c 8 § 17.]
48.104.902
48.104.903 Expiration date—1999 c 8. (Expires
December 31, 2010.) This chapter expires December 31,
2010. [1999 c 8 § 18.]
48.104.903
48.104.090
48.104.090 Cooperation with international commission—Application of chapter. (Expires December 31,
2010.) The insurance commissioner may suspend the application of this chapter to any insurer that is participating in the
international commission process in good faith and is working through the international commission to resolve all outstanding claims with offers of fair settlements in a reasonable
time frame. If, however, the international commission fails to
establish a mechanism to accomplish identification, adjudication, and payment of insurance policy claims of Holocaust
survivors or victims within a reasonable time, then all provisions of this chapter shall come into effect as to any such
insurer. For purposes of this section, a reasonable time shall
mean by January 1, 2000, or such later date as the insurance
commissioner may establish by rule. [1999 c 8 § 9.]
Chapter 48.110
Sections
48.110.010
48.110.015
48.110.020
48.110.030
48.110.040
48.110.050
48.110.060
48.110.070
48.110.080
48.104.100
48.104.100 Private rights of action preserved—
Venue. (Expires December 31, 2010.) Any Holocaust survivor, or heir or beneficiary of a Holocaust survivor or victim,
who resides in this state and has a claim against an insurer
arising out of an insurance policy or policies purchased or in
effect in Europe before 1945 from that insurer may bring a
legal action against that insurer to recover on that claim in the
superior court of the county in which any plaintiff resides,
which court shall be vested with jurisdiction over that action.
[1999 c 8 § 10.]
Chapter 48.110 RCW
SERVICE CONTRACTS
48.110.090
48.110.100
48.110.110
48.110.120
48.110.130
48.110.140
48.110.150
48.110.900
48.110.901
Finding—Declaration—Purpose.
Exempt from title—Application of chapter.
Definitions.
Registration required—Application—Required information—Grounds for refusal—Annual renewal.
Filing of annual report—Fee—Investigations—Confidentiality.
Obligations of service contract provider.
Reimbursement insurance policies insuring service contracts.
Service contracts—Form—Required contents.
Name of service contract provider—Use of legal name—
False or misleading statements—Restrictions on requirement to purchase service contract.
Recordkeeping of service contract provider—Requirements—Duration—Form.
Termination of reimbursement insurance policy.
Service contract provider—Agent of insurer which issued
reimbursement insurance policy.
Commissioner may conduct investigations.
Denial, suspension, or revocation of registration—Immediate
suspension without notice or hearing—Fine.
Application of consumer protection act.
Rules.
Date of application to service contracts.
Severability—1999 c 112.
48.110.010 Finding—Declaration—Purpose. The
legislature finds that increasing numbers of businesses are
selling service contracts for repair, replacement, and maintenance of appliances, computers, electronic equipment, and
other consumer products. There are risks that contract obligors will close or otherwise be unable to fulfill their contract
obligations that could result in unnecessary and preventable
losses to citizens of this state. The legislature declares that it
is necessary to establish standards that will safeguard the
public from possible losses arising from the cessation of business of service contract obligors or the mismanagement of
funds paid for service contracts. The purpose of this chapter
is to create a legal framework within which service contracts
may be sold in this state and set forth requirements for conducting a service contract business. [1999 c 112 § 1.]
48.110.010
48.104.110
48.104.110 Extension of statute of limitations.
(Expires December 31, 2010.) Any action brought by a
Holocaust survivor or the heir or beneficiary of a Holocaust
survivor or victim, seeking proceeds of the insurance policies
issued or in effect before 1945 shall not be dismissed for failure to comply with the applicable statute of limitations, provided the action is commenced on or before December 31,
2010. [1999 c 8 § 11.]
48.104.120
48.104.120 Adoption of rules. (Expires December 31,
2010.) The insurance commissioner may adopt rules to
implement this chapter. [1999 c 8 § 12.]
48.104.130
48.104.130 Annual report to legislature. (Expires
December 31, 2010.) The insurance commissioner shall
report to the legislature one year from July 25, 1999, and
annually thereafter on the implementation of this law and resolution of Holocaust claims. [1999 c 8 § 13.]
[Title 48 RCW—page 390]
48.110.015 Exempt from title—Application of chapter. (1) The following are exempt from this title:
(a) Warranties;
48.110.015
(2004 Ed.)
Service Contracts
(b) Maintenance agreements; and
(c) Service contracts:
(i) Paid for with separate and additional consideration;
(ii) Issued at the point of sale, or within sixty days of the
original purchase date of the property; and
(iii) On tangible property when the tangible property for
which the service contract is sold has a purchase price of fifty
dollars or less, exclusive of sales tax.
(2) This chapter does not apply to:
(a) Vehicle service contracts which are governed under
chapter 48.96 RCW;
(b) Vehicle mechanical breakdown insurance; and
(c) Service contracts on tangible personal property purchased by persons who are not consumers. [2000 c 208 § 1;
1999 c 112 § 2.]
48.110.020 Definitions. The definitions in this section
apply throughout this chapter.
(1) "Administrator" means the person who is responsible
for the administration of the service contracts or the service
contracts plan.
(2) "Commissioner" means the insurance commissioner
of this state.
(3) "Consumer" means an individual who buys any tangible personal property that is primarily for personal, family,
or household use.
(4) "Maintenance agreement" means a contract of limited duration that provides for scheduled maintenance only.
(5) "Person" means an individual, partnership, corporation, incorporated or unincorporated association, joint stock
company, reciprocal insurer, syndicate, or any similar entity
or combination of entities acting in concert.
(6) "Premium" means the consideration paid to an
insurer for a reimbursement insurance policy.
(7) "Provider fee" means the consideration paid by a
consumer for a service contract.
(8) "Reimbursement insurance policy" means a policy of
insurance that is issued to a service contract provider to provide reimbursement to the service contract provider or to pay
on behalf of the service contract provider all contractual obligations incurred by the service contract provider under the
terms of the insured service contracts issued or sold by the
service contract provider.
(9) "Service contract" means a contract or agreement for
a separately stated consideration for a specific duration to
perform the repair, replacement, or maintenance of property
or the indemnification for repair, replacement, or maintenance for operational or structural failure due to a defect in
materials or workmanship, or normal wear and tear. Service
contracts may provide for the repair, replacement, or maintenance of property for damage resulting from power surges
and accidental damage from handling, with or without additional provision for indemnity payments for incidental damages to other property directly caused by the failure of the
property which is the subject of the service contract, provided
the indemnity payment per incident does not exceed the purchase price of the property that is the subject of the service
contract.
(10) "Service contract holder" or "contract holder"
means a person who is the purchaser or holder of a service
contract.
48.110.020
(2004 Ed.)
48.110.030
(11) "Service contract provider" means a person who is
contractually obligated to the service contract holder under
the terms of the service contract.
(12) "Service contract seller" means the person who sells
the service contract to the consumer.
(13) "Warranty" means a warranty made solely by the
manufacturer, importer, or seller of property or services without consideration; that is not negotiated or separated from the
sale of the product and is incidental to the sale of the product;
and that guarantees indemnity for defective parts, mechanical
or electrical breakdown, labor, or other remedial measures,
such as repair or replacement of the property or repetition of
services. [2000 c 208 § 2; 1999 c 112 § 3.]
48.110.030 Registration required—Application—
Required information—Grounds for refusal—Annual
renewal. (1) A person shall not act as, or offer to act as, or
hold himself or herself out to be a service contract provider in
this state, nor may a service contract be sold to a consumer in
this state, unless the service contract provider has a valid registration as a service contract provider issued by the commissioner.
(2) Applicants to be a service contract provider shall
make an application to the commissioner upon a form to be
furnished by the commissioner. The application shall include
or be accompanied by the following information and documents:
(a) All basic organizational documents of the service
contract provider, including any articles of incorporation,
articles of association, partnership agreement, trade name
certificate, trust agreement, shareholder agreement, bylaws,
and other applicable documents, and all amendments to those
documents;
(b) The identities of the service contract provider's executive officer or officers directly responsible for the service
contract provider's service contract business, and, if more
than fifty percent of the service contract provider's gross revenue is derived from the sale of service contracts, the identities of the service contract provider's directors and stockholders having beneficial ownership of ten percent or more of any
class of securities;
(c) Audited annual financial statements or other financial
reports acceptable to the commissioner for the two most
recent years which prove that the applicant is solvent and any
information the commissioner may require in order to review
the current financial condition of the applicant. If the service
contract provider is relying on RCW 48.110.050(2) (a) or (c)
to assure the faithful performance of its obligations to service
contract holders, then the audited financial statements of the
service contract provider's parent company may be substituted for the audited financial statements of the service contract provider;
(d) An application fee of two hundred fifty dollars,
which shall be deposited into the insurance commissioner's
regulatory account under RCW 48.02.190; and
(e) Any other pertinent information required by the commissioner.
(3) The applicant shall appoint the commissioner as its
attorney to receive service of legal process in any action, suit,
or proceeding in any court. This appointment is irrevocable
and shall bind the service contract provider or any successor
48.110.030
[Title 48 RCW—page 391]
48.110.040
Title 48 RCW: Insurance
in interest, shall remain in effect as long as there is in force in
this state any contract or any obligation arising therefrom
related to residents of this state, and shall be processed in
accordance with RCW 48.05.210.
(4) The commissioner may refuse to issue a registration
if the commissioner determines that the service contract provider, or any individual responsible for the conduct of the
affairs of the service contract provider under subsection
(2)(b) of this section, is not competent, trustworthy, financially responsible, or has had a license as a service contract
provider or similar license denied or revoked for cause by any
state.
(5) A registration issued under this section is valid,
unless surrendered, suspended, or revoked by the commissioner, or not renewed for so long as the service contract provider continues in business in this state and remains in compliance with this chapter. A registration is subject to renewal
annually on the first day of July upon application of the service contract provider and payment of a fee of two hundred
dollars, which shall be deposited into the insurance commissioner's regulatory account under RCW 48.02.190. If not so
renewed, the registration expires on the June 30th next preceding.
(6) A service contract provider shall keep current the
information required to be disclosed in its registration under
this section by reporting all material changes or additions
within thirty days after the end of the month in which the
change or addition occurs. [1999 c 112 § 4.]
48.110.040
48.110.040 Filing of annual report—Fee—Investigations—Confidentiality. (1) Every registered service contract provider that is assuring its faithful performance of its
obligations to its service contract holders by complying with
RCW 48.110.050(2)(b) shall file an annual report for the preceding calendar year with the commissioner on or before
March 1st of each year, or within any extension of time the
commissioner for good cause may grant. The report shall be
in the form and contain those matters as the commissioner
prescribes and shall be verified by at least two officers of the
service contract provider.
(2) At the time of filing the report, the service contract
provider shall pay a filing fee of twenty dollars which shall be
deposited into the insurance commissioner's regulatory
account under RCW 48.02.190.
(3) As part of any investigation by the commissioner, the
commissioner may require a service contract provider to file
monthly financial reports whenever, in the commissioner's
discretion, there is a need to more closely monitor the financial activities of the service contract provider. Monthly financial statements shall be filed in the commissioner's office no
later than the twenty-fifth day of the month following the
month for which the financial report is being filed. These
monthly financial reports shall be the internal financial statements of the service contract provider. The monthly financial
reports that are filed with the commissioner constitute information that might be damaging to the service contract provider if made available to its competitors, and therefore shall
be kept confidential by the commissioner. This information
shall not be made public or be subject to subpoena, other than
by the commissioner and then only for the purpose of
[Title 48 RCW—page 392]
enforcement actions taken by the commissioner. [1999 c 112
§ 5.]
48.110.050 Obligations of service contract provider.
(1) Service contracts shall not be issued, sold, or offered for
sale in this state or sold to consumers in this state unless the
service contract provider has:
(a) Provided a receipt for, or other written evidence of,
the purchase of the service contract to the contract holder;
and
(b) Provided a copy of the service contract to the service
contract holder within a reasonable period of time from the
date of purchase.
(2) In order to assure the faithful performance of a service contract provider's obligations to its service contract
holders, every service contract provider shall be responsible
for complying with the requirements of one of the following:
(a) Insure all service contracts under a reimbursement
insurance policy issued by an insurer holding a certificate of
authority from the commissioner;
(b)(i) Maintain a funded reserve account for its obligations under its service contracts issued and outstanding in this
state. The reserves shall not be less than forty percent of the
gross consideration received, less claims paid, on the sale of
the service contract for all in-force contracts. The reserve
account shall be subject to examination and review by the
commissioner; and
(ii) Place in trust with the commissioner a financial security deposit, having a value of not less than five percent of the
gross consideration received, less claims paid, on the sale of
the service contract for all service contracts issued and in
force, but not less than twenty-five thousand dollars, consisting of one of the following:
(A) A surety bond issued by an insurer holding a certificate of authority from the commissioner;
(B) Securities of the type eligible for deposit by authorized insurers in this state;
(C) Cash;
(D) An evergreen letter of credit issued by a qualified
financial institution; or
(E) Another form of security prescribed by rule by the
commissioner; or
(c)(i) Maintain, or its parent company maintain, a net
worth or stockholder's equity of at least one hundred million
dollars; and
(ii) Upon request, provide the commissioner with a copy
of the service contract provider's or the service contract provider's parent company's most recent form 10-K or form 20F filed with the securities and exchange commission within
the last calendar year, or if the company does not file with the
securities and exchange commission, a copy of the service
contract provider's or the service contract provider's parent
company's audited financial statements, which shows a net
worth of the service contract provider or its parent company
of at least one hundred million dollars. If the service contract
provider's parent company's form 10-K, form 20-F, or
audited financial statements are filed with the commissioner
to meet the service contract provider's financial stability
requirement, then the parent company shall agree to guarantee the obligations of the service contract provider relating to
service contracts sold by the service contract provider in this
48.110.050
(2004 Ed.)
Service Contracts
state. A copy of the guarantee shall be filed with the commissioner. The guarantee shall be irrevocable as long as there is
in force in this state any contract or any obligation arising
from service contracts guaranteed, unless the parent company
has made arrangements approved by the commissioner to satisfy its obligations under the guarantee.
(3) Service contracts shall require the service contract
provider to permit the service contract holder to return the
service contract within twenty days of the date the service
contract was mailed to the service contract holder or within
ten days of delivery if the service contract is delivered to the
service contract holder at the time of sale, or within a longer
time period permitted under the service contract. Upon return
of the service contract to the service contract provider within
the applicable period, if no claim has been made under the
service contract prior to the return to the service contract provider, the service contract is void and the service contract
provider shall refund to the service contract holder, or credit
the account of the service contract holder with the full purchase price of the service contract. The right to void the service contract provided in this subsection is not transferable
and shall apply only to the original service contract purchaser. A ten percent penalty per month shall be added to a
refund of the purchase price that is not paid or credited within
thirty days after return of the service contract to the service
contract provider.
(4) Except for service contract providers, persons marketing, selling, or offering to sell service contracts for providers are exempt from the registration requirements of RCW
48.110.030.
(5) The marketing, sale, offering for sale, issuance, making, proposing to make, and administration of service contracts by service contract providers and related service contract sellers, administrators, and other persons complying
with this chapter are exempt from the other provisions of this
title, except chapter 48.04 RCW and as otherwise provided in
this chapter. [1999 c 112 § 6.]
48.110.060
48.110.060 Reimbursement insurance policies insuring service contracts. (1) Reimbursement insurance policies
insuring service contracts issued, sold, or offered for sale in
this state or sold to consumers in this state shall state that the
insurer that issued the reimbursement insurance policy shall
reimburse or pay on behalf of the service contract provider all
sums the service contract provider is legally obligated to pay,
including but not limited to the refund of the full purchase
price of the service contract to the service contract holder or
shall provide the service which the service contract provider
is legally obligated to perform according to the service contract provider's contractual obligations under the service contracts issued or sold by the service contract provider.
(2) The reimbursement insurance policy shall fully
insure the obligations of the service contract provider, rather
than partially insure, or insure only in the event of service
contract provider default.
(3) The reimbursement insurance policy shall state that
the service contract holder is entitled to apply directly to the
reimbursement insurance company. [1999 c 112 § 7.]
(2004 Ed.)
48.110.070
48.110.070
48.110.070 Service contracts—Form—Required
contents. (1) Service contracts marketed, sold, offered for
sale, issued, made, proposed to be made, or administered in
this state or sold to residents of this state shall be written,
printed, or typed in clear, understandable language that is
easy to read, and disclose the requirements set forth in this
section, as applicable.
(2) Service contracts insured under a reimbursement
insurance policy under RCW 48.110.050(2)(a) and
48.110.060 shall not be issued, sold, or offered for sale in this
state or sold to residents of this state unless the service contract conspicuously contains a statement in substantially the
following form: "Obligations of the service contract provider
under this service contract are insured under a service contract reimbursement insurance policy." The service contract
shall also conspicuously state the name and address of the
issuer of the reimbursement [insurance] policy and state that
the service contract holder is entitled to apply directly to the
reimbursement insurance company.
(3) Service contracts not insured under a reimbursement
insurance policy under RCW 48.110.050(2)(a) and
48.110.060 shall contain a statement in substantially the following form: "Obligations of the service contract provider
under this contract are backed by the full faith and credit of
the service contract provider."
(4) Service contracts shall state the name and address of
the service contract provider and shall identify any administrator if different from the service contract provider, the service contract seller, and the service contract holder to the
extent that the name of the service contract holder has been
furnished by the service contract holder. The identities of
such parties are not required to be preprinted on the service
contract and may be added to the service contract at the time
of sale.
(5) Service contracts shall state the purchase price of the
service contract and the terms under which the service contract is sold. The purchase price is not required to be preprinted on the service contract and may be negotiated at the
time of sale.
(6) Service contracts shall state the procedure to obtain
service or to file a claim, including but not limited to the procedures for obtaining prior approval for repair work, the tollfree telephone number if prior approval is necessary for service, and the procedure for obtaining emergency repairs performed outside of normal business hours or provide for
twenty-four-hour telephone assistance.
(7) Service contracts shall state the existence of any
deductible amount, if applicable.
(8) Service contracts shall specify the merchandise and
services to be provided and any limitations, exceptions, or
exclusions.
(9) Service contracts shall state any restrictions governing the transferability of the service contract, if applicable.
(10) Service contracts shall state the terms, restrictions,
or conditions governing cancellation of the service contract
prior to the termination or expiration date of the service contract by either the service contract provider or by the service
contract holder, which rights can be no more restrictive than
provided in RCW 48.110.050(3). The service contract provider of the service contract shall mail a written notice to the
service contract holder at the last known address of the ser[Title 48 RCW—page 393]
48.110.080
Title 48 RCW: Insurance
vice contract holder contained in the records of the service
contract provider at least twenty-one days prior to cancellation by the service contract provider. The notice shall state
the effective date of the cancellation and the true and actual
reason for the cancellation.
(11) Service contracts shall set forth the obligations and
duties of the service contract holder, including but not limited
to the duty to protect against any further damage and any
requirement to follow owner's manual instructions.
(12) Service contracts shall state whether or not the service contract provides for or excludes consequential damages
or preexisting conditions.
(13) Service contracts shall not contain a provision
which requires that any civil action brought in connection
with the service contract must be brought in the courts of a
jurisdiction other than this state. Service contracts that authorize binding arbitration to resolve claims or disputes may
allow for arbitration proceedings to be held at a location in
closest proximity to the service contract holder's permanent
residence. [1999 c 112 § 8.]
(c) A list of the locations where the service contracts are
marketed, sold, or offered for sale; and
(d) Written claim files that contain at least the dates,
amounts, and descriptions of claims related to the service
contracts.
(3) Except as provided in subsection (5) of this section,
the service contract provider shall retain all records required
to be maintained by subsection (1) of this section for at least
six years after the specified coverage has expired.
(4) The records required under this chapter may be, but
are not required to be, maintained on a computer disk or other
recordkeeping technology. If the records are maintained in
other than hard copy, the records shall be capable of duplication to legible hard copy.
(5) A service contract provider discontinuing business in
this state shall maintain its records until it furnishes the commissioner satisfactory proof that it has discharged all obligations to service contract holders in this state. [1999 c 112 §
10.]
48.110.100
48.110.080
48.110.080 Name of service contract provider—Use
of legal name—False or misleading statements—Restrictions on requirement to purchase service contract. (1) A
service contract provider shall not use in its name the words
insurance, casualty, guaranty, surety, mutual, or any other
words descriptive of the insurance, casualty, guaranty, or
surety business; or a name deceptively similar to the name or
description of any insurance or surety corporation, or to the
name of any other service contract provider. This subsection
does not apply to a company that was using any of the prohibited language in its name prior to January 1, 1999. However,
a company using the prohibited language in its name shall
conspicuously disclose in its service contracts the following
statement: "This agreement is not an insurance contract."
(2) Every service contract provider shall conduct its
business in its own legal name, unless the commissioner has
approved the use of another name.
(3) A service contract provider or its representative shall
not in its service contracts or literature make, permit, or cause
to be made any false or misleading statement, or deliberately
omit any material statement that would be considered misleading if omitted.
(4) A person, such as a bank, savings and loan association, lending institution, manufacturer, or seller shall not
require the purchase of a service contract as a condition of a
loan or a condition for the sale of any property. [1999 c 112
§ 9.]
48.110.090
48.110.090 Recordkeeping of service contract provider—Requirements—Duration—Form. (1) The service
contract provider shall keep accurate accounts, books, and
records concerning transactions regulated under this chapter.
(2) The service contract provider's accounts, books, and
records shall include the following:
(a) Copies of each type of service contract sold;
(b) The name and address of each service contract
holder, to the extent that the name and address have been furnished by the service contract holder;
[Title 48 RCW—page 394]
48.110.100 Termination of reimbursement insurance
policy. As applicable, an insurer that issued a reimbursement
insurance policy shall not terminate the policy until a notice
of termination in accordance with RCW 48.18.290 has been
given to the service contract provider and has been delivered
to the commissioner. The termination of a reimbursement
insurance policy does not reduce the issuer's responsibility
for service contracts issued by service contract providers
prior to the effective date of the termination. [1999 c 112 §
11.]
48.110.110
48.110.110 Service contract provider—Agent of
insurer which issued reimbursement insurance policy.
(1) Service contract providers are considered to be the agent
of the insurer which issued the reimbursement insurance policy for purposes of obligating the insurer to service contract
holders in accordance with the service contract and this chapter. Payment of the provider fee by the consumer to the service contract seller, service contract provider, or administrator constitutes payment by the consumer to the service contr act provider and to the insurer which issued the
reimbursement insurance policy. In cases where a service
contract provider is acting as an administrator and enlists
other service contract providers, the service contract provider
acting as the administrator shall notify the insurer of the
existence and identities of the other service contract providers.
(2) Chapter 112, Laws of 1999 does not prevent or limit
the right of an insurer which issued a reimbursement insurance policy to seek indemnification or subrogation against a
service contract provider if the issuer pays or is obligated to
pay the service contract holder sums that the service contract
provider was obligated to pay under the provisions of the service contract. [1999 c 112 § 12.]
48.110.120
48.110.120 Commissioner may conduct investigations. (1) The commissioner may conduct investigations of
service contract providers, administrators, service contract
sellers, insurers, and other persons to enforce this chapter and
protect service contract holders in this state. Upon request of
(2004 Ed.)
Rental Car Insurance
the commissioner, the service contract provider shall make
all accounts, books, and records concerning service contracts
sold by the service contract provider available to the commissioner which are necessary to enable the commissioner to
determine compliance or noncompliance with this chapter.
(2) The commissioner may take actions under RCW
48.02.080 or 48.04.050 which are necessary or appropriate to
enforce this chapter and the commissioner's rules and orders,
and to protect service contract holders in this state. [1999 c
112 § 13.]
48.110.130
48.110.130 Denial, suspension, or revocation of registration—Immediate suspension without notice or hearing—Fine. (1) The commissioner may, subject to chapter
48.04 RCW, deny, suspend, or revoke the registration of a
service contract provider if the commissioner finds that the
service contract provider:
(a) Has violated this chapter or the commissioner's rules
and orders;
(b) Has refused to be investigated or to produce its
accounts, records, and files for investigation, or if any of its
officers have refused to give information with respect to its
affairs or refused to perform any other legal obligation as to
an investigation, when required by the commissioner;
(c) Has, without just cause, refused to pay proper claims
or perform services arising under its contracts or has, without
just cause, caused service contract holders to accept less than
the amount due them or caused service contract holders to
employ attorneys or bring suit against the service contract
provider to secure full payment or settlement of claims;
(d) Is affiliated with or under the same general management or interlocking directorate or ownership as another service contract provider which unlawfully transacts business in
this state without having a registration;
(e) At any time fails to meet any qualification for which
issuance of the registration could have been refused had such
failure then existed and been known to the commissioner;
(f) Has been convicted of, or has entered a plea of guilty
or nolo contendere to, a felony;
(g) Is under suspension or revocation in another state
with respect to its service contract business;
(h) Has made a material misstatement in its application
for registration;
(i) Has obtained or attempted to obtain a registration
through misrepresentation or fraud;
(j) Has, in the transaction of business under its registration, used fraudulent, coercive, or dishonest practices; or
(k) Has failed to pay any judgment rendered against it in
this state regarding a service contract within sixty days after
the judgment has become final.
(2) The commissioner may, without advance notice or
hearing thereon, immediately suspend the registration of a
service contract provider if the commissioner finds that any
of the following circumstances exist:
(a) The provider is insolvent;
(b) A proceeding for receivership, conservatorship, rehabilitation, or other delinquency proceeding regarding the service contract provider has been commenced in any state; or
(c) The financial condition or business practices of the
service contract provider otherwise pose an imminent threat
(2004 Ed.)
48.115.001
to the public health, safety, or welfare of the residents of this
state.
(3) If the commissioner finds that grounds exist for the
suspension or revocation of a registration issued under this
chapter, the commissioner may, in lieu of suspension or revocation, impose a fine upon the service contract provider in an
amount not more than two thousand dollars per violation.
[1999 c 112 § 14.]
48.110.140 Application of consumer protection act.
The legislature finds that the practices covered by this chapter are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86
RCW. Violations of this chapter are not reasonable in relation
to the development and preservation of business. A violation
of this chapter is an unfair or deceptive act or practice in the
conduct of trade or commerce and an unfair method of competition, as specifically contemplated by RCW 19.86.020,
and is a violation of the consumer protection act, chapter
19.86 RCW. Any service contract holder injured as a result of
a violation of a provision of this chapter shall be entitled to
maintain an action pursuant to chapter 19.86 RCW against
the service contract provider and the insurer issuing the applicable service contract reimbursement [insurance] policy and
shall be entitled to all of the rights and remedies afforded by
that chapter. [1999 c 112 § 15.]
48.110.140
48.110.150 Rules. The commissioner may adopt rules
to implement and administer this chapter. [1999 c 112 § 16.]
48.110.150
48.110.900 Date of application to service contracts.
This chapter applies to all service contracts sold or offered for
sale ninety or more days after July 25, 1999. [1999 c 112 §
17.]
48.110.900
48.110.901 Severability—1999 c 112. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1999 c 112 § 19.]
48.110.901
Chapter 48.115
Chapter 48.115 RCW
RENTAL CAR INSURANCE
Sections
48.115.001
48.115.005
48.115.010
48.115.015
48.115.020
48.115.025
48.115.030
48.115.035
48.115.040
48.115.045
48.115.900
Short title.
Definitions.
License required.
Licensing rental car companies as rental car agents.
Rental car agent endorsees—Duties of rental car agent—
Training—Transaction records.
Restrictions on offer, sale, or solicitation—Consumer information.
Rental car agent prohibitions.
Enforcement—Commissioner may revoke, suspend, or refuse
to issue or renew license.
Treatment of moneys collected from renters purchasing insurance.
Rule making.
Captions not law.
48.115.001
48.115.001 Short title. This chapter may be known and
cited as the rental car insurance limited agent license act.
[2002 c 273 § 1.]
[Title 48 RCW—page 395]
48.115.005
Title 48 RCW: Insurance
48.115.005 Definitions. The definitions in this section
apply throughout this chapter unless the context clearly
requires otherwise.
(1) "Endorsee" means an unlicensed employee or agent
of a rental car agent who meets the requirements of this chapter.
(2) "Person" means an individual or a business entity.
(3) "Rental agreement" means any written master, corporate, group, or individual agreement setting forth the terms
and conditions governing the use of a rental car rented or
leased by a rental car company.
(4) "Rental car" means any motor vehicle that is intended
to be rented or leased for a period of thirty consecutive days
or less by a driver who is not required to possess a commercial driver's license to operate the motor vehicle and the
motor vehicle is either of the following:
(a) A private passenger motor vehicle, including a passenger van, recreational vehicle, minivan, or sports utility
vehicle; or
(b) A cargo vehicle, including a cargo van, pickup truck,
or truck with a gross vehicle weight of less than twenty-six
thousand pounds.
(5) "Rental car agent" means any rental car company that
is licensed to offer, sell, or solicit rental car insurance under
this chapter.
(6) "Rental car company" means any person in the business of renting rental cars to the public, including a franchisee.
(7) "Rental car insurance" means insurance offered, sold,
or solicited in connection with and incidental to the rental of
rental cars, whether at the rental office or by preselection of
coverage in master, corporate, group, or individual agreements that: (a) Is nontransferable; (b) applies only to the
rental car that is the subject of the rental agreement; and (c) is
limited to the following kinds of insurance:
(i) Personal accident insurance for renters and other
rental car occupants, for accidental death or dismemberment,
and for medical expenses resulting from an accident that
occurs with the rental car during the rental period;
(ii) Liability insurance, including uninsured or underinsured motorist coverage, whether offered separately or in
combination with other liability insurance, that provides protection to the renters and to other authorized drivers of a
rental car for liability arising from the operation of the rental
car during the rental period;
(iii) Personal effects insurance that provides coverage to
renters and other vehicle occupants for loss of, or damage to,
personal effects in the rental car during the rental period; and
(iv) Roadside assistance and emergency sickness protection insurance.
(8) "Renter" means any person who obtains the use of a
vehicle from a rental car company under the terms of a rental
agreement. [2002 c 273 § 2.]
48.115.005
48.115.010
48.115.010 License required. (1) A rental car company, or officer, director, employee, or agent of a rental car
company, may not offer, sell, or solicit the purchase of rental
car insurance unless that person is licensed under chapter
48.17 RCW or is in compliance with this chapter.
(2) The commissioner may issue a license to a rental car
company that is in compliance with this chapter authorizing
[Title 48 RCW—page 396]
the rental car company to act as a rental car agent under this
chapter, in connection with and incidental to rental agreements, on behalf of any insurer authorized to write rental car
insurance in this state. [2002 c 273 § 3.]
48.115.015
48.115.015 Licensing rental car companies as rental
car agents. A rental car company may apply to be licensed
as a rental car agent under, and if in compliance with, this
chapter by filing the following documents with the commissioner:
(1) A written application for licensure, signed by the
applicant or by an officer of the applicant, in the form prescribed by the commissioner that includes a listing of all locations at which the rental car company intends to offer, sell, or
solicit rental car insurance; and
(2)(a) A certificate by the insurer that is to be named in
the rental car agent license, stating that: (i) The insurer has
satisfied itself that the named applicant is trustworthy and
competent to act as its rental car agent, limited to this purpose; (ii) the insurer has reviewed the endorsee training and
education program required by RCW 48.115.020(4) and
believes that it satisfies the statutory requirements; and (iii)
the insurer will appoint the applicant to act as its rental car
agent to offer, sell, or solicit rental car insurance, if the
license for which the applicant is applying is issued by the
commissioner.
(b) The certification shall be subscribed by an authorized
representative of the insurer on a form prescribed by the commissioner. [2002 c 273 § 4.]
48.115.020
48.115.020 Rental car agent endorsees—Duties of
rental car agent—Training—Transaction records. (1) An
employee or agent of a rental car agent may be an endorsee
authorized to offer, sell, or solicit rental car insurance under
the authority of the rental car agent license, if all of the following conditions have been satisfied:
(a) The employee or agent is eighteen years of age or
older;
(b) The employee or agent is a trustworthy person and
has not committed any act set forth in RCW 48.17.530;
(c) The employee or agent has completed a training and
education program;
(d) The rental car company, at the time it submits its
rental car agent license application, also submits a list of the
names of all endorsees to its rental car agent license on forms
prescribed by the commissioner. The list shall be updated and
submitted to the commissioner quarterly on a calendar year
basis. Each list shall be retained by the rental car company for
a period of three years from submission; and
(e) The rental car company or its agent submits to the
commissioner with its initial rental car agent license application, and annually thereafter, a certification subscribed by an
officer of the rental car company on a form prescribed by the
commissioner, stating all of the following:
(i) No person other than an endorsee offers, sells, or
solicits rental car insurance on its behalf or while working as
an employee or agent of the rental car agent; and
(ii) All endorsees have completed the training and education program under subsection (4) of this section.
(2004 Ed.)
Rental Car Insurance
(2) A rental car agent's endorsee may only act on behalf
of the rental car agent in the offer, sale, or solicitation of a
rental car insurance. A rental car agent is responsible for, and
must supervise, all actions of its endorsees related to the
offering, sale, or solicitation of rental car insurance. The conduct of an endorsee acting within the scope of his or her
employment or agency is the same as the conduct of the
rental car agent for purposes of this chapter.
(3) The manager at each location of a rental car agent, or
the direct supervisor of the rental car agent's endorsees at
each location, must be an endorsee of that rental car agent and
is responsible for the supervision of each additional endorsee
at that location. Each rental car agent shall identify the
endorsee who is the manager or direct supervisor at each
location in the endorsee list that it submits under subsection
(1)(d) of this section.
(4) Each rental car agent shall provide a training and
education program for each endorsee prior to allowing an
endorsee to offer, sell, or solicit rental car insurance. Details
of the program must be submitted to the commissioner, along
with the license application, for approval prior to use, and
resubmitted for approval of any changes prior to use. This
training program shall meet the following minimum standards:
(a) Each endorsee shall receive instruction about the
kinds of insurance authorized under this chapter that may be
offered for sale to prospective renters; and
(b) Each endorsee shall receive training about the
requirements and limitations imposed on car rental agents
and endorsees under this chapter. The training must include
specific instruction that the endorsee is prohibited by law
from making any statement or engaging in any conduct
express or implied, that would lead a consumer to believe that
the:
(i) Purchase of rental car insurance is required in order
for the renter to rent a motor vehicle;
(ii) Renter does not have insurance policies in place that
already provide the coverage being offered by the rental car
company under this chapter; or
(iii) Endorsee is qualified to evaluate the adequacy of the
renter's existing insurance coverages.
(5) The training and education program submitted to the
commissioner is approved if no action is taken within thirty
days of its submission.
(6) An endorsee's authorization to offer, sell, or solicit
rental car insurance expires when the endorsee's employment
with the rental car company is terminated.
(7) The rental car agent shall retain for a period of one
year from the date of each transaction records which enable it
to identify the name of the endorsee involved in each rental
transaction when a renter purchases rental car insurance.
[2002 c 273 § 5.]
48.115.025 Restrictions on offer, sale, or solicitation—Consumer information. Insurance may not be
offered, sold, or solicited under this section, unless:
(1) The rental period of the rental car agreement is thirty
consecutive days or less;
(2) At every location where rental agreements are executed, the rental car agent or endorsee provides brochures or
other written materials to each renter who purchases rental
48.115.025
(2004 Ed.)
48.115.030
car insurance that clearly, conspicuously, and in plain language:
(a) Summarize, clearly and correctly, the material terms,
exclusions, limitations, and conditions of coverage offered to
renters, including the identity of the insurer;
(b) Describe the process for filing a claim in the event the
renter elects to purchase coverage, including a toll-free telephone number to report a claim;
(c) Provide the rental car agent's name, address, telephone number, and license number, as well as the commissioner's consumer hotline number;
(d) Inform the consumer that the rental car insurance
offered, sold, or solicited by the rental car agent may provide
a duplication of coverage already provided by a renter's personal automobile insurance policy, homeowners' insurance
policy, or by another source of coverage;
(e) Inform the consumer that the purchase by the renter
of the rental car insurance is not required in order to rent a
rental car from the rental car agent; and
(f) Inform the consumer that the rental car agent and the
rental car agent's endorsees are not qualified to evaluate the
adequacy of the renter's existing insurance coverages;
(3) The purchaser of rental car insurance acknowledges
in writing the receipt of the brochures or written materials
required by subsection (2) of this section;
(4) Evidence of the rental car insurance coverage is
stated on the face of the rental agreement;
(5) All costs for the rental car insurance are separately
itemized in the rental agreement;
(6) When the rental car insurance is not the primary
source of coverage, the consumer is informed in writing in
the form required by subsection (2) of this section that their
personal insurance will serve as the primary source of coverage; and
(7) For transactions conducted by electronic means, the
rental car agent must comply with the requirements of this
section, and the renter must acknowledge in writing or by
electronic signature the receipt of the following disclosures:
(a) The insurance policies offered by the rental car agent
may provide a duplication of coverage already provided by a
renter's personal automobile insurance policy, homeowners'
insurance policy, or by another source of coverage;
(b) The purchase by the renter of rental car insurance is
not required in order to rent a rental car from the rental car
agent; and
(c) The rental car agent and the rental car agent's endorsees are not qualified to evaluate the adequacy of the renter's
existing insurance coverages. [2002 c 273 § 6.]
48.115.030
48.115.030 Rental car agent prohibitions. A rental car
agent may not:
(1) Offer, sell, or solicit the purchase of insurance except
in conjunction with and incidental to rental car agreements;
(2) Advertise, represent, or otherwise portray itself or
any of its employees or agents as licensed insurers, insurance
agents, or insurance brokers;
(3) Pay any person, including a rental car agent endorsee,
any compensation, fee, or commission that is dependent primarily on the placement of insurance under the license issued
under this chapter;
[Title 48 RCW—page 397]
48.115.035
Title 48 RCW: Insurance
(4) Make any statement or engage in any conduct,
express or implied, that would lead a customer to believe that
the:
(a) Insurance policies offered by the rental car agent do
not provide a duplication of coverage already provided by a
renter's personal automobile insurance policy, homeowners'
insurance policy, or by another source of coverage;
(b) Purchase by the renter of rental car insurance is
required in order to rent a rental car from the rental car agent;
and
(c) Rental car agent or the rental car agent's endorsees
are qualified to evaluate the adequacy of the renter's existing
insurance coverages. [2002 c 273 § 7.]
48.115.035
48.115.035 Enforcement—Commissioner may
revoke, suspend, or refuse to issue or renew license. (1)
Every rental car agent licensed under this chapter shall
promptly reply in writing to an inquiry of the commissioner
relative to the business of car rental insurance.
(2)(a) In the event of a violation of this chapter by a
rental car agent, the commissioner may revoke, suspend, or
refuse to issue or renew any rental car agent's license that is
issued or may be issued under this chapter for any cause specified in any other provision of this title, or for any of the following causes:
(i) For any cause that the issuance of this license could
have been refused had it then existed and been known to the
commissioner;
(ii) If the licensee or applicant willfully violates or
knowingly participates in a violation of this title or any
proper order or rule of the commissioner;
(iii) If the licensee or applicant has obtained or attempted
to obtain a license through willful misrepresentation or fraud;
(iv) If the licensee or applicant has misappropriated or
converted funds that belong to, or should be paid to, another
person as a result of, or in connection with, a car rental or
insurance transaction;
(v) If the licensee or applicant has, with intent to deceive,
materially misrepresented the terms or effects of any insurance contract, or has engaged, or is about to engage, in any
fraudulent transaction;
(vi) If the licensee or applicant or officer of the licensee
or applicant has been convicted by final judgment of a felony;
(vii) If the licensee or applicant is shown to be, and is
determined by the commissioner, incompetent or untrustworthy, or a source of injury and loss to the public; and
(viii) If the licensee has dealt with, or attempted to deal
with, insurances, or has exercised powers relative to insurance outside the scope of the car rental agent license or other
insurance licenses.
(b) If any natural person named under a firm or corporate
car rental agent license, or application therefore, commits or
has committed any act, or fails or has failed to perform any
duty, that constitutes grounds for the commissioner to
revoke, suspend, or refuse to issue or renew the license or
application for license, the commissioner may revoke, suspend, refuse to renew, or refuse to issue the license or application for a license of the corporation or firm.
(c) Any conduct of an applicant or licensee that constitutes grounds for disciplinary action under this title may be
[Title 48 RCW—page 398]
addressed under this section regardless of where the conduct
took place.
(d) The holder of any license that has been revoked or
suspended shall surrender the license to the commissioner at
the commissioner's request.
(e) After notice and hearing the commissioner may
impose other penalties, including suspending the transaction
of insurance at specific rental locations where violations of
this section have occurred and imposing fines on the manager
or supervisor at each location responsible for the supervision
and conduct of each endorsee, as the commissioner determines necessary or convenient to carry out the purpose of this
chapter.
(3) The commissioner may suspend, revoke, or refuse to
renew any car rental agent license by an order served by mail
or personal service upon the licensee not less than fifteen
days prior to its effective date. The order is subject to the
right of the licensee to a hearing under chapter 48.04 RCW.
(4) The commissioner may temporarily suspend a
license by an order served by mail or personal service upon
the licensee not less than three days prior to its effective date.
However, the order must contain a notice of revocation and
include a finding that the public safety or welfare imperatively requires emergency action. These suspensions may
continue only until proceedings for revocation are concluded.
The commissioner may also temporarily suspend a license in
cases when proceedings for revocation are pending if it is
found that the public safety or welfare imperatively requires
emergency action.
(5) Service by mail under this section means posting in
the United States mail, addressed to the licensee at the most
recent address shown in the commissioner's licensing records
for the licensee. Service by mail is complete upon deposit in
the United States mail.
(6) If any person sells insurance in connection with or
incidental to rental car agreements, or holds himself or herself or a company out as a rental car agent, without satisfying
the requirements of this chapter, the commissioner is authorized to issue a cease and desist order. [2002 c 273 § 8.]
48.115.040
48.115.040 Treatment of moneys collected from renters purchasing insurance. A rental car agent is not required
to treat moneys collected from renters purchasing rental car
insurance as funds received in a fiduciary capacity, if:
(1) The charges for rental car insurance coverage are
itemized and ancillary to a rental transaction; and
(2) The insurer has consented in writing, signed by an
officer of the insurer, that premiums need not be segregated
from funds received by the rental car agent. [2002 c 273 § 9.]
48.115.045
48.115.045 Rule making. The commissioner may
adopt rules necessary to implement this chapter, including
rules establishing licensing fees to defray the cost of administering this chapter. [2002 c 273 § 10.]
48.115.900
48.115.900 Captions not law. Captions used in this act
are not any part of the law. [2002 c 273 § 12.]
(2004 Ed.)
Specialty Producer Licenses—Communications Equipment or Services
Chapter 48.120 RCW
SPECIALTY PRODUCER LICENSES—
COMMUNICATIONS EQUIPMENT OR SERVICES
Chapter 48.120
Sections
48.120.005
48.120.010
48.120.015
48.120.020
48.120.025
Definitions.
License required—Application.
Scope of license—Authorization.
Issuance of insurance—Restrictions—Conduct of employees
and authorized representatives.
Statutes governing vendor misconduct—Rules necessary to
implement chapter.
48.120.005 Definitions. The definitions in this section
apply throughout this chapter unless the context clearly
requires otherwise.
(1) "Communications equipment" means handsets, pagers, personal digital assistants, portable computers, automatic
answering devices, batteries, and their accessories or other
devices used to originate or receive communications signals
or service approved for coverage by rule of the commissioner, and also includes services related to the use of the
devices.
(2) "Communications equipment insurance program"
means an insurance program as described in RCW
48.120.015.
(3) "Communications service" means the service necessary to send, receive, or originate communications signals.
(4) "Customer" means a person or entity purchasing or
leasing communications equipment or communications services from a vendor.
(5) "Specialty producer license" means a license issued
under RCW 48.120.010 that authorizes a vendor to offer or
sell insurance as provided in RCW 48.120.015.
(6) "Supervising agent" means an agent licensed under
RCW 48.17.060 who provides training as described in RCW
48.120.020 and is affiliated to a licensed vendor.
(7) "Vendor" means a person or entity resident or with
offices in this state in the business of leasing, selling, or providing communications equipment or communications service to customers.
(8) "Appointing insurer" means the insurer appointing
the vendor as its agent under a specialty producer license.
[2002 c 357 § 1.]
48.120.005
48.120.010 License required—Application. (1) A
vendor that intends to offer insurance under RCW
48.120.015 must file a specialty producer license application
with the commissioner. Before the commissioner issues such
a license, the vendor must be appointed as the agent of one or
more authorized appointing insurers under a vendor's specialty producer license.
(2) Upon receipt of an application, if the commissioner is
satisfied that the application is complete, the commissioner
may issue a specialty producer license to the vendor. [2002 c
357 § 2.]
Chapter 48.125
48.120.020 Issuance of insurance—Restrictions—
Conduct of employees and authorized representatives.
(1) A vendor issued a specialty producer license may not
issue insurance under RCW 48.120.015 unless:
(a) At every location where customers are enrolled in
communications equipment insurance programs, written
material regarding the program is made available to prospective customers; and
(b) The communications equipment insurance program
is operated with the participation of a supervising agent who,
with authorization and approval from the appointing insurer,
supervises a training program for employees of the licensed
vendor.
(2) Employees and authorized representatives of a vendor issued a specialty producer license may only act on behalf
of the vendor in the offer, sale, solicitation, or enrollment of
customers in a communications equipment insurance program. The conduct of these employees and authorized representatives within the scope of their employment or agency is
the same as conduct of the vendor for purposes of this title.
[2002 c 357 § 4.]
48.120.020
48.120.025 Statutes governing vendor misconduct—
Rules necessary to implement chapter. (1) A vendor
issued a specialty producer license under this chapter is subject to RCW 48.17.540 through 48.17.560.
(2) The commissioner may adopt rules necessary for the
implementation of this chapter, including, but not limited to,
rules governing:
(a) The specialty producer license application process,
including any forms required to be used;
(b) The standards for approval and the required content
of written materials required under RCW 48.120.020(1)(a);
(c) The approval and required content of training materials required under RCW 48.120.020(1)(b);
(d) Establishing license fees to defray the cost of administering the specialty producer licensure program;
(e) Establishing requirements for the remittance of premium funds to the supervising agent under authority from the
program insurer; and
(f) Determining the applicability or nonapplicability of
other provisions of this title to this chapter. [2002 c 357 § 5.]
48.120.025
48.120.010
48.120.015 Scope of license—Authorization. A specialty producer license authorizes a vendor and its employees
and authorized representatives to offer and sell to, enroll in,
and bill and collect premiums from customers for insurance
covering communications equipment on a master, corporate,
group, or individual policy basis. [2002 c 357 § 3.]
48.120.015
(2004 Ed.)
Chapter 48.125 RCW
SELF-FUNDED MULTIPLE EMPLOYER
WELFARE ARRANGEMENTS
Chapter 48.125
Sections
48.125.003
48.125.005
48.125.010
48.125.020
48.125.030
48.125.040
48.125.050
48.125.060
48.125.070
48.125.080
48.125.090
48.125.100
48.125.110
48.125.120
48.125.130
Short title.
Purposes.
Definitions.
Certificate of authority required.
Certificate of authority—Requirements for issuance.
Certificate of authority—Continued compliance with certain
conditions—Commissioner's discretion.
Certificate of authority—Application—Form—Documentation.
Surplus required—Amount—Enforcement.
Contribution rates.
Certificate of authority—Granting or denying application.
Reporting requirements.
Failure to comply with chapter—Sanctions.
Certificate of authority—Failure to obtain.
Policy must contain specific notice.
Additional compliance requirements.
[Title 48 RCW—page 399]
48.125.003
48.125.140
48.125.150
48.125.160
48.125.900
48.125.901
Title 48 RCW: Insurance
Examination of operations—Commissioner's powers—Definition of affiliate.
Chapter not applicable.
Taxable amounts—Participant contributions.
Severability—2004 c 260.
Effective date—2004 c 260.
48.125.003
48.125.003 Short title. This chapter may be cited as the
"self-funded multiple employer welfare arrangement regulation act." [2004 c 260 § 1.]
48.125.005
48.125.005 Purposes. The purposes of this chapter are
to:
(1) Provide for the authorization and registration of selffunded multiple employer welfare arrangements;
(2) Regulate self-funded multiple employer welfare
arrangements in order to ensure the financial integrity of the
arrangements;
(3) Provide reporting requirements for self-funded multiple employer welfare arrangements; and
(4) Provide for sanctions against self-funded multiple
employer welfare arrangements organized, operated, providing benefits, or maintained in this state that do not comply
with this chapter. [2004 c 260 § 2.]
tractors or subcontractors with federal agencies at a federal
government facility within this state.
(6) "Qualified actuary" means an individual who:
(a) Is a member in good standing of the American academy of actuaries; and
(b) Is qualified to sign statements of actuarial opinion for
health annual statements in accordance with the American
academy of actuaries qualification standards for actuaries
signing the statements.
(7) "Self-funded multiple employer welfare arrangement" or "arrangement" means a multiple employer welfare
arrangement that does not provide for payment of benefits
under the arrangement solely through a policy or policies of
insurance issued by one or more insurance companies
licensed under this title.
(8) "Surplus" means the excess of the assets of a selffunded multiple employer welfare arrangement over the liabilities of the arrangement. The assets and liabilities should
be determined in accordance with the accounting practices
and procedures manuals as adopted by the national association of insurance commissioners, unless otherwise provided
by law. [2004 c 260 § 3.]
48.125.020
48.125.010
48.125.010 Definitions. The definitions in this section
apply throughout this chapter unless the context clearly
requires otherwise.
(1) "Bona fide association" means an association of
employers that has been in existence for a period of not less
than ten years prior to sponsoring a self-funded multiple
employer welfare arrangement, during which time the association has engaged in substantial activities relating to the common interests of member employers, and that continues to
engage in substantial activities in addition to sponsoring an
arrangement. However, an association that was formed and
began sponsoring an arrangement prior to October 1, 1995, is
not subject to the requirement that the association be in existence for ten years prior to sponsoring an arrangement.
(2) "Employer" means any person, firm, corporation,
partnership, business trust, legal representative, or other business entity which engages in any business, industry, profession, or activity in this state and employs one or more other
persons or who contracts with one or more persons, the
essence of which is the personal labor of that person or persons.
(3) "Health care service" means that service offered or
provided by health care facilities and health care providers
relating to the prevention, cure, or treatment of illness, injury,
or disease.
(4) "Incurred claims" means the value of all amounts
paid or payable under a multiple employer welfare arrangement determined by contract to be a liability with an incurred
claims date during the valuation period. It includes all payments during the valuation period plus a reasonable estimate
of unpaid claims liabilities.
(5) "Multiple employer welfare arrangement" means a
multiple employer welfare arrangement as defined by 29
U.S.C. Sec. 1002, but does not include an arrangement, plan,
program, or interlocal agreement of or between any political
subdivisions of this state, any federal agencies, or any con[Title 48 RCW—page 400]
48.125.020 Certificate of authority required. (1)
Except as provided in subsection (3) of this section, a person
may not establish, operate, provide benefits, or maintain a
self-funded multiple employer welfare arrangement in this
state unless the arrangement first obtains a certificate of
authority from the commissioner.
(2) An arrangement is considered to be established, operated, providing benefits, or maintained in this state if (a) one
or more of the employer members participating in the
arrangement is either domiciled in or maintains a place of
business in this state, or (b) the activities of the arrangement
or employer members fall under the scope of RCW
48.01.020.
(3) An arrangement established, operated, providing
benefits, or maintained in this state prior to December 31,
2003, has until April 1, 2005, to file a substantially complete
application for a certificate of authority. An arrangement that
files a substantially complete application for a certificate of
authority by that date is allowed to continue to operate without a certificate of authority until the commissioner approves
or denies the arrangement's application for a certificate of
authority. [2004 c 260 § 4.]
48.125.030
48.125.030 Certificate of authority—Requirements
for issuance. The commissioner may not issue a certificate
of authority to a self-funded multiple employer welfare
arrangement unless the arrangement establishes to the satisfaction of the commissioner that the following requirements
have been satisfied by the arrangement:
(1) The employers participating in the arrangement are
members of a bona fide association;
(2) The employers participating in the arrangement exercise control over the arrangement, as follows:
(a) Subject to (b) of this subsection, control exists if the
board of directors of the bona fide association or the employers participating in the arrangement have the right to elect at
least seventy-five percent of the individuals designated in the
(2004 Ed.)
Self-Funded Multiple Employer Welfare Arrangements
arrangement's organizational documents as having control
over the operations of the arrangement and the individuals
designated in the arrangement's organizational documents in
fact exercise control over the operation of the arrangement;
and
(b) The use of a third-party administrator to process
claims and to assist in the administration of the arrangement
is not evidence of the lack of exercise of control over the
operation of the arrangement;
(3) In this state, the arrangement provides only health
care services;
(4) In this state, the arrangement provides or arranges
benefits for health care services in compliance with those
provisions of this title that mandate particular benefits or
offerings and with provisions that require access to particular
types or categories of health care providers and facilities;
(5) In this state, the arrangement provides or arranges
benefits for health care services in compliance with RCW
48.43.500 through 48.43.535, 48.43.545, and 48.43.550;
(6) The arrangement provides health care services to not
less than twenty employers and not less than seventy-five
employees;
(7) The arrangement may not solicit participation in the
arrangement from the general public. However, the arrangement may employ licensed insurance agents who receive a
commission, unlicensed individuals who do not receive a
commission, and may contract with a licensed insurance producer who may be paid a commission or other remuneration,
for the purpose of enrolling and renewing the enrollments of
employers in the arrangement;
(8) The arrangement has been in existence and operated
actively for a continuous period of not less than ten years as
of December 31, 2003, except for an arrangement that has
been in existence and operated actively since December 31,
2000, and is sponsored by an association that has been in
existence more than twenty-five years; and
(9) The arrangement is not organized or maintained
solely as a conduit for the collection of premiums and the forwarding of premiums to an insurance company. [2004 c 260
§ 5.]
48.125.040
48.125.040 Certificate of authority—Continued compliance with certain conditions—Commissioner's discretion. (1) In addition to the requirements under RCW
48.125.030, self-funded multiple employer welfare arrangements are subject to the following requirements:
(a) Arrangements must maintain a calendar year for
operations and reporting purposes;
(b) Arrangements must satisfy one of the following
requirements:
(i)(A) The arrangement must deposit two hundred thousand dollars with the commissioner to be used for the payment of claims in the event that the arrangement becomes
insolvent; and
(B) The arrangement must submit to the commissioner a
written plan of operation that, in the reasonable discretion of
the commissioner, ensures the financial integrity of the
arrangement; or
(ii) The arrangement demonstrates to the reasonable satisfaction of the commissioner the ability of the arrangement
(2004 Ed.)
48.125.050
to remain financially solvent, for which purpose the commissioner may consider:
(A) The pro forma financial statements of the arrangement;
(B) The types and levels of excess of loss insurance coverage, including the attachment points of the coverage and
whether the points are reflected as annual or monthly levels;
(C) Whether a deposit is required for each employee
covered under the arrangement equal to at least one month's
cost of providing benefits under the arrangement;
(D) The experience of the individuals who will be
involved in the management of the arrangement, including
employees, independent contractors, and consultants; and
(E) Other factors as reasonably determined by the commissioner to be relevant to a determination of whether the
arrangement is able to operate in a financially solvent manner.
(2) The commissioner may require that the articles,
bylaws, agreements, trusts, or other documents or instruments describing the rights and obligations of the employers,
employees, and beneficiaries of the arrangement provide that
employers participating in the arrangement are subject to pro
rata assessment for all liabilities of the arrangement.
(3) Self-funded multiple employer welfare arrangements
with fewer than one thousand covered persons are required to
have aggregate stop loss coverage, with an attachment point
of one hundred twenty-five percent of expected claims. If the
arrangement is allowed to assess the participating employers
to cover actual or projected claims in excess of plan assets,
then the attachment point shall be increased by the amount of
the allowable assessments. If the required attachment point
exceeds one hundred seventy-five percent of expected
claims, aggregate stop loss coverage shall be waived.
Arrangements with one thousand covered persons or more
are not required to have aggregate stop loss coverage.
(4) The arrangement must demonstrate continued compliance with respect to the conditions set forth in this section
as a condition of receiving and maintaining a certificate of
authority. The commissioner may waive continued compliance with respect to the conditions in this section at any time
after the commissioner has granted a certificate of authority
to an arrangement. [2004 c 260 § 6.]
48.125.050
48.125.050 Certificate of authority—Application—
Form—Documentation. A self-funded multiple employer
welfare arrangement must apply for a certificate of authority
on a form prescribed by the commissioner and must submit
the application, together with the following documents, to the
commissioner:
(1) A copy of all articles, bylaws, agreements, trusts, or
other documents or instruments describing the rights and
obligations of the employers, employees, and beneficiaries of
the arrangement;
(2) A copy of the summary plan description or summary
plan descriptions of the arrangement, including those filed or
required to be filed with the United States department of
labor, together with any amendments to the description;
(3) Evidence of coverage of or letters of intent to participate executed by at least twenty employers providing allowable benefits to at least seventy-five employees;
[Title 48 RCW—page 401]
48.125.060
Title 48 RCW: Insurance
(4) A copy of the arrangement's most recent year's financial statements that must include, at a minimum, a balance
sheet, an income statement, a statement of changes in financial position, and an actuarial opinion signed by a qualified
actuary stating that the unpaid claim liability of the arrangement satisfies the standards under this title;
(5) Proof that the arrangement maintains or will maintain
fidelity bonds required by the United States department of
labor under the employee retirement income security act of
1974, 29 U.S.C. Sec. 1001 et seq.;
(6) A copy of any excess of loss insurance coverage policies maintained or proposed to be maintained by the arrangement;
(7) Biographical reports on forms prescribed by the
national association of insurance commissioners evidencing
the general trustworthiness and competence of each individual who is serving or who will serve as an officer, director,
trustee, employee, or fiduciary of the arrangement;
(8) Fingerprint cards and current fees payable to the
Washington state patrol to perform a state and national criminal history background check of any person who exercises
control over the financial dealings and operations of the selffunded multiple employer welfare arrangement, including
collection of employer contributions, investment of assets,
payment of claims, rate setting, and claims adjudication. The
fingerprints and any additional information may be submitted
to the federal bureau of investigation and any results of the
check must be returned to the office of the insurance commissioner. The results may be disseminated to any governmental
agency or entity authorized to receive them; and
(9) A statement executed by a representative of the
arrangement certifying, to the best knowledge and belief of
the representative, that:
(a) The arrangement is in compliance with RCW
48.125.030;
(b) The arrangement is in compliance with the requirements of the employee retirement income security act of
1974, 29 U.S.C. Sec. 1001 et seq., or a statement of any
requirements with which the arrangement is not in compliance and a statement of proposed corrective actions; and
(c) The arrangement is in compliance with RCW
48.125.060 and 48.125.070. [2004 c 260 § 7.]
48.125.060
48.125.060 Surplus required—Amount—Enforcement. Self-funded multiple employer welfare arrangements
must maintain continuously a surplus equal to at least ten percent of the next twelve months projected incurred claims or
two million dollars, whichever is greater. The commissioner
may proceed against self-funded multiple employer welfare
arrangements that fail to maintain the level of surplus
required by this section in any manner that the commissioner
is authorized to proceed against a health care service contractor that failed to maintain minimum net worth. [2004 c 260 §
8.]
48.125.070
48.125.070 Contribution rates. A self-funded multiple
employer welfare arrangement must establish and maintain
contribution rates for participation under the arrangement
that satisfy either of the following requirements:
[Title 48 RCW—page 402]
(1) Contribution rates must equal or exceed the sum of
projected incurred claims for the year, plus all projected costs
of operation of the arrangement for the year, plus an amount
equal to any deficiency in the surplus of the arrangement for
the prior year, minus an amount equal to the surplus of the
arrangement in excess of the minimum required level of surplus; or
(2) Contribution rates must equal or exceed a funding
level established by a report prepared by a qualified actuary.
[2004 c 260 § 9.]
48.125.080
48.125.080 Certificate of authority—Granting or
denying application. (1) The commissioner shall grant or
deny an application for a certificate of authority within one
hundred eighty days of the date that a completed application,
together with the items designated in RCW 48.125.050, is
submitted to the commissioner.
(2) The commissioner shall grant the application of an
arrangement that satisfies the applicable requirements of
RCW 48.125.030 through 48.125.070.
(3) The commissioner shall deny the application of an
arrangement that does not satisfy the applicable requirements
of RCW 48.125.030 through 48.125.070. Denial of an application for a certificate of authority is subject to appeal under
chapter 34.05 RCW.
(4) A certificate of authority granted to an arrangement is
effective unless revoked by the commissioner under RCW
48.125.100. [2004 c 260 § 10.]
48.125.090
48.125.090 Reporting requirements. (1) A selffunded multiple employer welfare arrangement must comply
with the reporting requirements of this section.
(2) Every arrangement holding a certificate of authority
from the commissioner must file its financial statements as
required by this title and by the commissioner in accordance
with the accounting practices and procedures manuals as
adopted by the national association of insurance commissioners, unless otherwise provided by law.
(3) Every arrangement must comply with the provisions
of chapters 48.12 and 48.13 RCW.
(4) Every arrangement holding a certificate of authority
shall, annually, before the first day of March, file with the
commissioner a true statement of its financial condition,
transactions, and affairs as of the thirty-first day of December
of the preceding year. The statement forms must be those
forms approved by the national association of insurance commissioners for health insurance. The statement must be verified by the oaths of at least two officers of the arrangement.
Additional information may be required by this title or by the
request of the commissioner.
(5) Every arrangement must report their annual and other
statements in the same manner required of other insurers by
rule of the commissioner.
(6) The arrangement must file with the commissioner a
copy of the arrangement's internal revenue service form 5500
together with all attachments to the form, at the time required
for filing the form. [2004 c 260 § 11.]
48.125.100
48.125.100 Failure to comply with chapter—Sanctions. (1) The commissioner may impose sanctions against a
(2004 Ed.)
Self-Funded Multiple Employer Welfare Arrangements
self-funded multiple employer welfare arrangement that fails
to comply with this chapter. The maximum fine may not
exceed ten thousand dollars for each violation.
(2) The commissioner may issue a notice of intent to
revoke the certificate of authority of a self-funded multiple
employer welfare arrangement that fails to comply with
RCW 48.125.060, 48.125.070, or 48.125.090. If, within
sixty days of receiving notice under this subsection, the
arrangement fails to file with the commissioner a plan to
brin g the arrangement into com pliance with RCW
48.125.060, 48.125.070, or 48.125.090, the commissioner
may revoke the arrangement's certificate of authority. A
revocation of a certificate of authority is subject to appeal
under chapter 34.05 RCW.
(3) An arrangement that fails to maintain the level of surplus required by RCW 48.125.060 is subject to the sanctions
authorized in RCW 48.44.160 through 48.44.166. [2004 c
260 § 12.]
48.125.110
48.125.110 Certificate of authority—Failure to
obtain. A self-funded multiple employer welfare arrangement organized, operated, providing benefits, or maintained
in this state without a certificate of authority is in violation of
this title. [2004 c 260 § 13.]
48.125.120
48.125.120 Policy must contain specific notice. Each
policy issued by a self-funded multiple employer welfare
arrangement must contain, in ten-point type on the front page
and the declaration page, the following notice:
48.125.901
arrangement in the course of that part of the commissioner's
examination covering the same general subject matter as the
audit. The commissioner may incorporate the audit report in
his or her report of the examination.
(4)(a) The commissioner may also examine any affiliate
of the self-funded multiple employer welfare arrangement.
An examination of an affiliate is limited to the activities or
operations of the affiliate that may impact the financial position of the arrangement.
(b) For the purposes of this section, "affiliate" has the
same meaning as defined in RCW 48.31C.010.
(5) Whenever an examination is made, all of the provisions of chapter 48.03 RCW not inconsistent with this chapter shall be applicable. In lieu of making an examination
himself or herself, the commissioner may, in the case of a foreign self-funded multiple employer welfare arrangement,
accept an examination report of the applicant by the regulatory official in its state of domicile. In the case of a domestic
self-funded multiple employer welfare arrangement, the
commissioner may accept an examination report of the applicant by the regulatory official of a state that has already
licensed the arrangement. [2004 c 260 § 16.]
48.125.150 Chapter not applicable. This chapter does
not apply to:
(1) Single employer entities;
(2) Taft-Hartley plans; or
(3) Self-funded multiple employer welfare arrangements
that do not provide coverage for health care services. [2004
c 260 § 17.]
48.125.150
"NOTICE
48.125.160 Taxable amounts—Participant contributions. Participant contributions used to determine the taxable
amounts in this state under RCW 48.14.0201 shall be determined in the same manner as premiums taxable in this state
are determined under RCW 48.14.090. [2004 c 260 § 18.]
48.125.160
This policy is issued by a self-funded multiple employer welfare arrangement. A self-funded multiple employer welfare
arrangement may not be subject to all of the insurance laws
and regulations of your state. State insurance insolvency
guaranty funds are not available for a self-funded multiple
employer welfare arrangement." [2004 c 260 § 14.]
48.125.130
48.125.130 Additional compliance requirements. A
self-funded multiple employer welfare arrangement is subject to RCW 48.43.300 through 48.43.370, the rehabilitation
provisions under chapter 48.31 RCW, and chapter 48.99
RCW. [2004 c 260 § 15.]
48.125.140
48.125.140 Examination of operations—Commissioner's powers—Definition of affiliate. (1) The commissioner may make an examination of the operations of any
self-funded multiple employer welfare arrangement as often
as he or she deems necessary in order to carry out the purposes of this chapter.
(2) Every self-funded multiple employer welfare
arrangement shall submit its books and records relating to its
operation for financial condition and market conduct examinations and in every way facilitate them. For the purpose of
examinations, the commissioner may issue subpoenas,
administer oaths, and examine the officers and principals of
the [self-funded] multiple employer welfare arrangement.
(3) The commissioner may elect to accept and rely on
audit reports made by an independent certified public
accountant for the self-funded multiple employer welfare
(2004 Ed.)
48.125.900 Severability--2004 c 260. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[2004 c 260 § 28.]
48.125.900
48.125.901 Effective date--2004 c 260. This act is necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its
existing public institutions, and takes effect immediately
[March 31, 2004]. [2004 c 260 § 29.]
48.125.901
[Title 48 RCW—page 403]
Title 49
Chapters
49.04
49.08
49.12
49.17
49.19
49.22
49.24
49.26
49.28
49.30
49.32
49.36
49.38
49.40
49.44
49.46
49.48
49.52
49.56
49.60
49.64
49.66
49.70
49.74
49.78
Title 49
LABOR REGULATIONS
Chapter 49.04
Apprenticeship.
Arbitration of disputes.
Industrial welfare.
Washington industrial safety and health act.
Safety—Health care settings.
Safety—Crime prevention.
Health and safety—Underground workers.
Health and safety—Asbestos.
Hours of labor.
Agricultural labor.
Injunctions in labor disputes.
Labor unions.
Theatrical enterprises.
Seasonal labor.
Violations—Prohibited practices.
Minimum wage act.
Wages—Payment—Collection.
Wages—Deductions—Contributions—
Rebates.
Wages—Priorities—Preferences.
Discrimination—Human rights commission.
Employee benefit plans.
Health care activities.
Worker and community right to know act.
Affirmative action.
Family leave.
Reviser's note: Throughout this title, "director of labor and industries"
has been substituted for "commissioner of labor," such office having been
abolished by the administrative code of 1921 (1921 c 7 §§ 3, 80, and 135).
Apprentices to be paid prevailing wage on public works: RCW 39.12.021.
Collective bargaining with employees of city-owned utilities: RCW
35.22.350.
Community renewal law: Chapter 35.81 RCW.
Department of labor and industries: Chapter 43.22 RCW.
Elevators, lifting devices and moving walks: Chapter 70.87 RCW.
Employee benefit plans when private utility acquired: RCW 54.04.130.
Employment agencies: Chapter 19.31 RCW.
Industrial products of prisoners: RCW 72.01.150, chapter 72.60 RCW.
Job protection for members of state militia: RCW 38.40.050.
Labor and employment of prisoners: Chapter 72.64 RCW.
Lien of employees for contributions to benefit plans: Chapter 60.76 RCW.
Marine employees—Public employment relations: Chapter 47.64 RCW.
Occupational and environmental research facility at University of Washington: RCW 28B.20.450 through 28B.20.458.
Promotional printing contracts of apple, fruit, dairy products commissions—
Conditions of employment: RCW 15.24.086.
Public employees' collective bargaining, arbitration of disputes: RCW
41.56.100.
Public employment: Title 41 RCW.
Sheriff's office, civil service: Chapter 41.14 RCW.
Unemployment compensation: Title 50 RCW.
Unfair practices—Consumer protection—Act does not impair labor organizations: RCW 19.86.070.
Workers' compensation: Title 51 RCW.
Youth development and conservation corps: RCW 79A.05.500.
(2004 Ed.)
Chapter 49.04 RCW
APPRENTICESHIP
Sections
49.04.010
49.04.030
49.04.040
49.04.050
49.04.060
49.04.070
49.04.080
49.04.090
49.04.100
49.04.110
49.04.120
49.04.130
49.04.141
49.04.150
49.04.900
49.04.910
Apprenticeship council created—Composition—Terms—
Compensation—Duties.
Supervisor of apprenticeship—Duties.
Apprenticeship committees—Composition—Duties.
Apprenticeship program standards.
Apprenticeship agreements.
Limitation.
On-the-job training agreements and projects—Supervisor to
promote.
On-the-job training agreements and projects—Agreements
with federal agencies.
Apprenticeship programs—Civil rights act advancement.
Woman and racial minority representation in apprenticeship
programs—Noncompliance.
Woman and racial minority representation—Community colleges, vocational, or high schools to enlist woman and racial
minority representation in apprenticeship programs.
Woman and racial minority representation—Employer and
employee organizations, apprenticeship council and committees, etc., to enlist woman and racial minority representation in apprenticeship programs.
Transportation opportunities—Report.
Associate degree pathway.
Severability—1941 c 231.
Chapter not affected by certain laws against discrimination in
employment because of age.
Apprenticeship agreements, inmates of state school for girls (Maple Lane
school): RCW 72.20.090.
Child labor: RCW 26.28.060, 26.28.070.
49.04.010 Apprenticeship council created—Composition—Terms—Compensation—Duties. The director of
labor and industries shall appoint an apprenticeship council,
composed of three representatives each from employer and
employee organizations, respectively. The terms of office of
the members of the apprenticeship council first appointed by
the director of labor and industries shall be as follows: One
representative each of employers and employees shall be
appointed for one year, two years, and three years, respectively. Thereafter, each member shall be appointed for a term
of three years. The governor shall appoint a public member to
the apprenticeship council for a three-year term. The appointment of the public member is subject to confirmation by the
senate. Each member shall hold office until a successor is
appointed and has qualified and any vacancy shall be filled
by appointment for the unexpired portion of the term. A designated representative from each of the following: The work
force training and education coordinating board, state board
for community and technical colleges, employment security
department, and United States department of labor, apprenticeship, training, employer, and labor services, shall be ex
officio members of the apprenticeship council. Ex officio
members shall have no vote. Each member of the council, not
otherwise compensated by public moneys, shall be reimbursed for travel expenses in accordance with RCW
43.03.050 and 43.03.060 and shall be compensated in accordance with RCW 43.03.240. The apprenticeship council is
49.04.010
[Title 49 RCW—page 1]
49.04.030
Title 49 RCW: Labor Regulations
authorized to approve apprenticeship programs, and establish
apprenticeship program standards as rules, including requirements for apprentice-related and supplemental instruction,
coordination of instruction with job experiences, and instructor qualifications. The council shall consider recommendations from the state board for community and technical colleges on matters of apprentice-related and supplemental
instruction, coordination of instruction with job experiences,
and instructor qualifications. The rules for apprenticeship
instructor qualifications shall either be by reference or reasonably similar to the applicable requirements established by
or pursuant to chapter 28B.50 RCW. The council is further
authorized to issue such rules as may be necessary to carry
out the intent and purposes of this chapter, including a procedure to resolve an impasse should a tie vote of the council
occur, and perform such other duties as are hereinafter
imposed.
Not less than once a year the apprenticeship council shall
make a report to the director of labor and industries of its
activities and findings which shall be available to the public.
[2001 c 204 § 1; 1984 c 287 § 97; 1982 1st ex.s. c 39 § 2;
1979 ex.s. c 37 § 1; 1977 c 75 § 72; 1975-'76 2nd ex.s. c 34 §
143; 1967 c 6 § 1; 1961 c 114 § 1; 1941 c 231 § 1; Rem. Supp.
1941 § 7614-3. Formerly RCW 49.04.010 and 49.04.020.]
Legislative findings—Severability—Effective date—1984 c 287:
See notes following RCW 43.03.220.
Effective date—Severability—1975-'76 2nd ex.s. c 34: See notes following RCW 2.08.115.
49.04.030
49.04.030 Supervisor of apprenticeship—Duties.
Subject to the confirmation of the state apprenticeship council by a majority vote, the director of labor and industries
shall appoint and deputize an assistant director to be known
as the supervisor of apprenticeship. Under the supervision of
the director of labor and industries and with the advice and
guidance of the apprenticeship council, the supervisor shall:
(1) Encourage and promote apprenticeship programs conforming to the standards established under this chapter, and
in harmony with the policies of the United States department
of labor; (2) act as secretary of the apprenticeship council and
of state apprenticeship committees; (3) when authorized by
the apprenticeship council, register apprenticeship agreements that are in the best interests of the apprentice and conform with standards established under this chapter; (4) keep a
record of apprenticeship agreements and upon successful
completion issue certificates of completion of apprenticeship; and (5) terminate or cancel any apprenticeship agreements in accordance with the provisions of the agreements.
The supervisor may act to bring about the settlement of
differences arising out of the apprenticeship agreement where
such differences cannot be adjusted locally. The director of
labor and industries is authorized to appoint such other personnel as may be necessary to aid the supervisor of apprenticeship in the execution of the supervisor's functions under
this chapter. [2001 c 204 § 2; 1979 ex.s. c 37 § 2; 1961 c 114
§ 2; 1941 c 231 § 2; Rem. Supp. 1941 § 7614-4.]
Rehabilitation services for individuals with disabilities: Chapter 74.29
RCW.
49.04.040
49.04.040 Apprenticeship committees—Composition—Duties. Upon July 22, 2001, all newly approved
[Title 49 RCW—page 2]
apprenticeship programs must be represented by either a unilateral or joint apprenticeship committee. Apprenticeship
committees must conform to this chapter, the rules adopted
by the apprenticeship council, and 29 C.F.R. Part 29 and must
be approved by the apprenticeship council. Apprenticeship
committees may be approved whenever the apprentice training needs justify such establishment. Such apprenticeship
committees shall be composed of an equal number of
employer and employee representatives who may be chosen:
(1) From names submitted by the respective local or state
employer and employee organizations served by the apprenticeship committee; or
(2) In a manner which selects representatives of management and nonmanagement served by the apprenticeship committee. The council may act as the apprentice representative
when the council determines there is no feasible method to
choose nonmanagement representatives.
Apprenticeship committees shall devise standards for
apprenticeship programs and operate such programs in accordance with the standards established by this chapter and by
council-adopted rules. The council and supervisor may provide aid and technical assistance to apprenticeship program
sponsors and applicants, or potential applicants. [2001 c 204
§ 3; 1941 c 231 § 3; Rem. Supp. 1941 § 7614-5.]
49.04.050
49.04.050 Apprenticeship program standards. To be
eligible for registration, apprenticeship program standards
must conform to the rules adopted by the apprenticeship
council. [2001 c 204 § 4; 1979 ex.s. c 37 § 3; 1961 c 114 § 3;
1941 c 231 § 4; Rem. Supp. 1941 § 7614-6.]
49.04.060
49.04.060 Apprenticeship agreements. For the purposes of this chapter an apprenticeship agreement is a written
agreement between an apprentice and either the apprentice's
employer or employers, or an apprenticeship committee acting as agent for an employer or employers, containing the
terms and conditions of the employment and training of the
apprentice. [2001 c 204 § 5; 1941 c 231 § 5; Rem. Supp.
1941 § 7614-7.]
49.04.070
49.04.070 Limitation. The provisions of this chapter
shall apply to a person, firm, corporation or craft only after
such person, firm, corporation or craft has voluntarily elected
to conform with its provisions. [1941 c 231 § 6; Rem. Supp.
1941 § 7614-8.]
49.04.080
49.04.080 On-the-job training agreements and
projects—Supervisor to promote. Under the supervision
of the director of labor and industries and with the advice and
guidance of the apprenticeship council, the supervisor of
apprenticeship shall encourage and promote the making of
such other types of on-the-job training agreements and
projects, in addition to apprenticeship agreements, as the
supervisor shall find meritorious. [2001 c 204 § 6; 1963 c
172 § 1.]
49.04.090
49.04.090 On-the-job training agreements and
projects—Agreements with federal agencies. The director
of labor and industries shall have authority to enter into and
perform, through the supervisor of apprenticeship, agree(2004 Ed.)
Apprenticeship
ments with appropriate federal departments or agencies for
the development, administration and servicing of on-the-job
training projects. Further, the director of labor and industries,
through the supervisor of apprenticeship, shall have power to
receive and administer funds provided by the federal government for such purposes. [1963 c 172 § 2.]
49.04.100
49.04.100 Apprenticeship programs—Civil rights
act advancement. As provided by the rules adopted by the
apprenticeship council, apprenticeship programs entered into
under authority of this chapter with five or more apprentices
shall conform with 29 C.F.R. Part 30 to the extent required by
federal law while advancing the nondiscriminatory principles
of the Washington state civil rights act, RCW 49.60.400.
[2001 c 204 § 7; 1995 c 67 § 7; 1990 c 72 § 1; 1985 c 6 § 17;
1969 ex.s. c 183 § 2.]
Purpose—Construction—1990 c 72; 1969 ex.s. c 183: "It is the policy
of the legislature and the purpose of this act to provide every citizen in this
state a reasonable opportunity to enjoy employment and other associated
rights, benefits, privileges, and to help women and racial minorities realize in
a greater measure the goals upon which this nation and this state were
founded. All the provisions of this act shall be liberally construed to achieve
these ends, and administered and enforced with a view to carry out the above
declaration of policy." [1990 c 72 § 5; 1969 ex.s. c 183 § 1.]
Severability—1969 ex.s. c 183: "If any provision of this 1969 act, or
its application to any person or circumstance is held invalid, the remainder of
the act, or the application of the provision to other persons or circumstances
is not affected." [1969 ex.s. c 183 § 8.]
49.04.110
49.04.110 Woman and racial minority representation in apprenticeship programs—Noncompliance. When
it shall appear to the department of labor and industries that
any apprenticeship program referred to in RCW 49.04.100
has failed to comply with the woman or racial minority representation requirement hereinabove in such section referred to
by January 1, 1970, which fact shall be determined by reports
the department may request or in such other manner as it shall
see fit, then the same shall be deemed prima facie evidence of
noncompliance with RCW 49.04.100 through 49.04.130 and
thereafter no state funds or facilities shall be expended upon
such program: PROVIDED, That prior to such withdrawal of
funds evidence shall be received and state funds or facilities
shall not be denied if there is a showing of a genuine effort to
comply with the provisions of RCW 49.04.100 through
49.04.130 as to entrance of women and racial minorities into
the program. The director shall notify the appropriate federal
authorities if there is noncompliance with the woman and
racial minority representation qualification under any
apprenticeship program as provided for in RCW 49.04.100
through 49.04.130. [1990 c 72 § 2; 1969 ex.s. c 183 § 3.]
49.04.120
49.04.120 Woman and racial minority representation—Community colleges, vocational, or high schools to
enlist woman and racial minority representation in
apprenticeship programs. Every community college, vocational school, or high school carrying on a program of vocational education shall make every effort to enlist woman and
racial minority representation in the apprenticeship programs
within the state and are authorized to carry out such purpose
in such ways as they shall see fit. [1990 c 72 § 3; 1969 ex.s.
c 183 § 4.]
(2004 Ed.)
49.04.141
49.04.130
49.04.130 Woman and racial minority representation—Employer and employee organizations, apprenticeship council and committees, etc., to enlist woman and
racial minority representation in apprenticeship programs. Every employer and employee organization as well
as the apprenticeship council and local and state apprenticeship committees and vocational schools shall make every
effort to enlist woman and racial minority representation in
the apprenticeship programs of the state and shall be aided
therein by the department of labor and industries insofar as
such department may be able to so do without undue interference with its other powers and duties. In addition, the legislature, in fulfillment of the public welfare, mandates those
involved in apprenticeship training with the responsibility of
making every effort to see that woman and racial minority
representatives in such programs pursue the same to a successful conclusion. [1990 c 72 § 4; 1969 ex.s. c 183 § 5.]
49.04.141
49.04.141 Transportation opportunities—Report.
The apprenticeship council shall work with the department of
transportation, local transportation jurisdictions, local and
statewide joint apprenticeships, other apprenticeship programs, representatives of labor and business organizations
with interest and expertise in the transportation work force,
and representatives of the state's universities and community
and vocational colleges to establish technical apprenticeship
opportunities specific to the needs of transportation. The
council shall issue a report of findings and recommendations
to the transportation committees of the legislature by December 1, 2003. The report must include, but not be limited to,
findings and recommendations regarding the establishment
of transportation technical training programs within the community and vocational college system and in the state universities. [2003 c 363 § 202.]
Findings—Intent—2003 c 363 §§ 201 through 206: "(1) The legislature finds that a skilled technical work force is necessary for maintaining,
preserving, and improving Washington's transportation system. The Blue
Ribbon Commission on Transportation found that state and local transportation agencies are showing signs of a work force that is insufficiently skilled
to operate the transportation system at its highest level. Sections 201 through
206 of this act are intended to explore methods for fostering a stronger industry in transportation planning and engineering.
(2) It is the intent of the legislature that the state prevailing wage process operate efficiently, that the process allow contractors and workers to be
paid promptly, and that new technologies and innovative outreach methods
be used to enhance wage surveys in order to better reflect current wages in
counties across the state.
(3) The legislature finds that in order to enhance the prevailing wage
process it is appropriate for all intent and affidavit fees paid by contractors be
dedicated to the sole purpose of administering the state prevailing wage program.
(4) To accomplish the intent of this section and in order to enhance the
response of businesses and labor representatives to the prevailing wage survey process, the department of labor and industries shall undertake the following activities:
(a) Establish a goal of conducting surveys for each trade every three
years;
(b) Actively promote increased response rates from all survey recipients in every county both urban and rural. The department shall provide public education and technical assistance to businesses, labor representatives,
and public agencies in order to promote a better understanding of prevailing
wage laws and increased participation in the prevailing wage survey process;
(c) Actively work with businesses, labor representatives, public agencies, and others to ensure the integrity of information used in the development of prevailing wage rates, and ensure uniform compliance with requirements of sections 201 through 206 of this act;
(d) Maintain a timely processing of intents and affidavits, with a target
[Title 49 RCW—page 3]
49.04.150
Title 49 RCW: Labor Regulations
processing time no greater than seven working days from receipt of completed forms;
(e) Develop and implement electronic processing of intents and affidavits and promote the efficient and effective use of technology to improve the
services provided by the prevailing wage program." [2003 c 363 § 201.]
Part headings not law—Severability—2003 c 363: See notes following RCW 47.28.241.
49.04.150 Associate degree pathway. (1) An apprenticeship committee may recommend to its community or
technical college partner or partners that an associate degree
pathway be developed for the committee's program.
(2) In consultation with the state board for community
and technical colleges, the apprenticeship committee and the
college or colleges involved with the program shall consider
the extent apprentices in the program are likely to pursue an
associate degree and the extent a pathway could reduce
redundancy of course requirements between the apprenticeship and a degree.
(3) If the apprenticeship committee and the college or
colleges involved with the program determine that a pathway
would be beneficial for apprentices and assist them in obtaining an associate degree, the apprenticeship committee may
request that a pathway be established as provided in RCW
28B.50.890. [2003 c 128 § 2.]
49.04.150
Findings—2003 c 128: "The legislature finds that:
(1) Apprenticeships are very rigorous and highly structured programs
with specific academic and work training requirements;
(2) There is a misperception that apprenticeships are only for noncollege bound students; and
(3) The state should expand opportunities for individuals to progress
from an apprenticeship to college by creating pathways that build on the
apprenticeship experience and permit apprentices to earn an associate
degree." [2003 c 128 § 1.]
49.04.900
49.04.900 Severability—1941 c 231. If any provision
of this chapter, or the application thereof to any person or circumstances, is held invalid, the remainder of the chapter, and
the application of such provision to other persons and circumstances, shall not be affected thereby. [1941 c 231 § 8;
no RRS.]
49.04.910 Chapter not affected by certain laws
against discrimination in employment because of age.
The amendments made by chapter 100, Laws of 1961 shall
not be construed as modifying chapter 231, Laws of 1941 as
amended, or as applying to any standards established thereunder or employment pursuant to any bona fide agreements
entered into thereunder. [1961 c 100 § 6.]
49.08.040
49.08.050
49.08.060
Compensation and travel expenses of arbitrators.
Failure to arbitrate—Statement of facts—Publicity.
Tender on exhaustion of available funds.
Arbitration: Chapter 7.04 RCW.
Collective bargaining with employees of city-owned utilities: RCW
35.22.350.
Marine employees—Public employment relations: Chapter 47.64 RCW.
Supervisor of industrial relations: RCW 43.22.260.
49.08.010
49.08.010 Duty of director—Mediation—Board of
arbitration selected—Board's findings final. It shall be the
duty of the chairman of the public employment relations
commission upon application of any employer or employee
having differences, as soon as practicable, to visit the location of such differences and to make a careful inquiry into the
cause thereof and to advise the respective parties, what, if
anything, ought to be done or submitted to by both to adjust
said dispute and should said parties then still fail to agree to a
settlement through said chairman, then said chairman shall
endeavor to have said parties consent in writing to submit
their differences to a board of arbitrations to be chosen from
citizens of the state as follows, to wit: Said employer shall
appoint one and said employees acting through a majority,
one, and these two shall select a third, these three to constitute the board of arbitration and the findings of said board of
arbitration to be final. [1975 1st ex.s. c 296 § 36; 1903 c 58 §
1; RRS § 7667.]
Effective date—1975 1st ex.s. c 296: See RCW 41.58.901.
Public employment relations commission: Chapter 41.58 RCW.
49.08.020
49.08.020 Procedure for arbitration. The proceedings
of said board of arbitration shall be held before the chairman
of the public employment relations commission who shall act
as moderator or chairman, without the privilege of voting,
and who shall keep a record of the proceedings, issue subpoenas and administer oaths to the members of said board, and
any witness said board may deem necessary to summon.
[1975 1st ex.s. c 296 § 37; 1903 c 58 § 2; RRS § 7668.]
Effective date—1975 1st ex.s. c 296: See RCW 41.58.901.
49.04.910
Reviser's note: (1) Chapter 100, Laws of 1961 amended RCW
49.60.180, 49.60.190, 49.60.200 and reenacted RCW 49.60.310 to include
age as an element of discrimination, and such chapter added a new section
codified as RCW 49.44.090 relating to unfair practices in employment
because of age.
(2) Chapter 231, Laws of 1941 is the apprenticeship law codified in
chapter 49.04 RCW.
Chapter 49.08
Chapter 49.08 RCW
ARBITRATION OF DISPUTES
Sections
49.08.010
49.08.020
49.08.030
Duty of director—Mediation—Board of arbitration selected—
Board's findings final.
Procedure for arbitration.
Service of process.
[Title 49 RCW—page 4]
49.08.030 Service of process. Any notice or process
issued by the board herein created, shall be served by any
sheriff, coroner or constable to whom the same may be
directed, or in whose hands the same may be placed for service. [1903 c 58 § 3; RRS § 7669.]
49.08.030
49.08.040
49.08.040 Compensation and travel expenses of arbitrators. Such arbitrators shall receive five dollars per day for
each day actually engaged in such arbitration and travel
expenses in accordance with RCW 43.03.050 and 43.03.060
as now existing or hereafter amended to be paid upon certificates of the director of labor and industries out of the fund
appropriated for the purpose or at the disposal of the department of labor and industries applicable to such expenditure.
[1975-'76 2nd ex.s. c 34 § 144; 1903 c 58 § 4; RRS § 7670.]
Effective date—Severability—1975-'76 2nd ex.s. c 34: See notes following RCW 2.08.115.
49.08.050
49.08.050 Failure to arbitrate—Statement of facts—
Publicity. Upon the failure of the director of labor and industries, in any case, to secure the creation of a board of arbitra(2004 Ed.)
Industrial Welfare
49.12.005
49.12.320
49.12.330
49.12.350
49.12.360
49.12.370
Definitions.
Rules.
Parental leave—Legislative findings.
Parental leave—Discrimination prohibited.
Parental leave—Collective bargaining agreement or employee
benefit plan—Application.
Child labor laws—Information program.
Child labor laws—Violations—Civil penalties—Restraining
orders.
Child labor laws—Appeal.
Child labor laws—Violations—Criminal penalties.
Child labor laws—Exclusive remedies.
Compensation for required employee work apparel—Exceptions—Changes—Rules—Expiration of subsection.
Volunteer fire fighters, reserve officers—Employer duties—
Violations.
Severability—1973 2nd ex.s. c 16.
Severability—1991 c 303.
Effective date—1991 c 303 §§ 3-7.
tion, it shall become his duty to request a sworn statement
from each party to the dispute of the facts upon which their
dispute and their reasons for not submitting the same to arbitration are based. Any sworn statement made to the director
of labor and industries under this provision shall be for public
use and shall be given publicly in such newspapers as desire
to use it. [1903 c 58 § 5; RRS § 7671.]
49.08.060 Tender on exhaustion of available funds.
There is hereby appropriated out of the state treasury from
funds not otherwise appropriated the sum of three thousand
dollars, or so much thereof as may be necessary, to carry out
the provisions of this chapter. In case the funds herein provided are exhausted and either party to a proposed arbitration
shall tender the necessary expenses for conducting said arbitration, then it shall be the duty of the director of labor and
industries to request the opposite party to arbitrate such differences in accordance with the provisions of this chapter.
[1903 c 58 § 6; RRS § 7672.]
49.08.060
Chapter 49.12
Chapter 49.12 RCW
INDUSTRIAL WELFARE
Sections
49.12.005
49.12.010
49.12.020
49.12.033
49.12.041
49.12.050
49.12.091
49.12.101
49.12.105
49.12.110
49.12.121
49.12.123
49.12.124
49.12.130
49.12.140
49.12.150
49.12.170
49.12.175
49.12.180
49.12.185
49.12.187
49.12.200
49.12.240
49.12.250
49.12.260
49.12.265
49.12.270
49.12.275
49.12.280
49.12.285
49.12.287
49.12.290
49.12.295
49.12.300
49.12.310
(2004 Ed.)
Definitions.
Declaration.
Conditions of employment—Wages.
Administration and enforcement of chapter by director of
labor and industries.
Investigation of wages, hours and working conditions—Statements, inspections authorized.
Employer's record of employees.
Investigation information—Findings—Rules prescribing minimum wages, working conditions.
Hearing.
Variance order—Application—Issuance—Contents—Termination.
Exceptions to minimum scale—Special certificate or permit.
Wages and working conditions of minors—Special rules—
Work permits.
Work permit for minor required.
Actors or performers—Work permits and variances for
minors.
Witness protected—Penalty.
Complaint of noncompliance.
Civil action to recover underpayment.
Penalty.
Wage discrimination due to sex prohibited—Penalty—Civil
recovery.
Annual report.
Exemptions from chapter.
Collective bargaining rights not affected.
Women may pursue any calling open to men.
Employee inspection of personnel file.
Employee inspection of personnel file—Erroneous or disputed
information.
Employee inspection of personnel file—Limitations.
Sick leave, time off—Care of family members—Definitions.
Sick leave, time off—Care of family members.
Sick leave, time off—Care of family members—Poster
required.
Sick leave, time off—Care of family members—Administration and enforcement.
Sick leave, time off—Care of family members—Monetary
penalties.
Sick leave, time off—Care of family members—Discharge of
employee not permitted.
Sick leave, time off—Care of family members—Collective
bargaining agreement not reduced.
Sick leave, time off—Care of family members—Notification
of employers.
House-to-house sales by minor—Registration of employer.
House-to-house sales by minor—Advertising by employer—
Penalty.
49.12.380
49.12.390
49.12.400
49.12.410
49.12.420
49.12.450
49.12.460
49.12.900
49.12.901
49.12.902
Reviser's note: Throughout this chapter, the words "the committee"
have been substituted for "the industrial welfare commission" or "the commission."
The industrial welfare commission was abolished and its powers and
duties transferred to a new agency by the administrative code of 1921. In particular, 1921 c 7 § 135 abolished the commission while 1921 c 7 § 82 created
an unnamed committee "which shall have the power and it shall be its duty:
(1) To exercise all the powers and perform all the duties now vested in,
and required to be performed by, the industrial welfare commission."
1921 c 7 § 82 was codified by the 1941 Code Committee as RCW
43.22.280, wherein the Code Committee revised the wording of the session
law to designate the unnamed committee as the "industrial welfare committee." The committee was apparently commonly known by that name, but
such designation has no foundation in the statutes. RCW 43.22.280 was
repealed by 1982 c 163 § 23. Powers, duties, and functions of the industrial
welfare committee were transferred to the director of labor and industries.
See RCW 43.22.282.
Child labor: RCW 26.28.060, 26.28.070.
Food and beverage establishment workers' permits: Chapter 69.06 RCW.
Hours of labor: Chapter 49.28 RCW.
49.12.005
49.12.005 Definitions. For the purposes of this chapter:
(1) "Department" means the department of labor and
industries.
(2) "Director" means the director of the department of
labor and industries, or the director's designated representative.
(3)(a) Before May 20, 2003, "employer" means any person, firm, corporation, partnership, business trust, legal representative, or other business entity which engages in any
business, industry, profession, or activity in this state and
employs one or more employees but does not include the
state, any state institution, any state agency, political subdivision of the state, or any municipal corporation or quasimunicipal corporation. However, for the purposes of RCW
49.12.265 through 49.12.295, 49.12.350 through 49.12.370,
49.12.450, and 49.12.460 only, "employer" also includes the
state, any state institution, any state agency, political subdivisions of the state, and any municipal corporation or quasimunicipal corporation.
(b) On and after May 20, 2003, "employer" means any
person, firm, corporation, partnership, business trust, legal
representative, or other business entity which engages in any
business, industry, profession, or activity in this state and
employs one or more employees, and includes the state, any
state institution, state agency, political subdivisions of the
state, and any municipal corporation or quasi-municipal corporation. However, this chapter and the rules adopted thereunder apply to these public employers only to the extent that
this chapter and the rules adopted thereunder do not conflict
[Title 49 RCW—page 5]
49.12.010
Title 49 RCW: Labor Regulations
with: (i) Any state statute or rule; and (ii) respect to political
subdivisions of the state and any municipal or quasi-municipal corporation, any local resolution, ordinance, or rule
adopted under the authority of the local legislative authority
before April 1, 2003.
(4) "Employee" means an employee who is employed in
the business of the employee's employer whether by way of
manual labor or otherwise.
(5) "Conditions of labor" means and includes the conditions of rest and meal periods for employees including provisions for personal privacy, practices, methods and means by
or through which labor or services are performed by employees and includes bona fide physical qualifications in employment, but shall not include conditions of labor otherwise governed by statutes and rules and regulations relating to industrial safety and health administered by the department.
(6) For the purpose of chapter 16, Laws of 1973 2nd ex.
sess. a minor is defined to be a person of either sex under the
age of eighteen years. [2003 c 401 § 2; 1998 c 334 § 1; 1994
c 164 § 13; 1988 c 236 § 8; 1973 2nd ex.s. c 16 § 1.]
Findings—Purpose—Intent—Effective date—2003 c 401: See notes
following RCW 49.12.187.
Construction—1998 c 334: See note following RCW 49.12.450.
Legislative findings—Effective date—Implementation—Severability—1988 c 236: See notes following RCW 49.12.270.
49.12.010
49.12.010 Declaration. The welfare of the state of
Washington demands that all employees be protected from
conditions of labor which have a pernicious effect on their
health. The state of Washington, therefore, exercising herein
its police and sovereign power declares that inadequate
wages and unsanitary conditions of labor exert such pernicious effect. [1973 2nd ex.s. c 16 § 2; 1913 c 174 § 1; RRS §
7623.]
49.12.020
49.12.020 Conditions of employment—Wages. It
shall be unlawful to employ any person in any industry or
occupation within the state of Washington under conditions
of labor detrimental to their health; and it shall be unlawful to
employ workers in any industry within the state of Washington at wages which are not adequate for their maintenance.
[1973 2nd ex.s. c 16 § 3; 1913 c 174 § 2; RRS § 7624.]
49.12.033
49.12.033 Administration and enforcement of chapter by director of labor and industries. See RCW
43.22.270(5).
49.12.041
49.12.041 Investigation of wages, hours and working
conditions—Statements, inspections authorized. It shall
be the responsibility of the director to investigate the wages,
hours and conditions of employment of all employees,
including minors, except as may otherwise be provided in
chapter 16, Laws of 1973 2nd ex. sess. The director, or the
director's authorized representative, shall have full authority
to require statements from all employers, relative to wages,
hours and working conditions and to inspect the books,
records and physical facilities of all employers subject to
chapter 16, Laws of 1973 2nd ex. sess. Such examinations
shall take place within normal working hours, within reason[Title 49 RCW—page 6]
able limits and in a reasonable manner. [1994 c 164 § 14;
1973 2nd ex.s. c 16 § 5.]
49.12.050
49.12.050 Employer's record of employees. Every
employer shall keep a record of the names of all employees
employed by him, and shall on request permit the director to
inspect such record. [1994 c 164 § 15; 1973 2nd ex.s. c 16 §
14; 1913 c 174 § 7; RRS § 7626.]
49.12.091
49.12.091 Investigation information—Findings—
Rules prescribing minimum wages, working conditions.
After an investigation has been conducted by the department
of wages, hours and conditions of labor subject to chapter 16,
Laws of 1973 2nd ex. sess., the director shall be furnished
with all information relative to such investigation of wages,
hours and working conditions, including current statistics on
wage rates in all occupations subject to the provisions of
chapter 16, Laws of 1973 2nd ex. sess. Within a reasonable
time thereafter, if the director finds that in any occupation,
trade or industry, subject to chapter 16, Laws of 1973 2nd ex.
sess., the wages paid to employees are inadequate to supply
the necessary cost of living, but not to exceed the state minimum wage as prescribed in RCW 49.46.020, as now or hereafter amended, or that the conditions of labor are detrimental
to the health of employees, the director shall have authority to
prescribe rules and regulations for the purpose of adopting
minimum wages for occupations not otherwise governed by
minimum wage requirements fixed by state or federal statute,
or a rule or regulation adopted under such statute, and, at the
same time have the authority to prescribe rules and regulations fixing standards, conditions and hours of labor for the
protection of the safety, health and welfare of employees for
all or specified occupations subject to chapter 16, Laws of
1973 2nd ex. sess. Thereafter, the director shall conduct a
public hearing in accordance with the procedures of the
administrative procedure act, chapter 34.05 RCW, for the
purpose of the adoption of rules and regulations fixing minimum wages and standards, conditions and hours of labor subject to the provisions of chapter 16, Laws of 1973 2nd ex.
sess. After such rules become effective, copies thereof shall
be supplied to employers who may be affected by such rules
and such employers shall post such rules, where possible, in
such place or places, reasonably accessible to all employees
of such employer. After the effective date of such rules, it
shall be unlawful for any employer in any occupation subject
to chapter 16, Laws of 1973 2nd ex. sess. to employ any person for less than the rate of wages specified in such rules or
under conditions and hours of labor prohibited for any occupation specified in such rules: PROVIDED, That this section
shall not apply to sheltered workshops. [1994 c 164 § 16;
1973 2nd ex.s. c 16 § 6.]
49.12.101
49.12.101 Hearing. Whenever wages, standards, conditions and hours of labor have been established by rule and
regulation of the director, the director may upon application
of either employers or employees conduct a public hearing
for the purpose of the adoption, amendment or repeal of rules
and regulations adopted under the authority of chapter 16,
Laws of 1973 2nd ex. sess. [1994 c 164 § 17; 1973 2nd ex.s.
c 16 § 7.]
(2004 Ed.)
Industrial Welfare
49.12.105
49.12.105 Variance order—Application—Issuance—
Contents—Termination. An employer may apply to the
director for an order for a variance from any rule or regulation establishing a standard for wages, hours, or conditions of
labor adopted by the director under this chapter. The director
shall issue an order granting a variance if the director determines or decides that the applicant for the variance has shown
good cause for the lack of compliance. Any order so issued
shall prescribe the conditions the employer must maintain,
and the practices, means, methods, operations, standards and
processes which the employer must adopt and utilize to the
extent they differ from the standard in question. At any time
the director may terminate and revoke such order, provided
the employer was notified by the director of the termination
at least thirty days prior to said termination. [1994 c 164 §
18; 1973 2nd ex.s. c 16 § 8.]
49.12.110
49.12.110 Exceptions to minimum scale—Special
certificate or permit. For any occupation in which a minimum wage has been established, the director may issue to an
employer, a special certificate or permit for an employee who
is physically or mentally handicapped to such a degree that he
or she is unable to obtain employment in the competitive
labor market, or to a trainee or learner not otherwise subject
to the jurisdiction of the apprenticeship council, a special certificate or permit authorizing the employment of such
employee for a wage less than the legal minimum wage; and
the director shall fix the minimum wage for said person, such
special certificate or permit to be issued only in such cases as
the director may decide the same is applied for in good faith
and that such certificate or permit shall be in force for such
length of time as the director shall decide and determine is
proper. [1994 c 164 § 19; 1977 ex.s. c 80 § 35; 1973 2nd ex.s.
c 16 § 13; 1913 c 174 § 13; RRS § 7632.]
Purpose—Intent—Severability—1977 ex.s. c 80: See notes following RCW 4.16.190.
49.12.121
49.12.121 Wages and working conditions of
minors—Special rules—Work permits. (1) The department may at any time inquire into wages, hours, and conditions of labor of minors employed in any trade, business, or
occupation in the state of Washington and may adopt special
rules for the protection of the safety, health, and welfare of
minor employees. However, the rules may not limit the hours
per day or per week, or other specified work period, that may
be worked by minors who are emancipated by court order.
(2) The department shall issue work permits to employers for the employment of minors, after being assured the
proposed employment of a minor meets the standards for the
health, safety, and welfare of minors as set forth in the rules
adopted by the department. No minor person shall be
employed in any occupation, trade, or industry subject to
chapter 16, Laws of 1973 2nd ex. sess., unless a work permit
has been properly issued, with the consent of the parent,
guardian, or other person having legal custody of the minor
and with the approval of the school which such minor may
then be attending. However, the consent of a parent, guardian, or other person, or the approval of the school which the
minor may then be attending, is unnecessary if the minor is
emancipated by court order.
(2004 Ed.)
49.12.150
(3) The minimum wage for minors shall be as prescribed
in RCW 49.46.020. [1993 c 294 § 9; 1989 c 1 § 3 (Initiative
Measure No. 518, approved November 8, 1988); 1973 2nd
ex.s. c 16 § 15.]
Effective date—1993 c 294: See RCW 13.64.900.
Effective date—1989 c 1 (Initiative Measure No. 518): See note following RCW 49.46.010.
49.12.123
49.12.123 Work permit for minor required. In implementing state policy to assure the attendance of children in
the public schools it shall be required of any person, firm or
corporation employing any minor under the age of eighteen
years to obtain a work permit as set forth in RCW 49.12.121
and keep such permit on file during the employment of such
minor, and upon termination of such employment of such
minor to return such permit to the department of labor and
industries. [1991 c 303 § 8; 1983 c 3 § 156; 1973 c 51 § 3.]
Severability—1973 c 51: See note following RCW 28A.225.010.
49.12.124
49.12.124 Actors or performers—Work permits and
variances for minors. For all minors employed as actors or
performers in film, video, audio, or theatrical productions,
the department shall issue a permit under RCW 49.12.121
and a variance under RCW 49.12.105 upon finding that the
terms of the employment sufficiently protect the minor's
health, safety, and welfare. The findings shall be based on
information provided to the department including, but not
limited to, the minor's working conditions and planned work
schedule, adult supervision of the minor, and any planned
educational programs. [1994 c 62 § 2.]
49.12.130
49.12.130 Witness protected—Penalty. Any
employer who discharges, or in any other manner discriminates against any employee because such employee has testified or is about to testify, or because such employer believes
that said employee may testify in any investigation or proceedings relative to the enforcement of RCW 49.12.010
through 49.12.180, shall be deemed guilty of a misdemeanor
and upon conviction thereof, shall be punished by a fine of
from twenty-five dollars to one hundred dollars for each such
misdemeanor. [1913 c 174 § 16; RRS § 7635.]
49.12.140
49.12.140 Complaint of noncompliance. Any worker
or the parent or guardian of any minor to whom RCW
49.12.010 through 49.12.180 applies may complain to the
director that the wages paid to the workers are less than the
minimum rate and the director shall investigate the same and
proceed under RCW 49.12.010 through 49.12.180 in behalf
of the worker. [1994 c 164 § 20; 1913 c 174 § 17 1/2; RRS §
7637.]
49.12.150
49.12.150 Civil action to recover underpayment. If
any employee shall receive less than the legal minimum
wage, except as hereinbefore provided in RCW 49.12.110,
said employee shall be entitled to recover in a civil action the
full amount of the legal minimum wage as herein provided
for, together with costs and attorney's fees to be fixed by the
court, notwithstanding any agreement to work for such lesser
wage. In such action, however, the employer shall be credited
[Title 49 RCW—page 7]
49.12.170
Title 49 RCW: Labor Regulations
with any wages which have been paid upon account. [1913 c
174 § 18; RRS § 7638.]
49.12.170
49.12.170 Penalty. Except as otherwise provided in
RCW 49.12.390 or 49.12.410, any employer employing any
person for whom a minimum wage or standards, conditions,
and hours of labor have been specified, at less than said minimum wage, or under standards, or conditions of labor or at
hours of labor prohibited by the rules and regulations of the
director; or violating any other of the provisions of chapter
16, Laws of 1973 2nd ex. sess., shall be deemed guilty of a
misdemeanor, and shall, upon conviction thereof, be punished by a fine of not less than twenty-five dollars nor more
than one thousand dollars. [1994 c 164 § 21; 1991 c 303 § 6;
1973 2nd ex.s. c 16 § 16; 1913 c 174 § 17; RRS § 7636.]
Witnesses protected—Penalty: RCW 49.12.130.
49.12.175
49.12.175 Wage discrimination due to sex prohibited—Penalty—Civil recovery. Any employer in this state,
employing both males and females, who shall discriminate in
any way in the payment of wages as between sexes or who
shall pay any female a less wage, be it time or piece work, or
salary, than is being paid to males similarly employed, or in
any employment formerly performed by males, shall be
guilty of a misdemeanor. If any female employee shall
receive less compensation because of being discriminated
against on account of her sex, and in violation of this section,
she shall be entitled to recover in a civil action the full
amount of compensation that she would have received had
she not been discriminated against. In such action, however,
the employer shall be credited with any compensation which
has been paid to her upon account. A differential in wages
between employees based in good faith on a factor or factors
other than sex shall not constitute discrimination within the
meaning of RCW 49.12.010 through 49.12.180. [1943 c 254
§ 1; Rem. Supp. 1943 § 7636-1. Formerly RCW 49.12.210.]
49.12.180
49.12.180 Annual report. The director shall report
annually to the governor on its investigations and proceedings. [1994 c 164 § 22; 1977 c 75 § 73; 1913 c 174 § 20; RRS
§ 7640.]
49.12.185
49.12.185 Exemptions from chapter. Chapter 16,
Laws of 1973 2nd ex. sess. shall not apply to newspaper vendors or carriers and domestic or casual labor in or about private residences and agricultural labor as defined in RCW
50.04.150, as now or hereafter amended. [1973 2nd ex.s. c
16 § 17.]
49.12.187
49.12.187 Collective bargaining rights not affected.
This chapter shall not be construed to interfere with, impede,
or in any way diminish the right of employees to bargain collectively with their employers through representatives of
their own choosing concerning wages or standards or conditions of employment. However, rules adopted under this
chapter regarding appropriate rest and meal periods as
applied to employees in the construction trades may be superseded by a collective bargaining agreement negotiated under
the national labor relations act, 29 U.S.C. Sec. 151 et seq., if
the terms of the collective bargaining agreement covering
[Title 49 RCW—page 8]
such employees specifically require rest and meal periods
and prescribe requirements concerning those rest and meal
periods.
Employees of public employers may enter into collective
bargaining contracts, labor/management agreements, or other
mutually agreed to employment agreements that specifically
vary from or supersede, in part or in total, rules adopted under
this chapter regarding appropriate rest and meal periods.
[2003 c 401 § 3; 2003 c 146 § 1; 1973 2nd ex.s. c 16 § 18.]
Reviser's note: This section was amended by 2003 c 146 § 1 and by
2003 c 401 § 3, each without reference to the other. Both amendments are
incorporated in the publication of this section under RCW 1.12.025(2). For
rule of construction, see RCW 1.12.025(1).
Findings—Purpose—Intent—2003 c 401: "The legislature finds that
the enactment of chapter 236, Laws of 1988 amended the definition of
employer under the industrial welfare act, chapter 49.12 RCW, to ensure that
the family care provisions of that act applied to the state and political subdivisions. The legislature further finds that this amendment of the definition of
employer may be interpreted as creating an ambiguity as to whether the other
provisions of chapter 49.12 RCW have applied to the state and its political
subdivisions. The purpose of this act is to make retroactive, remedial, curative, and technical amendments to clarify the intent of chapter 49.12 RCW
and chapter 236, Laws of 1988 and resolve any ambiguity. It is the intent of
the legislature to establish that, prior to May 20, 2003, chapter 49.12 RCW
and the rules adopted thereunder did not apply to the state or its agencies and
political subdivisions except as expressly provided for in RCW 49.12.265
through 49.12.295, 49.12.350 through 49.12.370, 49.12.450, and
49.12.460." [2003 c 401 § 1.]
Effective date—2003 c 401: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[May 20, 2003]." [2003 c 401 § 6.]
49.12.200
49.12.200 Women may pursue any calling open to
men. That hereafter in this state every avenue of employment shall be open to women; and any business, vocation,
profession and calling followed and pursued by men may be
followed and pursued by women, and no person shall be disqualified from engaging in or pursuing any business, vocation, profession, calling or employment or excluded from any
premises or place of work or employment on account of sex.
[1963 c 229 § 1; 1890 p 519 § 1; RRS § 7620.]
Qualifications of electors: State Constitution Art. 6 § 1 (Amendment 63).
Sex equality—Rights and responsibility: State Constitution Art. 31 §§ 1, 2
(Amendment 61).
49.12.240
49.12.240 Employee inspection of personnel file.
Every employer shall, at least annually, upon the request of
an employee, permit that employee to inspect any or all of his
or her own personnel file(s). [1985 c 336 § 1.]
Destruction or retention of information relating to state employee misconduct: RCW 41.06.450 through 41.06.460.
49.12.250
49.12.250 Employee inspection of personnel file—
Erroneous or disputed information. (1) Each employer
shall make such file(s) available locally within a reasonable
period of time after the employee requests the file(s).
(2) An employee annually may petition that the
employer review all information in the employee's personnel
file(s) that are regularly maintained by the employer as a part
of his business records or are subject to reference for information given to persons outside of the company. The
employer shall determine if there is any irrelevant or erroneous information in the file(s), and shall remove all such infor(2004 Ed.)
Industrial Welfare
mation from the file(s). If an employee does not agree with
the employer's determination, the employee may at his or her
request have placed in the employee's personnel file a statement containing the employee's rebuttal or correction. Nothing in this subsection prevents the employer from removing
information more frequently.
(3) A former employee shall retain the right of rebuttal or
correction for a period not to exceed two years. [1985 c 336
§ 2.]
49.12.260
49.12.260 Employee inspection of personnel file—
Limitations. RCW 49.12.240 and 49.12.250 do not apply to
the records of an employee relating to the investigation of a
possible criminal offense. RCW 49.12.240 and 49.12.250 do
not apply to information or records compiled in preparation
for an impending lawsuit which would not be available to
another party under the rules of pretrial discovery for causes
pending in the superior courts. [1985 c 336 § 3.]
49.12.265
49.12.265 Sick leave, time off—Care of family members—Definitions. The definitions in this section apply
throughout RCW 49.12.270 through 49.12.295 unless the
context clearly requires otherwise.
(1) "Child" means a biological, adopted, or foster child,
a stepchild, a legal ward, or a child of a person standing in
loco parentis who is: (a) Under eighteen years of age; or (b)
eighteen years of age or older and incapable of self-care
because of a mental or physical disability.
(2) "Grandparent" means a parent of a parent of an
employee.
(3) "Parent" means a biological parent of an employee or
an individual who stood in loco parentis to an employee when
the employee was a child.
(4) "Parent-in-law" means a parent of the spouse of an
employee.
(5) "Sick leave or other paid time off" means time
allowed under the terms of an appropriate collective bargaining agreement or employer policy, as applicable, to an
employee for illness, vacation, and personal holiday.
(6) "Spouse" means a husband or wife, as the case may
be. [2002 c 243 § 2.]
Effective date—2002 c 243: "This act takes effect January 1, 2003."
[2002 c 243 § 4.]
49.12.285
(2) Use of leave other than sick leave or other paid time
off to care for a child, spouse, parent, parent-in-law, or grandparent under the circumstances described in this section shall
be governed by the terms of the appropriate collective bargaining agreement or employer policy, as applicable. [2002
c 243 § 1; 1988 c 236 § 3.]
Effective date—2002 c 243: See note following RCW 49.12.265.
Legislative findings—1988 c 236: "The legislature recognizes the
changing nature of the work force brought about by increasing numbers of
working mothers, single parent households, and dual career families. The
legislature finds that the needs of families must be balanced with the
demands of the workplace to promote family stability and economic security. The legislature further finds that it is in the public interest for employers
to accommodate employees by providing reasonable leaves from work for
family reasons. In order to promote family stability, economic security, and
the public interest, the legislature hereby establishes a minimum standard for
family care. Nothing contained in this act shall prohibit any employer from
establishing family care standards more generous than the minimum standards set forth in this act." [1988 c 236 § 1.]
Effective date—1988 c 236: "This act shall take effect on September 1,
1988." [1988 c 236 § 12.]
Implementation—1988 c 236: "Prior to September 1, 1988, the department of labor and industries may take such steps as are necessary to ensure
that chapter 236, Laws of 1988 is implemented on September 1, 1988."
[1988 c 236 § 10.]
Severability—1988 c 236: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1988 c 236 § 11.]
49.12.275
49.12.275 Sick leave, time off—Care of family members—Poster required. The department shall develop and
furnish to each employer a poster which describes an
employer's obligations and an employee's rights under RCW
49.12.270 through 49.12.295. The poster must include notice
about any state law, rule, or regulation governing maternity
disability leave and indicate that federal or local ordinances,
laws, rules, or regulations may also apply. The poster must
also include a telephone number and an address of the department to enable employees to obtain more information regarding RCW 49.12.270 through 49.12.295. Each employer must
display this poster in a conspicuous place. Every employer
shall also post its leave policies, if any, in a conspicuous
place. Nothing in this section shall be construed to create a
right to continued employment. [1988 c 236 § 2.]
Legislative findings—Effective date—Implementation—Severability—1988 c 236: See notes following RCW 49.12.270.
49.12.280
49.12.270
49.12.270 Sick leave, time off—Care of family members. (1) If, under the terms of a collective bargaining agreement or employer policy applicable to an employee, the
employee is entitled to sick leave or other paid time off, then
an employer shall allow an employee to use any or all of the
employee's choice of sick leave or other paid time off to care
for: (a) A child of the employee with a health condition that
requires treatment or supervision; or (b) a spouse, parent, parent-in-law, or grandparent of the employee who has a serious
health condition or an emergency condition. An employee
may not take advance leave until it has been earned. The
employee taking leave under the circumstances described in
this section must comply with the terms of the collective bargaining agreement or employer policy applicable to the leave,
except for any terms relating to the choice of leave.
(2004 Ed.)
49.12.280 Sick leave, time off—Care of family members—Administration and enforcement. The department
shall administer and investigate violations of RCW 49.12.270
and 49.12.275. [1988 c 236 § 4.]
Legislative findings—Effective date—Implementation—Severability—1988 c 236: See notes following RCW 49.12.270.
49.12.285
49.12.285 Sick leave, time off—Care of family members—Monetary penalties. The department may issue a
notice of infraction if the department reasonably believes that
an employer has failed to comply with RCW 49.12.270 or
49.12.275. The form of the notice of infraction shall be
adopted by rule pursuant to chapter 34.05 RCW. An
employer who is found to have committed an infraction
under RCW 49.12.270 or 49.12.275 may be assessed a monetary penalty not to exceed two hundred dollars for each vio[Title 49 RCW—page 9]
49.12.287
Title 49 RCW: Labor Regulations
lation. An employer who repeatedly violates RCW 49.12.270
or 49.12.275 may be assessed a monetary penalty not to
exceed one thousand dollars for each violation. For purposes
of this section, the failure to comply with RCW 49.12.275 as
to an employee or the failure to comply with RCW 49.12.270
as to a period of leave sought by an employee shall each constitute separate violations. An employer has twenty days to
appeal the notice of infraction. Any appeal of a violation
determined to be an infraction shall be heard and determined
by an administrative law judge. Monetary penalties collected
under this section shall be deposited into the general fund.
[1988 c 236 § 5.]
Legislative findings—Effective date—Implementation—Severability—1988 c 236: See notes following RCW 49.12.270.
49.12.287
49.12.287 Sick leave, time off—Care of family members—Discharge of employee not permitted. An employer
shall not discharge, threaten to discharge, demote, suspend,
discipline, or otherwise discriminate against an employee
because the employee: (1) Has exercised, or attempted to
exercise, any right provided under RCW 49.12.270 through
49.12.295; or (2) has filed a complaint, testified, or assisted in
any proceeding under RCW 49.12.270 through 49.12.295.
[2002 c 243 § 3.]
Effective date—2002 c 243: See note following RCW 49.12.265.
49.12.290
49.12.290 Sick leave, time off—Care of family members—Collective bargaining agreement not reduced.
Nothing in RCW 49.12.270 through 49.12.295 shall be construed to reduce any provision in a collective bargaining
agreement. [1988 c 236 § 6.]
Legislative findings—Effective date—Implementation—Severability—1988 c 236: See notes following RCW 49.12.270.
49.12.295
49.12.295 Sick leave, time off—Care of family members—Notification of employers. The department shall
notify all employers of the provisions of RCW 49.12.270
through 49.12.290. [1988 c 236 § 7.]
Legislative findings—Effective date—Implementation—Severability—1988 c 236: See notes following RCW 49.12.270.
49.12.300
49.12.300 House-to-house sales by minor—Registration of employer. (1) No person under sixteen years of age
may be employed in house-to-house sales unless the department grants a variance permitting specific employment under
criteria adopted by department rule.
(2) No person sixteen or seventeen years of age may be
employed in house-to-house sales unless the employer:
(a) Obtains and maintains a validated registration certificate issued by the department. Application for registration
shall be made on a form prescribed by the director, which
shall include but not be limited to:
(i) The employer's name, permanent address, and telephone number;
(ii) The employer's social security number and industrial
insurance number or, in lieu of these numbers, the employer's
unified business identifier account number; and
(iii) A description of the work to be performed by persons aged sixteen or seventeen and the working conditions
under which the work will be performed;
[Title 49 RCW—page 10]
(b) Provides each employee sixteen or seventeen years of
age, before beginning work, an identification card in a form
prescribed by the director. The card shall include, but not be
limited to, a picture of the employee, the employee's name,
the name and address of the employer, a statement that the
employer is registered with the department of labor and
industries, and the registration number. The person employed
in house-to-house sales shall show the identification card to
each customer or potential customer of the person;
(c) Ensures supervision by a person aged twenty-one
years or over during all working hours, with each supervisor
responsible for no more than five persons; and
(d) If transporting an employee sixteen or seventeen
years of age to another state, obtains the express written consent of the employee's parent or legal guardian.
(3) An employer may not employ a person sixteen or
seventeen years of age in house-to-house sales after the hour
of nine p.m.
(4) The department shall adopt by rule procedures for the
renewal, denial, or revocation of registrations required by this
section. [1989 c 216 § 1.]
49.12.310
49.12.310 House-to-house sales by minor—Advertising by employer—Penalty. (1) Any person advertising to
employ a person in house-to-house sales with an advertisement specifically prescribing a minimum age requirement
that is under the age of twenty-one shall:
(a) Register with the department as provided in RCW
49.12.300(2)(a); and
(b) Include the following information in any advertisement:
(i) The registration number required by subsection (1)(a)
of this section;
(ii) The specific nature of the employment and the product or services to be sold; and
(iii) The average monthly compensation paid in the previous six months to new employees, taking into account any
deductions made pursuant to the employment contract.
(2) Advertising to recruit or employ a person in houseto-house sales shall not be false, misleading, or deceptive.
(3) A violation of this section is an unfair act or practice
in violation of the consumer protection act, chapter 19.86
RCW. The remedies and sanctions provided under chapter
19.86 RCW shall not preclude application of other available
remedies and sanctions.
(4) No publisher, radio broadcast licensee, advertising
agency, or agency or medium for the dissemination of an
advertisement may be subject to penalties by reason of dissemination of any false, misleading, or deceptive advertisement, or for an advertisement that fails to meet the requirements of subsection (1) of this section, unless he or she has
refused on the request of the director to furnish the name and
address of the person purchasing the advertising. [1989 c 216
§ 2.]
49.12.320
49.12.320 Definitions. For the purposes of RCW
49.12.300 and 49.12.310:
(1) "Employ" includes to engage, suffer, or permit to
work, but does not include voluntary or donated services performed for no compensation, or without expectation or con(2004 Ed.)
Industrial Welfare
templation of compensation as the adequate consideration for
the services performed, for an educational, charitable, religious, state or local government body or agency, or nonprofit
organization, or services performed by a newspaper vendor
or a person in the employ of his or her parent or stepparent.
(2) "House-to-house sales" includes a sale or other transaction in consumer goods, the demonstration of products or
equipment, the obtaining of orders for consumer goods, or
the obtaining of contracts for services, in which the employee
personally solicits the sale or transaction at a place other than
the place of business of the employer. [1989 c 216 § 3.]
49.12.330
49.12.330 Rules. The department shall adopt rules to
implement RCW 49.12.300 through 49.12.320. [1989 c 216
§ 4.]
49.12.390
Findings—Purpose—Intent—Effective date—2003 c 401: See notes
following RCW 49.12.187.
Severability—Effective date—1989 1st ex.s. c 11: See RCW
49.78.900 and 49.78.901.
49.12.370
49.12.370 Parental leave—Collective bargaining
agreement or employee benefit plan—Application. In the
case of employees covered by an unexpired collective bargaining agreement that expires on or after September 1, 1989,
or by an employee benefit program or plan with a stated year
ending on or after September 1, 1989, the effective date of
RCW 49.12.360 shall be the later of: (1) The first day following expiration of the collective bargaining agreement; or (2)
the first day of the next plan year. [1989 1st ex.s. c 11 § 24.]
Severability—Effective date—1989 1st ex.s. c 11: See RCW
49.78.900 and 49.78.901.
49.12.350
49.12.350 Parental leave—Legislative findings. The
legislature finds that employers often distinguish between
biological parents, and adoptive parents and stepparents in
their employee leave policies. Many employers who grant
leave to their employees to care for a newborn child either
have no policy or establish a more restrictive policy regarding whether an adoptive parent or stepparent can take similar
leave. The legislature further finds that many employers
establish different leave policies for men and women regarding the care of a newborn or newly placed child. The legislature recognizes that the bonding that occurs between a parent
and child is important to the nurturing of that child, regardless of whether the parent is the child's biological parent and
regardless of the gender of the parent. For these reasons, the
legislature declares that it is the public policy of this state to
require that employers who grant leave to their employees to
care for a newborn child make the same leave available upon
the same terms for adoptive parents and stepparents, men and
women. [1989 1st ex.s. c 11 § 22.]
Severability—Effective date—1989 1st ex.s. c 11: See RCW
49.78.900 and 49.78.901.
49.12.360
49.12.360 Parental leave—Discrimination prohibited. (1) An employer must grant an adoptive parent or a
stepparent, at the time of birth or initial placement for adoption of a child under the age of six, the same leave under the
same terms as the employer grants to biological parents. As
a term of leave, an employer may restrict leave to those living
with the child at the time of birth or initial placement.
(2) An employer must grant the same leave upon the
same terms for men as it does for women.
(3) The department shall administer and investigate violations of this section. Notices of infraction, penalties, and
appeals shall be administered in the same manner as violations under RCW 49.12.285.
(4) For purposes of this section, "leave" means any leave
from employment granted to care for a newborn or a newly
adopted child at the time of placement for adoption.
(5) Nothing in this section requires an employer to:
(a) Grant leave equivalent to maternity disability leave;
or
(b) Establish a leave policy to care for a newborn or
newly placed child if no such leave policy is in place for any
of its employees. [2003 c 401 § 4; 1989 1st ex.s. c 11 § 23.]
(2004 Ed.)
49.12.380
49.12.380 Child labor laws—Information program.
Upon adoption of the rules under *section 1 of this act, the
department of labor and industries shall implement a comprehensive program to inform employers of the rules adopted.
The program shall include mailings, public service
announcements, seminars, and any other means deemed
appropriate to inform all Washington employers of their
rights and responsibilities regarding the employment of
minors. [1991 c 303 § 2.]
*Reviser's note: Section 1 of this act, which amended RCW 49.12.121,
was vetoed by the governor.
49.12.390
49.12.390 Child labor laws—Violations—Civil penalties—Restraining orders. (1)(a) Except as otherwise provided in subsection (2) of this section, if the director, or the
director's designee, finds that an employer has violated any of
the requirements of RCW 49.12.121 or 49.12.123, or a rule or
order adopted or variance granted under RCW 49.12.121 or
49.12.123, a citation stating the violations shall be issued to
the employer. The citation shall be in writing, describing the
nature of the violation including reference to the standards,
rules, or orders alleged to have been violated. An initial citation for failure to comply with RCW 49.12.123 or rules
requiring a minor work permit and maintenance of records
shall state a specific and reasonable time for abatement of the
violation to allow the employer to correct the violation without penalty. The director or the director's designee may establish a specific time for abatement of other nonserious violations in lieu of a penalty for first time violations. The citation
and a proposed penalty assessment shall be given to the highest management official available at the workplace or be
mailed to the employer at the workplace. In addition, the
department shall mail a copy of the citation and proposed
penalty assessment to the central personnel office of the
employer. Citations issued under this section shall be posted
at or near the place where the violation occurred.
(b) Except when an employer corrects a violation as provided in (a) of this subsection, he or she shall be assessed a
civil penalty of not more than one thousand dollars depending on the size of the business and the gravity of the violation.
The employer shall pay the amount assessed within thirty
days of receipt of the assessment or notify the director of his
or her intent to appeal the citation or the assessment penalty
as provided in RCW 49.12.400.
[Title 49 RCW—page 11]
49.12.400
Title 49 RCW: Labor Regulations
(2) If the director, or the director's designee, finds that an
employer has committed a serious or repeated violation of the
requirements of RCW 49.12.121 or 49.12.123, or any rule or
order adopted or variance granted under RCW 49.12.121 or
49.12.123, the employer is subject to a civil penalty of not
more than one thousand dollars for each day the violation
continues. For the purposes of this subsection, a serious violation shall be deemed to exist if death or serious physical
harm has resulted or is imminent from a condition that exists,
or from one or more practices, means, methods, operations,
or processes that have been adopted or are in use by the
employer, unless the employer did not, and could not with the
exercise of reasonable diligence, know of the presence of the
violation.
(3) In addition to any other authority provided in this
section, if, upon inspection or investigation, the director, or
director's designee, believes that an employer has violated
RCW 49.12.121 or 49.12.123, or a rule or order adopted or
variance granted under RCW 49.12.121 or 49.12.123, and
that the violation creates a danger from which there is a substantial probability that death or serious physical harm could
result to a minor employee, the director, or director's designee, may issue an order immediately restraining the condition, practice, method, process, or means creating the danger
in the workplace. An order issued under this subsection may
require the employer to take steps necessary to avoid, correct,
or remove the danger and to prohibit the employment or presence of a minor in locations or under conditions where the
danger exists.
(4) An employer who violates any of the posting requirements of RCW 49.12.121 or rules adopted implementing
RCW 49.12.121 shall be assessed a civil penalty of not more
than one hundred dollars for each violation.
(5) A person who gives advance notice, without the
authority of the director, of an inspection to be conducted
under this chapter shall be assessed a civil penalty of not
more than one thousand dollars.
(6) Penalties assessed under this section shall be paid to
the director and deposited into the general fund. [1991 c 303
§ 3.]
49.12.400
49.12.400 Child labor laws—Appeal. A person, firm,
or corporation aggrieved by an action taken or decision made
by the department under RCW 49.12.390 may appeal the
action or decision to the director by filing notice of the appeal
with the director within thirty days of the department's action
or decision. A notice of appeal filed under this section shall
stay the effectiveness of a citation or notice of the assessment
of a penalty pending review of the appeal by the director, but
such appeal shall not stay the effectiveness of an order of
immediate restraint issued under RCW 49.12.390. Upon
receipt of an appeal, a hearing shall be held in accordance
with chapter 34.05 RCW. The director shall issue all final
orders after the hearing. The final orders are subject to appeal
in accordance with chapter 34.05 RCW. Orders not appealed
within the time period specified in chapter 34.05 RCW are
final and binding. [1991 c 303 § 4.]
49.12.410
49.12.410 Child labor laws—Violations—Criminal
penalties. (1) An employer who knowingly or recklessly
[Title 49 RCW—page 12]
violates the requirements of RCW 49.12.121 or 49.12.123, or
a rule or order adopted under RCW 49.12.121 or 49.12.123,
is guilty of a gross misdemeanor.
(2) An employer whose practices in violation of the
requirements of RCW 49.12.121 or 49.12.123, or a rule or
order adopted under RCW 49.12.121 or 49.12.123, result in
the death or permanent disability of a minor employee is
guilty of a class C felony punishable according to chapter
9A.20 RCW. [2003 c 53 § 273; 1991 c 303 § 5.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
49.12.420
49.12.420 Child labor laws—Exclusive remedies.
The penalties established in RCW 49.12.390 and 49.12.410
for violations of RCW 49.12.121 and 49.12.123 are exclusive
remedies. [1991 c 303 § 7.]
49.12.450
49.12.450 Compensation for required employee
work apparel—Exceptions—Changes—Rules—Expiration of subsection. (1) Notwithstanding the provisions of
chapter 49.46 RCW or other provisions of this chapter, the
obligation of an employer to furnish or compensate an
employee for apparel required during work hours shall be
determined only under this section.
(2) Employers are not required to furnish or compensate
employees for apparel that an employer requires an employee
to wear during working hours unless the required apparel is a
uniform.
(3) As used in this section, "uniform" means:
(a) Apparel of a distinctive style and quality that, when
worn outside of the workplace, clearly identifies the person
as an employee of a specific employer;
(b) Apparel that is specially marked with an employer's
logo;
(c) Unique apparel representing an historical time period
or an ethnic tradition; or
(d) Formal apparel.
(4) Except as provided in subsection (5) of this section, if
an employer requires an employee to wear apparel of a common color that conforms to a general dress code or style, the
employer is not required to furnish or compensate an
employee for that apparel. For the purposes of this subsection, "common color" is limited to the following colors or
light or dark variations of such colors: White, tan, or blue, for
tops; and tan, black, blue, or gray, for bottoms. An employer
is permitted to require an employee to obtain two sets of
wearing apparel to accommodate for the seasonal changes in
weather which necessitate a change in wearing apparel.
(5) If an employer changes the color or colors of apparel
required to be worn by any of his or her employees during a
two-year period of time, the employer shall furnish or compensate the employees for the apparel. The employer shall be
required to furnish or compensate only those employees who
are affected by the change. The two-year time period begins
on the date the change in wearing apparel goes into effect and
ends two years from this date. The beginning and end of the
two-year time period applies to all employees regardless of
when the employee is hired.
(6) The department shall utilize negotiated rule making
as defined by RCW 34.05.310(2)(a) in the development and
(2004 Ed.)
Washington Industrial Safety and Health Act
adoption of rules defining apparel that conforms to a general
dress code or style. This subsection expires January 1, 2000.
(7) For the purposes of this section, personal protective
equipment required for employee protection under chapter
49.17 RCW is not deemed to be employee wearing apparel.
[1998 c 334 § 2.]
Construction—1998 c 334: "Nothing in this act shall be construed to
alter the terms, conditions, or practices contained in any collective bargaining agreement in effect at the time of June 11, 1998, until the expiration date
of such agreement." [1998 c 334 § 3.]
49.12.460
49.12.460 Volunteer fire fighters, reserve officers—
Employer duties—Violations. (1) An employer may not
discharge from employment or discipline a volunteer fire
fighter or reserve officer because of leave taken related to an
alarm of fire or an emergency call.
(2)(a) A volunteer fire fighter or reserve officer who
believes he or she was discharged or disciplined in violation
of this section may file a complaint alleging the violation
with the director. The volunteer fire fighter or reserve officer
may allege a violation only by filing such a complaint within
ninety days of the alleged violation.
(b) Upon receipt of the complaint, the director must
cause an investigation to be made as the director deems
appropriate and must determine whether this section has been
violated. Notice of the director's determination must be sent
to the complainant and the employer within ninety days of
receipt of the complaint.
(c) If the director determines that this section was violated and the employer fails to reinstate the employee or withdraw the disciplinary action taken against the employee,
whichever is applicable, within thirty days of receipt of
notice of the director's determination, the volunteer fire
fighter or reserve officer may bring an action against the
employer alleging a violation of this section and seeking reinstatement or withdrawal of the disciplinary action.
(d) In any action brought under this section, the superior
court shall have jurisdiction, for cause shown, to restrain violations under this section and to order reinstatement of the
employee or withdrawal of the disciplinary action.
(3) For the purposes of this section:
(a) "Alarm of fire or emergency call" means responding
to, working at, or returning from a fire alarm or an emergency
call, but not participating in training or other nonemergency
activities.
(b) "Employer" means an employer who had twenty or
more full-time equivalent employees in the previous year.
(c) "Reinstatement" means reinstatement with back pay,
without loss of seniority or benefits, and with removal of any
related adverse material from the employee's personnel file,
if a file is maintained by the employer.
(d) "Withdrawal of disciplinary action" means withdrawal of disciplinary action with back pay, without loss of
seniority or benefits, and with removal of any related adverse
material from the employee's personnel file, if a file is maintained by the employer.
(e) "Volunteer fire fighter" means a fire fighter who:
(i) Is not paid;
(ii) Is not already at his or her place of employment when
called to serve as a volunteer, unless the employer agrees to
provide such an accommodation; and
(2004 Ed.)
Chapter 49.17
(iii) Has been ordered to remain at his or her position by
the commanding authority at the scene of the fire.
(f) "Reserve officer" has the meaning provided in RCW
41.24.010.
(4) The legislature declares that the public policies articulated in this section depend on the procedures established in
this section and no civil or criminal action may be maintained
relying on the public policies articulated in this section without complying with the procedures set forth in this section,
and to that end all civil actions and civil causes of action for
such injuries and all jurisdiction of the courts of this state
over such causes are hereby abolished, except as provided in
this section. [2004 c 44 § 1; 2003 c 401 § 5; 2001 c 173 § 1.]
Findings—Purpose—Intent—Effective date—2003 c 401: See notes
following RCW 49.12.187.
49.12.900 Severability—1973 2nd ex.s. c 16. If any
provision of this 1973 amendatory act, or its application to
any person or circumstances is held invalid, the remainder of
the act, or the application of the provision to other persons or
circumstances is not affected. [1973 2nd ex.s. c 16 § 20.]
49.12.900
49.12.901
49.12.901 Severability—1991 c 303. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1991 c 303 § 10.]
49.12.902 Effective date—1991 c 303 §§ 3-7. Sections
3 through 7 of this act shall take effect April 1, 1992. [1991
c 303 § 12.]
49.12.902
Chapter 49.17
Chapter 49.17 RCW
WASHINGTON INDUSTRIAL SAFETY
AND HEALTH ACT
Sections
49.17.010
49.17.020
49.17.022
49.17.030
49.17.040
49.17.041
49.17.050
49.17.055
49.17.060
49.17.070
49.17.080
49.17.090
49.17.100
49.17.110
49.17.120
49.17.130
49.17.140
49.17.150
49.17.160
49.17.170
49.17.180
49.17.190
Purpose.
Definitions.
Legislative findings and intent—Definition of agriculture.
Application of chapter—Fees and charges.
Rules and regulations—Authority—Procedure.
Agricultural safety standards—Limitation on adopting or
establishing between January 1, 1995, through January 15,
1996—Requirements.
Rules and regulations—Guidelines—Standards.
WISHA advisory committee—Appointment of members—
Duties—Terms, compensation, and expenses.
Employer—General safety standard—Compliance.
Right of entry—Inspections and investigations—Subpoenas—
Contempt.
Variance from safety and health standards—Application—
Contents—Procedure.
Variance from safety and health standards—Notice—Hearing—Order—Modification or revocation.
Inspection—Employer and employee representatives.
Compliance by employee—Violations—Notice—Review.
Violations—Citations.
Violations—Dangerous conditions—Citations and orders of
immediate restraint—Restraints—Restraining orders.
Appeal to board—Citation or notification of assessment of
penalty—Final order—Procedure—Redetermination—
Hearing.
Appeal to superior court—Review or enforcement of orders.
Discrimination against employee filing complaint, instituting
proceedings, or testifying prohibited—Procedure—Remedy.
Injunctions—Temporary restraining orders.
Violations—Civil penalties.
Violations—Criminal penalties.
[Title 49 RCW—page 13]
49.17.010
49.17.200
49.17.210
49.17.220
49.17.230
49.17.240
49.17.250
49.17.260
49.17.270
49.17.280
49.17.285
49.17.288
49.17.300
49.17.310
49.17.320
49.17.350
49.17.360
49.17.370
49.17.900
49.17.910
Title 49 RCW: Labor Regulations
Confidentiality—Trade secrets.
Research, experiments, and demonstrations for safety purposes—Confidentiality of information—Variances.
Records—Reports—Notice to employee exposed to harmful
materials.
Compliance with federal act—Agreements and acceptance of
grants authorized.
Safety and health standards.
Voluntary compliance program—Consultation and advisory
services.
Statistics—Investigations—Reports.
Administration of chapter.
Agricultural workers and handlers of agricultural pesticides—
Coordination of regulation and enforcement with department
of agriculture.
Medical monitoring—Records on covered pesticides—
Reports.
Cholinesterase monitoring—Reports.
Temporary worker housing—Electricity—Storage, handling,
preparation of food—Rules.
Temporary worker housing—Licensing, operation, and
inspection—Rules—Definition.
Temporary worker housing operation standards—Departments' agreement—Enforcement—Definition.
Flaggers.
Ergonomics Initiative—Intent.
Ergonomics Initiative—Definition—Rule repeal.
Short title.
Severability—1973 c 80.
49.17.010
49.17.010 Purpose. The legislature finds that personal
injuries and illnesses arising out of conditions of employment
impose a substantial burden upon employers and employees
in terms of lost production, wage loss, medical expenses, and
payment of benefits under the industrial insurance act. Therefore, in the public interest for the welfare of the people of the
state of Washington and in order to assure, insofar as may
reasonably be possible, safe and healthful working conditions
for every man and woman working in the state of Washington, the legislature in the exercise of its police power, and in
keeping with the mandates of Article II, section 35 of the
state Constitution, declares its purpose by the provisions of
this chapter to create, maintain, continue, and enhance the
industrial safety and health program of the state, which program shall equal or exceed the standards prescribed by the
Occupational Safety and Health Act of 1970 (Public Law 91596, 84 Stat. 1590). [1973 c 80 § 1.]
Industrial insurance: Title 51 RCW.
49.17.020
49.17.020 Definitions. For the purposes of this chapter:
(1) The term "agriculture" means farming and includes,
but is not limited to:
(a) The cultivation and tillage of the soil;
(b) Dairying;
(c) The production, cultivation, growing, and harvesting
of any agricultural or horticultural commodity;
(d) The raising of livestock, bees, fur-bearing animals, or
poultry; and
(e) Any practices performed by a farmer or on a farm,
incident to or in connection with such farming operations,
including but not limited to preparation for market and delivery to:
(i) Storage;
(ii) Market; or
(iii) Carriers for transportation to market.
The term "agriculture" does not mean a farmer's processing for sale or handling for sale a commodity or product
[Title 49 RCW—page 14]
grown or produced by a person other than the farmer or the
farmer's employees.
(2) The term "director" means the director of the department of labor and industries, or his designated representative.
(3) The term "department" means the department of
labor and industries.
(4) The term "employer" means any person, firm, corporation, partnership, business trust, legal representative, or
other business entity which engages in any business, industry, profession, or activity in this state and employs one or
more employees or who contracts with one or more persons,
the essence of which is the personal labor of such person or
persons and includes the state, counties, cities, and all municipal corporations, public corporations, political subdivisions
of the state, and charitable organizations: PROVIDED, That
any person, partnership, or business entity not having
employees, and who is covered by the industrial insurance act
shall be considered both an employer and an employee.
(5) The term "employee" means an employee of an
employer who is employed in the business of his employer
whether by way of manual labor or otherwise and every person in this state who is engaged in the employment of or who
is working under an independent contract the essence of
which is his personal labor for an employer under this chapter
whether by way of manual labor or otherwise.
(6) The term "person" means one or more individuals,
partnerships, associations, corporations, business trusts, legal
representatives, or any organized group of persons.
(7) The term "safety and health standard" means a standard which requires the adoption or use of one or more practices, means, methods, operations, or processes reasonably
necessary or appropriate to provide safe or healthful employment and places of employment.
(8) The term "work place" means any plant, yard, premises, room, or other place where an employee or employees
are employed for the performance of labor or service over
which the employer has the right of access or control, and
includes, but is not limited to, all work places covered by
industrial insurance under Title 51 RCW, as now or hereafter
amended.
(9) The term "working day" means a calendar day,
except Saturdays, Sundays, and all legal holidays as set forth
in RCW 1.16.050, as now or hereafter amended, and for the
purposes of the computation of time within which an act is to
be done under the provisions of this chapter, shall be computed by excluding the first working day and including the
last working day. [1997 c 362 § 2; 1973 c 80 § 2.]
Department of labor and industries: Chapter 43.22 RCW.
49.17.022
49.17.022 Legislative findings and intent—Definition
of agriculture. The legislature finds that the state's farms are
diverse in their nature and the owners, managers, and their
employees continually find new ways to plant, raise, harvest,
process, store, market, and distribute their products. The legislature further finds that the department of labor and industries needs guidance in determining when activities related to
agricultural products are to be regulated as agricultural activities and when they should be regulated as other activities. It
is the intent of the legislature that activities performed by a
farmer as incident to or in conjunction with his or her farming
(2004 Ed.)
Washington Industrial Safety and Health Act
activities be regulated as agricultural activities. For this purpose, an agricultural activity is to be interpreted broadly,
based on the definition of "agriculture" in RCW 49.17.020.
[1997 c 362 § 1.]
49.17.030
49.17.030 Application of chapter—Fees and charges.
This chapter shall apply with respect to employment performed in any work place within the state. The department of
labor and industries shall provide by rule for a schedule of
fees and charges to be paid by each employer subject to this
chapter who is not subject to or obtaining coverage under the
industrial insurance laws and who is not a self-insurer. The
fees and charges collected shall be for the purpose of defraying such employer's pro rata share of the expenses of enforcing and administering this chapter. [1973 c 80 § 3.]
49.17.040
49.17.040 Rules and regulations—Authority—Procedure. The director shall make, adopt, modify, and repeal
rules and regulations governing safety and health standards
for conditions of employment as authorized by this chapter
after a public hearing in conformance with the administrative
procedure act and the provisions of this chapter. At least
thirty days prior to such public hearing, the director shall
cause public notice of such hearing to be made in newspapers
of general circulation in this state, of the date, time, and place
of such public hearing, along with a general description of the
subject matter of the proposed rules and information as to
where copies of any rules and regulations proposed for adoption may be obtained and with a solicitation for recommendations in writing or suggestions for inclusion or changes in
such rules to be submitted not later than five days prior to
such public hearing. Any preexisting rules adopted by the
department of labor and industries relating to health and
safety standards in work places subject to the jurisdiction of
the department shall remain effective insofar as such rules are
not inconsistent with the provisions of this chapter. [1973 c
80 § 4.]
49.17.041
49.17.041 Agricultural safety standards—Limitation
on adopting or establishing between January 1, 1995,
through January 15, 1996—Requirements. (1)(a) Except
as provided in (b) of this subsection, no rules adopted under
this chapter amending or establishing agricultural safety standards shall take effect during the period beginning January 1,
1995, and ending January 15, 1996. This subsection applies,
but is not limited to applying, to a rule adopted before January 1, 1995, but with an effective date which is during the
period beginning January 1, 1995, and ending January 15,
1996, and to provisions of rules adopted prior to January 1,
1995, which provisions are to become effective during the
period beginning January 1, 1995, and ending January 15,
1996.
(b) Subsection (1)(a) of this section does not apply to:
Provisions of rules that were in effect before January 1, 1995;
emergency rules adopted under RCW 34.05.350; or revisions
to chapter 296-306 WAC regarding rollover protective structures that were adopted in 1994 and effective March 1, 1995,
and that are additionally revised to refer to the variance process available under this chapter.
(2004 Ed.)
49.17.050
(2) The rules for agricultural safety adopted under this
chapter must:
(a) Establish, for agricultural employers, an agriculture
safety standard that includes agriculture-specific rules and
specific references to the general industry safety standard
adopted under chapter 49.17 RCW; and
(b) Exempt agricultural employers from the general
industry safety standard adopted under chapter 49.17 RCW
for all rules not specifically referenced in the agriculture
safety standard.
(3) The department shall publish in one volume all of the
occupational safety rules that apply to agricultural employers
and shall make this volume available to all agricultural
employers before January 15, 1996. This volume must be
available in both English and Spanish.
(4) The department shall provide training, education, and
enhanced consultation services concerning its agricultural
safety rules to agricultural employers before the rules' effective dates. The training, education, and consultation must
continue throughout the winter of 1995-1996. Training and
education programs must be provided throughout the state
and must be coordinated with agricultural associations in
order to meet their members' needs.
(5) The department shall provide, for informational purposes, a list of commercially available rollover protective
structures for tractors used in agricultural operations manufactured before October 25, 1976. The list must include the
name and address of the manufacturer and the approximate
price of the structure. Included with the list shall be a statement indicating that an employer may apply for a variance
from the rules requiring rollover protective structures under
this chapter and that variances may be granted in appropriate
circumstances on a case-by-case basis. The statement shall
also provide examples of circumstances under which a variance may be granted. The list and statement shall be generally available to the agricultural community before the
department may take any action to enforce rules requiring
rollover protective structures for tractors used in agricultural
operations manufactured before October 25, 1976. [1995 c
371 § 2.]
Finding—1995 c 371: "The legislature finds that:
(1) The state's highly productive and efficient agricultural sector is
composed predominately of family-owned and managed farms and an industrious and efficient work force;
(2) A reasonable level of safety regulations is needed to protect workers;
(3) The smaller but highly efficient farming operations would benefit
from safety rules that are easily referenced and agriculture-specific to the
extent possible; and
(4) There should be lead time between the adoption of agriculture
safety rules and their effective date in order to allow the department of labor
and industries to provide training, education, and enhanced consultation services to family-owned and managed farms." [1995 c 371 § 1.]
Application—1995 c 371 § 2: "Section 2(1) of this act is remedial in
nature and applies to rules and provisions of rules regarding agricultural
safety that would take effect after December 31, 1994." [1995 c 371 § 4.]
49.17.050
49.17.050 Rules and regulations—Guidelines—Standards. In the adoption of rules and regulations under the
authority of this chapter, the director shall:
(1) Provide for the preparation, adoption, amendment, or
repeal of rules and regulations of safety and health standards
[Title 49 RCW—page 15]
49.17.055
Title 49 RCW: Labor Regulations
governing the conditions of employment of general and special application in all work places;
(2) Provide for the adoption of occupational health and
safety standards which are at least as effective as those
adopted or recognized by the United States secretary of labor
under the authority of the Occupational Safety and Health
Act of 1970 (Public Law 91-596; 84 Stat. 1590);
(3) Provide a method of encouraging employers and
employees in their efforts to reduce the number of safety and
health hazards at their work places and to stimulate employers and employees to institute new and to perfect existing
programs for providing safe and healthful working conditions;
(4) Provide for the promulgation of health and safety
standards and the control of conditions in all work places
concerning gases, vapors, dust, or other airborne particles,
toxic materials, or harmful physical agents which shall set a
standard which most adequately assures, to the extent feasible, on the basis of the best available evidence, that no
employee will suffer material impairment of health or functional capacity even if such employee has regular exposure to
the hazard dealt with by such standard for the period of his
working life; any such standards shall require where appropriate the use of protective devices or equipment and for
monitoring or measuring any such gases, vapors, dust, or
other airborne particles, toxic materials, or harmful physical
agents;
(5) Provide for appropriate reporting procedures by
employers with respect to such information relating to conditions of employment which will assist in achieving the objectives of this chapter;
(6) Provide for the frequency, method, and manner of the
making of inspections of work places without advance
notice; and,
(7) Provide for the publication and dissemination to
employers, employees, and labor organizations and the posting where appropriate by employers of informational, education, or training materials calculated to aid and assist in
achieving the objectives of this chapter;
(8) Provide for the establishment of new and the perfection and expansion of existing programs for occupational
safety and health education for employers and employees,
and, in addition institute methods and procedures for the
establishment of a program for voluntary compliance solely
through the use of advice and consultation with employers
and employees with recommendations including recommendations of methods to abate violations relating to the requirements of this chapter and all applicable safety and health
standards and rules and regulations promulgated pursuant to
the authority of this chapter;
(9) Provide for the adoption of safety and health standards requiring the use of safeguards in trenches and excavations and around openings of hoistways, hatchways, elevators, stairways, and similar openings;
(10) Provide for the promulgation of health and safety
standards requiring the use of safeguards for all vats, pans,
trimmers, cut off, gang edger, and other saws, planers,
presses, formers, cogs, gearing, belting, shafting, coupling,
set screws, live rollers, conveyors, mangles in laundries, and
machinery of similar description, which can be effectively
guarded with due regard to the ordinary use of such machin[Title 49 RCW—page 16]
ery and appliances and the danger to employees therefrom,
and with which the employees of any such work place may
come in contact while in the performance of their duties and
prescribe methods, practices, or processes to be followed by
employers which will enhance the health and safety of
employees in the performance of their duties when in proximity to machinery or appliances mentioned in this subsection;
(11) Certify that no later than twenty business days prior
to the effective date of any significant legislative rule, as
defined by RCW 34.05.328, a meeting of impacted parties is
convened to: (a) Identify ambiguities and problem areas in
the rule; (b) coordinate education and public relations efforts
by all parties; (c) provide comments regarding internal
department training and enforcement plans; and (d) provide
comments regarding appropriate evaluation mechanisms to
determine the effectiveness of the new rule. The meeting
shall include a balanced representation of both business and
labor from impacted industries, department personnel
responsible for the above subject areas, and other agencies or
key stakeholder groups as determined by the department. An
existing advisory committee may be utilized if appropriate.
[1998 c 224 § 1; 1973 c 80 § 5.]
49.17.055
49.17.055 WISHA advisory committee—Appointment of members—Duties—Terms, compensation, and
expenses. The director shall appoint a WISHA advisory
committee composed of ten members: Four members representing subject workers, each of whom shall be appointed
from a list of at least three names submitted by a recognized
statewide organization of employees, representing a majority
of employees; four members representing subject employers,
each of whom shall be appointed from a list of at least three
names submitted by a recognized statewide organization of
employers, representing a majority of employers; and two ex
officio members, without a vote, one of whom shall be the
chairperson of the board of industrial insurance appeals, and
the other representing the department. The member representing the department shall be chairperson. The committee
shall provide comment on department rule making, policies,
and other initiatives. The committee shall also conduct a continuing study of any aspect of safety and health the committee
determines to require their consideration. The committee
shall report its findings to the department or the board of
industrial insurance appeals for action as deemed appropriate. The members of the committee shall be appointed for a
term of three years commencing on July 1, 1997, and the
terms of the members representing the workers and employers shall be staggered so that the director shall designate one
member from each group initially appointed whose term shall
expire on June 30, 1998, and one member from each group
whose term shall expire on June 30, 1999. The members shall
serve without compensation, but are entitled to travel
expenses as provided in RCW 43.03.050 and 43.03.060. The
committee may hire such experts, if any, as it requires to discharge its duties and may utilize such personnel and facilities
of the department and board of industrial insurance appeals
as it needs, without charge. All expenses of the committee
must be paid by the department. [1997 c 107 § 1.]
(2004 Ed.)
Washington Industrial Safety and Health Act
49.17.060 Employer—General safety standard—
Compliance. Each employer:
(1) Shall furnish to each of his employees a place of
employment free from recognized hazards that are causing or
likely to cause serious injury or death to his employees:
PROVIDED, That no citation or order assessing a penalty
shall be issued to any employer solely under the authority of
this subsection except where no applicable rule or regulation
has been adopted by the department covering the unsafe or
unhealthful condition of employment at the work place; and
(2) Shall comply with the rules, regulations, and orders
promulgated under this chapter. [1973 c 80 § 6.]
49.17.060
49.17.070
49.17.070 Right of entry—Inspections and investigations—Subpoenas—Contempt. The director, or his authorized representative, in carrying out his duties under this
chapter, upon the presentation of appropriate credentials to
the owner, manager, operator, or agent in charge, is authorized:
(1) To enter without delay and at all reasonable times the
factory, plant, establishment, construction site, or other area,
work place, or environment where work is performed by an
employee of an employer; and
(2) To inspect, survey, and investigate during regular
working hours and at other reasonable times, and within reasonable limits and in a reasonable manner, any such work
place and all pertinent conditions, structures, machines, apparatus, devices, equipment, and materials therein, and to question privately any such employer, owner, operator, agent, or
employee;
(3) In making inspections and making investigations
under this chapter the director may require the attendance and
testimony of witnesses and the production of evidence under
oath. Witnesses shall be paid the same fees and mileage that
are paid witnesses in the superior courts. In the case of contumacy, failure, or refusal of any person to obey such an order,
any superior court within the jurisdiction of which such person is found, or resides, or transacts business, upon the application of the director, shall have jurisdiction to issue to such
person an order requiring such person to appear to produce
evidence if, as, and when so ordered, and to give testimony
relating to the matter under investigation or in question, and
any failure to obey such order of the court may be punished
by said court as a contempt thereof. [1973 c 80 § 7.]
49.17.080
49.17.080 Variance from safety and health standards—Application—Contents—Procedure. (1) Any
employer may apply to the director for a temporary order
granting a variance from any safety and health standard promulgated by rule or regulation under the authority of this
chapter. Such temporary order shall be granted only if the
employer files an application which meets the requirements
of subsection (2) of this section and establishes that the
employer is unable to comply with a safety or health standard
because of the unavailability of professional or technical personnel or of materials and equipment needed to come into
compliance with the safety and health standard or because
necessary construction or alteration of facilities cannot be
completed by the effective date of such safety and health
standard, that he is taking all available steps to safeguard his
employees against the hazards covered by the safety and
(2004 Ed.)
49.17.090
health standard, and he has an effective program for coming
into compliance with such safety and health standard as
quickly as practicable. Any temporary order issued under the
authority of this subsection shall prescribe the practices,
means, methods, operations, and processes which the
employer must adopt and use while the order is in effect and
state in detail his program for coming into compliance with
the safety and health standard. Such a temporary order may
be granted only after notice to employees and an opportunity
for a hearing upon request of the employer or any affected
employee. The name of any affected employee requesting a
hearing under the provisions of this subsection shall be confidential and shall not be disclosed without the consent of such
employee. The director may issue one interim order to be
effective until a determination is made or a decision rendered
if a hearing is demanded. No temporary order may be in
effect for longer than the period needed by the employer to
achieve compliance with the standard, or one year, whichever
is shorter, except that such an order may be renewed not more
than twice, so long as the requirements of this subsection are
met and if an application for renewal is filed at least ninety
days prior to the expiration date of the order. No renewal of a
temporary order may remain in effect for longer than one
hundred eighty days.
(2) An application for a temporary order under this section shall contain:
(a) A specification of the safety and health standard or
portion thereof from which the employer seeks a variance;
(b) A representation by the employer, supported by representations from qualified persons having first hand knowledge of the facts represented, that he is unable to comply with
the safety and health standard or portion thereof and a
detailed statement of the reasons therefor;
(c) A statement of the steps the employer has taken and
will take, with specific dates, to protect employees against
the hazard covered by the standard;
(d) A statement as to when the employer expects to be
able to comply with the standard or portion thereof and what
steps he has taken and will take, with dates specified, to come
into compliance with the standard; and
(e) A certification that the employer, by the date of mailing or delivery of the application to the director, has informed
his employees of the application by providing a copy thereof
to his employees or their authorized representative by posting
a copy of such application in a place or places reasonably
accessible to all employees or by other appropriate means of
notification and by mailing a copy to the authorized representative of such employees; the application shall set forth the
manner in which the employees have been so informed. The
application shall also advise employees and their employee
representatives of their right to apply to the director to conduct a hearing upon the application for a variance. [1973 c 80
§ 8.]
49.17.090 Variance from safety and health standards—Notice—Hearing—Order—Modification or
revocation. Any employer may apply to the director for an
order for a variance from any rule or regulation establishing a
safety and health standard promulgated under this chapter.
Affected employees shall be given notice of each such application and in the manner prescribed by RCW 49.17.080 shall
49.17.090
[Title 49 RCW—page 17]
49.17.100
Title 49 RCW: Labor Regulations
be informed of their right to request a hearing on any such
application. The director shall issue such order granting a
variance, after opportunity for an inspection, if he determines
or decides after a hearing has been held, if request for hearing
has been made, that the applicant for the variance has demonstrated by a preponderance of the evidence that the conditions, practices, means, methods, operations, or processes
used or proposed to be used by such applicant employer will
provide employment and places of employment to his
employees which are as safe and healthful as those which
would prevail if he complied with the safety and health standard or standards from which the variance is sought. The
order so issued shall prescribe the conditions the employer
must maintain, and the practices, means, methods, operations, and processes which he must adopt and utilize to the
extent they differ from the standard in question. At any time
after six months has elapsed from the date of the issuance of
the order granting a variance upon application of an
employer, employee, or the director on his own motion, after
notice has been given in the manner prescribed for the issuance of such order may modify or revoke the order granting
the variance from any standard promulgated under the
authority of this chapter. [1973 c 80 § 9.]
49.17.100
49.17.100 Inspection—Employer and employee representatives. A representative of the employer and an
employee representative authorized by the employees of such
employer shall be given an opportunity to accompany the
director, or his authorized representative, during the physical
inspection of any work place for the purpose of aiding such
inspection. Where there is no authorized employee representative, the director or his authorized representative shall consult with a reasonable number of employees concerning matters of health and safety in the work place. The director may
adopt procedural rules and regulations to implement the provisions of this section: PROVIDED, That neither this section, nor any other provision of this chapter, shall be construed to interfere with, impede, or in any way diminish the
right of employees to bargain collectively with their employers through representatives of their own choosing concerning
wages or standards or conditions of employment which equal
or exceed those established under the authority of this chapter. [1986 c 192 § 1; 1973 c 80 § 10.]
49.17.110
49.17.110 Compliance by employee—Violations—
Notice—Review. Each employee shall comply with the provisions of this chapter and all rules, regulations, and orders
issued pursuant to the authority of this chapter which are
applicable to his own actions and conduct in the course of his
employment. Any employee or representative of employees
who in good faith believes that a violation of a safety or
health standard, promulgated by rule under the authority of
this chapter exists that threatens physical harm to employees,
or that an imminent danger to such employees exists, may
request an inspection of the work place by giving notice to
the director or his authorized representative of such violation
or danger. Any such notice shall be reduced to writing, shall
set forth with reasonable particularity the grounds for the
notice, and shall be signed by the employee or representative
of employees. A copy of the notice shall be provided the
[Title 49 RCW—page 18]
employer or his agent no later than at the time of inspection,
except that, upon the request of the person giving such notice,
his name and the names of individual employees referred to
therein shall not appear in such copy or on any record published, released, or made available pursuant to any provision
of this chapter. If upon receipt of such notification the director determines that there are reasonable grounds to believe
that such violation or danger exists, he shall make a special
inspection as soon as practicable, to determine if such violation or danger exists. If the director determines there are no
reasonable grounds to believe that a violation or danger
exists, he shall notify the employer and the employee or representative of the employees in writing of such determination.
Prior to or during any inspection of a work place, any
employee or representative of employees employed in such
work place may notify the director or any representative of
the director responsible for conducting the inspection, in
writing, of any violation of this chapter which he has reason
to believe exists in such work place. The director shall, by
rule, establish procedures for informal review of any refusal
by a representative of the director to issue a citation with
respect to any such alleged violation, and shall furnish the
employee or representative of employees requesting such
review a written statement of the reasons for the director's
final disposition of the case. [1973 c 80 § 11.]
49.17.120
49.17.120 Violations—Citations. (1) If upon inspection or investigation the director or his or her authorized representative believes that an employer has violated a requirement of RCW 49.17.060, or any safety or health standard
promulgated by rule adopted by the director, or the conditions of any order granting a variance pursuant to this chapter, the director shall with reasonable promptness issue a citation to the employer. Each citation shall be in writing and
shall describe with particularity the nature of the violation,
including a reference to the provisions of the statute, standard, rule, regulation, or order alleged to have been violated.
In addition, the citation shall fix a reasonable time for the
abatement of the violation.
(2) The director may prescribe procedures for the issuance of a notice in lieu of a citation with respect to de minimis
violations which have no direct or immediate relationship to
safety or health.
(3) Each citation, or a copy or copies thereof, issued
under the authority of this section and RCW 49.17.130 shall
be prominently posted, at or near each place a violation
referred to in the citation occurred or as may otherwise be
prescribed in regulations issued by the director. The director
shall provide by rule for procedures to be followed by an
employee representative upon written application to receive
copies of citations and notices issued to any employer having
employees who are represented by such employee representative. Such rule may prescribe the form of such application,
the time for renewal of applications, and the eligibility of the
applicant to receive copies of citations and notices.
(4) No citation may be issued under this section or RCW
49.17.130 after the expiration of six months following a compliance inspection, investigation, or survey revealing any
such violation.
(2004 Ed.)
Washington Industrial Safety and Health Act
(5)(a) No citation may be issued under this section if
there is unpreventable employee misconduct that led to the
violation, but the employer must show the existence of:
(i) A thorough safety program, including work rules,
training, and equipment designed to prevent the violation;
(ii) Adequate communication of these rules to employees;
(iii) Steps to discover and correct violations of its safety
rules; and
(iv) Effective enforcement of its safety program as written in practice and not just in theory.
(b) This subsection (5) does not eliminate or modify any
other defenses that may exist to a citation. [1999 c 93 § 1;
1973 c 80 § 12.]
49.17.130 Violations—Dangerous conditions—Citations and orders of immediate restraint—Restraints—
Restraining orders. (1) If upon inspection or investigation,
the director, or his authorized representative, believes that an
employer has violated a requirement of RCW 49.17.060, or
any safety or health standard promulgated by rules of the
department, or any conditions of an order granting a variance,
which violation is such that a danger exists from which there
is a substantial probability that death or serious physical harm
could result to any employee, the director or his authorized
representative shall issue a citation and may issue an order
immediately restraining any such condition, practice,
method, process, or means in the work place. Any order
issued under this section may require such steps to be taken
as may be necessary to avoid, correct, or remove such danger
and prohibit the employment or presence of any individual in
locations or under conditions where such danger exists,
except individuals whose presence is necessary to avoid, correct, or remove such danger or to maintain the capacity of a
continuous process operation in order that the resumption of
normal operations may be had without a complete cessation
of operations, or where a cessation of operations is necessary,
to permit such to be accomplished in a safe and orderly manner. In addition, if any machine or equipment, or any part
thereof, is in violation of a requirement of RCW 49.17.060 or
any safety or health standard promulgated by rules of the
department, and the operation of such machine or equipment
gives rise to a substantial probability that death or serious
physical harm could result to any employee, and an order of
immediate restraint of the use of such machine or equipment
has been issued under this subsection, the use of such
machine or equipment is prohibited, and a notice to that
effect shall be attached thereto by the director or his authorized representative.
(2) Whenever the director, or his authorized representative, concludes that a condition of employment described in
subsection (1) of this section exists in any work place, he
shall promptly inform the affected employees and employers
of the danger.
(3) At any time that a citation or a citation and order
restraining any condition of employment or practice
described in subsection (1) of this section is issued by the
director, or his authorized representative, he may in addition
request the attorney general to make an application to the
superior court of the county wherein such condition of
employment or practice exists for a temporary restraining
49.17.130
(2004 Ed.)
49.17.140
order or such other relief as appears to be appropriate under
the circumstances. [1973 c 80 § 13.]
49.17.140
49.17.140 Appeal to board—Citation or notification
of assessment of penalty—Final order—Procedure—
Redetermination—Hearing. (1) If after an inspection or
investigation the director or the director's authorized representative issues a citation under the authority of RCW
49.17.120 or 49.17.130, the department, within a reasonable
time after the termination of such inspection or investigation,
shall notify the employer by certified mail of the penalty to be
assessed under the authority of RCW 49.17.180 and shall
state that the employer has fifteen working days within which
to notify the director that the employer wishes to appeal the
citation or assessment of penalty. If, within fifteen working
days from the communication of the notice issued by the
director the employer fails to notify the director that the
employer intends to appeal the citation or assessment penalty,
and no notice is filed by any employee or representative of
employees under subsection (3) of this section within such
time, the citation and the assessment shall be deemed a final
order of the department and not subject to review by any
court or agency.
(2) If the director has reason to believe that an employer
has failed to correct a violation for which a citation has been
issued within the period permitted in the citation for its correction, which period shall not begin to run until the entry of
a final order in the case of any appeal proceedings under this
section initiated by the employer in good faith and not solely
for delay or avoidance of penalties, the director shall notify
the employer by certified mail of such failure to correct the
violation and of the penalty to be assessed under RCW
49.17.180 by reason of such failure, and shall state that the
employer has fifteen working days from the communication
of such notification and assessment of penalty to notify the
director that the employer wishes to appeal the director's notification of the assessment of penalty. If, within fifteen working days from the receipt of notification issued by the director
the employer fails to notify the director that the employer
intends to appeal the notification of assessment of penalty,
the notification and assessment of penalty shall be deemed a
final order of the department and not subject to review by any
court or agency.
(3) If any employer notifies the director that the
employer intends to appeal the citation issued under either
RCW 49.17.120 or 49.17.130 or notification of the assessment of a penalty issued under subsections (1) or (2) of this
section, or if, within fifteen working days from the issuance
of a citation under either RCW 49.17.120 or 49.17.130 any
employee or representative of employees files a notice with
the director alleging that the period of time fixed in the citation for the abatement of the violation is unreasonable, the
director may reassume jurisdiction over the entire matter, or
any portion thereof upon which notice of intention to appeal
has been filed with the director pursuant to this subsection. If
the director reassumes jurisdiction of all or any portion of the
matter upon which notice of appeal has been filed with the
director, any redetermination shall be completed and corrective notices of assessment of penalty, citations, or revised
periods of abatement completed within a period of thirty
working days. The thirty-working-day redetermination
[Title 49 RCW—page 19]
49.17.150
Title 49 RCW: Labor Regulations
period may be extended up to fifteen additional working days
upon agreement of all parties to the appeal. The redetermination shall then become final subject to direct appeal to the
board of industrial insurance appeals within fifteen working
days of such redetermination with service of notice of appeal
upon the director. In the event that the director does not reassume jurisdiction as provided in this subsection, the director
shall promptly notify the state board of industrial insurance
appeals of all notifications of intention to appeal any such
citations, any such notices of assessment of penalty and any
employee or representative of employees notice of intention
to appeal the period of time fixed for abatement of a violation
and in addition certify a full copy of the record in such appeal
matters to the board. The director shall adopt rules of procedure for the reassumption of jurisdiction under this subsection affording employers, employees, and employee representatives notice of the reassumption of jurisdiction by the
director, and an opportunity to object or support the reassumption of jurisdiction, either in writing or orally at an
informal conference to be held prior to the expiration of the
redetermination period. A notice of appeal filed under this
section shall stay the effectiveness of any citation or notice of
the assessment of a penalty pending review by the board of
industrial insurance appeals, but such appeal shall not stay
the effectiveness of any order of immediate restraint issued
by the director under the authority of RCW 49.17.130. The
board of industrial insurance appeals shall afford an opportunity for a hearing in the case of each such appellant and the
department shall be represented in such hearing by the attorney general and the board shall in addition provide affected
employees or authorized representatives of affected employees an opportunity to participate as parties to hearings under
this subsection. The board shall thereafter make disposition
of the issues in accordance with procedures relative to contested cases appealed to the state board of industrial insurance appeals.
Upon application by an employer showing that a good
faith effort to comply with the abatement requirements of a
citation has been made and that the abatement has not been
completed because of factors beyond the employer's control,
the director after affording an opportunity for a hearing shall
issue an order affirming or modifying the abatement requirements in such citation. [1994 c 61 § 1; 1986 c 20 § 1; 1973 c
80 § 14.]
49.17.150
49.17.150 Appeal to superior court—Review or
enforcement of orders. (1) Any person aggrieved by an
order of the board of industrial insurance appeals issued
under RCW 49.17.140(3) may obtain a review of such order
in the superior court for the county in which the violation is
alleged to have occurred, by filing in such court within thirty
days following the communication of the board's order or
denial of any petition or petitions for review, a written notice
of appeal praying that the order be modified or set aside. Such
appeal shall be perfected by filing with the clerk of the court
and by serving a copy thereof by mail, or personally, on the
director and on the board. The board shall thereupon transmit
a copy of the notice of appeal to all parties who participated
in proceedings before the board, and shall file in the court the
complete record of the proceedings. Upon such filing the
court shall have jurisdiction of the proceeding and of the
[Title 49 RCW—page 20]
question determined therein, and shall have power to grant
such temporary relief or restraining order as it deems just and
proper, and to make and enter upon the pleadings and the
record of proceedings a decree affirming, modifying, or setting aside in all or in part, the decision of the board of industrial insurance appeals and enforcing the same to the extent
that such order is affirmed or modified. The commencement
of appellate proceedings under this subsection shall not,
unless ordered by the court, operate as a stay of the order of
the board of industrial insurance appeals. No objection that
has not been urged before the board shall be considered by
the court, unless the failure or neglect to urge such objection
shall be excused because of extraordinary circumstances. The
findings of the board or hearing examiner where the board
has denied a petition or petitions for review with respect to
questions of fact, if supported by substantial evidence on the
record considered as a whole, shall be conclusive. If any
party shall apply to the court for leave to adduce additional
evidence and shall show to the satisfaction of the court that
such additional evidence is material and that there were reasonable grounds for the failure to adduce such evidence in the
hearing before the board, the court may order such additional
evidence to be taken before the board and to be made a part
of the record. The board may modify its findings as to the
facts, or make new findings, by reason of additional evidence
so taken and filed, and it shall file such modified or new findings, which findings with respect to questions of fact are supported by substantial evidence on the record considered as a
whole, shall be conclusive, and its recommendations, if any,
for the modification or setting aside of its original order.
Upon the filing of the record with it, the jurisdiction of the
court shall be exclusive and the judgment and decree shall be
final, except as the same shall be subject to review by the
supreme court. Appeals filed under this subsection shall be
heard expeditiously.
(2) The director may also obtain review or enforcement
of any final order of the board by filing a petition for such
relief in the superior court for the county in which the alleged
violation occurred. The provisions of subsection (1) of this
section shall govern such proceeding to the extent applicable.
If a notice of appeal, as provided in subsection (1) of this section, is not filed within thirty days after service of the board's
order, the board's findings of fact, decision, and order or the
examiner's findings of fact, decision, and order when a petition or petitions for review have been denied shall be conclusive in connection with any petition for enforcement which is
filed by the director after the expiration of such thirty day
period. In any such case, as well as in the case of an unappealed citation or a notification of the assessment of a penalty
by the director, which has become a final order under subsection (1) or (2) of RCW 49.17.140 upon application of the
director, the clerk of the court, unless otherwise ordered by
the court, shall forthwith enter a decree enforcing the citation
and notice of assessment of penalty and shall transmit a copy
of such decree to the director and the employer named in the
director's petition. In any contempt proceeding brought to
enforce a decree of the superior court entered pursuant to this
subsection or subsection (1) of this section the superior court
may assess the penalties provided in RCW 49.17.180, in
addition to invoking any other available remedies. [1982 c
109 § 1; 1973 c 80 § 15.]
(2004 Ed.)
Washington Industrial Safety and Health Act
49.17.160
49.17.160 Discrimination against employee filing
complaint, instituting proceedings, or testifying prohibited—Procedure—Remedy. (1) No person shall discharge
or in any manner discriminate against any employee because
such employee has filed any complaint or instituted or caused
to be instituted any proceeding under or related to this chapter, or has testified or is about to testify in any such proceeding or because of the exercise by such employee on behalf of
himself or others of any right afforded by this chapter.
(2) Any employee who believes that he has been discharged or otherwise discriminated against by any person in
violation of this section may, within thirty days after such
violation occurs, file a complaint with the director alleging
such discrimination. Upon receipt of such complaint, the
director shall cause such investigation to be made as he
deems appropriate. If upon such investigation, the director
determines that the provisions of this section have been violated, he shall bring an action in the superior court of the
county wherein the violation is alleged to have occurred
against the person or persons who is alleged to have violated
the provisions of this section. If the director determines that
the provisions of this section have not been violated, the
employee may institute the action on his own behalf within
thirty days of such determination. In any such action the
superior court shall have jurisdiction, for cause shown, to
restrain violations of subsection (1) of this section and order
all appropriate relief including rehiring or reinstatement of
the employee to his former position with back pay.
(3) Within ninety days of the receipt of the complaint
filed under this section, the director shall notify the complainant of his determination under subsection (2) of this section.
[1973 c 80 § 16.]
49.17.170
49.17.170 Injunctions—Temporary restraining
orders. (1) In addition to and after having invoked the powers of restraint vested in the director as provided in RCW
49.17.130 the superior courts of the state of Washington shall
have jurisdiction upon petition of the director, through the
attorney general, to enjoin any condition or practice in any
work place from which there is a substantial probability that
death or serious physical harm could result to any employee
immediately or before the imminence of such danger can be
eliminated through the enforcement procedures otherwise
provided by this chapter. Any order issued under this section
may require such steps to be taken as may be necessary to
avoid, correct, or remove such danger and prohibit the
employment or presence of any individual in locations or
under conditions where such danger exists, except individuals whose presence is necessary to avoid, correct, or remove
such danger or to maintain the capacity of a continuous process operation to resume normal operation without a complete cessation of operations, or where a cessation of operations is necessary, to permit such to be accomplished in a safe
and orderly manner.
(2) Upon the filing of any such petition the superior
courts of the state of Washington shall have jurisdiction to
grant such injunctive relief or temporary restraining order
pending the outcome of enforcement proceedings pursuant to
this chapter, except that no temporary restraining order issued
without notice shall be effective for a period longer than five
working days.
(2004 Ed.)
49.17.180
(3) Whenever and as soon as any authorized representative of the director concludes that a condition or practice
described in subsection (1) exists in any work place, he shall
inform the affected employees and employers of the danger
and may recommend to the director that relief be sought
under this section.
(4) If the director arbitrarily or capriciously fails to
invoke his restraining authority under RCW 49.17.130 or
fails to seek relief under this section, any employee who may
be injured by reason of such failure, or the representative of
such employees, may bring an action against the director in
the superior court for the county in which the danger is
alleged to exist for a writ of mandamus to compel the director
to seek such an order and for such further relief as may be
appropriate or seek the director to exercise his restraining
authority under RCW 49.17.130. [1973 c 80 § 17.]
49.17.180
49.17.180 Violations—Civil penalties. (1) Except as
provided in RCW 43.05.090, any employer who willfully or
repeatedly violates the requirements of RCW 49.17.060, of
any safety or health standard promulgated under the authority
of this chapter, of any existing rule or regulation governing
the conditions of employment promulgated by the department, or of any order issued granting a variance under RCW
49.17.080 or 49.17.090 may be assessed a civil penalty not to
exceed seventy thousand dollars for each violation. A minimum penalty of five thousand dollars shall be assessed for a
willful violation.
(2) Any employer who has received a citation for a serious violation of the requirements of RCW 49.17.060, of any
safety or health standard promulgated under the authority of
this chapter, of any existing rule or regulation governing the
conditions of employment promulgated by the department, or
of any order issued granting a variance under RCW
49.17.080 or 49.17.090 as determined in accordance with
subsection (6) of this section, shall be assessed a civil penalty
not to exceed seven thousand dollars for each such violation.
(3) Any employer who has received a citation for a violation of the requirements of RCW 49.17.060, of any safety
or health standard promulgated under this chapter, of any
existing rule or regulation governing the conditions of
employment promulgated by the department, or of any order
issued granting a variance under RCW 49.17.080 or
49.17.090, where such violation is specifically determined
not to be of a serious nature as provided in subsection (6) of
this section, may be assessed a civil penalty not to exceed
seven thousand dollars for each such violation, unless such
violation is determined to be de minimis.
(4) Any employer who fails to correct a violation for
which a citation has been issued under RCW 49.17.120 or
49.17.130 within the period permitted for its correction,
which period shall not begin to run until the date of the final
order of the board of industrial insurance appeals in the case
of any review proceedings under this chapter initiated by the
employer in good faith and not solely for delay or avoidance
of penalties, may be assessed a civil penalty of not more than
seven thousand dollars for each day during which such failure or violation continues.
(5) Any employer who violates any of the posting
requirements of this chapter, or any of the posting requirements of rules promulgated by the department pursuant to
[Title 49 RCW—page 21]
49.17.190
Title 49 RCW: Labor Regulations
this chapter related to employee or employee representative's
rights to notice, including but not limited to those employee
rights to notice set forth in RCW 49.17.080, 49.17.090,
49.17.120, 49.17.130, 49.17.220(1) and 49.17.240(2), shall
be assessed a penalty not to exceed seven thousand dollars for
each such violation. Any employer who violates any of the
posting requirements for the posting of informational, educational, or training materials under the authority of RCW
49.17.050(7), may be assessed a penalty not to exceed seven
thousand dollars for each such violation.
(6) For the purposes of this section, a serious violation
shall be deemed to exist in a work place if there is a substantial probability that death or serious physical harm could
result from a condition which exists, or from one or more
practices, means, methods, operations, or processes which
have been adopted or are in use in such work place, unless the
employer did not, and could not with the exercise of reasonable diligence, know of the presence of the violation.
(7) The director, or his authorized representatives, shall
have authority to assess all civil penalties provided in this
section, giving due consideration to the appropriateness of
the penalty with respect to the number of affected employees
of the employer being charged, the gravity of the violation,
the size of the employer's business, the good faith of the
employer, and the history of previous violations.
(8) Civil penalties imposed under this chapter shall be
paid to the director for deposit in the supplemental pension
fund established by RCW 51.44.033. Civil penalties may be
recovered in a civil action in the name of the department
brought in the superior court of the county where the violation is alleged to have occurred, or the department may utilize
the procedures for collection of civil penalties as set forth in
RCW 51.48.120 through 51.48.150. [1995 c 403 § 629; 1991
c 108 § 1; 1986 c 20 § 2; 1973 c 80 § 18.]
Findings—Short title—Intent—1995 c 403: See note following RCW
34.05.328.
Part headings not law—Severability—1995 c 403: See RCW
43.05.903 and 43.05.904.
49.17.190
49.17.190 Violations—Criminal penalties. (1) Any
person who gives advance notice of any inspection to be conducted under the authority of this chapter, without the consent of the director or his authorized representative, shall,
upon conviction be guilty of a gross misdemeanor and be
punished by a fine of not more than one thousand dollars or
by imprisonment for not more than six months, or by both.
(2) Whoever knowingly makes any false statement, representation, or certification in any application, record, report,
plan, or other document filed or required to be maintained
pursuant to this chapter shall, upon conviction be guilty of a
gross misdemeanor and be punished by a fine of not more
than ten thousand dollars, or by imprisonment for not more
than six months or by both.
(3) Any employer who wilfully and knowingly violates
the requirements of RCW 49.17.060, any safety or health
standard promulgated under this chapter, any existing rule or
regulation governing the safety or health conditions of
employment and adopted by the director, or any order issued
granting a variance under RCW 49.17.080 or 49.17.090 and
that violation caused death to any employee shall, upon conviction be guilty of a gross misdemeanor and be punished by
[Title 49 RCW—page 22]
a fine of not more than one hundred thousand dollars or by
imprisonment for not more than six months or by both;
except, that if the conviction is for a violation committed
after a first conviction of such person, punishment shall be a
fine of not more than two hundred thousand dollars or by
imprisonment for not more than one year, or by both.
(4) Any employer who has been issued an order immediately restraining a condition, practice, method, process, or
means in the work place, pursuant to RCW 49.17.130 or
49.17.170, and who nevertheless continues such condition,
practice, method, process, or means, or who continues to use
a machine or equipment or part thereof to which a notice prohibiting such use has been attached, shall be guilty of a gross
misdemeanor, and upon conviction shall be punished by a
fine of not more than ten thousand dollars or by imprisonment for not more than six months, or by both.
(5) Any employer who shall knowingly remove, displace, damage, or destroy, or cause to be removed, displaced,
damaged, or destroyed any safety device or safeguard
required to be present and maintained by any safety or health
standard, rule, or order promulgated pursuant to this chapter,
or pursuant to the authority vested in the director under RCW
43.22.050 shall, upon conviction, be guilty of a misdemeanor
and be punished by a fine of not more than one thousand dollars or by imprisonment for not more than ninety days, or by
both.
(6) Whenever the director has reasonable cause to
believe that any provision of this section defining a crime has
been violated by an employer, the director shall cause a
record of such alleged violation to be prepared, a copy of
which shall be referred to the prosecuting attorney of the
county wherein such alleged violation occurred, and the prosecuting attorney of such county shall in writing advise the
director of the disposition he shall make of the alleged violation. [1986 c 20 § 3; 1973 c 80 § 19.]
49.17.200
49.17.200 Confidentiality—Trade secrets. All information reported to or otherwise obtained by the director, or
his authorized representative, in connection with any inspection or proceeding under the authority of this chapter, which
contains or which might reveal a trade secret shall be considered confidential, except that such information may be disclosed to other officers or employees concerned with carrying out this chapter, or when relevant in any proceeding
under this chapter. In any such proceeding the director, the
board of industrial insurance appeals, or the court shall issue
such orders as may be appropriate to protect the confidentiality of trade secrets. [1973 c 80 § 20.]
Uniform trade secrets act: Chapter 19.108 RCW.
49.17.210
49.17.210 Research, experiments, and demonstrations for safety purposes—Confidentiality of information—Variances. The director is authorized to conduct,
either directly or by grant or contract, research, experiments,
and demonstrations as may be of aid and assistance in the furtherance of the objects and purposes of this chapter.
Employer identity, employee identity, and personal identifiers of voluntary participants in research, experiments, and
demonstrations shall be deemed confidential and shall not be
open to public inspection. Information obtained from such
(2004 Ed.)
Washington Industrial Safety and Health Act
voluntary activities shall not be deemed to be medical information for the purpose of RCW 51.36.060 and shall be
deemed confidential and shall not be open to public inspection. The director, in his or her discretion, is authorized to
grant a variance from any rule or regulation or portion
thereof, whenever he or she determines that such variance is
necessary to permit an employer to participate in an experiment approved by the director, and the experiment is
designed to demonstrate or validate new and improved techniques to safeguard the health or safety of employees. Any
such variance shall require that all due regard be given to the
health and safety of all employees participating in any experiment. [1991 c 89 § 1; 1973 c 80 § 21.]
49.17.220
49.17.220 Records—Reports—Notice to employee
exposed to harmful materials. (1) Each employer shall
make, keep, and preserve, and make available to the director
such records regarding his activities relating to this chapter as
the director may prescribe by regulation as necessary or
appropriate for the enforcement of this chapter or for developing information regarding the causes and prevention of
occupational accidents and illnesses. In order to carry out the
provisions of this section such regulations may include provisions requiring employers to conduct periodic inspections.
The director shall also issue regulations requiring that
employers, through posting of notices or other appropriate
means, keep their employees informed of their protections
and obligations under this chapter, including the provisions
of applicable safety and health standards.
(2) The director shall prescribe regulations requiring
employers to maintain accurate records, and to make periodic
reports of work-related deaths, and of injuries and illnesses
other than minor injuries requiring only first aid treatment
and which do not involve medical treatment, loss of consciousness, restriction of work or motion, or transfer to
another job.
(3) The director shall issue regulations requiring
employers to maintain accurate records of employee exposures to potentially toxic materials or harmful physical agents
which are required to be monitored or measured. Such regulations shall provide employees or their representatives with
an opportunity to observe such monitoring or measuring, and
to have access to the records thereof. Such regulations shall
also make appropriate provisions for each employee or
former employee to have access to such records as will indicate his own exposure to toxic materials or harmful physical
agents. Each employer shall promptly notify any employee
who has been or is being exposed to toxic materials or harmful physical agents in concentrations or at levels which
exceed those prescribed by any applicable safety and health
standard promulgated under this chapter and shall inform any
employee who is being thus exposed of the corrective action
being taken. [1973 c 80 § 22.]
49.17.230
49.17.230 Compliance with federal act—Agreements
and acceptance of grants authorized. The director is
authorized to adopt by rule any provision reasonably necessary to enable this state to qualify a state plan under section
18 of the Occupational Safety and Health Act of 1970 (Public
Law 91-596, 84 Stat. 1590) to enable this state to assume the
(2004 Ed.)
49.17.240
responsibility for the development and enforcement of occupational safety and health standards in all work places within
this state subject to the legislative jurisdiction of the state of
Washington. The director is authorized to enter into agreement with the United States and to accept on behalf of the
state of Washington grants of funds to implement the development and enforcement of this chapter and the Occupational
Safety and Health Act of 1970. [1973 c 80 § 23.]
49.17.240
49.17.240 Safety and health standards. (1) The director in the promulgation of rules under the authority of this
chapter shall establish safety and health standards for conditions of employment of general and/or specific applicability
for all industries, businesses, occupations, crafts, trades, and
employments subject to the provisions of this chapter, or
those that are a national or accepted federal standard. In
adopting safety and health standards for conditions of
employment, the director shall solicit and give due regard to
all recommendations by any employer, employee, or labor
representative of employees.
(2) Any safety and health standard adopted by rule of the
director shall, where appropriate, prescribe the use of labels
or other forms of warning to insure that employees are
apprised of all hazards to which they may be exposed, relevant symptoms, and appropriate emergency treatment, and
proper conditions and precautions of safe use or exposure.
Where appropriate, such rules shall so prescribe suitable protective equipment and control or technological procedures to
be used in connection with such hazards and shall provide for
monitoring or measuring employee exposure at such locations and intervals, and in such manner as may be reasonably
necessary for the protection of employees. In addition, where
appropriate, any such rule shall prescribe the type and frequency of medical examinations or other tests which shall be
made available, by the employer or at his cost, to employees
exposed to such hazards in order to most effectively determine whether the health of such employees is adversely
affected by such exposure. In the event that such medical
examinations are in the nature of research, as determined by
the director, such examinations may be furnished at the
expense of the department. The results of such examinations
or tests shall be furnished only to the director, other appropriate agencies of government, and at the request of the
employee to his physician.
(3) Whenever the director adopts by rule any safety and
health standard he may at the same time provide by rule the
effective date of such standard which shall not be less than
thirty days, excepting emergency rules, but may be made
effective at such time in excess of thirty days from the date of
adoption as specified in any rule adopting a safety and health
standard. Any rule not made effective thirty days after adoption, having a delayed effectiveness in excess of thirty days,
may only be made upon a finding made by the director that
such delayed effectiveness of the rule is reasonably necessary
to afford the affected employers a reasonable opportunity to
make changes in methods, means, or practices to meet the
requirements of the adopted rule. Temporary orders granting
a variance may be utilized by the director in lieu of the
delayed effectiveness in the adoption of any rule. [1973 c 80
§ 24.]
[Title 49 RCW—page 23]
49.17.250
49.17.250
Title 49 RCW: Labor Regulations
49.17.250 Voluntary compliance program—Consultation and advisory services. (1) In carrying out the responsibilities for the development of a voluntary compliance program under the authority of RCW 49.17.050(8) and the rendering of advisory and consultative services to employers, the
director may grant an employer's application for advice and
consultation, and for the purpose of affording such consultation and advice visit the employer's work place. Such consultation and advice shall be limited to the matters specified in
the request affecting the interpretation and applicability of
safety and health standards to the conditions, structures,
machines, equipment, apparatus, devices, materials, methods, means, and practices in the employer's work place. The
director in granting any requests for consultative or advisory
service may provide for an alternative means of affording
consultation and advice other than on-site consultation.
(2) The director, or an authorized representative, will
make recommendations regarding the elimination of any hazards disclosed within the scope of the on-site consultation.
No visit to an employer's work place shall be regarded as an
inspection or investigation under the authority of this chapter,
and no notices or citations shall be issued, nor, shall any civil
penalties be assessed upon such visit, nor shall any authorized representative of the director designated to render
advice and consult with employers under the voluntary compliance program have any enforcement authority: PROVIDED, That in the event an on-site visit discloses a serious
violation of a health and safety standard as defined in RCW
49.17.180(6), and the hazard of such violation is either not
abated by the cooperative action of the employer, or, is not
subject to being satisfactorily abated by the cooperative
action of the employer, the director shall either invoke the
administrative restraining authority provided in RCW
49.17.130 or seek the issuance of injunctive process under
the authority of RCW 49.17.170 or invoke both such remedies.
(3) Nothing in this section shall be construed as providing immunity to any employer who has made application for
consultative services during the pendency of the granting of
such application from inspections or investigations conducted under RCW 49.17.070 or any inspection conducted as
a result of a complaint, nor immunity from inspections under
RCW 49.17.070 or inspections resulting from a complaint
subsequent to the conclusion of the consultative period. This
section shall not be construed as requiring an inspection
under RCW 49.17.070 of any work place which has been visited for consultative purposes. However, in the event of a
subsequent inspection, the director, or an authorized representative, may in his or her discretion take into consideration
any information obtained during the consultation visit of that
work place in determining the nature of an alleged violation
and the amount of penalties to be assessed, if any. Such rules
and regulations to be promulgated pursuant to this section
shall provide that in all instances of serious violations as
defined in RCW 49.17.180(6) which are disclosed in any
consultative period, shall be corrected within a specified
period of time at the expiration of which an inspection will be
conducted under the authority of RCW 49.17.070. All
employers requesting consultative services shall be advised
of the provisions of this section and the rules adopted by the
director relating to the voluntary compliance program. Infor[Title 49 RCW—page 24]
mation obtained by the department as a result of employerrequested consultation and training services shall be deemed
confidential and shall not be open to public inspection.
Within thirty days of receipt, the employer shall make voluntary services reports available to employees or their collective bargaining representatives for review. Employers may
satisfy the availability requirement by requesting a copy of
the reports from the department. The director may provide by
rule for the frequency, manner, and method of the rendering
of consultative services to employers, and for the scheduling
and priorities in granting applications consistent with the
availability of personnel, and in such a manner as not to jeopardize the enforcement requirements of this chapter. [1991 c
89 § 2; 1973 c 80 § 25.]
49.17.260
49.17.260 Statistics—Investigations—Reports. In
furtherance of the objects and purposes of this chapter, the
director shall develop and maintain an effective program of
collection, compilation, and analysis of industrial safety and
health statistics. The director, or his authorized representative, shall investigate and analyze industrial catastrophes,
serious injuries, and fatalities occurring in any work place
subject to this chapter, in an effort to ascertain whether such
injury or fatality occurred as the result of a violation of this
chapter, or any safety and health standard, rule, or order promulgated pursuant to this chapter, or if not, whether a safety
and health standard or rule should be promulgated for application to such circumstances. The director shall adopt rules
relating to the conducting and reporting of such investigations. Such investigative report shall be deemed confidential
and only available upon order of the superior court after
notice to the director and an opportunity for hearing: PROVIDED, That such investigative reports shall be made available without the necessity of obtaining a court order, to
employees of governmental agencies in the performance of
their official duties, to the injured workman or his legal representative or his labor organization representative, or to the
legal representative or labor organization representative of a
deceased workman who was the subject of an investigation,
or to the employer of the injured or deceased workman or any
other employer or person whose actions or business operation
is the subject of the report of investigation, or any attorney
representing a party in any pending legal action in which an
investigative report constitutes relevant and material evidence in such legal action. [1973 c 80 § 26.]
49.17.270
49.17.270 Administration of chapter. The department
shall be the sole and paramount administrative agency
responsible for the administration of the provisions of this
chapter, and any other agency of the state or any municipal
corporation or political subdivision of the state having
administrative authority over the inspection, survey, investigation, or any regulatory or enforcement authority of safety
and health standards related to the health and safety of
employees in any work place subject to this chapter, shall be
required, notwithstanding any statute to the contrary, to exercise such authority as provided in this chapter and subject to
interagency agreement or agreements with the department
made under the authority of the interlocal cooperation act
(chapter 39.34 RCW) relative to the procedures to be fol(2004 Ed.)
Washington Industrial Safety and Health Act
lowed in the enforcement of this chapter: PROVIDED, That
in relation to employers using or possessing sources of ionizing radiation the department of labor and industries and the
department of social and health services shall agree upon
mutual policies, rules, and regulations compatible with policies, rules, and regulations adopted pursuant to chapter 70.98
RCW insofar as such policies, rules, and regulations are not
inconsistent with the provisions of this chapter. [1973 c 80 §
27.]
49.17.280
49.17.280 Agricultural workers and handlers of agricultural pesticides—Coordination of regulation and
enforcement with department of agriculture. (1) As used
in this section, "federal worker protection standard" or "federal standard" means the worker protection standard for agricultural workers and handlers of agricultural pesticides
adopted by the United States environmental protection
agency in 40 C.F.R., part 170 as it exists on June 6, 1996.
(2)(a) No rule adopted under this chapter may impose
requirements that make compliance with the federal worker
protection standard impossible.
(b) The department shall adopt by rule safety and health
standards that are at least as effective as the federal standard.
Standards adopted by the department under this section shall
be adopted in coordination with the department of agriculture.
(3) If a violation of the federal worker protection standard, or of state rules regulating activities governed by the
federal standard, is investigated by the department and by the
department of agriculture, the agencies shall conduct a joint
investigation if feasible, and shall share relevant information.
However, an investigation conducted by the department
under Title 51 RCW solely with regard to industrial insurance shall not be considered to be an investigation by the
department for this purpose. The agencies shall not issue
duplicate citations to an individual or business for the same
violation of the federal standard or state rules regulating
activities governed by the federal standard. By December 1,
1996, the department and the department of agriculture shall
jointly establish a formal agreement that: Identifies the roles
of each of the two agencies in conducting investigations of
activities governed by the federal standard; and provides for
protection of workers and enforcement of standards that is at
least as effective as provided to all workers under this chapter. The department's role under the agreement shall not
extend beyond protection of safety and health in the workplace as provided under this chapter. [1996 c 260 § 2.]
Finding—Intent—1996 c 260: "The legislature finds that the state's
highly productive and efficient agriculture sector is composed predominately
of family owned and managed farms and an industrious and efficient work
force. It is the intent of the legislature that the department of agriculture and
the department of labor and industries coordinate adoption, implementation,
and enforcement of a common set of worker protection standards related to
pesticides in order to avoid inconsistency and conflict in the application of
those rules. It is also the intent of the legislature that the department of agriculture and the department of labor and industries coordinate investigations
with the department of health as well. Further, coordination of enforcement
procedures under chapter 260, Laws of 1996 shall not reduce the effectiveness of the enforcement provisions of the Washington industrial safety and
health act of 1973 or the Washington pesticide application act. Finally, when
the department of agriculture or the department of labor and industries anticipates regulatory changes to standards regarding pesticide application and
handling, they shall involve the affected parties in the rule-making process
and solicit relevant information. The department of agriculture and the
(2004 Ed.)
49.17.310
department of labor and industries shall identify differences in their respective jurisdictions and penalty structures and publish those differences."
[1996 c 260 § 1.]
Severability—1996 c 260: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1996 c 260 § 6.]
Department of agriculture authority: RCW 17.21.440.
49.17.285
49.17.285 Medical monitoring—Records on covered
pesticides—Reports. Employers whose employees receive
medical monitoring under chapter 296-307 WAC, Part J-1,
shall submit records to the department of labor and industries
each month indicating the name of each worker tested, the
number of hours that each worker handled covered pesticides
during the thirty days prior to testing, and the number of
hours that each worker handled covered pesticides during the
current calendar year. The department of labor and industries
shall work with the department of health to correlate this data
with each employee's test results. No later than January 1,
2005, the department of labor and industries shall require
employers to report this data to the physician or other
licensed health care professional and department of health
public health laboratory or other approved laboratory when
each employee's cholinesterase test is taken. The department
shall also require employers to provide each employee who
receives medical monitoring with: (1) A copy of the data that
the employer reports for that employee upon that employee's
request; and (2) access to the records on which the employer's
report is based. [2004 c 272 § 1.]
Effective date—2004 c 272: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[April 1, 2004]." [2004 c 272 § 4.]
49.17.288
49.17.288 Cholinesterase monitoring—Reports. By
January 1, 2005, January 1, 2006, and January 1, 2007, the
department of labor and industries shall report the results of
its data collection, correlation, and analysis related to cholinesterase monitoring to the house of representatives committees on agriculture and natural resources and commerce
and labor, or their successor committees, and the senate committees on agriculture and commerce and trade, or their successor committees. These reports shall also identify any
technical issues regarding the testing of cholinesterase levels
or the administration of cholinesterase monitoring. [2004 c
272 § 2.]
Effective date—2004 c 272: See note following RCW 49.17.285.
49.17.300
49.17.300 Temporary worker housing—Electricity—Storage, handling, preparation of food—Rules. By
December 1, 1998, the department of labor and industries
shall adopt rules requiring electricity in all temporary worker
housing and establishing minimum requirements to ensure
the safe storage, handling, and preparation of food in these
camps, regardless of whether individual or common cooking
facilities are in use. [1998 c 37 § 3.]
49.17.310
49.17.310 Temporary worker housing—Licensing,
operation, and inspection—Rules—Definition. The
department and the department of health shall adopt joint
rules for the licensing, operation, and inspection of temporary
[Title 49 RCW—page 25]
49.17.320
Title 49 RCW: Labor Regulations
worker housing, and the enforcement thereof. For the purposes of this section "temporary worker housing" has the
same meaning as given in RCW 70.114A.020. [1999 c 374 §
2.]
49.17.320
49.17.320 Temporary worker housing operation
standards—Departments' agreement—Enforcement—
Definition. By December 1, 1999, the department and the
department of health shall jointly establish a formal agreement that identifies the roles of each of the two agencies with
respect to the enforcement of temporary worker housing
operation standards.
The agreement shall, to the extent feasible, provide for
inspection and enforcement actions by a single agency, and
shall include measures to avoid multiple citations for the
same violation.
For the purposes of this section, "temporary worker
housing" has the same meaning as provided in RCW
70.114A.020. [1999 c 374 § 4.]
49.17.350
49.17.350 Flaggers. (1) The director of the department
of labor and industries shall adopt permanent rules that take
effect no later than March 1, 2001, revising any safety standards governing flaggers.
(2) The transportation commission shall adopt permanent rules that take effect no later than March 1, 2001, revising any safety standards governing flaggers.
(3) The utilities and transportation commission shall
adopt permanent rules that take effect no later than March 1,
2001, revising any safety standards and employment qualifications governing flaggers.
(4) The permanent rules adopted pursuant to this section
shall be designed to improve options available to ensure the
safety of flaggers, ensure that flaggers have adequate visual
warning of objects approaching from behind them, and, with
respect to the utilities and transportation commission rules,
update employment qualifications for flaggers.
(5) In developing permanent rules adopted pursuant to
this section, state agencies and commissions shall consult
with other persons with an interest in improving safety standards and updating employment qualifications for flaggers.
State agencies and commissions shall coordinate and make
consistent, to the extent possible, permanent rules. State
agencies and commissions shall report, by April 22, 2001, to
the senate labor and workforce development committee and
the house of representatives commerce and labor committee
on the permanent rules adopted pursuant to this section.
[2000 c 239 § 2.]
Emergency rules: "(1) The director of the department of labor and
industries shall adopt emergency rules that take effect no later than June 1,
2000, revising any safety standards governing flaggers.
(2) The transportation commission shall adopt emergency rules that
take effect no later than June 1, 2000, revising any safety standards governing flaggers.
(3) The utilities and transportation commission shall adopt emergency
rules that take effect no later than June 1, 2000, revising any safety standards
governing flaggers.
(4) Notwithstanding RCW 34.05.350, the emergency rules adopted
pursuant to this section shall remain in effect or be adopted in sequence until
March 1, 2001, or the effective date of the permanent rules adopted pursuant
to RCW 49.17.350, whichever is earlier.
(5) The emergency rules adopted pursuant to this section shall be
designed to improve options available to ensure the safety of flaggers, and
[Title 49 RCW—page 26]
ensure that flaggers have adequate visual warning of objects approaching
from behind them.
(6) In developing emergency rules adopted pursuant to this section,
state agencies and commissions shall consult with other persons with an
interest in improving safety standards for flaggers. State agencies and commissions shall report, by September 15, 2000, to the senate labor and workforce development committee and the house of representatives commerce
and labor committee on the emergency rules adopted pursuant to this section." [2000 c 239 § 1.]
Effective date—2000 c 239 §§ 1 and 2: "Sections 1 and 2 of this act
are necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public institutions,
and take effect immediately [March 31, 2000]." [2000 c 239 § 9.]
Short title—2000 c 239 §§ 1 and 2: "Sections 1 and 2 of this act may
be known and cited as the "Kim Vendl Worker Safety Act."" [2000 c 239 §
10.]
Captions not law—2000 c 239: "Captions used in this act are not any
part of the law." [2000 c 239 § 11.]
49.17.360
49.17.360 Ergonomics Initiative—Intent. Washington must aid businesses in creating new jobs. Governor
Locke's competitiveness council has identified repealing the
state ergonomics regulations as a top priority for improving
the business climate and creating jobs in Washington state. A
broad coalition of democrats and republicans have introduced
bills repeatedly to bring legislative oversight to this issue.
This measure will repeal an expensive, unproven rule. This
measure will aid in creating jobs and employing the people of
Washington. [2004 c 1 § 1 (Initiative Measure No. 841,
approved November 4, 2003).]
Construction—Severability—2004 c 1 (Initiative Measure No. 841):
See notes following RCW 49.17.370.
49.17.370
49.17.370 Ergonomics Initiative—Definition—Rule
repeal. For the purposes of this section, "state ergonomics
regulations" are defined as the rules addressing musculoskeletal disorders, adopted on May 26, 2000, by the director of
the department of labor and industries, and codified as WAC
296-62-05101 through 296-62-05176. The state ergonomics
regulations, filed on May 26, 2000, by the director and codified as WAC 296-62-05101 through 296-62-05176 are
repealed. The director shall not have the authority to adopt
any new or amended rules dealing with musculoskeletal disorders, or that deal with the same or similar activities as these
rules being repealed, until and to the extent required by congress or the federal occupational safety and health administration. [2004 c 1 § 2 (Initiative Measure No. 841, approved
November 4, 2003).]
Construction—2004 c 1 (Initiative Measure No. 841): "The provisions of this act are to be liberally construed to effectuate the intent, policies,
and purposes of this act." [2004 c 1 § 3 (Initiative Measure No. 841,
approved November 4, 2003).]
Severability—2004 c 1 (Initiative Measure No. 841): "If any provision of this act or its application to any person or circumstance is held
invalid, the remainder of the act or the application of the provision to other
persons or circumstances is not affected." [2004 c 1 § 4 (Initiative Measure
No. 841, approved November 4, 2003).]
49.17.900
49.17.900 Short title. This act shall be known and cited
as the Washington Industrial Safety and Health Act of 1973.
[1973 c 80 § 29.]
49.17.910
49.17.910 Severability—1973 c 80. If any provision of
this act, or its application to any person or circumstance is
(2004 Ed.)
Safety—Health Care Settings
held invalid, the remainder of the act, or the application of the
provision to other persons or circumstances is not affected.
[1973 c 80 § 30.]
Chapter 49.19
Chapter 49.19 RCW
SAFETY—HEALTH CARE SETTINGS
Sections
49.19.005
49.19.010
49.19.020
49.19.030
49.19.040
49.19.050
49.19.060
49.19.070
Findings—1999 c 377.
Definitions.
Workplace violence plan—Security and safety assessment.
Violence prevention training.
Violent acts—Records.
Noncompliance—Penalties.
Health care setting—Assistance.
Intent—Finding—Enforcement.
49.19.005
49.19.005 Findings—1999 c 377. The legislature finds
that:
(1) Violence is an escalating problem in many health
care settings in this state and across the nation;
(2) Based on an analysis of workers' compensation
claims, the department of labor and industries reports that
health care employees face the highest rate of workplace violence in Washington state;
(3) The actual incidence of workplace violence in health
care settings is likely to be greater than documented because
of failure to report or failure to maintain records of incidents
that are reported;
(4) Patients, visitors, and health care employees should
be assured a reasonably safe and secure environment in
health care settings; and
(5) Many health care settings have undertaken efforts to
assure that patients, visitors, and employees are safe from
violence, but additional personnel training and appropriate
safeguards may be needed to prevent workplace violence and
minimize the risk and dangers affecting people in health care
settings. [1999 c 377 § 1.]
49.19.010
49.19.010 Definitions. For purposes of this chapter:
(1) "Health care setting" means:
(a) Hospitals as defined in RCW 70.41.020;
(b) Home health, hospice, and home care agencies under
chapter 70.127 RCW, subject to RCW 49.19.070;
(c) Evaluation and treatment facilities as defined in
*RCW 71.05.020(12); and
(d) Community mental health programs as defined in
RCW 71.24.025(5).
(2) "Department" means the department of labor and
industries.
(3) "Employee" means an employee as defined in RCW
49.17.020.
(4) "Violence" or "violent act" means any physical
assault or verbal threat of physical assault against an
employee of a health care setting. [2000 c 94 § 18; 1999 c
377 § 2.]
*Reviser's note: "Evaluation and treatment facility" is defined in RCW
71.05.020(13).
49.19.020
49.19.020 Workplace violence plan—Security and
safety assessment. (1) By July 1, 2000, each health care setting shall develop and implement a plan to reasonably pre(2004 Ed.)
49.19.030
vent and protect employees from violence at the setting. The
plan shall address security considerations related to the following items, as appropriate to the particular setting, based
upon the hazards identified in the assessment required under
subsection (2) of this section:
(a) The physical attributes of the health care setting;
(b) Staffing, including security staffing;
(c) Personnel policies;
(d) First aid and emergency procedures;
(e) The reporting of violent acts; and
(f) Employee education and training.
(2) Before the development of the plan required under
subsection (1) of this section, each health care setting shall
conduct a security and safety assessment to identify existing
or potential hazards for violence and determine the appropriate preventive action to be taken. The assessment shall
include, but is not limited to, a measure of the frequency of,
and an identification of the causes for and consequences of,
violent acts at the setting during at least the preceding five
years or for the years records are available for assessments
involving home health, hospice, and home care agencies.
(3) In developing the plan required by subsection (1) of
this section, the health care setting may consider any guidelines on violence in the workplace or in health care settings
issued by the department of health, the department of social
and health services, the department of labor and industries,
the federal occupational safety and health administration,
medicare, and health care setting accrediting organizations.
[1999 c 377 § 3.]
49.19.030 Violence prevention training. By July 1,
2001, and on a regular basis thereafter, as set forth in the plan
developed under RCW 49.19.020, each health care setting
shall provide violence prevention training to all its affected
employees as determined by the plan. The training shall
occur within ninety days of the employee's initial hiring date
unless he or she is a temporary employee. For temporary
employees, training would take into account unique circumstances. The training may vary by the plan and may include,
but is not limited to, classes, videotapes, brochures, verbal
training, or other verbal or written training that is determined
to be appropriate under the plan. The training shall address
the following topics, as appropriate to the particular setting
and to the duties and responsibilities of the particular
employee being trained, based upon the hazards identified in
the assessment required under RCW 49.19.020:
(1) General safety procedures;
(2) Personal safety procedures;
(3) The violence escalation cycle;
(4) Violence-predicting factors;
(5) Obtaining patient history from a patient with violent
behavior;
(6) Verbal and physical techniques to de-escalate and
minimize violent behavior;
(7) Strategies to avoid physical harm;
(8) Restraining techniques;
(9) Appropriate use of medications as chemical
restraints;
(10) Documenting and reporting incidents;
(11) The process whereby employees affected by a violent act may debrief;
49.19.030
[Title 49 RCW—page 27]
49.19.040
Title 49 RCW: Labor Regulations
(12) Any resources available to employees for coping
with violence; and
(13) The health care setting's workplace violence prevention plan. [1999 c 377 § 4.]
49.19.040
49.19.040 Violent acts—Records. Beginning no later
than July 1, 2000, each health care setting shall keep a record
of any violent act against an employee, a patient, or a visitor
occurring at the setting. At a minimum, the record shall
include:
(1) The health care setting's name and address;
(2) The date, time, and specific location at the health care
setting where the act occurred;
(3) The name, job title, department or ward assignment,
and staff identification or social security number of the victim if an employee;
(4) A description of the person against whom the act was
committed as:
(a) A patient;
(b) A visitor;
(c) An employee; or
(d) Other;
(5) A description of the person committing the act as:
(a) A patient;
(b) A visitor;
(c) An employee; or
(d) Other;
(6) A description of the type of violent act as a:
(a) Threat of assault with no physical contact;
(b) Physical assault with contact but no physical injury;
(c) Physical assault with mild soreness, surface abrasions, scratches, or small bruises;
(d) Physical assault with major soreness, cuts, or large
bruises;
(e) Physical assault with severe lacerations, a bone fracture, or a head injury; or
(f) Physical assault with loss of limb or death;
(7) An identification of any body part injured;
(8) A description of any weapon used;
(9) The number of employees in the vicinity of the act
when it occurred; and
(10) A description of actions taken by employees and the
health care setting in response to the act. Each record shall be
kept for at least five years following the act reported, during
which time it shall be available for inspection by the department upon request. [1999 c 377 § 5.]
49.19.050
49.19.050 Noncompliance—Penalties. Failure of a
health care setting to comply with this chapter shall subject
the setting to citation under chapter 49.17 RCW. [1999 c 377
§ 6.]
49.19.060
49.19.060 Health care setting—Assistance. A health
care setting needing assistance to comply with this chapter
may contact the federal department of labor or the state
department of labor and industries for assistance. The state
departments of labor and industries, social and health services, and health shall collaborate with representatives of
health care settings to develop technical assistance and training seminars on plan development and implementation, and
[Title 49 RCW—page 28]
shall coordinate their assistance to health care settings. [1999
c 377 § 7.]
49.19.070
49.19.070 Intent—Finding—Enforcement. It is the
intent of the legislature that any violence protection and prevention plan developed under this chapter be appropriate to
the setting in which it is to be implemented. To that end, the
legislature recognizes that not all professional health care is
provided in a facility or other formal setting, such as a hospital. Many services are provided by home health, hospice, and
home care agencies. The legislature finds that it is inappropriate and impractical for these agencies to address workplace
violence in the same manner as other, facility-based, health
care settings. When enforcing this chapter as to home health,
hospice, and home care agencies, the department shall allow
agencies sufficient flexibility in recognition of the unique circumstances in which these agencies deliver services. [1999 c
377 § 8.]
Chapter 49.22
Chapter 49.22 RCW
SAFETY—CRIME PREVENTION
Sections
49.22.010
49.22.020
49.22.030
49.22.900
Definitions.
Late night retail establishments—Duties.
Enforcement.
Effective date—Implementation—1989 c 357.
49.22.010
49.22.010 Definitions. As used in this chapter, the following terms have the meanings indicated unless the context
clearly requires otherwise.
(1) "Department" means the department of labor and
industries.
(2) "Late night retail establishment" means any business
or commercial establishment making sales to the public
between the hours of eleven o'clock p.m. and six o'clock a.m.,
except restaurants, hotels, taverns, or any lodging facility.
(3) "Employer" means the operator, lessee, or franchisee
of a late night retail establishment. [1989 c 357 § 1.]
49.22.020
49.22.020 Late night retail establishments—Duties.
In addition to providing crime prevention training as provided in *section 2 of this act, all employers operating late
night retail establishments shall:
(1) Post a conspicuous sign in the window or door which
states that there is a safe on the premises and it is not accessible to the employees on the premises and that the cash register contains only the minimal amount of cash needed to conduct business: PROVIDED, That an employer shall not be
subject to penalties under RCW 49.22.030 for having moneys
in the cash register in excess of the minimal amount needed
to conduct business;
(2) So arrange all material posted in the window or door
so as to provide a clear and unobstructed view of the cash register, provided the cash register is otherwise in a position visible from the street;
(3) Have a drop-safe, limited access safe, or comparable
device on the premises; and
(4) Operate the outside lights for that portion of the parking area that is necessary to accommodate customers during
all night hours the late night retail establishment is open, if
(2004 Ed.)
Health and Safety—Underground Workers
the late night retail establishment has a parking area for its
customers. [1989 c 357 § 3.]
*Reviser's note: "Section 2 of this act" was vetoed by the governor.
49.22.030
49.22.030 Enforcement. The requirements of this
chapter shall be implemented and enforced, including rules,
citations, violations, penalties, appeals, and other administrative procedures by the director of the department of labor and
industries pursuant to the Washington industrial safety and
health act of 1973, chapter 49.17 RCW. [1989 c 357 § 4.]
49.22.900
49.22.900 Effective date—Implementation—1989 c
357. This act shall take effect January 1, 1990. The director
of the department of labor and industries may immediately
take such steps as are necessary to ensure that this act is
implemented on its effective date. [1989 c 357 § 7.]
Chapter 49.24
Chapter 49.24 RCW
HEALTH AND SAFETY—
UNDERGROUND WORKERS
Sections
49.24.010
49.24.020
49.24.030
49.24.040
49.24.060
49.24.070
49.24.080
49.24.100
49.24.110
49.24.120
49.24.130
49.24.140
49.24.150
49.24.160
49.24.170
49.24.180
49.24.190
49.24.200
49.24.210
49.24.220
49.24.230
49.24.240
49.24.250
49.24.260
49.24.270
49.24.280
49.24.290
49.24.300
49.24.310
49.24.320
49.24.330
49.24.340
49.24.350
49.24.360
49.24.370
49.24.380
Pressure defined.
Compressed air safety requirements.
Medical and nursing attendants.
Examination as to physical fitness.
Penalty.
Enforcement.
Requirements for underground labor.
Lighting appliances.
Exhaust valves.
Fire prevention.
Air chambers—Hanging walks.
Locks.
Explosives and detonators.
Air plant—Feed water.
Electric power requirements.
Inspection.
Cars, cages, buckets—Employees riding or walking.
Speed of vehicles.
Oil supply restricted.
Explosives, use of—Blasting.
Firing switch—Warning by blaster.
Inspection after blast.
Code of signals.
Requirements as to caissons.
Shields to be provided.
Caissons to be braced.
Cages—Hoisting apparatus.
Buckets in vertical shafts.
Telephone system for tunnels.
Location of lights.
Generators, transformers, etc., to be grounded.
Electrical voltage.
Lamps to be held in reserve.
Insulators required.
Director to make rules and regulations.
Penalty.
Coal mining code: Title 78 RCW.
Protection of employees: State Constitution Art. 2 § 35.
49.24.060
(1) Connect at least two air pipes with the working
chamber and keep such pipes in perfect working condition;
(2) Attach to the working chamber in accessible positions all instruments necessary to show its pressure and keep
such instruments in charge of competent persons, with a
period of duty for each such person not exceeding six hours
in any twenty-four;
(3) Place in each shaft a safe ladder extending its entire
length;
(4) Light properly and keep clear such passageway;
(5) Provide independent lighting systems for the working chamber and shaft leading to it, when electricity is used
for lighting;
(6) Guard lights other than electric lights;
(7) Protect workmen by a shield erected in the working
chamber when such chamber is less than ten feet long and is
suspended with more than nine feet space between its deck
and the bottom of the excavation;
(8) Provide for and keep accessible to employees working in compressed air a dressing room heated, lighted and
ventilated properly and supplied with benches, lockers, sanitary waterclosets, bathing facilities and hot and cold water;
(9) Establish and maintain a medical lock properly
heated, lighted, ventilated and supplied with medicines and
surgical implements, when the maximum air pressure
exceeds seventeen pounds. [1937 c 131 § 2; RRS § 7666-2.]
49.24.030
49.24.030 Medical and nursing attendants. Every
employer of persons for work in compressed air shall:
(1) Keep at the place of work at all necessary times a
duly qualified medical officer to care for cases of illness and
to administer strictly and enforce RCW 49.24.020 and
49.24.040;
(2) Keep at a medical lock required by RCW
49.24.020(9) a certified nurse selected by the medical officer
required by subdivision (1) of this section and qualified to
give temporary relief in cases of illness. [1937 c 131 § 3;
RRS § 7666-3.]
49.24.040
49.24.040 Examination as to physical fitness. If an
employee is a new employee, an absentee for ten or more successive days, an employee who has worked in compressed air
continuously for three months or a beginner in compressed
air who has worked but a single shaft [shift] as required by
*RCW 49.24.050, the officer required by RCW 49.24.030(1)
shall examine him and declare him physically fit to work in
compressed air before permitting him to enter or reenter the
working chamber. Excessive users of intoxicants shall not be
permitted to work in compressed air. [1937 c 131 § 4; RRS §
7666-4.]
*Reviser's note: RCW 49.24.050 was repealed by 1963 c 105 § 1.
Supervisor of safety: RCW 43.22.040.
49.24.060
49.24.010
49.24.010 Pressure defined. The term "pressure"
means gauge air pressure in pounds per square inch. [1937 c
131 § 1; RRS § 7666-1.]
49.24.020
49.24.020 Compressed air safety requirements.
Every employer of persons for work in compressed air shall:
(2004 Ed.)
49.24.060 Penalty. Violation of or noncompliance with
any provision of *this article by any employer, manager,
superintendent, foreman or other person having direction or
control of such work shall be a gross misdemeanor punishable by a fine of not less than two hundred and fifty dollars or
by imprisonment for not more than one year or by both such
fine and imprisonment. [1937 c 131 § 7; RRS § 7666-7.]
[Title 49 RCW—page 29]
49.24.070
Title 49 RCW: Labor Regulations
*Reviser's note: "this article" appears in 1937 c 131, an eight section
act that was not subdivided by "article" organization. The act is codified as
RCW 49.24.010 through 49.24.070.
49.24.070
49.24.070 Enforcement. The director of labor and
industries shall have the power and it shall be the director's
duty to enforce the provisions of RCW 49.24.010 through
49.24.070. Any authorized inspector or agent of the department may issue and serve upon the employer or person in
charge of such work, an order requiring compliance with a
special provision or specific provisions of RCW 49.24.010
through 49.24.070 and directing the discontinuance of any
employment of persons in compressed air in connection with
such work until such specific provision or provisions have
been complied with by such employer to the satisfaction of
the department. [1994 c 164 § 23; 1973 1st ex.s. c 52 § 7;
1937 c 131 § 8; RRS § 7666-8.]
Effective date—1973 1st ex.s. c 52: See note following RCW
43.22.010.
49.24.080
49.24.080 Requirements for underground labor.
Every person, firm or corporation constructing, building or
operating a tunnel, quarry, caisson or subway, excepting in
connection with mines, with or without compressed air, shall
in the employment of any labor comply with the following
safety provisions:
(1) A safety miner shall be selected by the crew on each
shift who shall check the conditions necessary to make the
working place safe; such as loose rock, faulty timbers, poor
rails, lights, ladders, scaffolds, fan pipes and firing lines.
(2) Ventilating fans shall be installed from twenty-five to
one hundred feet outside the portal.
(3) No employee shall be allowed to "bar down" without
the assistance of another employee.
(4) No employee shall be permitted to return to the heading until at least thirty minutes after blasting.
(5) Whenever persons are employed in wet places, the
employer shall furnish such persons with rubbers, boots,
coats and hats. All boots if worn previously by an employee
shall be sterilized before being furnished to another: PROVIDED, That RCW 49.24.080 through 49.24.380 shall not
apply to the operation of a railroad except that new construction of tunnels, caissons or subways in connection therewith
shall be subject to the provisions of RCW 49.24.080 through
49.24.380: PROVIDED, FURTHER, That in the event of
repair work being done in a railroad tunnel, no person shall be
compelled to perform labor until the air has been cleared of
smoke, gas and fumes. [1973 1st ex.s. c 154 § 89; 1965 c 144
§ 1; 1941 c 194 § 1; Rem. Supp. 1941 § 7666-9.]
Severability—1973 1st ex.s. c 154: See note following RCW 2.12.030.
49.24.100
49.24.100 Lighting appliances. (1) All lighting in
compressed air chambers shall be by electricity only. Wherever practicable there shall be two independent lighting systems with independent sources of supply.
(2) The exterior of all lamp sockets shall be entirely nonmetallic.
(3) All portable incandescent lamps used shall be
guarded by a wire cage large enough to enclose both lamp
and socket.
[Title 49 RCW—page 30]
(4) All incandescent lamps shall be so placed that they
cannot come in contact with any combustible material.
(5) Only heavy insulated or armored wire shall be used
for light or power. [1941 c 194 § 3; Rem. Supp. 1941 § 766611.]
49.24.110
49.24.110 Exhaust valves. Exhaust valves shall be provided, having risers extending to the upper part of chamber, if
necessary, and shall be operated at such times as may be
required and especially after a blast, and persons shall not be
required to resume work after a blast until the gas and smoke
have cleared, for at least thirty minutes. [1973 1st ex.s. c 154
§ 90; 1941 c 194 § 4; Rem. Supp. 1941 § 7666-12.]
Severability—1973 1st ex.s. c 154: See note following RCW 2.12.030.
49.24.120
49.24.120 Fire prevention. All reasonable precaution
shall be taken against fire, and provisions shall be made so
that water lines shall be available for use at all times. Fire
hose connections with hose connected shall be installed in all
power plants and work houses. There shall be fire hose connections within reasonable distance of all caissons. Fire hose
shall be connected at either side of a tunnel bulkhead, with at
least fifty feet of hose with nozzle connection. Water lines
shall extend into each tunnel with hose connections every
two hundred feet and shall be kept ready for use at all times.
[1941 c 194 § 5; Rem. Supp. 1941 § 7666-13.]
49.24.130
49.24.130 Air chambers—Hanging walks. (1) Whenever the air pressure in a tunnel heading exceeds twenty-one
pounds per square inch above atmospheric pressure, two air
chambers shall always be in use, except for such time as may
be necessary when headings are being started from shafts;
and whenever practicable the pressure in the outer chamber
shall not exceed one-half the pressure in the heading;
(2) In all tunnels sixteen feet in diameter or over, hanging walks shall be provided from working face to nearest
lock. An overhead clearance of six feet shall be maintained
and suitable ramps provided under all safety screens. [1941 c
194 § 6; Rem. Supp. 1941 § 7666-14.]
49.24.140
49.24.140 Locks. (1) Each bulkhead in tunnels of
twelve feet or more in diameter or equivalent area, shall have
at least two locks in perfect working condition, one of which
shall be used as a man lock. An additional lock for use in case
of emergency shall be held in reserve.
(2) The man lock shall be large enough so that those
using it are not compelled to be in a cramped position, and
shall not be less than five feet in height. Emergency locks
shall be large enough to hold an entire heading shift.
(3) All locks used for decompression shall be lighted by
electricity and shall contain a pressure gauge, a time piece, a
glass "bull's eye" in each door or in each end, and shall also
have facilities for heating.
(4) Valves shall be so arranged that the locks can be
operated both from within and from without. [1941 c 194 §
7; Rem. Supp. 1941 § 7666-15.]
49.24.150
49.24.150 Explosives and detonators. When locking
explosives and detonators into the air chamber, they shall be
kept at opposite ends of the lock. While explosives and deto(2004 Ed.)
Health and Safety—Underground Workers
nators are being taken through, no men other than the lock
tender and the carriers shall be permitted in the lock. [1941 c
194 § 8; Rem. Supp. 1941 § 7666-16.]
49.24.220
49.24.200 Speed of vehicles. No vehicle shall be operated underground at a speed greater than five miles an hour,
while construction work is going on. [1941 c 194 § 13; Rem.
Supp. 1941 § 7666-21.]
49.24.200
49.24.160
49.24.160 Air plant—Feed water. (1) A good and sufficient air plant for the compression of air shall be provided to
meet not only ordinary conditions, but emergencies, and to
provide margin for repairs at all times. Provision must be
made for storing in tanks at each boiler house enough feed
water for twelve hours' supply unless connection can be made
with two independent and separately sufficient sources of
supply.
(2) The plant shall be capable of furnishing to each
working chamber a sufficient air supply for all pressure to
enable work to be done. [1941 c 194 § 9; Rem. Supp. 1941 §
7666-17.]
49.24.170
49.24.170 Electric power requirements. When electric power is used for running compressors supplying air for
compressed air tunnel work and such power is purchased
from a local central station or power company—
(1) There shall be two or more sources of power from the
power company's stations to the compressor plant. Such
power feeders shall each have a capacity large enough to
carry the entire compressor plant load and normal overload.
The feeders shall preferably run from separate generating
plants or substations and be carried to the compressor plant
over separate routes and not through the same duct lines and
manholes so that the breakdown of one feeder shall not cause
an interruption on the other feeder.
(2) There shall be duplicate feeder bus-bars, and feeder
connections to the bus-bars shall be such that either feeder
can feed to each separate bus-bar set, individually, or simultaneously to both sets.
(3) There shall be at least two compressors so connected
to the bus-bars that they can be operated from either set of
busses. The compressors shall be fed from different bus-bar
sets, in such a way that a breakdown of a feeder or bus-bar
would interrupt the operation of only part of the compressor
plant.
(4) Duplicate air feed pipes shall be provided from the
compressor plant to a point beyond the lock. [1941 c 194 §
10; Rem. Supp. 1941 § 7666-18.]
49.24.180
49.24.180 Inspection. While work is in progress, the
employer shall employ a competent person who shall make a
regular inspection at least once every working day of all
engines, boilers, steam pipes, drills, air pipes, air gauges, air
locks, dynamos, electric wiring, signaling apparatus, brakes,
cages, buckets, hoists, cables, ropes, timbers, supports, and
all other apparatus and appliances; and he shall immediately
upon discovery of any defect, report same in writing to the
employer, or his agent in charge. [1941 c 194 § 11; Rem.
Supp. 1941 § 7666-19.]
49.24.190
49.24.190 Cars, cages, buckets—Employees riding or
walking. No employee shall ride on any loaded car, cage or
bucket, nor walk up or down any incline or shaft while any
car, cage or bucket is above him. [1941 c 194 § 12; Rem.
Supp. 1941 § 7666-20.]
(2004 Ed.)
49.24.210
49.24.210 Oil supply restricted. Oil for illumination or
power shall not be taken into the underground workings of
any tunnel or kept therein in greater quantities than one day's
supply. [1941 c 194 § 14; Rem. Supp. 1941 § 7666-22.]
49.24.220 Explosives, use of—Blasting. (1) No greater
quantity of explosives than that which is required for immediate use shall be taken into the working chamber.
(2) Explosives shall be conveyed in a suitable covered
wooden box.
(3) Detonators shall be conveyed in a separate covered
wooden box.
(4) Explosives and detonators shall be taken separately
into the caissons.
(5) After blasting is completed, all explosives and detonators shall be returned at once to the magazine.
(6) No naked light shall be used in the vicinity of open
chests or magazines containing explosives, nor near where a
charge is being primed.
(7) No tools or other articles shall be carried with the
explosives or with the detonators.
(8) All power lines and electric light wires shall be disconnected at a point outside the blasting switch before the
loading of holes. No current by grounding of power or
bonded rails shall be allowed beyond blasting switch after
explosives are taken in preparatory to blasting, and under no
circumstances shall grounded current be used for exploding
blasts.
(9) Before drilling is commenced on any shift, all
remaining holes shall be examined with a wooden stick for
unexploded charges or cartridges, and if any are found, same
shall be refired before work proceeds.
(10) No person shall be allowed to deepen holes that
have previously contained explosives.
(11) All wires in broken rock shall be carefully traced
and search made for unexploded cartridges.
(12) Whenever blasting is being done in a tunnel, at
points liable to break through to where other men are at work,
the foreman or person in charge shall, before any holes are
loaded, give warning of danger to all persons that may be
working where the blasts may break through, and he shall not
allow any holes to be charged until warning is acknowledged
and men are removed.
(13) Blasters when testing circuit through charged holes
shall use sufficient leading wires to be at a safe distance and
shall use only approved types of galvanometers. No tests of
circuits in charged holes shall be made until men are removed
to safe distance.
(14) No blasts shall be fired with fuse, except electrically
ignited fuse, in vertical or steep shafts.
(15) In shaft sinking where the electric current is used for
firing, a separate switch not controlling any electric lights
must be used for blasting and proper safeguard similar to
those in tunnels must be followed in order to insure against
premature firing. [1941 c 194 § 15; Rem. Supp. 1941 § 766623.]
49.24.220
[Title 49 RCW—page 31]
49.24.230
Title 49 RCW: Labor Regulations
Explosives: Chapter 70.74 RCW.
49.24.230
49.24.230 Firing switch—Warning by blaster. When
firing by electricity from power or lighting wires, a proper
switch shall be furnished with lever down when "off".
The switch shall be fixed in a locked box to which no
person shall have access except the blaster. There shall be
provided flexible leads or connecting wires not less than five
feet in length with one end attached to the incoming lines and
the other end provided with plugs that can be connected to an
effective ground. After blasting, the switch lever shall be
pulled out, the wires disconnected and the box locked before
any person shall be allowed to return, and shall remain so
locked until again ready to blast.
In the working chamber all electric light wires shall be
provided with a disconnecting switch, which must be thrown
to disconnect all current from the wires in the working chamber before electric light wires are removed or the charge
exploded.
Before blasting the blaster shall cause a sufficient warning to be sounded and shall compel all persons to retreat to a
safe shelter, before he sets off the blast, and shall permit no
one to return until conditions are safe. [1941 c 194 § 16;
Rem. Supp. 1941 § 7666-24.]
49.24.240
49.24.240 Inspection after blast. (1) After a blast is
fired, loosened pieces of rock shall be scaled from the sides of
the excavation and after the blasting is completed, the entire
working chamber shall be thoroughly scaled.
(2) The person in charge shall inspect the working chamber and have all loose rock or ground removed and the chamber made safe before proceeding with the work.
(3) Drilling must not be started until all remaining butts
of old holes are examined for unexploded charges. [1941 c
194 § 17; Rem. Supp. 1941 § 7666-25.]
49.24.250
49.24.250 Code of signals. Any code of signals used
shall be printed and copies thereof, in such languages as may
be necessary to be understood by all persons affected thereby,
shall be kept posted in a conspicuous place near entrances to
work places and in such other places as may be necessary to
bring them to the attention of all persons affected thereby.
Effective and reliable signaling devices shall be maintained at all times to give instant communication between the
bottom and top of the shaft. [1941 c 194 § 18; Rem. Supp.
1941 § 7666-26.]
49.24.260
49.24.260 Requirements as to caissons. All shafting
used in pneumatic caissons shall be provided with ladders,
which are to be kept clear and in good condition at all times.
The distance between the centers of the rungs of a ladder
shall not exceed fourteen inches and shall not vary more than
one inch in any one piece of shafting. The length of the ladder
rungs shall not be less than nine inches. The rungs of the ladder shall in no case be less than three inches from the wall or
other obstruction in the shafting or opening in which the ladder shall be used. Under no circumstances shall a ladder
inclining backward from the vertical be installed. A suitable
ladder shall be provided from the top of all locks to the surface.
[Title 49 RCW—page 32]
All man shafts shall be lighted at a distance of every ten
feet with a guarded incandescent lamp.
All outside caisson air locks shall be provided with a
platform not less than forty-two inches wide, and provided
with a guard rail forty-two inches high.
All caissons in which fifteen or more men are employed
shall have two locks, one of which shall be used as a man
lock. Man locks and man shafts shall be in charge of a man
whose duty it shall be to operate said lock and shaft. All caissons more than ten feet in diameter shall be provided with a
separate man shaft, which shall be kept clear and in operating
order at all times.
Locks shall be so located that the distance between the
bottom door and water level shall be not less than three feet.
[1941 c 194 § 19; Rem. Supp. 1941 § 7666-27.]
49.24.270
49.24.270 Shields to be provided. Wherever, in the
prosecution of caisson work in which compressed air is
employed, the working chamber is less than twelve feet in
length, and when such caissons are at any time suspended or
hung while work is in progress, so that the bottom of the
excavation is more than nine feet below the deck of the working chamber, a shield shall be erected therein for the protection of the workers. [1989 c 12 § 15; 1941 c 194 § 20; Rem.
Supp. 1941 § 7666-28.]
49.24.280
49.24.280 Caissons to be braced. All caissons shall be
properly and adequately braced before loading with concrete
or other weight. [1941 c 194 § 21; Rem. Supp. 1941 § 766629.]
49.24.290
49.24.290 Cages—Hoisting apparatus. In all shafts
where men are hoisted or lowered, an iron-bonneted cage
shall be used for the conveyance of men, but this provision
shall not apply to shafts in the process of sinking or during the
dismantling of the shaft after work in the tunnel is substantially completed.
Cages shall be provided with bonnets consisting of two
steel plates not less than three-sixteenths of an inch in thickness, sloping toward each side and so arranged that they may
be readily pushed upward to afford egress to persons therein,
and such bonnet shall cover the top of the cage in such manner as to protect persons in the cage from falling objects.
Cages shall be entirely enclosed on two sides with solid
partition or wire mesh not less than No. 8 U.S. Standard
gauge, no opening in which shall exceed two inches.
Cages shall be provided with hanging chains or other
similar devices for hand holds.
Every cage shall be provided with an approved safety
catch of sufficient strength to hold the cage with its maximum
load at any point in the shaft.
All parts of the hoisting apparatus, cables, brakes, guides
and fastenings shall be of the most substantial design and
shall be arranged for convenient inspection. The efficiency of
all safety devices shall be established by satisfactory tests
before the cages are put into service and at least once every
three months thereafter and a record thereof kept.
The test of the safety catch shall consist of releasing the
cage suddenly in such manner that the safety catches shall
(2004 Ed.)
Health and Safety—Asbestos
have opportunity to grip the guides. [1941 c 194 § 22; Rem.
Supp. 1941 § 7666-30.]
49.26.013
(2) Cables and wires unprovided with metallic coverings
shall not be fixed to walls or timbers by means of uninsulated
fastenings. [1941 c 194 § 29; Rem. Supp. 1941 § 7666-37.]
49.24.300
49.24.300 Buckets in vertical shafts. In all vertical
shafts in which hoisting is done by means of a bucket, suitable guides shall be provided when the depth exceeds ten
times the diameter or width of the shaft, but in no case shall
the maximum depth without guides exceed one hundred and
fifty feet. In connection with the bucket, there shall be a
crosshead traveling between these guides. The height of the
crosshead shall be at least two-thirds of its width, but the
height in no case shall be less than thirty inches. [1941 c 194
§ 23; Rem. Supp. 1941 § 7666-31.]
49.24.310
49.24.310 Telephone system for tunnels. Where tunnels are driven from shafts more than two hundred and fifty
feet deep, a telephone system shall be established and maintained, communicating with the surface at each such shaft,
and with a station or stations readily and quickly accessible to
the men at the working level. [1941 c 194 § 24; Rem. Supp.
1941 § 7666-32.]
49.24.370 Director to make rules and regulations.
The director of labor and industries shall establish such rules
and regulations as he deems primarily necessary for the
safety of the employees employed in tunnels, quarries, caissons and subways and shall be guided by the most modern
published studies and researches made by persons or institutions into the correction of the evils chargeable to improper
safeguards and inspection of the tools, machinery, equipment
and places of work obtaining in the industries covered by
RCW 49.24.080 through 49.24.380. [1941 c 194 § 32; Rem.
Supp. 1941 § 7666-39.]
49.24.370
49.24.380 Penalty. Every person violating any of the
provisions of RCW 49.24.080 through 49.24.380 shall be
guilty of a misdemeanor. [1941 c 194 § 31; Rem. Supp. 1941
§ 7666-38.]
49.24.380
Chapter 49.26
49.24.320
49.24.320 Location of lights. (1) While work is in
progress, tunnels, stairways, ladderways and all places on the
surface where work is being conducted, shall be properly
lighted. In shafts more than one hundred feet deep, the shaft
below that point shall be lighted.
(2) All places where hoisting, pumping or other machinery is erected and in the proximity of which persons are
working or moving about, shall be so lighted when the
machine is in operation that the moving parts of such
machine can be clearly distinguished. [1941 c 194 § 25;
Rem. Supp. 1941 § 7666-33.]
49.24.330
49.24.330 Generators, transformers, etc., to be
grounded. The frames and bed plates of generators, transformers, compensators, rheostats and motors installed underground shall be effectively grounded. All metallic coverings,
armoring of cables, other than trailing cables, and the neutral
wire of three-wire systems shall also be so grounded. [1941
c 194 § 26; Rem. Supp. 1941 § 7666-34.]
49.24.340
49.24.340 Electrical voltage. In electrical systems
installed, no higher voltage than low voltage shall be used
underground, except for transmission or other application to
transformers, motors, generators or other apparatus in which
the whole of the medium or high voltage apparatus is stationary. [1941 c 194 § 27; Rem. Supp. 1941 § 7666-35.]
Chapter 49.26 RCW
HEALTH AND SAFETY—ASBESTOS
Sections
49.26.010
49.26.013
49.26.016
49.26.020
49.26.030
49.26.040
49.26.100
49.26.110
49.26.115
49.26.120
49.26.125
49.26.130
49.26.140
49.26.150
49.26.900
49.26.901
Legislative declaration.
Inspection of construction projects required.
Inspection of construction projects—Penalties.
Asbestos use standards.
Containers for asbestos products.
Regulations—Enforcement.
Asbestos projects—Definitions.
Asbestos projects—Worker's and supervisor's certificates.
Asbestos abatement projects—Contractor's certificate
required.
Asbestos projects—Qualified asbestos workers and supervisor—Prenotification to department—Fire personnel.
Prenotification to department—Exemptions.
Asbestos projects—Rules—Fees—Asbestos account.
Asbestos projects—Enforcement—Penalties.
Discrimination against employee filing complaint prohibited.
Severability—1973 c 30.
Effective dates—1988 c 271 §§ 6-18.
49.26.010 Legislative declaration. Air-borne asbestos
dust and particles, such as those from sprayed asbestos slurry,
asbestos-coated ventilating ducts, and certain other applications of asbestos are known to produce irreversible lung damage and bronchogenic carcinoma. One American of every
four dying in urban areas of the United States has asbestos
particles or dust in his lungs. The nature of this problem is
such as to constitute a hazard to the public health and safety,
and should be brought under appropriate regulation. [1973 c
30 § 1.]
49.26.010
49.24.350
49.24.350 Lamps to be held in reserve. Lamps or
other proper lights shall be kept ready for use in all underground stations where a failure of electric light is likely to
cause danger. [1941 c 194 § 28; Rem. Supp. 1941 § 766636.]
49.24.360
49.24.360 Insulators required. (1) All underground
cables and wires, unless provided with grounded metallic
covering, shall be supported by efficient insulators. The conductors connecting lamps to the power supply shall in all
cases be insulated.
(2004 Ed.)
49.26.013 Inspection of construction projects
required. (1) Any owner or owner's agent who allows or
authorizes any construction, renovation, remodeling, maintenance, repair, or demolition project which has a reasonable
possibility, as defined by the department, of disturbing or
releasing asbestos into the air, shall perform or cause to be
performed, using practices approved by the department, a
good faith inspection to determine whether the proposed
project will disturb or release any material containing asbestos into the air.
49.26.013
[Title 49 RCW—page 33]
49.26.016
Title 49 RCW: Labor Regulations
Such inspections shall be conducted by persons meeting
the accreditation requirements of the federal toxics substances control act, section 206(a) (1) and (3) (15 U.S.C.
2646(a) (1) and (3)).
An inspection under this section is not required if the
owner or owner's agent is reasonably certain that asbestos
will not be disturbed or assumes that asbestos will be disturbed by a project which involves construction, renovation,
remodeling, maintenance, repair, or demolition and takes the
maximum precautions as specified by all applicable federal
and state requirements.
(2) Except as provided in RCW 49.26.125, the owner or
owner's agent shall prepare and maintain a written report
describing each inspection, or a statement of assumption of
the presence or reasonable certainty of the absence of asbestos, and shall provide a copy of the written report or statement
to all contractors before they apply or bid on work. In addition, upon written or oral request, the owner or owner's agent
shall make a copy of the written report available to: (1) The
department of labor and industries; (2) contractors; and (3)
the collective bargaining representatives or employee representatives, if any, of employees who may be exposed to any
asbestos or material containing asbestos. A copy shall be
posted as prescribed by the department in a place that is easily accessible to such employees. [1995 c 218 § 1; 1989 c 154
§ 2. Prior: 1988 c 271 § 7.]
Purpose—1989 c 154: "The purpose of chapter 154, Laws of 1989 is to
make corrections to chapter 271, Laws of 1988, and to ensure that the
changes made in that chapter meet the constitutional requirements of Article
II, section 19 of the state Constitution." [1989 c 154 § 1.]
Severability—1989 c 154: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1989 c 154 § 14.]
adopted under this chapter shall be revoked for a period of
not less than six months.
(4) The penalties imposed in this section are in addition
to any penalties under RCW 49.26.140. [1995 c 218 § 2;
1989 c 154 § 3. Prior: 1988 c 271 § 8.]
Purpose—Severability—1989 c 154: See notes following RCW
49.26.013.
49.26.020
49.26.020 Asbestos use standards. Standards regulating the use of asbestos in construction or manufacturing shall
be established by the director of the department of labor and
industries, with the advice of the state health officer and the
department of ecology. Standards to be adopted shall
describe the types of asbestos that may be used in construction and manufacturing, the methods and procedures for their
use, and such other requirements as may be needed to protect
the public health and safety with respect to air-borne asbestos
particles and asbestos dust. [1973 c 30 § 2.]
49.26.030
49.26.030 Containers for asbestos products. Products
containing asbestos shall be stored in containers of types
approved by the director of the department of labor and
industries, with the advice of the state health officer and the
department of ecology. Containers of asbestos shall be
plainly marked "Asbestos—do not inhale" or other words to
the same effect. [1973 c 30 § 3.]
49.26.040
49.26.040 Regulations—Enforcement. The asbestos
use standards required under RCW 49.26.020 and the list of
approved container types required under RCW 49.26.030
shall be adopted as regulations of the department of labor and
industries. The department shall have the power to implement
and enforce such regulations. [1973 c 30 § 4.]
49.26.016
49.26.016 Inspection of construction projects—Penalties. (1) Any owner or owner's agent who allows the start
of any construction, renovation, remodeling, maintenance,
repair, or demolition without first (a) conducting the inspection and preparing and maintaining the report of the inspection, or preparing and maintaining a statement of assumption
of the presence or reasonable certainty of the absence of
asbestos, as required under RCW 49.26.013; and (b) preparing and maintaining the additional written description of the
project as required under RCW 49.26.120 shall be subject to
a mandatory fine of not less than two hundred fifty dollars for
each violation. Each day the violation continues shall be considered a separate violation. In addition, any construction,
renovation, remodeling, maintenance, repair, or demolition
which was started without meeting the requirements of RCW
49.26.013 and 49.26.120 shall be halted immediately and
cannot be resumed before meeting such requirements.
(2) No contractor may commence any construction, renovation, remodeling, maintenance, repair or demolition
project without receiving the copy of the written report or
statement from the owner or the owner's agent. Any contractor who begins any project without the copy of the written
report or statement shall be subject to a mandatory fine of not
less than two hundred and fifty dollars per day. Each day the
violation continues shall be considered a separate violation.
(3) The certificate of any asbestos contractor who knowingly violates any provision of this chapter or any rule
[Title 49 RCW—page 34]
49.26.100
49.26.100 Asbestos projects—Definitions. Unless the
context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Asbestos abatement project" means an asbestos
project involving three square feet or three linear feet, or
more, of asbestos-containing material.
(2) "Asbestos project" means the construction, demolition, repair, maintenance, remodeling, or renovation of any
public or private building or mechanical piping equipment or
systems involving the demolition, removal, encapsulation,
salvage, or disposal of material, or outdoor activity, releasing
or likely to release asbestos fibers into the air.
(3) "Department" means the department of labor and
industries.
(4) "Director" means the director of the department of
labor and industries or the director's designee.
(5) "Person" means any individual, partnership, firm,
association, corporation, sole proprietorship, or the state of
Washington or its political subdivisions.
(6) "Certified asbestos supervisor" means an individual
who is certified by the department to supervise an asbestos
project. A certified asbestos supervisor is not required for
projects involving less than three square feet or three linear
feet of asbestos-containing material.
(7) "Certified asbestos worker" means an individual who
is certified by the department to work on an asbestos project.
(2004 Ed.)
Health and Safety—Asbestos
(8) "Certified asbestos contractor" means any partnership, firm, association, corporation or sole proprietorship registered under chapter 18.27 RCW that submits a bid or contracts to remove or encapsulate asbestos for another and is
certified by the department to remove or encapsulate asbestos.
(9) "Owner" means the owner of any public or private
building, structure, facility or mechanical system, or the
agent of such owner, but does not include individuals who
work on asbestos projects on their own single-family residences no part of which is used for any commercial purpose.
[1995 c 218 § 3; 1989 c 154 § 4. Prior: 1988 c 271 § 6; 1985
c 387 § 1.]
Purpose—Severability—1989 c 154: See notes following RCW
49.26.013.
49.26.110
49.26.110 Asbestos projects—Worker's and supervisor's certificates. (1) No employee or other individual is eligible to do work governed by this chapter unless issued a certificate by the department.
(2) To qualify for a certificate:
(a) Certified asbestos workers must have successfully
completed a four-day training course. Certified asbestos
supervisors must have completed a five-day training course.
Training courses shall be provided or approved by the department; shall cover such topics as the health and safety aspects
of the removal and encapsulation of asbestos, including but
not limited to the federal and state standards regarding protective clothing, respirator use, disposal, air monitoring,
cleaning, and decontamination; and shall meet such additional qualifications as may be established by the department
by rule for the type of certification sought. The department
may require the successful completion of annual refresher
courses provided or approved by the department for continued certification as an asbestos worker or supervisor. However, the authority of the director to adopt rules implementing
this section is limited to rules that are specifically required,
and only to the extent specifically required, for the standards
to be as stringent as the applicable federal laws governing
work subject to this chapter; and
(b) All applicants for certification as asbestos workers or
supervisors must pass an examination in the type of certification sought which shall be provided or approved by the
department.
These requirements are intended to represent the minimum requirements for certification and shall not preclude
contractors or employers from providing additional education or training.
(3) The department shall provide for the reciprocal certification of any individual trained to engage in asbestos
projects in another state when the prior training is shown to
be substantially similar to the training required by the department. Nothing shall prevent the department from requiring
such individuals to take an examination or refresher course
before certification.
(4) The department may deny, suspend, or revoke a certificate, as provided under RCW 49.26.140, for failure of the
holder to comply with any requirement of this chapter or
chapter 49.17 RCW, or any rule adopted under those chapters, or applicable health and safety standards and regulations. In addition to any penalty imposed under RCW
(2004 Ed.)
49.26.120
49.26.016, the department may suspend or revoke any certificate issued under this chapter for a period of not less than six
months upon the following grounds:
(a) The certificate was obtained through error or fraud;
or
(b) The holder thereof is judged to be incompetent to
carry out the work for which the certificate was issued.
Before any certificate may be denied, suspended, or
revoked, the holder thereof shall be given written notice of
the department's intention to do so, mailed by registered mail,
return receipt requested, to the holder's last known address.
The notice shall enumerate the allegations against such
holder, and shall give him or her the opportunity to request a
hearing before the department. At such hearing, the department and the holder shall have opportunity to produce witnesses and give testimony.
(5) A denial, suspension, or revocation order may be
appealed to the board of industrial insurance appeals within
fifteen working days after the denial, suspension, or revocation order is entered. The notice of appeal may be filed with
the department or the board of industrial insurance appeals.
The board of industrial insurance appeals shall hold the hearing in accordance with procedures established in RCW
49.17.140. Any party aggrieved by an order of the board of
industrial insurance appeals may obtain superior court review
in the manner provided in RCW 49.17.150.
(6) Each person certified under this chapter shall display,
upon the request of an authorized representative of the
department, valid identification issued by the department.
[1995 c 218 § 4; 1989 c 154 § 5. Prior: 1988 c 271 § 10; 1985
c 387 § 2.]
Purpose—Severability—1989 c 154: See notes following RCW
49.26.013.
49.26.115
49.26.115 Asbestos abatement projects—Contractor's certificate required. Before working on an asbestos
abatement project, a contractor shall obtain an asbestos contractor's certificate from the department and shall have in its
employ at least one certified asbestos supervisor who is
responsible for supervising all asbestos abatement projects
undertaken by the contractor and for assuring compliance
with all state laws and regulations regarding asbestos. The
contractor shall apply for certification renewal every year.
The department shall ensure that the expiration of the contractor's registration and the expiration of his or her asbestos
contractor's certificate coincide. [1995 c 218 § 5; 1989 c 154
§ 6. Prior: 1988 c 271 § 11.]
Purpose—Severability—1989 c 154: See notes following RCW
49.26.013.
49.26.120
49.26.120 Asbestos projects—Qualified asbestos
workers and supervisor—Prenotification to department—Fire personnel. (1) No person may assign any
employee, contract with, or permit any individual or person
to remove or encapsulate asbestos in any facility unless performed by a certified asbestos worker and under the direct,
on-site supervision of a certified asbestos supervisor. In cases
in which an employer conducts an asbestos abatement project
in its own facility and by its own employees, supervision can
be performed in the regular course of a certified asbestos
supervisor's duties. Asbestos workers must have access to
[Title 49 RCW—page 35]
49.26.125
Title 49 RCW: Labor Regulations
certified asbestos supervisors throughout the duration of the
project.
(2) The department shall require persons undertaking
asbestos projects to provide written notice to the department
before the commencement of the project except as provided
in RCW 49.26.125. The notice shall include a written
description containing such information as the department
requires by rule. The department may by rule allow a person
to report multiple projects at one site in one report. The
department shall by rule establish the procedure and criteria
by which a person will be considered to have attempted to
meet the prenotification requirement.
(3) The department shall consult with the state fire protection policy board, and may establish any additional policies and procedures for municipal fire department and fire
district personnel who clean up sites after fires which have
rendered it likely that asbestos has been or will be disturbed
or released into the air. [1995 c 218 § 6; 1989 c 154 § 7.
Prior: 1988 c 271 § 12; 1985 c 387 § 4.]
Purpose—Severability—1989 c 154: See notes following RCW
49.26.013.
49.26.125
49.26.125 Prenotification to department—Exemptions. Prenotification to the department under RCW
49.26.120 shall not be required for:
(1)(a) Any asbestos project involving less than fortyeight square feet of surface area, or less than ten linear feet of
pipe unless the surface area of the pipe is greater than fortyeight square feet. The person undertaking such a project shall
keep the reports, or statements, and written descriptions
required under RCW 49.26.013 and 49.26.120 which shall be
available upon request of the department. Employees and
employee representatives may request such reports under
RCW 49.26.013(2).
(b) The director may waive the prenotification requirement upon written request of an owner for large-scale, ongoing projects. In granting such a waiver, the director shall
require the owner to provide prenotification if significant
changes in personnel, methodologies, equipment, work site,
or work procedures occur or are likely to occur. The director
shall further require annual resubmittal of such notification.
(c) The director, upon review of an owner's reports, work
practices, or other data available as a result of inspections,
audits, or other authorized activities, may reduce the size
threshold for prenotification required by this section. Such a
change shall be based on the director's determination that significant problems in personnel, methodologies, equipment,
work site, or work procedures are creating the potential for
violations of this chapter or asbestos requirements under
chapter 49.17 RCW. The new prenotification requirements
shall be given in writing to the owner and shall remain in
effect until modified or withdrawn in writing by the director.
(2) Emergency projects.
(a) As used in this section, "emergency project" means a
project that was not planned and results from a sudden, unexpected event, and does not include operations that are necessitated by nonroutine failure of equipment or systems.
(b) Emergency projects which disturb or release any
material containing asbestos into the air shall be reported to
the department within three working days after the commencement of the project in the manner otherwise required
[Title 49 RCW—page 36]
under this chapter. A notice shall be clearly posted adjacent
to the work site describing the nature of the emergency
project. The employees' collective bargaining representatives, or employee representatives, or designated representatives, if any, shall be notified of the emergency as soon as
possible by the person undertaking the emergency project.
Incremental phasing in the conduct or design of asbestos
projects or otherwise designing or conducting asbestos
projects of a size less than forty-eight square feet, or other
threshold for exemption as provided under this section, with
the intent of avoiding prenotification requirements is a violation of this chapter. [1989 c 154 § 8. Prior: 1988 c 271 § 13.]
Purpose—Severability—1989 c 154: See notes following RCW
49.26.013.
49.26.130
49.26.130 Asbestos projects—Rules—Fees—Asbestos account. (1) The department shall administer this chapter.
(2) The director of the department shall adopt, in accordance with chapters 34.05 and 49.17 RCW, rules necessary to
carry out this chapter.
(3) The department shall prescribe fees for the issuance
and renewal of certificates, including recertification, and the
administration of examinations, and for the review of training
courses.
(4) The asbestos account is hereby established in the
state treasury. All fees collected under this chapter shall be
deposited in the account. Moneys in the account shall be
spent after appropriation only for costs incurred by the
department in the administration and enforcement of this
chapter. Disbursements from the account shall be on authorization of the director of the department or the director's designee.
(5) During the 2003-2005 fiscal biennium, the legislature
may transfer from the asbestos account to the state general
fund such amounts as reflect the excess fund balance in the
account. [2003 1st sp.s. c 25 § 924; 1989 c 154 § 9. Prior:
1988 c 271 § 15; 1987 c 219 § 1; 1985 c 387 § 3.]
Severability—Effective date—2003 1st sp.s. c 25: See notes following RCW 19.28.351.
Purpose—Severability—1989 c 154: See notes following RCW
49.26.013.
49.26.140
49.26.140 Asbestos projects—Enforcement—Penalties. (1) Unless specifically provided otherwise by statute,
this chapter shall be implemented and enforced, including
penalties, violations, citations, and other administrative procedures, pursuant to the Washington industrial safety and
health act, chapter 49.17 RCW.
(2) A person or individual who previously has been
assessed a civil penalty under this section, and who knowingly violates a provision of RCW 49.26.110 through
49.26.130 or a rule adopted pursuant to RCW 49.26.110
through 49.26.130 is guilty of a misdemeanor. [1987 c 219 §
2; 1985 c 387 § 5.]
49.26.150
49.26.150 Discrimination against employee filing
complaint prohibited. Any employee who notifies the
department of any activity the employee reasonably believes
to be a violation of this chapter or any rule adopted under this
chapter or who participates in any proceeding related thereto
(2004 Ed.)
Hours of Labor
shall have the same rights and protections against discharge
or discrimination as employees are afforded under chapter
49.17 RCW. [1989 c 154 § 10. Prior: 1988 c 271 § 16.]
Purpose—Severability—1989 c 154: See notes following RCW
49.26.013.
49.26.900
49.26.900 Severability—1973 c 30. If any provision of
this 1973 act, or its application to any person or circumstance
is held invalid, the remainder of the act, or the application of
the provision to other persons or circumstances is not
affected. [1973 c 30 § 5.]
49.26.901
49.26.901 Effective dates—1988 c 271 §§ 6-18. Sections 15, as reenacted and amended in 1989, and 18, chapter
271, Laws of 1988, are necessary for the immediate preservation of the public peace, health, and safety, the support of the
state government and its existing public institutions, and shall
take effect as of March 24, 1988. Sections 6 through 8, 10
through 13, and 16, chapter 271, Laws of 1988, as reenacted
or amended and reenacted in 1989, shall take effect as of January 1, 1989. [1989 c 154 § 11. Prior: 1988 c 271 § 19.]
Purpose—Severability—1989 c 154: See notes following RCW
49.26.013.
Chapter 49.28
Chapter 49.28 RCW
HOURS OF LABOR
Sections
49.28.010
49.28.040
49.28.050
49.28.060
49.28.065
49.28.080
49.28.100
49.28.120
49.28.130
49.28.140
49.28.150
Eight hour day, 1899 act—Public works contracts—Emergency overtime—Penalty.
Eight hour day, 1903 act—Policy enunciated.
Eight hour day, 1903 act—Contracts, cancellation of, for violations.
Eight hour day, 1903 act—Stipulation in contracts—Duty of
officers.
Public works employees—Agreements to work ten hour day.
Hours of domestic employees—Exception—Penalty.
Hours of operators of power equipment in waterfront operations—Penalty.
Employer's duty to provide time to vote.
Hours of health care facility employees—Definitions.
Hours of health care facility employees—Mandatory overtime
prohibited—Exceptions.
Hours of health care facility employees—Penalties.
Child labor: RCW 26.28.060, 26.28.070.
Hours of labor for public institutions personnel: RCW 72.01.042,
72.01.043.
Prevailing wages must be paid on public works: RCW 39.12.020.
49.28.065
a part of all contracts, subcontracts, or agreements for work
done for the state or any county or municipality within the
state.
(3) Any contractor, subcontractor, or agent of contractor
or subcontractor, foreman, or employer who violates this section is guilty of a misdemeanor and shall be fined a sum not
less than twenty-five dollars nor more than two hundred dollars, or imprisoned in the county jail for a period of not less
than ten days nor more than ninety days, or both such fine and
imprisonment, at the discretion of the court. [2003 c 53 §
274; 1899 c 101 § 1; RRS § 7642.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
49.28.040 Eight hour day, 1903 act—Policy enunciated. That it is a part of the public policy of the state of
Washington that all work "by contract or day labor done" for
it, or any political subdivision created by its laws, shall be
performed in work days of not more than eight hours each,
except in cases of extraordinary emergency. No case of
extraordinary emergency shall be construed to exist in any
case where other labor can be found to take the place of labor
which has already been employed for eight hours in any calendar day. [1903 c 44 § 1; RRS § 7645.]
49.28.040
49.28.050 Eight hour day, 1903 act—Contracts, cancellation of, for violations. All contracts for work for the
state of Washington, or any political subdivision created by
its laws, shall provide that they may be canceled by the officers or agents authorized to contract for or supervise the execution of such work, in case such work is not performed in
accordance with the policy of the state relating to such work.
[1903 c 44 § 2; RRS § 7646.]
49.28.050
49.28.060 Eight hour day, 1903 act—Stipulation in
contracts—Duty of officers. It is made the duty of all officers or agents authorized to contract for work to be done in
behalf of the state of Washington, or any political subdivision
created under its laws, to stipulate in all contracts as provided
for in RCW 49.28.040 through 49.28.060, and all such officers and agents, and all officers and agents entrusted with the
supervision of work performed under such contracts, are
authorized, and it is made their duty, to declare any contract
canceled, the execution of which is not in accordance with
the public policy of this state as herein declared. [1903 c 44
§ 3; RRS § 7647.]
49.28.060
49.28.010
49.28.010 Eight hour day, 1899 act—Public works
contracts—Emergency overtime—Penalty. (1) Hereafter
eight hours in any calendar day shall constitute a day's work
on any work done for the state or any county or municipality
within the state, subject to conditions hereinafter provided.
(2) All work done by contract or subcontract on any
building or improvements or works on roads, bridges, streets,
alleys, or buildings for the state or any county or municipality
within the state, shall be done under the provisions of this
section. In cases of extraordinary emergency such as danger
to life or property, the hours for work may be extended, but in
such case the rate of pay for time employed in excess of eight
hours of each calendar day, shall be one and one-half times
the rate of pay allowed for the same amount of time during
eight hours' service. And for this purpose this section is made
(2004 Ed.)
49.28.065 Public works employees—Agreements to
work ten hour day. Notwithstanding the provisions of
RCW 49.28.010 through 49.28.060, a contractor or subcontractor in any public works contract subject to those provisions may enter into an agreement with his or her employees
in which the employees work up to ten hours in a calendar
day. No such agreement may provide that the employees
work ten-hour days for more than four calendar days a week.
Any such agreement is subject to approval by the employees.
The overtime provisions of *RCW 49.28.020 shall not apply
to the hours, up to forty hours per week, worked pursuant to
agreements entered into under this section. [1988 c 121 § 1.]
49.28.065
*Reviser's note: RCW 49.28.020 was repealed by 2003 c 53 § 421,
effective July 1, 2003.
[Title 49 RCW—page 37]
49.28.080
Title 49 RCW: Labor Regulations
49.28.080
49.28.080 Hours of domestic employees—Exception—Penalty. (1) No male or female household or domestic employee shall be employed by any person for a longer
period than sixty hours in any one week. Employed time
shall include minutes or hours when the employee has to
remain subject to the call of the employer and when the
employee is not free to follow his or her inclinations.
(2) In cases of emergency such employee may be
employed for a longer period than sixty hours.
(3) Any employer violating this section is guilty of a
misdemeanor. [2003 c 53 § 275; 1937 c 129 § 1; RRS §
7651-1. FORMER PARTS OF SECTION: (i) 1937 c 129 §
2; RRS § 7651-2, now codified as RCW 49.28.082. (ii) 1937
c 129 § 4; RRS § 7651-4, now codified as RCW 49.28.084.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
Severability—1937 c 129: "In the event any part of this act is held
invalid such invalidity shall not affect the validity of the remainder of this
act." [1937 c 129 § 3.] This applies to RCW 49.28.080 through 49.28.084.
49.28.100
49.28.100 Hours of operators of power equipment in
waterfront operations—Penalty. (1) It shall be unlawful
for any employer to permit any of his or her employees to
operate on docks, in warehouses and/or in or on other waterfront properties any power driven mechanical equipment for
the purpose of loading cargo on, or unloading cargo from,
ships, barges, or other watercraft, or of assisting in such loading or unloading operations, for a period in excess of twelve
and one-half hours at any one time without giving such person an interval of eight hours' rest: PROVIDED, HOWEVER, The provisions of this section shall not be applicable
in cases of emergency, including fire, violent storms, leaking
or sinking ships or services required by the armed forces of
the United States.
(2) Any person violating this section is guilty of a misdemeanor. [2003 c 53 § 276; 1953 c 271 § 1.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
49.28.120
49.28.120 Employer's duty to provide time to vote.
(1) Except as provided in subsection (2) of this section, every
employer shall arrange employees' working hours on the day
of a primary or election, general or special, so that each
employee will have a reasonable time up to two hours available for voting during the hours the polls are open as provided by *RCW 29.13.080.
If an employee's work schedule does not give the
employee two free hours during the time the polls are open,
not including meal or rest breaks, the employer shall permit
the employee to take a reasonable time up to two hours from
the employee's work schedule for voting purposes. In such a
case, the employer shall add this time to the time for which
the employee is paid.
(2) The provisions of this section apply only if, during
the period between the time an employee is informed of his or
her work schedule for a primary or election day and the date
of the primary or election, there is insufficient time for an
absentee ballot to be secured for that primary or election.
[1987 c 296 § 1.]
*Reviser's note: RCW 29.13.080 was recodified as RCW 29A.44.070
pursuant to 2003 c 111 § 2401, effective July 1, 2004.
[Title 49 RCW—page 38]
49.28.130
49.28.130 Hours of health care facility employees—
Definitions. The definitions in this section apply throughout
this section and RCW 49.28.140 and 49.28.150 unless the
context clearly requires otherwise.
(1) "Employee" means a licensed practical nurse or a
registered nurse licensed under chapter 18.79 RCW
employed by a health care facility who is involved in direct
patient care activities or clinical services and receives an
hourly wage.
(2) "Employer" means an individual, partnership, association, corporation, state institution, political subdivision of
the state, or person or group of persons, acting directly or
indirectly in the interest of a health care facility.
(3) "Health care facility" means the following facilities,
or any part of the facility, that operates on a twenty-four
hours per day, seven days per week basis: Hospices licensed
under chapter 70.127 RCW, hospitals licensed under chapter
70.41 RCW, rural health care facilities as defined in RCW
70.175.020, and psychiatric hospitals licensed under chapter
71.12 RCW, and includes such facilities if owned and operated by a political subdivision or instrumentality of the state.
If a nursing home regulated under chapter 18.51 RCW or a
home health agency regulated under chapter 70.127 RCW is
operating under the license of a health care facility, the nursing home or home health agency is considered part of the
health care facility for the purposes of this subsection.
(4) "Overtime" means the hours worked in excess of an
agreed upon, predetermined, regularly scheduled shift within
a twenty-four hour period not to exceed twelve hours in a
twenty-four hour period or eighty hours in a consecutive
fourteen-day period.
(5) "On-call time" means time spent by an employee
who is not working on the premises of the place of employment but who is compensated for availability or who, as a
condition of employment, has agreed to be available to return
to the premises of the place of employment on short notice if
the need arises.
(6) "Reasonable efforts" means that the employer, to the
extent reasonably possible, does all of the following but is
unable to obtain staffing coverage:
(a) Seeks individuals to volunteer to work extra time
from all available qualified staff who are working;
(b) Contacts qualified employees who have made themselves available to work extra time;
(c) Seeks the use of per diem staff; and
(d) Seeks personnel from a contracted temporary agency
when such staffing is permitted by law or an applicable collective bargaining agreement, and when the employer regularly uses a contracted temporary agency.
(7) "Unforeseeable emergent circumstance" means (a)
any unforeseen declared national, state, or municipal emergency; (b) when a health care facility disaster plan is activated; or (c) any unforeseen disaster or other catastrophic
event which substantially affects or increases the need for
health care services. [2002 c 112 § 2.]
Finding—2002 c 112: "Washington state is experiencing a critical
shortage of qualified, competent health care workers. To safeguard the
health, efficiency, and general well-being of health care workers and promote patient safety and quality of care, the legislature finds, as a matter of
public policy, that required overtime work should be limited with reasonable
safeguards in order to ensure that the public will continue to receive safe,
quality care." [2002 c 112 § 1.]
(2004 Ed.)
Agricultural Labor
49.28.140 Hours of health care facility employees—
Mandatory overtime prohibited—Exceptions. (1) No
employee of a health care facility may be required to work
overtime. Attempts to compel or force employees to work
overtime are contrary to public policy, and any such requirement contained in a contract, agreement, or understanding is
void.
(2) The acceptance by any employee of overtime is
strictly voluntary, and the refusal of an employee to accept
such overtime work is not grounds for discrimination, dismissal, discharge, or any other penalty, threat of reports for
discipline, or employment decision adverse to the employee.
(3) This section does not apply to overtime work that
occurs:
(a) Because of any unforeseeable emergent circumstance;
(b) Because of prescheduled on-call time;
(c) When the employer documents that the employer has
used reasonable efforts to obtain staffing. An employer has
not used reasonable efforts if overtime work is used to fill
vacancies resulting from chronic staff shortages; or
(d) When an employee is required to work overtime to
complete a patient care procedure already in progress where
the absence of the employee could have an adverse effect on
the patient. [2002 c 112 § 3.]
49.28.140
Finding—2002 c 112: See note following RCW 49.28.130.
49.28.150 Hours of health care facility employees—
Penalties. The department of labor and industries shall
investigate complaints of violations of RCW 49.28.140. A
violation of RCW 49.28.140 is a class 1 civil infraction in
accordance with chapter 7.80 RCW, except that the maximum penalty is one thousand dollars for each infraction up to
three infractions. If there are four or more violations of RCW
49.28.140 for a health care facility, the employer is subject to
a fine of two thousand five hundred dollars for the fourth violation, and five thousand dollars for each subsequent violation. The department of labor and industries is authorized to
issue and enforce civil infractions according to chapter 7.80
RCW. [2002 c 112 § 4.]
49.28.150
Finding—2002 c 112: See note following RCW 49.28.130.
Chapter 49.30
Chapter 49.30 RCW
AGRICULTURAL LABOR
Sections
49.30.005
49.30.010
49.30.020
49.30.040
49.30.900
49.30.901
Intent—Duties of department.
Definitions.
Hours and pay, recordkeeping.
Violation of chapter—Civil infraction.
Severability—1989 c 380.
Conflict with federal requirements—1989 c 380.
49.30.005 Intent—Duties of department. It is the
intent of the legislature that the department assist agricultural
employers in mitigating the costs of the state's unemployment
insurance program. The department shall work with members
of the agricultural community to: Improve understanding of
the program's operation; increase compliance with worksearch requirements; provide prompt notification of potential
claims against an employer's experience rating; inform
employers of their rights; inform employers of the actions
49.30.005
(2004 Ed.)
49.30.901
necessary to appeal a claim and to protect their rights; and
reduce claimant and employer fraud. These efforts shall
include:
(1) Conducting employer workshops and community
seminars;
(2) Developing new educational materials; and
(3) Developing forms that use lay language. [1998 c 245
§ 99; 1991 c 31 § 1; 1990 c 245 § 10; 1989 c 380 § 82.]
Conflict with federal requirements—1990 c 245: See note following
RCW 50.04.030.
49.30.010
49.30.010 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Agricultural employment" or "employment" means
employment in agricultural labor as defined in RCW
50.04.150.
(2) "Department" means the department of labor and
industries.
(3) "Employer" means any person, firm, corporation,
partnership, business trust, legal representative, or other business entity that engages in any agricultural activity in this
state and employs one or more employees.
(4) "Employee" means a person employed in agricultural
employment, and includes a person who is working under an
independent contract the essence of which is personal labor
in agricultural employment whether by way of manual labor
or otherwise. However, "employee" shall not include immediate family members of the officers of any corporation, partnership, sole proprietorship, or other business entity, or officers of any closely held corporation engaged in agricultural
production of crops or livestock.
(5) "Minor" means an employee who is under the age of
eighteen years. [1989 c 380 § 83.]
49.30.020
49.30.020 Hours and pay, recordkeeping. (1) Each
employer required to keep employment records under RCW
49.46.070, shall retain such records for three years.
(2) Each employer shall furnish to each employee at the
time the employee's wages are paid an itemized statement
showing the pay basis in hours or days worked, the rate or
rates of pay, the gross pay, and all deductions from the pay
for the respective pay period. [1989 c 380 § 84.]
49.30.040
49.30.040 Violation of chapter—Civil infraction.
Any violation of the provisions of this chapter or rules
adopted hereunder shall be a class I civil infraction. The
director shall have the authority to issue and enforce civil
infractions according to chapter 7.80 RCW. [1989 c 380 §
86.]
49.30.900
49.30.900 Severability—1989 c 380.
15.58.942.
See RCW
49.30.901
49.30.901 Conflict with federal requirements—1989
c 380. See note following RCW 50.04.150.
[Title 49 RCW—page 39]
Chapter 49.32
Chapter 49.32
Title 49 RCW: Labor Regulations
Chapter 49.32 RCW
INJUNCTIONS IN LABOR DISPUTES
Sections
49.32.011
49.32.020
49.32.030
49.32.050
49.32.060
49.32.070
49.32.072
49.32.073
49.32.074
49.32.080
49.32.090
49.32.100
49.32.110
49.32.900
49.32.910
Injunctions in labor disputes.
Policy enunciated.
Undertakings and promises unenforceable.
Jurisdiction of courts.
Concert of action immaterial.
Responsibility of associations.
Injunctions—Hearings and findings—Temporary orders—
Security.
Injunctions—Complaints, conditions precedent.
Injunctions—Findings and order essential.
Appellate review.
Contempt—Speedy jury trial.
Contempt—Retirement of judge.
Definitions.
Severability—1933 ex.s. c 7.
General repealer.
Labor unions—Injunctions in labor disputes—1919 act: Chapter 49.36
RCW.
Washington, shall not be enforceable in any court of the state
of Washington, and shall not afford any basis for the granting
of legal or equitable relief by any such court, including specifically the following:
Every undertaking or promise hereafter made, whether
written or oral, express or implied, constituting or contained
in any contract or agreement of hiring or employment
between any individual, firm, company, association, or corporation and any employee or prospective employee of the
same, whereby—
(1) Either party to such contract or agreement undertakes
or promises not to join, become, or remain a member of any
labor organization or of any employer organization; or
(2) Either party to such contract or agreement undertakes
or promises that he will withdraw from an employment relation in the event that he joins, becomes, or remains a member
of any labor organization or of any employer organization.
[1933 ex.s. c 7 § 3; RRS § 7612-3.]
49.32.011
49.32.011 Injunctions in labor disputes. No court of
the state of Washington or any judge or judges thereof shall
have jurisdiction to issue any restraining order or temporary
or permanent injunction in a case involving or growing out of
a labor dispute, except in a strict conformity with the provisions of this chapter; nor shall any such restraining order or
temporary or permanent injunction be issued contrary to the
public policy declared in this chapter. [1933 ex.s. c 7 § 1;
RRS § 7612-1. Cf. 1919 c 185 § 2. Formerly RCW
49.32.040.]
Injunctions in labor disputes: RCW 49.36.015.
49.32.020
49.32.020 Policy enunciated. In the interpretation of
this chapter and in determining the jurisdiction and authority
of the courts of the state of Washington, as such jurisdiction
and authority are herein defined and limited, the public policy
of the state of Washington is hereby declared as follows:
WHEREAS, Under prevailing economic conditions,
developed with the aid of governmental authority for owners
of property to organize in the corporate and other forms of
ownership association, the individual unorganized worker is
commonly helpless to exercise actual liberty of contract and
to protect his freedom of labor, and thereby to obtain acceptable terms and conditions of employment, wherefore, though
he should be free to decline to associate with his fellows, it is
necessary that he have full freedom of association, self-organization, and designation of representatives of his own choosing, to negotiate the terms and conditions of his employment,
and that he shall be free from interference, restraint, or coercion of employers of labor, or their agents, in the designation
of such representatives or in self-organization or in other concerted activities for the purpose of collective bargaining or
other mutual aid or protections; therefore, the following definitions of, and limitations upon, the jurisdiction and authority
of the courts of the state of Washington are hereby enacted.
[1933 ex.s. c 7 § 2; RRS § 7612-2.]
49.32.030
49.32.030 Undertakings and promises unenforceable. Any undertaking or promise, such as is described in
this section, or any other undertaking or promise in conflict
with the public policy declared in RCW 49.32.020, is hereby
declared to be contrary to the public policy of the state of
[Title 49 RCW—page 40]
49.32.050
49.32.050 Jurisdiction of courts. No court of the state
of Washington shall have jurisdiction to issue any restraining
order or temporary or permanent injunction in any case
involving or growing out of any labor dispute or prohibit any
person or persons participating or interested in such dispute
(as these terms are herein defined) from doing, whether singly or in concert, any of the following acts:
(1) Ceasing or refusing to perform any work or to remain
in any relation of employment;
(2) Becoming or remaining a member of any labor organization or of any employer organization, regardless of any
such undertaking or promise as is described in RCW
49.32.030;
(3) Paying or giving to, or withholding from, any person
participating or interested in such labor dispute any strike or
unemployment benefits or insurance or other moneys or
things of value;
(4) By all lawful means aiding any person participating
or interested in any labor dispute who is being proceeded
against in, or is prosecuting, any action or suit in any court of
the United States or of any state;
(5) Giving publicity to the existence of, or the facts
involved in, any labor dispute, whether by advertising, speaking, patrolling, or by any other method not involving fraud or
violence;
(6) Assembling peaceably to act or to organize to act in
promotion of their interests in a labor dispute;
(7) Advising or notifying any person of an intention to
do any of the acts heretofore specified;
(8) Agreeing with other persons to do or not to do any of
the acts heretofore specified; and
(9) Advising, urging, or otherwise causing or inducing
without fraud or violence the acts heretofore specified,
regardless of any such undertaking or promise as is described
in RCW 49.32.030. [1933 ex.s. c 7 § 4; RRS § 7612-4.]
49.32.060
49.32.060 Concert of action immaterial. No court of
the state of Washington or any judge or judges thereof shall
have jurisdiction to issue a restraining order or temporary or
permanent injunction upon the ground that any of the persons
participating or interested in a labor dispute constitute or are
(2004 Ed.)
Injunctions in Labor Disputes
engaged in an unlawful combination or conspiracy because
of the doing in concert of the acts enumerated in RCW
49.32.050. [1933 ex.s. c 7 § 5; RRS § 7612-5.]
49.32.070
49.32.070 Responsibility of associations. No officer or
member of any association or organization, and no association or organization participating or interested in a labor dispute, shall be held responsible or liable in any court of the
state of Washington for the unlawful acts of individual officers, members, or agents, except upon clear proof of actual
participation in, or actual authorization of, such acts, or of
ratification of such acts after actual knowledge thereof.
[1933 ex.s. c 7 § 6; RRS § 7612-6.]
49.32.072
49.32.072 Injunctions—Hearings and findings—
Temporary orders—Security. No court of the state of
Washington or any judge or judges thereof shall have jurisdiction to issue a temporary or permanent injunction in any
case involving or growing out of a labor dispute, as herein
defined, except after hearing the testimony of witnesses in
open court (with opportunity for cross-examination) in support of the allegations of a complaint made under oath, and
testimony in opposition thereto, if offered, and except after
findings of fact by the court, to the effect—
(1) That unlawful acts have been threatened and will be
committed unless restrained or have been committed and will
be continued unless restrained, but no injunction or temporary restraining order shall be issued on account of any threat
or unlawful act excepting against the person or persons, association, or organization making the threat or committing the
unlawful act or actually authorizing or ratifying the same
after actual knowledge thereof;
(2) That substantial and irreparable injury to complainant's property will follow;
(3) That as to each item of relief granted greater injury
will be inflicted upon complainant by the denial of relief than
will be inflicted upon defendants by the granting of relief;
(4) That complainant has no adequate remedy at law; and
(5) That the public officers charged with the duty to protect complainant's property are unable or unwilling to furnish
adequate protection.
Such hearing shall be held after due and personal notice
thereof has been given, in such manner as the court shall
direct, to all persons against whom relief is sought, and also
to the chief of those public officials of the county and city
within which the unlawful acts have been threatened or committed charged with the duty to protect complainant's property: PROVIDED, HOWEVER, That if a complainant shall
also allege that, unless a temporary restraining order shall be
issued without notice, a substantial and irreparable injury to
complainant's property will be unavoidable, such a temporary
restraining order may be issued upon testimony under oath,
sufficient, if sustained, to justify the court in issuing a temporary injunction upon a hearing after notice. Such a temporary
restraining order shall be effective for no longer than five
days and shall become void at the expiration of said five days.
No temporary restraining order or temporary injunction shall
be issued except on condition that complainant shall first file
an undertaking with adequate security in an amount to be
fixed by the court sufficient to recompense those enjoined for
(2004 Ed.)
49.32.080
any loss, expense, or damage caused by the improvident or
erroneous issuance of such order or injunction, including all
reasonable costs (together with a reasonable attorney's fee)
and expense of defense against the order or against the granting of any injunctive relief sought in the same proceeding and
subsequently denied by the court.
The undertaking herein mentioned shall be understood to
signify an agreement entered into by the complainant and the
surety upon which a decree may be rendered in the same suit
or proceeding against said complainant and surety, upon a
hearing to assess damages of which hearing complainant and
surety shall have reasonable notice, the said complainant and
surety submitting themselves to the jurisdiction of the court
for that purpose. But nothing herein contained shall deprive
any party having a claim or cause of action under or upon
such undertaking from electing to pursue his ordinary remedy
by suit at law or in equity. [1933 ex.s. c 7 § 7; RRS § 76127.]
Reviser's note: This section was declared unconstitutional in Blanchard v. Golden Age Brewing Co., 188 Wash. 396, 63 P.2d 397 (1936).
49.32.073
49.32.073 Injunctions—Complaints, conditions precedent. No restraining order or injunctive relief shall be
granted to any complainant who has failed to comply with
any obligation imposed by law which is involved in the labor
dispute in question, or who has failed to make every reasonable effort to settle such dispute either by negotiation or with
the aid of any available governmental machinery of mediation or voluntary arbitration. [1933 ex.s. c 7 § 8; RRS § 76128.]
Reviser's note: This section was declared unconstitutional in Blanchard v. Golden Age Brewing Co., 188 Wash. 396, 63 P.2d 397 (1936).
49.32.074
49.32.074 Injunctions—Findings and order essential.
No restraining order or temporary or permanent injunction
shall be granted in a case involving or growing out of a labor
dispute, except on the basis of findings of fact made and filed
by the court in the record of the case prior to the issuance of
such restraining order or injunction; and every restraining
order or injunction granted in a case involving or growing out
of a labor dispute, shall include only a prohibition of such
specific act or acts as may be expressly complained of in the
complaint or petition filed in such case and as shall be
expressly included in said findings of fact made and filed by
the court as provided herein. [1933 ex.s. c 7 § 9; RRS § 76129.]
Reviser's note: This section was declared unconstitutional in Blanchard v. Golden Age Brewing Co., 188 Wash. 396, 63 P.2d 397 (1936).
49.32.080
49.32.080 Appellate review. Whenever any court of
the state of Washington shall issue or deny any temporary
injunction in a case involving or growing out of a labor dispute, the court shall, upon the request of any party to the proceedings, and on his filing the usual bond for costs, forthwith
certify the entire record of the case, including a transcript of
the evidence taken, to the supreme court or the court of
appeals for its review. Upon the filing of such record in the
supreme court or the court of appeals, the appeal shall be
heard and the temporary injunctive order affirmed, modified,
or set aside with the greatest possible expedition, giving the
proceedings precedence over all other matters except older
[Title 49 RCW—page 41]
49.32.090
Title 49 RCW: Labor Regulations
matters of the same character. [1971 c 81 § 116; 1933 ex.s. c
7 § 10; RRS § 7612-10.]
Rules of court: Appeal procedure superseded by RAP 2.1, 2.2, 18.22.
49.32.090
49.32.090 Contempt—Speedy jury trial. In all cases
arising under this chapter in which a person shall be charged
with contempt in a court of the state of Washington, the
accused shall enjoy the right to a speedy and public trial by an
impartial jury of the county wherein the contempt shall have
been committed: PROVIDED, That this right shall not apply
to contempts committed in the presence of the court or so
near thereto as to interfere directly with the administration of
justice or to apply to the misbehavior, misconduct or disobedience of any officer of the court in respect to the writs,
orders, or process of the court. [1933 ex.s. c 7 § 11; RRS §
7612-11.]
ing, fixing, maintaining, changing, or seeking to arrange
terms or conditions of employment, regardless of whether or
not the disputants stand in the proximate relation of employer
and employee. [1933 ex.s. c 7 § 13; RRS § 7612-13. Formerly RCW 49.32.010.]
49.32.900
49.32.900 Severability—1933 ex.s. c 7. If any provision of this chapter or the application thereof to any person or
circumstance is held unconstitutional, or otherwise invalid,
the remaining provisions of the chapter and the application of
such provisions to other persons or circumstances shall not be
affected thereby. [1933 ex.s. c 7 § 14; RRS § 7612-14.]
49.32.910
49.32.910 General repealer. All acts and parts of acts
in conflict with the provisions of this chapter are hereby
repealed. [1933 ex.s. c 7 § 15; RRS § 7612-15.]
49.32.100
49.32.100 Contempt—Retirement of judge. The
defendant in any proceeding for contempt of court may file
with the court a demand for the retirement of the judge sitting
in the proceeding, if the contempt arises from an attack upon
the character or conduct of such judge and if the attack
occurred elsewhere than in the presence of the court or so
near thereto as to interfere directly with the administration of
justice. Upon the filing of any such demand the judge shall
thereupon proceed no further, but another judge shall be designated in the same manner as provided by law. The demand
shall be filed prior to the hearing of the contempt proceeding.
[1933 ex.s. c 7 § 12; RRS § 7612-12.]
Civil procedure—Prejudice of judge—Change of venue: RCW 4.12.040.
Chapter 49.36
Chapter 49.36 RCW
LABOR UNIONS
Sections
49.36.010
49.36.015
49.36.020
49.36.030
Unions legalized.
Injunctions in labor disputes.
Employment contracts—Remedy for violation.
Prosecutions prohibited.
Collective bargaining with employees of city owned utilities: RCW
35.22.350.
Discrimination—Unfair practices: RCW 49.60.180 through 49.60.215,
49.60.220.
Prohibited practices: Chapter 49.44 RCW.
Supervisor of industrial relations: RCW 43.22.260.
49.32.110
49.32.110 Definitions. When used in this chapter, and
for the purpose of this chapter—
(1) A case shall be held to involve or to grow out of a
labor dispute when the case involves persons who are
engaged in the same industry, trade, or occupation; or have
direct or indirect interests therein; or who are employees of
the same employer; or who are members of the same or an
affiliated organization of employers or employees; whether
such dispute is (a) between one or more employers or associations of employers and one or more employees or associations of employees; (b) between one or more employers or
associations of employers and one or more employers or
association of employers; or (c) between one or more
employees or association of employees and one or more
employees or association of employees; or when the case
involves any conflicting or competing interests in a "labor
dispute" (as hereinafter defined) of "persons participating or
interested" therein (as hereinafter defined).
(2) A person or association shall be held to be a person
participating or interested in a labor dispute if relief is sought
against him or it, and if he or it is engaged in the same industry, trade, craft, or occupation in which dispute occurs, or has
a direct or indirect interest therein or is a member, officer, or
agent of any association composed in whole or in part of
employers or employees engaged in such industry, trade,
craft, or occupation.
(3) The term "labor dispute" includes any controversy
concerning terms or conditions of employment, or concerning the association or representation of persons in negotiat[Title 49 RCW—page 42]
49.36.010
49.36.010 Unions legalized. It shall be lawful for working men and women to organize themselves into, or carry on
labor unions for the purpose of lessening the hours of labor or
increasing the wages or bettering the conditions of the members of such organizations; or carry out their legitimate purposes by any lawful means. [1919 c 185 § 1; RRS § 7611.]
49.36.015
49.36.015 Injunctions in labor disputes. No restraining order or injunction shall be granted by any court of this
state, or any judge or judges thereof in any case between an
employer and employee or between employer and employees
or between employees or between persons employed and persons seeking employment involving or growing out of a dispute concerning terms or conditions of employment, unless
necessary to prevent irreparable damage to property or to a
personal right or to a property right of the party making the
application, for which injury there is no adequate remedy at
law, and such petition must be in writing describing such
damage or injury feared by the applicant, and sworn to by the
applicant or his agent or attorney. No such restraining order
or injunction shall prohibit any such person or persons,
whether singly or in concert, from terminating any relation of
employment or from ceasing to perform any work or labor; or
from paying or giving to, or withholding from any person
engaged in such dispute, any strike benefits or other moneys
or things of value; or from doing any act or thing which might
lawfully be done in the absence of such dispute by any party
thereto; nor shall any of the acts specified in this section be
(2004 Ed.)
Theatrical Enterprises
considered or held to be illegal or unlawful in any court of the
state. [1919 c 185 § 2; RRS § 7612.]
Labor disputes: Chapter 49.32 RCW.
49.36.020
49.36.020 Employment contracts—Remedy for violation. The labor of a human being is not a commodity or
article of commerce, and the right to enter into the relation of
employer and employee or to change that relation except in
violation of contract is a legal right. In all cases involving the
violation of the contract of employment, either by the
employee or employer where no irreparable damage is about
to be done to the property, personal rights or property rights
of either, no injunction shall be granted, but the parties shall
be left to their remedy at law. [1919 c 185 § 3; RRS § 7613.]
Injunctions in labor disputes: RCW 49.32.011.
49.38.900
for the period for which a single payment of wages is made,
but not to exceed one week.
(2) The deposit required under subsection (1) of this section shall be on file with the department seven calendar days
before the commencement of the theatrical enterprise. [1984
c 89 § 2.]
49.38.030
49.38.030 Action to require cash deposit or bond. If
a person engaged in the business of promoting a theatrical
enterprise fails to deposit cash or the bond required under
RCW 49.38.020, the department may bring an action in the
superior court to compel such person to deposit the cash or
bond or cease doing business until he or she has done so.
[1984 c 89 § 3.]
49.36.030
49.36.030 Prosecutions prohibited. No person shall be
indicted, prosecuted, or tried in any court of this state for
entering into or carrying on any lawful arrangement, agreement, or combination between themselves made with a view
of lessening the number of hours of labor or increasing wages
or bettering the conditions of working men and women, or for
any lawful act done in pursuance thereof. [1919 c 185 § 4;
RRS § 7614.]
Chapter 49.38
Chapter 49.38 RCW
THEATRICAL ENTERPRISES
Sections
49.38.010
49.38.020
49.38.030
49.38.040
49.38.050
49.38.060
49.38.070
49.38.900
Definitions.
Payment of wages—Cash deposit or bond required.
Action to require cash deposit or bond.
Payment of wages—Action against cash deposit or bond—
Limitations.
Recovery of attorney's fees and costs.
Penalty.
Department to adopt rules.
Severability—1984 c 89.
49.38.010
49.38.010 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) Department means the department of labor and
industries.
(2) Theatrical enterprise means the production of any circus, vaudeville, carnival, revue, variety show, musical comedy, operetta, opera, drama, endurance contest, marathon,
walkathon, or any other entertainment event where persons
are a part of the enterprise's presentation. Theatrical enterprise does not include a program of a radio or television station operating pursuant to a license issued by the federal communications commission or any event produced by a nonprofit cultural or artistic organization that has been located in
a community for at least two years. [1984 c 89 § 1.]
49.38.040
49.38.040 Payment of wages—Action against cash
deposit or bond—Limitations. Any person having a claim
for wages against a person engaged in the business of promoting a theatrical enterprise may bring an action against the
bond or cash deposit in the district or superior court of the
county in which the theatrical enterprise is produced or any
county in which the principal on the bond resides or conducts
business. An action against the bond may be brought against
the named surety without joining the principal named in the
bond. The liability of the surety shall not exceed the amount
named in the bond. Any action brought under this chapter
shall be commenced within one year after the completion of
the work for which wages are alleged to be due and owing
under this chapter. If a cash deposit has been made in lieu of
a surety bond and if judgment is entered against the depositor
and deposit, then the department shall upon receipt of a certified copy of a final judgment within one year of the date of
entry of such judgment pay the judgment from the deposit.
The priority of payment by the department shall be the order
of receipt by the department, but the department shall have no
liability for payment in excess of the amount of the deposit.
[1984 c 89 § 4.]
49.38.050
49.38.050 Recovery of attorney's fees and costs. In an
action brought pursuant to RCW 49.38.040, the prevailing
party is entitled to reasonable attorney's fees and costs. [1984
c 89 § 5.]
49.38.060
49.38.060 Penalty. Any person who violates this chapter is guilty of a gross misdemeanor. [1984 c 89 § 6.]
49.38.070
49.38.070 Department to adopt rules. The department
may adopt rules under chapter 34.05 RCW to carry out the
provisions of this chapter. [1984 c 89 § 7.]
49.38.020
49.38.020 Payment of wages—Cash deposit or bond
required. (1) Any person engaged in the business of promoting a theatrical enterprise in this state shall deposit with the
department the cash or a bond issued by a surety company
authorized to do business in this state in an amount determined sufficient by the department to pay the wages of every
person involved in the production of the theatrical enterprise
(2004 Ed.)
49.38.900
49.38.900 Severability—1984 c 89. If any provision of
this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1984 c 89 § 8.]
[Title 49 RCW—page 43]
Chapter 49.40
Chapter 49.40
Title 49 RCW: Labor Regulations
Chapter 49.40 RCW
SEASONAL LABOR
Sections
49.40.010
49.40.020
49.40.030
49.40.040
49.40.050
49.40.060
49.40.070
49.40.080
Seasonal labor defined.
Contracts to be in writing—Advances.
Fraud in securing advances—Penalty.
Disputes determined by director of labor and industries.
Hearings.
Findings and award.
Appeal.
Findings and award as evidence.
49.40.010 Seasonal labor defined. For the purpose of
this chapter the term "seasonal labor" shall include all work
performed by any person employed for a period of time
greater than one month and where the wages for such work
are not to be paid at any fixed interval of time, but at the termination of such employment, and where such person is
hired within this state for work to be performed outside the
state and the wages earned during said employment are to be
paid in this state at the termination of such employment:
PROVIDED, That this chapter shall not apply to wages
earned by seamen or other persons where the payment of
their wages is regulated by federal statutes. [1919 c 191 § 1;
RRS § 7603.]
49.40.010
the state as he shall determine is most convenient for the parties, and the director or his deputy shall have power and
authority to issue subpoenas to compel the attendance of witnesses and the production of books, papers and records at
such hearing, and to administer oaths. Obedience to such subpoenas shall be enforced by the courts of the county where
such hearing is held. [1919 c 191 § 5; RRS § 7607.]
49.40.060 Findings and award. The director of labor
and industries, or his deputy holding the hearing shall, after
such hearing, determine the amount due from the employer to
the employee, and shall make findings of fact and an award in
accordance therewith, which findings and award shall be
filed in the office of the director and a copy thereof served
upon the employer and upon the employee by registered mail
directed to their last known post office address. [1919 c 191
§ 6; RRS § 7608.]
49.40.060
49.40.070
49.40.070 Appeal. Any person aggrieved by the finding
or award of the director of labor and industries has the right
of appeal in the manner provided in chapter 34.05 RCW.
[1987 c 202 § 217; 1919 c 191 § 7; RRS § 7609.]
Intent—1987 c 202: See note following RCW 2.04.190.
49.40.080 Findings and award as evidence. In case no
appeal is taken from the award of the director of labor and
industries and suit shall be brought upon the contract for seasonal labor in any court of competent jurisdiction, the findings and award of the director made in any proceeding under
this chapter at a hearing at which both parties to such suit
shall have appeared may be introduced in evidence in such
suit, for the information of the court in which the suit is pending, and may, in the discretion of the court, be submitted to
the jury as a part of the evidence in the case; but such findings
and award shall not be conclusive or binding upon the court
or the jury in any such case. [1919 c 191 § 8; RRS § 7610.]
49.40.080
49.40.020 Contracts to be in writing—Advances.
Every contract for seasonal labor shall be in writing and
signed by the employer and the employee, and may provide
for advances of moneys to be earned under such contract or
for the furnishing of supplies to the employee before the
wages are earned, and for the payment of money or the furnishing of supplies during the season. [1919 c 191 § 2; RRS
§ 7604.]
49.40.020
49.40.030 Fraud in securing advances—Penalty.
Every employee who with intent to defraud shall have
secured advances of money or supplies under a contract for
seasonable labor and who with intent to defraud shall wilfully
fail to perform sufficient labor to compensate for such
advances and supplies made under such contract shall be
guilty of a gross misdemeanor. [1919 c 191 § 3; RRS §
7605.]
49.40.030
49.40.040 Disputes determined by director of labor
and industries. Upon the written petition of either the
employer or the employee setting forth in ordinary and concise language the facts and questions in dispute, the director
of labor and industries shall, in person or by his duly authorized deputy, and is hereby authorized to hear and determine
all disputes concerning wages earned at seasonal labor, and
allow or reject deductions made from such wages for moneys
advanced or supplies furnished before the wages are earned
for money paid or supplies furnished during the season or for
money paid to third persons upon the written order of the
employee. [1919 c 191 § 4; RRS § 7606.]
49.40.040
49.40.050 Hearings. Upon the filing of any such petition, the director of labor and industries shall notify the other
party to the dispute of the time and place when and where
such petition will be heard, and may set said petition for a
hearing before a regularly appointed deputy at such place in
49.40.050
[Title 49 RCW—page 44]
Chapter 49.44 RCW
VIOLATIONS—PROHIBITED PRACTICES
Chapter 49.44
Sections
49.44.010
49.44.020
49.44.030
49.44.040
49.44.050
49.44.060
49.44.080
49.44.090
49.44.100
49.44.120
49.44.135
49.44.140
49.44.150
49.44.160
49.44.170
49.44.180
Blacklisting—Penalty.
Bribery of labor representative.
Labor representative receiving bribe.
Obtaining employment by false letter or certificate.
Fraud by employment agent.
Corrupt influencing of agent.
Endangering life by refusal to labor.
Unfair practices in employment because of age of employee or
applicant—Exceptions.
Bringing in out-of-state persons to replace employees involved
in labor dispute—Penalty.
Requiring lie detector tests—Penalty.
Requiring lie detector tests—Civil penalty and damages—
Attorneys' fees.
Requiring assignment of employee's rights to inventions—
Conditions.
Requiring assignment of employee's rights to inventions—
Disclosure of inventions by employee.
Public employers—Intent.
Public employers—Unfair practices—Definitions—Remedies.
Genetic screening.
Blind or handicapped persons, discriminating against in public employment:
RCW 70.84.080.
Discrimination—Unfair practices: RCW 49.60.180 through 49.60.200.
(2004 Ed.)
Violations—Prohibited Practices
49.44.010
49.44.010 Blacklisting—Penalty. Every person in this
state who shall wilfully and maliciously, send or deliver, or
make or cause to be made, for the purpose of being delivered
or sent or part with the possession of any paper, letter or writing, with or without name signed thereto, or signed with a fictitious name, or with any letter, mark or other designation, or
publish or cause to be published any statement for the purpose of preventing any other person from obtaining employment in this state or elsewhere, and every person who shall
wilfully and maliciously "blacklist" or cause to be "blacklisted" any person or persons, by writing, printing or publishing, or causing the same to be done, the name, or mark, or
designation representing the name of any person in any
paper, pamphlet, circular or book, together with any statement concerning persons so named, or publish or cause to be
published that any person is a member of any secret organization, for the purpose of preventing such person from securing
employment, or who shall wilfully and maliciously make or
issue any statement or paper that will tend to influence or
prejudice the mind of any employer against the person of
such person seeking employment, or any person who shall do
any of the things mentioned in this section for the purpose of
causing the discharge of any person employed by any railroad or other company, corporation, individual or individuals, shall, on conviction thereof, be adjudged guilty of misdemeanor and punished by a fine of not less than one hundred
dollars nor more than one thousand dollars, or by imprisonment in the county jail for not less than ninety days nor more
than one year, or by both such fine and imprisonment. [1899
c 23 § 1; RRS § 7599.]
Interference with or discharge from employment of member of organized
militia: RCW 38.40.040, 38.40.050.
49.44.090
49.44.050
49.44.050 Fraud by employment agent. Every
employment agent or broker who, with intent to influence the
action of any person thereby, shall misstate or misrepresent
verbally, or in any writing or advertisement, any material
matter relating to the demand for labor, the conditions under
which any labor or service is to be performed, the duration
thereof or the wages to be paid therefor, shall be guilty of a
misdemeanor. [1909 c 249 § 372; RRS § 2624.]
Discrimination—Unfair practices of employment agencies: RCW
49.60.200.
False advertising: RCW 9.04.010.
49.44.060
49.44.060 Corrupt influencing of agent. Every person
who shall give, offer or promise, directly or indirectly, any
compensation, gratuity or reward to any agent, employee or
servant of any person or corporation, with intent to influence
his action in relation to his principal's, employer's or master's
business, shall be guilty of a gross misdemeanor. [1909 c 249
§ 426; RRS § 2678.]
49.44.080
49.44.080 Endangering life by refusal to labor. Every
person who shall wilfully and maliciously, either alone or in
combination with others, break a contract of service or
employment, knowing or having reasonable cause to believe
that the consequence of his so doing will be to endanger
human life or to cause grievous bodily injury, or to expose
valuable property to destruction or serious injury, shall be
guilty of a misdemeanor. [1909 c 249 § 281; RRS § 2533.]
Injunctions in labor disputes: Chapter 49.32 RCW.
Labor unions—Injunctions in labor disputes: RCW 49.36.015.
49.44.090
Libel and slander: Chapter 9.58 RCW.
49.44.020
49.44.020 Bribery of labor representative. Every person who shall give, offer or promise, directly or indirectly,
any compensation, gratuity or reward to any duly constituted
representative of a labor organization, with intent to influence
him in respect to any of his acts, decisions or other duties as
such representative, or to induce him to prevent or cause a
strike by the employees of any person or corporation, shall be
guilty of a gross misdemeanor. [1909 c 249 § 424; RRS §
2676.]
49.44.030
49.44.030 Labor representative receiving bribe.
Every person who, being the duly constituted representative
of a labor organization, shall ask or receive, directly or indirectly, any compensation, gratuity or reward, or any promise
thereof, upon any agreement or understanding that any of his
acts, decisions or other duties as such representative, or any
act to prevent or cause a strike of the employees of any person
or corporation shall be influenced thereby, shall be guilty of a
gross misdemeanor. [1909 c 249 § 425; RRS § 2677.]
49.44.040
49.44.040 Obtaining employment by false letter or
certificate. Every person who shall obtain employment or
appointment to any office or place of trust, by color or aid of
any false or forged letter or certificate of recommendation,
shall be guilty of a misdemeanor. [1909 c 249 § 371; RRS §
2623.]
(2004 Ed.)
49.44.090 Unfair practices in employment because of
age of employee or applicant—Exceptions. It shall be an
unfair practice:
(1) For an employer or licensing agency, because an
individual is forty years of age or older, to refuse to hire or
employ or license or to bar or to terminate from employment
such individual, or to discriminate against such individual in
promotion, compensation or in terms, conditions or privileges of employment: PROVIDED, That employers or
licensing agencies may establish reasonable minimum and/or
maximum age limits with respect to candidates for positions
of employment, which positions are of such a nature as to
require extraordinary physical effort, endurance, condition or
training, subject to the approval of the executive director of
the Washington state human rights commission or the director of labor and industries through the division of industrial
relations.
(2) For any employer, licensing agency or employment
agency to print or circulate or cause to be printed or circulated any statement, advertisement, or publication, or to use
any form of application for employment or to make any
inquiry in connection with prospective employment, which
expresses any limitation, specification or discrimination
respecting individuals forty years of age or older: PROVIDED, That nothing herein shall forbid a requirement of
disclosure of birth date upon any form of application for
employment or by the production of a birth certificate or
other sufficient evidence of the applicant's true age after an
employee is hired.
[Title 49 RCW—page 45]
49.44.100
Title 49 RCW: Labor Regulations
Nothing contained in this section or in RCW 49.60.180
as to age shall be construed to prevent the termination of the
employment of any person who is physically unable to perform his or her duties or to affect the retirement policy or system of any employer where such policy or system is not
merely a subterfuge to evade the purposes of this section; nor
shall anything in this section or in RCW 49.60.180 be
deemed to preclude the varying of insurance coverages
according to an employee's age; nor shall this section be construed as applying to any state, county, or city law enforcement agencies, or as superseding any law fixing or authorizing the establishment of reasonable minimum or maximum
age limits with respect to candidates for certain positions in
public employment which are of such a nature as to require
extraordinary physical effort, or which for other reasons warrant consideration of age factors. [1993 c 510 § 24; 1985 c
185 § 30; 1983 c 293 § 2; 1961 c 100 § 5.]
Severability—1993 c 510: See note following RCW 49.60.010.
Element of age not to affect apprenticeship agreements: RCW 49.04.910.
Unfair practices, discrimination because of age: RCW 49.60.180 through
49.60.205.
49.44.100
49.44.100 Bringing in out-of-state persons to replace
employees involved in labor dispute—Penalty. (1) It shall
be unlawful for any person, firm or corporation not directly
involved in a labor strike or lockout to recruit and bring into
this state from outside this state any person or persons for
employment, or to secure or offer to secure for such person or
persons any employment, when the purpose of such recruiting, securing or offering to secure employment is to have
such persons take the place in employment of employees in a
business owned by a person, firm or corporation involved in
a labor strike or lockout, or to have such persons act as pickets of a business owned by a person, firm or corporation
where a labor strike or lockout exists: PROVIDED, That this
section shall not apply to activities and services offered by or
through the Washington employment security department.
(2) Any person violating this section is guilty of a gross
misdemeanor. [2003 c 53 § 277; 1961 c 180 § 1.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
49.44.120
49.44.120 Requiring lie detector tests—Penalty. (1)
It shall be unlawful for any person, firm, corporation or the
state of Washington, its political subdivisions or municipal
corporations to require, directly or indirectly, that any
employee or prospective employee take or be subjected to
any lie detector or similar tests as a condition of employment
or continued employment: PROVIDED, That this section
shall not apply to persons making initial application for
employment with any law enforcement agency: PROVIDED
FURTHER, That this section shall not apply to either the initial application for employment or continued employment of
persons who manufacture, distribute, or dispense controlled
substances as defined in chapter 69.50 RCW, or to persons in
sensitive positions directly involving national security.
(2) Nothing in this section shall be construed to prohibit
the use of psychological tests as defined in RCW 18.83.010.
(3) Any person violating this section is guilty of a misdemeanor.
[Title 49 RCW—page 46]
(4) As used in this section, "person" includes any individual, firm, corporation, or agency or political subdivision
of the state.
(5) Nothing in this section may be construed as limiting
any statutory or common law rights of any person illegally
denied employment or continued employment under this section for purposes of any civil action or injunctive relief.
[2003 c 53 § 278; 1985 c 426 § 1; 1973 c 145 § 1; 1965 c 152
§ 1.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
49.44.135
49.44.135 Requiring lie detector tests—Civil penalty
and damages—Attorneys' fees. In a civil action alleging a
violation of RCW 49.44.120, the court may:
(1) Award a penalty in the amount of five hundred dollars to a prevailing employee or prospective employee in
addition to any award of actual damages;
(2) Award reasonable attorneys' fees and costs to the prevailing employee or prospective employee; and
(3) Pursuant to RCW 4.84.185, award any prevailing
party against whom an action has been brought for a violation
of RCW 49.44.120 reasonable expenses and attorneys' fees
upon final judgment and written findings by the trial judge
that the action was frivolous and advanced without reasonable cause. [1985 c 426 § 3.]
49.44.140
49.44.140 Requiring assignment of employee's rights
to inventions—Conditions. (1) A provision in an employment agreement which provides that an employee shall
assign or offer to assign any of the employee's rights in an
invention to the employer does not apply to an invention for
which no equipment, supplies, facilities, or trade secret information of the employer was used and which was developed
entirely on the employee's own time, unless (a) the invention
relates (i) directly to the business of the employer, or (ii) to
the employer's actual or demonstrably anticipated research or
development, or (b) the invention results from any work performed by the employee for the employer. Any provision
which purports to apply to such an invention is to that extent
against the public policy of this state and is to that extent void
and unenforceable.
(2) An employer shall not require a provision made void
and unenforceable by subsection (1) of this section as a condition of employment or continuing employment.
(3) If an employment agreement entered into after September 1, 1979, contains a provision requiring the employee
to assign any of the employee's rights in any invention to the
employer, the employer must also, at the time the agreement
is made, provide a written notification to the employee that
the agreement does not apply to an invention for which no
equipment, supplies, facility, or trade secret information of
the employer was used and which was developed entirely on
the employee's own time, unless (a) the invention relates (i)
directly to the business of the employer, or (ii) to the
employer's actual or demonstrably anticipated research or
development, or (b) the invention results from any work preformed [performed] by the employee for the employer.
[1979 ex.s. c 177 § 2.]
(2004 Ed.)
Minimum Wage Act
49.44.150
49.44.150 Requiring assignment of employee's rights
to inventions—Disclosure of inventions by employee.
Even though the employee meets the burden of proving the
conditions specified in RCW 49.44.140, the employee shall,
at the time of employment or thereafter, disclose all inventions being developed by the employee, for the purpose of
determining employer or employee rights. The employer or
the employee may disclose such inventions to the department
of employment security, and the department shall maintain a
record of such disclosures for a minimum period of five
years. [1979 ex.s. c 177 § 3.]
49.44.160
49.44.160 Public employers—Intent. The legislature
intends that public employers be prohibited from misclassifying employees, or taking other action to avoid providing or
continuing to provide employment-based benefits to which
employees are entitled under state law or employer policies
or collective bargaining agreements applicable to the
employee's correct classification.
Chapter 155, Laws of 2002 does not mandate that any
public employer provide benefits to actual temporary, seasonal, or part-time employees beyond the benefits to which
they are entitled under state law or employer policies or collective bargaining agreements applicable to the employee's
correct classification. Public employers may determine eligibility rules for their own benefit plans and may exclude categories of workers such as "temporary" or "seasonal," so long
as the definitions and eligibility rules are objective and
applied on a consistent basis. Objective standards, such as
control over the work and the length of the employment relationship, should determine whether a person is an employee
who is entitled to employee benefits, rather than the arbitrary
application of labels, such as "temporary" or "contractor."
Common law standards should be used to determine whether
a person is performing services as an employee, as a contractor, or as part of an agency relationship.
Chapter 155, Laws of 2002 does not modify any statute
or policy regarding the employment of: Public employee
retirees who are hired for postretirement employment as provided for in chapter 41.26, 41.32, 41.35, or 41.40 RCW or
who work as contractors; or enrolled students who receive
employment as student employees or as part of their education or financial aid. [2002 c 155 § 1.]
Construction—2002 c 155: "This act shall be construed liberally for
the accomplishment of its purposes." [2002 c 155 § 3.]
Severability—2002 c 155: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [2002 c 155 § 4.]
49.44.170
49.44.170 Public employers—Unfair practices—Definitions—Remedies. (1) It is an unfair practice for any public employer to:
(a) Misclassify any employee to avoid providing or continuing to provide employment-based benefits; or
(b) Include any other language in a contract with an
employee that requires the employee to forgo employmentbased benefits.
(2) The definitions in this subsection apply throughout
chapter 155, Laws of 2002 unless the context clearly requires
otherwise.
(2004 Ed.)
Chapter 49.46
(a) "Employee" means a person who is providing services for compensation to an employer, unless the person is
free from the employer's direction and control over the performance of work. This definition shall be interpreted consistent with common law.
(b) "Employment-based benefits" means any benefits to
which employees are entitled under state law or employer
policies or collective bargaining agreements applicable to the
employee's correct classification.
(c) "Public employer" means: (i) Any unit of local government including, but not limited to, a county, city, town,
municipal corporation, quasi-municipal corporation, or political subdivision; and (ii) the state, state institutions, and state
agencies. This definition shall be interpreted consistent with
common law.
(d) "Misclassify" and "misclassification" means to incorrectly classify or label a long-term public employee as "temporary," "leased," "contract," "seasonal," "intermittent," or
"part-time," or to use a similar label that does not objectively
describe the employee's actual work circumstances.
(3) An employee deeming himself or herself harmed in
violation of subsection (1) of this section may bring a civil
action in a court of competent jurisdiction. [2002 c 155 § 2.]
Construction—Severability—2002 c 155: See notes following RCW
49.44.160.
49.44.180
49.44.180 Genetic screening. It shall be unlawful for
any person, firm, corporation, or the state of Washington, its
political subdivisions, or municipal corporations to require,
directly or indirectly, that any employee or prospective
employee submit genetic information or submit to screening
for genetic information as a condition of employment or continued employment.
"Genetic information" for purposes of this chapter, is
information about inherited characteristics that can be
derived from a DNA-based or other laboratory test, family
history, or medical examination. "Genetic information" for
purposes of this chapter, does not include: (1) Routine physical measurements, including chemical, blood, and urine
analysis, unless conducted purposefully to diagnose genetic
or inherited characteristics; and (2) results from tests for
abuse of alcohol or drugs, or for the presence of HIV. [2004
c 12 § 1.]
Chapter 49.46
Chapter 49.46 RCW
MINIMUM WAGE ACT
Sections
49.46.005
49.46.010
49.46.020
49.46.040
49.46.060
49.46.065
49.46.070
49.46.080
49.46.090
49.46.100
49.46.110
Declaration of necessity and police power.
Definitions.
Minimum hourly wage.
Investigation—Services of federal agencies—Employer's
records—Industrial homework.
Exceptions for learners, apprentices, messengers, disabled.
Individual volunteering labor to state or local governmental
agency—Amount reimbursed for expenses or received as
nominal compensation not deemed salary for rendering services or affecting public retirement rights.
Records of employer—Contents—Inspection—Sworn statement.
New or modified regulations—Judicial review—Stay.
Payment of wages less than chapter requirements—
Employer's liability—Assignment of wage claim.
Prohibited acts of employer—Penalty.
Collective bargaining not impaired.
[Title 49 RCW—page 47]
49.46.005
49.46.120
49.46.130
49.46.140
49.46.900
49.46.910
49.46.920
Title 49 RCW: Labor Regulations
Chapter establishes minimum standards and is supplementary
to other laws—More favorable standards unaffected.
Minimum rate of compensation for employment in excess of
forty hour work week—Exceptions.
Notification of employers.
Severability—1959 c 294.
Short title.
Effective date—1975 1st ex.s. c 289.
Enforcement of wage claims: RCW 49.48.040.
49.46.005 Declaration of necessity and police power.
Whereas the establishment of a minimum wage for employees is a subject of vital and imminent concern to the people of
this state and requires appropriate action by the legislature to
establish minimum standards of employment within the state
of Washington, therefore the legislature declares that in its
considered judgment the health, safety and the general welfare of the citizens of this state require the enactment of this
measure, and exercising its police power, the legislature
endeavors by this chapter to establish a minimum wage for
employees of this state to encourage employment opportunities within the state. The provisions of this chapter are
enacted in the exercise of the police power of the state for the
purpose of protecting the immediate and future health, safety
and welfare of the people of this state. [1961 ex.s. c 18 § 1.]
49.46.005
49.46.010 Definitions. As used in this chapter:
(1) "Director" means the director of labor and industries;
(2) "Wage" means compensation due to an employee by
reason of employment, payable in legal tender of the United
States or checks on banks convertible into cash on demand at
full face value, subject to such deductions, charges, or allowances as may be permitted by rules of the director;
(3) "Employ" includes to permit to work;
(4) "Employer" includes any individual, partnership,
association, corporation, business trust, or any person or
group of persons acting directly or indirectly in the interest of
an employer in relation to an employee;
(5) "Employee" includes any individual employed by an
employer but shall not include:
(a) Any individual (i) employed as a hand harvest laborer
and paid on a piece rate basis in an operation which has been,
and is generally and customarily recognized as having been,
paid on a piece rate basis in the region of employment; (ii)
who commutes daily from his or her permanent residence to
the farm on which he or she is employed; and (iii) who has
been employed in agriculture less than thirteen weeks during
the preceding calendar year;
(b) Any individual employed in casual labor in or about
a private home, unless performed in the course of the
employer's trade, business, or profession;
(c) Any individual employed in a bona fide executive,
administrative, or professional capacity or in the capacity of
outside salesman as those terms are defined and delimited by
rules of the director. However, those terms shall be defined
and delimited by the director of personnel pursuant to chapter
41.06 RCW for employees employed under the director of
personnel's jurisdiction;
(d) Any individual engaged in the activities of an educational, charitable, religious, state or local governmental body
or agency, or nonprofit organization where the employeremployee relationship does not in fact exist or where the services are rendered to such organizations gratuitously. If the
49.46.010
[Title 49 RCW—page 48]
individual receives reimbursement in lieu of compensation
for normally incurred out-of-pocket expenses or receives a
nominal amount of compensation per unit of voluntary service rendered, an employer-employee relationship is deemed
not to exist for the purpose of this section or for purposes of
membership or qualification in any state, local government or
publicly supported retirement system other than that provided
under chapter 41.24 RCW;
(e) Any individual employed full time by any state or
local governmental body or agency who provides voluntary
services but only with regard to the provision of the voluntary
services. The voluntary services and any compensation therefor shall not affect or add to qualification, entitlement or benefit rights under any state, local government, or publicly supported retirement system other than that provided under
chapter 41.24 RCW;
(f) Any newspaper vendor or carrier;
(g) Any carrier subject to regulation by Part 1 of the
Interstate Commerce Act;
(h) Any individual engaged in forest protection and fire
prevention activities;
(i) Any individual employed by any charitable institution
charged with child care responsibilities engaged primarily in
the development of character or citizenship or promoting
health or physical fitness or providing or sponsoring recreational opportunities or facilities for young people or members of the armed forces of the United States;
(j) Any individual whose duties require that he or she
reside or sleep at the place of his or her employment or who
otherwise spends a substantial portion of his or her work time
subject to call, and not engaged in the performance of active
duties;
(k) Any resident, inmate, or patient of a state, county, or
municipal correctional, detention, treatment or rehabilitative
institution;
(l) Any individual who holds a public elective or
appointive office of the state, any county, city, town, municipal corporation or quasi municipal corporation, political subdivision, or any instrumentality thereof, or any employee of
the state legislature;
(m) All vessel operating crews of the Washington state
ferries operated by the department of transportation;
(n) Any individual employed as a seaman on a vessel
other than an American vessel;
(6) "Occupation" means any occupation, service, trade,
business, industry, or branch or group of industries or
employment or class of employment in which employees are
gainfully employed;
(7) "Retail or service establishment" means an establishment seventy-five percent of whose annual dollar volume of
sales of goods or services, or both, is not for resale and is recognized as retail sales or services in the particular industry.
[2002 c 354 § 231; 1997 c 203 § 3; 1993 c 281 § 56; 1989 c 1
§ 1 (Initiative Measure No. 518, approved November 8,
1988); 1984 c 7 § 364; 1977 ex.s. c 69 § 1; 1975 1st ex.s. c
289 § 1; 1974 ex.s. c 107 § 1; 1961 ex.s. c 18 § 2; 1959 c 294
§ 1.]
Short title—Headings, captions not law—Severability—Effective
dates—2002 c 354: See RCW 41.80.907 through 41.80.910.
Construction—1997 c 203: See note following RCW 49.46.130.
Effective date—1993 c 281: See note following RCW 41.06.022.
(2004 Ed.)
Minimum Wage Act
Effective date—1989 c 1 (Initiative Measure No. 518, approved
November 8, 1988): "This act shall take effect January 1, 1989." [1989 c 1
§ 5.]
Severability—1984 c 7: See note following RCW 47.01.141.
Effect of offset of military pay on status of bona fide executive, administrative, and professional employees: RCW 73.16.080.
49.46.020
49.46.020 Minimum hourly wage. (1) Until January 1,
1999, every employer shall pay to each of his or her employees who has reached the age of eighteen years wages at a rate
of not less than four dollars and ninety cents per hour.
(2) Beginning January 1, 1999, and until January 1,
2000, every employer shall pay to each of his or her employees who has reached the age of eighteen years wages at a rate
of not less than five dollars and seventy cents per hour.
(3) Beginning January 1, 2000, and until January 1,
2001, every employer shall pay to each of his or her employees who has reached the age of eighteen years wages at a rate
of not less than six dollars and fifty cents per hour.
(4)(a) Beginning on January 1, 2001, and each following
January 1st as set forth under (b) of this subsection, every
employer shall pay to each of his or her employees who has
reached the age of eighteen years wages at a rate of not less
than the amount established under (b) of this subsection.
(b) On September 30, 2000, and on each following September 30th, the department of labor and industries shall calculate an adjusted minimum wage rate to maintain employee
purchasing power by increasing the current year's minimum
wage rate by the rate of inflation. The adjusted minimum
wage rate shall be calculated to the nearest cent using the
consumer price index for urban wage earners and clerical
workers, CPI-W, or a successor index, for the twelve months
prior to each September 1st as calculated by the United States
department of labor. Each adjusted minimum wage rate calculated under this subsection (4)(b) takes effect on the following January 1st.
(5) The director shall by regulation establish the minimum wage for employees under the age of eighteen years.
[1999 c 1 § 1 (Initiative Measure No. 688, approved November 3, 1998); 1993 c 309 § 1; 1989 c 1 § 2 (Initiative Measure
No. 518, approved November 8, 1988); 1975 1st ex.s. c 289 §
2; 1973 2nd ex.s. c 9 § 1; 1967 ex.s. c 80 § 1; 1961 ex.s. c 18
§ 3; 1959 c 294 § 2.]
49.46.065
(2) With the consent and cooperation of federal agencies
charged with the administration of federal labor laws, the
director may, for the purpose of carrying out his functions
and duties under this chapter, utilize the services of federal
agencies and their employees and, notwithstanding any other
provision of law, may reimburse such federal agencies and
their employees for services rendered for such purposes.
(3) Every employer subject to any provision of this chapter or of any order issued under this chapter shall make, keep,
and preserve such records of the persons employed by him
and of the wages, hours, and other conditions and practices of
employment maintained by him, and shall preserve such
records for such periods of time, and shall make reports
therefrom to the director as he shall prescribe by regulation as
necessary or appropriate for the enforcement of the provisions of this chapter or the regulations thereunder.
(4) The director is authorized to make such regulations
regulating, restricting, or prohibiting industrial homework as
are necessary or appropriate to prevent the circumvention or
evasion of and to safeguard the minimum wage rate prescribed in this chapter, and all existing regulations of the
director relating to industrial homework are hereby continued
in full force and effect. [1959 c 294 § 4.]
49.46.060
49.46.060 Exceptions for learners, apprentices, messengers, disabled. The director, to the extent necessary in
order to prevent curtailment of opportunities for employment, shall by regulations provide for (1) the employment of
learners, of apprentices, and of messengers employed primarily in delivering letters and messages, under special certificates issued pursuant to regulations of the director, at such
wages lower than the minimum wage applicable under RCW
49.46.020 and subject to such limitations as to time, number,
proportion, and length of service as the director shall prescribe, and (2) the employment of individuals whose earning
capacity is impaired by age or physical or mental deficiency
or injury, under special certificates issued by the director, at
such wages lower than the minimum wage applicable under
RCW 49.46.020 and for such period as shall be fixed in such
certificates. [1959 c 294 § 6.]
49.46.065
Effective date—1993 c 309: "This act shall take effect January 1,
1994." [1993 c 309 § 2.]
Effective date—1989 c 1 (Initiative Measure No. 518): See note following RCW 49.46.010.
Notification of employers: RCW 49.46.140.
49.46.040
49.46.040 Investigation—Services of federal agencies—Employer's records—Industrial homework. (1)
The director or his designated representatives may investigate and gather data regarding the wages, hours, and other
conditions and practices of employment in any industry subject to this chapter, and may enter and inspect such places and
such records (and make such transcriptions thereof), question
such employees, and investigate such facts, conditions, practices, or matters as he may deem necessary or appropriate to
determine whether any person has violated any provision of
this chapter, or which may aid in the enforcement of the provisions of this chapter.
(2004 Ed.)
49.46.065 Individual volunteering labor to state or
local governmental agency—Amount reimbursed for
expenses or received as nominal compensation not
deemed salary for rendering services or affecting public
retirement rights. When an individual volunteers his or her
labor to a state or local governmental body or agency and
receives pursuant to a statute or policy or an ordinance or resolution adopted by or applicable to the state or local governmental body or agency reimbursement in lieu of compensation at a nominal rate for normally incurred expenses or
receives a nominal amount of compensation per unit of voluntary service rendered such reimbursement or compensation
shall not be deemed a salary for the rendering of services or
for purposes of granting, affecting or adding to any qualification, entitlement or benefit rights under any state, local government or publicly supported retirement system other than
that provided under chapter 41.24 RCW. [1977 ex.s. c 69 §
2.]
[Title 49 RCW—page 49]
49.46.070
Title 49 RCW: Labor Regulations
49.46.070
49.46.070 Records of employer—Contents—Inspection—Sworn statement. Every employer subject to any provision of this chapter or of any regulation issued under this
chapter shall make, and keep in or about the premises
wherein any employee is employed, a record of the name,
address, and occupation of each of his employees, the rate of
pay, and the amount paid each pay period to each such
employee, the hours worked each day and each work week by
such employee, and such other information as the director
shall prescribe by regulation as necessary or appropriate for
the enforcement of the provisions of this chapter or of the
regulations thereunder. Such records shall be open for inspection or transcription by the director or his authorized representative at any reasonable time. Every such employer shall
furnish to the director or to his authorized representative on
demand a sworn statement of such records and information
upon forms prescribed or approved by the director. [1959 c
294 § 7.]
49.46.080
49.46.080 New or modified regulations—Judicial
review—Stay. (1) As new regulations or changes or modification of previously established regulations are proposed, the
director shall call a public hearing for the purpose of the consideration and establishment of such regulations following
the procedures used in the promulgation of standards of
safety under chapter 49.17 RCW.
(2) Any interested party may obtain a review of the
director's findings and order in the superior court of county of
petitioners' residence by filing in such court within sixty days
after the date of publication of such regulation a written petition praying that the regulation be modified or set aside. A
copy of such petition shall be served upon the director. The
finding of facts, if supported by evidence, shall be conclusive
upon the court. The court shall determine whether the regulation is in accordance with law. If the court determines that
such regulation is not in accordance with law, it shall remand
the case to the director with directions to modify or revoke
such regulation. If application is made to the court for leave
to adduce additional evidence by any aggrieved party, such
party shall show to the satisfaction of the court that such additional evidence is material, and that there were reasonable
grounds for the failure to adduce such evidence before the
director. If the court finds that such evidence is material and
that reasonable grounds exist for failure of the aggrieved
party to adduce such evidence in prior proceedings, the court
may remand the case to the director with directions that such
additional evidence be taken before the director. The director
may modify the findings and conclusions, in whole or in part,
by reason of such additional evidence.
(3) The judgment and decree of the court shall be final
except that it shall be subject to review by the supreme court
or the court of appeals as in other civil cases.
(4) The proceedings under this section shall not, unless
specifically ordered by the court, operate as a stay of an
administrative regulation issued under the provisions of this
chapter. The court shall not grant any stay of an administrative regulation unless the person complaining of such regulation shall file in the court an undertaking with a surety or
sureties satisfactory to the court for the payment to the
employees affected by the regulation, in the event such regulation is affirmed, of the amount by which the compensation
[Title 49 RCW—page 50]
such employees are entitled to receive under the regulation
exceeds the compensation they actually receive while such
stay is in effect. [1983 c 3 § 157; 1971 c 81 § 117; 1959 c 294
§ 8.]
49.46.090
49.46.090 Payment of wages less than chapter
requirements—Employer's liability—Assignment of
wage claim. (1) Any employer who pays any employee less
than wages to which such employee is entitled under or by
virtue of this chapter, shall be liable to such employee
affected for the full amount of such wage rate, less any
amount actually paid to such employee by the employer, and
for costs and such reasonable attorney's fees as may be
allowed by the court. Any agreement between such employee
and the employer to work for less than such wage rate shall be
no defense to such action.
(2) At the written request of any employee paid less than
the wages to which he is entitled under or by virtue of this
chapter, the director may take an assignment under this chapter or as provided in RCW 49.48.040 of such wage claim in
trust for the assigning employee and may bring any legal
action necessary to collect such claim, and the employer shall
be required to pay the costs and such reasonable attorney's
fees as may be allowed by the court. [1959 c 294 § 9.]
49.46.100
49.46.100 Prohibited acts of employer—Penalty. (1)
Any employer who hinders or delays the director or his
authorized representatives in the performance of his duties in
the enforcement of this chapter, or refuses to admit the director or his authorized representatives to any place of employment, or fails to make, keep, and preserve any records as
required under the provisions of this chapter, or falsifies any
such record, or refuses to make any record accessible to the
director or his authorized representatives upon demand, or
refuses to furnish a sworn statement of such record or any
other information required for the proper enforcement of this
chapter to the director or his authorized representatives upon
demand, or pays or agrees to pay wages at a rate less than the
rate applicable under this chapter, or otherwise violates any
provision of this chapter or of any regulation issued under
this chapter shall be deemed in violation of this chapter and
shall, upon conviction therefor, be guilty of a gross misdemeanor.
(2) Any employer who discharges or in any other manner
discriminates against any employee because such employee
has made any complaint to his employer, to the director, or
his authorized representatives that he has not been paid
wages in accordance with the provisions of this chapter, or
that the employer has violated any provision of this chapter,
or because such employee has caused to be instituted or is
about to cause to be instituted any proceeding under or
related to this chapter, or because such employee has testified
or is about to testify in any such proceeding shall be deemed
in violation of this chapter and shall, upon conviction therefor, be guilty of a gross misdemeanor. [1959 c 294 § 10.]
49.46.110
49.46.110 Collective bargaining not impaired. Nothing in this chapter shall be deemed to interfere with, impede,
or in any way diminish the right of employees to bargain collectively with their employers through representatives of
(2004 Ed.)
Minimum Wage Act
their own choosing in order to establish wages or other conditions of work in excess of the applicable minimum under
the provisions of this chapter. [1959 c 294 § 11.]
49.46.120
49.46.120 Chapter establishes minimum standards
and is supplementary to other laws—More favorable
standards unaffected. This chapter establishes a minimum
standard for wages and working conditions of all employees
in this state, unless exempted herefrom, and is in addition to
and supplementary to any other federal, state, or local law or
ordinance, or any rule or regulation issued thereunder. Any
standards relating to wages, hours, or other working conditions established by any applicable federal, state, or local law
or ordinance, or any rule or regulation issued thereunder,
which are more favorable to employees than the minimum
standards applicable under this chapter, or any rule or regulation issued hereunder, shall not be affected by this chapter
and such other laws, or rules or regulations, shall be in full
force and effect and may be enforced as provided by law.
[1961 ex.s. c 18 § 4; 1959 c 294 § 12.]
49.46.130
49.46.130 Minimum rate of compensation for
employment in excess of forty hour work week—Exceptions. (1) Except as otherwise provided in this section, no
employer shall employ any of his employees for a work week
longer than forty hours unless such employee receives compensation for his employment in excess of the hours above
specified at a rate not less than one and one-half times the
regular rate at which he is employed.
(2) This section does not apply to:
(a) Any person exempted pursuant to RCW
49.46.010(5). The payment of compensation or provision of
compensatory time off in addition to a salary shall not be a
factor in determining whether a person is exempted under
RCW 49.46.010(5)(c);
(b) Employees who request compensating time off in
lieu of overtime pay;
(c) Any individual employed as a seaman whether or not
the seaman is employed on a vessel other than an American
vessel;
(d) Seasonal employees who are employed at concessions and recreational establishments at agricultural fairs,
including those seasonal employees employed by agricultural
fairs, within the state provided that the period of employment
for any seasonal employee at any or all agricultural fairs does
not exceed fourteen working days a year;
(e) Any individual employed as a motion picture projectionist if that employee is covered by a contract or collective
bargaining agreement which regulates hours of work and
overtime pay;
(f) An individual employed as a truck or bus driver who
is subject to the provisions of the Federal Motor Carrier Act
(49 U.S.C. Sec. 3101 et seq. and 49 U.S.C. Sec. 10101 et
seq.), if the compensation system under which the truck or
bus driver is paid includes overtime pay, reasonably equivalent to that required by this subsection, for working longer
than forty hours per week;
(g) Any individual employed (i) on a farm, in the employ
of any person, in connection with the cultivation of the soil,
or in connection with raising or harvesting any agricultural or
(2004 Ed.)
49.46.130
horticultural commodity, including raising, shearing, feeding, caring for, training, and management of livestock, bees,
poultry, and furbearing animals and wildlife, or in the employ
of the owner or tenant or other operator of a farm in connection with the operation, management, conservation, improvement, or maintenance of such farm and its tools and equipment; or (ii) in packing, packaging, grading, storing or delivering to storage, or to market or to a carrier for transportation
to market, any agricultural or horticultural commodity; or
(iii) commercial canning, commercial freezing, or any other
commercial processing, or with respect to services performed
in connection with the cultivation, raising, harvesting, and
processing of oysters or in connection with any agricultural
or horticultural commodity after its delivery to a terminal
market for distribution for consumption;
(h) Any industry in which federal law provides for an
overtime payment based on a work week other than forty
hours. However, the provisions of the federal law regarding
overtime payment based on a work week other than forty
hours shall nevertheless apply to employees covered by this
section without regard to the existence of actual federal jurisdiction over the industrial activity of the particular employer
within this state. For the purposes of this subsection, "industry" means a trade, business, industry, or other activity, or
branch, or group thereof, in which individuals are gainfully
employed (section 3(h) of the Fair Labor Standards Act of
1938, as amended (Public Law 93-259));
(i) Any hours worked by an employee of a carrier by air
subject to the provisions of subchapter II of the Railway
Labor Act (45 U.S.C. Sec. 181 et seq.), when such hours are
voluntarily worked by the employee pursuant to a shift-trading practice under which the employee has the opportunity in
the same or in other work weeks to reduce hours worked by
voluntarily offering a shift for trade or reassignment.
(3) No employer shall be deemed to have violated subsection (1) of this section by employing any employee of a
retail or service establishment for a work week in excess of
the applicable work week specified in subsection (1) of this
section if:
(a) The regular rate of pay of the employee is in excess
of one and one-half times the minimum hourly rate required
under RCW 49.46.020; and
(b) More than half of the employee's compensation for a
representative period, of not less than one month, represents
commissions on goods or services.
In determining the proportion of compensation representing commissions, all earnings resulting from the application of a bona fide commission rate is to be deemed commissions on goods or services without regard to whether the
computed commissions exceed the draw or guarantee.
(4) No employer of commissioned salespeople primarily
engaged in the business of selling automobiles, trucks, recreational vessels, recreational vessel trailers, recreational vehicle trailers, recreational campers, manufactured housing, or
farm implements to ultimate purchasers shall violate subsection (1) of this section with respect to such commissioned
salespeople if the commissioned salespeople are paid the
greater of:
(a) Compensation at the hourly rate, which may not be
less than the rate required under RCW 49.46.020, for each
hour worked up to forty hours per week, and compensation of
[Title 49 RCW—page 51]
49.46.140
Title 49 RCW: Labor Regulations
one and one-half times that hourly rate for all hours worked
over forty hours in one week; or
(b) A straight commission, a salary plus commission, or
a salary plus bonus applied to gross salary.
(5) No public agency shall be deemed to have violated
subsection (1) of this section with respect to the employment
of any employee in fire protection activities or any employee
in law enforcement activities (including security personnel in
correctional institutions) if: (a) In a work period of twentyeight consecutive days the employee receives for tours of
duty which in the aggregate exceed two hundred forty hours;
or (b) in the case of such an employee to whom a work period
of at least seven but less than twenty-eight days applies, in his
or her work period the employee receives for tours of duty
which in the aggregate exceed a number of hours which bears
the same ratio to the number of consecutive days in his or her
work period as two hundred forty hours bears to twenty-eight
days; compensation at a rate not less than one and one-half
times the regular rate at which he or she is employed. [1998
c 239 § 2. Prior: 1997 c 311 § 1; 1997 c 203 § 2; 1995 c 5 §
1; 1993 c 191 § 1; 1992 c 94 § 1; 1989 c 104 § 1; prior: 1977
ex.s. c 4 § 1; 1977 ex.s. c 74 § 1; 1975 1st ex.s. c 289 § 3.]
Findings—Intent—1998 c 239: "The legislature finds that employees
in the airline industry have a long-standing practice and tradition of trading
shifts voluntarily among themselves. The legislature also finds that federal
law exempts airline employees from the provisions of federal overtime regulations. This act is intended to specify that airline industry employers are
not required to pay overtime compensation to an employee agreeing to work
additional hours for a coemployee." [1998 c 239 § 1.]
Intent—Collective bargaining agreements—1998 c 239: "This act
does not alter the terms, conditions, or practices contained in any collective
bargaining agreement." [1998 c 239 § 3.]
Retroactive application—1998 c 239: "This act is remedial in nature
and applies retroactively." [1998 c 239 § 4.]
Severability—1998 c 239: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1998 c 239 § 5.]
Construction—1997 c 203: "Nothing in this act shall be construed to
alter the terms, conditions, or practices contained in any collective bargaining agreement in effect at the time of the effective date of this act [July 27,
1997] until the expiration date of such agreement." [1997 c 203 § 4.]
Intent—Application—1995 c 5: "This act is intended to clarify the
original intent of RCW 49.46.010(5)(c). This act applies to all administrative
and judicial actions commenced on or after February 1, 1995, and pending
on March 30, 1995, and such actions commenced on or after March 30,
1995." [1995 c 5 § 2.]
Effective date—1995 c 5: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[March 30, 1995]." [1995 c 5 § 3.]
49.46.140
49.46.140 Notification of employers. The director of
the department of labor and industries and the commissioner
of employment security shall each notify employers of the
requirements of chapter 289, Laws of 1975 1st ex. sess.
through their regular quarterly notices to employers. [1975
1st ex.s. c 289 § 4.]
49.46.900
49.46.900 Severability—1959 c 294. If any provision
of this chapter, or the application thereof to any person or circumstances, is held invalid, the remainder of the chapter and
the application thereof to other persons or circumstances
shall not be affected thereby. [1959 c 294 § 13.]
[Title 49 RCW—page 52]
49.46.910 Short title. This chapter may be known and
cited as the "Washington Minimum Wage Act." [1961 ex.s.
c 18 § 6; 1959 c 294 § 14.]
49.46.910
49.46.920 Effective date—1975 1st ex.s. c 289. This
1975 amendatory act is necessary for the immediate preservation of the public peace, health, and safety, the support of
the state government and its existing public institutions, and
shall take effect September 1, 1975. [1975 1st ex.s. c 289 §
5.]
49.46.920
Chapter 49.48
Chapter 49.48 RCW
WAGES—PAYMENT—COLLECTION
Sections
49.48.010
49.48.020
49.48.030
49.48.040
49.48.050
49.48.060
49.48.070
49.48.075
49.48.080
49.48.090
49.48.100
49.48.115
49.48.120
49.48.150
49.48.160
49.48.170
49.48.180
49.48.190
49.48.200
49.48.210
49.48.220
Payment of wages due to employee ceasing work to be at end
of pay period—Exceptions—Authorized deductions or withholdings.
Penalty for noncompliance with RCW 49.48.010 through
49.48.030 and 49.48.060.
Attorney's fee in action on wages—Exception.
Enforcement of wage claims—Issuance of subpoenas—Compliance.
Remedy cumulative.
Director may require bond after assignment of wage claims—
Court action—Penalty for failure to pay wage claim.
Enforcement.
Reciprocal enforcement agreements with other states.
Public employees excluded.
Assignment of wages—Requisites to validity.
Written consent of spouse required.
Employer defined.
Payment on employee's death.
Sales representatives—Definitions.
Sales representatives—Contract—Agreement.
Sales representatives—Payment.
Sales representatives—Principal considered doing business in
this state.
Sales representatives—Rights and remedies not exclusive—
Waiver void.
Overpayment of wages—Government employees.
Overpayment of wages—Notice—Review—Appeal.
Rules.
Chattel liens: Chapter 60.08 RCW.
Mechanics' and materialmen's liens: Chapter 60.04 RCW.
49.48.010 Payment of wages due to employee ceasing
work to be at end of pay period—Exceptions—Authorized deductions or withholdings. When any employee
shall cease to work for an employer, whether by discharge or
by voluntary withdrawal, the wages due him on account of
his employment shall be paid to him at the end of the established pay period: PROVIDED, HOWEVER, That this paragraph shall not apply when workers are engaged in an
employment that normally involves working for several
employers in the same industry interchangeably, and the several employers or some of them cooperate to establish a plan
for the weekly payment of wages at a central place or places
and in accordance with a unified schedule of paydays providing for at least one payday each week; but this subsection
shall not apply to any such plan until ten days after notice of
their intention to set up such a plan shall have been given to
the director of labor and industries by the employers who
cooperate to establish the plan; and having once been established, no such plan can be abandoned except after notice of
their intention to abandon such plan has been given to the
director of labor and industries by the employers intending to
abandon the plan: PROVIDED FURTHER, That the duty to
49.48.010
(2004 Ed.)
Wages—Payment—Collection
pay an employee forthwith shall not apply if the labor-management agreement under which the employee has been
employed provides otherwise.
It shall be unlawful for any employer to withhold or
divert any portion of an employee's wages unless the deduction is:
(1) Required by state or federal law; or
(2) Specifically agreed upon orally or in writing by the
employee and employer; or
(3) For medical, surgical or hospital care or service, pursuant to any rule or regulation: PROVIDED, HOWEVER,
That the deduction is openly, clearly and in due course
recorded in the employer's books and records.
Paragraph *three of this section shall not be construed to
affect the right of any employer or former employer to sue
upon or collect any debt owed to said employer or former
employer by his employees or former employees. [1971 ex.s.
c 55 § 1; 1947 c 181 § 1; 1905 c 112 § 1; 1888 c 128 § 1; Rem.
Supp. 1947 § 7594.]
*Reviser's note: The reference to paragraph three of this section
appears to be erroneous. An amendment to Engrossed Senate Bill No. 137
[1971 ex.s. c 55] deleted the first paragraph of the section without making a
corresponding change in the reference to "paragraph three." It was apparently intended that the phrase "paragraph three of this section" refer to the
paragraph beginning "It shall be unlawful . . .," which now appears as the
second paragraph of the section.
Saving—1888 c 128: "This act is not to be construed as affecting any
bona fide contract heretofore entered into contrary to its provisions and existing at the date of the passage hereof, and continuing by reason of limitation
of said contract being still in force." [1888 c 128 § 4; no RRS.]
Effective date—1888 c 128: "This act is to take effect on and after its
approval." [1888 c 128 § 5; no RRS.]
General repealer—1888 c 128: "All laws or parts of laws in conflict
with this act be and the same are hereby repealed." [1888 c 128 § 6; no
RRS.]
The foregoing annotations apply to RCW 49.48.010 through 49.48.030.
49.48.020
49.48.020 Penalty for noncompliance with RCW
49.48.010 through 49.48.030 and 49.48.060. Any person,
firm, or corporation which violates any of the provisions of
RCW 49.48.010 through 49.48.030 and 49.48.060 shall be
guilty of a misdemeanor. [1971 ex.s. c 55 § 2; 1933 ex.s. c 20
§ 1; 1888 c 128 § 2; RRS § 7595.]
Wages—Deductions—Rebates, authorized withholding: RCW 49.52.060.
49.48.060
(b) Order the payment of all wages owed the workers
and institute actions necessary for the collection of the sums
determined owed; and
(c) Take assignments of wage claims and prosecute
actions for the collection of wages of persons who are financially unable to employ counsel when in the judgment of the
director of the department the claims are valid and enforceable in the courts.
(2) The director of the department or any authorized representative may, for the purpose of carrying out RCW
49.48.040 through 49.48.080: (a) Issue subpoenas to compel
the attendance of witnesses or parties and the production of
books, papers, or records; (b) administer oaths and examine
witnesses under oath; (c) take the verification of proof of
instruments of writing; and (d) take depositions and affidavits. If assignments for wage claims are taken, court costs
shall not be payable by the department for prosecuting such
suits.
(3) The director shall have a seal inscribed "Department
of Labor and Industries—State of Washington" and all courts
shall take judicial notice of such seal. Obedience to subpoenas issued by the director or authorized representative shall
be enforced by the courts in any county.
(4) The director or authorized representative shall have
free access to all places and works of labor. Any employer or
any agent or employee of such employer who refuses the
director or authorized representative admission therein, or
who, when requested by the director or authorized representative, wilfully neglects or refuses to furnish the director or
authorized representative any statistics or information pertaining to his or her lawful duties, which statistics or information may be in his or her possession or under the control of
the employer or agent, shall be guilty of a misdemeanor.
[1987 c 172 § 1; 1935 c 96 § 1; RRS § 7596-1.]
49.48.050
49.48.050 Remedy cumulative. Nothing herein contained shall be construed to limit the authority of the prosecuting attorney of any county to prosecute actions, both civil
and criminal, for such violations of RCW 49.48.040 through
49.48.080 as may come to his knowledge, or to enforce the
provisions hereof independently and without specific direction of the director of labor and industries. [1935 c 96 § 2;
RRS § 7596-2.]
49.48.030
49.48.030 Attorney's fee in action on wages—Exception. In any action in which any person is successful in
recovering judgment for wages or salary owed to him, reasonable attorney's fees, in an amount to be determined by the
court, shall be assessed against said employer or former
employer: PROVIDED, HOWEVER, That this section shall
not apply if the amount of recovery is less than or equal to the
amount admitted by the employer to be owing for said wages
or salary. [1971 ex.s. c 55 § 3; 1888 c 128 § 3; RRS § 7596.]
49.48.040
49.48.040 Enforcement of wage claims—Issuance of
subpoenas—Compliance. (1) The department of labor and
industries may:
(a) Upon obtaining information indicating an employer
may be committing a violation under chapters 39.12, 49.46,
and 49.48 RCW, conduct investigations to ensure compliance
with chapters 39.12, 49.46, and 49.48 RCW;
(2004 Ed.)
49.48.060
49.48.060 Director may require bond after assignment of wage claims—Court action—Penalty for failure
to pay wage claim. (1) If upon investigation by the director,
after taking assignments of any wage claim under RCW
49.48.040, it appears to the director that the employer is representing to his employees that he is able to pay wages for
their services and that the employees are not being paid for
their services, the director may require the employer to give a
bond in such sum as the director deems reasonable and adequate in the circumstances, with sufficient surety, conditioned that the employer will for a definite future period not
exceeding six months conduct his business and pay his
employees in accordance with the laws of the state of Washington.
(2) If within ten days after demand for such bond the
employer fails to provide the same, the director may com[Title 49 RCW—page 53]
49.48.070
Title 49 RCW: Labor Regulations
mence a suit against the employer in the superior court of
appropriate jurisdiction to compel him to furnish such bond
or cease doing business until he has done so. The employer
shall have the burden of proving the amount thereof to be
excessive.
(3) If the court finds that there is just cause for requiring
such bond and that the same is reasonable, necessary or
appropriate to secure the prompt payment of the wages of the
employees of such employer and his compliance with RCW
49.48.010 through 49.48.080, the court shall enjoin such
employer from doing business in this state until the requirement is met, or shall make other, and may make further,
orders appropriate to compel compliance with the requirement.
Upon being informed of a wage claim against an
employer or former employer, the director shall, if such claim
appears to be just, immediately notify the employer or former
employer, of such claim by mail. If the employer or former
employer fails to pay the claim or make satisfactory explanation to the director of his failure to do so, within thirty days
thereafter, the employer or former employer shall be liable to
a penalty of ten percent of that portion of the claim found to
be justly due. The director shall have a cause of action against
the employer or former employer for the recovery of such
penalty, and the same may be included in any subsequent
action by the director on said wage claim, or may be exercised separately after adjustment of such wage claim without
court action. [1971 ex.s. c 55 § 4; 1935 c 96 § 3; RRS § 75963.]
in the courts of Washington upon assigned claims for wages,
judgments, and demands arising in such other state in the
same manner and to the same extent that such actions by the
director are authorized when arising in Washington. Such
actions may be maintained only in cases where such other
state by law or reciprocal agreement extends a like comity to
cases arising in Washington. [1985 c 48 § 1.]
49.48.080
49.48.080 Public employees excluded. Nothing in
RCW 49.48.040 through 49.48.080 shall apply to the payment of wages or compensation of employees directly
employed by any county, incorporated city or town, or other
municipal corporation. Nor shall anything herein apply to
employees, directly employed by the state, any department,
bureau, office, board, commission or institution hereof.
[1935 c 96 § 5; RRS § 7596-5.]
49.48.090
49.48.090 Assignment of wages—Requisites to validity. No assignment of, or order for, wages to be earned in the
future to secure a loan of less than three hundred dollars, shall
be valid against an employer of the person making said
assignment or order unless said assignment or order is
accepted in writing by the employer, and said assignment or
order, and the acceptance of the same, have been filed and
recorded with the county auditor of the county where the
party making said assignment or order resides, if a resident of
the state, or in which he is employed, if not a resident of the
state. [1909 c 32 § 1; RRS § 7597.]
49.48.100
49.48.070
49.48.070 Enforcement. It shall be the duty of the
director of labor and industries to inquire diligently for any
violations of RCW 49.48.040 through 49.48.080, and to institute the actions for penalties herein provided, and to enforce
generally the provisions of RCW 49.48.040 through
49.48.080. [1935 c 96 § 4; RRS § 7596-4.]
49.48.100 Written consent of spouse required. No
assignment of, or order for, wages to be earned in the future
shall be valid, when made by a married person, unless the
written consent of the other spouse to the making of such
assignment or order is attached thereto. [1972 ex.s. c 108 § 7;
1909 c 32 § 2; RRS § 7598.]
49.48.115
49.48.075
49.48.075 Reciprocal enforcement agreements with
other states. (1) The director of labor and industries, or the
director's designee, may enter into reciprocal agreements
with the labor department or corresponding agency of any
other state or with the person, board, officer, or commission
authorized to act on behalf of such department or agency, for
the collection in such other states of claims or judgments for
wages and other demands based upon claims assigned to the
director.
(2) The director, or the director's designee, may, to the
extent provided for by any reciprocal agreement entered into
by law or with an agency of another state as herein provided,
maintain actions in the courts of such other state for the collection of claims for wages, judgments, and other demands
and may assign such claims, judgments, and demands to the
labor department or agency of such other state for collection
to the extent that such an assignment may be permitted or
provided for by the law of such state or reciprocal agreement.
(3) The director, or the director's designee, may, upon
the written consent of the labor department or corresponding
agency of any other state or of the person, board, officer, or
commission of such state authorized to act on behalf of such
labor department or corresponding agency, maintain actions
[Title 49 RCW—page 54]
49.48.115 Employer defined. For the purposes of
RCW 49.48.120 the word "employer" shall include every
person, firm, partnership, corporation, the state of Washington, and all municipal corporations. [1939 c 139 § 1; RRS §
1464-1. Formerly RCW 49.48.120, part.]
49.48.120
49.48.120 Payment on employee's death. (1) If at the
time of the death of any person, his or her employer is
indebted to him or her for work, labor, and services performed, and no executor or administrator of his or her estate
has been appointed, the employer shall upon the request of
the surviving spouse pay the indebtedness in an amount as
may be due not exceeding the sum of two thousand five hundred dollars, to the surviving spouse, or if the decedent leaves
no surviving spouse, then to the decedent's child or children,
or if no children, then to the decedent's father or mother.
(2) In the event the decedent's employer is the state of
Washington, then the amount of the indebtedness that can be
paid under subsection (1) of this section shall not exceed ten
thousand dollars. At the beginning of each biennium, the
director of financial management may by administrative policy adjust the amount of indebtedness that can be paid under
this subsection to levels not to exceed the percentage increase
in the consumer price index for all urban consumers, CPI-U,
(2004 Ed.)
Wages—Payment—Collection
for Seattle, or a successor index, for the previous biennium as
calculated by the United States department of labor.
Adjusted dollar amounts of indebtedness shall be rounded to
the nearest five hundred dollar increment.
(3) If the decedent and the surviving spouse have entered
into a community property agreement that meets the requirements of RCW 26.16.120, and the right to the indebtedness
became the sole property of the surviving spouse upon the
death of the decedent, the employer shall pay to the surviving
spouse the total of the indebtedness, or that portion which is
governed by the community property agreement, upon presentation of the agreement accompanied by an affidavit or
declaration of the surviving spouse stating that the agreement
was executed in good faith between the parties and had not
been rescinded by the parties before the decedent's death.
(4) In all cases, the employer shall require proof of the
claimant's relationship to the decedent by affidavit or declaration, and shall require the claimant to acknowledge receipt of
the payment in writing.
(5) Any payments made by an employer pursuant to the
provisions of RCW 49.48.115 and 49.48.120 shall operate as
a full and complete discharge of the employer's indebtedness
to the extent of the payment, and no employer shall thereafter
be liable to the decedent's estate, or the decedent's executor or
administrator thereafter appointed.
(6) The employer may also pay the indebtedness upon
presentation of an affidavit as provided in RCW 11.62.010.
[2003 c 122 § 1; 1981 c 333 § 2; 1974 ex.s. c 117 § 42; 1967
c 210 § 1; 1939 c 139 § 2; RRS § 1464-2. FORMER PART
OF SECTION: 1939 c 139 § 1; RRS § 1464-1 now codified
as RCW 49.48.115.]
Application, construction—Severability—Effective date—1974
ex.s. c 117: See RCW 11.02.080 and notes following.
49.48.150
49.48.150 Sales representatives—Definitions. Unless
the context clearly requires otherwise, the definitions in this
section apply throughout RCW 49.48.160 through 49.48.190.
(1) "Commission" means compensation paid a sales representative by a principal in an amount based on a percentage
of the dollar amount of certain orders for or sales of the principal's product.
(2) "Principal" means a person, whether or not the person
has a permanent or fixed place of business in this state, who:
(a) Manufactures, produces, imports, or distributes a
product for sale to customers who purchase the product for
resale;
(b) Uses a sales representative to solicit orders for the
product; and
(c) Compensates the sales representative in whole or in
part by commission.
(3) "Sales representative" means a person who solicits,
on behalf of a principal, orders for the purchase at wholesale
of the principal's product, but does not include a person who
places orders for his own account for resale, or purchases for
his own account for resale, or sells or takes orders for the
direct sale of products to the ultimate consumer. [1992 c 177
§ 1.]
Severability—1992 c 177: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1992 c 177 § 7.]
(2004 Ed.)
49.48.200
49.48.160
49.48.160 Sales representatives—Contract—Agreement. (1) A contract between a principal and a sales representative under which the sales representative is to solicit
wholesale orders within this state must be in writing and must
set forth the method by which the sales representative's commission is to be computed and paid. The principal shall provide the sales representative with a copy of the contract. A
provision in the contract establishing venue for an action arising under the contract in a state other than this state is void.
(2) When no written contract has been entered into, any
agreement between a sales representative and a principal is
deemed to incorporate the provisions of RCW 49.48.150
through 49.48.190.
(3) During the course of the contract, a sales representative shall be paid the earned commission and all other moneys earned or payable in accordance with the agreed terms of
the contract, but no later than thirty days after receipt of payment by the principal for products or goods sold on behalf of
the principal by the sales representative.
Upon termination of a contract, whether or not the agreement is in writing, all earned commissions due to the sales
representative shall be paid within thirty days after receipt of
payment by the principal for products or goods sold on behalf
of the principal by the sales representative, including earned
commissions not due when the contract is terminated. [1992
c 177 § 2.]
Severability—1992 c 177: See note following RCW 49.48.150.
49.48.170
49.48.170 Sales representatives—Payment. A principal shall pay wages and commissions at the usual place of
payment unless the sales representative requests that the
wages and commissions be sent through registered mail. If, in
accordance with a request by the sales representative, the
sales representative's wages and commissions are sent
through the mail, the wages and commissions are deemed to
have been paid as of the date of their registered postmark.
[1992 c 177 § 3.]
Severability—1992 c 177: See note following RCW 49.48.150.
49.48.180
49.48.180 Sales representatives—Principal considered doing business in this state. A principal who is not a
resident of this state and who enters into a contract subject to
RCW 49.48.150 through 49.48.190 is considered to be doing
business in this state for purposes of the exercise of personal
jurisdiction over the principal. [1992 c 177 § 4.]
Severability—1992 c 177: See note following RCW 49.48.150.
49.48.190
49.48.190 Sales representatives—Rights and remedies not exclusive—Waiver void. (1) RCW 49.48.150
through 49.48.190 supplement but do not supplant any other
rights and remedies enjoyed by sales representatives.
(2) A provision of RCW 49.48.150 through 49.48.190
may not be waived, whether by express waiver or by attempt
to make a contract or agreement subject to the laws of another
state. A waiver of a provision of RCW 49.48.150 through
49.48.190 is void. [1992 c 177 § 5.]
Severability—1992 c 177: See note following RCW 49.48.150.
49.48.200
49.48.200 Overpayment of wages—Government
employees. (1) Debts due the state or a county or city for the
[Title 49 RCW—page 55]
49.48.210
Title 49 RCW: Labor Regulations
overpayment of wages to their respective employees may be
recovered by the employer by deductions from subsequent
wage payments as provided in RCW 49.48.210, or by civil
action. If the overpayment is recovered by deduction from
the employee's subsequent wages, each deduction shall not
exceed: (a) Five percent of the employee's disposable earnings in a pay period other than the final pay period; or (b) the
amount still outstanding from the employee's disposable
earnings in the final pay period. The deductions from wages
shall continue until the overpayment is fully recouped.
(2) Nothing in this section or RCW 49.48.210 or
49.48.220 prevents: (a) An employee from making payments
in excess of the amount specified in subsection (1)(a) of this
section to an employer; or (b) an employer and employee
from agreeing to a different overpayment amount than that
specified in the notice in RCW 49.48.210(1) or to a method
other than a deduction from wages for repayment of the overpayment amount. [2004 c 7 § 1; 2003 c 77 § 1.]
Severability—2004 c 7: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [2004 c 7 § 3.]
49.48.210
49.48.210 Overpayment of wages—Notice—
Review—Appeal. (1) Except as provided in subsection (10)
of this section, when an employer determines that an
employee was overpaid wages, the employer shall provide
written notice to the employee. The notice shall include the
amount of the overpayment, the basis for the claim, a demand
for payment within twenty calendar days of the date on which
the employee received the notice, and the rights of the
employee under this section.
(2) The notice may be served upon the employee in the
manner prescribed for the service of a summons in a civil
action, or be mailed by certified mail, return receipt
requested, to the employee at his or her last known address.
(3) Within twenty calendar days after receiving the
notice from the employer that an overpayment has occurred,
the employee may request, in writing, that the employer
review its finding that an overpayment has occurred. The
employee may choose to have the review conducted through
written submission of information challenging the overpayment or through a face-to-face meeting with the employer. If
the request is not made within the twenty-day period as provided in this subsection, the employee may not further challenge the overpayment and has no right to further agency
review, an adjudicative proceeding, or judicial review.
(4) Upon receipt of an employee's written request for
review of the overpayment, the employer shall review the
employee's challenge to the overpayment. Upon completion
of the review, the employer shall notify the employee in writing of the employer's decision regarding the employee's challenge. The notification must be sent by certified mail, return
receipt requested, to the employee at his or her last known
address.
(5) If the employee is dissatisfied with the employer's
decision regarding the employee's challenge to the overpayment, the employee may request an adjudicative proceeding
governed by the administrative procedure act, chapter 34.05
RCW or, in the case of a county or city employee, an adjudicative proceeding provided pursuant to ordinance or resolu[Title 49 RCW—page 56]
tion of the county or city. The employee's application for an
adjudicative proceeding must be in writing, state the basis for
contesting the overpayment notice, and include a copy of the
employer's notice of overpayment. The application must be
served on and received by the employer within twenty-eight
calendar days of the employee's receipt of the employer's
decision following review of the employee's challenge. Notwithstanding RCW 34.05.413(3), agencies may not vary the
requirements of this subsection (5) by rule or otherwise. The
employee must serve the employer by certified mail, return
receipt requested.
(6) If the employee does not request an adjudicative proceeding within the twenty-eight-day period, the amount of
the overpayment provided in the notice shall be deemed final
and the employer may proceed to recoup the overpayment as
provided in this section and RCW 49.48.200.
(7) Where an adjudicative proceeding has been
requested, the presiding or reviewing officer shall determine
the amount, if any, of the overpayment received by the
employee.
(8) If the employee fails to attend or participate in the
adjudicative proceeding, upon a showing of valid service, the
presiding or reviewing officer may enter an administrative
order declaring the amount claimed in the notice sent to the
employee after the employer's review of the employee's challenge to the overpayment to be assessed against the employee
and subject to collection action by the employer as provided
in RCW 49.48.200.
(9) Failure to make an application for a review by the
employer as provided in subsections (3) and (4) of this section or an adjudicative proceeding within twenty-eight calendar days of the date of receiving notice of the employer's
decision after review of the overpayment shall result in the
establishment of a final debt against the employee in the
amount asserted by the employer, which debt shall be collected as provided in RCW 49.48.200.
(10) When an employer determines that an employee
covered by a collective bargaining agreement was overpaid
wages, the employer shall provide written notice to the
employee. The notice shall include the amount of the overpayment, the basis for the claim, and the rights of the
employee under the collective bargaining agreement. Any
dispute relating to the occurrence or amount of the overpayment shall be resolved using the grievance procedures contained in the collective bargaining agreement.
(11) As used in this section or RCW 49.48.210
[49.48.200] and 49.48.220:
(a) "City" means city or town;
(b) "Employer" means the state of Washington or a
county or city, and any of its agencies, institutions, boards, or
commissions; and
(c) "Overpayment" means a payment of wages for a pay
period that is greater than the amount earned for a pay period.
[2004 c 7 § 2; 2003 c 77 § 2.]
Severability—2004 c 7: See note following RCW 49.48.200.
49.48.220
49.48.220 Rules. The office of financial management
shall adopt the rules necessary to implement chapter 77,
Laws of 2003. [2003 c 77 § 3.]
(2004 Ed.)
Wages—Deductions—Contributions—Rebates
Chapter 49.52
Chapter 49.52 RCW
WAGES—DEDUCTIONS—
CONTRIBUTIONS—REBATES
Sections
49.52.010
49.52.020
49.52.030
49.52.040
49.52.050
49.52.060
49.52.070
49.52.080
49.52.090
Employees' benefit deductions and employer contributions are
trust funds—Enforcement.
Lien of party rendering service.
Deductions in extrahazardous employment—Medical aid fund
deductions excluded.
Actions to recover for service—Lien—Priority.
Rebates of wages—False records—Penalty.
Authorized withholding.
Civil liability for double damages.
Presumption as to intent.
Rebates of wages on public works—Penalty.
Chattel liens: Chapter 60.08 RCW.
Mechanics' and materialmen's liens: Chapter 60.04 RCW.
Mutual savings bank employees, pension, retirement, or health insurance
benefits: RCW 32.04.082.
Public employees, payroll deductions: RCW 41.04.020, 41.04.030,
41.04.035, and 41.04.036.
49.52.050
eys realized by any employer from the employer's employees
either by collection or by deduction from the wages or pay of
employees intended or to be used for the furnishing to workers engaged in extrahazardous work, their families or dependents, of medical, surgical or hospital care and treatment, or
for nursing, ambulance service, burial or any or all of the
above enumerated services, or any service incidental to or
furnished or rendered because of sickness, disease, accident
or death, and all moneys owing by any employer therefor,
shall be and remain a fund for the purposes for which such
moneys are intended to be used, and shall not constitute or
become any part of the assets of the employer making such
collections or deductions: PROVIDED, HOWEVER, That
RCW 49.52.030 and 49.52.040 shall not apply to moneys
collected or deducted as aforesaid for, or owing by employers
to the state medical aid fund. Such moneys shall be paid over
promptly to the physician or surgeon or hospital association
or other parties to which such moneys are due and for the purposes for which such collections or deductions were made.
[1989 c 12 § 16; 1929 c 136 § 1; RRS § 7713-1.]
49.52.010
49.52.010 Employees' benefit deductions and
employer contributions are trust funds—Enforcement.
All moneys collected by any employer from his or its
employees and all money to be paid by any employer as his
contribution for furnishing, either directly, or through contract, or arrangement with a hospital association, corporation,
firm or individual, of medicine, medical or surgical treatment, nursing, hospital service, ambulance service, dental
service, burial service, or any or all of the above enumerated
services, or any other necessary service, contingent upon
sickness, accident or death, are hereby declared to be a trust
fund for the purposes for which the same are collected. The
trustees (or their administrator, representative, or agent under
direction of the trustees) of such fund are authorized to take
such action as is deemed necessary to ensure that the
employer contributions are made including, but not limited to
filing actions at law, and filing liens against moneys due to
the employer from the performance of labor or furnishing of
materials to which the employees contributed their services.
Such trust fund is subject to the provisions of *chapter 48.52
RCW. [1975 c 34 § 1; 1927 c 307 § 1; RRS § 7614-1.]
*Reviser's note: Chapter 48.52 RCW was repealed by 1979 ex.s. c 34
§ 1.
49.52.040
49.52.040 Actions to recover for service—Lien—Priority. If any such employer shall default in any such payment to any physician, surgeon, hospital, hospital association
or any other parties to whom any such payment is due, the
sum so due may be collected by an action at law in the name
of the physician, surgeon, hospital, hospital association or
any other party to whom such payment is owing, or their
assigns and against such defaulting employer, and in addition
to such action, such claims shall have the same priority and
lien rights as granted to the state for claims due the accident
and medical aid funds by section 7682 of Remington's Compiled Statutes of Washington, 1922 [RCW 51.16.150 through
51.16.170], and acts amendatory thereto, which priority and
lien rights shall be enforced in the same manner and under the
same conditions as provided in said section 7682 [RCW
51.16.150 through 51.16.170]: PROVIDED, HOWEVER,
That the said claims for physicians, surgeons, hospitals and
hospital associations and others shall be secondary and inferior to any claims of the state and to any claims for labor.
Such right of action shall be in addition to any other right of
action or remedy. [1929 c 136 § 2; RRS § 7713-2.]
49.52.050
49.52.020
49.52.020 Lien of party rendering service. In case any
employer collecting moneys from his employees or making
contributions to any type of benefit plan for any or all of the
purposes specified in RCW 49.52.010, shall enter into a contract or arrangement with any hospital association, corporation, firm or individual, to furnish any such service to its
employees, the association, corporation, firm or individual
contracting to furnish such services, shall have a lien upon
such trust fund prior to all other liens except taxes. The lien
hereby created shall attach from the date of the arrangement
or contract to furnish such services and may be foreclosed in
the manner provided by law for the foreclosure of other liens
on personal property. [1975 c 34 § 2; 1927 c 307 § 2; RRS §
7614-2.]
49.52.030
49.52.030 Deductions in extrahazardous employment—Medical aid fund deductions excluded. All mon(2004 Ed.)
49.52.050 Rebates of wages—False records—Penalty. Any employer or officer, vice principal or agent of any
employer, whether said employer be in private business or an
elected public official, who
(1) Shall collect or receive from any employee a rebate
of any part of wages theretofore paid by such employer to
such employee; or
(2) Wilfully and with intent to deprive the employee of
any part of his wages, shall pay any employee a lower wage
than the wage such employer is obligated to pay such
employee by any statute, ordinance, or contract; or
(3) Shall wilfully make or cause another to make any
false entry in any employer's books or records purporting to
show the payment of more wages to an employee than such
employee received; or
(4) Being an employer or a person charged with the duty
of keeping any employer's books or records shall wilfully fail
[Title 49 RCW—page 57]
49.52.060
Title 49 RCW: Labor Regulations
or cause another to fail to show openly and clearly in due
course in such employer's books and records any rebate of or
deduction from any employee's wages; or
(5) Shall wilfully receive or accept from any employee
any false receipt for wages;
Shall be guilty of a misdemeanor. [1941 c 72 § 1; 1939
c 195 § 1; Rem. Supp. 1941 § 7612-21.]
work within this state, whether such work is done directly for
the state, or public body or officer thereof, or county, city and
county, city, town, township, district or other political subdivision of the said state or for any contractor or subcontractor
engaged in such public work for such an awarding or public
body or officer, shall be guilty of a gross misdemeanor.
[1935 c 29 § 1; RRS § 10320-1.]
Severability—1939 c 195: "If any section, subsection, sentence or
clause of this act shall be adjudged unconstitutional, such adjudication shall
not affect the validity of the act as a whole or of any section, subsection, sentence or clause thereof not adjudged unconstitutional." [1939 c 195 § 5; RRS
§ 7612-25.] This applies to RCW 49.52.050 through 49.52.080.
Prevailing wages must be paid on public works: RCW 39.12.020.
49.52.060
49.52.060 Authorized withholding. The provisions of
RCW 49.52.050 shall not make it unlawful for an employer
to withhold or divert any portion of an employee's wages
when required or empowered so to do by state or federal law
or when a deduction has been expressly authorized in writing
in advance by the employee for a lawful purpose accruing to
the benefit of such employee nor shall the provisions of RCW
49.52.050 make it unlawful for an employer to withhold
deductions for medical, surgical, or hospital care or service,
pursuant to any rule or regulation: PROVIDED, That the
employer derives no financial benefit from such deduction
and the same is openly, clearly and in due course recorded in
the employer's books. [1939 c 195 § 2; RRS § 7612-22.]
Penalty for coercion as to purchase of goods, meals, etc.: RCW 49.48.020.
Public employment, payroll deductions: RCW 41.04.020, 41.04.030,
41.04.035, and 41.04.036.
Wages to be paid in lawful money or negotiable order, penalty: RCW
49.48.010.
49.52.070
49.52.070 Civil liability for double damages. Any
employer and any officer, vice principal or agent of any
employer who shall violate any of the provisions of subdivisions (1) and (2) of RCW 49.52.050 shall be liable in a civil
action by the aggrieved employee or his assignee to judgment
for twice the amount of the wages unlawfully rebated or withheld by way of exemplary damages, together with costs of
suit and a reasonable sum for attorney's fees: PROVIDED,
HOWEVER, That the benefits of this section shall not be
available to any employee who has knowingly submitted to
such violations. [1939 c 195 § 3; RRS § 7612-23.]
49.52.080
49.52.080 Presumption as to intent. The violations by
an employer or any officer, vice principal, or agent of any
employer of any of the provisions of subdivisions (3), (4),
and (5) of RCW 49.52.050 shall raise a presumption that any
deduction from or underpayment of any employee's wages
connected with such violation was wilful. [1939 c 195 § 4;
RRS § 7612-24.]
49.52.090
49.52.090 Rebates of wages on public works—Penalty. Every person, whether as a representative of an awarding or public body or officer, or as a contractor or subcontractor doing public work, or agent or officer thereof, who takes
or receives, or conspires with another to take or receive, for
his own use or the use of any other person acting with him
any part or portion of the wages paid to any laborer, workman
or mechanic, including a piece worker and working subcontractor, in connection with services rendered upon any public
[Title 49 RCW—page 58]
Chapter 49.56 RCW
WAGES—PRIORITIES—PREFERENCES
Chapter 49.56
Sections
49.56.010
49.56.020
49.56.030
49.56.040
Priority of wages in insolvency.
Preference on death of employer.
Priority in executions, attachments, etc.
Labor claims paramount to claims by state agencies.
Chattel liens: Chapter 60.08 RCW.
Mechanics' and materialmen's liens: Chapter 60.04 RCW.
49.56.010
49.56.010 Priority of wages in insolvency. In all
assignments of property made by any person to trustees or
assignees on account of the inability of the person at the time
of the assignment to pay his debts, or in proceedings in insolvency, the wages of the miners, mechanics, salesmen, servants, clerks or laborers employed by such persons to the
amount of one hundred dollars, each, and for services rendered within sixty days previously, are preferred claims, and
must be paid by such trustees or assignees before any other
creditor or creditors of the assignor. [Code 1881 § 1972;
1877 p 223 § 34; RRS § 1204.]
Construction—1877 p 224: "In construing the provisions of this act,
words used in the masculine gender include the feminine and neuter, the singular number includes the plural and the plural the singular; the word person
includes a corporation as well as a natural person, and the word writing
includes printing." [1877 p 224 § 37.]
Construction—1877 p 224: "This act establishes the law of this territory respecting the subject to which it relates and its provisions and all proceedings under it are to be liberally construed with a view to effect its
object." [1877 p 224 § 39.]
Repeal and saving—1877 p 224: "All acts relating to any kind or class
of liens provided for in this act are hereby repealed, but no action or proceeding commenced before this act takes effect, and no right accrued is affected
by such repeal but the proceedings therein must conform to the requirements
of this act as far as applicable." [1877 p 224 § 38.]
Effective date—1877 p 224: "This act shall take effect and be in force
from and after its passage and the approval thereof by the governor."
(Approved, November 8th, 1877.) [1877 p 224 § 40.]
49.56.020
49.56.020 Preference on death of employer. In case of
the death of any employer, the wages of each miner,
mechanic, salesman, clerk, servant and laborer for services
rendered within sixty days next preceding the death of the
employer, not exceeding one hundred dollars, rank in priority
next after the funeral expenses, expenses of the last sickness,
the charges and expenses of administering upon the estate
and the allowance to the widow and infant children, and must
be paid before other claims against the estate of the deceased
person. [Code 1881 § 1973; 1877 p 223 § 35; RRS § 1205.]
49.56.030
49.56.030 Priority in executions, attachments, etc. In
cases of executions, attachments and writs of similar nature
issued against any person, except for claims for labor done,
(2004 Ed.)
Discrimination—Human Rights Commission
any miners, mechanics, salesmen, servants, clerks and laborers who have claims against the defendant for labor done,
may give notice of their claims and the amount thereof,
sworn to by the person making the claim to the creditor and
the officer executing either of such writs at any time before
the actual sale of property levied on, and unless such claim is
disputed by the debtor or a creditor, such officer must pay to
such person out of the proceeds of the sale, the amount each
is entitled to receive for services rendered within sixty days
next preceding the levy of the writ, not exceeding one hundred dollars. If any or all the claims so presented and claiming preference under this chapter, are disputed by either the
debtor or a creditor, the person presenting the same must
commence an action within ten days from the recovery
thereof, and must prosecute his action with due diligence, or
be forever barred from any claim of priority of payment
thereof; and the officer shall retain possession of so much of
the proceeds of the sale as may be necessary to satisfy such
claim, until the determination of such action; and in case
judgment be had for the claim or any part thereof, carrying
costs, the costs taxable therein shall likewise be a preferred
claim with the same rank as the original claim. [Code 1881 §
1974; 1877 p 223 § 36; RRS § 1206.]
49.56.040 Labor claims paramount to claims by state
agencies. In distraint or insolvency proceedings affecting the
assets of an employer, claims for labor, salaries or wages not
to exceed six hundred dollars to each claimant which have
been earned within three months before the date of the distraint or commencement of the proceeding shall be paramount and superior to any claim preferred or presented by an
agency of the state: PROVIDED, That this section shall not
apply to any compensation payable to an employer or to an
officer, director, or stockholder of a corporate employer.
[1967 ex.s. c 86 § 1.]
49.56.040
Chapter 49.60
Chapter 49.60 RCW
DISCRIMINATION—HUMAN
RIGHTS COMMISSION
Sections
49.60.010
49.60.020
49.60.030
49.60.040
49.60.050
49.60.051
49.60.060
49.60.070
49.60.080
49.60.090
49.60.100
49.60.110
49.60.120
49.60.130
49.60.140
49.60.150
49.60.160
49.60.170
49.60.172
49.60.174
49.60.175
49.60.176
49.60.178
49.60.180
(2004 Ed.)
Purpose of chapter.
Construction of chapter—Election of other remedies.
Freedom from discrimination—Declaration of civil rights.
Definitions.
Commission created.
Board name changed to Washington State Human Rights
Commission.
Membership of commission.
Compensation and reimbursement for travel expenses of commission members.
Official seal.
Offices of commission.
Reports of commission.
Commission to formulate policies.
Certain powers and duties of commission.
May create advisory agencies and conciliation councils.
Commission may hold hearings and subpoena witnesses.
Witnesses compelled to testify.
Refusals may be punished as contempt of court.
Witness fees—Deposition fees.
Unfair practices with respect to HIV or hepatitis C infection.
Evaluation of claim of discrimination—Actual or perceived
HIV or hepatitis C infection.
Unfair practices of financial institutions.
Unfair practices with respect to credit transactions.
Unfair practices with respect to insurance transactions.
Unfair practices of employers.
49.60.190
49.60.200
49.60.205
49.60.210
49.60.215
49.60.220
49.60.222
49.60.223
49.60.2235
49.60.224
49.60.225
49.60.226
49.60.227
49.60.230
49.60.240
49.60.250
49.60.260
49.60.270
49.60.280
49.60.310
49.60.320
49.60.330
49.60.340
49.60.350
49.60.360
49.60.370
49.60.380
49.60.390
49.60.400
49.60.401
49.60.010
Unfair practices of labor unions.
Unfair practices of employment agencies.
Age discrimination—Limitation.
Unfair practices—Discrimination against person opposing
unfair practice—Retaliation against whistleblower.
Unfair practices of places of public resort, accommodation,
assemblage, amusement.
Unfair practice to aid violation.
Unfair practices with respect to real estate transactions, facilities, or services.
Unfair practice to induce sale or rental of real property by representations regarding entry into neighborhood of persons of
particular race, disability, etc.
Unfair practice to coerce, intimidate, threaten, or interfere
regarding secured real estate transaction rights.
Real property contract provisions restricting conveyance,
encumbrance, occupancy, or use to persons of particular
race, disability, etc., void—Unfair practice.
Relief for unfair practice in real estate transaction—Damages—Penalty.
Cooperative agreements between units of government for processing complaints.
Declaratory judgment action to strike discriminatory provision
of real property contract.
Complaint may be filed with commission.
Complaint investigated—Conference, conciliation—Agreement, findings—Rules.
Hearing of complaint by administrative law judge—Limitation of relief—Penalties—Order.
Enforcement of orders of administrative law judge—Appellate
review of court order.
Appeal from orders of administrative law judge.
Court shall expeditiously hear and determine.
Misdemeanor to interfere with or resist commission.
Governor may act on orders against state or political subdivisions.
First class cities of over one hundred twenty-five thousand
population—Administrative remedies authorized—Superior
court jurisdiction.
Election for civil action in lieu of hearing—Relief.
Temporary or preliminary relief—Superior court jurisdiction—Petition of commission.
Refueling services for disabled drivers—Violation—Investigation—Intentional display of plate or placard invalid or not
legally issued prohibited—Fine—Notice to disabled persons.
Liability for killing or injuring dog guide or service animal—
Penalty in addition to other remedies or penalties—Recovery
of attorneys' fees and costs—No duty to investigate.
License waiver for dog guide and service animals.
Rule-making authority—Deadline—1997 c 271.
Discrimination, preferential treatment prohibited.
Short title—1999 c 3.
Annual report on programs to reduce racial disproportionality: RCW
13.06.050.
Application forms—Licenses—Mention of race or religion prohibited—Penalty: RCW 43.01.100.
Denial of civil rights: RCW 9.91.010.
Dog guide or service animal, interfering with: RCW 9.91.170.
Handicapped persons, discrimination in public employment prohibited:
RCW 70.84.080.
Gender equality in higher education: Chapter 28B.110 RCW.
Interschool athletic and other extracurricular activities for students, discrimination prohibited: RCW 28A.600.200.
Malicious harassment because of a person's race, color, religion, ancestry,
or national origin—Criminal penalty—Civil cause of action: RCW
9A.36.080.
Militia, organized, discrimination prohibited: RCW 38.40.110.
Sexual equality: State Constitution Art. 31 §§ 1, 2 (Amendment 61).
Sexual equality mandated for public schools: Chapter 28A.640 RCW.
Unfit buildings, discrimination prohibited: RCW 35.80.040.
49.60.010 Purpose of chapter. This chapter shall be
known as the "law against discrimination". It is an exercise of
the police power of the state for the protection of the public
welfare, health, and peace of the people of this state, and in
49.60.010
[Title 49 RCW—page 59]
49.60.020
Title 49 RCW: Labor Regulations
fulfillment of the provisions of the Constitution of this state
concerning civil rights. The legislature hereby finds and
declares that practices of discrimination against any of its
inhabitants because of race, creed, color, national origin,
families with children, sex, marital status, age, or the presence of any sensory, mental, or physical disability or the use
of a trained dog guide or service animal by a disabled person
are a matter of state concern, that such discrimination threatens not only the rights and proper privileges of its inhabitants
but menaces the institutions and foundation of a free democratic state. A state agency is herein created with powers with
respect to elimination and prevention of discrimination in
employment, in credit and insurance transactions, in places of
public resort, accommodation, or amusement, and in real
property transactions because of race, creed, color, national
origin, families with children, sex, marital status, age, or the
presence of any sensory, mental, or physical disability or the
use of a trained dog guide or service animal by a disabled person; and the commission established hereunder is hereby
given general jurisdiction and power for such purposes.
[1997 c 271 § 1; 1995 c 259 § 1; 1993 c 510 § 1; 1985 c 185
§ 1; 1973 1st ex.s. c 214 § 1; 1973 c 141 § 1; 1969 ex.s. c 167
§ 1; 1957 c 37 § 1; 1949 c 183 § 1; Rem. Supp. 1949 § 761420.]
Effective date—1995 c 259: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1,
1995." [1995 c 259 § 7.]
Severability—1993 c 510: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1993 c 510 § 26.]
Severability—1969 ex.s. c 167: "If any provision of this act, or its
application to any person or circumstance is held invalid, the remainder of
the act, or the application of the provision to other persons or circumstances
is not affected." [1969 ex.s. c 167 § 10.]
Severability—1957 c 37: "If any provision of this act or the application
of such provision to any person or circumstance shall be held invalid, the
remainder of such act or the application of such provision to persons or circumstances other than those to which it is held invalid shall not be affected
thereby." [1957 c 37 § 27.]
Severability—1949 c 183: "If any provision of this act or the application of such provision to any person or circumstance shall be held invalid, the
remainder of such act or the application of such provision to persons or circumstances other than those to which it is held invalid shall not be affected
thereby." [1949 c 183 § 13.]
Community renewal law—Discrimination prohibited: RCW 35.81.170.
49.60.020
49.60.020 Construction of chapter—Election of other
remedies. The provisions of this chapter shall be construed
liberally for the accomplishment of the purposes thereof.
Nothing contained in this chapter shall be deemed to repeal
any of the provisions of any other law of this state relating to
discrimination because of race, color, creed, national origin,
sex, marital status, age, or the presence of any sensory, mental, or physical disability, other than a law which purports to
require or permit doing any act which is an unfair practice
under this chapter. Nor shall anything herein contained be
construed to deny the right to any person to institute any
action or pursue any civil or criminal remedy based upon an
alleged violation of his or her civil rights. [1993 c 510 § 2;
1973 1st ex.s. c 214 § 2; 1973 c 141 § 2; 1957 c 37 § 2; 1949
c 183 § 12; Rem. Supp. 1949 § 7614-30.]
[Title 49 RCW—page 60]
Severability—1993 c 510: See note following RCW 49.60.010.
49.60.030
49.60.030 Freedom from discrimination—Declaration of civil rights. (1) The right to be free from discrimination because of race, creed, color, national origin, sex, or the
presence of any sensory, mental, or physical disability or the
use of a trained dog guide or service animal by a disabled person is recognized as and declared to be a civil right. This right
shall include, but not be limited to:
(a) The right to obtain and hold employment without discrimination;
(b) The right to the full enjoyment of any of the accommodations, advantages, facilities, or privileges of any place
of public resort, accommodation, assemblage, or amusement;
(c) The right to engage in real estate transactions without
discrimination, including discrimination against families
with children;
(d) The right to engage in credit transactions without discrimination;
(e) The right to engage in insurance transactions or transactions with health maintenance organizations without discrimination: PROVIDED, That a practice which is not
unlawful under RCW 48.30.300, 48.44.220, or 48.46.370
does not constitute an unfair practice for the purposes of this
subparagraph; and
(f) The right to engage in commerce free from any discriminatory boycotts or blacklists. Discriminatory boycotts
or blacklists for purposes of this section shall be defined as
the formation or execution of any express or implied agreement, understanding, policy or contractual arrangement for
economic benefit between any persons which is not specifically authorized by the laws of the United States and which is
required or imposed, either directly or indirectly, overtly or
covertly, by a foreign government or foreign person in order
to restrict, condition, prohibit, or interfere with or in order to
exclude any person or persons from any business relationship
on the basis of race, color, creed, religion, sex, the presence
of any sensory, mental, or physical disability, or the use of a
trained dog guide or service animal by a disabled person, or
national origin or lawful business relationship: PROVIDED
HOWEVER, That nothing herein contained shall prohibit the
use of boycotts as authorized by law pertaining to labor disputes and unfair labor practices.
(2) Any person deeming himself or herself injured by
any act in violation of this chapter shall have a civil action in
a court of competent jurisdiction to enjoin further violations,
or to recover the actual damages sustained by the person, or
both, together with the cost of suit including reasonable attorneys' fees or any other appropriate remedy authorized by this
chapter or the United States Civil Rights Act of 1964 as
amended, or the Federal Fair Housing Amendments Act of
1988 (42 U.S.C. Sec. 3601 et seq.).
(3) Except for any unfair practice committed by an
employer against an employee or a prospective employee, or
any unfair practice in a real estate transaction which is the
basis for relief specified in the amendments to RCW
49.60.225 contained in chapter 69, Laws of 1993, any unfair
practice prohibited by this chapter which is committed in the
course of trade or commerce as defined in the Consumer Protection Act, chapter 19.86 RCW, is, for the purpose of applying that chapter, a matter affecting the public interest, is not
(2004 Ed.)
Discrimination—Human Rights Commission
reasonable in relation to the development and preservation of
business, and is an unfair or deceptive act in trade or commerce. [1997 c 271 § 2; 1995 c 135 § 3. Prior: 1993 c 510 §
3; 1993 c 69 § 1; 1984 c 32 § 2; 1979 c 127 § 2; 1977 ex.s. c
192 § 1; 1974 ex.s. c 32 § 1; 1973 1st ex.s. c 214 § 3; 1973 c
141 § 3; 1969 ex.s. c 167 § 2; 1957 c 37 § 3; 1949 c 183 § 2;
Rem. Supp. 1949 § 7614-21.]
Intent—1995 c 135: See note following RCW 29A.08.760.
Severability—1993 c 510: See note following RCW 49.60.010.
Severability—1993 c 69: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1993 c 69 § 17.]
Severability—1969 ex.s. c 167: See note following RCW 49.60.010.
Severability—1957 c 37: See note following RCW 49.60.010.
Severability—1949 c 183: See note following RCW 49.60.010.
49.60.040
49.60.040 Definitions. As used in this chapter:
(1) "Person" includes one or more individuals, partnerships, associations, organizations, corporations, cooperatives, legal representatives, trustees and receivers, or any
group of persons; it includes any owner, lessee, proprietor,
manager, agent, or employee, whether one or more natural
persons; and further includes any political or civil subdivisions of the state and any agency or instrumentality of the
state or of any political or civil subdivision thereof;
(2) "Commission" means the Washington state human
rights commission;
(3) "Employer" includes any person acting in the interest
of an employer, directly or indirectly, who employs eight or
more persons, and does not include any religious or sectarian
organization not organized for private profit;
(4) "Employee" does not include any individual
employed by his or her parents, spouse, or child, or in the
domestic service of any person;
(5) "Labor organization" includes any organization
which exists for the purpose, in whole or in part, of dealing
with employers concerning grievances or terms or conditions
of employment, or for other mutual aid or protection in connection with employment;
(6) "Employment agency" includes any person undertaking with or without compensation to recruit, procure, refer, or
place employees for an employer;
(7) "Marital status" means the legal status of being married, single, separated, divorced, or widowed;
(8) "National origin" includes "ancestry";
(9) "Full enjoyment of" includes the right to purchase
any service, commodity, or article of personal property
offered or sold on, or by, any establishment to the public, and
the admission of any person to accommodations, advantages,
facilities, or privileges of any place of public resort, accommodation, assemblage, or amusement, without acts directly
or indirectly causing persons of any particular race, creed,
color, sex, national origin, or with any sensory, mental, or
physical disability, or the use of a trained dog guide or service
animal by a disabled person, to be treated as not welcome,
accepted, desired, or solicited;
(10) "Any place of public resort, accommodation,
assemblage, or amusement" includes, but is not limited to,
any place, licensed or unlicensed, kept for gain, hire, or
reward, or where charges are made for admission, service,
(2004 Ed.)
49.60.040
occupancy, or use of any property or facilities, whether conducted for the entertainment, housing, or lodging of transient
guests, or for the benefit, use, or accommodation of those
seeking health, recreation, or rest, or for the burial or other
disposition of human remains, or for the sale of goods, merchandise, services, or personal property, or for the rendering
of personal services, or for public conveyance or transportation on land, water, or in the air, including the stations and
terminals thereof and the garaging of vehicles, or where food
or beverages of any kind are sold for consumption on the premises, or where public amusement, entertainment, sports, or
recreation of any kind is offered with or without charge, or
where medical service or care is made available, or where the
public gathers, congregates, or assembles for amusement,
recreation, or public purposes, or public halls, public elevators, and public washrooms of buildings and structures occupied by two or more tenants, or by the owner and one or more
tenants, or any public library or educational institution, or
schools of special instruction, or nursery schools, or day care
centers or children's camps: PROVIDED, That nothing contained in this definition shall be construed to include or apply
to any institute, bona fide club, or place of accommodation,
which is by its nature distinctly private, including fraternal
organizations, though where public use is permitted that use
shall be covered by this chapter; nor shall anything contained
in this definition apply to any educational facility, columbarium, crematory, mausoleum, or cemetery operated or maintained by a bona fide religious or sectarian institution;
(11) "Real property" includes buildings, structures,
dwellings, real estate, lands, tenements, leaseholds, interests
in real estate cooperatives, condominiums, and hereditaments, corporeal and incorporeal, or any interest therein;
(12) "Real estate transaction" includes the sale,
appraisal, brokering, exchange, purchase, rental, or lease of
real property, transacting or applying for a real estate loan, or
the provision of brokerage services;
(13) "Dwelling" means any building, structure, or portion thereof that is occupied as, or designed or intended for
occupancy as, a residence by one or more families, and any
vacant land that is offered for sale or lease for the construction or location thereon of any such building, structure, or
portion thereof;
(14) "Sex" means gender;
(15) "Aggrieved person" means any person who: (a)
Claims to have been injured by an unfair practice in a real
estate transaction; or (b) believes that he or she will be
injured by an unfair practice in a real estate transaction that is
about to occur;
(16) "Complainant" means the person who files a complaint in a real estate transaction;
(17) "Respondent" means any person accused in a complaint or amended complaint of an unfair practice in a real
estate transaction;
(18) "Credit transaction" includes any open or closed end
credit transaction, whether in the nature of a loan, retail
installment transaction, credit card issue or charge, or otherwise, and whether for personal or for business purposes, in
which a service, finance, or interest charge is imposed, or
which provides for repayment in scheduled payments, when
such credit is extended in the regular course of any trade or
commerce, including but not limited to transactions by banks,
[Title 49 RCW—page 61]
49.60.050
Title 49 RCW: Labor Regulations
savings and loan associations or other financial lending institutions of whatever nature, stock brokers, or by a merchant or
mercantile establishment which as part of its ordinary business permits or provides that payment for purchases of property or service therefrom may be deferred;
(19) "Families with children status" means one or more
individuals who have not attained the age of eighteen years
being domiciled with a parent or another person having legal
custody of such individual or individuals, or with the designee of such parent or other person having such legal custody,
with the written permission of such parent or other person.
Families with children status also applies to any person who
is pregnant or is in the process of securing legal custody of
any individual who has not attained the age of eighteen years;
(20) "Covered multifamily dwelling" means: (a) Buildings consisting of four or more dwelling units if such buildings have one or more elevators; and (b) ground floor dwelling units in other buildings consisting of four or more dwelling units;
(21) "Premises" means the interior or exterior spaces,
parts, components, or elements of a building, including individual dwelling units and the public and common use areas of
a building;
(22) "Dog guide" means a dog that is trained for the purpose of guiding blind persons or a dog that is trained for the
purpose of assisting hearing impaired persons;
(23) "Service animal" means an animal that is trained for
the purpose of assisting or accommodating a disabled person's sensory, mental, or physical disability. [1997 c 271 § 3;
1995 c 259 § 2. Prior: 1993 c 510 § 4; 1993 c 69 § 3; prior:
1985 c 203 § 2; 1985 c 185 § 2; 1979 c 127 § 3; 1973 c 141 §
4; 1969 ex.s. c 167 § 3; 1961 c 103 § 1; 1957 c 37 § 4; 1949
c 183 § 3; Rem. Supp. 1949 § 7614-22.]
Effective date—1995 c 259: See note following RCW 49.60.010.
Severability—1993 c 510: See note following RCW 49.60.010.
Severability—1993 c 69: See note following RCW 49.60.030.
Severability—1969 ex.s. c 167: See note following RCW 49.60.010.
Construction—1961 c 103: "Nothing herein shall be construed to render any person or corporation liable for breach of preexisting contracts by
reason of compliance by such person or corporation with this act." [1961 c
103 § 4.]
Severability—1957 c 37: See note following RCW 49.60.010.
Severability—1949 c 183: See note following RCW 49.60.010.
49.60.050
49.60.050 Commission created. There is created the
"Washington state human rights commission," which shall be
composed of five members to be appointed by the governor
with the advice and consent of the senate, one of whom shall
be designated as chairperson by the governor. [1985 c 185 §
3; 1981 c 338 § 9; 1957 c 37 § 5; 1955 c 270 § 2. Prior: 1949
c 183 § 4, part; Rem. Supp. 1949 § 7614-23, part.]
49.60.051
49.60.051 Board name changed to Washington State
Human Rights Commission. From and after August 9,
1971 the "Washington State Board Against Discrimination"
shall be known and designated as the "Washington State
Human Rights Commission". [1971 ex.s. c 52 § 2.]
49.60.060
49.60.060 Membership of commission. One of the
original members of the commission shall be appointed for a
[Title 49 RCW—page 62]
term of one year, one for a term of two years, one for a term
of three years, one for a term of four years, one for a term of
five years, but their successors shall be appointed for terms of
five years each, except that any individual chosen to fill a
vacancy shall be appointed only for the unexpired term of the
member whom the individual succeeds.
A member shall be eligible for reappointment.
A vacancy in the commission shall be filled within thirty
days, the remaining members to exercise all powers of the
commission.
Any member of the commission may be removed by the
governor for inefficiency, neglect of duty, misconduct or
malfeasance in office, after being given a written statement of
the charges and an opportunity to be heard thereon. [1985 c
185 § 4; 1955 c 270 § 3. Prior: 1949 c 183 § 4, part; Rem.
Supp. 1949 § 7614-23, part.]
49.60.070
49.60.070 Compensation and reimbursement for
travel expenses of commission members. Each member of
the commission shall be compensated in accordance with
RCW 43.03.250 and, while in session or on official business,
shall receive reimbursement for travel expenses incurred during such time in accordance with RCW 43.03.050 and
43.03.060. [1985 c 185 § 5; 1984 c 287 § 98; 1975-'76 2nd
ex.s. c 34 § 145; 1955 c 270 § 4. Prior: 1949 c 183 § 4, part;
Rem. Supp. 1949 § 7614-23, part.]
Legislative findings—Severability—Effective date—1984 c 287:
See notes following RCW 43.03.220.
Effective date—Severability—1975-'76 2nd ex.s. c 34: See notes following RCW 2.08.115.
49.60.080
49.60.080 Official seal. The commission shall adopt an
official seal, which shall be judicially noticed. [1985 c 185 §
6; 1955 c 270 § 5. Prior: (i) 1949 c 183 § 4, part; Rem. Supp.
1949 § 7614-23, part. (ii) 1949 c 183 § 6, part; Rem. Supp.
1949 § 7614-25, part.]
49.60.090
49.60.090 Offices of commission. The principal office
of the commission shall be in the city of Olympia, but it may
meet and exercise any or all of its powers at any other place
in the state, and may establish such district offices as it deems
necessary. [1985 c 185 § 7; 1957 c 37 § 6; 1955 c 270 § 6.
Prior: (i) 1949 c 183 § 4, part; Rem. Supp. 1949 § 7614-23,
part. (ii) 1949 c 183 § 6, part; Rem. Supp. 1949 § 7614-25,
part.]
49.60.100
49.60.100 Reports of commission. Subject to RCW
40.07.040, the commission, each biennium, shall report to the
governor, describing the investigations, proceedings, and
hearings it has conducted and their outcome, the decisions it
has rendered, the recommendations it has issued, and the
other work performed by it, and shall make such recommendations for further legislation as may appear desirable. The
commission may present its reports to the legislature; the
commission's reports shall be made available upon request.
[1987 c 505 § 55; 1985 c 185 § 8; 1977 c 75 § 74; 1955 c 270
§ 7. Prior: 1949 c 183 § 4, part; Rem. Supp. 1949 § 7614-23,
part.]
(2004 Ed.)
Discrimination—Human Rights Commission
49.60.110 Commission to formulate policies. The
commission shall formulate policies to effectuate the purposes of this chapter and may make recommendations to
agencies and officers of the state or local subdivisions of government in aid of such policies and purposes. [1985 c 185 §
9; 1949 c 183 § 5; Rem. Supp. 1949 § 7614-24.]
49.60.110
49.60.120
49.60.120 Certain powers and duties of commission.
The commission shall have the functions, powers and duties:
(1) To appoint an executive director and chief examiner,
and such investigators, examiners, clerks, and other employees and agents as it may deem necessary, fix their compensation within the limitations provided by law, and prescribe
their duties.
(2) To obtain upon request and utilize the services of all
governmental departments and agencies.
(3) To adopt, promulgate, amend, and rescind suitable
rules and regulations to carry out the provisions of this chapter, and the policies and practices of the commission in connection therewith.
(4) To receive, impartially investigate, and pass upon
complaints alleging unfair practices as defined in this chapter.
(5) To issue such publications and such results of investigations and research as in its judgment will tend to promote
good will and minimize or eliminate discrimination because
of sex, race, creed, color, national origin, marital status, age,
or the presence of any sensory, mental, or physical disability,
or the use of a trained dog guide or service animal by a disabled person.
(6) To make such technical studies as are appropriate to
effectuate the purposes and policies of this chapter and to
publish and distribute the reports of such studies.
(7) To cooperate and act jointly or by division of labor
with the United States or other states, with other Washington
state agencies, commissions, and other government entities,
and with political subdivisions of the state of Washington and
their respective human rights agencies to carry out the purposes of this chapter. However, the powers which may be
exercised by the commission under this subsection permit
investigations and complaint dispositions only if the investigations are designed to reveal, or the complaint deals only
with, allegations which, if proven, would constitute unfair
practices under this chapter. The commission may perform
such services for these agencies and be reimbursed therefor.
(8) To foster good relations between minority and majority population groups of the state through seminars, conferences, educational programs, and other intergroup relations
activities. [1997 c 271 § 4. Prior: 1993 c 510 § 6; 1993 c 69
§ 4; 1985 c 185 § 10; 1973 1st ex.s. c 214 § 4; 1973 c 141 §
7; 1971 ex.s. c 81 § 1; 1957 c 37 § 7; 1955 c 270 § 8; prior:
1949 c 183 § 6, part; Rem. Supp. 1949 § 7614-25, part.]
49.60.150
advisory agencies and conciliation councils, local, regional,
or statewide, as in its judgment will aid in effectuating the
purposes of this chapter. The commission may empower
them to study the problems of discrimination in all or specific
fields of human relationships or in specific instances of discrimination because of sex, race, creed, color, national origin,
marital status, age, or the presence of any sensory, mental, or
physical disability or the use of a trained dog guide or service
animal by a disabled person; to foster through community
effort or otherwise good will, cooperation, and conciliation
among the groups and elements of the population of the state,
and to make recommendations to the commission for the
development of policies and procedures in general and in
specific instances, and for programs of formal and informal
education which the commission may recommend to the
appropriate state agency.
Such advisory agencies and conciliation councils shall
be composed of representative citizens, serving without pay,
but with reimbursement for travel expenses in accordance
with RCW 43.03.050 and 43.03.060 as now existing or hereafter amended, and the commission may make provision for
technical and clerical assistance to such agencies and councils and for the expenses of such assistance. The commission
may use organizations specifically experienced in dealing
with questions of discrimination. [1997 c 271 § 5; 1993 c 510
§ 7; 1985 c 185 § 11; 1975-'76 2nd ex.s. c 34 § 146; 1973 1st
ex.s. c 214 § 5; 1973 c 141 § 8; 1971 ex.s. c 81 § 2; 1955 c
270 § 9. Prior: 1949 c 183 § 6, part; Rem. Supp. 1949 § 761425, part.]
Severability—1993 c 510: See note following RCW 49.60.010.
Effective date—Severability—1975-'76 2nd ex.s. c 34: See notes following RCW 2.08.115.
Effective date—1971 ex.s. c 81: See note following RCW 49.60.120.
49.60.140
49.60.140 Commission may hold hearings and subpoena witnesses. The commission has power to hold hearings, subpoena witnesses, compel their attendance, administer oaths, take the testimony of any person under oath, and in
connection therewith, to require the production for examination of any books or papers relating to any matter under
investigation or in question before the commission. The commission may make rules as to the issuance of subpoenas by
individual members, as to service of complaints, decisions,
orders, recommendations and other process or papers of the
commission, its member, agent, or agency, either personally
or by registered mail, return receipt requested, or by leaving
a copy thereof at the principal office or place of business of
the person required to be served. The return post office
receipt, when service is by registered mail, shall be proof of
service of the same. [1985 c 185 § 12; 1955 c 270 § 10. Prior:
1949 c 183 § 6, part; Rem. Supp. 1949 § 7614-25, part.]
Severability—1993 c 510: See note following RCW 49.60.010.
49.60.150
Severability—1993 c 69: See note following RCW 49.60.030.
Effective date—1971 ex.s. c 81: "The effective date of this act shall be
July 1, 1971." [1971 ex.s. c 81 § 6.]
Human rights commission to investigate unlawful use of refueling services
for disabled: RCW 49.60.360.
49.60.130
49.60.130 May create advisory agencies and conciliation councils. The commission has power to create such
(2004 Ed.)
49.60.150 Witnesses compelled to testify. No person
shall be excused from attending and testifying or from producing records, correspondence, documents or other evidence in obedience to the subpoena of the commission or of
any individual member, on the ground that the testimony or
evidence required of the person may tend to incriminate or
subject the person to a penalty or forfeiture, but no person
shall be prosecuted or subjected to any penalty or forfeiture
[Title 49 RCW—page 63]
49.60.160
Title 49 RCW: Labor Regulations
for or on account of any transaction, matter or thing concerning which the person is compelled, after having claimed the
privilege against self-incrimination, to testify or produce evidence, except that such person so testifying shall not be
exempt from prosecution and punishment for perjury committed in so testifying. The immunity herein provided shall
extend only to natural persons so compelled to testify. [1985
c 185 § 13; 1955 c 270 § 11. Prior: 1949 c 183 § 6, part; Rem.
Supp. 1949 § 7614-25, part.]
49.60.160
49.60.160 Refusals may be punished as contempt of
court. In case of contumacy or refusal to obey a subpoena
issued to any person, the superior court of any county within
the jurisdiction of which the investigation, proceeding, or
hearing is carried on or within the jurisdiction of which the
person guilty of contumacy or refusal to obey is found or
resides or transacts business, upon application by the commission shall have jurisdiction to issue to such person an
order requiring such person to appear before the commission,
its member, agent, or agency, there to produce evidence if so
ordered, or there to give testimony touching the matter under
investigation or in question. Any failure to obey such order of
the court may be punished by the court as a contempt thereof.
[1985 c 185 § 14; 1955 c 270 § 12. Prior: 1949 c 183 § 6,
part; Rem. Supp. 1949 § 7614-25, part.]
49.60.170
49.60.170 Witness fees—Deposition fees. Witnesses
before the commission, its member, agent, or agency, shall be
paid the same fees and mileage that are paid witnesses in the
courts of this state. Witnesses whose depositions are taken
and the person taking the same shall be entitled to same fees
as are paid for like services in the courts of the state. [1985 c
185 § 15; 1955 c 270 § 13. Prior: 1949 c 183 § 6, part; Rem.
Supp. 1949 § 7614-25, part.]
Courts of record—Witnesses: Chapter 2.40 RCW.
Discovery and depositions: Title 5 RCW; see also Rules of Court, CR 26
through 37.
hepatitis C infection to other persons, and there exists no
means of eliminating the risk by restructuring the job.
(4) For the purpose of this chapter, any person who is
actually infected with HIV or hepatitis C, but is not disabled
as a result of the infection, shall not be eligible for any benefits under the affirmative action provisions of chapter 49.74
RCW solely on the basis of such infection.
(5) Employers are immune from civil action for damages
arising out of transmission of HIV or hepatitis C to employees or to members of the public unless such transmission
occurs as a result of the employer's gross negligence. [2003
c 273 § 2; 1988 c 206 § 903.]
Severability—1988 c 206: See RCW 70.24.900.
49.60.174
49.60.174 Evaluation of claim of discrimination—
Actual or perceived HIV or hepatitis C infection. (1) For
the purposes of determining whether an unfair practice under
this chapter has occurred, claims of discrimination based on
actual or perceived HIV or hepatitis C infection shall be evaluated in the same manner as other claims of discrimination
based on sensory, mental, or physical disability; or the use of
a trained dog guide or service animal by a disabled person.
(2) Subsection (1) of this section shall not apply to transactions with insurance entities, health service contractors, or
health maintenance organizations subject to RCW
49.60.030(1)(e) or 49.60.178 to prohibit fair discrimination
on the basis of actual HIV or actual hepatitis C infection status when bona fide statistical differences in risk or exposure
have been substantiated.
(3) For the purposes of this chapter:
(a) "HIV" means the human immunodeficiency virus,
and includes all HIV and HIV-related viruses which damage
the cellular branch of the human immune system and leave
the infected person immunodeficient; and
(b) "Hepatitis C" means the hepatitis C virus of any genotype. [2003 c 273 § 3; 1997 c 271 § 6; 1993 c 510 § 8; 1988
c 206 § 902.]
Severability—1993 c 510: See note following RCW 49.60.010.
Severability—1988 c 206: See RCW 70.24.900.
49.60.172
49.60.172 Unfair practices with respect to HIV or
hepatitis C infection. (1) No person may require an individual to take an HIV test, as defined in chapter 70.24 RCW, or
hepatitis C test, as a condition of hiring, promotion, or continued employment unless the absence of HIV or hepatitis C
infection is a bona fide occupational qualification for the job
in question.
(2) No person may discharge or fail or refuse to hire any
individual, or segregate or classify any individual in any way
which would deprive or tend to deprive that individual of
employment opportunities or adversely affect his or her status as an employee, or otherwise discriminate against any
individual with respect to compensation, terms, conditions,
or privileges of employment on the basis of the results of an
HIV test or hepatitis C test unless the absence of HIV or hepatitis C infection is a bona fide occupational qualification of
the job in question.
(3) The absence of HIV or hepatitis C infection as a bona
fide occupational qualification exists when performance of a
particular job can be shown to present a significant risk, as
defined by the board of health by rule, of transmitting HIV or
[Title 49 RCW—page 64]
49.60.175
49.60.175 Unfair practices of financial institutions. It
shall be an unfair practice to use the sex, race, creed, color,
national origin, marital status, or the presence of any sensory,
mental, or physical disability of any person, or the use of a
trained dog guide or service animal by a disabled person,
concerning an application for credit in any credit transaction
to determine the credit worthiness of an applicant. [1997 c
271 § 7; 1993 c 510 § 9; 1979 c 127 § 4; 1977 ex.s. c 301 §
14; 1973 c 141 § 9; 1959 c 68 § 1.]
Severability—1993 c 510: See note following RCW 49.60.010.
Fairness in lending act: RCW 30.04.500 through 30.04.515.
49.60.176
49.60.176 Unfair practices with respect to credit
transactions. (1) It is an unfair practice for any person
whether acting for himself, herself, or another in connection
with any credit transaction because of race, creed, color,
national origin, sex, marital status, or the presence of any sensory, mental, or physical disability or the use of a trained dog
guide or service animal by a disabled person:
(a) To deny credit to any person;
(2004 Ed.)
Discrimination—Human Rights Commission
(b) To increase the charges or fees for or collateral
required to secure any credit extended to any person;
(c) To restrict the amount or use of credit extended or to
impose different terms or conditions with respect to the credit
extended to any person or any item or service related thereto;
(d) To attempt to do any of the unfair practices defined in
this section.
(2) Nothing in this section shall prohibit any party to a
credit transaction from considering the credit history of any
individual applicant.
(3) Further, nothing in this section shall prohibit any
party to a credit transaction from considering the application
of the community property law to the individual case or from
taking reasonable action thereon. [1997 c 271 § 8; 1993 c
510 § 10; 1979 c 127 § 5; 1973 c 141 § 5.]
Severability—1993 c 510: See note following RCW 49.60.010.
49.60.178
49.60.178 Unfair practices with respect to insurance
transactions. It is an unfair practice for any person whether
acting for himself, herself, or another in connection with an
insurance transaction or transaction with a health maintenance organization to cancel or fail or refuse to issue or
renew insurance or a health maintenance agreement to any
person because of sex, marital status, race, creed, color,
national origin, or the presence of any sensory, mental, or
physical disability or the use of a trained dog guide or service
animal by a disabled person: PROVIDED, That a practice
which is not unlawful under RCW 48.30.300, 48.44.220, or
48.46.370 does not constitute an unfair practice for the purposes of this section. For the purposes of this section, "insurance transaction" is defined in RCW 48.01.060, health maintenance agreement is defined in RCW 48.46.020, and "health
maintenance organization" is defined in RCW 48.46.020.
The fact that such unfair practice may also be a violation
of chapter 48.30, 48.44, or 48.46 RCW does not constitute a
defense to an action brought under this section.
The insurance commissioner, under RCW 48.30.300,
and the human rights commission, under chapter 49.60 RCW,
shall have concurrent jurisdiction under this section and shall
enter into a working agreement as to procedure to be followed in complaints under this section. [1997 c 271 § 9;
1993 c 510 § 11; 1984 c 32 § 1; 1979 c 127 § 6; 1974 ex.s. c
32 § 2; 1973 c 141 § 6.]
Severability—1993 c 510: See note following RCW 49.60.010.
49.60.180
49.60.180 Unfair practices of employers. It is an
unfair practice for any employer:
(1) To refuse to hire any person because of age, sex, marital status, race, creed, color, national origin, or the presence
of any sensory, mental, or physical disability or the use of a
trained dog guide or service animal by a disabled person,
unless based upon a bona fide occupational qualification:
PROVIDED, That the prohibition against discrimination
because of such disability shall not apply if the particular disability prevents the proper performance of the particular
worker involved.
(2) To discharge or bar any person from employment
because of age, sex, marital status, race, creed, color, national
origin, or the presence of any sensory, mental, or physical
(2004 Ed.)
49.60.190
disability or the use of a trained dog guide or service animal
by a disabled person.
(3) To discriminate against any person in compensation
or in other terms or conditions of employment because of
age, sex, marital status, race, creed, color, national origin, or
the presence of any sensory, mental, or physical disability or
the use of a trained dog guide or service animal by a disabled
person: PROVIDED, That it shall not be an unfair practice
for an employer to segregate washrooms or locker facilities
on the basis of sex, or to base other terms and conditions of
employment on the sex of employees where the commission
by regulation or ruling in a particular instance has found the
employment practice to be appropriate for the practical realization of equality of opportunity between the sexes.
(4) To print, or circulate, or cause to be printed or circulated any statement, advertisement, or publication, or to use
any form of application for employment, or to make any
inquiry in connection with prospective employment, which
expresses any limitation, specification, or discrimination as
to age, sex, marital status, race, creed, color, national origin,
or the presence of any sensory, mental, or physical disability
or the use of a trained dog guide or service animal by a disabled person, or any intent to make any such limitation, specification, or discrimination, unless based upon a bona fide
occupational qualification: PROVIDED, Nothing contained
herein shall prohibit advertising in a foreign language. [1997
c 271 § 10; 1993 c 510 § 12; 1985 c 185 § 16; 1973 1st ex.s.
c 214 § 6; 1973 c 141 § 10; 1971 ex.s. c 81 § 3; 1961 c 100 §
1; 1957 c 37 § 9. Prior: 1949 c 183 § 7, part; Rem. Supp.
1949 § 7614-26, part.]
Severability—1993 c 510: See note following RCW 49.60.010.
Effective date—1971 ex.s. c 81: See note following RCW 49.60.120.
Element of age not to affect apprenticeship agreements: RCW 49.04.910.
Employment rights of persons serving in uniformed services: RCW
73.16.032.
Labor—Prohibited practices: Chapter 49.44 RCW.
Unfair practices in employment because of age of employee or applicant:
RCW 49.44.090.
49.60.190
49.60.190 Unfair practices of labor unions. It is an
unfair practice for any labor union or labor organization:
(1) To deny membership and full membership rights and
privileges to any person because of age, sex, marital status,
race, creed, color, national origin, or the presence of any sensory, mental, or physical disability or the use of a trained dog
guide or service animal by a disabled person.
(2) To expel from membership any person because of
age, sex, marital status, race, creed, color, national origin, or
the presence of any sensory, mental, or physical disability or
the use of a trained dog guide or service animal by a disabled
person.
(3) To discriminate against any member, employer,
employee, or other person to whom a duty of representation
is owed because of age, sex, marital status, race, creed, color,
national origin, or the presence of any sensory, mental, or
physical disability or the use of a trained dog guide or service
animal by a disabled person. [1997 c 271 § 11; 1993 c 510 §
13; 1985 c 185 § 17; 1973 1st ex.s. c 214 § 8; 1973 c 141 §
11; 1971 ex.s. c 81 § 4; 1961 c 100 § 2; 1957 c 37 § 10. Prior:
1949 c 183 § 7, part; Rem. Supp. 1949 § 7614-26, part.]
[Title 49 RCW—page 65]
49.60.200
Title 49 RCW: Labor Regulations
Severability—1993 c 510: See note following RCW 49.60.010.
Effective date—1971 ex.s. c 81: See note following RCW 49.60.120.
Element of age not to affect apprenticeship agreements: RCW 49.04.910.
49.60.200
49.60.200 Unfair practices of employment agencies.
It is an unfair practice for any employment agency to fail or
refuse to classify properly or refer for employment, or otherwise to discriminate against, an individual because of age,
sex, marital status, race, creed, color, national origin, or the
presence of any sensory, mental, or physical disability or the
use of a trained dog guide or service animal by a disabled person, or to print or circulate, or cause to be printed or circulated any statement, advertisement, or publication, or to use
any form of application for employment, or to make any
inquiry in connection with prospective employment, which
expresses any limitation, specification or discrimination as to
age, sex, race, creed, color, or national origin, or the presence
of any sensory, mental, or physical disability or the use of a
trained dog guide or service animal by a disabled person, or
any intent to make any such limitation, specification, or discrimination, unless based upon a bona fide occupational qualification: PROVIDED, Nothing contained herein shall prohibit advertising in a foreign language. [1997 c 271 § 12;
1993 c 510 § 14; 1973 1st ex.s. c 214 § 9; 1973 c 141 § 12;
1971 ex.s. c 81 § 5; 1961 c 100 § 3; 1957 c 37 § 11. Prior:
1949 c 183 § 7, part; Rem. Supp. 1949 § 7614-26, part.]
from any person the admission, patronage, custom, presence,
frequenting, dwelling, staying, or lodging in any place of
public resort, accommodation, assemblage, or amusement,
except for conditions and limitations established by law and
applicable to all persons, regardless of race, creed, color,
national origin, sex, the presence of any sensory, mental, or
physical disability, or the use of a trained dog guide or service
animal by a disabled person: PROVIDED, That this section
shall not be construed to require structural changes, modifications, or additions to make any place accessible to a disabled
person except as otherwise required by law: PROVIDED,
That behavior or actions constituting a risk to property or
other persons can be grounds for refusal and shall not constitute an unfair practice. [1997 c 271 § 13; 1993 c 510 § 16.
Prior: 1985 c 203 § 1; 1985 c 90 § 6; 1979 c 127 § 7; 1957 c
37 § 14.]
Severability—1993 c 510: See note following RCW 49.60.010.
Denial of civil rights: RCW 9.91.010.
49.60.220
49.60.220 Unfair practice to aid violation. It is an
unfair practice for any person to aid, abet, encourage, or
incite the commission of any unfair practice, or to attempt to
obstruct or prevent any other person from complying with the
provisions of this chapter or any order issued thereunder.
[1957 c 37 § 13. Prior: 1949 c 183 § 7, part; Rem. Supp. 1949
§ 7614-26, part.]
Severability—1993 c 510: See note following RCW 49.60.010.
Effective date—1971 ex.s. c 81: See note following RCW 49.60.120.
Element of age not to affect apprenticeship agreements: RCW 49.04.910.
Fraud by employment agent: RCW 49.44.050.
49.60.205
49.60.205 Age discrimination—Limitation. No person shall be considered to have committed an unfair practice
on the basis of age discrimination unless the practice violates
RCW 49.44.090. It is a defense to any complaint of an unfair
practice of age discrimination that the practice does not violate RCW 49.44.090. [1993 c 510 § 15; 1985 c 185 § 28.]
Severability—1993 c 510: See note following RCW 49.60.010.
49.60.210
49.60.210 Unfair practices—Discrimination against
person opposing unfair practice—Retaliation against
whistleblower. (1) It is an unfair practice for any employer,
employment agency, labor union, or other person to discharge, expel, or otherwise discriminate against any person
because he or she has opposed any practices forbidden by this
chapter, or because he or she has filed a charge, testified, or
assisted in any proceeding under this chapter.
(2) It is an unfair practice for a government agency or
government manager or supervisor to retaliate against a
whistleblower as defined in chapter 42.40 RCW. [1992 c 118
§ 4; 1985 c 185 § 18; 1957 c 37 § 12. Prior: 1949 c 183 § 7,
part; Rem. Supp. 1949 § 7614-26, part.]
49.60.215
49.60.215 Unfair practices of places of public resort,
accommodation, assemblage, amusement. It shall be an
unfair practice for any person or the person's agent or
employee to commit an act which directly or indirectly
results in any distinction, restriction, or discrimination, or the
requiring of any person to pay a larger sum than the uniform
rates charged other persons, or the refusing or withholding
[Title 49 RCW—page 66]
49.60.222
49.60.222 Unfair practices with respect to real estate
transactions, facilities, or services. (1) It is an unfair practice for any person, whether acting for himself, herself, or
another, because of sex, marital status, race, creed, color,
national origin, families with children status, the presence of
any sensory, mental, or physical disability, or the use of a
trained dog guide or service animal by a disabled person:
(a) To refuse to engage in a real estate transaction with a
person;
(b) To discriminate against a person in the terms, conditions, or privileges of a real estate transaction or in the furnishing of facilities or services in connection therewith;
(c) To refuse to receive or to fail to transmit a bona fide
offer to engage in a real estate transaction from a person;
(d) To refuse to negotiate for a real estate transaction
with a person;
(e) To represent to a person that real property is not
available for inspection, sale, rental, or lease when in fact it is
so available, or to fail to bring a property listing to his or her
attention, or to refuse to permit the person to inspect real
property;
(f) To discriminate in the sale or rental, or to otherwise
make unavailable or deny a dwelling, to any person; or to a
person residing in or intending to reside in that dwelling after
it is sold, rented, or made available; or to any person associated with the person buying or renting;
(g) To make, print, circulate, post, or mail, or cause to be
so made or published a statement, advertisement, or sign, or
to use a form of application for a real estate transaction, or to
make a record or inquiry in connection with a prospective
real estate transaction, which indicates, directly or indirectly,
an intent to make a limitation, specification, or discrimination
with respect thereto;
(2004 Ed.)
Discrimination—Human Rights Commission
(h) To offer, solicit, accept, use, or retain a listing of real
property with the understanding that a person may be discriminated against in a real estate transaction or in the furnishing of facilities or services in connection therewith;
(i) To expel a person from occupancy of real property;
(j) To discriminate in the course of negotiating, executing, or financing a real estate transaction whether by mortgage, deed of trust, contract, or other instrument imposing a
lien or other security in real property, or in negotiating or executing any item or service related thereto including issuance
of title insurance, mortgage insurance, loan guarantee, or
other aspect of the transaction. Nothing in this section shall
limit the effect of RCW 49.60.176 relating to unfair practices
in credit transactions; or
(k) To attempt to do any of the unfair practices defined in
this section.
(2) For the purposes of this chapter discrimination based
on the presence of any sensory, mental, or physical disability
or the use of a trained dog guide or service animal by a blind,
deaf, or physically disabled person includes:
(a) A refusal to permit, at the expense of the disabled
person, reasonable modifications of existing premises occupied or to be occupied by such person if such modifications
may be necessary to afford such person full enjoyment of the
dwelling, except that, in the case of a rental, the landlord
may, where it is reasonable to do so, condition permission for
a modification on the renter agreeing to restore the interior of
the dwelling to the condition that existed before the modification, reasonable wear and tear excepted;
(b) To refuse to make reasonable accommodation in
rules, policies, practices, or services when such accommodations may be necessary to afford a person with the presence
of any sensory, mental, or physical disability and/or the use
of a trained dog guide or service animal by a blind, deaf, or
physically disabled person equal opportunity to use and enjoy
a dwelling; or
(c) To fail to design and construct covered multifamily
dwellings and premises in conformance with the federal fair
housing amendments act of 1988 (42 U.S.C. Sec. 3601 et
seq.) and all other applicable laws or regulations pertaining to
access by persons with any sensory, mental, or physical disability or use of a trained dog guide or service animal. Whenever the requirements of applicable laws or regulations differ,
the requirements which require greater accessibility for persons with any sensory, mental, or physical disability shall
govern.
Nothing in (a) or (b) of this subsection shall apply to: (i)
A single-family house rented or leased by the owner if the
owner does not own or have an interest in the proceeds of the
rental or lease of more than three such single-family houses at
one time, the rental or lease occurred without the use of a real
estate broker or salesperson, as defined in RCW 18.85.010,
and the rental or lease occurred without the publication, posting, or mailing of any advertisement, sign, or statement in
violation of subsection (1)(g) of this section; or (ii) rooms or
units in dwellings containing living quarters occupied or
intended to be occupied by no more than four families living
independently of each other if the owner maintains and occupies one of the rooms or units as his or her residence.
(3) Notwithstanding any other provision of this chapter,
it shall not be an unfair practice or a denial of civil rights for
(2004 Ed.)
49.60.223
any public or private educational institution to separate the
sexes or give preference to or limit use of dormitories, residence halls, or other student housing to persons of one sex or
to make distinctions on the basis of marital or families with
children status.
(4) Except pursuant to subsection (2)(a) of this section,
this section shall not be construed to require structural
changes, modifications, or additions to make facilities accessible to a disabled person except as otherwise required by
law. Nothing in this section affects the rights, responsibilities,
and remedies of landlords and tenants pursuant to chapter
59.18 or 59.20 RCW, including the right to post and enforce
reasonable rules of conduct and safety for all tenants and their
guests, provided that chapters 59.18 and 59.20 RCW are only
affected to the extent they are inconsistent with the nondiscrimination requirements of this chapter. Nothing in this section limits the applicability of any reasonable federal, state,
or local restrictions regarding the maximum number of occupants permitted to occupy a dwelling.
(5) Notwithstanding any other provision of this chapter,
it shall not be an unfair practice for any public establishment
providing for accommodations offered for the full enjoyment
of transient guests as defined by RCW 9.91.010(1)(c) to
make distinctions on the basis of families with children status. Nothing in this section shall limit the effect of RCW
49.60.215 relating to unfair practices in places of public
accommodation.
(6) Nothing in this chapter prohibiting discrimination
based on families with children status applies to housing for
older persons as defined by the federal fair housing amendments act of 1988, 42 U.S.C. Sec. 3607(b)(1) through (3), as
amended by the housing for older persons act of 1995, P.L.
104-76, as enacted on December 28, 1995. Nothing in this
chapter authorizes requirements for housing for older persons
different than the requirements in the federal fair housing
amendments act of 1988, 42 U.S.C. Sec. 3607(b)(1) through
(3), as amended by the housing for older persons act of 1995,
P.L. 104-76, as enacted on December 28, 1995. [1997 c 400
§ 3; 1997 c 271 § 14; 1995 c 259 § 3. Prior: 1993 c 510 § 17;
1993 c 69 § 5; 1989 c 61 § 1; 1979 c 127 § 8; 1975 1st ex.s. c
145 § 1; 1973 c 141 § 13; 1969 ex.s. c 167 § 4.]
Reviser's note: This section was amended by 1997 c 271 § 14 and by
1997 c 400 § 3, each without reference to the other. Both amendments are
incorporated in the publication of this section under RCW 1.12.025(2). For
rule of construction, see RCW 1.12.025(1).
Effective date—1995 c 259: See note following RCW 49.60.010.
Severability—1993 c 510: See note following RCW 49.60.010.
Severability—1993 c 69: See note following RCW 49.60.030.
Severability—1969 ex.s. c 167: See note following RCW 49.60.010.
49.60.223
49.60.223 Unfair practice to induce sale or rental of
real property by representations regarding entry into
neighborhood of persons of particular race, disability,
etc. It is an unfair practice for any person, for profit, to
induce or attempt to induce any person to sell or rent any real
property by representations regarding the entry or prospective entry into the neighborhood of a person or persons of a
particular race, creed, color, sex, national origin, families
with children status, or with any sensory, mental, or physical
disability and/or the use of a trained dog guide or service animal by a blind, deaf, or physically disabled person. [1997 c
[Title 49 RCW—page 67]
49.60.2235
Title 49 RCW: Labor Regulations
271 § 15. Prior: 1993 c 510 § 18; 1993 c 69 § 6; 1979 c 127
§ 9; 1969 ex.s. c 167 § 5.]
Severability—1993 c 510: See note following RCW 49.60.010.
Severability—1993 c 69: See note following RCW 49.60.030.
Severability—1969 ex.s. c 167: See note following RCW 49.60.010.
49.60.2235
49.60.2235 Unfair practice to coerce, intimidate,
threaten, or interfere regarding secured real estate transaction rights. It is an unlawful practice to coerce, intimidate,
threaten, or interfere with any person in the exercise or enjoyment of, or on account of his or her having exercised or
enjoyed, or on account of his or her having aided or encouraged any other person in the exercise or enjoyment of, rights
regarding real estate transactions secured by RCW
49.60.030, 49.60.040, and 49.60.222 through 49.60.224.
[1993 c 69 § 7.]
Severability—1993 c 69: See note following RCW 49.60.030.
49.60.224
49.60.224 Real property contract provisions restricting conveyance, encumbrance, occupancy, or use to persons of particular race, disability, etc., void—Unfair practice. (1) Every provision in a written instrument relating to
real property which purports to forbid or restrict the conveyance, encumbrance, occupancy, or lease thereof to individuals of a specified race, creed, color, sex, national origin, families with children status, or with any sensory, mental, or
physical disability or the use of a trained dog guide or service
animal by a blind, deaf, or physically disabled person, and
every condition, restriction, or prohibition, including a right
of entry or possibility of reverter, which directly or indirectly
limits the use or occupancy of real property on the basis of
race, creed, color, sex, national origin, families with children
status, or the presence of any sensory, mental, or physical disability or the use of a trained dog guide or service animal by
a blind, deaf, or physically disabled person is void.
(2) It is an unfair practice to insert in a written instrument
relating to real property a provision that is void under this
section or to honor or attempt to honor such a provision in the
chain of title. [1997 c 271 § 16; 1993 c 69 § 8; 1979 c 127 §
10; 1969 ex.s. c 167 § 6.]
(b) In an amount up to twenty-five thousand dollars if the
respondent has been determined to have committed one other
unfair practice in a real estate transaction during the five-year
period ending on the date of the filing of this charge; or
(c) In an amount up to fifty thousand dollars if the
respondent has been determined to have committed two or
more unfair practices in a real estate transaction during the
seven-year period ending on the date of the filing of this
charge, for loss of the right secured by RCW 49.60.010,
49.60.030, 49.60.040, and 49.60.222 through 49.60.224, as
now or hereafter amended, to be free from discrimination in
real property transactions because of sex, marital status, race,
creed, color, national origin, families with children status, or
the presence of any sensory, mental, or physical disability or
the use of a trained dog guide or service animal by a blind,
deaf, or physically disabled person. Enforcement of the order
and appeal therefrom by the complainant or respondent may
be made as provided in RCW 49.60.260 and 49.60.270. If
acts constituting the unfair practice in a real estate transaction
that is the object of the charge are determined to have been
committed by the same natural person who has been previously determined to have committed acts constituting an
unfair practice in a real estate transaction, then the civil penalty of up to fifty thousand dollars may be imposed without
regard to the period of time within which any subsequent
unfair practice in a real estate transaction occurred. All civil
penalties assessed under this section shall be paid into the
state treasury and credited to the general fund.
(2) Such order shall not affect any contract, sale, conveyance, encumbrance, or lease consummated before the issuance of an order that involves a bona fide purchaser, encumbrancer, or tenant who does not have actual notice of the
charge filed under this chapter.
(3) Notwithstanding any other provision of this chapter,
persons awarded damages under this section may not receive
additional damages pursuant to RCW 49.60.250. [1997 c 271
§ 17; 1995 c 259 § 4. Prior: 1993 c 510 § 20; 1993 c 69 § 9;
1985 c 185 § 19; 1979 c 127 § 11; 1973 c 141 § 14; 1969 ex.s.
c 167 § 7.]
Effective date—1995 c 259: See note following RCW 49.60.010.
Severability—1993 c 510: See note following RCW 49.60.010.
Severability—1993 c 69: See note following RCW 49.60.030.
Severability—1993 c 69: See note following RCW 49.60.030.
Severability—1969 ex.s. c 167: See note following RCW 49.60.010.
Severability—1969 ex.s. c 167: See note following RCW 49.60.010.
49.60.225
49.60.225 Relief for unfair practice in real estate
transaction—Damages—Penalty. (1) When a reasonable
cause determination has been made under RCW 49.60.240
that an unfair practice in a real estate transaction has been
committed and a finding has been made that the respondent
has engaged in any unfair practice under RCW 49.60.250, the
administrative law judge shall promptly issue an order for
such relief suffered by the aggrieved person as may be appropriate, which may include actual damages as provided by the
federal fair housing amendments act of 1988 (42 U.S.C. Sec.
3601 et seq.), and injunctive or other equitable relief. Such
order may, to further the public interest, assess a civil penalty
against the respondent:
(a) In an amount up to ten thousand dollars if the respondent has not been determined to have committed any prior
unfair practice in a real estate transaction;
[Title 49 RCW—page 68]
49.60.226
49.60.226 Cooperative agreements between units of
government for processing complaints. The commission
and units of local government administering ordinances with
provisions similar to the real estate provisions of the law
against discrimination are authorized and directed to enter
into cooperative agreements or arrangements for receiving
and processing complaints so that duplication of functions
shall be minimized and multiple hearings avoided. No complainant may secure relief from more than one instrumentality of state, or local government, nor shall any relief be
granted by any state or local instrumentality if relief has been
granted or proceedings are continuing in any federal agency,
court, or instrumentality, unless such proceedings have been
deferred pending state action. [1985 c 185 § 20; 1969 ex.s. c
167 § 8.]
Severability—1969 ex.s. c 167: See note following RCW 49.60.010.
(2004 Ed.)
Discrimination—Human Rights Commission
49.60.227
49.60.227 Declaratory judgment action to strike discriminatory provision of real property contract. If a written instrument contains a provision that is void by reason of
RCW 49.60.224, the owner, occupant, or tenant of the property which is subject to the provision may cause the provision
to be stricken from the public records by bringing an action in
the superior court in the county in which the property is
located. The action shall be an in rem, declaratory judgment
action whose title shall be the description of the property. The
necessary party to the action shall be the owner, occupant, or
tenant of the property or any portion thereof. The person
bringing the action shall pay a fee set under RCW 36.18.012.
If the court finds that any provisions of the written
instrument are void under RCW 49.60.224, it shall enter an
order striking the void provisions from the public records and
eliminating the void provisions from the title or lease of the
property described in the complaint. [1995 c 292 § 18; 1993
c 69 § 10; 1987 c 56 § 2.]
Severability—1993 c 69: See note following RCW 49.60.030.
Intent—1987 c 56 § 2: "The legislature finds that some real property
deeds and other written instruments contain discriminatory covenants and
restrictions that are contrary to public policy and are void. The continued
existence of these covenants and restrictions is repugnant to many property
owners and diminishes the free enjoyment of their property. It is the intent of
RCW 49.60.227 to allow property owners to remove all remnants of discrimination from their deeds." [1987 c 56 § 1.]
49.60.230
49.60.230 Complaint may be filed with commission.
(1) Who may file a complaint:
(a) Any person claiming to be aggrieved by an alleged
unfair practice may, personally or by his or her attorney,
make, sign, and file with the commission a complaint in writing under oath or by declaration. The complaint shall state the
name of the person alleged to have committed the unfair
practice and the particulars thereof, and contain such other
information as may be required by the commission.
(b) Whenever it has reason to believe that any person has
been engaged or is engaging in an unfair practice, the commission may issue a complaint.
(c) Any employer or principal whose employees, or
agents, or any of them, refuse or threaten to refuse to comply
with the provisions of this chapter may file with the commission a written complaint under oath or by declaration asking
for assistance by conciliation or other remedial action.
(2) Any complaint filed pursuant to this section must be
so filed within six months after the alleged act of discrimination except that complaints alleging an unfair practice in a
real estate transaction pursuant to RCW 49.60.222 through
49.60.225 must be so filed within one year after the alleged
unfair practice in a real estate transaction has occurred or terminated. [1993 c 510 § 21; 1993 c 69 § 11; 1985 c 185 § 21;
1957 c 37 § 16; 1955 c 270 § 15. Prior: 1949 c 183 § 8, part;
Rem. Supp. 1949 § 7614-27, part.]
Reviser's note: This section was amended by 1993 c 69 § 11 and by
1993 c 510 § 21, each without reference to the other. Both amendments are
incorporated in the publication of this section pursuant to RCW 1.12.025(2).
For rule of construction, see RCW 1.12.025(1).
Severability—1993 c 510: See note following RCW 49.60.010.
49.60.250
any complaint, the chairperson of the commission shall refer
it to the appropriate section of the commission's staff for
prompt investigation and ascertainment of the facts alleged in
the complaint. The investigation shall be limited to the
alleged facts contained in the complaint. The results of the
investigation shall be reduced to written findings of fact, and
a finding shall be made that there is or that there is not reasonable cause for believing that an unfair practice has been or is
being committed. A copy of said findings shall be provided to
the complainant and to the person named in such complaint,
hereinafter referred to as the respondent.
If the finding is made that there is reasonable cause for
believing that an unfair practice has been or is being committed, the commission's staff shall immediately endeavor to
eliminate the unfair practice by conference, conciliation, and
persuasion.
If an agreement is reached for the elimination of such
unfair practice as a result of such conference, conciliation,
and persuasion, the agreement shall be reduced to writing and
signed by the respondent, and an order shall be entered by the
commission setting forth the terms of said agreement. No
order shall be entered by the commission at this stage of the
proceedings except upon such written agreement, except that
during the period beginning with the filing of complaints
alleging an unfair practice with respect to real estate transactions pursuant to RCW 49.60.222 through 49.60.225, and
ending with the filing of a finding of reasonable cause or a
dismissal by the commission, the commission staff shall, to
the extent feasible, engage in conciliation with respect to
such complaint. Any conciliation agreement arising out of
conciliation efforts by the commission shall be an agreement
between the respondent and the complainant and shall be
subject to the approval of the commission. Each conciliation
agreement shall be made public unless the complainant and
respondent otherwise agree and the commission determines
that disclosure is not required to further the purposes of this
chapter.
If no such agreement can be reached, a finding to that
effect shall be made and reduced to writing, with a copy
thereof provided to the complainant and the respondent.
The commission may adopt rules, including procedural
time requirements, for processing complaints alleging an
unfair practice with respect to real estate transactions pursuant to RCW 49.60.222 through 49.60.225 and which may be
consistent with the federal fair housing amendments act of
1988 (42 U.S.C. Sec. 3601 et seq.), but which in no case shall
exceed or be more restrictive than the requirements or standards of such act. [1995 c 259 § 5. Prior: 1993 c 510 § 22;
1993 c 69 § 12; 1985 c 185 § 22; 1981 c 259 § 1; 1957 c 37 §
17; 1955 c 270 § 16; prior: 1949 c 183 § 8, part; Rem. Supp.
1949 § 7614-27, part.]
Effective date—1995 c 259: See note following RCW 49.60.010.
Severability—1993 c 510: See note following RCW 49.60.010.
Severability—1993 c 69: See note following RCW 49.60.030.
RCW 49.60.240 through 49.60.280 applicable to complaints concerning
unlawful use of refueling services for disabled: RCW 49.60.360.
Severability—1993 c 69: See note following RCW 49.60.030.
49.60.250
49.60.240
49.60.240 Complaint investigated—Conference, conciliation—Agreement, findings—Rules. After the filing of
(2004 Ed.)
49.60.250 Hearing of complaint by administrative
law judge—Limitation of relief—Penalties—Order. (1)
In case of failure to reach an agreement for the elimination of
[Title 49 RCW—page 69]
49.60.260
Title 49 RCW: Labor Regulations
such unfair practice, and upon the entry of findings to that
effect, the entire file, including the complaint and any and all
findings made, shall be certified to the chairperson of the
commission. The chairperson of the commission shall thereupon request the appointment of an administrative law judge
under Title 34 RCW to hear the complaint and shall cause to
be issued and served in the name of the commission a written
notice, together with a copy of the complaint, as the same
may have been amended, requiring the respondent to answer
the charges of the complaint at a hearing before the administrative law judge, at a time and place to be specified in such
notice.
(2) The place of any such hearing may be the office of
the commission or another place designated by it. The case in
support of the complaint shall be presented at the hearing by
counsel for the commission: PROVIDED, That the complainant may retain independent counsel and submit testimony and be fully heard. No member or employee of the
commission who previously made the investigation or caused
the notice to be issued shall participate in the hearing except
as a witness, nor shall the member or employee participate in
the deliberations of the administrative law judge in such case.
Any endeavors or negotiations for conciliation shall not be
received in evidence.
(3) The respondent shall file a written answer to the complaint and appear at the hearing in person or otherwise, with
or without counsel, and submit testimony and be fully heard.
The respondent has the right to cross-examine the complainant.
(4) The administrative law judge conducting any hearing
may permit reasonable amendment to any complaint or
answer. Testimony taken at the hearing shall be under oath
and recorded.
(5) If, upon all the evidence, the administrative law judge
finds that the respondent has engaged in any unfair practice,
the administrative law judge shall state findings of fact and
shall issue and file with the commission and cause to be
served on such respondent an order requiring such respondent to cease and desist from such unfair practice and to take
such affirmative action, including, (but not limited to) hiring,
reinstatement or upgrading of employees, with or without
back pay, an admission or restoration to full membership
rights in any respondent organization, or to take such other
action as, in the judgment of the administrative law judge,
will effectuate the purposes of this chapter, including action
that could be ordered by a court, except that damages for
humiliation and mental suffering shall not exceed ten thousand dollars, and including a requirement for report of the
matter on compliance. Relief available for violations of RCW
49.60.222 through 49.60.224 shall be limited to the relief
specified in RCW 49.60.225.
(6) If a determination is made that retaliatory action, as
defined in RCW 42.40.050, has been taken against a whistleblower, as defined in RCW 42.40.020, the administrative law
judge may, in addition to any other remedy, impose a civil
penalty upon the retaliator of up to three thousand dollars and
issue an order to the state employer to suspend the retaliator
for up to thirty days without pay. At a minimum, the administrative law judge shall require that a letter of reprimand be
placed in the retaliator's personnel file. All penalties recov[Title 49 RCW—page 70]
ered shall be paid into the state treasury and credited to the
general fund.
(7) The final order of the administrative law judge shall
include a notice to the parties of the right to obtain judicial
review of the order by appeal in accordance with the provisions of RCW 34.05.510 through 34.05.598, and that such
appeal must be served and filed within thirty days after the
service of the order on the parties.
(8) If, upon all the evidence, the administrative law judge
finds that the respondent has not engaged in any alleged
unfair practice, the administrative law judge shall state findings of fact and shall similarly issue and file an order dismissing the complaint.
(9) An order dismissing a complaint may include an
award of reasonable attorneys' fees in favor of the respondent
if the administrative law judge concludes that the complaint
was frivolous, unreasonable, or groundless.
(10) The commission shall establish rules of practice to
govern, expedite, and effectuate the foregoing procedure.
[1993 c 510 § 23; 1993 c 69 § 14; 1992 c 118 § 5; 1989 c 175
§ 115; 1985 c 185 § 23; 1983 c 293 § 1; 1981 c 259 § 2; 1957
c 37 § 18; 1955 c 270 § 17. Prior: 1949 c 183 § 8, part; Rem.
Supp. 1949 § 7614-27, part.]
Reviser's note: This section was amended by 1993 c 69 § 14 and by
1993 c 510 § 23, each without reference to the other. Both amendments are
incorporated in the publication of this section pursuant to RCW 1.12.025(2).
For rule of construction, see RCW 1.12.025(1).
Severability—1993 c 510: See note following RCW 49.60.010.
Severability—1993 c 69: See note following RCW 49.60.030.
Effective date—1989 c 175: See note following RCW 34.05.010.
Effective date—1981 c 259: "Sections 2, 3, 4 and 5 of this 1981 act
shall take effect upon the enactment of House Bill 101, 1981 Regular Session." [1981 c 259 § 7.] Sections 2, 3, 4, and 5 of 1981 c 259 consist of
amendments to RCW 49.60.250, 49.60.260, and 49.60.270 and the enactment of RCW 49.60.330, respectively. House Bill 101 was enacted as chapter 67, Laws of 1981. It was signed by the governor on April 25, 1981. Since
chapter 67, Laws of 1981 took effect on July 1, 1982, the apparent intent is
for sections 2, 3, 4, and 5 of 1981 c 259 to take effect on that date. For effective date of 1981 c 67, see note following RCW 34.12.010.
Assignment of administrative law judge for human rights commission proceedings: RCW 34.12.037.
49.60.260 Enforcement of orders of administrative
law judge—Appellate review of court order. (1) The commission or any person entitled to relief of a final order may
petition the court within the county wherein any unfair practice occurred or wherein any person charged with an unfair
practice resides or transacts business for the enforcement of
any final order which is not complied with and is issued by
the commission or an administrative law judge under the provisions of this chapter and for appropriate temporary relief or
a restraining order, and shall certify and file in court the final
order sought to be enforced. Within five days after filing such
petition in court, the commission or any person entitled to
relief of a final order shall cause a notice of the petition to be
sent by certified mail to all parties or their representatives.
(2) If within sixty days after the date the administrative
law judge's order concerning an unfair practice in a real estate
transaction is entered, no petition has been filed under subsection (1) of this section and the commission has not sought
enforcement of the final order under this section, any person
entitled to relief under the final order may petition for a
decree enforcing the order in the superior courts of the state
49.60.260
(2004 Ed.)
Discrimination—Human Rights Commission
of Washington for the county in which the unfair practice in
a real estate transaction under RCW 49.60.222 through
49.60.224 is alleged to have occurred.
(3) From the time the petition is filed, the court shall
have jurisdiction of the proceedings and of the questions
determined thereon, and shall have the power to grant such
temporary relief or restraining order as it deems just and suitable.
(4) If the petition shows that there is a final order issued
by the commission or administrative law judge under RCW
49.60.240 or 49.60.250 and that the order has not been complied with in whole or in part, the court shall issue an order
directing the person who is alleged to have not complied with
the administrative order to appear in court at a time designated in the order, not less than ten days from the date
thereof, and show cause why the administrative order should
not be enforced according to the terms. The commission or
any person entitled to relief of any final order shall immediately serve the noncomplying party with a copy of the court
order and the petition.
(5) The administrative order shall be enforced by the
court if the person does not appear, or if the person appears
and the court finds that:
(a) The order is regular on its face;
(b) The order has not been complied with; and
(c) The person's answer discloses no valid reason why
the order should not be enforced, or that the reason given in
the person's answer could have been raised by review under
RCW 34.05.510 through 34.05.598, and the person has given
no valid excuse for failing to use that remedy.
(6) The jurisdiction of the court shall be exclusive and its
judgment and decree shall be final, except that the same shall
be subject to appellate review by the supreme court or the
court of appeals, on appeal, by either party, irrespective of the
nature of the decree or judgment. The review shall be taken
and prosecuted in the same manner and form and with the
same effect as is provided in other cases. [1995 c 259 § 6;
1993 c 69 § 15; 1989 c 175 § 116; 1988 c 202 § 47; 1985 c
185 § 24; 1981 c 259 § 3; 1971 c 81 § 118; 1957 c 37 § 21.
Prior: 1949 c 183 § 9, part; Rem Supp. 1949 § 7614-27A,
part.]
Rules of court: Cf. RAP 2.2, 18.22.
Effective date—1995 c 259: See note following RCW 49.60.010.
Severability—1993 c 69: See note following RCW 49.60.030.
Effective date—1989 c 175: See note following RCW 34.05.010.
Severability—1988 c 202: See note following RCW 2.24.050.
Effective date—1981 c 259: See note following RCW 49.60.250.
49.60.270
49.60.270 Appeal from orders of administrative law
judge. Any respondent or complainant, including the commission, aggrieved by a final order of an administrative law
judge may obtain judicial review of such order as provided
under the administrative procedure act, chapter 34.05 RCW.
From the time a petition for review is filed, the court has
jurisdiction to grant to any party such temporary relief or
restraining order as it deems just and suitable. If the court
affirms the order, it shall enter a judgment and decree enforcing the order as affirmed. [1985 c 185 § 25; 1981 c 259 § 4;
1957 c 37 § 22. Prior: 1949 c 183 § 9, part; Rem. Supp. 1949
§ 7614-27A, part.]
(2004 Ed.)
49.60.340
Effective date—1981 c 259: See note following RCW 49.60.250.
49.60.280
49.60.280 Court shall expeditiously hear and determine. Petitions filed under RCW 49.60.260 and 49.60.270
shall be heard expeditiously and determined upon the transcript filed, without requirement of printing. Hearings in the
court under this chapter shall take precedence over all other
matters, except matters of the same character. [1957 c 37 §
23. Prior: 1949 c 183 § 9, part; Rem. Supp. 1949 § 761427A, part.]
49.60.310
49.60.310 Misdemeanor to interfere with or resist
commission. Any person who wilfully resists, prevents,
impedes, or interferes with the commission or any of its
members or representatives in the performance of duty under
this chapter, or who wilfully violates an order of the commission, is guilty of a misdemeanor; but procedure for the review
of the order shall not be deemed to be such wilful conduct.
[1985 c 185 § 26; 1961 c 100 § 4; 1957 c 37 § 26; 1949 c 183
§ 10; Rem. Supp. 1949 § 7614-28.]
49.60.320
49.60.320 Governor may act on orders against state
or political subdivisions. In any case in which the commission shall issue an order against any political or civil subdivision of the state, or any agency, or instrumentality of the state
or of the foregoing, or any officer or employee thereof, the
commission shall transmit a copy of such order to the governor of the state. The governor shall take such action to secure
compliance with such order as the governor deems necessary.
[1985 c 185 § 27; 1949 c 183 § 11; Rem. Supp. 1949 § 761429.]
49.60.330
49.60.330 First class cities of over one hundred
twenty-five thousand population—Administrative remedies authorized—Superior court jurisdiction. Any county
or any city classified as a first class city under RCW
35.01.010 with over one hundred twenty five thousand population may enact resolutions or ordinances consistent with
this chapter to provide administrative and/or judicial remedies for any form of discrimination proscribed by this chapter. The imposition of such administrative remedies shall be
subject to judicial review. The superior courts shall have
jurisdiction to hear all matters relating to violation and
enforcement of such resolutions or ordinances, including
petitions for preliminary relief, the award of such remedies
and civil penalties as are consistent with this chapter, and
enforcement of any order of a county or city administrative
law judge or hearing examiner pursuant to such resolution or
ordinance. Any local resolution or ordinance not inconsistent
with this chapter may provide, after a finding of reasonable
cause to believe that discrimination has occurred, for the filing of an action in, or the removal of the matter to, the superior court. [1993 c 69 § 16; 1983 c 5 § 2; 1981 c 259 § 5.]
Severability—1993 c 69: See note following RCW 49.60.030.
Effective date—1981 c 259: See note following RCW 49.60.250.
49.60.340
49.60.340 Election for civil action in lieu of hearing—
Relief. (1) Any complainant on whose behalf the reasonable
cause finding was made, a respondent, or an aggrieved person
may, with respect to real estate transactions pursuant to RCW
[Title 49 RCW—page 71]
49.60.350
Title 49 RCW: Labor Regulations
49.60.222 through 49.60.225, elect to have the claims on
which reasonable cause was found decided in a civil action
under RCW 49.60.030(2) in lieu of a hearing under RCW
49.60.250. This election must be made not later than twenty
days after the service of the reasonable cause finding. The
person making such election shall give notice of doing so to
the commission and to all other complainants and respondents to whom the charge relates. Any reasonable cause finding issued by the commission pursuant to the procedures contained in this chapter shall become final twenty days after service of the reasonable cause finding unless a written notice of
election is received by the commission within the twenty-day
period.
(2) If an election is made under subsection (1) of this section, the commission shall authorize not later than thirty days
after the election is made, and the attorney general shall commence, a civil action on behalf of the aggrieved person in a
superior court of the state of Washington seeking relief under
this section.
(3) Any aggrieved person with respect to the issues to be
determined in a civil action under this section may intervene
as of right in that civil action.
(4) In a civil action under this section, if the court finds
that an unfair practice in a real estate transaction has occurred
or is about to occur, the court may grant any relief that a court
could grant with respect to such an unfair practice in a real
estate transaction in a civil action under RCW 49.60.030(2).
If monetary relief is sought for the benefit of an aggrieved
person who does not intervene in the civil action, the court
shall not award such relief if that aggrieved person has not
complied with discovery orders entered by the court.
(5) In any administrative proceeding under this section
where the respondent is the prevailing party, a complainant
who intervenes by filing a notice of independent appearance
may be liable for reasonable attorneys' fees and costs only to
the extent that the intervening participation in the administrative proceeding was frivolous or vexatious, or was for the
purpose of harassment.
(6) In any administrative proceeding brought under
RCW 49.60.225 or any court proceeding arising therefrom,
or any civil action under this section, the administrative law
judge or the court in its discretion may allow the prevailing
party, other than the commission, reasonable attorneys' fees
and costs. [1993 c 69 § 13.]
Severability—1993 c 69: See note following RCW 49.60.030.
49.60.350
49.60.350 Temporary or preliminary relief—Superior court jurisdiction—Petition of commission. (1) The
superior courts of the state of Washington shall have jurisdiction upon petition of the commission, through the attorney
general, to seek appropriate temporary or preliminary relief
to enjoin any unfair practice in violation of RCW 49.60.222
through 49.60.225, from which prompt judicial action is necessary to carry out the purposes of this chapter.
(2) The commencement of a civil action under this section does not preclude the initiation or continuation of administrative proceedings under this chapter. [1993 c 69 § 2.]
Severability—1993 c 69: See note following RCW 49.60.030.
[Title 49 RCW—page 72]
49.60.360
49.60.360 Refueling services for disabled drivers—
Violation—Investigation—Intentional display of plate or
placard invalid or not legally issued prohibited—Fine—
Notice to disabled persons. (1) Every person, firm, partnership, association, trustee, or corporation which operates a
gasoline service station, or other facility which offers gasoline or other motor vehicle fuel for sale to the public from
such a facility, shall provide, upon request, refueling service
to disabled drivers, unaccompanied by passengers capable of
safely providing refueling service, of vehicles which display
a disabled person's license plate or placard issued by the
department of licensing. The price charged for the motor
vehicle fuel in such a case shall be no greater than that which
the facility otherwise would charge the public generally to
purchase motor vehicle fuel without refueling service. This
section does not require a facility to provide disabled drivers
with services, including but not limited to checking oil or
cleaning windshields, other than refueling services.
(2) This section does not apply to:
(a) Exclusive self-service gas stations which have
remotely controlled gas pumps and which never provide
pump island service; and
(b) Convenience stores which sell gasoline, which have
remotely controlled gas pumps and which never provide
pump island service.
(3) Any person who, as a responsible managing individual setting service policy of a station or facility or as an
employee acting independently against set service policy,
acts in violation of this section is guilty of a misdemeanor.
This subsection shall be enforced by the prosecuting attorney.
(4) The human rights commission shall, upon the filing
of a verified written complaint by any person, investigate the
actions of any person, firm, partnership, association, trustee,
or corporation alleged to have violated this section. The complaint shall be in the form prescribed by the commission. The
commission may, upon its own motion, issue complaints and
conduct investigations of alleged violations of this section.
RCW 49.60.240 through 49.60.280 shall apply to complaints under this section.
(5) In addition to those matters referred pursuant to subsection (3) of this section, the prosecuting attorney may
investigate and prosecute alleged violations of this section.
(6) Any person who intentionally displays a license plate
or placard which is invalid, or which was not lawfully issued
to that person, for the purpose of obtaining refueling service
under subsection (1) of this section shall be subject to a civil
fine of one hundred dollars for each such violation.
(7) A notice setting forth the provisions of this section
shall be provided by the department of licensing to every person, firm, partnership, association, trustee, or corporation
which operates a gasoline service station, or other facility
which offers gasoline or other motor vehicle fuel for sale to
the public from such a facility.
(8) A notice setting forth the provisions of this section
shall be provided by the department of licensing to every person who is issued a disabled person's license plate or placard.
(9) For the purposes of this section, "refueling service"
means the service of pumping motor vehicle fuel into the fuel
tank of a motor vehicle.
(2004 Ed.)
Employee Benefit Plans
(10) Nothing in this section limits or restricts the rights
or remedies provided under chapter 49.60 RCW. [1994 c 262
§ 17; 1985 c 309 § 1. Formerly RCW 70.84.090.]
49.60.370
49.60.370 Liability for killing or injuring dog guide
or service animal—Penalty in addition to other remedies
or penalties—Recovery of attorneys' fees and costs—No
duty to investigate. (1) A person who negligently or maliciously kills or injures a dog guide or service animal is liable
for a penalty of one thousand dollars, to be paid to the user of
the animal. The penalty shall be in addition to and not in lieu
of any other remedies or penalties, civil or criminal, provided
by law.
(2) A user or owner of a dog guide or service animal,
whose animal is negligently or maliciously injured or killed,
is entitled to recover reasonable attorneys' fees and costs
incurred in pursuing any civil remedy.
(3) The commission has no duty to investigate any negligent or malicious acts referred to under this section. [1997 c
271 § 23; 1988 c 89 § 1. Formerly RCW 70.84.100.]
49.60.380
49.60.380 License waiver for dog guide and service
animals. A county, city, or town shall honor a request by a
blind person or hearing impaired person not to be charged a
fee to license his or her dog guide, or a request by a physically
disabled person not to be charged a fee to license his or her
service animal. [1997 c 271 § 24; 1989 c 41 § 1. Formerly
RCW 70.84.120.]
49.60.390
49.60.390 Rule-making authority—Deadline—1997
c 271. The Washington state human rights commission shall
adopt rules implementing chapter 271, Laws of 1997 no later
than March 1, 1998. [1997 c 271 § 25.]
49.64.020
(7) For the purposes of this section, "state" includes, but
is not necessarily limited to, the state itself, any city, county,
public college or university, community college, school district, special district, or other political subdivision or governmental instrumentality of or within the state.
(8) The remedies available for violations of this section
shall be the same, regardless of the injured party's race, sex,
color, ethnicity, or national origin, as are otherwise available
for violations of Washington antidiscrimination law.
(9) This section shall be self-executing. If any part or
parts of this section are found to be in conflict with federal
law, the United States Constitution, or the Washington state
Constitution, the section shall be implemented to the maximum extent that federal law, the United States Constitution,
and the Washington state Constitution permit. Any provision
held invalid shall be severable from the remaining portions of
this section. [1999 c 3 § 1 (Initiative Measure No. 200,
approved November 3, 1998).]
49.60.401
49.60.401 Short title—1999 c 3. RCW 49.60.400 shall
be known and cited as the Washington State Civil Rights Act.
[1999 c 3 § 2 (Initiative Measure No. 200, approved November 3, 1998).]
Chapter 49.64
Chapter 49.64 RCW
EMPLOYEE BENEFIT PLANS
Sections
49.64.010
49.64.020
49.64.030
49.64.040
Duration of trusts for employee benefits.
Trusts exempted from limitation as to duration.
Employee benefit plans—Payment or refund as discharge—
Adverse claims.
Dental care assistance plans—Options required.
Health care savings accounts authorized: Chapter 48.68 RCW.
49.60.400
49.60.400 Discrimination, preferential treatment
prohibited. (1) The state shall not discriminate against, or
grant preferential treatment to, any individual or group on the
basis of race, sex, color, ethnicity, or national origin in the
operation of public employment, public education, or public
contracting.
(2) This section applies only to action taken after
December 3, 1998.
(3) This section does not affect any law or governmental
action that does not discriminate against, or grant preferential
treatment to, any individual or group on the basis of race, sex,
color, ethnicity, or national origin.
(4) This section does not affect any otherwise lawful
classification that:
(a) Is based on sex and is necessary for sexual privacy or
medical or psychological treatment; or
(b) Is necessary for undercover law enforcement or for
film, video, audio, or theatrical casting; or
(c) Provides for separate athletic teams for each sex.
(5) This section does not invalidate any court order or
consent decree that is in force as of December 3, 1998.
(6) This section does not prohibit action that must be
taken to establish or maintain eligibility for any federal program, if ineligibility would result in a loss of federal funds to
the state.
(2004 Ed.)
49.64.010
49.64.010 Duration of trusts for employee benefits.
Any trust heretofore or hereafter created for the purposes and
of the type enumerated in RCW 49.64.020, whether in real or
personal property or in real and personal property, may continue for such time as may be necessary to accomplish the
purposes of the trust and shall not be invalid as violating any
statute or rule of law against perpetuities, or against accumulations of earnings, or concerning the suspension of the
power of alienation of the title to property, or otherwise limiting the duration of trusts. [1955 c 158 § 1.]
49.64.020
49.64.020 Trusts exempted from limitation as to
duration. Trusts which are entitled to the exemption from
limitation as to their duration provided for in RCW 49.64.010
must be:
(1) Created by an employer primarily for the benefit of
some or all of the employees of such employer or the families
or appointees of such employees, under any pension, profitsharing, stock bonus, retirement, disability, death benefit or
other similar types of employee-benefit plans; and
(2) Contributed to by the employer or employees or both;
and
(3) Existing for the purpose of distributing to or for the
benefit of some or all of such employees (either before or
after their employment ceases), their families or appointees,
[Title 49 RCW—page 73]
49.64.030
Title 49 RCW: Labor Regulations
the earnings or principal, or earnings and principal, of the
trust. [1955 c 158 § 2.]
employers with greater than twenty-five employees under
coverage. [1988 c 259 § 1.]
49.64.030
49.64.030 Employee benefit plans—Payment or
refund as discharge—Adverse claims. Notwithstanding
the provisions of RCW 26.16.030, whenever payment or
refund is made to an employee, former employee, or his beneficiary or estate pursuant to and in full compliance with a
written retirement, death or other employee benefit plan or
savings plan, such payment or refund shall fully discharge the
employer and any trustee or insurance company making such
payment or refund from all adverse claims thereto unless,
before such payment or refund is made, the employer or
former employer, where the payment is made by the
employer or former employer, has received at its principal
place of business within this state, written notice by or on
behalf of some other person that such other person claims to
be entitled to such payment or refund or some part thereof, or
where a trustee or insurance company is making the payment,
such notice has been received by the trustee or insurance
company at its home office or its principal place of business
within this state, and if none, such notice may be made on the
secretary of state: PROVIDED, HOWEVER, That nothing
contained in this section shall affect any claim or right to any
such payment or refund or part thereof as between all persons
other than employer and the trustee or insurance company
making such payment or refund. [1953 c 45 § 1. Formerly
RCW 49.52.065.]
Employees' benefit deductions are trust funds: RCW 49.52.010.
49.64.040
49.64.040 Dental care assistance plans—Options
required. (1) Unless the context clearly requires otherwise,
in this section "dental care assistance plan" means any plan of
dental insurance offered by an insurer as defined by chapter
48.01 RCW and any agreement for dental care benefits
entered into or renewed after January 1, 1989, provided by a
health care service contractor as defined by chapter 48.44
RCW.
(2) Each employer, public or private, that offers its
employees a dental care assistance plan and each employee
benefits fund that offers its members a dental care assistance
plan limiting the provider of dental care to designated providers or group of providers, shall make available to and inform
its employees or members of the option of enrolling in an
alternative dental care assistance plan that permits the
employees or members to obtain dental care services from
any licensed dental care provider of their choice. The portion
of the premium paid by the employer for the limiting plan
shall be comparable to, but in no case greater than, the portion of the premium paid by the employer for the other plan.
If employees are members of a bona fide bargaining unit covered by a labor-management collective bargaining agreement, the selection of the options required by this section
may be specified in the agreement. The provisions of this section are not mandatory if the employees are covered by TaftHartley health care trust, except that the labor-management
trustees may contract with a dental care assistance plan if a
feasibility study determines it is to the advantage of the members: PROVIDED, That this section shall only apply to
[Title 49 RCW—page 74]
Chapter 49.66
Chapter 49.66 RCW
HEALTH CARE ACTIVITIES
Sections
49.66.010
49.66.020
49.66.030
49.66.040
49.66.050
49.66.060
49.66.070
49.66.080
49.66.090
49.66.100
49.66.110
49.66.120
49.66.900
Purpose—Policy—Declaration.
Definitions.
Bargaining unit.
Unfair labor practice by health care activity.
Unfair labor practice by employee organization or agent.
Strike and picketing.
Relief from unfair labor practice—Actions—Remedial orders.
Rules and regulations—Procedures.
Board of arbitration—Members—Selection—Chairman.
Board of arbitration—Hearings—Findings.
Board of arbitration—Standards or guidelines.
Arbitrator—Compensation—Expenses.
Severability—1972 ex.s. c 156.
49.66.010
49.66.010 Purpose—Policy—Declaration. It is the
public policy of the state to expedite the settlement of labor
disputes arising in connection with health care activities, in
order that there may be no lessening, however temporary, in
the quality of the care given to patients. It is the legislative
purpose by this chapter to promote collective bargaining
between health care activities and their employees, to protect
the right of employees of health care activities to organize
and select collective bargaining units of their own choosing.
It is further determined that any agreements involving
union security including an all-union agreement or agency
agreement must safeguard the rights of nonassociation of
employees, based on bona fide religious tenets or teachings
of a church or religious body of which such employee is a
member. Such employee must pay an amount of money
equivalent to regular union dues and initiation fees and
assessments, if any, to a nonreligious charity or to another
charitable organization mutually agreed upon by the
employee affected and the representative of the labor organization to which such employee would otherwise pay dues.
The employee shall furnish written proof that this has been
done. If the employee and representative of the labor organization do not reach agreement on the matter, the department
shall designate such organization. [1973 2nd ex.s. c 3 § 1;
1972 ex.s. c 156 § 1.]
49.66.020
49.66.020 Definitions. As used in this chapter:
(1) "Health care activity" includes any hospital, nursing
home, institution, agency or establishment, exclusive of those
operated by the state, its municipalities, or political subdivisions, having for one of its principal purposes the preservation of health or the care of sick, aged or infirm persons.
(2) "Bargaining unit" includes any group of employees
of a health care activity having substantially common interests with respect to working conditions. The composition of a
bargaining unit may be determined by common consent
between an employer and its employees, or, in the event
either party shall apply to the director of labor and industries
for a determination of the composition of a bargaining unit, it
shall be determined by the director of labor and industries or
his delegated representative. No bargaining unit shall be
(2004 Ed.)
Health Care Activities
found appropriate if it includes guards together with other
employees.
(3) "Employee" includes any registered nurse or licensed
practical nurse or service personnel performing services for
wages for a health care activity. The term shall not apply to a
member of a religious order assigned to a health care activity
by the order as a part of his obligations to it; nor shall it apply
to persons performing services in connection with healing by
prayer or spiritual means alone in accordance with the tenets
and practices of recognized church or religious denominations by adherents thereof; nor shall it apply to supervisors.
(4) "Employer" includes any person, agency, corporation, company or other organization engaged in the operation
of a health care activity, whether for profitable or charitable
purposes.
(5) "Supervisor" means any individual having authority,
in the interest of the employer, to hire, transfer, suspend, lay
off, recall, promote, discharge, assign, reward, or discipline
other employees, or responsibly to direct them, or to adjust
their grievances, or effectively to recommend such action, if
in connection with the foregoing the exercise of such authority is not of a merely routine or clerical nature, but requires
the use of independent judgment. Supervisor includes registered nurses only if administrative supervision is his or her
primary duty and activity.
(6) "Guard" means any individual employed as a guard
to enforce against employees and other persons rules to protect property of the employer or to protect the safety of persons on the employer's premises.
(7) "Director" means the director of the department of
labor and industries.
(8) "Department" means the department of labor and
industries. [1973 2nd ex.s. c 3 § 2; 1972 ex.s. c 156 § 2.]
49.66.030
49.66.030 Bargaining unit. An employee association
shall be deemed the properly designated representative of a
bargaining unit when it can show evidence that bargaining
rights have been assigned to it by a majority of the employees
in the bargaining unit. Should questions arise concerning the
representative status of any employee organization claiming
to represent a bargaining unit of employees, upon petition by
such an organization, it shall be the duty of the director, acting by himself or through a designee to investigate and determine the composition of the organization. Any organization
found authorized by not less than thirty percent of the
employees of a bargaining unit shall be eligible to apply for
an election to determine its rights to represent the unit. If
more than one organization shall claim to represent any unit,
the director, or his designee, may conduct an election by
secret ballot to determine which organization shall be authorized to represent the unit. In order to be certified as a bargaining representative, an employee organization must
receive, in a secret ballot election, votes from a majority of
the employees who vote in the election, except that nothing in
this section shall prohibit the voluntary recognition of a labor
organization as a bargaining representative by an employer
upon a showing of reasonable proof of majority. In any election held pursuant to this section, there shall be a choice on
the ballot for employees to designate that they do not wish to
be represented by any bargaining representative. No representation election shall be directed in any bargaining unit or
(2004 Ed.)
49.66.050
any subdivision thereof within which, in the preceding
twelve-month period, a valid election has been held. Thirty
percent of the employees of an employer may file a petition
for a secret ballot election to ascertain whether the employee
organization which has been certified or is currently recognized by their employer as their bargaining representative is
no longer their bargaining representative.
No employee organization shall be certified as the representative of employees in a bargaining unit of guards, if such
organization admits to membership, or is affiliated directly or
indirectly with an organization which admits to membership,
employees other than guards. The determination shall be
based upon a plurality of votes cast in such election, and shall
remain in effect for a period of not less than one year. In
determining appropriate bargaining units, the director shall
limit such units to groups consisting of registered nurses,
licensed practical nurses or service personnel: PROVIDED,
HOWEVER, That if a majority of each such classification
desires inclusion within a single bargaining unit, they may
combine into a single unit. [1973 2nd ex.s. c 3 § 3; 1972 ex.s.
c 156 § 3.]
49.66.040
49.66.040 Unfair labor practice by health care activity. It shall be deemed an unfair labor practice, and unlawful,
for any health care activity to:
(1) Interfere with, restrain or coerce employees in any
manner in the exercise of their right of self-organization:
PROVIDED, That the expressing of any views, argument, or
opinion, or the dissemination thereof, whether in written,
printed, graphic or visual form, shall not constitute or be evidence of an unfair labor practice under any of the provisions
of this chapter, if such expression contains no threat of
reprisal or force or promise of benefit;
(2) Initiate, create, dominate, contribute to or interfere
with the formation or administration of any employee organization having bargaining as one of its functions;
(3) Discriminate in regard to hire, terms, or conditions of
employment in order to discourage membership in any
employee organization having collective bargaining as one of
its functions;
(4) Refuse to meet and bargain in good faith with the
duly designated representatives of an appropriate bargaining
unit of employees; and it shall be a requirement of good faith
bargaining that the parties be willing to reduce to writing, and
have their representatives sign, any agreement arrived at
through negotiation and discussion. [1972 ex.s. c 156 § 4.]
49.66.050
49.66.050 Unfair labor practice by employee organization or agent. It shall be an unfair labor practice and
unlawful, for any employee organization or its agent to:
(1) Restrain or coerce (a) employees in the exercise of
their right to refrain from self-organization, or (b) an
employer in the selection of its representatives for purposes
of collective bargaining or the adjustment of grievances;
(2) Cause or attempt to cause an employer to discriminate against an employee in violation of subsection (3) of
RCW 49.66.040 or to discriminate against an employee with
respect to whom membership in such organization has been
denied or terminated on some ground other than his failure to
[Title 49 RCW—page 75]
49.66.060
Title 49 RCW: Labor Regulations
tender the periodic dues and initiation fees uniformly
required as a condition of acquiring or retaining membership;
(3) Refuse to meet and bargain in good faith with an
employer, provided it is the duly designated representative of
the employer's employees for purposes of collective bargaining;
(4) Require of employees covered by a union security
agreement the payment, as a condition precedent to becoming
a member of such organization, of a fee in an amount which
the director finds excessive or discriminatory under all the
circumstances. In making such a finding, the director shall
consider, among other relevant factors, the practices and customs of labor organizations in the particular industry, and the
wages currently paid to the employees affected;
(5) Cause or attempt to cause an employer to pay or
deliver or agree to pay or deliver any money or other thing of
value, in the nature of an exaction, for services which are not
performed or not to be performed;
(6) Enter into any contract or agreement, express or
implied, whereby an employer or other person ceases or
refrains, or agrees to cease or refrain, from handling, using,
selling, transporting or otherwise dealing in any of the products or services of any other employer or person, or to cease
doing business with any other employer or person, and any
such contract or agreement shall be unenforceable and void;
or
(7) Engage in, or induce or encourage any individual
employed by any employer or to engage in, an activity prohibited by RCW 49.66.060. [1973 2nd ex.s. c 3 § 4; 1972
ex.s. c 156 § 5.]
49.66.060
49.66.060 Strike and picketing. No employee organization, bargaining representative, person or employee shall
authorize, sanction, engage in, or participate in a strike
(including but not limited to a concerted work stoppage of
any kind, concerted slowdown or concerted refusal or failure
to report for work or perform work) or picketing against an
employer under any circumstances, whether arising out of a
recognition dispute, bargaining impasse or otherwise: PROVIDED, That nothing in this section shall prohibit picketing
or other publicity for the sole purpose of truthfully advising
the public of the existence of a dispute with the employer,
unless an effect of such picketing or other publicity is (a) to
induce any employee of the employer or any other individual,
in the course of his employment, not to pick up, deliver or
transfer goods, not to enter the employer's premises, or not to
perform services; or (b) to induce such an employee or individual to engage in a strike. [1972 ex.s. c 156 § 6.]
49.66.070
49.66.070 Relief from unfair labor practice—
Actions—Remedial orders. The director or any employee
organization qualified to apply for an election under RCW
49.66.030 as now or hereafter amended or any employer may
maintain in its name or in the name of its members legal
action in any county in which jurisdiction of the employer or
employee organization may be obtained, to seek relief from
the commission of an unfair labor practice: PROVIDED,
That such employer or employee organization exhausts the
administrative remedies under rules and regulations promulgated by the department prior to seeking such court action.
[Title 49 RCW—page 76]
The department is empowered and directed to prevent
any unfair labor practice and to issue appropriate remedial
orders. Any party aggrieved by any remedial order is entitled
to the judicial review thereof in accordance with the provisions of chapter 34.05 RCW. [1973 2nd ex.s. c 3 § 5; 1972
ex.s. c 156 § 7.]
49.66.080
49.66.080 Rules and regulations—Procedures. The
director shall have the power to make such rules and regulations not inconsistent with this chapter, including the establishment of procedures for the hearing and determination of
charges alleging unfair labor practices, and for a determination on application by either party when an impasse has
arisen, and as he shall determine are necessary to effectuate
its purpose and to enable him to carry out its provisions.
[1973 2nd ex.s. c 3 § 6; 1972 ex.s. c 156 § 8.]
49.66.090
49.66.090 Board of arbitration—Members—Selection—Chairman. In the event that a health care activity and
an employees' bargaining unit shall reach an impasse, the
matters in dispute shall be submitted to a board of arbitration
composed of three arbitrators for final and binding resolution.
The board shall be selected in the following manner: Within
ten days, the employer shall appoint one arbitrator and the
employees shall appoint one arbitrator. The two arbitrators so
selected and named shall within ten days agree upon and
select the name of a third arbitrator who shall act as chairman.
If, upon the expiration of the period allowed therefor the arbitrators are unable to agree on the selection of a third arbitrator, such arbitrator shall be appointed at the request of either
party in accordance with the provisions of RCW 7.04.050
and he shall act as chairman of the arbitration board. [1973
2nd ex.s. c 3 § 7; 1972 ex.s. c 156 § 9.]
49.66.100
49.66.100 Board of arbitration—Hearings—Findings. The arbitration board, acting through its chairman,
shall call a hearing to be held within ten days after the date of
the appointment of the chairman. The board shall conduct
public or private hearings. Reasonable notice of such hearings shall be given to the parties who shall appear and be
heard either in person or by counsel or other representative.
Hearings shall be informal and the rules of evidence prevailing in judicial proceedings shall not be binding. A recording
of the proceedings shall be taken. Any oral or documentary
evidence and other data deemed relevant by the board may be
received in evidence. The board shall have the power to
administer oaths, require the attendance of witnesses, and the
production of such books, papers, contracts, agreements and
documents as may be deemed by the board material to a just
determination of the issues in dispute and to issue subpoenas.
If any person refuses to obey such subpoena or refuses to be
sworn to testify, or any witness, party or attorney is guilty of
any contempt while in attendance at any hearing held hereunder, the board may invoke the jurisdiction of any superior
court and such court shall have jurisdiction to issue an appropriate order. A failure to obey such order may be punished by
the court as a contempt thereof. The hearing conducted by the
arbitrators shall be concluded within twenty days of the time
of commencement and, within ten days after conclusion of
the hearings, the arbitrator shall make written findings and a
(2004 Ed.)
Worker and Community Right to Know Act
written opinion upon the issues presented, a copy of which
shall be mailed or otherwise delivered to the employees'
negotiating agent or its attorney or other designated representative and to the employer or the employer's attorney or designated representative. The determination of the dispute
made by the board shall be final and binding upon both parties. [1972 ex.s. c 156 § 10.]
49.66.110
49.66.110 Board of arbitration—Standards or guidelines. In making its determination, the board of arbitrators
shall be mindful of the legislative purpose enumerated in
RCW 49.66.010 and as additional standards or guidelines to
aid it in reaching a decision, it shall take into consideration
the following factors:
(1) Wage rates or other conditions of employment of the
health care activity in question as compared with prevailing
wage rates or other conditions of employment in the local
operating area involved.
(2) Wage rates or other working conditions as compared
with wage rates or other working conditions maintained for
the same or similar work of workers in the local area.
(3) The overall compensation of employees having
regard not only to wages for time actually worked but also for
time not actually worked, including vacations, holidays and
other excused time and for all fringe benefits received.
(4) Interest and welfare of the public.
(5) Comparison of peculiarities of employment in regard
to other comparable trades or professions, specifically:
(a) Physical qualifications.
(b) Educational qualifications.
(c) Job training and skills.
(6) Efficiency of operation of the health care activity.
[1972 ex.s. c 156 § 11.]
49.66.120
49.66.120 Arbitrator—Compensation—Expenses.
The arbitrator so selected by the parties shall be paid at the
daily rate or rates not to exceed the usual or customary rates
paid to arbitrators in addition to travel expenses at the rates
provided in RCW 43.03.050 and 43.03.060 as now existing
or hereafter amended. Such sums together with all expenses
of the hearing shall be borne equally by the parties to the arbitration proceedings. [1975-'76 2nd ex.s. c 34 § 147; 1973 2nd
ex.s. c 3 § 8; 1972 ex.s. c 156 § 12.]
Effective date—Severability—1975-'76 2nd ex.s. c 34: See notes following RCW 2.08.115.
49.66.900
49.66.900 Severability—1972 ex.s. c 156. If any portion of this chapter, or its application to any particular health
care activity or class of health care activity, should be held
invalid, the remainder of the chapter, or its application to
other health care activities, or other classes thereof, shall not
be affected. [1972 ex.s. c 156 § 13.]
Chapter 49.70
Chapter 49.70 RCW
WORKER AND COMMUNITY
RIGHT TO KNOW ACT
(2004 Ed.)
49.70.105
49.70.110
49.70.115
49.70.119
49.70.140
49.70.150
49.70.160
49.70.165
49.70.170
49.70.175
49.70.177
49.70.180
49.70.190
49.70.200
49.70.210
49.70.900
49.70.905
Employee may request workplace survey or material safety
data sheet.
Foreign language translation of written materials.
Discharge or discipline of employee prohibited—Application
of discrimination statutes.
Agricultural employees—Information and training on hazardous chemicals.
Agricultural employees—Pesticides—Records.
Educational brochures and public service announcements.
Civil action authorized.
Request for additional information—Confidentiality.
Trade secret exemptions.
Worker and community right to know fund—Employer
assessments—Audits—Appeal of assessment.
Worker and community right to know fund—Expenditure—
Disbursements.
Penalties for late payment of fees—Collection of fees and penalties.
Application of enforcement and administrative procedures of
Washington industrial safety and health act.
Compliance with chapter—Notice—Fines—Injunctive relief.
Adoption of rules.
Application of chapter to consumer products.
Short title.
Severability—1984 c 289.
49.70.010
49.70.010 Legislative findings. The legislature finds
and declares that the proliferation of hazardous substances in
the environment poses a growing threat to the public health,
safety, and welfare; that the constantly increasing number
and variety of hazardous substances, and the many routes of
exposure to them make it difficult and expensive to monitor
adequately and detect any adverse health effects attributable
thereto; that individuals themselves are often able to detect
and thus minimize effects of exposure to hazardous substances if they are aware of the identity of the substances and
the early symptoms of unsafe exposure; and that individuals
have an inherent right to know the full range of the risks they
face so that they can make reasoned decisions and take
informed action concerning their employment and their living conditions.
The legislature further declares that local health, fire,
police, safety, and other government officials require detailed
information about the identity, characteristics, and quantities
of hazardous substances used and stored in communities
within their jurisdictions, in order to plan adequately for, and
respond to, emergencies, enforce compliance with applicable
laws and regulations concerning these substances, and to
compile records of exposures to hazardous substances over a
period of time that will facilitate the diagnosis, treatment, and
prevention of disease.
The legislature further declares that the extent of the
toxic contamination of the air, water, and land in this state has
caused a high degree of concern among its residents and that
much of this concern is needlessly aggravated by the unfamiliarity of these substances to residents.
The legislature therefore determines that while these
substances have contributed to the high quality of life we
enjoy in our state, it is in the public interest to establish a
comprehensive program for the disclosure of information
about hazardous substances in the workplace and the community, and to provide a procedure whereby residents of this
state may gain access to this information. [1984 c 289 § 2.]
49.70.020
Sections
49.70.010
49.70.020
49.70.100
49.70.020
Legislative findings.
Definitions.
49.70.020 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
[Title 49 RCW—page 77]
49.70.100
Title 49 RCW: Labor Regulations
(1) "Department" means the department of labor and
industries.
(2) "Employee" means an employee of an employer who
is employed in the business of his or her employer whether by
way of manual labor or otherwise and every person in this
state who is engaged in the employment of or who is working
under an independent contract the essence of which is personal labor for an employer under this chapter whether by
way of manual labor or otherwise. However, for the purposes
of this chapter, employee shall not mean immediate family
members of the officers of any corporation, partnership, sole
proprietorship or other business entity or officers of any
closely held corporation engaged in agricultural production
of crops or livestock.
(3) "Employer" means any person, firm, corporation,
partnership, business trust, legal representative, or other business entity that engages in any business, industry, profession,
or activity in this state and employs one or more employees
or who contract with one or more persons, the essence of
which is the personal labor of such person or persons and
includes the state, counties, cities, and all municipal corporations, public corporations, political subdivisions of the state,
and charitable organizations. [1985 c 409 § 1.]
49.70.100
49.70.100 Employee may request workplace survey
or material safety data sheet. An employee or employee
representative may request, in writing, from the employer, a
copy of a workplace survey or a material safety data sheet,
filed pursuant to this chapter for the employee's work area.
The employer shall supply this material within three working
days of the request. This section shall not apply to employees
of vessels while the employees are on the water. [1989 c 11
§ 22; 1984 c 289 § 15.]
Severability—1989 c 11: See note following RCW 9A.56.220.
49.70.105
49.70.105 Foreign language translation of written
materials. (1) The department shall prepare and make available to employers or the public, upon request, a translation in
any of the five most common foreign languages used in the
workplace, of a written hazard communication program, a
material safety data sheet, or written materials prepared by
the department to inform employees of their rights relating to
hazard communication standards under this chapter and
chapter 49.17 RCW.
(2) An employer employing employees who have trouble communicating in English shall make reasonable efforts
to post any notices in the employees' native languages as provided by the department. [1985 c 409 § 2.]
49.70.110
49.70.110 Discharge or discipline of employee prohibited—Application of discrimination statutes. No
employer may discharge, cause to be discharged, or otherwise discipline, penalize, or discriminate against any
employee because the employee or the employee's representative has exercised any right established in this chapter. The
discrimination provisions of chapter 49.17 RCW apply to this
chapter. [1984 c 289 § 16.]
49.70.115
49.70.115 Agricultural employees—Information and
training on hazardous chemicals. (1) An employer shall
[Title 49 RCW—page 78]
provide employees engaged in agricultural production of
crops or livestock or agricultural services with information
and training on hazardous chemicals in their workplace at the
time of their initial assignment, and whenever a new hazard is
introduced into their work area, such instruction shall be tailored to the types of hazards to which the employees will be
exposed. Seasonal and temporary employees who are not
exposed to hazardous chemicals in their work area need not
be trained.
(2) Employers shall maintain any material safety data
sheets that are received with incoming shipments of hazardous chemicals, and ensure that they are accessible to agricultural employees upon request.
(3) Employers shall ensure that labels on incoming containers of hazardous chemicals are not removed or defaced.
[1985 c 409 § 3.]
49.70.119 Agricultural employees—Pesticides—
Records. (1) An employer who applies pesticides in connection with the production of an agricultural crop, or who
causes pesticides to be applied in connection with such production, shall keep records for each application, which shall
include the following information:
(a) The location of the land where the pesticide was
applied or site where the pesticide was stored;
(b) The year, month, day, and time the pesticide was
applied;
(c) The product name used on the registered label and the
United States environmental protection agency registration
number, if applicable, of the pesticide that was applied or
stored;
(d) The crop or site to which the pesticide was applied;
(e) The amount of pesticide applied per acre, or other
appropriate measure;
(f) The concentration of pesticide that was applied;
(g) The number of acres, or other appropriate measure, to
which pesticide was applied;
(h) If applicable, the licensed applicator's name, address,
and telephone number and the name of the individual or individuals making the application;
(i) The direction and estimated velocity of the wind at
the time the pesticide was applied: PROVIDED, That this
subsection (i) shall not apply to applications of baits in bait
stations and pesticide applications within structures; and
(j) Any other reasonable information required by the
director.
(2) The records shall be updated on the same day that a
pesticide is applied. If the employer has been provided a copy
of a pesticide application record under RCW
17.21.100(2)(b), the copy may be used as the record of the
pesticide application required under this section. The
employer shall maintain and preserve the pesticide application records for no less than seven years from the date of the
application of the pesticide to which the records refer.
(3) The pesticide application records shall be readily
accessible to the employer's employees and their designated
representatives in a central location in the workplace beginning on the day the application is made and for at least thirty
days following the application. The employee or representative shall be entitled to view the pesticide application records
and make his or her own record from the information con49.70.119
(2004 Ed.)
Worker and Community Right to Know Act
tained in the application records. New or newly assigned
employees shall be made aware of the accessibility of the
application records before working with pesticides or in a
work area containing pesticides.
(4)(a) An employer subject to this section who stores
pesticides shall at least once in each calendar year perform an
inventory of the pesticides stored in any work area. The pesticide inventory records shall include the following information:
(i) The location of the site where the pesticide is stored;
(ii) The year, month, day, and time the pesticide was first
stored;
(iii) The product name used on the registered label and
the United States environmental protection agency registration number, if applicable, of the pesticide that is stored; and
(iv) The amount of pesticide in storage at the time of the
inventory.
The inventory records shall be maintained and preserved for
no less than seven years.
(b) In addition to performing the annual pesticide inventory required under this subsection, an employer shall maintain a record of pesticide purchases made between the annual
inventory dates. In lieu of this purchase record, an employer
may obtain from distributors from whom pesticides are purchased a statement obligating the distributor to maintain the
purchase records on behalf of the employer and in satisfaction of the employer's obligations under this subsection. The
director may require the submission of all purchase records
from employers or distributors, covering the purchases during a specified period of time or in a specified geographical
area.
(5) If activities for which the records are maintained
cease, the records shall be filed with the department. If an
employer subject to this section is succeeded or replaced in
that function by another person, the person who succeeds or
replaces the employer shall retain the records as required by
this section but is not liable for violations committed by the
former employer under this chapter or rules adopted under
this chapter, including violations relating to the retention and
preservation of records.
(6)(a) The records required under this section shall be
readily accessible to the department for inspection. Copies of
the records shall be provided, on request, to: An employee or
the employee's designated representative in the case of an
industrial insurance claim filed under Title 51 RCW with the
department of labor and industries, treating health care personnel, the pesticide incident reporting and tracking review
panel, or department representative. The designated representative or treating health care personnel are not required to
identify the employee represented or treated. The department
shall keep the name of any affected employee confidential in
accordance with RCW 49.17.080(1). When a request for
records is made under this subsection by treating health care
personnel and the record is required for determining treatment, copies of the record shall be provided immediately. For
all other requests, copies of the records shall be provided
within seventy-two hours.
(b) Copies of records provided to any person or entity
under this subsection (6) shall, if so requested, be provided or
made available on a form adopted under subsection (10) of
this section. Information for treating health care personnel
(2004 Ed.)
49.70.150
shall be made immediately available by telephone, if
requested, with a copy of the records provided within twentyfour hours.
(c) If an employer has reason to suspect that an employee
is ill or injured because of an exposure to one or more pesticides, the employer shall immediately provide the employee
a copy of the relevant pesticide application records.
(7) If a request for a copy of a record is made under this
section and the employer refuses to provide a copy, the
requester may notify the department of the request and the
employer's refusal. Within seven working days, the department shall request that the employer provide the department
with all pertinent copies of the records, except that in a medical emergency the request shall be made within two working
days. The employer shall provide copies of the records to the
department within twenty-four hours after the department's
request.
(8) The department shall include inspection of the
records required under this section as part of any on-site
inspection of a workplace conducted under this chapter or
chapter 49.17 RCW. The inspection shall determine whether
the records are readily transferable to a form adopted by the
department, and readily accessible to employees. However,
no employer subject to a department inspection may be
inspected under this subsection (8) more than once in any calendar year, unless a previous inspection has found recordkeeping violations. If recordkeeping violations are found, the
department may conduct reasonable multiple inspections,
pursuant to rules adopted by the department. Nothing in this
subsection (8) limits the department's inspection of records
pertaining to pesticide-related injuries, illnesses, fatalities,
accidents, or complaints.
(9) If an employer has failed to maintain and preserve the
records or provide access to or copies of the records as
required under this section, the employer shall be subject to
penalties authorized under RCW 49.17.180.
(10) The department of labor and industries and the
department of agriculture shall jointly adopt, by rule, forms
that satisfy the information requirements of this section and
RCW 17.21.100. [1992 c 173 § 3; 1989 c 380 § 77.]
Effective dates—1992 c 173: See note following RCW 17.21.100.
Severability—1989 c 380: See RCW 15.58.942.
49.70.140
49.70.140 Educational brochures and public service
announcements. The department shall produce educational
brochures and public service announcements detailing information available to citizens under this chapter. These educational materials shall be sent to each county health department. As necessary, the department shall provide information
needed to update these educational materials. [1984 c 289 §
20.]
49.70.150
49.70.150 Civil action authorized. A person may
bring a civil action on his or her own behalf against a manufacturer, supplier, employer, or user to compel compliance
with the provisions of this chapter or any rule promulgated
under this chapter subject to the provisions of Title 51 RCW.
The superior court shall have jurisdiction over these actions.
The court may award costs of litigation to the prevailing
[Title 49 RCW—page 79]
49.70.160
Title 49 RCW: Labor Regulations
party, including reasonable attorney and expert witness fees.
[1984 c 289 § 21.]
49.70.160
49.70.160 Request for additional information—Confidentiality. The department may request from an employer
submitting surveys to it further information concerning the
surveys, and the employer shall provide the additional information upon the request. The employer may require the
department to provide reasons why further information is
needed and to sign an agreement protecting the confidentiality of any additional information provided under this section.
[1984 c 289 § 23.]
49.70.165
49.70.165 Trade secret exemptions. (1) The department shall adopt rules in accordance with chapter 34.05
RCW establishing criteria for evaluating the validity of trade
secret claims and procedures for issuing a trade secret exemption. Manufacturers or importers that make a trade secret
claim to the department must notify direct purchasers if a
trade secret claim has been made on a product being offered
for sale.
(2) If a trade secret claim exists, a manufacturer,
importer, or employer may require a written statement of
need or confidentiality agreement before the specific chemical identity of a hazardous substance is released. However, if
a treating physician or nurse determines that a medical emergency exists and the specific chemical identity of a hazardous
substance is necessary for emergency or first aid treatment,
the manufacturer, importer, or employer shall immediately
disclose the specific chemical identity to that treating physician or nurse, regardless of the existence of a written statement of need or a confidentiality agreement. The chemical
manufacturer, importer, or employer may require a written
statement of need and confidentiality agreement, as defined
by rule, as soon as circumstances permit.
(3) Any challenge to the denial of a trade secret claim
shall be heard by an administrative law judge in accordance
with chapter 34.05 RCW. [1985 c 409 § 4.]
49.70.170
49.70.170 Worker and community right to know
fund—Employer assessments—Audits—Appeal of
assessment. (1) The worker and community right to know
fund is hereby established in the custody of the state treasurer. The department shall deposit all moneys received
under this chapter in the fund. Moneys in the fund may be
spent only for the purposes of this chapter following legislative appropriation. Disbursements from the fund shall be on
authorization of the director or the director's designee. During the 2003-2005 fiscal biennium, moneys in the fund may
also be used by the military department for the purpose of
assisting the state emergency response commission and coordinating local emergency planning activities. The fund is
subject to the allotment procedure provided under chapter
43.88 RCW.
(2) The department shall assess each employer who
reported ten thousand four hundred or more worker hours in
the prior calendar year an annual fee to provide for the implementation of this chapter. The department shall promulgate
rules establishing a fee schedule for all employers who
reported ten thousand four hundred or more worker hours in
[Title 49 RCW—page 80]
the prior calendar year and are engaged in business operations having a standard industrial classification, as designated
in the standard industrial classification manual prepared by
the federal office of management and budget, within major
group numbers 01 through 08 (agriculture and forestry industries), numbers 10 through 14 (mining industries), numbers
15 through 17 (construction industries), numbers 20 through
39 (manufacturing industries), numbers 41, 42, and 44
through 49 (transportation, communications, electric, gas,
and sanitary services), number 75 (automotive repair, services, and garages), number 76 (miscellaneous repair services), number 80 (health services), and number 82 (educational services). The department shall establish the annual
fee for each employer who reported ten thousand four hundred or more worker hours in the prior calendar year in industries identified by this section, provided that fees assessed
shall not be more than two dollars and fifty cents per full time
equivalent employee. The annual fee shall not exceed fifty
thousand dollars. The fees shall be collected solely from
employers whose industries have been identified by rule
under this chapter. The department shall promulgate rules
allowing employers who do not have hazardous substances at
their workplace to request an exemption from the assessment
and shall establish penalties for fraudulent exemption
requests. All fees collected by the department pursuant to
this section shall be collected in a cost-efficient manner and
shall be deposited in the fund.
(3) Records required by this chapter shall at all times be
open to the inspection of the director, or his designee including, the traveling auditors, agents or assistants of the department provided for in RCW 51.16.070 and 51.48.040. The
information obtained from employer records under the provisions of this section shall be subject to the same confidentiality requirements as set forth in RCW 51.16.070.
(4) An employer may appeal the assessment of the fee or
penalties pursuant to the procedures set forth in Title 51
RCW and accompanying rules except that the employer shall
not have the right of appeal to superior court as provided in
Title 51 RCW. The employer from whom the fee or penalty
is demanded or enforced, may however, within thirty days of
the board of industrial insurance appeal's final order, pay the
fee or penalty under written protest setting forth all the
grounds upon which such fee or penalty is claimed to be
unlawful, excessive or otherwise improper and thereafter
bring an action in superior court against the department to
recover such fee or penalty or any portion of the fee or penalty which was paid under protest.
(5) Repayment shall be made to the general fund of any
moneys appropriated by law in order to implement this chapter. [2004 c 276 § 911; 2001 2nd sp.s. c 7 § 913; 1999 c 309
§ 917; 1986 c 310 § 1; 1984 c 289 § 24.]
Severability—Effective date—2004 c 276: See notes following RCW
43.330.167.
Severability—Effective date—2001 2nd sp.s. c 7: See notes following RCW 43.320.110.
Severability—Effective date—1999 c 309: See notes following RCW
41.06.152.
49.70.175
49.70.175 Worker and community right to know
fund—Expenditure—Disbursements. Funds in the worker
and community right to know fund established under RCW
(2004 Ed.)
Affirmative Action
49.70.170 may be spent by the department of ecology to
implement RCW 70.102.020 (1) through (3) following legislative appropriation. Disbursements from the fund shall be on
authorization of the director of the department of ecology.
[1985 c 410 § 5.]
49.70.177
49.70.177 Penalties for late payment of fees—Collection of fees and penalties. If payment of any fee assessed
under RCW 49.70.170 is not received by the department by
the due date, there shall be assessed a penalty of five percent
of the amount of the fee. If the fee is not received within thirty
days after the due date, there shall be assessed a total penalty
of ten percent of the amount of the fee. If the fee is not
received within sixty days after the due date, there shall be
assessed a total penalty of twenty percent of the amount of
the fee. No penalty added may be less than ten dollars. If a
warrant is issued by the department for the collection of fees,
penalties, and interest, there shall be an additional penalty of
five percent of the amount of the fee, but not less than five
dollars nor more than one hundred dollars. Warrants shall
earn interest at the rate of one percent per month, or fraction
thereof, from and after the date of entry of the warrant. The
department may utilize the procedures for collection of fees,
penalties, and interest set forth in Title 51 RCW. [1986 c 310
§ 2.]
49.74.005
49.70.200
49.70.200 Adoption of rules. Except as otherwise provided in this chapter, the department, after consultation with
the department of agriculture, shall adopt any rules necessary
to carry out its responsibilities under this chapter. [1984 c
289 § 27.]
49.70.210
49.70.210 Application of chapter to consumer products. (1) It is the intent of the legislature that this chapter
shall not apply to products that are generally made available
to the noncommercial consumer: PROVIDED, That such
"consumer" products used by employees in the workplace are
used in substantially the same manner, form, and concentration as they are used by noncommercial consumers, and that
the product exposure is not substantially greater to the
employee than to the noncommercial consumer during normal and accepted use of that product.
(2) The department shall adopt rules in accordance with
chapter 34.05 RCW to implement this section. This section
shall not affect the department's authority to implement and
enforce the Washington industrial safety and health act, chapter 49.17 RCW, at least as effectively as the federal occupational safety and health act. [1987 c 365 § 1.]
49.70.900
49.70.900 Short title. This chapter shall be known and
may be cited as the "worker and community right to know
act." [1984 c 289 § 1.]
49.70.180
49.70.180 Application of enforcement and administrative procedures of Washington industrial safety and
health act. Unless reference is specifically made to another
chapter, this chapter shall be implemented and enforced
including penalties, violations, citations, and other administrative procedures pursuant to chapter 49.17 RCW. [1984 c
289 § 25.]
49.70.190
49.70.190 Compliance with chapter—Notice—
Fines—Injunctive relief. If a manufacturer, supplier,
employer, or user refuses or fails to provide the department
with any data sheets, workplace surveys, or other papers,
documents, or information required by this chapter, the
department may give written notice to the manufacturer, supplier, employer, or user demanding immediate compliance. If
the manufacturer, supplier, employer, or user fails to begin to
comply with the terms of the notice within fourteen days of
receipt, the department may levy a fine of up to fifty dollars
per affected employee per day, not to exceed five thousand
dollars per day from the final date for compliance allowed by
this section or by the department. In any case where the noncompliance continues for more than fifteen days or where the
department determines the failure to comply creates a potential health or safety hazard to employees or hinders the
department's performance of its duties under this chapter, the
department may, in lieu of levying a fine or further fines,
petition the superior court of Thurston county or the county
where the manufacturer, supplier, employer, or user is
located for an order enjoining the manufacturer, employer,
supplier, or user from further noncompliance and granting
any other remedies that may be appropriate. The court may
award the department costs of litigation, including attorney's
fees, if the department is the prevailing party. [1984 c 289 §
26.]
(2004 Ed.)
49.70.905
49.70.905 Severability—1984 c 289. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1984 c 289 § 30.]
Chapter 49.74
Chapter 49.74 RCW
AFFIRMATIVE ACTION
Sections
49.74.005
49.74.010
49.74.020
49.74.030
49.74.040
49.74.050
Legislative findings—Purpose.
Commission.
Affirmative action rules—Noncompliance—Notification—
Hearing.
Noncompliance—Conciliation—Order.
Failure to reach conciliation agreement—Administrative hearing—Appeal.
Superior court—Remedies.
49.74.005
49.74.005 Legislative findings—Purpose. Discrimination because of race, creed, color, national origin, age, sex,
marital status, or the presence of any sensory, mental, or
physical handicap is contrary to the findings of the legislature
and public policy. The legislature finds and declares that
racial minorities, women, persons in protected age groups,
persons with disabilities, Vietnam-era veterans, and disabled
veterans are underrepresented in Washington state government employment.
The purpose of this chapter is to provide for enforcement
measures for affirmative action within Washington state government employment and institutions of higher education in
order to eliminate such underrepresentation. [1985 c 365 §
7.]
[Title 49 RCW—page 81]
49.74.010
Title 49 RCW: Labor Regulations
49.74.010 Commission. As used in this chapter, "commission" means the Washington state human rights commission. [1985 c 365 § 8.]
49.74.010
49.74.020 Affirmative action rules—Noncompliance—Notification—Hearing. If the commission reasonably believes that a state agency, an institution of higher education, or the state patrol has failed to comply with an affirmative action rule adopted under RCW 41.06.150 or
43.43.340, the commission shall notify the director of the
state agency, president of the institution of higher education,
or chief of the Washington state patrol of the noncompliance,
as well as the director of personnel. The commission shall
give the director of the state agency, president of the institution of higher education, or chief of the Washington state
patrol an opportunity to be heard on the failure to comply.
[1993 c 281 § 57; 1985 c 365 § 9.]
49.74.020
Effective date—1993 c 281: See note following RCW 41.06.022.
49.74.030 Noncompliance—Conciliation—Order.
The commission in conjunction with the department of personnel or the state patrol, whichever is appropriate, shall
attempt to resolve the noncompliance through conciliation. If
an agreement is reached for the elimination of noncompliance, the agreement shall be reduced to writing and an order
shall be issued by the commission setting forth the terms of
the agreement. The noncomplying state agency, institution of
higher education, or state patrol shall make a good faith effort
to conciliate and make a full commitment to correct the noncompliance with any action that may be necessary to achieve
compliance, provided such action is not inconsistent with the
rules adopted under RCW 41.06.150(6) and 43.43.340(5),
whichever is appropriate. [2002 c 354 § 246; 2002 c 354 §
245; 1993 c 281 § 58; 1985 c 365 § 10.]
49.74.030
the noncompliance, the court, in addition to any other penalties and sanctions prescribed by law, shall order the state
agency, institution of higher education, or state patrol to comply with this chapter. The court may require any action
deemed appropriate by the court which is consistent with the
intent of this chapter. [1985 c 365 § 12.]
Chapter 49.78
Chapter 49.78 RCW
FAMILY LEAVE
Sections
49.78.005
49.78.010
49.78.020
49.78.030
49.78.040
49.78.050
49.78.060
49.78.070
49.78.080
49.78.090
49.78.100
49.78.110
49.78.120
49.78.130
49.78.140
49.78.150
49.78.160
49.78.170
49.78.180
49.78.190
49.78.200
49.78.900
49.78.901
Administration and enforcement of this chapter to cease while
federal family and medical leave act provides the same or
more family leave—Rights under RCW 49.78.070(1)(b) preserved—Enforcement.
Legislative findings.
Definitions.
Requirements—Limitation.
Notice to employer.
Requirements for confirmation—Second opinion.
Both parents with same employer.
Employee employment rights—Limitations.
Employee benefits.
Administration.
Additional rights—Remedies.
Collective bargaining agreements—Obligations and rights not
diminished.
Collective bargaining agreements—Application of chapter—
Grievance procedures.
Discrimination prohibited.
Complaint—Contents—Notice—Investigation.
Notice of infraction—Contents.
Notice of infraction—Service.
Notice of infraction—State agencies.
Appeal—Hearings—Decisions—Review—Appeal of final
decision.
Penalties.
Poster required.
Severability—1989 1st ex.s. c 11.
Effective date—1989 1st ex.s. c 11.
49.78.005
Short title—Headings, captions not law—Severability—Effective
dates—2002 c 354: See RCW 41.80.907 through 41.80.910.
Effective date—1993 c 281: See note following RCW 41.06.022.
49.74.040 Failure to reach conciliation agreement—
Administrative hearing—Appeal. If no agreement can be
reached under RCW 49.74.030, the commission may refer
the matter to the administrative law judge for hearing pursuant to RCW 49.60.250. If the administrative law judge finds
that the state agency, institution of higher education, or state
patrol has not made a good faith effort to correct the noncompliance, the administrative law judge shall order the state
agency, institution of higher education, or state patrol to comply with this chapter. The administrative law judge may order
any action that may be necessary to achieve compliance, provided such action is not inconsistent with the rules adopted
under RCW 41.06.150(6) and 43.43.340(5), whichever is
appropriate.
An order by the administrative law judge may be
appealed to superior court. [2002 c 354 § 248; 2002 c 354 §
247; 1985 c 365 § 11.]
49.74.040
Short title—Headings, captions not law—Severability—Effective
dates—2002 c 354: See RCW 41.80.907 through 41.80.910.
49.74.050 Superior court—Remedies. If the superior
court finds that the state agency, institution of higher education, or state patrol has not made a good faith effort to correct
49.74.050
[Title 49 RCW—page 82]
49.78.005 Administration and enforcement of this
chapter to cease while federal family and medical leave
act provides the same or more family leave—Rights
under RCW 49.78.070(1)(b) preserved—Enforcement.
(1) Except as provided in subsection (2) of this section, the
department shall cease to administer and enforce this chapter
beginning on July 27, 1997, and until the earlier of the following dates:
(a) The effective date of the repeal of the federal family
and medical leave act of 1993 (Act Feb. 5, 1993, P.L. 103-3,
107 Stat. 6); or
(b) July 1st of the year following the year in which
amendments to the federal family and medical leave act of
1993 (Act Feb. 5, 1993, P.L. 103-3, 107 Stat. 6) take effect
that provide less family leave than is provided under RCW
49.78.030. In determining whether the federal law provides
the same or more leave, the department shall only consider
whether (i) the total period of leave allowed under the
amended federal law is twelve or more workweeks in a
twenty-four month period, and (ii) the types of leave authorized under the amended federal law are similar to the types
authorized in this chapter.
(2) An employee's right under RCW 49.78.070(1)(b) to
be returned to a workplace within twenty miles of the
employee's workplace when leave commenced shall remain
in effect. The family leave required by U.S.C.
29.2612(a)(1)(A) and (B) of the federal family and medical
(2004 Ed.)
Family Leave
leave act of 1993 (Act Feb. 5, 1993, P.L. 103-3, 107 Stat. 6)
shall be in addition to any leave for sickness or temporary
disability because of pregnancy or childbirth. The department
shall enforce this subsection under RCW 49.78.140 through
49.78.190, except that an initial notice of infraction shall state
that the employer has thirty days in which to take corrective
action. No infraction or penalty may be assessed if the
employer complies with the requirements of the initial notice
of infraction. [1997 c 16 § 1.]
49.78.040
(8) "Reduced leave schedule" means leave scheduled for
fewer than an employee's usual number of hours or days per
workweek.
(9) "Terminal health condition" means a condition
caused by injury, disease, or illness, that, within reasonable
medical judgment, is incurable and will produce death within
the period of leave to which the employee is entitled. [1996
c 178 § 14; 1989 1st ex.s. c 11 § 2.]
Effective date—1996 c 178: See note following RCW 18.35.110.
49.78.010
49.78.010 Legislative findings. The legislature finds
that the demands of the workplace and of families need to be
balanced to promote family stability and economic security.
Changes in workplace leave policies are desirable to accommodate changes in the work force such as rising numbers of
dual-career couples and working single parents. In addition,
given the mobility of American society, many people no
longer have available community or family support networks
and therefore need additional flexibility in the workplace.
The legislature declares it to be in the public interest to provide reasonable family leave upon the birth or adoption of a
child and to care for a child under eighteen years old with a
terminal health condition. [1989 1st ex.s. c 11 § 1.]
49.78.020
49.78.020 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Child" means a biological or adopted child, or a
stepchild, living with the employee.
(2) "Department" means the department of labor and
industries.
(3) "Employee" means a person other than an independent contractor employed by an employer on a continuous
basis for the previous fifty-two weeks for at least thirty-five
hours per week.
(4) "Employer" means: (a) Any person, firm, corporation, partnership, business trust, legal representative, or other
business entity which engages in any business, industry, profession, or activity in this state and includes any unit of local
government including, but not limited to, a county, city,
town, municipal corporation, quasi-municipal corporation, or
political subdivision, which (i) employed a daily average of
one hundred or more employees during the last calendar
quarter at the place where the employee requesting leave
reports for work, or (ii) employed a daily average of one hundred or more employees during the last calendar quarter
within a twenty mile radius of the place where the employee
requesting leave reports for work, where the employer maintains a central hiring location and customarily transfers
employees among workplaces; and (b) the state, state institutions, and state agencies.
(5) "Family leave" means leave from employment to
care for a newborn or newly adopted child under the age of
six or a child under eighteen years old with a terminal health
condition, as provided in RCW 49.78.030.
(6) "Health care provider" means a person licensed as a
physician under chapter 18.71 RCW or an osteopathic physician and surgeon under chapter 18.57 RCW.
(7) "Parent" means a biological or adoptive parent, or a
stepparent.
(2004 Ed.)
49.78.030
49.78.030 Requirements—Limitation. (1) An
employee is entitled to twelve workweeks of family leave
during any twenty-four month period to: (a) Care for a newborn child or adopted child of the employee who is under the
age of six at the time of placement for adoption, or, (b) care
for a child under eighteen years old of the employee who has
a terminal health condition. Leave under subsection (1)(a) of
this section shall be completed within twelve months after the
birth or placement for adoption, as applicable. An employee
is entitled to leave under subsection (1)(b) of this section only
once for any given child.
(2) Family leave may be taken on a reduced leave schedule subject to the approval of the employer.
(3) The leave required by this section may be unpaid. If
an employer provides paid family leave for fewer than twelve
workweeks, the additional workweeks of leave added to
attain the twelve-workweek total may be unpaid. An
employer may require an employee to first use up the
employee's total accumulation of leave to which the
employee is otherwise entitled before going on family leave;
however, except as provided in subsection (4) of this section,
nothing in this section requires more than twelve total workweeks of leave during any twenty-four month period. An
employer is not required to allow an employee to use the
employee's other leave in place of the leave provided under
this chapter.
(4) The leave required by this section is in addition to
any leave for sickness or temporary disability because of
pregnancy or childbirth.
(5) An employer may limit or deny family leave to
either: (a) Up to ten percent of the employer's workforce in
the state designated as key personnel by the employer. Any
designation made under this section shall take effect thirty
days after it is issued and may be changed no more than once
in any twelve-month period. An employer shall not designate
key personnel on the basis of age or gender or for the purpose
of evading the requirements of this chapter. No employee
may be designated as key personnel after giving notice of
intent to take leave pursuant to RCW 49.78.040. The designation shall be in writing and shall be displayed in a conspicuous place; or (b) if the employer does not designate key personnel, the highest paid ten percent of the employer's
employees in the state. [1989 1st ex.s. c 11 § 3.]
49.78.040
49.78.040 Notice to employer. (1) An employee planning to take family leave under RCW 49.78.030(1)(a) shall
provide the employer with written notice at least thirty days
in advance of the anticipated date of delivery or placement
for adoption, stating the dates during which the employee
[Title 49 RCW—page 83]
49.78.050
Title 49 RCW: Labor Regulations
intends to take family leave. The employee shall adhere to the
dates stated in the notice unless:
(a) The birth is premature;
(b) The mother is incapacitated due to birth such that she
is unable to care for the child;
(c) The employee takes physical custody of the newly
adopted child at an unanticipated time and is unable to give
notice thirty days in advance; or
(d) The employer and employee agree to alter the dates
of family leave stated in the notice.
(2) In cases of premature birth, incapacity, or unanticipated placement for adoption referred to in subsection (1) of
this section, the employee must give notice of revised dates
of family leave as soon as possible but at least within one
working day of the birth or placement for adoption or incapacitation of the mother.
(3) If family leave under RCW 49.78.030(1)(b) is foreseeable, the employee shall provide the employer with written notice at least fourteen days in advance of the expected
leave and shall make a reasonable effort to schedule the leave
so as not to unduly disrupt the operations of the employer. If
family leave under RCW 49.78.030(1)(b) is not foreseeable
fourteen or more days before the leave is to take place, the
employee shall notify the employer of the expected leave as
soon as possible, but at least within one working day of the
beginning of the leave.
(4) If the employee fails to give the notice required by
this section, the employer may reduce or increase the family
leave required by this chapter by three weeks. [1989 1st ex.s.
c 11 § 4.]
49.78.050
49.78.050 Requirements for confirmation—Second
opinion. (1) In the event of any dispute under this chapter
regarding premature birth, incapacitation of the mother,
maternity disability, or terminal condition of a child, an
employer may require confirmation by a health care provider
of: (a) The date of the birth; (b) the date on which incapacity
because of childbirth or disability because of pregnancy or
childbirth commenced or will probably commence, and its
probable duration; or (c) for family leave under RCW
49.78.030(1)(b), the fact that the child has a terminal health
condition.
(2) An employer may require, at the employer's expense,
that the employee obtain the opinion of a second health care
provider selected by the employer concerning any information required under subsection (1) of this section. If the health
care providers disagree on any factor which is determinative
of the employee's eligibility for family leave, the two health
care providers shall select a third health care provider, whose
opinion, obtained at the employer's expense, shall be conclusive. [1989 1st ex.s. c 11 § 5.]
49.78.060
49.78.060 Both parents with same employer. If both
parents of a child are employed by the same employer, they
shall together be entitled to a total of twelve workweeks of
family leave during any twenty-four month period, and leave
need be granted to only one parent at a time. [1989 1st ex.s.
c 11 § 6.]
[Title 49 RCW—page 84]
49.78.070
49.78.070 Employee employment rights—Limitations. (1) Subject to subsection (2) of this section, an
employee who exercises any right provided under RCW
49.78.030 shall be entitled, upon return from leave or during
any reduced leave schedule:
(a) To the same position held by the employee when the
leave commenced; or
(b) To a position with equivalent benefits and pay at a
workplace within twenty miles of the employee's workplace
when leave commenced; or
(c) If the employer's circumstances have so changed that
the employee cannot be reinstated to the same position, or a
position of equivalent pay and benefits, the employee shall be
reinstated in any other position which is vacant and for which
the employee is qualified.
(2) The entitlement under subsection (1) of this section is
subject to bona fide changes in compensation or work duties,
and does not apply if:
(a) The employee's position is eliminated by a bona fide
restructuring, or reduction-in-force;
(b) The employee's workplace is permanently or temporarily shut down for at least thirty days;
(c) The employee's workplace is moved to a location at
least sixty miles from the location of the workplace when
leave commenced;
(d) An employee on family leave takes another job; or
(e) The employee fails to provide timely notice of family
leave as required under RCW 49.78.040, or fails to return on
the established ending date of leave. [1989 1st ex.s. c 11 § 7.]
49.78.080
49.78.080 Employee benefits. (1) The taking of leave
under this chapter shall not result in the loss of any benefit,
including seniority or pension rights, accrued before the date
on which the leave commenced.
(2) Nothing in this chapter shall be construed to require
the employer to grant benefits, including seniority or pension
rights, during any period of leave.
(3) All policies applied during the period of leave to the
classification of employees to which the employee on leave
belongs shall apply to the employee on leave.
(4) During any period of leave taken under RCW
49.78.030, if the employee is not eligible for any employer
contribution to medical or dental benefits under an applicable
collective bargaining agreement or employer policy during
any period of leave, an employer shall allow the employee to
continue, at his or her own expense, medical or dental insurance coverage, including any spouse and dependent coverage, in accordance with state or federal law. The premium to
be paid by the employee shall not exceed one hundred two
percent of the applicable premium for the leave period.
[1989 1st ex.s. c 11 § 8.]
49.78.090
49.78.090 Administration. The department of labor
and industries shall administer the provisions of this chapter.
[1989 1st ex.s. c 11 § 9.]
49.78.100
49.78.100 Additional rights—Remedies. (1) Except
as provided in this chapter, the rights under this chapter are in
addition to any other rights provided by law. The remedies
under this chapter shall be exclusive.
(2004 Ed.)
Family Leave
(2) Nothing in this chapter shall be construed to discourage employers from adopting policies which provide greater
leave rights to employees than those required by this chapter.
[1989 1st ex.s. c 11 § 10.]
49.78.110
49.78.110 Collective bargaining agreements—Obligations and rights not diminished. (1) Nothing in this
chapter shall be construed to diminish an employer's obligation to comply with any collective bargaining agreement or
any employment benefit program or plan which provides
greater leave rights to employees than the rights provided
under this chapter.
(2) The rights provided to employees under this chapter
may not be diminished by any collective bargaining agreement or any employment benefit program or plan entered into
or renewed after September 1, 1989. [1989 1st ex.s. c 11 §
11.]
49.78.120
49.78.120 Collective bargaining agreements—Application of chapter—Grievance procedures. (1) In the case
of employees covered by an unexpired collective bargaining
agreement that expires on or after September 1, 1989, or by
an employee benefit program or plan with a stated year ending on or after September 1, 1989, the effective date of this
chapter shall be the later of: (a) The first day following expiration of the collective bargaining agreement; or (b) the first
day of the next plan year.
(2) Notwithstanding the provisions of RCW 49.78.140
through *49.78.210, where this chapter has been incorporated into a collective bargaining agreement, the grievance
procedures contained in the respective collective bargaining
agreement shall be used to resolve complaints related to this
chapter. [1989 1st ex.s. c 11 § 12.]
*Reviser's note: RCW 49.78.210 was repealed by 1993 c 450 § 1.
49.78.180
that a violation of this chapter has occurred, it may issue a
notice of infraction. [1989 1st ex.s. c 11 § 14.]
49.78.150
49.78.150 Notice of infraction—Contents. The
department may issue a notice of infraction to an employer
who violates this chapter. The employment standards supervisor shall direct that notices of infraction contain the following when issued:
(1) A statement that the notice represents a determination
that the infraction has been committed by the employer
named in the notice and that the determination shall be final
unless contested;
(2) A statement that the infraction is a noncriminal
offense for which imprisonment shall not be imposed as a
sanction;
(3) A statement of the specific violation which necessitated issuance of the infraction;
(4) A statement of the penalty involved if the infraction
is established;
(5) A statement informing the employer of the right to a
hearing conducted pursuant to chapter 34.05 RCW if
requested within twenty days of issuance of the infraction;
(6) A statement that at any hearing to contest the notice
of infraction the state has the burden of proving, by a preponderance of the evidence, that the infraction was committed,
and that the employer may subpoena witnesses including the
agent that issued the notice of infraction;
(7) If a notice of infraction is personally served upon a
supervisory or managerial employee of a firm or corporation,
the department shall within seventy-two hours of service
send a copy of the notice by certified mail to the employer;
(8) Constructive service may be made by certified mail
directed to the employer named in the notice of infraction.
[1989 1st ex.s. c 11 § 15.]
49.78.160
49.78.130
49.78.130 Discrimination prohibited. No employer,
employment agency, labor union, or other person shall discharge, expel, or otherwise discriminate against any person
because he or she has opposed any practices forbidden by this
chapter, or because he or she has filed a complaint, testified,
or assisted in any proceeding under this chapter. [1989 1st
ex.s. c 11 § 13.]
49.78.140
49.78.140 Complaint—Contents—Notice—Investigation. (1) An employee who believes that his or her
employer has violated any provision of this chapter may file
a complaint with the department within ninety days of the
alleged violation. The complaint shall contain the following:
(a) The name and address of the employee making the
complaint;
(b) The name, address, and telephone number of the
employer against whom the complaint is made;
(c) A statement of the specific facts which constitute the
alleged violation, including the date(s) on which the alleged
violation occurred.
(2) Upon receipt of a complaint, the department shall forward written notice of the complaint to the employer.
(3) The department may investigate any complaint filed
within the required time frame. If the department determines
(2004 Ed.)
49.78.160 Notice of infraction—Service. (1) If an
employer is a corporation or a partnership, the department
need not serve the employer personally. In such a case, if no
officer or partner of a violating employer is present, the
department may issue a notice of infraction to any managerial
employee.
(2) If the department serves a notice of infraction on a
managerial employee, and not on an officer, or partner of the
employer, the department shall mail by certified mail a copy
of the notice of infraction to the employer. The department
shall mail a second copy by ordinary mail. [1989 1st ex.s. c
11 § 16.]
49.78.170
49.78.170 Notice of infraction—State agencies. In
any case in which the department shall issue an order against
any political or civil subdivision of the state, or any agency,
or instrumentality of the state or of the foregoing, or any
officer or employee thereof, the department shall transmit a
copy of such order to the governor of the state. The governor
shall take such action to secure compliance with such order as
the governor deems necessary. [1989 1st ex.s. c 11 § 17.]
49.78.180
49.78.180 Appeal—Hearings—Decisions—Review—
Appeal of final decision. (1) If an employer desires to contest the notice of infraction issued, the employer shall file two
[Title 49 RCW—page 85]
49.78.190
Title 49 RCW: Labor Regulations
copies of a notice of appeal with the department at the office
designated on the notice of infraction, within twenty days of
issuance of the infraction.
(2) The department shall conduct a hearing in accordance with chapter 34.05 RCW.
(3) Employers may appear before the administrative law
judge through counsel, or may represent themselves. The
department shall be represented by the attorney general.
(4) Admission of evidence is subject to RCW 34.05.452
and 34.05.446.
(5) The administrative law judge shall issue a proposed
decision that includes findings of fact, conclusions of law,
and if appropriate, any legal penalty. The proposed decision
shall be served by certified mail or personally on the
employer and the department. The employer or department
may appeal to the director within thirty days after the date of
issuance of the proposed decision. If none of the parties
appeals within thirty days, the proposed decision may not be
appealed either to the director or the courts.
(6) An appellant must file with the director an original
and four copies of its notice of appeal. The notice of appeal
must specify which findings and conclusions are erroneous.
The appellant must attach to the notice the written arguments
supporting its appeal.
The appellant must serve a copy of the notice of appeal
and the arguments on the other parties. The respondent parties must file with the director their written arguments within
thirty days after the date the notice of appeal and the arguments were served upon them.
(7) The director shall review the proposed decision in
accordance with the administrative procedure act, chapter
34.05 RCW. The director may: Allow the parties to present
oral arguments as well as the written arguments; require the
parties to specify the portions of the record on which the parties rely; require the parties to submit additional information
by affidavit or certificate; remand the matter to the administrative law judge for further proceedings; and require a
departmental employee to prepare a summary of the record
for the director to review. The director shall issue a final decision that can affirm, modify, or reverse the proposed decision.
(8) The director shall serve the final decision on all parties. Any aggrieved party may appeal the final decision to
superior court pursuant to RCW 34.05.570 unless the final
decision affirms an unappealed proposed decision. If no party
appeals within the period set by RCW 34.05.570, the director's decision is conclusive and binding on all parties. [1989
1st ex.s. c 11 § 18.]
49.78.200 Poster required. The department shall
develop and furnish to each employer a poster which
describes an employer's obligations and an employee's rights
under this chapter. The poster must include notice about any
state law, rule, or regulation governing maternity disability
leave and indicate that federal or local ordinances, laws, rules
or regulations may also apply. The poster must also include a
telephone number and an address of the department to enable
employees to obtain more information regarding this chapter.
Each employer must display this poster in a conspicuous
place. Nothing in this section shall be construed to create a
right to continued employment. [1989 1st ex.s. c 11 § 20.]
49.78.200
49.78.900 Severability—1989 1st ex.s. c 11. If any
provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances
is not affected. [1989 1st ex.s. c 11 § 25.]
49.78.900
49.78.901 Effective date—1989 1st ex.s. c 11. This act
shall take effect September 1, 1989. [1989 1st ex.s. c 11 §
27.]
49.78.901
49.78.190
49.78.190 Penalties. An employer found to have committed an infraction under this chapter may be subject to a
fine of up to two hundred dollars for the first infraction. An
employer that continues to violate the statute may be subject
to a fine of up to one thousand dollars for each infraction. An
employer found to have failed to reinstate an employee as
required under RCW 49.78.070 may also be ordered to reinstate the employee, with or without back pay. [1989 1st ex.s.
c 11 § 19.]
[Title 49 RCW—page 86]
(2004 Ed.)
Title 50
Chapters
50.01
50.04
50.06
50.08
50.12
50.13
50.16
50.20
50.22
50.24
50.29
50.32
50.36
50.38
50.40
50.44
50.50
50.60
50.62
50.65
50.70
50.72
50.98
Title 50
UNEMPLOYMENT COMPENSATION
General provisions.
Definitions.
Temporary total disability.
Establishment of department.
Administration.
Records and information—Privacy and confidentiality.
Funds.
Benefits and claims.
Extended and additional benefits.
Contributions by employers.
Employer experience rating.
Review, hearings, and appeals.
Penalties.
Labor market information and economic analysis.
Miscellaneous provisions.
Special coverage provisions.
Indian tribes.
Shared work compensation plans—Benefits.
Special employment assistance.
Washington service corps.
Programs for dislocated forest products workers.
Youthbuild program.
Construction.
Bringing in out-of-state persons to replace employees involved in labor dispute—Penalty: RCW 49.44.100.
Displaced homemaker act: Chapter 28B.04 RCW.
Industrial insurance: Title 51 RCW.
Job skills training program: RCW 28C.04.400 through 28C.04.420.
Unfair practices of employment agencies: RCW 49.60.200.
Chapter 50.01
Chapter 50.01 RCW
GENERAL PROVISIONS
Sections
50.01.005
50.01.010
50.01.005 Short title. This title shall be known and
may be cited as the "Employment Security Act." [1953 ex.s.
c 8 § 24; 1945 c 35 § 1; Rem. Supp. 1945 § 9998-140.]
50.01.010 Preamble. Whereas, economic insecurity
due to unemployment is a serious menace to the health, morals and welfare of the people of this state; involuntary unemployment is, therefore, a subject of general interest and concern which requires appropriate action by the legislature to
prevent its spread and to lighten its burden which now so
often falls with crushing force upon the unemployed worker
and his family. Social security requires protection against
this greatest hazard of our economic life. This can be provided only by application of the insurance principle of shar(2004 Ed.)
Conflict with federal requirements—2003 2nd sp.s. c 4: "If any part
of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is inoperative solely to the extent of the conflict, and
the finding or determination does not affect the operation of the remainder of
this act. Rules adopted under this act must meet federal requirements that are
a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state." [2003
2nd sp.s. c 4 § 36.]
Severability—2003 2nd sp.s. c 4: "If any provision of this act or its
application to any person or circumstance is held invalid, the remainder of
the act or the application of the provision to other persons or circumstances
is not affected." [2003 2nd sp.s. c 4 § 37.]
Effective date—2003 2nd sp.s. c 4: "This act is necessary for the
immediate preservation of the public peace, health, or safety, or support of
the state government and its existing public institutions, and takes effect
immediately [June 20, 2003]." [2003 2nd sp.s. c 4 § 39.]
Chapter 50.04
Chapter 50.04 RCW
DEFINITIONS
Sections
Short title.
Preamble.
50.01.005
50.01.010
ing the risks, and by the systematic accumulation of funds
during periods of employment to provide benefits for periods
of unemployment, thus maintaining purchasing powers and
limiting the serious social consequences of relief assistance.
The state of Washington, therefore, exercising herein its
police and sovereign power endeavors by this title to remedy
any widespread unemployment situation which may occur
and to set up safeguards to prevent its recurrence in the years
to come. The legislature, therefore, declares that in its considered judgment the public good, and the general welfare of
the citizens of this state require the enactment of this measure, under the police powers of the state, for the compulsory
setting aside of unemployment reserves to be used for the
benefit of persons unemployed through no fault of their own.
[2003 2nd sp.s. c 4 § 1; 1945 c 35 § 2; Rem. Supp. 1945 §
9998-141. Prior: 1937 c 162 § 2.]
50.04.020
50.04.030
50.04.040
50.04.050
50.04.060
50.04.070
50.04.072
50.04.073
50.04.075
50.04.080
50.04.090
50.04.100
50.04.110
50.04.115
50.04.116
50.04.120
50.04.125
50.04.140
Base year—Alternative base year.
Benefit year.
Benefits.
Calendar quarter.
Commissioner.
Contributions.
Contributions—"Contributions" and "payments in lieu of contributions" as money payments and taxes due state.
Contributions—As including "payments in lieu of contributions"—Scope.
Dislocated worker.
Employer.
Employing unit.
Employment.
Employment—Situs of service.
Employment—Out-of-state service, election.
Employment—Out-of-state service, when included—"American employer" defined.
Employment—Localized service.
Employment—Foreign degree-granting institutions—
Employee services localized in country of domicile.
Employment—Exception tests.
[Title 50 RCW—page 1]
50.04.020
50.04.145
50.04.148
50.04.150
50.04.155
50.04.160
50.04.165
50.04.170
50.04.180
50.04.205
50.04.206
50.04.210
50.04.220
50.04.223
50.04.225
50.04.230
50.04.232
50.04.235
50.04.240
50.04.245
50.04.255
50.04.265
50.04.270
50.04.280
50.04.290
50.04.293
50.04.294
50.04.295
50.04.300
50.04.310
50.04.320
50.04.323
50.04.330
50.04.335
50.04.340
50.04.350
50.04.355
50.04.360
Title 50 RCW: Unemployment Compensation
Employment—Services performed for contractor, when
excluded.
Employment—Services performed by musician or entertainer.
Employment—Agricultural labor.
Service performed in agricultural labor for farm operator or
crew leader.
Employment—Domestic service.
Employment—Corporate officers—Election of coverage.
Employment—Maritime service.
Family employment.
Services performed by aliens.
Employment—Nonresident alien.
Employment—Foreign governmental service.
Employment—Service covered by federal act.
Employment—Massage practitioner.
Employment—Barber and cosmetology services.
Employment—Services of insurance agent, broker, or solicitor, real estate broker or real estate salesman, and investment
company agent or solicitor.
Employment—Travel services.
Employment—Outside salesman paid by commission.
Employment—Newsboy's service.
Employment—Services performed for temporary services
agency, employee leasing agency, or services referral
agency.
Employment—Appraisal practitioner services.
Employment—Indian tribes.
Employment—Casual labor.
Employment—"Pay period" determination.
Employment office.
Misconduct.
Misconduct—Gross misconduct.
Payments in lieu of contributions.
State.
Unemployed individual—Individual deemed not "unemployed."
Wages, remuneration.
Wages, remuneration—Government or private retirement pension plan payments—Effect upon eligibility—Reduction in
benefits.
Wages, remuneration—Retirement and disability payments
excepted.
Wages, remuneration—Stock transfers excepted.
Wages, remuneration—Death benefits excepted.
Wages, remuneration—Excepted payments.
Wages, remuneration—Average annual wage—Average
weekly wage—Average annual wage for contributions purposes.
Week.
"Application for initial determination" defined: RCW 50.20.140.
"Claim for benefits" defined: RCW 50.20.140.
"Claim for waiting period" defined: RCW 50.20.140.
50.04.020 Base year—Alternative base year. "Base
year" with respect to each individual, shall mean either the
first four of the last five completed calendar quarters or the
last four completed calendar quarters immediately preceding
the first day of the individual's benefit year.
For the purposes of establishing a benefit year, the
department shall initially use the first four of the last five
completed calendar quarters as the base year. If a benefit year
is not established using the first four of the last five calendar
quarters as the base year, the department shall use the last
four completed calendar quarters as the base year.
Computations using the last four completed calendar
quarters shall be based on available wage items processed as
of the close of business on the day preceding the date of
application. The department shall promptly contact employers to request assistance in obtaining wage information for
the last completed calendar quarter if it has not been reported
at the time of initial application. [1994 c 3 § 1; 1987 c 278 §
1; 1970 ex.s. c 2 § 1; 1945 c 35 § 3; Rem. Supp. 1945 § 9998142. Prior: 1943 c 127 § 13; 1939 c 214 § 19; 1937 c 162 §
19.]
50.04.020
[Title 50 RCW—page 2]
Conflict with federal requirements—1994 c 3: "If any part of this act
is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1994 c 3 § 4.]
Severability—1994 c 3: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1994 c 3 § 5.]
Effective dates—1994 c 3: "(1) Section 1 of this act is necessary for the
immediate preservation of the public peace, health, or safety, or support of
the state government and its existing public institutions, and shall take effect
April 3, 1994.
(2) Section 2 of this act is necessary for the immediate preservation of
the public peace, health, or safety, or support of the state government and its
existing public institutions, and shall take effect April 1, 1994.
(3) Section 3 of this act is necessary for the immediate preservation of
the public peace, health, or safety, or support of the state government and its
existing public institutions, and shall take effect immediately [February 26,
1994]." [1994 c 3 § 6.]
Effective date—1970 ex.s. c 2: "This act is necessary for the immediate
preservation of the public peace, health, and safety, the support of the state
government and its existing public institutions, and shall take effect April 5,
1970: PROVIDED, That sections 3 and 8 of this 1970 amendatory act shall
not take effect until January 1, 1971." [1970 ex.s. c 2 § 25.]
50.04.030
50.04.030 Benefit year. "Benefit year" with respect to
each individual, means the fifty-two consecutive week period
beginning with the first day of the calendar week in which the
individual files an application for an initial determination and
thereafter the fifty-two consecutive week period beginning
with the first day of the calendar week in which the individual
next files an application for an initial determination after the
expiration of the individual's last preceding benefit year:
PROVIDED, HOWEVER, That the foregoing limitation
shall not be deemed to preclude the establishment of a new
benefit year under the laws of another state pursuant to any
agreement providing for the interstate combining of employment and wages and the interstate payment of benefits nor
shall this limitation be deemed to preclude the commissioner
from backdating an initial application at the request of the
claimant either for the convenience of the department of
employment security or for any other reason deemed by the
commissioner to be good cause.
An individual's benefit year shall be extended to be fiftythree weeks when at the expiration of fifty-two weeks the
establishment of a new benefit year would result in the use of
a quarter of wages in the new base year that had been
included in the individual's prior base year.
No benefit year will be established unless it is determined that the individual earned wages in "employment" in
not less than six hundred eighty hours of the individual's base
year: PROVIDED, HOWEVER, That a benefit year cannot
be established if the base year wages include wages earned
prior to the establishment of a prior benefit year unless the
individual worked and earned wages since the last separation
from employment immediately before the application for initial determination in the previous benefit year if the applicant
was an unemployed individual at the time of application, or
since the initial separation in the previous benefit year if the
applicant was not an unemployed individual at the time of fil(2004 Ed.)
Definitions
ing an application for initial determination for the previous
benefit year, of not less than six times the weekly benefit
amount computed for the individual's new benefit year.
If an individual's prior benefit year was based on the last
four completed calendar quarters, a new benefit year shall not
be established until the new base year does not include any
hours used in the establishment of the prior benefit year.
If the wages of an individual are not based upon a fixed
duration of time or if the individual's wages are paid at irregular intervals or in such manner as not to extend regularly
over the period of employment, the wages for any week shall
be determined in such manner as the commissioner may by
regulation prescribe. Such regulation shall, so far as possible,
secure results reasonably similar to those which would prevail if the individual were paid his or her wages at regular
intervals. [1991 c 117 § 1; 1990 c 245 § 1. Prior: 1987 c 278
§ 2; 1987 c 256 § 1; 1977 ex.s. c 33 § 1; 1973 c 73 § 1; 1970
ex.s. c 2 § 2; 1949 c 214 § 1; 1945 c 35 § 4; Rem. Supp. 1949
§ 9998-143; prior: 1943 c 127 § 13; 1939 c 214 § 19; 1937 c
162 § 19.]
Conflict with federal requirements—1991 c 117: "If any part of this
act is found to be in conflict with federal requirements which are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1991 c 117 § 5.]
Severability—1991 c 117: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1991 c 117 § 6.]
Effective dates—1991 c 117: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and sections 1 and 4 [of this act]
shall take effect July 1, 1991, and section 3 [of this act] shall take effect July
7, 1991, for new claims filed on or after July 7, 1991." [1991 c 117 § 7.]
Conflict with federal requirements—1990 c 245: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1990 c 245 § 11.]
Effective dates—1990 c 245: "(1) Section 1 of this act is necessary for
the immediate preservation of the public peace, health, or safety, or support
of the state government and its existing public institutions, and shall take
effect immediately [March 28, 1990].
(2) Sections 2, 3, and 6 through 9 of this act shall take effect on July 1,
1990." [1990 c 245 § 12.]
Effective dates—Construction—1977 ex.s. c 33: "The provisions of
this 1977 amendatory act are necessary for the immediate preservation of the
public peace, health and safety, the support of the state government and its
existing public institutions and shall take effect ninety days after adjournment sine die of the 1977 Extraordinary Session (forty-fifth legislature) of
the Washington State Legislature: PROVIDED, That the first paragraph of
section 1 of this 1977 amendatory act shall take effect immediately and the
remaining portion of section 1 of this 1977 amendatory act and all of section
2 of this 1977 amendatory act shall take effect commencing with benefit
years beginning on and after October 1, 1978; section 7 of this 1977 amendatory act shall take effect commencing with benefit years beginning on and
after July 3, 1977." [1977 ex.s. c 33 § 11.]
Effective dates—1973 c 73: "Sections 7, 8, 10, 11, and 12 of this 1973
amendatory act are necessary for the immediate preservation of the public
(2004 Ed.)
50.04.072
peace, health and safety, the support of the state government and its existing
public institutions, and shall take effect immediately [March 8, 1973]. Sections 1, 2, 3, 4, 5, 6, and 9 of this 1973 amendatory act shall take effect on
July 1, 1973." [1973 c 73 § 13.]
Effective date—1970 ex.s. c 2: See note following RCW 50.04.020.
50.04.040
50.04.040 Benefits. "Benefits" means the compensation payable to an individual, as provided in this title, with
respect to his unemployment. [1945 c 35 § 5; Rem. Supp.
1945 § 9998-144. Prior: 1943 c 127 § 13; 1941 c 253 § 14;
1939 c 219 § 19; 1937 c 162 § 19.]
50.04.050
50.04.050 Calendar quarter. "Calendar quarter"
means the period of three consecutive calendar months ending on March 31st, June 30th, September 30th, or December
31st. [1945 c 35 § 6; Rem. Supp. 1945 § 9998-145. Prior:
1943 c 127 § 13; 1939 c 214 § 19; 1937 c 162 § 19.]
50.04.060
50.04.060 Commissioner. "Commissioner" means the
administrative head of the state employment security department referred to in this title. [1947 c 215 § 1; 1945 c 35 § 7;
Rem. Supp. 1947 § 9998-146. Prior: 1943 c 127 § 13; 1941
c 253 § 14; 1939 c 214 § 19; 1937 c 162 § 19.]
50.04.070
50.04.070 Contributions. "Contributions" means the
money payments due to the state unemployment compensation fund as provided in RCW 50.24.010, to the federal interest payment fund under RCW 50.16.070, or to the special
account in the administrative contingency fund under RCW
50.24.014. [1985 ex.s. c 5 § 4; 1983 1st ex.s. c 13 § 9; 1971
c 3 § 1; 1951 c 215 § 1; 1945 c 35 § 8; Rem. Supp. 1945 §
9998-147. Prior: 1943 c 127 § 13; 1941 c 253 § 14; 1939 c
214 § 19; 1937 c 162 § 19.]
Conflict with federal requirements—Severability—1985 ex.s. c 5:
See notes following RCW 50.62.010.
Conflict with federal requirements—1983 1st ex.s. c 13: See note
following RCW 50.16.010.
Construction—Compliance with federal act—1971 c 3: See RCW
50.44.080.
50.04.072
50.04.072 Contributions—"Contributions" and
"payments in lieu of contributions" as money payments
and taxes due state. The terms "contributions" and "payments in lieu of contributions" used in this title, whether singular or plural, designate the money payments to be made to
the state unemployment compensation fund, to the federal
interest payment fund under RCW 50.16.070, or to the special account in the administrative contingency fund under
RCW 50.24.014 and are deemed to be taxes due to the state
of Washington. [1985 ex.s. c 5 § 5; 1983 1st ex.s. c 13 § 10;
1971 c 3 § 3; 1959 c 266 § 8.]
Conflict with federal requirements—Severability—1985 ex.s. c 5:
See notes following RCW 50.62.010.
Conflict with federal requirements—1983 1st ex.s. c 13: See note
following RCW 50.16.010.
Construction—Compliance with federal act—1971 c 3: See RCW
50.44.080.
Construction—1959 c 266: "The provisions of section 8 of this amendatory act shall be construed as a restatement and continuation of existing
law, and not as a new enactment. It shall not be construed as affecting any
existing right acquired under its provisions nor as affecting any proceeding
instituted thereunder." [1959 c 266 § 9.]
[Title 50 RCW—page 3]
50.04.073
Title 50 RCW: Unemployment Compensation
50.04.073
50.04.073 Contributions—As including "payments
in lieu of contributions"—Scope. The term "contributions"
as used in this title shall be deemed to include "payments in
lieu of contributions" to the extent that such usage is consistent with the purposes of this title. Such construction shall
include but not be limited to those portions of this title dealing with assessments, interest, penalties, liens, collection procedures and remedies, administrative and judicial review, and
the imposition of administrative, civil and criminal sanctions.
[1983 1st ex.s. c 23 § 1; 1971 c 3 § 4.]
Conflict with federal requirements—1983 1st ex.s. c 23: "If any part
of this act is found to be in conflict with federal requirements which are a
prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the
conflicting part of this act is hereby declared to be inoperative solely to the
extent of the conflict, and such finding or determination shall not affect the
operation of the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal
funds by the state or the granting of federal unemployment tax credits to
employers in this state." [1983 1st ex.s. c 23 § 26.]
Effective dates—Construction—1983 1st ex.s. c 23: "(1) Sections 6,
8, 17, 18, 19, and 25 of this act are necessary for the immediate preservation
of the public peace, health, and safety, the support of the state government
and its existing institutions, and shall take effect as follows:
(a) Sections 17, 18, 19, and 25 of this act shall take effect on June 30,
1983;
(b) Sections 6 and 8 of this act shall take effect on July 3, 1983, and
shall be effective for benefit years commencing on or after that date.
(2) Sections 4 and 13 of this act shall take effect on October 1, 1983.
Sections 7, 11, and 12 of this act shall also take effect on October 1, 1983,
and shall be effective for all weeks of benefits paid on or after that date."
[1983 1st ex.s. c 23 § 27.]
Construction—Compliance with federal act—1971 c 3: See RCW
50.44.080.
state or the granting of federal unemployment tax credits to employers in this
state." [1985 c 41 § 2.]
Severability—1985 c 41: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1985 c 41 § 3.]
Construction—Compliance with federal act—1971 c 3: See RCW
50.44.080.
50.04.090
50.04.090 Employing unit. "Employing unit" means
any individual or any type of organization, including any
partnership, association, trust, estate, joint stock company,
insurance company, or corporation, whether domestic or foreign, or the receiver, trustee in bankruptcy, trustee or successor thereof, or the legal representative of a deceased person,
which has or subsequent to January 1, 1937, had in its employ
or in its "employment" one or more individuals performing
services within this state. The state and its political subdivisions shall be deemed employing units as to any transactions
occurring on or after September 21, 1977 which would render
an employing unit liable for contributions, interest, or penalties under RCW 50.24.130. "Employing unit" includes Indian
tribes as defined in RCW 50.50.010. [2001 1st sp.s. c 11 § 1;
1983 1st ex.s. c 23 § 2; 1977 ex.s. c 73 § 1; 1947 c 215 § 2;
1945 c 35 § 10; Rem. Supp. 1947 § 9998-149. Prior: 1943 c
127 § 13; 1941 c 253 § 14; 1939 c 214 § 19; 1937 c 162 § 19.]
Conflict with federal requirements—Severability—Effective date—
Retroactive application—2001 1st sp.s. c 11: See RCW 50.50.900 through
50.50.903.
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
50.04.075
50.04.075 Dislocated worker. "Dislocated worker"
means any individual who:
(1) Has been terminated or received a notice of termination from employment;
(2) Is eligible for or has exhausted entitlement to unemployment compensation benefits; and
(3) Is unlikely to return to employment in the individual's
principal occupation or previous industry because of a diminishing demand for their skills in that occupation or industry.
[1984 c 181 § 1.]
Dislocated worker's eligibility for benefits: RCW 50.20.043.
50.04.080
50.04.080 Employer. "Employer" means any individual or type of organization, including any partnership, association, trust, estate, joint stock company, insurance company,
or corporation, whether domestic or foreign, or the receiver,
trustee in bankruptcy, trustee, or the legal representative of a
deceased person, having any person in employment or, having become an employer, has not ceased to be an employer as
provided in this title. [1985 c 41 § 1; 1971 c 3 § 5; 1949 c 214
§ 2; 1945 c 35 § 9; Rem. Supp. 1949 § 9998-148. Prior: 1943
c 127 § 13; 1941 c 253 § 14; 1939 c 214 § 19; 1937 c 162 §
19.]
Conflict with federal requirements—1985 c 41: "If any part of this
act is found to be in conflict with federal requirements which are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the
[Title 50 RCW—page 4]
50.04.100
50.04.100 Employment. "Employment", subject only
to the other provisions of this title, means personal service, of
whatever nature, unlimited by the relationship of master and
servant as known to the common law or any other legal relationship, including service in interstate commerce, performed
for wages or under any contract calling for the performance
of personal services, written or oral, express or implied.
Except as provided by RCW 50.04.145, personal services performed for an employing unit by one or more contractors or subcontractors acting individually or as a partnership, which do not meet the provisions of RCW 50.04.140,
shall be considered employment of the employing unit:
PROVIDED, HOWEVER, That such contractor or subcontractor shall be an employer under the provisions of this title
in respect to personal services performed by individuals for
such contractor or subcontractor. [1982 1st ex.s. c 18 § 14;
1945 c 35 § 11; Rem. Supp. 1945 § 9998-150. Prior: 1943 c
127 § 13; 1941 c 253 § 14; 1939 c 214 § 19; 1937 c 162 § 19.]
Severability—Conflict with federal requirements—1982 1st ex.s. c
18: See notes following RCW 50.12.200.
50.04.110
50.04.110 Employment—Situs of service. The term
"employment" shall include an individual's entire service performed within or without or both within and without this
state, if
(1) The service is localized in this state; or
(2) The service is not localized in any state, but some of
the service is performed in this state, and
(2004 Ed.)
Definitions
(a) the base of operations, or if there is no base of operations, then the place from which such service is directed or
controlled is in this state; or
(b) the base of operations or place from which such service is directed or controlled is not in any state in which some
part of the service is performed, but the individual's residence
is in this state; or
(3) The service is performed within the United States, the
Virgin Islands or Canada, if
(a) such service is not covered under the unemployment
compensation law of any other state, the Virgin Islands or
Canada, and
(b) the place from which the service is directed or controlled is in this state. [1971 c 3 § 6; 1945 c 35 § 12; Rem.
Supp. 1945 § 9998-151. Prior: 1943 c 127 § 13; 1941 c 253
§ 14; 1939 c 214 § 19; 1937 c 162 § 19.]
Construction—Compliance with federal act—1971 c 3: See RCW
50.44.080.
50.04.140
(c) The employer is a partnership or a trust and the number of the partners or trustees who are residents of this state is
greater than the number who are residents of any one other
state; or
(3) None of the criteria in subsections (1) and (2) of this
section is met but the employer has elected coverage in this
state, or the employer having failed to elect coverage in any
state, the individual has filed a claim for benefits, based on
such service, under the laws of this state.
(4) An "American employer", for the purposes of this
section, means a person who is:
(a) An individual who is a resident of the United States;
or
(b) A partnership if two-thirds or more of the partners are
residents of the United States; or
(c) A trust, if all of the trustees are residents of the United
States; or
(d) A corporation organized under the laws of the United
States or of any state. [1977 ex.s. c 292 § 1; 1971 c 3 § 7.]
50.04.115
50.04.115 Employment—Out-of-state service, election. Services not covered under RCW 50.04.110 or
50.04.116 which are performed entirely without this state,
with respect to no part of which contributions, interest, or
penalties are required and paid under an unemployment compensation law of any other state or of the federal government,
shall be deemed to be employment subject to this title if the
individual performing such services is a resident of this state
and the commissioner approves the election of the employing
unit for whom such services are performed that the entire service of such individual shall be deemed to be employment
subject to this title. [1983 1st ex.s. c 23 § 3; 1971 c 3 § 8;
1945 c 35 § 13; Rem. Supp. 1945 § 9998-152. Prior: 1943 c
127 § 13; 1941 c 253 § 14; 1937 c 162 § 19. Formerly RCW
50.04.130.]
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
Construction—Compliance with federal act—1971 c 3: See RCW
50.44.080.
50.04.116
50.04.116 Employment—Out-of-state service, when
included—"American employer" defined. The term
"employment" shall include the service of an individual who
is a citizen of the United States, performed outside the United
States (except in Canada, and in the case of the Virgin Islands
after December 31, 1971 and prior to January 1 of the year
following the year in which the United States secretary of
labor approves the unemployment compensation law of the
Virgin Islands under section 3304(a) of the Internal Revenue
Code of 1954) in the employ of an American employer (other
than service which is deemed "employment" under the provisions of RCW 50.04.110 or 50.04.120 or the parallel provisions of another state's law), if:
(1) The employer's principal place of business in the
United States is located in this state; or
(2) The employer has no place of business in the United
States but:
(a) The employer is an individual who is a resident of
this state; or
(b) The employer is a corporation which is organized
under the laws of this state; or
(2004 Ed.)
Effective dates—1977 ex.s. c 292: "This 1977 amendatory act is necessary for the immediate preservation of the public peace, health, and safety,
the support of the state government and its existing public institutions, and
shall take effect immediately: PROVIDED, That sections 6, 12, 14, 15, 16,
and 18 of this 1977 amendatory act shall take effect on January 1, 1978."
[1977 ex.s. c 292 § 28.]
Construction—Compliance with federal act—1971 c 3: See RCW
50.44.080.
50.04.120
50.04.120 Employment—Localized service. Service
shall be deemed to be localized within a state, if
(1) the service is performed entirely within the state; or
(2) the service is performed both within and without the
state, but the service performed without the state is incidental
to the individual's service within the state; for example, is
temporary or transitory in nature or consists of isolated transactions. [1945 c 35 § 14; Rem. Supp. 1945 § 9998-153. Prior:
1943 c 127 § 13; 1941 c 253 § 14; 1939 c 214 § 16; 1937 c
162 § 19.]
50.04.125
50.04.125 Employment—Foreign degree-granting
institutions—Employee services localized in country of
domicile. The services of employees of a foreign degreegranting institution who are nonimmigrant aliens under the
immigration laws of the United States, shall, for the purposes
of RCW 50.04.120, be considered to be localized or principally localized, in the country of domicile of the foreign
degree-granting institution as defined in RCW 28B.90.010 in
those instances where the income of those employees would
be exempt from taxation by virtue of the terms and provisions
of any treaty between the United States and the country of
domicile of the foreign degree-granting institution. However,
a foreign degree-granting institution is not precluded from
otherwise establishing that a nonimmigrant employee's services are, for the purpose of such statutes, principally located
in its country of domicile. [1993 c 181 § 8.]
50.04.140
50.04.140 Employment—Exception tests. Services
performed by an individual for remuneration shall be deemed
to be employment subject to this title unless and until it is
shown to the satisfaction of the commissioner that:
[Title 50 RCW—page 5]
50.04.145
Title 50 RCW: Unemployment Compensation
(1)(a) Such individual has been and will continue to be
free from control or direction over the performance of such
service, both under his or her contract of service and in fact;
and
(b) Such service is either outside the usual course of
business for which such service is performed, or that such
service is performed outside of all the places of business of
the enterprises for which such service is performed; and
(c) Such individual is customarily engaged in an independently established trade, occupation, profession, or business, of the same nature as that involved in the contract of
service.
(2) Or as a separate alternative, it shall not constitute
employment subject to this title if it is shown that:
(a) Such individual has been and will continue to be free
from control or direction over the performance of such service, both under his or her contract of service and in fact; and
(b) Such service is either outside the usual course of
business for which such service is performed, or that such
service is performed outside of all the places of business of
the enterprises for which such service is performed, or the
individual is responsible, both under the contract and in fact,
for the costs of the principal place of business from which the
service is performed; and
(c) Such individual is customarily engaged in an independently established trade, occupation, profession, or business, of the same nature as that involved in the contract of
service, or such individual has a principal place of business
for the work the individual is conducting that is eligible for a
business deduction for federal income tax purposes; and
(d) On the effective date of the contract of service, such
individual is responsible for filing at the next applicable filing period, both under the contract of service and in fact, a
schedule of expenses with the internal revenue service for the
type of business the individual is conducting; and
(e) On the effective date of the contract of service, or
within a reasonable period after the effective date of the contract, such individual has established an account with the
department of revenue, and other state agencies as required
by the particular case, for the business the individual is conducting for the payment of all state taxes normally paid by
employers and businesses and has registered for and received
a unified business identifier number from the state of Washington; and
(f) On the effective date of the contract of service, such
individual is maintaining a separate set of books or records
that reflect all items of income and expenses of the business
which the individual is conducting. [1991 c 246 § 6; 1945 c
35 § 15; Rem. Supp. 1945 § 9998-154. Prior: 1943 c 127 §
13; 1941 c 253 § 14; 1939 c 214 § 16; 1937 c 162 § 19.]
Effective date—Conflict with federal requirements—1991 c 246:
See notes following RCW 51.08.195.
50.04.145
50.04.145 Employment—Services performed for
contractor, when excluded. The term "employment" shall
not include services rendered by any person, firm, or corporation currently engaging in a business which is registered
under chapter 18.27 RCW or licensed under chapter 19.28
RCW when:
[Title 50 RCW—page 6]
(1) Contracting to perform work for any contractor registered under chapter 18.27 RCW or licensed under chapter
19.28 RCW;
(2) The person, firm, or corporation has a principal place
of business which would be eligible for a business deduction
for internal revenue service tax purposes other than that furnished by the contractor for which the business has contracted to furnish services;
(3) The person, firm, or corporation maintains a separate
set of books or records that reflect all items of income and
expenses of the business;
(4) The work which the person, firm, or corporation has
contracted to perform is:
(a) The work of a contractor as defined in RCW
18.27.010; or
(b) The work of installing wires or equipment to convey
electric current or installing apparatus to be operated by such
current as it pertains to the electrical industry as described in
chapter 19.28 RCW; and
(5) A contractor registered under chapter 18.27 RCW or
licensed under chapter 19.28 RCW does not supervise or control the means by which the result is accomplished or the
manner in which the work is performed. [1983 1st ex.s. c 23
§ 25; 1982 1st ex.s. c 18 § 13.]
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
Severability—Conflict with federal requirements—1982 1st ex.s. c
18: See notes following RCW 50.12.200.
50.04.148
50.04.148 Employment—Services performed by
musician or entertainer. (1) The term "employment" shall
not include services performed by a musician or entertainer
under a written contract with a purchaser of the services for a
specific engagement or engagements when such musician or
entertainer performs no other duties for the purchaser and is
not regularly and continuously employed by the purchaser.
The contract shall designate the leader of the music or entertainment group. A music or entertainment business or a
leader of a music or entertainment group shall be considered
an employer and not a purchaser of music or entertainment
services.
(2) Any musician or entertainer who performs for a
music or entertainment business or as a member of a music or
entertainment group is deemed an employee of the business
or group and the business or the leader of the group shall be
required to register as an employer with the department.
(3) Purchasers of services under subsection (1) of this
section shall not be subject to RCW 50.24.130 relating to a
principal's liability for unpaid contributions if the services are
purchased from a business or group registered as an employer
with the department.
(4) The term "music or entertainment business" or
"group" as used in this section means an employer whose
principal business activity is music or entertainment. The
term does not include those entities who provide music or
entertainment for members or patrons incidental to their principal business activity, and does not include an individual
employing musicians or entertainers on a casual basis. [1985
c 47 § 1.]
Effective date—1985 c 47: "This act is necessary for the immediate
preservation of the public peace, health, and safety, the support of the state
(2004 Ed.)
Definitions
government and its existing public institutions and shall take effect July 1,
1985." [1985 c 47 § 2.]
50.04.150
50.04.150 Employment—Agricultural labor. Except
as otherwise provided in RCW 50.04.155, the term "employment" shall not include service performed in agricultural
labor by individuals who are enrolled as students and regularly attending classes, or are between two successive academic years or terms, at an elementary school, a secondary
school, or an institution of higher education as defined in
RCW 50.44.037 and in the case of corporate farms not covered under RCW 50.04.155, the provisions regarding family
employment in RCW 50.04.180 shall apply.
Agricultural labor is defined as services performed:
(1) On a farm, in the employ of any person, in connection
with the cultivation of the soil, or in connection with raising
or harvesting any agricultural or horticultural commodity,
including raising, shearing, feeding, caring for, training, and
management of livestock, bees, poultry, and furbearing animals and wild life, or in the employ of the owner or tenant or
other operator of a farm in connection with the operation,
management, conservation, improvement, or maintenance of
such farm and its tools and equipment; or
(2) In packing, packaging, grading, storing, or delivering
to storage, or to market or to a carrier for transportation to
market, any agricultural or horticultural commodity; but only
if such service is performed as an incident to ordinary farming operations. The exclusions from the term "employment"
provided in this paragraph shall not be deemed to be applicable with respect to commercial packing houses, commercial
storage establishments, commercial canning, commercial
freezing, or any other commercial processing or with respect
to services performed in connection with the cultivation, raising, harvesting and processing of oysters or raising and harvesting of mushrooms or in connection with any agricultural
or horticultural commodity after its delivery to a terminal
market for distribution for consumption. [1989 c 380 § 78;
1977 ex.s. c 292 § 2; 1957 c 264 § 1; 1947 c 215 § 3; 1945 c
35 § 16; Rem. Supp. 1945 § 9998-155. Prior: 1943 c 127 §
13; 1941 c 253 § 14; 1939 c 214 § 16; 1937 c 162 § 19.]
Effective date—1989 c 380 §§ 78-81: "Sections 78 through 81 of this
act shall take effect on January 1, 1990." [1989 c 380 § 91.]
Conflict with federal requirements—1989 c 380: "If any part of this
act is found to be in conflict with federal requirements which are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1989 c 380 § 89.]
Severability—1989 c 380: See RCW 15.58.942.
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
50.04.155
50.04.155 Service performed in agricultural labor
for farm operator or crew leader. (1) Service performed in
agricultural labor on and after January 1, 1978, for a farm
operator or crew leader will be deemed services in employment if the farm operator or crew leader:
(2004 Ed.)
50.04.160
(a) Paid twenty thousand dollars or more as remuneration to individuals employed in agricultural labor during any
calendar quarter in the current or preceding calendar year; or
(b) Employed ten or more individuals in agricultural
labor for some portion of the day in each of twenty different
calendar weeks in either the current or preceding calendar
year regardless of whether they were employed at the same
moment of time or whether or not the weeks were consecutive.
(2) A farm operator is the owner or tenant of the farmlands who stands to gain or lose economically from the operations of the farm. Employment will be considered employment by the farm operator unless it is established to the satisfaction of the commissioner that the services were performed
in the employ of a crew leader. The risk of nonpersuasion is
upon the farm operator. The operator will nonetheless be liable for contributions under RCW 50.24.130 even though services performed on the operator's farmlands would not be
sufficient to bring the services under the term employment if
services performed on the operator's land in the employ of a
crew leader would be covered and the crew leader has failed
to pay contributions on the services. For the purposes of the
preceding sentence and RCW 50.24.130, all moneys paid or
payable to the crew leader by the farm operator shall be
deemed paid for services unless there is a written contract
clearly specifying the amounts of money to be attributed to
items other than services of the crew leader or the crew
leader's employees.
(3) For the purposes of this section, a crew leader is a
person who furnishes individuals to perform services in agricultural labor for the benefit of any other person, who pays
for the services performed in agricultural labor (either on his
or her own behalf or on behalf of the other person), and who
has not made a written agreement making himself or herself
an employee of the other person: PROVIDED, That no person shall be deemed a crew leader unless he or she is established independently of the person for whom the services are
performed and either has a valid certificate of registration
under the farm labor contractor registration act of 1963 or
substantially all the members of his or her crew operate or
maintain tractors, mechanized harvesting or crop dusting
equipment, or any other mechanized equipment which is provided by the crew leader. [1977 ex.s. c 292 § 3.]
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
50.04.160
50.04.160 Employment—Domestic service. Services
performed in domestic service in a private home, local college club, or local chapter of a college fraternity or sorority
shall not be considered services in employment unless the
services are performed after December 31, 1977, for a person
who paid remuneration of one thousand dollars or more to
individuals employed in this domestic service in any calendar
quarter in the current or the preceding calendar year. The
terms local college club and local chapter of a college fraternity or sorority shall not be deemed to include alumni clubs
or chapters. [1977 ex.s. c 292 § 4; 1947 c 215 § 4; 1945 c 35
§ 17; Rem. Supp. 1947 § 9998-156. Prior: 1943 c 127 § 13;
1941 c 253 § 14; 1939 c 214 § 16; 1937 c 162 § 19.]
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
[Title 50 RCW—page 7]
50.04.165
Title 50 RCW: Unemployment Compensation
50.04.165
50.04.165 Employment—Corporate officers—Election of coverage. Services performed by a person appointed
as an officer of a corporation under RCW 23B.08.400, other
than those covered by chapter 50.44 RCW, shall not be considered services in employment. However, a corporation may
elect to cover not less than all of its corporate officers under
RCW 50.24.160. If an employer does not elect to cover its
corporate officers under RCW 50.24.160, the employer must
notify its corporate officers in writing that they are ineligible
for unemployment benefits. If the employer fails to notify
any corporate officer, then that person shall not be considered
to be a corporate officer for the purposes of this section.
[1993 c 290 § 2; 1993 c 58 § 1; 1991 c 72 § 57; 1986 c 110 §
1; 1983 1st ex.s. c 23 § 4; 1981 c 35 § 13.]
Conflict with federal requirements—1993 c 58: "If any part of this
act is found to be in conflict with federal requirements which are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1993 c 58 § 4.]
Severability—1993 c 58: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1993 c 58 § 5.]
Effective date—1993 c 58: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect March 6,
1993." [1993 c 58 § 6.] 1993 c 58 was signed by the governor on April 19,
1993.
Conflict with federal requirements—1986 c 110: "If any part of this
act is found to be in conflict with federal requirements which are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1986 c 110 § 2.]
Severability—1986 c 110: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1986 c 110 § 3.]
Effective date—1986 c 110: "This act shall take effect July 1, 1986."
[1986 c 110 § 4.]
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
Severability—1981 c 35: See note following RCW 50.22.030.
within the United States and during the performance of which
the vessel does not touch at a port of the United States.
"American vessel", means any vessel documented or
numbered under the laws of the United States; and includes
any vessel which is neither documented or numbered under
the laws of the United States nor documented under the laws
of any foreign country if its crew is employed solely by one
or more citizens or residents of the United States or corporations organized under the laws of the United States or of any
state. [1949 c 214 § 3; 1947 c 215 § 5; 1945 c 35 § 18; Rem.
Supp. 1949 § 9998-157. Prior: 1943 c 127 § 13; 1941 c 253
§ 14; 1939 c 214 § 16; 1937 c 162 § 19.]
50.04.180
50.04.180 Family employment. The term "employment" shall not include service performed by an individual in
the employ of his or her spouse, nor shall it include service
performed by an unmarried individual under the age of eighteen years in the employ of his or her parent or step-parent.
[1973 c 73 § 2; 1951 c 265 § 6; 1945 c 35 § 19; Rem. Supp.
1945 § 9998-158. Prior: 1943 c 127 § 13; 1941 c 253 § 14;
1939 c 214 § 16; 1937 c 162 § 19.]
Effective dates—1973 c 73: See note following RCW 50.04.030.
Severability—1951 c 265: See note following RCW 50.98.070.
50.04.205
50.04.205 Services performed by aliens. Except as
provided in RCW 50.04.206, services performed by aliens
legally or illegally admitted to the United States shall be considered services in employment subject to the payment of
contributions to the extent that services by citizens are covered. [1990 c 245 § 2; 1977 ex.s. c 292 § 5.]
Conflict with federal requirements—Effective dates—1990 c 245:
See notes following RCW 50.04.030.
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
50.04.206 Employment—Nonresident alien. The
term "employment" shall not include service that is performed by a nonresident alien for the period he or she is temporarily present in the United States as a nonimmigrant under
subparagraph (F), (H)(ii), (H)(iii), or (J) of section 101(a)(15)
of the federal immigration and naturalization act, as
amended, and that is performed to carry out the purpose specified in the applicable subparagraph of the federal immigration and naturalization act. [2003 2nd sp.s. c 4 § 27; 1990 c
245 § 3.]
50.04.206
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Conflict with federal requirements—Effective dates—1990 c 245:
See notes following RCW 50.04.030.
50.04.170
50.04.170 Employment—Maritime service. The term
"employment" shall include an individual's entire service as
an officer or member of a crew of an American vessel wherever performed and whether in intrastate or interstate or foreign commerce, if the employer maintains within this state at
the beginning of the pay period an operating office from
which the operations of the vessel are ordinarily and regularly supervised, managed, directed and controlled. The term
"employment" shall not include services performed as an
officer or member of the crew of a vessel not an American
vessel and services on or in connection with an American
vessel under a contract of service which is not entered into
[Title 50 RCW—page 8]
50.04.210 Employment—Foreign governmental service. The term "employment" shall not include service performed in the employ of any other state or its political subdivisions, or of the United States government, or of any instrumentality of any other state or states or their political
subdivisions, or the United States; except that if the congress
of the United States shall permit states to require any instrumentality of the United States to make payments into an
unemployment fund under a state unemployment compensation act, then, to the extent permitted by congress, and from
and after the date when such permission becomes effective all
50.04.210
(2004 Ed.)
Definitions
the provisions of this title shall be applicable to such instrumentalities and to services performed for such instrumentalities in the same manner, to the same extent and on the same
terms as to all other employers, employing units, individuals
and services: PROVIDED, That if this state should not be
certified by the social security board under section 903 of the
social security act, as amended, for any year, then the payment required of such instrumentalities with respect to such
year shall be deemed to be erroneously collected and shall be
refunded by the commissioner from the fund in accordance
with the provisions of this title relating to adjustments and
refunds of contributions, interest, or penalties which have
been paid. [1983 1st ex.s. c 23 § 5; 1945 c 35 § 22; Rem.
Supp. 1945 § 9998-161. Prior: 1943 c 127 § 13; 1941 c 253
§ 14; 1939 c 214 § 16; 1937 c 162 § 19.]
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
50.04.245
Severability—1991 c 324: See RCW 18.16.910.
Severability—Conflict with federal requirements—1982 1st ex.s. c
18: See notes following RCW 50.12.200.
50.04.230
50.04.230 Employment—Services of insurance
agent, broker, or solicitor, real estate broker or real estate
salesman, and investment company agent or solicitor.
The term "employment" shall not include service performed
by an insurance agent, insurance broker, or insurance solicitor or a real estate broker or a real estate salesman to the
extent he or she is compensated by commission and service
performed by an investment company agent or solicitor to the
extent he or she is compensated by commission. The term
"investment company", as used in this section is to be construed as meaning an investment company as defined in the
act of congress entitled "Investment Company Act of 1940."
[1991 c 246 § 7; 1947 c 5 § 24; 1945 c 35 § 24; Rem. Supp.
1947 § 9998-162a.]
50.04.220
50.04.220 Employment—Service covered by federal
act. The term "employment" shall not include service with
respect to which unemployment compensation is payable
under an unemployment compensation system established by
an act of congress: PROVIDED, That the commissioner is
hereby authorized to enter into agreements with the proper
agencies under such act of congress, which agreements shall
become effective ten days after publication thereof in the
manner provided in this title for publication of general rules,
to provide reciprocal treatment to individuals who have, after
acquiring potential rights to benefits under this title, acquired
right to unemployment compensation under such act of congress, or who have, after acquiring potential rights to unemployment compensation under such act of congress, acquired
rights to benefits under this title. [1945 c 35 § 23; Rem.
Supp. 1945 § 9998-162. Prior: 1943 c 127 § 13; 1941 c 253
§ 14; 1939 c 214 § 16; 1937 c 162 § 19.]
Effective date—Conflict with federal requirements—1991 c 246:
See notes following RCW 51.08.195.
50.04.232
50.04.232 Employment—Travel services. The term
"employment" shall not include service performed by an outside agent who sells or arranges for travel services that are
provided to a travel agent as defined and registered under
RCW 19.138.021, to the extent the outside agent is compensated by commission. [1995 c 242 § 1.]
Conflict with federal requirements—1995 c 242: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1995 c 242 § 2.]
50.04.223
50.04.223 Employment—Massage practitioner. The
term "employment" does not include services performed by a
massage practitioner licensed under chapter 18.108 RCW in
a massage business if the use of the business facilities is contingent upon compensation to the owner of the business facilities and the person receives no compensation from the owner
for the services performed.
This exemption does not include services performed by a
massage practitioner for an employer under chapter 50.44
RCW. [1994 c 3 § 2; 1993 c 167 § 1.]
Conflict with federal requirements—Severability—Effective
dates—1994 c 3: See notes following RCW 50.04.020.
Effective date—1993 c 167: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1993."
[1993 c 167 § 2.]
50.04.235
50.04.235 Employment—Outside salesman paid by
commission. The term "employment" shall not include services as an outside salesman of merchandise paid solely by
way of commission; and such services must have been performed outside of all the places of business of the enterprises
for which such services are performed only. [1957 c 181 § 1.]
50.04.240
50.04.240 Employment—Newsboy's service. The
term "employment" shall not include service as a newsboy
selling or distributing newspapers on the street or from house
to house. [1945 c 35 § 25; Rem. Supp. 1945 § 9998-163.
Prior: 1943 c 127 § 13; 1941 c 253 § 14; 1939 c 214 § 16;
1937 c 162 § 19.]
50.04.245
50.04.225
50.04.225 Employment—Barber and cosmetology
services. The term "employment" does not include services
performed in a barber shop or cosmetology shop by persons
licensed under chapter 18.16 RCW if the person is a booth
renter as defined in *RCW 18.16.020. [1991 c 324 § 17;
1985 c 7 § 117; 1982 1st ex.s. c 18 § 20.]
*Reviser's note: RCW 18.16.020 was amended by 2002 c 111 § 2,
deleting the definition of "booth renter."
(2004 Ed.)
50.04.245 Employment—Services performed for
temporary services agency, employee leasing agency, or
services referral agency. (1) Subject to the other provisions
of this title, personal services performed for, or for the benefit
of, a third party pursuant to a contract with a temporary services agency, employee leasing agency, services referral
agency, or other entity shall be deemed to be employment for
the temporary services agency, employee leasing agency, services referral agency, or other entity when the agency is
[Title 50 RCW—page 9]
50.04.255
Title 50 RCW: Unemployment Compensation
responsible, under contract or in fact, for the payment of
wages in remuneration for the services performed.
(2) For the purposes of this section:
(a) "Temporary services agency" means an individual or
entity that is engaged in the business of furnishing individuals to perform services on a part-time or temporary basis for
a third party.
(b) "Employee leasing agency" means an individual or
entity that for a fee places the employees of a client onto its
payroll and leases such employees back to the client.
(c) "Services referral agency" means an individual or
entity that is engaged in the business of offering the services
of an individual to perform specific tasks for a third party.
[1995 c 120 § 1.]
Conflict with federal requirements—1995 c 120: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1995 c 120 § 2.]
50.04.255
50.04.255 Employment—Appraisal practitioner services. The term "employment" does not include services performed by an appraisal practitioner certified or licensed
under chapter 18.140 RCW in an appraisal business if the use
of the business facilities is contingent upon compensation to
the owner of the business facilities and the person receives no
compensation from the owner for the services performed.
This exemption does not include services performed by an
appraisal practitioner certified or licensed under chapter
18.140 RCW for an employer under chapter 50.44 RCW.
[1996 c 182 § 14.]
Effective dates—1996 c 182: See note following RCW 18.140.005.
50.04.265
50.04.265 Employment—Indian tribes. The term
"employment" includes services performed in the employ of
an Indian tribe as provided in RCW 50.50.010. [2001 1st
sp.s. c 11 § 2.]
Conflict with federal requirements—Severability—Effective date—
Retroactive application—2001 1st sp.s. c 11: See RCW 50.50.900 through
50.50.903.
50.04.270
50.04.270 Employment—Casual labor. The term
"employment" shall not include casual labor not in the course
of the employer's trade or business (labor which does not promote or advance the trade or business of the employer). Temporary labor in the usual course of an employer's trade or
business or domestic services as defined in RCW 50.04.160
shall not be deemed to be casual labor. [1977 ex.s. c 292 § 7;
1945 c 35 § 28; Rem. Supp. 1945 § 9998-166. Prior: 1943 c
127 § 13; 1941 c 253 § 14; 1939 c 214 § 16; 1937 c 162 § 19.]
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
50.04.280
50.04.280 Employment—"Pay period" determination. If the services performed during one-half or more of
any pay period by an individual for an employing unit constitute employment, all of the services of such individual for
[Title 50 RCW—page 10]
such period shall be deemed to be employment, but if the services performed during more than one-half of any such pay
period by an individual for an employing unit do not constitute employment, then none of the services of such individual
on behalf of such employing unit for such period shall be
deemed to be employment. As used in this paragraph, the
term "pay period" means a period of not more than thirty-one
consecutive days for which a payment of remuneration is
ordinarily made to an individual by the employing unit.
[1945 c 35 § 29; Rem. Supp. 1945 § 9998-167. Prior: 1943 c
127 § 13; 1941 c 253 § 14; 1939 c 214 § 16; 1937 c 162 § 19.]
50.04.290 Employment office. "Employment office"
means a free public employment office, or branch thereof,
operated by this or any other state as a part of a state controlled system of public employment offices, or by a federal
agency or any agency of a foreign government charged with
the administration of an unemployment compensation program or free public employment offices. All claims for unemployment compensation benefits, registrations for employment, and all job or placement referrals received or made by
any of the employment offices as above defined and pursuant
to regulation of the commissioner subsequent to December
31, 1941, are hereby declared in all respects to be valid. The
commissioner is authorized to make such investigation,
secure and transmit such information, make available such
services and facilities and exercise such of the other powers
provided herein with respect to the administration of this title
as he deems necessary or appropriate to facilitate the administration of any state or federal unemployment compensation
or public employment service law and in like manner to
accept and utilize information, services and facilities made
available to the state by the agency charged with the administration of any such unemployment compensation or public
employment service law. Any such action taken by the commissioner subsequent to December 31, 1941, is hereby
declared to be in all respects valid. [1945 c 35 § 30; Rem.
Supp. 1945 § 9998-168. Prior: 1943 c 127 § 13; 1941 c 253
§ 14.]
50.04.290
50.04.293 Misconduct. With respect to claims that
have an effective date before January 4, 2004, "misconduct"
means an employee's act or failure to act in willful disregard
of his or her employer's interest where the effect of the
employee's act or failure to act is to harm the employer's business. [2003 2nd sp.s. c 4 § 5; 1993 c 483 § 1.]
50.04.293
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Effective dates—Applicability—1993 c 483: "(1) Sections 1 and 8
through 11 of this act are necessary for the immediate preservation of the
public peace, health, or safety, or support of the state government and its
existing public institutions, and shall take effect July 3, 1993, and shall be
effective as to separations occurring after July 3, 1993.
(2) Section 2 of this act is necessary for the immediate preservation of
the public peace, health, or safety, or support of the state government and its
existing public institutions, and shall take effect July 3, 1993, and is effective
as to weeks claimed after July 3, 1993.
(3) Section 12 of this act is necessary for the immediate preservation of
the public peace, health, or safety, or support of the state government and its
existing public institutions, and shall take effect immediately [May 17,
1993], and is effective as to new claims filed after July 3, 1993.
(4) Section 19 of this act is necessary for the immediate preservation of
the public peace, health, or safety, or support of the state government and its
existing public institutions, and shall take effect July 3, 1993, and is effective
(2004 Ed.)
Definitions
as to requests for relief of charges received after July 3, 1993.
(5) Sections 15, 17, and 18 of this act shall be effective as to new
extended benefit claims filed after October 2, 1993.
(6) Sections 13 and 14 of this act shall take effect January 1, 1994.
(7) Sections 3, 4, and 5 of this act shall take effect January 2, 1994.
(8) Sections 20 and 21 of this act shall take effect for tax year 1994.
(9) Section 16 of this act is necessary for the immediate preservation of
the public peace, health, or safety, or support of the state government and its
existing public institutions, and shall take effect immediately [May 17,
1993]." [1993 c 483 § 23.]
Conflict with federal requirements—1993 c 483: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1993 c 483 § 24.]
Severability—1993 c 483: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1993 c 483 § 25.]
50.04.294
50.04.294 Misconduct—Gross misconduct. With
respect to claims that have an effective date on or after January 4, 2004:
(1) "Misconduct" includes, but is not limited to, the following conduct by a claimant:
(a) Willful or wanton disregard of the rights, title, and
interests of the employer or a fellow employee;
(b) Deliberate violations or disregard of standards of
behavior which the employer has the right to expect of an
employee;
(c) Carelessness or negligence that causes or would
likely cause serious bodily harm to the employer or a fellow
employee; or
(d) Carelessness or negligence of such degree or recurrence to show an intentional or substantial disregard of the
employer's interest.
(2) The following acts are considered misconduct
because the acts signify a willful or wanton disregard of the
rights, title, and interests of the employer or a fellow
employee. These acts include, but are not limited to:
(a) Insubordination showing a deliberate, willful, or purposeful refusal to follow the reasonable directions or instructions of the employer;
(b) Repeated inexcusable tardiness following warnings
by the employer;
(c) Dishonesty related to employment, including but not
limited to deliberate falsification of company records, theft,
deliberate deception, or lying;
(d) Repeated and inexcusable absences, including
absences for which the employee was able to give advance
notice and failed to do so;
(e) Deliberate acts that are illegal, provoke violence or
violation of laws, or violate the collective bargaining agreement. However, an employee who engages in lawful union
activity may not be disqualified due to misconduct;
(f) Violation of a company rule if the rule is reasonable
and if the claimant knew or should have known of the existence of the rule; or
(g) Violations of law by the claimant while acting within
the scope of employment that substantially affect the claim(2004 Ed.)
50.04.310
ant's job performance or that substantially harm the
employer's ability to do business.
(3) "Misconduct" does not include:
(a) Inefficiency, unsatisfactory conduct, or failure to perform well as the result of inability or incapacity;
(b) Inadvertence or ordinary negligence in isolated
instances; or
(c) Good faith errors in judgment or discretion.
(4) "Gross misconduct" means a criminal act in connection with an individual's work for which the individual has
been convicted in a criminal court, or has admitted committing, or conduct connected with the individual's work that
demonstrates a flagrant and wanton disregard of and for the
rights, title, or interest of the employer or a fellow employee.
[2003 2nd sp.s. c 4 § 6.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
50.04.295
50.04.295 Payments in lieu of contributions. "Payments in lieu of contributions" means money payments due to
the state unemployment compensation fund as provided in
RCW 50.44.060. [1971 c 3 § 2.]
Construction—Compliance with federal act—1971 c 3: See RCW
50.44.080.
50.04.300
50.04.300 State. "State" includes, in addition to the
states of the United States of America, the District of Columbia, the Virgin Islands, and the Commonwealth of Puerto
Rico. [1977 ex.s. c 292 § 8; 1971 c 3 § 10; 1945 c 35 § 31;
Rem. Supp. 1945 § 9998-169. Prior: 1943 c 127 § 13; 1941
c 253 § 14; 1939 c 214 § 16; 1937 c 162 § 19.]
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
Construction—Compliance with federal act—1971 c 3: See RCW
50.44.080.
50.04.310
50.04.310 Unemployed individual—Individual
deemed not "unemployed." (1) An individual shall be
deemed to be "unemployed" in any week during which the
individual performs no services and with respect to which no
remuneration is payable to the individual, or in any week of
less than full time work, if the remuneration payable to the
individual with respect to such week is less than one and onethird times the individual's weekly benefit amount plus five
dollars. The commissioner shall prescribe regulations applicable to unemployed individuals making such distinctions in
the procedures as to such types of unemployment as the commissioner deems necessary.
(2) An individual shall be deemed not to be "unemployed" during any week which falls totally within a period
during which the individual, pursuant to a collective bargaining agreement or individual employment contract, is
employed full time in accordance with a definition of full
time contained in the agreement or contract, and for which
compensation for full time work is payable. This subsection
may not be applied retroactively to an individual who had no
guarantee of work at the start of such period and subsequently
is provided additional work by the employer. [1984 c 134 §
1; 1973 2nd ex.s. c 7 § 1; 1945 c 35 § 32; Rem. Supp. 1945 §
9998-170. Prior: 1943 c 127 § 13; 1941 c 253 § 14; 1939 c
214 § 16; 1939 c 162 § 19.]
[Title 50 RCW—page 11]
50.04.320
Title 50 RCW: Unemployment Compensation
Application—1973 2nd ex.s. c 7: "This act shall apply to weeks of
unemployment commencing on or after January 6, 1974." [1973 2nd ex.s. c
7 § 4.]
50.04.320
50.04.320 Wages, remuneration. (1) For the purpose
of payment of contributions, "wages" means the remuneration paid by one employer during any calendar year to an
individual in its employment under this title or the unemployment compensation law of any other state in the amount specified in RCW 50.24.010. If an employer (hereinafter referred
to as a successor employer) during any calendar year acquires
substantially all the operating assets of another employer
(hereinafter referred to as a predecessor employer) or assets
used in a separate unit of a trade or business of a predecessor
employer, and immediately after the acquisition employs in
the individual's trade or business an individual who immediately before the acquisition was employed in the trade or
business of the predecessor employer, then, for the purposes
of determining the amount of remuneration paid by the successor employer to the individual during the calendar year
which is subject to contributions, any remuneration paid to
the individual by the predecessor employer during that calendar year and before the acquisition shall be considered as
having been paid by the successor employer.
(2) For the purpose of payment of benefits, "wages"
means the remuneration paid by one or more employers to an
individual for employment under this title during his base
year: PROVIDED, That at the request of a claimant, wages
may be calculated on the basis of remuneration payable. The
department shall notify each claimant that wages are calculated on the basis of remuneration paid, but at the claimant's
request a redetermination may be performed and based on
remuneration payable.
(3) For the purpose of payment of benefits and payment
of contributions, the term "wages" includes tips which are
received after January 1, 1987, while performing services
which constitute employment, and which are reported to the
employer for federal income tax purposes.
(4)(a) "Remuneration" means all compensation paid for
personal services including commissions and bonuses and the
cash value of all compensation paid in any medium other than
cash. The reasonable cash value of compensation paid in any
medium other than cash and the reasonable value of gratuities
shall be estimated and determined in accordance with rules
prescribed by the commissioner. Remuneration does not
include payments to members of a reserve component of the
armed forces of the United States, including the organized
militia of the state of Washington, for the performance of
duty for periods not exceeding seventy-two hours at a time.
(b) Previously accrued compensation, other than severance pay or payments received pursuant to plant closure
agreements, when assigned to a specific period of time by
virtue of a collective bargaining agreement, individual
employment contract, customary trade practice, or request of
the individual compensated, shall be considered remuneration for the period to which it is assigned. Assignment clearly
occurs when the compensation serves to make the individual
eligible for all regular fringe benefits for the period to which
the compensation is assigned.
(c) Settlements or other proceeds received by an individual as a result of a negotiated settlement for termination of an
[Title 50 RCW—page 12]
individual written employment contract prior to its expiration
date shall be considered remuneration. The proceeds shall be
deemed assigned in the same intervals and in the same
amount for each interval as compensation was allocated
under the contract.
(d) Except as provided in (c) of this subsection, the provisions of this subsection (4) pertaining to the assignment of
previously accrued compensation shall not apply to individuals subject to RCW 50.44.050. [1998 c 162 § 1; 1995 c 296
§ 1; 1986 c 21 § 1; 1984 c 134 § 2; 1983 1st ex.s. c 23 § 6;
1983 c 67 § 1; 1970 ex.s. c 2 § 3; 1953 ex.s. c 8 § 2; 1951 c
265 § 3; 1949 c 214 § 4; 1947 c 215 § 6; 1945 c 35 § 33; Rem.
Supp. 1949 § 9998-171. Prior: 1943 c 127 § 13; 1941 c 253
§ 14; 1939 c 214 § 16; 1937 c 162 § 19.]
Conflict with federal requirements—1998 c 162: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this
act. Rules adopted under this act must meet federal requirements that are a
necessary condition to the receipt of federal funds by the state or the granting
of federal unemployment tax credits to employers in this state." [1998 c 162
§ 2.]
Effective date—1998 c 162: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect on the Sunday
following the day that the governor signs this act [March 29, 1998] and is
effective for initial claims filed on or after that Sunday." [1998 c 162 § 3.]
Severability—1995 c 296: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1995 c 296 § 5.]
Conflict with federal requirements—1995 c 296: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1995 c 296 § 6.]
Effective date—1995 c 296: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[May 9, 1995]." [1995 c 296 § 7.]
Conflict with federal requirements—1986 c 21: "If any part of this
act is found to be in conflict with federal requirements which are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1986 c 21 § 2.]
Severability—1986 c 21: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1986 c 21 § 3.]
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
Effective date—1970 ex.s. c 2: See note following RCW 50.04.020.
Severability—1951 c 265: See note following RCW 50.98.070.
50.04.323
50.04.323 Wages, remuneration—Government or
private retirement pension plan payments—Effect upon
(2004 Ed.)
Definitions
eligibility—Reduction in benefits. (1) The amount of benefits payable to an individual for any week which begins after
October 3, 1980, and which begins in a period with respect to
which such individual is receiving a governmental or other
pension, retirement or retired pay, annuity, or any other similar periodic payment which is based on the previous work of
such individual shall be reduced (but not below zero) by an
amount equal to the amount of such pension, retirement or
retired pay, annuity, or other payment, which is reasonably
attributable to such week. However:
(a) The requirements of this subsection shall apply to any
pension, retirement or retired pay, annuity, or other similar
periodic payment only if—
(i) Such pension, retirement or retired pay, annuity, or
similar payment is under a plan maintained (or contributed
to) by a base period employer; and
(ii) In the case of such a payment not made under the
Social Security Act or the Railroad Retirement Act of 1974
(or corresponding provisions of prior law), services performed for such employer by the individual after the beginning of the base period (or remuneration for such services)
affect eligibility for, or increase the amount of, such pension,
retirement or retired pay, annuity, or similar payment;
(b) The amount of any such a reduction shall take into
account contributions made by the individual for the pension,
retirement or retired pay, annuity, or other similar periodic
payment, in accordance with regulations prescribed by the
commissioner; and
(c) No deduction shall be made from the amount of benefits payable for a week for individuals receiving federal
social security pensions to take into account the individuals'
contributions to the pension program.
(2) In the event that a retroactive pension or retirement
payment covers a period in which an individual received benefits under the provisions of this title, the amount in excess of
the amount to which such individual would have been entitled had such retirement or pension payment been considered
as provided in this section shall be recoverable under RCW
50.20.190.
(3) A lump sum payment accumulated in a plan
described in this section paid to an individual eligible for
such payment shall be prorated over the life expectancy of the
individual computed in accordance with the commissioner's
regulation.
(4) The resulting weekly benefit amount payable after
reduction under this section, if not a multiple of one dollar,
shall be reduced to the next lower multiple of one dollar.
(5) Any ambiguity in subsection (1) of this section
should be construed in a manner consistent with 26 U.S.C.
Sec. 3304 (a)(15) as last amended by P.L. 96-364. [1993 c
483 § 2; 1983 1st ex.s. c 23 § 7; 1981 c 35 § 1; 1980 c 74 § 1;
1973 2nd ex.s. c 7 § 2; 1973 1st ex.s. c 167 § 1; 1970 ex.s. c
2 § 19.]
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
Effective dates—Severability—1981 c 35: See notes following RCW
50.22.030.
Severability—1980 c 74: "If any provision of this amendatory act or its
application to any person or circumstance is held invalid, the remainder of
(2004 Ed.)
50.04.330
the act or the application of the provision to other persons or circumstances
is not affected." [1980 c 74 § 6.]
Effective dates—1980 c 74 §§ 1, 2, and 3: "Sections 1 and 2 of this
amendatory act are necessary for the immediate preservation of the public
peace, health, and safety, and the support of the state government and its
existing public institutions, and shall take effect with weeks of unemployment beginning after March 31, 1980. Section 3 of this amendatory act shall
take effect with benefit years beginning after June 30, 1980." [1980 c 74 §
7.]
Application—1973 2nd ex.s. c 7: See note following RCW 50.04.310.
Effective date—1970 ex.s. c 2: See note following RCW 50.04.020.
50.04.330
50.04.330 Wages, remuneration—Retirement and
disability payments excepted. Prior to January 1, 1951, the
term "wages" shall not include the amount of any payment by
an employing unit for or on behalf of an individual in its
employ under a plan or system established by such employing unit which makes provision for individuals in its employ
generally, or for a class or classes of such individuals (including any amount paid by an employing unit for insurance or
annuities or into a fund to provide for any payment) on
account of retirement, sickness or accident disability, or medical and hospitalization expenses in connection with sickness
or accident disability. After December 31, 1950, the term
"wages" shall not include:
(1) The amount of any payment made (including any
amount paid by an employing unit for insurance or annuities,
or into a fund to provide for any such payment), to, or on
behalf of, an individual or any of his dependents under a plan
or system established by an employing unit which makes provision generally for individuals performing service for it (or
for such individuals generally and their dependents) or for a
class or classes of such individuals (or for a class or classes of
such individuals and their dependents), on account of (a)
retirement, or (b) sickness or accident disability, or (c) medical or hospitalization expenses in connection with sickness or
accident disability or (d) death;
(2) the amount of any payment by an employing unit to
an individual performing service for it (including any amount
paid by an employing unit for insurance or annuities, or into
a fund, to provide for any such payment) on account of retirement;
(3) the amount of any payment on account of sickness or
accident disability, or medical or hospitalization expenses in
connection with sickness or accident disability, made by an
employing unit to, or on behalf of, an individual performing
services for it after the expiration of six calendar months following the last calendar month in which the individual performed services for such employing unit;
(4) the amount of any payment made by an employing
unit to, or on behalf of, an individual performing services for
it or his beneficiary (a) from or to a trust exempt from tax
under section 165(a) of the federal internal revenue code at
the time of such payment unless such payment is made to an
individual performing services for the trust as remuneration
for such services and not as a beneficiary of the trust, or (b)
under or to an annuity plan which, at the time of such payments, meets the requirements of section 165(a)(3), (4), (5),
and (6) of the federal internal revenue code; or
(5) the amount of any payment (other than vacation or
sick pay) made to an individual after the month in which he
attains the age of sixty-five, if he did not perform services for
[Title 50 RCW—page 13]
50.04.335
Title 50 RCW: Unemployment Compensation
the employing unit in the period for which such payment is
made. [1951 c 265 § 4; 1949 c 214 § 5; 1945 c 35 § 34; Rem.
Supp. 1949 § 9998-173. Prior: 1943 c 127 § 13; 1941 c 253
§ 14; 1939 c 214 § 16; 1937 c 162 § 19.]
Severability—1951 c 265: See note following RCW 50.98.070.
50.04.335
50.04.335 Wages, remuneration—Stock transfers
excepted. After December 31, 2003, for the purpose of the
payment of contributions, the term "wages" does not include
an employee's income attributable to the transfer of shares of
stock to the employee pursuant to his or her exercise of a
stock option granted for any reason connected with his or her
employment. [2003 2nd sp.s. c 4 § 2.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
50.04.340
50.04.340 Wages, remuneration—Death benefits
excepted. Prior to January 1, 1951, the term "wages" shall
not include the amount of any payment by an employing unit
for or on behalf of an individual in its employ under a plan or
system established by such employing unit which makes provision for individuals in its employ generally, or for a class or
classes of such individuals (including any amount paid by an
employing unit for insurance or annuities or into a fund to
provide for any payment) on account of death, provided the
individual in its employ
(1) has not the option to receive instead of provisions for
such death benefits, any part of such payment, or, if such
death benefit is insured, any part of the premium (or contributions to premiums) paid by his employing unit; and
(2) has not the right under the provisions of the plan or
system or policy of insurance providing for such death benefits to assign such benefits or to receive a cash consideration
in lieu of such benefits, either upon his withdrawal from the
plan or system providing for such benefits or upon termination of such plan or system or policy of insurance or of his
services with such employing unit. [1951 c 265 § 5; 1949 c
214 § 6; 1945 c 35 § 35; Rem. Supp. 1949 § 9998-173. Prior:
1943 c 127 § 13; 1941 c 253 § 14.]
Severability—1951 c 265: See note following RCW 50.98.070.
50.04.350
50.04.350 Wages, remuneration—Excepted payments. The term "wages" shall not include the payment by
an employing unit (without deduction from the remuneration
of the individual in its employ) of the tax imposed upon an
individual in employment under section 1400 of the federal
internal revenue code, as amended, or any amount paid to a
person in the military service for any pay period during which
he performs no service for the employer: PROVIDED,
HOWEVER, That prior to January 1, 1952, the term "wages"
shall not include dismissal payments which an employing
unit is not legally required to make. [1951 c 265 § 2; 1945 c
35 § 36; Rem. Supp. 1945 § 9998-174. Prior: 1943 c 127 §
13; 1941 c 253 § 14.]
Severability—1951 c 265: See note following RCW 50.98.070.
50.04.355
50.04.355 Wages, remuneration—Average annual
wage—Average weekly wage—Average annual wage for
contributions purposes. (1) For computations made before
January 1, 2007, the employment security department shall
[Title 50 RCW—page 14]
compute, on or before the fifteenth day of June of each year,
an "average annual wage", an "average weekly wage", and an
"average annual wage for contributions purposes" from information for the specified preceding calendar years including
corrections thereof reported within three months after the
close of the final year of the specified years by all employers
as defined in RCW 50.04.080.
(a) The "average annual wage" is the quotient derived by
dividing the total remuneration reported by all employers for
the preceding calendar year by the average number of workers reported for all months of the preceding calendar year and
if the result is not a multiple of one dollar, rounding the result
to the next lower multiple of one dollar.
(b) The "average weekly wage" is the quotient derived
by dividing the "average annual wage" obtained under (a) of
this subsection by fifty-two and if the result is not a multiple
of one dollar, rounding the result to the next lower multiple of
one dollar.
(c) The "average annual wage for contributions purposes" is the quotient derived by dividing by three the total
remuneration reported by all employers subject to contributions for the preceding three consecutive calendar years and
dividing this amount by the average number of workers
reported for all months of these three years by these same
employers and if the result is not a multiple of one dollar,
rounding the result to the next lower multiple of one dollar.
(2) For computations made on or after January 1, 2007,
the employment security department shall compute, on or
before the fifteenth day of June of each year, an "average
annual wage," an "average weekly wage," and an "average
annual wage for contributions purposes" from information
for the preceding calendar year including corrections thereof
reported within three months after the close of that year by all
employers as defined in RCW 50.04.080.
(a) The "average annual wage" is the quotient derived by
dividing the total remuneration reported by all employers by
the average number of workers reported for all months and if
the result is not a multiple of one dollar, rounding the result to
the next lower multiple of one dollar.
(b) The "average weekly wage" is the quotient derived
by dividing the "average annual wage" obtained under (a) of
this subsection by fifty-two and if the result is not a multiple
of one dollar, rounding the result to the next lower multiple of
one dollar.
(c) The "average annual wage for contributions purposes" is the quotient derived by dividing the total remuneration reported by all employers subject to contributions by the
average number of workers reported for all months by these
same employers and if the result is not a multiple of one dollar, rounding the result to the next lower multiple of one dollar. [2003 2nd sp.s. c 4 § 15; 2000 c 2 § 1; 1977 ex.s. c 33 §
2; 1975 1st ex.s. c 228 § 1; 1973 c 73 § 3; 1970 ex.s. c 2 § 6.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Conflict with federal requirements—2000 c 2: "If any part of this act
is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this
act. Rules adopted under this act must meet federal requirements that are a
necessary condition to the receipt of federal funds by the state or the granting
(2004 Ed.)
Temporary Total Disability
of federal unemployment tax credits to employers in this state." [2000 c 2 s
17.]
Severability—2000 c 2: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [2000 c 2 § 18.]
Effective date—2000 c 2: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[February 7, 2000]." [2000 c 2 § 19.]
Application—2000 c 2 §§ 1, 2, 4, 5, 8, and 12-15: See note following
RCW 50.22.150.
Effective dates—Construction—1977 ex.s. c 33: See notes following
RCW 50.04.030.
Effective date—1975 1st ex.s. c 228: "All sections of this 1975 amendatory act are necessary for the immediate preservation of the public peace,
health, and safety, the support of the state government and its existing public
institutions, and shall take effect on the first Sunday following signature by
the governor [June 29, 1975]." [1975 1st ex.s. c 228 § 19.]
Effective dates—1973 c 73: See note following RCW 50.04.030.
Effective date—1970 ex.s. c 2: See note following RCW 50.04.020.
50.04.360
50.04.360 Week. "Week" means any period of seven
consecutive calendar days ending at midnight as the commissioner may by regulation prescribe. [1945 c 35 § 37; Rem.
Supp. 1945 § 9998-175. Prior: 1943 c 127 § 13; 1941 c 253
§ 14; 1939 c 214 § 16; 1937 c 162 § 19.]
Chapter 50.06
Chapter 50.06 RCW
TEMPORARY TOTAL DISABILITY
Sections
50.06.010
50.06.020
50.06.030
50.06.040
50.06.050
50.06.900
50.06.910
Purpose.
Allowable beneficiaries.
Application for initial determination of disability—Special
base year—Special individual benefit year.
Laws and regulations governing amounts payable and right to
benefits.
Use of wages and time worked for prior claims—Effect.
Application of chapter—Recipients of industrial insurance or
crime victims compensation.
Partial invalidity of chapter.
50.06.010
50.06.010 Purpose. This chapter is enacted for the purpose of providing the protection of the unemployment compensation system to persons who have suffered a temporary
total disability and is a recognition by this legislature of the
economic hardship confronting those persons who have not
been promptly reemployed after a prolonged period of temporary total disability. [1993 c 483 § 3; 1984 c 65 § 1; 1975
1st ex.s. c 228 § 7.]
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
Effective date—1975 1st ex.s. c 228: See note following RCW
50.04.355.
50.06.020
50.06.020 Allowable beneficiaries. The benefits of this
chapter shall be allowed only to:
(1) Individuals who have suffered a temporary total disability and have received compensation under the industrial
insurance or crime victims compensation laws of this state,
any other state or the United States for a period of not less
than thirteen consecutive calendar weeks by reason of such
temporary total disability; or
(2004 Ed.)
50.06.030
(2) Individuals who are reentering the work force after
an absence of not less than thirteen consecutive calendar
weeks resulting from temporary total physical disability
because of a nonwork-related injury or illness: PROVIDED,
That individuals authorized to receive benefits under this
subsection are required to meet other eligibility requirements
under Title 50 RCW. [1993 c 483 § 4; 1984 c 65 § 2; 1975
1st ex.s. c 228 § 8.]
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
Effective date—1975 1st ex.s. c 228: See note following RCW
50.04.355.
50.06.030
50.06.030 Application for initial determination of
disability—Special base year—Special individual benefit
year. (1) In the case of individuals eligible under RCW
50.06.020(1), an application for initial determination made
pursuant to this chapter, to be considered timely, must be
filed in accordance with RCW 50.20.140 within twenty-six
weeks following the week in which the period of temporary
total disability commenced. Notice from the department of
labor and industries shall satisfy this requirement. The
records of the agency supervising the award of compensation
shall be conclusive evidence of the fact of temporary disability and the beginning date of such disability.
(2) In the case of individuals eligible under RCW
50.06.020(2), an application for initial determination must be
filed in accordance with RCW 50.20.140 within twenty-six
weeks following the week in which the period of temporary
total physical disability commenced. This filing requirement
is satisfied by filing a signed statement from the attending
physician stating the date that the disability commenced and
stating that the individual was unable to reenter the work
force during the time of the disability. The department may
examine any medical information related to the disability. If
the claim is appealed, a base year employer may examine the
medical information related to the disability and require, at
the employer's expense, that the individual obtain the opinion
of a second health care provider selected by the employer
concerning any information related to the disability.
(3) The employment security department shall process
and issue an initial determination of entitlement or nonentitlement as the case may be.
(4) For the purpose of this chapter, a special base year is
established for an individual consisting of either the first four
of the last five completed calendar quarters or the last four
completed calendar quarters immediately prior to the first
day of the calendar week in which the individual's temporary
total disability commenced, and a special individual benefit
year is established consisting of the entire period of disability
and a fifty-two consecutive week period commencing with
the first day of the calendar week immediately following the
week or part thereof with respect to which the individual
received his final temporary total disability compensation
under the applicable industrial insurance or crime victims
compensation laws, or the week in which the individual reentered the work force after an absence under subsection (2) of
this section, as applicable, except that no special benefit year
shall have a duration in excess of three hundred twelve calendar weeks: PROVIDED HOWEVER, That such special benefit year will not be established unless the criteria contained
[Title 50 RCW—page 15]
50.06.040
Title 50 RCW: Unemployment Compensation
in RCW 50.04.030 has been met, except that an individual
meeting the eligibility requirements of this chapter and who
has an unexpired benefit year established which would overlap the special benefit year provided by this chapter, notwithstanding the provisions in RCW 50.04.030 relating to the
establishment of a subsequent benefit year and RCW
50.40.010 relating to waiver of rights, may elect to establish
a special benefit year under this chapter: PROVIDED FURTHER, that the unexpired benefit year shall be terminated
with the beginning of the special benefit year if the individual
elects to establish such special benefit year.
(5) For the purposes of establishing a benefit year, the
department shall initially use the first four of the last five
completed calendar quarters as the base year. If a benefit year
is not established using the first four of the last five calendar
quarters as the base year, the department shall use the last
four completed calendar quarters as the base year. [2002 c 73
§ 1; 1993 c 483 § 5; 1987 c 278 § 3; 1984 c 65 § 3; 1975 1st
ex.s. c 228 § 9.]
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
Effective date—1975 1st ex.s. c 228: See note following RCW
50.04.355.
50.06.910
50.06.910 Partial invalidity of chapter. Should any
part of this chapter be declared unconstitutional by the final
decision of any court or declared out of conformity by the
United States secretary of labor, the commissioner shall
immediately discontinue the payment of benefits based on
this chapter, declare it inoperative and report that fact to the
governor and the legislature. [1975 1st ex.s. c 228 § 13.]
Effective date—1975 1st ex.s. c 228: See note following RCW
50.04.355.
Chapter 50.08
Chapter 50.08 RCW
ESTABLISHMENT OF DEPARTMENT
Sections
50.08.010
50.08.020
50.08.030
Employment security department established.
Divisions established.
Administration of family services and programs.
Displaced homemaker act, departmental participation: RCW 28B.04.080.
Labor market information and economic analysis—Duties and authority:
Chapter 50.38 RCW.
Public bodies may retain collection agencies to collect public debts—Fees:
RCW 19.16.500.
50.08.010
50.06.040
50.06.040 Laws and regulations governing amounts
payable and right to benefits. The individual's weekly benefit amount and maximum amount payable during the special
benefit year shall be governed by the provision contained in
RCW 50.20.120. The individual's basic and continuing right
to benefits shall be governed by the general laws and regulations relating to the payment of unemployment compensation
benefits to the extent that they are not in conflict with the provisions of this chapter. [1975 1st ex.s. c 228 § 10.]
50.08.010 Employment security department established. There is established the employment security department for the state, to be administered by a commissioner. The
commissioner shall be appointed by the governor with the
consent of the senate, and shall hold office at the pleasure of,
and receive such compensation for his services as may be
fixed by, the governor. [1953 ex.s. c 8 § 3; 1947 c 215 § 8;
1945 c 35 § 38; Rem. Supp. 1947 § 9998-176. Prior: 1939 c
19 § 1; 1937 c 162 § 12.]
50.08.020
Effective date—1975 1st ex.s. c 228: See note following RCW
50.04.355.
50.06.050
50.06.050 Use of wages and time worked for prior
claims—Effect. The fact that wages, hours or weeks worked
during the special base year may have been used in the computation of a prior valid claim for unemployment compensation shall not affect a claim for benefits made pursuant to the
provisions of this chapter; however, wages, hours and weeks
worked used in computing entitlement on a claim filed pursuant to this chapter shall not be available or used for establishing entitlement or amount of benefits in any succeeding benefit year. [1975 1st ex.s. c 228 § 11.]
Effective date—1975 1st ex.s. c 228: See note following RCW
50.04.355.
50.06.900
50.06.900 Application of chapter—Recipients of
industrial insurance or crime victims compensation. (1)
This chapter shall be available to individuals who suffer a
temporary total disability, compensable by an industrial
insurance program, after June 29, 1975.
(2) This chapter shall also be available to individuals
who suffer a temporary total disability compensable under
crime victims compensation laws, after June 7, 1984. [1984
c 65 § 4; 1975 1st ex.s. c 228 § 12.]
Effective date—1975 1st ex.s. c 228: See note following RCW
50.04.355.
[Title 50 RCW—page 16]
50.08.020 Divisions established. There are hereby
established in the employment security department two coordinate divisions to be known as the unemployment compensation division, and the Washington state employment service division, each of which shall be administered by a full
time salaried supervisor who shall be an assistant to the commissioner and shall be appointed by him. Each division shall
be responsible to the commissioner for the dispatch of its distinctive functions. Each division shall be a separate administrative unit with respect to personnel, budget, and duties,
except insofar as the commissioner may find that such separation is impracticable.
It is hereby further provided that the governor in his discretion may delegate any or all of the organization, administration and functions of the said Washington state employment service division to any federal agency. [1973 1st ex.s. c
158 § 1; 1947 c 215 § 9; 1945 c 35 § 39; Rem. Supp. 1947 §
9998-177. Prior: 1943 c 127 § 9; 1939 c 214 § 7; 1937 c 162
§ 9.]
Effective date—1973 1st ex.s. c 158: "This 1973 amendatory act is
necessary for the immediate preservation of the public peace, health, and
safety, the support of the state government and its existing public institutions, and shall take effect on July 1, 1973." [1973 1st ex.s. c 158 § 21.]
50.08.030
50.08.030 Administration of family services and programs. The commissioner shall administer family services
and programs to promote the state's policy as provided in
RCW 74.14A.025. [1992 c 198 § 10.]
(2004 Ed.)
Administration
Severability—Effective date—1992 c 198: See RCW 70.190.910 and
70.190.920.
Chapter 50.12
Chapter 50.12 RCW
ADMINISTRATION
Sections
50.12.010
50.12.020
50.12.031
50.12.040
50.12.042
50.12.045
50.12.050
50.12.060
50.12.070
50.12.080
50.12.090
50.12.100
50.12.120
50.12.130
50.12.140
50.12.150
50.12.160
50.12.170
50.12.180
50.12.190
50.12.200
50.12.210
50.12.220
50.12.230
50.12.235
50.12.240
50.12.245
50.12.250
50.12.252
50.12.280
Commissioner's duties and powers.
Personnel appointed by commissioner.
Personnel board—Travel expenses of board.
Rule-making authority.
Rules—2003 2nd sp.s. c 4.
Contract to issue conditional federal employer identification
numbers, credentials, and documents in conjunction with
license applications.
Reciprocal benefit arrangements.
Reciprocal coverage arrangements.
Employing unit records and reports—Unified business identifier account number records.
Arbitrary reports.
Interstate use of employing unit records.
Compulsory production of records and information.
Protection against self-incrimination.
Oaths and witnesses.
Destruction of office records.
Representation by attorney general.
Publication of title, rules and regulations, etc.
Services and fees of sheriffs.
State-federal cooperation.
Employment stabilization.
State advisory council—Committees and councils.
Employment services for handicapped—Report to legislative
committees.
Penalties for late reports or contributions—Assessment—
Appeal.
Job skills training program—Department's duties.
Washington conservation corps—Department's duties.
On-the-job training—Employer qualifications established by
rule.
Cooperation with work force training and education coordinating board.
Information clearinghouse to assist in employment of persons
of disability.
Information clearinghouse—Consultation on establishment.
Displaced workers account—Compensation and retraining
after thermal electric generation facility's cessation of operation.
Administration of OASI plans for members of teachers' retirement and state
employees' retirement systems: Chapters 41.33, 41.41 RCW.
50.12.042
excess of the then current contributions, which reserve shall
be set up by the commissioner in accordance with accepted
actuarial principles on the basis of statistics of employment,
business activity, and other relevant factors for the longest
possible period. Whenever the commissioner believes that a
change in contribution or benefit rates will become necessary
to protect the solvency of the fund, he shall promptly so
inform the governor and legislature and make recommendations with respect thereto. [1977 c 75 § 75; 1955 c 286 § 1;
1949 c 214 § 7; 1945 c 35 § 40; Rem. Supp. 1949 § 9998-178.
Prior: 1943 c 127 § 8; 1941 c 253 § 8; 1939 c 12 § 2.]
50.12.020
50.12.020 Personnel appointed by commissioner.
The commissioner is authorized to appoint and fix the compensation of such officers, accountants, experts, and other
personnel as may be necessary to carry out the provisions of
this title: PROVIDED, That such appointment shall be made
on a nonpartisan merit basis in accordance with the provisions of this title relating to the selection of personnel. The
commissioner may delegate to any person appointed such
power and authority as the commissioner deems reasonable
and proper for the effective administration of this title,
including the right to decide matters placed in the commissioner's discretion under this title, and may in his or her discretion bond any person handling moneys or signing checks
hereunder. [1985 c 96 § 1; 1973 1st ex.s. c 158 § 2; 1945 c 35
§ 41; Rem. Supp. 1945 § 9998-179. Prior: 1943 c 127 § 8;
1941 c 253 § 8; 1939 c 214 § 9; 1937 c 162 § 11.]
Effective date—1973 1st ex.s. c 158: See note following RCW
50.08.020.
50.12.031
50.12.031 Personnel board—Travel expenses of
board. Members of the board shall be allowed travel
expenses in accordance with RCW 43.03.050 and 43.03.060
as now existing or hereafter amended while traveling to and
from and attending regularly called meetings. [1975-'76 2nd
ex.s. c 34 § 148; 1959 c 127 § 2.]
Effective date—Severability—1975-'76 2nd ex.s. c 34: See notes following RCW 2.08.115.
Merit system: Chapter 41.06 RCW.
50.12.040
50.12.010
50.12.010 Commissioner's duties and powers. The
commissioner shall administer this title. He shall have the
power and authority to adopt, amend, or rescind such rules
and regulations, to employ such persons, make such expenditures, require such reports, make such investigations, and
take such other action as he deems necessary or suitable to
that end. Such rules and regulations shall be effective upon
publication and in the manner, not inconsistent with the provisions of this title, which the commissioner shall prescribe.
The commissioner, in accordance with the provisions of this
title, shall determine the organization and methods of procedure of the divisions referred to in this title, and shall have an
official seal which shall be judicially noticed. The commissioner shall submit to the governor a report covering the
administration and operation of this title during the preceding
fiscal year, July 1 through June 30, and shall make such recommendations for amendments to this title as he deems
proper. Such report shall include a balance sheet of the moneys in the fund in which there shall be provided, if possible, a
reserve against the liability in future years to pay benefits in
(2004 Ed.)
50.12.040 Rule-making authority. Permanent and
emergency rules shall be adopted, amended, or repealed by
the commissioner in accordance with the provisions of Title
34 RCW and the rules adopted pursuant thereto: PROVIDED, That the commissioner may not adopt rules after
July 23, 1995, that are based solely on a section of law stating
a statute's intent or purpose, on the enabling provisions of the
statute establishing the agency, or on any combination of
such provisions, for statutory authority to adopt any rule.
[1995 c 403 § 109; 1973 1st ex.s. c 158 § 3; 1945 c 35 § 43;
Rem. Supp. 1945 § 9998-181. Prior: 1943 c 127 § 8; 1941 c
253 § 8; 1939 c 214 § 9; 1937 c 162 § 11.]
Findings—Short title—Intent—1995 c 403: See note following RCW
34.05.328.
Part headings not law—Severability—1995 c 403: See RCW
43.05.903 and 43.05.904.
Effective date—1973 1st ex.s. c 158: See note following RCW
50.08.020.
50.12.042
50.12.042 Rules—2003 2nd sp.s. c 4. The commissioner of the employment security department may adopt
[Title 50 RCW—page 17]
50.12.045
Title 50 RCW: Unemployment Compensation
such rules as are necessary to implement chapter 4, Laws of
2003 2nd sp. sess. [2003 2nd sp.s. c 4 § 34.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
50.12.045 Contract to issue conditional federal
employer identification numbers, credentials, and documents in conjunction with license applications. The commissioner may contract with the federal internal revenue service, or other appropriate federal agency, to issue conditional
federal employer identification numbers, or other federal credentials or documents, at specified offices and locations of
the agency in conjunction with any application for state
licenses under chapter 19.02 RCW. [1997 c 51 § 5.]
accordance with arrangements made pursuant to the provisions of this section. [1977 ex.s. c 292 § 9; 1971 c 3 § 11;
1959 c 266 § 1; 1949 c 214 § 8; 1945 c 35 § 44; Rem. Supp.
1949 § 9998-182. Prior: 1943 c 127 § 8; 1941 c 253 § 8; 1939
c 214 § 9; 1937 c 162 § 11.]
50.12.045
Intent—1997 c 51: See note following RCW 19.02.300.
50.12.050 Reciprocal benefit arrangements. As used
in this section the terms "other state" and "another state" shall
be deemed to include any state or territory of the United
States, the District of Columbia, the Commonwealth of
Puerto Rico and any foreign government and, where applicable, shall also be deemed to include the federal government
or provisions of a law of the federal government, as the case
may be.
As used in this section the term "claim" shall be deemed
to include whichever of the following terms is applicable, to
wit: "Application for initial determination", "claim for waiting period credit", or "claim for benefits".
The commissioner shall enter into an agreement with any
other state whereby in the event an individual files a claim in
another state against wages earned in employment in this
state, or against wage credits earned in this state and in any
other state or who files a claim in this state against wage credits earned in employment in any other state, or against wages
earned in this state and in any other state, the claim will be
paid by this state or another state as designated by the agreement in accordance with a determination on the claim as provided by the agreement and pursuant to the qualification and
disqualification provisions of this title or under the provisions
of the law of the designated paying state (including another
state) or under such a combination of the provisions of both
laws as shall be determined by the commissioner as being fair
and reasonable to all affected interests, and whereby the
wages of such individual, if earned in two or more states
(including another state) may be combined, and further,
whereby this state or another state shall reimburse the paying
state in an amount which shall bear the same ratio to the
amount of benefits already paid as the amount of wage credits
transferred by this state or another state, and used in the determination, bear to the total wage credits used in computing the
claimant's maximum amount of benefits potentially payable.
Whenever any claim is filed by an individual involving
the combination of wages or a reciprocal arrangement for the
payment of benefits, which is governed by the provisions of
this section, the employment security department of this
state, when not designated as the paying state, shall promptly
make a report to the other state making the determination,
showing wages earned in employment in this state.
The commissioner is hereby authorized to make to
another state and to receive from another state reimbursements from or to the unemployment compensation fund in
50.12.050
[Title 50 RCW—page 18]
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
Construction—Compliance with federal act—1971 c 3: See RCW
50.44.080.
50.12.060
50.12.060 Reciprocal coverage arrangements. The
commissioner is hereby authorized to enter into arrangements
with the appropriate agencies of other states, foreign governments or the federal government whereby services performed
by an individual for a single employing unit for which services are customarily performed in more than one state shall
be deemed to be services performed entirely within any one
of the states (1) in which any part of such individual's service
is performed, or (2) in which such individual has his residence, or (3) in which the employing unit maintains a place of
business: PROVIDED, That there is in effect, as to such services, an election by the employing unit with the acquiescence of such individual, approved by the agency charged
with the administration of such state's unemployment compensation law, pursuant to which all the services performed
by such individual for such employing unit are deemed to be
performed entirely within such state. [1945 c 35 § 45; Rem.
Supp. 1945 § 9998-183. Prior: 1943 c 127 § 8; 1941 c 253 §
8; 1939 c 214 § 9; 1937 c 162 § 11.]
50.12.070
50.12.070 Employing unit records and reports—Unified business identifier account number records. (1)(a)
Each employing unit shall keep true and accurate work
records, containing such information as the commissioner
may prescribe. Such records shall be open to inspection and
be subject to being copied by the commissioner or his or her
authorized representatives at any reasonable time and as
often as may be necessary. The commissioner may require
from any employing unit any sworn or unsworn reports with
respect to persons employed by it, which he or she deems
necessary for the effective administration of this title.
(b) An employer who contracts with another person or
entity for work subject to chapter 18.27 or 19.28 RCW shall
obtain and preserve a record of the unified business identifier
account number for the person or entity performing the work.
Failure to obtain or maintain the record is subject to RCW
39.06.010 and to a penalty determined by the commissioner,
but not to exceed two hundred fifty dollars, to be collected as
provided in RCW 50.24.120.
(2)(a) Each employer shall make periodic reports at such
intervals as the commissioner may by regulation prescribe,
setting forth the remuneration paid for employment to workers in its employ, the names of all such workers, and until
April 1, 1978, the number of weeks for which the worker
earned the "qualifying weekly wage", and beginning July 1,
1977, the hours worked by each worker and such other information as the commissioner may by regulation prescribe.
(b) If the employing unit fails or has failed to report the
number of hours in a reporting period for which a worker
worked, such number will be computed by the commissioner
and given the same force and effect as if it had been reported
(2004 Ed.)
Administration
by the employing unit. In computing the number of such
hours worked the total wages for the reporting period, as
reported by the employing unit, shall be divided by the dollar
amount of the state's minimum wage in effect for such reporting period and the quotient, disregarding any remainder, shall
be credited to the worker: PROVIDED, That although the
computation so made will not be subject to appeal by the
employing unit, monetary entitlement may be redetermined
upon request if the department is provided with credible evidence of the actual hours worked. [1997 c 54 § 2; 1983 1st
ex.s. c 23 § 8; 1977 ex.s. c 33 § 3; 1975 1st ex.s. c 228 § 2;
1945 c 35 § 46; Rem. Supp. 1945 § 9998-184. Prior: 1943 c
127 § 8; 1939 c 214 § 9; 1937 c 162 § 11.]
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
Effective dates—Construction—1977 ex.s. c 33: See notes following
RCW 50.04.030.
Effective date—1975 1st ex.s. c 228: See note following RCW
50.04.355.
50.12.080
50.12.080 Arbitrary reports. If any employing unit
fails to make or file any report or return required by this title,
or any regulation made pursuant hereto, the commissioner
may, upon the basis of such knowledge as may be available
to him, arbitrarily make a report on behalf of such employing
unit and the report so made shall be deemed to be prima facie
correct. In any action or proceedings brought for the recovery
of contributions, interest, or penalties due upon the payroll of
an employer, the certificate of the department that an audit
has been made of the payroll of such employer pursuant to
the direction of the department, or a certificate that a return
has been filed by or for an employer or estimated by reason of
lack of a return, shall be prima facie evidence of the amount
of such payroll for the period stated in the certificate. [1983
1st ex.s. c 23 § 9; 1951 c 215 § 2; 1945 c 35 § 47; Rem. Supp.
1945 § 9998-185. Prior: 1943 c 127 § 8.]
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
50.12.090
50.12.090 Interstate use of employing unit records.
The records of an employer maintained in this state pertaining to employment of persons in another state shall be open to
representatives of the commissioner to permit cooperation
with other state unemployment compensation agencies in
ascertaining information necessary to administer the unemployment compensation acts of such other states. [1945 c 35
§ 48; Rem. Supp. 1945 § 9998-186.]
50.12.100
50.12.100 Compulsory production of records and
information. In case of contumacy or refusal to obey subpoenas issued to any person, any court of the state within the
jurisdiction of which the inquiry is carried on, or within the
jurisdiction of which said person guilty of contumacy or
refusal to obey is found or resides or transacts business, upon
application by any duly authorized representative of the commissioner, shall have jurisdiction to issue to such person an
order requiring such person to appear before such authorized
representative, there to produce evidence, if so ordered, or
there to give testimony touching the matter under investigation, or in question. Failure to obey such order of the court
may be punished by said court as a contempt thereof. [1945
(2004 Ed.)
50.12.150
c 35 § 49; Rem. Supp. 1945 § 9998-187. Prior: 1939 c 214 §
9; 1937 c 162 § 11.]
50.12.120
50.12.120 Protection against self-incrimination. No
person shall be excused from attending and testifying or from
producing books, papers, correspondence, memoranda, and
other records before any duly authorized representative of the
commissioner or any appeal tribunal in obedience to the subpoena of such representative of the commissioner or such
appeal tribunal, on the ground that the testimony or evidence,
documentary or otherwise, required of him may tend to
incriminate him or subject him to a penalty or forfeiture; but
no individual shall be prosecuted or subjected to any penalty
or forfeiture for or on account of any transaction, matter, or
thing concerning which he is compelled, after having claimed
his privilege against self-incrimination, to testify or produce
evidence, documentary or otherwise, except that such individual so testifying shall not be exempt from prosecution and
punishment for perjury committed in so testifying. [1945 c
35 § 51; Rem. Supp. 1945 § 9998-189. Prior: 1943 c 127 § 8;
1939 c 214 § 9; 1937 c 162 § 11.]
50.12.130
50.12.130 Oaths and witnesses. In the discharge of the
duties imposed by this title, the appeal tribunal and any duly
authorized representative of the commissioner shall have
power to administer oaths and affirmations, take depositions,
certify to official acts and issue subpoenas to compel the
attendance of witnesses and the production of books, papers,
correspondence, memoranda, and other records deemed to be
necessary as evidence in connection with any dispute or the
administration of this title. It shall be unlawful for any person, without just cause, to fail to comply with subpoenas
issued pursuant to the provisions of this section. [1945 c 35
§ 52; Rem. Supp. 1945 § 9998-190. Prior: 1943 c 127 § 8;
1941 c 253 § 8; 1939 c 214 § 9; 1937 c 162 § 11.]
50.12.140
50.12.140 Destruction of office records. The commissioner may destroy any form, claim, ledger, check, letter, or
other record of the employment security department at the
expiration of three years after such record was originated by
or filed with the employment security department, except that
warrants and claims, claim determination, employer liability
forms and contribution reports may be destroyed at the expiration of six years after such form is originated by or filed
with the employment security department, and except that
this section shall not apply to records pertaining to grants,
accounts or expenditures for administration, records of the
unemployment compensation fund and the unemployment
compensation administration fund. [1947 c 215 § 11; 1945 c
35 § 53; Rem. Supp. 1947 § 99998-191.]
Preservation and destruction of public records: Chapter 40.14 RCW.
50.12.150
50.12.150 Representation by attorney general. The
attorney general shall be the general counsel of each and all
divisions and departments under this title and it shall be his
duty to institute and prosecute all actions and proceedings
which may be necessary in the enforcement and carrying out
of each, every, and all of the provisions of this title, and it
shall be the duty of the attorney general to assign such assistants and attorneys as may be necessary to the exclusive duty
[Title 50 RCW—page 19]
50.12.160
Title 50 RCW: Unemployment Compensation
of assisting each, every, and all divisions and departments
created under this title in the enforcement of this title. The
salaries of such assistants shall be paid out of the unemployment compensation administration fund, together with their
expenses fixed by the attorney general and allowed by the
treasurer of the unemployment compensation administration
fund when approved upon vouchers by the attorney general.
[1945 c 35 § 54; Rem. Supp. 1945 § 9998-192. Prior: 1937 c
162 § 17.]
Attorney general: Chapter 43.10 RCW.
50.12.160
50.12.160 Publication of title, rules and regulations,
etc. The commissioner may cause to be printed for distribution to the public the text of this title, the regulations and general rules, and other material which he deems relevant and
suitable. [1977 c 75 § 76; 1945 c 35 § 55; Rem. Supp. 1945
§ 9998-193.]
50.12.170
50.12.170 Services and fees of sheriffs. The sheriff of
any county, upon request of the commissioner or his duly
authorized representative, or upon request of the attorney
general, shall, for and on behalf of the commissioner, perform the functions of service, distraint, seizure, and sale,
authority for which is granted to the commissioner or his duly
authorized representative. No bond shall be required by the
sheriff of any county for services rendered for the commissioner, his duly authorized representative, or the attorney
general. The sheriff shall be allowed such fees as may be prescribed for like or similar official services. [1945 c 35 § 56;
Rem. Supp. 1945 § 9998-194.]
County sheriff: Chapter 36.28 RCW.
The commissioner shall comply with such provisions as
the social security board, created by the social security act,
approved August 14, 1935, as amended, may from time to
time require, regarding reports and the correctness and verification thereof, and shall comply with the regulations of the
social security board governing the expenditures of such
sums as may be allotted and paid to this state under Title III
of the social security act for the purpose of assisting the
administration of this title. The commissioner may afford reasonable cooperation with every agency of the United States
charged with the administration of any unemployment insurance law.
The governor is authorized to apply for an advance to the
state unemployment fund and to accept the responsibility for
the repayment of such advance in accordance with the conditions specified in Title XII of the social security act, as
amended, in order to secure to this state and its citizens the
advantages available under the provisions of such title.
The commissioner is also authorized and empowered to
take such steps, not inconsistent with law, as may be necessary for the purpose of procuring for the people of this state
all of the benefits and assistance, financial and otherwise,
provided, or to be provided for, by or pursuant to any act of
congress.
Upon request therefor the commissioner shall furnish to
any agency of the United States charged with the administration of public works or assistance through public employment, the name, address, ordinary occupation, and employment status of each recipient of benefits and such recipient's
rights to further benefits under this title. [1973 1st ex.s. c 158
§ 4; 1959 c 266 § 2; 1945 c 35 § 57; Rem. Supp. 1945 § 9998195. Prior: 1943 c 127 § 8; 1941 c 253 § 8; 1939 c 214 § 9;
1937 c 162 § 11.]
50.12.180
50.12.180 State-federal cooperation. The commissioner, through the Washington state employment service
division, shall establish and maintain free public employment
offices in such places as may be necessary for the proper
administration of this title and for the purpose of performing
such duties as are within the purview of the act of congress
entitled "An Act to provide for the establishment of a national
employment system and for other purposes," approved June
6, 1933 (48 Stat. 113; U.S.C. Title 29, Sec. 49(c), as
amended).
In the administration of this title the commissioner shall
cooperate to the fullest extent consistent with the provisions
of this title, with any official or agency of the United States
having powers or duties under the provisions of the said act
of congress, as amended, and to do and perform all things
necessary to secure to this state the benefits of the said act of
congress, as amended, in the promotion and maintenance of a
system of public employment offices. The provisions of the
said act of congress, as amended, are hereby accepted by this
state, in conformity with section 4 of said act and there shall
be observance of and compliance with the requirements
thereof. The commissioner may cooperate with or enter into
agreements with the railroad retirement board with respect to
the establishment, maintenance, and use of free employment
service facilities, and make available to said board the state's
records relating to the administration of this title, and furnish
such copies thereof, at the expense of the board, as it may
deem necessary for its purposes.
[Title 50 RCW—page 20]
Effective date—1973 1st ex.s. c 158: See note following RCW
50.08.020.
50.12.190 Employment stabilization. The commissioner shall take all appropriate steps to reduce and prevent
unemployment; to encourage and assist in the adoption of
practical methods of vocational training, retraining and vocational guidance; to investigate, recommend, advise, and assist
in the establishment and operation by municipalities, counties, school districts, and the state, of reserves for public
works to be used in times of business depression and unemployment; to promote the reemployment of unemployed
workers throughout the state in every other way that may be
feasible; and to these ends to carry and publish the results of
investigations and research studies. [1945 c 35 § 58; Rem.
Supp. 1945 § 9998-197. Prior: 1943 c 127 § 8; 1941 c 253 §
8; 1939 c 214 § 9; 1937 c 162 § 11.]
50.12.190
50.12.200 State advisory council—Committees and
councils. The commissioner shall appoint a state advisory
council composed of not more than nine men and women, of
which three shall be representatives of employers, three shall
be representatives of employees, and three shall be representatives of the general public. Such council shall aid the commissioner in formulating policies and discussing problems
related to the administration of this title and of assuring
impartiality and freedom from political influence in the solution of such problems. The council shall serve without com50.12.200
(2004 Ed.)
Administration
pensation. The commissioner may also appoint committees,
and industrial or other special councils, to perform appropriate services. Advisory council members shall be reimbursed
for travel expenses incurred in accordance with RCW
43.03.050 and 43.03.060 as now existing or hereafter
amended. [1982 1st ex.s. c 18 § 1; 1975-'76 2nd ex.s. c 34 §
149; 1953 ex.s. c 8 § 4; 1947 c 215 § 12; 1945 c 35 § 59; Rem.
Supp. 1947 § 9998-197. Prior: 1941 c 253 § 17.]
Severability—1982 1st ex.s. c 18: "If any provision of this act or its
application to any person or circumstance is held invalid, the remainder of
the act or the application of the provision to other persons or circumstances
is not affected." [1982 1st ex.s. c 18 § 22.]
Conflict with federal requirements—1982 1st ex.s. c 18: "If any part
of this act is found to be in conflict with federal requirements which are a
prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is hereby declared to be inoperative solely to the
extent of the conflict and with respect to the agencies directly affected, and
such finding or determination shall not affect the operation of the remainder
of this act in its application to the agencies concerned. The rules under this
act shall meet federal requirements which are a necessary condition to the
receipt of federal funds by the state." [1982 1st ex.s. c 18 § 21.]
Effective date—Severability—1975-'76 2nd ex.s. c 34: See notes following RCW 2.08.115.
50.12.210
50.12.210 Employment services for handicapped—
Report to legislative committees. It is the policy of the state
of Washington that persons with physical, mental, or sensory
handicaps shall be given equal opportunities in employment.
The legislature recognizes that handicapped persons have
faced unfair discrimination in employment.
For these reasons, the state employment service division
of the employment security department shall give particular
and special attention service to those persons with physical,
mental, or sensory handicaps which substantially limit one or
more of their major life functions as defined under P.L. 93112 and rules promulgated thereunder. Particular and special
attention service shall include but not be limited to particular
and special attention in counseling, referral, notification of
job listings in advance of other persons, and other services of
the employment service division.
Nothing in this section shall be construed so as to affect
the veteran's preference or any other requirement of the
United States department of labor.
The employment security department shall report to the
house and senate commerce and labor committees by December 1, 1987, on its accomplishments under this section and on
its future plans for implementation of this section. The
department shall report to the above mentioned committees
every odd-numbered year thereafter on its actions under this
section.
The employment security department shall establish
rules to implement this section. [1987 c 76 § 1; 1977 ex.s. c
273 § 1.]
50.12.220
50.12.220 Penalties for late reports or contributions—Assessment—Appeal. (1)(a) If an employer fails to
file in a timely and complete manner a report required by
RCW 50.12.070, or the rules adopted pursuant thereto, the
employer shall be subject to a penalty to be determined by the
commissioner, but not to exceed two hundred fifty dollars or
ten percent of the quarterly contributions for each such
offense, whichever is less.
(2004 Ed.)
50.12.220
(b) If an employer knowingly misrepresents to the
employment security department the amount of his or her
payroll upon which contributions under this title are based,
the employer shall be liable to the state for up to ten times the
amount of the difference in contributions paid, if any, and the
amount the employer should have paid and for the reasonable
expenses of auditing his or her books and collecting such
sums. Such liability may be enforced in the name of the
department.
(c) If any part of a delinquency for which an assessment
is made under this title is due to an intent to evade the successorship provisions of RCW 50.29.062, then for the calendar
year in which the commissioner makes the determination
under this subsection, the commissioner shall assign to the
employer, and to any business found to be promoting the evasion of such provisions, the contribution rate determined for
that calendar year under RCW 50.29.025, including the solvency surcharge, if any, for rate class 20 or rate class 40, as
applicable, plus two percent.
(2) If contributions are not paid on the date on which
they are due and payable as prescribed by the commissioner,
there shall be assessed a penalty of five percent of the amount
of the contributions for the first month or part thereof of
delinquency; there shall be assessed a total penalty of ten percent of the amount of the contributions for the second month
or part thereof of delinquency; and there shall be assessed a
total penalty of twenty percent of the amount of the contributions for the third month or part thereof of delinquency. No
penalty so added shall be less than ten dollars. These penalties are in addition to the interest charges assessed under
RCW 50.24.040.
(3) Penalties shall not accrue on contributions from an
estate in the hands of a receiver, executor, administrator,
trustee in bankruptcy, common law assignee, or other liquidating officer subsequent to the date when such receiver,
executor, administrator, trustee in bankruptcy, common law
assignee, or other liquidating officer qualifies as such, but
contributions accruing with respect to employment of persons by a receiver, executor, administrator, trustee in bankruptcy, common law assignee, or other liquidating officer
shall become due and shall be subject to penalties in the same
manner as contributions due from other employers.
(4) Where adequate information has been furnished to
the department and the department has failed to act or has
advised the employer of no liability or inability to decide the
issue, penalties shall be waived by the commissioner. Penalties may also be waived for good cause if the commissioner
determines that the failure to timely file reports or pay contributions was not due to the employer's fault.
(5) Any decision to assess a penalty as provided by this
section shall be made by the chief administrative officer of
the tax branch or his or her designee.
(6) Nothing in this section shall be construed to deny an
employer the right to appeal the assessment of any penalty.
Such appeal shall be made in the manner provided in RCW
50.32.030. [2004 c 97 § 1; 2003 2nd sp.s. c 4 § 22; 1987 c
111 § 2; 1979 ex.s. c 190 § 1.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Conflict with federal requirements—1987 c 111: "If any part of this
act is found to be in conflict with federal requirements which are a prescribed
[Title 50 RCW—page 21]
50.12.230
Title 50 RCW: Unemployment Compensation
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1987 c 111 § 10.]
Severability—1987 c 111: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1987 c 111 § 11.]
employment, and economic participation of persons of disability." [1987 c
369 § 1.]
50.12.252
50.12.252 Information clearinghouse—Consultation
on establishment. In establishing the information clearinghouse, the employment security department shall consult
with organizations of private sector employers and persons of
disability. [1987 c 369 § 3.]
Legislative finding—1987 c 369: See note following RCW 50.12.250.
50.12.280
Effective date—1987 c 111: "This act shall take effect July 1, 1987.
Sections 2 and 8 of this act shall be effective for quarters beginning on and
after July 1, 1987." [1987 c 111 § 12.]
50.12.230
50.12.230 Job skills training program—Department's duties. See RCW 28C.04.400 through 28C.04.420.
50.12.235
50.12.235 Washington conservation corps—Department's duties. See chapter 43.220 RCW.
50.12.240
50.12.240 On-the-job training—Employer qualifications established by rule. The commissioner may establish
by rule qualifications for employers who agree to provide onthe-job training for new employees. [1985 c 299 § 2.]
50.12.245
50.12.245 Cooperation with work force training and
education coordinating board. The commissioner shall
cooperate with the work force training and education coordinating board in the conduct of the board's responsibilities
under RCW 28C.18.060 and shall provide information and
data in a format that is accessible to the board. [1991 c 238 §
80.]
Effective dates—Severability—1991 c 238: See RCW 28B.50.917
and 28B.50.918.
50.12.280 Displaced workers account—Compensation and retraining after thermal electric generation facility's cessation of operation. The displaced workers account
is established. All moneys from RCW 82.32.393 must be
deposited into the account. Moneys in the account may be
spent only after appropriation. Expenditures from the account
may be used only to provide for compensation and retraining
of displaced workers of the thermal electric generation facility and of the coal mine that supplied coal to the facility. The
benefits from the account are in addition to all other compensation and retraining benefits to which the displaced workers
are entitled under existing state law. The employment security department shall administer the distribution of moneys
from the account. [1997 c 368 § 13.]
Findings—Intent—Rules adoption—Severability—Effective date—
1997 c 368: See notes following RCW 82.08.810.
Chapter 50.13 RCW
RECORDS AND INFORMATION—PRIVACY
AND CONFIDENTIALITY
Chapter 50.13
Sections
50.13.010
50.13.015
50.13.020
50.12.250
50.12.250 Information clearinghouse to assist in
employment of persons of disability. The employment
security department shall establish an information clearinghouse for use by persons of disability and governmental and
private employers. The services of the clearinghouse shall
include:
(1) Provision of information on private and state services
available to assist persons of disability in their training and
employment needs;
(2) Provision of information on private, state, and federal
incentive programs and services available to employers of
persons of disability; and
(3) Publication of a comprehensive list of programs and
services in subsections (1) and (2) of this section. [1987 c
369 § 2.]
Legislative finding—1987 c 369: "The legislature finds that improving
the economic status of persons of disability, the state's largest social minority
with over four hundred thousand people, will require active state involvement. Persons of disability suffer unemployment at almost twice the rate and
experience poverty at more than twice the rate of the general population.
Employers have experienced confusion about the variety of employment services available to them. Optimum service from, and access to, the state's
training and placement programs for persons of disability requires coordination and a clear focus on the stated needs of persons of disability and their
prospective employers. It is the purpose of this chapter to guarantee that representatives of the disability community, labor, and the private sector have
an institutionalized means of meeting their respective needs in the training,
[Title 50 RCW—page 22]
50.13.030
50.13.040
50.13.050
50.13.060
50.13.070
50.13.080
50.13.090
50.13.100
50.13.900
50.13.905
50.13.910
Legislative intent and recognition.
Information held private and confidential—Requests for disclosure.
Information or records deemed private and confidential—
Exceptions.
Rules.
Access of individual or employing unit to records and information.
Access to records or information by interested party in proceeding before appeal tribunal or commissioner—Decisions
not private and confidential, exception.
Access to records or information by governmental agencies.
Availability of records or information to parties to judicial or
administrative proceedings—Discovery proceedings—Subpoenas.
Disclosure of records or information to private persons or
organizations contracting to assist in operation and management of department—Penalties.
Disclosure of records or information to contracting governmental or private organizations.
Disclosure of records or information where identifying details
deleted or individual or employing unit consents.
Construction.
Severability—1977 ex.s. c 153.
Legislative designation and placement.
50.13.010
50.13.010 Legislative intent and recognition. This
chapter is intended to reconcile the free access to public
records granted by the open government act and the discovery rights of judicial and administrative systems with the historical confidentiality of certain records of the department of
employment security and the individual's right of privacy as
acknowledged by the open government act.
The legislature recognizes that records and information
held by the department of employment security could be mis(2004 Ed.)
Records and Information—Privacy and Confidentiality
used. Therefore, this chapter defines a right of privacy and
confidentiality as regards individual and employing unit
records maintained by the department of employment security. The legislature further recognizes that there are situations where this right of privacy and confidentiality is outweighed by other considerations. Therefore, this chapter also
defines certain exceptions to the right of privacy and confidentiality. [1977 ex.s. c 153 § 1.]
50.13.015
50.13.015 Information held private and confidential—Requests for disclosure. (1) If information provided
to the department by another governmental agency is held
private and confidential by state or federal laws, the department may not release such information.
(2) Information provided to the department by another
governmental entity conditioned upon privacy and confidentiality is to be held private and confidential according to the
agreement between the department and other governmental
agency.
(3) The department may hold private and confidential
information obtained for statistical analysis, research, or
study purposes if the information was supplied voluntarily,
conditioned upon maintaining confidentiality of the information.
(4) Persons requesting disclosure of information held by
the department under subsection (1) or (2) of this section
shall request such disclosure from the agency providing the
information to the department rather than from the department.
(5) This section supersedes any provisions of chapter
42.17 RCW to the contrary. [1989 c 92 § 3.]
50.13.020
50.13.020 Information or records deemed private
and confidential—Exceptions. Any information or records
concerning an individual or employing unit obtained by the
department of employment security pursuant to the administration of this title or other programs for which the department has responsibility shall be private and confidential,
except as otherwise provided in this chapter. This chapter
does not create a rule of evidence. Information or records
may be released by the department of employment security
when the release is:
(1) Required by the federal government in connection
with, or as a condition of funding for, a program being
administered by the department; or
(2) Requested by a county clerk for the purposes of
RCW 9.94A.760.
The provisions of RCW 50.13.060 (1) (a), (b) and (c)
will not apply to such release. [2004 c 121 § 5; 1981 c 35 §
2; 1977 ex.s. c 153 § 2.]
Effective dates—Severability—1981 c 35: See notes following RCW
50.22.030.
50.13.030
50.13.030 Rules. The commissioner of the department
of employment security shall have the authority to adopt,
amend, or rescind rules interpreting and implementing the
provisions of this chapter. In particular, these rules shall
specify the procedure to be followed to obtain information or
records to which the public has access under this chapter or
chapter 42.17 RCW. [1977 ex.s. c 153 § 3.]
(2004 Ed.)
50.13.060
50.13.040
50.13.040 Access of individual or employing unit to
records and information. (1) An individual shall have
access to all records and information concerning that individual held by the department of employment security, unless
the information is exempt from disclosure under RCW
42.17.310.
(2) An employing unit shall have access to its own
records and to any records and information relating to a benefit claim by an individual if the employing unit is either the
individual's last employer or is the individual's base year
employer.
(3) An employing unit shall have access to any records
and information relating to any decision to allow or deny benefits if:
(a) The decision is based on employment or an offer of
employment with the employing unit; or
(b) If the decision is based on material information provided by the employing unit.
(4) An employing unit shall have access to general summaries of benefit claims by individuals whose benefits are
chargeable to the employing unit's experience rating or reimbursement account. [1993 c 483 § 6; 1977 ex.s. c 153 § 4.]
Conflict with federal requirements—Severability—1993 c 483: See
notes following RCW 50.04.293.
50.13.050
50.13.050 Access to records or information by interested party in proceeding before appeal tribunal or commissioner—Decisions not private and confidential, exception. (1) Any interested party, as defined by rule, in a proceeding before the appeal tribunal or commissioner shall
have access to any information or records deemed private and
confidential under this chapter if the information or records
are material to the issues in that proceeding.
(2) No decisions by the commissioner or the appeals tribunal shall be deemed private and confidential under this
chapter unless the decisions are based on information
obtained in a closed hearing. [1977 ex.s. c 153 § 5.]
50.13.060
50.13.060 Access to records or information by governmental agencies. (1) Governmental agencies, including
law enforcement agencies, prosecuting agencies, and the
executive branch, whether state, local, or federal shall have
access to information or records deemed private and confidential under this chapter if the information or records are
needed by the agency for official purposes and:
(a) The agency submits an application in writing to the
employment security department for the records or information containing a statement of the official purposes for which
the information or records are needed and specific identification of the records or information sought from the department; and
(b) The director, commissioner, chief executive, or other
official of the agency has verified the need for the specific
information in writing either on the application or on a separate document; and
(c) The agency requesting access has served a copy of
the application for records or information on the individual or
employing unit whose records or information are sought and
has provided the department with proof of service. Service
shall be made in a manner which conforms to the civil rules
for superior court. The requesting agency shall include with
[Title 50 RCW—page 23]
50.13.060
Title 50 RCW: Unemployment Compensation
the copy of the application a statement to the effect that the
individual or employing unit may contact the public records
officer of the employment security department to state any
objections to the release of the records or information. The
employment security department shall not act upon the application of the requesting agency until at least five days after
service on the concerned individual or employing unit. The
employment security department shall consider any objections raised by the concerned individual or employing unit in
deciding whether the requesting agency needs the information or records for official purposes.
(2) The requirements of subsections (1) and (9) of this
section shall not apply to the state legislative branch. The
state legislature shall have access to information or records
deemed private and confidential under this chapter, if the legislature or a legislative committee finds that the information
or records are necessary and for official purposes. If the
employment security department does not make information
or records available as provided in this subsection, the legislature may exercise its authority granted by chapter 44.16
RCW.
(3) In cases of emergency the governmental agency
requesting access shall not be required to formally comply
with the provisions of subsection (1) of this section at the
time of the request if the procedures required by subsection
(1) of this section are complied with by the requesting agency
following the receipt of any records or information deemed
private and confidential under this chapter. An emergency is
defined as a situation in which irreparable harm or damage
could occur if records or information are not released immediately.
(4) The requirements of subsection (1)(c) of this section
shall not apply to governmental agencies where the procedures would frustrate the investigation of possible violations
of criminal laws or to the release of employing unit names,
addresses, number of employees, and aggregate employer
wage data for the purpose of state governmental agencies preparing small business economic impact statements under
chapter 19.85 RCW or preparing cost-benefit analyses under
RCW 34.05.328(1) (c) and (d). Information provided by the
department and held to be private and confidential under state
or federal laws must not be misused or released to unauthorized parties. A person who misuses such information or
releases such information to unauthorized parties is subject to
the sanctions in RCW 50.13.080.
(5) Governmental agencies shall have access to certain
records or information, limited to such items as names,
addresses, social security numbers, and general information
about benefit entitlement or employer information possessed
by the department, for comparison purposes with records or
information possessed by the requesting agency to detect
improper or fraudulent claims, or to determine potential tax
liability or employer compliance with registration and licensing requirements. In those cases the governmental agency
shall not be required to comply with subsection (1)(c) of this
section, but the requirements of the remainder of subsection
(1) of this section must be satisfied.
(6) Governmental agencies may have access to certain
records and information, limited to employer information
possessed by the department for purposes authorized in chapter 50.38 RCW. Access to these records and information is
[Title 50 RCW—page 24]
limited to only those individuals conducting authorized statistical analysis, research, and evaluation studies. Only in
cases consistent with the purposes of chapter 50.38 RCW are
government agencies not required to comply with subsection
(1)(c) of this section, but the requirements of the remainder of
subsection (1) of this section must be satisfied. Information
provided by the department and held to be private and confidential under state or federal laws shall not be misused or
released to unauthorized parties subject to the sanctions in
RCW 50.13.080.
(7) Disclosure to governmental agencies of information
or records obtained by the employment security department
from the federal government shall be governed by any applicable federal law or any agreement between the federal government and the employment security department where so
required by federal law. When federal law does not apply to
the records or information state law shall control.
(8) The department may provide information for purposes of statistical analysis and evaluation of the WorkFirst
program or any successor state welfare program to the department of social and health services, the office of financial
management, and other governmental entities with oversight
or evaluation responsibilities for the program in accordance
with RCW 43.20A.080. The confidential information provided by the department shall remain the property of the
department and may be used by the authorized requesting
agencies only for statistical analysis, research, and evaluation
purposes as provided in RCW 74.08A.410 and 74.08A.420.
The department of social and health services, the office of
financial management, or other governmental entities with
oversight or evaluation responsibilities for the program are
not required to comply with subsection (1)(c) of this section,
but the requirements of the remainder of subsection (1) of this
section and applicable federal laws and regulations must be
satisfied. The confidential information used for evaluation
and analysis of welfare reform supplied to the authorized
requesting entities with regard to the WorkFirst program or
any successor state welfare program are exempt from public
inspection and copying under RCW 42.17.310.
(9) The disclosure of any records or information by a
governmental agency which has obtained the records or
information under this section is prohibited unless the disclosure is directly connected to the official purpose for which the
records or information were obtained.
(10) In conducting periodic salary or fringe benefit studies pursuant to law, the department of personnel shall have
access to records of the employment security department as
may be required for such studies. For such purposes, the
requirements of subsection (1)(c) of this section need not
apply.
(11)(a) To promote the reemployment of job seekers, the
commissioner may enter into data-sharing contracts with
partners of the one-stop career development system. The
contracts shall provide for the transfer of data only to the
extent that the transfer is necessary for the efficient provisions of work force programs, including but not limited to
public labor exchange, unemployment insurance, worker
training and retraining, vocational rehabilitation, vocational
education, adult education, transition from public assistance,
and support services. The transfer of information under con(2004 Ed.)
Records and Information—Privacy and Confidentiality
tracts with one-stop partners is exempt from subsection (1)(c)
of this section.
(b) An individual who applies for services from the
department and whose information will be shared under (a)
of this subsection (11) must be notified that his or her private
and confidential information in the department's records will
be shared among the one-stop partners to facilitate the delivery of one-stop services to the individual. The notice must
advise the individual that he or she may request that private
and confidential information not be shared among the onestop partners and the department must honor the request. In
addition, the notice must:
(i) Advise the individual that if he or she requests that
private and confidential information not be shared among
one-stop partners, the request will in no way affect eligibility
for services;
(ii) Describe the nature of the information to be shared,
the general use of the information by one-stop partner representatives, and among whom the information will be shared;
(iii) Inform the individual that shared information will be
used only for the purpose of delivering one-stop services and
that further disclosure of the information is prohibited under
contract and is not subject to disclosure under RCW
42.17.310; and
(iv) Be provided in English and an alternative language
selected by the one-stop center or job service center as appropriate for the community where the center is located.
If the notice is provided in-person, the individual who
does not want private and confidential information shared
among the one-stop partners must immediately advise the
one-stop partner representative of that decision. The notice
must be provided to an individual who applies for services
telephonically, electronically, or by mail, in a suitable format
and within a reasonable time after applying for services,
which shall be no later than ten working days from the
department's receipt of the application for services. A onestop representative must be available to answer specific questions regarding the nature, extent, and purpose for which the
information may be shared.
(12) To facilitate improved operation and evaluation of
state programs, the commissioner may enter into data-sharing
contracts with other state agencies only to the extent that such
transfer is necessary for the efficient operation or evaluation
of outcomes for those programs. The transfer of information
by contract under this subsection is exempt from subsection
(1)(c) of this section.
(13) The misuse or unauthorized release of records or
information by any person or organization to which access is
permitted by this chapter subjects the person or organization
to a civil penalty of five thousand dollars and other applicable
sanctions under state and federal law. Suit to enforce this
section shall be brought by the attorney general and the
amount of any penalties collected shall be paid into the
employment security department administrative contingency
fund. The attorney general may recover reasonable attorneys'
fees for any action brought to enforce this section. [2003 c
165 § 3; 2000 c 134 § 2. Prior: 1997 c 409 § 605; 1997 c 58
§ 1004; 1996 c 79 § 1; 1993 c 281 § 59; 1981 c 177 § 1; 1979
ex.s. c 177 § 1; 1977 ex.s. c 153 § 6.]
Findings—2000 c 134: "The legislature finds that individuals in need
of employment and related services would be better served by integrating
(2004 Ed.)
50.13.070
employment and training services to form a comprehensive network of state
and local programs, called a one-stop career development system. Successful integration of employment and training services demands prompt and
efficient exchange of information among service providers. The legislature
further finds that efficient operation of state programs and their evaluation
demand at times information held by the employment security department.
Current restrictions on information exchange hamper this coordination,
resulting in increased administrative costs, reduced levels of service, and
fewer positive outcomes than could otherwise be achieved." [2000 c 134 §
1.]
Conflict with federal requirements—2000 c 134: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this
act. Rules adopted under this act must meet federal requirements that are a
necessary condition to the receipt of federal funds by the state or the granting
of federal unemployment tax credits to employers in this state." [2000 c 134
§ 4.]
Severability—2000 c 134: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [2000 c 134 § 5.]
Effective date—1997 c 409 § 605: "Section 605 of this act is necessary
for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes
effect immediately [May 19, 1997]." [1997 c 409 § 608.]
Part headings—Severability—1997 c 409: See notes following RCW
43.22.051.
Short title—Part headings, captions, table of contents not law—
Exemptions and waivers from federal law—Conflict with federal
requirements—Severability—1997 c 58: See RCW 74.08A.900 through
74.08A.904.
Conflict with federal requirements—1996 c 79: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1996 c 79 § 3.]
Effective date—1996 c 79: "This act shall take effect July 1, 1996."
[1996 c 79 § 4.]
Effective date—1993 c 281: See note following RCW 41.06.022.
50.13.070
50.13.070 Availability of records or information to
parties to judicial or administrative proceedings—Discovery proceedings—Subpoenas. Information or records
deemed private and confidential under this chapter shall be
available to parties to judicial or formal administrative proceedings only upon a finding by the presiding officer that the
need for the information or records in the proceeding outweighs any reasons for the privacy and confidentiality of the
information or records. Information or records deemed private and confidential under this chapter shall not be available
in discovery proceedings unless the court in which the action
has been filed has made the finding specified above. A judicial or administrative subpoena directed to the employment
security department must contain this finding. A subpoena
for records or information held by the department may be
directed to and served upon any employee of the department,
but the department may specify by rule which employee shall
produce the records or information in compliance with the
subpoena. [1977 ex.s. c 153 § 7.]
[Title 50 RCW—page 25]
50.13.080
Title 50 RCW: Unemployment Compensation
50.13.080 Disclosure of records or information to
private persons or organizations contracting to assist in
operation and management of department—Penalties.
(1) The employment security department shall have the right
to disclose information or records deemed private and confidential under this chapter to any private person or organization when such disclosure is necessary to permit private contracting parties to assist in the operation and management of
the department in instances where certain departmental functions may be delegated to private parties to increase the
department's efficiency or quality of service to the public.
The private persons or organizations shall use the information or records solely for the purpose for which the information was disclosed and shall be bound by the same rules of
privacy and confidentiality as employment security department employees.
(2) Nothing in this section shall be construed as limiting
or restricting the effect of RCW 42.17.260(9).
(3) The misuse or unauthorized release of records or
information deemed private and confidential under this chapter by any private person or organization to which access is
permitted by this section shall subject the person or organization to a civil penalty of five thousand dollars and other applicable sanctions under state and federal law. Suit to enforce
this section shall be brought by the attorney general and the
amount of any penalties collected shall be paid into the
employment security department administrative contingency
fund. The attorney general may recover reasonable attorneys'
fees for any action brought to enforce this section. [1996 c 79
§ 2; 1977 ex.s. c 153 § 8.]
50.13.080
Conflict with federal requirements—Effective date—1996 c 79: See
notes following RCW 50.13.060.
50.13.090
50.13.090 Disclosure of records or information to
contracting governmental or private organizations.
Where the employment security department contracts to provide services to other governmental or private organizations,
the department may disclose to those organizations information or records deemed private and confidential which have
been acquired in the performance of the department's obligations under the contracts. [1977 ex.s. c 153 § 9.]
50.13.100
50.13.100 Disclosure of records or information
where identifying details deleted or individual or employing unit consents. Nothing in this chapter shall prevent the
disclosure of information or records deemed private and confidential under this chapter if all details identifying an individual or employing unit are deleted or the individual or
employing unit consents to the disclosure. [1977 ex.s. c 153
§ 10.]
50.13.900
50.13.900 Construction. Any ambiguities in this chapter shall be construed in a manner consistent with federal
laws applying to the employment security department. If any
provision of this chapter or the application thereof is held
invalid by a final decision of any court or declared by the secretary of the department of labor of the United States to be
inconsistent with federal laws upon which funding of the
employment security department is contingent, the invalid or
inconsistent provision shall be ineffective only to the extent
necessary to insure compliance with the court decision or
[Title 50 RCW—page 26]
federal determination and the remainder of the chapter shall
be given full effect. [1977 ex.s. c 153 § 11.]
50.13.905 Severability—1977 ex.s. c 153. If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not
affected. [1977 ex.s. c 153 § 13.]
50.13.905
50.13.910 Legislative designation and placement.
Sections 1 through 11 of this act shall constitute a new chapter in Title 50 RCW and shall be designated as chapter 50.13
RCW. [1977 ex.s. c 153 § 14.]
50.13.910
Chapter 50.16
Chapter 50.16 RCW
FUNDS
Sections
50.16.010
50.16.015
50.16.020
50.16.030
50.16.040
50.16.050
50.16.060
50.16.070
50.16.080
Unemployment compensation fund—Administrative contingency fund—Federal interest payment fund.
Federal interest payment fund—Establishment.
Administration of funds—Accounts.
Withdrawals from federal unemployment trust fund.
Management of funds upon discontinuance of federal unemployment trust fund.
Unemployment compensation administration fund.
Replacement of federal funds.
Federal interest payment fund—Employer contributions—
When payable—Maximum rate—Deduction from remuneration unlawful.
Federal targeted jobs tax credit program—Administration—
Processing fee—Deposit of fees.
50.16.010 Unemployment compensation fund—
Administrative contingency fund—Federal interest payment fund. (1) There shall be maintained as special funds,
separate and apart from all public moneys or funds of this
state an unemployment compensation fund, an administrative
contingency fund, and a federal interest payment fund, which
shall be administered by the commissioner exclusively for
the purposes of this title, and to which RCW 43.01.050 shall
not be applicable.
(2)(a) The unemployment compensation fund shall consist of:
(i) All contributions collected under RCW 50.24.010 and
payments in lieu of contributions collected pursuant to the
provisions of this title;
(ii) Any property or securities acquired through the use
of moneys belonging to the fund;
(iii) All earnings of such property or securities;
(iv) Any moneys received from the federal unemployment account in the unemployment trust fund in accordance
with Title XII of the social security act, as amended;
(v) All money recovered on official bonds for losses sustained by the fund;
(vi) All money credited to this state's account in the
unemployment trust fund pursuant to section 903 of the
social security act, as amended;
(vii) All money received from the federal government as
reimbursement pursuant to section 204 of the federal-state
extended compensation act of 1970 (84 Stat. 708-712; 26
U.S.C. Sec. 3304); and
(viii) All moneys received for the fund from any other
source.
50.16.010
(2004 Ed.)
Funds
(b) All moneys in the unemployment compensation fund
shall be commingled and undivided.
(3)(a) Except as provided in (b) of this subsection, the
administrative contingency fund shall consist of:
(i) All interest on delinquent contributions collected pursuant to this title;
(ii) All fines and penalties collected pursuant to the provisions of this title;
(iii) All sums recovered on official bonds for losses sustained by the fund; and
(iv) Revenue received under RCW 50.24.014.
(b) All fees, fines, forfeitures, and penalties collected or
assessed by a district court because of the violation of this
title or rules adopted under this title shall be remitted as provided in chapter 3.62 RCW.
(c) Moneys available in the administrative contingency
fund, other than money in the special account created under
RCW 50.24.014(1)(a), shall be expended upon the direction
of the commissioner, with the approval of the governor,
whenever it appears to him or her that such expenditure is
necessary solely for:
(i) The proper administration of this title and no federal
funds are available for the specific purpose to which such
expenditure is to be made, provided, the moneys are not substituted for appropriations from federal funds which, in the
absence of such moneys, would be made available.
(ii) The proper administration of this title for which purpose appropriations from federal funds have been requested
but not yet received, provided, the administrative contingency fund will be reimbursed upon receipt of the requested
federal appropriation.
(iii) The proper administration of this title for which
compliance and audit issues have been identified that establish federal claims requiring the expenditure of state
resources in resolution. Claims must be resolved in the following priority: First priority is to provide services to eligible participants within the state; second priority is to provide
substitute services or program support; and last priority is the
direct payment of funds to the federal government.
(d) During the 2003-2005 fiscal biennium, the cost of the
job skills program and the alliance for corporate education at
community and technical colleges as appropriated by the legislature.
Money in the special account created under RCW
50.24.014(1)(a) may only be expended, after appropriation,
for the purposes specified in this section and RCW
50.62.010, 50.62.020, 50.62.030, 50.24.014, 50.44.053, and
50.22.010. [2003 2nd sp.s. c 4 § 23; 2003 1st sp.s. c 25 § 925;
2002 c 371 § 914. Prior: 1993 c 483 § 7; 1993 c 226 § 10;
1993 c 226 § 9; 1991 sp.s. c 13 § 59; 1987 c 202 § 218; 1985
ex.s. c 5 § 6; 1983 1st ex.s. c 13 § 5; 1980 c 142 § 1; 1977
ex.s. c 292 § 24; 1973 c 73 § 4; 1969 ex.s. c 199 § 27; 1959 c
170 § 1; 1955 c 286 § 2; 1953 ex.s. c 8 § 5; 1945 c 35 § 60;
Rem. Supp. 1945 § 9998-198; prior: 1943 c 127 § 6; 1941 c
253 §§ 7, 10; 1939 c 214 § 11; 1937 c 162 § 13.]
Reviser's note: This section was amended by 2003 1st sp.s. c 25 § 925
and by 2003 2nd sp.s. c 4 § 23, each without reference to the other. Both
amendments are incorporated in the publication of this section under RCW
1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
(2004 Ed.)
50.16.020
Severability—Effective date—2003 1st sp.s. c 25: See notes following RCW 19.28.351.
Severability—Effective date—2002 c 371: See notes following RCW
9.46.100.
Conflict with federal requirements—Severability—1993 c 483: See
notes following RCW 50.04.293.
Effective dates—1993 c 226 §§ 10, 12, and 14: "(1) Sections 10 and
12 of this act shall take effect June 30, 1999;
(2) Section 14 of this act shall take effect January 1, 1998." [1993 c
226 § 20.]
Conflict with federal requirements—1993 c 226: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1993 c 226 § 21.]
Severability—1993 c 226: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1993 c 226 § 22.]
Application—1993 c 226: "This act applies to tax rate years beginning
with tax rate year 1994." [1993 c 226 § 23.]
Effective dates—Severability—1991 sp.s. c 13: See notes following
RCW 18.08.240.
Intent—1987 c 202: See note following RCW 2.04.190.
Conflict with federal requirements—Severability—1985 ex.s. c 5:
See notes following RCW 50.62.010.
Conflict with federal requirements—1983 1st ex.s. c 13: "If any part
of this act is found to be in conflict with federal requirements which are a
prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is hereby declared to be inoperative solely to the
extent of the conflict, and such finding or determination shall not affect the
operation of the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal
funds by the state." [1983 1st ex.s. c 13 § 13.]
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
Effective dates—1973 c 73: See note following RCW 50.04.030.
50.16.015
50.16.015 Federal interest payment fund—Establishment. A separate and identifiable fund to provide for the
payment of interest on advances received from this state's
account in the federal unemployment trust fund shall be
established and administered under the direction of the commissioner. This fund shall be known as the federal interest
payment fund and shall consist of contributions paid under
RCW 50.16.070. All money in this fund shall be expended
solely for the payment of interest on advances received from
this state's account in the federal unemployment trust fund
and for no other purposes whatsoever. [2003 2nd sp.s. c 4 §
24; 1983 1st ex.s. c 13 § 6.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Conflict with federal requirements—1983 1st ex.s. c 13: See note following RCW 50.22.100.
50.16.020
50.16.020 Administration of funds—Accounts. The
commissioner shall designate a treasurer and custodian of the
unemployment compensation fund and of the administrative
contingency fund, who shall administer such funds in accordance with the directions of the commissioner and shall issue
his or her warrants upon them in accordance with such regu[Title 50 RCW—page 27]
50.16.030
Title 50 RCW: Unemployment Compensation
lations as the commissioner shall prescribe. The treasurer and
custodian shall maintain within the unemployment compensation fund three separate accounts as follows:
(1) a clearing account,
(2) an unemployment trust fund account, and
(3) a benefit account.
All moneys payable to the unemployment compensation
fund, upon receipt thereof by the commissioner, shall be forwarded to the treasurer, who shall immediately deposit them
in the clearing account. Refunds payable pursuant to the provisions of this title from the unemployment compensation
fund may be paid from the clearing account upon warrants
issued by the treasurer under the direction of the commissioner: PROVIDED, HOWEVER, That refunds of interest or
penalties on delinquent contributions shall be paid from the
administrative contingency fund upon warrants issued by the
treasurer under the direction of the commissioner.
After clearance thereof, all other moneys in the clearing
account shall be immediately deposited with the Secretary of
the Treasury of the United States to the credit of the account
of this state in the unemployment trust fund, established and
maintained pursuant to section 904 of the social security act,
as amended, any provisions of law in this state relating to the
deposit, administration, release, or disbursement of moneys
in the possession or custody of this state to the contrary notwithstanding.
The benefit account shall consist of all moneys requisitioned from this state's account in the unemployment trust
fund. Moneys in the clearing and benefit accounts and in the
administrative contingency fund shall not be commingled
with other state funds, but shall be deposited by the treasurer,
under the direction of the commissioner, in any bank or public depository in which general funds of the state may be
deposited, but no public deposit insurance charge or premium
shall be paid out of the fund.
Such moneys shall be secured by said bank or public
depository to the same extent and in the same manner as
required by the general depository law of the state and collateral pledged shall be maintained in a separate custody
account.
The treasurer shall give a bond conditioned upon the
faithful performance of his or her duties as a custodian of the
funds in an amount fixed by the director of the department of
general administration and in a form prescribed by law or
approved by the attorney general. Premiums for said bond
shall be paid from the administration fund. All sums recovered on official bonds for losses sustained by the unemployment compensation fund shall be deposited in such fund. All
sums recovered on official bonds for losses sustained by the
administrative contingency fund shall be deposited in such
fund. [1993 c 226 § 12; 1993 c 226 § 11; 1983 1st ex.s. c 23
§ 10; 1975 c 40 § 12; 1953 ex.s. c 8 § 6; 1945 c 35 § 61; Rem.
Supp. 1945 § 9998-199. Prior: 1943 c 126 §§ 6, 9; 1939 c
214 § 11; 1937 c 162 § 13.]
Effective dates—1993 c 226 §§ 10, 12, and 14: See note following
RCW 50.16.010.
Conflict with federal requirements—Severability—Application—
1993 c 226: See notes following RCW 50.16.010.
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
[Title 50 RCW—page 28]
Powers and duties of director of general administration as to official bonds:
RCW 43.41.360.
50.16.030
50.16.030 Withdrawals from federal unemployment
trust fund. (1) Moneys shall be requisitioned from this
state's account in the unemployment trust fund solely for the
payment of benefits and repayment of loans from the federal
government to guarantee solvency of the unemployment
compensation fund in accordance with regulations prescribed
by the commissioner, except that money credited to this
state's account pursuant to section 903 of the social security
act, as amended, shall be used exclusively as provided in
RCW 50.16.030(5). The commissioner shall from time to
time requisition from the unemployment trust fund such
amounts, not exceeding the amounts standing to its account
therein, as he or she deems necessary for the payment of benefits for a reasonable future period. Upon receipt thereof the
treasurer shall deposit such moneys in the benefit account
and shall issue his or her warrants for the payment of benefits
solely from such benefits account.
(2) Expenditures of such moneys in the benefit account
and refunds from the clearing account shall not be subject to
any provisions of law requiring specific appropriations or
other formal release by state officers of money in their custody, and RCW 43.01.050, as amended, shall not apply. All
warrants issued by the treasurer for the payment of benefits
and refunds shall bear the signature of the treasurer and the
countersignature of the commissioner, or his or her duly
authorized agent for that purpose.
(3) Any balance of moneys requisitioned from the unemployment trust fund which remains unclaimed or unpaid in
the benefit account after the expiration of the period for
which sums were requisitioned shall either be deducted from
estimates for, and may be utilized for the payment of, benefits
during succeeding periods, or in the discretion of the commissioner, shall be redeposited with the secretary of the treasury of the United States of America to the credit of this
state's account in the unemployment trust fund.
(4) Money credited to the account of this state in the
unemployment trust fund by the secretary of the treasury of
the United States of America pursuant to section 903 of the
social security act, as amended, may be requisitioned and
used for the payment of expenses incurred for the administration of this title pursuant to a specific appropriation by the
legislature, provided that the expenses are incurred and the
money is requisitioned after the enactment of an appropriation law which:
(a) Specifies the purposes for which such money is
appropriated and the amounts appropriated therefor;
(b) Limits the period within which such money may be
obligated to a period ending not more than two years after the
date of the enactment of the appropriation law; and
(c) Limits the amount which may be obligated during a
twelve-month period beginning on July 1st and ending on the
next June 30th to an amount which does not exceed the
amount by which (i) the aggregate of the amounts credited to
the account of this state pursuant to section 903 of the social
security act, as amended, during the same twelve-month
period and the thirty-four preceding twelve-month periods,
exceeds (ii) the aggregate of the amounts obligated pursuant
to RCW 50.16.030 (4), (5) and (6) and charged against the
(2004 Ed.)
Funds
amounts credited to the account of this state during any of
such thirty-five twelve-month periods. For the purposes of
RCW 50.16.030 (4), (5) and (6), amounts obligated during
any such twelve-month period shall be charged against
equivalent amounts which were first credited and which are
not already so charged; except that no amount obligated for
administration during any such twelve-month period may be
charged against any amount credited during such a twelvemonth period earlier than the thirty-fourth twelve-month
period preceding such period: PROVIDED, That any amount
credited to this state's account under section 903 of the social
security act, as amended, which has been appropriated for
expenses of administration, whether or not withdrawn from
the trust fund shall be excluded from the unemployment compensation fund balance for the purpose of experience rating
credit determination.
(5) Money credited to the account of this state pursuant
to section 903 of the social security act, as amended, may not
be withdrawn or used except for the payment of benefits and
for the payment of expenses of administration and of public
employment offices pursuant to RCW 50.16.030 (4), (5) and
(6). However, moneys credited because of excess amounts in
federal accounts in federal fiscal years 1999, 2000, and 2001
shall be used solely for the administration of the unemployment compensation program and are not subject to appropriation by the legislature for any other purpose.
(6) Money requisitioned as provided in RCW 50.16.030
(4), (5) and (6) for the payment of expenses of administration
shall be deposited in the unemployment compensation fund,
but until expended, shall remain a part of the unemployment
compensation fund. The commissioner shall maintain a separate record of the deposit, obligation, expenditure and return
of funds so deposited. Any money so deposited which either
will not be obligated within the period specified by the appropriation law or remains unobligated at the end of the period,
and any money which has been obligated within the period
but will not be expended, shall be returned promptly to the
account of this state in the unemployment trust fund. [1999 c
36 § 1; 1983 1st ex.s. c 7 § 1; 1973 c 6 § 1; 1969 ex.s. c 201
§ 1; 1959 c 170 § 2; 1945 c 35 § 62; Rem. Supp. 1945 § 9998200. Prior: 1943 c 127 § 6; 1941 c 253 § 7.]
Conflict with federal requirements—1999 c 36: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this
act. Rules adopted under this act must meet federal requirements that are a
necessary condition to the receipt of federal funds by the state or the granting
of federal unemployment tax credits to employers in this state." [1999 c 36
§ 2.]
50.16.040
50.16.040 Management of funds upon discontinuance of federal unemployment trust fund. The provisions
of this title, to the extent that they relate to the unemployment
trust fund, shall be operative only so long as such unemployment trust fund continues to exist and so long as the secretary
of the treasury of the United States of America continues to
maintain for this state a separate book account of all funds
deposited therein for this state for benefit purposes, together
with this state's proportionate share of the earnings of such
unemployment trust fund, from which no other state is per(2004 Ed.)
50.16.050
mitted to make withdrawals. If and when such unemployment
trust fund ceases to exist, or such separate book account is no
longer maintained, all moneys, properties or securities
therein, belonging to the unemployment compensation fund
of this state shall be transferred to the treasurer of the unemployment compensation fund, who shall hold, invest, transfer, sell, deposit, and release such moneys, properties, or
securities in a manner approved by the commissioner, in
accordance with the provisions of this title: PROVIDED,
That such moneys shall be invested in the following readily
marketable classes of securities: Bonds or other interest
bearing obligations of the United States of America: AND
PROVIDED FURTHER, That such investment shall at all
times be made so that all the assets of the fund shall always
be readily convertible into cash when needed for the payment
of benefits. The treasurer shall dispose of securities or other
properties belonging to the unemployment compensation
fund only under the direction of the commissioner. [1945 c
35 § 63; Rem. Supp. 1945 § 9998-201. Prior: 1941 c 253 §
7.]
50.16.050
50.16.050 Unemployment compensation administration fund. (1) There is hereby established a fund to be
known as the unemployment compensation administration
fund. Except as otherwise provided in this section, all moneys which are deposited or paid into this fund are hereby
made available to the commissioner. All moneys in this fund
shall be expended solely for the purpose of defraying the cost
of the administration of this title, and for no other purpose
whatsoever. All moneys received from the United States of
America, or any agency thereof, for said purpose pursuant to
section 302 of the social security act, as amended, shall be
expended solely for the purposes and in the amounts found
necessary by the secretary of labor for the proper and efficient administration of this title. All moneys received from
the United States employment service, United States department of labor, for said purpose pursuant to the act of congress
approved June 6, 1933, as amended or supplemented by any
other act of congress, shall be expended solely for the purposes and in the amounts found necessary by the secretary of
labor for the proper and efficient administration of the public
employment office system of this state. The unemployment
compensation administration fund shall consist of all moneys
received from the United States of America or any department or agency thereof, or from any other source, for such
purpose. All moneys in this fund shall be deposited, administered, and disbursed by the treasurer of the unemployment
compensation fund under rules and regulations of the commissioner and none of the provisions of RCW 43.01.050 shall
be applicable to this fund. The treasurer last named shall be
the treasurer of the unemployment compensation administration fund and shall give a bond conditioned upon the faithful
performance of his duties in connection with that fund. All
sums recovered on the official bond for losses sustained by
the unemployment compensation administration fund shall
be deposited in said fund.
(2) Notwithstanding any provision of this section:
(a) All money requisitioned and deposited in this fund
pursuant to RCW 50.16.030(6) shall remain part of the unemployment compensation fund and shall be used only in accor[Title 50 RCW—page 29]
50.16.060
Title 50 RCW: Unemployment Compensation
dance with the conditions specified in RCW 50.16.030 (4),
(5) and (6).
(b) All money deposited in this fund pursuant to RCW
50.38.065 shall be used only after appropriation and only for
the purposes of RCW 50.38.060. [1993 c 62 § 8; 1959 c 170
§ 3; 1947 c 215 § 13; 1945 c 35 § 64; Rem. Supp. 1947 §
9998-202. Prior: 1941 c 253 § 7; 1939 c 214 § 11; 1937 c 162
§ 13.]
Conflict with federal requirements—Effective date—1993 c 62: See
RCW 50.38.901 and 50.38.902.
the act or the application of the provision to other persons or circumstances
is not affected." [1989 1st ex.s. c 19 § 817.]
Effective date—1989 1st ex.s. c 19: "This act is necessary for the
immediate preservation of the public peace, health, or safety, or support of
the state government and its existing public institutions, and shall take effect
July 1, 1989." [1989 1st ex.s. c 19 § 818.]
Severability—1988 c 289: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1988 c 289 § 803.]
Conflict with federal requirements—1983 1st ex.s. c 13: See note
following RCW 50.16.010.
50.16.060
50.16.060 Replacement of federal funds. The state of
Washington hereby pledges that it will replace within a reasonable time any moneys paid to this state under Title III of
the social security act, and the Wagner-Peyser act, which,
because of any action or contingency, have been lost or have
been expended for purposes other than, or in amounts in
excess of, those found necessary by the secretary of labor for
the proper administration of the Washington employment
security act. [1959 c 170 § 4; 1945 c 35 § 67; Rem. Supp.
1945 § 9998-205.]
50.16.070
50.16.070 Federal interest payment fund—Employer
contributions—When payable—Maximum rate—Deduction from remuneration unlawful. The federal interest payment fund shall consist of contributions payable by each
employer (except employers as described in RCW 50.44.010
and 50.44.030 who have properly elected to make payments
in lieu of contributions, employers who are required to make
payments in lieu of contributions, and employers paying contributions under RCW 50.44.035) for any calendar quarter
which begins on or after January 1, 1984, and for which the
commissioner determines that the department will have an
outstanding balance of accruing federal interest at the end of
the calendar quarter. The amount of wages subject to tax shall
be determined according to RCW 50.24.010. The tax rate
applicable to wages paid during the calendar quarter shall be
determined by the commissioner and shall not exceed fifteen
one-hundredths of one percent. In determining whether to
require contributions as authorized by this section, the commissioner shall consider the current balance in the federal
interest payment fund and the projected amount of interest
which will be due and payable as of the following September
30. Except as appropriated for the fiscal biennium ending
June 30, 1991, any excess moneys in the federal interest payment fund shall be retained in the fund for future interest payments.
Contributions under this section shall become due and be
paid by each employer in accordance with such rules as the
commissioner may prescribe and shall not be deducted, in
whole or in part, from the remuneration of individuals in the
employ of the employer. Any deduction in violation of this
section is unlawful.
In the payment of any contributions under this section, a
fractional part of a cent shall be disregarded unless it amounts
to one-half cent or more, in which case it shall be increased to
one cent. [1989 1st ex.s. c 19 § 811; 1988 c 289 § 710; 1983
1st ex.s. c 13 § 7.]
Severability—1989 1st ex.s. c 19: "If any provision of this act or its
application to any person or circumstance is held invalid, the remainder of
[Title 50 RCW—page 30]
50.16.080
50.16.080 Federal targeted jobs tax credit program—Administration—Processing fee—Deposit of fees.
The cost of administering the federal targeted jobs tax credit
program shall be fully borne by the employers requesting the
credits. The commissioner shall establish the amount of the
processing fee and procedures for collecting the fee. The
commissioner shall establish the processing fee at a sufficient
level to defray the costs of administering the federal targeted
jobs tax credit program. The fee shall be established by the
commissioner by rule. However, if federal funding is provided to finance such services, the commissioner shall revise
or eliminate this fee based on the amount of federal funding
received. Fees received for processing shall be deposited in a
special account in the unemployment compensation administration fund. [1988 c 84 § 2.]
Legislative finding—1988 c 84: "The legislature finds that:
(1) The employment security department through the targeted jobs tax
credit program has the responsibility to issue federal tax credit certifications
to Washington state employers. The tax credit certification allows the
employer to claim a credit against federal income tax for wages paid during
the first year to employees who qualify for the program.
(2) To the extent that funding is available, the department, through the
federal targeted jobs tax credit program, provides service to employers in the
form of technical assistance and training, program marketing, monitoring,
and maintenance of records and processing of documents that may result in
a certification which allows employers to claim a federal tax credit.
(3) The United States Congress through the Tax Reform Act of 1986
reauthorized the targeted jobs tax credit but did not include funds to cover the
costs of processing employer requests for federal tax credit certifications.
(4) The state has a vital interest in the economic benefits employers
realize from the targeted jobs tax credit because the economic competitiveness of Washington state is enhanced as tax credit savings are reinvested in
the state's economy.
(5) The departments of corrections, social and health services, and veterans affairs, and the superintendent of public instruction, along with
employment security and other state service providers, utilize the targeted
jobs tax credit program as an incentive for employers to hire hard-to-place
clients.
(6) Economically disadvantaged youth, Vietnam-era veterans, ex-felons, and vocational rehabilitation, supplemental security income, general
assistance and AFDC recipients have an especially difficult time in obtaining
employment." [1988 c 84 § 1.]
Conflict with federal requirements—1988 c 84: "If any part of this
act shall be found to be in conflict with federal requirements which are a prescribed condition to the allocation of federal funds to the state, such conflicting part of this act is hereby declared to be inoperative solely to the extent of
such conflict, and such finding or determination shall not affect the operation
of the remainder of this act. The rules under this act shall meet federal
requirements which are a necessary condition to the receipt of federal funds
by the state." [1988 c 84 § 3.]
Severability—1988 c 84: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1988 c 84 § 4.]
Effective date—1988 c 84: "This act is necessary for the immediate
preservation of the public peace, health, and safety, the support of the state
(2004 Ed.)
Benefits and Claims
government and its existing public institutions, and shall take effect March 1,
1988." [1988 c 84 § 6.] This act was signed by the governor March 16,
1988.
Chapter 50.20
Chapter 50.20 RCW
BENEFITS AND CLAIMS
Sections
50.20.010
50.20.011
50.20.012
50.20.020
50.20.041
50.20.042
50.20.043
50.20.044
50.20.050
50.20.060
50.20.065
50.20.066
50.20.070
50.20.080
50.20.085
50.20.090
50.20.095
50.20.098
50.20.099
50.20.100
50.20.110
50.20.113
50.20.115
50.20.117
50.20.118
50.20.119
50.20.120
50.20.130
50.20.140
50.20.150
50.20.160
50.20.170
50.20.180
50.20.190
50.20.191
50.20.192
50.20.193
50.20.195
50.20.200
50.20.210
50.20.220
50.20.230
50.20.240
Benefit eligibility conditions.
Profiling system to identify individuals likely to exhaust benefits—Confidentiality of information—Penalty.
Rules—1995 c 381.
Waiting period credit limitation.
Health care professionals who have contracted hepatitis C—
Training.
Unemployed aerospace workers—Training.
Training provision.
Ineligibility for benefits for failure to attend job search workshop or training course.
Disqualification for leaving work voluntarily without good
cause.
Disqualification from benefits due to misconduct.
Cancellation of hourly wage credits due to felony or gross misdemeanor.
Disqualification from benefits due to misconduct—Cancellation of hourly wage credits due to gross misconduct.
Disqualification for misrepresentation.
Disqualification for refusal to work.
Disqualification for receipt of industrial insurance disability
benefits.
Strike or lockout disqualification—When inapplicable.
Disqualification for attending school or institution of higher
education.
Services performed by alien.
Training benefits—Eligibility to work in the United States.
Suitable work factors.
Suitable work exceptions.
Unemployment of sport or athletic event participant during
period between sport seasons.
Unemployment due to vacation.
Jury service.
Unemployment while in approved training.
Part-time workers.
Amount of benefits.
Deduction from weekly benefit amount.
Filing applications and claims—Definitions.
Notice of application or claim.
Redetermination.
Payment of benefits.
Denial of benefits.
Recovery of benefit payments.
Authority to compromise benefit overpayments.
Collection of benefit overpayments, limitation of actions.
Chargeoff of uncollectible benefit overpayments.
Assessed interest—Use.
Nonliability of state.
Notification of availability of basic health plan.
Federal income tax deduction and withholding—Notice—
Rules.
Electronic labor exchange system.
Job search monitoring.
Environmental restoration job training: RCW 43.21J.060 and 43.21J.070.
50.20.010
would be oppressive, or would be inconsistent with the purposes of this title;
(b) He or she has filed an application for an initial determination and made a claim for waiting period credit or for
benefits in accordance with the provisions of this title;
(c) He or she is able to work, and is available for work in
any trade, occupation, profession, or business for which he or
she is reasonably fitted.
(i) With respect to claims that have an effective date
before January 4, 2004, to be available for work an individual
must be ready, able, and willing, immediately to accept any
suitable work which may be offered to him or her and must be
actively seeking work pursuant to customary trade practices
and through other methods when so directed by the commissioner or the commissioner's agents.
(ii) With respect to claims that have an effective date on
or after January 4, 2004, to be available for work an individual must be ready, able, and willing, immediately to accept
any suitable work which may be offered to him or her and
must be actively seeking work pursuant to customary trade
practices and through other methods when so directed by the
commissioner or the commissioner's agents. If a labor agreement or dispatch rules apply, customary trade practices must
be in accordance with the applicable agreement or rules;
(d) He or she has been unemployed for a waiting period
of one week;
(e) He or she participates in reemployment services if the
individual has been referred to reemployment services pursuant to the profiling system established by the commissioner
under RCW 50.20.011, unless the commissioner determines
that:
(i) The individual has completed such services; or
(ii) There is justifiable cause for the claimant's failure to
participate in such services; and
(f) As to weeks beginning after March 31, 1981, which
fall within an extended benefit period as defined in RCW
50.22.010, the individual meets the terms and conditions of
RCW 50.22.020 with respect to benefits claimed in excess of
twenty-six times the individual's weekly benefit amount.
(2) An individual's eligibility period for regular benefits
shall be coincident to his or her established benefit year. An
individual's eligibility period for additional or extended benefits shall be the periods prescribed elsewhere in this title for
such benefits. [2003 2nd sp.s. c 4 § 3; 1995 c 381 § 1; 1981
c 35 § 3; 1973 c 73 § 6; 1970 ex.s. c 2 § 4; 1959 c 266 § 3;
1953 ex.s. c 8 § 7; 1951 c 265 § 9; 1951 c 215 § 11; 1949 c
214 § 9; 1945 c 35 § 68; Rem. Supp. 1949 § 9998-206. Prior:
1943 c 127 § 2; 1941 c 253 §§ 1, 2; 1939 c 214 § 2; 1937 c
162 § 4.]
50.20.010
50.20.010 Benefit eligibility conditions. (1) An unemployed individual shall be eligible to receive waiting period
credits or benefits with respect to any week in his or her eligibility period only if the commissioner finds that:
(a) He or she has registered for work at, and thereafter
has continued to report at, an employment office in accordance with such regulation as the commissioner may prescribe, except that the commissioner may by regulation waive
or alter either or both of the requirements of this subdivision
as to individuals attached to regular jobs and as to such other
types of cases or situations with respect to which the commissioner finds that the compliance with such requirements
(2004 Ed.)
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Conflict with federal requirements—1995 c 381: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1995 c 381 § 5.]
Effective date—1995 c 381: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state gov[Title 50 RCW—page 31]
50.20.011
Title 50 RCW: Unemployment Compensation
ernment and its existing public institutions, and shall take effect immediately
[May 16, 1995]." [1995 c 381 § 6.]
Construction—Effective dates—Severability—1981 c 35: See notes
following RCW 50.22.030.
Effective dates—1973 c 73: See note following RCW 50.04.030.
Effective date—1970 ex.s. c 2: See note following RCW 50.04.020.
the state or the granting of federal unemployment tax credits
to employers in this state. [1995 c 381 § 4.]
*Reviser's note: Section 3 of this act (amendment to RCW 50.20.043)
was vetoed by the governor.
Conflict with federal requirements—Effective date—1995 c 381:
See notes following RCW 50.20.010.
Severability—1951 c 265: See note following RCW 50.98.070.
Government or retirement pension plan payments as remuneration or
wages—Recovery of excess over benefits allowable, limitations: RCW
50.04.323.
50.20.011
50.20.011 Profiling system to identify individuals
likely to exhaust benefits—Confidentiality of information—Penalty. (1) The commissioner shall establish and use
a profiling system for new claimants for regular compensation under this title that identifies permanently separated
workers who are likely to exhaust regular compensation and
will need job search assistance services to make a successful
transition to new employment. The profiling system shall use
a combination of individual characteristics and labor market
information to assign each individual a unique probability of
benefit exhaustion. Individuals identified as likely to exhaust
benefits shall be referred to reemployment services, such as
job search assistance services, to the extent such services are
available at public expense.
(2) The profiling system shall include collection and
review of follow-up information relating to the services
received by individuals under this section and the employment outcomes for the individuals following receipt of the
services. The information shall be used in making profiling
identifications.
(3) In carrying out reviews of individuals receiving services, the department may contract with public or private
entities and may disclose information or records necessary to
permit contracting entities to assist in the operation and management of department functions. Any information or records
disclosed to public or private entities shall be used solely for
the purposes for which the information was disclosed and the
entity shall be bound by the same rules of privacy and confidentiality as department employees. The misuse or unauthorized disclosure of information or records deemed private and
confidential under chapter 50.13 RCW by any person or
organization to which access is permitted by this section shall
subject the person or organization to a civil penalty of five
thousand dollars and other applicable sanctions under state
and federal law. Suit to enforce this section shall be brought
by the attorney general and the amount of any penalties collected shall be paid into the employment security department
administrative contingency fund. The attorney general may
recover reasonable attorneys' fees for any action brought to
enforce this section. [1995 c 381 § 2.]
Conflict with federal requirements—Effective date—1995 c 381:
See notes following RCW 50.20.010.
50.20.012
50.20.012 Rules—1995 c 381. The commissioner may
adopt rules as necessary to implement the 1995 c 381 §§ 1
and *3 amendments to RCW 50.20.010 and 50.20.043 and
50.20.011, including but not limited to definitions, eligibility
standards, program review criteria and procedures, and provisions necessary to comply with applicable federal laws and
regulations that are a condition to receipt of federal funds by
[Title 50 RCW—page 32]
50.20.020
50.20.020 Waiting period credit limitation. No week
shall be counted as a waiting period week,
(1) if benefits have been paid with respect thereto, and
(2) unless the individual was otherwise eligible for benefits with respect thereto, and
(3) unless it occurs within the benefit year which
includes the week with respect to which he claims payment of
benefits. [1949 c 214 § 10; 1945 c 35 § 69; Rem. Supp. 1949
§ 9998-207.]
50.20.041
50.20.041 Health care professionals who have contracted hepatitis C—Training. (1) Credentialed health care
professionals listed in RCW 18.130.040 shall be deemed to
be dislocated workers for the purpose of commissioner
approval of training under RCW 50.20.043 if they are unemployed as a result of contracting hepatitis C in the course of
employment and are unable to continue to work in their profession because of a significant risk that such work would
pose to other persons and that risk cannot be eliminated.
(2) For purposes of subsection (1) of this section, a
health care professional who was employed on a full-time
basis in their profession shall be presumed to have contracted
hepatitis C in the course of employment. This presumption
may be rebutted by a preponderance of the evidence that
demonstrates that the health care professional contracted hepatitis C as a result of activities or circumstances not related to
employment. [2003 c 273 § 4.]
50.20.042
50.20.042 Unemployed aerospace workers—Training. Aerospace workers unemployed as the result of downsizing and restructuring of the aerospace industry will be
deemed to be dislocated workers for the purpose of commissioner approval of training under RCW 50.20.043. [1993 c
226 § 7.]
Conflict with federal requirements—Severability—Application—
1993 c 226: See notes following RCW 50.16.010.
50.20.043
50.20.043 Training provision. No otherwise eligible
individual shall be denied benefits for any week because the
individual is in training with the approval of the commissioner, nor shall such individual be denied benefits with
respect to any week in which the individual is satisfactorily
progressing in a training program with the approval of the
commissioner by reason of the application of RCW
50.20.010(1)(c), 50.20.080, or 50.22.020(1) relating to availability for work and active search for work, or failure to apply
for or refusal to accept suitable work.
An individual who the commissioner determines to be a
dislocated worker as defined by RCW 50.04.075 and who is
satisfactorily progressing in a training program approved by
the commissioner shall be considered to be in training with
the approval of the commissioner. [2003 2nd sp.s. c 4 § 30;
1985 c 40 § 1; 1984 c 181 § 2; 1971 c 3 § 12.]
(2004 Ed.)
Benefits and Claims
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Conflict with federal requirements—1985 c 40: "If any part of this
act is found to be in conflict with federal requirements which are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1985 c 40 § 2.]
Severability—1985 c 40: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1985 c 40 § 3.]
Effective date—1985 c 40: "This act is necessary for the immediate
preservation of the public peace, health, and safety, the support of the state
government and its existing public institutions, and shall take effect July 1,
1985." [1985 c 40 § 4.]
Construction—Compliance with federal act—1971 c 3: See RCW
50.44.080.
50.20.044
50.20.044 Ineligibility for benefits for failure to
attend job search workshop or training course. If an otherwise eligible individual fails without good cause, as determined by the commissioner under rules prescribed by the
commissioner, to attend a job search workshop or a training
or retraining course when directed by the department and
such workshop or course is available at public expense, such
individual shall not be eligible for benefits with respect to any
week in which such failure occurred. [1984 c 205 § 8.]
Conflict with federal requirements—Severability—Effective
dates—1984 c 205: See notes following RCW 50.20.120.
50.20.050
50.20.050 Disqualification for leaving work voluntarily without good cause. (1) With respect to claims that have
an effective date before January 4, 2004:
(a) An individual shall be disqualified from benefits
beginning with the first day of the calendar week in which he
or she has left work voluntarily without good cause and thereafter for seven calendar weeks and until he or she has
obtained bona fide work in employment covered by this title
and earned wages in that employment equal to seven times
his or her weekly benefit amount.
The disqualification shall continue if the work obtained
is a mere sham to qualify for benefits and is not bona fide
work. In determining whether work is of a bona fide nature,
the commissioner shall consider factors including but not
limited to the following:
(i) The duration of the work;
(ii) The extent of direction and control by the employer
over the work; and
(iii) The level of skill required for the work in light of the
individual's training and experience.
(b) An individual shall not be considered to have left
work voluntarily without good cause when:
(i) He or she has left work to accept a bona fide offer of
bona fide work as described in (a) of this subsection;
(ii) The separation was because of the illness or disability of the claimant or the death, illness, or disability of a
member of the claimant's immediate family if the claimant
took all reasonable precautions, in accordance with any regulations that the commissioner may prescribe, to protect his or
(2004 Ed.)
50.20.050
her employment status by having promptly notified the
employer of the reason for the absence and by having
promptly requested reemployment when again able to
assume employment: PROVIDED, That these precautions
need not have been taken when they would have been a futile
act, including those instances when the futility of the act was
a result of a recognized labor/management dispatch system;
(iii) He or she has left work to relocate for the spouse's
employment that is due to an employer-initiated mandatory
transfer that is outside the existing labor market area if the
claimant remained employed as long as was reasonable prior
to the move; or
(iv) The separation was necessary to protect the claimant
or the claimant's immediate family members from domestic
violence, as defined in RCW 26.50.010, or stalking, as
defined in RCW 9A.46.110.
(c) In determining under this subsection whether an individual has left work voluntarily without good cause, the commissioner shall only consider work-connected factors such as
the degree of risk involved to the individual's health, safety,
and morals, the individual's physical fitness for the work, the
individual's ability to perform the work, and such other work
connected factors as the commissioner may deem pertinent,
including state and national emergencies. Good cause shall
not be established for voluntarily leaving work because of its
distance from an individual's residence where the distance
was known to the individual at the time he or she accepted the
employment and where, in the judgment of the department,
the distance is customarily traveled by workers in the individual's job classification and labor market, nor because of any
other significant work factor which was generally known and
present at the time he or she accepted employment, unless the
related circumstances have so changed as to amount to a substantial involuntary deterioration of the work factor or unless
the commissioner determines that other related circumstances would work an unreasonable hardship on the individual were he or she required to continue in the employment.
(d) Subsection (1)(a) and (c) of this section shall not
apply to an individual whose marital status or domestic
responsibilities cause him or her to leave employment. Such
an individual shall not be eligible for unemployment insurance benefits beginning with the first day of the calendar
week in which he or she left work and thereafter for seven
calendar weeks and until he or she has requalified, either by
obtaining bona fide work in employment covered by this title
and earning wages in that employment equal to seven times
his or her weekly benefit amount or by reporting in person to
the department during ten different calendar weeks and certifying on each occasion that he or she is ready, able, and willing to immediately accept any suitable work which may be
offered, is actively seeking work pursuant to customary trade
practices, and is utilizing such employment counseling and
placement services as are available through the department.
This subsection does not apply to individuals covered by
(b)(ii) or (iii) of this subsection.
(2) With respect to claims that have an effective date on
or after January 4, 2004:
(a) An individual shall be disqualified from benefits
beginning with the first day of the calendar week in which he
or she has left work voluntarily without good cause and thereafter for seven calendar weeks and until he or she has
[Title 50 RCW—page 33]
50.20.060
Title 50 RCW: Unemployment Compensation
obtained bona fide work in employment covered by this title
and earned wages in that employment equal to seven times
his or her weekly benefit amount.
The disqualification shall continue if the work obtained
is a mere sham to qualify for benefits and is not bona fide
work. In determining whether work is of a bona fide nature,
the commissioner shall consider factors including but not
limited to the following:
(i) The duration of the work;
(ii) The extent of direction and control by the employer
over the work; and
(iii) The level of skill required for the work in light of the
individual's training and experience.
(b) An individual is not disqualified from benefits under
(a) of this subsection when:
(i) He or she has left work to accept a bona fide offer of
bona fide work as described in (a) of this subsection;
(ii) The separation was necessary because of the illness
or disability of the claimant or the death, illness, or disability
of a member of the claimant's immediate family if:
(A) The claimant pursued all reasonable alternatives to
preserve his or her employment status by requesting a leave
of absence, by having promptly notified the employer of the
reason for the absence, and by having promptly requested
reemployment when again able to assume employment.
These alternatives need not be pursued, however, when they
would have been a futile act, including those instances when
the futility of the act was a result of a recognized labor/management dispatch system; and
(B) The claimant terminated his or her employment status, and is not entitled to be reinstated to the same position or
a comparable or similar position;
(iii) He or she: (A) Left work to relocate for the spouse's
employment that, due to a mandatory military transfer: (I) Is
outside the existing labor market area; and (II) is in Washington or another state that, pursuant to statute, does not consider
such an individual to have left work voluntarily without good
cause; and (B) remained employed as long as was reasonable
prior to the move;
(iv) The separation was necessary to protect the claimant
or the claimant's immediate family members from domestic
violence, as defined in RCW 26.50.010, or stalking, as
defined in RCW 9A.46.110;
(v) The individual's usual compensation was reduced by
twenty-five percent or more;
(vi) The individual's usual hours were reduced by
twenty-five percent or more;
(vii) The individual's worksite changed, such change
caused a material increase in distance or difficulty of travel,
and, after the change, the commute was greater than is customary for workers in the individual's job classification and
labor market;
(viii) The individual's worksite safety deteriorated, the
individual reported such safety deterioration to the employer,
and the employer failed to correct the hazards within a reasonable period of time;
(ix) The individual left work because of illegal activities
in the individual's worksite, the individual reported such
activities to the employer, and the employer failed to end
such activities within a reasonable period of time; or
[Title 50 RCW—page 34]
(x) The individual's usual work was changed to work that
violates the individual's religious convictions or sincere
moral beliefs. [2003 2nd sp.s. c 4 § 4; 2002 c 8 § 1; 2000 c 2
§ 12; 1993 c 483 § 8; 1982 1st ex.s. c 18 § 6; 1981 c 35 § 4;
1980 c 74 § 5; 1977 ex.s. c 33 § 4; 1970 ex.s. c 2 § 21; 1953
ex.s. c 8 § 8; 1951 c 215 § 12; 1949 c 214 § 12; 1947 c 215 §
15; 1945 c 35 § 73; Rem. Supp. 1949 § 9998-211. Prior:
1943 c 127 § 3; 1941 c 253 § 3; 1939 c 214 § 3; 1937 c 162 §
5.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Application—2000 c 2 §§ 1, 2, 4, 5, 8, and 12-15: See note following
RCW 50.22.150.
Conflict with federal requirements—Severability—Effective date—
2000 c 2: See notes following RCW 50.04.355.
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
Severability—Conflict with federal requirements—1982 1st ex.s. c
18: See notes following RCW 50.12.200.
Severability—1981 c 35: See note following RCW 50.22.030.
Severability—1980 c 74: See note following RCW 50.04.323.
Effective dates—Construction—1977 ex.s. c 33: See notes following
RCW 50.04.030.
Effective date—1970 ex.s. c 2: See note following RCW 50.04.020.
50.20.060
50.20.060 Disqualification from benefits due to misconduct. With respect to claims that have an effective date
before January 4, 2004, an individual shall be disqualified
from benefits beginning with the first day of the calendar
week in which he or she has been discharged or suspended
for misconduct connected with his or her work and thereafter
for seven calendar weeks and until he or she has obtained
bona fide work in employment covered by this title and
earned wages in that employment equal to seven times his or
her weekly benefit amount. Alcoholism shall not constitute a
defense to disqualification from benefits due to misconduct.
[2003 2nd sp.s. c 4 § 7; 2000 c 2 § 13; 1993 c 483 § 9; 1982
1st ex.s. c 18 § 16; 1977 ex.s. c 33 § 5; 1970 ex.s. c 2 § 22;
1953 ex.s. c 8 § 9; 1951 c 215 § 13; 1949 c 214 § 13; 1947 c
215 § 16; 1945 c 35 § 74; Rem. Supp. 1949 § 9998-212.
Prior: 1943 c 127 § 3; 1941 c 253 § 3; 1939 c 214 § 3; 1937
c 162 § 5.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Application—2000 c 2 §§ 1, 2, 4, 5, 8, and 12-15: See note following
RCW 50.22.150.
Conflict with federal requirements—Severability—Effective date—
2000 c 2: See notes following RCW 50.04.355.
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
Severability—Conflict with federal requirements—1982 1st ex.s. c
18: See notes following RCW 50.12.200.
Effective dates—Construction—1977 ex.s. c 33: See notes following
RCW 50.04.030.
Effective date—1970 ex.s. c 2: See note following RCW 50.04.020.
50.20.065 Cancellation of hourly wage credits due to
felony or gross misdemeanor. With respect to claims that
have an effective date before January 4, 2004:
(1) An individual who has been discharged from his or
her work because of a felony or gross misdemeanor of which
he or she has been convicted, or has admitted committing to
50.20.065
(2004 Ed.)
Benefits and Claims
a competent authority, and that is connected with his or her
work shall have all hourly wage credits based on that employment canceled.
(2) The employer shall notify the department of such an
admission or conviction, not later than six months following
the admission or conviction.
(3) The claimant shall disclose any conviction of the
claimant of a work-connected felony or gross misdemeanor
occurring in the previous two years to the department at the
time of application for benefits.
(4) All benefits that are paid in error based on wage/hour
credits that should have been removed from the claimant's
base year are recoverable, notwithstanding RCW 50.20.190
or 50.24.020 or any other provisions of this title. [2003 2nd
sp.s. c 4 § 8; 1993 c 483 § 11.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
50.20.066
50.20.066 Disqualification from benefits due to misconduct—Cancellation of hourly wage credits due to
gross misconduct. With respect to claims that have an effective date on or after January 4, 2004:
(1) An individual shall be disqualified from benefits
beginning with the first day of the calendar week in which he
or she has been discharged or suspended for misconduct connected with his or her work and thereafter for ten calendar
weeks and until he or she has obtained bona fide work in
employment covered by this title and earned wages in that
employment equal to ten times his or her weekly benefit
amount. Alcoholism shall not constitute a defense to disqualification from benefits due to misconduct.
(2) An individual who has been discharged from his or
her work because of gross misconduct shall have all hourly
wage credits based on that employment or six hundred eighty
hours of wage credits, whichever is greater, canceled.
(3) The employer shall notify the department of a felony
or gross misdemeanor of which an individual has been convicted, or has admitted committing to a competent authority,
not later than six months following the admission or conviction.
(4) The claimant shall disclose any conviction of the
claimant of a work-connected felony or gross misdemeanor
occurring in the previous two years to the department at the
time of application for benefits.
(5) All benefits that are paid in error based on this section
are recoverable, notwithstanding RCW 50.20.190 or
50.24.020 or any other provisions of this title. [2003 2nd
sp.s. c 4 § 9.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
50.20.090
week for which he completes an otherwise compensable
claim for waiting period credit or benefits following the date
of the delivery or mailing of the determination of disqualification under this section: PROVIDED, That such disqualification shall not be applied after two years have elapsed from
the date of the delivery or mailing of the determination of disqualification under this section, but all overpayments established by such determination of disqualification shall be collected as otherwise provided by this title. [1973 1st ex.s. c
158 § 5; 1953 ex.s. c 8 § 10; 1951 c 265 § 10; 1949 c 214 §
14; 1947 c 215 § 17; 1945 c 35 § 75; Rem. Supp. 1949 §
9998-213. Prior: 1943 c 127 § 3; 1941 c 253 § 3; 1939 c 214
§ 3; 1937 c 162 § 5.]
Effective date—1973 1st ex.s. c 158: See note following RCW
50.08.020.
Severability—1951 c 265: See note following RCW 50.98.070.
50.20.080
50.20.080 Disqualification for refusal to work. An
individual is disqualified for benefits, if the commissioner
finds that the individual has failed without good cause, either
to apply for available, suitable work when so directed by the
employment office or the commissioner, or to accept suitable
work when offered the individual, or to return to his or her
customary self-employment (if any) when so directed by the
commissioner. Such disqualification shall begin with the
week of the refusal and thereafter for seven calendar weeks
and continue until the individual has obtained bona fide work
in employment covered by this title and earned wages in that
employment of not less than seven times his or her suspended
weekly benefit amount. [2000 c 2 § 14; 1993 c 483 § 10;
1959 c 321 § 1; 1953 ex.s. c 8 § 11; 1951 c 215 § 14; 1949 c
214 § 15; 1945 c 35 § 76; Rem. Supp. 1949 § 9998-214.
Prior: 1943 c 127 § 3; 1941 c 253 § 3; 1939 c 214 § 3; 1937
c 162 § 5.]
Application—2000 c 2 §§ 1, 2, 4, 5, 8, and 12-15: See note following
RCW 50.22.150.
Conflict with federal requirements—Severability—Effective date—
2000 c 2: See notes following RCW 50.04.355.
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
Effective date—1959 c 321: "This act shall take effect on July 5,
1959." [1959 c 321 § 4.]
50.20.085
50.20.085 Disqualification for receipt of industrial
insurance disability benefits. An individual is disqualified
from benefits with respect to any day or days for which he or
she is receiving, has received, or will receive compensation
under RCW 51.32.060 or 51.32.090. [1991 c 117 § 2; 1986 c
75 § 1.]
Conflict with federal requirements—Severability—Effective
dates—1991 c 117: See notes following RCW 50.04.030.
50.20.090
50.20.070
50.20.070 Disqualification for misrepresentation.
Irrespective of any other provisions of this title an individual
shall be disqualified for benefits for any week with respect to
which he has knowingly made a false statement or representation involving a material fact or knowingly failed to report
a material fact and has thereby obtained or attempted to
obtain any benefits under the provisions of this title, and for
an additional twenty-six weeks commencing with the first
(2004 Ed.)
50.20.090 Strike or lockout disqualification—When
inapplicable. (1) An individual shall be disqualified for benefits for any week with respect to which the commissioner
finds that the individual's unemployment is:
(a) Due to a strike at the factory, establishment, or other
premises at which the individual is or was last employed; or
(b) Due to a lockout by his or her employer who is a
member of a multi-employer bargaining unit and who has
locked out the employees at the factory, establishment, or
[Title 50 RCW—page 35]
50.20.095
Title 50 RCW: Unemployment Compensation
other premises at which the individual is or was last
employed after one member of the multi-employer bargaining unit has been struck by its employees as a result of the
multi-employer bargaining process.
(2) Subsection (1) of this section shall not apply if it is
shown to the satisfaction of the commissioner that:
(a) The individual is not participating in or financing or
directly interested in the strike or lockout that caused the individual's unemployment; and
(b) The individual does not belong to a grade or class of
workers of which, immediately before the commencement of
the strike or lockout, there were members employed at the
premises at which the strike or lockout occurs, any of whom
are participating in or financing or directly interested in the
strike or lockout: PROVIDED, That if in any case separate
branches of work which are commonly conducted as separate
businesses in separate premises are conducted in separate
departments of the same premises, each such department
shall, for the purpose of this subdivision, be deemed to be a
separate factory, establishment, or other premises.
(3) Any disqualification imposed under this section shall
end when the strike or lockout is terminated. [1988 c 83 § 1;
1987 c 2 § 1; 1953 ex.s. c 8 § 12; 1945 c 35 § 77; Rem. Supp.
1945 § 9998-215. Prior: 1943 c 127 § 3; 1941 c 253 § 3; 1939
c 214 § 3; 1937 c 162 § 5.]
Labor dispute study—1988 c 83: "(1) The department of employment
security shall study and analyze the impact of section 1 of this act on the
number of claimants receiving unemployment insurance benefits and the
total amount of benefits paid, and on the type, frequency, duration, and outcome of labor disputes. In performing the study the department shall specifically address the impact of section 1(1)(b) of this act on the above subjects.
(2) In performing its duties under this section the department shall periodically convene meetings with representatives of labor and management,
including but not limited to representatives of the following: A general business association; an organization broadly representing organized labor; the
construction industry; construction industry organized labor; the trade industry; trade industry organized labor; the manufacturing industry; manufacturing industry organized labor; the service industry; service industry organized
labor; the transportation industry; transportation industry organized labor;
the communication industry; and communication industry organized labor.
(3) For the purpose of studying and analyzing the impact of section
1(1)(b) of this act the department shall periodically convene, in addition to
those meetings specified in subsection (2) of this section, meetings with representatives of labor and management from industries with multi-employer
bargaining units, including but not limited to representatives from a general
business association; an organization broadly representing organized labor;
the retail trade industry; and retail trade industry organized labor.
(4) The department shall report its findings to the governor, the senate
economic development and labor committee, and the house of representatives commerce and labor committee, or the appropriate successor committees, by the commencement of the 1990 regular session of the legislature."
[1988 c 83 § 2.]
Effective date—1988 c 83: "This act is necessary for the immediate
preservation of the public peace, health, and safety, the support of the state
government and its existing public institutions, and shall take effect on the
Sunday following the day on which the governor signs this act [March 20,
1988]." [1988 c 83 § 3.]
Applicability—Effective date—1987 c 2: "(1) This act shall apply retrospectively to all applicable employers and employees as of November 16,
1986.
(2) This act is necessary for the immediate preservation of the public
peace, health, and safety, the support of the state government and its existing
public institutions, and shall take effect immediately [February 20, 1987]."
[1987 c 2 § 4.]
Severability—1987 c 2: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1987 c 2 § 5.]
[Title 50 RCW—page 36]
50.20.095
50.20.095 Disqualification for attending school or
institution of higher education. Any individual registered
at an established school in a course of study providing scholastic instruction of twelve or more hours per week, or the
equivalent thereof, shall be disqualified from receiving benefits or waiting period credit for any week during the school
term commencing with the first week of such scholastic
instruction or the week of leaving employment to return to
school, whichever is the earlier, and ending with the week
immediately before the first full week in which the individual
is no longer registered for twelve or more hours of scholastic
instruction per week: PROVIDED, That registration for less
than twelve hours will be for a period of sixty days or longer.
The term "school" includes primary schools, secondary
schools, and "institutions of higher education" as that phrase
is defined in RCW 50.44.037.
This disqualification shall not apply to any individual
who:
(1) Is in approved training within the meaning of RCW
50.20.043; or
(2) Demonstrates to the commissioner by a preponderance of the evidence his or her actual availability for work,
and in arriving at this determination the commissioner shall
consider the following factors:
(a) Prior work history;
(b) Scholastic history;
(c) Past and current labor market attachment; and
(d) Past and present efforts to seek work. [1980 c 74 § 4;
1977 ex.s. c 33 § 8.]
Severability—1980 c 74: See note following RCW 50.04.323.
Effective dates—Construction—1977 ex.s. c 33: See notes following
RCW 50.04.030.
50.20.098
50.20.098 Services performed by alien. (1) Benefits
shall not be paid on the basis of services performed by an
alien unless the alien is an individual who was lawfully
admitted for permanent residence, was lawfully present for
purposes of performing such services, or otherwise was permanently residing in the United States under color of law at
the time such services were performed, including an alien
who was lawfully present in the United States as a result of
the application of the provisions of 8 U.S.C. Sec. 1182(d)(5):
PROVIDED, That any modifications to 26 U.S.C. Sec.
3304(a)(14) as provided by PL 94-566 which specify other
conditions or other effective date than stated herein for the
denial of benefits based on services performed by aliens and
which modifications are required to be implemented under
state law as a condition for full tax credit against the tax
imposed by 26 U.S.C. Sec. 3301 shall be deemed applicable
under this section.
(2) Any data or information required of individuals
applying for benefits to determine whether benefits are not
payable to them because of their alien status shall be uniformly required from all applicants for benefits.
(3) In the case of an individual whose application for
benefits would otherwise be approved, no determination that
benefits to the individual are not payable because of his or her
alien status shall be made except upon a preponderance of the
evidence. [1993 c 58 § 2; 1989 c 92 § 1; 1977 ex.s. c 292 §
10.]
(2004 Ed.)
Benefits and Claims
Conflict with federal requirements—Severability—Effective date—
1993 c 58: See notes following RCW 50.04.165.
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
50.20.099
50.20.099 Training benefits—Eligibility to work in
the United States. (1) To ensure that unemployment insurance benefits are paid in accordance with RCW 50.20.098,
the employment security department shall verify that an individual is eligible to work in the United States before the individual receives training benefits under RCW 50.22.150.
(2) By July 1, 2002, the employment security department
shall:
(a) Develop and implement an effective method for
determining, where appropriate, eligibility to work in the
United States for individuals applying for unemployment
benefits under this title;
(b) Review verification systems developed by federal
agencies for verifying a person's eligibility to receive unemployment benefits under this title and evaluate the effectiveness of these systems for use in this state; and
(c) Report its initial findings to the legislature by September 1, 2000, and its final report by July 1, 2002.
(3) Where federal law prohibits the conditioning of
unemployment benefits on a verification of an individual's
status as a qualified or authorized alien, the requirements of
this section shall not apply. [2000 c 2 § 10.]
Conflict with federal requirements—Severability—Effective date—
2000 c 2: See notes following RCW 50.04.355.
50.20.115
ex.s. c 158 § 6; 1945 c 35 § 78; Rem. Supp. 1945 § 9998216.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Effective date—1989 c 380 §§ 78-81: See note following RCW
50.04.150.
Conflict with federal requirements—1989 c 380: See note following
RCW 50.04.150.
Severability—1989 c 380: See RCW 15.58.942 and 15.58.943.
Effective dates—Construction—1977 ex.s. c 33: See notes following
RCW 50.04.030.
Effective date—1973 1st ex.s. c 158: See note following RCW
50.08.020.
50.20.110
50.20.110 Suitable work exceptions. Notwithstanding
any other provisions of this title, no work shall be deemed to
be suitable and benefits shall not be denied under this title to
any otherwise eligible individual for refusing to accept new
work under any of the following conditions:
(1) If the position offered is vacant due directly to a
strike, lockout, or other labor dispute; or
(2) if the remuneration, hours, or other conditions of the
work offered are substantially less favorable to the individual
than those prevailing for similar work in the locality; or
(3) if as a condition of being employed the individual
would be required by the employing unit to join a company
union or to resign from or refrain from joining any bona fide
labor organization. [1945 c 35 § 79; Rem. Supp. 1945 §
9998-217.]
50.20.100
50.20.100 Suitable work factors. (1) Suitable work for
an individual is employment in an occupation in keeping with
the individual's prior work experience, education, or training
and if the individual has no prior work experience, special
education, or training for employment available in the general area, then employment which the individual would have
the physical and mental ability to perform. In determining
whether work is suitable for an individual, the commissioner
shall also consider the degree of risk involved to the individual's health, safety, and morals, the individual's physical fitness, the individual's length of unemployment and prospects
for securing local work in the individual's customary occupation, the distance of the available work from the individual's
residence, and such other factors as the commissioner may
deem pertinent, including state and national emergencies.
(2) For individuals with base year work experience in
agricultural labor, any agricultural labor available from any
employer shall be deemed suitable unless it meets conditions
in RCW 50.20.110 or the commissioner finds elements of
specific work opportunity unsuitable for a particular individual.
(3) For part-time workers as defined in RCW 50.20.119,
suitable work includes suitable work under subsection (1) of
this section that is for seventeen or fewer hours per week.
(4) For individuals who have qualified for unemployment compensation benefits under RCW 50.20.050 (1)(b)(iv)
or (2)(b)(iv), as applicable, an evaluation of the suitability of
the work must consider the individual's need to address the
physical, psychological, legal, and other effects of domestic
violence or stalking. [2004 c 110 § 2; 2003 2nd sp.s. c 4 § 13;
2002 c 8 § 2; 1989 c 380 § 80; 1977 ex.s. c 33 § 6; 1973 1st
(2004 Ed.)
50.20.113
50.20.113 Unemployment of sport or athletic event
participant during period between sport seasons. Benefits
shall not be paid to any individual on the basis of any services, substantially all of which consist of participating in
sports or athletic events or training or preparing to so participate, for any week which commences during the period
between two successive sport seasons (or similar periods) if
the individual performed the services in the first of the seasons (or similar periods) and there is a reasonable assurance
that the individual will perform the services in the latter of the
seasons (or similar periods). [1977 ex.s. c 292 § 6.]
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
50.20.115
50.20.115 Unemployment due to vacation. When an
unemployed individual is qualified for receipt of unemployment compensation benefits by the specific provisions of
RCW 50.20.010, 50.20.120 and 50.20.130, and such individual is not specifically disqualified from receiving such benefits by reason of the provisions of RCW 50.20.090,
50.20.050, 50.20.060, 50.20.070 or 50.20.080, he shall, for
all purposes of the unemployment compensation act, be
deemed to be involuntarily unemployed and entitled to unemployment compensation benefits: PROVIDED, That the cessation of operations by an employer for the purpose of granting vacations, whether by union contract or other reasons,
shall in no manner be construed to be a voluntary quit nor a
voluntary unemployment on the part of the employees. [1983
c 3 § 158; 1951 c 265 § 12.]
Severability—1951 c 265: See note following RCW 50.98.070.
[Title 50 RCW—page 37]
50.20.117
Title 50 RCW: Unemployment Compensation
50.20.117
50.20.117 Jury service. No otherwise eligible individual shall be denied benefits for any week because he or she is
serving as a prospective or impaneled juror in any court of
this state. Compensation received for service as a juror shall
not be considered wages subject to contributions under this
title nor shall such compensation be considered in determining base-year wages, but it shall be considered remuneration
for purposes of a deduction from benefits under RCW
50.20.130. [1979 ex.s. c 135 § 6.]
Severability—1979 ex.s. c 135: See note following RCW 2.36.080.
50.20.118
50.20.118 Unemployment while in approved training. (1) Notwithstanding any other provision of this chapter,
an otherwise eligible individual shall not be denied benefits
for any week because he or she is in training approved under
section 236(a)(1) of the Trade Act of 1974, P.L. 93-618, nor
may that individual be denied benefits for any such week by
reason of leaving work which is not suitable employment to
enter such training, or for failure to meet any requirement of
federal or state law for any such week which relates to the
individual's availability for work, active search for work, or
refusal to accept work.
(2) For the purposes of this section, "suitable employment" means, with respect to an individual, work of a substantially equal or higher skill level than the individual's past
adversely affected employment (as described for the purposes of the Trade Act of 1974, P.L. 93-618), if the wages for
such work are not less than eighty percent of the individual's
average weekly wage as determined for the purposes of the
Trade Act of 1974, P.L. 93-618. [1982 1st ex.s. c 18 § 7.]
Severability—Conflict with federal requirements—1982 1st ex.s. c
18: See notes following RCW 50.12.200.
50.20.119
50.20.119 Part-time workers. (1) With respect to
claims that have an effective date on or after January 2, 2005,
an otherwise eligible individual may not be denied benefits
for any week because the individual is a part-time worker and
is available for, seeks, applies for, or accepts only work of
seventeen or fewer hours per week by reason of the application of RCW 50.20.010(1)(c), 50.20.080, or 50.22.020(1)
relating to availability for work and active search for work, or
failure to apply for or refusal to accept suitable work.
(2) For purposes of this section, "part-time worker"
means an individual who: (a) Earned wages in "employment" in at least forty weeks in the individual's base year; and
(b) did not earn wages in "employment" in more than seventeen hours per week in any weeks in the individual's base
year. [2003 2nd sp.s. c 4 § 12.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
50.20.120
50.20.120 Amount of benefits. (1)(a) Subject to the
other provisions of this title, benefits shall be payable to any
eligible individual during the individual's benefit year in a
maximum amount equal to the lesser of thirty times the
weekly benefit amount, as determined in subsection (2) of
this section, or one-third of the individual's base year wages
under this title: PROVIDED, That as to any week which falls
in a n e xt end e d b e nef it p e ri od a s d e fin e d in R CW
50.22.010(1), an individual's eligibility for maximum benefits in excess of twenty-six times his or her weekly benefit
[Title 50 RCW—page 38]
amount will be subject to the terms and conditions set forth in
RCW 50.22.020.
(b) With respect to claims that have an effective date on
or after the first Sunday of the calendar month immediately
following the month in which the commissioner finds that the
state unemployment rate is six and eight-tenths percent or
less, benefits shall be payable to any eligible individual during the individual's benefit year in a maximum amount equal
to the lesser of twenty-six times the weekly benefit amount,
as determined in subsection (2) of this section, or one-third of
the individual's base year wages under this title.
(2)(a) For claims with an effective date before January 4,
2004, an individual's weekly benefit amount shall be an
amount equal to one twenty-fifth of the average quarterly
wages of the individual's total wages during the two quarters
of the individual's base year in which such total wages were
highest.
(b) With respect to claims with an effective date on or
after January 4, 2004, and before January 2, 2005, an individual's weekly benefit amount shall be an amount equal to one
twenty-fifth of the average quarterly wages of the individual's
total wages during the three quarters of the individual's base
year in which such total wages were highest.
(c) With respect to claims with an effective date on or
after January 2, 2005, an individual's weekly benefit amount
shall be an amount equal to one percent of the total wages
paid in the individual's base year.
(3) The maximum and minimum amounts payable
weekly shall be determined as of each June 30th to apply to
benefit years beginning in the twelve-month period immediately following such June 30th.
(a)(i) With respect to claims that have an effective date
before January 4, 2004, the maximum amount payable
weekly shall be seventy percent of the "average weekly
wage" for the calendar year preceding such June 30th.
(ii) With respect to claims that have an effective date on
or after January 4, 2004, the maximum amount payable
weekly shall be either four hundred ninety-six dollars or
sixty-three percent of the "average weekly wage" for the calendar year preceding such June 30th, whichever is greater.
(b) The minimum amount payable weekly shall be fifteen percent of the "average weekly wage" for the calendar
year preceding such June 30th.
(4) If any weekly benefit, maximum benefit, or minimum benefit amount computed herein is not a multiple of one
dollar, it shall be reduced to the next lower multiple of one
dollar. [2003 2nd sp.s. c 4 § 11; 2002 c 149 § 4; 1993 c 483
§ 12; 1984 c 205 § 1; 1983 1st ex.s. c 23 § 11; 1981 c 35 § 5;
1980 c 74 § 3; 1977 ex.s. c 33 § 7; 1970 ex.s. c 2 § 5; 1959 c
321 § 2; 1955 c 209 § 1; 1951 c 265 § 11; 1949 c 214 § 16;
1945 c 35 § 80; Rem. Supp. 1949 § 9998-218. Prior: 1943 c
127 § 1; 1941 c 253 § 1; 1939 c 214 § 1; 1937 c 162 § 3.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Conflict with federal requirements—Severability—2002 c 149: See
notes following RCW 50.22.140.
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
Conflict with federal requirements—1984 c 205: "If any part of this
act is found to be in conflict with federal requirements which are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
(2004 Ed.)
Benefits and Claims
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1984 c 205 § 11.]
Severability—1984 c 205: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1984 c 205 § 12.]
Effective dates—1984 c 205: "This act is necessary for the immediate
preservation of the public peace, health, and safety, the support of the state
government and its existing public institutions, and shall take effect immediately [March 21, 1984], except as follows:
(1) Sections 6 and 13 of this act shall take effect on January 1, 1985;
(2) Section 7 of this act shall be effective for compensable weeks of
unemployment beginning on or after January 6, 1985; and
(3) Section 9 of this act shall take effect on July 1, 1985." [1984 c 205
§ 14.]
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
Construction—Effective dates—Severability—1981 c 35: See notes
following RCW 50.22.030.
Severability—Effective dates—1980 c 74: See notes following RCW
50.04.323.
Effective dates—Construction—1977 ex.s. c 33: See notes following
RCW 50.04.030.
Effective date—1970 ex.s. c 2: See note following RCW 50.04.020.
Effective date—1959 c 321: See note following RCW 50.20.080.
Severability—1951 c 265: See note following RCW 50.98.070.
50.20.130
50.20.130 Deduction from weekly benefit amount. If
an eligible individual is available for work for less than a full
week, he shall be paid his weekly benefit amount reduced by
one-seventh of such amount for each day that he is unavailable for work: PROVIDED, That if he is unavailable for
work for three days or more of a week, he shall be considered
unavailable for the entire week.
Each eligible individual who is unemployed in any week
shall be paid with respect to such week a benefit in an amount
equal to his weekly benefit amount less seventy-five percent
of that part of the remuneration (if any) payable to him with
respect to such week which is in excess of five dollars. Such
benefit, if not a multiple of one dollar, shall be reduced to the
next lower multiple of one dollar. [1983 1st ex.s. c 23 § 12;
1973 2nd ex.s. c 7 § 3; 1959 c 321 § 3; 1951 c 215 § 15; 1949
c 214 § 17; 1945 c 35 § 81; Rem. Supp. 1949 § 9998-219.
Prior: 1943 c 127 § 1; 1941 c 253 § 1; 1939 c 214 § 1; 1937
c 162 § 3.]
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
Application—1973 2nd ex.s. c 7: See note following RCW 50.04.310.
Effective date—1959 c 321: See note following RCW 50.20.080.
50.20.150
rules and such notices, instructions, and other material as the
commissioner may by rule prescribe. Such printed material
shall be supplied by the commissioner to each employer
without cost to the employer.
The term "application for initial determination" shall
mean a request in writing, or by other means as determined
by the commissioner, for an initial determination. The term
"claim for waiting period" shall mean a certification, after the
close of a given week, that the requirements stated herein for
eligibility for waiting period have been met. The term "claim
for benefits" shall mean a certification, after the close of a
given week, that the requirements stated herein for eligibility
for receipt of benefits have been met.
A representative designated by the commissioner shall
take the application for initial determination and for the claim
for waiting period credits or for benefits. When an application for initial determination has been made, the employment
security department shall promptly make an initial determination which shall be a statement of the applicant's base year
wages, his or her weekly benefit amount, his or her maximum
amount of benefits potentially payable, and his or her benefit
year. Such determination shall fix the general conditions
under which waiting period credit shall be granted and under
which benefits shall be paid during any period of unemployment occurring within the benefit year fixed by such determination. [1998 c 161 § 2; 1951 c 215 § 4; 1945 c 35 § 82; Rem.
Supp. 1945 § 9998-220. Prior: 1943 c 127 § 4; 1941 c 253 §
4; 1939 c 214 § 4; 1937 c 162 § 6.]
Finding—Intent—1998 c 161: "The legislature finds that the shift by
the employment security department from in-person written initial applications for unemployment insurance benefits to a call center approach creates
opportunities for improved service but also raises serious concerns. Eliminating face-to-face contact may increase the potential for fraud and reduce
the probability that claimants will utilize existing reemployment resources.
Therefore, it is the intent of the legislature that if the written application process is to be eliminated, the employment security department must ensure
that unemployment insurance claimants remain actively involved in reemployment activities and that an independent evaluation be conducted of the
call center approach to unemployment insurance." [1998 c 161 § 1.]
Evaluation of call center: "(1) The joint legislative audit and review
committee, in consultation with members of the senate and house of representatives commerce and labor committees and the unemployment insurance
advisory committee, shall conduct an evaluation of the new call center
approach to unemployment insurance. The evaluation shall review the performance of the call center system, including, but not limited to, the: (a)
Promptness of payments; (b) number and types of errors; (c) amount and
types of fraud; and (d) level of overpayments and underpayments, compared
with the current system.
(2) The joint legislative audit and review committee is directed to contract with a private entity consistent with the provisions of chapter 39.29
RCW. The committee shall consult with the unemployment insurance advisory committee in the design of the request for proposals from potential contractors and shall use the advisory committee to evaluate the responses. The
joint legislative audit and review committee shall provide a report on its findings and recommendations to the appropriate standing committee of the senate and house of representatives by September 1, 2001." [1998 c 161 § 5.]
50.20.140
50.20.140 Filing applications and claims—Definitions. An application for initial determination, a claim for
waiting period, or a claim for benefits shall be filed in accordance with such rules as the commissioner may prescribe. An
application for an initial determination may be made by any
individual whether unemployed or not. Each employer shall
post and maintain printed statements of such rules in places
readily accessible to individuals in his or her employment
and shall make available to each such individual at the time
he or she becomes unemployed, a printed statement of such
(2004 Ed.)
Funding—1998 c 161 § 5: "The employment security department is
authorized to expend funds provided under RCW 50.24.014(1)(b) for the
purposes of the evaluation provided for in section 5 of this act." [1998 c 161
§ 6.]
50.20.150
50.20.150 Notice of application or claim. The applicant for initial determination, his most recent employing unit
as stated by the applicant, and any other interested party
which the commissioner by regulation prescribes, shall, if not
previously notified within the same continuous period of
[Title 50 RCW—page 39]
50.20.160
Title 50 RCW: Unemployment Compensation
unemployment, be given notice promptly in writing that an
application for initial determination has been filed and such
notice shall contain the reasons given by the applicant for his
last separation from work. If, during his benefit year, the
applicant becomes unemployed after having accepted subsequent work, and reports for the purpose of reestablishing his
eligibility for benefits, a similar notice shall be given
promptly to his then most recent employing unit as stated by
him, or to any other interested party which the commissioner
by regulation prescribes.
Each base year employer shall be promptly notified of
the filing of any application for initial determination which
may result in a charge to his account. [1970 ex.s. c 2 § 7;
1951 c 215 § 5; 1945 c 35 § 83; Rem. Supp. 1945 § 9998-221.
Prior: 1943 c 127 § 4; 1941 c 253 § 4; 1939 c 214 § 4; 1937
c 162 § 6.]
Effective date—1970 ex.s. c 2: See note following RCW 50.04.020.
50.20.160
50.20.160 Redetermination. (1) A determination of
amount of benefits potentially payable issued pursuant to the
provisions of RCW 50.20.120 and 50.20.140 shall not serve
as a basis for appeal but shall be subject to request by the
claimant for reconsideration and/or for redetermination by
the commissioner at any time within one year from the date
of delivery or mailing of such determination, or any redetermination thereof: PROVIDED, That in the absence of fraud
or misrepresentation on the part of the claimant, any benefits
paid prior to the date of any redetermination which reduces
the amount of benefits payable shall not be subject to recovery under the provisions of RCW 50.20.190. A denial of a
request to reconsider or a redetermination shall be furnished
the claimant in writing and provide the basis for appeal under
the provisions of RCW 50.32.020.
(2) A determination of denial of benefits issued under the
provisions of RCW 50.20.180 shall become final, in absence
of timely appeal therefrom: PROVIDED, That the commissioner may reconsider and redetermine such determinations
at any time within one year from delivery or mailing to correct an error in identity, omission of fact, or misapplication of
law with respect to the facts.
(3) A determination of allowance of benefits shall
become final, in absence of a timely appeal therefrom: PROVIDED, That the commissioner may redetermine such allowance at any time within two years following the benefit year
in which such allowance was made in order to recover any
benefits improperly paid and for which recovery is provided
under the provisions of RCW 50.20.190: AND PROVIDED
FURTHER, That in the absence of fraud, misrepresentation,
or nondisclosure, this provision or the provisions of RCW
50.20.190 shall not be construed so as to permit redetermination or recovery of an allowance of benefits which having
been made after consideration of the provisions of RCW
50.20.010(1)(c), or the provisions of RCW 50.20.050,
50.20.060, 50.20.080, or 50.20.090 has become final.
(4) A redetermination may be made at any time: (a) To
conform to a final court decision applicable to either an initial
determination or a determination of denial or allowance of
benefits; (b) in the event of a back pay award or settlement
affecting the allowance of benefits; or (c) in the case of fraud,
misrepresentation, or willful nondisclosure. Written notice
[Title 50 RCW—page 40]
of any such redetermination shall be promptly given by mail
or delivered to such interested parties as were notified of the
initial determination or determination of denial or allowance
of benefits and any new interested party or parties who, pursuant to such regulation as the commissioner may prescribe,
would be an interested party. [2003 2nd sp.s. c 4 § 31; 1990
c 245 § 4; 1959 c 266 § 4; 1953 ex.s. c 8 § 13; 1951 c 215 §
6; 1945 c 35 § 84; Rem. Supp. 1945 § 9998-222. Prior: 1941
c 253 § 4.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Conflict with federal requirements—1990 c 245: See note following
RCW 50.04.030.
50.20.170 Payment of benefits. An individual who has
received an initial determination finding that he is potentially
entitled to receive waiting period credit or benefits shall, during the benefit year, be given waiting period credit or be paid
benefits in accordance with such initial determination for any
week with respect to which the conditions of eligibility for
such credit or benefits, as prescribed by this title, are met,
unless the individual is denied waiting period credit or benefits under the disqualification provisions of this title.
All benefits shall be paid through employment offices in
accordance with such regulations as the commissioner may
prescribe. [1945 c 35 § 85; Rem. Supp. 1945 § 9998-223.
Prior: 1943 c 127 § 1; 1941 c 253 § 1; 1939 c 214 § 1; 1937
c 162 § 3.]
50.20.170
50.20.180
50.20.180 Denial of benefits. If waiting period credit or
the payment of benefits shall be denied to any claimant for
any week or weeks, the claimant and such other interested
party as the commissioner by regulation prescribes shall be
promptly issued written notice of the denial and the reasons
therefor. In any case where the department is notified in
accordance with such regulation as the commissioner prescribes or has reason to believe that the claimant's right to
waiting period credit or benefits is in issue because of his separation from work for any reason other than lack of work, the
department shall promptly issue a determination of allowance
or denial of waiting period credit or benefits and the reasons
therefor to the claimant, his most recent employing unit as
stated by the claimant, and such other interested party as the
commissioner by regulation prescribes. Notice that waiting
period credit or benefits are allowed or denied shall suffice
for the particular weeks stated in the notice or until the condition upon which the allowance or denial was based has been
changed. [1951 c 215 § 7; 1945 c 38 § 86; Rem. Supp. 1945
§ 9998-224. Prior: 1943 c 127 § 4; 1941 c 253 § 4; 1939 c
214 § 4; 1937 c 162 § 6.]
50.20.190
50.20.190 Recovery of benefit payments. (1) An individual who is paid any amount as benefits under this title to
which he or she is not entitled shall, unless otherwise relieved
pursuant to this section, be liable for repayment of the
amount overpaid. The department shall issue an overpayment assessment setting forth the reasons for and the amount
of the overpayment. The amount assessed, to the extent not
collected, may be deducted from any future benefits payable
to the individual: PROVIDED, That in the absence of a back
pay award, a settlement affecting the allowance of benefits,
(2004 Ed.)
Benefits and Claims
fraud, misrepresentation, or willful nondisclosure, every
determination of liability shall be mailed or personally served
not later than two years after the close of or final payment
made on the individual's applicable benefit year for which the
purported overpayment was made, whichever is later, unless
the merits of the claim are subjected to administrative or judicial review in which event the period for serving the determination of liability shall be extended to allow service of the
determination of liability during the six-month period following the final decision affecting the claim.
(2) The commissioner may waive an overpayment if the
commissioner finds that the overpayment was not the result
of fraud, misrepresentation, willful nondisclosure, or fault
attributable to the individual and that the recovery thereof
would be against equity and good conscience: PROVIDED,
HOWEVER, That the overpayment so waived shall be
charged against the individual's applicable entitlement for the
eligibility period containing the weeks to which the overpayment was attributed as though such benefits had been properly paid.
(3) Any assessment herein provided shall constitute a
determination of liability from which an appeal may be had in
the same manner and to the same extent as provided for
appeals relating to determinations in respect to claims for
benefits: PROVIDED, That an appeal from any determination covering overpayment only shall be deemed to be an
appeal from the determination which was the basis for establishing the overpayment unless the merits involved in the
issue set forth in such determination have already been heard
and passed upon by the appeal tribunal. If no such appeal is
taken to the appeal tribunal by the individual within thirty
days of the delivery of the notice of determination of liability,
or within thirty days of the mailing of the notice of determination, whichever is the earlier, the determination of liability
shall be deemed conclusive and final. Whenever any such
notice of determination of liability becomes conclusive and
final, the commissioner, upon giving at least twenty days
notice by certified mail return receipt requested to the individual's last known address of the intended action, may file
with the superior court clerk of any county within the state a
warrant in the amount of the notice of determination of liability plus a filing fee under RCW 36.18.012(10). The clerk of
the county where the warrant is filed shall immediately designate a superior court cause number for the warrant, and the
clerk shall cause to be entered in the judgment docket under
the superior court cause number assigned to the warrant, the
name of the person(s) mentioned in the warrant, the amount
of the notice of determination of liability, and the date when
the warrant was filed. The amount of the warrant as docketed
shall become a lien upon the title to, and any interest in, all
real and personal property of the person(s) against whom the
warrant is issued, the same as a judgment in a civil case duly
docketed in the office of such clerk. A warrant so docketed
shall be sufficient to support the issuance of writs of execution and writs of garnishment in favor of the state in the manner provided by law for a civil judgment. A copy of the warrant shall be mailed to the person(s) mentioned in the warrant
by certified mail to the person's last known address within
five days of its filing with the clerk.
(4) On request of any agency which administers an
employment security law of another state, the United States,
(2004 Ed.)
50.20.190
or a foreign government and which has found in accordance
with the provisions of such law that a claimant is liable to
repay benefits received under such law, the commissioner
may collect the amount of such benefits from the claimant to
be refunded to the agency. In any case in which under this
section a claimant is liable to repay any amount to the agency
of another state, the United States, or a foreign government,
such amounts may be collected without interest by civil
action in the name of the commissioner acting as agent for
such agency if the other state, the United States, or the foreign government extends such collection rights to the
employment security department of the state of Washington,
and provided that the court costs be paid by the governmental
agency benefiting from such collection.
(5) Any employer who is a party to a back pay award or
settlement due to loss of wages shall, within thirty days of the
award or settlement, report to the department the amount of
the award or settlement, the name and social security number
of the recipient of the award or settlement, and the period for
which it is awarded. When an individual has been awarded or
receives back pay, for benefit purposes the amount of the
back pay shall constitute wages paid in the period for which
it was awarded. For contribution purposes, the back pay
award or settlement shall constitute wages paid in the period
in which it was actually paid. The following requirements
shall also apply:
(a) The employer shall reduce the amount of the back
pay award or settlement by an amount determined by the
department based upon the amount of unemployment benefits received by the recipient of the award or settlement during the period for which the back pay award or settlement
was awarded;
(b) The employer shall pay to the unemployment compensation fund, in a manner specified by the commissioner,
an amount equal to the amount of such reduction;
(c) The employer shall also pay to the department any
taxes due for unemployment insurance purposes on the entire
amount of the back pay award or settlement notwithstanding
any reduction made pursuant to (a) of this subsection;
(d) If the employer fails to reduce the amount of the back
pay award or settlement as required in (a) of this subsection,
the department shall issue an overpayment assessment
against the recipient of the award or settlement in the amount
that the back pay award or settlement should have been
reduced; and
(e) If the employer fails to pay to the department an
amount equal to the reduction as required in (b) of this subsection, the department shall issue an assessment of liability
against the employer which shall be collected pursuant to the
procedures for collection of assessments provided herein and
in RCW 50.24.110.
(6) When an individual fails to repay an overpayment
assessment that is due and fails to arrange for satisfactory
repayment terms, the commissioner shall impose an interest
penalty of one percent per month of the outstanding balance.
Interest shall accrue immediately on overpayments assessed
pursuant to RCW 50.20.070 and shall be imposed when the
assessment becomes final. For any other overpayment, interest shall accrue when the individual has missed two or more
of the individual's monthly payments either partially or in
full. The interest penalty shall be used, first, to fully fund
[Title 50 RCW—page 41]
50.20.191
Title 50 RCW: Unemployment Compensation
either social security number cross-match audits or other
more effective activities that ensure that individuals are entitled to all amounts of benefits that they are paid and, second,
to fund other detection and recovery of overpayment and collection activities. [2003 2nd sp.s. c 4 § 26; 2002 c 371 § 915;
2001 c 146 § 7; 1995 c 90 § 1; 1993 c 483 § 13; 1991 c 117 §
3; 1990 c 245 § 5; 1989 c 92 § 2; 1981 c 35 § 6; 1975 1st ex.s.
c 228 § 3; 1973 1st ex.s. c 158 § 7; 1953 ex.s. c 8 § 14; 1951
c 215 § 8; 1947 c 215 § 18; 1945 c 35 § 87; Rem. Supp. 1947
§ 9998-225. Prior: 1943 c 127 § 12; 1941 c 253 § 13; 1939
c 214 § 14; 1937 c 162 § 16.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Severability—Effective date—2002 c 371: See notes following RCW
9.46.100.
Conflict with federal requirements—1995 c 90: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1995 c 90 § 2.]
Application—1995 c 90: "This act applies to job separations occurring
after July 1, 1995." [1995 c 90 § 3.]
Effective date—1995 c 90: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[April 18, 1995]." [1995 c 90 § 4.]
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
Conflict with federal requirements—Severability—Effective
dates—1991 c 117: See notes following RCW 50.04.030.
Conflict with federal requirements—1990 c 245: See note following
RCW 50.04.030.
Severability—1981 c 35: See note following RCW 50.22.030.
Effective date—1975 1st ex.s. c 228: See note following RCW
50.04.355.
Effective date—1973 1st ex.s. c 158: See note following RCW
50.08.020.
Government or retirement pension plan payments as remuneration or
wages—Recovery of excess over benefits allowable, limitations: RCW
50.04.323.
50.20.191
50.20.191 Authority to compromise benefit overpayments. See RCW 50.24.020.
50.20.192
50.20.192 Collection of benefit overpayments, limitation of actions. See RCW 50.24.190.
50.20.193
50.20.193 Chargeoff of uncollectible benefit overpayments. See RCW 50.24.200.
50.20.195
50.20.195 Assessed interest—Use. All receipts from
interest assessed against unemployment insurance claimants
shall be deposited in the administrative contingency fund and
shall be used for the purpose of RCW 50.20.190(6). [1993 c
483 § 14.]
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
[Title 50 RCW—page 42]
50.20.200
50.20.200 Nonliability of state. Benefits shall be
deemed to be due and payable under this title only to the
extent provided in this title and to the extent that moneys are
available therefor to the credit of the unemployment compensation fund, and neither the state nor the commissioner shall
be liable for any amount in excess of such sums. [1945 c 35
§ 88; Rem. Supp. 1945 § 9998-226.]
50.20.210
50.20.210 Notification of availability of basic health
plan. The commissioner shall notify any person filing a
claim under this chapter who resides in a local area served by
the Washington basic health plan of the availability of basic
health care coverage to qualified enrollees in the Washington
basic health plan under chapter 70.47 RCW, unless the
Washington basic health plan administrator has notified the
commissioner of a closure of enrollment in the area. The
commissioner shall maintain a supply of Washington basic
health plan enrollment application forms, which shall be provided in reasonably necessary quantities by the administrator,
in each appropriate employment service office for the use of
persons wishing to apply for enrollment in the Washington
basic health plan. [1987 1st ex.s. c 5 § 16.]
Severability—1987 1st ex.s. c 5: See note following RCW 70.47.901.
50.20.220
50.20.220 Federal income tax deduction and withholding—Notice—Rules. (1) An individual filing a new
claim for unemployment insurance must, at the time of filing
such claim, be advised that:
(a) Unemployment insurance is subject to federal
income tax;
(b) Requirements exist pertaining to estimated tax payments;
(c) The individual may elect to have federal income tax
deducted and withheld from the individual's payment of
unemployment insurance at the amount specified in the federal internal revenue code; and
(d) The individual is permitted to change a previously
elected withholding status.
(2) Amounts deducted and withheld from unemployment
compensation must remain in the unemployment fund until
transferred to the federal taxing authority as a payment of
income tax.
(3) The commissioner shall follow all procedures specified by the United States department of labor and the federal
internal revenue service pertaining to the deducting and withholding of income tax.
(4) The commissioner shall adopt rules to implement this
section. Amounts shall be deducted and withheld in accordance with the priorities established in rules adopted by the
commissioner. [1996 c 28 § 2.]
Findings—1996 c 28: "The legislature finds that:
(1) The unique federal and state partnership of the unemployment
insurance program places a special responsibility on states, and selected
Congressional legislation requires conforming legislation at the state level;
(2) The most recent conformity legislation requires states to offer
unemployed workers the option of having the employment security department withhold federal income tax from unemployment insurance benefits;
(3) Unemployment benefits have been subject to income tax for several
years, and voluntary withholding is a reasonable strategy some claimants
will use to spread the payment of their federal income tax liability over several weeks or months rather than a single payment at income tax time; and
(4) Conformity with federal law supports the federal and state partner(2004 Ed.)
Extended and Additional Benefits
ship and responds to the needs of this state's unemployed workers." [1996 c
28 § 1.]
Conflict with federal requirements—1996 c 28: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1996 c 28 § 3.]
Severability—1996 c 28: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1996 c 28 § 4.]
Effective date—Application—1996 c 28: "This act shall take effect
December 31, 1996, and shall apply to payments made after December 31,
1996." [1996 c 28 § 5.]
(c) In developing the requirements for the job search
monitoring program, the commissioner or the commissioner's agents shall utilize an existing advisory committee
having equal representation of employers and workers.
(2) Effective January 4, 2004, an individual who fails to
comply fully with the requirements for actively seeking work
under RCW 50.20.010 shall lose all benefits for all weeks
during which the individual was not in compliance, and the
individual shall be liable for repayment of all such benefits
under RCW 50.20.190. [2004 c 110 § 1; 2003 2nd sp.s. c 4 §
10; 2002 c 8 § 3; 1998 c 161 § 4.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Finding—Intent—1998 c 161: See note following RCW 50.20.140.
Chapter 50.22 RCW
EXTENDED AND ADDITIONAL BENEFITS
Chapter 50.22
(Formerly: Extended benefits)
50.20.230
50.20.230 Electronic labor exchange system. The
employment security department will ensure that within a
reasonably short period of time after the initiation of benefits,
all unemployment insurance claimants, except those with
employer attachment, union referral, in commissionerapproved training, or the subject of antiharassment orders,
register for job search in an electronic labor exchange system
that supports direct employer access for the purpose of selecting job applicants. [1998 c 161 § 3.]
Sections
50.22.010
50.22.020
50.22.030
50.22.040
50.22.050
50.22.060
50.22.105
Finding—Intent—1998 c 161: See note following RCW 50.20.140.
50.22.130
50.22.140
50.20.240
50.20.240 Job search monitoring. (1)(a) To ensure
that following the initial application for benefits, an individual is actively engaged in searching for work, the employment security department shall implement a job search monitoring program. Effective January 4, 2004, the department
shall contract with employment security agencies in other
states to ensure that individuals residing in those states and
receiving benefits under this title are actively engaged in
searching for work in accordance with the requirements of
this section. The department may use interactive voice technology and other electronic means to ensure that individuals
are subject to comparable job search monitoring, regardless
of whether they reside in Washington or elsewhere.
(b) Except for those individuals with employer attachment or union referral, individuals who qualify for unemployment compensation under RCW 50.20.050 (1)(b)(iv) or
(2)(b)(iv), as applicable, and individuals in commissionerapproved training, an individual who has received five or
more weeks of benefits under this title, regardless of whether
the individual resides in Washington or elsewhere, must provide evidence of seeking work, as directed by the commissioner or the commissioner's agents, for each week beyond
five in which a claim is filed. With regard to claims with an
effective date before January 4, 2004, the evidence must
demonstrate contacts with at least three employers per week
or documented in-person job search activity at the local
reemployment center. With regard to claims with an effective date on or after January 4, 2004, the evidence must demonstrate contacts with at least three employers per week or
documented in-person job search activities at the local reemployment center at least three times per week.
(2004 Ed.)
50.22.010
50.22.150
Definitions.
Application of statute and rules—Eligibility for extended benefits.
Extended benefit eligibility conditions—Interstate claim.
Weekly extended benefit amount.
Total extended benefit amount—Reduction.
Public announcement when extended benefit period becomes
effective or is terminated—Computations of rate of insured
unemployment.
Supplemental additional benefits—February 26, 1994,
through December 31, 1995—Eligibility.
Training benefits program—Intent.
Employment security department authorized to pay training
benefits—Expenditures.
Training benefits—Eligibility—Payment—Local work force
development council to identify declining and high demand
occupations and skill sets—Rules.
50.22.010
50.22.010 Definitions. As used in this chapter, unless
the context clearly indicates otherwise:
(1) "Extended benefit period" means a period which:
(a) Begins with the third week after a week for which
there is an "on" indicator; and
(b) Ends with the third week after the first week for
which there is an "off" indicator: PROVIDED, That no
extended benefit period shall last for a period of less than
thirteen consecutive weeks, and further that no extended benefit period may begin by reason of an "on" indicator before
the fourteenth week after the close of a prior extended benefit
period which was in effect with respect to this state.
(2) There is an "on" indicator for this state for a week if
the commissioner determines, in accordance with the regulations of the United States secretary of labor, that for the
period consisting of such week and the immediately preceding twelve weeks:
(a) The rate of insured unemployment, not seasonally
adjusted, equaled or exceeded one hundred twenty percent of
the average of such rates for the corresponding thirteen-week
period ending in each of the preceding two calendar years and
equaled or exceeded five percent; or
(b) For benefits for weeks of unemployment beginning
after March 6, 1993:
(i) The average rate of total unemployment, seasonally
adjusted, as determined by the United States secretary of
labor, for the period consisting of the most recent three
[Title 50 RCW—page 43]
50.22.010
Title 50 RCW: Unemployment Compensation
months for which data for all states are published before the
close of the week equals or exceeds six and one-half percent;
and
(ii) The average rate of total unemployment in the state,
seasonally adjusted, as determined by the United States secretary of labor, for the three-month period referred to in (b)(i)
of this subsection, equals or exceeds one hundred ten percent
of the average for either or both of the corresponding threemonth periods ending in the two preceding calendar years.
(3) "High unemployment period" means any period of
unemployment beginning after March 6, 1993, during which
an extended benefit period would be in effect if:
(a) The average rate of total unemployment, seasonally
adjusted, as determined by the United States secretary of
labor, for the period consisting of the most recent three
months for which data for all states are published before the
close of the week equals or exceeds eight percent; and
(b) The average rate of total unemployment in the state,
seasonally adjusted, as determined by the United States secretary of labor, for the three-month period referred to in (a) of
this subsection, equals or exceeds one hundred ten percent of
the average for either or both of the corresponding threemonth periods ending in the two preceding calendar years.
(4) There is an "off" indicator for this state for a week
only if, for the period consisting of such week and immediately preceding twelve weeks, none of the options specified
in subsection (2) or (3) of this section result in an "on" indicator.
(5) "Regular benefits" means benefits payable to an individual under this title or under any state law (including benefits payable to federal civilian employees and to ex-servicemen pursuant to 5 U.S.C. chapter 85) other than extended
benefits or additional benefits.
(6) "Extended benefits" means benefits payable for
weeks of unemployment beginning in an extended benefit
period to an individual under this title or under any state law
(including benefits payable to federal civilian employees and
to ex-servicemen pursuant to 5 U.S.C. chapter 85) other than
regular or additional benefits.
(7) "Additional benefits" are benefits totally financed by
the state and payable under this title to exhaustees by reason
of conditions of high unemployment or by reason of other
special factors.
(8) "Eligibility period" of an individual means the period
consisting of the weeks in his or her benefit year which begin
in an extended benefit period that is in effect in this state and,
if his or her benefit year ends within such extended benefit
period, any weeks thereafter which begin in such period.
(9) "Additional benefit eligibility period" of an individual means the period consisting of the weeks in his or her
benefit year which begin in an additional benefit period that
is in effect and, if his or her benefit year ends within such
additional benefit period, any weeks thereafter which begin
in such period.
(10) "Exhaustee" means an individual who, with respect
to any week of unemployment in his or her eligibility period:
(a) Has received, prior to such week, all of the regular
benefits that were payable to him or her under this title or any
other state law (including dependents' allowances and regular
benefits payable to federal civilian employees and ex-ser[Title 50 RCW—page 44]
vicemen under 5 U.S.C. chapter 85) in his or her current benefit year that includes such week; or
(b) Has received, prior to such week, all of the regular
benefits that were available to him or her under this title or
any other state law (including dependents' allowances and
regular benefits available to federal civilian employees and
ex-servicemen under 5 U.S.C. chapter 85) in his or her current benefit year that includes such week, after the cancellation of some or all of his or her wage credits or the total or
partial reduction of his or her rights to regular benefits: PROVIDED, That, for the purposes of (a) and (b), an individual
shall be deemed to have received in his or her current benefit
year all of the regular benefits that were payable to him or
her, or available to him or her, as the case may be, even
though:
(i) As a result of a pending appeal with respect to wages
or employment, or both, that were not included in the original
monetary determination with respect to his or her current
benefit year, he or she may subsequently be determined to be
entitled to more regular benefits; or
(ii) By reason of the seasonal provisions of another state
law, he or she is not entitled to regular benefits with respect
to such week of unemployment (although he or she may be
entitled to regular benefits with respect to future weeks of
unemployment in the next season, as the case may be, in his
or her current benefit year), and he or she is otherwise an
exhaustee within the meaning of this section with respect to
his or her right to regular benefits under such state law seasonal provisions during the season or off season in which that
week of unemployment occurs; or
(iii) Having established a benefit year, no regular benefits are payable to him or her during such year because his or
her wage credits were canceled or his or her right to regular
benefits was totally reduced as the result of the application of
a disqualification; or
(c) His or her benefit year having ended prior to such
week, he or she has insufficient wages or employment, or
both, on the basis of which he or she could establish in any
state a new benefit year that would include such week, or
having established a new benefit year that includes such
week, he or she is precluded from receiving regular benefits
by reason of the provision in RCW 50.04.030 which meets
the requirement of section 3304(a)(7) of the Federal Unemployment Tax Act, or the similar provision in any other state
law; and
(d)(i) Has no right for such week to unemployment benefits or allowances, as the case may be, under the Railroad
Unemployment Insurance Act, the Trade Expansion Act of
1962, and such other federal laws as are specified in regulations issued by the United States secretary of labor; and
(ii) Has not received and is not seeking for such week
unemployment benefits under the unemployment compensation law of Canada, unless the appropriate agency finally
determines that he or she is not entitled to unemployment
benefits under such law for such week.
(11) "State law" means the unemployment insurance law
of any state, approved by the United States secretary of labor
under section 3304 of the internal revenue code of 1954.
[1993 c 483 § 15; 1985 ex.s. c 5 § 10; 1983 c 1 § 1; 1982 1st
ex.s. c 18 § 2; 1981 c 35 § 7; 1977 ex.s. c 292 § 11; 1973 c 73
§ 7; 1971 c 1 § 2.]
(2004 Ed.)
Extended and Additional Benefits
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
Conflict with federal requirements—Severability—1985 ex.s. c 5:
See notes following RCW 50.62.010.
Severability—Conflict with federal requirements—1982 1st ex.s. c
18: See notes following RCW 50.12.200.
Severability—1981 c 35: See note following RCW 50.22.030.
Application—1977 ex.s. c 292 § 11: "The provisions of section 11 of
this 1977 amendatory act shall apply to the week ending May 21, 1977, and
all weeks thereafter." [1977 ex.s. c 292 § 25.]
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
Effective dates—1973 c 73: See note following RCW 50.04.030.
Emergency—Effective date—1971 c 1: "This 1971 amendatory act is
necessary for the immediate preservation of the public peace, health and
safety, the support of the state government and its existing public institutions, and shall take effect on the Sunday following the day on which the
governor signs this enactment [January 17, 1971]." [1971 c 1 § 11.]
Repealer—Effect as to benefits—1971 c 1: "Section 23, chapter 2,
Laws of 1970 ex. sess. and RCW 50.20.127 are each hereby repealed. No
benefits shall be paid pursuant to RCW 50.20.127 for weeks commencing on
or after the effective date of this 1971 amendatory act." [1971 c 1 § 10.]
50.22.020
50.22.020 Application of statute and rules—Eligibility for extended benefits. When the result would not be
inconsistent with the other provisions of this chapter, the provisions of this title and commissioner's regulations enacted
pursuant thereto, which apply to claims for, or the payment
of, regular benefits, shall apply to claims for, and the payment of, extended benefits: PROVIDED, That
(1) Payment of extended compensation under this chapter shall not be made to any individual for any week of unemployment in his or her eligibility period—
(a) During which he or she fails to accept any offer of
suitable work (as defined in subsection (3) of this section) or
fails to apply for any suitable work to which he or she was
referred by the employment security department; or
(b) During which he or she fails to actively engage in
seeking work.
(2) If any individual is ineligible for extended compensation for any week by reason of a failure described in subsections (1)(a) or (1)(b) of this section, the individual shall be
ineligible to receive extended compensation for any week
which begins during a period which—
(a) Begins with the week following the week in which
such failure occurs; and
(b) Does not end until such individual has been
employed during at least four weeks which begin after such
failure and the total of the remuneration earned by the individual for being so employed is not less than the product of
four multiplied by the individual's weekly benefit amount (as
determined under RCW 50.20.120) for his or her benefit
year.
(3) For purposes of this section, the term "suitable work"
means, with respect to any individual, any work which is
within such individual's capabilities and which does not
in v o l v e c o n d it io n s d e s c r i b e d i n R C W 5 0 . 2 0 . 1 1 0 :
PROVIDED, That if the individual furnishes evidence satisfactory to the employment security department that such individual's prospects for obtaining work in his or her customary
occupation within a reasonably short period are good, the
determination of whether any work is suitable work with
(2004 Ed.)
50.22.020
respect to such individual shall be made in accordance with
RCW 50.20.100.
(4) Extended compensation shall not be denied under
subsection (1)(a) of this section to any individual for any
week by reason of a failure to accept an offer of, or apply for,
suitable work if:
(a) The gross average weekly remuneration payable to
such individual for the position does not exceed the sum of—
(i) The individual's weekly benefit amount (as determined under RCW 50.20.120) for his or her benefit year; plus
(ii) The amount (if any) of supplemental unemployment
compensation benefits (as defined in section 501(c)(17)(D)
of the Internal Revenue Code of 1954, 26 U.S.C. Sec.
501(c)(17)(D)), payable to such individual for such week;
(b) The position was not offered to such individual in
writing and was not listed with the employment security
department;
(c) Such failure would not result in a denial of compensation under the provisions of RCW 50.20.080 and 50.20.100
to the extent such provisions are not inconsistent with the
provisions of subsections (3) and (5) of this section; or
(d) The position pays wages less than the higher of—
(i) The minimum wage provided by section (6)(a)(1) of
the Fair Labor Standards Act of 1938, without regard to any
exemption; or
(ii) Any applicable state or local minimum wage.
(5) For purposes of this section, an individual shall be
treated as actively engaged in seeking work during any week
if:
(a) The individual has engaged in a systematic and sustained effort to obtain work during such week; and
(b) The individual provides tangible evidence to the
employment security department that he or she has engaged
in such an effort during such week.
(6) The employment security department shall refer
applicants for benefits under this chapter to any suitable work
to which subsections (4)(a) through (4)(d) of this section
would not apply.
(7) No provisions of this title which terminates a disqualification for voluntarily leaving employment, being discharged for misconduct, or refusing suitable employment
shall apply for purposes of determining eligibility for
extended compensation unless such termination is based
upon employment subsequent to the date of such disqualification.
(8) The provisions of subsections (1) through (7) of this
section shall apply with respect to weeks of unemployment
beginning after March 31, 1981: PROVIDED HOWEVER,
That the provisions of subsections (1) through (7) of this section shall not apply to those weeks of unemployment beginning after March 6, 1993, and before January 1, 1995. [1993
c 483 § 16; 1993 c 58 § 3; 1981 c 35 § 8; 1971 c 1 § 3.]
Reviser's note: This section was amended by 1993 c 58 § 3 and by
1993 c 483 § 16, each without reference to the other. Both amendments are
incorporated in the publication of this section pursuant to RCW 1.12.025(2).
For rule of construction, see RCW 1.12.025(1).
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
Conflict with federal requirements—Severability—Effective date—
1993 c 58: See notes following RCW 50.04.165.
Construction—Effective dates—Severability—1981 c 35: See notes
following RCW 50.22.030.
[Title 50 RCW—page 45]
50.22.030
Title 50 RCW: Unemployment Compensation
50.22.030
50.22.030 Extended benefit eligibility conditions—
Interstate claim. (1) An individual shall be eligible to
receive extended benefits with respect to any week of
unemployment in his or her eligibility period only if the commissioner finds with respect to such week that:
(a) The individual is an "exhaustee" as defined in RCW
50.22.010;
(b) He or she has satisfied the requirements of this title
for the receipt of regular benefits that are applicable to individuals claiming extended benefits, including not being subject to a disqualification for the receipt of benefits; and
(c) He or she has earned wages in the applicable base
year of at least:
(i) Forty times his or her weekly benefit amount; or
(ii) One and one-half times his or her insured wages in
the calendar quarter of the base period in which the insured
wages are the highest, for weeks of unemployment on or after
July 3, 1992.
(2) An individual filing an interstate claim in any state
under the interstate benefit payment plan shall not be eligible
to receive extended benefits for any week beyond the first
two weeks claimed for which extended benefits are payable
unless an extended benefit period embracing such week is
also in effect in the agent state. [1993 c 483 § 17; 1982 1st
ex.s. c 18 § 4; 1981 c 35 § 9; 1971 c 1 § 4.]
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
Effective dates—1982 1st ex.s. c 18: "Sections 2, 9[10], 10[11],
11[12], 16[17], and 17[18] of this act are necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately
[April 2, 1982]. Section 4 of this act shall take effect on September 26,
1982." [1982 1st ex.s. c 18 § 23.] The bracketed section references in this
section correct erroneous internal references which occurred during the
engrossing process after a new section was added by amendment.
Severability—Conflict with federal requirements—1982 1st ex.s. c
18: See notes following RCW 50.12.200.
Construction—1981 c 35 §§ 3, 5, 8, and 9: "Sections 3, 5, and 8 of this
1981 amendatory act are being enacted to comply with the provisions of Pub.
L. 96-499. Ambiguities in those sections should be interpreted in accordance
with provisions of that federal law. Section 9 of this 1981 amendatory act is
enacted pursuant to Pub. L. 96-364. Any ambiguities in that section should
be construed in accordance with that federal law." [1981 c 35 § 15.]
Effective dates—1981 c 35 §§ 1, 2, 3, 5, 8, 9, and 12: "Sections 1, 2,
3, 5, 8, and 12 of this amendatory act are necessary for the immediate preservation of the public peace, health and safety, the support of the state government and its existing public institutions and shall take effect immediately
[April 20, 1981]; section 9 of this amendatory act is necessary for the immediate preservation of the public peace, health and safety, the support of the
state government and its existing public institutions and shall take effect with
weeks beginning on and after June 1, 1981." [1981 c 35 § 16.]
Severability—1981 c 35: "If any provision of this amendatory act or its
application to any person or circumstance is held invalid, the remainder of
the act or the application of the provision to other persons or circumstances
is not affected." [1981 c 35 § 17.]
shall be reduced to the next lower multiple of one dollar.
[1983 1st ex.s. c 23 § 13; 1971 c 1 § 5.]
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
50.22.050
50.22.050 Total extended benefit amount—Reduction. (1) The total extended benefit amount payable to any
eligible individual with respect to his or her applicable benefit year shall be the least of the following amounts:
(a) Fifty percent of the total amount of regular benefits
which were payable to him or her under this title in his or her
applicable benefit year;
(b) Thirteen times his or her weekly benefit amount
which was payable to him or her under this title for a week of
total unemployment in the applicable benefit year; or
(c) Thirty-nine times his or her weekly benefit amount
which was payable to him or her under this title for a week of
total unemployment in the applicable benefit year, reduced
by the total amount of regular benefits which were paid (or
deemed paid) to him or her under this title with respect to the
benefit year.
(2) Notwithstanding any other provision of this chapter,
if the benefit year of any eligible individual ends within an
extended benefit period, the extended benefits which the individual would otherwise be entitled to receive with respect to
weeks of unemployment beginning after the end of the benefit year and within the extended benefit period shall be
reduced (but not below zero) by the product of the number of
weeks for which the individual received any amount as a
trade readjustment allowance within that benefit year, multiplied by the individual's weekly extended benefit amount.
(3) Effective for weeks beginning in a high unemployment period as defined in RCW 50.22.010(3) the total
extended benefit amount payable to any eligible individual
with respect to his or her applicable benefit year shall be the
least of the following amounts:
(a) Eighty percent of the total amount of regular benefits
that were payable to him or her under this title in his or her
applicable benefit year;
(b) Twenty times his or her weekly benefit amount that
was payable to him or her under this title for a week of total
unemployment in the applicable benefit year; or
(c) Forty-six times his or her weekly benefit amount that
was payable to him or her under this title for a week of total
unemployment in the applicable benefit year, reduced by the
total amount of regular benefits which were paid, or deemed
paid, to him or her under this title with respect to the benefit
year. [1993 c 483 § 18; 1982 1st ex.s. c 18 § 5; 1971 c 1 § 6.]
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
Severability—Conflict with federal requirements—1982 1st ex.s. c
18: See notes following RCW 50.12.200.
50.22.040
50.22.040 Weekly extended benefit amount. The
weekly extended benefit amount payable to an individual for
a week of total unemployment in his eligibility period shall
be an amount equal to the weekly benefit amount payable to
him during his applicable benefit year. However, for those
individuals whose eligibility period for extended benefits
commences with weeks beginning after October 1, 1983, the
weekly benefit amount, as computed in RCW 50.20.120(2)
and payable under this section, if not a multiple of one dollar,
[Title 50 RCW—page 46]
50.22.060
50.22.060 Public announcement when extended benefit period becomes effective or is terminated—Computations of rate of insured unemployment. (1) Whenever an
extended benefit period is to become effective in this state (or
in all states) as a result of an "on" indicator, or an extended
benefit period is to be terminated in this state as a result of an
"off" indicator, the commissioner shall make an appropriate
public announcement.
(2004 Ed.)
Extended and Additional Benefits
(2) Computations required by the provisions of RCW
50.22.010(4) shall be made by the commissioner, in accordance with regulations prescribed by the United States secretary of labor. [1982 1st ex.s. c 18 § 3; 1971 c 1 § 7.]
Severability—Conflict with federal requirements—1982 1st ex.s. c
18: See notes following RCW 50.12.200.
50.22.105 Supplemental additional benefits—February 26, 1994, through December 31, 1995—Eligibility.
Supplemental additional benefits shall be available to individuals who, under this chapter, had a balance of extended
benefits available after payments up to and including the
week ending February 26, 1994.
(1) Total supplemental additional benefits payable shall
be equal to the extended benefit balance remaining after
extended benefit payments for up to and including the week
ending February 26, 1994, and shall be paid at the same
weekly benefit amount.
(2) The week ending March 5, 1994, is the first week for
which supplemental additional benefits are payable.
(3) Supplemental additional benefits shall be paid under
the same terms and conditions as extended benefits.
(4) Supplemental additional benefits are not payable for
weeks more than one year beyond the end of the benefit year
of the regular claim.
(5) Weeks of supplemental additional benefits may not
be paid for weeks that begin after the start of a new extended
benefit period, or any totally federally funded benefit program with eligibility criteria and benefits comparable to additional benefits.
(6) Weeks of supplemental additional benefits may not
be paid for weeks of unemployment beginning after December 31, 1995.
(7) The department shall seek federal funding to reimburse the state for the supplemental additional benefits paid
under this section. Any federal funds received by the state for
reimbursement shall be deposited in the unemployment trust
fund solely for the payment of benefits under this title. [1994
c 3 § 3.]
50.22.105
Conflict with federal requirements—Severability—Effective
dates—1994 c 3: See notes following RCW 50.04.020.
50.22.150
that individuals for whom suitable employment is available
are not eligible for additional benefits while participating in
training.
The legislature further intends that funding for this program be limited by a specified maximum amount each fiscal
year. [2000 c 2 § 6.]
Conflict with federal requirements—Severability—Effective date—
2000 c 2: See notes following RCW 50.04.355.
50.22.140
50.22.140 Employment security department authorized to pay training benefits—Expenditures. (1) The
employment security department is authorized to pay training
benefits under RCW 50.22.150, but may not obligate expenditures beyond the limits specified in this section or as otherwise set by the legislature. For the fiscal year ending June 30,
2000, the commissioner may not obligate more than twenty
million dollars for training benefits. For the two fiscal years
ending June 30, 2002, the commissioner may not obligate
more than sixty million dollars for training benefits. Any
funds not obligated in one fiscal year may be carried forward
to the next fiscal year. For each fiscal year beginning after
June 30, 2002, the commissioner may not obligate more than
twenty million dollars annually in addition to any funds carried forward from previous fiscal years. The department shall
develop a process to ensure that expenditures do not exceed
available funds and to prioritize access to funds when again
available.
(2) After June 30, 2002, in addition to the amounts that
may be obligated under subsection (1) of this section, the
commissioner may obligate up to thirty-four million dollars
for training benefits under RCW 50.22.150 for individuals in
the aerospace industry assigned the standard industrial classification code "372" or the North American industry classification system code "336411" whose claims are filed before
January 5, 2003. The funds provided in this subsection must
be fully obligated for training benefits for these individuals
before the funds provided in subsection (1) of this section
may be obligated for training benefits for these individuals.
Any amount of the funds specified in this subsection that is
not obligated as permitted may not be carried forward to any
future period. [2002 c 149 § 1; 2000 2nd sp.s. c 1 § 916; 2000
c 2 § 7.]
50.22.130
50.22.130 Training benefits program—Intent. It is
the intent of the legislature that a training benefits program be
established to provide unemployment insurance benefits to
unemployed individuals who participate in training programs
necessary for their reemployment.
The legislature further intends that this program serve
the following goals:
(1) Retraining should be available for those unemployed
individuals whose skills are no longer in demand;
(2) To be eligible for retraining, an individual must have
a long-term attachment to the labor force;
(3) Training must enhance the individual's marketable
skills and earning power; and
(4) Retraining must be targeted to those industries or
skills that are in high demand within the labor market.
Individuals unemployed as a result of structural changes
in the economy and technological advances rendering their
skills obsolete must receive the highest priority for participation in this program. It is the further intent of the legislature
(2004 Ed.)
Conflict with federal requirements—2002 c 149: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this
act. Rules adopted under this act must meet federal requirements that are a
necessary condition to the receipt of federal funds by the state or the granting
of federal unemployment tax credits to employers in this state." [2002 c 149
§ 15.]
Severability—2002 c 149: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [2002 c 149 § 16.]
Severability—Effective date—2000 2nd sp.s. c 1: See notes following RCW 41.05.143.
Conflict with federal requirements—Severability—Effective date—
2000 c 2: See notes following RCW 50.04.355.
50.22.150
50.22.150 Training benefits—Eligibility—Payment—Local work force development council to identify
[Title 50 RCW—page 47]
50.22.150
Title 50 RCW: Unemployment Compensation
declining and high demand occupations and skill sets—
Rules. (1) Subject to availability of funds, training benefits
are available for an individual who is eligible for or has
exhausted entitlement to unemployment compensation benefits and who:
(a) Is a dislocated worker as defined in RCW 50.04.075;
(b) Except as provided under subsection (2) of this section, has demonstrated, through a work history, sufficient tenure in an occupation or in work with a particular skill set.
This screening will take place during the assessment process;
(c) Is, after assessment of demand for the individual's
occupation or skills in the individual's labor market, determined to need job-related training to find suitable employment in his or her labor market. Beginning July 1, 2001, the
assessment of demand for the individual's occupation or skill
sets must be substantially based on declining occupation or
skill sets identified in local labor market areas by the local
work force development councils, in cooperation with the
employment security department and its labor market information division, under subsection (10) of this section;
(d) Develops an individual training program that is submitted to the commissioner for approval within sixty days
after the individual is notified by the employment security
department of the requirements of this section;
(e) Enters the approved training program by ninety days
after the date of the notification, unless the employment security department determines that the training is not available
during the ninety-day period, in which case the individual
enters training as soon as it is available; and
(f) Is enrolled in training approved under this section on
a full-time basis as determined by the educational institution,
and is making satisfactory progress in the training as certified
by the educational institution.
(2) Until June 30, 2002, the following individuals who
meet the requirements of subsection (1) of this section may,
without regard to the tenure requirements under subsection
(1)(b) of this section, receive training benefits as provided in
this section:
(a) An exhaustee who has base year employment in the
aerospace industry assigned the standard industrial classification code "372" or the North American industry classification
system code "336411";
(b) An exhaustee who has base year employment in the
forest products industry, determined by the department, but
including the industries assigned the major group standard
industrial classification codes "24" and "26" or any equivalent codes in the North American industry classification system code, and the industries involved in the harvesting and
management of logs, transportation of logs and wood products, processing of wood products, and the manufacturing
and distribution of wood processing and logging equipment;
or
(c) An exhaustee who has base year employment in the
fishing industry assigned the standard industrial classification code "0912" or any equivalent codes in the North American industry classification system code.
(3) An individual is not eligible for training benefits
under this section if he or she:
(a) Is a standby claimant who expects recall to his or her
regular employer;
[Title 50 RCW—page 48]
(b) Has a definite recall date that is within six months of
the date he or she is laid off; or
(c) Is unemployed due to a regular seasonal layoff which
demonstrates a pattern of unemployment consistent with the
provisions of *RCW 50.20.015. Regular seasonal layoff does
not include layoff due to permanent structural downsizing or
structural changes in the individual's labor market.
(4) The definitions in this subsection apply throughout
this section unless the context clearly requires otherwise.
(a) "Educational institution" means an institution of
higher education as defined in RCW 28B.10.016 or an educational institution as defined in RCW 28C.04.410, including
equivalent educational institutions in other states.
(b) "Sufficient tenure" means earning a plurality of
wages in a particular occupation or using a particular skill set
during the base year and at least two of the four twelve-month
periods immediately preceding the base year.
(c) "Training benefits" means additional benefits paid
under this section.
(d) "Training program" means:
(i) An education program determined to be necessary as
a prerequisite to vocational training after counseling at the
educational institution in which the individual enrolls under
his or her approved training program; or
(ii) A vocational training program at an educational institution:
(A) That is targeted to training for a high demand occupation. Beginning July 1, 2001, the assessment of high
demand occupations authorized for training under this section must be substantially based on labor market and employment information developed by local work force development councils, in cooperation with the employment security
department and its labor market information division, under
subsection (10) of this section;
(B) That is likely to enhance the individual's marketable
skills and earning power; and
(C) That meets the criteria for performance developed by
the work force training and education coordinating board for
the purpose of determining those training programs eligible
for funding under Title I of P.L. 105-220.
"Training program" does not include any course of education primarily intended to meet the requirements of a baccalaureate or higher degree, unless the training meets specific
requirements for certification, licensing, or for specific skills
necessary for the occupation.
(5) Benefits shall be paid as follows:
(a)(i) Except as provided in (a)(iii) of this subsection, for
exhaustees who are eligible under subsection (1) of this section, the total training benefit amount shall be fifty-two times
the individual's weekly benefit amount, reduced by the total
amount of regular benefits and extended benefits paid, or
deemed paid, with respect to the benefit year; or
(ii) For exhaustees who are eligible under subsection (2)
of this section, for claims filed before June 30, 2002, the total
training benefit amount shall be seventy-four times the individual's weekly benefit amount, reduced by the total amount
of regular benefits and extended benefits paid, or deemed
paid, with respect to the benefit year; or
(iii) For exhaustees eligible under subsection (1) of this
section from industries listed under subsection (2)(a) of this
section, for claims filed on or after June 30, 2002, but before
(2004 Ed.)
Contributions by Employers
January 5, 2003, the total training benefit amount shall be
seventy-four times the individual's weekly benefit amount,
reduced by the total amount of regular benefits and extended
benefits paid, or deemed paid, with respect to the benefit
year.
(b) The weekly benefit amount shall be the same as the
regular weekly amount payable during the applicable benefit
year and shall be paid under the same terms and conditions as
regular benefits. The training benefits shall be paid before
any extended benefits but not before any similar federally
funded program.
(c) Training benefits are not payable for weeks more
than two years beyond the end of the benefit year of the regular claim.
(6) The requirement under RCW 50.22.010(10) relating
to exhausting regular benefits does not apply to an individual
otherwise eligible for training benefits under this section
when the individual's benefit year ends before his or her training benefits are exhausted and the individual is eligible for a
new benefit year. These individuals will have the option of
remaining on the original claim or filing a new claim.
(7)(a) Except as provided in (b) of this subsection, individuals who receive training benefits under this section or
under any previous additional benefits program for training
are not eligible for training benefits under this section for five
years from the last receipt of training benefits under this section or under any previous additional benefits program for
training.
(b) With respect to claims that are filed before January 5,
2003, an individual in the aerospace industry assigned the
standard industrial code "372" or the North American industry classification system code "336411" who received training benefits under this section, and who had been making satisfactory progress in a training program but did not complete
the program, is eligible, without regard to the five-year limitation of this section and without regard to the requirement of
subsection (1)(b) of this section, if applicable, to receive
training benefits under this section in order to complete that
training program. The total training benefit amount that
applies to the individual is seventy-four times the individual's
weekly benefit amount, reduced by the total amount of regular benefits paid, or deemed paid, with respect to the benefit
year in which the training program resumed and, if applicable, reduced by the amount of training benefits paid, or
deemed paid, with respect to the benefit year in which the
training program commenced.
(8) An individual eligible to receive a trade readjustment
allowance under chapter 2 of Title II of the Trade Act of
1974, as amended, shall not be eligible to receive benefits
under this section for each week the individual receives such
trade readjustment allowance. An individual eligible to
receive emergency unemployment compensation, so called,
under any federal law, shall not be eligible to receive benefits
under this section for each week the individual receives such
compensation.
(9) All base year employers are interested parties to the
approval of training and the granting of training benefits.
(10) By July 1, 2001, each local work force development
council, in cooperation with the employment security department and its labor market information division, must identify
occupations and skill sets that are declining and occupations
(2004 Ed.)
Chapter 50.24
and skill sets that are in high demand. For the purposes of
RCW 50.22.130 through 50.22.150 and section 9, chapter 2,
Laws of 2000, "high demand" means demand for employment that exceeds the supply of qualified workers for occupations or skill sets in a labor market area. Local work force
development councils must use state and locally developed
labor market information. Thereafter, each local work force
development council shall update this information annually
or more frequently if needed.
(11) The commissioner shall adopt rules as necessary to
implement this section. [2002 c 149 § 2; 2000 c 2 § 8.]
*Reviser's note: RCW 50.20.015 was repealed by 2003 2nd sp.s. c 4 §
35.
Effective dates—2002 c 149 §§ 2 and 8: "(1) Section 2 of this act is
necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public institutions,
and takes effect immediately [March 26, 2002].
(2) Section 8 of this act takes effect January 1, 2005." [2002 c 149 §
19.]
Conflict with federal requirements—Severability—2002 c 149: See
notes following RCW 50.22.140.
Application—2000 c 2 §§ 1, 2, 4, 5, 8, and 12-15: "(1) Sections 1, 2,
4, 5, and 15 of this act apply to rate years beginning on or after January 1,
2000.
(2)(a) Except as provided under (b) of this subsection, sections 8 and
12 through 14 of this act apply beginning with weeks of unemployment that
begin on or after the Sunday following the day on which the governor signs
chapter 2, Laws of 2000 [February 13, 2000].
(b) For individuals eligible under section 8(2)(a) of this act who are
enrolled in a national reserve grant on February 7, 2000, section 8 of this act
applies beginning with weeks of unemployment that begin after the termination of their needs-related payments under a national reserve grant." [2000 c
2 § 16.]
Conflict with federal requirements—Severability—Effective date—
2000 c 2: See notes following RCW 50.04.355.
Chapter 50.24
Chapter 50.24 RCW
CONTRIBUTIONS BY EMPLOYERS
Sections
50.24.010
50.24.014
50.24.015
50.24.020
50.24.030
50.24.040
50.24.050
50.24.060
50.24.070
50.24.080
50.24.090
50.24.100
50.24.110
50.24.115
50.24.120
50.24.125
50.24.130
50.24.140
50.24.150
50.24.160
50.24.170
50.24.180
50.24.190
50.24.200
Payment of contributions—Amount of wages subject to tax—
Wages paid by employers making payments in lieu of contributions not remuneration.
Financing special unemployment assistance—Financing the
employment security department's administrative costs—
Accounts—Contributions.
Wages—Deemed paid when contractually due.
Authority to compromise.
Contributions erroneously paid to United States or another
state.
Interest on delinquent contributions.
Lien for contributions generally.
Lien in event of insolvency or dissolution.
Order and notice of assessment.
Jeopardy assessment.
Distraint, seizure, and sale.
Distraint procedure.
Notice and order to withhold and deliver.
Warrant—Authorized—Filing—Lien—Enforcement.
Collection by civil action.
Collection by civil action—Collection of delinquent payments
in lieu of contributions from political subdivisions or instrumentalities thereof.
Contractor's and principal's liability for contributions—Exceptions.
Collection remedies cumulative.
Contribution adjustments and refunds.
Election of coverage.
Joint accounts.
Injunction proceedings.
Limitation of actions.
Chargeoff of uncollectible accounts.
[Title 50 RCW—page 49]
50.24.010
50.24.210
Title 50 RCW: Unemployment Compensation
Contributions due and payable upon termination or disposal of
business—Successor liability.
Construction—Compliance with federal act—1971 c 3: See RCW
50.44.080.
Effective date—1970 ex.s. c 2: See note following RCW 50.04.020.
50.24.010
50.24.010 Payment of contributions—Amount of
wages subject to tax—Wages paid by employers making
payments in lieu of contributions not remuneration. Contributions shall accrue and become payable by each employer
(except employers as described in RCW 50.44.010 who have
properly elected to make payments in lieu of contributions
and those employers who are required to make payments in
lieu of contributions) for each calendar year in which the
employer is subject to this title at the rate established pursuant to chapter 50.29 RCW.
In each rate year, the amount of wages subject to tax for
each individual shall be one hundred fifteen percent of the
amount of wages subject to tax for the previous year rounded
to the next lower one hundred dollars, except that the amount
of wages subject to tax in any rate year shall not exceed
eighty percent of the "average annual wage for contributions
purposes" for the second preceding calendar year rounded to
the next lower one hundred dollars. However, the amount
subject to tax shall be twenty-four thousand three hundred
dollars for rate year 2000.
In making computations under this section and RCW
50.29.010, wages paid based on services for employers making payments in lieu of contributions shall not be considered
remuneration. Moneys paid from the fund, based on services
performed for employers who make payments in lieu of contributions, which have not been reimbursed to the fund as of
any June 30 shall be deemed an asset of the unemployment
compensation fund, to the extent that such moneys exceed the
amount of payments in lieu of contributions which the commissioner has previously determined to be uncollectible:
PROVIDED, FURTHER, That the amount attributable to
employment with the state shall also include interest as provided for in RCW 50.44.020.
Contributions shall become due and be paid by each
employer to the treasurer for the unemployment compensation fund in accordance with such regulations as the commissioner may prescribe, and shall not be deducted, in whole or
in part, from the remuneration of individuals in employment
of the employer. Any deduction in violation of the provisions
of this section shall be unlawful.
In the payment of any contributions, a fractional part of
a cent shall be disregarded unless it amounts to one-half cent
or more, in which case it shall be increased to one cent. [2000
c 2 § 2; 1984 c 205 § 2; 1977 ex.s. c 33 § 9; 1971 c 3 § 13;
1970 ex.s. c 2 § 8; 1949 c 214 § 18; 1945 c 35 § 89; Rem.
Supp. 1949 § 9998-227. Prior: 1943 c 127 § 5; 1941 c 253 §
5; 1939 c 214 § 5; 1937 c 162 § 7.]
Reviser's note: Referendum Measure No. 53 was rejected by the voters
at the November 2002 election. This section has been returned to the status
existing before its amendment by 2002 c 149.
Application—2000 c 2 §§ 1, 2, 4, 5, 8, and 12-15: See note following
RCW 50.22.150.
Conflict with federal requirements—Severability—Effective date—
2000 c 2: See notes following RCW 50.04.355.
Conflict with federal requirements—Severability—Effective
dates—1984 c 205: See notes following RCW 50.20.120.
Effective dates—Construction—1977 ex.s. c 33: See notes following
RCW 50.04.030.
[Title 50 RCW—page 50]
50.24.014
50.24.014 Financing special unemployment assistance—Financing the employment security department's
administrative costs—Accounts—Contributions. (1)(a) A
separate and identifiable account to provide for the financing
of special programs to assist the unemployed is established in
the administrative contingency fund. All money in this
account shall be expended solely for the purposes of this title
and for no other purposes whatsoever. Contributions to this
account shall accrue and become payable by each employer,
except employers as described in RCW 50.44.010 and
50.44.030 who have properly elected to make payments in
lieu of contributions, taxable local government employers as
described in RCW 50.44.035, and those employers who are
required to make payments in lieu of contributions, at a basic
rate of two one-hundredths of one percent. The amount of
wages subject to tax shall be determined under RCW
50.24.010.
(b) A separate and identifiable account is established in
the administrative contingency fund for financing the
employment security department's administrative cost under
RCW 50.22.150 and the costs under RCW 50.22.150(9). All
money in this account shall be expended solely for the purposes of this title and for no other purposes whatsoever. Contributions to this account shall accrue and become payable by
each employer, except employers as described in RCW
50.44.010 and 50.44.030 who have properly elected to make
payments in lieu of contributions, taxable local government
employers as described in RCW 50.44.035, those employers
who are required to make payments in lieu of contributions,
those employers described under RCW 50.29.025(1)(f)(ii),
and those qualified employers assigned rate class 20 or rate
class 40, as applicable, under RCW 50.29.025, at a basic rate
of one one-hundredth of one percent. The amount of wages
subject to tax shall be determined under RCW 50.24.010.
Any amount of contributions payable under this subsection
(1)(b) that exceeds the amount that would have been collected at a rate of four one-thousandths of one percent must
be deposited in the unemployment compensation trust fund.
(c) For the first calendar quarter of 1994 only, the basic
two one-hundredths of one percent contribution payable
under (a) of this subsection shall be increased by one-hundredth of one percent to a total rate of three one-hundredths
of one percent. The proceeds of this incremental one-hundredth of one percent shall be used solely for the purposes
described in section 22, chapter 483, Laws of 1993, and for
the purposes of conducting an evaluation of the call center
approach to unemployment insurance under section 5, chapter 161, Laws of 1998. During the 1997-1999 fiscal biennium, any surplus from contributions payable under this subsection (c) may be deposited in the unemployment compensation trust fund, used to support tax and wage automated
systems projects that simplify and streamline employer
reporting, or both.
(2)(a) Contributions under this section shall become due
and be paid by each employer under rules as the commissioner may prescribe, and shall not be deducted, in whole or
in part, from the remuneration of individuals in the employ of
(2004 Ed.)
Contributions by Employers
the employer. Any deduction in violation of this section is
unlawful.
(b) In the payment of any contributions under this section, a fractional part of a cent shall be disregarded unless it
amounts to one-half cent or more, in which case it shall be
increased to one cent.
(3) If the commissioner determines that federal funding
has been increased to provide financing for the services specified in chapter 50.62 RCW, the commissioner shall direct
that collection of contributions under this section be terminated on the following January 1st. [2003 2nd sp.s. c 4 § 25;
2000 c 2 § 15. Prior: 1998 c 346 § 901; 1998 c 161 § 7; 1994
c 187 § 3; 1993 c 483 § 20; 1987 c 171 § 4; 1985 ex.s. c 5 § 8.]
Reviser's note: Referendum Measure No. 53 was rejected by the voters
at the November 2002 election. This section has been returned to the status
existing before its amendment by 2002 c 149.
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Application—2000 c 2 §§ 1, 2, 4, 5, 8, and 12-15: See note following
RCW 50.22.150.
Conflict with federal requirements—Severability—Effective date—
2000 c 2: See notes following RCW 50.04.355.
Construction—1998 c 346: "This act shall not be construed as affecting any right or cause of action asserted in Washington State Legislature v.
State of Washington (Thurston county superior court cause no. 98-2-001051)." [1998 c 346 § 912.]
Severability—1998 c 346: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1998 c 346 § 914.]
Effective date—1998 c 346: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[April 3, 1998]." [1998 c 346 § 915.]
Finding—Intent—1998 c 161: See note following RCW 50.20.140.
Conflict with federal requirements—1994 c 187: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1994 c 187 § 6.]
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
Conflict with federal requirements—Severability—1987 c 171: See
notes following RCW 50.62.010.
Conflict with federal requirements—Severability—1985 ex.s. c 5:
See notes following RCW 50.62.010.
50.24.015
50.24.015 Wages—Deemed paid when contractually
due. For the purposes of liability for, collection of, and
assessment of contributions, wages shall be deemed paid
when such wages are contractually due but are unpaid
because of the refusal or inability of the employer to make
such payment. [1973 1st ex.s. c 158 § 19.]
Effective date—1973 1st ex.s. c 158: See note following RCW
50.08.020.
50.24.020
50.24.020 Authority to compromise. The commissioner may compromise any claim for contributions, interest,
or penalties, and any amount owed by an individual because
of benefit overpayments, whether reduced to judgment or
(2004 Ed.)
50.24.040
otherwise, existing or arising under this title in any case
where collection of the full claim, in the case of contributions, interest, or penalties, would result in the insolvency of
the employing unit or individual from whom such contributions, interest, or penalties are claimed, and any case where
collection of the full amount of benefit overpayments made
to an individual, whether reduced to judgment or otherwise,
would be against equity and good conscience.
Whenever a compromise is made by the commissioner in
the case of a claim for contributions, interest, or penalties,
there shall be placed on file in the office of the unemployment compensation division a statement of the amount of
contributions, interest, and penalties imposed by law and
claimed due, a complete record of the compromise agreement
and the amount actually paid in accordance with the terms of
the compromise agreement. Whenever a compromise is made
by the commissioner in the case of a claim of a benefit overpayment, whether reduced to judgment or otherwise, there
shall be placed on file in the office of the unemployment
compensation division a statement of the amount of the benefit overpayment, attorneys' fees and costs, if any, a complete
record of the compromise agreement and the amount actually
paid in accordance with the terms of the compromise agreement.
If any such compromise is accepted by the commissioner, within such time as may be stated in the compromise
or agreed to, such compromise shall be final and conclusive
and except upon showing of fraud or malfeasance or misrepresentation of a material fact the case shall not be reopened as
to the matters agreed upon. In any suit, action, or proceeding,
such agreement or any determination, collection, payment,
adjustment, refund, or credit made in accordance therewith
shall not be annulled, modified, set aside, or disregarded.
[1983 1st ex.s. c 23 § 14; 1955 c 286 § 5; 1945 c 35 § 90;
Rem. Supp. 1945 § 9998-228.]
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
Effective date—1955 c 286: "The provisions of section 5 of this act
shall not become effective until the 3rd day of July, 1955." [1955 c 286 §
17.]
50.24.030
50.24.030 Contributions erroneously paid to United
States or another state. Payments of contributions erroneously paid to an unemployment compensation fund of
another state or to the United States government which
should have been paid to this state and which thereafter shall
be refunded by such other state or the United States government and paid by the employer to this state, shall be deemed
to have been paid to this state and to have filed contribution
reports thereon at the date of payment to the United States
government or such other state. [1953 ex.s. c 8 § 15; 1949 c
214 § 19; 1945 c 35 § 91; Rem. Supp. 1949 § 9998-229.]
50.24.040
50.24.040 Interest on delinquent contributions. If
contributions are not paid on the date on which they are due
and payable as prescribed by the commissioner, the whole or
part thereof remaining unpaid shall bear interest at the rate of
one percent per month or fraction thereof from and after such
date until payment plus accrued interest is received by him.
The date as of which payment of contributions, if mailed, is
deemed to have been received may be determined by such
[Title 50 RCW—page 51]
50.24.050
Title 50 RCW: Unemployment Compensation
regulations as the commissioner may prescribe. Interest collected pursuant to this section shall be paid into the administrative contingency fund. Interest shall not accrue on contributions from any estate in the hands of a receiver, executor,
administrator, trustee in bankruptcy, common law assignee or
other liquidating officer subsequent to the date when such
receiver, executor, administrator, trustee in bankruptcy, common law assignee or other liquidating officer qualifies as
such, but contributions accruing with respect to employment
of persons by any receiver, executor, administrator, trustee in
bankruptcy, common law assignee or other liquidating
officer shall become due and shall draw interest in the same
manner as contributions due from other employers. Where
adequate information has been furnished the department and
the department has failed to act or has advised the employer
of no liability or inability to decide the issue, interest may be
waived. [1987 c 111 § 3; 1973 1st ex.s. c 158 § 8; 1953 ex.s.
c 8 § 16; 1945 c 35 § 92; Rem. Supp. 1945 § 9998-230. Prior:
1943 c 127 § 10; 1941 c 253 § 11.]
Conflict with federal requirements—Severability—Effective date—
1987 c 111: See notes following RCW 50.12.220.
Effective date—1973 1st ex.s. c 158: See note following RCW
50.08.020.
50.24.050
50.24.050 Lien for contributions generally. The claim
of the employment security department for any contributions,
interest, or penalties not paid when due, shall be a lien prior
to all other liens or claims and on a parity with prior tax liens
against all property and rights to property, whether real or
personal, belonging to the employer. In order to avail itself of
the lien hereby created, the department shall file with any
county auditor where property of the employer is located a
statement and claim of lien specifying the amount of delinquent contributions, interest, and penalties claimed by the
department. From the time of filing for record, the amount
required to be paid shall constitute a lien upon all property
and rights to property, whether real or personal, in the county,
owned by the employer or acquired by him. The lien shall not
be valid against any purchaser, holder of a security interest,
mechanic's lien, or judgment lien creditor until notice thereof
has been filed with the county auditor. This lien shall be separate and apart from, and in addition to, any other lien or
claim created by, or provided for in, this title. When any such
notice of lien has been so filed, the commissioner may release
the same by filing a certificate of release when it shall appear
that the amount of delinquent contributions, interest, and penalties have been paid, or when such assurance of payment
shall be made as the commissioner may deem to be adequate.
Fees for filing and releasing the lien provided herein may be
charged to the employer and may be collected from the
employer utilizing the remedies provided in this title for the
collection of contributions. [1981 c 302 § 39; 1979 ex.s. c
190 § 2; 1973 1st ex.s. c 158 § 9; 1947 c 215 § 19; 1945 c 35
§ 93; Rem. Supp. 1947 § 9998-231. Prior: 1943 c 127 § 10;
1941 c 253 § 11; 1939 c 214 § 12; 1937 c 162 § 14.]
50.24.060
50.24.060 Lien in event of insolvency or dissolution.
In the event of any distribution of an employer's assets pursuant to an order of any court, including any receivership, probate, legal dissolution, or similar proceeding, or in case of
any assignment for the benefit of creditors, composition, or
similar proceeding, contributions, interest, or penalties then
or thereafter due shall be a lien upon all the assets of such
employer. Said lien will be prior to all other liens or claims
except prior tax liens, other liens provided by this title, and
claims for remuneration for services of not more than two
hundred and fifty dollars to each claimant earned within six
months of the commencement of the proceeding. The mere
existence of a condition of insolvency or the institution of any
judicial proceeding for legal dissolution or of any proceeding
for distribution of assets shall cause such a lien to attach without action on behalf of the commissioner or the state. In the
event of an employer's adjudication in bankruptcy, judicially
confirmed extension proposal, or composition, under the federal bankruptcy act of 1898, as amended, contributions, interest, or penalties then or thereafter due shall be entitled to such
priority as provided in that act, as amended. [1983 1st ex.s. c
23 § 15; 1945 c 35 § 94; Rem. Supp. 1945 § 9998-232. Prior:
1943 c 127 § 10; 1941 c 253 § 11; 1939 c 214 § 12; 1937 c
162 § 14.]
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
50.24.070
50.24.070 Order and notice of assessment. At any
time after the commissioner shall find that any contributions,
interest, or penalties have become delinquent, the commissioner may issue an order and notice of assessment specifying the amount due, which order and notice of assessment
shall be served upon the delinquent employer in the manner
prescribed for the service of a summons in a civil action, or
by certified mail to the last known address of the employer as
shown by the records of the department. Failure of the
employer to receive such notice or order whether served or
mailed shall not release the employer from any tax, or any
interest or penalties thereon. [1987 c 111 § 4; 1979 ex.s. c
190 § 3; 1945 c 35 § 95; Rem. Supp. 1945 § 9998-233. Prior:
1943 c 127 § 10; 1941 c 253 § 11.]
Conflict with federal requirements—Severability—Effective date—
1987 c 111: See notes following RCW 50.12.220.
Commencement of actions: Chapter 4.28 RCW.
50.24.080
50.24.080 Jeopardy assessment. If the commissioner
shall have reason to believe that an employer is insolvent or
if any reason exists why the collection of any contributions
accrued will be jeopardized by delaying collection, he may
make an immediate assessment thereof and may proceed to
enforce collection immediately, but interest and penalties
shall not begin to accrue upon any contributions until the date
when such contributions would normally have become delinquent. [1979 ex.s. c 190 § 4; 1945 c 35 § 96; Rem. Supp.
1945 § 9998-234. Prior: 1943 c 127 § 10; 1941 c 253 § 11.]
50.24.090
Severability—1981 c 302: See note following RCW 19.76.100.
Effective date—1973 1st ex.s. c 158: See note following RCW
50.08.020.
Penalties for late reports or contributions: RCW 50.12.220.
[Title 50 RCW—page 52]
50.24.090 Distraint, seizure, and sale. If the amount of
contributions, interest, or penalties assessed by the commissioner by order and notice of assessment provided in this title
is not paid within ten days after the service or mailing of the
order and notice of assessment, the commissioner or his duly
(2004 Ed.)
Contributions by Employers
authorized representative may collect the amount stated in
said assessment by the distraint, seizure, and sale of the property, goods, chattels, and effects of said delinquent employer.
There shall be exempt from distraint and sale under this section such goods and property as are exempt from execution
under the laws of this state. [1979 ex.s. c 190 § 5; 1945 c 35
§ 97; Rem. Supp. 1945 § 9998-235. Prior: 1943 c 127 § 10;
1941 c 253 § 11.]
Executions: Chapter 6.17 RCW.
Personal exemptions, generally: Chapter 6.15 RCW.
50.24.100
50.24.100 Distraint procedure. The commissioner,
upon making a distraint, shall seize the property and shall
make an inventory of the property distrained, a copy of which
shall be mailed to the owner of such property or personally
delivered to him, and shall specify the time and place when
said property shall be sold. A notice specifying the property
to be sold and the time and place of sale shall be posted in at
least two public places in the county wherein the seizure has
been made. The time of sale shall be not less than ten nor
more than twenty days from the date of posting of such
notices. Said sale may be adjourned from time to time at the
discretion of the commissioner, but not for a time to exceed
in all sixty days. Said sale shall be conducted by the commissioner or his authorized representative who shall proceed to
sell such property by parcel or by lot at a public auction, and
who may set a minimum price to include the expenses of
making a levy and of advertising the sale, and if the amount
bid for such property at the sale is not equal to the minimum
price so fixed, the commissioner or his representative may
declare such property to be purchased by the employment
security department for such minimum price. In such event
the delinquent account shall be credited with the amount for
which the property has been sold. Property acquired by the
employment security department as herein prescribed may be
sold by the commissioner or his representative at public or
private sale, and the amount realized shall be placed in the
unemployment compensation trust fund.
In all cases of sale, as aforesaid, the commissioner shall
issue a bill of sale or a deed to the purchaser and said bill of
sale or deed shall be prima facie evidence of the right of the
commissioner to make such sale and conclusive evidence of
the regularity of his proceeding in making the sale, and shall
transfer to the purchaser all right, title, and interest of the
delinquent employer in said property. The proceeds of any
such sale, except in those cases wherein the property has been
acquired by the employment security department, shall be
first applied by the commissioner in satisfaction of the delinquent account, and out of any sum received in excess of the
amount of delinquent contributions, interest, and penalties
the administration fund shall be reimbursed for the costs of
distraint and sale. Any excess which shall thereafter remain
in the hands of the commissioner shall be refunded to the
delinquent employer. Sums so refundable to a delinquent
employer may be subject to seizure or distraint in the hands
of the commissioner by any other taxing authority of the state
or its political subdivisions. [1979 ex.s. c 190 § 6; 1949 c 214
§ 20; 1945 c 35 § 98; Rem. Supp. 1949 § 9998-236. Prior:
1943 c 127 § 10; 1941 c 253 § 11.]
(2004 Ed.)
50.24.115
50.24.110
50.24.110 Notice and order to withhold and deliver.
The commissioner is hereby authorized to issue to any person, firm, corporation, political subdivision, or department of
the state, a notice and order to withhold and deliver property
of any kind whatsoever when the commissioner has reason to
believe that there is in the possession of such person, firm,
corporation, political subdivision, or department, property
which is due, owing, or belonging to any person, firm, or corporation upon whom the department has served a benefit
overpayment assessment or a notice and order of assessment
for unemployment compensation contributions, interest, or
penalties. The effect of a notice to withhold and deliver shall
be continuous from the date such notice and order to withhold
and deliver is first made until the liability is satisfied or
becomes unenforceable because of a lapse of time.
The notice and order to withhold and deliver shall be
served by the sheriff or the sheriff's deputy of the county
wherein the service is made, by certified mail, return receipt
requested, or by any duly authorized representative of the
commissioner. Any person, firm, corporation, political subdivision, or department upon whom service has been made is
hereby required to answer the notice within twenty days
exclusive of the day of service, under oath and in writing, and
shall make true answers to the matters inquired of in the
notice.
In the event there is in the possession of any such person,
firm, corporation, political subdivision, or department, any
property which may be subject to the claim of the employment security department of the state, such property shall be
delivered forthwith to the commissioner or the commissioner's duly authorized representative upon demand to be
held in trust by the commissioner for application on the
indebtedness involved or for return, without interest, in
accordance with final determination of liability or nonliability, or in the alternative, there shall be furnished a good and
sufficient bond satisfactory to the commissioner conditioned
upon final determination of liability.
Should any person, firm, or corporation fail to make
answer to an order to withhold and deliver within the time
prescribed herein, it shall be lawful for the court, after the
time to answer such order has expired, to render judgment by
default against such person, firm, or corporation for the full
amount claimed by the commissioner in the notice to withhold and deliver, together with costs. [1990 c 245 § 6; 1987
c 111 § 5; 1979 ex.s. c 190 § 7; 1947 c 215 § 20; 1945 c 35 §
99; Rem. Supp. 1947 § 9998-237.]
Conflict with federal requirements—Effective dates—1990 c 245:
See notes following RCW 50.04.030.
Conflict with federal requirements—Severability—Effective date—
1987 c 111: See notes following RCW 50.12.220.
50.24.115
50.24.115 Warrant—Authorized—Filing—Lien—
Enforcement. Whenever any order and notice of assessment
or jeopardy assessment shall have become final in accordance with the provisions of this title the commissioner may
file with the clerk of any county within the state a warrant in
the amount of the notice of assessment plus interest, penalties, and a filing fee under RCW 36.18.012(10). The clerk of
the county wherein the warrant is filed shall immediately designate a superior court cause number for such warrant, and
the clerk shall cause to be entered in the judgment docket
[Title 50 RCW—page 53]
50.24.120
Title 50 RCW: Unemployment Compensation
under the superior court cause number assigned to the warrant, the name of the employer mentioned in the warrant, the
amount of the tax, interest, penalties, and filing fee and the
date when such warrant was filed. The aggregate amount of
such warrant as docketed shall become a lien upon the title to,
and interest in all real and personal property of the employer
against whom the warrant is issued, the same as a judgment
in a civil case duly docketed in the office of such clerk. Such
warrant so docketed shall be sufficient to support the issuance of writs of execution and writs of garnishment in favor
of the state in the manner provided by law in the case of civil
judgment, wholly or partially unsatisfied. The clerk of the
cou r t sh all b e en titl ed to a fi ling f ee un d er R CW
36.18.012(10), which shall be added to the amount of the
warrant, and charged by the commissioner to the employer or
employing unit. A copy of the warrant shall be mailed to the
employer or employing unit by certified mail to his last
known address within five days of filing with the clerk.
[2001 c 146 § 8; 1983 1st ex.s. c 23 § 16; 1979 ex.s. c 190 §
8; 1975 1st ex.s. c 228 § 15.]
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
Effective date—1975 1st ex.s. c 228: See note following RCW
50.04.355.
has accrued under the employment security law of any other
state or of the federal government. [1979 ex.s. c 190 § 9;
1959 c 266 § 5; 1953 ex.s. c 8 § 17; 1945 c 35 § 100; Rem.
Supp. 1945 § 9998-238. Prior: 1943 c 127 § 10.]
Civil procedure: Title 4 RCW.
Industrial insurance: Title 51 RCW.
50.24.125
50.24.125 Collection by civil action—Collection of
delinquent payments in lieu of contributions from political subdivisions or instrumentalities thereof. Delinquent
payments in lieu of contributions due the unemployment
compensation fund and interest and penalties may be recovered from any of the political subdivisions of this state or any
instrumentality of a political subdivision of this state by civil
action. The governor is authorized to deduct the amount of
delinquent payments in lieu of contributions and interest and
penalties from any moneys payable by the state to said political subdivisions or instrumentalities and pay such moneys to
the commissioner for deposit in the appropriate account.
[1979 ex.s. c 190 § 10; 1971 c 3 § 15.]
Construction—Compliance with federal act—1971 c 3: See RCW
50.44.080.
50.24.130
50.24.120
50.24.120 Collection by civil action. (1) If after due
notice, any employer defaults in any payment of contributions, interest, or penalties, the amount due may be collected
by civil action in the name of the state, and the employer
adjudged in default shall pay the cost of such action. Any lien
created by this title may be foreclosed by decree of the court
in any such action. Civil actions brought under this title to
collect contributions, interest, or penalties from an employer
shall be heard by the court at the earliest possible date and
shall be entitled to preference upon the calendar of the court
over all other civil actions except petitions for judicial review
under this title and cases arising under the industrial insurance laws of this state.
(2) Any employing unit which is not a resident of this
state and which exercises the privilege of having one or more
individuals perform service for it within this state, and any
resident employing unit which exercises that privilege and
thereafter removes from this state, shall be deemed thereby to
appoint the secretary of state as its agent and attorney for the
acceptance of process in any action under this title. In instituting such an action against any such employing unit the
commissioner shall cause such process or notice to be filed
with the secretary of state and such service shall be sufficient
service upon such employing unit, and shall be of the same
force and validity as if served upon it personally within this
state: PROVIDED, That the commissioner shall forthwith
send notice of the service of such process or notice, together
with a copy thereof, by registered mail, return receipt
requested, to such employing unit at its last known address
and such return receipt, the commissioner's affidavit of compliance with the provisions of this section, and a copy of the
notice of service shall be appended to the original of the process filed in the court in which such action is pending.
(3) The courts of this state shall in the manner provided
in subsections (1) and (2) of this section entertain actions to
collect contributions, interest, or penalties for which liability
[Title 50 RCW—page 54]
50.24.130 Contractor's and principal's liability for
contributions—Exceptions. No employing unit which contracts with or has under it any contractor or subcontractor
who is an employer under the provisions of this title shall
make any payment or advance to, or secure any credit for,
such contractor or subcontractor or on account of any contract or contracts to which said employing unit is a party
unless such contractor or subcontractor has paid contributions, due or to become due for wages paid or to be paid by
such contractor or subcontractor for personal services performed pursuant to such contract or subcontract, or has furnished a good and sufficient bond acceptable to the commissioner for payment of contributions, interest, and penalties.
Failure to comply with the provisions of this section shall
render said employing unit directly liable for such contributions, interest, and penalties and the commissioner shall have
all of the remedies of collection against said employing unit
under the provisions of this title as though the services in
question were performed directly for said employing unit.
For the purposes of this section, a contractor registered
under chapter 18.27 RCW or licensed under chapter 19.28
RCW shall not be responsible for any contributions for the
work of any subcontractor if:
(1) The subcontractor is currently engaging in a business
which is registered under chapter 18.27 RCW or licensed
under chapter 19.28 RCW;
(2) There is no other person, firm or corporation doing
the same work at the same time on the same project except
two or more persons, firms or corporations may contract and
do the same work at the same time on the same project if each
person, firm or corporation has employees;
(3) The subcontractor has a principal place of business
which would be eligible for a business deduction for internal
revenue service tax purposes other than that furnished by the
contractor for which the business has contracted to furnish
services;
(2004 Ed.)
Contributions by Employers
50.24.190
Effective date—1973 1st ex.s. c 158: See note following RCW
50.08.020.
any distinct class or group of individuals or by all individuals
in its employ in one or more distinct establishments or places
of business shall be deemed to constitute employment for all
the purposes of this title for not less than two calendar years.
Upon the written approval of such election by the commissioner, such services shall be deemed to constitute employment subject to this title from and after the date stated in such
approval. Services covered pursuant to this section shall
cease to be deemed employment subject hereto as of January
1st of any calendar year subsequent to such two calendar
years, only if the employing unit files with the commissioner
prior to the fifteenth day of January of such year a written
application for termination of coverage. [1977 ex.s. c 292 §
12; 1972 ex.s. c 35 § 1; 1971 c 3 § 14; 1959 c 266 § 6; 1951
c 265 § 8; 1951 c 215 § 9; 1945 c 35 § 104; Rem. Supp. 1945
§ 9998-242.]
Music or entertainment services purchasers, liability for unpaid contributions: RCW 50.04.148.
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
(4) The subcontractor maintains a separate set of books
or records that reflect all items of income and expenses of the
business; and
(5) The subcontractor has contracted to perform:
(a) The work of a contractor as defined in RCW
18.27.010; or
(b) The work of installing wires or equipment to convey
electric current or installing apparatus to be operated by such
current as it pertains to the electrical industry as described in
chapter 19.28 RCW. [1982 1st ex.s. c 18 § 15; 1979 ex.s. c
190 § 11; 1973 1st ex.s. c 158 § 10; 1949 c 214 § 21; 1945 c
35 § 101; Rem. Supp. 1949 § 9998-239.]
Severability—Conflict with federal requirements—1982 1st ex.s. c
18: See notes following RCW 50.12.200.
50.24.140
50.24.140 Collection remedies cumulative. Remedies
given to the state under this title for the collection of contributions, interest, or penalties shall be cumulative and no
action taken by the commissioner or his duly authorized representative, the attorney general, or any other officer shall be
construed to be an election on the part of the state or any of its
officers to pursue any remedy to the exclusion of any other.
[1979 ex.s. c 190 § 12; 1945 c 35 § 102; Rem. Supp. 1945 §
9998-240. Prior: 1943 c 127 § 10.]
50.24.150
50.24.150 Contribution adjustments and refunds.
No later than three years after the date on which any contributions, interest, or penalties have been paid, an employer
who has paid such contributions, interest, or penalties may
file with the commissioner a petition in writing for an adjustment thereof in connection with subsequent contribution payments or for a refund thereof when such adjustment cannot be
made. If the commissioner upon an ex parte consideration
shall determine that such contributions, interest, penalties, or
portion thereof were erroneously collected, he shall allow
such employer to make an adjustment thereof without interest
in connection with subsequent contribution payments by him,
or if such adjustment cannot be made, the commissioner shall
refund said amount without interest from the unemployment
compensation fund: PROVIDED, HOWEVER, That after
June 20, 1953, that refunds of interest on delinquent contributions or penalties shall be paid from the administrative contingency fund upon warrants issued by the treasurer under the
direction of the commissioner. For like cause and within the
same period, adjustment or refund may be made on the commissioner's own initiative. If the commissioner finds that
upon ex parte consideration he cannot readily determine that
such adjustment or refund should be allowed, he shall deny
such application and notify the employer in writing. [1979
ex.s. c 190 § 13; 1953 ex.s. c 8 § 19; 1945 c 35 § 103; Rem.
Supp. 1945 § 9998-241. Prior: 1943 c 127 § 10; 1941 c 253
§ 11.]
Construction—Compliance with federal act—1971 c 3: See RCW
50.44.080.
Severability—1951 c 265: See note following RCW 50.98.070.
Corporate officers, election of coverage: RCW 50.04.165.
50.24.170
50.24.170 Joint accounts. The commissioner shall prescribe regulations for the establishment, maintenance, and
dissolution of joint accounts by two or more employers, and
shall, in accordance with such regulations and upon application by two or more employers to establish such account, or
to merge their several individual accounts in a joint account,
maintain such joint account as if it constituted a single
employer's account. [1945 c 35 § 105; Rem. Supp. 1945 §
9998-243. Prior: 1941 c 253 § 5.]
50.24.180
50.24.180 Injunction proceedings. Any employer who
shall be delinquent in the payment of contributions, interest,
or penalties may be enjoined upon the suit of the state of
Washington from continuing in business in this state or
employing persons herein until the delinquent contributions,
interest, and penalties shall have been paid, or until the
employer shall have furnished a good and sufficient bond in
a sum equal to double the amount of contributions, interest,
and penalties already delinquent, plus such further sum as the
court shall deem adequate to protect the department in the
collection of contributions, interest, and penalties which will
become due from such employer during the next ensuing calendar year, said bond to be conditioned upon payment of all
contributions, interest, and penalties due and owing within
thirty days after the expiration of the next ensuing calendar
year or at such earlier date as the court may fix.
Action pursuant to the provisions of this section may be
instituted in the superior court of any county of the state
wherein the employer resides, has its principal place of business, or where it has anyone performing services for it,
whether or not such services constitute employment. [1979
ex.s. c 190 § 14; 1945 c 35 § 106; Rem. Supp. 1945 § 998244. Prior: 1943 c 127 § 10; 1941 c 253 § 11.]
50.24.160
50.24.160 Election of coverage. Any employing unit
for which services that do not constitute employment as
defined in this title are performed may file with the commissioner a written election that all such services performed by
(2004 Ed.)
50.24.190
50.24.190 Limitation of actions. The commissioner
shall commence action for the collection of contributions,
interest, penalties, and benefit overpayments imposed by this
[Title 50 RCW—page 55]
50.24.200
Title 50 RCW: Unemployment Compensation
title by assessment or suit within three years after a return is
filed or notice of benefit overpayment is served. No proceedings for the collection of such amounts shall be begun after
the expiration of such period.
In case of a false or fraudulent return with intent to evade
contributions, interest, or penalties, or in the event of a failure
to file a return, the contributions, interest, and penalties may
be assessed or a proceeding in court for the collection thereof
may be begun at any time. [1979 ex.s. c 190 § 15; 1955 c 286
§ 7. Prior: 1947 c 215 § 21, part; 1945 c 35 § 107, part; 1943
c 127 § 10, part; Rem. Supp. 1947 § 9998-245, part.]
50.24.200
50.24.200 Chargeoff of uncollectible accounts. The
commissioner may charge off as uncollectible and no longer
an asset of the unemployment compensation fund or the
administrative contingency fund, as the case may be, any
delinquent contributions, interest, penalties, credits, or benefit overpayments if the commissioner is satisfied that there
are no cost-effective means of collecting the contributions,
interest, penalties, credits, or benefit overpayments. [1989 c
78 § 1; 1979 ex.s. c 190 § 16; 1955 c 286 § 8. Prior: 1947 c
215 § 21, part; 1945 c 35 § 107, part; Rem. Supp. 1947 §
9998-245, part.]
50.24.210
50.24.210 Contributions due and payable upon termination or disposal of business—Successor liability.
Whenever any employer quits business, or sells out,
exchanges, or otherwise disposes of the employer's business
or stock of goods, any contributions payable under this title
shall become immediately due and payable, and the employer
shall, within ten days, make a return and pay the contributions due; and any person who becomes a successor to such
business shall become liable for the full amount of the contributions and withhold from the purchase price a sum sufficient to pay any contributions due from the employer until
such time as the employer produces a receipt from the
employment security department showing payment in full of
any contributions due or a certificate that no contribution is
due and, if such contribution is not paid by the employer
within ten days from the date of such sale, exchange, or disposal, the successor shall become liable for the payment of
the full amount of contributions, and the payment thereof by
such successor shall, to the extent thereof, be deemed a payment upon the purchase price, and if such payment is greater
in amount than the purchase price the amount of the difference shall become a debt due such successor from the
employer.
No successor may be liable for any contributions due
from the person from whom that person has acquired a business or stock of goods if that person gives written notice to
the employment security department of such acquisition and
no assessment is issued by the department within one hundred eighty days of receipt of such notice against the former
operator of the business and a copy thereof mailed to such
successor. [1991 c 117 § 4.]
Conflict with federal requirements—Severability—Effective
dates—1991 c 117: See notes following RCW 50.04.030.
[Title 50 RCW—page 56]
Chapter 50.29
Chapter 50.29 RCW
EMPLOYER EXPERIENCE RATING
Sections
50.29.010
50.29.020
50.29.021
50.29.025
50.29.026
50.29.027
50.29.030
50.29.041
50.29.062
50.29.065
50.29.070
50.29.080
Definitions.
Experience rating accounts—Benefits not charged—Claims
with an effective date before January 4, 2004.
Experience rating accounts—Benefits not charged—Claims
with an effective date on or after January 4, 2004.
Contribution rate.
Modification of contribution rate.
Benefit ratio computed for 1985 and thereafter.
"Wages" defined for purpose of prorating benefit charges.
Contribution rate—Solvency surcharge.
Contribution rates for predecessor and successor employers.
Notice of benefits paid and charged to employer's account.
Notice of employer benefit charges and rate of contribution—
Review and appeal.
Redetermination and correction of employer's contribution
rate.
50.29.010
50.29.010 Definitions. As used in this chapter:
(1) "Computation date" means July 1st of any year;
(2) "Cut-off date" means September 30th next following
the computation date;
(3) "Qualification date" means April 1st of the second
year preceding the computation date;
(4) "Rate year" means the calendar year immediately following the computation date;
(5) "Payroll" means all wages (as defined for contribution purposes) paid by an employer to individuals in his or
her employment;
(6) "Qualified employer" means any employer who (a)
reported some employment in the twelve-month period
beginning with the qualification date, (b) had no period of
four or more consecutive calendar quarters for which he or
she reported no employment in the two calendar years immediately preceding the computation date, and (c) has submitted
by the cut-off date all reports, contributions, interest, and
penalties required under this title for the period preceding the
computation date. Unpaid contributions, interest, and penalties may be disregarded for the purposes of this section if they
constitute less than either one hundred dollars or one-half of
one percent of the employer's total tax reported for the
twelve-month period immediately preceding the computation
date. Late reports, contributions, penalties, or interest from
employment defined under RCW 50.04.160 may be disregarded for the purposes of this section if showing is made to
the satisfaction of the commissioner that an otherwise qualified employer acted in good faith and that forfeiture of qualification for a reduced contribution rate because of such delinquency would be inequitable. [2002 c 149 § 11; 1987 c 213
§ 2; 1986 c 111 § 1; 1984 c 205 § 3; 1983 1st ex.s. c 23 § 17;
1973 1st ex.s. c 158 § 11; 1971 c 3 § 16; 1970 ex.s. c 2 § 10.]
Conflict with federal requirements—Severability—2002 c 149: See
notes following RCW 50.22.140.
Construction—1987 c 213: "This act shall not be construed as affecting any existing right acquired or liability or obligation incurred under the
sections amended or repealed in this act, or under any rule, regulation, or
order adopted under those sections, nor as affecting any proceeding instituted thereunder." [1987 c 213 § 4.]
Conflict with federal requirements—1986 c 111: "If any part of this
act is found to be in conflict with federal requirements which are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
(2004 Ed.)
Employer Experience Rating
the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1986 c 111 § 2.]
Severability—1986 c 111: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1986 c 111 § 4.]
Conflict with federal requirements—Severability—Effective
dates—1984 c 205: See notes following RCW 50.20.120.
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
Effective date—1973 1st ex.s. c 158: See note following RCW
50.08.020.
Construction—Compliance with federal act—1971 c 3: See RCW
50.44.080.
Effective date—1970 ex.s. c 2: See note following RCW 50.04.020.
Wages defined for contribution purposes: RCW 50.04.320.
50.29.020
50.29.020 Experience rating accounts—Benefits not
charged—Claims with an effective date before January 4,
2004. (1) This section applies to benefits charged to the
experience rating accounts of employers for claims that have
an effective date before January 4, 2004.
(2) An experience rating account shall be established and
maintained for each employer, except employers as described
in RCW 50.44.010 and 50.44.030 who have properly elected
to make payments in lieu of contributions, taxable local government employers as described in RCW 50.44.035, and
those employers who are required to make payments in lieu
of contributions, based on existing records of the employment security department. Benefits paid to any eligible individuals shall be charged to the experience rating accounts of
each of such individual's employers during the individual's
base year in the same ratio that the wages paid by each
employer to the individual during the base year bear to the
wages paid by all employers to that individual during that
base year, except as otherwise provided in this section.
(3) The legislature finds that certain benefit payments, in
whole or in part, should not be charged to the experience rating accounts of employers except those employers described
in RCW 50.44.010 and 50.44.030 who have properly elected
to make payments in lieu of contributions, taxable local government employers described in RCW 50.44.035, and those
employers who are required to make payments in lieu of contributions, as follows:
(a) Benefits paid to any individuals later determined to
be ineligible shall not be charged to the experience rating
account of any contribution paying employer.
(b) Benefits paid to an individual filing under the provisions of chapter 50.06 RCW shall not be charged to the experience rating account of any contribution paying employer
only if:
(i) The individual files under RCW 50.06.020(1) after
receiving crime victims' compensation for a disability resulting from a nonwork-related occurrence; or
(ii) The individual files under RCW 50.06.020(2).
(c) Benefits paid which represent the state's share of benefits payable as extended benefits defined under RCW
50.22.010(6) shall not be charged to the experience rating
account of any contribution paying employer.
(2004 Ed.)
50.29.020
(d) In the case of individuals who requalify for benefits
under RCW 50.20.050 or 50.20.060, benefits based on wage
credits earned prior to the disqualifying separation shall not
be charged to the experience rating account of the contribution paying employer from whom that separation took place.
(e) Individuals who qualify for benefits under RCW
50.20.050(1)(b)(iv) shall not have their benefits charged to
the experience rating account of any contribution paying
employer.
(f) In the case of individuals identified under *RCW
50.20.015, benefits paid with respect to a calendar quarter,
which exceed the total amount of wages earned in the state of
Washington in the higher of two corresponding calendar
quarters included within the individual's determination
period, as defined in *RCW 50.20.015, shall not be charged
to the experience rating account of any contribution paying
employer.
(4)(a) A contribution-paying base year employer, not
otherwise eligible for relief of charges for benefits under this
section, may receive such relief if the benefit charges result
from payment to an individual who:
(i) Last left the employ of such employer voluntarily for
reasons not attributable to the employer;
(ii) Was discharged for misconduct connected with his or
her work not a result of inability to meet the minimum job
requirements;
(iii) Is unemployed as a result of closure or severe curtailment of operation at the employer's plant, building, worksite, or other facility. This closure must be for reasons
directly attributable to a catastrophic occurrence such as fire,
flood, or other natural disaster; or
(iv) Continues to be employed on a regularly scheduled
permanent part-time basis by a base year employer and who
at some time during the base year was concurrently employed
and subsequently separated from at least one other base year
employer. Benefit charge relief ceases when the employment
relationship between the employer requesting relief and the
claimant is terminated. This subsection does not apply to
shared work employers under chapter 50.60 RCW.
(b) The employer requesting relief of charges under this
subsection must request relief in writing within thirty days
following mailing to the last known address of the notification of the valid initial determination of such claim, stating
the date and reason for the separation or the circumstances of
continued employment. The commissioner, upon investigation of the request, shall determine whether relief should be
granted. [2004 c 110 § 3; 2003 2nd sp.s. c 4 § 20. Prior:
2002 c 149 § 6; 2002 c 8 § 4; 2000 c 2 § 3; 1995 c 57 § 3;
1993 c 483 § 19; 1991 c 129 § 1; 1988 c 27 § 1; prior: 1987
c 213 § 3; 1987 c 2 § 2; prior: 1985 c 299 § 1; 1985 c 270 §
2; 1985 c 42 § 1; 1984 c 205 § 7; 1975 1st ex.s. c 228 § 6;
1970 ex.s. c 2 § 11.]
*Reviser's note: RCW 50.20.015 was repealed by 2003 2nd sp.s. c 4 §
35.
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Conflict with federal requirements—Severability—2002 c 149: See
notes following RCW 50.22.140.
Conflict with federal requirements—Severability—Effective date—
2000 c 2: See notes following RCW 50.04.355.
[Title 50 RCW—page 57]
50.29.021
Title 50 RCW: Unemployment Compensation
Application—1995 c 57: "This act applies only to benefit charges
attributable to new claims effective after July 1, 1995." [1995 c 57 § 4.]
Effective date—1995 c 57: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[April 17, 1995]." [1995 c 57 § 5.]
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
Conflict with federal requirements—1988 c 27: "If any part of this
act is found to be in conflict with federal requirements which are a prescribed
condition to the allocation of federal funds to the state, the conflicting part of
this act is hereby declared to be inoperative solely to the extent of the conflict, and such finding or determination shall not affect the operation of the
remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the
state." [1988 c 27 § 2.]
Construction—1987 c 213: See note following RCW 50.29.010.
Applicability—Effective date—Severability—1987 c 2: See notes
following RCW 50.20.090.
Conflict with federal requirements—1985 c 42: "If any part of this
act is found to be in conflict with federal requirements which are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1985 c 42 § 2.]
Severability—1985 c 42: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1985 c 42 § 3.]
Conflict with federal requirements—Severability—Effective
dates—1984 c 205: See notes following RCW 50.20.120.
Effective date—1975 1st ex.s. c 228: See note following RCW
50.04.355.
Effective date—1970 ex.s. c 2: See note following RCW 50.04.020.
50.29.021
50.29.021 Experience rating accounts—Benefits not
charged—Claims with an effective date on or after January 4, 2004. (1) This section applies to benefits charged to
the experience rating accounts of employers for claims that
have an effective date on or after January 4, 2004.
(2)(a) An experience rating account shall be established
and maintained for each employer, except employers as
described in RCW 50.44.010 and 50.44.030 who have properly elected to make payments in lieu of contributions, taxable local government employers as described in RCW
50.44.035, and those employers who are required to make
payments in lieu of contributions, based on existing records
of the employment security department.
(b) Benefits paid to an eligible individual shall be
charged to the experience rating accounts of each of such
individual's employers during the individual's base year in the
same ratio that the wages paid by each employer to the individual during the base year bear to the wages paid by all
employers to that individual during that base year, except as
otherwise provided in this section.
(c) When the eligible individual's separating employer is
a covered contribution paying base year employer, benefits
paid to the eligible individual shall be charged to the experience rating account of only the individual's separating
employer if the individual qualifies for benefits under:
[Title 50 RCW—page 58]
(i) RCW 50.20.050(2)(b)(i), as applicable, and became
unemployed after having worked and earned wages in the
bona fide work; or
(ii) RCW 50.20.050(2)(b)(v) through (x).
(3) The legislature finds that certain benefit payments, in
whole or in part, should not be charged to the experience rating accounts of employers except those employers described
in RCW 50.44.010 and 50.44.030 who have properly elected
to make payments in lieu of contributions, taxable local government employers described in RCW 50.44.035, and those
employers who are required to make payments in lieu of contributions, as follows:
(a) Benefits paid to any individual later determined to be
ineligible shall not be charged to the experience rating
account of any contribution paying employer.
(b) Benefits paid to an individual filing under the provisions of chapter 50.06 RCW shall not be charged to the experience rating account of any contribution paying employer
only if:
(i) The individual files under RCW 50.06.020(1) after
receiving crime victims' compensation for a disability resulting from a nonwork-related occurrence; or
(ii) The individual files under RCW 50.06.020(2).
(c) Benefits paid which represent the state's share of benefits payable as extended benefits defined under RCW
50.22.010(6) shall not be charged to the experience rating
account of any contribution paying employer.
(d) In the case of individuals who requalify for benefits
under RCW 50.20.050 or 50.20.060, benefits based on wage
credits earned prior to the disqualifying separation shall not
be charged to the experience rating account of the contribution paying employer from whom that separation took place.
(e) Individuals who qualify for benefits under RCW
50.20.050(2)(b)(iv), as applicable, shall not have their benefits charged to the experience rating account of any contribution paying employer.
(4)(a) A contribution paying base year employer, not
otherwise eligible for relief of charges for benefits under this
section, may receive such relief if the benefit charges result
from payment to an individual who:
(i) Last left the employ of such employer voluntarily for
reasons not attributable to the employer;
(ii) Was discharged for misconduct or gross misconduct
connected with his or her work not a result of inability to
meet the minimum job requirements;
(iii) Is unemployed as a result of closure or severe curtailment of operation at the employer's plant, building, worksite, or other facility. This closure must be for reasons
directly attributable to a catastrophic occurrence such as fire,
flood, or other natural disaster; or
(iv) Continues to be employed on a regularly scheduled
permanent part-time basis by a base year employer and who
at some time during the base year was concurrently employed
and subsequently separated from at least one other base year
employer. Benefit charge relief ceases when the employment
relationship between the employer requesting relief and the
claimant is terminated. This subsection does not apply to
shared work employers under chapter 50.60 RCW.
(b) The employer requesting relief of charges under this
subsection must request relief in writing within thirty days
following mailing to the last known address of the notifica(2004 Ed.)
Employer Experience Rating
tion of the valid initial determination of such claim, stating
the date and reason for the separation or the circumstances of
continued employment. The commissioner, upon investigation of the request, shall determine whether relief should be
granted. [2003 2nd sp.s. c 4 § 21.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
ified in the following tables for the rate class to which he or
she has been assigned, as determined under (d) of this subsection, within the tax schedule which is to be in effect during
the rate year:
Percent of
Cumulative
Taxable Payrolls
50.29.025
50.29.025 Contribution rate. (1) Except as provided in
subsection (2) of this section, the contribution rate for each
employer subject to contributions under RCW 50.24.010
shall be determined under this subsection.
(a) A fund balance ratio shall be determined by dividing
the balance in the unemployment compensation fund as of
the September 30th immediately preceding the rate year by
the total remuneration paid by all employers subject to contributions during the second calendar year preceding the rate
year and reported to the department by the following March
31st. The division shall be carried to the fourth decimal place
with the remaining fraction, if any, disregarded. The fund
balance ratio shall be expressed as a percentage.
(b) The interval of the fund balance ratio, expressed as a
percentage, shall determine which tax schedule in (e) of this
subsection shall be in effect for assigning tax rates for the rate
year. The intervals for determining the effective tax schedule
shall be:
Interval of the
Fund Balance Ratio
Expressed as a Percentage
2.90 and above
2.10 to 2.89
1.70 to 2.09
1.40 to 1.69
1.00 to 1.39
0.70 to 0.99
Less than 0.70
Effective
Tax Schedule
AA
A
B
C
D
E
F
(c) An array shall be prepared, listing all qualified
employers in ascending order of their benefit ratios. The
array shall show for each qualified employer: (i) Identification number; (ii) benefit ratio; (iii) taxable payrolls for the
four calendar quarters immediately preceding the computation date and reported to the department by the cut-off date;
(iv) a cumulative total of taxable payrolls consisting of the
employer's taxable payroll plus the taxable payrolls of all
other employers preceding him or her in the array; and (v) the
percentage equivalent of the cumulative total of taxable payrolls.
(d) Each employer in the array shall be assigned to one of
twenty rate classes according to the percentage intervals of
cumulative taxable payrolls set forth in (e) of this subsection:
PROVIDED, That if an employer's taxable payroll falls
within two or more rate classes, the employer and any other
employer with the same benefit ratio shall be assigned to the
lowest rate class which includes any portion of the
employer's taxable payroll.
(e) Except as provided in RCW 50.29.026, the contribution rate for each employer in the array shall be the rate spec(2004 Ed.)
50.29.025
From
Schedules of Contributions Rates
for Effective Tax Schedule
Rate
To Class
0.00
5.00
5.01 10.00
10.01 15.00
15.01 20.00
20.01 25.00
25.01 30.00
30.01 35.00
35.01 40.00
40.01 45.00
45.01 50.00
50.01 55.00
55.01 60.00
60.01 65.00
65.01 70.00
70.01 75.00
75.01 80.00
80.01 85.00
85.01 90.00
90.01 95.00
95.01 100.00
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
AA
A
B
C
D
E
F
0.47
0.47
0.57
0.57
0.72
0.91
1.00
1.19
1.37
1.56
1.84
2.03
2.22
2.40
2.68
2.87
3.27
3.67
4.07
5.40
0.47
0.47
0.57
0.73
0.92
1.11
1.29
1.48
1.67
1.86
2.14
2.33
2.52
2.71
2.90
3.09
3.47
3.87
4.27
5.40
0.57
0.77
0.97
1.11
1.30
1.49
1.69
1.88
2.07
2.26
2.45
2.64
2.83
3.02
3.21
3.42
3.77
4.17
4.57
5.40
0.97
1.17
1.37
1.51
1.70
1.89
2.08
2.27
2.47
2.66
2.85
3.04
3.23
3.43
3.62
3.81
4.17
4.57
4.97
5.40
1.47
1.67
1.77
1.90
2.09
2.29
2.48
2.67
2.87
3.06
3.25
3.44
3.64
3.83
4.02
4.22
4.57
4.87
5.07
5.40
1.87
2.07
2.27
2.40
2.59
2.69
2.88
3.07
3.27
3.46
3.66
3.85
4.04
4.24
4.43
4.53
4.87
4.97
5.17
5.40
2.47
2.67
2.87
2.98
3.08
3.18
3.27
3.47
3.66
3.86
3.95
4.15
4.34
4.54
4.63
4.73
4.97
5.17
5.37
5.40
(f) The contribution rate for each employer not qualified
to be in the array shall be as follows:
(i) Employers who do not meet the definition of "qualified employer" by reason of failure to pay contributions when
due shall be assigned a contribution rate two-tenths higher
than that in rate class 20 for the applicable rate year, except
employers who have an approved agency-deferred payment
contract by September 30 of the previous rate year. If any
employer with an approved agency-deferred payment contract fails to make any one of the succeeding deferred payments or fails to submit any succeeding tax report and payment in a timely manner, the employer's tax rate shall immediately revert to a contribution rate two-tenths higher than
that in rate class 20 for the applicable rate year; and
(ii) For all other employers not qualified to be in the
array, the contribution rate shall be a rate equal to the average
industry rate as determined by the commissioner; however,
the rate may not be less than one percent.
(2) Beginning with contributions assessed for rate year
2005, the contribution rate for each employer subject to contributions under RCW 50.24.010 shall be the sum of the array
calculation factor rate and the graduated social cost factor
rate determined under this subsection, and the solvency surcharge determined under RCW 50.29.041, if any.
(a) The array calculation factor rate shall be determined
as follows:
(i) An array shall be prepared, listing all qualified
employers in ascending order of their benefit ratios. The
array shall show for each qualified employer: (A) Identifica[Title 50 RCW—page 59]
50.29.025
Title 50 RCW: Unemployment Compensation
tion number; (B) benefit ratio; and (C) taxable payrolls for
the four consecutive calendar quarters immediately preceding the computation date and reported to the employment
security department by the cut-off date.
(ii) Each employer in the array shall be assigned to one
of forty rate classes according to his or her benefit ratio as follows, and, except as provided in RCW 50.29.026, the array
calculation factor rate for each employer in the array shall be
the rate specified in the rate class to which the employer has
been assigned:
Benefit Ratio
Less than
0.000001
0.000001
0.001250
0.001250
0.002500
0.002500
0.003750
0.003750
0.005000
0.005000
0.006250
0.006250
0.007500
0.007500
0.008750
0.008750
0.010000
0.010000
0.011250
0.011250
0.012500
0.012500
0.013750
0.013750
0.015000
0.015000
0.016250
0.016250
0.017500
0.017500
0.018750
0.018750
0.020000
0.020000
0.021250
0.021250
0.022500
0.022500
0.023750
0.023750
0.025000
0.025000
0.026250
0.026250
0.027500
0.027500
0.028750
0.028750
0.030000
0.030000
0.031250
0.031250
0.032500
0.032500
0.033750
0.033750
0.035000
0.035000
0.036250
0.036250
0.037500
0.037500
0.040000
0.040000
0.042500
0.042500
0.045000
0.045000
0.047500
0.047500
0.050000
0.050000
0.052500
At least
[Title 50 RCW—page 60]
Rate
Class
Rate
(percent)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
0.00
0.13
0.25
0.38
0.50
0.63
0.75
0.88
1.00
1.15
1.30
1.45
1.60
1.75
1.90
2.05
2.20
2.35
2.50
2.65
2.80
2.95
3.10
3.25
3.40
3.55
3.70
3.85
4.00
4.15
4.30
4.45
4.60
4.75
4.90
5.05
5.20
0.052500
0.055000
0.057500
0.055000
0.057500
38
39
40
5.30
5.35
5.40
(b) The graduated social cost factor rate shall be determined as follows:
(i)(A) Except as provided in (b)(i)(B) and (C) of this subsection, the commissioner shall calculate the flat social cost
factor for a rate year by dividing the total social cost by the
total taxable payroll. The division shall be carried to the second decimal place with the remaining fraction disregarded
unless it amounts to five hundredths or more, in which case
the second decimal place shall be rounded to the next higher
digit. The flat social cost factor shall be expressed as a percentage.
(B) If, on the cut-off date, the balance in the unemployment compensation fund is determined by the commissioner
to be an amount that will provide more than ten months of
unemployment benefits, the commissioner shall calculate the
flat social cost factor for the rate year immediately following
the cut-off date by reducing the total social cost by the dollar
amount that represents the number of months for which the
balance in the unemployment compensation fund on the cutoff date will provide benefits above ten months and dividing
the result by the total taxable payroll. However, the calculation under this subsection (2)(b)(i)(B) for a rate year may not
result in a flat social cost factor that is more than two-tenths
lower than the calculation under (b)(i)(A) of this subsection
for that rate year. For the purposes of this subsection, the
commissioner shall determine the number of months of
unemployment benefits in the unemployment compensation
fund using the benefit cost rate for the average of the three
highest calendar benefit cost rates in the twenty consecutive
completed calendar years immediately preceding the cut-off
date or a period of consecutive calendar years immediately
preceding the cut-off date that includes three recessions, if
longer.
(C) The minimum flat social cost factor calculated under
this subsection (2)(b) shall be six-tenths of one percent.
(ii) The graduated social cost factor rate for each
employer in the array is the flat social cost factor multiplied
by the percentage specified as follows for the rate class to
which the employer has been assigned in (a)(ii) of this subsection, except that the sum of an employer's array calculation factor rate and the graduated social cost factor rate may
not exceed six and five-tenths percent or, for employers
whose standard industrial classification code is within major
group "01," "02," "07," "091," "203," "209," or "5148," or the
equivalent code in the North American industry classification
system code, may not exceed six percent:
(A) Rate class 1 - 78 percent;
(B) Rate class 2 - 82 percent;
(C) Rate class 3 - 86 percent;
(D) Rate class 4 - 90 percent;
(E) Rate class 5 - 94 percent;
(F) Rate class 6 - 98 percent;
(G) Rate class 7 - 102 percent;
(H) Rate class 8 - 106 percent;
(I) Rate class 9 - 110 percent;
(J) Rate class 10 - 114 percent;
(2004 Ed.)
Employer Experience Rating
(K) Rate class 11 - 118 percent; and
(L) Rate classes 12 through 40 - 120 percent.
(iii) For the purposes of this section:
(A) "Total social cost" means the amount calculated by
subtracting the array calculation factor contributions paid by
all employers with respect to the four consecutive calendar
quarters immediately preceding the computation date and
paid to the employment security department by the cut-off
date from the total unemployment benefits paid to claimants
in the same four consecutive calendar quarters. To calculate
the flat social cost factor for rate year 2005, the commissioner
shall calculate the total social cost using the array calculation
factor contributions that would have been required to be paid
by all employers in the calculation period if (a) of this subsection had been in effect for the relevant period.
(B) "Total taxable payroll" means the total amount of
wages subject to tax, as determined under RCW 50.24.010,
for all employers in the four consecutive calendar quarters
immediately preceding the computation date and reported to
the employment security department by the cut-off date.
(c) The array calculation factor rate for each employer
not qualified to be in the array shall be as follows:
(i) Employers who do not meet the definition of "qualified employer" by reason of failure to pay contributions when
due shall be assigned an array calculation factor rate twotenths higher than that in rate class 40, except employers who
have an approved agency-deferred payment contract by September 30th of the previous rate year. If any employer with
an approved agency-deferred payment contract fails to make
any one of the succeeding deferred payments or fails to submit any succeeding tax report and payment in a timely manner, the employer's tax rate shall immediately revert to an
array calculation factor rate two-tenths higher than that in rate
class 40; and
(ii) For all other employers not qualified to be in the
array, the array calculation factor rate shall be a rate equal to
the average industry array calculation factor rate as determined by the commissioner, plus fifteen percent of that
amount; however, the rate may not be less than one percent or
more than the array calculation factor rate in rate class 40.
(d) The graduated social cost factor rate for each
employer not qualified to be in the array shall be as follows:
(i) For employers whose array calculation factor rate is
determined under (c)(i) of this subsection, the social cost factor rate shall be the social cost factor rate assigned to rate
class 40 under (b)(ii) of this subsection.
(ii) For employers whose array calculation factor rate is
determined under (c)(ii) of this subsection, the social cost
factor rate shall be a rate equal to the average industry social
cost factor rate as determined by the commissioner, plus fifteen percent of that amount, but not more than the social cost
factor rate assigned to rate class 40 under (b)(ii) of this subsection.
(3) Assignment of employers by the commissioner to
industrial classification, for purposes of this section, shall be
in accordance with established classification practices found
in the "Standard Industrial Classification Manual" issued by
the federal office of management and budget to the third digit
provided in the standard industrial classification code, or in
the North American industry classification system code.
[2003 2nd sp.s. c 4 § 14; 2003 c 4 § 1; 2000 c 2 § 4; 1995 c 4
(2004 Ed.)
50.29.026
§ 2; (1995 c 4 § 1 expired January 1, 1998). Prior: 1993 c
483 § 21; 1993 c 226 § 14; 1993 c 226 § 13; 1990 c 245 § 7;
1989 c 380 § 79; 1987 c 171 § 3; 1985 ex.s. c 5 § 7; 1984 c
205 § 5.]
Reviser's note: (1) Referendum Measure No. 53 was rejected by the
voters at the November 2002 election. This section has been returned to the
status existing before its amendment by 2002 c 149.
(2) The 2002 c 149 § 18 expiration date no longer applies to this section.
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Application—2003 c 4 § 1: "Section 1 of this act applies to rate years
beginning on or after January 1, 2003." [2003 c 4 § 2.]
Effective date—2003 c 4: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[March 12, 2003]." [2003 c 4 § 3.]
Application—2000 c 2 §§ 1, 2, 4, 5, 8, and 12-15: See note following
RCW 50.22.150.
Conflict with federal requirements—Severability—Effective date—
2000 c 2: See notes following RCW 50.04.355.
Effective dates—1995 c 4: "(1) Section 1 of this act is necessary for the
immediate preservation of the public peace, health, or safety, or support of
the state government and its existing public institutions, and shall take effect
immediately [March 16, 1995].
(2) Section 2 of this act shall take effect January 1, 1998." [1995 c 4 §
4.]
Expiration date—1995 c 4 § 1: "Section 1 of this act shall expire January 1, 1998." [1995 c 4 § 5.]
Effective dates, applicability—Conflict with federal requirements—Severability—1993 c 483: See notes following RCW 50.04.293.
Elevation of employer contribution rates—Report by commissioner—1993 c 226: "Prior to any increase in the employer tax schedule as
provided in section 13, chapter 226, Laws of 1993, the commissioner shall
provide a report to the appropriate committees of the legislature specifying
to what extent the work force training expenditures in chapter 226, Laws of
1993 elevated employer contribution rates for the effective tax schedule."
[1993 c 226 § 16.]
Effective dates—1993 c 226 §§ 10, 12, and 14: See note following
RCW 50.16.010.
Conflict with federal requirements—Severability—Application—
1993 c 226: See notes following RCW 50.16.010.
Conflict with federal requirements—Effective dates—1990 c 245:
See notes following RCW 50.04.030.
Effective date—1989 c 380 §§ 78-81: See note following RCW
50.04.150.
Conflict with federal requirements—1989 c 380: See note following
RCW 50.04.150.
Severability—1989 c 380: See RCW 15.58.942.
Conflict with federal requirements—Severability—1987 c 171: See
notes following RCW 50.62.010.
Conflict with federal requirements—Severability—1985 ex.s. c 5:
See notes following RCW 50.62.010.
Conflict with federal requirements—Severability—Effective
dates—1984 c 205: See notes following RCW 50.20.120.
50.29.026 Modification of contribution rate. (1)
Beginning with contributions assessed for rate year 1996, a
qualified employer's contribution rate applicable for rate
years beginning before January 1, 2005, or array calculation
factor rate applicable for rate years beginning on or after January 1, 2005, determined under RCW 50.29.025 may be
modified as follows:
(a) Subject to the limitations of this subsection, an
employer may make a voluntary contribution of an amount
equal to part or all of the benefits charged to the employer's
50.29.026
[Title 50 RCW—page 61]
50.29.027
Title 50 RCW: Unemployment Compensation
account during the two years most recently ended on June
30th that were used for the purpose of computing the
employer's contribution rate applicable for rate years beginning before January 1, 2005, or array calculation factor rate
applicable for rate years beginning on or after January 1,
2005. On receiving timely payment of a voluntary contribution, plus a surcharge of ten percent of the amount of the voluntary contribution, the commissioner shall cancel the benefits equal to the amount of the voluntary contribution, excluding the surcharge, and compute a new benefit ratio for the
employer. The employer shall then be assigned the contribution rate applicable for rate years beginning before January 1,
2005, or array calculation factor rate applicable for rate years
beginning on or after January 1, 2005, applicable to the rate
class within which the recomputed benefit ratio is included.
The minimum amount of a voluntary contribution, excluding
the surcharge, must be an amount that will result in a recomputed benefit ratio that is in a rate class at least four rate
classes lower than the rate class that included the employer's
original benefit ratio.
(b) Payment of a voluntary contribution is considered
timely if received by the department during the period beginning on the date of mailing to the employer the notice of contribution rate applicable for rate years beginning before January 1, 2005, or notice of array calculation factor rate applicable for rate years beginning on or after January 1, 2005,
required under this title for the rate year for which the
employer is seeking a modification of his or her rate and ending on February 15th of that rate year or, for voluntary contributions for rate year 2000, ending on March 31, 2000.
(c) A benefit ratio may not be recomputed nor a rate be
reduced under this section as a result of a voluntary contribution received after the payment period prescribed in (b) of
this subsection.
(2) This section does not apply to any employer who has
not had an increase of at least twelve rate classes from the
previous tax rate year. [2003 2nd sp.s. c 4 § 17; 2000 c 2 § 5;
1995 c 322 § 1.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Application—2000 c 2 §§ 1, 2, 4, 5, 8, and 12-15: See note following
RCW 50.22.150.
dates. The division shall be carried to the sixth decimal place
with the remaining fraction, if any, disregarded. [1984 c 205
§ 4.]
Conflict with federal requirements—Severability—Effective
dates—1984 c 205: See notes following RCW 50.20.120.
50.29.030
50.29.030 "Wages" defined for purpose of prorating
benefit charges. For the purpose of prorating benefit
charges "wages" shall mean "wages" as defined for purpose
of payment of benefits in RCW 50.04.320. [1970 ex.s. c 2 §
12.]
Effective date—1970 ex.s. c 2: See note following RCW 50.04.020.
Government or retirement pension plan payments as remuneration or
wages—Recovery of excess over benefits allowable, limitations: RCW
50.04.323.
50.29.041
50.29.041 Contribution rate—Solvency surcharge.
Beginning with contributions assessed for rate year 2005, the
contribution rate of each employer subject to contributions
under RCW 50.24.010 shall include a solvency surcharge
determined as follows:
(1) This section shall apply to employers' contributions
for a rate year immediately following a cut-off date only if,
on the cut-off date, the balance in the unemployment compensation fund is determined by the commissioner to be an
amount that will provide fewer than six months of unemployment benefits.
(2) The solvency surcharge shall be the lowest rate necessary, as determined by the commissioner, but not more than
two-tenths of one percent, to provide revenue during the
applicable rate year that will fund unemployment benefits for
the number of months that is the difference between eight
months and the number of months for which the balance in
the unemployment compensation fund on the cut-off date
will provide benefits.
(3) The basis for determining the number of months of
unemployment benefits shall be the same basis used in RCW
50.29.025(2)(b)(i)(B). [2003 2nd sp.s. c 4 § 16.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
50.29.062
Conflict with federal requirements—Severability—Effective date—
2000 c 2: See notes following RCW 50.04.355.
Conflict with federal requirements—1995 c 322: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1995 c 322 § 2.]
50.29.027
50.29.027 Benefit ratio computed for 1985 and thereafter. For the rate year 1985 and each rate year thereafter, a
benefit ratio shall be computed for each qualified employer
by dividing the total amount of benefits charged to the
account of the employer during the forty-eight consecutive
months immediately preceding the computation date by the
taxable payrolls of the employer for the same forty-eight
month period as reported to the department by the cut-off
[Title 50 RCW—page 62]
50.29.062 Contribution rates for predecessor and
successor employers. Predecessor and successor employer
contribution rates shall be computed in the following manner:
(1) If the successor is an employer, as defined in RCW
50.04.080, at the time of the transfer, its contribution rate
shall remain unchanged for the remainder of the rate year in
which the transfer occurs. From and after January 1 following the transfer, the successor's contribution rate for each rate
year shall be based on its experience with payrolls and benefits including the experience of the acquired business or portion of a business from the date of transfer, as of the regular
computation date for that rate year.
(2) For transfers before January 1, 2005, the following
applies if the successor is not an employer at the time of the
transfer. The successor shall pay contributions at the lowest
rate determined under either of the following:
(a)(i) For transfers before January 1, 1997, the contribution rate of the rate class assigned to the predecessor
employer at the time of the transfer for the remainder of that
(2004 Ed.)
Employer Experience Rating
rate year and continuing until the successor qualifies for a different rate in its own right;
(ii) For transfers on or after January 1, 1997, the contribution rate of the rate class assigned to the predecessor
employer at the time of the transfer for the remainder of that
rate year. Any experience relating to the assignment of that
rate class attributable to the predecessor is transferred to the
successor. Beginning with the January 1 following the transfer, the successor's contribution rate shall be based on the
transferred experience of the acquired business and the successor's experience after the transfer; or
(b) The contribution rate equal to the average industry
rate as determined by the commissioner, but not less than one
percent, and continuing until the successor qualifies for a different rate in its own right. Assignment of employers by the
commissioner to industrial classification, for purposes of this
subsection, must be in accordance with established classification practices found in the "Standard Industrial Classification
Manual" issued by the federal office of management and budget to the third digit provided in the standard industrial classification code, or in the North American industry classification code system.
(3) For transfers before January 1, 2005, if the successor
is not an employer at the time of the transfer and simultaneously acquires the business or a portion of the business of
two or more employers in different rate classes, its rate from
the date the transfer occurred until the end of that rate year
and until it qualifies in its own right for a new rate, shall be
the highest rate class applicable at the time of the acquisition
to any predecessor employer who is a party to the acquisition,
but not less than one percent.
(4) For transfers on or after January 1, 2005, the following applies if the successor is not an employer at the time of
the transfer:
(a) Except as provided in (b) of this subsection, the successor shall pay contributions:
(i) At the contribution rate determined for the predecessor employer at the time of the transfer for the remainder of
the rate year. Any experience attributable to the predecessor
relating to the assignment of the predecessor's rate class is
transferred to the successor. On and after January 1st following the transfer, the successor's array calculation factor rate
shall be based on the transferred experience of the acquired
business and the successor's experience after the transfer; or
(ii) At the contribution rate equal to the sum of the rates
determined by the commissioner under RCW 50.29.025(2)
(c)(ii) and (d)(ii), and 50.29.041, if applicable, and continuing until the successor qualifies for a different rate in its own
right.
(b) If there is a substantial continuity of ownership or
management by the successor of the business of the predecessor, the successor shall pay contributions at the contribution
rate determined for the predecessor employer at the time of
the transfer for the remainder of that rate year. Any experience attributable to the predecessor relating to the assignment
of the predecessor's rate class is transferred to the successor.
On and after January 1st following the transfer, the successor's array calculation factor rate shall be based on the transferred experience of the acquired business and the successor's
experience after the transfer.
(2004 Ed.)
50.29.065
(c) If the successor simultaneously acquires the business
or a portion of the business of two or more employers with
different contribution rates, the successor's rate from the date
the transfer occurred until the end of that rate year and until it
qualifies in its own right for a new rate, shall be the sum of
the rates determined by the commissioner under RCW
50.29.025(2) (a) and (b), and 50.29.041, applicable at the
time of the acquisition to the predecessor employer who,
among the parties to the acquisition, had the largest taxable
payroll in the completed calendar quarter immediately preceding the date of transfer, but not less than the sum of the
rates determined by the commissioner under RCW
50.29.025(2) (c)(ii) and (d)(ii), and 50.29.041, if applicable.
(5) The contribution rate on any payroll retained by a
predecessor employer shall remain unchanged for the
remainder of the rate year in which the transfer occurs.
(6) In all cases, from and after January 1 following the
transfer, the predecessor's contribution rate or, beginning
January 1, 2005, the predecessor's array calculation factor for
each rate year shall be based on its experience with payrolls
and benefits as of the regular computation date for that rate
year including the experience of the acquired business or portion of business up to the date of transfer: PROVIDED, That
if all of the predecessor's business is transferred to a successor or successors, the predecessor shall not be a qualified
employer until it satisfies the requirements of a "qualified
employer" as set forth in RCW 50.29.010. [2003 2nd sp.s. c
4 § 18; 1996 c 238 § 1; 1995 c 56 § 1; 1989 c 380 § 81; 1984
c 205 § 6.]
Reviser's note: Referendum Measure No. 53 was rejected by the voters
at the November 2002 election. This section has been returned to the status
existing before its amendment by 2002 c 149.
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Application—1996 c 238: "This act applies to unemployment contribution rates effective on and after January 1, 1996." [1996 c 238 § 2.]
Conflict with federal requirements—1996 c 238: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1996 c 238 § 3.]
Effective date—1989 c 380 §§ 78-81: See note following RCW
50.04.150.
Conflict with federal requirements—1989 c 380: See note following
RCW 50.04.150.
Severability—1989 c 380: See RCW 15.58.942.
Conflict with federal requirements—Severability—Effective
dates—1984 c 205: See notes following RCW 50.20.120.
50.29.065
50.29.065 Notice of benefits paid and charged to
employer's account. Within thirty days after the end of
every calendar quarter, the commissioner shall notify each
employer of the benefits received during that quarter by each
claimant for whom he or she is the base year employer and
the amount of those benefits charged to his or her experience
rating account. [1984 c 205 § 10.]
Conflict with federal requirements—Severability—Effective
dates—1984 c 205: See notes following RCW 50.20.120.
[Title 50 RCW—page 63]
50.29.070
Title 50 RCW: Unemployment Compensation
50.29.070
50.29.070 Notice of employer benefit charges and
rate of contribution—Review and appeal. (1) Within a
reasonable time after the computation date each employer
shall be notified of the employer's rate of contribution as
determined for the succeeding rate year and factors used in
the calculation. Beginning with rate year 2005, the notice
must include the amount of the contribution rate that is attribut abl e to ea ch component of the rate under R CW
50.29.025(2).
(2) Any employer dissatisfied with the benefit charges
made to the employer's account for the twelve-month period
immediately preceding the computation date or with his or
her determined rate may file a request for review and redetermination with the commissioner within thirty days of the
mailing of the notice to the employer, showing the reason for
such request. Should such request for review and redetermination be denied, the employer may, within thirty days of the
mailing of such notice of denial, file with the appeal tribunal
a petition for hearing which shall be heard in the same manner as a petition for denial of refund. The appellate procedure
prescribed by this title for further appeal shall apply to all
denials of review and redetermination under this section.
[2003 2nd sp.s. c 4 § 19; 1990 c 245 § 8; 1983 1st ex.s. c 23
§ 19; 1973 1st ex.s. c 158 § 14; 1970 ex.s. c 2 § 16.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Conflict with federal requirements—Effective dates—1990 c 245:
See notes following RCW 50.04.030.
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
Effective date—1973 1st ex.s. c 158: See note following RCW
50.08.020.
Effective date—1970 ex.s. c 2: See note following RCW 50.04.020.
Appeal on denial of refund: RCW 50.32.030, 50.32.050.
Appeal to the courts: RCW 50.32.120.
Review by commissioner: RCW 50.32.070.
50.29.080
50.29.080 Redetermination and correction of
employer's contribution rate. The commissioner may redetermine any contribution rate if, within three years of the rate
computation date he finds that the rate as originally computed
was erroneous.
In the event that the redetermined rate is lower than that
originally computed the difference between the amount paid
and the amount which should have been paid on the
employer's taxable payroll for the rate year involved shall be
established as a credit against his tax liability; however, if the
redetermined rate is higher than that originally computed the
difference between the amount paid and the amount which
should have been paid on the employer's taxable payroll shall
be assessed against the employer as contributions owing for
the rate year involved.
The redetermination of an employer's contribution rate
shall not affect the contribution rates which have been established for any other employer nor shall such redetermination
affect any other computation made pursuant to this title.
The employer shall have the same rights to request
review and redetermination as he had from his original rate
determination. [1970 ex.s. c 2 § 17.]
Effective date—1970 ex.s. c 2: See note following RCW 50.04.020.
[Title 50 RCW—page 64]
Chapter 50.32
Chapter 50.32 RCW
REVIEW, HEARINGS, AND APPEALS
Sections
50.32.010
50.32.020
50.32.025
50.32.030
50.32.040
50.32.050
50.32.060
50.32.070
50.32.075
50.32.080
50.32.090
50.32.095
50.32.097
50.32.100
50.32.110
50.32.120
50.32.130
50.32.140
50.32.150
50.32.160
50.32.170
50.32.180
50.32.190
Appeal tribunals.
Filing of benefit appeals.
Mailed appeal or petition.
Appeal from order and notice of assessment.
Benefit appeal procedure.
Contributions appeal procedure.
Conduct of appeal hearings.
Petition for review by commissioner.
Waiver of time for appeal or petition.
Commissioner's review procedure.
Finality of commissioner's decision.
Commissioner's decisions as precedents—Publication.
Applicability of finding, determination, etc., to other action.
Costs.
Fees for administrative hearings.
Procedure for judicial review.
Undertakings on seeking judicial review.
Interstate petitions to Thurston county.
Jurisdiction of court.
Attorneys' fees.
Decision final by agreement.
Remedies of title exclusive.
Costs, charges, and expenses.
50.32.010
50.32.010 Appeal tribunals. The commissioner shall
establish one or more impartial appeal tribunals, each of
which shall consist of an administrative law judge appointed
under chapter 34.12 RCW who shall decide the issues submitted to the tribunal. No administrative law judge may hear
or decide any disputed claim in any case in which he is an
interested party. Wherever the term "appeal tribunal" or "the
appeal tribunal" is used in this title the same refers to an
appeal tribunal established under the provisions of this section. Notice of any appeal or petition for hearing taken to an
appeal tribunal in any proceeding under this title may be filed
with such agency as the commissioner may by regulation prescribe. [1981 c 67 § 30; 1945 c 35 § 117; Rem. Supp. 1945 §
9998-255. Prior: 1943 c 127 § 4; 1941 c 253 § 4.]
Effective dates—Severability—1981 c 67: See notes following RCW
34.12.010.
50.32.020
50.32.020 Filing of benefit appeals. The applicant or
claimant, his or her most recent employing unit or any interested party which the commissioner by regulation prescribes,
may file an appeal from any determination or redetermination
with the appeal tribunal within thirty days after the date of
notification or mailing, whichever is earlier, of such determination or redetermination to his or her last known address:
PROVIDED, That in the event an appeal with respect to any
determination is pending as of the date when a redetermination thereof is issued, such appeal, unless withdrawn, shall be
treated as an appeal from such redetermination. Any appeal
from a determination of denial of benefits which is effective
for an indefinite period shall be deemed to be an appeal as to
all weeks subsequent to the effective date of the denial for
which benefits have already been denied. If no appeal is
taken from any determination, or redetermination, within the
time allowed by the provisions of this section for appeal
therefrom, said determination, or redetermination, as the case
may be, shall be conclusively deemed to be correct except as
hereinbefore provided in respect to reconsideration by the
commissioner of any determination. [1987 c 61 § 1; 1951 c
215 § 10; 1945 c 35 § 118; Rem. Supp. 1945 § 9998-256.
(2004 Ed.)
Review, Hearings, and Appeals
Prior: 1943 c 127 § 4; 1941 c 253 § 4; 1939 c 214 § 4; 1937
c 162 § 6.]
50.32.025
50.32.025 Mailed appeal or petition. The appeal or
petition from a determination, redetermination, order and
notice of assessment, appeals decision, or commissioner's
decision which is (1) transmitted through the United States
mail, shall be deemed filed and received by the addressee on
the date shown by the United States postal service cancellation mark stamped by the United States postal service
employees upon the envelope or other appropriate wrapper
containing it or, (2) mailed but not received by the addressee,
or where received and the United States postal service cancellation mark is illegible, erroneous or omitted, shall be
deemed filed and received on the date it was mailed, if the
sender establishes by competent evidence that the appeal or
petition was deposited in the United States mail on or before
the date due for filing: PROVIDED, That in the case of a
metered cancellation mark by the sender and a United States
postal service cancellation mark on the same envelope or
other wrapper, the latter shall control: PROVIDED, FURTHER, That in any of the above circumstances, the appeal or
petition must be properly addressed and have sufficient postage affixed thereto. [1975 1st ex.s. c 228 § 4; 1969 ex.s. c
200 § 1.]
Effective date—1975 1st ex.s. c 228: See note following RCW
50.04.355.
50.32.030
50.32.030 Appeal from order and notice of assessment. When an order and notice of assessment has been
served upon or mailed to a delinquent employer, as heretofore provided, such employer may within thirty days thereafter file a petition in writing with the appeal tribunal, stating
that such assessment is unjust or incorrect and requesting a
hearing thereon. Such petition shall set forth the reasons why
the assessment is objected to and the amount of contributions,
if any, which said employer admits to be due the employment
security department. If no such petition be filed with the
appeal tribunal within thirty days, the assessment shall be
conclusively deemed to be just and correct: PROVIDED,
That in such cases, and in cases where payment of contributions, interest, or penalties has been made pursuant to a jeopardy assessment, the commissioner may properly entertain a
subsequent application for refund. The filing of a petition on
a disputed assessment with the appeal tribunal shall stay the
distraint and sale proceeding provided for in this title until a
final decision thereon shall have been made, but the filing of
such petition shall not affect the right of the commissioner to
perfect a lien, as provided by this title, upon the property of
the employer. The filing of a petition on a disputed assessment shall stay the accrual of interest and penalties on the disputed contributions until a final decision shall have been
made thereon.
Within thirty days after notice of denial of refund or
adjustment has been mailed or delivered (whichever is the
earlier) to an employer, the employer may file a petition in
writing with the appeal tribunal for a hearing thereon: PROVIDED, That this right shall not apply in those cases in which
assessments have been appealed from and have become final.
The petitioner shall set forth the reasons why such hearing
should be granted and the amount which the petitioner
(2004 Ed.)
50.32.050
believes should be adjusted or refunded. If no such petition
be filed within said thirty days, the determination of the commissioner as stated in said notice shall be final. [1987 c 111
§ 6; 1987 c 61 § 2; 1983 1st ex.s. c 23 § 20; 1959 c 266 § 7;
1949 c 214 § 23; 1945 c 35 § 119; Rem. Supp. 1949 § 9998257.]
Reviser's note: This section was amended by 1987 c 61 § 2 and by
1987 c 111 § 6, each without reference to the other. Both amendments are
incorporated in the publication of this section pursuant to RCW 1.12.025(2).
For rule of construction, see RCW 1.12.025(1).
Conflict with federal requirements—Severability—Effective date—
1987 c 111: See notes following RCW 50.12.220.
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
50.32.040
50.32.040 Benefit appeal procedure. In any proceeding before an appeal tribunal involving a dispute of an individual's initial determination, all matters covered by such initial determination shall be deemed to be in issue irrespective
of the particular ground or grounds set forth in the notice of
appeal.
In any proceeding before an appeal tribunal involving a
dispute of an individual's claim for waiting period credit or
claim for benefits, all matters and provisions of this title relating to the individual's right to receive such credit or benefits
for the period in question, including but not limited to the
question and nature of the claimant's availability for work
within the meaning of RCW 50.20.010(1)(c) and 50.20.080,
shall be deemed to be in issue irrespective of the particular
ground or grounds set forth in the notice of appeal in single
claimant cases. The claimant's availability for work shall be
determined apart from all other matters.
In any proceeding before an appeal tribunal involving an
individual's right to benefits, all parties shall be afforded an
opportunity for hearing after not less than seven days' notice
in accordance with RCW 34.05.434.
In any proceeding involving an appeal relating to benefit
determinations or benefit claims, the appeal tribunal, after
affording the parties reasonable opportunity for fair hearing,
shall render its decision affirming, modifying, or setting aside
the determination or decisions of the unemployment compensation division. The parties shall be duly notified of such
appeal tribunal's decision together with its reasons therefor,
which shall be deemed to be the final decision on the initial
determination or the claim for waiting period credit or the
claim for benefits unless, within thirty days after the date of
notification or mailing, whichever is the earlier, of such decision, further appeal is perfected pursuant to the provisions of
this title relating to review by the commissioner. [2003 2nd
sp.s. c 4 § 32; 1989 c 175 § 117; 1987 c 61 § 3; 1981 c 35 §
10; 1973 c 73 § 8; 1945 c 35 § 120; Rem. Supp. 1945 § 9998258. Prior: 1943 c 127 § 4; 1941 c 253 § 4; 1939 c 214 § 4;
1937 c 162 § 6.]
Conflict with federal requirements—Severability—Effective date—
2003 2nd sp.s. c 4: See notes following RCW 50.01.010.
Effective date—1989 c 175: See note following RCW 34.05.010.
Severability—1981 c 35: See note following RCW 50.22.030.
Effective dates—1973 c 73: See note following RCW 50.04.030.
50.32.050
50.32.050 Contributions appeal procedure. In any
proceeding before an appeal tribunal involving an appeal
[Title 50 RCW—page 65]
50.32.060
Title 50 RCW: Unemployment Compensation
from a disputed order and notice of assessment (for contributions, interest, or penalties due) a disputed denial of refund or
adjustment (of contributions, interest, or penalties paid) or a
disputed experience rating credit, the appeal tribunal, after
affording the parties a reasonable opportunity for hearing,
shall affirm, modify or set aside the notice of assessment,
denial of refund or experience rating credit. The parties shall
be duly notified of such appeal tribunal's decision together
with its reasons therefor which shall be deemed to be the final
decision on the order and notice of assessment, denial of
refund or experience rating credit, as the case may be, unless
within thirty days after the date of notification or mailing,
whichever is the earlier, of such decision, further appeal is
perfected pursuant to the provisions of this title relating to
review by the commissioner. [1987 c 61 § 4; 1983 1st ex.s. c
23 § 21; 1949 c 214 § 24; 1945 c 35 § 121; Rem. Supp. 1949
§ 9998-259.]
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
Review by commissioner: RCW 50.32.070.
50.32.060 Conduct of appeal hearings. The manner in
which any dispute shall be presented to the appeal tribunal,
and the conduct of hearings and appeals, shall be in accordance with regulations prescribed by the commissioner for
determining the rights of the parties, whether or not such regulations conform to common law or statutory rules of evidence and other technical rules of procedure. A full and complete record shall be kept of all appeal tribunal proceedings.
All testimony at any appeal tribunal hearing shall be
recorded, but need not be transcribed unless further appeal is
taken. [1945 c 35 § 122; Rem. Supp. 1945 § 9998-260.]
50.32.060
50.32.070 Petition for review by commissioner.
Within thirty days from the date of notification or mailing,
whichever is the earlier, of any decision of an appeal tribunal,
the commissioner on his or her own order may, or upon petition of any interested party shall, take jurisdiction of the proceedings for the purpose of review thereof. Appeal from any
decision of an appeal tribunal may be perfected so as to prevent finality of such decision if, within thirty days from the
date of mailing the appeal tribunal decision, or notification
thereof, whichever is the earlier, a petition in writing for
review by the commissioner is received by the commissioner
or by such representative of the commissioner as the commissioner by regulation shall prescribe. The commissioner may
also prevent finality of any decision of an appeal tribunal and
take jurisdiction of the proceedings for his or her review
thereof by entering an order so providing on his or her own
motion and mailing a copy thereof to the interested parties
within the same period allowed herein for receipt of a petition
for review. The time limit provided herein for the commissioner's assumption of jurisdiction on his or her own motion
for review shall be deemed to be jurisdictional. [1987 c 61 §
5; 1975 1st ex.s. c 228 § 5; 1947 c 215 § 31; 1945 c 35 § 123;
Rem. Supp. 1947 § 9998-261.]
50.32.070
Effective date—1975 1st ex.s. c 228: See note following RCW
50.04.355.
50.32.075 Waiver of time for appeal or petition. For
good cause shown the appeal tribunal or the commissioner
50.32.075
[Title 50 RCW—page 66]
may waive the time limitations for administrative appeals or
petitions set forth in the provisions of this title. [1975 1st
ex.s. c 228 § 16.]
Effective date—1975 1st ex.s. c 228: See note following RCW
50.04.355.
50.32.080 Commissioner's review procedure. After
having acquired jurisdiction for review, the commissioner
shall review the proceedings in question. Prior to rendering
his decision, the commissioner may order the taking of additional evidence by an appeal tribunal to be made a part of the
record in the case. Upon the basis of evidence submitted to
the appeal tribunal and such additional evidence as the commissioner may order to be taken, the commissioner shall render his decision in writing affirming, modifying, or setting
aside the decision of the appeal tribunal. Alternatively, the
commissioner may order further proceedings to be held
before the appeal tribunal, upon completion of which the
appeal tribunal shall issue a decision in writing affirming,
modifying, or setting aside its previous decision. The new
decision may be appealed under RCW 50.32.070. The commissioner shall mail his decision to the interested parties at
their last known addresses. [1982 1st ex.s. c 18 § 8; 1945 c
35 § 124; Rem. Supp. 1945 § 9998-262.]
50.32.080
Severability—Conflict with federal requirements—1982 1st ex.s. c
18: See notes following RCW 50.12.200.
50.32.090 Finality of commissioner's decision. Any
decision of the commissioner involving a review of an appeal
tribunal decision, in the absence of a petition therefrom as
provided in chapter 34.05 RCW, becomes final thirty days
after service. The commissioner shall be deemed to be a party
to any judicial action involving any such decision and shall
be represented in any such judicial action by the attorney general. [1989 c 175 § 118; 1973 1st ex.s. c 158 § 15; 1945 c 35
§ 125; Rem. Supp. 1945 § 9998-263.]
50.32.090
Effective date—1989 c 175: See note following RCW 34.05.010.
Effective date—1973 1st ex.s. c 158: See note following RCW
50.08.020.
Procedure for judicial review: RCW 50.32.120.
50.32.095 Commissioner's decisions as precedents—
Publication. The commissioner may designate certain commissioner's decisions as precedents. The commissioner's
decisions designated as precedents shall be published and
made available to the public by the department. [1982 1st
ex.s. c 18 § 9.]
50.32.095
Severability—Conflict with federal requirements—1982 1st ex.s. c
18: See notes following RCW 50.12.200.
50.32.097 Applicability of finding, determination,
etc., to other action. Any finding, determination, conclusion, declaration, or final order made by the commissioner, or
his or her representative or delegate, or by an appeal tribunal,
administrative law judge, reviewing officer, or other agent of
the department for the purposes of Title 50 RCW, shall not be
conclusive, nor binding, nor admissible as evidence in any
separate action outside the scope of Title 50 RCW between
an individual and the individual's present or prior employer
before an arbitrator, court, or judge of this state or the United
States, regardless of whether the prior action was between the
50.32.097
(2004 Ed.)
Review, Hearings, and Appeals
same or related parties or involved the same facts or was
reviewed pursuant to RCW 50.32.120. [1988 c 28 § 1.]
50.32.100
50.32.100 Costs. In all proceedings provided by this
title prior to court review involving dispute of an individual's
initial determination, or claim for waiting period credit, or for
benefits, the fees of all witnesses attending such proceedings
pursuant to subpoena shall be paid at the rate fixed by such
regulation as the commissioner shall prescribe and such fees
and all costs of such proceedings otherwise chargeable to
such individual, except charges for services rendered by
counsel or other agent representing such individual, shall be
paid out of the unemployment compensation administration
fund. In all other respects and in all other proceedings under
this title the rule in civil cases as to costs and attorney fees
shall apply: PROVIDED, That cost bills may be served and
filed and costs shall be taxed in accordance with such regulation as the commissioner shall prescribe. [1945 c 35 § 126;
Rem. Supp. 1945 § 9998-264.]
Costs and attorneys' fees: Chapter 4.84 RCW.
50.32.160
modifies a decision of an appeals tribunal. [1973 1st ex.s. c
158 § 17; 1971 c 81 § 120; 1945 c 35 § 129; Rem. Supp. 1945
§ 9998-267. Prior: 1943 c 127 § 4; 1941 c 253 § 4.]
Rules of court: Cf. Title 8 RAP, RAP 18.22.
Effective date—1973 1st ex.s. c 158: See note following RCW
50.08.020.
50.32.140
50.32.140 Interstate petitions to Thurston county.
RCW 34.05.514 to the contrary notwithstanding, petitions to
the superior court from decisions of the commissioner dealing with the applications or claims relating to benefit payments which were filed outside of this state with an authorized representative of the commissioner shall be filed with
the superior court of Thurston county which shall have the
original venue of such appeals. [1989 c 175 § 119; 1973 1st
ex.s. c 158 § 18; 1945 c 35 § 130; Rem. Supp. 1945 § 9998268.]
Effective date—1989 c 175: See note following RCW 34.05.010.
Effective date—1973 1st ex.s. c 158: See note following RCW
50.08.020.
50.32.150
50.32.110
50.32.110 Fees for administrative hearings. No individual shall be charged fees of any kind in any proceeding
involving the individual's application for initial determination, or claim for waiting period credit, or claim for benefits,
under this title by the commissioner or his representatives, or
by an appeal tribunal, or any court, or any officer thereof.
Any individual in any such proceeding before the commissioner or any appeal tribunal may be represented by counsel
or other duly authorized agent who shall neither charge nor
receive a fee for such services in excess of an amount found
reasonable by the officer conducting such proceeding. [1945
c 35 § 127; Rem. Supp. 1945 § 9998-265.]
50.32.120
50.32.120 Procedure for judicial review. Judicial
review of a decision of the commissioner involving the
review of an appeals tribunal decision may be had only in
accordance with the procedural requirements of RCW
34.05.570. [1973 1st ex.s. c 158 § 16; 1971 c 81 § 119; 1945
c 35 § 128; Rem. Supp. 1945 § 9998-266. Prior: 1943 c 127
§ 4; 1941 c 253 § 4; 1939 c 214 § 4; 1937 c 162 § 6.]
Effective date—1973 1st ex.s. c 158: See note following RCW
50.08.020.
Appeals: Chapter 4.88 RCW.
50.32.130
50.32.130 Undertakings on seeking judicial review.
No bond of any kind shall be required of any individual seeking judicial review from a commissioner's decision affecting
such individual's application for initial determination or
claim for waiting period credit or for benefits.
No commissioner's decision shall be stayed by a petition
for judicial review unless the petitioning employer shall first
deposit an undertaking in an amount theretofore deemed by
the commissioner to be due, if any, from the petitioning
employer, together with interest thereon, if any, with the
commissioner or in the registry of the court: PROVIDED,
HOWEVER, That this section shall not be deemed to authorize a stay in the payment of benefits to an individual when
such individual has been held entitled thereto by a decision of
the commissioner which decision either affirms, reverses, or
(2004 Ed.)
50.32.150 Jurisdiction of court. In all court proceedings under or pursuant to this title the decision of the commissioner shall be prima facie correct, and the burden of proof
shall be upon the party attacking the same.
If the court shall determine that the commissioner has
acted within his power and has correctly construed the law,
the decision of the commissioner shall be confirmed; otherwise, it shall be reversed or modified. In case of a modification or reversal the superior court shall refer the same to the
commissioner with an order directing him to proceed in
accordance with the findings of the court.
Whenever any order and notice of assessment shall have
become final in accordance with the provisions of this title,
the court shall upon application of the commissioner enter a
judgment in the amount provided for in said order and notice
of assessment, and said judgment shall have and be given the
same effect as if entered pursuant to civil action instituted in
said court. [1945 c 35 § 131; Rem. Supp. 1945 § 9998-269.
Prior: 1941 c 253 § 4.]
Judgments
entry of: Chapter 4.64 RCW.
generally: Chapter 4.56 RCW.
50.32.160
50.32.160 Attorneys' fees. It shall be unlawful for any
attorney engaged in any appeal to the courts on behalf of an
individual involving the individual's application for initial
determination, or claim for waiting period credit, or claim for
benefits to charge or receive any fee therein in excess of a
reasonable fee to be fixed by the superior court in respect to
the services performed in connection with the appeal taken
thereto and to be fixed by the supreme court or the court of
appeals in the event of appellate review, and if the decision of
the commissioner shall be reversed or modified, such fee and
the costs shall be payable out of the unemployment compensation administration fund. In the allowance of fees the court
shall give consideration to the provisions of this title in
respect to fees pertaining to proceedings involving an individual's application for initial determination, claim for waiting period credit, or claim for benefits. In other respects the
practice in civil cases shall apply. [1988 c 202 § 48; 1971 c
[Title 50 RCW—page 67]
50.32.170
Title 50 RCW: Unemployment Compensation
81 § 121; 1945 c 35 § 132; Rem. Supp. 1945 § 9998-270.
Prior: 1941 c 253 § 4.]
Severability—1988 c 202: See note following RCW 2.24.050.
Attorneys' fees: Chapter 4.84 RCW.
Costs: RCW 50.32.100.
Costs on appeal: Chapter 4.84 RCW.
50.32.170
50.32.170 Decision final by agreement. No appeal
from the decision of an appeal tribunal, or of the commissioner, or of any court in any proceedings provided by this
title may be taken subsequent to the filing with the appeal tribunal, commissioner, or court which rendered the decision,
within the time allowed for appeal, of an agreement in writing approved by all interested parties to the proceedings, providing that no appeal will be taken from such decision. The
provisions of this section shall be jurisdictional. [1945 c 35 §
133; Rem. Supp. 1945 § 9998-271.]
50.32.180
50.32.180 Remedies of title exclusive. The remedies
provided in this title for determining the justness or correctness of assessments, refunds, adjustments, or claims shall be
exclusive and no court shall entertain any action to enjoin an
assessment or require a refund or adjustment except in accordance with the provisions of this title. Matters which may be
determined by the procedures set out in this title shall not be
the subject of any declaratory judgment. [1945 c 35 § 134;
Rem. Supp. 1945 § 9998-272.]
50.32.190
50.32.190 Costs, charges, and expenses. Whenever
any appeal is taken from any decision of the commissioner to
any court, all expenses and costs incurred therein by said
commissioner, including court reporter costs and attorneys'
fees and all costs taxed against such commissioner, shall be
paid out of the unemployment compensation administration
fund.
Neither the commissioner nor the state shall be charged
any fee for any service rendered in connection with litigation
under the unemployment compensation act by the clerk of
any court. [1945 c 35 § 135; Rem. Supp. 1945 § 9998-273.]
Chapter 50.36
Chapter 50.36 RCW
PENALTIES
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
50.36.020
50.36.020 Violations by employers. (1) Any person
required under this title to collect, account for and pay over
any contributions imposed by this title, who willfully fails to
collect or truthfully account for and pay over such contributions, and any person who willfully attempts in any manner to
evade or defeat any contributions imposed by this title or the
payment thereof, is guilty of a gross misdemeanor and shall,
in addition to other penalties provided by law, upon conviction thereof, be fined not more than five thousand dollars, or
imprisoned for not more than one year, or both, together with
the costs of prosecution.
(2) The term "person" as used in this section includes an
officer or individual in the employment of a corporation, or a
member or individual in the employment of a partnership,
who as such officer, individual or member is under a duty to
perform the act in respect of which the violation occurs. A
corporation may likewise be prosecuted under this section
and may be subjected to fine and payment of costs of prosecution as prescribed herein for a person. [2003 c 53 § 280;
1953 ex.s. c 8 § 23; 1945 c 35 § 181; Rem. Supp. 1945 §
9998-320. Prior: 1943 c 127 § 12; 1941 c 253 § 13.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
Sections
50.36.010
50.36.020
50.36.030
employee of the state any property belonging to an employing unit which is liable for contributions, interest, or penalties, or receives, destroys, mutilates, or falsifies any book,
document, or record, or makes under oath any false statement
relating to the financial condition of the employing unit
which is liable for contributions, is guilty of a gross misdemeanor and shall upon conviction thereof be fined not more
than five thousand dollars or be imprisoned for not more than
one year, or both.
(4) The penalty prescribed in this section shall not be
deemed exclusive, but any act which shall constitute a crime
under any law of this state may be the basis of prosecution
under such law notwithstanding that it may also be the basis
for prosecution under this section. [2003 c 53 § 279; 1953
ex.s. c 8 § 22; 1945 c 35 § 180; Rem. Supp. 1945 § 9998-319.
Prior: 1943 c 127 § 12; 1941 c 253 § 13.]
Violations generally.
Violations by employers.
Concealing cause of discharge.
Crimes and punishment: Titles 9, 9A RCW.
50.36.030
50.36.010
50.36.010 Violations generally. (1) It shall be unlawful
for any person to knowingly give any false information or
withhold any material information required under the provisions of this title.
(2) Any person who violates any of the provisions of this
title which violation is declared to be unlawful, and for which
no contrary provision is made, is guilty of a misdemeanor and
shall be punished by a fine of not less than twenty dollars nor
more than two hundred and fifty dollars or by imprisonment
in the county jail for not more than ninety days.
(3) Any person who in connection with any compromise
or offer of compromise willfully conceals from any officer or
[Title 50 RCW—page 68]
50.36.030 Concealing cause of discharge. Employing
units or agents thereof supplying information to the employment security department pertaining to the cause of a benefit
claimant's separation from work, which cause stated to the
department is contrary to that given the benefit claimant by
such employing unit or agent thereof at the time of his separation from the employing unit's employ, shall be guilty of a
misdemeanor and shall be punished by a fine of not less than
twenty dollars nor more than two hundred and fifty dollars or
by imprisonment in the county jail for not more than ninety
days. [1951 c 265 § 13.]
Severability—1951 c 265: See note following RCW 50.98.070.
(2004 Ed.)
Labor Market Information and Economic Analysis
Chapter 50.38
Chapter 50.38 RCW
LABOR MARKET INFORMATION AND
ECONOMIC ANALYSIS
(Formerly: Occupational information service—Forecast)
Sections
50.38.010
50.38.015
50.38.020
50.38.030
50.38.040
50.38.050
50.38.060
50.38.065
50.38.900
50.38.901
50.38.902
Intent.
Definitions.
Occupational information responsibility—Forecast, criteria.
Occupational forecast—Agency consultation.
Annual report.
Department—Duties.
Department—Powers.
Moneys for nonfunded labor market information costs—Disposition.
Effective date—1982 c 43.
Conflict with federal requirements—1993 c 62.
Effective date—1993 c 62.
50.38.010
50.38.010 Intent. It is the intent of this chapter to establish the duties and authority of the employment security
department relating to labor market information and economic analysis. State and federal law mandate the use of
labor market information in the planning, coordinating, management, implementation, and evaluation of certain programs. Often this labor market information is also needed in
studies for the legislature and state programs, like those dealing with growth management, community diversification,
export assistance, prison industries, energy, agriculture,
social services, and environment. Employment, training, education, job creation, and other programs are often mandated
without adequate federal or state funding for the needed labor
market information. Clarification of the department's duties
and authority will assist users of state and local labor market
information products and services to have realistic expectations and provide the department authority to recover actual
costs for labor market information products and services
developed in response to individual requests. [1993 c 62 § 1;
1982 c 43 § 1.]
50.38.030
lishment data, and number of labor-management disputes by
industry and labor market area; and
(d) Program information, which includes but is not limited to program participant or student information gathered in
cooperation with other state and local agencies along with
related labor market information to evaluate the effectiveness, efficiency, and impact of state and local employment,
training, education, and job creation efforts in support of
planning, management, implementation, and evaluation.
(2) "Labor market area" means an economically integrated geographic area within which individuals can reside
and find employment within a reasonable distance or can
readily change employment without changing their place of
residence. Such areas shall be identified in accordance with
criteria used by the bureau of labor statistics of the department of labor in defining such areas or similar criteria established by the governor. The area generally takes the name of
its community. The boundaries depend primarily on economic and geographic factors. Washington state is divided
into labor market areas, which usually include a county or a
group of contiguous counties.
(3) "Labor market analysis" means the measurement and
evaluation of economic forces as they relate to the employment process in the local labor market area. Variables affecting labor market relationships include, but are not limited to,
such factors as labor force changes and characteristics, population changes and characteristics, industrial structure and
development, technological developments, shifts in consumer demand, volume and extent of unionization and trade
disputes, recruitment practices, wage levels, conditions of
employment, and training opportunities.
(4) "Public records" has the same meaning as set forth in
RCW 42.17.020.
(5) "Department" means the employment security
department. [1993 c 62 § 2.]
50.38.020
50.38.015
50.38.015 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Labor market information" means the body of information generated from measurement and evaluation of the
socioeconomic factors and variables influencing the employment process in the state and specific labor market areas.
These socioeconomic factors and variables affect labor
demand and supply relationships and include:
(a) Labor force information, which includes but is not
limited to employment, unemployment, labor force participation, labor turnover and mobility, average hours and earnings,
and changes and characteristics of the population and labor
force within specific labor market areas and the state;
(b) Occupational information, which includes but is not
limited to occupational supply and demand estimates and
projections, characteristics of occupations, wage levels, job
duties, training and education requirements, conditions of
employment, unionization, retirement practices, and training
opportunities;
(c) Economic information, which includes but is not limited to number of business starts and stops by industry and
labor market area, information on employment growth and
decline by industry and labor market area, employer estab(2004 Ed.)
50.38.020 Occupational information responsibility—
Forecast, criteria. The Washington state employment security department shall be the responsible state entity for the
development, administration, and dissemination of Washington state occupational information, including the state occupational forecast. The generation of the forecast is subject to
the following criteria:
(1) The occupational forecast shall be consistent with the
state economic forecast;
(2) Standardized occupational classification codes shall
be adopted, to be cross-referenced with other generally
accepted occupational codes. [1982 c 43 § 2.]
50.38.030
50.38.030 Occupational forecast—Agency consultation. The employment security department shall consult with
the following agencies prior to the issuance of the state occupational forecast:
(1) Office of financial management;
(2) Department of community, trade, and economic
development;
(3) Department of labor and industries;
(4) State board for community and technical colleges;
(5) Superintendent of public instruction;
(6) Department of social and health services;
[Title 50 RCW—page 69]
50.38.040
Title 50 RCW: Unemployment Compensation
(7) Work force training and education coordinating
board; and
(8) Other state and local agencies as deemed appropriate
by the commissioner of the employment security department.
These agencies shall cooperate with the employment
security department, submitting information relevant to the
generation of occupational forecasts. [1995 c 399 § 142;
1993 c 62 § 3; 1985 c 466 § 66; 1985 c 6 § 18; 1982 c 43 § 3.]
Effective date—Severability—1985 c 466: See notes following RCW
43.31.125.
50.38.040
50.38.040 Annual report. The department shall submit
an annual report to the legislature and the governor that
includes, but is not limited to:
(1) Identification and analysis of industries in the United
States, Washington state, and local labor markets with high
levels of seasonal, cyclical, and structural unemployment;
(2) The industries and local labor markets with plant closures and mass lay-offs and the number of affected workers;
(3) An analysis of the major causes of plant closures and
mass lay-offs;
(4) The number of dislocated workers and persons who
have exhausted their unemployment benefits, classified by
industry, occupation, and local labor markets;
(5) The experience of the unemployed in their efforts to
become reemployed. This should include research conducted
on the continuous wage and benefit history;
(6) Five-year industry and occupational employment
projections; and
(7) Annual and hourly average wage rates by industry
and occupation. [1993 c 62 § 4.]
50.38.050
50.38.050 Department—Duties. The department shall
have the following duties:
(1) Oversight and management of a statewide comprehensive labor market and occupational supply and demand
information system, including development of a five-year
employment forecast for state and labor market areas;
(2) Produce local labor market information packages for
the state's counties, including special studies and job impact
analyses in support of state and local employment, training,
education, and job creation programs, especially activities
that prevent job loss, reduce unemployment, and create jobs;
(3) Coordinate with the office of financial management
and the office of the forecast council to improve employment
estimates by enhancing data on corporate officers, improving
business establishment listings, expanding sample for
employment estimates, and developing business entry/exit
analysis relevant to the generation of occupational and economic forecasts; and
(4) In cooperation with the office of financial management, produce long-term industry and occupational employment forecasts. These forecasts shall be consistent with the
official economic and revenue forecast council biennial economic and revenue forecasts. [1993 c 62 § 5.]
50.38.060
50.38.060 Department—Powers. To implement this
chapter, the department has authority to:
[Title 50 RCW—page 70]
(1) Establish mechanisms to recover actual costs
incurred in producing and providing otherwise nonfunded
labor market information.
(a) If the commissioner, in his or her discretion, determines that providing labor market information is in the public
interest, the requested information may be provided at
reduced costs.
(b) The department shall provide access to labor market
information products that constitute public records available
for public inspection and copying under chapter 42.17 RCW,
at fees not exceeding those allowed under RCW 42.17.300
and consistent with the department's fee schedule;
(2) Receive federal set aside funds from several federal
programs that are authorized to fund state and local labor
market information and are required to use such information
in support of their programs;
(3) Enter into agreements with other public agencies for
statistical analysis, research, or evaluation studies of local,
state, and federally funded employment, training, education,
and job creation programs to increase the efficiency or quality of service provided to the public consistent with chapter
50.13 RCW;
(4) Coordinate with other state agencies to study ways to
standardize federal and state multi-agency administrative
records, such as unemployment insurance information and
other information to produce employment, training, education, and economic analysis needed to improve labor market
information products and services; and
(5) Produce agricultural labor market information and
economic analysis needed to facilitate the efficient and effective matching of the local supply and demand of agricultural
labor critical to an effective agricultural labor exchange in
Washington state. Information collected for an agricultural
labor market information effort will be coordinated with
other federal, state, and local statistical agencies to minimize
reporting burden through cooperative data collection efforts
for statistical analysis, research, or studies. [1993 c 62 § 6.]
50.38.065
50.38.065 Moneys for nonfunded labor market information costs—Disposition. Moneys received under RCW
50.38.060(1) to cover the actual costs of nonfunded labor
market information shall be deposited in the unemployment
compensation administration fund and expenditures shall be
authorized only by appropriation. [1993 c 62 § 7.]
50.38.900
50.38.900 Effective date—1982 c 43. This act shall
take effect July 1, 1982. [1982 c 43 § 5.]
50.38.901
50.38.901 Conflict with federal requirements—1993
c 62. If any part of this act is found to be in conflict with federal requirements which are a prescribed condition to the
allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits,
the conflicting part of this act is hereby declared to be inoperative solely to the extent of the conflict, and such finding or
determination shall not affect the operation of the remainder
of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state. [1993 c 62 § 10.]
(2004 Ed.)
Miscellaneous Provisions
50.38.902 Effective date—1993 c 62. This act is necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its
existing public institutions, and shall take effect July 1, 1993.
[1993 c 62 § 13.]
50.38.902
Chapter 50.40
Chapter 50.40 RCW
MISCELLANEOUS PROVISIONS
Sections
50.40.010
50.40.020
50.40.040
50.40.050
50.40.065
50.40.066
Waiver of rights void.
Exemption of benefits.
No vested rights.
Child support obligations.
"Vendors in good standing"—Determination by governor's
committee on disability issues and employment—Advisory
subcommittee—Rules.
Rules to implement RCW 50.40.065—Fees authorized—Vendors in good standing account.
50.40.010 Waiver of rights void. (1) Any agreement
by an individual to waive, release, or commute his or her
rights to benefits or any other rights under this title shall be
void.
(2) Any agreement by an individual in the employ of any
person or concern to pay all or any portion of an employer's
contributions, required under this title from such employer,
shall be void.
(3) No employer shall directly or indirectly make or
require or accept any deduction from remuneration for services to finance the employer's contributions required from
him or her, or require or accept any waiver of any right hereunder by any individual in his or her employ.
(4) A person violating this section is guilty of a gross
misdemeanor. [2003 c 53 § 281; 1945 c 35 § 182; Rem.
Supp. 1945 § 9998-321. Prior: 1943 c 127 § 11; 1941 c 253
§ 12; 1939 c 214 § 13; 1937 c 162 § 15.]
50.40.010
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
50.40.020 Exemption of benefits. Any assignment,
pledge, or encumbrance of any right to benefits which are or
may become due or payable under this title shall be void.
Such rights to benefits shall be exempt from levy, execution,
attachment, or any other remedy whatsoever provided for the
collection of debts, except as provided in RCW 50.40.050.
Benefits received by any individual, so long as they are not
commingled with other funds of the recipient, shall be
exempt from any remedy whatsoever for collection of all
debts except debts incurred for necessaries furnished such
individual or his spouse or dependents during the time when
such individual was unemployed. Any waiver of any exemption provided for in this section shall be void. [1982 1st ex.s.
c 18 § 10. Prior: 1982 c 201 § 7; 1945 c 35 § 183; Rem. Supp.
1945 § 9998-322; prior: 1943 c 127 § 11; 1941 c 253 § 12;
1939 c 214 § 13; 1937 c 162 § 15. Formerly codified in RCW
50.40.020, part and 50.40.030, part.]
50.40.020
Severability—Conflict with federal requirements—1982 1st ex.s. c
18: See notes following RCW 50.12.200.
50.40.040 No vested rights. The legislature reserves
the right to amend or repeal all or any part of this title at any
time; and there shall be no vested private right of any kind
50.40.040
(2004 Ed.)
50.40.050
against such amendment or repeal. All the rights, privileges,
or immunities conferred by this title or by acts done pursuant
thereto shall exist subject to the power of the legislature to
amend or repeal this title at any time. [1945 c 35 § 187; no
RRS. Prior: 1941 c 253 § 1; 1939 c 214 § 1; 1937 c 162 § 3.]
50.40.050
50.40.050 Child support obligations. (1) An individual filing a new claim for unemployment compensation shall,
at the time of filing the claim, disclose whether or not the
individual owes child support obligations as defined under
subsection (7) of this section. If the individual discloses that
he or she owes child support obligations and is determined to
be eligible for unemployment compensation, the commissioner shall notify the state or local child support enforcement agency enforcing those obligations that the individual
has been determined to be eligible for unemployment compensation.
(2) The commissioner shall deduct and withhold from
any unemployment compensation payable to an individual
who owes child support obligations as defined under subsection (7) of this section:
(a) The amount specified by the individual to the commissioner to be deducted and withheld under this subsection,
if neither (b) nor (c) of this subsection is applicable;
(b) The amount (if any) determined pursuant to an agreement submitted to the commissioner under section
454(20)(B)(i) of the Social Security Act by the state or local
child support enforcement agency, unless (c) of this subsection is applicable; or
(c) Any amount otherwise required to be so deducted and
withheld from such unemployment compensation pursuant to
legal process, as that term is defined in section 462(e) of the
Social Security Act, properly served upon the commissioner.
(3) Any amount deducted and withheld under subsection
(2) of this section shall be paid by the commissioner to the
appropriate state or local child support enforcement agency.
(4) Any amount deducted and withheld under subsection
(2) of this section shall be treated for all purposes as if it were
paid to the individual as unemployment compensation and
paid by that individual to the state or local child support
enforcement agency in satisfaction of the individual's child
support obligations.
(5) For the purposes of this section, "unemployment
compensation" means any compensation payable under this
chapter including amounts payable by the commissioner
under an agreement under any federal law providing for compensation, assistance, or allowances with respect to unemployment.
(6) This section applies only if appropriate arrangements
have been made for reimbursement by the state or local child
support enforcement agency for the administrative costs
incurred by the commissioner under this section which are
attributable to child support obligations being enforced by the
state or local child support enforcement agency.
(7) "Child support obligations" as used in this section
means only those obligations which are being enforced pursuant to a plan described in section 454 of the Social Security
Act which has been approved by the secretary of health and
human services under part D of Title IV of the Social Security Act.
[Title 50 RCW—page 71]
50.40.065
Title 50 RCW: Unemployment Compensation
(8) "State or local child support enforcement agency" as
used in this section means any agency of this state or a political subdivision thereof operating pursuant to a plan
described in subsection (7) of this section. [1982 1st ex.s. c
18 § 11. Prior: 1982 c 201 § 3.]
Severability—Conflict with federal requirements—1982 1st ex.s. c
18: See notes following RCW 50.12.200.
50.40.065
50.40.065 "Vendors in good standing"—Determination by governor's committee on disability issues and
employment—Advisory subcommittee—Rules. (Expires
December 31, 2007.) (1) No less frequently than once each
year, the governor's committee on disability issues and
employment shall determine whether entities seeking to qualify as vendors in good standing, pursuant to this section and
RCW 43.19.531, have achieved, or continue to work towards,
the goal of enhancing opportunities for persons of disabilities
to maximize their employment and career advancement, and
increase the number employed and their wages.
(2) In making the determination provided for in subsection (1) of this section, the governor's committee on disability
issues and employment shall appoint and, except in the case
of malfeasance or misfeasance, shall rely upon the conclusions of an advisory subcommittee consisting of: (a) Three
members chosen from among those current or former clients
of a community rehabilitation program who have nominated
themselves, at least one of whom must be a person with a
developmental disability; (b) one member chosen from
among those guardians, parents, or other relatives of a current
client or employee of a community rehabilitation program
who have nominated themselves; (c) one member chosen
from among those who have been nominated by a community
rehabilitation program; (d) one member chosen from among
those owners of a business owned and operated by persons
with disabilities who have nominated themselves; (e) one
member who is designated by the developmental disabilities
council; (f) one member who is a member of and selected by
the governor's committee on disability issues and employment; (g) one member who is designated by the secretary of
the department of social and health services; and (h) one
member who is designated by the director of the department
of services for the blind.
(3) The advisory subcommittee appointed by the governor's committee on disability issues and employment shall
conclude that entities seeking to qualify, pursuant to this section and RCW 43.19.531, as vendors in good standing, have
achieved, or continue to work towards, the goal of enhancing
opportunities for persons of disabilities to maximize their
employment and career advancement, and increase the number employed and their wages if, and only if, the entity provides reasonably conclusive evidence that, during the twelvemonth period immediately preceding the entity's application,
at least one-half of the following measurement categories
applicable to the entity have been either achieved, pursuant to
rules established under subsection (4) of this section, or have
been improved as compared to the entity's condition with
respect to that measurement category one year ago:
(a) The number of people with disabilities in the entity's
total work force who are working in integrated settings;
[Title 50 RCW—page 72]
(b) The percentage of the people with disabilities in the
entity's total work force who are working in integrated settings;
(c) The number of people with disabilities in the entity's
total work force who are working in individual supported
employment settings;
(d) The percentage of the people with disabilities in the
entity's total work force who are working in individual supported employment settings;
(e) The number of people with disabilities in the entity's
total work force who, during the last twelve months, have
transitioned to less restrictive employment settings either
within the entity or with other community employers;
(f) The number of people with disabilities in the entity's
total work force who are earning at least the state minimum
wage;
(g) The percentage of the people with disabilities in the
entity's total work force who are earning at least the state
minimum wage;
(h) The number of people with disabilities serving in
supervisory capacities within the entity;
(i) The percentage of supervisory positions within the
entity that are occupied by people with disabilities;
(j) The number of people with disabilities serving in an
ownership capacity or on the governing board of the entity;
(k) The ratio of the total amount paid by the entity in
wages, salaries, and related employment benefits to people
with disabilities, as compared to the amount paid by the
entity in wages, salaries, and related employment benefits
paid by the entity to persons without disabilities during the
previous year; and
(l) The percentage of people with disabilities in the
entity's total work force for whom the entity has developed a
reasonable, achievable, and written career plan.
(4) The commissioner shall consult with the advisory
subcommittee established in subsection (2) of this section to
develop and adopt rules establishing the measurement at
which it is deemed that the measurement categories identified
in subsection (3)(b), (d), (e), (g), (h), (j), (k), and (l) of this
section have been achieved.
(5) This section expires December 31, 2007. [2003 c
136 § 7.]
50.40.066 Rules to implement RCW 50.40.065—Fees
authorized—Vendors in good standing account. (Expires
December 31, 2007.) (1) The commissioner is authorized to
adopt rules to implement RCW 50.40.065, including but not
limited to authority to establish (a) a nonrefundable application fee of not more than five hundred dollars to be paid by
each entity seeking to establish or renew qualification as a
vendor in good standing, pursuant to RCW 43.19.531 and
50.40.065; (b) a fee of not more than two percent of the face
amount of any contract awarded under chapter 136, Laws of
2003; or (c) both fees identified in (a) and (b) of this subsection.
(2) The fee or fees established pursuant to subsection (1)
of this section must set a level of revenue sufficient to recover
costs incurred by the department of general administration in
fulfilling the duties identified in RCW 43.19.531 and the
governor's committee on disability issues and employment in
fulfilling the duties identified in RCW 50.40.065.
50.40.066
(2004 Ed.)
Special Coverage Provisions
(3) The vendors in good standing account is created in
the custody of the state treasurer. All receipts from the fee or
fees established pursuant to subsection (1) of this section
must be deposited into the account. Expenditures from the
account may be used only for the purpose described in subsection (2) of this section. Expenditures from the account
may be authorized only upon the approval of both the director
of the department of general administration and the commissioner, or their respective designees. The account is subject
to allotment procedures under chapter 43.88 RCW, but an
appropriation is not required for expenditures.
(4) This section expires December 31, 2007, and any
unencumbered funds remaining in the vendors in good standing account on that date shall revert to the general fund.
[2003 c 136 § 8.]
Chapter 50.44
Chapter 50.44 RCW
SPECIAL COVERAGE PROVISIONS
Sections
50.44.010
50.44.020
50.44.030
50.44.035
50.44.037
50.44.040
50.44.050
50.44.053
50.44.055
50.44.060
50.44.070
50.44.080
50.44.090
Religious, charitable, educational, or other nonprofit organizations—Exemption—Payments.
Instrumentalities of this state, other states, political subdivisions.
Political subdivisions, instrumentalities of this state and other
state.
Local government tax.
"Institution of higher education" defined.
Services excluded under "employment" for certain purposes.
Benefits payable, terms and conditions—"Academic year"
defined.
"Reasonable assurance" defined—Presumption, employees of
educational institutions.
Finding—Intent—Reasonable assurance, application to
employees of educational institutions.
Nonprofit organization employees—Financing of benefits—
Election of payments in lieu of contributions.
Election to make payments in lieu of contributions—Bond or
deposit.
Construction—Compliance with federal unemployment tax
act, department of labor guidelines.
Construction—Mandatory coverage of employees of political
subdivision under 1977 ex.s. c 292.
Coverage of corporate officers: RCW 50.04.165.
50.44.010
50.44.010 Religious, charitable, educational, or other
nonprofit organizations—Exemption—Payments. Services performed subsequent to December 31, 1971, by an
individual in the employ of a religious, charitable, educational or other organization which is excluded from the term
"employment" as defined in the federal unemployment tax
act solely by reason of section 3306(c)(8) of that act shall be
deemed services performed in employment unless such service is exempted under RCW 50.44.040.
Such organization shall make payments to the unemployment compensation fund based on such services in
accordance with the provisions of RCW 50.44.060. [1971 c
3 § 18.]
50.44.020
50.44.020 Instrumentalities of this state, other states,
political subdivisions. Commencing with benefit years
beginning on or after January 28, 1971, services performed
subsequent to September 30, 1969 in the employ of this state
or any of its wholly owned instrumentalities or jointly owned
instrumentalities of this state and another state or this state
and one or more of its political subdivisions shall be deemed
(2004 Ed.)
50.44.030
services in employment unless such services are excluded
from the term employment by RCW 50.44.040.
The state shall make payments in lieu of contributions
with respect to benefits attributable to such employment as
provided with respect to nonprofit organizations in subsections (2) and (3) of RCW 50.44.060: PROVIDED, HOWEVER, That for weeks of unemployment beginning after January 1, 1979, the state shall pay in addition to the full amount
of regular and additional benefits so attributable the full
amount of extended benefits so attributable: PROVIDED,
FURTHER, That no payment will be required from the state
until the expiration of the twelve-month period following the
end of the biennium in which the benefits attributable to such
employment were paid. The amount of this payment shall
include an amount equal to the amount of interest that would
have been realized for the benefit of the unemployment compensation trust fund had such payments been received within
thirty days after the day of the quarterly billing provided for
in RCW 50.44.060(2)(a). [1977 ex.s. c 292 § 13; 1971 c 3 §
19.]
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
50.44.030
50.44.030 Political subdivisions, instrumentalities of
this state and other state. (1) All services performed for any
political subdivision or instrumentality of one or more political subdivisions of this state or one or more political subdivisions of this state and any other state after December 31,
1977, will be deemed to be services in employment to the
extent coverage is not exempted under RCW 50.44.040.
(2) All such units of government shall file, before
December 15, 1977, a written registration with the commissioner of the employment security department. Such registration shall specify the manner in which the unit of government
will finance the payment of benefits. The elections available
to counties, cities and towns are the local government tax,
provided for in RCW 50.44.035, or payment in lieu of contributions, as described in RCW 50.44.060. The elections available to other units of government are the contributions plan in
chapters 50.24 and 50.29 RCW, or payments in lieu of contributions, described in RCW 50.44.060. Under any election the
governmental unit will be charged the full amount of regular,
additional, and extended benefits attributable to its account.
(3) A unit of government may switch from its current
method of financing the payment of benefits by electing any
other method which it would be authorized to select pursuant
to the terms of subsection (2) of this section. Notification of
such election must be filed with the commissioner no less
than thirty days prior to the taxable year for which the new
method of financing the payment of benefits is to be effective. An election under this section shall remain in effect for
no less than two taxable years.
(4) Any political subdivision or instrumentality of more
than one political subdivision of this state is hereby authorized to enter into agreements with other political subdivisions or instrumentalities of more than one political subdivision of this state to form pool accounts for the purpose of
making payments in lieu of contributions. These accounts
shall be formed and administered in accordance with applicable regulations. The formation of such accounts shall not
relieve the governmental unit of the responsibility for making
[Title 50 RCW—page 73]
50.44.035
Title 50 RCW: Unemployment Compensation
required payments in the event that the pool account does not
make the payments. [1981 c 35 § 11; 1977 ex.s. c 292 § 14;
1972 ex.s. c 35 § 2; 1971 c 3 § 20.]
Severability—1981 c 35: See note following RCW 50.22.030.
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
50.44.035
50.44.035 Local government tax. (1) Any county, city,
or town not electing to make payments in lieu of contributions shall pay a "local government tax." Taxes paid under
this section shall be paid into an administratively identifiable
account in the unemployment compensation fund. This
account shall be self-sustaining. For calendar years 1978 and
1979 all such employers shall pay local government tax at the
rate of one and one-quarter percent of all remuneration paid
by the governmental unit for services in its employment. For
each year after 1979 each such employer's rate of tax shall be
determined in accordance with this section: PROVIDED,
HOWEVER, That whenever it appears to the commissioner
that the anticipated benefit payments from the account would
jeopardize reasonable reserves in this identifiable account the
commissioner may at the commencement of any calendar
quarter, impose an emergency excess tax of not more than
one percent of remuneration paid by the participating governmental units which "excess tax" shall be paid in addition to
the applicable rate computed pursuant to this section until the
calendar year following the next September 1st.
(2) A reserve account shall be established for each such
employer.
(a) The "reserve account" of each such employer shall be
credited with tax amounts paid and shall be charged with benefit amounts charged in accordance with the formula set forth
in RCW 50.44.060 as now or hereafter amended except that
such employer's account shall be charged for the full amount
of extended benefits so attributable for weeks of unemployment commencing after January 1, 1979. Such credits and
charges shall be cumulative from January 1, 1978.
(b) After the cutoff date, the "reserve ratio" of each such
employer shall be computed by dividing its reserve account
balance as of the computation date by the total remuneration
paid during the preceding calendar year for services in its
employment. This division shall be carried to four decimal
places, with the remaining fraction, if any, disregarded.
(3) A "benefit cost ratio" for each such employer shall be
computed by dividing its total benefit charges during the
thirty-six months ending on June 30th by its total remuneration during the three preceding calendar years: PROVIDED,
That after August 31st in 1979 each employer's total benefit
charges for the twelve months ending on June 30th shall be
divided by its total remuneration paid in the last three quarters of calendar year 1978; and after August 31st in 1980 each
employer's total benefit charges for the twenty-four months
ending June 30th shall be divided by its total remuneration
paid in the last three calendar quarters of 1978 and the four
calendar quarters of 1979. Such computations shall be carried
to four decimal places, with the remaining fraction, if any,
disregarded.
(4) For each such employer its benefit cost ratio shall be
subtracted from its reserve ratio. One-third of the resulting
amount shall be subtracted from its benefit cost ratio. The
resulting figure, expressed as a percentage and rounded to the
[Title 50 RCW—page 74]
nearest tenth of one percent, shall become its local government tax rate for the following rate year. For the rate year
1980 no tax rate shall be less than 0.6 percent nor more than
2.2 percent. For 1981 no tax rate shall be less than 0.4 percent
nor more than 2.6 percent. For years after 1981 no tax rate
shall be less than 0.2 percent or more than 3.0 percent. No
individual rate shall be increased any more than 1.0 percent
from one rate year to the next.
(5) Any county, city, or town electing participation under
this section at any time after December 15, 1977, shall be
assigned a tax rate of one and one-quarter percent of total
remuneration for the first eight quarters of the participation.
(6) "Local government tax" shall be deemed to be "contributions" to the extent that such usage is consistent with the
purposes of this title. Such construction shall include but not
be limited to those portions of this title and the rules enacted
pursuant thereto dealing with assessments, interest, penalties,
liens, collection procedures and remedies, administrative and
judicial review, and the imposition of administrative, civil,
and criminal sanctions. [1998 c 245 § 100; 1983 1st ex.s. c 23
§ 22; 1977 ex.s. c 292 § 15.]
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
50.44.037
50.44.037 "Institution of higher education" defined.
For the purposes of this chapter, the term "institution of
higher education" means an educational institution in this
state which:
(1) Admits as regular students only individuals having a
certificate of graduation from a high school, or the recognized equivalent of such a certificate;
(2) Is legally authorized within this state to provide a
program of education beyond high school;
(3) Provides an educational program for which it awards
a bachelor's or higher degree, or provides a program which is
acceptable for full credit toward such a degree, or offers a
program of training to prepare students for gainful employment in a recognized occupation; and
(4) Is a public or other nonprofit institution.
Notwithstanding any of the foregoing subsections, all
colleges and universities in this state are "institutions of
higher education". [1977 ex.s. c 292 § 16.]
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
50.44.040
50.44.040 Services excluded under "employment"
for certain purposes. The term "employment" as used in
RCW 50.44.010, 50.44.020, and 50.44.030 shall not include
service performed:
(1) In the employ of (a) a church or convention or association of churches, or (b) an organization which is operated
primarily for religious purposes and which is operated, supervised, controlled, or principally supported by a church or
convention or association of churches; or
(2) By a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by
such order; or
(2004 Ed.)
Special Coverage Provisions
(3) Before January 1, 1978, in the employ of a nongovernmental educational institution, approved or accredited by
the state board of education, which is not an "institution of
higher education"; or
(4) In a facility conducted for the purpose of carrying out
a program of (a) rehabilitation for individuals whose earning
capacity is impaired by age or physical or mental deficiency
or injury, or (b) providing remunerative work for individuals
who because of their impaired physical or mental capacity
cannot be readily absorbed in the competitive labor market,
by an individual receiving such rehabilitation or remunerative work; or
(5) As part of an unemployment work-relief or worktraining program assisted or financed in whole or in part by a
federal agency or an agency of a state or political subdivision
thereof, by an individual receiving such work-relief or worktraining; or
(6) For a custodial or penal institution by an inmate of
the custodial or penal institution; or
(7) In the employ of a hospital, if such service is performed by a patient of such hospital; or
(8) In the employ of a school, college, or university, if
such service is performed (a) by a student who is enrolled and
is regularly attending classes at such school, college, or university, or (b) by the spouse of such a student, if such spouse
is advised, at the time such spouse commences to perform
such service, that (i) the employment of such spouse to perform such service is provided under a program to provide
financial assistance to such student by such school, college,
or university, and (ii) such employment will not be covered
by any program of unemployment insurance; or
(9) By an individual under the age of twenty-two who is
enrolled at a nonprofit or public educational institution which
normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried
on as a student in a full time program, taken for credit at such
institution, which combines academic instruction with work
experience, if such service is an integral part of such program, and such institution has so certified to the employee,
except that this subsection shall not apply to service performed in a program established for or on behalf of an
employer or group of employers; or
(10) Before January 1, 1978, in the employ of the state or
one of its instrumentalities or a political subdivision or one of
its instrumentalities by an individual who is (a) occupying an
elective office, or (b) who is compensated solely on a fee or
per diem basis; or
(11) Before January 1, 1978, in the employ of the legislature of the state of Washington by an individual who is
compensated pursuant to an agreement which provides for a
guaranteed rate of compensation for irregular hours worked;
or
(12) In the employ of a nongovernmental preschool
which is devoted exclusively to the area of child development
training of preschool age children through an established curriculum of formal classroom or laboratory instruction which
did not employ four or more individuals on each of some
twenty days during the calendar year or the preceding calendar year, each day being in a different calendar week; or
(2004 Ed.)
50.44.050
(13) After December 31, 1977, in the employ of the state
or any of its instrumentalities or political subdivisions of this
state in any of its instrumentalities by an individual in the
exercise of duties:
(a) As an elected official;
(b) As a member of the national guard or air national
guard; or
(c) In a policymaking position the performance of the
duties of which ordinarily do not require more than eight
hours per week. [1977 ex.s. c 292 § 17; 1975 1st ex.s. c 67 §
1; 1975 c 4 § 1; 1973 c 73 § 9; 1971 c 3 § 21.]
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
Effective dates—1973 c 73: See note following RCW 50.04.030.
Exemption from unemployment compensation coverage
conservation corps members: RCW 43.220.170.
Washington service corps enrollees: RCW 50.65.120.
50.44.050
50.44.050 Benefits payable, terms and conditions—
"Academic year" defined. Except as otherwise provided in
subsections (1) through (4) of this section, benefits based on
services in employment covered by or pursuant to this chapter shall be payable on the same terms and subject to the same
conditions as compensation payable on the basis of other service subject to this title.
(1) Benefits based on any and all service in an instructional, research, or principal administrative capacity for any
and all educational institutions shall not be paid to an individual for any week of unemployment which commences during
the period between two successive academic years or
between two successive academic terms within an academic
year (or, when an agreement provides instead for a similar
period between two regular but not successive terms within
an academic year, during such period) if such individual performs such services in the first of such academic years or
terms and if there is a contract or reasonable assurance that
such individual will perform services in any such capacity for
any educational institution in the second of such academic
years or terms. Any employee of a common school district
who is presumed to be reemployed pursuant to RCW
28A.405.210 shall be deemed to have a contract for the ensuing term.
(2) Benefits shall not be paid based on any and all services in any other capacity for any and all educational institutions for any week of unemployment which commences during the period between two successive academic years or
between two successive academic terms within an academic
year, if such individual performs such services in the first of
such academic years or terms and there is a reasonable assurance that such individual will perform such services in the
second of such academic years or terms: PROVIDED, That
if benefits are denied to any individual under this subsection
and that individual was not offered an opportunity to perform
such services for the educational institution for the second of
such academic years or terms, the individual is entitled to a
retroactive payment of benefits for each week for which the
individual filed a timely claim for benefits and for which benefits were denied solely by reason of this subsection.
(3) Benefits shall not be paid based on any services
described in subsections (1) and (2) of this section for any
week of unemployment which commences during an estab[Title 50 RCW—page 75]
50.44.050
Title 50 RCW: Unemployment Compensation
lished and customary vacation period or holiday recess if
such individual performs such services for any educational
institution in the period immediately before such vacation
period or holiday recess, and there is a reasonable assurance
that such individual will perform such services for any educational institution in the period immediately following such
vacation period or holiday recess.
(4) Benefits shall not be paid (as specified in subsections
(1), (2), or (3) of this section) based on any services described
in subsections (1) or (2) of this section to any individual who
performed such services in any educational institution while
in the employ of an educational service district which is
established pursuant to chapter 28A.310 RCW and exists to
provide services to local school districts.
(5) As used in this section, "academic year" means: Fall,
winter, spring, and summer quarters or comparable semesters
unless, based upon objective criteria including enrollment
and staffing, the quarter or comparable semester is not in fact
a part of the academic year for the particular institution.
[2001 c 100 § 2; 1998 c 233 § 2; 1995 c 296 § 2; 1990 c 33 §
587; 1984 c 140 § 2; 1983 1st ex.s. c 23 § 23; 1981 c 35 § 12;
1980 c 74 § 2; 1977 ex.s. c 292 § 18; 1975 1st ex.s. c 288 §
17; 1973 c 73 § 10; 1971 c 3 § 22.]
Intent—Findings—2001 c 100: "It is the intent of the legislature to
clarify requirements related to the use of base year hours and wages for certain employees at educational institutions, for the purpose of determining eligibility for unemployment insurance benefits.
The legislature finds that, unless clarified, Washington's unemployment compensation law may be out of conformity with the federal unemployment tax act, which poses a significant economic risk to the state's private employers, the state's general fund, and to the administration of the
state's unemployment insurance system. It is the intent of the legislature to
change Washington's unemployment law only to the extent necessary to
ensure it conforms with federal law governing the use of base year hours and
wages earned at educational institutions.
The legislature finds that the United States department of labor will
rely on state law and its application as interpreted in state court decisions,
especially Pechman v. Employment Security, to determine if Washington
state law conforms to federal guidelines in this area. Therefore, it is the intent
of the legislature to clearly communicate to the courts that the purpose for the
section 2, chapter 100, Laws of 2001 amendment to RCW 50.44.050 is to
interpret state law in a manner that conforms to federal guidelines.
The legislature finds that federal law requires that school hours and
wages in the base year must be restricted from use to establish eligibility for
an unemployment compensation claim for employees of educational institutions during specified times. Further, federal law specifies that when
required to restrict base year school hours and wages, it must be any and all
hours and wages from any and all educational institutions, not just the hours
and wages from institutions where there is a reasonable assurance of returning to work following a customary nonwork period. Therefore, it is the intent
of the legislature to restrict hours worked and wages earned as required by
federal law.
Customary nonwork periods for educational institutions include:
(1) The period between two successive academic years;
(2) The period between two successive academic terms within an academic year;
(3) A similar period between two regular but not successive terms
within an academic year; or
(4) An established and customary vacation period or holiday recess.
Restricted use of base year hours and wages from educational institutions shall occur only in the circumstances described in RCW 50.44.050 (as
amended by chapter 100, Laws of 2001) and in RCW 50.44.053, and as further defined in rules promulgated by the employment security department."
[2001 c 100 § 1.]
Conflict with federal requirements—2001 c 100: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this
[Title 50 RCW—page 76]
act. Rules adopted under this act must meet federal requirements that are a
necessary condition to the receipt of federal funds by the state or the granting
of federal unemployment tax credits to employers in this state." [2001 c 100
§ 3.]
Effective date—2001 c 100: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[April 19, 2001]." [2001 c 100 § 4.]
Intent—Findings—1998 c 233: "It is the intent of the legislature to
clarify requirements related to unemployment compensation for employees
at educational institutions.
The legislature finds that, unless clarified, Washington's unemployment compensation law may be out of conformity with the federal unemployment tax act, which finding poses a significant economic risk to the
state's private employers and to the administration of the state's unemployment insurance system. It is the intent of the legislature, by the 1998, chapter
233 amendments to RCW 50.44.050 and 50.44.053, to bring Washington's
unemployment compensation law into conformity with federal law in these
areas of concern.
The legislature finds that some instructional staff at the state's educational institutions receive an appointment of employment for an indefinite
period while others may face circumstances that do not provide a reasonable
expectation of employment during an ensuing academic year or term.
Therefore, it is the intent of the legislature that the employment security department continue to make determinations of educational employees'
eligibility for unemployment compensation for the period between academic
years or terms based on a finding of reasonable assurance that the employee
will have employment for the ensuing academic year or term and that the
determination in each employee's case is made on an individual basis, consistent with federal guidelines. This determination must take into consideration contingencies that may exist in fact in an individual case. The 1998,
chapter 233 amendment to RCW 50.44.053 is not intended to change the
practice used by the employment security department when determining reasonable assurance. If, during fact-finding, there is a disagreement about
whether an individual has reasonable assurance, the educational institution
must provide documentation that reasonable assurance exists for that individual." [1998 c 233 § 1.]
Conflict with federal requirements—1998 c 233: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this
act. Rules adopted under this act must meet federal requirements that are a
necessary condition to the receipt of federal funds by the state or the granting
of federal unemployment tax credits to employers in this state." [1998 c 233
§ 5.]
Effective date—1998 c 233: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[March 30, 1998]." [1998 c 233 § 6.]
Severability—Conflict with federal requirements—Effective date—
1995 c 296: See notes following RCW 50.04.320.
Purpose—Statutory references—Severability—1990 c 33: See
RCW 28A.900.100 through 28A.900.102.
Effective date—Applicability—1984 c 140: "This act is necessary for
the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take
effect immediately [March 7, 1984]. This act shall apply to weeks of unemployment beginning on or after April 1, 1984." [1984 c 140 § 3.]
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
Effective dates—Severability—1981 c 35: See notes following RCW
50.22.030.
Severability—Effective dates—1980 c 74: See notes following RCW
50.04.323.
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
Effective date—1975 1st ex.s. c 228: See note following RCW
50.04.355.
Effective dates—1973 c 73: See note following RCW 50.04.030.
(2004 Ed.)
Special Coverage Provisions
50.44.053
50.44.053 "Reasonable assurance" defined—Presumption, employees of educational institutions. (1) The
term "reasonable assurance," as used in RCW 50.44.050,
means a written, verbal, or implied agreement that the
employee will perform services in the same capacity during
the ensuing academic year or term as in the first academic
year or term. A person shall not be deemed to be performing
services "in the same capacity" unless those services are rendered under the same terms or conditions of employment in
the ensuing year as in the first academic year or term.
(2) An individual who is tenured or holds tenure track
status is considered to have reasonable assurance, unless
advised otherwise by the college. For the purposes of this
section, tenure track status means a probationary faculty
employee having an opportunity to be reviewed for tenure.
(3) In the case of community and technical colleges
assigned the standard industrial classification code 8222 or
the North American industry classification system code
611210 for services performed in a principal administrative,
research, or instructional capacity, a person is presumed not
to have reasonable assurance under an offer that is conditioned on enrollment, funding, or program changes. It is the
college's burden to provide sufficient documentation to overcome this presumption. Reasonable assurance must be determined on a case-by-case basis by the total weight of evidence
rather than the existence of any one factor. Primary weight
must be given to the contingent nature of an offer of employment based on enrollment, funding, and program changes.
[2001 c 99 § 2; 1998 c 233 § 3; 1995 c 296 § 3; 1985 ex.s. c
5 § 9.]
Conflict with federal requirements—2001 c 99: "If any part of this
act is found to be in conflict with federal requirements that are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this
act. Rules adopted under this act must meet federal requirements that are a
necessary condition to the receipt of federal funds by the state or the granting
of federal unemployment tax credits to employers in this state." [2001 c 99
§ 4.]
Severability—2001 c 99: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [2001 c 99 § 5.]
Applicability—2001 c 99: "This act applies to weeks that begin after
March 31, 2001." [2001 c 99 § 6.]
Effective date—2001 c 99: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[April 19, 2001]." [2001 c 99 § 7.]
Intent—Findings—Conflict with federal requirements—Effective
date—1998 c 233: See notes following RCW 50.44.050.
Severability—Conflict with federal requirements—Effective date—
1995 c 296: See notes following RCW 50.04.320.
Conflict with federal requirements—Severability—1985 ex.s. c 5:
See notes following RCW 50.62.010.
50.44.055
50.44.055 Finding—Intent—Reasonable assurance,
application to employees of educational institutions. The
legislature finds the interests of the state and its citizens are
best served by a strong community and technical college system. As described by their establishing legislation, these
two-year institutions are an independent, unique, and vital
section of our state's higher education system, separate from
(2004 Ed.)
50.44.060
both the common school system and other institutions of
higher education. Paramount to that system's success is the
attraction and retention of qualified instructors. In order to
attract and retain instructors, those who are subject to uncertainties of employment must be provided assurance their economic needs are addressed. Over time, a change in hiring patterns has occurred, and for the last decade a substantial portion of community and technical college faculty are hired on
a contingent, as needed, basis. That contingent nature distinguishes them from the more stable, majority employment
found in the common school system and in the other institutions of higher education. Contingent assurances of future
employment are often speculative and do not rise to the level
of other forms of assurance. As such, assurances conditioned
on forecast enrollment, funding, or program decisions are
typically not reasonable assurances of employment.
It is the intent of the legislature that reasonable assurance
continue to apply to all employees of educational institutions
as required by federal provisions and RCW 50.44.080. [2001
c 99 § 1.]
Conflict with federal requirements—Severability—Applicability—
Effective date—2001 c 99: See notes following RCW 50.44.053.
50.44.060
50.44.060 Nonprofit organization employees—
Financing of benefits—Election of payments in lieu of
contributions. Benefits paid to employees of "nonprofit
organizations" shall be financed in accordance with the provisions of this section. For the purpose of this section and
RCW 50.44.070, the term "nonprofit organization" is limited
to those organizations described in RCW 50.44.010, and joint
accounts composed exclusively of such organizations.
(1) Any nonprofit organization which is, or becomes
subject to this title on or after January 1, 1972 shall pay contributions under the provisions of RCW 50.24.010 and chapter 50.29 RCW, unless it elects, in accordance with this subsection, to pay to the commissioner for the unemployment
compensation fund an amount equal to the full amount of regular and additional benefits and one-half of the amount of
extended benefits paid to individuals for weeks of unemployment that are based upon wages paid or payable during the
effective period of such election to the extent that such payments are attributable to service in the employ of such nonprofit organization.
(a) Any nonprofit organization which becomes subject to
this title after January 1, 1972 may elect to become liable for
payments in lieu of contributions for a period of not less than
twelve months beginning with the date on which such subjectivity begins by filing a written notice of its election with the
commissioner not later than thirty days immediately following the date of the determination of such subjectivity.
(b) Any nonprofit organization which makes an election
in accordance with paragraph (a) of this subsection will continue to be liable for payments in lieu of contributions until it
files with the commissioner a written notice terminating its
election not later than thirty days prior to the beginning of the
taxable year for which such termination shall first be effective.
(c) Any nonprofit organization which has been paying
contributions under this title for a period subsequent to January 1, 1972 may change to a reimbursable basis by filing with
the commissioner not later than thirty days prior to the begin[Title 50 RCW—page 77]
50.44.060
Title 50 RCW: Unemployment Compensation
ning of any taxable year a written notice of election to
become liable for payments in lieu of contributions. Such
election shall not be terminable by the organization for that
and the next year.
(d) The commissioner may for good cause extend the
period within which a notice of election, or a notice of termination, must be filed and may permit an election to be retroactive but not any earlier than with respect to benefits paid
after December 31, 1969.
(e) The commissioner, in accordance with such regulations as the commissioner may prescribe, shall notify each
nonprofit organization of any determination which the commissioner may make of its status as an employer and of the
effective date of any election which it makes and of any termination of such election. Any nonprofit organization subject
to such determination and dissatisfied with such determination may file a request for review and redetermination with
the commissioner within thirty days of the mailing of the
determination to the organization. Should such request for
review and redetermination be denied, the organization may,
within ten days of the mailing of such notice of denial, file
with the appeal tribunal a petition for hearing which shall be
heard in the same manner as a petition for denial of refund.
The appellate procedure prescribed by this title for further
appeal shall apply to all denials of review and redetermination under this paragraph.
(2) Payments in lieu of contributions shall be made in
accordance with the provisions of this section including
either paragraph (a) or (b) of this subsection.
(a) At the end of each calendar quarter, the commissioner
shall bill each nonprofit organization or group of such organizations which has elected to make payments in lieu of contributions for an amount equal to the full amount of regular
and additional benefits plus one-half of the amount of
extended benefits paid during such quarter that is attributable
to service in the employ of such organization.
(b)(i) Each nonprofit organization that has elected payments in lieu of contributions may request permission to
make such payments as provided in this paragraph. Such
method of payment shall become effective upon approval by
the commissioner.
(ii) At the end of each calendar quarter, or at the end of
such other period as determined by the commissioner, the
commissioner shall bill each nonprofit organization for an
amount representing one of the following:
(A) The percentage of its total payroll for the immediately preceding calendar year as the commissioner shall
determine. Such determination shall be based each year on
the average benefit costs attributable to service in the employ
of nonprofit organizations during the preceding calendar
year.
(B) For any organization which did not pay wages
throughout the four calendar quarters of the preceding calendar year, such percentage of its payroll during such year as
the commissioner shall determine.
(iii) At the end of each taxable year, the commissioner
may modify the quarterly percentage of payroll thereafter
payable by the nonprofit organization in order to minimize
excess or insufficient payments.
(iv) At the end of each taxable year, the commissioner
shall determine whether the total of payments for such year
[Title 50 RCW—page 78]
made by a nonprofit organization is less than, or in excess of,
the total amount of regular and additional benefits plus onehalf of the amount of extended benefits paid to individuals
during such taxable year based on wages attributable to service in the employ of such organization. Each nonprofit organization whose total payments for such year are less than the
amount so determined shall be liable for payment of the
unpaid balance to the fund in accordance with paragraph (c).
If the total payments exceed the amount so determined for the
taxable year, all of the excess payments will be retained in the
fund as part of the payments which may be required for the
next taxable year, or a part of the excess may, at the discretion
of the commissioner, be refunded from the fund or retained in
the fund as part of the payments which may be required for
the next taxable year.
(c) Payment of any bill rendered under paragraph (a) or
(b) shall be made not later than thirty days after such bill was
mailed to the last known address of the nonprofit organization or was otherwise delivered to it, and if not paid within
such thirty days, the reimbursement payments itemized in the
bill shall be deemed to be delinquent and the whole or part
thereof remaining unpaid shall bear interest and penalties
from and after the end of such thirty days at the rate and in the
manner set forth in RCW 50.12.220 and 50.24.040.
(d) Payments made by any nonprofit organization under
the provisions of this section shall not be deducted or deductible, in whole or in part, from the remuneration of individuals
in the employ of the organization. Any deduction in violation
of the provisions of this paragraph shall be unlawful.
(3) Each employer that is liable for payments in lieu of
contributions shall pay to the commissioner for the fund the
total amount of regular and additional benefits plus the
amount of one-half of extended benefits paid that are attributable to service in the employ of such employer. If benefits
paid to an individual are based on wages paid by more than
one employer and one or more of such employers are liable
for payments in lieu of contributions, the amount payable to
the fund by each employer that is liable for such payments
shall be determined in accordance with the provisions of
paragraphs (a) and (b) of this subsection.
(a) If benefits paid to an individual are based on wages
paid by one or more employers that are liable for payments in
lieu of contributions and on wages paid by one or more
employers who are liable for contributions, the amount of
benefits payable by each employer that is liable for payments
in lieu of contributions shall be an amount which bears the
same ratio to the total benefits paid to the individual as the
total base-period wages paid to the individual by such
employer bear to the total base-period wages paid to the individual by all of his base-period employers.
(b) If benefits paid to an individual are based on wages
paid by two or more employers that are liable for payments in
lieu of contributions, the amount of benefits payable by each
such employer shall be an amount which bears the same ratio
to the total benefits paid to the individual as the total baseperiod wages paid to the individual by such employer bear to
the total base-period wages paid to the individual by all of his
base-period employers. [1990 c 245 § 9; 1983 1st ex.s. c 23
§ 24; 1977 ex.s. c 292 § 19; 1971 c 3 § 23.]
Conflict with federal requirements—Effective dates—1990 c 245:
See notes following RCW 50.04.030.
(2004 Ed.)
Special Coverage Provisions
Conflict with federal requirements—Effective dates—Construction—1983 1st ex.s. c 23: See notes following RCW 50.04.073.
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
50.44.070
50.44.070 Election to make payments in lieu of contributions—Bond or deposit. In the discretion of the commissioner, any nonprofit organization that elects to become
liable for payments in lieu of contributions shall be required
within thirty days after the effective date of its election, to
execute and file with the commissioner a surety bond
approved by the commissioner or it may elect instead to
deposit with the commissioner money or securities. The
amount of such bond or deposit shall be determined in accordance with the provisions of this section.
(1) The amount of the bond or deposit required by this
subsection shall be an amount deemed by the commissioner
to be sufficient to cover any reimbursement payments which
may be required from the employer attributable to employment during any year for which the election is in effect but in
no event shall such amount be in excess of the amount which
said employer would pay for such year if he were subject to
the contribution provisions of this title. The determination
made pursuant to this subsection shall be based on payroll
information, employment experience, and such other factors
as the commissioner deems pertinent.
(2) Any bond deposited under this section shall be in
force for a period of not less than two taxable years and shall
be renewed with the approval of the commissioner, at such
times as the commissioner may prescribe, but not less frequently than at two-year intervals as long as the organization
continues to be liable for payments in lieu of contributions.
The commissioner shall require adjustments to be made in a
previously filed bond as he deems appropriate. If the bond is
to be increased, the adjusted bond shall be filed by the organization within thirty days of the date notice of the required
adjustment was mailed or otherwise delivered to it. Failure by
any organization covered by such bond to pay the full amount
of payments in lieu of contributions when due, together with
any applicable interest and penalties provided for in this title,
shall render the surety liable on said bond to the extent of the
bond, as though the surety was such organization.
(3) Any deposit of money or securities in accordance
with this section shall be retained by the commissioner in an
escrow account until liability under the election is terminated,
at which time it shall be returned to the organization, less any
deductions as hereinafter provided. The commissioner may
deduct from the money deposited under this section by a nonprofit organization or sell the securities it has so deposited to
the extent necessary to satisfy any due and unpaid payments
in lieu of contributions and any applicable interest and penalties provided for in this act. The commissioner shall require
the organization within thirty days following any deduction
from a money deposit or sale of deposited securities under the
provisions of this subsection to deposit sufficient additional
money or securities to make whole the organization's deposit
at the prior level. Any cash remaining from the sale of such
securities shall be a part of the organization's escrow account.
The commissioner may, at any time review the adequacy of
the deposit made by any organization. If, as a result of such
review, he determines that an adjustment is necessary he shall
(2004 Ed.)
50.44.090
require the organization to make an additional deposit within
thirty days of written notice of his determination or shall
return to it such portion of the deposit as he no longer considers necessary, whichever action is appropriate. Disposition of
income from securities held in escrow shall be governed by
the applicable provisions of the state law.
(4) If any nonprofit organization fails to file a bond or
make a deposit, or to file a bond in an increased amount or to
increase or make whole the amount of a previously made
deposit, as provided under this section, the commissioner
may terminate such organization's election to make payments
in lieu of contributions and such termination shall continue
for not less than the four-consecutive-calendar-quarter period
beginning with the quarter in which termination becomes
effective: PROVIDED, That the commissioner may extend
for good cause the applicable filing, deposit or adjustment
period by not more than thirty days. [1973 c 73 § 11; 1971 c
3 § 24.]
Effective dates—1973 c 73: See note following RCW 50.04.030.
50.44.080
50.44.080 Construction—Compliance with federal
unemployment tax act, department of labor guidelines. In
view of the importance of compliance of this chapter with the
federal unemployment tax act, any ambiguities contained
herein should be resolved in a manner consistent with the
provisions of that act. Department of labor guidelines implementing chapter 99, Laws of 2001 should be referred to when
interpreting the provisions of this chapter.
Language in this chapter concerning the extension of
coverage to employers entitled to make payments in lieu of
contributions should, in a manner consistent with the foregoing paragraph, be construed so as to have a minimum financial impact on the employers subject to the experience rating
provisions of this title. [2001 c 99 § 3; 1971 c 3 § 25.]
Conflict with federal requirements—Severability—Applicability—
Effective date—2001 c 99: See notes following RCW 50.44.053.
50.44.090
50.44.090 Construction—Mandatory coverage of
employees of political subdivision under 1977 ex.s. c 292.
(1) The provisions of chapter 292, Laws of 1977 ex. sess.
mandating coverage of employees of political subdivisions
have been enacted to comply with the provisions of Public
Law 94-566. Therefore, as provided in subsection (2), this
mandatory feature shall be contingent on the existence of
valid and constitutional federal law requiring the Secretary of
Labor to refuse to certify as approved the employment security laws of this state if such laws did not continue such mandatory coverage.
(2) In the event the mandatory coverage feature for political subdivisions ceases to be necessary for compliance with
valid and constitutional federal law, then the mandatory feature of chapter 292, Laws of 1977 ex. sess. shall cease to be
effective as of the end of the next quarter following the quarter in which the mandatory feature contained in chapter 292,
Laws of 1977 ex. sess. is not necessary for such compliance.
(3) In the event mandatory coverage ceases to be effective pursuant to subsection (2), then the sections, or subsections as the case may be, of chapter 292, Laws of 1977 ex.
sess. shall to the extent that they apply to coverage of
employees of political subdivisions be deemed nullified and
[Title 50 RCW—page 79]
Chapter 50.50
Title 50 RCW: Unemployment Compensation
the language of the sections being amended shall be deemed
reinstated as the laws of this state.
(4) Benefits paid based on the services covered during
the effective life of the mandatory coverage feature shall be
financed as follows:
(a) If the political subdivision was financing payment of
benefits on a reimbursable basis, benefits attributable to
employment with the political subdivision shall be assessed
to and paid by the political subdivision;
(b) If the political subdivision is a county, city, or town
which elected financing pursuant to RCW 50.44.035, such
political subdivision will pay "the local government tax" for
all earnings by employees through the end of the calendar
quarter in which the mandatory coverage is no longer effective pursuant to subsection (2);
(c) If the political subdivision was financing benefits by
the contribution method it will pay contributions on wages
earned by its employees through the end of the calendar quarter in which mandatory coverage is no longer effective pursuant to subsection (2). [1977 ex.s. c 292 § 23.]
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
Chapter 50.50
Chapter 50.50 RCW
INDIAN TRIBES
Sections
50.50.010
50.50.020
50.50.030
50.50.040
50.50.050
50.50.060
50.50.070
50.50.900
50.50.901
50.50.902
50.50.903
Employment.
Benefits—Generally.
Contributions—Election of payments in lieu of contributions.
Option to make payments in lieu of contributions—Revocation—Reinstatement—Notices.
Notices—Contents.
Extended benefits—Financing by Indian tribe.
Indian tribes subject to same terms and conditions as other
employers.
Conflict with federal requirements—2001 1st sp.s. c 11.
Severability—2001 1st sp.s. c 11.
Effective date—2001 1st sp.s. c 11.
Retroactive application—2001 1st sp.s. c 11.
50.50.010
50.50.010 Employment. The term "employment"
includes service performed in the employ of an Indian tribe,
as defined in section 3306(u) of the federal unemployment
tax act, provided such service is excluded from "employment" as defined in the federal unemployment tax act solely
by reason of section 3306(c)(7), the federal unemployment
tax act, and is not otherwise excluded from "employment"
under this title. For purposes of this section, the exclusions
from employment in RCW 50.44.040, except RCW
50.44.040(12) addressing nongovernmental preschools, are
applicable to services performed in the employ of an Indian
tribe. [2001 1st sp.s. c 11 § 3.]
50.50.020
50.50.020 Benefits—Generally. Benefits based on service in employment defined in this chapter are payable in the
same amount, on the same terms, and subject to the same
conditions as benefits payable on the basis of other service
under this title. [2001 1st sp.s. c 11 § 4.]
50.50.030
50.50.030 Contributions—Election of payments in
lieu of contributions. (1) Indian tribes or tribal units, including subdivisions, subsidiaries, or business enterprises wholly
[Title 50 RCW—page 80]
owned by such Indian tribes, subject to this title shall pay
contributions under the same terms and conditions as all
other subject employers, unless they elect to pay into the
unemployment compensation fund amounts equal to the
amount of benefits attributable to service in the employ of the
Indian tribe.
(2) Indian tribes electing to make payments in lieu of
contributions shall make such election in the same manner
and under the same conditions as provided in RCW
50.44.030 pertaining to other units of government subject to
this title. Indian tribes shall determine if reimbursement for
benefits paid are to be elected by the tribe as a whole, by individual tribal units, or by combinations of tribal units.
(3) Indian tribes or tribal units shall be billed for the full
amount of benefits attributable to service in the employ of the
Indian tribe or tribal unit on the same schedule as other
employing units that have elected to make payments in lieu of
contributions.
(4) At the discretion of the commissioner and on the
same basis as other employers with the same election option,
any Indian tribe or tribal unit that elects to become liable for
payments in lieu of contributions is required, within thirty
days after the effective date of its election, to: (a) Execute
and file with the commissioner a surety bond approved by the
commissioner; or (b) deposit with the commissioner money
or securities in an amount determined by the commissioner.
[2001 1st sp.s. c 11 § 5.]
50.50.040 Option to make payments in lieu of contributions—Revocation—Reinstatement—Notices. (1)(a)
The commissioner shall revoke the option for an Indian tribe
or tribal unit to make payments in lieu of contributions as
described in RCW 50.50.030 if the Indian tribe or tribal unit:
(i) Did not make payments, including assessments of interest
and penalties, required under this chapter within ninety days
of receipt of statement; or (ii) entered into an approved
agency deferred payment contract, and was not in compliance
with the contract on the cutoff date, as authorized in chapter
50.29 RCW. The revocation shall begin on January 1 of the
first calendar year after the Indian tribe or tribal unit meets
these conditions, and shall continue until the option is reinstated as described in (b) of this subsection.
(b) The commissioner shall reinstate the option if, as of
the cutoff date, an Indian tribe or tribal unit whose option was
revoked as described in (a) of this subsection: (i) Paid contributions owed in the current calendar year when due; and (ii)
made required payments, including assessments of interest
and penalties, for any preceding calendar years. The reinstatement shall begin on January 1 of the first calendar year
after the Indian tribe or tribal unit satisfies these conditions.
(2)(a) Services performed for an Indian tribe or tribal
unit are not services in "employment" for purposes of RCW
50.04.265 and 50.50.010 if:
(i) The Indian tribe or tribal unit elected to make payments in lieu of contributions, had the option revoked, and
has not met the conditions for reinstatement of the option;
and
(ii) The Indian tribe or tribal unit either: (A) Did not
make required payments, including assessments of interest
and penalties, within one hundred eighty days of receipt of
statement; or (B) entered into an approved agency deferred
50.50.040
(2004 Ed.)
Shared Work Compensation Plans—Benefits
payment contract, and was not in compliance with the contract on the last day of the current calendar quarter.
This revocation of coverage shall begin on the first day
of the first calendar quarter after the Indian tribe or tribal unit
meets these conditions, and shall continue until coverage is
reinstated as described in (c) of this subsection.
(b) Services performed for an Indian tribe or tribal unit
are not services in "employment" for purposes of RCW
50.04.265 and 50.50.010 if:
(i) The Indian tribe or tribal unit is a contribution-paying
employer; and
(ii) The Indian tribe or tribal unit either: (A) Did not
make required payments, including assessments of interest
and penalties, within one hundred eighty days of receipt of
statement; or (B) entered into an approved agency deferred
payment contract, and was not in compliance with the contract on the last day of the current calendar quarter.
This revocation of coverage shall begin on the first day
of the first calendar quarter after the Indian tribe or tribal unit
meets these conditions, and shall continue until coverage is
reinstated as described in (c) of this subsection.
(c) The commissioner may reinstate coverage if the
Indian tribe or tribal unit has made required payments,
including assessments of interest and penalties. This reinstatement of coverage may begin on the first day of the first
calendar quarter after these payments are made.
(3)(a) The commissioner shall immediately notify the
United States internal revenue service and the United States
department of labor if an Indian tribe or tribal unit does not
make required payments, including assessments of interest
and penalties, within ninety days of receipt of statement.
(b) The commissioner shall immediately notify the
United States internal revenue service and the United States
department of labor of any revocation or reinstatement of the
option to make payments in lieu of contributions under subsection (1) of this section or any revocation or reinstatement
of coverage under subsection (2) of this section. [2001 1st
sp.s. c 11 § 6.]
addressed in this chapter, Indian tribes or their tribal units are
subject to the same terms and conditions as are other employers subject to contributions under RCW 50.29.020 or other
units of government under RCW 50.44.030 that make payments in lieu of contributions. [2001 1st sp.s. c 11 § 9.]
50.50.900
50.50.900 Conflict with federal requirements—2001
1st sp.s. c 11. If any part of this act is found to be in conflict
with federal requirements that are a prescribed condition to
the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits,
the conflicting part of this act is inoperative solely to the
extent of the conflict, and the finding or determination does
not affect the operation of the remainder of this act. Rules
adopted under this act must meet federal requirements that
are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to
employers in this state. [2001 1st sp.s. c 11 § 10.]
50.50.901
50.50.901 Severability—2001 1st sp.s. c 11. If any
provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances
is not affected. [2001 1st sp.s. c 11 § 11.]
50.50.902
50.50.902 Effective date—2001 1st sp.s. c 11. This act
is necessary for the immediate preservation of the public
peace, health, or safety, or support of the state government
and its existing public institutions, and takes effect immediately [June 11, 2001]. [2001 1st sp.s. c 11 § 12.]
50.50.903
50.50.903 Retroactive application—2001 1st sp.s. c
11. This act applies retroactively to services performed on or
after December 21, 2000. Indian tribes or tribal units may
elect to make payments in lieu of contributions effective
December 21, 2000, or a subsequent date. [2001 1st sp.s. c
11 § 13.]
Chapter 50.60
50.50.050
50.50.050 Notices—Contents. Notices of payment and
reporting delinquency to Indian tribes or their tribal units
must include information that failure to make full payment
within the prescribed time frames: (1) Causes the Indian tribe
to be liable for taxes under the federal unemployment tax act;
(2) causes the Indian tribe to lose the option to make payments in lieu of contributions; and (3) causes the Indian tribe
to be excepted from the definition of "employing unit," as
provided in RCW 50.04.090, and services in the employ of
the Indian tribe, as provided in RCW 50.04.265 and
50.50.010, to be excepted from "employment." [2001 1st
sp.s. c 11 § 7.]
50.50.060
50.50.060 Extended benefits—Financing by Indian
tribe. Extended benefits paid that are attributable to service
in the employ of an Indian tribe and not reimbursed by the
federal government must be financed in their entirety by such
Indian tribe. [2001 1st sp.s. c 11 § 8.]
50.60.010
Chapter 50.60 RCW
SHARED WORK COMPENSATION
PLANS—BENEFITS
Sections
50.60.010
50.60.020
50.60.030
50.60.040
50.60.050
50.60.060
50.60.070
50.60.080
50.60.090
50.60.100
50.60.110
50.60.120
50.60.900
50.60.901
50.60.902
Legislative intent.
Definitions.
Compensation plan—Criteria for approval.
Compensation plan—Approval or rejection—Resubmission.
Approved plan—Misrepresentation—Penalties.
Approved plan—Effective date—Expiration.
Approved plan—Revocation—Review of plans.
Approved plan—Modification.
Shared work benefits—Eligibility.
Benefits—Weekly amount—Maximum entitlement—
Claims—Conditions.
Benefits—Charge to employers' experience rating accounts.
Benefits—Exhaustee.
Title and rules to apply to shared work benefits—Conflict with
federal requirements.
Rules.
Effective date—1983 c 207.
50.60.010
50.50.070
50.50.070 Indian tribes subject to same terms and
conditions as other employers. Unless specifically
(2004 Ed.)
50.60.010 Legislative intent. In order to provide an
economic climate conducive to the retention of skilled workers in industries adversely affected by general economic
[Title 50 RCW—page 81]
50.60.020
Title 50 RCW: Unemployment Compensation
downturns and to supplement depressed buying power of
employees affected by such downturns, the legislature finds
that the public interest would be served by the enactment of
laws providing greater flexibility in the payment of unemployment compensation benefits in situations where qualified
employers elect to retain employees at reduced hours rather
than instituting layoffs. [1983 c 207 § 1.]
50.60.020
50.60.020 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Affected unit" means a specified plant, department,
shift, or other definable unit consisting of one or more
employees, to which an approved shared work compensation
plan applies.
(2) "Fringe benefits" include health insurance, retirement
benefits under benefit pension plans as defined in section
3(35) of the employee retirement income security act of
1974, paid vacation and holidays, and sick leave, which are
incidents of employment in addition to cash remuneration.
(3) "Shared work benefits" means the benefits payable to
employees in an affected unit under an approved shared work
compensation plan as distinguished from the benefits otherwise payable under this title.
(4) "Shared work compensation plan" means a plan of an
employer, or of an employers' association, under which there
is a reduction in the number of hours worked by employees
rather than temporary layoffs.
(5) "Shared work employer" means an employer, one or
more of whose employees are covered by a shared work compensation plan.
(6) "Usual weekly hours of work" means the normal
number of hours of work for full-time employees in the
affected unit when that unit is operating on a full-time basis,
not to exceed forty hours and not including overtime.
(7) "Unemployment compensation" means the benefits
payable under this title other than shared work benefits and
includes any amounts payable pursuant to an agreement
under federal law providing for compensation, assistance, or
allowances with respect to unemployment.
(8) "Employers' association" means an association which
is a party to a collective bargaining agreement under which
there is a shared work compensation plan. [1983 c 207 § 2.]
50.60.030
50.60.030 Compensation plan—Criteria for
approval. An employer or employers' association wishing to
participate in a shared work compensation program shall submit a written and signed shared work compensation plan to
the commissioner for approval. The commissioner shall
approve a shared work compensation plan only if the following criteria are met:
(1) The plan identifies the affected units to which it
applies;
(2) An employee in an affected unit are identified by
name, social security number, and by any other information
required by the commissioner;
(3) The usual weekly hours of work for an employee in
an affected unit are reduced by not less than ten percent and
not more than fifty percent;
[Title 50 RCW—page 82]
(4) Fringe benefits will continue to be provided on the
same basis as before the reduction in work hours. In no event
shall the level of health benefits be reduced due to a reduction
in hours;
(5) The plan certifies that the aggregate reduction in
work hours is in lieu of temporary layoffs which would have
affected at least ten percent of the employees in the affected
units to which the plan applies and which would have
resulted in an equivalent reduction in work hours;
(6) The plan applies to at least ten percent of the employees in the affected unit;
(7) The plan is approved in writing by the collective bargaining agent for each collective bargaining agreement covering any employee in the affected unit;
(8) The plan will not subsidize seasonal employers during the off season nor subsidize employers who have traditionally used part-time employees; and
(9) The employer agrees to furnish reports necessary for
the proper administration of the plan and to permit access by
the commissioner to all records necessary to verify the plan
before approval and after approval to evaluate the application
of the plan.
In addition to subsections (1) through (9) of this section,
the commissioner shall take into account any other factors
which may be pertinent. [1985 c 43 § 1; 1983 c 207 § 3.]
Conflict with federal requirements—1985 c 43: "If any part of this
act is found to be in conflict with federal requirements which are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1985 c 43 § 2.]
Severability—1985 c 43: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1985 c 43 § 3.]
50.60.040
50.60.040 Compensation plan—Approval or rejection—Resubmission. The commissioner shall approve or
reject a shared work compensation plan in writing within fifteen days of its receipt. The reasons for the rejection shall be
final and nonappealable, but the rejection shall not prevent an
employer from submitting another plan for approval not earlier than fifteen days after the date of a previous written rejection. [1983 c 207 § 4.]
50.60.050
50.60.050 Approved plan—Misrepresentation—Penalties. If an approved plan or any representation for implementation of the plan is intentionally and substantially misleading or false, any individual who participated in any such
misrepresentation shall be subject to criminal prosecution as
well as personal liability for any amount of benefits deemed
by the commissioner to have been improperly paid from the
fund as a result thereof. This provision for personal liability is
in addition to any remedy against individual claimants for
collection of overpayment of benefits if such claimants participated in or were otherwise at fault in the overpayment.
[1983 c 207 § 5.]
(2004 Ed.)
Shared Work Compensation Plans—Benefits
50.60.060
50.60.060 Approved plan—Effective date—Expiration. A shared work compensation plan shall be effective on
the date specified in the plan or on the first day of the second
calendar week after the date of the commissioner's approval,
whichever is later. The plan shall expire at the end of the
twelfth full calendar month after its effective date, or on the
date specified in the plan if that date is earlier, unless the plan
is revoked before that date by the commissioner. If a plan is
revoked by the commissioner, it shall terminate on the date
specified in the commissioner's order of revocation. [1983 c
207 § 6.]
50.60.070
50.60.070 Approved plan—Revocation—Review of
plans. The commissioner may revoke approval of a shared
work compensation plan for good cause. The revocation
order shall be in writing and shall specify the date the revocation is effective and the reasons for the revocation. Good
cause for revocation shall include failure to comply with the
assurances given in the plan, unreasonable revision of productivity standards for the affected unit, conduct or occurrences tending to defeat the intent and effective operation of
the plan, and violation of the criteria on which approval of the
plan was based.
Such action may be initiated at any time by the commissioner on his or her own motion, on the motion of any of the
affected unit employees, or on the motion of the appropriate
collective bargaining agents. The commissioner shall review
each plan at least once within the twelve month period the
plan is in effect to assure that it continues to meet the requirements of this chapter. [1983 c 207 § 7.]
50.60.080
50.60.080 Approved plan—Modification. An
approved shared work compensation plan in effect may be
modified with the approval of the commissioner. If the hours
of work are increased or decreased beyond the level in the
original plan, or any other condition is changed, the employer
shall promptly notify the commissioner. If the changes meet
the requirements for approval of a plan, the commissioner
shall approve the modifications. This approval shall not
change the expiration date of the original plan. If the modifications do not meet the requirements for approval, the commissioner shall revoke the plan as specified in RCW
50.60.060. [1983 c 207 § 8.]
50.60.090
50.60.090 Shared work benefits—Eligibility. An
individual is eligible to receive shared work benefits with
respect to any week only if, in addition to meeting the conditions of eligibility for other benefits under this title, the commissioner finds that:
(1) The individual was employed during that week as a
member of an affected unit under an approved shared work
compensation plan which was in effect for that week;
(2) The individual was able to work and was available
for additional hours of work and for full-time work with the
shared work employer; and
(3) Notwithstanding any other provision of this chapter,
an individual is deemed to have been unemployed in any
week for which remuneration is payable to him or her as an
employee in an affected unit for less than his or her normal
weekly hours of work as specified under the approved shared
(2004 Ed.)
50.60.110
work compensation plan in effect for that week. [1983 c 207
§ 9.]
50.60.100
50.60.100 Benefits—Weekly amount—Maximum
entitlement—Claims—Conditions. (1) The shared work
weekly benefit amount shall be the product of the regular
weekly unemployment compensation benefit amount multiplied by the percentage of reduction in the individual's usual
weekly hours of work;
(2) No individual is eligible in any benefit year for more
than the maximum entitlement established for benefits under
this title, including benefits under this chapter, nor may an
individual be paid shared work benefits for more than a total
of twenty-six weeks in any twelve-month period under a
shared work compensation plan;
(3) The shared work benefits paid an individual shall be
deducted from the total benefit amount established for that
individual's benefit year;
(4) Claims for shared work benefits shall be filed in the
same manner as claims for other benefits under this title or as
prescribed by the commissioner by rule;
(5) Provisions otherwise applicable to unemployment
compensation claimants under this title apply to shared work
claimants to the extent that they are not inconsistent with this
chapter;
(6)(a) If an individual works in the same week for an
employer other than the shared work employer and his or her
combined hours of work for both employers are equal to or
greater than the usual weekly hours of work with the shared
work employer, the individual shall not be entitled to benefits
under this chapter or title;
(b) If an individual works in the same week for both the
shared work employer and another employer and his or her
combined hours of work for both employers are less than his
or her usual weekly hours of work, the benefit amount payable for that week shall be the weekly unemployment compensation benefit amount reduced by the same percentage
that the combined hours are of the usual weekly hours of
work. A week for which benefits are paid under this subsection shall count as a week of shared work benefits;
(7) An individual who does not work during a week for
the shared work employer, and is otherwise eligible, shall be
paid his or her full weekly unemployment compensation benefit amount. Such a week shall not be counted as a week for
which shared work benefits were received;
(8) An individual who does not work for the shared work
employer during a week but works for another employer, and
is otherwise eligible, shall be paid benefits for that week
under the partial unemployment compensation provisions of
this title. Such a week shall not be counted as a week for
which shared work benefits were received. [1983 c 207 §
10.]
50.60.110
50.60.110 Benefits—Charge to employers' experience rating accounts. Shared work benefits shall be charged
to employers' experience rating accounts in the same manner
as other benefits under this title are charged. Employers liable
for payments in lieu of contributions shall have shared work
benefits attributed to their accounts in the same manner as
[Title 50 RCW—page 83]
50.60.120
Title 50 RCW: Unemployment Compensation
other benefits under this title are attributed. [1983 c 207 §
11.]
50.60.120 Benefits—Exhaustee. An individual who
has received all of the shared work benefits, or all of the combined unemployment compensation and shared work benefits, available in a benefit year shall be considered an
exhaustee for purposes of the extended benefits program
under chapter 50.22 RCW, and, if otherwise eligible under
that chapter, shall be eligible to receive extended benefits.
[1983 c 207 § 12.]
50.60.120
50.60.900 Title and rules to apply to shared work
benefits—Conflict with federal requirements. Unless
inconsistent with or otherwise provided by this section, this
title and rules adopted under this title apply to shared work
benefits. To the extent permitted by federal law, those rules
may make such distinctions and requirements as may be necessary with respect to unemployed individuals to carry out
the purposes of this chapter, including rules defining usual
hours, days, work week, wages, and the duration of plans
adopted under this chapter. To the extent that any portion of
this chapter may be inconsistent with the requirements of federal law relating to the payment of unemployment insurance
benefits, the conflicting provisions or interpretations of this
chapter shall be deemed inoperative, but only to the extent of
the conflict. If the commissioner determines that such a conflict exists, a statement to that effect shall be filed with the
governor's office for transmission to both houses of the legislature. [1983 c 207 § 13.]
50.60.900
50.60.901 Rules. The department shall adopt such rules
as are necessary to carry out the purposes of chapter 207,
Laws of 1983. [1998 c 245 § 101; 1983 c 207 § 14.]
50.60.901
50.60.902 Effective date—1983 c 207. This act is necessary for the immediate preservation of the public peace,
health, and safety, the support of the state government and its
existing public institutions, and shall take effect with the
weeks beginning after July 31, 1983. [1983 c 207 § 16.]
50.60.902
Chapter 50.62 RCW
SPECIAL EMPLOYMENT ASSISTANCE
Chapter 50.62
Sections
50.62.010
50.62.020
50.62.030
50.62.040
Legislative findings.
Definitions.
Job service program or activity.
Annual report—Wage and benefit history.
50.62.010 Legislative findings. The legislature finds
and declares that:
(1) The number of persons unemployed in the state is
significantly above the national average.
(2) Persons who are unemployed represent a skilled
resource to the economy and the quality of life for all persons
in the state.
(3) There are jobs available in the state that can be filled
by unemployed persons.
(4) A public labor exchange can appreciably expedite the
employment of unemployed job seekers and filling employer
50.62.010
[Title 50 RCW—page 84]
vacancies thereby contributing to the overall health of the
state and national economies.
(5) The Washington state job service of the employment
security department has provided a proven service of assisting persons to find employment for the past fifty years.
(6) Expediting the reemployment of unemployment
insurance claimants will reduce payment of claims drawn
from the state unemployment insurance trust fund.
(7) Increased emphasis on assisting in the reemployment
of claimants and monitoring claimants' work search efforts
will positively impact employer tax rates resulting from the
recently enacted experience rating legislation, chapter 205,
Laws of 1984.
(8) Special employment service efforts are necessary to
adequately serve agricultural employers who have unique
needs in the type of workers, recruitment efforts, and the
urgency of obtaining sufficient workers.
(9) Study and research of issues related to employment
and unemployment provides economic information vital to
the decision-making process.
(10) Older workers and the long-term unemployed experience greater difficulty finding new employment at wages
comparable to their prelayoff earnings relative to all unemployment insurance claimants who return to work.
(11) After a layoff, older unemployed workers and the
long-term unemployed workers fail to find unemployment
insurance-covered employment at a much higher rate than
other groups of unemployment insurance claimants.
The legislature finds it necessary and in the public interest to have a program of job service to assist persons drawing
unemployment insurance claims to find employment, to provide employment assistance to the agricultural industry, and
to conduct research into issues related to employment and
unemployment. [1987 c 284 § 1; 1987 c 171 § 1; 1985 ex.s.
c 5 § 1.]
Reviser's note: This section was amended by 1987 c 171 § 1 and by
1987 c 284 § 1, each without reference to the other. Both amendments are
incorporated in the publication of this section pursuant to RCW 1.12.025(2).
For rule of construction, see RCW 1.12.025(1).
Conflict with federal requirements—1987 c 171: "If any part of this
act is found to be in conflict with federal requirements which are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1987 c 171 § 7.]
Severability—1987 c 171: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1987 c 171 § 8.]
Conflict with federal requirements—1985 ex.s. c 5: "If any part of
this act shall be found to be in conflict with federal requirements which are a
prescribed condition to the allocation of federal funds to the state, such conflicting part of this act is hereby declared to be inoperative solely to the
extent of such conflict, and such finding or determination shall not affect the
operation of the remainder of this act." [1985 ex.s. c 5 § 16.]
Severability—1985 ex.s. c 5: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act
or the application of the provision to other persons or circumstances is not
affected." [1985 ex.s. c 5 § 17.]
(2004 Ed.)
Washington Service Corps
50.62.020
50.62.020 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Job service" means the employment assistance program of the employment security department;
(2) "Employment assistance" means services to unemployed persons focused on and measured by the obtaining of
employment;
(3) "Labor exchange" means those activities which
match labor supply and labor demand, including recruitment,
screening, and referral of qualified workers to employers;
(4) "Special account of the administrative contingency
fund" means that fund under RCW 50.24.014 established
within the administrative contingency fund of the employment security department which provides revenue for the
purposes of this chapter.
(5) "Continuous wage and benefit history" means an
information and research system utilizing a longitudinal data
base containing information on both employment and unemployment.
(6) "Long-term unemployed" means demographic
groups of unemployment insurance claimants identified by
the employment security department pursuant to RCW
50.62.040(1)(e) which have the highest percentages of persons who have drawn at least fifteen weeks of unemployment
insurance benefits or have the highest percentage of persons
who have exhausted their unemployment insurance benefits.
(7) "Older unemployed workers" means unemployment
insurance claimants who are at least fifty years of age. [1987
c 284 § 2; 1985 ex.s. c 5 § 2.]
Conflict with federal requirements—Severability—1985 ex.s. c 5:
See notes following RCW 50.62.010.
Conflict with federal requirements—Severability—1987 c 171: See
notes following RCW 50.62.010.
Conflict with federal requirements—Severability—1985 ex.s. c 5:
See notes following RCW 50.62.010.
50.62.040
50.62.040 Annual report—Wage and benefit history.
(1) Each year the employment security department may publish an annual report on the unemployed based on research
conducted on the continuous wage and benefit history and
other sources that identifies:
(a) The demographic groups of unemployment insurance
claimants that experience the greatest difficulty finding new
employment with wages comparable to their prelayoff earnings;
(b) The demographic groups of unemployment insurance
claimants that have the highest rates of failure to find unemployment insurance covered-employment after a layoff;
(c) The demographic, industry, and employment characteristics of the unemployment insurance claimant population
most closely associated with the exhaustion of an unemployment claim;
(d) The demographic, industry, and employment characteristics of those locked-out workers who are eligible for
unemployment compensation under RCW 50.20.090; and
(e) The demographic groups which are defined as the
"long-term unemployed" for purposes of this chapter. This
listing shall be updated each year.
(2) The employment security department shall continue
to fund the continuing wage and benefit history at a level necessary to produce the annual report described in subsection
(1) of this section. [1998 c 245 § 102; 1987 c 284 § 4.]
Chapter 50.65
50.62.030
50.62.030 Job service program or activity. Job service resources shall be used to assist with the reemployment
of unemployed workers using the most efficient and effective
means of service delivery. The job service program of the
employment security department may undertake any program or activity for which funds are available and which furthers the goals of this chapter. These programs and activities
shall include, but are not limited to:
(1) Giving older unemployed workers and the long-term
unemployed the highest priority for all services made available under this section. The employment security department
shall make the services provided under this chapter available
to the older unemployed workers and the long-term unemployed as soon as they register under the employment assistance program;
(2) Supplementing basic employment services, with special job search and claimant placement assistance designed to
assist unemployment insurance claimants to obtain employment;
(3) Providing employment services, such as recruitment,
screening, and referral of qualified workers, to agricultural
areas where these services have in the past contributed to positive economic conditions for the agricultural industry; and
(4) Providing otherwise unobtainable information and
analysis to the legislature and program managers about issues
related to employment and unemployment. [1995 c 135 § 4.
Prior: 1987 c 284 § 3; 1987 c 171 § 2; 1985 ex.s. c 5 § 3.]
Intent—1995 c 135: See note following RCW 29A.08.760.
(2004 Ed.)
Chapter 50.65
Chapter 50.65 RCW
WASHINGTON SERVICE CORPS
Sections
50.65.010
50.65.020
50.65.030
50.65.040
50.65.050
50.65.060
50.65.065
50.65.070
50.65.080
50.65.090
50.65.100
50.65.110
50.65.120
50.65.130
50.65.138
50.65.143
50.65.150
50.65.200
50.65.210
50.65.220
50.65.230
50.65.240
50.65.250
50.65.260
Legislative findings.
Definitions.
Washington service corps established—Commissioner's
duties.
Washington service corps—Criteria for enrollment.
Washington service corps—List of local youth employment
opportunities.
Washington service corps—Placement under work agreements.
Work agreements—Requirements.
Enrollees not to displace current workers.
Commissioner to seek assistance for Washington service
corps.
Authority for income-generating projects—Disposition of
income.
Work agreements—Nondiscrimination.
Enrollees—Training and subsistence allowance—Medical
insurance and medical aid—Notice of coverage.
Exemption of enrollees from unemployment compensation
coverage.
Federal and private sector funds and grants.
Use of funds for enrollees and projects in distressed areas—
Service corps.
Limitation on use of funds for administration—Service corps.
Washington service corps scholarship account—Created—
Use.
Washington serves—Findings—Declaration.
Washington serves—Definitions.
Washington serves—Program—Created—Procedure—Intent.
Washington serves—Applicants—Eligibility.
Washington serves—Disqualification for Washington service
corps participation.
Washington serves—Volunteers—Selection—Placement.
Washington serves—Volunteers—Support.
[Title 50 RCW—page 85]
50.65.010
50.65.270
50.65.280
50.65.290
50.65.300
50.65.310
50.65.320
50.65.330
50.65.901
50.65.902
50.65.903
50.65.904
50.65.905
50.65.906
50.65.907
50.65.908
Title 50 RCW: Unemployment Compensation
Washington serves—Volunteers—Medical benefits—Benefit
limits.
Washington serves—Displacement of current workers prohibited.
Washington serves—Volunteers—Unemployment compensation coverage limited.
Washington serves—Volunteers—Assistance to defer student
loan payments.
Washington serves—Volunteers—Subsequent development
of skills and experience—Recognition.
Washington serves—Service placement—Work agreements—Contracts—Rules for agencies—Financial support
for organizations.
Washington serves—Gifts, grants, endowments—Matching
funds.
Conflict with federal requirements—1983 1st ex.s. c 50.
Severability—1983 1st ex.s. c 50.
Conflict with federal requirements—1987 c 167.
Severability—1987 c 167.
Effective date—1987 c 167.
Conflict with federal requirements—1993 sp.s. c 7.
Short title—1993 sp.s. c 7.
Severability—1993 sp.s. c 7.
Washington conservation corps: Chapter 43.220 RCW.
50.65.010
50.65.010 Legislative findings. The legislature finds
that:
(1) The unemployment rate in the state of Washington is
the highest since the great depression, with a significantly
higher rate among Washington youth.
(2) The policy of the state is to conserve and protect its
natural and urban resources, scenic beauty, and historical and
cultural sites.
(3) It is in the public interest to target employment
projects to those activities which have the greatest benefit to
the local economy.
(4) There are many unemployed young adults without
hope or opportunities for entrance into the labor force who
are unable to afford higher education and who create a serious strain on tax revenues in community services.
(5) The severe cutbacks in community and human services funding leave many local community service agencies
without the resources to provide necessary services to those
in need.
(6) The talent and energy of Washington's unemployed
young adults are an untapped resource which should be challenged to meet the serious shortage in community services
and promote and conserve the valuable resources of the state.
Therefore, the legislature finds it necessary and in the
public interest to enact the Washington youth employment
and conservation act. As part of this chapter, the Washington
service corps is established as an operating program of the
employment security department. The legislature desires to
facilitate the potential of youth to obtain available job opportunities in both public and private agencies. [1987 c 167 § 1;
1983 1st ex.s. c 50 § 1.]
Reviser's note: Wherever the phrase "this act" occurred in RCW
50.65.010 through 50.65.130, it has been changed to "this chapter." "This
act" [1983 1st ex.s. c 50] consists of this chapter and three uncodified sections.
50.65.020
50.65.020 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Commissioner" means the commissioner of the
employment security department.
[Title 50 RCW—page 86]
(2) "Department" means the employment security
department.
(3) "Enrollees" means those persons who have completed enrollment forms, completed a work agreement, and
who have entered into the Washington service corps following the approval of the director of the supervising agency.
(4) "Corps" means the Washington service corps.
(5) "Work agreement" means the written agreement
between the department, the enrollee and the supervising
agency under this chapter for a period of up to eighteen
months.
(6) "Supervising agencies" means those private or public
agencies which develop and implement full-time service
projects in which enrollees agree to participate.
(7) "Matching funds" means funding that is provided to
the employment security department by agencies or individuals as financial support for a portion of the stipend or wage
and benefits paid to the enrollee.
(8) "Financial support" means any thing of value contributed by agencies or individuals to the department for a youth
employment project which is reasonably calculated to support directly the development and expansion of a particular
program under this chapter and which represents an addition
to any financial support previously or customarily provided
by the individual or agency. "Financial support" includes, but
is not limited to funds, equipment, facilities, and training.
(9) "Director" means the individual who shall serve as
the director of the exchange. [1987 c 167 § 2; 1983 1st ex.s.
c 50 § 2.]
50.65.030 Washington service corps established—
Commissioner's duties. The Washington service corps is
established within the employment security department. The
commissioner shall:
(1) Appoint a director and other personnel as necessary
to carry out the purposes of this chapter;
(2) Coordinate youth employment and training efforts
under the department's jurisdiction and cooperate with other
agencies or departments providing youth services to ensure
that funds appropriated for the purposes of this chapter will
not be expended to duplicate existing services, but will
increase the services of youth to the state;
(3) The employment security department is authorized to
place subgrants with other federal, state, and local governmental agencies and private agencies to provide youth
employment projects and to increase the numbers of youth
employed;
(4) Determine appropriate financial support levels by
private business, community groups, foundations, public
agencies, and individuals which will provide matching funds
for enrollees in service projects under work agreements. The
matching funds requirement may be waived for public agencies or reduced for private agencies;
(5) Recruit enrollees who are residents of the state unemployed at the time of application and are at least eighteen
years of age but have not reached their twenty-sixth birthday;
(6) Recruit supervising agencies to host the enrollees in
full-time service activities which shall not exceed eleven
months' duration;
(7) Assist supervising agencies in the development of
scholarships and matching funds from private and public
50.65.030
(2004 Ed.)
Washington Service Corps
agencies, individuals, and foundations in order to support a
portion of the enrollee's stipend and benefits;
(8) Develop general employment guidelines for placement of enrollees in supervising agencies to establish appropriate authority for hiring, firing, grievance procedures, and
employment standards which are consistent with state and
federal law;
(9) Match enrollees with appropriate public agencies and
available service projects;
(10) Monitor enrollee activities for compliance with this
chapter and compliance with work agreements;
(11) Assist enrollees in transition to employment upon
termination from the programs, including such activities as
orientation to the labor market, on-the-job training, and
placement in the private sector;
(12) Establish a program for providing incentives to
encourage successful completion of terms of enrollment in
the service corps and the continuation of educational pursuits.
Such incentives shall be in the form of educational assistance
equivalent to two years of community or technical college
tuition for eleven months of service. Educational assistance
funding shall only be used for tuition, fees, and courserelated books and supplies. Enrollees who receive educational assistance funding shall start using it within one year of
their service completion and shall finish using it within four
years of their service completion;
(13) Enter into agreements with the state's community
and technical college system and other educational institutions or independent nonprofit agencies to provide special
education in basic skills, including reading, writing, and
mathematics for those participants who may benefit by participation in such classes. Participation is not mandatory but
shall be strongly encouraged. [1993 c 302 § 1; 1987 c 167 §
3; 1983 1st ex.s. c 50 § 3.]
Effective date—1993 c 302: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1,
1993." [1993 c 302 § 9.]
50.65.070
ment or contract with independent, private nonprofit agencies
in a local community to establish the Washington service
corps program and to insure coverage of the program statewide. Each local office shall maintain a list of available youth
employment opportunities in the jurisdiction covered by the
local office and the appropriate forms or work agreements to
enable the youths to apply for employment in private or public supervising agencies. [1987 c 167 § 5; 1983 1st ex.s. c 50
§ 5.]
50.65.060
50.65.060 Washington service corps—Placement
under work agreements. Placements in the Washington
service corps shall be made in supervising agencies under
work agreements as provided under this chapter and shall
include those assignments which provide for addressing community needs and conservation problems and will assist the
community in economic development efforts. Each work
agreement shall:
(1) Demonstrate that the service project is appropriate
for the enrollee's interests, skills, and abilities and that the
project is designed to meet unmet community needs;
(2) Include a requirement of regular performance evaluation. This shall include clear work performance standards
set by the supervising agency and procedures for identifying
strengths, recommended improvement areas and conditions
for probation or dismissal of the enrollee; and
(3) Include a commitment for partial financial support
for the enrollee from private industry, public agencies, community groups, or foundations. The commissioner may establish additional standards for the development of placements
for enrollees with supervising agencies and assure that the
work agreements comply with those standards. This section
shall not apply to conservation corps programs established by
chapter 43.220 RCW.
Agencies of the state may use the Washington service
corps for the purpose of employing youth qualifying under
this chapter. [1993 c 302 § 3; 1987 c 167 § 6; 1983 1st ex.s.
c 50 § 6.]
50.65.040
50.65.040 Washington service corps—Criteria for
enrollment. The commissioner may select and enroll in the
Washington service corps program any person who is at least
eighteen years of age but has not reached their twenty-sixth
birthday, is a resident of the state, and who is not for medical,
legal, or psychological reasons incapable of service. Efforts
shall be made to enroll youths who are economically,
socially, physically, or educationally disadvantaged. The
commissioner may prescribe such additional standards and
procedures in consultation with supervising agencies as may
be necessary in conformance with this chapter. In addition,
the commissioner may select and enroll youth fourteen to
seventeen years of age on special projects during the summer
and at other times during the school year that may complement and support their school curriculum or that link and support service with learning. [1993 c 302 § 2; 1987 c 167 § 4;
1983 1st ex.s. c 50 § 4.]
Effective date—1993 c 302: See note following RCW 50.65.030.
50.65.050
50.65.050 Washington service corps—List of local
youth employment opportunities. The commissioner shall
use existing local offices of the employment security depart(2004 Ed.)
Effective date—1993 c 302: See note following RCW 50.65.030.
50.65.065
50.65.065 Work agreements—Requirements. For
each enrollee, the work agreements, or combination of work
agreements, developed under RCW 50.65.060 shall:
(1) Include a variety of experiences consisting of:
Indoor activities; outdoor activities; and volunteer activities;
(2) Provide time for participation in a core training program common to all participants. [1993 c 302 § 4.]
Effective date—1993 c 302: See note following RCW 50.65.030.
50.65.070
50.65.070 Enrollees not to displace current workers.
The assignment of enrollees shall not result in the displacement of currently employed workers, including partial displacement such as reduction in hours of nonovertime work,
wages, or other employment benefits. Supervising agencies
that participate in the program may not terminate, lay-off, or
reduce the working hours of any employee for the purpose of
utilizing an enrollee with funds available. In circumstances
where substantial efficiencies or a public purpose may result,
supervising agencies may utilize enrollees to carry out essen[Title 50 RCW—page 87]
50.65.080
Title 50 RCW: Unemployment Compensation
tial agency work or contractual functions without displacing
current employees. [1983 1st ex.s. c 50 § 7.]
50.65.080
50.65.080 Commissioner to seek assistance for Washington service corps. The commissioner shall seek and may
accept, on behalf of the Washington service corps, charitable
donations of cash and other assistance including, but not limited to, equipment and materials if the donations are available
for appropriate use for the purposes set forth in this chapter.
[1993 c 302 § 6; 1983 1st ex.s. c 50 § 8.]
Effective date—1993 c 302: See note following RCW 50.65.030.
50.65.090
50 .65.090 Au thority for in come-generating
projects—Disposition of income. The commissioner may
enter into income-generating projects with public or private
organizations to further the purposes of this chapter. Moneys
received from contractual projects qualifying under this
chapter shall be deposited in the state general fund. This section does not apply to conservation corps programs established by chapter 43.220 RCW. [1983 1st ex.s. c 50 § 9.]
50.65.100
50.65.100 Work agreements—Nondiscrimination.
All parties entering into work agreements under this chapter
shall agree that they will not discriminate in the providing of
any service on the basis of race, creed, ethnic origin, sex, age,
or political affiliation. [1983 1st ex.s. c 50 § 10.]
50.65.110
50.65.110 Enrollees—Training and subsistence
allowance—Medical insurance and medical aid—Notice
of coverage. The compensation received shall be considered
a training and subsistence allowance. Comprehensive medical insurance, and medical aid shall be paid for the enrollees
in the service corps by the commissioner in accordance with
the standards and limitations of the appropriation provided
for this chapter. The department shall give notice of coverage
to the director of labor and industries after enrollment. The
department shall not be deemed an employer of an enrollee
for any other purpose.
Other provisions of law relating to civil service, hours of
work, rate of compensation, sick leave, unemployment compensation, old age health and survivor's insurance, state
retirement plans, and vacation leave do not apply to enrollees. [1987 c 167 § 7; 1985 c 230 § 6; 1983 1st ex.s. c 50 §
11.]
Severability—1985 c 230: See RCW 43.220.902.
50.65.120
50.65.120 Exemption of enrollees from unemployment compensation coverage. The services of enrollees
placed with supervising agencies described in chapter 50.44
RCW are exempt from unemployment compensation coverage under RCW 50.44.040(5) and the enrollees shall be so
advised by the department. [1983 1st ex.s. c 50 § 12.]
50.65.130
50.65.130 Federal and private sector funds and
grants. In addition to any other power, duty, or function
described by law or rule, the employment security department, through the program established under this chapter,
may accept federal or private sector funds and grants and
implement such programs relating to community services or
employment programs and may enter into contracts respect[Title 50 RCW—page 88]
ing such funds or grants. The department may also use funds
appropriated for the purposes of this chapter as matching
funds for federal or private source funds to accomplish the
purposes of this chapter. The Washington service corps shall
be the sole recipient of federal funds for youth employment
and conservation corps programs. [1987 c 167 § 8; 1983 1st
ex.s. c 50 § 13.]
50.65.138
50.65.138 Use of funds for enrollees and projects in
distressed areas—Service corps. Sixty percent of the general funds available to the service corps program shall be for
enrollees from distressed areas and for projects in distressed
areas. A distressed area shall mean:
(1) A county which has an unemployment rate which is
twenty percent above the state average for the immediately
preceding three years;
(2) A community which has experienced sudden and
severe loss of employment; or
(3) An area within a county which area:
(a) Is composed of contiguous census tracts;
(b) Has a minimum population of five thousand persons;
(c) The median household income is at least thirty-five
percent below the county's median household income, as
determined from data collected for the preceding United
States ten-year census; and
(d) Has an unemployment rate which is at least forty percent higher than the county's unemployment rate. For purposes of this definition, "families and unrelated individuals"
has the same meaning that is ascribed to that term by the federal department of housing and urban development in its regulations authorizing action grants for economic development
and neighborhood revitalization projects. [1987 c 167 § 10.]
50.65.143
50.65.143 Limitation on use of funds for administration—Service corps. (1) Not more than fifteen percent of
the funds available for the service corps shall be expended for
administrative costs. For the purposes of this chapter,
"administrative costs" include, but are not limited to, program planning and evaluation, budget development and monitoring, personnel management, contract administration,
administrative payroll, development of program reports, and
administrative office space costs and utilities.
(2) The fifteen percent limitation does not include costs
for any of the following: Program support activities such as
direct supervision of enrollees and corpsmembers, counseling, education and job training, equipment, advisory board
expenses, and extraordinary recruitment and placement procedures necessary to fill project positions.
(3) The total for all items included under subsection (1)
of this section and excluded under subsection (2) of this section shall not: (a) Exceed thirty percent of the appropriated
funds available during a fiscal biennium for the service and
conservation corps programs; or (b) result in an average cost
per enrollee or corpsmember from general funds exceeding
seven thousand dollars in the 1987-89 biennium and in succeeding biennia as adjusted by inflation factors established
by the office of financial management for state budgeting
purposes. The test included in (a) and (b) of this subsection
are in the alternative, and it is only required that one of the
tests be satisfied. [1987 c 167 § 11.]
(2004 Ed.)
Washington Service Corps
50.65.150
50.65.150 Washington service corps scholarship
account—Created—Use. The Washington service corps
scholarship account is created in the custody of the state treasurer. The account shall consist of a portion of Washington
service corps funding, deposited by the commissioner, in an
amount sufficient to provide for the future awarding of educational assistance grants described in RCW 50.65.030.
Expenditures from the account may be used only for educational assistance grants described in RCW 50.65.030. Only
the commissioner or the commissioner's designee may authorize expenditures from the account. The account is subject to
the allotment procedures under chapter 43.88 RCW, but no
appropriation is required for expenditures. All earnings of
investments of surplus balances in the account shall be
deposited to the treasury income account created in RCW
43.84.092. [1993 c 302 § 5.]
Effective date—1993 c 302: See note following RCW 50.65.030.
50.65.200
50.65.200 Washington serves—Findings—Declaration. The legislature finds that:
(1) Budget constraints are causing severe gaps and
reductions in vital services to local communities and citizens.
Some of these gaps in services can be filled by citizen volunteers through an organized program to recruit and place volunteers and to expand opportunities for volunteers to serve
their communities;
(2) The federal government is proposing expansion of
national services programs. These programs may require significant matching resources from states. State funds supporting the Washington serves program can serve as a required
matching source to leverage additional federal national service resources;
(3) Washington state has, through the Washington service corps, successfully offered service opportunities and
meaningful work experience to young adults between the
ages of eighteen and twenty-five years;
(4) The need exists to expand full-time volunteer opportunities to citizens age twenty-one and over, to encourage
senior citizens, college graduates, professional and technically skilled persons, and other adult citizens, to contribute
their critical expertise, experience, labor, and commitment to
meeting the needs of their communities;
(5) It is appropriate and in the public's interest for Washington state to create opportunities for citizens to engage in
full-time, meaningful volunteer service in governmental or
private nonprofit agencies, institutions, programs, or activities that address the social, economic, educational, civic, cultural, or environmental needs of local communities;
(6) Through volunteer service, citizens apply their skills
and knowledge to the resolution of critical problems or meeting unmet needs, gain valuable experience, refine or develop
new skills, and instill a sense of civic pride and commitment
to their community;
(7) There is a need to coordinate state and federally
funded volunteer service programs that provide living allowances and other benefits to volunteers to maximize the benefits to volunteers and the organizations in which they serve.
It is therefore the legislature's desire to expand full-time
volunteer opportunities for citizens age twenty-one and over
and to provide appropriate incentives to those who serve.
(2004 Ed.)
50.65.230
Such a program should be implemented statewide and coordinated across programs. [1993 sp.s. c 7 § 1.]
50.65.210
50.65.210 Washington serves—Definitions. Unless
the context clearly requires otherwise, the definitions in this
section apply throughout this chapter.
(1) "Commissioner" means the commissioner of the
employment security department.
(2) "*Council" means the Washington council on volunteerism and citizen service authorized by chapter 43.150
RCW.
(3) "Department" means the employment security
department.
(4) "Volunteer" means a person at least twenty-one years
of age who, upon application and acceptance into the program, is placed in a governmental or private, nonprofit organization to perform full-time service for the benefit of the
community, and who receives a living allowance and other
benefits as authorized under this chapter. [1993 sp.s. c 7 § 2.]
*Reviser's note: RCW 43.150.060, which created the Washington state
council on volunteerism and citizen service, was repealed by 1995 c 269 §
2302, effective July 1, 1995.
50.65.220
50.65.220 Washington serves—Program—Created—Procedure—Intent. There is hereby created within
the employment security department a program for full-time
community service that shall be known and referred to as the
Washington serves program. The department shall recruit,
train, place, and evaluate applicants to the program. The
department may accept applications and enter into agreements or contracts with any governmental or private nonprofit organization appropriate for placement of volunteers
under this program. The commissioner, after consultation
with the council, may adopt rules as needed to carry out the
intent and purposes of this program. It is the intent of the legislature that the commissioner coordinate this program with
all volunteer service programs, whether funded with state or
federal dollars, in order to maximize the benefits to volunteers and the communities served under the program. It is
also the legislature's intent that to the extent that state funds
are paid directly to persons that participate in the program,
whether to reimburse, support, assist, or provide other direct
payment, no volunteer may have such reimbursement, support, assistance, or other payment reduced or withheld for
having served in the program. [1993 sp.s. c 7 § 3.]
50.65.230
50.65.230 Washington serves—Applicants—Eligibility. (1) Applicants to the Washington serves program shall
be at least twenty-one years of age and a resident of Washington state.
(2) Applicants may apply to serve for a period of service
of one year, except that volunteers may serve for periods of
service of less than one year if it is determined by the commissioner, on an individual basis, that a period of service of
less than one year is necessary to meet a critical scarce skill
or necessary to enable a person or organization to participate
in the program.
(3) Volunteers may reapply for periods of service totaling not more than two additional years.
[Title 50 RCW—page 89]
50.65.240
Title 50 RCW: Unemployment Compensation
(4) Applicants to the program shall be committed to providing full-time service to the community. [1993 sp.s. c 7 §
4.]
with the intent and purpose of the program and would benefit
the community or the state as a whole. [1993 sp.s. c 7 § 5.]
50.65.260
50.65.240
50.65.240 Washington serves—Disqualification for
Washington service corps participation. No individual
may participate in the Washington serves program created by
chapter 7, Laws of 1993 sp. sess., if the person has previously
participated for six months or longer in the Washington service corps within the last three years. [1993 c 302 § 10.]
Effective date—1993 c 302: See note following RCW 50.65.030.
50.65.250
50.65.250 Washington serves—Volunteers—Selection—Placement. (1) Program volunteers shall be selected
from among qualified individuals submitting applications for
full-time service at such time, in such form, and containing
such information as may be necessary to evaluate the suitability of each individual for service, and available placements. The commissioner or the commissioner's designee
shall review the application of each individual who applies in
conformance with selection criteria established by the commissioner after consultation with the council, and who, on the
basis of the information provided in the application, is determined to be suitable to serve as a volunteer under the Washington serves program.
(2) Within available funds, volunteers may be placed
with any public or private nonprofit organization, program,
or project that qualifies to accept program volunteers according to the rules and application procedures established by the
commissioner. Work shall benefit the community or state atlarge and may include but is not limited to programs,
projects, or activities that:
(a) Address the problems of jobless, homeless, hungry,
illiterate, or functionally illiterate persons, and low-income
youths;
(b) Provide support and a special focus on those project
activities that address the needs of the unemployed and those
in need of job training or retraining;
(c) Address significant health care problems, including
services to homeless individuals and other low-income persons, especially children, through prevention and treatment;
(d) Meet the health, education, welfare, or related needs
of low-income persons, particularly children and low-income
minority communities;
(e) Provide care or rehabilitation services to the mentally
ill, developmentally disabled, or other persons with disabilities;
(f) Address the educational and education-related needs
of children, youth, families, and young adults within public
educational institutions or related programs;
(g) Address alcohol and drug abuse prevention, education, and related activities; and
(h) Seek to enhance, improve, or restore the environment
or that educate or advocate for a sustainable environment.
(3) Every reasonable effort shall be made to place participants in programs, projects, or activities of their choice if the
agencies, programs, or activities are consistent with the intent
and purposes of the Washington serves program, if there is
mutual agreement between the agency, program, or activity
and the volunteer, and if the volunteer's service is consistent
[Title 50 RCW—page 90]
50.65.260 Washington serves—Volunteers—Support. (1) Volunteers accepted into the Washington serves
program and placed in an approved agency, program, or
activity, shall be provided a monthly subsistence allowance
in an amount determined by the commissioner taking into
consideration the allowance given to VISTA, Washington
service corps, and other similar service programs. For those
persons who qualify and are granted a deferment of federal
student loan payments while serving in the program, the rate
of compensation shall be equal to but not greater than the
monthly subsistence allowance granted Volunteers In Service To America (VISTA) serving in this state, as determined
by the national ACTION agency or its successor, in accordance with section 105(b)(2) of the Domestic Volunteer Service Act of 1973, P.L. 93-113, as amended.
(2) The commissioner or the commissioner's designee
shall, within available funds, ensure that each volunteer has
available support to enable the volunteer to perform the work
to which the volunteer is assigned. Such support may include,
but is not limited to, reimbursement for travel expenses, payment for education and training expenses, including preservice and on-the-job training necessary for the performance of
duties, technical assistance, and other support deemed necessary and appropriate.
(3) At the end of each volunteer's period of service of not
less than one year, each volunteer may receive a postservice
stipend for each month of completed service in an amount
determined by the commissioner. The postservice stipend for
those persons who qualify and are granted a deferment of federal student loan payments while serving in this program
shall be an amount equal to but not greater than the amount or
rate determined by the national ACTION agency or its successor, in accordance with section 105(b)(2) of the Domestic
Volunteer Service Act of 1973, P.L. 93-113 as amended, for
Volunteers In Service To America (VISTA), who are providing services in this state. Volunteers under the Washington
serves program may accrue the stipend for each month of
their service period of not less than one year, including any
month during which they were in training. The commissioner
or the commissioner's designee may, on an individual basis,
make an exception to provide a stipend to a volunteer who
has served less than one year.
(4) Stipends shall be payable to the volunteer only upon
completion of the period of service. Under circumstances
determined by the commissioner, the stipend may be paid on
behalf of the volunteer to members of the volunteer's family
or others designated by the volunteer. [1993 sp.s. c 7 § 6.]
50.65.270
50.65.270 Washington serves—Volunteers—Medical
benefits—Benefit limits. Within available funds, medical
aid coverage under chapter 51.36 RCW and medical insurance shall be provided to all volunteers under this program.
The department shall give notice of medical aid coverage to
the director of labor and industries upon acceptance of the
volunteer into the program. The department shall not be
deemed an employer of any volunteer under the Washington
serves program for any other purpose. Other provisions of
(2004 Ed.)
Washington Service Corps
law relating to civil service, hours of work, rate of compensation, sick leave, unemployment compensation, old age, health
and survivor's insurance, state retirement plans, and vacation
leave do not apply to volunteers under this program. [1993
sp.s. c 7 § 7.]
50.65.280
50.65.280 Washington serves—Displacement of current workers prohibited. The assignment of volunteers
under the Washington serves program shall not result in the
displacement of currently employed workers, including partial displacement such as would result from a reduction in
hours of nonovertime work, wages, or other employment
benefits. Participating agencies, programs, or activities may
not terminate, lay off, or reduce the working hours of any
employee for the purpose of using volunteers under the
Washington serves program. In circumstances where substantial efficiencies or a public purpose may result, participating agencies may use volunteers to carry out essential agency
work or contractual functions without displacing current
employees. [1993 sp.s. c 7 § 8.]
50.65.290
50.65.290 Washington serves—Volunteers—Unemployment compensation coverage limited. The services of
volunteers placed with participating agencies described in
chapter 50.44 RCW are not eligible for unemployment compensation coverage. Each volunteer shall be so advised by the
commissioner or the commissioner's designee. [1993 sp.s. c
7 § 9.]
50.65.300
50.65.300 Washington serves—Volunteers—Assistance to defer student loan payments. The commissioner
or the commissioner's designee may assist any volunteer
serving full-time under the Washington serves program in
obtaining a service deferment of federally funded student
loan payments during his or her period of service. [1993 sp.s.
c 7 § 10.]
50.65.310
50.65.310 Washington serves—Volunteers—Subsequent development of skills and experience—Recognition. The commissioner or the commissioner's designee may
provide or arrange for educational, vocational, or job counseling for program volunteers at the end of their period of service to (1) encourage volunteers to use the skills and experience which they have derived from their training and service,
and (2) promote the development of appropriate opportunities for the use of such skills and experience, and the placement therein of such volunteers. The commissioner or the
commissioner's designee may also assist volunteers in developing a plan for gainful employment.
The commissioner shall provide for an appropriate
means of recognition or certification of volunteer service.
[1993 sp.s. c 7 § 11.]
50.65.320
50.65.320 Washington serves—Service placement—
Work agreements—Contracts—Rules for agencies—
Financial support for organizations. The executive administrator of the Washington serves program shall recruit and
develop service placements and may enter into work agreements or contracts as needed to implement the Washington
serves program. The commissioner, after consultation with
(2004 Ed.)
50.65.905
the council, may adopt rules for participating agencies which
rules may include, but are not limited to: Supervision of volunteers, reasonable work space or other working environment conditions, ongoing training, the handling of grievances
or disputes, performance evaluations, frequency of agency
contacts, and liability insurance coverage. The commissioner
shall determine financial support levels for organizations
receiving volunteer placements that will provide matching
funds for enrollees in service projects under work agreements. [1993 sp.s. c 7 § 12.]
50.65.330
50.65.330 Washington serves—Gifts, grants, endowments—Matching funds. The department may receive such
gifts, grants, and endowments from private or public sources
that may be made from time to time, in trust or otherwise, for
the use and benefit of the Washington serves program and
spend the same or any income therefrom according to the
terms of the gifts, grants, or endowments.
The department may also use funds appropriated for the
purposes of this chapter as matching funds for federal or private source funds to accomplish the purposes of this chapter.
[1993 sp.s. c 7 § 13.]
50.65.901
50.65.901 Conflict with federal requirements—1983
1st ex.s. c 50. If any part of this act is found to be in conflict
with federal requirements which are a prescribed condition to
the allocation of federal funds to the state, such conflicting
part of this act is declared to be inoperative solely to the
extent of the conflict, and such finding or determination shall
not affect the operation of the remainder of this act. The rules
under this act shall meet federal requirements which are a
necessary condition to the receipt of federal funds by the
state. [1983 1st ex.s. c 50 § 16.]
50.65.902
50.65.902 Severability—1983 1st ex.s. c 50. If any
provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances
is not affected. [1983 1st ex.s. c 50 § 17.]
50.65.903
50.65.903 Conflict with federal requirements—1987
c 167. If any part of this chapter is found to be in conflict
with federal requirements which are a prescribed condition to
the allocation of federal funds to the state, such conflicting
part of this chapter is declared to be inoperative solely to the
extent of the conflict, and such finding or determination shall
not affect the operation of the remainder of this chapter. The
rules under this chapter shall meet federal requirements
which are a necessary condition to the receipt of federal funds
by the state. [1987 c 167 § 12.]
50.65.904
50.65.904 Severability—1987 c 167. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1987 c 167 § 13.]
50.65.905
50.65.905 Effective date—1987 c 167. This act is necessary for the immediate preservation of the public peace,
health, and safety, the support of the state government and its
[Title 50 RCW—page 91]
50.65.906
Title 50 RCW: Unemployment Compensation
existing public institutions, and shall take effect June 30,
1987. [1987 c 167 § 15.]
50.65.906
50.65.906 Conflict with federal requirements—1993
sp.s. c 7. If any part of this act is found to be in conflict with
federal requirements which are prescribed conditions to the
receipt of federal funds or participation in any federal program, such conflicting part of this act is declared to be inoperative solely to the extent of the conflict, and such finding or
determination shall not affect the operation of the remainder
of the act. Rules adopted pursuant to this act shall meet federal requirements which are a necessary condition to the
receipt of federal funds by the state. [1993 sp.s. c 7 § 14.]
50.65.907
50.65.907 Short title—1993 sp.s. c 7. Sections 1
through 13 of this act may be known and cited as the Washington serves act. [1993 sp.s. c 7 § 15.]
50.65.908
50.65.908 Severability—1993 sp.s. c 7. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not
affected. [1993 sp.s. c 7 § 18.]
Chapter 50.70 RCW
PROGRAMS FOR DISLOCATED FOREST
PRODUCTS WORKERS
Chapter 50.70
Sections
50.70.030
50.70.040
50.70.050
50.70.900
50.70.901
50.70.902
Employment opportunities—Benefits.
Recruitment—Career orientation services—Career counseling.
Department of natural resources duties.
Severability—1991 c 315.
Conflict with federal requirements—1991 c 315.
Effective date—1991 c 315.
Community college program for dislocated forest products workers: RCW
28B.50.259.
Emergency mortgage and rental assistance program—Rural natural
resources impact areas—Grants and loans: RCW 43.63A.610 through
43.63A.640.
Enrollment of persons in timber impact areas in basic health plan: RCW
70.47.115.
Skagit river salmon recovery plan: RCW 77.95.140.
50.70.030
50.70.030 Employment opportunities—Benefits. (1)
Employment opportunities under the program shall consist of
activities that improve the value of state lands and waters.
These activities may include, but are not limited to, thinning
and precommercial thinning, pruning, slash removal, reforestation, fire suppression, trail maintenance, maintenance of
recreational facilities, dike repair, development and maintenance of tourist facilities, and stream enhancement.
(2) Enrollees in the program shall receive medical and
dental benefits as provided under chapter 41.05 RCW, but are
exempt from the provisions of chapter 41.06 RCW. Each
week, enrollees shall not work more than thirty-two hours in
this program and must participate in eight hours of career orientation as established in RCW 50.70.040. Participation in
the program is limited to six months. [1991 c 315 § 7.]
Intent—1991 c 315: See note following RCW 28B.50.030.
[Title 50 RCW—page 92]
50.70.040
50.70.040 Recruitment—Career orientation services—Career counseling. (1) The department shall recruit
program applicants and provide employment opportunities
by:
(a) Notifying dislocated forest products workers who are
receiving unemployment benefits, or dislocated forest products workers who have exhausted unemployment benefits, of
their eligibility for the program.
(b) Establishing procedures for dislocated forest products workers to apply to the program.
(c) Developing a pool of workers eligible to enroll in the
program.
(d) Contracting with the department of natural resources
to provide employment opportunities for not less than two
hundred eligible enrollees.
(2) The department shall provide career orientation services to enrollees in the program. The career orientation services shall include, but are not limited to, counseling on
employment options and assistance in accessing retraining
programs, and assistance in accessing social service programs.
(3) The department shall provide at least eight hours of
career counseling each week for program enrollees. [1991 c
315 § 8.]
Intent—1991 c 315: See note following RCW 28B.50.030.
50.70.050
50.70.050 Department of natural resources duties.
(1) The department of natural resources shall enroll candidates in the program from a pool of eligible workers developed by the department.
(2) The department of natural resources shall provide
compensation for enrollees. [1991 c 315 § 9.]
Intent—1991 c 315: See note following RCW 28B.50.030.
50.70.900
50.70.900 Severability—1991 c 315. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1991 c 315 § 31.]
50.70.901
50.70.901 Conflict with federal requirements—1991
c 315. If any part of this act is found to be in conflict with
federal requirements which are a prescribed condition to the
allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits,
the conflicting part of this act is hereby declared to be inoperative solely to the extent of the conflict, and such finding or
determination shall not affect the operation of the remainder
of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state. [1991 c 315 § 32.]
50.70.902
50.70.902 Effective date—1991 c 315. This act is necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its
existing public institutions, and shall take effect immediately
[May 21, 1991], except for section 4 of this act, which shall
take effect July 1, 1991. [1991 c 315 § 33.]
(2004 Ed.)
Youthbuild Program
Chapter 50.72
Chapter 50.72 RCW
YOUTHBUILD PROGRAM
Sections
50.72.010
50.72.020
50.72.030
50.72.040
50.72.050
50.72.060
50.72.070
Legislative findings.
Definitions.
Commissioner's duties—Education and employment training
grants.
Education and employment training grants—Eligible activities.
Participation time limits—Educational services and activities
requirement.
Grant applications—Requirements.
Grant applicants—Information required—Evaluation reports.
50.72.040
school diploma or a certificate of equivalency for such
diploma.
(6) "Very low income" means a person or household
whose income is at or below fifty percent of the median family income, adjusted for household size, for the county where
the household is located.
(7) "Youthbuild" means any program that provides disadvantaged youth with opportunities for employment, education, leadership development, entrepreneurial skills development, and training in the construction or rehabilitation of
housing for special need populations, very low-income
households, or low-income households. [1994 sp.s. c 3 § 2.]
50.72.010
50.72.010 Legislative findings. (1) The legislature
finds that there is a need to:
(a) Expand the supply of permanent affordable housing
for homeless individuals, low and very low-income persons,
and special need populations by utilizing the energies and talents of economically disadvantaged youth;
(b) Provide economically disadvantaged youth with
opportunities for meaningful work and service to their communities in helping to meet the housing needs of homeless
individuals, low and very low-income persons, and special
need populations;
(c) Enable economically disadvantaged youth to obtain
the education and employment skills necessary to achieve
economic self-sufficiency; and
(d) Foster the development of leadership skills and commitment to community development among youth in designated community empowerment zones.
(2) The legislature declares that the purpose of the Washington youthbuild program is to:
(a) Help disadvantaged youth who have dropped out of
school to obtain the education and employment skills necessary to achieve economic self-sufficiency and develop leadership skills and a commitment to community development
in designated community empowerment zones; and
(b) Provide funding assistance to entities implementing
programs that provide comprehensive education and skills
training programs designed to lead to self-sufficiency for
economically disadvantaged youth. [1994 sp.s. c 3 § 1.]
50.72.020
50.72.020 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Applicant" means a public or private nonprofit organization agency eligible to provide education and employment training under federal or state employment training programs.
(2) "Commissioner" means the commissioner of
employment security.
(3) "Department" means the employment security
department.
(4) "Low income" has the same meaning as in RCW
43.185A.010.
(5) "Participant" means an individual that:
(a) Is sixteen to twenty-four years of age, inclusive;
(b) Is or is a member of a very low-income household;
and
(c) Is neither attending any school nor subject to a compulsory attendance law and who has not received a secondary
(2004 Ed.)
50.72.030
50.72.030 Commissioner's duties—Education and
employment training grants. The Washington youthbuild
program is established within the department. The commissioner, in cooperation and consultation with the director of
the department of community, trade, and economic development, shall:
(1) Make grants, up to the lesser of three hundred thousand dollars or twenty-five percent of the total costs of the
youthbuild activities, to applicants eligible to provide education and employment training under federal or state employment training programs, for the purpose of carrying out a
wide range of multidisciplinary activities and services to
assist economically disadvantaged youth under the federal
opportunities for youth: Youthbuild program (106 Stat.
3723; 42 U.S.C. Sec. 8011), or locally developed youthbuildtype programs for economically disadvantaged youth; and
(2) Coordinate youth employment and training efforts
under the department's jurisdiction and cooperate with other
agencies and departments providing youth services to ensure
that funds appropriated for the purposes of this chapter will
be used to supplement funding from federal, state, local, or
private sources. [1994 sp.s. c 3 § 3.]
50.72.040
50.72.040 Education and employment training
grants—Eligible activities. (1) Grants made under this
chapter shall be used to fund an applicant's activities to
implement a comprehensive education and employment
skills training program.
(2) Activities eligible for assistance under this chapter
include:
(a) Education and job skills training services and activities that include:
(i) Work experience and skills training, coordinated to
the maximum extent feasible, with preapprenticeship and
apprenticeship programs in construction and rehabilitation
trades;
(ii) Services and activities designed to meet the educational needs of participants, including basic skills instruction
and remedial education, bilingual education for participants
with limited-English proficiency, secondary education services and activities designed to lead to the attainment of a
high school diploma or its equivalent, and counseling and
assistance in attaining postsecondary education and required
financial aid;
(b) Counseling services and related activities;
(c) Activities designed to develop employment and leadership skills;
[Title 50 RCW—page 93]
50.72.050
Title 50 RCW: Unemployment Compensation
(d) Support services and need-based stipends necessary
to enable the participant to participate in the program and to
assist participants through support services in retaining
employment;
(e) Wage stipends and benefits provided to participants;
and
(f) Administrative costs of the applicant, not to exceed
five percent of the amount of assistance provided under this
chapter. [1994 sp.s. c 3 § 4.]
50.72.050
50.72.050 Participation time limits—Educational
services and activities requirement. (1) An individual
selected as a participant in the youthbuild program under this
chapter may be offered full-time participation for a period of
not less than six months and not more than twenty-four
months.
(2) An applicant's program that is selected for funding
under this chapter shall be structured so that fifty percent of
the time spent by the participants in the youthbuild program
is devoted to educational services and activities, such as those
outlined in RCW 50.72.040. [1994 sp.s. c 3 § 5.]
50.72.060
50.72.060 Grant applications—Requirements. (1)
An application for a grant under this chapter shall be submitted by the applicant in such form and in accordance with the
requirements as determined by the commissioner.
(2) The application for a grant under this chapter shall
contain at a minimum:
(a) The amount of the grant request and its proposed use;
(b) A description of the applicant and a statement of its
qualifications, including a description of the applicant's past
experience with housing rehabilitation or construction with
youth and youth education and employment training programs, and its relationship with local unions and apprenticeship programs and other community groups;
(c) A description of the proposed site for the program;
(d) A description of the educational and job training
activities, work opportunities, and other services that will be
provided to participants;
(e) A description of the proposed construction or rehabilitation activities to be undertaken and the anticipated schedule for carrying out such activities;
(f) A description of the manner in which eligible participants will be recruited and selected, including a description
of arrangements which will be made with federal or state
agencies, community-based organizations, local school districts, the courts of jurisdiction for status and youth offenders,
shelters for homeless individuals and other agencies that
serve homeless youth, foster care agencies, and other appropriate public and private agencies;
(g) A description of the special outreach efforts that will
be undertaken to recruit eligible young women, including
young women with dependent children;
(h) A description of how the proposed program will be
coordinated with other federal, state, local, and private
resources and programs, including vocational, adult, and
bilingual education programs, and job training programs;
(i) Assurances that there will be a sufficient number of
adequately trained supervisory personnel in the program who
have attained the level of journeyman or have served an
[Title 50 RCW—page 94]
apprenticeship through the Washington state apprenticeship
training council;
(j) A description of the applicant's relationship with
building contractor groups and trade unions regarding their
involvement in training, and the relationship of the youthbuild program with established apprenticeship and training
programs;
(k) A description of activities that will be undertaken to
develop the leadership skills of the participants;
(l) A description of the commitments for any additional
resources to be made available to the local program from the
applicant, from recipients of other federal, state, local, or private sources; and
(m) Other factors the commissioner deems necessary.
[1994 sp.s. c 3 § 6.]
50.72.070
50.72.070 Grant applicants—Information
required—Evaluation reports. (1) An applicant selected
for funding under this chapter shall provide the department
information on program and participant accomplishments.
The information shall be provided in progress and final
reports as requested by the department.
(2) A final evaluation report shall be prepared on individual programs at the time of their completion. The final
evaluation report shall include, but is not limited to, information on the effectiveness of the program, the status of program participants, and recommendations on program administration at the state and local level. [1998 c 245 § 103; 1994
sp.s. c 3 § 7.]
Chapter 50.98
Chapter 50.98 RCW
CONSTRUCTION
Sections
50.98.010
50.98.020
50.98.030
50.98.040
50.98.050
50.98.060
50.98.070
50.98.080
50.98.100
50.98.110
Saving clause—1945 c 35.
Appointments and regulations continued.
Actions commenced under prior laws.
Acts repealed.
Conflicting acts repealed.
Repealed acts not reenacted.
Separability of provisions—1945 c 35.
Effective date—1945 c 35.
Base year wages to include remuneration paid for previously
uncovered services.
Compliance with federal unemployment tax act—Internal references—Interpretation.
50.98.010
50.98.010 Saving clause—1945 c 35. If any provisions
of this act, or the application thereof to any person or circumstances, is held invalid, the remainder of the act and the application of such provision to other persons or circumstances
shall not be affected thereby. [1945 c 35 § 184; no RRS.]
50.98.020
50.98.020 Appointments and regulations continued.
The repeal of any acts or parts of acts by this act shall not
affect the appointment or employment of any individual or
salary, wages, compensation, powers or duties relating to
such individual which would continue in effect except for
such repeal. Rules and regulations adopted pursuant to the
provisions of any acts or parts of acts repealed by this act consistent with the provisions of this act are not affected by such
repeal and are hereby continued in full force and effect.
[1945 c 35 § 185; no RRS.]
(2004 Ed.)
Construction
50.98.030
50.98.030 Actions commenced under prior laws. Any
action or proceeding had or commenced in any civil or criminal cause prior to the effective date of this act may be prosecuted and continued with the same effect and under the same
provisions of the law in effect at the time the action or proceeding was had or commenced: PROVIDED, That no
appeal taken subsequent to the effective date of this act will
be effective or valid unless there is compliance with the
requirements of this act relating to appeals. [1945 c 35 § 186;
no RRS.]
50.98.040
50.98.040 Acts repealed. The following acts and parts
of acts relating to unemployment compensation are hereby
repealed: Chapter 162, Session Laws of 1937; chapter 12,
Session Laws of 1939; chapter 214, Session Laws of 1939;
section 6 of chapter 201, Session Laws of 1941; chapter 253,
Session Laws of 1941; chapter 65, Session Laws of 1943;
chapter 127, Session Laws of 1943; chapter 226, Session
Laws of 1943. [1945 c 35 § 188; no RRS.]
50.98.050
50.98.050 Conflicting acts repealed. All acts or parts
of acts in conflict with or in derogation of this act or any part
of this act are hereby repealed insofar as the same are in conflict with or in derogation of this act or any part thereof.
[1945 c 35 § 189; no RRS.]
50.98.060
50.98.060 Repealed acts not reenacted. The repeal of
any acts or parts of acts hereby shall not be construed to reenact or revive any act or parts of acts repealed or superseded by
the acts or parts of acts hereby repealed. [1945 c 35 § 190; no
RRS.]
50.98.070
50.98.070 Separability of provisions—1945 c 35. If
any section, sentence, clause or phrase of this act should be
held to be invalid or unconstitutional the invalidity or unconstitutionality thereof shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of
this act. [1945 c 35 § 191; no RRS.]
Severability—1951 c 265: "If any section, sentence, clause or word of
this act shall be held unconstitutional, the invalidity of such section, sentence, clause or word shall not affect the validity of any other portion of this
act, it being the intent of this legislative assembly to enact the remainder of
this act notwithstanding such part so declared unconstitutional should or may
be so declared." [1951 c 265 § 14.]
50.98.080
50.98.080 Effective date—1945 c 35. An emergency
exists and this act is necessary for the preservation of the public peace, health, safety, and welfare and shall take effect on
the first day of July, 1945. [1945 c 35 § 192; no RRS.]
50.98.100
50.98.100 Base year wages to include remuneration
paid for previously uncovered services. (1) Effective with
benefit years beginning on and after January 1, 1978, base
year wages shall include remuneration paid for previously
uncovered services: PROVIDED, That the maximum benefits payable to an individual as computed for the benefit year
will be reduced to the extent that benefits were paid on the
basis of identical calendar quarters of the previously uncovered services with respect to a claim filed by the individual
under Title II of the Emergency Jobs and Unemployment
Assistance Act of 1974. Benefits will be paid, subject to the
(2004 Ed.)
50.98.110
provisions of this title, based upon the previously uncovered
services to the extent that the unemployment compensation
trust fund will be reimbursed for the cost thereof by the federal government under section 121 of PL 94-566 and regulations published by the secretary of labor relating thereto.
(2) For the purposes of this section, the term "previously
uncovered services" means services performed before January 1, 1978, which are not employment as defined in Title 50
RCW at any time during the one year period ending December 31, 1975, and which:
(a) Is agricultural labor as defined in RCW 50.04.150
and covered by RCW 50.04.155 or domestic services as
defined in and covered by RCW 50.04.160; or
(b) Is service performed by an employee of this state or a
political subdivision of this state newly covered by chapter
292, Laws of 1977 ex. sess. or by an employee of a nonprofit
educational institution which is not an institution of higher
education as provided in RCW 50.44.040(3).
(3) Any nonprofit organization or governmental entity
electing to make payments in lieu of contributions shall not
be liable to make payments with respect to benefits paid any
individual whose base year wages include wages for previously uncovered services as defined in subsection (2)(a) and
(b) of this section to the extent that the unemployment compensation fund is reimbursed for the benefits under section
121 of PL 94-566.
(4) Benefits paid any individual whose base year wages
include wages for previously uncovered services as defined
in subsection (2)(a) and (b) of this section shall not be
charged to the experience rating account of any contribution
paying employer to the extent that the unemployment compensation fund is reimbursed for the benefits under section
121 of PL 94-566. [1977 ex.s. c 292 § 20.]
Effective dates—1977 ex.s. c 292: See note following RCW
50.04.116.
50.98.110
50.98.110 Compliance with federal unemployment
tax act—Internal references—Interpretation. Chapter
292, Laws of 1977 ex. sess. has been enacted to meet the
requirements imposed by the federal unemployment tax act
as amended by PL 94-566. Internal references in any section
of chapter 292, Laws of 1977 ex. sess. to the provisions of
that act are intended only to apply to those provisions as they
existed as of *the effective date of chapter 292, Laws of 1977
ex. sess.
In view of the importance of compliance of chapter 292,
Laws of 1977 ex. sess. with the federal unemployment tax
act, any ambiguities contained herein should be resolved in a
manner consistent with the provisions of that act. Considerable weight has been given to the commentary contained in
that document entitled "Draft Language and Commentary to
Implement the Unemployment Compensation Amendments
of 1976 PL 94-566", published by the United States department of labor, employment and training administration, and
that commentary should be referred to when interpreting the
provisions of chapter 292, Laws of 1977 ex. sess. [1977 ex.s.
c 292 § 21.]
*Reviser's note: For the effective dates of 1977 ex.s. c 292, see note
following RCW 50.04.116.
[Title 50 RCW—page 95]
Title 51
Chapters
51.04
51.08
51.12
51.14
51.16
51.18
51.24
51.28
51.32
51.36
51.44
51.48
51.52
51.98
Title 51
INDUSTRIAL INSURANCE
51.04.010
General provisions.
Definitions.
Employments and occupations covered.
Self-insurers.
Assessment and collection of premiums—Payrolls and records.
Retrospective rating plan.
Actions at law for injury or death.
Notice and report of accident—Application for
compensation.
Compensation—Right to and amount.
Medical aid.
Funds.
Penalties.
Appeals.
Construction.
Autopsies in industrial deaths: RCW 68.50.103.
Civil defense workers, compensation for: Chapter 38.52 RCW.
Constitutional protection of employees: State Constitution Art. 2 § 35.
Department of labor and industries: Chapter 43.22 RCW.
Ferry system employees in extrahazardous employment: RCW 47.64.070.
Fisheries patrol officers, compensation insurance and medical aid: RCW
77.12.262.
Labor regulations, generally: Title 49 RCW.
Lien of employees for contributions to benefit plans: Chapter 60.76 RCW.
Occupational and environmental research facility at University of Washington: RCW 28B.20.450 through 28B.20.458.
Supervisor of industrial insurance: RCW 43.22.020.
Trusts, duration for employee's benefits: Chapter 49.64 RCW.
Unemployment compensation: Title 50 RCW.
Victims of crimes, benefits: Chapter 7.68 RCW.
Chapter 51.04
Chapter 51.04 RCW
GENERAL PROVISIONS
Sections
51.04.010
51.04.020
51.04.030
51.04.040
51.04.050
51.04.060
51.04.070
51.04.080
51.04.082
51.04.085
51.04.090
51.04.100
51.04.105
51.04.110
51.04.120
51.04.130
51.04.140
(2004 Ed.)
Declaration of police power—Jurisdiction of courts abolished.
Powers and duties.
Medical aid—Rules—Maximum fees—Records and bill payment.
Subpoena power of director—Enforcement by superior court.
Physician or licensed advanced registered nurse practitioner's
testimony not privileged.
No evasion of benefits or burdens.
Minor worker is sui juris—Guardianship expense.
Sending notices, orders, warrants to claimants.
Notices and orders—Mail or personal service.
Transmission of amounts payable.
Effect of adjudication of applicability.
Statutes of limitation saved.
Continuation of medical aid contracts.
Workers' compensation advisory committee.
Certificate of coverage required—Contents.
Industrial insurance coverage for Hanford workers—Special
agreements.
Year 2000 failure—No interest or penalties for failure to pay
premium.
51.04.010 Declaration of police power—Jurisdiction
of courts abolished. The common law system governing the
remedy of workers against employers for injuries received in
employment is inconsistent with modern industrial conditions. In practice it proves to be economically unwise and
unfair. Its administration has produced the result that little of
the cost of the employer has reached the worker and that little
only at large expense to the public. The remedy of the worker
has been uncertain, slow and inadequate. Injuries in such
works, formerly occasional, have become frequent and inevitable. The welfare of the state depends upon its industries,
and even more upon the welfare of its wage worker. The state
of Washington, therefore, exercising herein its police and
sovereign power, declares that all phases of the premises are
withdrawn from private controversy, and sure and certain
relief for workers, injured in their work, and their families
and dependents is hereby provided regardless of questions of
fault and to the exclusion of every other remedy, proceeding
or compensation, except as otherwise provided in this title;
and to that end all civil actions and civil causes of action for
such personal injuries and all jurisdiction of the courts of the
state over such causes are hereby abolished, except as in this
title provided. [1977 ex.s. c 350 § 1; 1972 ex.s. c 43 § 1; 1961
c 23 § 51.04.010. Prior: 1911 c 74 § 1; RRS § 7673.]
51.04.020
51.04.020 Powers and duties. The director shall:
(1) Establish and adopt rules governing the administration of this title;
(2) Ascertain and establish the amounts to be paid into
and out of the accident fund;
(3) Regulate the proof of accident and extent thereof, the
proof of death and the proof of relationship and the extent of
dependency;
(4) Supervise the medical, surgical, and hospital treatment to the intent that it may be in all cases efficient and up
to the recognized standard of modern surgery;
(5) Issue proper receipts for moneys received and certificates for benefits accrued or accruing;
(6) Investigate the cause of all serious injuries and report
to the governor from time to time any violations or laxity in
performance of protective statutes or regulations coming
under the observation of the department;
(7) Compile statistics which will afford reliable information upon which to base operations of all divisions under the
department;
(8) Make an annual report to the governor of the workings of the department;
(9) Be empowered to enter into agreements with the
appropriate agencies of other states relating to conflicts of
jurisdiction where the contract of employment is in one state
and injuries are received in the other state, and insofar as permitted by the Constitution and laws of the United States, to
[Title 51 RCW—page 1]
51.04.030
Title 51 RCW: Industrial Insurance
enter into similar agreements with the provinces of Canada;
and
(10) Designate a medical director who is licensed under
chapter 18.57 or 18.71 RCW. [2000 c 5 § 14; 1994 c 164 §
24; 1977 c 75 § 77; 1963 c 29 § 1; 1961 c 23 § 51.04.020.
Prior: 1957 c 70 § 3; prior: (i) 1921 c 182 § 9; 1911 c 74 §
24; RRS § 7703. (ii) 1947 c 247 § 1, part; 1911 c 74 § 4, part;
Rem. Supp. 1947 § 7676f, part.]
Intent—Purpose—2000 c 5: See RCW 48.43.005.
Application—Short title—Captions not law—Construction—Severability—Application to contracts—Effective dates—2000 c 5: See
notes following RCW 48.43.500.
Severability—1963 c 29: "If any provision of this act, or its application
to any person or circumstance is held invalid, the remainder of the act, or the
application of the provision to other persons or circumstances is not
affected." [1963 c 29 § 2.]
Assignment of wage claims: RCW 49.48.040.
Electricians, installations: Chapters 19.28, 19.29 RCW.
Farm labor contractors: Chapter 19.30 RCW.
Health and safety, underground workers: Chapter 49.24 RCW.
Minimum wage act: Chapter 49.46 RCW.
Seasonal labor disputes: Chapter 49.40 RCW.
Washington Industrial Safety and Health Act: Chapter 49.17 RCW.
51.04.030
51.04.030 Medical aid—Rules—Maximum fees—
Records and bill payment. (Expires June 30, 2007.) (1)
The director shall supervise the providing of prompt and efficient care and treatment, including care provided by physician assistants governed by the provisions of chapters 18.57A
and 18.71A RCW, acting under a supervising physician,
including chiropractic care, and including care provided by
licensed advanced registered nurse practitioners, to workers
injured during the course of their employment at the least cost
consistent with promptness and efficiency, without discrimination or favoritism, and with as great uniformity as the various and diverse surrounding circumstances and locations of
industries will permit and to that end shall, from time to time,
establish and adopt and supervise the administration of
printed forms, rules, regulations, and practices for the furnishing of such care and treatment: PROVIDED, That the
medical coverage decisions of the department do not constitute a "rule" as used in RCW 34.05.010(16), nor are such
decisions subject to the rule-making provisions of chapter
34.05 RCW except that criteria for establishing medical coverage decisions shall be adopted by rule after consultation
with the workers' compensation advisory committee established in RCW 51.04.110: PROVIDED FURTHER, That the
department may recommend to an injured worker particular
health care services and providers where specialized treatment is indicated or where cost effective payment levels or
rates are obtained by the department: AND PROVIDED
FURTHER, That the department may enter into contracts for
goods and services including, but not limited to, durable
medical equipment so long as statewide access to quality service is maintained for injured workers.
(2) The director shall, in consultation with interested persons, establish and, in his or her discretion, periodically
change as may be necessary, and make available a fee schedule of the maximum charges to be made by any physician,
surgeon, chiropractor, hospital, druggist, licensed advanced
registered nurse practitioner, physicians' assistants as defined
[Title 51 RCW—page 2]
in chapters 18.57A and 18.71A RCW, acting under a supervising physician or other agency or person rendering services
to injured workers. The department shall coordinate with
other state purchasers of health care services to establish as
much consistency and uniformity in billing and coding practices as possible, taking into account the unique requirements
and differences between programs. No service covered under
this title, including services provided to injured workers,
whether aliens or other injured workers, who are not residing
in the United States at the time of receiving the services, shall
be charged or paid at a rate or rates exceeding those specified
in such fee schedule, and no contract providing for greater
fees shall be valid as to the excess. The establishment of such
a schedule, exclusive of conversion factors, does not constitute "agency action" as used in RCW 34.05.010(3), nor does
such a fee schedule constitute a "rule" as used in RCW
34.05.010(16).
(3) The director or self-insurer, as the case may be, shall
make a record of the commencement of every disability and
the termination thereof and, when bills are rendered for the
care and treatment of injured workers, shall approve and pay
those which conform to the adopted rules, regulations, established fee schedules, and practices of the director and may
reject any bill or item thereof incurred in violation of the principles laid down in this section or the rules, regulations, or the
established fee schedules and rules and regulations adopted
under it. [2004 c 65 § 1; 1998 c 230 § 1; 1997 c 325 § 2; 1994
c 164 § 25. Prior: 1993 c 515 § 1; 1993 c 159 § 1; 1989 c 189
§ 1; 1986 c 200 § 8; 1980 c 14 § 1; prior: 1977 ex.s. c 350 §
2; 1977 ex.s. c 239 § 1; 1971 ex.s. c 289 § 74; 1961 c 23 §
51.04.030; prior: (i) 1917 c 28 § 6; RRS § 7715. (ii) 1919 c
129 § 3; 1917 c 29 § 7; RRS § 7716. (iii) 1923 c 136 § 10;
RRS § 7719.]
Report to legislature—2004 c 65: "By December 1, 2006, the department of labor and industries shall report to the senate committee on commerce and trade and the house committee on commerce and labor, or successor committees, on the implementation of this act, including but not limited
to the effects of this act on injured worker outcomes, claim costs, and disputed claims." [2004 c 65 § 17.]
Effective date—2004 c 65: "This act takes effect July 1, 2004." [2004
c 65 § 18.]
Expiration date—2004 c 65: "This act expires June 30, 2007." [2004
c 65 § 19.]
Severability—2004 c 65: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [2004 c 65 § 20.]
51.04.030
51.04.030 Medical aid—Rules—Maximum fees—
Records and bill payment. (Effective June 30, 2007.) (1)
The director shall supervise the providing of prompt and efficient care and treatment, including care provided by physician assistants governed by the provisions of chapters 18.57A
and 18.71A RCW, acting under a supervising physician, and
including chiropractic care, to workers injured during the
course of their employment at the least cost consistent with
promptness and efficiency, without discrimination or favoritism, and with as great uniformity as the various and diverse
surrounding circumstances and locations of industries will
permit and to that end shall, from time to time, establish and
adopt and supervise the administration of printed forms,
rules, regulations, and practices for the furnishing of such
(2004 Ed.)
General Provisions
care and treatment: PROVIDED, That the medical coverage
decisions of the department do not constitute a "rule" as used
in RCW 34.05.010(16), nor are such decisions subject to the
rule-making provisions of chapter 34.05 RCW except that
criteria for establishing medical coverage decisions shall be
adopted by rule after consultation with the workers' compensation advisory committee established in RCW 51.04.110:
PROVIDED FURTHER, That the department may recommend to an injured worker particular health care services and
providers where specialized treatment is indicated or where
cost effective payment levels or rates are obtained by the
department: AND PROVIDED FURTHER, That the department may enter into contracts for goods and services including, but not limited to, durable medical equipment so long as
statewide access to quality service is maintained for injured
workers.
(2) The director shall, in consultation with interested persons, establish and, in his or her discretion, periodically
change as may be necessary, and make available a fee schedule of the maximum charges to be made by any physician,
surgeon, chiropractor, hospital, druggist, physicians' assistants as defined in chapters 18.57A and 18.71A RCW, acting
under a supervising physician or other agency or person rendering services to injured workers. The department shall
coordinate with other state purchasers of health care services
to establish as much consistency and uniformity in billing
and coding practices as possible, taking into account the
unique requirements and differences between programs. No
service covered under this title, including services provided
to injured workers, whether aliens or other injured workers,
who are not residing in the United States at the time of receiving the services, shall be charged or paid at a rate or rates
exceeding those specified in such fee schedule, and no contract providing for greater fees shall be valid as to the excess.
The establishment of such a schedule, exclusive of conversion factors, does not constitute "agency action" as used in
RCW 34.05.010(3), nor does such a fee schedule constitute a
"rule" as used in RCW 34.05.010(16).
(3) The director or self-insurer, as the case may be, shall
make a record of the commencement of every disability and
the termination thereof and, when bills are rendered for the
care and treatment of injured workers, shall approve and pay
those which conform to the adopted rules, regulations, established fee schedules, and practices of the director and may
reject any bill or item thereof incurred in violation of the principles laid down in this section or the rules, regulations, or the
established fee schedules and rules and regulations adopted
under it. [1998 c 230 § 1; 1997 c 325 § 2; 1994 c 164 § 25.
Prior: 1993 c 515 § 1; 1993 c 159 § 1; 1989 c 189 § 1; 1986
c 200 § 8; 1980 c 14 § 1; prior: 1977 ex.s. c 350 § 2; 1977
ex.s. c 239 § 1; 1971 ex.s. c 289 § 74; 1961 c 23 § 51.04.030;
prior: (i) 1917 c 28 § 6; RRS § 7715. (ii) 1919 c 129 § 3;
1917 c 29 § 7; RRS § 7716. (iii) 1923 c 136 § 10; RRS §
7719.]
51.04.040
51.04.040 Subpoena power of director—Enforcement by superior court. The director and his or her authorized assistants shall have power to issue subpoenas to
enforce the attendance and testimony of witnesses and the
production and examination of books, papers, photographs,
tapes, and records before the department in connection with
(2004 Ed.)
51.04.070
any claim made to the department, any billing submitted to
the department, or the assessment or collection of premiums.
The superior court shall have the power to enforce any such
subpoena by proper proceedings. [1987 c 316 § 1; 1986 c
200 § 9; 1977 ex.s. c 323 § 1; 1961 c 23 § 51.04.040. Prior:
1915 c 188 § 7; RRS § 7699.]
Severability—1977 ex.s. c 323: "If any provision of this 1977 amendatory act, or its application to any person or circumstance is held invalid, the
remainder of the act, or the application of the provision to other persons or
circumstances is not affected." [1977 ex.s. c 323 § 29.]
Effective date—1977 ex.s. c 323: "This 1977 amendatory act is necessary for the immediate preservation of the public peace, health, and safety,
the support of the state government and its existing public institutions, and
shall take effect on July 1, 1977." [1977 ex.s. c 323 § 30.]
51.04.050
51.04.050 Physician or licensed advanced registered
nurse practitioner's testimony not privileged. (Expires
June 30, 2007.) In all hearings, actions or proceedings
before the department or the board of industrial insurance
appeals, or before any court on appeal from the board, any
physician or licensed advanced registered nurse practitioner
having theretofore examined or treated the claimant may be
required to testify fully regarding such examination or treatment, and shall not be exempt from so testifying by reason of
the relation of the physician or licensed advanced registered
nurse practitioner to patient. [2004 c 65 § 2; 1961 c 23 §
51.04.050. Prior: 1915 c 188 § 4; RRS § 7687.]
Report to legislature—Effective date—Expiration date—Severability—2004 c 65: See notes following RCW 51.04.030.
Nurse-patient privilege subject to RCW 51.04.050: RCW 5.62.030.
51.04.050
51.04.050 Physician's testimony not privileged.
(Effective June 30, 2007.) In all hearings, actions or proceedings before the department or the board of industrial
insurance appeals, or before any court on appeal from the
board, any physician having theretofore examined or treated
the claimant may be required to testify fully regarding such
examination or treatment, and shall not be exempt from so
testifying by reason of the relation of physician to patient.
[1961 c 23 § 51.04.050. Prior: 1915 c 188 § 4; RRS § 7687.]
Nurse-patient privilege subject to RCW 51.04.050: RCW 5.62.030.
51.04.060
51.04.060 No evasion of benefits or burdens. No
employer or worker shall exempt himself or herself from the
burden or waive the benefits of this title by any contract,
agreement, rule or regulation, and any such contract, agreement, rule or regulation shall be pro tanto void. [1977 ex.s. c
350 § 3; 1961 c 23 § 51.04.060. Prior: 1911 c 74 § 11; RRS
§ 7685.]
51.04.070
51.04.070 Minor worker is sui juris—Guardianship
expense. A minor shall be deemed sui juris for the purpose
of this title, and no other person shall have any cause of
action or right to compensation for an injury to such minor
worker, except as expressly provided in this title, but in the
event of any disability payments becoming due under this
title to a minor worker, under the age of eighteen, such disability payments shall be paid to his or her parent, guardian or
other person having legal custody of his or her person until he
or she reaches the age of eighteen. Upon the submission of
written authorization by any such parent, guardian, or other
[Title 51 RCW—page 3]
51.04.080
Title 51 RCW: Industrial Insurance
person, any such disability payments may be paid directly to
such injured worker under the age of eighteen years. If it is
necessary to appoint a legal guardian to receive such disability payments, there shall be paid from the accident fund or by
the self-insurer, as the case may be, toward the expenses of
such guardianship a sum not to exceed three hundred dollars.
[1980 c 14 § 2. Prior: 1977 ex.s. c 350 § 4; 1977 ex.s. c 323
§ 2; 1961 c 23 § 51.04.070; prior: 1959 c 308 § 1; 1957 c 70
§ 4; prior: 1927 c 310 § 5, part; 1919 c 131 § 5, part; 1911 c
74 § 6, part; RRS § 7680, part.]
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
51.04.080 Sending notices, orders, warrants to claimants. On all claims under this title, claimants' written notices,
orders, or warrants shall not be forwarded to, or in care of,
any representative of the claimant, but shall be forwarded
directly to the claimant until such time as there has been
entered an order on the claim appealable to the board of
industrial insurance appeals. [1972 ex.s. c 43 § 2; 1961 c 23
§ 51.04.080. Prior: 1959 c 308 § 2; 1957 c 70 § 5; prior:
1947 c 56 § 1, part; 1927 c 310 § 7, part; 1923 c 136 § 4, part;
1921 c 182 § 6, part; 1919 c 131 § 6, part; 1911 c 74 § 10,
part; Rem. Supp. 1947 § 7684, part.]
51.04.080
51.04.082 Notices and orders—Mail or personal service. Any notice or order required by this title to be mailed to
any employer may be served in the manner prescribed by law
for personal service of summons and complaint in the commencement of actions in the superior courts of the state, but if
the notice or order is mailed, it shall be addressed to the
address of the employer as shown by the records of the
department, or, if no such address is shown, to such address
as the department is able to ascertain by reasonable effort.
Failure of the employer to receive such notice or order
whether served or mailed shall not release the employer from
any tax or any increases or penalties thereon. [1986 c 9 § 2.]
51.04.082
51.04.085 Transmission of amounts payable. The
department may, at any time, on receipt of written authorization, transmit amounts payable to a claimant, beneficiary, or
any supplier of goods or services to the account of such person in a bank or other financial institution regulated by state
or federal authority. [1977 ex.s. c 323 § 26.]
51.04.085
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
51.04.090 Effect of adjudication of applicability. If
any employer shall be adjudicated to be outside the lawful
scope of this title, the title shall not apply to him or her or his
or her worker, or if any worker shall be adjudicated to be outside the lawful scope of this title because of remoteness of his
or her work from the hazard of his or her employer's work,
any such adjudication shall not impair the validity of this title
in other respects, and in every such case an accounting in
accordance with the justice of the case shall be had of moneys
received. If the provisions for the creation of the accident
fund, or the provisions of this title making the compensation
to the worker provided in it exclusive of any other remedy on
the part of the worker shall be held invalid the entire title shall
be thereby invalidated. In other respects an adjudication of
51.04.090
[Title 51 RCW—page 4]
invalidity of any part of this title shall not affect the validity
of the title as a whole or any other part thereof. [1977 ex.s. c
350 § 5; 1961 c 23 § 51.04.090. Prior: 1911 c 74 § 27; RRS
§ 7706.]
51.04.100
51.04.100 Statutes of limitation saved. If the provisions of this title relative to compensation for injuries to or
death of workers become invalid because of any adjudication,
or be repealed, the period intervening between the occurrence
of an injury or death, not previously compensated for under
this title by lump payment or completed monthly payments,
and such repeal or the rendition of the final adjudication of
invalidity shall not be computed as a part of the time limited
by law for the commencement of any action relating to such
injury or death: PROVIDED, That such action be commenced within one year after such repeal or adjudication; but
in any such action any sum paid out of the accident fund to
the worker on account of injury, to whom the action is prosecuted, shall be taken into account or disposed of as follows:
If the defendant employer shall have paid without delinquency into the accident fund the payment provided by this
title, such sums shall be credited upon the recovery as payment thereon, otherwise the sum shall not be so credited but
shall be deducted from the sum collected and be paid into the
said fund from which they had been previously disbursed.
[1977 ex.s. c 350 § 6; 1961 c 23 § 51.04.100. Prior: 1911 c
74 § 28; RRS § 7707.]
51.04.105
51.04.105 Continuation of medical aid contracts. The
obligations of all medical aid contracts approved by the
supervisor prior to the repeal of any section of this title pertaining to medical aid contracts shall continue until the expiration of such contracts notwithstanding any such repeal and
all provisions of this title pertaining to the operation of medical aid contracts and the control and supervision of such contracts which were in effect at the time of such approval shall,
notwithstanding any other provision of law, remain in full
force and effect. [1977 ex.s. c 323 § 25.]
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
51.04.110
51.04.110 Workers' compensation advisory committee. The director shall appoint a workers' compensation advisory committee composed of ten members: Three representing subject workers, three representing subject employers,
one representing self-insurers, one representing workers of
self-insurers, and two ex officio members, without a vote,
one of whom shall be the chairman of the board of industrial
appeals and the other the representative of the department.
The member representing the department shall be chairman.
This committee shall conduct a continuing study of any
aspects of workers' compensation as the committee shall
determine require their consideration. The committee shall
report its findings to the department or the board of industrial
insurance appeals for such action as deemed appropriate. The
members of the committee shall be appointed for a term of
three years commencing on July 1, 1971 and the terms of the
members representing the workers and employers shall be
staggered so that the director shall designate one member
from each such group initially appointed whose term shall
(2004 Ed.)
Definitions
expire on June 30, 1972 and one member from each such
group whose term shall expire on June 30, 1973. The members shall serve without compensation, but shall be entitled to
travel expenses as provided in RCW 43.03.050 and
43.03.060 as now existing or hereafter amended. The committee may hire such experts, if any, as it shall require to discharge its duties, and may utilize such personnel and facilities
of the department and board of industrial insurance appeals
as it shall need without charge. All expenses of this committee shall be paid by the department. [1982 c 109 § 2; 1980 c
14 § 3. Prior: 1977 ex.s. c 350 § 7; 1977 c 75 § 78; 1975-'76
2nd ex.s. c 34 § 150; 1975 ex.s. c 224 § 1; 1972 ex.s. c 43 §
37; 1971 ex.s. c 289 § 67.]
Effective date—Severability—1975-'76 2nd ex.s. c 34: See notes following RCW 2.08.115.
Effective date—1975 1st ex.s. c 224: "This 1975 amendatory act shall
take effect on July 1, 1975." [1975 1st ex.s. c 224 § 20.]
Managed care pilot projects: RCW 43.72.860.
51.04.120 Certificate of coverage required—Contents. Any employer other than a self-insurer subject to this
title shall, under such rules as the department shall prescribe,
apply for and obtain from the department a certificate of coverage. The certificate shall be personal and nontransferable
and shall be valid as long as the employer continues in business and pays the taxes due the state. In case the employer
maintains more than one place of business, a separate certificate of coverage for each place at which business is transacted shall be required. Each certificate shall be numbered
and shall show the name, residence, and place and character
of business of the employer and such other information as the
department deems necessary and shall be posted conspicuously at the place of business for which it is issued. Where a
place of business of the employer is changed, the employer
must notify the department within thirty days of the new
address and a new certificate shall be issued for the new place
of business. No employer may engage in any business for
which taxes are due under this title without having a certificate of coverage in compliance with this section, except that
the department, by general rule, may provide for the issuance
of a certificate of coverage to employers with temporary
places of business. [1986 c 9 § 1.]
51.04.120
Chapter 51.08
necessary to accomplish the purposes of this section. [1997 c
109 § 1; 1951 c 144 § 1.]
Severability—1997 c 109: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1997 c 109 § 4.]
51.04.140 Year 2000 failure—No interest or penalties
for failure to pay premium. (Expires December 31, 2006.)
(1) No interest or penalties shall be imposed on any employer
because of the failure to pay any premium required by this
title to be made to the state treasury for the accident fund, the
medical aid fund, the supplemental pension fund, or any
other fund created under this title if the employer establishes
that:
(a) The failure to pay was caused, in whole or in part, by
a year 2000 failure associated with an electronic computing
device;
(b) The year 2000 failure being asserted was not proximately caused by a failure of the employer to update an electronic computing device, that is under his or her dominion or
control, to be year 2000 compliant; and
(c) If it were not for the year 2000 failure, the employer
would have been able to satisfy the payment of premiums in
a timely manner.
Payment of such premiums shall be made within thirty
days after the year 2000 failure has been corrected or reasonably should have been corrected.
(2)(a) The definitions in RCW 4.22.080 apply to this section unless the context clearly requires otherwise.
(b) As used in this section, unless the context clearly
requires otherwise, "employer" means a natural person or a
small business as defined in RCW 19.85.020.
(3) This section does not affect those transactions upon
which a default has occurred before any disruption of financial or data transfer operations attributable to a year 2000 failure.
(4) This section does not apply to any claim or cause of
action filed after December 31, 2003.
(5) This section expires December 31, 2006. [1999 c
369 § 4.]
51.04.140
Effective date—1999 c 369: See note following RCW 4.22.080.
Engaging in business without certificate of coverage: RCW 51.48.103.
Chapter 51.08
51.04.130 Industrial insurance coverage for Hanford
workers—Special agreements. The department of labor
and industries upon the request of the secretary of defense of
the United States or the secretary of the United States department of energy, may in its discretion approve special insuring
agreements providing industrial insurance coverage for
workers engaged in the performance of work, either directly
or indirectly, for the United States, regarding projects and
contracts at the Hanford Nuclear Reservation. The agreements need not conform to the requirements specified in the
industrial insurance law of this state if the department finds
that the application of the plan will effectively aid the
national interest. The department may also approve or direct
changes or modifications of the agreements as it deems necessary.
An agreement entered into under this section remains in
full force and effect for as long as the department deems it
51.04.130
(2004 Ed.)
Chapter 51.08 RCW
DEFINITIONS
Sections
51.08.010
51.08.012
51.08.013
51.08.014
51.08.015
51.08.018
51.08.020
51.08.030
51.08.040
51.08.050
51.08.060
51.08.070
51.08.095
51.08.100
51.08.110
51.08.140
51.08.142
Meaning of words.
"Accredited school."
"Acting in the course of employment."
"Agriculture."
"Amount," "payment," "premium," "contribution," "assessment."
"Average monthly wage."
"Beneficiary."
"Child."
"Department."
"Dependent."
"Director."
"Employer"—Exception.
"Health services provider"—"Provider."
"Injury."
"Invalid."
"Occupational disease."
"Occupational disease"—Exclusion of mental conditions
caused by stress.
[Title 51 RCW—page 5]
51.08.010
51.08.150
51.08.160
51.08.173
51.08.175
51.08.177
51.08.178
51.08.180
51.08.185
51.08.195
Title 51 RCW: Industrial Insurance
"Permanent partial disability."
"Permanent total disability."
"Self-insurer."
"State fund"—"State of Washington industrial insurance
fund."
"Successor."
"Wages"—Monthly wages as basis of compensation—Computation thereof.
"Worker"—Exceptions.
"Employee."
Employer and worker—Alternative exception.
51.08.010
51.08.010 Meaning of words. Unless the context indicates otherwise, words used in this title shall have the meaning given in this chapter. [1961 c 23 § 51.08.010. Prior: 1939
c 41 § 2, part; 1929 c 132 § 1, part; 1927 c 310 § 2, part; 1921
c 182 § 2, part; 1919 c 131 § 2, part; 1917 c 120 § 1, part;
1911 c 74 § 3, part; RRS § 7675, part.]
51.08.012
51.08.012 "Accredited school." For the purposes of
this title, "accredited school" means a school or course of
instruction which is:
(1) Approved by the state superintendent of public
instruction, the state board of education, the *state board for
community college education, or the state division of vocational education of the **coordinating council for occupational education; or
(2) Regulated or licensed as to course content by any
agency of the state or under any occupational licensing act of
the state, or recognized by the apprenticeship council under
an agreement registered with the apprenticeship council pursuant to chapter 49.04 RCW. [1975 1st ex.s. c 224 § 2; 1969
ex.s. c 77 § 3.]
Reviser's note: *(1) The state board for community college education
was renamed the state board for community and technical colleges by 1991
c 238 § 30.
**(2) The coordinating council for occupational education was abolished by 1975 1st ex.s. c 174 § 9.
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
51.08.013
51.08.013 "Acting in the course of employment." (1)
"Acting in the course of employment" means the worker acting at his or her employer's direction or in the furtherance of
his or her employer's business which shall include time spent
going to and from work on the jobsite, as defined in RCW
51.32.015 and 51.36.040, insofar as such time is immediate
to the actual time that the worker is engaged in the work process in areas controlled by his or her employer, except parking area. It is not necessary that at the time an injury is sustained by a worker he or she is doing the work on which his
or her compensation is based or that the event is within the
time limits on which industrial insurance or medical aid premiums or assessments are paid.
(2) "Acting in the course of employment" does not
include:
(a) Time spent going to or coming from the employer's
place of business in an alternative commute mode, notwithstanding that the employer (i) paid directly or indirectly, in
whole or in part, the cost of a fare, pass, or other expense
associated with the alternative commute mode; (ii) promoted
and encouraged employee use of one or more alternative
commute modes; or (iii) otherwise participated in the provision of the alternative commute mode.
[Title 51 RCW—page 6]
(b) An employee's participation in social activities, recreational or athletic activities, events, or competitions, and
parties or picnics, whether or not the employer pays some or
all of the costs thereof, unless: (i) The participation is during
the employee's working hours, not including paid leave; (ii)
the employee was paid monetary compensation by the
employer to participate; or (iii) the employee was ordered or
directed by the employer to participate or reasonably
believed the employee was ordered or directed to participate.
(3) "Alternative commute mode" means (a) a carpool or
vanpool arrangement whereby a group of at least two but not
more than fifteen persons including passengers and driver, is
transported between their places of abode or termini near
those places, and their places of employment or educational
or other institutions, where the driver is also on the way to or
from his or her place of employment or educational or other
institution; (b) a bus, ferry, or other public transportation service; or (c) a nonmotorized means of commuting such as
bicycling or walking. [1997 c 250 § 10; 1995 c 179 § 1; 1993
c 138 § 1; 1979 c 111 § 15; 1977 ex.s. c 350 § 8; 1961 c 107
§ 3.]
Severability—1979 c 111: See note following RCW 46.74.010.
51.08.014 "Agriculture." "Agriculture" means the
business of growing or producing any agricultural or horticultural produce or crop, including the raising of any animal,
bird, or insect, or the milk, eggs, wool, fur, meat, honey, or
other substances obtained therefrom. [1971 ex.s. c 289 § 75.]
51.08.014
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.08.015 "Amount," "payment," "premium,"
"contribution," "assessment." Wherever and whenever in
any of the provisions of this title relating to any payments by
an employer or worker the words "amount" and/or
"amounts," "payment" and/or "payments," "premium" and/or
"premiums," "contribution" and/or "contributions," and
"assessment" and/or "assessments" appear said words shall
be construed to mean taxes, which are the money payments
by an employer or worker which are required by this title to
be made to the state treasury for the accident fund, the medical aid fund, the supplemental pension fund, or any other
fund created by this title. [1977 ex.s. c 350 § 9; 1972 ex.s. c
43 § 3; 1961 c 23 § 51.08.015. Prior: 1959 c 308 § 25.]
51.08.015
51.08.018 "Average monthly wage." For purposes of
this title, the average monthly wage in the state shall be the
average annual wage as determined under RCW 50.04.355 as
now or hereafter amended divided by twelve. [1977 ex.s. c
323 § 3; 1971 ex.s. c 289 § 15.]
51.08.018
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.08.020 "Beneficiary." "Beneficiary" means a husband, wife, child, or dependent of a worker in whom shall
vest a right to receive payment under this title: PROVIDED,
That a husband or wife of an injured worker, living separate
and apart in a state of abandonment, regardless of the party
responsible therefor, for more than one year at the time of the
51.08.020
(2004 Ed.)
Definitions
injury or subsequently, shall not be a beneficiary. A spouse
who has lived separate and apart from the other spouse for the
period of two years and who has not, during that time,
received, or attempted by process of law to collect, funds for
maintenance, shall be deemed living in a state of abandonment. [1977 ex.s. c 350 § 10; 1973 1st ex.s. c 154 § 91; 1961
c 23 § 51.08.020. Prior: 1957 c 70 § 6; prior: (i) 1939 c 41 §
2, part; 1929 c 132 § 1, part; 1927 c 310 § 2, part; 1921 c 182
§ 2, part; 1919 c 131 § 2, part; 1917 c 120 § 1, part; 1911 c 74
§ 3, part; RRS § 7675, part. (ii) 1949 c 219 § 1, part; 1947 c
246 § 1, part; 1929 c 132 § 2, part; 1927 c 310 § 4, part; 1923
c 136 § 2, part; 1919 c 131 § 4, part; 1917 c 28 § 1, part; 1913
c 148 § 1, part; 1911 c 74 § 5, part; Rem. Supp. 1949 § 7679,
part.]
Severability—1973 1st ex.s. c 154: See note following RCW 2.12.030.
51.08.030
51.08.030 "Child." "Child" means every natural born
child, posthumous child, stepchild, child legally adopted
prior to the injury, child born after the injury where conception occurred prior to the injury, and dependent child in the
legal custody and control of the worker, all while under the
age of eighteen years, or under the age of twenty-three years
while permanently enrolled at a full time course in an accredited school, and over the age of eighteen years if the child is
a dependent as a result of a physical, mental, or sensory handicap. [1986 c 293 § 1; 1980 c 14 § 4. Prior: 1977 ex.s. c 323
§ 4; 1977 ex.s. c 80 § 36; 1975-'76 2nd ex.s. c 42 § 37; 1972
ex.s. c 65 § 1; 1969 ex.s. c 77 § 1; 1961 c 23 § 51.08.030;
prior: 1957 c 70 § 7; prior: (i) 1939 c 41 § 2, part; 1929 c 132
§ 1, part; 1927 c 310 § 2, part; 1921 c 182 § 2, part; 1919 c
131 § 2, part; 1917 c 120 § 1, part; 1911 c 74 § 3, part; RRS
§ 7675, part. (ii) 1941 c 209 § 3, part; Rem. Supp. 1941 §
7679, part.]
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
Purpose—Intent—Severability—1977 ex.s. c 80: See notes following RCW 4.16.190.
51.08.040
51.08.040 "Department." "Department" means
department of labor and industries. [1961 c 23 § 51.08.040.]
Department of labor and industries: Chapter 43.22 RCW.
51.08.050
51.08.050 "Dependent." "Dependent" means any of
the following named relatives of a worker whose death
results from any injury and who leaves surviving no widow,
widower, or child, viz: Father, mother, grandfather, grandmother, stepfather, stepmother, grandson, granddaughter,
brother, sister, half-sister, half-brother, niece, nephew, who at
the time of the accident are actually and necessarily dependent in whole or in part for their support upon the earnings of
the worker. [1997 c 325 § 6; 1977 ex.s. c 350 § 11; 1961 c 23
§ 51.08.050. Prior: 1957 c 70 § 8; prior: 1939 c 41 § 2, part;
1929 c 132 § 1, part; 1927 c 310 § 2, part; 1921 c 182 § 2,
part; 1919 c 131 § 2, part; 1917 c 120 § 1, part; 1911 c 74 § 3,
part; RRS § 7675, part.]
51.08.060
51.08.060 "Director." "Director" means the director of
labor and industries. [1961 c 23 § 51.08.060.]
(2004 Ed.)
51.08.100
51.08.070
51.08.070 "Employer"—Exception. "Employer"
means any person, body of persons, corporate or otherwise,
and the legal representatives of a deceased employer, all
while engaged in this state in any work covered by the provisions of this title, by way of trade or business, or who contracts with one or more workers, the essence of which is the
personal labor of such worker or workers. Or as a separate
alternative, persons or entities are not employers when they
contract or agree to remunerate the services performed by an
individual who meets the tests set forth in subsections (1)
through (6) of RCW 51.08.195.
For the purposes of this title, a contractor registered
under chapter 18.27 RCW or licensed under chapter 19.28
RCW is not an employer when:
(1) Contracting with any other person, firm, or corporation currently engaging in a business which is registered
under chapter 18.27 RCW or licensed under chapter 19.28
RCW;
(2) The person, firm, or corporation has a principal place
of business which would be eligible for a business deduction
for internal revenue service tax purposes other than that furnished by the contractor for which the business has contracted to furnish services;
(3) The person, firm, or corporation maintains a separate
set of books or records that reflect all items of income and
expenses of the business; and
(4) The work which the person, firm, or corporation has
contracted to perform is:
(a) The work of a contractor as defined in RCW
18.27.010; or
(b) The work of installing wires or equipment to convey
electric current or installing apparatus to be operated by such
current as it pertains to the electrical industry as described in
chapter 19.28 RCW. [1991 c 246 § 2; 1981 c 128 § 1; 1977
ex.s. c 350 § 12; 1971 ex.s. c 289 § 1; 1961 c 23 § 51.08.070.
Prior: 1957 c 70 § 9; prior: (i) 1939 c 41 § 2, part; 1929 c 132
§ 1, part; 1927 c 310 § 2, part; 1921 c 182 § 2, part; 1919 c
131 § 2, part; 1917 c 120 § 1, part; 1911 c 74 § 3, part; RRS
§ 7675, part. (ii) 1949 c 219 § 1, part; 1947 c 246 § 1, part;
1929 c 132 § 2, part; 1927 c 310 § 4, part; 1923 c 136 § 2,
part; 1919 c 131 § 4, part; 1917 c 28 § 1, part; 1913 c 148 § 1,
part; 1911 c 74 § 5, part; Rem. Supp. 1949 § 7679, part.]
Effective date—Conflict with federal requirements—1991 c 246:
See notes following RCW 51.08.195.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.08.095
51.08.095 "Health services provider"—"Provider."
"Health services provider" or "provider" means any person,
firm, corporation, partnership, association, agency, institution, or other legal entity providing any kind of services
related to the treatment of an industrially injured worker.
[1986 c 200 § 12.]
51.08.100
51.08.100 "Injury." "Injury" means a sudden and tangible happening, of a traumatic nature, producing an immediate or prompt result, and occurring from without, and such
physical conditions as result therefrom. [1961 c 23 §
51.08.100. Prior: 1959 c 308 § 3; 1957 c 70 § 12; prior: 1939
c 41 § 2, part; 1929 c 132 § 1, part; 1927 c 310 § 2, part; 1921
[Title 51 RCW—page 7]
51.08.110
Title 51 RCW: Industrial Insurance
c 182 § 2, part; 1919 c 131 § 2, part; 1917 c 120 § 1, part;
1911 c 74 § 3, part; RRS § 7675, part.]
51.08.110
51.08.110 "Invalid." "Invalid" means one who is physically or mentally incapacitated from earning. [1961 c 23 §
51.08.110. Prior: 1957 c 70 § 13; prior: 1939 c 41 § 2, part;
1929 c 132 § 1, part; 1927 c 310 § 2, part; 1921 c 182 § 2,
part; 1919 c 131 § 2, part; 1917 c 120 § 1, part; 1911 c 74 § 3,
part; RRS § 7675, part.]
51.08.140
51.08.140 "Occupational disease." "Occupational disease" means such disease or infection as arises naturally and
proximately out of employment under the mandatory or elective adoption provisions of this title. [1961 c 23 § 51.08.140.
Prior: 1959 c 308 § 4; 1957 c 70 § 16; prior: 1951 c 236 § 1;
1941 c 235 § 1, part; 1939 c 135 § 1, part; 1937 c 212 § 1,
part; Rem. Supp. 1941 § 7679-1, part.]
51.08.142
51.08.142 "Occupational disease"—Exclusion of
mental conditions caused by stress. The department shall
adopt a rule pursuant to chapter 34.05 RCW that claims based
on mental conditions or mental disabilities caused by stress
do not fall within the definition of occupational disease in
RCW 51.08.140. [1988 c 161 § 16.]
industrial insurance obligation of employers. The terms "state
fund" and "state of Washington industrial insurance fund"
shall be deemed synonymous when applied to the functions
of the department connected with the insuring of employers
who secure the payment of industrial insurance benefits
through the state. The director shall manage the state fund
and the state of Washington industrial insurance fund and
shall have such powers as are necessary to carry out its functions and may reinsure any risk insured by the state fund.
[1977 ex.s. c 323 § 5; 1972 ex.s. c 43 § 5; 1971 ex.s. c 289 §
88.]
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.08.177
51.08.177 "Successor." "Successor" means any person
to whom a taxpayer quitting, selling out, exchanging, or disposing of a business sells or otherwise conveys, directly or
indirectly, in bulk and not in the ordinary course of the taxpayer's business, a major part of the property, whether real or
personal, tangible or intangible, of the taxpayer. [2004 c 243
§ 1; 1986 c 9 § 3.]
Adoption of rules—2004 c 243: "The department shall adopt rules to
implement this act." [2004 c 243 § 10.]
51.08.150
51.08.150 "Permanent partial disability." "Permanent partial disability" means the loss of either one foot, one
leg, one hand, one arm, one eye, one or more fingers, one or
more toes, any dislocation where ligaments were severed
where repair is not complete, or any other injury known in
surgery to be permanent partial disability. [1961 c 23 §
51.08.150. Prior: 1957 c 70 § 17; prior: 1949 c 219 § 1, part;
1947 c 246 § 1, part; 1929 c 132 § 2, part; 1927 c 310 § 4,
part; 1923 c 136 § 2, part; 1919 c 131 § 4, part; 1917 c 28 § 1,
part; 1913 c 148 § 1, part; 1911 c 74 § 5, part; Rem. Supp.
1949 § 7679, part.]
51.08.160
51.08.160 "Permanent total disability." "Permanent
total disability" means loss of both legs, or arms, or one leg
and one arm, total loss of eyesight, paralysis or other condition permanently incapacitating the worker from performing
any work at any gainful occupation. [1977 ex.s. c 350 § 13;
1961 c 23 § 51.08.160. Prior: 1957 c 70 § 18; prior: 1949 c
219 § 1, part; 1947 c 246 § 1, part; 1929 c 132 § 2, part; 1927
c 310 § 4, part; 1923 c 136 § 2, part; 1919 c 131 § 4, part;
1917 c 28 § 1, part; 1913 c 148 § 1, part; 1911 c 74 § 5, part;
Rem. Supp. 1949 § 7679, part.]
51.08.173
51.08.173 "Self-insurer." "Self-insurer" means an
employer or group of employers which has been authorized
under this title to carry its own liability to its employees covered by this title. [1983 c 174 § 1; 1971 ex.s. c 289 § 80.]
Effective date—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.08.175
51.08.175 "State fund"—"State of Washington
industrial insurance fund." "State fund" means those funds
held by the state or any agency thereof for the purposes of this
title. The "state of Washington industrial insurance fund"
means the department when acting as the agency to insure the
[Title 51 RCW—page 8]
51.08.178
51.08.178 "Wages"—Monthly wages as basis of compensation—Computation thereof. (1) For the purposes of
this title, the monthly wages the worker was receiving from
all employment at the time of injury shall be the basis upon
which compensation is computed unless otherwise provided
specifically in the statute concerned. In cases where the
worker's wages are not fixed by the month, they shall be
determined by multiplying the daily wage the worker was
receiving at the time of the injury:
(a) By five, if the worker was normally employed one
day a week;
(b) By nine, if the worker was normally employed two
days a week;
(c) By thirteen, if the worker was normally employed
three days a week;
(d) By eighteen, if the worker was normally employed
four days a week;
(e) By twenty-two, if the worker was normally employed
five days a week;
(f) By twenty-six, if the worker was normally employed
six days a week;
(g) By thirty, if the worker was normally employed
seven days a week.
The term "wages" shall include the reasonable value of
board, housing, fuel, or other consideration of like nature
received from the employer as part of the contract of hire, but
shall not include overtime pay except in cases under subsection (2) of this section. However, tips shall also be considered
wages only to the extent such tips are reported to the
employer for federal income tax purposes. The daily wage
shall be the hourly wage multiplied by the number of hours
the worker is normally employed. The number of hours the
worker is normally employed shall be determined by the
department in a fair and reasonable manner, which may
include averaging the number of hours worked per day.
(2004 Ed.)
Definitions
(2) In cases where (a) the worker's employment is exclusively seasonal in nature or (b) the worker's current employment or his or her relation to his or her employment is essentially part-time or intermittent, the monthly wage shall be
determined by dividing by twelve the total wages earned,
including overtime, from all employment in any twelve successive calendar months preceding the injury which fairly
represent the claimant's employment pattern.
(3) If, within the twelve months immediately preceding
the injury, the worker has received from the employer at the
time of injury a bonus as part of the contract of hire, the average monthly value of such bonus shall be included in determining the worker's monthly wages.
(4) In cases where a wage has not been fixed or cannot be
reasonably and fairly determined, the monthly wage shall be
computed on the basis of the usual wage paid other employees engaged in like or similar occupations where the wages
are fixed. [1988 c 161 § 12; 1980 c 14 § 5. Prior: 1977 ex.s.
c 350 § 14; 1977 ex.s. c 323 § 6; 1971 ex.s. c 289 § 14.]
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.08.195
current as it pertains to the electrical industry as described in
chapter 19.28 RCW.
(3) Any person, firm, or corporation registered under
chapter 18.27 RCW or licensed under chapter 19.28 RCW
including those performing work for any contractor registered under chapter 18.27 RCW or licensed under chapter
19.28 RCW is a worker when the contractor supervises or
controls the means by which the result is accomplished or the
manner in which the work is performed.
(4) For the purposes of this title, any person participating
as a driver or back-up driver in commuter ride sharing, as
defined in RCW 46.74.010(1), is not a worker while driving
a ride-sharing vehicle on behalf of the owner or lessee of the
vehicle. [1991 c 246 § 3; 1987 c 175 § 3; 1983 c 97 § 1; 1982
c 80 § 1; 1981 c 128 § 2; 1977 ex.s. c 350 § 15; 1961 c 23 §
51.08.180. Prior: 1957 c 70 § 20; prior: (i) 1939 c 41 § 2,
part; 1929 c 132 § 1, part; 1927 c 310 § 2, part; 1921 c 182 §
2, part; 1919 c 131 § 2, part; 1917 c 120 § 1, part; 1911 c 74
§ 3, part; RRS § 7675, part. (ii) 1937 c 211 § 2; RRS §
7674-1.]
Effective date—Conflict with federal requirements—1991 c 246:
See notes following RCW 51.08.195.
51.08.185 "Employee." "Employee" shall have the
same meaning as "worker" when the context would so indicate, and shall include all officers of the state, state agencies,
counties, municipal corporations, or other public corporations, or political subdivisions. [1977 ex.s. c 350 § 16; 1972
ex.s. c 43 § 4.]
51.08.185
51.08.180
51.08.180 "Worker"—Exceptions. (1) "Worker"
means every person in this state who is engaged in the
employment of an employer under this title, whether by way
of manual labor or otherwise in the course of his or her
employment; also every person in this state who is engaged in
the employment of or who is working under an independent
contract, the essence of which is his or her personal labor for
an employer under this title, whether by way of manual labor
or otherwise, in the course of his or her employment, or as a
separate alternative, a person is not a worker if he or she
meets the tests set forth in subsections (1) through (6) of
RCW 51.08.195: PROVIDED, That a person is not a worker
for the purpose of this title, with respect to his or her activities
attendant to operating a truck which he or she owns, and
which is leased to a common or contract carrier.
(2) For the purposes of this title, any person, firm, or corporation currently engaging in a business which is registered
under chapter 18.27 RCW or licensed under chapter 19.28
RCW is not a worker when:
(a) Contracting to perform work for any contractor registered under chapter 18.27 RCW or licensed under chapter
19.28 RCW;
(b) The person, firm, or corporation has a principal place
of business which would be eligible for a business deduction
for internal revenue service tax purposes other than that furnished by the contractor for which the business has contracted to furnish services;
(c) The person, firm, or corporation maintains a separate
set of books or records that reflect all items of income and
expenses of the business; and
(d) The work which the person, firm, or corporation has
contracted to perform is:
(i) The work of a contractor as defined in RCW
18.27.010; or
(ii) The work of installing wires or equipment to convey
electric current or installing apparatus to be operated by such
(2004 Ed.)
51.08.195 Employer and worker—Alternative exception. As a separate alternative to the definition of "employer"
under RCW 51.08.070 and the definition of "worker" under
RCW 51.08.180, services performed by an individual for
remuneration shall not constitute employment subject to this
title if it is shown that:
(1) The individual has been and will continue to be free
from control or direction over the performance of the service,
both under the contract of service and in fact; and
(2) The service is either outside the usual course of business for which the service is performed, or the service is performed outside all of the places of business of the enterprise
for which the service is performed, or the individual is
responsible, both under the contract and in fact, for the costs
of the principal place of business from which the service is
performed; and
(3) The individual is customarily engaged in an independently established trade, occupation, profession, or business,
of the same nature as that involved in the contract of service,
or the individual has a principal place of business for the
business the individual is conducting that is eligible for a
business deduction for federal income tax purposes; and
(4) On the effective date of the contract of service, the
individual is responsible for filing at the next applicable filing period, both under the contract of service and in fact, a
schedule of expenses with the internal revenue service for the
type of business the individual is conducting; and
(5) On the effective date of the contract of service, or
within a reasonable period after the effective date of the contract, the individual has established an account with the
department of revenue, and other state agencies as required
51.08.195
[Title 51 RCW—page 9]
Chapter 51.12
Title 51 RCW: Industrial Insurance
by the particular case, for the business the individual is conducting for the payment of all state taxes normally paid by
employers and businesses and has registered for and received
a unified business identifier number from the state of Washington; and
(6) On the effective date of the contract of service, the
individual is maintaining a separate set of books or records
that reflect all items of income and expenses of the business
which the individual is conducting. [1991 c 246 § 1.]
Effective date—1991 c 246: "This act shall take effect January 1,
1992." [1991 c 246 § 10.]
Conflict with federal requirements—1991 c 246: "If any part of this
act is found to be in conflict with federal requirements which are a prescribed
condition to the allocation of federal funds to the state or the eligibility of
employers in this state for federal unemployment tax credits, the conflicting
part of this act is hereby declared to be inoperative solely to the extent of the
conflict, and such finding or determination shall not affect the operation of
the remainder of this act. The rules under this act shall meet federal requirements which are a necessary condition to the receipt of federal funds by the
state or the granting of federal unemployment tax credits to employers in this
state." [1991 c 246 § 9.]
Chapter 51.12 RCW
EMPLOYMENTS AND OCCUPATIONS COVERED
Chapter 51.12
Sections
51.12.010
51.12.020
51.12.025
51.12.035
51.12.045
51.12.050
51.12.060
51.12.070
51.12.080
51.12.090
51.12.095
51.12.100
51.12.102
51.12.110
51.12.120
51.12.130
51.12.140
51.12.150
51.12.160
51.12.170
Employments included—Declaration of policy.
Employments excluded.
Persons working on parents' family farms—Optional exclusion from coverage.
Volunteers.
Offenders performing community restitution.
Public entity work—Partnerships with volunteer groups and
businesses for community improvement projects.
Federal projects.
Work done by contract—Subcontractors.
Railway employees.
Intrastate and interstate commerce.
Common carrier employees—Owners and operators of trucks.
Maritime occupations—Segregation of payrolls—Common
enterprise.
Maritime workers—Asbestos-related disease.
Elective adoption—Withdrawal—Cancellation.
Extraterritorial coverage.
Registered apprentices or trainees.
Volunteer law enforcement officers.
Musicians and entertainers.
Foreign degree-granting institutions—Employee services in
country of domicile.
Student volunteers.
Ferry system employees: RCW 47.64.070.
Health and safety of underground workers: Chapter 49.24 RCW.
51.12.010
51.12.010 Employments included—Declaration of
policy. There is a hazard in all employment and it is the purpose of this title to embrace all employments which are
within the legislative jurisdiction of the state.
This title shall be liberally construed for the purpose of
reducing to a minimum the suffering and economic loss arising from injuries and/or death occurring in the course of
employment. [1972 ex.s. c 43 § 6; 1971 ex.s. c 289 § 2; 1961
c 23 § 51.12.010. Prior: 1959 c 55 § 1; 1955 c 74 § 2; prior:
(i) 1947 c 281 § 1, part; 1943 c 210 § 1, part; 1939 c 41 § 1,
part; 1937 c 211 § 1, part; 1927 c 310 § 1, part; 1921 c 182 §
1, part; 1919 c 131 § 1, part; 1911 c 74 § 2, part; Rem. Supp.
1947 § 7674, part. (ii) 1923 c 128 § 1, part; RRS § 7674a,
part.]
[Title 51 RCW—page 10]
51.12.020
51.12.020 Employments excluded. The following are
the only employments which shall not be included within the
mandatory coverage of this title:
(1) Any person employed as a domestic servant in a private home by an employer who has less than two employees
regularly employed forty or more hours a week in such
employment.
(2) Any person employed to do gardening, maintenance,
or repair, in or about the private home of the employer. For
the purposes of this subsection, "maintenance" means the
work of keeping in proper condition, "repair" means to
restore to sound condition after damage, and "private home"
means a person's place of residence.
(3) A person whose employment is not in the course of
the trade, business, or profession of his or her employer and
is not in or about the private home of the employer.
(4) Any person performing services in return for aid or
sustenance only, received from any religious or charitable
organization.
(5) Sole proprietors or partners.
(6) Any child under eighteen years of age employed by
his or her parent or parents in agricultural activities on the
family farm.
(7) Jockeys while participating in or preparing horses for
race meets licensed by the Washington horse racing commission pursuant to chapter 67.16 RCW.
(8)(a) Except as otherwise provided in (b) of this subsection, any bona fide officer of a corporation voluntarily elected
or voluntarily appointed in accordance with the articles of
incorporation or bylaws of the corporation, who at all times
during the period involved is also a bona fide director, and
who is also a shareholder of the corporation. Only such officers who exercise substantial control in the daily management
of the corporation and whose primary responsibilities do not
include the performance of manual labor are included within
this subsection.
(b) Alternatively, a corporation that is not a "public company" as defined in *RCW 23B.01.400(21) may exempt eight
or fewer bona fide officers, who are voluntarily elected or
voluntarily appointed in accordance with the articles of incorporation or bylaws of the corporation and who exercise substantial control in the daily management of the corporation,
from coverage under this title without regard to the officers'
performance of manual labor if the exempted officer is a
shareholder of the corporation, or may exempt any number of
officers if all the exempted officers are related by blood
within the third degree or marriage. If a corporation that is not
a "public company" elects to be covered under subsection
(8)(a) of this section, the corporation's election must be made
on a form prescribed by the department and under such reasonable rules as the department may adopt.
(c) Determinations respecting the status of persons performing services for a corporation shall be made, in part, by
reference to Title 23B RCW and to compliance by the corporation with its own articles of incorporation and bylaws. For
the purpose of determining coverage under this title, substance shall control over form, and mandatory coverage
under this title shall extend to all workers of this state, regardless of honorary titles conferred upon those actually serving
as workers.
(2004 Ed.)
Employments and Occupations Covered
(d) A corporation may elect to cover officers who are
exempted by this subsection in the manner provided by RCW
51.12.110.
(9) Services rendered by a musician or entertainer under
a contract with a purchaser of the services, for a specific
engagement or engagements when such musician or entertainer performs no other duties for the purchaser and is not
regularly and continuously employed by the purchaser. A
purchaser does not include the leader of a group or recognized entity who employs other than on a casual basis musicians or entertainers.
(10) Services performed by a newspaper carrier selling
or distributing newspapers on the street or from house to
house.
(11) Services performed by an insurance agent, insurance broker, or insurance solicitor, as defined in RCW
48.17.010, 48.17.020, and 48.17.030, respectively.
(12) Services performed by a booth renter as defined in
**RCW 18.16.020. However, a person exempted under this
subsection may elect coverage under RCW 51.32.030.
(13) Members of a limited liability company, if either:
(a) Management of the company is vested in its members, and the members for whom exemption is sought would
qualify for exemption under subsection (5) of this section
were the company a sole proprietorship or partnership; or
(b) Management of the company is vested in one or more
managers, and the members for whom the exemption is
sought are managers who would qualify for exemption under
subsection (8) of this section were the company a corporation. [1999 c 68 § 1; 1997 c 314 § 18. Prior: 1991 c 324 § 18;
1991 c 246 § 4; 1987 c 316 § 2; 1983 c 252 § 1; 1982 c 63 §
15; 1981 c 128 § 3; 1979 c 128 § 1; 1977 ex.s. c 323 § 7; 1973
c 124 § 1; 1972 ex.s. c 43 § 7; 1971 ex.s. c 289 § 3; 1961 c 23
§ 51.12.020; prior: 1955 c 74 § 3; prior: 1947 c 281 § 1, part;
1943 c 210 § 1, part; 1939 c 41 § 1, part; 1937 c 211 § 1, part;
1927 c 310 § 1, part; 1921 c 182 § 1, part; 1919 c 131 § 1,
part; 1911 c 74 § 2, part; Rem. Supp. 1947 § 7674, part.]
Reviser's note: *(1) RCW 23B.01.400 was amended by 2000 c 168 §
1, changing subsection (21) to subsection (22); and was subsequently
amended by 2002 c 297 § 9, changing subsection (22) to subsection (24).
**(2) RCW 18.16.020 was amended by 2002 c 111 § 2, deleting the
definition of "booth renter."
Severability—1991 c 324: See RCW 18.16.910.
Effective date—Conflict with federal requirements—1991 c 246:
See notes following RCW 51.08.195.
Effective dates—Implementation—1982 c 63: See note following
RCW 51.32.095.
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
51.12.025
51.12.025 Persons working on parents' family
farms—Optional exclusion from coverage. (1) The parent
or parents of a person at least eighteen years of age but under
twenty-one years of age may elect to exclude from mandatory
coverage under this title the parent's employment of that person in agricultural activities on their family farm if:
(a) The person resides with his or her parent or parents or
resides on their family farm; and
(b) The parent or parents file a written notice with the
department electing exclusion from coverage.
(2004 Ed.)
51.12.035
(2) A parent or parents who have elected to exclude a
person under this subsection may subsequently obtain coverage for that person under RCW 51.12.110. [1996 c 8 § 1.]
51.12.035
51.12.035 Volunteers. (1) Volunteers shall be deemed
employees and/or workers, as the case may be, for all purposes relating to medical aid benefits under chapter 51.36
RCW.
A "volunteer" shall mean a person who performs any
assigned or authorized duties for the state or any agency
thereof, except emergency services workers as described by
chapter 38.52 RCW, brought about by one's own free choice,
receives no wages, and is registered and accepted as a volunteer by the state or any agency thereof, prior to the occurrence
of the injury or the contraction of an occupational disease, for
the purpose of engaging in authorized volunteer service:
PROVIDED, That such person shall be deemed to be a volunteer although he or she may be granted maintenance and
reimbursement for actual expenses necessarily incurred in
performing his or her assigned or authorized duties.
Any and all premiums or assessments due under this title
on account of such volunteer service shall be the obligation of
and be paid by the state or any agency thereof which has registered and accepted the services of volunteers.
(2) Except as provided in RCW 51.12.050, volunteers
may be deemed employees and/or workers, as the case may
be, for all purposes relating to medical aid benefits under
chapter 51.36 RCW at the option of any city, county, town,
special district, municipal corporation, or political subdivision of any type, or any private nonprofit charitable organization, when any such unit of local government or any such
nonprofit organization has given notice of covering all of its
volunteers to the director prior to the occurrence of the injury
or contraction of an occupational disease.
A "volunteer" shall mean a person who performs any
assigned or authorized duties for any such unit of local government, or any such organization, except emergency services workers as described by chapter 38.52 RCW, or fire
fighters covered by chapter 41.24 RCW, brought about by
one's own free choice, receives no wages, and is registered
and accepted as a volunteer by any such unit of local government, or any such organization which has given such notice,
for the purpose of engaging in authorized volunteer services:
PROVIDED, That such person shall be deemed to be a volunteer although he or she may be granted maintenance and
reimbursement for actual expenses necessarily incurred in
performing his or her assigned or authorized duties: PROVIDED FURTHER, That juveniles performing community
restitution under chapter 13.40 RCW may not be granted coverage as volunteers under this section.
Any and all premiums or assessments due under this title
on account of such volunteer service for any such unit of
local government, or any such organization shall be the obligation of and be paid by such organization which has registered and accepted the services of volunteers and exercised its
option to secure the medical aid benefits under chapter 51.36
RCW for such volunteers. [2002 c 175 § 39; 2001 c 138 § 3;
1981 c 266 § 3; 1977 ex.s. c 350 § 17; 1975 1st ex.s. c 79 § 1;
1974 ex.s. c 171 § 44; 1971 c 20 § 1.]
Effective date—2002 c 175: See note following RCW 7.80.130.
[Title 51 RCW—page 11]
51.12.045
Title 51 RCW: Industrial Insurance
Finding—Purpose—2001 c 138: See note following RCW 51.12.050.
51.12.045
51.12.045 Offenders performing community restitution. Offenders performing community restitution pursuant
to court order or under RCW 13.40.080 may be deemed
employees and/or workers under this title at the option of the
state, county, city, town, or nonprofit organization under
whose authorization the community restitution is performed.
Any premiums or assessments due under this title for community restitution work shall be the obligation of and be paid
for by the state agency, county, city, town, or nonprofit organization for which the offender performed the community
restitution. Coverage commences when a state agency,
county, city, town, or nonprofit organization has given notice
to the director that it wishes to cover offenders performing
community restitution before the occurrence of an injury or
contraction of an occupational disease. [2002 c 175 § 40;
1986 c 193 § 1; 1984 c 24 § 4; 1981 c 266 § 1.]
Effective date—2002 c 175: See note following RCW 7.80.130.
Offenders treated as employees or workers by local governments: RCW
35.21.209, 35A.21.220, 36.16.139.
51.12.050
51.12.050 Public entity work—Partnerships with
volunteer groups and businesses for community improvement projects. (1) Whenever a public entity engages in any
work, or let a contract therefor, in which workers are
employed for wages, this title shall be applicable thereto. The
employer's payments into the accident fund shall be made
from the treasury of the public entity. If the work is being
done by contract, the payroll of the contractor and the subcontractor shall be the basis of computation and, in the case
of contract work consuming less than one year in performance, the required payment into the accident fund shall be
based upon the total payroll. The contractor and any subcontractor shall be subject to the provisions of this title, and the
state for its general fund, the county, municipal corporation,
or other taxing district shall be entitled to collect from the
contractor the full amount payable to the accident fund and
the contractor, in turn, shall be entitled to collect from the
subcontractor his or her proportionate amount of the payment.
(2)(a) A public entity may seek partnerships with volunteer groups and businesses to engage in community improvement projects to benefit the public entity. In administering a
project, the public entity must:
(i) Provide prospective donors and participants written
notice of the risks and responsibilities to be assumed by the
public entity and the donors or participants. A volunteer
donating labor on the project must, before beginning work,
document in writing that he or she has received the notice and
that he or she is donating labor as a result of his or her own
free choice; and
(ii) Pay premiums and assessments required under this
title to secure medical aid benefits under chapter 51.36 RCW
for volunteers donating labor on the project.
(b) A contractor or employer donating equipment or
materials for use on a community improvement project shall
not, for the purposes of this title, be considered the employer
of an individual donating labor unless the contractor or
employer pays the individual wages for working on the
[Title 51 RCW—page 12]
project or makes working on the project a condition of
employment. This subsection applies regardless of whether:
(i) The contractor or employer informs the individual
about the community improvement project or encourages the
individual to donate labor on the project;
(ii) The individual uses equipment or materials on the
project that are donated by the contractor or the individual's
employer; or
(iii) The individual is granted maintenance or reimbursement for actual expenses necessarily incurred in performing
labor for the project.
(3) Whenever and so long as, by state law, city charter,
or municipal ordinance, provision is made for employees or
peace officers injured in the course of employment, such
employees shall not be entitled to the benefits of this title and
shall not be included in the payroll of the municipality under
this title: PROVIDED, That whenever any state law, city
charter, or municipal ordinance only provides for payment to
the employee of the difference between his or her actual
wages and that received under this title such employees shall
be entitled to the benefits of this title and may be included in
the payroll of the municipality.
(4) The definitions in this subsection apply throughout
this section, unless the context clearly requires otherwise.
(a) "Community improvement project" means a project
sponsored by a public entity that uses donated labor, materials, or equipment and includes, but is not limited to, projects
to repair, restore, or preserve historic property.
(b) "Historic property" means real property owned by a
public entity including, but not limited to, barns, schools,
military structures, and cemeteries.
(c) "Public entity" means the state, county, any municipal corporation, or other taxing district. [2001 c 138 § 2;
1977 ex.s. c 350 § 18; 1972 ex.s. c 43 § 8; 1961 c 23 §
51.12.050. Prior: 1955 c 74 § 6; prior: (i) 1923 c 136 § 5,
part; 1921 c 182 § 8, part; 1915 c 188 § 6, part; 1911 c 74 §
17, part; RRS § 7692, part. (ii) 1923 c 128 § 1, part; RRS §
7674a, part.]
Finding—Purpose—2001 c 138: "The legislature finds that government and business partnerships on projects for community improvement can
assist communities to preserve historic property and create opportunities for
volunteer service. The legislature also recognizes that uncertainty about risks
and obligations may deter employers who would otherwise be willing to
donate materials and equipment to a community project. The purpose of this
act is to encourage participation by establishing clear criteria for determining
industrial insurance obligations with respect to donated labor on certain
community projects." [2001 c 138 § 1.]
51.12.060
51.12.060 Federal projects. The application of this
title and related safety laws is hereby extended to all lands
and premises owned or held by the United States of America,
by deed or act of cession, by purchase or otherwise, which are
within the exterior boundaries of the state of Washington, and
to all projects, buildings, constructions, improvements, and
property belonging to the United States of America, which
are within the exterior boundaries of the state, in the same
way and to the same extent as if said premises were under the
exclusive jurisdiction of the state, and as fully as is permitted
under the provisions of that act of the congress of the United
States approved June 25, 1936, granting to the several states
jurisdiction and authority to apply their state workers' compensation laws on all property and premises belonging to the
(2004 Ed.)
Employments and Occupations Covered
United States of America, being 49 United States Statutes at
large 1938, title 40, section 290 United States code, 1958 edition: PROVIDED, That this title shall not apply to employees of the United States of America. [1977 ex.s. c 350 § 19;
1961 c 23 § 51.12.060. Prior: 1937 c 147 § 1; RRS § 7676-2.]
51.12.070 Work done by contract—Subcontractors.
The provisions of this title apply to all work done by contract;
the person, firm, or corporation who lets a contract for such
work is responsible primarily and directly for all premiums
upon the work. The contractor and any subcontractor are
subject to the provisions of this title and the person, firm, or
corporation letting the contract is entitled to collect from the
contractor the full amount payable in premiums and the contractor in turn is entitled to collect from the subcontractor his
or her proportionate amount of the payment.
For the purposes of this section, a contractor registered
under chapter 18.27 RCW or licensed under chapter 19.28
RCW is not responsible for any premiums upon the work of
any subcontractor if:
(1) The subcontractor is currently engaging in a business
which is registered under chapter 18.27 RCW or licensed
under chapter 19.28 RCW;
(2) The subcontractor has a principal place of business
which would be eligible for a business deduction for internal
revenue service tax purposes other than that furnished by the
contractor for which the business has contracted to furnish
services;
(3) The subcontractor maintains a separate set of books
or records that reflect all items of income and expenses of the
business;
(4) The subcontractor has contracted to perform:
(a) The work of a contractor as defined in RCW
18.27.010; or
(b) The work of installing wires or equipment to convey
electric current or installing apparatus to be operated by such
current as it pertains to the electrical industry as described in
chapter 19.28 RCW; and
(5) The subcontractor has an industrial insurance
account in good standing with the department or is a selfinsurer. For the purposes of this subsection, a contractor may
consider a subcontractor's account to be in good standing if,
within a year prior to letting the contract or master service
agreement, and at least once a year thereafter, the contractor
has verified with the department that the account is in good
standing and the contractor has not received written notice
from the department that the subcontractor's account status
has changed. Acceptable documentation of verification
includes a department document which includes an issued
date or a dated printout of information from the department's
internet web site showing a subcontractor's good standing.
The department shall develop an approach to provide contractors with verification of the date of inquiries validating
that the subcontractor's account is in good standing.
It is unlawful for any county, city, or town to issue a construction building permit to any person who has not submitted to the department an estimate of payroll and paid premium thereon as provided by chapter 51.16 RCW of this title
or proof of qualification as a self-insurer. [2004 c 243 § 2;
1981 c 128 § 4; 1971 ex.s. c 289 § 81; 1965 ex.s. c 20 § 1;
1961 c 23 § 51.12.070. Prior: 1955 c 74 § 7; prior: 1923 c
51.12.090
136 § 5, part; 1921 c 182 § 8, part; 1915 c 188 § 6, part; 1911
c 74 § 17, part; RRS § 7692, part.]
Adoption of rules—2004 c 243: See note following RCW 51.08.177.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.12.070
(2004 Ed.)
51.12.080
51.12.080 Railway employees. Inasmuch as it has
proved impossible in the case of employees of common carriers by railroad, engaged in maintenance and operation of
railways doing interstate, foreign and intrastate commerce,
and in maintenance and construction of their equipment, to
separate and distinguish the connection of such employees
with interstate or foreign commerce from their connection
with intrastate commerce, and such employees have, in fact,
received no compensation under this title, the provisions of
this title shall not apply to work performed by such employees in the maintenance and operation of such railroads or performed in the maintenance or construction of their equipment, or to the employees of such common carriers by railroad engaged therein, but nothing herein shall be construed as
excluding from the operation of this title railroad construction work, or the employees engaged thereon: PROVIDED,
That common carriers by railroad engaged in such interstate
or foreign commerce and in intrastate commerce shall, in all
cases where liability does not exist under the laws of the
United States, be liable in damages to any person suffering
injury while employed by such carrier, or in case of the death
of such employee, to the surviving spouse and child, or children, and if no surviving spouse or child or children, then to
the parents, minor sisters, or minor brothers, residents of the
United States at the time of such death, and who were dependent upon such deceased for support, to the same extent and
subject to the same limitations as the liability now existing, or
hereafter created, by the laws of the United States governing
recoveries by railroad employees injured while engaged in
interstate commerce: PROVIDED FURTHER, That if any
interstate common carrier by railroad shall also be engaged in
one or more intrastate enterprises or industries (including
street railways and power plants) other than its railroad, the
foregoing provisions of this section shall not exclude from
the operation of the other sections of this title or bring under
the foregoing proviso of this section any work of such other
enterprise or industry, the payroll of which may be clearly
separable and distinguishable from the payroll of the maintenance or operation of such railroad, or of the maintenance or
construction of its equipment: PROVIDED FURTHER, That
nothing in this section shall be construed as relieving an independent contractor engaged through or by his employees in
performing work for a common carrier by railroad, from the
duty of complying with the terms of this title, nor as depriving any employee of such independent contractor of the benefits of this title. [1973 1st ex.s. c 154 § 92; 1972 ex.s. c 43 §
9; 1961 c 23 § 51.12.080. Prior: 1925 ex.s. c 84 § 1; 1919 c
67 § 1; 1917 c 29 § 19; 1911 c 74 § 18; RRS § 7693.]
Severability—1973 1st ex.s. c 154: See note following RCW 2.12.030.
51.12.090
51.12.090 Intrastate and interstate commerce. The
provisions of this title shall apply to employers and workers
(other than railways and their workers) engaged in intrastate
and also in interstate or foreign commerce, for whom a rule of
[Title 51 RCW—page 13]
51.12.095
Title 51 RCW: Industrial Insurance
liability or method of compensation now exists under or may
hereafter be established by the congress of the United States,
only to the extent that the payroll of such workers may and
shall be clearly separable and distinguishable from the payroll of workers engaged in interstate or foreign commerce:
PROVIDED, That as to workers whose payroll is not so
clearly separable and distinguishable the employer shall in all
cases be liable in damages for injuries to the same extent and
under the same circumstances as is specified in the case of
railroads in the first proviso of RCW 51.12.080: PROVIDED FURTHER, That nothing in this title shall be construed to exclude goods or materials and/or workers brought
into this state for the purpose of engaging in work. [1983 c
170 § 1; 1982 c 63 § 16; 1977 ex.s. c 350 § 20; 1972 ex.s. c
43 § 10; 1961 c 23 § 51.12.090. Prior: 1959 c 308 § 10; 1919
c 67 § 3; RRS § 7695.]
Effective dates—Implementation—1982 c 63: See note following
RCW 51.32.095.
51.12.095
51.12.095 Common carrier employees—Owners and
operators of trucks. (1) Common or contract carriers doing
business in this state that are engaged exclusively in interstate
or foreign commerce, or any combination thereof, shall provide coverage under this title for their Washington employees, unless the employer has furnished workers' compensation insurance coverage under the laws of another state for
the coverage of employees in this state: PROVIDED, That
any common or contract carrier or its successor that formerly
had coverage under this title and by virtue of being exclusively engaged in interstate or foreign commerce, or any
combination thereof, withdrew its acceptance of liability
under this title by filing written notice with the director of the
withdrawal of its acceptance prior to January 2, 1987, shall be
governed by the provisions of this section that were in effect
as of that date.
(2) A person who is domiciled in this state and who owns
and operates a truck engaged in intrastate, interstate, or foreign commerce, or any combination thereof, may elect coverage under this title in the manner provided by RCW
51.32.030, whether or not the truck is leased to a common or
contract carrier. [1989 c 368 § 1; 1983 c 170 § 2.]
Effective date—1989 c 368: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1,
1989." [1989 c 368 § 2.]
51.12.100
51.12.100 Maritime occupations—Segregation of
payrolls—Common enterprise. (1) The provisions of this
title shall not apply to a master or member of a crew of any
vessel, or to employers and workers for whom a right or obligation exists under the maritime laws or federal employees'
compensation act for personal injuries or death of such workers.
(2) If an accurate segregation of payrolls of workers for
whom such a right or obligation exists under the maritime
laws cannot be made by the employer, the director is hereby
authorized and directed to fix from time to time a basis for the
approximate segregation of the payrolls of employees to
cover the part of their work for which no right or obligation
exists under the maritime laws for injuries or death occurring
in such work, and the employer, if not a self-insurer, shall pay
[Title 51 RCW—page 14]
premiums on that basis for the time such workers are engaged
in their work.
(3) Where two or more employers are simultaneously
engaged in a common enterprise at one and the same site or
place in maritime occupations under circumstances in which
no right or obligation exists under the maritime laws for personal injuries or death of such workers, such site or place
shall be deemed for the purposes of this title to be the common plant of such employers.
(4) In the event payments are made under this title prior
to the final determination under the maritime laws or federal
employees' compensation act, such benefits shall be repaid
by the worker or beneficiary if recovery is subsequently made
under the maritime laws or federal employees' compensation
act. [1991 c 88 § 3; 1988 c 271 § 2; 1977 ex.s. c 350 § 21;
1975 1st ex.s. c 224 § 3; 1972 ex.s. c 43 § 11; 1961 c 23 §
51.12.100. Prior: 1931 c 79 § 1; 1925 ex.s. c 111 § 1; RRS §
7693a.]
Effective date—Applicability—1988 c 271 §§ 1-4: See note following
RCW 51.12.102.
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
Ferry system employees in extrahazardous employment: RCW 47.64.070.
51.12.102
51.12.102 Maritime workers—Asbestos-related disease. (1) The department shall furnish the benefits provided
under this title to any worker or beneficiary who may have a
right or claim for benefits under the maritime laws of the
United States resulting from an asbestos-related disease if (a)
there are objective clinical findings to substantiate that the
worker has an asbestos-related claim for occupational disease
and (b) the worker's employment history has a prima facie
indicia of injurious exposure to asbestos fibers while
employed in the state of Washington in employment covered
under this title. The department shall render a decision as to
the liable insurer and shall continue to pay benefits until the
liable insurer initiates payments or benefits are otherwise
properly terminated under this title.
(2) The benefits authorized under subsection (1) of this
section shall be paid from the medical aid fund, with the selfinsurers and the state fund each paying a pro rata share, based
on number of worker hours, of the costs necessary to fund the
payments. For the purposes of this subsection only, the
employees of self-insured employers shall pay an amount
equal to one-half of the share charged to the self-insured
employer.
(3) If the department determines that the benefits paid
under subsection (1) of this section are owed to the worker or
beneficiary by a self-insurer or the state fund, then the selfinsurer or state fund shall reimburse the medical aid fund for
all benefits paid and costs incurred by the fund.
(4) If the department determines that the benefits paid
under subsection (1) of this section are owed to the worker or
beneficiary by a federal program other than the federal social
security, old age survivors, and disability insurance act, 42
U.S.C. or an insurer under the maritime laws of the United
States:
(a) The department shall pursue the federal program
insurer on behalf of the worker or beneficiary to recover from
the federal program insurer the benefits due the worker or
(2004 Ed.)
Employments and Occupations Covered
beneficiary and on its own behalf to recover the benefits previously paid to the worker or beneficiary and costs incurred;
(b) For the purpose of pursuing recovery under this subsection, the department shall be subrogated to all of the rights
of the worker or beneficiary receiving compensation under
subsection (1) of this section; and
(c) The department shall not pursue the worker or beneficiary for the recovery of benefits paid under subsection (1)
of this section unless the worker or beneficiary receives
recovery from the federal program insurer, in addition to
receiving benefits authorized under this section. The director
may exercise his or her discretion to waive, in whole or in
part, the recovery of any such benefits where the recovery
would be against equity and good conscience.
(d) Actions pursued against federal program insurers
determined by the department to be liable for benefits under
this section may be prosecuted by special assistant attorneys
general. The attorney general shall select special assistant
attorneys general from a list compiled by the department and
the Washington state bar association. The attorney general, in
conjunction with the department and the Washington state
bar association, shall adopt rules and regulations outlining the
criteria and the procedure by which private attorneys may
have their names placed on the list of attorneys available for
appointment as special assistant attorneys general to litigate
actions under this subsection. Attorneys' fees and costs shall
be paid in conformity with applicable federal and state law.
Any legal costs remaining as an obligation of the department
shall be paid from the medical aid fund.
(5) The provisions of subsection (1) of this section shall
not apply if the worker or beneficiary refuses, for whatever
reason, to assist the department in making a proper determination of coverage. If a worker or beneficiary refuses to
cooperate with the department, self-insurer, or federal program insurer by failing to provide information that, in the
opinion of the department, is relevant in determining the liable insurer, or if a worker refuses to submit to medical examination, or obstructs or fails to cooperate with the examination, or if the worker or beneficiary fails to cooperate with the
department in pursuing benefits from the federal program
insurer, the department shall reject the application for benefits. No information obtained under this section is subject to
release by subpoena or other legal process.
(6) The amount of any third party recovery by the worker
or beneficiary shall be subject to a lien by the department to
the full extent that the medical aid fund has not been otherwise reimbursed by another insurer. Reimbursement shall be
made immediately to the medical aid fund upon recovery
from the third party suit. If the department determines that the
benefits paid under subsection (1) of this section are owed to
the worker or beneficiary by a federal program insurer, the
department shall not participate in the costs or attorneys' fees
incurred in bringing the third party suit. [1993 c 168 § 1;
1988 c 271 § 1.]
Applicability—1993 c 168: "This act applies to all claims without
regard to the date of injury or date of filing of the claim." [1993 c 168 § 2.]
Effective date—1993 c 168: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1,
1993." [1993 c 168 § 3.]
(2004 Ed.)
51.12.110
Report to legislature—1988 c 271 § 1: "The department of labor and
industries shall conduct a study of the program established by RCW
51.12.102. The department's study shall include the use of benefits under the
program and the cost of the program. The department shall report the results
of the study to the economic development and labor committee of the senate
and the commerce and labor committee of the house of representatives, or
the appropriate successor committees, at the start of the 1993 regular legislative session." [1988 c 271 § 4.]
Effective date—Applicability—1988 c 271 §§ 1-4: "Sections 1
through 4 of this act shall take effect July 1, 1988, and shall apply to all
claims filed on or after that date or pending a final determination on that
date." [1988 c 271 § 5.]
51.12.110
51.12.110 Elective adoption—Withdrawal—Cancellation. Any employer who has in his or her employment any
person or persons excluded from mandatory coverage pursuant to RCW 51.12.020 may file notice in writing with the
director, on such forms as the department may provide, of his
or her election to make such persons otherwise excluded subject to this title. The employer shall forthwith display in a
conspicuous manner about his or her works, and in a sufficient number of places to reasonably inform his or her workers of the fact, printed notices furnished by the department
stating that he or she has so elected. Said election shall
become effective upon the filing of said notice in writing.
The employer and his or her workers shall be subject to all the
provisions of this title and entitled to all of the benefits
thereof: PROVIDED, That those who have heretofore complied with the foregoing conditions and are carried and considered by the department as within the purview of this title
shall be deemed and considered as having fully complied
with its terms and shall be continued by the department as
entitled to all of the benefits and subject to all of the liabilities
without other or further action. Any employer who has complied with this section may withdraw his or her acceptance of
liability under this title by filing written notice with the director of the withdrawal of his or her acceptance. Such withdrawal shall become effective thirty days after the filing of
such notice or on the date of the termination of the security
for payment of compensation, whichever last occurs. The
employer shall, at least thirty days before the effective date of
the withdrawal, post reasonable notice of such withdrawal
where the affected worker or workers work and shall otherwise notify personally the affected workers. Withdrawal of
acceptance of this title shall not affect the liability of the
department or self-insurer for compensation for any injury
occurring during the period of acceptance.
The department shall have the power to cancel the elective adoption coverage if any required payments or reports
have not been made. Cancellation by the department shall be
no later than thirty days from the date of notice in writing by
the department advising of cancellation being made. [1991 c
246 § 5; 1982 c 63 § 17; 1980 c 14 § 6. Prior: 1977 ex.s. c 350
§ 22; 1977 ex.s. c 323 § 8; 1971 ex.s. c 289 § 85; 1961 c 23 §
51.12.110; prior: 1959 c 308 § 11; 1929 c 132 § 5; 1923 c
136 § 6; 1911 c 74 § 19; RRS § 7696.]
Effective date—Conflict with federal requirements—1991 c 246:
See notes following RCW 51.08.195.
Effective dates—Implementation—1982 c 63: See note following
RCW 51.32.095.
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
[Title 51 RCW—page 15]
51.12.120
Title 51 RCW: Industrial Insurance
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.12.120
51.12.120 Extraterritorial coverage. (1) If a worker,
while working outside the territorial limits of this state, suffers an injury on account of which he or she, or his or her beneficiaries, would have been entitled to compensation under
this title had the injury occurred within this state, the worker,
or his or her beneficiaries, shall be entitled to compensation
under this title if at the time of the injury:
(a) His or her employment is principally localized in this
state; or
(b) He or she is working under a contract of hire made in
this state for employment not principally localized in any
state; or
(c) He or she is working under a contract of hire made in
this state for employment principally localized in another
state whose workers' compensation law is not applicable to
his or her employer; or
(d) He or she is working under a contract of hire made in
this state for employment outside the United States and Canada.
(2) The payment or award of compensation or other
recoveries, including settlement proceeds, under the workers'
compensation law of another state, territory, province, or foreign nation to a worker or his or her beneficiaries otherwise
entitled on account of such injury to compensation under this
title shall not be a bar to a claim for compensation under this
title if that claim under this title is timely filed. If compensation is paid or awarded under this title, the total amount of
compensation or other recoveries, including settlement proceeds, paid or awarded the worker or beneficiary under such
other workers' compensation law shall be credited against the
compensation due the worker or beneficiary under this title.
(3)(a) An employer not domiciled in this state who is
employing workers in this state in work for which the
employer must be registered under chapter 18.27 RCW or
licensed under chapter 19.28 RCW, or prequalified under
RCW 47.28.070, must secure the payment of compensation
under this title by:
(i) Insuring the employer's workers' compensation obligation under this title with the department;
(ii) Being qualified as a self-insurer under this title; or
(iii) For employers domiciled in a state or province of
Canada subject to an agreement entered into under subsection
(7) of this section, as permitted by the agreement, filing with
the department a certificate of coverage issued by the agency
that administers the workers' compensation law in the
employer's state or province of domicile certifying that the
employer has secured the payment of compensation under the
other state's or province's workers' compensation law.
(b) The department shall adopt rules to implement this
subsection.
(4) If a worker or beneficiary is entitled to compensation
under this title by reason of an injury sustained in this state
while in the employ of an employer who is domiciled in
another state or province of Canada and the employer:
(a) Is not subject to subsection (3) of this section and has
neither opened an account with the department nor qualified
as a self-insurer under this title, the employer or his or her
insurance carrier shall file with the director a certificate
[Title 51 RCW—page 16]
issued by the agency that administers the workers' compensation law in the state of the employer's domicile, certifying
that the employer has secured the payment of compensation
under the workers' compensation law of the other state and
that with respect to the injury the worker or beneficiary is
entitled to the benefits provided under the other state's law.
(b) Has filed a certificate under subsection (3)(a)(iii) of
this section or (a) of this subsection (4):
(i) The filing of the certificate constitutes appointment
by the employer or his or her insurance carrier of the director
as its agent for acceptance of the service of process in any
proceeding brought by any claimant to enforce rights under
this title;
(ii) The director shall send to such employer or his or her
insurance carrier, by registered or certified mail to the
address shown on such certificate, a true copy of any notice
of claim or other process served on the director by the claimant in any proceeding brought to enforce rights under this
title;
(iii) If the employer is a self-insurer under the workers'
compensation law of the other state or province of Canada,
the employer shall, upon submission of evidence or security,
satisfactory to the director, of his or her ability to meet his or
her liability to the claimant under this title, be deemed to be a
qualified self-insurer under this title; and
(iv) If the employer's liability under the workers' compensation law of the other state or province of Canada is
insured:
(A) The employer's carrier, as to such claimant only,
shall be deemed to be subject to this title. However, unless
the insurer's contract with the employer requires the insurer
to pay an amount equivalent to the compensation benefits
provided by this title, the insurer's liability for compensation
shall not exceed the insurer's liability under the workers'
compensation law of the other state or province; and
(B) If the total amount for which the employer's insurer
is liable under (b)(iv)(A) of this subsection is less than the
total of the compensation to which the claimant is entitled
under this title, the director may require the employer to file
security satisfactory to the director to secure the payment of
compensation under this title.
(c) If subject to subsection (3) of this section, has not
complied with subsection (3) of this section or, if not subject
to subsection (3) of this section, has neither qualified as a
self-insurer nor secured insurance coverage under the workers' compensation law of another state or province of Canada,
the claimant shall be paid compensation by the department
and the employer shall have the same rights and obligations,
and is subject to the same penalties, as other employers subject to this title.
(5) As used in this section:
(a) A person's employment is principally localized in this
or another state when: (i) His or her employer has a place of
business in this or the other state and he or she regularly
works at or from the place of business; or (ii) if (a)(i) of this
subsection is not applicable, he or she is domiciled in and
spends a substantial part of his or her working time in the service of his or her employer in this or the other state;
(b) "Workers' compensation law" includes "occupational
disease law" for the purposes of this section.
(2004 Ed.)
Employments and Occupations Covered
(6) A worker whose duties require him or her to travel
regularly in the service of his or her employer in this and one
or more other states may agree in writing with his or her
employer that his or her employment is principally localized
in this or another state, and, unless the other state refuses
jurisdiction, the agreement shall govern as to any injury
occurring after the effective date of the agreement.
(7) The director is authorized to enter into agreements
with the appropriate agencies of other states and provinces of
Canada that administer their workers' compensation law with
respect to conflicts of jurisdiction and the assumption of
jurisdiction in cases where the contract of employment arises
in one state or province and the injury occurs in another. If
the other state's or province's law requires Washington
employers to secure the payment of compensation under the
other state's or province's workers' compensation laws for
work performed in that state or province, then employers
domiciled in that state or province must purchase compensation covering their workers engaged in that work in this state
under this state's industrial insurance law. When an agreement under this subsection has been executed and adopted as
a rule of the department under chapter 34.05 RCW, it binds
all employers and workers subject to this title and the jurisdiction of this title is governed by this rule. [1999 c 394 § 1;
1998 c 279 § 2; 1995 c 199 § 1; 1977 ex.s. c 350 § 23; 1972
ex.s. c 43 § 12; 1971 ex.s. c 289 § 82.]
Finding—Intent—1998 c 279: "The legislature finds that a competitive disadvantage exists in the construction industry because of a disparity in
workers' compensation coverage requirements among the states. The intent
of this act is (1) to provide an equal footing for all contractors bidding on or
engaging in construction work in this state, (2) to ensure that all workers
injured while in the course of employment in this state receive the benefits to
which they are entitled, and (3) to not create disincentives for employers to
hire workers in this state." [1998 c 279 § 1.]
Severability—1995 c 199: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1995 c 199 § 8.]
51.12.130
51.12.130 Registered apprentices or trainees. (1) All
persons registered as apprentices or trainees with the state
apprenticeship council and participating in supplemental and
related instruction classes conducted by a school district, a
community college, a vocational school, or a local joint
apprenticeship committee, shall be considered as workers of
the state apprenticeship council and subject to the provisions
of Title 51 RCW, for the time spent in actual attendance at
such supplemental and related instruction classes.
(2) The assumed wage rate for all apprentices or trainees
during the hours they are participating in supplemental and
related instruction classes, shall be three dollars per hour.
This amount shall be used for purposes of computations of
premiums. For purposes of computing disability compensation payments, the actual wage rate during employment shall
be used.
(3) Only those apprentices or trainees who are registered
with the state apprenticeship council prior to their injury or
death and who incur such injury or death while participating
in supplemental and related instruction classes shall be entitled to benefits under the provisions of Title 51 RCW.
(4) The filing of claims for benefits under the authority
of this section shall be the exclusive remedy of apprentices or
(2004 Ed.)
51.12.140
trainees and their beneficiaries for injuries or death compensable under the provisions of Title 51 RCW against the state,
its political subdivisions, the school district, community college, or vocational school and their members, officers or
employees or any employer regardless of negligence.
(5) This section shall not apply to any apprentice or
trainee who has earned wages for the time spent in participating in supplemental and related instruction classes. [1988 c
140 § 1; 1987 c 185 § 31; 1973 c 110 § 1.]
Intent—1987 c 185: "In 1977, in two separate pieces of legislation
relating to industrial insurance, the Washington legislature changed certain
references from "workmen's" or "workman's" compensation to "workers'"
compensation. The purpose of this act is to correct remaining obsolete references to "workmen's compensation" and "workmen."" [1987 c 185 § 1.]
Severability—1987 c 185: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1987 c 185 § 41.]
51.12.140
51.12.140 Volunteer law enforcement officers. (1) As
used in this section:
(a) "Municipal corporation" means any city, town, or
county authorized by law to maintain and operate a law
enforcement department;
(b) "Law enforcement department" means any regularly
organized police department, sheriff's department, department of public safety, or other similar organization which has
as its primary purpose the enforcement of state or local penal
laws and the preservation of public order, which consists
wholly of volunteer law enforcement officers or a combination of volunteer and paid law enforcement officers, and
which is duly organized and maintained by a municipal corporation;
(c) "Volunteer law enforcement officer" means a person
who is a member of a law enforcement department and who
(i) performs assigned or authorized duties for the law
enforcement department by his or her own free choice; (ii)
serves in a position that is not basically clerical or secretarial
in nature; (iii) is registered and accepted as a volunteer by the
law enforcement department; and (iv) receives no monetary
remuneration other than maintenance and reimbursement for
actual expenses necessarily incurred in performing assigned
duties; and
(d) "Performance of duty" includes any work in and
about the volunteer law enforcement officers' quarters, police
station, or any other place under the direction or general
orders of the officer having the authority to order a volunteer
law enforcement officer to perform the work; providing law
enforcement assistance; patrol; drill; and any work of an
emergency nature performed in accordance with the rules of
the law enforcement department.
(2) Any municipal corporation maintaining and operating a law enforcement department may elect to provide coverage under this title for all of its volunteer law enforcement
officers for death or disability occurring in the performance
of their duties as volunteer law enforcement officers. Any
municipal corporation electing to provide the coverage shall
file a written notice of coverage with the director.
(3) Coverage under this section shall be for all the applicable death, disability, and medical aid benefits of this title
and shall be effective only for injuries which occur and occu[Title 51 RCW—page 17]
51.12.150
Title 51 RCW: Industrial Insurance
pational diseases which are contracted after the notice of coverage has been filed with the director.
Nothing in this subsection shall be construed to prohibit
a municipal corporation from covering its volunteer law
enforcement officers and other volunteers under RCW
51.12.035(2), as now or hereafter amended, for medical aid
benefits only.
(4) Volunteer law enforcement officers for whom
municipal corporations have given notice of coverage under
this section shall be deemed workers or employees, as the
case may be, and the performance of their duties shall be
deemed employment or in the course of employment, as the
case may be, for all purposes of this title except where
expressly excluded or where the context clearly requires otherwise.
(5) All premiums, assessments, contributions, and penalties due under this title because coverage is provided under
this section shall be the obligation of and be paid by the
municipal corporation giving the notice of coverage to the
director.
(6) Any municipal corporation electing coverage under
this section shall maintain a time log in which the number of
hours worked by each of its volunteer law enforcement officers is recorded. The log shall be made available for inspection
upon the request of any authorized employee of the department.
(7) Any municipal corporation electing coverage under
this section may withdraw the coverage by filing a written
notice of the withdrawal with the director. The withdrawal
shall become effective thirty days after filing the notice or on
the date of the termination of the security for payment of
compensation, whichever occurs later. At least thirty days
before the effective date of the withdrawal, the municipal
corporation shall notify each of its volunteer law enforcement
officers of the withdrawal. Withdrawal of coverage under this
section shall not affect the liability of the department or selfinsurer for compensation for any injury occurring during the
period in which coverage was provided. [1977 ex.s. c 113 §
1.]
Severability—1977 ex.s. c 113: "If any provision of this act, or its
application to any person or circumstance is held invalid, the remainder of
the act, or the application of the provision to other persons or circumstances
is not affected." [1977 ex.s. c 113 § 2.]
employees of a foreign degree-granting institution who are
nonimmigrant aliens under the immigration laws of the
United States, shall, for the purposes of RCW 51.12.120, be
considered to be localized or principally localized, in the
country of domicile of the foreign degree-granting institution
as defined in RCW 28B.90.010 in those instances where the
income of those employees would be exempt from taxation
by virtue of the terms and provisions of any treaty between
the United States and the country of domicile of the foreign
degree-granting institution. However, a foreign degree-granting institution is not precluded from otherwise establishing
that a nonimmigrant employee's services are, for the purpose
of such statutes, principally located in its country of domicile.
[1993 c 181 § 9.]
51.12.170 Student volunteers. (1) An employer covered under this title may elect to include student volunteers as
employees or workers for all purposes relating to medical aid
benefits under chapter 51.36 RCW. The employer shall give
notice of its intent to cover all of its student volunteers to the
director prior to the occurrence of the injury or contraction of
an occupational disease.
(2) A student volunteer is an enrolled student in a public
school as defined in RCW 28A.150.010 who is participating
as a volunteer under a program authorized by the public
school. The student volunteer shall perform duties for the
employer without wages. The student volunteer shall be
deemed to be a volunteer even if the student is granted maintenance and reimbursement for actual expenses necessarily
incurred in performing his or her assigned or authorized
duties. A person who earns wages for the services performed
is not a student volunteer.
(3) Any and all premiums or assessments due under this
title on account of service by a student volunteer shall be paid
by the employer who has registered and accepted the services
of volunteers and has exercised its option to secure the medical aid benefits under chapter 51.36 RCW for the student volunteers. [1994 c 246 § 1.]
51.12.170
Effective date—Implementation—1994 c 246 § 1: "Section 1 of this
act shall take effect October 1, 1994. The department of labor and industries
may take such steps as are necessary to ensure that this section is implemented on its effective date." [1994 c 246 § 3.]
Chapter 51.14
51.12.150
51.12.150 Musicians and entertainers. Any musician
or entertainer who performs as a member of a group or recognized entity is deemed an employee of the group or entity and
the leader of the group or entity shall be required to properly
register as an employer with the department and pay industrial insurance premiums on behalf of his or her employees. If
a musician or entertainer is a sole performer or performs as a
partner in a group or entity, or performs on a casual basis, the
musician or entertainer shall be exempted from mandatory
coverage of this title. However, any such sole performer,
partner, or casual performer may elect to be covered under
this title and shall be subject to all the provisions and entitled
to all the benefits under this title. [1983 c 252 § 2.]
Employments excluded—Musicians and entertainers: RCW 51.12.020.
51.12.160
51.12.160 Foreign degree-granting institutions—
Employee services in country of domicile. The services of
[Title 51 RCW—page 18]
Chapter 51.14 RCW
SELF-INSURERS
Sections
51.14.010
51.14.020
51.14.030
51.14.040
51.14.050
51.14.060
51.14.070
51.14.073
51.14.077
51.14.080
51.14.090
51.14.095
51.14.100
51.14.110
51.14.120
51.14.130
Duty to secure payment of compensation—Options.
Qualification.
Certification of employer as self-insurer.
Surety liability—Termination.
Termination of status—Notice—Financial requirements.
Default by self-insurer—Authority of director—Liability for
reimbursement.
Payments upon default.
Default lien.
Self-insurers' insolvency trust—Assessments—Rules.
Withdrawal of certification—Grounds.
Withdrawal of certification, corrective action upon employees'
petition.
Corrective action—Appeal.
Notice of compliance to be posted—Penalty.
Employer's duty to maintain records, furnish information.
Copy of claim file—Notice of protest or appeal—Medical
report.
Request for claim resolution—Time.
(2004 Ed.)
Self-Insurers
51.14.140
51.14.150
51.14.160
Violations of disclosure or request for resolution—Order by
director.
School districts, ESDs, public hospital districts, or hospitals as
self-insurers—Authorized—Organization—Qualifications.
School districts, ESDs, or hospitals as self-insurers—Rules—
Scope.
51.14.010
51.14.010 Duty to secure payment of compensation—
Options. Every employer under this title shall secure the
payment of compensation under this title by:
(1) Insuring and keeping insured the payment of such
benefits with the state fund; or
(2) Qualifying as a self-insurer under this title. [1971
ex.s. c 289 § 26.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.14.020
51.14.020 Qualification. (1) An employer may qualify
as a self-insurer by establishing to the director's satisfaction
that he or she has sufficient financial ability to make certain
the prompt payment of all compensation under this title and
all assessments which may become due from such employer.
Each application for certification as a self-insurer submitted
by an employer shall be accompanied by payment of a fee of
one hundred fifty dollars or such larger sum as the director
shall find necessary for the administrative costs of evaluation
of the applicant's qualifications. Any employer who has formerly been certified as a self-insurer and thereafter ceases to
be so certified may not apply for certification within three
years of ceasing to have been so certified.
(2)(a) A self-insurer may be required by the director to
supplement existing financial ability by depositing in an
escrow account in a depository designated by the director,
money and/or corporate or governmental securities approved
by the director, or a surety bond written by any company
admitted to transact surety business in this state, or provide
an irrevocable letter of credit issued by a federally or state
chartered commercial banking institution authorized to conduct business in the state of Washington filed with the department. The money, securities, bond, or letter of credit shall be
in an amount reasonably sufficient in the director's discretion
to insure payment of reasonably foreseeable compensation
and assessments but not less than the employer's normal
expected annual claim liabilities and in no event less than one
hundred thousand dollars. In arriving at the amount of
money, securities, bond, or letter of credit required under this
subsection, the director shall take into consideration the
financial ability of the employer to pay compensation and
assessments and his or her probable continuity of operation.
However, a letter of credit shall be acceptable only if the selfinsurer has a net worth of not less than five hundred million
dollars as evidenced in an annual financial statement prepared by a qualified, independent auditor using generally
accepted accounting principles. The money, securities, bond,
or letter of credit so deposited shall be held by the director
solely for the payment of compensation by the self-insurer
and his or her assessments. In the event of default the selfinsurer loses all right and title to, any interest in, and any right
to control the surety. The amount of surety may be increased
or decreased from time to time by the director. The income
from any securities deposited may be distributed currently to
the self-insurer.
(2004 Ed.)
51.14.030
(b) The letter of credit option authorized in (a) of this
subsection shall not apply to self-insurers authorized under
RCW 51.14.150 or to self-insurers who are counties, cities,
or municipal corporations.
(3) Securities or money deposited by an employer pursuant to subsection (2) of this section shall be returned to him or
her upon his or her written request provided the employer
files the bond required by such subsection.
(4) If the employer seeking to qualify as a self-insurer
has previously insured with the state fund, the director shall
require the employer to make up his or her proper share of
any deficit or insufficiency in the state fund as a condition to
certification as a self-insurer.
(5) A self-insurer may reinsure a portion of his or her liability under this title with any reinsurer authorized to transact
such reinsurance in this state: PROVIDED, That the reinsurer may not participate in the administration of the responsibilities of the self-insurer under this title. Such reinsurance
may not exceed eighty percent of the liabilities under this
title.
(6) For purposes of the application of this section, the
department may adopt separate rules establishing the security
requirements applicable to units of local government. In setting such requirements, the department shall take into consideration the ability of the governmental unit to meet its selfinsured obligations, such as but not limited to source of
funds, permanency, and right of default.
(7) The director shall adopt rules to carry out the purposes of this section including, but not limited to, rules
respecting the terms and conditions of letters of credit and the
establishment of the appropriate level of net worth of the selfinsurer to qualify for use of the letter of credit. Only letters of
credit issued in strict compliance with the rules shall be
deemed acceptable. [1995 c 31 § 1; 1990 c 209 § 1; 1986 c
57 § 1; 1977 ex.s. c 323 § 9; 1972 ex.s. c 43 § 16; 1971 ex.s.
c 289 § 27.]
Effective date—1990 c 209 § 1: "Section 1 of this act shall take effect
January 1, 1991." [1990 c 209 § 3.]
Intent—1986 c 57: See note following RCW 51.14.077.
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
51.14.030
51.14.030 Certification of employer as self-insurer.
The director may issue a certification that an employer is
qualified as a self-insurer when such employer meets the following requirements:
(1) He or she has fulfilled the requirements of RCW
51.14.020.
(2) He or she has submitted to the department a payroll
report for the preceding consecutive twelve month period.
(3) He or she has submitted to the department a sworn
itemized statement accompanied by an independent audit of
the employer's books demonstrating to the director's satisfaction that the employer has sufficient liquid assets to meet his
or her estimated liabilities as a self-insurer.
(4) He or she has demonstrated to the department the
existence of the safety organization maintained by him or her
within his or her establishment that indicates a record of accident prevention.
[Title 51 RCW—page 19]
51.14.040
Title 51 RCW: Industrial Insurance
(5) He or she has submitted to the department a description of the administrative organization to be maintained by
him or her to manage industrial insurance matters including:
(a) The reporting of injuries;
(b) The authorization of medical care;
(c) The payment of compensation;
(d) The handling of claims for compensation;
(e) The name and location of each business location of
the employer; and
(f) The qualifications of the personnel of the employer to
perform this service.
Such certification shall remain in effect until withdrawn
by the director or surrendered by the employer with the
approval of the director. An employer's qualification as a
self-insurer shall become effective on the date of certification
or any date specified in the certificate after the date of certification. [1977 ex.s. c 323 § 10; 1971 ex.s. c 289 § 28.]
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
51.14.040
51.14.040 Surety liability—Termination. (1) The
surety on a bond filed by a self-insurer pursuant to this title
may terminate its liability thereon by giving the director written notice stating when, not less than thirty days thereafter,
such termination shall be effective.
(2) In case of such termination, the surety shall remain
liable, in accordance with the terms of the bond, with respect
to future compensation for injuries to employees of the selfinsurer occurring prior to the termination of the surety's liability.
(3) If the bond is terminated for any reason other than the
employer's terminating his status as a self-insurer, the
employer shall, prior to the date of termination of the surety's
liability, otherwise comply with the requirements of this title.
(4) The liability of a surety on any bond filed pursuant to
this section shall be released and extinguished and the bond
returned to the employer or surety provided either such liability is secured by another bond filed, or money or securities
deposited as required by this title. [1971 ex.s. c 289 § 29.]
51.14.060
51.14.060 Default by self-insurer—Authority of
director—Liability for reimbursement. (1) The director
may, in cases of default upon any obligation under this title
by the self-insurer, after ten days notice by certified mail to
the defaulting self-insurer of the intention to do so, bring suit
upon such bond or collect the interest and principal of any of
the securities as they may become due or sell the securities or
any of them as may be required or apply the money deposited, all in order to pay compensation and discharge the obligations of the defaulting self-insurer under this title.
(2) The director shall be authorized to fulfill the defaulting self-insured employer's obligations under this title from
the defaulting self-insured employer's deposit or from other
funds provided under this title for the satisfaction of claims
against the defaulting self-insured employer. The defaulting
self-insured employer is liable to and shall reimburse the
director for the amounts necessary to fulfill the obligations of
the defaulting self-insured employer that are in excess of the
amounts received by the director from any bond filed, or
securities or money deposited, by the defaulting self-insured
employer pursuant to chapter 51.14 RCW. The amounts to be
reimbursed shall include all amounts paid or payable as compensation under this title together with administrative costs,
including attorneys' fees, and shall be considered taxes due
the state of Washington. [1986 c 57 § 2; 1971 ex.s. c 289 §
31.]
Intent—1986 c 57: See note following RCW 51.14.077.
51.14.070
51.14.070 Payments upon default. Whenever compensation due under this title is not paid because of an uncorrected default of a self-insurer, such compensation shall be
paid from the medical aid and accidents funds, and any moneys obtained by the director from the bonds or other security
provided under RCW 51.14.020 shall be deposited to the
appropriate fund for the payment of compensation and
administrative costs, including attorneys' fees. [1986 c 57 §
3; 1971 ex.s. c 289 § 36.]
Intent—1986 c 57: See note following RCW 51.14.077.
51.14.073
51.14.050
51.14.050 Termination of status—Notice—Financial
requirements. (1) Any employer may at any time terminate
his status as a self-insurer by giving the director written
notice stating when, not less than thirty days thereafter, such
termination shall be effective, provided such termination
shall not be effective until the employer either shall have
ceased to be an employer or shall have filed with the director
for state industrial insurance coverage under this title.
(2) An employer who ceases to be a self-insurer, and
who so files with the director, must maintain money, securities or surety bonds deemed sufficient in the director's discretion to cover the entire liability of such employer for injuries
or occupational diseases to his employees which occurred
during the period of self-insurance: PROVIDED, That the
director may agree for the medical aid and accident funds to
assume the obligation of such claims, in whole or in part, and
shall adjust the employer's premium rate to provide for the
payment of such obligations on behalf of the employer.
[1971 ex.s. c 289 § 30.]
[Title 51 RCW—page 20]
51.14.073 Default lien. (1) In all cases of probate,
insolvency, assignment for the benefit of creditors, or bankruptcy, the claim of the state for the amounts necessary to fulfill the obligations of a defaulting self-insured employer
together with administrative costs and attorneys' fees is a lien
prior to all other liens or claims and on a parity with prior tax
liens and the mere existence of a default by a self-insured
employer is sufficient to create the lien without any prior or
subsequent action by the state. All administrators, receivers,
and assignees for the benefit of creditors shall notify the
director of such administration, receivership, or assignment
within thirty days of their appointment or qualification.
(2) Separate and apart and in addition to the lien established by this section, the department may issue an assessment, as provided for in RCW 51.48.120, for the amount necessary to fulfill the defaulting self-insured employer's obligati o n s , i n c l u d i n g a ll a m o u n t s p ai d a n d p a y a b le a s
compensation under this title and administrative costs,
including attorneys' fees. [1986 c 57 § 4.]
Intent—1986 c 57: See note following RCW 51.14.077.
(2004 Ed.)
Self-Insurers
51.14.077
51.14.077 Self-insurers' insolvency trust—Assessments—Rules. (1) A self-insurers' insolvency trust is established to provide for the unsecured benefits paid to the
injured workers of self-insured employers under this title for
insolvent or defaulting self-insured employers and for the
department's associated administrative costs, including attorneys' fees. The self-insurers' insolvency trust shall be funded
by an insolvency assessment which shall be levied on a postinsolvency basis and after the defaulting self-insured
employer's security deposit, assets, and reinsurance, if any,
have been exhausted. Insolvency assessments shall be
imposed on all self-insured employers, except school districts, cities, and counties. The manner of imposing and collecting assessments to the insolvency fund shall be set forth
in rules adopted by the department to ensure that self-insured
employers pay into the fund in proportion to their claim costs.
The department's rules shall provide that self-insured
employers who have surrendered their certification shall be
assessed for a period of not more than three calendar years
following the termination date of their certification.
(2) The director shall adopt rules to carry out the purposes of this section, including but not limited to:
(a) Governing the formation of the self-insurers' insolvency trust for the purpose of this chapter;
(b) Governing the organization and operation of the selfinsurers' insolvency trust to assure compliance with the
requirements of this chapter;
(c) Requiring adequate accountability of the collection
and disbursement of funds in the self-insurers' insolvency
trust; and
(d) Any other provisions necessary to carry out the
requirements of this chapter. [1986 c 57 § 6.]
Intent—1986 c 57: "It is the intent of the legislature to provide for the
continuation of workers' compensation benefits in the event of the failure of
a self-insured employer to meet its compensation obligations when the
employer's security deposit, assets, and reinsurance are inadequate. The legislature finds and declares that the establishment of a self-insurers' insolvency trust is necessary to assure that benefit payments to injured workers of
self-insured employers will not become the responsibility of the state fund."
[1986 c 57 § 5.]
51.14.080
51.14.080 Withdrawal of certification—Grounds.
Certification of a self-insurer shall be withdrawn by the
director upon one or more of the following grounds:
(1) The employer no longer meets the requirements of a
self-insurer; or
(2) The self-insurer's deposit is insufficient; or
(3) The self-insurer intentionally or repeatedly induces
employees to fail to report injuries, induces claimants to treat
injuries in the course of employment as off-the-job injuries,
persuades claimants to accept less than the compensation
due, or unreasonably makes it necessary for claimants to
resort to proceedings against the employer to obtain compensation; or
(4) The self-insurer habitually fails to comply with rules
and regulations of the director regarding reports or other
requirements necessary to carry out the purposes of this title;
or
(5) The self-insurer habitually engages in a practice of
arbitrarily or unreasonably refusing employment to applicants for employment or discharging employees because of
nondisabling bodily conditions; or
(2004 Ed.)
51.14.095
(6) The self-insurer fails to pay an insolvency assessment
under the procedures established pursuant to RCW
51.14.077. [1986 c 57 § 7; 1971 ex.s. c 289 § 32.]
Intent—1986 c 57: See note following RCW 51.14.077.
51.14.090
51.14.090 Withdrawal of certification, corrective
action upon employees' petition. (1) Upon the petition of
any employee or union or association having a substantial
number of employees in the employ of the self-insurer the
director or the director's designee may, in the director or designee's sole discretion, hold a hearing to determine whether
or not there are grounds for the withdrawal of certification of
a self-insurer or for corrective action by the department.
(2) The director shall serve upon the self-insurer and
upon any employee or union or association having a substantial number of employees in the employ of said self-insurer,
personally or by certified mail, a notice of intention to withdraw, or not to withdraw, certification of the self-insurer,
which notice shall describe the nature and location or locations of the plants or operations involved; and the specific
nature of the reasons for the decision. Similar notice shall be
provided for decisions regarding corrective actions. The corrective action notice shall also include a directive to the selfinsurer specifying the program deficiencies to be eliminated.
(3) If the decision is to withdraw certification, it shall
include: The period of time within which the ground or
grounds therefor existed or arose; and the date, not less than
ninety days after the self-insurer's receipt of the notice, when
the certification will be withdrawn.
(4) An appeal of any action taken by the director under
this section may be taken by the self-insurer, or by any
employee or union or association having a substantial number of employees in the employ of the self-insurer. Proceedings on the appeal shall be as prescribed in this title. Appeal
by a self-insurer of notice of intention to withdraw certification or to take corrective action shall not act as a stay of the
withdrawal or corrective action, unless the board or court, for
good cause shown, orders otherwise.
(5) The director may adopt rules to carry out the purposes of this section. [1996 c 58 § 1; 1983 c 21 § 1; 1971
ex.s. c 289 § 33.]
51.14.095
51.14.095 Corrective action—Appeal. (1) The director shall take corrective action against a self-insured
employer if the director determines that:
(a) The employer is not following proper industrial
insurance claims procedures;
(b) The employer's accident prevention program is inadequate; or
(c) Any condition described in RCW 51.14.080 (1)
through (5) exists.
(2) Corrective actions may be taken upon the director's
initiative or in response to a petition filed under RCW
51.14.090. Corrective actions which may be taken by the
director shall include:
(a) Probationary certification for a period of time determined by the director;
(b) Mandatory training for employers in areas including
claims management, safety procedures, and administrative
reporting requirements; and
[Title 51 RCW—page 21]
51.14.100
Title 51 RCW: Industrial Insurance
(c) Monitoring of the activities of the employer to determine progress towards compliance.
The director shall adopt rules defining the corrective actions
which may be taken in response to a given condition.
Corrective actions shall be limited to those described in
(a), (b), and (c) of this subsection.
(3) Upon the termination of the corrective action, the
director shall review the employer's program for compliance
with state statutes and regulations. A written report regarding
the employer's compliance shall be provided to the employer
and to any party to a petition filed under RCW 51.14.090. If
the director determines that compliance has been attained, no
further action shall be taken. If compliance has not been
attained, the director may take additional corrective action as
defined in this section, or proceed toward decertification as
described in RCW 51.14.080.
(4) An employer may appeal any action taken by the
director under this section. Proceedings during the appeal
shall be as prescribed in this title. An appeal by a self-insurer
shall not act as a stay of the corrective action, unless the
board or court, for good cause shown, orders otherwise.
(5) This section shall not be construed to limit the
responsibilities or authority of the department under RCW
51.14.080 or 51.14.090. [1983 c 21 § 2.]
51.14.100
51.14.100 Notice of compliance to be posted—Penalty. (1) Every employer subject to the provisions of this title
shall post and keep posted in a conspicuous place or places in
and about his place or places of business a reasonable number
of typewritten or printed notices of compliance substantially
identical to a form prescribed by the director, stating that
such employer is subject to the provisions of this title. Such
notice shall advise whether the employer is self-insured or
has insured with the department, and shall designate a person
or persons on the premises to whom report of injury shall be
made.
(2) Any employer who has failed to open an account
with the department or qualify as a self-insurer shall not post
or permit to be posted on or about his place of business or
premises any notice of compliance with this title and any wilful violation of this subsection by any officer or supervisory
employee of an employer shall be a misdemeanor. [1971
ex.s. c 289 § 34.]
51.14.110
51.14.110 Employer's duty to maintain records, furnish information. Every self-insurer shall maintain a record
of all payments of compensation made under this title. The
self-insurer shall furnish to the director all information he has
in his possession as to any disputed claim, upon forms
approved by the director. [1971 ex.s. c 289 § 35.]
51.14.120
51.14.120 Copy of claim file—Notice of protest or
appeal—Medical report. (1) The self-insurer shall provide,
when authorized under RCW 51.28.070, a copy of the
employee's claim file at no cost within fifteen days of receipt
of a request by the employee or the employee's representative, and shall provide the physician performing an examination with all relevant medical records from the worker's claim
file, but only to the extent required of the department under
RCW 51.36.070. If the self-insured employer determines that
[Title 51 RCW—page 22]
release of the claim file to an unrepresented worker in whole
or in part, may not be in the worker's best interests, the
employer must submit a request for denial with an explanation along with a copy of that portion of the claim file not previously provided within twenty days after the request from
the worker. In the case of second or subsequent requests, a
reasonable charge for copying may be made. The self-insurer
shall provide the entire contents of the claim file unless the
request is for only a particular portion of the file. Any new
material added to the claim file after the initial request shall
be provided under the same terms and conditions as the initial
request.
(2) The self-insurer shall transmit notice to the department of any protest or appeal by an employee relating to the
administration of an industrial injury or occupational disease
claim under this chapter within five working days of receipt.
The date that the protest or appeal is received by the selfinsurer shall be deemed to be the date the protest is received
by the department for the purpose of RCW 51.52.050.
(3) The self-insurer shall submit a medical report with
the request for closure of a claim under this chapter. [2001 c
152 § 1; 1993 c 122 § 2.]
51.14.130
51.14.130 Request for claim resolution—Time. The
self-insurer shall request allowance or denial of a claim
within sixty days from the date that the claim is filed. If the
self-insurer fails to act within sixty days, the department shall
promptly intervene and adjudicate the claim. [1993 c 122 §
3.]
51.14.140
51.14.140 Violations of disclosure or request for resolution—Order by director. Failure of a self-insurer to
comply with RCW 51.14.120 and 51.14.130 shall subject the
self-insurer to a penalty under RCW 51.48.080, which shall
accrue for the benefit of the employee. The director shall
issue an order conforming with RCW 51.52.050 determining
whether a violation has occurred within thirty days of a
request by an employee. [1993 c 122 § 4.]
51.14.150
51.14.150 School districts, ESDs, public hospital districts, or hospitals as self-insurers—Authorized—Organization—Qualifications. (1) For the purposes of this section, "hospital" means a hospital as defined in *RCW
70.41.020(2) or a psychiatric hospital regulated under chapter
71.12 RCW, but does not include beds utilized by a comprehensive cancer center for cancer research.
(2)(a) Any two or more employers which are school districts or educational service districts, or (b) any two or more
employers which are public hospital districts or hospitals, and
are owned or operated by a state agency or municipal corporation of this state, or (c) any two or more employers which
are hospitals, no one of which is owned or operated by a state
agency or municipal corporation of this state, may enter into
agreements to form self-insurance groups for the purposes of
this chapter.
(3) No more than one group may be formed under subsection (2)(b) of this section and no more than one group may
be formed under subsection (2)(c) of this section.
(4) The self-insurance groups shall be organized and
operated under rules promulgated by the director under RCW
(2004 Ed.)
Assessment and Collection of Premiums—Payrolls and Records
51.14.160. Such a self-insurance group shall be deemed an
employer for the purposes of this chapter, and may qualify as
a self-insurer if it meets all the other requirements of this
chapter. [1997 c 35 § 1; 1993 c 158 § 1; 1983 c 174 § 2; 1982
c 191 § 7.]
*Reviser's note: RCW 70.41.020 was amended by 2002 c 116 § 2,
changing subsection (2) to subsection (4).
Severability—1982 c 191: See note following RCW 28A.335.210.
Educational service district as self-insurer—Authority: RCW 28A.310.440.
School district as self-insurer—Authority: RCW 28A.320.070.
51.14.160
51.14.160 School districts, ESDs, or hospitals as selfinsurers—Rules—Scope. The director shall promulgate
rules to carry out the purposes of RCW 51.14.150:
(1) Governing the formation of self-insurance groups for
the purposes of this chapter;
(2) Governing the organization and operation of the
groups to assure their compliance with the requirements of
this chapter;
(3) Requiring adequate monetary reserves, determined
under accepted actuarial practices, to be maintained by each
group to assure financial solvency of the group; and
(4) Requiring each group to carry adequate reinsurance.
[1983 c 174 § 3; 1982 c 191 § 8.]
Severability—1982 c 191: See note following RCW 28A.335.210.
51.16.060
ognized principles of workers' compensation insurance
which shall be designed to stimulate and encourage accident
prevention and to facilitate collection. The department may
annually, or at such other times as it deems necessary to
maintain solvency of the funds, readjust rates in accordance
with the rating system to become effective on such dates as
the department may designate.
(2) In providing a retrospective rating plan under RCW
51.18.010, the department may consider each individual retrospective rating group as a single employing entity for purposes of dividends or premium discounts. [1999 c 7 § 8;
1989 c 49 § 1; 1980 c 129 § 4; 1977 ex.s. c 350 § 24; 1971
ex.s. c 289 § 16.]
Severability—1999 c 7: See RCW 51.18.900.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.16.040
51.16.040 Occupational diseases. The compensation
and benefits provided for occupational diseases shall be paid
and in the same manner as compensation and benefits for
injuries under this title. [1971 ex.s. c 289 § 83; 1961 c 23 §
51.16.040. Prior: 1959 c 308 § 12; 1941 c 235 § 2; Rem.
Supp. 1941 7679-1.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.16.042
Chapter 51.16 RCW
ASSESSMENT AND COLLECTION OF PREMIUMS—
PAYROLLS AND RECORDS
Chapter 51.16
Sections
51.16.035
51.16.040
51.16.042
51.16.060
51.16.070
51.16.090
51.16.100
51.16.105
51.16.107
51.16.110
51.16.120
51.16.130
51.16.140
51.16.150
51.16.155
51.16.160
51.16.170
51.16.180
51.16.190
51.16.200
51.16.210
Classifications—Premiums—Rules.
Occupational diseases.
Occupational and environmental research facility.
Quarterly report of payrolls.
Employer's records—Unified business identifier—Confidentiality.
Continuity of cost experience.
Classification changes.
Departmental expenses, financing.
Information and training on premium liability.
New businesses or resumed or continued operations.
Distribution of further accident cost.
Distribution of catastrophe cost.
Premium liability of worker.
Delinquent employers—Penalty after demand—Injunctive
relief.
Failure or refusal of employer to report or pay premiums
due—Collection.
Lien for payments due—Priority—Probate, insolvency, etc.
Lien for premiums, assessments, contributions, and penalties—Priority—In general—Notice.
Property acquired by state on execution.
Limitation on collection actions.
Payment of tax by employer quitting business—Liability of
successor.
Horse racing employment—Premiums.
51.16.035 Classifications—Premiums—Rules. (1)
The department shall classify all occupations or industries in
accordance with their degree of hazard and fix therefor basic
rates of premium which shall be the lowest necessary to
maintain actuarial solvency of the accident and medical aid
funds in accordance with recognized insurance principles.
The department shall formulate and adopt rules and regulations governing the method of premium calculation and collection and providing for a rating system consistent with rec51.16.035
(2004 Ed.)
51.16.042 Occupational and environmental research
facility. Inasmuch as business, industry and labor desire to
provide for testing, research, training and teaching facilities
and consulting services at the University of Washington for
industrial and occupational health for workers in the environmental research facility thereat, all employers shall bear their
proportionate share of the cost therefor. The director may
require payments to the department from all employers under
this title and may make rules and regulations in connection
therewith, which costs shall be paid from the department, in
lieu of the previous provisions of RCW 28B.20.458. [1977
ex.s. c 350 § 25; 1971 ex.s. c 289 § 84; 1963 c 151 § 2.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
Occupational and environmental research facility at University of Washington: RCW 28B.20.450 through 28B.20.458.
51.16.060
51.16.060 Quarterly report of payrolls. Every
employer not qualifying as a self-insurer, shall insure with
the state and shall, on or before the last day of January, April,
July and October of each year thereafter, furnish the department with a true and accurate payroll for the period in which
workers were employed by it during the preceding calendar
quarter, the total amount paid to such workers during such
preceding calendar quarter, and a segregation of employment
in the different classes established pursuant to this title, and
shall pay its premium thereon to the appropriate fund. Premiums for a calendar quarter, whether reported or not, shall
become due and delinquent on the day immediately following the last day of the month following the calendar quarter.
The sufficiency of such statement shall be subject to the
approval of the director: PROVIDED, That the director may
in his or her discretion and for the effective administration of
this title require an employer in individual instances to furnish a supplementary report containing the name of each
[Title 51 RCW—page 23]
51.16.070
Title 51 RCW: Industrial Insurance
individual worker, his or her hours worked, his or her rate of
pay and the class or classes in which such work was performed: PROVIDED FURTHER, That in the event an
employer shall furnish the department with four consecutive
quarterly reports wherein each such quarterly report indicates
that no premium is due the department may close the account:
PROVIDED FURTHER, That the department may promulgate rules and regulations in accordance with chapter 34.05
RCW to establish other reporting periods and payment due
dates in lieu of reports and payments following each calendar
quarter, and may also establish terms and conditions for payment of premiums and assessments based on estimated payrolls, with such payments being subject to approval as to sufficiency of the estimated payroll by the department, and also
subject to appropriate periodic adjustments made by the
department based on actual payroll: AND PROVIDED
FURTHER, That a temporary help company which provides
workers on a temporary basis to its customers shall be considered the employer for purposes of reporting and paying premiums and assessments under this title according to the
appropriate rate classifications as determined by the department: PROVIDED, That the employer shall be liable for
paying premiums and assessments, should the temporary
help company fail to pay the premiums and assessments
under this title. [1985 c 315 § 1; 1981 c 260 § 13. Prior: 1977
ex.s. c 350 § 26; 1977 ex.s. c 323 § 11; 1973 1st ex.s. c 32 §
1; 1971 ex.s. c 289 § 76; 1965 ex.s. c 80 § 1; 1961 c 23 §
51.16.060; prior: 1959 c 308 § 14; 1957 c 70 § 47; prior:
1947 c 247 § 1, part; Rem. Supp. 1947 § 7676c, part.]
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.16.070
51.16.070 Employer's records—Unified business
identifier—Confidentiality. (1)(a) Every employer shall
keep at his place of business a record of his employment from
which the information needed by the department may be
obtained and such record shall at all times be open to the
inspection of the director, supervisor of industrial insurance,
or the traveling auditors, agents, or assistants of the department, as provided in RCW 51.48.040.
(b) An employer who contracts with another person or
entity for work subject to chapter 18.27 or 19.28 RCW shall
obtain and preserve a record of the unified business identifier
account number for the person or entity performing the work.
Failure to obtain or maintain the record is subject to RCW
39.06.010 and to a penalty under RCW 51.48.030.
(2) Information obtained from employing unit records
under the provisions of this title shall be deemed confidential
and shall not be open to public inspection (other than to public employees in the performance of their official duties), but
any interested party shall be supplied with information from
such records to the extent necessary for the proper presentation of the case in question: PROVIDED, That any employing unit may authorize inspection of its records by written
consent. [1997 c 54 § 3; 1961 c 23 § 51.16.070. Prior: 1957
c 70 § 48; prior: 1947 c 247 § 1, part; Rem. Supp. 1947 §
7676c, part.]
[Title 51 RCW—page 24]
51.16.090
51.16.090 Continuity of cost experience. To the end
that no employer shall evade the burdens imposed by an unfavorable or high cost experience, the director may determine
whether or not an increase, decrease, or change (1) of operating property; (2) of interest in operating property; (3) of
employer; (4) of personnel or interest in employer is sufficient to show a bona fide change which would make inoperative any high cost experience: PROVIDED, That where an
employer is now or has prior to January 1, 1958, been covered under the provisions of this title for a period of at least
two years and subsequent thereto the legal structure of the
employer changes by way of incorporation, disincorporation,
merger, consolidation, transfer of stock ownership, or by any
other means, such person or entity as legally reconstituted
shall be entitled to a continuation of the experience rating
which existed prior to such change in the employer's legal
structure unless there has been such a substantial change as
provided in subdivisions (1), (2), (3) or (4) of this section as
would warrant making inoperative any high cost experience.
[1961 c 23 § 51.16.090. Prior: 1959 c 179 § 1; 1957 c 70 §
49; prior: 1947 c 247 § 1, part; Rem. Supp. 1947 § 7676c,
part.]
51.16.100
51.16.100 Classification changes. It is the intent that
the accident fund shall ultimately become neither more nor
less than self-supporting, except as provided in RCW
51.16.105 and, if in the adjustment of premium rates by the
director the moneys paid into the fund by any class or classes
shall be insufficient to properly and safely distribute the burden of accidents occurring therein, the department may
divide, rearrange, or consolidate such class or classes, making such adjustment or transfer of funds as it may deem
proper. The director shall make corrections of classifications
or subclassifications or changes in rates, classes and subclasses when the best interest of such classes or subclasses
will be served thereby. [1961 c 23 § 51.16.100. Prior: 1953
c 218 § 1; prior: (i) 1947 c 247 § 1, part; Rem. Supp. 1947 §
7676d, part. (ii) 1947 c 247 § 1, part; Rem. Supp. 1947 §
7676e, part.]
51.16.105
51.16.105 Departmental expenses, financing. All
department expenses relating to industrial safety and health
services of the department pertaining to workers' compensation shall be paid by the department and financed by premiums and by assessments collected from a self-insurer as provided in this title. [1994 c 164 § 26; 1977 ex.s. c 350 § 27;
1973 1st ex.s. c 52 § 8; 1971 ex.s. c 289 § 86; 1961 c 23 §
51.16.105. Prior: 1953 c 218 § 2.]
Effective date—1973 1st ex.s. c 52: See note following RCW
43.22.010.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.16.107
51.16.107 Information and training on premium liability. The department shall, working with business associations and other employer and employee groups when practical, publish information and provide training to promote
understanding of the premium liability that may be incurred
under this chapter. [2004 c 243 § 4.]
Adoption of rules—2004 c 243: See note following RCW 51.08.177.
(2004 Ed.)
Assessment and Collection of Premiums—Payrolls and Records
51.16.110
51.16.110 New businesses or resumed or continued
operations. Every employer who shall enter into any business, or who shall resume operations in any work or plant
after the final adjustment of his or her payroll in connection
therewith, or who was formerly a self-insurer and wishes to
continue his or her operations subject to this title, shall,
before so commencing or resuming or continuing operations,
as the case may be, notify the department of such fact. [1991
c 88 § 4; 1977 ex.s. c 323 § 12; 1971 ex.s. c 289 § 4; 1961 c
23 § 51.16.110. Prior: 1959 c 179 § 2; 1959 c 308 § 15; prior:
1957 c 70 § 50; 1951 c 236 § 4; 1947 c 247 § 1, part; Rem.
Supp. 1947 § 7676c, part.]
Severability—Effective date—1977 ex.s. c 323: See notes following
51.04.040.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.16.120
51.16.120 Distribution of further accident cost. (1)
Whenever a worker has a previous bodily disability from any
previous injury or disease, whether known or unknown to the
employer, and shall suffer a further disability from injury or
occupational disease in employment covered by this title and
become totally and permanently disabled from the combined
effects thereof or die when death was substantially accelerated by the combined effects thereof, then the experience
record of an employer insured with the state fund at the time
of said further injury or disease shall be charged and a selfinsured employer shall pay directly into the reserve fund only
the accident cost which would have resulted solely from said
further injury or disease, had there been no preexisting disability, and which accident cost shall be based upon an evaluation of the disability by medical experts. The difference
between the charge thus assessed to such employer at the
time of said further injury or disease and the total cost of the
pension reserve shall be assessed against the second injury
fund. The department shall pass upon the application of this
section in all cases where benefits are paid for total permanent disability or death and issue an order thereon appealable
by the employer. Pending outcome of such appeal the transfer or payment shall be made as required by such order.
(2) The department shall, in cases of claims of workers
sustaining injuries or occupational diseases in the employ of
state fund employers, recompute the experience record of
such employers when the claims of workers injured in their
employ have been found to qualify for payments from the
second injury fund after the regular time for computation of
such experience records and the department may make
appropriate adjustments in such cases including cash refunds
or credits to such employers.
(3) To encourage employment of injured workers who
are not reemployed by the employer at the time of injury, the
department may adopt rules providing for the reduction or
elimination of premiums or assessments from subsequent
employers of such workers and may also adopt rules for the
reduction or elimination of charges against such employers in
the event of further injury to such workers in their employ.
(4) To encourage employment of injured workers who
have a developmental disability as defined in RCW
71A.10.020, the department may adopt rules providing for
the reduction or elimination of premiums or assessments
from employers of such workers and may also adopt rules for
(2004 Ed.)
51.16.150
the reduction or elimination of charges against their employers in the event of further injury to such workers in their
employ. [2004 c 258 § 1; 1984 c 63 § 1; 1980 c 14 § 7. Prior:
1977 ex.s. c 350 § 28; 1977 ex.s. c 323 § 13; 1972 ex.s. c 43
§ 13; 1961 c 23 § 51.16.120; prior: 1959 c 308 § 16; 1945 c
219 § 1; 1943 c 16 § 1; Rem. Supp. 1945 § 7676-1a.]
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
51.16.130
51.16.130 Distribution of catastrophe cost. Whenever
there shall occur an accident in which three or more employees of an employer insured with the state fund are fatally
injured or sustain permanent total disability, the amount of
total cost other than medical aid costs arising out of such
accident that shall be charged to the account of the employer,
shall be twice the average cost of the pension claims arising
out of such accident. The entire cost of such accident, exclusive of medical aid costs, shall be charged against and
defrayed by the catastrophe injury account. [1972 ex.s. c 43
§ 14; 1961 c 23 § 51.16.130. Prior: 1957 c 70 § 22; prior:
1947 c 247 § 1, part; 1911 c 74 § 4, part; Rem. Supp. 1947 §
7676f, part.]
51.16.140
51.16.140 Premium liability of worker. (1) Every
employer who is not a self-insurer shall deduct from the pay
of each of his or her workers one-half of the amount he or she
is required to pay, for medical benefits within each risk classification. Such amount shall be periodically determined by
the director and reported by him or her to all employers under
this title: PROVIDED, That the state governmental unit shall
pay the entire amount into the medical aid fund for volunteers, as defined in RCW 51.12.035, and the state apprenticeship council shall pay the entire amount into the medical aid
fund for registered apprentices or trainees, for the purposes of
RCW 51.12.130. The deduction under this section is not
authorized for premiums assessed under RCW 51.16.210.
(2) It shall be unlawful for the employer, unless specifically authorized by this title, to deduct or obtain any part of
the premium or other costs required to be by him or her paid
from the wages or earnings of any of his or her workers, and
the making of or attempt to make any such deduction shall be
a gross misdemeanor. [1989 c 385 § 3; 1977 ex.s. c 350 § 29;
1973 c 110 § 2; 1971 ex.s. c 289 § 77; 1971 c 20 § 2; 1961 c
23 § 51.16.140. Prior: (i) 1923 c 136 § 8, part; 1919 c 129 §
1, part; 1917 c 28 § 4, part; RRS § 7713, part. (ii) 1947 c 247
§ 1, part; Rem. Supp. 1947 § 7676e, part.]
Effective date—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.16.150
51.16.150 Delinquent employers—Penalty after
demand—Injunctive relief. If any employer shall default in
any payment to any fund, the sum due may be collected by
action at law in the name of the state as plaintiff, and such
right of action shall be in addition to any other right of action
or remedy. If such default occurs after demand, the director
may require from the defaulting employer a bond to the state
for the benefit of any fund, with surety to the director's satisfaction, in the penalty of double the amount of the estimated
payments which will be required from such employer into the
said funds for and during the ensuing one year, together with
any penalty or penalties incurred. In case of refusal or failure
[Title 51 RCW—page 25]
51.16.155
Title 51 RCW: Industrial Insurance
after written demand personally served to furnish such bond,
the state shall be entitled to an injunction restraining the
delinquent from prosecuting an occupation or work until such
bond is furnished, and until all delinquent premiums, penalties, interest and costs are paid, conditioned for the prompt
and punctual making of all payments into said funds during
such periods, and any sale, transfer, or lease attempted to be
made by such delinquent during the period of any of the
defaults herein mentioned, of his works, plant, or lease
thereto, shall be invalid until all past delinquencies are made
good, and such bond furnished. [1986 c 9 § 4; 1985 c 315 §
2; 1972 ex.s. c 43 § 15; 1961 c 23 § 51.16.150. Prior: 1959 c
308 § 22; prior: 1929 c 132 § 4, part; 1923 c 136 § 3, part;
1917 c 120 § 5, part; 1917 c 28 § 2, part; 1915 c 188 § 3, part;
1911 c 74 § 8, part; RRS § 7682, part.]
51.16.155 Failure or refusal of employer to report or
pay premiums due—Collection. In every case where an
employer insured with the state fails or refuses to file any
report of payroll required by the department and fails or
refuses to pay the premiums due on such unreported payroll,
the department shall have authority to estimate such payroll
and the premiums due thereon and collect premiums on the
basis of such estimate.
If the report required and the premiums due thereon are
not made within ten days from the mailing of such demand by
the department, which shall include the amount of premiums
estimated by the department, the employer shall be in default
as provided by this title and the department may have and
recover judgment, warrant, or file liens for such estimated
premium or the actual premium, whichever is greater.
The director or the director's designee may compromise
the amount of premiums estimated by the department,
whether reduced to judgment or otherwise, arising under this
title if collection of the premiums estimated by the department would be against equity and good conscience. [1996 c
60 § 1; 1985 c 315 § 3; 1971 ex.s. c 289 § 87.]
51.16.155
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.16.160
51.16.160 Lien for payments due—Priority—Probate, insolvency, etc. In all cases of probate, insolvency,
assignment for the benefit of creditors, or bankruptcy, the
claim of the state for the payments due shall be a lien prior to
all other liens or claims and on a parity with prior tax liens
and the mere existence of such cases or conditions shall be
sufficient to create such lien without any prior or subsequent
action by the state, and all administrators, receivers, or
assignees for the benefit of creditors shall notify the department of such administration, receivership, or assignment
within thirty days from date of their appointment and qualification. In any action or proceeding brought for the recovery
of payments due upon the payroll of an employer, the certificate of the department that an audit has been made of the payroll of such employer pursuant to the direction of the department and the amount of such payroll for the period stated in
the certificate shall be prima facie evidence of such fact.
[1985 c 315 § 4; 1971 ex.s. c 289 § 78; 1961 c 23 § 51.16.160.
Prior: 1959 c 308 § 23; prior: 1929 c 132 § 4, part; 1923 c
136 § 3, part; 1917 c 120 § 5, part; 1917 c 28 § 2, part; 1915
c 188 § 3, part; 1911 c 74 § 8, part; RRS § 7682, part.]
[Title 51 RCW—page 26]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.16.170
51.16.170 Lien for premiums, assessments, contributions, and penalties—Priority—In general—Notice. Separate and apart from and in addition to the foregoing provisions in this chapter, the claims of the state for payments and
penalties due under this title shall be a lien prior to all other
liens or claims and on a parity with prior tax liens not only
against the interest of any employer, in real estate, plant,
works, equipment, and buildings improved, operated, or constructed by any employer, and also upon any products or articles manufactured by such employer.
The lien created by this section shall attach from the date
of the commencement of the labor upon such property for
which such premiums are due. In order to avail itself of the
lien hereby created, the department shall, within four months
after the employer has made report of his payroll and has
defaulted in the payment of his premiums thereupon, file with
the county auditor of the county within which such property
is then situated, a statement in writing describing in general
terms the property upon which a lien is claimed and stating
the amount of the lien claimed by the department. If any
employer fails or refuses to make report of his payroll, the
lien hereby created shall continue in full force and effect,
although the amount thereof is undetermined and the four
months' time within which the department shall file its claim
of lien shall not begin to run until the actual receipt by the
department of such payroll report. From and after the filing of
such claim of lien, the department shall be entitled to commence suit to cause such lien to be foreclosed in the manner
provided by law for the foreclosure of other liens on real or
personal property, and in such suit the certificate of the
department stating the date of the actual receipt by the department of such payroll report shall be prima facie evidence of
such fact. [1986 c 9 § 5; 1961 c 23 § 51.16.170. Prior: 1959
c 308 § 24; prior: 1951 c 214 § 1; 1929 c 132 § 4, part; 1923
c 136 § 3, part; 1917 c 120 § 5, part; 1917 c 28 § 2, part; 1915
c 188 § 3, part; 1911 c 74 § 8, part; RRS § 7682, part.]
51.16.180
51.16.180 Property acquired by state on execution.
The director shall have the custody of all property acquired
by the state at execution sale upon judgments obtained for
delinquent payments and penalties therefor and costs, and
may sell and dispose of the same at private sales for the sale
purchase price, and shall pay the proceeds into the state treasury to the credit of the appropriate fund. In case of the sale
of real estate the director shall execute the deed in the name
of the state. [1971 ex.s. c 289 § 79; 1961 c 23 § 51.16.180.
Prior: 1921 c 7 § 78, subdivision (4); RRS § 10836(4).]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.16.190
51.16.190 Limitation on collection actions. (1)
"Action" means, but is not limited to, a notice of assessment
pursuant to RCW 51.48.120, an action at law pursuant to
RCW 51.16.150, or any other administrative or civil process
authorized by this title for the determination of liability for
premiums, assessments, penalties, contributions, or other
sums, or the collection of premiums, assessments, penalties,
contributions, or other sums.
(2004 Ed.)
Retrospective Rating Plan
(2) Any action to collect any delinquent premium,
assessment, contribution, penalty, or other sum due to the
department from any employer subject to this title shall be
brought within three years of the date any such sum became
due.
(3) In case of a false or fraudulent report with intent to
evade premiums, assessments, contributions, penalties, interest, or other sums, or in the event of a failure to file a report,
action may be begun at any time.
(4) Any claim for refund or adjustment by an employer
of any premium, assessment, contribution, penalty, or other
sum collected by the department shall be made in writing to
the department within three years of the date the sum became
due. [1987 c 111 § 7; 1985 c 315 § 5; 1977 ex.s. c 323 § 27.]
Conflict with federal requirements—Severability—Effective date—
1987 c 111: See notes following RCW 50.12.220.
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
51.16.200
51.16.200 Payment of tax by employer quitting business—Liability of successor. Whenever any employer quits
business, or sells out, exchanges, or otherwise disposes of the
employer's business or stock of goods, any tax payable hereunder shall become immediately due and payable, and the
employer shall, within ten days thereafter, make a return and
pay the tax due; and any person who becomes a successor to
such business shall become liable for the full amount of the
tax and withhold from the purchase price a sum sufficient to
pay any tax due from the employer until such time as the
employer shall produce a receipt from the department showing payment in full of any tax due or a certificate that no tax
is due and, if such tax is not paid by the employer within ten
days from the date of such sale, exchange, or disposal, the
successor shall become liable for the payment of the full
amount of tax, and the payment thereof by such successor
shall, to the extent thereof, be deemed a payment upon the
purchase price, and if such payment is greater in amount than
the purchase price the amount of the difference shall become
a debt due such successor from the employer.
No successor may be liable for any tax due from the person from whom the successor has acquired a business or
stock of goods if the successor gives written notice to the
department of such acquisition and no assessment is issued
by the department within one hundred eighty days of receipt
of such notice against the former operator of the business and
a copy thereof mailed to such successor. [1995 c 160 § 1;
1986 c 9 § 6.]
51.16.210
51.16.210 Horse racing employment—Premiums.
(1) The department shall assess premiums, under the provisions of this section, for certain horse racing employments
licensed in accordance with chapter 67.16 RCW. This premium assessment shall be for the purpose of providing industrial insurance coverage for employees of trainers licensed
under chapter 67.16 RCW, including but not limited to exercise riders, pony riders, and grooms, and including all on or
off track employment. For the purposes of RCW 51.16.210,
67.16.300, 51.16.140, 51.32.073, and 67.16.020 a hotwalker
shall be considered a groom. The department may adopt rules
under chapter 34.05 RCW to carry out the purposes of this
section, including rules providing for alternative reporting
(2004 Ed.)
51.18.005
periods and payment due dates for coverage under this section. The department rules shall ensure that no licensee
licensed prior to May 13, 1989, shall pay more than the
assessment fixed at the basic manual rate.
(2) The department shall compute industrial insurance
premium rates on a per license basis, which premiums shall
be assessed at the time of each issuance or renewal of the
license for owners, trainers, and grooms in amounts established by department rule for coverage under this section.
Premium assessments shall be determined in accordance with
the requirements of this title, except that assessments shall
not be experience rated and shall be fixed at the basic manual
rate. However, rates may vary according to differences in
working conditions at major tracks and fair tracks.
(3) For the purposes of paying premiums and assessments under this section and making reports under this title,
individuals licensed as trainers by the Washington horse racing commission shall be considered employers. The premium
assessment for a groom's license shall be paid by the trainer
responsible for signing the groom's license application and
shall be payable at the time of license issuance or renewal.
(4) The fee to be assessed on owner licenses as required
by this section shall not exceed one hundred fifty dollars.
However, those owners having less than a full ownership in a
horse or horses shall pay a percentage of the required license
fee that is equal to the total percentage of the ownership that
the owner has in the horse or horses. In no event shall an
owner having an ownership percentage in more than one
horse pay more than a one hundred fifty-dollar license fee.
The assessment on each owner's license shall not imply that
an owner is an employer, but shall be required as part of the
privilege of holding an owner's license.
(5) Premium assessments under this section shall be collected by the Washington horse racing commission and
deposited in the industrial insurance trust funds as provided
under department rules. [1989 c 385 § 1.]
Chapter 51.18
Chapter 51.18 RCW
RETROSPECTIVE RATING PLAN
Sections
51.18.005
51.18.010
51.18.020
51.18.030
51.18.040
51.18.050
51.18.060
51.18.900
Findings.
Availability—Rules—Coverage period.
Entrance criteria.
Sponsoring entities—New or existing retrospective rating
groups.
Retrospective rating groups—Industry and business categories.
Retrospective rating groups—Probationary status—Denial of
future enrollment.
Retrospective rating groups—Department approval.
Severability—1999 c 7.
51.18.005
51.18.005 Findings. The legislature finds that the retrospective rating plan provided for in RCW 51.16.035 has
proven to be highly effective both in terms of improved
workplace safety and injured worker outcomes. As a result,
the number of industrial insurance claims of many employers
participating in the retrospective rating plan have been
reduced through sound risk management strategies and
enhanced cooperation with department claims management
activities.
[Title 51 RCW—page 27]
51.18.010
Title 51 RCW: Industrial Insurance
The legislature further finds that entrance criteria for the
retrospective rating plan under RCW 51.16.035 should be
clear and understandable to both the department and potential
retrospective rating plan participants.
The legislature therefore declares that a new retrospective rating plan is needed in order to protect and preserve the
integrity and welfare of the retrospective rating system.
[1999 c 7 § 1.]
(8) The initial premium level for the retrospective rating
group must be at least one million five hundred thousand dollars and shall be based on the standard premium of the proposed group members' most current previous coverage
period; and
(9) The formation and operation of the retrospective rating group must seek to substantially improve workplace
safety and accident prevention for the employers in the
group. [1999 c 7 § 3.]
51.18.010
51.18.010 Availability—Rules—Coverage period.
(1) The department shall offer a retrospective rating plan to
insure the workers' compensation obligations of employers
and groups of employers. The plan is to be made available to
any employer or group of employers who:
(a) Voluntarily elects to participate in the plan; and
(b) Meets the requirements of this chapter and rules
adopted by the department under subsection (2) of this section.
(2) The retrospective rating plan shall be consistent with
recognized insurance principles and shall be administered
according to rules adopted by the department. Rules adopted
under this section shall encourage broad participation by
qualified employers and sponsors of retrospective rating
groups.
(3) Each retrospective rating group approved by the
department under this chapter shall select a coverage period
and may be renewed at the end of each coverage period. For
the purposes of this section, "coverage period" means a
twelve-month period provided by the department by rule.
[1999 c 7 § 2.]
51.18.020
51.18.020 Entrance criteria. Prior to allowing initial
entrance into the state's retrospective rating plan, the department shall review each proposed retrospective rating group to
ensure that the following criteria are met:
(1) The entity sponsoring the retrospective rating group
must have been in existence for at least four years;
(2) The entity sponsoring the retrospective rating group
must exist primarily for a purpose other than that of obtaining
or offering insurance coverage or insurance related services;
(3) The entity sponsoring the retrospective rating group
must have a written workplace safety and accident prevention
plan in place for the proposed retrospective rating group and
must propose methods by which the retrospective rating
group will cooperate with department claims management
activities;
(4) All employers in the retrospective rating group must
be members of the sponsoring entity;
(5) All employers in the retrospective rating group must
have an industrial insurance account in good standing with
the department;
(6) Fifty percent of the original employers in the retrospective rating group must have been members of the sponsoring entity for one year prior to the group's entrance into the
retrospective rating plan;
(7) The retrospective rating group must be composed of
employers who are substantially similar considering the services or activities performed by the employees of those
employers;
[Title 51 RCW—page 28]
51.18.030
51.18.030 Sponsoring entities—New or existing retrospective rating groups. (1) Entities which sponsored retrospective rating groups prior to July 25, 1999, may not sponsor additional retrospective rating groups in a new business
or industry category until the coverage period beginning January 1, 2003.
(2) For retrospective rating groups approved by the
department on or after July 25, 1999, the sponsoring entity
may not propose another retrospective rating group in a new
business or industry category until the minimum mandatory
adjustment periods required by the department for the first
two coverage periods of the last formed retrospective rating
group are completed.
(3) Subsections (1) and (2) of this section do not prohibit
a sponsoring entity from proposing to:
(a) Divide an existing retrospective rating group into two
or more groups provided that the proposed new groups fall
within the same business or industry category as the group
that is proposed to be divided; or
(b) Merge existing retrospective rating groups into one
business or industry category provided that the proposed
merged groups fall within the same business or industry category as the groups that are proposed to be merged.
(4) Under no circumstances may a sponsoring entity propose retrospective rating groups in multiple business or
industry categories in the same application to the department.
(5) An insurer, insurance broker, agent, or solicitor may
not:
(a) Participate in the formation of a retrospective rating
group; or
(b) Sponsor a retrospective rating group. [1999 c 7 § 4.]
51.18.040
51.18.040 Retrospective rating groups—Industry
and business categories. (1) In order to ensure that all retrospective rating groups are made up of employers who are
substantially similar, considering the services or activities
performed by the employees of those employers, the sponsoring entity of a retrospective rating group shall select a single,
broad industry or business category for each retrospective
rating group. Once an industry or business category is
selected, the department shall allow all risk classifications
reasonably related to that business or industry category into
that retrospective rating group.
(2) The following broad industry and business categories
shall be used by the sponsoring entity and the department in
establishing retrospective rating groups:
(a) Agriculture and related services;
(b) Automotive, truck and boat manufacturing, sales,
repair, and related services;
(c) Construction and related services;
(2004 Ed.)
Actions at Law for Injury or Death
(d) Distillation, chemical production, food, and related
services;
(e) Facilities or property management, maintenance, and
related services;
(f) Government, utilities, schools, health care, and
related services;
(g) Health care, pharmaceutical, laboratories, and related
services;
(h) Logging, wood products manufacturing, and related
services;
(i) Manufacturing, processing, mining, quarrying, and
related services;
(j) Retail stores, wholesale stores, professional services,
and related services;
(k) Temporary help and related services; and
(l) Transportation, recycling, warehousing, facility
maintenance, and related services.
(3) The industry and business categories in subsection
(2) of this section are not exclusive. In response to significant
changes in marketplace demographics or the discovery of
unique business or industry categories, the department may,
by rule, include additional broad industry or business category selections. The department may, by rule, remove an
industry covered within an industry or business category in
the event that the business or industry is no longer found
within this state.
(4) Given the broad nature of the industry and business
categories in subsection (2) of this section, the risk classification or classifications assigned to an individual employer
may appropriately fall into multiple business or industry categories.
(5) In order to simplify administration and keep the
administrative costs associated with devising a different classification system for a retrospective rating plan to a minimum, the state's retrospective rating plan shall follow the
same classification procedure established by the department
to assign workers' compensation insurance classifications to
an employer.
(6) Employers who have been a member of an existing,
approved retrospective rating group prior to July 25, 1999,
may continue in that group even if they are not substantially
similar to the industry or business category selected pursuant
to subsection (1) of this section. However, new employers
proposed for addition to a retrospective rating group on or
after July 25, 1999, must fall within the selected industry or
business category. [1999 c 7 § 5.]
51.18.050 Retrospective rating groups—Probationary status—Denial of future enrollment. (1) Any retrospective rating group required to pay additional net premium
assessments in two consecutive coverage periods shall be
immediately placed on probationary status. Once a group is
placed on probationary status, the department shall review
the group's workplace safety and accident prevention plan
and its methods for cooperation with department claims management activities. Following the review, the department
shall make recommendations for corrective steps that may be
taken to improve the group's performance.
(2) If the same retrospective rating group is required to
pay an additional net premium assessment in the third consecutive coverage period, that group shall be denied future
51.18.050
(2004 Ed.)
51.24.030
enrollment in the state's retrospective rating plan. In addition,
the sponsoring entity of the failed group may not sponsor
another group in the same business or industry category for
five coverage periods from the ending date of the failed
group's last coverage period.
(3) This section applies prospectively only and not retroactively. It applies only to net assessments received by a retrospective rating group for plan years beginning after July 25,
1999. [1999 c 7 § 6.]
51.18.060
51.18.060 Retrospective rating groups—Department
approval. All retrospective rating groups approved by the
department prior to July 25, 1999, under RCW 51.16.035 as
it existed prior to July 25, 1999, remain approved and, with
the exception of RCW 51.18.020, are subject to the provisions of this chapter. [1999 c 7 § 7.]
51.18.900
51.18.900 Severability—1999 c 7. If any provision of
this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1999 c 7 § 10.]
Chapter 51.24 RCW
ACTIONS AT LAW FOR INJURY OR DEATH
Chapter 51.24
Sections
51.24.020
51.24.030
51.24.035
51.24.040
51.24.050
51.24.060
51.24.070
51.24.080
51.24.090
51.24.100
51.24.110
51.24.120
51.24.900
51.24.902
Action against employer for intentional injury.
Action against third person—Election by injured person or
beneficiary—Underinsured motorist insurance coverage.
Immunity of design professional and employees.
Election or recovery no bar to compensation or benefits.
Assignment of cause of action—Disposition of recovered
amount.
Distribution of amount recovered—Lien.
Required election—Procedures—Right of reelection.
Notice of election or copy of complaint to department or selfinsurer—Filing notice.
Compromise or settlement less than benefits.
Right to compensation not pleadable or admissible—Challenge to right to bring action.
Assigned cases—Special assistant attorneys general.
Rules.
Application—1977 ex.s. c 85.
Application—1984 c 218.
51.24.020
51.24.020 Action against employer for intentional
injury. If injury results to a worker from the deliberate intention of his or her employer to produce such injury, the worker
or beneficiary of the worker shall have the privilege to take
under this title and also have cause of action against the
employer as if this title had not been enacted, for any damages in excess of compensation and benefits paid or payable
under this title. [1984 c 218 § 2; 1977 ex.s. c 350 § 31; 1973
1st ex.s. c 154 § 94; 1961 c 23 § 51.24.020. Prior: 1957 c 70
§ 24; prior: 1927 c 310 § 5, part; 1919 c 131 § 5, part; 1911
c 74 § 6, part; RRS § 7680, part.]
Severability—1973 1st ex.s. c 154: See note following RCW 2.12.030.
51.24.030
51.24.030 Action against third person—Election by
injured person or beneficiary—Underinsured motorist
insurance coverage. (1) If a third person, not in a worker's
same employ, is or may become liable to pay damages on
account of a worker's injury for which benefits and compen[Title 51 RCW—page 29]
51.24.035
Title 51 RCW: Industrial Insurance
sation are provided under this title, the injured worker or beneficiary may elect to seek damages from the third person.
(2) In every action brought under this section, the plaintiff shall give notice to the department or self-insurer when
the action is filed. The department or self-insurer may file a
notice of statutory interest in recovery. When such notice has
been filed by the department or self-insurer, the parties shall
thereafter serve copies of all notices, motions, pleadings, and
other process on the department or self-insurer. The department or self-insurer may then intervene as a party in the
action to protect its statutory interest in recovery.
(3) For the purposes of this chapter, "injury" shall
include any physical or mental condition, disease, ailment or
loss, including death, for which compensation and benefits
are paid or payable under this title.
(4) Damages recoverable by a worker or beneficiary pursuant to the underinsured motorist coverage of an insurance
policy shall be subject to this chapter only if the owner of the
policy is the employer of the injured worker.
(5) For the purposes of this chapter, "recovery" includes
all damages except loss of consortium. [1995 c 199 § 2; 1987
c 212 § 1701; 1986 c 58 § 1; 1984 c 218 § 3; 1977 ex.s. c 85
§ 1.]
Severability—1995 c 199: See note following RCW 51.12.120.
51.24.035
51.24.035 Immunity of design professional and
employees. (1) Notwithstanding RCW 51.24.030(1), the
injured worker or beneficiary may not seek damages against
a design professional who is a third person and who has been
retained to perform professional services on a construction
project, or any employee of a design professional who is
assisting or representing the design professional in the performance of professional services on the site of the construction
project, unless responsibility for safety practices is specifically assumed by contract, the provisions of which were
mutually negotiated, or the design professional actually exercised control over the portion of the premises where the
worker was injured.
(2) The immunity provided by this section does not
apply to the negligent preparation of design plans and specifications.
(3) For the purposes of this section, "design professional" means an architect, professional engineer, land surveyor, or landscape architect, who is licensed or authorized
by law to practice such profession, or any corporation organized under chapter 18.100 RCW or authorized under RCW
18.08.420 or 18.43.130 to render design services through the
practice of one or more of such professions. [1987 c 212 §
1801.]
51.24.040
51.24.040 Election or recovery no bar to compensation or benefits. The injured worker or beneficiary shall be
entitled to the full compensation and benefits provided by
this title regardless of any election or recovery made under
this chapter. [1977 ex.s. c 85 § 2.]
51.24.050
51.24.050 Assignment of cause of action—Disposition of recovered amount. (1) An election not to proceed
against the third person operates as an assignment of the
cause of action to the department or self-insurer, which may
[Title 51 RCW—page 30]
prosecute or compromise the action in its discretion in the
name of the injured worker, beneficiary or legal representative.
(2) If an injury to a worker results in the worker's death,
the department or self-insurer to which the cause of action
has been assigned may petition a court for the appointment of
a special personal representative for the limited purpose of
maintaining an action under this chapter and chapter 4.20
RCW.
(3) If a beneficiary is a minor child, an election not to
proceed against a third person on such beneficiary's cause of
action may be exercised by the beneficiary's legal custodian
or guardian.
(4) Any recovery made by the department or self-insurer
shall be distributed as follows:
(a) The department or self-insurer shall be paid the
expenses incurred in making the recovery including reasonable costs of legal services;
(b) The injured worker or beneficiary shall be paid
twenty-five percent of the balance of the recovery made,
which shall not be subject to subsection (5) of this section:
PROVIDED, That in the event of a compromise and settlement by the parties, the injured worker or beneficiary may
agree to a sum less than twenty-five percent;
(c) The department and/or self-insurer shall be paid the
compensation and benefits paid to or on behalf of the injured
worker or beneficiary by the department and/or self-insurer;
and
(d) The injured worker or beneficiary shall be paid any
remaining balance.
(5) Thereafter no payment shall be made to or on behalf
of a worker or beneficiary by the department and/or selfinsurer for such injury until the amount of any further compensation and benefits shall equal any such remaining balance. Thereafter, such benefits shall be paid by the department and/or self-insurer to or on behalf of the worker or beneficiary as though no recovery had been made from a third
person.
(6) When the cause of action has been assigned to the
self-insurer and compensation and benefits have been paid
and/or are payable from state funds for the same injury:
(a) The prosecution of such cause of action shall also be
for the benefit of the department to the extent of compensation and benefits paid and payable from state funds;
(b) Any compromise or settlement of such cause of
action which results in less than the entitlement under this
title is void unless made with the written approval of the
department;
(c) The department shall be reimbursed for compensation and benefits paid from state funds;
(d) The department shall bear its proportionate share of
the costs and reasonable attorneys' fees incurred by the selfinsurer in obtaining the award or settlement; and
(e) Any remaining balance under subsection (4)(d) of
this section shall be applied, under subsection (5) of this section, to reduce the obligations of the department and selfinsurer to pay further compensation and benefits in proportion to which the obligations of each bear to the remaining
entitlement of the worker or beneficiary. [1995 c 199 § 3;
1984 c 218 § 4; 1983 c 211 § 1; 1977 ex.s. c 85 § 3.]
Severability—1995 c 199: See note following RCW 51.12.120.
(2004 Ed.)
Actions at Law for Injury or Death
Applicability—1983 c 211: "Sections 1 and 2 of this act apply to all
actions against third persons in which judgment or settlement of the underlying action has not taken place prior to July 24, 1983." [1983 c 211 § 3.]
"Sections 1 and 2 of this act" consist of the 1983 amendments of RCW
51.24.050 and 51.24.060.
Severability—1983 c 211: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1983 c 211 § 4.]
51.24.060
51.24.060 Distribution of amount recovered—Lien.
(1) If the injured worker or beneficiary elects to seek damages from the third person, any recovery made shall be distributed as follows:
(a) The costs and reasonable attorneys' fees shall be paid
proportionately by the injured worker or beneficiary and the
department and/or self-insurer: PROVIDED, That the
department and/or self-insurer may require court approval of
costs and attorneys' fees or may petition a court for determination of the reasonableness of costs and attorneys' fees;
(b) The injured worker or beneficiary shall be paid
twenty-five percent of the balance of the award: PROVIDED, That in the event of a compromise and settlement by
the parties, the injured worker or beneficiary may agree to a
sum less than twenty-five percent;
(c) The department and/or self-insurer shall be paid the
balance of the recovery made, but only to the extent necessary to reimburse the department and/or self-insurer for benefits paid;
(i) The department and/or self-insurer shall bear its proportionate share of the costs and reasonable attorneys' fees
incurred by the worker or beneficiary to the extent of the benefits paid under this title: PROVIDED, That the department's
and/or self-insurer's proportionate share shall not exceed one
hundred percent of the costs and reasonable attorneys' fees;
(ii) The department's and/or self-insurer's proportionate
share of the costs and reasonable attorneys' fees shall be
determined by dividing the gross recovery amount into the
benefits paid amount and multiplying this percentage times
the costs and reasonable attorneys' fees incurred by the
worker or beneficiary;
(iii) The department's and/or self-insurer's reimbursement share shall be determined by subtracting their proportionate share of the costs and reasonable attorneys' fees from
the benefits paid amount;
(d) Any remaining balance shall be paid to the injured
worker or beneficiary; and
(e) Thereafter no payment shall be made to or on behalf
of a worker or beneficiary by the department and/or selfinsurer for such injury until the amount of any further compensation and benefits shall equal any such remaining balance minus the department's and/or self-insurer's proportionate share of the costs and reasonable attorneys' fees in regards
to the remaining balance. This proportionate share shall be
determined by dividing the gross recovery amount into the
remaining balance amount and multiplying this percentage
times the costs and reasonable attorneys' fees incurred by the
worker or beneficiary. Thereafter, such benefits shall be paid
by the department and/or self-insurer to or on behalf of the
worker or beneficiary as though no recovery had been made
from a third person.
(2004 Ed.)
51.24.060
(2) The recovery made shall be subject to a lien by the
department and/or self-insurer for its share under this section.
(3) The department or self-insurer has sole discretion to
compromise the amount of its lien. In deciding whether or to
what extent to compromise its lien, the department or selfinsurer shall consider at least the following:
(a) The likelihood of collection of the award or settlement as may be affected by insurance coverage, solvency, or
other factors relating to the third person;
(b) Factual and legal issues of liability as between the
injured worker or beneficiary and the third person. Such
issues include but are not limited to possible contributory
negligence and novel theories of liability; and
(c) Problems of proof faced in obtaining the award or
settlement.
(4) In an action under this section, the self-insurer may
act on behalf and for the benefit of the department to the
extent of any compensation and benefits paid or payable from
state funds.
(5) It shall be the duty of the person to whom any recovery is paid before distribution under this section to advise the
department or self-insurer of the fact and amount of such
recovery, the costs and reasonable attorneys' fees associated
with the recovery, and to distribute the recovery in compliance with this section.
(6) The distribution of any recovery made by award or
settlement of the third party action shall be confirmed by
department order, served by registered or certified mail, and
shall be subject to chapter 51.52 RCW. In the event the order
of distribution becomes final under chapter 51.52 RCW, the
director or the director's designee may file with the clerk of
any county within the state a warrant in the amount of the
sum representing the unpaid lien plus interest accruing from
the date the order became final. The clerk of the county in
which the warrant is filed shall immediately designate a superior court cause number for such warrant and the clerk shall
cause to be entered in the judgment docket under the superior
court cause number assigned to the warrant, the name of such
worker or beneficiary mentioned in the warrant, the amount
of the unpaid lien plus interest accrued and the date when the
warrant was filed. The amount of such warrant as docketed
shall become a lien upon the title to and interest in all real and
personal property of the injured worker or beneficiary against
whom the warrant is issued, the same as a judgment in a civil
case docketed in the office of such clerk. The sheriff shall
then proceed in the same manner and with like effect as prescribed by law with respect to execution or other process
issued against rights or property upon judgment in the superior court. Such warrant so docketed shall be sufficient to
support the issuance of writs of garnishment in favor of the
department in the manner provided by law in the case of
judgment, wholly or partially unsatisfied. The clerk of the
cou r t sh all b e entit led to a f ilin g f ee un d er R CW
36.18.012(10), which shall be added to the amount of the
warrant. A copy of such warrant shall be mailed to the injured
worker or beneficiary within three days of filing with the
clerk.
(7) The director, or the director's designee, may issue to
any person, firm, corporation, municipal corporation, political subdivision of the state, public corporation, or agency of
the state, a notice and order to withhold and deliver property
[Title 51 RCW—page 31]
51.24.070
Title 51 RCW: Industrial Insurance
of any kind if he or she has reason to believe that there is in
the possession of such person, firm, corporation, municipal
corporation, political subdivision of the state, public corporation, or agency of the state, property which is due, owing, or
belonging to any worker or beneficiary upon whom a warrant
has been served by the department for payments due to the
state fund. The notice and order to withhold and deliver shall
be served by the sheriff of the county or by the sheriff's deputy; by certified mail, return receipt requested; or by any
authorized representatives of the director. Any person, firm,
corporation, municipal corporation, political subdivision of
the state, public corporation, or agency of the state upon
whom service has been made shall answer the notice within
twenty days exclusive of the day of service, under oath and in
writing, and shall make true answers to the matters inquired
of in the notice and order to withhold and deliver. In the event
there is in the possession of the party named and served with
such notice and order, any property which may be subject to
the claim of the department, such property shall be delivered
forthwith to the director or the director's authorized representative upon demand. If the party served and named in the
notice and order fails to answer the notice and order within
the time prescribed in this section, the court may, after the
time to answer such order has expired, render judgment by
default against the party named in the notice for the full
amount claimed by the director in the notice together with
costs. In the event that a notice to withhold and deliver is
served upon an employer and the property found to be subject
thereto is wages, the employer may assert in the answer to all
exemptions provided for by chapter 6.27 RCW to which the
wage earner may be entitled. [2001 c 146 § 9; 1995 c 199 §
4; 1993 c 496 § 2; 1987 c 442 § 1118; 1986 c 305 § 403; 1984
c 218 § 5; 1983 c 211 § 2; 1977 ex.s. c 85 § 4.]
Severability—1995 c 199: See note following RCW 51.12.120.
Effective date—Application—1993 c 496: See notes following RCW
4.22.070.
Preamble—Report to legislature—Applicability—Severability—
1986 c 305: See notes following RCW 4.16.160.
Applicability—Severability—1983 c 211: See notes following RCW
51.24.050.
51.24.070
51.24.070 Required election—Procedures—Right of
reelection. (1) The department or self-insurer may require
the injured worker or beneficiary to exercise the right of election under this chapter by serving a written demand by registered mail, certified mail, or personal service on the worker or
beneficiary.
(2) Unless an election is made within sixty days of the
receipt of the demand, and unless an action is instituted or
settled within the time granted by the department or selfinsurer, the injured worker or beneficiary is deemed to have
assigned the action to the department or self-insurer. The
department or self-insurer shall allow the worker or beneficiary at least ninety days from the election to institute or settle the action. When a beneficiary is a minor child the demand
shall be served upon the legal custodian or guardian of such
beneficiary.
(3) If an action which has been filed is not diligently
prosecuted, the department or self-insurer may petition the
court in which the action is pending for an order assigning the
cause of action to the department or self-insurer. Upon a suf[Title 51 RCW—page 32]
ficient showing of a lack of diligent prosecution the court in
its discretion may issue the order.
(4) If the department or self-insurer has taken an assignment of the third party cause of action under subsection (2) of
this section, the injured worker or beneficiary may, at the discretion of the department or self-insurer, exercise a right of
reelection and assume the cause of action subject to reimbursement of litigation expenses incurred by the department
or self-insurer. [1984 c 218 § 6; 1977 ex.s. c 85 § 5.]
51.24.080
51.24.080 Notice of election or copy of complaint to
department or self-insurer—Filing notice. (1) If the
injured worker or beneficiary elects to seek damages from the
third person, notice of the election must be given to the
department or self-insurer. The notice shall be by registered
mail, certified mail, or personal service. If an action is filed
by the injured worker or beneficiary, a copy of the complaint
must be sent by registered mail to the department or selfinsurer.
(2) A return showing service of the notice on the department or self-insurer shall be filed with the court but shall not
be part of the record except as necessary to give notice to the
defendant of the lien imposed by RCW 51.24.060(2). [1977
ex.s. c 85 § 6.]
51.24.090
51.24.090 Compromise or settlement less than benefits. (1) Any compromise or settlement of the third party
cause of action by the injured worker or beneficiary which
results in less than the entitlement under this title is void
unless made with the written approval of the department or
self-insurer: PROVIDED, That for the purposes of this chapter, "entitlement" means benefits and compensation paid and
estimated by the department to be paid in the future.
(2) If a compromise or settlement is void because of subsection (1) of this section, the department or self-insurer may
petition the court in which the action was filed for an order
assigning the cause of action to the department or selfinsurer. If an action has not been filed, the department or selfinsurer may proceed as provided in chapter 7.24 RCW.
[1995 c 199 § 5; 1984 c 218 § 7; 1977 ex.s. c 85 § 7.]
Severability—1995 c 199: See note following RCW 51.12.120.
51.24.100
51.24.100 Right to compensation not pleadable or
admissible—Challenge to right to bring action. The fact
that the injured worker or beneficiary is entitled to compensation under this title shall not be pleaded or admissible in evidence in any third party action under this chapter. Any challenge of the right to bring such action shall be made by supplemental pleadings only and shall be decided by the court as
a matter of law. [1977 ex.s. c 85 § 8.]
51.24.110
51.24.110 Assigned cases—Special assistant attorneys general. (1) Actions against third persons that are
assigned by the claimant to the department, voluntarily or by
operation of law in accordance with chapter 51.24 RCW,
may be prosecuted by special assistant attorneys general.
(2) The attorney general shall select special assistant
attorneys general from a list compiled by the department and
the Washington state bar association. The attorney general, in
conjunction with the department and the Washington state
(2004 Ed.)
Notice and Report of Accident—Application for Compensation
bar association, shall promulgate rules and regulations outlining the criteria and the procedure by which private attorneys
may have their names placed on the list of attorneys available
for appointment as special assistant attorneys general to litigate third party actions under subsection (1) of this section.
[1984 c 218 § 1.]
51.24.120
51.24.120 Rules. The department may adopt, amend,
and rescind under chapter 34.05 RCW such rules as may be
necessary to the administration of this chapter. [1984 c 218 §
8.]
51.28.020
tic services under RCW 51.36.015, and must list the types of
providers authorized to provide these services. [2004 c 65 §
3; 2001 c 231 § 1; 1977 ex.s. c 350 § 32; 1975 1st ex.s. c 224
§ 4; 1971 ex.s. c 289 § 5; 1961 c 23 § 51.28.010. Prior: 1915
c 188 § 9; 1911 c 74 § 14; RRS § 7689.]
Report to legislature—Effective date—Expiration date—Severability—2004 c 65: See notes following RCW 51.04.030.
Effective date—2001 c 231: "This act takes effect January 1, 2002."
[2001 c 231 § 4.]
Effective date—1975 ex.s. c 224: See note following RCW 51.04.110.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.24.900
51.24.900 Application—1977 ex.s. c 85. This 1977
amendatory act shall apply only to causes of action which
arise on or after its effective date. [1977 ex.s. c 85 § 9.]
51.24.902
51.24.902 Application—1984 c 218. This act applies
to all causes of action against third persons in which judgment or settlement of the underlying action has not taken
place before June 7, 1984. [1984 c 218 § 9.]
Chapter 51.28 RCW
NOTICE AND REPORT OF ACCIDENT—
APPLICATION FOR COMPENSATION
Chapter 51.28
Sections
51.28.010
51.28.020
51.28.021
51.28.025
51.28.030
51.28.040
51.28.050
51.28.055
51.28.060
51.28.070
51.28.080
51.28.090
Notice of accident—Notification of worker's rights.
Worker's application for compensation—Physician or licensed
advanced registered nurse practitioner to aid in.
Physician assistants aid in applications for compensation—
Limitations—Rules.
Duty of employer to report injury or disease—Contents—Penalty.
Beneficiaries' application for compensation—Notification of
rights.
Application for change in compensation.
Time limitation for filing application or enforcing claim for
injury.
Time limitation for filing claim for occupational disease—
Notice—Hearing loss claims—Rules.
Proof of dependency.
Claim files and records confidential.
Determination of compensation for temporary total disability—Notification of employer.
Notification of availability of basic health plan.
51.28.010
51.28.010 Notice of accident—Notification of
worker's rights. (Effective June 30, 2007.) (1) Whenever
any accident occurs to any worker it shall be the duty of such
worker or someone in his or her behalf to forthwith report
such accident to his or her employer, superintendent, or
supervisor in charge of the work, and of the employer to at
once report such accident and the injury resulting therefrom
to the department pursuant to RCW 51.28.025 where the
worker has received treatment from a physician, has been
hospitalized, disabled from work, or has died as the apparent
result of such accident and injury.
(2) Upon receipt of such notice of accident, the department shall immediately forward to the worker or his or her
beneficiaries or dependents notification, in nontechnical language, of their rights under this title. The notice must specify
the worker's right to receive health services from a physician
of the worker's choice under RCW 51.36.010, including chiropractic services under RCW 51.36.015, and must list the
types of providers authorized to provide these services.
[2001 c 231 § 1; 1977 ex.s. c 350 § 32; 1975 1st ex.s. c 224 §
4; 1971 ex.s. c 289 § 5; 1961 c 23 § 51.28.010. Prior: 1915 c
188 § 9; 1911 c 74 § 14; RRS § 7689.]
Effective date—2001 c 231: "This act takes effect January 1, 2002."
[2001 c 231 § 4.]
Effective date—1975 ex.s. c 224: See note following RCW 51.04.110.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.28.020
51.28.010
51.28.010 Notice of accident—Notification of
worker's rights. (Expires June 30, 2007.) (1) Whenever
any accident occurs to any worker it shall be the duty of such
worker or someone in his or her behalf to forthwith report
such accident to his or her employer, superintendent, or
supervisor in charge of the work, and of the employer to at
once report such accident and the injury resulting therefrom
to the department pursuant to RCW 51.28.025 where the
worker has received treatment from a physician or a licensed
advanced registered nurse practitioner, has been hospitalized,
disabled from work, or has died as the apparent result of such
accident and injury.
(2) Upon receipt of such notice of accident, the department shall immediately forward to the worker or his or her
beneficiaries or dependents notification, in nontechnical language, of their rights under this title. The notice must specify
the worker's right to receive health services from a physician
or a licensed advanced registered nurse practitioner of the
worker's choice under RCW 51.36.010, including chiroprac(2004 Ed.)
51.28.020 Worker's application for compensation—
Physician or licensed advanced registered nurse practitioner to aid in. (Expires June 30, 2007.) (1)(a) Where a
worker is entitled to compensation under this title he or she
shall file with the department or his or her self-insured
employer, as the case may be, his or her application for such,
together with the certificate of the physician or licensed
advanced registered nurse practitioner who attended him or
her. An application form developed by the department shall
include a notice specifying the worker's right to receive
health services from a physician or licensed advanced registered nurse practitioner of the worker's choice under RCW
51.36.010, including chiropractic services under RCW
51.36.015, and listing the types of providers authorized to
provide these services.
(b) The physician or licensed advanced registered nurse
practitioner who attended the injured worker shall inform the
injured worker of his or her rights under this title and lend all
necessary assistance in making this application for compensation and such proof of other matters as required by the rules
[Title 51 RCW—page 33]
51.28.020
Title 51 RCW: Industrial Insurance
of the department without charge to the worker. The department shall provide physicians with a manual which outlines
the procedures to be followed in applications for compensation involving occupational diseases, and which describes
claimants' rights and responsibilities related to occupational
disease claims.
(2) If application for compensation is made to a selfinsured employer, he or she shall forthwith send a copy of the
application to the department. [2004 c 65 § 4; 2001 c 231 §
2; 1984 c 159 § 3; 1977 ex.s. c 350 § 33; 1971 ex.s. c 289 §
38; 1961 c 23 § 51.28.020. Prior: 1927 c 310 § 6, part; 1921
c 182 § 7, part; 1911 c 74 § 12, part; RRS § 7686, part.]
trial injuries using diagnosis codes and other relevant criteria.
[2004 c 163 § 1.]
Report to legislature—2004 c 163: "By December 1, 2006, the department of labor and industries shall report to the senate committee on commerce and trade and the house committee on commerce and labor, or successor committees, on the implementation of this act, including but not limited
to the effects of this act on injured worker outcomes, claim costs, and disputed claims." [2004 c 163 § 2.]
Effective date—2004 c 163: "This act takes effect July 1, 2004." [2004
c 163 § 3.]
Expiration date—2004 c 163: "Sections 1 and 2 of this act expire July
1, 2007." [2004 c 163 § 4.]
51.28.025
Report to legislature—Effective date—Expiration date—Severability—2004 c 65: See notes following RCW 51.04.030.
Effective date—2001 c 231: See note following RCW 51.28.010.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.28.020
51.28.020 Worker's application for compensation—
Physician to aid in. (Effective June 30, 2007.) (1)(a)
Where a worker is entitled to compensation under this title he
or she shall file with the department or his or her self-insured
employer, as the case may be, his or her application for such,
together with the certificate of the physician who attended
him or her. An application form developed by the department
shall include a notice specifying the worker's right to receive
health services from a physician of the worker's choice under
RCW 51.36.010, including chiropractic services under RCW
51.36.015, and listing the types of providers authorized to
provide these services.
(b) The physician who attended the injured worker shall
inform the injured worker of his or her rights under this title
and lend all necessary assistance in making this application
for compensation and such proof of other matters as required
by the rules of the department without charge to the worker.
The department shall provide physicians with a manual
which outlines the procedures to be followed in applications
for compensation involving occupational diseases, and which
describes claimants' rights and responsibilities related to
occupational disease claims.
(2) If application for compensation is made to a selfinsured employer, he or she shall forthwith send a copy of the
application to the department. [2001 c 231 § 2; 1984 c 159 §
3; 1977 ex.s. c 350 § 33; 1971 ex.s. c 289 § 38; 1961 c 23 §
51.28.020. Prior: 1927 c 310 § 6, part; 1921 c 182 § 7, part;
1911 c 74 § 12, part; RRS § 7686, part.]
Effective date—2001 c 231: See note following RCW 51.28.010.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.28.025 Duty of employer to report injury or disease—Contents—Penalty. (Expires June 30, 2007.) (1)
Whenever an employer has notice or knowledge of an injury
or occupational disease sustained by any worker in his or her
employment who has received treatment from a physician or
a licensed advanced registered nurse practitioner, has been
hospitalized, disabled from work or has died as the apparent
result of such injury or occupational disease, the employer
shall immediately report the same to the department on forms
prescribed by it. The report shall include:
(a) The name, address, and business of the employer;
(b) The name, address, and occupation of the worker;
(c) The date, time, cause, and nature of the injury or
occupational disease;
(d) Whether the injury or occupational disease arose in
the course of the injured worker's employment;
(e) All available information pertaining to the nature of
the injury or occupational disease including but not limited to
any visible signs, any complaints of the worker, any time lost
from work, and the observable effect on the worker's bodily
functions, so far as is known; and
(f) Such other pertinent information as the department
may prescribe by regulation.
(2) Failure or refusal to file the report required by subsection (1) shall subject the offending employer to a penalty
determined by the director but not to exceed two hundred
fifty dollars for each offense, to be collected in a civil action
in the name of the department and paid into the supplemental
pension fund. [2004 c 65 § 5; 1987 c 185 § 32; 1985 c 347 §
1; 1975 1st ex.s. c 224 § 5; 1971 ex.s. c 289 § 39.]
Report to legislature—Effective date—Expiration date—Severability—2004 c 65: See notes following RCW 51.04.030.
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.28.021
51.28.021 Physician assistants aid in applications for
compensation—Limitations—Rules. (Expires July 1,
2007.) Physician assistants practicing with physician supervision as required by chapters 18.57A and 18.71A RCW may
assist workers who suffer simple industrial injuries in making
application for compensation under this title as specified in
RCW 51.28.020. Physician assistants may not rate a worker's
permanent partial disability under RCW 51.32.055, or determine a worker's entitlement to benefits under chapter 51.32
RCW. The department shall adopt rules necessary to implement this section, including rules identifying simple indus[Title 51 RCW—page 34]
51.28.025
51.28.025 Duty of employer to report injury or disease—Contents—Penalty. (Effective June 30, 2007.) (1)
Whenever an employer has notice or knowledge of an injury
or occupational disease sustained by any worker in his or her
employment who has received treatment from a physician,
has been hospitalized, disabled from work or has died as the
apparent result of such injury or occupational disease, the
employer shall immediately report the same to the department on forms prescribed by it. The report shall include:
(a) The name, address, and business of the employer;
(2004 Ed.)
Notice and Report of Accident—Application for Compensation
(b) The name, address, and occupation of the worker;
(c) The date, time, cause, and nature of the injury or
occupational disease;
(d) Whether the injury or occupational disease arose in
the course of the injured worker's employment;
(e) All available information pertaining to the nature of
the injury or occupational disease including but not limited to
any visible signs, any complaints of the worker, any time lost
from work, and the observable effect on the worker's bodily
functions, so far as is known; and
(f) Such other pertinent information as the department
may prescribe by regulation.
(2) Failure or refusal to file the report required by subsection (1) shall subject the offending employer to a penalty
determined by the director but not to exceed two hundred
fifty dollars for each offense, to be collected in a civil action
in the name of the department and paid into the supplemental
pension fund. [1987 c 185 § 32; 1985 c 347 § 1; 1975 1st
ex.s. c 224 § 5; 1971 ex.s. c 289 § 39.]
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.28.055
under this section, notification, in nontechnical language, of
their rights under this title. [1972 ex.s. c 43 § 17; 1971 ex.s.
c 289 § 6; 1961 c 23 § 51.28.030. Prior: 1927 c 310 § 6, part;
1921 c 182 § 7, part; 1911 c 74 § 12, part; RRS § 7686, part.]
51.28.040
51.28.040 Application for change in compensation. If
change of circumstances warrants an increase or rearrangement of compensation, like application shall be made therefor. Where the application has been granted, compensation
and other benefits if in order shall be allowed for periods of
time up to sixty days prior to the receipt of such application.
[1977 ex.s. c 199 § 1; 1961 c 23 § 51.28.040. Prior: 1927 c
310 § 6, part; 1921 c 182 § 7, part; 1911 c 74 § 12, part; RRS
§ 7686, part.]
51.28.050
51.28.050 Time limitation for filing application or
enforcing claim for injury. No application shall be valid or
claim thereunder enforceable unless filed within one year
after the day upon which the injury occurred or the rights of
dependents or beneficiaries accrued, except as provided in
RCW 51.28.055. [1984 c 159 § 1; 1961 c 23 § 51.28.050.
Prior: 1927 c 310 § 6, part; 1921 c 182 § 7, part; 1911 c 74 §
12, part; RRS § 7686, part.]
51.28.055
51.28.030
51.28.030 Beneficiaries' application for compensation—Notification of rights. (Expires June 30, 2007.)
Where death results from injury the parties entitled to compensation under this title, or someone in their behalf, shall
make application for the same to the department or selfinsurer as the case may be, which application must be accompanied with proof of death and proof of relationship showing
the parties to be entitled to compensation under this title, certificates of attending physician or licensed advanced registered nurse practitioner, if any, and such proof as required by
the rules of the department.
Upon receipt of notice of accident under RCW
51.28.010, the director shall immediately forward to the party
or parties required to make application for compensation
under this section, notification, in nontechnical language, of
their rights under this title. [2004 c 65 § 6; 1972 ex.s. c 43 §
17; 1971 ex.s. c 289 § 6; 1961 c 23 § 51.28.030. Prior: 1927
c 310 § 6, part; 1921 c 182 § 7, part; 1911 c 74 § 12, part;
RRS § 7686, part.]
Report to legislature—Effective date—Expiration date—Severability—2004 c 65: See notes following RCW 51.04.030.
51.28.030
51.28.030 Beneficiaries' application for compensation—Notification of rights. (Effective June 30, 2007.)
Where death results from injury the parties entitled to compensation under this title, or someone in their behalf, shall
make application for the same to the department or selfinsurer as the case may be, which application must be accompanied with proof of death and proof of relationship showing
the parties to be entitled to compensation under this title, certificates of attending physician, if any, and such proof as
required by the rules of the department.
Upon receipt of notice of accident under RCW
51.28.010, the director shall immediately forward to the party
or parties required to make application for compensation
(2004 Ed.)
51.28.055 Time limitation for filing claim for occupational disease—Notice—Hearing loss claims—Rules.
(Expires June 30, 2007.) (1) Except as provided in subsection (2) of this section for claims filed for occupational hearing loss, claims for occupational disease or infection to be
valid and compensable must be filed within two years following the date the worker had written notice from a physician or
a licensed advanced registered nurse practitioner: (a) Of the
existence of his or her occupational disease, and (b) that a
claim for disability benefits may be filed. The notice shall
also contain a statement that the worker has two years from
the date of the notice to file a claim. The physician or
licensed advanced registered nurse practitioner shall file the
notice with the department. The department shall send a
copy to the worker and to the self-insurer if the worker's
employer is self-insured. However, a claim is valid if it is
filed within two years from the date of death of the worker
suffering from an occupational disease.
(2)(a) Except as provided in (b) of this subsection, to be
valid and compensable, claims for hearing loss due to occupational noise exposure must be filed within two years of the
date of the worker's last injurious exposure to occupational
noise in employment covered under this title or within one
year of September 10, 2003, whichever is later.
(b) A claim for hearing loss due to occupational noise
exposure that is not timely filed under (a) of this subsection
can only be allowed for medical aid benefits under chapter
51.36 RCW.
(3) The department may adopt rules to implement this
section. [2004 c 65 § 7; 2003 2nd sp.s. c 2 § 1; 1984 c 159 §
2; 1977 ex.s. c 350 § 34; 1961 c 23 § 51.28.055. Prior: 1959
c 308 § 18; prior: 1957 c 70 § 16, part; 1951 c 236 § 1, part.]
Report to legislature—Effective date—Expiration date—Severability—2004 c 65: See notes following RCW 51.04.030.
[Title 51 RCW—page 35]
51.28.055
Title 51 RCW: Industrial Insurance
51.28.055 Time limitation for filing claim for occupational disease—Notice—Hearing loss claims—Rules.
(Effective June 30, 2007.) (1) Except as provided in subsection (2) of this section for claims filed for occupational hearing loss, claims for occupational disease or infection to be
valid and compensable must be filed within two years following the date the worker had written notice from a physician:
(a) Of the existence of his or her occupational disease, and (b)
that a claim for disability benefits may be filed. The notice
shall also contain a statement that the worker has two years
from the date of the notice to file a claim. The physician shall
file the notice with the department. The department shall
send a copy to the worker and to the self-insurer if the
worker's employer is self-insured. However, a claim is valid
if it is filed within two years from the date of death of the
worker suffering from an occupational disease.
(2)(a) Except as provided in (b) of this subsection, to be
valid and compensable, claims for hearing loss due to occupational noise exposure must be filed within two years of the
date of the worker's last injurious exposure to occupational
noise in employment covered under this title or within one
year of September 10, 2003, whichever is later.
(b) A claim for hearing loss due to occupational noise
exposure that is not timely filed under (a) of this subsection
can only be allowed for medical aid benefits under chapter
51.36 RCW.
(3) The department may adopt rules to implement this
section. [2003 2nd sp.s. c 2 § 1; 1984 c 159 § 2; 1977 ex.s. c
350 § 34; 1961 c 23 § 51.28.055. Prior: 1959 c 308 § 18;
prior: 1957 c 70 § 16, part; 1951 c 236 § 1, part.]
51.28.055
51.28.060
51.28.060 Proof of dependency. A dependent shall at
all times furnish the department with proof satisfactory to the
director of the nature, amount and extent of the contribution
made by the deceased worker.
Proof of dependency by any beneficiary residing without
the United States shall be made before the nearest United
States consul or consular agency, under the seal of such consul or consular agent, and the department may cause any warrant or warrants to which such beneficiary is entitled to be
transmitted to the beneficiary through the nearest United
States consul or consular agent. [1977 ex.s. c 350 § 35; 1961
c 23 § 51.28.060. Prior: 1957 c 70 § 25; prior: (i) 1939 c 41
§ 2, part; 1929 c 132 § 1, part; 1927 c 310 § 2, part; 1921 c
182 § 2, part; 1919 c 131 § 2, part; 1917 c 120 § 1, part; 1911
c 74 § 3, part; RRS § 7675, part. (ii) 1947 c 56 § 1, part; 1927
c 310 § 7, part; 1923 c 136 § 4, part; 1921 c 182 § 6, part;
1919 c 131 § 6, part; 1911 c 74 § 10, part; Rem. Supp. 1947
§ 7684, part.]
51.28.070
51.28.070 Claim files and records confidential. Information contained in the claim files and records of injured
workers, under the provisions of this title, shall be deemed
confidential and shall not be open to public inspection (other
than to public employees in the performance of their official
duties), but representatives of a claimant, be it an individual
or an organization, may review a claim file or receive specific
information therefrom upon the presentation of the signed
authorization of the claimant. A claimant may review his or
her claim file if the director determines, pursuant to criteria
adopted by rule, that the review is in the claimant's interest.
[Title 51 RCW—page 36]
Employers or their duly authorized representatives may
review any files of their own injured workers in connection
with any pending claims. Physicians treating or examining
workers claiming benefits under this title, or physicians giving medical advice to the department regarding any claim
may, at the discretion of the department, inspect the claim
files and records of injured workers, and other persons may
make such inspection, at the department's discretion, when
such persons are rendering assistance to the department at
any stage of the proceedings on any matter pertaining to the
administration of this title. [1990 c 209 § 2; 1977 ex.s. c 350
§ 36; 1975 1st ex.s. c 224 § 6; 1961 c 23 § 51.28.070. Prior:
1957 c 70 § 51.]
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
51.28.080
51.28.080 Determination of compensation for temporary total disability—Notification of employer. An
employer shall be promptly notified by the department when
it has determined that a worker of that employer is entitled to
compensation under RCW 51.32.090. Notification shall
include, in nontechnical language, an explanation of the
employer's rights under this title. [1985 c 338 § 2.]
51.28.090
51.28.090 Notification of availability of basic health
plan. The director shall notify persons receiving time-loss
payments under this chapter of the availability of basic health
care coverage to qualified enrollees under chapter 70.47
RCW, unless the Washington basic health plan administrator
has notified the director of closure of enrollment in the plan.
The director shall maintain supplies of Washington basic
health plan enrollment application forms in all field service
offices where the plan is available, which shall be provided in
reasonably necessary quantities by the administrator for the
use of persons wishing to apply for enrollment in the Washington basic health plan. [1987 1st ex.s. c 5 § 17.]
Severability—1987 1st ex.s. c 5: See note following RCW 70.47.901.
Chapter 51.32 RCW
COMPENSATION—RIGHT TO AND AMOUNT
Chapter 51.32
Sections
51.32.010
51.32.015
51.32.020
51.32.025
51.32.030
51.32.040
51.32.045
51.32.050
51.32.055
51.32.060
51.32.067
51.32.072
51.32.073
51.32.075
51.32.080
51.32.090
Who entitled to compensation.
Time and place of coverage—Lunch period.
Who not entitled to compensation.
Payments for children cease at age eighteen—Exceptions.
When compensation payable to employer or member of corporate employer.
Protection of awards—Payment after death—Time limitations
for filing—Confinement in institution.
Direct deposit of benefits.
Death benefits.
Determination of permanent disabilities—Closure of claims
by self-insurers.
Permanent total disability compensation—Personal attendant.
Permanent total disability—Death benefit options—Election.
Additional payments for prior pensioners—Children—Remarriage—Attendant.
Additional payments for prior pensioners—Premium liability
of worker and employer for additional payments.
Adjustments in compensation or death benefits.
Permanent partial disability—Specified—Unspecified, rules
for classification—Injury after permanent partial disability.
Temporary total disability—Partial restoration of earning
power—Return to available work—When employer continues wages—Limitations.
(2004 Ed.)
Compensation—Right to and Amount
51.32.095
51.32.098
51.32.100
51.32.110
51.32.112
51.32.114
51.32.120
51.32.130
51.32.135
51.32.140
51.32.150
51.32.160
51.32.180
51.32.185
51.32.190
51.32.195
51.32.200
51.32.210
51.32.215
51.32.220
51.32.225
51.32.230
51.32.240
51.32.250
51.32.260
51.32.300
51.32.350
51.32.360
51.32.370
51.32.380
Vocational rehabilitation services—Benefits—Priorities—
Allowable costs—Performance criteria.
Vocational rehabilitation services—Applicability.
Preexisting disease.
Medical examination—Refusal to submit—Traveling
expenses—Pay for time lost.
Medical examination—Standards and criteria—Special examinations by chiropractors—Compensation guidelines and
reporting criteria.
Medical examination—Department to monitor quality and
objectivity.
Further accident after lump sum payment.
Lump sum for death or permanent total disability.
Closing of claim in pension cases—Consent of spouse.
Nonresident alien beneficiary.
Lump sum to beneficiary outside state.
Aggravation, diminution, or termination.
Occupational diseases—Limitation.
Occupational diseases—Presumption of occupational disease
for fire fighters—Limitations—Exception—Rules.
Self-insurers—Notice of denial of claim, reasons—Procedure—Powers and duties of director.
Self-insurers—Information to department.
Self-insurers—Enforcement of compensation order against.
Claims of injured workers, prompt action—Payment—Acceptance—Effect.
Payment of compensation after appeal—Enforcement of
order—Penalty.
Reduction in total disability compensation—Limitations—
Notice—Waiver.
Reduction in total disability compensation—Offset for social
security retirement benefits.
Recovery of overpayments.
Erroneous payments—Payments induced by willful misrepresentation—Adjustment for self-insurer's failure to pay benefits—Penalty—Appeal—Enforcement of orders.
Payment of job modification costs.
Compensation for loss or damage to personal effects.
State employee vocational rehabilitation coordinator.
Chemically related illness—Criteria and procedures for
claims—Claims management.
Chemically related illness—Centers for research and clinical
assessment.
Chemically related illness—Research projects—Implementation plan—Funding—Deductions from employees' pay.
Injured offenders—Benefits sent in the care of the department
of corrections—Exception—Liability.
Victims of crimes, benefits: Chapter 7.68 RCW.
51.32.010 Who entitled to compensation. Each
worker injured in the course of his or her employment, or his
or her family or dependents in case of death of the worker,
shall receive compensation in accordance with this chapter,
and, except as in this title otherwise provided, such payment
shall be in lieu of any and all rights of action whatsoever
against any person whomsoever: PROVIDED, That if an
injured worker, or the surviving spouse of an injured worker
shall not have the legal custody of a child for, or on account
of whom payments are required to be made under this title,
such payment or payments shall be made to the person or persons having the legal custody of such child but only for the
periods of time after the department has been notified of the
fact of such legal custody, and it shall be the duty of any such
person or persons receiving payments because of legal custody of any child immediately to notify the department of any
change in such legal custody. [1977 ex.s. c 350 § 37; 1975
1st ex.s. c 224 § 7; 1971 ex.s. c 289 § 40; 1961 c 23 §
51.32.010. Prior: 1957 c 70 § 26; prior: 1949 c 219 § 1, part;
1947 c 246 § 1, part; 1929 c 132 § 2, part; 1927 c 310 § 4,
part; 1923 c 136 § 2, part; 1919 c 131 § 4, part; 1917 c 28 § 1,
part; 1913 c 148 § 1, part; 1911 c 74 § 5, part; Rem. Supp.
1949 § 7679, part.]
51.32.010
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
(2004 Ed.)
51.32.025
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.32.015
51.32.015 Time and place of coverage—Lunch
period. The benefits of Title 51 RCW shall be provided to
each worker receiving an injury, as defined therein, during
the course of his or her employment and also during his or her
lunch period as established by the employer while on the jobsite. The jobsite shall consist of the premises as are occupied,
used or contracted for by the employer for the business or
work process in which the employer is then engaged: PROVIDED, That if a worker by reason of his or her employment
leaves such jobsite under the direction, control or request of
the employer and if such worker is injured during his or her
lunch period while so away from the jobsite, the worker shall
receive the benefits as provided herein: AND PROVIDED
FURTHER, That the employer need not consider the lunch
period in his or her payroll for the purpose of reporting to the
department unless the worker is actually paid for such period
of time. [1977 ex.s. c 350 § 38; 1971 ex.s. c 289 § 41; 1961
c 107 § 1.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.32.020
51.32.020 Who not entitled to compensation. If injury
or death results to a worker from the deliberate intention of
the worker himself or herself to produce such injury or death,
or while the worker is engaged in the attempt to commit, or
the commission of, a felony, neither the worker nor the
widow, widower, child, or dependent of the worker shall
receive any payment under this title.
If injury or death results to a worker from the deliberate
intention of a beneficiary of that worker to produce the injury
or death, or if injury or death results to a worker as a consequence of a beneficiary of that worker engaging in the
attempt to commit, or the commission of, a felony, the beneficiary shall not receive any payment under this title.
An invalid child, while being supported and cared for in
a state institution, shall not receive compensation under this
chapter.
No payment shall be made to or for a natural child of a
deceased worker and, at the same time, as the stepchild of a
deceased worker. [1995 c 160 § 2; 1977 ex.s. c 350 § 39;
1971 ex.s. c 289 § 42; 1961 c 23 § 51.32.020. Prior: 1957 c
70 § 27; prior: (i) 1927 c 310 § 5, part; 1919 c 131 § 5, part;
1911 c 74 § 6, part; RRS § 7680, part. (ii) 1949 c 219 § 1,
part; 1947 c 246 § 1, part; 1929 c 132 § 2, part; 1927 c 310 §
4, part; 1923 c 136 § 2, part; 1919 c 131 § 4, part; 1917 c 28
§ 1, part; 1913 c 148 § 1, part; 1911 c 74 § 5, part; Rem. Supp.
1949 § 7679, part.]
Application—1995 c 160 §§ 2 and 3: "Sections 2 and 3 of this act shall
apply from July 23, 1995, without regard to the date of injury or the date of
filing a claim." [1995 c 160 § 8.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.32.025
51.32.025 Payments for children cease at age eighteen—Exceptions. Any payments to or on account of any
child or children of a deceased or temporarily or totally permanently disabled worker pursuant to any of the provisions
of chapter 51.32 RCW shall terminate when any such child
[Title 51 RCW—page 37]
51.32.030
Title 51 RCW: Industrial Insurance
reaches the age of eighteen years unless such child is a dependent invalid child or is permanently enrolled at a full time
course in an accredited school, in which case such payments
after age eighteen shall be made directly to such child. Payments to any dependent invalid child over the age of eighteen
years shall continue in the amount previously paid on account
of such child until he shall cease to be dependent. Payments
to any child over the age of eighteen years permanently
enrolled at a full time course in an accredited school shall
continue in the amount previously paid on account of such
child until the child reaches an age over that provided for in
the definition of "child" in this title or ceases to be permanently enrolled whichever occurs first. Where the worker sustains an injury or dies when any of the worker's children is
over the age of eighteen years and is either a dependent
invalid child or is a child permanently enrolled at a full time
course in an accredited school the payment to or on account
of any such child shall be made as herein provided. [1987 c
185 § 33; 1975 1st ex.s. c 224 § 11.]
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
51.32.030
51.32.030 When compensation payable to employer
or member of corporate employer. Any sole proprietor,
partner, or joint venturer who has requested coverage under
this title and who shall thereafter be injured or sustain an
occupational disease, shall be entitled to the benefit of this
title, as and under the same circumstances and subject to the
same obligations as a worker: PROVIDED, That no such
person or the beneficiaries thereof shall be entitled to benefits
under this title unless the department has received notice in
writing of such request on such forms as the department may
provide prior to the date of the injury or occupational disease
as the result of which claims are made: PROVIDED, That
the department shall have the power to cancel the personal
coverage of any such person if any required payments or
reports have not been made. [1980 c 14 § 8. Prior: 1977 ex.s.
c 350 § 40; 1977 ex.s. c 323 § 14; 1961 c 23 § 51.32.030;
prior: 1957 c 70 § 28; prior: 1939 c 41 § 2, part; 1929 c 132
§ 1, part; 1927 c 310 § 2, part; 1921 c 182 § 2, part; 1919 c
131 § 2, part; 1917 c 120 § 1, part; 1911 c 74 § 3, part; RRS
§ 7675, part.]
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
51.32.040
51.32.040 Protection of awards—Payment after
death—Time limitations for filing—Confinement in institution. (1) Except as provided in RCW 43.20B.720,
72.09.111, 74.20A.260, and 51.32.380, no money paid or
payable under this title shall, before the issuance and delivery
of the check or warrant, be assigned, charged, or taken in execution, attached, garnished, or pass or be paid to any other
person by operation of law, any form of voluntary assignment, or power of attorney. Any such assignment or charge
is void unless the transfer is to a financial institution at the
request of a worker or other beneficiary and made in accordance with RCW 51.32.045.
(2)(a) If any worker suffers (i) a permanent partial injury
and dies from some other cause than the accident which pro[Title 51 RCW—page 38]
duced the injury before he or she receives payment of the
award for the permanent partial injury or (ii) any other injury
before he or she receives payment of any monthly installment
covering any period of time before his or her death, the
amount of the permanent partial disability award or the
monthly payment, or both, shall be paid to the surviving
spouse or the child or children if there is no surviving spouse.
If there is no surviving spouse and no child or children, the
award or the amount of the monthly payment shall be paid by
the department or self-insurer and distributed consistent with
the terms of the decedent's will or, if the decedent dies intestate, consistent with the terms of RCW 11.04.015.
(b) If any worker suffers an injury and dies from it before
he or she receives payment of any monthly installment covering time loss for any period of time before his or her death,
the amount of the monthly payment shall be paid to the surviving spouse or the child or children if there is no surviving
spouse. If there is no surviving spouse and no child or children, the amount of the monthly payment shall be paid by the
department or self-insurer and distributed consistent with the
terms of the decedent's will or, if the decedent dies intestate,
consistent with the terms of RCW 11.04.015.
(c) Any application for compensation under this subsection (2) shall be filed with the department or self-insuring
employer within one year of the date of death. The department or self-insurer may satisfy its responsibilities under this
subsection (2) by sending any payment due in the name of the
decedent and to the last known address of the decedent.
(3)(a) Any worker or beneficiary receiving benefits
under this title who is subsequently confined in, or who subsequently becomes eligible for benefits under this title while
confined in, any institution under conviction and sentence
shall have all payments of the compensation canceled during
the period of confinement. After discharge from the institution, payment of benefits due afterward shall be paid if the
worker or beneficiary would, except for the provisions of this
subsection (3), otherwise be entitled to them.
(b) If any prisoner is injured in the course of his or her
employment while participating in a work or training release
program authorized by chapter 72.65 RCW and is subject to
the provisions of this title, he or she is entitled to payments
under this title, subject to the requirements of chapter 72.65
RCW, unless his or her participation in the program has been
canceled, or unless he or she is returned to a state correctional
institution, as defined in RCW 72.65.010(3), as a result of
revocation of parole or new sentence.
(c) If the confined worker has any beneficiaries during
the confinement period during which benefits are canceled
under (a) or (b) of this subsection, they shall be paid directly
the monthly benefits which would have been paid to the
worker for himself or herself and the worker's beneficiaries
had the worker not been confined.
(4) Any lump sum benefits to which a worker would otherwise be entitled but for the provisions of this section shall
be paid on a monthly basis to his or her beneficiaries. [2003
c 379 § 27; 1999 c 185 § 1; 1996 c 47 § 1; 1995 c 160 § 3;
1987 c 75 § 7; 1983 c 2 § 13. Prior: 1982 c 201 § 8; 1982 c
109 § 10; 1979 ex.s. c 171 § 11; 1977 ex.s. c 350 § 41; 1975
1st ex.s. c 224 § 8; 1974 ex.s. c 30 § 1; prior: 1973 1st ex.s. c
154 § 95; 1972 ex.s. c 43 § 18; 1971 ex.s. c 289 § 43; 1965
ex.s. c 165 § 2; 1961 c 23 § 51.32.040; prior: 1957 c 70 § 29;
(2004 Ed.)
Compensation—Right to and Amount
prior: 1947 c 56 § 1, part; 1927 c 310 § 7, part; 1923 c 136 §
4, part; 1921 c 182 § 6, part; 1919 c 131 § 6, part; 1911 c 74
§ 10, part; Rem. Supp. 1947 § 7684, part.]
Severability—Effective dates—2003 c 379: See notes following
RCW 9.94A.728.
Intent—Purpose—2003 c 379 §§ 13-27: See note following RCW
9.94A.760.
Application—1995 c 160 §§ 2 and 3: See note following RCW
51.32.020.
Savings—Severability—1987 c 75: See RCW 43.20B.900 and
43.20B.901.
Severability—1983 c 2: See note following RCW 18.71.030.
Severability—1979 ex.s. c 171: See note following RCW 74.20.300.
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
Severability—1973 1st ex.s. c 154: See note following RCW 2.12.030.
51.32.045
51.32.045 Direct deposit of benefits. Any worker or
other recipient of benefits under this title may elect to have
any payments due transferred to such person's account in a
financial institution for either: (1) Credit to the recipient's
account in such financial institution; or (2) immediate transfer therefrom to the recipient's account in any other financial
institution. A single warrant may be drawn in favor of such
financial institution, for the total amount due the recipients
involved, and written directions provided to such financial
institution of the amount to be credited to the account of a
recipient or to be transferred to an account in another financial institution for such recipient. The issuance and delivery
by the disbursing officer of a warrant in accordance with the
procedure set forth in this section and proper indorsement
thereof by the financial institution shall have the same legal
effect as payment directly to the recipient.
For the purposes of this section "financial institution"
shall have the meaning given in RCW 41.04.240 as now or
hereafter amended. [1982 c 109 § 11.]
51.32.050
51.32.050 Death benefits. (1) Where death results from
the injury the expenses of burial not to exceed two hundred
percent of the average monthly wage in the state as defined in
RCW 51.08.018 shall be paid.
(2)(a) Where death results from the injury, a surviving
spouse of a deceased worker eligible for benefits under this
title shall receive monthly for life or until remarriage payments according to the following schedule:
(i) If there are no children of the deceased worker, sixty
percent of the wages of the deceased worker but not less than
one hundred eighty-five dollars;
(ii) If there is one child of the deceased worker and in the
legal custody of such spouse, sixty-two percent of the wages
of the deceased worker but not less than two hundred twentytwo dollars;
(iii) If there are two children of the deceased worker and
in the legal custody of such spouse, sixty-four percent of the
wages of the deceased worker but not less than two hundred
fifty-three dollars;
(iv) If there are three children of the deceased worker and
in the legal custody of such spouse, sixty-six percent of the
wages of the deceased worker but not less than two hundred
seventy-six dollars;
(2004 Ed.)
51.32.050
(v) If there are four children of the deceased worker and
in the legal custody of such spouse, sixty-eight percent of the
wages of the deceased worker but not less than two hundred
ninety-nine dollars; or
(vi) If there are five or more children of the deceased
worker and in the legal custody of such spouse, seventy percent of the wages of the deceased worker but not less than
three hundred twenty-two dollars.
(b) Where the surviving spouse does not have legal custody of any child or children of the deceased worker or where
after the death of the worker legal custody of such child or
children passes from such surviving spouse to another, any
payment on account of such child or children not in the legal
custody of the surviving spouse shall be made to the person
or persons having legal custody of such child or children. The
amount of such payments shall be five percent of the monthly
benefits payable as a result of the worker's death for each
such child but such payments shall not exceed twenty-five
percent. Such payments on account of such child or children
shall be subtracted from the amount to which such surviving
spouse would have been entitled had such surviving spouse
had legal custody of all of the children and the surviving
spouse shall receive the remainder after such payments on
account of such child or children have been subtracted. Such
payments on account of a child or children not in the legal
custody of such surviving spouse shall be apportioned
equally among such children.
(c) Payments to the surviving spouse of the deceased
worker shall cease at the end of the month in which remarriage occurs: PROVIDED, That a monthly payment shall be
made to the child or children of the deceased worker from the
month following such remarriage in a sum equal to five percent of the wages of the deceased worker for one child and a
sum equal to five percent for each additional child up to a
maximum of five such children. Payments to such child or
children shall be apportioned equally among such children.
Such sum shall be in place of any payments theretofore made
for the benefit of or on account of any such child or children.
If the surviving spouse does not have legal custody of any
child or children of the deceased worker, or if after the death
of the worker, legal custody of such child or children passes
from such surviving spouse to another, any payment on
account of such child or children not in the legal custody of
the surviving spouse shall be made to the person or persons
having legal custody of such child or children.
(d) In no event shall the monthly payments provided in
subsection (2) of this section exceed the applicable percentage of the average monthly wage in the state as computed
under RCW 51.08.018 as follows:
AFTER
PERCENTAGE
June 30, 1993
June 30, 1994
June 30, 1995
June 30, 1996
105%
110%
115%
120%
(e) In addition to the monthly payments provided for in
subsection (2)(a) through (c) of this section, a surviving
spouse or child or children of such worker if there is no surviving spouse, or dependent parent or parents, if there is no
surviving spouse or child or children of any such deceased
[Title 51 RCW—page 39]
51.32.050
Title 51 RCW: Industrial Insurance
worker shall be forthwith paid a sum equal to one hundred
percent of the average monthly wage in the state as defined in
RCW 51.08.018, any such children, or parents to share and
share alike in said sum.
(f) Upon remarriage of a surviving spouse the monthly
payments for the child or children shall continue as provided
in this section, but the monthly payments to such surviving
spouse shall cease at the end of the month during which
remarriage occurs. However, after September 8, 1975, an
otherwise eligible surviving spouse of a worker who died at
any time prior to or after September 8, 1975, shall have an
option of:
(i) Receiving, once and for all, a lump sum of twentyfour times the monthly compensation rate in effect on the
date of remarriage allocable to the spouse for himself or herself pursuant to subsection (2)(a)(i) of this section and subject
to any modifications specified under subsection (2)(d) of this
section and RCW 51.32.075(3) or fifty percent of the then
remaining annuity value of his or her pension, whichever is
the lesser: PROVIDED, That if the injury occurred prior to
July 28, 1991, the remarriage benefit lump sum available
shall be as provided in the remarriage benefit schedules then
in effect; or
(ii) If a surviving spouse does not choose the option
specified in subsection (2)(f)(i) of this section to accept the
lump sum payment, the remarriage of the surviving spouse of
a worker shall not bar him or her from claiming the lump sum
payment authorized in subsection (2)(f)(i) of this section during the life of the remarriage, or shall not prevent subsequent
monthly payments to him or to her if the remarriage has been
terminated by death or has been dissolved or annulled by
valid court decree provided he or she has not previously
accepted the lump sum payment.
(g) If the surviving spouse during the remarriage should
die without having previously received the lump sum payment provided in subsection (2)(f)(i) of this section, his or her
estate shall be entitled to receive the sum specified under subsection (2)(f)(i) of this section or fifty percent of the then
remaining annuity value of his or her pension whichever is
the lesser.
(h) The effective date of resumption of payments under
subsection (2)(f)(ii) of this section to a surviving spouse
based upon termination of a remarriage by death, annulment,
or dissolution shall be the date of the death or the date the
judicial decree of annulment or dissolution becomes final and
when application for the payments has been received.
(i) If it should be necessary to increase the reserves in the
reserve fund or to create a new pension reserve fund as a
result of the amendments in chapter 45, Laws of 1975-'76 2nd
ex. sess., the amount of such increase in pension reserve in
any such case shall be transferred to the reserve fund from the
supplemental pension fund.
(3) If there is a child or children and no surviving spouse
of the deceased worker or the surviving spouse is not eligible
for benefits under this title, a sum equal to thirty-five percent
of the wages of the deceased worker shall be paid monthly for
one child and a sum equivalent to fifteen percent of such
wage shall be paid monthly for each additional child, the total
of such sum to be divided among such children, share and
share alike: PROVIDED, That benefits under this subsection
or subsection (4) of this section shall not exceed the lesser of
[Title 51 RCW—page 40]
sixty-five percent of the wages of the deceased worker at the
time of his or her death or the applicable percentage of the
average monthly wage in the state as defined in RCW
51.08.018, as follows:
AFTER
PERCENTAGE
June 30, 1993
June 30, 1994
June 30, 1995
June 30, 1996
105%
110%
115%
120%
(4) In the event a surviving spouse receiving monthly
payments dies, the child or children of the deceased worker
shall receive the same payment as provided in subsection (3)
of this section.
(5) If the worker leaves no surviving spouse or child, but
leaves a dependent or dependents, a monthly payment shall
be made to each dependent equal to fifty percent of the average monthly support actually received by such dependent
from the worker during the twelve months next preceding the
occurrence of the injury, but the total payment to all dependents in any case shall not exceed the lesser of sixty-five percent of the wages of the deceased worker at the time of his or
her death or the applicable percentage of the average monthly
wage in the state as defined in RCW 51.08.018 as follows:
AFTER
PERCENTAGE
June 30, 1993
June 30, 1994
June 30, 1995
June 30, 1996
105%
110%
115%
120%
If any dependent is under the age of eighteen years at the time
of the occurrence of the injury, the payment to such dependent shall cease when such dependent reaches the age of
eighteen years except such payments shall continue until the
dependent reaches age twenty-three while permanently
enrolled at a full time course in an accredited school. The
payment to any dependent shall cease if and when, under the
same circumstances, the necessity creating the dependency
would have ceased if the injury had not happened.
(6) For claims filed prior to July 1, 1986, if the injured
worker dies during the period of permanent total disability,
whatever the cause of death, leaving a surviving spouse, or
child, or children, the surviving spouse or child or children
shall receive benefits as if death resulted from the injury as
provided in subsections (2) through (4) of this section. Upon
remarriage or death of such surviving spouse, the payments
to such child or children shall be made as provided in subsection (2) of this section when the surviving spouse of a
deceased worker remarries.
(7) For claims filed on or after July 1, 1986, every
worker who becomes eligible for permanent total disability
benefits shall elect an option as provided in RCW 51.32.067.
[1995 c 199 § 6; 1993 c 521 § 1; 1991 c 88 § 2; 1988 c 161 §
2; 1986 c 58 § 3; 1982 c 63 § 18; 1977 ex.s. c 350 § 42;
1975-'76 2nd ex.s. c 45 § 2; 1975 1st ex.s. c 179 § 1; 1973 1st
ex.s. c 154 § 96; 1972 ex.s. c 43 § 19; 1971 ex.s. c 289 § 7;
1965 ex.s. c 122 § 1; 1961 c 274 § 1; 1961 c 23 § 51.32.050.
Prior: 1957 c 70 § 30; 1951 c 115 § 1; prior: 1949 c 219 § 1,
part; 1947 c 246 § 1, part; 1929 c 132 § 2, part; 1927 c 310 §
4, part; 1923 c 136 § 2, part; 1919 c 131 § 4, part; 1917 c 28
(2004 Ed.)
Compensation—Right to and Amount
§ 1, part; 1913 c 148 § 1, part; 1911 c 74 § 5, part; Rem. Supp.
1949 § 7679, part.]
Severability—1995 c 199: See note following RCW 51.12.120.
Effective date—1993 c 521: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1,
1993." [1993 c 521 § 4.]
Benefit increases—Application to certain retrospective rating
agreements—1988 c 161: "The increases in benefits in RCW 51.32.050,
51.32.060, 51.32.090, and 51.32.180, contained in chapter 161, Laws of
1988 do not affect a retrospective rating agreement entered into by any
employer with the department before July 1, 1988." [1988 c 161 § 15.]
Effective dates—1988 c 161 §§ 1, 2, 3, 4, and 6: "Section 4 of this act
shall take effect on June 30, 1989. Sections 1, 2, 3, and 6 of this act shall take
effect on July 1, 1988." [1988 c 161 § 17.]
Effective date—1986 c 58 §§ 2, 3: See note following RCW 51.32.080.
Effective dates—Implementation—1982 c 63: See note following
RCW 51.32.095.
Legislative intent—1975 1st ex.s. c 179: "The legislative intent of
chapter 179, Laws of 1975 1st ex. sess. (2nd SSB No. 2241) was in part to
offer surviving spouses of eligible workmen two options upon remarriage;
such options to be available to any otherwise eligible surviving spouse
regardless of the date of death of the injured workman. Accordingly this
1976 amendatory act is required to clarify that intent." [1975-'76 2nd ex.s. c
45 § 1.]
Severability—1973 1st ex.s. c 154: See note following RCW 2.12.030.
51.32.055
51.32.055 Determination of permanent disabilities—
Closure of claims by self-insurers. (Expires June 30,
2007.) (1) One purpose of this title is to restore the injured
worker as nearly as possible to the condition of self-support
as an able-bodied worker. Benefits for permanent disability
shall be determined under the director's supervision, except
as otherwise authorized in subsection (9) of this section, only
after the injured worker's condition becomes fixed.
(2) All determinations of permanent disabilities shall be
made by the department, except as otherwise authorized in
subsection (9) of this section. Either the worker, employer,
or self-insurer may make a request or the inquiry may be initiated by the director or, as authorized in subsection (9) of this
section, by the self-insurer on the director or the self-insurer's
own motion. Determinations shall be required in every
instance where permanent disability is likely to be present.
All medical reports and other pertinent information in the
possession of or under the control of the employer or, if the
self-insurer has made a request to the department, in the possession of or under the control of the self-insurer shall be forwarded to the director with the request.
(3) A request for determination of permanent disability
shall be examined by the department or, if authorized in subsection (9) of this section, the self-insurer, and the department shall issue an order in accordance with RCW 51.52.050
or, in the case of a self-insured employer, the self-insurer
may: (a) Enter a written order, communicated to the worker
and the department self-insurance section in accordance with
subsection (9) of this section, or (b) request the department to
issue an order in accordance with RCW 51.52.050.
(4) The department or, in cases authorized in subsection
(9) of this section, the self-insurer may require that the
worker present himself or herself for a special medical examination by a physician or physicians selected by the department, and the department or, in cases authorized in subsection (9) of this section, the self-insurer may require that the
(2004 Ed.)
51.32.055
worker present himself or herself for a personal interview.
The costs of the examination or interview, including payment
of any reasonable travel expenses, shall be paid by the department or self-insurer, as the case may be.
(5) The director may establish a medical bureau within
the department to perform medical examinations under this
section. Physicians hired or retained for this purpose shall be
grounded in industrial medicine and in the assessment of
industrial physical impairment. Self-insurers shall bear a
proportionate share of the cost of the medical bureau in a
manner to be determined by the department.
(6) Where a dispute arises from the handling of any
claim before the condition of the injured worker becomes
fixed, the worker, employer, or self-insurer may request the
department to resolve the dispute or the director may initiate
an inquiry on his or her own motion. In these cases, the
department shall proceed as provided in this section and an
order shall issue in accordance with RCW 51.52.050.
(7)(a) If a claim (i) is accepted by a self-insurer after
June 30, 1986, and before August 1, 1997, (ii) involves only
medical treatment and the payment of temporary disability
compensation under RCW 51.32.090 or only the payment of
temporary disability compensation under RCW 51.32.090,
(iii) at the time medical treatment is concluded does not
involve permanent disability, (iv) is one with respect to
which the department has not intervened under subsection (6)
of this section, and (v) the injured worker has returned to
work with the self-insured employer of record, whether at the
worker's previous job or at a job that has comparable wages
and benefits, the claim may be closed by the self-insurer, subject to reporting of claims to the department in a manner prescribed by department rules adopted under chapter 34.05
RCW.
(b) All determinations of permanent disability for claims
accepted under this subsection (7) by self-insurers shall be
made by the self-insured section of the department under subsections (1) through (4) of this section.
(c) Upon closure of a claim under (a) of this subsection,
the self-insurer shall enter a written order, communicated to
the worker and the department self-insurance section, which
contains the following statement clearly set forth in bold face
type: "This order constitutes notification that your claim is
being closed with medical benefits and temporary disability
compensation only as provided, and with the condition you
have returned to work with the self-insured employer. If for
any reason you disagree with the conditions or duration of
your return to work or the medical benefits or the temporary
disability compensation that has been provided, you must
protest in writing to the department of labor and industries,
self-insurance section, within sixty days of the date you
received this order."
(8)(a) If a claim (i) is accepted by a self-insurer after
June 30, 1990, and before August 1, 1997, (ii) involves only
medical treatment, (iii) does not involve payment of temporary disability compensation under RCW 51.32.090, and (iv)
at the time medical treatment is concluded does not involve
permanent disability, the claim may be closed by the selfinsurer, subject to reporting of claims to the department in a
manner prescribed by department rules adopted under chapter 34.05 RCW. Upon closure of a claim, the self-insurer
shall enter a written order, communicated to the worker,
[Title 51 RCW—page 41]
51.32.055
Title 51 RCW: Industrial Insurance
which contains the following statement clearly set forth in
bold-face type: "This order constitutes notification that your
claim is being closed with medical benefits only, as provided.
If for any reason you disagree with this closure, you must
protest in writing to the Department of Labor and Industries,
Olympia, within 60 days of the date you received this order.
The department will then review your claim and enter a further determinative order."
(b) All determinations of permanent disability for claims
accepted under this subsection (8) by self-insurers shall be
made by the self-insured section of the department under subsections (1) through (4) of this section.
(9)(a) If a claim: (i) Is accepted by a self-insurer after
July 31, 1997; (ii)(A) involves only medical treatment, or
medical treatment and the payment of temporary disability
compensation under RCW 51.32.090, and a determination of
permanent partial disability, if applicable, has been made by
the self-insurer as authorized in this subsection; or (B)
involves only the payment of temporary disability compensation under RCW 51.32.090 and a determination of permanent
partial disability, if applicable, has been made by the selfinsurer as authorized in this subsection; (iii) is one with
respect to which the department has not intervened under
subsection (6) of this section; and (iv) concerns an injured
worker who has returned to work with the self-insured
employer of record, whether at the worker's previous job or at
a job that has comparable wages and benefits, the claim may
be closed by the self-insurer, subject to reporting of claims to
the department in a manner prescribed by department rules
adopted under chapter 34.05 RCW.
(b) If a physician or licensed advanced registered nurse
practitioner submits a report to the self-insurer that concludes
that the worker's condition is fixed and stable and supports
payment of a permanent partial disability award, and if within
fourteen days from the date the self-insurer mailed the report
to the attending or treating physician or licensed advanced
registered nurse practitioner, the worker's attending or treating physician or licensed advanced registered nurse practitioner disagrees in writing that the worker's condition is fixed
and stable, the self-insurer must get a supplemental medical
opinion from a provider on the department's approved examiner's list before closing the claim. In the alternative, the selfinsurer may forward the claim to the department, which must
review the claim and enter a final order as provided for in
RCW 51.52.050.
(c) Upon closure of a claim under this subsection (9), the
self-insurer shall enter a written order, communicated to the
worker and the department self-insurance section, which contains the following statement clearly set forth in bold-face
type: "This order constitutes notification that your claim is
being closed with such medical benefits and temporary disability compensation as provided to date and with such award
for permanent partial disability, if any, as set forth below, and
with the condition that you have returned to work with the
self-insured employer. If for any reason you disagree with
the conditions or duration of your return to work or the medical benefits, temporary disability compensation provided, or
permanent partial disability that has been awarded, you must
protest in writing to the Department of Labor and Industries,
Self-Insurance Section, within sixty days of the date you
[Title 51 RCW—page 42]
received this order. If you do not protest this order to the
department, this order will become final."
(d) All determinations of permanent partial disability for
claims accepted by self-insurers under this subsection (9)
may be made by the self-insurer or the self-insurer may
request a determination by the self-insured section of the
department. All determinations shall be made under subsections (1) through (4) of this section.
(10) If the department receives a protest of an order
issued by a self-insurer under subsections (7) through (9) of
this section, the self-insurer's closure order must be held in
abeyance. The department shall review the claim closure
action and enter a further determinative order as provided for
in RCW 51.52.050. If no protest is timely filed, the closing
order issued by the self-insurer shall become final and shall
have the same force and effect as a department order that has
become final under RCW 51.52.050.
(11) If within two years of claim closure under subsections (7) through (9) of this section, the department determines that the self-insurer has made payment of benefits
because of clerical error, mistake of identity, or innocent misrepresentation or the department discovers a violation of the
conditions of claim closure, the department may require the
self-insurer to correct the benefits paid or payable. This subsection (11) does not limit in any way the application of
RCW 51.32.240.
(12) For the purposes of this section, "comparable wages
and benefits" means wages and benefits that are at least
ninety-five percent of the wages and benefits received by the
worker at the time of injury. [2004 c 65 § 8; 1997 c 416 § 1;
1994 c 97 § 1; 1988 c 161 § 13; 1986 c 55 § 1; 1981 c 326 §
1; 1977 ex.s. c 350 § 43; 1971 ex.s. c 289 § 46.]
Report to legislature—Effective date—Expiration date—Severability—2004 c 65: See notes following RCW 51.04.030.
Report to the legislature—1997 c 416: "The department of labor and
industries shall review the permanent partial disability claims closure activity by self-insured employers authorized under RCW 51.32.055(9) through
at least June 30, 1999. The department must also review the claims closure
activity by the self-insured section of the department for the same period.
The review of these activities must include the number and types of claims
closed, protested, reconsidered, and appealed, and the results of such activities, including the results of injured worker satisfaction surveys conducted
by the department. The department must report on its review to the appropriate committees of the legislature no later than January 1, 2000." [1997 c
416 § 2.]
Effective date—Applicability—1986 c 55 § 1: "Section 1 of this act
shall take effect July 1, 1986, and shall apply to claims accepted after June
30, 1986." [1986 c 55 § 4.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.32.055
51.32.055 Determination of permanent disabilities—
Closure of claims by self-insurers. (Effective June 30,
2007.) (1) One purpose of this title is to restore the injured
worker as nearly as possible to the condition of self-support
as an able-bodied worker. Benefits for permanent disability
shall be determined under the director's supervision, except
as otherwise authorized in subsection (9) of this section, only
after the injured worker's condition becomes fixed.
(2) All determinations of permanent disabilities shall be
made by the department, except as otherwise authorized in
subsection (9) of this section. Either the worker, employer, or
self-insurer may make a request or the inquiry may be initi(2004 Ed.)
Compensation—Right to and Amount
ated by the director or, as authorized in subsection (9) of this
section, by the self-insurer on the director or the self-insurer's
own motion. Determinations shall be required in every
instance where permanent disability is likely to be present.
All medical reports and other pertinent information in the
possession of or under the control of the employer or, if the
self-insurer has made a request to the department, in the possession of or under the control of the self-insurer shall be forwarded to the director with the request.
(3) A request for determination of permanent disability
shall be examined by the department or, if authorized in subsection (9) of this section, the self-insurer, and the department shall issue an order in accordance with RCW 51.52.050
or, in the case of a self-insured employer, the self-insurer
may: (a) Enter a written order, communicated to the worker
and the department self-insurance section in accordance with
subsection (9) of this section, or (b) request the department to
issue an order in accordance with RCW 51.52.050.
(4) The department or, in cases authorized in subsection
(9) of this section, the self-insurer may require that the
worker present himself or herself for a special medical examination by a physician or physicians selected by the department, and the department or, in cases authorized in subsection (9) of this section, the self-insurer may require that the
worker present himself or herself for a personal interview.
The costs of the examination or interview, including payment
of any reasonable travel expenses, shall be paid by the department or self-insurer, as the case may be.
(5) The director may establish a medical bureau within
the department to perform medical examinations under this
section. Physicians hired or retained for this purpose shall be
grounded in industrial medicine and in the assessment of
industrial physical impairment. Self-insurers shall bear a proportionate share of the cost of the medical bureau in a manner
to be determined by the department.
(6) Where a dispute arises from the handling of any
claim before the condition of the injured worker becomes
fixed, the worker, employer, or self-insurer may request the
department to resolve the dispute or the director may initiate
an inquiry on his or her own motion. In these cases, the
department shall proceed as provided in this section and an
order shall issue in accordance with RCW 51.52.050.
(7)(a) If a claim (i) is accepted by a self-insurer after
June 30, 1986, and before August 1, 1997, (ii) involves only
medical treatment and the payment of temporary disability
compensation under RCW 51.32.090 or only the payment of
temporary disability compensation under RCW 51.32.090,
(iii) at the time medical treatment is concluded does not
involve permanent disability, (iv) is one with respect to
which the department has not intervened under subsection (6)
of this section, and (v) the injured worker has returned to
work with the self-insured employer of record, whether at the
worker's previous job or at a job that has comparable wages
and benefits, the claim may be closed by the self-insurer, subject to reporting of claims to the department in a manner prescribed by department rules adopted under chapter 34.05
RCW.
(b) All determinations of permanent disability for claims
accepted under this subsection (7) by self-insurers shall be
made by the self-insured section of the department under subsections (1) through (4) of this section.
(2004 Ed.)
51.32.055
(c) Upon closure of a claim under (a) of this subsection,
the self-insurer shall enter a written order, communicated to
the worker and the department self-insurance section, which
contains the following statement clearly set forth in bold face
type: "This order constitutes notification that your claim is
being closed with medical benefits and temporary disability
compensation only as provided, and with the condition you
have returned to work with the self-insured employer. If for
any reason you disagree with the conditions or duration of
your return to work or the medical benefits or the temporary
disability compensation that has been provided, you must
protest in writing to the department of labor and industries,
self-insurance section, within sixty days of the date you
received this order."
(8)(a) If a claim (i) is accepted by a self-insurer after
June 30, 1990, and before August 1, 1997, (ii) involves only
medical treatment, (iii) does not involve payment of temporary disability compensation under RCW 51.32.090, and (iv)
at the time medical treatment is concluded does not involve
permanent disability, the claim may be closed by the selfinsurer, subject to reporting of claims to the department in a
manner prescribed by department rules adopted under chapter 34.05 RCW. Upon closure of a claim, the self-insurer
shall enter a written order, communicated to the worker,
which contains the following statement clearly set forth in
bold-face type: "This order constitutes notification that your
claim is being closed with medical benefits only, as provided.
If for any reason you disagree with this closure, you must
protest in writing to the Department of Labor and Industries,
Olympia, within 60 days of the date you received this order.
The department will then review your claim and enter a further determinative order."
(b) All determinations of permanent disability for claims
accepted under this subsection (8) by self-insurers shall be
made by the self-insured section of the department under subsections (1) through (4) of this section.
(9)(a) If a claim: (i) Is accepted by a self-insurer after
July 31, 1997; (ii)(A) involves only medical treatment, or
medical treatment and the payment of temporary disability
compensation under RCW 51.32.090, and a determination of
permanent partial disability, if applicable, has been made by
the self-insurer as authorized in this subsection; or (B)
involves only the payment of temporary disability compensation under RCW 51.32.090 and a determination of permanent
partial disability, if applicable, has been made by the selfinsurer as authorized in this subsection; (iii) is one with
respect to which the department has not intervened under
subsection (6) of this section; and (iv) concerns an injured
worker who has returned to work with the self-insured
employer of record, whether at the worker's previous job or at
a job that has comparable wages and benefits, the claim may
be closed by the self-insurer, subject to reporting of claims to
the department in a manner prescribed by department rules
adopted under chapter 34.05 RCW.
(b) If a physician submits a report to the self-insurer that
concludes that the worker's condition is fixed and stable and
supports payment of a permanent partial disability award, and
if within fourteen days from the date the self-insurer mailed
the report to the attending or treating physician, the worker's
attending or treating physician disagrees in writing that the
worker's condition is fixed and stable, the self-insurer must
[Title 51 RCW—page 43]
51.32.060
Title 51 RCW: Industrial Insurance
get a supplemental medical opinion from a provider on the
department's approved examiner's list before closing the
claim. In the alternative, the self-insurer may forward the
claim to the department, which must review the claim and
enter a final order as provided for in RCW 51.52.050.
(c) Upon closure of a claim under this subsection (9), the
self-insurer shall enter a written order, communicated to the
worker and the department self-insurance section, which contains the following statement clearly set forth in bold-face
type: "This order constitutes notification that your claim is
being closed with such medical benefits and temporary disability compensation as provided to date and with such award
for permanent partial disability, if any, as set forth below, and
with the condition that you have returned to work with the
self-insured employer. If for any reason you disagree with the
conditions or duration of your return to work or the medical
benefits, temporary disability compensation provided, or permanent partial disability that has been awarded, you must
protest in writing to the Department of Labor and Industries,
Self-Insurance Section, within sixty days of the date you
received this order. If you do not protest this order to the
department, this order will become final."
(d) All determinations of permanent partial disability for
claims accepted by self-insurers under this subsection (9)
may be made by the self-insurer or the self-insurer may
request a determination by the self-insured section of the
department. All determinations shall be made under subsections (1) through (4) of this section.
(10) If the department receives a protest of an order
issued by a self-insurer under subsections (7) through (9) of
this section, the self-insurer's closure order must be held in
abeyance. The department shall review the claim closure
action and enter a further determinative order as provided for
in RCW 51.52.050. If no protest is timely filed, the closing
order issued by the self-insurer shall become final and shall
have the same force and effect as a department order that has
become final under RCW 51.52.050.
(11) If within two years of claim closure under subsections (7) through (9) of this section, the department determines that the self-insurer has made payment of benefits
because of clerical error, mistake of identity, or innocent misrepresentation or the department discovers a violation of the
conditions of claim closure, the department may require the
self-insurer to correct the benefits paid or payable. This subsection (11) does not limit in any way the application of
RCW 51.32.240.
(12) For the purposes of this section, "comparable wages
and benefits" means wages and benefits that are at least
ninety-five percent of the wages and benefits received by the
worker at the time of injury. [1997 c 416 § 1; 1994 c 97 § 1;
1988 c 161 § 13; 1986 c 55 § 1; 1981 c 326 § 1; 1977 ex.s. c
350 § 43; 1971 ex.s. c 289 § 46.]
Report to the legislature—1997 c 416: "The department of labor and
industries shall review the permanent partial disability claims closure activity by self-insured employers authorized under RCW 51.32.055(9) through
at least June 30, 1999. The department must also review the claims closure
activity by the self-insured section of the department for the same period.
The review of these activities must include the number and types of claims
closed, protested, reconsidered, and appealed, and the results of such activities, including the results of injured worker satisfaction surveys conducted
by the department. The department must report on its review to the appropriate committees of the legislature no later than January 1, 2000." [1997 c 416
§ 2.]
[Title 51 RCW—page 44]
Effective date—Applicability—1986 c 55 § 1: "Section 1 of this act
shall take effect July 1, 1986, and shall apply to claims accepted after June
30, 1986." [1986 c 55 § 4.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.32.060
51.32.060 Permanent total disability compensation—
Personal attendant. (1) When the supervisor of industrial
insurance shall determine that permanent total disability
results from the injury, the worker shall receive monthly during the period of such disability:
(a) If married at the time of injury, sixty-five percent of
his or her wages but not less than two hundred fifteen dollars
per month.
(b) If married with one child at the time of injury,
sixty-seven percent of his or her wages but not less than two
hundred fifty-two dollars per month.
(c) If married with two children at the time of injury,
sixty-nine percent of his or her wages but not less than two
hundred eighty-three dollars.
(d) If married with three children at the time of injury,
seventy-one percent of his or her wages but not less than
three hundred six dollars per month.
(e) If married with four children at the time of injury,
seventy-three percent of his or her wages but not less than
three hundred twenty-nine dollars per month.
(f) If married with five or more children at the time of
injury, seventy-five percent of his or her wages but not less
than three hundred fifty-two dollars per month.
(g) If unmarried at the time of the injury, sixty percent of
his or her wages but not less than one hundred eighty-five
dollars per month.
(h) If unmarried with one child at the time of injury,
sixty-two percent of his or her wages but not less than two
hundred twenty-two dollars per month.
(i) If unmarried with two children at the time of injury,
sixty-four percent of his or her wages but not less than two
hundred fifty-three dollars per month.
(j) If unmarried with three children at the time of injury,
sixty-six percent of his or her wages but not less than two
hundred seventy-six dollars per month.
(k) If unmarried with four children at the time of injury,
sixty-eight percent of his or her wages but not less than two
hundred ninety-nine dollars per month.
(l) If unmarried with five or more children at the time of
injury, seventy percent of his or her wages but not less than
three hundred twenty-two dollars per month.
(2) For any period of time where both husband and wife
are entitled to compensation as temporarily or totally disabled workers, only that spouse having the higher wages of
the two shall be entitled to claim their child or children for
compensation purposes.
(3) In case of permanent total disability, if the character
of the injury is such as to render the worker so physically
helpless as to require the hiring of the services of an attendant, the department shall make monthly payments to such
attendant for such services as long as such requirement continues, but such payments shall not obtain or be operative
while the worker is receiving care under or pursuant to the
provisions of chapter 51.36 RCW and RCW 51.04.105.
(2004 Ed.)
Compensation—Right to and Amount
(4) Should any further accident result in the permanent
total disability of an injured worker, he or she shall receive
the pension to which he or she would be entitled, notwithstanding the payment of a lump sum for his or her prior
injury.
(5) In no event shall the monthly payments provided in
this section exceed the applicable percentage of the average
monthly wage in the state as computed under the provisions
of RCW 51.08.018 as follows:
AFTER
PERCENTAGE
June 30, 1993
June 30, 1994
June 30, 1995
June 30, 1996
105%
110%
115%
120%
The limitations under this subsection shall not apply to
the payments provided for in subsection (3) of this section.
(6) In the case of new or reopened claims, if the supervisor of industrial insurance determines that, at the time of filing or reopening, the worker is voluntarily retired and is no
longer attached to the work force, benefits shall not be paid
under this section.
(7) The benefits provided by this section are subject to
modification under RCW 51.32.067. [1993 c 521 § 2; 1988 c
161 § 1. Prior: 1986 c 59 § 1; 1986 c 58 § 5; 1983 c 3 § 159;
1977 ex.s. c 350 § 44; 1975 1st ex.s. c 224 § 9; 1973 c 147 §
1; 1972 ex.s. c 43 § 20; 1971 ex.s. c 289 § 8; 1965 ex.s. c 122
§ 2; 1961 c 274 § 2; 1961 c 23 § 51.32.060; prior: 1957 c 70
§ 31; 1951 c 115 § 2; prior: 1949 c 219 § 1, part; 1947 c 246
§ 1, part; 1929 c 132 § 2, part; 1927 c 310 § 4, part; 1923 c
136 § 2, part; 1919 c 131 § 4, part; 1917 c 28 § 1, part; 1913
c 148 § 1, part; 1911 c 74 § 5, part; Rem. Supp. 1949 § 7679,
part.]
Effective date—1993 c 521: See note following RCW 51.32.050.
Benefit increases—Application to certain retrospective rating
agreements—Effective dates—1988 c 161: See notes following RCW
51.32.050.
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
51.32.067
51.32.067 Permanent total disability—Death benefit
options—Election. (1) After a worker elects one of the
options in (a), (b), or (c) of this subsection, that option shall
apply only if the worker dies during a period of permanent
total disability from a cause unrelated to the injury, leaving a
surviving spouse, child, children, or other dependent. If, after
making an election under this subsection, a worker dies from
a cause related to the injury during a period of permanent
total disability, his or her beneficiaries shall receive benefits
under RCW 51.32.050 (2) through (5).
(a) Option I. An injured worker selecting this option
shall receive the benefits provided by RCW 51.32.060, with
no benefits being paid to the worker's surviving spouse, children, or others.
(b) Option II. An injured worker selecting this option
shall receive an actuarially reduced benefit which upon death
shall be continued throughout the life of and paid to the surviving spouse, child, or other dependent as the worker has
nominated by written designation duly executed and filed
with the department.
(2004 Ed.)
51.32.072
(c) Option III. An injured worker selecting this option
shall receive an actuarially reduced benefit and, upon death,
one-half of the reduced benefit shall be continued throughout
the life of and paid to the surviving spouse, child, or other
dependent as the worker has nominated by written designation duly executed and filed with the department.
(2) The worker shall make the election in writing and the
worker's spouse, if any, shall consent in writing as a prerequisite to the election of Option I.
(3) The department shall adopt such rules as may be necessary to implement this section. [1986 c 58 § 4.]
51.32.072
51.32.072 Additional payments for prior pensioners—Children—Remarriage—Attendant. Notwithstanding any other provision of law, every surviving spouse and
every permanently totally disabled worker or temporarily
totally disabled worker, if such worker was unmarried at the
time of the worker's injury or was then married but the marriage was later terminated by judicial action, receiving a pension or compensation for temporary total disability under this
title pursuant to compensation schedules in effect prior to
July 1, 1971, shall after July 1, 1975, be paid fifty percent of
the average monthly wage in the state as computed under
RCW 51.08.018 per month and an amount equal to five percent of such average monthly wage per month to such totally
disabled worker if married at the time of the worker's injury
and the marriage was not later terminated by judicial action,
and an additional two percent of such average monthly wage
for each child of such totally disabled worker at the time of
injury in the legal custody of such totally disabled worker or
such surviving spouse up to a maximum of five such children. The monthly payments such surviving spouse or totally
disabled worker are receiving pursuant to compensation
schedules in effect prior to July 1, 1971 shall be deducted
from the monthly payments above specified.
Where such a surviving spouse has remarried, or where
any such child of such worker, whether living or deceased, is
not in the legal custody of such worker or such surviving
spouse there shall be paid for the benefit of and on account of
each such child a sum equal to two percent of such average
monthly wage up to a maximum of five such children in addition to any payments theretofore paid under compensation
schedules in effect prior to July 1, 1971 for the benefit of and
on account of each such child. In the case of any child or children of a deceased worker not leaving a surviving spouse or
where the surviving spouse has later died, there shall be paid
for the benefit of and on account of each such child a sum
equal to two percent of such average monthly wage up to a
maximum of five such children in addition to any payments
theretofore paid under such schedules for the benefit of and
on account of each such child.
If the character of the injury or occupational disease is
such as to render the worker so physically helpless as to
require the hiring of the services of an attendant, the department shall make monthly payments to such attendant for such
services as long as such requirement continues but such payments shall not obtain or be operative while the worker is
receiving care under or pursuant to the provisions of this title
except for care granted at the discretion of the supervisor pursuant to RCW 51.36.010: PROVIDED, That such payments
[Title 51 RCW—page 45]
51.32.073
Title 51 RCW: Industrial Insurance
shall not be considered compensation nor shall they be subject to any limitation upon total compensation payments.
No part of such additional payments shall be payable
from the accident fund.
The director shall pay monthly from the supplemental
pension fund such an amount as will, when added to the compensation theretofore paid under compensation schedules in
effect prior to July 1, 1971, equal the amounts hereinabove
specified.
In cases where money has been or shall be advanced to
any such person from the pension reserve, the additional
amount to be paid under this section shall be reduced by the
amount of monthly pension which was or is predicated upon
such advanced portion of the pension reserve. [1987 c 185 §
34; 1975 1st ex.s. c 224 § 12.]
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
51.32.073
51.32.073 Additional payments for prior pensioners—Premium liability of worker and employer for additional payments. (1) Except as provided in subsection (2) of
this section, each employer shall retain from the earnings of
each worker that amount as shall be fixed from time to time
by the director, the basis for measuring said amount to be
determined by the director. The money so retained shall be
matched in an equal amount by each employer, and all such
moneys shall be remitted to the department in such manner
and at such intervals as the department directs and shall be
placed in the supplemental pension fund: PROVIDED, That
the state apprenticeship council shall pay the entire amount
into the supplemental pension fund for registered apprentices
or trainees during their participation in supplemental and
related instruction classes. The moneys so collected shall be
used exclusively for the additional payments from the supplemental pension fund prescribed in this title and for the
amount of any increase payable under the provisions of RCW
51.32.075, as now or hereafter amended, and shall be no
more than necessary to make such payments on a current
basis. The department may require a self-insurer to make any
additional payments which are payable from the supplemental pension fund and thereafter such self-insurer shall be
reimbursed therefrom.
(2) None of the amount assessed for the supplemental
pension fund under RCW 51.16.210 may be retained from
the earnings of workers covered under RCW 51.16.210.
[1989 c 385 § 4; 1980 c 14 § 9. Prior: 1977 ex.s. c 350 § 45;
1977 ex.s. c 323 § 15; 1977 ex.s. c 202 § 1; 1975-'76 2nd ex.s.
c 19 § 1; prior: 1975 1st ex.s. c 286 § 1; 1975 1st ex.s. c 224
§ 10; 1973 c 110 § 3; 1972 ex.s. c 43 § 24; 1971 ex.s. c 289 §
17.]
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
51.32.075
51.32.075 Adjustments in compensation or death
benefits. The compensation or death benefits payable pursuant to the provisions of this chapter for temporary total dis[Title 51 RCW—page 46]
ability, permanent total disability, or death arising out of injuries or occupational diseases shall be adjusted as follows:
(1) On July 1, 1982, there shall be an adjustment for
those whose right to compensation was established on or
after July 1, 1971, and before July 1, 1982. The adjustment
shall be determined by multiplying the amount of compensation to which they are entitled by a fraction, the denominator
of which shall be the average monthly wage in the state under
RCW 51.08.018 for the fiscal year in which such person's
right to compensation was established, and the numerator of
which shall be the average monthly wage in the state under
RCW 51.08.018 on July 1, 1982.
(2) In addition to the adjustment established by subsection (1) of this section, there shall be another adjustment on
July 1, 1983, for those whose right to compensation was
established on or after July 1, 1971, and before July 1983,
which shall be determined by multiplying the amount of
compensation to which they are entitled by a fraction, the
denominator of which shall be the average monthly wage in
the state under RCW 51.08.018 for the fiscal year in which
such person's right to compensation was established, and the
numerator of which shall be the average monthly wage in the
state under RCW 51.08.018 on July 1, 1983.
(3) In addition to the adjustments under subsections (1)
and (2) of this section, further adjustments shall be made
beginning on July 1, 1984, and on each July 1st thereafter for
those whose right to compensation was established on or
after July 1, 1971. The adjustment shall be determined by
multiplying the amount of compensation to which they are
entitled by a fraction, the denominator of which shall be the
average monthly wage in the state under RCW 51.08.018 for
the fiscal year in which such person's right to compensation
was established, and the numerator of which shall be the
average monthly wage in the state under RCW 51.08.018 on
July 1st of the year in which the adjustment is being made.
The department or self-insurer shall adjust the resulting compensation rate to the nearest whole cent, not to exceed the
average monthly wage in the state as computed under RCW
51.08.018. [1988 c 161 § 7; 1983 c 203 § 1; 1982 1st ex.s. c
20 § 1; 1979 c 108 § 1; 1977 ex.s. c 202 § 2; 1975 1st ex.s. c
286 § 2.]
Effective date—1982 1st ex.s. c 20: "This act is necessary for the
immediate preservation of the public peace, health, and safety, the support of
the state government and its existing public institutions, and shall take effect
July 1, 1982." [1982 1st ex.s. c 20 § 4.]
51.32.080 Permanent partial disability—Specified—
Unspecified, rules for classification—Injury after permanent partial disability. (1)(a) Until July 1, 1993, for the permanent partial disabilities here specifically described, the
injured worker shall receive compensation as follows:
LOSS BY AMPUTATION
Of leg above the knee joint with short
thigh stump (3" or less below the
tuberosity of ischium)
Of leg at or above knee joint with
functional stump
Of leg below knee joint
Of leg at ankle (Syme)
Of foot at mid-metatarsals
$54,000.00
48,600.00
43,200.00
37,800.00
18,900.00
(2004 Ed.)
Compensation—Right to and Amount
Of great toe with resection of metatarsal
bone
Of great toe at metatarsophalangeal
joint
Of great toe at interphalangeal joint
Of lesser toe (2nd to 5th) with resection of
metatarsal bone
Of lesser toe at metatarsophalangeal
joint
Of lesser toe at proximal interphalangeal
joint
Of lesser toe at distal interphalangeal
joint
Of arm at or above the deltoid insertion or
by disarticulation at the shoulder
Of arm at any point from below the deltoid
insertion to below the elbow joint at
the insertion of the biceps tendon
Of arm at any point from below the elbow
joint distal to the insertion of the
biceps tendon to and including
mid-metacarpal amputation of the
hand
Of all fingers except the thumb at
metacarpophalangeal joints
Of thumb at metacarpophalangeal joint or
with resection of carpometacarpal
bone
Of thumb at interphalangeal joint
Of index finger at metacarpophalangeal
joint or with resection of metacarpal
bone
Of index finger at proximal
interphalangeal joint
Of index finger at distal interphalangeal
joint
Of middle finger at metacarpophalangeal
joint or with resection of metacarpal
bone
Of middle finger at proximal
interphalangeal joint
Of middle finger at distal interphalangeal
joint
Of ring finger at metacarpophalangeal
joint or with resection of metacarpal
bone
Of ring finger at proximal interphalangeal
joint
Of ring finger at distal interphalangeal
joint
Of little finger at metacarpophalangeal
joint or with resection of metacarpal
bone
Of little finger at proximal interphalangeal
joint
Of little finger at distal interphalangeal
joint
MISCELLANEOUS
9,720.00
12,150.00
Loss of one eye by enucleation
Loss of central visual acuity in one eye
21,600.00
18,000.00
(2004 Ed.)
11,340.00
6,804.00
3,600.00
4,140.00
2,016.00
1,494.00
378.00
54,000.00
51,300.00
48,600.00
29,160.00
19,440.00
9,720.00
5,346.00
9,720.00
7,776.00
4,374.00
4,860.00
3,888.00
2,430.00
2,430.00
1,944.00
972.00
Complete loss of hearing in both ears
Complete loss of hearing in one ear
51.32.075
43,200.00
7,200.00
(b) Beginning on July 1, 1993, compensation under this
subsection shall be computed as follows:
(i) Beginning on July 1, 1993, the compensation amounts
for the specified disabilities listed in (a) of this subsection
shall be increased by thirty-two percent; and
(ii) Beginning on July 1, 1994, and each July 1 thereafter, the compensation amounts for the specified disabilities
listed in (a) of this subsection, as adjusted under (b)(i) of this
subsection, shall be readjusted to reflect the percentage
change in the consumer price index, calculated as follows:
The index for the calendar year preceding the year in which
the July calculation is made, to be known as "calendar year
A," is divided by the index for the calendar year preceding
calendar year A, and the resulting ratio is multiplied by the
compensation amount in effect on June 30 immediately preceding the July 1st on which the respective calculation is
made. For the purposes of this subsection, "index" means the
same as the definition in RCW 2.12.037(1).
(2) Compensation for amputation of a member or part
thereof at a site other than those specified in subsection (1) of
this section, and for loss of central visual acuity and loss of
hearing other than complete, shall be in proportion to that
which such other amputation or partial loss of visual acuity or
hearing most closely resembles and approximates. Compensation shall be calculated based on the adjusted schedule of
compensation in effect for the respective time period as prescribed in subsection (1) of this section.
(3)(a) Compensation for any other permanent partial disability not involving amputation shall be in the proportion
which the extent of such other disability, called unspecified
disability, shall bear to the disabilities specified in subsection
(1) of this section, which most closely resembles and
approximates in degree of disability such other disability, and
compensation for any other unspecified permanent partial
disability shall be in an amount as measured and compared to
total bodily impairment. To reduce litigation and establish
more certainty and uniformity in the rating of unspecified
permanent partial disabilities, the department shall enact
rules having the force of law classifying such disabilities in
the proportion which the department shall determine such
disabilities reasonably bear to total bodily impairment. In
enacting such rules, the department shall give consideration
to, but need not necessarily adopt, any nationally recognized
medical standards or guides for determining various bodily
impairments.
(b) Until July 1, 1993, for purposes of calculating monetary benefits under (a) of this subsection, the amount payable
for total bodily impairment shall be deemed to be ninety
thousand dollars. Beginning on July 1, 1993, for purposes of
calculating monetary benefits under (a) of this subsection, the
amount payable for total bodily impairment shall be adjusted
as follows:
(i) Beginning on July 1, 1993, the amount payable for
total bodily impairment under this section shall be increased
to one hundred eighteen thousand eight hundred dollars; and
[Title 51 RCW—page 47]
51.32.090
Title 51 RCW: Industrial Insurance
(ii) Beginning on July 1, 1994, and each July 1 thereafter, the amount payable for total bodily impairment prescribed in (b)(i) of this subsection shall be adjusted as provided in subsection (1)(b)(ii) of this section.
(c) Until July 1, 1993, the total compensation for all
unspecified permanent partial disabilities resulting from the
same injury shall not exceed the sum of ninety thousand dollars. Beginning on July 1, 1993, total compensation for all
unspecified permanent partial disabilities resulting from the
same injury shall not exceed a sum calculated as follows:
(i) Beginning on July 1, 1993, the sum shall be increased
to one hundred eighteen thousand eight hundred dollars; and
(ii) Beginning on July 1, 1994, and each July 1 thereafter, the sum prescribed in (b)(i) of this subsection shall be
adjusted as provided in subsection (1)(b)(ii) of this section.
(4) If permanent partial disability compensation is followed by permanent total disability compensation, any portion of the permanent partial disability compensation which
exceeds the amount that would have been paid the injured
worker if permanent total disability compensation had been
paid in the first instance, shall be deducted from the pension
reserve of such injured worker and his or her monthly compensation payments shall be reduced accordingly.
(5) Should a worker receive an injury to a member or
part of his or her body already, from whatever cause, permanently partially disabled, resulting in the amputation thereof
or in an aggravation or increase in such permanent partial disability but not resulting in the permanent total disability of
such worker, his or her compensation for such partial disability shall be adjudged with regard to the previous disability of
the injured member or part and the degree or extent of the
aggravation or increase of disability thereof.
(6) When the compensation provided for in subsections
(1) through (3) of this section exceeds three times the average
monthly wage in the state as computed under the provisions
of RCW 51.08.018, payment shall be made in monthly payments in accordance with the schedule of temporary total disability payments set forth in RCW 51.32.090 until such compensation is paid to the injured worker in full, except that the
first monthly payment shall be in an amount equal to three
times the average monthly wage in the state as computed
under the provisions of RCW 51.08.018, and interest shall be
paid at the rate of eight percent on the unpaid balance of such
compensation commencing with the second monthly payment. However, upon application of the injured worker or
survivor the monthly payment may be converted, in whole or
in part, into a lump sum payment, in which event the monthly
payment shall cease in whole or in part. Such conversion
may be made only upon written application of the injured
worker or survivor to the department and shall rest in the discretion of the department depending upon the merits of each
individual application. Upon the death of a worker all unpaid
installments accrued shall be paid according to the payment
schedule established prior to the death of the worker to the
widow or widower, or if there is no widow or widower surviving, to the dependent children of such claimant, and if
there are no such dependent children, then to such other
dependents as defined by this title.
(7) Awards payable under this section are governed by
the schedule in effect on the date of injury. [1993 c 520 § 1;
1988 c 161 § 6; 1986 c 58 § 2; 1982 1st ex.s. c 20 § 2; 1979 c
[Title 51 RCW—page 48]
104 § 1; 1977 ex.s. c 350 § 46; 1972 ex.s. c 43 § 21; 1971
ex.s. c 289 § 10; 1965 ex.s. c 165 § 1; 1961 c 274 § 3; 1961 c
23 § 51.32.080. Prior: 1957 c 70 § 32; prior: 1951 c 115 §
4; 1949 c 219 § 1, part; 1947 c 246 § 1, part; 1929 c 132 § 2,
part; 1927 c 310 § 4, part; 1923 c 136 § 2, part; 1919 c 131 §
4, part; 1917 c 28 § 1, part; 1913 c 148 § 1, part; 1911 c 74 §
5, part; Rem. Supp. 1949 § 7679, part.]
Effective date—1993 c 520: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[May 18, 1993]." [1993 c 520 § 2.]
Effective dates—1988 c 161: See note following RCW 51.32.050.
Effective date—1986 c 58 §§ 2, 3: "Sections 2 and 3 of this act shall
take effect on July 1, 1986." [1986 c 58 § 7.]
Effective date—1982 1st ex.s. c 20: See note following RCW
51.32.075.
51.32.090
51.32.090 Temporary total disability—Partial restoration of earning power—Return to available work—
When employer continues wages—Limitations. (Expires
June 30, 2007.) (1) When the total disability is only temporary, the schedule of payments contained in RCW 51.32.060
(1) and (2) shall apply, so long as the total disability continues.
(2) Any compensation payable under this section for
children not in the custody of the injured worker as of the date
of injury shall be payable only to such person as actually is
providing the support for such child or children pursuant to
the order of a court of record providing for support of such
child or children.
(3)(a) As soon as recovery is so complete that the present
earning power of the worker, at any kind of work, is restored
to that existing at the time of the occurrence of the injury, the
payments shall cease. If and so long as the present earning
power is only partially restored, the payments shall:
(i) For claims for injuries that occurred before May 7,
1993, continue in the proportion which the new earning
power shall bear to the old; or
(ii) For claims for injuries occurring on or after May 7,
1993, equal eighty percent of the actual difference between
the worker's present wages and earning power at the time of
injury, but: (A) The total of these payments and the worker's
present wages may not exceed one hundred fifty percent of
the average monthly wage in the state as computed under
RCW 51.08.018; (B) the payments may not exceed one hundred percent of the entitlement as computed under subsection
(1) of this section; and (C) the payments may not be less than
the worker would have received if (a)(i) of this subsection
had been applicable to the worker's claim.
(b) No compensation shall be payable under this subsection (3) unless the loss of earning power shall exceed five
percent.
(4)(a) Whenever the employer of injury requests that a
worker who is entitled to temporary total disability under this
chapter be certified by a physician or licensed advanced registered nurse practitioner as able to perform available work
other than his or her usual work, the employer shall furnish to
the physician or licensed advanced registered nurse practitioner, with a copy to the worker, a statement describing the
work available with the employer of injury in terms that will
(2004 Ed.)
Compensation—Right to and Amount
enable the physician or licensed advanced registered nurse
practitioner to relate the physical activities of the job to the
worker's disability. The physician or licensed advanced registered nurse practitioner shall then determine whether the
worker is physically able to perform the work described. The
worker's temporary total disability payments shall continue
until the worker is released by his or her physician or licensed
advanced registered nurse practitioner for the work, and
begins the work with the employer of injury. If the work
thereafter comes to an end before the worker's recovery is
sufficient in the judgment of his or her physician or licensed
advanced registered nurse practitioner to permit him or her to
return to his or her usual job, or to perform other available
work offered by the employer of injury, the worker's temporary total disability payments shall be resumed. Should the
available work described, once undertaken by the worker,
impede his or her recovery to the extent that in the judgment
of his or her physician or licensed advanced registered nurse
practitioner he or she should not continue to work, the
worker's temporary total disability payments shall be
resumed when the worker ceases such work.
(b) Once the worker returns to work under the terms of
this subsection (4), he or she shall not be assigned by the
employer to work other than the available work described
without the worker's written consent, or without prior review
and approval by the worker's physician or licensed advanced
registered nurse practitioner.
(c) If the worker returns to work under this subsection
(4), any employee health and welfare benefits that the worker
was receiving at the time of injury shall continue or be
resumed at the level provided at the time of injury. Such benefits shall not be continued or resumed if to do so is inconsistent with the terms of the benefit program, or with the terms
of the collective bargaining agreement currently in force.
(d) In the event of any dispute as to the worker's ability
to perform the available work offered by the employer, the
department shall make the final determination.
(5) No worker shall receive compensation for or during
the day on which injury was received or the three days following the same, unless his or her disability shall continue for
a period of fourteen consecutive calendar days from date of
injury: PROVIDED, That attempts to return to work in the
first fourteen days following the injury shall not serve to
break the continuity of the period of disability if the disability
continues fourteen days after the injury occurs.
(6) Should a worker suffer a temporary total disability
and should his or her employer at the time of the injury continue to pay him or her the wages which he or she was earning
at the time of such injury, such injured worker shall not
receive any payment provided in subsection (1) of this section during the period his or her employer shall so pay such
wages.
(7) In no event shall the monthly payments provided in
this section exceed the applicable percentage of the average
monthly wage in the state as computed under the provisions
of RCW 51.08.018 as follows:
(2004 Ed.)
AFTER
June 30, 1993
June 30, 1994
June 30, 1995
June 30, 1996
51.32.090
PERCENTAGE
105%
110%
115%
120%
(8) If the supervisor of industrial insurance determines
that the worker is voluntarily retired and is no longer attached
to the work force, benefits shall not be paid under this section. [2004 c 65 § 9. Prior: 1993 c 521 § 3; 1993 c 299 § 1;
1993 c 271 § 1; 1988 c 161 § 4; prior: 1988 c 161 § 3; 1986
c 59 § 3; 1986 c 59 § 2; prior: 1985 c 462 § 6; 1980 c 129 §
1; 1977 ex.s. c 350 § 47; 1975 1st ex.s. c 235 § 1; 1972 ex.s.
c 43 § 22; 1971 ex.s. c 289 § 11; 1965 ex.s. c 122 § 3; 1961 c
274 § 4; 1961 c 23 § 51.32.090; prior: 1957 c 70 § 33; 1955
c 74 § 8; prior: 1951 c 115 § 3; 1949 c 219 § 1, part; 1947 c
246 § 1, part; 1929 c 132 § 2, part; 1927 c 310 § 4, part; 1923
c 136 § 2, part; 1919 c 131 § 4, part; 1917 c 28 § 1, part; 1913
c 148 § 1, part; 1911 c 74 § 5, part; Rem. Supp. 1949 § 7679,
part.]
Report to legislature--Effective date--Expiration date--Severability—2004 c 65: See notes following RCW 51.04.030.
Effective date—1993 c 521: See note following RCW 51.32.050.
Effective date—1993 c 299: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1,
1993." [1993 c 299 § 2.]
Effective date—1993 c 271: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[May 7, 1993]." [1993 c 271 § 2.]
Benefit increases—Application to certain retrospective rating
agreements—Effective dates—1988 c 161: See notes following RCW
51.32.050.
Expiration date—1986 c 59 § 2; Effective dates—1986 c 59 §§ 3, 5:
"Section 2 of this act shall expire on June 30, 1989. Section 3 of this act shall
take effect on June 30, 1989. Section 5 of this act shall take effect on July 1,
1986." [1986 c 59 § 6.]
Program and fiscal review—1985 c 462: See note following RCW
41.04.500.
51.32.090
51.32.090 Temporary total disability—Partial restoration of earning power—Return to available work—
When employer continues wages—Limitations. (Effective June 30, 2007.) (1) When the total disability is only temporary, the schedule of payments contained in RCW
51.32.060 (1) and (2) shall apply, so long as the total disability continues.
(2) Any compensation payable under this section for
children not in the custody of the injured worker as of the date
of injury shall be payable only to such person as actually is
providing the support for such child or children pursuant to
the order of a court of record providing for support of such
child or children.
(3)(a) As soon as recovery is so complete that the present
earning power of the worker, at any kind of work, is restored
to that existing at the time of the occurrence of the injury, the
payments shall cease. If and so long as the present earning
power is only partially restored, the payments shall:
(i) For claims for injuries that occurred before May 7,
1993, continue in the proportion which the new earning
power shall bear to the old; or
[Title 51 RCW—page 49]
51.32.095
Title 51 RCW: Industrial Insurance
(ii) For claims for injuries occurring on or after May 7,
1993, equal eighty percent of the actual difference between
the worker's present wages and earning power at the time of
injury, but: (A) The total of these payments and the worker's
present wages may not exceed one hundred fifty percent of
the average monthly wage in the state as computed under
RCW 51.08.018; (B) the payments may not exceed one hundred percent of the entitlement as computed under subsection
(1) of this section; and (C) the payments may not be less than
the worker would have received if (a)(i) of this subsection
had been applicable to the worker's claim.
(b) No compensation shall be payable under this subsection (3) unless the loss of earning power shall exceed five
percent.
(4)(a) Whenever the employer of injury requests that a
worker who is entitled to temporary total disability under this
chapter be certified by a physician as able to perform available work other than his or her usual work, the employer shall
furnish to the physician, with a copy to the worker, a statement describing the work available with the employer of
injury in terms that will enable the physician to relate the
physical activities of the job to the worker's disability. The
physician shall then determine whether the worker is physically able to perform the work described. The worker's temporary total disability payments shall continue until the
worker is released by his or her physician for the work, and
begins the work with the employer of injury. If the work
thereafter comes to an end before the worker's recovery is
sufficient in the judgment of his or her physician to permit
him or her to return to his or her usual job, or to perform other
available work offered by the employer of injury, the
worker's temporary total disability payments shall be
resumed. Should the available work described, once undertaken by the worker, impede his or her recovery to the extent
that in the judgment of his or her physician he or she should
not continue to work, the worker's temporary total disability
payments shall be resumed when the worker ceases such
work.
(b) Once the worker returns to work under the terms of
this subsection (4), he or she shall not be assigned by the
employer to work other than the available work described
without the worker's written consent, or without prior review
and approval by the worker's physician.
(c) If the worker returns to work under this subsection
(4), any employee health and welfare benefits that the worker
was receiving at the time of injury shall continue or be
resumed at the level provided at the time of injury. Such benefits shall not be continued or resumed if to do so is inconsistent with the terms of the benefit program, or with the terms
of the collective bargaining agreement currently in force.
(d) In the event of any dispute as to the worker's ability
to perform the available work offered by the employer, the
department shall make the final determination.
(5) No worker shall receive compensation for or during
the day on which injury was received or the three days following the same, unless his or her disability shall continue for
a period of fourteen consecutive calendar days from date of
injury: PROVIDED, That attempts to return to work in the
first fourteen days following the injury shall not serve to
break the continuity of the period of disability if the disability
continues fourteen days after the injury occurs.
[Title 51 RCW—page 50]
(6) Should a worker suffer a temporary total disability
and should his or her employer at the time of the injury continue to pay him or her the wages which he or she was earning
at the time of such injury, such injured worker shall not
receive any payment provided in subsection (1) of this section during the period his or her employer shall so pay such
wages.
(7) In no event shall the monthly payments provided in
this section exceed the applicable percentage of the average
monthly wage in the state as computed under the provisions
of RCW 51.08.018 as follows:
AFTER
PERCENTAGE
June 30, 1993
June 30, 1994
June 30, 1995
June 30, 1996
105%
110%
115%
120%
(8) If the supervisor of industrial insurance determines
that the worker is voluntarily retired and is no longer attached
to the work force, benefits shall not be paid under this section. [1993 c 521 § 3; 1993 c 299 § 1; 1993 c 271 § 1; 1988
c 161 § 4. Prior: 1988 c 161 § 3; 1986 c 59 § 3; (1986 c 59 §
2 expired June 30, 1989, pursuant to 1986 c 59 § 6); prior:
1985 c 462 § 6; 1980 c 129 § 1; 1977 ex.s. c 350 § 47; 1975
1st ex.s. c 235 § 1; 1972 ex.s. c 43 § 22; 1971 ex.s. c 289 § 11;
1965 ex.s. c 122 § 3; 1961 c 274 § 4; 1961 c 23 § 51.32.090;
prior: 1957 c 70 § 33; 1955 c 74 § 8; prior: 1951 c 115 § 3;
1949 c 219 § 1, part; 1947 c 246 § 1, part; 1929 c 132 § 2,
part; 1927 c 310 § 4, part; 1923 c 136 § 2, part; 1919 c 131 §
4, part; 1917 c 28 § 1, part; 1913 c 148 § 1, part; 1911 c 74 §
5, part; Rem. Supp. 1949 § 7679, part.]
Reviser's note: This section was amended by 1993 c 271 § 1, 1993 c
299 § 1, and by 1993 c 521 § 3, each without reference to the other. All
amendments are incorporated in the publication of this section pursuant to
RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Effective date—1993 c 521: See note following RCW 51.32.050.
Effective date—1993 c 299: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1,
1993." [1993 c 299 § 2.]
Effective date—1993 c 271: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[May 7, 1993]." [1993 c 271 § 2.]
Benefit increases—Application to certain retrospective rating
agreements—Effective dates—1988 c 161: See notes following RCW
51.32.050.
Expiration date—1986 c 59 § 2; Effective dates—1986 c 59 §§ 3, 5:
"Section 2 of this act shall expire on June 30, 1989. Section 3 of this act shall
take effect on June 30, 1989. Section 5 of this act shall take effect on July 1,
1986." [1986 c 59 § 6.]
Program and fiscal review—1985 c 462: See note following RCW
41.04.500.
51.32.095
51.32.095 Vocational rehabilitation services—Benefits—Priorities—Allowable costs—Performance criteria. (Expires June 30, 2007.) (1) One of the primary purposes of this title is to enable the injured worker to become
employable at gainful employment. To this end, the department or self-insurers shall utilize the services of individuals
and organizations, public or private, whose experience, training, and interests in vocational rehabilitation and retraining
qualify them to lend expert assistance to the supervisor of
(2004 Ed.)
Compensation—Right to and Amount
industrial insurance in such programs of vocational rehabilitation as may be reasonable to make the worker employable
consistent with his or her physical and mental status. Where,
after evaluation and recommendation by such individuals or
organizations and prior to final evaluation of the worker's
permanent disability and in the sole opinion of the supervisor
or supervisor's designee, whether or not medical treatment
has been concluded, vocational rehabilitation is both necessary and likely to enable the injured worker to become
employable at gainful employment, the supervisor or supervisor's designee may, in his or her sole discretion, pay or, if
the employer is a self-insurer, direct the self-insurer to pay
the cost as provided in subsection (3) of this section.
(2) When in the sole discretion of the supervisor or the
supervisor's designee vocational rehabilitation is both necessary and likely to make the worker employable at gainful
employment, then the following order of priorities shall be
used:
(a) Return to the previous job with the same employer;
(b) Modification of the previous job with the same
employer including transitional return to work;
(c) A new job with the same employer in keeping with
any limitations or restrictions;
(d) Modification of a new job with the same employer
including transitional return to work;
(e) Modification of the previous job with a new
employer;
(f) A new job with a new employer or self-employment
based upon transferable skills;
(g) Modification of a new job with a new employer;
(h) A new job with a new employer or self-employment
involving on-the-job training;
(i) Short-term retraining and job placement.
(3)(a) Except as provided in (b) of this subsection, costs
for vocational rehabilitation benefits allowed by the supervisor or supervisor's designee under subsection (1) of this section may include the cost of books, tuition, fees, supplies,
equipment, transportation, child or dependent care, and other
necessary expenses for any such worker in an amount not to
exceed three thousand dollars in any fifty-two week period
except as authorized by *RCW 51.60.060, and the cost of
continuing the temporary total disability compensation under
RCW 51.32.090 while the worker is actively and successfully
undergoing a formal program of vocational rehabilitation.
(b) Beginning with vocational rehabilitation plans
approved on or after July 1, 1999, costs for vocational rehabilitation benefits allowed by the supervisor or supervisor's
designee under subsection (1) of this section may include the
cost of books, tuition, fees, supplies, equipment, child or
dependent care, and other necessary expenses for any such
worker in an amount not to exceed four thousand dollars in
any fifty-two week period except as authorized by *RCW
51.60.060, and the cost of transportation and continuing the
temporary total disability compensation under RCW
51.32.090 while the worker is actively and successfully
undergoing a formal program of vocational rehabilitation.
(c) The expenses allowed under (a) or (b) of this subsection may include training fees for on-the-job training and the
cost of furnishing tools and other equipment necessary for
self-employment or reemployment. However, compensation
or payment of retraining with job placement expenses under
(2004 Ed.)
51.32.095
(a) or (b) of this subsection may not be authorized for a period
of more than fifty-two weeks, except that such period may, in
the sole discretion of the supervisor after his or her review, be
extended for an additional fifty-two weeks or portion thereof
by written order of the supervisor.
(d) In cases where the worker is required to reside away
from his or her customary residence, the reasonable cost of
board and lodging shall also be paid.
(e) Costs paid under this subsection shall be chargeable
to the employer's cost experience or shall be paid by the selfinsurer as the case may be.
(4) In addition to the vocational rehabilitation expenditures provided for under subsection (3) of this section, an
additional five thousand dollars may, upon authorization of
the supervisor or the supervisor's designee, be expended for:
(a) Accommodations for an injured worker that are medically
necessary for the worker to participate in an approved retraining plan; and (b) accommodations necessary to perform the
essential functions of an occupation in which an injured
worker is seeking employment, consistent with the retraining
plan or the recommendations of a vocational evaluation. The
injured worker's attending physician or licensed advanced
registered nurse practitioner must verify the necessity of the
modifications or accommodations. The total expenditures
authorized in this subsection and the expenditures authorized
under RCW 51.32.250 shall not exceed five thousand dollars.
(5) The department shall establish criteria to monitor the
quality and effectiveness of rehabilitation services provided
by the individuals and organizations used under subsection
(1) of this section. The state fund shall make referrals for
vocational rehabilitation services based on these performance
criteria.
(6) The department shall engage in, where feasible and
cost-effective, a cooperative program with the state employment security department to provide job placement services
under this section.
(7) The benefits in this section shall be provided for the
injured workers of self-insured employers. Self-insurers
shall report both benefits provided and benefits denied under
this section in the manner prescribed by the department by
rule adopted under chapter 34.05 RCW. The director may, in
his or her sole discretion and upon his or her own initiative or
at any time that a dispute arises under this section, promptly
make such inquiries as circumstances require and take such
other action as he or she considers will properly determine
the matter and protect the rights of the parties.
(8) Except as otherwise provided in this section, the benefits provided for in this section are available to any otherwise eligible worker regardless of the date of industrial
injury. However, claims shall not be reopened solely for
vocational rehabilitation purposes. [2004 c 65 § 10; 1999 c
110 § 1. Prior: 1996 c 151 § 1; 1996 c 59 § 1; 1988 c 161 §
9; 1985 c 339 § 2; 1983 c 70 § 2; 1982 c 63 § 11; 1980 c 14 §
10. Prior: 1977 ex.s. c 350 § 48; 1977 ex.s. c 323 § 16; 1972
ex.s. c 43 § 23; 1971 ex.s. c 289 § 12.]
*Reviser's note: RCW 51.60.060 expired June 30, 1999, pursuant to
1994 c 29 § 8.
Report to legislature—Effective date—Expiration date—Severability—2004 c 65: See notes following RCW 51.04.030.
Effective date—1999 c 110 § 1: "Section 1 of this act is necessary for
the immediate preservation of the public peace, health, or safety, or support
[Title 51 RCW—page 51]
51.32.095
Title 51 RCW: Industrial Insurance
of the state government and its existing public institutions, and takes effect
July 1, 1999." [1999 c 110 § 3.]
Legislative finding—1985 c 339: "The legislature finds that the vocational rehabilitation program created by chapter 63, Laws of 1982, has failed
to assist injured workers to return to suitable gainful employment without
undue loss of time from work and has increased costs of industrial insurance
for employers and employees alike. The legislature further finds that the
administrative structure established within the industrial insurance division
of the department of labor and industries to develop and oversee the provision of vocational rehabilitation services has not provided efficient delivery
of vocational rehabilitation services. The legislature finds that restructuring
the state's vocational rehabilitation program under the department of labor
and industries is necessary." [1985 c 339 § 1.]
Severability—1985 c 339: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1985 c 339 § 6.]
Severability—1983 c 70: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1983 c 70 § 5.]
Effective dates—Implementation—1982 c 63: "Section 4 of this act
is necessary for the immediate preservation of the public peace, health, and
safety, the support of the state government and its existing public institutions, and shall take effect immediately [March 26, 1982]. All other sections
of this act shall take effect on January 1, 1983. The director of the department of labor and industries is authorized to immediately take such steps as
are necessary to insure that this act is implemented on its effective dates."
[1982 c 63 § 26.]
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
51.32.095
51.32.095 Vocational rehabilitation services—Benefits—Priorities—Allowable costs—Performance criteria. (Effective June 30, 2007.) (1) One of the primary purposes of this title is to enable the injured worker to become
employable at gainful employment. To this end, the department or self-insurers shall utilize the services of individuals
and organizations, public or private, whose experience, training, and interests in vocational rehabilitation and retraining
qualify them to lend expert assistance to the supervisor of
industrial insurance in such programs of vocational rehabilitation as may be reasonable to make the worker employable
consistent with his or her physical and mental status. Where,
after evaluation and recommendation by such individuals or
organizations and prior to final evaluation of the worker's
permanent disability and in the sole opinion of the supervisor
or supervisor's designee, whether or not medical treatment
has been concluded, vocational rehabilitation is both necessary and likely to enable the injured worker to become
employable at gainful employment, the supervisor or supervisor's designee may, in his or her sole discretion, pay or, if
the employer is a self-insurer, direct the self-insurer to pay
the cost as provided in subsection (3) of this section.
(2) When in the sole discretion of the supervisor or the
supervisor's designee vocational rehabilitation is both necessary and likely to make the worker employable at gainful
employment, then the following order of priorities shall be
used:
(a) Return to the previous job with the same employer;
(b) Modification of the previous job with the same
employer including transitional return to work;
(c) A new job with the same employer in keeping with
any limitations or restrictions;
[Title 51 RCW—page 52]
(d) Modification of a new job with the same employer
including transitional return to work;
(e) Modification of the previous job with a new
employer;
(f) A new job with a new employer or self-employment
based upon transferable skills;
(g) Modification of a new job with a new employer;
(h) A new job with a new employer or self-employment
involving on-the-job training;
(i) Short-term retraining and job placement.
(3)(a) Except as provided in (b) of this subsection, costs
for vocational rehabilitation benefits allowed by the supervisor or supervisor's designee under subsection (1) of this section may include the cost of books, tuition, fees, supplies,
equipment, transportation, child or dependent care, and other
necessary expenses for any such worker in an amount not to
exceed three thousand dollars in any fifty-two week period
except as authorized by *RCW 51.60.060, and the cost of
continuing the temporary total disability compensation under
RCW 51.32.090 while the worker is actively and successfully
undergoing a formal program of vocational rehabilitation.
(b) Beginning with vocational rehabilitation plans
approved on or after July 1, 1999, costs for vocational rehabilitation benefits allowed by the supervisor or supervisor's
designee under subsection (1) of this section may include the
cost of books, tuition, fees, supplies, equipment, child or
dependent care, and other necessary expenses for any such
worker in an amount not to exceed four thousand dollars in
any fifty-two week period except as authorized by *RCW
51.60.060, and the cost of transportation and continuing the
temporary total disability compensation under RCW
51.32.090 while the worker is actively and successfully
undergoing a formal program of vocational rehabilitation.
(c) The expenses allowed under (a) or (b) of this subsection may include training fees for on-the-job training and the
cost of furnishing tools and other equipment necessary for
self-employment or reemployment. However, compensation
or payment of retraining with job placement expenses under
(a) or (b) of this subsection may not be authorized for a period
of more than fifty-two weeks, except that such period may, in
the sole discretion of the supervisor after his or her review, be
extended for an additional fifty-two weeks or portion thereof
by written order of the supervisor.
(d) In cases where the worker is required to reside away
from his or her customary residence, the reasonable cost of
board and lodging shall also be paid.
(e) Costs paid under this subsection shall be chargeable
to the employer's cost experience or shall be paid by the selfinsurer as the case may be.
(4) In addition to the vocational rehabilitation expenditures provided for under subsection (3) of this section, an
additional five thousand dollars may, upon authorization of
the supervisor or the supervisor's designee, be expended for:
(a) Accommodations for an injured worker that are medically
necessary for the worker to participate in an approved retraining plan; and (b) accommodations necessary to perform the
essential functions of an occupation in which an injured
worker is seeking employment, consistent with the retraining
plan or the recommendations of a vocational evaluation. The
injured worker's attending physician must verify the necessity of the modifications or accommodations. The total
(2004 Ed.)
Compensation—Right to and Amount
expenditures authorized in this subsection and the expenditures authorized under RCW 51.32.250 shall not exceed five
thousand dollars.
(5) The department shall establish criteria to monitor the
quality and effectiveness of rehabilitation services provided
by the individuals and organizations used under subsection
(1) of this section. The state fund shall make referrals for
vocational rehabilitation services based on these performance
criteria.
(6) The department shall engage in, where feasible and
cost-effective, a cooperative program with the state employment security department to provide job placement services
under this section.
(7) The benefits in this section shall be provided for the
injured workers of self-insured employers. Self-insurers shall
report both benefits provided and benefits denied under this
section in the manner prescribed by the department by rule
adopted under chapter 34.05 RCW. The director may, in his
or her sole discretion and upon his or her own initiative or at
any time that a dispute arises under this section, promptly
make such inquiries as circumstances require and take such
other action as he or she considers will properly determine
the matter and protect the rights of the parties.
(8) Except as otherwise provided in this section, the benefits provided for in this section are available to any otherwise eligible worker regardless of the date of industrial
injury. However, claims shall not be reopened solely for
vocational rehabilitation purposes. [1999 c 110 § 1. Prior:
1996 c 151 § 1; 1996 c 59 § 1; 1988 c 161 § 9; 1985 c 339 §
2; 1983 c 70 § 2; 1982 c 63 § 11; 1980 c 14 § 10. Prior: 1977
ex.s. c 350 § 48; 1977 ex.s. c 323 § 16; 1972 ex.s. c 43 § 23;
1971 ex.s. c 289 § 12.]
*Reviser's note: RCW 51.60.060 expired June 30, 1999, pursuant to
1994 c 29 § 8.
Effective date—1999 c 110 § 1: "Section 1 of this act is necessary for
the immediate preservation of the public peace, health, or safety, or support
of the state government and its existing public institutions, and takes effect
July 1, 1999." [1999 c 110 § 3.]
Legislative finding—1985 c 339: "The legislature finds that the vocational rehabilitation program created by chapter 63, Laws of 1982, has failed
to assist injured workers to return to suitable gainful employment without
undue loss of time from work and has increased costs of industrial insurance
for employers and employees alike. The legislature further finds that the
administrative structure established within the industrial insurance division
of the department of labor and industries to develop and oversee the provision of vocational rehabilitation services has not provided efficient delivery
of vocational rehabilitation services. The legislature finds that restructuring
the state's vocational rehabilitation program under the department of labor
and industries is necessary." [1985 c 339 § 1.]
Severability—1985 c 339: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1985 c 339 § 6.]
Severability—1983 c 70: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1983 c 70 § 5.]
Effective dates—Implementation—1982 c 63: "Section 4 of this act
is necessary for the immediate preservation of the public peace, health, and
safety, the support of the state government and its existing public institutions, and shall take effect immediately [March 26, 1982]. All other sections
of this act shall take effect on January 1, 1983. The director of the department
of labor and industries is authorized to immediately take such steps as are
necessary to insure that this act is implemented on its effective dates." [1982
c 63 § 26.]
(2004 Ed.)
51.32.110
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
51.32.098
51.32.098 Vocational rehabilitation services—Applicability. Nothing in RCW 51.32.095 or in the repeal of chapter 51.41 RCW by section 5, chapter 339, Laws of 1985 shall
be construed as prohibiting the completion of vocational
rehabilitation plans approved under this title prior to May 16,
1985. Injured workers referred for vocational rehabilitation
services under this title, but for whom vocational rehabilitation plans have not been approved by the department under
this title before May 16, 1985, may only be provided vocational rehabilitation services, if applicable, by the department
according to the provisions of RCW 51.32.095. [1985 c 339
§ 4.]
Legislative finding—Severability—1985 c 339: See notes following
RCW 51.32.095.
51.32.100
51.32.100 Preexisting disease. If it is determined that
an injured worker had, at the time of his or her injury, a preexisting disease and that such disease delays or prevents
complete recovery from such injury, it shall be ascertained,
as nearly as possible, the period over which the injury would
have caused disability were it not for the diseased condition
and the extent of permanent partial disability which the injury
would have caused were it not for the disease, and compensation shall be awarded only therefor. [1977 ex.s. c 350 § 49;
1971 ex.s. c 289 § 44; 1961 c 23 § 51.32.100. Prior: 1957 c
70 § 34; prior: 1949 c 219 § 1, part; 1947 c 246 § 1, part;
1929 c 132 § 2, part; 1927 c 310 § 4, part; 1923 c 136 § 2,
part; 1919 c 131 § 4, part; 1917 c 28 § 1, part; 1913 c 148 § 1,
part; 1911 c 74 § 5, part; Rem. Supp. 1949 § 7679, part.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.32.110
51.32.110 Medical examination—Refusal to submit—Traveling expenses—Pay for time lost. (1) Any
worker entitled to receive any benefits or claiming such
under this title shall, if requested by the department or selfinsurer, submit himself or herself for medical examination, at
a time and from time to time, at a place reasonably convenient for the worker and as may be provided by the rules of
the department. An injured worker, whether an alien or other
injured worker, who is not residing in the United States at the
time that a medical examination is requested may be required
to submit to an examination at any location in the United
States determined by the department or self-insurer.
(2) If the worker refuses to submit to medical examination, or obstructs the same, or, if any injured worker shall persist in unsanitary or injurious practices which tend to imperil
or retard his or her recovery, or shall refuse to submit to such
medical or surgical treatment as is reasonably essential to his
or her recovery or refuse or obstruct evaluation or examination for the purpose of vocational rehabilitation or does not
cooperate in reasonable efforts at such rehabilitation, the
department or the self-insurer upon approval by the department, with notice to the worker may suspend any further
action on any claim of such worker so long as such refusal,
obstruction, noncooperation, or practice continues and
reduce, suspend, or deny any compensation for such period:
PROVIDED, That the department or the self-insurer shall not
[Title 51 RCW—page 53]
51.32.112
Title 51 RCW: Industrial Insurance
suspend any further action on any claim of a worker or
reduce, suspend, or deny any compensation if a worker has
good cause for refusing to submit to or to obstruct any examination, evaluation, treatment or practice requested by the
department or required under this section.
(3) If the worker necessarily incurs traveling expenses in
attending the examination pursuant to the request of the
department, such traveling expenses shall be repaid to him or
her out of the accident fund upon proper voucher and audit or
shall be repaid by the self-insurer, as the case may be.
(4)(a) If the medical examination required by this section
causes the worker to be absent from his or her work without
pay:
(i) In the case of a worker insured by the department, the
worker shall be paid compensation out of the accident fund in
an amount equal to his or her usual wages for the time lost
from work while attending the medical examination; or
(ii) In the case of a worker of a self-insurer, the selfinsurer shall pay the worker an amount equal to his or her
usual wages for the time lost from work while attending the
medical examination.
(b) This subsection (4) shall apply prospectively to all
claims regardless of the date of injury. [1997 c 325 § 3; 1993
c 375 § 1; 1980 c 14 § 11. Prior: 1977 ex.s. c 350 § 50; 1977
ex.s. c 323 § 17; 1971 ex.s. c 289 § 13; 1961 c 23 § 51.32.110;
prior: 1917 c 28 § 18; 1915 c 188 § 5; 1911 c 74 § 13; RRS
§ 7688.]
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.32.112
51.32.112 Medical examination—Standards and criteria—Special examinations by chiropractors—Compensation guidelines and reporting criteria. (1) The department shall develop standards for the conduct of special medical examinations to determine permanent disabilities,
including, but not limited to:
(a) The qualifications of persons conducting the examinations;
(b) The criteria for conducting the examinations, including guidelines for the appropriate treatment of injured workers during the examination; and
(c) The content of examination reports.
(2) Within the appropriate scope of practice, chiropractors licensed under chapter 18.25 RCW may conduct special
medical examinations to determine permanent disabilities in
consultation with physicians licensed under chapter 18.57 or
18.71 RCW. The department, in its discretion, may request
that a special medical examination be conducted by a single
chiropractor if the department determines that the sole issues
involved in the examination are within the scope of practice
under chapter 18.25 RCW. However, nothing in this section
authorizes the use as evidence before the board of a chiropractor's determination of the extent of a worker's permanent
disability if the determination is not requested by the department.
(3) The department shall investigate the amount of
examination fees received by persons conducting special
medical examinations to determine permanent disabilities,
including total compensation received for examinations of
[Title 51 RCW—page 54]
department and self-insured claimants, and establish compensation guidelines and compensation reporting criteria.
(4) The department shall investigate the level of compliance of self-insurers with the requirement of full reporting of
claims information to the department, particularly with
respect to medical examinations, and develop effective
enforcement procedures or recommendations for legislation
if needed. [1993 c 515 § 4; 1988 c 114 § 2.]
Intent—1988 c 114: "It is the intent of the legislature that medical
examinations for determining permanent disabilities be conducted fairly and
objectively by qualified examiners and with respect for the dignity of the
injured worker." [1988 c 114 § 1.]
51.32.114
51.32.114 Medical examination—Department to
monitor quality and objectivity. The department shall
examine the credentials of persons conducting special medical examinations and shall monitor the quality and objectivity
of examinations and reports for the department and selfinsured claimants. The department shall adopt rules to ensure
that examinations are performed only by qualified persons
meeting department standards. [1988 c 114 § 3.]
Intent—1988 c 114: See note following RCW 51.32.112.
51.32.120
51.32.120 Further accident after lump sum payment.
Should a further accident occur to a worker who has been
previously the recipient of a lump sum payment under this
title, his or her future compensation shall be adjusted according to the other provisions of this chapter and with regard to
the combined effect of his or her injuries and his or her past
receipt of money under this title. [1977 ex.s. c 350 § 51; 1961
c 23 § 51.32.120. Prior: 1957 c 70 § 35; prior: 1949 c 219 §
1, part; 1947 c 246 § 1, part; 1929 c 132 § 2, part; 1927 c 310
§ 4, part; 1923 c 136 § 2, part; 1919 c 131 § 4, part; 1917 c 28
§ 1, part; 1913 c 148 § 1, part; 1911 c 74 § 5, part; Rem. Supp.
1949 § 7679, part.]
51.32.130
51.32.130 Lump sum for death or permanent total
disability. In case of death or permanent total disability, the
monthly payment provided may be converted, in whole or in
part, into a lump sum payment, not in any case to exceed
eight thousand five hundred dollars, equal or proportionate,
as the case may be, to the value of the annuity then remaining,
to be fixed and certified by the state insurance commissioner,
in which event the monthly payments shall cease in whole or
in part accordingly or proportionately. Such conversion may
be made only upon written application (in case of minor children the application may be by either parent) to the department and shall rest in the discretion of the department. Within
the rule aforesaid the amount and value of the lump sum payment may be agreed upon between the department and applicant. In the event any payment shall be due to an alien residing in a foreign country, the department may settle the same
by making a lump sum payment in such amount as may be
agreed to by such alien, not to exceed fifty percent of the
value of the annuity then remaining.
Nothing herein shall preclude the department from making, and authority is hereby given it to make, on its own
motion, lump sum payments equal or proportionate, as the
case may be, to the value of the annuity then remaining, in
full satisfaction of claims due to dependents. [1961 c 23 §
51.32.130. Prior: 1957 c 70 § 45; prior: 1941 c 209 § 2; 1929
(2004 Ed.)
Compensation—Right to and Amount
c 132 § 3; 1927 c 310 § 6(i); 1917 c 29 § 22; 1911 c 74 § 7;
Rem. Supp. 1941 § 7681.]
51.32.135
51.32.135 Closing of claim in pension cases—Consent of spouse. In pension cases when a worker or beneficiary closes his or her claim by full conversion to a lump sum
or in any other manner as provided in RCW 51.32.130 and
51.32.150, such action shall be conclusive and effective to
bar any subsequent application or claim relative thereto by
the worker or any beneficiary which would otherwise exist
had such person not elected to close the claim: PROVIDED,
The director may require the spouse of such worker to consent in writing as a prerequisite to conversion and/or the closing of such claim. [1977 ex.s. c 350 § 52; 1973 1st ex.s. c 154
§ 98; 1961 c 23 § 51.32.135. Prior: 1953 c 143 § 1.]
Severability—1973 1st ex.s. c 154: See note following RCW 2.12.030.
51.32.140
51.32.140 Nonresident alien beneficiary. Except as
otherwise provided by treaty or this title, whenever compensation is payable to a beneficiary who is an alien not residing
in the United States, the department or self-insurer, as the
case may be, shall pay the compensation to which a resident
beneficiary is entitled under this title. But if a nonresident
alien beneficiary is a citizen of a government having a compensation law which excludes citizens of the United States,
either resident or nonresident, from partaking of the benefit
of such law in as favorable a degree as herein extended to
nonresident aliens, he or she shall receive no compensation.
No payment shall be made to any beneficiary residing in any
country with which the United States does not maintain diplomatic relations when such payment is due. [1997 c 325 § 5;
1971 ex.s. c 289 § 45; 1961 c 23 § 51.32.140. Prior: 1957 c
70 § 36; prior: 1947 c 56 § 1, part; 1927 c 310 § 7, part; 1923
c 136 § 4, part; 1921 c 182 § 6, part; 1919 c 131 § 6, part;
1911 c 74 § 10, part; Rem. Supp. 1947 § 7684, part.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.32.150
51.32.150 Lump sum to beneficiary outside state. If
a beneficiary shall reside or move out of the state, the department may, with the written consent of the beneficiary, convert any monthly payments provided for such cases into a
lump sum payment (not in any case to exceed the value of the
annuity then remaining, to be fixed and certified by the state
insurance commissioner, but in no case to exceed the sum
provided in RCW 51.32.130 as now or hereafter amended).
[1977 ex.s. c 323 § 18; 1961 c 23 § 51.32.150. Prior: 1959 c
308 § 5; 1957 c 70 § 37; prior: 1949 c 219 § 1, part; 1947 c
246 § 1, part; 1929 c 132 § 2, part; 1927 c 310 § 4, part; 1923
c 136 § 2, part; 1919 c 131 § 4, part; 1917 c 28 § 1, part; 1913
c 148 § 1, part; 1911 c 74 § 5, part; Rem. Supp. 1949 § 7679,
part.]
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
51.32.160
51.32.160 Aggravation, diminution, or termination.
(1)(a) If aggravation, diminution, or termination of disability
takes place, the director may, upon the application of the beneficiary, made within seven years from the date the first closing order becomes final, or at any time upon his or her own
(2004 Ed.)
51.32.180
motion, readjust the rate of compensation in accordance with
the rules in this section provided for the same, or in a proper
case terminate the payment: PROVIDED, That the director
may, upon application of the worker made at any time, provide proper and necessary medical and surgical services as
authorized under RCW 51.36.010. The department shall
promptly mail a copy of the application to the employer at the
employer's last known address as shown by the records of the
department.
(b) "Closing order" as used in this section means an order
based on factors which include medical recommendation,
advice, or examination.
(c) Applications for benefits where the claim has been
closed without medical recommendation, advice, or examination are not subject to the seven year limitation of this section. The preceding sentence shall not apply to any closing
order issued prior to July 1, 1981. First closing orders issued
between July 1, 1981, and July 1, 1985, shall, for the purposes of this section only, be deemed issued on July 1, 1985.
The time limitation of this section shall be ten years in claims
involving loss of vision or function of the eyes.
(d) If an order denying an application to reopen filed on
or after July 1, 1988, is not issued within ninety days of
receipt of such application by the self-insured employer or
the department, such application shall be deemed granted.
However, for good cause, the department may extend the
time for making the final determination on the application for
an additional sixty days.
(2) If a worker receiving a pension for total disability
returns to gainful employment for wages, the director may
suspend or terminate the rate of compensation established for
the disability without producing medical evidence that shows
that a diminution of the disability has occurred.
(3) No act done or ordered to be done by the director, or
the department prior to the signing and filing in the matter of
a written order for such readjustment shall be grounds for
such readjustment. [1995 c 253 § 2; 1988 c 161 § 11; 1986 c
59 § 4; 1973 1st ex.s. c 192 § 1; 1961 c 23 § 51.32.160. Prior:
1957 c 70 § 38; prior: 1951 c 115 § 5; 1949 c 219 § 1, part;
1947 c 246 § 1, part; 1929 c 132 § 2, part; 1927 c 310 § 4,
part; 1923 c 136 § 2, part; 1919 c 131 § 4, part; 1917 c 28 § 1,
part; 1913 c 148 § 1, part; 1911 c 74 § 5, part; Rem. Supp.
1949 § 7679, part.]
51.32.180
51.32.180 Occupational diseases—Limitation. Every
worker who suffers disability from an occupational disease in
the course of employment under the mandatory or elective
adoption provisions of this title, or his or her family and
dependents in case of death of the worker from such disease
or infection, shall receive the same compensation benefits
and medical, surgical and hospital care and treatment as
would be paid and provided for a worker injured or killed in
employment under this title, except as follows: (a) This section and RCW 51.16.040 shall not apply where the last exposure to the hazards of the disease or infection occurred prior
to January 1, 1937; and (b) for claims filed on or after July 1,
1988, the rate of compensation for occupational diseases
shall be established as of the date the disease requires medical
treatment or becomes totally or partially disabling, whichever
occurs first, and without regard to the date of the contraction
of the disease or the date of filing the claim. [1988 c 161 § 5;
[Title 51 RCW—page 55]
51.32.185
Title 51 RCW: Industrial Insurance
1977 ex.s. c 350 § 53; 1971 ex.s. c 289 § 49; 1961 c 23 §
51.32.180. Prior: 1959 c 308 § 19; prior: 1941 c 235 § 1,
part; 1939 c 135 § 1, part; 1937 c 212 § 1, part; Rem. Supp.
1941 § 7679-1, part.]
Benefit increases—Application to certain retrospective rating
agreements—1988 c 161: See notes following RCW 51.32.050.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.32.185
51.32.185 Occupational diseases—Presumption of
occupational disease for fire fighters—Limitations—
Exception—Rules. (1) In the case of fire fighters as defined
in RCW 41.26.030(4) (a), (b), and (c) who are covered under
Title 51 RCW and fire fighters, including supervisors,
employed on a full-time, fully compensated basis as a fire
fighter of a private sector employer's fire department that
includes over fifty such fire fighters, there shall exist a prima
facie presumption that: (a) Respiratory disease; (b) heart
problems that are experienced within seventy-two hours of
exposure to smoke, fumes, or toxic substances; (c) cancer;
and (d) infectious diseases are occupational diseases under
RCW 51.08.140. This presumption of occupational disease
may be rebutted by a preponderance of the evidence. Such
evidence may include, but is not limited to, use of tobacco
products, physical fitness and weight, lifestyle, hereditary
factors, and exposure from other employment or nonemployment activities.
(2) The presumptions established in subsection (1) of
this section shall be extended to an applicable member following termination of service for a period of three calendar
months for each year of requisite service, but may not extend
more than sixty months following the last date of employment.
(3) The presumption established in subsection (1)(c) of
this section shall only apply to any active or former fire
fighter who has cancer that develops or manifests itself after
the fire fighter has served at least ten years and who was
given a qualifying medical examination upon becoming a fire
fighter that showed no evidence of cancer. The presumption
within subsection (1)(c) of this section shall only apply to primary brain cancer, malignant melanoma, leukemia, nonHodgkin's lymphoma, bladder cancer, ureter cancer, and kidney cancer.
(4) The presumption established in subsection (1)(d) of
this section shall be extended to any fire fighter who has contracted any of the following infectious diseases: Human
immunodeficiency virus/acquired immunodeficiency syndrome, all strains of hepatitis, meningococcal meningitis, or
mycobacterium tuberculosis.
(5) Beginning July 1, 2003, this section does not apply to
a fire fighter who develops a heart or lung condition and who
is a regular user of tobacco products or who has a history of
tobacco use. The department, using existing medical
research, shall define in rule the extent of tobacco use that
shall exclude a fire fighter from the provisions of this section.
[2002 c 337 § 2; 1987 c 515 § 2.]
Legislative findings—1987 c 515: "The legislature finds that the
employment of fire fighters exposes them to smoke, fumes, and toxic or
chemical substances. The legislature recognizes that fire fighters as a class
have a higher rate of respiratory disease than the general public. The legislature therefore finds that respiratory disease should be presumed to be occu[Title 51 RCW—page 56]
pationally related for industrial insurance purposes for fire fighters." [1987
c 515 § 1.]
51.32.190
51.32.190 Self-insurers—Notice of denial of claim,
reasons—Procedure—Powers and duties of director. (1)
If the self-insurer denies a claim for compensation, written
notice of such denial, clearly informing the claimant of the
reasons therefor and that the director will rule on the matter
shall be mailed or given to the claimant and the director
within thirty days after the self-insurer has notice of the
claim.
(2) Until such time as the department has entered an
order in a disputed case acceptance of compensation by the
claimant shall not be considered a binding determination of
his or her rights under this title. Likewise the payment of
compensation shall not be considered a binding determination of the obligations of the self-insurer as to future compensation payments.
(3) Upon making the first payment of income benefits,
the self-insurer shall immediately notify the director in accordance with a form to be prescribed by the director. Upon
request of the department on a form prescribed by the department, the self-insurer shall submit a record of the payment of
income benefits including initial, termination or terminations, and change or changes to the benefits. Where temporary disability compensation is payable, the first payment
thereof shall be made within fourteen days after notice of
claim and shall continue at regular semimonthly or biweekly
intervals.
(4) If, after the payment of compensation without an
award, the self-insurer elects to controvert the right to compensation, the payment of compensation shall not be considered a binding determination of the obligations of the selfinsurer as to future compensation payments. The acceptance
of compensation by the worker or his or her beneficiaries
shall not be considered a binding determination of their rights
under this title.
(5) The director: (a) May, upon his or her own initiative
at any time in a case in which payments are being made without an award; and (b) shall, upon receipt of information from
any person claiming to be entitled to compensation, from the
self-insurer, or otherwise that the right to compensation is
controverted, or that payment of compensation has been
opposed, stopped or changed, whether or not claim has been
filed, promptly make such inquiry as circumstances require,
cause such medical examinations to be made, hold such hearings, require the submission of further information, make
such orders, decisions or awards, and take such further action
as he or she considers will properly determine the matter and
protect the rights of all parties.
(6) The director, upon his or her own initiative, may
make such inquiry as circumstances require or is necessary to
protect the rights of all the parties and he or she may enact
rules and regulations providing for procedures to ensure fair
and prompt handling by self-insurers of the claims of workers
and beneficiaries. [1996 c 58 § 2; 1982 1st ex.s. c 20 § 3;
1977 ex.s. c 350 § 54; 1972 ex.s. c 43 § 25; 1971 ex.s. c 289
§ 47.]
Effective date—1982 1st ex.s. c 20: See note following RCW
51.32.075.
(2004 Ed.)
Compensation—Right to and Amount
51.32.195 Self-insurers—Information to department.
On any industrial injury claim where the self-insured
employer or injured worker has requested a determination by
the department, the self-insurer must submit all medical
reports and any other specified information not previously
submitted to the department. When the department requests
information from a self-insurer by certified mail, the selfinsurer shall submit all information in its possession concerning a claim within ten working days from the date of receipt
of such certified notice. [1987 c 290 § 1.]
51.32.195
51.32.200 Self-insurers—Enforcement of compensation order against. (1) If a self-insurer fails, refuses, or
neglects to comply with a compensation order which has
become final and is not subject to review or appeal, the director or any person entitled to compensation under the order
may institute proceedings for injunctive or other appropriate
relief for enforcement of the order. These proceedings may
be instituted in the superior court for the county in which the
claimant resides, or, if the claimant is not then a resident of
this state, in the superior court for the county in which the
self-insurer may be served with process.
(2) The court shall enforce obedience to the order by
proper means, enjoining compliance upon the person obligated to comply with the compensation order. The court may
issue such writs and processes as are necessary to carry out its
orders.
(3) A proceeding under this section does not preclude
other methods of enforcement provided for in this title.
[1971 ex.s. c 289 § 48.]
51.32.200
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.32.210 Claims of injured workers, prompt
action—Payment—Acceptance—Effect. Claims of
injured workers of employers who have secured the payment
of compensation by insuring with the department shall be
promptly acted upon by the department. Where temporary
disability compensation is payable, the first payment thereof
shall be mailed within fourteen days after receipt of the claim
at the department's offices in Olympia and shall continue at
regular semimonthly intervals. The payment of this or any
other benefits under this title, prior to the entry of an order by
the department in accordance with RCW 51.52.050 as now or
hereafter amended, shall be not considered a binding determination of the obligations of the department under this title.
The acceptance of compensation by the worker or his or her
beneficiaries prior to such order shall likewise not be considered a binding determination of their rights under this title.
[1977 ex.s. c 350 § 55; 1972 ex.s. c 43 § 26.]
51.32.210
51.32.215
51.32.215 Payment of compensation after appeal—
Enforcement of order—Penalty. (1)(a) If the worker or
beneficiary in a state fund claim prevails in an appeal by any
party to the board or the court, the department shall comply
with the board or court's order with respect to the payment of
compensation within the later of the following time periods:
(i) Sixty days after the compensation order has become
final and is not subject to review or appeal; or
(ii) If the order has become final and is not subject to
review or appeal and the department has, within the period
(2004 Ed.)
51.32.220
specified in (a)(i) of this subsection, requested the filing by
the worker or beneficiary of documents necessary to make
payment of compensation, sixty days after all requested documents are filed with the department.
The department may extend the sixty-day time period for
an additional thirty days for good cause.
(b) If the department fails to comply with (a) of this subsection, any person entitled to compensation under the order
may institute proceedings for injunctive or other appropriate
relief for enforcement of the order. These proceedings may
be instituted in the superior court for the county in which the
claimant resides, or, if the claimant is not then a resident of
this state, in the superior court for Thurston county.
(2) In a proceeding under this section, the court shall
enforce obedience to the order by proper means, enjoining
compliance upon the person obligated to comply with the
compensation order. The court may issue such writs and processes as are necessary to carry out its orders and may award
a penalty of up to one thousand dollars to the person entitled
to compensation under the order.
(3) A proceeding under this section does not preclude
other methods of enforcement provided for in this title.
[1995 c 276 § 1.]
Application—1995 c 276: "This act applies to all appeals in state fund
claims determined under Title 51 RCW on or after July 23, 1995, regardless
of the date of filing of the claim." [1995 c 276 § 2.]
51.32.220
51.32.220 Reduction in total disability compensation—Limitations—Notice—Waiver. (1) For persons
receiving compensation for temporary or permanent total disability pursuant to the provisions of this chapter, such compensation shall be reduced by an amount equal to the benefits
payable under the federal old-age, survivors, and disability
insurance act as now or hereafter amended not to exceed the
amount of the reduction established pursuant to 42 U.S.C.
Sec. 424a. However, such reduction shall not apply when the
combined compensation provided pursuant to this chapter
and the federal old-age, survivors, and disability insurance
act is less than the total benefits to which the federal reduction would apply, pursuant to 42 USC 424a. Where any person described in this section refuses to authorize the release
of information concerning the amount of benefits payable
under said federal act the department's estimate of said
amount shall be deemed to be correct unless and until the
actual amount is established and no adjustment shall be made
for any period of time covered by any such refusal.
(2) Any reduction under subsection (1) of this section
shall be effective the month following the month in which the
department or self-insurer is notified by the federal social
security administration that the person is receiving disability
benefits under the federal old-age, survivors, and disability
insurance act: PROVIDED, That in the event of an overpayment of benefits the department or self-insurer may not
recover more than the overpayments for the six months
immediately preceding the date the department or self-insurer
notifies the worker that an overpayment has occurred: PROVIDED FURTHER, That upon determining that there has
been an overpayment, the department or self-insurer shall
immediately notify the person who received the overpayment
that he or she shall be required to make repayment pursuant
to this section and RCW 51.32.230.
[Title 51 RCW—page 57]
51.32.225
Title 51 RCW: Industrial Insurance
(3) Recovery of any overpayment must be taken from
future temporary or permanent total disability benefits or permanent partial disability benefits provided by this title. In the
case of temporary or permanent total disability benefits, the
recovery shall not exceed twenty-five percent of the monthly
amount due from the department or self-insurer or one-sixth
of the total overpayment, whichever is the lesser.
(4) No reduction may be made unless the worker
receives notice of the reduction prior to the month in which
the reduction is made.
(5) In no event shall the reduction reduce total benefits to
less than the greater amount the worker may be entitled to
under this title or the federal old-age, survivors, and disability
insurance act.
(6) The director, pursuant to rules adopted in accordance
with the procedures provided in the administrative procedure
act, chapter 34.05 RCW, may exercise his or her discretion to
waive, in whole or in part, the amount of any overpayment
where the recovery would be against equity and good conscience.
(7) Subsection (1) of this section applies to:
(a) Workers under the age of sixty-two whose effective
entitlement to total disability compensation begins before
January 2, 1983;
(b) Workers under the age of sixty-five whose effective
entitlement to total disability compensation begins after January 1, 1983; and
(c) Workers who will become sixty-five years of age on
or after June 10, 2004. [2004 c 92 § 1; 1982 c 63 § 19; 1979
ex.s. c 231 § 1; 1979 ex.s. c 151 § 1; 1977 ex.s. c 323 § 19;
1975 1st ex.s. c 286 § 3.]
Effective dates—Implementation—1982 c 63: See note following
RCW 51.32.095.
Applicability—1979 ex.s. c 231: "This 1979 act applies to all cases in
which notification of the first reduction in compensation pursuant to RCW
51.32.220 is mailed after June 15, 1979, regardless of when the basis, authority, or cause for such reduction may have arisen. To such extent, this 1979
act applies retrospectively, but in all other respects it applies prospectively."
[1979 ex.s. c 231 § 2.]
Severability—1979 ex.s. c 231: "If any provision of this 1979 act or its
application to any person or circumstance is held invalid, the remainder of
the act or the application of the provision to other persons or circumstances
is not affected." [1979 ex.s. c 231 § 3.]
Applicability—1979 ex.s. c 151: "This 1979 act applies to all cases in
which notification of the first reduction in compensation pursuant to RCW
51.32.220 is mailed after May 10, 1979, regardless of when the basis, authority, or cause for such reduction may have arisen. To such extent, this 1979
act applies retrospectively, but in all other respects it applies prospectively."
[1979 ex.s. c 151 § 3.]
Severability—1979 ex.s. c 151: "If any provision of this 1979 act or its
application to any person or circumstance is held invalid, the remainder of
the act or the application of the provision to other persons or circumstances
is not affected." [1979 ex.s. c 151 § 4.]
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
51.32.225
51.32.225 Reduction in total disability compensation—Offset for social security retirement benefits. (1)
For persons receiving compensation for temporary or permanent total disability under this title, the compensation shall be
reduced by the department to allow an offset for social security retirement benefits payable under the federal social security, old age survivors, and disability insurance act, 42 U.S.C.
[Title 51 RCW—page 58]
This reduction shall not apply to any worker who is receiving
permanent total disability benefits prior to July 1, 1986.
(2) Reductions for social security retirement benefits
under this section shall comply with the procedures in RCW
51.32.220 (1) through (6), except those that relate to computation, and with any other procedures established by the
department to administer this section.
(3) Any reduction in compensation made under chapter
58, Laws of 1986, shall be made before the reduction established in this section. [1986 c 59 § 5.]
Effective date—1986 c 59 § 5: See note following RCW 51.32.090.
51.32.230
51.32.230 Recovery of overpayments. Notwithstanding any other provisions of law, any overpayments previously
recovered under the provisions of RCW 51.32.220 as now or
hereafter amended shall be limited to six months' overpayments. Where greater recovery has already been made, the
director, in his discretion, may make restitution in those cases
where an extraordinary hardship has been created. [1979
ex.s. c 151 § 2.]
Applicability—Severability—1979 ex.s. c 151: See notes following
RCW 51.32.220.
51.32.240
51.32.240 Erroneous payments—Payments induced
by willful misrepresentation—Adjustment for selfinsurer's failure to pay benefits—Penalty—Appeal—
Enforcement of orders. (1)(a) Whenever any payment of
benefits under this title is made because of clerical error, mistake of identity, innocent misrepresentation by or on behalf of
the recipient thereof mistakenly acted upon, or any other circumstance of a similar nature, all not induced by willful misrepresentation, the recipient thereof shall repay it and recoupment may be made from any future payments due to the
recipient on any claim with the state fund or self-insurer, as
the case may be. The department or self-insurer, as the case
may be, must make claim for such repayment or recoupment
within one year of the making of any such payment or it will
be deemed any claim therefor has been waived.
(b) Except as provided in subsections (3), (4), and (5) of
this section, the department may only assess an overpayment
of benefits because of adjudicator error when the order upon
which the overpayment is based is not yet final as provided in
RCW 51.52.050 and 51.52.060. "Adjudicator error" includes
the failure to consider information in the claim file, failure to
secure adequate information, or an error in judgment.
(c) The director, pursuant to rules adopted in accordance
with the procedures provided in the administrative procedure
act, chapter 34.05 RCW, may exercise his discretion to
waive, in whole or in part, the amount of any such timely
claim where the recovery would be against equity and good
conscience.
(2) Whenever the department or self-insurer fails to pay
benefits because of clerical error, mistake of identity, or innocent misrepresentation, all not induced by recipient willful
misrepresentation, the recipient may request an adjustment of
benefits to be paid from the state fund or by the self-insurer,
as the case may be, subject to the following:
(a) The recipient must request an adjustment in benefits
within one year from the date of the incorrect payment or it
will be deemed any claim therefore has been waived.
(2004 Ed.)
Compensation—Right to and Amount
(b) The recipient may not seek an adjustment of benefits
because of adjudicator error. Adjustments due to adjudicator
error are addressed by the filing of a written request for
reconsideration with the department of labor and industries or
an appeal with the board of industrial insurance appeals
within sixty days from the date the order is communicated as
provided in RCW 51.52.050. "Adjudicator error" includes
the failure to consider information in the claim file, failure to
secure adequate information, or an error in judgment.
(3) Whenever the department issues an order rejecting a
claim for benefits paid pursuant to RCW 51.32.190 or
51.32.210, after payment for temporary disability benefits
h a s b e e n p a i d b y a sel f - in su r e r p u r su a n t to R CW
51.32.190(3) or by the department pursuant to RCW
51.32.210, the recipient thereof shall repay such benefits and
recoupment may be made from any future payments due to
the recipient on any claim with the state fund or self-insurer,
as the case may be. The director, under rules adopted in
accordance with the procedures provided in the administrative procedure act, chapter 34.05 RCW, may exercise discretion to waive, in whole or in part, the amount of any such payments where the recovery would be against equity and good
conscience.
(4) Whenever any payment of benefits under this title
has been made pursuant to an adjudication by the department
or by order of the board or any court and timely appeal therefrom has been made where the final decision is that any such
payment was made pursuant to an erroneous adjudication, the
recipient thereof shall repay it and recoupment may be made
from any future payments due to the recipient on any claim
with the state fund or self-insurer, as the case may be. The
director, pursuant to rules adopted in accordance with the
procedures provided in the administrative procedure act,
chapter 34.05 RCW, may exercise his discretion to waive, in
whole or in part, the amount of any such payments where the
recovery would be against equity and good conscience.
(5)(a) Whenever any payment of benefits under this title
has been induced by willful misrepresentation the recipient
thereof shall repay any such payment together with a penalty
of fifty percent of the total of any such payments and the
amount of such total sum may be recouped from any future
payments due to the recipient on any claim with the state fund
or self-insurer against whom the willful misrepresentation
was committed, as the case may be, and the amount of such
penalty shall be placed in the supplemental pension fund.
Such repayment or recoupment must be demanded or ordered
within three years of the discovery of the willful misrepresentation.
(b) For purposes of this subsection (5), it is willful misrepresentation for a person to obtain payments or other benefits under this title in an amount greater than that to which the
person otherwise would be entitled. Willful misrepresentation includes:
(i) Willful false statement; or
(ii) Willful misrepresentation, omission, or concealment
of any material fact.
(c) For purposes of this subsection (5), "willful" means a
conscious or deliberate false statement, misrepresentation,
omission, or concealment of a material fact with the specific
intent of obtaining, continuing, or increasing benefits under
this title.
(2004 Ed.)
51.32.240
(d) For purposes of this subsection (5), failure to disclose
a work-type activity must be willful in order for a misrepresentation to have occurred.
(e) For purposes of this subsection (5), a material fact is
one which would result in additional, increased, or continued
benefits, including but not limited to facts about physical
restrictions, or work-type activities which either result in
wages or income or would be reasonably expected to do so.
Wages or income include the receipt of any goods or services. For a work-type activity to be reasonably expected to
result in wages or income, a pattern of repeated activity must
exist. For those activities that would reasonably be expected
to result in wages or produce income, but for which actual
wage or income information cannot be reasonably determined, the department shall impute wages pursuant to RCW
51.08.178(4).
(6) The worker, beneficiary, or other person affected
thereby shall have the right to contest an order assessing an
overpayment pursuant to this section in the same manner and
to the same extent as provided under RCW 51.52.050 and
51.52.060. In the event such an order becomes final under
chapter 51.52 RCW and notwithstanding the provisions of
subsections (1) through (5) of this section, the director, director's designee, or self-insurer may file with the clerk in any
county within the state a warrant in the amount of the sum
representing the unpaid overpayment and/or penalty plus
interest accruing from the date the order became final. The
clerk of the county in which the warrant is filed shall immediately designate a superior court cause number for such warrant and the clerk shall cause to be entered in the judgment
docket under the superior court cause number assigned to the
warrant, the name of the worker, beneficiary, or other person
mentioned in the warrant, the amount of the unpaid overpayment and/or penalty plus interest accrued, and the date the
warrant was filed. The amount of the warrant as docketed
shall become a lien upon the title to and interest in all real and
personal property of the worker, beneficiary, or other person
against whom the warrant is issued, the same as a judgment
in a civil case docketed in the office of such clerk. The sheriff
shall then proceed in the same manner and with like effect as
prescribed by law with respect to execution or other process
issued against rights or property upon judgment in the superior court. Such warrant so docketed shall be sufficient to
support the issuance of writs of garnishment in favor of the
department or self-insurer in the manner provided by law in
the case of judgment, wholly or partially unsatisfied. The
clerk of the court shall be entitled to a filing fee under RCW
36.18.012(10), which shall be added to the amount of the
warrant. A copy of such warrant shall be mailed to the
worker, beneficiary, or other person within three days of filing with the clerk.
The director, director's designee, or self-insurer may
issue to any person, firm, corporation, municipal corporation,
political subdivision of the state, public corporation, or
agency of the state, a notice to withhold and deliver property
of any kind if there is reason to believe that there is in the possession of such person, firm, corporation, municipal corporation, political subdivision of the state, public corporation, or
agency of the state, property that is due, owing, or belonging
to any worker, beneficiary, or other person upon whom a
warrant has been served for payments due the department or
[Title 51 RCW—page 59]
51.32.250
Title 51 RCW: Industrial Insurance
self-insurer. The notice and order to withhold and deliver
shall be served by certified mail accompanied by an affidavit
of service by mailing or served by the sheriff of the county, or
by the sheriff's deputy, or by any authorized representative of
the director, director's designee, or self-insurer. Any person,
firm, corporation, municipal corporation, political subdivision of the state, public corporation, or agency of the state
upon whom service has been made shall answer the notice
within twenty days exclusive of the day of service, under oath
and in writing, and shall make true answers to the matters
inquired or in the notice and order to withhold and deliver. In
the event there is in the possession of the party named and
served with such notice and order, any property that may be
subject to the claim of the department or self-insurer, such
property shall be delivered forthwith to the director, the
director's authorized representative, or self-insurer upon
demand. If the party served and named in the notice and
order fails to answer the notice and order within the time prescribed in this section, the court may, after the time to answer
such order has expired, render judgment by default against
the party named in the notice for the full amount, plus costs,
claimed by the director, director's designee, or self-insurer in
the notice. In the event that a notice to withhold and deliver
is served upon an employer and the property found to be subject thereto is wages, the employer may assert in the answer
all exemptions provided for by chapter 6.27 RCW to which
the wage earner may be entitled.
This subsection shall only apply to orders assessing an
overpayment which are issued on or after July 28, 1991:
PROVIDED, That this subsection shall apply retroactively to
all orders assessing an overpayment resulting from fraud,
civil or criminal.
(7) Orders assessing an overpayment which are issued on
or after July 28, 1991, shall include a conspicuous notice of
the collection methods available to the department or selfinsurer. [2004 c 243 § 7; 2001 c 146 § 10. Prior: 1999 c 396
§ 1; 1999 c 119 § 1; 1991 c 88 § 1; 1986 c 54 § 1; 1975 1st
ex.s. c 224 § 13.]
Application—2004 c 243 § 7: "Section 7 of this act applies to willful
misrepresentation determinations issued on or after July 1, 2004." [2004 c
243 § 9.]
Adoption of rules—2004 c 243: See note following RCW 51.08.177.
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
51.32.250
51.32.250 Payment of job modification costs. Modification of the injured worker's previous job or modification of
a new job is recognized as a desirable method of returning the
injured worker to gainful employment. In order to assist
employers in meeting the costs of job modification, and to
encourage employers to modify jobs to accommodate retaining or hiring workers with disabilities resulting from workrelated injury, the supervisor or the supervisor's designee, in
his or her discretion, may pay job modification costs in an
amount not to exceed five thousand dollars per worker per
job modification. This payment is intended to be a cooperative participation with the employer and funds shall be taken
from the appropriate account within the second injury fund.
The benefits provided for in this section are available to
any otherwise eligible worker regardless of the date of industrial injury. [1988 c 161 § 10; 1983 c 70 § 3; 1982 c 63 § 13.]
[Title 51 RCW—page 60]
Severability—1983 c 70: See note following RCW 51.32.095.
Effective dates—Implementation—1982 c 63: See note following
RCW 51.32.095.
51.32.260
51.32.260 Compensation for loss or damage to personal effects. Workers otherwise entitled to compensation
under this title may also claim compensation for loss of or
damage to the worker's personal clothing, footwear or protective equipment resulting from the industrial accident or
incurred in the course of emergency medical treatment for
injuries. [1983 c 111 § 1.]
51.32.300
51.32.300 State employee vocational rehabilitation
coordinator. The director shall appoint a state employee
vocational rehabilitation coordinator who shall provide technical assistance and coordination of claims management to
state agencies and institutions of higher education under the
state return-to-work programs created by RCW 41.06.490
and *28B.16.300. [1990 c 204 § 5.]
*Reviser's note: RCW 28B.16.300 was repealed by 1993 c 281 § 68,
effective July 1, 1993.
Findings—Purpose—1990 c 204: See note following RCW
51.44.170.
51.32.350
51.32.350 Chemically related illness—Criteria and
procedures for claims—Claims management. (1) By July
1, 1994, the department shall establish interim criteria and
procedures for management of claims involving chemically
related illness to ensure consistency and fairness in the adjudication of these claims. The criteria and procedures shall
apply to employees covered by the state fund and employees
of self-insured employers. The department shall adopt final
criteria and procedures by December 31, 1994, and report the
criteria and procedures as required under section 5, chapter
265, Laws of 1994.
(2) The special procedures developed by the department
shall include procedures to determine which claims involving
chemically related illness require expert management. The
department shall assign claims managers with special training or expertise to manage these claims. [1994 c 265 § 1.]
51.32.360
51.32.360 Chemically related illness—Centers for
research and clinical assessment. The department shall
work with the department of health to establish one or more
centers for research and clinical assessment of chemically
related illness. [1994 c 265 § 3.]
51.32.370
51.32.370 Chemically related illness—Research
projects—Implementation plan—Funding—Deductions
from employees' pay. (1) The department shall conduct
research on chemically related illnesses, which shall include
contracting with recognized medical research institutions.
The department shall develop an implementation plan for
research based on sound scientific research criteria, such as
double blind studies, and shall include adequate provisions
for peer review, and submit the plan to the worker's [workers'] compensation advisory committee for review and
approval. Following approval of the plan, all specific proposals for projects under the plan shall be submitted for review to
a scientific advisory committee, established to provide scientific oversight of research projects, and to the workers' com(2004 Ed.)
Medical Aid
pensation advisory committee. The department shall include
a research project that encourages regional cooperation in
addressing chemically related illness.
(2) Expenditures for research projects shall be within
legislative appropriations from the medical aid fund, with
self-insured employers and the state fund each paying a pro
rata share, based on the number of worker hours, of the
authorized expenditures. For the purposes of this subsection
only, self-insured employers may deduct from the pay of
each of their employees one-half of the share charged to the
employer for the expenditures from the medical aid fund.
[1994 c 265 § 4.]
51.32.380 Injured offenders—Benefits sent in the
care of the department of corrections—Exception—Liability. If the department of labor and industries has received
notice that an injured worker entitled to benefits payable
under this chapter is in the custody of the department of corrections pursuant to a conviction and sentence, the department shall send all such benefits to the worker in care of the
department of corrections, except those benefits payable to a
beneficiary as provided in RCW 51.32.040 (3)(c) and (4).
Failure of the department to send such benefits to the department of corrections shall not result in liability to any party for
either department. [2003 c 379 § 26.]
51.32.380
Severability—Effective dates—2003 c 379: See notes following
RCW 9.94A.728.
Intent—Purpose—2003 c 379 §§ 13-27: See note following RCW
9.94A.760.
Chapter 51.36
Chapter 51.36 RCW
MEDICAL AID
Sections
51.36.010
51.36.015
51.36.017
51.36.020
51.36.030
51.36.040
51.36.050
51.36.060
51.36.070
51.36.080
51.36.085
51.36.090
51.36.100
51.36.110
51.36.120
51.36.130
51.36.010
Extent and duration.
Chiropractic care and evaluation.
Licensed advanced registered nurse practitioners.
Transportation to treatment—Artificial substitutes and
mechanical aids—Modifications to residences or motor
vehicles.
First aid.
Time and place of coverage—Lunch period.
Rehabilitation center—Contracts with self-insurers and others.
Duties of attending physician or licensed advanced registered
nurse practitioner—Medical information.
Medical examination—Reports—Costs.
Payment of fees and medical charges by department—Interest—Cost-effective payment methods—Audits.
Payment of fees and medical charges by self-insurers—Interest.
Review of billings—Investigation of unauthorized services.
Audits of health care providers authorized.
Audits of health care providers—Powers of department.
Confidential information.
False, misleading, or deceptive advertising or representations.
51.36.010 Extent and duration. (Expires June 30,
2007.) Upon the occurrence of any injury to a worker entitled
to compensation under the provisions of this title, he or she
shall receive proper and necessary medical and surgical services at the hands of a physician or licensed advanced registered nurse practitioner of his or her own choice, if conveniently located, and proper and necessary hospital care and
services during the period of his or her disability from such
injury, but the same shall be limited in point of duration as
follows:
(2004 Ed.)
51.36.010
In the case of permanent partial disability, not to extend
beyond the date when compensation shall be awarded him or
her, except when the worker returned to work before permanent partial disability award is made, in such case not to
extend beyond the time when monthly allowances to him or
her shall cease; in case of temporary disability not to extend
beyond the time when monthly allowances to him or her shall
cease: PROVIDED, That after any injured worker has
returned to his or her work his or her medical and surgical
treatment may be continued if, and so long as, such continuation is deemed necessary by the supervisor of industrial
insurance to be necessary to his or her more complete recovery; in case of a permanent total disability not to extend
beyond the date on which a lump sum settlement is made
with him or her or he or she is placed upon the permanent
pension roll: PROVIDED, HOWEVER, That the supervisor
of industrial insurance, solely in his or her discretion, may
authorize continued medical and surgical treatment for conditions previously accepted by the department when such medical and surgical treatment is deemed necessary by the supervisor of industrial insurance to protect such worker's life or
provide for the administration of medical and therapeutic
measures including payment of prescription medications, but
not including those controlled substances currently scheduled
by the state board of pharmacy as Schedule I, II, III, or IV
substances under chapter 69.50 RCW, which are necessary to
alleviate continuing pain which results from the industrial
injury. In order to authorize such continued treatment the
written order of the supervisor of industrial insurance issued
in advance of the continuation shall be necessary.
The supervisor of industrial insurance, the supervisor's
designee, or a self-insurer, in his or her sole discretion, may
authorize inoculation or other immunological treatment in
cases in which a work-related activity has resulted in probable exposure of the worker to a potential infectious occupational disease. Authorization of such treatment does not bind
the department or self-insurer in any adjudication of a claim
by the same worker or the worker's beneficiary for an occupational disease. [2004 c 65 § 11; 1986 c 58 § 6; 1977 ex.s. c
350 § 56; 1975 1st ex.s. c 234 § 1; 1971 ex.s. c 289 § 50; 1965
ex.s. c 166 § 2; 1961 c 23 § 51.36.010. Prior: 1959 c 256 §
2; prior: 1943 c 186 § 2, part; 1923 c 136 § 9, part; 1921 c
182 § 11, part; 1919 c 129 § 2, part; 1917 c 28 § 5, part; Rem.
Supp. 1943 § 7714, part.]
Report to legislature—Effective date—Expiration date—Severability—2004 c 65: See notes following RCW 51.04.030.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.36.010
51.36.010 Extent and duration. (Effective June 30,
2007.) Upon the occurrence of any injury to a worker entitled
to compensation under the provisions of this title, he or she
shall receive proper and necessary medical and surgical services at the hands of a physician of his or her own choice, if
conveniently located, and proper and necessary hospital care
and services during the period of his or her disability from
such injury, but the same shall be limited in point of duration
as follows:
In the case of permanent partial disability, not to extend
beyond the date when compensation shall be awarded him or
her, except when the worker returned to work before perma[Title 51 RCW—page 61]
51.36.015
Title 51 RCW: Industrial Insurance
nent partial disability award is made, in such case not to
extend beyond the time when monthly allowances to him or
her shall cease; in case of temporary disability not to extend
beyond the time when monthly allowances to him or her shall
cease: PROVIDED, That after any injured worker has
returned to his or her work his or her medical and surgical
treatment may be continued if, and so long as, such continuation is deemed necessary by the supervisor of industrial
insurance to be necessary to his or her more complete recovery; in case of a permanent total disability not to extend
beyond the date on which a lump sum settlement is made
with him or her or he or she is placed upon the permanent
pension roll: PROVIDED, HOWEVER, That the supervisor
of industrial insurance, solely in his or her discretion, may
authorize continued medical and surgical treatment for conditions previously accepted by the department when such medical and surgical treatment is deemed necessary by the supervisor of industrial insurance to protect such worker's life or
provide for the administration of medical and therapeutic
measures including payment of prescription medications, but
not including those controlled substances currently scheduled
by the state board of pharmacy as Schedule I, II, III, or IV
substances under chapter 69.50 RCW, which are necessary to
alleviate continuing pain which results from the industrial
injury. In order to authorize such continued treatment the
written order of the supervisor of industrial insurance issued
in advance of the continuation shall be necessary.
The supervisor of industrial insurance, the supervisor's
designee, or a self-insurer, in his or her sole discretion, may
authorize inoculation or other immunological treatment in
cases in which a work-related activity has resulted in probable exposure of the worker to a potential infectious occupational disease. Authorization of such treatment does not bind
the department or self-insurer in any adjudication of a claim
by the same worker or the worker's beneficiary for an occupational disease. [1986 c 58 § 6; 1977 ex.s. c 350 § 56; 1975
1st ex.s. c 234 § 1; 1971 ex.s. c 289 § 50; 1965 ex.s. c 166 §
2; 1961 c 23 § 51.36.010. Prior: 1959 c 256 § 2; prior: 1943
c 186 § 2, part; 1923 c 136 § 9, part; 1921 c 182 § 11, part;
1919 c 129 § 2, part; 1917 c 28 § 5, part; Rem. Supp. 1943 §
7714, part.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.36.015
51.36.015 Chiropractic care and evaluation. Subject
to the other provisions of this title, the health services that are
available to an injured worker under RCW 51.36.010 include
chiropractic care and evaluation. For the purposes of assisting
the department in making claims determinations, an injured
worker may be required by the department to undergo examination by a chiropractor licensed under chapter 18.25 RCW.
[1994 c 94 § 1.]
51.36.017
51.36.017 Licensed advanced registered nurse practitioners. (Expires June 30, 2007.) Licensed advanced registered nurse practitioners are recognized as independent
practitioners and, subject to the provisions of this title, the
health services available to an injured worker under RCW
51.36.010 include health services provided by licensed
advanced registered nurse practitioners within their scope of
practice. [2004 c 65 § 16.]
[Title 51 RCW—page 62]
Report to legislature—Effective date—Expiration date—Severability—2004 c 65: See notes following RCW 51.04.030.
51.36.020
51.36.020 Transportation to treatment—Artificial
substitutes and mechanical aids—Modifications to residences or motor vehicles. (1) When the injury to any
worker is so serious as to require his or her being taken from
the place of injury to a place of treatment, his or her employer
shall, at the expense of the medical aid fund, or self-insurer,
as the case may be, furnish transportation to the nearest place
of proper treatment.
(2) Every worker whose injury results in the loss of one
or more limbs or eyes shall be provided with proper artificial
substitutes and every worker, who suffers an injury to an eye
producing an error of refraction, shall be once provided
proper and properly equipped lenses to correct such error of
refraction and his or her disability rating shall be based upon
the loss of sight before correction.
(3) Every worker whose accident results in damage to or
destruction of an artificial limb, eye, or tooth, shall have same
repaired or replaced.
(4) Every worker whose hearing aid or eyeglasses or
lenses are damaged, destroyed, or lost as a result of an industrial accident shall have the same restored or replaced. The
department or self-insurer shall be liable only for the cost of
restoring damaged hearing aids or eyeglasses to their condition at the time of the accident.
(5) All mechanical appliances necessary in the treatment
of an injured worker, such as braces, belts, casts, and
crutches, shall be provided and all mechanical appliances
required as permanent equipment after treatment has been
completed shall continue to be provided or replaced without
regard to the date of injury or date treatment was completed,
notwithstanding any other provision of law.
(6) A worker, whose injury is of such short duration as to
bring him or her within the time limit provisions of RCW
51.32.090, shall nevertheless receive during the omitted
period medical, surgical, and hospital care and service and
transportation under the provisions of this chapter.
(7) Whenever in the sole discretion of the supervisor it is
reasonable and necessary to provide residence modifications
necessary to meet the needs and requirements of the worker
who has sustained catastrophic injury, the department or selfinsurer may be ordered to pay an amount not to exceed the
state's average annual wage for one year as determined under
RCW 50.04.355, as now existing or hereafter amended,
toward the cost of such modifications or construction. Such
payment shall only be made for the construction or modification of a residence in which the injured worker resides. Only
one residence of any worker may be modified or constructed
under this subsection, although the supervisor may order
more than one payment for any one home, up to the maximum amount permitted by this section.
(8)(a) Whenever in the sole discretion of the supervisor
it is reasonable and necessary to modify a motor vehicle
owned by a worker who has become an amputee or becomes
paralyzed because of an industrial injury, the supervisor may
order up to fifty percent of the state's average annual wage for
one year, as determined under RCW 50.04.355, to be paid by
the department or self-insurer toward the costs thereof.
(2004 Ed.)
Medical Aid
(b) In the sole discretion of the supervisor after his or her
review, the amount paid under this subsection may be
increased by no more than four thousand dollars by written
order of the supervisor.
(9) The benefits provided by subsections (7) and (8) of
this section are available to any otherwise eligible worker
regardless of the date of industrial injury. [1999 c 395 § 1;
1982 c 63 § 12; 1977 ex.s. c 350 § 57; 1975 1st ex.s. c 224 §
14; 1971 ex.s. c 289 § 51; 1965 ex.s. c 166 § 3; 1961 c 23 §
51.36.020. Prior: 1959 c 256 § 3; prior: 1951 c 236 § 6; 1943
c 186 § 2, part; 1923 c 136 § 9, part; 1921 c 182 § 11, part;
1919 c 129 § 2, part; 1917 c 28 § 5, part; Rem. Supp. 1943 §
7714, part.]
Effective dates—Implementation—1982 c 63: See note following
RCW 51.32.095.
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.36.030
51.36.030 First aid. Every employer, who employs
workers, shall keep as required by the department's rules a
first aid kit or kits equipped as required by such rules with
materials for first aid to his or her injured workers. Every
employer who employs fifty or more workers, shall keep one
first aid station equipped as required by the department's
rules with materials for first aid to his or her injured workers,
and shall cooperate with the department in training one or
more employees in first aid to the injured. The maintenance
of such first aid kits and stations shall be deemed to be a part
of any safety and health standards established under Title 49
RCW. [1980 c 14 § 12. Prior: 1977 ex.s. c 350 § 58; 1977
ex.s. c 323 § 20; 1961 c 23 § 51.36.030; prior: 1959 c 256 §
4; prior: 1943 c 186 § 2, part; 1923 c 136 § 9, part; 1921 c
182 § 11, part; 1919 c 129 § 2, part; 1917 c 28 § 5, part; Rem.
Supp. 1943 § 7714, part.]
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
51.36.040
51.36.040 Time and place of coverage—Lunch
period. The benefits of Title 51 RCW shall be provided to
each worker receiving an injury, as defined therein, during
the course of his or her employment and also during his or her
lunch period as established by the employer while on the jobsite. The jobsite shall consist of the premises as are occupied,
used or contracted for by the employer for the business of
work process in which the employer is then engaged: PROVIDED, That if a worker by reason of his or her employment
leaves such jobsite under the direction, control or request of
the employer and if such worker is injured during his or her
lunch period while so away from the jobsite, the worker shall
receive the benefits as provided herein: AND PROVIDED
FURTHER, That the employer need not consider the lunch
period in worker hours for the purpose of reporting to the
department unless the worker is actually paid for such period
of time. [1977 ex.s. c 350 § 59; 1961 c 107 § 2.]
51.36.050
51.36.050 Rehabilitation center—Contracts with
self-insurers and others. The department may operate and
control a rehabilitation center and may contract with selfinsurers, and any other persons who may be interested, for
(2004 Ed.)
51.36.070
use of any such center on such terms as the director deems
reasonable. [1979 ex.s. c 42 § 1; 1971 ex.s. c 289 § 52.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.36.060
51.36.060 Duties of attending physician or licensed
advanced registered nurse practitioner—Medical information. (Expires June 30, 2007.) Physicians or licensed
advanced registered nurse practitioners examining or attending injured workers under this title shall comply with rules
and regulations adopted by the director, and shall make such
reports as may be requested by the department or self-insurer
upon the condition or treatment of any such worker, or upon
any other matters concerning such workers in their care.
Except under RCW 49.17.210 and 49.17.250, all medical
information in the possession or control of any person and
relevant to the particular injury in the opinion of the department pertaining to any worker whose injury or occupational
disease is the basis of a claim under this title shall be made
available at any stage of the proceedings to the employer, the
claimant's representative, and the department upon request,
and no person shall incur any legal liability by reason of
releasing such information. [2004 c 65 § 12; 1991 c 89 § 3;
1989 c 12 § 17; 1975 1st ex.s. c 224 § 15; 1971 ex.s. c 289 §
53.]
Report to legislature—Effective date—Expiration date—Severability—2004 c 65: See notes following RCW 51.04.030.
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.36.060
51.36.060 Duties of attending physician—Medical
information. (Effective June 30, 2007.) Physicians examining or attending injured workers under this title shall comply with rules and regulations adopted by the director, and
shall make such reports as may be requested by the department or self-insurer upon the condition or treatment of any
such worker, or upon any other matters concerning such
workers in their care. Except under RCW 49.17.210 and
49.17.250, all medical information in the possession or control of any person and relevant to the particular injury in the
opinion of the department pertaining to any worker whose
injury or occupational disease is the basis of a claim under
this title shall be made available at any stage of the proceedings to the employer, the claimant's representative, and the
department upon request, and no person shall incur any legal
liability by reason of releasing such information. [1991 c 89
§ 3; 1989 c 12 § 17; 1975 1st ex.s. c 224 § 15; 1971 ex.s. c
289 § 53.]
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.36.070
51.36.070 Medical examination—Reports—Costs.
Whenever the director or the self-insurer deems it necessary
in order to resolve any medical issue, a worker shall submit to
examination by a physician or physicians selected by the
director, with the rendition of a report to the person ordering
the examination. The department or self-insurer shall provide
[Title 51 RCW—page 63]
51.36.080
Title 51 RCW: Industrial Insurance
the physician performing an examination with all relevant
medical records from the worker's claim file. The director, in
his or her discretion, may charge the cost of such examination
or examinations to the self-insurer or to the medical aid fund
as the case may be. The cost of said examination shall include
payment to the worker of reasonable expenses connected
therewith. [2001 c 152 § 2; 1977 ex.s. c 350 § 60; 1971 ex.s.
c 289 § 54.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.36.080
51.36.080 Payment of fees and medical charges by
department—Interest—Cost-effective payment methods—Audits. (1) All fees and medical charges under this
title shall conform to the fee schedule established by the
director and shall be paid within sixty days of receipt by the
department of a proper billing in the form prescribed by
department rule or sixty days after the claim is allowed by
final order or judgment, if an otherwise proper billing is
received by the department prior to final adjudication of
claim allowance. The department shall pay interest at the rate
of one percent per month, but at least one dollar per month,
whenever the payment period exceeds the applicable sixtyday period on all proper fees and medical charges.
Beginning in fiscal year 1987, interest payments under
this subsection may be paid only from funds appropriated to
the department for administrative purposes.
Nothing in this section may be construed to require the
payment of interest on any billing, fee, or charge if the industrial insurance claim on which the billing, fee, or charge is
predicated is ultimately rejected or the billing, fee, or charge
is otherwise not allowable.
In establishing fees for medical and other health care services, the director shall consider the director's duty to purchase health care in a prudent, cost-effective manner without
unduly restricting access to necessary care by persons entitled to the care. With respect to workers admitted as hospital
inpatients on or after July 1, 1987, the director shall pay for
inpatient hospital services on the basis of diagnosis-related
groups, contracting for services, or other prudent, cost-effective payment method, which the director shall establish by
rules adopted in accordance with chapter 34.05 RCW.
(2) The director may establish procedures for selectively
or randomly auditing the accuracy of fees and medical billings submitted to the department under this title. [1998 c 245
§ 104; 1993 c 159 § 2; 1987 c 470 § 1; 1985 c 368 § 2; 1985
c 338 § 1; 1971 ex.s. c 289 § 55.]
Effective date—1987 c 470 § 1: "Section 1 of this act is necessary for
the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take
effect on July 1, 1987." [1987 c 470 § 4.]
Effective date—1985 c 368 § 2: "Section 2 of this act shall take effect
July 1, 1987." [1985 c 368 § 7.]
Legislative findings—1985 c 368: "The legislature finds that:
(1) The governor's steering committee on the six-year state health care
purchasing plan has estimated that health care expenditures by the department of labor and industries will rise from $172.5 million in fiscal year 1985
to $581.5 million in fiscal year 1991, an increase of two hundred thirty-seven
percent in six years, while the number of persons receiving the care will rise
only fifteen percent in the same period;
(2) The growing cost of health care for covered workers is a major
cause of recent industrial insurance premium increases, adversely affecting
both employers and employees;
[Title 51 RCW—page 64]
(3) The department of labor and industries has not developed adequate
means of controlling the costs of health care services to which covered workers are entitled by law;
(4) There is a need for all agencies of the state to act as prudent buyers
in purchasing health care." [1985 c 368 § 1.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.36.085
51.36.085 Payment of fees and medical charges by
self-insurers—Interest. All fees and medical charges under
this title shall conform to regulations promulgated, and the
fee schedule established by the director and shall be paid
within sixty days of receipt by the self-insured of a proper
billing in the form prescribed by department rule or sixty
days after the claim is allowed by final order or judgment, if
an otherwise proper billing is received by the self-insured
prior to final adjudication of claim allowance. The selfinsured shall pay interest at the rate of one percent per month,
but at least one dollar per month, whenever the payment
period exceeds the applicable sixty-day period on all proper
fees and medical charges. [1993 c 159 § 3; 1987 c 316 § 4.]
51.36.090
51.36.090 Review of billings—Investigation of unauthorized services. An employer may request review of billings for any medical and surgical services received by a
worker by submitting written notice to the department. The
department shall investigate the billings and determine
whether the worker received services authorized under this
title. Whenever such medical or surgical services are determined to be unauthorized, the department shall not charge the
costs of such services to the employer's account. [1985 c 337
§ 3.]
51.36.100
51.36.100 Audits of health care providers authorized.
The legislature finds and declares it to be in the public interest of the residents of the state of Washington that a proper
regulatory and inspection program be instituted in connection
with the provision of medical, chiropractic, dental, vocational, and other health services to industrially injured workers pursuant to Title 51 RCW. In order to effectively accomplish such purpose and to assure that the industrially injured
worker receives such services as are paid for by the state of
Washington, the acceptance by the industrially injured
worker of such services, and the request by a provider of services for reimbursement for providing such services, shall
authorize the director of the department of labor and industries or the director's authorized representative to inspect and
audit all records in connection with the provision of such services. [1993 c 515 § 5; 1986 c 200 § 1.]
51.36.110
51.36.110 Audits of health care providers—Powers
of department. (Expires June 30, 2007.) The director of
the department of labor and industries or the director's authorized representative shall have the authority to:
(1) Conduct audits and investigations of providers of
medical, chiropractic, dental, vocational, and other health
services furnished to industrially injured workers pursuant to
Title 51 RCW. In the conduct of such audits or investigations, the director or the director's authorized representatives
may examine all records, or portions thereof, including
patient records, for which services were rendered by a health
(2004 Ed.)
Funds
services provider and reimbursed by the department, notwithstanding the provisions of any other statute which may make
or purport to make such records privileged or confidential:
PROVIDED, That no original patient records shall be
removed from the premises of the health services provider,
and that the disclosure of any records or information obtained
under authority of this section by the department of labor and
industries is prohibited and constitutes a violation of RCW
42.52.050, unless such disclosure is directly connected to the
official duties of the department: AND PROVIDED FURTHER, That the disclosure of patient information as required
under this section shall not subject any physician, licensed
advanced registered nurse practitioner, or other health services provider to any liability for breach of any confidential
relationships between the provider and the patient: AND
PROVIDED FURTHER, That the director or the director's
authorized representative shall destroy all copies of patient
medical records in their possession upon completion of the
audit, investigation, or proceedings;
(2) Approve or deny applications to participate as a provider of services furnished to industrially injured workers
pursuant to Title 51 RCW;
(3) Terminate or suspend eligibility to participate as a
provider of services furnished to industrially injured workers
pursuant to Title 51 RCW; and
(4) Pursue collection of unpaid overpayments and/or
penalties plus interest accrued from health care providers
pursuant to RCW 51.32.240(6). [2004 c 243 § 6; 2004 c 65 §
13; 1994 c 154 § 312; 1993 c 515 § 6; 1986 c 200 § 2.]
Reviser's note: This section was amended by 2004 c 65 § 13 and by
2004 c 243 § 6, each without reference to the other. Both amendments are
incorporated in the publication of this section under RCW 1.12.025(2). For
rule of construction, see RCW 1.12.025(1).
Adoption of rules—2004 c 243: See note following RCW 51.08.177.
Report to legislature—Effective date—Expiration date—Severability—2004 c 65: See notes following RCW 51.04.030.
Parts and captions not law—Effective date—Severability—1994 c
154: See RCW 42.52.902, 42.52.904, and 42.52.905.
51.36.110
51.36.110 Audits of health care providers—Powers
of department. (Effective June 30, 2007.) The director of
the department of labor and industries or the director's authorized representative shall have the authority to:
(1) Conduct audits and investigations of providers of
medical, chiropractic, dental, vocational, and other health
services furnished to industrially injured workers pursuant to
Title 51 RCW. In the conduct of such audits or investigations, the director or the director's authorized representatives
may examine all records, or portions thereof, including
patient records, for which services were rendered by a health
services provider and reimbursed by the department, notwithstanding the provisions of any other statute which may make
or purport to make such records privileged or confidential:
PROVIDED, That no original patient records shall be
removed from the premises of the health services provider,
and that the disclosure of any records or information obtained
under authority of this section by the department of labor and
industries is prohibited and constitutes a violation of RCW
42.52.050, unless such disclosure is directly connected to the
official duties of the department: AND PROVIDED FURTHER, That the disclosure of patient information as required
(2004 Ed.)
Chapter 51.44
under this section shall not subject any physician or other
health services provider to any liability for breach of any confidential relationships between the provider and the patient:
AND PROVIDED FURTHER, That the director or the director's authorized representative shall destroy all copies of
patient medical records in their possession upon completion
of the audit, investigation, or proceedings;
(2) Approve or deny applications to participate as a provider of services furnished to industrially injured workers
pursuant to Title 51 RCW;
(3) Terminate or suspend eligibility to participate as a
provider of services furnished to industrially injured workers
pursuant to Title 51 RCW; and
(4) Pursue collection of unpaid overpayments and/or
penalties plus interest accrued from health care providers
pursuant to RCW 51.32.240(6). [2004 c 243 § 6; 1994 c 154
§ 312; 1993 c 515 § 6; 1986 c 200 § 2.]
Adoption of rules—2004 c 243: See note following RCW 51.08.177.
Parts and captions not law—Effective date—Severability—1994 c
154: See RCW 42.52.902, 42.52.904, and 42.52.905.
51.36.120
51.36.120 Confidential information. When contracting for health care services and equipment, the department,
upon request of a contractor, shall keep confidential financial
and valuable trade information, which shall be exempt from
public inspection and copying under chapter 42.17 RCW.
[1989 c 189 § 2.]
51.36.130
51.36.130 False, misleading, or deceptive advertising
or representations. In addition to other authority granted
under this chapter, the department may deny applications of
health care providers to participate as a provider of services
to injured workers under this title, or terminate or suspend
providers' eligibility to participate, if the provider uses or
causes or promotes the use of, advertising matter, promotional materials, or other representation, however disseminated or published, that is false, misleading, or deceptive with
respect to the industrial insurance system or benefits for
injured workers under this title. [1997 c 336 § 2.]
Chapter 51.44
Chapter 51.44 RCW
FUNDS
Sections
51.44.010
51.44.020
51.44.030
51.44.033
51.44.040
51.44.050
51.44.060
51.44.070
51.44.080
51.44.090
51.44.100
51.44.110
51.44.120
51.44.140
51.44.150
Accident fund.
Medical aid fund.
Reserve fund.
Supplemental pension fund.
Second injury fund.
Catastrophe injury account.
Charge to accident fund for the catastrophe injury account.
Transfer from accident fund, accounts to reserve fund—Annuity values—Self-insurers—Penalty for delay or refusal of
reimbursement.
Reserve fund—Transfers from state fund—Surplus—Deficiency.
Reserve fund record and maintenance by state treasurer.
Investment of accident, medical aid, reserve, supplemental
pension funds.
Disbursements of funds.
Liability of state treasurer.
Self-insurer deposits into reserve fund—Accounts within
fund—Surpluses and deficits.
Assessments upon self-insurers for administration costs.
[Title 51 RCW—page 65]
51.44.010
51.44.160
51.44.170
Title 51 RCW: Industrial Insurance
Interfund loans between reserve and supplemental pension
funds—Audit.
Industrial insurance premium refund account.
51.44.010
51.44.010 Accident fund. There shall be, in the office
of the state treasurer, a fund to be known and designated as
the "accident fund." [1961 c 23 § 51.44.010. Prior: 1947 c
247 § 1(4d), part; Rem. Supp. 1947 § 7676d, part.]
51.44.050
51.44.050 Catastrophe injury account. There shall be
a special account within the accident fund to be known as the
"catastrophe injury account" which shall be used only for the
purpose of defraying charges against it as provided in RCW
51.16.130. [1961 c 23 § 51.44.050. Prior: 1959 c 308 § 6;
1957 c 70 § 40; prior: 1947 c 247 § 1(4f), part; 1911 c 74 §
4, part; Rem. Supp. 1947 § 7676f, part.]
51.44.060
51.44.020
51.44.020 Medical aid fund. There shall be, in the
office of the state treasurer, a fund to be known and designated as the "medical aid fund." [1961 c 23 § 51.44.020.
Prior: 1923 c 136 § 8, part; 1919 c 129 § 1, part; 1917 c 28 §
4, part; RRS § 7713, part.]
51.44.060 Charge to accident fund for the catastrophe injury account. The charge to the accident fund to
defray charges against the catastrophe injury account shall be
made pursuant to rules and regulations promulgated by the
director. [1972 ex.s. c 43 § 28; 1961 c 23 § 51.44.060. Prior:
1959 c 308 § 7; 1957 c 70 § 41; prior: 1947 c 247 § 1(4f),
part; 1911 c 74 § 4, part; Rem. Supp. 1947 § 7676f, part.]
51.44.030
51.44.030 Reserve fund. There shall be, in the office of
the state treasurer, a fund to be known and designated as the
"reserve fund." [1961 c 23 § 51.44.030. Prior: 1957 c 70 §
39; prior: 1949 c 219 § 1, part; 1947 c 246 § 1, part; 1929 c
132 § 2, part; 1927 c 310 § 4, part; 1923 c 136 § 2, part; 1919
c 131 § 4, part; 1917 c 28 § 1, part; 1913 c 148 § 1, part; 1911
c 74 § 5, part; Rem. Supp. 1949 § 7679, part.]
51.44.033
51.44.033 Supplemental pension fund. There shall be,
in the office of the state treasurer, a fund to be known and
designated as the "supplemental pension fund". The director
shall be the administrator thereof. Said fund shall be used for
the sole purpose of making the additional payments therefrom prescribed in this title. [1975 1st ex.s. c 224 § 16; 1971
ex.s. c 289 § 18.]
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.44.040
51.44.040 Second injury fund. (1) There shall be in the
office of the state treasurer, a fund to be known and designated as the "second injury fund", which shall be used only
for the purpose of defraying charges against it as provided in
RCW 51.16.120 and 51.32.250, as now or hereafter
amended. Said fund shall be administered by the director.
The state treasurer shall be the custodian of the second injury
fund and shall be authorized to disburse moneys from it only
upon written order of the director.
(2) Payments to the second injury fund from the accident
fund shall be made pursuant to rules and regulations promulgated by the director.
(3) Assessments for the second injury fund shall be
imposed on self-insurers pursuant to rules and regulations
promulgated by the director to ensure that self-insurers shall
pay to such fund in the proportion that the payments made
from such fund on account of claims made against self-insurers bears to the total sum of payments from such fund. [1982
c 63 § 14; 1977 ex.s. c 323 § 21; 1972 ex.s. c 43 § 27; 1961 c
23 § 51.44.040. Prior: 1959 c 308 § 17; 1947 c 183 § 1; 1945
c 219 § 2; Rem. Supp. 1947 § 7676-1b.]
Effective dates—Implementation—1982 c 63: See note following
RCW 51.32.095.
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
[Title 51 RCW—page 66]
51.44.070
51.44.070 Transfer from accident fund, accounts to
reserve fund—Annuity values—Self-insurers—Penalty
for delay or refusal of reimbursement. (1) For every case
resulting in death or permanent total disability the department
shall transfer on its books from the accident fund of the
proper class and/or appropriate account to the "reserve fund"
a sum of money for that case equal to the estimated present
cash value of the monthly payments provided for it, to be calculated upon the basis of an annuity covering the payments in
this title provided to be made for the case. Such annuity values shall be based upon rates of mortality, disability, remarriage, and interest as determined by the department, taking
into account the experience of the reserve fund in such
respects.
Similarly, a self-insurer in these circumstances shall pay
into the reserve fund a sum of money computed in the same
manner, and the disbursements therefrom shall be made as in
other cases.
(2) As an alternative to payment procedures otherwise
provided under law, in the event of death or permanent total
disability to workers of self-insured employers, a self-insured
employer may upon establishment of such obligation file
with the department a bond, an assignment of account from a
federally or state chartered commercial banking institution
authorized to conduct business in the state of Washington, or
purchase an annuity, in an amount deemed by the department
to be reasonably sufficient to insure payment of the pension
benefits provided by law. Any purchase of an annuity shall be
from an institution meeting the following minimum requirements: (a) The institution must be rated no less than "A+" by
A.M. Best, and no less than "AA" by Moody's and by Standard & Poor's; (b) the value of the assets of the institution
must not be less than ten billion dollars; (c) not more than ten
percent of the institution's assets may include bonds that are
rated less than "BBB" by Moody's and Standard & Poor's; (d)
not more than five percent of the assets may be held as equity
in real estate; and (e) not more than twenty-five percent of the
assets may be first mortgages, and not more than five percent
may be second mortgages. The department shall adopt rules
governing assignments of account and annuities. Such rules
shall ensure that the funds are available if needed, even in the
case of failure of the banking institution, the institution
authorized to provide annuities, or the employer's business.
The annuity value for every such case shall be determined by the department based upon the department's experi(2004 Ed.)
Funds
ence as to rates of mortality, disability, remarriage, and interest. The amount of the required bond, assignment of account,
or annuity may be reviewed and adjusted periodically by the
department, based upon periodic redeterminations by the
department as to the outstanding annuity value for the case.
Under such alternative, the department shall administer
the payment of this obligation to the beneficiary or beneficiaries. The department shall be reimbursed for all such payments from the self-insured employer through periodic
charges not less than quarterly in a manner to be determined
by the director. The self-insured employer shall additionally
pay to the department a deposit equal to the first three
months' payments otherwise required under RCW 51.32.050
and 51.32.060. Such deposit shall be placed in the reserve
fund in accordance with RCW 51.44.140 and shall be
returned to the respective self-insured employer when
monthly payments are no longer required for such particular
obligation.
If a self-insurer delays or refuses to reimburse the department beyond fifteen days after the reimbursement charges
become due, there shall be a penalty paid by the self-insurer
upon order of the director of an additional amount equal to
twenty-five percent of the amount then due which shall be
paid into the pension reserve fund. Such an order shall conform to the requirements of RCW 51.52.050. [1992 c 124 §
1; 1989 c 190 § 1; 1983 c 312 § 1; 1981 c 325 § 1; 1971 ex.s.
c 289 § 56; 1961 c 274 § 5; 1961 c 23 § 51.44.070. Prior:
1959 c 308 § 8; 1957 c 70 § 42; prior: 1951 c 236 § 7; 1941
c 169 § 1; Rem. Supp. 1941 § 7705-2; prior: 1929 c 132 § 2,
part; 1927 c 310 § 4, part; 1923 c 136 § 2, part; 1919 c 131 §
4, part; 1917 c 28 § 1, part; 1913 c 148 § 1, part; 1911 c 74 §
5, part; Rem. Supp. 1949 § 7679, part.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.44.080
51.44.080 Reserve fund—Transfers from state
fund—Surplus—Deficiency. The department shall notify
the state treasurer from time to time, of such transfers as a
whole from the state fund to the reserve fund and the interest
or other earnings of the reserve fund shall become a part of
the reserve fund itself. As soon as possible after June 30th of
each year the department shall expert the reserve fund to
ascertain its standing as of June 30th of that year and the relation of its outstanding annuities at their then value to the cash
on hand or at interest belonging to the fund. The department
shall promptly report the result of the examination to the state
treasurer in writing not later than September 30th following.
If the report shows that there was on said June 30th, in the
reserve fund in cash or at interest, a greater sum than the then
annuity value of the outstanding pension obligations, the surplus shall be forthwith turned over to the state fund but, if the
report shows the contrary condition of the reserve fund, the
deficiency shall be forthwith made good out of the state fund.
[1989 c 190 § 2; 1988 c 161 § 8; 1972 ex.s. c 43 § 29; 1971
ex.s. c 289 § 57; 1961 c 23 § 51.44.080. Prior: 1957 c 70 §
43; prior: 1949 c 219 § 1, part; 1947 c 246 § 1, part; 1929 c
132 § 2, part; 1927 c 310 § 4, part; 1923 c 136 § 2, part; 1919
c 131 § 4, part; 1917 c 28 § 1, part; 1913 c 148 § 1, part; 1911
c 74 § 5, part; Rem. Supp. 1949 § 7679, part.]
(2004 Ed.)
51.44.100
51.44.090 Reserve fund record and maintenance by
state treasurer. The state treasurer shall keep accurate
accounts of the reserve fund and the investment and earnings
thereof, to the end that the total reserve fund shall at all times,
as nearly as may be, be properly and fully invested and, to
meet current demands for pension or lump sum payments,
may, if necessary, make temporary loans to the reserve fund
out of the accident fund, repaying the same from the earnings
of the reserve fund or from collections of its investments or,
if necessary, sales of the same. [1972 ex.s. c 43 § 31; 1961 c
23 § 51.44.090. Prior: 1957 c 70 § 44; prior: 1949 c 219 § 1,
part; 1947 c 246 § 1, part; 1929 c 132 § 2, part; 1927 c 310 §
4, part; 1923 c 136 § 2, part; 1919 c 131 § 4, part; 1917 c 28
§ 1, part; 1913 c 148 § 1, part; 1911 c 74 § 5, part; Rem. Supp.
1949 § 7679, part.]
51.44.090
51.44.100 Investment of accident, medical aid,
reserve, supplemental pension funds. Whenever, in the
judgment of the state investment board, there shall be in the
accident fund, medical aid fund, reserve fund, or the supplemental pension fund, funds in excess of that amount deemed
by the state investment board to be sufficient to meet the current expenditures properly payable therefrom, the state
investment board may invest and reinvest such excess funds
in the manner prescribed by RCW 43.84.150, and not otherwise.
The state investment board may give consideration to the
investment of excess funds in federally insured student loans
made to persons in vocational training or retraining or reeducation programs. The state investment board may make such
investments by purchasing from savings and loan associations, commercial banks, mutual savings banks, credit unions
and other institutions authorized to be lenders under the federally insured student loan act, organized under federal or
state law and operating in this state loans made by such institutions to residents of the state of Washington particularly for
the purpose of vocational training or reeducation: PROVIDED, That the state investment board shall purchase only
that portion of any loan which is guaranteed or insured by the
United States of America, or by any agency or instrumentality of the United States of America: PROVIDED FURTHER, That the state investment board is authorized to enter
into contracts with such savings and loan associations, commercial banks, mutual savings banks, credit unions, and other
institutions authorized to be lenders under the federally
insured student loan act to service loans purchased pursuant
to this section at an agreed upon contract price. [1990 c 80 §
1; 1981 c 3 § 41; 1973 1st ex.s. c 103 § 6; 1972 ex.s. c 92 § 2;
1965 ex.s. c 41 § 1; 1961 c 281 § 10; 1961 c 23 § 51.44.100.
Prior: 1959 c 244 § 1; 1935 c 90 § 1; RRS § 7705-1.]
51.44.100
Effective dates—Severability—1981 c 3: See notes following RCW
43.33A.010.
Severability—1973 1st ex.s. c 103: See note following RCW 2.10.080.
Legislative finding—Purpose—1972 ex.s. c 92: "The legislature finds
that the accident fund, medical aid fund and reserve funds could be invested
in such a manner as to promote vocational training and retraining or reeducation among the workers of this state. The legislature recognizes that federally insured student loans are already available to students at institutions of
higher education. The legislature declares that the purpose of this 1972
amendatory act is to encourage the state finance committee to consider making some investment funds available for investment in federally insured student loans made to persons enrolled in vocational training and retraining or
reeducation programs." [1972 ex.s. c 92 § 1.]
[Title 51 RCW—page 67]
51.44.110
Title 51 RCW: Industrial Insurance
Motor vehicle fund warrants for state highway acquisition: RCW 47.12.180
through 47.12.240.
Rehabilitation services for individuals with disabilities: Chapter 74.29
RCW.
Student loans: RCW 28B.10.280.
Uniform Minor Student Capacity to Borrow Act: Chapter 26.30 RCW.
51.44.110
51.44.110 Disbursements of funds. Disbursement out
of the several funds shall be made only upon warrants drawn
by the department. The state treasurer shall pay every warrant
out of the fund upon which it is drawn. If, at any time, there
shall not be sufficient money in the fund on which any such
warrant is drawn wherewith to pay the same, the employer on
account of whose worker it was that the warrant was drawn
shall pay the same, and he or she shall be credited upon his or
her next following contribution to such fund the amount so
paid with interest thereon at the legal rate from the date of
such payment to the date such next following contribution
became payable and, if the amount of the credit shall exceed
the amount of the contribution, he or she shall have a warrant
upon the same fund for the excess and, if any such warrant
shall not be so paid, it shall remain, nevertheless, payable out
of the fund. [1977 ex.s. c 350 § 68; 1973 c 106 § 30; 1961 c
23 § 51.44.110. Prior: 1911 c 74 § 26, part; RRS § 7705,
part.]
51.44.120
51.44.120 Liability of state treasurer. The state treasurer shall be liable on his official bond for the safe custody
of the moneys and securities of the several funds, but all of
the provisions of law relating to state depositaries and to the
deposit of state moneys therein shall apply to the several
funds and securities. [1961 c 23 § 51.44.120. Prior: (i) 1911
c 74 § 26, part; RRS § 7705, part. (ii) 1917 c 28 § 14; RRS §
7723.]
51.44.140
51.44.140 Self-insurer deposits into reserve fund—
Accounts within fund—Surpluses and deficits. Each selfinsurer shall make such deposits, into the reserve fund, as the
department shall require pursuant to RCW 51.44.070, as are
necessary to guarantee the payments of the pensions established pursuant to RCW 51.32.050 and 51.32.060.
Each self-insurer shall have an account within the
reserve fund. Each such account shall be credited with its
proportionate share of interest or other earnings as determined in RCW 51.44.080.
Each such account in the reserve fund shall be experted
by the insurance commissioner as required in RCW
51.44.080. Any surpluses shall be forthwith returned to the
respective self-insurers, and each deficit shall forthwith be
made good to the reserve fund by the self-insurer. [1972 ex.s.
c 43 § 30; 1971 ex.s. c 289 § 58.]
51.44.150
51.44.150 Assessments upon self-insurers for administration costs. The director shall impose and collect assessments each fiscal year upon all self-insurers in the amount of
the estimated costs of administering their portion of this title
during such fiscal year. The time and manner of imposing
and collecting assessments due the department shall be set
forth in regulations promulgated by the director in accordance with chapter 34.05 RCW. [1971 ex.s. c 289 § 59.]
[Title 51 RCW—page 68]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.44.160
51.44.160 Interfund loans between reserve and supplemental pension funds—Audit. The director is authorized to make periodic temporary interfund transfers between
the reserve and supplemental pension funds as may be necessary to provide for payments from the supplemental pension
fund as prescribed in this title. At least once annually, the
director shall cause an audit to be made of all pension funds
administered by the department to insure that proper crediting of funds has been made, and further to direct transfers
between the funds for any interfund loans which may have
been made in the preceding year and not fully reimbursed.
[1975 1st ex.s. c 224 § 17; 1971 ex.s. c 289 § 60.]
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.44.170
51.44.170 Industrial insurance premium refund
account. The industrial insurance premium refund account is
created in the custody of the state treasurer. All industrial
insurance refunds earned by state agencies or institutions of
higher education under the state fund retrospective rating
program shall be deposited into the account. The account is
subject to the allotment procedures under chapter 43.88
RCW, but no appropriation is required for expenditures from
the account. Only the executive head of the agency or institution of higher education, or designee, may authorize expenditures from the account. No agency or institution of higher
education may make an expenditure from the account for an
amount greater than the refund earned by the agency. If the
agency or institution of higher education has staff dedicated
to workers' compensation claims management, expenditures
from the account must be used to pay for that staff, but additional expenditure from the account may be used for any program within an agency or institution of higher education that
promotes or provides incentives for employee workplace
safety and health and early, appropriate return-to-work for
injured employees. During the 2003-2005 fiscal biennium,
the legislature may transfer from the industrial insurance premium refund account to the state general fund such amounts
as reflect the excess fund balance of the account. [2003 1st
sp.s. c 25 § 926; 2002 c 371 § 916; 1997 c 327 § 1; 1991 sp.s.
c 13 § 29; 1990 c 204 § 2.]
Severability—Effective date—2003 1st sp.s. c 25: See notes following RCW 19.28.351.
Severability—Effective date—2002 c 371: See notes following RCW
9.46.100.
Effective dates—Severability—1991 sp.s. c 13: See notes following
RCW 18.08.240.
Findings—Purpose—1990 c 204: "The legislature finds that workplace safety in state employment is of paramount importance in maintaining
a productive and committed state work force. The legislature also finds that
recognition in state agencies and institutions of higher education of industrial
insurance programs that provide safe working environments and promote
early return-to-work for injured employees will encourage agencies and
institutions of higher education to develop these programs. A purpose of this
act is to provide incentives for agencies and institutions of higher education
to participate in industrial insurance safety programs and return-to-work programs by authorizing use of the industrial insurance premium refunds earned
by agencies or institutions of higher education participating in industrial
insurance retrospective rating programs. Since agency and institution of
(2004 Ed.)
Penalties
higher education retrospective rating refunds are generated from safety performance and cannot be set at predictable levels determined by the budget
process, the incentive awards should not impact an agency's or institution of
higher education's legislatively approved budget." [1997 c 327 § 2; 1990 c
204 § 1.]
Effective date—1990 c 204 § 2: "Section 2 of this act shall take effect
July 1, 1990." [1990 c 204 § 6.]
Chapter 51.48
Chapter 51.48 RCW
PENALTIES
Sections
51.48.010
51.48.017
51.48.020
51.48.025
51.48.030
51.48.040
51.48.050
51.48.055
51.48.060
51.48.075
51.48.080
51.48.090
51.48.100
51.48.103
51.48.105
51.48.110
51.48.120
51.48.131
51.48.140
51.48.150
51.48.160
51.48.170
51.48.180
51.48.190
51.48.200
51.48.210
51.48.220
51.48.230
51.48.240
51.48.250
51.48.260
51.48.270
51.48.280
51.48.290
51.48.010
Employer's liability for penalties, injury or disease occurring
before payment of compensation secured.
Self-insurer delaying or refusing to pay benefits.
Employer's false reporting or failure to secure payment of
compensation—False information by claimants.
Retaliation by employer prohibited—Investigation—Remedies.
Failure to keep records and make reports.
Inspection of employer's records.
Liability for illegal collections for medical aid.
Termination, dissolution, or abandonment of business—Personal liability for unpaid premiums.
Physician or licensed advanced registered nurse practitioner—
Failure to report or comply.
Information and training on premium liability.
Violation of rules.
Collection.
Waiver—Penalty-free periods.
Engaging in business without certificate of coverage.
Failure to apply for coverage of employees—Not applicable,
when.
Decedent having no beneficiaries—Payment into supplemental pension fund.
Notice of assessment for default in payments by employer—
Issuance—Service—Contents.
Notice of assessment for default in payments by employer—
Appeal.
Notice of assessment for employer's default in payments—
When amount becomes final—Warrant—Execution—Garnishment—Fees.
Notice of assessment for employer's default in payments—
Notice to withhold and deliver property due employer.
Revocation of certificate of coverage for failure to pay warrants or taxes.
Emergency assessment and collection of taxes.
Emergency assessment and collection of taxes—Distraint and
sale of property.
Emergency assessment and collection of taxes—Conduct of
sale.
Search and seizure of property to satisfy tax warrant or assessment—Issuance and execution of search warrant.
Delinquent taxes.
Order of execution upon property—Procedure—Sale.
Order of execution upon property—Enforcement.
Agents and employees of department not personally liable—
Conditions.
Liability of persons wilfully obtaining erroneous payments—
Civil penalties.
Liability of persons unintentionally obtaining erroneous payments.
Criminal liability of persons making false statements or concealing information.
Kickbacks, bribes, and rebates—Representation fees—Criminal liability—Exceptions.
Written verification by health services providers.
51.48.010 Employer's liability for penalties, injury or
disease occurring before payment of compensation
secured. Every employer shall be liable for the penalties
described in this title and may also be liable if an injury or
occupational disease has been sustained by a worker prior to
the time he or she has secured the payment of such compensation to a penalty in a sum not less than fifty percent nor
more than one hundred percent of the cost for such injury or
(2004 Ed.)
51.48.020
occupational disease. Any employer who has failed to secure
payment of compensation for his or her workers covered
under this title may also be liable to a maximum penalty in a
sum of five hundred dollars or in a sum double the amount of
premiums incurred prior to securing payment of compensation under this title, whichever is greater, for the benefit of
the medical aid fund. [1985 c 347 § 2; 1982 c 63 § 20; 1977
ex.s. c 350 § 69; 1971 ex.s. c 289 § 61; 1961 c 23 § 51.48.010.
Prior: 1947 c 247 § 1(4d), part; Rem. Supp. 1947 § 7676d,
part.]
Effective dates—Implementation—1982 c 63: See note following
RCW 51.32.095.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.48.017
51.48.017 Self-insurer delaying or refusing to pay
benefits. If a self-insurer unreasonably delays or refuses to
pay benefits as they become due there shall be paid by the
self-insurer upon order of the director an additional amount
equal to five hundred dollars or twenty-five percent of the
amount then due, whichever is greater, which shall accrue for
the benefit of the claimant and shall be paid to him with the
benefits which may be assessed under this title. The director
shall issue an order determining whether there was an unreasonable delay or refusal to pay benefits within thirty days
upon the request of the claimant. Such an order shall conform
to the requirements of RCW 51.52.050. [1985 c 347 § 3;
1971 ex.s. c 289 § 66.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.48.020
51.48.020 Employer's false reporting or failure to
secure payment of compensation—False information by
claimants. (1)(a) Any employer, who knowingly misrepresents to the department the amount of his or her payroll or
employee hours upon which the premium under this title is
based, shall be liable to the state for up to ten times the
amount of the difference in premiums paid and the amount
the employer should have paid and for the reasonable
expenses of auditing his or her books and collecting such
sums. Such liability may be enforced in the name of the
department.
(b) An employer is guilty of a class C felony, if:
(i) The employer, with intent to evade determination and
payment of the correct amount of the premiums, knowingly
makes misrepresentations regarding payroll or employee
hours; or
(ii) The employer engages in employment covered under
this title and, with intent to evade determination and payment
of the correct amount of the premiums, knowingly fails to
secure payment of compensation under this title or knowingly fails to report the payroll or employee hours related to
that employment.
(c) Upon conviction under (b) of this subsection, the
employer shall be ordered by the court to pay the premium
due and owing, a penalty in the amount of one hundred percent of the premium due and owing, and interest on the premium and penalty from the time the premium was due until
the date of payment. The court shall:
(i) Collect the premium and interest and transmit it to the
department of labor and industries; and
[Title 51 RCW—page 69]
51.48.025
Title 51 RCW: Industrial Insurance
(ii) Collect the penalty and disburse it pro rata as follows: One-third to the investigative agencies involved; onethird to the prosecuting authority; and one-third to the general
fund of the county in which the matter was prosecuted.
Payments collected under this subsection must be
applied until satisfaction of the obligation in the following
order: Premium payments; penalty; and interest.
(2) Any person claiming benefits under this title, who
knowingly gives false information required in any claim or
application under this title shall be guilty of a felony, or gross
misdemeanor in accordance with the theft and anticipatory
provisions of Title 9A RCW. [1997 c 324 § 1; 1995 c 160 §
4; 1987 c 221 § 1; 1977 ex.s. c 323 § 22; 1971 ex.s. c 289 §
63; 1961 c 23 § 51.48.020. Prior: 1947 c 247 § 1(4d), part;
Rem. Supp. 1947 § 7676d, part.]
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.48.025
51.48.025 Retaliation by employer prohibited—
Investigation—Remedies. (1) No employer may discharge
or in any manner discriminate against any employee because
such employee has filed or communicated to the employer an
intent to file a claim for compensation or exercises any rights
provided under this title. However, nothing in this section
prevents an employer from taking any action against a
worker for other reasons including, but not limited to, the
worker's failure to observe health or safety standards adopted
by the employer, or the frequency or nature of the worker's
job-related accidents.
(2) Any employee who believes that he or she has been
discharged or otherwise discriminated against by an
employer in violation of this section may file a complaint
with the director alleging discrimination within ninety days
of the date of the alleged violation. Upon receipt of such complaint, the director shall cause an investigation to be made as
the director deems appropriate. Within ninety days of the
receipt of a complaint filed under this section, the director
shall notify the complainant of his or her determination. If
upon such investigation, it is determined that this section has
been violated, the director shall bring an action in the superior court of the county in which the violation is alleged to
have occurred.
(3) If the director determines that this section has not
been violated, the employee may institute the action on his or
her own behalf.
(4) In any action brought under this section, the superior
court shall have jurisdiction, for cause shown, to restrain violations of subsection (1) of this section and to order all appropriate relief including rehiring or reinstatement of the
employee with back pay. [1985 c 347 § 8.]
51.48.030
51.48.030 Failure to keep records and make reports.
Every employer who fails to keep and preserve the records
required by this title or fails to make the reports provided in
this title shall be subject to a penalty determined by the director but not to exceed two hundred fifty dollars or two hundred
percent of the quarterly tax for each such offense, whichever
is greater. Any employer who fails to keep and preserve the
records adequate to determine taxes due shall be forever
[Title 51 RCW—page 70]
barred from questioning, in an appeal before the board of
industrial insurance appeals or the courts, the correctness of
any assessment by the department based on any period for
which such records have not been kept and preserved. [1986
c 9 § 8; 1985 c 347 § 4; 1982 c 63 § 21; 1971 ex.s. c 289 § 64;
1961 c 23 § 51.48.030. Prior: 1947 c 247 § 1(4d), part; Rem.
Supp. 1947 § 7676d, part.]
Effective dates—Implementation—1982 c 63: See note following
RCW 51.32.095.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.48.040
51.48.040 Inspection of employer's records. (1) The
books, records and payrolls of the employer pertinent to the
administration of this title shall always be open to inspection
by the department or its traveling auditor, agent or assistant,
for the purpose of ascertaining the correctness of the payroll,
the persons employed, and such other information as may be
necessary for the department and its management under this
title.
(2) Refusal on the part of the employer to submit his or
her books, records and payrolls for such inspection to the
department, or any assistant presenting written authority
from the director, shall subject the offending employer to a
penalty determined by the director but not to exceed two hundred fifty dollars for each offense and the individual who personally gives such refusal is guilty of a misdemeanor.
(3) Any employer who fails to allow adequate inspection
in accordance with the requirements of this section is subject
to having its certificate of coverage revoked by order of the
department and is forever barred from questioning in any
proceeding in front of the board of industrial insurance
appeals or any court, the correctness of any assessment by the
department based on any period for which such records have
not been produced for inspection. [2003 c 53 § 282; 1986 c 9
§ 9; 1985 c 347 § 5; 1961 c 23 § 51.48.040. Prior: 1911 c 74
§ 15, part; RRS § 7690, part.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
51.48.050
51.48.050 Liability for illegal collections for medical
aid. It shall be unlawful for any employer to directly or indirectly demand or collect from any of his or her workers any
sum of money whatsoever for or on account of medical, surgical, hospital, or other treatment or transportation of injured
workers, other than as specified in RCW 51.16.140, and any
employer who directly or indirectly violates the foregoing
provisions of this section shall be liable to the state for the
benefit of the medical aid fund in ten times the amount so
demanded or collected, and such employer and every officer,
agent, or servant of such employer knowingly participating
therein shall also be guilty of a misdemeanor. [1980 c 14 §
13. Prior: 1977 ex.s. c 350 § 70; 1977 ex.s. c 323 § 23; 1961
c 23 § 51.48.050; prior: 1917 c 28 § 17; RRS § 7726.]
Severability—Effective date—1977 ex.s. c 323: See notes following
RCW 51.04.040.
51.48.055
51.48.055 Termination, dissolution, or abandonment
of business—Personal liability for unpaid premiums. (1)
Upon termination, dissolution, or abandonment of a corporate or limited liability company business, any officer, mem(2004 Ed.)
Penalties
ber, manager, or other person having control or supervision
of payment and/or reporting of industrial insurance, or who is
charged with the responsibility for the filing of returns, is personally liable for any unpaid premiums and interest and penalties on those premiums if such officer or other person willfully fails to pay or to cause to be paid any premiums due the
department under chapter 51.16 RCW.
For purposes of this subsection "willfully fails to pay or
to cause to be paid" means that the failure was the result of an
intentional, conscious, and voluntary course of action.
(2) The officer, member, manager, or other person is liable only for premiums that became due during the period he
or she had the control, supervision, responsibility, or duty to
act for the corporation described in subsection (1) of this section, plus interest and penalties on those premiums.
(3) The officer, member, manager, or other person is not
liable if that person is not exempt from mandatory coverage
under RCW 51.12.020 and was directed not to pay the
employer's premiums by someone who is exempt.
(4) The officer, member, manager, or other person is not
liable if all of the assets of the corporation or limited liability
company have been applied to its debts through bankruptcy
or receivership.
(5) Any person having been issued a notice of assessment under this section is entitled to the appeal procedures
under RCW 51.48.131.
(6) This section does not relieve the corporation or limited liability company of its liabilities under Title 51 RCW or
otherwise impair other tax collection remedies afforded by
law.
(7) Collection authority and procedures prescribed in
this chapter apply to collections under this section. [2004 c
243 § 3.]
51.48.103
description of the treatment given, and an estimate of the
probable duration of the injury, or who fails or refuses to render all necessary assistance to the injured worker, as required
by this title, shall be subject to a civil penalty determined by
the director but not to exceed two hundred fifty dollars.
[1985 c 347 § 6; 1977 ex.s. c 350 § 71; 1971 ex.s. c 289 § 20;
1961 c 23 § 51.48.060. Prior: 1927 c 310 § 6(e), part; 1921 c
182 § 7, part; 1911 c 74 § 12, part; RRS § 7686(e), part.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.48.075
51.48.075 Information and training on premium liability. The department shall, working with business associations and other employer and employee groups when practical, publish information and provide training to promote
understanding of the premium liability that may be incurred
under this chapter. [2004 c 243 § 5.]
Adoption of rules—2004 c 243: See note following RCW 51.08.177.
51.48.080
51.48.080 Violation of rules. Every person, firm or
corporation who violates or fails to obey, observe or comply
with any rule of the department promulgated under authority
of this title, shall be subject to a penalty of not to exceed five
hundred dollars. [1985 c 347 § 7; 1961 c 23 § 51.48.080.
Prior: 1915 c 188 § 8; RRS § 7704.]
51.48.090
51.48.090 Collection. Civil penalties to the state under
this title shall be collected by civil action in the name of the
state and paid into the accident fund unless a different fund is
designated. [1961 c 23 § 51.48.090. Prior: (i) 1947 c 247 §
1, part; Rem. Supp. 1947 § 7676d, part. (ii) 1911 c 74 § 15,
part; RRS § 7690, part. (iii) 1917 c 28 § 17, part; RRS § 7726,
part.]
Adoption of rules—2004 c 243: See note following RCW 51.08.177.
51.48.100
51.48.060 Physician or licensed advanced registered
nurse practitioner—Failure to report or comply.
(Expires June 30, 2007.) Any physician or licensed
advanced registered nurse practitioner who fails, neglects or
refuses to file a report with the director, as required by this
title, within five days of the date of treatment, showing the
condition of the injured worker at the time of treatment, a
description of the treatment given, and an estimate of the
probable duration of the injury, or who fails or refuses to render all necessary assistance to the injured worker, as required
by this title, shall be subject to a civil penalty determined by
the director but not to exceed two hundred fifty dollars.
[2004 c 65 § 14; 1985 c 347 § 6; 1977 ex.s. c 350 § 71; 1971
ex.s. c 289 § 20; 1961 c 23 § 51.48.060. Prior: 1927 c 310 §
6(e), part; 1921 c 182 § 7, part; 1911 c 74 § 12, part; RRS §
7686(e), part.]
51.48.060
Report to legislature—Effective date—Expiration date—Severability—2004 c 65: See notes following RCW 51.04.030.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.48.060 Physician—Failure to report or comply.
(Effective June 30, 2007.) Any physician who fails, neglects
or refuses to file a report with the director, as required by this
title, within five days of the date of treatment, showing the
condition of the injured worker at the time of treatment, a
51.48.060
(2004 Ed.)
51.48.100 Waiver—Penalty-free periods. (1) The
director may waive the whole or any part of any penalty
charged under this title.
(2) Until June 30, 1986: (a) The director may, at his or
her discretion, declare a penalty-free period of no more than
three months only for employers who have never previously
registered under RCW 51.16.110 for eligible employees
under Title 51 RCW; and (b) such employers may qualify
once for penalty-free status upon payment of up to one year's
past due premium in full and satisfaction of the requirements
of RCW 51.16.110. Such employers shall be subject to all
penalties for any subsequent failure to comply with the
requirements of this title. [1985 c 227 § 1; 1961 c 23 §
51.48.100. Prior: 1947 c 247 § 1, part; Rem. Supp. 1947 §
7676d, part.]
Effective date—1985 c 227: "This act is necessary for the immediate
preservation of the public peace, health, and safety, the support of the state
government and its existing public institutions, and shall take effect July 1,
1985." [1985 c 227 § 2.]
51.48.103
51.48.103 Engaging in business without certificate of
coverage. (1) It is a gross misdemeanor:
(a) For any employer to engage in business subject to
this title without having obtained a certificate of coverage as
provided for in this title;
(b) For the president, vice-president, secretary, treasurer,
or other officer of any company to cause or permit the com[Title 51 RCW—page 71]
51.48.105
Title 51 RCW: Industrial Insurance
pany to engage in business subject to this title without having
obtained a certificate of coverage as provided for in this title.
(2) It is a class C felony punishable according to chapter
9A.20 RCW:
(a) For any employer to engage in business subject to
this title after the employer's certificate of coverage has been
revoked by order of the department;
(b) For the president, vice-president, secretary, treasurer,
or other officer of any company to cause or permit the company to engage in business subject to this title after revocation of a certificate of coverage. [2003 c 53 § 283; 1986 c 9
§ 12.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
51.48.105 Failure to apply for coverage of employees—Not applicable, when. The penalties provided under
this title for failure to apply for coverage for employees as
required by the provisions of Title 51 RCW, the worker's
compensation law, shall not be applicable prior to March 1,
1972, as to any employer whose work first became subject to
this title on or after January 1, 1972. [1977 ex.s. c 350 § 73;
1972 ex.s. c 78 § 1.]
51.48.105
51.48.110 Decedent having no beneficiaries—Payment into supplemental pension fund. Where death results
from the injury or occupational disease and the deceased
leaves no beneficiaries, a self-insurer shall pay into the supplemental pension fund the sum of ten thousand dollars, less
an y amou nt th at the self -insu rer paid un der RCW
51.32.040(2) as payment due for the period of time before the
worker's death. [1999 c 185 § 2; 1986 c 56 § 1; 1971 ex.s. c
289 § 65.]
51.48.110
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.48.120 Notice of assessment for default in payments by employer—Issuance—Service—Contents. If
any employer should default in any payment due to the state
fund the director or the director's designee may issue a notice
of assessment certifying the amount due, which notice shall
be served upon the employer by mailing such notice to the
employer by certified mail to the employer's last known
address or served in the manner prescribed for the service of
a summons in a civil action. Such notice shall contain the
information that an appeal must be filed with the board of
industrial insurance appeals and the director by mail or personally within thirty days of the date of service of the notice
of assessment in order to appeal the assessment unless a written request for reconsideration is filed with the department of
labor and industries. [1995 c 160 § 5; 1986 c 9 § 10; 1985 c
315 § 6; 1972 ex.s. c 43 § 32.]
51.48.120
51.48.131 Notice of assessment for default in payments by employer—Appeal. A notice of assessment
becomes final thirty days from the date the notice of assessment was served upon the employer unless: (1) A written
request for reconsideration is filed with the department of
labor and industries, or (2) an appeal is filed with the board of
industrial insurance appeals and sent to the director of labor
and industries by mail or delivered in person. The appeal
51.48.131
[Title 51 RCW—page 72]
shall not be denied solely on the basis that it was not filed
with both the board and the director if it was filed with either
the board or the director. The appeal shall set forth with particularity the reason for the employer's appeal and the
amounts, if any, that the employer admits are due.
The department, within thirty days after receiving a
notice of appeal, may modify, reverse, or change any notice
of assessment, or may hold any such notice of assessment in
abeyance pending further investigation, and the board shall
thereupon deny the appeal, without prejudice to the
employer's right to appeal from any subsequent determinative notice of assessment issued by the department.
The burden of proof rests upon the employer in an appeal
to prove that the taxes and penalties assessed upon the
employer in the notice of assessment are incorrect. The
department shall promptly transmit its original record, or a
legible copy thereof, produced by mechanical, photographic,
or electronic means, in such matter to the board. RCW
51.52.080 through 51.52.106 govern appeals under this section. Further appeals taken from a final decision of the board
under this section are governed by the provisions relating to
judicial review of administrative decisions contained in RCW
34.05.510 through 34.05.598, and the department has the
same right of review from the board's decisions as do
employers. [1989 c 175 § 120; 1987 c 316 § 3; 1985 c 315 §
7.]
Effective date—1989 c 175: See note following RCW 34.05.010.
51.48.140
51.48.140 Notice of assessment for employer's
default in payments—When amount becomes final—
Warrant—Execution—Garnishment—Fees. If a notice of
appeal is not served on the director and the board of industrial
insurance appeals pursuant to RCW 51.48.131 within thirty
days from the date of service of the notice of assessment, or
if a final decision and order of the board of industrial insurance appeals in favor of the department is not appealed to
superior court in the manner specified in RCW 34.05.510
through 34.05.598, or if a final decision of any court in favor
of the department is not appealed within the time allowed by
law, then the amount of the unappealed assessment, or such
amount of the assessment as is found due by the final decision and order of the board of industrial insurance appeals or
final decision of the court shall be deemed final and the director or the director's designee may file with the clerk of any
county within the state a warrant in the amount of the notice
of assessment. The clerk of the county wherein the warrant is
filed shall immediately designate a superior court cause number for such warrant, and the clerk shall cause to be entered in
the judgment docket under the superior court cause number
assigned to the warrant, the name of such employer mentioned in the warrant, the amount of the taxes and penalties
due thereon, and the date when such warrant was filed. The
aggregate amount of such warrant as docketed shall become
a lien upon the title to, and interest in all real and personal
property of the employer against whom the warrant is issued,
the same as a judgment in a civil case duly docketed in the
office of such clerk. The sheriff shall thereupon proceed upon
the same in all respects and with like effect as prescribed by
law with respect to execution or other process issued against
rights or property upon judgment in the superior court. Such
(2004 Ed.)
Penalties
warrant so docketed shall be sufficient to support the issuance of writs of garnishment in favor of the state in a manner
provided by law in case of judgment, wholly or partially
unsatisfied. The clerk of the court shall be entitled to a filing
fee under RCW 36.18.012(10), which shall be added to the
amount of the warrant. A copy of such warrant shall be
mailed to the employer within three days of filing with the
clerk. [2001 c 146 § 11; 1989 c 175 § 121; 1985 c 315 § 8;
1972 ex.s. c 43 § 34.]
Effective date—1989 c 175: See note following RCW 34.05.010.
51.48.150
51.48.150 Notice of assessment for employer's
default in payments—Notice to withhold and deliver
property due employer. The director or the director's designee is hereby authorized to issue to any person, firm, corporation, municipal corporation, political subdivision of the
state, a public corporation, or any agency of the state, a notice
and order to withhold and deliver property of any kind whatsoever when he or she has reason to believe that there is in the
possession of such person, firm, corporation, municipal corporation, political subdivision of the state, public corporation, or any agency of the state, property which is or shall
become due, owing, or belonging to any employer upon
whom a notice of assessment has been served by the department for payments due to the state fund. The effect of a notice
and order to withhold and deliver shall be continuous from
the date such notice and order to withhold and deliver is first
made until the liability out of which such notice and order to
withhold and deliver arose is satisfied or becomes unenforceable because of lapse of time. The department shall release
the notice and order to withhold and deliver when the liability
out of which the notice and order to withhold and deliver
arose is satisfied or becomes unenforceable by reason of
lapse of time and shall notify the person against whom the
notice and order to withhold and deliver was made that such
notice and order to withhold and deliver has been released.
The notice and order to withhold and deliver shall be
served by the sheriff of the county or by the sheriff's deputy,
by certified mail, return receipt requested, or by any duly
authorized representatives of the director. Any person, firm,
corporation, municipal corporation, political subdivision of
the state, public corporation or any agency of the state upon
whom service has been made is hereby required to answer the
notice within twenty days exclusive of the day of service,
under oath and in writing, and shall make true answers to the
matters inquired of in the notice and order to withhold and
deliver. In the event there is in the possession of the party
named and served with a notice and order to withhold and
deliver, any property which may be subject to the claim of the
department, such property shall be delivered forthwith to the
director or the director's duly authorized representative upon
service of the notice to withhold and deliver which will be
held in trust by the director for application on the employer's
indebtedness to the department, or for return without interest,
in accordance with a final determination of a petition for
review, or in the alternative such party shall furnish a good
and sufficient surety bond satisfactory to the director conditioned upon final determination of liability. Should any party
served and named in the notice to withhold and deliver fail to
make answer to such notice and order to withhold and
(2004 Ed.)
51.48.180
deliver, within the time prescribed herein, it shall be lawful
for the court, after the time to answer such order has expired,
to render judgment by default against the party named in the
notice to withhold and deliver for the full amount claimed by
the director in the notice to withhold and deliver together
with costs. In the event that a notice to withhold and deliver
is served upon an employer and the property found to be subject thereto is wages, then the employer shall be entitled to
assert in the answer to all exemptions provided for by chapter
6.27 RCW to which the wage earner may be entitled. [1995
c 160 § 6; 1987 c 442 § 1119; 1986 c 9 § 11; 1972 ex.s. c 43
§ 35.]
51.48.160
51.48.160 Revocation of certificate of coverage for
failure to pay warrants or taxes. If any warrant issued
under this title is not paid within thirty days after it has been
filed with the clerk of the superior court, or if any employer is
delinquent, for three consecutive reporting periods, in the
transmission to the department of taxes due, the department
may, by order issued under its official seal, revoke the certificate of coverage of the employer against whom the warrant
was issued; and if the order is entered, a copy thereof shall be
posted in a conspicuous place at the main entrance to the
employer's place of business and shall remain posted until
such time as the warrant has been paid. Any certificate so
revoked shall not be reinstated, nor shall a new certificate of
coverage be issued to the employer, until the amount due on
the warrant has been paid, or provisions for payment satisfactory to the department have been entered, and until the taxpayer has deposited with the department such security for
payment of any taxes, increases, and penalties, due or which
may become due in an amount and under such terms and conditions as the department may require, but the amount of the
security shall not be greater than one-half the estimated average annual taxes of the employer. [1986 c 9 § 13.]
51.48.170
51.48.170 Emergency assessment and collection of
taxes. If the director or the director's designee has reason to
believe that an employer is insolvent or about to cease business, leave the state, or remove or dissipate assets out of
which taxes or penalties might be satisfied, and the collection
of any taxes accrued will be jeopardized by delaying collection, the director or the director's designee may make an
immediate assessment thereof and may proceed to enforce
collection immediately under the terms of RCW 51.48.180
and 51.48.190, but interest and penalties shall not begin to
accrue upon any taxes until the date when such taxes would
normally have become delinquent. [1986 c 9 § 14.]
51.48.180
51.48.180 Emergency assessment and collection of
taxes—Distraint and sale of property. If the amount of
taxes, interest, or penalties assessed by the director or the
director's designee by order and notice of assessment pursuant to RCW 51.48.170 is not paid within ten days after the
service or mailing of the order and notice of assessment, the
director or the director's designee may collect the amount
stated in said assessment by the distraint, seizure, and sale of
the property, goods, chattels, and effects of the delinquent
employer. There shall be exempt from distraint and sale
[Title 51 RCW—page 73]
51.48.190
Title 51 RCW: Industrial Insurance
under this section such goods and property as are exempt
from execution under the laws of this state. [1986 c 9 § 15.]
51.48.190
51.48.190 Emergency assessment and collection of
taxes—Conduct of sale. The director or the director's designee, upon making a distraint pursuant to RCW 51.48.170 and
51.48.180, shall seize the property and shall make an inventory of the property distrained, a copy of which shall be
mailed to the owner of such property or personally delivered
to the owner, and shall specify the time and place when the
property shall be sold. A notice specifying the property to be
sold and the time and place of sale shall be posted in at least
two public places in the county wherein the seizure has been
made. The time of sale shall be not less than twenty days
from the date of posting of such notices. The sale may be
adjourned from time to time at the discretion of the director
or the director's designee, but not for a time to exceed in all
sixty days. No sale shall take place if an appeal is pending.
The sale shall be conducted by the director or the director's
designee who shall proceed to sell such property by parcel or
by lot at a public auction, and who may set a minimum price
to include the expenses of making a levy and of advertising
the sale, and if the amount bid for such property at the sale is
not equal to the minimum price so fixed, the director or the
director's designee may declare such property to be purchased by the department for such minimum price. In such
event the delinquent account shall be credited with the
amount for which the property has been sold. Property
acquired by the department as herein prescribed may be sold
by the director or the director's designee at public or private
sale, and the amount realized shall be placed in the state of
Washington industrial insurance fund.
In all cases of sale, as aforesaid, the director or the director's designee shall issue a bill of sale or a deed to the purchaser and the bill of sale or deed shall be prima facie evidence of the right of the director or the director's designee to
make such sale and conclusive evidence of the regularity of
the proceeding in making the sale, and shall transfer to the
purchaser all right, title, and interest of the delinquent
employer in said property. The proceeds of any such sale,
except in those cases wherein the property has been acquired
by the department, shall be first applied by the director or the
director's designee in satisfaction of the delinquent account,
and out of any sum received in excess of the amount of delinquent taxes, interest, and penalties the industrial insurance
fund shall be reimbursed for the costs of distraint and sale.
Any excess which shall thereafter remain in the hands of the
director or the director's designee shall be refunded to the
delinquent employer. Sums so refundable to a delinquent
employer may be subject to seizure or distraint in the hands
of the director or the director's designee by any other taxing
authority of the state or its political subdivisions. [1986 c 9 §
16.]
51.48.200
51.48.200 Search and seizure of property to satisfy
tax warrant or assessment—Issuance and execution of
search warrant. (1) When there is probable cause to believe
that there is property within this state not otherwise exempt
from process or execution in the possession or control of any
employer against whom a tax warrant issued under RCW
[Title 51 RCW—page 74]
51.48.140 has been filed which remains unsatisfied, or an
assessment issued pursuant to RCW 51.48.170, any judge of
the superior court or district court in the county in which such
property is located may, upon the request of the sheriff or
agent of the department authorized to collect taxes, issue a
warrant directed to the officers commanding the search for
and seizure of the property described in the request for warrant.
(2) The procedure for the issuance, and execution and
return of the warrant authorized by this section and for return
of any property seized shall be the criminal rules of the superior court and the district court.
(3) The sheriff or agent of the department shall levy execution upon property seized under this section as provided in
RCW 51.48.220 and 51.48.230.
(4) This section does not require the application for or
issuance of any warrant not otherwise required by law. [1986
c 9 § 17.]
51.48.210
51.48.210 Delinquent taxes. If payment of any tax due
is not received by the department by the due date, there shall
be assessed a penalty of five percent of the amount of the tax
for the first month or part thereof of delinquency; there shall
be assessed a total penalty of ten percent of the amount of the
tax for the second month or part thereof of delinquency; and
there shall be assessed a total penalty of twenty percent of the
amount of the tax for the third month or part thereof of delinquency. No penalty so added may be less than ten dollars. If
a warrant is issued by the department for the collection of
taxes, increases, and penalties, there shall be added thereto a
penalty of five percent of the amount of the tax, but not less
than five dollars nor greater than one hundred dollars. In
addition, delinquent taxes shall bear interest at the rate of one
percent of the delinquent amount per month or fraction
thereof from and after the due date until payment, increases,
and penalties are received by the department. [1987 c 111 §
8; 1986 c 9 § 18.]
Conflict with federal requirements—Severability—Effective date—
1987 c 111: See notes following RCW 50.12.220.
51.48.220 Order of execution upon property—Procedure—Sale. The department may issue an order of execution, pursuant to a filed warrant, under its official seal
directed to the sheriff of the county in which the warrant has
been filed, commanding the sheriff to levy upon and sell the
real and/or personal property of the taxpayer found within the
county, or so much thereof as may be necessary, for the payment of the amount of the warrant, plus the cost of executing
the warrant, and return the warrant to the department and pay
to it the money collected by virtue thereof within sixty days
after the receipt of the warrant. The sheriff shall thereupon
proceed upon the same in all respects and with like effect as
prescribed by law with respect to execution or other process
issued against rights or property upon judgments of the superior court.
The sheriff shall be entitled to fees as provided by law
for services in levying execution on a superior court judgment and the clerk shall be entitled to a filing fee as provided
by law, which shall be added to the amount of the warrant.
The proceeds received from any sale shall be credited
upon the amount due under the warrant and when the final
51.48.220
(2004 Ed.)
Penalties
amount due is received, together with interest, penalties, and
costs, the judgment docket shall show the claim for taxes to
be satisfied and the clerk of the court shall so note upon the
docket. Any surplus received from any sale of property shall
be paid to the taxpayer or to any lien holder entitled thereto.
If the return on the warrant shows that the same has not been
satisfied in full, the amount of the deficiency shall remain the
same as a judgment against the taxpayer which may be collected in the same manner as the original amount of the warrant. [1986 c 9 § 21.]
51.48.230
51.48.230 Order of execution upon property—
Enforcement. In the discretion of the department, an order
of execution of like terms, force, and effect may be issued
and directed to any agent of the department authorized to collect taxes, and in the execution thereof such agent shall have
all the powers conferred by law upon sheriffs, but shall not be
entitled to any fee or compensation in excess of the actual
expenses paid in the performance of such duty, which shall
be added to the amount of the warrant. [1986 c 9 § 22.]
51.48.240
51.48.240 Agents and employees of department not
personally liable—Conditions. When recovery is had in
any suit or proceeding against an officer, agent, or employee
of the department for any act done by that person or for the
recovery of any money exacted by or paid to that person and
by that person paid over to the department, in the performance of the person's official duty, and the court certifies that
there was probable cause for the act done by such officer,
agent, or employee, or that he or she acted under the direction
of the department or an officer thereof, no execution shall
issue against such officer, agent, or employee, but the amount
so recovered shall, upon final judgment, be paid by the
department as an expense of operation. [1986 c 9 § 23.]
51.48.250
51.48.250 Liability of persons wilfully obtaining
erroneous payments—Civil penalties. (1) No person, firm,
corporation, partnership, association, agency, institution, or
other legal entity, but not including an industrially injured
recipient of health service, shall, on behalf of himself or others, obtain or attempt to obtain payments under this chapter in
a greater amount than that to which entitled by means of:
(a) A wilful false statement;
(b) Wilful misrepresentation, or by concealment of any
material facts; or
(c) Other fraudulent scheme or device, including, but not
limited to:
(i) Billing for services, drugs, supplies, or equipment that
were not furnished, of lower quality, or a substitution or misrepresentation of items billed; or
(ii) Repeated billing for purportedly covered items,
which were not in fact so covered.
(2) Any person, firm, corporation, partnership, association, agency, institution, or other legal entity knowingly violating any of the provisions of subsection (1) of this section
shall be liable for repayment of any excess payments
received, plus interest on the amount of the excess benefits or
payments at the rate of one percent each month for the period
from the date upon which payment was made to the date upon
which repayment is made to the state. Such person or other
(2004 Ed.)
51.48.280
entity shall further, in addition to any other penalties provided by law, be subject to civil penalties. The director of the
department of labor and industries may assess civil penalties
in an amount not to exceed the greater of one thousand dollars or three times the amount of such excess benefits or payments: PROVIDED, That these civil penalties shall not
apply to any acts or omissions occurring prior to April 1,
1986.
(3) A criminal action need not be brought against a person, firm, corporation, partnership, association, agency, institution, or other legal entity for that person or entity to be civilly liable under this section.
(4) Civil penalties shall be deposited in the general fund
upon their receipt. [1986 c 200 § 4.]
51.48.260
51.48.260 Liability of persons unintentionally obtaining erroneous payments. Any person, firm, corporation,
partnership, association, agency, institution, or other legal
entity, but not including an industrially injured recipient of
health services, that, without intent to violate this chapter,
obtains payments under Title 51 RCW to which such person
or entity is not entitled, shall be liable for: (1) Any excess
payments received; and (2) interest on the amount of excess
payments at the rate of one percent each month for the period
from the date upon which payment was made to the date upon
which repayment is made to the state. [1986 c 200 § 3.]
51.48.270
51.48.270 Criminal liability of persons making false
statements or concealing information. Any person, firm,
corporation, partnership, association, agency, institution, or
other legal entity, but not including an injured worker or beneficiary, that:
(1) Knowingly makes or causes to be made any false
statement or representation of a material fact in any application for any payment under this title; or
(2) At any time knowingly makes or causes to be made
any false statement or representation of a material fact for use
in determining rights to such payment, or knowingly falsifies,
conceals, or covers up by any trick, scheme, or device a material fact in connection with such application or payment; or
(3) Having knowledge of the occurrence of any event
affecting (a) the initial or continued right to any payment, or
(b) the initial or continued right to any such payment of any
other individual in whose behalf he or she has applied for or
is receiving such payment, conceals or fails to disclose such
event with an intent fraudulently to secure such payment
either in a greater amount or quantity than is due or when no
such payment is authorized;
shall be guilty of a class C felony: PROVIDED, That the
fine, if imposed, shall not be in an amount more than twentyfive thousand dollars, except as authorized by RCW
9A.20.030. [1987 c 470 § 2; 1986 c 200 § 5.]
51.48.280
51.48.280 Kickbacks, bribes, and rebates—Representation fees—Criminal liability—Exceptions. (1) It is a
class C felony for any person, firm, corporation, partnership,
association, agency, institution, or other legal entity to solicit
or receive any remuneration (including any kickback, bribe,
or rebate) directly or indirectly, overtly or covertly, in cash or
in kind:
[Title 51 RCW—page 75]
51.48.290
Title 51 RCW: Industrial Insurance
(a) In return for referring an individual to a person for the
furnishing or arranging for the furnishing of any item or service for which payment may be made in whole or in part
under this chapter; or
(b) In return for purchasing, leasing, ordering, or arranging for or recommending purchasing, leasing, or ordering any
goods, facility, service, or item for which payment may be
made in whole or in part under this chapter.
(2) It is a class C felony for any person, firm, corporation, partnership, association, agency, institution, or other
legal entity to offer or pay any remuneration (including any
kickback, bribe, or rebate) directly or indirectly, overtly or
covertly, in cash or in kind to any person to induce such person:
(a) To refer an individual to a person for the furnishing or
arranging for the furnishing of any item or service for which
payment may be made, in whole or in part, under this chapter;
or
(b) To purchase, lease, order, or arrange for or recommend purchasing, leasing, or ordering any goods, facility,
service, or item for which payment may be made in whole or
in part under this chapter.
(3) A health services provider who (a) provides a health
care service to a claimant, while acting as the claimant's representative for the purpose of obtaining authorization for the
services, and (b) charges a percentage of the claimant's benefits or other fee for acting as the claimant's representative
under this title is guilty of a gross misdemeanor.
(4) Any fine imposed as a result of a violation of subsection (1), (2), or (3) of this section shall not be in an amount
more than twenty-five thousand dollars, except as authorized
by RCW 9A.20.030.
(5) Subsections (1) and (2) of this section shall not apply
to:
(a) A discount or other reduction in price obtained by a
provider of services or other entity under this chapter if the
reduction in price is properly disclosed and appropriately
reflected in the costs claimed or charges made by the provider
or entity under this chapter; and
(b) Any amount paid by an employer to an employee
(who has a bona fide employment relationship with such
employer) for employment in the provision of covered items
or services.
(6) Subsections (1) and (2) of this section, if applicable
to the conduct involved, shall supersede the criminal provisions of chapter 19.68 RCW, but shall not preclude administrative proceedings authorized by chapter 19.68 RCW. [2003
c 53 § 284; 1997 c 336 § 1; 1986 c 200 § 6.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
51.48.290
51.48.290 Written verification by health services
providers. The director of the department of labor and
industries may by rule require that any application, statement,
or form filled out by any health services provider under this
title shall contain or be verified by a written statement that it
is made under the penalties of perjury and such declaration
shall be in lieu of any oath otherwise required, and each such
paper shall in such event so state. The making or subscribing
of any such papers or forms containing any false or mislead[Title 51 RCW—page 76]
ing information may be prosecuted and punished under chapter 9A.72 RCW. [1986 c 200 § 7.]
Chapter 51.52
Chapter 51.52 RCW
APPEALS
Sections
51.52.010
51.52.020
51.52.030
51.52.040
51.52.050
51.52.060
51.52.070
51.52.075
51.52.080
51.52.090
51.52.095
51.52.100
51.52.102
51.52.104
51.52.106
51.52.110
51.52.112
51.52.113
51.52.115
51.52.120
51.52.130
51.52.132
51.52.135
51.52.140
51.52.150
51.52.160
51.52.200
Board of industrial insurance appeals.
Board—Rule-making power.
Board—Expenses.
Board—Removal of member.
Service of departmental action—Demand for repayment—
Reconsideration or appeal.
Notice of appeal—Time—Cross-appeal—Departmental
options.
Contents of notice—Transmittal of record.
Appeal from order terminating provider's authority to provide
services—Department petition for order immediately suspending provider's eligibility to participate.
Appeal to board denied, when.
Appeal to board deemed granted, when.
Conference for disposal of matters involved in appeal—Mediation of disputes.
Proceedings before board—Contempt.
Hearing the appeal—Dismissal—Evidence—Continuances.
Industrial appeals judge—Recommended decision and
order—Petition for review—Finality of order.
Review of decision and order.
Court appeal—Taking the appeal.
Court appeal—Payment of taxes, penalties, and interest
required.
Collection of tax or penalty may not be enjoined.
Court appeal—Procedure at trial—Burden of proof.
Attorney's fee before department or board—Unlawful attorney's fees.
Attorney and witness fees in court appeal.
Unlawful attorney's fees.
Worker or beneficiary entitled to interest on award—Rate.
Rules of practice—Duties of attorney general—Supreme court
appeal.
Costs on appeals.
Publication and indexing of significant decisions.
Exception—Employers as parties to actions relating to compensation or assistance for victims of crimes.
51.52.010
51.52.010 Board of industrial insurance appeals.
(Expires June 30, 2007.) There shall be a "board of industrial insurance appeals," hereinafter called the "board," consisting of three members appointed by the governor, with the
advice and consent of the senate, as hereinafter provided.
One shall be a representative of the public and a lawyer,
appointed from a mutually agreed to list of not less than three
active or judicial members of the Washington state bar association, submitted to the governor by the two organizations
defined below, and such member shall be the chairperson of
said board. The second member shall be a representative of
the majority of workers engaged in employment under this
title and selected from a list of not less than three names submitted to the governor by an organization, statewide in scope,
which through its affiliates embraces a cross section and a
majority of the organized labor of the state. The third member shall be a representative of employers under this title, and
appointed from a list of at least three names submitted to the
governor by a recognized statewide organization of employers, representing a majority of employers. The initial terms
of office of the members of the board shall be for six, four,
and two years respectively. Thereafter all terms shall be for
a period of six years. Each member of the board shall be eligible for reappointment and shall hold office until his or her
successor is appointed and qualified. In the event of a
(2004 Ed.)
Appeals
vacancy the governor is authorized to appoint a successor to
fill the unexpired term of his or her predecessor. All appointments to the board shall be made in conformity with the foregoing plan. In the event a board member becomes incapacitated in excess of thirty days either due to his or her illness or
that of an immediate family member as determined by a
request for family leave or as certified by the affected member's treating physician or licensed advanced registered nurse
practitioner, the governor shall appoint an acting member to
serve pro tem. Such an appointment shall be made in conformity with the foregoing plan, except that the list of candidates
shall be submitted to the governor not more than fifteen days
after the affected organizations are notified of the incapacity
and the governor shall make the appointment within fifteen
days after the list is submitted. The temporary member shall
serve until such time as the affected member is able to reassume his or her duties by returning from requested family
leave or as determined by the treating physician or licensed
advanced registered nurse practitioner or until the affected
member's term expires, whichever occurs first. Whenever
the workload of the board and its orderly and expeditious disposition shall necessitate, the governor may appoint two
additional pro-tem members in addition to the regular members. Such appointments shall be for a definite period of
time, and shall be made from lists submitted respectively by
labor and industry as in the case of regular members. One
pro-tem member shall be a representative of labor and one
shall be a representative of industry. Members shall devote
their entire time to the duties of the board and shall receive
for their services a salary as fixed by the governor in accordance with the provisions of RCW 43.03.040 which shall be
in addition to travel expenses in accordance with RCW
43.03.050 and 43.03.060 as now existing or hereafter
amended. Headquarters for the board shall be located in
Olympia. The board shall adopt a seal which shall be judicially recognized. [2004 c 65 § 15; 2003 c 224 § 1; 1999 c
149 § 1; 1981 c 338 § 10; 1977 ex.s. c 350 § 74; 1975-'76 2nd
ex.s. c 34 § 151; 1971 ex.s. c 289 § 68; 1965 ex.s. c 165 § 3;
1961 c 307 § 8; 1961 c 23 § 51.52.010. Prior: 1951 c 225 §
1; prior: 1949 c 219 § 2; Rem. Supp. 1949 § 10837-1.]
Report to legislature—Effective date—Expiration date—Severability—2004 c 65: See notes following RCW 51.04.030.
Effective date—Severability—1975-'76 2nd ex.s. c 34: See notes following RCW 2.08.115.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.52.010
51.52.010 Board of industrial insurance appeals.
(Effective June 30, 2007.) There shall be a "board of industrial insurance appeals," hereinafter called the "board," consisting of three members appointed by the governor, with the
advice and consent of the senate, as hereinafter provided.
One shall be a representative of the public and a lawyer,
appointed from a mutually agreed to list of not less than three
active or judicial members of the Washington state bar association, submitted to the governor by the two organizations
defined below, and such member shall be the chairperson of
said board. The second member shall be a representative of
the majority of workers engaged in employment under this
title and selected from a list of not less than three names submitted to the governor by an organization, statewide in scope,
(2004 Ed.)
51.52.020
which through its affiliates embraces a cross section and a
majority of the organized labor of the state. The third member shall be a representative of employers under this title, and
appointed from a list of at least three names submitted to the
governor by a recognized statewide organization of employers, representing a majority of employers. The initial terms
of office of the members of the board shall be for six, four,
and two years respectively. Thereafter all terms shall be for
a period of six years. Each member of the board shall be eligible for reappointment and shall hold office until his or her
successor is appointed and qualified. In the event of a
vacancy the governor is authorized to appoint a successor to
fill the unexpired term of his or her predecessor. All appointments to the board shall be made in conformity with the foregoing plan. In the event a board member becomes incapacitated in excess of thirty days either due to his or her illness or
that of an immediate family member as determined by a
request for family leave or as certified by the affected member's treating physician, the governor shall appoint an acting
member to serve pro tem. Such an appointment shall be
made in conformity with the foregoing plan, except that the
list of candidates shall be submitted to the governor not more
than fifteen days after the affected organizations are notified
of the incapacity and the governor shall make the appointment within fifteen days after the list is submitted. The temporary member shall serve until such time as the affected
member is able to reassume his or her duties by returning
from requested family leave or as determined by the treating
physician or until the affected member's term expires, whichever occurs first. Whenever the workload of the board and its
orderly and expeditious disposition shall necessitate, the governor may appoint two additional pro-tem members in addition to the regular members. Such appointments shall be for
a definite period of time, and shall be made from lists submitted respectively by labor and industry as in the case of regular
members. One pro-tem member shall be a representative of
labor and one shall be a representative of industry. Members
shall devote their entire time to the duties of the board and
shall receive for their services a salary as fixed by the governor in accordance with the provisions of RCW 43.03.040
which shall be in addition to travel expenses in accordance
with RCW 43.03.050 and 43.03.060 as now existing or hereafter amended. Headquarters for the board shall be located in
Olympia. The board shall adopt a seal which shall be judicially recognized. [2003 c 224 § 1; 1999 c 149 § 1; 1981 c
338 § 10; 1977 ex.s. c 350 § 74; 1975-'76 2nd ex.s. c 34 §
151; 1971 ex.s. c 289 § 68; 1965 ex.s. c 165 § 3; 1961 c 307
§ 8; 1961 c 23 § 51.52.010. Prior: 1951 c 225 § 1; prior:
1949 c 219 § 2; Rem. Supp. 1949 § 10837-1.]
Effective date—Severability—1975-'76 2nd ex.s. c 34: See notes following RCW 2.08.115.
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.52.020
51.52.020 Board—Rule-making power. The board
may make rules and regulations concerning its functions and
procedure, which shall have the force and effect of law until
altered, repealed, or set aside by the board: PROVIDED,
That the board may not delegate to any other person its duties
of interpreting the testimony and making the final decision
and order on appeal cases. All rules and regulations adopted
[Title 51 RCW—page 77]
51.52.030
Title 51 RCW: Industrial Insurance
by the board shall be printed and copies thereof shall be
readily available to the public. [1961 c 23 § 51.52.020. Prior:
1951 c 225 § 2; prior: 1949 c 219 § 3, part; Rem. Supp. 1949
§ 10837-2, part.]
51.52.030
51.52.030 Board—Expenses. The board may incur
such expenses as are reasonably necessary to carry out its
duties hereunder, which expenses shall be paid, one-half
from the accident fund and one-half from the medical aid
fund upon vouchers approved by the board. [1961 c 23 §
51.52.030. Prior: 1951 c 225 § 3; prior: 1949 c 219 § 3, part;
Rem. Supp. 1949 § 10837-2, part.]
51.52.040
51.52.040 Board—Removal of member. Any member
of the board may be removed for inefficiency, malfeasance or
misfeasance in office, upon specific written charges filed by
the governor, who shall transmit the original of such written
charges to the chief justice of the supreme court and a copy
thereof to the member accused. The chief justice shall thereupon designate a special tribunal composed of three judges of
the superior court to hear and adjudicate the charges. Such
tribunal shall fix the time, place and procedure for the hearing, and the hearing shall be public. The decision of such tribunal shall be final and not subject to review. [1961 c 23 §
51.52.040. Prior: 1951 c 225 § 4; prior: 1949 c 219 § 4; Rem.
Supp. 1949 § 10837-3.]
51.52.050
51.52.050 Service of departmental action—Demand
for repayment—Reconsideration or appeal. Whenever
the department has made any order, decision, or award, it
shall promptly serve the worker, beneficiary, employer, or
other person affected thereby, with a copy thereof by mail,
which shall be addressed to such person at his or her last
known address as shown by the records of the department.
The copy, in case the same is a final order, decision, or award,
shall bear on the same side of the same page on which is
found the amount of the award, a statement, set in black faced
type of at least ten point body or size, that such final order,
decision, or award shall become final within sixty days from
the date the order is communicated to the parties unless a
written request for reconsideration is filed with the department of labor and industries, Olympia, or an appeal is filed
with the board of industrial insurance appeals, Olympia:
PROVIDED, That a department order or decision making
demand, whether with or without penalty, for repayment of
sums paid to a provider of medical, dental, vocational, or
other health services rendered to an industrially injured
worker, shall state that such order or decision shall become
final within twenty days from the date the order or decision is
communicated to the parties unless a written request for
reconsideration is filed with the department of labor and
industries, Olympia, or an appeal is filed with the board of
industrial insurance appeals, Olympia.
Whenever the department has taken any action or made
any decision relating to any phase of the administration of
this title the worker, beneficiary, employer, or other person
aggrieved thereby may request reconsideration of the department, or may appeal to the board. In an appeal before the
board, the appellant shall have the burden of proceeding with
the evidence to establish a prima facie case for the relief
[Title 51 RCW—page 78]
sought in such appeal: PROVIDED, That in an appeal from
an order of the department that alleges willful misrepresentation, the department or self-insured employer shall initially
introduce all evidence in its case in chief. Any such person
aggrieved by the decision and order of the board may thereafter appeal to the superior court, as prescribed in this chapter.
[2004 c 243 § 8; 1987 c 151 § 1; 1986 c 200 § 10; 1985 c 315
§ 9; 1982 c 109 § 4; 1977 ex.s. c 350 § 75; 1975 1st ex.s. c 58
§ 1; 1961 c 23 § 51.52.050. Prior: 1957 c 70 § 55; 1951 c 225
§ 5; prior: (i) 1947 c 281 § 1, part; 1943 c 210 § 1, part; 1939
c 41 § 1, part; 1937 c 211 § 1, part; 1927 c 310 § 1, part; 1921
c 182 § 1, part; 1919 c 131 § 1, part; 1911 c 74 § 2, part; Rem.
Supp. 1947 § 7674, part. (ii) 1947 c 247 § 1, part; 1911 c 74
§ 20, part; Rem. Supp. 1947 § 7676e, part. (iii) 1949 c 219 §
6, part; 1943 c 280 § 1, part; 1931 c 90 § 1, part; 1929 c 132
§ 6, part; 1927 c 310 § 8, part; 1911 c 74 § 20, part; Rem.
Supp. 1949 § 7697, part. (iv) 1923 c 136 § 7, part; 1921 c 182
§ 10, part; 1917 c 29 § 3, part; RRS § 7712, part. (v) 1917 c
29 § 11; RRS § 7720. (vi) 1939 c 50 § 1, part; 1927 c 310 §
9, part; 1921 c 182 § 12, part; 1919 c 129 § 5, part; 1917 c 28
§ 15, part; RRS § 7724, part.]
Adoption of rules—2004 c 243: See note following RCW 51.08.177.
51.52.060
51.52.060 Notice of appeal—Time—Cross-appeal—
Departmental options. (1)(a) Except as otherwise specifically provided in this section, a worker, beneficiary,
employer, health services provider, or other person aggrieved
by an order, decision, or award of the department must,
before he or she appeals to the courts, file with the board and
the director, by mail or personally, within sixty days from the
day on which a copy of the order, decision, or award was
communicated to such person, a notice of appeal to the board.
However, a health services provider or other person
aggrieved by a department order or decision making demand,
whether with or without penalty, solely for repayment of
sums paid to a provider of medical, dental, vocational, or
other health services rendered to an industrially injured
worker must, before he or she appeals to the courts, file with
the board and the director, by mail or personally, within
twenty days from the day on which a copy of the order or
decision was communicated to the health services provider
upon whom the department order or decision was served, a
notice of appeal to the board.
(b) Failure to file a notice of appeal with both the board
and the department shall not be grounds for denying the
appeal if the notice of appeal is filed with either the board or
the department.
(2) Within ten days of the date on which an appeal has
been granted by the board, the board shall notify the other
interested parties to the appeal of the receipt of the appeal and
shall forward a copy of the notice of appeal to the other interested parties. Within twenty days of the receipt of such notice
of the board, the worker or the employer may file with the
board a cross-appeal from the order of the department from
which the original appeal was taken.
(3) If within the time limited for filing a notice of appeal
to the board from an order, decision, or award of the department, the department directs the submission of further evidence or the investigation of any further fact, the time for filing the notice of appeal shall not commence to run until the
(2004 Ed.)
Appeals
person has been advised in writing of the final decision of the
department in the matter. In the event the department directs
the submission of further evidence or the investigation of any
further fact, as provided in this section, the department shall
render a final order, decision, or award within ninety days
from the date further submission of evidence or investigation
of further fact is ordered which time period may be extended
by the department for good cause stated in writing to all interested parties for an additional ninety days.
(4) The department, either within the time limited for
appeal, or within thirty days after receiving a notice of
appeal, may:
(a) Modify, reverse, or change any order, decision, or
award; or
(b)(i) Except as provided in (b)(ii) of this subsection,
hold an order, decision, or award in abeyance for a period of
ninety days which time period may be extended by the
department for good cause stated in writing to all interested
parties for an additional ninety days pending further investigation in light of the allegations of the notice of appeal; or
(ii) Hold an order, decision, or award issued under RCW
51.32.160 in abeyance for a period not to exceed ninety days
from the date of receipt of an application under RCW
51.32.160. The department may extend the ninety-day time
period for an additional sixty days for good cause.
For purposes of this subsection, good cause includes
delay that results from conduct of the claimant that is subject
to sanction under RCW 51.32.110.
The board shall deny the appeal upon the issuance of an
order under (b)(i) or (ii) of this subsection holding an earlier
order, decision, or award in abeyance, without prejudice to
the appellant's right to appeal from any subsequent determinative order issued by the department.
This subsection (4)(b) does not apply to applications
deemed granted under RCW 51.32.160.
(5) An employer shall have the right to appeal an application deemed granted under RCW 51.32.160 on the same
basis as any other application adjudicated pursuant to that
section.
(6) A provision of this section shall not be deemed to
change, alter, or modify the practice or procedure of the
department for the payment of awards pending appeal. [1995
c 253 § 1; 1995 c 199 § 7; 1986 c 200 § 11; 1977 ex.s. c 350
§ 76; 1975 1st ex.s. c 58 § 2; 1963 c 148 § 1; 1961 c 274 § 8;
1961 c 23 § 51.52.060. Prior: 1957 c 70 § 56; 1951 c 225 §
6; prior: 1949 c 219 §§ 1, part, 6, part; 1947 c 246 § 1, part;
1943 c 280 § 1, part; 1931 c 90 § 1, part; 1929 c 132 §§ 2,
part, 6, part; 1927 c 310 §§ 4, part, 8, part; 1923 c 136 § 2,
part; 1919 c 134 § 4, part; 1917 c 28 § 1, part; 1913 c 148 § 1,
part; 1911 c 74 §§ 5, part, 20, part; Rem Supp. 1949 §§ 7679,
part, 7697, part.]
Reviser's note: This section was amended by 1995 c 199 § 7 and by
1995 c 253 § 1, each without reference to the other. Both amendments are
incorporated in the publication of this section pursuant to RCW 1.12.025(2).
For rule of construction, see RCW 1.12.025(1).
Severability—1995 c 199: See note following RCW 51.12.120.
51.52.070
51.52.070 Contents of notice—Transmittal of record.
The notice of appeal to the board shall set forth in full detail
the grounds upon which the person appealing considers such
order, decision, or award is unjust or unlawful, and shall
(2004 Ed.)
51.52.090
include every issue to be considered by the board, and it must
contain a detailed statement of facts upon which such worker,
beneficiary, employer, or other person relies in support
thereof. The worker, beneficiary, employer, or other person
shall be deemed to have waived all objections or irregularities concerning the matter on which such appeal is taken
other than those specifically set forth in such notice of appeal
or appearing in the records of the department. The department shall promptly transmit its original record, or a legible
copy thereof produced by mechanical, photographic, or electronic means, in such matter to the board. [1977 ex.s. c 350 §
77; 1975 1st ex.s. c 224 § 18; 1975 1st ex.s. c 58 § 3; 1961 c
23 § 51.52.070. Prior: 1957 c 70 § 57; 1951 c 225 § 7; prior:
1949 c 219 § 6, part; 1943 c 280 § 1, part; 1931 c 90 § 1, part;
1929 c 132 § 6, part; 1927 c 310 § 8, part; 1911 c 74 § 20,
part; Rem. Supp. 1949 § 7697, part.]
Effective date—1975 1st ex.s. c 224: See note following RCW
51.04.110.
51.52.075
51.52.075 Appeal from order terminating provider's
authority to provide services—Department petition for
order immediately suspending provider's eligibility to
participate. When a provider files with the board an appeal
from an order terminating the provider's authority to provide
services related to the treatment of industrially injured workers, the department may petition the board for an order immediately suspending the provider's eligibility to participate as a
provider of services to industrially injured workers under this
title pending the final disposition of the appeal by the board.
The board shall grant the petition if it determines that there is
good cause to believe that workers covered under this title
may suffer serious physical or mental harm if the petition is
not granted. The board shall expedite the hearing of the
department's petition under this section. [2004 c 259 § 1.]
51.52.080
51.52.080 Appeal to board denied, when. If the notice
of appeal raises no issue or issues of fact and the board finds
that the department properly and lawfully decided all matters
raised by such appeal it may, without further hearing, deny
the same and confirm the department's decision or award, or
if the department's record sustains the contention of the person appealing to the board, it may, without further hearing,
allow the relief asked in such appeal; otherwise, it shall grant
the appeal. [1971 ex.s. c 289 § 69; 1963 c 148 § 2; 1961 c 23
§ 51.52.080. Prior: 1957 c 70 § 58; 1951 c 225 § 8; prior:
1949 c 219 § 6, part; 1943 c 280 § 1, part; 1931 c 90 § 1, part;
1929 c 132 § 6, part; 1927 c 310 § 8, part; 1911 c 74 § 20,
part; Rem. Supp. 1949 § 7697, part.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.52.090
51.52.090 Appeal to board deemed granted, when. If
the appeal is not denied within thirty days after the notice is
filed with the board, the appeal shall be deemed to have been
granted: PROVIDED, That the board may extend the time
within which it may act upon such appeal, not exceeding
thirty days. [1971 ex.s. c 289 § 70; 1961 c 23 § 51.52.090.
Prior: 1957 c 70 § 59; 1951 c 225 § 9; prior: 1949 c 219 § 6,
part; 1943 c 280 § 1, part; 1931 c 90 § 1, part; 1929 c 132 § 6,
part; 1927 c 310 § 8, part; 1911 c 74 § 20, part; Rem. Supp.
1949 § 7697, part.]
[Title 51 RCW—page 79]
51.52.095
Title 51 RCW: Industrial Insurance
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.52.095
51.52.095 Conference for disposal of matters
involved in appeal—Mediation of disputes. (1) The board,
upon request of the worker, beneficiary, or employer, or upon
its own motion, may direct all parties interested in an appeal,
together with their attorneys, if any, to appear before it, a
member of the board, or an authorized industrial appeals
judge, for a conference for the purpose of determining the
feasibility of settlement, the simplification of issues of law
and fact, the necessity of amendments to the notice of appeal
or other pleadings, the possibility of obtaining admissions of
fact and of documents which will avoid unnecessary proof,
the limitation of the number of expert witnesses, and such
other matters as may aid in the disposition of the appeal. Such
conference may be held prior to the hearing, or it may be held
during the hearing, at the discretion of the board member or
industrial appeals judge conducting the same, in which case
the hearing will be recessed for such conference. Following
the conference, the board member or industrial appeals judge
conducting the same, shall state on the record the results of
such conference, and the parties present or their representatives shall state their concurrence on the record. Such agreement as stated on the record shall control the subsequent
course of the proceedings, unless modified at a subsequent
hearing to prevent manifest injustice. If agreement concerning final disposition of the appeal is reached by the parties
present at the conference, or by the employer and worker or
beneficiary, the board may enter a final decision and order in
accordance therewith, providing the board finds such agreement is in conformity with the law and the facts.
(2) In order to carry out subsection (1) of this section, the
board shall develop expertise to mediate disputes informally.
Where possible, industrial appeals judges with a demonstrated history of successfully resolving disputes or who have
received training in dispute resolution techniques shall be
appointed to perform mediation functions. No industrial
appeals judge who mediates in a particular appeal may, without the consent of the parties, participate in writing the proposed decision and order in the appeal: PROVIDED, That
this shall not prevent an industrial appeals judge from issuing
a proposed decision and order responsive to a motion for
summary disposition or similar motion. This section shall not
operate to prevent the board from developing additional
methods and procedures to encourage resolution of disputes
by agreement or otherwise making efforts to reduce adjudication time. [1986 c 10 § 1; 1985 c 209 § 2; 1982 c 109 § 7;
1977 ex.s. c 350 § 78; 1963 c 148 § 3; 1963 c 6 § 1; 1961 c 23
§ 51.52.095. Prior: 1951 c 225 § 10.]
51.52.100
51.52.100 Proceedings before board—Contempt.
Hearings shall be held in the county of the residence of the
worker or beneficiary, or in the county where the injury
occurred, at a place designated by the board. Such hearing
shall be de novo and summary, but no witness' testimony
shall be received unless he or she shall first have been sworn
to testify the truth, the whole truth and nothing but the truth in
the matter being heard, or unless his or her testimony shall
have been taken by deposition according to the statutes and
rules relating to superior courts of this state. The department
[Title 51 RCW—page 80]
shall be entitled to appear in all proceedings before the board
and introduce testimony in support of its order. The board
shall cause all oral testimony to be stenographically reported
and thereafter transcribed, and when transcribed, the same,
with all depositions, shall be filed in, and remain a part of, the
record on the appeal. Such hearings on appeal to the board
may be conducted by one or more of its members, or a duly
authorized industrial appeals judge, and depositions may be
taken by a person duly commissioned for the purpose by the
board.
Members of the board, its duly authorized industrial
appeals judges, and all persons duly commissioned by it for
the purpose of taking depositions, shall have power to administer oaths; to preserve and enforce order during such hearings; to issue subpoenas for, and to compel the attendance
and testimony of, witnesses, or the production of books,
papers, documents, and other evidence, or the taking of depositions before any designated individual competent to
administer oaths, and it shall be their duty so to do to examine
witnesses; and to do all things conformable to law which may
be necessary to enable them, or any of them, effectively to
discharge the duties of his or her office.
If any person in proceedings before the board disobeys
or resists any lawful order or process, or misbehaves during a
hearing or so near the place thereof as to obstruct the same, or
neglects to produce, after having been ordered so to do, any
pertinent book, paper or document, or refuses to appear after
having been subpoenaed, or upon appearing refuses to take
oath as a witness, or after having the oath refuses to be examined according to law, the board or any member or duly
authorized industrial appeals judge may certify the facts to
the superior court having jurisdiction in the place in which
said board or member or industrial appeals judge is sitting;
the court shall thereupon, in a summary manner, hear the evidence as to the acts complained of, and, if the evidence so
warrants, punish such person in the same manner and to the
same extent as for a contempt committed before the court, or
commit such person upon the same conditions as if the doing
of the forbidden act had occurred with reference to the proceedings, or in the presence, of the court. [1982 c 109 § 8;
1977 ex.s. c 350 § 79; 1963 c 148 § 4; 1961 c 23 § 51.52.100.
Prior: 1957 c 70 § 60; 1951 c 225 § 11; prior: 1949 c 219 §
6, part; 1943 c 280 § 1, part; 1931 c 90 § 1, part; 1929 c 132
§ 6, part; 1927 c 310 § 8, part; 1911 c 74 § 20, part; Rem.
Supp. 1949 § 7697, part.]
51.52.102
51.52.102 Hearing the appeal—Dismissal—Evidence—Continuances. At the time and place fixed for hearing each party shall present all his evidence with respect to
the issues raised in the notice of appeal, and if any party fails
so to do, the board may determine the issues upon such evidence as may be presented to it at said hearing, or if an
appealing party who has the burden of going forward with the
evidence fails to present any evidence, the board may dismiss
the appeal: PROVIDED, That for good cause shown in the
record to prevent hardship, the board may grant continuances
upon application of any party, but such continuances, when
granted, shall be to a time and place certain within the county
where the initial hearing was held unless it shall appear that a
continuance elsewhere is required in justice to interested parties: AND PROVIDED FURTHER, That the board may con(2004 Ed.)
Appeals
tinue hearings on its own motion to secure in an impartial
manner such evidence, in addition to that presented by the
parties, as the board, in its opinion, deems necessary to
decide the appeal fairly and equitably, but such additional
evidence shall be received subject to any objection as to its
admissibility, and, if admitted in evidence all parties shall be
given full opportunity for cross-examination and to present
rebuttal evidence. [1963 c 148 § 5; 1961 c 23 § 51.52.102.
Prior: 1951 c 225 § 12.]
51.52.104 Industrial appeals judge—Recommended
decision and order—Petition for review—Finality of
order. After all evidence has been presented at hearings conducted by an industrial appeals judge, who shall be an active
or judicial member of the Washington state bar association,
the industrial appeals judge shall enter a proposed or recommended decision and order which shall be in writing and shall
contain findings and conclusions as to each contested issue of
fact and law, as well as the order based thereon. The industrial appeals judge shall file the signed original of the proposed decision and order with the board, and copies thereof
shall be mailed by the board to each party to the appeal and to
each party's attorney or representative of record. Within
twenty days, or such further time as the board may allow on
written application of a party, filed within said twenty days
from the date of communication of the proposed decision and
order to the parties or their attorneys or representatives of
record, any party may file with the board a written petition for
review of the same. Filing of a petition for review is perfected by mailing or personally delivering the petition to the
board's offices in Olympia. Such petition for review shall set
forth in detail the grounds therefor and the party or parties filing the same shall be deemed to have waived all objections or
irregularities not specifically set forth therein.
In the event no petition for review is filed as provided
herein by any party, the proposed decision and order of the
industrial appeals judge shall be adopted by the board and
become the decision and order of the board, and no appeal
may be taken therefrom to the courts. If an order adopting the
proposed decision and order is not formally signed by the
board on the day following the date the petition for review of
the proposed decision and order is due, said proposed decision and order shall be deemed adopted by the board and
become the decision and order of the board, and no appeal
may be taken therefrom to the courts. [2003 c 224 § 2; 1985
c 314 § 1; 1982 c 109 § 5; 1971 ex.s. c 289 § 22; 1963 c 148
§ 6.]
51.52.104
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.52.106
51.52.106 Review of decision and order. After the filing of a petition or petitions for review as provided for in
RCW 51.52.104, the proposed decision and order of the
industrial appeals judge, petition or petitions for review and,
in its discretion, the record or any part thereof, may be considered by the board and on agreement of at least two of the
regular members thereof, the board may, within twenty days
after the receipt of such petition or petitions, decline to
review the proposed decision and order and thereupon deny
the petition or petitions. In such event all parties shall forthwith be notified in writing of said denial: PROVIDED, That
(2004 Ed.)
51.52.110
if a petition for review is not denied within said twenty days
it shall be deemed to have been granted. If the petition for
review is granted, the proposed decision and order, the petition or petitions for review and the record or any part thereof
deemed necessary shall be considered by a panel of at least
two of the members of the board, on which not more than one
industry and one labor member serve. The chairman may be
a member of any panel. The decision and order of any such
panel shall be the decision and order of the board. Every final
decision and order rendered by the board shall be in writing
and shall contain findings and conclusions as to each contested issue of fact and law, as well as the board's order based
thereon. The board shall, in all cases, render a final decision
and order within one hundred and eighty days from the date a
petition for review is filed. A copy of the decision and order,
including the findings and conclusions, shall be mailed to
each party to the appeal and to his attorney of record. [1982
c 109 § 9; 1975 1st ex.s. c 58 § 4; 1971 ex.s. c 289 § 23; 1965
ex.s. c 165 § 4; 1963 c 148 § 7; 1961 c 23 § 51.52.106. Prior:
1951 c 225 § 13.]
Effective dates—Severability—1971 ex.s. c 289: See RCW 51.98.060
and 51.98.070.
51.52.110
51.52.110 Court appeal—Taking the appeal. Within
thirty days after a decision of the board to deny the petition or
petitions for review upon such appeal has been communicated to such worker, beneficiary, employer or other person,
or within thirty days after the final decision and order of the
board upon such appeal has been communicated to such
worker, beneficiary, employer or other person, or within
thirty days after the appeal is denied as herein provided, such
worker, beneficiary, employer or other person aggrieved by
the decision and order of the board may appeal to the superior
court. If such worker, beneficiary, employer, or other person
fails to file with the superior court its appeal as provided in
this section within said thirty days, the decision of the board
to deny the petition or petitions for review or the final decision and order of the board shall become final.
In cases involving injured workers, an appeal to the
superior court shall be to the superior court of the county of
residence of the worker or beneficiary, as shown by the
department's records, or to the superior court of the county
wherein the injury occurred or where neither the county of
residence nor the county wherein the injury occurred are in
the state of Washington then the appeal may be directed to
the superior court for Thurston county. In all other cases the
appeal shall be to the superior court of Thurston county. Such
appeal shall be perfected by filing with the clerk of the court
a notice of appeal and by serving a copy thereof by mail, or
personally, on the director and on the board. If the case is one
involving a self-insurer, a copy of the notice of appeal shall
also be served by mail, or personally, on such self-insurer.
The department shall, in all cases not involving a self-insurer,
within twenty days after the receipt of such notice of appeal,
serve and file its notice of appearance and such appeal shall
thereupon be deemed at issue. If the case is one involving a
self-insurer, such self-insurer shall, within twenty days after
receipt of such notice of appeal, serve and file its notice of
appearance and such appeal shall thereupon be deemed to be
at issue. In such cases the department may appear and take
part in any proceedings. The board shall serve upon the
[Title 51 RCW—page 81]
51.52.112
Title 51 RCW: Industrial Insurance
appealing party, the director, the self-insurer if the case
involves a self-insurer, and any other party appearing at the
board's proceeding, and file with the clerk of the court before
trial, a certified copy of the board's official record which shall
include the notice of appeal and other pleadings, testimony
and exhibits, and the board's decision and order, which shall
become the record in such case. No bond shall be required on
appeals to the superior court or on review by the supreme
court or the court of appeals, except that an appeal by the
employer from a decision and order of the board under
*RCW 51.48.070, shall be ineffectual unless, within five
days following the service of notice thereof, a bond, with
surety satisfactory to the court, shall be filed, conditioned to
perform the judgment of the court. Except in the case last
named an appeal shall not be a stay: PROVIDED, HOWEVER, That whenever the board has made any decision and
order reversing an order of the supervisor of industrial insurance on questions of law or mandatory administrative actions
of the director, the department shall have the right of appeal
to the superior court. [1988 c 202 § 49; 1982 c 109 § 6; 1977
ex.s. c 350 § 80; 1973 c 40 § 1. Prior: 1972 ex.s. c 50 § 1;
1972 ex.s. c 43 § 36; 1971 ex.s. c 289 § 24; 1971 c 81 § 122;
1961 c 23 § 51.52.110; prior: 1957 c 70 § 61; 1951 c 225 §
14; prior: 1949 c 219 § 6, part; 1943 c 280 § 1, part; 1931 c
90 § 1, part; 1929 c 132 § 6, part; 1927 c 310 § 8, part; 1911
c 74 § 20, part; Rem. Supp. 1949 § 7697, part.]
before the board, not shown in said record, testimony thereon
may be taken in the superior court. The proceedings in every
such appeal shall be informal and summary, but full opportunity to be heard shall be had before judgment is pronounced.
In all court proceedings under or pursuant to this title the
findings and decision of the board shall be prima facie correct
and the burden of proof shall be upon the party attacking the
same. If the court shall determine that the board has acted
within its power and has correctly construed the law and
found the facts, the decision of the board shall be confirmed;
otherwise, it shall be reversed or modified. In case of a modification or reversal the superior court shall refer the same to
the department with an order directing it to proceed in accordance with the findings of the court: PROVIDED, That any
award shall be in accordance with the schedule of compensation set forth in this title. In appeals to the superior court hereunder, either party shall be entitled to a trial by jury upon
demand, and the jury's verdict shall have the same force and
effect as in actions at law. Where the court submits a case to
the jury, the court shall by instruction advise the jury of the
exact findings of the board on each material issue before the
court. [1961 c 23 § 51.52.115. Prior: 1957 c 70 § 62; 1951 c
225 § 15; prior: (i) 1949 c 219 § 6, part; 1943 c 280 § 1, part;
1931 c 90 § 1, part; 1929 c 132 § 6, part; 1927 c 310 § 8, part;
1911 c 74 § 20, part; Rem. Supp. 1949 § 7697, part. (ii) 1949
c 219 § 6; 1939 c 184 § 1; Rem. Supp. 1949 § 7697-2.]
Rules of court: Cf. Title 8 RAP, RAP 18.22.
*Reviser's note: RCW 51.48.070 was repealed by 1996 c 60 § 2.
Severability—1988 c 202: See note following RCW 2.24.050.
51.52.112
51.52.112 Court appeal—Payment of taxes, penalties, and interest required. All taxes, penalties, and interest
shall be paid in full before any action may be instituted in any
court to contest all or any part of such taxes, penalties, or
interest unless the court determines that there would be an
undue hardship to the employer. In the event an employer
prevails in a court action, the employer shall be allowed interest on all taxes, penalties, and interest paid by the employer
but determined by a final order of the court to not be due,
from the date such taxes, penalties, and interest were paid.
Interest shall be at the rate allowed by law as prejudgment
interest. [1986 c 9 § 19.]
51.52.113
51.52.113 Collection of tax or penalty may not be
enjoined. No restraining order or injunction may be granted
or issued by any court to restrain or enjoin the collection of
any tax or penalty or any part thereof, except upon the ground
that the assessment thereof was in violation of the Constitution of the United States or that of the state. [1986 c 9 § 20.]
51.52.115
51.52.115 Court appeal—Procedure at trial—Burden of proof. Upon appeals to the superior court only such
issues of law or fact may be raised as were properly included
in the notice of appeal to the board, or in the complete record
of the proceedings before the board. The hearing in the superior court shall be de novo, but the court shall not receive evidence or testimony other than, or in addition to, that offered
before the board or included in the record filed by the board
in the superior court as provided in RCW 51.52.110: PROVIDED, That in cases of alleged irregularities in procedure
[Title 51 RCW—page 82]
51.52.120
51.52.120 Attorney's fee before department or
board—Unlawful attorney's fees. (1) It shall be unlawful
for an attorney engaged in the representation of any worker or
beneficiary to charge for services in the department any fee in
excess of a reasonable fee, of not more than thirty percent of
the increase in the award secured by the attorney's services.
Such reasonable fee shall be fixed by the director or the director's designee for services performed by an attorney for such
worker or beneficiary, if written application therefor is made
by the attorney, worker, or beneficiary within one year from
the date the final decision and order of the department is communicated to the party making the application.
(2) If, on appeal to the board, the order, decision, or
award of the department is reversed or modified and additional relief is granted to a worker or beneficiary, or in cases
where a party other than the worker or beneficiary is the
appealing party and the worker's or beneficiary's right to
relief is sustained by the board, the board shall fix a reasonable fee for the services of his or her attorney in proceedings
before the board if written application therefor is made by the
attorney, worker, or beneficiary within one year from the date
the final decision and order of the board is communicated to
the party making the application. In fixing the amount of
such attorney's fee, the board shall take into consideration the
fee allowed, if any, by the director, for services before the
department, and the board may review the fee fixed by the
director. Any attorney's fee set by the department or the
board may be reviewed by the superior court upon application of such attorney, worker, or beneficiary. The department
or self-insured employer, as the case may be, shall be served
a copy of the application and shall be entitled to appear and
take part in the proceedings. Where the board, pursuant to
this section, fixes the attorney's fee, it shall be unlawful for an
(2004 Ed.)
Construction
attorney to charge or receive any fee for services before the
board in excess of that fee fixed by the board.
(3) Any person who violates this section is guilty of a
misdemeanor. [2003 c 53 § 285; 1990 c 15 § 1; 1982 c 63 §
22; 1977 ex.s. c 350 § 81; 1965 ex.s. c 63 § 1; 1961 c 23 §
51.52.120. Prior: 1951 c 225 § 16; prior: 1947 c 246 § 3;
Rem. Supp. 1947 § 7679-3.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
Effective dates—Implementation—1982 c 63: See note following
RCW 51.32.095.
51.52.130
51.52.130 Attorney and witness fees in court appeal.
If, on appeal to the superior or appellate court from the decision and order of the board, said decision and order is
reversed or modified and additional relief is granted to a
worker or beneficiary, or in cases where a party other than the
worker or beneficiary is the appealing party and the worker's
or beneficiary's right to relief is sustained, a reasonable fee
for the services of the worker's or beneficiary's attorney shall
be fixed by the court. In fixing the fee the court shall take into
consideration the fee or fees, if any, fixed by the director and
the board for such attorney's services before the department
and the board. If the court finds that the fee fixed by the director or by the board is inadequate for services performed
before the department or board, or if the director or the board
has fixed no fee for such services, then the court shall fix a fee
for the attorney's services before the department, or the
board, as the case may be, in addition to the fee fixed for the
services in the court. If in a worker or beneficiary appeal the
decision and order of the board is reversed or modified and if
the accident fund or medical aid fund is affected by the litigation, or if in an appeal by the department or employer the
worker or beneficiary's right to relief is sustained, or in an
appeal by a worker involving a state fund employer with
twenty-five employees or less, in which the department does
not appear and defend, and the board order in favor of the
employer is sustained, the attorney's fee fixed by the court,
for services before the court only, and the fees of medical and
other witnesses and the costs shall be payable out of the
administrative fund of the department. In the case of selfinsured employers, the attorney fees fixed by the court, for
services before the court only, and the fees of medical and
other witnesses and the costs shall be payable directly by the
self-insured employer. [1993 c 122 § 1; 1982 c 63 § 23; 1977
ex.s. c 350 § 82; 1961 c 23 § 51.52.130. Prior: 1957 c 70 §
63; 1951 c 225 § 17; prior: 1949 c 219 § 6, part; 1943 c 280
§ 1, part; 1931 c 90 § 1, part; 1929 c 132 § 6, part; 1927 c 310
§ 8, part; 1911 c 74 § 20, part; Rem. Supp. 1949 § 7697, part.]
Effective dates—Implementation—1982 c 63: See note following
RCW 51.32.095.
Chapter 51.98
51.52.135
51.52.135 Worker or beneficiary entitled to interest
on award—Rate. (1) When a worker or beneficiary prevails
in an appeal by the employer to the board or in an appeal by
the employer to the court from the decision and order of the
board, the worker or beneficiary shall be entitled to interest at
the rate of twelve percent per annum on the unpaid amount of
the award after deducting the amount of attorney fees.
(2) When a worker or beneficiary prevails in an appeal
by the worker or beneficiary to the board or the court regarding a claim for temporary total disability, the worker or beneficiary shall be entitled to interest at the rate of twelve percent per annum on the unpaid amount of the award after
deducting the amount of attorney fees.
(3) The interest provided for in subsections (1) and (2) of
this section shall accrue from the date of the department's
order granting the award or denying payment of the award.
The interest shall be paid by the party having the obligation to
pay the award. The amount of interest to be paid shall be
fixed by the board or court, as the case may be. [1983 c 301
§ 1.]
51.52.140
51.52.140 Rules of practice—Duties of attorney general—Supreme court appeal. Except as otherwise provided
in this chapter, the practice in civil cases shall apply to
appeals prescribed in this chapter. Appeal shall lie from the
judgment of the superior court as in other civil cases. The
attorney general shall be the legal advisor of the department
and the board. [1961 c 23 § 51.52.140. Prior: 1957 c 70 § 64;
1951 c 225 § 19; prior: 1949 c 219 § 6, part; 1943 c 280 § 1,
part; 1931 c 90 § 1, part; 1929 c 132 § 6, part; 1927 c 310 § 8,
part; 1911 c 74 § 20, part; Rem. Supp. 1949 § 7697, part.]
Rules of court: Method of appellate review superseded by RAP 2.1, 2.2.
51.52.150
51.52.150 Costs on appeals. All expenses and costs
incurred by the department for board and court appeals,
including fees for medical and other witnesses, court reporter
costs and attorney's fees, and all costs taxed against the
department, shall be paid one-half out of the medical aid fund
and one-half out of the accident fund. [1961 c 23 §
51.52.150. Prior: 1951 c 225 § 20; prior: 1931 c 116 § 1;
RRS § 7697-1.]
51.52.160
51.52.160 Publication and indexing of significant
decisions. The board shall publish and index its significant
decisions and make them available to the public at reasonable
cost. [1985 c 209 § 1.]
51.52.200
51.52.200 Exception—Employers as parties to
actions relating to compensation or assistance for victims
of crimes. This chapter shall not apply to matters concerning
employers as parties to any settlement, appeal, or other action
in accordance with chapter 7.68 RCW. [1997 c 102 § 2.]
51.52.132
51.52.132 Unlawful attorney's fees. Where the department, the board or the court, pursuant to RCW 51.52.120 or
51.52.130 fixes the attorney's fee, it shall be unlawful for an
attorney to charge or receive any fee in excess of that fixed by
the department, board or the court. Any person who violates
any provision of this section shall be guilty of a misdemeanor. [1965 ex.s. c 63 § 2; 1961 c 23 § 51.52.132. Prior:
1951 c 225 § 18.]
(2004 Ed.)
Chapter 51.98
Chapter 51.98 RCW
CONSTRUCTION
Sections
51.98.010
51.98.020
51.98.030
51.98.040
Continuation of existing law.
Title, chapter, section headings not part of law.
Invalidity of part of title not to affect remainder.
Repeals and saving.
[Title 51 RCW—page 83]
51.98.010
51.98.050
51.98.060
51.98.070
51.98.080
Title 51 RCW: Industrial Insurance
Emergency—1961 c 23.
Effective dates—1971 ex.s. c 289.
Severability—1971 ex.s. c 289.
Severability—1972 ex.s. c 43.
act shall take effect and become operative without any further
action of the legislature on January 1, 1972. [1971 ex.s. c 289
§ 90.]
Construction—1947 c 246: "The increased benefits and compensation
authorized by this act shall not be applicable to a case of death, or injury or
aggravation thereof, occurring prior to the effective date of this act." [1947
c 246 § 2.]
Construction—1923 c 136: "For all cases of injuries to workmen
which occurred and for all claims or actions pending or causes of action
existing before this act shall go into effect, Sections 7673 to 7796 of Remington's Compiled Statutes of Washington shall continue in force as they were
prior to and they shall be unaffected by the passage of this amendatory act."
[1923 c 136 § 20.] The internal references refer to the entire industrial insurance act as it existed in 1923.
51.98.070 Severability—1971 ex.s. c 289. If any provision of this 1971 amendatory act, or its application to any
person or circumstance is held invalid, the remainder of the
act, or the application of the provision to other persons or circumstances is not affected: PROVIDED, That nothing in this
section shall affect or invalidate any of the provisions of
RCW 51.04.090. [1971 ex.s. c 289 § 91.]
51.98.070
51.98.080 Severability—1972 ex.s. c 43. If any provision of this 1972 amendatory act, or its application to any person or circumstance is held invalid, the remainder of the act,
or the application of the provisions to other persons or circumstances is not affected. [1972 ex.s. c 43 § 38.]
51.98.080
Construction—1919 c 131: "For all cases of injuries to workmen
which occurred before this act shall be into effect Sections 6604-3, 6604-5,
6604-6, and 6604-10 shall continue in force as they were prior to and they
shall be unaffected by the passage of this amendatory act. The amendatory
provisions of sections 2, 4, 5, and 6 of this act shall apply only to injuries
occurring after they shall go into effect." [1919 c 131 § 9.] The internal references to prior compilations refer to such sections as amended in the 1919
act by sections 2, 4, 5, and 6 as repeated in the last sentence of the above quotation. Such sections are scattered throughout chapters 51.16, 51.20, 51.32,
and 51.48 RCW.
51.98.010 Continuation of existing law. The provisions of this title insofar as they are substantially the same as
statutory provisions repealed by this chapter, and relating to
the same subject matter, shall be construed as restatements
and continuations, and not as new enactments. [1961 c 23 §
51.98.010.]
51.98.010
51.98.020 Title, chapter, section headings not part of
law. Title headings, chapter headings, and section or subsection headings, as used in this title do not constitute any part of
the law. [1961 c 23 § 51.98.020.]
51.98.020
51.98.030 Invalidity of part of title not to affect
remainder. If any provision of this title, or its application to
any person or circumstance is held invalid, the remainder of
the title, or the application of the provision to other persons or
circumstances is not affected: PROVIDED, That nothing in
this section shall affect or invalidate any of the provisions of
RCW 51.04.090. [1961 c 23 § 51.98.030.]
51.98.030
51.98.040 Repeals and saving.
51.98.040.
51.98.040
See 1961 c 23 §
51.98.050 Emergency—1961 c 23. This act is necessary for the immediate preservation of the public peace,
health and safety, the support of the state government and its
existing public institutions, and shall take effect immediately.
[1961 c 23 § 51.98.050.]
51.98.050
51.98.060 Effective dates—1971 ex.s. c 289. The provisions of this 1971 amendatory act are necessary for the
immediate preservation of the public peace, health and
safety, the support of the state government and its existing
public institutions, and shall take effect on July 1, 1971:
PROVIDED, That RCW 51.08.070 as amended by section 1
of this 1971 amendatory act, RCW 51.12.010 as amended in
section 2 of this 1971 amendatory act, RCW 51.12.020 as
amended in section 3 of this 1971 amendatory act and RCW
51.16.110 as amended in section 4 of this 1971 amendatory
51.98.060
[Title 51 RCW—page 84]
(2004 Ed.)
Title 52
Title 52
FIRE PROTECTION DISTRICTS
Chapters
52.02 Formation.
52.04 Annexation.
52.06 Merger.
52.08 Withdrawal.
52.10 Dissolution.
52.12 Powers—Burning permits.
52.14 Commissioners.
52.16 Finances.
52.18 Benefit charges.
52.20 Local improvement districts.
52.22 Special proceedings.
52.26 Regional fire protection service authorities.
52.30 Miscellaneous provisions.
Annexation of district territory to cities and towns: Chapter 35.13 RCW.
Conveyance of real property by public bodies—Recording: RCW 65.08.095.
Credit card use by local governments: RCW 43.09.2855.
Fire department vehicles; lighting, plates: RCW 46.37.184 through
46.37.188.
Fire fighting equipment, standardization: Chapter 70.75 RCW.
Fire fighters' relief and pensions: Chapters 41.16, 41.18, and 41.24 RCW.
Forest protection: Chapter 76.04 RCW.
Hospitalization and medical aid for public employees and dependents—Premiums, governmental contributions authorized: RCW 41.04.180,
41.04.190.
Local governmental organizations, actions affecting boundaries, etc., review
by boundary review board: Chapter 36.93 RCW.
Metropolitan municipal corporations: Chapter 35.58 RCW.
Municipal corporation may authorize investment of funds which are in custody of county treasurer or other municipal corporation treasurer:
RCW 36.29.020.
Public bodies may retain collection agencies to collect public debts—Fees:
RCW 19.16.500.
Retirement—Law enforcement officers' and fire fighters' retirement system:
Chapter 41.26 RCW.
State fire protection: Chapter 48.48 RCW.
Trade centers—Annual service fee—Distribution to fire districts: RCW
53.29.030.
Chapter 52.02
Chapter 52.02 RCW
FORMATION
Sections
52.02.001
52.02.020
52.02.030
52.02.035
52.02.040
52.02.050
52.02.060
52.02.070
52.02.080
52.02.110
52.02.140
52.02.150
(2004 Ed.)
Actions subject to review by boundary review board.
Districts authorized—Health clinic services.
Petition—Certification.
Petition—Notice of sufficiency.
Petition—Public hearing.
Public hearing—Notice—Publication and posting.
Hearing—Inclusion and exclusion of land.
Action on petition—Resolution—Election—District name
when located in more than one county.
Election.
Declaration of election results—Resolution.
Appeal.
Organization conclusive.
52.02.001 Actions subject to review by boundary
review board. Actions taken under chapter 52.02 RCW may
be subject to potential review by a boundary review board
under chapter 36.93 RCW. [1989 c 84 § 41.]
52.02.001
52.02.020 Districts authorized—Health clinic services. (1) Fire protection districts for the provision of fire
prevention services, fire suppression services, emergency
medical services, and for the protection of life and property in
areas outside of cities and towns, except where the cities and
towns have been annexed into a fire protection district or
where the district is continuing service pursuant to RCW
35.02.202, are authorized to be established as provided in this
title.
(2) In addition to other services authorized under this
section, fire protection districts that share a common border
with Canada and are surrounded on three sides by water, may
also establish or participate in the provision of health clinic
services. [2003 c 309 § 1; 1991 c 360 § 10; 1984 c 230 § 1;
1979 ex.s. c 179 § 5; 1959 c 237 § 1; 1947 c 254 § 1; 1945 c
162 § 1; 1943 c 121 § 1; 1941 c 70 § 1; 1939 c 34 § 1; Rem.
Supp. 5654-101. Formerly RCW 52.04.020.]
52.02.020
Construction—Severability—1939 c 34: "The provisions of this act
and proceedings thereunder shall be liberally construed with a view to effect
their objects. If any section or provision of this act shall be adjudged to be
invalid or unconstitutional, such adjudication shall not affect the validity of
the act as a whole or any section, provision or part thereof not adjudged to be
invalid or unconstitutional." [1939 c 34 § 51.]
Validating—Saving—1939 c 34: "Any petition heretofore drawn,
signed and filed with the county auditor in compliance with the provisions of
section 1 to section 6, inclusive, of the Laws of 1933, Extraordinary Session,
shall be valid and the various steps required by this act for the creation of a
fire-protection district may be continued, if the further steps to be taken are
begun within ninety (90) days after the taking effect of this act [March 1,
1939], and it shall not be necessary to prepare, sign and file with the county
auditor a new petition, and any district so created shall not be invalid by reason of the failure to draw, sign and file a new petition under the provisions of
this act." [1939 c 34 § 49.]
52.02.030 Petition—Certification. (1) For the purpose
of the formation of a fire protection district, a petition designating the boundaries of the proposed district, by metes and
bounds, or by describing the lands to be included in the proposed district by United States townships, ranges and legal
subdivisions, signed by not less than ten percent of the registered voters who reside within the boundaries of the proposed
district who voted in the last general municipal election, and
setting forth the object for the creation of the proposed district and alleging that the establishment of the proposed district will be conducive to the public safety, welfare, and convenience, and will be a benefit to the property included in the
proposed district, shall be filed with the county auditor of the
county in which all, or the largest portion of, the proposed
district is located, accompanied by an obligation signed by
two or more petitioners, agreeing to pay the cost of the publication of the notice required by this title. The organization of
52.02.030
[Title 52 RCW—page 1]
52.02.035
Title 52 RCW: Fire Protection Districts
any fire protection district previously formed is hereby
approved and confirmed as a legally organized fire protection
district in the state of Washington.
(2) The county auditor shall, within thirty days from the
date of filing the petition, examine the signatures and certify
to the sufficiency or insufficiency of the signatures. If the
proposed fire protection district is located in more than one
county, the auditor of the county in which the largest portion
of the proposed fire protection district is located shall be the
lead auditor and shall transmit a copy of the petition to the
auditor or auditors of the other county or counties within
which the proposed fire protection district is located. Each of
these other auditors shall certify to the lead auditor both the
total number of registered voters residing in that portion of
the proposed fire protection district that is located in the
county and the number of valid signatures of such voters who
have signed the petition. The lead auditor shall certify the
sufficiency or insufficiency of the signatures. The books and
records of the auditor shall be prima facie evidence of the
truth of the certificate. No person having signed the petition
is allowed to withdraw his or her name after the filing of the
petition with the county auditor.
(3) If the petition is found to contain a sufficient number
of signatures of registered voters residing within the proposed district, the county auditor shall transmit the petition,
together with the auditor's certificate of sufficiency, to the
county legislative authority or authorities of the county or
counties in which the proposed fire protection district is
located. [1990 c 259 § 12; 1989 c 63 § 1; 1984 c 230 § 2;
1963 ex.s. c 13 § 1; 1947 c 254 § 2; 1939 c 34 § 2; Rem. Supp.
1947 § 5654-102. Prior: 1933 c 60 § 2. Formerly RCW
52.04.030.]
proposal was submitted to the boundary review board if the
jurisdiction of the boundary review board was not invoked, or
not less than forty days after the date that the boundary
review board that has had its jurisdiction invoked over the
proposal must act if the proposal is deemed to have been
approved. The hearing by the county legislative authority
may be completed at the scheduled time or may be adjourned
from time to time as may be necessary for a determination of
the petition, but such adjournment or adjournments shall not
extend the time for considering the petition more than twenty
days from the date of the initial hearing on the petition.
(2) If the proposed fire protection district is located in
more than one county, a public hearing shall be held in each
of the counties by the county legislative authority or boundary review board. Joint public hearings may be held by two or
more county legislative authorities, or two or more boundary
review boards, on the proposal. [1989 c 63 § 3; 1984 c 230 §
3; 1939 c 34 § 3; RRS § 5654-103. Prior: 1933 c 60 § 2. Formerly RCW 52.04.040.]
52.02.050
52.02.050 Public hearing—Notice—Publication and
posting. Notice of the public hearing by the county legislative authority on such a proposal shall be published for three
consecutive weeks in the official paper of the county prior to
the date set for the hearing and shall be posted for not less
than fifteen days prior to the date of the hearing in each of
three public places within the boundaries of the proposed district. The notices shall contain the time, date, and place of the
public hearing. [1989 c 63 § 4; 1984 c 230 § 4; 1939 c 34 §
4; RRS § 5654-104. Prior: 1933 c 60 § 2. Formerly RCW
52.04.050.]
52.02.060
52.02.035
52.02.035 Petition—Notice of sufficiency. The county
auditor who certifies the sufficiency of the petition shall
notify the person or persons who submitted the petition of its
sufficiency or insufficiency within five days of when the
determination of sufficiency or insufficiency is made. Notice
shall be by certified mail and additionally may be made by
telephone. If a boundary review board exists in the county or
counties in which the proposed fire protection district is
located and the petition has been certified as being sufficient,
the petitioners shall file notice of the proposed incorporation
with the boundary review board or boards. [1989 c 63 § 2.]
52.02.040
52.02.040 Petition—Public hearing. (1) A public
hearing on the petition shall be held by the county legislative
authority of the county in which the proposed fire protection
district is located if: (a) No boundary review board exists in
the county; (b) jurisdiction by the boundary review board
over the proposal has not been invoked; or (c) the boundary
review board fails to take action on the proposal over which
its jurisdiction has been invoked within the time period that
the board must act or a proposal is deemed to have been
approved. If such a public hearing is held by the county legislative authority, the hearing shall be held not less than
twenty nor more than forty days from the date of receipt of
the petition with the certificate of sufficiency from the county
auditor if there is no boundary review board in the county, or
not more than one hundred days from when the notice of the
[Title 52 RCW—page 2]
52.02.060 Hearing—Inclusion and exclusion of land.
At the time and place of the hearing on the petition or at any
adjournment thereof, the county legislative authority shall
consider the petition and shall receive evidence as it deems
material in favor of or opposed to the formation of the district
or to the inclusion or exclusion of any lands. No lands outside
of the boundaries of the proposed district as described in the
petition may be included within the district without a written
petition describing the land, executed by all persons having
an interest of record in the lands, and filed with the proceedings on the petition. No land within the boundaries described
in the petition, except that land which the county legislative
authority finds will receive no benefits from the proposed
district, may be excluded from the district. [1984 c 230 § 5;
1947 c 254 § 3; 1939 c 34 § 5; Rem. Supp. 1947 § 5654-105.
Prior: 1933 c 60 § 3. Formerly RCW 52.04.060.]
52.02.070
52.02.070 Action on petition—Resolution—Election—District name when located in more than one
county. The county legislative authority has the authority to
consider the petition and, if it finds that the lands or any portion of the lands described in the petition, and any lands
added thereto by petition of those interested, will be benefited
and that the formation of the district will be conducive to the
public safety, welfare, and convenience, it shall make a finding by resolution; otherwise it shall deny the petition. The
county legislative authority shall consider only those areas
located within the county when considering the petition. If
(2004 Ed.)
Annexation
the county legislative authority approves the petition, it shall
designate the name and number of the district, fix the boundaries of the district that are located within the county, and
direct that an election be held within the proposed district for
the purpose of determining whether the district shall be organized under this title and for the purpose of the election of its
first fire commissioners.
Where a proposed fire protection district is located in
more than a single county, the fire protection district shall be
identified by the name of each county in which the proposed
fire protection district is located, listed alphabetically, followed by a number that is the next highest number available
for a fire protection district in the one of these counties that
has the greatest number of fire protection districts. An election on a proposed fire protection district that is located in
more than one county shall not be held unless the proposed
district has been approved by the county legislative authorities, or boundary review boards, of each county within which
the proposed district is located. [1989 c 63 § 5; 1984 c 230 §
6; 1939 c 34 § 6; RRS § 5654-106. Prior: 1933 c 60 § 3. Formerly RCW 52.04.070.]
52.04.011
islative authority. [1984 c 230 § 13; 1939 c 34 § 13; RRS §
5654-113. Formerly RCW 52.04.140.]
Appeal from board's action: RCW 36.32.330.
52.02.150 Organization conclusive. After the expiration of five days from the approval of the resolution of the
county legislative authority declaring the district to be organized, and the filing of the certified copies of the resolution of
the county legislative authority with the county auditor and
the county assessor, the creation of the district is complete
and its legal existence cannot thereafter be questioned by any
person by reason of a defect in the proceedings for the organization of the district. [1984 c 230 § 14; 1939 c 34 § 14;
RRS § 5654-114. Formerly RCW 52.04.150.]
52.02.150
Chapter 52.04
Sections
52.04.001
52.04.011
52.04.021
52.02.080
52.02.080 Election. The election on the formation of
the district and to elect the initial fire commissioners shall be
conducted by the election officials of the county or counties
in which the proposed district is located in accordance with
the general election laws of the state. This election shall be
held at the next general election date, as specified under
*RCW 29.13.020, that occurs forty-five or more days after
the date of the action by the boundary review board, or
county legislative authority or authorities, approving the proposal. [1989 c 63 § 6; 1984 c 230 § 7; 1939 c 34 § 7; RRS §
5654-107. Formerly RCW 52.04.080.]
*Reviser's note: RCW 29.13.020 was recodified as RCW 29A.04.330
pursuant to 2003 c 111 § 2401, effective July 1, 2004.
Elections: Title 29A RCW.
52.02.110
52.02.110 Declaration of election results—Resolution. If three-fifths of all the votes cast at the election were
cast in favor of the ballot proposition to create the proposed
fire protection district, the county legislative authority of the
county in which all, or the largest portion of, the proposed
district is located shall by resolution declare the territory
organized as a fire protection district under the name designated and shall declare the candidate for each fire commissioner position who receives the highest number of votes for
that position to be an initial fire commissioner of the district.
[1989 c 63 § 7; 1984 c 230 § 10; 1941 c 70 § 2; 1939 c 34 §
10; Rem. Sup p. 19 41 § 5654 -11 0. For merly RCW
52.04.110.]
52.02.140
52.02.140 Appeal. Any person or entity having a substantial interest and feeling aggrieved by any finding, determination, or resolution of the county legislative authority in
the proceedings for the organization of a fire protection district under this title, may appeal within five days after the
action of the county legislative authority to the superior court
of the county, in the same manner as provided by law for
appeals from the orders and determinations of the county leg(2004 Ed.)
Chapter 52.04 RCW
ANNEXATION
52.04.031
52.04.041
52.04.051
52.04.056
52.04.061
52.04.071
52.04.081
52.04.091
52.04.101
52.04.111
52.04.121
52.04.131
52.04.141
52.04.151
52.04.161
Actions subject to review by boundary review board.
Annexation of territory by election method—Procedure—
Indebtedness—Election dispensed with, when.
Annexation by petition method—Alternative to election
method.
Annexation by petition method—Petition—Signers—Content.
Annexation by petition method—Hearing—Notice.
Annexation by petition method—Resolution providing for
annexation.
Withdrawal or reannexation of areas.
Annexation of adjacent city or town—Procedure.
Annexation of adjacent city or town—Election.
Annexation of adjacent city or town—Annual tax levies—
Limitations.
Additional territory annexed by city to be part of district.
Withdrawal by annexed city or town—Election.
Annexation of city or town—Transfer of employees.
Annexation of city or town—Transfer of employees—Rights
and benefits.
Annexation of city or town—Transfer of employees—
Notice—Time limitation.
Annexation of contiguous territory not in same county.
Annexation of territory not in same county—District name.
Newly incorporated city or town deemed annexed by district—Withdrawal.
Merger of part of district with adjacent district: RCW 52.06.090.
52.04.001 Actions subject to review by boundary
review board. Actions taken under chapter 52.04 RCW may
be subject to potential review by a boundary review board
under chapter 36.93 RCW. [1989 c 84 § 42.]
52.04.001
52.04.011 Annexation of territory by election
method—Procedure—Indebtedness—Election dispensed
with, when. (1) A territory adjacent to a fire protection district and not within the boundaries of a city, town, or other
fire protection district may be annexed to the fire protection
district by petition of fifteen percent of the qualified registered electors residing within the territory proposed to be
annexed. Such territory may be located in a county or counties other than the county or counties within which the fire
protection district is located. The petition shall be filed with
the fire commissioners of the fire protection district and if the
fire commissioners concur in the petition they shall file the
petition with the county auditor of the county within which
the territory is located. If this territory is located in more than
one county, the original petition shall be filed with the auditor
of the county within which the largest portion of the territory
52.04.011
[Title 52 RCW—page 3]
52.04.021
Title 52 RCW: Fire Protection Districts
is located, who shall be designated as the lead auditor, and a
copy shall be filed with the auditor of each other county
within which such territory is located. Within thirty days after
the date of the filing of the petition the auditor shall examine
the signatures on the petition and certify to the sufficiency or
insufficiency of the signatures. If this territory is located in
more than one county, the auditor of each other county who
receives a copy of the petition shall examine the signatures
and certify to the lead auditor the number of valid signatures
and the number of registered voters residing in that portion of
the territory that is located within the county. The lead auditor shall certify the sufficiency or insufficiency of the signatures.
After the county auditor has certified the sufficiency of
the petition, the county legislative authority or authorities, or
the boundary review board or boards, of the county or counties in which such territory is located shall consider the proposal under the same basis that a proposed incorporation of a
fire protection district is considered, with the same authority
to act on the proposal as in a proposed incorporation, as provided under chapter 52.02 RCW. If the proposed annexation
is approved by the county legislative authority or boundary
review board, the board of fire commissioners shall adopt a
resolution requesting the county auditor to call a special election, as specified under *RCW 29.13.020, at which the ballot
proposition is to be submitted. No annexation shall occur
when the territory proposed to be annexed is located in more
than one county unless the county legislative authority or
boundary review board of each county approves the proposed
annexation.
(2) The county legislative authority or authorities of the
county or counties within which such territory is located have
the authority and duty to determine on an equitable basis, the
amount of any obligation which the territory to be annexed to
the district shall assume to place the property owners of the
existing district on a fair and equitable relationship with the
property owners of the territory to be annexed as a result of
the benefits of annexing to a district previously supported by
the property owners of the existing district. If a boundary
review board has had its jurisdiction invoked on the proposal
and approves the proposal, the county legislative authority of
the county within which such territory is located may exercise the authority granted in this subsection and require such
an assumption of indebtedness. This obligation may be paid
to the district in yearly benefit charge installments to be fixed
by the county legislative authority. This benefit charge shall
be collected with the annual tax levies against the property in
the annexed territory until fully paid. The amount of the obligation and the plan of payment established by the county legislative authority shall be described in general terms in the
notice of election for annexation and shall be described in the
ballot proposition on the proposed annexation that is presented to the voters for their approval or rejection. Such benefit charge shall be limited to an amount not to exceed a total
of fifty cents per thousand dollars of assessed valuation:
PROVIDED, HOWEVER, That the special election on the
proposed annexation shall be held only within the boundaries
of the territory proposed to be annexed to the fire protection
district.
(3) On the entry of the order of the county legislative
authority incorporating the territory into the existing fire pro[Title 52 RCW—page 4]
tection district, the territory shall become subject to the
indebtedness, bonded or otherwise, of the existing district. If
the petition is signed by sixty percent of the qualified registered electors residing within the territory proposed to be
annexed, and if the board of fire commissioners concur, an
election in the territory and a hearing on the petition shall be
dispensed with and the county legislative authority shall enter
its order incorporating the territory into the existing fire protection district. [1999 c 105 § 1; 1989 c 63 § 8; 1984 c 230 §
22; 1973 1st ex.s. c 195 § 49; 1965 ex.s. c 18 § 1; 1959 c 237
§ 3; 1947 c 254 § 5; 1945 c 162 § 2; 1941 c 70 § 3; Rem.
Supp. 1947 § 5654-116a. Formerly RCW 52.08.060.]
*Reviser's note: RCW 29.13.020 was recodified as RCW 29A.04.330
pursuant to 2003 c 111 § 2401, effective July 1, 2004.
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
52.04.021 Annexation by petition method—Alternative to election method. The method of annexation provided
for in RCW 52.04.031, 52.04.041, and 52.04.051 shall be an
alternate method to that specified in RCW 52.04.011. [1984
c 230 § 23; 1965 c 59 § 1. Formerly RCW 52.08.065.]
52.04.021
52.04.031 Annexation by petition method—Petition—Signers—Content. A petition for annexation of an
area adjacent to a fire district shall be in writing, addressed to
and filed with the board of fire commissioners of the district
to which annexation is desired. Such territory may be located
in a county or counties other than the county or counties
within which the fire protection district is located. It must be
signed by the owners, according to the records of the county
auditor or auditors, of not less than sixty percent of the area
of land included in the annexation petition, shall set forth a
legal description of the property and shall be accompanied by
a plat which outlines the boundaries of the property to be
annexed. The petition shall state the financial obligation, if
any, to be assumed by the area to be annexed. [1999 c 105 §
2; 1989 c 63 § 9; 1984 c 230 § 24; 1965 c 59 § 2. Formerly
RCW 52.08.066.]
52.04.031
52.04.041 Annexation by petition method—Hearing—Notice. If the petition for annexation filed with the
board of commissioners complies with the requirements of
law, the board may accept the petition, fix a date for public
hearing, and publish notice of the hearing in a newspaper of
general circulation in the area proposed to be annexed and
also post the notice in three public places within the area proposed for annexation. The notice shall specify the time and
place of the hearing and invite interested persons to attend.
The expense of publication of the notice shall be paid by the
district. [1984 c 230 § 25; 1965 c 59 § 3. Formerly RCW
52.08.067.]
52.04.041
52.04.051 Annexation by petition method—Resolution providing for annexation. After the hearing, the board
of fire commissioners shall determine by resolution whether
the area shall be annexed. It may annex all or any portion of
the proposed area but may not include in the annexation property not described in the petition. The proposed annexation
shall be subject to action by the county legislative authority,
as provided under RCW 52.04.011, to the same extent as if
52.04.051
(2004 Ed.)
Annexation
the annexation were done under the election method of
annexation. If the area proposed to be annexed under this procedure is reduced, the annexation shall occur only if the owners of not less than sixty percent of the remaining area have
signed the petition. After adoption of the resolution a copy
shall be filed with the county legislative authority or authorities within which the territory is located. [1989 c 63 § 10;
1984 c 230 § 26; 1965 c 59 § 4. Formerly RCW 52.08.068.]
52.04.056 Withdrawal or reannexation of areas. (1)
As provided in this section, a fire protection district may
withdraw areas from its boundaries, or reannex areas into the
fire protection district that previously had been withdrawn
from the fire protection district under this section.
(2) The withdrawal of an area shall be authorized upon:
(a) Adoption of a resolution by the board of fire commissioners requesting the withdrawal and finding that, in the opinion
of the board, inclusion of this area within the fire protection
district will result in a reduction of the district's tax levy rate
under the provisions of RCW 84.52.010; and (b) adoption of
a resolution by the city or town council approving the withdrawal, if the area is located within the city or town, or adoption of a resolution by the county legislative authority or
authorities of the county or counties within which the area is
located approving the withdrawal, if the area is located outside of a city or town. A withdrawal shall be effective at the
end of the day on the thirty-first day of December in the year
in which the resolutions are adopted, but for purposes of
establishing boundaries for property tax purposes, the boundaries shall be established immediately upon the adoption of
the second resolution.
The authority of an area to be withdrawn from a fire protection district as provided under this section is in addition,
and not subject, to the provisions of RCW 52.04.101.
The withdrawal of an area from the boundaries of a fire
protection district shall not exempt any property therein from
taxation for the purpose of paying the costs of redeeming any
indebtedness of the fire protection district existing at the time
of the withdrawal.
(3) An area that has been withdrawn from the boundaries
of a fire protection district under this section may be reannexed into the fire protection district upon: (a) Adoption of a
resolution by the board of fire commissioners proposing the
reannexation; and (b) adoption of a resolution by the city or
town council approving the reannexation, if the area is
located within the city or town, or adoption of a resolution by
the county legislative authority or authorities of the county or
counties within which the area is located approving the reannexation, if the area is located outside of a city or town. The
reannexation shall be effective at the end of the day on the
thirty-first day of December in the year in which the adoption
of the second resolution occurs, but for purposes of establishing boundaries for property tax purposes, the boundaries shall
be established immediately upon the adoption of the second
resolution. Referendum action on the proposed reannexation
may be taken by the voters of the area proposed to be reannexed if a petition calling for a referendum is filed with the
city or town council, or county legislative authority or authorities, within a thirty-day period after the adoption of the second resolution, which petition has been signed by registered
voters of the area proposed to be reannexed equal in number
52.04.056
(2004 Ed.)
52.04.071
to ten percent of the total number of the registered voters
residing in that area.
If a valid petition signed by the requisite number of registered voters has been so filed, the effect of the resolutions
shall be held in abeyance and a ballot proposition to authorize
the reannexation shall be submitted to the voters of the area at
the next special election date specified in *RCW 29.13.020
that occurs forty-five or more days after the petitions have
been validated. Approval of the ballot proposition authorizing the reannexation by a simple majority vote shall authorize
the reannexation. [1989 c 63 § 11; 1987 c 138 § 3.]
*Reviser's note: As enacted by 1987 c 138 § 3, this section contained
an apparently erroneous reference to RCW 29.13.030, a section repealed in
1965. Pursuant to RCW 1.08.015, this reference has been changed to RCW
29.13.020, a later enactment of the section repealed. RCW 29.13.020 was
subsequently recodified as RCW 29A.04.330 pursuant to 2003 c 111 § 2401,
effective July 1, 2004.
52.04.061
52.04.061 Annexation of adjacent city or town—Procedure. A city or town lying adjacent to a fire protection district may be annexed to such district if at the time of the initiation of annexation the population of the city or town is
100,000 or less. The legislative authority of the city or town
may initiate annexation by the adoption of an ordinance stating an intent to join the fire protection district and finding that
the public interest will be served thereby. If the board of fire
commissioners of the fire protection district shall concur in
the annexation, notification thereof shall be transmitted to the
legislative authority or authorities of the counties in which
the city or town and the district are situated. [1999 c 105 § 3;
1985 c 313 § 1; 1979 ex.s. c 179 § 1. Formerly RCW
52.04.170.]
52.04.071
52.04.071 Annexation of adjacent city or town—
Election. The county legislative authority or authorities shall
by resolution call a special election to be held in the city or
town and in the fire protection district at the next date provided in *RCW 29.13.010 but not less than forty-five days
from the date of the declaration of the finding, and shall cause
notice of the election to be given as provided for in *RCW
29.27.080.
The election on the annexation of the city or town into
the fire protection district shall be conducted by the auditor of
the county or counties in which the city or town and the fire
protection district are located in accordance with the general
election laws of the state. The results thereof shall be canvassed by the canvassing board of the county or counties. No
person is entitled to vote at the election unless he or she is a
qualified elector in the city or town or unless he or she is a
qualified elector within the boundaries of the fire protection
district. The ballot proposition shall be in substantially the
following form:
"Shall the city or town of . . . . . . be annexed to and be a
part of . . . . . . fire protection district?
YES . . . . . . . . . .
NO . . . . . . . . . . "
If a majority of the persons voting on the proposition in
the city or town and a majority of the persons voting on the
proposition in the fire protection district vote in favor thereof,
the city or town shall be annexed and shall be a part of the fire
[Title 52 RCW—page 5]
52.04.081
Title 52 RCW: Fire Protection Districts
protection district. [1984 c 230 § 16; 1979 ex.s. c 179 § 2.
Formerly RCW 52.04.180.]
*Reviser's note: RCW 29.13.010 and 29.27.080 were recodified as
RCW 29A.04.320 and 29A.52.350, respectively, pursuant to 2003 c 111 §
2401, effective July 1, 2004. RCW 29A.04.320 and 29A.52.350 were subsequently repealed by 2004 c 271 § 193.
Elections: Title 29A RCW.
52.04.081
52.04.081 Annexation of adjacent city or town—
Annual tax levies—Limitations. The annual tax levies
authorized by chapter 52.16 RCW shall be imposed throughout the fire protection district, including any city or town
annexed thereto. Any city or town annexed to a fire protection district is entitled to levy up to three dollars and sixty
cents per thousand dollars of assessed valuation less any regular levy made by the fire protection district or by a library
district under RCW 27.12.390 in the incorporated area:
PROVIDED, That the limitations upon regular property taxes
imposed by chapter 84.55 RCW apply. [1984 c 230 § 17;
1979 ex.s. c 179 § 4. Formerly RCW 52.04.190.]
52.04.091
52.04.091 Additional territory annexed by city to be
part of district. When any city, code city, or town is
annexed to a fire protection district under RCW 52.04.061
and 52.04.071, thereafter, any territory annexed by the city
shall also be annexed and be a part of the fire protection district. [1989 c 76 § 1.]
52.04.101
52.04.101 Withdrawal by annexed city or town—
Election. The legislative body of such a city or town which
has annexed to such a fire protection district, may, by resolution, present to the voters of such city or town a proposition
to withdraw from said fire protection district at any general
election held at least three years following the annexation to
the fire protection district. If the voters approve such a proposition to withdraw from said fire protection district, the city
or town shall have a vested right in the capital assets of the
district proportionate to the taxes levied within the corporate
boundaries of the city or town and utilized by the fire district
to acquire such assets. [1979 ex.s. c 179 § 3. Formerly RCW
52.04.200.]
52.04.111
52.04.111 Annexation of city or town—Transfer of
employees. When any city, code city or town is annexed to a
fire protection district under RCW 52.04.061 and 52.04.071,
any employee of the fire department of such city, code city or
town who (1) was at the time of annexation employed exclusively or principally in performing the powers, duties, and
functions which are to be performed by the fire protection
district (2) will, as a direct consequence of annexation, be
separated from the employ of the city, code city or town, and
(3) can perform the duties and meet the minimum requirements of the position to be filled, then such employee may
transfer his employment to the fire protection district as provided in this section and RCW 52.04.121 and 52.04.131.
For purposes of this section and RCW 52.04.121 and
52.04.131, employee means an individual whose employment with a city, code city or town has been terminated
because the city, code city or town was annexed by a fire protection district for purposes of fire protection. [1986 c 254 §
10.]
[Title 52 RCW—page 6]
52.04.121
52.04.121 Annexation of city or town—Transfer of
employees—Rights and benefits. (1) An eligible employee
may transfer into the fire protection district civil service system, if any, or if none, then may request transfer of employment under this section by filing a written request with the
board of fire commissioners of the fire protection district and
by giving written notice to the legislative authority of the
city, code city, or town. Upon receipt of such request by the
board of fire commissioners the transfer of employment shall
be made. The employee so transferring will (a) be on probation for the same period as are new employees of the fire protection district in the position filled, but if the transferring
employee has already completed a probationary period as a
fire fighter prior to the transfer, then the employee may only
be terminated during the probationary period for failure to
adequately perform assigned duties, not meeting the minimum qualifications of the position, or behavior that would
otherwise be subject to disciplinary action, (b) be eligible for
promotion no later than after completion of the probationary
period, (c) receive a salary at least equal to that of other new
employees of the fire protection district in the position filled,
and (d) in all other matters, such as retirement, vacation, and
sick leave, have all the rights, benefits, and privileges to
which he or she would have been entitled as an employee of
the fire protection district from the beginning of employment
with the city, code city, or town fire department: PROVIDED, That for purposes of layoffs by the annexing fire
agency, only the time of service accrued with the annexing
agency shall apply unless an agreement is reached between
the collective bargaining representatives of the employees of
the annexing and annexed fire agencies and the annexing and
annexed fire agencies. The city, code city, or town shall, upon
receipt of such notice, transmit to the board of fire commissioners a record of the employee's service with the city, code
city, or town which shall be credited to such employee as a
part of the period of employment in the fire protection district. All accrued benefits are transferable provided that the
recipient agency provides comparable benefits. All benefits
shall then accrue based on the combined seniority of each
employee in the recipient agency.
(2) As many of the transferring employees shall be
placed upon the payroll of the fire protection district as the
district determines are needed to provide services. These
needed employees shall be taken in order of seniority and the
remaining employees who transfer as provided in this section
and RCW 52.04.111 and 52.04.131 shall head the list for
employment in the civil service system in order of their
seniority, to the end that they shall be the first to be reemployed in the fire protection district when appropriate positions become available: PROVIDED, That employees who
are not immediately hired by the fire protection district shall
be placed on a reemployment list for a period not to exceed
thirty-six months unless a longer period is authorized by an
agreement reached between the collective bargaining representatives of the employees of the annexing and annexed fire
agencies and the annexing and annexed fire agencies. [1994
c 73 § 4; 1986 c 254 § 11.]
Effective date—1994 c 73: See note following RCW 35.10.365.
52.04.131
52.04.131 Annexation of city or town—Transfer of
employees—Notice—Time limitation. When a city, code
(2004 Ed.)
Merger
city or town is annexed to a fire protection district and as a
result any employee is laid off who is eligible to transfer to
the fire protection district pursuant to this section and RCW
52.04.111 and 52.04.121, the city, code city or town shall
notify the employee of the right to transfer and the employee
shall have ninety days to transfer employment to the fire protection district. [1986 c 254 § 12.]
52.04.141
52.04.141 Annexation of contiguous territory not in
same county. Any attempted annexation in 1987 and thereafter by a fire protection district of contiguous territory, that
is located in a county other than the county in which the fire
protection district was located, is validated where the annexation would have occurred if the territory had been located in
the same county as the fire protection district. The effective
date of such annexations occurring in 1987 shall be February
1, 1988, for purposes of establishing the boundaries of taxing
districts for purposes of imposing property taxes as provided
in RCW 84.09.030.
Any reference to a county official of the county in which
a fire protection district is located or proposed to be located
shall be deemed to refer to the appropriate county official of
each county in which the fire protection district is located or
proposed to be located. [1988 c 274 § 12.]
Purpose—Severability—1988 c 274: See notes following RCW
84.52.010.
52.04.151
52.04.151 Annexation of territory not in same
county—District name. Any fire protection district located
in a single county that annexes territory in another county
shall be identified by the name of each county in which the
fire protection district is located, listed alphabetically, followed by a number that is the next highest number available
for a fire protection district in the one of these counties that
has the greatest number of fire protection districts. [1989 c
63 § 12.]
52.04.161
52.04.161 Newly incorporated city or town deemed
annexed by district—Withdrawal. If the area of a newly
incorporated city or town is located in one or more fire protection districts, the city or town is deemed to have been
annexed by the fire protection district or districts effective
immediately on the city's or town's official date of incorporation, unless the city or town council adopts a resolution during the interim transition period precluding the annexation of
the newly incorporated city or town by the fire protection district or districts. The newly incorporated city or town shall
remain annexed to the fire protection district or districts for
the remainder of the year of the city's or town's official date
of incorporation, or through the following year if such extension is approved by resolution adopted by the city or town
council and by the board or boards of fire commissioners, and
shall be withdrawn from the fire protection district or districts
at the end of this period, unless a ballot proposition is adopted
by the voters providing for annexation of the city or town to
one fire protection district or providing for the fire protection
district or districts to annex only that area of the city or town
located within the district. Such election shall be held pursuant to RCW 52.04.071 where possible, provided that in
annexations to more than one fire protection district, the qual(2004 Ed.)
52.06.020
ified elector shall reside within the boundaries of the appropriate fire protection district or in that area of the city located
within the district.
If the city or town is withdrawn from the fire protection
district or districts, the maximum rate of the first property tax
levy that is imposed by the city or town after the withdrawal
is calculated as if the city or town never had been annexed by
the fire protection district or districts. [2003 c 253 § 1; 1993
c 262 § 1.]
Chapter 52.06
Chapter 52.06 RCW
MERGER
Sections
52.06.001
52.06.010
52.06.020
52.06.030
52.06.050
52.06.060
52.06.070
52.06.080
52.06.085
52.06.090
52.06.100
52.06.110
52.06.120
52.06.130
52.06.140
52.06.150
Actions subject to review by boundary review board.
Merger of districts authorized—Review.
Petition—Contents.
Action on petition—Special election.
Vote required—Status after favorable vote.
Merger by petition.
Obligations of merged districts.
Delivery of property and funds.
Board membership upon merger of districts—Subsequent
boards—Creation of commissioner districts.
Merger of part of district with adjacent district.
Merger of part of district with adjacent district—When election unnecessary.
Transfer of employees.
Transfer of employees—Rights and benefits.
Transfer of employees—Notice—Time limitation.
Merger of districts located in different counties—District
name.
Merger of districts located in same county—District name.
52.06.001
52.06.001 Actions subject to review by boundary
review board. Actions taken under chapter 52.06 RCW may
be subject to potential review by a boundary review board
under chapter 36.93 RCW. [1989 c 84 § 43.]
52.06.010
52.06.010 Merger of districts authorized—Review.
A fire protection district may merge with another adjacent
fire protection district, on such terms and conditions as they
agree upon, in the manner provided in this title. The fire protection districts may be located in different counties. The district desiring to merge with another district, or the district
from which it is proposed that a portion of the district be
merged with another district, shall be called the "merging district." The district into which the merger is to be made shall
be called the "merger district." The merger of any districts
under chapter 52.06 RCW is subject to potential review by
the boundary review board or boards of the county in which
the merging district, or the portion of the merging district that
is proposed to be merged with another district, is located.
[1989 c 63 § 13; 1984 c 230 § 57; 1947 c 254 § 12; Rem.
Supp. 1947 § 5654-151a. Formerly RCW 52.24.010.]
52.06.020
52.06.020 Petition—Contents. To effect such a
merger, a petition to merge shall be filed with the board of the
merger district by the commissioners of the merging district.
The commissioners of the merging district may sign and file
the petition on their own initiative, and they shall file a petition when it is signed by ten percent of the registered voters
resident in the merging district who voted in the last general
municipal election and presented to the board of commissioners. The petition shall state the reasons for the merger, state
[Title 52 RCW—page 7]
52.06.030
Title 52 RCW: Fire Protection Districts
the terms and conditions under which the merger is proposed,
and request the merger. [1990 c 259 § 13; 1984 c 230 § 58;
1947 c 254 § 13; Rem. Supp. 1947 § 5654-151b. Formerly
RCW 52.24.020.]
52.06.030
52.06.030 Action on petition—Special election. The
board of the merger district may, by resolution, reject or
approve the petition as presented, or it may modify the terms
and conditions of the proposed merger, and shall transmit the
petition, together with a copy of its resolution to the merging
district.
If the petition is approved as presented or as modified,
the board of the merging district shall send an elector-signed
petition, if there is one, to the auditor or auditors of the county
or counties in which the merging district is located, who shall
within thirty days examine the signatures and certify to the
sufficiency or insufficiency of the signatures. If the merging
district is located in more than one county, the auditor of the
county within which the largest portion of the merging district is located shall be the lead auditor. Each other auditor
shall certify to the lead auditor the number of valid signatures
and the number of registered voters of the merging district
who reside in the county. The lead auditor shall certify as to
the sufficiency or insufficiency of the signatures. No signatures may be withdrawn from the petition after the filing. A
certificate of sufficiency shall be provided to the board of the
merging district, which shall adopt a resolution requesting the
county auditor or auditors to call a special election, as provided in *RCW 29.13.020, for the purpose of presenting the
question of merging the districts to the voters of the merging
district.
If there is no elector-signed petition, the merging district
board shall adopt a resolution requesting the county auditor
or auditors to call a special election in the merging district, as
specified under *RCW 29.13.020, for the purpose of presenting the question of the merger to the electors. [1989 c 63 §
14; 1984 c 230 § 59; 1947 c 254 § 14; Rem. Supp. 1947 §
5654-151c. Formerly RCW 52.24.030.]
*Reviser's note: RCW 29.13.020 was recodified as RCW 29A.04.330
pursuant to 2003 c 111 § 2401, effective July 1, 2004.
and the auditor, or lead auditor if the merging district is
located in more than a single county, shall return the petition,
together with a certificate of sufficiency to the board of the
merging district. The boards of the respective districts shall
then adopt resolutions declaring the districts merged in the
same manner and to the same effect as if the merger had been
authorized by an election. [1989 c 63 § 15; 1984 c 230 § 61;
1947 c 254 § 17; Rem. Supp. 1947 § 5654-151f. Formerly
RCW 52.24.060.]
52.06.070
52.06.070 Obligations of merged districts. None of
the obligations of the merged districts or of a local improvement district located in the merged districts may be affected
by the merger and dissolution, and all land liable to be
assessed to pay any of the indebtedness shall remain liable to
the same extent as if the districts had not been merged and
any assessments previously levied against the land shall
remain unimpaired and shall be collected in the same manner
as if the districts had not merged. The commissioners of the
merged district shall have all the powers of the two districts
to levy, assess, and cause to be collected all assessments
against any land in both districts that may be necessary to pay
for the indebtedness thereof, and until the assessments are
collected and all indebtedness of the districts paid, separate
funds shall be maintained for each district as were maintained
before the merger: PROVIDED, That the board of the
merged district may, with the consent of the creditors of the
districts merged, cancel any or all assessments previously
levied, in accordance with the terms and conditions of the
merger, so that the lands in the respective districts bear their
fair and proportionate share of the indebtedness. [1984 c 230
§ 62; 1947 c 254 § 18; Rem. Supp. 1947 § 5654-151g. Formerly RCW 52.24.070.]
52.06.080
52.06.080 Delivery of property and funds. The commissioners of the merging district shall, upon completion of
the merger, transfer, convey, and deliver to the merged district all property and funds of the merging district, together
with all interest in and right to collect any assessments previously levied. [1984 c 230 § 63; 1947 c 254 § 19; Rem. Supp.
1947 § 5654-151h. Formerly RCW 52.24.080.]
52.06.050
52.06.050 Vote required—Status after favorable
vote. The board of the merging district shall notify the board
of the merger district of the results of the election. If a majority of the votes cast at the election favor the merger, the
respective district boards shall adopt concurrent resolutions,
declaring the districts merged, under the name of the merger
district. Thereupon the districts are merged into one district,
under the name of the merger district; the merging district is
dissolved without further proceedings; and the boundaries of
the merger district are thereby extended to include all the area
of the merging district. Thereafter the legal existence cannot
be questioned by any person by reason of any defect in the
proceedings had for the merger. [1995 c 79 § 1; 1947 c 254
§ 16; Rem. Supp. 1947 § 5654-151e. Formerly RCW
52.24.050.]
52.06.060
52.06.060 Merger by petition. If three-fifths of all the
qualified electors in the merging district sign the petition to
merge, no election on the question of the merger is necessary
[Title 52 RCW—page 8]
52.06.085
52.06.085 Board membership upon merger of districts—Subsequent boards—Creation of commissioner
districts. (1) Whenever two or more fire protection districts
merge, the board of fire commissioners of the merged fire
protection district shall consist of all of the fire commissioners of the districts that are merging, including a person who is
elected as a fire commissioner of one of the merging districts
at that same election that the ballot proposition was approved
authorizing the merger, who shall retain the same terms of
office they would possess as if the merger had not been
approved. The number of members on the board of the
merged district shall be reduced to either three or five members as provided in subsections (2) and (3) of this section,
depending on whether the district has chosen to eventually
have either a three-member or a five-member board under
RCW 52.14.020.
(2) The number of members on the board of the merged
district shall be reduced by one whenever a fire commis(2004 Ed.)
Merger
sioner resigns from office or a vacancy otherwise occurs on
the board, until the number of remaining members is reduced
to the number of members that is chosen for the board eventually to have. The reduction of membership on the board
shall not be considered to be a vacancy that is to be filled until
the number of remaining members is less than the number of
members on the board that is chosen for the board eventually
to have.
(3) At the next three district general elections after the
merger is approved, the number of fire commissioners for the
merged district that are elected shall be as follows, notwithstanding the number of fire commissioners whose terms
expire:
(a) In the first election after the merger, only one position
shall be filled, whether the new fire protection district be a
three-member district or a five-member district.
(b) In each of the two subsequent elections, one position
shall be filled if the new fire protection district is a threemember district and two positions shall be filled if the new
fire protection district is a five-member district.
Thereafter, the fire commissioners shall be elected in the
same manner as prescribed for such fire protection districts of
the state.
(4) A ballot proposition to create commissioner districts
may be submitted to the voters of the fire protection districts
proposed to be merged at the same election the ballot proposition is submitted authorizing the merging of the fire protection districts. The procedure to create commissioner districts
shall conform with RCW 52.14.013, except that: (a) Resolutions proposing the creation of commissioner districts must
be adopted by unanimous vote of the boards of fire commissioners of each of the fire protection districts that are proposed to be merged; and (b) commissioner districts will be
authorized only if the ballot propositions to authorize the
merger and to create commissioner districts are both
approved. A ballot proposition authorizing the creation of
commissioner districts is approved if it is approved by a simple majority vote of the combined voters of all the fire protection districts proposed to be merged. The commissioner districts shall not be drawn until the number of commissioners in
the fire protection district has been reduced under subsections
(1) through (3) of this section to either three or five commissioners. After this reduction of fire commissioners has
occurred the commissioner districts shall be drawn and used
for the election of the successor fire commissioners. [1994 c
14 § 1; 1992 c 74 § 1; 1985 c 7 § 118; 1977 ex.s. c 121 § 1;
1971 c 55 § 1. Formerly RCW 52.24.085.]
52.06.120
the commissioners of the merger district approve the petition,
an election shall be called in the area to be merged.
In the event that either board of fire district commissioners does not approve the petition, the petition may be
approved by the boundary review board of the county or the
county legislative authority of the county in which the area to
be merged is situated, and may approve the merger if it
decides the area can be better served by a merger. If the part
of the merging district that is proposed to merge with the
merger district is located in more than one county, the
approval must be by the boundary review board or county
legislative authority of each county. If there is an affirmative
decision, an election shall be called in the area to be merged.
A majority of the votes cast is necessary to approve the
transfer. [1989 c 63 § 16; 1984 c 230 § 64; 1965 ex.s. c 18 §
2; 1963 c 42 § 1; 1953 c 176 § 5. Formerly RCW 52.24.090.]
52.06.100
52.06.100 Merger of part of district with adjacent
district—When election unnecessary. If three-fifths of the
qualified electors in the area to be merged sign a petition to
merge the districts, no election on the question of the merger
is necessary, in which case the auditor or lead auditor shall
return the petition, together with a certificate of sufficiency,
to the board of the merger district. The board of the merger
district shall then adopt a resolution declaring the portion of
the district merged in the same manner and to the same effect
as if the same had been authorized by an election. [1989 c 63
§ 17; 1984 c 230 § 65; 1953 c 176 § 6. Formerly RCW
52.24.100.]
52.06.110
52.06.110 Transfer of employees. When any portion
of a fire protection district merges with another fire protection district, any employee of the merging district who (1)
was at the time of merger employed exclusively or principally in performing the powers, duties, and functions which
are to be performed by the merger district (2) will, as a direct
consequence of the merger, be separated from the employ of
the merging district, and (3) can perform the duties and meet
the minimum requirements of the position to be filled, then
such employee may transfer employment to the merger district as provided in this section and RCW 52.06.120 and
52.06.130.
For purposes of this section and RCW 52.06.120 and
52.06.130, employee means an individual whose employment with a fire protection district has been terminated
because the fire protection district merged with another fire
protection district for purposes of fire protection. [1986 c
254 § 13.]
52.06.090
52.06.090 Merger of part of district with adjacent
district. A part of one district may be transferred and merged
with an adjacent district if the area can be better served by the
merged district. To effect such a merger, a petition, signed by
a majority of the commissioners of the merging district or
signed by not less than fifteen percent of the qualified electors residing in the area to be merged, shall be filed with the
commissioners of the merging district, if signed by electors,
or with the commissioners of the merger district if signed by
commissioners of the merging district. If the commissioners
of the merging district approve the petition, the petition shall
be presented to the commissioners of the merger district. If
(2004 Ed.)
52.06.120
52.06.120 Transfer of employees—Rights and benefits. (1) An eligible employee may transfer into the merger
district by filing a written request with the board of fire commissioners of the merger district and by giving written notice
to the board of fire commissioners of the merging district.
Upon receipt of such request by the board of the merger district the transfer of employment shall be made. The employee
so transferring will (a) be on probation for the same period as
are new employees of the merger district in the position
filled, but if the transferring employee has already completed
a probationary period as a fire fighter prior to the transfer,
[Title 52 RCW—page 9]
52.06.130
Title 52 RCW: Fire Protection Districts
then the employee may only be terminated during the probationary period for failure to adequately perform assigned
duties, not meeting the minimum qualifications of the position, or behavior that would otherwise be subject to disciplinary action, (b) be eligible for promotion no later than after
completion of the probationary period, (c) receive a salary at
least equal to that of other new employees of the merger district in the position filled, and (d) in all other matters, such as
retirement, vacation, and sick leave, have, all the rights, benefits, and privileges to which he or she would have been entitled to as an employee of the merger district from the beginning of employment with the merging district: PROVIDED,
That for purposes of layoffs by the merger fire agency, only
the time of service accrued with the merger agency shall
apply unless an agreement is reached between the collective
bargaining representatives of the employees of the merging
and merger fire agencies and the merging and merger fire
agencies. The board of the merging district shall, upon
receipt of such notice, transmit to the board of the merger district a record of the employee's service with the merging district which shall be credited to such employee as a part of the
period of employment in the merger district. All accrued benefits are transferable provided that the recipient agency provides comparable benefits. All benefits shall then accrue
based on the combined seniority of each employee in the
recipient agency.
(2) As many of the transferring employees shall be
placed upon the payroll of the merger district as the merger
district determines are needed to provide services. These
needed employees shall be taken in order of seniority and the
remaining employees who transfer as provided in this section
and RCW 52.06.110 and 52.06.130 shall head the list for
employment in order of their seniority, to the end that they
shall be the first to be reemployed in the merger district when
appropriate positions become available: PROVIDED, That
employees who are not immediately hired by the fire protection district shall be placed on a reemployment list for a
period not to exceed thirty-six months unless a longer period
is authorized by an agreement reached between the collective
bargaining representatives of the employees of the merging
and merged fire agencies and the merging and merged fire
agencies. [1994 c 73 § 5; 1986 c 254 § 14.]
Effective date—1994 c 73: See note following RCW 35.10.365.
52.06.130
52.06.130 Transfer of employees—Notice—Time
limitation. If, as a result of merging of districts any
employee is laid off who is eligible to transfer to the merger
district under this section and RCW 52.06.110 and 52.06.120,
the merging district shall notify the employee of the right to
transfer and the employee shall have ninety days to transfer
employment to the merger district. [1986 c 254 § 15.]
52.06.140
52.06.140 Merger of districts located in different
counties—District name. A merger fire protection district
located in a single county, that merged with a merging fire
protection district located in another county or counties, shall
be identified by the name of each county in which the fire
protection district is located, listed alphabetically, followed
by a number that is the next highest number available for a
[Title 52 RCW—page 10]
fire protection district in the one of these counties that has the
greatest number of fire protection districts. [1989 c 63 § 18.]
52.06.150
52.06.150 Merger of districts located in same
county—District name. A fire protection district resulting
from the merger of two or more fire protection districts
located in the same county shall be identified by the name of
the county and the number of the merger fire protection district. However, the fire protection district resulting from such
a merger shall be identified by the number of the merging district or one of the merging districts if a resolution providing
for this number change is adopted by the board of fire commissioners of the district resulting from the merger or if resolutions providing for this number change are adopted by each
of the boards of fire commissioners of the districts proposed
to be merged. [1992 c 74 § 3.]
Chapter 52.08
Chapter 52.08 RCW
WITHDRAWAL
Sections
52.08.001
52.08.011
52.08.021
52.08.025
52.08.032
52.08.035
52.08.041
52.08.051
Actions subject to review by boundary review board.
Withdrawal authorized.
Withdrawal by incorporation of part of district.
City may not be included within district—Exceptions—Withdrawal of city.
Levy for emergency medical care and services.
City withdrawn to determine fire and emergency medical protection methods—Contracts—Joint operations—Sale, lease,
etc., of property.
Taxes and assessments unaffected.
Commissioners residing in territory withdrawn—Vacancy created.
Special purpose districts, expenditures to recruit job candidates: RCW
42.24.170.
52.08.001
52.08.001 Actions subject to review by boundary
review board. Actions taken under chapter 52.08 RCW may
be subject to potential review by a boundary review board
under chapter 36.93 RCW. [1989 c 84 § 44.]
52.08.011
52.08.011 Withdrawal authorized. Territory within a
fire protection district may be withdrawn from the district in
the same manner provided by law for withdrawal of territory
from water-sewer districts, as provided by chapter 57.28
RCW. [1999 c 153 § 61; 1984 c 230 § 54; 1955 c 111 § 1.
Formerly RCW 52.22.010.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Withdrawal or reannexation of areas: RCW 52.04.056.
52.08.021
52.08.021 Withdrawal by incorporation of part of
district. The incorporation of any previously unincorporated
land lying within a fire protection district shall operate to
automatically withdraw such lands from the fire protection
district. [1959 c 237 § 5; 1955 c 111 § 2. Formerly RCW
52.22.020.]
52.08.025
52.08.025 City may not be included within district—
Exceptions—Withdrawal of city. Effective January 1,
1960, every city or town, or portion thereof, which is situated
within the boundaries of a fire protection district shall
become automatically removed from such fire protection dis(2004 Ed.)
Dissolution
trict, and no fire protection district shall thereafter include
any city or town, or portion thereof, within its boundaries
except as provided for in RCW 52.02.020, 52.04.061,
52.04.071, 52.04.081, 52.04.101, and 52.04.161.
However, if the area which incorporates or is annexed
includes all of a fire protection district, the fire protection district, for purposes of imposing regular property taxes, shall
continue in existence: (1)(a) Until the first day of January in
the year in which the initial property tax collections of the
newly incorporated city or town will be made, if a resolution
is adopted under RCW 52.04.161 precluding annexation of
the city or town to the district; (b) until the city or town is
withdrawn from the fire protection district, if no such resolution is adopted and no ballot proposition under RCW
52.04.161 is approved; or (c) indefinitely, if such a ballot
proposition is approved; or (2) until the first day of January in
the year the annexing city or town will collect its property
taxes imposed on the newly annexed area. The members of
the city or town council or commission shall act as the board
of commissioners to impose, receive, and expend these property taxes. [1993 c 262 § 2; 1986 c 234 § 35; 1985 c 7 § 119;
1979 ex.s. c 179 § 6; 1959 c 237 § 6. Formerly RCW
52.22.030.]
52.08.032
52.08.032 Levy for emergency medical care and services. See RCW 84.52.069.
52.08.035
52.08.035 City withdrawn to determine fire and
emergency medical protection methods—Contracts—
Joint operations—Sale, lease, etc., of property. A city or
town encompassing territory withdrawn under chapter 52.08
RCW shall determine the most effective and feasible fire protection and emergency medical protection for the withdrawn
territory, or any part thereof, and the legislative authority of
the city or town and the commissioners of the fire protection
district may, without limitation of any other powers provided
by law:
(1) Enter into contracts to the same extent as fire protection districts and cities and towns may enter into contracts
under authority of RCW 52.12.031(3), and
(2) Sell, purchase, rent, lease, or exchange property of
every nature. [1984 c 230 § 55; 1959 c 237 § 8. Formerly
RCW 52.22.040.]
Chapter 52.12
Chapter 52.10
Chapter 52.10 RCW
DISSOLUTION
Sections
52.10.001
52.10.010
52.10.020
Actions subject to review by boundary review board.
Dissolution—Election method.
Disincorporation of district located in county with a population of two hundred ten thousand or more and inactive for
five years.
52.10.001
52.10.001 Actions subject to review by boundary
review board. Actions taken under chapter 52.10 RCW may
be subject to potential review by a boundary review board
under chapter 36.93 RCW. [1989 c 84 § 45.]
52.10.010
52.10.010 Dissolution—Election method. Fire protection districts may be dissolved by a majority vote of the registered electors of the district at an election conducted by the
election officials of the county or counties in which the district is located in accordance with the general election laws of
the state. The proceedings for dissolution may be initiated by
the adoption of a resolution by the board of commissioners of
the district calling for the dissolution. The dissolution of the
district shall not cancel outstanding obligations of the district
or of a local improvement district within the district, and the
county legislative authority or authorities of the county or
counties in which the district was located may make annual
levies against the lands within the district until the obligations of the districts are paid. When the obligations are fully
paid, all moneys in district funds and all collections of unpaid
district taxes shall be transferred to the expense fund of the
county. Where the fire protection district that was dissolved
was located in more than one county, the amount of money
transferred to the expense fund of each county shall be in
direct proportion to the amount of assessed valuation of the
fire protection district that was located in each county at the
time of its dissolution. [1989 c 63 § 19; 1984 c 230 § 15;
1939 c 34 § 46; RRS § 5654-146. Formerly RCW 52.04.155.]
Dissolution of special purpose districts: Chapters 36.96 and 53.48 RCW.
52.10.020
52.10.020 Disincorporation of district located in
county with a population of two hundred ten thousand or
more and inactive for five years. See chapter 57.90 RCW.
Chapter 52.12
Chapter 52.12 RCW
POWERS—BURNING PERMITS
Sections
52.08.041
52.08.041 Taxes and assessments unaffected. The
provisions of RCW 57.28.110 shall apply to territory withdrawn from a fire protection district under the provision of
chapter 52.08 RCW. [1985 c 7 § 120; 1959 c 237 § 7. Formerly RCW 52.22.050.]
52.12.011
52.12.021
52.12.031
52.12.036
52.12.041
52.12.051
52.12.061
52.08.051
52.08.051 Commissioners residing in territory withdrawn—Vacancy created. Fire protection district commissioners residing in territory withdrawn from a fire protection
district shall be replaced in the manner provided for the filling of vacancies in RCW 52.14.050. [1984 c 230 § 56; 1959
c 237 § 9. Formerly RCW 52.22.060.]
(2004 Ed.)
52.12.071
52.12.101
52.12.102
52.12.103
52.12.104
52.12.105
52.12.106
Status.
General powers.
Specific powers—Acquisition or lease of property or equipment—Contracts—Association of districts—Group life
insurance—Building inspections—Fire investigations.
Community revitalization financing—Public improvements.
Eminent domain.
Condemnation proceedings.
Contracts, promissory notes, deeds of trust, and mortgages for
purchase of property—Limit on indebtedness—Election,
when.
Liability insurance for officials and employees.
Burning permits authorized—Resolution.
Burning permits—Resolution to be published and posted.
Burning permits—Issuance—Contents.
Burning permits—Duties of permittee.
Burning permits—Penalty.
Burning permits—Penalty.
[Title 52 RCW—page 11]
52.12.011
52.12.108
52.12.111
52.12.121
52.12.125
52.12.131
52.12.135
52.12.140
52.12.150
Title 52 RCW: Fire Protection Districts
Burning permits—Liability for fire suppression costs.
Use of equipment and personnel beyond district boundaries—
Governmental function.
Use of equipment and personnel outside district—Duty of fire
fighter deemed duty for district—Benefits not impaired.
Reimbursement for fire suppression costs on state lands—
Limitations.
Emergency medical services—Establishment and collection of
charges.
Interlocal agreements for ambulance services.
Hazardous materials response teams.
Setting fires for fire fighter instruction—When burning permit
not required—Notice, inspection required.
Association of fire commissioners to furnish information to legislature and
governor: RCW 44.04.170.
52.12.011 Status. Fire protection districts created under
this title are political subdivisions of the state and shall be
held to be municipal corporations within the laws and Constitution of the state of Washington. A fire protection district
shall constitute a body corporate and possess all the usual
powers of a corporation for public purposes as well as all
other powers that may now or hereafter be specifically conferred by law. [1984 c 230 § 18; 1967 c 164 § 5; 1939 c 34 §
15; RRS § 5654-115. Formerly RCW 52.08.010.]
52.12.011
Purpose—Severability—1967 c 164: See notes following RCW
4.96.010.
Tortious conduct of political subdivisions, municipal corporations, and
quasi municipal corporations, liability for damages: Chapter 4.96
RCW.
52.12.021 General powers. Fire protection districts
have full authority to carry out their purposes and to that end
may acquire, purchase, hold, lease, manage, occupy, and sell
real and personal property, or any interest therein, to enter
into and to perform any and all necessary contracts, to
appoint and employ the necessary officers, agents, and
employees, to sue and be sued, to exercise the right of eminent domain, to levy and enforce the collection of assessments and special taxes in the manner and subject to the limitations provided in this title against the lands within the district for district revenues, and to do any and all lawful acts
required and expedient to carry out the purpose of this title.
[1984 c 230 § 19; 1939 c 34 § 16; RRS § 5654-116. Formerly
RCW 52.08.020.]
52.12.021
52.12.031 Specific powers—Acquisition or lease of
property or equipment—Contracts—Association of districts—Group life insurance—Building inspections—Fire
investigations. Any fire protection district organized under
this title may:
(1) Lease, acquire, own, maintain, operate, and provide
fire and emergency medical apparatus and all other necessary
or proper facilities, machinery, and equipment for the prevention and suppression of fires, the providing of emergency
medical services and the protection of life and property;
(2) Lease, acquire, own, maintain, and operate real property, improvements, and fixtures for housing, repairing, and
maintaining the apparatus, facilities, machinery, and equipment described in subsection (1) of this section;
(3) Contract with any governmental entity under chapter
39.34 RCW or private person or entity to consolidate, provide, or cooperate for fire prevention protection, fire suppression, investigation, and emergency medical purposes. In so
contracting, the district or governmental entity is deemed for
52.12.031
[Title 52 RCW—page 12]
all purposes to be acting within its governmental capacity.
This contracting authority includes the furnishing of fire prevention, fire suppression, investigation, emergency medical
services, facilities, and equipment to or by the district, governmental entity, or private person or entity;
(4) Encourage uniformity and coordination of fire protection district operations. The fire commissioners of fire protection districts may form an association to secure information of value in suppressing and preventing fires and other
district purposes, to hold and attend meetings, and to promote
more economical and efficient operation of the associated
fire protection districts. The commissioners of fire protection
districts in the association shall adopt articles of association
or articles of incorporation for a nonprofit corporation, select
a chairman, secretary, and other officers as they may determine, and may employ and discharge agents and employees
as the officers deem convenient to carry out the purposes of
the association. The expenses of the association may be paid
from funds paid into the association by fire protection districts: PROVIDED, That the aggregate contributions made to
the association by a district in a calendar year shall not
exceed two and one-half cents per thousand dollars of
assessed valuation;
(5) Enter into contracts to provide group life insurance
for the benefit of the personnel of the fire districts;
(6) Perform building and property inspections that the
district deems necessary to provide fire prevention services
and pre-fire planning within the district and any area that the
district serves by contract in accordance with RCW
19.27.110: PROVIDED, That codes used by the district for
building and property inspections shall be limited to the
applicable codes adopted by the state, county, city, or town
that has jurisdiction over the area in which the property is
located. A copy of inspection reports prepared by the district
shall be furnished by the district to the appropriate state,
county, city, or town that has jurisdiction over the area in
which the property is located: PROVIDED, That nothing in
this subsection shall be construed to grant code enforcement
authority to a district. This subsection shall not be construed
as imposing liability on any governmental jurisdiction;
(7) Determine the origin and cause of fires occurring
within the district and any area the district serves by contract.
In exercising the authority conferred by this subsection, the
fire protection district and its authorized representatives shall
comply with the provisions of RCW 48.48.060;
(8) Perform acts consistent with this title and not otherwise prohibited by law. [1995 c 369 § 65; 1986 c 311 § 1;
1984 c 238 § 1; 1973 1st ex.s. c 195 § 48; 1963 c 101 § 1;
1959 c 237 § 2; 1947 c 254 § 6; 1941 c 70 § 4; 1939 c 34 §
20; Rem. Sup p. 19 47 § 565 4-1 20. For merly RCW
52.08.030.]
Effective date—1995 c 369: See note following RCW 43.43.930.
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
Hospitalization and medical insurance authorized: RCW 41.04.180.
Use of city fire apparatus beyond city limits: RCW 35.84.040.
52.12.036
52.12.036 Community revitalization financing—
Public improvements. In addition to other authority that a
fire protection district possesses, a fire protection district may
(2004 Ed.)
Powers—Burning Permits
provide any public improvement as defined under RCW
39.89.020, but this additional authority is limited to participating in the financing of the public improvements as provided under RCW 39.89.050.
This section does not limit the authority of a fire protection district to otherwise participate in the public improvements if that authority exists elsewhere. [2001 c 212 § 17.]
52.12.103
promissory notes, deeds of trust, or mortgages authorized by
this section with any governmental entity.
The term "value of the taxable property" shall have the
meaning set forth in RCW 39.36.015. [1984 c 230 § 27; 1970
ex.s. c 42 § 29; 1965 c 21 § 1. Formerly RCW 52.08.080.]
Severability—Effective date—1970 ex.s. c 42: See notes following
RCW 39.36.015.
Severability—2001 c 212: See RCW 39.89.902.
52.12.071
52.12.041
52.12.041 Eminent domain. The taking and damaging
of property or property rights by a fire protection district to
carry out the purposes of its organization are declared to be
for a public use. A district organized under this title may
exercise the power of eminent domain to acquire property or
property rights either inside or outside the district, for the use
of the district. A district exercising the power of eminent
domain shall proceed in the name of the district in the manner
provided by law for the appropriation of real property or of
real property rights by private corporations. [1984 c 230 §
20; 1939 c 34 § 18; RRS § 5654-118. Formerly RCW
52.08.040.]
Eminent domain: State Constitution Art. 1 § 16 (Amendment 9); chapter
8.20 RCW.
52.12.051
52.12.051 Condemnation proceedings. A fire protection district may unite in a single action, proceedings to condemn property which is held by separate owners. Two or
more condemnation suits instituted separately may also, in
the discretion of the court, upon a motion of an interested
party, be consolidated into a single action. In these cases, the
jury shall render separate verdicts for each tract of land in different ownership. A finding of the jury or decree of the court
as to damages shall not in any manner be construed to abridge
or destroy the right of the district to levy and collect taxes for
district purposes against the uncondemned land situated
within the district. The title acquired by a fire protection district in condemnation proceedings shall be the fee simple title
or a lesser estate as designated in the decree of appropriation.
[1984 c 230 § 21; 1939 c 34 § 19; RRS § 5654-119. Formerly
RCW 52.08.050.]
52.12.061
52.12.061 Contracts, promissory notes, deeds of
trust, and mortgages for purchase of property—Limit on
indebtedness—Election, when. Fire protection districts
may execute executory conditional sales contracts, installment promissory notes secured by a deed of trust, or mortgages with a governmental entity or a private party for the
purchase or sale of any real or personal property, or property
rights: PROVIDED, That the purchase price specified in a
contract or promissory note to purchase property does not
result in a total indebtedness in excess of three-eighths of one
percent of the value of the taxable property in the fire protection district: PROVIDED FURTHER, That if a proposed
purchase contract or promissory note would result in a total
indebtedness in excess of that amount, a proposition to determine whether that contract or promissory note may be executed shall be submitted to the voters for approval or rejection in the same manner that bond issues for capital purposes
are submitted to the voters: AND PROVIDED FURTHER,
That a fire protection district may jointly execute contracts,
(2004 Ed.)
52.12.071 Liability insurance for officials and
employees. The board of commissioners of each fire district
may purchase liability insurance with limits it deems reasonable for the purpose of protecting its officials and employees
against liability for personal or bodily injuries and property
damage arising from their acts or omissions while performing
or in good faith purporting to perform their official duties.
[1984 c 230 § 28; 1973 c 125 § 3. Formerly RCW 52.08.090.]
52.12.101
52.12.101 Burning permits authorized—Resolution.
In any district in which the commissioners have adopted and
published a resolution assuming the authority of issuing
burning permits, a person, firm, or corporation shall not start,
permit, or cause to be started or permitted an open fire on any
land within a fire protection district, without a written permit
issued by the district under terms and conditions as the district establishes by resolution. A fire district shall not assume
authority to issue a burning permit for a fire on any forest or
cut over land, except as otherwise provided by law. A fire
district shall have the authority to revoke a permit issued by
the district for the protection of life or property or to prevent
or abate the nuisances caused by such burning. [1987 c 21 §
1; 1984 c 229 § 1; 1947 c 254 § 20; Rem. Supp. 1947 § 5654151i. Formerly RCW 52.28.010.]
52.12.102
52.12.102 Burning permits—Resolution to be published and posted. The commissioners of a district may
adopt a resolution authorizing the district to issue fire permits
and establishing the terms and conditions under which the
permit shall be issued. Notice of the resolution shall be published once a week for three consecutive weeks in a newspaper published in the county and of general circulation in the
district and post it in three public places in the district. The
affidavit of publication by the publisher and of the clerk of
the district of the posting shall be filed in the records of the
district. Ten days after the posting and the last publication,
the resolution shall take effect. [1984 c 229 § 2; 1947 c 254
§ 21; Rem. Supp. 1947 § 5654-151j. Formerly RCW
52.28.020.]
52.12.103
52.12.103 Burning permits—Issuance—Contents.
Burning permits may be issued upon request, by the persons
authorized by the commissioners when the issuing officer
deems it appropriate. The permit shall designate the premises
and the exact location where the fire may be started and permitted, the nature of the material to be burned, the time limit
of the permit, and may contain any special requirements and
conditions pertaining to the fire and the control of the fire as
the issuing officer deems appropriate. [1984 c 229 § 3; 1947
c 254 § 22; Rem. Supp. 1947 § 5654-151k. Formerly RCW
52.28.030.]
[Title 52 RCW—page 13]
52.12.104
Title 52 RCW: Fire Protection Districts
52.12.104
52.12.104 Burning permits—Duties of permittee.
The permittee shall comply with the terms and conditions of
the permit, and shall maintain a responsible person in charge
of the fire at all times who shall maintain the fire under control, not permit it to spread to other property or structures, and
extinguish the fire when the authorized burning is completed
or when directed by district personnel. The possession of a
permit shall not relieve the permittee from liability for damages resulting from the fire for which the permittee may otherwise be liable. [1984 c 229 § 4; 1947 c 254 § 23; Rem.
Supp. 1947 § 5654-151l. Formerly RCW 52.28.040.]
Crimes relating to fires: Chapter 9A.48 RCW.
Liability for fire damage: RCW 4.24.040, 4.24.050, 4.24.060, 76.04.495,
76.04.750.
52.12.105
52.12.105 Burning permits—Penalty. The violation
of or failure to comply with any provision of this chapter pertaining to fire permits, or of any term or condition of the permit, is a misdemeanor. [1947 c 254 § 24; Rem. Supp. 1947 §
5654-151m. Formerly RCW 52.28.050.]
52.12.106
52.12.106 Burning permits—Penalty. The violation
of or failure to comply with any provision of this chapter pertaining to fire permits, or of any term or condition of the permit, is a misdemeanor. [1984 c 229 § 5.]
52.12.108
52.12.108 Burning permits—Liability for fire suppression costs. If a person starts a fire without a permit or if
a permit holder fails to comply with any provision of this
chapter pertaining to fire permits, or of any term or condition
of the permit, and as a result of that failure the district is
required to suppress a fire, the person or permit holder is liable to the district to reimburse it for the costs of the fire suppression services. [1984 c 229 § 6.]
52.12.111
52.12.111 Use of equipment and personnel beyond
district boundaries—Governmental function. A fire protection district may permit, under conditions prescribed by
the fire commissioners of the district, the use of its equipment
and personnel beyond the boundaries of the district. Any use
made of the equipment or personnel under this section shall
be deemed an exercise of a governmental function of the district. [1984 c 230 § 77; 1980 c 43 § 1; 1969 c 88 § 2. Formerly RCW 52.36.025.]
52.12.121
52.12.121 Use of equipment and personnel outside
district—Duty of fire fighter deemed duty for district—
Benefits not impaired. If a fire fighter engages in any duty
outside the boundaries of the district the duty shall be considered as part of the duty as fire fighter for the district, and a fire
fighter who is injured while engaged in duties outside the
boundaries of the district shall be entitled to the same benefits
that the fire fighter or the fire fighter's dependents would be
entitled to receive if the injury occurred within the district.
[1984 c 230 § 78; 1969 c 88 § 3. Formerly RCW 52.36.027.]
52.12.125
52.12.125 Reimbursement for fire suppression costs
on state lands—Limitations. Fire protection districts in
proximity to land protected by a state agency are encouraged
to enter into mutually beneficial contracts covering reciprocal
[Title 52 RCW—page 14]
response arrangements. In the absence of such a contractual
agreement, a fire protection district that takes immediate
action on such land outside of its jurisdictional boundaries, if
such immediate response could prevent the spread of the fire
onto lands protected by the district, shall be reimbursed by
the state agency for its reasonable fire suppression costs that
are incurred until the responsible agency takes charge, but in
no event shall the costs exceed a twenty-four hour period. A
fire protection district suppressing a fire on such lands shall
as soon as practicable notify the responsible agency. The
state agency shall not be responsible to pay such reimbursement if it is not so notified.
Reasonable efforts shall be taken to protect evidence of
the fire's origin. The state agency shall not be responsible to
pay such reimbursement if reasonable efforts are not taken to
protect such evidence.
Requests for reimbursement shall be submitted within
thirty days of the complete suppression of the fire. Reasonable costs submitted for reimbursement include all salaries
and expenses of personnel, equipment, and supplies and shall
take into consideration the amount of compensation, if any,
paid by the fire protection district to its fire fighters. [1986 c
311 § 2.]
52.12.131
52.12.131 Emergency medical services—Establishment and collection of charges. Any fire protection district
which provides emergency medical services, may by resolution establish and collect reasonable charges for these services in order to reimburse the district for its costs of providing emergency medical services. [1984 c 230 § 81; 1975 c 64
§ 1. Formerly RCW 52.36.090.]
52.12.135
52.12.135 Interlocal agreements for ambulance services. (1) A rural fire protection district organized under this
title may enter into a contract pursuant to chapter 39.34 RCW
with a contiguous city for the furnishing by the city to the fire
protection district or districts of emergency medical services
in the form of ambulance services, provided that the contract
may not provide for the establishment of any ambulance service that would compete with any existing, private ambulance service. The fire protection district or districts may
impose a monthly utility service charge on each developed
residential property located in the portion of the fire protection district or districts served pursuant to the contract in an
amount equal to the amount imposed by the city on similar
city developed residential property. Developed residential
property includes single-family residences, apartments, manufactured homes, mobile homes, and trailers available for
occupancy for a continuous period greater than thirty days. A
fire protection district or districts may contract with the contiguous city or with any other governmental entity pursuant
to chapter 39.34 RCW for the billing and collection services
related to the monthly utility service charge for ambulance
service. A city providing ambulance services to a fire protection district or districts under a contract entered into pursuant
to this subsection may charge individuals actually using the
ambulance services reasonable rates and charges for the
ambulance services.
(2) For purposes of this section, "rural" means a population density within the fire protection district or districts as a
(2004 Ed.)
Commissioners
whole of ten or fewer persons per square mile. [2003 c 209 §
1.]
52.12.140
52.12.140 Hazardous materials response teams. Fire
protection districts may cooperate and participate with counties, cities, or towns in providing hazardous materials
response teams under the county, city, or town emergency
management plan provided for in RCW 38.52.070. The participation and cooperation shall be pursuant to an agreement
or contract entered into under chapter 39.34 RCW. [1986 c
278 § 49.]
Severability—1986 c 278: See note following RCW 36.01.010.
52.12.150
52.12.150 Setting fires for fire fighter instruction—
When burning permit not required—Notice, inspection
required. Without obtaining a permit issued under RCW
70.94.650, fire protection district fire fighters may set fire to
structures located outside of urban growth areas in counties
that plan under the requirements of RCW 36.70A.040, and
outside of any city with a population of ten thousand or more
in all other counties, for instruction in methods of fire fighting, if all of the following conditions are met:
(1) In consideration of prevailing air patterns, the fire is
unlikely to cause air pollution in areas of sensitivity downwind of the proposed fire location;
(2) The fire is not located in an area that is declared to be
in an air pollution episode or any stage of an impaired air
quality as defined in RCW 70.94.715 and 70.94.473;
(3) Nuisance laws are applicable to the fire, including
nuisances related to the unreasonable interference with the
enjoyment of life and property and the depositing of particulate matter or ash on other property;
(4) Notice of the fire is provided to the owners of property adjoining the property on which the fire will occur, to
other persons who potentially will be impacted by the fire,
and to additional persons in a broader manner as specifically
requested by the local air pollution control agency or the
department of ecology;
(5) Each structure that is proposed to be set on fire must
be identified specifically as a structure to be set on fire. Each
other structure on the same parcel of property that is not proposed to be set on fire must be identified specifically as a
structure not to be set on fire; and
(6) Before setting a structure on fire, a good-faith inspection is conducted by the fire agency or fire protection district
conducting the training fire to determine if materials containing asbestos are present, the inspection is documented in
writing and forwarded to the appropriate local air authority or
the department of ecology if there is no local air authority,
and asbestos that is found is removed as required by state and
federal laws. [2000 c 199 § 1; 1994 c 28 § 1.]
52.14.017
52.14.020
52.14.030
52.14.050
52.14.060
52.14.070
52.14.080
52.14.090
52.14.100
52.14.110
52.14.120
52.14.130
52.14.013
Decrease from five to three commissioners—Election—Disposition of commissioner districts.
Number in district having full-time, fully-paid personnel—
Terms of first appointees.
Polling places.
Vacancies.
Commissioner's terms.
Oath of office.
Chairman—Secretary—Duties and oath.
Office—Meetings.
Meetings—Powers and duties of board.
Purchases and public works—Competitive bids required—
Exceptions.
Purchases and public works—Competitive bidding procedures.
Low bidder claiming error—Prohibition on later bid for same
project.
52.14.010
52.14.010 Number—Qualifications—Insurance—
Compensation and expenses—Service as volunteer fire
fighter. The affairs of the district shall be managed by a
board of fire commissioners composed of three registered
voters residing in the district except as provided in RCW
52.14.015 and 52.14.020. Each member shall each receive
seventy dollars per day or portion thereof, not to exceed six
thousand seven hundred twenty dollars per year, for attendance at board meetings and for performance of other services in behalf of the district.
In addition, they shall receive necessary expenses
incurred in attending meetings of the board or when otherwise engaged in district business, and shall be entitled to
receive the same insurance available to all fire fighters of the
district: PROVIDED, That the premiums for such insurance,
except liability insurance, shall be paid by the individual
commissioners who elect to receive it.
Any commissioner may waive all or any portion of his or
her compensation payable under this section as to any month
or months during his or her term of office, by a written waiver
filed with the secretary as provided in this section. The
waiver, to be effective, must be filed any time after the commissioner's election and prior to the date on which the compensation would otherwise be paid. The waiver shall specify
the month or period of months for which it is made.
The board shall fix the compensation to be paid the secretary and all other agents and employees of the district. The
board may, by resolution adopted by unanimous vote, authorize any of its members to serve as volunteer fire fighters
without compensation. A commissioner actually serving as a
volunteer fire fighter may enjoy the rights and benefits of a
volunteer fire fighter. [1998 c 121 § 2; 1994 c 223 § 48; 1985
c 330 § 2; 1980 c 27 § 1; 1979 ex.s. c 126 § 31; 1973 c 86 §
1; 1971 ex.s. c 242 § 2; 1969 ex.s. c 67 § 1; 1967 c 51 § 1;
1965 c 112 § 1; 1959 c 237 § 4; 1957 c 238 § 1; 1945 c 162 §
3; 1939 c 34 § 22; Rem. Supp. 1945 § 5654-122. Formerly
RCW 52.12.010.]
Purpose—1979 ex.s. c 126: See RCW 29A.20.040(1).
Terms of commissioners: RCW 52.14.060.
Chapter 52.14
Chapter 52.14 RCW
COMMISSIONERS
Sections
52.14.010
52.14.013
52.14.015
(2004 Ed.)
Number—Qualifications—Insurance—Compensation and
expenses—Service as volunteer fire fighter.
Commissioner districts—Creation—Boundaries.
Increase from three to five commissioners—Election.
52.14.013
52.14.013 Commissioner districts—Creation—
Boundaries. The board of fire commissioners of a fire protection district may adopt a resolution by unanimous vote
causing a ballot proposition to be submitted to voters of the
district authorizing the creation of commissioner districts.
The board of fire commissioners shall create commissioner
districts if the ballot proposition authorizing the creation of
[Title 52 RCW—page 15]
52.14.015
Title 52 RCW: Fire Protection Districts
commissioner districts is approved by a simple majority vote
of the voters of the fire protection district voting on the proposition. Three commissioner districts shall be created for a
fire protection district with three commissioners, and five
commissioner districts shall be created for a fire protection
district with five commissioners. No two commissioners may
reside in the same commissioner district.
No change in the boundaries of any commissioner district shall be made within one hundred twenty days next
before the date of a general district election, nor within
twenty months after the commissioner districts have been
established or altered. However, if a boundary change results
in one commissioner district being represented by two or
more commissioners, those commissioners having the shortest unexpired terms shall be assigned by the commission to
commissioner districts where there is a vacancy, and the
commissioners so assigned shall be deemed to be residents of
the commissioner districts to which they are assigned for purposes of determining whether those positions are vacant.
The population of each commissioner district shall
include approximately equal population. Commissioner districts shall be redrawn as provided in *chapter 29.70 RCW.
Commissioner districts shall be used as follows: (1) Only a
registered voter who resides in a commissioner district may
be a candidate for, or serve as, a commissioner of the commissioner district; and (2) only voters of a commissioner district may vote at a primary to nominate candidates for a commissioner of the commissioner district. Voters of the entire
fire protection district may vote at a general election to elect
a person as a commissioner of the commissioner district.
When a board of fire commissioners that has commissioner districts has been increased to five members under
RCW 52.14.015, the board of fire commissioners shall divide
the fire protection district into five commissioner districts
before it appoints the two additional fire commissioners. The
two additional fire commissioners who are appointed shall
reside in separate commissioner districts in which no other
fire commissioner resides. [1994 c 223 § 49; 1992 c 74 § 2.]
Shall the board of commissioners of . . . . . county fire
protection district no. . . . . . be increased from three members
to five members?
Yes . . . . .
No . . . . . .
If the fire protection district is located in more than a single county, this proposition shall indicate the name of the district.
If the proposition receives a majority approval at the
election, the board of commissioners of the fire protection
district shall be increased to five members. The two additional members shall be appointed in the same manner as provided in RCW 52.14.020. [1994 c 223 § 50; 1990 c 259 § 14;
1989 c 63 § 20; 1984 c 230 § 85.]
52.14.017
52.14.017 Decrease from five to three commissioners—Election—Disposition of commissioner districts.
Except as provided in RCW 52.14.020, in the event a fivemember board of commissioners of any fire protection district determines by resolution that it would be in the best
interest of the fire district to decrease the number of commissioners from five to three, or in the event the board is presented with a petition signed by ten percent of the registered
voters resident within the district who voted in the last general municipal election calling for such a decrease in the
number of commissioners of the district, the board shall submit a resolution to the county legislative authority or authorities of the county or counties in which the district is located
requesting that an election be held. Upon receipt of the resolution, the legislative authority or authorities of the county or
counties shall call a special election to be held within the fire
protection district at which election the following proposition
shall be submitted to the voters substantially as follows:
Shall the board of commissioners of . . . . . . county fire
protection district no. . . . be decreased from five members to
three members?
Yes . . .
No . . .
*Reviser's note: Chapter 29.70 RCW was recodified as chapter 29A.76
RCW pursuant to 2003 c 111 § 2401, effective July 1, 2004.
Creation of commissioner districts upon merger: RCW 52.06.085.
52.14.015
52.14.015 Increase from three to five commissioners—Election. In the event a three member board of commissioners of any fire protection district determines by resolution that it would be in the best interest of the district to
increase the number of commissioners from three to five, or
in the event the board is presented with a petition signed by
ten percent of the registered voters resident within the district
who voted in the last general municipal election calling for
such an increase in the number of commissioners of the district, the board shall submit a resolution to the county legislative authority or authorities of the county or counties in which
the district is located requesting that an election be held.
Upon receipt of the resolution, the legislative authority or
authorities of the county or counties shall call a special election to be held within the fire protection district at which election the following proposition shall be submitted to the voters
substantially as follows:
[Title 52 RCW—page 16]
If the fire protection district has commissioner districts,
the commissioners of the district must pass a resolution,
before the submission of the proposition to the voters, to
either redistrict from five commissioner districts to three
commissioner districts or eliminate the commissioner districts. The resolution takes effect upon approval of the proposition by the voters.
If the fire protection district is located in more than a single county, this proposition shall indicate the name of the district.
If the proposition receives a majority approval at the
election, the board of commissioners of the fire protection
district shall be decreased to three members. The two members shall be decreased in accordance with RCW 52.06.085.
[1997 c 43 § 1.]
52.14.020
52.14.020 Number in district having full-time, fullypaid personnel—Terms of first appointees. In a fire protection district maintaining a fire department consisting
wholly of personnel employed on a full-time, fully-paid
(2004 Ed.)
Commissioners
basis, there shall be five fire commissioners. The two positions created on boards of fire commissioners by this section
shall be filled initially as for a vacancy, except that the
appointees shall draw lots, one appointee to serve until the
next general fire district election after the appointment, at
which two commissioners shall be elected for six-year terms,
and the other appointee to serve until the second general fire
district election after the appointment, at which two commissioners shall be elected for six-year terms. [1984 c 230 § 29;
1971 ex.s. c 242 § 3. Formerly RCW 52.12.015.]
52.14.030
52.14.030 Polling places. The polling places for a fire
protection district election may be located inside or outside
the boundaries of the district, as determined by the auditor of
the county in which the fire protection district is located, and
the elections of the fire protection district shall not be held to
be irregular or void on that account. [1994 c 223 § 51; 1984
c 230 § 31; 1939 c 34 § 24; RRS § 5654-124. Formerly RCW
52.12.030.]
52.14.090
other person who is elected shall be elected to a two-year
term of office if the election is held in an odd-numbered year
or a one-year term of office if the election is held in an evennumbered year. The initial commissioners shall take office
immediately when elected and qualified and their terms of
office shall be calculated from the first day of January in the
year following their election.
The term of office of each subsequent commissioner
shall be six years. Each commissioner shall serve until a successor is elected and qualified and assumes office in accordance with **RCW 29.04.170. [1994 c 223 § 53; 1989 c 63
§ 22; 1984 c 230 § 33; 1979 ex.s. c 126 § 33; 1939 c 34 § 27;
RRS § 5654-127. Formerly RCW 52.12.060.]
Reviser's note: *(1) Chapter 29.21 RCW was recodified as chapter
29A.52 RCW pursuant to 2003 c 111 § 2401, effective July 1, 2004.
**(2) RCW 29.15.170, 29.15.180, and 29.04.170 were recodified as
RCW 29A.24.170, 29A.24.180, and 29A.20.040, respectively, pursuant to
2003 c 111 § 2401, effective July 1, 2004. RCW 29A.24.170 and
29A.24.180 were subsequently repealed by 2004 c 271 § 193.
Purpose—1979 ex.s. c 126: See RCW 29A.20.040(1).
52.14.050
52.14.050 Vacancies. Vacancies on a board of fire
commissioners shall occur as provided in chapter 42.12
RCW. In addition, if a fire commissioner is absent from the
district for three consecutive regularly scheduled meetings
unless by permission of the board, the office shall be declared
vacant by the board of commissioners. However, such an
action shall not be taken unless the commissioner is notified
by mail after two consecutive unexcused absences that the
position will be declared vacant if the commissioner is absent
without being excused from the next regularly scheduled
meeting. Vacancies on a board of fire commissioners shall be
filled as provided in chapter 42.12 RCW. [1994 c 223 § 52;
1989 c 63 § 21; 1984 c 238 § 2; 1977 c 64 § 1; 1974 ex.s. c 17
§ 1; 1971 ex.s. c 153 § 1; 1939 c 34 § 26; RRS § 5654-126.
Formerly RCW 52.12.050.]
52.14.060
52.14.060 Commissioner's terms. The initial three
members of the board of fire commissioners shall be elected
at the same election as when the ballot proposition is submitted to the voters authorizing the creation of the fire protection
district. If the district is not authorized to be created, the election of the initial fire commissioners shall be null and void. If
the district is authorized to be created, the initial fire commissioners shall take office immediately when qualified. Candidates shall file for each of the three separate fire commissioner positions. Elections shall be held as provided in *chapter 29.21 RCW, with the county auditor opening up a special
filing period as provided in **RCW 29.15.170 and
29.15.180, as if there were a vacancy. The person who
receives the greatest number of votes for each position shall
be elected to that position. The terms of office of the initial
fire commissioners shall be staggered as follows: (1) The
person who is elected receiving the greatest number of votes
shall be elected to a six-year term of office if the election is
held in an odd-numbered year or a five-year term of office if
the election is held in an even-numbered year; (2) the person
who is elected receiving the next greatest number of votes
shall be elected to a four-year term of office if the election is
held in an odd-numbered year or a three-year term of office if
the election is held in an even-numbered year; and (3) the
(2004 Ed.)
52.14.070
52.14.070 Oath of office. Before beginning the duties
of office, each fire commissioner shall take and subscribe the
official oath for the faithful discharge of the duties of office
as required by *RCW 29.01.135, which oath shall be filed in
the office of the auditor of the county in which all, or the largest portion of, the district is located. [1989 c 63 § 23; 1986 c
167 § 22; 1984 c 230 § 34; 1939 c 34 § 29; RRS § 5654-129.
Formerly RCW 52.12.070.]
*Reviser's note: RCW 29.01.135 was recodified as RCW 29A.04.133
pursuant to 2003 c 111 § 2401, effective July 1, 2004.
Severability—1986 c 167: See note following RCW 29A.04.049.
52.14.080
52.14.080 Chairman—Secretary—Duties and oath.
The fire commissioners shall elect a chairman from their
number and shall appoint a secretary of the district, who may
or may not be a member of the board, for such term as they
shall by resolution determine. The secretary, if a member of
the board, shall not receive additional compensation for serving as secretary.
The secretary of the district shall keep a record of the
proceedings of the board, shall perform other duties as prescribed by the board or by law, and shall take and subscribe
an official oath similar to that of the fire commissioners
which oath shall be filed in the same office as that of the commissioners. [1984 c 230 § 35; 1965 c 112 § 2; 1939 c 34 § 30;
RRS § 5654-130. Formerly RCW 52.12.080.]
52.14.090
52.14.090 Office—Meetings. (1) The office of the fire
commissioners and principal place of business of the district
shall be at some place within the county in which the district
is situated, to be designated by the board of fire commissioners.
(2) The board shall hold regular monthly meetings at a
place and date as it determines by resolution, and may
adjourn its meetings as required for the proper transaction of
business. Special meetings of the board shall be called at any
time under the provisions of RCW 42.30.080. [1984 c 230 §
36; 1947 c 254 § 8; 1939 c 34 § 31; Rem. Supp. 1947 § 5654131. Formerly RCW 52.12.090.]
[Title 52 RCW—page 17]
52.14.100
Title 52 RCW: Fire Protection Districts
52.14.100 Meetings—Powers and duties of board.
All meetings of the board of fire commissioners shall be conducted in accordance with chapter 42.30 RCW and a majority
constitutes a quorum for the transaction of business. All
records of the board shall be open to inspection in accordance
with the provisions of RCW 42.17.250 through 42.17.340.
The board has the power and duty to adopt a seal of the district, to manage and conduct the business affairs of the district, to make and execute all necessary contracts, to employ
any necessary services, and to adopt reasonable rules to govern the district and to perform its functions, and generally to
perform all such acts as may be necessary to carry out the
objects of the creation of the district. [1984 c 230 § 37; 1939
c 34 § 32; RRS § 5654-132. Formerly RCW 52.12.100.]
52.14.100
Open public meetings: Chapters 42.30, 42.32 RCW.
52.14.110 Purchases and public works—Competitive
bids required—Exceptions. Insofar as practicable, purchases and any public works by the district shall be based on
competitive bids. A formal sealed bid procedure shall be used
as standard procedure for purchases and contracts for purchases executed by the board of commissioners. Formal
sealed bidding shall not be required for:
(1) The purchase of any materials, supplies, or equipment if the cost will not exceed the sum of ten thousand dollars. However, whenever the estimated cost does not exceed
fifty thousand dollars, the commissioners may by resolution
use the process provided in RCW 39.04.190 to award contracts;
(2) Contracting for work to be done involving the construction or improvement of a fire station or other buildings
where the estimated cost will not exceed the sum of two thousand five hundred dollars, which includes the costs of labor,
material, and equipment;
(3) Contracts using the small works roster process under
RCW 39.04.155; and
(4) Any contract for purchases or public work pursuant
to RCW 39.04.280 if an exemption contained within that section applies to the purchase or public work. [2001 c 79 § 1;
2000 c 138 § 209; 1998 c 278 § 5; 1993 c 198 § 11; 1984 c
238 § 3.]
52.14.110
Purpose—Part headings not law—2000 c 138: See notes following
RCW 39.04.155.
52.14.120 Purchases and public works—Competitive
bidding procedures. (1) Notice of the call for bids shall be
given by publishing the notice in a newspaper of general circulation within the district at least thirteen days before the
last date upon which bids will be received. If no bid is
received on the first call, the commissioners may readvertise
and make a second call, or may enter into a contract without
a further call.
(2) A public work involving three or more specialty contractors requires that the district retain the services of a general contractor as defined in RCW 18.27.010. [1993 c 198 §
12; 1984 c 238 § 4.]
52.14.120
52.14.130 Low bidder claiming error—Prohibition
on later bid for same project. A low bidder who claims
error and fails to enter into a contract with a fire protection
district for a public works project is prohibited from bidding
52.14.130
[Title 52 RCW—page 18]
on the same project if a second or subsequent call for bids is
made for the project. [1996 c 18 § 10.]
Chapter 52.16
Chapter 52.16 RCW
FINANCES
Sections
52.16.010
52.16.020
52.16.030
52.16.040
52.16.050
52.16.061
52.16.070
52.16.080
52.16.130
52.16.140
52.16.150
52.16.160
52.16.170
County treasurer as financial agent.
Funds.
Budget for each fund.
Tax levies—Assessment roll—Collection.
Disbursal of funds—Issuance of warrants—Monthly reports.
General obligation bonds—Issuance—Limitations.
Obligations shall not exceed taxes, revenues, and cash balances—Exceptions.
Bonds may be issued for capital purposes—Excess property
tax levies.
General levy authorized—Limit—Excess levy at special election.
General levy may exceed limit—When.
Donations and bequests to district.
Tax levy authorized.
Taxation and assessment of lands lying both within a fire protection district and forest protection assessment area.
52.16.010 County treasurer as financial agent. It is
the duty of the county treasurer of the county in which all, or
the largest portion of, any fire protection district created
under this title is located to receive and disburse district revenues, to collect taxes and assessments authorized and levied
under this title, and to credit district revenues to the proper
fund. However, where a fire protection district is located in
more than one county, the county treasurer of each other
county in which the district is located shall collect the fire
protection district's taxes and assessments that are imposed
on property located within the county and transfer these
funds to the county treasurer of the county in which the largest portion of the district is located. [1989 c 63 § 24; 1984 c
230 § 38; 1939 c 34 § 33; RRS § 5654-133.]
52.16.010
52.16.020 Funds. In each county in which a fire protection district is situated, there shall be in the county treasurer's
office of each district the following funds: (1) Expense fund;
(2) reserve fund; (3) local improvement district No. . . . .
fund; (4) general obligation bond fund; and (5) such other
funds as the board of commissioners of the district may establish. Taxes levied for administrative, operative, and maintenance purposes and for the purchase of fire fighting and
emergency medical equipment and apparatus and for the purchase of real property, when collected, and proceeds from the
sale of general obligation bonds shall be placed by the county
treasurer in the proper fund. Taxes levied for the payment of
general obligation bonds and interest thereon, when collected, shall be placed by the county treasurer in the general
obligation bond fund. The board of fire commissioners may
include in its annual budget items of possible outlay to be
provided for and held in reserve for any district purpose, and
taxes shall be levied therefor. Such taxes, when collected,
shall be placed by the county treasurer in the reserve fund.
The reserve fund, or any part of it, may be transferred by the
county treasurer to other funds of the district at any time by
order of the board of fire commissioners. Special assessments
levied against the lands in any improvement district within
the district, when collected, shall be placed by the county
treasurer in the local improvement district fund for the local
52.16.020
(2004 Ed.)
Finances
improvement district. [1984 c 230 § 39; 1983 c 167 § 120;
1959 c 221 § 1; 1955 c 134 § 1; 1953 c 176 § 2; 1951 2nd
ex.s. c 24 § 1; 1949 c 22 § 1; 1947 c 254 § 9; 1939 c 34 § 34;
Rem. Supp. 1949 § 5654-134.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
52.16.030
52.16.030 Budget for each fund. Annually after the
county board or boards of equalization of the county or counties in which the district is located have equalized the assessments for general tax purposes in that year, the secretary of
the district shall prepare and certify a budget of the requirements of each district fund, and deliver it to the county legislative authority or authorities of the county or counties in
which the district is located in ample time for the tax levies to
be made for district purposes. [1989 c 63 § 25; 1984 c 230 §
40; 1939 c 34 § 35; RRS § 5654-135.]
52.16.040
52.16.040 Tax levies—Assessment roll—Collection.
At the time of making general tax levies in each year the
county legislative authority or authorities of the county or
counties in which a fire protection district is located shall
make the required levies for district purposes against the real
and personal property in the district in accordance with the
equalized valuations of the property for general tax purposes
and as a part of the general taxes. The tax levies shall be a part
of the general tax roll and shall be collected as a part of the
general taxes against the property in the district. [1989 c 63
§ 26; 1984 c 230 § 41; 1939 c 34 § 36; RRS § 5654-136.]
Levy of taxes: Chapter 84.52 RCW.
52.16.050
52.16.050 Disbursal of funds—Issuance of warrants—Monthly reports. (1) Except as provided in subsections (2) and (3) of this section, the county treasurer shall pay
out money received for the account of the district on warrants
issued by the county auditor against the proper funds of the
district. The warrants shall be issued on vouchers approved
and signed by a majority of the district board and by the district secretary.
(2) The board of fire commissioners of a district that had
an annual operating budget of five million or more dollars in
each of the preceding three years may by resolution adopt a
policy to issue its own warrants for payment of claims or
other obligations of the fire district. The board of fire commissioners, after auditing all payrolls and bills, may authorize
the issuing of one general certificate to the county treasurer,
to be signed by the chair of the board of fire commissioners,
authorizing the county treasurer to pay all the warrants specified by date, number, name, and amount, and the accounting
funds on which the warrants shall be drawn; thereupon the
district secretary may issue the warrants specified in the general certificate.
(3) The board of fire commissioners of a district that had
an annual operating budget of greater than two hundred fifty
thousand dollars and under five million dollars in each of the
preceding three years may upon agreement between the
county treasurer and the fire district commission, with
approval of the fire district commission by resolution, adopt
a policy to issue its own warrants for payment of claims or
other obligations of the fire district. The board of fire com(2004 Ed.)
52.16.070
missioners, after auditing all payrolls and bills, may authorize
the issuing of one general certificate to the county treasurer,
to be signed by the chair of the board of fire commissioners,
authorizing the county treasurer to pay all the warrants specified by date, number, name, and amount, and the accounting
funds on which the warrants shall be drawn. The district secretary may then issue the warrants specified in the general
certificate.
(4) The county treasurer may also pay general obligation
bonds and the accrued interest thereon in accordance with
their terms from the general obligation bond fund when interest or principal payments become due. The county treasurer
shall report in writing monthly to the secretary of the district
the amount of money held by the county in each fund and the
amounts of receipts and disbursements for each fund during
the preceding month. [2002 c 165 § 1; 1998 c 5 § 1; 1984 c
230 § 42; 1983 c 167 § 121; 1939 c 34 § 37; RRS § 5654137.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
52.16.061
52.16.061 General obligation bonds—Issuance—
Limitations. The board of fire commissioners of the district
shall have authority to contract indebtedness and to refund
same for any general district purpose, including expenses of
maintenance, operation and administration, and the acquisition of firefighting facilities, and evidence the same by the
issuance and sale of general obligation bonds of the district
payable at such time or times not longer than twenty years
from the issuing date of the bonds. Such bonds shall be issued
and sold in accordance with chapter 39.46 RCW. Such bonds
shall not exceed an amount, together with any outstanding
nonvoter approved general obligation indebtedness, equal to
three-eighths of one percent of the value of the taxable property within the fire protection district, as the term "value of
the taxable property" is defined in RCW 39.36.015. [1993 c
231 § 1; 1984 c 186 § 39; 1983 c 167 § 122; 1970 ex.s. c 56
§ 66; 1969 ex.s. c 232 § 89; 1955 c 134 § 2; 1953 c 176 § 3.]
Purpose—1984 c 186: See note following RCW 39.46.110.
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Purpose—1970 ex.s. c 56: See note following RCW 39.52.020.
Validation—Saving—Severability—1969 ex.s. c 232: See notes following RCW 39.52.020.
52.16.070
52.16.070 Obligations shall not exceed taxes, revenues, and cash balances—Exceptions. Except as authorized by the issuance and sale of general obligation bonds, the
creation of local improvements districts, and the issuance of
local improvement bonds and warrants of the fire protection
district, the board of fire commissioners may not incur
expenses or other financial obligations payable in any year in
excess of the aggregate amount of taxes levied for that year,
revenues derived from all other sources, and the cash balances on hand in the expense and reserve funds of the district
on the first day of that year. In the event that there are any
unpaid warrants drawn on any district funds for expenses and
obligations incurred and outstanding at the end of any calendar year, the warrants may be paid from taxes collected in the
subsequent year or years and from other income. [1984 c 230
§ 43; 1983 c 167 § 123; 1975 1st ex.s. c 130 § 1; 1972 ex.s. c
[Title 52 RCW—page 19]
52.16.080
Title 52 RCW: Fire Protection Districts
16 § 1; 1959 c 221 § 2; 1955 c 134 § 3; 1951 2nd ex.s. c 24 §
10; 1947 c 254 § 11; 1943 c 106 § 1; 1941 c 70 § 5; 1939 c 34
§ 39; Rem. Supp. 1947 § 5654-139.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Severability—Construction—1975 1st ex.s. c 130: "If any section,
clause, or other provision of this 1975 amendatory act, or its application to
any person or circumstance, is held invalid, the remainder of such 1975
amendatory act, or the application of such section, clause, or provision to
other persons or circumstances, shall not be affected. The rule of strict construction shall have no application to this 1975 amendatory act, but the same
shall be liberally construed, in order to carry out the purposes and objects for
which this 1975 amendatory act is intended. When this 1975 amendatory act
comes in conflict with any provision, limitation, or restriction in any other
law, this 1975 amendatory act shall govern and control." [1975 1st ex.s. c
130 § 6.]
by law, and shall be paid out on warrants of the auditor of the
county in which all, or the largest portion of, the district is
located, upon authorization of the board of fire commissioners of the district. [2002 c 180 § 3; 1989 c 63 § 27; 1985 c 7
§ 121; 1984 c 230 § 44; 1983 c 167 § 126; 1973 1st ex.s. c
195 § 52; 1971 ex.s. c 105 § 1; 1963 ex.s. c 13 § 2; 1951 2nd
ex.s. c 24 § 8.]
Contingent effective date—2002 c 180: See note following RCW
84.52.052.
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
52.16.140
52.16.080
52.16.080 Bonds may be issued for capital purposes—Excess property tax levies. Fire protection districts
additionally are authorized to incur general indebtedness for
capital purposes and to issue general obligation bonds not to
exceed an amount, together with any outstanding general
obligation indebtedness, equal to three-fourths of one percent
of the value of the taxable property within such district, as the
term "value of the taxable property" is defined in RCW
39.36.015, and to provide for the retirement thereof by excess
property tax levies, when the voters of the district have
approved a proposition authorizing such indebtedness and
levies by an affirmative vote of three-fifths of those voting on
the proposition at such election, at which election the total
number of persons voting shall constitute not less than forty
percent of the voters in the fire protection district who voted
at the last preceding general state election. The maximum
term of such bonds may not exceed twenty years. Such bonds
shall be issued and sold in accordance with chapter 39.46
RCW. Such elections shall be held as provided in RCW
39.36.050. [1984 c 186 § 40; 1973 1st ex.s. c 195 § 50; 1970
ex.s. c 42 § 30; 1953 c 176 § 4; 1951 2nd ex.s. c 24 § 3.]
Purpose—1984 c 186: See note following RCW 39.46.110.
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
Severability—Effective date—1970 ex.s. c 42: See notes following
RCW 39.36.015.
52.16.130
52.16.130 General levy authorized—Limit—Excess
levy at special election. To carry out the purposes for which
fire protection districts are created, the board of fire commissioners of a district may levy each year, in addition to the levy
or levies provided in RCW 52.16.080 for the payment of the
principal and interest of any outstanding general obligation
bonds, an ad valorem tax on all taxable property located in
the district not to exceed fifty cents per thousand dollars of
assessed value: PROVIDED, That in no case may the total
general levy for all purposes, except the levy for the retirement of general obligation bonds, exceed one dollar per thousand dollars of assessed value. Levies in excess of one dollar
per thousand dollars of assessed value or in excess of the
aggregate dollar rate limitations or both may be made for any
district purpose when so authorized at a special election
under RCW 84.52.130. Any such tax when levied shall be
certified to the proper county officials for the collection of the
tax as for other general taxes. The taxes when collected shall
be placed in the appropriate district fund or funds as provided
[Title 52 RCW—page 20]
52.16.140 General levy may exceed limit—When.
Notwithstanding the limitation of dollar rates contained in
RCW 52.16.130, the board of fire commissioners of any district may levy, in addition to any levy for the payment of the
principal and interest of outstanding general obligation
bonds, an ad valorem tax on all property located in the district
of not to exceed fifty cents per thousand dollars of assessed
value and which will not cause the combined levies to exceed
the constitutional or statutory limitations, and the additional
levy, or any portion of the levy, may also be made when dollar rates of other taxing units are released by agreement with
the other taxing units from their authorized levies. [1984 c
230 § 45; 1983 c 167 § 127; 1973 1st ex.s. c 195 § 53; 1951
2nd ex.s. c 24 § 9.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
Levy of taxes: Chapter 84.52 RCW.
52.16.150
52.16.150 Donations and bequests to district. A fire
protection district may accept and receive in behalf of the district any money or property donated, devised, or bequeathed
to the district, and may carry out the terms of the donation,
devise, or bequest, if within the powers granted by law to fire
protection districts. In the absence of such terms, a fire protection district may expend or use the money or property for
district purposes as determined by the board. [1984 c 230 §
46; 1951 2nd ex.s. c 24 § 11.]
52.16.160
52.16.160 Tax levy authorized. Notwithstanding the
limitation of dollar rates contained in RCW 52.16.130, and in
addition to any levy for the payment of the principal and
interest of any outstanding general obligation bonds and in
addition to any levy authorized by RCW 52.16.130,
52.16.140 or any other statute, the board of fire commissioners of any fire protection district within such county, which
fire protection district has at least one full-time, paid
employee, or contracts with another municipal corporation
for the services of at least one full-time, paid employee, is
hereby authorized to levy each year an ad valorem tax on all
taxable property within such district of not to exceed fifty
cents per thousand dollars of assessed value, which levy may
be made only if it will not affect dollar rates which other taxing districts may lawfully claim nor cause the combined levies to exceed the constitutional and/or statutory limitations.
(2004 Ed.)
Benefit Charges
[2002 c 84 § 1; 1985 c 112 § 1; 1983 c 167 § 128; 1973 1st
ex.s. c 195 § 54; 1969 ex.s. c 243 § 2; 1961 c 53 § 9.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
Severability—1969 ex.s. c 243: "If any provision of this act, or its
application to any person or circumstance is held invalid, the remainder of
the act, or the application of the provision to other persons or circumstances
is not affected." [1969 ex.s. c 243 § 8.]
52.16.170
52.16.170 Taxation and assessment of lands lying
both within a fire protection district and forest protection
assessment area. In the event that lands lie within both a fire
protection district and a forest protection assessment area
they shall be taxed and assessed as follows:
(1) If the lands are wholly unimproved, they shall be subject to forest protection assessments but not to fire protection
district levies;
(2) If the lands are wholly improved, they shall be subject to fire protection district levies but not to forest protection assessments;
(3) If the lands are partly improved and partly unimproved they shall be subject both to fire protection district
levies and to forest protection assessments: PROVIDED,
That upon request, accompanied by appropriate legal
descriptions, the county assessor shall segregate any unimproved portions which each consist of twenty or more acres,
and thereafter the unimproved portion or portions shall be
subject only to forest protection assessments. [1984 c 230 §
47; 1963 ex.s. c 13 § 3.]
Forest protection assessments: RCW 76.04.610.
Chapter 52.18
Chapter 52.18 RCW
BENEFIT CHARGES
(Formerly: Service charges)
Sections
52.18.010
52.18.020
52.18.030
52.18.040
52.18.050
52.18.060
52.18.065
52.18.070
52.18.080
52.18.090
52.18.900
52.18.901
Benefit charges authorized—Exceptions—Amounts—Limitations.
Personal property, improvements to real property—Defined.
Resolution establishing benefit charges—Contents—Listing—Collection.
Reimbursement of county for administration and collection
expenses.
Voter approval of benefit charges required—Election—Ballot.
Public hearing—Required—Report—Benefit charge resolution to be filed—Notification to property owners.
Property tax limited if benefit charge imposed.
Review board.
Model resolution.
Exemptions.
Severability—1974 ex.s. c 126.
Severability—1990 c 294.
Assessments and charges against state lands: Chapter 79.44 RCW.
52.18.010
52.18.010 Benefit charges authorized—Exceptions—
Amounts—Limitations. The board of fire commissioners
of a fire protection district may by resolution, for fire protection district purposes authorized by law, fix and impose a
benefit charge on personal property and improvements to real
property which are located within the fire protection district
on the date specified and which have or will receive the benefits provided by the fire protection district, to be paid by the
owners of the properties: PROVIDED, That a benefit charge
(2004 Ed.)
52.18.010
shall not apply to personal property and improvements to real
property owned or used by any recognized religious denomination or religious organization as, or including, a sanctuary
or for purposes related to the bona fide religious ministries of
the denomination or religious organization, including schools
and educational facilities used for kindergarten, primary, or
secondary educational purposes or for institutions of higher
education and all grounds and buildings related thereto, but
not including personal property and improvements to real
property owned or used by any recognized religious denomination or religious organization for business operations,
profit-making enterprises, or activities not including use of a
sanctuary or related to kindergarten, primary, or secondary
educational purposes or for institutions of higher education.
The aggregate amount of such benefit charges in any one year
shall not exceed an amount equal to sixty percent of the operating budget for the year in which the benefit charge is to be
collected: PROVIDED, That it shall be the duty of the
county legislative authority or authorities of the county or
counties in which the fire protection district is located to
make any necessary adjustments to assure compliance with
such limitation and to immediately notify the board of fire
commissioners of any changes thereof.
A benefit charge imposed shall be reasonably proportioned to the measurable benefits to property resulting from
the services afforded by the district. It is acceptable to apportion the benefit charge to the values of the properties as found
by the county assessor or assessors modified generally in the
proportion that fire insurance rates are reduced or entitled to
be reduced as the result of providing the services. Any other
method that reasonably apportions the benefit charges to the
actual benefits resulting from the degree of protection, which
may include but is not limited to the distance from regularly
maintained fire protection equipment, the level of fire prevention services provided to the properties, or the need of the
properties for specialized services, may be specified in the
resolution and shall be subject to contest on the ground of
unreasonable or capricious action or action in excess of the
measurable benefits to the property resulting from services
afforded by the district. The board of fire commissioners may
determine that certain properties or types or classes of properties are not receiving measurable benefits based on criteria
they establish by resolution. A benefit charge authorized by
this chapter shall not be applicable to the personal property or
improvements to real property of any individual, corporation,
partnership, firm, organization, or association maintaining a
fire department and whose fire protection and training system
has been accepted by a fire insurance underwriter maintaining a fire protection engineering and inspection service
authorized by the state insurance commissioner to do business in this state, but such property may be protected by the
fire protection district under a contractual agreement.
For administrative purposes, the benefit charge imposed
on any individual property may be compiled into a single
charge, provided that the district, upon request of the property owner, provide an itemized list of charges for each measurable benefit included in the charge. [1998 c 16 § 1; 1990
c 294 § 1; 1989 c 63 § 28; 1987 c 325 § 1; 1985 c 7 § 122;
1974 ex.s. c 126 § 1.]
[Title 52 RCW—page 21]
52.18.020
Title 52 RCW: Fire Protection Districts
52.18.020
52.18.020 Personal property, improvements to real
property—Defined. The term "personal property" for the
purposes of this chapter shall include every form of tangible
personal property, including but not limited to, all goods,
chattels, stock in trade, estates, or crops: PROVIDED, That
all personal property not assessed and subjected to ad valorem taxation under Title 84 RCW, all property under contract
or for which the district is receiving payment for as authorized by RCW 52.30.020 and all property subject to the provisions of chapter 54.28 RCW, or all property that is subject
to a contract for services with a fire protection district, shall
be exempt from the benefit charge imposed under this chapter: PROVIDED FURTHER, That the term "personal property" shall not include any personal property used for farming, field crops, farm equipment or livestock: AND PROVIDED FURTHER, That the term "improvements to real
property" shall not include permanent growing crops, field
improvements installed for the purpose of aiding the growth
of permanent crops, or other field improvements normally
not subject to damage by fire. [1990 c 294 § 2; 1987 c 325 §
2; 1985 c 7 § 123; 1974 ex.s. c 126 § 2.]
52.18.030
52.18.030 Resolution establishing benefit charges—
Contents—Listing—Collection. The resolution establishing benefit charges as specified in RCW 52.18.010 shall
specify, by legal geographical areas or other specific designations, the charge to apply to each property by location, type,
or other designation, or other information that is necessary to
the proper computation of the benefit charge to be charged to
each property owner subject to the resolution. The county
assessor of each county in which the district is located shall
determine and identify the personal properties and improvements to real property which are subject to a benefit charge in
each fire protection district and shall furnish and deliver to
the county treasurer of that county a listing of the properties
with information describing the location, legal description,
and address of the person to whom the statement of benefit
charges is to be mailed, the name of the owner, and the value
of the property and improvements, together with the benefit
charge to apply to each. These benefit charges shall be certified to the county treasurer for collection in the same manner
that is used for the collection of fire protection charges for
forest lands protected by the department of natural resources
under RCW 76.04.610 and the same penalties and provisions
for collection shall apply. [1990 c 294 § 3; 1989 c 63 § 29;
1987 c 325 § 3; 1986 c 100 § 53; 1974 ex.s. c 126 § 3.]
52.18.040
52.18.040 Reimbursement of county for administration and collection expenses. Each fire protection district
shall contract, prior to the imposition of a benefit charge, for
the administration and collection of the benefit charge by
each county treasurer, who shall deduct a percent, as provided by contract to reimburse the county for expenses
incurred by the county assessor and county treasurer in the
administration of the resolution and this chapter. The county
treasurer shall make distributions each year, as the charges
are collected, in the amount of the benefit charges imposed
on behalf of each district, less the deduction provided for in
the contract. [1990 c 294 § 4; 1989 c 63 § 30; 1987 c 325 §
4; 1974 ex.s. c 126 § 4.]
[Title 52 RCW—page 22]
52.18.050
52.18.050 Voter approval of benefit charges
required—Election—Ballot. (1) Any benefit charge authorized by this chapter shall not be effective unless a proposition to impose the benefit charge is approved by a sixty percent majority of the voters of the district voting at a general
election or at a special election called by the district for that
purpose, held within the fire protection district. An election
held pursuant to this section shall be held not more than
twelve months prior to the date on which the first such charge
is to be assessed: PROVIDED, That a benefit charge
approved at an election shall not remain in effect for a period
of more than six years nor more than the number of years
authorized by the voters if fewer than six years unless subsequently reapproved by the voters.
(2) The ballot shall be submitted so as to enable the voters favoring the authorization of a fire protection district benefit charge to vote "Yes" and those opposed thereto to vote
"No," and the ballot shall be:
"Shall . . . . . . county fire protection district No.
. . . . be authorized to impose benefit charges each
year for . . . . (insert number of years not to exceed
six) years, not to exceed an amount equal to sixty
percent of its operating budget, and be prohibited
from imposing an additional property tax under
RCW 52.16.160?
YES
NO
'
'"
(3) Districts renewing the benefit charge may elect to use
the following alternative ballot:
"Shall . . . . . . county fire protection district No.
. . . . be authorized to continue voter-authorized benefit charges each year for . . . . (insert number of
years not to exceed six) years, not to exceed an
amount equal to sixty percent of its operating budget, and be prohibited from imposing an additional
property tax under RCW 52.16.160?
YES
NO
'
'"
[1998 c 16 § 2; 1990 c 294 § 5; 1989 c 27 § 1; 1987 c 325 §
5; 1974 ex.s. c 126 § 5.]
52.18.060
52.18.060 Public hearing—Required—Report—
Benefit charge resolution to be filed—Notification to
property owners. (1) Not less than ten days nor more than
six months before the election at which the proposition to
impose the benefit charge is submitted as provided in this
chapter, the board of fire commissioners of the district shall
hold a public hearing specifically setting forth its proposal to
impose benefit charges for the support of its legally authorized activities which will maintain or improve the services
afforded in the district. A report of the public hearing shall be
filed with the county treasurer of each county in which the
property is located and be available for public inspection.
(2) Prior to November 15 of each year the board of fire
commissioners shall hold a public hearing to review and
establish the fire district benefit charges for the subsequent
year.
(2004 Ed.)
Local Improvement Districts
All resolutions imposing or changing the benefit charges
shall be filed with the county treasurer or treasurers of each
county in which the property is located, together with the
record of each public hearing, before November 30 immediately preceding the year in which the benefit charges are to be
collected on behalf of the district.
After the benefit charges have been established, the owners of the property subject to the charge shall be notified of
the amount of the charge. [1990 c 294 § 6; 1989 c 63 § 31;
1987 c 325 § 6; 1974 ex.s. c 126 § 6.]
52.18.065
52.18.065 Property tax limited if benefit charge
imposed. A fire protection district that imposes a benefit
charge under this chapter shall not impose all or part of the
property tax authorized under RCW 52.16.160. [1990 c 294
§ 7; 1987 c 325 § 9.]
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1990 c 294 § 11.]
Chapter 52.20
52.20.010
52.20.020
52.20.022
52.20.025
52.20.027
52.20.060
52.18.080
52.18.080 Model resolution. The Washington fire
commissioners association, as soon as practicable, shall draft
a model resolution to impose the fire protection district benefit charge authorized by this chapter and may provide assistance to fire protection districts in the establishment of a program to develop benefit charges. [1990 c 294 § 9; 1987 c 325
§ 8; 1974 ex.s. c 126 § 8.]
52.18.090
52.18.090 Exemptions. A person who is receiving the
exemption contained in RCW 84.36.381 through 84.36.389
shall be exempt from any legal obligation to pay a portion of
the charge imposed by this chapter according to the following.
(1) A person who meets the income limitation contained
in RCW 84.36.381(5)(a) and does not meet the income limitation contained in RCW 84.36.381(5)(b) (i) or (ii) shall be
exempt from twenty-five percent of the charge.
(2) A person who meets the income limitation contained
in RCW 84.36.381(5)(b)(i) shall be exempt from fifty percent
of the charge.
(3) A person who meets the income limitation contained
in RCW 84.36.381(5)(b)(ii) shall be exempt from seventyfive percent of the charge. [1990 c 294 § 10.]
52.18.900
52.18.900 Severability—1974 ex.s. c 126. If any provision of this 1974 act, or its application to any person or circumstance is held invalid, the remainder of the act, or the
application of the provision to other persons or circumstances
is not affected. [1974 ex.s. c 126 § 9.]
52.18.901
52.18.901 Severability—1990 c 294. If any provision
of this act or its application to any person or circumstance is
(2004 Ed.)
Chapter 52.20 RCW
LOCAL IMPROVEMENT DISTRICTS
Sections
52.18.070
52.18.070 Review board. After notice has been given
to the property owners of the amount of the charge, the board
of fire commissioners of a fire protection district imposing a
benefit charge under this chapter shall form a review board
for at least a two-week period and shall, upon complaint in
writing of a party aggrieved owning property in the district,
reduce the charge of a person who, in their opinion, has been
charged too large a sum, to a sum or amount as they believe
to be the true, fair, and just amount. [1990 c 294 § 8; 1987 c
325 § 7; 1974 ex.s. c 126 § 7.]
52.20.010
52.20.070
L.I.D.'s authorized—Petition or resolution method.
Dismissal, approval of petition or resolution of intention—
Notice of hearing.
Notice must contain statement that assessments may vary from
estimates.
Hearing and subsequent proceedings to be in accordance with
laws applicable to cities and towns—Definitions.
Lands subject to forest fire protection assessments exempt—
Separation of forest-type lands for tax and assessment purposes.
Coupon or registered warrants—Payment—Interest—Registration.
Contracts not general district obligations.
Assessments and charges against state lands: Chapter 79.44 RCW.
Local improvements, supplemental authority: Chapter 35.51 RCW.
52.20.010
52.20.010 L.I.D.'s authorized—Petition or resolution
method. If, for fire protection or emergency medical purposes the acquisition, maintenance, and operation of real
property, buildings, apparatus, and instrumentalities needed
to provide such services are of special benefit to part or all of
the lands in the fire protection district, the board of fire commissioners may include the lands in a local improvement district, and may levy special assessments under a mode of
annual installments extending over a period not exceeding
twenty years on all property specially benefited by any local
improvement, on the basis of the special benefits to pay in
whole or in part the damages or costs of improvements
ordered in the local improvement district. Local improvement districts may be initiated either by resolution of the
board of fire commissioners or by petition signed by the owners of a majority of the acreage of lands to be included within
the local improvement district.
If the petition procedure is followed, the petition shall set
forth generally the necessity for the creation of a local
improvement district, outline the plan of fire or emergency
medical protection to be accomplished, and the means by
which the cost shall be financed. Upon receipt of a petition,
the board of fire commissioners of the district shall at its next
regular meeting review the petition. The owners of the lands
as shown on the general tax roll in the county treasurer's
office, last equalized, shall be used to determine the ownership of the lands to be included in the local improvement district. If the petition is sufficient, the district board shall consider the petition and determine whether the proposed local
improvement appears feasible and of special benefit to the
lands concerned.
If the board of fire commissioners desire[s] to initiate the
formation of a local improvement district by resolution, it
shall adopt a resolution declaring its intention to order the
proposed improvement, set forth the nature and territorial
extent of the proposed improvement, designate the number of
the proposed district, describe the boundaries, state the estimated costs and expenses of the improvement and the proportionate amount of the costs which will be borne by the
[Title 52 RCW—page 23]
52.20.020
Title 52 RCW: Fire Protection Districts
property within the proposed district, and fix a date, time, and
place for a public hearing on the formation of the proposed
district. [1984 c 230 § 48; 1975 1st ex.s. c 130 § 2; 1961 c
161 § 1; 1939 c 34 § 40; RRS § 5654-140.]
Severability—Construction—1975 1st ex.s. c 130: See note following RCW 52.16.070.
52.20.020
52.20.020 Dismissal, approval of petition or resolution of intention—Notice of hearing. If the petition is
found insufficient or if the district board determines that a
local improvement district is not feasible or is of no special
benefit to the lands concerned, it shall dismiss the petition. If
the district board approves the petition or adopts a resolution
of intention to order an improvement, it shall fix a date, hour,
and place for hearing the matter and shall (1) mail notice of
the hearing at least fifteen days before the date fixed for the
public hearing to the owner or reputed owner of each lot,
tract, or parcel of land within the proposed local improvement district as shown on the tax rolls of the county treasurer
at the address shown thereon, and (2) publish notice of the
hearing in a newspaper of general circulation in the county,
for three consecutive weeks prior to the day of the hearing.
The cost of publication shall be paid by the fire protection
district. The notices shall describe the boundaries of the proposed local improvement district and the plan of fire or emergency medical protection proposed, or may refer to the resolution of intention describing the nature and territorial extent
of the proposed improvement. The notices shall state the
means by which the cost shall be financed, shall state the
date, hour, and place of the hearing on the petition and shall
be signed by the secretary of the fire protection district. In
addition, the notice given each owner or reputed owner by
mail shall state the estimated cost and expense of the
improvement to be borne by the particular lot, tract, or parcel.
[1984 c 230 § 49; 1975 1st ex.s. c 130 § 3; 1961 c 161 § 2;
1939 c 34 § 41; RRS § 5654-141.]
Severability—Construction—1975 1st ex.s. c 130: See note following RCW 52.16.070.
52.20.022 Notice must contain statement that assessments may vary from estimates. Any notice given to the
public or to the owners of specific lots, tracts, or parcels of
land relating to the formation of a local improvement district
shall contain a statement that actual assessments may vary
from assessment estimates so long as they do not exceed a
figure equal to the increased true and fair value the improvement adds to the property. [1989 c 243 § 7.]
52.20.022
52.20.025
52.20.025 Hearing and subsequent proceedings to be
in accordance with laws applicable to cities and towns—
Definitions. The hearing and all subsequent proceedings in
connection with the local improvement, including but not
limited to the levying, collection, and enforcement of local
improvement assessments, and the authorization, issuance,
and payment of local improvement bonds and warrants shall
be in accordance with the provisions of law applicable to cities and towns set forth in chapters 35.43, 35.44, 35.45, 35.49,
35.50, and 35.53 RCW. Fire protection districts may exercise
the powers set forth in those chapters: PROVIDED, That no
local improvement guaranty fund may be created: PROVIDED FURTHER, That for the purposes of RCW
[Title 52 RCW—page 24]
52.16.070, 52.20.010, 52.20.020, and 52.20.025, with respect
to the powers granted and the duties imposed in chapters
35.43, 35.44, 35.45, 35.50, and 35.53 RCW:
(1) The words "city or town" mean fire protection district.
(2) The secretary of a fire protection district shall perform the duties of the "clerk" or "city or town clerk."
(3) The board of fire commissioners of a fire protection
district shall perform the duties of the "council" or "city or
town council" or "legislative authority of a city or town."
(4) The board of fire commissioners of a fire protection
district shall perform the duties of the "mayor."
(5) The word "ordinance" means a resolution of the
board of fire commissioners of a fire protection district.
(6) The treasurer or treasurers of the county or counties
in which a fire protection district is located shall perform the
duties of the "treasurer" or "city or town treasurer." [1989 c
63 § 32; 1984 c 230 § 50; 1975 1st ex.s. c 130 § 4; 1961 c 161
§ 3.]
Severability—Construction—1975 1st ex.s. c 130: See note following RCW 52.16.070.
52.20.027
52.20.027 Lands subject to forest fire protection
assessments exempt—Separation of forest-type lands for
tax and assessment purposes. RCW 52.20.010, 52.20.020,
and 52.20.025 shall not apply to any tracts or parcels of
wholly forest-type lands within the district which are
required to pay forest fire protection assessments, as required
by RCW 76.04.610; however, both the tax levy or special
assessments of the district and the forest fire protection
assessment shall apply to the forest land portion of any tract
or parcel which is in the district containing a combination of
both forest-type lands and nonforest-type lands or improvements: PROVIDED, That an owner has the right to have forest-type lands of more than twenty acres in extent separated
from land bearing improvements and from nonforest-type
lands for taxation and assessment purposes upon furnishing
to the assessor a written request containing the proper legal
description. [1986 c 100 § 54; 1984 c 230 § 51; 1961 c 161 §
5.]
52.20.060
52.20.060 Coupon or registered warrants—Payment—Interest—Registration. (1) The district board may
also, if in accordance with the adopted method of financing
the local improvement district, issue and sell at par and
accrued interest coupon or registered warrants payable within
three years from the date thereof exclusively from the local
improvement fund of the district. The coupon or registered
warrants shall bear semiannual interest and shall be in such
form as the board determines and shall state on their face that
they are payable exclusively from the local improvement
fund of the district. Interest shall be payable on the first day
of January and of July. Such warrants may be registered as
provided in RCW 39.46.030.
(2) Notwithstanding subsection (1) of this section, such
warrants may be issued and sold in accordance with chapter
39.46 RCW. [1984 c 230 § 52; 1983 c 167 § 129; 1970 ex.s.
c 56 § 68; 1969 ex.s. c 232 § 90; 1939 c 34 § 45; RRS § 5654145.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
(2004 Ed.)
Special Proceedings
Purpose—1970 ex.s. c 56: See note following RCW 39.52.020.
Validation—Saving—Severability—1969 ex.s. c 232: See notes following RCW 39.52.020.
52.22.051
§ 130; 1947 c 255 § 1; Rem. Supp. 1947 § 5654-153a. Formerly RCW 52.34.010 and 52.32.020.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
52.20.070
52.20.070 Contracts not general district obligations.
A fire protection district shall not be liable under any contract
creating an obligation chargeable against the lands of any
local improvement district therein, unless the liability and the
extent thereof is specifically stated in the contract. [1984 c
230 § 53; 1939 c 34 § 21; RRS § 5654-121.]
Chapter 52.22
Chapter 52.22 RCW
SPECIAL PROCEEDINGS
Sections
52.22.011
52.22.021
52.22.031
52.22.041
52.22.051
52.22.061
52.22.071
52.22.081
52.22.091
52.22.101
52.22.111
Legislative validation.
Special proceedings for judicial confirmation of organization,
bonds, warrants, contracts, etc.
Petition.
Hearing date to be fixed—Notice.
Answer of petition.
Pleading and practice—Motion for new trial.
Jurisdiction of court.
Minor irregularities to be disregarded.
Costs.
Appellate review.
Districts governed by Title 52 RCW.
52.22.011
52.22.011 Legislative validation. The respective areas,
organized and established or attempted to be organized and
established under the authority granted in Title 52 RCW
which since their organization and establishment or
attempted organization and establishment have continuously
maintained their organization as fire protection districts
established under the authority of these statutes are declared
to be properly organized fire protection districts existing
under and by virtue of the statutes having in each case, the
boundaries set forth in the respective organization proceedings of each of them as shown by the files and records in the
offices of the legislative authority or authorities and auditor
or auditors of the county or counties in which the particular
area lies. [1989 c 63 § 33; 1984 c 230 § 66; 1947 c 230 § 1;
Rem. Supp. 1947 § 5654-151o. Formerly RCW 52.32.010.]
52.22.021
52.22.021 Special proceedings for judicial confirmation of organization, bonds, warrants, contracts, etc. The
board of fire commissioners of a fire protection district now
existing or which may be organized under the laws of this
state may commence a special proceeding in the superior
court of the state of Washington. These proceedings for the
organization of the fire district, for the formation of any local
improvement district therein, or proceedings for the authorization, issuance, and sale of coupon or registered warrants or
general obligation bonds issued pursuant to RCW 52.16.061,
either of the fire district or for a local improvement district
therein, or both, whether the bonds or coupon or registered
warrants have been sold, or proceedings for any contract of
the district involving the fire district or any local improvement district therein, and any other proceedings that may
affect the legality of the proceedings concerned or any or all
of the proceedings above outlined, may be judicially examined, approved, and confirmed. [1984 c 230 § 67; 1983 c 167
(2004 Ed.)
Severability—1947 c 255: "If any section or provision of this act shall
be adjudged to be invalid or unconstitutional, such adjudication shall not
affect the validity of the act as a whole or of any section, provision, or part
thereof not adjudged to be invalid or unconstitutional." [1947 c 255 § 10.]
This applies to RCW 52.22.021 through 52.22.101.
52.22.031
52.22.031 Petition. The board of fire commissioners of
the fire protection district shall file in the superior court of the
county in which the fire protection district was organized, a
petition requesting in effect that the proceedings be examined, approved, and confirmed by the court. The petition shall
state the facts showing any of the proceedings that the petition asks the court to examine, approve, and confirm, but
need allege only generally that the fire protection district was
properly organized and that the first board of fire commissioners was properly elected. [1984 c 230 § 68; 1947 c 255 §
2; Rem. Supp. 1947 § 5654-153b. Formerly RCW 52.34.020
and 52.32.030.]
52.22.041
52.22.041 Hearing date to be fixed—Notice. The
court shall fix the time for the hearing of the petition and
direct the clerk of the court to give notice of the filing of the
petition and of the time and place fixed for the hearing. The
notice shall state the time and place of the hearing of the petition and that any person interested in the proceedings sought
by the petition to be examined, approved, and confirmed by
the court, may on or before the date of the hearing of the petition, answer the petition. The petition may be referred to and
described in the notice as the petition of the board of fire
commissioners of . . . . . . county fire protection district No.
. . . . . . . . . (giving the county and its number or any other
name by which it is officially designated), requesting that the
proceedings (naming them as set out in the request of the
petition), be examined, approved, and confirmed by the
court, and shall be signed by the clerk.
The notice shall be given by posting and publishing for
the same length of time that the notice of the hearing on the
petition before the county legislative body to form the district
was required by law to be posted and published, and it may be
published in any legal newspaper designated in the order of
the court fixing the time and place of the hearing of the petition and directing the clerk of the court to give notice thereof.
[1984 c 230 § 69; 1947 c 255 § 3; Rem. Supp. 1947 § 5654153c. Formerly RCW 52.34.030 and 52.32.040.]
Public hearing—Notice—Publication and posting: RCW 52.02.050.
52.22.051
52.22.051 Answer of petition. A person interested in
the fire protection district, or in a local improvement district
therein, involved in the petition or in any proceedings sought
by the petition to be examined, approved, and confirmed by
the court, may answer the petition. The statutes of this state
respecting answers to verified complaints are applicable to
answers to the petition. The person so answering the petition
shall be the defendant in the special proceeding, and the
board of fire commissioners shall be the plaintiff. Every
material statement of the petition not specifically controverted by the answer must, for purposes of the special pro[Title 52 RCW—page 25]
52.22.061
Title 52 RCW: Fire Protection Districts
ceedings, be taken as true, and each person failing to answer
the petition is deemed to admit as true all the material statements of the petition. [1984 c 230 § 70; 1947 c 255 § 4; Rem.
Supp. 1947 § 5654-153d. Formerly RCW 52.34.040 and
52.32.050.]
Pleadings: Chapters 4.32, 4.36 RCW.
52.22.061
52.22.061 Pleading and practice—Motion for new
trial. The rules of pleading and practice governing civil
actions are applicable to the special proceedings provided for
except where inconsistent with this chapter. A motion for a
new trial must be made upon the minutes of the court and in
case of an order granting a new trial, the order must specify
the issue to be reexamined at the new trial. The findings of
the court on the other issues shall not be affected by the order
granting a new trial. [1984 c 230 § 71; 1947 c 255 § 5; Rem.
Supp. 1947 § 5654-153e. Formerly RCW 52.34.050 and
52.32.060.]
New trials: Chapter 4.76 RCW.
52.22.091
52.22.091 Costs. The court shall find and determine, in
these special proceedings, whether the notice of the filing of
the petition and of the time and place of hearing on the petition has been properly posted and published for the time and
in the manner prescribed in this chapter. The costs of the special proceedings may be allowed and apportioned between all
the parties, in the court's discretion. [1984 c 230 § 74; 1947
c 255 § 8; Rem. Supp. 1947 § 5654-153h. Formerly RCW
52.34.080 and 52.32.090.]
52.22.101
52.22.101 Appellate review. Appellate review of an
order granting or refusing a new trial, or from the judgment,
in the special proceedings must be taken by the party
aggrieved within thirty days after the entry of the order or the
judgment. [1988 c 202 § 50; 1984 c 230 § 75; 1947 c 255 §
9; Rem. Supp. 1947 § 5654-153i. Formerly RCW 52.34.090
and 52.32.100.]
Rules of court: Cf. RAP 2.2, 18.22.
Severability—1988 c 202: See note following RCW 2.24.050.
52.22.111
52.22.071
52.22.071 Jurisdiction of court. At the hearing of the
special proceedings, the court has power and jurisdiction to
examine and determine the legality and validity of, and to
approve and confirm, each and all of the proceedings for the
organization of the fire protection district and for the formation of any local improvement district therein under the law
relating to such districts from and including the petition for
the organization of the fire district and for the formation of
any local improvement district therein and all other proceedings which affect the legality of the districts, or the validity
and legality of any coupon or registered warrants or bonds
either of the fire district or for a local improvement district
therein and all proceedings conducted by the fire district for a
contract of the district involving the fire district or a local
improvement district therein, and any other proceeding
which may affect the legality of the proceedings concerned.
[1984 c 230 § 72; 1983 c 167 § 131; 1947 c 255 § 6; Rem.
Supp. 1947 § 5654-153f. Formerly RCW 52.34.060 and
52.32.070.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
52.22.111 Districts governed by Title 52 RCW. All
fire protection districts are governed by Title 52 RCW. [1984
c 230 § 86.]
Chapter 52.26
Sections
52.26.010
52.26.020
52.26.030
52.26.040
52.26.050
52.26.060
52.26.070
52.26.080
52.26.090
52.26.100
52.26.110
52.26.120
52.26.130
52.26.140
52.26.150
52.22.081
52.22.081 Minor irregularities to be disregarded.
The court has full authority and jurisdiction to consider any
question of laches, estoppel, and other infirmities in the position and claims of the defendants, to question the legality of
the proceedings sought by the plaintiff to be confirmed by the
court, and to pass upon and determine them. The court, in
inquiring into the regularity, legality, and correctness of the
proceedings sought by the board of fire commissioners in its
petition to be examined, approved, and confirmed by the
court, must disregard any error, irregularity, or omission
which does not affect the substantial rights of the parties to
the special proceedings. The court may approve and confirm
the proceedings in part, and disapprove and declare illegal or
invalid other or subsequent parts of the proceedings, or it may
approve and confirm all of the proceedings, and make and
enter its decree accordingly. [1984 c 230 § 73; 1947 c 255 §
7; Rem. Supp. 1947 § 5654-153g. Formerly RCW 52.34.070
and 52.32.080.]
[Title 52 RCW—page 26]
Chapter 52.26 RCW
REGIONAL FIRE PROTECTION
SERVICE AUTHORITIES
52.26.160
52.26.170
52.26.180
52.26.190
52.26.200
52.26.210
52.26.220
52.26.230
52.26.240
52.26.250
52.26.260
52.26.270
52.26.900
52.26.901
Findings.
Definitions.
Planning committee—Formation—Powers.
Planning committee—Duties—Formulation of service plan.
Service plan—Taxes and benefit charges.
Service plan—Submission to voters.
Regional fire protection service authority—Formation—Challenges.
Organization and composition of governing board.
Board's powers and duties.
Transfer of responsibilities to authority.
Withdrawal, reannexation of territory.
Dissolution of fire protection district—Election—Transfer of
responsibilities.
Debt and bonding.
Levy of taxes—Limitations—Indebtedness.
Levy of taxes—To be made by county or counties where
authority is located.
Taxation of lands lying within authority and forest protection
assessment area.
Collection of taxes.
Benefit charges.
Benefit charges—Exemptions.
Benefit charges—Resolution—County assessor's duties.
Benefit charges—Administration and collection by county
treasurer.
Benefit charges—Submission to voters—Renewal.
Benefit charges—Establishment—Public hearings—Notice to
property owners.
Benefit charges—Limitation on imposition of property tax.
Benefit charges—Complaints—Review board.
Benefit charges—Model resolution—Assistance by Washington fire commissioners association.
Benefit charges—Additional exemption.
Captions not law—2004 c 129.
Severability—2004 c 129.
52.26.010
52.26.010 Findings. The legislature finds that:
(1) The ability to respond to emergency situations by
many of Washington state's fire protection jurisdictions has
(2004 Ed.)
Regional Fire Protection Service Authorities
not kept up with the state's needs, particularly in urban
regions;
(2) Providing a fire protection service system requires a
shared partnership and responsibility among the federal,
state, local, and regional governments and the private sector;
(3) There are efficiencies to be gained by regional fire
protection service delivery while retaining local control; and
(4) Timely development of significant projects can best
be achieved through enhanced funding options for regional
fire protection service agencies, using already existing taxing
authority to address fire protection emergency service needs
and new authority to address critical fire protection projects
and emergency services. [2004 c 129 § 1.]
52.26.020
52.26.020 Definitions. The definitions in this section
apply throughout this chapter unless the context clearly
requires otherwise.
(1) "Board" means the governing body of a regional fire
protection service authority.
(2) "Regional fire protection service authority" or
"authority" means a municipal corporation, an independent
taxing authority within the meaning of Article VII, section 1
of the state Constitution, and a taxing district within the
meaning of Article VII, section 2 of the state Constitution,
whose boundaries are coextensive with two or more adjacent
fire protection jurisdictions and that has been created by a
vote of the people under this chapter to implement a regional
fire protection service authority plan.
(3) "Regional fire protection service authority planning
committee" or "planning committee" means the advisory
committee created under RCW 52.26.030 to create and propose to fire protection jurisdictions a regional fire protection
service authority plan to design, finance, and develop fire
protection service projects.
(4) "Regional fire protection service authority plan" or
"plan" means a plan to develop and finance a fire protection
service authority project or projects, including, but not limited to, specific capital projects, fire operations and emergency service operations pursuant to RCW 52.26.040(3)(b),
and preservation and maintenance of existing or future facilities.
(5) "Fire protection jurisdiction" means a fire district,
city, town, port district, or Indian tribe.
(6) "Regular property taxes" has the same meaning as in
RCW 84.04.140. [2004 c 129 § 2.]
52.26.030
52.26.030 Planning committee—Formation—Powers. Regional fire protection service authority planning committees are advisory entities that are created, convened, and
empowered as follows:
(1) Any two or more adjacent fire protection jurisdictions may create a regional fire protection service authority
and convene a regional fire protection service authority planning committee. No fire protection jurisdiction may participate in more than one authority.
(2) Each governing body of the fire protection jurisdictions participating in planning under this chapter shall
appoint three elected officials to the authority planning committee. Members of the planning committee may receive
compensation of seventy dollars per day, or portion thereof,
(2004 Ed.)
52.26.040
not to exceed seven hundred dollars per year, for attendance
at planning committee meetings and for performance of other
services in behalf of the authority, and may be reimbursed for
travel and incidental expenses at the discretion of their
respective governing body.
(3) A regional fire protection service authority planning
committee may receive state funding, as appropriated by the
legislature, or county funding provided by the affected counties for start-up funding to pay for salaries, expenses, overhead, supplies, and similar expenses ordinarily and necessarily incurred. Upon creation of a regional fire protection service authority, the authority shall within one year reimburse
the state or county for any sums advanced for these start-up
costs from the state or county.
(4) The planning committee shall conduct its affairs and
formulate a regional fire protection service authority plan as
provided under RCW 52.26.040.
(5) At its first meeting, a regional fire protection service
authority planning committee may elect officers and provide
for the adoption of rules and other operating procedures.
(6) The planning committee may dissolve itself at any
time by a majority vote of the total membership of the planning committee. Any participating fire protection jurisdiction may withdraw upon thirty calendar days' written notice
to the other jurisdictions. [2004 c 129 § 3.]
52.26.040
52.26.040 Planning committee—Duties—Formulation of service plan. (1) A regional fire protection service
authority planning committee shall adopt a regional fire protection service authority plan providing for the design,
financing, and development of fire protection services. The
planning committee may consider the following factors in
formulating its plan:
(a) Land use planning criteria; and
(b) The input of cities and counties located within, or
partially within, a participating fire protection jurisdiction.
(2) The planning committee may coordinate its activities
with neighboring cities, towns, and other local governments
that engage in fire protection planning.
(3) The planning committee shall:
(a) Create opportunities for public input in the development of the plan;
(b) Adopt a plan proposing the creation of a regional fire
protection service authority and recommending design,
financing, and development of fire protection and emergency
service facilities and operations, including maintenance and
preservation of facilities or systems, except that no ambulance service may be recommended unless the regional fire
protection service authority determines that the fire protection jurisdictions that are members of the authority are not
adequately served by existing private ambulance service in
which case the authority may provide for the establishment of
a system of ambulance service to be operated by the authority
or operated by contract after a call for bids; and
(c) Recommend sources of revenue authorized by RCW
52.26.050 and a financing plan to fund selected fire protection service projects.
(4) Once adopted, the plan must be forwarded to the participating fire protection jurisdictions' governing bodies to
initiate the election process under RCW 52.26.060.
[Title 52 RCW—page 27]
52.26.050
Title 52 RCW: Fire Protection Districts
(5) If the ballot measure is not approved, the planning
committee may redefine the selected regional fire protection
service authority projects, financing plan, and the ballot measure. The fire protection jurisdictions' governing bodies may
approve the new plan and ballot measure, and may then submit the revised proposition to the voters at a subsequent election or a special election. If a ballot measure is not approved
by the voters by the third vote, the planning committee is dissolved. [2004 c 129 § 4.]
52.26.050
52.26.050 Service plan—Taxes and benefit charges.
(1) A regional fire protection service authority planning committee may, as part of a regional fire protection service
authority plan, recommend the imposition of some or all of
the following revenue sources, which a regional fire protection service authority may impose upon approval of the voters as provided in this chapter:
(a) Benefit charges under RCW 52.26.180 through
52.26.270;
(b) Property taxes under RCW 52.26.140 through
52.26.170 and 84.52.044 and RCW 84.09.030, 84.52.010,
84.52.052, and 84.52.069; or
(c) Both (a) and (b) of this subsection.
(2) Taxes and benefit charges may not be imposed unless
they are identified in the regional fire protection service
authority plan and the plan is approved by an affirmative vote
of the majority of the voters within the boundaries of the
authority voting on a ballot proposition as set forth in RCW
52.26.060. The voter approval requirement provided in this
section is in addition to any other voter approval requirement
under law for the levying of property taxes or the imposition
of benefit charges. Revenues from these taxes and benefit
charges may be used only to implement the plan as set forth
in this chapter. [2004 c 129 § 5.]
52.26.060
52.26.060 Service plan—Submission to voters. The
governing bodies of two or more adjacent fire protection
jurisdictions, upon receipt of the regional fire protection service authority plan under RCW 52.26.040, may certify the
plan to the ballot, including identification of the tax options
necessary to fund the plan. The governing bodies of the fire
protection jurisdictions may draft a ballot title, give notice as
required by law for ballot measures, and perform other duties
as required to put the plan before the voters of the proposed
authority for their approval or rejection as a single ballot
measure that both approves formation of the authority and
approves the plan. Authorities may negotiate interlocal
agreements necessary to implement the plan. The electorate
is the voters voting within the boundaries of the proposed
regional fire protection service authority. A simple majority
of the total persons voting on the single ballot measure to
approve the plan, establish the authority, and approve the
taxes is required for approval. The authority must act in
accordance with the general election laws of the state. The
authority is liable for its proportionate share of the costs when
the elections are held under RCW *29A.04.320 and
29A.04.330. [2004 c 129 § 6.]
*Reviser's note: RCW 29A.04.320 was repealed by 2004 c 271 s 193.
For later enactment, see RCW 29A.04.321.
[Title 52 RCW—page 28]
52.26.070 Regional fire protection service authority—Formation—Challenges. If the voters approve the
plan, including creation of a regional fire protection service
authority and imposition of taxes, if any, the authority is
formed. The appropriate county election officials shall,
within fifteen days of the final certification of the election
results, publish a notice in a newspaper or newspapers of general circulation in the authority declaring the authority
formed. A party challenging the procedure or the formation
of a voter-approved authority must file the challenge in writing by serving the prosecuting attorney of each county
within, or partially within, the regional fire protection service
authority and the attorney general within thirty days after the
final certification of the election. Failure to challenge within
that time forever bars further challenge of the authority's
valid formation. [2004 c 129 § 7.]
52.26.070
52.26.080 Organization and composition of governing board. (1) The board shall adopt rules for the conduct of
business. The board shall adopt bylaws to govern authority
affairs, which may include:
(a) The time and place of regular meetings;
(b) Rules for calling special meetings;
(c) The method of keeping records of proceedings and
official acts;
(d) Procedures for the safekeeping and disbursement of
funds; and
(e) Any other provisions the board finds necessary to
include.
(2) The governing board shall be determined by the plan
and consist solely of elected officials. [2004 c 129 § 8.]
52.26.080
52.26.090 Board's powers and duties. (1) The governing board of the authority is responsible for the execution of
the voter-approved plan. Participating jurisdictions shall
review the plan every ten years. The board shall:
(a) Levy and impose taxes as authorized in the plan and
approved by authority voters;
(b) Enter into agreements with federal, state, local, and
regional entities and departments as necessary to accomplish
authority purposes and protect the authority's investments;
(c) Accept gifts, grants, or other contributions of funds
that will support the purposes and programs of the authority;
(d) Monitor and audit the progress and execution of fire
protection service projects to protect the investment of the
public and annually make public its findings;
(e) Pay for services and enter into leases and contracts,
including professional service contracts;
(f) Hire, manage, and terminate employees; and
(g) Exercise other powers and duties as may be reasonable to carry out the purposes of the authority.
(2) An authority may acquire, hold, or dispose of real
property.
(3) An authority may exercise the powers of eminent
domain.
(4) An authority may enforce fire codes as provided
under chapter 19.27 RCW. [2004 c 129 § 9.]
52.26.090
52.26.100 Transfer of responsibilities to authority.
(1) All powers, duties, and functions of a participating fire
protection jurisdiction pertaining to providing fire protection
52.26.100
(2004 Ed.)
Regional Fire Protection Service Authorities
services may be transferred, by resolution, to the regional fire
protection service authority.
(2)(a) All reports, documents, surveys, books, records,
files, papers, or written material in the possession of the participating fire protection jurisdiction pertaining to the powers, functions, and duties transferred shall be delivered to the
custody of the regional fire protection service authority. All
real property and personal property including cabinets, furniture, office equipment, motor vehicles, and other tangible
property employed by the participating fire protection jurisdiction in carrying out the powers, functions, and duties
transferred shall be made available to the regional fire protection service authority. All funds, credits, or other assets held
in connection with the powers, functions, and duties transferred shall be assigned to the regional fire protection service
authority.
(b) Any appropriations made to the participating fire protection jurisdiction for carrying out the powers, functions,
and duties transferred shall, on the effective date of the resolution, be transferred and credited to the regional fire protection service authority.
(c) Whenever any question arises as to the transfer of any
personnel, funds, books, documents, records, papers, files,
equipment, or other tangible property used or held in the
exercise of the powers and the performance of the duties and
functions transferred, the governing body of the participating
fire protection jurisdiction shall make a determination as to
the proper allocation.
(3) All rules and all pending business before the participating fire protection jurisdiction pertaining to the powers,
functions, and duties transferred shall be continued and acted
upon by the regional fire protection service authority. All
existing contracts and obligations shall remain in full force
and shall be performed by the regional fire protection service
authority.
(4) The transfer of the powers, duties, functions, and personnel of the participating fire protection jurisdiction shall
not affect the validity of any act performed before the effective date of the resolution.
(5) If apportionments of budgeted funds are required
because of the transfers directed by the resolution, the treasurer under RCW 52.26.170 shall certify the apportionments.
(6) Nothing contained in this section may be construed to
alter any existing collective bargaining unit or the provisions
of any existing collective bargaining agreement until the
agreement has expired or until the bargaining unit has been
modified as provided by law. RCW 35.13.215 through
35.13.235 apply to the transfer of employees under this section. [2004 c 129 § 10.]
52.26.110 Withdrawal, reannexation of territory. (1)
As provided in this section, a regional fire protection service
authority may withdraw areas from its boundaries or reannex
into the authority areas that previously had been withdrawn
from the authority under this section.
(2)(a) The withdrawal of an area is authorized upon: (i)
Adoption of a resolution by the board approving the withdrawal and finding that, in the opinion of the board, inclusion
of this area within the regional fire protection service authority will result in a reduction of the authority's tax levy rate
under the provisions of RCW 84.52.010; or (ii) adoption of a
52.26.110
(2004 Ed.)
52.26.120
resolution by the city or town council approving the withdrawal, if the area is located within the city or town, or adoption of a resolution by the governing body of the fire protection district within which the area is located approving the
withdrawal, if the area is located outside of a city or town, but
within a fire protection district.
(b) A withdrawal under this section is effective at the end
of the day on the thirty-first day of December in the year in
which the resolution under (a)(i) or (ii) of this subsection is
adopted, but for purposes of establishing boundaries for property tax purposes, the boundaries shall be established immediately upon the adoption of the resolution.
(c) The withdrawal of an area from the boundaries of an
authority does not exempt any property therein from taxation
for the purpose of paying the costs of redeeming any indebtedness of the authority existing at the time of withdrawal.
(3)(a) An area that has been withdrawn from the boundaries of a regional fire protection service authority under this
section may be reannexed into the authority upon: (i) Adoption of a resolution by the board proposing the reannexation;
and (ii) adoption of a resolution by the city or town council
approving the reannexation, if the area is located within the
city or town, or adoption of a resolution by the governing
body of the fire protection district within which the area is
located approving the reannexation, if the area is located outside of a city or town but within a fire protection district.
(b) A reannexation under this section shall be effective at
the end of the day on the thirty-first day of December in the
year in which the adoption of the resolution under (a)(ii) of
this subsection occurs, but for purposes of establishing
boundaries for property tax purposes, the boundaries shall be
established immediately upon the adoption of the resolution.
(c)(i) Referendum action on the proposed reannexation
under this section may be taken by the voters of the area proposed to be reannexed if a petition calling for a referendum is
filed with the city or town council, or governing body of the
fire protection district, within a thirty-day period after the
adoption of the resolution under (a)(ii) of this subsection,
which petition has been signed by registered voters of the
area proposed to be reannexed equal in number to ten percent
of the total number of the registered voters residing in that
area.
(ii) If a valid petition signed by the requisite number of
registered voters has been so filed, the effect of the resolutions shall be held in abeyance and a ballot proposition to
authorize the reannexation shall be submitted to the voters of
the area at the next special election date specified in RCW
29A.04.330 that occurs forty-five or more days after the petitions have been validated. Approval of the ballot proposition
authorizing the reannexation by a simple majority vote shall
authorize the reannexation. [2004 c 129 § 11.]
52.26.120 Dissolution of fire protection district—
Election—Transfer of responsibilities. Any fire protection
district within the authority may be dissolved by a majority
vote of the registered electors of the district at an election
conducted by the election officials of the county or counties
in which the district is located in accordance with the general
election laws of the state. The proceedings for dissolution
may be initiated by the adoption of a resolution by the board.
The dissolution of the district shall not cancel outstanding
52.26.120
[Title 52 RCW—page 29]
52.26.130
Title 52 RCW: Fire Protection Districts
obligations of the district or of a local improvement district
within the district, and the county legislative authority or
authorities of the county or counties in which the district was
located may make annual levies against the lands within the
district until the obligations of the districts are paid. All powers, duties, and functions of a dissolved fire protection jurisdiction within the authority boundaries, pertaining to providing fire protection services may be transferred, by resolution,
to the regional fire protection service authority. [2004 c 129
§ 12.]
52.26.130
52.26.130 Debt and bonding. Unless contrary to this
section, chapter 39.42 RCW applies to debt and bonding
under this section. The authority may borrow money, but
may not issue any debt of its own for more than ten years'
duration. An authority may issue notes or other evidences of
indebtedness with a maturity of not more than twenty years.
An authority may, when authorized by the plan, enter into
agreements with the state to pledge taxes or other revenues of
the authority for the purpose of paying in part or whole principal and interest on bonds issued by the authority. The contracts pledging revenues and taxes are binding for the term of
the agreement, but not to exceed twenty-five years, and no
tax pledged by an agreement may be eliminated or modified
if it would impair the pledge of the agreement. [2004 c 129 §
14.]
52.26.140
52.26.140 Levy of taxes—Limitations—Indebtedness. (1) To carry out the purposes for which a regional fire
protection service authority is created, as authorized in the
plan and approved by the voters, the governing board of an
authority may annually levy the following taxes:
(a) An ad valorem tax on all taxable property located
within the authority not to exceed fifty cents per thousand
dollars of assessed value;
(b) An ad valorem tax on all property located within the
authority not to exceed fifty cents per thousand dollars of
assessed value and which will not cause the combined levies
to exceed the constitutional or statutory limitations. This
levy, or any portion of this levy, may also be made when dollar rates of other taxing units are released by agreement with
the other taxing units from their authorized levies; and
(c) An ad valorem tax on all taxable property located
within the authority not to exceed fifty cents per thousand
dollars of assessed value if the authority has at least one fulltime, paid employee, or contracts with another municipal corporation for the services of at least one full-time, paid
employee. This levy may be made only if it will not affect
dollar rates which other taxing districts may lawfully claim
nor cause the combined levies to exceed the constitutional or
statutory limitations or both.
(2) Levies in excess of the amounts provided in subsection (1) of this section or in excess of the aggregate dollar rate
limitations or both may be made for any authority purpose
when so authorized at a special election under RCW
84.52.052. Any such tax when levied must be certified to the
proper county officials for the collection of the tax as for
other general taxes. The taxes when collected shall be placed
in the appropriate authority fund or funds as provided by law,
and must be paid out on warrants of the auditor of the county
[Title 52 RCW—page 30]
in which all, or the largest portion of, the authority is located,
upon authorization of the governing board of the authority.
(3) Authorities are additionally authorized to incur general indebtedness and to issue general obligation bonds for
capital purposes as provided in RCW 52.26.130. Authorities
may provide for the retirement of general indebtedness by
excess property tax levies, when the voters of the authority
have approved a proposition authorizing such indebtedness
and levies by an affirmative vote of three-fifths of those voting on the proposition at such an election, at which election
the total number of persons voting shall constitute not less
than forty percent of the voters in the authority who voted at
the last preceding state general election. Elections must be
held as provided in RCW 39.36.050. The maximum term of
any bonds issued under the authority of this section may not
exceed ten years and must be issued and sold in accordance
with chapter 39.46 RCW.
(4) For purposes of this section, the term "value of the
taxable property" has the same meaning as in RCW
39.36.015. [2004 c 129 § 15.]
52.26.150
52.26.150 Levy of taxes—To be made by county or
counties where authority is located. At the time of making
general tax levies in each year, the county legislative authority or authorities of the county or counties in which a regional
fire protection service authority is located shall make the
required levies for authority purposes against the real and
personal property in the authority in accordance with the
equalized valuations of the property for general tax purposes
and as a part of the general taxes. The tax levies are part of
the general tax roll and must be collected as a part of the general taxes against the property in the authority. [2004 c 129 §
16.]
52.26.160
52.26.160 Taxation of lands lying within authority
and forest protection assessment area. In the event that
lands lie within both a regional fire protection service authority and a forest protection assessment area they shall be taxed
and assessed as follows:
(1) If the lands are wholly unimproved, they are subject
to forest protection assessments but not to authority levies;
(2) If the lands are wholly improved, they are subject to
authority levies but not to forest protection assessments; and
(3) If the lands are partly improved and partly unimproved, they are subject both to authority levies and to forest
protection assessments. However, upon request, accompanied by appropriate legal descriptions, the county assessor
shall segregate any unimproved portions which each consist
of twenty or more acres, and thereafter the unimproved portion or portions are subject only to forest protection assessments. [2004 c 129 § 17.]
52.26.170
52.26.170 Collection of taxes. It is the duty of the
county treasurer of the county in which the regional fire protection service authority created under this chapter is located
to collect taxes authorized and levied under this chapter.
However, when a regional fire protection service authority is
located in more than one county, the county treasurer of each
county in which the authority is located shall collect the
regional fire protection service authority's taxes that are
(2004 Ed.)
Regional Fire Protection Service Authorities
imposed on property located within the county and transfer
these funds to the treasurer of the county in which the majority of the authority lies. [2004 c 129 § 18.]
52.26.180
52.26.180 Benefit charges. (1) The governing board of
a regional fire protection service authority may by resolution,
as authorized in the plan and approved by the voters, for
authority purposes authorized by law, fix and impose a benefit charge on personal property and improvements to real
property which are located within the authority on the date
specified and which have received or will receive the benefits
provided by the authority, to be paid by the owners of the
properties. A benefit charge does not apply to personal property and improvements to real property owned or used by any
recognized religious denomination or religious organization
as, or including, a sanctuary or for purposes related to the
bona fide religious ministries of the denomination or religious organization, including schools and educational facilities used for kindergarten, primary, or secondary educational
purposes or for institutions of higher education and all
grounds and buildings related thereto. However, a benefit
charge does apply to personal property and improvements to
real property owned or used by any recognized religious
denomination or religious organization for business operations, profit-making enterprises, or activities not including
use of a sanctuary or related to kindergarten, primary, or secondary educational purposes or for institutions of higher education. The aggregate amount of these benefit charges in any
one year may not exceed an amount equal to sixty percent of
the operating budget for the year in which the benefit charge
is to be collected. It is the duty of the county legislative
authority or authorities of the county or counties in which the
regional fire protection service authority is located to make
any necessary adjustments to assure compliance with this
limitation and to immediately notify the governing board of
an authority of any changes thereof.
(2) A benefit charge imposed must be reasonably proportioned to the measurable benefits to property resulting from
the services afforded by the authority. It is acceptable to
apportion the benefit charge to the values of the properties as
found by the county assessor or assessors modified generally
in the proportion that fire insurance rates are reduced or entitled to be reduced as the result of providing the services. Any
other method that reasonably apportions the benefit charges
to the actual benefits resulting from the degree of protection,
which may include but is not limited to the distance from regularly maintained fire protection equipment, the level of fire
prevention services provided to the properties, or the need of
the properties for specialized services, may be specified in
the resolution and is subject to contest on the grounds of
unreasonable or capricious action or action in excess of the
measurable benefits to the property resulting from services
afforded by the authority. The governing board of an authority may determine that certain properties or types or classes
of properties are not receiving measurable benefits based on
criteria they establish by resolution. A benefit charge authorized by this chapter is not applicable to the personal property
or improvements to real property of any individual, corporation, partnership, firm, organization, or association maintaining a fire department and whose fire protection and training
system has been accepted by a fire insurance underwriter
(2004 Ed.)
52.26.210
maintaining a fire protection engineering and inspection service authorized by the state insurance commissioner to do
business in this state, but the property may be protected by
the authority under a contractual agreement.
(3) For administrative purposes, the benefit charge
imposed on any individual property may be compiled into a
single charge, provided that the authority, upon request of the
property owner, provide an itemized list of charges for each
measurable benefit included in the charge.
(4) For the purposes of this section and RCW 52.26.190
through 52.26.270, the following definitions apply:
(a)(i) "Personal property" includes every form of tangible personal property including, but not limited to, all goods,
chattels, stock in trade, estates, or crops.
(ii) "Personal property" does not include any personal
property used for farming, field crops, farm equipment, or
livestock.
(b) "Improvements to real property" does not include
permanent growing crops, field improvements installed for
the purpose of aiding the growth of permanent crops, or other
field improvements normally not subject to damage by fire.
[2004 c 129 § 24.]
52.26.190
52.26.190 Benefit charges—Exemptions. All personal
property not assessed and subjected to ad valorem taxation
under Title 84 RCW, all property under contract or for which
the regional fire protection service authority is receiving payment for as authorized by law, all property subject to chapter
54.28 RCW, and all property that is subject to a contract for
services with an authority, is exempt from the benefit charge
imposed under this chapter. [2004 c 129 § 25.]
52.26.200
52.26.200 Benefit charges—Resolution—County
assessor's duties. (1) The resolution establishing benefit
charges as specified in RCW 52.26.180 must specify, by
legal geographical areas or other specific designations, the
charge to apply to each property by location, type, or other
designation, or other information that is necessary to the
proper computation of the benefit charge to be charged to
each property owner subject to the resolution.
(2) The county assessor of each county in which the
regional fire protection service authority is located shall
determine and identify the personal properties and improvements to real property that are subject to a benefit charge in
each authority and shall furnish and deliver to the county
treasurer of that county a listing of the properties with information describing the location, legal description, and address
of the person to whom the statement of benefit charges is to
be mailed, the name of the owner, and the value of the property and improvements, together with the benefit charge to
apply to each. These benefit charges must be certified to the
county treasurer for collection in the same manner that is
used for the collection of fire protection charges for forest
lands protected by the department of natural resources under
RCW 76.04.610 and the same penalties and provisions for
collection apply. [2004 c 129 § 26.]
52.26.210
52.26.210 Benefit charges—Administration and collection by county treasurer. Each regional fire protection
service authority shall contract, prior to the imposition of a
[Title 52 RCW—page 31]
52.26.220
Title 52 RCW: Fire Protection Districts
benefit charge, for the administration and collection of the
benefit charge by each county treasurer, who shall deduct a
percentage, as provided by contract to reimburse the county
for expenses incurred by the county assessor and county treasurer in the administration of the resolution and this chapter.
The county treasurer shall make distributions each year, as
the charges are collected, in the amount of the benefit charges
imposed on behalf of each authority, less the deduction provided for in the contract. [2004 c 129 § 27.]
52.26.220
52.26.220 Benefit charges—Submission to voters—
Renewal. (1) Notwithstanding any other provision in this
chapter to the contrary, any benefit charge authorized by this
chapter is not effective unless a proposition to impose the
benefit charge is approved by a sixty percent majority of the
voters of the regional fire protection service authority voting
at a general election or at a special election called by the
authority for that purpose, held within the authority. An election held under this section must be held not more than
twelve months prior to the date on which the first charge is to
be assessed. A benefit charge approved at an election expires
in six years or fewer as authorized by the voters, unless subsequently reapproved by the voters.
(2) The ballot must be submitted so as to enable the voters favoring the authorization of a regional fire protection service authority benefit charge to vote "Yes" and those opposed
to vote "No." The ballot question is as follows:
"Shall . . . . . . the regional fire protection service
authority composed of (insert the participating fire
protection jurisdictions) . . . . . be authorized to
impose benefit charges each year for . . . . (insert
number of years not to exceed six) years, not to
exceed an amount equal to sixty percent of its operating budget, and be prohibited from imposing an
additional property tax under RCW
52.26.140(1)(c)?
YES
NO
' '"
ted as provided in this chapter, the governing board of the
regional fire protection service authority shall hold a public
hearing specifically setting forth its proposal to impose benefit charges for the support of its legally authorized activities
that will maintain or improve the services afforded in the
authority. A report of the public hearing shall be filed with
the county treasurer of each county in which the property is
located and be available for public inspection.
(2) Prior to November 15th of each year the governing
board of the authority shall hold a public hearing to review
and establish the regional fire protection service authority
benefit charges for the subsequent year.
(3) All resolutions imposing or changing the benefit
charges must be filed with the county treasurer or treasurers
of each county in which the property is located, together with
the record of each public hearing, before November 30th
immediately preceding the year in which the benefit charges
are to be collected on behalf of the authority.
(4) After the benefit charges have been established, the
owners of the property subject to the charge must be notified
of the amount of the charge. [2004 c 129 § 29.]
52.26.240
52.26.240 Benefit charges—Limitation on imposition
of property tax. A regional fire protection service authority
that imposes a benefit charge under this chapter shall not
impose all or part of the property tax authorized under RCW
52.26.140(1)(c). [2004 c 129 § 30.]
52.26.250
52.26.250 Benefit charges—Complaints—Review
board. After notice has been given to the property owners of
the amount of the charge, the governing board of a regional
fire protection service authority imposing a benefit charge
under this chapter shall form a review board for at least a twoweek period and shall, upon complaint in writing of an
aggrieved party owning property in the authority, reduce the
charge of a person who, in their opinion, has been charged
too large a sum, to a sum or amount as they believe to be the
true, fair, and just amount. [2004 c 129 § 31.]
52.26.260
(3) Authorities renewing the benefit charge may elect to
use the following alternative ballot:
"Shall . . . . . the regional fire protection service
authority composed of (insert the participating fire
protection jurisdictions) . . . . . . be authorized to
continue voter-authorized benefit charges each year
for . . . . (insert number of years not to exceed six)
years, not to exceed an amount equal to sixty percent of its operating budget, and be prohibited from
imposing an additional property tax under RCW
52.26.140(1)(c)?
YES
NO
' '"
[2004 c 129 § 28.]
52.26.230
52.26.230 Benefit charges—Establishment—Public
hearings—Notice to property owners. (1) Not fewer than
ten days nor more than six months before the election at
which the proposition to impose the benefit charge is submit[Title 52 RCW—page 32]
52.26.260 Benefit charges—Model resolution—
Assistance by Washington fire commissioners association. The Washington fire commissioners association, as
soon as practicable, shall draft a model resolution to impose
the regional fire protection service authority benefit charge
authorized by this chapter and may provide assistance to
authorities in the establishment of a program to develop benefit charges. [2004 c 129 § 32.]
52.26.270
52.26.270 Benefit charges—Additional exemption. A
person who is receiving the exemption contained in RCW
84.36.381 through 84.36.389 is exempt from any legal obligation to pay a portion of the benefit charge imposed under
this chapter as follows:
(1) A person who meets the income limitation contained
in RCW 84.36.381(5)(a) and does not meet the income limitation contained in RCW 84.36.381(5)(b) (i) or (ii) is exempt
from twenty-five percent of the charge;
(2) A person who meets the income limitation contained
in RCW 84.36.381(5)(b)(i) is exempt from fifty percent of
the charge; and
(2004 Ed.)
Miscellaneous Provisions
(3) A person who meets the income limitation contained
in RCW 84.36.381(5)(b)(ii) shall be exempt from seventyfive percent of the charge. [2004 c 129 § 33.]
52.26.900
52.26.900 Captions not law—2004 c 129. Captions
used in this act are not any part of the law. [2004 c 129 § 35.]
52.26.901
52.26.901 Severability—2004 c 129. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[2004 c 129 § 37.]
52.30.060
present in his budget submittal to the governor an amount
sufficient to reimburse affected school districts for the moneys necessary to pay the costs of the uniform rates established
by the insurance commissioner. [1979 c 151 § 164; 1974
ex.s. c 88 § 1; 1973 1st ex.s. c 64 § 1; 1941 c 139 § 1; Rem.
Supp. 1941 § 5654-143a. Formerly RCW 52.36.020.]
Effective date—1974 ex.s. c 88: "This 1974 amendatory act shall take
effect on July 1, 1974." [1974 ex.s. c 88 § 2.]
Effective date—1973 1st ex.s. c 64: "This 1973 amendatory act shall
take effect on July 1, 1974." [1973 1st ex.s. c 64 § 2.]
Fire, medical, or other emergency services provided to county by political
subdivision—Financial assistance authorized: RCW 36.32.470.
Fire protection services for state-owned facilities: RCW 35.21.775.
52.30.040 Civil service for employees. A fire protection district with a fully-paid fire department may, by resolution of its board of fire commissioners, provide for civil service in its fire department in the same manner, with the same
powers, and with the same force and effect as provided by
chapter 41.08 RCW for cities, towns, and municipalities,
including restrictions against the discharge of an employee
because of residence outside the limits of the fire protection
district. [1984 c 230 § 79; 1971 ex.s. c 256 § 2; 1949 c 72 §
1; Rem. Sup p. 1 949 § 56 54- 12 0a. For mer ly RCW
52.36.060.]
52.30.040
Chapter 52.30
Chapter 52.30 RCW
MISCELLANEOUS PROVISIONS
Sections
52.30.020
52.30.040
52.30.050
52.30.060
52.30.020
Property of public agency included within district—Contracts
for services.
Civil service for employees.
Residency not grounds for discharge of civil service employees.
Change of district name—Resolution.
52.30.020 Property of public agency included within
district—Contracts for services. Wherever a fire protection district has been organized which includes within its area
or is adjacent to, buildings and equipment, except those
leased to a nontax exempt person or organization, owned by
the legislative or administrative authority of a state agency or
institution or a municipal corporation, the agency or institution or municipal corporation involved shall contract with
such district for fire protection services necessary for the protection and safety of personnel and property pursuant to the
provisions of chapter 39.34 RCW, as now or hereafter
amended: PROVIDED, That nothing in this section shall be
construed to require that any state agency, institution, or
municipal corporation contract for services which are performed by the staff and equipment of such state agency, institution, or municipal corporation: PROVIDED FURTHER,
That nothing in this section shall apply to state agencies or
institutions or municipal corporations which are receiving
fire protection services by contract from another municipality, city, town or other entities: AND PROVIDED FURTHER, That school districts shall receive fire protection services from the fire protection districts in which they are
located without the necessity of executing a contract for such
fire protection services: PROVIDED FURTHER, That prior
to September 1, 1974 the superintendent of public instruction, the insurance commissioner, the director of financial
management, and the executive director of the Washington
fire commissioners association, or their designees, shall
develop criteria to be used by the insurance commissioner in
establishing uniform rates governing payments to fire districts by school districts for fire protection services. On or
before September 1, 1974, the insurance commissioner shall
establish such rates to be payable by school districts on or
before January 1st of each year commencing January 1, 1975,
payable July 1, 1975: AND PROVIDED FURTHER, That
beginning with the 1975-77 biennium and in each biennium
thereafter the superintendent of public instruction shall
(2004 Ed.)
52.30.050 Residency not grounds for discharge of
civil service employees. Residence of an employee outside
the limits of a fire protection district is not grounds for discharge of any regularly-appointed civil service employee otherwise qualified. [1984 c 230 § 80; 1971 ex.s. c 256 § 1. Formerly RCW 52.36.065.]
52.30.050
52.30.060 Change of district name—Resolution. The
name of a fire protection district shall be changed, as proposed by resolution of the board of fire commissioners of the
district, upon the adoption of a resolution approving the
change by the county legislative authority of the county in
which all, or the largest portion, of a fire protection district is
located. [1989 c 63 § 34.]
52.30.060
[Title 52 RCW—page 33]
Title 53
PORT DISTRICTS
Title 53
Chapters
53.04 Formation.
53.06 Coordination of administrative programs and
operations.
53.08 Powers.
53.12 Commissioners—Elections.
53.16 Revision of commissioner districts.
53.18 Employment relations—Collective bargaining
and arbitration.
53.20 Harbor improvements.
53.25 Industrial development districts—Marginal
lands.
53.29 Trade center act.
53.31 Export trading companies.
53.34 Toll facilities.
53.35 Budgets.
53.36 Finances.
53.40 Revenue bonds and warrants.
53.44 Funding and refunding indebtedness—1947 act.
53.46 Consolidation.
53.47 Dissolution of inactive port districts.
53.48 Dissolution of port and other districts.
53.49 Disposition of funds on dissolution of certain districts.
53.54 Aircraft noise abatement.
Airport districts: Chapter 14.08 RCW.
Assessments and charges against state lands: Chapter 79.44 RCW.
Conveyance of real property by public bodies—Recording: RCW 65.08.095.
Credit card use by local governments: RCW 43.09.2855.
Disincorporation of water-sewer and other districts in counties with a population of two hundred ten thousand or more: Chapter 57.90 RCW.
Hospitalization and medical aid for public employees and dependents—Premiums, governmental contributions authorized: RCW 41.04.180,
41.04.190.
Material removed for channel or harbor improvement, or flood control—
Use for public purpose: RCW 79.90.150.
Municipal corporation may authorize investment of funds which are in custody of county treasurer or other municipal corporation treasurer:
RCW 36.29.020.
Outdoor recreation land acquisition or improvement under marine recreation land act: Chapter 79A.25 RCW.
Pollution control—Municipal bonding authority: Chapter 70.95A RCW.
Public bodies may retain collection agencies to collect public debts—Fees:
RCW 19.16.500.
Title to certain second class shorelands vested in port districts: RCW
79.94.230.
Vacation of streets or alleys abutting on bodies of water by city or town prohibited with specified exceptions such as when the vacated property is
to be used for port, recreational, educational, etc. purposes: RCW
35.79.035.
Chapter 53.04
Chapter 53.04 RCW
FORMATION
Sections
53.04.010
(2004 Ed.)
Port districts authorized—Purposes—Powers—Public hearing.
53.04.015
53.04.016
53.04.017
53.04.020
53.04.023
53.04.031
53.04.060
53.04.070
53.04.080
53.04.085
53.04.100
53.04.110
53.04.120
53.04.150
53.04.160
53.04.170
53.04.180
53.04.190
Port districts in areas lacking appropriate bodies of water—
Authorized—Purposes.
Port districts in areas lacking appropriate bodies of water—
Authority an additional and concurrent method.
Port districts in areas lacking appropriate bodies of water—
Elections.
Formation of county-wide district.
Formation of less than county-wide district.
Initiating petition, commissioner district descriptions—Initial
election of commissioners.
District declared formed.
Expense of election.
Annexation of territory—Petition—Election.
Petition for annexation to port district.
Order of annexation—Liability of area annexed.
Change of name.
Transfer of port district property to adjacent district—Procedure—Boundary changes—Jurisdiction.
Alternative annexation methods—Petition for resolution—
Districts authorized to use—Petition requirements.
Alternative annexation methods—Petition for resolution—
Where filed—Commission's duties.
Alternative annexation methods—Petition for resolution—
Hearing—Resolution.
Alternative annexation methods—Annexation by written consent—Districts authorized to use—Resolution.
Alternative annexation methods—Outstanding indebtedness.
53.04.010
53.04.010 Port districts authorized—Purposes—
Powers—Public hearing. (1) Port districts are hereby
authorized to be established in the various counties of the
state for the purposes of acquisition, construction, maintenance, operation, development and regulation within the district of harbor improvements, rail or motor vehicle transfer
and terminal facilities, water transfer and terminal facilities,
air transfer and terminal facilities, or any combination of such
transfer and terminal facilities, and other commercial transportation, transfer, handling, storage and terminal facilities,
and industrial improvements.
(2) Powers of a port district that is located in a county
that has a contiguous border with another state, and a population between fifty and seventy thousand, shall be exercised
within the district, except as otherwise provided by statute or
pursuant to an interlocal cooperation agreement with another
public agency as defined in chapter 39.34 RCW. In addition
to other requirements of chapter 39.34 RCW, such an interlocal cooperation agreement may involve the exercise of a port
district's powers for a port district that is located in a county
that has contiguous borders with another state, and a population between fifty and seventy thousand, outside the boundaries of the state of Washington in whole or in part only if
found, by resolution of the port district commission exercising such authority, to be reasonably necessary for the effective exercise of the port district's statutory powers and for the
benefit of the inhabitants of the district and the state of Washington. The resolution may be adopted only after a public
hearing of which notice has been published in a newspaper of
general circulation within the district at least ten days in
advance. [1999 c 306 § 2; 1963 c 147 § 1; 1911 c 92 § 1; RRS
§ 9688.]
[Title 53 RCW—page 1]
53.04.015
Title 53 RCW: Port Districts
Purpose—1999 c 306: "Article VIII, section 8 of the Washington state
Constitution authorizes the use of public funds by port districts in such manner as the legislature may prescribe for industrial development or trade promotion. The legislature recognizes a growing need for a Washington port
district that is located in a county that has a contiguous border with another
state, and a population between fifty and seventy thousand, to participate
with other public agencies of this state and an adjoining state to attract,
encourage, and develop industry and promote trade on both sides of their
borders, for the economic benefit to the state of Washington. RCW
53.08.240 authorizes agreements between two or more port districts for the
exercise of powers both within and outside their districts, and further authorizes contracts by port districts with other governmental entities. The interlocal cooperation act, chapter 39.34 RCW, also authorizes joint agreements
and contracts between port districts and other state and local public agencies
including political subdivisions of other states. However, there is uncertainty
as to whether or not a port district that is located in a county that has a contiguous border with another state, and a population between fifty and seventy
thousand, may exercise industrial development or trade promotion powers
outside the district or state boundaries except jointly with another Washington port district.
The purpose of this act is to define and clarify the authority of a
Washington port district that is located in a county that has a contiguous border with another state, and a population between fifty and seventy thousand,
to exercise those powers jointly or in cooperation with other public agencies
when found to be necessary and beneficial to the people of this state." [1999
c 306 § 1.]
Construction—1911 c 92: "This act shall not be construed to repeal,
amend or modify any law heretofore enacted providing a method of harbor
improvement, regulation or control in this state, but shall be held to be an
additional and concurrent method providing for such purpose." [1911 c 92 §
14.]
Establishment of harbor lines: State Constitution Art. 15 § 1 (Amendment
15).
53.04.015
53.04.015 Port districts in areas lacking appropriate
bodies of water—Authorized—Purposes. In areas which
lack appropriate bodies of water so that harbor improvements
cannot be established, port districts are hereby authorized to
be established under the laws of the state, for the purposes for
which port districts may be established under RCW
53.04.010, and such port districts shall have all of the powers,
privileges and immunities conferred upon all other port districts under the laws of this state, including the same powers
and rights relating to municipal airports that other port districts now have or hereafter may be granted. [1963 c 147 § 2;
1959 c 94 § 1.]
53.04.016
53.04.016 Port districts in areas lacking appropriate
bodies of water—Authority an additional and concurrent
method. RCW 53.04.015 shall not be construed to repeal,
amend or modify any law heretofore enacted providing a
method of harbor improvement, regulation or control; acquisition, maintenance and operation of municipal airports; or
industrial development; but shall be held to be an additional
and concurrent method providing such purposes. [1959 c 94
§ 2.]
called for that purpose, the county legislative authority of any
county in this state may, or on petition of ten percent of the
registered voters of such county based on the total vote cast in
the last general county election, shall, by resolution submit to
the voters of such county the proposition of creating a port
district coextensive with the limits of such county. Such petition shall be filed with the county auditor, who shall within
fifteen days examine the signatures thereof and certify to the
sufficiency or insufficiency thereof, and for such purpose the
county auditor shall have access to all registration books in
the possession of the officers of any incorporated city or town
in such proposed port district. If such petition be found to be
insufficient, it shall be returned to the persons filing the same,
who may amend or add names thereto for ten days, when the
same shall be returned to the county auditor, who shall have
an additional fifteen days to examine the same and attach his
or her certificate thereto. No person having signed such petition shall be allowed to withdraw his or her name therefrom
after the filing of the same with the county auditor. Whenever
such petition shall be certified to as sufficient, the county
auditor shall forthwith transmit the same, together with his or
her certificate of sufficiency attached thereto, to the legislative authority of the county, who shall submit such proposition at the next general election or, if such petition so
requests, the county legislative authority shall, at their first
meeting after the date of such certificate, by resolution, call a
special election to be held in accordance with *RCW
29.13.010 and 29.13.020. The notice of election shall state
the boundaries of the proposed port district and the object of
such election. In submitting the question to the voters for
their approval or rejection, the proposition shall be expressed
on the ballot substantially in the following terms:
"Port of . . . . . ., Yes." (giving the name of the principal
seaport city within such proposed port district, or if there be
more than one city of the same class within such district, such
name as may be determined by the legislative authority of the
county).
"Port of . . . . . ., No." (giving the name of the principal
seaport city within such port district, or if there be more than
one city of the same class within such district, such name as
may be determined by the legislative authority of the county).
[1992 c 147 § 1; 1990 c 259 § 15; 1986 c 262 § 1; 1971 ex.s.
c 157 § 1; 1913 c 62 § 1; 1911 c 92 § 2; RRS § 9689. Formerly RCW 53.04.020 through 53.04.040.]
*Reviser's note: RCW 29.13.010 and 29.13.020 were recodified as
RCW 29A.04.320 and 29A.04.330, respectively, pursuant to 2003 c 111 §
2401, effective July 1, 2004. RCW 29A.04.320 was subsequently repealed
by 2004 c 271 § 193.
Severability—1992 c 147: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1992 c 147 § 4.]
53.04.017
53.04.017 Port districts in areas lacking appropriate
bodies of water—Elections. All elections with respect to
any such port districts authorized by RCW 53.04.015 and
53.04.016 shall be held, conducted and the results canvassed
in the same manner and at the same time as now or hereafter
provided by law for other port districts. [1959 c 94 § 3.]
53.04.020
53.04.020 Formation of county-wide district. At any
general election or at any special election which may be
[Title 53 RCW—page 2]
Effective date—1971 ex.s. c 157: "The effective date of this act shall
be May 1, 1972." [1971 ex.s. c 157 § 4.]
53.04.023
53.04.023 Formation of less than county-wide district. A less than county-wide port district with an assessed
valuation of at least one hundred fifty million dollars may be
created in a county that already has a less than county-wide
port district located within its boundaries. Except as provided
in this section, such a port district shall be created in accor(2004 Ed.)
Formation
dance with the procedure to create a county-wide port district.
The effort to create such a port district is initiated by the
filing of a petition with the county auditor calling for the creation of such a port district, describing the boundaries of the
proposed port district, designating either three or five commissioner positions, describing commissioner districts if the
petitioners propose that the commissioners represent districts, and providing a name for the proposed port district.
The petition must be signed by voters residing within the proposed port district equal in number to at least ten percent of
such voters who voted at the last county general election.
A public hearing on creation of the proposed port district
shall be held by the county legislative authority if the county
auditor certifies that the petition contained sufficient valid
signatures. Notice of the public hearing must be published in
the county's official newspaper at least ten days prior to the
date of the public hearing. After taking testimony, the county
legislative authority may make changes in the boundaries of
the proposed port district if it finds that such changes are in
the public interest and shall determine if the creation of the
port district is in the public interest. No area may be added to
the boundaries unless a subsequent public hearing is held on
the proposed port district.
The county legislative authority shall submit a ballot
proposition authorizing the creation of the proposed port district to the voters of the proposed port district, at any special
election date provided in *RCW 29.13.020, if it finds the creation of the port district to be in the public interest.
The port district shall be created if a majority of the voters voting on the ballot proposition favor the creation of the
port district. The initial port commissioners shall be elected at
the same election, from districts or at large, as provided in the
petition initiating the creation of the port district. The election
shall be otherwise conducted as provided in RCW 53.12.172,
but the election of commissioners shall be null and void if the
port district is not created. [1997 c 256 § 1; 1994 c 223 § 84;
1993 c 70 § 1; 1992 c 147 § 2.]
*Reviser's note: RCW 29.13.020 was recodified as RCW 29A.04.330
pursuant to 2003 c 111 § 2401, effective July 1, 2004.
Effective date—1997 c 256: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[May 5, 1997]." [1997 c 256 § 2.]
Severability—1992 c 147: See note following RCW 53.04.020.
53.04.031
53.04.031 Initiating petition, commissioner district
descriptions—Initial election of commissioners. Three
commissioner districts, each with approximately the same
population, shall be described in the petition proposing the
creation of a port district under RCW 53.04.020, if the process to create the port district was initiated by voter petition,
or shall be described by the county legislative authority, if the
process to initiate the creation of the port district was by
action of the county legislative authority. However, commissioner districts shall not be described if the commissioner districts of the proposed port district shall be the same as the
county legislative authority districts.
The initial port commissioners shall be elected as provided in RCW 53.12.172. [1994 c 223 § 83.]
(2004 Ed.)
53.04.080
53.04.060
53.04.060 District declared formed. Within five days
after an election held under the provisions of RCW
53.04.020, the board of county commissioners shall canvass
the returns, and if at such election a majority of the voters
voting upon the proposition shall vote in favor of the formation of the district, the board of county commissioners shall
so declare in its canvass of the returns of such election, and
the port district shall then be and become a municipal corporation of the state of Washington and the name of such port
district shall be "Port of . . . . . ." (inserting the name appearing on the ballot). [1959 c 17 § 2. Prior: 1913 c 62 § 2, part;
1911 c 92 § 3, part; RRS § 9690, part.]
53.04.070
53.04.070 Expense of election. All expenses of elections for the formation of such port districts shall be paid by
the county holding such election, and such expenditure is
hereby declared to be for a county purpose, and the money
paid out for such purpose shall be repaid to such county by
the port district, if formed. [1959 c 17 § 6. Prior: 1913 c 62
§ 2, part; 1911 c 92 § 3, part; RRS § 9690, part.]
53.04.080
53.04.080 Annexation of territory—Petition—Election. At any general election or at any special election which
may be called for that purpose the county legislative authority of any county in this state in which there exists a port district which is not coextensive with the limits of the county,
shall on petition of the commissioners of such port district, by
resolution, submit to the voters residing within the limits of
any territory which the existing port district desires to annex
or include in its enlarged port district, the proposition of
enlarging the limits of such existing port districts so as to
include therein the whole of the territory embraced within the
boundaries of such county, or such territory as may be
described in the petition by legal subdivisions. Such petition
shall be filed with the county auditor, who shall forthwith
transmit the same to the county legislative authority, who
shall submit such proposition at the next general election, or,
if such petition so request, the county legislative authority,
shall at their first meeting after the date of filing such petition,
by resolution, call a special election to be held in accordance
with *RCW 29.13.010 and 29.13.020. The notice of election
shall state the boundaries of the proposed enlarged port district and the object of the special election. In submitting the
question to the voters of the territory proposed to be annexed
or included for their approval or rejection, the proposition
shall be expressed on the ballots substantially in the following terms:
"Enlargement of the port of . . . . . ., yes." (Giving then
[the] name of the port district which it is proposed to
enlarge);
"Enlargement of the port of . . . . . ., no." (Giving the
name of the port district which it is proposed to enlarge).
Such election, whether general or special, shall be held
in each precinct wholly or partially embraced within the limits of the territory proposed to be annexed or included and
shall be conducted and the votes cast thereat counted, canvassed, and the returns thereof made in the manner provided
by law for holding general or special county elections. [1990
c 259 § 16; 1935 c 16 § 1; 1921 c 130 § 1; RRS § 9707. Formerly RCW 53.04.080 and 53.04.090.]
[Title 53 RCW—page 3]
53.04.085
Title 53 RCW: Port Districts
*Reviser's note: RCW 29.13.010 and 29.13.020 were recodified as
RCW 29A.04.320 and 29A.04.330, respectively, pursuant to 2003 c 111 §
2401, effective July 1, 2004. RCW 29A.04.320 was subsequently repealed
by 2004 c 271 § 193.
Elections: Title 29A RCW.
53.04.085
53.04.085 Petition for annexation to port district. If
an area, not currently part of an existing port district desires
to be annexed to a port district in the same county, upon
receipt of a petition bearing the names of ten percent of the
registered voters residing within the proposed boundaries of
the area desiring to be annexed who voted in the last general
municipal election, the commissioners of such port district
shall petition the county legislative authority to annex such
territory, as provided in RCW 53.04.080. [1990 c 259 § 17;
1971 ex.s. c 157 § 2.]
Effective date—1971 ex.s. c 157: See note following RCW 53.04.020.
53.04.100
53.04.100 Order of annexation—Liability of area
annexed. If a majority of all the votes cast at any such election upon the proposition of enlarging such port district shall
be for the "Enlargement of the port of . . . . . ., yes" then and
in that event the board of county commissioners shall enter an
order declaring such port district enlarged so as to embrace
within the limits thereof the territory described in the petition
for such election, and thereupon the boundaries of said port
district shall be so enlarged and the commissioners thereof
shall have jurisdiction over the whole of said district as
enlarged to the same extent, and with like power and authority, as though the additional territory had been originally
embraced within the boundaries of the existing port district:
PROVIDED, HOWEVER, That none of the lands or property
embraced within the territory added to and incorporated
within such port district shall be liable to assessment for the
payment of any outstanding bonds, warrants or other indebtedness of such original port district, but such outstanding
bonds, warrants or other indebtedness, together with interest
thereon, shall be paid exclusively from assessments levied
and collected on the lands and property embraced within the
boundaries of the preexisting port district. [1921 c 130 § 2;
RRS § 9708.]
53.04.110
53.04.110 Change of name. Any port district now
existing or which may hereafter be organized under the laws
of the state of Washington is hereby authorized to change its
corporate name under the following conditions and in the following manner:
(1) On presentation, at least forty-five days before any
general port election to be held in the port district, of a petition to the commissioners of any port district now existing or
which may hereafter be established under the laws of the state
of Washington, signed by at least ten percent of the total
number of voters of the port district who voted at the last general port election and asking that the corporate name of the
port district be changed, it shall be the duty of the commissioners to submit to the voters of the port district the proposition as to whether the corporate name of the port shall be
changed. The proposition shall be submitted at the next general port election.
[Title 53 RCW—page 4]
(2) The petition shall contain the present corporate name
of the port district and the corporate name which is proposed
to be given to the port district.
(3) On submitting the proposition to the voters of the
port district it shall be the duty of the port commissioners to
cause to be printed on the official ballot used at the election
the following proposition:
"Shall the corporate name, 'Port of . . . . . .' be
changed to 'Port of . . . . . . . . .' . . . . . . . . . . . . . YES
"Shall the corporate name, 'Port of . . . . . .' be
changed to 'Port of . . . . . . . . .' . . . . . . . . . . . . . .NO"
(4) At the time when the returns of the general election
shall be canvassed by the commissioners of the port district,
it shall be the duty of the commissioners to canvass the vote
upon the proposition so submitted, recording in their record
the result of the canvass.
(5) Should a majority of the registered voters of the port
district voting at the general port election vote in favor of the
proposition it shall be the duty of the port commissioners to
certify the fact to the auditor of the county in which the port
district shall be situated and to the secretary of state of the
state of Washington, under the seal of the port district. On
and after the filing of the certificate with the county auditor as
aforesaid and with the secretary of state of the state of Washington, the corporate name of the port district shall be
changed, and thenceforth the port district shall be known and
designated in accordance therewith. [1998 c 240 § 1; 1990 c
259 § 18; 1929 c 140 § 1; RRS § 9689-1.]
53.04.120
53.04.120 Transfer of port district property to adjacent district—Procedure—Boundary changes—Jurisdiction. Property may be acquired and owned by any port district, at least one boundary of which property is contiguous to
or within one-quarter air mile of such port district and is also
located in an adjacent port district, and such property may be
transferred to the owning port district upon unanimous resolution of the boards of commissioners of both port districts
authorizing the same. The resolution of the port district
within which such property is located shall be a resolution to
permit the acquisition and to make the transfer, while the resolution of the port district which owns the property shall be a
resolution to acquire and own the property and to accept the
transferred property. Upon the filing of both official resolutions with the legislative authority and the auditor of the
county or counties within which such port districts lie,
together with maps showing in reasonable detail the boundary changes made, such acquisition and ownership shall be
lawful and such transfer shall be effective and the commissioners of the port district acquiring, owning and receiving
such property shall have jurisdiction over the whole of said
enlarged port district to the same extent, and with like power
and authority, as though the additional territory had been
owned by and originally embraced within the boundaries of
the port district. [1979 c 72 § 1; 1977 ex.s. c 91 § 1.]
Validity—Ratification—1979 c 72: "Any purchase or other acquisition of such property by any port district which occurred prior to the enactment of this 1979 amendatory act is hereby confirmed and ratified and shall
not be deemed to have been ultra vires." [1979 c 72 § 2.]
Severability—1979 c 72: "If any provision of this 1979 amendatory act
or its application to any person or circumstance is held invalid, the remainder
(2004 Ed.)
Coordination of Administrative Programs and Operations
of the act or the application of the provision to other persons or circumstances is not affected." [1979 c 72 § 4.]
53.04.150
53.04.150 Alternative annexation methods—Petition
for resolution—Districts authorized to use—Petition
requirements. A port district that is less than county-wide,
and that is located in a county with a population of less than
ninety thousand and located in either the Interstate 5 or Interstate 90 corridor, may petition for annexation of an area that
is contiguous to its boundaries, is not located within the
boundaries of any other port district, and contains no registered voters. The petition must be in writing, addressed to and
filed with the port commission, and signed by the owners of
not less than seventy-five percent of the property value in the
area to be annexed, according to the assessed value for general taxation. The petition must contain a legal description of
the property according to government legal subdivisions or
legal plats, or a sufficient metes and bounds description, and
must be accompanied by a plat outlining the boundaries of
the property to be annexed. [2000 c 200 § 2; 1999 c 250 § 2.]
Intent—1999 c 250 §§ 2-5: "The legislature intends annexation procedures set forth in sections 2 through 5 of this act to be alternative methods
available to port districts that are less than county-wide. The legislature does
not intend the alternative procedures to supersede any other method authorized by chapter 53.04 RCW or other law for annexation of territory to a port
district." [1999 c 250 § 1.]
53.04.160
53.04.160 Alternative annexation methods—Petition
for resolution—Where filed—Commission's duties. If a
petition meeting the requirements set forth in RCW
53.04.150 is filed with the commission, the commission shall
determine a date, time, and location for a hearing on the petition and shall provide public notice of that hearing and its
nature by publishing the notice in one issue of a newspaper of
general circulation in the district and by posting the notice in
three public places within the territory proposed for annexation. The commission may require proof of a petition's
authenticity before complying with notice requirements
imposed by this section and may require the signers of a petition to bear the costs of publishing and posting notice. [1999
c 250 § 3.]
Intent—1999 c 250 §§ 2-5: See note following RCW 53.04.150.
county-wide, and that is located in a county with a population
of less than ninety thousand and located in either the Interstate 5 or Interstate 90 corridor, may annex, for industrial
development or other port district purposes, property contiguous to the district's boundaries and not located within the
boundaries of any other port district.
(2) The written consent required by subsection (1) of this
section must contain a full and correct legal description of the
property to be annexed, must include the signature of all
owners of the property to be annexed, and must be addressed
to and filed with the commission.
(3) If the commission approves annexation under this
section, it shall do so by resolution and shall file a certified
copy of the resolution with the board of county commissioners of the county in which the annexed property is located.
Upon the date fixed in the resolution, the area annexed
becomes part of the district. [2000 c 200 § 1; 1999 c 250 § 5.]
Intent—1999 c 250 §§ 2-5: See note following RCW 53.04.150.
53.04.190
53.04.190 Alternative annexation methods—Outstanding indebtedness. No property within the territory
annexed under RCW 53.04.150 through 53.04.180 may be
taxed or assessed for the payment of any outstanding indebtedness of the port district as it existed before the annexation
unless another law requires the tax or assessment. [1999 c
250 § 6.]
Chapter 53.06 RCW
COORDINATION OF ADMINISTRATIVE
PROGRAMS AND OPERATIONS
Chapter 53.06
Sections
53.06.010
53.06.020
53.06.030
53.06.040
53.06.050
53.06.060
53.06.070
53.06.080
53.04.170
53.04.170 Alternative annexation methods—Petition
for resolution—Hearing—Resolution. At the hearing, the
commission may determine to annex all or any portion of the
proposed area described in the petition. Following the hearing, the commission shall by resolution approve or disapprove annexation. Upon passage of the resolution, the commission shall file, with the board of county commissioners of
the county in which the annexed property is located, a certified copy of the resolution. On the date fixed in the resolution, the area annexed becomes part of the district. [1999 c
250 § 4.]
Intent—1999 c 250 §§ 2-5: See note following RCW 53.04.150.
53.04.180
53.04.180 Alternative annexation methods—Annexation by written consent—Districts authorized to use—
Resolution. (1) By a majority vote of the commission, and
with the written consent of all the owners of the property to
be annexed, a port commission of a district that is less than
(2004 Ed.)
53.06.020
53.06.090
Declaration of necessity.
Actions required of commissions—Joint reports to governor
and legislature.
Washington public ports association as coordinating agency—
Purposes, powers, and duties.
Dues and assessments may be paid association from district
funds—Limitation on amount.
Further action by commissions authorized—Meetings.
Financial records of association and any nonprofit corporation
utilized by port districts subject to audit by state auditor.
Federation of Washington ports authorized—Purposes.
Implementation of economic development programs—Use of
nonprofit corporations—Transfer of funds.
Nonprofit corporations—Legislative recognition.
53.06.010
53.06.010 Declaration of necessity. The necessity and
desirability of coordinating the administration programs and
operations of all the port districts in this state is recognized
and declared as a matter of legislative determination. [1961 c
31 § 1.]
53.06.020
53.06.020 Actions required of commissions—Joint
reports to governor and legislature. It shall be the duty of
the port district commissions in the state to take such action
to effect the coordination of the administrative programs and
operations of each port district in the state and to submit to
the governor and the legislature biennially a joint report or
joint reports containing the recommendations for procedural
changes which would increase the efficiency of the respective port districts. [1994 c 75 § 1; 1989 c 425 § 3; 1961 c 31
§ 2.]
[Title 53 RCW—page 5]
53.06.030
Title 53 RCW: Port Districts
Findings—Severability—1989 c 425: See notes following RCW
53.06.070.
53.06.030
53.06.030 Washington public ports association as
coordinating agency—Purposes, powers, and duties. The
port district commissions in this state are empowered to designate the Washington public ports association as a coordinating agency through which the duties imposed by RCW
53.06.020 may be performed, harmonized or correlated. The
purposes of the Washington public ports association shall be:
(1) To initiate and carry on the necessary studies, investigations and surveys required for the proper development
and improvement of the commerce and business generally
common to all port districts, and to assemble and analyze the
data thus obtained and to cooperate with the state of Washington, port districts both within and without the state of
Washington, and other operators of terminal and transportation facilities for this purpose, and to make such expenditures
as are necessary for these purposes, including the proper promotion and advertising of all such properties, utilities and
facilities;
(2) To establish coordinating and joint marketing bodies
comprised of association members, including but not limited
to establishment of a federation of Washington ports as
described in RCW 53.06.070, as may be necessary to provide
effective and efficient marketing of the state's trade, tourism,
and travel resources;
(3) To exchange information relative to port construction, maintenance, operation, administration and management;
(4) To promote and encourage port development along
sound economic lines;
(5) To promote and encourage the development of transportation, commerce and industry;
(6) To operate as a clearing house for information, public
relations and liaison for the port districts of the state and to
serve as a channel for cooperation among the various port
districts and for the assembly and presentation of information
relating to the needs and requirements of port districts to the
public. [1989 c 425 § 4; 1961 c 31 § 3.]
Findings—Severability—1989 c 425: See notes following RCW
53.06.070.
53.06.040
53.06.040 Dues and assessments may be paid association from district funds—Limitation on amount. Each
port district which designates the Washington public ports
association as the agency through which the duties imposed
by RCW 53.06.020 may be executed is authorized to pay
dues and/or assessments to said association from port district
funds in any calendar year in an amount not exceeding a sum
equal to the amount which would be raised by a levy of one
cent per thousand dollars of assessed value against the taxable property within the port district. [1973 1st ex.s. c 195 §
55; 1970 ex.s. c 47 § 3; 1961 c 31 § 4.]
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
53.06.050
53.06.050 Further action by commissions authorized—Meetings. The port district commissions are authorized to take such further action as they deem necessary to
comply with the intent of this chapter, including the atten[Title 53 RCW—page 6]
dance at state and district meetings which may be required to
formulate the reports provided for in RCW 53.06.020. [1961
c 31 § 5.]
53.06.060 Financial records of association and any
nonprofit corporation utilized by port districts subject to
audit by state auditor. The financial records of the Washington public ports association shall be subject to audit by the
state auditor. The financial records of any nonprofit corporation utilized by port districts shall be subject to audit by the
state auditor to determine compliance with the contractual
terms and conditions under which payments or reimbursements are received under chapter 53.06 RCW. [2000 c 198 §
4; 1995 c 301 § 74; 1961 c 31 § 6.]
53.06.060
53.06.070
53.06.070 Federation of Washington ports authorized—Purposes. The Washington public ports association
is authorized to create a federation of Washington ports to
enable member ports to strengthen their international trading
capabilities and market the region's products worldwide.
Such a federation shall maintain the authority of individual
ports and have the following purposes:
(1) To operate as an export trading company under the
provisions enumerated in chapter 53.31 RCW;
(2) To provide a network to market the services of the
members of the Washington public ports association;
(3) To provide expertise and assistance to businesses
interested in export markets;
(4) To promote cooperative efforts between ports and
local associate development organizations to assist local economic development efforts and build local capacity; and
(5) To assist in the efficient marketing of the state's trade,
tourism, and travel resources. [1994 c 75 § 2; 1989 c 425 §
2.]
Findings—1989 c 425: "The legislature finds: (1) That the continuous
development of Washington's ports should be a long-term goal for the state
of Washington; (2) that Washington's ports are a valuable economic development resource, whose strength as a combined, coordinated entity for the
purpose of trade and tourism development would far exceed their individual
strength's in those areas; and (3) that, therefore, the ports should work
together as a federation, coordinating their efforts further still with other
public entities as well as the private sector.
The legislature concurs with the 1989 report of the economic development board on a long-term economic development strategy for Washington
state as follows: (a) Competition for tourism dollars, as well as dollars to
purchase Washington's goods and services, is global in nature and to compete, the state must identify its unique market niches, and market its trade,
travel, and tourism assets aggressively; (b) the ports of the state of Washington are an integral part of the technological and physical infrastructure
needed to help the state compete in the international marketplace; and (c)
links among public agencies, associate development organizations, including ports, universities, and industry-oriented organizations must be strengthened in an effort to improve coordination, prevent duplication, and build
local capacity." [1989 c 425 § 1.]
Severability—1989 c 425: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1989 c 425 § 12.]
53.06.080 Implementation of economic development
programs—Use of nonprofit corporations—Transfer of
funds. Port districts are authorized to utilize the services of a
nonprofit corporation for the purposes of providing training,
education, and general improvement to the public sector
management skills necessary to implement the economic
53.06.080
(2004 Ed.)
Powers
development programs of port districts. Actions taken under
this section must be implemented pursuant to the powers
granted in chapter 39.84 RCW. Any nonprofit corporation
utilized pursuant to this section must be a tax exempt nonprofit corporation, may be a nonprofit corporation created by
the Washington public ports association, and must be created
for the sole purposes of education and training for port district officials and employees. Port districts are authorized to
transfer to a qualified nonprofit corporation utilized pursuant
to this section any funds received from an industrial development corporation created by a port district under RCW
39.84.130.
Nothing in this section shall be construed to prohibit the
receipt of additional public or private funds by a nonprofit
corporation established under this section. The coordination
of these programs and the transfers and expenditures of funds
shall be deemed to be for industrial development and trade
promotion as provided for in Article VIII, section 8 of the
Washington state Constitution. [2000 c 198 § 1.]
53.06.090
53.06.090 Nonprofit corporations—Legislative recognition. In carrying out the purposes described in this and
other chapters of this title, the legislature recognizes that any
nonprofit corporation created or re-created for the purposes
of this chapter, is a private nonprofit corporation contracting
to provide services to which port districts may subscribe.
[2000 c 198 § 3.]
Chapter 53.08
Chapter 53.08 RCW
POWERS
53.08.005
53.08.170
53.08.171
53.08.175
53.08.176
53.08.180
53.08.190
53.08.200
53.08.205
53.08.207
53.08.208
53.08.210
53.08.220
53.08.230
53.08.240
53.08.245
53.08.250
53.08.255
53.08.260
53.08.270
53.08.280
53.08.290
53.08.295
53.08.300
53.08.310
53.08.320
53.08.330
53.08.340
53.08.350
Sections
53.08.005
53.08.010
53.08.015
53.08.020
53.08.030
53.08.040
53.08.041
53.08.043
53.08.045
53.08.047
53.08.049
53.08.050
53.08.055
53.08.060
53.08.070
53.08.080
53.08.085
53.08.090
53.08.091
53.08.092
53.08.110
53.08.120
53.08.130
53.08.135
53.08.140
53.08.145
53.08.150
53.08.160
(2004 Ed.)
Definitions.
Acquisition of property—Levy of assessments.
Exemption of farm and agricultural land from special benefit
assessments.
Acquisition and operation of facilities.
Operation of foreign trade zones.
Improvement of lands for industrial and commercial purposes—Providing sewer and water utilities—Providing pollution control facilities.
Pollution control facilities or other industrial development
actions—Validation—Implementation of Article 8, section 8
of the Constitution.
Powers relative to systems of sewerage.
Facilities constructed under authority of chapter subject to taxation of leasehold interest.
Chapter not to be construed as restricting or limiting powers of
district under other laws.
Community revitalization financing—Public improvements.
Local improvement districts—Assessments—Bonds.
Local improvement districts—Notice must contain statement
that assessments may vary from estimates.
Improvement of waters and waterways.
Rates and charges—Government contracts.
Lease of property—Authorized—Duration.
Lease of property—Security for rent.
Sale of property.
Sale of property—Contract sales—Terms and conditions.
Sale of property—Taxes and assessments against property
sold by contract.
Gifts—Improvement.
Contracts for labor and material—Small works roster.
Notice—Award of contract—Low bidder claiming error.
Construction projects over forty thousand dollars—Contracting out.
Leases or contracts without bond.
Insurance—Determination of risks, hazards, liabilities—
Acquisition of appropriate insurance.
Notices when no newspaper in county.
Studies, investigations, surveys—Promotion of facilities.
53.08.360
53.08.370
53.08.380
53.08.390
53.08.400
53.08.410
53.08.420
53.08.430
Employment—Wages—Benefits—Agents—Insurance for
port district commissioners.
Employment relations—Collective bargaining and arbitration.
Commissioners, officers, and employees—Reimbursement of
expenses.
Commissioners, officers, and employees—Regulation of
expenses.
Federal old age and survivors' insurance for employees.
Federal old age and survivors' insurance for employees—Plan
for extension of benefits.
Federal old age and survivors' insurance for employees—Contributions.
Liability insurance for officials and employees.
Liability insurance for officers and employees authorized.
Actions against officer, employee, or agent—Defense and
costs provided by port district—Exception.
Quorum.
Regulations authorized—Adoption as part of ordinance or resolution of city or county, procedure—Enforcement—Penalty for violation.
Making motor vehicle and other police regulations applicable
to district property—Filing plat with county auditor—Duty
of law enforcement officers.
Joint exercise of powers and joint acquisition of property—
Contracts with other governmental entities.
Economic development programs authorized.
Participation in world fairs or expositions authorized.
Tourism promotion authorized.
Park and recreation facilities.
Park and recreation facilities—Approval of other agencies.
Police officers—Appointment authorized—Jurisdiction.
Intermodal movement of interstate and foreign cargo—
Restrictions.
Passenger carrying watercraft.
Rewards for arrest and conviction of persons committing criminal offenses against port district authorized.
Moorage facilities—Definitions.
Moorage facilities—Rules authorized—Port charges, delinquency—Abandoned vessels, public sale.
Streets, roads, and highways—Construction, upgrading,
improvement, and repair authorized.
Streets, roads, and highways—Expenditure of funds.
Moratorium on runway construction or extension, or initiation
of new service—Certain counties affected.
Annexation of port district property—Transfer of employees
engaged in fire fighting.
Telecommunications facilities—Construct, purchase, acquire,
etc.—Purposes—Limitations—Eminent domain.
Wholesale telecommunications services—Petition for review
of rates, terms, conditions.
Grays Harbor pilotage district—Conditions on pilotage service.
District may exercise powers of community renewal agency.
Abandoned or derelict vessels.
Cooperative watershed management.
Provision of consulting services—Limitations.
Acquisition of vacated waterways: RCW 79.93.060.
Actions by and against public corporations: RCW 4.08.110 and 4.08.120.
Airport zoning: Chapter 14.12 RCW.
Deferral of special assessments: Chapter 84.38 RCW.
Emergency public works: Chapter 39.28 RCW.
Heating systems authorized: RCW 35.97.020.
Industrial development revenue bonds: Chapter 39.84 RCW.
Lien for labor and materials on public works: Chapter 60.28 RCW.
Municipal airports: Chapters 14.07 and 14.08 RCW.
Permits to use waterways within a port district: RCW 79.93.040.
Public contracts: Chapters 39.04 through 39.32 RCW.
Special purpose districts, expenditures to recruit job candidates: RCW
42.24.170.
53.08.005
53.08.005 Definitions. The definitions in this section
apply throughout this chapter unless the context clearly
requires otherwise.
(1) "Commission" means the Washington utilities and
transportation commission.
[Title 53 RCW—page 7]
53.08.010
Title 53 RCW: Port Districts
(2) "Rural port district" means a port district formed
under chapter 53.04 RCW and located in a county with an
average population density of fewer than one hundred persons per square mile.
(3) "Telecommunications" has the same meaning as contained in RCW 80.04.010.
(4) "Telecommunications facilities" means lines, conduits, ducts, poles, wires, cables, crossarms, receivers, transmitters, instruments, machines, appliances, instrumentalities
and all devices, real estate, easements, apparatus, property,
and routes used, operated, owned, or controlled by any entity
to facilitate the provision of telecommunications services.
(5) "Wholesale telecommunications services" means the
provision of telecommunications services or facilities for
resale by an entity authorized to provide telecommunications
services to the general public and internet service providers.
[2000 c 81 § 6.]
Findings—2000 c 81: "The legislature makes the following findings:
(1) Access to telecommunications facilities and services is essential to
the economic well-being of both rural and urban areas.
(2) Many persons and entities, particularly in rural areas, do not have
adequate access to telecommunications facilities and services.
(3) Public utility districts and rural port districts may be well-positioned to construct and operate telecommunications facilities." [2000 c 81 §
1.]
53.08.010 Acquisition of property—Levy of assessments. A port district may acquire by purchase, for cash or
on deferred payments for a period not exceeding twenty
years, or by condemnation, or both, all lands, property, property rights, leases, or easements necessary for its purposes
and may exercise the right of eminent domain in the acquirement or damaging of all such lands, property, and property
rights, and may levy and collect assessments upon property
for the payment of all damages and compensation in carrying
out its purposes, and such right shall be exercised in the same
manner and by the same procedure as provided for cities of
the first class insofar as consistent with this title, and in connection therewith the county treasurer shall perform the
duties of the treasurers of such cities. [1983 c 24 § 1; 1955 c
65 § 2. Prior: 1953 c 171 § 1; 1943 c 166 § 2, part; 1921 c 183
§ 1, part; 1917 c 125 § 1, part; 1913 c 62 § 4, part; 1911 c 92
§ 4, part; Rem. Supp. 1943 § 9692, part.]
53.08.010
Eminent domain: State Constitution Art. 1 § 16 (Amendment 9).
Eminent domain by cities: Chapter 8.12 RCW.
53.08.015 Exemption of farm and agricultural land
from special benefit assessments. See RCW 84.34.300
through 84.34.380 and 84.34.922.
53.08.015
53.08.020 Acquisition and operation of facilities. A
port district may construct, condemn, purchase, acquire, add
to, maintain, conduct, and operate sea walls, jetties, piers,
wharves, docks, boat landings, and other harbor improvements, warehouses, storehouses, elevators, grain-bins, cold
storage plants, terminal icing plants, bunkers, oil tanks, ferries, canals, locks, tidal basins, bridges, subways, tramways,
cableways, conveyors, administration buildings, fishing terminals, together with modern appliances and buildings for
the economical handling, packaging, storing, and transporting of freight and handling of passenger traffic, rail and
motor vehicle transfer and terminal facilities, water transfer
53.08.020
[Title 53 RCW—page 8]
and terminal facilities, air transfer and terminal facilities, and
any combination of such transfer and terminal facilities, commercial transportation, transfer, handling, storage and terminal facilities, and improvements relating to industrial and
manufacturing activities within the district, and in connection
with the operation of the facilities and improvements of the
district, it may perform all customary services including the
handling, weighing, measuring and reconditioning of all
commodities received. A port district may also construct,
condemn, purchase, acquire, add to and maintain facilities for
the freezing or processing of goods, agricultural products,
meats or perishable commodities. A port district may also
construct, purchase and operate belt line railways, but shall
not acquire the same by condemnation. [1963 c 147 § 3;
1961 c 126 § 1; 1955 c 65 § 3. Prior: 1953 c 171 § 2; 1943 c
166 § 2, part; 1921 c 183 § 1, part; 1917 c 125 § 1, part; 1913
c 62 § 4, part; 1911 c 92 § 4, part; Rem. Supp. 1943 § 9692,
part.]
Severability—1961 c 126: "If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act,
or the application of the provision to other persons or circumstances is not
affected." [1961 c 126 § 2.]
Essential rail assistance account, distribution of moneys to port districts:
RCW 47.76.250.
53.08.030
53.08.030 Operation of foreign trade zones. A district
may apply to the United States for permission to establish,
operate, and maintain foreign trade zones within the district:
PROVIDED, That nothing herein shall be construed to prevent such zones from being operated and financed by a private corporation(s) on behalf of such district acting as zone
sponsor: PROVIDED FURTHER, That when the money so
raised is to be used exclusively for the purpose of acquiring
land for sites and constructing warehouses, storage plants,
and other facilities to be constructed within the zone for use
in the operation and maintenance of the zones, the district
may contract indebtedness and issue general bonds therefor
in an amount, in addition to the three-fourths of one percent
hereinafter fixed, of one percent of the value of the taxable
property in the district, as the term "value of the taxable property" is defined in RCW 39.36.015, such additional indebtedness only to be incurred with the assent of three-fifths of the
voters of the district voting thereon. [1977 ex.s. c 196 § 7;
1970 ex.s. c 42 § 31; 1955 c 65 § 4. Prior: 1943 c 166 § 2,
part; 1921 c 183 § 1, part; 1917 c 125 § 1, part; 1913 c 62 § 4,
part; 1911 c 92 § 4, part; Rem. Supp. 1943 § 9692, part.]
Effective date—1977 ex.s. c 196: See note following RCW 24.46.010.
Severability—Effective date—1970 ex.s. c 42: See notes following
RCW 39.36.015.
Foreign trade zones: Chapter 24.46 RCW.
53.08.040
53.08.040 Improvement of lands for industrial and
commercial purposes—Providing sewer and water utilities—Providing pollution control facilities. A district may
improve its lands by dredging, filling, bulkheading, providing waterways or otherwise developing such lands for industrial and commercial purposes. A district may also acquire,
construct, install, improve, and operate sewer and water utilities to serve its own property and other property owners
under terms, conditions, and rates to be fixed and approved
by the port commission. A district may also acquire, by pur(2004 Ed.)
Powers
chase, construction, lease, or in any other manner, and may
maintain and operate other facilities for the control or elimination of air, water, or other pollution, including, but not limited to, facilities for the treatment and/or disposal of industrial wastes, and may make such facilities available to others
under terms, conditions and rates to be fixed and approved by
the port commission. Such conditions and rates shall be sufficient to reimburse the port for all costs, including reasonable amortization of capital outlays caused by or incidental to
providing such other pollution control facilities: PROVIDED, That no part of such costs of providing any pollution
control facility to others shall be paid out of any tax revenues
of the port: AND PROVIDED FURTHER, That no port shall
enter into an agreement or contract to provide sewer and/or
water utilities or pollution control facilities if substantially
similar utilities or facilities are available from another source
(or sources) which is able and willing to provide such utilities
or facilities on a reasonable and nondiscriminatory basis
unless such other source (or sources) consents thereto.
In the event that a port elects to make such other pollution control facilities available to others, it shall do so by
lease, lease purchase agreement, or other agreement binding
such user to pay for the use of said facilities for the full term
of the revenue bonds issued by the port for the acquisition of
said facilities, and said payments shall at least fully reimburse
the port for all principal and interest paid by it on said bonds
and for all operating or other costs, if any, incurred by the
port in connection with said facilities: PROVIDED, HOWEVER, That where there is more than one user of any such
facilities, each user shall be responsible for its pro rata share
of such costs and payment of principal and interest. Any port
intending to provide pollution control facilities to others shall
first survey the port district to ascertain the potential users of
such facilities and the extent of their needs. The port shall
conduct a public hearing upon the proposal and shall give
each potential user an opportunity to participate in the use of
such facilities upon equal terms and conditions. [1989 c 298
§ 1; 1972 ex.s. c 54 § 1; 1967 c 131 § 1; 1955 c 65 § 5. Prior:
1943 c 166 § 2, part; 1921 c 183 § 1, part; 1917 c 125 § 1,
part; 1913 c 62 § 4, part; 1911 c 92 § 4, part; Rem. Supp. 1943
§ 9692, part.]
53.08.050
trol facilities or other industrial development are hereby
found and declared to be legislation implementing the provisions of Article 8, section 8 of the Washington state Constitution. [1975 c 6 § 5.]
Severability—1975 c 6: See RCW 70.95A.940.
Construction—1975 c 6: See RCW 70.95A.912.
53.08.043
53.08.043 Powers relative to systems of sewerage. A
port district may exercise all the powers relating to systems of
sewerage authorized by RCW 35.67.010 and 35.67.020 for
cities and towns. [1997 c 447 § 15.]
Finding—Purpose—1997 c 447: See note following RCW 70.05.074.
53.08.045
53.08.045 Facilities constructed under authority of
chapter subject to taxation of leasehold interest. Facilities
constructed by a port district under authority of this chapter
will be subject to taxation of leasehold interest pursuant to
applicable laws as now or hereafter enacted. [1972 ex.s. c 54
§ 3.]
Severability—1972 ex.s. c 54: See note following RCW 53.08.040.
53.08.047
53.08.047 Chapter not to be construed as restricting
or limiting powers of district under other laws. Neither
this chapter nor anything herein contained shall be construed
as a restriction or limitation upon any powers which a district
might otherwise have under any laws of this state, but shall be
construed as cumulative. [1972 ex.s. c 54 § 4.]
Severability—1972 ex.s. c 54: See note following RCW 53.08.040.
53.08.049
53.08.049 Community revitalization financing—
Public improvements. In addition to other authority that a
port district possesses, a port district may provide any public
improvement as defined under RCW 39.89.020, but this additional authority is limited to participating in the financing of
the public improvements as provided under RCW 39.89.050.
This section does not limit the authority of a port district
to otherwise participate in the public improvements if that
authority exists elsewhere. [2001 c 212 § 18.]
Severability—2001 c 212: See RCW 39.89.902.
53.08.050
Severability—1972 ex.s. c 54: "If any provision of this 1972 amendatory act or the application thereof to any person or circumstance, is held
invalid, such invalidity shall not affect other provisions or applications of the
act which can be given effect without the invalid provision or application,
and to this end the provisions of this 1972 amendatory act are declared to be
severable." [1972 ex.s. c 54 § 5.]
Assessments and charges against state lands: Chapter 79.44 RCW.
53.08.041
53.08.041 Pollution control facilities or other industrial development actions—Validation—Implementation
of Article 8, section 8 of the Constitution. All actions heretofore taken by port districts in conformity with the provisions of this chapter, and the provisions of chapter 6, Laws of
1975 hereby made applicable thereto, relating to pollution
control facilities or other industrial development, including,
but not limited to, all bonds issued for such purposes, shall be
deemed to have been taken pursuant to Article 8, section 8 of
the Washington state Constitution and are hereby declared to
be valid, legal and binding in all respects. All provisions of
Title 53 RCW directly or indirectly relating to pollution con(2004 Ed.)
53.08.050 Local improvement districts—Assessments—Bonds. (1) A district may establish local improvement districts within the district, and levy special assessments, in annual installments extending over a period not
exceeding ten years on all property specially benefited by the
local improvement, on the basis of special benefits, to pay in
whole or in part the damages or costs of the local improvement, and issue local improvement bonds to be paid from
local improvement assessments. The levy and collection of
such assessments and issuance of such bonds shall be as provided for the levy and collection of local improvement
assessments and the issuance of local improvement bonds by
cities and towns, insofar as consistent with this title: PROVIDED, That the duties of the treasurers of such cities and
towns in connection therewith shall be performed by the
county treasurer. Such bonds may be in any form, including
bearer bonds or registered bonds as provided in RCW
39.46.030.
(2) Notwithstanding subsection (1) of this section, such
bonds may be issued and sold in accordance with chapter
[Title 53 RCW—page 9]
53.08.055
Title 53 RCW: Port Districts
39.46 RCW. [1983 c 167 § 132; 1955 c 65 § 6. Prior: 1943
c 166 § 2, part; 1921 c 183 § 1, part; 1917 c 125 § 1, part;
1913 c 62 § 4, part; 1911 c 92 § 4, part; Rem. Supp. 1943 §
9692, part.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Assessments and charges against state lands: Chapter 79.44 RCW.
Cities
issuance of local improvement bonds: Chapter 35.45 RCW.
levy and collection of local improvement assessments: Chapters 35.44,
35.49 RCW.
Local improvements, supplemental authority: Chapter 35.51 RCW.
Public lands subject to local assessments: RCW 79.44.010.
53.08.055 Local improvement districts—Notice must
contain statement that assessments may vary from estimates. Any notice given to the public or to the owners of
specific lots, tracts, or parcels of land relating to the formation of a local improvement district shall contain a statement
that actual assessments may vary from assessment estimates
so long as they do not exceed a figure equal to the increased
true and fair value the improvement adds to the property.
[1989 c 243 § 8.]
53.08.055
purposes and upon such terms as the port commission deems
proper: PROVIDED, That no lease shall be for a period
longer than fifty years with option for extensions for up to an
additional thirty years, except where the property involved is
or is to be devoted to airport purposes the port commission
may lease said property for such period as may equal the estimated useful life of such work or facilities, but not to exceed
seventy-five years: PROVIDED FURTHER, That where the
property is held by the district under lease from the United
States government or the state of Washington, or any agency
or department thereof, the port commission may sublease
said property, with option for extensions, up to the total term
and extensions thereof permitted by such lease, but in any
event not to exceed ninety years. [1989 c 298 § 2; 1983 c 64
§ 1; 1973 c 87 § 1; 1961 ex.s. c 8 § 1; 1959 c 157 § 1; 1955 c
65 § 9. Prior: 1953 c 243 § 1; 1943 c 166 § 2, part; 1921 c 183
§ 1, part; 1917 c 125 § 1, part; 1913 c 62 § 4, part; 1911 c 92
§ 4, part; Rem. Supp. 1943 § 9692, part.]
Lease of
county property for airport purposes: RCW 36.34.180.
municipal property for airport purposes: RCW 14.08.120.
Restrictions on leases of harbor areas: State Constitution Art. 15 § 2.
53.08.085
53.08.060 Improvement of waters and waterways. A
district may improve navigable and nonnavigable waters of
the United States and the state of Washington within the district; create and improve for harbor purposes new waterways
within the district; and regulate and control all such waters
and all natural or artificial waterways within the district and
remove obstructions therefrom, and straighten, widen,
deepen, and otherwise improve any water, watercourses,
bays, lakes or streams, whether navigable or otherwise, flowing through or located within the district. [1979 ex.s. c 30 §
8; 1955 c 65 § 7. Prior: 1943 c 171 § 1; 1943 c 166 § 2, part;
1921 c 183 § 1, part; 1917 c 125 § 1, part; 1913 c 62 § 4, part;
1911 c 92 § 4, part; Rem. Supp. 1943 § 9692, part.]
53.08.060
53.08.070 Rates and charges—Government contracts. A district may fix, without right of appeal therefrom
the rates of wharfage, dockage, warehousing, and port and
terminal charges upon all improvements owned and operated
by it, and the charges of ferries operated by it.
It may fix, subject to state regulation, rates of wharfage,
dockage, warehousing, and all necessary port and terminal
charges upon all docks, wharves, warehouses, quays, and
piers owned by it and operated under lease from it.
Notwithstanding any provision of this section, a port district may enter into any contract for wharfage, dockage, warehousing, or port or terminal charges, with the United States or
any governmental agency thereof or with the state of Washington or any political subdivision thereof under such terms
as the commission may, in its discretion, negotiate. [1995 c
146 § 1; 1955 c 65 § 8. Prior: 1943 c 166 § 2, part; 1921 c 183
§ 1, part; 1917 c 125 § 1, part; 1913 c 62 § 4, part; 1911 c 92
§ 4, part; Rem. Supp. 1943 § 9692, part.]
53.08.070
Utilities and transportation commission: Chapter 80.01 RCW.
53.08.080
53.08.080 Lease of property—Authorized—Duration. A district may lease all lands, wharves, docks and real
and personal property owned and controlled by it, for such
[Title 53 RCW—page 10]
53.08.085 Lease of property—Security for rent.
Every lease of all lands, wharves, docks, and real and personal property of a port district for a term of more than one
year shall have the rent secured by rental insurance, bond, or
other security satisfactory to the port commission, in an
amount equal to one-sixth the total rent, but in no case shall
such security be less than an amount equal to one year's rent
or more than an amount equal to three years' rent. Evidence of
the existence of such insurance, bonds, or security shall be on
file with the commission at all times during the term of the
lease: PROVIDED, That nothing in this section shall prevent
the port commission from requiring additional security on
leases or provisions thereof, or on other agreements to use
port facilities: PROVIDED FURTHER, That any security
agreement may provide for termination on the anniversary
date of such agreement on not less than one year's written
notice to the port if said lease is not in default at the time of
said notice: PROVIDED FURTHER, That if the security as
required herein is not maintained throughout the full term of
the lease, said lease shall be considered in default: PROVIDED, HOWEVER, That the port commission may in its
discretion waive the rent security requirement or lower the
amount of such requirement on the lease of real and/or personal port property. [1981 c 125 § 1; 1977 c 41 § 1; 1973 c
87 § 2.]
53.08.090
53.08.090 Sale of property. (1) A port commission
may, by resolution, authorize the managing official of a port
district to sell and convey port district property of ten thousand dollars or less in value. The authority shall be in force
for not more than one calendar year from the date of resolution and may be renewed from year to year. Prior to any such
sale or conveyance the managing official shall itemize and
list the property to be sold and make written certification to
the commission that the listed property is no longer needed
for district purposes. Any large block of the property having
a value in excess of ten thousand dollars shall not be broken
down into components of ten thousand dollars or less value
(2004 Ed.)
Powers
and sold in the smaller components unless the smaller components be sold by public competitive bid. A port district may
sell and convey any of its real or personal property valued at
more than ten thousand dollars when the port commission
has, by resolution, declared the property to be no longer
needed for district purposes, but no property which is a part
of the comprehensive plan of improvement or modification
thereof shall be disposed of until the comprehensive plan has
been modified to find the property surplus to port needs. The
comprehensive plan shall be modified only after public
notice and hearing provided by RCW 53.20.010.
Nothing in this section shall be deemed to repeal or modify procedures for property sales within industrial development districts as set forth in chapter 53.25 RCW.
(2) The ten thousand dollar figures in subsection (1) of
this section shall be adjusted annually based upon the governmental price index established by the department of revenue
under RCW 82.14.200. [1994 c 26 § 1; 1981 c 262 § 1; 1969
ex.s. c 30 § 1; 1965 c 23 § 1; 1955 c 65 § 10. Prior: 1943 c
166 § 2, part; 1921 c 183 § 1, part; 1917 c 125 § 1, part; 1913
c 62 § 4, part; 1911 c 92 § 4, part; Rem. Supp. 1943 § 9692,
part.]
Restriction on sale of harbor rights and property: State Constitution Art. 15
§ 1 (Amendment 15).
53.08.091
53.08.091 Sale of property—Contract sales—Terms
and conditions. Except in cases where the full purchase
price is paid at the time of the purchase, every sale of real
property or personal property under authority of RCW
53.08.090 or 53.25.110 shall be subject to the following
terms and conditions:
(1) The purchaser shall enter into a contract with the district in which the purchaser shall covenant that he will make
the payments of principal and interest when due, and that he
will pay all taxes and assessments on such property. Upon
failure to make payments of principal, interest, assessments
or taxes when due all rights of the purchaser under said contract may, at the election of the district, after notice to said
purchaser, be declared to be forfeited. When the rights of the
purchaser are declared forfeited, the district shall be released
from all obligation to convey land covered by the contract,
and in the case of personal property, the district shall have all
rights granted to a secured party under *chapter 62A.9 RCW;
(2) The district may, as it deems advisable, extend the
time for payment of principal and interest due or to become
due;
(3) The district shall notify the purchaser in each
instance when payment is overdue, and that the purchaser is
liable to forfeiture if payment is not made within thirty days
from the time the same became due, unless the time be
extended by the district;
(4) Not less than four percent of the total purchase price
shall be paid on the date of execution of the contract for sale
and not less than four percent shall be paid annually thereafter until the full purchase price has been paid, but any purchaser may make full payment at any time. All unpaid
deferred payments shall draw interest at a rate not less than
six percent per annum.
Nothing in this section shall be deemed to supersede
other provisions of law more specifically governing sales of
port district property. It is the purpose of this section to pro(2004 Ed.)
53.08.120
vide additional authority and procedures for sale of port district property no longer needed for port purposes. [1982 c 75
§ 1; 1969 ex.s. c 11 § 1; 1965 c 23 § 2.]
*Reviser's note: Chapter 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001. For later enactment, see chapter
62A.9A RCW.
53.08.092
53.08.092 Sale of property—Taxes and assessments
against property sold by contract. A copy of all contract
sales of port district property shall be filed with the county
assessor within thirty days after the first payment is received
by the port. The assessor shall place such property on the tax
rolls of the county and the purchaser of such property shall
become liable for all levies and assessments against such
property. The port shall not be liable for any taxes or assessments, but if any outstanding taxes are not paid the property
may be sold by the county as with other property with delinquent taxes due. Any amounts accruing from such a sale by
the county, not required to pay outstanding and delinquent
taxes or assessments and foreclosure costs, shall be paid to
the port district. [1965 c 23 § 3.]
53.08.110
53.08.110 Gifts—Improvement. Port commissioners
of any port district are hereby authorized to accept for and on
behalf of said port district gifts of real and personal property
and to expend in improvements and betterment such amount
as may be necessary. [1921 c 39 § 4; RRS § 9705.]
53.08.120
53.08.120 Contracts for labor and material—Small
works roster. All material required by a port district may be
procured in the open market or by contract and all work
ordered may be done by contract or day labor. All such contracts for work, the estimated cost of which exceeds two hundred thousand dollars, shall be let at public bidding upon
notice published in a newspaper of general circulation in the
district at least thirteen days before the last date upon which
bids will be received, calling for sealed bids upon the work,
plans and specifications for which shall then be on file in the
office of the commission for public inspection. The same
notice may call for bids on such work or material based upon
plans and specifications submitted by the bidder. The competitive bidding requirements for purchases or public works
may be waived pursuant to RCW 39.04.280 if an exemption
contained within that section applies to the purchase or public
work.
However, a port district may let contracts using the small
works roster process under RCW 39.04.155 in lieu of calling
for sealed bids. Whenever possible, the managing official
shall invite at least one proposal from a minority contractor
who shall otherwise qualify under this section.
When awarding such a contract for work, when utilizing
proposals from the small works roster, the managing official
shall give weight to the contractor submitting the lowest and
best proposal, and whenever it would not violate the public
interest, such contracts shall be distributed equally among
contractors, including minority contractors, on the small
works roster. [2000 c 138 § 210; 1999 c 29 § 1; 1998 c 278 §
6; 1993 c 198 § 13; 1988 c 235 § 1; 1982 c 92 § 1; 1975 1st
ex.s. c 47 § 1; 1955 c 348 § 2. Prior: 1921 c 179 § 1, part;
1911 c 92 § 5, part; RRS § 9693, part.]
[Title 53 RCW—page 11]
53.08.130
Title 53 RCW: Port Districts
Purpose—Part headings not law—2000 c 138: See notes following
RCW 39.04.155.
Severability—1955 c 348: "If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act,
or the application of the provision to other persons or circumstances is not
affected." [1955 c 348 § 7.]
its political subdivisions or with any municipal corporation or
quasi municipal corporation of the state of Washington, without requiring said port district or public bodies to provide
bonds to secure the performance thereof. All such leases or
contracts heretofore entered into are hereby ratified. [1943 c
136 § 1; Rem. Supp. 1943 § 9710.]
53.08.130
53.08.130 Notice—Award of contract—Low bidder
claiming error. The notice shall state generally the nature of
the work to be done and require that bids be sealed and filed
with the commission at a time specified therein. Each bid
shall be accompanied by a bid proposal deposit in the form of
a cashier's check, money order, or surety bid bond to the commission for a sum not less than five percent of the amount of
the bid, and no bid shall be considered unless accompanied
by such bid proposal deposit. At the time and place named the
bids shall be publicly opened and read and the commission
shall proceed to canvass the bids and, except as otherwise in
this section provided, shall let the contract to the lowest
responsible bidder upon plans and specifications on file, or to
the best bidder submitting his or her own plans and specifications. If, in the opinion of the commission, all bids are unsatisfactory, they may reject all of them and readvertise, and in
such case all such bid proposal deposits shall be returned to
the bidders; but if the contract is let, then all bid proposal
deposits shall be returned to the bidders, except that of the
successful bidder which shall be retained until a contract is
entered into for the purchase of such materials or doing such
work, and a bond given to the port district for the performance of the contract and otherwise conditioned as required
by law, with sureties satisfactory to the commission, in an
amount to be fixed by the commission, but not in any event
less than twenty-five percent of the contract price. If the bidder fails to enter into the contract in accordance with his or
her bid and furnish such bond within ten days from the date at
which he or she is notified that he or she is the successful bidder, the check or money order and the amount thereof shall be
forfeited to the port district or the port district shall recover
the amount of the surety bid bond. A low bidder who claims
error and fails to enter into a contract is prohibited from bidding on the same project if a second or subsequent call for
bids is made for the project. [1996 c 18 § 11; 1971 ex.s. c 258
§ 2; 1955 c 348 § 3. Prior: 1921 c 179 § 1, part; 1911 c 92 §
5, part; RRS § 9693, part.]
Severability—1971 ex.s. c 258: See note following RCW 28B.10.350.
Severability—1955 c 348: See note following RCW 53.08.120.
Contractor's bond: Chapter 39.08 RCW.
Lien on public works, retained percentage of contractor's earnings: Chapter
60.28 RCW.
53.08.135
53.08.135 Construction projects over forty thousand
dollars—Contracting out. Port districts shall determine if
any construction project over forty thousand dollars can be
accomplished less expensively by contracting out. If contracting out is less expensive, the port district may contract
out such project. [1982 c 92 § 2.]
53.08.140
53.08.140 Leases or contracts without bond. Port districts may enter into leases and contracts of every kind and
nature with the United States of America or any of its departments, the state of Washington or any of its departments, or
[Title 53 RCW—page 12]
53.08.145
53.08.145 Insurance—Determination of risks, hazards, liabilities—Acquisition of appropriate insurance.
(Expires December 31, 2006.) Each port district shall determine risks, hazards, and liabilities associated with facilities
and projects authorized under this chapter in order to obtain
insurance consistent with these determinations. This insurance may include any types of insurance covering, and for the
benefit of, one or more parties with whom the port district
contracts for any purpose, and insurance for the benefit of its
commissioners, commissions, and employees to insure
against liability for acts or omissions while performing or in
good faith purporting to perform their official duties. All
insurance obtained for port district projects may be acquired
by bid or by negotiation. In order to allow the port district
flexibility to secure appropriate insurance by negotiation, the
port district is exempt from RCW 48.30.270 for projects in
excess of one hundred million dollars. [2000 c 143 § 1.]
Expiration date—2000 c 143: "This act expires December 31, 2006."
[2000 c 143 § 3.]
53.08.150
53.08.150 Notices when no newspaper in county.
Notices required in port districts in which no newspaper is
published may be given by publication in any newspaper of
general circulation in the county. [1921 c 39 § 3; RRS §
9704.]
53.08.160
53.08.160 Studies, investigations, surveys—Promotion of facilities. All port districts organized under the provisions of this act shall be, and they are hereby, authorized
and empowered to initiate and carry on the necessary studies,
investigations and surveys required for the proper development, improvement and utilization of all port properties, utilities and facilities, and for industrial development within the
district when such agricultural and industrial development is
carried out by a public agency, institution, or body for a public purpose, and to assemble and analyze the data thus
obtained and to cooperate with the state of Washington, other
port districts and other operators of terminal and transportation facilities for these purposes, and to make such expenditures as are necessary for said purposes, and for the proper
promotion, advertising, improvement and development of
such port properties, utilities and facilities: PROVIDED
HOWEVER, That nothing in this section shall authorize a
port district to develop its properties as an agricultural or
dairy farm. [1973 1st ex.s. c 55 § 1; 1947 c 24 § 2; Rem.
Supp. 1947 § 9692A.]
53.08.170
53.08.170 Employment—Wages—Benefits—
Agents—Insurance for port district commissioners. The
port commission shall have authority to create and fill positions, to fix wages, salaries and bonds thereof, to pay costs
and assessments involved in securing or arranging to secure
employees, and to establish such benefits for employees,
(2004 Ed.)
Powers
including holiday pay, vacations or vacation pay, retirement
and pension benefits, medical, surgical or hospital care, life,
accident, or health disability insurance, and similar benefits,
already established by other employers of similar employees,
as the port commissioner shall by resolution provide: PROVIDED, That any district providing insurance benefits for its
employees in any manner whatsoever may provide health and
accident insurance, life insurance with coverage not to
exceed that provided district employees, and business related
travel, liability, and errors and omissions insurance, for its
commissioners, which insurance shall not be considered to be
compensation.
Subject to chapter 48.62 RCW, the port commission
shall have authority to provide or pay such benefits directly,
or to provide for such benefits by the purchase of insurance
policies or entering into contracts with and compensating any
person, firm, agency or organization furnishing such benefits,
or by making contributions to vacation plans or funds, or
health and welfare plans and funds, or pension plans or funds,
or similar plans or funds, already established by other
employers of similar employees and in which the port district
is permitted to participate for particular classifications of its
employees by the trustees or other persons responsible for the
administration of such established plans or funds: PROVIDED FURTHER, That no port district employee shall be
allowed to apply for admission to or be accepted as a member
of the state employees' retirement system after January 1,
1965, if admission to such system would result in coverage
under both a private pension system and the state employees'
retirement system, it being the purpose of this proviso that
port districts shall not at the same time contribute for any
employee to both a private pension or retirement plan and to
the state employees' retirement system. The port commission
shall have authority by resolution to utilize and compensate
agents for the purpose of paying, in the name and by the
check of such agent or agents or otherwise, wages, salaries
and other benefits to employees, or particular classifications
thereof, and for the purpose of withholding payroll taxes and
paying over tax moneys so withheld to appropriate government agencies, on a combined basis with the wages, salaries,
benefits, or taxes of other employers or otherwise; to enter
into such contracts and arrangements with and to transfer by
warrant such funds from time to time to any such agent or
agents so appointed as are necessary to accomplish such salary, wage, benefit, or tax payments as though the port district
were a private employer, notwithstanding any other provision
of the law to the contrary. The funds of a port district transferred to such an agent or agents for the payment of wages or
salaries of its employees in the name or by the check of such
agent or agents shall be subject to garnishment with respect to
salaries or wages so paid, notwithstanding any provision of
the law relating to municipal corporations to the contrary.
Notwithstanding any provision in this section, the governing body of a port district may enter into an agreement in
writing with one or more of its officers or employees or a
group of such officers and employees, authorizing deductions
from the officer's or employee's salary or wages of the
amount of any premium specified in writing by the officer or
employee, for contribution to any private pension plan, without loss of eligibility for membership in the state employees'
retirement system, and may agree to remit that amount to the
(2004 Ed.)
53.08.176
management of such private pension plan. However, no port
district funds shall be contributed or paid to such private plan.
When such authorized deductions are certified by the port
commission to the port district's auditor, the auditor shall
draw and issue a proper warrant or warrants, or check or
checks if that method of payment is authorized by statute,
directly to and in favor of the person, firm, corporation, or
organization named in the authorization, for the total amount
authorized to be deducted from the payroll, together with a
list identifying the officers and employees for whom the payment is made.
Nothing in this section may be invoked to invalidate any
private pension plan or any public or private contributions or
payments thereto, or exclude members of any such private
pension plan from membership in the state employees' retirement system, if such private plan was in operation on December 31, 2001. [2002 c 362 § 1; 1991 sp.s. c 30 § 22; 1987 c
50 § 1; 1985 c 81 § 1; 1973 1st ex.s. c 6 § 1; 1965 c 20 § 1;
1955 c 64 § 1.]
Effective date, implementation, application—Severability—1991
sp.s. c 30: See RCW 48.62.900 and 48.62.901.
Garnishment: Chapter 6.27 RCW.
Hospitalization and medical insurance authorized: RCW 41.04.180.
Hospitalization and medical insurance not deemed additional compensation: RCW 41.04.190.
Payroll deductions: RCW 41.04.020.
Prevailing wages on public works: Chapter 39.12 RCW.
53.08.171
53.08.171 Employment relations—Collective bargaining and arbitration. See chapter 53.18 RCW.
53.08.175
53.08.175 Commissioners, officers, and employees—
Reimbursement of expenses. Employees, officers, and
commissioners of port districts shall, when engaged in official business of the port district, be entitled to receive their
necessary and reasonable travel and other business expenses
incurred on behalf of the port district. Reimbursement of such
expenses may be granted, whether incurred within or without
the port district, when submitted on a voucher with appropriate evidence of payment by such employee or official. [1965
c 101 § 1.]
Section headings—1965 c 101: "Section headings as used in this act do
not constitute any part of the law." [1965 c 101 § 3.]
53.08.176
53.08.176 Commissioners, officers, and employees—
Regulation of expenses. Each port district shall adopt a resolution (which may be amended from time to time) which
shall establish the basic rules and regulations governing
methods and amount of reimbursement payable to such port
officials and employees for travel and other business
expenses incurred on behalf of the district. The resolution
shall, among other things, establish procedures for approving
such expenses; set forth the method of authorizing the direct
purchase of transportation; the form of the voucher; and
requirements governing the use of credit cards issued in the
name of the port district. Such regulations may provide for
payment of per diem in lieu of actual expenses when travel
requires overnight lodging: PROVIDED, That in all cases
any per diem payment shall not exceed twenty-five dollars
per day. The state auditor shall, as provided by general law,
[Title 53 RCW—page 13]
53.08.180
Title 53 RCW: Port Districts
cooperate with the port district in establishing adequate procedures for regulating and auditing the reimbursement of all
such expenses. [1965 c 101 § 2.]
Section headings—1965 c 101: See note following RCW 53.08.175.
53.08.180
53.08.180 Federal old age and survivors' insurance
for employees. As used in RCW 53.08.180 through
53.08.200, the term "employees" shall be as defined in RCW
41.48.020 and no distinction shall be made for the purposes
of coverage under the social security act, between persons
employed by a port district on a casual or temporary basis, or
on a regular or steady basis, or between persons paid hourly
wages and persons paid wages on a weekly, monthly, or other
periodic basis. It being the intent of RCW 53.08.180 through
53.08.200 that all employees shall be entitled to the coverage
of the federal social security act for work performed in the
service of a port district, which is not covered by the state
employees' retirement system. [1955 c 219 § 1.]
Public employees' retirement system: Chapter 41.40 RCW.
53.08.190
53.08.190 Federal old age and survivors' insurance
for employees—Plan for extension of benefits. Each port
district, which has not previously done so, shall within thirty
days of June 8, 1955, submit for approval by the governor a
plan for extending the benefits of Title II of the federal social
security act, as amended, in conformity with applicable provisions of said act as set forth in chapter 41.48 RCW, to
employees of such port district who are employed in positions not covered by the employees' retirement system of the
state of Washington. The plan required to be submitted by
this section shall be as set forth in RCW 41.48.050 and shall
be in conformance therewith. [1955 c 219 § 2.]
53.08.200
53.08.200 Federal old age and survivors' insurance
for employees—Contributions. All port districts are authorized to make contributions on employees' wages, and to
impose upon their employees contributions with respect to
their wages in accordance with RCW 41.48.030 through
41.48.050. [1955 c 219 § 3.]
53.08.205
53.08.205 Liability insurance for officials and
employees. The board of commissioners of each port district
may purchase liability insurance with such limits as they may
deem reasonable for the purpose of protecting their officials
and employees against liability for personal or bodily injuries
and property damage arising from their acts or omissions
while performing or in good faith purporting to perform their
official duties. [1973 c 125 § 4.]
53.08.207
53.08.207 Liability insurance for officers and
employees authorized. See RCW 36.16.138.
53.08.208
53.08.208 Actions against officer, employee, or
agent—Defense and costs provided by port district—
Exception. Whenever any action, claim or proceeding is
instituted against any person who is or was an officer,
employee, or agent of a port district established under this
title arising out of the performance or failure of performance
of duties for, or employment with any such district, the commission of the district may grant a request by such person that
[Title 53 RCW—page 14]
the attorney of the district's choosing be authorized to defend
said claim, suit or proceeding, and the costs of defense, attorney's fees, and any obligation for payment arising from such
action may be paid from the district's funds: PROVIDED,
That costs of defense and/or judgment or settlement against
such person shall not be paid in any case where the court has
found that such person was not acting in good faith or within
the scope of his employment with or duties for the district.
[1975 c 60 § 1.]
53.08.210
53.08.210 Quorum.
See RCW 53.12.246.
53.08.220
53.08.220 Regulations authorized—Adoption as part
of ordinance or resolution of city or county, procedure—
Enforcement—Penalty for violation. (1) A port district
may formulate all needful regulations for the use by tenants,
agents, servants, licensees, invitees, suppliers, passengers,
customers, shippers, business visitors, and members of the
general public of any properties or facilities owned or operated by it, and request the adoption, amendment, or repeal of
such regulations as part of the ordinances of the city or town
in which such properties or facilities are situated, or as part of
the resolutions of the county, if such properties or facilities be
situated outside any city or town. The port commission shall
make such request by resolution after holding a public hearing on the proposed regulations, of which at least ten days'
notice shall be published in a legal newspaper of general circulation in the port district. Such regulations must conform
to and be consistent with federal and state law. As to properties or facilities situated within a city or town, such regulations must conform to and be consistent with the ordinances
of the city or town. As to properties or facilities situated outside any city or town, such regulations must conform to and
be consistent with county resolutions. Upon receiving such
request, the governing body of the city, town, or county, as
the case may be, may adopt such regulations as part of its
ordinances or resolutions, or amend or repeal such regulations in accordance with the terms of the request.
(2)(a) Except as otherwise provided in this subsection,
any violation of the regulations described in subsection (1) of
this section is a misdemeanor which shall be redressed in the
same manner as other police regulations of the city, town, or
county, and it shall be the duty of all law enforcement officers
to enforce such regulations accordingly.
(b) Except as provided in (c) of this subsection, violation
of such a regulation relating to traffic including parking,
standing, stopping, and pedestrian offenses is a traffic infraction.
(c) Violation of such a regulation equivalent to those
provisions of Title 46 RCW set forth in RCW 46.63.020
remains a misdemeanor. [2003 c 53 § 286; 1979 ex.s. c 136
§ 103; 1961 c 38 § 1.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
Effective date—Severability—1979 ex.s. c 136: See notes following
RCW 46.63.010.
53.08.230 Making motor vehicle and other police
regulations applicable to district property—Filing plat
with county auditor—Duty of law enforcement officers.
A port district may at its option file with the county auditor a
53.08.230
(2004 Ed.)
Powers
plat of any of its properties or facilities, showing thereon such
private streets, alleys, access roads, parking areas, parks and
other places as the port district may wish to have treated as
public for purposes of motor vehicle or other police regulations. Such plat may be amended at any time by the filing of
an amendatory plat, and may be vacated at any time by the
filing of a resolution of vacation. So long as any such plat or
amendatory plat is on file and not vacated, the motor vehicle
or other police regulations of the state, and the motor vehicle
regulations of the city, town or county, as the case may be, in
which the areas described in the plat are situated, shall apply
to such areas as though they were public streets, alleys,
access roads, parking areas, parks or other places, and it shall
be the duty of all state and local law enforcement officers to
enforce such regulations accordingly. [1961 c 38 § 2.]
53.08.240
53.08.240 Joint exercise of powers and joint acquisition of property—Contracts with other governmental
entities. (1) Any two or more port districts shall have the
power, by mutual agreement, to exercise jointly all powers
granted to each individual district, and in the exercise of such
powers shall have the right and power to acquire jointly all
lands, property, property rights, leases, or easements necessary for their purposes, either entirely within or partly within
or partly without or entirely without such districts: PROVIDED, That any two or more districts so acting jointly, by
mutual agreement, shall not acquire any real property or real
property rights in any other port district without the consent
of such district.
(2) A district may enter into any contract with the United
States, or any state, county, or municipal corporation, or any
department of those entities, for carrying out any of the powers that each of the contracting parties may by law exercise
separately.
(3)(a) A port district that is located in a county that has a
contiguous border with another state, and a population
between fifty and seventy thousand, may enter into any contract that each of the contracting parties may by law exercise
separately with, including but not limited to, municipal corporations of adjoining states.
(b) In addition to other powers granted by statute, a port
district that is located in a county that has a contiguous border
with another state, and a population between fifty and seventy thousand, may enter into agreements with the United
States or any of its agencies, or with any state, or with any
municipal corporation of this state or of an adjoining state,
for exercising jointly or cooperatively within or outside the
district, in whole or in part, any of the powers that each of the
contracting parties may by law exercise separately, for the
promotion or development of trade or industry. Such powers
may be exercised outside the boundaries of this state only
after a public hearing of which notice has been published in a
newspaper of general circulation within the district at least
ten days in advance, and pursuant to findings and a resolution
by the port district's commission that: (i) The undertaking
and the district's participation in it will substantially benefit
the district and the state of Washington; and (ii) the districts'
share of the cost will not exceed an amount calculated by
dividing the total cost of the undertaking by the number of
participants. [1999 c 306 § 3; 1961 c 24 § 1.]
(2004 Ed.)
53.08.290
Purpose—1999 c 306: See note following RCW 53.04.010.
53.08.245
53.08.245 Economic development programs authorized. It shall be in the public purpose for all port districts to
engage in economic development programs. In addition, port
districts may contract with nonprofit corporations in furtherance of this and other acts relating to economic development.
[1985 c 125 § 1.]
53.08.250
53.08.250 Participation in world fairs or expositions
authorized. See chapter 35.60 RCW.
53.08.255
53.08.255 Tourism promotion authorized. Any port
district in this state, acting through its commission, has power
to expend moneys and conduct promotion of resources and
facilities in the district or general area by advertising, publicizing, or otherwise distributing information to attract visitors and encourage tourist expansion. [1984 c 122 § 10.]
53.08.260
53.08.260 Park and recreation facilities. A port district may construct, improve, maintain, and operate public
park and recreation facilities when such facilities are necessary to more fully utilize boat landings, harbors, wharves and
piers, air, land, and water passenger and transfer terminals,
waterways, and other port facilities authorized by law pursuant to the port's comprehensive plan of harbor improvements
and industrial development. [1965 c 81 § 1.]
Harbor improvement plan: RCW 53.20.010.
53.08.270
53.08.270 Park and recreation facilities—Approval
of other agencies. Before undertaking any such plan for the
acquisition and operation of any park or recreational facility
the proposed plan therefor shall be first submitted in writing
to the director of the parks and recreation commission and to
the governing body of any county or municipal park agency
having jurisdiction in the area. The state director and/or such
county or municipal park agency shall examine the port's proposed plan, and may disapprove such proposed plan if it is
found to be in conflict with state or local park and recreation
plans for the same area. If such proposed port plan is disapproved the port district shall not proceed further with such
plan. If the state director or the governing body of the county
or municipal agency does not respond in writing to the port
within sixty days, it shall be deemed that approval has been
granted. [1965 c 81 § 2.]
53.08.280
53.08.280 Police officers—Appointment authorized—Jurisdiction. Any port district operating an airport
with a police department as authorized by RCW 14.08.120 or
designated as a port of entry by the federal government is
authorized to appoint police officers with full police powers
to enforce all applicable federal, state, or municipal statutes,
rules, regulations, or ordinances upon any port-owned or
operated properties or operations: PROVIDED, That such
police officers must have successfully graduated from a recognized professional police academy or training institution.
[1981 c 97 § 1; 1974 ex.s. c 62 § 1.]
53.08.290
53.08.290 Intermodal movement of interstate and
foreign cargo—Restrictions. In addition to the other pow[Title 53 RCW—page 15]
53.08.295
Title 53 RCW: Port Districts
ers under this chapter, a port district, in connection with the
operation of facilities and improvements of the district, may
perform all necessary activities related to the intermodal
movement of interstate and foreign cargo: PROVIDED, That
nothing contained herein shall authorize a port district to
engage in the transportation of commodities by motor vehicle
for compensation outside the boundaries of the port district.
A port district may, by itself or in conjunction with public or
private entities, acquire, construct, purchase, lease, contract
for, provide, and operate rail services, equipment, and facilities inside or outside the port district: PROVIDED, That
such authority may only be exercised outside the boundaries
of the port district if such extraterritorial rail services, equipment, or facilities are found, by resolution of the commission
of the port district exercising such authority, to be reasonably
necessary to link the rail services, equipment, and facilities
within the port district to an interstate railroad system; however, if such extraterritorial rail services, equipment, or facilities are in or are to be located in one or more other port districts, the commission of such other port district or districts
must consent by resolution to the proposed plan of the originating port district which consent shall not be unreasonably
withheld: PROVIDED FURTHER, That no port district
shall engage in the manufacture of rail cars for use off port
property. [1981 c 47 § 1; 1980 c 110 § 2.]
Purpose—1980 c 110: "The purpose of this act is to:
(1) Clarify existing law as to the authority of port districts to perform
certain cargo movement activities and to contract for or otherwise provide
facilities for rail service for the movement of such cargo; and
(2) Provide authority for port districts to assist in development of the
recreation-tourism industry by acquiring and operating certain watercraft in
limited areas." [1980 c 110 § 1.]
53.08.295
53.08.295 Passenger carrying watercraft. A port district may acquire, lease, construct, purchase, maintain, and
operate passenger carrying vessels on interstate navigable
rivers of the state and intrastate waters of adjoining states.
Service provided shall be under terms, conditions, and rates
to be fixed and approved by the port commission. Operation
of such vessels shall be subject to applicable state and federal
laws pertaining to such service. [1980 c 110 § 3.]
Purpose—1980 c 110: See note following RCW 53.08.290.
53.08.300
53.08.300 Rewards for arrest and conviction of persons committing criminal offenses against port district
authorized. See RCW 10.85.030.
53.08.310
53.08.310 Moorage facilities—Definitions. Unless the
context clearly requires otherwise, the definitions in this section apply throughout this section and RCW 53.08.320.
(1) "Port charges" mean charges of a moorage facility
operator for moorage and storage, and all other charges
owing or to become owing under a contract between a vessel
owner and the moorage facility operator, or under an officially adopted tariff including, but not limited to, costs of sale
and related legal expenses.
(2) "Vessel" means every species of watercraft or other
artificial contrivance capable of being used as a means of
transportation on water and which does not exceed two hundred feet in length. "Vessel" includes any trailer used for the
transportation of watercraft.
[Title 53 RCW—page 16]
(3) "Moorage facility" means any properties or facilities
owned or operated by a moorage facility operator which are
capable of use for the moorage or storage of vessels.
(4) "Moorage facility operator" means any port district,
city, town, metropolitan park district, or county which owns
and/or operates a moorage facility.
(5) "Owner" means every natural person, firm, partnership, corporation, association, or organization, or agent
thereof, with actual or apparent authority, who expressly or
impliedly contracts for use of a moorage facility.
(6) "Transient vessel" means a vessel using a moorage
facility and which belongs to an owner who does not have a
moorage agreement with the moorage facility operator. Transient vessels include, but are not limited to: Vessels seeking
a harbor of refuge, day use, or overnight use of a moorage
facility on a space-as-available basis. [1986 c 260 § 1; 1983
c 188 § 1.]
Construction—Savings—1983 c 188: "Nothing contained in RCW
53.08.310 and 53.08.320 may be construed as a limitation of any rights, privileges, or remedies previously existing under any applicable laws of port districts, cities, towns, metropolitan park districts, or counties." [1983 c 188 §
3.]
Severability—1983 c 188: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1983 c 188 § 5.]
53.08.320
53.08.320 Moorage facilities—Rules authorized—
Port charges, delinquency—Abandoned vessels, public
sale. A moorage facility operator may adopt all rules necessary for rental and use of moorage facilities and for the expeditious collection of port charges. The rules may also establish procedures for the enforcement of these rules by port district, city, county, metropolitan park district or town
personnel. The rules shall include the following:
(1) Procedures authorizing moorage facility personnel to
take reasonable measures, including the use of chains, ropes,
and locks, or removal from the water, to secure vessels within
the moorage facility so that the vessels are in the possession
and control of the moorage facility operator and cannot be
removed from the moorage facility. These procedures may be
used if an owner mooring or storing a vessel at the moorage
facility fails, after being notified that charges are owing and
of the owner's right to commence legal proceedings to contest
that such charges are owing, to pay the port charges owed or
to commence legal proceedings. Notification shall be by registered mail to the owner at his or her last known address. In
the case of a transient vessel, or where no address was furnished by the owner, the moorage facility operator need not
give such notice prior to securing the vessel. At the time of
securing the vessel, an authorized moorage facility employee
shall attach to the vessel a readily visible notice. The notice
shall be of a reasonable size and shall contain the following
information:
(a) The date and time the notice was attached;
(b) A statement that if the account is not paid in full
within ninety days from the time the notice is attached, the
vessel may be sold at public auction to satisfy the port
charges; and
(c) The address and telephone number where additional
information may be obtained concerning release of the vessel.
(2004 Ed.)
Powers
After a vessel is secured, the operator shall make a reasonable effort to notify the owner by registered mail in order
to give the owner the information contained in the notice.
(2) Procedures authorizing moorage facility personnel at
their discretion to move moored vessels ashore for storage
within properties under the operator's control or for storage
with private persons under their control as bailees of the
moorage facility, if the vessel is, in the opinion of port personnel a nuisance, if the vessel is in danger of sinking or creating other damage, or is owing port charges. Costs of any
such procedure shall be paid by the vessel's owner. If the
owner is not known, or unable to reimburse the moorage
facility operator for the costs of these procedures, the mooring facility operators may seek reimbursement of seventyfive percent of all reasonable and auditable costs from the
derelict vessel removal account established in RCW
79.100.100.
(3) If a vessel is secured under subsection (1) of this section or moved ashore under subsection (2) of this section, the
owner who is obligated to the moorage facility operator for
port charges may regain possession of the vessel by:
(a) Making arrangements satisfactory with the moorage
facility operator for the immediate removal of the vessel from
the moorage facility or for authorized moorage; and
(b) Making payment to the moorage facility operator of
all port charges, or by posting with the moorage facility operator a sufficient cash bond or other acceptable security, to be
held in trust by the moorage facility operator pending written
agreement of the parties with respect to payment by the vessel owner of the amount owing, or pending resolution of the
matter of the charges in a civil action in a court of competent
jurisdiction. After entry of judgment, including any appeals,
in a court of competent jurisdiction, or after the parties reach
agreement with respect to payment, the trust shall terminate
and the moorage facility operator shall receive so much of the
bond or other security as is agreed, or as is necessary to satisfy any judgment, costs, and interest as may be awarded to
the moorage facility operator. The balance shall be refunded
immediately to the owner at his or her last known address.
(4) If a vessel has been secured by the moorage facility
operator under subsection (1) of this section and is not
released to the owner under the bonding provisions of this
section within ninety days after notifying or attempting to
notify the owner under subsection (1) of this section, the vessel shall be conclusively presumed to have been abandoned
by the owner.
(5) If a vessel moored or stored at a moorage facility is
abandoned, the moorage facility operator may, by resolution
of its legislative authority, authorize the public sale of the
vessel by authorized personnel to the highest and best bidder
for cash as prescribed by this subsection (5). Either a minimum bid may be established or a letter of credit may be
required, or both, to discourage the future reabandonment of
the vessel.
(a) Before the vessel is sold, the owner of the vessel shall
be given at least twenty days' notice of the sale in the manner
set forth in subsection (1) of this section if the name and
address of the owner is known. The notice shall contain the
time and place of the sale, a reasonable description of the vessel to be sold, and the amount of port charges owed with
respect to the vessel. The notice of sale shall be published at
(2004 Ed.)
53.08.340
least once, more than ten but not more than twenty days
before the sale, in a newspaper of general circulation in the
county in which the moorage facility is located. Such notice
shall include the name of the vessel, if any, the last known
owner and address, and a reasonable description of the vessel
to be sold. The moorage facility operator may bid all or part
of its port charges at the sale and may become a purchaser at
the sale.
(b) Before the vessel is sold, any person seeking to
redeem an impounded vessel under this section may commence a lawsuit in the superior court for the county in which
the vessel was impounded to contest the validity of the
impoundment or the amount of the port charges owing. Such
lawsuit must be commenced within ten days of the date the
notification was provided pursuant to subsection (1) of this
section, or the right to a hearing shall be deemed waived and
the owner shall be liable for any port charges owing the
moorage facility operator. In the event of litigation, the prevailing party shall be entitled to reasonable attorneys' fees
and costs.
(c) The proceeds of a sale under this section shall first be
applied to the payment of port charges. The balance, if any,
shall be paid to the owner. If the owner cannot in the exercise
of due diligence be located by the moorage facility operator
within one year of the date of the sale, the excess funds from
the sale shall revert to the derelict vessel removal account
established in RCW 79.100.100. If the sale is for a sum less
than the applicable port charges, the moorage facility operator is entitled to assert a claim for a deficiency.
(d) In the event no one purchases the vessel at a sale, or
a vessel is not removed from the premises or other arrangements are not made within ten days of sale, title to the vessel
will revert to the moorage facility operator.
(6) The rules authorized under this section shall be
enforceable only if the moorage facility has had its tariff containing such rules conspicuously posted at its moorage facility at all times. [2002 c 286 § 23; 1986 c 260 § 2; 1985 c 7 §
124; 1983 c 188 § 2.]
Severability—Effective date—2002 c 286: See RCW 79.100.900 and
79.100.901.
Severability—Construction—Savings—1983 c 188: See notes following RCW 53.08.310.
53.08.330
53.08.330 Streets, roads, and highways—Construction, upgrading, improvement, and repair authorized.
Any port district in this state, acting through its commission,
may expend port funds toward construction, upgrading,
improvement, or repair of any street, road, or highway that
serves port facilities. [1990 c 5 § 1.]
53.08.340
53.08.340 Streets, roads, and highways—Expenditure of funds. The funds authorized by RCW 53.08.330 may
be expended by the port commission in conjunction with any
plan of improvements undertaken by the state of Washington,
an adjoining state, or a county or municipal government of
either, in combination with any of said public entities, and
without regard to whether expenditures are made for a road
located within the state of Washington or an adjoining state.
[1990 c 5 § 2.]
[Title 53 RCW—page 17]
53.08.350
Title 53 RCW: Port Districts
53.08.350
53.08.350 Moratorium on runway construction or
extension, or initiation of new service—Certain counties
affected. No city, county, or county-wide port district in a
county in the western part of Washington state as divided by
the summit of the Cascade mountain range, with a population
of one hundred fifty thousand or more on January 1, 1992,
and contiguous to a county with a population of four hundred
thousand or more may construct a runway of one thousand
feet or more, or cause a runway to be extended, or permit an
air carrier to initiate new service at any airport not presently
receiving commercial service that is affected by this section,
before the air transportation commission has submitted its
final report to the legislative transportation committee, which
shall occur no later than December 1, 1994. [1992 c 190 § 2.]
53.08.360
53.08.360 Annexation of port district property—
Transfer of employees engaged in fire fighting. (1) When
a port district provides its own fire protection services with
port district employees, and port district property is included
as part of an annexation, incorporation, consolidation, or
merger by a city, town, or fire protection district, and fire protection services for this port district property will be furnished by the city, town, or fire protection district, an eligible
employee may transfer employment to the city, town, or fire
protection district in the same manner and under the same
conditions that a fire fighter may transfer employment into a
fire protection district pursuant to RCW 52.04.111,
52.04.121, and 52.04.131.
(2) "Eligible employee" means an employee of the port
district who (a) was at the time of the annexation, merger,
consolidation, or incorporation employed exclusively or principally in performing the powers, duties, and functions which
are to be performed by the fire department of the city, town,
or fire protection district, (b) will, as a direct consequence of
the annexation, merger, consolidation, or incorporation, be
separated from the employ of the port district, and (c) can
perform the duties and meet the minimum requirements of
the position to be filled. [1994 c 74 § 2.]
Intent—1994 c 74: "The legislature recognizes that it passed comprehensive legislation in 1986 to provide protection to fire fighters who risk losing their jobs as a result of an annexation, incorporation, merger, or consolidation by a city, town, or fire protection district. The legislation did not, however, grant these same protections to fire fighters who are employed by port
districts. It is the intent of the legislature that fire fighters who are employed
by port districts should have the same transfer rights as other local government fire fighters in the event of an annexation, consolidation, merger, or
incorporation by a city, town, or fire protection district." [1994 c 74 § 1.]
53.08.370
53.08.370 Telecommunications facilities—Construct,
purchase, acquire, etc.—Purposes—Limitations—Eminent domain. (1) A rural port district in existence on June 8,
2000, may construct, purchase, acquire, develop, finance,
lease, license, handle, provide, add to, contract for, interconnect, alter, improve, repair, operate, and maintain any telecommunications facilities within or without the district's limits for the following purposes:
(a) For the district's own use; and
(b) For the provision of wholesale telecommunications
services within the district's limits. Nothing in this subsection
shall be construed to authorize rural port districts to provide
telecommunications services to end users.
[Title 53 RCW—page 18]
(2) A rural port district providing wholesale telecommunications services under this section shall ensure that rates,
terms, and conditions for such services are not unduly or
unreasonably discriminatory or preferential. Rates, terms,
and conditions are discriminatory or preferential when a rural
port district offering such rates, terms, and conditions to an
entity for wholesale telecommunications services does not
offer substantially similar rates, terms, and conditions to all
other entities seeking substantially similar services.
(3) When a rural port district establishes a separate utility
function for the provision of wholesale telecommunications
services, it shall account for any and all revenues and expenditures related to its wholesale telecommunications facilities
and services separately from revenues and expenditures
related to its internal telecommunications operations. Any
revenues received from the provision of wholesale telecommunications services must be dedicated to the utility function
that includes the provision of wholesale telecommunications
services for costs incurred to build and maintain the telecommunications facilities until such time as any bonds or other
financing instruments executed after June 8, 2000, and used
to finance the telecommunications facilities are discharged or
retired.
(4) When a rural port district establishes a separate utility
function for the provision of wholesale telecommunications
services, all telecommunications services rendered by the
separate function to the district for the district's internal telecommunications needs shall be charged at its true and full
value. A rural port district may not charge its nontelecommunications operations rates that are preferential or discriminatory compared to those it charges entities purchasing wholesale telecommunications services.
(5) A rural port district shall not exercise powers of eminent domain to acquire telecommunications facilities or contractual rights held by any other person or entity to telecommunications facilities.
(6) Except as otherwise specifically provided, a rural
port district may exercise any of the powers granted to it
under this title and other applicable laws in carrying out the
powers authorized under this section. Nothing in chapter 81,
Laws of 2000 limits any existing authority of a rural port district under this title. [2000 c 81 § 7.]
Findings—2000 c 81: See note following RCW 53.08.005.
53.08.380
53.08.380 Wholesale telecommunications services—
Petition for review of rates, terms, conditions. (1) A person or entity that has requested wholesale telecommunications services from a rural port district may petition the commission under the procedures set forth in RCW 80.04.110 (1)
through (3) if it believes the district's rates, terms, and conditions are unduly or unreasonably discriminatory or preferential. The person or entity shall provide the district notice of its
intent to petition the commission and an opportunity to
review within thirty days the rates, terms, and conditions as
applied to it prior to submitting its petition. In determining
whether a district is providing discriminatory or preferential
rates, terms, and conditions, the commission may consider
such matters as service quality, technical feasibility of connection points on the district's telecommunications facilities,
time of response to service requests, system capacity, and
(2004 Ed.)
Commissioners—Elections
other matters reasonably related to the provision of wholesale
telecommunications services. If the commission, after notice
and hearing, determines that a rural port district's rates, terms,
and conditions are unduly or unreasonably discriminatory or
preferential, it shall issue a final order finding noncompliance
with this section and setting forth the specific areas of apparent noncompliance. An order imposed under this section shall
be enforceable in any court of competent jurisdiction.
(2) The commission may order a rural port district to pay
a share of the costs incurred by the commission in adjudicating or enforcing this section.
(3) Without limiting other remedies at law or equity, the
commission and prevailing party may also seek injunctive
relief to compel compliance with an order.
(4) Nothing in this section shall be construed to affect the
commission's authority and jurisdiction with respect to
actions, proceedings, or orders permitted or contemplated for
a state commission under the federal telecommunications act
of 1996, P.L. 104-104 (110 Stat. 56). [2000 c 81 § 9.]
Findings—2000 c 81: See note following RCW 53.08.005.
53.08.390
53.08.390 Grays Harbor pilotage district—Conditions on pilotage service. A countywide port district located
in part or in whole within the Grays Harbor pilotage district,
as defined by RCW 88.16.050(2), may commence pilotage
service with the following powers and subject to the conditions contained in this section.
(1) Persons employed to perform the pilotage service of
a port district must be licensed under chapter 88.16 RCW to
provide pilotage.
(2) Before establishing pilotage service, a port district
shall give at least sixty days' written notice to the chairman of
the board of pilotage commissioners to provide pilotage.
(3) A port district providing pilotage service under this
section requiring additional pilots may petition the board of
pilotage commissioners to qualify and license as a pilot a person who has passed the examination and is on the waiting list
for the training program for the district. If there are no persons on the waiting list, the board shall solicit applicants and
offer the examination.
(4) In addition to the power to employ or contract with
pilots, a port district providing pilotage services under this
section has such other powers as are reasonably necessary to
accomplish the purpose of this section including, but not limited to, providing through ownership or contract pilots
launches, dispatcher services, or ancillary tug services
required for operations or safety.
(5) A port district providing pilotage services under this
section may recommend to the board of pilotage commissioners rules of service, rates, and tariffs governing its pilotage services for consideration and adoption pursuant to RCW
88.16.035. The rules, rates, and tariffs recommended by the
port district must have been approved in open meetings of the
port district ten or more days after published notice in a newspaper of general circulation and after mailing a copy of the
notice to the chairman of the board of pilotage commissioners.
(6) A pilot providing pilotage services under this section
must comply with all requirements of the pilotage act, chap(2004 Ed.)
Chapter 53.12
ter 88.16 RCW, and all rules adopted thereunder. [2001 2nd
sp.s. c 22 § 1.]
Construction—2001 2nd sp.s. c 22: "Nothing in this act is intended to
amend chapter 88.16 RCW." [2001 2nd sp.s. c 22 § 3.]
Effective date—2001 2nd sp.s. c 22: "This act is necessary for the
immediate preservation of the public peace, health, or safety, or support of
the state government and its existing public institutions, and takes effect
immediately [July 13, 2001]." [2001 2nd sp.s. c 22 § 4.]
53.08.400
53.08.400 District may exercise powers of community renewal agency. A port district may enter into a contract with any city, town, or county for the purpose of exercising any powers of a community renewal agency under chapter 35.81 RCW. [2002 c 218 § 27.]
Severability—Savings—Construction—2002 c 218: See notes following RCW 35.81.005.
53.08.410
53.08.410 Abandoned or derelict vessels. A port district has the authority, subject to the processes and limitation
outlined in chapter 79.100 RCW, to store, strip, use, auction,
sell, salvage, scrap, or dispose of an abandoned or derelict
vessel found on or above publicly or privately owned aquatic
lands within the jurisdiction of the port district. [2002 c 286
§ 18.]
Severability—Effective date—2002 c 286: See RCW 79.100.900 and
79.100.901.
53.08.420
53.08.420 Cooperative watershed management. In
addition to the authority provided in this chapter, a port district may participate in and expend revenue on cooperative
watershed management actions, including watershed management partnerships under RCW 39.34.210 and other intergovernmental agreements, for purposes of water supply,
water quality, and water resource and habitat protection and
management. [2003 c 327 § 16.]
Finding—Intent—2003 c 327: See note following RCW 39.34.190.
53.08.430
53.08.430 Provision of consulting services—Limitations. (Expires July 1, 2008.) A port district may provide
advisory consulting services for compensation on matters
within the scope of this title or Title 14 RCW. A port district
may provide these services only to other public agencies and
governments, including foreign governments and government-sponsored organizations. A port district providing consulting services must create and maintain an open roster of
Washington firms interested in bidding on opportunities generated as a result.
By enacting this legislation, the legislature intends to
enhance the ability of Washington port districts to facilitate
economic opportunities for the benefit of Washington businesses. Nothing in this section is intended to authorize direct
competition by port districts with private business. [2004 c
78 § 1.]
Expiration date—2004 c 78: "This act expires July 1, 2008." [2004 c
78 § 2.]
Chapter 53.12
Chapter 53.12 RCW
COMMISSIONERS—ELECTIONS
Sections
53.12.005
Definition—"Gross operating revenue."
[Title 53 RCW—page 19]
53.12.005
53.12.010
53.12.021
53.12.061
53.12.115
53.12.120
53.12.130
53.12.140
53.12.172
53.12.175
53.12.221
53.12.245
53.12.246
53.12.260
53.12.265
53.12.270
Title 53 RCW: Port Districts
Port commission—Number of commissioners, districts.
Elimination of commissioner districts.
Elections to conform with general election law.
Increasing number of commissioners—Resolution, petition—
Ballot proposition.
Increasing number of commissioners—Population requirements—Ballot proposition—Election of added commissioners.
Increasing number of commissioners—Election of additional
commissioners—Commencement and terms of office.
Vacancies.
Port commissioner terms of office.
Reducing port commissioner terms—Ballot proposition.
Terms—Districts covering entire county with populations of
one hundred thousand or more.
Organization of commission—Powers and duties—Record of
proceedings.
Quorum.
Compensation.
Waiver of compensation.
Delegation of powers to managing official of port district.
Elections: Title 29A RCW.
Redistricting by local governments and municipal corporations—Census
information for—Plan, prepared when, criteria for, hearing on,
request for review of, certification, remand—Sanctions when review
request frivolous: RCW 29A.76.010.
53.12.005
53.12.005 Definition—"Gross operating revenue."
For purposes of this chapter, "gross operating revenue"
means the total of all revenues received by a port district.
[1992 c 147 § 5.]
Severability—1992 c 147: See note following RCW 53.04.020.
53.12.010
53.12.010 Port commission—Number of commissioners, districts. (1) The powers of the port district shall be
exercised through a port commission consisting of three or,
when permitted by this title, five members. Every port district
that is not coextensive with a county having a population of
five hundred thousand or more shall be divided into the same
number of commissioner districts as there are commissioner
positions, each having approximately equal population,
unless provided otherwise under subsection (2) of this section. Where a port district with three commissioner positions
is coextensive with the boundaries of a county that has a population of less than five hundred thousand and the county has
three county legislative authority districts, the port commissioner districts shall be the county legislative authority districts. In other instances where a port district is divided into
commissioner districts, the port commission shall divide the
port district into commissioner districts unless the commissioner districts have been described pursuant to RCW
53.04.031. The commissioner districts shall be altered as provided in chapter 53.16 RCW.
Commissioner districts shall be used as follows: (a)
Only a registered voter who resides in a commissioner district may be a candidate for, or hold office as, a commissioner
of the commissioner district; and (b) only the voters of a commissioner district may vote at a primary to nominate candidates for a commissioner of the commissioner district. Voters
of the entire port district may vote at a general election to
elect a person as a commissioner of the commissioner district.
(2)(a) In port districts with five commissioners, two of
the commissioner districts may include the entire port district
if approved by the voters of the district either at the time of
formation or at a subsequent port district election at which the
[Title 53 RCW—page 20]
issue is proposed pursuant to a resolution adopted by the
board of commissioners and delivered to the county auditor.
(b) In a port district with five commissioners, where two
of the commissioner districts include the entire port district,
the port district may be divided into five commissioner districts if proposed pursuant to a resolution adopted by the
board of commissioners or pursuant to a petition by the voters
and approved by the voters of the district at the next general
or special election occurring sixty or more days after the
adoption of the resolution. A petition proposing such an
increase must be submitted to the county auditor of the
county in which the port district is located and signed by voters of the port district at least equal in number to ten percent
of the number of voters in the port district who voted at the
last general election.
Upon approval by the voters, the commissioner district
boundaries shall be redrawn into five districts within one
hundred twenty days and submitted to the county auditor pursuant to RCW 53.16.015. The new commissioner districts
shall be numbered one through five and the three incumbent
commissioners representing the three former districts shall
represent commissioner districts one through three. The two
at large incumbent commissioners shall represent commissioner districts four and five. If, as a result of redrawing the
district boundaries more than one of the incumbent commissioners resides in one of the new commissioner districts, the
commissioners who reside in the same commissioner district
shall determine by lot which of the numbered commissioner
districts they shall represent for the remainder of their respective terms. [2002 c 51 § 1; 1994 c 223 § 81; 1992 c 146 § 1;
1991 c 363 § 128; 1965 c 51 § 1; 1959 c 17 § 3. Prior: 1913
c 62 § 2; 1911 c 92 § 3; RRS § 9690.]
Purpose—Captions not law—1991 c 363: See notes following RCW
2.32.180.
53.12.021
53.12.021 Elimination of commissioner districts.
Any less than county-wide port district that uses commissioner districts may cease using commissioner districts as
provided in this section.
A ballot proposition authorizing the elimination of commissioner districts shall be submitted to the voters of a less
than county-wide port district that is divided into commissioner districts if (1) a petition is submitted to the port commission proposing that the port district cease using commissioner districts, that is signed by registered voters of the port
district equal in number to at least ten percent of the number
of voters who voted at the last district general election; or (2)
the port commissioners adopt a resolution proposing that the
port district cease using commissioner districts. The port
commission shall transfer the petition or resolution immediately to the county auditor who shall, when a petition is submitted, review the signatures and certify its sufficiency. A
ballot proposition authorizing the elimination of commissioner districts shall be submitted at the next district general
election occurring sixty or more days after a petition with sufficient signatures was submitted. If the ballot proposition
authorizing the port district to cease using commissioner districts is approved by a simple majority vote, the port district
shall cease using commissioner districts at all subsequent
elections. [1994 c 223 § 82.]
(2004 Ed.)
Commissioners—Elections
53.12.061 Elections to conform with general election
law. All elections relating to a port district shall conform
with general election law, except as expressly provided in
Title 53 RCW. [1992 c 146 § 5.]
53.12.061
53.12.115 Increasing number of commissioners—
Resolution, petition—Ballot proposition. A ballot proposition shall be submitted to the voters of any port district authorizing an increase in the number of port commissioners to
five whenever the port commission adopts a resolution proposing the increase in number of port commissioners or a
petition proposing such an increase has been submitted to the
county auditor of the county in which the port district is
located that has been signed by voters of the port district at
least equal in number to ten percent of the number of voters
in the port district who voted at the last general election. The
ballot proposition shall be submitted at the next general or
special election occurring sixty or more days after the petition was submitted or resolution was adopted.
At the next general or special election following the election in which an increase in the number of port commissioners was authorized, candidates for the two additional port
commissioner positions shall be elected as provided in RCW
53.12.130, and the voters may be asked to approve the nomination of commissioners from district-wide commissioner
districts as permitted in RCW 53.12.010(2). [1994 c 223 §
86; 1992 c 146 § 7.]
53.12.115
53.12.120 Increasing number of commissioners—
Population requirements—Ballot proposition—Election
of added commissioners. When the population of a port district that has three commissioners reaches five hundred thousand, in accordance with the latest United States regular or
special census or with the official state population estimate,
there shall be submitted to the voters of the district, at the
next district general election or at a special port election
called for that purpose, the proposition of increasing the number of commissioners to five.
At the next district general election following the election in which an increase in the number of port commissioners was authorized, candidates for the two additional port
commissioner positions shall be elected as provided in RCW
53.12.130. [1994 c 223 § 87; 1992 c 146 § 8; 1982 c 219 § 1;
1965 c 51 § 7; 1959 c 175 § 3; 1959 c 17 § 10. Prior: 1953 c
198 § 1; 1913 c 62 § 2, part; 1911 c 92 § 3, part; RRS § 9690,
part.]
53.12.120
53.12.130 Increasing number of commissioners—
Election of additional commissioners—Commencement
and terms of office. Two additional port commissioners
shall be elected at the next district general election following
the election at which voters authorized the increase in port
commissioners to five members.
The port commissioners shall divide the port district into
five commissioner districts prior to the first day of June in the
year in which the two additional commissioners shall be
elected, unless the voters approved the nomination of the two
additional commissioners from district-wide commissioner
districts as permitted in RCW 53.12.010(2). The new commissioner districts shall be numbered one through five and
the three incumbent commissioners shall represent commis53.12.130
(2004 Ed.)
53.12.172
sioner districts one through three. If, as a result of redrawing
the district boundaries two or three of the incumbent commissioners reside in one of the new commissioner districts, the
commissioners who reside in the same commissioner district
shall determine by lot which of the first three numbered commissioner districts they shall represent for the remainder of
their respective terms. A primary shall be held to nominate
candidates from districts four and five where necessary and
commissioners shall be elected from commissioner districts
four and five at the general election. The persons elected as
commissioners from commissioner districts four and five
shall take office immediately after qualification as defined
under *RCW 29.01.135.
In a port district where commissioners are elected to
four-year terms of office, the additional commissioner thus
elected receiving the highest number of votes shall be elected
to a four-year term of office and the other additional commissioner thus elected shall be elected to a term of office of two
years, if the election is held in an odd-numbered year, or the
additional commissioner thus elected receiving the highest
number of votes shall be elected to a term of office of three
years and the other shall be elected to a term of office of one
year, if the election is held in an even-numbered year. In a
port district where the commissioners are elected to six-year
terms of office, the additional commissioner thus elected
receiving the highest number of votes shall be elected to a
six-year term of office and the other additional commissioner
shall be elected to a four-year term of office, if the election is
held in an odd-numbered year, or the additional commissioner receiving the highest number of votes shall be elected
to a term of office of five-years and the other shall be elected
to a three-year term of office, if the election is held in an
even-numbered year. The length of terms of office shall be
computed from the first day of January in the year following
this election.
Successor commissioners from districts four and five
shall be elected to terms of either six or four years, depending
on the length of terms of office to which commissioners of
that port district are elected. [1994 c 223 § 88; 1992 c 146 §
9; 1965 c 51 § 8; 1959 c 17 § 11. Prior: 1953 c 198 § 2; 1913
c 62 § 2, part; 1911 c 92 § 3, part; RRS § 9690, part.]
*Reviser's note: RCW 29.01.135 was recodified as RCW 29A.04.133
pursuant to 2003 c 111 § 2401, effective July 1, 2004.
53.12.140
53.12.140 Vacancies. A vacancy in the office of port
commissioner shall occur as provided in chapter 42.12 RCW
or by nonattendance at meetings of the port commission for a
period of sixty days unless excused by the port commission.
A vacancy on a port commission shall be filled as provided in
chapter 42.12 RCW. [1994 c 223 § 54; 1959 c 17 § 9. Prior:
1913 c 62 § 2, part; 1911 c 92 § 3, part; RRS § 9690, part.]
53.12.172 Port commissioner terms of office. (1) In
every port district the term of office of each port commissioner shall be four years in each port district that is countywide with a population of one hundred thousand or more, or
either six or four years in all other port districts as provided in
RCW 53.12.175, and until a successor is elected and qualified and assumes office in accordance with *RCW 29.04.170.
(2) The initial port commissioners shall be elected at the
same election as when the ballot proposition is submitted to
53.12.172
[Title 53 RCW—page 21]
53.12.175
Title 53 RCW: Port Districts
voters authorizing the creation of the port district. If the port
district is created the persons elected at this election shall
serve as the initial port commission. No primary shall be
held. The person receiving the greatest number of votes for
commissioner from each commissioner district shall be
elected as the commissioner of that district.
(3) The terms of office of the initial port commissioners
shall be staggered as follows in a port district that is countywide with a population of one hundred thousand or more: (a)
The two persons who are elected receiving the two greatest
numbers of votes shall be elected to four-year terms of office
if the election is held in an odd-numbered year, or three-year
terms of office if the election is held in an even-numbered
year, and shall hold office until successors are elected and
qualified and assume office in accordance with *RCW
29.04.170; and (b) the other person who is elected shall be
elected to a two-year term of office if the election is held in
an odd-numbered year, or a one-year term of office if the
election is held in an even-numbered year, and shall hold
office until a successor is elected and qualified and assumes
office in accordance with *RCW 29.04.170.
(4) The terms of office of the initial port commissioners
in all other port districts shall be staggered as follows: (a)
The person who is elected receiving the greatest number of
votes shall be elected to a six-year term of office if the election is held in an odd-numbered year or to a five-year term of
office if the election is held in an even-numbered year, and
shall hold office until a successor is elected and qualified and
assumes office in accordance with *RCW 29.04.170; (b) the
person who is elected receiving the next greatest number of
votes shall be elected to a four-year term of office if the election is held in an odd-numbered year or to a three-year term
of office if the election is held in an even-numbered year, and
shall hold office until a successor is elected and qualified and
assumes office in accordance with *RCW 29.04.170; and (c)
the other person who is elected shall be elected to a two-year
term of office if the election is held in an odd-numbered year
or a one-year term of office if the election is held in an evennumbered year, and shall hold office until a successor is
elected and qualified and assumes office in accordance with
*RCW 29.04.170.
(5) The initial port commissioners shall take office
immediately after being elected and qualified, but the length
of their terms shall be calculated from the first day in January
in the year following their elections. [1994 c 223 § 85. Prior:
1992 c 146 § 2; (1992 c 146 § 14 repeal deleted by 1994 c 223
§ 93); 1979 ex.s. c 126 § 34; 1951 c 68 § 2; prior: (i) 1935 c
133 § 2; RRS § 9691A-2. (ii) 1935 c 133 § 3; RRS § 9691A3. (iii) 1935 c 133 § 4; RRS § 9691A-4. (iv) 1935 c 133 § 5;
RRS § 9691A-5. (v) 1935 c 133 § 6; RRS § 9691A-6. (vi)
1935 c 133 § 7; RRS § 9691A-7.]
*Reviser's note: RCW 29.04.170 was recodified as RCW 29A.20.040
pursuant to 2003 c 111 § 2401, effective July 1, 2004.
of voters of the port district proposing the reduction in terms
of office, which petition has been signed by voters of the port
district equal in number to at least ten percent of the number
of voters in the port district voting at the last general election.
The petition shall be submitted to the county auditor. If the
petition was signed by sufficient valid signatures, the ballot
proposition shall be submitted at the next general or special
election that occurs sixty or more days after the adoption of
the resolution or submission of the petition.
If the ballot proposition reducing the terms of office of
port commissioners is approved by a simple majority vote of
the voters voting on the proposition, the commissioner or
commissioners who are elected at that election shall be
elected to four-year terms of office. The terms of office of the
other commissioners shall not be reduced, but each successor
shall be elected to a four-year term of office. [1994 c 223 §
89; 1992 c 146 § 3.]
53.12.221
53.12.221 Terms—Districts covering entire county
with populations of one hundred thousand or more. Port
commissioners of county-wide port districts with populations
of one hundred thousand or more who are holding office as of
June 11, 1992, shall retain their positions for the remainder of
their terms until their successors are elected and qualified,
and assume office in accordance with *RCW 29.04.170.
Their successors shall be elected to four-year terms of office
except as otherwise provided in RCW 53.12.130. [1992 c
146 § 4.]
*Reviser's note: RCW 29.04.170 was recodified as RCW 29A.20.040
pursuant to 2003 c 111 § 2401, effective July 1, 2004.
53.12.245
53.12.245 Organization of commission—Powers and
duties—Record of proceedings. The port commission shall
organize by the election of its own members of a president
and secretary, shall by resolution adopt rules governing the
transaction of its business and shall adopt an official seal. All
proceedings of the port commission shall be by motion or resolution recorded in a book or books kept for such purpose,
which shall be public records. [1955 c 348 § 6.]
Severability—1955 c 348: See note following RCW 53.08.120.
Public records: Title 40 RCW, chapter 42.17 RCW.
53.12.246
53.12.246 Quorum. A majority of the persons holding
the office of port commissioner at any time shall constitute a
quorum of the port commission for the transaction of business, and the concurrence of a majority of the persons holding such office at the time shall be necessary and shall be sufficient for the passage of any resolution, but no business shall
be transacted unless there are in office at least a majority of
the full number of commissioners fixed by law. [1959 c 17 §
12. Prior: 1913 c 62 § 2, part; 1911 c 92 § 3, part; RRS §
9690.]
Purpose—1979 ex.s. c 126: See RCW 29A.20.040(1).
53.12.260
53.12.175
53.12.175 Reducing port commissioner terms—Ballot proposition. A ballot proposition to reduce the terms of
office of port commissioners from six years to four years
shall be submitted to the voters of any port district that otherwise would have commissioners with six-year terms of office
upon either resolution of the port commissioners or petition
[Title 53 RCW—page 22]
53.12.260 Compensation. (1) Each commissioner of a
port district shall receive seventy dollars per day or portion
thereof spent (a) in actual attendance at official meetings of
the port district commission, or (b) in performance of other
service in behalf of the district. The total per diem compensation of a port commissioner shall not exceed six thousand
seven hundred twenty dollars in a year, or eight thousand four
(2004 Ed.)
Revision of Commissioner Districts
hundred dollars in any year for a port district with gross operating income of twenty-five million or more in the preceding
calendar year.
(2) Port commissioners shall receive additional compensation as follows: (a) Each commissioner of a port district
with gross operating revenues of twenty-five million dollars
or more in the preceding calendar year shall receive a salary
of five hundred dollars per month; and (b) each commissioner of a port district with gross operating revenues of from
one million dollars to less than twenty-five million dollars in
the preceding calendar year shall receive a salary of two hundred dollars per month.
(3) In lieu of the compensation specified in this section,
a port commission may set compensation to be paid to commissioners.
(4) For any commissioner who has not elected to become
a member of public employees retirement system before May
1, 1975, the compensation provided pursuant to this section
shall not be considered salary for purposes of the provisions
of any retirement system created pursuant to the general laws
of this state nor shall attendance at such meetings or other
service on behalf of the district constitute service as defined
in RCW 41.40.010(9): PROVIDED, That in the case of a
port district when commissioners are receiving compensation
and contributing to the public employees retirement system,
these benefits shall continue in full force and effect notwithstanding the provisions of RCW 53.12.260 and 53.12.265.
[1998 c 121 § 3; 1992 c 146 § 12; 1985 c 330 § 3; 1975 1st
ex.s. c 187 § 1.]
53.18.010
sioner district boundaries as provided in *chapter 29.70 RCW
at any time and submit the redrawn boundaries to the county
auditor if the port district is not coterminous with a county
that has the same number of county legislative authority districts as the port has port commissioners. The new commissioner districts shall be used at the next election at which a
port commissioner is regularly elected that occurs at least one
hundred eighty days after the redrawn boundaries have been
submitted. Each commissioner district shall encompass as
nearly as possible the same population. [1994 c 223 § 90;
1992 c 146 § 10.]
*Reviser's note: Chapter 29.70 RCW was recodified as chapter 29A.76
RCW pursuant to 2003 c 111 § 2401, effective July 1, 2004.
53.16.020
53.16.020 Notice of hearing on revision. The revision
of boundary lines provided for in this chapter shall be made
only at a meeting of the board of port commissioners with
attendance of all of the members of the commission, which
meeting shall be public, following notice of said meeting, and
the purpose thereof published in a newspaper of general circulation within the port district, or, if there be no such newspaper published within the district, in a newspaper published
at the county seat of the county in which such port district is
located. Such notice shall be published not less than twice,
the date of the first publication to be not less than fifteen nor
more than twenty days prior to the date fixed for said hearing,
and shall state the time, place and purpose of the hearing.
[1933 c 145 § 3; RRS § 9708-3.]
53.16.030
53.12.265 Waiver of compensation. A commissioner
of any port district may waive all or any portion of his compensation payable under RCW 53.12.260 as to any month or
months during his term of office, by a written waiver filed
with the secretary of the commission. The waiver, to be effective, must be filed any time after the commissioner's election
and prior to the date on which said compensation would otherwise be paid. The waiver shall specify the month or period
of months for which it is made. [1975 1st ex.s. c 187 § 2.]
53.12.265
53.16.030 Change not to affect term of office. Any
change of boundary lines provided for in this chapter shall
not affect the term for which a commissioner shall hold office
at the time the change is made. [1992 c 146 § 11; 1933 c 145
§ 4; RRS § 9704-8.]
Chapter 53.18 RCW
EMPLOYMENT RELATIONS—COLLECTIVE
BARGAINING AND ARBITRATION
Chapter 53.18
Sections
53.12.270 Delegation of powers to managing official
of port district. The commission may delegate to the managing official of a port district such administerial powers and
duties of the commission as it may deem proper for the efficient and proper management of port district operations. Any
such delegation shall be authorized by appropriate resolution
of the commission, which resolution must also establish
guidelines and procedures for the managing official to follow. [1975 1st ex.s. c 12 § 1.]
53.12.270
Chapter 53.16 RCW
REVISION OF COMMISSIONER DISTRICTS
Chapter 53.16
Sections
53.16.015
53.16.020
53.16.030
Redrawing commissioner district boundaries—Conditions.
Notice of hearing on revision.
Change not to affect term of office.
53.16.015 Redrawing commissioner district boundaries—Conditions. The port commission of a port district
that uses commissioner districts may redraw the commis53.16.015
(2004 Ed.)
53.18.010
53.18.015
53.18.020
53.18.030
53.18.040
53.18.050
53.18.060
Definitions.
Application of public employees' collective bargaining act.
Agreements authorized.
Criteria for choice of employee organization—Procedures for
resolution of controversy.
Incidental powers of district.
Agreements—Authorized provisions.
Restraints on agreement.
53.18.010
53.18.010 Definitions. "Port district" shall mean a
municipal corporation of the state of Washington created pursuant to Title 53 RCW. Said port districts may also be hereinafter referred to as the "employer."
"Employee" shall include all port employees except
managerial, professional, and administrative personnel, and
their confidential assistants.
"Employee organization" means any lawful association,
labor organization, union, federation, council, or brotherhood, having as its primary purpose the representation of
employees on matters of employment relations.
"Employment relations" includes, but is not limited to,
matters concerning wages, salaries, hours, vacation, sick
[Title 53 RCW—page 23]
53.18.015
Title 53 RCW: Port Districts
leave, holiday pay and grievance procedures. [1967 c 101 §
1.]
53.18.015
53.18.015 Application of public employees' collective
bargaining act. Port districts and their employees shall be
covered by the provisions of chapter 41.56 RCW except as
provided otherwise in this chapter. [1983 c 287 § 1.]
Severability—1983 c 287: See note following RCW 41.56.450.
53.18.020
53.18.020 Agreements authorized. Port districts may
enter into labor agreements or contracts with employee organizations on matters of employment relations: PROVIDED,
That nothing in this chapter shall be construed to authorize
any employee, or employee organization to cause or engage
in a strike or stoppage of work or slowdown or similar activity against any port district. [1967 c 101 § 2.]
contract interpretation and the settlement of jurisdictional
disputes. [1967 c 101 § 5.]
53.18.060
53.18.060 Restraints on agreement. No labor agreement or contract entered into by a port district shall:
(1) Restrict the right of the port district in its discretion to
hire;
(2) Limit the right of the port to secure its regular or
steady employees from the local community; and
(3) Include within the same agreements: (a) Port security personnel, or (b) port supervisory personnel. [1967 c 101
§ 6.]
Chapter 53.20
Chapter 53.20 RCW
HARBOR IMPROVEMENTS
Sections
53.18.030
53.18.030 Criteria for choice of employee organization—Procedures for resolution of controversy. In determining which employee organization will represent them,
employees shall have maximum freedom in exercising their
right of self-organization.
Controversies as to the choice of employee organization
within a port shall be submitted to the public employment
relations commission. Employee organizations may agree
with the port district to independently resolve jurisdictional
disputes: PROVIDED, That when no other procedure is
available the procedures of RCW 49.08.010 shall be followed
in resolving such disputes. In such case the chairman of the
public employment relations commission shall, at the request
of any employee organization, arbitrate any dispute between
employee organizations and enter a binding award in such
dispute. [1975 1st ex.s. c 296 § 38; 1967 c 101 § 3.]
Effective date—1975 1st ex.s. c 296: See RCW 41.58.901.
Powers and duties of public employment relations commission: Chapter
41.58 RCW.
53.18.040
53.18.040 Incidental powers of district. Port districts
exercising the authority granted by RCW 53.18.020 may take
any of the following actions as incidental thereto: Make necessary expenditures; act jointly with other ports or employers; engage technical assistance; make appearances before
and utilize the services of state or federal agencies, boards,
courts, or commissions; make retroactive payments of wages
where provided by agreements; and exercise all other necessary powers to carry this chapter into effect, including the
promulgation of rules and regulations to effectuate the purposes of this chapter. [1967 c 101 § 4.]
53.18.050
53.18.050 Agreements—Authorized provisions. A
labor agreement signed by a port district may contain:
(1) Provisions that the employee organization chosen by
a majority of the employees in a grouping or unit will be recognized as the representative of all employees in the classification included in such grouping or unit;
(2) Maintenance of membership provisions including
dues check-off arrangements; and
(3) Provisions providing for binding arbitration, the
expenses being equally borne by the parties, in matters of
[Title 53 RCW—page 24]
53.20.010
53.20.020
53.20.030
53.20.040
53.20.050
Adoption of harbor improvement plan.
Improvement to follow plans adopted.
Improvements—Ownership of.
Fifty percent of cost of local improvement may be paid from
general fund.
Local improvements upon majority petition.
Joint improvement of navigable rivers: RCW 88.32.240 and 88.32.250.
53.20.010
53.20.010 Adoption of harbor improvement plan. It
shall be the duty of the port commission of any port district,
before creating any improvements hereunder, to adopt a comprehensive scheme of harbor improvement in the port district,
after a public hearing thereon, of which notice shall be published once a week for two consecutive weeks in a newspaper
of general circulation in the port district, and no expenditure
for the carrying on of any harbor improvements shall be made
by the port commission other than the necessary salaries,
including engineers, clerical and office expenses of the port
district, and the cost of engineering, surveying, preparation
and collection of data necessary for the making and adoption
of a general scheme of harbor improvements in the port district, unless and until the comprehensive scheme of harbor
improvement has been so officially adopted by the port commission. [1985 c 469 § 51; 1943 c 166 § 3; 1913 c 62 § 6;
1911 c 92 § 6; Rem. Supp. 1943 § 9694.]
53.20.020
53.20.020 Improvement to follow plans adopted.
When such general plans shall have been adopted or
approved, as aforesaid, every improvement to be made by
said commission shall be made substantially in accordance
therewith unless and until such general plans shall have been
officially changed by the port commission after a public hearing thereon, of which at least ten days' notice shall be published in a newspaper in general circulation in such port district. [1947 c 24 § 1; 1913 c 62 § 7; 1911 c 92 § 7; Rem.
Supp. 1947 § 9695.]
53.20.030
53.20.030 Improvements—Ownership of. No
improvements shall be acquired or constructed, by the port
district, unless such improvements shall, when completed, be
the property of such port district, the county in which such
port district is located, any city within such port district, the
state of Washington or the United States of America, and the
funds of such port district may be expended in the acquire(2004 Ed.)
Industrial Development Districts—Marginal Lands
ment or construction of any harbor improvement embraced in
such general plan adopted as in this chapter provided in conjunction with the county in which such port district is located,
any city in such port district, the state of Washington or the
United States of America, or all or any of them. [1979 ex.s. c
30 § 9; 1913 c 62 § 8; 1911 c 92 § 8; RRS § 9696.]
53.20.040
53.20.040 Fifty percent of cost of local improvement
may be paid from general fund. Whenever any improvement shall be ordered, payment for which shall be made in
part from assessments against property specially benefited,
not more than fifty percent of the cost thereof shall ever be
borne by the entire port district, nor shall any sum be contributed by it to any improvement acquired or constructed with or
by any other body, exceed [exceeding] such amount, unless a
majority vote of the electors of the port district shall consent
to or ratify the making of such expenditure. [1911 c 92 § 11;
RRS § 9698.]
53.20.050
53.20.050 Local improvements upon majority petition. Whenever a petition signed by one hundred freeholders
in the district to be therein described, shall be filed with the
port commission, asking that any portion of the general plan
adopted be ordered, and defining the boundaries of a local
improvement district to be assessed in whole or in part to pay
the cost thereof, it shall be the duty of the port commission to
fix a date for hearing on the petition, after which it may alter
the boundaries of the proposed district and prepare and adopt
detail plans of any such local improvement, declare the estimated cost thereof, what proportion of the cost shall be borne
by the proposed local improvement district, and what proportion of the cost, if any, but in any event not to exceed fifty
percent, shall be borne by the entire port district. At any time
within two years thereafter, upon petition of the owners of a
majority of the lands in the proposed local improvement district, fixed by the port commission, as shown in the office of
the auditor of the county, asking that the improvement be
ordered, the port commission shall forthwith by resolution
order the improvement, provide the general funds of the port
district to be applied thereto, acquire all lands necessary
therefor, pay all damages caused thereby, and commence in
the name of the port district such eminent domain proceedings and supplemental assessment or reassessment proceedings to pay all eminent domain awards as may be necessary to
entitle the port district to proceed with such work, and shall
thereafter proceed with the work, and shall make and file
with the county treasurer its roll levying special assessments
in the amount to be paid by special assessment against the
property situated within the local improvement district in
proportion to the special benefits to be derived by the property in the local improvement district from the improvement.
Before the approval of the roll a notice shall be published
once a week for two consecutive weeks in one or more newspapers of general circulation in the local improvement district, stating that the roll is on file and open to inspection in
the office of the clerk of the port commission, and fixing a
time not less than fifteen nor more than thirty days from the
date of the first publication of the notice within which protests must be filed with the clerk of the port commission
against any assessments shown thereon, and fixing a time
(2004 Ed.)
53.25.010
when a hearing shall be held by the commission on the protests. After the hearing the port commission may alter any
and all assessments shown on the roll and may then by resolution approve the same, but in the event of any assessment
being raised a new notice similar to the first notice shall be
given, after which final approval of the roll may be made by
the port commission. Any person feeling aggrieved by any
such assessments shall perfect an appeal to the superior court
of the county within ten days after the approval in the manner
now provided by law for appeals from assessments levied by
cities of the first class in this state. Engineering and office
expenses in all cases shall be borne by the general district.
[1985 c 469 § 52; 1911 c 92 § 10; RRS § 9697. Formerly
RCW 53.20.050 through 53.20.080.]
Appeal from assessments: RCW 35.44.200 through 35.44.270.
Special assessments for local improvement: State Constitution Art. 7 § 9.
Chapter 53.25 RCW
INDUSTRIAL DEVELOPMENT DISTRICTS—
MARGINAL LANDS
Chapter 53.25
Sections
53.25.010
53.25.020
53.25.030
53.25.040
53.25.050
53.25.060
53.25.070
53.25.080
53.25.090
53.25.100
53.25.110
53.25.120
53.25.130
53.25.140
53.25.150
53.25.160
53.25.170
53.25.190
53.25.200
53.25.210
53.25.900
53.25.910
Marginal lands—Declaration of policies and purposes.
Marginal lands—Further declaration.
"Marginal lands" defined.
Industrial development districts authorized—Boundaries—
Deletion of land area.
Tax title lands may be conveyed to district.
Private lands may be conveyed to district—Cancellation of
taxes.
Discharge of trust.
When lands revert to county.
Conditions precedent to making improvements.
Powers as to industrial development districts.
Sale authorized in industrial development district.
Notice of hearing on sale—Hearing—Plans and specifications—Conditions—Devotion of property to public use.
Findings and determination—Record—Appeal.
Action on determination—Sale by competitive bid or negotiation.
Competitive bids—Conditions—Acceptance.
Devotion of property to intended use—Remedy—Restraint on
alienation.
Covenant running with the land—Forfeiture.
Eminent domain.
Advances of general fund moneys or credit.
Determination that land sought by eminent domain is marginal.
Repeal and saving.
Severability—1955 c 73.
53.25.010 Marginal lands—Declaration of policies
and purposes. It is hereby declared to be the public policy of
the legislature of the state of Washington, that it is in the public interest to employ the power of eminent domain and
advance and expend public moneys for the purposes herein
contained, and to provide for means by which marginal area
properties may be developed or redeveloped in accordance
with the legislative policies hereinafter stated:
(1) A sound development of the economic security of the
peoples of the state of Washington is dependent upon proper
development and redevelopment of marginal properties, and
the general welfare of the inhabitants of the port districts in
which they exist require the remedying of such injurious conditions marginal properties are now subjected to; and
(2) The development and redevelopment of such marginal area properties cannot be accomplished by private
enterprise alone without public participation and assistance in
53.25.010
[Title 53 RCW—page 25]
53.25.020
Title 53 RCW: Port Districts
the acquisition of land and planning and in the financing of
land assembly in the work of clearance, development and
redevelopment, and in the making of improvements necessary therefor.
(3) To protect and promote sound development and redevelopment of marginal lands as hereinafter defined, and the
general welfare of the inhabitants of the port districts in
which they exist, to remedying such injurious conditions
through the employment of all appropriate means.
(4) That whenever the development or redevelopment of
such marginal lands cannot be accomplished by private enterprise alone, without public participation and assistance in the
acquisition of land and planning and in financing of land
assembly in the work of clearance, development and redevelopment, and in the making of improvements necessary therefor, it is in the public interest to employ the power of eminent
domain, to advance and expend public moneys for those purposes, and to provide for means by which such marginal
lands may be developed or redeveloped.
(5) That the development or redevelopment of such marginal lands and the provision of appropriate continuing land
use constitute public uses and purposes for which public
moneys may be advanced or expended and private property
acquired, and are governmental functions and are of state
concern in the interest of health, safety and welfare of the
state of Washington, and of the communities in which such
areas exist.
(6) That the necessity in the public interest for the provision of this chapter is declared to be a matter of legislative
determination. [1955 c 73 § 1.]
53.25.020
53.25.020 Marginal lands—Further declaration. It is
further found and declared that:
(1) The existence of such marginal lands characterized
by any or all of such conditions constitutes a serious and
growing menace which is condemned as injurious and inimical to the public health, safety, and welfare of the people of
the communities in which they exist and of the people of the
state.
(2) Such marginal lands present difficulties and handicaps which are beyond remedy and control solely by regulatory processes in the exercise of the police power.
(3) They contribute substantially and increasingly to the
problems of, and necessitate excessive and disproportionate
expenditures for, crime prevention, correction, prosecution
and punishment, the treatment of juvenile delinquency, the
preservation of the public health and safety, and the maintaining of adequate police, fire and accident protection and other
public services and facilities.
(4) This menace is becoming increasingly direct and substantial in its significance and effect.
(5) The benefits which will result from the remedying of
such conditions and the redevelopment of such marginal
lands will accrue to all the inhabitants and property owners of
the communities in which they exist.
(6) Such conditions of marginal lands tend to further
obsolescence, deterioration, and disuse because of the lack of
incentive to the individual landowner and his inability to
improve, modernize, or rehabilitate his property while the
condition of the neighboring properties remains unchanged.
[Title 53 RCW—page 26]
(7) As a consequence the process of deterioration of such
marginal lands frequently cannot be halted or corrected
except by redeveloping the entire area, or substantial portions
of it.
(8) Such conditions of marginal lands are chiefly found
in areas subdivided into small parcels, held in divided and
widely scattered ownerships, frequently under defective
titles, and in many such instances the private assembly of the
land areas for redevelopment is so difficult and costly that it
is uneconomic and as a practical matter impossible for owners to undertake because of lack of the legal power and excessive costs.
(9) The remedying of such conditions may require the
public acquisition at fair prices of adequate areas, the redevelopment of the areas suffering from such conditions under
proper supervision, with appropriate planning, and continuing land use.
(10) The development or redevelopment of land, or both,
acquired under the authority of this chapter constitute a public use and are governmental functions, and that the sale or
leasing of such land after the same has been developed or
redeveloped is merely incidental to the accomplishment of
the real or fundamental purpose, that is, to remove the condition which caused said property to be marginal property as in
this chapter defined. [1955 c 73 § 2.]
53.25.030 "Marginal lands" defined. "Marginal
lands" is defined and characterized by any one or more of the
following described conditions:
(1) An economic dislocation, deterioration, or disuse
resulting from faulty planning.
(2) The subdividing and sale of lots of irregular form and
shape and inadequate size for proper usefulness and development.
(3) The laying out of lots in disregard of the contours and
other physical characteristics of the ground and surrounding
conditions.
(4) The existence of inadequate streets, open spaces, and
utilities.
(5) The existence of lots or other areas which are subject
to being submerged by water.
(6) By a prevalence of depreciated values, impaired
investments, and social and economic maladjustment to such
an extent that the capacity to pay taxes is reduced and tax
receipts are inadequate for the cost of public services rendered.
(7) In some parts of marginal lands, a growing or total
lack of proper utilization of areas, resulting in a stagnant and
unproductive condition of land potentially useful and valuable for contributing to the public health, safety and welfare.
(8) In other parts of marginal lands, a loss of population
and reduction of proper utilization of the area, resulting in its
further deterioration and added costs to the taxpayer for the
creation of new public facilities and services elsewhere.
(9) Property of an assessed valuation of insufficient
amount to permit the establishment of a local improvement
district for the construction and installation of streets, walks,
sewers, water and other utilities.
(10) Lands within an industrial area which are not
devoted to industrial use but which are necessary to industrial
development within the industrial area. [1955 c 73 § 3.]
53.25.030
(2004 Ed.)
Industrial Development Districts—Marginal Lands
53.25.040
53.25.040 Industrial development districts authorized—Boundaries—Deletion of land area. (1) A port
commission may, after a public hearing thereon, of which at
least ten days' notice shall be published in a newspaper of
general circulation in the port district, create industrial development districts within the district and define the boundaries
thereof, if it finds that the creation of the industrial development district is proper and desirable in establishing and
developing a system of harbor improvements and industrial
development in the port district.
(2) The boundaries of an industrial development district
created by subsection (1) of this section may be revised from
time to time by resolution of the port commission, to delete
land area therefrom, if the land area to be deleted was
acquired by the port district with its own funds or by gift or
transfer other than pursuant to RCW 53.25.050 or 53.25.060.
As to any land area to be deleted under this subsection
that was acquired or improved by the port district with funds
obtained through RCW 53.36.100, the port district shall
deposit funds equal to the fair market value of the lands and
improvements into the fund for future use described in RCW
53.36.100 and such funds shall be thereafter subject to RCW
53.36.100. The fair market value of the land and improvements shall be determined as of the effective date of the port
commission action deleting the land from the industrial
development district and shall be determined by an average
of at least two independent appraisals by professionally designated real estate appraisers as defined in RCW 74.46.020 or
licensed real estate brokers. The funds shall be deposited into
the fund for future use described in RCW 53.36.100 within
ninety days of the effective date of the port commission
action deleting the land area from the industrial district. Land
areas deleted from an industrial development district under
this subsection shall not be further subject to the provisions of
this chapter. This subsection shall apply to presently existing
and future industrial development districts. Land areas
deleted from an industrial development district under this
subsection that were included within such district for less
than two years, if the port district acquired the land through
condemnation or as a consequence of threatened condemnation, shall be offered for sale, for cash, at the appraised price,
to the former owner of the property from whom the district
obtained title. Such offer shall be made by certified or registered letter to the last known address of the former owner.
The letter shall include the appraised price of the property
and notice that the former owner must respond in writing
within thirty days or lose the right to purchase. If this right to
purchase is exercised, the sale shall be closed by midnight of
the sixtieth day, including nonbusiness days, following close
of the thirty-day period. [1989 c 167 § 1; 1985 c 469 § 53;
1955 c 73 § 4. Prior: 1943 c 166 § 1; 1939 c 45 § 1; Rem.
Supp. 1943 § 9709-1; RCW 53.24.010.]
53.25.050
53.25.050 Tax title lands may be conveyed to district.
Any lands in an industrial development district acquired by
the county by tax foreclosure, may, if the county commissioners deem the lands chiefly valuable for industrial development purposes, be conveyed to the port district. The lands
shall be held in trust by the port district and may be managed,
developed, leased, or sold by it as provided in this chapter.
(2004 Ed.)
53.25.090
From the proceeds of the sale or lease of the lands, the
district shall first reimburse itself for any expense incurred by
it in managing and developing the lands and any balance shall
be paid to the county, which shall distribute it the same as
general taxes collected in that year. [1955 c 73 § 5. Prior:
1939 c 45 § 2; RRS § 9709-2; RCW 53.24.020.]
53.25.060
53.25.060 Private lands may be conveyed to district—Cancellation of taxes. With the approval of the
county commissioners, any lands in an industrial development district, owned privately, which the port commission
deems valuable for industrial development purposes, may be
deeded to and accepted by the port district, subject to delinquent general taxes thereon. When the commission has
recorded the deed and notified the county commissioners
thereof, the county commissioners shall order all taxes
assessed against the lands canceled and the county treasurer
shall record the cancellation, and remove the lands from the
tax rolls. Thereafter the lands shall be held in trust, managed,
developed, leased, and sold by the district, and the proceeds
therefrom disposed of in the same manner as hereinabove
provided. [1955 c 73 § 6. Prior: 1939 c 45 § 3; RRS § 97093; RCW 53.24.030.]
53.25.070
53.25.070 Discharge of trust. With the approval of the
county commissioners, a port district may free any lands
acquired by it pursuant to this chapter from the trust imposed
upon it herein, by paying to the county the amount of the
delinquent taxes against the land at the time the county
acquired it by tax foreclosure, or the amount of the delinquent
taxes against it when it was conveyed to the district by the
private owner. [1955 c 73 § 7. Prior: 1939 c 45 § 4; RRS §
9709-4; RCW 53.24.040.]
53.25.080
53.25.080 When lands revert to county. Ten years
from the date of its acquisition, property acquired by a port
district pursuant to this chapter shall revert to the county to be
used the same as property acquired by tax foreclosure, and
upon demand by the county commissioners the port commission shall convey the property to the county, unless before the
expiration of the ten year period, the port district has adopted
a comprehensive plan of harbor improvement which provides
for the improvement of an industrial development district
which includes such lands or the district has freed the land
from the trust imposed upon it as provided in this chapter.
[1955 c 73 § 8. Prior: 1939 c 45 § 8; RRS § 9709-8; RCW
53.24.050.]
53.25.090
53.25.090 Conditions precedent to making improvements. No expenditure for improvement of property in an
industrial development district, other than the expense of preparing and submitting a plan of improvement shall be made
by a port district, and no property shall be acquired by it
therefor except as provided for hereinbefore until it has been
made a part of the comprehensive scheme of harbor improvements and industrial developments or amendments thereto.
That said comprehensive scheme or amendments thereto
shall provide for the development or redevelopment of those
marginal lands acquired and a provision for the continuing of
the land uses which are hereby declared to constitute public
[Title 53 RCW—page 27]
53.25.100
Title 53 RCW: Port Districts
uses and the purposes for which public moneys may be
advanced and provide property acquired. [1955 c 73 § 9.
Prior: 1939 c 45 § 5; RRS § 9709-5; RCW 53.24.060.]
53.25.100
53.25.100 Powers as to industrial development districts. All port districts wherein industrial development districts have been established are authorized and empowered to
acquire by purchase or condemnation or both, all lands, property and property rights necessary for the purpose of the
development and improvement of such industrial development district and to exercise the right of eminent domain in
the acquirement or damaging of all lands, property and property rights and the levying and collecting of assessments
upon property for the payment of all damages and compensation in carrying out the provisions for which said industrial
development district has been created; to develop and
improve the lands within such industrial development district
to make the same suitable and available for industrial uses
and purposes; to dredge, bulkhead, fill, grade, and protect
such property; to provide, maintain, and operate water, light,
power and fire protection facilities and services, streets,
roads, bridges, highways, waterways, tracks, and rail and
water transfer and terminal facilities and other harbor and
industrial improvements; to execute leases of such lands or
property or any part thereof; to establish local improvement
districts within such industrial development districts which
may, but need not, be coextensive with the boundaries
thereof, and to levy special assessments, under the mode of
annual installments, over a period not exceeding ten years, on
all property specially benefited by any local improvement, on
the basis of special benefits, to pay in whole or in part the
damages or costs of any improvement ordered in such local
improvement district; to issue local improvement bonds in
any such local improvement district; to be repaid by the collection of local improvement assessments; and generally to
exercise with respect to and within such industrial development districts all the powers now or hereafter conferred by
law upon port districts in counties with a population of one
hundred twenty-five thousand or more: PROVIDED, That
the exercise of powers hereby authorized and granted shall be
in the manner now and hereafter provided by the laws of the
state for the exercise of such powers by port districts under
the general laws relating thereto insofar as the same shall not
be inconsistent with this chapter. [1991 c 363 § 132; 1955 c
73 § 10. Prior: 1939 c 45 § 6; RRS § 9709-6; RCW
53.24.070.]
Purpose—Captions not law—1991 c 363: See notes following RCW
2.32.180.
53.25.120
53.25.120 Notice of hearing on sale—Hearing—Plans
and specifications—Conditions—Devotion of property to
public use. The port commission shall give notice of the proposed sale by publication in a newspaper of general circulation in the county, and by posting in three public places in the
port district at least ten days before the date fixed for the hearing thereon.
The notice shall describe the property to be sold and state
that at the time and place specified therein, the commission
will meet at its usual meeting place, designating it, to hear
and determine the advisability of the sale.
The hearing shall be held not more than twenty days
from the publication of notice. At the hearing the commission
shall hear the reasons of any taxpayer in the port district, for
or against the sale.
No sales shall be made, however, of the property of any
industrial development district until the purchaser thereof
shall have submitted to the port commission plans and specifications for the development of the property, and the plans
and specifications shall be approved in writing before the
property shall be conveyed, and the conditions upon which
the properties are conveyed shall be set forth in the instrument conveying title thereof with the further condition that
all of the conditions set forth shall be covenants running with
the land. All properties acquired in the manner herein set
forth shall be devoted to the public use herein provided for.
[1985 c 469 § 54; 1963 c 138 § 1; 1955 c 73 § 12. Prior: 1939
c 45 § 10; RRS § 9709-10; RCW 53.28.020.]
Validating—1963 c 138: "All sales made prior to the effective date of
this amendatory act which are otherwise valid except for compliance with
the limitation in section 12, chapter 73, Laws of 1955, which provided that
the hearing shall be held not more than ten days from the publication of
notice, are hereby ratified and validated.
All sales made prior to the effective date of this amendatory act under
the provisions of section 18, chapter 73, Laws of 1955 and RCW 53.25.180
are hereby ratified and validated." [1963 c 138 § 3.]
53.25.130
53.25.130 Findings and determination—Record—
Appeal. Within three days after the hearing the commission
shall make its findings and determination on the advisability
of making the sale and enter its determination in its records.
Any aggrieved party may appeal the determination of the
commission by filing appeal with the superior court of the
county in which the district is located within twenty days of
the entry of the determination but no appeal shall be allowed
except on the grounds that the action of the commission was
arbitrary, capricious, or unlawful. [1955 c 73 § 13. Prior:
1939 c 45 § 11; RRS § 9709-11; RCW 53.28.030.]
53.25.140
Eminent domain: State Constitution Art. 1 § 16 (Amendment 9); Title 8
RCW.
53.25.110
53.25.110 Sale authorized in industrial development
district. When a port commission deems it for the best interests of the district and the people thereof and in furtherance of
its general plan of harbor improvement, or industrial development, or both, it may sell and convey any property or part
thereof owned by it within an industrial district. This section
shall not be limited by chapter 53.08 RCW, pertaining to
powers of port districts. [1955 c 73 § 11. Prior: 1939 c 45 §
9; RRS § 9709-9; RCW 53.28.010.]
Harbor improvement plan: RCW 53.20.010.
[Title 53 RCW—page 28]
53.25.140 Action on determination—Sale by competitive bid or negotiation. If the determination is against the
sale, all proceedings thereon shall terminate. If the commission determines in favor of the sale by at least a two-thirds
vote of the full commission, it shall in its discretion, either
enter an order fixing a period, not less than twenty nor more
than thirty days from the date of the order, during which bids
will be received for the property or any part thereof, and give
notice thereof in the same manner as for the hearing on the
proposal to sell or negotiate the sale with an appropriate purchaser, provided that in any such negotiated sale the purchase
price must not be less than the fair market value of the property which shall be determined by an average of at least two
(2004 Ed.)
Trade Center Act
independent appraisals performed by licensed real estate brokers or professionally designated real estate appraisers as
defined in RCW 74.46.020. Whether the property is sold by
competitive bidding or negotiation, other real property conveyed by the purchaser to the commission may constitute all
or a portion of the consideration for the sale. [1984 c 195 § 1;
1955 c 73 § 14. Prior: 1939 c 45 § 12; RRS § 9709-12; RCW
53.28.040.]
53.29.010
same procedure as in or may be provided by law for cities of
the first class except insofar as such duties may be inconsistent with the provisions of this chapter and the duties devolving upon the city treasurer under said law be and the same are
hereby imposed upon the county treasurer for the purposes of
this chapter. [1955 c 73 § 19.]
Eminent domain: State Constitution Art. 1 § 16 (Amendment 9).
Eminent domain by cities: Chapter 8.12 RCW.
53.25.150
53.25.150 Competitive bids—Conditions—Acceptance. If the commission chooses to sell the property through
competitive bidding under RCW 53.25.140:
(1) Bids may be submitted for the property or any part of
it, shall state the use which the bidder intends to make of it,
and the commission may require the successful bidder to file
additional information as to the intended use, and may
require of him security as assurance that the property will be
used for that purpose;
(2) All sales shall be made to the best bidder, and in
determining the best bid, the commission may also consider
the nature of the proposed use and the relation thereof to the
improvement of the harbor and the business and facilities
thereof;
(3) Within thirty days after the last day for submitting
bids, the commission shall decide which if any bids it
accepts. All sales shall be made upon such terms and conditions as the commission may prescribe. [1984 c 195 § 2;
1955 c 73 § 15. Prior: 1939 c 45 § 13, part; RRS § 9709-13,
part; RCW 53.28.050.]
53.25.200
53.25.200 Advances of general fund moneys or
credit. Port districts are hereby granted the power to advance
their general fund moneys or credit, or both, without interest
to accomplish the objects and purposes of this chapter, which
fund shall be repaid from the sale or lease, or both, of such
developed or redeveloped lands, provided, if the money
advanced for such development or redevelopment was
obtained from the sale of general obligation bonds of the port,
then such advances shall bear the same rate of interest that
said bonds bore. [1955 c 73 § 20.]
53.25.210
53.25.210 Determination that land sought by eminent domain is marginal. The determination that property
sought by eminent domain proceedings is marginal lands as
herein defined is a judicial question, provided that a duly
adopted resolution of the commissioners of the port district
that the property sought is marginal lands as the term is
herein defined, setting forth the characteristics of the lands
sought to be acquired which constitutes the marginal lands as
herein defined, shall be prima facie evidence that such land is
marginal lands as defined in this chapter. [1955 c 73 § 21.]
53.25.160
53.25.160 Devotion of property to intended use—
Remedy—Restraint on alienation. The purchaser shall,
within one year from the date of purchase, devote the property to its intended use, or shall commence work on the
improvements thereon to devote it to such use, and if he fails
to do so, the port commission may cancel the sale and return
the money paid on the purchase price, and title to the property
shall revert to the district. This remedy shall be in addition to
any other remedy under the terms of the sale. No purchaser
shall transfer title to such property within one year from the
date of purchase. [1955 c 73 § 16. Prior: 1939 c 45 § 13, part;
RRS § 9709-13, part; RCW 53.28.060.]
53.25.900
53.25.900 Repeal and saving. Chapter 53.24 RCW and
chapter 53.28 RCW and chapter 45, Laws of 1939, as last
amended by section 1, chapter 166, Laws of 1943 are
repealed: PROVIDED, That nothing herein contained shall
be construed as affecting any existing right acquired under
the provisions of said act. [1955 c 73 § 22.]
53.25.910
53.25.910 Severability—1955 c 73. Should any section
or provision of this chapter be held invalid by any court of
competent jurisdiction, the same shall not affect the validity
of the chapter as a whole or any part thereof other than the
portion held to be invalid. [1955 c 73 § 23.]
53.25.170
53.25.170 Covenant running with the land—Forfeiture. All sales made in accordance with the provisions of this
chapter shall have incorporated in the instrument of conveyance of title the conditions of this chapter relating to the use
of the land as a covenant running with the land. Any violation
of such covenant shall result in a right by the commission, as
grantee, to forfeit the land. [1955 c 73 § 17.]
53.25.190
53.25.190 Eminent domain. All port districts of the
state of Washington which have created or may hereafter create industrial development districts in the manner provided
by law, in addition to all powers possessed by such port districts, be and are hereby granted power of eminent domain to
acquire real property within the limits of such industrial
development district which property is marginal lands as the
term is herein defined. The exercise of the power granted in
this section shall be exercised in the same manner and by the
(2004 Ed.)
Chapter 53.29
Chapter 53.29 RCW
TRADE CENTER ACT
Sections
53.29.010
53.29.015
53.29.020
53.29.030
53.29.900
53.29.910
Declaration of purpose.
Definitions.
Power to establish trade centers—Facilities authorized.
Cooperation with other entities—Annual service fee for support of local government.
Short title—Liberal construction—Powers cumulative.
Severability—1967 c 56.
53.29.010
53.29.010 Declaration of purpose. It is declared to be
the finding of the legislature of the state of Washington that:
(1) The servicing functions and activities connected with
the oceanborne and overseas airborne trade and commerce of
port districts, including customs clearance, shipping negotia[Title 53 RCW—page 29]
53.29.015
Title 53 RCW: Port Districts
tions, cargo routing, freight forwarding, financing, insurance
arrangements and other similar transactions which are presently performed in various, scattered physical and electronic
locations in the districts should be centralized to provide for
more efficient and economical transportation of persons and
more efficient and economical physical or electronic facilities and services for the exchange and buying, selling and
transportation of commodities and other property in world
trade and commerce;
(2) Unification, at a single, centrally located physical or
electronic site of a facility of commerce, i.e., a trade center,
accommodating the functions and activities described in subsection (1) of this section and the appropriate governmental,
administrative and other services connected with or incidental to transportation and security of persons and property and
the promotion and protection of port commerce, and providing a central locale for exhibiting, and otherwise promoting
the exchange and buying and selling of commodities and
property in world trade and commerce, will materially assist
in preserving the material and other benefits of a prosperous
port community;
(3) The undertaking of the aforesaid unified trade center
project by a port district or the Washington public ports association has the single object of preserving, and will aid in the
promotion, security, and preservation of, the economic wellbeing of port districts and the state of Washington and is
found and determined to be a public purpose. [2002 c 145 §
1; 1989 c 425 § 5; 1967 c 56 § 1.]
Findings—Severability—1989 c 425: See notes following RCW
53.06.070.
53.29.015
53.29.015 Definitions. The definitions in this section
apply throughout RCW 53.29.020 and 53.29.030 unless the
context clearly requires otherwise.
(1) "Person" has the same meaning as defined in the electronic signatures in global and national commerce act (15
U.S.C. Sec. 7006 (8)) in effect on June 13, 2002.
(2) "Transaction" has the same meaning as defined in the
electronic signatures in global and national commerce act (15
U.S.C. Sec. 7006 (13)) in effect on June 13, 2002. However,
"transaction" also includes actions relating to governmental
affairs. [2002 c 145 § 4.]
(2) Facilities for the promotion of such import and export
trade and commerce, inspection, testing, display and
appraisal facilities, foreign trade zones, terminal and transportation facilities, office meeting rooms, auditoriums, libraries, language translation services, storage, warehouse, marketing and exhibition facilities, facilities for federal, state,
county and other municipal and governmental agencies providing services relating to the foregoing and including, but
not being limited to, customs houses and customs stores, and
other incidental facilities and accommodations. [2002 c 145
§ 2; 1989 c 425 § 6; 1967 c 56 § 2.]
Findings—Severability—1989 c 425: See notes following RCW
53.06.070.
53.29.030
53.29.030 Cooperation with other entities—Annual
service fee for support of local government. (1) In carrying
out the powers authorized by this chapter and chapter 53.06
RCW, port districts and the Washington public ports association are authorized to cooperate, act, and invest jointly with
other public and private agencies and persons, including, but
not limited to, the federal government, the state, other ports
and municipal corporations, other states and their political
subdivisions, and private nonprofit trade promotion groups
and associate development organizations.
(2) Port districts operating trade center buildings or operating association or federation trade centers, shall pay an
annual service fee to the county treasurer wherein the center
is located for municipal services rendered to the trade center
building. The measure of such service fee shall be equal to
three percent of the gross rentals received from the nongovernmental tenants of such trade center building. Such proceeds shall be distributed by the county treasurer as follows:
Forty percent to the school district, forty percent to the city,
and twenty percent to the county wherein the center is
located: PROVIDED, That if the center is located in an unincorporated area, twenty percent shall be allocated to the fire
district, forty percent to the school district, and forty percent
to the county. [2002 c 145 § 3; 1989 c 425 § 7; 1967 c 56 §
3.]
Findings—Severability—1989 c 425: See notes following RCW
53.06.070.
53.29.900
53.29.020
53.29.020 Power to establish trade centers—Facilities authorized. In addition to all other powers granted to
port districts, any such district, the Washington public ports
association, or the federation of Washington ports as
described in RCW 53.06.070 may acquire, as provided for
other port properties in RCW 53.08.010, construct, develop,
operate and maintain all land or other property interests,
buildings, structures or other improvements, and may participate in transactions necessary to provide, electronically or
otherwise, facilities or to exercise powers or purposes of a
trade center including but not limited to the following electronic or physical facilities:
(1) A facility consisting of one or more structures,
improvements and areas for the centralized accommodation
of public and private agencies, persons and facilities in order
to afford improved service to waterborne and airborne import
and export trade and commerce;
[Title 53 RCW—page 30]
53.29.900 Short title—Liberal construction—Powers
cumulative. This chapter, which may be known and cited as
the "Trade Center Act", shall be liberally construed, its purpose being to provide port districts, and their related association and federation, with additional powers to provide trade
centers and to promote and encourage trade, tourism, travel,
and economic development in a coordinated and efficient
manner through the ports of the state of Washington. The
powers herein granted shall be in addition to all others
granted to port districts. [1989 c 425 § 8; 1967 c 56 § 4.]
Findings—Severability—1989 c 425: See notes following RCW
53.06.070.
53.29.910
53.29.910 Severability—1967 c 56. If any provision of
this chapter, or its application to any person or circumstance
is held invalid, the remainder of the act or the application of
the provision to other persons and circumstances is not
affected. [1967 c 56 § 5.]
(2004 Ed.)
Export Trading Companies
Chapter 53.31
Chapter 53.31 RCW
EXPORT TRADING COMPANIES
Sections
53.31.010
53.31.020
53.31.030
53.31.040
53.31.050
53.31.060
53.31.901
Legislative findings—Intent.
Definitions.
Export trading companies—Authorized—Adoption of business plan.
Export trading companies—Powers—Formation—Dissolution.
Confidentiality of records supplied by private persons.
Certificate of review under federal export trading company
act—Authorized.
Severability—1986 c 276.
53.31.010
53.31.010 Legislative findings—Intent. It is declared
to be the public policy of the state to promote and preserve
the economic well-being of the citizens of this state by creating opportunities for expanded participation in international
trade by state businesses and expanding international trade
through state ports. Increased international trade of state
products creates and retains jobs, increases the state's tax
base, and diversifies the state's economy. Port districts,
through economies of scale, are uniquely situated to promote
and expand international trade and provide greater opportunities for state businesses to participate in international trade.
The legislature finds that significant public benefit, in
the form of increased employment and tax revenues, can be
realized through export trading companies without lending
the credit of port districts, and without capital investment of
public funds by port districts. The legislature finds that the
use of port district funds to promote and establish export trading companies under this chapter constitutes trade promotion
and industrial development within the meaning of Article
VIII, section 8 of the state Constitution.
It is the purpose of this chapter: (1) To stimulate greater
participation by private businesses in international trade; (2)
to authorize port districts to promote and facilitate international trade more actively; (3) to make export services more
widely available; (4) to generate revenue for port districts;
and (5) to develop markets for Washington state goods and
services. Port sponsored export trading companies can also
assist small to medium-sized companies in achieving economies of scale in order to expand into the export market.
It is the intent of this chapter to enhance export trade and
not to create outside competition for existing Washington
state businesses. The primary intent of a port sponsored
export trading company is to increase exports of Washington
state products.
This chapter shall not be construed as modifying or
restricting any other powers granted to port districts by law.
The legislature does not intend by the enactment of this chapter for port districts to use export trading companies to create
unfair competition with private business. [1986 c 276 § 1.]
53.31.040
(2) "Export services" means the following services when
provided in order to facilitate the export of goods or services
through Washington ports: International market research,
promotion, consulting, marketing, legal assistance, trade documentation, communication and processing of foreign orders
to and for exporters and foreign purchasers, financing, and
contracting or arranging for transportation, insurance, warehousing, foreign exchange, and freight forwarding.
(3) "Export trading company" means an entity created by
a port district under RCW 53.31.040.
(4) "Obligations" means bonds, notes, securities, or other
obligations or evidences of indebtedness.
(5) "Person" means any natural person, firm, partnership,
association, private or public corporation, or governmental
entity. [1991 c 363 § 133; 1986 c 276 § 2.]
Purpose—Captions not law—1991 c 363: See notes following RCW
2.32.180.
53.31.030 Export trading companies—Authorized—
Adoption of business plan. (1) Public port districts, formed
under chapter 53.04 RCW are authorized to establish export
trading companies and a company so formed may contract
with other public ports, financial institutions, freight forwarders, and public or private concerns within or outside the state
to carry out the purposes of this chapter. A port district may
participate financially in only one export trading company.
(2) A port district proposing to establish an export trading company shall adopt a business plan with safeguards and
limitations to ensure that any private benefit to be realized
from the use of funds of the export trading company are incidental to the purposes of this chapter. The business plan shall
be adopted only after public hearing and shall be reviewed at
least once every two years. Amendments to the plan shall be
adopted only after public hearing. The business plan shall
include:
(a) A description of export promotion activities to be
conducted during the period of the plan;
(b) A proposed budget of operations which shall include
an itemized list of estimated revenues and expenditures;
(c) A description of the safeguards and limitations which
ensure that the export trading company will best be used to
enhance international trade and produce public benefit in the
form of employment, capital investment, and tax revenues;
(d) A description of private competitors which may be
capable of providing the functions in the business plan; and
(e) Such other matters as may be determined by the port
district.
(3) A port district, for the purpose of establishing or promoting an export trading company under this chapter, may
provide financial assistance to the export trading company. A
port district may not provide such assistance or services for
more than five years or in an amount greater than five hundred thousand dollars. [1986 c 276 § 3.]
53.31.030
53.31.020
53.31.020 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Port district" means any port district other than a
county-wide port district in a county with a population of two
hundred ten thousand or more, established under Title 53
RCW.
(2004 Ed.)
53.31.040 Export trading companies—Powers—Formation—Dissolution. (1) For the purpose of promoting
international trade, export trading companies formed under
this chapter may provide export services through:
(a) Holding and disposing of goods in international
trade;
(b) Taking title to goods.
53.31.040
[Title 53 RCW—page 31]
53.31.050
Title 53 RCW: Port Districts
All such activities engaged in or pursued by an export
trading company shall be charged for in accordance with the
customs of the trade at competitive market rates.
(2) Nothing contained in this chapter may be construed
to authorize an export trading company to own or operate
directly or indirectly any business which provides freight-forwarding, insurance, foreign exchange, or warehousing services. Nothing contained in this chapter may be construed to
permit an export trading company to engage in the business
of transporting commodities by motor vehicle, barge, ship, or
rail for compensation.
(3)(a) Proceedings to form a public corporation designated as an export trading company shall be initiated by a resolution of the board of commissioners of a port district adopting a charter for the corporation. The charter shall contain
such provisions as are authorized by law and include provisions for a board of directors which shall conduct the affairs
of the export trading company. The board of directors shall
include no fewer than three nor more than five members, all
appointed by the port district board of commissioners. Commissioners of the port shall be eligible to serve as members of
the board and shall constitute a majority of the board of directors at all times. Unless a later date is specified, the resolution
shall take effect on the thirtieth day after adoption. The corporation shall be deemed formed for all purposes upon filing
in the office of the secretary of state a certified copy of the
effective resolution and the charter adopted by the resolution.
(b) In any suit, action, or proceeding involving the validity or enforcement of or relating to any contract of the corporation, the corporation is conclusively presumed to be established and authorized to transact business and exercise its
powers under this chapter upon proof of the adoption of the
resolution creating the corporation by the governing body. A
copy of the resolution duly certified by the secretary of the
port district commission shall be admissible in evidence in
any suit, action, or proceeding.
(c) A corporation created by a port district pursuant to
this chapter may be dissolved by the district if the corporation
(i) has no property to administer, other than funds or property, if any, to be paid or transferred to the district by which it
was established; and (ii) all its outstanding obligations have
been satisfied. Such a dissolution shall be accomplished by
the governing body of the port district adopting a resolution
providing for the dissolution.
(d) The creating port district may, at its discretion and at
any time, alter or change the structure, organizational programs, or activities of the corporation, including termination
of the corporation if contracts entered into by the corporation
are not impaired. Subject to any contractual obligations, any
net earnings of the corporation shall inure only to the benefit
of the creating port district. Upon dissolution of the corporation, all assets and title to all property owned by the corporation shall vest in the creating port district.
(4) A port district may contract with an export trading
company to provide services on a reimbursement basis at current business rates to the export trading company, including
but not limited to accounting, legal, clerical, technical, and
other administrative services. Separate accounting records
prepared according to generally accepted accounting principles shall be maintained by the export trading company.
[Title 53 RCW—page 32]
(5) Any obligation of an export trading company shall
not in any manner be an obligation of the port district nor a
charge upon any revenues or property of the port district.
(6) An export trading company may borrow money or
contract indebtedness and pledge, in whole or in part, any of
its revenues or assets not subject to prior liens or pledges. An
export trading company may not pledge any revenue or property of a port district or other municipal corporation and no
port district or other municipal corporation may pledge its
revenues or property to the payment thereof. An export trading company has no power to issue general obligation bonds,
levy taxes, or exercise power of eminent domain. [1989 c 11
§ 23; 1986 c 276 § 4.]
Severability—1989 c 11: See note following RCW 9A.56.220.
53.31.050
53.31.050 Confidentiality of records supplied by private persons. All financial and commercial information and
records supplied by private persons to an export trading company with respect to export projects shall be kept confidential
unless such confidentiality shall be waived by the party supplying the information or by all parties engaged in the discussion. [1986 c 276 § 5.]
53.31.060 Certificate of review under federal export
trading company act—Authorized. An export trading
company may apply for and hold a certificate of review provided for under 15 U.S.C. Secs. 4001 through 4021, the federal export trading company act of 1982. [1986 c 276 § 6.]
53.31.060
53.31.901 Severability—1986 c 276. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1986 c 276 § 11.]
53.31.901
Chapter 53.34
Chapter 53.34 RCW
TOLL FACILITIES
Sections
53.34.010
53.34.020
53.34.030
53.34.040
53.34.050
53.34.060
53.34.070
53.34.080
53.34.090
53.34.100
53.34.110
53.34.120
53.34.130
53.34.140
53.34.150
53.34.160
53.34.170
53.34.180
53.34.190
Toll bridges, tunnels authorized—Highway approaches.
Contracts for use of projects—Regulations—Controversies.
Revenue bonds and notes—Authorized—Purposes—Sale,
maturity, cost.
Revenue bonds and notes—Resolution—Security—Form,
interest, payment, etc.
Covenants to safeguard and secure bonds and notes.
Notes.
Bonds and notes payable solely from revenues, etc.—Adequate rates and charges to be established.
Special funds and accounts—Disposition.
Pledge of moneys, when binding—When lien attaches.
No personal liability on bonds or notes.
District may purchase bonds or notes.
State not to limit or alter rights of district or impair rights or
remedies of bond or note holders.
Bonds, notes, obligations not state or district debt—No ad
valorem taxes.
Registration of bonds and notes—Prima facie validity.
Bonds and notes as legal investment and security.
Projects declared public benefit and governmental function—
Covenant by state with bond and note holders—Tax exemption.
District's power to acquire property, rights, etc.—Gifts—Condemnation—Contracts by public agencies authorized.
Public agencies authorized to contract with district for contribution of money, property, services, etc.
Bylaws, rules for management, uses, charges—Penalty for
violation.
(2004 Ed.)
Toll Facilities
53.34.200
53.34.220
53.34.900
53.34.910
Actions for damages, injuries, death—Allegation in complaint
of presentment of claim.
Chapter supplemental to other laws—Liberal construction.
Severability—1959 c 236.
Chapter controls inconsistent acts.
53.34.010
53.34.010 Toll bridges, tunnels authorized—Highway approaches. In addition to all other powers granted to
port districts, any such district may, with the consent of the
department of transportation, acquire by condemnation, purchase, lease, or gift, and may construct, reconstruct, maintain,
operate, furnish, equip, improve, better, add to, extend, and
lease to others in whole or in part and sell in whole or in part
any one or more of the following port projects, within or
without or partially within and partially without the corporate
limits of the district whenever the commission of the district
determines that any one or more of such projects are necessary for or convenient to the movement of commercial freight
and passenger traffic a part of which traffic moves to, from,
or through the territory of the district:
(1) Toll bridges;
(2) Tunnels under or upon the beds of any river, stream,
or other body of water, or through mountain ranges.
In connection with the acquisition or construction of any
one or more of such projects the port districts may, with the
consent of the state department of transportation, further
acquire or construct, maintain, operate, or improve limited or
unlimited access highway approaches of such length as the
commission of such district deems advisable to provide
means of interconnection of the facilities with public highways and of ingress and egress to any such project, including
plazas and toll booths, and to construct and maintain under,
along, over, or across any such project telephone, telegraph,
or electric transmission wires and cables, fuel lines, gas transmission lines or mains, water transmission lines or mains,
and other mechanical equipment not inconsistent with the
appropriate use of the project, all for the purpose of obtaining
revenues for the payment of the cost of the project. [1984 c 7
§ 365; 1959 c 236 § 1.]
Severability—1984 c 7: See note following RCW 47.01.141.
53.34.020
53.34.020 Contracts for use of projects—Regulations—Controversies. The district shall have the power to
enter into a contract or contracts for the use of said projects,
their approaches and equipment and from time to time to
amend such contracts, with persons and with private and public corporations, and by said contracts to give such persons or
corporations the right to use said projects, their approaches
and equipment for the transmission of power for telephone
and telegraph lines, for the transportation of water, gas, petroleum, and other products, for railroad and railway purposes,
and for any other purpose to which the same may be adapted:
PROVIDED, That no such contract shall be for a period
longer than ninety-nine years, and that the projects shall be
put to the largest possible number of uses consistent with the
purposes for which such projects are constructed.
In making such contract or contracts and providing for
payments and rentals thereunder the port district shall determine the value of the separate and different uses to which the
projects are to be put and shall apportion the annual rentals
and charges as nearly as possible according to the respective
values of such uses. No such contract shall be made with any
(2004 Ed.)
53.34.030
person or corporation unless and until such person or corporation shall bind himself or itself to pay as rental therefor an
amount determined by the port district and specified in the
contract which shall be a fair and just proportion of the total
amount required to pay interest on the bonds provided for in
this chapter, plus a just proportion of the amount necessary
for their retirement, and plus the cost of maintenance of the
projects, their approaches and equipment.
The port district may require any of such contracts to be
entered into before beginning the construction of said
projects or before the expenditure of funds under the provisions of this chapter if in its judgment it is deemed expedient.
There shall be no monopoly of the use of said projects,
and their approaches by any one use, or by any person or corporation, private or public, in respect to the several uses, and
the port district may continue to make separate, additional,
and supplemental contracts for one or more uses until in the
judgment of said port district the capacity of the projects and
approaches for any such use has been reached. When such
capacity has been reached contracts for the use of said
projects shall be given preference in regard to such uses
according to the public interest as determined by the port district, and subsequent contracts shall be subject to all existing
and prior contracts. The port district shall have the power to
prescribe regulations for the use of such facilities by the parties to contracts for such use, or any of them, and to hear and
determine all controversies which may arise between such
parties, under such rules as the port district may from time to
time promulgate; and all contracts shall expressly reserve
such power to the port district. [1959 c 236 § 2.]
53.34.030
53.34.030 Revenue bonds and notes—Authorized—
Purposes—Sale, maturity, cost. Whenever any port district
shall determine to acquire or construct any one or more
projects authorized under the provisions of this chapter, the
commission of such district shall have the power and is
authorized to issue negotiable revenue bonds and notes from
time to time in one or more series or installments in such principal amount as, in the opinion of the commission, shall be
necessary to provide sufficient money for the acquisition,
construction, reconstruction, extension or improvement
thereof as set forth in RCW 53.34.010, including engineering, inspection, legal and financial fees and costs, working
capital, interest on such bonds and notes during construction
and for a reasonable period thereafter, establishment of
reserves to secure such bonds and notes and all other expenditures of such district incidental, necessary or convenient to
the establishment of such projects on a sound financial basis,
and to issue negotiable revenue bonds and notes for the purpose of renewing or refunding such outstanding bonds and
notes in whole or in part at or prior to maturity. All such revenue bonds or notes shall be negotiable instruments within
the meaning and purposes of the negotiable instruments law
and shall be sold by the commission in such manner and for
such price as the commission deems for the best interests of
the district: PROVIDED, That the bonds and warrants may
be in any form, including bearer bonds or bearer notes, or
registered bonds or registered notes as provided in RCW
39.46.030. The commission may provide in any contract for
the construction or acquisition of all or any part of a project
or projects or for the additions or betterments thereto or
[Title 53 RCW—page 33]
53.34.040
Title 53 RCW: Port Districts
extensions or improvements thereof that payment therefor
shall be made only in such revenue bonds or notes. Any revenue bonds issued under the authority of chapter 236, Laws
of 1959 shall have a final maturity not to exceed forty years
from date of issue. [1983 c 167 § 133; 1970 ex.s. c 56 § 69;
1969 ex.s. c 232 § 79; 1959 c 236 § 3.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Purpose—1970 ex.s. c 56: See note following RCW 39.52.020.
Validation—Saving—Severability—1969 ex.s. c 232: See notes following RCW 39.52.020.
53.34.040
53.34.040 Revenue bonds and notes—Resolution—
Security—Form, interest, payment, etc. (1) Revenue
bonds and notes may be issued by one or more resolutions
and may be secured by trust agreement by and between the
district and one or more corporate trustees, depositories, or
fiscal agents, which may be any trust company or state or
national bank having powers of a trust company within or
without the state of Washington. Such bonds or notes shall
bear such date or dates, mature at such time or times, bear
interest at such rate or rates, be in such denominations, be in
such form either coupon or registered as provided in RCW
39.46.030, carry such registration privileges, be executed in
such manner, be payable in such medium of payment at such
place or places within or without the state of Washington, and
be subject to such terms of redemption and at such redemption premiums as such resolution, resolutions, or trust agreements may provide. No proceedings for the issuance of such
bonds or notes shall be required other than those required by
the provisions of this chapter, and none of the provisions of
any other laws relative to the terms and conditions for the
issuance, payment, redemption, registration, sale or delivery
of bonds of public bodies, corporation, or political subdivisions of this state shall be applicable to bonds or notes issued
by port districts pursuant to this chapter.
(2) Notwithstanding subsection (1) of this section, such
bonds and notes may be issued and sold in accordance with
chapter 39.46 RCW. [1983 c 167 § 134; 1970 ex.s. c 56 § 70;
1969 ex.s. c 232 § 80; 1959 c 236 § 4.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Purpose—1970 ex.s. c 56: See note following RCW 39.52.020.
Validation—Saving—Severability—1969 ex.s. c 232: See notes following RCW 39.52.020.
53.34.050
53.34.050 Covenants to safeguard and secure bonds
and notes. Any resolution, resolutions, or trust agreements
authorizing the issuance of any bonds or notes of a port district may contain covenants and agreements on the part of the
district to protect and safeguard the security and payment of
such bonds or notes, which shall be a part of the contract with
the owners of such obligations thereby authorized as to:
(1) Pledging all or any part of the revenues, income,
receipts, profits and other moneys derived by the district issuing such obligations from the ownership, operation, management, lease, or sale of any one or more of the projects constructed from the proceeds thereof to secure the payment of
bonds or notes;
(2) The establishment and collection of rates, rentals,
tolls, charges, license, and other fees to be charged by the dis[Title 53 RCW—page 34]
trict and the amounts to be raised in each year for the services
and commodities sold, leased, furnished, or supplied by any
one or more of the projects established from the proceeds of
such obligations, and the deposit, use, and disposition of the
revenues of the district received therefrom;
(3) The setting aside of reserves or sinking funds for
such obligations, and the deposit, investment, and disposition
thereof;
(4) Limitations on the purpose or purposes to which the
proceeds of sale of any issue of bonds or notes then or thereafter issued payable from the revenues of any such project or
projects may be applied, and pledging such proceeds to
secure the payment of such bonds or notes;
(5) Limitations on the issuance of additional revenue
bonds or notes of the district, the terms and conditions upon
which such additional revenue bonds or notes may be issued
and secured, and the refunding of outstanding or other bonds
or notes;
(6) The procedure, if any, by which the terms of any contract with bond owners may be amended or abrogated, the
amount of bonds or notes the owners of which must consent
thereto, and the manner in which such consent may be given;
(7) Limitations on the amount of moneys derived from
any project or projects to be expended for operating, administrative or other expenses of the district in connection with
any such project or projects;
(8) The employment of independent auditors and engineers or other technical consultants to advise and assist the
district in the operation, management, and improvement of
any project or projects;
(9) Limitations or prohibitions on rendering free service
in connection with any project or projects;
(10) Specifying conditions constituting events of default
and vesting in one or more trustees including trustees which
may be appointed by the bond owners and note owners, such
special rights, property rights, powers, and duties with
respect to the property and revenues of any project or projects
as the commission of the district may deem advisable the better to secure the payment of such bonds and notes;
(11) Prescribing conditions controlling the acquisition,
sale, lease, or other disposition of real and personal property
used or useful in connection with any project or projects, the
amount and kinds of policies of insurance to be carried by the
district in connection therewith, and the use and disposition
of the proceeds of policies of insurance; and
(12) Any other matters of like or different character
which in any way affect the security or protection of bonds or
notes of the district. [1983 c 167 § 135; 1959 c 236 § 5.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
53.34.060
53.34.060 Notes. A district shall have power from time
to time to issue bond anticipation revenue notes (herein
referred to as notes), and from time to time to issue renewal
notes, such notes in any case to mature not later than six years
from the date of incurring the indebtedness represented
thereby in an amount not exceeding in the aggregate at any
time outstanding the amount of revenue bonds then or theretofore authorized but not issued. Payment of such notes shall
be made from any moneys or revenue which the district may
have available for such purpose or the proceeds of the sale of
(2004 Ed.)
Toll Facilities
revenue bonds of the district, or such notes may be
exchanged for a like amount of such revenue bonds bearing
the same or a lower or higher rate of interest than that borne
by such notes.
All notes may be issued and sold in the same manner as
revenue bonds. Any district shall have power to make contracts for the future sale from time to time of notes on terms
and conditions stated in such contracts, and the district shall
have power to pay such consideration as it shall deem proper
for any commitments to purchase notes in the future. Such
notes may also be collaterally secured by pledges and deposits with a bank or trust company, in trust for the payment of
said notes, of revenue bonds in an aggregate amount at least
equal to the amount of such notes and, in any event, in
amount deemed by the district sufficient to provide for the
payment of the notes in full at the maturity thereof. The district may provide in such collateral agreement that the notes
may be exchanged for revenue bonds held as collateral security for the notes, or that the trustee may sell the revenue
bonds if the notes are not otherwise paid at maturity and
apply the proceeds of such sale to the payment of the notes.
Such notes shall bear interest at a rate or rates as authorized
by the port commission. [1970 ex.s. c 56 § 71; 1969 ex.s. c
232 § 81; 1959 c 236 § 6.]
Purpose—1970 ex.s. c 56: See note following RCW 39.52.020.
Validation—Saving—Severability—1969 ex.s. c 232: See notes following RCW 39.52.020.
53.34.070 Bonds and notes payable solely from revenues, etc.—Adequate rates and charges to be established.
Revenue bonds and notes issued under the provisions of this
chapter shall be payable solely from the revenues, income,
receipts, profits, charges, fees, rentals, and moneys received
or derived by or through the ownership, operation, sale, lease,
or other disposition in whole or in part of any project or
projects authorized under the provisions of this chapter, or
through the issuance of refunding bonds or notes, and the
commission of any district issuing revenue bonds or notes
under the authority of this chapter shall establish, maintain,
and collect rates, tolls, rents, and charges from time to time so
long as any of such revenue bonds are outstanding and unpaid
for all services sold, furnished, or supplied by or through any
such project or projects sufficient to produce an amount,
together with any other moneys of the district available and
dedicated to such purpose, to pay the principal of and interest
and premium, if any, on all revenue bonds and notes payable
from the revenues of any project or projects as the same may
respectively fall due in accordance with the terms of the resolution or resolutions or trust agreement authorizing the issuance and securing the payment of such obligations. [1959 c
236 § 7.]
53.34.070
53.34.080 Special funds and accounts—Disposition.
The resolution, resolutions, or trust agreement providing for
the issuance of revenue bonds or notes pursuant to the provisions of this chapter shall create and establish a special fund
of the district into which the district shall be obligated to
deposit as collected all income, revenues, receipts, and profits
derived by the district through the ownership and operation
of any project or projects acquired or constructed from the
proceeds of the sale of such revenue bonds or notes: PRO53.34.080
(2004 Ed.)
53.34.100
VIDED, That additional separate special funds or accounts
may be created by such resolution or trust agreement into
which the district may obligate itself to deposit the proceeds
of the sale of such revenue bonds and notes, the proceeds of
the sale or other disposition in whole or in part of any project
or projects, the proceeds of any policies of insurance on such
projects, and any other additional moneys received by the
district and applicable to such projects. All such moneys shall
be held by the district, the depositories and trustees of such
funds and accounts, in trust for the equal and ratable benefit
and security of the holders from time to time of the revenue
bonds and notes issued pursuant to the resolution, resolutions, or trust agreement establishing such special funds or
accounts, and shall be collected, held, deposited, and disbursed solely for the acquisition, construction, operation,
maintenance, renewal, replacement, improvement, extension,
and betterment of such project or projects and the payment of
the principal of and interest and premium, if any, on the revenue bonds and notes issued pursuant to such resolution, resolutions, or trust agreements, and the creation and maintenance of reasonable reserves for all such purposes: PROVIDED, HOWEVER, That the district may in its discretion
and subject to any agreements with the holders of such revenue bonds and notes expend amounts of such moneys as are
not required for the purposes aforesaid for other corporate
purposes of the district.
The district may pledge such moneys or revenues of the
district subject to prior pledges thereof, if any, for the payment of such notes and may in addition secure the notes in the
same manner as herein provided for revenue bonds. [1959 c
236 § 8.]
53.34.090
53.34.090 Pledge of moneys, when binding—When
lien attaches. It is the intention hereof that any pledge of
revenues, income, receipts, profits, charges, fees, or other
moneys made by a district for the payment of bonds shall be
valid and binding from the time of the adoption of any resolution or the execution of any trust agreement making such
pledge notwithstanding the fact that there may not then be
any simultaneous delivery thereof, that the revenues, income,
receipts, profits, charges, fees, and other moneys so pledged
shall as soon as received by the district immediately be subject to the lien of such pledge without the physical delivery
thereof and without further act, and that the lien of any such
pledge shall be valid and binding as against all parties having
claims of any kind in tort, contract, or otherwise against the
district irrespective of whether such parties have notice
thereof. Neither the resolution, resolutions, or trust agreement authorizing revenue bonds or notes nor any other instrument by which such a pledge is created need be recorded to
be effective. [1959 c 236 § 9.]
53.34.100
53.34.100 No personal liability on bonds or notes.
Neither the members of a commission nor any person executing revenue bonds or notes shall be liable personally on such
bonds or notes, or be subject to any personal liability or
accountability by reason of the issuance thereof. [1959 c 236
§ 10.]
[Title 53 RCW—page 35]
53.34.110
Title 53 RCW: Port Districts
53.34.110 District may purchase bonds or notes. A
district shall have power out of any funds available therefor
to purchase revenue bonds or notes of such district. Any
bonds or notes so purchased may be held, canceled, or resold
by the district subject to and in accordance with any resolution or resolutions or trust agreements with bondholders.
[1959 c 236 § 11.]
53.34.110
53.34.120 State not to limit or alter rights of district
or impair rights or remedies of bond or note holders. The
state of Washington does hereby covenant and agree with the
holders of revenue bonds or notes issued by a district under
the authority of this chapter that the state will not limit or alter
the rights hereby vested in a district to acquire, maintain, construct, reconstruct, improve, extend, add to, better and operate the projects authorized to be constructed or acquired
under the provisions hereof and to establish, collect, and
pledge such rates, rentals, tolls, charges, license, and other
fees as may be convenient or necessary to produce sufficient
revenue to meet the expense of maintenance and operation of
such projects and to fulfill the terms of any agreements made
with holders of such revenue bonds and notes or in any way
impair the rights and remedies of bondholders and noteholders until the bonds or notes together with interest thereon,
with interest on any unpaid installments of interest, and all
costs and expenses in connection with any action or proceedings by or on behalf of the bondholders or noteholders, are
fully met and discharged. The provisions of this chapter and
of the resolutions, trust agreements and proceedings authorizing revenue bonds and notes hereunder shall constitute a contract with the holders of said bonds and notes. [1959 c 236 §
12.]
53.34.120
53.34.130 Bonds, notes, obligations not state or district debt—No ad valorem taxes. The revenue bonds, revenue notes, and any other obligations of a district issued
under the authority of this chapter shall not be a debt of the
state of Washington or of any political subdivision of this
state, nor shall such obligations be considered indebtedness
of the port district issuing same within any constitutional,
statutory, or other limitation of indebtedness, and neither the
state nor any political subdivision thereof, including the port
district issuing such revenue bonds or notes, shall ever
become obligated to levy ad valorem taxes on any taxable
property within the state for the payment of such revenue
bonds and notes, but such revenue bonds and notes shall be
payable solely from and shall be a charge only upon the revenues and other funds of the project or projects pledged to the
payment thereof by the proceedings authorizing the issuance
of such bonds and notes. [1959 c 236 § 13.]
53.34.130
53.34.140 Registration of bonds and notes—Prima
facie validity. Prior to the issuance and delivery of revenue
bonds or notes under the authority of this chapter, such revenue bonds or notes and a certified copy of the resolution, resolutions, or trust agreements authorizing such revenue bonds
or notes shall be forwarded by the port commission to the
state auditor together with any additional information
requested by him, and when such revenue bonds or notes
have been examined they shall be registered by the auditor in
books to be kept by him for that purpose, and a certificate of
53.34.140
[Title 53 RCW—page 36]
registration shall be endorsed upon each such revenue bond
or note and signed by the auditor or a deputy appointed by
him for that purpose.
Revenue bonds or notes so registered shall then be prima
facie valid and binding obligations of the port district in
accordance with the terms thereof, notwithstanding any
defect or irregularity in the proceedings for the authorization
and issuance of such revenue bonds or notes or in the sale,
execution or delivery thereof or in the application of the proceeds thereof. [1959 c 236 § 14.]
53.34.150
53.34.150 Bonds and notes as legal investment and
security. Revenue bonds and notes issued under the authority of this chapter are made securities in which all public
officers and bodies of this state, all municipalities and municipal subdivisions and all other political subdivisions of this
state, all insurance companies and associations and other persons carrying on an insurance business, all banks, bankers,
trust companies, savings banks, and savings associations,
including savings and loan associations, building and loan
associations, investment companies and other persons carrying on a banking business, all administrators, guardians,
executors, trustees and other fiduciaries, and all other persons
whatsoever who are now or may hereafter be authorized to
invest in bonds or other obligations of the state, may properly
and legally invest funds, including capital, in their control or
belonging to them. Such bonds and notes are also made securities which may be deposited with and shall be received by
all public officers and bodies of this state, all municipalities,
municipal subdivisions, and other political subdivisions of
this state for any purpose for which the deposit of bonds or
other obligations of this state is now or may hereafter be
authorized. [1959 c 236 § 15.]
53.34.160
53.34.160 Projects declared public benefit and governmental function—Covenant by state with bond and
note holders—Tax exemption. It is found, determined, and
declared that the creation and establishment of projects
authorized by this chapter are in all respects for the benefit of
the people of the state of Washington, for the improvement of
their welfare and prosperity, and for the promotion of intrastate, interstate, and foreign commerce, the transportation of
freight, commercial, and passenger traffic, is a public purpose, that such projects operated by port districts are essential
parts of the public transportation system, and that such districts will be performing essential governmental functions in
the exercise of the powers conferred upon them by this chapter; and the state of Washington covenants with the holders of
revenue bonds and notes that port districts shall not be
required to pay any taxes or assessments, or other governmental charges in lieu thereof, upon any of the property
acquired by them or under their respective jurisdictions, control, possession, or supervision, upon the activities of port
districts in the operation and maintenance of such projects, or
upon any charges, fees, rentals, revenues, or other income
received by such districts from such projects and that the revenue bonds and notes of port districts and the income therefrom shall at all times be exempt from all taxation in the state
of Washington, except transfer, inheritance, and estate taxes.
This section shall constitute a covenant and agreement with
(2004 Ed.)
Toll Facilities
the holders of all revenue bonds and notes issued by port districts pursuant to the provisions of this chapter. [1959 c 236
§ 16.]
53.34.170
53.34.170 District's power to acquire property,
rights, etc.—Gifts—Condemnation—Contracts by public
agencies authorized. In the acquisition, construction, reconstruction, improvement, extension, or betterment of any
project or projects authorized under the provisions of this
chapter any port district creating and establishing any such
project or projects may have and exercise all of the powers
heretofore or hereafter granted to port districts for corporate
purposes and, in addition thereto, may acquire by gift or
grant, lease, purchase, or condemnation any public and private property, franchises and property rights, including state,
county, and school lands and property, and littoral and water
rights whether or not any such property is then devoted to
public or quasi public proprietary or governmental use:
PROVIDED, That the court shall find that the proposed condemnation of any property already devoted to a public use is
for a higher public use, and may by appropriate contracts
with any city, county, or other political subdivision of the
state, with the state and any department of the government of
the state (hereinafter referred to collectively as public agencies), or with any department, instrumentality or agency of
the United States, acquire title to or the use of existing roads,
streets, parkways, avenues, or highways or the closing of any
roads, streets, parkways, avenues, or highways as may be
necessary or convenient to the acquisition, construction, or
operation of any such project or projects under such terms
and conditions as may be mutually agreed upon. All public
agencies are authorized to enter into contracts with port districts for the aforesaid purposes. [1959 c 236 § 17.]
53.34.180
53.34.180 Public agencies authorized to contract
with district for contribution of money, property, services, etc. Any public agency, including without limitation
the department of transportation, may contract with a port
district that is constructing a project or projects under this
chapter for the contribution of moneys or real or personal
property in aid of the construction of the projects, or for the
furnishing of engineering, legal, police, and fire protection,
and all other services necessary or convenient to the acquisition, construction, reconstruction, operation, maintenance,
renewal, replacement, improvement, additions to, or extension of the project or projects. The contracts shall run for such
period of years and contain such terms and conditions as the
parties thereto mutually agree upon. Any public agency, by
resolution, may authorize the execution of the contracts with
a port district and no other authorization on the part of the
public agency is necessary, regardless of any provision of
laws or of a city charter to the contrary. Obligations assumed
by a public agency under the contracts entered into under this
chapter shall be included and provided for in each annual
budget of the public agency made thereafter until all the obligations have been fully discharged. [1984 c 7 § 366; 1959 c
236 § 18.]
Severability—1984 c 7: See note following RCW 47.01.141.
(2004 Ed.)
53.34.910
53.34.190
53.34.190 Bylaws, rules for management, uses,
charges—Penalty for violation. (1) Any port district establishing a project under the authority of this chapter may make
such bylaws, rules, and regulations for the management and
use of such project and for the collection of rentals, tolls, fees,
and other charges for services or commodities sold, furnished
or supplied through such project.
(2) The violation of any bylaw, rule, or regulation
described in subsection (1) of this section is a misdemeanor
punishable by fine not to exceed one hundred dollars or by
imprisonment for not longer than thirty days, or both. [2003
c 53 § 287; 1959 c 236 § 19.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
53.34.200
53.34.200 Actions for damages, injuries, death—
Allegation in complaint of presentment of claim. In every
action against a district for damages, for injuries to real or
personal property, or for the destruction thereof, or for personal injuries or death arising in connection with the acquisition, construction, reconstruction, operation, or maintenance
of a project authorized by the provisions of this chapter, the
complaint shall contain an allegation that at least thirty days
have elapsed since a demand, claim, or claims upon which
such action is founded were presented to the secretary of the
district, or to its chief executive officer, and that the district
has neglected or refused to make an adjustment or payment
thereof for thirty days after such presentment. [1959 c 236 §
20.]
53.34.220
53.34.220 Chapter supplemental to other laws—Liberal construction. The powers and rights granted to port districts and public agencies by the provisions of this chapter are
in addition and supplemental to and not in substitution of the
powers and rights heretofore or hereafter granted to such districts and public agencies by any other law or city charter, and
no limitations or restrictions or proceedings for the exercise
of powers and rights by port districts and public agencies
contained in any other laws or city charters shall apply to the
exercise of powers and rights granted by the provisions of
this chapter, and the provisions of this chapter shall be liberally construed to permit the accomplishment of the purposes
hereof. [1959 c 236 § 22.]
53.34.900
53.34.900 Severability—1959 c 236. If any section,
clause or provision of this chapter shall be declared unconstitutional or invalid in whole or in part, to the extent that this
chapter is not unconstitutional or invalid this chapter shall be
valid and effective, and no other section, clause, or provision
hereof shall on account of such declaration be deemed invalid
or ineffective. [1959 c 236 § 23.]
53.34.910
53.34.910 Chapter controls inconsistent acts. Insofar
as the provisions of this chapter are inconsistent with the provisions of any other act or of any city charter, the provisions
of this chapter shall be controlling. [1959 c 236 § 24.]
[Title 53 RCW—page 37]
Chapter 53.35
Chapter 53.35
Title 53 RCW: Port Districts
Chapter 53.35 RCW
BUDGETS
Sections
53.35.010
53.35.020
53.35.030
53.35.040
53.35.045
53.35.050
53.35.060
53.35.070
53.35.071
53.35.900
Preliminary budget.
Publication of notice of preliminary budget and hearing.
Hearing—Final budget.
Final budget to be filed with county commissioners.
Alternate date for filing final budget.
Supplemental budgets.
Fiscal year.
Chapter exclusive method for budgets.
Expenditures for industrial development, trade promotion, or
promotional hosting—Budgeting required.
Severability—1959 c 159.
53.35.010
53.35.010 Preliminary budget. On or before the 15th
day of September of each year each port commission shall
prepare a preliminary budget of the port district for the ensuing fiscal year showing the estimated expenditures and the
anticipated available funds from which all expenditures are to
be paid. [1959 c 159 § 1.]
district final budget, provided for in RCW 53.35.040, on the
first Monday in December. The board of port commissioners
may also set other dates relating to the budget process,
including but not limited to the dates set in RCW 53.35.010
and 53.35.020 to conform to the alternate date for final budget filing. [1974 ex.s. c 19 § 1.]
53.35.050
53.35.050 Supplemental budgets. A port commission
may adopt by resolution one or more supplemental budgets at
any time during the fiscal year. Such supplemental budget
shall be adopted only after public hearing. Notice of such
hearing shall be given by a single publication of notice of the
date, place and hour of the hearing in a legal newspaper of the
district, or if there is none, in any newspaper of general circulation in the county, the publication of such notice to be at
least five days and not more than fifteen days prior to the
hearing date. [1959 c 159 § 5.]
53.35.060
53.35.060 Fiscal year. The fiscal year for a port district
shall be the calendar year. [1959 c 159 § 6.]
53.35.020
53.35.020 Publication of notice of preliminary budget and hearing. Following the preparation of the preliminary budget, the port commission shall publish a notice stating that the preliminary budget of the port district has been
prepared and placed on file at the office of the port district;
that a copy thereof may be obtained by any taxpayer at an
address set forth in the notice; that the commission will meet
at a date, hour and place set forth in the notice, such date to be
not earlier than September 15th and not later than the first
Tuesday following the first Monday in October, for the purpose of fixing and adopting the final budget of the port district for the ensuing year. The notice shall be published once
each week for two consecutive weeks in a legal newspaper of
the district, or if there is none, in any newspaper of general
circulation in the county, the first publication to be not less
than nine days nor more than twenty days prior to the date of
the hearing. [1959 c 159 § 2.]
53.35.070
53.35.070 Chapter exclusive method for budgets.
The provisions of this chapter shall constitute the exclusive
requirement and authority for the preparation, adoption, certification and filing of port district budgets. [1959 c 159 § 7.]
53.35.071
53.35.071 Expenditures for industrial development,
trade promotion, or promotional hosting—Budgeting
required. See RCW 53.36.120.
53.35.900
53.35.900 Severability—1959 c 159. Should any section or parts of sections of this chapter be declared unconstitutional it shall in no case affect the validity of other provisions of this chapter. [1959 c 159 § 8.]
Chapter 53.36
Chapter 53.36 RCW
FINANCES
53.35.030
53.35.030 Hearing—Final budget. On the day set by
the notice provided for in RCW 53.35.020 the commission
shall meet at the place and hour designated for the purpose of
a hearing on the budget and adoption of a final budget. Any
person may present objections to the preliminary budget following which the commission shall, by resolution adopt a
final budget. [1959 c 159 § 3.]
53.35.040
53.35.040 Final budget to be filed with county commissioners. It shall be the duty of the commissioners of port
districts, for the purpose of levying port district taxes, to file
with the clerk of the board of county commissioners on or
before the Wednesday next following the first Monday in
October in each year a certified copy of such final budget
which shall specify the amounts to be raised by taxation on
the assessed valuation of the property in the port district.
[1959 c 159 § 4.]
Sections
53.36.010
53.36.015
53.36.020
53.36.030
53.36.040
53.36.050
53.36.060
53.36.070
53.36.080
53.36.100
53.36.110
53.36.120
53.36.130
53.36.140
53.35.045
53.35.045 Alternate date for filing final budget. Notwithstanding any provision of law to the contrary, the board
of commissioners of a port district may file with the clerk of
the county legislative authority a certified copy of the port
[Title 53 RCW—page 38]
53.36.150
District treasurer.
Payment of claims—Use of warrants and checks.
Tax levy—Limitation.
Indebtedness—Limitation.
Funds in anticipation of revenues—Warrants.
County treasurer—General and special funds—Depositories—Investment of excess funds.
Incidental expense fund.
Levy for dredging, canal construction, or land leveling or filling purposes.
Collection of levies for dredging, canal construction, or land
leveling or filling purposes.
Levy for industrial development district purposes—Notice—
Petition—Election.
Levy for industrial development district purposes—Excess
funds to be used solely for retirement of general obligations.
Expenditures for industrial development, trade promotion, or
promotional hosting—Budgeting required.
Expenditures for industrial development, trade promotion, or
promotional hosting—Source and amount of funds.
Expenditures for industrial development, trade promotion, or
promotional hosting—Rules and regulations—Authorizations—Vouchers.
Expenditures for industrial development, trade promotion, or
promotional hosting—Duties of state auditor.
Accounting system and state examination: RCW 43.09.200 through
43.09.280.
(2004 Ed.)
Finances
Disposition of rentals from aquatic lands managed by a port district: RCW
79.90.475.
Tax district relief: Chapter 39.64 RCW.
Vouchers on public funds: Chapter 42.24 RCW.
53.36.010
53.36.010 District treasurer. The treasurer of the
county in which a port district is located shall be treasurer of
the district unless the commission of a port district which has
for the last three consecutive years received annual gross
operating revenues of one hundred thousand dollars or more,
excluding tax revenues and grants for capital purposes, designates by resolution some other person having experience in
financial or fiscal matters as treasurer of the port district to
act with the same powers and under the same restrictions as
provided by law for a county treasurer acting on behalf of a
port district: PROVIDED, That any port district which was
authorized by the county treasurer to appoint its own treasurer prior to July 24, 1983, may continue to appoint its own
treasurer. The commission may, and if the treasurer is not the
county treasurer it shall, require a bond, with a surety company authorized to do business in the state of Washington, in
an amount and under the terms and conditions which the
commission by resolution from time to time finds will protect
the district against loss. The premium on such bonds shall be
paid by the district. All district funds shall be paid to the treasurer and shall be disbursed by him upon warrants signed by
a port auditor appointed by the port commission, upon vouchers approved by the commission. [1983 c 250 § 1; 1974 ex.s.
c 13 § 1; 1955 c 348 § 5. Prior: 1921 c 179 § 1, part; 1911 c
92 § 5, part; RRS § 9693, part.]
Severability—1955 c 348: See note following RCW 53.08.120.
County treasurer, calling warrants: RCW 36.29.060.
53.36.015
53.36.015 Payment of claims—Use of warrants and
checks. A port district that acts as its own treasurer as provided in RCW 53.36.010 may by resolution adopt a policy for
the payment of claims or other obligations of the port district,
which are payable out of solvent funds, electing either to pay
obligations by warrant or by check. However, no check shall
be issued when the applicable fund is not solvent at the time
payment is ordered, but a warrant shall be issued instead.
When checks are to be used, the port commission shall designate the qualified public depository where checks are to be
drawn, and the officers authorized or required to sign checks.
Wherever in this title reference is made to warrants, the term
includes checks where authorized by this section. [2002 c 95
§ 1.]
53.36.020
53.36.020 Tax levy—Limitation. A district may raise
revenue by levy of an annual tax not to exceed forty-five
cents per thousand dollars of assessed value against the
assessed valuation of the taxable property in such port district
for general port purposes, including the establishment of a
capital improvement fund for future capital improvements,
except that any levy for the payment of the principal and
interest of the general bonded indebtedness of the port district
shall be in excess of any levy made by the port district under
the forty-five cents per thousand dollars of assessed value
limitation. The levy shall be made and taxes collected in the
manner provided for the levy and collection of taxes in school
(2004 Ed.)
53.36.030
districts of the first class. [1973 1st ex.s. c 195 § 56; 1955 c
65 § 11. Prior: 1951 c 133 § 1; 1943 c 166 § 2, part; 1921 c
183 § 1, part; 1917 c 125 § 1, part; 1913 c 62 § 4, part; 1911
c 92 § 4, part; Rem. Supp. 1943 § 9692, part.]
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
Budgets: Chapter 53.35 RCW.
Levy of taxes: Chapter 84.52 RCW.
Limitation on levies: State Constitution Art. 7 § 2 (Amendments 55 and 59);
RCW 84.52.050 through 84.52.056.
School district levy: Chapter 28A.545 RCW.
53.36.030 Indebtedness—Limitation. (1)(a) Except as
provided in (b) of this subsection, a port district may at any
time contract indebtedness or borrow money for district purposes and may issue general obligation bonds therefor not
exceeding an amount, together with any existing indebtedness of the district not authorized by the voters, of one-fourth
of one percent of the value of the taxable property in the district.
(b) Port districts having less than eight hundred million
dollars in value of taxable property during 1991 may at any
time contract indebtedness or borrow money for port district
purposes and may issue general obligation bonds therefor not
exceeding an amount, combined with existing indebtedness
of the district not authorized by the voters, of three-eighths of
one percent of the value of the taxable property in the district.
Prior to contracting for any indebtedness authorized by this
subsection (1)(b), the port district must have a comprehensive
plan for harbor improvements or industrial development and
a long-term financial plan approved by the department of
community, trade, and economic development. The department of community, trade, and economic development is
immune from any liability for its part in reviewing or approving port district's improvement or development plans, or
financial plans. Any indebtedness authorized by this subsection (1)(b) may be used only to acquire or construct a facility,
and, prior to contracting for such indebtedness, the port district must have a lease contract for a minimum of five years
for the facility to be acquired or constructed by the debt.
(2) With the assent of three-fifths of the voters voting
thereon at a general or special port election called for that
purpose, a port district may contract indebtedness or borrow
money for district purposes and may issue general obligation
bonds therefor provided the total indebtedness of the district
at any such time shall not exceed three-fourths of one percent
of the value of the taxable property in the district.
(3) In addition to the indebtedness authorized under subsections (1) and (2) of this section, port districts having less
than two hundred million dollars in value of taxable property
and operating a municipal airport may at any time contract
indebtedness or borrow money for airport capital improvement purposes and may issue general obligation bonds therefor not exceeding an additional one-eighth of one percent of
the value of the taxable property in the district without authorization by the voters; and, with the assent of three-fifths of
the voters voting thereon at a general or special port election
called for that purpose, may contract indebtedness or borrow
money for airport capital improvement purposes and may
issue general obligation bonds therefor for an additional
three-eighths of one percent provided the total indebtedness
53.36.030
[Title 53 RCW—page 39]
53.36.040
Title 53 RCW: Port Districts
of the district for all port purposes at any such time shall not
exceed one and one-fourth percent of the value of the taxable
property in the district.
(4) Any port district may issue general district bonds evidencing any indebtedness, payable at any time not exceeding
fifty years from the date of the bonds. Any contract for
indebtedness or borrowed money authorized by RCW
53.36.030(1)(b) shall not exceed twenty-five years. The
bonds shall be issued and sold in accordance with chapter
39.46 RCW.
(5) Elections required under this section shall be held as
provided in RCW 39.36.050.
(6) For the purpose of this section, "indebtedness of the
district" shall not include any debt of a county-wide district
with a population less than twenty-five hundred people when
the debt is secured by a mortgage on property leased to the
federal government; and the term "value of the taxable property" shall have the meaning set forth in RCW 39.36.015.
(7) This section does not apply to a loan made under a
loan agreement under chapter 39.69 RCW, and a computation of indebtedness under this chapter must exclude the
amount of a loan under such a loan agreement. [1996 c 66 §
1; 1995 c 102 § 1; 1991 c 314 § 29; 1990 c 254 § 1; 1984 c
186 § 41; 1970 ex.s. c 42 § 32; 1965 ex.s. c 54 § 1; 1959 c 52
§ 1; 1955 c 65 § 12. Prior: 1943 c 166 § 2, part; 1921 c 183 §
1, part; 1917 c 125 § 1, part; 1911 c 92 § 4, part; Rem. Supp.
1943 § 9692, part.]
Findings—1991 c 314: See note following RCW 43.160.020.
Purpose—1984 c 186: See note following RCW 39.46.110.
Severability—Effective date—1970 ex.s. c 42: See notes following
RCW 39.36.015.
General provisions applicable to district bonds: Chapter 39.44 RCW.
Limitation upon indebtedness: State Constitution Art. 8 § 6 (Amendment
27); chapter 39.36 RCW.
Port district indebtedness authorized, emergency public works: RCW
39.28.030.
Validation requirement: RCW 39.40.010.
53.36.040
53.36.040 Funds in anticipation of revenues—Warrants. (1) Any port commission is hereby authorized, prior
to the receipt of taxes raised by levy, to borrow money or
issue the warrants of the district in anticipation of the revenues to be derived by such district and such warrants shall be
redeemed from the first money available from such taxes
when collected. Such warrants may be in any form, including
bearer warrants or registered warrants as provided in RCW
39.46.030.
(2) Notwithstanding subsection (1) of this section, such
warrants may be issued and sold in accordance with chapter
39.46 RCW. [1983 c 167 § 136; 1921 c 179 § 2; 1911 c 92 §
12; RRS § 9699.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
53.36.050
53.36.050 County treasurer—General and special
funds—Depositories—Investment of excess funds. The
county treasurer acting as port treasurer shall create a fund to
be known as the "Port of . . . . . . Fund," into which shall be
paid all money received by him from the collection of taxes
in behalf of such port district, and shall also maintain such
other special funds as may be created by the port commission
[Title 53 RCW—page 40]
into which shall be placed such moneys as the port commission may by its resolution direct. All such port funds shall be
deposited with the county depositories under the same
restrictions, contracts and security as is provided by statute
for county depositories and all interest collected on such port
funds shall belong to such port district and shall be deposited
to its credit in the proper port funds: PROVIDED, That any
portion of such port moneys determined by the port commission to be in excess of the current needs of the port district
may be invested by the county treasurer in accordance with
RCW 36.29.020, 36.29.022, and chapter 39.59 RCW, and all
interest collected thereon shall likewise belong to such port
district and shall be deposited to its credit in the proper port
funds. [1997 c 393 § 10; 1959 c 52 § 2; 1921 c 179 § 3; 1911
c 92 § 13; RRS § 9700.]
County depositaries: Chapter 36.48 RCW.
53.36.060
53.36.060 Incidental expense fund. The port commission of any port district may, by resolution, create an incidental expense fund in such amount as the port commission may
direct. Such incidental expense fund may be kept and maintained in a bank or banks designated in the resolution creating
the fund, and such depository shall be required to give bonds
or securities to the port district for the protection of such incidental expense fund, in the full amount of the fund authorized
by the said resolution. Vouchers shall be drawn to reimburse
said incidental expense fund and such vouchers shall be
approved by the port commission. Transient labor, freight,
express, cartage, postage, petty supplies, and minor expenses
of the port district may be paid from said incidental expense
fund and all such disbursements therefrom shall be by check
of the port auditor or such other officer as the port commission shall by resolution direct. All expenditures from said
incidental expense fund shall be covered by vouchers drawn
by the port auditor and approved by the manager or such
other officer of the port district as the port commission may
by resolution direct. The officer disbursing said fund shall be
required to give bond to the port district in the full authorized
amount of the said incidental expense fund for the faithful
performance of his duties in connection with the disbursement of moneys from such fund. [1933 c 189 § 16; RRS §
9699-1.]
53.36.070
53.36.070 Levy for dredging, canal construction, or
land leveling or filling purposes. Any port district organized under the laws of this state shall, in addition to the powers otherwise provided by law, have the power to raise revenue by the levy and collection of an annual tax on all taxable
property within such port district of not to exceed forty-five
cents per thousand dollars of assessed value against the
assessed valuation of the taxable property in such port district, for dredging, canal construction, or land leveling or filling purposes, the proceeds of any such levy to be used exclusively for such dredging, canal construction, or land leveling
and filling purposes: PROVIDED, That no such levy for
dredging, canal construction, or land leveling or filling purposes under the provisions of RCW 53.36.070 and 53.36.080
shall be made unless and until the question of authorizing the
making of such additional levy shall have been submitted to
a vote of the electors of the district in the manner provided by
(2004 Ed.)
Finances
law for the submission of the question of making additional
levies in school districts of the first class at an election held
under the provisions of *RCW 29.13.020 and shall have been
authorized by a majority of the electors voting thereon.
[1983 c 3 § 162; 1973 1st ex.s. c 195 § 57; 1965 ex.s. c 22 §
1; 1925 c 29 § 1; RRS § 9692-1.]
*Reviser's note: RCW 29.13.020 was recodified as RCW 29A.04.330
pursuant to 2003 c 111 § 2401, effective July 1, 2004.
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
53.36.080
53.36.080 Collection of levies for dredging, canal
construction, or land leveling or filling purposes. Whenever such additional levy for dredging, canal construction, or
land leveling or filling purposes shall have been authorized
by the electors of the district at an election, held subsequent
to the time of making the levy for the district for general purposes, in any year, such levy shall be certified by the port
commission in the manner provided by law for certifying levies for general purposes of the district, and shall be forthwith
spread and extended upon the tax rolls for the current year,
and the taxes so levied and extended shall be collected in the
manner provided by law for the collection of general taxes.
[1965 ex.s. c 22 § 2; 1925 c 29 § 2; RRS § 9692-2.]
Collection of taxes, generally: Chapter 84.56 RCW.
53.36.100
53.36.100 Levy for industrial development district
purposes—Notice—Petition—Election. (1) A port district
having adopted a comprehensive scheme of harbor improvements and industrial developments may thereafter raise revenue, for six years only, and a second six years if the procedures are followed under subsection (2) of this section, in
addition to all other revenues now authorized by law, by an
annual levy not to exceed forty-five cents per thousand dollars of assessed value against the assessed valuation of the
taxable property in such port district. In addition, if voters
approve a ballot proposition authorizing additional levies by
a simple majority vote, a port district located in a county bordering on the Pacific Ocean having adopted a comprehensive
scheme of harbor improvements and industrial developments
may impose these levies for a third six-year period. Said levies shall be used exclusively for the exercise of the powers
granted to port districts under chapter 53.25 RCW except as
provided in RCW 53.36.110. The levy of such taxes is herein
authorized notwithstanding the provisions of RCW
84.52.050 and 84.52.043. The revenues derived from levies
made under RCW 53.36.100 and 53.36.110 not expended in
the year in which the levies are made may be paid into a fund
for future use in carrying out the powers granted under chapter 53.25 RCW, which fund may be accumulated and carried
over from year to year, with the right to continue to levy the
taxes provided for in RCW 53.36.100 and 53.36.110 for the
purposes herein authorized.
(2) If a port district intends to levy a tax under this section for one or more years after the first six years these levies
were imposed, the port commission shall publish notice of
this intention, in one or more newspapers of general circulation within the district, by June 1 of the year in which the first
levy of the seventh through twelfth year period is to be made.
If within ninety days of the date of publication a petition is
filed with the county auditor containing the signatures of
(2004 Ed.)
53.36.130
eight percent of the number of voters registered and voting in
the port district for the office of the governor at the last preceding gubernatorial election, the county auditor shall canvass the signatures in the same manner as prescribed in
*RCW 29.79.200 and certify their sufficiency to the port
commission within two weeks. The proposition to make these
levies in the seventh through twelfth year period shall be submitted to the voters of the port district at a special election,
called for this purpose, no later than the date on which a primary election would be held under *RCW 29.13.070. The
levies may be made in the seventh through twelfth year
period only if approved by a majority of the voters of the port
district voting on the proposition. [1994 c 278 § 1; 1982 1st
ex.s. c 3 § 1; 1979 c 76 § 1; 1973 1st ex.s. c 195 § 58; 1957 c
265 § 1.]
*Reviser's note: RCW 29.79.200 and 29.13.070 were recodified as
RCW 29A.72.230 and 29A.04.310, respectively, pursuant to 2003 c 111 §
2401, effective July 1, 2004. RCW 29A.04.310 was subsequently repealed
by 2004 c 271 § 193.
Effective date—1982 1st ex.s. c 3: "This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the
state government and its existing public institutions, and shall take effect
April 1, 1982." [1982 1st ex.s. c 3 § 3.]
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
Levy by port district under RCW 53.36.100—Application of chapter 84.55
RCW: RCW 84.55.045.
53.36.110
53.36.110 Levy for industrial development district
purposes—Excess funds to be used solely for retirement
of general obligations. In the event the levy herein authorized shall produce revenue in excess of the requirements to
complete the projects of a port district then provided for in its
comprehensive scheme of harbor improvements and industrial developments or amendments thereto, said excess shall
be used solely for the retirement of general obligation bonded
indebtedness. [1957 c 265 § 2.]
53.36.120
53.36.120 Expenditures for industrial development,
trade promotion, or promotional hosting—Budgeting
required. Under the authority of Article VIII, section 8, of
the state Constitution, port district expenditures for industrial
development, trade promotion or promotional hosting shall
be pursuant to specific budget items as approved by the port
commission at the annual public hearings on the port district
budget. [1967 c 136 § 1.]
53.36.130
53.36.130 Expenditures for industrial development,
trade promotion, or promotional hosting—Source and
amount of funds. Funds for promotional hosting expenditures shall be expended only from gross operating revenues
and shall not exceed one percent thereof upon the first two
million five hundred thousand dollars of such gross operating
revenues, one-half of one percent upon the next two million
five hundred thousand dollars of such gross operating revenues, and one-fourth of one percent on the excess over five
million dollars of such operating revenues: PROVIDED,
HOWEVER, That in no case shall these limitations restrict a
port district to less than twenty-five hundred dollars per year
from any funds available to the port. [1967 c 136 § 2.]
[Title 53 RCW—page 41]
53.36.140
Title 53 RCW: Port Districts
53.36.140
53.36.140 Expenditures for industrial development,
trade promotion, or promotional hosting—Rules and regulations—Authorizations—Vouchers. Port commissions
shall adopt, in writing, rules and regulations governing promotional hosting expenditures by port employees or agents.
Such rules shall identify officials and agents authorized to
make such expenditures and the approved objectives of such
spending. Port commissioners shall not personally make such
expenditures, or seek reimbursement therefor, except where
specific authorization of such expenditures has been
approved by the port commission. All payments and reimbursements shall be identified and supported on vouchers
approved by the port auditor. [1967 c 136 § 3.]
53.36.150
53.36.150 Expenditures for industrial development,
trade promotion, or promotional hosting—Duties of state
auditor. The state auditor shall, as provided in chapter 43.09
RCW:
(1) Audit expenditures made pursuant to RCW
53.36.120 through 53.36.150; and
(2) Promulgate appropriate rules and definitions as a part
of the uniform system of accounts for port districts to carry
out the intent of RCW 53.36.120 through 53.36.150: PROVIDED, That such accounts shall continue to include "gross
operating revenues" which shall be exclusive of revenues
derived from any property tax levy except as provided in
RCW 53.36.130. [1967 c 136 § 4.]
Chapter 53.40
Chapter 53.40 RCW
REVENUE BONDS AND WARRANTS
Sections
53.40.010
53.40.020
53.40.030
53.40.040
53.40.050
53.40.110
53.40.120
53.40.125
53.40.130
53.40.135
53.40.140
53.40.150
Revenue bonds authorized.
Purposes for which bonds may be issued and sold.
Bonds—Term, form, etc.
Bonds payable solely out of revenues—Special funds.
Sale of bonds to federal government.
Interest, signatures, sale of bonds—Covenants—Safeguards—
Enforcement.
Irregularity in bonds or use of funds no defense.
District may mortgage industrial development facility.
Funding, refunding bonds.
Revenue warrants.
Construction of chapter.
Validation—1959 c 183.
53.40.010
53.40.010 Revenue bonds authorized. The port commission of any port district is authorized for the purpose of
carrying out the lawful powers granted port districts by the
laws of the state to contract indebtedness and to issue revenue
bonds evidencing such indebtedness in conformity with this
chapter. [1959 c 183 § 1; 1957 c 59 § 1; 1949 c 122 § 1; Rem.
Supp. 1949 § 9711-1.]
Alternative authority to issue revenue bonds: RCW 39.46.150, 39.46.160.
Declaratory judgments of local bond issues: Chapter 7.25 RCW.
Funds for reserve purposes may be included in issue amount: RCW
39.44.140.
53.40.020
53.40.020 Purposes for which bonds may be issued
and sold. All such revenue bonds authorized under the terms
of this chapter may be issued and sold by the port district
from time to time and in such amounts as is deemed necessary by the port commission to provide sufficient funds for
[Title 53 RCW—page 42]
the carrying out of all port district powers, and without limiting the generality thereof, shall include the following:
Acquisition, construction, reconstruction, maintenance,
repair, additions and operation of port properties and facilities, including in the cost thereof engineering, inspection,
accounting, fiscal and legal expenses; the cost of issuance of
bonds, including printing, engraving and advertising and
other similar expenses; payment of interest on the outstanding bonds issued for any project during the period of actual
construction and for six months after the completion thereof,
and the proceeds of such bond issue are hereby made available for all such purposes. "Port property and facilities," as
used in this section, includes facilities for the freezing or processing of agricultural products. [1987 c 289 § 2; 1959 c 183
§ 2; 1957 c 59 § 3. Prior: 1949 c 122 § 2, part; Rem. Supp.
1949 § 9711-2, part.]
53.40.030
53.40.030 Bonds—Term, form, etc. (1) The port commission shall determine the form, conditions, and denominations of all such bonds, the maturity date or dates which the
bonds so sold shall bear, and the interest rate or rates thereon.
It shall not be necessary that all bonds of the same authorized
issue bear the same interest rate or rates. Principal and interest of the bonds shall be payable at such place or places as
may be fixed and determined by the port commission. The
bonds may contain provisions for registration thereof as to
principal only or as to both principal and interest as provided
in RCW 39.46.030. The bonds shall have interest payable at
such time or times as may be determined by the port commission and in such amounts as it may prescribe. The port commission may provide for retirement of bonds issued under
this chapter at any time or times prior to their maturity, and in
such manner and upon the payment of such premiums as may
be fixed and determined by resolution of the port commission. The port commission may delegate authority to the
chief executive officer of the port to approve the interest rate
or rates, maturity date or dates, redemption rights, interest
payment dates, and principal maturities under such terms and
conditions approved by resolution of the port commission.
(2) Notwithstanding subsection (1) of this section, such
bonds may be issued and sold in accordance with chapter
39.46 RCW. [2000 c 181 § 1; 1983 c 167 § 137; 1970 ex.s. c
56 § 73; 1969 ex.s. c 232 § 37; 1959 c 183 § 3; 1957 c 59 § 4.
Prior: 1949 c 122 § 2, part; Rem. Supp. 1949 § 9711-2, part.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Purpose—1970 ex.s. c 56: See note following RCW 39.52.020.
Validation—Saving—Severability—1969 ex.s. c 232: See notes following RCW 39.52.020.
Bonds—Form, terms of sale, payment, etc.: Chapter 39.44 RCW.
53.40.040 Bonds payable solely out of revenues—
Special funds. Bonds issued under the provisions of this
chapter shall be payable solely out of operating revenues of
the port district. Such bonds shall be authorized by resolution
adopted by the port commission, which resolution shall create a special fund or funds into which the port commission
may obligate and bind the port district to set aside and pay
any part or parts of, or all of, or a fixed proportion of, or a
fixed amount of the gross revenue of the port district for the
purpose of paying the principal of and interest on such bonds
53.40.040
(2004 Ed.)
Revenue Bonds and Warrants
as the same shall become due, and if deemed necessary to
maintain adequate reserves therefor. Such fund or funds shall
be drawn upon solely for the purpose of paying the principal
and interest upon the bonds issued pursuant to this chapter.
The bonds shall be negotiable instruments within the
provisions and intent of the negotiable instruments law of this
state, even though they shall be payable solely from such special fund or funds, and the tax revenue of the port district may
not be used to pay, secure, or guarantee the payment of the
principal of and interest on such bonds. The bonds and any
coupons attached thereto shall state upon their face that they
are payable solely from such special fund or funds. If the port
commission fails to set aside and pay into such fund or funds
the payments provided for in such resolution, the owner of
any such bonds may bring suit to compel compliance with the
provisions of the resolution. [1983 c 167 § 138; 1959 c 183 §
4; 1957 c 59 § 5; 1949 c 122 § 4; Rem. Supp. 1949 § 9711-4.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Negotiable instruments—Uniform Commercial Code: Title 62A RCW.
53.40.050
53.40.050 Sale of bonds to federal government. Port
districts may, but are not required by the terms of this chapter
to do so, sell any or all such bonds issued pursuant to this
chapter to the federal government, or any agency of the federal government, at private sale and without the necessity of
public advertisement or calling for bids. [1959 c 183 § 5;
1957 c 59 § 6; 1949 c 122 § 3; Rem. Supp. 1949 § 9711-3.]
Bonds sold to government at private sale: Chapter 39.48 RCW.
53.40.110
53.40.110 Interest, signatures, sale of bonds—Covenants—Safeguards—Enforcement. (1) The bonds issued
pursuant to the provisions of this chapter shall bear interest at
such rate or rates as authorized by the port commission; shall
be signed on behalf of the port district by the president of the
port commission and shall be attested by the secretary of the
port commission, one of which signatures may be a facsimile
signature, and shall have the seal of the port district
impressed thereon; any interest coupons attached thereto
shall be signed by the facsimile signatures of said officials.
Such bonds shall be sold in the manner and at such price as
the port commission shall deem best, either at public or private sale.
The port commission may provide such covenants as it
may deem necessary to secure the payment of the principal of
and interest on such bonds and may but shall not be required
to include covenants to create a reserve fund or account and
to authorize the payment or deposit of certain moneys therein
for the purpose of securing the payment of such principal and
interest; to establish, maintain, and collect tariffs, rates,
charges, fees, rentals, and sales prices on facilities and services the income of which is pledged for the payment of such
bonds, sufficient to pay or secure the payment of such principal and interest and to maintain an adequate coverage over
annual debt service; and to make any and all other covenants
not inconsistent with the provisions of this chapter which will
increase the marketability of such bonds. The port commission may also provide that revenue bonds payable out of the
same source or sources may later be issued on a parity with
any revenue bonds being issued and sold. The provisions of
(2004 Ed.)
53.40.130
this chapter and any resolution or resolutions providing for
the authorization, issuance, and sale of such bonds shall constitute a contract with the owners of such bonds, and the provisions thereof shall be enforceable by any owner of such
bonds by mandamus or any appropriate suit, action or proceeding at law or in equity in any court of competent jurisdiction.
(2) Notwithstanding subsection (1) of this section, such
bonds may be issued and sold in accordance with chapter
39.46 RCW. [1983 c 167 § 139; 1970 ex.s. c 56 § 74; 1969
ex.s. c 232 § 38; 1959 c 183 § 6; 1949 c 122 § 9; Rem. Supp.
1949 § 9711-8.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Purpose—1970 ex.s. c 56: See note following RCW 39.52.020.
Validation—Saving—Severability—1969 ex.s. c 232: See notes following RCW 39.52.020.
Mandamus: Chapter 7.16 RCW.
53.40.120
53.40.120 Irregularity in bonds or use of funds no
defense. The Reconstruction Finance Corporation, or any
other agency of the United States government making any
such loan, or any other holder or owner of any bonds issued
pursuant to this chapter, shall not be required to see to the
application of the moneys derived from such bonds to the
purposes for which the bonds are issued as specified in any
resolution authorizing the issuance thereof. No defense of
invalidity, or irregularity in any such bonds funded or
refunded by the issuance of bonds hereunder, shall be a valid
defense in any action at law or equity for a judgment upon or
for the enforcement or collection of any bonds issued pursuant to this chapter, and no court shall have jurisdiction to
entertain any such defense in any such action or proceeding.
[1957 c 59 § 10. Prior: 1949 c 122 § 7, part; Rem. Supp. 1949
§ 9711-6, part.]
53.40.125
53.40.125 District may mortgage industrial development facility. The port commission of any port district, as
security for the payment of the principal of and interest on
any revenue bonds issued and any agreements made in connection therewith, may mortgage, pledge, or otherwise
encumber the particular industrial development facility or
facilities or any part or parts thereof that are being financed
by the revenue bonds, whether then owned or thereafter
acquired, and may assign any mortgage and repledge any
security conveyed to the port district for that particular facility or facilities. [1987 c 289 § 1.]
53.40.130
53.40.130 Funding, refunding bonds. (1) The port
commission of any port district may by resolution, from time
to time, provide for the issuance of funding or refunding revenue bonds to fund or refund any outstanding revenue warrants, bonds, and any premiums and interest due thereon at or
before the maturity of such warrants or bonds, and may combine various outstanding revenue warrants and parts or all of
various series and issues of outstanding revenue bonds and
any matured coupons in the amount thereof to be funded or
refunded.
The port commission shall create a special fund for the
sole purpose of paying the principal of and interest on such
[Title 53 RCW—page 43]
53.40.135
Title 53 RCW: Port Districts
funding or refunding revenue bonds, into which fund the
commission shall obligate and bind the port district to set
aside and pay any part or parts of, or all of, or a fixed proportion of, or a fixed amount of the gross revenue of the port district sufficient to pay such principal and interest as the same
shall become due, and if deemed necessary to maintain adequate reserves therefor.
Such funding or refunding bonds shall be negotiable
instruments within the provisions and intent of the negotiable
instruments law of this state, and the tax revenue of the port
district may not be used to pay, secure, or guarantee the payment of the principal of and interest on such bonds. Such
bonds may be in any form, including bearer bonds or registered bonds as provided in RCW 39.46.030.
The port district may exchange such funding or refunding bonds for the warrants, bonds, and any coupons being
funded or refunded, or it may sell such funding or refunding
bonds in the manner, at such rate or rates of interest and at
such price as the port commission shall deem to be for the
best interest of the district and its inhabitants, either at public
or private sale.
The provisions of this chapter relating to the terms, conditions, covenants, issuance, and sale of revenue bonds shall
be applicable to such funding or refunding bonds except as
may be otherwise specifically provided in this section.
(2) Notwithstanding subsection (1) of this section, such
bonds may be issued and sold in accordance with chapter
39.46 RCW. [1983 c 167 § 140; 1970 ex.s. c 56 § 75; 1969
ex.s. c 232 § 39; 1959 c 183 § 7; 1949 c 122 § 8; Rem. Supp.
1949 § 9711-7.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Purpose—1970 ex.s. c 56: See note following RCW 39.52.020.
Validation—Saving—Severability—1969 ex.s. c 232: See notes following RCW 39.52.020.
53.40.135 Revenue warrants. Port districts may also
issue revenue warrants for the same purposes for which they
may issue revenue bonds, and the provisions of this chapter
relating to the terms, conditions, covenants, issuance, and
sale of revenue bonds shall be applicable to such revenue
warrants. [1959 c 183 § 8.]
53.40.135
53.40.140 Construction of chapter. This chapter shall
be complete authority for the issuance of the bonds and warrants hereby authorized, and shall be liberally construed to
accomplish its purposes. Any restrictions, limitations or regulations relative to the issuance of such bonds or warrants
contained in any other act shall not apply to the bonds or warrants issued under this chapter. Any act inconsistent herewith
shall be deemed modified to conform with the provisions of
this chapter for the purpose of this chapter only. [1949 c 122
§ 10; Rem. Supp. 1949 § 9711-9.]
53.40.140
53.40.150 Validation—1959 c 183. Any sale of revenue bonds or warrants of port districts heretofore made,
whether at public or private sale and whether at par or less
than par as authorized herein, and any terms, conditions, and
covenants of any revenue bonds or warrants of port districts
heretofore issued, are hereby declared to be valid, legal, and
binding in all respects: PROVIDED, HOWEVER, That this
53.40.150
[Title 53 RCW—page 44]
section shall not be construed to exonerate any officer or
agent of any such district from any liability for any acts
which were committed fraudulently or in bad faith. [1959 c
183 § 9.]
Chapter 53.44 RCW
FUNDING AND REFUNDING INDEBTEDNESS—
1947 ACT
Chapter 53.44
Sections
53.44.010
53.44.030
Funding and refunding authorized.
Maturities—Payment.
Funding and refunding revenue bonds: RCW 53.40.130.
Public bonds, form, terms of sale, payment, etc.: Chapter 39.44 RCW.
53.44.010
53.44.010 Funding and refunding authorized. The
board of commissioners of any port district of the state may
fund or refund any of the general bonded indebtedness and/or
warrants of the district now or hereafter existing and accrued
interest thereon, and may combine various series and/or
issues of warrants and/or bonds into a single issue of funding
or refunding bonds, by the issuance of general obligation
funding or refunding bonds, when the board, by resolution,
finds, determines, and declares that such proposed funding or
refunding will inure to the benefit and credit of the district
and will not result in an increase of the district's indebtedness
or in an increase in the rate of interest borne by the indebtedness so funded or refunded. Such funding or refunding may
be accomplished by the sale of said funding or refunding
bonds or by their exchange for the bonds and/or warrants to
be refunded. General obligation bonds of a port district which
do not provide for prior redemption, may also be refunded
with the consent of the holders thereof. Such bonds shall be
issued in accordance with chapter 39.46 RCW. [1984 c 186
§ 42; 1947 c 239 § 1; Rem. Supp. 1947 § 5623-1.]
Purpose—1984 c 186: See note following RCW 39.46.110.
53.44.030
53.44.030 Maturities—Payment. Such funding or
refunding bonds shall run for a period of not exceeding
twenty years from date thereof. The board may apply to the
payment of the funding or refunding bonds and to the prior
redemption thereof any other moneys or funds belonging to
the district which are legally available for such purpose.
[1984 c 186 § 43; 1947 c 239 § 3; Rem. Supp. 1947 § 56233.]
Purpose—1984 c 186: See note following RCW 39.46.110.
Chapter 53.46
Chapter 53.46 RCW
CONSOLIDATION
Sections
53.46.005
53.46.010
53.46.020
53.46.030
53.46.040
53.46.050
53.46.060
53.46.070
Definitions.
Consolidation authorized—Petition or resolution, contents.
Special election—Conduct.
Certification of election—Establishment as municipal corporation—Commissioners, terms.
Prior obligations—Powers of consolidated district—Separation of funds.
County commissioners may act if no active port commission.
Dissolution of district which has no active commission—
Authority of county commissioners.
Title to property vests in consolidated district.
(2004 Ed.)
Consolidation
53.46.080
53.46.090
53.46.100
District including area from two or more counties—Procedure
to determine proportion of taxes.
District including area from two or more counties—Levy and
collection of taxes—Principal county treasurer, duties.
General powers of consolidated district—Debt limitation.
53.46.005 Definitions. As used in this chapter the term
"principal county auditor" and "principal county treasurer"
shall be the county auditor or county treasurer in the county
having the largest assessed valuation of the total of the proposed consolidated port district. [1965 c 102 § 1.]
53.46.005
53.46.010
53.46.010 Consolidation authorized—Petition or resolution, contents. Two or more port districts may be joined
into one consolidated port district in the following manner:
The port commissioners of each of the port districts proposed
to be consolidated may, or on petition of ten percent of the
qualified electors residing within each of the districts proposed to be consolidated based on the total vote cast in the
last general election, shall, by joint resolution submit to the
qualified electors of the port districts to be consolidated the
proposition of consolidating such districts into one port district. Such resolution or petition in request thereof shall identify each port district to be consolidated, listing its assets and
liabilities; state the name by which the port district resulting
from the consolidation shall be known; legally describe each
port commissioner district to be created within the port district resulting from the consolidation; state the terms and conditions, if any, under which the consolidation is proposed;
and call a special election in the territory of the port districts
to be consolidated, to determine whether such consolidation
shall take place, and to fill the offices of the port commission
of the port district resulting from the consolidation. The resolution or petition shall provide that the commission in the
proposed district shall consist of three, five, or seven commissioners and that the number shall be approved by the voters at the time the proposition for consolidation is voted
upon. The proposition in this respect shall provide that the
commissioners shall be elected one each from commissioner
districts which shall be described as set forth in this section,
or if such districts are not so described then the commissioners shall be elected at large. [1965 c 102 § 2; 1961 c 26 § 1.]
53.46.020
53.46.020 Special election—Conduct. The special
election to consider such consolidation and to fill such offices
shall be conducted in accordance with the general election
laws of the state. [1990 c 259 § 20; 1965 c 102 § 3; 1961 c 26
§ 2.]
53.46.070
tificates of election shall be issued by the principal county
auditor, and the canvassing board of elections shall be made
up of the chairmen of the board of county commissioners,
prosecutors, and the auditors of each county with area within
the consolidated port district. Of the successful port commissioner candidates, if three are elected, the one receiving the
highest number of votes shall serve until his successor is
elected and qualified at the third subsequent regular election
for port commissioner, and the ones receiving the second and
third highest numbers of votes shall serve until their successors are elected and qualified at the second and first subsequent regular elections for port commissioner, respectively.
If five or seven commissioners are elected, the two with the
greatest number of votes shall serve until their successors are
elected and qualified at the third subsequent regular election
of port commissioners, the two commissioners receiving the
next highest number of votes shall serve until their successors
are elected and qualified at the second subsequent regular
election of port commissioners; and the remaining commissioner or commissioners shall serve until their successors are
elected and qualified at the next regular election of port commissioners. [1965 c 102 § 4; 1961 c 26 § 3.]
53.46.040
53.46.040 Prior obligations—Powers of consolidated
district—Separation of funds. None of the obligations of
each port district which has been consolidated shall be
affected by the consolidation, and taxes and assessments for
payment of such obligations shall continue to be levied and
collected in respect to property in such former port district
notwithstanding the consolidation. The port commission of
the port district resulting from the consolidation shall have all
the powers possessed at the time of the consolidation by the
port commission of each port district which has been consolidated, to levy or collect taxes or assessments in respect to
property in such former port district, for payment of such
obligations. While any such obligations remain outstanding,
funds subject to such obligations shall be kept separate.
[1961 c 26 § 4.]
53.46.050
53.46.050 County commissioners may act if no active
port commission. In the event a port district does not have
an active port commission to which the petition for consolidation may be directed, the board of county commissioners of
the county wherein such inactive port district is located may
act in the place and stead of the port commission for the purposes of consolidation. [1961 c 26 § 5.]
53.46.060
53.46.030
53.46.030 Certification of election—Establishment
as municipal corporation—Commissioners, terms. The
county canvassing board of election returns shall certify the
results of the election to the board of county commissioners;
and if at such election a majority of voters voting on the question of consolidation in each port district to be consolidated
shall vote in favor of consolidation, the board of county commissioners shall so declare, and the port district resulting
from the consolidation shall then be and become a municipal
corporation of the state of Washington. The county auditor
shall in such event issue a certificate of election to the successful candidate from each port commissioner district. If the
proposed district includes area in two or more counties, cer(2004 Ed.)
53.46.060 Dissolution of district which has no active
commission—Authority of county commissioners. For the
purpose of dissolution of any port district not having an
active port commission the board of county commissioners of
the county wherein such inactive port district is located may
exercise the powers and duties vested by chapter 53.48 RCW
in the governing body of such port district. [1961 c 26 § 6.]
53.46.070
53.46.070 Title to property vests in consolidated district. Upon consolidation of two or more port districts the
title to all property owned by or held in trust for the former
districts shall vest in the consolidated port district. [1965 c
102 § 5.]
[Title 53 RCW—page 45]
53.46.080
Title 53 RCW: Port Districts
53.46.080
53.46.080 District including area from two or more
counties—Procedure to determine proportion of taxes. If
the district includes area from two or more counties, it shall
be the duty of the county assessor in each county to certify
annually to the auditor of his county, who shall forward the
same to the principal county auditor, the total assessed valuation of that part of the port district which lies within his
county. The port commission of such consolidated port district shall certify to the principal county auditor the budget
and the levies to be assessed for port purposes: PROVIDED,
That the amount of tax to be levied upon taxable property of
that part of a port district lying in one county shall be in such
ratio to the whole amount levied upon the property lying in
the entire consolidated port district as the assessed valuation
lying in such county bears to the assessed valuation of the
property in the entire consolidated port district.
Thereafter the principal county auditor shall forward a
certificate to each county auditor, for the county commissioners thereof, which shall specify the proportion of taxes to be
levied for port district purposes. [1965 c 102 § 6.]
53.46.090
53.46.090 District including area from two or more
counties—Levy and collection of taxes—Principal county
treasurer, duties. Upon receipt of the certificate from the
principal county auditor as provided in RCW 53.46.080 it
shall be the duty of the board of county commissioners of
each county to levy on all taxable property of the consolidated port district which lies within the county a tax sufficient
to raise the amount necessary to meet the county's proportionate share of the total tax levy. Such taxes shall be levied
and collected in the same manner as other taxes are levied
and collected. The proceeds shall be forwarded quarterly by
the treasurer of each county to the principal county treasurer.
The principal county treasurer shall place to the credit of said
consolidated port district all funds received from the other
county treasurers as well as those amounts he shall have collected for the account of the port district. The principal
county treasurer shall be the treasurer of the consolidated port
district and shall perform all functions required of a treasurer
of a port district. [1965 c 102 § 7.]
53.47.040
53.47.050
53.47.900
Hearing on petition—Notice, publication—Creditor claims,
determination—Terms and conditions of court order if district to be dissolved.
Effect of final order of dissolution.
Chapter cumulative and nonexclusive.
Dissolution of inactive special purpose districts: Chapter 36.96 RCW.
53.47.010
53.47.010 Purpose. This chapter shall provide an additional method by which inactive port districts may be dissolved. [1971 ex.s. c 162 § 1.]
53.47.020
53.47.020 Port district deemed inactive, when. A port
district shall be deemed inactive if, at the time of the filing of
the petition for dissolution with the clerk of the superior court
of the county in which such port district is situated, such port
has failed to comply with subdivision (1), (2), or (3) of this
section.
(1) The port district has failed to file its budget with the
board of county commissioners or, in the case of home rule
charters, the appropriate governing body for the two fiscal
years immediately preceding the date of filing such petition,
and the port district, having been in existence for two years or
more, has failed to adopt its comprehensive plan of harbor
improvement and/or industrial development as provided by
statute, and does not presently own or has not leased within
two years prior to the filing of such petition, real property for
use for port purposes.
(2) The port district does not presently own or has not
leased or owned real property for use for port purposes within
the four calendar years prior to the filing of such petition.
(3) The port district has not filed its budget with the
board of county commissioners or, in the case of home rule
charters, the appropriate governing body for the two fiscal
years immediately preceding the filing of said petition has
not adopted its comprehensive plan of harbor improvement
and/or industrial development as provided by statute, and has
not met with a legal quorum at least twice in the last two calendar years prior to the filing of such petition. [1971 ex.s. c
162 § 2.]
Harbor improvement plan: RCW 53.20.010.
53.47.030
53.46.100
53.46.100 General powers of consolidated district—
Debt limitation. Any port district created by consolidation
prior to June 10, 1965, or formed hereafter under chapter 102,
Laws of 1965, shall have all the powers of a newly formed
port district, without any other restriction except the requirements of RCW 53.46.040: PROVIDED, That general obligation indebtedness outstanding for all port purposes within the
area of the consolidated port shall not exceed the limits of
RCW 53.36.030, and for purpose of computing such bonded
debt, the bonds outstanding of all port agencies shall be considered. [1965 c 102 § 8.]
Chapter 53.47
Chapter 53.47 RCW
DISSOLUTION OF INACTIVE PORT DISTRICTS
Sections
53.47.010
53.47.020
53.47.030
Purpose.
Port district deemed inactive, when.
Petition for dissolution—Filing—Contents.
[Title 53 RCW—page 46]
53.47.030 Petition for dissolution—Filing—Contents. The county prosecutor of the county in which such
port district is located acting upon his own motion shall file
such petition for dissolution with the clerk of the superior
court of the county in which such inactive port district is
located. Such petition shall:
(1) Describe with certainty the port district which is
declared to be inactive and which is sought to be dissolved;
(2) Allege with particularity that the port district sought
to be dissolved is inactive within the purview of any of the
several particulars set forth in RCW 53.47.020; and
(3) Request that the court find the port district inactive
and declare it dissolved upon such terms and conditions as
the court may impose and declare. [1971 ex.s. c 162 § 3.]
53.47.040
53.47.040 Hearing on petition—Notice, publication—Creditor claims, determination—Terms and conditions of court order if district to be dissolved. The superior
court, upon the filing of such petition, shall set such petition
for hearing not less than one hundred twenty days and not
(2004 Ed.)
Dissolution of Port and Other Districts
more than one hundred eighty days after the date of filing
said petition. Further, the court shall order the clerk of said
court to give notice of the time and place fixed for the hearing
by publication of notice in a newspaper of general circulation
within such district, such publication to be once each week
for three consecutive weeks, the date of first publication to be
not less than thirty nor more than seventy days prior to the
date fixed for the hearing upon such petition. Said notice
shall further provide that all creditors of said district, including holders of revenue or general obligation bonds issued by
said district, if any, shall present their claims to the clerk of
said court within ninety days from the date of first publication
of said notice, and that upon failure to do so all such claims
will be forever barred. The clerk shall also mail a copy by
ordinary mail of such notice to all creditors of said district,
including holders of revenue or general obligation bonds
issued by said district, if any, such mailing to be mailed not
later than thirty days after the hearing date has been set. No
other or further notices shall be required at any stage of the
proceedings for dissolution of an inactive port district pursuant to this chapter.
The clerk, ten days prior to the date set for the hearing,
shall deliver to the court the following:
(1) A list of the liabilities of the port district in detail with
the names and addresses of creditors as then known; and
(2) A list of the assets of the port district in detail as then
known.
The court upon hearing the petition shall fix and determine all such claims subject to proof being properly filed as
provided in this section; shall fix and determine the financial
condition of the district as to its assets and liabilities, and if it
finds the port district to be inactive in respect of any standard
of inactivity set forth by this chapter, shall order the port district to be dissolved upon the following terms and conditions:
(1) If there be no outstanding debts, or if the debts be less
than the existing assets, the court shall appoint the auditor of
the county in which the port district is located to be trustee of
the port's assets and shall empower such person to wind up
and liquidate the affairs of such district in such manner as the
court shall provide and to file his accounting with the court
within ninety days from the date of his appointment. Upon
the filing of such account, the court shall fix a date for hearing upon the same and upon approval thereof, if such
accounting be the final accounting, shall enter its order
approving the same and declaring the port district dissolved.
At the request of the trustee the county sheriff may sell,
at public auction, all real and personal property of the port
district. The county sheriff shall cause a notice of such sale
fixing the time and place thereof which shall be at a suitable
place, which will be noted in the advertisement for sale. Such
notice shall contain a description of the property to be sold
and shall be signed by the sheriff or his deputy. Such notice
shall be published at least once in an official newspaper in
said county at least ten days prior to the date fixed for said
sale. The sheriff or his deputy shall conduct said sale and sell
the property described in the notice at public auction to the
highest and best bidder for cash, and upon payment of the
amount of such bid shall deliver the said property to such bidder. The moneys arising from such sale shall be turned over
to the county auditor acting as trustee: PROVIDED, HOWEVER, That the sheriff shall first deduct the costs and
(2004 Ed.)
Chapter 53.48
expenses of the sale from the moneys and shall apply such
moneys to pay said costs and expenses.
The court order shall provide that the assets remaining in
the hands of the trustee shall be transferred to any school district, districts, or portions of districts, lying within the dissolved port district boundaries. The transfer of assets shall be
prorated to the districts based on the assessed valuation of
said districts.
(2) If the debts exceed the assets of the port district, then
the court shall appoint the auditor of the county in which a
port district is located to be trustee of the port's assets for the
purpose of conserving the same and of paying liability of the
port district as funds become available therefor. The trustee
shall be empowered to generally manage, wind up, and liquidate the affairs of such district in such manner as the court
shall provide and to file his accounting with the court within
ninety days from the date of his appointment and as often
thereafter as the court shall provide. The board of county
commissioners, acting as pro tempore port district commissioners under the authority of RCW 53.36.020 shall levy an
annual tax not exceeding forty-five cents per thousand dollars of assessed value or such lesser amount as may previously have been voted by the taxpayers within said district,
together with an amount deemed necessary for payment of
the costs and expenses attendant upon the dissolution of said
district, upon all the taxable property within said district, the
amount of such levy to be determined from time to time by
the court. When, as shown by the final accounting of the
trustee, all of the indebtedness of the district shall have been
satisfied, the cost and expense of the proceeding paid or provided for, and the affairs of the district wound up, the court
shall declare the district dissolved: PROVIDED, That if the
indebtedness be composed in whole or in part of bonded debt
for which a regular program of retirement has been provided,
then the board of county commissioners shall be directed by
the court to continue to make such annual levies as are
required for the purpose of debt service upon said bonded
debt. [1973 1st ex.s. c 195 § 59; 1971 ex.s. c 162 § 4.]
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
53.47.050
53.47.050 Effect of final order of dissolution. Upon
the entry of the final order of dissolution declaring the port
district dissolved all offices of the port district shall be
deemed abolished, and no other or further levy shall be certified by the county commissioners except pursuant to the
directive of the court as hereinabove provided. [1971 ex.s. c
162 § 5.]
53.47.900
53.47.900 Chapter cumulative and nonexclusive. The
provisions of this chapter shall be cumulative and nonexclusive and shall not affect any other remedy. [1971 ex.s. c 162
§ 6.]
Chapter 53.48 RCW
DISSOLUTION OF PORT AND OTHER DISTRICTS
Chapter 53.48
Sections
53.48.001
53.48.010
Dissolution of certain districts subject to review by boundary
review board.
Definitions.
[Title 53 RCW—page 47]
53.48.001
53.48.020
53.48.030
53.48.040
53.48.050
53.48.060
53.48.070
53.48.080
53.48.090
53.48.120
53.48.140
Title 53 RCW: Port Districts
Petition.
Order for hearing—Notice.
Order of dissolution—Sale of assets.
Payment of debts and costs—Balance to school district.
Insolvency—Second hearing.
Notice of second hearing.
Sale of property—Levy to pay deficit.
Order of dissolution or refusal.
Provision for costs and expenses.
Dissolution of district which has no active commission—Powers of county commissioners.
Dissolution of
air pollution control authorities: RCW 70.94.260.
cemetery districts: RCW 68.52.320.
fire protection districts, election method: RCW 52.10.010.
flood control districts: 1937 act—RCW 86.09.622, 86.09.625.
inactive special purpose districts: Chapter 36.96 RCW.
irrigation districts: Chapters 87.52, 87.53, 87.56 RCW.
metropolitan park districts: RCW 35.61.310.
soil conservation districts: RCW 89.08.350 through 89.08.370.
water-sewer districts, election method: RCW 57.04.090, 57.04.100, and
chapter 53.48 RCW.
majority of the board of commissioners, or other governing
authority of such district shall be presented to the superior
court of the county in which the board of commissioners is
situated. [1941 c 87 § 2; Rem. Supp. 1941 § 8931-12.]
53.48.030
53.48.030 Order for hearing—Notice. Upon the filing
of such petition for an order of dissolution, the superior court
shall enter an order setting the same for hearing at a date not
less than thirty days from the date of filing, and the clerk of
the court of said county shall give notice of such hearing by
publication in a newspaper of general circulation in the
county in which the district is located once a week for three
successive weeks, and by posting in three public places in the
county in which the district is located at least twenty-one
days before said hearing. At least one notice shall be posted
in the district. The notices shall set forth the filing of the petition, its purpose and the date and place of the hearing thereon.
[1941 c 87 § 3; Rem. Supp. 1941 § 8931-13.]
53.48.001
53.48.001 Dissolution of certain districts subject to
review by boundary review board. The dissolution of a
metropolitan park district, fire protection district, watersewer district, or flood control zone district under chapter
53.48 RCW may be subject to potential review by a boundary
review board under chapter 36.93 RCW. [1999 c 153 § 62;
1989 c 84 § 46.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
53.48.010
53.48.010 Definitions. The following words and terms
shall, whenever used in this chapter, have the meaning set
forth in this section:
(1) The term "district" as used herein, shall include all
municipal and quasi-municipal corporations having a governing body, other than cities, towns, counties, and townships, such as port districts, school districts, water-sewer districts, fire protection districts, and all other special districts of
similar organization, but shall not include local improvement
districts, diking, drainage and irrigation districts, special districts as defined in RCW 85.38.010, nor public utility districts.
(2) The words "board of commissioners," as used herein,
shall mean the governing authority of any district as defined
in subdivision (1) of this section. [1999 c 153 § 63; 1986 c
278 § 17; 1979 ex.s. c 30 § 10; 1941 c 87 § 1; Rem. Supp.
1941 § 8931-11.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Severability—1986 c 278: See note following RCW 36.01.010.
Purpose—1941 c 87: "This act is intended to authorize the dissolution
of all types of municipal corporations having governing bodies, other than
those excepted from the application of this act, in cases where the occasion
or reason for continued existence of such corporation has ceased, or where
the best interests of all persons concerned would be served by such dissolution, and shall be liberally construed to effect such intent." [1941 c 87 § 12.]
Severability—1941 c 87: "If any provision of this act or the application
thereof to any person or circumstance is held invalid, such invalidity shall
not affect other provisions or applications of the act which can be given
effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable." [1941 c 87 § 11.]
53.48.020
53.48.020 Petition. For the purpose of dissolution of a
district, a petition for an order of dissolution signed by the
[Title 53 RCW—page 48]
53.48.040
53.48.040 Order of dissolution—Sale of assets. After
said hearing the court shall enter its order dissolving or refusing to dissolve said district. A finding that the best interests of
all persons concerned will be served by the proposed dissolution shall be essential to an order of dissolution. If the court
find that such district is solvent, the court shall order the sale
of such assets, other than cash, by the sheriff of the county in
which the board is situated, in the manner provided by law for
the sale of property on execution. [1941 c 87 § 4; Rem. Supp.
1941 § 8931-14.]
Execution: Chapter 6.17 RCW.
53.48.050
53.48.050 Payment of debts and costs—Balance to
school district. The proceeds of the sale, together with moneys on hand in the treasury of the district, shall after payment
of all costs and expenses, be paid to the treasurer of the same
county and placed to the credit of the school district, or districts, in which such district is situated. [1941 c 87 § 5; Rem.
Supp. 1941 § 8931-15.]
Port districts in counties with populations of from eight thousand to less than
twelve thousand—Disposition of funds: Chapter 53.49 RCW.
53.48.060
53.48.060 Insolvency—Second hearing. Upon a finding of insolvency the court shall then determine the indebtedness of the district, the creditors thereof and their claims. The
court shall then set a date and a place for a second hearing,
which hearing shall be not less than sixty days nor more than
one hundred twenty days from the hearing as provided in
RCW 53.48.030.
The purpose of such hearing shall be to determine ways
and means of retiring the established indebtedness of the district and paying all costs and expenses of proceedings hereunder. Such ways and means may include the levy of assessments against the property in the district as provided in RCW
53.48.080. [1941 c 87 § 6; Rem. Supp. 1941 § 8931-16.]
53.48.070
53.48.070 Notice of second hearing. The clerk shall
give notice of the second hearing by publication in a newspaper of general circulation in the county in which the district is
located once a week for three successive weeks, and by posting in three public places in the county in which the district is
(2004 Ed.)
Disposition of Funds on Dissolution of Certain Districts
located at least twenty-one days before the hearing, and shall
give such other notice to creditors and other interested parties
as the court may deem necessary or advisable. At least one
notice shall be posted in the district. The notices shall set
forth the filing of the petition, its purpose, the finding of the
court on the petition, the date and place of the second hearing
and the purpose of the hearing as stated in RCW 53.48.060.
[1941 c 87 § 7; Rem. Supp. 1941 § 8931-17.]
53.48.080
53.48.080 Sale of property—Levy to pay deficit. At
the second hearing the court shall have authority to order the
sale of any district property. If the proceeds of such sale
together with any cash remaining on hand to the credit of the
district are insufficient to retire such indebtedness together
with all costs and expenses, the court shall have authority to
order the board of commissioners to levy assessments in the
manner provided by law against the property in the district in
amounts sufficient to retire said indebtedness and pay the
costs and expenses. At such hearing any property owner
within the district may appear and be heard for or against
such levy. [1941 c 87 § 8; Rem. Supp. 1941 § 8931-18.]
53.48.090
53.48.090 Order of dissolution or refusal. After the
indebtedness of the district has been settled or paid, the court
shall determine whether the best interests of all persons concerned will be served by the proposed dissolution and shall
make a finding thereon. The court shall then enter its order
dissolving or refusing to dissolve said district. [1941 c 87 §
9; Rem. Supp. 1941 § 8931-19.]
53.54.030
district funds of all districts, which are located within the
boundaries of such port district. [1991 c 363 § 134; 1943 c
282 § 1; Rem. Supp. 1943 § 9718-10. Formerly RCW
53.48.100.]
Purpose—Captions not law—1991 c 363: See notes following RCW
2.32.180.
53.49.020
53.49.020 Port districts in counties with populations
of from eight thousand to less than twelve thousand—
Order to transfer funds. The superior court of any such
county shall enter his order authorizing such transfer of funds
if he is satisfied, after hearing the petition therefor, that the
port district is dissolved and disestablished or is about to be
dissolved and disestablished and that no obligations of the
port district remain unpaid. The court shall equitably divide
such sums of money between school districts if there be more
than one district involved. [1943 c 282 § 2; Rem. Supp. 1943
§ 9718-11. Formerly RCW 53.48.110.]
Chapter 53.54
Chapter 53.54 RCW
AIRCRAFT NOISE ABATEMENT
Sections
53.54.010
53.54.020
53.54.030
53.54.040
53.54.900
53.54.910
Programs for abatement of aircraft noise authorized.
Investigation and monitoring of noise impact—Programs to
conform to needs—"Impacted areas."
Authorized programs—When property deemed within
impacted area.
Fund authorized—Sources.
Liberal construction—Powers additional.
Severability—1974 ex.s. c 121.
53.48.120
53.48.120 Provision for costs and expenses. In all proceedings brought under this chapter the court shall make provision for the costs and expenses of proceedings hereunder
and for the payment of the same. [1941 c 87 § 10; Rem.
Supp. 1941 § 8931-20.]
53.48.140 Dissolution of district which has no active
commission—Powers of county commissioners. See
RCW 53.46.060.
53.48.140
Chapter 53.49 RCW
DISPOSITION OF FUNDS ON DISSOLUTION OF
CERTAIN DISTRICTS
Chapter 53.49
Sections
53.49.010
53.49.020
53.49.010
Port districts in counties with populations of from eight thousand to less than twelve thousand—Disposition of funds.
Port districts in counties with populations of from eight thousand to less than twelve thousand—Order to transfer funds.
53.49.010 Port districts in counties with populations
of from eight thousand to less than twelve thousand—Disposition of funds. Whenever any port district located in any
county with a population of from eight thousand to less than
twelve thousand shall be dissolved and disestablished or is
about to be dissolved and disestablished and any sums of
money remain in any of its funds, the port commissioners are
authorized and directed to apply by petition, which may be
filed without fee, to the superior court of such county for an
order authorizing the transfer of such funds to the school district fund or if there be more than one such district, the school
(2004 Ed.)
53.54.010
53.54.010 Programs for abatement of aircraft noise
authorized. A port district operating an airport serving more
than twenty scheduled jet aircraft flights per day may undertake any of the programs or combinations of such programs,
as authorized by this chapter, for the purpose of alleviating
and abating the impact of jet aircraft noise on areas surrounding such airport. [1974 ex.s. c 121 § 1.]
53.54.020
53.54.020 Investigation and monitoring of noise
impact—Programs to conform to needs—"Impacted
areas." Prior to initiating programs as authorized in this
chapter, the port commission shall undertake the investigation and monitoring of aircraft noise impact to determine the
nature and extent of the impact. The port commission shall
adopt a program of noise impact abatement based upon the
investigations and as amended periodically to conform to
needs demonstrated by the monitoring programs: PROVIDED, That in no case may the port district undertake any
of the programs of this chapter in an area which is more than
six miles beyond the paved end of any runway or more than
one mile from the centerline of any runway or from an imaginary runway centerline extending six miles from the paved
end of such runway. Such areas as determined above, shall be
known as "impacted areas". [1984 c 193 § 1; 1979 c 85 § 1;
1974 ex.s. c 121 § 2.]
53.54.030
53.54.030 Authorized programs—When property
deemed within impacted area. For the purposes of this
chapter, in developing a remedial program, the port commission may utilize one or more of the following programs:
[Title 53 RCW—page 49]
53.54.040
Title 53 RCW: Port Districts
(1) Acquisition of property or property rights within the
impacted area, which shall be deemed necessary to accomplish a port purpose. The port district may purchase such
property or property rights by time payment notwithstanding
the time limitations provided for in RCW 53.08.010. The port
district may mortgage or otherwise pledge any such properties acquired to secure such transactions. The port district
may assume any outstanding mortgages.
(2) Transaction assistance programs, including assistance with real estate fees and mortgage assistance, and other
neighborhood remedial programs as compensation for
impacts due to aircraft noise and noise associated conditions.
Any such programs shall be in connection with properties
located within an impacted area and shall be provided upon
terms and conditions as the port district shall determine
appropriate.
(3) Programs of soundproofing structures located within
an impacted area. Such programs may be executed without
regard to the ownership, provided the owner waives damages
and conveys an easement for the operation of aircraft, and for
noise and noise associated conditions therewith, to the port
district.
(4) Mortgage insurance of private owners of lands or
improvements within such noise impacted area where such
private owners are unable to obtain mortgage insurance
solely because of noise impact. In this regard, the port district
may establish reasonable regulations and may impose reasonable conditions and charges upon the granting of such mortgage insurance: PROVIDED, That such fees and charges
shall at no time exceed fees established for federal mortgage
insurance programs for like service.
(5) An individual property may be provided benefits by
the port district under each of the programs described in subsections (1) through (4) of this section. However, an individual property may not be provided benefits under any one of
these programs more than once, unless the property is subjected to increased aircraft noise or differing aircraft noise
impacts that would have afforded different levels of mitigation, even if the property owner had waived all damages and
conveyed a full and unrestricted easement.
(6) Management of all lands, easements, or development
rights acquired, including but not limited to the following:
(a) Rental of any or all lands or structures acquired;
(b) Redevelopment of any such lands for any economic
use consistent with airport operations, local zoning and the
state environmental policy;
(c) Sale of such properties for cash or for time payment
and subjection of such property to mortgage or other security
transaction: PROVIDED, That any such sale shall reserve to
the port district by covenant an unconditional right of easement for the operation of all aircraft and for all noise or noise
conditions associated therewith.
(7) A property shall be considered within the impacted
area if any part thereof is within the impacted area. [1993 c
150 § 1; 1985 c 115 § 1; 1974 ex.s. c 121 § 3.]
programs authorized by this chapter, airport revenues; and
revenue bonds based upon such revenues. The port district
may also finance such fund, as necessary, in whole or in part,
with the proceeds of general obligation bond issues of not
more than one-eighth of one percent of the value of taxable
property in the port district: PROVIDED, That any such
bond issue shall be in addition to bonds authorized by RCW
53.36.030: PROVIDED FURTHER, That any such general
obligation bond issue may be subject to referendum by petition as provided by county charter, the same as if it were a
county ordinance. [1974 ex.s. c 121 § 4.]
53.54.900 Liberal construction—Powers additional.
The rule of strict construction shall have no application to this
chapter, which shall be liberally construed to carry out the
purposes and objects for which this chapter is intended. The
powers granted in this chapter shall be in addition to all others granted to port districts. [1974 ex.s. c 121 § 5.]
53.54.900
53.54.910 Severability—1974 ex.s. c 121. If any provision of this 1974 act or its application to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances
shall not be affected. [1974 ex.s. c 121 § 7.]
53.54.910
53.54.040 Fund authorized—Sources. A port district
may establish a fund to be utilized in effectuating the intent of
this chapter. The port district may finance such fund by: The
proceeds of any grants or loans made by federal agencies;
rentals, charges and other revenues as may be generated by
53.54.040
[Title 53 RCW—page 50]
(2004 Ed.)
Title 54
Chapters
54.04
54.08
54.12
54.16
54.20
54.24
54.28
54.32
54.36
54.40
54.44
54.48
54.52
Title 54
PUBLIC UTILITY DISTRICTS
General provisions.
Formation—Dissolution—Elections.
Commissioners.
Powers.
Condemnation proceedings.
Finances.
Privilege taxes.
Consolidation and annexation.
Liability to other taxing districts.
Five commissioner districts.
Nuclear, thermal, electric generating power
facilities—Joint development.
Agreements between electrical public utilities
and cooperatives.
Voluntary contributions to assist low-income
customers.
Acquisition of electrical distribution property from public utility district by
cities and towns: RCW 35.92.054.
Conversion of overhead electric utility to underground: Chapter 35.96
RCW, RCW 36.88.410 through 36.88.485.
Conveyance of real property by public bodies—Recording: RCW 65.08.095.
Credit card use by local governments: RCW 43.09.2855.
Electric energy, falling waters—Sale or purchase authorized: RCW
43.52.410.
Hospitalization and medical aid for public employees and dependents—Premiums, governmental contributions authorized: RCW 41.04.180,
41.04.190.
Joint operating agencies: Chapter 43.52 RCW.
Local governmental organizations, actions affecting boundaries, etc., review
by boundary review board: Chapter 36.93 RCW.
Municipal corporation may authorize investment of funds which are in custody of county treasurer or other municipal corporation treasurer:
RCW 36.29.020.
Municipal utilities: Chapter 35.92 RCW.
Public bodies may retain collection agencies to collect public debts—Fees:
RCW 19.16.500.
Water-sewer districts, disposition of property to public utility district:
Chapter 57.42 RCW.
Chapter 54.04
Chapter 54.04 RCW
GENERAL PROVISIONS
Sections
54.04.010
54.04.020
54.04.030
54.04.035
54.04.037
54.04.039
54.04.040
54.04.045
54.04.050
54.04.055
54.04.060
(2004 Ed.)
Definitions.
Districts authorized.
Restrictions on invading other municipalities.
Annexation of territory.
Annexation of territory—Coordination among county officials.
County with federal nuclear reservation within its boundaries—Special procedure for addition or withdrawal of territory from public utility district.
Utilities within a city or town—Restrictions.
Locally regulated utilities—Attachments to poles.
Group employee insurance—Annuities—Retirement income
policies.
Employee benefits—District may continue to pay premiums
after employee retires.
District elections.
54.04.070
54.04.080
54.04.082
54.04.085
54.04.090
54.04.092
54.04.100
54.04.120
54.04.130
54.04.140
54.04.150
54.04.160
54.04.170
54.04.180
Contracts for work or materials—Notice—Exemptions.
Bids—Deposit—Low bidder claiming error—Contract—
Bond—Definitions.
Alternative bid procedure.
Electrical facility construction or improvement—Bid proposals—Contract proposal forms—Conditions for issuance—
Appeals.
Minimum wages.
Application of RCW 54.04.070 through 54.04.090 to certain
service provider agreements under chapter 70.150 RCW.
Wholesale power—Procedure as to rate filing—Definition—
Duty to furnish to district.
Planning powers.
Employee benefit plans when private utility acquired—Rights,
powers and duties as to existing private employee benefit
plans.
Employee benefit plans when private utility acquired—
Admission to district's employee plan—Service credit—
Contributions—Benefits.
Employee benefit plans when private utility acquired—Agreements and contracts—Prior rights preserved.
Assumption of obligations of private pension plan when urban
transportation system acquired.
Collective bargaining authorized for employees.
Collective bargaining authorized for districts.
Lien for labor and materials on public works: Chapter 60.28 RCW.
Local governmental organizations, actions affecting boundaries, etc., review
by boundary review board: Chapter 36.93 RCW.
Traffic control at work sites: RCW 47.36.200.
Utility poles, unlawful to attach object to—Penalty: RCW 70.54.090.
54.04.010 Definitions. As used in this title "revenue
obligation" or "revenue obligations" mean and include bonds,
notes, warrants, certificates of indebtedness, or any other evidences of indebtedness issued by a district which, by the
terms thereof, shall be payable from the revenues of its public
utilities. [1959 c 218 § 14.]
54.04.010
"Wholesale power" defined: RCW 54.04.100.
54.04.020 Districts authorized. Municipal corporations, to be known as public utility districts, are hereby authorized for the purposes of chapter 1, Laws of 1931 and may be
established within the limits of the state of Washington, as
provided herein. [1931 c 1 § 2; RRS § 11606.]
54.04.020
Purpose—1931 c 1: "The purpose of this act is to authorize the establishment of public utility districts to conserve the water and power resources
of the State of Washington for the benefit of the people thereof, and to supply
public utility service, including water and electricity for all uses." [1931 c 1
§ 1.]
Severability—Construction—1931 c 1: "Adjudication of invalidity of
any section, clause or part of a section of this act shall not impair or otherwise affect the validity of the act as a whole or any other part thereof.
The rule of strict construction shall have no application to this act, but
the same shall be liberally construed, in order to carry out the purposes and
objects for which this act is intended.
When this act comes in conflict with any provision, limitation or
restriction in any other law, this act shall govern and control." [1931 c 1 §
11.]
54.04.030
54.04.030 Restrictions on invading other municipalities. Chapter 1, Laws of 1931, shall not be deemed or construed to repeal or affect any existing act, or any part thereof,
[Title 54 RCW—page 1]
54.04.035
Title 54 RCW: Public Utility Districts
relating to the construction, operation and maintenance of
public utilities by irrigation or water-sewer districts or other
municipal corporations, but shall be supplemental thereto and
concurrent therewith. No public utility district created hereunder shall include therein any municipal corporation, or any
part thereof, where such municipal corporation already owns
or operates all the utilities herein authorized: PROVIDED,
that in case it does not own or operate all such utilities it may
be included within such public utility district for the purpose
of establishing or operating therein such utilities as it does not
own or operate: PROVIDED, FURTHER, That no property
situated within any irrigation or water-sewer districts or other
municipal corporations shall ever be taxed or assessed to pay
for any utility, or part thereof, of like character to any utility,
owned or operated by such irrigation or water districts or
other municipal corporations. [1999 c 153 § 64; 1931 c 1 §
12; RRS § 11616.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Irrigation districts: Title 87 RCW.
Municipal utilities: RCW 80.04.500, 81.04.490 and chapter 35.92 RCW.
Water-sewer districts: Title 57 RCW.
54.04.035
54.04.035 Annexation of territory. In addition to other
powers authorized in Title 54 RCW, public utility districts
may annex territory as provided in this section.
The boundaries of a public utility district may be
enlarged and new contiguous territory added pursuant to the
procedures for annexation by cities and towns provided in
RCW 35.13.015 through 35.13.110. The provisions of these
sections concerning community municipal corporations,
review boards, and comprehensive plans, however, do not
apply to public utility district annexations. For purposes of
conforming with such procedures, the public utility district is
deemed to be the city or town and the board of commissioners is deemed to be the city or town legislative body.
Annexation procedures provided in this section may
only be used to annex territory that is both: (1) Contiguous to
the annexing public utility district; and (2) located within the
service area of the annexing public utility district. As used in
this section, a public utility district's "service area" means
those areas whether located within or outside of the annexing
public utility district's boundaries that were generally served
with electrical energy by the annexing public utility district
on January 1, 1987. Such service area may, or may not, have
been recognized in an agreement made under chapter 54.48
RCW, but no area may be included within such service area
that was generally served with electrical energy on January 1,
1987, by another public utility as defined in RCW 54.48.010.
An area proposed to be annexed may be located in the same
or a different county as the annexing public utility district.
If an area proposed to be annexed is located within the
boundaries of another public utility district, annexation may
be initiated only upon petition of registered voters residing in
the area in accordance with RCW 35.13.020 and adoption by
the boards of commissioners of both districts of identical resolutions stating (a) the boundaries of the area to be annexed,
(b) a determination that annexation is in the public interest of
the residents of the area to be annexed as well as the public
interest of their respective districts, (c) approval of annex[Title 54 RCW—page 2]
ation by the board, (d) the boundaries of the districts after
annexation, (e) the disposition of any assets of the districts in
the area to be annexed, (f) the obligations to be assumed by
the annexing district, (g) apportionment of election costs, and
(h) that voters in the area to be annexed will be advised of
lawsuits that may impose liability on the annexed territory
and the possible impact of annexation on taxes and utility
rates.
If annexation is approved, the area annexed shall cease to
be a part of the one public utility district at the same time that
it becomes a part of the other district. The annexing public
utility district shall assume responsibility for providing the
area annexed with the services provided by the other public
utility district in the area annexed. [1987 c 292 § 2; 1983 c
101 § 1.]
Consolidation and annexation: Chapter 54.32 RCW.
54.04.037
54.04.037 Annexation of territory—Coordination
among county officials. When territory has been added to a
public utility district in accordance with RCW 54.04.035, the
supervisor of elections and other officers of the county in
which the public utility district first operated shall coordinate
elections, the levy and collection of taxes, and other necessary duties with the appropriate county officials of the other
county. [1987 c 292 § 3.]
54.04.039
54.04.039 County with federal nuclear reservation
within its boundaries—Special procedure for addition or
withdrawal of territory from public utility district. (1)
Any voting precinct located within a county that has a federal
nuclear reservation within its boundaries is:
(a) Withdrawn from a public utility district if the precinct
receives at least one electric distribution, water, or sewer service from a city, and no electric distribution, water, or sewer
service from a public utility district;
(b) Included in a public utility district if any portion of
the precinct receives at least one electric distribution, water,
or sewer service from the public utility district.
(2) For voting precincts that meet the requirements of
subsection (1) of this section, within ten days after March 24,
2004, and for voting precincts that later meet the requirements of subsection (1) of this section, within thirty days of
meeting the requirements:
(a) The city that provides any electric distribution, water,
or sewer service to a precinct that is withdrawn from a public
utility district under subsection (1) of this section shall submit to the public utility district and the county auditor a list of
street addresses, or map of the areas to which any service is
provided;
(b) The public utility district that provides any electric
distribution, water, or sewer service to a precinct that is
included in the public utility district under subsection (1) of
this section shall submit to the city or town and the county
auditor a list of street addresses, or map of the areas to which
any service is provided.
(3) Within ten days of receipt of the information required
under subsection (2) of this section, the auditor shall determine which voting precincts are required to be withdrawn
from or included in the public utility district, and provide that
information to the public utility district commissioners who
(2004 Ed.)
General Provisions
shall, within ten days, revise the boundaries of the district in
conformance with RCW 54.12.010 without dividing any voting precinct.
(4) Unless otherwise provided in an agreement between
the public utility district and the city or town, taxes or assessments levied or assessed against property located in an area
withdrawn from a public utility district shall remain a lien
and be collected as by law (a) if the taxes or assessments were
levied or assessed before the withdrawal or (b) if the levies or
assessments were made to pay or secure an obligation of the
district duly incurred or issued before the withdrawal. The
withdrawal of an area from the boundaries of a district does
not exempt any property therein from taxation or assessment
for the purpose of paying the costs of retiring or redeeming
any obligation of the district duly incurred or issued before
the withdrawal.
(5) Except as set forth in subsection (4) of this section, a
public utility district may not levy or impose any taxes upon
property located within those voting precincts withdrawn
from the public utility district.
(6) Nothing in chapter 113, Laws of 2004 limits the
authority of public utility districts and cities or towns to enter
into service agreements that are otherwise permitted by law.
[2004 c 113 § 2.]
Effective date—2004 c 113: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[March 24, 2004]." [2004 c 113 § 3.]
54.04.040
54.04.040 Utilities within a city or town—Restrictions. A district shall not construct any property to be utilized by it in the operation of a plant or system for the generation, transmission, or distribution of electric energy for sale,
on the streets, alleys, or public places within a city or town
without the consent of the governing body of the city or town
and approval of the plan and location of the construction,
which shall be made under such reasonable terms as the city
or town may impose. All such properties shall be maintained
and operated subject to such regulations as the city or town
may prescribe under its police power. [1957 c 278 § 9. Prior:
(i) 1941 c 245 § 3a; Rem. Supp. 1941 § 11616-4. (ii) 1941 c
245 § 1, part; Rem. Supp. 1941 § 11616-1.]
54.04.045
54.04.045 Locally regulated utilities—Attachments
to poles. (1) As used in this section:
(a) "Attachment" means the affixation or installation of
any wire, cable or other physical material capable of carrying
electronic impulses or light waves for the carrying of intelligence for telecommunications or television, including, but
not limited to cable, and any related device, apparatus, or
auxiliary equipment upon any pole owned or controlled in
whole or in part by one or more locally regulated utilities
where the installation has been made with the necessary consent.
(b) "Locally regulated utility" means a public utility district not subject to rate or service regulation by the utilities
and transportation commission.
(c) "Nondiscriminatory" means that pole owners may not
arbitrarily differentiate among or between similar classes of
persons approved for attachments.
(2004 Ed.)
54.04.060
(2) All rates, terms, and conditions made, demanded or
received by a locally regulated utility for attachments to its
poles must be just, reasonable, nondiscriminatory and sufficient. A locally regulated utility shall levy attachment space
rental rates that are uniform for the same class of service
within the locally regulated utility service area.
(3) Nothing in this section shall be construed or is
intended to confer upon the utilities and transportation commission any authority to exercise jurisdiction over locally
regulated utilities. [1996 c 32 § 5.]
54.04.050
54.04.050 Group employee insurance—Annuities—
Retirement income policies. (1) Subject to chapter 48.62
RCW, any public utility district engaged in the operation of
electric or water utilities may enter into contracts of group
insurance for the benefit of its employees, and pay all or any
part of the premiums for such insurance. Such premiums
shall be paid out of the revenues derived from the operation
of such properties: PROVIDED, That if the premium is to be
paid by the district and employees jointly, and the benefits of
the policy are offered to all eligible employees, not less than
seventy-five percent of such employees may be so insured.
(2) A public utility district whose employees or officials
are not members of the state retirement system engaged in the
operation of electric or water utilities may contract for individual annuity contracts, retirement income policies or group
annuity contracts, including prior service, to provide a retirement plan, or any one or more of them, and pay all or any part
of the premiums therefor out of the revenue derived from the
operation of its properties. [1991 sp.s. c 30 § 23; 1984 c 15 §
1; 1959 c 233 § 1; 1941 c 245 § 8; Rem. Supp. 1941 §
11616-6.]
Effective date, implementation, application—Severability—1991
sp.s. c 30: See RCW 48.62.900 and 48.62.901.
Severability—1941 c 245: "If any section or provision of this act shall
be adjudged to be invalid, such adjudication shall not affect the validity of
the act as a whole or any section, provision or part thereof not adjudged to be
invalid." [1941 c 245 § 11.]
Group insurance: Chapters 48.21 and 48.24 RCW.
Hospitalization and medical insurance authorized: RCW 41.04.180.
54.04.055
54.04.055 Employee benefits—District may continue
to pay premiums after employee retires. Any public utility
district which provides for the coverage of any of its employees under any plan for individual annuity contracts, retirement income policies, group annuity contracts, group insurance for the benefit of its employees, or any other contract for
the benefit of its employees, and pays all or any part of the
premiums or other payments required therefor, is hereby
authorized to continue to make such payments for such
employees after their retirement from employment. Such
payments agreed to by the public utility district shall be considered as deferred compensation. Such payments shall not
be retroactive but shall only be available for those employees
employed on or after August 6, 1965 provided that such payments for retired employees shall not exceed those being paid
for regular employees. [1965 ex.s. c 149 § 1.]
54.04.060
54.04.060 District elections. The supervisor of elections or other proper officer of the county shall give notice of
all elections held under this title, for the time and in the man[Title 54 RCW—page 3]
54.04.070
Title 54 RCW: Public Utility Districts
ner and form provided for city, town, school district, and port
district elections. When the supervisor or other officer deems
an emergency exists, and is requested so to do by a resolution
of the district commission, he may call a special election at
any time in the district, and he may combine or divide precincts for the purpose of holding special elections, and special elections shall be conducted and notice thereof given in
the manner provided by law.
The supervisor or other officer shall provide polling
places, appoint the election officers, provide their compensation, provide ballot boxes, and ballots or voting machines,
poll books and tally sheets, and deliver them to the election
officers at the polling places, publish and post notices of the
elections in the manner provided by law, and apportion to the
district its share of the expense of the election.
The manner of conducting and voting at the elections,
opening and closing of polls, keeping of poll lists, canvassing
the votes, declaring the result, and certifying the returns, shall
be the same as for the election of state and county officers,
except as otherwise provided herein.
The district commission shall certify to the supervisor a
list of offices to be filled at a district election and the commission, if it desires to submit to the voters of the district a proposition, shall require the secretary of the commission to certify it at the time and in the manner and form provided for
certifying propositions by the governing board of cities,
towns, and port districts. [1951 c 207 § 1; 1941 c 245 § 5;
1931 c 1 § 5; RRS § 11609.]
54.04.070
54.04.070 Contracts for work or materials—
Notice—Exemptions. Any item, or items of the same kind
of materials, equipment, or supplies purchased, the estimated
cost of which is in excess of ten thousand dollars, exclusive
of sales tax shall be by contract: PROVIDED, That a district
may make purchases of the same kind of items of materials,
equipment and supplies not exceeding five thousand dollars
in any calendar month without a contract, purchasing any
excess thereof over five thousand dollars by contract. Any
work ordered by a district commission, the estimated cost of
which is in excess of ten thousand dollars exclusive of sales
tax, shall be by contract, except that a district commission
may have its own regularly employed personnel perform
work which is an accepted industry practice under prudent
utility management without a contract. Prudent utility management means performing work with regularly employed
personnel utilizing material of a worth not exceeding fifty
thousand dollars in value without a contract: PROVIDED,
That such limit on the value of material being utilized in work
being performed by regularly employed personnel shall not
include the value of individual items of equipment purchased
or acquired and used as one unit of a project. Before awarding
such a contract, the commission shall publish a notice once or
more in a newspaper of general circulation in the district at
least thirteen days before the last date upon which bids will
be received, inviting sealed proposals for the work or materials; plans and specifications of which shall at the time of the
publication be on file at the office of the district subject to
public inspection. Any published notice ordering work to be
performed for the district shall be mailed at the time of publication to any established trade association which files a written request with the district to receive such notices. The com[Title 54 RCW—page 4]
mission may at the same time and as part of the same notice,
invite tenders for the work or materials upon plans and specifications to be submitted by the bidders.
All contract projects equal to or in excess of one hundred
thousand dollars shall be let by competitive bidding unless
the public utility district lets contracts using the small works
roster process under RCW 39.04.155.
Whenever equipment or materials required by a district
are held by a governmental agency and are available for sale
but such agency is unwilling to submit a proposal, the commission may ascertain the price of such items and file a statement of such price supported by the sworn affidavit of one
member of the commission and may consider such price as a
bid without a deposit or bond.
The commission may waive the competitive bidding
requirements of this section pursuant to RCW 39.04.280 if an
exemption contained within that section applies to the purchase or public work. [2002 c 72 § 2; 2000 c 138 § 211; 1998
c 278 § 7; 1993 c 198 § 14; 1990 c 251 § 1; 1971 ex.s. c 220
§ 4; 1955 c 124 § 2. Prior: 1951 c 207 § 2; 1931 c 1 § 8, part;
RRS § 11612, part.]
Purpose—Part headings not law—2000 c 138: See notes following
RCW 39.04.155.
Contracts with state department of transportation: RCW 47.01.210.
Emergency public works: Chapter 39.28 RCW.
Prevailing wages on public works: Chapter 39.12 RCW.
Public purchase preferences: Chapter 39.24 RCW.
54.04.080
54.04.080 Bids—Deposit—Low bidder claiming
error—Contract—Bond—Definitions. Any notice inviting sealed bids shall state generally the work to be done, or
the material to be purchased and shall call for proposals for
furnishing it, to be sealed and filed with the commission on or
before the time named therein. Each bid shall be accompanied by a certified or cashier's check, payable to the order of
the commission, for a sum not less than five percent of the
amount of the bid, or accompanied by a bid bond in an
amount not less than five percent of the bid with a corporate
surety licensed to do business in the state, conditioned that
the bidder will pay the district as liquidated damages the
amount specified in the bond unless he or she enters into a
contract in accordance with his or her bid and furnishes the
performance bond within ten days from the date on which he
or she is notified that he or she is the successful bidder. A low
bidder who claims error and fails to enter into a contract is
prohibited from bidding on the same project if a second or
subsequent call for bids is made for the project.
At the time and place named, the bids shall be publicly
opened and read, and the commission shall canvass the bids,
and may let the contract to the lowest responsible bidder upon
the plans and specifications on file, or to the best bidder submitting his or her own plans or specifications; or if the contract to be let is to construct or improve electrical facilities,
the contract may be let to the lowest bidder prequalified
according to the provisions of RCW 54.04.085 upon the
plans and specifications on file, or to the best bidder submitting his or her own plans and specifications: PROVIDED,
That no contract shall be let for more than fifteen percent in
excess of the estimated cost of the materials or work. The
commission may reject all bids and readvertise, and in such
(2004 Ed.)
General Provisions
case all checks shall be returned to the bidders. The commission may procure materials in the open market, have its own
personnel perform the work or negotiate a contract for such
work to be performed by others, in lieu of readvertising, if it
receives no bid. If the contract is let, all checks shall be
returned to the bidders, except that of the successful bidder,
which shall be retained until a contract is entered into and a
bond to perform the work furnished, with sureties satisfactory
to the commission, in an amount to be fixed by the commission, not less than twenty-five percent of the contract price, in
accordance with the bid. If the bidder fails to enter into the
contract and furnish the bond within ten days from the date at
which he or she is notified that he or her [she] is the successful bidder, his or her check and the amount thereof shall be
forfeited to the district.
The commission shall, by resolution, define the term
"same kind of materials, equipment, and supplies" with
respect to purchase of items under the provisions of RCW
54.04.070.
The term "construction or improvement of any electrical
facility" as used in this section and in RCW 54.04.085, shall
mean the construction, the moving, maintenance, modification, or enlargement of facilities primarily used or to be used
for the transmission or distribution of electricity at voltages
above seven hundred fifty volts, including structures directly
supporting transmission or distribution conductors but not
including site preparation, housing, or protective fencing
associated with but not included in a contract for such construction, moving, modification, maintenance, or enlargement of such facilities.
The commission shall be the final authority with regard
to whether a bid is responsive to the call for bids and as to
whether a bidder is a responsible bidder under the conditions
of his or her bid. No award of contract shall be invalidated
solely because of the failure of any prospective bidder to
receive an invitation to bid. [1996 c 18 § 12; 1972 ex.s. c 41
§ 1; 1971 ex.s. c 220 § 3; 1955 c 124 § 3. Prior: 1951 c 207
§ 3; 1931 c 1 § 8, part; RRS § 11612, part.]
54.04.092
firm or corporation desiring to bid upon any electrical work
with a contract proposal form, require from such person, firm
or corporation, answers to questions contained in a standard
form of questionnaire and financial statement, including a
complete statement of the financial ability and experience of
such person, firm, or corporation in performing electrical
work. Such questionnaire shall be sworn to before a notary
public or other person authorized to take acknowledgment of
deeds, and shall be submitted once a year and at such other
times as the district commission may require. Whenever the
district commission is not satisfied with the sufficiency of the
answers contained in such questionnaire and financial statement or whenever the district commission determines that
such person, firm, or corporation does not meet all of the
requirements hereinafter set forth it may refuse to furnish
such person, firm or corporation with a contract proposal
form and any bid proposal of such person, firm or corporation
must be disregarded. In order to obtain a contract proposal
form, a person, firm or corporation shall have all of the following requirements:
(1) Adequate financial resources, or the ability to secure
such resources;
(2) The necessary experience, organization, and technical qualifications to perform the proposed contract;
(3) The ability to comply with the required performance
schedule taking into consideration all of its existing business
commitments;
(4) A satisfactory record of performance, integrity, judgment and skills; and
(5) Be otherwise qualified and eligible to receive an
award under applicable laws and regulations.
Such refusal shall be conclusive unless appeal therefrom
to the superior court of the county where the utility district is
situated or Thurston county be taken within fifteen days,
which appeal shall be heard summarily within ten days after
the same is taken and on five days' notice thereof to the district commission. [1971 ex.s. c 220 § 2.]
54.04.090
54.04.082
54.04.082 Alternative bid procedure. For the awarding of a contract to purchase any item, or items of the same
kind of materials, equipment, or supplies in an amount
exceeding ten thousand dollars, but less than fifty thousand
dollars, exclusive of sales tax, the commission may, in lieu of
the procedure described in RCW 54.04.070 and 54.04.080
requiring public notice to invite sealed proposals for such
materials, equipment, or supplies, pursuant to commission
resolution use the process provided in RCW 39.04.190.
Waiver of the deposit or bid bond required under RCW
54.04.080 may be authorized by the commission in securing
such bid quotations. [2002 c 72 § 1; 1995 c 354 § 1; 1993 c
198 § 15; 1977 ex.s. c 116 § 1.]
54.04.090 Minimum wages. Each contractor and subcontractor performing work for a public utility district or a
local utility district within a public utility district shall pay or
cause to be paid to its employees on the work or under the
contract or subcontract, not less than the minimum scale
fixed by the resolution of the commission prior to the notice
and call for bids on the work. The commission, in fixing the
minimum scale of wages, shall fix them as nearly as possible
to the current prevailing wages within the district for work of
like character. [1955 c 124 § 4. Prior: 1931 c 1 § 8, part; RRS
§ 11612, part.]
Prevailing wages on public works: Chapter 39.12 RCW.
54.04.092
54.04.085
54.04.085 Electrical facility construction or improvement—Bid proposals—Contract proposal forms—Conditions for issuance—Appeals. A district shall require that
bid proposals upon any construction or improvement of any
electrical facility shall be made upon contract proposal form
supplied by the district commission, and in no other manner.
The district commission shall, before furnishing any person,
(2004 Ed.)
54.04.092 Application of RCW 54.04.070 through
54.04.090 to certain service provider agreements under
chapter 70.150 RCW. RCW 54.04.070 through 54.04.090
shall not apply to agreements entered into under authority of
chapter 70.150 RCW provided there is compliance with the
procurement procedure under RCW 70.150.040. [1986 c 244
§ 14.]
Severability—1986 c 244: See RCW 70.150.905.
[Title 54 RCW—page 5]
54.04.100
Title 54 RCW: Public Utility Districts
54.04.100
54.04.100 Wholesale power—Procedure as to rate
filing—Definition—Duty to furnish to district. Whenever
a decree of public use and necessity heretofore has been or
hereafter shall be entered in condemnation proceedings conducted by a public utility district for the acquisition of electrical distribution properties, or whenever it has executed a contract for the purchase of such properties, the district may
cause to be filed with the utilities and transportation commission a copy of such contract or a certified copy of the decree,
together with a petition requesting that the commission cause
a rate to be filed with it for the sale of wholesale power to the
district. Thereupon the utilities and transportation commission shall order that a rate be filed with the commission forthwith for the sale of wholesale power to such district. The term
"wholesale power" means electric energy sold for purposes
of resale. The commission shall have authority to enter such
order as to any public service corporation which owns or
operates the electrical distribution properties being condemned or purchased or as to any such corporation which
owns or operates transmission facilities within a reasonable
distance of such distribution properties and which engages in
the business of selling wholesale power, pursuant to contract
or otherwise. The rate filed shall be for the period of service
specified by the district, or if the district does not specify a
particular period, such rate shall apply from the commencement of service until the district terminates same by thirty
days' written notice.
Upon reasonable notice, any such public service corporation shall furnish wholesale power to any public utility district owning or operating electrical distribution properties.
Whenever a public service corporation shall furnish wholesale power to a district and the charge or rate therefor is
reviewed by the commission, such reasonable rate as the
commission finally may fix shall apply as to power thereafter
furnished and as to that previously furnished under such
charge or rate from the time that the complaint concerning the
same shall have been filed by the commission or the district,
as the case may be. [1983 c 4 § 5; 1945 c 130 § 2; Rem. Supp.
1945 § 10459-12. Formerly RCW 54.04.010, 54.04.100, and
54.04.110.]
Purpose—1945 c 130: "The legislature has found that the public utility
districts of this state, including several which at the present moment are completing the acquisition of electrical properties and the sale of revenue bonds,
have immediate need for this act, in order to effectuate timely arrangements
for their wholesale power requirements, clarify their condemnation procedure, and plan their operations." [1945 c 130 § 1.]
Severability—1945 c 130: "If any section or provision of this act shall
be adjudged to be invalid, such adjudication shall not affect the validity of
the act as a whole or any section, provision or part thereof not adjudged to be
invalid." [1945 c 130 § 5.]
54.04.120
54.04.120 Planning powers. In order that the commissioners of a public utility district may be better able to plan
for the marketing of power and for the development of
resources pertaining thereto, they shall have the same powers
as are vested in a board of county commissioners as provided
in *chapter 44, Laws of 1935 (sections 9322-2 to 9322-4,
both inclusive, and 9322-10 to 9322-11 inclusive, Remington's Revised Statutes, also Pierce's Perpetual Code 776-3 to
-7, 776-19 and -21), entitled: "An Act relating to city, town,
county and regional planning and the creation, organization,
duties and powers of planning commissions." For the pur[Title 54 RCW—page 6]
poses of such act, the president of a public utility district shall
have the powers of the chairman of the board of county commissioners, and a planning commission created hereunder
shall have the same powers, enumerated in the above sections, with reference to a public utility district as a county
planning commission has with reference to a county. However, this section shall not be construed to grant the power to
adopt, regulate, or enforce comprehensive plans, zoning, land
use, or building codes. [1985 c 95 § 1; 1945 c 130 § 4; Rem.
Supp. 1945 § 10459-14.]
*Reviser's note: The portions of chapter 44, Laws of 1935 compiled as
RRS §§ 9322-2 to 9322-4 and 9322-10 to 9322-11 are codified in RCW
35.63.020 through 35.63.070.
Purpose—Severability—1945 c 130: See notes following RCW
54.04.100.
54.04.130
54.04.130 Employee benefit plans when private utility acquired—Rights, powers and duties as to existing
private employee benefit plans. Whenever any municipal
corporation acquires by condemnation or otherwise any utility which at the time of acquisition is in private ownership
and the employees of such private utility have been for at
least two years and are at the time of acquisition covered by
any plan for individual annuity contracts, retirement income
policies, group annuity contracts, group insurance for the
benefit of employees, or any other contract for the benefit of
employees, such district shall, when the personnel is retained
by the district, assume all of the obligations and liabilities of
the private utility acquired with relation to such plan and the
employees covered thereby at the time of acquisition; or the
municipal corporation may by agreement with a majority of
the employees affected substitute a plan or contract of the
same or like nature. The municipal corporations acquiring
such private utility shall proceed in such manner as is necessary so as not to reduce or impair any benefits or privileges
which such employees would have received or be entitled to
had such acquisition not been effected. The district may pay
all or any part of the premiums or other payments required
therefor out of the revenue derived from the operation of its
properties. [1961 c 139 § 1.]
54.04.140
54.04.140 Employee benefit plans when private utility acquired—Admission to district's employee plan—
Service credit—Contributions—Benefits. Any person
affected by RCW 54.04.130 who was employed by the private utility at the time of acquisition may, at his option, apply
to the district and/or appropriate officers, for admission to
any plan available to other employees of the district. Every
such person who was covered at the time of acquisition by a
plan with the private utility shall have added and accredited
to his period of employment his period of immediately preceding continuous service with such private utility if he
remains in the service of the municipal corporation until such
plan for which he seeks admission becomes applicable to
him.
No such person shall have added and accredited to his
period of employment his period of service with said private
utility unless he or a third party shall pay to the appropriate
officer or fund of the plan to which he requests admission his
contribution for the period of such service with the private
utility at the rate provided in or for such plan to which he
(2004 Ed.)
Formation—Dissolution—Elections
desires admission, or if he shall be entitled to any private benefits, as a result of such private service, unless he agrees at the
time of his employment with the district to accept a reduction
in the payment of any benefits payable under the plan to
which he requests entry that are based in whole or in part on
such added and accredited service by the amount of benefits
received. For the purposes of contributions, the date of entry
of service shall be deemed the date of entry into service with
the private utility, which service is accredited by this section,
and the amount of contributions for the period of accredited
service shall be based on the wages or salary of such person
during that added and accredited period of service with the
private utility.
The district may receive such payments from a third
party and shall make from such payments contributions with
respect to such prior service as may be necessary to enable it
to assume its obligations.
After such contributions have been made and such service added and accredited such employee shall be established
in the plan to which he seeks admission with all rights, benefits and privileges that he would have been entitled to had he
been a member of the plan from the beginning of his immediately preceding continuous employment with the private utility or of his eligibility. [1961 c 139 § 2.]
54.04.150
54.04.150 Employee benefit plans when private utility acquired—Agreements and contracts—Prior rights
preserved. The municipal corporation may enter into any
agreements and contracts necessary to carry out the powers
and duties prescribed by RCW 54.04.130 and 54.04.140, but
nothing in RCW 54.04.130 through 54.04.160 shall be so
construed as requiring without consent the modification of
the obligation of any contract or as requiring any third party
to modify the rights, privileges or obligations acquired or
incurred under a prior agreement. [1961 c 139 § 3.]
54.04.160
54.04.160 Assumption of obligations of private pension plan when urban transportation system acquired.
Any municipal corporation which has heretofore or shall
hereafter acquire from a private owner any urban transportation system which at the time of such acquisition has or had
in effect any pension or retirement system for its employees,
shall assume all such obligations with respect to continued
contributions to and/or administration of, such retirement
system, as the private owner bore or shall bear at such time,
insofar as shall be necessary to discharge accrued obligations
under such retirement system to beneficiaries who are not
thereafter made members of a municipal or state retirement
system. [1961 c 139 § 4.]
54.04.170
54.04.170 Collective bargaining authorized for
employees. Employees of public utility districts are hereby
authorized and entitled to enter into collective bargaining
relations with their employers with all the rights and privileges incident thereto as are accorded to similar employees in
private industry. [1963 c 28 § 1.]
54.04.180
54.04.180 Collective bargaining authorized for districts. Any public utility district may enter into collective
bargaining relations with its employees in the same manner
(2004 Ed.)
54.08.010
that a private employer might do and may agree to be bound
by the result of such collective bargaining. [1963 c 28 § 2.]
Chapter 54.08 RCW
FORMATION—DISSOLUTION—ELECTIONS
Chapter 54.08
Sections
54.08.001
54.08.010
54.08.041
54.08.050
54.08.060
54.08.070
54.08.080
Actions subject to review by boundary review board.
Districts including entire county or less—Procedure.
Formation election expenses.
Validity of district, questioning of.
Special election for formation of district and first commissioners—Terms.
Construction or acquisition of electric facilities for generation,
transmission, or distribution of power—When voter
approval required—Election.
Dissolution.
54.08.001
54.08.001 Actions subject to review by boundary
review board. Actions taken under chapter 54.08 RCW may
be subject to potential review by a boundary review board
under chapter 36.93 RCW. [1989 c 84 § 47.]
54.08.010
54.08.010 Districts including entire county or less—
Procedure. At any general election held in an even-numbered year, the county legislative authority of any county in
this state may, or, on petition of ten percent of the qualified
electors of the county based on the total vote cast in the last
general county election held in an even-numbered year, shall,
by resolution, submit to the voters of the county the proposition of creating a public utility district which shall be coextensive with the limits of the county as now or hereafter
established. A form of petition for the creation of a public
utility district shall be submitted to the county auditor within
ten months prior to the election at which the proposition is to
be submitted to the voters. Petitions shall be filed with the
county auditor not less than four months before the election
and the county auditor shall within thirty days examine the
signatures thereof and certify to the sufficiency or insufficiency thereof. If the petition be found to be insufficient, it
shall be returned to the persons filing the same, who may
amend or add names thereto for ten days, when the same shall
be returned to the county auditor, who shall have an additional fifteen days to examine the same and attach his certificate thereto. No person having signed the petition shall be
allowed to withdraw his name therefrom after the filing of the
same with the county auditor: PROVIDED, That each signature shall be dated and that no signature dated prior to the date
on which the form of petition was submitted to the county
auditor shall be valid. Whenever the petition shall be certified
to as sufficient, the county auditor shall forthwith transmit the
same, together with his certificate of sufficiency attached
thereto, to the county legislative authority which shall submit
the proposition to the voters of the county at the next general
election in an even-numbered year occurring forty-five days
after submission of the proposition to the legislative authority. The notice of the election shall state the boundaries of the
proposed public utility district and the object of such election,
and shall in other respects conform to the requirements of the
general laws of the state of Washington, governing the time
and manner of holding elections. In submitting the question
to the voters for their approval or rejection, the proposition
[Title 54 RCW—page 7]
54.08.041
Title 54 RCW: Public Utility Districts
shall be expressed on the ballot substantially in the following
terms:
Public Utility District No. . . . . . . . . . . . . . . . . YES '
Public Utility District No. . . . . . . . . . . . . . . . . . NO '
Any petition for the formation of a public utility district
may describe a less area than the entire county in which the
petition is filed, the boundaries of which shall follow the then
existing precinct boundaries and not divide any voting precinct; and in the event that such a petition is filed the county
legislative authority shall fix a date for a hearing on such petition, and shall publish the petition, without the signatures
thereto appended, for two weeks prior to the date of the hearing, together with a notice stating the time of the meeting
when the petition will be heard. The publication, and all other
publications required by chapter 1, Laws of 1931, shall be in
a newspaper of general circulation in the county in which the
district is situated. The hearing on the petition may be
adjourned from time to time, not exceeding four weeks in all.
If upon the final hearing the county legislative authority shall
find that any lands have been unjustly or improperly included
within the proposed public utility district and will not be benefited by inclusion therein, it shall change and fix the boundary lines in such manner as it shall deem reasonable and just
and conducive to the public welfare and convenience, and
make and enter an order establishing and defining the boundary lines of the proposed public utility district: PROVIDED,
That no lands shall be included within the boundaries so fixed
lying outside the boundaries described in the petition, except
upon the written request of the owners of those lands. Thereafter the same procedure shall be followed as prescribed in
this chapter for the formation of a public utility district
including an entire county, except that the petition and election shall be confined solely to the lesser public utility district.
No public utility district created after September 1, 1979,
shall include any other public utility district within its boundaries: PROVIDED, That this paragraph shall not alter,
amend, or modify provisions of chapter 54.32 RCW. [1985 c
469 § 55; 1979 ex.s. c 240 § 1; 1977 c 53 § 1; 1931 c 1 § 3;
RRS § 11607. Formerly RCW 54.08.010 and 54.08.020.]
Elections: Title 29A RCW.
54.08.041
54.08.041 Formation election expenses. All expenses
of elections for the formation of such public utility districts
shall be paid by the county holding such election, and such
expenditure is hereby declared to be for a county purpose,
and the money paid out for such purpose shall be repaid to
such county by the public utility district, if formed. [1969 c
106 § 2.]
Construction—1969 c 106: "The rule of strict construction shall have
no application to this act. The act shall be liberally construed, in order to
carry out the purposes and objectives for which this act is intended." [1969
c 106 § 8.]
Severability—1969 c 106: "If any provision of this act, or its application to any person or circumstance, is held invalid, the remainder of this act,
or the application to other persons or circumstances, is not affected." [1969
c 106 § 9.]
54.08.050
54.08.050 Validity of district, questioning of. The
existence of any public utility district now or hereafter
[Title 54 RCW—page 8]
formed under chapter 1, Laws of 1931, cannot hereafter be
legally questioned by any person except the state of Washington in an appropriate court action brought within six
months from the date that the county election board shall
have canvassed the returns of the election held on the proposition of creating such district. If the existence of a district is
not challenged within the period above specified, by the filing and service of petition or complaint in the action aforesaid, the state of Washington thereafter shall be barred forever from questioning the legal existence and validity of such
district by reason of any defect in the organization thereof,
and the same shall be deemed duly and regularly organized
under the laws of this state. [1941 c 245 § 10; Rem. Supp.
1941 § 11616-7.]
54.08.060
54.08.060 Special election for formation of district
and first commissioners—Terms. Whenever a proposition
for the formation of a public utility district is to be submitted
to voters in any county, the county legislative authority may
by resolution call a special election, and at the request of petitioners for the formation of such district contained in the petition shall do so and shall provide for holding the same at the
earliest practicable time. If the boundaries of the proposed
district embrace an area less than the entire county, such election shall be confined to the area so included. The notice of
such election shall state the boundaries of the proposed district and the object of such election; in other respects, such
election shall be held and called in the same manner as provided by law for the holding and calling of general elections:
PROVIDED, That notice thereof shall be given for not less
than ten days nor more than thirty days prior to such special
election. In submitting the proposition to the voters for their
approval or rejection, such proposition shall be expressed on
the ballots in substantially the following terms:
Public Utility District No. . . . . . . . . . . . . . . . . . . . YES
Public Utility District No. . . . . . . . . . . . . . . . . . . . . NO
At the same special election on the proposition to form a
public utility district, there shall also be an election for three
public utility district commissioners. However, the election
of such commissioners shall be null and void if the proposition to form the public utility district does not receive
approval by a majority of the voters voting on the proposition. No primary shall be held. A special filing period shall be
opened as provided in *RCW 29.15.170 and 29.15.180. The
person receiving the greatest number of votes for the commissioner of each commissioner district shall be elected as
the commissioner of that district. Commissioner districts
shall be established as provided in RCW 54.12.010. The
terms of the initial commissioners shall be staggered as follows: (1) The person who is elected receiving the greatest
number of votes shall be elected to a six-year term of office if
the election is held in an even-numbered year or a five-year
term if the election is held in an odd-numbered year; (2) the
person who is elected receiving the next greatest number of
votes shall be elected to a four-year term of office if the election is held in an even-numbered year or a three-year term of
office if the election is held in an odd-numbered year; and (3)
the other person who is elected shall be elected to a two-year
term of office if the election is held in an even-numbered year
(2004 Ed.)
Commissioners
or a one-year term of office if the election is held in an oddnumbered year. The commissioners first to be elected at such
special election shall assume office immediately when they
are elected and qualified, but the length of their terms of
office shall be calculated from the first day in January in the
year following their elections.
The term "general election" as used herein means biennial general elections at which state and county officers in a
noncharter county are elected. [1994 c 223 § 55; 1979 ex.s. c
126 § 36; 1951 c 207 § 5.]
*Reviser's note: RCW 29.15.170 and 29.15.180 were recodified as
RCW 29A.24.170 and 29A.24.180, respectively, pursuant to 2003 c 111 §
2401, effective July 1, 2004. RCW 29A.24.170 and 29A.24.180 were subsequently repealed by 2004 c 271 § 193.
forty-five days after submission of the proposition to said
legislative authority. The notice of the election shall state the
object of such election, and shall in other respects conform to
the requirements of the general laws of Washington, governing the time and manner of holding elections.
The proposal submitted to the voters for their approval or
rejection, shall be expressed on the ballot substantially in the
following terms:
Shall Public Utility District No. . . . . of . . . . . . County
construct or acquire electric facilities for the generation,
transmission or distribution of electric power?
Yes
No
Purpose—1979 ex.s. c 126: See RCW 29A.20.040(1).
Elections: Title 29A RCW.
54.08.070
54.08.070 Construction or acquisition of electric
facilities for generation, transmission, or distribution of
power—When voter approval required—Election. Any
district which does not own or operate electric facilities for
the generation, transmission or distribution of electric power
on March 25, 1969, or any district which hereafter does not
construct or acquire such electric facilities within ten years of
its creation, shall not construct or acquire any such electric
facilities without the approval of such proposal by the voters
of such district: PROVIDED, That a district shall have the
power to construct or acquire electric facilities within ten
years following its creation by action of its commission without voter approval of such action.
At any general election held in an even-numbered year,
the proposal to construct or acquire electric facilities may be
submitted to the voters of the district by resolution of the public utility district commission or shall be submitted to the voters of the district by the county legislative authority on petition of ten percent of the qualified electors of such district,
based on the total vote cast in the last general county election
held in an even-numbered year. A form of petition for the
construction or acquisition of electric facilities by the public
utility district shall be submitted to the county auditor within
ten months prior to the election at which such proposition is
to be submitted to the voters. Petitions shall be filed with the
county auditor not less than four months before such election
and the county auditor shall within thirty days examine the
signatures thereof and certify to the sufficiency or insufficiency thereof. If such petition is found to be insufficient, it
shall be returned to the persons filing the same, who may
amend and add names thereto for ten days, when the same
shall be returned to the county auditor, who shall have an
additional fifteen days to examine the same and attach his
certificate thereto. No person having signed such petition
shall be allowed to withdraw his name therefrom after the filing of the same with the county auditor: PROVIDED, That
each signature shall be dated and that no signature dated prior
to the date on which the form of petition was submitted to the
county auditor shall be valid. Whenever such petition shall be
certified to as sufficient, the county auditor shall forthwith
transmit the same, together with his certificate of sufficiency
attached thereto, to the county legislative authority which
shall submit such proposition to the voters of said district at
the next general election in an even-numbered year occurring
(2004 Ed.)
Chapter 54.12
'
'
Within ten days after such election, the election board of
the county shall canvass the returns, and if at such election a
majority of the voters voting on such proposition shall vote in
favor of such construction or acquisition of electric facilities,
the district shall be authorized to construct or acquire electric
facilities. [1979 ex.s. c 240 § 2; 1969 c 106 § 3.]
Construction—Severability—1969 c 106: See notes following RCW
54.08.041.
54.08.080
54.08.080 Dissolution. Any district now or hereafter
created under the laws of this state may be dissolved, as hereinafter provided, by a majority vote of the qualified electors
of such district at any general election upon a resolution of
the district commission, or upon petition being filed and such
proposition for dissolution submitted to said electors in the
same manner provided by chapter 54.08 RCW for the creation of public utility districts. The returns of the election on
such proposition for dissolution shall be canvassed and the
results declared in the same manner as is provided by RCW
54.08.010: PROVIDED, HOWEVER, That any such proposition to dissolve a district shall not be submitted to the electors if within five years prior to the filing of such petition or
resolution such district has undertaken any material studies or
material action relating to the construction or acquisition of
any utility properties or if such district at the time of the submission of such proposition is actually engaged in the operation of any utility properties.
If a majority of the votes cast at the election favor dissolution, the commission of the district shall petition, without
any filing fee, the superior court of the county in which such
district is located for an order authorizing the payment of all
indebtedness of the district and directing the transfer of any
surplus funds or property to the general fund of the county in
which such district is organized. [1969 c 106 § 4.]
Construction—Severability—1969 c 106: See notes following RCW
54.08.041.
Dissolution of special purpose districts: Chapters 36.96 and 53.48 RCW.
Chapter 54.12
Chapter 54.12 RCW
COMMISSIONERS
Sections
54.12.010
54.12.080
54.12.090
54.12.100
Exercise of power by commissioners—Number—Districts—
Terms—Vacancies—Adjustment of boundaries.
Compensation and expenses—Group insurance.
President—Secretary—Rules—Seal—Minutes.
Oath or affirmation.
[Title 54 RCW—page 9]
54.12.010
54.12.110
Title 54 RCW: Public Utility Districts
Electrical utilities—Civil immunity of commissioners and
employees for good faith mistakes and errors of judgment.
Redistricting by local governments and municipal corporations—Census
information for—Plan, prepared when, criteria for, hearing on,
request for review of, certification, remand—Sanctions when review
request frivolous: RCW 29A.76.010.
54.12.010
54.12.010 Exercise of power by commissioners—
Number—Districts—Terms—Vacancies—Adjustment of
boundaries. A public utility district that is created as provided in RCW 54.08.010 shall be a municipal corporation of
the state of Washington, and the name of such public utility
district shall be Public Utility District No. . . . . of . . . . . .
County.
The powers of the public utility district shall be exercised through a commission consisting of three members in
three commissioner districts, and five members in five commissioner districts.
(1) If the public utility district is county-wide and the
county has three county legislative authority districts, then, at
the first election of commissioners and until any change is
made in the boundaries of public utility district commissioner
districts, one public utility district commissioner shall be
chosen from each of the three county legislative authority
districts.
(2) If the public utility district comprises only a portion
of the county, with boundaries established in accordance with
chapter 54.08 RCW, or if the public utility district is countywide and the county does not have three county legislative
authority districts, three public utility district commissioner
districts, numbered consecutively, each with approximately
equal population and following precinct lines, as far as practicable, shall be described in the petition for the formation of
the public utility district, subject to appropriate change by the
county legislative authority if and when it changes the boundaries of the proposed public utility district. One commissioner shall be elected as a commissioner of each of the public utility district commissioner districts.
(3) Only a registered voter who resides in a commissioner district may be a candidate for, or hold office as, a
commissioner of the commissioner district. Only voters of a
commissioner district may vote at a primary to nominate candidates for a commissioner of the commissioner district.
Voters of the entire public utility district may vote at a general election to elect a person as a commissioner of the commissioner district.
(4) The term of office of each public utility district commissioner other than the commissioners at large shall be six
years, and the term of each commissioner at large shall be
four years. Each term shall be computed in accordance with
RCW 29A.20.040 following the commissioner's election.
All public utility district commissioners shall hold office
until their successors shall have been elected and have qualified and assume office in accordance with RCW 29A.20.040.
(5) A vacancy in the office of public utility district commissioner shall occur as provided in chapter 42.12 RCW or
by nonattendance at meetings of the public utility district
commission for a period of sixty days unless excused by the
public utility district commission. Vacancies on a board of
public utility district commissioners shall be filled as provided in chapter 42.12 RCW.
[Title 54 RCW—page 10]
(6) The boundaries of the public utility district commissioner districts may be changed only by the public utility district commission, and shall be examined every ten years to
determine substantial equality of population in accordance
with chapter 29A.76 RCW. Except as provided in this section or RCW 54.04.039, the boundaries shall not be changed
oftener than once in four years. Boundaries may only be
changed when all members of the commission are present.
Whenever territory is added to a public utility district under
RCW 54.04.035, or added or withdrawn under RCW
54.04.039, the boundaries of the public utility commissioner
districts shall be changed to include the additional or exclude
the withdrawn territory. Unless the boundaries are changed
pursuant to RCW 54.04.039, the proposed change of the
boundaries of the public utility district commissioner district
must be made by resolution and after public hearing. Notice
of the time of the public hearing shall be published for two
weeks before the hearing. Upon a referendum petition signed
by ten percent of the qualified voters of the public utility district being filed with the county auditor, the county legislative
authority shall submit the proposed change of boundaries to
the voters of the public utility district for their approval or
rejection. The petition must be filed within ninety days after
the adoption of resolution of the proposed action. The validity of the petition is governed by the provisions of chapter
54.08 RCW. [2004 c 113 § 1; 1994 c 223 § 56; 1990 c 59 §
109; 1987 c 292 § 1; 1979 ex.s. c 126 § 37; 1977 ex.s. c 36 §
8; 1977 c 53 § 2; 1969 c 106 § 1; 1959 c 265 § 9; 1941 c 245
§ 4; 1931 c 1 § 4; Rem. Supp. 1941 § 11608. Formerly RCW
54.08.030, 54.08.040, 54.12.010 through 54.12.070.]
Effective date—2004 c 113: See note following RCW 54.04.039.
Intent—Effective date—1990 c 59: See notes following RCW
29A.04.013.
Purpose—1979 ex.s. c 126: See RCW 29A.20.040(1).
Construction—Severability—1969 c 106: See notes following RCW
54.08.041.
54.12.080
54.12.080 Compensation and expenses—Group
insurance. (1) Commissioners of public utility districts are
eligible to receive salaries as follows:
(a) Each public utility district commissioner of a district
operating utility properties shall receive a salary of one thousand dollars per month during a calendar year if the district
received total gross revenue of over fifteen million dollars
during the fiscal year ending June 30th before the calendar
year. However, the board of commissioners of such a public
utility district may pass a resolution increasing the rate of salary up to thirteen hundred dollars per month.
(b) Each public utility district commissioner of a district
operating utility properties shall receive a salary of seven
hundred dollars per month during a calendar year if the district received total gross revenue of from two million dollars
to fifteen million dollars during the fiscal year ending June
30th before the calendar year. However, the board of commissioners of such a public utility district may pass a resolution increasing the rate of salary up to nine hundred dollars
per month.
(c) Commissioners of other districts shall serve without
salary. However, the board of commissioners of such a public
utility district may pass a resolution providing for salaries not
(2004 Ed.)
Powers
exceeding four hundred dollars per month for each commissioner.
(2) In addition to salary, all districts may provide by resolution for the payment of per diem compensation to each
commissioner at a rate not exceeding seventy dollars for each
day or major part thereof devoted to the business of the district, and days upon which he or she attends meetings of the
commission of his or her district or meetings attended by one
or more commissioners of two or more districts called to consider business common to them, but such compensation paid
during any one year to a commissioner shall not exceed nine
thousand eight hundred dollars. Per diem compensation shall
not be paid for services of a ministerial or professional
nature.
(3) Any commissioner may waive all or any portion of
his or her compensation payable under this section as to any
month or months during his or her term of office, by a written
waiver filed with the district as provided in this section. The
waiver, to be effective, must be filed any time after the commissioner's election and prior to the date on which the compensation would otherwise be paid. The waiver shall specify
the month or period of months for which it is made.
(4) Each district commissioner shall be reimbursed for
reasonable expenses actually incurred in connection with
such business and meetings, including his or her subsistence
and lodging and travel while away from his or her place of
residence.
(5) Any district providing group insurance for its
employees, covering them, their immediate family, and
dependents, may provide insurance for its commissioner with
the same coverage. [1998 c 121 § 4; 1997 c 28 § 1; 1985 c
330 § 4; 1977 ex.s. c 157 § 1; 1969 c 106 § 5; 1967 c 161 § 1;
1957 c 140 § 2; 1955 c 124 § 5; 1951 c 207 § 4. Prior: (i)
1931 c 1 § 8, part; RRS § 11612, part. (ii) 1941 c 245 § 6;
Rem. Supp. 1941 § 11616-5.]
Construction—Severability—1969 c 106: See notes following RCW
54.08.041.
Group employee insurance: RCW 54.04.050.
Hospitalization and medical insurance not deemed additional compensation: RCW 41.04.190.
54.12.090 President—Secretary—Rules—Seal—
Minutes. The commission shall elect from its members, a
president and secretary, and shall, by resolution, adopt rules
governing the transaction of district business, and adopt an
official seal. All proceedings of the commission shall be by
motion or resolution, recorded in its minute books, which
shall be public records.
A majority of the members shall constitute a quorum of
the commission for the transaction of business. The concurrence of a majority of the whole commission in office at the
time shall be necessary for the passage of any resolution, and
no business shall be transacted, except in usual and ordinary
course, unless there are in office at least a majority of the full
number of commissioners as fixed by law.
The commission may create and fill such positions and
fix salaries and bonds thereof as it may provide by resolution.
[1955 c 124 § 6. Prior: 1931 c 1 § 8, part; RRS § 11612, part.]
54.12.090
Chapter 54.16
subscribe an oath or affirmation that he will faithfully and
impartially discharge the duties of his office to the best of his
ability. This oath, or affirmation, shall be administered and
certified by an officer of the county in which the district is situated, who is authorized to administer oaths, without charge
therefor. The oath or affirmation shall be filed with the
county auditor. [1986 c 167 § 23; 1959 c 265 § 10.]
Severability—1986 c 167: See note following RCW 29A.04.049.
54.12.110
54.12.110 Electrical utilities—Civil immunity of
commissioners and employees for good faith mistakes and
errors of judgment. Commissioners and employees of public utility districts shall be immune from civil liability for
mistakes and errors of judgment in the good faith performance of acts within the scope of their official duties involving the exercise of judgment and discretion which relate
solely to their responsibilities for electrical utilities. This
grant of immunity shall not be construed as modifying the liability of the public utility district. [1983 1st ex.s. c 48 § 2.]
Severability—1983 1st ex.s. c 48: See note following RCW 35.21.415.
Chapter 54.16
Sections
54.16.005
54.16.010
54.16.020
54.16.030
54.16.032
54.16.035
54.16.040
54.16.045
54.16.047
54.16.050
54.16.060
54.16.070
54.16.080
54.16.083
54.16.085
54.16.090
54.16.092
54.16.095
54.16.096
54.16.097
54.16.100
54.16.110
54.16.120
54.16.125
54.16.130
54.16.140
54.16.142
54.16.145
54.16.150
54.16.160
54.16.165
54.16.170
54.16.180
54.12.100
54.12.100 Oath or affirmation. Each commissioner
before he enters upon the duties of his office shall take and
(2004 Ed.)
Chapter 54.16 RCW
POWERS
54.16.190
54.16.200
Definitions.
Surveys, plans, investigations, or studies.
Acquisition of property and rights—Eminent domain.
Water and irrigation works.
Authority to assist customers in the acquisition of water conservation equipment—Limitations.
Provision of water service beyond district subject to review by
boundary review board.
Electric energy.
Nonpolluting power generation by individual—Exemption
from regulation—Authorization to contract with utility.
Hydroelectric resources—Separate legal authority—Creation
by irrigation districts and cities, towns, or public utility districts.
Water rights.
Intertie lines.
District may borrow money, contract indebtedness, issue
bonds or obligations—Guaranty fund.
Levy and collection of taxes—Tax anticipation warrants.
Community revitalization financing—Public improvements.
Interfund loans.
Contracts with other agencies or utilities—Gifts, etc.—
Employees and experts—Advancements.
Employment interview expenses.
Liability insurance for officials and employees.
Liability insurance for officers and employees authorized.
Actions against officer, employee, or agent—Defense and
costs provided by public utility district—Exception.
Manager—Appointment—Compensation—Duties.
May sue and be sued—Claims.
Local utility districts authorized.
Exemption of farm and agricultural land from special benefit
assessments.
Local districts—Procedure—Financing.
Petition or resolution for local district—Hearing—Notice.
Local utility districts—Notice must contain statement that
assessments may vary from estimates.
Local utility districts—Sanitary sewer or potable water facilities—Notice to certain property owners.
Procedure when petition is signed by majority of landowners.
Assessment roll—Hearing—Appellate review—Expenses.
Segregation of assessments.
Apportionment of cost of improvement.
Sale, lease, disposition of properties, equipment, and materials—Procedure—Acquisition, operation of sewage system
by districts in certain counties.
General resolutions.
Joint exercise of powers and joint acquisition of properties.
[Title 54 RCW—page 11]
54.16.005
54.16.210
54.16.220
54.16.230
54.16.240
54.16.250
54.16.260
54.16.270
54.16.280
54.16.285
54.16.300
54.16.310
54.16.320
54.16.330
54.16.340
54.16.350
54.16.360
54.16.370
Title 54 RCW: Public Utility Districts
Joint acquisition, operation, etc., with city of electrical utility
properties.
Columbia river hydroelectric projects—Grant back of easements to former owners.
Sewage system works—Acquire, construct, operate, etc.—
Authorizing election—Procedure.
Sewage system works—Resolution or petition—Voter
approval or rejection.
Sewage system works—Ballot proposition—Canvass.
Sewage system works—Accounts and funding.
Sewage system works—Existing authority not affected.
Energy conservation plan—Financing authorized for energy
conservation projects in structures or equipment—Limitations.
Limitations on termination of utility service for residential
heating.
Combined utility functions.
Operation, maintenance, and inspection of sewage disposal
facilities, septic tanks, and wastewater disposal facilities and
systems—Maintenance costs.
Assumption of substandard water system—Limited immunity
from liability.
Telecommunications facilities—Purposes—Limitations—
Provision of wholesale telecommunications services—Eminent domain.
Wholesale telecommunications services—Petition for review
of rates, terms, conditions.
Tariff for irrigation pumping service—Authority to buy back
electricity.
Cooperative watershed management.
Purchase of electric power and energy from joint operating
agency.
Deferral of special assessments: Chapter 84.38 RCW.
Special benefit assessments—Property taxes—Exemptions: RCW 84.34.300
through 84.34.380.
54.16.005
54.16.005 Definitions. The definitions in this section
apply throughout this chapter unless the context clearly
requires otherwise.
(1) "Commission" means the Washington utilities and
transportation commission.
(2) "Telecommunications" has the same meaning as that
contained in RCW 80.04.010.
(3) "Telecommunications facilities" means lines, conduits, ducts, poles, wires, cables, crossarms, receivers, transmitters, instruments, machines, appliances, instrumentalities
and all devices, real estate, easements, apparatus, property,
and routes used, operated, owned, or controlled by any entity
to facilitate the provision of telecommunications services.
(4) "Wholesale telecommunications services" means the
provision of telecommunications services or facilities for
resale by an entity authorized to provide telecommunications
services to the general public and internet service providers.
[2000 c 81 § 2.]
Findings—2000 c 81: See note following RCW 53.08.005.
54.16.010
54.16.010 Surveys, plans, investigations, or studies.
A district may make surveys, plans, investigations or studies
for generating electric energy by water power, steam, or other
methods, and for systems and facilities for the generation,
transmission or distribution thereof, and for domestic and
industrial water supply and irrigation, and for matters and
purposes reasonably incidental thereto, within or without the
district, and compile comprehensive maps and plans showing
the territory that can be most economically served by the various resources and utilities, the natural order in which they
should be developed, and how they may be joined and coordinated to make a complete and systematic whole. [1969 c
[Title 54 RCW—page 12]
106 § 6; 1955 c 390 § 2. Prior: 1945 c 143 § 1(a); 1931 c 1 §
6(a); Rem. Supp. 1945 § 11610(a).]
Construction—Severability—1969 c 106: See notes following RCW
54.08.041.
54.16.020
54.16.020 Acquisition of property and rights—Eminent domain. A district may construct, condemn and purchase, purchase, acquire, lease, add to, maintain, operate,
develop, and regulate all lands, property, property rights,
water, water rights, dams, ditches, flumes, aqueducts, pipes
and pipe lines, water power, leases, easements, rights of way,
franchises, plants, plant facilities, and systems for generating
electric energy by water power, steam, or other methods;
plants, plant facilities, and systems for developing, conserving, and distributing water for domestic use and irrigation;
buildings, structures, poles and pole lines, and cables and
conduits and any and all other facilities; and may exercise the
right of eminent domain to effectuate the foregoing purposes
or for the acquisition and damaging of such property and
rights, or property of any kind appurtenant thereto, and for
the purpose of acquiring the right to make physical connection with plants and plant facilities of all persons and municipalities. The right of eminent domain shall be exercised pursuant to resolution of the commission and conducted in the
same manner and by the same procedure as is provided for
the exercise of that power by cities and towns of the state in
the acquisition of like property and property rights. It shall be
no defense to a condemnation proceeding that a portion of the
electric current generated or sold by the district will be
applied to private purposes, if the principal uses intended are
public: PROVIDED, That no public utility owned by a city
or town shall be condemned, and none shall be purchased
without submission of the question to the voters of the utility
district. In a condemnation proceeding, the court shall submit
to the jury the values placed upon the property by the taxing
authority for taxation purposes, and in respect to property,
plants, and facilities of persons using public highways for
furnishing public service without franchises, shall consider in
determining the value thereof the fact that the property,
plants, and facilities are subject to be removed from the highways by reason of being so operated without a franchise.
[1955 c 390 § 3. Prior: 1945 c 143 § 1(b); 1931 c 1 § 6(b);
Rem. Supp. 1945 § 11610(b).]
Eminent domain: State Constitution Art. 1 § 16 (Amendment 9).
Eminent domain by cities: Chapter 8.12 RCW.
54.16.030
54.16.030 Water and irrigation works. A district may
construct, purchase, condemn and purchase, acquire, add to,
maintain, conduct, and operate water works and irrigation
plants and systems, within or without its limits, for the purpose of furnishing the district, and the inhabitants thereof,
and of the county in which the district is located, and any
other persons including public and private corporations
within or without the limits of the district or the county, with
an ample supply of water for all purposes, public and private,
including water power, domestic use, and irrigation, with full
and exclusive authority to sell and regulate and control the
use, distribution, and price thereof. [1999 c 154 § 1; 1998 c
49 § 1; 1955 c 390 § 4. Prior: 1945 c 143 § 1(c); 1931 c 1 §
6(c); Rem. Supp. 1945 § 11610(c).]
(2004 Ed.)
Powers
54.16.032
54.16.032 Authority to assist customers in the acquisition of water conservation equipment—Limitations.
Any district is hereby authorized, within limits established by
the Constitution of the state of Washington, to assist the owners of structures in financing the acquisition and installation
of fixtures, systems, and equipment, for compensation or otherwise, for the conservation or more efficient use of water in
the structures under a water conservation plan adopted by the
district if the cost per unit of water saved or conserved by the
use of the fixtures, systems, and equipment is less than the
cost per unit of water supplied by the next least costly new
water source available to the district to meet future demand.
Except where otherwise authorized, assistance shall be limited to:
(1) Providing an inspection of the structure, either
directly or through one or more inspectors under contract, to
determine and inform the owner of the estimated cost of purchasing and installing conservation fixtures, systems, and
equipment for which financial assistance will be approved
and the estimated life cycle savings to the water system and
the consumer that are likely to result from the installation of
the fixtures, systems, or equipment;
(2) Providing a list of businesses that sell and install the
fixtures, systems, and equipment within or in close proximity
to the service area of the city or town, each of which businesses shall have requested to be included and shall have the
ability to provide the products in a workmanlike manner and
to utilize the fixtures, systems, and equipment in accordance
with the prevailing national standards;
(3) Arranging to have approved conservation fixtures,
systems, and equipment installed by a private contractor
whose bid is acceptable to the owner of the structure and verifying the installation; and
(4) Arranging or providing financing for the purchase
and installation of approved conservation fixtures, systems,
and equipment. The fixtures, systems, and equipment shall be
purchased or installed by a private business, the owner, or the
utility.
Pay back shall be in the form of incremental additions to
the utility bill, billed either together with use charge or separately. Loans shall not exceed one hundred twenty months in
length. [1989 c 421 § 4.]
Intent—Contingent effective date—1989 c 421: See notes following
RCW 35.92.017.
54.16.035
54.16.035 Provision of water service beyond district
subject to review by boundary review board. The provision of water service beyond the boundaries of a public utility
district may be subject to potential review by a boundary
review board under chapter 36.93 RCW. [1989 c 84 § 48.]
54.16.040
54.16.040 Electric energy. A district may purchase,
within or without its limits, electric current for sale and distribution within or without its limits, and construct, condemn
and purchase, purchase, acquire, add to, maintain, conduct,
and operate works, plants, transmission and distribution lines
and facilities for generating electric current, operated either
by water power, steam, or other methods, within or without
its limits, for the purpose of furnishing the district, and the
inhabitants thereof and any other persons, including public
and private corporations, within or without its limits, with
(2004 Ed.)
54.16.050
electric current for all uses, with full and exclusive authority
to sell and regulate and control the use, distribution, rates,
service, charges, and price thereof, free from the jurisdiction
and control of the utilities and transportation commission, in
all things, together with the right to purchase, handle, sell, or
lease motors, lamps, transformers and all other kinds of
equipment and accessories necessary and convenient for the
use, distribution, and sale thereof: PROVIDED, That the
commission shall not supply water to a privately owned utility for the production of electric energy, but may supply,
directly or indirectly, to an instrumentality of the United
States government or any publicly or privately owned public
utilities which sell electric energy or water to the public, any
amount of electric energy or water under its control, and contracts therefor shall extend over such period of years and contain such terms and conditions for the sale thereof as the commission of the district shall elect; such contract shall only be
made pursuant to a resolution of the commission authorizing
such contract, which resolution shall be introduced at a meeting of the commission at least ten days prior to the date of the
adoption of the resolution: PROVIDED FURTHER, That it
shall first make adequate provision for the needs of the district, both actual and prospective. [1955 c 390 § 5. Prior:
1945 c 143 § 1(d); 1931 c 1 § 6(d); Rem. Supp. 1945 §
11610(d).]
Joint operating agency: RCW 43.52.360.
Reduced utility rates for low-income senior citizens and other low-income
citizens: RCW 74.38.070.
Right of city or town to acquire electrical distribution property from P.U.D.:
RCW 35.92.054.
54.16.045 Nonpolluting power generation by individual—Exemption from regulation—Authorization to contract with utility. See chapter 80.58 RCW.
54.16.045
54.16.047 Hydroelectric resources—Separate legal
authority—Creation by irrigation districts and cities,
towns, or public utility districts. See RCW 87.03.825
through 87.03.840.
54.16.047
54.16.050 Water rights. A district may take, condemn
and purchase, purchase and acquire any public and private
property, franchises and property rights, including state,
county, and school lands, and property and littoral and water
rights, for any of the purposes aforesaid, and for railroads,
tunnels, pipe lines, aqueducts, transmission lines, and all
other facilities necessary or convenient, and, in connection
with the construction, maintenance, or operation of any such
utilities, may acquire by purchase or condemnation and purchase the right to divert, take, retain, and impound and use
water from or in any lake or watercourse, public or private,
navigable or nonnavigable, or held, owned, or used by the
state, or any subdivision thereof, or by any person for any
public or private use, or any underflowing water within the
state; and the district may erect, within or without its limits,
dams or other works across any river or watercourse, or
across or at the outlet of any lake, up to and above high water
mark; and, for the purpose of constructing or laying aqueducts or pipelines, dams, or waterworks or other necessary
structures in storing, retaining, and distributing water, or for
any other purpose authorized hereunder, the district may
54.16.050
[Title 54 RCW—page 13]
54.16.060
Title 54 RCW: Public Utility Districts
occupy and use the beds and shores up to the high water mark
of any such lake, river, or watercourse, and acquire by purchase or by condemnation and purchase, or otherwise, any
water, water rights, easements, or privileges named herein or
necessary for any of such purposes, and a district may acquire
by purchase, or condemnation and purchase, or otherwise,
any lands, property, or privileges necessary to protect the
water supply of the district from pollution: PROVIDED,
That should private property be necessary for any of its purposes, or for storing water above high water mark, the district
may condemn and purchase, or purchase and acquire such
private property. [1955 c 390 § 6. Prior: 1945 c 143 § 1(e),
part; 1931 c 1 § 6(e), part; Rem. Supp. 1945 § 11610(e), part.]
Water rights: Title 90 RCW.
54.16.060
54.16.060 Intertie lines. A district may build and maintain intertie lines connecting its power plant and distribution
system with the power plant and distribution system owned
by any other public utility district, or municipal corporation,
or connect with the power plants and distribution systems
owned by any municipal corporation in the district, and from
any such intertie line, sell electric energy to any person, public utility district, city, town or other corporation, public or
private, and, by means of transmission or pole lines, conduct
electric energy from the place of production to the point of
distribution, and construct and lay aqueducts, pipe or pole
lines, and transmission lines along and upon public highways, roads, and streets, and condemn and purchase, purchase or acquire, lands, franchises, and rights of way necessary therefor. [1955 c 390 § 7. Prior: 1945 c 143 § 1(e), part;
1931 c 1 § 6(e), part; Rem. Supp. 1945 § 11610(e), part.]
exceeding forty-five cents per thousand dollars of assessed
value in any one year, exclusive of interest and redemption
for general obligation bonds. The commission shall prepare a
proposed budget of the contemplated financial transactions
for the ensuing year and file it in its records, on or before the
first Monday in September. Notice of the filing of the proposed budget and the date and place of hearing thereon shall
be published for at least two consecutive weeks in a newspaper printed and of general circulation in the county. On the
first Monday in October, the commission shall hold a public
hearing on the proposed budget at which any taxpayer may
appear and be heard against the whole or any part thereof.
Upon the conclusion of the hearing, the commission shall, by
resolution, adopt the budget as finally determined, and fix the
final amount of expenditures for the ensuing year. Taxes levied by the commission shall be certified to and collected by
the proper officer of the county in which the district is located
in the same manner as provided for the certification and collection of port district taxes. The commission may, prior to
the receipt of taxes raised by levy, borrow money or issue
warrants of the district in anticipation of the revenue to be
derived from the levy or taxes for district purposes, and the
warrants shall be redeemed from the first money available
from such taxes. The warrants shall not exceed the anticipated revenue of one year, and shall bear interest at a rate
determined by the commission. [1981 c 156 § 18; 1973 1st
ex.s. c 195 § 60; 1955 c 390 § 9. Prior: 1945 c 143 § 1(g);
1931 c 1 § 6(g); Rem. Supp. 1945 § 11610(g).]
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
Application of one percentum levy limitation to public utility district: State
Constitution Art. 7 § 2 and RCW 84.52.050.
54.16.070
54.16.070 District may borrow money, contract
indebtedness, issue bonds or obligations—Guaranty
fund. (1) A district may contract indebtedness or borrow
money for any corporate purpose on its credit or on the revenues of its public utilities, and to evidence such indebtedness
may issue general obligation bonds or revenue obligations;
may issue and sell local utility district bonds of districts created by the commission, and may purchase with surplus
funds such local utility district bonds, and may create a guaranty fund to insure prompt payment of all local utility district
bonds. The general obligation bonds shall be issued and sold
in accordance with chapter 39.46 RCW. A district is authorized to establish lines of credit or make other prearranged
agreements, or both, to borrow money with any financial
institution.
(2) Notwithstanding subsection (1) of this section, such
revenue obligations and local utility district bonds may be
issued and sold in accordance with chapter 39.46 RCW.
[1991 c 74 § 1; 1984 c 186 § 44; 1983 c 167 § 144; 1959 c 218
§ 1; 1955 c 390 § 8. Prior: 1945 c 143 § 1(f); 1931 c 1 § 6(f);
Rem. Supp. 1945 § 11610(f).]
Purpose—1984 c 186: See note following RCW 39.46.110.
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
54.16.080
54.16.080 Levy and collection of taxes—Tax anticipation warrants. A district may raise revenue by the levy of
an annual tax on all taxable property within the district, not
[Title 54 RCW—page 14]
Collection of taxes by port districts: RCW 53.36.020.
54.16.083
54.16.083 Community revitalization financing—
Public improvements. In addition to other authority that a
public utility district possesses, a public utility district may
provide any public improvement as defined under RCW
39.89.020, but this additional authority is limited to participating in the financing of the public improvements as provided under RCW 39.89.050.
This section does not limit the authority of a public utility district to otherwise participate in the public improvements if that authority exists elsewhere. [2001 c 212 § 19.]
Severability—2001 c 212: See RCW 39.89.902.
54.16.085
54.16.085 Interfund loans. A public utility district
may make and repay interfund loans between its funds.
[1987 c 18 § 2.]
54.16.090
54.16.090 Contracts with other agencies or utilities—
Gifts, etc.—Employees and experts—Advancements. A
district may enter into any contract or agreement with the
United States, or any state, municipality, or other utility district, or any department of those entities, or with any cooperative, mutual, consumer-owned utility, or with any investorowned utility or with an association of any of such utilities,
for carrying out any of the powers authorized by this title.
(2004 Ed.)
Powers
It may acquire by gift, devise, bequest, lease, or purchase, real and personal property necessary or convenient for
its purposes, or for any local district therein.
It may make contracts, employ engineers, attorneys, and
other technical or professional assistance; print and publish
information or literature; advertise or promote the sale and
distribution of electricity or water and do all other things necessary to carry out the provisions of this title.
It may advance funds, jointly fund or jointly advance
funds for surveys, plans, investigations, or studies as set forth
in RCW 54.16.010, including costs of investigations, design
and licensing of properties and rights of the type described in
RCW 54.16.020, including the cost of technical and professional assistance, and for the advertising and promotion of
the sale and distribution of electricity or water. [1969 c 106
§ 7; 1955 c 390 § 10. Prior: 1945 c 143 § 1(h), (i), (j), part;
1931 c 1 § 6(h), (i), (j), part; Rem. Supp. 1945 § 11610(h), (i),
(j), part.]
Construction—Severability—1969 c 106: See notes following RCW
54.08.041.
54.16.092 Employment interview expenses. When a
district commission finds that a vacancy for a technical or
managerial position requires special qualifications or entails
responsibilities and duties of such a nature that substantial
benefits will accrue to the district from personal interviews of
candidates for such a vacancy to be held in the district, the
district commission, by resolution adopted at a regular meeting, may authorize the payment of actual necessary travel and
living expenses of such candidates incurred while in travel
status. [1975 1st ex.s. c 140 § 1.]
54.16.092
Special purpose districts, expenditures to recruit job candidates: RCW
42.24.170.
54.16.095 Liability insurance for officials and
employees. The board of commissioners of each public utility district may purchase liability insurance with such limits
as they may deem reasonable for the purpose of protecting
their officials and employees against liability for personal or
bodily injuries and property damage arising from their acts or
omissions while performing or in good faith purporting to
perform their official duties. [1973 c 125 § 5.]
54.16.095
54.16.096 Liability insurance for officers and
employees authorized. See RCW 36.16.138.
54.16.096
54.16.097 Actions against officer, employee, or
agent—Defense and costs provided by public utility district—Exception. Whenever any action, claim or proceeding is instituted against any person who is or was an officer,
employee, or agent of a public utility district established
under this title arising out of the performance or failure of
performance of duties for, or employment with any such district, the commission of the district may grant a request by
such person that the attorney of the district's choosing be
authorized to defend said claim, suit or proceeding, and the
costs of defense, attorney's fees, and any obligation for payment arising from such action may be paid from the district's
funds: PROVIDED, That costs of defense and/or judgment
or settlement against such person shall not be paid in any case
where the court has found that such person was not acting in
54.16.110
good faith or within the scope of his employment with or
duties for the district. [1975 c 60 § 2.]
54.16.100
54.16.100 Manager—Appointment—Compensation—Duties. The commission, by resolution introduced at
a regular meeting and adopted at a subsequent regular meeting, shall appoint and may remove at will a district manager,
and shall, by resolution, fix his or her compensation.
The manager shall be the chief administrative officer of
the district, in control of all administrative functions and shall
be responsible to the commission for the efficient administration of the affairs of the district placed in his or her charge.
The manager shall be an experienced executive with administrative ability. In the absence or temporary disability of the
manager, the manager shall, with the approval of the president of the commission, designate some competent person as
acting manager.
The manager may attend all meetings of the commission
and its committees, and take part in the discussion of any
matters pertaining to the duties of his or her department, but
shall have no vote.
The manager shall carry out the orders of the commission, and see that the laws pertaining to matters within the
functions of his or her department are enforced; keep the
commission fully advised as to the financial condition and
needs of the districts; prepare an annual estimate for the ensuing fiscal year of the probable expenses of the department,
and recommend to the commission what development work
should be undertaken, and what extensions and additions, if
any, should be made during the ensuing fiscal year, with an
estimate of the costs of the development work, extensions,
and additions; certify to the commission all bills, allowances,
and payrolls, including claims due contractors of public
works; recommend to the commission compensation of the
employees of his or her office, and a scale of compensation to
be paid for the different classes of service required by the district; hire and discharge employees under his or her direction;
and perform such other duties as may be imposed upon the
manager by resolution of the commission. It is unlawful for
the manager to make any contribution of money in aid of or
in opposition to the election of any candidate for public utility
commissioner or to advocate or oppose any such election.
[1990 c 16 § 1; 1955 c 390 § 11. Prior: 1945 c 143 § 1(j),
part; 1931 c 1 § 6(j), part; Rem. Supp. 1945 § 11610(j), part.]
54.16.097
(2004 Ed.)
54.16.110
54.16.110 May sue and be sued—Claims. A district
may sue in any court of competent jurisdiction, and may be
sued in the county in which its principal office is located or in
which it owns or operates facilities. No suit for damages shall
be maintained against a district except on a claim filed with
the district complying in all respects with the terms and
requirements for claims for damages set forth in chapter 4.96
RCW. [1993 c 449 § 11; 1979 ex.s. c 240 § 3; 1955 c 390 §
12. Prior: 1945 c 143 § 1(k); 1931 c 1 § 6(k); Rem. Supp.
1945 § 11610(k).]
Purpose—Severability—1993 c 449: See notes following RCW
4.96.010.
Claims against cities of the second class: RCW 35.31.040.
[Title 54 RCW—page 15]
54.16.120
Title 54 RCW: Public Utility Districts
54.16.120
54.16.120 Local utility districts authorized. A district
may, by resolution, establish and define the boundaries of
local assessment districts to be known as local utility district
No. . . . ., for distribution, under the general supervision and
control of the commission, of water for all purposes, public
and private, including domestic use, irrigation, and electric
energy, and for providing street lighting, or any of them, and
in like manner provide for the purchasing, or otherwise
acquiring, or constructing and equipping and maintaining and
operating distribution systems for such purposes, and for
extensions and betterments thereof, and may levy and collect
in accordance with the special benefits conferred thereon,
special assessments and reassessments on property specially
benefited thereby, for paying the cost and expense thereof, or
any portions thereof, as herein provided, and issue local
improvement bonds or warrants or both to be repaid wholly
or in part by collection of local improvement assessments. A
district also may form local utility districts located entirely or
in part outside its limits or the limits of the county in which
the district is located to provide water, or sewer facilities if
otherwise authorized under this title. [1999 c 154 § 2; 1975 c
46 § 1; 1955 c 390 § 13. Prior: 1951 c 209 § 1; 1945 c 143 §
1(l), part; 1931 c 1 § 6(l), part; Rem. Supp. 1945 § 11610(l),
part.]
Assessments and charges against state lands: Chapter 79.44 RCW.
Local improvements, supplemental authority: Chapter 35.51 RCW.
54.16.125
54.16.125 Exemption of farm and agricultural land
from special benefit assessments. See RCW 84.33.210
through 84.33.270, 84.34.300 through 84.34.380, and
84.34.922.
54.16.130
54.16.130 Local districts—Procedure—Financing.
The commission shall by resolution establish the method of
procedure in all matters relating to local utility districts. A
public utility district may determine by resolution what work
shall be done or improvements made at the expense, in whole
or in part, of the property specially benefited thereby; and
adopt and provide the manner, machinery and proceedings in
any way relating to the making and collecting of assessments
therefor in pursuance thereof. Except as herein otherwise provided or as may hereafter be set forth by resolution, all matters and proceedings relating to the local utility district, the
levying and collection of assessments, the issuance and
redemption of local improvement warrants and bonds, and
the enforcement of local assessment liens hereunder, shall be
governed, as nearly as may be, by the laws relating to local
improvements for cities and towns: PROVIDED, That no
protest against a local utility district improvement shall be
received after twelve o'clock noon of the day set for hearing.
Such bonds and warrants may be in any form, including
bearer bonds or bearer warrants, or registered warrants or
registered bonds as provided in RCW 39.46.030. Such bonds
and warrants may also be issued and sold in accordance with
chapter 39.46 RCW.
The commission may determine to finance the project by
bonds or warrants secured by assessments against the property within the local utility district: Or it may finance the
project by revenue bonds, in which case no bonds or warrants
shall be issued by the local utility district, but assessments
[Title 54 RCW—page 16]
shall be levied upon the taxable property therein on the basis
of special benefits up to, but not exceeding the total cost of
the improvement and in such cases the entire principal and
interest of such assessments shall be paid into a revenue bond
fund of the district, to be used for the sole purpose of the payment of revenue bonds. [1983 c 167 § 145; 1955 c 390 § 14.
Prior: 1951 c 209 § 2; 1945 c 143 § 1(l), part; 1931 c 1 § 6(l),
part; Rem. Supp. 1945 § 11610(l), part.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Local improvement
first class cities: Chapters 35.43 through 35.56 RCW.
guaranty fund: RCW 54.24.200 through 54.24.260.
54.16.140
54.16.140 Petition or resolution for local district—
Hearing—Notice. Any such improvement shall be ordered
by resolution of the commission either upon petition or resolution therefor. When a petition, signed by ten percent of the
owners of land in the district to be therein described, is filed
with the commission, asking that the plan or improvement
therein set forth be adopted and ordered, and defining the
boundaries of a local improvement district to be assessed in
whole or in part to pay the cost thereof, the commission shall
fix the date of hearing thereon, and give not less than two
weeks notice thereof by publication. The commission may
deny the petition or order the improvement, unless a majority
of the owners of lands in the district file prior to twelve
o'clock noon of the day of the hearing, with the secretary a
petition protesting against the improvement. If the commission orders the improvement, it may alter the boundaries of
the proposed local district and prepare and adopt detail plans
of the local improvement, declare the estimated cost thereof,
what proportion thereof shall be borne by the local improvement district, and what proportion, if any shall be borne by
the entire public utility district. [1955 c 390 § 15. Prior: 1945
c 143 § 1(l), part; 1931 c 1 § 6(l), part; Rem. Supp. 1945 §
11610(l), part.]
54.16.142
54.16.142 Local utility districts—Notice must contain statement that assessments may vary from estimates.
Any notice given to the public or to the owners of specific
lots, tracts, or parcels of land relating to the formation of a
local utility district shall contain a statement that actual
assessments may vary from assessment estimates so long as
they do not exceed a figure equal to the increased true and fair
value the improvement, or street lighting, adds to the property. [1989 c 243 § 9.]
54.16.145
54.16.145 Local utility districts—Sanitary sewer or
potable water facilities—Notice to certain property owners. Whenever it is proposed that a local utility district
finance sanitary sewers or potable water facilities, additional
notice of the public hearing on the proposed local utility district shall be mailed to the owners of any property located
outside of the proposed local utility district that would be
required as a condition of federal housing administration loan
qualification, at the time of notice, to be connected to the specific sewer or water facilities installed by the local utility district. The notice shall include information about this restriction. [1987 c 315 § 4.]
(2004 Ed.)
Powers
54.16.150
54.16.150 Procedure when petition is signed by
majority of landowners. When a petition signed by a
majority of the landowners in a proposed local improvement
district is filed with the commission, asking that the improvement therein described be ordered, the commission shall
forthwith fix a date for hearing thereon after which it shall, by
resolution, order the improvement, and may alter the boundaries of the proposed district; prepare and adopt the improvement; prepare and adopt detail plans thereof; declare the estimated cost thereof, what proportion of the cost shall be borne
by the local district, and what proportion, if any, shall be
borne by the entire public utility district, and provide the general funds thereof to be applied thereto, if any; acquire all
lands and other properties therefor; pay all damages caused
thereby; and commence in the name of the public utility district such eminent domain proceedings and supplemental
assessment or reassessment proceedings to pay all eminent
domain awards necessary to entitle the district to proceed
with the work, and shall thereafter proceed with the work,
and shall file with the county treasurer its roll levying special
assessments in the amount to be paid by special assessment
against the property in the local improvement district in proportion to the special benefits to be derived by the property in
the local district from the improvement: PROVIDED, HOWEVER, No such improvement shall be ordered unless the
same appears to the commission to be financially and economically feasible: AND PROVIDED FURTHER, That the
commission may require as a condition to ordering such
improvement or to making its determination as to the financial and economic feasibility, that all or a portion of such
engineering, legal or other costs incurred or to be incurred by
the commission in determining financial and economic feasibility shall be borne or guaranteed by the petitioners of the
proposed local improvement district under such rules as the
commission may adopt. No person shall withdraw his name
from the petition after the same has been filed with the commission. [1959 c 142 § 3; 1955 c 390 § 16. Prior: 1945 c 143
§ 1(l), part; 1931 c 1 § 6(l), part; Rem. Supp. 1945 § 11610(l),
part.]
54.16.160
54.16.160 Assessment roll—Hearing—Appellate
review—Expenses. Before approval of the roll, a notice
shall be published once each week for two successive weeks
in a newspaper of general circulation in the county, stating
that the roll is on file and open to inspection in the office of
the secretary, and fixing a time not less than fifteen nor more
than thirty days from the date of the first publication of the
notice, within which protests must be filed with the secretary
against any assessments shown thereon, and fixing a time
when a hearing shall be held by the commission on the protests. After the hearing the commission may alter any and all
assessments shown on the roll and may, by resolution,
approve it, but if an assessment is raised, a new notice, similar to the first, shall be given, and a hearing had thereon, after
which final approval of the roll may be made. Any person
aggrieved by the assessments shall perfect an appeal to the
superior court of the county within ten days after the
approval, in the manner provided for appeals from assessments levied by cities of the first class. In the event such an
appeal shall be taken, the judgment of the court shall confirm
the assessment insofar as it affects the property of the appel(2004 Ed.)
54.16.165
lant unless the court shall find from the evidence that such
assessment is founded upon a fundamentally wrong basis
and/or the decision of the commission thereon was arbitrary
or capricious; in which event the judgment of the court shall
correct, change, modify, or annul the assessment insofar as it
affects the property of the appellant. In the same manner as
provided with reference to cities of the first class appellate
review of the judgment of the superior court may be sought,
as in other cases, within fifteen days after the date of the entry
of the judgment in the superior court. Engineering, office,
and other expenses necessary or incident to the improvement
shall be borne by the public utility district: PROVIDED,
That when a municipal corporation included in the public
utility district already owns or operates a utility of a character
like that for which the assessments are levied hereunder, all
such engineering and other expenses shall be borne by the
local assessment district. [1988 c 202 § 51; 1971 c 81 § 123;
1959 c 142 § 4; 1955 c 390 § 17. Prior: 1945 c 143 § 1(l),
part; 1931 c 1 § 6(l), part; Rem. Supp. 1945 c 11610(l), part.]
Severability—1988 c 202: See note following RCW 2.24.050.
Procedure on appeal from assessments levied by cities of the first class:
RCW 35.44.200 through 35.44.270.
54.16.165
54.16.165 Segregation of assessments. Whenever any
land against which there has been levied any special assessment by any public utility district shall have been sold in part
or subdivided, the board of commissioners of such public
utility district shall have the power to order a segregation of
the assessment.
Any person owning any part of the land involved in a
special assessment and desiring to have such special assessment against the tracts of land segregated to apply to smaller
parts thereof shall apply in writing to the board of commissioners of the public utility district which levied the assessment. If the commissioners determine that a segregation
should be made they shall do so as nearly as possible on the
same basis as the original assessment was levied and the total
of the segregated parts of the assessment shall equal the
assessment before segregation.
The commission shall then send notice thereof by mail to
the several owners interested in the tract, as shown on the
general tax rolls. If no protest is filed within twenty days from
date of mailing said notice, the commission shall then by resolution approve said segregation. If a protest is filed, the
commission shall have a hearing thereon, after mailing to the
several owners at least ten days notice of the time and place
thereof. After the hearing, the commission may by resolution
approve said segregation, with or without change. Within ten
days after the approval, any person aggrieved by the segregation may perfect an appeal to the superior court of the county
wherein the property is situated and thereafter seek appellate
review, all as provided for appeals from assessments levied
by cities of the first class. The resolution approving said segregation shall describe the original tract, the amount and date
of the original assessment, and shall define the boundaries of
the divided parts and the amount of the assessment chargeable to each part, and shall order the county treasurer to make
segregation on the original assessment roll as directed in the
resolution. A certified copy of the resolution shall be delivered to the county treasurer who shall proceed to make the
segregation ordered. The board of commissioners may
[Title 54 RCW—page 17]
54.16.170
Title 54 RCW: Public Utility Districts
require as a condition to the order of segregation that the person seeking it pay the public utility district the reasonable
engineering and clerical costs incident to making the segregation. Unless otherwise provided in said resolution, the county
treasurer shall apportion amounts paid on the original assessment in the same proportion as the segregated assessments
bear to the original assessment. Upon segregation being made
by the county treasurer, as aforesaid, the lien of the special
assessment shall apply to the segregated parcels only to the
extent of the segregated part of such assessment. [1988 c 202
§ 52; 1971 c 81 § 124; 1959 c 142 § 1.]
Severability—1988 c 202: See note following RCW 2.24.050.
54.16.170
54.16.170 Apportionment of cost of improvement.
When an improvement is ordered hereunder, payment for
which shall be made in part from assessments against property specially benefited, not more than fifty percent of the
cost thereof shall ever be borne by the entire public utility
district, nor shall any sum be contributed by it to any
improvement acquired or constructed with or by any other
body, exceed such amount, unless a majority of the electors
of the district consent to or ratify the making of such expenditure. [1955 c 390 § 18. Prior: 1945 c 143 § 1(l), part; 1931
c 1 § 6(l), part; Rem. Supp. 1945 § 11610(l), part.]
54.16.180
54.16.180 Sale, lease, disposition of properties, equipment, and materials—Procedure—Acquisition, operation
of sewage system by districts in certain counties. A district
may sell and convey, lease, or otherwise dispose of all or any
part of its works, plants, systems, utilities and properties,
after proceedings and approval by the voters of the district, as
provided for the lease or disposition of like properties and
facilities owned by cities and towns: PROVIDED, That the
affirmative vote of three-fifths of the voters voting at an election on the question of approval of a proposed sale, shall be
necessary to authorize such sale: PROVIDED FURTHER,
That a district may sell, convey, lease or otherwise dispose of
all or any part of the property owned by it, located outside its
boundaries, to another public utility district, city, town or
other municipal corporation without the approval of the voters; or may sell, convey, lease, or otherwise dispose of to any
person or public body, any part, either within or without its
boundaries, which has become unserviceable, inadequate,
obsolete, worn out or unfit to be used in the operations of the
system and which is no longer necessary, material to, and
useful in such operations, without the approval of the voters:
PROVIDED FURTHER, That a district may sell, convey,
lease or otherwise dispose of items of equipment or materials
to any other district, to any cooperative, mutual, consumerowned or investor-owned utility, to any federal, state, or local
government agency, to any contractor employed by the district or any other district, utility, or agency, or any customer
of the district or of any other district or utility, from the district's stores without voter approval or resolution of the district's board, if such items of equipment or materials cannot
practicably be obtained on a timely basis from any other
source, and the amount received by the district in consideration for any such sale, conveyance, lease, or other disposal
of such items of equipment or materials is not less than the
district's cost to purchase such items or the reasonable market
[Title 54 RCW—page 18]
value of equipment or materials: PROVIDED FURTHER,
That a public utility district located within a county with a
population of from one hundred twenty-five thousand to less
than two hundred ten thousand may sell and convey to a city
of the first class, which owns its own water system, all or any
part of a water system owned by said public utility district
where a portion of it is located within the boundaries of such
city, without approval of the voters upon such terms and conditions as the district shall determine: PROVIDED FURTHER, That a public utility district located in a county with a
population of from twelve thousand to less than eighteen
thousand and bordered by the Columbia river may, separately
or in connection with the operation of a water system, or as
part of a plan for acquiring or constructing and operating a
water system, or in connection with the creation of another or
subsidiary local utility district, may provide for the acquisition or construction, additions or improvements to, or extensions of, and operation of a sewage system within the same
service area as in the judgment of the district commission is
necessary or advisable in order to eliminate or avoid any
existing or potential danger to the public health by reason of
the lack of sewerage facilities or by reason of the inadequacy
of existing facilities: AND PROVIDED FURTHER, That a
public utility district located within a county with a population of from one hundred twenty-five thousand to less than
two hundred ten thousand bordering on Puget Sound may sell
and convey to any city or town with a population of less than
ten thousand all or any part of a water system owned by said
public utility district without approval of the voters upon
such terms and conditions as the district shall determine. Public utility districts are municipal corporations for the purposes
of this section and the commission shall be held to be the legislative body and the president and secretary shall have the
same powers and perform the same duties as the mayor and
city clerk and the resolutions of the districts shall be held to
be ordinances within the meaning of the statutes governing
the sale, lease, or other disposal of public utilities owned by
cities and towns. [1999 c 69 § 1; 1994 c 81 § 78; 1991 c 363
§ 135; 1977 ex.s. c 31 § 1; 1963 c 196 § 1; 1959 c 275 § 1;
1955 c 390 § 19. Prior: 1945 c 143 § 1(m); 1931 c 1 § 6(m);
Rem. Supp. 1945 § 11610(m).]
Purpose—Captions not law—1991 c 363: See notes following RCW
2.32.180.
54.16.190
54.16.190 General resolutions. The commission of a
district may adopt general resolutions to carry out the purposes, objects, and provisions of this title. [1955 c 390 § 20.
Prior: 1945 c 143 § 1(n); 1931 c 1 § 6(n); Rem. Supp. 1945
§ 11610(n).]
54.16.200
54.16.200 Joint exercise of powers and joint acquisition of properties. Any two or more public utility districts
organized under the provisions of the laws of this state shall
have the power, by mutual agreement, to exercise jointly all
powers granted to each individual district, and in the exercise
of such powers shall have the right and power to acquire
jointly all or any part of any electric utility properties which,
at *the time of the passage of this act, constitutes an interconnected and physically integrated electric utility system,
whether entirely within or partly within and partly without
such districts: PROVIDED, That any two or more districts so
(2004 Ed.)
Powers
acting jointly, by mutual agreement, shall not acquire any
electric utility distribution properties in any other public utility district without the consent of such district, and shall not
exercise jointly the power to condemn any privately owned
utility property or any public utility owned by a municipality,
to levy taxes or, to create subdistricts. [1949 c 227 § 2; Rem.
Supp. 1949 § 10459-15.]
*Reviser's note: As to "the time of the passage of this act," the legislative history of chapter 227, Laws of 1949 is as follows: Passed the house
March 8, 1949; passed the senate March 7, 1949; approved by the governor
March 22, 1949.
Joint operating agency: RCW 43.52.360.
54.16.210
54.16.210 Joint acquisition, operation, etc., with city
of electrical utility properties. See chapter 35.92 RCW.
54.16.280
works as authorized by this section, the voters of the public
utility district shall first approve by majority vote a referendum proposition authorizing such district to exercise the
powers set forth in this section, which proposition shall be
presented at a general election. [1975 1st ex.s. c 57 § 1.]
54.16.240
54.16.240 Sewage system works—Resolution or petition—Voter approval or rejection. The commission of a
public utility district, by resolution may, or on petition in the
same manner as provided for the creation of a district under
RCW 54.08.010 shall, submit to the voters for their approval
or rejection the proposal that said public utility district be
authorized to exercise the powers set forth in RCW
54.16.230. [1975 1st ex.s. c 57 § 2.]
54.16.250
54.16.220
54.16.220 Columbia river hydroelectric projects—
Grant back of easements to former owners. Notwithstanding any other provision of law, every public utility district
acquiring privately owned lands, real estate or property for
reservoir purposes of a hydroelectric power project dam on
the Columbia river, upon acquisition of title to said lands,
whether acquired by purchase or condemnation, shall grant
back to the former owners of the lands acquired upon their
request therefor, whether prior to conveyance of title to the
district or within sixty days thereafter, a perpetual easement
appurtenant to the adjoining property for such occupancy and
use and improvement of the acquired lands as will not be detrimental to the operation of the hydroelectric project and not
be in violation of the required conditions of the district's Federal Power Commission license for the project: PROVIDED,
That said former owners shall not thereafter erect any structure or make any extensive physical change thereon except
under a permit issued by the public utility district: PROVIDED FURTHER, That said easement shall include a provision that any shorelands thereunder shall be open to the
public, and shall be subject to cancellation upon sixty days
notice to the owners by the district that such lands are to be
conveyed to another public agency for game or game fish
purposes or public recreational use, in which event the owners shall remove any structures they may have erected
thereon within a reasonable time without cost to the district.
The provisions of this section shall not be applicable with
respect to: (1) lands acquired from an owner who does not
desire an easement for such occupancy and use; (2) lands
acquired from an owner where the entire estate has been
acquired; (3) lands acquired for, and reasonably necessary
for, project structures (including borrow areas) or for relocation of roads, highways, railroads, other utilities or railroad
industrial sites; and (4) lands heretofore acquired or disposed
of by sale or lease by a public utility district for whatsoever
purpose. [1965 ex.s. c 118 § 1.]
54.16.230
54.16.230 Sewage system works—Acquire, construct, operate, etc.—Authorizing election—Procedure.
A public utility district may acquire, construct, operate, maintain, and add to sewage systems, subject to and in compliance
with the county comprehensive plan, under the general powers of Title 54 RCW or through the formation of local utility
districts as provided in RCW 54.16.120 through 54.16.170:
PROVIDED, That prior to engaging in any sewage system
(2004 Ed.)
54.16.250 Sewage system works—Ballot proposition—Canvass. The legislative authority of the county in
which the public utility district is located, upon receipt of the
resolution of the public utility district commission or petition
as provided for in RCW 54.08.010, shall submit such proposal to the voters of the district at the next general election
in substantially the following terms:
Shall Public Utility District No. . . . . of . . . . . . County
be authorized to acquire, construct, operate, maintain, and
add to sewage systems?
Yes '
No '
Within ten days after such election, the election board of
the county shall canvass the returns, and if at such election a
majority of voters voting on the proposition shall vote in
favor of such authority, the district shall have the powers set
forth in RCW 54.16.230. [1975 1st ex.s. c 57 § 3.]
54.16.260
54.16.260 Sewage system works—Accounts and
funding. Accounts and funding for any sewage system or
systems shall be kept as provided in RCW 43.09.210. [1975
1st ex.s. c 57 § 4.]
54.16.270
54.16.270 Sewage system works—Existing authority
not affected. Nothing contained in RCW 54.16.230 through
54.16.260 shall change or alter the present authority of certain public utility districts as regards sewage systems and as
provided in RCW 54.16.180. [1975 1st ex.s. c 57 § 5.]
54.16.280
54.16.280 Energy conservation plan—Financing
authorized for energy conservation projects in structures
or equipment—Limitations. Any district is hereby authorized, within limits established by the Constitution of the
state of Washington, to assist the owners of structures or
equipment in financing the acquisition and installation of
materials and equipment, for compensation or otherwise, for
the conservation or more efficient use of energy in such structures or equipment pursuant to an energy conservation plan
adopted by the district if the cost per unit of energy saved or
produced by the use of such materials and equipment is less
than the cost per unit of energy produced by the next least
costly new energy resource which the district could acquire
to meet future demand. Any financing authorized under this
chapter shall only be used for conservation purposes in exist[Title 54 RCW—page 19]
54.16.285
Title 54 RCW: Public Utility Districts
ing structures, and such financing shall not be used for any
purpose which results in a conversion from one energy
source to another. For the purposes of this section, "conservation purposes in existing structures" may include projects to
allow a district's customers to generate all or a portion of their
own electricity through the on-site installation of a distributed electricity generation system that uses as its fuel solar,
wind, geothermal, or hydropower, or other renewable
resource that is available on-site and not from a commercial
source. Such projects shall not be considered "a conversion
from one energy source to another" which is limited to the
change or substitution of one commercial energy supplier for
another commercial energy supplier. Except where otherwise
authorized, such assistance shall be limited to:
(1) Providing an inspection of the structure or equipment, either directly or through one or more inspectors under
contract, to determine and inform the owner of the estimated
cost of purchasing and installing conservation materials and
equipment for which financial assistance will be approved
and the estimated life cycle savings in energy costs that are
likely to result from the installation of such materials or
equipment;
(2) Providing a list of businesses who sell and install
such materials and equipment within or in close proximity to
the service area of the district, each of which businesses shall
have requested to be included and shall have the ability to
provide the products in a workmanlike manner and to utilize
such materials in accordance with the prevailing national
standards.
(3) Arranging to have approved conservation materials
and equipment installed by a private contractor whose bid is
acceptable to the owner of the residential structure and verifying such installation; and
(4) Arranging or providing financing for the purchase
and installation of approved conservation materials and
equipment. Such materials and equipment shall be purchased
from a private business and shall be installed by a private
business or the owner.
(5) Pay back shall be in the form of incremental additions to the utility bill, billed either together with use charge
or separately. Loans shall not exceed one hundred twenty
months in length. [2002 c 276 § 3; 1989 c 268 § 2; 1979 ex.s.
c 239 § 3.]
Findings—Intent—2002 c 276: See note following RCW 35.92.360.
Legislative declaration—Effective date—Contingency—1979 ex.s. c
239: See RCW 35.92.355 and note following RCW 35.92.360.
54.16.285
54.16.285 Limitations on termination of utility service for residential heating. (1) A district providing utility
service for residential space heating shall not terminate such
utility service between November 15 through March 15 if the
customer:
(a) Notifies the utility of the inability to pay the bill,
including a security deposit. This notice should be provided
within five business days of receiving a payment overdue
notice unless there are extenuating circumstances. If the customer fails to notify the utility within five business days and
service is terminated, the customer can, by paying reconnection charges, if any, and fulfilling the requirements of this
section, receive the protections of this chapter;
[Title 54 RCW—page 20]
(b) Provides self-certification of household income for
the prior twelve months to a grantee of the department of
community, trade, and economic development which administers federally funded energy assistance programs. The
grantee shall determine that the household income does not
exceed the maximum allowed for eligibility under the state's
plan for low-income energy assistance under 42 U.S.C. 8624
and shall provide a dollar figure that is seven percent of
household income. The grantee may verify information provided in the self-certification;
(c) Has applied for home heating assistance from applicable government and private sector organizations and certifies that any assistance received will be applied to the current
bill and future utility bills;
(d) Has applied for low-income weatherization assistance to the utility or other appropriate agency if such assistance is available for the dwelling;
(e) Agrees to a payment plan and agrees to maintain the
payment plan. The plan will be designed both to pay the past
due bill by the following October 15 and to pay for continued
utility service. If the past due bill is not paid by the following
October 15, the customer shall not be eligible for protections
under this chapter until the past due bill is paid. The plan shall
not require monthly payments in excess of seven percent of
the customer's monthly income plus one-twelfth of any
arrearage accrued from the date application is made and
thereafter during November 15 through March 15. A customer may agree to pay a higher percentage during this
period, but shall not be in default unless payment during this
period is less than seven percent of monthly income plus onetwelfth of any arrearage accrued from the date application is
made and thereafter. If assistance payments are received by
the customer subsequent to implementation of the plan, the
customer shall contact the utility to reformulate the plan; and
(f) Agrees to pay the moneys owed even if he or she
moves.
(2) The utility shall:
(a) Include in any notice that an account is delinquent
and that service may be subject to termination, a description
of the customer's duties in this section;
(b) Assist the customer in fulfilling the requirements
under this section;
(c) Be authorized to transfer an account to a new residence when a customer who has established a plan under this
section moves from one residence to another within the same
utility service area;
(d) Be permitted to disconnect service if the customer
fails to honor the payment program. Utilities may continue to
disconnect service for those practices authorized by law other
than for nonpayment as provided for in this section. Customers who qualify for payment plans under this section who
default on their payment plans and are disconnected can be
reconnected and maintain the protections afforded under this
chapter by paying reconnection charges, if any, and by paying all amounts that would have been due and owing under
the terms of the applicable payment plan, absent default, on
the date on which service is reconnected; and
(e) Advise the customer in writing at the time it disconnects service that it will restore service if the customer contacts the utility and fulfills the other requirements of this section.
(2004 Ed.)
Powers
(3) All districts providing utility service for residential
space heating shall offer residential customers the option of a
budget billing or equal payment plan. The budget billing or
equal payment plan shall be offered low-income customers
eligible under the state's plan for low-income energy assistance prepared in accordance with 42 U.S.C. 8624(C)(1)
without limiting availability to certain months of the year,
without regard to the length of time the customer has occupied the premises, and without regard to whether the customer is the tenant or owner of the premises occupied.
(4) An agreement between the customer and the utility,
whether oral or written, shall not waive the protections
afforded under this chapter. [1995 c 399 § 144; 1991 c 165 §
3; 1990 1st ex.s. c 1 § 3; 1986 c 245 § 3; 1985 c 6 § 19; 1984
c 251 § 2.]
Findings—1991 c 165: See note following RCW 35.21.300.
54.16.300
54.16.300 Combined utility functions. A public utility
district by resolution may combine two or more of its separate utility functions into a single utility and combine its
related funds or accounts into a single fund or account. The
separate utility functions include electrical energy systems,
domestic water systems, irrigation systems, sanitary sewer
systems, and storm sewer systems. All powers granted to
public utility districts to acquire, construct, maintain, and
operate such systems may be exercised in the joint acquisition, construction, maintenance, and operation of such combined systems. The establishment, maintenance, and operation of the combined system shall be governed by the public
utility district statutes relating to one of the utility systems
that is being combined, as specified in the resolution combining the utility systems. [1987 c 18 § 1.]
54.16.310
54.16.310 Operation, maintenance, and inspection of
sewage disposal facilities, septic tanks, and wastewater
disposal facilities and systems—Maintenance costs. A
public utility district as authorized by a county board of
health, may perform operation and maintenance, including
inspections, of on-site sewage disposal facilities, alternate
sewage disposal facilities, approved septic tanks or approved
septic tank systems, other facilities and systems for the collection, interception, treatment, and disposal of wastewater,
and for the control and protection, preservation, and rehabilitation of surface and underground waters. Those costs associated with the maintenance of private on-site sewage systems
may be charged by the public utility district to the system
owner. [1990 c 107 § 1.]
54.16.320
54.16.320 Assumption of substandard water system—Limited immunity from liability. A public utility
district assuming responsibility for a water system that is not
in compliance with state or federal requirements for public
drinking water systems, and its agents and employees, are
immune from lawsuits or causes of action, based on noncompliance with state or federal requirements for public drinking
water systems, which predate the date of assuming responsibility and continue after the date of assuming responsibility,
provided that the public utility district has submitted and is
complying with a plan and schedule of improvements
approved by the department of health. This immunity shall
(2004 Ed.)
54.16.330
expire on the earlier of the date the plan of improvements is
completed or four years from the date of assuming responsibility. This immunity does not apply to intentional injuries,
fraud, or bad faith. [1994 c 292 § 10.]
Findings—Intent—1994 c 292: See note following RCW 57.04.050.
54.16.330
54.16.330 Telecommunications facilities—Purposes—Limitations—Provision of wholesale telecommunications services—Eminent domain. (1) A public utility
district in existence on June 8, 2000, may construct, purchase, acquire, develop, finance, lease, license, handle, provide, add to, contract for, interconnect, alter, improve, repair,
operate, and maintain any telecommunications facilities
within or without the district's limits for the following purposes:
(a) For the district's internal telecommunications needs;
and
(b) For the provision of wholesale telecommunications
services within the district and by contract with another public utility district.
Nothing in this subsection shall be construed to authorize
public utility districts to provide telecommunications services to end users.
(2) A public utility district providing wholesale telecommunications services shall ensure that rates, terms, and conditions for such services are not unduly or unreasonably discriminatory or preferential. Rates, terms, and conditions are
discriminatory or preferential when a public utility district
offering rates, terms, and conditions to an entity for wholesale telecommunications services does not offer substantially
similar rates, terms, and conditions to all other entities seeking substantially similar services.
(3) A public utility district providing wholesale telecommunications services shall not be required to but may establish a separate utility system or function for such purpose. In
either case, a public utility district providing wholesale telecommunications services shall separately account for any
revenues and expenditures for those services according to
standards established by the state auditor pursuant to its
authority in chapter 43.09 RCW and consistent with the provisions of this title. Any revenues received from the provision of wholesale telecommunications services must be dedicated to costs incurred to build and maintain any telecommunications facilities constructed, installed, or acquired to
provide such services, including payments on debt issued to
finance such services, until such time as any bonds or other
financing instruments executed after June 8, 2000, and used
to finance such telecommunications facilities are discharged
or retired.
(4) When a public utility district provides wholesale telecommunications services, all telecommunications services
rendered to the district for the district's internal telecommunications needs shall be allocated or charged at its true and full
value. A public utility district may not charge its nontelecommunications operations rates that are preferential or discriminatory compared to those it charges entities purchasing
wholesale telecommunications services.
(5) A public utility district shall not exercise powers of
eminent domain to acquire telecommunications facilities or
[Title 54 RCW—page 21]
54.16.340
Title 54 RCW: Public Utility Districts
contractual rights held by any other person or entity to telecommunications facilities.
(6) Except as otherwise specifically provided, a public
utility district may exercise any of the powers granted to it
under this title and other applicable laws in carrying out the
powers authorized under this section. Nothing in chapter 81,
Laws of 2000 limits any existing authority of a public utility
district under this title. [2004 c 158 § 1; 2000 c 81 § 3.]
Findings—2000 c 81: See note following RCW 53.08.005.
54.16.340
54.16.340 Wholesale telecommunications services—
Petition for review of rates, terms, conditions. (1) A person or entity that has requested wholesale telecommunications services from a public utility district providing wholesale telecommunications services under this chapter may
petition the commission under the procedures set forth in
RCW 80.04.110 (1) through (3) if it believes the district's
rates, terms, and conditions are unduly or unreasonably discriminatory or preferential. The person or entity shall provide
the public utility district notice of its intent to petition the
commission and an opportunity to review within thirty days
the rates, terms, and conditions as applied to it prior to submitting its petition. In determining whether a district is providing discriminatory or preferential rates, terms, and conditions, the commission may consider such matters as service
quality, cost of service, technical feasibility of connection
points on the district's facilities, time of response to service
requests, system capacity, and other matters reasonably
related to the provision of wholesale telecommunications services. If the commission, after notice and hearing, determines
that a public utility district's rates, terms, and conditions are
unduly or unreasonably discriminatory or preferential, it shall
issue a final order finding noncompliance with this section
and setting forth the specific areas of apparent noncompliance. An order imposed under this section shall be enforceable in any court of competent jurisdiction.
(2) The commission may order a public utility district to
pay a share of the costs incurred by the commission in connection with adjudicating or enforcing the provisions of this
section.
(3) Without limiting other remedies at law or equity, the
commission and prevailing party may also seek injunctive
relief to compel compliance with an order.
(4) Nothing in this section shall be construed to affect the
commission's authority and jurisdiction with respect to
actions, proceedings, or orders permitted or contemplated for
a state commission under the federal telecommunications act
of 1996, P.L. 104-104 (110 Stat. 56). [2000 c 81 § 5.]
Findings—2000 c 81: See note following RCW 53.08.005.
54.16.350
54.16.350 Tariff for irrigation pumping service—
Authority to buy back electricity. The commission may
approve a tariff for irrigation pumping service that allows the
district to buy back electricity from customers to reduce electricity usage by those customers during the district's particular irrigation season. [2001 c 122 § 2.]
Effective date—2001 c 122: See note following RCW 80.28.310.
54.16.360
54.16.360 Cooperative watershed management. In
addition to the authority provided in RCW 54.16.030 relating
[Title 54 RCW—page 22]
to water supply, a public utility district may participate in and
expend revenue on cooperative watershed management
actions, including watershed management partnerships under
RCW 39.34.210 and other intergovernmental agreements, for
purposes of water supply, water quality, and water resource
and habitat protection and management. [2003 c 327 § 14.]
Finding—Intent—2003 c 327: See note following RCW 39.34.190.
54.16.370
54.16.370 Purchase of electric power and energy
from joint operating agency. A district may contract to purchase from a joint operating agency electric power and
energy required for its present or future requirements. For
projects the output of which is limited to qualified alternative
energy resources as defined by RCW 19.29A.090(3), the contract may include the purchase of capability of the projects to
produce electricity in addition to the actual output of the
projects. The contract may provide that the district must
make the payments required by the contract whether or not a
project is completed, operable, or operating and notwithstanding the suspension, interruption, interference, reduction,
or curtailment of the output of a project or the power and
energy contracted for. The contract may also provide that
payments under the contract are not subject to reduction,
whether by offset or otherwise, and shall not be conditioned
upon the performance or nonperformance of the joint operating agency or a city, town, or district under the contract or
other instrument. [2003 c 138 § 2.]
Chapter 54.20
Chapter 54.20 RCW
CONDEMNATION PROCEEDINGS
Sections
54.20.010
Statement of operations—Decree of appropriation—Retirement of properties—Accounting—Limitation on new proceedings.
54.20.010 Statement of operations—Decree of appropriation—Retirement of properties—Accounting—Limitation on new proceedings. In any condemnation proceeding heretofore or hereafter instituted or conducted by a public
utility district for the acquisition of properties, the district
may serve upon the condemnee's attorneys of record and file
with the court a notice of its intention to present a decree of
appropriation together with a demand for a verified statement
showing in reasonable detail the following information with
respect to the operation of the properties since the date of verdict, if the case was tried by jury, or since the date of the judgment fixing compensation, if the case was tried by the court,
namely: the cost of any improvements and betterments to the
properties which were reasonably necessary and prudently
made; the gross income received from the properties, betterments and improvements; the actual reasonable expense,
exclusive of depreciation, incurred in the operation thereof. If
the condemnee fails to serve and file the statement within fifteen days after service of the demand therefor, it may be compelled to do so by contempt proceedings, and the time during
which such proceedings are pending shall not be considered
in computing the time within which the district may exercise
its right of appropriation. After the statement is filed, the district may pay the amount of the verdict or judgment plus (1)
accrued interest thereon less the net income before allowance
54.20.010
(2004 Ed.)
Finances
for depreciation, and (2) the cost of such improvements and
betterments, all as shown by the sworn statement, and concurrently obtain its decree of appropriation. The condemnee
may retire from use after the verdict or judgment such items
of the properties as may be reasonably necessary in the ordinary and usual course of operation thereof, in which case it
shall show in its statement the reasonable value of such items
retired, and the district may deduct such value from the sum
otherwise payable by it. If the condemnee fails to file the
statement within fifteen days after service of the demand
therefor, the district at its option may pay the full amount of
the judgment or verdict plus accrued interest thereon and
concurrently obtain a decree of appropriation.
After payment has been made and the decree of appropriation entered as provided in this section, the district or the
condemnee shall be entitled to an accounting in the condemnation proceedings to determine the true amount of each item
required to be furnished in the above statement, and to payment of any balance found due in such accounting.
Whenever any such condemnation proceedings have
been, or hereafter may be abandoned, no new proceedings for
the acquisition of the same or substantially similar properties
shall be instituted until the expiration of one year from the
date of such abandonment, but such proceedings may be
instituted at any time thereafter. [1945 c 130 § 3; Rem. Supp.
1945 § 10459-13. Formerly RCW 54.20.010 through
54.20.050.]
Purpose—Severability—1945 c 130: See notes following RCW
54.04.100.
Chapter 54.24
Chapter 54.24 RCW
FINANCES
Sections
GENERAL PROVISIONS
54.24.010
54.24.012
Treasurer—Bond—Duties—Funds—Depositaries.
Destruction of canceled or paid revenue obligations and interest coupons.
BONDS OR WARRANTS—1931 ACT
54.24.018
Acquisition of property—Adoption of plan—Bonds or warrants—Special funds.
BONDS—REVENUE OBLIGATIONS—1941 ACT
54.24.020
54.24.030
54.24.040
54.24.050
54.24.060
54.24.070
54.24.080
54.24.090
54.24.100
54.24.110
54.24.120
General obligation bonds, revenue obligations for cost of utilities.
Revenue obligations—Special fund—Form, term, payment,
etc.—Resolution of authority, contents—Contracts for
future sale.
Considerations in creating special fund—Status of claims
against fund—When lien attaches.
Covenants to secure owners of revenue obligations.
Sale, delivery of revenue obligations.
Prima facie validity of revenue obligations.
Rates and charges—Waiver of connection charges for lowincome persons.
Funding, refunding revenue obligations.
Execution of revenue obligations—Signatures.
Laws and resolutions as contract.
Obligations as lawful securities and investments.
LOCAL IMPROVEMENT GUARANTY FUND
54.24.200
54.24.210
54.24.220
54.24.230
(2004 Ed.)
Local improvement guaranty fund.
Local improvement guaranty fund—Duties of the district.
Local improvement guaranty fund—Warrants to meet liabilities.
Local improvement guaranty fund—Certificates of delinquency—Contents, purchase, payment, issuance, sale.
54.24.012
54.24.240
54.24.250
54.24.260
Local improvement guaranty fund—Certificates of delinquency—Redemption, foreclosure.
Local improvement guaranty fund—Subrogation of district as
trustee of fund, effect on fund, disposition of proceeds.
Local improvement guaranty fund—Rights and remedies of
bond or warrant holder which shall be printed on bond or
warrant—Disposition of balance of fund.
GENERAL PROVISIONS
54.24.010
54.24.010 Treasurer—Bond—Duties—Funds—
Depositaries. The treasurer of the county in which a utility
district is located shall be ex officio treasurer of the district:
PROVIDED, That the commission by resolution may designate some other person having experience in financial or fiscal matters as treasurer of the utility district. The commission
may require a bond, with a surety company authorized to do
business in the state of Washington, in an amount and under
the terms and conditions which the commission by resolution
from time to time finds will protect the district against loss.
The premium on any such bond shall be paid by the district.
All district funds shall be paid to the treasurer and shall
be disbursed by him only on warrants issued by an auditor
appointed by the commission, upon orders or vouchers
approved by it. The treasurer shall establish a public utility
district fund, into which shall be paid all district funds, and he
shall maintain such special funds as may be created by the
commission, into which he shall place all money as the commission may, by resolution, direct.
If the treasurer of the district is the treasurer of the
county all district funds shall be deposited with the county
depositaries under the same restrictions, contracts, and security as provided for county depositaries; if the treasurer of the
district is some other person, all funds shall be deposited in
such bank or banks authorized to do business in this state as
the commission by resolution shall designate, and with surety
bond to the district or securities in lieu thereof of the kind, no
less in amount, as provided in *RCW 36.48.020 for deposit
of county funds.
Such surety bond or securities in lieu thereof shall be
filed or deposited with the treasurer of the district, and
approved by resolution of the commission.
All interest collected on district funds shall belong to the
district and be deposited to its credit in the proper district
funds.
A district may provide and require a reasonable bond of
any other person handling moneys or securities of the district:
PROVIDED, That the district pays the premium thereon.
[1999 c 18 § 6; 1959 c 218 § 2; 1957 c 140 § 1; 1955 c 124 §
7. Prior: (i) 1931 c 1 § 9; RRS § 11613. (ii) 1931 c 1 § 8, part;
RRS § 11612, part.]
*Reviser's note: RCW 36.48.020 was repealed by 1984 c 177 § 21.
54.24.012
54.24.012 Destruction of canceled or paid revenue
obligations and interest coupons. After any revenue obligations or interest coupons have been canceled or paid they
may be destroyed as directed by the district, any provisions of
chapter 40.14 RCW notwithstanding: PROVIDED, That a
certificate of destruction giving full descriptive reference to
the documents destroyed shall be made by the person or persons authorized to perform such destruction and one copy of
[Title 54 RCW—page 23]
54.24.018
Title 54 RCW: Public Utility Districts
the certificate shall be filed with the treasurer of the district.
[1959 c 218 § 15.]
BONDS OR WARRANTS—1931 ACT
54.24.018
54.24.018 Acquisition of property—Adoption of
plan—Bonds or warrants—Special funds. (1) Whenever
the commission shall deem it advisable that the public utility
district purchase, purchase and condemn, acquire, or construct any such public utility, or make any additions or betterments thereto, or extensions thereof, the commission shall
provide therefor by resolution, which shall specify and adopt
the system or plan proposed, and declare the estimated cost
thereof, as near as may be, and specify whether general or
utility indebtedness is to be incurred, the amount of such
indebtedness, the amount of interest and the time in which all
general bonds (if any) shall be paid, not to exceed thirty
years. In the event the proposed general indebtedness to be
incurred will bring the nonvoter approved indebtedness of the
public utility district to an amount exceeding three-fourths of
one percent of the value of the taxable property of the public
utility district, as the term "value of the taxable property" is
defined in RCW 39.36.015, the proposition of incurring such
indebtedness and the proposed plan or system shall be submitted to the qualified electors of said public utility district
for their approval or rejection at the next general election held
in such public utility district. Elections shall be held as provided in RCW 39.36.050.
Whenever the commission (or a majority of the qualified
voters of such public utility district, voting at said election,
when it is necessary to submit the same to said voters) shall
have adopted a system or plan for any such public utility, as
aforesaid, and shall have authorized indebtedness therefor by
a three-fifths vote of the qualified voters of such district, voting at said election, general or public utility bonds may be
used as hereinafter provided. The principal and interest of
such general bonds shall be paid from the revenue of such
public utility district after deducting costs of maintenance,
operation, and expenses of the public utility district, and any
deficit in the payment of principal and interest of said general
bonds shall be paid by levying each year a tax upon the taxable property within said district sufficient to pay said interest and principal of said bonds, which tax shall be due and
collectible as any other tax. Said bonds shall be issued and
sold in accordance with chapter 39.46 RCW.
(2) All bonds and warrants issued under the authority of
this chapter shall be legal securities, which may be used by
any bank or trust company for deposit with the state treasurer,
or any county or city treasurer, as security for deposits, in lieu
of a surety bond, under any law relating to deposits of public
moneys.
(3) When the commission shall not desire to incur a general indebtedness in the purchase, condemnation and purchase, acquisition, or construction of any such public utility,
or addition or betterment thereto, or extension thereof, it shall
have the power to create a special fund or funds for the sole
purpose of defraying the cost of such public utility, or addition or betterment thereto, or extension thereof, into which
special fund or funds it may obligate and bind the district to
set aside and pay a fixed proportion of the gross revenues of
such public utility, or any fixed amount out of, and not
[Title 54 RCW—page 24]
exceeding a fixed proportion of, such revenues, or a fixed
amount without regard to any fixed proportion, and to issue
and sell revenue bonds or warrants bearing interest at such
rate or rates, payable semiannually, executed in such manner,
and payable at such times and places as the commission shall
determine, but such bonds or warrants and the interest
thereon, shall be payable only out of such special fund or
funds. In creating any such special fund or funds, the commission shall have due regard to the cost of operation and
maintenance of the plant or system as constructed or added
to, and to any proportion or part of the revenues previously
pledged as a fund for the payment of bonds or warrants, and
shall not set aside into such special fund or funds a greater
amount or proportion of the revenues and proceeds than, in
its judgment, will be available over and above such cost of
maintenance and operation and the amount or proportion, if
any, of the revenues so previously pledged. Any such bonds
or warrants, and interest thereon, issued against any such
fund, as herein provided, shall be a valid claim of the owner
thereof only as against the said special fund and its fixed proportion or amount of the revenue pledged to such fund, and
shall not constitute an indebtedness of such district within the
meaning of the constitutional provisions and limitations.
Each such bond or warrant shall state on its face that it is payable from a special fund, naming such fund and the resolution
creating it. Said bonds and warrants shall be sold in such
manner as the commission shall deem for the best interests of
the district. The commission may provide in any contract for
the construction and acquisition of a proposed improvement
or utility that payment therefor shall be made only in such
bonds or warrants at the par value thereof. In all other
respects, the issuance of such utility bonds or warrants and
payment therefor shall be governed by the public utility laws
for cities and towns. The revenue or utility bonds or warrants
may be in any form, including bearer bonds or bearer warrants, or registered bonds or registered warrants as provided
in RCW 39.46.030.
(4) Notwithstanding subsection (3) of this section, any of
such revenue bonds and revenue warrants may be issued and
sold in accordance with chapter 39.46 RCW. [1984 c 186 §
45; 1983 c 167 § 146; 1971 c 12 § 1. Prior: 1970 ex.s. c 56 §
77; 1970 ex.s. c 42 § 33; 1969 ex.s. c 232 § 14; 1931 c 1 § 7;
RRS § 11611. Formerly RCW 54.24.130 through 54.24.160.]
Purpose—1984 c 186: See note following RCW 39.46.110.
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Purpose—1970 ex.s. c 56: See note following RCW 39.52.020.
Validation—Saving—Severability—1969 ex.s. c 232: See notes following RCW 39.52.020.
Municipal utilities: Chapter 35.92 RCW.
BONDS—REVENUE OBLIGATIONS—1941 ACT
54.24.020
54.24.020 General obligation bonds, revenue obligations for cost of utilities. Whenever the commission of a
public utility district, organized pursuant to chapter 1 of the
Laws of 1931 (sections 11605 et seq. of Remington's Revised
Statutes) shall deem it advisable that the district purchase,
purchase and condemn, acquire or construct any public utility, or make any additions or betterments thereto or extensions thereof, the commission shall provide therefor by reso(2004 Ed.)
Finances
lution, which shall specify and adopt the system or plan proposed and declare the estimated cost thereof, as near as may
be, including as part of such cost funds necessary for working
capital for the operation of such public utility by the district
and for the payment of the expenses incurred in the acquisition or construction thereof, and shall specify whether general obligation bonds or revenue obligations are to be issued
to defray such cost and the amount of such general obligation
bonds or revenue obligations.
The commissioners may provide in such resolution that
any additional works, plants, or facilities subsequently
acquired or constructed by the district for the same uses,
whether or not physically connected therewith, shall be
deemed additions or betterments to or extensions of such
public utility. [1959 c 218 § 3; 1941 c 182 § 1; Rem. Supp.
1941 § 11611-1.]
Severability—1941 c 182: "If any section or provision of this act shall
be adjudged to be invalid such adjudication shall not affect the validity of the
act as a whole or any section, provision or part thereof not adjudged to be
invalid." [1941 c 182 § 12.]
Revenue obligations defined: RCW 54.04.010.
54.24.030
54.24.030 Revenue obligations—Special fund—
Form, term, payment, etc.—Resolution of authority, contents—Contracts for future sale. (1) Whenever the commission shall deem it advisable to issue revenue obligations
for the purpose of defraying the cost or part of the cost of
such public utility or any additions or betterments thereto or
extensions thereof, it shall have power as a part of such plan
and system to create a special fund or funds for the purpose of
defraying the cost of such public utility, or additions or betterments thereto or extensions thereof, into which special
fund or funds it may obligate and bind the district to set aside
and pay a fixed proportion of the gross revenues of such public utility, and all additions or betterments thereto or extensions thereof, or any fixed amount out of, and not exceeding
a fixed proportion of such revenues, or a fixed amount without regard to any fixed proportion, or an amount of such revenues equal to a fixed percentage of the aggregate principal
amount of revenue obligations at any time issued against the
special fund or funds, and to issue and sell revenue obligations payable as to both principal and interest only out of such
fund or funds.
Such revenue obligations shall bear such date or dates,
mature at such time or times, be in such denominations, be in
such form, either coupon or registered, as provided in RCW
39.46.030, or both, carry such registration privileges, be
made transferable, exchangeable, and interchangeable, be
payable in such medium of payment, at such place or places,
and be subject to such terms of redemption as the commission
shall by resolution determine.
Any resolution or resolutions authorizing the issuance of
any revenue obligations maturing in not exceeding six years
from the date thereof (hereinafter in this section referred to as
"short term obligations") may contain, in addition to all other
provisions authorized by this title, and as an alternate method
for the payment thereof, provisions which shall be a part of
the contract with the holders of the short term obligations
thereby authorized as to:
(a) Refunding the short term obligations at or prior to
maturity and, if so provided, outstanding bonds by the issu(2004 Ed.)
54.24.040
ance of revenue bonds of the district either by the sale of
bonds and application of the proceeds to the payment of the
short term obligations and outstanding bonds or by the
exchange of bonds for the short term obligations;
(b) Satisfying, paying, or discharging the short term obligations at the election of the district by the tender or delivery
of revenue bonds of the district in exchange therefor: PROVIDED, That the aggregate principal amount of bonds shall
not exceed by more than five percent the aggregate principal
amount of the short term obligations, to satisfy, pay, or discharge said short term obligations for which the bonds are
tendered or delivered;
(c) Exchanging or converting the short term obligations
at the election of the owner thereof for or into the bonds of the
district: PROVIDED, That the aggregate principal amount of
the bonds shall not exceed by more than five percent the
aggregate principal amount of the short term obligations to be
exchanged for or converted into bonds;
(d) Pledging bonds of the district as collateral to secure
payment of the short term obligations and providing for the
terms and conditions of the pledge and the manner of enforcing the pledge, which terms and conditions may provide for
the delivery of the bonds in satisfaction of the short term obligations: PROVIDED, That the aggregate principal amount
of the bonds pledged shall not exceed by more than five percent the aggregate principal amount of the short term obligations to secure said short term obligations for which they are
pledged;
(e) Depositing bonds in escrow or in trust with a trustee
or fiscal agent or otherwise providing for the issuance and
disposition of the bonds as security for carrying out any of the
provisions in any resolution adopted pursuant to this section
and providing for the powers and duties of the trustee, fiscal
agent, or other depositary and the terms and conditions upon
which the bonds are to be issued, held and disposed of;
(f) Any other matters of like or different character which
relate to any provision or provisions of any resolution
adopted pursuant to this section.
A district shall have power to make contracts for the
future sale from time to time of revenue obligations by which
the purchasers shall be committed to purchase such revenue
obligations from time to time on the terms and conditions
stated in such contract; and a district shall have power to pay
such consideration as it shall deem proper for such commitments.
(2) Notwithstanding subsection (1) of this section, such
revenue obligations may be issued and sold in accordance
with chapter 39.46 RCW. [1983 c 167 § 147; 1959 c 218 § 4;
1941 c 182 § 2; Rem. Supp. 1941 § 11611-2.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Alternative authority to issue revenue bonds: RCW 39.46.150, 39.46.160.
Funds for reserve purposes may be included in issue amount: RCW
39.44.140.
54.24.040
54.24.040 Considerations in creating special fund—
Status of claims against fund—When lien attaches. In creating any special fund for the payment of revenue obligations, the commission shall have due regard to the cost of
operation and maintenance of the plant or system constructed
or added to, and to any proportion or amount of the revenues
[Title 54 RCW—page 25]
54.24.050
Title 54 RCW: Public Utility Districts
previously pledged as a fund for the payment of revenue obligations, and shall not set aside into such special fund or funds
a greater amount or proportion of the revenues and proceeds
than in its judgment will be available over and above such
cost of maintenance and operation and the amount or proportion, if any, of the revenues so previously pledged. Any such
revenue obligations and interest thereon issued against any
such fund as herein provided shall be a valid claim of the
owner thereof only as against such special fund and the proportion or amount of the revenues pledged to such fund, but
shall constitute a prior charge over all other charges or claims
whatsoever, including the charge or lien of any general obligation bonds against such fund and the proportion or amount
of the revenues pledged thereto. Such revenue obligations
shall not constitute an indebtedness of such district within the
meaning of the constitutional provisions and limitations.
Each revenue obligation shall state on its face that it is payable from a special fund, naming such fund and the resolution
creating it, or shall describe such alternate method for the
payment thereof as shall be provided by the resolution authorizing same.
It is the intention hereof that any pledge of the revenues
or other moneys or obligations made by a district shall be
valid and binding from the time that the pledge is made; that
the revenues or other moneys or obligations so pledged and
thereafter received by a district shall immediately be subject
to the lien of such pledge without any physical delivery or
further act, and that the lien of any such pledge shall be valid
and binding as against any parties having claims of any kind
in tort, contract, or otherwise against a district irrespective of
whether such parties have notice thereof. Neither the resolution or other instrument by which a pledge is created need be
recorded. [1983 c 167 § 148; 1959 c 218 § 5; 1941 c 182 § 5;
Rem. Supp. 1941 § 11611-5.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
54.24.050
54.24.050 Covenants to secure owners of revenue
obligations. Any resolution creating any such special fund
or authorizing the issue of revenue obligations payable therefrom, or by such alternate method of payment as may be provided therein, shall specify the title of such revenue obligations as determined by the commission and may contain covenants by the district to protect and safeguard the security and
the rights of the owners thereof, including covenants as to,
among other things:
(1) The purpose or purposes to which the proceeds of
sale of such obligations may be applied and the use and disposition thereof;
(2) The use and disposition of the gross revenues of the
public utility, and any additions or betterments thereto or
extensions thereof, the cost of which is to be defrayed with
such proceeds, including the creation and maintenance of
funds for working capital to be used in the operation of the
public utility and for renewals and replacements to the public
utility;
(3) The amount, if any, of additional revenue obligations
payable from such fund which may be issued and the terms
and conditions on which such additional revenue obligations
may be issued;
[Title 54 RCW—page 26]
(4) The establishment and maintenance of adequate rates
and charges for electric energy, water, and other services,
facilities, and commodities sold, furnished, or supplied by the
public utility;
(5) The operation, maintenance, management, accounting, and auditing of the public utility;
(6) The terms and prices upon which such revenue obligations or any of them may be redeemed at the election of the
district;
(7) Limitations upon the right to dispose of such public
utility or any part thereof without providing for the payment
of the outstanding revenue obligations; and
(8) The appointment of trustees, depositaries, and paying
agents to receive, hold, disburse, invest, and reinvest all or
any part of the income, revenues, receipts, and profits derived
by the district from the operation, ownership, and management of its public utility. [1983 c 167 § 149; 1959 c 218 § 6;
1945 c 143 § 2; 1941 c 182 § 3; Rem. Supp. 1945 § 11611-3.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
54.24.060
54.24.060 Sale, delivery of revenue obligations. (1)
Such utility revenue obligations shall be sold and delivered in
such manner, at such rate or rates of interest and for such
price or prices and at such time or times as the commission
shall deem for the best interests of the district. The commission may, if it deem it to the best interest of the district, provide in any contract for the construction or acquisition of the
public utility, or the additions or betterments thereto or extensions thereof, that payment therefor shall be made only in
such revenue obligations at the par value thereof.
(2) Notwithstanding subsection (1) of this section, such
obligations may be issued and sold in accordance with chapter 39.46 RCW. [1983 c 167 § 150; 1970 ex.s. c 56 § 78;
1969 ex.s. c 232 § 83; 1959 c 218 § 7; 1941 c 182 § 4; Rem.
Supp. 1941 § 11611-4.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Effective date—Purpose—1970 ex.s. c 56: See notes following RCW
39.44.030.
Validation—Saving—Severability—1969 ex.s. c 232: See notes following RCW 39.44.030.
54.24.070
54.24.070 Prima facie validity of revenue obligations.
The state auditor need not register, certify, nor sign revenue
obligations after July 26, 1981. These obligations shall be
held in every action, suit, or proceeding in which their validity is or may be brought into question prima facie valid and
binding obligations of the districts in accordance with their
terms, notwithstanding any defects or irregularities in the
proceedings for the organization of the district and the election of the commissioners thereof or for the authorization and
issuance of such revenue obligations or in the sale, execution,
or delivery thereof. [1981 c 37 § 1; 1959 c 218 § 8; 1941 c
182 § 6; Rem. Supp. 1941 § 11611-6.]
54.24.080
54.24.080 Rates and charges—Waiver of connection
charges for low-income persons. (1) The commission of
each district which shall have revenue obligations outstanding shall have the power and shall be required to establish,
maintain, and collect rates or charges for electric energy and
(2004 Ed.)
Finances
water and other services, facilities, and commodities sold,
furnished, or supplied by the district. The rates and charges
shall be fair and, except as authorized by RCW 74.38.070 and
by subsections (2) and (3) of this section, nondiscriminatory,
and shall be adequate to provide revenues sufficient for the
payment of the principal of and interest on such revenue obligations for which the payment has not otherwise been provided and all payments which the district is obligated to set
aside in any special fund or funds created for such purpose,
and for the proper operation and maintenance of the public
utility and all necessary repairs, replacements, and renewals
thereof.
(2) The commission of a district may waive connection
charges for properties purchased by low-income persons
from organizations exempt from tax under section 501(c)(3)
of the federal internal revenue code as amended prior to the
July 23, 1995. Waivers of connection charges for the same
class of electric or gas utility service must be uniformly
applied to all qualified property. Nothing in this subsection
(2) authorizes the impairment of a contract.
(3) In establishing rates or charges for water service,
commissioners may in their discretion consider the achievement of water conservation goals and the discouragement of
wasteful water use practices. [1995 c 140 § 3; 1991 c 347 §
21; 1959 c 218 § 9; 1941 c 182 § 7; Rem. Supp. 1941 §
11611-7.]
Purposes—1991 c 347: See note following RCW 90.42.005.
Severability—1991 c 347: See RCW 90.42.900.
54.24.090
54.24.090 Funding, refunding revenue obligations.
Whenever any district shall have outstanding any utility revenue obligations, the commission shall have power by resolution to provide for the issuance of funding or refunding revenue obligations with which to take up and refund such outstanding revenue obligations or any part thereof at the
maturity thereof or before maturity if the same be by their
terms or by other agreement subject to call for prior redemption, with the right in the commission to include various
series and issues of such outstanding revenue obligations in a
single issue of funding or refunding revenue obligations, and
to issue refunding revenue obligations to pay any redemption
premium payable on the outstanding revenue obligations
being funded or refunded. Such funding or refunding revenue
obligations shall be payable only out of a special fund created
out of the gross revenues of such public utility, and shall only
be a valid claim as against such special fund and the amount
of the revenues of such utility pledged to such fund. Such
funding or refunding revenue obligations shall in the discretion of the commission be exchanged at par for the revenue
obligations which are being funded or refunded or shall be
sold in such manner, at such price and at such rate or rates of
interest as the commission shall deem for the best interest of
the district. Said funding or refunding [revenue] obligations
shall except as specifically provided in this section, be issued
in accordance with the provisions with respect to revenue
obligations in chapter 182, Laws of 1941 set forth. [1970
ex.s. c 56 § 79; 1969 ex.s. c 232 § 84; 1959 c 218 § 10; 1941
c 182 § 8; Rem. Supp. 1941 c 11611-8.]
Effective date—Purpose—1970 ex.s. c 56: See notes following RCW
39.44.030.
(2004 Ed.)
54.24.200
Validation—Saving—Severability—1969 ex.s. c 232: See notes following RCW 39.44.030.
54.24.100
54.24.100 Execution of revenue obligations—Signatures. (1) All revenue obligations, including funding and
refunding revenue obligations, shall be executed in such
manner as the commission may determine: PROVIDED,
That warrants may be signed as provided in RCW 54.24.010.
Any interest coupons attached to any revenue obligations
may be executed with facsimile or lithographed signatures, or
otherwise, as the commission may determine.
(2) Notwithstanding subsection (1) of this section, such
obligations may be issued and sold in accordance with chapter 39.46 RCW. [1983 c 167 § 151; 1981 c 37 § 2; 1959 c 218
§ 11; 1941 c 182 § 9; Rem. Supp. 1941 § 11611-9.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Facsimile signatures: RCW 39.44.100 through 39.44.102; chapter 39.62
RCW.
54.24.110
54.24.110 Laws and resolutions as contract. The provisions of chapter 182, Laws of 1941 and the provisions of
chapter 1, Laws of 1931, not hereby superseded, and of any
resolution or resolutions providing for the issuance of any
revenue obligations as herein set forth shall constitute a contract with the holder or holders of such revenue obligations
and the agreements and covenants of the district and its commission under said acts and any such resolution or resolutions
shall be enforceable by any revenue obligation holder by
mandamus or any other appropriate suit or action in any court
of competent jurisdiction. [1959 c 218 § 12; 1941 c 182 § 10;
Rem. Supp. 1941 § 11611-10.]
Mandamus: RCW 7.16.150 through 7.16.280.
54.24.120
54.24.120 Obligations as lawful securities and investments. All bonds, warrants, and revenue obligations issued
under the authority of chapter 1, Laws of 1931 and chapter
182, Laws of 1941 shall be legal securities, which may be
used by any bank or trust company for deposit with the state
treasurer, or any county, city, or town treasurer, as security
for deposits in lieu of a surety bond under any law relating to
deposits of public moneys and shall constitute legal investments for trustees and other fiduciaries other than corporations doing a trust business in this state and for savings and
loan associations, banks, and insurance companies doing
business in this state. All such bonds, warrants, and revenue
obligations and all coupons appertaining thereto shall be
negotiable instruments within the meaning of and for all purposes of the negotiable instruments law of this state. [1959 c
218 § 13; 1941 c 182 § 11; Rem. Supp. 1941 § 11611-11.]
Investment securities: Article 62A.8 RCW.
LOCAL IMPROVEMENT GUARANTY FUND
54.24.200
54.24.200 Local improvement guaranty fund. Every
public utility district in the state is hereby authorized, by resolution, to create a fund for the purpose of guaranteeing, to
the extent of such fund, and in the manner hereinafter provided, the payment of such of its local improvement bonds
and/or warrants as the commission may determine issued to
pay for any local improvement within any local utility district
[Title 54 RCW—page 27]
54.24.210
Title 54 RCW: Public Utility Districts
established within the boundaries of the public utility district.
Such fund shall be designated "local improvement guaranty
fund, public utility district No. . . . .". For the purpose of
maintaining such fund the public utility district shall set aside
and pay into it such proportion as the commissioners may
direct by resolution of the monthly gross revenues of its public utilities for which local improvement bonds and/or warrants have been issued and guaranteed by said fund: PROVIDED, HOWEVER, That any obligation to make payments
into said fund as herein provided shall be junior to any pledge
of said gross revenues for the payment of any outstanding or
future general obligation bonds or revenue bonds of the district. The proportion may be varied from time to time as the
commissioners deem expedient: PROVIDED, FURTHER,
That under the existence of the conditions set forth in subdivisions (1) and (2), hereunder, and when consistent with the
covenants of a public utility district securing its bonds, the
proportion shall be as therein specified, to wit:
(1) When bonds and/or warrants of a local utility district
have been guaranteed and are outstanding and the guaranty
fund does not have a cash balance equal to twenty percent of
all bonds and/or warrants originally guaranteed hereunder,
excluding bonds and/or warrants which have been retired in
full, then twenty percent of the gross monthly revenues from
each public utility for which such bonds and/or warrants have
been issued and are outstanding but not necessarily from
users in other parts of the public utility district as a whole,
shall be set aside and paid into the guaranty fund: PROVIDED, That when, under the requirements of this subdivision, the cash balance accumulates so that it is equal to
twenty percent of the total original guaranteed bonds and/or
warrants, exclusive of any issue of bonds and/or warrants of
a local utility district which issue has been paid and/or
redeemed in full, or equal to the full amount of all bonds
and/or warrants guaranteed, outstanding and unpaid, which
amount might be less than twenty percent of the original total
guaranteed, then no further revenue need be set aside and
paid into the guaranty fund so long as such condition continues;
(2) When warrants issued against the guaranty fund
remain outstanding and uncalled, for lack of funds, for six
months from date of issuance, or when bonds, warrants, or
any coupons or interest payments guaranteed hereunder have
been matured for six months and have not been redeemed,
then twenty percent of the gross monthly revenue, or such
portion thereof as the commissioners determine will be sufficient to retire the warrants or redeem the coupons, interest
payments, bonds and/or warrants in the ensuing six months,
derived from all the users of the public utilities for which
such bonds and/or warrants have been issued and are outstanding in whole or in part, shall be set aside and paid into
the guaranty fund: PROVIDED, That when under the
requirements of this subdivision all warrants, coupons, bonds
and/or warrants specified in this subdivision have been
redeemed and interest payments made, no further income
need be set aside and paid into the guaranty fund under the
requirements of this subdivision unless other warrants remain
outstanding and unpaid for six months or other coupons,
bonds and/or warrants default or interest payments are not
made: PROVIDED, FURTHER, HOWEVER, That no more
than a total of twenty percent of the gross monthly revenue
[Title 54 RCW—page 28]
shall be required to be set aside and paid into the guaranty
fund by these subdivisions (1) and (2). [1983 c 167 § 152;
1957 c 150 § 1.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Local utility districts: RCW 54.16.120.
54.24.210 Local improvement guaranty fund—
Duties of the district. To comply with the requirements of
setting aside and paying into the local improvement guaranty
fund a proportion of the monthly gross revenues of the public
utilities of a district, for which guaranteed local improvement
bonds and/or warrants have been issued and are outstanding,
the district shall bind and obligate itself so long as economically feasible to maintain and operate the utilities and establish, maintain and collect such rates for water and/or electric
energy, as the case may be, as will produce gross revenues
sufficient to maintain and operate the utilities, and make necessary provision for the guaranty fund. The district shall alter
its rates for water and/or electric energy, as the case may be,
from time to time and shall vary them in different portions of
its territory to comply with such requirements. [1957 c 150 §
2.]
54.24.210
54.24.220 Local improvement guaranty fund—Warrants to meet liabilities. When a bond, warrant, or any coupon or interest payment guaranteed by the guaranty fund
matures and there are not sufficient funds in the local utility
district bond redemption fund to pay it, the county treasurer
shall pay it from the local improvement guaranty fund of the
public utility district; if there are not sufficient funds in the
guaranty fund to pay it, it may be paid by issuance and delivery of a warrant upon the local improvement guaranty fund.
When the cash balance in the local improvement guaranty fund is insufficient for the required purposes, warrants
drawing interest at a rate determined by the commission may
be issued by the district auditor, against the fund to meet any
liability accrued against it and shall issue them upon demand
of the owners of any matured coupons, bonds, interest payments, and/or warrants guaranteed hereby, or to pay for any
certificate of delinquency for delinquent installments of
assessments as provided hereinafter. Guaranty fund warrants
shall be a first lien in their order of issuance upon the guaranty fund. [1983 c 167 § 153; 1981 c 156 § 19; 1957 c 150 §
3.]
54.24.220
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
54.24.230 Local improvement guaranty fund—Certificates of delinquency—Contents, purchase, payment,
issuance, sale. Within twenty days after the date of delinquency of any annual installment of assessments levied for
the purpose of paying the local improvement bonds and/or
warrants of a district guaranteed hereunder, the county treasurer shall compile a statement of all installments delinquent
together with the amount of accrued interest and penalty
appurtenant to each installment, and shall forthwith purchase,
for the district, certificates of delinquency for all such delinquent installments. Payment for the certificates shall be made
from the local improvement guaranty fund and if there is not
sufficient money in that fund to pay for the certificates, the
54.24.230
(2004 Ed.)
Privilege Taxes
county treasurer shall accept the local improvement guaranty
fund warrants in payment therefor. All certificates shall be
issued in the name of the local improvement guaranty fund
and all guaranty fund warrants issued in payment therefor
shall be issued in the name of the appropriate local utility district fund. When a market is available and the commissioners
direct, the county treasurer shall sell any certificates belonging to the local improvement guaranty fund, for not less than
face value thereof plus accrued interest from date of issuance
to date of sale.
The certificates shall be issued by the county treasurer,
shall bear interest at the rate of ten percent per year, shall
each be for the face value of the delinquent installment, plus
accrued interest to date of issuance, plus a penalty of five percent of the face value, and shall set forth the:
(1) Description of property assessed;
(2) Date the installment of assessment became delinquent; and
(3) Name of the owner or reputed owner, if known.
[1957 c 150 § 4.]
54.24.240
54.24.240 Local improvement guaranty fund—Certificates of delinquency—Redemption, foreclosure. The
certificates of delinquency may be redeemed by the owner of
the property assessed at any time up to two years from the
date of foreclosure of the certificate.
If a certificate is not redeemed on the second occurring
first day of January, after its issuance, the county treasurer
shall foreclose the certificate in the manner specified for the
foreclosure of the lien of local improvement assessments in
cities, and if no redemption is made within the succeeding
two years, from date of the decree of foreclosure, shall execute and deliver unto the public utility district, as trustee for
the fund, a deed conveying fee simple title to the property
described in the foreclosed certificate. [1957 c 150 § 5.]
54.24.250
54.24.250 Local improvement guaranty fund—Subrogation of district as trustee of fund, effect on fund, disposition of proceeds. When there is paid out of a guaranty
fund any sum on the principal or interest upon local improvement bonds, and/or warrants, or on the purchase of certificates of delinquency, the public utility district, as trustee, for
the fund, shall be subrogated to all rights of the owner of the
bonds, and/or warrants, any interest coupons, or delinquent
assessment installments so paid; and the proceeds thereof, or
of the assessment underlying them, shall become a part of the
guaranty fund. There shall also be paid into the guaranty fund
the interest received from the bank deposits of the fund, as
well as any surplus remaining in the local utility district funds
guaranteed hereunder, after the payment of all outstanding
bonds and/or warrants payable primarily out of such local
utility district funds. As among the several issues of bonds
and/or warrants guaranteed by the fund, no preference shall
exist, but defaulted interest coupons and bonds and/or warrants shall be purchased out of the fund in the order of their
presentation.
The commissioners shall prescribe, by resolution, appropriate rules for the guaranty fund consistent herewith. So
much of the money of a guaranty fund as is necessary and not
required for other purposes hereunder may be used to pur(2004 Ed.)
Chapter 54.28
chase property at county tax foreclosure sales or from the
county after foreclosure in cases where the property is subject
to unpaid local improvement assessments securing bonds
and/or warrants guaranteed hereunder and such purchase is
deemed necessary for the purpose of protecting the guaranty
fund. In such cases the funds shall be subrogated to all rights
of the district. After so acquiring title to real property, the district may lease or resell and convey it in the same manner that
county property may be leased or resold and for such prices
and on such terms as may be determined by resolution of the
commissioners. All proceeds resulting from such resales
shall belong to and be paid into the guaranty fund. [1983 c
167 § 154; 1957 c 150 § 6.]
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
54.24.260 Local improvement guaranty fund—
Rights and remedies of bond or warrant holder which
shall be printed on bond or warrant—Disposition of balance of fund. Neither the holder nor the owner of local
improvement bonds and/or warrants guaranteed hereunder
shall have a claim therefor against the public utility district,
except for payment from the special assessment made for the
improvement for which the bonds and/or warrants were
issued, and except as against the guaranty fund. The district
shall not be liable to any holder or owner of such local
improvement bonds and/or warrants for any loss to the guaranty fund occurring in the lawful operation thereof by the district. The remedy of the holder of a local improvement bond
and/or warrant shall be confined to the enforcement of the
assessment and to the guaranty fund. A copy of the foregoing
part of this section shall be plainly written, printed, or
engraved on each local improvement bond and/or warrant
guaranteed hereby. The establishment of a guaranty fund
shall not be deemed at variance from any comprehensive plan
heretofore adopted by a district.
If a guaranty fund at any time has balance therein in
cash, and the obligations guaranteed thereby have all been
paid off, the balance may be transferred to such other fund of
the district as the commissioners shall, by resolution, direct.
[1957 c 150 § 7.]
54.24.260
Chapter 54.28
Chapter 54.28 RCW
PRIVILEGE TAXES
Sections
54.28.010
54.28.011
54.28.020
54.28.025
54.28.030
54.28.040
54.28.050
54.28.055
54.28.060
54.28.070
54.28.080
54.28.090
54.28.100
54.28.110
54.28.120
Definitions.
"Gross revenue" defined.
Tax imposed—Rates—Additional tax imposed.
Tax imposed with respect to thermal electric generating facilities—Rate—Additional tax imposed.
Districts' report to department of revenue.
Tax computed—Payment—Penalties—Disposition.
Distribution of tax.
Distribution of tax proceeds from thermal electric generating
facilities.
Interest.
Municipal taxes—May be passed on.
Additional tax for payment on bonded indebtedness of school
districts.
Deposit of funds to credit of certain taxing districts.
Use of moneys received by taxing district.
Voluntary payments by district to taxing entity for removal of
property from tax rolls.
Amount of tax if district acquires electric utility property from
public service company.
[Title 54 RCW—page 29]
54.28.010
Title 54 RCW: Public Utility Districts
Special benefit assessments—Property taxes—Exemptions: RCW 84.34.300
through 84.34.380.
54.28.010
54.28.010 Definitions. As used in this chapter:
(1) "Operating property" means all of the property utilized by a public utility district in the operation of a plant or
system for the generation, transmission, or distribution of
electric energy for sale;
(2) "Taxing districts" means counties, cities, towns,
school districts, and road districts;
(3) "Distributes to consumers" means the sale of electric
energy to ultimate consumers thereof, and does not include
sales of electric energy for resale by the purchaser;
(4) "Wholesale value" means all costs of a public utility
district associated with the generation and transmission of
energy from its own generation and transmission system to
the point or points of inter-connection with a distribution system owned and used by a district to distribute such energy to
consumers, or in the event a distribution system owned by a
district is not used to distribute such energy, then the term
means the gross revenues derived by a district from the sale
of such energy to consumers;
(5) "Thermal electric generating facility" means a steampowered electrical energy producing facility utilizing nuclear
or fossil fuels;
(6) "Placed in operation" means delivery of energy into a
transmission or distribution system for use or sale in such a
manner as to establish a value accruing to the power plant
operator, except operation incidental to testing or startup
adjustments;
(7) "Impacted area" for a thermal electric generating
facility on a federal reservation means that area in the state
lying within thirty-five statute miles of the most commonly
used entrance of the federal reservation and which is south of
the southern boundary of township fifteen north. [1977 ex.s.
c 366 § 1; 1967 ex.s. c 26 § 22; 1959 c 274 § 1; 1957 c 278 §
7. Prior: (i) 1941 c 245 § 1, part; Rem. Supp. 1941 § 116161, part. (ii) 1949 c 227 § 1(f); Rem. Supp. 1949 § 11616-2(f).]
Effective date—1967 ex.s. c 26: See note following RCW 82.01.050.
54.28.011
54.28.011 "Gross revenue" defined. "Gross revenue"
shall mean the amount received from the sale of electric
energy excluding any tax levied by a municipal corporation
upon the district pursuant to RCW 54.28.070. [1957 c 278 §
12.]
54.28.020
54.28.020 Tax imposed—Rates—Additional tax
imposed. (1) There is hereby levied and there shall be collected from every district a tax for the act or privilege of
engaging within this state in the business of operating works,
plants or facilities for the generation, distribution and sale of
electric energy. With respect to each such district, except
with respect to thermal electric generating facilities taxed
under RCW 54.28.025, such tax shall be the sum of the following amounts: (a) Two percent of the gross revenues
derived by the district from the sale of all electric energy
which it distributes to consumers who are served by a distribution system owned by the district; (b) five percent of the
first four mills per kilowatt-hour of wholesale value of selfgenerated energy distributed to consumers by a district; (c)
five percent of the first four mills per kilowatt-hour of reve[Title 54 RCW—page 30]
nue obtained by the district from the sale of self-generated
energy for resale.
(2) An additional tax is imposed equal to the rate specified in RCW 82.02.030 multiplied by the tax payable under
subsection (1) of this section. [1983 2nd ex.s. c 3 § 8; 1982
1st ex.s. c 35 § 18; 1977 ex.s. c 366 § 2; 1959 c 274 § 2; 1957
c 278 § 2. Prior: 1949 c 227 § 1(a); 1947 c 259 § 1(a); 1941
c 245 § 2(a); Rem. Supp. 1949 § 11616-2(a).]
Construction—Severability—Effective dates—1983 2nd ex.s. c 3:
See notes following RCW 82.04.255.
Severability—Effective dates—1982 1st ex.s. c 35: See notes following RCW 82.08.020.
Severability—1947 c 259: "If any section, subsection, clause, sentence
or phrase of this act be for any reason adjudged unconstitutional, such adjudication shall not invalidate the remaining portions of this act, and the legislature hereby declares that it would have enacted this act notwithstanding the
omission of the portion so adjudicated invalid." [1947 c 259 § 2.]
54.28.025
54.28.025 Tax imposed with respect to thermal electric generating facilities—Rate—Additional tax imposed.
(1) There is hereby levied and there shall be collected from
every district operating a thermal electric generating facility,
as defined in RCW 54.28.010 as now or hereafter amended,
having a design capacity of two hundred fifty thousand kilowatts or more, located on a federal reservation, which is
placed in operation after September 21, 1977, a tax for the act
or privilege of engaging within the state in the business of
generating electricity for use or sale, equal to one and onehalf percent of wholesale value of energy produced for use or
sale, except energy used in the operation of component parts
of the power plant and associated transmission facilities
under control of the person operating the power plant.
(2) An additional tax is imposed equal to the rate specified in RCW 82.02.030 multiplied by the tax payable under
subsection (1) of this section. [1983 2nd ex.s. c 3 § 9; 1982
1st ex.s. c 35 § 19; 1977 ex.s. c 366 § 6.]
Construction—Severability—Effective dates—1983 2nd ex.s. c 3:
See notes following RCW 82.04.255.
Severability—Effective dates—1982 1st ex.s. c 35: See notes following RCW 82.08.020.
54.28.030
54.28.030 Districts' report to department of revenue.
On or before the fifteenth day of March of each year, each
district subject to this tax shall file with the department of
revenue a report verified by the affidavit of its manager or
secretary on forms prescribed by the department of revenue.
Such report shall state (1) the gross revenues derived by the
district from the sale of all distributed energy to consumers
and the respective amounts derived from such sales within
each county; (2) the gross revenues derived by the district
from the sale of self-generated energy for resale; (3) the
amount of all generated energy distributed from each of the
facilities subject to taxation by a district from its own generating facilities, the wholesale value thereof, and the basis on
which the value is computed; (4) the total cost of all generating facilities and the cost of acquisition of land and land
rights for such facilities or for reservoir purposes in each
county; and (5) such other and further information as the
department of revenue reasonably may require in order to
administer the provisions of this chapter. In case of failure by
a district to file such report, the department may proceed to
determine the information, which determination shall be con(2004 Ed.)
Privilege Taxes
testable by the district only for actual fraud. [1977 ex.s. c 366
§ 3; 1975 1st ex.s. c 278 § 30; 1959 c 274 § 3; 1957 c 278 §
3. Prior: 1949 c 227 § 1(b); 1947 c 259 § 1(b); 1941 c 245 §
2(b); Rem. Supp. 1949 § 11616-2(b).]
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.
54.28.040
54.28.040 Tax computed—Payment—Penalties—
Disposition. (1) Before May 1st, the department of revenue
shall compute the tax imposed by this chapter for the last preceding calendar year and notify the district of the amount
thereof, which shall be payable on or before the following
June 1st.
(2) If payment of any tax is not received by the department on or before the due date, there shall be assessed a penalty of five percent of the amount of the tax; if the tax is not
received within one month of the due date, there shall be
assessed a total penalty of ten percent of the amount of the
tax; and if the tax is not received within two months of the
due date, there shall be assessed a total penalty of twenty percent of the amount of the tax.
(3) Upon receipt of the amount of each tax imposed the
department of revenue shall deposit the same with the state
treasurer, who shall deposit four percent of the revenues
received under RCW 54.28.020(1) and 54.28.025(1) and all
revenues received under RCW 54.28.020(2) and
54.28.025(2) in the general fund of the state and shall distribute the remainder in the manner hereinafter set forth. The
state treasurer shall send a duplicate copy of each transmittal
to the department of revenue. [1996 c 149 § 16; 1982 1st
ex.s. c 35 § 20; 1975 1st ex.s. c 278 § 31; 1957 c 278 § 4.
Prior: 1949 c 227 § 1(c); 1947 c 259 § 1(c); 1941 c 245 §
2(c); Rem. Supp. 1949 § 11616-2(c).]
Findings—Intent—Effective date—1996 c 149: See notes following
RCW 82.32.050.
Severability—Effective dates—1982 1st ex.s. c 35: See notes following RCW 82.08.020.
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.
54.28.050
54.28.050 Distribution of tax. After computing the tax
imposed by RCW 54.28.020(1), the department of revenue
shall instruct the state treasurer, after placing thirty-seven and
six-tenths percent in the state general fund to be dedicated for
the benefit of the public schools, to distribute the balance collected under RCW 54.28.020(1)(a) to each county in proportion to the gross revenue from sales made within each county;
and to distribute the balance collected under RCW
54.28.020(1) (b) and (c) as follows: If the entire generating
facility, including reservoir, if any, is in a single county then
all of the balance to the county where such generating facility
is located. If any reservoir is in more than one county, then to
each county in which the reservoir or any portion thereof is
located a percentage equal to the percentage determined by
dividing the total cost of the generating facilities, including
adjacent switching facilities, into twice the cost of land and
land rights acquired for any reservoir within each county,
land and land rights to be defined the same as used by the federal power commission. If the powerhouse and dam, if any, in
connection with such reservoir are in more than one county,
the balance shall be divided sixty percent to the county in
(2004 Ed.)
54.28.055
which the owning district is located and forty percent to the
other county or counties or if said powerhouse and dam, if
any, are owned by a joint operating agency organized under
chapter 43.52 RCW, or by more than one district or are outside the county of the owning district, then to be divided
equally between the counties in which such facilities are
located. If all of the powerhouse and dam, if any, are in one
county, then the balance shall be distributed to the county in
which the facilities are located.
The provisions of this section shall not apply to the distribution of taxes collected under RCW 54.28.025. [1982 1st
ex.s. c 35 § 21; 1980 c 154 § 8; 1977 ex.s. c 366 § 4; 1975 1st
ex.s. c 278 § 32; 1959 c 274 § 4; 1957 c 278 § 5. Prior: 1949
c 227 § 1(d); 1947 c 259 § 1(d); 1941 c 245 § 2(d); Rem.
Supp. 1949 § 11616-2(d).]
Severability—Effective dates—1982 1st ex.s. c 35: See notes following RCW 82.08.020.
Purpose—Effective dates—Savings—Disposition of certain funds—
Severability—1980 c 154: See notes following chapter 82.45 RCW digest.
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.
Effective date—1959 c 274: "The effective date of section 4 of this
1959 amendatory act shall be January 1, 1960." [1959 c 274 § 6.]
54.28.055
54.28.055 Distribution of tax proceeds from thermal
electric generating facilities. (1) After computing the tax
imposed by RCW 54.28.025(1), the department of revenue
shall instruct the state treasurer to distribute the amount collected as follows:
(a) Fifty percent to the state general fund for the support
of schools; and
(b) Twenty-two percent to the counties, twenty-three
percent to the cities, three percent to the fire protection districts, and two percent to the library districts.
(2) Each county, city, fire protection district and library
district shall receive a percentage of the amount for distribution to counties, cities, fire protection districts and library districts, respectively, in the proportion that the population of
such district residing within the impacted area bears to the
total population of all such districts residing within the
impacted area. For the purposes of this chapter, the term
"library district" includes only regional libraries as defined in
RCW 27.12.010(4), rural county library districts as defined in
RCW 27.12.010(5), intercounty rural library districts as
defined in RCW 27.12.010(6), and island library districts as
defined in RCW 27.12.010(7). The population of a library
district, for purposes of such a distribution, shall not include
any population within the library district and the impact area
that also is located within a city or town.
(3) If any distribution pursuant to subsection (1)(b) of
this section cannot be made, then that share shall be prorated
among the state and remaining local districts.
(4) All distributions directed by this section to be made
on the basis of population shall be calculated in accordance
with data to be provided by the office of financial management. [1986 c 189 § 1; 1982 1st ex.s. c 35 § 22; 1979 c 151 §
165; 1977 ex.s. c 366 § 7.]
Severability—Effective dates—1982 1st ex.s. c 35: See notes following RCW 82.08.020.
[Title 54 RCW—page 31]
54.28.060
Title 54 RCW: Public Utility Districts
54.28.060
54.28.060 Interest. Interest at the rate as computed
under RCW 82.32.050(2) shall be added to the tax hereby
imposed from the due date until the date of payment. The tax
shall constitute a debt to the state and may be collected as
such. [1996 c 149 § 12; 1957 c 278 § 6. Prior: 1949 c 227 §
1(e); 1947 c 259 § 1(e); 1941 c 245 § 2(e); Rem. Supp. 1949
§ 11616-2(e).]
Findings—Intent—Effective date—1996 c 149: See notes following
RCW 82.32.050.
54.28.070
54.28.070 Municipal taxes—May be passed on. Any
city or town in which a public utility district operates works,
plants or facilities for the distribution and sale of electricity
shall have the power to levy and collect from such district a
tax on the gross revenues derived by such district from the
sale of electricity within the city or town, exclusive of the
revenues derived from the sale of electricity for purposes of
resale. Such tax when levied shall be a debt of the district, and
may be collected as such. Any such district shall have the
power to add the amount of such tax to the rates or charges it
makes for electricity so sold within the limits of such city or
town. [1941 c 245 § 3; Rem. Supp. 1941 § 11616-3.]
54.28.080
54.28.080 Additional tax for payment on bonded
indebtedness of school districts. Whenever any district
acquires an operating property from any private person, firm,
or corporation and a portion of the operating property is situated within the boundaries of any school district and at the
time of such acquisition there is an outstanding bonded
indebtedness of the school district, then the public utility district shall, in addition to the tax imposed by this chapter, pay
directly to the school district a proportion of all subsequent
payments by the school district of principal and interest on
said bonded indebtedness, said additional payments to be
computed and paid as follows: The amount of principal and
interest required to be paid by the school district shall be multiplied by the percentage which the assessed value of the
property acquired bore to the assessed value of the total property in the school district at the time of such acquisition. Such
additional amounts shall be paid by the public utility district
to the school district not less than fifteen days prior to the date
that such principal and interest payments are required to be
paid by the school district. In addition, any public utility district which acquires from any private person, firm, or corporation an operating property situated within a school district,
is authorized to make voluntary payments to such school district for the use and benefit of the school district. [1957 c 278
§ 8. Prior: 1949 c 227 § 1(g); 1941 c 245 § 2; Rem. Supp.
1949 § 11616-2(g).]
54.28.090
54.28.090 Deposit of funds to credit of certain taxing
districts. The county legislative authority of each county
shall direct the county treasurer to deposit funds to the credit
of each taxing district in the county, other than school districts, according to the manner they deem most equitable;
except not less than an amount equal to three-fourths of one
percent of the gross revenues obtained by a district from the
sale of electric energy within any incorporated city or town
shall be remitted to such city or town. Information furnished
by the district to the county legislative authority shall be the
[Title 54 RCW—page 32]
basis for the determination of the amount to be paid to such
cities or towns.
The provisions of this section shall not apply to the distribution of taxes collected under RCW 54.28.025. [1980 c
154 § 9; 1977 ex.s. c 366 § 5; 1957 c 278 § 10.]
Purpose—Effective dates—Savings—Disposition of certain funds—
Severability—1980 c 154: See notes following chapter 82.45 RCW digest.
54.28.100
54.28.100 Use of moneys received by taxing district.
All moneys received by any taxing district shall be used for
purposes for which state taxes may be used under the provisions of the state constitution. [1957 c 278 § 11.]
Revenue and taxation: State Constitution Art. 7.
54.28.110
54.28.110 Voluntary payments by district to taxing
entity for removal of property from tax rolls. Whenever,
hereafter, property is removed from the tax rolls as a result of
the acquisition of operating property or the construction of a
generating plant by a public utility district, such public utility
district may make voluntary payments to any municipal corporation or other entity authorized to levy and collect taxes in
an amount not to exceed the amount of tax revenues being
received by such municipal corporation or other entity at the
time of said acquisition or said construction and which are
lost by such municipal corporation or other entity as a result
of the acquisition of operating property or the construction of
a generating plant by the public utility district: PROVIDED,
That this section shall not apply to taxing districts as defined
in RCW 54.28.010, and: PROVIDED FURTHER, That in
the event any operating property so removed from the tax
rolls is dismantled or partially dismantled the payment which
may be paid hereunder shall be correspondingly reduced.
[1957 c 278 § 13.]
54.28.120
54.28.120 Amount of tax if district acquires electric
utility property from public service company. In the event
any district hereafter purchases or otherwise acquires electric
utility properties comprising all or a portion of an electric
generation and/or distribution system from a public service
company, as defined in RCW 80.04.010, the total amount of
privilege taxes imposed under chapter 278, Laws of 1957 to
be paid by the district annually on the combined operating
property within each county where such utility property is
located, irrespective of any other basis of levy contained in
this chapter, will be not less than the combined total of the ad
valorem taxes, based on regular levies, last levied against the
electric utility property constituting the system so purchased
or acquired plus the taxes paid by the district for the same
year on the revenues of other operating property in the same
county under terms of this chapter. If all or any portion of the
property so acquired is subsequently sold, or if rates charged
to purchasers of electric energy are reduced, the amount of
privilege tax required under this section shall be proportionately reduced. [1957 c 278 § 14.]
Chapter 54.32
Chapter 54.32 RCW
CONSOLIDATION AND ANNEXATION
Sections
54.32.001
Actions subject to review by boundary review board.
(2004 Ed.)
Liability to Other Taxing Districts
54.32.010
54.32.040
Consolidation of districts—Property taxed—Boundaries
enlarged.
Right of county-wide utility district to acquire distribution
properties.
Annexation of territory: RCW 54.04.035.
54.32.001 Actions subject to review by boundary
review board. Actions taken under chapter 54.32 RCW may
be subject to potential review by a boundary review board
under chapter 36.93 RCW. [1989 c 84 § 49.]
54.32.001
54.32.010 Consolidation of districts—Property
taxed—Boundaries enlarged. Two or more contiguous
public utility districts may become consolidated into one
public utility district after proceedings had as required by
*sections 8909, 8910 and 8911, of Remington's Compiled
Statutes of Washington, PROVIDED, That a ten percent petition shall be sufficient; and public utility districts shall be
held to be municipal corporations within the meaning of said
sections, and the commission shall be held to be the legislative body of the public utility district as the term legislative
body is used in said sections: PROVIDED, That any such
consolidation shall in nowise affect or impair the title to any
property owned or held by any such public utility district, or
in trust therefor, or any debts, demands, liabilities or obligations existing in favor of or against either of the districts so
consolidated, or any proceeding then pending: PROVIDED,
FURTHER, That no property within either of the former public utility districts shall ever be taxed to pay any of the indebtedness of either of the other such former districts.
The boundaries of any public utility district may be
enlarged and new territory included therein, after proceedings had as required by **section 8894 of Remington's Compiled Statutes of Washington: PROVIDED, That a ten percent petition shall be sufficient; and public utility districts
shall be held to be municipal corporations within the meaning
of said section, and the commission shall be held to be the
legislative body of the public utility district: PROVIDED,
That no property within such territory so annexed shall ever
be taxed to pay any portion of any indebtedness of such public utility district contracted prior to or existing at the date of
such annexation.
In all cases wherein public utility districts of less area
than an entire county desire to be consolidated with a public
utility district including an entire county, and in all cases
wherein it is desired to enlarge a public utility district including an entire county, by annexing a lesser area than an entire
county, no election shall be required to be held in the district
including an entire county. [1931 c 1 § 10; RRS § 11614.
Formerly RCW 54.32.010 through 54.32.030.]
54.32.010
54.36.030
distribution properties in the county from any other public
utility district or combination of public utility districts for a
period of five years from the time of organization of said public utility district. [1951 c 272 § 2.]
Acquisition of electrical distribution property from public utility district by
cities and towns: RCW 35.92.054.
Chapter 54.36 RCW
LIABILITY TO OTHER TAXING DISTRICTS
Chapter 54.36
Sections
54.36.010
54.36.020
54.36.030
54.36.040
54.36.050
54.36.060
54.36.070
54.36.080
Definitions.
Increased financial burden on school district—Determination
of number of construction pupils.
Compensation of school district for construction pupils—
Computation.
Compensation of school district for construction pupils—
Amount to be paid.
Compensation of school district for construction pupils—How
paid when more than one project in the same school district.
Power to make voluntary payments to school district for capital construction.
Increased financial burden on county or other taxing district—
Power to make payments.
Funds received by school district—Equalization apportionment.
54.36.010
54.36.010 Definitions. As used in this chapter:
"Public utility district" means public utility district or
districts or a joint operating agency or agencies.
"Construction project" means the construction of generating facilities by a public utility district. It includes the relocation of highways and railroads, by whomever done, to the
extent that it is occasioned by the overflowing of their former
locations, or by destruction or burying incident to the construction.
"Base-year enrollment" means the number of pupils
enrolled in a school district on the first of May next preceding
the date construction was commenced.
"Subsequent-year enrollment" means the number of
pupils enrolled in a school district on any first of May after
construction was commenced.
"Construction pupils" means pupils who have a parent
who is a full time employee on the construction project and
who moved into the school district subsequent to the first day
of May next preceding the day the construction was commenced.
"Nonconstruction pupils" means other pupils. [1975 1st
ex.s. c 10 § 1; 1973 1st ex.s. c 154 § 99; 1957 c 137 § 1.]
Severability—1973 1st ex.s. c 154: See note following RCW 2.12.030.
Operating agencies: Chapter 43.52 RCW.
54.36.020
Reviser's note: *(1) Rem. Comp. Stat. §§8909, 8910, and 8911 relating
to the consolidation of municipal corporations had been repealed and reenacted by 1929 c 64 at the time the above section was enacted. 1929 c 64 was
compiled as RRS § 8909-1 through 8909-12; see chapter 35.10 RCW.
**(2) Rem. Comp. Stat. §8894 became chapter 35.12 RCW. RCW
35.12.010, the only section in that chapter, was repealed by 1969 ex.s. c 89 §
18.
54.32.040 Right of county-wide utility district to
acquire distribution properties. Upon the formation of a
county-wide public utility district in any county such district
shall have the right, in addition to any other right provided by
law, to acquire by purchase or condemnation any electrical
54.32.040
(2004 Ed.)
54.36.020 Increased financial burden on school district—Determination of number of construction pupils.
When as the result of a public utility district construction
project a school district considers it is suffering an increased
financial burden in any year during the construction project,
it shall determine the number of construction pupils enrolled
in the school district on the first of May of such year. [1957
c 137 § 2.]
54.36.030
54.36.030 Compensation of school district for construction pupils—Computation. If the subsequent-year
enrollment exceeds one hundred and three percent of the
[Title 54 RCW—page 33]
54.36.040
Title 54 RCW: Public Utility Districts
base-year enrollment, the public utility district shall compensate the school district for a number of construction pupils
computed as follows:
(1) If the subsequent-year enrollment of nonconstruction
pupils is less than the base-year enrollment, compensation
shall be paid for the total number of all pupils minus one hundred and three percent of the base-year enrollment.
(2) If the subsequent-year enrollment of nonconstruction
pupils is not less than the base-year enrollment, compensation shall be paid for the total number of construction pupils
minus three percent of the base-year enrollment. [1957 c 137
§ 3.]
54.36.040
54.36.040 Compensation of school district for construction pupils—Amount to be paid. The compensation
to be paid per construction pupils as computed in RCW
54.36.030 shall be one-third of the average per-pupil cost of
the local school district, for the school year then current.
[1957 c 137 § 4.]
54.36.050
54.36.050 Compensation of school district for construction pupils—How paid when more than one project
in the same school district. If more than one public utility
district or joint operating agency is carrying on a construction
project in the same school district, the number of construction
pupils for whom the school district is to receive compensation shall be computed as if the projects were constructed by
a single agency. The public utility districts or joint operating
agencies involved shall divide the cost of such compensation
between themselves in proportion to the number of construction pupils occasioned by the operations of each. [1957 c 137
§ 5.]
54.36.060
54.36.060 Power to make voluntary payments to
school district for capital construction. Public utility districts are hereby authorized to make voluntary payments to a
school district for capital construction if their construction
projects cause an increased financial burden for such purpose
on the school district. [1957 c 137 § 6.]
PROVIDED, That the provisions of such statutes herein repealed insofar as
they are expressly or impliedly adopted by reference or otherwise referred to
in or for the benefit of any other statutes, are hereby preserved for such purposes."
Chapter 54.40
Chapter 54.40 RCW
FIVE COMMISSIONER DISTRICTS
(Formerly: First class districts)
Sections
54.40.010
54.40.020
54.40.030
54.40.040
54.40.050
54.40.060
54.40.070
Five commissioner districts—Requirements.
Existing districts—Qualifications—Voters' approval.
Transmittal of copies of federal hydroelectric license to county
auditor.
Criteria, election to reclassify as a five commissioner district—Ballot form—Vote required.
Petition for reclassification—Certificate of sufficiency—Election.
Division of district.
Special election for commissioners from districts—Terms.
54.40.010
54.40.010 Five commissioner districts—Requirements. A five commissioner public utility district is a district
that (1) either: (a) Has or had a license from the federal
power commission to construct a hydroelectric project of an
estimated cost of more than two hundred and fifty million
dollars, including interest during construction; or (b) has a
population of five hundred thousand or more; and (2) voters
of the district approved a ballot proposition authorizing the
district to become a five commissioner district as provided
under RCW 54.40.040. All other public utility districts shall
be known as three commissioner districts. [1994 c 223 § 57;
1977 ex.s. c 36 § 1; 1959 c 265 § 2.]
54.40.020
54.40.020 Existing districts—Qualifications—Voters' approval. Every public utility district which on September 21, 1977, shall be in existence and have such a license
shall be qualified to become a five commissioner district
upon approval of the voters of said district, and every public
utility district which on September 21, 1977, shall have
become a first class district as previously provided by chapter
265, Laws of 1959 shall be a five commissioner district.
[1977 ex.s. c 36 § 2; 1959 c 265 § 3.]
54.36.070
54.36.070 Increased financial burden on county or
other taxing district—Power to make payments. Public
utilities are hereby authorized to make payments to a county
or other taxing district in existence before the commencement of construction on the construction project which suffers an increased financial burden because of their construction projects, but such amount shall not be more than the
amount by which the property taxes levied against the contractors engaged in the work on the construction project
failed to meet said increased financial burden. [1957 c 137 §
7.]
54.36.080
54.36.080 Funds received by school district—Equalization apportionment. The funds paid by a public utility
district to a school district under the provisions of this chapter
shall not be considered a school district receipt by the superintendent of public instruction in determining equalization
apportionments under *RCW 28.41.080. [1957 c 137 § 8.]
*Reviser's note: RCW 28.41.080 was repealed by 1965 ex.s. c 154 §
12; as a part thereof said section concludes with the following proviso ". . .
[Title 54 RCW—page 34]
54.40.030
54.40.030 Transmittal of copies of federal hydroelectric license to county auditor. Within five days after a public utility district shall receive a license from the federal
power commission to construct a hydroelectric project of an
estimated cost of more than two hundred and fifty million
dollars, including interest during construction, or, in the case
of a district which on September 21, 1977, is in existence and
has such a license within five days of September 21, 1977,
the district shall forward a true copy of said license, certified
by the secretary of the district, to the county auditor of the
county wherein said district is located. [1977 ex.s. c 36 § 3;
1959 c 265 § 4.]
54.40.040
54.40.040 Criteria, election to reclassify as a five
commissioner district—Ballot form—Vote required. A
public utility district that has or had a license from the federal
power commission to construct a hydroelectric project of an
estimated cost of more than two hundred fifty million dollars,
including interest during construction, or has a population of
(2004 Ed.)
Nuclear, Thermal, Electric Generating Power Facilities—Joint Development
five hundred thousand or more, shall be classified as a five
commissioner district if voters of the district approve a ballot
proposition authorizing the change. In submitting the question to the voters for their approval or rejection, the proposition shall be expressed on the ballot in substantially the following terms:
Shall Public Utility District No. . . . . be
reclassified a Five Commissioner District for the purpose of increasing the
number of commissioners to five . . . .
YES '
NO '
54.40.050
54.40.050 Petition for reclassification—Certificate of
sufficiency—Election. The question of reclassification of a
public utility district that has or had a license from the federal
power commission to construct a hydroelectric project of an
estimated cost of more than two hundred fifty million dollars,
including interest during construction, or has a population of
five hundred thousand or more, as a five commissioner public
utility district shall be submitted to the voters if a petition
proposing the change is filed with the county auditor of the
county in which the district is located, identifying the district
by number and praying that an election be held to determine
whether it shall become a five commissioner district. The
petition must be signed by a number of registered voters of
the district equal to at least ten percent of the number of registered voters in the district who voted at the last general election and include each signer's residence address.
The petition shall be filed with the county auditor for
verification of the validity of the signatures. Within thirty
days after receipt of the petition, the county auditor shall
determine the sufficiency of the petition. If the petition is
found insufficient, the person who filed the same shall be
notified by mail and he shall have an additional fifteen days
from the date of mailing such notice within which to submit
additional signatures, and the county auditor shall have an
additional thirty days after the submission of such additional
signatures to determine the validity of the entire petition. No
signature may be withdrawn after the petition has been filed.
If the petition, including these additional signatures if
any, is found sufficient, the county auditor shall certify its
sufficiency to the public utility district and if the commissioners of the public utility district had certified to the county
auditor the eligibility of the district for reclassification as provided in this chapter, the county auditor shall submit to the
voters of the district the question of whether the district shall
become a five commissioner district. The election shall be
held at the next state general election occurring sixty or more
days after the petition was certified as having sufficient valid
signatures. [1994 c 223 § 59; 1977 ex.s. c 36 § 5; 1959 c 265
§ 6.]
54.40.060 Division of district. If the reclassification to
a five commissioner district is approved by the voters, the
(2004 Ed.)
public utility district commission within sixty days after the
results of said election are certified shall divide the public
utility district into two districts of as nearly equal population
as possible, and shall designate the districts as District A and
District B. [1994 c 223 § 60; 1977 ex.s. c 36 § 6; 1959 c 265
§ 7.]
54.40.070
Should a majority of the voters voting on the question
approve the proposition, the district shall be declared a five
commissioner district upon the certification of the election
returns. [1994 c 223 § 58; 1977 ex.s. c 36 § 4; 1959 c 265 §
5.]
54.40.060
54.44.010
54.40.070 Special election for commissioners from
districts—Terms. Within thirty days after the public utility
district commission divides the district into District A and
District B, the county legislative authority shall call a special
election, to be held at the next special election date provided
for under *RCW 29.13.010 that occurs sixty or more days
after the call, at which time the initial commissioners for District A and District B shall be elected. No primary shall be
held and a special filing period shall be opened as provided in
*RCW 29.15.170 and 29.15.180. The person receiving the
greatest number of votes for each position shall be elected.
The person who is elected receiving the greatest number
of votes shall be elected to a four-year term of office, and the
other person who is elected shall be elected to a two-year
term of office, if the election is held in an even-numbered
year, or the person who is elected receiving the greatest number of votes shall be elected to a three-year term of office, and
the other person who is elected shall be elected to a one-year
term of office, if the election is held in an odd-numbered
year. The length of these terms of office shall be calculated
from the first day in January in the year following their elections.
The newly elected commissioners shall assume office
immediately after being elected and qualified and shall serve
until their successors are elected and qualified and assume
office in accordance with *RCW 29.04.170. Each successor
shall be elected to a four-year term of office. [1994 c 223 §
61; 1977 ex.s. c 36 § 7; 1959 c 265 § 8.]
*Reviser's note: RCW 29.13.010, 29.15.170, 29.15.180, and 29.04.170
were recodified as RCW 29A.04.320, 29A.24.170, 29A.24.180, and
29A.20.040, respectively, pursuant to 2003 c 111 § 2401, effective July 1,
2004. RCW 29A.04.320, 29A.24.170, and 29A.24.180 were subsequently
repealed by 2004 c 271 § 193.
Chapter 54.44 RCW
NUCLEAR, THERMAL, ELECTRIC GENERATING
POWER FACILITIES—JOINT DEVELOPMENT
Chapter 54.44
Sections
54.44.010
54.44.020
54.44.030
54.44.040
54.44.050
54.44.060
54.44.900
54.44.901
54.44.910
Declaration of public purpose.
Authority to participate in and enter into agreements for operation of common facilities—Percentage of ownership—
Expenses—Taxes—Payments.
Liability of city, joint operating agency, or public utility district—Extent—Limitations.
Authority to provide money and/or property, issue revenue
bonds—Declaration of public purpose.
Depositories—Disbursement of funds.
Agreements to conform to applicable laws.
Liberal construction—Not to affect existing acts.
Severability—1973 1st ex.s. c 7.
Severability—1967 c 159.
54.44.010
54.44.010 Declaration of public purpose. It is
declared to be in the public interest and for a public purpose
that cities of the first class, public utility districts, joint operating agencies organized under chapter 43.52 RCW, regu[Title 54 RCW—page 35]
54.44.020
Title 54 RCW: Public Utility Districts
lated electrical companies and, rural electrical cooperatives
including generation and transmission cooperatives be permitted to participate together in the development of nuclear
and other thermal power facilities and transmission facilities
as hereinafter provided as one means of achieving economies
of scale and thereby promoting the economic development of
the state and its natural resources to meet the future power
needs of the state and all its inhabitants. [1975-'76 2nd ex.s.
c 72 § 1; 1973 1st ex.s. c 7 § 1; 1967 c 159 § 1.]
Severability—1975-'76 2nd ex.s. c 72: "If any provision of this 1976
amendatory act, or its application to any person or circumstance is held
invalid, the remainder of the act, or the application of the provision to other
persons or circumstances is not affected." [1975-'76 2nd ex.s. c 72 § 3.]
Legislative finding—Emergency—1973 1st ex.s. c 7: "The legislature
finds that the immediate planning, financing, acquisition and construction of
electric generating and transmission facilities as provided in sections 1
through 6 of this 1973 amendatory act is a public necessity to meet the power
requirements of the public utility districts, cities, joint operating agencies
and regulated utilities referred to in sections 1 through 6 of this 1973 amendatory act and the inhabitants of this state; further that such public utility districts, cities, joint operating agencies and regulated utilities are ready, willing
and able to undertake such planning, financing, acquisition and construction
of said electric generating and transmission facilities immediately upon the
passage of sections 1 through 6 of this 1973 amendatory act. This 1973
amendatory act is necessary for the immediate preservation of the public
peace, health and safety, the support of the state government and its existing
public institutions, and shall take effect immediately." [1973 1st ex.s. c 7 §
7.]
Energy facilities, site locations: Chapter 80.50 RCW.
Nuclear energy and radiation: Chapter 70.98 RCW.
54.44.020
54.44.020 Authority to participate in and enter into
agreements for operation of common facilities—Percentage of ownership—Expenses—Taxes—Payments. (1)
Except as provided in subsection (2) of this section, cities of
the first class, public utility districts organized under chapter
54.08 RCW, and joint operating agencies organized under
chapter 43.52 RCW, any such cities and public utility districts which operate electric generating facilities or distribution systems and any joint operating agency shall have power
and authority to participate and enter into agreements with
each other and with electrical companies which are subject to
the jurisdiction of the Washington utilities and transportation
commission or the public utility commissioner of Oregon,
hereinafter called "regulated utilities", and with rural electric
cooperatives, including generation and transmission cooperatives for the undivided ownership of any type of electric generating plants and facilities, including, but not limited to
nuclear and other thermal power generating plants and facilities and transmission facilities including, but not limited to,
related transmission facilities, hereinafter called "common
facilities", and for the planning, financing, acquisition, construction, operation and maintenance thereof. It shall be provided in such agreements that each city, public utility district,
or joint operating agency shall own a percentage of any common facility equal to the percentage of the money furnished
or the value of property supplied by it for the acquisition and
construction thereof and shall own and control a like percentage of the electrical output thereof.
(2) Cities of the first class, public utility districts organized under chapter 54.08 RCW, and joint operating agencies
organized under chapter 43.52 RCW, shall have the power
and authority to participate and enter into agreements for the
undivided ownership of a coal-fired thermal electric generat[Title 54 RCW—page 36]
ing plant and facility placed in operation before July 1, 1975,
including related common facilities, and for the planning,
financing, acquisition, construction, operation, and maintenance of the plant and facility. It shall be provided in such
agreements that each city, public utility district, or joint operating agency shall own a percentage of any common facility
equal to the percentage of the money furnished or the value of
property supplied by the city, district, or agency, for the
acquisition and construction of the facility and shall own and
control a like percentage of the electrical output thereof. Cities of the first class, public utility districts, and joint operating
agencies may enter into agreements under this subsection
with each other, with regulated utilities, with rural electric
cooperatives, with electric companies subject to the jurisdiction of the regulatory commission of any other state, and with
any power marketer subject to the jurisdiction of the federal
energy regulatory commission.
(3) Each participant shall defray its own interest and
other payments required to be made or deposited in connection with any financing undertaken by it to pay its percentage
of the money furnished or value of property supplied by it for
the planning, acquisition and construction of any common
facility, or any additions or betterments thereto. The agreement shall provide a uniform method of determining and
allocating operation and maintenance expenses of the common facility.
(4) Each city, public utility district, joint operating
agency, regulated utility, and cooperatives participating in
the ownership or operation of a common facility shall pay all
taxes chargeable to its share of the common facility and the
electric energy generated thereby under applicable statutes as
now or hereafter in effect, and may make payments during
preliminary work and construction for any increased financial burden suffered by any county or other existing taxing
district in the county in which the common facility is located,
pursuant to agreement with such county or taxing district.
[1997 c 230 § 2; 1975-'76 2nd ex.s. c 72 § 2; 1974 ex.s. c 72
§ 1; 1973 1st ex.s. c 7 § 2; 1967 c 159 § 2.]
Severability—1975-'76 2nd ex.s. c 72: See note following RCW
54.44.010.
54.44.030
54.44.030 Liability of city, joint operating agency, or
public utility district—Extent—Limitations. In carrying
out the powers granted in this chapter, each such city, public
utility district, or joint operating agency shall be severally liable only for its own acts and not jointly or severally liable for
the acts, omissions or obligations of others. No money or
property supplied by any such city, public utility district, or
joint operating agency for the planning, financing, acquisition, construction, operation or maintenance of any common
facility shall be credited or otherwise applied to the account
of any other participant therein, nor shall the undivided share
of any city, public utility district, or joint operating agency in
any common facility be charged, directly or indirectly, with
any debt or obligation of any other participant or be subject to
any lien as a result thereof. No action in connection with a
common facility shall be binding upon any public utility district, city, or joint operating agency unless authorized or
approved by resolution or ordinance of its governing body.
[1973 1st ex.s. c 7 § 3; 1967 c 159 § 3.]
(2004 Ed.)
Agreements Between Electrical Public Utilities and Cooperatives
54.44.040
54.44.040 Authority to provide money and/or property, issue revenue bonds—Declaration of public purpose. Any such city, public utility district, or joint operating
agency participating in common facilities under this chapter,
without an election, may furnish money and provide property, both real and personal, issue and sell revenue bonds
pledging revenues of its electric system and its interest or
share of the revenues derived from the common facilities and
any additions and betterments thereto in order to pay its
respective share of the costs of the planning, financing,
acquisition and construction thereof. Such bonds shall be
issued under the provisions of applicable laws authorizing the
issuance of revenue bonds for the acquisition and construction of electric public utility properties by cities, public utility
districts, or joint operating agencies as the case may be. All
moneys paid or property supplied by any such city, public
utility district, or joint operating agency for the purpose of
carrying out the powers conferred herein are declared to be
for a public purpose. [1973 1st ex.s. c 7 § 4; 1967 c 159 § 4.]
Chapter 54.48
54.48.040
Chapter 54.48 RCW
AGREEMENTS BETWEEN ELECTRICAL PUBLIC
UTILITIES AND COOPERATIVES
Sections
54.48.010
54.48.020
54.48.030
54.48.040
Definitions.
Legislative declaration of policy.
Agreements between public utilities and cooperatives authorized—Boundaries—Extension procedures—Purchase or
sale—Approval.
Cooperatives not to be classified as public utilities or under
authority of utilities and transportation commission.
54.48.010
54.48.010 Definitions. When used in this chapter:
(1) "Public utility" means any privately owned public
utility company engaged in rendering electric service to the
public for hire, any public utility district engaged in rendering
service to residential customers and any city or town engaged
in the electric business.
(2) "Cooperative" means any cooperative having authority to engage in the electric business. [1969 c 102 § 1.]
54.44.050
54.44.050 Depositories—Disbursement of funds. All
moneys belonging to cities, public utility districts, and joint
operating agencies in connection with common facilities
shall be deposited in such depositories as qualify for the
deposit of public funds and shall be accounted for and disbursed in accordance with applicable law. [1973 1st ex.s. c 7
§ 5; 1967 c 159 § 5.]
54.44.060
54.44.060 Agreements to conform to applicable laws.
Any agreement with respect to work to be done or material
furnished by any such city, public utility district, or joint
operating agency in connection with the construction, maintenance and operation of the common facilities, and any additions and betterments thereto shall be in conformity, as near
as may be, with applicable laws now or hereafter in effect
relating to public utility districts or cities of the first class.
[1973 1st ex.s. c 7 § 6; 1967 c 159 § 6.]
54.44.900
54.44.900 Liberal construction—Not to affect existing acts. The provisions of this chapter shall be liberally construed to effectuate the purposes thereof. This chapter shall
not be construed to affect any existing act or part thereof
relating to the construction, operation or maintenance of any
public utility. [1967 c 159 § 7.]
54.44.901
54.44.901 Severability—1973 1st ex.s. c 7. If any provision of this 1973 amendatory act, or its application to any
person or circumstance is held invalid, the remainder of the
act, or the application of the provision to other persons or circumstances is not affected. [1973 1st ex.s. c 7 § 8.]
54.44.910
54.44.910 Severability—1967 c 159. If any provisions
of this act or its application to any person or circumstance
shall be held invalid or unconstitutional, the remainder of this
act or its application to other persons or circumstances shall
not be affected. [1967 c 159 § 8.]
(2004 Ed.)
54.48.020
54.48.020 Legislative declaration of policy. The legislature hereby declares that the duplication of the electric lines
and service of public utilities and cooperatives is uneconomical, may create unnecessary hazards to the public safety, discourages investment in permanent underground facilities,
and is unattractive, and thus is contrary to the public interest
and further declares that it is in the public interest for public
utilities and cooperatives to enter into agreements for the purpose of avoiding or eliminating such duplication. [1969 c
102 § 2.]
54.48.030
54.48.030 Agreements between public utilities and
cooperatives authorized—Boundaries—Extension procedures—Purchase or sale—Approval. In aid of the foregoing declaration of policy, any public utility and any cooperative is hereby authorized to enter into agreements with any
one or more other public utility or one or more other cooperative for the designation of the boundaries of adjoining service areas which each such public utility or each such cooperative shall observe, for the establishment of procedures for
orderly extension of service in adjoining areas not currently
served by any such public utility or any such cooperative and
for the acquisition or disposal by purchase or sale by any such
public utility or any such cooperative of duplicating utility
facilities, which agreements shall be for a reasonable period
of time not in excess of twenty-five years: PROVIDED, That
the participation in such agreement of any public utility
which is an electrical company under RCW 80.04.010,
excepting cities and towns, shall be approved by the Washington utilities and transportation commission. [1969 c 102 §
3.]
54.48.040
54.48.040 Cooperatives not to be classified as public
utilities or under authority of utilities and transportation
commission. Nothing herein shall be construed to classify a
cooperative having authority to engage in the electric business as a public utility or to include cooperatives under the
authority of the Washington utilities and transportation commission. [1969 c 102 § 4.]
[Title 54 RCW—page 37]
Chapter 54.52
Chapter 54.52
Title 54 RCW: Public Utility Districts
Chapter 54.52 RCW
VOLUNTARY CONTRIBUTIONS TO ASSIST
LOW-INCOME CUSTOMERS
Sections
54.52.010
54.52.020
54.52.030
Voluntary contributions to assist low-income residential customers—Administration.
Disbursal of contributions—Quarterly report.
Contributions not considered commingling of funds.
54.52.010
54.52.010 Voluntary contributions to assist lowincome residential customers—Administration. A public
utility district may include along with, or as part of its regular
customer billings, a request for voluntary contributions to
assist qualified low-income residential customers of the district in paying their electricity bills. All funds received by the
district in response to such requests shall be transmitted to the
grantee of the department of community, trade, and economic
development which administers federally funded energy
assistance programs for the state in the district's service area
or to a charitable organization within the district's service
area. All such funds shall be used solely to supplement assistance to low-income residential customers of the district in
paying their electricity bills. The grantee or charitable organization shall be responsible to determine which of the district's
customers are qualified for low-income assistance and the
amount of assistance to be provided to those who are qualified. [1995 c 399 § 145; 1985 c 6 § 20; 1984 c 59 § 1.]
54.52.020
54.52.020 Disbursal of contributions—Quarterly
report. All assistance provided under this chapter shall be
disbursed by the grantee or charitable organization. Where
possible the public utility district will be paid on behalf of the
customer by the grantee or the charitable organization. When
direct vendor payment is not feasible, a check will be issued
jointly payable to the customer and the public utility district.
The availability of funds for assistance to a district's lowincome customers as a result of voluntary contributions shall
not reduce the amount of assistance for which the district's
customers are eligible under the federally funded energy
assistance programs administered by the grantee of the
department of community, trade, and economic development
within the district's service area. The grantee or charitable
organization shall provide the district with a quarterly report
on January 15th, April 15th, July 15th, and October 15th
which includes information concerning the total amount of
funds received from the district, the names of all recipients of
assistance from these funds, the amount received by each
recipient, and the amount of funds received from the district
currently on hand and available for future low-income assistance. [1995 c 399 § 146; 1985 c 6 § 21; 1984 c 59 § 2.]
54.52.030
54.52.030 Contributions not considered commingling of funds. Contributions received under a program
implemented by a public utility district in compliance with
this chapter shall not be considered a commingling of funds.
[1984 c 59 § 3.]
[Title 54 RCW—page 38]
(2004 Ed.)
Title 55
SANITARY DISTRICTS
Title 55
Chapters
55.04 Formation and dissolution.
Conveyance of real property by public bodies—Recording: RCW 65.08.095.
Credit card use by local governments: RCW 43.09.2855.
Dissolution of inactive special purpose districts: Chapter 36.96 RCW.
Hospitalization and medical aid for public employees and dependents—Premiums, governmental contributions authorized: RCW 41.04.180,
41.04.190.
Local governmental organizations, actions affecting boundaries, etc., review
by boundary review board: Chapter 36.93 RCW.
Municipal corporation may authorize investment of funds which are in custody of county treasurer or other municipal corporation treasurer:
RCW 36.29.020.
Public bodies may retain collection agencies to collect public debts—Fees:
RCW 19.16.500.
Chapter 55.04
Chapter 55.04 RCW
FORMATION AND DISSOLUTION
Sections
55.04.050
55.04.060
Dissolution.
Disincorporation of district located in county with a population of two hundred ten thousand or more and inactive for
five years.
Elections: Title 29A RCW.
55.04.050 Dissolution.
53.48 RCW.
55.04.050
See port districts, chapter
55.04.060 Disincorporation of district located in
county with a population of two hundred ten thousand or
more and inactive for five years. See chapter 57.90 RCW.
55.04.060
(2004 Ed.)
[Title 55 RCW—page 1]
Title 57
Title 57
WATER-SEWER DISTRICTS
Chapters
57.02 General provisions.
57.04 Formation and dissolution.
57.06 Validation and construction.
57.08 Powers.
57.12 Officers and elections.
57.16 Comprehensive plan—Local improvement districts.
57.20 Finances.
57.22 Contracts for system extensions.
57.24 Annexation of territory.
57.28 Withdrawal of territory.
57.32 Consolidation of districts—Transfer of part of
district.
57.36 Merger of districts.
57.42 Disposition of property to public utility district.
57.46 Voluntary contributions to assist low-income customers.
57.90 Disincorporation of districts in counties with
210,000 population or more.
Assumption of jurisdiction over district or territory to city or town: Chapter
35.13A RCW.
City sewerage, drainage, and water supply: RCW 35.21.210, chapters 35.67
and 35.92 RCW.
Conveyances of real property by public bodies—Recording: RCW
65.08.095.
County water systems, authority, procedure: Chapter 36.94 RCW.
Credit card use by local governments: RCW 43.09.2855.
Furnishing impure water: RCW 70.54.020.
Hospitalization and medical aid for public employees and dependents—Premiums, governmental contributions authorized: RCW 41.04.180,
41.04.190.
Irrigation districts authorized to acquire water district's water system,
authority to convey: RCW 87.03.015.
Municipal corporation may authorize investment of funds that are in custody
of county treasurer or other municipal corporation treasurer: RCW
36.29.020.
Pollution of watershed or source of drinking water: RCW 70.54.010,
70.54.030.
Port district may provide sewer and water utilities in adjacent areas: RCW
53.08.040.
Chapter 57.02
Chapter 57.02 RCW
GENERAL PROVISIONS
Sections
57.02.001
57.02.010
57.02.015
57.02.020
57.02.030
57.02.040
57.02.045
57.02.050
57.02.070
(2004 Ed.)
Reclassification of water and sewer districts—Previous
actions valid.
Petition signatures of property owners—Rules governing.
Board of commissioners may notify property owners about
petitions—Review of petitions—Information.
Claims against district.
Title to be liberally construed.
Water-sewer district activities to be approved—Criteria for
approval by county legislative authority.
Approval by county legislative authority final, when—Boundary review board approval.
Multicounty districts—Delegation of duties—Exceptions.
Ratification of actions for the formation, annexation, consolidation, or merger of water districts prior to July 10, 1982.
57.02.080
57.02.090
Water-sewer districts desiring to merge into irrigation districts—Procedure.
Elections.
Effect when city or town takes over portion of water system: RCW
57.08.035.
57.02.001
57.02.001 Reclassification of water and sewer districts—Previous actions valid. Every sewer district and
every water district previously created shall be reclassified
and shall become a water-sewer district, and shall be known
as the ". . . . . Water-Sewer District," or "Water-Sewer District No. . . . ." or shall continue to be known as a "sewer district" or a "water district," with the existing name or number
inserted, as appropriate. As used in this title, "district" means
a water-sewer district, a sewer district, or a water district. All
debts, contracts, and obligations previously made or incurred
by or in favor of any water district or sewer district, and all
bonds or other obligations issued or executed by those districts, and all assessments or levies, and all other things and
proceedings done or taken by those districts or by their
respective officers, are declared legal and valid and of full
force and effect. [1996 c 230 § 101.]
Part headings not law—1996 c 230: "Part headings as used in this act
do not constitute any part of the law." [1996 c 230 § 1700.]
Effective date—1996 c 230: "This act shall take effect July 1, 1997."
[1996 c 230 § 1704.]
57.02.010
57.02.010 Petition signatures of property owners—
Rules governing. Wherever in this title petitions are
required to be signed by the owners of property, the following rules shall govern the sufficiency of the petitions:
(1) The signature of a record owner, as determined by the
records of the county auditor of the county in which the real
property is located, shall be sufficient without the signature
of the owner's spouse.
(2) For mortgaged property, the signature of the mortgagor shall be sufficient.
(3) For property purchased on contract, the signature of
the contract purchaser, as shown by the records of the county
auditor of the county in which the real property is located,
shall be sufficient.
(4) Any officer of a corporation owning land in the district duly authorized to execute deeds or encumbrances on
behalf of the corporation may sign on behalf of that corporation, except that there shall be attached to the petition a certified excerpt from the bylaws showing such authority.
(5) If any property in the district stands in the name of a
deceased person or any person for whom a guardian has been
appointed, the signature of the personal representative,
administrator, or guardian, as the case may be, shall be equivalent to the signature of the owner of the property. [1996 c
230 § 102; 1982 1st ex.s. c 17 § 8; 1953 c 251 § 24.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
[Title 57 RCW—page 1]
57.02.015
Title 57 RCW: Water-Sewer Districts
57.02.015
57.02.015 Board of commissioners may notify property owners about petitions—Review of petitions—Information. The board of commissioners of a district may notify
the owner or reputed owner of any tract, parcel of land, or
other property located within the area included in a petition
being circulated for a local improvement district or utility
local improvement district under chapter 57.16 RCW, an
annexation under chapter 57.24 RCW, a consolidation under
chapter 57.32 RCW, a merger under chapter 57.36 RCW, a
withdrawal of territory under chapter 57.28 RCW, or a transfer of territory under RCW 57.32.160.
Upon the request of any person, the board of commissioners of a district may:
(1) Review a proposed petition for proper drafting; and
(2) Provide information regarding the effects of the
adoption of any proposed petition. [1996 c 230 § 103; 1979
c 35 § 3. Formerly RCW 56.02.110.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.02.020
57.02.020 Claims against district.
RCW.
See chapter 4.96
57.02.030
57.02.030 Title to be liberally construed. The rule of
strict construction shall not apply to this title, which shall be
liberally construed to carry out its purposes and objects.
[1996 c 230 § 104; 1959 c 108 § 19.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.02.040
57.02.040 Water-sewer district activities to be
approved—Criteria for approval by county legislative
authority. (1) Notwithstanding any provision of law to the
contrary, the following proposed actions shall be approved as
provided for in RCW 57.02.045:
(a) Formation or reorganization under chapter 57.04
RCW;
(b) Annexation of territory under chapter 57.24 RCW;
(c) Withdrawal of territory under chapter 57.28 RCW;
(d) Transfer of territory under RCW 57.32.160;
(e) Consolidation under chapter 57.32 RCW; and
(f) Merger under chapter 57.36 RCW.
(2) At least one of the districts involved shall give notice
of the proposed action to the county legislative authority,
state department of ecology, and state department of health.
The county legislative authority shall within thirty days of
receiving notice of the proposed action approve the action or
hold a hearing on the action.
(3) The county legislative authority shall decide within
sixty days of a hearing whether to approve or not approve the
proposed action. In approving or not approving the proposed
action, the county legislative authority shall consider the following criteria:
(a) Whether the proposed action in the area under consideration is in compliance with the development program
that is outlined in the county comprehensive plan, or city or
town comprehensive plan where appropriate, and its supporting documents;
(b) Whether the proposed action in the area under consideration is in compliance with the basinwide water and/or
[Title 57 RCW—page 2]
sewage plan as approved by the state department of ecology
and the state department of social and health services; and
(c) Whether the proposed action is in compliance with
the policies expressed in the county plan for water and/or
sewage facilities.
(4) If the proposed action is inconsistent with subsection
(3)(a), (b), or (c) of this section, the county legislative authority shall not approve it. If the proposed action is consistent
with subsection (3)(a), (b), and (c) of this section, the county
legislative authority shall approve it unless it finds that water
or sewer service in the area under consideration will be most
appropriately served by the county itself under the provisions
of chapter 36.94 RCW, or by another district, city, town, or
municipality. If there has not been adopted for the area under
consideration a plan or program under subsection (3)(a), (b),
or (c) of this section, the proposed action shall not be found
inconsistent with such subsection.
(5) Where a district is proposed to be formed, and where
no boundary review board is established in the county, the
petition described in RCW 57.04.030 shall serve as the notice
of proposed action under this section, and the hearing provided for in RCW 57.04.030 shall serve as the hearing provided for in this section and in RCW 57.02.045. [1996 c 230
§ 105; 1988 c 162 § 7; 1971 ex.s. c 139 § 2.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
1988 validation: RCW 57.06.180.
57.02.045
57.02.045 Approval by county legislative authority
final, when—Boundary review board approval. In any
county where a boundary review board, as provided in chapter 36.93 RCW, is not established, the approval of the proposed action shall be by the county legislative authority pursuant to RCW 57.02.040 and shall be final, and the procedures required to adopt such proposed action shall be
followed as provided by law.
In any county where a boundary review board, as provided in chapter 36.93 RCW, is established, a notice of intention of the proposed action shall be filed with the boundary
review board as required by RCW 36.93.090 and with the
county legislative authority. The county legislative authority
shall transmit to the boundary review board a report of its
approval or disapproval of the proposed action together with
its findings and recommendations under RCW 57.02.040.
Approval by the county legislative authority of the proposed
action shall be final and the procedures required to adopt the
proposal shall be followed as provided by law, unless the
boundary review board reviews the action under RCW
36.93.100 through 36.93.180. If the county legislative
authority does not approve the proposed action, the boundary
review board shall review the action under RCW 36.93.150
through 36.93.180. The action of the boundary review board
shall supersede approval or disapproval by the county legislative authority.
Where a district is proposed to be formed, and where no
boundary review board is established in the county, the hearings provided for in RCW 57.04.030 shall serve as the hearing provided for in this section and in RCW 57.02.040. [1996
c 230 § 106; 1988 c 162 § 6; 1971 ex.s. c 139 § 3. Formerly
RCW 56.02.070.]
(2004 Ed.)
Formation and Dissolution
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
1988 validation: RCW 57.06.180.
57.02.050
57.02.050 Multicounty districts—Delegation of
duties—Exceptions. Whenever the boundaries or proposed
boundaries of a district include or are proposed to include by
means of formation, annexation, transfer, withdrawal, consolidation, or merger, territory in more than one county:
(1) All duties delegated by this title to officers of the
county in which the district is located shall be delegated to
the officers of the county in which the largest land area of the
district is located, except that elections shall be conducted
pursuant to general election law;
(2) Actions subject to review and approval under RCW
57.02.040 shall be reviewed and approved only by the officers or boundary review board in the county in which such
actions are proposed to occur;
(3) Verification of voters' signatures shall be conducted
by the county auditor of the county in which such signators
reside; and
(4) Comprehensive plan review and approval or rejection by the respective county legislative authorities under
RCW 57.16.010 shall be limited to that part of such plans
within the respective counties. [1996 c 230 § 108; 1994 c 223
§ 66; 1982 1st ex.s. c 17 § 5.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.02.070
57.02.070 Ratification of actions for the formation,
annexation, consolidation, or merger of water districts
prior to July 10, 1982. All actions taken in regard to the formation, annexation, consolidation, or merger of water districts taken prior to July 10, 1982, but consistent with this
title, as amended, are hereby approved and ratified and shall
be legal for all purposes. [1982 1st ex.s. c 17 § 7.]
57.02.080
57.02.080 Water-sewer districts desiring to merge
into irrigation districts—Procedure. The procedures and
provisions of RCW 85.08.830 through 85.08.890, which are
applicable to drainage improvement districts, joint drainage
improvement districts, or consolidated drainage improvement districts that desire to merge into irrigation districts,
shall also apply to districts organized, or reorganized, under
this title that desire to merge into irrigation districts.
The authority granted by this section shall be cumulative
and in addition to any other power or authority granted by
law to any district. [1996 c 230 § 107; 1977 ex.s. c 208 § 3.
Formerly RCW 56.02.100.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Merger of irrigation district with drainage, joint drainage, consolidated
drainage improvement, or water-sewer district: RCW 87.03.720,
87.03.725.
57.02.090
57.02.090 Elections. Elections in a district shall be conducted under general election laws. [1996 c 230 § 109.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
(2004 Ed.)
Chapter 57.04
57.04.030
Chapter 57.04 RCW
FORMATION AND DISSOLUTION
Sections
57.04.001
57.04.020
57.04.030
57.04.050
57.04.055
57.04.060
57.04.065
57.04.070
57.04.080
57.04.090
57.04.100
57.04.110
57.04.120
57.04.130
57.04.140
Actions subject to review by boundary review board.
Districts authorized.
Petition procedure—Hearing—Boundaries.
Election—Notice—Excess tax levy.
County auditor to conduct elections—Expenses.
District created—Name—Formation expenses.
Change of name—Procedure—Effect.
When two or more petitions filed.
Act cumulative.
Dissolution—Legislative and court methods.
Dissolution—Election method.
Dissolution when district's boundaries identical with municipality.
Sewerage improvement districts located in counties with populations of from forty thousand to less than seventy thousand
become sewer districts.
Sewerage improvement districts operating as sewer districts
become water-sewer districts—Procedure.
Formation—Alternative method—New development.
Dissolution of inactive special purpose districts: Chapter 36.96 RCW.
57.04.001
57.04.001 Actions subject to review by boundary
review board. Actions taken under this chapter may be subject to potential review by a boundary review board under
chapter 36.93 RCW. [1996 c 230 § 201; 1989 c 84 § 56.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.04.020
57.04.020 Districts authorized. Water-sewer districts
are authorized to be established for the purposes of chapter
57.08 RCW. Such districts may include within their boundaries one or more counties, cities, and towns, or other political subdivisions. However, no portion or all of any city or
town may be included without the consent by resolution of
the city or town legislative authority. [1996 c 230 § 202;
1982 1st ex.s. c 17 § 9; 1929 c 114 § 1; RRS § 11579. Cf.
1913 c 161 § 1.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.04.030
57.04.030 Petition procedure—Hearing—Boundaries. (1) For the purpose of formation of water-sewer districts, a petition shall be presented to the county legislative
authority of each county in which the proposed district is
located. The petition shall set forth the reasons for the creation of the district, designate the boundaries of the district,
and state that establishment of the district will be conducive
to the public health, convenience, and welfare and will be of
benefit to the property included in the district. The petition
shall state the proposed name of the district, which may be
". . . . . . . Sewer-Water [Water-Sewer] District," ". . . . . . .
Water District," ". . . . . . . Sewer District," or may be designated by a number such as ". . . . . . . . County Water-Sewer
District No. . . .." The petition shall specify the proposed
property tax levy assessment, if any, which shall not exceed
one dollar and twenty-five cents per thousand dollars of
assessed value, for general preliminary expenses of the district. The petition shall be signed by at least ten percent of the
registered voters who voted in the last municipal general
election, who shall be qualified voters on the date of filing the
petition, residing within the district described in the petition.
[Title 57 RCW—page 3]
57.04.050
Title 57 RCW: Water-Sewer Districts
The petition shall be filed with the county auditor of the
county in which all or the largest geographic portion of the
proposed district is located, who shall within ten days examine and verify the signatures on the petition. No person having signed such a petition shall be allowed to withdraw the
person's name from the petition after the filing of the petition
with the county auditor. If the area proposed to be included in
the district is located in more than one county, the auditor of
the county in which the largest geographic portion of the district is located shall be the lead auditor and shall immediately
transfer a copy of the petitions to the auditor of each other
county in which the proposed district is located. Within ten
days after the lead auditor received the petition, the auditors
of these other counties shall certify to the lead auditor: (a)
The number of voters of that county residing in the proposed
district who voted at the last municipal general election; and
(b) the number of valid signatures on the petition of voters of
that county residing in the proposed district. The lead auditor
shall certify the sufficiency of the petition after receiving this
information. If the petition shall be found to contain a sufficient number of signatures, the county auditor or lead county
auditor shall then transmit it, together with a certificate of
sufficiency attached thereto to the county legislative authority of each county in which the proposed district is located.
(2) If in the opinion of the county health officer the existing water, sewerage, or drainage facilities are inadequate in
the district to be created, and creation of the district is necessary for public health and safety, then the legislative authority
of the county may declare by resolution that a water-sewer
district is a public health and safety necessity, and the district
shall be organized under this title, without a petition being
required.
(3) Following receipt of a petition certified to contain a
sufficient number of signatures, or upon declaring a district to
be a public health and safety necessity, at a regular or special
meeting the county legislative authority shall cause to be
published once a week for at least two weeks in one or more
newspapers of general circulation in the proposed district, a
notice that such a petition has been presented, stating the time
of the meeting at which the petition shall be considered, and
setting forth the boundaries of the proposed district. When a
petition is presented for hearing, each county legislative
authority shall hear the petition or may adjourn the hearing
from time to time not exceeding one month in all. Any person, firm, or corporation may appear before the county legislative authority and make objections to the establishment of
the district or the proposed boundary lines thereof. Upon a
final hearing each county legislative authority shall make
such changes in the proposed boundary lines within the
county as it deems to be proper and shall establish and define
the boundaries and shall find whether the proposed district
will be conducive to the public health, welfare, and convenience and be of special benefit to the land included within
the boundaries of the proposed district. No lands that will not,
in the judgment of the county legislative authority, be benefitted by inclusion therein, shall be included within the
boundaries of the district. No change shall be made by the
county legislative authority in the boundary lines to include
any territory outside of the boundaries described in the petition, except that the boundaries of any proposed district may
be extended by the county legislative authority to include
[Title 57 RCW—page 4]
other lands in the county upon a petition signed by the owners
of all of the land within the proposed extension. [1996 c 230
§ 203; 1990 c 259 § 27; 1987 c 33 § 3; 1985 c 469 § 58; 1982
1st ex.s. c 17 § 10; 1931 c 72 § 3; 1929 c 114 § 2; RRS §
11580. Cf. 1915 c 24 § 1; 1913 c 161 § 2. Formerly RCW
57.04.030 and 57.04.040.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.04.050
57.04.050 Election—Notice—Excess tax levy. Upon
entry of the findings of the final hearing on the petition if one
or more county legislative authorities find that the proposed
district will be conducive to the public health, welfare, and
convenience and will benefit the land therein, they shall
present a resolution to the county auditor calling for a special
election to be held at a date specified under *RCW
29.13.020, that occurs forty-five or more days after the resolution is presented, at which a ballot proposition authorizing
the district to be created shall be submitted to voters for their
approval or rejection. The commissioners shall cause to be
published a notice of the election for four successive weeks in
a newspaper of general circulation in the proposed district,
which notice shall state the hours during which the polls will
be open, the boundaries of the district as finally adopted and
the object of the election, and the notice shall also be posted
ten days in ten public places in the proposed district. The district shall be created if the ballot proposition authorizing the
district to be created is approved by a majority of the voters
voting on the proposition.
A separate ballot proposition authorizing the district, if
created, to impose a single-year excess levy for the preliminary expenses of the district shall be submitted to voters for
their approval or rejection at the same special election, if the
petition to create the district also proposed that a ballot proposition authorizing an excess levy be submitted to voters for
their approval or rejection. The excess levy shall be proposed
in the amount specified in the petition to create the district,
not to exceed one dollar and twenty-five cents per thousand
dollars of assessed value, and may only be submitted to voters for their approval or rejection if the special election is
held in February, March, April, or May. The proposition to be
effective must be approved in the manner set forth in Article
VII, section 2(a) of the state Constitution. [1999 c 153 § 1;
1996 c 230 § 204; 1994 c 292 § 2; 1990 c 259 § 28; 1987 c 33
§ 4; 1982 1st ex.s. c 17 § 11; 1973 1st ex.s. c 195 § 67; 1953
c 251 § 1; 1931 c 72 § 4; 1929 c 114 § 3; RRS § 11581. Cf.
1927 c 230 § 1; 1915 c 24 § 2; 1913 c 161 § 3.]
*Reviser's note: RCW 29.13.020 was recodified as RCW 29A.04.330
pursuant to 2003 c 111 § 2401, effective July 1, 2004.
Part headings not law—1999 c 153: "Part headings as used in this act
do not constitute any part of the law." [1999 c 153 § 77.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Findings—Intent—1994 c 292: "The legislature finds that the monitoring and treatment requirements of the federal safe drinking water act place
increasing burdens and cost on public water supply systems, especially
smaller systems and rural systems. Across the state, those systems are turning to existing systems and their county governments for help, which may
include assumption of the system.
It is the intent of the legislature to encourage larger existing systems to
assist or acquire troubled systems or those systems burdened by federal
requirements, to provide financial protection for that assistance, and to protect receivers of failed water systems." [1994 c 292 § 1.]
(2004 Ed.)
Formation and Dissolution
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
57.04.055
57.04.055 County auditor to conduct elections—
Expenses. All elections held pursuant to this title, whether
general or special, shall be conducted by the county auditor
of the county in which the district is located. Except as provided in RCW 57.04.060, the expense of all such elections
shall be paid for out of the funds of the district. [1996 c 230
§ 208; 1941 c 210 § 40; Rem. Supp. 1941 § 9425-49. Formerly RCW 56.04.080.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.04.060
57.04.060 District created—Name—Formation
expenses. If at the election a majority of the voters voting
upon the proposition vote in favor of the formation of the district the county legislative authority shall so declare in its
canvass of the returns of the election to be made within ten
days after the date of the election, and the district shall then
be and become a municipal corporation of the state of Washington, and the name of the district shall be the name of the
district as provided in the petition and the ballot.
The county's expenses incurred in the formation of the
district, including the election costs associated with the ballot
proposition authorizing the district, election of the initial
commissioners under RCW 57.12.030, and the ballot proposition authorizing the excess levy, shall be repaid to the
county if the district is formed. [1996 c 230 § 205; 1929 c
114 § 5; RRS § 11583. Cf. 1913 c 161 § 5.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.04.065
57.04.065 Change of name—Procedure—Effect.
Any district may apply to change its name by filing with the
county legislative authority in which was filed the original
petition for organization of the district, a certified copy of a
resolution of its board of commissioners adopted by majority
vote of all of the members of that board at a regular meeting
thereof providing for such change of name. After approval of
the new name by the county legislative authority, all proceedings for the district shall be had under the changed name, but
all existing obligations and contracts of the district entered
into under its former name shall remain outstanding without
change and with the validity thereof unimpaired and unaffected by such change of name. A change of name heretofore
made by any existing district in this state, substantially in the
manner approved under this section, is ratified, confirmed,
and validated. [1996 c 230 § 206; 1984 c 147 § 7.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.04.070
57.04.070 When two or more petitions filed. Whenever two or more petitions for the formation of a district shall
be filed as provided in this chapter, the petition describing the
greater area shall supersede all others and an election shall
first be held thereunder, and no lesser district shall ever be
created within the limits in whole or in part of any district,
except as provided in RCW 36.94.420. [1996 c 230 § 207;
1985 c 141 § 6; 1981 c 45 § 9; 1929 c 114 § 4; RRS § 11582.
Cf. 1913 c 161 § 4.]
(2004 Ed.)
57.04.120
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Legislative declaration—"District" defined—Severability—1981 c
45: See notes following RCW 36.93.090.
57.04.080
57.04.080 Act cumulative. *This act shall not be construed to repeal, amend, or modify any law heretofore
enacted providing a method for water supply for any city or
town in this state, but shall be held to be an additional and
concurrent method providing for such purpose. Nor shall this
act be construed to repeal **chapter 161 of the Laws of 1913,
pages 533 to 552, or amendments thereto. [1929 c 114 § 24;
RRS § 11601.]
Reviser's note: *(1) The language "this act" appeared in 1929 c 114,
the basic water district law, which is codified as follows: RCW 57.04.020,
57.04.030, 57.04.050 through 57.04.080, 57.04.100, 57.08.010, 57.08.050,
57.12.010, 57.12.020, 57.12.030, 57.16.010, 57.16.020, 57.16.030,
57.16.040, 57.16.050, 57.16.060, 57.16.070, 57.16.080 through 57.16.100,
57.20.010, 57.20.100 through 57.20.140, 57.24.010, 57.24.020, 57.24.040,
and 57.24.050.
**(2) As to the reference "chapter 161 of the Laws of 1913," see note
following RCW 57.06.010.
57.04.090
57.04.090 Dissolution—Legislative and court methods. Dissolution of district, see chapters 36.96 and 53.48
RCW.
57.04.100
57.04.100 Dissolution—Election method. Any district
may be disincorporated in the same manner (insofar as the
same is applicable) as is provided in RCW 35.07.010 through
35.07.220 for the disincorporation of cities and towns, except
that the petition for disincorporation shall be signed by not
less than twenty-five percent of the voters in the district.
[1996 c 230 § 209; 1994 c 81 § 80; 1929 c 114 § 25; 1917 c
147 § 1; RRS § 11602.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.04.110
57.04.110 Dissolution when district's boundaries
identical with municipality. A district whose boundaries
are identical with, or if the district is located entirely within,
the boundaries of a city or town may be dissolved by summary dissolution proceedings if the district is free from all
debts and liabilities except contractual obligations between
the district and the city or town. Summary dissolution shall
take place if the board of commissioners of the district votes
unanimously to dissolve the district and to turn all of its property over to the city or town within which the district lies, and
the council of such city or town unanimously passes an ordinance accepting the conveyance of the property and assets of
the district tendered to the city or town by the district. [1996
c 230 § 210; 1955 c 358 § 1.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Acceptance by town: RCW 35.92.012.
57.04.120
57.04.120 Sewerage improvement districts located in
counties with populations of from forty thousand to less
than seventy thousand become sewer districts. (1) On and
after March 16, 1979, any sewerage improvement districts
created under Title 85 RCW and located in a county with a
population of from forty thousand to less than seventy thou[Title 57 RCW—page 5]
57.04.130
Title 57 RCW: Water-Sewer Districts
sand shall become districts and shall be operated, maintained,
and have the same powers as districts created under this title,
upon being so ordered by the county legislative authority of
the county in which such district is located after a hearing of
which notice is given by publication in a newspaper of general circulation within the district and mailed to any known
creditors, holders of contracts, and obligees at least thirty
days prior to such hearing. After such hearing if the county
legislative authority finds the converting of such district to be
in the best interest of that district, it shall order that such
sewer improvement district shall become a district and fix the
date of such conversion. All debts, contracts, and obligations
created while attempting to organize or operate a sewerage
improvement district and all other financial obligations and
powers of the district to satisfy such obligations established
under Title 85 RCW are legal and valid until they are fully
satisfied or discharged under Title 85 RCW.
(2) The board of supervisors of a sewerage improvement
district in a county with a population of from forty thousand
to less than seventy thousand shall act as the board of commissioners of the district under subsection (1) of this section
until other members of the board of commissioners of the district are elected and qualified. There shall be an election on
the same date as the 1979 state general election and the seats
of all three members of the governing authority of every
entity which was previously known as a sewerage improvement district in a county with a population of from forty thousand to less than seventy thousand shall be up for election.
The election shall be held in the manner provided for in RCW
57.12.030 for the election of the first board of commissioners
of a district. Thereafter, the terms of office of the members of
the governing body shall be determined under RCW
57.12.030. [1996 c 230 § 211; 1991 c 363 § 136; 1979 c 35 §
1. Formerly RCW 56.04.120.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Purpose—Captions not law—1991 c 363: See notes following RCW
2.32.180.
authority of a district. The members of the governing authority shall continue in office for the term for which they were
elected. [1996 c 230 § 212; 1979 c 35 § 2. Formerly RCW
56.04.130.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.04.140
57.04.140 Formation—Alternative method—New
development. (1) As an alternative means to forming a
water-sewer district, a county legislative authority may
authorize the formation of a water-sewer district to serve a
new development that at the time of formation does not have
any residents, at written request of sixty percent of the owners of the area to be included in the proposed district. The
county legislative authority shall review the proposed district
according to the procedures and criteria in RCW 57.02.040.
(2) The county legislative authority shall appoint the initial water-sewer commissioners of the district. The commissioners shall serve until seventy-five percent of the development is sold and occupied, or until some other time as specified by the county legislative authority when the district is
approved. Commissioners serving under this section are not
entitled to any form of compensation from the district.
(3) New commissioners shall be elected according to the
procedures in chapter 57.12 RCW at the next election held
under *RCW 29.13.010 that follows more than ninety days
after the date seventy-five percent of the development is sold
and occupied, or after the time specified by the county legislative authority when the district is approved.
(4) A water-sewer district created under this section may
be transferred to a city or county, or dissolved if the district is
inactive, by order of the county legislative authority at the
written request of sixty percent of the owners of the area
included in the district. [1997 c 447 § 4.]
*Reviser's note: RCW 29.13.010 was recodified as RCW 29A.04.320
pursuant to 2003 c 111 § 2401, effective July 1, 2004. RCW 29A.04.320 was
subsequently repealed by 2004 c 271 § 193.
Finding—Purpose—Construction—1997 c 447: See notes following
RCW 70.05.074.
57.04.130
57.04.130 Sewerage improvement districts operating
as sewer districts become water-sewer districts—Procedure. Any sewerage improvement district which has been
operating as a sewer district shall be a district under this title
as of March 16, 1979, upon being so ordered by the county
legislative authority of the county in which such district is
located after a hearing of which notice is given by publication
in a newspaper of general circulation within the district and
mailed to any known creditors, holders of contracts, and obligees at least thirty days prior to such hearing. After such hearing if the county legislative authority finds that the sewerage
improvement district was operating as a district and that the
converting of such district will be in the best interest of that
district, it shall order that such sewer improvement district
shall become a district immediately upon the passage of the
resolution containing such order. The debts, contracts, and
obligations of any sewerage improvement district which has
been erroneously operating as a district are recognized as
legal and binding. The members of the government authority
of any sewerage improvement district which has been operating as a district and who were erroneously elected as sewer
district commissioners shall be recognized as the governing
[Title 57 RCW—page 6]
Chapter 57.06
Chapter 57.06 RCW
VALIDATION AND CONSTRUCTION
Sections
57.06.010
57.06.020
57.06.030
57.06.040
57.06.050
57.06.060
57.06.070
57.06.080
57.06.090
57.06.100
57.06.110
57.06.120
57.06.130
57.06.140
57.06.150
57.06.160
57.06.170
57.06.180
57.06.190
57.06.200
57.06.210
1927 validation.
1931 validation.
1943 validation.
1943 validation.
1943 validation.
1945 validation.
1945 validation.
1945 validation.
1953 validation.
1953 validation.
1953 validation.
1959 validation.
1959 severability.
1975 validation.
1975 validation.
1975 validation.
1975 validation.
1988 validation.
Sewer districts—Validation—1959 c 103.
Sewer districts—Formation of districts validated.
Sewer districts—Validation of prior mergers.
(2004 Ed.)
Validation and Construction
57.06.010
57.06.010 1927 validation. In case an attempt has been
made to organize a water district not containing within its
boundaries any incorporated city or town, and either through
inadvertence or mistake the election for the organization of
the district was held more than thirty days from the date of
such certificate of the county auditor but less than sixty days
from such date, such proceedings shall not be deemed invalid
by reason thereof, and in case all other proceedings in connection with the organization of any such water district were
regular, such proceedings are hereby validated and all bonds
and warrants issued or to be issued by any such water district
are hereby declared to be valid. [1927 c 230 § 2; RRS §
11581-1.]
Reviser's note: This section appeared in an act the first section of
which amended RRS § 11581 which compiled 1913 c 161 § 3 as amended.
1913 c 161 was declared unconstitutional in Drum v. University Place Water
District, 144 Wash. 585, 258 P. 505 (1927). The current basic water district
act codified in this title is 1929 c 114.
57.06.020
57.06.020 1931 validation. Each and all of the respective areas of land heretofore organized or attempted to be
organized or incorporated under *chapter 161 of the Laws of
1913, and amendments thereto, are each hereby declared to
be and created into duly existing water districts having the
respective boundaries set forth in their respective organization proceedings as shown in the files and records of the
office of the board of county commissioners of the county in
which said organization, or attempted organization is located.
The water districts validated or created by this act shall have
the same rights, liabilities, duties and obligations as water
districts created under chapter 114 of the Laws of 1929, and
amendments thereto: PROVIDED, That the provisions of
this act shall apply only to those water districts which have
maintained their organization as water districts since the date
of their attempted incorporation or establishment: PROVIDED, HOWEVER, That nothing herein contained shall be
deemed to validate the debts, contracts, bonds or other obligations executed prior to this act in connection with or in pursuance of such attempted organization, and all taxes or
assessments shall hereafter be levied in accordance with the
act of 1929, chapter 114, approved March 13, 1929. [1931 c
71 § 1; RRS § 11604.]
*Reviser's note: The language "chapter 161 of the Laws of 1913"
appears in 1931 c 71 § 1. See note following RCW 57.06.010.
57.06.090
improvement district, and all bonds or other obligations executed by such districts in connection with or in pursuance of
such attempted organization, and any and all assessments or
levies, and all other things and proceedings done or taken by
such districts or by their respective officers acting under or in
pursuance of such attempted organization, are hereby
declared legal and valid and of full force and effect. [1943 c
177 § 2; Rem. Supp. 1943 § 11604-14.]
57.06.050
57.06.050 1943 validation. The provisions of the act
shall apply only to such districts attempted to be organized
under chapter 114 of the Laws of 1929, and amendments
thereto, which have maintained their organization as such
since the date of such attempted organization, establishment,
or creation. [1943 c 177 § 3; Rem. Supp. 1943 § 11604-15.]
57.06.060
57.06.060 1945 validation. Each and all of the respective areas of land heretofore attempted to be organized into
water districts or into local improvement districts or utility
local improvement districts under the provisions of Pierce's
Perpetual Code 994-1 to -53, chapter 114, Laws of 1929, and
amendments thereto (sections 11579 to 11604, Remington's
Revised Statutes), are hereby validated and declared to be
duly existing water districts, or local improvement districts,
or utility local improvement districts, as the case may be,
having the respective boundaries set forth in their organization proceedings as shown by the files in the office of the
board of county commissioners of the county in question and
of such water districts. [1945 c 40 § 1; Rem. Supp. 1945 §
11604-17.]
57.06.070
57.06.070 1945 validation. All debts, contracts, and
obligations heretofore made or incurred by or in favor of any
such water district, local improvement district, or utility local
improvement district, and all bonds or other obligations executed by such districts in connection with or in pursuance of
such attempted organization, and any and all assessments or
levies, and all other things and proceedings done or taken by
such districts or by their respective officers acting under or in
pursuance of such attempted organization, are hereby
declared legal and valid and of full force and effect. [1945 c
40 § 2; Rem. Supp. 1945 § 11604-18.]
57.06.080
57.06.030
57.06.030 1943 validation. Each and all of the respective areas of land heretofore attempted to be organized into
water districts or into local improvement districts or utility
local improvement districts under the provisions of chapter
114 of the Laws of 1929 and amendments thereto, are hereby
validated and declared to be duly existing water districts, or
local improvement districts, or utility local improvement districts, as the case may be, having the respective boundaries
set forth in their organization proceedings as shown by the
files in the office of the board of county commissioners of the
county in question and of such water districts. [1943 c 177 §
1; Rem. Supp. 1943 § 11604-13.]
57.06.040
57.06.040 1943 validation. All debts, contracts, and
obligations heretofore made or incurred by or in favor of any
such water district, local improvement district, or utility local
(2004 Ed.)
57.06.080 1945 validation. The provisions of this act
shall apply only to such districts attempted to be organized
under Pierce's Perpetual Code 994-1 to 53, chapter 114, Laws
of 1929, and amendments thereto (sections 11579 to 11604,
Remington's Revised Statutes), which have maintained their
organization as such since the date of such attempted organization, establishment, or creation. [1945 c 40 § 3; Rem.
Supp. 1945 § 11604-19.]
57.06.090
57.06.090 1953 validation. Each and all of the respective areas of land heretofore attempted to be organized into
water districts, including all areas attempted to be annexed
thereto, or into local improvement districts or utility local
improvement districts, under the provisions of chapter 114,
Laws of 1929, and amendments thereto, are hereby validated
and declared to be duly existing water districts, or local
improvement districts, or utility local improvement districts,
[Title 57 RCW—page 7]
57.06.100
Title 57 RCW: Water-Sewer Districts
as the case may be, having the respective boundaries set forth
in their organization and annexation proceedings as shown by
the files in the office of the board of county commissioners of
the county in question and of such water districts. [1953 c
251 § 25.]
57.06.100
57.06.100 1953 validation. All debts, contracts, and
obligations heretofore made or incurred by or in favor of any
such water district, local improvement district, or utility local
improvement district, and all bonds or other obligations executed by such districts in connection with or in pursuance of
such attempted organization, and any and all assessments or
levies, and all other things and proceedings done or taken by
such districts or by their respective officers acting under or in
pursuance of such attempted organization, are hereby
declared legal and valid and of full force and effect. [1953 c
251 § 26.]
57.06.110
57.06.110 1953 validation. The provisions of this act
shall apply only to such districts attempted to be organized
under chapter 114, Laws of 1929, and amendments thereto,
which have maintained their organization as such since the
date of such attempted organization, establishment, or creation. [1953 c 251 § 27.]
57.06.120
57.06.120 1959 validation. All debts, contracts and
obligations heretofore made or incurred by or in favor of any
water district and all bonds, warrants, or other obligations
issued by such district, and all charges heretofore made by
such districts, and any and all assessments heretofore levied
in any local improvement districts or utility local improvement districts of any water district, and all other things and
proceedings relating thereto done or taken by such water districts or by their respective officers are hereby declared to be
legal and valid and of full force and effect from the date
thereof: PROVIDED, That nothing in this section shall apply
to ultra vires acts or acts of fraud committed by the officers or
agents of said district. [1959 c 108 § 18.]
such attempted organization, and any and all assessments or
levies, and all other things and proceedings done or taken by
such districts or by their respective officers, including by persons acting as commissioners nominated by petition of at
least twenty-five percent of the qualified electors of the district, and elected and qualified as otherwise provided by law,
acting under or in pursuance of such attempted organization,
are hereby declared legal and valid and of full force and
effect. [1975 1st ex.s. c 188 § 16.]
Severability—1975 1st ex.s. c 188: See RCW 36.94.921.
57.06.160
57.06.160 1975 validation. The holding and exercise of
the office of commissioner by persons now serving as members of the first board of commissioners under or in pursuance of such attempted organization, nominated by petition
of at least twenty-five percent of the qualified electors of the
district, and elected and qualified as otherwise provided by
law, is hereby declared legal and valid and of full force and
effect. [1975 1st ex.s. c 188 § 17.]
Severability—1975 1st ex.s. c 188: See RCW 36.94.921.
57.06.170
57.06.170 1975 validation. RCW 57.06.140 through
57.06.160 shall apply only to such districts attempted to be
organized under chapter 114, Laws of 1929, and amendments
thereto, which have maintained their organization as such
since the date of such attempted organization, establishment,
or creation, or which have been merged into another municipal corporation. [1975 1st ex.s. c 188 § 18.]
Severability—1975 1st ex.s. c 188: See RCW 36.94.921.
57.06.180
57.06.180 1988 validation. The existence of all water
districts formed in counties without a boundary review board
in compliance with the requirements of chapter 57.04 RCW,
whether or not the requirements of RCW 57.02.040 and
*56.02.070 were satisfied, is validated and such districts shall
be deemed to be legally formed. [1988 c 162 § 9.]
*Reviser's note: RCW 56.02.070 was recodified as RCW 57.02.045 by
1996 c 230 § 1701, effective July 1, 1997.
57.06.130
57.06.130 1959 severability. If any provision of this
act, or its application to any person or circumstance is held
invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not affected.
[1959 c 108 § 20.]
57.06.140
57.06.140 1975 validation. Each and all of the respective areas of land heretofore attempted to be organized into
water districts under the provisions of chapter 114, Laws of
1929, and amendments thereto, are hereby validated and
declared to be duly existing water districts, having the respective boundaries set forth in their organization proceedings as
shown by the files in the office of the board of county commissioners of the county in question and of such water districts. [1975 1st ex.s. c 188 § 15.]
57.06.190
57.06.190 Sewer districts—Validation—1959 c 103.
All debts, contracts and obligations heretofore made or
incurred by or in favor of any sewer district, all bonds, warrants, or other obligations issued by such districts, any connection or service charges made by such districts, any and all
assessments heretofore levied in any utility local improvement districts of any sewer districts, and all other things and
proceedings relating thereto done or taken by such sewer districts or by their respective officers are hereby declared to be
legal and valid and of full force and effect from the date
thereof: PROVIDED, That nothing in this section shall apply
to ultra vires acts or acts of fraud committed by the officers or
agents of said district. [1959 c 103 § 17. Formerly RCW
56.02.030.]
Severability—1959 c 103: See note following RCW 57.08.044.
Severability—1975 1st ex.s. c 188: See RCW 36.94.921.
57.06.200
57.06.150
57.06.150 1975 validation. All debts, contracts, and
obligations heretofore made or incurred by or in favor of any
such water district, and all bonds or other obligations executed by such districts in connection with or in pursuance of
[Title 57 RCW—page 8]
57.06.200 Sewer districts—Formation of districts
validated. The existence of all sewer districts formed in
counties without a boundary review board in compliance
with the requirements of *chapter 56.04 RCW, whether or
not the requirements of RCW **56.02.060 and ***56.02.070
(2004 Ed.)
Powers
were satisfied, is validated and such districts shall be deemed
to be legally formed. [1988 c 162 § 8. Formerly RCW
56.02.080.]
Reviser's note: *(1) Chapter 56.04 RCW was repealed and/or recodified in its entirety by 1996 c 230, effective July 1, 1997.
**(2) RCW 56.02.060 was repealed by 1996 c 230 § 1702, effective
July 1, 1997.
***(3) RCW 56.02.070 was recodified as RCW 57.02.045 pursuant to
1996 c 230 § 1701, effective July 1, 1997.
57.06.210
57.06.210 Sewer districts—Validation of prior mergers. Each and all of the respective areas of land organized as
a water district and heretofore attempted to be merged into a
sewer district under chapter 148 of the Laws of 1969 [ex.
sess.], and amendments thereto, and which have maintained
their organization as part of a sewer district since the date of
such attempted merger, are hereby validated and declared to
be a proper merger of a water district into a sewer district.
Such district shall have the respective boundaries set forth in
their merger proceedings as shown by the official files of the
legislative authority of the county in which such merged district is located. All debts, contracts, bonds, and other obligations heretofore executed in connection with or in pursuance
of such attempted organization, and any and all assessments
or levies and all other actions taken by such districts or by
their respective officers acting under such attempted organization, are hereby declared legal and valid and of full force
and effect. Such districts may hereafter exercise their powers
only to the extent permitted by and in accordance with the
provisions of *RCW 56.36.060, as now or hereafter
amended. [1981 c 45 § 8. Formerly RCW 56.36.070.]
*Reviser's note: RCW 56.36.060 was repealed by 1996 c 230 § 1702,
effective July 1, 1997.
Legislative declaration—"District" defined—Severability—1981 c
45: See notes following RCW 36.93.090.
Chapter 57.08
Chapter 57.08 RCW
POWERS
Sections
57.08.005
57.08.007
57.08.009
57.08.011
57.08.012
57.08.014
57.08.015
57.08.016
57.08.017
57.08.020
57.08.030
57.08.035
57.08.040
57.08.044
57.08.047
57.08.050
57.08.060
57.08.065
57.08.070
(2004 Ed.)
Powers.
Concurrent service by two districts.
Use of property not immediately necessary to district for park
or recreational purposes.
Authority to manage, operate, maintain, or repair public or private water system—Contract.
Fluoridation of water authorized.
Authority to adjust or delay rates or charges for low-income
persons—Notice.
Sale of unnecessary property authorized—Notice.
Sale of unnecessary property authorized—Additional requirements for sale of realty.
Application of sections to certain service provider agreements
under chapter 70.150 RCW.
Conveyance of water system to city or town.
Election on conveyance—Contract for operation of facilities.
Effect when city or town takes over portion of water system.
City or town may accept and agree to maintain system.
Contracts for acquisition, use, operation, etc., authorized—
Service to areas in other districts.
Provision of water, sewer, or drainage service beyond district
subject to review by boundary review board.
Contracts for materials and work—Notice—Bids—Small
works roster—Requirements waived, when.
Powers as to street lighting systems—Establishment.
Powers as to mutual systems—Overlapping districts—Operation of system of sewerage or drainage by former water district.
Participation in volunteer fire fighters' relief and pension fund.
57.08.005
57.08.081
57.08.085
57.08.100
57.08.105
57.08.107
57.08.112
57.08.120
57.08.140
57.08.150
57.08.160
57.08.170
57.08.180
57.08.190
Rates and charges—Delinquencies.
Public property subject to rates and charges for drainage facilities.
Health care, group, life, and social security insurance contracts
for employees', commissioners' benefit—Joint action with
other districts.
Liability insurance for officials and employees.
Liability insurance for officers and employees authorized.
Association of commissioners—Association to furnish information to legislature and governor.
Lease of real property—Notice, contents, publication—Performance bond or security.
RCW 39.33.060 to govern on sales by district for park and recreational purposes.
Extensions by private party—Preparation of plans—Review
by district.
Authority to assist customers in the acquisition of water conservation equipment—Limitations.
Water conservation plan—Emergency water use restrictions—
Fine.
Sewer, drainage, and water connections without district permission—Penalties.
Cooperative watershed management.
Lien for labor and materials on public works: Chapter 60.28 RCW.
Special purpose districts, expenditures to recruit job candidates: RCW
42.24.170.
57.08.005
57.08.005 Powers. A district shall have the following
powers:
(1) To acquire by purchase or condemnation, or both, all
lands, property and property rights, and all water and water
rights, both within and without the district, necessary for its
purposes. The right of eminent domain shall be exercised in
the same manner and by the same procedure as provided for
cities and towns, insofar as consistent with this title, except
that all assessment or reassessment rolls to be prepared and
filed by eminent domain commissioners or commissioners
appointed by the court shall be prepared and filed by the district, and the duties devolving upon the city treasurer are
imposed upon the county treasurer;
(2) To lease real or personal property necessary for its
purposes for a term of years for which that leased property
may reasonably be needed;
(3) To construct, condemn and purchase, add to, maintain, and supply waterworks to furnish the district and inhabitants thereof and any other persons, both within and without
the district, with an ample supply of water for all uses and
purposes public and private with full authority to regulate and
control the use, content, distribution, and price thereof in
such a manner as is not in conflict with general law and may
construct, acquire, or own buildings and other necessary district facilities. Where a customer connected to the district's
system uses the water on an intermittent or transient basis, a
district may charge for providing water service to such a customer, regardless of the amount of water, if any, used by the
customer. District waterworks may include facilities which
result in combined water supply and electric generation, if the
electricity generated thereby is a byproduct of the water supply system. That electricity may be used by the district or
sold to any entity authorized by law to use or distribute electricity. Electricity is deemed a byproduct when the electrical
generation is subordinate to the primary purpose of water
supply. For such purposes, a district may take, condemn and
purchase, acquire, and retain water from any public or navigable lake, river or watercourse, or any underflowing water,
and by means of aqueducts or pipeline conduct the same
throughout the district and any city or town therein and carry
[Title 57 RCW—page 9]
57.08.005
Title 57 RCW: Water-Sewer Districts
it along and upon public highways, roads, and streets, within
and without such district. For the purpose of constructing or
laying aqueducts or pipelines, dams, or waterworks or other
necessary structures in storing and retaining water or for any
other lawful purpose such district may occupy the beds and
shores up to the high water mark of any such lake, river, or
other watercourse, and may acquire by purchase or condemnation such property or property rights or privileges as may
be necessary to protect its water supply from pollution. For
the purposes of waterworks which include facilities for the
generation of electricity as a byproduct, nothing in this section may be construed to authorize a district to condemn electric generating, transmission, or distribution rights or facilities of entities authorized by law to distribute electricity, or to
acquire such rights or facilities without the consent of the
owner;
(4) To purchase and take water from any municipal corporation, private person, or entity. A district contiguous to
Canada may contract with a Canadian corporation for the
purchase of water and for the construction, purchase, maintenance, and supply of waterworks to furnish the district and
inhabitants thereof and residents of Canada with an ample
supply of water under the terms approved by the board of
commissioners;
(5) To construct, condemn and purchase, add to, maintain, and operate systems of sewers for the purpose of furnishing the district, the inhabitants thereof, and persons outside the district with an adequate system of sewers for all uses
and purposes, public and private, including but not limited to
on-site sewage disposal facilities, approved septic tanks or
approved septic tank systems, on-site sanitary sewerage systems, inspection services and maintenance services for private and public on-site systems, point and nonpoint water
pollution monitoring programs that are directly related to the
sewerage facilities and programs operated by a district, other
facilities, programs, and systems for the collection, interception, treatment, and disposal of wastewater, and for the control of pollution from wastewater with full authority to regulate the use and operation thereof and the service rates to be
charged. Under this chapter, after July 1, 1998, any requirements for pumping the septic tank of an on-site sewage system should be based, among other things, on actual measurement of accumulation of sludge and scum by a trained inspector, trained owner's agent, or trained owner. Training must
occur in a program approved by the state board of health or
by a local health officer. Sewage facilities may include facilities which result in combined sewage disposal or treatment
and electric generation, except that the electricity generated
thereby is a byproduct of the system of sewers. Such electricity may be used by the district or sold to any entity authorized
by law to distribute electricity. Electricity is deemed a
byproduct when the electrical generation is subordinate to the
primary purpose of sewage disposal or treatment. For such
purposes a district may conduct sewage throughout the district and throughout other political subdivisions within the
district, and construct and lay sewer pipe along and upon
public highways, roads, and streets, within and without the
district, and condemn and purchase or acquire land and rights
of way necessary for such sewer pipe. A district may erect
sewage treatment plants within or without the district, and
may acquire, by purchase or condemnation, properties or
[Title 57 RCW—page 10]
privileges necessary to be had to protect any lakes, rivers, or
watercourses and also other areas of land from pollution from
its sewers or its sewage treatment plant. For the purposes of
sewage facilities which include facilities that result in combined sewage disposal or treatment and electric generation
where the electric generation is a byproduct, nothing in this
section may be construed to authorize a district to condemn
electric generating, transmission, or distribution rights or
facilities of entities authorized by law to distribute electricity,
or to acquire such rights or facilities without the consent of
the owners;
(6)(a) To construct, condemn and purchase, add to,
maintain, and operate systems of drainage for the benefit and
use of the district, the inhabitants thereof, and persons outside
the district with an adequate system of drainage, including
but not limited to facilities and systems for the collection,
interception, treatment, and disposal of storm or surface
waters, and for the protection, preservation, and rehabilitation of surface and underground waters, and drainage facilities for public highways, streets, and roads, with full authority to regulate the use and operation thereof and, except as
provided in (b) of this subsection, the service rates to be
charged.
(b) The rate a district may charge under this section for
storm or surface water sewer systems or the portion of the
rate allocable to the storm or surface water sewer system of
combined sanitary sewage and storm or surface water sewer
systems shall be reduced by a minimum of ten percent for any
new or remodeled commercial building that utilizes a permissive rainwater harvesting system. Rainwater harvesting systems shall be properly sized to utilize the available roof surface of the building. The jurisdiction shall consider rate
reductions in excess of ten percent dependent upon the
amount of rainwater harvested.
(c) Drainage facilities may include natural systems.
Drainage facilities may include facilities which result in combined drainage facilities and electric generation, except that
the electricity generated thereby is a byproduct of the drainage system. Such electricity may be used by the district or
sold to any entity authorized by law to distribute electricity.
Electricity is deemed a byproduct when the electrical generation is subordinate to the primary purpose of drainage collection, disposal, and treatment. For such purposes, a district
may conduct storm or surface water throughout the district
and throughout other political subdivisions within the district, construct and lay drainage pipe and culverts along and
upon public highways, roads, and streets, within and without
the district, and condemn and purchase or acquire land and
rights of way necessary for such drainage systems. A district
may provide or erect facilities and improvements for the
treatment and disposal of storm or surface water within or
without the district, and may acquire, by purchase or condemnation, properties or privileges necessary to be had to
protect any lakes, rivers, or watercourses and also other areas
of land from pollution from storm or surface waters. For the
purposes of drainage facilities which include facilities that
also generate electricity as a byproduct, nothing in this section may be construed to authorize a district to condemn electric generating, transmission, or distribution rights or facilities of entities authorized by law to distribute electricity, or to
(2004 Ed.)
Powers
acquire such rights or facilities without the consent of the
owners;
(7) To construct, condemn, acquire, and own buildings
and other necessary district facilities;
(8) To compel all property owners within the district
located within an area served by the district's system of sewers to connect their private drain and sewer systems with the
district's system under such penalty as the commissioners
shall prescribe by resolution. The district may for such purpose enter upon private property and connect the private
drains or sewers with the district system and the cost thereof
shall be charged against the property owner and shall be a
lien upon property served;
(9) Where a district contains within its borders, abuts, or
is located adjacent to any lake, stream, ground water as
defined by RCW 90.44.035, or other waterway within the
state of Washington, to provide for the reduction, minimization, or elimination of pollutants from those waters in accordance with the district's comprehensive plan, and to issue
general obligation bonds, revenue bonds, local improvement
district bonds, or utility local improvement bonds for the purpose of paying all or any part of the cost of reducing, minimizing, or eliminating the pollutants from these waters;
(10) Subject to subsection (6) of this section, to fix rates
and charges for water, sewer, and drain service supplied and
to charge property owners seeking to connect to the district's
systems, as a condition to granting the right to so connect, in
addition to the cost of the connection, such reasonable connection charge as the board of commissioners shall determine
to be proper in order that those property owners shall bear
their equitable share of the cost of the system. For the purposes of calculating a connection charge, the board of commissioners shall determine the pro rata share of the cost of
existing facilities and facilities planned for construction
within the next ten years and contained in an adopted comprehensive plan and other costs borne by the district which
are directly attributable to the improvements required by
property owners seeking to connect to the system. The cost
of existing facilities shall not include those portions of the
system which have been donated or which have been paid for
by grants. The connection charge may include interest
charges applied from the date of construction of the system
until the connection, or for a period not to exceed ten years,
whichever is shorter, at a rate commensurate with the rate of
interest applicable to the district at the time of construction or
major rehabilitation of the system, or at the time of installation of the lines to which the property owner is seeking to
connect. In lieu of requiring the installation of permanent
local facilities not planned for construction by the district, a
district may permit connection to the water and/or sewer systems through temporary facilities installed at the property
owner's expense, provided the property owner pays a connection charge consistent with the provisions of this chapter and
agrees, in the future, to connect to permanent facilities when
they are installed; or a district may permit connection to the
water and/or sewer systems through temporary facilities and
collect from property owners so connecting a proportionate
share of the estimated cost of future local facilities needed to
serve the property, as determined by the district. The amount
collected, including interest at a rate commensurate with the
rate of interest applicable to the district at the time of con(2004 Ed.)
57.08.005
struction of the temporary facilities, shall be held for contribution to the construction of the permanent local facilities by
other developers or the district. The amount collected shall
be deemed full satisfaction of the proportionate share of the
actual cost of construction of the permanent local facilities.
If the permanent local facilities are not constructed within fifteen years of the date of payment, the amount collected,
including any accrued interest, shall be returned to the property owner, according to the records of the county auditor on
the date of return. If the amount collected is returned to the
property owner, and permanent local facilities capable of
serving the property are constructed thereafter, the property
owner at the time of construction of such permanent local
facilities shall pay a proportionate share of the cost of such
permanent local facilities, in addition to reasonable connection charges and other charges authorized by this section. A
district may permit payment of the cost of connection and the
reasonable connection charge to be paid with interest in
installments over a period not exceeding fifteen years. The
county treasurer may charge and collect a fee of three dollars
for each year for the treasurer's services. Those fees shall be
a charge to be included as part of each annual installment, and
shall be credited to the county current expense fund by the
county treasurer. Revenues from connection charges excluding permit fees are to be considered payments in aid of construction as defined by department of revenue rule. Rates or
charges for on-site inspection and maintenance services may
not be imposed under this chapter on the development, construction, or reconstruction of property.
Before adopting on-site inspection and maintenance utility services, or incorporating residences into an on-site
inspection and maintenance or sewer utility under this chapter, notification must be provided, prior to the applicable public hearing, to all residences within the proposed service area
that have on-site systems permitted by the local health
officer. The notice must clearly state that the residence is
within the proposed service area and must provide information on estimated rates or charges that may be imposed for the
service.
A water-sewer district shall not provide on-site sewage
system inspection, pumping services, or other maintenance or
repair services under this section using water-sewer district
employees unless the on-site system is connected by a publicly owned collection system to the water-sewer district's
sewerage system, and the on-site system represents the first
step in the sewage disposal process.
Except as otherwise provided in RCW 90.03.525, any
public entity and public property, including the state of
Washington and state property, shall be subject to rates and
charges for sewer, water, storm water control, drainage, and
street lighting facilities to the same extent private persons and
private property are subject to those rates and charges that are
imposed by districts. In setting those rates and charges, consideration may be made of in-kind services, such as stream
improvements or donation of property;
(11) To contract with individuals, associations and corporations, the state of Washington, and the United States;
(12) To employ such persons as are needed to carry out
the district's purposes and fix salaries and any bond requirements for those employees;
[Title 57 RCW—page 11]
57.08.007
Title 57 RCW: Water-Sewer Districts
(13) To contract for the provision of engineering, legal,
and other professional services as in the board of commissioner's discretion is necessary in carrying out their duties;
(14) To sue and be sued;
(15) To loan and borrow funds and to issue bonds and
instruments evidencing indebtedness under chapter 57.20
RCW and other applicable laws;
(16) To transfer funds, real or personal property, property interests, or services subject to RCW 57.08.015;
(17) To levy taxes in accordance with this chapter and
chapters 57.04 and 57.20 RCW;
(18) To provide for making local improvements and to
levy and collect special assessments on property benefitted
thereby, and for paying for the same or any portion thereof in
accordance with chapter 57.16 RCW;
(19) To establish street lighting systems under RCW
57.08.060;
(20) To exercise such other powers as are granted to
water-sewer districts by this title or other applicable laws;
and
(21) To exercise any of the powers granted to cities and
counties with respect to the acquisition, construction, maintenance, operation of, and fixing rates and charges for waterworks and systems of sewerage and drainage. [2004 c 202 §
1; 2003 c 394 § 5; 1999 c 153 § 2; 1997 c 447 § 16; 1996 c
230 § 301.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Finding—Purpose—1997 c 447: See note following RCW 70.05.074.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
water system that is to be so managed, operated, maintained,
or repaired.
A district shall be liable to provide the services provided
in such a contract only if the required contractual payments
are made to the district, and such payments shall be secured
by a lien on the property served by the water system to the
same extent that rates and charges imposed by the district
constitute liens on the property served by the district. The
responsibility for all costs incurred by the water system in
complying with water quality laws, regulations, and standards shall be solely that of the water system and not the district, except to the extent payments have been made to the
district for the costs of such compliance.
A district periodically may transfer to another account
surplus moneys that may accumulate in an account established by the district to receive payments for the provision of
services for such a water system. [1996 c 230 § 303; 1989 c
308 § 14.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.08.012
57.08.012 Fluoridation of water authorized. A water
district by a majority vote of its board of commissioners may
fluoridate the water supply system of the water district. The
commissioners may cause the proposition of fluoridation of
the water supply to be submitted to the electors of the water
district at any general election or special election to be called
for the purpose of voting on the proposition. The proposition
must be approved by a majority of the electors voting on the
proposition to become effective. [1988 c 11 § 2.]
57.08.014
57.08.007 Concurrent service by two districts.
Except upon approval of both districts by resolution, a district
may not provide a service within an area in which that service
is available from another district or within an area in which
that service is planned to be made available under an effective comprehensive plan of another district. [1996 c 230 §
302.]
57.08.007
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.08.009 Use of property not immediately necessary
to district for park or recreational purposes. A district
may operate and maintain a park or recreational facilities on
real property that it owns or in which it has an interest that is
not immediately necessary for its purposes.
If such park or recreational facilities are operated by a
person other than the district, including a corporation, partnership, or other business enterprise, the person shall indemnify and hold harmless the district for any injury or damage
caused by the action of the person. [1991 c 82 § 3. Formerly
RCW 56.08.170.]
57.08.009
57.08.011
57.08.011 Authority to manage, operate, maintain, or
repair public or private water system—Contract. A district may enter into a contract with any person, corporation,
or other entity, public or private, that owns a water system
located in the district to manage, operate, maintain, or repair
the water system. Such a contract may be entered into only if
the general comprehensive plan of the district reflects the
[Title 57 RCW—page 12]
57.08.014 Authority to adjust or delay rates or
charges for low-income persons—Notice. In addition to
the authority of a district to establish classifications for rates
and charges and impose such rates and charges, a district may
adjust or delay those rates and charges for low-income persons or classes of low-income persons, including but not limited to, low-income handicapped persons and low-income
senior citizens. Other financial assistance available to lowincome persons shall be considered in determining charges
and rates under this section. Notification of special rates or
charges established under this section shall be provided to all
persons served by the district annually and upon initiating
service. Information on cost shifts caused by establishment of
the special rates or charges shall be included in the notification. Any reduction in charges and rates granted to lowincome persons in one part of a service area shall be uniformly extended to low-income persons in all other parts of
the service area. [1999 c 153 § 3; 1996 c 230 § 304; 1983 c
198 § 2.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Severability—1983 c 198: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1983 c 198 § 3.]
57.08.015
57.08.015 Sale of unnecessary property authorized—
Notice. The board of commissioners of a district may sell, at
(2004 Ed.)
Powers
public or private sale, property belonging to the district if the
board determines that the property is not and will not be
needed for district purposes and if the board gives notice of
intention to sell as in this section provided. However, no such
notice of intention shall be required to sell personal property
of less than two thousand five hundred dollars in value.
The notice of intention to sell shall be published once a
week for two consecutive weeks in a newspaper of general
circulation in the district. The notice shall describe the property and state the time and place at which it will be sold or
offered for sale, the terms of sale, whether the property is to
be sold at public or private sale, and if at public sale the notice
shall call for bids, fix the conditions of the bids and reserve
the right to reject any and all bids for good cause. [1999 c
153 § 4; 1996 c 230 § 305; 1993 c 198 § 19; 1989 c 308 § 7;
1977 ex.s. c 299 § 2; 1953 c 50 § 1.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.08.016
57.08.016 Sale of unnecessary property authorized—
Additional requirements for sale of realty. (1) There shall
be no private sale of real property where the appraised value
exceeds the sum of two thousand five hundred dollars. Subject to the provisions of subsection (2) of this section, no real
property of the district shall be sold for less than ninety percent of the value thereof as established by a written appraisal
made not more than six months prior to the date of sale by
three disinterested real estate brokers licensed under the laws
of the state or professionally designated real estate appraisers
as defined in RCW 74.46.020. The appraisal shall be signed
by the appraisers and filed with the secretary of the board of
commissioners of the district, who shall keep it at the office
of the district open to public inspection. Any notice of intention to sell real property of the district shall recite the
appraised value thereof.
(2) If no purchasers can be obtained for the property at
ninety percent or more of its appraised value after one hundred twenty days of offering the property for sale, the board
of commissioners of the district may adopt a resolution stating that the district has been unable to sell the property at the
ninety percent amount. The district then may sell the property
at the highest price it can obtain at public auction. A notice of
intention to sell at public auction shall be published once a
week for two consecutive weeks in a newspaper of general
circulation in the district. The notice shall describe the property, state the time and place at which it will be offered for
sale and the terms of sale, and shall call for bids, fix the conditions thereof, and reserve the right to reject any and all bids
for good cause. [1999 c 153 § 5; 1996 c 230 § 306; 1993 c
198 § 20; 1989 c 308 § 8; 1988 c 162 § 2; 1984 c 103 § 3;
1953 c 50 § 2.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.08.017
57.08.017 Application of sections to certain service
provider agreements under chapter 70.150 RCW. RCW
57.08.015, 57.08.016, 57.08.050, and 57.08.120 shall not
(2004 Ed.)
57.08.030
apply to agreements entered into under authority of chapter
70.150 RCW if there is compliance with the procurement
procedure under RCW 70.150.040. [1996 c 230 § 321; 1986
c 244 § 16.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Severability—1986 c 244: See RCW 70.150.905.
57.08.020 Conveyance of water system to city or
town. That water districts duly organized under the laws of
the state of Washington shall have the following powers in
addition to those conferred by existing statutes. Whenever
any water district shall have installed a distributing system of
mains and laterals and as a source of supply of water shall be
purchasing or intending to purchase water from any city or
town, and whenever it shall appear to be advantageous to the
water consumers in said water district that such city or town
shall take over the water system of the water district and supply water to the said water users, the commissioners of said
water district, upon being authorized as provided in RCW
57.08.030, shall have the right to convey such distributing
system to any such city or town: PROVIDED, Such city or
town is willing to accept, maintain and repair the same:
PROVIDED, FURTHER, That all bonded and other indebtedness of said water district except local improvement district bonds shall have been paid. [1933 c 142 § 1; RRS §
11586-1.]
57.08.020
57.08.030 Election on conveyance—Contract for
operation of facilities. (1) Whenever any district shall have
installed a distributing system of water mains and laterals,
and as a source of supply of water shall be purchasing or
intending to purchase water from any city or town, and whenever it appears to be advantageous to the water consumers in
the district that such city or town shall take over the water
system of the district and supply water to those water users,
the commissioners of the district, when authorized as provided in subsection (2) of this section, shall have the right to
convey the distributing system to that city or town if that city
or town is willing to accept, maintain, and repair the same.
(2) Should the commissioners of the district decide that
it would be to the advantage of the water consumers of the
district to make the conveyance provided for in subsection
(1) of this section, they shall cause the proposition of making
that conveyance to be submitted to the voters of the district at
any general election or at a special election to be called for
the purpose of voting on the same. If at the election a majority
of the voters voting on the proposition shall be in favor of
making the conveyance, the district commissioners shall
have the right to convey to the city or town the mains and laterals belonging to the district upon the city or town entering
into a contract satisfactory to the commissioners to maintain
and repair the same.
(3) Whenever a city or town located wholly or in part
within a district shall enter into a contract with the commissioners of a district providing that the city or town shall take
over all of the operation of the water supply facilities of the
district located within its boundaries, the area of the district
located within the city or town shall upon the execution of the
contract cease to be served by the district for water service
purposes. However, the affected land within that city or town
57.08.030
[Title 57 RCW—page 13]
57.08.035
Title 57 RCW: Water-Sewer Districts
shall remain liable for the payment of all assessments, any
lien upon the property at the time of the execution of the
agreement, and for any lien of all general obligation bonds
due at the date of the contract, and the city or town shall
remain liable for its fair prorated share of the debt of the area
for any revenue bonds, outstanding as of the date of contract.
[1999 c 153 § 6; 1996 c 230 § 307; 1933 c 142 § 2; RRS §
11586-2.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Legislative declaration—"District" defined—Severability—1981 c
45: See notes following RCW 36.93.090.
Severability—1959 c 103: "If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act,
or the application of the provision to other persons or circumstances is not
affected." [1959 c 103 § 19.]
Water-sewer districts and municipalities, joint agreements: RCW
35.67.300.
57.08.047
57.08.035
57.08.035 Effect when city or town takes over portion
of water system. Whenever a city or town located wholly or
in part within a water district shall enter into a contract with
the commissioners of a water district providing that the city
or town shall take over all of the operation of the facilities of
the district located within its boundaries, such area of said
water district located within said city or town shall upon the
execution of said contract cease to be a part of said water district and the inhabitants therein shall no longer be permitted
to vote in said water district. The land, however, within such
city or town shall remain liable for the payment of all assessments, any lien upon said property at the time of the execution of said agreement and for any lien of all general obligation bonds due at the date of said contract, and the city shall
remain liable for its fair prorated share of the debt of the area
for any revenue bonds outstanding as of said date of contract.
[1971 ex.s. c 272 § 13.]
57.08.040
57.08.040 City or town may accept and agree to
maintain system. Whenever any city or town is selling or
proposes to sell water to a district, the city or town may by
ordinance accept a conveyance of any distributing system
and enter into a contract with the district for the maintenance
and repair of the system and the supplying of water to the district consumers. [1996 c 230 § 308; 1933 c 142 § 3; RRS §
11586-3.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.08.044
57.08.044 Contracts for acquisition, use, operation,
etc., authorized—Service to areas in other districts. A
district may enter into contracts with any county, city, town,
or any other municipal or quasi-municipal corporation, or
with any private person or corporation, for the acquisition,
ownership, use, and operation of any property, facilities, or
services, within or without the district, and necessary or
desirable to carry out the purposes of the district. A district
may provide water, sewer, drainage, or street lighting services to property owners in areas within or without the limits
of the district, except that if the area to be served is located
within another existing district duly authorized to exercise
district powers in that area, then water, sewer, drainage, or
street lighting service may not be so provided by contract or
otherwise without the consent by resolution of the board of
commissioners of that other district. [1999 c 153 § 7; 1996 c
230 § 309; 1981 c 45 § 4; 1959 c 103 § 3; 1953 c 250 § 8;
1941 c 210 § 48; Rem. Supp. 1941 § 9425-57. Formerly
RCW 56.08.060.]
[Title 57 RCW—page 14]
57.08.047 Provision of water, sewer, or drainage service beyond district subject to review by boundary review
board. The provision of water, sewer, or drainage service
beyond the boundaries of a district may be subject to potential review by a boundary review board under chapter 36.93
RCW. [1999 c 153 § 8; 1996 c 230 § 310; 1989 c 84 § 57.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.08.050
57.08.050 Contracts for materials and work—
Notice—Bids—Small works roster—Requirements
waived, when. (1) All work ordered, the estimated cost of
which is in excess of ten thousand dollars, shall be let by contract and competitive bidding. Before awarding any such
contract the board of commissioners shall publish a notice in
a newspaper of general circulation where the district is
located at least once thirteen days before the last date upon
which bids will be received, inviting sealed proposals for
such work, plans and specifications which must at the time of
publication of such notice be on file in the office of the board
of commissioners subject to the public inspection. The notice
shall state generally the work to be done and shall call for
proposals for doing the same to be sealed and filed with the
board of commissioners on or before the day and hour named
therein.
Each bid shall be accompanied by a certified or cashier's
check or postal money order payable to the order of the
county treasurer for a sum not less than five percent of the
amount of the bid, or accompanied by a bid bond in an
amount not less than five percent of the bid with a corporate
surety licensed to do business in the state, conditioned that
the bidder will pay the district as liquidated damages the
amount specified in the bond, unless the bidder enters into a
contract in accordance with the bidder's bid, and no bid shall
be considered unless accompanied by such check, cash or bid
bond. At the time and place named such bids shall be publicly opened and read and the board of commissioners shall
proceed to canvass the bids and may let such contract to the
lowest responsible bidder upon plans and specifications on
file or to the best bidder submitting the bidder's own plans
and specifications. The board of commissioners may reject
all bids for good cause and readvertise and in such case all
checks, cash or bid bonds shall be returned to the bidders. If
the contract is let, then all checks, cash, or bid bonds shall be
returned to the bidders, except that of the successful bidder,
which shall be retained until a contract shall be entered into
for doing the work, and a bond to perform such work fur(2004 Ed.)
Powers
nished with sureties satisfactory to the board of commissioners in the full amount of the contract price between the bidder
and the commission in accordance with the bid. If the bidder
fails to enter into the contract in accordance with the bid and
furnish the bond within ten days from the date at which the
bidder is notified that the bidder is the successful bidder, the
check, cash, or bid bonds and the amount thereof shall be forfeited to the district. If the bidder fails to enter into a contract
in accordance with the bidder's bid, and the board of commissioners deems it necessary to take legal action to collect on
any bid bond required by this section, then the district shall be
entitled to collect from the bidder any legal expenses, including reasonable attorneys' fees occasioned thereby. A low bidder who claims error and fails to enter into a contract is prohibited from bidding on the same project if a second or subsequent call for bids is made for the project.
(2) As an alternative to requirements under subsection
(1) of this section, a water-sewer district may let contracts
using the small works roster process under RCW 39.04.155.
(3) Any purchase of materials, supplies, or equipment,
with an estimated cost in excess of ten thousand dollars, shall
be by contract. Any purchase of materials, supplies, or
equipment, with an estimated cost of less than fifty thousand
dollars shall be made using the process provided in RCW
39.04.190. Any purchase of materials, supplies, or equipment with an estimated cost of fifty thousand dollars or more
shall be made by competitive bidding following the procedure for letting contracts for projects under subsection (1) of
this section.
(4) As an alternative to requirements under subsection
(3) of this section, a water-sewer district may let contracts for
purchase of materials, supplies, or equipment with the suppliers designated on current state agency, county, city, or town
purchasing rosters for the materials, supplies, or equipment,
when the roster has been established in accordance with the
competitive bidding law for purchases applicable to the state
agency, county, city, or town. The price and terms for purchases shall be as described on the applicable roster.
(5) The board may waive the competitive bidding
requirements of this section pursuant to RCW 39.04.280 if an
exemption contained within that section applies to the purchase or public work. [2003 c 145 § 1; 2003 c 60 § 1; 2000 c
138 § 212; 1999 c 153 § 9; 1998 c 278 § 8; 1997 c 245 § 4.
Prior: 1996 c 230 § 311; 1996 c 18 § 14; 1994 c 31 § 2; prior:
1993 c 198 § 21; 1993 c 45 § 8; 1989 c 105 § 2; 1987 c 309 §
2; 1985 c 154 § 2; 1983 c 38 § 2; 1979 ex.s. c 137 § 2; 1975
1st ex.s. c 64 § 2; 1965 c 72 § 1; 1947 c 216 § 2; 1929 c 114
§ 21; Rem. Supp. 1947 § 11598. Cf. 1913 c 161 § 20.]
Reviser's note: This section was amended by 2003 c 60 § 1 and by
2003 c 145 § 1, each without reference to the other. Both amendments are
incorporated in the publication of this section under RCW 1.12.025(2). For
rule of construction, see RCW 1.12.025(1).
Purpose—Part headings not law—2000 c 138: See notes following
RCW 39.04.155.
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.08.060
57.08.060 Powers as to street lighting systems—
Establishment. In addition to the powers given districts by
(2004 Ed.)
57.08.065
law, a district shall also have power to acquire, construct,
maintain, operate, and develop street lighting systems.
To establish a street lighting system, the board of commissioners shall adopt a resolution proposing a street lighting
system and delineating the boundaries of the area to be served
by the proposed street lighting system. The board shall conduct a public hearing on the resolution to create a street lighting system. Notice of the hearing shall be published at least
once each week for two consecutive weeks in one or more
newspapers of general circulation in the area to be served by
the proposed street lighting system. Following the hearing,
the board may by resolution establish the street lighting system.
A street lighting system shall not be established if,
within thirty days following the decision of the board, a petition opposing the street lighting system is filed with the board
and contains the signatures of at least forty percent of the voters registered in the area to be served by the proposed system.
The district has the same powers of imposing charges for
providing street lighting, collecting delinquent street lighting
charges, and financing street lighting systems by issuing general obligation bonds, issuing revenue bonds, and creating
improvement districts as it has for imposing charges for providing water, collecting delinquent water service charges,
and financing water systems by issuing general obligation
bonds, issuing revenue bonds, and creating improvement districts. [1996 c 230 § 312; 1987 c 449 § 11; 1982 c 105 § 1;
1941 c 68 § 1; Rem. Supp. 1941 § 11604-12.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.08.065
57.08.065 Powers as to mutual systems—Overlapping districts—Operation of system of sewerage or drainage by former water district. (1) A district shall have
power to establish, maintain, and operate a mutual water,
sewerage, drainage, and street lighting system, a mutual system of any two or three of the systems, or separate systems.
(2) Where any two or more districts include the same territory as of July 1, 1997, none of the overlapping districts
may provide any service that was made available by any of
the other districts prior to July 1, 1997, within the overlapping territory without the consent by resolution of the board
of commissioners of the other district or districts.
(3) A district that was a water district prior to July 1,
1997, that did not operate a system of sewerage or drainage
prior to July 1, 1997, may not proceed to exercise the powers
to establish, maintain, construct, and operate any system of
sewerage or drainage without first obtaining written approval
and certification of necessity from the department of ecology
and department of health. Any comprehensive plan for a system of sewers or drainages or addition thereto or betterment
thereof, proposed by a district that was a water district prior
to July 1, 1997, shall be approved by the same county and
state officials as were required to approve such plans adopted
by a sewer district immediately prior to July 1, 1997, and as
subsequently may be required. [1999 c 153 § 10; 1997 c 447
§ 17; 1996 c 230 § 313; 1981 c 45 § 11; 1979 c 141 § 69; 1967
ex.s. c 135 § 3; 1963 c 111 § 1.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Finding—Purpose—1997 c 447: See note following RCW 70.05.074.
[Title 57 RCW—page 15]
57.08.070
Title 57 RCW: Water-Sewer Districts
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Legislative declaration—"District" defined—Severability—1981 c
45: See notes following RCW 36.93.090.
57.08.070
57.08.070 Participation in volunteer fire fighters'
relief and pension fund. See chapter 41.24 RCW.
57.08.081
57.08.081 Rates and charges—Delinquencies. (1)
Subject to RCW 57.08.005(6), the commissioners of any district shall provide for revenues by fixing rates and charges for
furnishing sewer and drainage service and facilities to those
to whom service is available or for providing water, such
rates and charges to be fixed as deemed necessary by the
commissioners, so that uniform charges will be made for the
same class of customer or service and facility. Rates and
charges may be combined for the furnishing of more than one
type of sewer or drainage service and facilities.
(2) In classifying customers of such water, sewer, or
drainage system, the board of commissioners may in its discretion consider any or all of the following factors: The difference in cost to various customers; the location of the various customers within and without the district; the difference
in cost of maintenance, operation, repair, and replacement of
the various parts of the system; the different character of the
service furnished various customers; the quantity and quality
of the service and facility furnished; the time of its use; the
achievement of water conservation goals and the discouragement of wasteful practices; capital contributions made to the
system including but not limited to assessments; and any
other matters which present a reasonable difference as a
ground for distinction. Rates shall be established as deemed
proper by the commissioners and as fixed by resolution and
shall produce revenues sufficient to take care of the costs of
maintenance and operation, revenue bond and warrant interest and principal amortization requirements, and all other
charges necessary for efficient and proper operation of the
system. Prior to furnishing services, a district may require a
deposit to guarantee payment for services. However, failure
to require a deposit does not affect the validity of any lien
authorized by this section.
(3) The commissioners shall enforce collection of connection charges, and rates and charges for water supplied
against property owners connecting with the system or
receiving such water, and for sewer and drainage services
charged against property to which and its owners to whom
the service is available, such charges being deemed charges
against the property served, by addition of penalties of not
more than ten percent thereof in case of failure to pay the
charges at times fixed by resolution. The commissioners may
provide by resolution that where either connection charges or
rates and charges for services supplied are delinquent for any
specified period of time, the district shall certify the delinquencies to the auditor of the county in which the real property is located, and the charges and any penalties added
thereto and interest thereon at the rate of not more than the
prime lending rate of the district's bank plus four percentage
points per year shall be a lien against the property upon which
the service was received, subject only to the lien for general
taxes.
[Title 57 RCW—page 16]
(4) The district may, at any time after the connection
charges or rates and charges for services supplied or available
and penalties are delinquent for a period of sixty days, bring
suit in foreclosure by civil action in the superior court of the
county in which the real property is located. The court may
allow, in addition to the costs and disbursements provided by
statute, attorneys' fees, title search and report costs, and
expenses as it adjudges reasonable. The action shall be in
rem, and may be brought in the name of the district against an
individual or against all of those who are delinquent in one
action. The laws and rules of the court shall control as in
other civil actions.
(5) In addition to the right to foreclose provided in this
section, the district may also cut off all or part of the service
after charges for water or sewer service supplied or available
are delinquent for a period of thirty days.
(6) A district may determine how to apply partial payments on past due accounts.
(7) A district may provide a real property owner or the
owner's designee with duplicate bills for service to tenants, or
may notify an owner or the owner's designee that a tenant's
service account is delinquent. However, if an owner or the
owner's designee notifies the district in writing that a property served by the district is a rental property, asks to be notified of a tenant's delinquency, and has provided, in writing, a
complete and accurate mailing address, the district shall
notify the owner or the owner's designee of a tenant's delinquency at the same time and in the same manner the district
notifies the tenant of the tenant's delinquency or by mail.
When a district provides a real property owner or the owner's
designee with duplicates of tenant utility service bills or
notice that a tenant's utility account is delinquent, the district
shall notify the tenant that it is providing the duplicate bills or
delinquency notice to the owner or the owner's designee.
After January 1, 1999, if a district fails to notify the owner of
a tenant's delinquency after receiving a written request to do
so and after receiving the other information required by this
subsection (7), the district shall have no lien against the premises for the tenant's delinquent and unpaid charges. [2003 c
394 § 6; 1999 c 153 § 11. Prior: 1998 c 285 § 2; 1998 c 106
§ 9; 1997 c 447 § 19; 1996 c 230 § 314.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Finding—Purpose—1997 c 447: See note following RCW 70.05.074.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Assessments and charges against state lands: Chapter 79.44 RCW.
57.08.085
57.08.085 Public property subject to rates and
charges for drainage facilities. Except as otherwise provided in RCW 90.03.525, any public entity and public property, including state of Washington property, shall be subject
to rates and charges for drainage facilities to the same extent
as private persons and private property are subject to such
rates and charges that are imposed by districts pursuant to
RCW 57.08.005 or 57.08.081. In setting those rates and
charges, consideration may be given to in-kind services, such
as stream improvements or donation of property. [1999 c 153
§ 12; 1996 c 230 § 315; 1986 c 278 § 59; 1983 c 315 § 5. Formerly RCW 56.08.012.]
(2004 Ed.)
Powers
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Severability—1986 c 278: See note following RCW 36.01.010.
Severability—1983 c 315: See note following RCW 90.03.500.
Flood control zone districts—Storm water control improvements: Chapter
86.15 RCW.
Rates and charges for storm water control facilities—Limitations—Definitions: RCW 90.03.500 through 90.03.525. See also RCW 35.67.025,
35.92.021, 36.89.085, and 36.94.145.
57.08.100
57.08.100 Health care, group, life, and social security
insurance contracts for employees', commissioners' benefit—Joint action with other districts. Subject to chapter
48.62 RCW, a district, by a majority vote of its board of commissioners, may enter into contracts to provide health care
services and/or group insurance and/or term life insurance
and/or social security insurance for the benefit of its employees and may pay all or any part of the cost thereof. Any two
or more districts, by a majority vote of their respective boards
of commissioners, may, if deemed expedient, join in the procuring of such health care services and/or group insurance
and/or term life insurance, and the board of commissioners of
a participating district may by appropriate resolution authorize its respective district to pay all or any portion of the cost
thereof.
A district with five thousand or more customers providing health, group, or life insurance to its employees may provide its commissioners with the same coverage. However, the
per person amounts for such insurance paid by the district
shall not exceed the per person amounts paid by the district
for its employees. [1996 c 230 § 316; 1991 sp.s. c 30 § 25;
1991 c 82 § 5; 1981 c 190 § 6; 1973 c 24 § 2; 1961 c 261 § 2.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Effective date, implementation, application—Severability—1991
sp.s. c 30: See RCW 48.62.900 and 48.62.901.
Hospitalization and medical insurance authorized: RCW 41.04.180.
Hospitalization and medical insurance not deemed additional compensation: RCW 41.04.190.
57.08.105
57.08.105 Liability insurance for officials and
employees. The board of commissioners of each district may
purchase liability insurance with such limits as it may deem
reasonable for the purpose of protecting its officials and
employees against liability for personal or bodily injuries and
property damage arising from their acts or omissions while
performing or in good faith purporting to perform their official duties. [1996 c 230 § 317; 1973 c 125 § 7.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.08.107
57.08.107 Liability insurance for officers and
employees authorized. See RCW 36.16.138.
57.08.112
57.08.112 Association of commissioners—Association to furnish information to legislature and governor.
See RCW 44.04.170.
(2004 Ed.)
57.08.140
57.08.120
57.08.120 Lease of real property—Notice, contents,
publication—Performance bond or security. A district
may lease out real property which it owns or in which it has
an interest and which is not immediately necessary for its
purposes upon such terms as the board of commissioners
deems proper. No such lease shall be made until the district
has first caused notice thereof to be published twice in a
newspaper in general circulation in the district, the first publication to be at least fifteen days and the second at least
seven days prior to the making of such lease. The notice shall
describe the property, the lessee, and the lease payments. A
hearing shall be held pursuant to the terms of the notice, at
which time any and all persons who may be interested shall
have the right to appear and to be heard.
No such lease shall be made unless secured by a bond
conditioned on the performance of the terms of the lease,
with surety satisfactory to the commissioners and with a penalty of not less than one-sixth of the term of the lease or for
one year's rental, whichever is greater.
No such lease shall be made for a term longer than
twenty-five years. In cases involving leases of more than five
years, the commissioners may provide for or stipulate to
acceptance of a bond conditioned on the performance of a
part of the term for five years or more whenever it is further
provided that the lessee must procure and deliver to the commissioners renewal bonds with like terms and conditions no
more than two years prior nor less than one year prior to the
expiration of such bond during the entire term of the lease.
However, no such bond shall be construed to secure the furnishing of any other bond by the same surety or indemnity
company. The board of commissioners may require a reasonable security deposit in lieu of a bond on leased property
owned by a district.
The commissioners may accept as surety on any bond
required by this section an approved surety company, or may
accept in lieu thereof a secured interest in property of a value
at least twice the amount of the bond required, conditioned
further that in the event the commissioners determine that the
value of the bond security has become or is about to become
impaired, additional security shall be required from the lessee.
The authority granted under this section shall not be
exercised by the board of commissioners unless the property
is declared by resolution of the board of commissioners to be
property for which there is a future need by the district and
for the use of which provision is made in the comprehensive
plan of the district as the same may be amended from time to
time. [1996 c 230 § 319; 1991 c 82 § 6; 1967 ex.s. c 135 § 1.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.08.140
57.08.140 RCW 39.33.060 to govern on sales by district for park and recreational purposes. The provisions
of RCW 57.08.015, 57.08.016, and 57.08.120 shall have no
application as to the sale or conveyance of real or personal
property or any interest or right therein by a district to the
county or park and recreation district wherein such property
is located for park and recreational purposes, but in those
cases the provisions of RCW 39.33.060 shall govern. [1996
c 230 § 320; 1971 ex.s. c 243 § 8.]
[Title 57 RCW—page 17]
57.08.150
Title 57 RCW: Water-Sewer Districts
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Intent—Contingent effective date—1989 c 421: See notes following
RCW 35.92.017.
Severability—1971 ex.s. c 243: See RCW 84.34.920.
57.08.170
57.08.150
57.08.150 Extensions by private party—Preparation
of plans—Review by district. A district may not require
that a specified engineer prepare plans or designs for extensions to its systems if the extensions are to be financed and
constructed by a private party, but may review, and approve
or reject, the plans or designs which have been prepared for
such a private party based upon standards and requirements
established by the district. [1996 c 230 § 323; 1987 c 309 §
4.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.08.160
57.08.160 Authority to assist customers in the acquisition of water conservation equipment—Limitations.
Any district is hereby authorized, within limits established by
the Constitution of the state of Washington, to assist the owners of structures in financing the acquisition and installation
of fixtures, systems, and equipment, for compensation or otherwise, for the conservation or more efficient use of water in
the structures under a water conservation plan adopted by the
district if the cost per unit of water saved or conserved by the
use of the fixtures, systems, and equipment is less than the
cost per unit of water supplied by the next least costly new
water source available to the district to meet future demand.
Except where otherwise authorized, assistance shall be limited to:
(1) Providing an inspection of the structure, either
directly or through one or more inspectors under contract, to
determine and inform the owner of the estimated cost of purchasing and installing conservation fixtures, systems, and
equipment for which financial assistance will be approved
and the estimated life cycle savings to the water system and
the consumer that are likely to result from the installation of
the fixtures, systems, or equipment;
(2) Providing a list of businesses that sell and install the
fixtures, systems, and equipment within or in close proximity
to the service area of the city or town, each of which businesses shall have requested to be included and shall have the
ability to provide the products in a workmanlike manner and
to utilize the fixtures, systems, and equipment in accordance
with the prevailing national standards;
(3) Arranging to have approved conservation fixtures,
systems, and equipment installed by a private contractor
whose bid is acceptable to the owner of the structure and verifying the installation; and
(4) Arranging or providing financing for the purchase
and installation of approved conservation fixtures, systems,
and equipment. The fixtures, systems, and equipment shall be
purchased or installed by a private business, the owner, or the
utility.
Pay back shall be in the form of incremental additions to
the utility bill, billed either together with the use charge or
separately. Loans shall not exceed one hundred twenty
months in length. [1996 c 230 § 324; 1989 c 421 § 5.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
[Title 57 RCW—page 18]
57.08.170 Water conservation plan—Emergency
water use restrictions—Fine. A district may adopt a water
conservation plan and emergency water use restrictions. The
district may enforce a water conservation plan and emergency water use restrictions by imposing a fine as provided
by resolution for failure to comply with any such plan or
restrictions. The commissioners may provide by resolution
that if a fine for failure to comply with the water conservation
plan or emergency water use restrictions is delinquent for a
specified period of time, the district shall certify the delinquency to the treasurer of the county in which the real property is located and serve notice of the delinquency on the subscribing water customer who fails to comply, and the fine is
then a separate item for inclusion on the bill of the party failing to comply with the water conservation plan or emergency
water use restrictions. [1996 c 230 § 325; 1991 c 82 § 7.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.08.180
57.08.180 Sewer, drainage, and water connections
without district permission—Penalties. It is unlawful and
a misdemeanor to make, or cause to be made, or to maintain
any connection with any sewer, drainage, or water system of
any district, or with any sewer, drainage, or water system
which is connected directly or indirectly with any sewer,
drainage, or water system of any district without having permission from the district. [1999 c 153 § 14; 1996 c 230 §
322; 1995 c 376 § 15; 1991 c 190 § 5.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Findings—1995 c 376: See note following RCW 70.116.060.
57.08.190
57.08.190 Cooperative watershed management. In
addition to the authority provided in RCW 57.08.005, a water
district, sewer district, or water-sewer district may participate
in and expend revenue on cooperative watershed management actions, including watershed management partnerships
under RCW 39.34.210 and other intergovernmental agreements, for purposes of water supply, water quality, and water
resource and habitat protection and management. [2003 c
327 § 13.]
Finding—Intent—2003 c 327: See note following RCW 39.34.190.
Chapter 57.12
Chapter 57.12 RCW
OFFICERS AND ELECTIONS
Sections
57.12.010
57.12.015
57.12.017
57.12.020
57.12.030
57.12.039
Commissioners—President and secretary—Compensation.
Increase in number of commissioners.
Decrease in number of commissioners.
Vacancies.
Commissioners—Terms.
Commissioner districts.
Redistricting by local governments and municipal corporations—Census
information for—Plan, prepared when, criteria for, hearing on,
request for review of, certification, remand—Sanctions when review
request frivolous: RCW 29A.76.010.
(2004 Ed.)
Officers and Elections
57.12.010 Commissioners—President and secretary—Compensation. The governing body of a district shall
be a board of commissioners consisting of three members, or
five or seven members as provided in RCW 57.12.015. The
board shall annually elect one of its members as president and
another as secretary.
The board shall by resolution adopt rules governing the
transaction of its business and shall adopt an official seal. All
proceedings shall be by resolution recorded in a book kept for
that purpose which shall be a public record.
A district shall provide by resolution for the payment of
compensation to each of its commissioners at a rate of seventy dollars for each day or portion thereof devoted to the
business of the district. However the compensation for each
commissioner shall not exceed six thousand seven hundred
twenty dollars per year. In addition, the secretary may be paid
a reasonable sum for clerical services.
Any commissioner may waive all or any portion of his or
her compensation payable under this section as to any month
or months during the commissioner's term of office, by a
written waiver filed with the district at any time after the
commissioner's election and prior to the date on which the
compensation would otherwise be paid. The waiver shall
specify the month or period of months for which it is made.
No commissioner shall be employed full time by the district. A commissioner shall be reimbursed for reasonable
expenses actually incurred in connection with district business, including subsistence and lodging while away from the
commissioner's place of residence and mileage for use of a
privately-owned vehicle at the mileage rate authorized in
RCW 43.03.060. [2001 c 63 § 1; 1998 c 121 § 5; 1996 c 230
§ 401; 1985 c 330 § 6; 1980 c 92 § 2; 1975 1st ex.s. c 116 §
1; 1969 ex.s. c 148 § 8; 1959 c 108 § 5; 1959 c 18 § 1; 1945
c 50 § 2; 1929 c 114 § 7; Rem. Supp. 1945 § 11585. Cf. 1913
c 161 § 7.]
57.12.010
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Severability—1969 ex.s. c 148: "If any provision of this act, or its
application to any person or circumstance is held invalid, the remainder of
the act, or the application of the provision to other persons or circumstances
is not affected." [1969 ex.s. c 148 § 9.]
57.12.015
57.12.015 Increase in number of commissioners. (1)
In the event a three-member board of commissioners of any
district with any number of customers determines by resolution that it would be in the best interest of the district to
increase the number of commissioners from three to five, or
if the board of a district with any number of customers is presented with a petition signed by ten percent of the registered
voters resident within the district who voted in the last general municipal election calling for an increase in the number
of commissioners of the district, the board shall submit a resolution to the county auditor requesting that an election be
held. Upon receipt of the resolution, the county auditor shall
call a special election to be held within the district, at which
election a proposition in substantially the following language
shall be submitted to the voters:
Shall the Board of Commissioners of (name
and/or number of district) be increased from three
to five members?
Yes . . . . .
No . . . . .
(2004 Ed.)
57.12.015
If the proposition receives a majority approval at the election
the board of commissioners of the district shall be increased
to five members.
(2) In any district with more than ten thousand customers, if a three-member board of commissioners determines by
resolution that it would be in the best interest of the district to
increase the number of commissioners from three to five, the
number of commissioners shall be so increased without an
election, unless within ninety days of adoption of that resolution a petition requesting an election and signed by at least
ten percent of the registered voters who voted in the last
municipal general election is filed with the board. If such a
petition is received, the board shall submit the resolution and
the petition to the county auditor, who shall call a special
election in the manner described in this section.
(3)(a) In any district with more than twenty-five thousand customers, if a five-member board of commissioners
determines by resolution that it would be in the best interest
of the district to increase the number of commissioners from
five to seven, the number of commissioners may be so
increased without an election, unless within ninety days of
adoption of that resolution a petition requesting an election
and signed by at least ten percent of the registered voters who
voted in the last municipal general election is filed with the
board. If such a petition is received, the board shall submit
the resolution and the petition to the county auditor, who
shall call a special election in the manner described in this
section.
(b) In the event a five-member board of commissioners
of any district with more than twenty-five thousand customers determines by resolution that it would be in the best interest of the district to increase the number of commissioners
from five to seven, the board may submit a resolution to the
county auditor requesting that an election be held. Upon
receipt of the resolution, the county auditor shall call a special election to be held within the district, at which election a
proposition in substantially the following language shall be
submitted to the voters:
Shall the Board of Commissioners of (name
and/or number of district) be increased from five
to seven members?
Yes . . . . .
No . . . . .
If the proposition receives a majority approval at the election
the board of commissioners of the district shall be increased
to seven members.
(4) The two additional positions created on boards of
commissioners by this section shall be filled initially as for a
vacancy, except that the appointees shall draw lots, one
appointee to serve until the next district general election after
the appointment, at which two commissioners shall be
elected for six-year terms, and the other appointee to serve
until the second district general election after the appointment, at which two commissioners shall be elected for sixyear terms. [2001 c 63 § 2; 1996 c 230 § 402; 1994 c 223 §
67; 1991 c 190 § 6; 1990 c 259 § 29; 1987 c 449 § 12.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
[Title 57 RCW—page 19]
57.12.017
Title 57 RCW: Water-Sewer Districts
57.12.017
57.12.017 Decrease in number of commissioners. (1)
Except as provided in RCW 52.14.020, in the event a fivemember or seven-member board of commissioners of any
district determines by resolution that it would be in the best
interest of the district to decrease the number of commissioners from five to three, or from seven to five, or in the event
the board is presented with a petition signed by ten percent of
the registered voters resident within the district who voted in
the last general municipal election calling for such a decrease
in the number of commissioners of the district, the board
shall submit a resolution to the county auditor. Upon receipt
of the resolution, the county auditor shall call a special election to be held within the district at which election the following proposition shall be submitted to the voters substantially
as follows:
Shall the board of commissioners of (name and/or number of district) be decreased from (five/seven) members to
(three/five) members?
Yes . . .
No . . .
If the district has commissioner districts, the commissioners of the district must pass a resolution, before the submission of the proposition to the voters, to either redistrict
from five commissioner districts to three commissioner districts, or from seven commissioner districts to five commissioner districts, or eliminate the commissioner districts. The
resolution takes effect upon approval of the proposition by
the voters.
If the proposition receives a majority approval at the
election, the board of commissioners of the district shall be
decreased to three or five members.
(2) The number of members on the board of the district
shall be reduced by one whenever a commissioner resigns
from office or a vacancy otherwise occurs on the board, until
the number of remaining members is reduced to the number
of members that is chosen for the board eventually to have.
The reduction of membership on the board shall not be considered to be a vacancy that is to be filled until the number of
remaining members is less than the number of members on
the board that is chosen for the board eventually to have.
(3) At the next three district general elections after the
reduction is approved, the number of commissioners for the
district that are elected shall be as follows, notwithstanding
the number of commissioners whose terms expire:
(a) In the first election after the reduction, only one position shall be filled.
(b) In the second election, one position shall be filled.
Thereafter, the commissioners shall be elected in the
same manner as prescribed for such districts of the state.
[2001 c 63 § 3.]
57.12.020
57.12.020 Vacancies. A vacancy on the board shall
occur and shall be filled as provided in chapter 42.12 RCW.
In addition, if a commissioner is absent from three consecutive scheduled meetings unless by permission of the board,
the office may be declared vacant. However, such an action
shall not be taken unless the commissioner is notified by mail
after two consecutive unexcused absences that the position
will be declared vacant if the commissioner is absent without
[Title 57 RCW—page 20]
being excused from the next regularly scheduled meeting.
[1996 c 230 § 405; 1994 c 223 § 68; 1990 c 259 § 30; 1985 c
141 § 7; 1981 c 169 § 1; 1975 1st ex.s. c 188 § 14; 1959 c 18
§ 3. Prior: 1953 c 251 § 4; 1947 c 216 § 1, part; 1945 c 50 §
1, part; 1931 c 72 § 1, part; 1929 c 114 § 6, part; Rem. Supp.
1947 § 11584, part. Cf. 1913 c 161 § 7, part.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Severability—1975 1st ex.s. c 188: See RCW 36.94.921.
57.12.030
57.12.030 Commissioners—Terms. Except as in this
section otherwise provided, the term of office of each district
commissioner shall be six years, such term to be computed
from the first day of January following the election, and commissioners shall serve until their successors are elected and
qualified and assume office in accordance with *RCW
29.04.170.
Three initial district commissioners shall be elected at
the same election at which the proposition is submitted to the
voters as to whether such district shall be formed. The election of initial district commissioners shall be null and void if
the ballot proposition to form the district is not approved.
Each candidate shall run for one of three separate commissioner positions. A special filing period shall be opened as
provided in *RCW 29.15.170 and 29.15.180. The person
receiving the greatest number of votes for each position shall
be elected to that position.
The initial district commissioners shall assume office
immediately when they are elected and qualified. Staggering
of the terms of office for the initial district commissioners
shall be accomplished as follows: (1) The person who is
elected receiving the greatest number of votes shall be elected
to a six-year term of office if the election is held in an oddnumbered year or a five-year term of office if the election is
held in an even-numbered year; (2) the person who is elected
receiving the next greatest number of votes shall be elected to
a four-year term of office if the election is held in an oddnumbered year or a three-year term of office if the election is
held in an even-numbered year; and (3) the other person who
is elected shall be elected to a two-year term of office if the
election is held in an odd-numbered year or a one-year term
of office if the election is held in an even-numbered year. The
terms of office shall be calculated from the first day of January after the election.
Thereafter, commissioners shall be elected to six-year
terms of office. Commissioners shall serve until their successors are elected and qualified and assume office in accordance with *RCW 29.04.170. [1996 c 230 § 403; 1994 c 223
§ 69; 1982 1st ex.s. c 17 § 14; 1979 ex.s. c 126 § 39; 1959 c
18 § 4. Prior: 1947 c 216 § 1; 1945 c 50 § 1; 1931 c 72 § 1;
1929 c 114 § 6; Rem. Supp. 1947 § 11584. Cf. 1913 c 161 §
7.]
*Reviser's note: RCW 29.04.170, 29.15.170, and 29.15.180 were
recodified as RCW 29A.20.040, 29A.24.170, and 29A.24.180, respectively,
pursuant to 2003 c 111 § 2401, effective July 1, 2004. RCW 29A.24.170 and
29A.24.180 were subsequently repealed by 2004 c 271 § 193.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Purpose—1979 ex.s. c 126: See RCW 29A.20.040(1).
Terms and compensation of county and district officers: State Constitution
Art. 11 § 5.
(2004 Ed.)
Comprehensive Plan—Local Improvement Districts
Time of holding election for district officers: State Constitution Art. 6 § 8.
57.12.039
57.12.039 Commissioner districts. (1) Notwithstanding RCW 57.12.020 and 57.12.030, the board of commissioners may provide by majority vote that subsequent commissioners be elected from commissioner districts within the district. If the board exercises this option, it shall divide the
district into three, five, or seven if the number of commissioners has been increased under RCW 57.12.015, commissioner districts of approximately equal population following
current precinct and district boundaries.
(2) Commissioner districts shall be used as follows: (a)
Only a registered voter who resides in a commissioner district may be a candidate for, or serve as, a commissioner of
the commissioner district; and (b) only voters of a commissioner district may vote at a primary to nominate candidates
for a commissioner of the commissioner district. Voters of
the entire district may vote at a general election to elect a person as a commissioner of the commissioner district. Commissioner districts shall be redrawn as provided in *chapter
29.70 RCW.
(3) In districts in which commissioners are nominated
from commissioner districts, at the inception of a five-member or a seven-member board of commissioners, the new
commissioner districts shall be numbered one through five or
one through seven and the incumbent commissioners shall
represent up to five commissioner districts depending on the
amount of commissioners. If, as a result of redrawing the district boundaries two or three of the incumbent commissioners
reside in one of the new commissioner districts, the commissioners who reside in the same commissioner district shall
determine by lot which of the first three or five numbered
commissioner districts they shall represent for the remainder
of their respective terms. A primary shall be held to nominate
candidates from the remaining districts where necessary and
commissioners shall be elected at large at the general election. The persons elected as commissioners from the remaining commissioner districts shall take office immediately after
qualification as defined under **RCW 29.01.135. [2001 c 63
§ 4; 1996 c 230 § 404; 1994 c 223 § 70; 1986 c 41 § 2.]
Reviser's note: *(1) Chapter 29.70 RCW was recodified as chapter
29A.76 RCW pursuant to 2003 c 111 § 2401, effective July 1, 2004.
**(2) RCW 29.01.135 was recodified as RCW 29A.04.133 pursuant to
2003 c 111 § 2401, effective July 1, 2004.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Chapter 57.16
Chapter 57.16 RCW
COMPREHENSIVE PLAN—LOCAL
IMPROVEMENT DISTRICTS
Sections
57.16.010
57.16.015
57.16.045
57.16.050
57.16.060
57.16.062
57.16.065
(2004 Ed.)
General comprehensive plan of improvements—Approval of
engineer, director of health, and city, town, or county—
Amendments.
Expenditures before plan adopted and approved.
Additions and betterments—Annexed areas.
Districts authorized—Special assessments—Bonds.
Resolution or petition to form district—Procedure—Written
protest—Notice.
Hearing—Improvement ordered—Divestment of power to
order—Notice—Appeal—Assessment roll.
Notice must contain statement that assessments may vary from
estimates.
57.16.070
57.16.073
57.16.075
57.16.080
57.16.090
57.16.100
57.16.110
57.16.120
57.16.140
57.16.150
57.16.160
57.16.010
Hearing on assessment roll—Notice.
Sanitary sewer and potable water facilities—Notice to certain
property owners.
Exemption of farm and agricultural land from special benefit
assessments.
Enlarged district.
Review.
Conclusiveness of roll—Correction of errors.
Segregation of assessment—Procedure.
Acquisition of property subject to local improvement assessments—Payment.
Excess sewer capacity or water supply not grounds for zoning
decision challenge.
Foreclosure of assessments—Attorneys' fees.
Review of sewer general comprehensive plan—Time limitations—Notice of rejection of plan or extension of timeline.
Deferral of special assessments: Chapter 84.38 RCW.
Local improvements, supplemental authority: Chapter 35.51 RCW.
57.16.010
57.16.010 General comprehensive plan of improvements—Approval of engineer, director of health, and
city, town, or county—Amendments. Before ordering any
improvements or submitting to vote any proposition for
incurring any indebtedness, the district commissioners shall
adopt a general comprehensive plan for the type or types of
facilities the district proposes to provide. A district may prepare a separate general comprehensive plan for each of these
services and other services that districts are permitted to provide, or the district may combine any or all of its comprehensive plans into a single general comprehensive plan.
(1) For a general comprehensive plan of a water supply
system, the commissioners shall investigate the several portions and sections of the district for the purpose of determining the present and reasonably foreseeable future needs
thereof; shall examine and investigate, determine, and select
a water supply or water supplies for such district suitable and
adequate for present and reasonably foreseeable future needs
thereof; and shall consider and determine a general system or
plan for acquiring such water supply or water supplies, and
the lands, waters, and water rights and easements necessary
therefor, and for retaining and storing any such waters, and
erecting dams, reservoirs, aqueducts, and pipe lines to convey
the same throughout such district. There may be included as
part of the system the installation of fire hydrants at suitable
places throughout the district. The commissioners shall determine a general comprehensive plan for distributing such
water throughout such portion of the district as may then reasonably be served by means of subsidiary aqueducts and pipe
lines, and a long-term plan for financing the planned projects
and the method of distributing the cost and expense thereof,
including the creation of local improvement districts or utility
local improvement districts, and shall determine whether the
whole or part of the cost and expenses shall be paid from revenue or general obligation bonds.
(2) For a general comprehensive plan for a sewer system,
the commissioners shall investigate all portions and sections
of the district and select a general comprehensive plan for a
sewer system for the district suitable and adequate for present
and reasonably foreseeable future needs thereof. The general
comprehensive plan shall provide for treatment plants and
other methods and services, if any, for the prevention, control, and reduction of water pollution and for the treatment
and disposal of sewage and industrial and other liquid wastes
now produced or which may reasonably be expected to be
produced within the district and shall, for such portions of the
[Title 57 RCW—page 21]
57.16.010
Title 57 RCW: Water-Sewer Districts
district as may then reasonably be served, provide for the
acquisition or construction and installation of laterals, trunk
sewers, intercepting sewers, syphons, pumping stations or
other sewage collection facilities, septic tanks, septic tank
systems or drainfields, and systems for the transmission and
treatment of wastewater. The general comprehensive plan
shall provide a long-term plan for financing the planned
projects and the method of distributing the cost and expense
of the sewer system and services, including the creation of
local improvement districts or utility local improvement districts; and provide whether the whole or some part of the cost
and expenses shall be paid from revenue or general obligation bonds.
(3) For a general comprehensive plan for a drainage system, the commissioners shall investigate all portions and sections of the district and adopt a general comprehensive plan
for a drainage system for the district suitable and adequate for
present and future needs thereof. The general comprehensive
plan shall provide for a system to collect, treat, and dispose of
storm water or surface waters, including use of natural systems and the construction or provision of culverts, storm
water pipes, ponds, and other systems. The general comprehensive plan shall provide for a long-term plan for financing
the planned projects and provide for a method of distributing
the cost and expense of the drainage system, including local
improvement districts or utility local improvement districts,
and provide whether the whole or some part of the cost and
expenses shall be paid from revenue or general obligation
bonds.
(4) For a general comprehensive plan for street lighting,
the commissioners shall investigate all portions and sections
of the district and adopt a general comprehensive plan for
street lighting for the district suitable and adequate for
present and future needs thereof. The general comprehensive
plan shall provide for a system or systems of street lighting,
provide for a long-term plan for financing the planned
projects, and provide for a method of distributing the cost and
expense of the street lighting system, including local
improvement districts or utility local improvement districts,
and provide whether the whole or some part of the cost and
expenses shall be paid from revenue or general obligation
bonds.
(5) The commissioners may employ such engineering
and legal service as in their discretion is necessary in carrying
out their duties.
(6) Any general comprehensive plan or plans shall be
adopted by resolution and submitted to an engineer designated by the legislative authority of the county in which fiftyone percent or more of the area of the district is located, and
to the director of health of the county in which the district or
any portion thereof is located, and must be approved in writing by the engineer and director of health, except that a comprehensive plan relating to street lighting shall not be submitted to or approved by the director of health. The general comprehensive plan shall be approved, conditionally approved, or
rejected by the director of health and by the designated engineer within sixty days of their respective receipt of the plan.
However, this sixty-day time limitation may be extended by
the director of health or engineer for up to an additional sixty
days if sufficient time is not available to review adequately
the general comprehensive plans.
[Title 57 RCW—page 22]
Before becoming effective, the general comprehensive
plan shall also be submitted to, and approved by resolution
of, the legislative authority of every county within whose
boundaries all or a portion of the district lies. The general
comprehensive plan shall be approved, conditionally
approved, or rejected by each of the county legislative
authorities pursuant to the criteria in RCW 57.02.040 for
approving the formation, reorganization, annexation, consolidation, or merger of districts. The resolution, ordinance, or
motion of the legislative body that rejects the comprehensive
plan or a part thereof shall specifically state in what particular
the comprehensive plan or part thereof rejected fails to meet
these criteria. The general comprehensive plan shall not provide for the extension or location of facilities that are inconsistent with the requirements of RCW 36.70A.110. Nothing
in this chapter shall preclude a county from rejecting a proposed plan because it is in conflict with the criteria in RCW
57.02.040. Each general comprehensive plan shall be deemed
approved if the county legislative authority fails to reject or
conditionally approve the plan within ninety days of the
plan's submission to the county legislative authority or within
thirty days of a hearing on the plan when the hearing is held
within ninety days of submission to the county legislative
authority. However, a county legislative authority may
extend this ninety-day time limitation by up to an additional
ninety days where a finding is made that ninety days is insufficient to review adequately the general comprehensive plan.
In addition, the commissioners and the county legislative
authority may mutually agree to an extension of the deadlines
in this section.
If the district includes portions or all of one or more cities or towns, the general comprehensive plan shall be submitted also to, and approved by resolution of, the legislative
authorities of the cities and towns before becoming effective.
The general comprehensive plan shall be deemed approved
by the city or town legislative authority if the city or town
legislative authority fails to reject or conditionally approve
the plan within ninety days of the plan's submission to the
city or town or within thirty days of a hearing on the plan
when the hearing is held within ninety days of submission to
the county legislative authority. However, a city or town legislative authority may extend this time limitation by up to an
additional ninety days where a finding is made that insufficient time exists to adequately review the general comprehensive plan within these time limitations. In addition, the
commissioners and the city or town legislative authority may
mutually agree to an extension of the deadlines in this section.
Before becoming effective, the general comprehensive
plan shall be approved by any state agency whose approval
may be required by applicable law. Before becoming effective, any amendment to, alteration of, or addition to, a general
comprehensive plan shall also be subject to such approval as
if it were a new general comprehensive plan. However, only
if the amendment, alteration, or addition affects a particular
city or town, shall the amendment, alteration, or addition be
subject to approval by such particular city or town governing
body. [1997 c 447 § 18; 1996 c 230 § 501; 1990 1st ex.s. c 17
§ 35; 1989 c 389 § 10; 1982 c 213 § 2; 1979 c 23 § 2; 1977
ex.s. c 299 § 3; 1959 c 108 § 6; 1959 c 18 § 6. Prior: 1939 c
(2004 Ed.)
Comprehensive Plan—Local Improvement Districts
128 § 2, part; 1937 c 177 § 1; 1929 c 114 § 10, part; RRS §
11588. Cf. 1913 c 161 § 10.]
Finding—Purpose—1997 c 447: See note following RCW 70.05.074.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Severability—Part, section headings not law—1990 1st ex.s. c 17:
See RCW 36.70A.900 and 36.70A.901.
57.16.015
57.16.015 Expenditures before plan adopted and
approved. No expenditure for carrying on any part of a general comprehensive plan shall be made other than the necessary salaries of engineers, clerical, office expenses, and other
professional expenses of the district, and the cost of engineering, surveying, preparation, and collection of data necessary
for making and adopting a general plan of improvements in
the district, until the general comprehensive plan of improvements has been adopted by the commissioners and approved
as provided in RCW 57.16.010. [1996 c 230 § 502; 1953 c
250 § 5; 1941 c 210 § 12; Rem. Supp. 1941 § 9425-21. Formerly RCW 56.08.030.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.16.060
the purpose of payment of improvements and payment into
the revenue bond fund for the payment of revenue bonds. No
warrants or bonds shall be issued in a utility local improvement district, but the collection of interest and principal on all
special assessments in the utility local improvement district
shall be paid into the revenue bond fund, except that special
assessments paid before the issuance and sale of bonds may
be deposited in a fund for the payment of costs of improvements in the utility local improvement district. Revenue
bonds shall be issued using the procedures by which cities
and towns issue revenue bonds, insofar as is consistent with
this title.
Such revenue bonds may also be issued and sold in
accordance with chapter 39.46 RCW. [1996 c 230 § 601;
1987 c 169 § 2; 1983 c 167 § 161; 1982 1st ex.s. c 17 § 15;
1953 c 251 § 13; 1939 c 128 § 1; 1929 c 114 § 9; RRS §
11587. Cf. 1913 c 161 § 9.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Assessments and charges against state lands: Chapter 79.44 RCW.
Local improvement bonds: Chapter 35.45 RCW.
57.16.045
57.16.045 Additions and betterments—Annexed
areas. Whenever an area has been annexed to a district after
the adoption of a general comprehensive plan, the commissioners shall adopt by resolution a plan for additions and betterments to the original comprehensive plan to provide for
the needs of the area annexed. [1996 c 230 § 503.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.16.050
57.16.050 Districts authorized—Special assessments—Bonds. (1) A district may establish local improvement districts within its territory; levy special assessments
and allow annual installments on the special assessments,
together with interest thereon, extending over a period not
exceeding twenty years, on all property specially benefited
by a local improvement, on the basis of special benefits to
pay in whole or in part the damage or costs of any improvements ordered in the district; and issue local improvement
bonds in the local improvement district to be repaid by the
collection of special assessments. The bonds may be of any
form, including bearer bonds or registered bonds as provided
in RCW 39.46.030. The levying, collection, and enforcement
of special assessments and the issuance of bonds shall be as
provided for the levying, collection, and enforcement of special assessments and the issuance of local improvement district bonds by cities and towns insofar as is consistent with
this title. The duties devolving upon the city or town treasurer
are imposed upon the county treasurer of the county in which
the real property is located for the purposes hereof. The mode
of assessment shall be determined by the commissioners by
resolution.
(2) A district may establish a utility local improvement
district, in lieu of a local improvement district, if the petition
or resolution for establishing the local improvement district,
and the approved comprehensive plan or approved amendment thereto or plan providing for additions and betterments
to the original plan, previously adopted, provides that, except
as set forth in this section, the special assessments shall be for
(2004 Ed.)
57.16.060
57.16.060 Resolution or petition to form district—
Procedure—Written protest—Notice. Local improvement
districts or utility local improvement districts to carry out the
whole or any portion of the general comprehensive plan of
improvements or plan providing for additions and betterments to an original general comprehensive plan previously
adopted may be initiated either by resolution of the board of
commissioners or by petition signed by the owners according
to the records of the office of the applicable county auditor of
at least fifty-one percent of the area of the land within the limits of the improvement district to be created.
In case the board of commissioners desires to initiate the
formation of an improvement district by resolution, it first
shall pass a resolution declaring its intention to order the
improvement, setting forth the nature and territorial extent of
such proposed improvement, designating the number of the
proposed improvement district, and describing the boundaries thereof, stating the estimated cost and expense of the
improvement and the proportionate amount thereof which
will be borne by the property within the proposed improvement district, and fixing a date, time, and place for a public
hearing on the formation of the proposed improvement district.
In case any such improvement district is initiated by petition, the petition shall set forth the nature and territorial
extent of the proposed improvement requested to be ordered
and the fact that the signers thereof are the owners according
to the records of the applicable county auditor of at least fiftyone percent of the area of land within the limits of the
improvement district to be created. Upon the filing of such
petition the board shall determine whether the petition is sufficient, and the board's determination thereof shall be conclusive upon all persons. No person may withdraw his or her
name from the petition after it has been filed with the board
of commissioners. If the board finds the petition to be sufficient, it shall proceed to adopt a resolution declaring its intention to order the improvement petitioned for, setting forth the
[Title 57 RCW—page 23]
57.16.062
Title 57 RCW: Water-Sewer Districts
nature and territorial extent of the improvement, designating
the number of the proposed improvement district and
describing the boundaries thereof, stating the estimated cost
and expense of the improvement and the proportionate
amount thereof which will be borne by the property within
the proposed improvement district, and fixing a date, time,
and place for a public hearing on the formation of the proposed improvement district.
Notice of the adoption of the resolution of intention,
whether the resolution was adopted on the initiative of the
board or pursuant to a petition of the property owners, shall
be published in at least two consecutive issues of a newspaper
of general circulation in the proposed improvement district,
the date of the first publication to be at least fifteen days prior
to the date fixed by such resolution for hearing before the
board of commissioners. Notice of the adoption of the resolution of intention shall also be given each owner or reputed
owner of any lot, tract, parcel of land, or other property
within the proposed improvement district by mailing the
notice at least fifteen days before the date fixed for the public
hearing to the owner or reputed owner of the property as
shown on the tax rolls of the county treasurer of the county in
which the real property is located at the address shown
thereon. Whenever such notices are mailed, the commissioners shall maintain a list of the reputed property owners, which
list shall be kept on file at a location within the district and
shall be made available for public perusal. The notices shall
refer to the resolution of intention and designate the proposed
improvement district by number. The notices also shall set
forth the nature of the proposed improvement, the total estimated cost, the proportion of total cost to be borne by assessments, and the date, time, and place of the hearing before the
board of commissioners. In the case of improvements initiated by resolution, the notice also shall: (1) State that all persons desiring to object to the formation of the proposed district must file their written protests with the secretary of the
board of commissioners no later than ten days after the public
hearing; (2) state that if owners of at least forty percent of the
area of land within the proposed improvement district file
written protests with the secretary of the board, the power of
the commissioners to proceed with the creation of the proposed improvement district shall be divested; (3) provide the
name and address of the secretary of the board; and (4) state
the hours and location within the district where the names of
the property owners within the proposed improvement district are kept available for public perusal. In the case of the
notice given each owner or reputed owner by mail, the notice
shall set forth the estimated amount of the cost and expense
of such improvement to be borne by the particular lot, tract,
parcel of land, or other property. [1999 c 153 § 15; 1996 c
230 § 602; 1991 c 190 § 7; 1986 c 256 § 3; 1982 1st ex.s. c 17
§ 16; 1977 ex.s. c 299 § 7; 1965 ex.s. c 39 § 1; 1959 c 18 § 11.
Prior: 1953 c 251 § 14; 1929 c 114 § 12, part; RRS § 11590,
part. Cf. 1913 c 161 § 12, part.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.16.062
57.16.062 Hearing—Improvement ordered—Divestment of power to order—Notice—Appeal—Assessment
[Title 57 RCW—page 24]
roll. Whether an improvement district is initiated by petition
or resolution, the board shall conduct a public hearing at the
time and place designated in the notice to property owners.
At this hearing the board shall hear objections from any person affected by the formation of the improvement district and
may make such changes in the boundaries of the improvement district or such modifications in the plans for the proposed improvement as shall be deemed necessary. The board
may not change the boundaries of the improvement district to
include property not previously included in it without first
passing a new resolution of intention and giving a new notice
to property owners in the manner and form and within the
time provided in this chapter for the original notice.
After the hearing and the expiration of the ten-day period
for filing protests, the commissioners shall have jurisdiction
to overrule protests and proceed with any such improvement
district initiated by petition or resolution. The jurisdiction of
the commissioners to proceed with any improvement district
initiated by resolution shall be divested by protests filed with
the secretary of the board within ten days after the public
hearing, signed by the owners, according to the records of the
applicable county auditor, of at least forty percent of the area
of land within the proposed improvement district.
If the commissioners find that the improvement district
should be formed, they shall by resolution form the improvement district and order the improvement. After execution of
the resolution forming the improvement district, the secretary
of the board of commissioners shall publish, in a legal publication that serves the area subject to the improvement district,
a notice setting forth that a resolution has been passed forming the improvement district and that a lawsuit challenging
the jurisdiction or authority of the district to proceed with the
improvement and creating the improvement district must be
filed, and notice to the district served, within thirty days of
the publication of the notice. The notice shall set forth the
nature of the appeal. Property owners bringing the appeal
shall follow the procedures set forth under RCW 57.16.090.
Whenever a resolution forming an improvement district has
been adopted, the formation is conclusive in all things upon
all parties, and cannot be contested or questioned in any manner in any proceeding whatsoever by any person not commencing a lawsuit in the manner and within the time provided
in this section, except for lawsuits made under RCW
57.16.090.
Following an appeal, if it is unsuccessful or if no appeal
is made under RCW 57.16.090, the commissioners may proceed with creating the improvement district, provide the
improvement and provide the general funds of the district to
be applied thereto, adopt detailed plans of the improvement
district and declare the estimated cost thereof, acquire all necessary land therefor, pay all damages caused thereby, and
commence in the name of the district such eminent domain
proceedings as may be necessary to entitle the district to proceed with the improvements. The board shall thereupon proceed with the work and file with the county treasurer of the
county in which the real property is located its roll levying
special assessments in the amount to be paid by special
assessment against the property situated within the improvement district in proportion to the special benefits to be
derived by the property therein from the improvements.
[1996 c 230 § 605; 1991 c 190 § 3; 1986 c 256 § 2; 1974 ex.s.
(2004 Ed.)
Comprehensive Plan—Local Improvement Districts
c 58 § 6; 1971 ex.s. c 272 § 9; 1953 c 250 § 18; 1941 c 210 §
28; Rem. Supp. 1941 § 9425-37. Formerly RCW 56.20.030.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.16.090
57.16.075
57.16.075 Exemption of farm and agricultural land
from special benefit assessments. See RCW 84.34.300
through 84.34.380 and 84.34.922.
57.16.080
57.16.065
57.16.065 Notice must contain statement that assessments may vary from estimates. Notice given to the public
or to the owners of specific lots, tracts, or parcels of land
relating to the formation of an improvement district shall
contain a statement that actual assessments may vary from
assessment estimates so long as they do not exceed a figure
equal to the increased true and fair value the improvement
adds to the property. [1996 c 230 § 604; 1989 c 243 § 11.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.16.070
57.16.070 Hearing on assessment roll—Notice.
Before approval of the roll a notice shall be published once a
week for two consecutive weeks in a newspaper of general
circulation in the improvement district, stating that the roll is
on file and open to inspection in the office of the secretary,
and fixing the time, not less than fifteen or more than thirty
days from the date of the first publication of the notice, within
which protests must be filed with the secretary against any
assessments shown thereon, and fixing a time when a hearing
will be held by the commissioners on the protests. Notice
shall also be given by mailing, at least fifteen days before the
hearing, a similar notice to the owners or reputed owners of
the land in the improvement district as they appear on the
books of the treasurer of the county in which the real property
is located. At the hearing, or any adjournment thereof, the
commissioners may correct, change, or modify the roll, or
any part thereof, or set aside the roll and order a new assessment, and may then by resolution approve it. If an assessment
is raised a new notice similar to the first shall be given, after
which final approval of the roll may be made. When property
has been entered originally upon the roll and the assessment
thereon is not raised, no objection thereto shall be considered
by the commissioners or by any court on appeal unless the
objection is made in writing at, or prior to, the date fixed for
the original hearing upon the roll. [1996 c 230 § 606; 1982
1st ex.s. c 17 § 17; 1959 c 18 § 12. Prior: 1953 c 251 § 15;
1929 c 114 § 12, part; RRS § 11590, part. Cf. 1913 c 161 §
12, part.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.16.073
57.16.073 Sanitary sewer and potable water facilities—Notice to certain property owners. Whenever it is
proposed that an improvement district finance sanitary sewer
or potable water facilities, additional notice of the public
hearing on the proposed improvement district shall be mailed
to the owners of any property located outside of the proposed
improvement district that would be required as a condition of
federal housing administration loan qualification, at the time
of notice, to be connected to the specific sewer or water facilities installed by the improvement district. The notice shall
include information about this restriction. [1996 c 230 § 603;
1987 c 315 § 6.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
(2004 Ed.)
57.16.080 Enlarged district. If any portion of the system after its installation is not adequate for the purpose for
which it was intended, or if for any reason changes, alterations, or betterments are necessary in any portion of the system after its installation, then an improvement district with
boundaries which may include one or more existing improvement districts may be created in the district in the same manner as is provided herein for the creation of improvement districts. Upon the organization of such an improvement district,
the plan of the improvement and the payment of the cost of
the improvement shall be carried out in the same manner as is
provided herein for the carrying out of and the paying for the
improvement in the improvement districts previously provided for in this title. [1996 c 230 § 607; 1959 c 18 § 13.
Prior: 1929 c 114 § 12, part; RRS § 11590, part. Cf. 1913 c
161 § 12.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.16.090
57.16.090 Review. The decision of the district board of
commissioners upon any objections made within the time and
in the manner herein prescribed may be reviewed by the
superior court upon an appeal thereto taken in the following
manner. The appeal shall be made by filing written notice of
appeal with the secretary of the board of commissioners and
with the clerk of the superior court in the county in which the
real property is situated within ten days after publication of a
notice that the resolution confirming such assessment roll has
been adopted, and such notice of appeal shall describe the
property and set forth the objections of such appellant to such
assessment. Within ten days from the filing of such notice of
appeal with the clerk of the superior court, the appellant shall
file with the clerk of the court a transcript consisting of the
assessment roll and the appellant's objections thereto,
together with the resolution confirming the assessment roll
and the record of the district commissioners with reference to
the assessment. The transcript, upon payment of the necessary fees therefor, shall be furnished by the secretary of the
board of commissioners and shall be certified by the secretary to contain full, true, and correct copies of all matters and
proceedings required to be included in such transcript. Such
fees shall be the same as the fees payable to the county clerk
for the preparation and certification of transcripts on appeal
to the supreme court or the court of appeals in civil actions.
At the time of the filing of the notice of appeal with the clerk
of the superior court, the appellant shall file a sufficient bond
in the penal sum of two hundred dollars, with at least two
sureties, to be approved by the judge of the court, conditioned
to prosecute such appeal without delay, and if unsuccessful to
pay all costs to which the district is put by reason of such
appeal. The court may order the appellant, upon application
therefor, to execute and file such additional bond or bonds as
the necessity of the case may require. Within three days after
such transcript is filed in the superior court, the appellant
shall give written notice to the secretary of the district that
such transcript is filed. The notice shall state a time, not less
than three days from the service thereof, when the appellant
[Title 57 RCW—page 25]
57.16.100
Title 57 RCW: Water-Sewer Districts
will call up the cause for hearing. The superior court shall, at
such time or at such further time as may be fixed by order of
the court, hear and determine such appeal without a jury. The
appeal shall have preference over all civil causes pending in
the court, except eminent domain proceedings and actions of
forcible entry and detainer. The judgment of the court shall
confirm, unless the court shall find from the evidence that
such assessment is either founded upon a fundamentally
wrong basis or a decision of the board of commissioners
thereon was arbitrary or capricious, or both, in which event
the judgment of the court shall correct, modify, or annul the
assessment insofar as it affects the property of the appellant.
A certified copy of the decision of the court shall be filed with
the officer who shall have custody of the assessment roll,
who shall modify and correct the assessment roll in accordance with such decision. Appellate review of the judgment
of the superior court may be sought as in other civil cases.
However, the appeal must be sought within fifteen days after
the date of the entry of the judgment of such superior court. A
certified copy of the order of the supreme court or the court of
appeals upon such appeal shall be filed with the officer having custody of the assessment roll, who shall thereupon modify and correct the assessment roll in accordance with the
decision. [1996 c 230 § 609; 1991 c 190 § 8; 1988 c 202 § 53;
1982 1st ex.s. c 17 § 18; 1971 c 81 § 126; 1965 ex.s. c 39 § 2;
1929 c 114 § 13; RRS § 11591. Cf. 1913 c 161 § 13.]
Rules of court: Cf. RAP 5.2, 18.22.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Severability—1988 c 202: See note following RCW 2.24.050.
57.16.100
57.16.100 Conclusiveness of roll—Correction of
errors. (1) Whenever any assessment roll for local improvements shall have been confirmed by the district board of commissioners, the regularity, validity, and correctness of the
proceedings relating to the improvements, and to the assessment therefor, including the action of the district commissioners upon the assessment roll and the confirmation
thereof, shall be conclusive in all things upon all parties, and
cannot in any manner be contested or questioned in any proceeding whatsoever by any person not filing written objections to such roll in the manner and within the time provided
in this chapter, and not appealing from the action of the commissioners in confirming such assessment roll in the manner
and within the time in this chapter provided. No proceedings
of any kind shall be commenced or prosecuted for the purpose of defeating or contesting any such assessment, or the
sale of property to pay such assessment, or any certificate of
delinquency issued therefor, or the foreclosure of any lien
issued therefor. However, this section shall not be construed
as prohibiting the bringing of injunction proceedings to prevent the sale of any real estate upon the grounds (a) that the
property about to be sold does not appear upon the assessment roll, or (b) that the assessment had been paid.
(2) This section also shall not prohibit the correction of
clerical errors and errors in the computation of assessments in
assessment rolls by the following procedure:
(a) The board of commissioners may file a petition with
the superior court of the county wherein the real property is
located, asking that the court enter an order correcting such
errors and directing that the county treasurer pay a portion or
[Title 57 RCW—page 26]
all of the incorrect assessment by the transfer of funds from
the district's maintenance fund, if such relief be necessary.
(b) Upon the filing of the petition, the court shall set a
date for hearing and upon the hearing may enter an order as
provided in (a) of this subsection. However, neither the correcting order nor the corrected assessment roll shall result in
an increased assessment to the property owner. [1996 c 230
§ 608; 1929 c 114 § 14; RRS § 11592. Cf. 1913 c 161 § 14.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.16.110
57.16.110 Segregation of assessment—Procedure.
Whenever any land against which there has been levied any
special assessment by any district shall have been sold in part
or divided, the board of commissioners of the district shall
have the power to order a segregation of the assessment.
Any person desiring to have a special assessment against
a tract of land segregated to apply to smaller parts thereof
shall apply to the board of commissioners of the district that
levied the assessment. If the commissioners determine that a
segregation should be made, they shall by resolution order
the treasurer of the county in which the real property is
located to make segregation on the original assessment roll as
directed in the resolution. The segregation shall be made as
nearly as possible on the same basis as the original assessment was levied, and the total of the segregated parts of the
assessment shall equal the assessment before segregation.
The resolution shall describe the original tract and the
amount and date of the original assessment, and shall define
the boundaries of the divided parts and the amount of the
assessment chargeable to each part. A certified copy of the
resolution shall be delivered to the treasurer of the county in
which the real property is located who shall proceed to make
the segregation. The board of commissioners may require as
a condition to the order of segregation that the person seeking
it pay the district the reasonable engineering and clerical
costs incident to making the segregation. [1999 c 153 § 16;
1998 c 106 § 5; 1996 c 230 § 610; 1982 1st ex.s. c 17 § 19;
1953 c 251 § 23.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Segregation duties of county treasurer: RCW 36.29.160.
57.16.120
57.16.120 Acquisition of property subject to local
improvement assessments—Payment.
See RCW
79.44.190.
57.16.140 Excess sewer capacity or water supply not
grounds for zoning decision challenge. The construction of
or existence of sewer capacity or water supply in excess of
the needs of the density allowed by zoning shall not be
grounds for any legal challenge to any zoning decision by the
county. [1996 c 230 § 504; 1982 c 213 § 4.]
57.16.140
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.16.150
57.16.150 Foreclosure of assessments—Attorneys'
fees. Judgments foreclosing special assessments pursuant to
RCW 35.50.260 may also allow to districts, in addition to
(2004 Ed.)
Finances
delinquent installments, interest, penalties, and costs, such
attorneys' fees as the court may adjudge reasonable. [1996 c
230 § 611; 1987 c 449 § 16.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.16.160
57.16.160 Review of sewer general comprehensive
plan—Time limitations—Notice of rejection of plan or
extension of timeline. For any new or revised sewer general
comprehensive plan submitted by a water-sewer district for
review under this chapter, the appropriate state agency shall
review and either approve, conditionally approve, reject, or
request amendments within ninety days of the receipt of the
submission of the plan. The appropriate state agency may
extend this ninety-day time limitation for new submittals by
up to an additional ninety days if insufficient time exists to
adequately review the general comprehensive plan. For rejections of plans or extensions of the timeline, the appropriate
state agency shall provide in writing to the water-sewer district the reason for such action. In addition, the governing
body of the water-sewer district and the appropriate state
agency may mutually agree to an extension of the deadlines
contained in this section. [2002 c 161 § 2.]
57.20.015
will not exceed the life of the improvement to be acquired by
the issuance of the bonds. The bonds shall be issued and sold
in accordance with chapter 39.46 RCW. The election at
which the voters are presented with a ballot proposition
authorizing both the bond issue and imposition of excess
bond retirement levies shall be held as provided in RCW
39.36.050.
Whenever the proposition to issue such bonds and
impose such excess bond retirement levies has been
approved, there shall be levied by the officers or governing
body charged with the duty of levying taxes, annual levies in
excess of the constitutional and/or statutory tax limitations
sufficient to meet the annual or semiannual payments of principal and interest on the bonds upon all taxable property
within the district. [1984 c 186 § 53; 1983 c 167 § 162; 1973
1st ex.s. c 195 § 71; 1970 ex.s. c 56 § 83; 1969 ex.s. c 232 §
87; 1953 c 251 § 12; 1951 2nd ex.s. c 25 § 3; 1931 c 72 § 2;
1929 c 114 § 11; RRS § 11589. Cf. 1913 c 161 § 11.]
Purpose—1984 c 186: See note following RCW 39.46.110.
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
Purpose—1970 ex.s. c 56: See note following RCW 39.52.020.
Chapter 57.20
Chapter 57.20 RCW
FINANCES
Sections
57.20.010
57.20.015
57.20.018
57.20.0181
57.20.019
57.20.020
57.20.023
57.20.025
57.20.027
57.20.030
57.20.080
57.20.090
57.20.105
57.20.110
57.20.120
57.20.130
57.20.135
57.20.140
57.20.150
57.20.160
57.20.165
57.20.170
57.20.015
General obligation bonds—Term—Issuance—Excess bond
retirement levies.
Refunding general obligation bonds.
Revenue bonds authorized—Use.
Additional revenue bonds for increased cost of improvements.
Additions and betterments.
Revenue bonds—Special fund.
Covenants to guarantee payment of revenue bonds—Bonds
payable from same source may be issued on parity.
Refunding revenue bonds.
Revenue warrants and revenue bond anticipation warrants.
Local improvement guaranty fund.
Guaranty fund—Subrogation of district as trustee.
Rights and remedies of bond owner.
Vote on general indebtedness.
Limitation of indebtedness.
Additional indebtedness—Ballot proposition.
Bonds—Payment of interest.
Treasurer—Designation—Approval—Powers and duties—
Bond.
Maintenance or general fund and special funds.
Maintenance or general fund and special funds—Use of surplus in maintenance or general fund.
Maintenance or general fund and special funds—Deposits
and investments.
Deposit account requirements.
Maintenance or general fund and special funds—Loans from
maintenance or general funds to construction funds or
other funds.
Election to authorize revenue bonds: RCW 57.20.018.
57.20.010
57.20.010 General obligation bonds—Term—Issuance—Excess bond retirement levies. When general district indebtedness payable from annual tax levies to be made
in excess of the constitutional and/or statutory tax limitations
has been authorized, the district may issue its general obligation bonds in payment thereof.
The bonds shall not have terms in excess of twenty years
and shall as nearly as practicable be issued for a period which
(2004 Ed.)
Validation—Saving—Severability—1969 ex.s. c 232: See notes following RCW 39.52.020.
57.20.015 Refunding general obligation bonds. (1)
The board of commissioners of any district may by resolution, without submitting the matter to the voters of the district, provide for the issuance of refunding general obligation
bonds to refund any outstanding general obligation bonds, or
any part thereof, at maturity thereof, or before the maturity
thereof if they are subject to call for prior redemption or all of
the owners thereof consent thereto. Refunding bonds may be
combined with an issue of bonds for other district purposes,
as long as those other bonds are approved in accordance with
applicable law.
(2) The total cost to the district over the life of the
refunding bonds or refunding portion of an issue of bonds
shall not exceed the total cost to the district which the district
would have incurred but for such refunding over the remainder of the life of the bonds to be refunded thereby.
(3) The refunding bonds may be exchanged for the bonds
to be refunded thereby, or may be sold in such manner as the
board of commissioners deems to be for the best interest of
the district, and the proceeds of such sale used exclusively for
the purpose of paying, retiring, and canceling the bonds to be
refunded and interest thereon. Such bonds may be of any
form, including bearer bonds or registered bonds as provided
in RCW 39.46.030. [1996 c 230 § 702; 1984 c 186 § 54;
1983 c 167 § 163; 1973 1st ex.s. c 195 § 72; 1953 c 251 § 16.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Purpose—1984 c 186: See note following RCW 39.46.110.
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
Election to authorize revenue bonds: RCW 57.20.018.
[Title 57 RCW—page 27]
57.20.018
Title 57 RCW: Water-Sewer Districts
57.20.018
57.20.018 Revenue bonds authorized—Use. (1) The
commissioners may, without submitting a proposition to the
voters, authorize by resolution the district to issue revenue
bonds for the construction costs, interest during the period of
construction and six months thereafter, working capital or
other costs of the improvements described in any part or all of
a general comprehensive plan or plans, or for other purposes
or functions of a district authorized by statute. The amount of
the bonds to be issued shall be included in the resolution.
(2) Any resolution authorizing the issuance of revenue
bonds may include provision for refunding any local
improvement district bonds of a district, out of the proceeds
of sale of revenue bonds, and a district may pay off any outstanding local improvement bonds with such funds either by
purchase in the open market below their par value and
accrued interest or by call at par value and accrued interest at
the next succeeding interest payment date. The bonds may be
in any form, including bearer bonds or registered bonds as
provided by RCW 39.46.030.
(3) Notwithstanding subsection (1) of this section, district revenue bonds may be issued and sold in accordance
with chapter 39.46 RCW. [1996 c 230 § 703; 1987 c 449 §
14; 1983 c 167 § 160; 1977 ex.s. c 299 § 4; 1959 c 108 § 8;
1959 c 18 § 8. Prior: 1953 c 251 § 6; 1951 c 112 § 1; 1939 c
128 § 2, part; 1937 c 177 § 1, part; 1929 c 114 § 10, part; RRS
§ 11588, part. Cf. 1913 c 161 § 10, part. Formerly RCW
57.16.030.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
57.20.0181
57.20.0181 Additional revenue bonds for increased
cost of improvements. Whenever a district shall have
adopted a general comprehensive plan and bonds to defray
the cost thereof shall have been authorized by resolution of
the board of commissioners, and before the completion of the
improvements the board of commissioners shall find by resolution that the authorized bonds are not sufficient to defray
the cost of such improvements due to the increase of costs of
construction subsequent to the adoption of the plan, the board
of commissioners may by resolution authorize the issuance
and sale of additional revenue bonds for such purpose in
excess of those previously issued. [1996 c 230 § 704; 1977
ex.s. c 299 § 5; 1959 c 108 § 10. Formerly RCW 57.16.035.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.20.019
57.20.019 Additions and betterments. In the same
manner as provided for the adoption of an original general
comprehensive plan, a plan providing for additions and betterments to the original general comprehensive plan may be
adopted. Without limiting its generality "additions and betterments" shall include any necessary change in, amendment of,
or addition to the general comprehensive plan.
The district may incur a general indebtedness payable
from annual tax levies to be made in excess of the constitutional tax limitation for the construction of the additions and
betterments in the same way that general indebtedness may
be incurred for the construction of the original general comprehensive plan after submission to the voters of the entire
[Title 57 RCW—page 28]
district in the manner the original proposition to incur indebtedness was submitted as provided in RCW 57.20.105. Upon
ratification the additions and betterments may be carried out
by the commissioners to the extent specified or referred to in
the proposition to incur the general indebtedness.
The district may issue revenue bonds to pay for the construction of the additions and the betterments pursuant to resolution of the board of commissioners. [1996 c 230 § 705;
1984 c 186 § 52; 1977 ex.s. c 299 § 6; 1973 1st ex.s. c 195 §
70; 1959 c 108 § 9; 1959 c 18 § 9. Prior: 1953 c 251 § 7; 1951
2nd ex.s. c 25 § 2; 1951 c 112 § 2; 1939 c 128 § 2, part; 1937
c 177 § 1, part; 1929 c 114 § 10, part; RRS § 11588, part. Cf.
1913 c 161 § 10, part. Formerly RCW 57.16.040.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Purpose—1984 c 186: See note following RCW 39.46.110.
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
57.20.020
57.20.020 Revenue bonds—Special fund. (1) The
commissioners shall have power and are required to create a
special fund or funds for the sole purpose of paying the interest and principal of revenue bonds into which special fund or
funds the commissioners shall obligate and bind the district
to set aside and pay a fixed proportion of the gross revenues
of the water supply, sewer, or drainage system or any fixed
amount out of and not exceeding a fixed proportion of such
revenues, or a fixed amount or amounts without regard to any
fixed proportion, and such bonds and the interest thereof shall
be payable only out of such special fund or funds, and shall
be a lien and charge against all revenues and payments
received from any utility local improvement district or districts pledged to secure such bonds, subject only to operating
and maintenance expenses.
In creating any such special fund or funds the commissioners shall have due regard to the cost of operation and
maintenance of the plant or system as constructed or added to
and to any proportion or part of the revenue previously
pledged as a fund for the payment of bonds, warrants, or
other indebtedness, and shall not set aside into such special
fund a greater amount or proportion of the revenue and proceeds than in their judgment will be available over and above
such cost of maintenance and operation and the amount or
proportion, if any, of the revenue so previously pledged. Any
such bonds and interest thereon issued against any such fund
as provided in this section shall be a valid claim of the owner
thereof only as against the special fund and its fixed proportion or amount of the revenue pledged to such fund, and shall
not constitute an indebtedness of the district within the meaning of the constitutional provisions and limitations. Each
such bond shall state upon its face that it is payable from a
special fund, naming the fund and the resolution creating it.
Such bonds shall be sold in such manner, at such price, and at
such rate or rates of interest as the commissioners shall deem
for the best interests of the district, either at public or private
sale, and the commissioners may provide in any contract for
the construction and acquirement of the proposed improvement (and for the refunding of outstanding local improvement district obligations, if any) that payment therefor shall
be made in such bonds at par value thereof.
(2004 Ed.)
Finances
When any such special fund shall have been heretofore
or shall be hereafter created and any such bonds shall have
been heretofore or shall hereafter be issued against the same
a fixed proportion or a fixed amount out of and not to exceed
such fixed proportion, or a fixed amount or amounts without
regard to any fixed proportion, of revenue shall be set aside
and paid into the special fund as provided in the resolution
creating such fund or authorizing such bonds. In case any district shall fail thus to set aside and pay the fixed proportion or
amount, the owner of any bond payable from such special
fund may bring suit or action against the district and compel
such setting aside and payment.
(2) Revenue bonds payable from a special fund may be
issued and sold in accordance with chapter 39.46 RCW.
[1996 c 230 § 706; 1991 c 347 § 20; 1983 c 167 § 164; 1975
1st ex.s. c 25 § 3; 1970 ex.s. c 56 § 84; 1969 ex.s. c 232 § 88;
1959 c 108 § 11; 1939 c 128 § 3; RRS § 11588-1.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Purposes—1991 c 347: See note following RCW 90.42.005.
Severability—1991 c 347: See RCW 90.42.900.
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
Purpose—1970 ex.s. c 56: See note following RCW 39.52.020.
Validation—Saving—Severability—1969 ex.s. c 232: See notes following RCW 39.52.020.
Alternative authority to issue revenue bonds: RCW 39.46.150, 39.46.160.
Authority to adjust or delay rates or charges for low-income persons: RCW
57.08.014.
Funds for reserve purposes may be included in issue amount: RCW
39.44.140.
57.20.023
57.20.023 Covenants to guarantee payment of revenue bonds—Bonds payable from same source may be
issued on parity. The board of commissioners may make
such covenants as it may deem necessary to secure and guarantee the payment of the principal of and interest on revenue
bonds of the district, including but not being limited to covenants for the establishment and maintenance of adequate
reserves to secure or guarantee the payment of such principal
and interest; the protection and disposition of the proceeds of
sale of such bonds; the use and disposition of the gross revenues of the water supply system, sewer system, or drainage
system of the district and any additions or betterments thereto
or extensions thereof; the use and disposition of any utility
local improvement district assessments; the creation and
maintenance of funds for renewals and replacements of the
system; the establishment and maintenance of rates and
charges adequate to pay principal and interest of such bonds
and to maintain adequate coverage over debt service; the
maintenance, operation and management of the system and
the accounting, insuring and auditing of the business in connection therewith; the terms upon which such bonds or any of
them may be redeemed at the election of the district; limitations upon the right of the district to dispose of its system or
any part thereof; the appointment of trustees, depositaries and
paying agents to receive, hold, disburse, invest and reinvest
all or any part of the proceeds of sale of the bonds and all or
any part of the income, revenue and receipts of the district,
and the commissioners may make such other covenants as it
may deem necessary to accomplish the most advantageous
(2004 Ed.)
57.20.027
sale of such bonds. The board of commissioners may also
provide that revenue bonds payable out of the same source or
sources may later be issued on a parity with any revenue
bonds being issued and sold. [1996 c 230 § 707; 1959 c 108
§ 12.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.20.025
57.20.025 Refunding revenue bonds. The board of
commissioners of any district may by resolution provide for
the issuance of refunding revenue bonds to refund outstanding general obligation bonds and/or revenue bonds, or any
part thereof, and/or all outstanding local improvement district
bonds, at maturity thereof, or before maturity thereof if they
are subject to call for prior redemption or all of the holders
thereof consent thereto. The total interest cost to the district
over the life of the refunding bonds shall not exceed the total
cost to the district which the district would have incurred but
for such refunding over the remainder of the life of the bonds
to be refunded thereby. The refunding bonds may be
exchanged for the bonds to be refunded thereby, or may be
sold in such manner as the board of commissioners deems to
be for the best interest of the district, and the proceeds used,
except as hereinafter provided, exclusively for the purpose of
paying, retiring, and canceling the bonds to be refunded and
interest thereon.
All unpaid utility local improvement district assessments
payable into the revenue bond redemption fund established
for payment of the bonds to be refunded shall thereafter when
collected be paid into the revenue bond redemption fund
established for payment of the refunding revenue bonds.
Whenever local improvement district bonds have been
refunded as provided by RCW 57.20.018, or pursuant to this
section, all local improvement district assessments remaining
unpaid shall thereafter when collected be paid into the revenue bond redemption fund established for payment of the
refunding revenue bonds, and the cash balance, if any, in the
local improvement guaranty fund of the district and the proceeds received from any other assets owned by such fund
shall be used in whole or in part as a reserve fund for the
refunding revenue bonds or be transferred in whole or in part
to any other funds of the district as the board of commissioners may determine. If any warrants are outstanding against
the local improvement guaranty fund of the district at the
time of the issuance of such refunding revenue bonds, the
bonds shall be issued in an amount sufficient also to fund and
pay such outstanding warrants.
The provisions of RCW 57.20.020 shall apply to the
refunding revenue bonds issued under this title. [1996 c 230
§ 708; 1977 ex.s. c 299 § 8; 1959 c 108 § 13; 1953 c 251 §
17.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.20.027
57.20.027 Revenue warrants and revenue bond
anticipation warrants. Districts may also issue revenue
warrants and revenue bond anticipation warrants for the same
purposes for which such districts may issue revenue bonds.
The provisions of this chapter relating to the authorization,
terms, conditions, covenants, issuance and sale of revenue
bonds (exclusive of provisions relating to refunding) shall be
[Title 57 RCW—page 29]
57.20.030
Title 57 RCW: Water-Sewer Districts
applicable to such warrants. Districts issuing revenue bond
anticipation warrants may make covenants relative to the
issuance of revenue bonds to provide funds for the redemption of part or all of such warrants and may contract for the
sale of such bonds and warrants. [1996 c 230 § 709; 1975 1st
ex.s. c 25 § 5.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.20.030
57.20.030 Local improvement guaranty fund. Every
district in the state is authorized to create a fund for the purpose of guaranteeing, to the extent of such fund, and in the
manner hereinafter provided, the payment of all of its local
improvement bonds issued to pay for any local improvement
within its confines. Such fund shall be designated "Local
Improvement Guaranty Fund of the ". . . . . Water-Sewer District," ". . . . . Water District," ". . . . . Sewer District," or
". . . . . District No. . . . . .," and shall be established by resolution of the board of commissioners. For the purpose of
maintaining such fund, every district, after the establishment
thereof, shall at all times set aside and pay into such a fund
such proportion of the monthly gross revenues of the water
supply, sewer, or drainage system of such district as the commissioners thereof may direct by resolution. This proportion
may be varied from time to time as the commissioners deem
expedient or necessary. However, under the existence of the
conditions set forth in subsections (1) and (2) of this section,
then the proportion must be as specified in subsections (1)
and (2) of this section:
(1) Whenever any bonds of any local improvement district have been guaranteed under this section and RCW
57.20.080 and 57.20.090 and the guaranty fund does not have
a cash balance equal to twenty percent of all bonds originally
guaranteed under this section and RCW 57.20.080 and
57.20.090 (excluding issues which have been retired in full),
then twenty percent of the gross monthly revenues derived
from water, sewer, and drainage systems in the territory
included in the local improvement district (but not necessarily from users in other parts of the district as a whole) shall be
set aside and paid into the guaranty fund, except that whenever under the requirements of this subsection, the cash balance accumulates so that it is equal to twenty percent of all
bonds guaranteed, or to the full amount of all bonds guaranteed, outstanding and unpaid (which amount might be less
than twenty percent of the original total guaranteed), then no
further money need be set aside and paid into the guaranty
fund so long as the condition shall continue.
(2) Whenever any warrants issued against the guaranty
fund, as provided in this section, remain outstanding and
uncalled for lack of funds for six months from the date of
issuance thereof; or whenever any coupons or bonds guaranteed under this section and RCW 57.20.080 and 57.20.090
have been matured for six months and have not been
redeemed either in cash or by issuance and delivery of warrants upon the guaranty fund, then twenty percent of the gross
monthly revenues (or such portion thereof as the commissioners of the district determine will be sufficient to retire the
warrants or redeem the coupons or bonds in the ensuing six
months) derived from all water, sewer, and drainage system
users in the district shall be set aside and paid into the guaranty fund. However, whenever under the requirements of this
[Title 57 RCW—page 30]
subsection all warrants, coupons, or bonds specified in this
subsection have been redeemed, no further income needs to
be set aside and paid into the guaranty fund under the requirements of this subsection until and unless other warrants
remain outstanding and unpaid for six months or other coupons or bonds default.
(3) For the purposes of complying with the requirements
of setting aside and paying into the local improvement guaranty fund a proportion of the monthly gross revenues of the
water supply, sewer, or drainage system of any district, as
provided in subsections (1) and (2) of this section, that district shall bind and obligate itself to maintain and operate the
applicable system and further bind and obligate itself to
establish, maintain, and collect such rates for water, sewer, or
drainage as will produce gross revenues sufficient to maintain and operate that system and to make necessary provision
for the local improvement guaranty fund as specified by this
section and RCW 57.20.080 and 57.20.090. The district shall
alter its rates for water, sewer, and drainage service from time
to time and shall vary the same in different portions of its territory to comply with those requirements.
(4) Whenever any coupon or bond guaranteed by this
section shall mature and there shall not be sufficient funds in
the appropriate local improvement district bond redemption
fund to pay the same, then the applicable county treasurer
shall pay same from the local improvement guaranty fund of
the district; if there shall not be sufficient funds in the guaranty fund to pay same, then the same may be paid by issuance
and delivery of a warrant upon the local improvement guaranty fund.
(5) Whenever the cash balance in the local improvement
guaranty fund is insufficient for the required purposes, warrants drawing interest at a rate determined by the commissioners may be issued by the applicable county auditor,
against the fund to meet any liability accrued against it and
must be issued upon demand of the holders of any maturing
coupons and/or bonds guaranteed by this section, or to pay
for any certificates of delinquency for delinquent installments
of assessments as provided in subsection (6) of this section.
Guaranty fund warrants shall be a first lien in their order of
issuance upon the gross revenues set aside and paid into that
fund.
(6) Within twenty days after the date of delinquency of
any annual installment of assessments levied for the purpose
of paying the local improvement bonds of any district guaranteed under the provisions of this section, it shall be mandatory for the county treasurer of the county in which the real
property is located to compile a statement of all installments
delinquent, together with the amount of accrued interest and
penalty appurtenant to each of the installments. Thereupon
the applicable county treasurer shall forthwith purchase (for
the district) certificates of delinquency for all such delinquent
installments. Payment for all such certificates of delinquency
shall be made from the local improvement guaranty fund and
if there shall not be sufficient money in the fund to pay for
such certificates of delinquency, the applicable county treasurer shall accept the local improvement guaranty fund warrants in payment therefor. All of those certificates of delinquency shall be issued in the name of the local improvement
guaranty fund and all guaranty fund warrants issued in payment therefor shall be issued in the name of the appropriate
(2004 Ed.)
Finances
local improvement district fund. Whenever any market is
available and the commissioners of the district so direct, the
applicable county treasurer shall sell any certificates of delinquency belonging to the local improvement guaranty fund.
However, any such sale must not be for less than face value
thereof plus accrued interest from date of issuance to date of
sale.
(7) Certificates of delinquency, as provided in subsection
(6) of this section, shall be issued by the county treasurer of
the county in which the real property is located, shall bear
interest at the rate of ten percent per annum, shall be in each
instance for the face value of the delinquent installment, plus
accrued interest to date of issuance of certificate of delinquency, plus a penalty of five percent of such face value, and
shall set forth:
(a) Description of property assessed;
(b) Date installment of assessment became delinquent;
(c) Name of owner or reputed owner, if known.
The certificates of delinquency may be redeemed by the
owner of the property assessed at any time up to two years
from the date of foreclosure of such certificate of delinquency. If any such certificate of delinquency is not
redeemed on the second occurring first day of January subsequent to its issuance, the county treasurer who issued the certificate of delinquency shall then proceed to foreclose such
certificate of delinquency in the manner specified for the
foreclosure of the lien of local improvement assessments,
pursuant to chapter 35.50 RCW and if no redemption be
made within the succeeding two years shall execute and
deliver a deed conveying fee simple title to the property
described in the foreclosed certificate of delinquency. [1996
c 230 § 710; 1982 1st ex.s. c 17 § 20; 1981 c 156 § 20; 1937
c 102 § 1; 1935 c 82 § 1; RRS § 11589-1. Formerly RCW
57.20.030 through 57.20.070.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.20.080
57.20.080 Guaranty fund—Subrogation of district as
trustee. Whenever there shall be paid out of a guaranty fund
any sum on account of principal or interest upon a local
improvement bond, or on account of purchase of certificates
of delinquency, the district, as trustee for the fund, shall be
subrogated to all rights of the owner of the bonds, or any
interest, or delinquent assessment installments, so paid; and
the proceeds thereof, or of the assessment or assessments
underlying the same, shall become a part of the guaranty
fund. There shall also be paid into such guaranty fund the
interest received from the bank deposits of the fund, as well
as any surplus remaining in the local improvement funds
guaranteed by the guaranty fund, after the payment of all outstanding bonds payable primarily out of such local improvement funds. As among the several issues of bonds guaranteed
by the fund, no preference shall exist, but defaulted bonds
and any defaulted interest payments shall be purchased out of
the fund in the order of their presentation.
The commissioners of every district that establishes a
guaranty fund shall prescribe, by resolution, appropriate rules
and regulations for the guaranty fund, not inconsistent herewith. So much of the money of a guaranty fund as is necessary and is not required for other purposes under this section
and RCW 57.20.030 and 57.20.090 may, at the discretion of
(2004 Ed.)
57.20.105
the commissioners of the district, be used to purchase property at county tax foreclosure sales or from the county after
foreclosure in cases where such property is subject to unpaid
local improvement assessments securing bonds guaranteed
by the guaranty fund and such purchase is deemed necessary
for the purpose of protecting the guaranty fund. In such cases
the guaranty fund shall be subrogated to all rights of the district. After so acquiring title to real property, the district may
lease or resell and convey the same in the same manner that
county property is authorized to be leased or resold and for
such prices and on such terms as may be determined by resolution of the board of commissioners. Any provision of law to
the contrary notwithstanding, all proceeds resulting from
such resales shall belong to and be paid into the guaranty
fund. [1996 c 230 § 711; 1983 c 167 § 165; 1937 c 102 § 2;
1935 c 82 § 2; RRS § 11589-2.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
57.20.090
57.20.090 Rights and remedies of bond owner. The
owner of any local improvement bonds guaranteed under the
provisions of this section and RCW 57.20.030 and 57.20.080
shall not have any claim therefor against the district by which
the same is issued, except for payment from the special
assessments made for the improvement for which the local
improvement bonds were issued, and except as against the
local improvement guaranty fund of the district; and the district shall not be liable to any owner of such local improvement bond for any loss to the guaranty fund occurring in the
lawful operation thereof by the district. The remedy of the
owner of a local improvement bond, in case of nonpayment,
shall be confined to the enforcement of the assessment and to
the guaranty fund. A copy of the foregoing part of this section
shall be plainly written, printed or engraved on each local
improvement bond guaranteed by this section and RCW
57.20.030 and 57.20.080. The establishment of a local
improvement guaranty fund by any district shall not be
deemed at variance from any comprehensive plan heretofore
adopted by that district.
If any local improvement guaranty fund hereunder
authorized at any time has a balance therein in cash, and the
obligations guaranteed thereby have all been paid off, then
such balance shall be transferred to the maintenance fund of
the district. [1996 c 230 § 712; 1983 c 167 § 166; 1937 c 102
§ 3; 1935 c 82 § 3; RRS § 11589-3.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
57.20.105
57.20.105 Vote on general indebtedness. The commissioners may submit to the voters of the district at any general or special election, a proposition that the district incur a
general indebtedness payable from annual tax levies to be
made in excess of the constitutional tax limitation for the construction of any part or all of the improvements described in
its general comprehensive plan or plans. Elections shall be
held as provided in RCW 39.36.050. The proposition authorizing both the bond issue and imposition of excess bond
[Title 57 RCW—page 31]
57.20.110
Title 57 RCW: Water-Sewer Districts
retirement levies must be adopted by three-fifths of the voters
voting thereon, at which election the total number of persons
voting on the proposition shall constitute not less than forty
percent of the total number of votes cast in the district at the
last preceding general election. The bonds shall not be issued
to run for a period longer than thirty years from the date of the
issue. The bonds shall be issued and sold in accordance with
chapter 39.46 RCW.
Whenever the proposition to issue general obligation
bonds and impose such excess bond retirement levies has
been approved, there shall be levied by the officers or governing body charged with the duty of levying taxes, annual
levies in excess of the constitutional tax limitation sufficient
to meet the annual or semiannual payments of principal and
interest on the bonds upon all taxable property within the district. [1996 c 230 § 701; 1984 c 186 § 51; 1974 ex.s. c 31 §
1. Prior: 1973 1st ex.s. c 195 § 69; 1959 c 108 § 7; 1959 c 18
§ 7; prior: 1953 c 251 § 5; 1951 2nd ex.s. c 25 § 1; 1939 c 128
§ 2, part; 1937 c 177 § 1, part; 1929 c 114 § 10, part; RRS §
11588, part. Cf. 1913 c 161 § 10, part. Formerly RCW
57.16.020.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Purpose—1984 c 186: See note following RCW 39.46.110.
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
Limitation on
levies: State Constitution Art. 7 § 2; RCW 84.52.010, 84.52.050 through
84.52.056.
municipal corporation indebtedness: State Constitution Art. 8 § 6.
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Purpose—1984 c 186: See note following RCW 39.46.110.
Severability—Effective date—1970 ex.s. c 42: See notes following
RCW 39.36.015.
57.20.130
57.20.130 Bonds—Payment of interest. Any coupons
for the payment of interest on bonds of any district shall be
considered for all purposes as warrants drawn upon the general fund of the district issuing such bonds, and when presented to the treasurer of the county having custody of the
funds of such district at maturity, or thereafter, and when so
presented, if there are not funds in the treasury to pay the coupons, it shall be the duty of the county treasurer to endorse the
coupons as presented for payment, in the same manner as
county warrants are indorsed, and thereafter the coupons
shall bear interest at the same rate as the bonds to which they
were attached. When there are no funds in the treasury to
make interest payments on bonds not having coupons, the
overdue interest payment shall continue bearing interest at
the bond rate until it is paid, unless otherwise provided in the
proceedings authorizing the sale of the bonds. [1996 c 230 §
715; 1983 c 167 § 167; 1929 c 114 § 22; RRS § 11599. Cf.
1913 c 161 § 21.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Liberal construction—Severability—1983 c 167: See RCW
39.46.010 and note following.
57.20.135
57.20.110
57.20.110 Limitation of indebtedness. A district is
authorized and empowered by and through its board of commissioners to contract indebtedness for its purposes, and the
maintenance thereof not exceeding one-half of one percent of
the value of the taxable property in the district, as the term
"value of the taxable property" is defined in RCW 39.36.015.
[1996 c 230 § 713; 1970 ex.s. c 42 § 35; 1929 c 114 § 19;
RRS § 11596. Cf. 1913 c 161 § 18.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Severability—Effective date—1970 ex.s. c 42: See notes following
RCW 39.36.015.
Limitation on municipal corporation indebtedness: State Constitution Art. 8
§ 6.
57.20.120
57.20.120 Additional indebtedness—Ballot proposition. A district may contract indebtedness in excess of the
amount named in RCW 57.20.110, but not exceeding in
amount, together with existing indebtedness, two and onehalf percent of the value of the taxable property in that district, as the term "value of the taxable property" is defined in
RCW 39.36.015, and impose excess property tax levies to
retire the indebtedness whenever a ballot proposition authorizing the indebtedness and excess levies is approved as provided under Article VII, section 2, and Article VIII, section 6,
of the state Constitution, at an election to be held in the district in the manner provided by this title and RCW 39.36.050.
[1999 c 153 § 17; 1996 c 230 § 714; 1984 c 186 § 55; 1970
ex.s. c 42 § 36; 1929 c 114 § 20; RRS § 11597. Cf. 1913 c 161
§ 19.]
[Title 57 RCW—page 32]
57.20.135 Treasurer—Designation—Approval—
Powers and duties—Bond. Upon obtaining the approval of
the county treasurer, the board of commissioners of a district
with more than twenty-five hundred water customers or
sewer customers may designate by resolution some other person having experience in financial or fiscal matters as the
treasurer of the district. Such a treasurer shall possess all of
the powers, responsibilities, and duties of, and shall be subject to the same restrictions as provided by law for, the county
treasurer with regard to a district, and the county auditor with
regard to district financial matters. Such treasurer shall be
bonded for not less than twenty-five thousand dollars.
Approval by the county treasurer authorizing such a district
to designate its treasurer shall not be arbitrarily or capriciously withheld. [1996 c 230 § 716; 1988 c 162 § 11; 1983
c 57 § 4.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Ratification—1988 c 162 §§ 10 and 11: "Any action taken by a sewer
district treasurer or water district treasurer prior to March 21, 1988, and consistent with sections 10 and 11 of this act is ratified and confirmed." [1988 c
162 § 12.]
57.20.140
57.20.140 Maintenance or general fund and special
funds. The treasurer shall create and maintain a separate
fund designated as the maintenance fund or general fund of
the district into which shall be paid all money received by the
treasurer from the collection of taxes other than taxes levied
for the payment of general obligation bonds of the district and
all revenues of the district other than assessments levied in
local improvement districts or utility local improvement dis(2004 Ed.)
Contracts for System Extensions
tricts, and no money shall be disbursed therefrom except
upon warrants of the county auditor issued by authority of the
commissioners or upon a resolution of the commissioners
ordering a transfer to any other fund of the district. The treasurer also shall maintain such other special funds as may be
prescribed by the district, into which shall be placed such
money as the board of commissioners may by its resolution
direct, and from which disbursements shall be made upon
proper warrants of the county auditor issued against the same
by authority of the board of commissioners. [1999 c 153 §
18; 1996 c 230 § 717; 1983 c 57 § 3; 1959 c 108 § 14; 1929 c
114 § 23; RRS § 11600. Cf. 1913 c 161 § 22.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.22.010
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.20.170
57.20.170 Maintenance or general fund and special
funds—Loans from maintenance or general funds to construction funds or other funds. The board of commissioners of any district may, by resolution, authorize and direct a
loan or loans from maintenance funds or general funds of the
district to construction funds or other funds of the district, so
long as that loan or loans do not, in the opinion of the board
of commissioners, impair the ability of the district to operate
and maintain its water supply, sewer, drainage, or street lighting systems. [1996 c 230 § 721; 1959 c 108 § 17.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Chapter 57.22 RCW
CONTRACTS FOR SYSTEM EXTENSIONS
Chapter 57.22
57.20.150
57.20.150 Maintenance or general fund and special
funds—Use of surplus in maintenance or general fund.
Whenever a district has accumulated money in the maintenance fund or general fund of the district in excess of the
requirements of that fund, the board of commissioners may in
its discretion use any of that surplus money for any of the following purposes: (1) Redemption or servicing of outstanding
obligations of the district; (2) maintenance expenses of the
district; (3) construction or acquisition of any facilities necessary to carry out the purposes of the district; or (4) any other
proper district purpose. [1996 c 230 § 718; 1959 c 108 § 15.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.20.160
57.20.160 Maintenance or general fund and special
funds—Deposits and investments. Whenever there shall
have accumulated in any general or special fund of a district
money, the disbursement of which is not yet due, the board of
commissioners may, by resolution, authorize the treasurer to
deposit or invest such money in qualified public depositaries,
or to invest such money in any investment permitted at any
time by RCW 36.29.020. However, the county treasurer may
refuse to invest any district money the disbursement of which
will be required during the period of investment to meet outstanding obligations of the district. [1996 c 230 § 719; 1986
c 294 § 13; 1983 c 66 § 22; 1981 c 24 § 4; 1973 1st ex.s. c 140
§ 3; 1959 c 108 § 16.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Severability—1983 c 66: See note following RCW 39.58.010.
Public depositaries: Chapter 39.58 RCW.
57.20.165
57.20.165 Deposit account requirements. District
money shall be deposited by the district in any account,
which may be interest-bearing, subject to such requirements
and conditions as may be prescribed by the state auditor. The
account shall be in the name of the district except upon
request by the treasurer, the accounts shall be in the name of
the ". . .(name of county). . . county treasurer." The treasurer
may instruct the financial institutions holding the deposits to
transfer them to the treasurer at such times as the treasurer
may deem appropriate, consistent with regulations governing
and policies of the financial institution. [1996 c 230 § 720;
1981 c 24 § 2.]
(2004 Ed.)
Sections
57.22.010
57.22.020
57.22.030
57.22.040
57.22.050
Contracts—Conditions.
Reimbursement to owner.
Scope of reimbursement.
Reimbursement—Procedures.
District participation in financing project.
57.22.010
57.22.010 Contracts—Conditions. If the district
approves an extension to the system, the district shall contract
with owners of real estate located within the district boundaries, at an owner's request, for the purpose of permitting
extensions to the district's system to be constructed by such
owner at such owner's sole cost where such extensions are
required as a prerequisite to further property development.
The contract shall contain such conditions as the district may
require pursuant to the district's adopted policies and standards. The district shall request comprehensive plan approval
for such extension, if required, and connection of the extension to the district system is conditioned upon:
(1) Construction of such extension according to plans
and specifications approved by the district;
(2) Inspection and approval of such extension by the district;
(3) Transfer to the district of such extension without cost
to the district upon acceptance by the district of such extension;
(4) Payment of all required connection charges to the
district;
(5) Full compliance with the owner's obligations under
such contract and with the district's rules and regulations;
(6) Provision of sufficient security to the district to
ensure completion of the extension and other performance
under the contract;
(7) Payment by the owner to the district of all of the district's costs associated with such extension including, but not
limited to, the district's engineering, legal, and administrative
costs; and
(8) Verification and approval of all contracts and costs
related to such extension. [1996 c 230 § 801; 1989 c 389 §
11.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
[Title 57 RCW—page 33]
57.22.020
Title 57 RCW: Water-Sewer Districts
57.22.020 Reimbursement to owner. The contract
shall also provide, subject to the terms and conditions in this
section, for the reimbursement to the owner or the owner's
assigns for a period not to exceed fifteen years of a portion of
the costs of the facilities constructed pursuant to such contract from connection charges received by the district from
other property owners who subsequently connect to or use
the facilities within the fifteen-year period and who did not
contribute to the original cost of such facilities. [1996 c 230
§ 802; 1989 c 389 § 12.]
57.22.020
57.24.170
57.24.180
57.24.190
57.24.200
57.24.210
57.24.220
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Annexation of certain unincorporated territory—Authorized—
Hearing.
Annexation of certain unincorporated territory—Opportunity
to be heard—Effective date of annexation resolution—
Notice—Referendum.
Annexation of certain unincorporated territory—Referendum
authorized—Petition—Election—Effective date of annexation.
Expenditure of funds to provide certain information authorized—Limits.
Annexation of certain unincorporated territory with boundaries contiguous to two municipal corporations providing
water or sewer service—Procedure.
Assumption of substandard water system—Limited immunity
from liability.
57.24.001
57.22.030
57.22.030 Scope of reimbursement. The reimbursement shall be a pro rata share of construction and contract
administration costs of the project. Reimbursement for
projects shall include, but not be limited to, design, engineering, installation, and restoration. [1996 c 230 § 803; 1989 c
389 § 13.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.22.040
57.22.040 Reimbursement—Procedures. The procedures for reimbursement contracts shall be governed by the
following:
(1) A reimbursement area shall be formulated by the
board of commissioners within a reasonable time after the
acceptance of the extension. The reimbursement shall be
based upon a determination by the board of commissioners of
which parcels would require similar improvements upon
development.
(2) The contract must be recorded in the appropriate
county auditor's office after the final execution of the agreement. [1996 c 230 § 804; 1989 c 389 § 14.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.22.050 District participation in financing project.
As an alternative to financing projects under this chapter
solely by owners of real estate, districts may join in the
financing of improvement projects and may be reimbursed in
the same manner as the owners of real estate who participate
in the projects, if the board of commissioners has specified
the conditions of its participation in a resolution. [1996 c 230
§ 805; 1989 c 389 § 15.]
57.22.050
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Chapter 57.24
Chapter 57.24 RCW
ANNEXATION OF TERRITORY
Sections
57.24.001
57.24.010
57.24.020
57.24.040
57.24.050
57.24.060
57.24.070
57.24.080
57.24.090
57.24.100
Actions subject to review by boundary review board.
Annexation authorized—Petition—Notice of hearing.
Hearing procedure—Boundaries—Election, notice, judges.
Election—Qualification of voters.
Expense of election.
Petition method is alternative to election method.
Petition method—Petition—Signers—Content—Certain public properties excluded from local improvement districts.
Petition method—Hearing—Notice.
Petition method—Resolution providing for annexation.
Petition method—Effective date of annexation—Prior indebtedness.
[Title 57 RCW—page 34]
57.24.001 Actions subject to review by boundary
review board. Actions taken under this chapter may be subject to potential review by a boundary review board under
chapter 36.93 RCW. [1996 c 230 § 901; 1989 c 84 § 58.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.24.010
57.24.010 Annexation authorized—Petition—Notice
of hearing. Territory within the county or counties in which
a district is located, or territory adjoining or in close proximity to a district but which is located in another county, may be
annexed to and become a part of the district. All annexations
shall be accomplished in the following manner: Ten percent
of the number of registered voters residing in the territory
proposed to be annexed who voted in the last municipal general election may file a petition with the district commissioners and cause the question to be submitted to the voters of the
territory whether such territory will be annexed and become a
part of the district. If the commissioners concur in the petition, they shall file it with the county auditor of the county in
which all or the largest geographic portion of the real property proposed to be annexed is located, who shall, within ten
days, examine the signatures thereon and certify to the sufficiency or insufficiency thereof. If the area proposed to be
annexed is located in more than one county, the auditor of the
county in which the largest geographic portion of the area
proposed to be annexed is located shall be the lead auditor
and shall immediately transfer a copy of the petitions to the
auditor of each other county in which the area proposed to be
annexed is located. Within ten days after the lead auditor
received the petition, the auditors of these other counties shall
certify to the lead auditor: (1) The number of voters of that
county residing in the area proposed to be annexed who voted
at the last municipal general election; and (2) the number of
valid signatures on the petition of voters of that county residing in the area proposed to be annexed. The lead auditor shall
certify the sufficiency of the petition after receiving this
information. If the petition contains a sufficient number of
valid signatures, the lead county auditor shall transmit it,
together with a certificate of sufficiency attached thereto, to
the commissioners of the district.
If there are no registered voters residing in the territory
to be annexed, the petition may be signed by such a number
as appear of record to own at least a majority of the acreage
in the territory, and the petition shall disclose the total number of acres of land in the territory and the names of all record
owners of land therein. If the commissioners are satisfied as
to the sufficiency of the petition and concur therein, they
shall send it, together with their certificate of concurrence
(2004 Ed.)
Annexation of Territory
attached thereto to the county legislative authority of each
county in which the territory proposed to be annexed is
located.
The county legislative authority, upon receipt of a petition certified to contain a sufficient number of signatures of
registered voters, or upon receipt of a petition signed by such
a number as own at least a majority of the acreage, together
with a certificate of concurrence signed by the commissioners, at a regular or special meeting shall cause to be published
once a week for at least two weeks in a newspaper in general
circulation throughout the territory proposed to be annexed a
notice that the petition has been filed, stating the time of the
meeting at which it shall be presented, and setting forth the
boundaries of the territory proposed to be annexed. [1996 c
230 § 902; 1990 c 259 § 31; 1989 c 308 § 4; 1988 c 162 § 14;
1982 1st ex.s. c 17 § 21; 1959 c 18 § 15. Prior: 1951 2nd ex.s.
c 25 § 5; 1931 c 72 § 5, part; 1929 c 114 § 15, part; RRS §
11593, part. Cf. 1913 c 161 § 15, part.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.24.020
57.24.020 Hearing procedure—Boundaries—Election, notice, judges. When such petition is presented for
hearing, the legislative authority of each county in which the
territory proposed to be annexed is located shall hear the petition or may adjourn the hearing from time to time not exceeding one month in all, and any person, firm, or corporation
may appear before the county legislative authority and make
objections to the proposed boundary lines or to annexation of
the territory described in the petition. Upon a final hearing
each county legislative authority shall make such changes in
the proposed boundary lines within the county as it deems to
be proper and shall establish and define such boundaries and
shall find whether the proposed annexation as established by
the county legislative authority to the district will be conducive to the public health, welfare and convenience and will be
of special benefit to the land included within the boundaries
of the territory proposed to be annexed to the district. No
lands which will not, in the judgment of the county legislative
authority, be benefited by inclusion therein, shall be included
within the boundaries of the territory as so established and
defined. No change shall be made by the county legislative
authority in the boundary lines, including any territory outside of the boundary lines described in the petition. No person having signed such petition shall be allowed to withdraw
such person's name therefrom after the filing of the petition
with the board of commissioners.
Upon the entry of the findings of the final hearing each
county legislative authority, if it finds the proposed annexation to be conducive to the public health, welfare, and convenience and to be of special benefit to the land proposed to
be annexed and included within the boundaries of the district,
shall give notice of a special election to be held within the
boundaries of the territory proposed to be annexed to the district for the purpose of determining whether the same shall be
annexed to the district. The notice shall particularly describe
the boundaries established by the county legislative authority, and shall state the name of the district to which the territory is proposed to be annexed, and the notice shall be published in a newspaper of general circulation in the territory
proposed to be annexed at least once a week for a minimum
(2004 Ed.)
57.24.050
of two successive weeks prior to the election and shall be
posted for the same period in at least four public places
within the boundaries of the territory proposed to be annexed,
which notice shall designate the places within the territory
proposed to be annexed where the election shall be held, and
the proposition to the voters shall be expressed on ballots
which contain the words:
For Annexation to District
or
Against Annexation to District
The county legislative authority shall name the persons to act
as judges at that election. [1996 c 230 § 903; 1982 1st ex.s. c
17 § 22; 1959 c 18 § 16. Prior: 1931 c 72 § 5; 1929 c 114 §
15; RRS § 11593. Cf. 1913 c 161 § 15. Formerly RCW
57.24.010, 57.24.020, and 57.24.030.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.24.040
57.24.040 Election—Qualification of voters. (1) The
annexation election shall be held on the date designated in the
notice and shall be conducted in accordance with the general
election laws of the state. If the original petition for annexation is signed by qualified voters, then only qualified voters
at the date of election residing in the territory proposed to be
annexed, shall be permitted to vote at the election.
(2) If the original petition for annexation is signed by
property owners as provided for in this chapter, then no person shall be entitled to vote at that election unless at the time
of the filing of the original petition he or she owned land in
the district of record and in addition thereto at the date of
election shall be a qualified voter of the county in which such
district is located. It shall be the duty of the county auditor,
upon request of the county legislative authority, to certify the
names of all persons owning land in the district at the date of
the filing of the original petition as shown by the records of
the auditor's office; and at any such election the county auditor may require any such property owner offering to vote to
take an oath that the property owner is a qualified voter of the
county before the property owner shall be allowed to vote.
However, at any election held under the provisions of this
chapter an officer or agent of any corporation having its principal place of business in the county and owning land at the
date of filing the original petition in the district duly authorized in writing may cast a vote on behalf of such corporation.
When so voting the person shall file with the county auditor
such a written instrument of that person's authority.
(3) If the majority of the votes cast upon the question of
such election shall be for annexation, then the territory concerned shall immediately be and become annexed to such district and the same shall then forthwith be a part of the district,
the same as though originally included in that district. [1999
c 153 § 19; 1996 c 230 § 904; 1929 c 114 § 16; RRS § 115931.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.24.050
57.24.050 Expense of election. All elections held pursuant to this chapter, whether general or special, shall be con[Title 57 RCW—page 35]
57.24.060
Title 57 RCW: Water-Sewer Districts
ducted by the county auditor of the county in which the district is located. The expense of all such elections shall be paid
for out of the funds of such district. [1999 c 153 § 20; 1996 c
230 § 905; 1929 c 114 § 17; RRS § 11594. Cf. 1913 c 161 §
16.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.24.060
57.24.060 Petition method is alternative to election
method. The method of annexation provided for in RCW
57.24.070 through 57.24.100 shall be an alternative method
to that specified in RCW 57.24.010 through 57.24.050.
[1953 c 251 § 22.]
57.24.070
57.24.070 Petition method—Petition—Signers—
Content—Certain public properties excluded from local
improvement districts. As an alternative method of annexation, a petition for annexation of an area contiguous to a district may be made in writing, addressed to and filed with the
board of commissioners of the district to which annexation is
desired. It must be signed by the owners, according to the
records of the county auditor, of not less than sixty percent of
the area of land for which annexation is petitioned, excluding
county and state rights of way, parks, tidelands, lakes, retention ponds, and stream and water courses. Additionally, the
petition shall set forth a description of the property according
to government legal subdivisions or legal plats, and shall be
accompanied by a plat which outlines the boundaries of the
property sought to be annexed. Those county and state properties shall be excluded from local improvement districts or
utility local improvement districts in the annexed area and
from special assessments, rates, or charges of the district
except where service has been regulated and provided to such
properties. The owners of such property shall be invited to be
included within local improvement districts or utility local
improvement districts at the time they are proposed for formation. [1996 c 230 § 906; 1985 c 141 § 8; 1953 c 251 § 18.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.24.080 Petition method—Hearing—Notice. If the
petition for annexation filed with the board of commissioners
complies with the requirements of law, as proved to the satisfaction of the board of commissioners, it may entertain the
petition, fix the date for public hearing thereon, and cause
notice of the hearing to be published in one issue of a newspaper of general circulation in the area proposed to be
annexed and also posted in three public places within the area
proposed for annexation. The notice shall specify the time
and place of hearing and invite interested persons to appear
and voice approval or disapproval of the annexation. The
expense of publication and posting of the notice shall be
borne by the signers of the petition. [1953 c 251 § 19.]
57.24.080
57.24.090 Petition method—Resolution providing
for annexation. Following the hearing the board of commissioners shall determine by resolution whether annexation
shall be made. It may annex all or any portion of the proposed
area but may not include in the annexation any property not
57.24.090
[Title 57 RCW—page 36]
described in the petition. Upon passage of the resolution a
certified copy shall be filed with the legislative authority of
the county in which the annexed property is located. [1996 c
230 § 907; 1953 c 251 § 20.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.24.100
57.24.100 Petition method—Effective date of annexation—Prior indebtedness. Upon the date fixed in the resolution the area annexed shall become a part of the district.
No property within the limits of the territory so annexed
shall ever be taxed or assessed to pay any portion of the
indebtedness of the district to which it is annexed contracted
prior to or existing at the date of annexation; nor shall any
such property be released from any taxes or assessments levied against it or from liability for payment of outstanding
bonds or warrants issued prior to such annexation. [1953 c
251 § 21.]
57.24.170 Annexation of certain unincorporated territory—Authorized—Hearing. When there is, within a district, unincorporated territory containing less than one hundred acres and having at least eighty percent of the boundaries of such area contiguous to the district, the board of
commissioners may resolve to annex that territory to the district. The resolution shall describe the boundaries of the area
to be annexed, state the number of voters residing therein as
nearly as may be, and set a date for a public hearing on such
resolution for annexation. Notice of the hearing shall be
given by publication of the resolution at least once a week for
two weeks prior to the date of the hearing, in one or more
newspapers of general circulation within the district and one
or more newspapers of general circulation within the area to
be annexed. [1996 c 230 § 908; 1982 c 146 § 4.]
57.24.170
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.24.180 Annexation of certain unincorporated territory—Opportunity to be heard—Effective date of
annexation resolution—Notice—Referendum. On the
date set for hearing under RCW 57.24.170, residents or property owners of the area included in the resolution for annexation shall be afforded an opportunity to be heard. The board
of commissioners may provide by resolution for annexation
of the territory described in the resolution, but the effective
date of the resolution shall be not less than forty-five days
after the passage thereof. The board of commissioners shall
cause notice of the proposed effective date of the annexation,
together with a description of the property to be annexed, to
be published at least once each week for two weeks subsequent to passage of the resolution, in one or more newspapers
of general circulation within the district and in one or more
newspapers of general circulation within the area to be
annexed. Upon the filing of a timely and sufficient referendum petition under RCW 57.24.190, a referendum election
shall be held under RCW 57.24.190, and the annexation shall
be deemed approved by the voters unless a majority of the
votes cast on the proposition are in opposition thereto. After
the expiration of the forty-fifth day from but excluding the
date of passage of the annexation resolution, if no timely and
sufficient referendum petition has been filed, under RCW
57.24.180
(2004 Ed.)
Withdrawal of Territory
57.24.190, the area annexed shall become a part of the district
upon the date fixed in the resolution of annexation. [1996 c
230 § 909; 1982 c 146 § 5.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.24.190
57.24.190 Annexation of certain unincorporated territory—Referendum authorized—Petition—Election—
Effective date of annexation. The annexation resolution
under RCW 57.24.180 shall be subject to referendum for
forty-five days after the passage thereof. Upon the filing of a
timely and sufficient referendum petition with the board of
commissioners, signed by registered voters in number equal
to not less than ten percent of the registered voters in the area
to be annexed who voted in the last municipal general election, the question of annexation shall be submitted to the voters of such area in a general election if one is to be held
within ninety days or at a special election called for that purpose by the board of commissioners in accordance with
*RCW 29.13.010 and 29.13.020. Notice of that election shall
be given under RCW 57.24.020 and the election shall be conducted under RCW 57.24.040. The annexation shall be
deemed approved by the voters unless a majority of the votes
cast on the proposition are in opposition thereto.
After the expiration of the forty-fifth day from but
excluding the date of passage of the annexation resolution, if
no timely and sufficient referendum petition has been filed,
the area annexed shall become a part of the district upon the
date fixed in the resolution of annexation upon transmitting
the resolution to the county legislative authority. [1996 c 230
§ 910; 1990 c 259 § 32; 1982 c 146 § 6.]
*Reviser's note: RCW 29.13.010 and 29.13.020 were recodified as
RCW 29A.04.320 and 29A.04.330, respectively, pursuant to 2003 c 111 §
2401, effective July 1, 2004. RCW 29A.04.320 was subsequently repealed
by 2004 c 271 § 193.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.24.200
57.24.200 Expenditure of funds to provide certain
information authorized—Limits. A district may expend
funds to inform residents in areas proposed for annexation
into the district of the following:
(1) Technical information and data;
(2) The fiscal impact of the proposed improvement; and
(3) The types of improvements planned.
Expenditures under this section shall be limited to research,
preparation, printing, and mailing of the information. [1996
c 230 § 911; 1986 c 258 § 2.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.24.210
57.24.210 Annexation of certain unincorporated territory with boundaries contiguous to two municipal corporations providing water or sewer service—Procedure.
When there is unincorporated territory containing less than
one hundred acres and having at least eighty percent of the
boundaries of such area contiguous to two municipal corporations providing either water or sewer service, one of which
is a water-sewer district, the legislative authority of either of
the contiguous municipal corporations may resolve to annex
such territory to that municipal corporation, provided a
(2004 Ed.)
57.28.010
majority of the legislative authority of the other contiguous
municipal corporation concurs. In such event, the municipal
corporation resolving to annex such territory may proceed to
effect the annexation by complying with RCW 57.24.170
through 57.24.190. For purposes of this section, "municipal
corporation" means a water-sewer district, city, or town.
[2002 c 76 § 1; 1996 c 230 § 912; 1995 c 279 § 2; 1987 c 449
§ 17.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.24.220 Assumption of substandard water system—Limited immunity from liability. A district assuming responsibility for a water system that is not in compliance
with state or federal requirements for public drinking water
systems, and its agents and employees, are immune from
lawsuits or causes of action, based on noncompliance with
state or federal requirements for public drinking water systems, which predate the date of assuming responsibility and
continue after the date of assuming responsibility, provided
that the district has submitted and is complying with a plan
and schedule of improvements approved by the department
of health. This immunity shall expire on the earlier of the date
the plan of improvements is completed or four years from the
date of assuming responsibility. This immunity does not
apply to intentional injuries, fraud, or bad faith. [1996 c 230
§ 913; 1994 c 292 § 8.]
57.24.220
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Findings—Intent—1994 c 292: See note following RCW 57.04.050.
Chapter 57.28
Chapter 57.28 RCW
WITHDRAWAL OF TERRITORY
Sections
57.28.001
57.28.010
57.28.020
57.28.030
57.28.035
57.28.040
57.28.050
57.28.060
57.28.070
57.28.080
57.28.090
57.28.100
57.28.110
Actions subject to review by boundary review board.
Withdrawal authorized—Petition.
Petition of residents.
Petition of landowners.
Alternative procedure—Resolution.
Notice of hearing—Bond for costs.
Hearing—Findings.
Transmission to county legislative authorities.
Notice of hearing before county legislative authority.
Hearing—Findings.
Election on withdrawal.
Notice of election—Election—Canvass.
Taxes and assessments unaffected.
57.28.001 Actions subject to review by boundary
review board. Actions taken under this chapter may be subject to potential review by a boundary review board under
chapter 36.93 RCW. [1996 c 230 § 1001; 1989 c 84 § 59.]
57.28.001
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.28.010 Withdrawal authorized—Petition. Territory within a district may be withdrawn therefrom in the following manner and upon the following conditions: The petition for withdrawal shall be in writing and shall designate the
boundaries of the territory proposed to be withdrawn from
the district and shall be signed by at least twenty-five percent
of the qualified voters residing within the territory so designated who are qualified voters on the date of filing such peti57.28.010
[Title 57 RCW—page 37]
57.28.020
Title 57 RCW: Water-Sewer Districts
tion. The petition shall set forth that the territory proposed to
be withdrawn is of such location or character that water and
sewer services cannot be furnished to it by the district at reasonable cost, and shall further set forth that the withdrawal of
such territory will be of benefit to such territory and conducive to the general welfare of the balance of the district.
[1996 c 230 § 1002; 1941 c 55 § 1; Rem. Supp. 1941 §
11604-1.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.28.020
57.28.020 Petition of residents. The petition for withdrawal shall be filed with the county auditor of each county in
which the district is located, and after the filing no person
having signed the petition shall be allowed to withdraw the
person's name therefrom. Within ten days after such filing,
each county auditor shall examine and verify the signatures
of signers residing in the respective county. The petition shall
be transmitted to the auditor of the county in which all or the
major geographic portion of the district is located, who shall
certify to the sufficiency or insufficiency of the signatures. If
the area proposed to be withdrawn is located in more than one
county, the auditor of the county in which the largest geographic portion of the area proposed to be withdrawn is
located shall be the lead auditor and shall immediately transfer a copy of the petitions to the auditor of each other county
in which the area proposed to be withdrawn is located.
Within ten days after the lead auditor received the petition,
the auditors of these other counties shall certify to the lead
auditor: (1) The number of voters of that county residing in
the area proposed to be withdrawn who voted at the last
municipal general election; and (2) the number of valid signatures on the petition of voters of that county residing in the
area proposed to be withdrawn. The lead auditor shall certify
the sufficiency of the petition after receiving this information.
If such petition be found by such county auditor to contain
sufficient signatures, the petition, together with a certificate
of sufficiency attached thereto, shall be transmitted to the
board of commissioners of the district. [1996 c 230 § 1003;
1982 1st ex.s. c 17 § 23; 1941 c 55 § 2; Rem. Supp. 1941 §
11604-2.]
through 57.28.030, the withdrawal of territory within a district may be commenced by a resolution of the board of commissioners that sets forth boundaries of the territory to be
withdrawn and sets a date for the public hearing required
under RCW 57.28.050. Upon the final hearing, the board of
commissioners shall make such changes in the proposed
boundaries as they deem proper, except that no changes in the
boundary lines may be made by the board of commissioners
to include lands not within the boundaries of the territory as
described in such resolution.
Whenever the board of commissioners proposes to commence the withdrawal of any portion of its territory located
within a city or town using the alternative procedures herein
authorized, it shall first notify such city or town of their [its]
intent to withdraw the territory. If the legislative authority of
the city or town takes no action within sixty days of receipt of
notification, the district may proceed with the resolution
method.
If the city or town legislative authority disapproves of
use of the alternative procedures, the board of commissioners
may proceed using the process established under RCW
57.28.010 through 57.28.030.
A withdrawal procedure commenced under this section
shall be subject to the procedures and requirements set forth
in RCW 57.28.040 through 57.28.110. [1996 c 230 § 1005;
1985 c 153 § 1.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.28.040
57.28.030 Petition of landowners. In the event there
are no qualified voters residing within the territory proposed
to be withdrawn, the petition for withdrawal may be signed
by such persons as appear of record to own at least a majority
of the acreage within such territory, in which event the petition shall also state the total number of acres and the names of
all record owners of the land within such territory. The petition so signed shall be filed with the board of commissioners
of the district, and after such filing no person having signed
the same shall be allowed to withdraw that person's name.
[1996 c 230 § 1004; 1941 c 55 § 3; Rem. Supp. 1941 §
11604-3.]
57.28.040 Notice of hearing—Bond for costs. Upon
receipt by the board of commissioners of a petition and certificate of sufficiency of the auditor, or if the petition is signed
by landowners and the board of commissioners is satisfied as
to the sufficiency of the signatures thereon, it shall at a regular or special meeting fix a date for hearing on the petition
and give notice that the petition has been filed, stating the
time and place of the meeting of the board of commissioners
at which the petition will be heard and setting forth the
boundaries of the territory proposed to be withdrawn. The
notice shall be published at least once a week for two successive weeks in a newspaper of general circulation therein, and
if no such newspaper is printed in the county, then in some
newspaper of general circulation in the county and district.
Any additional notice of the hearing may be given as the
board of commissioners may by resolution direct.
Prior to fixing the time for a hearing on any such petition, the board of commissioners in its discretion may require
the petitioners to furnish a satisfactory bond conditioned that
the petitioners shall pay all costs incurred by the district in
connection with the petition, including the cost of an election
if one is held pursuant thereto, and should the petitioners fail
or refuse to post such a bond, if one is required by the district
board of commissioners, then there shall be no duty on the
part of the board of commissioners to act upon the petition.
[1996 c 230 § 1006; 1985 c 469 § 59; 1951 c 112 § 3; 1941 c
55 § 4; Rem. Supp. 1941 § 11604-4.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.28.030
57.28.035
57.28.035 Alternative procedure—Resolution. As an
alternative procedure to those set forth in RCW 57.28.010
[Title 57 RCW—page 38]
57.28.050
57.28.050 Hearing—Findings. The petition for withdrawal shall be heard at the time and place specified in such
(2004 Ed.)
Withdrawal of Territory
notice or the hearing may be adjourned from time to time, not
exceeding one month in all, and any person may appear at
such hearing and make objections to the withdrawal of such
territory or to the proposed boundary lines thereof. Upon
final hearing on the petition for withdrawal, the board of
commissioners of the district shall make such changes in the
proposed boundary lines as it deems to be proper, except that
no changes in the boundary lines shall be made by the board
of commissioners to include lands not within the boundaries
of the territory as described in such petition. In establishing
and defining such boundaries the board of commissioners
shall exclude any property which is then being furnished with
water, sewer, or drainage service by the district or which is
included in any distribution or collection system the construction of which is included within any duly established
local improvement district or utility local improvement district, and the territory as finally established and defined must
be substantial in area and consist of adjoining or contiguous
properties. The board of commissioners shall thereupon
make and by resolution adopt findings of fact as to the following questions:
(1) Would the withdrawal of such territory be of benefit
to such territory?
(2) Would such withdrawal be conducive to the general
welfare of the balance of the district?
Such findings shall be entered in the records of the district, together with any recommendations the board of commissioners may by resolution adopt. [1999 c 153 § 21; 1996
c 230 § 1007; 1986 c 109 § 1; 1941 c 55 § 5; Rem. Supp. 1941
§ 11604-5.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
57.28.100
are established and defined in the findings or recommendations of the board of commissioners of the district. [1996 c
230 § 1009; 1982 1st ex.s. c 17 § 25; 1941 c 55 § 7; Rem.
Supp. 1941 § 11604-7.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.28.080 Hearing—Findings. The petition shall be
heard at the time and place specified in the notice, or the hearing may be adjourned from time to time, not exceeding one
month in all, and any person may appear at the hearing and
make objections to the withdrawal of the territory. Upon final
hearing on the petition the county legislative authority shall
thereupon make, enter, and by resolution adopt its findings of
fact on the questions set forth in RCW 57.28.050. If the findings of fact answer the questions affirmatively, and if they are
the same as the findings made by the district commissioners,
then the county legislative authority shall by resolution
declare that the territory be withdrawn from that district, and
thereupon the territory shall be withdrawn and excluded from
that district the same as if it had never been included therein
except for the lien of taxes as hereinafter set forth. However,
the boundaries of the territory withdrawn shall be the boundaries established and defined by the district board of commissioners and shall not be altered or changed by the county legislative authority unless the unanimous consent of the district
commissioners be given in writing to any such alteration or
change. [1996 c 230 § 1010; 1941 c 55 § 8; Rem. Supp. 1941
§ 11604-8.]
57.28.080
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.28.090
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.28.060
57.28.060 Transmission to county legislative authorities. Within ten days after the final hearing the board of
commissioners of the district shall transmit to the county legislative authority of each county in which the district is
located the petition for withdrawal, together with a copy of
the findings and recommendations of the board of commissioners of the district certified by the secretary of the district
to be a true and correct copy of such findings and recommendations as the same appear on the records of the district.
[1996 c 230 § 1008; 1982 1st ex.s. c 17 § 24; 1941 c 55 § 6;
Rem. Supp. 1941 § 11604-6.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.28.070
57.28.070 Notice of hearing before county legislative
authority. Upon receipt of the petition and certified copy of
the findings and recommendations adopted by the district
commissioners, the county legislative authority of each
county in which the district is located at a regular or special
meeting shall fix a time and place for hearing thereon and
shall cause to be published at least once a week for two or
more weeks in successive issues of a newspaper of general
circulation in the district, a notice that such petition has been
presented to the county legislative authority stating the time
and place of the hearing thereon, setting forth the boundaries
of the territory proposed to be withdrawn as such boundaries
(2004 Ed.)
57.28.090 Election on withdrawal. If the findings of
any county legislative authority answer any of the questions
of fact set forth in RCW 57.28.050 in the negative, or if any
of the findings of the county legislative authority are not the
same as the findings of the district board of commissioners
upon the same question, then in either of such events, the
petition for withdrawal shall be deemed denied. Thereupon,
and in such event, the county legislative authority of each
county in which the district is located shall by resolution
cause a special election to be held not less than thirty days or
more than sixty days from the date of the final hearing of any
county legislative authority upon the petition for withdrawal,
at which election the proposition expressed on the ballots
shall be substantially as follows:
"Shall the territory established and defined by the district
board of commissioners at its meeting held on the . . . . . .
(insert date of final hearing of district board of commissioners upon the petition for withdrawal) be withdrawn from district . . . . . . (naming it).
YES '
NO '"
[1996 c 230 § 1011; 1982 1st ex.s. c 17 § 26; 1941 c 55 § 9;
Rem. Supp. 1941 § 11604-9.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.28.100
57.28.100 Notice of election—Election—Canvass.
Notice of the election shall be posted and published in the
[Title 57 RCW—page 39]
57.28.110
Title 57 RCW: Water-Sewer Districts
same manner provided by law for the posting and publication
of notice of elections to annex territory to districts. The territory described in the notice shall be that established and
defined by the district board of commissioners. All qualified
voters residing within the district shall have the right to vote
at the election. If a majority of the votes cast favor the withdrawal from the district of such territory, then within ten days
after the official canvass of the election the county legislative
authority of each county in which the district is located shall
by resolution establish that the territory has been withdrawn,
and the territory shall thereupon be withdrawn and excluded
from the district the same as if it had never been included
therein except for the lien of any taxes as hereinafter set forth.
[1996 c 230 § 1012; 1982 1st ex.s. c 17 § 27; 1941 c 55 § 10;
Rem. Supp. 1941 § 11604-10.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.28.110
57.28.110 Taxes and assessments unaffected. Taxes
or assessments levied or assessed against property located in
territory withdrawn from a district shall remain a lien and be
collected as by law provided when the taxes or assessments
are levied or assessed prior to the withdrawal or when the levies or assessments are duly made to provide revenue for the
payment of general obligations or general obligation bonds of
the district duly incurred or issued prior to the withdrawal.
[1996 c 230 § 1013; 1941 c 55 § 11; Rem. Supp. 1941 §
11604-11.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Chapter 57.32 RCW
CONSOLIDATION OF DISTRICTS—TRANSFER OF
PART OF DISTRICT
Chapter 57.32
Sections
57.32.001
57.32.010
57.32.020
57.32.021
57.32.022
57.32.023
57.32.024
57.32.130
57.32.160
Actions subject to review by boundary review board.
Consolidation authorized—Petition method—Resolution
method.
Certificate of sufficiency.
Procedure upon receipt of certificate of sufficiency—Agreement, contents—Comprehensive plan.
Certification of agreement—Election, notice and conduct.
When consolidation effective—Cessation of former districts—Rights and powers of consolidated district.
Vesting of funds and property in consolidated district—Outstanding indebtedness.
Commissioners—Number.
Transfer of part of district—Procedure.
Assumption of jurisdiction over water or sewer district by city: Chapter
35.13A RCW.
posed to be consolidated may petition the board of commissioners of their respective districts to cause the question to be
submitted to the voters of the districts proposed to be consolidated; or (2) the board of commissioners of each of the districts proposed to be consolidated may by resolution determine that the consolidation of the districts shall be conducive
to the public health, welfare, and convenience and to be of
special benefit to the lands of the districts. [1996 c 230 §
1102; 1989 c 308 § 11; 1982 1st ex.s. c 17 § 28; 1967 ex.s. c
39 § 1; 1943 c 267 § 1; Rem. Supp. 1943 § 11604-20.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.32.020
57.32.020 Certificate of sufficiency. If the consolidation proceedings are initiated by petitions, upon the filing of
such petitions with the boards of commissioners of the districts, the boards of commissioners of each district shall file
such petitions with the auditor of the county in which all or
the largest geographic portion of the respective districts is
located, who shall within ten days examine and verify the signatures of the signers residing in the county. If the districts
proposed to be consolidated include areas located in more
than one county, the auditor of the county in which the largest
geographic portion of the consolidating districts is located
shall be the lead auditor and shall immediately transfer a copy
of the petitions to the auditor of each other county in which
the consolidating districts are located. Within ten days after
the lead auditor received the petition, the auditors of these
other counties shall certify to the lead auditor: (1) The number of voters of that county residing in each consolidating district; and (2) the number of valid signatures on the petition of
voters of that county residing in each consolidating district.
The lead auditor shall certify the sufficiency of the petition
after receiving this information. If all of such petitions shall
be found to contain a sufficient number of signatures, the
county auditor shall transmit the same, together with a certificate of sufficiency attached thereto, to the board of commissioners of each of the districts proposed for consolidation.
If there are no voters residing in one or more of the districts proposed to be consolidated, such petitions may be
signed by such a number of landowners as appear of record to
own at least a majority of the acreage in the pertinent district,
and the petitions shall disclose the total number of acres of
land in that district and shall also contain the names of all
record owners of land therein. [1996 c 230 § 1103; 1982 1st
ex.s. c 17 § 30; 1967 ex.s. c 39 § 2; 1943 c 267 § 2; Rem.
Supp. 1943 § 11604-21.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.32.001
57.32.001 Actions subject to review by boundary
review board. Actions taken under this chapter may be subject to potential review by a boundary review board under
chapter 36.93 RCW. [1996 c 230 § 1101; 1989 c 84 § 60.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.32.010
57.32.010 Consolidation authorized—Petition
method—Resolution method. Two or more districts may
be joined into one consolidated district. The consolidation
may be initiated in either of the following ways: (1) Ten percent of the voters residing within each of the districts pro[Title 57 RCW—page 40]
57.32.021
57.32.021 Procedure upon receipt of certificate of
sufficiency—Agreement, contents—Comprehensive plan.
Upon receipt by the boards of commissioners of the districts
proposed for consolidation, hereinafter referred to as the
"consolidating districts", of the lead county auditor's certificate of sufficiency of the petitions, or upon adoption by the
boards of commissioners of the consolidating districts of
their resolutions for consolidation, the boards of commissioners of the consolidating districts shall, within ninety days,
enter into an agreement providing for consolidation. The
agreement shall set forth the method and manner of consoli(2004 Ed.)
Merger of Districts
dation, a comprehensive plan or scheme of water supply,
sewer, and drainage services for the consolidated district, and
if the comprehensive plan or scheme of water supply, sewer,
and drainage services provides that one or more of the consolidating districts or the proposed consolidated district issue
revenue bonds for either the construction or other costs of any
part or all of the comprehensive plan, or both, then the details
thereof shall be set forth. The requirement that a comprehensive plan or scheme of water supply, sewer, and drainage services for the consolidated district be set forth in the agreement for consolidation shall be satisfied if the existing comprehensive plans or schemes of the consolidating districts are
incorporated therein by reference and any changes or additions thereto are set forth in detail. [1996 c 230 § 1104; 1967
ex.s. c 39 § 8.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Chapter 57.36
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.32.024
57.32.024 Vesting of funds and property in consolidated district—Outstanding indebtedness. Upon the formation of any consolidated district, all funds, rights, and
property, real and personal, of the former districts, shall vest
in and become the property of the consolidated district.
Unless the agreement for consolidation provides to the contrary, any outstanding indebtedness of any form, owed by the
districts, shall remain the obligation of the area of the original
debtor district and the board of commissioners of the consolidated district shall make such levies, assessments, or charges
for service upon that area or the users therein as shall pay off
the indebtedness at maturity. [1996 c 230 § 1107; 1967 ex.s.
c 39 § 11.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.32.022
57.32.022 Certification of agreement—Election,
notice and conduct. The boards of commissioners of the
consolidating districts shall certify the agreement to the
county auditors of the respective counties in which the districts are located. A special election shall be called by the
county auditors for the purpose of submitting to the voters of
each of the consolidating districts the proposition of whether
or not the several districts shall be consolidated into one district. The proposition shall give the title of the proposed consolidated district. Notice of the election shall be given and the
election conducted in accordance with the general election
laws. [1996 c 230 § 1105; 1994 c 223 § 71; 1982 1st ex.s. c
17 § 31; 1967 ex.s. c 39 § 9.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.32.023
57.32.130
57.32.130 Commissioners—Number. The commissioners of the districts consolidated into any new consolidated district shall become commissioners thereof until their
respective terms of office expire or until they resign from
office if the resignation is before the expiration of their terms
of office. At each election of commissioners following the
consolidation, only one position shall be filled, so that as the
terms of office expire, the total number of commissioners in
the consolidated district shall be reduced to three. However,
if the agreement provides that the consolidated district eventually will be governed by a five-member board of commissioners, one commissioner shall be elected to a six-year term
of office at the first district general election following the
consolidation, two commissioners shall be elected to six-year
terms of office at the second district general election following the consolidation, and two commissioners shall be elected
to six-year terms of office at the third district general election
following the consolidation. [1996 c 230 § 1108; 1985 c 141
§ 9; 1943 c 267 § 13; Rem. Supp. 1943 § 11604-32.]
57.32.023 When consolidation effective—Cessation
of former districts—Rights and powers of consolidated
district. If at the election a majority of the voters in each of
the consolidating districts vote in favor of the consolidation,
the consolidation shall be authorized. The consolidation shall
be effective and the consolidating districts shall cease to exist
and shall then be and become a new district and municipal
corporation of the state of Washington, upon the certification
of the election results. The name of the new district shall be
". . . . . Water-Sewer District," ". . . . . Water District," ". . . . .
Sewer District," or ". . . . . District No. . . . . .," which shall be
the name appearing on the ballot. The district shall have all
and every power, right, and privilege possessed by other
water-sewer, sewer, or water districts of the state of Washington. The district may issue revenue bonds to pay for the construction of any additions and betterments set forth in the
comprehensive plan of water supply, sewer, and drainage services contained in the agreement for consolidation and any
future additions and betterments to the comprehensive plan
of water supply, sewer, and drainage services, as its board of
district commissioners shall by resolution adopt, without submitting a proposition therefor to the voters of the district.
[1999 c 153 § 22; 1996 c 230 § 1106; 1994 c 223 § 72; 1982
1st ex.s. c 17 § 32; 1967 ex.s. c 39 § 10.]
Sections
Part headings not law—1999 c 153: See note following RCW
57.04.050.
57.36.001
57.36.010
(2004 Ed.)
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.32.160
57.32.160 Transfer of part of district—Procedure. A
part of one district may be transferred into an adjacent district
if the area can be better served thereby. Such transfer can be
accomplished by a petition, directed to both districts, signed
by the owners according to the records of the county auditor
of not less than sixty percent of the area of land to be transferred. If a majority of the commissioners of each district
approves the petition, copies of the approving resolutions
shall be filed with the county legislative authority which shall
act upon the petition as a proposed action in accordance with
RCW 57.02.040. [1996 c 230 § 1109; 1987 c 449 § 18.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Chapter 57.36
Chapter 57.36 RCW
MERGER OF DISTRICTS
Actions subject to review by boundary review board.
Merger of districts authorized.
[Title 57 RCW—page 41]
57.36.001
57.36.020
57.36.030
57.36.040
57.36.050
57.36.060
Title 57 RCW: Water-Sewer Districts
Initiation of merger—Procedure.
Agreement—Certification to county auditor—Election—
Notice, conduct.
When merger effective—Cessation of merging district—Commissioners.
Vesting of funds and property in merger district—Outstanding
indebtedness.
Persons serving on both boards to hold only one position after
merger.
57.36.001
57.36.001 Actions subject to review by boundary
review board. Actions taken under this chapter may be subject to potential review by a boundary review board under
chapter 36.93 RCW. [1996 c 230 § 1201; 1989 c 84 § 61.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.36.010
57.36.010 Merger of districts authorized. Whenever
one or more districts desire to merge into another district, the
district or districts desiring to merge into the other district
shall be referred to as the "merging district" or "merging districts" and the district into which the merging district or districts desire to merge shall be referred to as the "merger district." After the merger, the merger district shall survive
under its original name or number. [1996 c 230 § 1202; 1989
c 308 § 12; 1982 1st ex.s. c 17 § 29; 1967 ex.s. c 39 § 3; 1961
c 28 § 1.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.36.020
57.36.020 Initiation of merger—Procedure. A
merger of districts may be initiated in either of the following
ways:
(1) Whenever the boards of commissioners of districts
determine by resolution that the merger of such districts shall
be conducive to the public health, welfare, and convenience
and to be of special benefit to the lands of such districts.
(2) Whenever ten percent of the voters residing within
the merging district or districts petition the board of commissioners of the merging district or districts for a merger, and
the board of commissioners of the merger district determines
by resolution that the merger of the districts shall be conducive to the public health, welfare, and convenience of the districts. [1996 c 230 § 1203; 1967 ex.s. c 39 § 4; 1961 c 28 § 2.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.36.030
57.36.030 Agreement—Certification to county auditor—Election—Notice, conduct. Whenever a merger is initiated in either of the two ways provided under this chapter,
the boards of commissioners of the districts shall enter into an
agreement providing for the merger. The agreement must be
entered into within ninety days following completion of the
last act in initiation of the merger.
The respective boards of commissioners shall certify the
agreement to the county auditor of each county in which the
districts are located. Each county auditor shall call a special
election for the purpose of submitting to the voters of the
respective districts the proposition of whether the merging
district or districts shall be merged into the merger district.
Notice of the elections shall be given and the elections conducted in accordance with the general election laws. [1996 c
[Title 57 RCW—page 42]
230 § 1204; 1982 1st ex.s. c 17 § 33; 1967 ex.s. c 39 § 5; 1961
c 28 § 3.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.36.040
57.36.040 When merger effective—Cessation of
merging district—Commissioners. If at such election a
majority of the voters of the merging district or districts shall
vote in favor of the merger, the merger shall be authorized.
The merger shall be effective and the merging district or districts shall cease to exist and shall become a part of the
merger district, upon the certification of the election results.
The commissioners of the merging district or districts shall
hold office as commissioners of the new merged district until
their respective terms of office expire or until they resign
from office if the resignation is before the expiration of their
terms of office. The election of commissioners in the merger
district after the merger shall occur as provided in RCW
57.32.130 in a consolidated district after the consolidation.
[1999 c 153 § 23; 1996 c 230 § 1205; 1982 c 104 § 2; 1967
ex.s. c 39 § 6; 1961 c 28 § 4.]
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.36.050
57.36.050 Vesting of funds and property in merger
district—Outstanding indebtedness. All funds and property, real and personal, of the merging district or districts,
shall vest in and become the property of the merger district.
Unless the agreement of merger provides to the contrary, any
outstanding indebtedness of any form, owed by the districts,
shall remain the obligation of the area of the original debtor
district; and the commissioners of the merger district shall
make such levies, assessments, or charges for service upon
such area or the users therein as shall pay off such indebtedness at maturity. [1996 c 230 § 1207; 1967 ex.s. c 39 § 7;
1961 c 28 § 5.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.36.060
57.36.060 Persons serving on both boards to hold
only one position after merger. A person who serves on the
board of commissioners of a merging district and a merger
district shall hold only one position on the board of commissioners of the merger district and shall only receive compensation, expenses, and benefits that are available to a single
commissioner. [1996 c 230 § 1206; 1988 c 162 § 4. Formerly
RCW 57.40.135.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Chapter 57.42 RCW
DISPOSITION OF PROPERTY TO PUBLIC
UTILITY DISTRICT
Chapter 57.42
Sections
57.42.010
57.42.020
57.42.030
Authorized.
Disposition must be in public interest—Filings—Indebtedness.
Hearing—Notice—Decree.
(2004 Ed.)
Voluntary Contributions to Assist Low-Income Customers
57.42.010
57.42.010 Authorized. Subject to the provisions of
RCW 57.42.020 and 57.42.030, any district created under the
provisions of this title may sell, transfer, exchange, lease or
otherwise dispose of any property, real or personal, or property rights, including but not limited to the title to real property, to a public utility district in the same county on such
terms as may be mutually agreed upon by the board of commissioners of each district. [1996 c 230 § 1301; 1973 1st
ex.s. c 56 § 1.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.42.020
57.42.020 Disposition must be in public interest—Filings—Indebtedness. No district shall dispose of its property
to a public utility district unless the respective board of commissioners of each district shall determine by resolution that
such disposition is in the public interest and conducive to the
public health, welfare, and convenience. Copies of each resolution, together with copies of the proposed disposition
agreement, shall be filed with the legislative authority of the
county in which the district is located and with the superior
court of that county. Unless the proposed agreement provides
otherwise, any outstanding indebtedness of any form owed
by the water district shall remain the obligation of the area of
the district, and the board of commissioners of the public utility district shall be empowered to make such levies, assessments, or charges upon that area or the water, sewer, or drainage users therein as shall pay off the indebtedness at maturity.
[1996 c 230 § 1302; 1973 1st ex.s. c 56 § 2.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.42.030
57.42.030 Hearing—Notice—Decree. Within ninety
days after the resolutions and proposed agreement have been
filed with the court, the court shall fix a date for a hearing and
shall direct that notice of the hearing be given by publication.
After reviewing the proposed agreement and considering
other evidence presented at the hearing, the court may determine by decree that the proposed disposition is in the public
interest and conducive to the public health, welfare, and convenience. In addition, the decree shall authorize the payment
of all or a portion of the indebtedness of the district relating
to property disposed of under such decree. Pursuant to the
court decree, the district shall dispose of its property under
the terms of the disposition agreement with the public utility
district. [1996 c 230 § 1303; 1973 1st ex.s. c 56 § 3.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Chapter 57.46 RCW
VOLUNTARY CONTRIBUTIONS TO ASSIST
LOW-INCOME CUSTOMERS
Chapter 57.46
Sections
57.46.010
57.46.020
57.46.030
57.46.010
Voluntary contributions to assist low-income residential customers—Administration.
Disbursement of contributions—Quarterly report.
Contributions not considered commingling of funds.
57.46.010 Voluntary contributions to assist lowincome residential customers—Administration. A district
(2004 Ed.)
Chapter 57.90
may include along with, or as part of its regular customer billings, a request for voluntary contributions to assist qualified
low-income residential customers of the district in paying
their district bills. All funds received by the district in
response to such requests shall be transmitted to the grantee
of the department of community, trade, and economic development which administers federally funded energy assistance
programs for the state in the district's service area or to a
charitable organization within the district's service area. All
such funds shall be used solely to supplement assistance to
low-income residential customers of the district in paying
their district bills. The grantee or charitable organization shall
be responsible to determine which of the district's customers
are qualified for low-income assistance and the amount of
assistance to be provided to those who are qualified. [1996 c
230 § 1401; 1995 c 399 § 149; 1993 c 45 § 5.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.46.020
57.46.020 Disbursement of contributions—Quarterly report. All assistance provided under this chapter shall
be disbursed by the grantee or charitable organization. Where
possible the district shall be paid on behalf of the customer by
the grantee or the charitable organization. When direct vendor payment is not feasible, a check shall be issued jointly
payable to the customer and the district. The availability of
funds for assistance to a district's low-income customers as a
result of voluntary contributions shall not reduce the amount
of assistance for which the district's customers are eligible
under the federally funded energy assistance programs
administered by the grantee of the department of community,
trade, and economic development within the district's service
area. The grantee or charitable organization shall provide the
district with a quarterly report on January 15th, April 15th,
July 15th, and October 15th which includes information concerning the total amount of funds received from the district,
the names of all recipients of assistance from these funds, the
amount received by each recipient, and the amount of funds
received from the district currently on hand and available for
future low-income assistance. [1996 c 230 § 1402; 1995 c
399 § 150; 1993 c 45 § 6.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.46.030
57.46.030 Contributions not considered commingling of funds. Contributions received under a program
implemented by a district in compliance with this chapter
shall not be considered a commingling of funds. [1996 c 230
§ 1403; 1993 c 45 § 7.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Chapter 57.90 RCW
DISINCORPORATION OF DISTRICTS IN COUNTIES
WITH 210,000 POPULATION OR MORE
Chapter 57.90
Sections
57.90.001
57.90.010
57.90.020
57.90.030
57.90.040
Actions subject to review by boundary review board.
Disincorporation authorized.
Proceedings, how commenced—Public hearings.
Findings—Order—Supervision of liquidation.
Distribution of assets.
[Title 57 RCW—page 43]
57.90.001
57.90.050
57.90.100
Title 57 RCW: Water-Sewer Districts
Assessments to retire indebtedness.
Disposal of real property on abandonment of irrigation district
right of way—Right of adjacent owners.
Dissolution of
port districts: RCW 53.46.060.
water-sewer districts: Chapter 57.04 RCW.
of any assets and the satisfaction of any outstanding indebtedness. [1996 c 230 § 1504; 1963 c 55 § 3.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.90.040
57.90.001
57.90.001 Actions subject to review by boundary
review board. Actions taken under this chapter may be subject to potential review by a boundary review board under
chapter 36.93 RCW. [1996 c 230 § 1501; 1989 c 84 § 63.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.90.010
57.90.010 Disincorporation authorized. Water-sewer,
park and recreation, metropolitan park, county rural library,
cemetery, flood control, mosquito control, diking and drainage, irrigation or reclamation, weed, health, or fire protection
districts, and any air pollution control authority or regional
fire protection service authority, hereinafter referred to as
"special districts," which are located wholly or in part within
a county with a population of two hundred ten thousand or
more may be disincorporated when the district has not
actively carried out any of the special purposes or functions
for which it was formed within the preceding consecutive
five-year period. [2004 c 129 § 13; 1999 c 153 § 24; 1996 c
230 § 1502; 1991 c 363 § 137; 1979 ex.s. c 30 § 11; 1963 c
55 § 1.]
Captions not law—Severability—2004 c 129: See RCW 52.26.900
and 52.26.901.
Part headings not law—1999 c 153: See note following RCW
57.04.050.
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
Purpose—Captions not law—1991 c 363: See notes following RCW
2.32.180.
57.90.020
57.90.020 Proceedings, how commenced—Public
hearings. Upon the filing with the county legislative authority of each county in which the district is located of a resolution of any governmental unit calling for the disincorporation
of a special district, or upon the filing with the county legislative authority of each county in which the district is located
of the petition of twenty percent of the voters within a special
district calling for the disincorporation of the special district,
the county legislative authority shall hold public hearings to
determine whether or not any services have been provided
within a consecutive five year period and whether the best
interests of all persons concerned will be served by the proposed dissolution of the special district. [1996 c 230 § 1503;
1982 1st ex.s. c 17 § 35; 1963 c 55 § 2.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.90.030
57.90.030 Findings—Order—Supervision of liquidation. If the county legislative authority finds that no services
have been provided within the preceding consecutive fiveyear period and that the best interests of all persons concerned will be served by disincorporating the special district,
it shall order that such action be taken, specify the manner in
which it is to be accomplished and supervise the liquidation
[Title 57 RCW—page 44]
57.90.040 Distribution of assets. If a special district is
disincorporated the proceeds of the sale of any of its assets,
together with money on hand in the treasury of the special
district, shall after payment of all costs and expenses and all
outstanding indebtedness be paid to the county treasurer to be
placed to the credit of the school district, or districts, in which
such special district is situated. [1996 c 230 § 1505; 1963 c
55 § 4.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.90.050
57.90.050 Assessments to retire indebtedness. If a
special district is disincorporated and the proceeds of the sale
of any of its assets, together with money on hand in the treasury of the special district, are insufficient to retire any outstanding indebtedness, together with all costs and expenses of
liquidation, the county legislative authority shall levy assessments in the manner provided by law against the property in
the special district in amounts sufficient to retire the indebtedness and pay the costs and expenses. [1996 c 230 § 1506;
1963 c 55 § 5.]
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
57.90.100
57.90.100 Disposal of real property on abandonment
of irrigation district right of way—Right of adjacent owners. Whenever as the result of abandonment of an irrigation
district right of way real property held by an irrigation district
is to be sold or otherwise disposed of, notice shall be given to
the owners of the lands adjoining that real property and such
owners shall have the right of first refusal to purchase at the
appraised price all or any part of the real property to be sold
or otherwise disposed of which adjoins or is adjacent to their
land.
Real property to be sold or otherwise disposed of under
this section shall have been first appraised by the county
assessor or by a person designated by the county assessor.
Notice under this section shall be sufficient if sent by
registered mail to the owner at the address shown in the tax
records of the county in which the land is situated. Notice
under this section shall be in addition to any notice required
by law.
After sixty days from the date of sending of notice, if no
applications for purchase have been received by the irrigation
district or other person or entity sending notice, the rights of
first refusal of owners of adjoining lands shall be deemed to
have been waived, and the real property may be disposed of
or sold.
If two or more owners of adjoining lands apply to purchase the same real property, or apply to purchase overlapping parts of the real property, the respective rights of the
applicants may be determined in the superior court of the
county in which the real property is situated. The court may
divide the real property in question between some or all of the
applicants or award the whole to one applicant, as justice may
require. [1996 c 230 § 1507; 1971 ex.s. c 125 § 1.]
(2004 Ed.)
Disincorporation of Districts in Counties with 210,000 Population or More
57.90.100
Part headings not law—Effective date—1996 c 230: See notes following RCW 57.02.001.
(2004 Ed.)
[Title 57 RCW—page 45]
Title 58
Title 58
BOUNDARIES AND PLATS
Chapters
58.04 Boundaries.
58.08 Plats—Recording.
58.09 Surveys—Recording.
58.10 Defective plats legalized.
58.17 Plats—Subdivisions—Dedications.
58.18 Assessor's plats.
58.19 Land development act.
58.20 Washington coordinate system.
58.22 State base mapping system.
58.24 State agency for surveys and maps—Fees.
58.28 Townsites on United States land—Acquisition of
land.
Auditor, duties
index of instruments, how made and kept: RCW 65.04.050.
instruments to be recorded or filed: RCW 65.04.030.
Auditor's fees (recording plats): RCW 36.18.010.
Boundaries: See notes following chapter 58.04 RCW digest.
Cemetery property—Plats: Chapter 68.24 RCW.
Cities and towns
petition required on incorporation: Chapter 35.02 RCW.
streets
annual report to secretary of transportation: RCW 35.21.260.
vacation: Chapter 35.79 RCW.
Counties
abandoned state highways (description): RCW 36.75.090.
county commissioners—Record of surveys: RCW 36.32.380.
roads and bridges—Establishment: Chapter 36.81 RCW.
vacation: Chapter 36.87 RCW.
Diking districts—Plat of reclaimed land—Benefits to be determined and
paid: RCW 85.05.540.
Diking, drainage, and sewerage improvement districts, platting: Chapter
85.08 RCW.
Highway plat book: RCW 36.80.050.
Levy for continuous benefits, diking districts—Roll of property protected:
RCW 85.18.020.
Private ditches and drains—Report of viewers—Plat: RCW 85.28.050.
Chapter 58.04
Chapter 58.04 RCW
BOUNDARIES
Sections
58.04.001
58.04.003
58.04.007
58.04.011
58.04.015
58.04.020
58.04.030
58.04.040
Purpose—Remedies.
Definition of surveyor.
Affected landowners may resolve dispute over location of a
point or line—Procedures.
Authorization to enter upon any land or waters for purpose of
resolving dispute.
Disturbing a survey monument—Penalty—Cost.
Suit to establish lost or uncertain boundaries—Mediation may
be required.
Commissioners—Survey and report.
Proceedings, conduct of—Costs.
Cities and towns
jurisdiction over adjacent waters (boundaries adjacent to or fronting
thereon): RCW 35.21.160.
proposed boundaries required on incorporation: Chapter 35.02 RCW.
Counties
actions to establish boundaries: Chapter 36.05 RCW.
boundaries: Chapter 36.04 RCW.
roads and bridges—Establishment—Monuments at government survey
corners: RCW 36.86.050.
survey map, field notes and profiles: RCW 36.81.060.
Dike or ditch as common boundary: RCW 85.28.140.
Diking and drainage districts—Boundaries: Title 85 RCW.
Fences: Chapter 16.60 RCW.
Flood control districts—Boundaries: Title 86 RCW.
Harbor line commission: RCW 79.90.070, 79.92.010.
Public waterway districts—Boundaries: Chapter 91.08 RCW.
Reclamation districts of one million acres—Boundaries to be fixed: RCW
89.30.082.
Relocation of inner harbor line: RCW 79.92.020.
Shellfish cultivation or other aquaculture use—Survey and boundary markers: RCW 79.96.040.
Soil conservation—Annexation of territory—Boundary change: RCW
89.08.180.
Survey of county boundaries: RCW 36.04.400.
Tidelands, shorelands—Boundary of shorelands when water lowered: RCW
79.94.220.
Property tax—Listing—Plat of irregular subdivided tracts: RCW 84.40.170.
Public lands
right of way for roads and streets (plat to be filed): RCW 79.36.440.
sales, leases—Maximum area of urban or suburban state land—Platting:
RCW 79.11.250.
vacation of plat by commissioner: RCW 79.11.260.
vacation of waterways—Extension of streets: RCW 79.93.060.
vacation on petition—Preference right to purchase: RCW 79.11.270.
58.04.001 Purpose—Remedies. The purpose of this
chapter is to provide alternative procedures for fixing boundary points or lines when they cannot be determined from the
existing public record and landmarks or are otherwise in dispute. This chapter does not impair, modify, or supplant any
other remedy available at law or equity. [1996 c 160 § 1.]
58.04.001
Real property and conveyances: Title 64 RCW.
58.04.003 Definition of surveyor. As used in this chapter, "surveyor" means every person authorized to practice the
profession of land surveying under the provisions of chapter
18.43 RCW. [1996 c 160 § 2.]
58.04.003
Reclamation and irrigation in United States reclamation areas—Farm units
authorized—Size—Plats—Excess land: RCW 89.12.040.
Reclamation districts of one million acres—General improvement and divisional districts—Survey: Chapter 89.30 RCW.
Second class tide or shore lands detached from uplands: RCW 79.94.270.
Shellfish cultivation or other aquaculture use—Survey markers: RCW
79.96.040.
Tide and shore lands, platting, replatting: Chapter 79.94 RCW.
Tidelands, ownership by state: State Constitution Art. 17.
(2004 Ed.)
58.04.007 Affected landowners may resolve dispute
over location of a point or line—Procedures. Whenever a
point or line determining the boundary between two or more
parcels of real property cannot be identified from the existing
58.04.007
[Title 58 RCW—page 1]
58.04.011
Title 58 RCW: Boundaries and Plats
public record, monuments, and landmarks, or is in dispute,
the landowners affected by the determination of the point or
line may resolve any dispute and fix the boundary point or
line by one of the following procedures:
(1) If all of the affected landowners agree to a description
and marking of a point or line determining a boundary, they
shall document the agreement in a written instrument, using
appropriate legal descriptions and including a survey map,
filed in accordance with chapter 58.09 RCW. The written
instrument shall be signed and acknowledged by each party
in the manner required for a conveyance of real property. The
agreement is binding upon the parties, their successors,
assigns, heirs and devisees and runs with the land. The agreement shall be recorded with the real estate records in the
county or counties in which the affected parcels of real estate
or any portion of them is located;
(2) If all of the affected landowners cannot agree to a
point or line determining the boundary between two or more
parcels of real estate, any one of them may bring suit for
determination as provided in RCW 58.04.020. [1996 c 160 §
3.]
58.04.011
58.04.011 Authorization to enter upon any land or
waters for purpose of resolving dispute. Any surveyor
authorized by the court and the surveyor's employees may,
without liability for trespass, enter upon any land or waters
and remain there while performing the duties as required in
RCW 58.04.001 through 58.04.007 and this section. The persons named in this section may, without liability for trespass,
investigate, construct, or place a monument or reference
monuments for the position of any land boundary mark or
general land office corner or mark and subdivisional corners
thereof. Persons entering lands under the authority of RCW
58.04.001 through 58.04.007 and this section must exercise
due care not to damage property while on land or waters performing their duties, and are liable for property damage, if
any, caused by their negligence or willful misconduct. Where
practical, the persons named in this section must announce
and identify themselves and their intention before entering
upon private property in the performance of their duties.
[1996 c 160 § 4.]
(2) The superior court may order the parties to utilize
mediation before the civil action is allowed to proceed.
[1996 c 160 § 8; 1886 p 104 § 1; RRS § 947.]
58.04.030
58.04.030 Commissioners—Survey and report. Said
court may, in its discretion, appoint commissioners, not
exceeding three competent and disinterested persons, one or
more of whom shall be practical surveyors, residents of the
state, which commissioners shall be, before entering upon
their duties, duly sworn to perform their said duties faithfully,
and the said commissioners shall thereupon, survey, erect,
establish and properly mark said boundaries, and return to the
court a plat of said survey, and the field notes thereof,
together with their report. Said report shall be advisory and
either party may except thereto, in the same manner as to a
report of referees. [1886 p 105 § 2; RRS § 948.]
58.04.040
58.04.040 Proceedings, conduct of—Costs. The proceedings shall be conducted as other civil actions, and the
court, on final decree, shall apportion the costs of the proceedings equitably, and the cost so apportioned, shall be a
lien upon the said lands, severally, as against any transfer or
incumbrance made of, or attaching to said lands, from the
time of the filing of the complaint: PROVIDED, A notice of
lis pendens, is filed in the auditor's office of the proper
county, in accordance with law. [1886 p 105 § 3; RRS §
949.]
Chapter 58.08
Chapter 58.08 RCW
PLATS—RECORDING
Sections
58.08.010
58.08.015
58.08.020
58.08.030
58.08.035
58.08.040
58.08.050
Town plat to be recorded—Requisites.
Effect of donation marked on plat.
Additions.
Plats to be acknowledged—Certificate that taxes and assessments are paid.
Platted streets, public highways—Lack of compliance, penalty.
Deposit to cover anticipated taxes and assessments.
Official plat—Platted streets as public highways.
Cities and towns—Recording of ordinance and plat on effective date of
reduction: RCW 35.16.050.
Record of platted tide and shore lands: RCW 79.94.040.
58.04.015
58.04.015 Disturbing a survey monument—Penalty—Cost. A person who intentionally disturbs a survey
monument placed by a surveyor in the performance of the
surveyor's duties is guilty of a gross misdemeanor and is liable for the cost of the reestablishment. [1996 c 160 § 5.]
58.04.020
58.04.020 Suit to establish lost or uncertain boundaries—Mediation may be required. (1) Whenever the
boundaries of lands between two or more adjoining proprietors have been lost, or by time, accident or any other cause,
have become obscure, or uncertain, and the adjoining proprietors cannot agree to establish the same, one or more of the
adjoining proprietors may bring a civil action in equity, in the
superior court, for the county in which such lands, or part of
them are situated, and that superior court, as a court of equity,
may upon the complaint, order such lost or uncertain boundaries to be erected and established and properly marked.
[Title 58 RCW—page 2]
58.08.010
58.08.010 Town plat to be recorded—Requisites.
Any person or persons, who may hereafter lay off any town
within this state, shall, previous to the sale of any lots within
such town, cause to be recorded in the recorder's office of the
county wherein the same may lie, a plat of said town, with the
public grounds, (if any there be,) streets, lanes and alleys,
with their respective widths properly marked, and the lots
regularly numbered, and the size stated on said plat. [Code
1881 § 2328; 1862 p 431 § 1; 1857 p 25 § 1; RRS § 9288.]
58.08.015
58.08.015 Effect of donation marked on plat. Every
donation or grant to the public, or to any individual or individuals, religious society or societies, or to any corporation or
body politic, marked or noted as such on the plat of the town,
or wherein such donation or grant may have been made, shall
be considered, to all intents and purposes, as a quitclaim deed
to the said donee or donees, grantee or grantees, for his, her
(2004 Ed.)
Surveys—Recording
or their use, for the purposes intended by the donor or donors,
grantor or grantors, as aforesaid. [Code 1881 § 2329; 1862 p
431 § 2; 1857 p 26 § 2; RRS § 9310. Formerly RCW
58.08.060.]
58.08.020
58.08.020 Additions. Every person hereinafter laying
off any lots in addition to any town, shall, previous to the sale
of such lots, have the same recorded under the like regulations as are provided for recording the original plat of said
town, and thereafter the same shall be considered an addition
thereto. [Code 1881 § 2330; 1862 p 431 § 3; 1857 p 26 § 3;
RRS § 9289.]
58.08.030
58.08.030 Plats to be acknowledged—Certificate that
taxes and assessments are paid. Every person whose duty
it may be to comply with the foregoing regulations shall at or
before the time of offering such plat for record, acknowledge
the same before the auditor of the proper county, or any other
officer who is authorized by law to take acknowledgment of
deeds, a certificate of which acknowledgment shall be
indorsed on or annexed to such plat and recorded therewith.
In all cases where any person or persons, corporation or corporations shall desire to file a plat, map, subdivision or replat
of any property or shall desire to vacate the whole or any portion of any existing plat, map, subdivision or replat, such person or persons, corporation or corporations must, at the time
of filing the same for record or of filing a petition for vacation
thereof, file therewith a certificate from the proper officer or
officers who may be in charge of the collection of taxes for
which the property affected may be liable at that date, that all
taxes which have been levied and become chargeable against
such property at such date have been duly paid, satisfied and
discharged and must file therewith a certificate from the
proper officer or officers, who may be in charge of the collections, that all delinquent assessments for which the property
affected may be liable at that date and that all special assessments assessed against said property, which, under the plat
filed, become streets, alleys and other public places, have
been paid. [1927 c 188 § 1; 1893 c 129 § 1; Code 1881 §
2331; 1862 p 431 § 4; 1857 p 26 § 4; RRS § 9290.]
Acknowledgments: Chapter 64.08 RCW.
Taxes collected by treasurer—Dates of delinquency: RCW 84.56.020.
58.08.035
58.08.035 Platted streets, public highways—Lack of
compliance, penalty. All streets, lanes and alleys, laid off
and recorded in accordance with *the foregoing provisions,
shall be considered, to all intents and purposes, public highways, and any person who may lay off any town or any addition to any town in this state, and neglect or refuse to comply
with the requisitions aforesaid, shall forfeit and pay for the
use of said town, for every month he may delay a compliance
with the provisions of this chapter, a sum not exceeding one
hundred dollars, nor less than five dollars, to be recovered by
civil action, in the name of the treasurer of the county. [Code
1881 § 2332; 1862 p 431 § 5; 1857 p 26 § 5; no RRS.]
*Reviser's note: "the foregoing provisions" refer to earlier sections of
chapter 178, Code of 1881 codified (as amended) in RCW 58.08.010 through
58.08.030.
Platted streets as public highways: RCW 58.08.050.
Regulation of surveys and plats: RCW 58.10.040.
(2004 Ed.)
Chapter 58.09
58.08.040
58.08.040 Deposit to cover anticipated taxes and
assessments. Prior to any person recording a plat, replat,
altered plat, or binding site plan subsequent to May 31st in
any year and prior to the date of the collection of taxes in the
ensuing year, the person shall deposit with the county treasurer a sum equal to the product of the county assessor's latest
valuation on the property less improvements in such subdivision multiplied by the current year's dollar rate increased by
twenty-five percent on the property platted. The treasurer's
receipt shall be evidence of the payment. The treasurer shall
appropriate so much of the deposit as will pay the taxes and
assessments on the property when the levy rates are certified
by the assessor using the value of the property at the time of
filing a plat, replat, altered plat, or binding site plan, and in
case the sum deposited is in excess of the amount necessary
for the payment of the taxes and assessments, the treasurer
shall return, to the party depositing, the amount of excess.
[1997 c 393 § 11; 1994 c 301 § 16; 1991 c 245 § 14; 1989 c
378 § 2; 1973 1st ex.s. c 195 § 74; 1969 ex.s. c 271 § 34; 1963
c 66 § 1; 1909 c 200 § 1; 1907 c 44 § 1; 1893 c 129 § 2; RRS
§ 9291.]
Severability—Effective dates and termination dates—Construction—1973 1st ex.s. c 195: See notes following RCW 84.52.043.
Severability—1969 ex.s. c 271: See RCW 58.17.910.
Assessment date: RCW 84.40.020.
Property taxes—Collection of taxes: Chapter 84.56 RCW.
58.08.050
58.08.050 Official plat—Platted streets as public
highways. Whenever any city or town has been surveyed
and platted and a plat thereof showing the roads, streets and
alleys has been filed in the office of the auditor of the county
in which such city or town is located, such plat shall be
deemed the official plat of such city, or town, and all roads,
streets and alleys in such city or town as shown by such plat,
be and the same are declared public highways: PROVIDING, That nothing herein shall apply to any part of a city or
town that has been vacated according to law. [Code 1881 §
3049; 1877 p 314 § 1; RRS § 9292.]
Platted streets, public highways—Lack of compliance, penalty: RCW
58.08.035.
Streets and alleys over first class tidelands—Control of: RCW 35.21.250.
Streets over tidelands declared public highways: RCW 35.21.230.
Chapter 58.09
Chapter 58.09 RCW
SURVEYS—RECORDING
Sections
58.09.010
58.09.020
58.09.030
58.09.040
58.09.050
58.09.060
58.09.070
58.09.080
58.09.090
58.09.100
58.09.110
58.09.120
58.09.130
58.09.140
58.09.900
Purpose—Short title.
Definitions.
Compliance with chapter required.
Records of survey—Contents—Filing—Replacing corner, filing record.
Records of survey—Processing—Requirements.
Records of survey, contents—Record of corner, information.
Coordinates—Map showing control scheme required.
Certificates—Required—Forms.
When record of survey not required.
Filing fee.
Duties of county auditor.
Monuments—Requirements.
Monuments disturbed by construction activities—Procedure—Requirements.
Noncompliance grounds for revocation of land surveyor's
license.
Severability—1973 c 50.
[Title 58 RCW—page 3]
58.09.010
Title 58 RCW: Boundaries and Plats
58.09.010
58.09.010 Purpose—Short title. The purpose of this
chapter is to provide a method for preserving evidence of
land surveys by establishing standards and procedures for
monumenting and for recording a public record of the surveys. Its provisions shall be deemed supplementary to existing laws relating to surveys, subdivisions, platting, and
boundaries.
This chapter shall be known and may be cited as the
"Survey Recording Act". [1973 c 50 § 1.]
58.09.020
58.09.020 Definitions. As used in this chapter:
(1) "Land surveyor" shall mean every person authorized
to practice the profession of land surveying under the provisions of chapter 18.43 RCW, as now or hereafter amended.
(2) "Washington coordinate system" shall mean that system of plane coordinates as established and designated by
chapter 58.20 RCW.
(3) "Survey" shall mean the locating and monumenting
in accordance with sound principles of land surveying by or
under the supervision of a licensed land surveyor, of points or
lines which define the exterior boundary or boundaries common to two or more ownerships or which reestablish or
restore general land office corners. [1973 c 50 § 2.]
58.09.030
58.09.030 Compliance with chapter required. Any
land surveyor engaged in the practice of land surveying may
prepare maps, plats, reports, descriptions, or other documentary evidence in connection therewith.
Every map, plat, report, description, or other document
issued by a licensed land surveyor shall comply with the provisions of this chapter whenever such map, plat, report,
description, or other document is filed as a public record.
It shall be unlawful for any person to sign, stamp, or seal
any map, report, plat, description, or other document for filing under this chapter unless he be a land surveyor. [1973 c
50 § 3.]
58.09.040
58.09.040 Records of survey—Contents—Filing—
Replacing corner, filing record. After making a survey in
conformity with sound principles of land surveying, a land
surveyor may file a record of survey with the county auditor
in the county or counties wherein the lands surveyed are situated.
(1) It shall be mandatory, within ninety days after the
establishment, reestablishment or restoration of a corner on
the boundary of two or more ownerships or general land
office corner by survey that a land surveyor shall file with the
county auditor in the county or counties wherein the lands
surveyed are situated a record of such survey, in such form as
to meet the requirements of this chapter, which through
accepted survey procedures, shall disclose:
(a) The establishment of a corner which materially varies
from the description of record;
(b) The establishment of one or more property corners
not previously existing;
(c) Evidence that reasonable analysis might result in
alternate positions of lines or points as a result of an ambiguity in the description;
(d) The reestablishment of lost government land office
corners.
[Title 58 RCW—page 4]
(2) When a licensed land surveyor, while conducting
work of a preliminary nature or other activity that does not
constitute a survey required by law to be recorded, replaces
or restores an existing or obliterated general land office corner, it is mandatory that, within ninety days thereafter, he
shall file with the county auditor in the county in which said
corner is located a record of the monuments and accessories
found or placed at the corner location, in such form as to meet
the requirements of this chapter. [1973 c 50 § 4.]
58.09.050 Records of survey—Processing—Requirements. The records of survey to be filed under authority of
this chapter shall be processed as follows:
(1)(a) The record of survey filed under RCW
58.09.040(1) shall be an original map, eighteen by twentyfour inches, that is legibly drawn in black ink on mylar and is
suitable for producing legible prints through scanning, microfilming, or other standard copying procedures.
(b) The following are allowable formats for the original
that may be used in lieu of the format set forth under (a) of
this subsection:
(i) Photo mylar with original signatures;
(ii) Any standard material as long as the format is compatible with the auditor's recording process and records storage system. This format is only allowed in those counties that
are excepted from permanently storing the original document
as required in RCW 58.09.110(5);
(iii) An electronic version of the original if the county
has the capability to accept a digital signature issued by a
licensed certification authority under chapter 19.34 RCW or
a certification authority under the rules adopted by the Washington state board of registration for professional engineers
and land surveyors, and can import electronic files into an
imaging system. The electronic version shall be a standard
raster file format acceptable to the county.
A two inch margin on the left edge and a one-half inch
margin on other edges of the map shall be provided. The
auditor shall reject for recording any maps not suitable for
producing legible prints through scanning, microfilming, or
other standard copying procedures.
(2) Information required by RCW 58.09.040(2) shall be
filed on a standard form eight and one-half inches by fourteen
inches as designed and prescribed by the department of natural resources. The auditor shall reject for recording any
records of corner information not suitable for producing legible prints through scanning, microfilming, or other standard
copying procedures. An electronic version of the standard
form may be filed if the county has the capability to accept a
digital signature issued by a licensed certification authority
under chapter 19.34 RCW or a certification authority under
the rules adopted by the Washington state board of registration for professional engineers and land surveyors, and can
import electronic files into an imaging system. The electronic
version shall be a standard raster file format acceptable to the
county.
(3) Two legible prints of each record of survey as
required under the provisions of this chapter shall be furnished to the county auditor in the county in which the survey
is to be recorded. The auditor, in those counties using imaging systems, may require only the original, and fewer prints,
as needed, to meet the requirements of their duties. If any of
58.09.050
(2004 Ed.)
Surveys—Recording
the prints submitted are not suitable for scanning or microfilming the auditor shall not record the original.
(4) Legibility requirements are set forth in the recorder's
checklist under RCW 58.09.110. [1999 c 39 § 1; 1973 c 50 §
5.]
58.09.110
(Signed) . . . . . . . . . . . . . . . . . . . . . .
County Auditor
[1973 c 50 § 8.]
58.09.090 When record of survey not required. (1) A
record of survey is not required of any survey:
(a) When it has been made by a public officer in his official capacity and a reproducible copy thereof has been filed
with the county engineer of the county in which the land is
located. A map so filed shall be indexed and kept available
for public inspection. A record of survey shall not be required
of a survey made by the United States bureau of land management. A state agency conducting surveys to carry out the
program of the agency shall not be required to use a land surveyor as defined by this chapter;
(b) When it is of a preliminary nature;
(c) When a map is in preparation for recording or shall
have been recorded in the county under any local subdivision
or platting law or ordinance;
(d) When it is a retracement or resurvey of boundaries of
platted lots, tracts, or parcels shown on a filed or recorded
and surveyed subdivision plat or filed or recorded and surveyed short subdivision plat in which monuments have been
set to mark all corners of the block or street centerline intersections, provided that no discrepancy is found as compared
to said recorded information or information revealed on other
subsequent public survey map records, such as a record of
survey or city or county engineer's map. If a discrepancy is
found, that discrepancy must be clearly shown on the face of
the required new record of survey. For purposes of this
exemption, the term discrepancy shall include:
(i) A nonexisting or displaced original or replacement
monument from which the parcel is defined and which nonexistence or displacement has not been previously revealed in
the public record;
(ii) A departure from proportionate measure solutions
which has not been revealed in the public record;
(iii) The presence of any physical evidence of encroachment or overlap by occupation or improvement; or
(iv) Differences in linear and/or angular measurement
between all controlling monuments that would indicate differences in spatial relationship between said controlling monuments in excess of 0.50 feet when compared with all locations of public record: That is, if these measurements agree
with any previously existing public record plat or map within
the stated tolerance, a discrepancy will not be deemed to exist
under this subsection.
(2) Surveys exempted by foregoing subsections of this
section shall require filing of a record of corner information
pursuant to RCW 58.09.040(2). [1992 c 106 § 1; 1973 c 50 §
9.]
58.09.090
58.09.060 Records of survey, contents—Record of
corner, information. (1) The record of survey as required
by RCW 58.09.040(1) shall show:
(a) All monuments found, set, reset, replaced, or
removed, describing their kind, size, and location and giving
other data relating thereto;
(b) Bearing trees, corner accessories or witness monuments, basis of bearings, bearing and length of lines, scale of
map, and north arrow;
(c) Name and legal description of tract in which the survey is located and ties to adjoining surveys of record;
(d) Certificates required by RCW 58.09.080;
(e) Any other data necessary for the intelligent interpretation of the various items and locations of the points, lines
and areas shown.
(2) The record of corner information as required by
RCW 58.09.040(2) shall be on a standard form showing:
(a) An accurate description and location, in reference to
the corner position, of all monuments and accessories found
at the corner;
(b) An accurate description and location, in reference to
the corner position, of all monuments and accessories placed
or replaced at the corner;
(c) Basis of bearings used to describe or locate such
monuments or accessories;
(d) Corollary information that may be helpful to relocate
or identify the corner position;
(e) Certificate required by RCW 58.09.080. [1973 c 50
§ 6.]
58.09.060
58.09.070 Coordinates—Map showing control
scheme required. When coordinates in the Washington
coordinate system are shown for points on a record of survey
map, the map may not be recorded unless it also shows, or is
accompanied by a map showing, the control scheme through
which the coordinates were determined from points of known
coordinates. [1973 c 50 § 7.]
58.09.070
58.09.080 Certificates—Required—Forms. Certificates shall appear on the record of survey map as follows:
58.09.080
SURVEYOR'S CERTIFICATE
This map correctly represents a survey made by me or
under my direction in conformance with the requirements of
the Survey Recording Act at the request of . . . . . . . . . in
. . . . . ., 19. . .
Name of Person
(Signed and Sealed) . . . . . . . . . . . . . . . . . . .
Certificate No. . . . . . . . . . . . . . . . . . . . . . . .
58.09.100 Filing fee. The charge for filing any record
of survey and/or record of corner information shall be fixed
by the board of county commissioners. [1973 c 50 § 10.]
58.09.100
AUDITOR'S CERTIFICATE
58.09.110 Duties of county auditor. The auditor shall
accept for recording those records of survey and records of
corner information that are in compliance with the recorder's
checklist as jointly developed by a committee consisting of
58.09.110
Filed for record this . . . . day of . . . . . ., 19. . . at
. . . . .M. in book . . . . of . . . . at page . . . . at the request of
.........
(2004 Ed.)
[Title 58 RCW—page 5]
58.09.120
Title 58 RCW: Boundaries and Plats
the survey advisory board and two representatives from the
Washington state association of county auditors. This checklist shall be adopted in rules by the department of natural
resources.
(1) The auditor shall keep proper indexes of such record
of survey by the name of owner and by quarter-quarter section, township, and range, with reference to other legal subdivisions.
(2) The auditor shall keep proper indexes of the record of
corner information by section, township, and range.
(3) After entering the recording data on the record of survey and all prints received from the surveyor, the auditor
shall send one of the surveyor's prints to the department of
natural resources in Olympia, Washington, for incorporation
into the statewide survey records repository. However, the
county and the department of natural resources may mutually
agree to process the original or an electronic version of the
original in lieu of the surveyor's print.
(4) After entering the recording data on the record of corner information the auditor shall send a legible copy, suitable
for scanning, to the department of natural resources in Olympia, Washington. However, the county and the department of
natural resources may mutually agree to process the original
or an electronic version of the original in lieu of the copy.
(5) The auditor shall permanently keep the original document filed using storage and handling processes that do not
cause excessive deterioration of the document. A county may
be excepted from the requirement to permanently store the
original document if it has a document scanning, filming, or
other process that creates a permanent, archival record that
meets or surpasses the standards as adopted in rule by the
division of archives and records management in chapter 434663 or 434-677 WAC. The auditor must be able to provide
full-size copies upon request. The auditor shall maintain a
copy or image of the original for public reference.
(6) If the county has the capability to accept a digital signature issued by a licensed certification authority under chapter 19.34 RCW or a certification authority under the rules
adopted by the Washington state board of registration for
professional engineers and land surveyors, and can import
electronic files into an imaging system, the auditor may
accept for recording electronic versions of the documents
required by this chapter. The electronic version shall be a
standard raster file format acceptable to the county.
(7) This section does not supersede other existing recording statutes. [1999 c 39 § 2; 1973 c 50 § 11.]
58.09.120
58.09.120 Monuments—Requirements. Any monument set by a land surveyor to mark or reference a point on a
property or land line shall be permanently marked or tagged
with the certificate number of the land surveyor setting it. If
the monument is set by a public officer it shall be marked by
an appropriate official designation.
Monuments set by a land surveyor shall be sufficient in
number and durability and shall be efficiently placed so as
not to be readily disturbed in order to assure, together with
monuments already existing, the perpetuation or reestablishment of any point or line of a survey. [1973 c 50 § 12.]
[Title 58 RCW—page 6]
58.09.130
58.09.130 Monuments disturbed by construction
activities—Procedure—Requirements. When adequate
records exist as to the location of subdivision, tract, street, or
highway monuments, such monuments shall be located and
referenced by or under the direction of a land surveyor at the
time when streets or highways are reconstructed or relocated,
or when other construction or activity affects their perpetuation. Whenever practical a suitable monument shall be reset
in the surface of the new construction. In all other cases permanent witness monuments shall be set to perpetuate the
location of preexisting monuments. Additionally, sufficient
controlling monuments shall be retained or replaced in their
original positions to enable land lines, property corners, elevations and tract boundaries to be reestablished without
requiring surveys originating from monuments other than the
ones disturbed by the current construction or activity.
It shall be the responsibility of the governmental agency
or others performing construction work or other activity to
provide for the monumentation required by this section. It
shall be the duty of every land surveyor to cooperate with
such governmental agency or other person in matters of
maps, field notes, and other pertinent records. Monuments set
to mark the limiting lines of highways, roads, or streets shall
not be deemed adequate for this purpose unless specifically
noted on the records of the improvement works with direct
ties in bearing or azimuth and distance between those and
other monuments of record. [1973 c 50 § 13.]
58.09.140
58.09.140 Noncompliance grounds for revocation of
land surveyor's license. Noncompliance with any provision
of this chapter, as it now exists or may hereafter be amended,
shall constitute grounds for revocation of a land surveyor's
authorization to practice the profession of land surveying and
as further set forth under RCW 18.43.105 and 18.43.110.
[1973 c 50 § 14.]
58.09.900
58.09.900 Severability—1973 c 50. If any provision of
this act, or its application to any person or circumstance is
held invalid, the remainder of the act, or the application of the
provision to other persons or circumstances is not affected.
[1973 c 50 § 15.]
Chapter 58.10
Chapter 58.10 RCW
DEFECTIVE PLATS LEGALIZED
Sections
58.10.010
58.10.020
58.10.030
58.10.040
Defective plats legalized—1881 Code.
Certified copy of plat as evidence.
Resurvey and corrected plat—Corrected plat as evidence.
Regulation of surveys and plats.
58.10.010
58.10.010 Defective plats legalized—1881 Code. All
city or town plats or any addition or additions thereto, heretofore made and recorded in the county auditor's office of any
county in Washington state, showing lots, blocks, streets,
alleys or public grounds, shall be conclusive evidence of the
location and size of the lots, blocks and public grounds and
the location and width of each and every street or alley
marked, laid down or appearing on such plat, and that all the
right, title, interest or estate which the person or persons making or recording such plat, or causing the same to be made, or
(2004 Ed.)
Plats—Subdivisions—Dedications
recorded, had at the time of making or recording such plat in
or to such streets, alleys or public grounds was thereby dedicated to public use, whether the same was made, executed or
acknowledged in accordance with the provisions of the laws
of this state in force at the time of making the same or not.
[Code 1881 § 2338; RRS § 9306. Formerly RCW 58.08.080.]
Chapter 58.17
Platted streets, public highways—Lack of compliance, penalty: RCW
58.08.035.
Chapter 58.17 RCW
PLATS—SUBDIVISIONS—DEDICATIONS
Chapter 58.17
Sections
58.10.020 Certified copy of plat as evidence. A copy
of any city or town plat or addition thereto recorded in the
manner provided for in RCW 58.10.010, certified by the
county auditor of the county in which the same is recorded to
be a true copy of such record and the whole thereof, shall be
received in evidence in all the courts of this state, with like
effect as the original. [Code 1881 § 2339; RRS § 9307. Formerly RCW 58.08.070.]
58.17.010
58.17.020
58.17.030
58.17.033
Rules of court: ER 803(a)(14).
58.17.065
58.17.070
58.10.020
Certified copies
of instruments, or transcripts of county commissioners' proceedings:
RCW 5.44.070.
of recorded instruments as evidence: RCW 5.44.060.
58.17.035
58.17.040
58.17.050
58.17.060
Copies of business and public records as evidence: RCW 5.46.010.
58.17.080
58.17.090
58.17.092
58.17.095
Instruments to be recorded or filed: RCW 65.04.030.
58.17.100
Photostatic or photographic copies of public or business records admissible
in evidence: RCW 40.20.030.
58.17.110
58.10.030
58.10.030 Resurvey and corrected plat—Corrected
plat as evidence. Whenever the recorded plat of any city or
addition thereto does not definitely show the location or size
of lots or blocks, or the location or width of any street or alley
in such city or addition, the city council of the city in which
the land so platted is located, is hereby authorized and
empowered by ordinance and the action of its proper officers,
to cause a new and correct survey and plat of such city or
addition to be made, and recorded in the office of the county
auditor of the county in which such city or addition is located,
which corrected plat shall follow the plan of the original survey and plat, so far as the same can be ascertained and followed, and a certificate of the officer or surveyor making the
same shall be endorsed thereon, referring to the original plat
corrected thereby, and the deficit existing therein, and corrected by such new survey and plat; and the ordinance authorizing the making of such plat shall be recorded in the office
of the county auditor of said county and said certificate shall
show where said ordinance is recorded, and such plat when
so made and recorded, or a copy thereof certified as provided
in RCW 58.10.020 shall be admissible in evidence in all the
courts in this state. [Code 1881 § 2340; RRS § 9308. Formerly RCW 58.12.130.]
58.10.040
58.10.040 Regulation of surveys and plats. All incorporated cities in the state of Washington are hereby authorized and empowered to regulate and prescribe the manner
and form of making any future survey or plat of lands within
their respective limits and enforce such regulations by a fine
of not exceeding one hundred dollars, to be recovered by and
in the name of such city, or imprisonment not exceeding
twenty days for each violation of any ordinance regulating
such survey and platting: PROVIDED, That nothing in this
chapter shall be construed so as to apply to additions to towns
in which no lots have been sold. [Code 1881 § 2341; RRS §
9309. Formerly RCW 58.12.140.]
(2004 Ed.)
58.17.120
58.17.130
58.17.140
58.17.150
58.17.155
58.17.160
58.17.165
58.17.170
58.17.180
58.17.190
58.17.195
58.17.200
58.17.205
58.17.210
58.17.212
58.17.215
58.17.217
58.17.218
58.17.220
58.17.225
58.17.230
58.17.240
58.17.250
58.17.255
58.17.260
58.17.275
58.17.280
58.17.290
58.17.300
Purpose.
Definitions.
Subdivisions to comply with chapter, local regulations.
Proposed division of land—Consideration of application for
preliminary plat or short plat approval—Requirements
defined by local ordinance.
Alternative method of land division—Binding site plans.
Chapter inapplicable, when.
Assessors plat—Compliance.
Short plats and short subdivisions—Summary approval—Regulations—Requirements.
Short plats and short subdivisions—Filing.
Preliminary plat of subdivisions and dedications—Submission
for approval—Procedure.
Filing of preliminary plat—Notice.
Notice of public hearing.
Public notice—Identification of affected property.
Ordinance may authorize administrative review of preliminary
plat without public hearing.
Review of preliminary plats by planning commission or
agency—Recommendation—Change by legislative body—
Procedure—Approval.
Approval or disapproval of subdivision and dedication—Factors to be considered—Conditions for approval—Finding—
Release from damages.
Disapproval due to flood, inundation or swamp conditions—
Improvements—Approval conditions.
Bond in lieu of actual construction of improvements prior to
approval of final plat—Bond or security to assure successful
operation of improvements.
Time limitation for approval or disapproval of plats—Extensions.
Recommendations of certain agencies to accompany plats submitted for final approval.
Short subdivision adjacent to state highway—Notice to department of transportation.
Requirements for each plat or replat filed for record.
Certificate giving description and statement of owners must
accompany final plat—Dedication, certificate requirements
if plat contains—Waiver.
Written approval of subdivision—Original of final plat to be
filed—Copies.
Review of decision.
Approval of plat required before filing—Procedure when
unapproved plat filed.
Approval of plat or short plat—Written finding of conformity
with applicable land use controls.
Injunctive action to restrain subdivision, sale, transfer of land
where final plat not filed.
Agreements to transfer land conditioned on final plat
approval—Authorized.
Building, septic tank or other development permits not to be
issued for land divided in violation of chapter or regulations—Exceptions—Damages—Rescission by purchaser.
Vacation of subdivision—Procedure.
Alteration of subdivision—Procedure.
Alteration or vacation of subdivision—Conduct of hearing.
Alteration of subdivision—Easements by dedication.
Violation of court order or injunction—Penalty.
Easement over public open space—May be exempt from
RCW 58.17.215—Hearing—Notice.
Assurance of discontinuance of violations.
Permanent control monuments.
Survey of subdivision and preparation of plat.
Survey discrepancy—Disclosure.
Joint committee—Members—Recommendations for surveys,
monumentation and plat drawings.
Proposals to adopt, amend, or repeal local ordinances—
Advance notice.
Naming and numbering of short subdivisions, subdivisions,
streets, lots and blocks.
Copy of plat as evidence.
Violations—Penalties.
[Title 58 RCW—page 7]
58.17.010
58.17.310
58.17.320
58.17.330
58.17.900
58.17.910
58.17.920
Title 58 RCW: Boundaries and Plats
Approval of plat within irrigation district without provision for
irrigation prohibited.
Compliance with chapter and local regulations—Enforcement.
Hearing examiner system—Adoption authorized—Procedures—Decisions.
Validation of existing ordinances and resolutions.
Severability—1969 ex.s. c 271.
Effective date and application of 1974 ex.s. c 134.
Fees for filing subdivision plats and short plats: RCW 58.24.070.
58.17.010
58.17.010 Purpose. The legislature finds that the process by which land is divided is a matter of state concern and
should be administered in a uniform manner by cities, towns,
and counties throughout the state. The purpose of this chapter
is to regulate the subdivision of land and to promote the public health, safety and general welfare in accordance with standards established by the state to prevent the overcrowding of
land; to lessen congestion in the streets and highways; to promote effective use of land; to promote safe and convenient
travel by the public on streets and highways; to provide for
adequate light and air; to facilitate adequate provision for
water, sewerage, parks and recreation areas, sites for schools
and schoolgrounds and other public requirements; to provide
for proper ingress and egress; to provide for the expeditious
review and approval of proposed subdivisions which conform to zoning standards and local plans and policies; to adequately provide for the housing and commercial needs of the
citizens of the state; and to require uniform monumenting of
land subdivisions and conveyancing by accurate legal
description. [1981 c 293 § 1; 1969 ex.s. c 271 § 1.]
Reviser's note: Throughout this chapter, the phrase "this act" has been
changed to "this chapter." "This act" [1969 ex.s. c 271] also consists of
amendments to RCW 58.08.040 and 58.24.040 and the repeal of RCW
58.16.010 through 58.16.110.
Severability—1981 c 293: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1981 c 293 § 16.]
58.17.020 Definitions. As used in this chapter, unless
the context or subject matter clearly requires otherwise, the
words or phrases defined in this section shall have the indicated meanings.
(1) "Subdivision" is the division or redivision of land
into five or more lots, tracts, parcels, sites, or divisions for the
purpose of sale, lease, or transfer of ownership, except as provided in subsection (6) of this section.
(2) "Plat" is a map or representation of a subdivision,
showing thereon the division of a tract or parcel of land into
lots, blocks, streets and alleys, or other divisions and dedications.
(3) "Dedication" is the deliberate appropriation of land
by an owner for any general and public uses, reserving to
himself or herself no other rights than such as are compatible
with the full exercise and enjoyment of the public uses to
which the property has been devoted. The intention to dedicate shall be evidenced by the owner by the presentment for
filing of a final plat or short plat showing the dedication
thereon; and, the acceptance by the public shall be evidenced
by the approval of such plat for filing by the appropriate governmental unit.
A dedication of an area of less than two acres for use as
a public park may include a designation of a name for the
park, in honor of a deceased individual of good character.
58.17.020
[Title 58 RCW—page 8]
(4) "Preliminary plat" is a neat and approximate drawing
of a proposed subdivision showing the general layout of
streets and alleys, lots, blocks, and other elements of a subdivision consistent with the requirements of this chapter. The
preliminary plat shall be the basis for the approval or disapproval of the general layout of a subdivision.
(5) "Final plat" is the final drawing of the subdivision
and dedication prepared for filing for record with the county
auditor and containing all elements and requirements set
forth in this chapter and in local regulations adopted under
this chapter.
(6) "Short subdivision" is the division or redivision of
land into four or fewer lots, tracts, parcels, sites, or divisions
for the purpose of sale, lease, or transfer of ownership. However, the legislative authority of any city or town may by
local ordinance increase the number of lots, tracts, or parcels
to be regulated as short subdivisions to a maximum of nine.
The legislative authority of any county planning under RCW
36.70A.040 that has adopted a comprehensive plan and
development regulations in compliance with chapter 36.70A
RCW may by ordinance increase the number of lots, tracts, or
parcels to be regulated as short subdivisions to a maximum of
nine in any urban growth area.
(7) "Binding site plan" means a drawing to a scale specified by local ordinance which: (a) Identifies and shows the
areas and locations of all streets, roads, improvements, utilities, open spaces, and any other matters specified by local
regulations; (b) contains inscriptions or attachments setting
forth such appropriate limitations and conditions for the use
of the land as are established by the local government body
having authority to approve the site plan; and (c) contains
provisions making any development be in conformity with
the site plan.
(8) "Short plat" is the map or representation of a short
subdivision.
(9) "Lot" is a fractional part of divided lands having
fixed boundaries, being of sufficient area and dimension to
meet minimum zoning requirements for width and area. The
term shall include tracts or parcels.
(10) "Block" is a group of lots, tracts, or parcels within
well defined and fixed boundaries.
(11) "County treasurer" shall be as defined in chapter
36.29 RCW or the office or person assigned such duties
under a county charter.
(12) "County auditor" shall be as defined in chapter
36.22 RCW or the office or person assigned such duties
under a county charter.
(13) "County road engineer" shall be as defined in chapter 36.40 RCW or the office or person assigned such duties
under a county charter.
(14) "Planning commission" means that body as defined
in chapter 36.70, 35.63, or 35A.63 RCW as designated by the
legislative body to perform a planning function or that body
assigned such duties and responsibilities under a city or
county charter.
(15) "County commissioner" shall be as defined in chapter 36.32 RCW or the body assigned such duties under a
county charter. [2002 c 262 § 1; 1995 c 32 § 2; 1983 c 121 §
1. Prior: 1981 c 293 § 2; 1981 c 292 § 1; 1969 ex.s. c 271 §
2.]
Severability—1981 c 293: See note following RCW 58.17.010.
(2004 Ed.)
Plats—Subdivisions—Dedications
Camping resort contracts—Nonapplicability of certain laws to—Resort not
subdivision except under city, county powers: RCW 19.105.510.
58.17.030
58.17.030 Subdivisions to comply with chapter, local
regulations. Every subdivision shall comply with the provisions of this chapter. Every short subdivision as defined in
this chapter shall comply with the provisions of any local regulation adopted pursuant to RCW 58.17.060. [1974 ex.s. c
134 § 1; 1969 ex.s. c 271 § 3.]
58.17.033
58.17.033 Proposed division of land—Consideration
of application for preliminary plat or short plat
approval—Requirements defined by local ordinance. (1)
A proposed division of land, as defined in RCW 58.17.020,
shall be considered under the subdivision or short subdivision
ordinance, and zoning or other land use control ordinances, in
effect on the land at the time a fully completed application for
preliminary plat approval of the subdivision, or short plat
approval of the short subdivision, has been submitted to the
appropriate county, city, or town official.
(2) The requirements for a fully completed application
shall be defined by local ordinance.
(3) The limitations imposed by this section shall not
restrict conditions imposed under chapter 43.21C RCW.
[1987 c 104 § 2.]
58.17.035
58.17.035 Alternative method of land division—
Binding site plans. A city, town, or county may adopt by
ordinance procedures for the divisions of land by use of a
binding site plan as an alternative to the procedures required
by this chapter. The ordinance shall be limited and only apply
to one or more of the following: (1) The use of a binding site
plan to divisions for sale or lease of commercially or industrially zoned property as provided in RCW 58.17.040(4); (2)
divisions of property for lease as provided for in RCW
58.17.040(5); and (3) divisions of property as provided for in
RCW 58.17.040(7). Such ordinance may apply the same or
different requirements and procedures to each of the three
types of divisions and shall provide for the alteration or vacation of the binding site plan, and may provide for the administrative approval of the binding site plan.
The ordinance shall provide that after approval of the
general binding site plan for industrial or commercial divisions subject to a binding site plan, the approval for improvements and finalization of specific individual commercial or
industrial lots shall be done by administrative approval.
The binding site plan, after approval, and/or when specific lots are administratively approved, shall be filed with
the county auditor with a record of survey. Lots, parcels, or
tracts created through the binding site plan procedure shall be
legal lots of record. The number of lots, tracts, parcels, sites,
or divisions shall not exceed the number of lots allowed by
the local zoning ordinances.
All provisions, conditions, and requirements of the binding site plan shall be legally enforceable on the purchaser or
any other person acquiring a lease or other ownership interest
of any lot, parcel, or tract created pursuant to the binding site
plan.
Any sale, transfer, or lease of any lot, tract, or parcel created pursuant to the binding site plan, that does not conform
to the requirements of the binding site plan or without bind(2004 Ed.)
58.17.040
ing site plan approval, shall be considered a violation of
chapter 58.17 RCW and shall be restrained by injunctive
action and be illegal as provided in chapter 58.17 RCW.
[1987 c 354 § 2.]
58.17.040 Chapter inapplicable, when. The provisions of this chapter shall not apply to:
(1) Cemeteries and other burial plots while used for that
purpose;
(2) Divisions of land into lots or tracts each of which is
one-one hundred twenty-eighth of a section of land or larger,
or five acres or larger if the land is not capable of description
as a fraction of a section of land, unless the governing authority of the city, town, or county in which the land is situated
shall have adopted a subdivision ordinance requiring plat
approval of such divisions: PROVIDED, That for purposes
of computing the size of any lot under this item which borders on a street or road, the lot size shall be expanded to
include that area which would be bounded by the center line
of the road or street and the side lot lines of the lot running
perpendicular to such center line;
(3) Divisions made by testamentary provisions, or the
laws of descent;
(4) Divisions of land into lots or tracts classified for
industrial or commercial use when the city, town, or county
has approved a binding site plan for the use of the land in
accordance with local regulations;
(5) A division for the purpose of lease when no residential structure other than mobile homes or travel trailers are
permitted to be placed upon the land when the city, town, or
county has approved a binding site plan for the use of the land
in accordance with local regulations;
(6) A division made for the purpose of alteration by
adjusting boundary lines, between platted or unplatted lots or
both, which does not create any additional lot, tract, parcel,
site, or division nor create any lot, tract, parcel, site, or division which contains insufficient area and dimension to meet
minimum requirements for width and area for a building site;
(7) Divisions of land into lots or tracts if: (a) Such division is the result of subjecting a portion of a parcel or tract of
land to either chapter 64.32 or 64.34 RCW subsequent to the
recording of a binding site plan for all such land; (b) the
improvements constructed or to be constructed thereon are
required by the provisions of the binding site plan to be
included in one or more condominiums or owned by an association or other legal entity in which the owners of units
therein or their owners' associations have a membership or
other legal or beneficial interest; (c) a city, town, or county
has approved the binding site plan for all such land; (d) such
approved binding site plan is recorded in the county or counties in which such land is located; and (e) the binding site plan
contains thereon the following statement: "All development
and use of the land described herein shall be in accordance
with this binding site plan, as it may be amended with the
approval of the city, town, or county having jurisdiction over
the development of such land, and in accordance with such
other governmental permits, approvals, regulations, requirements, and restrictions that may be imposed upon such land
and the development and use thereof. Upon completion, the
improvements on the land shall be included in one or more
condominiums or owned by an association or other legal
58.17.040
[Title 58 RCW—page 9]
58.17.050
Title 58 RCW: Boundaries and Plats
entity in which the owners of units therein or their owners'
associations have a membership or other legal or beneficial
interest. This binding site plan shall be binding upon all now
or hereafter having any interest in the land described herein."
The binding site plan may, but need not, depict or describe
the boundaries of the lots or tracts resulting from subjecting a
portion of the land to either chapter 64.32 or 64.34 RCW. A
site plan shall be deemed to have been approved if the site
plan was approved by a city, town, or county: (i) In connection with the final approval of a subdivision plat or planned
unit development with respect to all of such land; or (ii) in
connection with the issuance of building permits or final certificates of occupancy with respect to all of such land; or (iii)
if not approved pursuant to (i) and (ii) of this subsection
(7)(e), then pursuant to such other procedures as such city,
town, or county may have established for the approval of a
binding site plan;
(8) A division for the purpose of leasing land for facilities providing personal wireless services while used for that
purpose. "Personal wireless services" means any federally
licensed personal wireless service. "Facilities" means
unstaffed facilities that are used for the transmission or reception, or both, of wireless communication services including,
but not necessarily limited to, antenna arrays, transmission
cables, equipment shelters, and support structures; and
(9) A division of land into lots or tracts of less than three
acres that is recorded in accordance with chapter 58.09 RCW
and is used or to be used for the purpose of establishing a site
for construction and operation of consumer-owned or investor-owned electric utility facilities. For purposes of this subsection, "electric utility facilities" means unstaffed facilities,
except for the presence of security personnel, that are used
for or in connection with or to facilitate the transmission, distribution, sale, or furnishing of electricity including, but not
limited to, electric power substations. This subsection does
not exempt a division of land from the zoning and permitting
laws and regulations of cities, towns, counties, and municipal
corporations. Furthermore, this subsection only applies to
electric utility facilities that will be placed into service to
meet the electrical needs of a utility's existing and new customers. New customers are defined as electric service locations not already in existence as of the date that electric utility
facilities subject to the provisions of this subsection are
planned and constructed. [2004 c 239 § 1; 2002 c 44 § 1;
1992 c 220 § 27; 1989 c 43 § 4-123. Prior: 1987 c 354 § 1;
1987 c 108 § 1; 1983 c 121 § 2; prior: 1981 c 293 § 3; 1981
c 292 § 2; 1974 ex.s. c 134 § 2; 1969 ex.s. c 271 § 4.]
Severability—Effective date—1989 c 43: See RCW 64.34.920 and
64.34.930.
Severability—1981 c 293: See note following RCW 58.17.010.
58.17.050 Assessors plat—Compliance. An assessors
plat made in accordance with RCW 58.18.010 need not comply with any of the requirements of this chapter except RCW
58.17.240 and 58.17.250. [1969 ex.s. c 271 § 5.]
58.17.050
58.17.060 Short plats and short subdivisions—Summary approval—Regulations—Requirements. (1) The
legislative body of a city, town, or county shall adopt regulations and procedures, and appoint administrative personnel
for the summary approval of short plats and short subdivi58.17.060
[Title 58 RCW—page 10]
sions or alteration or vacation thereof. When an alteration or
vacation involves a public dedication, the alteration or vacation shall be processed as provided in RCW 58.17.212 or
58.17.215. Such regulations shall be adopted by ordinance
and shall provide that a short plat and short subdivision may
be approved only if written findings that are appropriate, as
provided in RCW 58.17.110, are made by the administrative
personnel, and may contain wholly different requirements
than those governing the approval of preliminary and final
plats of subdivisions and may require surveys and monumentations and shall require filing of a short plat, or alteration or
vacation thereof, for record in the office of the county auditor: PROVIDED, That such regulations must contain a
requirement that land in short subdivisions may not be further
divided in any manner within a period of five years without
the filing of a final plat, except that when the short plat contains fewer than four parcels, nothing in this section shall prevent the owner who filed the short plat from filing an alteration within the five-year period to create up to a total of four
lots within the original short plat boundaries: PROVIDED
FURTHER, That such regulations are not required to contain
a penalty clause as provided in RCW 36.32.120 and may provide for wholly injunctive relief.
An ordinance requiring a survey shall require that the
survey be completed and filed with the application for
approval of the short subdivision.
(2) Cities, towns, and counties shall include in their short
plat regulations and procedures pursuant to subsection (1) of
this section provisions for considering sidewalks and other
planning features that assure safe walking conditions for students who walk to and from school. [1990 1st ex.s. c 17 § 51;
1989 c 330 § 2; 1987 c 354 § 5; 1987 c 92 § 1; 1974 ex.s. c
134 § 3; 1969 ex.s. c 271 § 6.]
Severability—Part, section headings not law—1990 1st ex.s. c 17:
See RCW 36.70A.900 and 36.70A.901.
58.17.065
58.17.065 Short plats and short subdivisions—Filing.
Each short plat and short subdivision granted pursuant to
local regulations after July 1, 1974, shall be filed with the
county auditor and shall not be deemed "approved" until so
filed. [1974 ex.s. c 134 § 12.]
58.17.070
58.17.070 Preliminary plat of subdivisions and dedications—Submission for approval—Procedure. A preliminary plat of proposed subdivisions and dedications of
land shall be submitted for approval to the legislative body of
the city, town, or county within which the plat is situated.
Unless an applicant for preliminary plat approval
requests otherwise, a preliminary plat shall be processed
simultaneously with applications for rezones, variances,
planned unit developments, site plan approvals, and similar
quasi-judicial or administrative actions to the extent that procedural requirements applicable to these actions permit
simultaneous processing. [1981 c 293 § 4; 1969 ex.s. c 271 §
7.]
Severability—1981 c 293: See note following RCW 58.17.010.
58.17.080
58.17.080 Filing of preliminary plat—Notice. Notice
of the filing of a preliminary plat of a proposed subdivision
adjacent to or within one mile of the municipal boundaries of
(2004 Ed.)
Plats—Subdivisions—Dedications
a city or town, or which contemplates the use of any city or
town utilities shall be given to the appropriate city or town
authorities. Any notice required by this chapter shall include
the hour and location of the hearing and a description of the
property to be platted. Notice of the filing of a preliminary
plat of a proposed subdivision located in a city or town and
adjoining the municipal boundaries thereof shall be given to
appropriate county officials. Notice of the filing of a preliminary plat of a proposed subdivision located adjacent to the
right-of-way of a state highway or within two miles of the
boundary of a state or municipal airport shall be given to the
secretary of transportation. In the case of notification to the
secretary of transportation, the secretary shall respond to the
notifying authority within fifteen days of such notice as to the
effect that the proposed subdivision will have on the state
highway or the state or municipal airport. [1982 c 23 § 1;
1969 ex.s. c 271 § 8.]
58.17.090
58.17.090 Notice of public hearing. (1) Upon receipt
of an application for preliminary plat approval the administrative officer charged by ordinance with responsibility for
administration of regulations pertaining to platting and subdivisions shall provide public notice and set a date for a public
hearing. Except as provided in RCW 36.70B.110, at a minimum, notice of the hearing shall be given in the following
manner:
(a) Notice shall be published not less than ten days prior
to the hearing in a newspaper of general circulation within the
county and a newspaper of general circulation in the area
where the real property which is proposed to be subdivided is
located; and
(b) Special notice of the hearing shall be given to adjacent landowners by any other reasonable method local
authorities deem necessary. Adjacent landowners are the
owners of real property, as shown by the records of the
county assessor, located within three hundred feet of any portion of the boundary of the proposed subdivision. If the
owner of the real property which is proposed to be subdivided
owns another parcel or parcels of real property which lie
adjacent to the real property proposed to be subdivided,
notice under this subsection (1)(b) shall be given to owners of
real property located within three hundred feet of any portion
of the boundaries of such adjacently located parcels of real
property owned by the owner of the real property proposed to
be subdivided.
(2) All hearings shall be public. All hearing notices shall
include a description of the location of the proposed subdivision. The description may be in the form of either a vicinity
location sketch or a written description other than a legal
description. [1995 c 347 § 426; 1981 c 293 § 5; 1974 ex.s. c
134 § 4; 1969 ex.s. c 271 § 9.]
Finding—Severability—Part headings and table of contents not
law—1995 c 347: See notes following RCW 36.70A.470.
Severability—1981 c 293: See note following RCW 58.17.010.
58.17.092
58.17.092 Public notice—Identification of affected
property. Any notice made under chapter 58.17 or 36.70B
RCW that identifies affected property may identify this
affected property without using a legal description of the
property including, but not limited to, identification by an
(2004 Ed.)
58.17.095
address, written description, vicinity sketch, or other reasonable means. [1995 c 347 § 427; 1988 c 168 § 12.]
Finding—Severability—Part headings and table of contents not
law—1995 c 347: See notes following RCW 36.70A.470.
58.17.095
58.17.095 Ordinance may authorize administrative
review of preliminary plat without public hearing. A
county, city, or town may adopt an ordinance providing for
the administrative review of a preliminary plat without a public hearing by adopting an ordinance providing for such
administrative review. The ordinance may specify a threshold number of lots in a subdivision above which a public
hearing must be held, and may specify other factors which
necessitate the holding of a public hearing. The administrative review process shall include the following minimum
conditions:
(1) The notice requirements of RCW 58.17.090 shall be
followed, except that the publication shall be made within ten
days of the filing of the application. Additionally, at least ten
days after the filing of the application notice both shall be:
(a) Posted on or around the land proposed to be subdivided in
at least five conspicuous places designed to attract public
awareness of the proposal; and (b) mailed to the owner of
each lot or parcel of property located within at least three
hundred feet of the site. The applicant shall provide the
county, city, or town with a list of such property owners and
their addresses. The notice shall include notification that no
public hearing will be held on the application, except as provided by this section. The notice shall set out the procedures
and time limitations for persons to require a public hearing
and make comments.
(2) Any person shall have a period of twenty days from
the date of the notice to comment upon the proposed preliminary plat. All comments received shall be provided to the
applicant. The applicant has seven days from receipt of the
comments to respond thereto.
(3) A public hearing on the proposed subdivision shall be
held if any person files a request for a hearing with the
county, city, or town within twenty-one days of the publishing of such notice. If such a hearing is requested, notice
requirements for the public hearing shall be in conformance
with RCW 58.17.090, and the ninety-day period for approval
or disapproval of the proposed subdivision provided for in
RCW 58.17.140 shall commence with the date of the filing of
the request for a public hearing. Any hearing ordered under
this subsection shall be conducted by the planning commission or hearings officer as required by county or city ordinance.
(4) On its own initiative within twenty-one days of the
filing of the request for approval of the subdivision, the governing body, or a designated employee or official, of the
county, city, or town, shall be authorized to cause a public
hearing to be held on the proposed subdivision within ninety
days of the filing of the request for the subdivision.
(5) If the public hearing is waived as provided in this section, the planning commission or planning agency shall complete the review of the proposed preliminary plat and transmit
its recommendation to the legislative body as provided in
RCW 58.17.100. [1986 c 233 § 1.]
Applicability—1986 c 233: "This act does not affect the provisions of
RCW 82.02.020." [1986 c 233 § 3.]
[Title 58 RCW—page 11]
58.17.100
Title 58 RCW: Boundaries and Plats
58.17.100
58.17.100 Review of preliminary plats by planning
commission or agency—Recommendation—Change by
legislative body—Procedure—Approval. If a city, town or
county has established a planning commission or planning
agency in accordance with state law or local charter, such
commission or agency shall review all preliminary plats and
make recommendations thereon to the city, town or county
legislative body to assure conformance of the proposed subdivision to the general purposes of the comprehensive plan
and to planning standards and specifications as adopted by
the city, town or county. Reports of the planning commission
or agency shall be advisory only: PROVIDED, That the legislative body of the city, town or county may, by ordinance,
assign to such commission or agency, or any department official or group of officials, such administrative functions, powers and duties as may be appropriate, including the holding of
hearings, and recommendations for approval or disapproval
of preliminary plats of proposed subdivisions.
Such recommendation shall be submitted to the legislative body not later than fourteen days following action by the
hearing body. Upon receipt of the recommendation on any
preliminary plat the legislative body shall at its next public
meeting set the date for the public meeting where it shall consider the recommendations of the hearing body and may
adopt or reject the recommendations of such hearing body
based on the record established at the public hearing. If, after
considering the matter at a public meeting, the legislative
body deems a change in the planning commission's or planning agency's recommendation approving or disapproving
any preliminary plat is necessary, the legislative body shall
adopt its own recommendations and approve or disapprove
the preliminary plat.
Every decision or recommendation made under this section shall be in writing and shall include findings of fact and
conclusions to support the decision or recommendation.
A record of all public meetings and public hearings shall
be kept by the appropriate city, town or county authority and
shall be open to public inspection.
Sole authority to approve final plats, and to adopt or
amend platting ordinances shall reside in the legislative bodies. [1995 c 347 § 428; 1981 c 293 § 6; 1969 ex.s. c 271 §
10.]
Finding—Severability—Part headings and table of contents not
law—1995 c 347: See notes following RCW 36.70A.470.
Severability—1981 c 293: See note following RCW 58.17.010.
58.17.110
58.17.110 Approval or disapproval of subdivision
and dedication—Factors to be considered—Conditions
for approval—Finding—Release from damages. (1) The
city, town, or county legislative body shall inquire into the
public use and interest proposed to be served by the establishment of the subdivision and dedication. It shall determine:
(a) If appropriate provisions are made for, but not limited to,
the public health, safety, and general welfare, for open
spaces, drainage ways, streets or roads, alleys, other public
ways, transit stops, potable water supplies, sanitary wastes,
parks and recreation, playgrounds, schools and schoolgrounds, and shall consider all other relevant facts, including
sidewalks and other planning features that assure safe walking conditions for students who only walk to and from
[Title 58 RCW—page 12]
school; and (b) whether the public interest will be served by
the subdivision and dedication.
(2) A proposed subdivision and dedication shall not be
approved unless the city, town, or county legislative body
makes written findings that: (a) Appropriate provisions are
made for the public health, safety, and general welfare and
for such open spaces, drainage ways, streets or roads, alleys,
other public ways, transit stops, potable water supplies, sanitary wastes, parks and recreation, playgrounds, schools and
schoolgrounds and all other relevant facts, including sidewalks and other planning features that assure safe walking
conditions for students who only walk to and from school;
and (b) the public use and interest will be served by the platting of such subdivision and dedication. If it finds that the
proposed subdivision and dedication make such appropriate
provisions and that the public use and interest will be served,
then the legislative body shall approve the proposed subdivision and dedication. Dedication of land to any public body,
provision of public improvements to serve the subdivision,
and/or impact fees imposed under RCW 82.02.050 through
82.02.090 may be required as a condition of subdivision
approval. Dedications shall be clearly shown on the final plat.
No dedication, provision of public improvements, or impact
fees imposed under RCW 82.02.050 through 82.02.090 shall
be allowed that constitutes an unconstitutional taking of private property. The legislative body shall not as a condition to
the approval of any subdivision require a release from damages to be procured from other property owners.
(3) If the preliminary plat includes a dedication of a public park with an area of less than two acres and the donor has
designated that the park be named in honor of a deceased
individual of good character, the city, town, or county legislative body must adopt the designated name. [1995 c 32 § 3;
1990 1st ex.s. c 17 § 52; 1989 c 330 § 3; 1974 ex.s. c 134 § 5;
1969 ex.s. c 271 § 11.]
Severability—Part, section headings not law—1990 1st ex.s. c 17:
See RCW 36.70A.900 and 36.70A.901.
58.17.120
58.17.120 Disapproval due to flood, inundation or
swamp conditions—Improvements—Approval conditions. The city, town, or county legislative body shall consider the physical characteristics of a proposed subdivision
site and may disapprove a proposed plat because of flood,
inundation, or swamp conditions. Construction of protective
improvements may be required as a condition of approval,
and such improvements shall be noted on the final plat.
No plat shall be approved by any city, town, or county
legislative authority covering any land situated in a flood
control zone as provided in chapter 86.16 RCW without the
prior written approval of the department of ecology of the
state of Washington. [1974 ex.s. c 134 § 6; 1969 ex.s. c 271
§ 12.]
58.17.130
58.17.130 Bond in lieu of actual construction of
improvements prior to approval of final plat—Bond or
security to assure successful operation of improvements.
Local regulations shall provide that in lieu of the completion
of the actual construction of any required improvements prior
to the approval of a final plat, the city, town, or county legislative body may accept a bond, in an amount and with surety
and conditions satisfactory to it, or other secure method, pro(2004 Ed.)
Plats—Subdivisions—Dedications
viding for and securing to the municipality the actual construction and installation of such improvements within a
period specified by the city, town, or county legislative body
and expressed in the bonds. In addition, local regulations may
provide for methods of security, including the posting of a
bond securing to the municipality the successful operation of
improvements for an appropriate period of time up to two
years after final approval. The municipality is hereby granted
the power to enforce bonds authorized under this section by
all appropriate legal and equitable remedies. Such local regulations may provide that the improvements such as structures,
sewers, and water systems shall be designed and certified by
or under the supervision of a registered civil engineer prior to
the acceptance of such improvements. [1974 ex.s. c 134 § 7;
1969 ex.s. c 271 § 13.]
58.17.140
58.17.140 Time limitation for approval or disapproval of plats—Extensions. Preliminary plats of any proposed subdivision and dedication shall be approved, disapproved, or returned to the applicant for modification or correction within ninety days from date of filing thereof unless
the applicant consents to an extension of such time period or
the ninety day limitation is extended to include up to twentyone days as specified under RCW 58.17.095(3): PROVIDED, That if an environmental impact statement is
required as provided in RCW 43.21C.030, the ninety day
period shall not include the time spent preparing and circulating the environmental impact statement by the local government agency. Final plats and short plats shall be approved,
disapproved, or returned to the applicant within thirty days
from the date of filing thereof, unless the applicant consents
to an extension of such time period. A final plat meeting all
requirements of this chapter shall be submitted to the legislative body of the city, town, or county for approval within five
years of the date of preliminary plat approval. Nothing contained in this section shall act to prevent any city, town, or
county from adopting by ordinance procedures which would
allow extensions of time that may or may not contain additional or altered conditions and requirements. [1995 c 68 § 1;
1986 c 233 § 2; 1983 c 121 § 3; 1981 c 293 § 7; 1974 ex.s. c
134 § 8; 1969 ex.s. c 271 § 14.]
Applicability—1986 c 233: See note following RCW 58.17.095.
Severability—1981 c 293: See note following RCW 58.17.010.
58.17.150
58.17.150 Recommendations of certain agencies to
accompany plats submitted for final approval. Each preliminary plat submitted for final approval of the legislative
body shall be accompanied by the following agencies' recommendations for approval or disapproval:
(1) Local health department or other agency furnishing
sewage disposal and supplying water as to the adequacy of
the proposed means of sewage disposal and water supply;
(2) Local planning agency or commission, charged with
the responsibility of reviewing plats and subdivisions, as to
compliance with all terms of the preliminary approval of the
proposed plat subdivision or dedication;
(3) City, town or county engineer.
Except as provided in RCW 58.17.140, an agency or person issuing a recommendation for subsequent approval under
subsections (1) and (3) of this section shall not modify the
(2004 Ed.)
58.17.165
terms of its recommendations without the consent of the
applicant. [1983 c 121 § 4; 1981 c 293 § 8; 1969 ex.s. c 271
§ 15.]
Severability—1981 c 293: See note following RCW 58.17.010.
58.17.155
58.17.155 Short subdivision adjacent to state highway—Notice to department of transportation. Whenever
a city, town, or county receives an application for the
approval of a short plat of a short subdivision that is located
adjacent to the right of way of a state highway, the responsible administrator shall give written notice of the application,
including a legal description of the short subdivision and a
location map, to the department of transportation. The department shall, within fourteen days after receiving the notice,
submit to the responsible administrator who furnished the
notice a statement with any information that the department
deems to be relevant about the effect of the proposed short
subdivision upon the legal access to the state highway, the
traffic carrying capacity of the state highway and the safety of
the users of the state highway. [1984 c 47 § 1.]
58.17.160
58.17.160 Requirements for each plat or replat filed
for record. Each and every plat, or replat, of any property
filed for record shall:
(1) Contain a statement of approval from the city, town
or county licensed road engineer or by a licensed engineer
acting on behalf of the city, town or county as to the layout of
streets, alleys and other rights of way, design of bridges, sewage and water systems, and other structures;
(2) Be accompanied by a complete survey of the section
or sections in which the plat or replat is located made to surveying standards adopted by the division of engineering services of the department of natural resources pursuant to RCW
58.24.040.
(3) Be acknowledged by the person filing the plat before
the auditor of the county in which the land is located, or any
other officer who is authorized by law to take acknowledgment of deeds, and a certificate of said acknowledgment shall
be enclosed or annexed to such plat and recorded therewith.
(4) Contain a certification from the proper officer or
officers in charge of tax collections that all taxes and delinquent assessments for which the property may be liable as of
the date of certification have been duly paid, satisfied or discharged.
No engineer who is connected in any way with the subdividing and platting of the land for which subdivision
approval is sought, shall examine and approve such plats on
behalf of any city, town or county. [1985 c 99 § 1; 1969 ex.s.
c 271 § 16.]
58.17.165
58.17.165 Certificate giving description and statement of owners must accompany final plat—Dedication,
certificate requirements if plat contains—Waiver. Every
final plat or short plat of a subdivision or short subdivision
filed for record must contain a certificate giving a full and
correct description of the lands divided as they appear on the
plat or short plat, including a statement that the subdivision or
short subdivision has been made with the free consent and in
accordance with the desires of the owner or owners.
[Title 58 RCW—page 13]
58.17.170
Title 58 RCW: Boundaries and Plats
If the plat or short plat is subject to a dedication, the certificate or a separate written instrument shall contain the dedication of all streets and other areas to the public, and individual or individuals, religious society or societies or to any corporation, public or private as shown on the plat or short plat
and a waiver of all claims for damages against any governmental authority which may be occasioned to the adjacent
land by the established construction, drainage and maintenance of said road. Said certificate or instrument of dedication shall be signed and acknowledged before a notary public
by all parties having any ownership interest in the lands subdivided and recorded as part of the final plat.
Every plat and short plat containing a dedication filed for
record must be accompanied by a title report confirming that
the title of the lands as described and shown on said plat is in
the name of the owners signing the certificate or instrument
of dedication.
An offer of dedication may include a waiver of right of
direct access to any street from any property, and if the dedication is accepted, any such waiver is effective. Such waiver
may be required by local authorities as a condition of
approval. Roads not dedicated to the public must be clearly
marked on the face of the plat. Any dedication, donation or
grant as shown on the face of the plat shall be considered to
all intents and purposes, as a quitclaim deed to the said donee
or donees, grantee or grantees for his, her or their use for the
purpose intended by the donors or grantors as aforesaid.
[1981 c 293 § 9; 1969 ex.s. c 271 § 30.]
Severability—1981 c 293: See note following RCW 58.17.010.
58.17.170
58.17.170 Written approval of subdivision—Original
of final plat to be filed—Copies. When the legislative body
of the city, town or county finds that the subdivision proposed for final plat approval conforms to all terms of the preliminary plat approval, and that said subdivision meets the
requirements of this chapter, other applicable state laws, and
any local ordinances adopted under this chapter which were
in effect at the time of preliminary plat approval, it shall suitably inscribe and execute its written approval on the face of
the plat. The original of said final plat shall be filed for record
with the county auditor. One reproducible copy shall be furnished to the city, town or county engineer. One paper copy
shall be filed with the county assessor. Paper copies shall be
provided to such other agencies as may be required by ordinance. Any lots in a final plat filed for record shall be a valid
land use notwithstanding any change in zoning laws for a
period of five years from the date of filing. A subdivision
shall be governed by the terms of approval of the final plat,
and the statutes, ordinances, and regulations in effect at the
time of approval under RCW 58.17.150 (1) and (3) for a
period of five years after final plat approval unless the legislative body finds that a change in conditions creates a serious
threat to the public health or safety in the subdivision. [1981
c 293 § 10; 1969 ex.s. c 271 § 17.]
Severability—1981 c 293: See note following RCW 58.17.010.
58.17.180
58.17.180 Review of decision. Any decision approving
or disapproving any plat shall be reviewable under chapter
36.70C RCW. [1995 c 347 § 717; 1983 c 121 § 5; 1969 ex.s.
c 271 § 18.]
[Title 58 RCW—page 14]
Finding—Severability—Part headings and table of contents not
law—1995 c 347: See notes following RCW 36.70A.470.
58.17.190
58.17.190 Approval of plat required before filing—
Procedure when unapproved plat filed. The county auditor shall refuse to accept any plat for filing until approval of
the plat has been given by the appropriate legislative body.
Should a plat or dedication be filed without such approval,
the prosecuting attorney of the county in which the plat is
filed shall apply for a writ of mandate in the name of and on
behalf of the legislative body required to approve same,
directing the auditor and assessor to remove from their files
or records the unapproved plat, or dedication of record.
[1969 ex.s. c 271 § 19.]
58.17.195
58.17.195 Approval of plat or short plat—Written
finding of conformity with applicable land use controls.
No plat or short plat may be approved unless the city, town,
or county makes a formal written finding of fact that the proposed subdivision or proposed short subdivision is in conformity with any applicable zoning ordinance or other land use
controls which may exist. [1981 c 293 § 14.]
Severability—1981 c 293: See note following RCW 58.17.010.
58.17.200
58.17.200 Injunctive action to restrain subdivision,
sale, transfer of land where final plat not filed. Whenever
any parcel of land is divided into five or more lots, tracts, or
parcels of land and any person, firm or corporation or any
agent of any of them sells or transfers, or offers or advertises
for sale or transfer, any such lot, tract, or parcel without having a final plat of such subdivision filed for record, the prosecuting attorney shall commence an action to restrain and
enjoin further subdivisions or sales, or transfers, or offers of
sale or transfer and compel compliance with all provisions of
this chapter. The costs of such action shall be taxed against
the person, firm, corporation or agent selling or transferring
the property. [1969 ex.s. c 271 § 20.]
58.17.205
58.17.205 Agreements to transfer land conditioned
on final plat approval—Authorized. If performance of an
offer or agreement to sell, lease, or otherwise transfer a lot,
tract, or parcel of land following preliminary plat approval is
expressly conditioned on the recording of the final plat containing the lot, tract, or parcel under this chapter, the offer or
agreement is not subject to RCW 58.17.200 or 58.17.300 and
does not violate any provision of this chapter. All payments
on account of an offer or agreement conditioned as provided
in this section shall be deposited in an escrow or other regulated trust account and no disbursement to sellers shall be
permitted until the final plat is recorded. [1981 c 293 § 12.]
Severability—1981 c 293: See note following RCW 58.17.010.
58.17.210
58.17.210 Building, septic tank or other development
permits not to be issued for land divided in violation of
chapter or regulations—Exceptions—Damages—Rescission by purchaser. No building permit, septic tank permit,
or other development permit, shall be issued for any lot, tract,
or parcel of land divided in violation of this chapter or local
regulations adopted pursuant thereto unless the authority
authorized to issue such permit finds that the public interest
(2004 Ed.)
Plats—Subdivisions—Dedications
will not be adversely affected thereby. The prohibition contained in this section shall not apply to an innocent purchaser
for value without actual notice. All purchasers' or transferees'
property shall comply with provisions of this chapter and
each purchaser or transferee may recover his damages from
any person, firm, corporation, or agent selling or transferring
land in violation of this chapter or local regulations adopted
pursuant thereto, including any amount reasonably spent as a
result of inability to obtain any development permit and spent
to conform to the requirements of this chapter as well as cost
of investigation, suit, and reasonable attorneys' fees occasioned thereby. Such purchaser or transferee may as an alternative to conforming his property to these requirements,
rescind the sale or transfer and recover costs of investigation,
suit, and reasonable attorneys' fees occasioned thereby.
[1974 ex.s. c 134 § 10; 1969 ex.s. c 271 § 21.]
58.17.212
58.17.212 Vacation of subdivision—Procedure.
Whenever any person is interested in the vacation of any subdivision or portion thereof, or any area designated or dedicated for public use, that person shall file an application for
vacation with the legislative authority of the city, town, or
county in which the subdivision is located. The application
shall set forth the reasons for vacation and shall contain signatures of all parties having an ownership interest in that portion of the subdivision subject to vacation. If the subdivision
is subject to restrictive covenants which were filed at the time
of the approval of the subdivision, and the application for
vacation would result in the violation of a covenant, the
application shall contain an agreement signed by all parties
subject to the covenants providing that the parties agree to
terminate or alter the relevant covenants to accomplish the
purpose of the vacation of the subdivision or portion thereof.
When the vacation application is specifically for a
county road or city or town street, the procedures for road
vacation or street vacation in chapter 36.87 or 35.79 RCW
shall be utilized for the road or street vacation. When the
application is for the vacation of the plat together with the
roads and/or streets, the procedure for vacation in this section
shall be used, but vacations of streets may not be made that
are prohibited under *RCW 35.79.030, and vacations of
roads may not be made that are prohibited under RCW
36.87.130.
The legislative authority of the city, town, or county
shall give notice as provided in RCW 58.17.080 and
58.17.090 and shall conduct a public hearing on the application for a vacation and may approve or deny the application
for vacation of the subdivision after determining the public
use and interest to be served by the vacation of the subdivision. If any portion of the land contained in the subdivision
was dedicated to the public for public use or benefit, such
land, if not deeded to the city, town, or county, shall be
deeded to the city, town, or county unless the legislative
authority shall set forth findings that the public use would not
be served in retaining title to those lands.
Title to the vacated property shall vest with the rightful
owner as shown in the county records. If the vacated land is
land that was dedicated to the public, for public use other than
a road or street, and the legislative authority has found that
retaining title to the land is not in the public interest, title
thereto shall vest with the person or persons owning the prop(2004 Ed.)
58.17.217
erty on each side thereof, as determined by the legislative
authority. When the road or street that is to be vacated was
contained wholly within the subdivision and is part of the
boundary of the subdivision, title to the vacated road or street
shall vest with the owner or owners of property contained
within the vacated subdivision.
This section shall not be construed as applying to the
vacation of any plat of state-granted tide or shore lands.
[1987 c 354 § 3.]
*Reviser's note: After amendment by 1987 c 228 § 1, RCW 35.79.030
no longer prohibited vacations of streets. Limitations on vacations of streets
abutting bodies of water are now found in RCW 35.79.035.
58.17.215
58.17.215 Alteration of subdivision—Procedure.
When any person is interested in the alteration of any subdivision or the altering of any portion thereof, except as provided in RCW 58.17.040(6), that person shall submit an
application to request the alteration to the legislative authority of the city, town, or county where the subdivision is
located. The application shall contain the signatures of the
majority of those persons having an ownership interest of
lots, tracts, parcels, sites, or divisions in the subject subdivision or portion to be altered. If the subdivision is subject to
restrictive covenants which were filed at the time of the
approval of the subdivision, and the application for alteration
would result in the violation of a covenant, the application
shall contain an agreement signed by all parties subject to the
covenants providing that the parties agree to terminate or
alter the relevant covenants to accomplish the purpose of the
alteration of the subdivision or portion thereof.
Upon receipt of an application for alteration, the legislative body shall provide notice of the application to all owners
of property within the subdivision, and as provided for in
RCW 58.17.080 and 58.17.090. The notice shall either establish a date for a public hearing or provide that a hearing may
be requested by a person receiving notice within fourteen
days of receipt of the notice.
The legislative body shall determine the public use and
interest in the proposed alteration and may deny or approve
the application for alteration. If any land within the alteration
is part of an assessment district, any outstanding assessments
shall be equitably divided and levied against the remaining
lots, parcels, or tracts, or be levied equitably on the lots
resulting from the alteration. If any land within the alteration
contains a dedication to the general use of persons residing
within the subdivision, such land may be altered and divided
equitably between the adjacent properties.
After approval of the alteration, the legislative body shall
order the applicant to produce a revised drawing of the
approved alteration of the final plat or short plat, which after
signature of the legislative authority, shall be filed with the
county auditor to become the lawful plat of the property.
This section shall not be construed as applying to the
alteration or replatting of any plat of state-granted tide or
shore lands. [1987 c 354 § 4.]
58.17.217
58.17.217 Alteration or vacation of subdivision—
Conduct of hearing. Any hearing required by RCW
58.17.212, 58.17.215, or 58.17.060 may be administered by a
hearings examiner as provided in RCW 58.17.330. [1987 c
354 § 7.]
[Title 58 RCW—page 15]
58.17.218
Title 58 RCW: Boundaries and Plats
58.17.218
58.17.218 Alteration of subdivision—Easements by
dedication. The alteration of a subdivision is subject to
RCW 64.04.175. [1991 c 132 § 2.]
58.17.220
58.17.220 Violation of court order or injunction—
Penalty. Any person who violates any court order or injunction issued pursuant to this chapter shall be subject to a fine
of not more than five thousand dollars or imprisonment for
not more than ninety days or both. [1969 ex.s. c 271 § 22.]
58.17.225
58.17.225 Easement over public open space—May be
exempt from RCW 58.17.215—Hearing—Notice. The
granting of an easement for ingress and egress or utilities
over public property that is held as open space pursuant to a
subdivision or plat, where the open space is already used as a
utility right of way or corridor, where other access is not feasible, and where the granting of the easement will not impair
public access or authorize construction of physical barriers of
any type, may be authorized and exempted from the requirements of RCW 58.17.215 by the county, city, or town legislative authority following a public hearing with notice to the
property owners in the affected plat. [1995 c 32 § 1.]
58.17.230
58.17.230 Assurance of discontinuance of violations.
In the enforcement of this chapter, the prosecuting attorney
may accept an assurance of discontinuance of any act or practice deemed in violation of this chapter from any person
engaging in, or who has engaged in such act or practice. Any
such assurance shall be in writing and be filed with and subject to the approval of the superior court of the county in
which the alleged violation occurs. A violation of such assurance shall constitute prima facie proof of a violation of this
chapter. [1969 ex.s. c 271 § 23.]
58.17.240
58.17.240 Permanent control monuments. Except for
subdivisions excluded under the provisions of RCW
58.17.040, as now or hereafter amended, permanent control
monuments shall be established at each and every controlling
corner on the boundaries of the parcel of land being subdivided. The local authority shall determine the number and
location of permanent control monuments within the plat, if
any. [1974 ex.s. c 134 § 11; 1969 ex.s. c 271 § 24.]
58.17.250
58.17.250 Survey of subdivision and preparation of
plat. The survey of the proposed subdivision and preparation
of the plat shall be made by or under the supervision of a registered land surveyor who shall certify on the plat that it is a
true and correct representation of the lands actually surveyed.
[1969 ex.s. c 271 § 26.]
58.17.260
58.17.260 Joint committee—Members—Recommendations for surveys, monumentation and plat drawings.
In order that there be a degree of uniformity of survey monumentation throughout the cities, towns and counties of the
state of Washington, there is hereby created a joint committee
composed of six members to be appointed as follows: The
Washington state association of counties shall appoint two
county road engineers; the association of Washington cities
shall appoint two city engineers; the land surveyors association of Washington shall appoint one member; and the consulting engineers association of Washington shall appoint
one member. The joint committee is directed to cooperate
with the department of natural resources to establish recommendations pertaining to requirements of survey, monumentation and plat drawings for subdivisions and dedications
throughout the state of Washington. The department of natural resources shall publish such recommendation. [1971 ex.s.
c 85 § 9; 1969 ex.s. c 271 § 27.]
58.17.275
58.17.275 Proposals to adopt, amend, or repeal local
ordinances—Advance notice. All cities, towns, and counties shall establish procedures to provide reasonable advance
notice of proposals to adopt, amend, or repeal local ordinances adopted in accordance with this chapter. These procedures shall include but not be limited to advance notice to
individuals or organizations which have submitted requests
for notice. Reasonable fees may be charged to defray the
costs of providing notice. [1981 c 293 § 13.]
Severability—1981 c 293: See note following RCW 58.17.010.
58.17.280
58.17.280 Naming and numbering of short subdivisions, subdivisions, streets, lots and blocks. Any city, town
or county shall, by ordinance, regulate the procedure
whereby short subdivisions, subdivisions, streets, lots and
blocks are named and numbered. A lot numbering system and
a house address system, however, shall be provided by the
municipality for short subdivisions and subdivisions and
must be clearly shown on the short plat or final plat at the
time of approval. [1993 c 486 § 1; 1969 ex.s. c 271 § 29.]
58.17.290
58.17.290 Copy of plat as evidence. A copy of any plat
recorded in the manner provided in this chapter and certified
by the county auditor of the county in which the same is
recorded to be a true copy of such record and the whole
thereof, shall be received in evidence in all the courts of this
state, with like effect as the original. [1969 ex.s. c 271 § 31.]
58.17.300
58.17.255
58.17.255 Survey discrepancy—Disclosure. Whenever a survey of a proposed subdivision or short subdivision
reveals a discrepancy, the discrepancy shall be noted on the
face of the final plat or short plat. Any discrepancy shall be
disclosed in a title report prepared by a title insurer and issued
after the filing of the final plat or short plat. As used in this
section, "discrepancy" means: (1) A boundary hiatus; (2) an
overlapping boundary; or (3) a physical appurtenance, which
indicates encroachment, lines of possession, or conflict of
title. [1987 c 354 § 6.]
[Title 58 RCW—page 16]
58.17.300 Violations—Penalties. Any person, firm,
corporation, or association or any agent of any person, firm,
corporation, or association who violates any provision of this
chapter or any local regulations adopted pursuant thereto
relating to the sale, offer for sale, lease, or transfer of any lot,
tract or parcel of land, shall be guilty of a gross misdemeanor
and each sale, offer for sale, lease or transfer of each separate
lot, tract, or parcel of land in violation of any provision of this
chapter or any local regulation adopted pursuant thereto, shall
be deemed a separate and distinct offense. [1969 ex.s. c 271
§ 32.]
(2004 Ed.)
Assessor’s Plats
58.17.310
58.17.310 Approval of plat within irrigation district
without provision for irrigation prohibited. In addition to
any other requirements imposed by the provisions of this
chapter, the legislative authority of any city, town, or county
shall not approve a short plat or final plat, as defined in RCW
58.17.020, for any subdivision, short subdivision, lot, tract,
parcel, or site which lies in whole or in part in an irrigation
district organized pursuant to chapter 87.03 RCW unless
there has been provided an irrigation water right of way for
each parcel of land in such district. In addition, if the subdivision, short subdivision, lot, tract, parcel, or site lies within
land within the district classified as irrigable, completed irrigation water distribution facilities for such land may be
required by the irrigation district by resolution, bylaw, or rule
of general applicability as a condition for approval of the
short plat or final plat by the legislative authority of the city,
town, or county. Rights of way shall be evidenced by the
respective plats submitted for final approval to the appropriate legislative authority. In addition, if the subdivision, short
subdivision, lot, tract, parcel, or site to be platted is wholly or
partially within an irrigation district of two hundred thousand
acres or more and has been previously platted by the United
States bureau of reclamation as a farm unit in the district, the
legislative authority shall not approve for such land a short
plat or final plat as defined in RCW 58.17.020 without the
approval of the irrigation district and the administrator or
manager of the project of the bureau of reclamation, or its
successor agency, within which that district lies. Compliance
with the requirements of this section together with all other
applicable provisions of this chapter shall be a prerequisite,
within the expressed purpose of this chapter, to any sale,
lease, or development of land in this state. [1990 c 194 § 1;
1986 c 39 § 1; 1985 c 160 § 1; 1973 c 150 § 2.]
58.18.010
(c) The decision may be given the effect of a final decision of the legislative body.
The legislative authority shall prescribe procedures to be
followed by a hearing examiner.
(2) Each final decision of a hearing examiner shall be in
writing and shall include findings and conclusions, based on
the record, to support the decision. Each final decision of a
hearing examiner, unless a longer period is mutually agreed
to by the applicant and the hearing examiner, shall be rendered within ten working days following conclusion of all
testimony and hearings. [1995 c 347 § 429; 1994 c 257 § 6;
1977 ex.s. c 213 § 4.]
Finding—Severability—Part headings and table of contents not
law—1995 c 347: See notes following RCW 36.70A.470.
Severability—1994 c 257: See note following RCW 36.70A.270.
Severability—1977 ex.s. c 213: See note following RCW 35.63.130.
58.17.900
58.17.900 Validation of existing ordinances and resolutions. All ordinances and resolutions enacted at a time
prior to the passage of this chapter by the legislative bodies of
cities, towns, and counties and which are in substantial compliance with the provisions of this chapter, shall be construed
as valid and may be further amended to include new provisions and standards as are authorized in general law. [1969
ex.s. c 271 § 33.]
58.17.910
58.17.910 Severability—1969 ex.s. c 271. If any provision of this chapter, or its application to any person or circumstance is held invalid, the remainder of this chapter, or
the application of the provision to other persons or circumstances is not affected. [1969 ex.s. c 271 § 35.]
58.17.920
58.17.320
58.17.320 Compliance with chapter and local regulations—Enforcement. Whenever land within a subdivision
granted final approval is used in a manner or for a purpose
which violates any provision of this chapter, any provision of
the local subdivision regulations, or any term or condition of
plat approval prescribed for the plat by the local government,
then the prosecuting attorney, or the attorney general if the
prosecuting attorney shall fail to act, may commence an
action to restrain and enjoin such use and compel compliance
with the provisions of this chapter or the local regulations, or
with such terms or conditions. The costs of such action may
be taxed against the violator. [1974 ex.s. c 134 § 13.]
58.17.920 Effective date and application of 1974 ex.s.
c 134. (1) The provisions of *this 1974 amendatory act shall
become effective July 1, 1974.
(2) The provisions of *this 1974 amendatory act shall not
apply to any plat which has been granted preliminary
approval prior to July 1, 1974, but shall apply to any proposed plat granted preliminary approval on or after July 1,
1974. [1974 ex.s. c 134 § 14.]
*Reviser's note: For codification of "this 1974 amendatory act" [1974
ex.s. c 134], see Codification Tables, Volume 0.
Chapter 58.18
Chapter 58.18 RCW
ASSESSOR'S PLATS
58.17.330
58.17.330 Hearing examiner system—Adoption
authorized—Procedures—Decisions. (1) As an alternative
to those provisions of this chapter requiring a planning commission to hear and issue recommendations for plat approval,
the county or city legislative body may adopt a hearing examiner system and shall specify by ordinance the legal effect of
the decisions made by the examiner. The legal effect of such
decisions shall include one of the following:
(a) The decision may be given the effect of a recommendation to the legislative body;
(b) The decision may be given the effect of an administrative decision appealable within a specified time limit to the
legislative body; or
(2004 Ed.)
Sections
58.18.010
Assessor's plat—Requisites, filing, index, etc.—When official
plat.
58.18.010
58.18.010 Assessor's plat—Requisites, filing, index,
etc.—When official plat. In any county where an assessor
has and maintains an adequate set of maps drawn from surveys at a scale of not less than two hundred feet to the inch,
the assessor may with the permission of the county commissioners, file an assessor's plat of the area, which when filed
shall become the official plat for all legal purposes, provided:
(1) The plat is filed in the offices of the county auditor
and the county assessor, together with a list of the existing
[Title 58 RCW—page 17]
Chapter 58.19
Title 58 RCW: Boundaries and Plats
legal descriptions and a list of the new legal descriptions as
assigned by the county assessor;
(2) The recorded plat is drawn in such a manner that a
ready reference can be made to the legal description in existence prior to the time of the filing of the assessor's plat and in
conformance with existing statutes;
(3) The first year the tax roll and tax statement shall contain the prior legal description and the new legal description
as assigned and shown on the assessor's plat with a notation
that this legal description shall be used for all purposes;
(4) The county assessor shall maintain an index for reference to the prior and the existing legal descriptions of the parcels contained in the assessor's plats;
(5) Each dedicated plat after June 7, 1961, shall be submitted to the county assessor of the county wherein the plat is
located, for the sole purpose of assignment of parcel, tract,
block and or lot numbers and the county auditor shall not
accept any such plat for filing unless the said plat carries a
signed affidavit from the assessor to this effect, and a statement to the effect that the name of the plat shall be number
. . . . in the county of . . . . . . [1961 c 262 § 1.]
Chapter 58.19
Chapter 58.19 RCW
LAND DEVELOPMENT ACT
Sections
58.19.010
58.19.020
58.19.030
58.19.045
58.19.055
58.19.120
58.19.130
58.19.140
58.19.180
58.19.185
58.19.190
58.19.265
58.19.270
58.19.280
58.19.300
58.19.920
58.19.940
58.19.950
58.19.951
Purpose.
Definitions.
Exemptions from chapter.
Public offering statement—Developer's duties—Purchaser's
rights.
Public offering statement—Contents.
Report of changes required—Amendments.
Public offering statement form—Type and style restriction.
Public offering statement—Promotional use, distribution
restriction—Holding out that state or employees, etc.,
approve development prohibited.
Unlawful to sell lots or parcels subject to blanket encumbrance
which does not provide purchaser can obtain clear title—
Alternatives.
Requiring purchaser to pay additional sum to construct, complete or maintain development.
Advertising—Materially false, misleading, or deceptive statements prohibited.
Violations—Remedies—Attorneys' fees.
Violations deemed unfair practice subject to chapter 19.86
RCW.
Jurisdiction of superior courts.
Hazardous conditions—Notice.
Liberal construction.
Short title.
Severability—1973 1st ex.s. c 12.
Severability—1992 c 191.
Camping resort contracts—Nonapplicability of certain laws to: RCW
19.105.510.
Exemption of timeshares from chapter: RCW 64.36.290.
58.19.010
58.19.010 Purpose. The legislature finds and declares
that the sale and offering for sale of land or of interests in
associations which provide for the use or occupancy of land
touches and affects a great number of the citizens of this state
and that full and complete disclosure to prospective purchasers of pertinent information concerning land developments,
including any encumbrances or liens attached to the land and
the physical characteristics of the development is essential.
The legislature further finds and declares that delivery to prospective purchasers of a complete and accurate public offer[Title 58 RCW—page 18]
ing statement is necessary in order to adequately protect both
the economic and physical welfare of the citizens of this
state. It is the purpose of this chapter to provide for the reasonable regulation of the sale and offering for sale of any
interest in significant land developments within or without
the state of Washington, so that the prospective purchasers of
such interests might be provided with full, complete, and
accurate information of all pertinent circumstances affecting
their purchase. [1992 c 191 § 1; 1973 1st ex.s. c 12 § 1.]
58.19.020 Definitions. When used in this chapter,
unless the context otherwise requires:
(1) "Affiliate of a developer" means any person who
controls, is controlled by, or is under common control with a
developer.
(a) A person controls a developer if the person: (i) Is a
general partner, officer, director, or employer of the developer; (ii) directly or indirectly or acting in concert with one or
more other persons, or through one or more subsidiaries,
owns, controls, holds with power to vote, or holds proxies
representing, more than twenty percent of the voting interest
in the developer; (iii) controls in any manner the election of a
majority of the directors of the developer; or (iv) has contributed more than twenty percent of the capital of the developer.
(b) A person is controlled by a developer if the developer: (i) Is a general partner, officer, director, or employer of
the person; (ii) directly or indirectly or acting in concert with
one of [or] more other persons, or through one or more subsidiaries, owns, controls, holds with the power to vote, or
holds proxies representing, more than twenty percent of the
voting interest in the person; (iii) controls in any manner the
election of a majority of the directors of the person; or (iv)
has contributed more than twenty percent of the capital of the
person. Control does not exist if the powers described in this
subsection are held solely as security for an obligation and
are not exercised.
(2) "Blanket encumbrance" shall mean a trust deed,
mortgage, mechanic's lien, or any other lien or encumbrance,
securing or evidencing the payment of money and affecting
the land to be developed or affecting more than one lot or parcel of developed land, or an agreement affecting more than
one such lot or parcel by which the developer holds said
development under option, contract, sale, or trust agreement.
The term shall not include taxes and assessments levied by a
public authority.
(3) "Common promotional plan" means an offering of
related developed lands in a common promotional plan of
disposition. Elements relevant to whether the related developed lands are being offered as part of a common promotional plan include but are not limited to: Whether purchasers
of interests in the offered land will share in the use of common amenities, or other rights or privileges; whether the
offered lands are known, designated, or advertised as a common unit or by a common name; whether a common broker
or sales personnel, common sales office or facilities, or common promotional methods are utilized; and whether crossreferrals of prospective purchasers between sales operations
is utilized.
(4) "Developer" means any owner of a development who
offers it for disposition, or the principal agent of an inactive
owner.
58.19.020
(2004 Ed.)
Land Development Act
(5) "Development" or "developed lands" means land
which is divided or is proposed to be divided for the purpose
of disposition into twenty-six or more lots, parcels, or units
(excluding interests in camping resorts regulated under chapter 19.105 RCW and interests in condominiums regulated
under chapter 64.34 RCW) or any other land whether contiguous or not, if twenty-six or more lots, parcels, units, or interests are offered as a part of a common promotional plan of
advertising and sale.
(6) "Disposition" includes any sale, lease, assignment, or
exchange of any interest in any real property which is a part
of or included within a development, and also includes the
offering of property as a prize or gift when a monetary charge
or consideration for whatever purpose is required in conjunction therewith, and any other transaction concerning a development if undertaken for gain or profit.
(7) "Foreclosure" means a forfeiture or judicial or nonjudicial foreclosure of a mortgage, deed of trust, or real estate
contract, or a deed in lieu thereof.
(8) "Improvements" include all existing, advertised, and
governmentally required facilities such as streets, water, electricity, natural gas, telephone lines, drainage control systems,
and sewage disposal systems.
(9) "Offer" includes every inducement, solicitation, or
media advertisement which has as a principal aim to encourage a person to acquire an interest in land.
(10) "Owners association" means any profit or nonprofit
corporation, unincorporated association, or other organization or legal entity, a membership or other interest in which is
appurtenant to or based upon owing an interest in a development.
(11) "Person" means an individual, corporation, government or governmental subdivision or agency, business trust,
estate, trust, partnership, unincorporated association, two or
more of any of the foregoing having a joint or common interest, or any other legal or commercial entity.
(12) "Physical hazard" means a physical condition which
poses, or may very likely pose, a material risk of either:
Material damage to the development and improvements
thereon; or material endangerment to the safety and health of
persons using the development and improvements thereon.
(13) "Purchaser" means a person who acquires or
attempts to acquire or succeeds to any interest in land.
(14) "Related developed lands" means two or more
developments which are owned by the same developer or an
affiliate or affiliates of that developer and which are physically located within the same five-mile radius area.
(15) "Residential buildings" shall mean premises that are
actually intended or used primarily for residential or recreational purposes by the purchasers. [1992 c 191 § 2; 1979 c
158 § 208; 1973 1st ex.s. c 12 § 2.]
58.19.030 Exemptions from chapter. (1) Unless the
method of disposition is adopted for the purpose of evasion of
this chapter, the provisions of this chapter shall not apply to
land and offers or dispositions:
(a) By a purchaser of developed lands for his or her own
account in a single or isolated transaction;
(b) If fewer than ten separate lots, parcels, units, or interests in developed lands are offered by a person in a period of
twelve months;
58.19.030
(2004 Ed.)
58.19.045
(c) If each lot offered in the development is five acres or
more;
(d) On which there is a residential, commercial, or industrial building, or as to which there is a legal obligation on the
part of the seller to construct such a building within two years
from date of disposition;
(e) To any person who acquires such lot, parcel, unit or
interest therein for the purpose of engaging in the business of
constructing residential, commercial, or industrial buildings
or for the purpose of resale or lease or other disposition of
such lots to persons engaged in such business or businesses;
(f) Any lot, parcel, unit or interest if the development is
located within an area incorporated prior to January 1, 1974;
(g) Pursuant to court order; or
(h) As cemetery lots or interests.
(2) Unless the method of disposition is adopted for the
purpose of evasion of this chapter, the provisions of this
chapter shall not apply to:
(a) Offers or dispositions of evidence of indebtedness
secured by a mortgage or deed of trust of real estate;
(b) Offers or dispositions of securities or units of interest
issued by a real estate investment trust regulated under any
state or federal statute;
(c) A development as to which the director has waived
the provisions of this chapter;
(d) Offers or dispositions of securities currently registered with the department of financial institutions;
(e) Offers or dispositions of any interest in oil, gas, or
other minerals or any royalty interest therein if the offers or
dispositions of such interests are regulated as securities by
the United States or by the department of financial institutions. [1994 c 92 § 504; 1979 c 158 § 209; 1973 1st ex.s. c 12
§ 3.]
58.19.045 Public offering statement—Developer's
duties—Purchaser's rights. (1) A developer shall prepare a
public offering statement conforming to the requirements of
RCW 58.19.055 unless the development or the transaction is
exempt under RCW 58.19.030.
(2) Any agent, attorney, or other person assisting the
developer in preparing the public offering statement may rely
upon information provided by the developer without independent investigation. The agent, attorney, or other person
shall not be liable for any material misrepresentation in or
omissions of material facts from the public offering statement
unless the person had actual knowledge of the misrepresentation or omission at the time the public offering statement was
prepared. The developer shall be liable for any misrepresentation contained in the public offering statement or for any
omission of material fact therefrom if the developer had
actual knowledge of the misrepresentation or omission or, in
the exercise of reasonable care, should have known of the
misrepresentation or omission.
(3) Unless the development or the transaction is exempt
under RCW 58.19.030, a developer shall provide a purchaser
of a lot, parcel, unit, or interest with a copy of the public
offering statement and all material amendments thereto
before conveyance of that lot, parcel, unit, or interest. Unless
a purchaser is given the public offering statement more than
two days before execution of a contract for the purchase of a
lot, parcel, unit, or interest, the purchaser, before conveyance,
58.19.045
[Title 58 RCW—page 19]
58.19.055
Title 58 RCW: Boundaries and Plats
shall have the right to cancel the contract within two days
after first receiving the public offering statement and, if necessary to have two days to review the public offering statement and cancel the contract, to extend the closing date for
conveyance to a date not more than two days after first
receiving the public offering statement. The purchaser shall
have no right to cancel the contract upon receipt of an amendment unless the purchaser would have that right under generally applicable legal principles. The two-day period shall not
include Saturdays, Sundays, or legal holidays.
(4) If a purchaser elects to cancel a contract pursuant to
subsection (3) of this section, the purchaser may do so by
hand-delivering notice thereof to the developer or by mailing
notice thereof by prepaid United States mail to the developer
for service of process. If cancellation is by mailing notice, the
date of the postmark on the mail shall be the official date of
cancellation. Cancellation is without penalty, and all payments made by the purchaser before cancellation shall be
refunded within thirty days from the date of cancellation.
(5) If a person required to deliver a public offering statement pursuant to subsection (1) of this section fails to provide
a purchaser to whom a lot, parcel, unit, or interest is conveyed
with that public offering statement and all material amendments thereto as required by subsection (3) of this section, the
purchaser is entitled to receive from that person an amount
equal to the actual damages suffered by the purchaser as a
result of the public offering statement not being delivered.
There shall be no liability for failure to deliver any amendment unless such failure would have entitled the purchaser
under generally applicable legal principles to cancel the contract for the purchase of the lot, parcel, unit, or interest had
the undisclosed information been evident to the purchaser
before the closing of the purchase.
(6) A purchaser may not rely on any representation or
express warranty unless it is contained in the public offering
statement or made in writing signed by the developer or
developer's agent identified in the public offering statement.
[1992 c 191 § 4.]
58.19.055 Public offering statement—Contents. (1)
A public offering statement shall contain the following information:
(a) The name, and the address or approximate location,
of the development;
(b) The name and address of the developer;
(c) The name and address of the management company,
if any, for the development;
(d) The relationship of the management company to the
developer, if any;
(e) The nature of the interest being offered for sale;
(f) A brief description of the permitted uses and use
restrictions pertaining to the development and the purchaser's
interest therein;
(g) The number of existing lots, parcels, units, or interests in the development and either the maximum number that
may be added to the development or the fact that such maximum number has not yet been determined;
(h) A list of the principal common amenities in the
development which materially affect the value of the development and those that will or may be added to the development;
58.19.055
[Title 58 RCW—page 20]
(i) The identification of any real property not in the
development, the owner of which has access to any of the
development, and a description of the terms of such access;
(j) The identification of any real property not in the
development to which owners in the development have
access and a description of the terms of such access;
(k) The status of construction of improvements in the
development, including either the estimated dates of completion if not completed or the fact that such estimated completion dates have not yet been determined; and the estimated
costs, if any, to be paid by the purchaser;
(l) The estimated current owners' association expense, if
any, for which a purchaser would be liable;
(m) An estimate of any payment with respect to any
owners' association expense for which the purchaser would
be liable at closing;
(n) The estimated current amount and purpose of any
fees not included in any owners' association assessments and
charged by the developer or any owners' association for the
use of any of the development or improvements thereto;
(o) Any assessments which have been agreed to or are
known to the developer and which, if not paid, may constitute
a lien against any portion of the development in favor of any
governmental agency;
(p) The identification of any parts of the development
which any purchaser will have the responsibility for maintaining;
(q) A brief description of any blanket encumbrance
which is subject to the provisions of RCW 58.19.180;
(r) A list of any physical hazards known to the developer
which particularly affect the development or the immediate
vicinity in which the development is located and which are
not readily ascertainable by the purchaser;
(s) A brief description of any construction warranties to
be provided to the purchaser;
(t) Any building code violation citations received by the
developer in connection with the development which have
not been corrected;
(u) A statement of any unsatisfied judgments or pending
suits against any owners' association involved in the development and a statement of the status of any pending suits material to the development of which the developer has actual
knowledge;
(v) A notice which describes a purchaser's right to cancel
the purchase agreement or extend the closing under RCW
58.19.045(3), including applicable time frames and procedures;
(w) A list of the documents which the prospective purchaser is entitled to receive from the developer before the
rescission period commences;
(x) A notice which states:
"A purchaser may not rely on any representation or
express warranty unless it is contained in the public offering
statement or made in writing signed by the developer or by
any person identified in the public offering statement as the
declarant's agent";
(y) A notice which states:
"This public offering statement is only a summary of
some of the significant aspects of purchasing an interest in
(2004 Ed.)
Land Development Act
this development and any documents which may govern or
affect the development may be complex, may contain other
important information, and create binding legal obligations.
You should consider seeking assistance of legal counsel";
and
(z) Any other information and cross-references which
the developer believes will be helpful in describing the development to the recipients of the public offering statement, all
of which may be included or not included at the option of the
developer.
(2) The public offering statement shall include copies of
each of the following documents: Any declaration of covenants, conditions, restrictions, and reservations affecting the
development; any survey, plat, or subdivision map; the articles of incorporation of any owners' association; the bylaws
of any owners' association; the rules and regulations, if any,
of any owners' association; current or proposed budget for
any owners' association; and the balance sheet of any owners'
association current within ninety days if assessments have
been collected for ninety days or more.
If any of the foregoing documents listed in this subsection are not available because they have not yet been executed, adopted, or recorded, drafts of such documents shall be
provided with the public offering statement, and, before closing the sale of an interest in the development, the purchaser
shall be given copies of any material changes between the
draft of the proposed documents and the final documents.
(3) The disclosures required by subsection (1)(v), (x),
and (y) of this section shall be located at the top of the first
page of the public offering statement and be typed or printed
in ten-point bold face type size. [1992 c 191 § 5.]
58.19.265
58.19.180 Unlawful to sell lots or parcels subject to
blanket encumbrance which does not provide purchaser
can obtain clear title—Alternatives. It shall be unlawful
for the developer to make a sale of lots or parcels within a
development which is subject to a blanket encumbrance
which does not contain, within its terms or by supplementary
agreement, a provision which shall unconditionally provide
that the purchaser of a lot or parcel encumbered thereby can
obtain the legal title, or other interest contracted for, free and
clear of the lien of such blanket encumbrance upon compliance with the terms and conditions of the purchase agreement, unless the developer shall elect and comply with one of
the following alternative conditions:
(1) The developer shall deposit earnest moneys and all
subsequent payments on the obligation in a neutral escrow
depository, or real estate trust account regulated under RCW
18.85.310, until such time as all payments on the obligation
have been made and clear title is delivered, or any of the following occurs:
(a) A proper release is obtained from such blanket
encumbrance;
(b) Either the developer or the purchaser defaults under
the sales contract and there is a forfeiture of the interest of the
purchaser or there is a determination as to the disposition of
such moneys, as the case may be; or
(c) The developer orders a return of such moneys to such
purchaser.
(2) The title to the development is held in trust under an
agreement of trust until the proper release of such blanket
encumbrance is obtained.
(3) The purchaser shall receive title insurance from a
licensed title insurance company against such blanket encumbrance. [1992 c 191 § 7; 1973 1st ex.s. c 12 § 18.]
58.19.180
58.19.120
58.19.120 Report of changes required—Amendments. The developer shall immediately amend the public
offering statement to include any material changes affecting
the development. No change in the substance of the promotional plan or plan of disposition or completion of the development may be made without first making an appropriate
amendment of the public offering statement. A public offering statement is not current unless it incorporates all amendments. [1992 c 191 § 6; 1973 1st ex.s. c 12 § 12.]
58.19.130
58.19.130 Public offering statement form—Type and
style restriction. No portion of the public offering statement
form may be underscored, italicized, or printed in larger or
heavier or different color type than the remainder of the statement unless the director so requires. [1973 1st ex.s. c 12 §
13.]
58.19.140
58.19.140 Public offering statement—Promotional
use, distribution restriction—Holding out that state or
employees, etc., approve development prohibited. The
public offering statement shall not be used for any promotional purposes. It may not be distributed to prospective purchasers before registration of the development and may be
distributed afterwards only when it is used in its entirety. No
person may advertise or represent that the state of Washington or the director, the department, or any employee thereof
approves or recommends the development or disposition
thereof. [1973 1st ex.s. c 12 § 14.]
(2004 Ed.)
58.19.185 Requiring purchaser to pay additional
sum to construct, complete or maintain development. It
shall be unlawful for the developer to sell a lot or parcel
within a development if the terms of the sale require that the
purchaser pay any sum in addition to the purchase price for
constructing, completing, or maintaining improvements to
the development unless the sums are to be paid directly to:
(1) A governmental agency;
(2) A person who is not affiliated with the developer, in
trust, and on terms acceptable to the director; or
(3) An association comprised solely of persons who have
purchased lots in the development, or their assignees.
The terms which require the payment of any additional
sum shall be set forth in the public offering statement. [1977
ex.s. c 252 § 1.]
58.19.185
58.19.190 Advertising—Materially false, misleading,
or deceptive statements prohibited. No person shall publish in this state any advertisement concerning a development
subject to the requirements of this chapter which contains any
statements that are materially false, misleading, or deceptive.
[1992 c 191 § 8; 1973 1st ex.s. c 12 § 19.]
58.19.190
58.19.265 Violations—Remedies—Attorneys' fees. If
a developer, or any other person subject to this chapter, fails
to comply with any provision of this chapter, any person or
class of persons adversely affected by the failure to comply
58.19.265
[Title 58 RCW—page 21]
58.19.270
Title 58 RCW: Boundaries and Plats
may seek appropriate relief through an action for damages or
an injunctive court order. The court, in an appropriate case,
may award attorneys' fees. [1992 c 191 § 9.]
58.19.940
58.19.940 Short title. This chapter may be cited as the
land development act. [1992 c 191 § 12; 1973 1st ex.s. c 12
§ 35.]
58.19.950
58.19.270
58.19.270 Violations deemed unfair practice subject
to chapter 19.86 RCW. (1) The commission by any person
of an act or practice prohibited by this chapter is hereby
declared to be a matter affecting the public interest for the
purpose of applying chapter 19.86 RCW and is not reasonable in relation to the development and preservation of business. A violation of this chapter constitutes an unfair or
deceptive act or practice or unfair method of competition in
the conduct of trade or commerce for the purpose of the attorney general bringing an action in the name of the state under
the consumer protection act, pursuant to RCW 19.86.080.
(2) Evidence concerning violations of this chapter may
be referred to the attorney general, who may, in his or her discretion, with or without such a reference, in addition to any
other action the attorney general might commence, bring an
action in the name of the state against any person to restrain
and prevent the doing of any act or practice prohibited by this
chapter. This chapter shall be considered in conjunction with
chapters 9.04 and 19.86 RCW, and the powers and duties of
the attorney general as such powers and duties appear in
chapters 9.04 and 19.86 RCW shall apply against all persons
subject to this chapter.
(3) Only the attorney general can bring an action under
the consumer protection act, chapter 19.86 RCW, pursuant to
this section. [1992 c 191 § 10; 1973 1st ex.s. c 12 § 27.]
58.19.280
58.19.280 Jurisdiction of superior courts. Dispositions of an interest in a development are subject to this chapter, and the superior courts of this state have jurisdiction in
claims or causes of action arising under this chapter, if:
(1) The interest in a development offered for disposition
is located in this state;
(2) The developer maintains an office in this state; or
(3) Any offer or disposition of an interest in a development is made in this state, whether or not the offeror or
offeree is then present in this state, if the offer originates
within this state or is directed by the offeror to a person or
place in this state and received by the person or at the place to
which it is directed. [1973 1st ex.s. c 12 § 28.]
58.19.300
58.19.300 Hazardous conditions—Notice. If, before
disposition of all or any portion of a development which is
covered by this chapter, a condition constituting a physical
hazard is discovered on or around the immediate vicinity of
the development, the developer or government agency discovering such condition shall notify the purchasers of the
affected lands either by transmitting notice through the
appropriate county assessor's office or such other steps as
might reasonably give actual notice to the purchasers. [1992
c 191 § 11; 1973 1st ex.s. c 12 § 30.]
58.19.950 Severability—1973 1st ex.s. c 12. If any
provision of this 1973 act or the application thereof to any
person or circumstance is held invalid, the invalidity shall not
affect other provisions or applications of the act which can be
given effect without the invalid provisions or application, and
to this end the provisions of this 1973 act are severable.
[1973 1st ex.s. c 12 § 36.]
58.19.951
58.19.951 Severability—1992 c 191. If any provision
of this act or its application to any person or circumstances is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1992 c 191 § 14.]
Chapter 58.20 RCW
WASHINGTON COORDINATE SYSTEM
Chapter 58.20
Sections
58.20.110
58.20.120
58.20.130
58.20.140
58.20.150
58.20.160
58.20.170
58.20.180
58.20.190
58.20.200
58.20.210
58.20.220
58.20.901
Definitions.
System designation—Permitted uses.
Plane coordinates adopted—Zones.
Designation of system—Zones.
Designation of coordinates—"N" and "E."
Tract in both zones—Description.
Zones—Technical definitions.
Recording coordinates—Control stations.
Conversion of coordinates—Metric.
Term—Limited use.
United States survey prevails—Conflict.
Real estate transactions—Exemption.
Severability—1989 c 54.
58.20.110
58.20.110 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout RCW 58.20.110 through 58.20.220 and
58.20.901:
(1) "Committee" means the interagency federal geodetic
control committee or its successor;
(2) "GRS 80" means the geodetic reference system of
1980 as adopted in 1979 by the international union of geodesy and geophysics defined on an equipotential ellipsoid;
(3) "National geodetic survey" means the national ocean
service's national geodetic survey of the national oceanic and
atmospheric administration, United States department of
commerce, or its successor;
(4) "Washington coordinate system of 1927" means the
system of plane coordinates in effect under this chapter until
July 1, 1990, which is based on the North American datum of
1927 as determined by the national geodetic survey of the
United States department of commerce;
(5) "Washington coordinate system of 1983" means the
system of plane coordinates under this chapter based on the
North American datum of 1983 as determined by the national
geodetic survey of the United States department of commerce. [1989 c 54 § 9.]
58.19.920
58.19.920 Liberal construction. The provisions of this
chapter shall be construed liberally so as to give effect to the
purposes stated in RCW 58.19.010. [1973 1st ex.s. c 12 §
33.]
[Title 58 RCW—page 22]
58.20.120
58.20.120 System designation—Permitted uses. Until
July 1, 1990, the Washington coordinate system of 1927, or
its successor, the Washington coordinate system of 1983,
(2004 Ed.)
Washington Coordinate System
may be used in Washington for expressing positions or locations of points on the surface of the earth. On and after that
date, the Washington coordinate system of 1983 shall be the
designated coordinate system in Washington. The Washington coordinate system of 1927 may be used only for purposes
of reference after June 30, 1990. [1989 c 54 § 10.]
58.20.130
58.20.130 Plane coordinates adopted—Zones. The
system of plane coordinates which has been established by
the national geodetic survey for defining and stating the positions or locations of points on the surface of the earth within
the state of Washington is designated as the "Washington
coordinate system of 1983."
For the purposes of this system the state is divided into a
"north zone" and a "south zone."
The area now included in the following counties shall
constitute the north zone: Chelan, Clallam, Douglas, Ferry,
Island, Jefferson, King, Kitsap, Lincoln, Okanogan, Pend
Oreille, San Juan, Skagit, Snohomish, Spokane, Stevens,
Whatcom, and that part of Grant lying north of parallel 47°
30' north latitude.
The area now included in the following counties shall
constitute the south zone: Adams, Asotin, Benton, Clark,
Columbia, Cowlitz, Franklin, Garfield, that part of Grant
lying south of parallel 47° 30' north latitude, Grays Harbor,
Kittitas, Klickitat, Lewis, Mason, Pacific, Pierce, Skamania,
Thurston, Wahkiakum, Walla Walla, Whitman and Yakima.
[1989 c 54 § 11.]
58.20.140
58.20.140 Designation of system—Zones. As established for use in the north zone, the Washington coordinate
system of 1983 shall be named, and in any land description in
which it is used it shall be designated, the "Washington coordinate system of 1983, north zone."
As established for use in the south zone, the Washington
coordinate system of 1983 shall be named, and in any land
description in which it is used it shall be designated, the
"Washington coordinate system of 1983, south zone." [1989
c 54 § 12.]
58.20.150
58.20.150 Designation of coordinates—"N" and "E."
"N" and "E" shall be used in labeling coordinates of a point
on the earth's surface and in expressing the position or location of such point relative to the origin of the appropriate
zone of this system, expressed in meters and decimals of a
meter. These coordinates shall be made to depend upon and
conform to the coordinates, on the Washington coordinate
system of 1983, of the horizontal control stations of the
national geodetic survey within the state of Washington, as
those coordinates have been determined, accepted, or
adjusted by the survey. [1989 c 54 § 13.]
58.20.160
58.20.160 Tract in both zones—Description. When
any tract of land to be defined by a single description extends
from one into the other of the coordinate zones under RCW
58.20.130, the positions of all points on its boundaries may
be referred to either of the zones, the zone which is used
being specifically named in the description. [1989 c 54 § 14.]
(2004 Ed.)
58.20.200
58.20.170
58.20.170 Zones—Technical definitions. For purposes of more precisely defining the Washington coordinate
system of 1983, the following definition by the national geodetic survey is adopted:
The Washington coordinate system of 1983, north zone,
is a Lambert conformal conic projection of the GRS 80 spheroid, having standard parallels at north latitudes 47° 30' and
48° 44', along which parallels the scale shall be exact. The
origin of coordinates is at the intersection of the meridian
120° 50' west of Greenwich and the parallel 47° 00' north latitude. This origin is given the coordinates: E = 500,000
meters and N = 0 meters.
The Washington coordinate system of 1983, south zone,
is a Lambert conformal conic projection of the GRS 80 spheroid, having standard parallels at north latitudes 45° 50' and
47° 20', along which parallels the scale shall be exact. The
origin of coordinates is at the intersection of the meridian
120° 30' west of Greenwich and the parallel 45° 20' north latitude. This origin is given the coordinates: E = 500,000
meters and N = 0 meters. [1989 c 54 § 15.]
58.20.180
58.20.180 Recording coordinates—Control stations.
Coordinates based on the Washington coordinate system of
1983, purporting to define the position of a point on a land
boundary, may be presented to be recorded in any public land
records or deed records if the survey method used for the
determination of these coordinates is established in conformity with standards and specifications prescribed by the
interagency federal geodetic control committee, or its successor. These surveys shall be connected to monumented control
stations that are adjusted to and published in the national network of geodetic control by the national geodetic survey and
such connected horizontal control stations shall be described
in the land or deed record. Standards and specifications of the
committee in force on the date of the survey shall apply. In all
instances where reference has been made to such coordinates
in land surveys or deeds, the scale and sea level factors shall
be stated for the survey lines used in computing ground distances and areas.
The position of the Washington coordinate system of
1983 shall be marked on the ground by horizontal geodetic
control stations which have been established in conformity
with the survey standards adopted by the committee and
whose geodetic positions have been rigorously adjusted on
the North American datum of 1983, and whose coordinates
have been computed and published on the system defined in
RCW 58.20.110 through 58.20.220 and 58.20.901. Any such
control station may be used to establish a survey connection
with the Washington coordinate system of 1983. [1989 c 54
§ 16.]
58.20.190
58.20.190 Conversion of coordinates—Metric. Any
conversion of coordinates between the meter and the United
States survey foot shall be based upon the length of the meter
being equal to exactly 39.37 inches. [1989 c 54 § 17.]
58.20.200
58.20.200 Term—Limited use. The use of the term
"Washington coordinate system of 1983" on any map, report
of survey, or other document, shall be limited to coordinates
[Title 58 RCW—page 23]
58.20.210
Title 58 RCW: Boundaries and Plats
based on the Washington coordinate system of 1983 as
defined in this chapter. [1989 c 54 § 18.]
58.20.210
58.20.210 United States survey prevails—Conflict.
Whenever coordinates based on the Washington coordinate
system of 1983 are used to describe any tract of land which in
the same document is also described by reference to any subdivision, line or corner of the United States public land surveys, the description by coordinates shall be construed as
supplemental to the basic description of such subdivision,
line, or corner contained in the official plats and field notes
filed of record, and in the event of any conflict the description
by reference to the subdivision, line, or corner of the United
States public land surveys shall prevail over the description
by coordinates. [1989 c 54 § 19.]
58.20.220
58.20.220 Real estate transactions—Exemption.
Nothing contained in this chapter shall require any purchaser
or mortgagee to rely on a description, any part of which
depends exclusively upon the Washington coordinate system
of 1927 or 1983. [1989 c 54 § 20.]
58.20.901
58.20.901 Severability—1989 c 54. If any provision of
this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1989 c 54 § 21.]
Chapter 58.22
Chapter 58.22 RCW
STATE BASE MAPPING SYSTEM
Sections
58.22.010
58.22.020
58.22.030
58.22.040
58.22.050
(1) A series of fifteen minute United States geological
survey quadrangle map separates at a scale of one to 48,000
(one inch equals 4,000 feet) covering the entire state;
(2) A series of seven and one-half minute United States
geological survey quadrangle map separates at a scale of one
to 24,000 (one inch equals 2,000 feet) for urban areas; including but not limited to those identified as urban by the state
department of transportation for the United States department
of transportation.
All features and symbols added to the quadrangle separates shall meet as nearly as is practical national map accuracy standards and specifications as defined by the United
States geological survey for their fifteen minute and seven
and one-half minute quadrangle map separates.
Each quadrangle shall be revised by the department of
natural resources as necessary to reflect current conditions.
[1984 c 7 § 367; 1973 1st ex.s. c 159 § 2.]
Severability—1984 c 7: See note following RCW 47.01.141.
58.22.030
58.22.030 United States geological survey quadrangle map separates—Acquisition by state agencies. Any
state agency purchasing or acquiring United States geological
survey quadrangle map separates shall do so through the
department of natural resources. [1973 1st ex.s. c 159 § 3.]
58.22.040
58.22.040 United States geological survey quadrangle map separates—State depository. The department of
natural resources shall be the primary depository of all
United States geological survey quadrangle map separates for
state agencies: PROVIDED, That any state agency may
maintain duplicate copies. [1973 1st ex.s. c 159 § 4.]
58.22.050
Legislative intent.
Establishment and maintenance—Standards.
United States geological survey quadrangle map separates—
Acquisition by state agencies.
United States geological survey quadrangle map separates—
State depository.
Availability of map separates—Powers and duties of department.
Surveys and maps account established for purposes of chapter 58.22 RCW:
RCW 58.24.060.
58.22.010
58.22.010 Legislative intent. It is the intent of the legislature to establish a coordinated system of state base maps
to assist all levels of government to more effectively provide
the information to meet their responsibilities for resource
planning and management.
It is further the legislature's intent to eliminate duplication, to insure compatibility, and to create coordination
through a uniform base which all agencies will use.
It is in the interest of all citizens in the state of Washington that a state base mapping system be established to make
essential base maps available at cost to all users, both public
and private. [1973 1st ex.s. c 159 § 1.]
58.22.050 Availability of map separates—Powers
and duties of department. (1) All United States geological
survey quadrangle map separates shall be available at cost to
all state agencies, local agencies, the federal government, and
any private individual or company through duplication and
purchase.
The department shall coordinate all requests for the use
of United States geological survey quadrangle map separates
and shall provide advice on how to best use the system.
(2) The department shall maintain a catalogue showing
all United States geological survey quadrangle map separates
available. The department shall also catalogue information
describing additional separates or products created by users.
Copies of maps made for any state or local agency shall be
available to any other state or local agency. [1973 1st ex.s. c
159 § 5.]
Chapter 58.24 RCW
STATE AGENCY FOR SURVEYS AND MAPS—FEES
Chapter 58.24
Sections
58.24.010
58.24.020
58.24.030
58.22.020
58.22.020 Establishment and maintenance—Standards. The department of natural resources shall establish
and maintain a state base mapping system. The standards for
the state base mapping system shall be:
[Title 58 RCW—page 24]
58.24.040
58.24.050
58.24.060
Declaration of necessity.
Official agency designated—Advisory board.
Official agency designated—Powers—Cooperate and
advise—Purposes.
Official agency designated—Powers—Standards, maps,
records, report, temporary removal of boundary marks or
monuments.
Employees—Licensed engineers or surveyors.
Surveys and maps account—Purposes.
(2004 Ed.)
State Agency for Surveys and Maps—Fees
58.24.070
Fees for filing and recording surveys, plats, or maps—Deposit
and use of fees.
Cemetery property—Surveys and maps, plats, etc.: Chapter 68.24 RCW.
Counties—Land surveys, record of surveys: RCW 36.32.370, 36.32.380.
Geological survey: Chapter 43.27A RCW.
Irrigation districts—Map of district: RCW 87.03.775.
Public lands—Maps and plats—Record and index—Public inspection: RCW
79.02.210.
Reclamation districts—Surveys, etc.: Chapter 89.30 RCW.
Regulation of public ground waters—Designating or modifying boundaries
of areas—Notice of hearing—Findings—Order: RCW 90.44.130.
Restoration of United States survey markers: RCW 47.36.010.
State highways and toll bridges
copy of map, plans, etc.—Fee: RCW 47.28.060.
maps, plans, etc.—Filing: RCW 47.28.040.
58.24.010
58.24.010 Declaration of necessity. It is the responsibility of the state to provide a means for the identification and
preservation of survey points for the description of common
land boundaries in the interest of the people of the state.
There is a necessity for the adoption and maintenance of a
system of permanent reference as to boundary monuments.
The department of natural resources shall be the recognized
agency for the establishment of this system. [1987 c 466 § 4;
1982 c 165 § 1; 1951 c 224 § 2.]
Severability—1951 c 224: "If any provision of this act shall be
declared invalid, such invalidity shall not affect any other portion of this act
which can be given effect without the invalid provision, and to this end the
provisions of this act are declared to be severable." [1951 c 224 § 7.]
58.24.020 Official agency designated—Advisory
board. The department of natural resources is designated as
the official agency for surveys and maps. The commissioner
of public lands shall appoint an advisory board of five members, the majority of whom shall be registered professional
engineers or land surveyors, who shall serve at the pleasure
of the commissioner. Members of the board shall serve without salary but are to receive travel expenses in accordance
with RCW 43.03.050 and 43.03.060 as now existing or hereafter amended while actively engaged in the discharge of
their duties. [1987 c 466 § 5; 1982 c 165 § 2; 1975-'76 2nd
ex.s. c 34 § 152; 1951 c 224 § 3.]
58.24.020
Effective date—Severability—1975-'76 2nd ex.s. c 34: See notes following RCW 2.08.115.
Severability—1951 c 224: See note following RCW 58.24.010.
Department of natural resources to exercise powers and duties of commissioner of public lands: RCW 43.30.411.
58.24.030
58.24.030 Official agency designated—Powers—
Cooperate and advise—Purposes. The commissioner of
public lands, the department of natural resources, and the
advisory board are authorized to cooperate and advise with
various departments and subdivisions of the state, counties,
municipalities, and registered engineers or land surveyors of
the state for the following purposes:
(1) The recovery of section corners or other land boundary marks;
(2) The monumentation of accepted section corners, and
other boundary and reference marks; said monumentation
shall be adequately connected to adjusted United States coast
and geodetic survey triangulation stations and the coordinates
of the monuments computed to conform with the Washington
(2004 Ed.)
58.24.040
coordinate system in accordance with the provisions of chapter 58.20 RCW, as derived from chapter 168, Laws of 1945;
(3) For facilitation and encouragement of the use of the
Washington state coordinate system; and
(4) For promotion of the use of the level net as established by the United States coast and geodetic survey. [1987
c 466 § 6; 1982 c 165 § 3; 1951 c 224 § 4.]
Severability—1951 c 224: See note following RCW 58.24.010.
58.24.040
58.24.040 Official agency designated—Powers—
Standards, maps, records, report, temporary removal of
boundary marks or monuments. The agency designated by
RCW 58.24.020 is further authorized to:
(1) Set up standards of accuracy and methods of procedure;
(2) Compile and publish maps and records from surveys
performed under the provisions of this chapter, and to maintain suitable indexes of surveys to prevent duplication of
effort and to cooperate with all agencies of local, state, and
federal government to this end;
(3) Compile and maintain records of all surveys performed under the provisions of this chapter, and assemble
and maintain records of all reliable survey monuments and
bench marks within the state;
(4) Collect and preserve information obtained from surveys locating and establishing land monuments and land
boundaries;
(5) Supervise the sale and distribution of cadastral and
geodetic survey data, and such related survey maps and publications as may come into the possession of the department
of natural resources. Revenue derived from the sale thereof
shall be deposited in the surveys and maps account in the
general fund;
(6) Supervise the sale and distribution of maps, map
data, photographs, and such publications as may come into
the possession of the department of natural resources.
(7) Submit, as part of the biennial report of the commissioner of public lands, a report of the accomplishments of the
agency;
(8) Permit the temporary removal or destruction of any
section corner or any other land boundary mark or monument
by any person, corporation, association, department, or subdivision of the state, county, or municipality as may be necessary or desirable to accommodate construction, mining,
and other development of any land: PROVIDED, That such
section corner or other land boundary mark or monument
shall be referenced to the Washington Coordinate System by
a registered professional engineer or land surveyor prior to
such removal or destruction, and shall be replaced or a suitable reference monument established by a registered professional engineer or land surveyor within a reasonable time
after completion of such construction, mining, or other development: AND PROVIDED FURTHER, That the department
of natural resources shall adopt and promulgate reasonable
rules and regulations under which the agency shall authorize
such temporary removal or destruction and require the
replacement of such section corner or other land boundary
marks or monuments. [1987 c 466 § 7; 1982 c 165 § 4; 1969
ex.s. c 271 § 25; 1951 c 224 § 6.]
Severability—1969 ex.s. c 271: See RCW 58.17.910.
[Title 58 RCW—page 25]
58.24.050
Title 58 RCW: Boundaries and Plats
Severability—1951 c 224: See note following RCW 58.24.010.
58.24.050
58.24.050 Employees—Licensed engineers or surveyors. All employees who are in responsible charge of
work under the provisions of this chapter shall be licensed
professional engineers or land surveyors. [1982 c 165 § 5;
1951 c 224 § 5.]
Severability—1951 c 224: See note following RCW 58.24.010.
58.28.170
58.28.180
58.28.190
58.28.200
58.28.201
58.28.202
58.28.203
58.28.204
UNINCORPORATED TOWNS ON UNITED STATES LAND
58.28.210
58.24.060
58.24.060 Surveys and maps account—Purposes.
There is created in the state treasury the surveys and maps
account which shall be a separate account consisting of funds
received or collected under chapters 58.22 and 58.24 RCW,
moneys appropriated to it by law. This account shall be used
exclusively by the department of natural resources for carrying out the purposes and provisions of chapters 58.22 and
58.24 RCW. Appropriations from the account shall be
expended for no other purposes. [1991 sp.s. c 13 § 14; 1987
c 466 § 8; 1985 c 57 § 65; 1983 c 272 § 1; 1982 c 165 § 6.]
Effective dates—Severability—1991 sp.s. c 13: See notes following
RCW 18.08.240.
Effective date—1985 c 57: See note following RCW 18.04.105.
58.24.070
58.24.070 Fees for filing and recording surveys, plats,
or maps—Deposit and use of fees. A fee set by the board of
natural resources shall be charged by each county auditor, in
addition to any other fees required by law, as a condition precedent to the filing and recording of any surveys, subdivision
plats, short plats, and condominium surveys, plats, or maps.
Such funds shall be forwarded monthly to the state treasurer
to be deposited in the surveys and maps account in the general fund. The fees shall be verified in the same manner as
other fees collected by the county auditor. Fees collected
under this section shall be expended by the department only
for the activities prescribed in this chapter. [1987 c 466 § 9;
1983 c 272 § 2; 1982 c 165 § 7.]
Condominium surveys and maps: RCW 64.32.100.
Plats and subdivisions: Chapter 58.17 RCW.
Chapter 58.28 RCW
TOWNSITES ON UNITED STATES LAND—
ACQUISITION OF LAND
Chapter 58.28
Sections
INCORPORATED TOWNS ON UNITED STATES LAND
58.28.010
58.28.020
58.28.030
58.28.040
58.28.050
58.28.060
58.28.070
58.28.080
58.28.090
58.28.100
58.28.110
58.28.120
58.28.130
58.28.140
58.28.150
58.28.160
Councils' duties when townsites on United States land.
Councils' duties when townsites on United States land—Survey and plat.
Councils' duties when townsites on United States land—
Plats—Filing.
Councils' duties when townsites on United States land—Survey, notice of—Bids for—Franchises continued.
Contents of plat.
Monuments—Location, placement requisites.
Monuments—Markings—Surveyor's certificate on plat.
Plats filed—Auditor's fee.
Assessments.
Notice of possession filed—Assessment and fee—Certificate—Council record.
Deficiency assessment—When payable.
Deed to claimants—Actions contesting title, limitations on.
Entries on mineral lands—Rights of claimants.
Conflicting claims—Procedure.
Notice of filing patent—Abandonment of claim.
Sale of unoccupied lots—Notice—Minimum price.
[Title 58 RCW—page 26]
Lands for school and municipal purposes—Funds.
Effect of informalities—Certificate or deed as prima facie evidence.
Corporate authorities to act promptly.
Proof requisite to delivery of deed.
Title to vacated lots by occupancy and improvements.
Controversies, by whom settled—Review.
Platted lands declared dedicated to public use.
Appeals—Procedure.
58.28.220
58.28.230
58.28.240
58.28.250
58.28.260
58.28.270
58.28.280
58.28.290
58.28.300
58.28.310
58.28.320
58.28.330
58.28.340
58.28.350
58.28.360
58.28.370
58.28.380
58.28.390
58.28.400
58.28.410
58.28.420
58.28.430
58.28.440
58.28.450
58.28.460
58.28.470
58.28.480
58.28.490
58.28.500
58.28.510
58.28.520
Unincorporated towns on United States land—Superior court
judge to file claim.
Petition to superior court judge—Contents—Procedure.
Survey and plat—Boundaries—Monuments.
Plats—Filing.
Survey, notice of—Bids for—Franchises continued.
Contents of plat.
Monuments—Location, placement requisites.
Monuments—Markings—Surveyor's certificate on plat.
Plats filed—Auditor's fee.
Assessments—Disposition—Employment of attorney authorized.
Notice of possession filed—Assessment and fee—Certificate—Judge's record.
Deficiency assessment—When payable.
Deed to claimants—Actions contesting title, limitations on.
Entries on mineral lands—Rights of claimants.
Conflicting claims—Procedure.
Proof of right—Costs upon failure of both conflicting parties.
Notice of filing patent.
Abandonment of claim.
Sale of unoccupied lots—Notice—Minimum price.
Lands for school and public purposes—Expenses as charge
against fund.
Disposition of excess money—Special fund.
Effect of informalities—Certificate or deed as prima facie evidence.
Proof requisite to delivery of deed.
Platted lands declared dedicated to public use.
Clerk's duties when judge trustee.
Accounting and depositing money—Promptness.
Records filed with county clerk.
Judge, a trustee for purposes herein.
Appellate review—Procedure.
Succession of trust.
Title to vacated lots by occupancy and improvements.
Controversies, by whom settled—Review.
INCORPORATED TOWNS ON UNITED STATES LAND
58.28.010 Councils' duties when townsites on United
States land. It is the duty of the city or town council of any
city or town in this state situate upon public lands of the
United States or lands, the legal and equitable title to which is
in the United States of America, to enter at the proper land
office of the United States such quantity of land as the inhabitants of any incorporated city or town may be entitled to
claim, in the aggregate, according to their population, in the
manner required by the laws of the United States and the regulations prescribed by the secretary of the interior of the
United States, and by order entered upon their minutes and
proceedings, at a regular meeting, to authorize and direct the
mayor and clerk of such council, attested by the corporate
seal, to make and sign all necessary declaratory statements,
certificates, and affidavits, or other instruments requisite to
carry into effect the intentions of this chapter and the intentions of the act of congress of the United States entitled "An
act for the relief of the inhabitants of cities and towns upon
the public lands," approved March 2, 1867, and all acts of
congress amendatory thereof and supplemental thereto,
including section sixteen of an act of congress entitled "An
act to repeal timber culture laws and for other purposes,"
approved March 3, 1891, and to make proof, when required,
58.28.010
(2004 Ed.)
Townsites on United States Land—Acquisition of Land
of the facts necessary to establish the claim of such inhabitants to the lands so granted by said acts of congress, and file
in the proper United States land office a proper application in
writing describing the tracts of land on which such city or
town is situate, and make proof and payment for such tracts
of land in the manner required by law. [1909 c 231 § 1; RRS
§ 11485. Prior: 1888 c 124 pp 216-220.]
58.28.020
58.28.020 Councils' duties when townsites on United
States land—Survey and plat. Said council must cause a
survey to be made by some competent person, of the lands
which the inhabitants of said city or town may be entitled to
claim under the said act of congress, located according to the
legal subdivisions of the sections and by the section lines of
the United States, and the same must be distinctly marked by
suitable monuments; such survey must further particularly
designate all streets, roads, lanes and alleys, public squares,
churches, school lots, cemeteries, commons and levees as the
same exist and have been heretofore dedicated in any manner
to public use, and by measurement the precise boundaries and
area of each, and every lot or parcel of land and premises
claimed by any person, corporations or associations within
said city or townsite must, as far as known by the surveyor, be
designated on the plat, showing the name or names of the
possessor or occupants and claimants, and in case of any disputed claim as to lots, lands, premises or boundaries the said
surveyor, if the same be demanded by any person, shall designate the lines in different color from the body of the plat of
such part of any premises so disputed or claimed adversely.
[1909 c 231 § 2; RRS § 11486. Prior: 1888 c 124 pp 216220.]
58.28.030
58.28.030 Councils' duties when townsites on United
States land—Plats—Filing. A plat thereof must be made in
triplicate, on a scale of not less than eighty feet to one inch,
which must be duly certified under oath by the surveyor, one
of which must be filed with the county auditor of the county
wherein the city or town is situated, one must be deposited in
the proper United States land office, and one with the city or
town clerk. These plats shall be considered public records,
and each must be accompanied with a copy of the field notes,
and the county auditor must make a record of such plat in a
book to be kept by him for that purpose, and such county
auditor must file a copy of said field notes in his office. The
said surveyor must number the blocks as divided by the
roads, highways and streets opened and generally used, and
for which a public necessity exists at the time of making such
survey, and must number the several lots consecutively in
each block, and all other parcels of land within said town or
city surveyed as herein provided, which said numbers must
be a sufficient description of any parcel of land in said plats.
Said survey and plat thereof shall conform as near as may be
to the existing rights, interests and claims of the occupants
thereof, but no lot in the central or business portion of such
city or town shall exceed in area four thousand, two hundred
square feet, and no suburban lot in such city or town shall
exceed two acres in area. [1909 c 231 § 3; RRS § 11487.
Prior: 1888 c 124 pp 216-220.]
(2004 Ed.)
58.28.060
58.28.040
58.28.040 Councils' duties when townsites on United
States land—Survey, notice of—Bids for—Franchises
continued. Before proceeding to make such survey, at least
ten days' notice thereof must be given, by posting within the
limits of such city or townsite, not less than five written or
printed notices of the time when such survey shall commence, or by publication thereof in a newspaper published in
the city or town, if one there be. The survey of said city or
town lands must be made to the best advantage and at the
least expense to the holders, claimants and occupants thereof;
and the council is hereby authorized and directed to receive
bids for such surveying, and to let the same by contract to the
lowest competent bidder: PROVIDED, That the possessors,
owners and claimants of water works, electric light, telegraph, telephone, pipe or power lines, sewers and like or similar property located in such roads, streets, alleys and other
public places in such cities and towns shall be maintained and
protected in the same, as the same shall exist at the time of the
entry in the United States land office of the land embracing
such city or town, and the right to continue to use such property for the purposes for which said property was intended, is
hereby acknowledged and confirmed. [1909 c 231 § 4; RRS
§ 11488. Prior: 1888 c 124 pp 216-220.]
58.28.050
58.28.050 Contents of plat. Such plat must show as
follows:
(1) All streets, alleys, avenues, roads and highways, and
the width thereof.
(2) All parks, squares and all other grounds reserved for
public uses, with the boundaries and dimensions thereof.
(3) All lots and blocks, with their boundaries, designating such lots and blocks by numbers, and giving the dimensions of every lot.
(4) The angles of intersection of all boundary lines of the
lots and block, whenever the angle of intersection is not a
right angle.
(5) The location of all stone or iron monuments set to
establish street lines.
(6) The exterior boundaries of the piece of land so platted, giving such boundaries by true courses and distances.
(7) The location of all section corners, quarter section or
meander corners of sections within the limits of said plat.
(8) In case no such section or quarter section or meander
corners are within the limits of the plat, it must show a connection line to some corner or initial point of the government
surveys, or a government mineral monument, if there be any
within one mile of such townsite. All distances marked on the
plat must be in feet and decimals of a foot. [1909 c 231 § 5;
RRS § 11489. Prior: 1888 c 124 pp 216-220.]
58.28.060
58.28.060 Monuments—Location, placement requisites. Such surveyor must mark all corners of blocks or lots
shown on the plat by substantial stakes or monuments, and
must set stone or iron monuments at the points of intersection
of the center lines of all the streets, where practicable, or as
near as possible to such points, and their location must be
shown by marking on the plat the distances to the block corners adjacent thereto. The top of such monument must be
placed one foot below the surface of the ground, and in size
must be at least six inches by six inches by six inches, and be
[Title 58 RCW—page 27]
58.28.070
Title 58 RCW: Boundaries and Plats
placed in the ground to the depth of one foot. [1909 c 231 §
6; RRS § 11490. Prior: 1888 c 124 pp 216-220.]
58.28.070
58.28.070 Monuments—Markings—Surveyor's certificate on plat. If a stone is used as a monument, it must
have a cross cut in the top at the point of intersection of the
center lines of streets, or a hole may be drilled in the stone to
mark such point. If an iron monument is used it must be at
least two inches in diameter by two and one-half feet in
length, and may be either solid iron or pipe. The dimensions
of the monuments must be marked on the plat, and reference
thereto made in the field notes, and establish permanently the
lines of all the streets. The surveyor must make and subscribe
on the plat a certificate that such survey was made in accordance with the provisions of this chapter, stating the date of
survey, and verify the same by his oath. [1909 c 231 § 7;
RRS § 11491. Prior: 1888 c 124 pp 216-220.]
58.28.080
58.28.080 Plats filed—Auditor's fee. All such plats
must be made on mounted drawing paper, and filed and
recorded in the office of the county auditor, and he must keep
the original plat for public inspection. The fee of such county
auditor for filing and recording each of such plats and the
field notes accompanying the same shall be the sum of ten
dollars. [1909 c 231 § 8; RRS § 11492. Prior: 1888 c 124 pp
216-220.]
58.28.090
58.28.090 Assessments. Each lot or parcel of said lands
having thereon valuable improvements or buildings ordinarily used as dwellings or for business purposes, not exceeding one-tenth of one acre in area, shall be rated and assessed
by the said corporate authorities at the sum of one dollar;
each lot or parcel of such lands exceeding one-tenth and not
exceeding one-eighth of one acre in area, shall be rated and
assessed at the sum of one dollar and fifty cents; each lot or
parcel of such lands exceeding in area one-eighth of one acre
and not exceeding one-quarter of an acre in area, shall be
rated and assessed at the sum of two dollars; and each lot or
parcel of such lands exceeding one-quarter of an acre and not
exceeding one-half of one acre in area, shall be rated and
assessed at the sum of two dollars and fifty cents; and each lot
or parcel of land so improved exceeding one-half acre in area
shall be assessed at the rate of two dollars and fifty cents for
each half an acre or fractional part over half an acre; and
every lot or parcel of land enclosed, which may not otherwise
be improved, claimed by any person, corporation, or association, shall be rated and assessed at the rate of two dollars per
acre or fractional part over an acre; and where upon one parcel of land there shall be two or more separate buildings
occupied or used ordinarily as dwellings or for business purposes each such building, for the purposes of this section,
shall be considered as standing on a separate lot of land; but
the whole of such premises may be conveyed in one deed;
which moneys so assessed must be received by the clerk and
be paid by him into the city or town treasury. [1909 c 231 §
9; RRS § 11493. Prior: 1888 c 124 pp 216-220.]
58.28.100
58.28.100 Notice of possession filed—Assessment and
fee—Certificate—Council record. Every person, company, corporation or association claimant of any city or town
[Title 58 RCW—page 28]
lot or parcel of land within the limits of such city or townsite,
must present to the council, by filing the same with the clerk
thereof, within three months after the patent (or certified copy
thereof) from the United States has been filed in the office of
the county auditor, his, her, its or their affidavit, (or by guardian or next friend where the claimant is under disability), verified in person or by duly authorized agent, attorney, guardian or next friend, in which must be concisely stated the facts
constituting the possession or right of possession of the
claimant, and that the claimant is entitled to the possession
thereof and to a deed therefor as against all other persons, to
the best of his knowledge and belief, and stating who was an
occupant of such lot or parcel of land at the time of the entry
of such townsite at the United States land office, to which
must be attached a copy of so much of the plat of said city or
townsite as will fully exhibit the particular lot or parcel of
land so claimed, and every such claimant, at the time of filing
such affidavit, must pay to such clerk such sum of money as
said clerk shall certify to be due for the assessment mentioned
in RCW 58.28.090, together with the further sum of four dollars, to be appropriated to the payment of expenses incurred
in carrying out the provisions of this chapter, and the said
clerk must thereupon give to such claimant a certificate,
attested by the corporate seal, containing a description of the
lot or parcel of land claimed, and setting forth the amounts
paid thereon by such claimant. The council of every such city
or town must procure a bound book, wherein the clerk must
make proper entries of the substantial matters contained in
every such certificate issued by him, numbering the same in
consecutive order, setting forth the name of the claimant or
claimants in full, date of issue, and description of lot or lands
claimed. [1909 c 231 § 10; RRS § 11494. Prior: 1888 c 124
pp 216-220.]
58.28.110
58.28.110 Deficiency assessment—When payable. If
it is found that the amounts hereinbefore specified as assessments and fees for costs and expenses prove to be insufficient
to cover and defray all the necessary expenses, the council
must estimate the deficiency and assess such deficiency pro
rata upon all the lots and parcels of land in such city or town,
and declare the same upon the basis set down in RCW
58.28.090, which additional amount, if any, may be paid by
the claimant at the time when the certificate hereinafter [hereinbefore] mentioned, or at the time when the deed of conveyance hereinbefore [hereinafter] provided for, is issued. [1909
c 231 § 11; RRS § 11495. Prior: 1888 c 124 pp 216-220.]
58.28.120
58.28.120 Deed to claimants—Actions contesting
title, limitations on. At the expiration of six months after the
time of filing of such patent, or a certified copy thereof in the
office of the county auditor, if there has been no adverse
claim filed in the meantime, the council must execute and
deliver to such claimant, his or her, its or their heirs, executors, administrators, grantees, successors or assigns a good
and sufficient deed of the premises described in the application of the claimant originally filed, if proper proof shall have
been made, which said deed must be signed and acknowledged by the mayor or other presiding officer of the council,
and attested by the corporate seal of such city or town. No
conveyance of any such lands made as in this chapter pro(2004 Ed.)
Townsites on United States Land—Acquisition of Land
vided, concludes the rights of third persons; but such third
persons may have their action in the premises, to determine
their alleged interest in such lands and their right to the legal
title thereto against such grantee, his, her, its or their heirs,
successors or assigns, to which they may deem themselves
entitled either in law or equity; but no action for the recovery
or possession of such premises, or any portion thereof, or to
establish the right to the legal title thereto, must be maintained in any court against the grantee named therein, or
against his, her, its or their legal representatives or assigns,
unless such action shall be commenced within six months
after such deed shall have been filed for record in the office
of the county auditor of the county where such lands are situate; nothing herein shall be construed to extend the time of
limitation prescribed by law for the commencement of
actions upon the possessory claim or title to real estate, when
such action is barred by law at the time of the passage of this
chapter. [1909 c 231 § 12; RRS § 11496. Prior: 1888 c 124
pp 216-220.]
58.28.160
such premises, in accordance with the judgment, adjudging
the claimant to have been an occupant of any particular lot or
lots at the time of the entry of such townsite in the United
States land office, or to be the successor in interest of such
occupant. If in any action brought under this chapter, or under
said acts of congress, the right to the ground in controversy
shall not be established by either party, the court or jury shall
so find and judgment shall be entered accordingly. In such
case costs shall not be allowed to either party, and neither
party shall be entitled to a deed to the ground in controversy,
and in such action it shall be incumbent upon each claimant
to establish that he, she or it was an occupant of the ground in
controversy within the meaning of the said acts of congress at
the time of the entry of said townsite in the United States land
office, or is the successor in interest of such occupant. [1909
c 231 § 14; RRS § 11498. Prior: 1888 c 124 pp 216-220.]
Proof of right—Costs upon failure of both conflicting parties: RCW
58.28.360.
58.28.150
58.28.130
58.28.130 Entries on mineral lands—Rights of claimants. Townsite entries may be made by incorporated towns
or cities on the mineral lands of the United States, but no title
shall be acquired by such towns or cities to any vein of gold,
silver, cinnabar, copper or lead, or to any valid mining claim
or possession held under existing law. When mineral veins
are possessed within the limits of an incorporated town or
city, and such possession is recognized by local authority or
by the laws of the United States, the title to town lots shall be
subject to such recognized possession and the necessary use
thereof and when entry has been made or patent issued for
such townsites to such incorporated town or city, the possessor of such mineral vein may enter and receive patent for
such mineral vein, and the surface ground appertaining
thereto: PROVIDED, That no entry shall be made by such
mineral vein claimant for surface ground where the owner or
occupier of the surface ground shall have had possession of
the same before the inception of the title of the mineral vein
applicant. [1909 c 231 § 13; RRS § 11497. Prior: 1888 c 124
pp 216-220.]
58.28.150 Notice of filing patent—Abandonment of
claim. The said council must give public notice by advertising for four weeks in a newspaper published in said city or
town, or, if there be no newspaper published in said city or
town, then by publication in some newspaper having general
circulation in such city or town, and not less than five written
or printed notices must be posted in public places within the
limits of such city or townsite; such notice must state that
patent for said townsite (or certified copy thereof) has been
filed in the county auditor's office. If any person, company,
association or any other claimant of lands in such city or town
fails, neglects or refuses to make application to the council
for a deed of conveyance to the lands so claimed, and to pay
the sums of money specified in this chapter, within three
months after filing of such patent, or a certified copy thereof,
in the office of the county auditor, shall be deemed to have
abandoned the same and to have forfeited all right, title and
interest therein or thereto both in law and in equity as against
the trustee of said townsite, and such abandoned or forfeited
lot or lots shall be sold as unoccupied lands, and the proceeds
thereof placed in the special fund in this chapter mentioned.
[1909 c 231 § 15; RRS § 11499. Prior: 1888 c 124 pp 216220.]
58.28.140
58.28.140 Conflicting claims—Procedure. In all cases
of adverse claims or disputes arising out of conflicting claims
to lands or concerning boundary lines, the adverse claimants
may submit the decision thereof to the council of such city or
town by an agreement in writing specifying particularly the
subject matter in dispute, and may agree that their decision
shall be final. The council must hear the proofs, and shall
order a deed to be executed or denied in accordance with the
facts; but in all other cases of adverse claims, the party out of
possession shall commence his action in a court of competent
jurisdiction within six months after the time of filing of the
patent from the United States (or a certified copy thereof), in
the office of the county auditor. In case such action be commenced, the plaintiff must serve a notice of lis pendens upon
the mayor, who must thereupon stay all proceedings in the
matter of granting any deed to the land in dispute until the
final decision in such suit; and upon presentation of a certified copy of the final judgment of such court in such action,
the council must cause to be executed and delivered a deed of
(2004 Ed.)
58.28.160
58.28.160 Sale of unoccupied lots—Notice—Minimum price. All lots in such city or townsite which were
unoccupied at the time of the entry of said townsite in the
United States land office shall be sold by the corporate
authorities of such city or town, or under their direction, at
public auction to the highest bidder for cash, each lot to be
sold separately, and notice of such sale or sales shall be given
by posting five written or printed notices in public places
within said townsite, giving the time and particular place of
sale, which notices must be posted for at least thirty days
prior to the date of said sale, and by publishing a like notice
for four consecutive weeks prior to such sale in a newspaper
published in such city or town, or, if no such newspaper be
published in such city or town, then in some newspaper having general circulation in such city or town, and deeds shall
be given therefor to the several purchasers: PROVIDED,
That no such unoccupied lot shall be sold for less than five
dollars in addition to an assessment equivalent to assessment
[Title 58 RCW—page 29]
58.28.170
Title 58 RCW: Boundaries and Plats
provided in RCW 58.28.090, and all moneys arising from
such sale, after deducting the costs and expenses of such sale
or sales, shall be placed in the treasury of such city or town.
[1909 c 231 § 16; RRS § 11500. Prior: 1888 c 124 pp 216220.]
58.28.170
58.28.170 Lands for school and municipal purposes—Funds. All school lots or parcels of land, reserved or
occupied for school purposes, must be conveyed to the school
district in which such city or town is situated, without cost or
charge of any kind whatever. All lots or parcels of land
reserved or occupied for municipal purposes must be conveyed to such city or town without cost or charge of any kind
whatever. All expenses necessarily incurred or contracted by
the carrying into effect of the provisions of this chapter are a
charge against the city or town on behalf of which the work
was done, and such expenses necessarily incurred, either
before or after the incorporation thereof, shall be paid out of
the treasury of such city or town upon the order of the council
thereof; and all moneys paid for lands or to defray the
expenses of carrying into effect the provisions of this chapter
shall be paid into the city or town treasury by the officer or
officers receiving the same, and shall constitute a special
fund, from which shall be paid all expenses, and the surplus,
if any there be, shall be expended under the direction of the
city or town council for public improvements in such city or
town. [1909 c 231 § 17; RRS § 11501. Prior: 1888 c 124 pp
216-220.]
58.28.180
58.28.180 Effect of informalities—Certificate or deed
as prima facie evidence. No mere informality, failure or
omission on the part of any of the persons or officers named
in this chapter invalidates the acts of such person or officer;
but every certificate or deed granted to any person pursuant to
the provisions of this chapter is prima facie evidence that all
preliminary proceedings in relation thereto have been correctly taken and performed, and that the recitals therein are
true and correct. [1909 c 231 § 18; RRS § 11502. Prior: 1888
c 124 pp 216-220.]
58.28.190
58.28.190 Corporate authorities to act promptly.
Such corporate authorities shall promptly execute and perform all duties imposed upon them by the provisions of this
chapter. [1909 c 231 § 19; RRS § 11503. Prior: 1888 c 124
pp 216-220.]
58.28.200
58.28.200 Proof requisite to delivery of deed. No
deed to any lot or parcel of land in such townsite entry shall
be made or delivered to any alleged occupant thereof before
proof shall have been made under oath showing such claimant to have been an occupant of such lot or parcel of land
within the meaning of said laws of congress at the time of the
entry of such townsite at the proper United States land office,
but the grantees, heirs, successors in interest or assigns of
such occupant of any lot, as such, may receive such deed.
[1909 c 231 § 20; RRS § 11504. Prior: 1888 c 124 pp 216220.]
58.28.201
58.28.201 Title to vacated lots by occupancy and
improvements. See RCW 58.28.510.
[Title 58 RCW—page 30]
58.28.202 Controversies, by whom settled—Review.
See RCW 58.28.520.
58.28.202
58.28.203 Platted lands declared dedicated to public
See RCW 58.28.440.
58.28.203
use.
58.28 .20 4 Appeals—Procedure.
58.28.490.
58.28.204
See RCW
UNINCORPORATED TOWNS ON
UNITED STATES LAND
58.28.210 Unincorporated towns on United States
land—Superior court judge to file claim. It is the duty of
the judge of the superior court of any county in this state to
enter at the proper land office of the United States such quantity of land as the inhabitants of any unincorporated town, situate upon lands the legal and equitable title to which is in the
United States of America, or situate upon public lands of the
United States within the county wherein such superior court
is held, may be entitled to claim in the aggregate, according
to their population, in the manner required by the laws of the
United States, and valid regulations prescribed by the secretary of the interior of the United States, and to make and sign
all necessary declaratory statements, certificates and affidavits, or other instruments requisite to carry into effect the
intentions of this chapter, and the intention of the act of congress of the United States entitled "An act for the relief of the
inhabitants of cities and towns upon the public lands,"
approved March 2, 1867, and all acts of congress amendatory
thereof and supplemental thereto, and to file in the proper
United States land office a proper application in writing,
describing the tracts of land on which such unincorporated
town is situated, and all lands entitled to be embraced in such
government townsite entry, and make proof and payment for
such tracts of land in the manner required by law. [1909 c
231 § 21; RRS § 11505. Prior: 1888 c 124 pp 216-220.]
58.28.210
58.28.220 Petition to superior court judge—Contents—Procedure. The judge of the superior court of any
county in this state, whenever he is so requested by a petition
signed by not less than five residents, householders in any
such unincorporated town, whose names appear upon the
assessment roll for the year preceding such application in the
county wherein such unincorporated town is situated—which
petition shall set forth the existence, name and locality of
such town, whether such town is situated on surveyed or
unsurveyed lands, and if on surveyed lands an accurate
description according to the government survey of the legal
subdivisions sought to be entered as a government townsite
must be stated; the estimated number of its inhabitants; the
approximate number of separate lots or parcels of land within
such townsite, and the amount of land to which they are entitled under such acts of congress—must estimate the cost of
entering such land, and of the survey, platting and recording
of the same, and must endorse such estimate upon such petition, and upon receiving from any of the parties interested the
amount of money mentioned in such estimate, the said judge
may cause an enumeration of the inhabitants of such town to
be made by some competent person, exhibiting therein the
names of all persons residing in said proposed townsite and
58.28.220
(2004 Ed.)
Townsites on United States Land—Acquisition of Land
the names of occupants of lots, lands, or premises within such
townsite, alphabetically arranged, verified by his oath, and
cause such enumeration to be presented to such judge. [1909
c 231 § 22; RRS § 11506. Prior: 1888 c 124 pp 216-220.]
58.28.230
58.28.230 Survey and plat—Boundaries—Monuments. Such judge must thereupon cause a survey to be
made by some competent person, of the lands which the
inhabitants of said town may be entitled to claim under said
acts of congress, located according to the legal subdivisions
of the sections according to the government survey thereof,
and the same must be distinctly marked by suitable monuments; such survey must further particularly designate all
streets, roads, lanes, and alleys, public squares, churches,
school lots, cemeteries, commons, and levees, as the same
exist and have been heretofore dedicated, in any manner to
public use, and by measurement the precise boundaries and
area of each and every lot or parcel of land and premises
claimed by any person, corporation, or association within
said townsite must, as far as known by the surveyor, be designated on the plat, showing the name or names of the possessor, occupant or claimant; and in case of any disputed
claim as to lots, lands, premises or boundaries, the said surveyor, if the same be demanded by any person, shall designate the lines in different color from the body of the plat of
such part of any premises so disputed or claimed adversely;
said surveyor shall survey, lay out and plat all of said lands,
whether occupied or not, into lots, blocks, streets and alleys.
[1909 c 231 § 23; RRS § 11507. Prior: 1888 c 124 pp 216220.]
58.28.240
58.28.240 Plats—Filing. The plat thereof must be
made in triplicate on a scale of not less than eighty feet to an
inch, which must be duly certified under oath by the surveyor, one of which must be filed with the county auditor of
the county wherein such unincorporated town is situated, one
must be deposited in the proper United States land office, and
one with such judge. These plats shall constitute public
records, and must each be accompanied by a copy of the field
notes, and the county auditor must make a record of such plat
in a book to be kept by him for that purpose, and such county
auditor must file such copy of said field notes in his office.
The said surveyor must number and survey the blocks as
divided by the roads, and streets opened and generally used
and for which a public necessity exists, at the time of making
such survey, and must number the several lots consecutively
in each block, and all other parcels of land within said unincorporated town as herein provided, which said numbers
must be a sufficient description of any parcel of land represented on said plats. Said survey and plat thereof shall conform as nearly as may be to the existing rights, interest, and
claims of the occupants thereof, but no lot in the center or
business portion of said unincorporated town shall exceed in
area four thousand two hundred feet, and no suburban lot in
such unincorporated town shall exceed two acres in area.
[1909 c 231 § 24; RRS § 11508. Prior: 1888 c 124 pp
216-220.]
58.28.250
58.28.250 Survey, notice of—Bids for—Franchises
continued. Before proceeding to make such survey, at least
(2004 Ed.)
58.28.270
ten days' notice thereof must be given, by posting within the
limits of such townsite, not less than five written or printed
notices of the time when such survey shall commence, or by
publication thereof in a newspaper published in said town, if
one there be. The survey of said townsite must be made to the
best advantage and at the least expense to the holders, claimants, possessors and occupants thereof. The said judge is
hereby authorized and directed to receive bids for such surveying, platting and furnishing copies of the field notes, and
to let the same by contract to the lowest competent bidder:
PROVIDED, That the possessors, owners, or claimants of
water works, electric light, telegraph, telephone, pipe or
power lines, sewers, irrigating ditches, drainage ditches, and
like or similar property located in such townsites or in the
roads, streets, alleys or highways therein or in other public
places in such townsite, shall be maintained and protected in
the same as the same shall exist at the time of the entry in the
United States land office of the land embraced in such government townsite, and the right to continue to use such property, for the purposes for which said property was intended, is
hereby acknowledged and confirmed. [1909 c 231 § 25; RRS
§ 11509. Prior: 1888 c 124 pp 216-220.]
58.28.260
58.28.260 Contents of plat. Such plat must show as
follows:
(1) All streets, alleys, avenues, roads and highways, and
the width thereof.
(2) All parks, squares and all other ground reserved for
public uses, with the boundaries and dimensions thereof.
(3) All lots and blocks, with their boundaries, designating such lots and blocks by numbers, and giving the dimensions of every lot.
(4) The angles of intersection of all boundary lines of the
lots and block, whenever the angle of intersection is not a
right angle.
(5) The location of all stone or iron monuments set to
establish street lines.
(6) The exterior boundaries of the piece of land so platted, giving such boundaries by true courses and distances.
(7) The location of all section corners, or legal subdivision corners of sections within the limits of said plat.
(8) In case no such section or subdivision corners are
within the limits of the plat, it must show a connection line to
some corner or initial point of the government surveys, or a
government mineral monument, if there be any within one
mile of such townsite. All distances marked on the plat must
be in feet and decimals of a foot. [1909 c 231 § 26; RRS §
11510. Prior: 1888 c 124 pp 216-220.]
58.28.270
58.28.270 Monuments—Location, placement requisites. Such surveyor must mark all corners of blocks or lots
shown on the plat by substantial stakes or monuments, and
must set stone or iron monuments at the points of intersection
of the center lines of all the streets, where practicable, or as
near as possible to such points, and their location must be
shown by marking on the plat the distances to the block corners adjacent thereto. The top of such monument must be
placed one foot below the surface of the ground, and in size
must be at least six inches by six inches by six inches, and be
[Title 58 RCW—page 31]
58.28.280
Title 58 RCW: Boundaries and Plats
placed in the ground to the depth of one foot. [1909 c 231 §
27; RRS § 11511. Prior: 1888 c 124 pp 216-220.]
58.28.280
58.28.280 Monuments—Markings—Surveyor's certificate on plat. If a stone is used as a monument it must
have a cross cut in the top at the point of intersection of center
lines of streets, or a hole may be drilled in the stone to mark
such point. If an iron monument is used it must be at least two
inches in diameter by two and one-half feet in length, and
may be either solid iron or pipe. The dimensions of the monuments must be marked on the plat, and reference thereto
made in the field notes, and establish permanently the lines of
all the streets. The surveyor must make and subscribe on the
plat a certificate that such survey was made in accordance
with the provisions of this chapter, stating the date of survey,
and verify the same by his oath. [1909 c 231 § 28; RRS §
11512. Prior: 1888 c 124 pp 216-220.]
58.28.290
58.28.290 Plats filed—Auditor's fee. All such plats
must be made on mounted drawing paper, and filed and
recorded in the office of the county auditor, and he must keep
the original plat for public inspection. The fee of such county
auditor for filing and recording each of such plats, and the
field notes accompanying the same shall be the sum of ten
dollars. [1909 c 231 § 29; RRS § 11513. Prior: 1888 c 124
pp 216-220.]
58.28.300
58.28.300 Assessments—Disposition—Employment
of attorney authorized. Each lot or parcel of said lands having thereon valuable improvements or buildings ordinarily
used as dwellings or for business purposes, not exceeding
one-tenth of one acre in area, shall be rated and assessed by
the said judge at the sum of one dollar; each lot or parcel of
such lands exceeding one-tenth, and not exceeding oneeighth of one acre in area, shall be rated and assessed at the
sum of one dollar and five [fifty] cents; each lot or parcel of
such lands exceeding in area one-eighth of one acre and not
exceeding one-quarter of an acre in area, shall be rated and
assessed at the sum of two dollars; and each lot or parcel of
such lands exceeding one-quarter of an acre and not exceeding one-half of one acre in area, shall be rated and assessed at
the sum of two dollars and fifty cents; and each lot or parcel
of land so improved, exceeding one-half acre in area, shall be
assessed at the rate of two dollars and fifty cents for each half
an acre or fractional part over half an acre; and every lot or
parcel of land enclosed, which may not otherwise be
improved, claimed by any person, corporation, or association, shall be rated and assessed at the rate of two dollars per
acre or fractional part over an acre; and where upon one parcel of land there shall be two or more separate buildings
occupied or used ordinarily as dwellings or for business purposes, each such building, for the purposes of this section,
shall be considered as standing on a separate lot of land; but
the whole of such premises may be conveyed in one deed;
which moneys so assessed must constitute a fund from which
must be reimbursed or paid the moneys necessary to pay the
government of the United States for said townsite lands, and
interest thereon, if such moneys have been loaned or
advanced for the purpose and expenses of their location,
entry and purchase, and cost and expenses attendant upon the
[Title 58 RCW—page 32]
making of such survey, plats, publishing and recording,
including a reasonable attorney's fee for legal services necessarily performed, and the persons or occupants in such townsite procuring said townsite entry to be made, may employ an
attorney to assist them in so doing and to assist such judge in
the execution of his trust, and he shall be allowed by such
judge out of said fund a reasonable compensation for his services. [1909 c 231 § 30; RRS § 11514. Prior: 1888 c 124 pp
216-200.]
58.28.310
58.28.310 Notice of possession filed—Assessment and
fee—Certificate—Judge's record. Every person, company,
corporation, or association, claimant of any town lot or parcel
of land, within the limits of such townsite, must present to
such judge within three months after the patent (or a certified
copy thereof), from the United States has been filed in the
office of the county auditor, his, her, its or their affidavit, (or
by guardian or next friend where the claimant is under disability), verified in person, or by duly authorized agent or
attorney, guardian or next friend, in which must be concisely
stated the facts constituting the possession or right of possession of the claimant and that the claimant is entitled to the
possession thereof and to a deed therefor as against all other
persons or claimants, to the best of his knowledge and belief,
and in which must be stated who was an occupant of such lot
or parcel of land at the time of the entry of such townsite at
the United States land office, to which must be attached a
copy of so much of the plat of said townsite as will fully
exhibit the particular lots or parcels of land so claimed; and
every such claimant, at the time of presenting and filing such
affidavit with said judge, must pay to such judge such sum of
money as said judge shall certify to be due for the assessment
mentioned in RCW 58.28.300, together with the further sum
of four dollars, to be appropriated to the payment of cost and
expenses incurred in carrying out the provisions of this chapter, and the said judge must thereupon give to such claimant
a certificate, signed by him and attested by the seal of the
superior court, containing a description of the lot or parcel of
land claimed, and setting forth the amounts paid thereon by
such claimant. Such judge must procure a bound book for
each unincorporated government townsite in his county
wherein he must make proper entries of the substantial matters contained in such certificate issued by him, numbering
the same in consecutive order, setting forth the name of the
claimant or claimants in full, date of issue, and description of
the lot or lands claimed. [1909 c 231 § 31; RRS § 11515.
Prior: 1888 c 124 pp 216-220.]
58.28.320
58.28.320 Deficiency assessment—When payable. If
it is found that the amounts hereinbefore specified as assessments and fees for costs and expenses, prove to be insufficient to cover and defray all the necessary expenses, the said
judge must estimate the deficiency and assess such deficiency pro rata upon all the lots and parcels of land in such
government townsite, and declare the same upon the basis set
down in RCW 58.28.300; which additional amount, if any,
may be paid by the claimant at the time when the certificate
hereinbefore mentioned, or at the time when the deed of conveyance hereinafter provided for, is issued. [1909 c 231 § 32;
RRS § 11516. Prior: 1888 c 124 pp 216-220.]
(2004 Ed.)
Townsites on United States Land—Acquisition of Land
58.28.330
58.28.330 Deed to claimants—Actions contesting
title, limitations on. At the expiration of six months after the
time of filing such patent, or certified copy thereof, in the
office of the county auditor, if there has been no adverse
claim filed in the meantime, said judge must execute and
deliver to such claimant or to his, her, its or their heirs, executor, administrator, grantee, successor or assigns a good and
sufficient deed of the premises described in the application of
the claimant originally filed, if proper proof shall have been
made, which said deed must be signed and acknowledged by
such judge as trustee, and attested by the seal of the superior
court. No conveyance of any such lands made as in this chapter provided, concludes the rights of third persons; but such
third persons may have their action in the premises, to determine their alleged interest in such lands, and their right to the
legal title thereto, against such grantee, his, her, its or their
heirs, executors, administrators, successors or assigns, to
which they may deem themselves entitled, either in law or in
equity; but no action for the recovery or possession of such
premises, or any portion thereof, or to establish the right to
the legal title thereto, must be maintained in any court against
the grantee named therein, or against his, her, its or their
heirs, executors, administrators, successors or assigns, unless
such action shall be commenced within six months after such
deed shall have been filed for record in the office of the
county auditor of the county where such lands are situated;
nothing herein shall be construed to extend the time of limitation prescribed by law for the commencement of actions
upon a possessory claim or title to real estate, when such
action is barred by law at the time of the taking effect of this
chapter. [1909 c 231 § 33; RRS § 11517. Prior: 1888 c 124
pp 216-220.]
58.28.340
58.28.340 Entries on mineral lands—Rights of claimants. Townsite entries may be made by such judge on mineral lands of the United States, but no title shall be acquired
by such judge to any vein of gold, silver, cinnabar, copper or
lead, or to any valid mining claim or possession held under
existing laws. When mineral veins are possessed within the
limits of an unincorporated town, and such possession is recognized by local authority, or by the laws of the United
States, the title to town lots shall be subject to such recognized possession and the necessary use thereof, and when
entry has been made or patent issued for such townsite to
such judge, the possessor of such mineral vein may enter and
receive patent for such mineral vein, and the surface ground
appertaining thereto: PROVIDED, That no entry shall be
made by such mineral vein claimant for surface ground where
the owner or occupier of the surface ground shall have had
possession of the same before the inception of the title of the
mineral vein applicant. [1909 c 231 § 34; RRS § 11518.
Prior: 1888 c 124 pp 216-220.]
58.28.350
58.28.350 Conflicting claims—Procedure. In all cases
of adverse claims or disputes arising out of conflicting claims
to land or concerning boundary lines, the adverse claimants
may submit the decision thereof to said judge by an agreement in writing specifying particularly the subject matter in
dispute and may agree that his decision shall be final. The
said judge must hear the proofs, and shall execute a deed or
deny the execution of a deed in accordance with the facts; but
(2004 Ed.)
58.28.380
in all other cases of adverse claims the party out of possession
shall commence his action in a court of competent jurisdiction within six months after the filing of the patent (or a certified copy thereof) from the United States, in the office of the
county auditor. In case such action be commenced within the
time herein limited, the plaintiff must serve notice of lis pendens upon such judge, who must thereupon stay all proceedings in the matter of granting or executing any deed to the
land in dispute until the final decision in such suit; upon presentation of a certified copy of the final judgment in such
action, such judge must execute and deliver a deed of the premises, in accordance with the judgment, adjudging the claimant to have been an occupant of any particular lot or lots at the
time of the entry of such townsite in the United States land
office, or to be the successor in interest of such occupant.
[1909 c 231 § 35; RRS § 11519. Prior: 1888 c 124 pp 216220.]
58.28.360
58.28.360 Proof of right—Costs upon failure of both
conflicting parties. If in any action brought under this chapter, or under said acts of congress, the right to the ground in
controversy shall not be established by either party, the court
or jury shall so find and judgment shall be entered accordingly. In such case costs shall not be allowed to either party,
and neither party shall be entitled to a deed to the ground in
controversy, and in such action it shall be incumbent upon
each claimant or claimants to establish that he, she, it or they,
was or were, an occupant of the ground in controversy within
the meaning of said acts of congress at the time of the entry
of said townsite in the United States land office, or is or are
the successor, or successors in interest of such occupant.
[1909 c 231 § 36; RRS § 11520. Prior: 1888 c 124 pp 216220.]
Conflicting claims—Procedure: RCW 58.28.140.
58.28.370
58.28.370 Notice of filing patent. Said judge must
promptly give public notice by advertising for four weeks in
any newspaper published in such town, or if there be no
newspaper published in such town, then by publication in
some newspaper having general circulation in such town, and
not less than five written or printed notices must be posted in
public places within the limits of such townsite; such notice
must state that the patent for said townsite (or a certified copy
thereof) has been filed in the county auditor's office. [1909 c
231 § 37; RRS § 11521. Prior: 1888 c 124 pp 216-220.]
58.28.380
58.28.380 Abandonment of claim. If any person, company, association, or any other claimant of lands in such
townsite fails, neglects or refuses to make application to said
judge for a deed of conveyance to said land so claimed, and
pay the sums of money specified in this chapter, within three
months after the filing of such patent, or a certified copy
thereof, in the office of the county auditor, shall be deemed to
have abandoned the claim to such land and to have forfeited
all right, title, claim and interest therein or thereto both in law
and in equity as against the trustee of said townsite, and such
abandoned or forfeited lot or lots may be sold by such trustee
as unoccupied lands, and the proceeds thereof placed in the
fund heretofore mentioned in this chapter. [1909 c 231 § 38;
RRS § 11522. Prior: 1888 c 124 pp 216-220.]
[Title 58 RCW—page 33]
58.28.390
Title 58 RCW: Boundaries and Plats
58.28.390
58.28.390 Sale of unoccupied lots—Notice—Minimum price. All lots in such townsite which were unoccupied within the meaning of the said acts of congress at the
time of the entry of said townsite in the United States land
office shall be sold by such judge or under his direction, at
public auction to the highest bidder for cash, each lot to be
sold separately, and notice of such sale, or sales, shall be
given by posting five written or printed notices in public
places within said townsite, giving the time and particular
place of sale, which notices must be posted at least thirty days
prior to the date of any such sale, and by publishing a like
notice for four consecutive weeks prior to any such sale in a
newspaper published in such town, or if no newspaper be
published in such town, then in some newspaper having general circulation in such town. And deed shall be given therefor to the several purchasers: PROVIDED, That no such
unoccupied lot shall be sold for less than five dollars in addition to an assessment equivalent to assessment provided for
in RCW 58.28.300, and all moneys arising from such sale or
sales after deducting the cost and expenses of such sale or
sales shall be placed in the fund hereinbefore mentioned.
[1909 c 231 § 39; RRS § 11523. Prior: 1888 c 124 pp 216220.]
58.28.400
58.28.400 Lands for school and public purposes—
Expenses as charge against fund. All school lots or parcels
of land reserved or occupied for school purposes, must be
conveyed to the school district in which such town is situated
without cost or charge of any kind whatever. All lots or parcels of land reserved or occupied for public purposes must be
set apart and dedicated to such public purposes without cost
or charge of any kind whatever. All expenses necessarily
incurred or contracted by the carrying into effect of the provisions of this chapter or said acts of congress are a charge
against the fund herein provided for. [1909 c 231 § 40; RRS
§ 11524. Prior: 1888 c 124 pp 216-220.]
58.28.410
58.28.410 Disposition of excess money—Special
fund. Any sum of money remaining in said fund after
defraying all necessary expenses of location, entry, surveying, platting, advertising, filing and recording, reimbursement of moneys loaned or advanced and paying the cost and
expenses herein authorized and provided for must be deposited in the county treasury by such judge to the credit of a special fund of each particular town, and kept separate by the
county treasurer to be paid out by him only upon the written
order of such judge in payment for making public improvements, or for public purposes, in such town. [1909 c 231 §
41; RRS § 11525. Prior: 1888 c 124 pp 216-220.]
58.28.420
58.28.420 Effect of informalities—Certificate or deed
as prima facie evidence. No mere informality, failure, or
omission on the part of any persons or officers named in this
chapter invalidates the acts of such person or officers; but
every certificate or deed granted to any person pursuant to the
provisions of this chapter is prima facie evidence that all preliminary proceedings in relation thereto have been taken and
performed and that the recitals therein are true and correct.
[1909 c 231 § 42; RRS § 11526. Prior: 1888 c 124 pp 216220.]
[Title 58 RCW—page 34]
58.28.430
58.28.430 Proof requisite to delivery of deed. No
deed to any lot in such unincorporated town or unincorporated government townsite entry shall be made or delivered
to any alleged occupant thereof before proof shall have been
made under oath, showing such claimant to have been an
occupant of such lot or parcel of land within the meaning of
said laws of congress at the time of the entry of such townsite
at the proper United States land office, but the grantees, heirs,
executors, administrators, successors in interest or assigns of
such occupant of any lot, as such, may receive such deed.
[1909 c 231 § 43; RRS § 11527. Prior: 1888 c 124 pp 216220.]
58.28.440
58.28.440 Platted lands declared dedicated to public
use. All streets, roads, lanes and alleys, public squares, cemeteries, parks, levees, school lots, and commons, surveyed,
marked and platted, on the map of any townsite, as prescribed
and directed by the provisions of this chapter, are hereby
declared to be dedicated to public use, by the filing of such
town plat in the office of the county auditor, and are inalienable, unless by special order of the board of commissioners of
the county, so long as such town shall remain unincorporated;
and if such town at any time thereafter becomes incorporated,
the same becomes the property of such town or city, and must
be under the care and subject to the control of the council or
other municipal authority of such town or city. [1909 c 231 §
44; RRS § 11528. Prior: 1888 c 124 pp 216-220.]
58.28.450
58.28.450 Clerk's duties when judge trustee. All clerical work under this chapter where a judge of the superior
court is trustee must be performed by the clerk of the superior
court. [1909 c 231 § 45; RRS § 11529. Prior: 1888 c 124 pp
216-220.]
58.28.460
58.28.460 Accounting and depositing money—
Promptness. Such judge when fulfilling the duties imposed
upon him by said acts of congress, and by this chapter, must
keep a correct account of all moneys received and paid out by
him. He must deposit all surplus money with the treasurer of
the proper county, and he must promptly settle up all the
affairs relating to his trust pertaining to such town. [1909 c
231 § 46; RRS § 11530. Prior: 1888 c 124 pp 216-220.]
58.28.470
58.28.470 Records filed with county clerk. Whenever
the affairs pertaining to such trust shall be finally settled and
disposed of by such judge, he shall deposit all books and
papers relating thereto in the office of the county clerk of the
proper county to be thereafter kept in the custody of such
county clerk as public records, and the county clerk's fee, for
the use of his county therefor, shall be the sum of ten dollars.
[1909 c 231 § 47; RRS § 11531. Prior: 1888 c 124 pp 216220.]
58.28.480
58.28.480 Judge, a trustee for purposes herein. Every
such judge when fulfilling the duties imposed upon him by
said acts of congress, and by this chapter, shall be deemed
and held to be acting as a trustee for the purposes of fulfilling
the purposes of said acts and not as a superior court, and such
judge shall be deemed to be disqualified to sit as judge of
such superior court in any action or proceeding wherein is
(2004 Ed.)
Townsites on United States Land—Acquisition of Land
involved the execution of such trust or rights involved
therein. [1909 c 231 § 48; RRS § 11532. Prior: 1888 c 124
pp 216-220.]
58.28.490
58.28.490 Appellate review—Procedure. Appellate
review of the judgment or orders of the superior court in all
cases arising under this chapter or said acts of congress may
be sought as in other civil cases. [1988 c 202 § 54; 1971 c 81
§ 127; 1909 c 231 § 49; RRS § 11533. Prior: 1888 c 124 pp
216-220.]
58.28.520
diction to hear and determine all questions arising under this
chapter and under said acts of congress and the right to ascertain who were the occupants of lots in such government
townsites at the time of the entry thereof in the United States
land office, and to determine from sworn testimony who are
and who are not entitled to deeds of conveyance to specific
lots in such government townsite, subject to review by courts
of competent jurisdiction. [1909 c 231 § 53; RRS § 11536.
Prior: 1888 c 124 pp 216-220.]
Severability—1988 c 202: See note following RCW 2.24.050.
58.28.500
58.28.500 Succession of trust. The successors in office
of such superior court judge shall be his successors as trustee
of such trust. [1909 c 231 § 51; RRS § 11534. Prior: 1888 c
124 pp 216-220.]
58.28.510
58.28.510 Title to vacated lots by occupancy and
improvements. The judge of the superior court of any
county is hereby declared to be the successor as trustee of any
territorial probate judge in such county who was trustee
under any such acts of congress, and may as such succeeding
trustee perform any unperformed duties of his predecessor in
office as such trustee, agreeably to the provisions of this
chapter as nearly as may be. And when entry was made by
any such probate judge under any of said acts of congress and
subsequent to such entry, the city or town situated upon such
townsite entry has been incorporated according to law, and
the corporate authorities thereof have or have attempted to
vacate any common, plaza, public square, public park or the
like, in such government townsite, and where thereafter, any
person, or corporation, has placed permanent improvements
on such land so vacated or attempted to be vacated, exceeding in value the sum of five thousand dollars, with the knowledge, consent, or acquiescence of the corporate authorities of
such city or town and with the general consent and approval
of the inhabitants of said city or town and such improvements
have been made for more than five years and such person or
corporation making such improvements has been in the open,
notorious and peaceable possession of such lands and premises for a period of more than five years, such superior court
judge, as trustee, of such government townsite, and successor
as trustee to such judge of probate, trustee of such government townsite, shall have the power and authority to make
and deliver to such person or corporation, or to his or its heirs,
executors, administrators, successors or assigns, a deed for
such lands and premises, conveying a fee simple title to such
lands and premises upon such terms and for such price as he
shall deem just and reasonable under all the facts and surrounding circumstances of the case, and the consideration
paid for such deed, one dollar or more, shall be placed in the
city or town treasury of such city or town, in the general fund.
[1909 c 231 § 52; RRS § 11535. Prior: 1888 c 124 pp 216220.]
58.28.520
58.28.520 Controversies, by whom settled—Review.
Except as hereinbefore specially provided, the city or town
council in incorporated cities and towns, and the judge of the
superior court, as trustee, in cases of unincorporated government townsites, are hereby expressly given power and juris(2004 Ed.)
[Title 58 RCW—page 35]
Title 59
Title 59
LANDLORD AND TENANT
Chapters
59.04 Tenancies.
59.08 Default in rent of forty dollars or less.
59.12 Forcible entry and forcible and unlawful
detainer.
59.16 Unlawful entry and detainer.
59.18 Residential Landlord-Tenant Act.
59.20 Manufactured/Mobile Home Landlord-Tenant
Act.
59.21 Mobile home relocation assistance.
59.22 Office of mobile home affairs—Resident-owned
mobile home parks.
59.23 Mobile home parks—Resident ownership in
event of sale.
59.24 Rental security deposit guarantee program.
59.28 Federally assisted housing.
Acknowledgments: Chapter 64.08 RCW.
Action to recover real property, jury trial: RCW 4.40.060.
Adverse possession: Chapter 7.28 RCW.
Boundaries and plats: Title 58 RCW.
County property, sales, leases, etc.: Chapter 36.34 RCW.
Ejectment and quieting title: Chapter 7.28 RCW.
Executions, sale of short term leasehold absolute: RCW 6.21.080.
Gambling on leased premises, action to recover: RCW 4.24.080 and
4.24.090.
Housing authorities law: Chapter 35.82 RCW.
Landlord's lien
for rent: Chapter 60.72 RCW.
on farm crops: Chapter 60.11 RCW.
Mining leases: Chapter 79.14 RCW.
Mortgages and trust receipts: Title 61 RCW.
Nuisances: Chapter 7.48 RCW.
Oil and gas leases: Chapter 79.14 RCW.
Private seals abolished: RCW 64.04.090.
Probate
generally: Title 11 RCW.
performance of decedent's contracts: Chapter 11.60 RCW.
Property insurance, insurable interest: RCW 48.18.040.
Public lands: Title 79 RCW.
Real property and conveyances: Title 64 RCW.
Recording: Chapter 65.08 RCW.
Registration of land titles: Chapter 65.12 RCW.
Statute of frauds: Chapter 19.36 RCW.
Taxation, property: Title 84 RCW.
Title insurers: Chapter 48.29 RCW.
Waste and trespass: Chapter 64.12 RCW.
Chapter 59.04
Chapter 59.04 RCW
TENANCIES
Sections
59.04.010
59.04.020
(2004 Ed.)
Tenancies from year to year abolished except under written
contract.
Tenancy from month to month—Termination.
59.04.030
59.04.040
59.04.050
59.04.900
Tenancy for specified time—Termination.
Ten day notice to pay rent or quit premises.
Tenancy by sufferance—Termination.
Chapter inapplicable to rental agreements under landlord-tenant act.
59.04.010
59.04.010 Tenancies from year to year abolished
except under written contract. Tenancies from year to year
are hereby abolished except when the same are created by
express written contract. Leases may be in writing or print, or
partly in writing and partly in print, and shall be legal and
valid for any term or period not exceeding one year, without
acknowledgment, witnesses or seals. [Code 1881 § 2053;
1867 p 101 § 1; RRS § 10619.]
59.04.020
59.04.020 Tenancy from month to month—Termination. When premises are rented for an indefinite time, with
monthly or other periodic rent reserved, such tenancy shall be
construed to be a tenancy from month to month, or from
period to period on which rent is payable, and shall be terminated by written notice of thirty days or more, preceding the
end of any of said months or periods, given by either party to
the other. [Code 1881 § 2054; 1867 p 101 § 2; RRS § 10619.
Prior: 1866 p 78 § 1.]
Unlawful detainer, notice requirement: RCW 59.12.030(2).
59.04.030
59.04.030 Tenancy for specified time—Termination.
In all cases where premises are rented for a specified time, by
express or implied contract, the tenancy shall be deemed terminated at the end of such specified time. [Code 1881 §
2055; 1867 p 101 § 3; RRS § 10620.]
59.04.040
59.04.040 Ten day notice to pay rent or quit premises. When a tenant fails to pay rent when the same is due,
and the landlord notifies him to pay said rent or quit the premises within ten days, unless the rent is paid within said ten
days, the tenancy shall be forfeited at the end of said ten days.
[Code 1881 § 2056; 1867 p 101 § 4; no RRS.]
59.04.050
59.04.050 Tenancy by sufferance—Termination.
Whenever any person obtains possession of premises without
the consent of the owner or other person having the right to
give said possession, he shall be deemed a tenant by sufferance merely, and shall be liable to pay reasonable rent for the
actual time he occupied the premises, and shall forthwith on
demand surrender his said possession to the owner or person
who had the right of possession before said entry, and all his
right to possession of said premises shall terminate immediately upon said demand. [Code 1881 § 2057; 1867 p 101 § 5;
RRS § 10621.]
59.04.900
59.04.900 Chapter inapplicable to rental agreements
under landlord-tenant act. This chapter does not apply to
[Title 59 RCW—page 1]
Chapter 59.08
Title 59 RCW: Landlord and Tenant
any rental agreement included under the provisions of chapter 59.18 RCW. [1973 1st ex.s. c 207 § 45.]
Chapter 59.08 RCW
DEFAULT IN RENT OF FORTY DOLLARS OR LESS
Chapter 59.08
Sections
59.08.010
59.08.020
59.08.030
59.08.040
59.08.050
59.08.060
59.08.070
59.08.080
59.08.090
59.08.100
59.08.900
Summons and complaint as notice—Acceptance of rent after
default.
Venue.
Complaint.
Order for hearing—Notice.
Continuance.
Hearing—Writ of restitution.
Recall of writ—Bond.
Complaint as notice to quit.
Sheriff's fee.
Indemnity bond not required—Liability for damages.
Chapter inapplicable to rental agreements under landlord-tenant act.
59.08.010
59.08.010 Summons and complaint as notice—
Acceptance of rent after default. In cases of default in the
payment of rent for real property where the stipulated rent or
rental value does not exceed forty dollars per month, no
notice to quit or pay rent, other than filing and serving a summons and complaint, as hereinafter provided, shall be
required to render the holding of such tenant thereafter
unlawful. If the landlord shall, after such default in the payment of rent, accept payment thereof, such acceptance of payment shall operate to reinstate the right of the tenant to possession for the full period fixed by the terms of any agreement relating to the right of possession. [1941 c 188 § 1;
Rem. Supp. 1941 § 814-1.]
dant applying therefor shall give good and sufficient security,
to be approved by the court, conditioned upon the payment of
rent accrued and to accrue, if judgment be rendered against
the defendant. [1941 c 188 § 5; Rem. Supp. 1941 § 814-5.]
59.08.060
59.08.060 Hearing—Writ of restitution. At the time
and place fixed for the hearing, the court shall proceed to
examine the parties orally to ascertain the merits of the complaint, and if it shall appear that there is no reasonable doubt
of the right of the plaintiff to be restored to the possession of
said property, the court shall enter an order directing the issuance of a writ of restitution, which shall thereupon be served
by the sheriff upon the defendant. After the expiration of
three days from date of service, if the defendant has not surrendered possession or filed a bond as hereinafter provided,
the writ shall be executed by the sheriff. If it appears to the
court that there is reasonable doubt of the right of the plaintiff
to be restored to the possession of said property, the court
shall enter an order requiring the parties to proceed on the
complaint filed in the usual form of action. [1941 c 188 § 6;
Rem. Supp. 1941 § 814-6.]
59.08.070
59.08.070 Recall of writ—Bond. If the defendant feels
aggrieved at an order of restitution, he may within three days
after the entry of the order file a bond to be approved by the
court in double the amount of the rent found to be due, plus
two hundred dollars, conditioned for the payment and performance of any judgment rendered against him, and the court
shall thereupon enter an order for the parties to proceed in the
usual form of action, and recall the writ of restitution. [1941
c 188 § 7; Rem. Supp. 1941 § 814-7.]
59.08.020
59.08.020 Venue. The superior court of the county in
which the real property or some part thereof is situated shall
have jurisdiction of proceedings for the recovery of possession of said real property alleged to be wrongfully detained.
[1941 c 188 § 2; Rem. Supp. 1941 § 814-2.]
59.08.080
59.08.080 Complaint as notice to quit. The filing and
service of a complaint under this chapter shall be equivalent
to the notice required to pay rent or surrender possession
under RCW 59.12.030. [1941 c 188 § 8; Rem. Supp. 1941 §
814-8.]
59.08.030
59.08.030 Complaint. Such proceedings shall be commenced by the filing of a complaint executed under oath by
the owner or landlord or his authorized agent. It shall be sufficient to state in such complaint a description of the property
with reasonable certainty, that the defendant is in possession
thereof and wrongfully holds the same by reason of failure to
pay the agreed rental due, or the monthly rental value of the
premises. [1941 c 188 § 3; Rem. Supp. 1941 § 814-3.]
59.08.090
59.08.090 Sheriff's fee. The sheriff's fee shall be the
same as in other civil actions. [1961 c 304 § 7; 1941 c 188 §
9; Rem. Supp. 1941 § 814-9.]
County clerk's fees: RCW 36.18.020.
Sheriff's fees: RCW 36.18.040.
59.08.100
59.08.040
59.08.040 Order for hearing—Notice. Upon the filing
of such complaint it may be presented to the judge, and by
order he shall forthwith fix a place and time for the trial of
said cause, not more than ten days after the date of making
the order. A copy of the complaint, together with a copy of
the summons specifying the time and place for trial, shall be
served on the defendant not less than five days prior to the
time fixed for hearing in the manner provided for the service
of notice to quit in RCW 59.12.040. [1941 c 188 § 4; Rem.
Supp. 1941 § 814-4.]
59.08.050
59.08.050 Continuance. No continuance shall be
granted for a longer period than two days unless the defen[Title 59 RCW—page 2]
59.08.100 Indemnity bond not required—Liability
for damages. The plaintiff shall not be required to give bond
to the defendant or the sheriff for the issuance or execution of
the writ of restitution, and the sheriff shall not be liable for
damages to the defendant for the execution of the writ of restitution hereunder, but any such damage to which the defendant may be entitled shall be recoverable against the plaintiff
only. [1941 c 188 § 10; Rem. Supp. 1941 § 814-10.]
59.08.900
59.08.900 Chapter inapplicable to rental agreements
under landlord-tenant act. This chapter does not apply to
any rental agreement included under the provisions of chapter 59.18 RCW. [1973 1st ex.s. c 207 § 46.]
(2004 Ed.)
Forcible Entry and Forcible and Unlawful Detainer
Chapter 59.12 RCW
FORCIBLE ENTRY AND FORCIBLE AND
UNLAWFUL DETAINER
Chapter 59.12
Sections
59.12.010
59.12.020
59.12.030
59.12.035
59.12.040
59.12.050
59.12.060
59.12.070
59.12.080
59.12.090
59.12.091
59.12.100
59.12.110
59.12.120
59.12.121
59.12.130
59.12.140
59.12.150
59.12.160
59.12.170
59.12.180
59.12.190
59.12.200
59.12.210
59.12.220
59.12.230
Forcible entry defined.
Forcible detainer defined.
Unlawful detainer defined.
Holding over on agricultural land, effect of.
Service of notice—Proof of service.
Jurisdiction of proceedings.
Parties defendant.
Complaint—Summons.
Summons—Contents—Service.
Writ of restitution—Bond.
Writ of restitution under landlord-tenant act—RCW
59.12.090, 59.12.100, 59.12.121, and 59.12.170 inapplicable.
Service of writ—Bond to stay writ.
Modification of bond.
Judgment by default.
Pleading by defendant.
Jury—Actions given preference.
Proof in forcible entry and detainer.
Amendment to conform to proof.
Amendments.
Judgment—Execution.
Rules of practice.
Relief against forfeiture.
Appellate review—Stay bond.
Effect of stay bond.
Writ of restitution suspended pending appeal.
Forcible entry and detainer—Penalty.
Joint tenancies: Chapter 64.28 RCW.
Tenant's violation of duty under landlord-tenant act grounds for unlawful
detainer action: RCW 59.18.180.
59.12.010
59.12.010 Forcible entry defined. Every person is
guilty of a forcible entry who either—(1) By breaking open
windows, doors or other parts of a house, or by fraud, intimidation or stealth, or by any kind of violence or circumstance
of terror, enters upon or into any real property; or—(2) Who,
after entering peaceably upon real property, turns out by
force, threats or menacing conduct the party in actual possession. [1891 c 96 § 1; RRS § 810. Prior: 1890 p 73 § 1.]
59.12.020
59.12.020 Forcible detainer defined. Every person is
guilty of a forcible detainer who either—(1) By force, or by
menaces and threats of violence, unlawfully holds and keeps
the possession of any real property, whether the same was
acquired peaceably or otherwise; or—(2) Who in the nighttime, or during the absence of the occupant of any real property, enters thereon, and who, after demand made for the surrender thereof, refuses for the period of three days to surrender the same to such former occupant. The occupant of real
property within the meaning of this subdivision is one who
for the five days next preceding such unlawful entry was in
the peaceable and undisturbed possession of such real property. [1891 c 96 § 2; RRS § 811. Prior: 1890 p 73 § 2.]
59.12.030
59.12.030 Unlawful detainer defined. A tenant of real
property for a term less than life is guilty of unlawful detainer
either:
(1) When he or she holds over or continues in possession, in person or by subtenant, of the property or any part
thereof after the expiration of the term for which it is let to
him or her. When real property is leased for a specified term
or period by express or implied contract, whether written or
(2004 Ed.)
59.12.035
oral, the tenancy shall be terminated without notice at the
expiration of the specified term or period;
(2) When he or she, having leased property for an indefinite time with monthly or other periodic rent reserved, continues in possession thereof, in person or by subtenant, after
the end of any such month or period, when the landlord, more
than twenty days prior to the end of such month or period, has
served notice (in manner in RCW 59.12.040 provided)
requiring him or her to quit the premises at the expiration of
such month or period;
(3) When he or she continues in possession in person or
by subtenant after a default in the payment of rent, and after
notice in writing requiring in the alternative the payment of
the rent or the surrender of the detained premises, served (in
manner in RCW 59.12.040 provided) in behalf of the person
entitled to the rent upon the person owing it, has remained
uncomplied with for the period of three days after service
thereof. The notice may be served at any time after the rent
becomes due;
(4) When he or she continues in possession in person or
by subtenant after a neglect or failure to keep or perform any
other condition or covenant of the lease or agreement under
which the property is held, including any covenant not to
assign or sublet, than one for the payment of rent, and after
notice in writing requiring in the alternative the performance
of such condition or covenant or the surrender of the property, served (in manner in RCW 59.12.040 provided) upon
him or her, and if there is a subtenant in actual possession of
the premises, also upon such subtenant, shall remain uncomplied with for ten days after service thereof. Within ten days
after the service of such notice the tenant, or any subtenant in
actual occupation of the premises, or any mortgagee of the
term, or other person interested in its continuance, may perform such condition or covenant and thereby save the lease
from such forfeiture;
(5) When he or she commits or permits waste upon the
demised premises, or when he or she sets up or carries on
thereon any unlawful business, or when he or she erects, suffers, permits, or maintains on or about the premises any nuisance, and remains in possession after the service (in manner
in RCW 59.12.040 provided) upon him or her of three days'
notice to quit;
(6) A person who, without the permission of the owner
and without having color of title thereto, enters upon land of
another and who fails or refuses to remove therefrom after
three days' notice, in writing and served upon him or her in
the manner provided in RCW 59.12.040. Such person may
also be subject to the criminal provisions of chapter 9A.52
RCW; or
(7) When he or she commits or permits any gang-related
activity at the premises as prohibited by RCW 59.18.130.
[1998 c 276 § 6; 1983 c 264 § 1; 1953 c 106 § 1. Prior: 1905
c 86 § 1; 1891 c 96 § 3; 1890 p 73 § 3; RRS § 812.]
Termination of month to month tenancy: RCW 59.04.020, 59.18.200.
Unlawful detainer defined: RCW 59.16.010.
59.12.035
59.12.035 Holding over on agricultural land, effect
of. In all cases of tenancy upon agricultural lands, where the
tenant has held over and retained possession for more than
sixty days after the expiration of his term without any
[Title 59 RCW—page 3]
59.12.040
Title 59 RCW: Landlord and Tenant
demand or notice to quit by his landlord or the successor in
estate of his landlord, if any there be, he shall be deemed to
be holding by permission of his landlord or the successor in
estate of his landlord, if any there be, and shall be entitled to
hold under the terms of the lease for another full year, and
shall not be guilty of an unlawful detainer during said year,
and such holding over for the period aforesaid shall be taken
and construed as a consent on the part of a tenant to hold for
another year. [1891 c 96 § 4; RRS § 813. Formerly RCW
59.04.060.]
59.12.040
59.12.040 Service of notice—Proof of service. Any
notice provided for in this chapter shall be served either (1)
by delivering a copy personally to the person entitled thereto;
or (2) if he be absent from the premises unlawfully held, by
leaving there a copy, with some person of suitable age and
discretion, and sending a copy through the mail addressed to
the person entitled thereto at his place of residence; or (3) if
the person to be notified be a tenant, or an unlawful holder of
premises, and his place of residence is not known, or if a person of suitable age and discretion there cannot be found then
by affixing a copy of the notice in a conspicuous place on the
premises unlawfully held, and also delivering a copy to a person there residing, if such a person can be found, and also
sending a copy through the mail addressed to the tenant, or
unlawful occupant, at the place where the premises unlawfully held are situated. Service upon a subtenant may be made
in the same manner: PROVIDED, That in cases where the
tenant or unlawful occupant, shall be conducting a hotel, inn,
lodging house, boarding house, or shall be renting rooms
while still retaining control of the premises as a whole, that
the guests, lodgers, boarders or persons renting such rooms
shall not be considered as subtenants within the meaning of
this chapter, but all such persons may be served by affixing a
copy of the notice to be served in two conspicuous places
upon the premises unlawfully held; and such persons shall
not be necessary parties defendant in an action to recover
possession of said premises. Service of any notice provided
for in this chapter may be had upon a corporation by delivering a copy thereof to any officer, agent or person having
charge of the business of such corporation, at the premises
unlawfully held, and in case no such officer, agent or person
can be found upon such premises, then service may be had by
affixing a copy of such notice in a conspicuous place upon
said premises and by sending a copy through the mail
addressed to such corporation at the place where said premises are situated. Proof of any service under this section
may be made by the affidavit of the person making the same
in like manner and with like effect as the proof of service of
summons in civil actions. When a copy of notice is sent
through the mail, as provided in this section, service shall be
deemed complete when such copy is deposited in the United
States mail in the county in which the property is situated
properly addressed with postage prepaid: PROVIDED,
HOWEVER, That when service is made by mail one additional day shall be allowed before the commencement of an
action based upon such notice. RCW 59.18.375 may also
apply to notice given under this chapter. [1983 c 264 § 2;
1911 c 26 § 1; 1905 c 86 § 2; 1891 c 96 § 5; RRS § 814. Prior:
1890 p 75 § 4.]
[Title 59 RCW—page 4]
59.12.050
59.12.050 Jurisdiction of proceedings. The superior
court of the county in which the property or some part of it is
situated shall have jurisdiction of proceedings under this
chapter. [1891 c 96 § 6; RRS § 815. Prior: 1890 p 75 § 5.]
Venue and jurisdiction, generally: RCW 2.08.010 and chapter 4.12 RCW.
59.12.060
59.12.060 Parties defendant. No person other than the
tenant of the premises, and subtenant, if there be one, in the
actual occupation of the premises when the complaint is filed,
need be made parties defendant in any proceeding under this
chapter, nor shall any proceeding abate, nor the plaintiff be
nonsuited, for the nonjoinder of any person who might have
been made party defendant; but when it appears that any of
the parties served with process, or appearing in the proceeding, are guilty of the offense charged, judgment must be rendered against him. In case a person has become a subtenant of
the premises in controversy after the service of any notice in
this chapter provided for, the fact that such notice was not
served on such subtenant shall constitute no defense to the
action. All persons who enter the premises under the tenant,
after the commencement of the action hereunder, shall be
bound by the judgment the same as if they had been made
parties to the action. [1891 c 96 § 7; RRS § 816. Prior: 1890
p 75 § 6.]
59.12.070
59.12.070 Complaint—Summons. The plaintiff in his
complaint, which shall be in writing, must set forth the facts
on which he seeks to recover, and describe the premises with
reasonable certainty, and may set forth therein any circumstances of fraud, force or violence, which may have accompanied the said forcible entry or forcible or unlawful detainer,
and claim damages therefor, or compensation for the occupation of the premises, or both; in case the unlawful detainer
charged be after default in the payment of rent, the complaint
must state the amount of such rent. A summons must be
issued as in other cases, returnable at a day designated
therein, which shall not be less than six nor more than twelve
days from the date of service, except in cases where the publication of summons is necessary, in which case the court or
judge thereof may order that the summons be made returnable at such time as may be deemed proper, and the summons
shall specify the return day so fixed. [1927 c 123 § 1; 1891 c
96 § 8; RRS § 817. Prior: 1890 p 75 § 7.]
59.12.080
59.12.080 Summons—Contents—Service. The summons must state the names of the parties to the proceeding,
the court in which the same is brought, the nature of the
action, in concise terms, and the relief sought, and also the
return day; and must notify the defendant to appear and
answer within the time designated or that the relief sought
will be taken against him. The summons must be directed to
the defendant, and in case of summons by publication, be
served at least five days before the return day designated
therein. The summons must be served and returned in the
same manner as summons in other actions is served and
returned. [1927 c 123 § 2; 1891 c 96 § 9; RRS § 818. Prior:
1890 p 76 § 8.]
Summons, generally: RCW 4.28.080 through 4.28.110.
(2004 Ed.)
Forcible Entry and Forcible and Unlawful Detainer
59.12.090 Writ of restitution—Bond. The plaintiff at
the time of commencing an action of forcible entry or
detainer or unlawful detainer, or at any time afterwards, may
apply to the judge of the court in which the action is pending
for a writ of restitution restoring to the plaintiff the property
in the complaint described, and the judge shall order a writ of
restitution to issue. The writ shall be issued by the clerk of the
superior court in which the action is pending, and be returnable in twenty days after its date; but before any writ shall
issue prior to judgment the plaintiff shall execute to the
defendant and file in court a bond in such sum as the court or
judge may order, with sufficient surety to be approved by the
clerk, conditioned that the plaintiff will prosecute his action
without delay, and will pay all costs that may be adjudged to
the defendant, and all damages which he may sustain by reason of the writ of restitution having been issued, should the
same be wrongfully sued out. [1927 c 123 § 3; 1891 c 96 §
10; RRS § 819. Prior: 1890 p 77 § 9.]
59.12.090
59.12.150
application shall make such an order as shall be just in the
premises. The bondsmen may be required to be present at
such hearing if so required in the notice thereof, and shall
answer under oath all questions that may be asked them
touching their qualifications as bondsmen, and in the event
the bondsmen shall fail or refuse to appear at such hearing
and so answer such questions the bond shall be stricken. In
the event the court shall order a new or additional bond to be
furnished by defendant, and the same shall not be given
within twenty-four hours, the court shall order the sheriff to
forthwith execute the writ. In the event the defendant shall
file a second or additional bond and it shall also be found
insufficient after hearing, as above provided, the right to
retain the premises by bond shall be lost and the sheriff shall
forthwith put the plaintiff in possession of the premises.
[1905 c 86 § 4; 1891 c 96 § 12; RRS § 821. Prior: 1890 p 78
§ 11.]
59.12.120
59.12.091 Writ of restitution under landlord-tenant
act—RCW 59.12.090, 59.12.100, 59.12.121, and 59.12.170
inapplicable. See RCW 59.18.420.
59.12.091
59.12.100 Service of writ—Bond to stay writ. The
sheriff shall, upon receiving the writ of restitution, forthwith
serve a copy thereof upon the defendant, his agent or attorney, or a person in possession of the premises, and shall not
execute the same for three days thereafter, nor until after the
defendant has been served with summons in the action as
hereinabove provided, and the defendant, or person in possession of the premises within three days after the service of
the writ of restitution may execute to the plaintiff a bond to be
filed with and approved by the clerk of the court in such sum
as may be fixed by the judge, with sufficient surety to be
approved by the clerk of said court, conditioned that they will
pay to the plaintiff such sum as the plaintiff may recover for
the use and occupation of the said premises, or any rent found
due, together with all damages the plaintiff may sustain by
reason of the defendant occupying or keeping possession of
said premises, and also all the costs of the action. The plaintiff, his agent or attorneys, shall have notice of the time and
place where the court or judge thereof shall fix the amount of
the defendant's bond, and shall have notice and a reasonable
opportunity to examine into the qualification and sufficiency
of the sureties upon said bond before said bond shall be
approved by the clerk. The writ may be served by the sheriff,
in the event he shall be unable to find the defendant, an agent
or attorney, or a person in possession of the premises, by
affixing a copy of said writ in a conspicuous place upon the
premises. [1927 c 123 § 4; 1905 c 86 § 3; 1891 c 96 § 11;
RRS § 820. Prior: 1890 p 77 § 10.]
59.12.100
59.12.120 Judgment by default. If on the date
appointed in the summons the defendant does not appear or
answer, the court shall render judgment in favor of the plaintiff as prayed for in the complaint. [1989 c 342 § 2; 1891 c 96
§ 13; RRS § 822. FORMER PART OF SECTION: 1891 c 96
§ 14 now codified as RCW 59.12.121.]
Severability—Effective date—1989 c 342: See RCW 59.18.910 and
59.18.911.
59.12.121
59.12.121 Pleading by defendant. On or before the
day fixed for his appearance the defendant may appear and
answer or demur. [1891 c 96 § 14; RRS § 823. Formerly
RCW 59.12.120, part.]
59.12.130
59.12.130 Jury—Actions given preference. Whenever an issue of fact is presented by the pleadings it must be
tried by a jury, unless such a jury be waived as in other cases.
The jury shall be formed in the same manner as other trial
juries in the court in which the action is pending; and in all
cases actions under this chapter shall take precedence of all
other civil actions. [1891 c 96 § 15; RRS § 824. Prior: 1890
p 79 § 15.]
59.12.140
59.12.140 Proof in forcible entry and detainer. On
the trial of any proceeding for any forcible entry or forcible
detainer the plaintiff shall only be required to show, in addition to a forcible entry complained of, that he was peaceably
in the actual possession at the time of the forcible entry; or, in
addition to a forcible detainer complained of, that he was
entitled to the possession at the time of the forcible detainer.
[1891 c 96 § 16; RRS § 825. Prior: 1890 p 79 § 16.]
59.12.150
59.12.110 Modification of bond. The plaintiff or
defendant at any time, upon two days' notice to the adverse
party, may apply to the court or any judge thereof for an order
raising or lowering the amount of any bond in this chapter
provided for. Either party may, upon like notice, apply to the
court or any judge thereof for an order requiring additional or
other surety or sureties upon any such bond. Upon the hearing or any application made under the provisions of this section evidence may be given. The judge after hearing any such
59.12.110
(2004 Ed.)
59.12.150 Amendment to conform to proof. When
upon the trial of any proceeding under this chapter it appears
from the evidence that the defendant has been guilty of either
a forcible entry or a forcible or unlawful detainer, in respect
of the premises described in the complaint, and other than the
offense charged in the complaint, the judge must order that
such complaint be forthwith amended to conform to such
proofs; such amendment must be made without any imposition of terms. No continuance shall be permitted on account
of such amendment unless the defendant shows to the satis[Title 59 RCW—page 5]
59.12.160
Title 59 RCW: Landlord and Tenant
faction of the court good cause therefor. [1891 c 96 § 17;
RRS § 826. Prior: 1890 p 79 § 17.]
59.12.160
59.12.160 Amendments. Amendments may be allowed
by the court at any time before final judgment, upon such
terms as to the court may appear just, in the same cases and
manner and to the same extent as in civil actions. [1891 c 96
§ 19; RRS § 828. Prior: 1890 p 80 § 20.]
59.12.170
59.12.170 Judgment—Execution. If upon the trial the
verdict of the jury or, if the case be tried without a jury, the
finding of the court be in favor of the plaintiff and against the
defendant, judgment shall be entered for the restitution of the
premises; and if the proceeding be for unlawful detainer after
neglect or failure to perform any condition or covenant of a
lease or agreement under which the property is held, or after
default in the payment of rent, the judgment shall also declare
the forfeiture of the lease, agreement or tenancy. The jury, or
the court, if the proceedings be tried without a jury, shall also
assess the damages occasioned to the plaintiff by any forcible
entry, or by any forcible or unlawful detainer, alleged in the
complaint and proved on the trial, and, if the alleged unlawful
detainer be after default in the payment of rent, find the
amount of any rent due, and the judgment shall be rendered
against the defendant guilty of the forcible entry, forcible
detainer or unlawful detainer for twice the amount of damages thus assessed and of the rent, if any, found due. When
the proceeding is for an unlawful detainer after default in the
payment of rent, and the lease or agreement under which the
rent is payable has not by its terms expired, execution upon
the judgment shall not be issued until the expiration of five
days after the entry of the judgment, within which time the
tenant or any subtenant, or any mortgagee of the term, or
other party interested in its continuance, may pay into court
for the landlord the amount of the judgment and costs, and
thereupon the judgment shall be satisfied and the tenant
restored to his estate; but if payment, as herein provided, be
not made within five days the judgment may be enforced for
its full amount and for the possession of the premises. In all
other cases the judgment may be enforced immediately. If
writ of restitution shall have been executed prior to judgment
no further writ or execution for the premises shall be
required. [1891 c 96 § 18; RRS § 827. Prior: 1890 p 80 § 18.]
59.12.180
59.12.180 Rules of practice. Except as otherwise provided in this chapter, the provisions of the laws of this state
with reference to practice in civil actions are applicable to,
and constitute the rules of practice in the proceedings mentioned in this chapter; and the provisions of such laws relative
to new trials and appeals, except so far as they are inconsistent with the provisions of this chapter, shall be held to apply
to the proceedings mentioned in this chapter. [1891 c 96 §
20; RRS § 829. Prior: 1890 p 80 § 21.]
59.12.190
59.12.190 Relief against forfeiture. The court may
relieve a tenant against a forfeiture of a lease and restore him
to his former estate, as in other cases provided by law, where
application for such relief is made within thirty days after the
forfeiture is declared by the judgment of the court, as provided in this chapter. The application may be made by a ten[Title 59 RCW—page 6]
ant or subtenant, or a mortgagee of the term, or any person
interested in the continuance of the term. It must be made
upon petition, setting forth the facts upon which the relief is
sought, and be verified by the applicant. Notice of the application, with a copy of the petition, must be served on the
plaintiff in the judgment, who may appear and contest the
application. In no case shall the application be granted except
on condition that full payment of rent due, or full performance of conditions of covenants stipulated, so far as the
same is practicable, be first made. [1891 c 96 § 21; RRS §
830. Prior: 1890 p 80 § 22.]
59.12.200
59.12.200 Appellate review—Stay bond. A party
aggrieved by the judgment may seek appellate review of the
judgment as in other civil actions: PROVIDED, That if the
defendant appealing desires a stay of proceedings pending
review, the defendant shall execute and file a bond, with two
or more sufficient sureties to be approved by the judge, conditioned to abide the order of the court, and to pay all rents
and other damages justly accruing to the plaintiff during the
pendency of the proceeding. [1988 c 202 § 55; 1971 c 81 §
128; 1891 c 96 § 22; RRS § 831. Prior: 1890 p 80 § 23.]
Severability—1988 c 202: See note following RCW 2.24.050.
59.12.210
59.12.210 Effect of stay bond. When the defendant
shall appeal, and shall file a bond as provided in RCW
59.12.200, all further proceedings in the case shall be stayed
until the determination of said appeal and the same has been
remanded to the superior court for further proceedings
therein. [1891 c 96 § 23; RRS § 832. Prior: 1890 p 80 § 24.]
59.12.220
59.12.220 Writ of restitution suspended pending
appeal. If a writ of restitution has been issued previous to the
taking of an appeal by the defendant, and said defendant shall
execute and file a bond as provided in this chapter, the clerk
of the court, under the direction of the judge, shall forthwith
give the appellant a certificate of the allowance of such
appeal; and upon the service of such certificate upon the
officer having such writ of restitution the said officer shall
forthwith cease all further proceedings by virtue of such writ;
and if such writ has been completely executed the defendant
shall be restored to the possession of the premises, and shall
remain in possession thereof until the appeal is determined.
[1891 c 96 § 24; RRS § 833. Prior: 1890 p 81 § 25.]
59.12.230
59.12.230 Forcible entry and detainer—Penalty.
Every person who shall unlawfully use, or encourage or assist
another in unlawfully using, any force or violence in entering
upon or detaining any lands or other possessions of another;
and every person who, having removed or been removed
therefrom pursuant to the order or direction of any court, tribunal or officer, shall afterwards return to settle or reside
unlawfully upon, or take possession of, such lands or possessions, shall be guilty of a misdemeanor. [1909 c 249 § 306;
RRS § 2558. Prior: Code 1881 § 858; 1873 p 195 § 66; 1854
p 86 § 60.]
(2004 Ed.)
Unlawful Entry and Detainer
Chapter 59.16
Chapter 59.16 RCW
UNLAWFUL ENTRY AND DETAINER
Sections
59.16.010
59.16.020
59.16.030
59.16.040
Unlawful detainer defined.
Pleadings, requirements.
Issues—Trial.
Parties defendant—Trial of separate issues.
59.18.030
59.18.040
59.18.050
59.18.055
59.18.060
59.18.063
59.18.070
59.18.075
59.18.080
59.16.010
59.16.010 Unlawful detainer defined. That any person
who shall, without the permission of the owner and without
having any color of title thereto, enter upon the lands of
another, and shall refuse to remove therefrom after three
days' notice, shall be deemed guilty of unlawful detainer and
may be removed from such lands. [1891 c 115 § 1; RRS §
834.]
59.18.085
59.18.090
59.18.100
59.18.110
Unlawful detainer defined: RCW 59.12.030.
59.18.115
59.16.020
59.16.020 Pleadings, requirements. The complaint in
all cases under the provisions of this chapter shall be upon
oath, and then [there] shall be embodied therein or amended
thereto an abstract of the plaintiff's title, and the defendant
shall, in his answer, state whether he makes any claim of title
to the lands described in the complaint, and if he makes no
claim to the legal title but does claim a right to the possession
of such lands, he shall state upon what grounds he claims a
right to such possession. [1891 c 115 § 2; RRS § 835.]
59.16.030 Issues—Trial. It shall not be necessary for
the plaintiff, in proceedings under this chapter, to allege or
prove that the said lands were, at any time, actually occupied
prior to the defendant's entry thereupon, but it shall be sufficient to allege that he is the legal owner and entitled to the
immediate possession thereof: PROVIDED, That if the
defendant shall, by his answer, deny such ownership and
shall state facts showing that he has a lawful claim to the possession thereof, the cause shall thereupon be entered for trial
upon the docket of the court in all respects as if the action
were brought under the provisions of *chapter XLVI of the
code of eighteen hundred and eighty-one. [1891 c 115 § 3;
RRS § 836.]
59.16.030
*Reviser's note: "chapter XLVI of the code of eighteen hundred and
eighty-one" is codified as RCW 7.28.010, 7.28.110 through 7.28.150, and
7.28.190 through 7.28.270.
59.18.120
59.18.130
59.18.140
59.18.150
59.18.160
59.18.170
59.18.180
59.18.190
59.18.200
59.18.210
59.18.220
59.18.230
59.18.240
59.18.250
59.18.253
59.18.257
59.18.260
59.18.270
59.18.280
59.16.040
59.16.040 Parties defendant—Trial of separate
issues. All persons in actual possession of any portion of the
several subdivisions of any section of land, according to the
government surveys thereof, may be made defendants in one
action: PROVIDED, That they may, in their discretion, make
separate answers to the complaint, and if separate issues are
joined thereupon, the same shall nevertheless be tried as one
action, but the verdict, if tried by jury, shall find separately
upon the issues so joined, and judgment shall be rendered
according thereto. [1891 c 115 § 4; RRS § 837.]
Chapter 59.18 RCW
RESIDENTIAL LANDLORD-TENANT ACT
Chapter 59.18
(2004 Ed.)
59.18.290
59.18.300
59.18.310
59.18.312
59.18.315
59.18.320
59.18.330
59.18.340
59.18.350
59.18.352
59.18.354
Sections
59.18.010
59.18.020
59.18.285
Short title.
Rights and remedies—Obligation of good faith imposed.
59.18.360
59.18.365
Chapter 59.18
Definitions.
Living arrangements exempted from chapter.
Jurisdiction of district and superior courts.
Notice—Alternative procedure—Court's jurisdiction limited—Application to chapter 59.20 RCW.
Landlord—Duties.
Landlord—Provide written receipt upon request.
Landlord—Failure to perform duties—Notice from tenant—
Contents—Time limits for landlord's remedial action.
Seizure of illegal drugs—Notification of landlord.
Payment of rent condition to exercising remedies—Exceptions.
Rental of condemned or unlawful dwelling—Tenant's remedies.
Landlord's failure to remedy defective condition—Tenant's
choice of actions.
Landlord's failure to carry out duties—Repairs effected by tenant—Procedure—Deduction of cost from rent—Limitations.
Failure of landlord to carry out duties—Determination by
court or arbitrator—Judgment against landlord for diminished rental value and repair costs—Enforcement of judgment—Reduction in rent under certain conditions.
Substandard and dangerous conditions—Notice to landlord—
Government certification—Escrow account.
Defective condition—Unfeasible to remedy defect—Termination of tenancy.
Duties of tenant.
Reasonable obligations or restrictions—Tenant's duty to conform.
Landlord's right of entry—Purposes—Searches by fire officials—Conditions.
Landlord's remedies if tenant fails to remedy defective condition.
Landlord to give notice if tenant fails to carry out duties.
Tenant's failure to comply with statutory duties—Landlord to
give tenant written notice of noncompliance—Landlord's
remedies.
Notice to tenant to remedy nonconformance.
Tenancy from month to month or for rental period—Termination—Armed Forces exception—Exclusion of children or
conversion to condominium—Notice.
Tenancies from year to year except under written contract.
Termination of tenancy for a specified time—Armed forces
exception.
Waiver of chapter provisions prohibited—Provisions prohibited from rental agreement—Distress for rent abolished—
Detention of personal property for rent—Remedies.
Reprisals or retaliatory actions by landlord—Prohibited.
Reprisals or retaliatory actions by landlord—Presumptions—
Rebuttal—Costs.
Deposit to secure occupancy by tenant—Landlord's duties—
Violation.
Screening of tenants—Costs—Notice to tenant—Violation.
Moneys paid as deposit or security for performance by tenant—Written rental agreement to specify terms and conditions for retention by landlord—Written checklist required.
Moneys paid as deposit or security for performance by tenant—Deposit by landlord in trust account—Receipt—
Claims.
Moneys paid as deposit or security for performance by tenant—Statement and notice of basis for retention—Remedies
for landlord's failure to make refund.
Nonrefundable fees not to be designated as deposit—Written
rental agreement required.
Removal or exclusion of tenant from premises—Holding over
or excluding landlord from premises after termination date.
Termination of tenant's utility services—Tenant causing loss
of landlord provided utility services.
Default in rent—Abandonment—Liability of tenant—Landlord's remedies—Sale of tenant's property by landlord.
Writ of restitution—Storage and sale of tenant's property—
Use of proceeds from sale.
Mediation of disputes by independent third party.
Arbitration—Authorized—Exceptions—Notice—Procedure.
Arbitration—Application—Hearings—Decisions.
Arbitration—Fee.
Arbitration—Completion of arbitration after giving notice.
Threatening behavior by tenant—Termination of agreement—
Written notice—Financial obligations.
Threatening behavior by landlord—Termination of agreement—Financial obligations.
Exemptions.
Unlawful detainer action—Summons—Form.
[Title 59 RCW—page 7]
59.18.010
59.18.370
59.18.375
59.18.380
59.18.390
59.18.400
59.18.410
59.18.415
59.18.420
59.18.430
59.18.440
59.18.450
59.18.500
59.18.510
59.18.550
59.18.570
59.18.575
59.18.580
59.18.585
59.18.900
59.18.910
59.18.911
Title 59 RCW: Landlord and Tenant
Forcible entry or detainer or unlawful detainer actions—Writ
of restitution—Application—Order—Hearing.
Forcible entry or detainer or unlawful detainer actions—Payment of rent into court registry—Writ of restitution—Notice.
Forcible entry or detainer or unlawful detainer actions—Writ
of restitution—Answer—Order—Stay—Bond.
Forcible entry or detainer or unlawful detainer actions—Writ
of restitution—Service—Defendant's bond.
Forcible entry or detainer or unlawful detainer actions—Writ
of restitution—Answer of defendant.
Forcible entry or detainer or unlawful detainer actions—Writ
of restitution—Judgment—Execution.
Applicability to certain single family dwelling leases.
RCW 59.12.090, 59.12.100, 59.12.121, and 59.12.170 inapplicable.
Applicability to prior, existing or future leases.
Relocation assistance for low-income tenants—Certain cities,
towns, counties, municipal corporations authorized to
require.
Relocation assistance for low-income tenants—Payments not
considered income—Eligibility for other assistance not
affected.
Gang-related activity—Legislative findings, declarations, and
intent.
Gang-related activity—Notice and demand the landlord commence unlawful detainer action—Petition to court—Attorneys' fees.
Drug and alcohol free housing—Program of recovery—
Terms—Application of chapter.
Victim protection—Definitions.
Victim protection—Notice to landlord—Termination of rental
agreement—Procedures.
Victim protection—Limitation on landlord's rental decisions.
Victim protection—Possession of dwelling unit—Exclusion
of others—New lock or key.
Severability—1973 1st ex.s. c 207.
Severability—1989 c 342.
Effective date—1989 c 342.
Reviser's note: This chapter was revised pursuant to Washington Ass'n.
of Apartment Ass'ns., Inc. vs. Evans, 88 Wn. 2d. 563 (1977), which declared
invalid the fourteen item and section vetoes to 1973 Engrossed Substitute
Senate Bill No. 2226 (1973 1st ex.s. c 207).
Smoke detection devices in dwelling units required: RCW 48.48.140.
59.18.010
59.18.010 Short title. RCW 59.18.010 through
59.18.420 and 59.18.900 shall be known and may be cited as
the "Residential Landlord-Tenant Act of 1973", and shall
constitute a new chapter in Title 59 RCW. [1973 1st ex.s. c
207 § 1.]
59.18.020
59.18.020 Rights and remedies—Obligation of good
faith imposed. Every duty under this chapter and every act
which must be performed as a condition precedent to the
exercise of a right or remedy under this chapter imposes an
obligation of good faith in its performance or enforcement.
[1973 1st ex.s. c 207 § 2.]
59.18.030
59.18.030 Definitions. As used in this chapter:
(1) "Dwelling unit" is a structure or that part of a structure which is used as a home, residence, or sleeping place by
one person or by two or more persons maintaining a common
household, including but not limited to single family residences and units of multiplexes, apartment buildings, and
mobile homes.
(2) "Landlord" means the owner, lessor, or sublessor of
the dwelling unit or the property of which it is a part, and in
addition means any person designated as representative of the
landlord.
(3) "Person" means an individual, group of individuals,
corporation, government, or governmental agency, business
trust, estate, trust, partnership, or association, two or more
[Title 59 RCW—page 8]
persons having a joint or common interest, or any other legal
or commercial entity.
(4) "Owner" means one or more persons, jointly or severally, in whom is vested:
(a) All or any part of the legal title to property; or
(b) All or part of the beneficial ownership, and a right to
present use and enjoyment of the property.
(5) "Premises" means a dwelling unit, appurtenances
thereto, grounds, and facilities held out for the use of tenants
generally and any other area or facility which is held out for
use by the tenant.
(6) "Rental agreement" means all agreements which
establish or modify the terms, conditions, rules, regulations,
or any other provisions concerning the use and occupancy of
a dwelling unit.
(7) A "single family residence" is a structure maintained
and used as a single dwelling unit. Notwithstanding that a
dwelling unit shares one or more walls with another dwelling
unit, it shall be deemed a single family residence if it has
direct access to a street and shares neither heating facilities
nor hot water equipment, nor any other essential facility or
service, with any other dwelling unit.
(8) A "tenant" is any person who is entitled to occupy a
dwelling unit primarily for living or dwelling purposes under
a rental agreement.
(9) "Reasonable attorney's fees", where authorized in
this chapter, means an amount to be determined including the
following factors: The time and labor required, the novelty
and difficulty of the questions involved, the skill requisite to
perform the legal service properly, the fee customarily
charged in the locality for similar legal services, the amount
involved and the results obtained, and the experience, reputation and ability of the lawyer or lawyers performing the services.
(10) "Gang" means a group that: (a) Consists of three or
more persons; (b) has identifiable leadership or an identifiable name, sign, or symbol; and (c) on an ongoing basis, regularly conspires and acts in concert mainly for criminal purposes.
(11) "Gang-related activity" means any activity that
occurs within the gang or advances a gang purpose. [1998 c
276 § 1; 1973 1st ex.s. c 207 § 3.]
59.18.040
59.18.040 Living arrangements exempted from chapter. The following living arrangements are not intended to be
governed by the provisions of this chapter, unless established
primarily to avoid its application, in which event the provisions of this chapter shall control:
(1) Residence at an institution, whether public or private,
where residence is merely incidental to detention or the provision of medical, religious, educational, recreational, or similar services, including but not limited to correctional facilities, licensed nursing homes, monasteries and convents, and
hospitals;
(2) Occupancy under a bona fide earnest money agreement to purchase or contract of sale of the dwelling unit or the
property of which it is a part, where the tenant is, or stands in
the place of, the purchaser;
(3) Residence in a hotel, motel, or other transient lodging
whose operation is defined in RCW 19.48.010;
(2004 Ed.)
Residential Landlord-Tenant Act
(4) Rental agreements entered into pursuant to the provisions of chapter 47.12 RCW where occupancy is by an
owner-condemnee and where such agreement does not violate the public policy of this state of ensuring decent, safe,
and sanitary housing and is so certified by the consumer protection division of the attorney general's office;
(5) Rental agreements for the use of any single family
residence which are incidental to leases or rentals entered into
in connection with a lease of land to be used primarily for
agricultural purposes;
(6) Rental agreements providing housing for seasonal
agricultural employees while provided in conjunction with
such employment;
(7) Rental agreements with the state of Washington,
department of natural resources, on public lands governed by
Title 79 RCW;
(8) Occupancy by an employee of a landlord whose right
to occupy is conditioned upon employment in or about the
premises. [1989 c 342 § 3; 1973 1st ex.s. c 207 § 4.]
59.18.050
59.18.050 Jurisdiction of district and superior courts.
The district or superior courts of this state may exercise jurisdiction over any landlord or tenant with respect to any conduct in this state governed by this chapter or with respect to
any claim arising from a transaction subject to this chapter
within the respective jurisdictions of the district or superior
courts as provided in Article IV, section 6 of the Constitution
of the state of Washington. [1973 1st ex.s. c 207 § 5.]
59.18.055
59.18.055 Notice—Alternative procedure—Court's
jurisdiction limited—Application to chapter 59.20 RCW.
(1) When the plaintiff, after the exercise of due diligence, is
unable to personally serve the summons on the defendant, the
court may authorize the alternative means of service
described herein. Upon filing of an affidavit from the person
or persons attempting service describing those attempts, and
the filing of an affidavit from the plaintiff, plaintiff's agent, or
plaintiff's attorney stating the belief that the defendant cannot
be found, the court may enter an order authorizing service of
the summons as follows:
(a) The summons and complaint shall be posted in a conspicuous place on the premises unlawfully held, not less than
nine days from the return date stated in the summons; and
(b) Copies of the summons and complaint shall be
deposited in the mail, postage prepaid, by both regular mail
and certified mail directed to the defendant's or defendants'
last known address not less than nine days from the return
date stated in the summons.
When service on the defendant or defendants is accomplished by this alternative procedure, the court's jurisdiction
is limited to restoring possession of the premises to the plaintiff and no money judgment may be entered against the
defendant or defendants until such time as jurisdiction over
the defendant or defendants is obtained.
(2) This section shall apply to this chapter and chapter
59.20 RCW. [1997 c 86 § 1; 1989 c 342 § 14.]
59.18.060
59.18.060 Landlord—Duties. The landlord will at all
times during the tenancy keep the premises fit for human habitation, and shall in particular:
(2004 Ed.)
59.18.060
(1) Maintain the premises to substantially comply with
any applicable code, statute, ordinance, or regulation governing their maintenance or operation, which the legislative
body enacting the applicable code, statute, ordinance or regulation could enforce as to the premises rented if such condition substantially endangers or impairs the health or safety of
the tenant;
(2) Maintain the roofs, floors, walls, chimneys, fireplaces, foundations, and all other structural components in
reasonably good repair so as to be usable and capable of
resisting any and all normal forces and loads to which they
may be subjected;
(3) Keep any shared or common areas reasonably clean,
sanitary, and safe from defects increasing the hazards of fire
or accident;
(4) Provide a reasonable program for the control of infestation by insects, rodents, and other pests at the initiation of
the tenancy and, except in the case of a single family residence, control infestation during tenancy except where such
infestation is caused by the tenant;
(5) Except where the condition is attributable to normal
wear and tear, make repairs and arrangements necessary to
put and keep the premises in as good condition as it by law or
rental agreement should have been, at the commencement of
the tenancy;
(6) Provide reasonably adequate locks and furnish keys
to the tenant;
(7) Maintain all electrical, plumbing, heating, and other
facilities and appliances supplied by him in reasonably good
working order;
(8) Maintain the dwelling unit in reasonably weathertight condition;
(9) Except in the case of a single family residence, provide and maintain appropriate receptacles in common areas
for the removal of ashes, rubbish, and garbage, incidental to
the occupancy and arrange for the reasonable and regular
removal of such waste;
(10) Except where the building is not equipped for the
purpose, provide facilities adequate to supply heat and water
and hot water as reasonably required by the tenant;
(11)(a) Provide a written notice to all tenants disclosing
fire safety and protection information. The landlord or his or
her authorized agent must provide a written notice to the tenant that the dwelling unit is equipped with a smoke detection
device as required in RCW 48.48.140. The notice shall
inform the tenant of the tenant's responsibility to maintain the
smoke detection device in proper operating condition and of
penalties for failure to comply with the provisions of RCW
48.48.140(3). The notice must be signed by the landlord or
the landlord's authorized agent and tenant with copies provided to both parties. Further, except with respect to a singlefamily residence, the written notice must also disclose the
following:
(i) Whether the smoke detection device is hard-wired or
battery operated;
(ii) Whether the building has a fire sprinkler system;
(iii) Whether the building has a fire alarm system;
(iv) Whether the building has a smoking policy, and
what that policy is;
[Title 59 RCW—page 9]
59.18.063
Title 59 RCW: Landlord and Tenant
(v) Whether the building has an emergency notification
plan for the occupants and, if so, provide a copy to the occupants;
(vi) Whether the building has an emergency relocation
plan for the occupants and, if so, provide a copy to the occupants; and
(vii) Whether the building has an emergency evacuation
plan for the occupants and, if so, provide a copy to the occupants.
(b) The information required under this subsection may
be provided to a tenant in a multifamily residential building
either as a written notice or as a checklist that discloses
whether the building has fire safety and protection devices
and systems. The checklist shall include a diagram showing
the emergency evacuation routes for the occupants.
(c) The written notice or checklist must be provided to
new tenants at the time the lease or rental agreement is
signed, and must be provided to current tenants as soon as
possible, but not later than January 1, 2004; and
(12) Designate to the tenant the name and address of the
person who is the landlord by a statement on the rental agreement or by a notice conspicuously posted on the premises.
The tenant shall be notified immediately of any changes by
certified mail or by an updated posting. If the person designated in this section does not reside in the state where the premises are located, there shall also be designated a person who
resides in the county who is authorized to act as an agent for
the purposes of service of notices and process, and if no designation is made of a person to act as agent, then the person
to whom rental payments are to be made shall be considered
such agent;
No duty shall devolve upon the landlord to repair a
defective condition under this section, nor shall any defense
or remedy be available to the tenant under this chapter, where
the defective condition complained of was caused by the conduct of such tenant, his family, invitee, or other person acting
under his control, or where a tenant unreasonably fails to
allow the landlord access to the property for purposes of
repair. When the duty imposed by subsection (1) of this section is incompatible with and greater than the duty imposed
by any other provisions of this section, the landlord's duty
shall be determined pursuant to subsection (1) of this section.
[2002 c 259 § 1; 1991 c 154 § 2; 1973 1st ex.s. c 207 § 6.]
59.18.063
59.18.063 Landlord—Provide written receipt upon
request. A landlord shall provide, upon the request of a tenant, a written receipt for any payments made by the tenant.
[1997 c 84 § 1.]
59.18.070
59.18.070 Landlord—Failure to perform duties—
Notice from tenant—Contents—Time limits for landlord's remedial action. If at any time during the tenancy the
landlord fails to carry out the duties required by RCW
59.18.060 or by the rental agreement, the tenant may, in addition to pursuit of remedies otherwise provided him by law,
deliver written notice to the person designated in *RCW
59.18.060(11), or to the person who collects the rent, which
notice shall specify the premises involved, the name of the
owner, if known, and the nature of the defective condition.
The landlord shall commence remedial action after receipt of
[Title 59 RCW—page 10]
such notice by the tenant as soon as possible but not later than
the following time periods, except where circumstances are
beyond the landlord's control:
(1) Not more than twenty-four hours, where the defective condition deprives the tenant of hot or cold water, heat,
or electricity, or is imminently hazardous to life;
(2) Not more than seventy-two hours, where the defective condition deprives the tenant of the use of a refrigerator,
range and oven, or a major plumbing fixture supplied by the
landlord; and
(3) Not more than ten days in all other cases.
In each instance the burden shall be on the landlord to
see that remedial work under this section is completed
promptly. If completion is delayed due to circumstances
beyond the landlord's control, including the unavailability of
financing, the landlord shall remedy the defective condition
as soon as possible. [1989 c 342 § 4; 1973 1st ex.s. c 207 §
7.]
*Reviser's note: RCW 59.18.060 was amended by 1991 c 154 § 2
changing subsection (11) to subsection (12).
59.18.075
59.18.075 Seizure of illegal drugs—Notification of
landlord. (1) Any law enforcement agency which seizes a
legend drug pursuant to a violation of chapter 69.41 RCW, a
controlled substance pursuant to a violation of chapter 69.50
RCW, or an imitation controlled substance pursuant to a violation of chapter 69.52 RCW, shall make a reasonable
attempt to discover the identity of the landlord and shall
notify the landlord in writing, at the last address listed in the
property tax records and at any other address known to the
law enforcement agency, of the seizure and the location of
the seizure of the illegal drugs or substances.
(2) Any law enforcement agency which arrests a tenant
for threatening another tenant with a firearm or other deadly
weapon, or for some other unlawful use of a firearm or other
deadly weapon on the rental premises, or for physically
assaulting another person on the rental premises, shall make
a reasonable attempt to discover the identity of the landlord
and notify the landlord about the arrest in writing, at the last
address listed in the property tax records and at any other
address known to the law enforcement agency. [1992 c 38 §
4; 1988 c 150 § 11.]
Intent—Effective date—1992 c 38: See notes following RCW
59.18.352.
Legislative findings—Severability—1988 c 150: See notes following
RCW 59.18.130.
59.18.080
59.18.080 Payment of rent condition to exercising
remedies—Exceptions. The tenant shall be current in the
payment of rent including all utilities which the tenant has
agreed in the rental agreement to pay before exercising any of
the remedies accorded him under the provisions of this chapter: PROVIDED, That this section shall not be construed as
limiting the tenant's civil remedies for negligent or intentional damages: PROVIDED FURTHER, That this section
shall not be construed as limiting the tenant's right in an
unlawful detainer proceeding to raise the defense that there is
no rent due and owing. [1973 1st ex.s. c 207 § 8.]
59.18.085
59.18.085 Rental of condemned or unlawful dwelling—Tenant's remedies. (1) If a governmental agency
(2004 Ed.)
Residential Landlord-Tenant Act
responsible for the enforcement of a building, housing, or
other appropriate code has notified the landlord that a dwelling is condemned or unlawful to occupy due to the existence
of conditions that violate applicable codes, statutes, ordinances, or regulations, a landlord shall not enter into a rental
agreement for the dwelling unit until the conditions are corrected.
(2) If a landlord knowingly violates subsection (1) of this
section, the tenant shall recover either three months' periodic
rent or up to treble the actual damages sustained as a result of
the violation, whichever is greater, costs of suit, or arbitration
and reasonable attorneys' fees. If the tenant elects to terminate the tenancy as a result of the conditions leading to the
posting, or if the appropriate governmental agency requires
that the tenant vacate the premises, the tenant also shall
recover:
(a) The entire amount of any deposit prepaid by the tenant; and
(b) All prepaid rent. [1989 c 342 § 13.]
59.18.090
59.18.090 Landlord's failure to remedy defective
condition—Tenant's choice of actions. If, after receipt of
written notice, and expiration of the applicable period of
time, as provided in RCW 59.18.070, the landlord fails to
remedy the defective condition within a reasonable time the
tenant may:
(1) Terminate the rental agreement and quit the premises
upon written notice to the landlord without further obligation
under the rental agreement, in which case he shall be discharged from payment of rent for any period following the
quitting date, and shall be entitled to a pro rata refund of any
prepaid rent, and shall receive a full and specific statement of
the basis for retaining any of the deposit together with any
refund due in accordance with RCW 59.18.280;
(2) Bring an action in an appropriate court, or at arbitration if so agreed, for any remedy provided under this chapter
or otherwise provided by law; or
(3) Pursue other remedies available under this chapter.
[1973 1st ex.s. c 207 § 9.]
59.18.100
59.18.100 Landlord's failure to carry out duties—
Repairs effected by tenant—Procedure—Deduction of
cost from rent—Limitations. (1) If at any time during the
tenancy, the landlord fails to carry out any of the duties
imposed by RCW 59.18.060, and notice of the defect is given
to the landlord pursuant to RCW 59.18.070, the tenant may
submit to the landlord or his designated agent by certified
mail or in person a good faith estimate by the tenant of the
cost to perform the repairs necessary to correct the defective
condition if the repair is to be done by licensed or registered
persons, or if no licensing or registration requirement applies
to the type of work to be performed, the cost if the repair is to
be done by responsible persons capable of performing such
repairs. Such estimate may be submitted to the landlord at the
same time as notice is given pursuant to RCW 59.18.070:
PROVIDED, That the remedy provided in this section shall
not be available for a landlord's failure to carry out the duties
in *RCW 59.18.060 (9), and (11): PROVIDED FURTHER,
That if the tenant utilizes this section for repairs pursuant to
RCW 59.18.060(6), the tenant shall promptly provide the
(2004 Ed.)
59.18.100
landlord with a key to any new or replaced locks. The amount
the tenant may deduct from the rent may vary from the estimate, but cannot exceed the one-month limit as described in
subsection (2) of this section.
(2) If the landlord fails to commence remedial action of
the defective condition within the applicable time period after
receipt of notice and the estimate from the tenant, the tenant
may contract with a licensed or registered person, or with a
responsible person capable of performing the repair if no
license or registration is required, to make the repair, and
upon the completion of the repair and an opportunity for
inspection by the landlord or his designated agent, the tenant
may deduct the cost of repair from the rent in an amount not
to exceed the sum expressed in dollars representing one
month's rental of the tenant's unit per repair: PROVIDED,
That when the landlord must commence to remedy the defective condition within ten days as provided in RCW
59.18.070(3), the tenant cannot contract for repairs for ten
days after notice or five days after the landlord receives the
estimate, whichever is later: PROVIDED FURTHER, That
the total costs of repairs deducted in any twelve-month period
under this subsection shall not exceed the sum expressed in
dollars representing two month's rental of the tenant's unit.
(3) If the landlord fails to carry out the duties imposed by
RCW 59.18.060 within the applicable time period, and if the
cost of repair does not exceed one-half month's rent, including the cost of materials and labor, which shall be computed
at the prevailing rate in the community for the performance of
such work, and if repair of the condition need not by law be
performed only by licensed or registered persons, and if the
tenant has given notice under RCW 59.18.070, although no
estimate shall be necessary under this subsection, the tenant
may repair the defective condition in a workmanlike manner
and upon completion of the repair and an opportunity for
inspection, the tenant may deduct the cost of repair from the
rent: PROVIDED, That repairs under this subsection are limited to defects within the leased premises: PROVIDED
FURTHER, That the cost per repair shall not exceed one-half
month's rent of the unit and that the total costs of repairs
deducted in any twelve-month period under this subsection
shall not exceed one month's rent of the unit.
(4) The provisions of this section shall not:
(a) Create a relationship of employer and employee
between landlord and tenant; or
(b) Create liability under the workers' compensation act;
or
(c) Constitute the tenant as an agent of the landlord for
the purposes of **RCW 60.04.010 and 60.04.040.
(5) Any repair work performed under the provisions of
this section shall comply with the requirements imposed by
any applicable code, statute, ordinance, or regulation. A landlord whose property is damaged because of repairs performed
in a negligent manner may recover the actual damages in an
action against the tenant.
(6) Nothing in this section shall prevent the tenant from
agreeing with the landlord to undertake the repairs himself in
return for cash payment or a reasonable reduction in rent, the
agreement thereof to be agreed upon between the parties, and
such agreement does not alter the landlord's obligations under
this chapter. [1989 c 342 § 5; 1987 c 185 § 35; 1973 1st ex.s.
c 207 § 10.]
[Title 59 RCW—page 11]
59.18.110
Title 59 RCW: Landlord and Tenant
Reviser's note: *(1) RCW 59.18.060 was amended by 1991 c 154 § 2
changing subsection (11) to subsection (12).
**(2) RCW 60.04.010 and 60.04.040 were repealed by 1991 c 281 §
31, effective April 1, 1992.
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
59.18.110
59.18.110 Failure of landlord to carry out duties—
Determination by court or arbitrator—Judgment against
landlord for diminished rental value and repair costs—
Enforcement of judgment—Reduction in rent under certain conditions. (1) If a court or an arbitrator determines
that:
(a) A landlord has failed to carry out a duty or duties
imposed by RCW 59.18.060; and
(b) A reasonable time has passed for the landlord to remedy the defective condition following notice to the landlord
in accordance with RCW 59.18.070 or such other time as
may be allotted by the court or arbitrator; the court or arbitrator may determine the diminution in rental value of the premises due to the defective condition and shall render judgment against the landlord for the rent paid in excess of such
diminished rental value from the time of notice of such defect
to the time of decision and any costs of repair done pursuant
to RCW 59.18.100 for which no deduction has been previously made. Such decisions may be enforced as other judgments at law and shall be available to the tenant as a set-off
against any existing or subsequent claims of the landlord.
The court or arbitrator may also authorize the tenant to
make or contract to make further corrective repairs: PROVIDED, That the court specifies a time period in which the
landlord may make such repairs before the tenant may commence or contract for such repairs: PROVIDED FURTHER,
That such repairs shall not exceed the sum expressed in dollars representing one month's rental of the tenant's unit in any
one calendar year.
(2) The tenant shall not be obligated to pay rent in excess
of the diminished rental value of the premises until such
defect or defects are corrected by the landlord or until the
court or arbitrator determines otherwise. [1973 1st ex.s. c
207 § 11.]
59.18.115
59.18.115 Substandard and dangerous conditions—
Notice to landlord—Government certification—Escrow
account. (1) The legislature finds that some tenants live in
residences that are substandard and dangerous to their health
and safety and that the repair and deduct remedies of RCW
59.18.100 may not be adequate to remedy substandard and
dangerous conditions. Therefore, an extraordinary remedy is
necessary if the conditions substantially endanger or impair
the health and safety of the tenant.
(2)(a) If a landlord fails to fulfill any substantial obligation imposed by RCW 59.18.060 that substantially endangers
or impairs the health or safety of a tenant, including (i) structural members that are of insufficient size or strength to carry
imposed loads with safety, (ii) exposure of the occupants to
the weather, (iii) plumbing and sanitation defects that directly
expose the occupants to the risk of illness or injury, (iv) lack
of water, including hot water, (v) heating or ventilation systems that are not functional or are hazardous, (vi) defective,
hazardous, or missing electrical wiring or electrical service,
[Title 59 RCW—page 12]
(vii) defective or inadequate exits that increase the risk of
injury to occupants, and (viii) conditions that increase the risk
of fire, the tenant shall give notice in writing to the landlord,
specifying the conditions, acts, omissions, or violations. Such
notice shall be sent to the landlord or to the person or place
where rent is normally paid.
(b) If after receipt of the notice described in (a) of this
subsection the landlord fails to remedy the condition or conditions within a reasonable amount of time under RCW
59.18.070, the tenant may request that the local government
provide for an inspection of the premises with regard to the
specific condition or conditions that exist as provided in (a)
of this subsection. The local government shall have the
appropriate government official, or may designate a public or
disinterested private person or company capable of conducting the inspection and making the certification, conduct an
inspection of the specific condition or conditions listed by the
tenant, and shall not inspect nor be liable for any other condition or conditions of the premises. The purpose of this inspection is to verify, to the best of the inspector's ability, whether
the tenant's listed condition or conditions exist and substantially endanger the tenant's health or safety under (a) of this
subsection; the inspection is for the purposes of this private
civil remedy, and therefore shall not be related to any other
governmental function such as enforcement of any code,
ordinance, or state law.
(c) The local government or its designee, after receiving
the request from the tenant to conduct an inspection under
this section, shall conduct the inspection and make any certification within a reasonable amount of time not more than
five days from the date of receipt of the request. The local
government or its designee may enter the premises at any reasonable time to do the inspection, provided that he or she first
shall display proper credentials and request entry. The local
government or its designee shall whenever practicable, taking into consideration the imminence of any threat to the tenant's health or safety, give the landlord at least twenty-four
hours notice of the date and time of inspection and provide
the landlord with an opportunity to be present at the time of
the inspection. The landlord shall have no power or authority
to prohibit entry for the inspection.
(d) The local government or its designee shall certify
whether the condition or the conditions specified by the tenant do exist and do make the premises substantially unfit for
human habitation or can be a substantial risk to the health and
safety of the tenant as described in (a) of this subsection. The
certification shall be provided to the tenant, and a copy shall
be included by the tenant with the notice sent to the landlord
under subsection (3) of this section. The certification may be
appealed to the local board of appeals, but the appeal shall not
delay or preclude the tenant from proceeding with the escrow
under this section.
(e) The tenant shall not be entitled to deposit rent in
escrow pursuant to this section unless the tenant first makes a
good faith determination that he or she is unable to repair the
conditions described in the certification issued pursuant to
subsection (2)(d) of this section through use of the repair
remedies authorized by RCW 59.18.100.
(f) If the local government or its designee certifies that
the condition or conditions specified by the tenant exist, the
tenant shall then either pay the periodic rent due to the land(2004 Ed.)
Residential Landlord-Tenant Act
lord or deposit all periodic rent then called for in the rental
agreement and all rent thereafter called for in the rental agreement into an escrow account maintained by a person authorized by law to set up and maintain escrow accounts, including escrow companies under chapter 18.44 RCW, financial
institutions, or attorneys, or with the clerk of the court of the
district or superior court where the property is located. These
depositories are hereinafter referred to as "escrow." The tenant shall notify the landlord in writing of the deposit by mailing the notice postage prepaid by first class mail or by delivering the notice to the landlord promptly but not more than
twenty-four hours after the deposit.
(g) This section, when elected as a remedy by the tenant
by sending the notice under subsection (3) of this section,
shall be the exclusive remedy available to the tenant regarding defects described in the certification under subsection
(2)(d) of this section: PROVIDED, That the tenant may
simultaneously commence or pursue an action in an appropriate court, or at arbitration if so agreed, to determine past,
present, or future diminution in rental value of the premises
due to any defective conditions.
(3) The notice to the landlord of the rent escrow under
this section shall be a sworn statement by the tenant in substantially the following form:
NOTICE TO LANDLORD OF RENT ESCROW
Name of tenant:
Name of landlord:
Name and address of escrow:
Date of deposit of rent into escrow:
Amount of rent deposited into escrow:
The following condition has been certified by a
local building official to substantially endanger,
impair, or affect the health or safety of a tenant:
That written notice of the conditions needing repair
was provided to the landlord on . . ., and . . . days
have elapsed and the repairs have not been made.
......................
(Sworn Signature)
(4) The escrow shall place all rent deposited in a separate
rent escrow account in the name of the escrow in a bank or
savings and loan association domiciled in this state. The
escrow shall keep in a separate docket an account of each
deposit, with the name and address of the tenant, and the
name and address of the landlord and of the agent, if any.
(5)(a) A landlord who receives notice that the rent due
has been deposited with an escrow pursuant to subsection (2)
of this section may:
(i) Apply to the escrow for release of the funds after the
local government certifies that the repairs to the conditions
listed in the notice under subsection (3) of this section have
been properly repaired. The escrow shall release the funds to
the landlord less any escrow costs for which the tenant is entitled to reimbursement pursuant to this section, immediately
upon written receipt of the local government certification that
the repairs to the conditions listed in the notice under subsection (3) of this section have been properly completed.
(ii) File an action with the court and apply to the court for
release of the rent on the grounds that the tenant did not comply with the notice requirement of subsection (2) or (3) of this
(2004 Ed.)
59.18.115
section. Proceedings under this subsection shall be governed
by the time, service, and filing requirements of RCW
59.18.370 regarding show cause hearings.
(iii) File an action with the court and apply to the court
for release of the rent on the grounds that there was no violation of any obligation imposed upon the landlord or that the
condition has been remedied.
(iv) This action may be filed in any court having jurisdiction, including small claims court. If the tenant has vacated
the premises or if the landlord has failed to commence an
action with the court for release of the funds within sixty days
after rent is deposited in escrow, the tenant may file an action
to determine how and when any rent deposited in escrow
shall be released or disbursed. The landlord shall not commence an unlawful detainer action for nonpayment of rent by
serving or filing a summons and complaint if the tenant initially pays the rent called for in the rental agreement that is
due into escrow as provided for under this section on or
before the date rent is due or on or before the expiration of a
three-day notice to pay rent or vacate and continues to pay the
rent into escrow as the rent becomes due or prior to the expiration of a three-day notice to pay rent or vacate; provided
that the landlord shall not be barred from commencing an
unlawful detainer action for nonpayment of rent if the
amount of rent that is paid into escrow is less than the amount
of rent agreed upon in the rental agreement between the parties.
(b) The tenant shall be named as a party to any action
filed by the landlord under this section, and shall have the
right to file an answer and counterclaim, although any counterclaim shall be dismissed without prejudice if the court or
arbitrator determines that the tenant failed to follow the
notice requirements contained in this section. Any counterclaim can only claim diminished rental value related to conditions specified by the tenant in the notice required under
subsection (3) of this section. This limitation on the tenant's
right to counterclaim shall not affect the tenant's right to bring
his or her own separate action. A trial shall be held within
sixty days of the date of filing of the landlord's or tenant's
complaint.
(c) The tenant shall be entitled to reimbursement for any
escrow costs or fees incurred for setting up or maintaining an
escrow account pursuant to this section, unless the tenant did
not comply with the notice requirements of subsection (2) or
(3) of this section. Any escrow fees that are incurred for
which the tenant is entitled to reimbursement shall be
deducted from the rent deposited in escrow and remitted to
the tenant at such time as any rent is released to the landlord.
The prevailing party in any court action or arbitration brought
under this section may also be awarded its costs and reasonable attorneys' fees.
(d) If a court determines a diminished rental value of the
premises, the tenant may pay the rent due based on the diminished value of the premises into escrow until the landlord
makes the necessary repairs.
(6)(a) If a landlord brings an action for the release of rent
deposited, the court may, upon application of the landlord,
release part of the rent on deposit for payment of the debt service on the premises, the insurance premiums for the premises, utility services, and repairs to the rental unit.
[Title 59 RCW—page 13]
59.18.120
Title 59 RCW: Landlord and Tenant
(b) In determining whether to release rent for the payments described in (a) of this subsection, the court shall consider the amount of rent the landlord receives from other
rental units in the buildings of which the residential premises
are a part, the cost of operating those units, and the costs
which may be required to remedy the condition contained in
the notice. The court shall also consider whether the expenses
are due or have already been paid, whether the landlord has
other financial resources, or whether the landlord or tenant
will suffer irreparable damage. The court may request the
landlord to provide additional security, such as a bond, prior
to authorizing release of any of the funds in escrow. [1989 c
342 § 16.]
59.18.120
59.18.120 Defective condition—Unfeasible to remedy
defect—Termination of tenancy. If a court or arbitrator
determines a defective condition as described in RCW
59.18.060 to be so substantial that it is unfeasible for the
landlord to remedy the defect within the time allotted by
RCW 59.18.070, and that the tenant should not remain in the
dwelling unit in its defective condition, the court or arbitrator
may authorize the termination of the tenancy: PROVIDED,
That the court or arbitrator shall set a reasonable time for the
tenant to vacate the premises. [1973 1st ex.s. c 207 § 12.]
59.18.130
59.18.130 Duties of tenant. Each tenant shall pay the
rental amount at such times and in such amounts as provided
for in the rental agreement or as otherwise provided by law
and comply with all obligations imposed upon tenants by
applicable provisions of all municipal, county, and state
codes, statutes, ordinances, and regulations, and in addition
shall:
(1) Keep that part of the premises which he or she occupies and uses as clean and sanitary as the conditions of the
premises permit;
(2) Properly dispose from his or her dwelling unit all
rubbish, garbage, and other organic or flammable waste, in a
clean and sanitary manner at reasonable and regular intervals,
and assume all costs of extermination and fumigation for
infestation caused by the tenant;
(3) Properly use and operate all electrical, gas, heating,
plumbing and other fixtures and appliances supplied by the
landlord;
(4) Not intentionally or negligently destroy, deface,
damage, impair, or remove any part of the structure or dwelling, with the appurtenances thereto, including the facilities,
equipment, furniture, furnishings, and appliances, or permit
any member of his or her family, invitee, licensee, or any person acting under his or her control to do so. Violations may
be prosecuted under chapter 9A.48 RCW if the destruction is
intentional and malicious;
(5) Not permit a nuisance or common waste;
(6) Not engage in drug-related activity at the rental premises, or allow a subtenant, sublessee, resident, or anyone
else to engage in drug-related activity at the rental premises
with the knowledge or consent of the tenant. "Drug-related
activity" means that activity which constitutes a violation of
chapter 69.41, 69.50, or 69.52 RCW;
(7) Maintain the smoke detection device in accordance
with the manufacturer's recommendations, including the
[Title 59 RCW—page 14]
replacement of batteries where required for the proper operation of the smoke detection device, as required in RCW
48.48.140(3);
(8) Not engage in any activity at the rental premises that
is:
(a) Imminently hazardous to the physical safety of other
persons on the premises; and
(b)(i) Entails physical assaults upon another person
which result in an arrest; or
(ii) Entails the unlawful use of a firearm or other deadly
weapon as defined in RCW 9A.04.110 which results in an
arrest, including threatening another tenant or the landlord
with a firearm or other deadly weapon under RCW
59.18.352. Nothing in this subsection (8) shall authorize the
termination of tenancy and eviction of the victim of a physical assault or the victim of the use or threatened use of a firearm or other deadly weapon;
(9) Not engage in any gang-related activity at the premises, as defined in RCW 59.18.030, or allow another to
engage in such activity at the premises, that renders people in
at least two or more dwelling units or residences insecure in
life or the use of property or that injures or endangers the
safety or health of people in at least two or more dwelling
units or residences. In determining whether a tenant is
engaged in gang-related activity, a court should consider the
totality of the circumstances, including factors such as
whether there have been a significant number of complaints
to the landlord about the tenant's activities at the property,
damages done by the tenant to the property, including the
property of other tenants or neighbors, harassment or threats
made by the tenant to other tenants or neighbors that have
been reported to law enforcement agencies, any police incident reports involving the tenant, and the tenant's criminal
history; and
(10) Upon termination and vacation, restore the premises
to their initial condition except for reasonable wear and tear
or conditions caused by failure of the landlord to comply with
his or her obligations under this chapter: PROVIDED, That
the tenant shall not be charged for normal cleaning if he or
she has paid a nonrefundable cleaning fee. [1998 c 276 § 2;
1992 c 38 § 2; 1991 c 154 § 3; 1988 c 150 § 2; 1983 c 264 §
3; 1973 1st ex.s. c 207 § 13.]
Intent—Effective date—1992 c 38: See notes following RCW
59.18.352.
Legislative findings—1988 c 150: "The legislature finds that the illegal use, sale, and manufacture of drugs and other drug-related activities is a
statewide problem. Innocent persons, especially children, who come into
contact with illegal drug-related activity within their own neighborhoods are
seriously and adversely affected. Rental property is damaged and devalued
by drug activities. The legislature further finds that a rapid and efficient
response is necessary to: (1) Lessen the occurrence of drug-related enterprises; (2) reduce the drug use and trafficking problems within this state; and
(3) reduce the damage caused to persons and property by drug activity. The
legislature finds that it is beneficial to rental property owners and to the public to permit landlords to quickly and efficiently evict persons who engage in
drug-related activities at rented premises." [1988 c 150 § 1.]
Severability—1988 c 150: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1988 c 150 § 15.]
59.18.140
59.18.140 Reasonable obligations or restrictions—
Tenant's duty to conform. The tenant shall conform to all
(2004 Ed.)
Residential Landlord-Tenant Act
reasonable obligations or restrictions, whether denominated
by the landlord as rules, rental agreement, rent, or otherwise,
concerning the use, occupation, and maintenance of his
dwelling unit, appurtenances thereto, and the property of
which the dwelling unit is a part if such obligations and
restrictions are not in violation of any of the terms of this
chapter and are not otherwise contrary to law, and if such
obligations and restrictions are brought to the attention of the
tenant at the time of his initial occupancy of the dwelling unit
and thus become part of the rental agreement. Except for termination of tenancy, after thirty days written notice to each
affected tenant, a new rule of tenancy including a change in
the amount of rent may become effective upon completion of
the term of the rental agreement or sooner upon mutual consent. [1989 c 342 § 6; 1973 1st ex.s. c 207 § 14.]
59.18.150 Landlord's right of entry—Purposes—
Searches by fire officials—Conditions. (1) The tenant shall
not unreasonably withhold consent to the landlord to enter
into the dwelling unit in order to inspect the premises, make
necessary or agreed repairs, alterations, or improvements,
supply necessary or agreed services, or exhibit the dwelling
unit to prospective or actual purchasers, mortgagees, tenants,
workers, or contractors.
(2) Upon written notice of intent to seek a search warrant, when a tenant or landlord denies a fire official the right
to search a dwelling unit, a fire official may immediately seek
a search warrant and, upon a showing of probable cause specific to the dwelling unit sought to be searched that criminal
fire code violations exist in the dwelling unit, a court of competent jurisdiction shall issue a warrant allowing a search of
the dwelling unit.
Upon written notice of intent to seek a search warrant,
when a landlord denies a fire official the right to search the
common areas of the rental building other than the dwelling
unit, a fire official may immediately seek a search warrant
and, upon a showing of probable cause specific to the common area sought to be searched that a criminal fire code violation exists in those areas, a court of competent jurisdiction
shall issue a warrant allowing a search of the common areas
in which the violation is alleged.
The superior court and courts of limited jurisdiction
organized under Titles 3, 35, and 35A RCW have jurisdiction
to issue such search warrants. Evidence obtained pursuant to
any such search may be used in a civil or administrative
enforcement action.
(3) As used in this section:
(a) "Common areas" means a common area or those
areas that contain electrical, plumbing, and mechanical
equipment and facilities used for the operation of the rental
building.
(b) "Fire official" means any fire official authorized to
enforce the state or local fire code.
(4) The landlord may enter the dwelling unit without
consent of the tenant in case of emergency or abandonment.
(5) The landlord shall not abuse the right of access or use
it to harass the tenant. Except in the case of emergency or if it
is impracticable to do so, the landlord shall give the tenant at
least two days' notice of his or her intent to enter and shall
enter only at reasonable times. The tenant shall not unreasonably withhold consent to the landlord to enter the dwelling
59.18.150
(2004 Ed.)
59.18.180
unit at a specified time where the landlord has given at least
one day's notice of intent to enter to exhibit the dwelling unit
to prospective or actual purchasers or tenants. A landlord
shall not unreasonably interfere with a tenant's enjoyment of
the rented dwelling unit by excessively exhibiting the dwelling unit.
(6) The landlord has no other right of access except by
court order, arbitrator or by consent of the tenant.
(7) A landlord or tenant who continues to violate the
rights of the tenant or landlord with respect to the duties
imposed on the other as set forth in this section after being
served with one written notification alleging in good faith
violations of this section listing the date and time of the violation shall be liable for up to one hundred dollars for each
violation after receipt of the notice. The prevailing landlord
or tenant may recover costs of the suit or arbitration under
this section, and may also recover reasonable attorneys' fees.
(8) Nothing in this section is intended to abrogate or
modify in any way any common law right or privilege. [2002
c 263 § 1. Prior: 1989 c 342 § 7; 1989 c 12 § 18; 1973 1st
ex.s. c 207 § 15.]
59.18.160
59.18.160 Landlord's remedies if tenant fails to remedy defective condition. If, after receipt of written notice, as
provided in RCW 59.18.170, the tenant fails to remedy the
defective condition within a reasonable time, the landlord
may:
(1) Bring an action in an appropriate court, or at arbitration if so agreed for any remedy provided under this chapter
or otherwise provided by law; or
(2) Pursue other remedies available under this chapter.
[1973 1st ex.s. c 207 § 16.]
59.18.170
59.18.170 Landlord to give notice if tenant fails to
carry out duties. If at any time during the tenancy the tenant
fails to carry out the duties required by RCW 59.18.130 or
59.18.140, the landlord may, in addition to pursuit of remedies otherwise provided by law, give written notice to the tenant of said failure, which notice shall specify the nature of the
failure. [1973 1st ex.s. c 207 § 17.]
59.18.180
59.18.180 Tenant's failure to comply with statutory
duties—Landlord to give tenant written notice of noncompliance—Landlord's remedies. (1) If the tenant fails to
comply with any portion of RCW 59.18.130 or 59.18.140,
and such noncompliance can substantially affect the health
and safety of the tenant or other tenants, or substantially
increase the hazards of fire or accident that can be remedied
by repair, replacement of a damaged item, or cleaning, the
tenant shall comply within thirty days after written notice by
the landlord specifying the noncompliance, or, in the case of
emergency as promptly as conditions require. If the tenant
fails to remedy the noncompliance within that period the
landlord may enter the dwelling unit and cause the work to be
done and submit an itemized bill of the actual and reasonable
cost of repair, to be payable on the next date when periodic
rent is due, or on terms mutually agreed to by the landlord
and tenant, or immediately if the rental agreement has terminated. Any substantial noncompliance by the tenant of RCW
59.18.130 or 59.18.140 shall constitute a ground for com[Title 59 RCW—page 15]
59.18.190
Title 59 RCW: Landlord and Tenant
mencing an action in unlawful detainer in accordance with
the provisions of chapter 59.12 RCW, and a landlord may
commence such action at any time after written notice pursuant to such chapter. The tenant shall have a defense to an
unlawful detainer action filed solely on this ground if it is
determined at the hearing authorized under the provisions of
chapter 59.12 RCW that the tenant is in substantial compliance with the provisions of this section, or if the tenant remedies the noncomplying condition within the thirty day period
provided for above or any shorter period determined at the
hearing to have been required because of an emergency:
PROVIDED, That if the defective condition is remedied after
the commencement of an unlawful detainer action, the tenant
may be liable to the landlord for statutory costs and reasonable attorney's fees.
(2) If drug-related activity is alleged to be a basis for termination of tenancy under RCW 59.18.130(6), 59.12.030(5),
or 59.20.140(5), the compliance provisions of this section do
not apply and the landlord may proceed directly to an unlawful detainer action.
(3) If activity on the premises that creates an imminent
hazard to the physical safety of other persons on the premises
as defined in RCW 59.18.130(8) is alleged to be the basis for
termination of the tenancy, and the tenant is arrested as a
result of this activity, then the compliance provisions of this
section do not apply and the landlord may proceed directly to
an unlawful detainer action against the tenant who was
arrested for this activity.
(4) If gang-related activity, as prohibited under RCW
59.18.130(9), is alleged to be the basis for termination of the
tenancy, then the compliance provisions of this section do not
apply and the landlord may proceed directly to an unlawful
detainer action in accordance with chapter 59.12 RCW, and a
landlord may commence such an action at any time after written notice under chapter 59.12 RCW.
(5) A landlord may not be held liable in any cause of
action for bringing an unlawful detainer action against a tenant for drug-related activity, for creating an imminent hazard
to the physical safety of others, or for engaging in gangrelated activity that renders people in at least two or more
dwelling units or residences insecure in life or the use of
property or that injures or endangers the safety or health of
people in at least two or more dwelling units or residences
under this section, if the unlawful detainer action was brought
in good faith. Nothing in this section shall affect a landlord's
liability under RCW 59.18.380 to pay all damages sustained
by the tenant should the writ of restitution be wrongfully sued
out. [1998 c 276 § 3; 1992 c 38 § 3; 1988 c 150 § 7; 1973 1st
ex.s. c 207 § 18.]
Intent—Effective date—1992 c 38: See notes following RCW
59.18.352.
Legislative findings—Severability—1988 c 150: See notes following
RCW 59.18.130.
59.18.190
59.18.190 Notice to tenant to remedy nonconformance. Whenever the landlord learns of a breach of RCW
59.18.130 or has accepted performance by the tenant which is
at variance with the terms of the rental agreement or rules
enforceable after the commencement of the tenancy, he may
immediately give notice to the tenant to remedy the nonconformance. Said notice shall expire after sixty days unless the
[Title 59 RCW—page 16]
landlord pursues any remedy under this chapter. [1973 1st
ex.s. c 207 § 19.]
59.18.200 Tenancy from month to month or for
rental period—Termination—Armed Forces exception—
Exclusion of children or conversion to condominium—
Notice. (1)(a) When premises are rented for an indefinite
time, with monthly or other periodic rent reserved, such tenancy shall be construed to be a tenancy from month to month,
or from period to period on which rent is payable, and shall
be terminated by written notice of twenty days or more, preceding the end of any of the months or periods of tenancy,
given by either party to the other.
(b) Any tenant who is a member of the armed forces,
including the national guard and armed forces reserves, or
that tenant's spouse or dependant, may terminate a rental
agreement with less than twenty days' notice if the tenant
receives reassignment or deployment orders that do not allow
a twenty-day notice.
(2) Whenever a landlord plans to change any apartment
or apartments to a condominium form of ownership or plans
to change to a policy of excluding children, the landlord shall
give a written notice to a tenant at least ninety days before termination of the tenancy to effectuate such change in policy.
Such ninety-day notice shall be in lieu of the notice required
by subsection (1) of this section. However, if after giving the
ninety-day notice the change in policy is delayed, the notice
requirements of subsection (1) of this section shall apply
unless waived by the tenant. [2003 c 7 § 1; 1979 ex.s. c 70 §
1; 1973 1st ex.s. c 207 § 20.]
59.18.200
Effective date—2003 c 7: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[March 24, 2003]." [2003 c 7 § 4.]
Unlawful detainer, notice requirement: RCW 59.12.030(2).
59.18.210
59.18.210 Tenancies from year to year except under
written contract. Tenancies from year to year are hereby
abolished except when the same are created by express written contract. Leases may be in writing or print, or partly in
writing and partly in print, and shall be legal and valid for any
term or period not exceeding one year, without acknowledgment, witnesses or seals. [1973 1st ex.s. c 207 § 21.]
59.18.220
59.18.220 Termination of tenancy for a specified
time—Armed forces exception. (1) In all cases where premises are rented for a specified time, by express or implied
contract, the tenancy shall be deemed terminated at the end of
such specified time.
(2) Any tenant who is a member of the armed forces,
including the national guard and armed forces reserves, or
that tenant's spouse or dependent, may terminate a tenancy
for a specified time if the tenant receives reassignment or
deployment orders. The tenant shall provide notice of the
reassignment or deployment order to the landlord no later
than seven days after receipt. [2003 c 7 § 2; 1973 1st ex.s. c
207 § 22.]
Effective date—2003 c 7: See note following RCW 59.18.200.
59.18.230
59.18.230 Waiver of chapter provisions prohibited—
Provisions prohibited from rental agreement—Distress
(2004 Ed.)
Residential Landlord-Tenant Act
for rent abolished—Detention of personal property for
rent—Remedies. (1) Any provision of a lease or other
agreement, whether oral or written, whereby any section or
subsection of this chapter is waived except as provided in
RCW 59.18.360 and shall be deemed against public policy
and shall be unenforceable. Such unenforceability shall not
affect other provisions of the agreement which can be given
effect without them.
(2) No rental agreement may provide that the tenant:
(a) Agrees to waive or to forego rights or remedies under
this chapter; or
(b) Authorizes any person to confess judgment on a
claim arising out of the rental agreement; or
(c) Agrees to pay the landlord's attorney's fees, except as
authorized in this chapter; or
(d) Agrees to the exculpation or limitation of any liability of the landlord arising under law or to indemnify the landlord for that liability or the costs connected therewith; or
(e) And landlord have agreed to a particular arbitrator at
the time the rental agreement is entered into.
(3) A provision prohibited by subsection (2) of this section included in a rental agreement is unenforceable. If a
landlord deliberately uses a rental agreement containing provisions known by him to be prohibited, the tenant may
recover actual damages sustained by him and reasonable
attorney's fees.
(4) The common law right of the landlord of distress for
rent is hereby abolished for property covered by this chapter.
Any provision in a rental agreement creating a lien upon the
personal property of the tenant or authorizing a distress for
rent is null and void and of no force and effect. Any landlord
who takes or detains the personal property of a tenant without
the specific written consent of the tenant to such incident of
taking or detention, and who, after written demand by the tenant for the return of his personal property, refuses to return
the same promptly shall be liable to the tenant for the value of
the property retained, actual damages, and if the refusal is
intentional, may also be liable for damages of up to one hundred dollars per day but not to exceed one thousand dollars,
for each day or part of a day that the tenant is deprived of his
property. The prevailing party may recover his costs of suit
and a reasonable attorney's fee.
In any action, including actions pursuant to chapters 7.64
or 12.28 RCW, brought by a tenant or other person to recover
possession of his personal property taken or detained by a
landlord in violation of this section, the court, upon motion
and after notice to the opposing parties, may waive or reduce
any bond requirements where it appears to be to the satisfaction of the court that the moving party is proceeding in good
faith and has, prima facie, a meritorious claim for immediate
delivery or redelivery of said property. [1989 c 342 § 8; 1983
c 264 § 4; 1973 1st ex.s. c 207 § 23.]
59.18.240 Reprisals or retaliatory actions by landlord—Prohibited. So long as the tenant is in compliance
with this chapter, the landlord shall not take or threaten to
take reprisals or retaliatory action against the tenant because
of any good faith and lawful:
(1) Complaints or reports by the tenant to a governmental authority concerning the failure of the landlord to substantially comply with any code, statute, ordinance, or regulation
59.18.240
(2004 Ed.)
59.18.253
governing the maintenance or operation of the premises, if
such condition may endanger or impair the health or safety of
the tenant; or
(2) Assertions or enforcement by the tenant of his rights
and remedies under this chapter.
"Reprisal or retaliatory action" shall mean and include
but not be limited to any of the following actions by the landlord when such actions are intended primarily to retaliate
against a tenant because of the tenant's good faith and lawful
act:
(a) Eviction of the tenant;
(b) Increasing the rent required of the tenant;
(c) Reduction of services to the tenant; and
(d) Increasing the obligations of the tenant. [1983 c 264
§ 9; 1973 1st ex.s. c 207 § 24.]
59.18.250
59.18.250 Reprisals or retaliatory actions by landlord—Presumptions—Rebuttal—Costs. Initiation by the
landlord of any action listed in RCW 59.18.240 within ninety
days after a good faith and lawful act by the tenant as enumerated in RCW 59.18.240, or within ninety days after any
inspection or proceeding of a governmental agency resulting
from such act, shall create a rebuttable presumption affecting
the burden of proof, that the action is a reprisal or retaliatory
action against the tenant: PROVIDED, That if at the time the
landlord gives notice of termination of tenancy pursuant to
chapter 59.12 RCW the tenant is in arrears in rent or in breach
of any other lease or rental obligation, there is a rebuttable
presumption affecting the burden of proof that the landlord's
action is neither a reprisal nor retaliatory action against the
tenant: PROVIDED FURTHER, That if the court finds that
the tenant made a complaint or report to a governmental
authority within ninety days after notice of a proposed
increase in rent or other action in good faith by the landlord,
there is a rebuttable presumption that the complaint or report
was not made in good faith: PROVIDED FURTHER, That
no presumption against the landlord shall arise under this section, with respect to an increase in rent, if the landlord, in a
notice to the tenant of increase in rent, specifies reasonable
grounds for said increase, which grounds may include a substantial increase in market value due to remedial action under
this chapter: PROVIDED FURTHER, That the presumption
of retaliation, with respect to an eviction, may be rebutted by
evidence that it is not practical to make necessary repairs
while the tenant remains in occupancy. In any action or eviction proceeding where the tenant prevails upon his claim or
defense that the landlord has violated this section, the tenant
shall be entitled to recover his costs of suit or arbitration,
including a reasonable attorney's fee, and where the landlord
prevails upon his claim he shall be entitled to recover his
costs of suit or arbitration, including a reasonable attorney's
fee: PROVIDED FURTHER, That neither party may recover
attorney's fees to the extent that their legal services are provided at no cost to them. [1983 c 264 § 10; 1973 1st ex.s. c
207 § 25.]
59.18.253
59.18.253 Deposit to secure occupancy by tenant—
Landlord's duties—Violation. (1) It shall be unlawful for a
landlord to require a fee from a prospective tenant for the
[Title 59 RCW—page 17]
59.18.257
Title 59 RCW: Landlord and Tenant
privilege of being placed on a waiting list to be considered as
a tenant for a dwelling unit.
(2) A landlord who charges a prospective tenant a fee or
deposit to secure that the prospective tenant will move into a
dwelling unit, after the dwelling unit has been offered to the
prospective tenant, must provide the prospective tenant with
a receipt for the fee or deposit, together with a written statement of the conditions, if any, under which the fee or deposit
is refundable. If the prospective tenant does occupy the
dwelling unit, then the landlord must credit the amount of the
fee or deposit to the tenant's first month's rent or to the tenant's security deposit. If the prospective tenant does not
occupy the dwelling unit, then the landlord may keep up to
the full amount of any fee or deposit that was paid by the prospective tenant to secure the tenancy, so long as it is in accordance with the written statement of conditions furnished to
the prospective tenant at the time the fee or deposit was
charged. A fee charged to secure a tenancy under this subsection does not include any cost charged by a landlord to use a
tenant screening service or obtain background information on
a prospective tenant.
(3) In any action brought for a violation of this section a
landlord may be liable for the amount of the fee or deposit
charged. In addition, any landlord who violates this section
may be liable to the prospective tenant for an amount not to
exceed one hundred dollars. The prevailing party may also
recover court costs and a reasonable attorneys' fee. [1991 c
194 § 2.]
Findings—1991 c 194: "The legislature finds that tenant application
fees often have the effect of excluding low-income people from applying for
housing because many low-income people cannot afford these fees in addition to the rent and other deposits which may be required. The legislature further finds that application fees are frequently not returned to unsuccessful
applicants for housing, which creates a hardship on low-income people. The
legislature therefore finds and declares that it is the policy of the state that
certain tenant application fees should be prohibited and guidelines should be
established for the imposition of other tenant application fees.
The legislature also finds that it is important to both landlords and tenants that consumer information concerning prospective tenants is accurate.
Many tenants are unaware of their rights under federal fair credit reporting
laws to dispute information that may be inaccurate. The legislature therefore
finds and declares that it is the policy of the state for prospective tenants to
be informed of their rights to dispute information they feel is inaccurate in
order to help prevent denials of housing based upon incorrect information."
[1991 c 194 § 1.]
59.18.257
59.18.257 Screening of tenants—Costs—Notice to
tenant—Violation. (1) If a landlord uses a tenant screening
service, then the landlord may only charge for the costs
incurred for using the tenant screening service under this section. If a landlord conducts his or her own screening of tenants, then the landlord may charge his or her actual costs in
obtaining the background information, but the amount may
not exceed the customary costs charged by a screening service in the general area. The landlord's actual costs include
costs incurred for long distance phone calls and for time spent
calling landlords, employers, and financial institutions.
(2) A landlord may not charge a prospective tenant for
the cost of obtaining background information under this section unless the landlord first notifies the prospective tenant in
writing of what a tenant screening entails, the prospective
tenant's rights to dispute the accuracy of information provided by the tenant screening service or provided by the entities listed on the tenant application who will be contacted for
[Title 59 RCW—page 18]
information concerning the tenant, and the name and address
of the tenant screening service used by the landlord.
(3) Nothing in this section requires a landlord to disclose
information to a prospective tenant that was obtained from a
tenant screening service or from entities listed on the tenant
application which is not required under the federal fair credit
reporting act, 15 U.S.C. Sec. 1681 et seq.
(4) Any landlord who violates this section may be liable
to the prospective tenant for an amount not to exceed one
hundred dollars. The prevailing party may also recover court
costs and reasonable attorneys' fees. [1991 c 194 § 3.]
Findings—1991 c 194: See note following RCW 59.18.253.
59.18.260
59.18.260 Moneys paid as deposit or security for performance by tenant—Written rental agreement to specify
terms and conditions for retention by landlord—Written
checklist required. If any moneys are paid to the landlord
by the tenant as a deposit or as security for performance of the
tenant's obligations in a lease or rental agreement, the lease or
rental agreement shall be in writing and shall include the
terms and conditions under which the deposit or portion
thereof may be withheld by the landlord upon termination of
the lease or rental agreement. If all or part of the deposit may
be withheld to indemnify the landlord for damages to the premises for which the tenant is responsible, the rental agreement shall be in writing and shall so specify. No deposit may
be collected by a landlord unless the rental agreement is in
writing and a written checklist or statement specifically
describing the condition and cleanliness of or existing damages to the premises and furnishings, including, but not limited to, walls, floors, countertops, carpets, drapes, furniture,
and appliances, is provided by the landlord to the tenant at the
commencement of the tenancy. The checklist or statement
shall be signed and dated by the landlord and the tenant, and
the tenant shall be provided with a copy of the signed checklist or statement. No such deposit shall be withheld on
account of normal wear and tear resulting from ordinary use
of the premises. [1983 c 264 § 6; 1973 1st ex.s. c 207 § 26.]
59.18.270
59.18.270 Moneys paid as deposit or security for performance by tenant—Deposit by landlord in trust
account—Receipt—Claims. All moneys paid to the landlord by the tenant as a deposit as security for performance of
the tenant's obligations in a lease or rental agreement shall
promptly be deposited by the landlord in a trust account,
maintained by the landlord for the purpose of holding such
security deposits for tenants of the landlord, in a financial
institution as defined by RCW 30.22.041 or licensed escrow
agent located in Washington. Unless otherwise agreed in
writing, the landlord shall be entitled to receipt of interest
paid on such trust account deposits. The landlord shall provide the tenant with a written receipt for the deposit and shall
provide written notice of the name and address and location
of the depository and any subsequent change thereof. If during a tenancy the status of landlord is transferred to another,
any sums in the deposit trust account affected by such transfer shall simultaneously be transferred to an equivalent trust
account of the successor landlord, and the successor landlord
shall promptly notify the tenant of the transfer and of the
name, address, and location of the new depository. The ten(2004 Ed.)
Residential Landlord-Tenant Act
ant's claim to any moneys paid under this section shall be
prior to that of any creditor of the landlord, including a trustee
in bankruptcy or receiver, even if such moneys are commingled. [2004 c 136 § 1; 1975 1st ex.s. c 233 § 1; 1973 1st ex.s.
c 207 § 27.]
59.18.280
59.18.280 Moneys paid as deposit or security for performance by tenant—Statement and notice of basis for
retention—Remedies for landlord's failure to make
refund. Within fourteen days after the termination of the
rental agreement and vacation of the premises or, if the tenant
abandons the premises as defined in RCW 59.18.310, within
fourteen days after the landlord learns of the abandonment,
the landlord shall give a full and specific statement of the
basis for retaining any of the deposit together with the payment of any refund due the tenant under the terms and conditions of the rental agreement. No portion of any deposit shall
be withheld on account of wear resulting from ordinary use of
the premises. The landlord complies with this section if the
required statement or payment, or both, are deposited in the
United States mail properly addressed with first class postage
prepaid within the fourteen days.
The notice shall be delivered to the tenant personally or
by mail to his last known address. If the landlord fails to give
such statement together with any refund due the tenant within
the time limits specified above he shall be liable to the tenant
for the full amount of the deposit. The landlord is also barred
in any action brought by the tenant to recover the deposit
from asserting any claim or raising any defense for retaining
any of the deposit unless the landlord shows that circumstances beyond the landlord's control prevented the landlord
from providing the statement within the fourteen days or that
the tenant abandoned the premises as defined in RCW
59.18.310. The court may in its discretion award up to two
times the amount of the deposit for the intentional refusal of
the landlord to give the statement or refund due. In any action
brought by the tenant to recover the deposit, the prevailing
party shall additionally be entitled to the cost of suit or arbitration including a reasonable attorney's fee.
Nothing in this chapter shall preclude the landlord from
proceeding against, and the landlord shall have the right to
proceed against a tenant to recover sums exceeding the
amount of the tenant's damage or security deposit for damage
to the property for which the tenant is responsible together
with reasonable attorney's fees. [1989 c 342 § 9; 1983 c 264
§ 7; 1973 1st ex.s. c 207 § 28.]
59.18.285
59.18.285 Nonrefundable fees not to be designated as
deposit—Written rental agreement required. No moneys
paid to the landlord which are nonrefundable may be designated as a deposit or as part of any deposit. If any moneys are
paid to the landlord as a nonrefundable fee, the rental agreement shall be in writing and shall clearly specify that the fee
is nonrefundable. [1983 c 264 § 5.]
59.18.290
59.18.290 Removal or exclusion of tenant from premises—Holding over or excluding landlord from premises after termination date. (1) It shall be unlawful for the
landlord to remove or exclude from the premises the tenant
thereof except under a court order so authorizing. Any tenant
(2004 Ed.)
59.18.310
so removed or excluded in violation of this section may
recover possession of the property or terminate the rental
agreement and, in either case, may recover the actual damages sustained. The prevailing party may recover the costs of
suit or arbitration and reasonable attorney's fees.
(2) It shall be unlawful for the tenant to hold over in the
premises or exclude the landlord therefrom after the termination of the rental agreement except under a valid court order
so authorizing. Any landlord so deprived of possession of
premises in violation of this section may recover possession
of the property and damages sustained by him, and the prevailing party may recover his costs of suit or arbitration and
reasonable attorney's fees. [1973 1st ex.s. c 207 § 29.]
59.18.300
59.18.300 Termination of tenant's utility services—
Tenant causing loss of landlord provided utility services.
It shall be unlawful for a landlord to intentionally cause termination of any of his tenant's utility services, including
water, heat, electricity, or gas, except for an interruption of
utility services for a reasonable time in order to make necessary repairs. Any landlord who violates this section may be
liable to such tenant for his actual damages sustained by him,
and up to one hundred dollars for each day or part thereof the
tenant is thereby deprived of any utility service, and the prevailing party may recover his costs of suit or arbitration and a
reasonable attorney's fee. It shall be unlawful for a tenant to
intentionally cause the loss of utility services provided by the
landlord, including water, heat, electricity or gas, excepting
as resulting from the normal occupancy of the premises.
[1973 1st ex.s. c 207 § 30.]
59.18.310
59.18.310 Default in rent—Abandonment—Liability
of tenant—Landlord's remedies—Sale of tenant's property by landlord. If the tenant defaults in the payment of
rent and reasonably indicates by words or actions the intention not to resume tenancy, the tenant shall be liable for the
following for such abandonment: PROVIDED, That upon
learning of such abandonment of the premises the landlord
shall make a reasonable effort to mitigate the damages resulting from such abandonment:
(1) When the tenancy is month-to-month, the tenant shall
be liable for the rent for the thirty days following either the
date the landlord learns of the abandonment, or the date the
next regular rental payment would have become due, whichever first occurs.
(2) When the tenancy is for a term greater than month-tomonth, the tenant shall be liable for the lesser of the following:
(a) The entire rent due for the remainder of the term; or
(b) All rent accrued during the period reasonably necessary to rerent the premises at a fair rental, plus the difference
between such fair rental and the rent agreed to in the prior
agreement, plus actual costs incurred by the landlord in rerenting the premises together with statutory court costs and
reasonable attorney's fees.
In the event of such abandonment of tenancy and an
accompanying default in the payment of rent by the tenant,
the landlord may immediately enter and take possession of
any property of the tenant found on the premises and may
store the same in any reasonably secure place. A landlord
[Title 59 RCW—page 19]
59.18.312
Title 59 RCW: Landlord and Tenant
shall make reasonable efforts to provide the tenant with a
notice containing the name and address of the landlord and
the place where the property is stored and informing the tenant that a sale or disposition of the property shall take place
pursuant to this section, and the date of the sale or disposal,
and further informing the tenant of the right under RCW
59.18.230 to have the property returned prior to its sale or
disposal. The landlord's efforts at notice under this subsection
shall be satisfied by the mailing by first class mail, postage
prepaid, of such notice to the tenant's last known address and
to any other address provided in writing by the tenant or actually known to the landlord where the tenant might receive the
notice. The landlord shall return the property to the tenant
after the tenant has paid the actual or reasonable drayage and
storage costs whichever is less if the tenant makes a written
request for the return of the property before the landlord has
sold or disposed of the property. After forty-five days from
the date the notice of such sale or disposal is mailed or personally delivered to the tenant, the landlord may sell or dispose of such property, including personal papers, family pictures, and keepsakes. The landlord may apply any income
derived therefrom against moneys due the landlord, including
actual or reasonable costs whichever is less of drayage and
storage of the property. If the property has a cumulative value
of fifty dollars or less, the landlord may sell or dispose of the
property in the manner provided in this section, except for
personal papers, family pictures, and keepsakes, after seven
days from the date the notice of sale or disposal is mailed or
personally delivered to the tenant: PROVIDED, That the
landlord shall make reasonable efforts, as defined in this section, to notify the tenant. Any excess income derived from the
sale of such property under this section shall be held by the
landlord for the benefit of the tenant for a period of one year
from the date of sale, and if no claim is made or action commenced by the tenant for the recovery thereof prior to the
expiration of that period of time, the balance shall be the
property of the landlord, including any interest paid on the
income. [1991 c 220 § 1; 1989 c 342 § 10; 1983 c 264 § 8;
1973 1st ex.s. c 207 § 31.]
59.18.312
59.18.312 Writ of restitution—Storage and sale of
tenant's property—Use of proceeds from sale. (1) A landlord may, upon the execution of a writ of restitution by the
sheriff, enter and take possession of any property of the tenant found on the premises and store the property in any reasonably secure place. If, however, the tenant or the tenant's
representative objects to the storage of the property, the property shall be deposited upon the nearest public property and
may not be moved and stored by the landlord. If the tenant is
not present at the time the writ of restitution is executed, it
shall be presumed that the tenant does not object to the storage of the property as provided in this section. RCW
59.18.310 shall apply to the moving and storage of a tenant's
property when the premises are abandoned by the tenant.
(2) Property moved and stored under this section shall be
returned to the tenant after the tenant has paid the actual or
reasonable drayage and storage costs, whichever is less, or
until it is sold or disposed of by the landlord in accordance
with subsection (3) of this section.
(3) Prior to the sale or disposal of property stored pursuant to this section with a cumulative value of over fifty dol[Title 59 RCW—page 20]
lars, the landlord shall notify the tenant of the pending sale or
disposal. After forty-five days from the date the notice of the
sale or disposal is mailed or personally delivered to the tenant, the landlord may sell or dispose of the property, including personal papers, family pictures, and keepsakes.
If the property that is being stored has a cumulative value
of fifty dollars or less, then the landlord may sell or dispose
of the property in the manner provided in this section, except
for personal papers, family pictures, and keepsakes. Prior to
the sale or disposal of property stored pursuant to this section
with a cumulative value of fifty dollars or less, the landlord
shall notify the tenant of the pending sale or disposal. The
notice shall either be mailed or personally delivered to the
tenant. After seven days from the date the notice is mailed or
delivered to the tenant, the landlord may sell or dispose of the
property.
The landlord may apply any income derived from the
sale of the tenant's property against moneys due the landlord
for drayage and storage of the property. The amount of sale
proceeds that the landlord may apply towards such costs may
not exceed the actual or reasonable costs for drayage and
storage of the property, whichever is less. Any excess income
derived from the sale of such property shall be held by the
landlord for the benefit of the tenant for a period of one year
from the date of the sale. If no claim is made or action commenced by the tenant for the recovery of the excess income
prior to the expiration of that period of time, then the balance
shall be treated as abandoned property and deposited by the
landlord with the department of revenue pursuant to chapter
63.29 RCW.
(4) Nothing in this section shall be construed as creating
a right of distress for rent.
(5) When serving a tenant with a writ of restitution pursuant to RCW 59.12.100 and 59.18.410, the sheriff shall provide written notice to the tenant that: (a) Upon execution of
the writ, the landlord may store the tenant's property; (b) if
the property is stored, it may not be returned to the tenant
unless the tenant pays the actual or reasonable costs of drayage and storage, whichever is less; (c) if the tenant objects to
storage of the property, it will not be stored but will be placed
on the nearest public property; and (d) if the tenant is not
present at the time of the execution of the writ, it shall be presumed the tenant does not object to storage of the property.
[1992 c 38 § 8.]
Intent—Effective date—1992 c 38: See notes following RCW
59.18.352.
59.18.315
59.18.315 Mediation of disputes by independent
third party. The landlord and tenant may agree in writing to
submit any dispute arising under the provisions of this chapter or under the terms, conditions, or performance of the
rental agreement, to mediation by an independent third party.
The parties may agree to submit any dispute to mediation
before exercising their right to arbitration under RCW
59.18.320. [1983 c 264 § 11.]
59.18.320
59.18.320 Arbitration—Authorized—Exceptions—
Notice—Procedure. (1) The landlord and tenant may agree,
in writing, except as provided in RCW 59.18.230(2)(e), to
submit to arbitration, in conformity with the provisions of
(2004 Ed.)
Residential Landlord-Tenant Act
this section, any controversy arising under the provisions of
this chapter, except the following:
(a) Controversies regarding the existence of defects covered in subsections (1) and (2) of RCW 59.18.070: PROVIDED, That this exception shall apply only before the
implementation of any remedy by the tenant;
(b) Any situation where court action has been started by
either landlord or tenant to enforce rights under this chapter;
when the court action substantially affects the controversy,
including but not limited to:
(i) Court action pursuant to subsections (2) and (3) of
RCW 59.18.090 and subsections (1) and (2) of RCW
59.18.160; and
(ii) Any unlawful detainer action filed by the landlord
pursuant to chapter 59.12 RCW.
(2) The party initiating arbitration under subsection (1)
of this section shall give reasonable notice to the other party
or parties.
(3) Except as otherwise provided in this section, the arbitration process shall be administered by any arbitrator agreed
upon by the parties at the time the dispute arises: PROVIDED, That the procedures shall comply with the requirements of chapter 7.04 RCW (relating to arbitration) and of
this chapter. [1973 1st ex.s. c 207 § 32.]
59.18.330 Arbitration—Application—Hearings—
Decisions. (1) Unless otherwise mutually agreed to, in the
event a controversy arises under RCW 59.18.320 the landlord
or tenant, or both, shall complete an application for arbitration and deliver it to the selected arbitrator.
(2) The arbitrator so designated shall schedule a hearing
to be held no later than ten days following receipt of notice of
the controversy, except as provided in RCW 59.18.350.
(3) The arbitrator shall conduct public or private hearings. Reasonable notice of such hearings shall be given to the
parties, who shall appear and be heard either in person or by
counsel or other representative. Hearings shall be informal
and the rules of evidence prevailing in judicial proceedings
shall not be binding. A recording of the proceedings may be
taken. Any oral or documentary evidence and other data
deemed relevant by the arbitrator may be received in evidence. The arbitrator shall have the power to administer
oaths, to issue subpoenas, to require the attendance of witnesses and the production of such books, papers, contracts,
agreements, and documents as may be deemed by the arbitrator material to a just determination of the issues in dispute. If
any person refuses to obey such subpoena or refuses to be
sworn to testify, or any witness, party, or attorney is guilty of
any contempt while in attendance at any hearing held hereunder, the arbitrator may invoke the jurisdiction of any superior
court, and such court shall have jurisdiction to issue an appropriate order. A failure to obey such order may be punished by
the court as a contempt thereof.
(4) Within five days after conclusion of the hearing, the
arbitrator shall make a written decision upon the issues presented, a copy of which shall be mailed by certified mail or
otherwise delivered to the parties or their designated representatives. The determination of the dispute made by the arbitrator shall be final and binding upon both parties.
(5) If a defective condition exists which affects more
than one dwelling unit in a similar manner, the arbitrator may
59.18.352
consolidate the issues of fact common to those dwelling units
in a single proceeding.
(6) Decisions of the arbitrator shall be enforced or
appealed according to the provisions of chapter 7.04 RCW.
[1973 1st ex.s. c 207 § 33.]
59.18.340
59.18.340 Arbitration—Fee. The administrative fee
for this arbitration procedure shall be established by agreement of the parties and the arbitrator and, unless otherwise
allocated by the arbitrator, shall be shared equally by the parties: PROVIDED, That upon either party signing an affidavit
to the effect that he is unable to pay his share of the fee, that
portion of the fee may be waived or deferred. [1983 c 264 §
12; 1973 1st ex.s. c 207 § 34.]
59.18.350
59.18.350 Arbitration—Completion of arbitration
after giving notice. When a party gives notice pursuant to
subsection (2) of RCW 59.18.320, he must, at the same time,
arrange for arbitration of the grievance in the manner provided for in this chapter. The arbitration shall be completed
before the rental due date next occurring after the giving of
notice pursuant to RCW 59.18.320: PROVIDED, That in no
event shall the arbitrator have less than ten days to complete
the arbitration process. [1973 1st ex.s. c 207 § 35.]
59.18.330
(2004 Ed.)
59.18.352
59.18.352 Threatening behavior by tenant—Termination of agreement—Written notice—Financial obligations. If a tenant notifies the landlord that he or she, or
another tenant who shares that particular dwelling unit has
been threatened by another tenant, and:
(1) The threat was made with a firearm or other deadly
weapon as defined in RCW 9A.04.110; and
(2) The tenant who made the threat is arrested as a result
of the threatening behavior; and
(3) The landlord fails to file an unlawful detainer action
against the tenant who threatened another tenant within seven
calendar days after receiving notice of the arrest from a law
enforcement agency;
then the tenant who was threatened may terminate the rental
agreement and quit the premises upon written notice to the
landlord without further obligation under the rental agreement.
A tenant who terminates a rental agreement under this
section is discharged from payment of rent for any period following the quitting date, and is entitled to a pro rata refund of
any prepaid rent, and shall receive a full and specific statement of the basis for retaining any of the deposit together
with any refund due in accordance with RCW 59.18.280.
Nothing in this section shall be construed to require a
landlord to terminate a rental agreement or file an unlawful
detainer action. [1992 c 38 § 5.]
Intent—1992 c 38: "The legislature recognizes that tenants have a
number of duties under the residential landlord tenant act. These duties
include the duty to pay rent and give sufficient notice before terminating the
tenancy, the duty to pay drayage and storage costs under certain circumstances, and the duty to not create a nuisance or common waste. The legislature finds that tenants are sometimes threatened by other tenants with firearms or other deadly weapons. Some landlords refuse to evict those tenants
who threaten the well-being of other tenants even after an arrest has been
made for the threatening behavior. The legislature also finds that some tenants who hold protective orders are still subjected to threats and acts of
domestic violence. These tenants with protective orders must sometimes
[Title 59 RCW—page 21]
59.18.354
Title 59 RCW: Landlord and Tenant
move quickly so that the person being restrained does not know where they
reside. Tenants who move out of dwelling units because they fear for their
safety often forfeit their damage deposit and last month's rent because they
did not provide the requisite notice to terminate the tenancy. Some tenants
remain in unsafe situations because they cannot afford to lose the money
held as a deposit by the landlord. There is no current mechanism that authorizes the suspension of the tenant's duty to give the requisite notice before
terminating a tenancy if they are endangered by others. There also is no current mechanism that imposes a duty on the tenant to pay drayage and storage
costs when the landlord stores his or her property after an eviction. It is the
intent of the legislature to provide a mechanism for tenants who are threatened to terminate their tenancies without suffering undue economic loss, to
provide additional mechanisms to allow landlords to evict tenants who
endanger others, and to establish a mechanism for tenants to pay drayage and
storage costs under certain circumstances when the landlord stores the tenant's property after an eviction." [1992 c 38 § 1.]
Effective date—1992 c 38: "This act shall take effect June 1, 1992."
[1992 c 38 § 11.]
59.18.354
59.18.354 Threatening behavior by landlord—Termination of agreement—Financial obligations. If a tenant
is threatened by the landlord with a firearm or other deadly
weapon as defined in RCW 9A.04.110, and the threat leads to
an arrest of the landlord, then the tenant may terminate the
rental agreement and quit the premises without further obligation under the rental agreement. The tenant is discharged
from payment of rent for any period following the quitting
date, and is entitled to a pro rata refund of any prepaid rent,
and shall receive a full and specific statement of the basis for
retaining any of the deposit together with any refund due in
accordance with RCW 59.18.280. [1992 c 38 § 6.]
Intent—Effective date—1992 c 38: See notes following RCW
59.18.352.
59.18.360
59.18.360 Exemptions. A landlord and tenant may
agree, in writing, to exempt themselves from the provisions
of RCW 59.18.060, 59.18.100, 59.18.110, 59.18.120,
59.18.130, and 59.18.190 if the following conditions have
been met:
(1) The agreement may not appear in a standard form
lease or rental agreement;
(2) There is no substantial inequality in the bargaining
position of the two parties;
(3) The exemption does not violate the public policy of
this state in favor of the ensuring safe, and sanitary housing;
and
(4) Either the local county prosecutor's office or the consumer protection division of the attorney general's office or
the attorney for the tenant has approved in writing the application for exemption as complying with subsections (1)
through (3) of this section. [1973 1st ex.s. c 207 § 36.]
59.18.365
59.18.365 Unlawful detainer action—Summons—
Form. The summons for unlawful detainer actions for tenancies covered by this chapter shall be substantially in the following form. In unlawful detainer actions based on nonpayment of rent, the summons may contain the provisions authorized by RCW 59.18.375.
IN THE SUPERIOR COURT OF THE STATE OF
WASHINGTON IN AND FOR . . . . . . COUNTY
[Title 59 RCW—page 22]
Plaintiff,
vs.
Defendant.







NO.
EVICTION SUMMONS
(Residential)
THIS IS NOTICE OF A LAWSUIT TO EVICT YOU.
PLEASE READ IT CAREFULLY.
THE DEADLINE FOR YOUR WRITTEN
RESPONSE IS:
5:00 p.m., on . . . . . . . . .
TO: . . . . . . . . . . . . . . . . . . . . . . . . (Name)
. . . . . . . . . . . . . . . . . . . . . . . (Address)
This is notice of a lawsuit to evict you from the property
which you are renting. Your landlord is asking the court to
terminate your tenancy, direct the sheriff to remove you and
your belongings from the property, enter a money judgment
against you for unpaid rent and/or damages for your use of
the property, and for court costs and attorneys' fees.
If you want to defend yourself in this lawsuit, you must
respond to the eviction complaint in writing on or before the
deadline stated above. You must respond in writing even if
no case number has been assigned by the court yet.
You can respond to the complaint in writing by delivering a copy of a notice of appearance or answer to your landlord's attorney (or your landlord if there is no attorney) to be
received no later than the deadline stated above.
The notice of appearance or answer must include the
name of this case (plaintiff(s) and defendant(s)), your name,
the street address where further legal papers may be sent,
your telephone number (if any), and your signature.
If there is a number on the upper right side of the eviction
summons and complaint, you must also file your original
notice of appearance or answer with the court clerk by the
deadline for your written response.
You may demand that the plaintiff file this lawsuit with
the court. If you do so, the demand must be in writing and
must be served upon the person signing the summons. Within
fourteen days after you serve the demand, the plaintiff must
file this lawsuit with the court, or the service on you of this
summons and complaint will be void.
If you wish to seek the advice of an attorney in this matter, you should do so promptly so that your written response,
if any, may be served on time.
You may also be instructed in a separate order to appear
for a court hearing on your eviction. If you receive an order to
show cause you must personally appear at the hearing on the
date indicated in the order to show cause in addition to delivering and filing your notice of appearance or answer by the
deadline stated above.
IF YOU DO NOT RESPOND TO THE COMPLAINT IN WRITING BY THE DEADLINE
STATED ABOVE YOU WILL LOSE BY
DEFAULT. YOUR LANDLORD MAY PROCEED WITH THE LAWSUIT, EVEN IF YOU
HAVE MOVED OUT OF THE PROPERTY.
The notice of appearance or answer must be delivered to:
(2004 Ed.)
Residential Landlord-Tenant Act
.......................
Name
.......................
Address
.......................
Telephone Number
[1989 c 342 § 15.]
59.18.370
59.18.370 Forcible entry or detainer or unlawful
detainer actions—Writ of restitution—Application—
Order—Hearing. The plaintiff, at the time of commencing
an action of forcible entry or detainer or unlawful detainer, or
at any time afterwards, upon filing the complaint, may apply
to the superior court in which the action is pending for an
order directing the defendant to appear and show cause, if
any he has, why a writ of restitution should not issue restoring
to the plaintiff possession of the property in the complaint
described, and the judge shall by order fix a time and place
for a hearing of said motion, which shall not be less than six
nor more than twelve days from the date of service of said
order upon defendant. A copy of said order, together with a
copy of the summons and complaint if not previously served
upon the defendant, shall be served upon the defendant. Said
order shall notify the defendant that if he fails to appear and
show cause at the time and place specified by the order the
court may order the sheriff to restore possession of the property to the plaintiff and may grant such other relief as may be
prayed for in the complaint and provided by this chapter.
[1973 1st ex.s. c 207 § 38.]
59.18.375
59.18.375 Forcible entry or detainer or unlawful
detainer actions—Payment of rent into court registry—
Writ of restitution—Notice. (1) The remedies provided by
this section are in addition to other remedies provided by this
chapter.
(2) In an action of forcible entry, detainer, or unlawful
detainer, commenced under this chapter which is based upon
nonpayment of rent as provided in RCW 59.12.030(3), the
defendant shall pay into the court registry the amount alleged
due in the complaint and continue to pay into the court registry the monthly rent as it becomes due under the terms of the
rental agreement while the action is pending. If the defendant
submits to the court a written statement signed and sworn
under penalty of perjury denying that the rent alleged due in
the complaint is owing based upon a legal or equitable
defense or set-off arising out of the tenancy, such payment
shall not be required.
(3) A defendant must comply with subsection (2) of this
section within seven days after completed service of a filed
summons and complaint or, in the case of service of an
unfiled summons and complaint, seven days after delivering
written notice to the defendant, in the manner provided in
RCW 59.12.040, advising the defendant of the date of filing,
the cause number for the action, and the date by which the
defendant must comply with this section to avoid the immediate issuance of a writ of restitution. Failure of the defendant
to comply with this section shall be grounds for the immediate issuance of a writ of restitution without bond directing the
sheriff to deliver possession of the premises to the plaintiff.
Issuance of a writ of restitution under this section shall not
(2004 Ed.)
59.18.380
affect the defendant's right to a hearing to contest the amount
of rent alleged to be due.
(4) The defendant shall send written notice that the rent
has been paid into the court registry or send a copy of the
sworn statement referred to in subsection (2) of this section to
the address of the person whose name is signed on the unlawful detainer summons.
(5) Before applying to the court for a writ of restitution
under this section, the plaintiff must check with the clerk of
the court to determine if the defendant has complied with
subsection (2) of this section.
(6) If the plaintiff intends to use the procedures in this
section, the summons must contain notice to the defendant of
the payment requirements of this section and be substantially
in the following form:
NOTICE
This unlawful detainer action is based upon nonpayment of
rent in an amount alleged to be $. . . . . . The plaintiff is entitled to an order from the court directing the sheriff to evict
you without a hearing unless you pay into the court registry
the amount of delinquent rent alleged to be due in the complaint and continue paying into the court registry the monthly
rent as it becomes due while this lawsuit is pending. If you
deny that you owe the rent claimed to be due and you do not
want to be evicted immediately without a hearing, you must
file with the clerk of the court a written statement signed and
sworn under penalty of perjury setting forth why you do not
owe the amount claimed in the complaint to be due. The
sworn statement must be filed IN ADDITION TO your written answer to the complaint.
Payment or the sworn statement must be submitted to the
clerk of the superior court within seven days after you have
been served with this summons or, if the summons has not yet
been filed, within seven days after service of written notice
that the lawsuit has been filed.
This complaint:
( ) is filed with the superior court;
( ) is not filed. The plaintiff must notify you in writing when
it is filed.
IMPORTANT
If you intend to contest this action, you must also file a
written answer as indicated above on this summons.
[1983 c 264 § 13.]
59.18.380
59.18.380 Forcible entry or detainer or unlawful
detainer actions—Writ of restitution—Answer—
Order—Stay—Bond. At the time and place fixed for the
hearing of plaintiff's motion for a writ of restitution, the
defendant, or any person in possession or claiming possession of the property, may answer, orally or in writing, and
assert any legal or equitable defense or set-off arising out of
the tenancy. If the answer is oral the substance thereof shall
be endorsed on the complaint by the court. The court shall
examine the parties and witnesses orally to ascertain the merits of the complaint and answer, and if it shall appear that the
plaintiff has the right to be restored to possession of the property, the court shall enter an order directing the issuance of a
[Title 59 RCW—page 23]
59.18.390
Title 59 RCW: Landlord and Tenant
writ of restitution, returnable ten days after its date, restoring
to the plaintiff possession of the property and if it shall appear
to the court that there is no substantial issue of material fact
of the right of the plaintiff to be granted other relief as prayed
for in the complaint and provided for in this chapter, the court
may enter an order and judgment granting so much of such
relief as may be sustained by the proof, and the court may
grant such other relief as may be prayed for in the plaintiff's
complaint and provided for in this chapter, then the court
shall enter an order denying any relief sought by the plaintiff
for which the court has determined that the plaintiff has no
right as a matter of law: PROVIDED, That within three days
after the service of the writ of restitution the defendant, or
person in possession of the property, may, in any action for
the recovery of possession of the property for failure to pay
rent, stay the execution of the writ pending final judgment by
paying into court or to the plaintiff, as the court directs, all
rent found to be due and all the costs of the action, and in
addition by paying, on a monthly basis pending final judgment, an amount equal to the monthly rent called for by the
lease or rental agreement at the time the complaint was filed:
PROVIDED FURTHER, That before any writ shall issue
prior to final judgment the plaintiff shall execute to the defendant and file in the court a bond in such sum as the court may
order, with sufficient surety to be approved by the clerk, conditioned that the plaintiff will prosecute his action without
delay, and will pay all costs that may be adjudged to the
defendant, and all damages which he may sustain by reason
of the writ of restitution having been issued, should the same
be wrongfully sued out. The court shall also enter an order
directing the parties to proceed to trial on the complaint and
answer in the usual manner.
If it appears to the court that the plaintiff should not be
restored to possession of the property, the court shall deny
plaintiff's motion for a writ of restitution and enter an order
directing the parties to proceed to trial within thirty days on
the complaint and answer. If it appears to the court that there
is a substantial issue of material fact as to whether or not the
plaintiff is entitled to other relief as is prayed for in plaintiff's
complaint and provided for in this chapter, or that there is a
genuine issue of a material fact pertaining to a legal or equitable defense or set-off raised in the defendant's answer, the
court shall grant or deny so much of plaintiff's other relief
sought and so much of defendant's defenses or set-off
claimed, as may be proper. [1973 1st ex.s. c 207 § 39.]
59.18.390
59.18.390 Forcible entry or detainer or unlawful
detainer actions—Writ of restitution—Service—Defendant's bond. (1) The sheriff shall, upon receiving the writ of
restitution, forthwith serve a copy thereof upon the defendant, his or her agent, or attorney, or a person in possession of
the premises, and shall not execute the same for three days
thereafter, and the defendant, or person in possession of the
premises within three days after the service of the writ of restitution may execute to the plaintiff a bond to be filed with
and approved by the clerk of the court in such sum as may be
fixed by the judge, with sufficient surety to be approved by
the clerk of the court, conditioned that they will pay to the
plaintiff such sum as the plaintiff may recover for the use and
occupation of the premises, or any rent found due, together
with all damages the plaintiff may sustain by reason of the
[Title 59 RCW—page 24]
defendant occupying or keeping possession of the premises,
together with all damages which the court theretofore has
awarded to the plaintiff as provided in this chapter, and also
all the costs of the action. The plaintiff, his or her agent or
attorneys, shall have notice of the time and place where the
court or judge thereof shall fix the amount of the defendant's
bond, and shall have notice and a reasonable opportunity to
examine into the qualification and sufficiency of the sureties
upon the bond before the bond shall be approved by the clerk.
After the issuance of a writ of restitution, acceptance of a
payment by the landlord or plaintiff that only partially satisfies the judgment will not invalidate the writ unless pursuant
to a written agreement executed by both parties. The eviction
will not be postponed or stopped unless a copy of that written
agreement is provided to the sheriff. It is the responsibility of
the tenant or defendant to ensure a copy of the agreement is
provided to the sheriff. Upon receipt of the agreement the
sheriff will cease action unless ordered to do otherwise by the
court. The writ of restitution and the notice that accompanies
the writ of restitution required under RCW 59.18.312 shall
conspicuously state in bold face type, all capitals, not less
than twelve points information about partial payments as set
forth in subsection (2) of this section. If the writ of restitution
has been based upon a finding by the court that the tenant,
subtenant, sublessee, or a person residing at the rental premises has engaged in drug-related activity or has allowed any
other person to engage in drug-related activity at those premises with his or her knowledge or approval, neither the tenant, the defendant, nor a person in possession of the premises
shall be entitled to post a bond in order to retain possession of
the premises. The writ may be served by the sheriff, in the
event he or she shall be unable to find the defendant, an agent
or attorney, or a person in possession of the premises, by
affixing a copy of the writ in a conspicuous place upon the
premises: PROVIDED, That the sheriff shall not require any
bond for the service or execution of the writ. The sheriff shall
be immune from all civil liability for serving and enforcing
writs of restitution unless the sheriff is grossly negligent in
carrying out his or her duty.
(2) The notice accompanying a writ of restitution
required under RCW 59.18.312 shall be substantially similar
to the following:
IMPORTANT NOTICE - PARTIAL PAYMENTS
YOUR LANDLORD'S ACCEPTANCE OF A PARTIAL PAYMENT FROM YOU AFTER SERVICE OF
THIS WRIT OF RESTITUTION WILL NOT AUTOMATICALLY POSTPONE OR STOP YOUR EVICTION. IF YOU HAVE A WRITTEN AGREEMENT
WITH YOUR LANDLORD THAT THE EVICTION
WILL BE POSTPONED OR STOPPED, IT IS YOUR
RESPONSIBILITY TO PROVIDE A COPY OF THE
AGREEMENT TO THE SHERIFF. THE SHERIFF
WILL NOT CEASE ACTION UNLESS YOU PROVIDE
A COPY OF THE AGREEMENT. AT THE DIRECTION OF THE COURT THE SHERIFF MAY TAKE
FURTHER ACTION.
[1997 c 255 § 1; 1989 c 342 § 11; 1988 c 150 § 3; 1973 1st
ex.s. c 207 § 40.]
(2004 Ed.)
Residential Landlord-Tenant Act
Legislative findings—Severability—1988 c 150: See notes following
RCW 59.18.130.
59.18.400
59.18.400 Forcible entry or detainer or unlawful
detainer actions—Writ of restitution—Answer of defendant. On or before the day fixed for his appearance the
defendant may appear and answer. The defendant in his
answer may assert any legal or equitable defense or set-off
arising out of the tenancy. If the complaint alleges that the
tenancy should be terminated because the defendant tenant,
subtenant, sublessee, or resident engaged in drug-related
activity, or allowed any other person to engage in drugrelated activity at the rental premises with his or her knowledge or consent, no set-off shall be allowed as a defense to
the complaint. [1988 c 150 § 4; 1973 1st ex.s. c 207 § 41.]
Legislative findings—Severability—1988 c 150: See notes following
RCW 59.18.130.
59.18.410
59.18.410 Forcible entry or detainer or unlawful
detainer actions—Writ of restitution—Judgment—Execution. If upon the trial the verdict of the jury or, if the case
be tried without a jury, the finding of the court be in favor of
the plaintiff and against the defendant, judgment shall be
entered for the restitution of the premises; and if the proceeding be for unlawful detainer after neglect or failure to perform
any condition or covenant of a lease or agreement under
which the property is held, or after default in the payment of
rent, the judgment shall also declare the forfeiture of the
lease, agreement or tenancy. The jury, or the court, if the proceedings be tried without a jury, shall also assess the damages
arising out of the tenancy occasioned to the plaintiff by any
forcible entry, or by any forcible or unlawful detainer, alleged
in the complaint and proved on the trial, and, if the alleged
unlawful detainer be after default in the payment of rent, find
the amount of any rent due, and the judgment shall be rendered against the defendant guilty of the forcible entry, forcible detainer or unlawful detainer for the amount of damages
thus assessed and for the rent, if any, found due, and the court
may award statutory costs and reasonable attorney's fees.
When the proceeding is for an unlawful detainer after default
in the payment of rent, and the lease or agreement under
which the rent is payable has not by its terms expired, execution upon the judgment shall not be issued until the expiration
of five days after the entry of the judgment, within which
time the tenant or any subtenant, or any mortgagee of the
term, or other party interested in the continuance of the tenancy, may pay into court for the landlord the amount of the
judgment and costs, and thereupon the judgment shall be satisfied and the tenant restored to his tenancy; but if payment,
as herein provided, be not made within five days the judgment may be enforced for its full amount and for the possession of the premises. In all other cases the judgment may be
enforced immediately. If writ of restitution shall have been
executed prior to judgment no further writ or execution for
the premises shall be required. [1973 1st ex.s. c 207 § 42.]
59.18.415
59.18.415 Applicability to certain single family
dwelling leases. The provisions of this chapter shall not
apply to any lease of a single family dwelling for a period of
a year or more or to any lease of a single family dwelling containing a bona fide option to purchase by the tenant: PRO(2004 Ed.)
59.18.440
VIDED, That an attorney for the tenant must approve on the
face of the agreement any lease exempted from the provisions
of this chapter as provided for in this section. [1989 c 342 §
12; 1973 1st ex.s. c 207 § 43.]
59.18.420
59.18.420 RCW 59.12.090, 59.12.100, 59.12.121, and
59.12.170 inapplicable. The provisions of RCW 59.12.090,
59.12.100, 59.12.121, and 59.12.170 shall not apply to any
rental agreement included under the provisions of chapter
59.18 RCW. [1973 1st ex.s. c 207 § 44.]
59.18.430
59.18.430 Applicability to prior, existing or future
leases. RCW 59.18.010 through 59.18.360 and 59.18.900
shall not apply to any lease entered into prior to July 16,
1973. All provisions of this chapter shall apply to any lease or
periodic tenancy entered into on or subsequent to July 16,
1973. [1973 1st ex.s. c 207 § 47.]
59.18.440
59.18.440 Relocation assistance for low-income tenants—Certain cities, towns, counties, municipal corporations authorized to require. (1) Any city, town, county, or
municipal corporation that is required to develop a comprehensive plan under RCW 36.70A.040(1) is authorized to
require, after reasonable notice to the public and a public
hearing, property owners to provide their portion of reasonable relocation assistance to low-income tenants upon the
demolition, substantial rehabilitation whether due to code
enforcement or any other reason, or change of use of residential property, or upon the removal of use restrictions in an
assisted-housing development. No city, town, county, or
municipal corporation may require property owners to provide relocation assistance to low-income tenants, as defined
in this chapter, upon the demolition, substantial rehabilitation, upon the change of use of residential property, or upon
the removal of use restrictions in an assisted-housing development, except as expressly authorized herein or when authorized or required by state or federal law. As used in this section, "assisted housing development" means a multifamily
rental housing development that either receives government
assistance and is defined as federally assisted housing in
RCW 59.28.020, or that receives other federal, state, or local
government assistance and is subject to use restrictions.
(2) As used in this section, "low-income tenants" means
tenants whose combined total income per dwelling unit is at
or below fifty percent of the median income, adjusted for
family size, in the county where the tenants reside.
The department of community, trade, and economic
development shall adopt rules defining county median
income in accordance with the definitions promulgated by
the federal department of housing and urban development.
(3) A requirement that property owners provide relocation assistance shall include the amounts of such assistance to
be provided to low-income tenants. In determining such
amounts, the jurisdiction imposing the requirement shall
evaluate, and receive public testimony on, what relocation
expenses displaced tenants would reasonably incur in that
jurisdiction including:
(a) Actual physical moving costs and expenses;
[Title 59 RCW—page 25]
59.18.450
Title 59 RCW: Landlord and Tenant
(b) Advance payments required for moving into a new
residence such as the cost of first and last month's rent and
security and damage deposits;
(c) Utility connection fees and deposits; and
(d) Anticipated additional rent and utility costs in the residence for one year after relocation.
(4)(a) Relocation assistance provided to low-income tenants under this section shall not exceed two thousand dollars
for each dwelling unit displaced by actions of the property
owner under subsection (1) of this section. A city, town,
county, or municipal corporation may make future annual
adjustments to the maximum amount of relocation assistance
required under this subsection in order to reflect any changes
in the housing component of the consumer price index as
published by the United States department of labor, bureau of
labor statistics.
(b) The property owner's portion of any relocation assistance provided to low-income tenants under this section shall
not exceed one-half of the required relocation assistance
under (a) of this subsection in cash or services.
(c) The portion of relocation assistance not covered by
the property owner under (b) of this subsection shall be paid
by the city, town, county, or municipal corporation authorized to require relocation assistance under subsection (1) of
this section. The relocation assistance may be paid from proceeds collected from the excise tax imposed under RCW
82.46.010.
(5) A city, town, county, or municipal corporation
requiring the provision of relocation assistance under this
section shall adopt policies, procedures, or regulations to
implement such requirement. Such policies, procedures, or
regulations shall include provisions for administrative hearings to resolve disputes between tenants and property owners
relating to relocation assistance or unlawful detainer actions
during relocation, and shall require a decision within thirty
days of a request for a hearing by either a tenant or property
owner.
Judicial review of an administrative hearing decision
relating to relocation assistance may be had by filing a petition, within ten days of the decision, in the superior court in
the county where the residential property is located. Judicial
review shall be confined to the record of the administrative
hearing and the court may reverse the decision only if the
administrative findings, inferences, conclusions, or decision
is:
(a) In violation of constitutional provisions;
(b) In excess of the authority or jurisdiction of the
administrative hearing officer;
(c) Made upon unlawful procedure or otherwise is contrary to law; or
(d) Arbitrary and capricious.
(6) Any city, town, county, or municipal corporation
may require relocation assistance, under the terms of this section, for otherwise eligible tenants whose living arrangements are exempted from the provisions of this chapter under
RCW 59.18.040(3) and if the living arrangement is considered to be a rental or lease not defined as a retail sale under
RCW 82.04.050.
(7)(a) Persons who move from a dwelling unit prior to
the application by the owner of the dwelling unit for any governmental permit necessary for the demolition, substantial
[Title 59 RCW—page 26]
rehabilitation, or change of use of residential property or
prior to any notification or filing required for condominium
conversion shall not be entitled to the assistance authorized
by this section.
(b) Persons who move into a dwelling unit after the
application for any necessary governmental permit or after
any required condominium conversion notification or filing
shall not be entitled to the assistance authorized by this section if such persons receive written notice from the property
owner prior to taking possession of the dwelling unit that specifically describes the activity or condition that may result in
their temporary or permanent displacement and advises them
of their ineligibility for relocation assistance. [1997 c 452 §
17; 1995 c 399 § 151; 1990 1st ex.s. c 17 § 49.]
Intent—Severability—1997 c 452: See notes following RCW
67.28.080.
Savings—1997 c 452: See note following RCW 67.28.181.
Severability—Part, section headings not law—1990 1st ex.s. c 17:
See RCW 36.70A.900 and 36.70A.901.
59.18.450
59.18.450 Relocation assistance for low-income tenants—Payments not considered income—Eligibility for
other assistance not affected. Relocation assistance payments received by tenants under *RCW 59.18.440 shall not
be considered as income or otherwise affect the eligibility for
or amount of assistance paid under any government benefit
program. [1990 1st ex.s. c 17 § 50.]
*Reviser's note: The reference in 1990 1st ex.s. c 17 § 50 to "section
50 of this act" is apparently erroneous and has been translated to RCW
59.18.440, which was 1990 1st ex.s. c 17 § 49.
Severability—Part, section headings not law—1990 1st ex.s. c 17:
See RCW 36.70A.900 and 36.70A.901.
59.18.500
59.18.500 Gang-related activity—Legislative findings, declarations, and intent. The legislature finds and
declares that the ability to feel safe and secure in one's own
home and in one's own community is of primary importance.
The legislature recognizes that certain gang-related activity
can affect the safety of a considerable number of people in
the rental premises and dwelling units. Therefore, such activity, although it may be occurring within an individual's home
or the surrounding areas of an individual's home, becomes the
community's concern.
The legislature intends that the remedy provided in RCW
59.18.510 be used solely to protect the health and safety of
the community. The remedy is not a means for private citizens to bring malicious or unfounded actions against fellow
tenants or residential neighbors for personal reasons. In determining whether the tenant's activity is the type prohibited
under RCW 59.18.130(9), the court should consider the totality of the circumstances, including factors such as whether
there have been numerous complaints to the landlord, damage to property, police or incident reports, reports of disturbance, and arrests. An absence of any or all of these factors
does not necessarily mean gang activity is not occurring. In
determining whether the tenant is engaging in gang-related
activity, the court should consider the purpose and intent of
RCW 59.18.510. The legislature intends to give people in the
community a tool that will help them restore the health and
vibrance of their community. [1998 c 276 § 4.]
(2004 Ed.)
Residential Landlord-Tenant Act
59.18.510
59.18.510 Gang-related activity—Notice and
demand the landlord commence unlawful detainer
action—Petition to court—Attorneys' fees. (1)(a) Any
person whose life, safety, health, or use of property is being
injured or endangered by a tenant's gang-related activity, who
has legal standing and resides, works in, or owns property in
the same multifamily building, apartment complex, or within
a one-block radius may serve the landlord with a ten-day
notice and demand that the landlord commence an unlawful
detainer action against the tenant. The notice and demand
must set forth, in reasonable detail, facts and circumstances
that lead the person to believe gang-related activity is occurring. The notice and demand shall be served by delivering a
copy personally to the landlord or the landlord's agent. If the
person is unable to personally serve the landlord after exercising due diligence, the person may deposit the notice and
demand in the mail, postage prepaid, to the landlord's or the
landlord's agent's last known address.
(b) A copy of the notice and demand must also be served
upon the tenant engaging in the gang-related activity by
delivering a copy personally to the tenant. However, if the
person is prevented from personally serving the tenant due to
threats or violence, or if personal service is not reasonable
under the circumstances, the person may deposit the notice
and demand in the mail, postage prepaid, to the tenant's
address, or leave a copy of the notice and demand in a conspicuous location at the tenant's residence.
(2)(a) Within ten days from the time the notice and
demand is served, the landlord has a duty to take reasonable
steps to investigate the tenant's alleged noncompliance with
RCW 59.18.130(9). The landlord must notify the person who
brought the notice and demand that an investigation is occurring. The landlord has ten days from the time he or she notifies the person in which to conduct a reasonable investigation.
(b) If, after reasonable investigation, the landlord finds
that the tenant is not in compliance with RCW 59.18.130(9),
the landlord may proceed directly to an unlawful detainer
action or take reasonable steps to ensure the tenant discontinues the prohibited activity and complies with RCW
59.18.130(9). The landlord shall notify the person who
served the notice and demand of whatever action the landlord
takes.
(c) If, after reasonable investigation, the landlord finds
that the tenant is in compliance with RCW 59.18.130(9), the
landlord shall notify the person who served the notice and
demand of the landlord's findings.
(3) The person who served the notice and demand may
petition the appropriate court to have the tenancy terminated
and the tenant removed from the premises if: (a) Within ten
days of service of the notice and demand, the tenant fails to
discontinue the gang-related activity and the landlord fails to
conduct a reasonable investigation; or (b) the landlord notifies the person that the landlord conducted a reasonable
investigation and found that the tenant was not engaged in
gang-related activity as prohibited under RCW 59.18.130(9);
or (c) the landlord took reasonable steps to have the tenant
comply with RCW 59.18.130(9), but the tenant has failed to
comply within a reasonable time.
(4) If the court finds that the tenant was not in compliance with RCW 59.18.130(9), the court shall enter an order
(2004 Ed.)
59.18.550
terminating the tenancy and requiring the tenant to vacate the
premises. The court shall not issue the order terminating the
tenancy unless it has found that the allegations of gangrelated activity are corroborated by a source other than the
person who has petitioned the court.
(5) The prevailing party shall recover reasonable attorneys' fees and costs. The court may impose sanctions, in addition to attorneys' fees, on a person who has brought an action
under this chapter against the same tenant on more than one
occasion, if the court finds the petition was brought with the
intent to harass. However, the court must order the landlord
to pay costs and reasonable attorneys' fees to the person petitioning for termination of the tenancy if the court finds that
the landlord failed to comply with the duty to investigate,
regardless of which party prevails. [1998 c 276 § 5.]
59.18.550 Drug and alcohol free housing—Program
of recovery—Terms—Application of chapter. (1) For the
purpose of this section, "drug and alcohol free housing"
requires a rental agreement and means a dwelling in which:
(a) Each of the dwelling units on the premises is occupied or held for occupancy by at least one tenant who is a
recovering alcoholic or drug addict and is participating in a
program of recovery;
(b) The landlord is a nonprofit corporation incorporated
under Title 24 RCW, a corporation for profit incorporated
under Title 23B RCW, or a housing authority created under
chapter 35.82 RCW, and is providing federally assisted housing as defined in chapter 59.28 RCW;
(c) The landlord provides:
(i) A drug and alcohol free environment, covering all
tenants, employees, staff, agents of the landlord, and guests;
(ii) An employee who monitors the tenants for compliance with the requirements of (d) of this subsection;
(iii) Individual and group support for recovery; and
(iv) Access to a specified program of recovery; and
(d) The rental agreement is in writing and includes the
following provisions:
(i) The tenant may not use, possess, or share alcohol, illegal drugs, controlled substances, or prescription drugs without a medical prescription, either on or off the premises;
(ii) The tenant may not allow the tenant's guests to use,
possess, or share alcohol, illegal drugs, controlled substances,
or prescription drugs without a medical prescription, on the
premises;
(iii) The tenant must participate in a program of recovery, which specific program is described in the rental agreement;
(iv) On at least a quarterly basis the tenant must provide
written verification from the tenant's program of recovery
that the tenant is participating in the program of recovery and
the tenant has not used alcohol or illegal drugs;
(v) The landlord has the right to require the tenant to take
a urine analysis test regarding drug or alcohol usage, at the
landlord's discretion and expense; and
(vi) The landlord has the right to terminate the tenant's
tenancy by delivering a three-day notice to terminate with
one day to comply, if a tenant living in drug and alcohol free
housing uses, possesses, or shares alcohol, illegal drugs, controlled substances, or prescription drugs without a medical
prescription.
59.18.550
[Title 59 RCW—page 27]
59.18.570
Title 59 RCW: Landlord and Tenant
(2) For the purpose of this section, "program of recovery" means a verifiable program of counseling and rehabilitation treatment services, including a written plan, to assist
recovering alcoholics or drug addicts to recover from their
addiction to alcohol or illegal drugs while living in drug and
alcohol free housing. A "program of recovery" includes
Alcoholics Anonymous, Narcotics Anonymous, and similar
programs.
(3) If a tenant living for less than two years in drug and
alcohol free housing uses, possesses, or shares alcohol, illegal
drugs, controlled substances, or prescription drugs without a
medical prescription, the landlord may deliver a written
notice to the tenant terminating the tenancy for cause as provided in this subsection. The notice must specify the acts
constituting the drug or alcohol violation and must state that
the rental agreement terminates in not less than three days
after delivery of the notice, at a specified date and time. The
notice must also state that the tenant can cure the drug or
alcohol violation by a change in conduct or otherwise within
one day after delivery of the notice. If the tenant cures the
violation within the one-day period, the rental agreement
does not terminate. If the tenant does not cure the violation
within the one-day period, the rental agreement terminates as
provided in the notice. If substantially the same act that constituted a prior drug or alcohol violation of which notice was
given reoccurs within six months, the landlord may terminate
the rental agreement upon at least three days' written notice
specifying the violation and the date and time of termination
of the rental agreement. The tenant does not have a right to
cure this subsequent violation.
(4) Notwithstanding subsections (1), (2), and (3) of this
section, federally assisted housing that is occupied on other
than a transient basis by persons who are required to abstain
from possession or use of alcohol or drugs as a condition of
occupancy and who pay for the use of the housing on a periodic basis, without regard to whether the payment is characterized as rent, program fees, or other fees, costs, or charges,
are covered by this chapter unless the living arrangement is
exempt under RCW 59.18.040. [2003 c 382 § 1.]
59.18.570 Victim protection—Definitions. The definitions in this section apply throughout this section and RCW
59.18.575 through 59.18.585 unless the context clearly
requires otherwise.
(1) "Domestic violence" has the same meaning as set
forth in RCW 26.50.010.
(2) "Sexual assault" has the same meaning as set forth in
RCW 70.125.030.
(3) "Stalking" has the same meaning as set forth in RCW
9A.46.110.
(4) "Qualified third party" means any of the following
people acting in their official capacity:
(a) Law enforcement officers;
(b) Persons subject to the provisions of chapter 18.120
RCW;
(c) Employees of a court of the state;
(d) Licensed mental health professionals or other
licensed counselors;
(e) Employees of crime victim/witness programs as
defined in RCW 7.69.020 who are trained advocates for the
program; and
59.18.570
[Title 59 RCW—page 28]
(f) Members of the clergy as defined in RCW 26.44.020.
(5) "Household member" means a child or adult residing
with the tenant other than the perpetrator of domestic violence, stalking, or sexual assault.
(6) "Tenant screening service provider" means any nongovernmental agency that provides, for a fee, background
information on prospective tenants to landlords.
(7) "Credit reporting agency" has the same meaning as
set forth in RCW 19.182.010(5). [2004 c 17 § 2.]
Findings—Intent—2004 c 17: "The legislature finds and declares that:
(1) Domestic violence, sexual assault, and stalking are widespread
societal problems that have devastating effects for individual victims, their
children, and their communities. Victims of violence may be forced to
remain in unsafe situations because they are bound by residential lease
agreements. The legislature finds that the inability of victims to terminate
their rental agreements hinders or prevents victims from being able to safely
flee domestic violence, sexual assault, or stalking. The legislature further
finds that victims of these crimes who do not have access to safe housing are
more likely to remain in or return to abusive or dangerous situations. Also,
the legislature finds that victims of these crimes are further victimized when
they are unable to obtain or retain rental housing due to their history as a victim of these crimes. The legislature further finds that evidence that a prospective tenant has been a victim of domestic violence, sexual assault, or
stalking is not relevant to the decision whether to rent to that prospective tenant.
(2) By this act, the legislature intends to increase safety for victims of
domestic violence, sexual assault, and stalking by removing barriers to
safety and offering protection against discrimination." [2004 c 17 § 1.]
Effective date—2004 c 17: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately
[March 15, 2004]." [2004 c 17 § 7.]
59.18.575 Victim protection—Notice to landlord—
Termination of rental agreement—Procedures. (1)(a) If a
tenant notifies the landlord in writing that he or she or a
household member was a victim of an act that constitutes a
crime of domestic violence, sexual assault, or stalking, and
either (a)(i) or (ii) of this subsection applies, then subsection
(2) of this section applies:
(i) The tenant or the household member has a valid order
for protection under one or more of the following: Chapter
26.50 or 26.26 RCW or RCW 9A.46.040, 9A.46.050,
10.14.080, 10.99.040 (2) or (3), or 26.09.050; or
(ii) The tenant or the household member has reported the
domestic violence, sexual assault, or stalking to a qualified
third party acting in his or her official capacity and the qualified third party has provided the tenant or the household
member a written record of the report signed by the qualified
third party.
(b) When a copy of a valid order for protection or a written record of a report signed by a qualified third party, as
required under (a) of this subsection, is made available to the
landlord, the tenant may terminate the rental agreement and
quit the premises without further obligation under the rental
agreement or under chapter 59.12 RCW. However, the
request to terminate the rental agreement must occur within
ninety days of the reported act, event, or circumstance that
gave rise to the protective order or report to a qualified third
party. A record of the report to a qualified third party that is
provided to the tenant or household member shall consist of a
document signed and dated by the qualified third party stating: (i) That the tenant or the household member notified him
or her that he or she was a victim of an act or acts that constitute a crime of domestic violence, sexual assault, or stalking;
59.18.575
(2004 Ed.)
Residential Landlord-Tenant Act
(ii) the time and date the act or acts occurred; (iii) the location
where the act or acts occurred; (iv) a brief description of the
act or acts of domestic violence, sexual assault, or stalking;
and (v) that the tenant or household member informed him or
her of the name of the alleged perpetrator of the act or acts.
The record of the report provided to the tenant or household
member shall not include the name of the alleged perpetrator
of the act or acts of domestic violence, sexual assault, or
stalking. The qualified third party shall keep a copy of the
record of the report and shall note on the retained copy the
name of the alleged perpetrator of the act or acts of domestic
violence, sexual assault, or stalking. The record of the report
to a qualified third party may be accomplished by completion
of a form provided by the qualified third party, in substantially the following form:
[Name of organization, agency, clinic, professional service
provider]
I and/or my . . . . . . (household member) am/is a victim
of
. . . domestic violence as defined by RCW
26.50.010.
. . . sexual assault as defined by RCW
70.125.030.
. . . stalking as defined by RCW 9A.46.110.
Briefly describe the incident of domestic violence, sexual assault, or stalking:
The incident(s) that I rely on in support of this declaration occurred on the following date(s) and time(s): . . . . . . .
and at the following location(s).
The incident(s) that I rely on in support of this declaration were committed by the following person(s):
I state under penalty of perjury under the laws of the
state of Washington that the foregoing is true and correct.
Dated at . . . . . . . . . . (city) . ., Washington, this . . . day of
. . . ., 20. ..
.....................
Signature of Tenant or
Household Member
I verify that I have provided to the person whose signature appears above the statutes cited in RCW 59.18.575 and
that the individual was a victim of an act that constitutes a
crime of domestic violence, sexual assault, or stalking, and
that the individual informed me of the name of the alleged
perpetrator of the act.
Dated this . . . day of . . . ., 20. ..
.....................
Signature of authorized
officer/employee of
(Organization, agency,
clinic, professional service
provider)
(2) A tenant who terminates a rental agreement under
this section is discharged from the payment of rent for any
period following the last day of the month of the quitting
(2004 Ed.)
59.18.585
date. The tenant shall remain liable for the rent for the month
in which he or she terminated the rental agreement unless the
termination is in accordance with RCW 59.18.200(1). Notwithstanding lease provisions that allow for forfeiture of a
deposit for early termination, a tenant who terminates under
this section is entitled to the return of the full deposit, subject
to RCW 59.18.020 and 59.18.280. Other tenants who are
parties to the rental agreement, except household members
who are the victims of sexual assault, stalking, or domestic
violence, are not released from their obligations under the
rental agreement or other obligations under this chapter.
(3) The provision of verification of a report under subsection (1)(b) of this section does not waive the confidential
or privileged nature of the communication between a victim
of domestic violence, sexual assault, or stalking with a qualified third party pursuant to RCW 5.60.060, 70.123.075, or
70.125.065. No record or evidence obtained from such disclosure may be used in any civil, administrative, or criminal
proceeding against the victim unless a written waiver of
applicable evidentiary privilege is obtained, except that the
verification itself, and no other privileged information, under
subsection (1)(b) of this section may be used in civil proceedings brought under this section. [2004 c 17 § 3.]
Findings—Intent—Effective date—2004 c 17: See notes following
RCW 59.18.570.
59.18.580
59.18.580 Victim protection—Limitation on landlord's rental decisions. (1) A landlord may not terminate a
tenancy, fail to renew a tenancy, or refuse to enter into a
rental agreement based on the tenant's or applicant's or a
household member's status as a victim of domestic violence,
sexual assault, or stalking, or based on the tenant or applicant
having terminated a rental agreement under RCW 59.18.575.
(2) A landlord who refuses to enter into a rental agreement in violation of this section may be liable to the tenant or
applicant in a civil action for damages sustained by the tenant
or applicant. The prevailing party may also recover court
costs and reasonable attorneys' fees.
(3) It is a defense to an unlawful detainer action under
chapter 59.12 RCW that the action to remove the tenant and
recover possession of the premises is in violation of subsection (1) of this section.
(4) This section does not prohibit adverse housing decisions based upon other lawful factors within the landlord's
knowledge. [2004 c 17 § 4.]
Findings—Intent—Effective date—2004 c 17: See notes following
RCW 59.18.570.
59.18.585
59.18.585 Victim protection—Possession of dwelling
unit—Exclusion of others—New lock or key. (1) A tenant
who has obtained a court order from a court of competent
jurisdiction granting him or her possession of a dwelling unit
to the exclusion of one or more cotenants may request that a
lock be replaced or configured for a new key at the tenant's
expense. The landlord shall, if provided a copy of the order,
comply with the request and shall not provide copies of the
new keys to the tenant restrained or excluded by the court's
order. This section does not release a cotenant, other than a
household member who is the victim of domestic violence,
sexual assault, or stalking, from liability or obligations under
the rental agreement.
[Title 59 RCW—page 29]
59.18.900
Title 59 RCW: Landlord and Tenant
(2) A landlord who replaces a lock or configures for a
new key of a residential housing unit in accordance with subsection (1) of this section shall be held harmless from liability
for any damages that result directly from the lock change.
[2004 c 17 § 5.]
Findings—Intent—Effective date—2004 c 17: See notes following
RCW 59.18.570.
59.18.900
59.18.900 Severability—1973 1st ex.s. c 207. If any
provision of this chapter, or its application to any person or
circumstance is held invalid, the remainder of the act, or its
application to other persons or circumstances, is not affected.
[1973 1st ex.s. c 207 § 37.]
59.20.200
59.20.210
59.20.220
59.20.230
59.20.240
59.20.250
59.20.260
59.20.270
59.20.280
59.20.290
59.20.900
59.20.901
Landlord—Failure to carry out duties—Notice from tenant—
Time limits for landlord's remedial action.
Landlord—Failure to carry out duties—Repairs effected by
tenant—Bids—Notice—Deduction of cost from rent—Limitations.
Landlord—Failure to carry out duties—Judgment by court or
arbitrator for diminished rental value and repair costs—
Enforcement of judgment—Reduction in rent.
Defective condition—Unfeasible to remedy defect—Termination of tenancy.
Payment of rent condition to exercising remedies.
Mediation of disputes by independent third party.
Arbitration—Authorized—Selection of arbitrator—Procedure.
Arbitration—Application—Hearings—Decisions.
Arbitration—Fee.
Arbitration—Completion of arbitration after giving notice.
Severability—1977 ex.s. c 279.
Effective date—1999 c 359.
59.18.910
59.18.910 Severability—1989 c 342. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1989 c 342 § 18.]
59.18.911
59.18.911 Effective date—1989 c 342. This act shall
take effect on August 1, 1989, and shall apply to landlordtenant relationships existing on or entered into after the effective date of this act. [1989 c 342 § 19.]
Chapter 59.20
Chapter 59.20 RCW
MANUFACTURED/MOBILE HOME
LANDLORD-TENANT ACT
(Formerly: Mobile Home Landlord-Tenant Act)
Sections
59.20.010
59.20.020
59.20.030
59.20.040
59.20.045
59.20.050
59.20.060
59.20.070
59.20.073
59.20.074
59.20.075
59.20.080
59.20.090
59.20.100
59.20.110
59.20.120
59.20.130
59.20.135
59.20.140
59.20.145
59.20.150
59.20.155
59.20.160
59.20.170
59.20.180
59.20.190
Short title.
Rights and remedies—Obligation of good faith required.
Definitions.
Chapter applies to rental agreements regarding mobile home
lots, cooperatives, or subdivisions—Applicability of and
construction with provisions of chapters 59.12 and 59.18
RCW.
Enforceability of rules against a tenant.
Written rental agreement for term of one year or more
required—Waiver—Exceptions—Application of section.
Rental agreements—Required contents—Prohibited provisions.
Prohibited acts by landlord.
Transfer of rental agreements.
Rent—Liability of secured party with right to possession.
Presumption of reprisal or retaliatory action.
Grounds for termination of tenancy or occupancy or failure to
renew a tenancy or occupancy—Notice—Mediation.
Term of rental agreements—Renewal—Nonrenewal—Termination—Armed forces exception—Notices.
Improvements.
Attorney's fees and costs.
Venue.
Duties of landlord.
Maintenance of permanent structures—Findings and declarations—Definition.
Duties of tenant.
Live-in care provider—Not a tenant—Agreements—Guest
fee.
Service of notice on landlord or tenant.
Seizure of illegal drugs—Notification of landlord.
Moneys paid as deposit or security for performance by tenant—Written rental agreement to specify terms and conditions for retention by landlord.
Moneys paid as deposit or security for performance by tenant—Deposit by landlord in trust account—Receipt—
Claims.
Moneys paid as deposit or security for performance by tenant—Statement and notice of basis for retention.
Health and sanitation standards—Penalties.
[Title 59 RCW—page 30]
Office of mobile home affairs: Chapter 59.22 RCW.
Smoke detection devices required in dwelling units: RCW 48.48.140.
59.20.010
59.20.010 Short title. This chapter shall be known and
may be cited as the "Manufactured/Mobile Home LandlordTenant Act". [1999 c 359 § 1; 1977 ex.s. c 279 § 1.]
59.20.020
59.20.020 Rights and remedies—Obligation of good
faith required. Every duty under this chapter and every act
which must be performed as a condition precedent to the
exercise of a right or remedy under this chapter imposes an
obligation of good faith in its performance or enforcement.
[1977 ex.s. c 279 § 2.]
59.20.030
59.20.030 Definitions. For purposes of this chapter:
(1) "Abandoned" as it relates to a mobile home, manufactured home, or park model owned by a tenant in a mobile
home park, mobile home park cooperative, or mobile home
park subdivision or tenancy in a mobile home lot means the
tenant has defaulted in rent and by absence and by words or
actions reasonably indicates the intention not to continue tenancy;
(2) "Landlord" means the owner of a mobile home park
and includes the agents of a landlord;
(3) "Manufactured home" means a single-family dwelling built according to the United States department of housing and urban development manufactured home construction
and safety standards act, which is a national preemptive
building code. A manufactured home also: (a) Includes
plumbing, heating, air conditioning, and electrical systems;
(b) is built on a permanent chassis; and (c) can be transported
in one or more sections with each section at least eight feet
wide and forty feet long when transported, or when installed
on the site is three hundred twenty square feet or greater;
(4) "Mobile home" means a factory-built dwelling built
prior to June 15, 1976, to standards other than the United
States department of housing and urban development code,
and acceptable under applicable state codes in effect at the
time of construction or introduction of the home into the
state. Mobile homes have not been built since the introduction of the United States department of housing and urban
development manufactured home construction and safety act;
(5) "Mobile home lot" means a portion of a mobile home
park or manufactured housing community designated as the
location of one mobile home, manufactured home, or park
model and its accessory buildings, and intended for the exclu(2004 Ed.)
Manufactured/Mobile Home Landlord-Tenant Act
sive use as a primary residence by the occupants of that
mobile home, manufactured home, or park model;
(6) "Mobile home park" or "manufactured housing community" means any real property which is rented or held out
for rent to others for the placement of two or more mobile
homes, manufactured homes, or park models for the primary
purpose of production of income, except where such real
property is rented or held out for rent for seasonal recreational purpose only and is not intended for year-round occupancy;
(7) "Mobile home park cooperative" or "manufactured
housing cooperative" means real property consisting of common areas and two or more lots held out for placement of
mobile homes, manufactured homes, or park models in which
both the individual lots and the common areas are owned by
an association of shareholders which leases or otherwise
extends the right to occupy individual lots to its own members;
(8) "Mobile home park subdivision" or "manufactured
housing subdivision" means real property, whether it is called
a subdivision, condominium, or planned unit development,
consisting of common areas and two or more lots held for
placement of mobile homes, manufactured homes, or park
models in which there is private ownership of the individual
lots and common, undivided ownership of the common areas
by owners of the individual lots;
(9) "Park model" means a recreational vehicle intended
for permanent or semi-permanent installation and is used as a
primary residence;
(10) "Recreational vehicle" means a travel trailer, motor
home, truck camper, or camping trailer that is primarily
designed and used as temporary living quarters, is either selfpropelled or mounted on or drawn by another vehicle, is transient, is not occupied as a primary residence, and is not
immobilized or permanently affixed to a mobile home lot;
(11) "Tenant" means any person, except a transient, who
rents a mobile home lot;
(12) "Transient" means a person who rents a mobile
home lot for a period of less than one month for purposes
other than as a primary residence;
(13) "Occupant" means any person, including a live-in
care provider, other than a tenant, who occupies a mobile
home, manufactured home, or park model and mobile home
lot. [2003 c 127 § 1; 1999 c 359 § 2; 1998 c 118 § 1; 1993 c
66 § 15; 1981 c 304 § 4; 1980 c 152 § 3; 1979 ex.s. c 186 § 1;
1977 ex.s. c 279 § 3.]
Severability—1981 c 304: See note following RCW 26.16.030.
Severability—1979 ex.s. c 186: "If any provision of this act or its
application to any person or circumstance is held invalid, the remainder of
the act or the application of the provision to other persons or circumstances
is not affected." [1979 ex.s. c 186 § 30.]
59.20.040
59.20.040 Chapter applies to rental agreements
regarding mobile home lots, cooperatives, or subdivisions—Applicability of and construction with provisions
of chapters 59.12 and 59.18 RCW. This chapter shall regulate and determine legal rights, remedies, and obligations
arising from any rental agreement between a landlord and a
tenant regarding a mobile home lot and including specified
amenities within the mobile home park, mobile home park
cooperative, or mobile home park subdivision, where the ten(2004 Ed.)
59.20.050
ant has no ownership interest in the property or in the association which owns the property, whose uses are referred to as
a part of the rent structure paid by the tenant. All such rental
agreements shall be unenforceable to the extent of any conflict with any provision of this chapter. Chapter 59.12 RCW
shall be applicable only in implementation of the provisions
of this chapter and not as an alternative remedy to this chapter
which shall be exclusive where applicable: PROVIDED,
That the provision of RCW 59.12.090, 59.12.100, and
59.12.170 shall not apply to any rental agreement included
under the provisions of this chapter. RCW 59.18.055 and
59.18.370 through 59.18.410 shall be applicable to any action
of forcible entry or detainer or unlawful detainer arising from
a tenancy under the provisions of this chapter, except when a
mobile home, manufactured home, or park model or a tenancy in a mobile home lot is abandoned. Rentals of mobile
homes, manufactured homes, or park models themselves are
governed by the Residential Landlord-Tenant Act, chapter
59.18 RCW. [1999 c 359 § 3; 1997 c 86 § 2; 1981 c 304 § 5;
1979 ex.s. c 186 § 2; 1977 ex.s. c 279 § 4.]
Severability—1981 c 304: See note following RCW 26.16.030.
Severability—1979 ex.s. c 186: See note following RCW 59.20.030.
59.20.045
59.20.045 Enforceability of rules against a tenant.
Rules are enforceable against a tenant only if:
(1) Their purpose is to promote the convenience, health,
safety, or welfare of the residents, protect and preserve the
premises from abusive use, or make a fair distribution of services and facilities made available for the tenants generally;
(2) They are reasonably related to the purpose for which
they are adopted;
(3) They apply to all tenants in a fair manner;
(4) They are not for the purpose of evading an obligation
of the landlord; and
(5) They are not retaliatory or discriminatory in nature.
[1993 c 66 § 18.]
59.20.050
59.20.050 Written rental agreement for term of one
year or more required—Waiver—Exceptions—Application of section. (1) No landlord may offer a mobile home lot
for rent to anyone without offering a written rental agreement
for a term of one year or more. No landlord may offer to anyone any rental agreement for a term of one year or more for
which the monthly rental is greater, or the terms of payment
or other material conditions more burdensome to the tenant,
than any month-to-month rental agreement also offered to
such tenant or prospective tenant. Anyone who desires to
occupy a mobile home lot for other than a term of one year or
more may have the option to be on a month-to-month basis
but must waive, in writing, the right to such one year or more
term: PROVIDED, That annually, at any anniversary date of
the tenancy the tenant may require that the landlord provide a
written rental agreement for a term of one year. No landlord
shall allow a mobile home, manufactured home, or park
model to be moved into a mobile home park in this state until
a written rental agreement has been signed by and is in the
possession of the parties: PROVIDED, That if the landlord
allows the tenant to move a mobile home, manufactured
home, or park model into a mobile home park without obtaining a written rental agreement for a term of one year or more,
[Title 59 RCW—page 31]
59.20.060
Title 59 RCW: Landlord and Tenant
or a written waiver of the right to a one-year term or more, the
term of the tenancy shall be deemed to be for one year from
the date of occupancy of the mobile home lot;
(2) The requirements of subsection (1) of this section
shall not apply if:
(a) The mobile home park or part thereof has been
acquired or is under imminent threat of condemnation for a
public works project, or
(b) An employer-employee relationship exists between a
landlord and tenant;
(3) The provisions of this section shall apply to any tenancy upon expiration of the term of any oral or written rental
agreement governing such tenancy. [1999 c 359 § 4; 1981 c
304 § 37; 1980 c 152 § 4; 1979 ex.s. c 186 § 3; 1977 ex.s. c
279 § 5.]
Severability—1981 c 304: See note following RCW 26.16.030.
Severability—1979 ex.s. c 186: See note following RCW 59.20.030.
59.20.060
59.20.060 Rental agreements—Required contents—
Prohibited provisions. (1) Any mobile home space tenancy
regardless of the term, shall be based upon a written rental
agreement, signed by the parties, which shall contain:
(a) The terms for the payment of rent, including time and
place, and any additional charges to be paid by the tenant.
Additional charges that occur less frequently than monthly
shall be itemized in a billing to the tenant;
(b) Reasonable rules for guest parking which shall be
clearly stated;
(c) The rules and regulations of the park;
(d) The name and address of the person who is the landlord, and if such person does not reside in the state there shall
also be designated by name and address a person who resides
in the county where the mobile home park is located who is
authorized to act as agent for the purposes of service of
notices and process. If no designation is made of a person to
act as agent, then the person to whom rental payments are to
be made shall be considered the agent;
(e) The name and address of any party who has a secured
interest in the mobile home, manufactured home, or park
model;
(f) A forwarding address of the tenant or the name and
address of a person who would likely know the whereabouts
of the tenant in the event of an emergency or an abandonment
of the mobile home, manufactured home, or park model;
(g)(i) A covenant by the landlord that, except for acts or
events beyond the control of the landlord, the mobile home
park will not be converted to a land use that will prevent the
space that is the subject of the lease from continuing to be
used for its intended use for a period of three years after the
beginning of the term of the rental agreement;
(ii) A rental agreement may, in the alternative, contain a
statement that the park may be sold or otherwise transferred
at any time with the result that subsequent owners may close
the mobile home park, or that the landlord may close the park
at any time after the required notice. The covenant or statement required by this subsection must appear in print that is
larger than the other text of the lease and must be set off by
means of a box, blank space, or comparable visual device;
The requirements of this subsection shall apply to tenancies initiated after April 28, 1989.
[Title 59 RCW—page 32]
(h) The terms and conditions under which any deposit or
portion thereof may be withheld by the landlord upon termination of the rental agreement if any moneys are paid to the
landlord by the tenant as a deposit or as security for performance of the tenant's obligations in a rental agreement;
(i) A listing of the utilities, services, and facilities which
will be available to the tenant during the tenancy and the
nature of the fees, if any, to be charged;
(j) A description of the boundaries of a mobile home
space sufficient to inform the tenant of the exact location of
the tenant's space in relation to other tenants' spaces;
(k) A statement of the current zoning of the land on
which the mobile home park is located; and
(l) A statement of the expiration date of any conditional
use, temporary use, or other land use permit subject to a fixed
expiration date that is necessary for the continued use of the
land as a mobile home park.
(2) Any rental agreement executed between the landlord
and tenant shall not contain any provision:
(a) Which allows the landlord to charge a fee for guest
parking unless a violation of the rules for guest parking
occurs: PROVIDED, That a fee may be charged for guest
parking which covers an extended period of time as defined
in the rental agreement;
(b) Which authorizes the towing or impounding of a
vehicle except upon notice to the owner thereof or the tenant
whose guest is the owner of the vehicle;
(c) Which allows the landlord to alter the due date for
rent payment or increase the rent: (i) During the term of the
rental agreement if the term is less than one year, or (ii) more
frequently than annually if the term is for one year or more:
PROVIDED, That a rental agreement may include an escalation clause for a pro rata share of any increase in the mobile
home park's real property taxes or utility assessments or
charges, over the base taxes or utility assessments or charges
of the year in which the rental agreement took effect, if the
clause also provides for a pro rata reduction in rent or other
charges in the event of a reduction in real property taxes or
utility assessments or charges, below the base year: PROVIDED FURTHER, That a rental agreement for a term
exceeding one year may provide for annual increases in rent
in specified amounts or by a formula specified in such agreement;
(d) By which the tenant agrees to waive or forego rights
or remedies under this chapter;
(e) Allowing the landlord to charge an "entrance fee" or
an "exit fee." However, an entrance fee may be charged as
part of a continuing care contract as defined in RCW
70.38.025;
(f) Which allows the landlord to charge a fee for guests:
PROVIDED, That a landlord may establish rules charging for
guests who remain on the premises for more than fifteen days
in any sixty-day period;
(g) By which the tenant agrees to waive or forego homestead rights provided by chapter 6.13 RCW. This subsection
shall not prohibit such waiver after a default in rent so long as
such waiver is in writing signed by the husband and wife or
by an unmarried claimant and in consideration of the landlord's agreement not to terminate the tenancy for a period of
time specified in the waiver if the landlord would be otherwise entitled to terminate the tenancy under this chapter; or
(2004 Ed.)
Manufactured/Mobile Home Landlord-Tenant Act
(h) By which, at the time the rental agreement is entered
into, the landlord and tenant agree to the selection of a particular arbitrator. [2002 c 63 § 1; 1999 c 359 § 5. Prior: 1990 c
174 § 1; 1990 c 169 § 1; 1989 c 201 § 9; 1984 c 58 § 1; 1981
c 304 § 18; 1979 ex.s. c 186 § 4; 1977 ex.s. c 279 § 6.]
Severability—1984 c 58: See note following RCW 59.20.200.
Severability—1981 c 304: See note following RCW 26.16.030.
Severability—1979 ex.s. c 186: See note following RCW 59.20.030.
59.20.070
59.20.070 Prohibited acts by landlord. A landlord
shall not:
(1) Deny any tenant the right to sell such tenant's mobile
home, manufactured home, or park model within a park or
require the removal of the mobile home, manufactured home,
or park model from the park because of the sale thereof.
Requirements for the transfer of the rental agreement are in
RCW 59.20.073;
(2) Restrict the tenant's freedom of choice in purchasing
goods or services but may reserve the right to approve or disapprove any exterior structural improvements on a mobile
home space: PROVIDED, That door-to-door solicitation in
the mobile home park may be restricted in the rental agreement. Door-to-door solicitation does not include public officials or candidates for public office meeting or distributing
information to tenants in accordance with subsection (4) of
this section;
(3) Prohibit meetings by tenants of the mobile home park
to discuss mobile home living and affairs, including political
caucuses or forums for or speeches of public officials or candidates for public office, or meetings of organizations that
represent the interest of tenants in the park, held in any of the
park community or recreation halls if these halls are open for
the use of the tenants, conducted at reasonable times and in an
orderly manner on the premises, nor penalize any tenant for
participation in such activities;
(4) Prohibit a public official or candidate for public
office from meeting with or distributing information to tenants in their individual mobile homes, manufactured homes,
or park models, nor penalize any tenant for participating in
these meetings or receiving this information;
(5) Evict a tenant, terminate a rental agreement, decline
to renew a rental agreement, increase rental or other tenant
obligations, decrease services, or modify park rules in retaliation for any of the following actions on the part of a tenant
taken in good faith:
(a) Filing a complaint with any state, county, or municipal governmental authority relating to any alleged violation
by the landlord of an applicable statute, regulation, or ordinance;
(b) Requesting the landlord to comply with the provision
of this chapter or other applicable statute, regulation, or ordinance of the state, county, or municipality;
(c) Filing suit against the landlord for any reason;
(d) Participation or membership in any homeowners
association or group;
(6) Charge to any tenant a utility fee in excess of actual
utility costs or intentionally cause termination or interruption
of any tenant's utility services, including water, heat, electricity, or gas, except when an interruption of a reasonable duration is required to make necessary repairs;
(2004 Ed.)
59.20.073
(7) Remove or exclude a tenant from the premises unless
this chapter is complied with or the exclusion or removal is
under an appropriate court order; or
(8) Prevent the entry or require the removal of a mobile
home, manufactured home, or park model for the sole reason
that the mobile home has reached a certain age. Nothing in
this subsection shall limit a landlords' right to exclude or
expel a mobile home, manufactured home, or park model for
any other reason, including but not limited to, failure to comply with fire, safety, and other provisions of local ordinances
and state laws relating to mobile homes, manufactured
homes, and park models, as long as the action conforms to
this chapter or any other relevant statutory provision. [2003
c 127 § 2; 1999 c 359 § 6; 1993 c 66 § 16; 1987 c 253 § 1;
1984 c 58 § 2; 1981 c 304 § 19; 1980 c 152 § 5; 1979 ex.s. c
186 § 5; 1977 ex.s. c 279 § 7.]
Severability—1984 c 58: See note following RCW 59.20.200.
Severability—1981 c 304: See note following RCW 26.16.030.
Severability—1979 ex.s. c 186: See note following RCW 59.20.030.
59.20.073
59.20.073 Transfer of rental agreements. (1) Any
rental agreement shall be assignable by the tenant to any person to whom he or she sells or transfers title to the mobile
home, manufactured home, or park model.
(2) A tenant who sells a mobile home, manufactured
home, or park model within a park shall notify the landlord in
writing of the date of the intended sale and transfer of the
rental agreement at least fifteen days in advance of such
intended transfer and shall notify the buyer in writing of the
provisions of this section. The tenant shall verify in writing
to the landlord payment of all taxes, rent, and reasonable
expenses due on the mobile home, manufactured home, or
park model and mobile home lot.
(3) The landlord shall notify the selling tenant, in writing, of a refusal to permit transfer of the rental agreement at
least seven days in advance of such intended transfer.
(4) The landlord may require the mobile home, manufactured home, or park model to meet applicable fire and safety
standards if a state or local agency responsible for the
enforcement of fire and safety standards has issued a notice
of violation of those standards to the tenant and those violations remain uncorrected. Upon correction of the violation to
the satisfaction of the state or local agency responsible for the
enforcement of that notice of violation, the landlord's refusal
to permit the transfer is deemed withdrawn.
(5) The landlord shall approve or disapprove of the
assignment of a rental agreement on the same basis that the
landlord approves or disapproves of any new tenant, and any
disapproval shall be in writing. Consent to an assignment
shall not be unreasonably withheld.
(6) Failure to notify the landlord in writing, as required
under subsection (2) of this section; or failure of the new tenant to make a good faith attempt to arrange an interview with
the landlord to discuss assignment of the rental agreement; or
failure of the current or new tenant to obtain written approval
of the landlord for assignment of the rental agreement, shall
be grounds for disapproval of such transfer. [2003 c 127 § 3;
1999 c 359 § 7; 1993 c 66 § 17; 1981 c 304 § 20.]
Severability—1981 c 304: See note following RCW 26.16.030.
[Title 59 RCW—page 33]
59.20.074
Title 59 RCW: Landlord and Tenant
59.20.074
59.20.074 Rent—Liability of secured party with
right to possession. (1) A secured party who has a security
interest in a mobile home, manufactured home, or park model
that is located within a mobile home park and who has a right
to possession of the mobile home, manufactured home, or
park model under *RCW 62A.9-503, shall be liable to the
landlord from the date the secured party receives written
notice by certified mail, return receipt requested, for rent for
occupancy of the mobile home space under the same terms
the tenant was paying prior to repossession, and any other
reasonable expenses incurred after the receipt of the notice,
until disposition of the mobile home, manufactured home, or
park model under *RCW 62A.9-504. The notice of default by
a tenant must state the amount of rent and the amount and
nature of any reasonable expenses that the secured party is
liable for payment to the landlord. The notice must also state
that the secured party will be provided a copy of the rental
agreement previously signed by the tenant and the landlord
upon request.
(2) This section shall not affect the availability of a landlord's lien as provided in chapter 60.72 RCW.
(3) As used in this section, "security interest" shall have
the same meaning as this term is defined in RCW 62A.1-201,
and "secured party" shall have the same meaning as this term
is defined in *RCW 62A.9-105.
(4) For purposes of this section, "reasonable expenses"
means any routine maintenance and utility charges for which
the tenant is liable under the rental agreement.
(5) Any rent or other reasonable expenses owed by the
secured party to the landlord pursuant to this section shall be
paid to the landlord prior to the removal of the mobile home,
manufactured home, or park model from the mobile home
park.
(6) If a secured party who has a secured interest in a
mobile home, manufactured home, or park model that is
located in a mobile home park becomes liable to the landlord
pursuant to this section, then the relationship between the
secured party and the landlord shall be governed by the rental
agreement previously signed by the tenant and the landlord
unless otherwise agreed, except that the term of the rental
agreement shall convert to a month-to-month tenancy. No
waiver is required to convert the rental agreement to a monthto-month tenancy. Either the landlord or the secured party
may terminate the month-to-month tenancy upon giving written notice of thirty days or more. The secured party and the
landlord are not required to execute a new rental agreement.
Nothing in this section shall be construed to be a waiver of
any rights by the tenant. [1999 c 359 § 8; 1990 c 169 § 2;
1985 c 78 § 1.]
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001. For later enactment, see Article
62A.9A RCW.
59.20.075
59.20.075 Presumption of reprisal or retaliatory
action. Initiation by the landlord of any action listed in RCW
59.20.070(5) within one hundred twenty days after a good
faith and lawful act by the tenant or within one hundred
twenty days after any inspection or proceeding of a governmental agency resulting from such act, shall create a rebuttable presumption affecting the burden of proof, that the action
is a reprisal or retaliatory action against the tenant: PRO[Title 59 RCW—page 34]
VIDED, That if the court finds that the tenant made a complaint or report to a governmental authority within one hundred twenty days after notice of a proposed increase in rent or
other action in good faith by the landlord, there is a rebuttable
presumption that the complaint or report was not made in
good faith: PROVIDED FURTHER, That no presumption
against the landlord shall arise under this section, with
respect to an increase in rent, if the landlord, in a notice to the
tenant of increase in rent, specifies reasonable grounds for
said increase, which grounds may include a substantial
increase in market value due to remedial action under this
chapter. [1999 c 359 § 9; 1984 c 58 § 3; 1980 c 152 § 6.]
Severability—1984 c 58: See note following RCW 59.20.200.
59.20.080
59.20.080 Grounds for termination of tenancy or
occupancy or failure to renew a tenancy or occupancy—
Notice—Mediation. (1) A landlord shall not terminate or
fail to renew a tenancy of a tenant or the occupancy of an
occupant, of whatever duration except for one or more of the
following reasons:
(a) Substantial violation, or repeated or periodic violations of the rules of the mobile home park as established by
the landlord at the inception of the tenancy or as assumed
subsequently with the consent of the tenant or for violation of
the tenant's duties as provided in RCW 59.20.140. The tenant
shall be given written notice to cease the rule violation immediately. The notice shall state that failure to cease the violation of the rule or any subsequent violation of that or any
other rule shall result in termination of the tenancy, and that
the tenant shall vacate the premises within fifteen days:
PROVIDED, That for a periodic violation the notice shall
also specify that repetition of the same violation shall result
in termination: PROVIDED FURTHER, That in the case of
a violation of a "material change" in park rules with respect to
pets, tenants with minor children living with them, or recreational facilities, the tenant shall be given written notice
under this chapter of a six month period in which to comply
or vacate;
(b) Nonpayment of rent or other charges specified in the
rental agreement, upon five days written notice to pay rent
and/or other charges or to vacate;
(c) Conviction of the tenant of a crime, commission of
which threatens the health, safety, or welfare of the other
mobile home park tenants. The tenant shall be given written
notice of a fifteen day period in which to vacate;
(d) Failure of the tenant to comply with local ordinances
and state laws and regulations relating to mobile homes, manufactured homes, or park models or mobile home, manufactured homes, or park model living within a reasonable time
after the tenant's receipt of notice of such noncompliance
from the appropriate governmental agency;
(e) Change of land use of the mobile home park including, but not limited to, conversion to a use other than for
mobile homes, manufactured homes, or park models or conversion of the mobile home park to a mobile home park cooperative or mobile home park subdivision: PROVIDED, That
the landlord shall give the tenants twelve months' notice in
advance of the effective date of such change, except that for
the period of six months following April 28, 1989, the land(2004 Ed.)
Manufactured/Mobile Home Landlord-Tenant Act
lord shall give the tenants eighteen months' notice in advance
of the proposed effective date of such change;
(f) Engaging in "criminal activity." "Criminal activity"
means a criminal act defined by statute or ordinance that
threatens the health, safety, or welfare of the tenants. A park
owner seeking to evict a tenant or occupant under this subsection need not produce evidence of a criminal conviction, even
if the alleged misconduct constitutes a criminal offense.
Notice from a law enforcement agency of criminal activity
constitutes sufficient grounds, but not the only grounds, for
an eviction under this subsection. Notification of the seizure
of illegal drugs under RCW 59.20.155 is evidence of criminal
activity and is grounds for an eviction under this subsection.
The requirement that any tenant or occupant register as a sex
offender under RCW 9A.44.130 is grounds for eviction under
this subsection. If criminal activity is alleged to be a basis of
termination, the park owner may proceed directly to an
unlawful detainer action;
(g) The tenant's application for tenancy contained a
material misstatement that induced the park owner to approve
the tenant as a resident of the park, and the park owner discovers and acts upon the misstatement within one year of the
time the resident began paying rent;
(h) If the landlord serves a tenant three fifteen-day
notices within a twelve-month period to comply or vacate for
failure to comply with the material terms of the rental agreement or park rules. The applicable twelve-month period shall
commence on the date of the first violation;
(i) Failure of the tenant to comply with obligations
imposed upon tenants by applicable provisions of municipal,
county, and state codes, statutes, ordinances, and regulations,
including this chapter. The landlord shall give the tenant
written notice to comply immediately. The notice must state
that failure to comply will result in termination of the tenancy
and that the tenant shall vacate the premises within fifteen
days;
(j) The tenant engages in disorderly or substantially
annoying conduct upon the park premises that results in the
destruction of the rights of others to the peaceful enjoyment
and use of the premises. The landlord shall give the tenant
written notice to comply immediately. The notice must state
that failure to comply will result in termination of the tenancy
and that the tenant shall vacate the premises within fifteen
days;
(k) The tenant creates a nuisance that materially affects
the health, safety, and welfare of other park residents. The
landlord shall give the tenant written notice to cease the conduct that constitutes a nuisance immediately. The notice
must state that failure to cease the conduct will result in termination of the tenancy and that the tenant shall vacate the
premises in five days;
(l) Any other substantial just cause that materially affects
the health, safety, and welfare of other park residents. The
landlord shall give the tenant written notice to comply immediately. The notice must state that failure to comply will
result in termination of the tenancy and that the tenant shall
vacate the premises within fifteen days; or
(m) Failure to pay rent by the due date provided for in the
rental agreement three or more times in a twelve-month
period, commencing with the date of the first violation, after
service of a five-day notice to comply or vacate.
(2004 Ed.)
59.20.090
(2) Within five days of a notice of eviction as required by
subsection (1)(a) of this section, the landlord and tenant shall
submit any dispute to mediation. The parties may agree in
writing to mediation by an independent third party or through
industry mediation procedures. If the parties cannot agree,
then mediation shall be through industry mediation procedures. A duty is imposed upon both parties to participate in
the mediation process in good faith for a period of ten days
for an eviction under subsection (1)(a) of this section. It is a
defense to an eviction under subsection (1)(a) of this section
that a landlord did not participate in the mediation process in
good faith.
(3) Chapters 59.12 and 59.18 RCW govern the eviction
of recreational vehicles, as defined in RCW 59.20.030, from
mobile home parks. This chapter governs the eviction of
mobile homes, manufactured homes, park models, and recreational vehicles used as a primary residence from a mobile
home park. [2003 c 127 § 4; 1999 c 359 § 10; 1998 c 118 §
2; 1993 c 66 § 19; 1989 c 201 § 12; 1988 c 150 § 5; 1984 c 58
§ 4; 1981 c 304 § 21; 1979 ex.s. c 186 § 6; 1977 ex.s. c 279 §
8.]
Legislative findings—Severability—1988 c 150: See notes following
RCW 59.18.130.
Severability—1984 c 58: See note following RCW 59.20.200.
Severability—1981 c 304: See note following RCW 26.16.030.
Severability—1979 ex.s. c 186: See note following RCW 59.20.030.
59.20.090
59.20.090 Term of rental agreements—Renewal—
Nonrenewal—Termination—Armed forces exception—
Notices. (1) Unless otherwise agreed rental agreements shall
be for a term of one year. Any rental agreement of whatever
duration shall be automatically renewed for the term of the
original rental agreement, unless a different specified term is
agreed upon.
(2) A landlord seeking to increase the rent upon expiration of the term of a rental agreement of any duration shall
notify the tenant in writing three months prior to the effective
date of any increase in rent.
(3) A tenant shall notify the landlord in writing one
month prior to the expiration of a rental agreement of an
intention not to renew.
(4)(a) The tenant may terminate the rental agreement
upon thirty days written notice whenever a change in the
location of the tenant's employment requires a change in his
residence, and shall not be liable for rental following such
termination unless after due diligence and reasonable effort
the landlord is not able to rent the mobile home lot at a fair
rental. If the landlord is not able to rent the lot, the tenant
shall remain liable for the rental specified in the rental agreement until the lot is rented or the original term ends.
(b) Any tenant who is a member of the armed forces,
including the national guard and armed forces reserves, or
that tenant's spouse or dependent, may terminate a rental
agreement with less than thirty days notice if the tenant
receives reassignment or deployment orders which do not
allow greater notice. The tenant shall provide notice of the
reassignment or deployment order to the landlord no later
than seven days after receipt. [2003 c 7 § 3; 1998 c 118 § 3;
1980 c 152 § 2; 1979 ex.s. c 186 § 7; 1977 ex.s. c 279 § 9.]
Effective date—2003 c 7: See note following RCW 59.18.200.
[Title 59 RCW—page 35]
59.20.100
Title 59 RCW: Landlord and Tenant
Severability—1979 ex.s. c 186: See note following RCW 59.20.030.
59.20.100
59.20.100 Improvements. Improvements, except a natural lawn, purchased and installed by a tenant on a mobile
home lot shall remain the property of the tenant even though
affixed to or in the ground and may be removed or disposed
of by the tenant prior to the termination of the tenancy: PROVIDED, That a tenant shall leave the mobile home lot in substantially the same or better condition than upon taking possession. [1977 ex.s. c 279 § 10.]
59.20.110
59.20.110 Attorney's fees and costs. In any action arising out of this chapter, the prevailing party shall be entitled to
reasonable attorney's fees and costs. [1977 ex.s. c 279 § 11.]
59.20.120
59.20.120 Venue. Venue for any action arising under
this chapter shall be in the district or superior court of the
county in which the mobile home lot is located. [1977 ex.s. c
279 § 12.]
59.20.130
59.20.130 Duties of landlord. It shall be the duty of the
landlord to:
(1) Comply with codes, statutes, ordinances, and administrative rules applicable to the mobile home park;
(2) Maintain the common premises and prevent the accumulation of stagnant water and to prevent the detrimental
effects of moving water when such condition is not the fault
of the tenant;
(3) Keep any shared or common premises reasonably
clean, sanitary, and safe from defects to reduce the hazards of
fire or accident;
(4) Keep all common premises of the mobile home park,
and vacant mobile home lots, not in the possession of tenants,
free of weeds or plant growth noxious and detrimental to the
health of the tenants and free from potentially injurious or
unsightly objects and condition;
(5) Exterminate or make a reasonable effort to exterminate rodents, vermin, or other pests dangerous to the health
and safety of the tenant whenever infestation exists on the
common premises or whenever infestation occurs in the interior of a mobile home, manufactured home, or park model as
a result of infestation existing on the common premises;
(6) Maintain and protect all utilities provided to the
mobile home, manufactured home, or park model in good
working condition. Maintenance responsibility shall be determined at that point where the normal mobile home, manufactured home, or park model utilities "hook-ups" connect to
those provided by the landlord or utility company;
(7) Respect the privacy of the tenants and shall have no
right of entry to a mobile home, manufactured home, or park
model without the prior written consent of the occupant,
except in case of emergency or when the occupant has abandoned the mobile home, manufactured home, or park model.
Such consent may be revoked in writing by the occupant at
any time. The ownership or management shall have a right of
entry upon the land upon which a mobile home, manufactured home, or park model is situated for maintenance of utilities, to insure compliance with applicable codes, statutes,
ordinances, administrative rules, and the rental agreement
and the rules of the park, and protection of the mobile home
[Title 59 RCW—page 36]
park at any reasonable time or in an emergency, but not in a
manner or at a time which would interfere with the occupant's
quiet enjoyment. The ownership or management shall make a
reasonable effort to notify the tenant of their intention of
entry upon the land which a mobile home, manufactured
home, or park model is located prior to entry;
(8) Allow tenants freedom of choice in the purchase of
goods and services, and not unreasonably restrict access to
the mobile home park for such purposes;
(9) Maintain roads within the mobile home park in good
condition; and
(10) Notify each tenant within five days after a petition
has been filed by the landlord for a change in the zoning of
the land where the mobile home park is located and make a
description of the change available to the tenant.
A landlord shall not have a duty to repair a defective condition under this section, nor shall any defense or remedy be
available to the tenant under this chapter, if the defective condition complained of was caused by the conduct of the tenant,
the tenant's family, invitee, or other person acting under the
tenant's control, or if a tenant unreasonably fails to allow the
landlord access to the property for purposes of repair. [1999
c 359 § 11; 1993 c 66 § 20; 1984 c 58 § 5; 1979 ex.s. c 186 §
8.]
Severability—1984 c 58: See note following RCW 59.20.200.
Severability—1979 ex.s. c 186: See note following RCW 59.20.030.
Smoke detection devices required in dwelling units: RCW 48.48.140.
59.20.135
59.20.135 Maintenance of permanent structures—
Findings and declarations—Definition. (1) The legislature
finds that some mobile home park owners transfer the
responsibility for the upkeep of permanent structures within
the mobile home park to the park tenants. This transfer sometimes occurs after the permanent structures have been
allowed to deteriorate. Many mobile home parks consist
entirely of senior citizens who do not have the financial
resources or physical capability to make the necessary repairs
to these structures once they have fallen into disrepair. The
inability of the tenants to maintain permanent structures can
lead to significant safety hazards to the tenants as well as to
visitors to the mobile home park. The legislature therefore
finds and declares that it is in the public interest and necessary for the public health and safety to prohibit mobile home
park owners from transferring the duty to maintain permanent structures in mobile home parks to the tenants.
(2) A mobile home park owner is prohibited from transferring responsibility for the maintenance or care of permanent structures within the mobile home park to the tenants of
the park. A provision within a rental agreement or other document transferring responsibility for the maintenance or care
of permanent structures within the mobile home park to the
park tenants is void.
(3) A "permanent structure" for purposes of this section
includes the clubhouse, carports, storage sheds, or other permanent structure. A permanent structure does not include
structures built or affixed by a tenant. A permanent structure
includes only those structures that were provided as amenities to the park tenants.
(4) Nothing in this section shall be construed to prohibit
a park owner from requiring a tenant to maintain his or her
(2004 Ed.)
Manufactured/Mobile Home Landlord-Tenant Act
mobile home, manufactured home, or park model or yard.
Nothing in this section shall be construed to prohibit a park
owner from transferring responsibility for the maintenance or
care of permanent structures within the mobile home park to
an organization of park tenants or to an individual park tenant
when requested by the tenant organization or individual tenant. [1999 c 359 § 12; 1994 c 30 § 1.]
Effective date—1994 c 30: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[March 21, 1994]." [1994 c 30 § 2.]
59.20.140
59.20.140 Duties of tenant. It shall be the duty of the
tenant to pay the rental amount at such times and in such
amounts as provided for in the rental agreement or as otherwise provided by law and comply with all obligations
imposed upon tenants by applicable provisions of all municipal, county, and state codes, statutes, ordinances and regulations, and in addition the tenant shall:
(1) Keep the mobile home lot which he occupies and
uses as clean and sanitary as the conditions of the premises
permit;
(2) Properly dispose of all rubbish, garbage, and other
organic or flammable waste, in a clean and sanitary manner at
reasonable and regular intervals, and assume all costs of
extermination and fumigation for infestation caused by the
tenant on the tenant's leased premises;
(3) Not intentionally or negligently destroy, deface,
damage, impair, or remove any facilities, equipment, furniture, furnishings, fixtures or appliances provided by the landlord, or permit any member of his family, invitee, or licensee,
or any person acting under his control to do so;
(4) Not permit a nuisance or common waste; and
(5) Not engage in drug-related activities as defined in
RCW 59.20.080. [1988 c 150 § 6; 1979 ex.s. c 186 § 9.]
Legislative findings—Severability—1988 c 150: See notes following
RCW 59.18.130.
Severability—1979 ex.s. c 186: See note following RCW 59.20.030.
59.20.145
59.20.145 Live-in care provider—Not a tenant—
Agreements—Guest fee. A tenant in a mobile home park
may share his or her mobile home, manufactured home, or
park model with any person over eighteen years of age, if that
person is providing live-in home health care or live-in hospice care to the tenant under an approved plan of treatment
ordered by the tenant's physician. The live-in care provider is
not considered a tenant of the park and shall have no rights of
tenancy in the park. Any agreement between the tenant and
the live-in care provider does not change the terms and conditions of the rental agreement between the landlord and the
tenant. The live-in care provider shall comply with the rules
of the mobile home park, the rental agreement, and this chapter. The landlord may not charge a guest fee for the live-in
care provider. [1999 c 359 § 13; 1993 c 152 § 1.]
59.20.150
59.20.150 Service of notice on landlord or tenant. (1)
Any notice required by this chapter to be given to a tenant
shall be served on behalf of the landlord: (a) By delivering a
copy personally to the tenant; or (b) if the tenant is absent
from the mobile home, manufactured home, or park model by
affixing a copy of the notice in a conspicuous place on the
(2004 Ed.)
59.20.170
mobile home, manufactured home, or park model and also
sending a copy through the mail addressed to the tenant at the
tenant's last known address.
(2) Any notice required by this chapter to be given to the
landlord shall be served by the tenant in the same manner as
provided for in subsection (1) of this section, or by mail to the
landlord at such place as shall be expressly provided in the
rental agreement.
(3) The landlord shall state in any notice of eviction
required by RCW 59.20.080(1) as now or hereafter amended
the specific reason for eviction in a clear and concise manner.
[1999 c 359 § 14; 1979 ex.s. c 186 § 10.]
Severability—1979 ex.s. c 186: See note following RCW 59.20.030.
59.20.155
59.20.155 Seizure of illegal drugs—Notification of
landlord. Any law enforcement agency which seizes a legend drug pursuant to a violation of chapter 69.41 RCW, a
controlled substance pursuant to a violation of chapter 69.50
RCW, or an imitation controlled substance pursuant to a violation of chapter 69.52 RCW, shall make a reasonable
attempt to discover the identity of the landlord and shall
notify the landlord in writing, at the last address listed in the
property tax records and at any other address known to the
law enforcement agency, of the seizure and the location of
the seizure of the illegal drugs or substances. [1988 c 150 §
12.]
Legislative findings—Severability—1988 c 150: See notes following
RCW 59.18.130.
59.20.160
59.20.160 Moneys paid as deposit or security for performance by tenant—Written rental agreement to specify
terms and conditions for retention by landlord. If any
moneys are paid to the landlord by the tenant as a deposit or
as security for performance of the tenant's obligations in a
written rental agreement, such rental agreement shall include
the terms and conditions under which the deposit or portion
thereof may be withheld by the landlord upon termination of
the rental agreement. If all or part of the deposit may be withheld to indemnify the landlord for damages to the mobile
home space for which the tenant is responsible, the rental
agreement shall so specify. It is unlawful to charge or collect
a deposit or security for performance if the parties have not
entered into a written rental agreement. [1984 c 58 § 17;
1979 ex.s. c 186 § 11.]
Severability—1984 c 58: See note following RCW 59.20.200.
Severability—1979 ex.s. c 186: See note following RCW 59.20.030.
59.20.170
59.20.170 Moneys paid as deposit or security for performance by tenant—Deposit by landlord in trust
account—Receipt—Claims. (1) All moneys paid to the
landlord by the tenant as a deposit as security for performance of the tenant's obligations in a rental agreement shall
promptly be deposited by the landlord in a trust account,
maintained by the landlord for the purpose of holding such
security deposits for tenants of the landlord, in a financial
institution as defined by RCW 30.22.041 or licensed escrow
agent located in Washington. Except as provided in subsection (2) of this section, unless otherwise agreed in writing, the
landlord shall be entitled to receipt of interest paid on such
trust account deposits. The landlord shall provide the tenant
[Title 59 RCW—page 37]
59.20.180
Title 59 RCW: Landlord and Tenant
with a written receipt for the deposit and shall provide written
notice of the name and address and location of the depository
and any subsequent change thereof. If during a tenancy the
status of landlord is transferred to another, any sums in the
deposit trust account affected by such transfer shall simultaneously be transferred to an equivalent trust account of the
successor landlord, and the successor landlord shall promptly
notify the tenant of the transfer and of the name, address and
location of the new depository. The tenant's claim to any
moneys paid under this section shall be prior to that of any
creditor of the landlord, including a trustee in bankruptcy or
receiver, even if such moneys are commingled.
(2) All moneys paid, in excess of two months' rent on the
mobile home lot, to the landlord by the tenant as a deposit as
security for performance of the tenant's obligations in a rental
agreement shall be deposited into an interest-bearing trust
account for the particular tenant. The interest accruing on the
deposit in the account, minus fees charged to administer the
account, shall be paid to the tenant on an annual basis. All
other provisions of subsection (1) of this section shall apply
to deposits under this subsection. [2004 c 136 § 2; 1999 c 359
§ 15; 1979 ex.s. c 186 § 12.]
Severability—1979 ex.s. c 186: See note following RCW 59.20.030.
59.20.180
59.20.180 Moneys paid as deposit or security for performance by tenant—Statement and notice of basis for
retention. Within fourteen days after the termination of the
rental agreement and vacation of the mobile home space, the
landlord shall give a full and specific statement of the basis
for retaining any of the deposit together with the payment of
any refund due the tenant under the terms and conditions of
the rental agreement. No portion of any deposit shall be withheld on account of wear resulting from ordinary use of the
mobile home space.
The statement shall be delivered to the tenant personally
or by mail to the last known address. If the landlord fails to
give such statement together with any refund due the tenant
within the time limits specified above such landlord shall be
liable to the tenant for the full amount of the refund due.
Nothing in this chapter shall preclude the landlord from
proceeding against, and the landlord shall have the right to
proceed against a tenant to recover sums exceeding the
amount of the tenant's damage or security deposit for damage
to the property for which the tenant is responsible. [1984 c 58
§ 11; 1979 ex.s. c 186 § 13.]
Severability—1984 c 58: See note following RCW 59.20.200.
Severability—1979 ex.s. c 186: See note following RCW 59.20.030.
59.20.190
59.20.190 Health and sanitation standards—Penalties. The state board of health shall adopt rules on or before
January 1, 1982, setting health and sanitation standards for
mobile home parks. Such rules shall be enforced by the city,
county, city-county, or district health officer of the jurisdiction in which the mobile home park is located, upon notice of
a violation to such health officer. Failure to remedy the violation after enforcement efforts are made may result in a fine
being imposed on the park owner, or tenant as may be applicable, by the enforcing governmental body of up to one hundred dollars per day, depending on the degree of risk of injury
[Title 59 RCW—page 38]
or illness to persons in or around the park. [1988 c 126 § 1;
1981 c 304 § 22.]
Severability—1981 c 304: See note following RCW 26.16.030.
59.20.200
59.20.200 Landlord—Failure to carry out duties—
Notice from tenant—Time limits for landlord's remedial
action. If at any time during the tenancy the landlord fails to
carry out the duties required by RCW 59.20.130, the tenant
may, in addition to pursuit of remedies otherwise provided
the tenant by law, deliver written notice to the landlord,
which notice shall specify the property involved, the name of
the owner, if known, and the nature of the defective condition. For the purposes of this chapter, a reasonable time for
the landlord to commence remedial action after receipt of
such notice by the tenant shall be, except where circumstances are beyond the landlord's control;
(1) Not more than twenty-four hours, where the defective condition is imminently hazardous to life;
(2) Not more than forty-eight hours, where the landlord
fails to provide water or heat;
(3) Subject to the provisions of subsections (1) and (2) of
this section, not more than seven days in the case of a repair
under RCW 59.20.130(3);
(4) Not more than thirty days in all other cases.
In each instance the burden shall be on the landlord to
see that remedial work under this section is completed with
reasonable promptness.
Where circumstances beyond the landlord's control,
including the availability of financing, prevent the landlord
from complying with the time limitations set forth in this section, the landlord shall endeavor to remedy the defective condition with all reasonable speed. [1984 c 58 § 6.]
Severability—1984 c 58: "If any provision of this act or its application
to any person or circumstance is held invalid, the remainder of the act or the
application of the provision to other persons or circumstances is not
affected." [1984 c 58 § 18.]
59.20.210
59.20.210 Landlord—Failure to carry out duties—
Repairs effected by tenant—Bids—Notice—Deduction of
cost from rent—Limitations. (1) If at any time during the
tenancy, the landlord fails to carry out any of the duties
imposed by RCW 59.20.130, and notice of the defect is given
to the landlord pursuant to RCW 59.20.200, the tenant may
submit to the landlord or the landlord's designated agent by
certified mail or in person at least two bids to perform the
repairs necessary to correct the defective condition from
licensed or registered persons, or if no licensing or registration requirement applies to the type of work to be performed,
from responsible persons capable of performing such repairs.
Such bids may be submitted to the landlord at the same time
as notice is given pursuant to RCW 59.20.200.
(2) If the landlord fails to commence repair of the defective condition within a reasonable time after receipt of notice
from the tenant, the tenant may contract with the person submitting the lowest bid to make the repair, and upon the completion of the repair and an opportunity for inspection by the
landlord or the landlord's designated agent, the tenant may
deduct the cost of repair from the rent in an amount not to
exceed the sum expressed in dollars representing one month's
rental of the tenant's mobile home space in any calendar year.
When, however, the landlord is required to begin remedying
(2004 Ed.)
Manufactured/Mobile Home Landlord-Tenant Act
the defective condition within thirty days under RCW
59.20.200, the tenant cannot contract for repairs for at least
fifteen days following receipt of bids by the landlord. The
total costs of repairs deducted by the tenant in any calendar
year under this subsection shall not exceed the sum expressed
in dollars representing one month's rental of the tenant's
mobile home space.
(3) Two or more tenants shall not collectively initiate
remedies under this section. Remedial action under this section shall not be initiated for conditions in the design or construction existing in a mobile home park before June 7, 1984.
(4) The provisions of this section shall not:
(a) Create a relationship of employer and employee
between landlord and tenant; or
(b) Create liability under the worker's compensation act;
or
(c) Constitute the tenant as an agent of the landlord for
the purposes of mechanics' and materialmen's liens under
chapter 60.04 RCW.
(5) Any repair work performed under this section shall
comply with the requirements imposed by any applicable
code, statute, ordinance, or rule. A landlord whose property is
damaged because of repairs performed in a negligent manner
may recover the actual damages in an action against the tenant.
(6) Nothing in this section shall prevent the tenant from
agreeing with the landlord to undertake the repairs in return
for cash payment or a reasonable reduction in rent, the agreement to be between the parties, and this agreement does not
alter the landlord's obligations under this chapter. [1999 c
359 § 16; 1984 c 58 § 8.]
59.20.270
(2) The tenant shall not be obligated to pay rent in excess
of the diminished rental value of the mobile home space until
such defect or defects are corrected by the landlord or until
the court or arbitrator determines otherwise. [1999 c 359 §
17; 1984 c 58 § 9.]
Severability—1984 c 58: See note following RCW 59.20.200.
59.20.230
59.20.230 Defective condition—Unfeasible to remedy
defect—Termination of tenancy. If a court or arbitrator
determines a defective condition as described in RCW
59.20.130 to be so substantial that it is unfeasible for the
landlord to remedy the defect within the time allotted by
RCW 59.20.200, and that the tenant should not remain on the
mobile home space in its defective condition, the court or
arbitrator may authorize the termination of the tenancy. The
court or arbitrator shall set a reasonable time for the tenant to
vacate the premises. [1984 c 58 § 10.]
Severability—1984 c 58: See note following RCW 59.20.200.
59.20.240
59.20.240 Payment of rent condition to exercising
remedies. The tenant shall be current in the payment of rent
including all utilities which the tenant has agreed in the rental
agreement to pay before exercising any of the remedies
accorded the tenant under the provisions of this chapter:
PROVIDED, That this section shall not be construed as limiting the tenant's civil remedies for negligent or intentional
damages: PROVIDED FURTHER, That this section shall
not be construed as limiting the tenant's right in an unlawful
detainer proceeding to raise the defense that there is no rent
due and owing. [1984 c 58 § 7.]
Severability—1984 c 58: See note following RCW 59.20.200.
Severability—1984 c 58: See note following RCW 59.20.200.
59.20.250
59.20.220
59.20.220 Landlord—Failure to carry out duties—
Judgment by court or arbitrator for diminished rental
value and repair costs—Enforcement of judgment—
Reduction in rent. (1) If a court or an arbitrator determines
that:
(a) A landlord has failed to carry out a duty or duties
imposed by RCW 59.20.130; and
(b) A reasonable time has passed for the landlord to remedy the defective condition following notice to the landlord
under RCW 59.20.200 or such other time as may be allotted
by the court or arbitrator; the court or arbitrator may determine the diminution in rental value of the property due to the
defective condition and shall render judgment against the
landlord for the rent paid in excess of such diminished rental
value from the time of notice of such defect to the time of
decision and any costs of repair done pursuant to RCW
59.20.210 for which no deduction has been previously made.
Such decisions may be enforced as other judgments at law
and shall be available to the tenant as a set-off against any
existing or subsequent claims of the landlord.
The court or arbitrator may also authorize the tenant to
contract to make further corrective repairs. The court or arbitrator shall specify a time period in which the landlord may
make such repairs before the tenant may contract for such
repairs. Such repairs shall not exceed the sum expressed in
dollars representing one month's rental of the tenant's mobile
home space in any one calendar year.
(2004 Ed.)
59.20.250 Mediation of disputes by independent
third party. The landlord and tenant may agree in writing to
submit any dispute arising under this chapter or under the
terms, conditions, or performance of the rental agreement to
mediation by an independent third party or to settle the dispute through industry mediation procedures. The parties may
agree to submit any dispute to mediation before exercising
their right to arbitration under RCW 59.20.260. [1984 c 58 §
12.]
Severability—1984 c 58: See note following RCW 59.20.200.
59.20.260
59.20.260 Arbitration—Authorized—Selection of
arbitrator—Procedure. (1) The landlord and tenant may
agree in writing to submit a controversy arising under this
chapter to arbitration. The agreement shall contain the name
of the arbitrator agreed upon by the parties or the process for
selecting the arbitrator.
(2) The arbitration shall be administered under this chapter and chapter 7.04 RCW. [1984 c 58 § 13.]
Severability—1984 c 58: See note following RCW 59.20.200.
59.20.270
59.20.270 Arbitration—Application—Hearings—
Decisions. (1) If the landlord and tenant agree to submit the
matter to arbitration, the parties shall complete an application
for arbitration and deliver it to the selected arbitrator.
(2) The arbitrator shall schedule a hearing to be held no
later than ten days following receipt of the application.
[Title 59 RCW—page 39]
59.20.280
Title 59 RCW: Landlord and Tenant
(3) Reasonable notice of the hearings shall be given to
the parties, who shall appear and be heard either in person, by
counsel, or by other representative. Hearings shall be informal and the rules of evidence prevailing in judicial proceedings shall not be binding. Hearings may be public or private.
The proceedings may be recorded. Any oral or documentary
evidence and other data deemed relevant by the arbitrator
may be received in evidence. The arbitrator may administer
oaths, issue subpoenas, and require the attendance of witnesses and the production of books, papers, contracts, agreements, and documents deemed by the arbitrator to be material
to a just determination of the issues in dispute. If a person
refuses to obey a subpoena or refuses to be sworn to testify,
or any witness, party, or attorney is guilty of any contempt
while in attendance at any hearing held under this section, the
arbitrator may invoke the jurisdiction of any district or superior court, and the court shall have jurisdiction to issue an
appropriate order. Failure to obey the order may be punished
by the court as contempt.
(4) Within five days after the hearing, the arbitrator shall
make a written decision upon the issues presented. A copy of
the decision shall be mailed by certified mail or otherwise
delivered to the parties or their designated representatives.
The decision of the arbitrator shall be final and binding upon
all parties.
(5) If a dispute exists affecting more than one tenant in a
similar manner, the arbitrator may with the consent of the
parties consolidate the cases into a single proceeding.
(6) Decisions of the arbitrator shall be enforced or
appealed under chapter 7.04 RCW. [1984 c 58 § 14.]
Severability—1984 c 58: See note following RCW 59.20.200.
59.20.280
59.20.280 Arbitration—Fee. The administrative fee
for this arbitration procedure shall be established by agreement of the parties and the arbitrator and, unless otherwise
allocated by the arbitrator, shall be shared equally by the parties. However, upon either party signing an affidavit to the
effect that the party is unable to pay the share of the fee, that
portion of the fee may be waived or deferred. [1984 c 58 §
15.]
Severability—1984 c 58: See note following RCW 59.20.200.
59.20.290
59.20.290 Arbitration—Completion of arbitration
after giving notice. When a party gives notice of intent to
arbitrate by giving reasonable notice to the other party, that
party shall, at the same time, arrange for arbitration of the
grievance in the manner provided for in this chapter. The
arbitration shall be completed before the rental due date next
occurring after the giving of notice under this section, but in
no event shall the arbitrator have less than ten days to complete the arbitration process. [1984 c 58 § 16.]
Severability—1984 c 58: See note following RCW 59.20.200.
59.20.900
59.20.900 Severability—1977 ex.s. c 279. If any provision of this act, or its application to any person or circumstance is held invalid, the remainder of the act, or the application of the provision to other persons or circumstances is not
affected. [1977 ex.s. c 279 § 13.]
[Title 59 RCW—page 40]
59.20.901 Effective date—1999 c 359. This act is necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its
existing public institutions, and takes effect July 1, 1999.
[1999 c 359 § 21.]
59.20.901
Chapter 59.21 RCW
MOBILE HOME RELOCATION ASSISTANCE
Chapter 59.21
Sections
59.21.005
59.21.006
59.21.010
59.21.021
59.21.025
59.21.030
59.21.040
59.21.050
59.21.055
59.21.070
59.21.100
59.21.105
59.21.110
59.21.904
59.21.905
Declaration—Purpose.
Declaration—Intent—Purpose—1995 c 122.
Definitions.
Relocation assistance—Eligibility after December 31, 1995—
Amounts of assistance—Priority for distribution of assistance.
Relocation assistance—Sources other than fund—Reductions.
Notice—Requirements.
Relocation assistance—Exemptions.
Relocation fund—Administration—Tenant's application—
Form.
Fee imposed on transfer of title—Circumstances—Deposit—
Rules.
Rental agreement—Covenants.
Tenants—Waiver of rights—Attorney approval.
Existing older mobile homes—Forced relocation—Code
waiver.
Violations—Penalty.
Severability—1995 c 122.
Effective date—1995 c 122.
59.21.005 Declaration—Purpose. The legislature recognizes that it is quite costly to move a mobile home. Many
mobile home tenants need financial assistance in order to
move their mobile homes from a mobile home park. The purpose of this chapter is to provide a mechanism for assisting
mobile home tenants to relocate to suitable alternative sites
when the mobile home park in which they reside is closed or
converted to another use. [1995 c 122 § 2; 1991 c 327 § 8.]
59.21.005
59.21.006 Declaration—Intent—Purpose—1995 c
122. The legislature recognizes that, in the decision of Guimont et al. v. Clarke, 121 Wn.2d (1993), the Washington
supreme court held the mobile home relocation assistance
program of chapter 59.21 RCW invalid for its monetary burden on mobile home park-owners. However, during the program's operation, substantial funds were validly collected
from mobile home owners and accumulated in the mobile
home park relocation fund, created under the program. The
legislature intends to utilize those funds for the purposes for
which they were collected. The legislature also recognizes
that, for a period of almost three years since this state's courts
invalidated the program, no such assistance was available.
The most needy tenants may have been forced to sell or abandon rather than relocate their homes in the face of park closures. Because the purpose of the program was to assist relocation, those persons should be compensated in a like manner
to those who could afford to pay for relocation without assistance. To that end, the legislature has: (1) Repealed RCW
59.21.020, 59.21.035, 59.21.080, 59.21.085, 59.21.095,
59.21.900, 59.21.901, 59.21.902, and 59.21.903; (2)
amended RCW 59.21.010, 59.21.030, 59.21.040, 59.21.050,
59.21.070, *59.21.100, 59.21.110, and 43.84.092; (3) reenacted without amendment RCW 59.21.005 and **59.21.105;
and (4) added new sections to chapter 59.21 RCW. [1995 c
122 § 1.]
59.21.006
(2004 Ed.)
Mobile Home Relocation Assistance
Reviser's note: *(1) RCW 59.21.100 and 59.21.110 were not amended
by 1995 c 122.
**(2) RCW 59.21.105 was reenacted and amended by 1995 c 122.
59.21.010
59.21.010 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Director" means the director of the department of
community, trade, and economic development.
(2) "Department" means the department of community,
trade, and economic development.
(3) "Fund" means the mobile home park relocation fund
established under RCW 59.21.050.
(4) "Mobile home park" or "park" means real property
that is rented or held out for rent to others for the placement
of two or more mobile homes for the primary purpose of production of income, except where the real property is rented or
held out for rent for seasonal recreational purpose only and is
not intended for year-round occupancy.
(5) "Landlord" or "park-owner" means the owner of the
mobile home park that is being closed at the time relocation
assistance is provided.
(6) "Relocate" means to remove the mobile home from
the mobile home park being closed and to either reinstall it in
another location or to demolish it and purchase another
mobile/manufactured home constructed to the standards set
by the department of housing and urban development.
(7) "Relocation assistance" means the monetary assistance provided under this chapter. [2002 c 257 § 1; 1998 c
124 § 1; 1995 c 122 § 3; 1991 c 327 § 10; 1990 c 171 § 1;
1989 c 201 § 1.]
Effective date—2002 c 257: "This act takes effect January 1, 2003."
[2002 c 257 § 5.]
59.21.021
59.21.021 Relocation assistance—Eligibility after
December 31, 1995—Amounts of assistance—Priority for
distribution of assistance. (1) If a mobile home park is
closed or converted to another use after December 31, 1995,
eligible tenants shall be entitled to assistance on a first-come,
first-serve basis. The department shall give priority for distribution of relocation assistance to tenants residing in parks
that are closed as a result of park-owner fraud or as a result of
health and safety concerns as determined by the local board
of health. Payments shall be made upon the department's verification of eligibility, subject to the availability of remaining
funds. Eligibility for relocation assistance funds is limited to
low-income households. As used in this section, "lowincome household" means a single person, family, or unrelated persons living together whose adjusted income is less
than eighty percent of the median family income, adjusted for
household size, for the county where the mobile or manufactured home is located.
(2) Assistance for closures occurring after December 31,
1995, is limited to persons who maintain ownership of and
relocate their mobile home or who dispose of a home not
relocatable to a new site.
(3) Persons who removed and disposed of their mobile
home or maintained ownership of and relocated their mobile
homes are entitled to reimbursement of actual relocation
expenses up to seven thousand dollars for a double-wide
(2004 Ed.)
59.21.040
home and up to three thousand five hundred dollars for a single-wide home.
(4) Any individual or organization may apply to receive
funds from the mobile home park relocation fund, for use in
combination with funds from public or private sources,
toward relocation of tenants eligible under this section. Funds
received from the mobile home park relocation fund shall
only be used for relocation assistance expenses or other
mobile/manufactured home ownership expenses, that include
down payment assistance, if the owners are not planning to
relocate their mobile home as long as their original home is
removed from the park. [2002 c 257 § 2; 1998 c 124 § 2;
1995 c 122 § 5.]
Effective date—2002 c 257: See note following RCW 59.21.010.
59.21.025
59.21.025 Relocation assistance—Sources other than
fund—Reductions. (1) If financial assistance for relocation
is obtained from sources other than the mobile home park
relocation fund established under this chapter, then the relocation assistance provided to any person under this chapter
shall be reduced as necessary to ensure that no person
receives from all sources combined more than: (a) That person's actual cost of relocation; or (b) seven thousand dollars
for a double-wide mobile home and three thousand five hundred dollars for a single-wide mobile home.
(2) When a person receives financial assistance for relocation from a source other than the mobile home park relocation assistance fund, then the assistance received from the
fund will be the difference between the maximum amount to
which a person is entitled under RCW 59.21.021(3) and the
amount of assistance received from the outside source.
(3) If the amount of assistance received from an outside
source exceeds the maximum amounts of assistance to which
a person is entitled under RCW 59.21.021(3), then that person will not receive any assistance from the mobile home
park relocation assistance fund. [1998 c 124 § 3; 1995 c 122
§ 6.]
59.21.030
59.21.030 Notice—Requirements. Notice required by
RCW 59.20.080 before park closure or conversion of the
park, whether twelve months or longer, shall be given to the
director and all tenants in writing, and posted at all park
entrances. A copy of the closure notice must be provided with
all month-to-month rental agreements signed after the original closure notice date. Notice to the director must include a
good faith estimate of the timetable for removal of the mobile
homes and the reason for closure. Notice must also be
recorded in the office of the county auditor for the county
where the mobile home park is located. [1995 c 122 § 7;
1990 c 171 § 3; 1989 c 201 § 3.]
59.21.040
59.21.040 Relocation assistance—Exemptions. A
tenant is not entitled to relocation assistance under this chapter if: (1) The tenant has given notice to the landlord of his or
her intent to vacate the park and terminate the tenancy before
any written notice of closure pursuant to RCW
59.20.080(1)(e) has been given; (2) the tenant purchased a
mobile home already situated in the park or moved a mobile
home into the park after a written notice of closure pursuant
to RCW 59.20.090 has been given and the person received
[Title 59 RCW—page 41]
59.21.050
Title 59 RCW: Landlord and Tenant
actual prior notice of the change or closure; or (3) the tenant
receives assistance from an outside source that exceeds the
maximum amounts of assistance to which a person is entitled
under RCW 59.21.021(3). However, no tenant may be denied
relocation assistance under subsection (1) of this section if
the tenant has remained on the premises and continued paying rent for a period of at least six months after giving notice
of intent to vacate and before receiving formal notice of a closure or change of use. [1998 c 124 § 4; 1995 c 122 § 8; 1989
c 201 § 4.]
59.21.050 Relocation fund—Administration—Tenant's application—Form. (1) The existence of the mobile
home park relocation fund in the custody of the state treasurer
is affirmed. Expenditures from the fund may be used only for
relocation assistance awarded under this chapter. Only the
director or the director's designee may authorize expenditures
from the fund. All relocation payments to tenants shall be
made from the fund. The fund is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is
required for expenditures.
(2) A park tenant is eligible for assistance under this
chapter only after an application is submitted by that tenant or
an organization acting on the tenant's account under RCW
59.21.021(4) on a form approved by the director which shall
include:
(a) For those persons who maintained ownership of and
relocated their homes or removed their homes from the park:
(i) A copy of the notice from the park-owner, or other adequate proof, that the tenancy is terminated due to closure of
the park or its conversion to another use; (ii) a copy of the
rental agreement then in force, or other proof that the applicant was a tenant at the time of notice of closure; (iii) a copy
of the contract for relocating the home which includes the
date of relocation, or other proof of actual relocation
expenses incurred on a date certain; and (iv) a statement of
any other available assistance;
(b) For those persons who sold their homes and incurred
no relocation expenses: (i) A copy of the notice from the
park-owner, or other adequate proof, that the tenancy is terminated due to closure of the park or its conversion to another
use; (ii) a copy of the rental agreement then in force, or other
proof that the applicant was a tenant at the time of notice of
closure; and (iii) a copy of the record of title transfer issued
by the department of licensing when the tenant sold the home
rather than relocate it due to park closure or conversion.
(3) The department may deduct a percentage amount of
the fee collected under RCW 59.21.055, not to exceed five
percent of the fees received, for administration expenses
incurred by the department. [2002 c 257 § 4; 1998 c 124 § 5;
1995 c 122 § 9; 1991 sp.s. c 13 § 74; 1991 c 327 § 12; 1990 c
171 § 5; 1989 c 201 § 5.]
59.21.050
Effective date—2002 c 257: See note following RCW 59.21.010.
Effective dates—Severability—1991 sp.s. c 13: See notes following
RCW 18.08.240.
59.21.055 Fee imposed on transfer of title—Circumstances—Deposit—Rules. (1) A one hundred dollar fee is
imposed upon the purchaser on every transfer of title issued
under chapter 46.12 RCW on a mobile home one year old or
more where (a) the ownership of the mobile home changes;
59.21.055
[Title 59 RCW—page 42]
and (b) the mobile home is located in a mobile home park. A
transfer of title does not include the addition or deletion of a
spouse co-owner or secured interest.
(2) Mobile homes with a sale price of less than five thousand dollars are not subject to the fee imposed in subsection
(1) of this section.
(3) The department of licensing or its agents shall collect
the fee when processing an application for transfer of title.
The fee collected under this section shall be forwarded to the
state treasurer for deposit into the mobile home park relocation fund created in this chapter. The department of licensing
may deduct a percentage amount, not to exceed two percent
of the fees collected, for the collection expenses incurred by
the department of licensing.
(4) The department of licensing and the state treasurer
may adopt rules necessary to carry out this section. [2002 c
257 § 3.]
Effective date—2002 c 257: See note following RCW 59.21.010.
59.21.070
59.21.070 Rental agreement—Covenants. If the
rental agreement includes a covenant by the landlord as
described in RCW 59.20.060(1)(g)(i), the covenant runs with
the land and is binding upon the purchasers, successors, and
assigns of the landlord. [1995 c 122 § 10; 1989 c 201 § 10.]
59.21.100
59.21.100 Tenants—Waiver of rights—Attorney
approval. A tenant may, with the written approval of his or
her attorney at law, waive or compromise their right to relocation assistance under this chapter. [1989 c 201 § 14.]
59.21.105
59.21.105 Existing older mobile homes—Forced relocation—Code waiver. (1) The legislature finds that existing
older mobile homes provide affordable housing to many persons, and that requiring these homes that are legally located
in mobile home parks to meet new fire, safety, and construction codes because they are relocating due to the closure or
conversion of the mobile home park, compounds the economic burden facing these tenants.
(2) Mobile homes that are relocated due to either the closure or conversion of a mobile home park, may not be
required by any city or county to comply with the requirements of any applicable fire, safety, or construction code for
the sole reason of its relocation. This section shall only apply
if the original occupancy classification of the building is not
changed as a result of the move.
(3) This section shall not apply to mobile homes that are
substantially remodeled or rehabilitated, nor to any work performed in compliance with installation requirements. For the
purpose of determining whether a moved mobile home has
been substantially remodeled or rebuilt, any cost relating to
preparation for relocation or installation shall not be considered. [1995 c 122 § 11; 1991 c 327 § 16.]
59.21.110
59.21.110 Violations—Penalty. Any person who
intentionally violates, intentionally attempts to evade, or
intentionally evades the provisions of this chapter is guilty of
a misdemeanor. [1991 c 327 § 14; 1989 c 201 § 15.]
59.21.904
59.21.904 Severability—1995 c 122. If any provision
of this act or its application to any person or circumstance is
(2004 Ed.)
Office of Mobile Home Affairs—Resident-Owned Mobile Home Parks
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1995 c 122 § 14.]
59.21.905
59.21.905 Effective date—1995 c 122. This act is necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its
existing public institutions, and shall take effect immediately
[April 20, 1995]. [1995 c 122 § 15.]
Chapter 59.22 RCW
OFFICE OF MOBILE HOME AFFAIRS—
RESIDENT-OWNED MOBILE HOME PARKS
Chapter 59.22
Sections
59.22.010
59.22.020
59.22.030
59.22.032
59.22.034
59.22.036
59.22.038
59.22.039
59.22.050
59.22.070
59.22.080
59.22.085
59.22.090
Legislative findings.
Definitions.
Mobile home park purchase account.
Loans for mobile home park conversion costs—Resident eligibility—Flexible repayment terms.
Loan duration—Rate of interest—Security—Administration
of loan.
Requirements for financing approval—Department's duties.
Eligibility for loans—Amount of loans—Determining factors.
Technical assistance for mobile home park conversion.
Office of mobile home affairs—Duties.
Mobile home affairs account.
Transfer of title—Fee—Department of licensing—Rules.
Transfer of title—Fee supersedes other fee.
Manufactured housing task force—Duties—Membership.
Manufactured/mobile home landlord-tenant act: Chapter 59.20 RCW.
59.22.010
59.22.010 Legislative findings. (1) The legislature
finds:
(a) That manufactured housing and mobile home parks
provide a source of low-cost housing to the low income, elderly, poor and infirmed, without which they could not afford
private housing; but rising costs of mobile home park development and operation, as well as turnover in ownership, has
resulted in mobile home park living becoming unaffordable
to the low income, elderly, poor and infirmed, resulting in
increased numbers of homeless persons, and persons who
must look to public housing and public programs, increasing
the burden on the state to meet the housing needs of its residents;
(b) That state government can play a vital role in
addressing the problems confronted by mobile home park
residents by providing assistance which makes it possible for
mobile home park residents to acquire the mobile home parks
in which they reside and convert them to resident ownership;
and
(c) That to accomplish this purpose, information and
technical support shall be made available through the department.
(2) Therefore, it is the intent of the legislature, in order to
maintain low-cost housing in mobile home parks to benefit
the low income, elderly, poor and infirmed, to encourage and
facilitate the conversion of mobile home parks to resident
ownership, to protect low-income mobile home park residents from both physical and economic displacement, to
obtain a high level of private financing for mobile home park
conversions, and to help establish acceptance for residentowned mobile home parks in the private market. [1995 c 399
§ 154; 1987 c 482 § 1.]
(2004 Ed.)
59.22.020
59.22.020
59.22.020 Definitions. The following definitions shall
apply throughout this chapter unless the context clearly
requires otherwise:
(1) "Account" means the mobile home affairs account
created under RCW 59.22.070.
(2) "Affordable" means that, where feasible, low-income
residents should not pay more than thirty percent of their
monthly income for housing costs.
(3) "Conversion costs" includes the cost of acquiring the
mobile home park, the costs of planning and processing the
conversion, the costs of any needed repairs or rehabilitation,
and any expenditures required by a government agency or
lender for the project.
(4) "Department" means the department of community,
trade, and economic development.
(5) "Fee" means the mobile home title transfer fee
imposed under RCW 59.22.080.
(6) "Fund" or "park purchase account" means the mobile
home park purchase account created pursuant to RCW
59.22.030.
(7) "Housing costs" means the total cost of owning,
occupying, and maintaining a mobile home and a lot or space
in a mobile home park.
(8) "Individual interest in a mobile home park" means
any interest which is fee ownership or a lesser interest which
entitles the holder to occupy a lot or space in a mobile home
park for a period of not less than either fifteen years or the life
of the holder. Individual interests in a mobile home park
include, but are not limited to, the following:
(a) Ownership of a lot or space in a mobile home park or
subdivision;
(b) A membership or shares in a stock cooperative, or a
limited equity housing cooperative; or
(c) Membership in a nonprofit mutual benefit corporation which owns, operates, or owns and operates the mobile
home park.
(9) "Low-income resident" means an individual or
household who resided in the mobile home park prior to
application for a loan pursuant to this chapter and with an
annual income at or below eighty percent of the median
income for the county of standard metropolitan statistical
area of residence. Net worth shall be considered in the calculation of income with the exception of the resident's
mobile/manufactured home which is used as their primary
residence.
(10) "Low-income spaces" means those spaces in a
mobile home park operated by a resident organization which
are occupied by low-income residents.
(11) "Mobile home park" means a mobile home park, as
defined in *RCW 59.20.030(4), or a manufactured home park
subdivision as defined by *RCW 59.20.030(6) created by the
conversion to resident ownership of a mobile home park.
(12) "Resident organization" means a group of mobile
home park residents who have formed a nonprofit corporation, cooperative corporation, or other entity or organization
for the purpose of acquiring the mobile home park in which
they reside and converting the mobile home park to resident
ownership. The membership of a resident organization shall
include at least two-thirds of the households residing in the
mobile home park at the time of application for assistance
from the department.
[Title 59 RCW—page 43]
59.22.030
Title 59 RCW: Landlord and Tenant
(13) "Resident ownership" means, depending on the context, either the ownership, by a resident organization, as
defined in this section, of an interest in a mobile home park
which entitles the resident organization to control the operations of the mobile home park for a term of no less than fifteen years, or the ownership of individual interests in a
mobile home park, or both.
(14) "Landlord" shall have the same meaning as it does
in RCW 59.20.030.
(15) "Manufactured housing" means residences constructed on one or more chassis for transportation, and which
bear an insignia issued by a state or federal regulatory agency
indication compliance with all applicable construction standards of the United States department of housing and urban
development.
(16) "Mobile home" shall have the same meaning as it
does in RCW 46.04.302.
(17) "Mobile home lot" shall have the same meaning as
it does in RCW 59.20.030.
(18) "Tenant" means a person who rents a mobile home
lot for a term of one month or longer and owns the mobile
home on the lot. [1995 c 399 § 155; 1993 c 66 § 9; 1991 c
327 § 2; 1988 c 280 § 3; 1987 c 482 § 2.]
*Reviser's note: RCW 59.20.030 was amended by 1999 c 359 § 2,
changing subsection (4) to subsection (6) and subsection (6) to subsection
(8).
59.22.030
59.22.030 Mobile home park purchase account. The
mobile home park purchase account is hereby created in the
state treasury. The purpose of this account is to provide loans
according to the provisions of this chapter and for related
administrative costs of the department. The account shall
include appropriations, loan repayments, and any other
money from private sources made available to the state for
the purposes of this chapter. Owners of mobile home parks
shall not be assessed for the purposes of this account. [1991
sp.s. c 13 § 89; 1987 c 482 § 4.]
Reviser's note: Substantial portions of 1987 c 482, authorizing loans
from the mobile home park purchase fund [account], were vetoed by the governor.
Effective dates—Severability—1991 sp.s. c 13: See notes following
RCW 18.08.240.
59.22.032
59.22.032 Loans for mobile home park conversion
costs—Resident eligibility—Flexible repayment terms.
(1) The department may make loans from the fund to resident
organizations for the purpose of financing mobile home park
conversion costs. The department may only make loans to
resident organizations of mobile home parks where a significant portion of the residents are low-income or infirm.
(2) The department may make loans from the fund to
low-income residents of mobile home parks converted to resident ownership or which plan to convert to resident ownership. The purpose of providing loans under this subsection is
to reduce the monthly housing costs for low-income residents
to an affordable level. The department may establish flexible
repayment terms for loans provided under this subsection if
the terms are necessary to reduce the monthly housing costs
for low-income residents to an affordable level, and do not
represent an unacceptable risk to the security of the fund.
Flexible repayment terms may include, but are not limited to,
[Title 59 RCW—page 44]
graduated payment schedules with negative amortization.
[1993 c 66 § 10.]
59.22.034
59.22.034 Loan duration—Rate of interest—Security—Administration of loan. (1) Any loans granted under
RCW 59.22.032 shall be for a term of no more than thirty
years.
(2) The department shall establish the rate of interest to
be paid on loans made from the fund.
(3) The department shall obtain security for loans made
under this chapter. The security may be in the form of a note,
deed of trust, assignment of lease, or other form of security
on real or personal property which the department determines
is adequate to protect the security of the fund and the interests
of the state. To the extent applicable, the documents evidencing the security shall be recorded or referenced in a recorded
document in the office of the county auditor of the county in
which the mobile home park is located.
(4) The department may contract with private lenders,
nonprofit organizations, or units of local government to provide program administration and to service loans made under
this chapter. [1993 c 66 § 11.]
59.22.036
59.22.036 Requirements for financing approval—
Department's duties. Before providing financing under this
chapter, the department shall require:
(1) Verification that at least two-thirds of the households
residing in the mobile home park support the plan for acquisition and conversion of the park;
(2) Verification that either no park residents will be
involuntarily displaced as a result of the park conversion, or
the impacts of displacement will be mitigated so as not to
impose a hardship on the displaced resident;
(3) Projected costs and sources of funds for conversion
activities;
(4) A projected operating budget for the park during and
after conversion; and
(5) A management plan for the conversion and operation
of the park. [1993 c 66 § 12.]
59.22.038
59.22.038 Eligibility for loans—Amount of loans—
Determining factors. The department shall consider the following factors in determining the eligibility for, and the
amount, of loans made under this chapter:
(1) The reasonableness of the conversion costs relating
to repairs, rehabilitation, construction, or other costs;
(2) The number of available and affordable mobile home
park spaces in the general area;
(3) The adequacy of the management plan for the conversion and operation of the park; and
(4) Other factors established by the department by rule.
[1993 c 66 § 13.]
59.22.039
59.22.039 Technical assistance for mobile home park
conversion. The department may provide technical assistance to resident organizations who wish to convert the
mobile home park in which they reside to resident ownership.
Technical assistance does not include details connected with
the sale or conversion of a mobile home park which would
require the department to act in a representative capacity, or
(2004 Ed.)
Office of Mobile Home Affairs—Resident-Owned Mobile Home Parks
the drafting of documents affecting legal or property rights of
the parties by the department. [1993 c 66 § 14.]
59.22.050
59.22.050 Office of mobile home affairs—Duties. (1)
In order to provide general assistance to mobile home resident organizations, park owners, and landlords and tenants,
the department shall establish an office of mobile home
affairs which will serve as the coordinating office within state
government for matters relating to mobile homes or manufactured housing.
This office will provide an ombudsman service to mobile
home park owners and mobile home tenants with respect to
problems and disputes between park owners and park residents and to provide technical assistance to resident organizations or persons in the process of forming a resident organization pursuant to chapter 59.22 RCW. The office will keep
records of its activities in this area.
(2) The office shall perform all the consumer complaint
and related functions of the state administrative agency that
are required for purposes of complying with the regulations
established by the federal department of housing and urban
development for manufactured housing, including the preparation and submission of the state administrative plan.
(3) The office shall administer the mobile home relocation assistance program established in chapter 59.21 RCW,
including verifying the eligibility of tenants for relocation
assistance. [1991 c 327 § 3; 1989 c 294 § 1; 1988 c 280 § 2.]
59.22.070
59.22.070 Mobile home affairs account. There is created in the custody of the state treasurer a special account
known as the mobile home affairs account.
Disbursements from this special account shall be as follows:
(1) For the two-year period beginning July 1, 1988, forty
thousand dollars, or so much thereof as may be necessary for
costs incurred in registering landlords and collecting fees,
and thereafter five thousand dollars per year for that purpose.
(2) All remaining amounts shall be remitted to the
department for the purpose of implementing RCW 59.22.050
and *59.22.060. [1995 c 399 § 156; 1989 c 201 § 8; 1988 c
280 § 5.]
*Reviser's note: RCW 59.22.060 was repealed by 1996 c 88 § 1, effective July 1, 1996.
59.22.080
59.22.080 Transfer of title—Fee—Department of
licensing—Rules. (1) There is hereby imposed a fee of fifteen dollars on every transfer of title issued pursuant to chapter 46.12 RCW on a new or used mobile home where ownership of the mobile home is changed and on each application
for the elimination of title under chapter 65.20 RCW. A transfer of title does not include the addition or deletion of a
spouse co-owner or a secured interest. The department of
licensing or its agents shall collect the fee when processing
the application for transfer or elimination of title. The fee collected under this section shall be forwarded to the state treasurer. The state treasurer shall deposit each fee collected in
the mobile home affairs account created by RCW 59.22.070.
(2) The department of licensing and the state treasurer
may enact any rules necessary to carry out this section. [1991
c 327 § 1.]
(2004 Ed.)
59.22.090
59.22.085 Transfer of title—Fee supersedes other fee.
The fifteen-dollar fee imposed in RCW 59.22.080 on the
transfer or elimination of mobile home titles for deposit in the
mobile home affairs account, shall supersede the fifteen dollars collected in *RCW 59.21.060 for deposit into the mobile
home affairs account on July 1, 1991. [1991 c 327 § 7.]
59.22.085
*Reviser's note: RCW 59.21.060 expired July 1, 1992.
59.22.090 Manufactured housing task force—
Duties—Membership. (1) A manufactured housing task
force is established to study and make recommendations concerning the structure state government should use to regulate
manufactured housing in this state. In conducting this study,
the task force shall review the structures used in other states,
including those states with a commission structure. The task
force shall consider the report prepared by the department of
licensing, the department of labor and industries, and the
department of community, trade, and economic development
on consolidating mobile home-related functions in conducting its study. The task force may not consider any form of
mobile home rent control, but shall consider mobile home
park siting and density regulatory issues.
(2) The task force shall terminate on December 31, 1992.
(3) The task force shall consist of the following members:
(a) Two members of the house of representatives
appointed by the speaker of the house of representatives,
from different political caucuses;
(b) Two members of the senate appointed by the president of the senate, from different political caucuses;
(c) Two members who represent mobile home park owners, appointed by the governor;
(d) Two members who represent mobile home owners,
appointed by the governor;
(e) One member who represents mobile home manufacturers, appointed by the governor;
(f) One member who represents mobile home dealers,
appointed by the governor;
(g) One member who represents mobile home transporters, appointed by the governor;
(h) One member who represents local building officials,
appointed by the governor;
(i) One member who is either an elected or appointed
government official of a county with a population of one hundred thousand or more persons, appointed by the governor;
(j) One member who is either an elected or appointed
government official of a county with a population of less than
one hundred thousand persons, appointed by the governor;
(k) One member who is either an elected or appointed
government official of a city with a population of thirty-five
thousand persons, appointed by the governor;
(l) One member who is either an elected or appointed
government official of a city with a population of less than
thirty-five thousand persons, appointed by the governor;
(m) One member who represents local health officials,
appointed by the governor; and
(n) The director, or the director's designee from the
department of community, trade, and economic development,
the department of licensing, the department of labor and
industries, and the attorney general's office. The designees
shall be nonvoting, ex officio members of the task force.
59.22.090
[Title 59 RCW—page 45]
Chapter 59.23
Title 59 RCW: Landlord and Tenant
(4) The members of the task force shall select the chair or
co-chairs of the task force.
(5) Staff assistance for the task force will be provided by
legislative staff and staff from the agencies or offices listed in
subsection (3)(n) of this section. [1998 c 245 § 105; 1991 c
327 § 4.]
Chapter 59.23 RCW
MOBILE HOME PARKS—RESIDENT OWNERSHIP
IN EVENT OF SALE
Chapter 59.23
Sections
59.23.005
59.23.010
59.23.015
59.23.020
59.23.025
59.23.030
59.23.035
59.23.040
Findings—Intent.
Obligation of good faith.
Application of chapter—Definition of "notice."
Definitions.
Notice to qualified tenant organization of sale of mobile home
park—Time frame for negotiations—Terms—Transfer or
sale to relatives.
Improper notice by mobile home park owner—Sale may be set
aside—Attorneys' fees.
Notice to mobile home park owner of sale of tenant's mobile
home—Time frame for negotiations—Terms—Transfer or
sale to relatives.
Improper notice by mobile home owner—Sale may be set
aside—Attorneys' fees.
59.23.005 Findings—Intent. The legislature finds that
mobile home parks provide a significant source of homeownership for many Washington residents, but increasing rents
and low vacancy rates, as well as the pressure to convert
mobile home parks to other uses, increasingly make mobile
home park living insecure for mobile home owners. The legislature also finds that many homeowners who reside in
mobile home parks are also those residents most in need of
reasonable security in the siting of their manufactured homes.
It is the intent of the legislature to encourage and facilitate the
conversion of mobile home parks to resident ownership in the
event of a voluntary sale of the park. [1993 c 66 § 1.]
59.23.005
59.23.010 Obligation of good faith. An obligation of
good faith is imposed on the parties in the conduct of transactions affected by this chapter. Rights created by this chapter
are forfeited by any party failing to act in good faith. Further
obligations under this chapter on other parties are also discharged by a failure to act in good faith. [1993 c 66 § 2.]
59.23.010
59.23.015 Application of chapter—Definition of
"notice." If a qualified tenant organization gives written
notice to the mobile home park owner where the tenants
reside that they have a present and continuing desire to purchase the mobile home park, the park may then be sold only
according to this chapter.
"Notice" for the purposes of this section means a writing
signed by sixty percent of the tenants in the park indicating
that they desire to participate in the purchase of the park, and
that they are contractually bound to the other signators of the
notice to participate by purchasing an ownership interest that
will entitle them to occupy a mobile home space for the
remainder of their life or for a term of at least fifteen years.
[1993 c 66 § 3.]
59.23.015
59.23.020 Definitions. (1) "Mobile home park" means
the same as defined in RCW 59.20.030.
59.23.020
[Title 59 RCW—page 46]
(2)(a) The terms "sold" or "sale" for the purposes of this
chapter have their ordinary meaning and include: (i) A conveyance, grant, assignment, quitclaim, or transfer of ownership or title to real property and improvements that comprise
the mobile home park, or mobile homes, for a valuable consideration; (ii) a contract for the conveyance, grant, assignment, quitclaim, or transfer; (iii) a lease with an option to purchase the real property and improvements, or mobile home,
or any estate or interest therein; or (iv) other contract under
which possession of the property is given to the purchaser, or
any other person by his or her direction, where title is retained
by the vendor as security for the payment of the purchase
price. These terms also include any other transfer of the beneficial or equitable interest in the mobile home park such as a
transfer of equity stock or other security evidencing ownership that results in a change in majority interest ownership.
(b) The terms "sale" or "sold" do not include: (i) A transfer by gift, devise, or inheritance; (ii) a transfer of a leasehold
interest other than of the type described in this subsection;
(iii) a cancellation or forfeiture of a vendee's interest in a contract for the sale of the mobile home park; (iv) a deed in lieu
of foreclosure of a mortgage; (v) the assumption by a grantee
of the balance owing on an obligation that is secured by a
mortgage or deed in lieu of forfeiture of the vendee's interest
in a contract of sale where no consideration passes otherwise;
(vi) the partition of property by tenants in common by agreement or as the result of a court decree; (vii) a transfer, conveyance, or assignment of property or interest in property
from one spouse to the other in accordance with the terms of
a decree of divorce or dissolution or in fulfillment of a property settlement agreement incident thereto; (viii) the assignment or other transfer of a vendor's interest in a contract for
the sale of real property, even though accompanied by a conveyance of the vendor's interest in the real property involved;
(ix) transfers by appropriation or decree in condemnation
proceedings brought by the United States, the state or any
political subdivision thereof, or a municipal corporation; (x)
a mortgage or other transfer of an interest in real property or
mobile home merely to secure a debt, or the assignment
thereof; (xi) a transfer or conveyance made under an order of
sale by the court in a mortgage or lien foreclosure proceeding
or upon execution of a judgment; (xii) a deed in lieu of foreclosure to satisfy a mortgage; (xiii) a conveyance to the federal housing administration or veterans' administration by an
authorized mortgagee made under a contract of insurance or
guarantee with the federal housing administration or veterans' administration; (xiv) a transfer in compliance with the
terms of any lease or contract upon which notice has already
been given under this chapter, or where the lease or contract
was entered into before July 25, 1993; or (xv) a transfer to a
corporation or partnership the majority interest of which is
wholly owned by the transferor.
(3) A "qualified tenant organization" means a formal
organization of tenants in the park in question, organized for
the purpose of purchasing the park, with membership made
available to all tenants with the only requirements for membership being: (a) Payment of reasonable dues; and (b) being
a tenant in the park. [1993 c 66 § 4.]
59.23.025
59.23.025 Notice to qualified tenant organization of
sale of mobile home park—Time frame for negotiations—
(2004 Ed.)
Rental Security Deposit Guarantee Program
Terms—Transfer or sale to relatives. If notice of a desire
to purchase has been given under RCW 59.23.015, a park
owner shall notify the qualified tenant organization that an
agreement to purchase and sell has been reached and the
terms of the agreement, including the availability and terms
of seller financing, before closing a sale with any other person or entity. If, within thirty days after the actual notice has
been received, the qualified tenant organization tenders to the
park owner an amount equal to two percent of the agreed purchase price, refundable only according to this chapter,
together with a fully executed purchase and sale agreement at
least as favorable to the park owner as the original agreement,
the mobile home park owner must sell the mobile home park
to the qualified tenant organization. The tenant organization
must then close the sale on the same terms as outlined in the
original agreement between the park owner and the prospective purchaser. In the case of seller financing, a mobile home
park owner may decline to sell the mobile home park to the
qualified tenant organization if, based on reasonable and
objective evidence, to do so would present a greater financial
risk to the seller than would selling on the same terms to the
original offeror.
If the qualified tenant organization fails to perform under
the terms of the agreement the owner may proceed with the
sale to any other party at these terms. If the park owner thereafter elects to accept an offer at a price lower than the price
specified in the notice, the homeowners will have an additional ten days to meet the price and terms and conditions of
this lower offer by executing a contract. If the qualified tenant organization fails to perform following two such opportunities, the park owner shall be free for a period of twenty-four
months to execute a sale of the park to any other party.
A mobile home park owner who enters into a signed
agreement to sell or transfer the ownership of the mobile
home park to a relative or a legal entity composed of relatives
or established for the benefit of relatives of the mobile home
park owner, who signs an agreement stating the intention to
maintain the property as a mobile home park is exempted
from the requirements of this section and RCW 59.23.030.
[1993 c 66 § 5.]
59.23.030
59.23.030 Improper notice by mobile home park
owner—Sale may be set aside—Attorneys' fees. Failure
on the part of a mobile home park owner to give notice as
required by this chapter renders a sale of the mobile home
park that occurs within thirty days of the time the qualified
tenant organization knows or has reason to know that a violation of the notice provisions of RCW 59.23.015 has occurred,
voidable upon application to superior court after notice and
hearing. If the court determines that the notice provisions of
this chapter have been violated, the court shall issue an order
setting aside the improper sale. In an action brought under
this section, the court shall award the prevailing party attorneys' fees and costs. For the purposes of this section, a "prevailing party" includes any third party purchaser who appears
and successfully defends his or her interest. [1993 c 66 § 6.]
59.23.035
59.23.035 Notice to mobile home park owner of sale
of tenant's mobile home—Time frame for negotiations—
Terms—Transfer or sale to relatives. If a mobile home
(2004 Ed.)
Chapter 59.24
park owner gives written notice to all tenants residing in the
park, including new tenants at the commencement of their
tenancy, that he or she has a desire to purchase their mobile
homes, the mobile homes may be sold only according to the
following provisions:
(1) Before transfer of title to any other person or entity,
the mobile home owner shall notify the park owner if an
agreement to purchase and sell has been reached and specify
the terms of the agreement.
(2) If, within ten days of the notice, the mobile home
park owner tenders to the mobile home owner an amount
equal to five percent of the agreed purchase price, together
with a fully executed purchase and sale agreement, the
mobile home owner must sell the mobile home to the mobile
home park owner.
(3) The mobile home park owner must then perform
under the agreement and stand ready to close the sale according to the terms of the agreement between buyer and seller.
Failure to perform under the terms of the agreement on the
part of the mobile home park owner results in the forfeiture of
the five percent deposit and voids the purchase and sale
agreement.
(4) The rights of the mobile home park owner or of the
mobile home owner under the purchase and sale agreement,
including the deposit, are not forfeited if the transaction fails
to close due to no fault or inability to perform on the part of
the seller.
(5) In the case of seller financing, the mobile home
owner may decline to sell to the mobile home park owner if,
based on reasonable and objective evidence, to do so would
present a greater financial risk to the seller than would selling
to the original offeror.
A mobile home owner who enters into a signed agreement to sell or transfer the ownership of the mobile home to
a relative is exempted from the requirements of this section
and RCW 59.23.040. [1993 c 66 § 7.]
59.23.040
59.23.040 Improper notice by mobile home owner—
Sale may be set aside—Attorneys' fees. Failure on the part
of a mobile home owner to give notice as required by this
chapter renders a sale of the mobile home that occurs within
sixty days of the time the mobile home park owner knows or
has reason to know that a violation of the notice provisions of
RCW 59.23.035 has occurred, voidable upon application to
superior court after notice and hearing. If the court determines that the notice provisions of this chapter have been violated, the court shall issue an order setting aside the improper
sale. In an action brought under this section, the court shall
award the prevailing party attorneys' fees and costs. For the
purposes of this section a "prevailing party" includes a third
party purchaser who appears and successfully defends his or
her interest. [1993 c 66 § 8.]
Chapter 59.24
Chapter 59.24 RCW
RENTAL SECURITY DEPOSIT
GUARANTEE PROGRAM
Sections
59.24.010
59.24.020
59.24.030
Legislative findings.
Program established—Grants—Eligible participants.
Contracts required—Terms.
[Title 59 RCW—page 47]
59.24.010
59.24.040
59.24.050
59.24.060
59.24.900
Title 59 RCW: Landlord and Tenant
Authority of grant recipients.
Rules.
Sources of funds.
Severability—1988 c 237.
59.24.010 Legislative findings. The legislature finds
that one of the most difficult problems that temporarily
homeless persons or families face in seeking permanent
housing is the necessity of paying a security deposit in addition to paying the first month's rent. The security deposit
requirement is often impossible for the temporarily homeless
person or family to meet because their savings are depleted
due, for example, to purchasing temporary shelter in a motel
when space at an emergency shelter was not available. A program to guarantee the security deposit for the temporarily
homeless person or family will help the poor in this state
achieve adequate permanent shelter. [1988 c 237 § 1.]
59.24.010
59.24.020 Program established—Grants—Eligible
participants. (1) The department of community, trade, and
economic development shall establish the rental security
deposit guarantee program. Through this program the department of community, trade, and economic development shall
provide grants and technical assistance to local governments
or nonprofit corporations, including local housing authorities
as defined in RCW 35.82.030, who operate emergency housing shelters or transitional housing programs. The grants are
to be used for the payment of residential rental security
deposits under this chapter. The technical assistance is to help
the local government or nonprofit corporation apply for
grants and carry out the program. In order to be eligible for
grants under this program, the recipient local government or
nonprofit corporation shall provide fifteen percent of the total
amount needed for the security deposit. The security deposit
may include last month's rent where such rent is required as a
normal practice by the landlord.
(2) The grants and matching funds shall be placed by the
recipient local government or nonprofit corporation in a
revolving loan fund and deposited in a bank or savings institution in an account that is separate from all other funds of the
recipient. The funds and interest earned on these funds shall
be utilized only as collateral to guarantee the payment of a
security deposit required by a residential rental property
owner as a condition for entering into a rental agreement with
a prospective tenant.
(3) Prospective tenants who are eligible to participate in
the rental security deposit guarantee program shall be limited
to homeless persons or families who are residing in an emergency shelter or transitional housing operated by a local government or a nonprofit corporation, or to families who are
temporarily residing in a park, car, or are otherwise without
adequate shelter. The local government or nonprofit corporation shall make a determination regarding the person's or
family's eligibility to participate in this program and a determination that a local rental unit is available for occupation. A
determination of eligibility shall include, but is not limited to:
(a) A determination that the person or family is homeless or
is in transitional housing; (b) a verification of income and that
the person or family can reasonably make the monthly rental
payment; and (c) a determination that the person or family
does not have the financial resources to make the rental security deposit. [1995 c 399 § 157; 1988 c 237 § 2.]
59.24.020
[Title 59 RCW—page 48]
59.24.030
59.24.030 Contracts required—Terms. (1) A threeparty contract shall be required of persons participating in the
rental deposit guarantee program. The parties to the contract
shall be the local government or nonprofit corporation operating a shelter for homeless persons or transitional housing,
the tenant, and the rental property owner. The terms of the
contract shall include, but are not limited to, all of the following:
(a) The owner of the rental property shall agree to allow
the security deposit to be paid by the tenant over a specified
number of months as an addition to the regular rental payment, rather than as a lump-sum payment.
(b) Upon execution of the agreement, the local government or nonprofit corporation shall encumber or reserve
funds in a special fund created under RCW 59.24.020, as a
guarantee of the contract, an amount no less than eighty percent of the outstanding balance of the security deposit owed
by the tenant to the landlord.
(c) The tenant shall agree to a payment schedule of a
specified number of months in which time the total amount of
the required deposit shall be paid to the property owner.
(d) At any time during the operation of the guarantee, the
property owner shall make all claims first against amounts of
the security deposit actually paid by the tenant and secondly
against the guarantee. At no time during or after the tenancy
may the property owner make claims against the guarantee in
excess of that amount agreed to as the guarantee.
(e) If a deduction from the guarantee fund is required, it
may be accomplished only to the extent permitted by the contract and in the manner provided by law, including notice to
the legal agency or organization. The tenant shall have no
direct use of guarantee funds, including funds which may be
referred to as "last month's rent."
(2) The department shall make available to local governments and nonprofit corporations receiving grants under this
chapter the forms deemed necessary for the contracts and the
determination of eligibility. Local governments and nonprofit
corporations may develop and use their own forms as long as
the forms meet the requirements specified in this chapter.
[1988 c 237 § 3.]
59.24.040
59.24.040 Authority of grant recipients. A local government or nonprofit corporation receiving a grant under this
chapter may utilize a portion of the allocation for costs of
administering and operating its rental security deposit guarantee program. The department shall approve the amount so
utilized prior to expenditure, and the amount may not exceed
five percent of the allocation. The staff of the grant recipient
shall be responsible for soliciting housing opportunities for
low-income homeless persons, coordinating with local lowincome rental property owners, making determinations
regarding the eligibility of prospective tenants for the program, and providing information to prospective tenants on
the tenant-property owner relationship, appropriate treatment
of property, and the importance of timely rental payments.
The staff of the grant recipient assigned to administer the program shall be reasonably available to property owners and
tenants to answer questions or complaints about the program.
[1988 c 237 § 4.]
(2004 Ed.)
Federally Assisted Housing
59.24.050
59.24.050 Rules. The department of community, trade,
and economic development may adopt rules to implement
this chapter, including but not limited to: (1) The eligibility
of and the application process for local governments and nonprofit corporations; (2) the criteria by which grants and technical assistance shall be provided to local governments and
nonprofit corporations; and (3) the criteria local governments
and nonprofit corporations shall use in entering into contracts
with tenants and rental property owners. [1995 c 399 § 158;
1988 c 237 § 5.]
59.24.060
59.24.060 Sources of funds. The department of community, trade, and economic development may receive such
gifts, grants, or endowments from public or private sources,
as may be made from time to time, in trust or otherwise, to be
used by the department of community, trade, and economic
development for its programs, including the rental security
deposit guarantee program. Funds from the housing trust
fund, chapter 43.185 RCW, up to one hundred thousand dollars, may be used for the rental security deposit guarantee
program by the department of community, trade, and economic development, local governments, and nonprofit organizations, provided all the requirements of this chapter and
chapter 43.185 RCW are met. [1995 c 399 § 159; 1988 c 237
§ 6.]
59.24.900
59.24.900 Severability—1988 c 237. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1988 c 237 § 8.]
Chapter 59.28
Chapter 59.28 RCW
FEDERALLY ASSISTED HOUSING
Sections
59.28.010
59.28.020
59.28.030
59.28.040
59.28.050
59.28.060
59.28.070
59.28.080
59.28.090
59.28.100
59.28.120
59.28.130
59.28.900
59.28.901
59.28.902
59.28.010
Legislative findings—Purpose.
Definitions.
Contracts—Expiration or termination—Notice—Applicability.
Notice of expiration or prepayment—Owner's duty.
Owner's rights—Public regulatory powers—Applicability.
Notice of expiration or prepayment—Contents—Location—
Requests for information.
Removal of tenants—Notice of expiration or prepayment—
Timing.
Rent increase—Notice of expiration or prepayment—Timing.
Modification of rental agreement—Notice of expiration or
prepayment—Timing.
Violations—Civil actions—Parties.
Department of community, trade, and economic development—Develop and provide information and technical assistance.
Eviction of tenant—Restriction.
Severability—1989 c 188.
Severability—2000 c 255.
Effective date—2000 c 255.
59.28.010 Legislative findings—Purpose. The legislature finds that:
(1) There is a severe shortage of federally assisted housing within the state of Washington. Over one hundred seventy thousand low and moderate-income households are eligible for federally assisted housing but are unable to locate
vacant units.
(2004 Ed.)
59.28.020
(2) Within the next twenty years, more than twenty-six
thousand existing low-income housing units may be lost as a
result of the prepayment of mortgages or loans by the owners,
or as a result of the expiration of rental assistance contracts.
Over three thousand units of federally assisted housing have
already been lost and an additional nine thousand units may
be lost within the next two and one-half years.
(3) Recent reductions in federal housing assistance and
tax benefits related to low-income housing make it uncertain
whether additional units of federally assisted housing will be
built or that those lost will be replaced.
(4) The loss of federally assisted housing will adversely
affect current tenants and lead to their displacement. It will
also drastically reduce the supply of affordable housing in
our communities.
It is the purpose of this chapter to preserve federally
assisted housing in the state of Washington and to minimize
the involuntary displacement of tenants currently residing in
such housing. [1989 c 188 § 1.]
59.28.020 Definitions. The definitions in this section
apply throughout this chapter unless the context clearly
requires otherwise.
(1) "Federally assisted housing" means any multifamily
housing that is insured, financed, assisted, or held by the secretary of housing and urban development or the secretary of
agriculture under:
(a) Section 8 of the United States housing act of 1937, as
amended (42 U.S.C. Sec. 1437f);
(b) Section 101 of the housing and urban development
act of 1965, as amended (12 U.S.C. Sec. 1701s);
(c) The following sections of the national housing act:
(i) Section 202 (12 U.S.C. Sec. 1701q);
(ii) Section 213 (12 U.S.C. Sec. 1715e);
(iii) Section 221(d) (3) and (4) (12 U.S.C. Sec. 17151(d)
(3) and (4));
(iv) Section 223(f) (12 U.S.C. Sec. 1715n(f));
(v) Section 231 (12 U.S.C. Sec. 1715v); or
(vi) Section 236 (12 U.S.C. Sec. 1715z-1); and
(d) The following sections of the housing act of 1949, as
amended:
(i) Section 514 (42 U.S.C. Sec. 1484);
(ii) Section 515 (42 U.S.C. Sec. 1485);
(iii) Section 516 (42 U.S.C. Sec. 1486);
(iv) Section 521(a)(1)(B) (42 U.S.C. Sec. 1490a(a)(1));
or
(v) Section 521(a)(2) (42 U.S.C. Sec. 1490a(a)(2)).
(2) "Rental agreement" means any agreement that establishes or modifies the terms, conditions, rules, regulations, or
any other provision concerning the use and occupancy of a
federally assisted housing unit.
(3) "Owner" means the current or subsequent owner or
owners of federally assisted housing.
(4) "Low-income use restrictions" means any federal,
state, or local statute, rule, regulation, ordinance, or contract
which, as a condition of receipt of any federal, state, or local
financial assistance, establishes maximum limitations on tenant income as a condition of eligibility for occupancy of the
units within a development, imposes any restrictions on the
maximum rents that could be charged for any of the units
within a development, or requires that rent for any of the units
59.28.020
[Title 59 RCW—page 49]
59.28.030
Title 59 RCW: Landlord and Tenant
within a development be reviewed by any governmental body
or agency before the rents are implemented.
(5) "Prepayment" means the payment in full or refinancing of the federally insured or federally held mortgage or loan
prior to its original maturity date, or the voluntary cancellation of mortgage insurance, if that would have the effect of
terminating any low-income use restrictions.
(6) "Public housing agency" means any state or local
agency or nonprofit entity that is authorized to administer
tenant-based rental assistance under federal, state, or local
law. [2000 c 255 § 1; 1989 c 188 § 2.]
59.28.030
59.28.030 Contracts—Expiration or termination—
Notice—Applicability. (1) This chapter shall not apply to
the expiration or termination of a housing assistance contract
between a public housing agency and an owner of existing
housing participating in either the section 8 certificate or
voucher program (42 U.S.C. Sec. 1437f).
(2) An owner of federally assisted housing shall not be
required to give notice of a prepayment under this chapter, if
the owner has: (a) Entered into an agreement with a federal,
state, or local agency continuing existing, or imposing new,
low-income use restrictions for at least twenty years that
ensure that the tenants residing in the development at the time
of prepayment are not involuntarily displaced except for
good cause and that the housing will continue to serve very
low and low-income families and persons in need of affordable housing; and (b) served notice of the agreement on the
clerk of the city, or county if in an unincorporated area, in
which the property is located, on any public housing agency
that would be responsible for administering tenant-based
rental assistance to persons who would otherwise be displaced from this housing, and on the department of community, trade, and economic development by regular and certified mail and posted a copy of the agreement in a conspicuous place at the development where it is likely to be seen by
the tenants. The posted agreement shall be maintained intact
and in legible form for the life of the agreement.
(3) An owner of federally assisted housing is not
required to give notice that a rental assistance contract is
expiring if: (a) The owner has entered into an agreement with
the United States department of housing and urban development or other federal, state, or local agency to renew the
rental assistance contract for a minimum of five years subject
to the availability of adequate appropriations; (b) the agreement itself does not expire in less than twelve months; and (c)
the owner has served written notice of the agreement on the
clerk of the city, or county if in an unincorporated area, in
which the property is located, on any public housing agency
that would be responsible for administering tenant-based
rental assistance to persons who would otherwise be displaced from this housing, and on the department of community, trade, and economic development, by regular and certified mail and posted these notices in a conspicuous place at
the development where they are likely to be seen by the tenants. The posted notices shall be maintained intact and in legible form for the life of the agreement to renew the rental
assistance contract. [2000 c 255 § 2; 1989 c 188 § 3.]
[Title 59 RCW—page 50]
59.28.040
59.28.040 Notice of expiration or prepayment—
Owner's duty. Except as provided in RCW 59.28.030, all
owners of federally assisted housing shall, at least twelve
months before the expiration of the rental assistance contract
or prepayment of a mortgage or loan, serve a written notice of
the anticipated expiration or prepayment date on each tenant
household residing in the housing, on the clerk of the city, or
clerk of the county legislative authority if in an unincorporated area, in which the property is located, on any public
housing agency that would be responsible for administering
tenant-based rental assistance to persons who would otherwise be displaced from this housing, and on the department
of community, trade, and economic development, by regular
and certified mail. All owners of federally assisted housing
shall also serve written notice of the anticipated expiration or
prepayment date on each tenant household that moves into
the housing after the initial notice has been given, but before
the expiration of the rental assistance contract or prepayment
of the mortgage or loan. This notice shall be given before a
new tenant is asked to execute a rental agreement or required
to pay any deposits. [2002 c 30 § 3; 2000 c 255 § 3; 1995 c
399 § 160; 1989 c 188 § 4.]
59.28.050
59.28.050 Owner's rights—Public regulatory powers—Applicability. This chapter shall not in any way prohibit an owner of federally assisted housing from terminating
a rental assistance contract or prepaying a mortgage or loan.
The requirement in this chapter for notice shall not be construed as conferring any new or additional regulatory power
upon the city or county clerk or upon the department of community, trade, and economic development. [1995 c 399 §
161; 1989 c 188 § 5.]
59.28.060
59.28.060 Notice of expiration or prepayment—Contents—Location—Requests for information. (1) The
notice to tenants required by RCW 59.28.040 shall state:
(a) Whether the owner (i) intends to prepay the mortgage
or loan or allow the rental assistance contract to expire in
order to operate the housing without any low-income use
restrictions, (ii) plans on renewing the rental assistance contract subject to the availability of adequate appropriations, or
(iii) is seeking additional financial incentives or higher rents
as a condition of remaining in the federal program; (b) the
reason the owner plans on taking this action; (c) the owner's
plans for the project, including any timetables or deadlines
for actions to be taken by the owner and any specific federal,
state, or local agency approvals that the owner is required to
obtain; (d) the anticipated date of the prepayment of the mortgage or loan or expiration of the rental assistance contract; (e)
the effect, if any, that prepayment of the mortgage or loan or
expiration of the rental assistance contract will have upon the
tenants' rent and other terms of their rental agreement; and (f)
that additional information will be served on the city or
county, on the local public housing agency, and on the
department of community, trade, and economic development
and will be posted at the development. The owner shall also
include with the notice written information, prepared by the
department of community, trade, and economic development
under RCW 59.28.120(1), concerning the legal rights,
responsibilities, and options of owners and tenants when an
(2004 Ed.)
Federally Assisted Housing
owner intends to prepay a mortgage or loan or terminate a
rental assistance contract.
(2) The notice to the city or county clerk and to the
department of community, trade, and economic development
required by RCW 59.28.040 shall state: (a) The name, location, and project number of the federally assisted housing and
the type of assistance received from the federal government;
(b) the number and size of units; (c) the age, race, family size,
and estimated incomes of the tenants who will be affected by
the prepayment of the loan or mortgage or expiration of the
federal assistance contract; (d) the current rents and projected
rent increases for each affected tenant after the prepayment of
the mortgage or loan or expiration of the rental assistance
contract without disclosing the identities of the affected tenants; (e) the availability and type, if any, of rental assistance
after the prepayment of the mortgage or loan or expiration of
the rental assistance contract; and (f) the age, race, family
size, and estimated incomes of any applicants on the project's
waiting list without disclosing the identities of the applicants.
The owner shall attach to this notice a copy of the notice the
owner sends to the tenants under this chapter.
(3) All owners of federally assisted housing shall immediately post a copy of any notices they send the city or county
clerk, any public housing agency, and the department of community, trade, and economic development, under RCW
59.28.040, in a conspicuous place at the development where
they are likely to be seen by current and prospective tenants.
The notices shall be maintained intact and in legible form for
twelve months from the date they are posted.
All owners of federally assisted housing shall, upon
request of any state or local agency, provide the agency with
a copy of any rent comparability study, market analysis, or
projected budget that they submit to the United States department of housing and urban development or other federal
agency in conjunction with the prepayment of their mortgage
or loan or in anticipation of the expiration of their rental
assistance contract, together with any physical inspection
reports or capital needs assessments completed by the owner
or federal agency within the last three years. [2000 c 255 § 4;
1995 c 399 § 162; 1989 c 188 § 6.]
59.28.070
59.28.070 Removal of tenants—Notice of expiration
or prepayment—Timing. From the date of service of the
notice under RCW 59.28.040 until either twelve months have
elapsed or expiration or prepayment of the rental assistance
contract or mortgage or loan, whichever is later, no owner of
federally assisted housing may evict a tenant or demand possession of any federally assisted housing unit, except as
authorized by the federal assistance program applicable to the
project, prior to expiration or prepayment of the rental assistance contract or mortgage or loan. [1989 c 188 § 7.]
59.28.130
program applicable to the project prior to expiration or prepayment of the rental assistance contract or mortgage or loan.
[2000 c 255 § 5; 1989 c 188 § 8.]
59.28.090
59.28.090 Modification of rental agreement—Notice
of expiration or prepayment—Timing. From the date of
service of the notice under RCW 59.28.040 until either
twelve months have elapsed or expiration or prepayment of
the rental assistance contract, mortgage, or loan, whichever is
later, no owner of federally assisted housing may change the
terms of the rental agreement, except as permitted under the
existing rental agreement, prior to expiration or prepayment
of the rental assistance contract or mortgage or loan. [1989 c
188 § 9.]
59.28.100
59.28.100 Violations—Civil actions—Parties. Any
party who is entitled to receive notice under this chapter may
bring a civil action to enjoin or recover actual damages for
any violation of this chapter, together with the costs of the
suit including reasonable attorneys' fees. Any tenant who is
entitled to receive notice under this chapter shall also recover
statutory damages of fifty dollars. [2000 c 255 § 6; 1989 c
188 § 10.]
59.28.120
59.28.120 Department of community, trade, and economic development—Develop and provide information
and technical assistance. The department of community,
trade, and economic development shall within ninety days
after March 31, 2000, consult with all interested stakeholders
and develop and provide to owners and tenants of federally
assisted housing, state and local agencies, and other interested persons all of the following:
(1) Written information concerning the legal rights,
responsibilities, and options of owners and tenants when an
owner intends to prepay a mortgage or loan or terminate a
rental assistance contract. This information shall include the
name and telephone number of any qualified legal aid program that provides civil legal services to indigent persons and
of any other state, regional, or local organization that can be
contacted to request additional information about an owner's
responsibilities and the rights and options of an affected tenant;
(2) Written information sufficient to enable an owner of
federally assisted housing to comply with the notification
requirements of this chapter, including the name and address
of any public housing agency that would be responsible for
administering tenant-based rental assistance to persons who
would otherwise be displaced from federally assisted housing; and
(3) Any other information or technical assistance the
department determines will further the purposes of this chapter. [2000 c 255 § 7.]
59.28.080
59.28.080 Rent increase—Notice of expiration or
prepayment—Timing. From the date of service of the
notice under RCW 59.28.040 until either twelve months have
elapsed or expiration or prepayment of the rental assistance
contract, mortgage, or loan, whichever is later, no owner of
federally assisted housing may increase the rent of a federally
assisted housing unit, or the share of the rent paid by the tenant, above the amount authorized by the federal assistance
(2004 Ed.)
59.28.130
59.28.130 Eviction of tenant—Restriction. An owner
of federally assisted housing who prepays the mortgage or
loan or whose rental assistance contract expires and who continues to operate the property as residential housing within
the scope of this chapter shall not evict a tenant residing in the
dwelling unit when the mortgage or loan is prepaid or the
rental assistance contract expires, except as authorized by the
[Title 59 RCW—page 51]
59.28.900
Title 59 RCW: Landlord and Tenant
federal assistance program applicable to the project prior to
prepayment of the mortgage or loan, or expiration of the
rental assistance contract. [2000 c 255 § 8.]
59.28.900 Severability—1989 c 188. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1989 c 188 § 12.]
59.28.900
59.28.901 Severability—2000 c 255. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[2000 c 255 § 10.]
59.28.901
59.28.902 Effective date—2000 c 255. This act is necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its
existing public institutions, and takes effect immediately
[March 31, 2000]. [2000 c 255 § 11.]
59.28.902
[Title 59 RCW—page 52]
(2004 Ed.)
Title 60
Title 60
LIENS
Chapters
60.04
Mechanics' and materialmen's liens.
60.08
Chattel liens.
60.10
Personal property liens—Summary foreclosure.
60.11
Crop liens.
60.13
Processor and preparer liens for agricultural
products.
60.16
Labor liens on orchards and orchard lands.
60.24
Lien for labor and services on timber and lumber.
60.28
Lien for labor, materials, taxes on public
works.
60.32
Labor liens on franchises, earnings, and property of certain companies.
60.34
Lien of restaurant, hotel, tavern, etc., employees.
60.36
Lien on vessels and equipment.
60.40
Lien for attorney's fees.
60.42
Commercial real estate broker lien act.
60.44
Lien of doctors, nurses, hospitals, ambulance
services.
60.45
Lien of department of social and health services for medical care furnished injured
recipient.
60.52
Lien for services of sires.
60.56
Agister and trainer liens.
60.60
Lien for transportation, storage, advancements, etc.
60.64
Lien of hotels, lodging and boarding houses—
1915 act.
60.66
Lien of hotels, lodging and boarding houses—
1890 act.
60.68
Uniform federal lien registration act.
60.70
Limitations on nonconsensual common law
liens.
60.72
Landlord's lien for rent.
60.76
Lien of employees for contributions to benefit
plans.
60.80
Lien for unrecorded utility charges.
60.84
Lien on dies, molds, forms, and patterns.
Assignment of accounts receivable, priority as to liens: Article 62A.9A
RCW.
Conditional sales contracts, priorities as to liens: Article 62A.9A RCW.
Employee benefit plans: Chapter 49.64 RCW.
Frauds and swindles—Encumbered, leased or rented personal property:
RCW 9.45.060.
Labor claims paramount to claims by state agencies: RCW 49.56.040.
Liens
agriculture
dairy products commission, lien for assessments: RCW 15.44.090.
disinfecting and destroying products, lien for, foreclosure: RCW
15.08.090 through 15.08.160.
cities and towns
cities of first class, cost of filling cesspools, etc., lien for: RCW
35.22.320.
elevated roadways, tunnels, etc., assessment liens: RCW 35.85.030.
(2004 Ed.)
local improvement liens, validity, enforcement, priority, etc.: Chapter
35.50 RCW, RCW 35.49.130 through 35.49.160, 35.55.090,
35.56.100.
sanitary fills, lien for expense of: RCW 35.73.050.
sewerage system liens: RCW 35.67.200 through 35.67.290.
sidewalk lien: RCW 35.68.070, 35.69.030, 35.70.090.
solid waste or recyclable materials collection, lien for: RCW 35.21.130
through 35.21.150, 35.22.320.
utility services, lien for: RCW 35.21.290, 35.21.300.
counties, tax liens, priority, foreclosure, etc.: RCW 35.49.130 through
35.49.160.
dead body, holding for lien, penalty: RCW 68.50.120.
diking, drainage, and sewerage improvement districts, assessment lien:
RCW 85.08.430, 85.08.490.
diking and drainage districts, intercounty, assessment lien: RCW
85.24.150.
enforcement of
holders right to redeem from execution sale: RCW 6.23.010, 6.23.080.
homestead, subject to liens: RCW 6.13.080.
state a party: RCW 4.92.010.
filing and recording of liens
duties of county auditor: Chapter 65.04 RCW.
mortgage liens: Chapter 65.08 RCW.
flood control districts, assessment lien: RCW 86.09.490, 86.09.493,
86.09.505.
forest protection: Chapter 76.04 RCW.
irrigation district bonds, lien to pay indebtedness: RCW 87.03.215,
87.28.030.
judgments
cessation of: RCW 4.64.100.
lien on real estate to satisfy: RCW 4.56.190 through 4.56.210.
real property subject to execution held jointly, judgment is a lien: RCW
6.17.170.
local improvement special assessment liens, action to foreclose: RCW
4.16.030.
metropolitan park districts, assessment liens: RCW 35.61.240.
negotiable instruments, when lienor is holder for value: Articles 62A.1,
62A.3, 62A.4 RCW.
partition suits, impleading, adjusting, of lien creditors: RCW 7.52.030,
7.52.150.
probate, limitation of liability of real estate for debts of decedent: RCW
11.04.270.
reclamation districts, assessment liens: Chapter 89.30 RCW, RCW
89.30.718.
removal or destruction of property subject to lien, penalty: RCW
9.45.060, 61.12.030.
river and harbor improvements, assessment lien: RCW 88.32.100.
road improvement districts, assessment lien: RCW 36.88.120.
seller's lien: RCW 62A.2-609, 62A.2-702(1), 62A.7-502.
taxation
motor vehicle fuel tax lien: RCW 82.36.110.
property tax liens: Chapter 84.60 RCW.
real property taxes, payment by lienholder permitted: RCW 84.56.330.
tax liens, enforcement: RCW 82.32.210, 82.32.220, 82.32.240.
toll bridges, lien of bonds on revenue: RCW 47.56.240.
unemployment compensation, lien of contributions: RCW 50.24.050,
50.24.060.
water rights
artesian wells, lien for capping: RCW 90.36.040.
partnership ditches, lien for labor: RCW 90.03.450.
workers' compensation, lien for payments due: RCW 51.16.160,
51.16.170.
Real estate mortgages: Chapter 61.12 RCW.
Registration of land titles (Torrens Act): Chapter 65.12 RCW.
Retail installment sales of goods and services: Chapter 63.14 RCW.
[Title 60 RCW—page 1]
Chapter 60.04
Title 60 RCW: Liens
Secured transactions: Article 62A.9A RCW.
Wages and labor claims, preference of: Chapter 49.56 RCW.
Chapter 60.04 RCW
MECHANICS' AND MATERIALMEN'S LIENS
Chapter 60.04
Sections
60.04.011
60.04.021
60.04.031
60.04.035
60.04.041
60.04.051
60.04.061
60.04.071
60.04.081
60.04.091
60.04.101
60.04.111
60.04.121
60.04.131
60.04.141
60.04.151
60.04.161
60.04.171
60.04.181
60.04.190
60.04.191
60.04.201
60.04.211
60.04.221
60.04.226
60.04.230
60.04.250
60.04.255
60.04.261
60.04.900
60.04.901
60.04.902
60.04.903
60.04.904
Definitions.
Lien authorized.
Notices—Exceptions.
Acts of coercion—Application of chapter 19.86 RCW.
Contractor registration.
Property subject to lien.
Priority of lien.
Release of lien rights.
Frivolous claim—Procedure.
Recording—Time—Contents of lien.
Separate residential units—Time for filing.
Recording—Fees.
Lien—Assignment.
Claims—Designation of amount due.
Lien—Duration—Procedural limitations.
Rights of owner—Recovery options.
Bond in lieu of claim.
Foreclosure—Parties.
Rank of lien—Application of proceeds—Attorneys' fees.
Destruction or concealment of property—Removal from premises—Penalty.
Effect of note—Personal action preserved.
Material exempt from process—Exception.
Lien—Effect on community interest.
Notice to lender—Withholding of funds.
Financial encumbrances—Priorities.
Construction projects—Notice to be posted by prime contractor—Penalty.
Informational materials on construction lien laws—Master
documents.
Informational materials on construction lien laws—Copies—
Liability.
Availability of information.
Liberal construction—1991 c 281.
Captions not law—1991 c 281.
Effective date, application—1991 c 281.
Effective date—1992 c 126.
Application of chapter 281, Laws of 1991, to actions pending
as of June 1, 1992—1993 c 357.
Crop lien for furnishing work or labor: RCW 60.11.040.
60.04.011 Definitions. Unless the context requires otherwise, the definitions in this section apply throughout this
chapter.
(1) "Construction agent" means any registered or
licensed contractor, registered or licensed subcontractor,
architect, engineer, or other person having charge of any
improvement to real property, who shall be deemed the agent
of the owner for the limited purpose of establishing the lien
created by this chapter.
(2) "Contract price" means the amount agreed upon by
the contracting parties, or if no amount is agreed upon, then
the customary and reasonable charge therefor.
(3) "Draws" means periodic disbursements of interim or
construction financing by a lender.
(4) "Furnishing labor, professional services, materials, or
equipment" means the performance of any labor or professional services, the contribution owed to any employee benefit plan on account of any labor, the provision of any supplies
or materials, and the renting, leasing, or otherwise supplying
of equipment for the improvement of real property.
(5) "Improvement" means: (a) Constructing, altering,
repairing, remodeling, demolishing, clearing, grading, or filling in, of, to, or upon any real property or street or road in
60.04.011
[Title 60 RCW—page 2]
front of or adjoining the same; (b) planting of trees, vines,
shrubs, plants, hedges, or lawns, or providing other landscaping materials on any real property; and (c) providing professional services upon real property or in preparation for or in
conjunction with the intended activities in (a) or (b) of this
subsection.
(6) "Interim or construction financing" means that portion of money secured by a mortgage, deed of trust, or other
encumbrance to finance improvement of, or to real property,
but does not include:
(a) Funds to acquire real property;
(b) Funds to pay interest, insurance premiums, lease
deposits, taxes, assessments, or prior encumbrances;
(c) Funds to pay loan, commitment, title, legal, closing,
recording, or appraisal fees;
(d) Funds to pay other customary fees, which pursuant to
agreement with the owner or borrower are to be paid by the
lender from time to time;
(e) Funds to acquire personal property for which the
potential lien claimant may not claim a lien pursuant to this
chapter.
(7) "Labor" means exertion of the powers of body or
mind performed at the site for compensation. "Labor"
includes amounts due and owed to any employee benefit plan
on account of such labor performed.
(8) "Mortgagee" means a person who has a valid mortgage of record or deed of trust of record securing a loan.
(9) "Owner-occupied" means a single-family residence
occupied by the owner as his or her principal residence.
(10) "Payment bond" means a surety bond issued by a
surety licensed to issue surety bonds in the state of Washington that confers upon potential claimants the rights of third
party beneficiaries.
(11) "Potential lien claimant" means any person or entity
entitled to assert lien rights under this chapter who has otherwise complied with the provisions of this chapter and is registered or licensed if required to be licensed or registered by
the provisions of the laws of the state of Washington.
(12) "Prime contractor" includes all contractors, general
contractors, and specialty contractors, as defined by chapter
18.27 or 19.28 RCW, or who are otherwise required to be
registered or licensed by law, who contract directly with a
property owner or their common law agent to assume primary responsibility for the creation of an improvement to real
property, and includes property owners or their common law
agents who are contractors, general contractors, or specialty
contractors as defined in chapter 18.27 or 19.28 RCW, or
who are otherwise required to be registered or licensed by
law, who offer to sell their property without occupying or
using the structures, projects, developments, or improvements for more than one year.
(13) "Professional services" means surveying, establishing or marking the boundaries of, preparing maps, plans, or
specifications for, or inspecting, testing, or otherwise performing any other architectural or engineering services for
the improvement of real property.
(14) "Real property lender" means a bank, savings bank,
savings and loan association, credit union, mortgage company, or other corporation, association, partnership, trust, or
individual that makes loans secured by real property located
in the state of Washington.
(2004 Ed.)
Mechanics’ and Materialmen’s Liens
(15) "Site" means the real property which is or is to be
improved.
(16) "Subcontractor" means a general contractor or specialty contractor as defined by chapter 18.27 or 19.28 RCW,
or who is otherwise required to be registered or licensed by
law, who contracts for the improvement of real property with
someone other than the owner of the property or their common law agent. [1992 c 126 § 1; 1991 c 281 § 1.]
60.04.021
60.04.021 Lien authorized. Except as provided in
RCW 60.04.031, any person furnishing labor, professional
services, materials, or equipment for the improvement of real
property shall have a lien upon the improvement for the contract price of labor, professional services, materials, or equipment furnished at the instance of the owner, or the agent or
construction agent of the owner. [1991 c 281 § 2.]
60.04.031
60.04.031 Notices—Exceptions. (1) Except as otherwise provided in this section, every person furnishing professional services, materials, or equipment for the improvement
of real property shall give the owner or reputed owner notice
in writing of the right to claim a lien. If the prime contractor
is in compliance with the requirements of RCW 19.27.095,
60.04.230, and 60.04.261, this notice shall also be given to
the prime contractor as described in this subsection unless the
potential lien claimant has contracted directly with the prime
contractor. The notice may be given at any time but only protects the right to claim a lien for professional services, materials, or equipment supplied after the date which is sixty days
before:
(a) Mailing the notice by certified or registered mail to
the owner or reputed owner; or
(b) Delivering or serving the notice personally upon the
owner or reputed owner and obtaining evidence of delivery in
the form of a receipt or other acknowledgement signed by the
owner or reputed owner or an affidavit of service.
In the case of new construction of a single-family residence, the notice of a right to claim a lien may be given at any
time but only protects the right to claim a lien for professional
services, materials, or equipment supplied after a date which
is ten days before the notice is given as described in this subsection.
(2) Notices of a right to claim a lien shall not be required
of:
(a) Persons who contract directly with the owner or the
owner's common law agent;
(b) Laborers whose claim of lien is based solely on performing labor; or
(c) Subcontractors who contract for the improvement of
real property directly with the prime contractor, except as
provided in subsection (3)(b) of this section.
(3) Persons who furnish professional services, materials,
or equipment in connection with the repair, alteration, or
remodel of an existing owner-occupied single-family residence or appurtenant garage:
(a) Who contract directly with the owner-occupier or
their common law agent shall not be required to send a written notice of the right to claim a lien and shall have a lien for
the full amount due under their contract, as provided in RCW
60.04.021; or
(2004 Ed.)
60.04.031
(b) Who do not contract directly with the owner-occupier
or their common law agent shall give notice of the right to
claim a lien to the owner-occupier. Liens of persons furnishing professional services, materials, or equipment who do not
contract directly with the owner-occupier or their common
law agent may only be satisfied from amounts not yet paid to
the prime contractor by the owner at the time the notice
described in this section is received, regardless of whether
amounts not yet paid to the prime contractor are due. For the
purposes of this subsection "received" means actual receipt
of notice by personal service, or registered or certified mail,
or three days after mailing by registered or certified mail,
excluding Saturdays, Sundays, or legal holidays.
(4) The notice of right to claim a lien described in subsection (1) of this section, shall include but not be limited to
the following information and shall substantially be in the
following form, using lower-case and upper-case ten-point
type where appropriate.
NOTICE TO OWNER
IMPORTANT: READ BOTH SIDES OF THIS NOTICE
CAREFULLY.
PROTECT YOURSELF FROM PAYING TWICE
To: . . . . . . . . . . . . . . . . . . . . . .Date: . . . . . . . . . . . . . . . . . .
Re:
(description of property: Street address or general
location.)
From: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
AT THE REQUEST OF: (Name of person ordering the
professional services, materials, or equipment)
THIS IS NOT A LIEN: This notice is sent to you to tell you
who is providing professional services, materials, or equipment for the improvement of your property and to advise you
of the rights of these persons and your responsibilities. Also
take note that laborers on your project may claim a lien without sending you a notice.
OWNER/OCCUPIER OF EXISTING
RESIDENTIAL PROPERTY
Under Washington law, those who furnish labor, professional
services, materials, or equipment for the repair, remodel, or
alteration of your owner-occupied principal residence and
who are not paid, have a right to enforce their claim for payment against your property. This claim is known as a construction lien.
The law limits the amount that a lien claimant can claim
against your property. Claims may only be made against that
portion of the contract price you have not yet paid to your
prime contractor as of the time this notice was given to you or
three days after this notice was mailed to you. Review the
back of this notice for more information and ways to avoid
lien claims.
COMMERCIAL AND/OR NEW
RESIDENTIAL PROPERTY
We have or will be providing professional services, materials, or equipment for the improvement of your commercial or
new residential project. In the event you or your contractor
[Title 60 RCW—page 3]
60.04.035
Title 60 RCW: Liens
Brief description of professional services, materials, or
equipment provided or to be provided: . . . . . . . . . . . . . . . .
contain the professional service provider's name, address,
telephone number, legal description of the property, the
owner or reputed owner's name, and the general nature of the
professional services provided. If such notice is not recorded,
the lien claimed shall be subordinate to the interest of any
subsequent mortgagee and invalid as to the interest of any
subsequent purchaser if the mortgagee or purchaser acts in
good faith and for a valuable consideration acquires an interest in the property prior to the commencement of an improvement as defined in RCW 60.04.011(5) (a) or (b) without
notice of the professional services being provided. The notice
described in this subsection shall be substantially in the following form:
IMPORTANT INFORMATION
ON REVERSE SIDE
NOTICE OF FURNISHING
PROFESSIONAL SERVICES
IMPORTANT INFORMATION
FOR YOUR PROTECTION
That on the (day) day of (month and year) ,
(name of provider) began providing professional services
upon or for the improvement of real property legally
described as follows:
fail to pay us, we may file a lien against your property. A lien
may be claimed for all professional services, materials, or
equipment furnished after a date that is sixty days before this
notice was given to you or mailed to you, unless the improvement to your property is the construction of a new singlefamily residence, then ten days before this notice was given
to you or mailed to you.
Sender: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Address: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Telephone: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
This notice is sent to inform you that we have or will provide
professional services, materials, or equipment for the
improvement of your property. We expect to be paid by the
person who ordered our services, but if we are not paid, we
have the right to enforce our claim by filing a construction
lien against your property.
LEARN more about the lien laws and the meaning of this
notice by discussing them with your contractor, suppliers,
Department of Labor and Industries, the firm sending you
this notice, your lender, or your attorney.
[Legal Description
is mandatory]
is
The general nature of the professional services provided
.............................................
The owner or reputed owner of the real property is . . . . . . .
................................................
.....................
(Signature)
COMMON METHODS TO AVOID CONSTRUCTION
LIENS: There are several methods available to protect your
property from construction liens. The following are two of
the more commonly used methods.
.....................
(Name of Claimant)
.....................
(Street Address)
DUAL PAYCHECKS (Joint Checks): When paying your contractor for services or materials, you
may make checks payable jointly to the contractor
and the firms furnishing you this notice.
LIEN RELEASES: You may require your contractor to provide lien releases signed by all the suppliers and subcontractors from whom you have
received this notice. If they cannot obtain lien
releases because you have not paid them, you may
use the dual payee check method to protect yourself.
YOU SHOULD TAKE APPROPRIATE STEPS TO PROTECT YOUR PROPERTY FROM LIENS.
YOUR PRIME CONTRACTOR AND YOUR CONSTRUCTION LENDER ARE REQUIRED BY LAW TO GIVE
YOU WRITTEN INFORMATION ABOUT LIEN
CLAIMS. IF YOU HAVE NOT RECEIVED IT, ASK
THEM FOR IT.
*************
(5) Every potential lien claimant providing professional
services where no improvement as defined in RCW
60.04.011(5) (a) or (b) has been commenced, and the professional services provided are not visible from an inspection of
the real property may record in the real property records of
the county where the property is located a notice which shall
[Title 60 RCW—page 4]
.....................
(City, State, Zip Code)
.....................
(Phone Number)
(6) A lien authorized by this chapter shall not be
enforced unless the lien claimant has complied with the
applicable provisions of this section. [1992 c 126 § 2; 1991 c
281 § 3.]
60.04.035
60.04.035 Acts of coercion—Application of chapter
19.86 RCW. The legislature finds that acts of coercion or
attempted coercion, including threats to withhold future contracts, made by a contractor or developer to discourage a contractor, subcontractor, or material or equipment supplier from
giving an owner the notice of right to claim a lien required by
RCW 60.04.031, or from filing a claim of lien under this
chapter are matters vitally affecting the public interest for the
purpose of applying the consumer protection act, chapter
19.86 RCW. These acts of coercion are not reasonable in
relation to the development and preservation of business.
These acts of coercion shall constitute an unfair or deceptive
act or practice in trade or commerce for the purpose of applying the consumer protection act, chapter 19.86 RCW. [1992
c 126 § 3.]
(2004 Ed.)
Mechanics’ and Materialmen’s Liens
60.04.041
60.04.041 Contractor registration. A contractor or
subcontractor required to be registered under chapter 18.27
RCW or licensed under chapter 19.28 RCW, or otherwise
required to be registered or licensed by law, shall be deemed
the construction agent of the owner for the purposes of establishing the lien created by this chapter only if so registered or
licensed. Persons dealing with contractors or subcontractors
may rely, for the purposes of this section, upon a certificate of
registration issued pursuant to chapter 18.27 RCW or license
issued pursuant to chapter 19.28 RCW, or other certificate or
license issued pursuant to law, covering the period when the
labor, professional services, material, or equipment shall be
furnished, and the lien rights shall not be lost by suspension
or revocation of registration or license without their knowledge. No lien rights described in this chapter shall be lost or
denied by virtue of the absence, suspension, or revocation of
such registration or license with respect to any contractor or
subcontractor not in immediate contractual privity with the
lien claimant. [1992 c 126 § 4; 1991 c 281 § 4.]
60.04.051
60.04.051 Property subject to lien. The lot, tract, or
parcel of land which is improved is subject to a lien to the
extent of the interest of the owner at whose instance, directly
or through a common law or construction agent the labor,
professional services, equipment, or materials were furnished, as the court deems appropriate for satisfaction of the
lien. If, for any reason, the title or interest in the land upon
which the improvement is situated cannot be subjected to the
lien, the court in order to satisfy the lien may order the sale
and removal of the improvement from the land which is subject to the lien. [1992 c 126 § 5; 1991 c 281 § 5.]
60.04.091
no earlier than six nor later than fifteen days following the
date of service of the application and order on the lien claimant, and show cause, if any he or she has, why the relief
requested should not be granted. The motion shall state the
grounds upon which relief is asked, and shall be supported by
the affidavit of the applicant or his or her attorney setting
forth a concise statement of the facts upon which the motion
is based.
(2) The order shall clearly state that if the lien claimant
fails to appear at the time and place noted the lien shall be
released, with prejudice, and that the lien claimant shall be
ordered to pay the costs requested by the applicant including
reasonable attorneys' fees.
(3) If no action to foreclose the lien claim has been filed,
the clerk of the court shall assign a cause number to the application and obtain from the applicant a filing fee of thirty-five
dollars. If an action has been filed to foreclose the lien claim,
the application shall be made a part of that action.
(4) If, following a hearing on the matter, the court determines that the lien is frivolous and made without reasonable
cause, or clearly excessive, the court shall issue an order
releasing the lien if frivolous and made without reasonable
cause, or reducing the lien if clearly excessive, and awarding
costs and reasonable attorneys' fees to the applicant to be paid
by the lien claimant. If the court determines that the lien is not
frivolous and was made with reasonable cause, and is not
clearly excessive, the court shall issue an order so stating and
awarding costs and reasonable attorneys' fees to the lien
claimant to be paid by the applicant.
(5) Proceedings under this section shall not affect other
rights and remedies available to the parties under this chapter
or otherwise. [1992 c 126 § 6; 1991 c 281 § 8.]
60.04.061
60.04.061 Priority of lien. The claim of lien created by
this chapter upon any lot or parcel of land shall be prior to any
lien, mortgage, deed of trust, or other encumbrance which
attached to the land after or was unrecorded at the time of
commencement of labor or professional services or first
delivery of materials or equipment by the lien claimant.
[1991 c 281 § 6.]
60.04.071
60.04.071 Release of lien rights. Upon payment and
acceptance of the amount due to the lien claimant and upon
demand of the owner or the person making payment, the lien
claimant shall immediately prepare and execute a release of
all lien rights for which payment has been made, and deliver
the release to the person making payment. In any suit to compel deliverance of the release thereafter in which the court
determines the delay was unjustified, the court shall, in addition to ordering the deliverance of the release, award the costs
of the action including reasonable attorneys' fees and any
damages. [1991 c 281 § 7.]
60.04.081
60.04.081 Frivolous claim—Procedure. (1) Any
owner of real property subject to a recorded claim of lien
under this chapter, or contractor, subcontractor, lender, or
lien claimant who believes the claim of lien to be frivolous
and made without reasonable cause, or clearly excessive may
apply by motion to the superior court for the county where
the property, or some part thereof is located, for an order
directing the lien claimant to appear before the court at a time
(2004 Ed.)
60.04.091 Recording—Time—Contents of lien.
Every person claiming a lien under RCW 60.04.021 shall file
for recording, in the county where the subject property is
located, a notice of claim of lien not later than ninety days
after the person has ceased to furnish labor, professional services, materials, or equipment or the last date on which
employee benefit contributions were due. The notice of
claim of lien:
(1) Shall state in substance and effect:
(a) The name, phone number, and address of the claimant;
(b) The first and last date on which the labor, professional services, materials, or equipment was furnished or
employee benefit contributions were due;
(c) The name of the person indebted to the claimant;
(d) The street address, legal description, or other description reasonably calculated to identify, for a person familiar
with the area, the location of the real property to be charged
with the lien;
(e) The name of the owner or reputed owner of the property, if known, and, if not known, that fact shall be stated; and
(f) The principal amount for which the lien is claimed.
(2) Shall be signed by the claimant or some person
authorized to act on his or her behalf who shall affirmatively
state they have read the notice of claim of lien and believe the
notice of claim of lien to be true and correct under penalty of
perjury, and shall be acknowledged pursuant to chapter 64.08
RCW. If the lien has been assigned, the name of the assignee
60.04.091
[Title 60 RCW—page 5]
60.04.101
Title 60 RCW: Liens
shall be stated. Where an action to foreclose the lien has been
commenced such notice of claim of lien may be amended as
pleadings may be by order of the court insofar as the interests
of third parties are not adversely affected by such amendment. A claim of lien substantially in the following form
shall be sufficient:
CLAIM OF LIEN
. . . . . ., claimant, vs . . . . . ., name of person
indebted to claimant:
Notice is hereby given that the person named below
claims a lien pursuant to *chapter 64.04 RCW. In
support of this lien the following information is submitted:
1. NAME OF LIEN CLAIMANT: . . . . . . . .
TELEPHONE NUMBER: . . . . . . . . . . . . .
ADDRESS: . . . . . . . . . . . . . . . . . . . . . . . . .
2. DATE ON WHICH THE CLAIMANT
BEGAN TO PERFORM LABOR, PROVIDE PROFESSIONAL SERVICES, SUPPLY MATERIAL
OR EQUIPMENT OR THE DATE ON WHICH
EMPLOYEE B ENEFIT CONTRIBUTIONS
BECAME DUE: . . . . . . . . . . . . . . . . . . . . . . . . . .
3. NAME OF PERSON INDEBTED TO THE
CLAIMANT:
.........................................
4. DESCRIPTION OF THE PROPERTY
AGAINST WHICH A LIEN IS CLAIMED (Street
address, legal description or other information that
will reasonably describe the property): . . . . . . . . .
.........................................
.........................................
.........................................
5. NAME OF THE OWNER OR REPUTED
OWNER (If not known state "unknown"): . . . . . .
6. THE LAST DATE ON WHICH LABOR
WAS PERFORMED; PROFESSIONAL SERVICES WERE FURNISHED; CONTRIBUTIONS
TO AN EMPLOYEE BENEFIT PLAN WERE
DUE; OR MATERIAL, OR EQUIPMENT WAS
FURNISHED: . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.........................................
7. PRINCIPAL AMOUNT FOR WHICH THE
LIEN IS CLAIMED IS: . . . . . . . . . . . . . . . . . . . .
8. IF THE CLAIMANT IS THE ASSIGNEE
OF THIS CLAIM SO STATE HERE: . . . . . . . . .
.........................................
. . . . . . . . . . . . . . . . . . . , Claimant
...........................
...........................
(Phone number, address, city, and
state of claimant)
STATE OF WASHINGTON, COUNTY OF
. . . . . . . ., ss.
[Title 60 RCW—page 6]
. . . . . . . ., being sworn, says: I am the claimant (or attorney
of the claimant, or administrator, representative, or agent of
the trustees of an employee benefit plan) above named; I have
read or heard the foregoing claim, read and know the contents
thereof, and believe the same to be true and correct and that
the claim of lien is not frivolous and is made with reasonable
cause, and is not clearly excessive under penalty of perjury.
....................
Subscribed and sworn to before me this . . . . day of
......
....................
The period provided for recording the claim of lien is a
period of limitation and no action to foreclose a lien shall be
maintained unless the claim of lien is filed for recording
within the ninety-day period stated. The lien claimant shall
give a copy of the claim of lien to the owner or reputed owner
by mailing it by certified or registered mail or by personal
service within fourteen days of the time the claim of lien is
filed for recording. Failure to do so results in a forfeiture of
any right the claimant may have to attorneys' fees and costs
against the owner under RCW 60.04.181. [1992 c 126 § 7;
1991 c 281 § 9.]
*Reviser's note: The reference to chapter 64.04 RCW appears to be
erroneous. Reference to chapter 60.04 RCW was apparently intended.
60.04.101
60.04.101 Separate residential units—Time for filing. When furnishing labor, professional services, materials,
or equipment for the construction of two or more separate
residential units, the time for filing claims of lien against each
separate residential unit shall commence to run upon the cessation of the furnishing of labor, professional services, materials, or equipment on each residential unit, as provided in
this chapter. For the purposes of this section a separate residential unit is defined as consisting of one residential structure together with any garages or other outbuildings appurtenant thereto. [1991 c 281 § 10.]
60.04.111
60.04.111 Recording—Fees. The county auditor shall
record the notice of claim of lien in the same manner as deeds
and other instruments of title are recorded under chapter
65.08 RCW. Notices of claim of lien for registered land need
not be recorded in the Torrens register. The county auditor
shall charge no higher fee for recording notices of claim of
lien than other documents. [1991 c 281 § 11.]
60.04.121
60.04.121 Lien—Assignment. Any lien or right of lien
created by this chapter and the right of action to recover
therefor, shall be assignable so as to vest in the assignee all
rights and remedies of the assignor, subject to all defenses
thereto that might be made. [1991 c 281 § 12.]
60.04.131
60.04.131 Claims—Designation of amount due. In
every case in which the notice of claim of lien is recorded
against two or more separate pieces of property owned by the
same person or owned by two or more persons jointly or otherwise, who contracted for the labor, professional services,
material, or equipment for which the notice of claim of lien is
recorded, the person recording the notice of claim of lien
(2004 Ed.)
Mechanics’ and Materialmen’s Liens
shall designate in the notice of claim of lien the amount due
on each piece of property, otherwise the lien is subordinated
to other liens that may be established under this chapter. The
lien of such claim does not extend beyond the amount designated as against other creditors having liens upon any of such
pieces of property. [1991 c 281 § 13.]
60.04.141
60.04.141 Lien—Duration—Procedural limitations.
No lien created by this chapter binds the property subject to
the lien for a longer period than eight calendar months after
the claim of lien has been recorded unless an action is filed by
the lien claimant within that time in the superior court in the
county where the subject property is located to enforce the
lien, and service is made upon the owner of the subject property within ninety days of the date of filing the action; or, if
credit is given and the terms thereof are stated in the claim of
lien, then eight calendar months after the expiration of such
credit; and in case the action is not prosecuted to judgment
within two years after the commencement thereof, the court,
in its discretion, may dismiss the action for want of prosecution, and the dismissal of the action or a judgment rendered
thereon that no lien exists shall constitute a cancellation of
the lien. This is a period of limitation, which shall be tolled by
the filing of any petition seeking protection under Title
Eleven, United States Code by an owner of any property subject to the lien established by this chapter. [1992 c 126 § 8;
1991 c 281 § 14.]
60.04.151
60.04.151 Rights of owner—Recovery options. The
lien claimant shall be entitled to recover upon the claim
recorded the contract price after deducting all claims of other
lien claimants to whom the claimant is liable, for furnishing
labor, professional services, materials, or equipment; and in
all cases where a claim of lien shall be recorded under this
chapter for labor, professional services, materials, or equipment supplied to any lien claimant, he or she shall defend any
action brought thereupon at his or her own expense. During
the pendency of the action, the owner may withhold from the
prime contractor the amount of money for which a claim is
recorded by any subcontractor, supplier, or laborer. In case of
judgment against the owner or the owner's property, upon the
lien, the owner shall be entitled to deduct from sums due to
the prime contractor the principal amount of the judgment
from any amount due or to become due from the owner to the
prime contractor plus such costs, including interest and attorneys' fees, as the court deems just and equitable, and the
owner shall be entitled to recover back from the prime contractor the amount for which a lien or liens are established in
excess of any sum that may remain due from the owner to the
prime contractor. [1992 c 126 § 9; 1991 c 281 § 15.]
60.04.161
60.04.161 Bond in lieu of claim. Any owner of real
property subject to a recorded claim of lien under this chapter, or contractor, subcontractor, lender, or lien claimant who
disputes the correctness or validity of the claim of lien may
record, either before or after the commencement of an action
to enforce the lien, in the office of the county recorder or
auditor in the county where the claim of lien was recorded, a
bond issued by a surety company authorized to issue surety
bonds in the state. The surety shall be listed in the latest fed(2004 Ed.)
60.04.171
eral department of the treasury list of surety companies
acceptable on federal bonds, published in the Federal Register, as authorized to issue bonds on United States government
projects with an underwriting limitation, including applicable
reinsurance, equal to or greater than the amount of the bond
to be recorded. The bond shall contain a description of the
claim of lien and real property involved, and be in an amount
equal to the greater of five thousand dollars or two times the
amount of the lien claimed if it is ten thousand dollars or less,
and in an amount equal to or greater than one and one-half
times the amount of the lien if it is in excess of ten thousand
dollars. If the claim of lien affects more than one parcel of
real property and is segregated to each parcel, the bond may
be segregated the same as in the claim of lien. A separate
bond shall be required for each claim of lien made by separate claimants. However, a single bond may be used to guarantee payment of amounts claimed by more than one claim of
lien by a single claimant so long as the amount of the bond
meets the requirements of this section as applied to the aggregate sum of all claims by such claimant. The condition of the
bond shall be to guarantee payment of any judgment upon the
lien in favor of the lien claimant entered in any action to
recover the amount claimed in a claim of lien, or on the claim
asserted in the claim of lien. The effect of recording a bond
shall be to release the real property described in the notice of
claim of lien from the lien and any action brought to recover
the amount claimed. Unless otherwise prohibited by law, if
no action is commenced to recover on a lien within the time
specified in RCW 60.04.141, the surety shall be discharged
from liability under the bond. If an action is timely commenced, then on payment of any judgment entered in the
action or on payment of the full amount of the bond to the
holder of the judgment, whichever is less, the surety shall be
discharged from liability under the bond.
Nothing in this section shall in any way prohibit or limit
the use of other methods, devised by the affected parties to
secure the obligation underlying a claim of lien and to obtain
a release of real property from a claim of lien. [1992 c 126 §
10; 1991 c 281 § 16.]
60.04.171
60.04.171 Foreclosure—Parties. The lien provided by
this chapter, for which claims of lien have been recorded,
may be foreclosed and enforced by a civil action in the court
having jurisdiction in the manner prescribed for the judicial
foreclosure of a mortgage. The court shall have the power to
order the sale of the property. In any action brought to foreclose a lien, the owner shall be joined as a party. The interest
in the real property of any person who, prior to the commencement of the action, has a recorded interest in the property, or any part thereof, shall not be foreclosed or affected
unless they are joined as a party.
A person shall not begin an action to foreclose a lien
upon any property while a prior action begun to foreclose
another lien on the same property is pending, but if not made
a party plaintiff or defendant to the prior action, he or she
may apply to the court to be joined as a party thereto, and his
or her lien may be foreclosed in the same action. The filing of
such application shall toll the running of the period of limitation established by RCW 60.04.141 until disposition of the
application or other time set by the court. The court shall
grant the application for joinder unless to do so would create
[Title 60 RCW—page 7]
60.04.181
Title 60 RCW: Liens
an undue delay or cause hardship which cannot be cured by
the imposition of costs or other conditions as the court deems
just. If a lien foreclosure action is filed during the pendency
of another such action, the court may, on its own motion or
the motion of any party, consolidate actions upon such terms
and conditions as the court deems just, unless to do so would
create an undue delay or cause hardship which cannot be
cured by the imposition of costs or other conditions. If consolidation of actions is not permissible under this section, the
lien foreclosure action filed during the pendency of another
such action shall not be dismissed if the filing was the result
of mistake, inadvertence, surprise, excusable neglect, or
irregularity. An action to foreclose a lien shall not be dismissed at the instance of a plaintiff therein to the prejudice of
another party to the suit who claims a lien. [1992 c 126 § 11;
1991 c 281 § 17.]
60.04.190
60.04.190 Destruction or concealment of property—
Removal from premises—Penalty. See RCW 61.12.030,
9.45.060.
60.04.191
60.04.191 Effect of note—Personal action preserved.
The taking of a promissory note or other evidence of indebtedness for any labor, professional services, material, or
equipment furnished for which a lien is created by this chapter does not discharge the lien therefor, unless expressly
received as payment and so specified therein.
Nothing in this chapter shall be construed to impair or
affect the right of any person to whom any debt may be due
for the furnishing of labor, professional services, material, or
equipment to maintain a personal action to recover the debt
against any person liable therefor. [1991 c 281 § 19.]
60.04.201
60.04.181
60.04.181 Rank of lien—Application of proceeds—
Attorneys' fees. (1) In every case in which different construction liens are claimed against the same property, the
court shall declare the rank of such lien or class of liens,
which liens shall be in the following order:
(a) Liens for the performance of labor;
(b) Liens for contributions owed to employee benefit
plans;
(c) Liens for furnishing material, supplies, or equipment;
(d) Liens for subcontractors, including but not limited to
their labor and materials; and
(e) Liens for prime contractors, or for professional services.
(2) The proceeds of the sale of property must be applied
to each lien or class of liens in order of its rank and, in an
action brought to foreclose a lien, pro rata among each claimant in each separate priority class. A personal judgment may
be rendered against any party personally liable for any debt
for which the lien is claimed. If the lien is established, the
judgment shall provide for the enforcement thereof upon the
property liable as in the case of foreclosure of judgment liens.
The amount realized by such enforcement of the lien shall be
credited upon the proper personal judgment. The deficiency,
if any, remaining unsatisfied, shall stand as a personal judgment, and may be collected by execution against any party
liable therefor.
(3) The court may allow the prevailing party in the
action, whether plaintiff or defendant, as part of the costs of
the action, the moneys paid for recording the claim of lien,
costs of title report, bond costs, and attorneys' fees and necessary expenses incurred by the attorney in the superior court,
court of appeals, supreme court, or arbitration, as the court or
arbitrator deems reasonable. Such costs shall have the priority of the class of lien to which they are related, as established
by subsection (1) of this section.
(4) Real property against which a lien under this chapter
is enforced may be ordered sold by the court and the proceeds
deposited into the registry of the clerk of the court, pending
further determination respecting distribution of the proceeds
of the sale. [1992 c 126 § 12; 1991 c 281 § 18.]
[Title 60 RCW—page 8]
60.04.201 Material exempt from process—Exception. Whenever material is furnished for use in the improvement of property subject to a lien created by this chapter, the
material is not subject to attachment, execution, or other legal
process to enforce any debt due by the purchaser of the material, except a debt due for the purchase money thereof, so
long as in good faith, the material is about to be applied in the
improvement of such property. [1991 c 281 § 20.]
60.04.211
60.04.211 Lien—Effect on community interest. The
claim of lien, when filed as required by this chapter, shall be
notice to the husband or wife of the person who appears of
record to be the owner of the property sought to be charged
with the lien, and shall subject all the community interest of
both husband and wife to the lien. [1991 c 281 § 21.]
60.04.221
60.04.221 Notice to lender—Withholding of funds.
Any lender providing interim or construction financing
where there is not a payment bond of at least fifty percent of
the amount of construction financing shall observe the following procedures and the rights and liabilities of the lender
and potential lien claimant shall be affected as follows:
(1) Any potential lien claimant who has not received a
payment within five days after the date required by their contract, invoice, employee benefit plan agreement, or purchase
order may within thirty-five days of the date required for payment of the contract, invoice, employee benefit plan agreement, or purchase order, give a notice as provided in subsections (2) and (3) of this section of the sums due and to become
due, for which a potential lien claimant may claim a lien
under this chapter.
(2) The notice shall be signed by the potential lien claimant or some person authorized to act on his or her behalf.
(3) The notice shall be given in writing to the lender at
the office administering the interim or construction financing, with a copy given to the owner and appropriate prime
contractor. The notice shall be given by:
(a) Mailing the notice by certified or registered mail to
the lender, owner, and appropriate prime contractor; or
(b) Delivering or serving the notice personally and
obtaining evidence of delivery in the form of a receipt or
other acknowledgment signed by the lender, owner, and
appropriate prime contractor, or an affidavit of service.
(2004 Ed.)
Mechanics’ and Materialmen’s Liens
(4) The notice shall state in substance and effect as follows:
(a) The person, firm, trustee, or corporation filing the
notice is entitled to receive contributions to any type of
employee benefit plan or has furnished labor, professional
services, materials, or equipment for which a lien is given by
this chapter.
(b) The name of the prime contractor, common law
agent, or construction agent ordering the same.
(c) A common or street address of the real property being
improved or the legal description of the real property.
(d) The name, business address, and telephone number
of the lien claimant.
The notice to the lender may contain additional information but shall be in substantially the following form:
NOTICE TO REAL PROPERTY LENDER
(Authorized by RCW . . . . . .)
TO: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Name of Lender)
................................................
(Administrative Office-Street Address)
................................................
(City) (State) (Zip)
AND TO: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Owner)
AND TO: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Prime Contractor-If Different Than Owner)
................................................
(Name of Laborer, Professional,
Materials, or Equipment Supplier)
whose business address is . . . . . ., did at the property located
at . . . . . .
(Check appropriate box) ( ) perform labor ( ) furnish professional services ( ) provide materials ( ) supply equipment as
follows:
................................................
................................................
................................................
which was ordered by . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(Name of Person)
whose address was stated to be . . . . . . . . . . . . . . . . . . . . . . .
................................................
The amount owing to the undersigned according to contract or purchase order for labor, supplies,
or equipment (as above mentioned) is the sum of
. . . . . . Dollars ($. . . . . .). Said sums became due
and owing as of
................................................
(State Date)
.................... ,
.....................
You are hereby required to withhold from any
future draws on existing construction financing
which has been made on the subject property (to the
extent there remain undisbursed funds) the sum of
. . . . . . Dollars ($. . . . . .).
(2004 Ed.)
60.04.221
IMPORTANT
Failure to comply with the requirements of this notice may
subject the lender to a whole or partial compromise of any
priority lien interest it may have pursuant to RCW 60.04.226.
DATE:
.........................
By:
Its:
.........................
.........................
(5) After the receipt of the notice, the lender shall withhold from the next and subsequent draws the amount claimed
to be due as stated in the notice. Alternatively, the lender may
obtain from the prime contractor or borrower a payment bond
for the benefit of the potential lien claimant in an amount sufficient to cover the amount stated in the potential lien claimant's notice. The lender shall be obligated to withhold
amounts only to the extent that sufficient interim or construction financing funds remain undisbursed as of the date the
lender receives the notice.
(6) Sums so withheld shall not be disbursed by the
lender, except by the written agreement of the potential lien
claimant, owner, and prime contractor in such form as may be
prescribed by the lender, or the order of a court of competent
jurisdiction.
(7) In the event a lender fails to abide by the provisions
of *subsections (4) and (5) of this section, then the mortgage,
deed of trust, or other encumbrance securing the lender shall
be subordinated to the lien of the potential lien claimant to the
extent of the interim or construction financing wrongfully
disbursed, but in no event more than the amount stated in the
notice plus costs as fixed by the court, including reasonable
attorneys' fees.
(8) Any potential lien claimant shall be liable for any
loss, cost, or expense, including reasonable attorneys' fees
and statutory costs, to a party injured thereby arising out of
any unjust, excessive, or premature notice filed under purported authority of this section. "Notice" as used in this subsection does not include notice given by a potential lien
claimant of the right to claim liens under this chapter where
no actual claim is made.
(9)(a) Any owner of real property subject to a notice to
real property lender under this section, or the contractor, subcontractor, lender, or lien claimant who believes the claim
that underlies the notice is frivolous and made without reasonable cause, or is clearly excessive may apply by motion to
the superior court for the county where the property, or some
part thereof is located, for an order commanding the potential
lien claimant who issued the notice to the real property lender
to appear before the court at a time no earlier than six nor
later than fifteen days from the date of service of the application and order on the potential lien claimant, and show cause,
if any he or she has, why the notice to real property lender
should not be declared void. The motion shall state the
grounds upon which relief is asked and shall be supported by
the affidavit of the applicant or his or her attorney setting
forth a concise statement of the facts upon which the motion
is based.
(b) The order shall clearly state that if the potential lien
claimant fails to appear at the time and place noted, the notice
to lender shall be declared void and that the potential lien
claimant issuing the notice shall be ordered to pay the costs
[Title 60 RCW—page 9]
60.04.226
Title 60 RCW: Liens
requested by the applicant including reasonable attorneys'
fees.
(c) The clerk of the court shall assign a cause number to
the application and obtain from the applicant a filing fee of
thirty-five dollars.
(d) If, following a hearing on the matter, the court determines that the claim upon which the notice to real property
lender is based is frivolous and made without reasonable
cause, or clearly excessive, the court shall issue an order
declaring the notice to real property lender void if frivolous
and made without reasonable cause, or reducing the amount
stated in the notice if clearly excessive, and awarding costs
and reasonable attorneys' fees to the applicant to be paid by
the person who issued the notice. If the court determines that
the claim underlying the notice to real property lender is not
frivolous and was made with reasonable cause, and is not
clearly excessive, the court shall issue an order so stating and
awarding costs and reasonable attorneys' fees to the issuer of
the notice to be paid by the applicant.
(e) Proceedings under this subsection shall not affect
other rights and remedies available to the parties under this
chapter or otherwise. [1992 c 126 § 13; 1991 c 281 § 22.]
*Reviser's note: The reference to subsections (4) and (5) of this section
appears to be erroneous. Engrossed Senate Bill No. 6441 changed the subsection numbers. Subsections (4) and (5) are now subsections (5) and (6).
60.04.226
60.04.226 Financial encumbrances—Priorities.
Except as otherwise provided in RCW 60.04.061 or
60.04.221, any mortgage or deed of trust shall be prior to all
liens, mortgages, deeds of trust, and other encumbrances
which have not been recorded prior to the recording of the
mortgage or deed of trust to the extent of all sums secured by
the mortgage or deed of trust regardless of when the same are
disbursed or whether the disbursements are obligatory. [1991
c 281 § 23.]
60.04.230
60.04.230 Construction projects—Notice to be
posted by prime contractor—Penalty. (1) For any construction project costing more than five thousand dollars the
prime contractor shall post in plain view for the duration of
the construction project a legible notice at the construction
job site containing the following:
(a) The legal description, or the tax parcel number
assigned pursuant to RCW 84.40.160, and the street address
if available, and may include any other identification of the
construction site by the prime contractor;
(b) The property owner's name, address, and phone number;
(c) The prime contractor's business name, address, phone
number, current state contractor registration number and
identification; and
(d) Either:
(i) The name, address, and phone number of the office of
the lender administering the interim construction financing, if
any; or
(ii) The name and address of the firm that has issued a
payment bond, if any, on behalf of the prime contractor for
the protection of the owner if the bond is for an amount not
less than fifty percent of the total amount of the construction
project.
[Title 60 RCW—page 10]
(2) For any construction project which requires a building permit under local ordinance, compliance with the posting requirements of RCW 19.27.095 shall constitute compliance with this section. Otherwise, the information shall be
posted as set forth in this section.
(3) Failure to comply with this section shall subject the
prime contractor to a civil penalty of not more than five thousand dollars, payable to the county where the project is
located. [1991 c 281 § 28; 1984 c 202 § 3.]
60.04.250
60.04.250 Informational materials on construction
lien laws—Master documents. The department of labor and
industries shall prepare master documents that provide informational material about construction lien laws and available
safeguards against real property lien claims. The material
shall include methods of protection against lien claims,
including obtaining lien release documents, performance
bonds, joint payee checks, the opportunity to require contractor disclosure of all potential lien claimants as a condition of
payment, and lender supervision under *RCW 60.04.200 and
60.04.210. The material shall also include sources of further
information, including the department of labor and industries
and the office of the attorney general. [1990 c 81 § 1; 1988 c
270 § 1.]
*Reviser's note: RCW 60.04.200 and 60.04.210 were repealed by 1991
c 281 § 31, effective April 1, 1992.
Effective date—1988 c 270: "This act shall take effect July 1, 1989."
[1988 c 270 § 4.]
60.04.255
60.04.255 Informational materials on construction
lien laws—Copies—Liability. (1) Every real property
lender shall provide a copy of the informational material
described in RCW 60.04.250 to all persons obtaining loans,
the proceeds of which are to be used for residential construction or residential repair or remodeling.
(2) Every contractor shall provide a copy of the informational material described in RCW 60.04.250 to customers
required to receive contractor disclosure notice under RCW
18.27.114.
(3) No cause of action may lie against the state, a real
property lender, or a contractor arising from the provisions of
RCW 60.04.250 and this section.
(4) For the purpose of this section, "real property lender"
means a bank, savings bank, savings and loan association,
credit union, mortgage company, or other corporation, association, partnership, or individual that makes loans secured
by real property in this state. [1988 c 270 § 2.]
Effective date—1988 c 270: See note following RCW 60.04.250.
60.04.261
60.04.261 Availability of information. The prime contractor shall immediately supply the information listed in
RCW 19.27.095(2) to any person who has contracted to supply materials, equipment, or professional services or who is a
subcontractor on the improvement, as soon as the identity and
mailing address of such subcontractor, supplier, or professional is made known to the prime contractor either directly
or through another subcontractor, supplier, or professional.
[1991 c 281 § 24.]
(2004 Ed.)
Chattel Liens
60.04.900
60.04.900 Liberal construction—1991 c 281. RCW
19.27.095, 60.04.230, and 60.04.011 through 60.04.226 and
60.04.261 are to be liberally construed to provide security for
all parties intended to be protected by their provisions. [1991
c 281 § 25.]
60.04.901
60.04.901 Captions not law—1991 c 281. Section
headings as used in this chapter do not constitute any part of
the law. [1991 c 281 § 26.]
60.04.902
60.04.902 Effective date, application—1991 c 281.
This act shall take effect June 1, 1992. Lien claims based on
an improvement commenced by a potential lien claimant on
or after June 1, 1992, shall be governed by the provisions of
this act. [1992 c 126 § 14; 1991 c 281 § 32.]
60.08.020
60.08.020 Notice of lien—Contents—Form. In order
to make such lien effectual the lien claimant shall, within
ninety days from the date of delivery of such chattel to the
owner, file in the office of the auditor of the county in which
such chattel is kept, a lien notice, which notice shall state the
name of the claimant, the name of the owner, a description of
the chattel upon which the claimant has performed labor or
furnished material, the amount for which a lien is claimed
and the date upon which such expenditure of labor or material
was completed, which notice shall be signed by the claimant
or someone on his behalf, and may be in substantially the following form:
CHATTEL LIEN NOTICE.
..........
against
..........
60.04.903
60.04.903 Effective date—1992 c 126. This act is necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its
existing public institutions, and shall take effect June 1, 1992,
except section 14 of this act which shall take effect immediately [March 31, 1992]. [1992 c 126 § 15.]
60.04.904
60.04.904 Application of chapter 281, Laws of 1991,
to actions pending as of June 1, 1992—1993 c 357. All
rights acquired and liabilities incurred under acts or parts of
act repealed by chapter 281, Laws of 1991, are hereby preserved, and all actions pending as of June 1, 1992, shall proceed under the law as it existed at the time chapter 281, Laws
of 1991, took effect. [1993 c 357 § 1.]
Retroactive application—1993 c 357: "This act is remedial in nature
and shall be applied retroactively to June 1, 1992." [1993 c 357 § 2.]
Effective date—1993 c 357: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately
[May 15, 1993]." [1993 c 357 § 3.]
Chapter 60.08
Chapter 60.08 RCW
CHATTEL LIENS
Sections
60.08.010
60.08.020
60.08.030
60.08.040
60.08.050
60.08.060
60.08.010
Lien authorized.
Notice of lien—Contents—Form.
Priority of lien.
Enforcement of lien—Limitation of action.
Rank of lien—Personal judgment—Deficiency—Costs.
Filing notice of liens.
60.08.010 Lien authorized. Every person, firm or corporation who shall have performed labor or furnished material in the construction or repair of any chattel at the request
of its owner, shall have a lien upon such chattel for such labor
performed or material furnished, notwithstanding the fact
that such chattel be surrendered to the owner thereof: PROVIDED, HOWEVER, That no such lien shall continue, after
the delivery of such chattel to its owner, as against the rights
of third persons who, prior to the filing of the lien notice as
hereinafter provided for, may have acquired the title to such
chattel in good faith, for value and without actual notice of
the lien. [1917 c 68 § 1; 1909 c 166 § 1; 1905 c 72 § 1; RRS
§ 1154.]
(2004 Ed.)
60.08.050
Claimant,
Owner.





Notice is hereby given that . . . . . . has and claims a
lien upon (here insert description of chattel), owned by
. . . . . . for the sum of . . . . . . dollars, for and on account of
labor, skill and material expended upon said . . . . . . . . .
which was completed upon the . . . . day of . . . . . ., 19. . .
.....................
Claimant.
[1983 c 33 § 1; 1917 c 68 § 2; 1905 c 72 § 2; RRS § 1155.]
60.08.030
60.08.030 Priority of lien. The liens created by this
chapter are preferred to any lien, mortgage or other encumbrance which may attach subsequently to the time of the commencement of the performance of the labor, or the furnishing
of the materials for which the right of lien is given by this
chapter, and are also preferred to any lien, mortgage or other
encumbrance which may have attached previously to that
time, and which was not filed or recorded so as to create constructive notice of the same prior to that time, and of which
the lien claimant has no notice. [1917 c 68 § 3; 1905 c 72 §
3; RRS § 1156.]
60.08.040
60.08.040 Enforcement of lien—Limitation of action.
The lien herein provided for may be enforced against all persons having a junior or subsequent interest in any such chattel, by judicial procedure or by summary procedure as set
forth in chapter 60.10 RCW within nine months after the filing of such lien notice, and if no such action shall be commenced within such time such lien shall cease. [1995 c 62 §
4; 1969 c 82 § 11; 1917 c 68 § 4; 1905 c 72 § 4; RRS § 1157.]
Secured transactions: Article 62A.9A RCW.
60.08.050
60.08.050 Rank of lien—Personal judgment—Deficiency—Costs. In every case originating in or removed to a
court of competent jurisdiction, in which different liens are
claimed against the same property, the court, in the judgment,
must declare the rank of such lien or class of liens, which
shall be in the following order:
(1) All persons performing labor;
(2) All persons furnishing material;
And the proceeds of the sale of the property must be
applied to each lien or class of liens in the order of its rank;
and personal judgment may be rendered in an action brought
[Title 60 RCW—page 11]
60.08.060
Title 60 RCW: Liens
to foreclose a lien, against any party personally liable for any
debt for which the lien is claimed, and if the lien be established, the judgment shall provide for the enforcement
thereof upon the property liable as in case of foreclosure of
mortgages; and the amount realized by such enforcement of
the lien shall be credited upon the proper personal judgment,
and the deficiency, if any, remaining unsatisfied, shall stand
as a personal judgment, and may be collected by execution
against the party liable therefor. The court may allow, as part
of the costs of the action, the moneys paid for filing or recording the claim, and a reasonable attorney's fee in the action.
[1917 c 68 § 5; RRS § 1157a.]
60.08.060
60.08.060 Filing notice of liens. Upon presentation of
such lien notice to the auditor of any county, he shall file the
same, and endorse thereon the time of the reception, the number thereof, and shall enter the same in a suitable book or file
(but need not record the same). Such book or file shall have
herewith an alphabetic index, in which the county auditor
shall index such notice by noting the name of the owner,
name of lien claimant, description of property, date of lien
(which shall be the date upon which such expenditure of
labor, skill or material was completed), date of filing and
when released, the date of release. [1983 c 33 § 2; 1905 c 72
§ 5; RRS § 1158.]
Chapter 60.10
Chapter 60.10 RCW
PERSONAL PROPERTY LIENS—
SUMMARY FORECLOSURE
Sections
60.10.010
60.10.020
60.10.023
60.10.027
60.10.030
60.10.040
60.10.050
60.10.060
60.10.070
Definitions.
Methods of foreclosure.
Judicial foreclosure of personal property liens.
Judicial foreclosure of a security interest.
Notice and sale—Priorities—Sale procedure—Surplus—Deficiency.
Rights and interest of purchaser for value.
Redemption.
Noncompliance with chapter—Rights of lien debtor.
"Commercially reasonable."
ing jurisdiction in the district in which the property is situated
in accordance with RCW 60.10.023, if the value of the claim
does not exceed the jurisdictional limit of the district court
provided in RCW 3.66.020; or (2) an action in the superior
court having jurisdiction in the county in which the property
is situated in accordance with RCW 60.10.023, if the value of
the claim exceeds the jurisdictional limit of the district court
provided in RCW 3.66.020; or (3) summary procedure as
provided in this chapter. [1995 c 62 § 5; 1991 c 33 § 3; 1969
c 82 § 3.]
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001. For later enactment, see Article
62A.9A RCW.
Effective date—1991 c 33: See note following RCW 3.66.020.
60.10.023
60.10.023 Judicial foreclosure of personal property
liens. The provisions of chapter 61.12 RCW, so far as they
are applicable, govern in actions for the judicial foreclosure
of liens on personal property excluded by *RCW 62A.9-104
from the provisions of the Uniform Commercial Code, Title
62A RCW. The lien holder may proceed on the lien; and if
there is a separate obligation secured by the lien, the lienholder may bring suit on the obligation. If the lienor proceeds
on the obligation, the court shall, in addition to entering a
decree foreclosing the lien, render judgment for the amount
due on the obligation. The decree shall direct the sale of the
lien property, and if there is a judgment on an obligation and
the proceeds of the sale are insufficient to satisfy the judgment, the sheriff is authorized to proceed under the same execution and levy on and sell other property of the lien debtor,
not exempt from execution, for the sum remaining unsatisfied.
Redemption rights and the rights and interest of a purchaser for value under this section are governed by RCW
60.10.040 and 60.10.050. [1995 c 62 § 1; 1969 c 82 § 1. Formerly RCW 61.12.162.]
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001. For later enactment, see Article
62A.9A RCW.
60.10.010
60.10.010 Definitions. As used in this chapter:
(1) The term "lien debtor" means the person who is obligated, owes payment or other performance. Where the lien
debtor and the owner of the collateral are not the same person, the term "lien debtor" means the owner of the collateral.
(2) "Collateral" means the property subject to a statutory
lien.
(3) "Lien holder" means a person who, by statute, has
acquired a lien on the property of the lien debtor, or such person's successor in interest.
(4) "Secured party" has the same meaning as used in
Article 9A of the Uniform Commercial Code (Title 62A
RCW). [2001 c 32 § 3; 1969 c 82 § 2.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
Judicial foreclosure of personal property liens: RCW 60.10.023.
60.10.020
60.10.020 Methods of foreclosure. Any lien upon personal property, excluded by *RCW 62A.9-104 from the provisions of the Uniform Commercial Code (Title 62A RCW),
may be foreclosed by: (1) An action in the district court hav[Title 60 RCW—page 12]
60.10.027
60.10.027 Judicial foreclosure of a security interest.
The provisions of chapter 61.12 RCW, so far as they are
applicable, shall also be available to a secured party seeking
to enforce a security interest by judicial proceedings as
authorized by *RCW 62A.9-501(1). In such a proceeding, the
court shall enter a judgment foreclosing the security interest
and shall render judgment for the amount due on the secured
obligation. The decree shall direct the sale of property that is
subject to the foreclosed security interest and is within the
court's jurisdiction, and if the proceeds of sale are insufficient
to satisfy the judgment, the sheriff is authorized to proceed
under the same execution and levy on other property of the
judgment debtor, not exempt from execution, for the sum
remaining unsatisfied.
The rights and interest of a purchaser for value are governed by RCW 60.10.040 except as otherwise provided in
Title 62A RCW. [1995 c 62 § 2.]
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001. For later enactment, see Article
62A.9A RCW.
(2004 Ed.)
Crop Liens
60.10.030
60.10.030 Notice and sale—Priorities—Sale procedure—Surplus—Deficiency. (1) A lien foreclosure authorized by RCW 60.10.020 may be summarily foreclosed by
notice and sale as provided herein. The lien holder may sell,
or otherwise dispose of the collateral in its then condition or
following any commercially reasonable preparation or processing. The proceeds of disposition shall be applied in the
order following to
(a) the reasonable expenses of retaking, holding, preparing for sale, selling and the like and, to the extent provided for
in the agreement and not prohibited by law, the reasonable
attorneys' fees and legal expenses incurred by the secured
party;
(b) the satisfaction of indebtedness secured by the lien
under which the disposition is made;
(c) the satisfaction of indebtedness secured by any subordinate security interest in the collateral if written notification
of demand therefor is received before distribution of the proceeds is completed. If requested by the lien holder, the holder
of a subordinate security interest must seasonably furnish
reasonable proof of his interest, and unless he does so, the
lien holder need not comply with his demand.
(2) The lien holder must account to the lien debtor for
any surplus, and, unless otherwise agreed, the lien debtor is
not liable for any deficiency.
(3) Disposition of the collateral may be by public or private proceedings and may be made by way of one or more
contracts. Sale or other disposition may be as a unit or in parcels and at any time and place and on any terms but every
aspect of the disposition including the method, manner, time,
place and terms must be commercially reasonable which
shall be construed as provided in RCW 60.10.070. Unless
collateral is perishable or threatens to decline speedily in
value or is of a type customarily sold on a recognized market,
reasonable notification of the time and place of any public
sale or reasonable notification of the time after which any private sale or other intended disposition is to be made shall be
sent by the lien holder to the lien debtor, and except in the
case of consumer goods to any other person who has a security interest in the collateral and who has duly filed a financing statement indexed in the name of the lien debtor in this
state or who is known by the lien holder to have a security
interest in the collateral. The lien holder may buy at any public sale and if the collateral is of a type customarily sold in a
recognized market or is of a type which is the subject of
widely distributed standard price quotations he may buy at
private sale. [1969 c 82 § 4.]
Chapter 60.11
(2) In any other case, if the purchaser acts in good faith.
[1995 c 62 § 6; 1969 c 82 § 5.]
60.10.050
60.10.050 Redemption. At any time before the lien
holder has disposed of collateral or entered into a contract for
its disposition under this chapter, the lien debtor or any other
secured party may redeem the collateral by tendering fulfillment of all obligations to the holder that are secured by the
collateral as well as the expenses reasonably incurred by the
lien holder in holding and preparing the collateral for disposition, in arranging for the sale, and for reasonable attorneys'
fees and legal expenses. [1995 c 62 § 7; 1969 c 82 § 6.]
60.10.060
60.10.060 Noncompliance with chapter—Rights of
lien debtor. If it is established that the lien holder is not proceeding in accordance with the provisions of this chapter disposition may be ordered or restrained on appropriate terms
and conditions. If the disposition has occurred the lien debtor
or any person entitled to notification or whose security interest has been made known to the lien holder prior to the disposition has a right to recover from the lien holder any loss
caused by a failure to comply with the provisions of this
chapter. The lien debtor has a right to recover in any event an
amount not less than ten percent of the original lien claimed.
[1969 c 82 § 7.]
60.10.070
60.10.070 "Commercially reasonable." As used in
this chapter, "commercially reasonable" shall be construed in
a manner consistent with the following:
The fact that a better price could have been obtained by
a sale at a different time or in a different method from that
selected by the lien holder is not of itself sufficient to establish that the sale was not made in a commercially reasonable
manner. If the lien holder either sells the collateral in the
usual manner in any recognized market therefor or if he sells
at the price current in such market at the time of his sale or if
he has otherwise sold in conformity with reasonable commercial practices among dealers in the type of property sold he
has sold in a commercially reasonable manner. A disposition
which has been approved in any judicial proceeding or by any
bona fide creditors' committee or representative of creditors
shall conclusively be deemed to be commercially reasonable,
but this sentence does not indicate that any such approval
must be obtained in any case nor does it indicate that any disposition not so approved is not commercially reasonable.
[1969 c 82 § 8.]
Chapter 60.11
60.10.040
60.10.040 Rights and interest of purchaser for value.
When a lien is foreclosed in accordance with the provisions
of this chapter, the disposition transfers to a purchaser for
value all of the lien debtor's rights therein, discharges the lien
under which it is made and any security interest or lien subordinate thereto. The purchaser takes free of all such rights and
interests even though the lien holder fails to comply with the
requirements of this chapter:
(1) In the case of a public sale, if the purchaser has no
knowledge of any defects in the sale and if he does not buy in
collusion with the lien holder, other bidders or the person
conducting the sale; or
(2004 Ed.)
Chapter 60.11 RCW
CROP LIENS
Sections
60.11.010
60.11.020
60.11.030
60.11.040
60.11.050
60.11.060
60.11.070
60.11.080
60.11.090
60.11.100
60.11.110
Definitions.
Persons entitled to crop liens—Property subject to lien.
Attachment and effectiveness of lien on crops and proceeds—
Filing.
Statement of lien—Filing—Contents—Duration.
Priorities of liens and security interests.
Foreclosure and enforcement of crop lien.
Judicial foreclosure.
Summary foreclosure.
Rights and interest of purchaser for value.
Redemption.
Noncompliance with chapter—Rights of lien debtor.
[Title 60 RCW—page 13]
60.11.010
60.11.120
60.11.130
60.11.140
60.11.900
60.11.901
60.11.902
60.11.903
60.11.904
Title 60 RCW: Liens
"Commercially reasonable."
Limitation of action to foreclose.
Termination statement.
Savings—Liens created under prior law.
Section captions.
Severability—1986 c 242.
Effective date—1986 c 242.
Transition rule for filings made before July 1, 2001.
60.11.010 Definitions. As used in this chapter, the following terms have the meanings indicated unless the context
clearly requires otherwise.
(1) "Crop" means all products of the soil either growing
or cropped, cut, or gathered which require annual planting,
harvesting, or cultivating. A crop includes orchard crops, but
does not include vegetation produced by the powers of nature
alone, nursery stock, or vegetation intended as a permanent
enhancement of the land itself.
(2) "Handler" means a person who prepares an orchard
crop for market for the account of, or as agent for, the producer of the orchard crop, which preparation includes, but is
not limited to, receiving, storing, packing, marketing, selling,
or delivering the orchard crop; and who takes delivery of the
orchard crop from the producer of the orchard crop or from
another handler. "Handler" does not include a person who
solely transports the orchard crop from the producer or
another handler to another person.
(3) "Landlord" means a person who leases or subleases
to a tenant real property upon which crops are growing or will
be grown.
(4) "Orchard crop" means cherries, peaches, nectarines,
plums or prunes, pears, apricots, and apples.
(5) "Secured party" and "security interest" have the same
meaning as used in the Uniform Commercial Code, Title 62A
RCW.
(6) "Supplier" includes, but is not limited to, a person
who furnishes seed, furnishes and/or applies commercial fertilizer, pesticide, fungicide, weed killer, or herbicide, including spraying and dusting, upon the land of the grower or landowner, or furnishes any work or labor upon the land of the
grower or landowner including tilling, preparing for the
growing of crops, sowing, planting, cultivating, cutting, digging, picking, pulling, or otherwise harvesting any crop
grown thereon, or in gathering, securing, or housing any crop
grown thereon, or in threshing any grain or hauling to any
warehouse any crop, including grain, grown thereon.
(7) "Lien debtor" means the person who is obligated or
owes payment or other performance. If the lien debtor and the
owner of the property encumbered by the crop lien or security
interest are not the same person, "lien debtor" means the
owner of the property encumbered by the crop lien or security
interest.
(8) "Lien holder" means a person who, by statute, has
acquired a lien on the property of the lien debtor, or such person's successor in interest. [2000 c 250 § 9A-824; 1991 c 286
§ 1; 1986 c 242 § 1.]
60.11.010
Effective date—2000 c 250: See RCW 62A.9A-701.
60.11.020 Persons entitled to crop liens—Property
subject to lien. (1) A landlord whose lease or other agreement with the tenant provides for cash rental payment shall
have a lien upon all crops grown upon the demised land in
which the landlord has an interest for payment of no more
60.11.020
[Title 60 RCW—page 14]
than one year's rent, where the last or only payment of such
one year's rent is due or will become due within six months
following the last day of harvest of the crops encumbered by
the crop lien. A landlord with a crop share agreement has an
interest in the growing crop which shall not be encumbered
by crop liens except as provided in subsections (2) and (3) of
this section.
(2) A supplier shall have a lien upon all crops for which
the supplies are used or applied for payment of the purchase
price of the supplies and/or services performed: PROVIDED, That the landlord's interest in the crop shall only be
subject to the lien for the amount obligated to be paid by the
landlord if prior written consent of the landlord is obtained or
if the landlord has agreed in writing with the tenant to pay or
be responsible for a portion of the supplies and/or services
provided by the lien holder.
(3) A handler shall have a lien on all orchard crops delivered by the lien debtor or another handler to the handler and
on all proceeds of the orchard crops for payment of: (a) All
customary charges for the ordinary and necessary handling of
the orchard crop, including but not limited to charges for
transporting, receiving, inspecting, materials and supplies
furnished, washing, waxing, sorting, packing, storing, promoting, marketing, selling, advertising, insuring, or otherwise handling the lien debtor's orchard crop; and (b) reasonable cooperative per unit retainages, and for all governmental
or quasi-governmental assessments imposed by statute, ordinance, or government regulation. Charges shall not include
direct or indirect advances or extensions of credit to a lien
debtor. [2000 c 250 § 9A-825; 1991 c 286 § 2; 1986 c 242 §
2.]
Effective date—2000 c 250: See RCW 62A.9A-701.
60.11.030
60.11.030 Attachment and effectiveness of lien on
crops and proceeds—Filing. (1) Upon the later of both: (a)
Execution of the lease or other agreement, or commencement
of delivery of such supplies, and/or of provision of such services giving rise to the crop lien; and (b) filing a financing
statement as required by RCW 62A.9A-310 and subsection
(3) of this section, the crop liens described in RCW 60.11.020
(1) and (2) shall become effective and attach to the subject
crop for all sums then and thereafter due and owing the lien
holder under this chapter, and those liens shall continue in all
identifiable cash proceeds of the crop.
(2) Upon the delivery of an orchard crop by the lien
debtor or another handler to a handler without the necessity
of filing, the crop lien described in RCW 60.11.020(3) shall
become effective and attach to and be perfected in the delivered orchard crop for all sums then and thereafter due and
owing the lien holder under this chapter, and the lien shall
continue and be perfected in all proceeds of the orchard crop.
(3) Except as provided in RCW 60.11.040(4) with
respect to the lien of a landlord, and except for the lien of a
handler on orchard crops as provided in RCW 60.11.020(3),
the lien holder must file the required financing statement during the period after the commencement of delivery of such
supplies and/or of provision of such services, but before the
completion of the harvest of the crops for which the lien is
claimed, or in the case of a lien for furnishing work or labor,
before the end of the fortieth day after the cessation of the
(2004 Ed.)
Crop Liens
work or labor for which the lien is claimed. If the lien holder
under the crop liens described in RCW 60.11.020 (1) or (2) is
to be allowed costs, disbursements, and attorneys' fees, the
lien holder must also mail a copy of such financing statement
to the last known address of the debtor by certified mail,
return receipt requested, within ten days after filing the
financing statement. [2001 c 32 § 4; 2000 c 250 § 9A-826;
1991 c 286 § 3; 1986 c 242 § 3.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
Effective date—2000 c 250: See RCW 62A.9A-701.
60.11.040
60.11.040 Statement of lien—Filing—Contents—
Duration. (1) Within fourteen days of receipt of a written
request from the lien debtor, or other person who provides the
lien holder authorization from the lien debtor for such statement, the lien holder shall provide that person a statement
described in subsection (2) of this section. Failure timely to
provide the statement shall cause the lien holder to be liable
to the person requesting for the attorneys' fees and costs
incurred by that person to obtain the statement, together with
damages incurred by that person due to the failure of the lien
holder to provide the statement, including in the case of the
lien debtor any loss resulting from the lien debtor's inability
to obtain financing, or the increased costs thereof.
(2) The statement shall be in writing, authenticated by
the claimant, and shall contain in substance the following
information:
(a) The name and address of the claimant;
(b) The name and address of the debtor;
(c) The date of commencement of performance for
which the lien is claimed;
(d) A description of the labor services, materials, or supplies furnished;
(e) A description of the crop and its location to be
charged with the lien sufficient for identification; and
(f) The signature of the claimant.
(3) The statement need not be filed with the department
of licensing.
(4) A lien for rent claimed by a landlord pursuant to this
chapter shall be effective during the term of the lease for a
period of up to five years. A financing statement for a landlord lien covering a lease term longer than five years may be
continued in accordance with RCW 62A.9A-515(d). A landlord who has a right to a share of the crop may place suppliers
on notice by filing a financing statement in the same manner
as provided for filing a financing statement for a landlord's
lien. [2000 c 250 § 9A-827; 1991 c 286 § 4; 1989 c 229 § 1;
1986 c 242 § 4.]
Effective date—2000 c 250: See RCW 62A.9A-701.
Severability—1989 c 229: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or
the application of the provision to other persons or circumstances is not
affected." [1989 c 229 § 2.]
60.11.050
60.11.050 Priorities of liens and security interests.
(1) Except as provided in subsections (2), (3), (4), and (5) of
this section, conflicting liens and security interests in crops
and their proceeds shall rank in accordance with the time of
filing.
(2) The lien created in RCW 60.11.020(2) in favor of any
person who furnishes any work or labor upon the land of the
(2004 Ed.)
60.11.070
grower or landowner shall be preferred and prior to any other
lien or security interest upon the crops to which they attach
including the liens described in subsections (3), (4), and (5)
of this section.
(3) The lien created in RCW 60.11.020(3) in favor of
handlers is preferred and prior to a lien or security interest
described in subsection (4) or (5) of this section and to any
other lien or security interest upon the orchard crops to which
they attach except the liens in favor of a person who furnishes
work or labor upon the land of the grower or landlord. Whenever more than one handler holds a handler's lien created by
RCW 60.11.020(3) in the same orchard crop, unless the
affected parties otherwise agree in writing, the later of the
liens to attach has priority over all previously attached handlers' liens created by RCW 60.11.020(3).
(4) A lien or security interest in crops otherwise entitled
to priority pursuant to subsection (1) of this section shall be
subordinate to a later perfected lien or security interest
incurred to produce the crop to the extent that obligations
secured by such earlier perfected security interest or lien were
not incurred to produce such crops.
(5) A lien or security interest in crops otherwise entitled
to priority pursuant to subsection (1) of this section shall be
subordinate to a properly perfected landlord's lien. [2000 c
250 § 9A-828; 1991 c 286 § 5; 1986 c 242 § 5.]
Effective date—2000 c 250: See RCW 62A.9A-701.
60.11.060
60.11.060 Foreclosure and enforcement of crop lien.
Any lien created by this chapter may be foreclosed or
enforced by: (1) An action in the district court having jurisdiction in the district in which the real property on which the
crop in question was grown is situated in accordance with
RCW 60.11.070, if the value of the claim does not exceed the
jurisdictional limit of the district court provided in RCW
3.66.020; or (2) an action in the superior court having jurisdiction in the county in which the real property on which the
crop in question was grown is situated in accordance with
RCW 60.11.070, if the value of the claim exceeds the jurisdictional limit of the district court provided in RCW
3.66.020; or (3) summary procedure as provided in RCW
60.11.080; or (4) procedures in Part 6 of Article 9A of the
Uniform Commercial Code. [2000 c 250 § 9A-829; 1991 c
33 § 4; 1986 c 242 § 6.]
Effective date—2000 c 250: See RCW 62A.9A-701.
Effective date—1991 c 33: See note following RCW 3.66.020.
60.11.070
60.11.070 Judicial foreclosure. The lien holder may
proceed upon his or her lien; and if there is a separate obligation in writing to pay the same, secured by the lien, he or she
may bring suit upon such separate promise. When he or she
proceeds on the promise, if there is a specific agreement
therein contained, for the payment of a certain sum or there is
a separate obligation for the sum in addition to a decree of
sale of lien property, judgment shall be rendered for the
amount due upon the promise or other instrument, the payment of which is thereby secured; the decree shall direct the
sale of the lien property and if the proceeds of the sale are
insufficient under the execution, the sheriff is authorized to
levy upon and sell other property of the lien debtor, not
exempt from execution, for the sum remaining unsatisfied. In
[Title 60 RCW—page 15]
60.11.080
Title 60 RCW: Liens
a judicial foreclosure, the court shall allow reasonable attorneys' fees and disbursements for establishing a lien. [2000 c
250 § 9A-830; 1986 c 242 § 7.]
Effective date—2000 c 250: See RCW 62A.9A-701.
60.11.080
60.11.080 Summary foreclosure. (1) A lien may be
summarily foreclosed by notice and sale as provided in this
section. The lien holder may sell or otherwise dispose of the
collateral in its existing condition or following any commercially reasonable preparation or processing. The proceeds of
disposition shall be applied in the order following to:
(a) The reasonable expenses of retaking, holding, preparing for sale, selling and the like, and to the extent provided for
in the agreement and not prohibited by law, the reasonable
attorneys' fees and legal expenses incurred by the secured
party;
(b) The satisfaction of indebtedness secured by the lien
under which the disposition is made;
(c) The satisfaction of indebtedness secured by any subordinate security interest in the collateral if written notification of demand therefor is received before distribution of the
proceeds is completed. If requested by the lien holder, the
holder of a subordinate security interest must seasonably furnish reasonable proof of his or her interest, and unless he or
she does so, the lien holder need not comply with the
demand.
(2) The lien holder shall account to the lien debtor for
any surplus, and, unless otherwise agreed, the lien debtor is
not liable for any deficiency.
(3) Disposition of the collateral may be by public or private proceedings and may be made by way of one or more
contracts. Sale or other disposition may be as a unit or in parcels and at any time and place and on any terms but every
aspect of the disposition including the method, manner, time,
place, and terms must be commercially reasonable. Unless
collateral is perishable or threatens to decline quickly in
value or is of a type customarily sold on a recognized market,
reasonable notification of the time after which any private
sale or other intended disposition is to be made shall be sent
by the lien holder to the lien debtor, and to any other person
who has a duly filed crop lien, or who has a security interest
in the collateral and has duly filed a financing statement
indexed in the name of the lien debtor in this state, or who is
known by the lien holder to have a security interest or crop
lien in the collateral. The lien holder may buy at any public
sale, and if the collateral is of a type customarily sold in a recognized market or is of a type which is the subject of widely
distributed standard price quotations the lien holder may buy
at private sale. [1986 c 242 § 8.]
60.11.090
60.11.090 Rights and interest of purchaser for value.
When a lien is foreclosed in accordance with RCW
60.11.060, the disposition transfers to a purchaser for value
all of the lien debtor's right therein and discharges the lien
under which it is made and any security interest or lien subordinate thereto. The purchaser takes free of all such rights and
interest even though the lien holder fails to comply with the
requirements of this chapter or of any judicial proceedings
under RCW 60.11.070:
[Title 60 RCW—page 16]
(1) In the case of a public sale, if the purchaser has no
knowledge of any defects in the sale and if he or she does not
buy in collusion with the lien holder, other bidders, or the
person conducting the sale; or
(2) In any other case, if the purchaser acts in good faith.
[1986 c 242 § 9.]
60.11.100
60.11.100 Redemption. The right of the lien debtor and
others to redeem collateral shall be as provided in RCW
62A.9A-623. [2000 c 250 § 9A-831; 1986 c 242 § 10.]
Effective date—2000 c 250: See RCW 62A.9A-701.
60.11.110
60.11.110 Noncompliance with chapter—Rights of
lien debtor. If the lien holder is not proceeding in accordance with the provisions of this chapter, disposition may be
ordered or restrained on appropriate terms and conditions. If
the disposition has occurred the lien debtor or any person
entitled to notification or whose security interest has been
made known to the lien holder prior to the disposition has a
right to recover from the lien holder any loss caused by a failure to comply with the provisions of this chapter. [1986 c
242 § 11.]
60.11.120
60.11.120 "Commercially reasonable." For purposes
of this chapter, "commercially reasonable" has the meaning
given and shall be construed in a manner consistent with
RCW 62A.9A-627. [2000 c 250 § 9A-832; 1986 c 242 § 12.]
Effective date—2000 c 250: See RCW 62A.9A-701.
60.11.130
60.11.130 Limitation of action to foreclose. Judicial
foreclosure or summary procedure as provided in RCW
60.11.060 shall be brought within twenty-four calendar
months after filing the financing statement for the lien,
except: (1) In the case of a landlord lien which shall be
twenty-four calendar months from the date of default on the
lease, and (2) in the case of a handler's lien on a given orchard
crop which shall be twenty-four calendar months from the
date of default on payment of the charges described in RCW
60.11.020(3) attributable to that orchard crop. Upon expiration of such time, the claimed lien shall expire. [2000 c 250
§ 9A-833; 1986 c 242 § 13.]
Effective date—2000 c 250: See RCW 62A.9A-701.
60.11.140
60.11.140 Termination statement. Whenever the total
amount of the lien has been fully paid and as otherwise provided in RCW 62A.9A-513 (c) and (d), within twenty days
following receipt of an authenticated demand following such
full payment of the lien, the lien holder filing a lien shall send
to the lien debtor or file with the department of licensing a
termination statement for the financing statement. Failure to
file a termination statement by the lien holder or the assignee
of the lien holder shall cause the lien holder or its assignee to
be liable to the debtor for the attorneys' fees and costs
incurred by the debtor to have the lien terminated together
with damages incurred by the debtor due to the failure of the
lien holder to terminate the lien. [2000 c 250 § 9A-834; 1991
c 286 § 6; 1986 c 242 § 14.]
Effective date—2000 c 250: See RCW 62A.9A-701.
(2004 Ed.)
Processor and Preparer Liens for Agricultural Products
60.11.900
60.11.900 Savings—Liens created under prior law.
Liens created prior to January 1, 1987, which are based on
statutes repealed by *this act, shall remain in effect for the
duration provided by the law in effect before January 1, 1987.
The department of licensing shall notify persons requesting
information for crop liens that, for this transition period,
records of crop liens may exist at a county auditor's office as
well as at the department of licensing. [1986 c 242 § 15.]
*Reviser's note: "this act" [1986 c 242] repealed chapters 60.12, 60.14,
and 60.22 RCW.
60.11.901
60.11.901 Section captions. As used in this chapter,
section captions constitute no part of the law. [1986 c 242 §
18.]
60.11.902
60.11.902 Severability—1986 c 242. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1986 c 242 § 19.]
60.11.903
60.11.903 Effective date—1986 c 242. This act shall
take effect January 1, 1987. [1986 c 242 § 21.]
60.11.904
60.11.904 Transition rule for filings made before
July 1, 2001. All statements filed with the department of
licensing under this chapter before July 1, 2001, shall satisfy
the requirements of RCW 62A.9A-310 and 60.11.030 for filing a financing statement. [2001 c 32 § 5; 2000 c 250 § 9A835.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
Effective date—2000 c 250: See RCW 62A.9A-701.
Chapter 60.13 RCW
PROCESSOR AND PREPARER LIENS FOR
AGRICULTURAL PRODUCTS
Chapter 60.13
Sections
60.13.010
60.13.020
60.13.030
60.13.035
60.13.040
60.13.050
60.13.060
60.13.070
60.13.010
Definitions.
Processor lien.
Preparer lien for grain, hay, or straw.
Notice of preparer lien for dairy products—Proof of lien.
Filing of statement evidencing lien—Contents—Standard filing forms, fees, and procedures.
Priority of lien.
Duration of lien—Statement of discharge.
Foreclosure and enforcement of lien—Costs.
60.13.010 Definitions. As used in this chapter, the
terms defined in this section have the meanings indicated
unless the context clearly requires otherwise.
(1) "Agricultural product" means any unprocessed horticultural, vermicultural and its byproducts, viticultural, berry,
poultry, poultry product, grain, bee, or other agricultural
products, and includes mint or mint oil processed by or for
the producer thereof and hay and straw baled or prepared for
market in any manner or form and livestock. When used in
RCW 60.13.020, "agricultural product" means horticultural,
viticultural, aquacultural, or berry products, hay and straw,
milk and milk products, vegetable seed, or turf and forage
seed and applies only when such products are delivered to a
processor or conditioner in an unprocessed form.
(2004 Ed.)
60.13.030
(2) "Conditioner," "consignor," "person," and "producer" have the meanings defined in RCW 20.01.010.
(3) "Delivers" means that a producer completes the performance of all contractual obligations with reference to the
transfer of actual or constructive possession or control of an
agricultural product to a processor or conditioner or preparer,
regardless of whether the processor or conditioner or preparer
takes physical possession.
(4) "Preparer" means a person engaged in the business of
feeding livestock or preparing livestock products for market.
(5) "Processor" means any person, firm, company, or
other organization that purchases agricultural products
except milk and milk products from a consignor and that
cans, freezes, dries, dehydrates, cooks, presses, powders, or
otherwise processes those crops in any manner whatsoever
for eventual resale, or that purchases or markets milk from a
dairy producer and is obligated to remit payment to such
dairy producer directly.
(6) "Commercial fisherman" means a person licensed to
fish commercially for or to take food fish or shellfish or steelhead legally caught pursuant to executive order, treaty right,
or federal statute.
(7) "Fish" means food fish or shellfish or steelhead
legally caught pursuant to executive order, treaty right, or
federal statute. [2002 c 278 § 1; 1991 c 174 § 2; 1987 c 148
§ 1; 1985 c 412 § 1.]
60.13.020
60.13.020 Processor lien. Starting on the date a producer delivers any agricultural product to a processor or conditioner, the producer has a first priority statutory lien,
referred to as a "processor lien." A commercial fisherman
who delivers fish to a processor also has a first priority statutory "processor lien" starting on the date the fisherman delivers fish to the processor. This processor lien shall continue
until twenty days after payment for the product is due and
remains unpaid, without filing any notice of lien, for the contract price, if any, or the fair market value of the products
delivered. The processor lien attaches to the agricultural
products or fish delivered, to the processor's or conditioner's
inventory, and to the processor's or conditioner's accounts
receivable. However, no processor lien may attach to agricultural products or fish delivered by a producer or commercial
fisherman, or on the producer's or fisherman's behalf, to a
processor which is organized and operated on a cooperative
basis and of which the producer or fisherman is a member,
nor may such lien attach to such processor's inventory or
accounts receivable. [1987 c 148 § 2; 1985 c 412 § 2.]
60.13.030
60.13.030 Preparer lien for grain, hay, or straw.
Starting on the date a producer delivers grain, hay, or straw to
a preparer, the producer has a first priority statutory lien,
referred to as a "preparer lien." This preparer lien shall continue twenty days after payment for the product is due and
remains unpaid, without filing any notice of lien, for the contract price, if any, or the fair market value of the products
delivered. The preparer lien attaches to the agricultural products delivered by the producer to the preparer, and to the preparer's accounts receivable. [1985 c 412 § 3.]
[Title 60 RCW—page 17]
60.13.035
Title 60 RCW: Liens
60.13.035 Notice of preparer lien for dairy products—Proof of lien. A person who controls or possesses
amounts payable to the preparer of dairy products or the preparer's assigns, if the preparer or preparer's assigns is not a
producer-handler, which are properly encumbered by a preparer's lien upon an account receivable shall not be obligated
to pay a producer amounts to which the producer's preparer
lien has attached until that person receives written notice of
such lien, nor shall that person be liable to the producer for
any amounts paid out prior to receipt of said notice. The
notice required herein shall contain the information described
in RCW 60.13.040(2). If requested by the person responsible
for payment of such amounts, the producer must seasonably
furnish reasonable proof that the preparer lien continues to
exist and unless such proof is so furnished, that person has no
obligation to pay the producer. A preparer of dairy products
shall provide the name of the purchaser or marketing agent of
the products to the producer upon request.
Failure to furnish the written notice as provided in this
section shall not affect the status of the lien established under
this chapter in regard to the relationship with other creditors.
[1986 c 178 § 15.]
60.13.035
60.13.040 Filing of statement evidencing lien—Contents—Standard filing forms, fees, and procedures. (1) A
producer or commercial fisherman claiming a processor or
preparer lien may file a statement evidencing the lien with the
department of licensing after payment from the processor,
conditioner, or preparer to the producer or fisherman is due
and remains unpaid. For purposes of this subsection and
RCW 60.13.050, payment is due on the date specified in the
contract, or if not specified, then within thirty days from time
of delivery.
(2) The statement shall be in a record, authenticated by
the producer or fisherman, and shall contain in substance the
following information:
(a) A true statement or a reasonable estimate of the
amount demanded after deducting all credits and offsets;
(b) The name of the processor, conditioner, or preparer
who received the agricultural product or fish to be charged
with the lien;
(c) A description sufficient to identify the agricultural
product or fish to be charged with the lien;
(d) A statement that the amount claimed is a true and
bona fide existing debt as of the date of the filing of the notice
evidencing the lien;
(e) The date on which payment was due for the agricultural product or fish to be charged with the lien; and
(f) The department of licensing may by rule prescribe
standard filing forms, fees, and uniform procedures for filing
with, and obtaining information from, filing officers. [2002 c
278 § 2; 2001 c 32 § 6. Prior: 1987 c 189 § 7; 1987 c 148 §
3; 1985 c 412 § 4.]
60.13.040
Effective date—2001 c 32: See note following RCW 62A.9A-102.
60.13.050 Priority of lien. (1)(a) If a statement is filed
pursuant to RCW 60.13.040 within twenty days of the date
upon which payment from the processor, conditioner, or preparer to the producer or commercial fisherman is due and
remains unpaid, the processor or preparer lien evidenced by
the statement continues its priority over all other liens or
security interests upon agricultural products or fish, inventory, and accounts receivable, except as provided in (b) of
this subsection. Such priority is without regard to whether the
other liens or security interests attached before or after the
date on which the processor or preparer lien attached.
(b) The processor or preparer lien shall be subordinate to
liens for taxes or labor perfected before filing of the processor
or preparer lien.
(2) If the statement provided for in RCW 60.13.040 is
not filed within twenty days of the date payment is due and
remains unpaid, the processor or preparer lien shall thereupon
become subordinate to:
(a) A lien that has attached to the agricultural product or
fish, inventory, or accounts receivable before the date on
which the processor or preparer lien attaches; and
(b) A perfected security interest in the agricultural product or fish, inventory, or accounts receivable. [1987 c 148 §
4; 1985 c 412 § 5.]
60.13.060 Duration of lien—Statement of discharge.
(1) The processor lien shall terminate twelve months after,
and the preparer lien shall terminate fifty days after, the later
of the date of attachment or filing, unless a suit to foreclose
the lien has been filed before that time as provided in RCW
60.13.070.
(2) If a statement has been filed as provided in RCW
60.13.040 and the producer or commercial fisherman has
received payment for the obligation secured by the lien, the
producer or fisherman shall promptly file with the department of licensing a statement declaring that full payment has
been received and that the lien is discharged. If, after payment, the producer or fisherman fails to file such statement of
discharge within ten days following a request to do so, the
producer or fisherman shall be liable to the processor, conditioner, or preparer in the sum of one hundred dollars plus
actual damages caused by the failure. [2002 c 278 § 3; 1987
c 148 § 5; 1985 c 412 § 6.]
60.13.060
60.13.070 Foreclosure and enforcement of lien—
Costs. (1) The processor or preparer liens may be foreclosed
and enforced by civil action in superior court.
(2) In all suits to enforce processor or preparer liens, the
court shall, upon entering judgment, allow to the prevailing
party as a part of the costs, all moneys paid for the filing and
recording of the lien and reasonable attorney fees. [1985 c
412 § 7.]
60.13.070
Chapter 60.16
Chapter 60.16 RCW
LABOR LIENS ON ORCHARDS AND
ORCHARD LANDS
Sections
60.16.010
60.16.020
60.16.030
Liens authorized.
Notice of lien—Filing—Contents—Foreclosure.
Limitation of action to foreclose—Costs.
60.13.050
[Title 60 RCW—page 18]
60.16.010 Liens authorized. Any person or corporation who shall do or cause to be done any labor upon any
orchard or orchard lands, in pruning, spraying, cultivating
and caring for the same, at the request of the owner thereof,
or his agent, shall have a lien upon such orchard and orchard
60.16.010
(2004 Ed.)
Lien for Labor and Services on Timber and Lumber
lands for such work and labor so performed. [1917 c 110 § 1;
RRS § 1131-1.]
60.16.020 Notice of lien—Filing—Contents—Foreclosure. Any person or corporation claiming the benefit of
this chapter, must within forty days after the close of such
work or labor for each season during which such work and
labor is done, file for record with the county auditor of the
county in which said work and labor was performed and in
which said land or part thereof is situated, a claim of lien
which shall be in substance in accordance with the provisions
of *RCW 60.04.060, so far as the same is applicable, which
said claim of lien shall be verified as in said section provided,
and such lien may be enforced in a civil action in the same
manner as near as may be, as provided in *RCW 60.04.120.
[1917 c 110 § 2; RRS § 1131-2.]
60.16.020
*Reviser's note: RCW 60.04.060 and 60.04.120 were repealed by 1991
c 281 § 31, effective April 1, 1992.
60.16.030 Limitation of action to foreclose—Costs.
Any action to foreclose such claim of lien shall be brought
within eight calendar months after the filing of such claim for
lien as provided in RCW 60.16.020 and in any such action
brought to enforce such lien, the court shall allow as part of
the costs the money paid for making, filing and recording
such claim of lien and a reasonable attorney's fee. [1917 c
110 § 3; RRS § 1131-3.]
60.16.030
Chapter 60.24
Chapter 60.24 RCW
LIEN FOR LABOR AND SERVICES ON
TIMBER AND LUMBER
Sections
60.24.020
60.24.030
60.24.033
60.24.035
60.24.038
60.24.040
60.24.070
60.24.075
60.24.080
60.24.100
60.24.110
60.24.120
60.24.130
60.24.140
60.24.150
60.24.160
60.24.170
60.24.180
60.24.190
60.24.195
60.24.200
Liens on saw logs, spars, piles, cord wood, shingle bolts or
other timber.
Lien on lumber—"Lumber" defined.
Lien on real property for labor or services on timber and lumber.
Lien for stumpage.
Priority of lien.
Period covered by labor liens.
Period covered by stumpage lien.
Claims—Contents—Form.
Filing claim for stumpage lien.
Recording claims—Fees.
Limitation of action.
Venue—Procedure.
Sheriff as receiver—Deposit to recover possession—Costs.
Pleadings by defendant—Amendments—Hearing.
Enforcement against all or part of property.
Errors in claim, effect of.
Purchase of property subject to lien—Presumption of notice.
Joinder—Costs.
Judgment—Sale—Disposition of proceeds.
Sale of property subject to lien—When.
Damages for eloigning, injuring, destroying or removing
marks, etc.—Recovery.
Lien under this chapter extends to real property on which labor and services
are performed: RCW 60.24.033.
60.24.020 Liens on saw logs, spars, piles, cord wood,
shingle bolts or other timber. Every person performing
labor upon or who shall assist in obtaining or securing saw
logs, spars, piles, cord wood, shingle bolts or other timber,
and the owner or owners of any tugboat or towboat, which
shall tow or assist in towing, from one place to another within
this state, any saw logs, spars, piles, cord wood, shingle bolts
60.24.020
(2004 Ed.)
60.24.035
or other timber, and the owner or owners of any team or any
logging engine, which shall haul or assist in hauling from one
place to another within this state, any saw logs, spars, piles,
cord wood, shingle bolts or other timber, and the owner or
owners of any logging or other railroad over which saw logs,
spars, piles, cord wood, shingle bolts, or other timber shall be
transported and delivered, shall have a lien upon the same for
the work or labor done upon, or in obtaining or securing, or
for services rendered in towing, transporting, hauling, or
driving, the particular saw logs, spars, cord wood, shingle
bolts, or other timber in said claim of lien described whether
such work, labor or services was done, rendered or performed
at the instance of the owner of the same or his agent. Scalers,
and bull cooks, and cooks, flunkeys and waiters in lumber
camps, shall be regarded as persons who assist in obtaining or
securing the timber herein mentioned. [1923 c 10 § 1; 1907 c
9 § 1; 1895 c 88 § 1; 1893 c 132 § 1; RRS § 1162. Prior:
Code 1881 § 1941; 1879 p 100 § 2; 1877 p 217 § 3; 1860 p
340 § 1.]
60.24.030
60.24.030 Lien on lumber—"Lumber" defined.
Every person performing work or labor or assisting in manufacturing saw logs and other timber into lumber and shingles,
has a lien upon such lumber while the same remains at the
mill where it was manufactured, or in the possession or under
the control of the manufacturer, whether such work or labor
was done at the instance of the owner of such logs or his
agent or any contractor or subcontractor of such owner. The
term lumber, as used in this chapter, shall be held and be construed to mean all logs or other timber sawed or split for use,
including beams, joists, planks, boards, shingles, laths,
staves, hoops, and every article of whatsoever nature or
description manufactured from saw logs or other timber.
[1893 c 132 § 2; 1893 c 10 § 1; RRS § 1163. Prior: Code
1881 § 1942; 1877 p 217 § 4. Formerly RCW 60.24.010,
part.]
60.24.033
60.24.033 Lien on real property for labor or services
on timber and lumber. The lot tract, parcel of land, or any
other type of real property or real property improvements
upon which the type of activities listed in RCW 60.24.020,
60.24.030, or 60.24.035 are to be performed, or so much
property thereof as may be necessary to satisfy the lien and
the judgment thereon, to be determined by the court on rendering judgment in a foreclosure of lien, shall also be subject
to the lien to the extent of its interest of the persons who in
their own behalf, or through any of their agents, caused any
of the types of activities listed in RCW 60.24.020, 60.24.030,
or 60.24.035. [1986 c 179 § 1. Formerly RCW 60.04.045.]
60.24.035
60.24.035 Lien for stumpage. Any person who shall
permit another to go upon his timber land and cut thereon saw
logs, spars, piles or other timber, has a lien upon the same for
the price agreed to be paid for such privilege, or for the price
such privilege would be reasonably worth in case there was
no express agreement fixing the price. [1893 c 132 § 3; RRS
§ 1164. Prior: Code 1881 § 1943; 1877 p 217 § 5. Formerly
RCW 60.24.060.]
[Title 60 RCW—page 19]
60.24.038
Title 60 RCW: Liens
60.24.038 Priority of lien. The liens provided for in
this chapter are preferred liens and are prior to any other
liens, and no sale or transfer of any saw logs, spars, piles or
other timber or manufactured lumber or shingles shall divest
the lien thereon as herein provided, and as between liens provided for in this chapter those for work and labor shall be preferred: PROVIDED, That as between liens for work and
labor claimed by several laborers on the same logs or lot of
logs the claim or claims for work or labor done or performed
on the identical logs proceeded against to the extent that said
logs can be identified, shall be preferred as against the general claim of lien for work and labor recognized and provided
for in this chapter. [1893 c 132 § 4; RRS § 1165. Prior: Code
1881 § 1944; 1877 p 217 § 6. Formerly RCW 60.24.090.]
60.24.038
60.24.040
60.24.040 Period covered by labor liens. The person
rendering the service of [or] doing the work or labor named in
RCW 60.24.020 and 60.24.030 is only entitled to the liens as
provided herein for services, work or labor for the period of
eight calendar months, or any part thereof next preceding the
filing of the claim, as provided in *section 8 of this act. [1893
c 132 § 5; RRS § 1166. Prior: Code 1881 § 1945; 1877 p 217
§ 7.]
*Reviser's note: "section 8 of this act" is codified as RCW 60.24.080.
Section 7 (codified as RCW 60.24.075) was probably intended.
60.24.070 Period covered by stumpage lien. The person granting the privilege mentioned in RCW 60.24.035 is
only entitled to the lien as provided therein for saw logs,
spars, piles and other timber cut during the eight months next
preceding the filing of the claim, as herein provided in RCW
60.24.075. [1893 c 132 § 6; RRS § 1167. Prior: Code 1881
§ 1946; 1877 p 217 § 8.]
60.24.070
60.24.075 Claims—Contents—Form. Every person,
within sixty days after the close of the rendition of the services, or after the close of the work or labor mentioned in the
preceding sections, claiming the benefit hereof, must file for
record with the county auditor of the county in which such
saw logs, spars, piles, and other timber were cut, or in which
such lumber or shingles were manufactured, a claim containing a statement of his demand and the amount thereof, after
deducting as nearly as possible all just credits and offsets,
with the name of the person by whom he was employed, with
a statement of the terms and conditions of his contract, if any,
and in case there is no express contract, the claim shall state
what such service, work, or labor is reasonably worth; and it
shall also contain a description of the property to be charged
with the lien sufficient for identification with reasonable certainty, which claim must be verified by the oath of himself or
some other person to the effect that the affiant believes the
same to be true, which claim shall be substantially in the following form:
60.24.075
. . . . . . Claimant, vs. . . . . . .
Notice is hereby given that . . . . . . of . . . . . . county,
state of Washington, claims a lien upon a . . . . . . . . . of
. . . . . ., being about . . . . . . in quantity, which were cut or
manufactured in . . . . . . county, state of Washington, are
marked thus . . . . . ., and are now lying in . . . . . . . . ., for
labor performed upon and assistance rendered in . . . . . . said
[Title 60 RCW—page 20]
. . . . . .; that the name of the owner or reputed owner is
. . . . . .; that . . . . . . employed said . . . . . . to perform such
labor and render such assistance upon the following terms
and conditions, to wit:
The said . . . . . . agreed to pay the said . . . . . . for such
labor and assistance . . . . . .; that said contract has been faithfully performed and fully complied with on the part of said
. . . . . ., who performed labor upon and assisted in . . . . . .
said . . . . . . for the period of . . . . . .; that said labor and assistance were so performed and rendered upon said . . . . . .
between the . . . . day of . . . . . . and the . . . . day of . . . . . .;
and the rendition of said service was closed on the . . . . day
of . . . . . ., and sixty days have not elapsed since that time;
that the amount of claimant's demand for said service is
. . . . . .; that no part thereof has been paid except . . . . . ., and
there is now due and remaining unpaid thereon, after deducting all just credits and offsets, the sum of . . . . . ., in which
amount he claims a lien upon said . . . . . . . . . The said . . . . . .
also claims a lien on all said . . . . . . now owned by said
. . . . . . of said county to secure payment for the work and
labor performed in obtaining or securing the said logs, spars,
piles, or other timber, lumber, or shingles herein described.
State of Washington, county of . . . . . . ss.
. . . . . . being first duly sworn, on oath says that he is
. . . . . . named in the foregoing claim, has heard the same
read, knows the contents thereof, and believes the same to be
true.
.....................
Subscribed and sworn to before me this . . . . day of
......
.....................
[1986 c 179 § 2; 1893 c 132 § 7; RRS § 1168. Prior: Code
1881 § 1947; 1879 p 100 § 4; 1877 p 217 § 9. Formerly RCW
60.24.050.]
60.24.080 Filing claim for stumpage lien. Every person mentioned in RCW 60.24.035 claiming the benefit
thereof must file for record with the county auditor of the
county in which such saw logs, spars, piles or other timber
were cut, a claim in substance the same as provided in RCW
60.24.075, and verified as therein provided. [1893 c 132 § 8;
RRS § 1169. Prior: Code 1881 § 1948; 1877 p 218 § 10.]
60.24.080
60.24.100 Recording claims—Fees. The county auditor must record any claim filed under this chapter in a book
kept by him for that purpose, which record must be indexed,
as deeds and other conveyances are required by law to be
indexed, and for which he may receive the same fees as are
allowed by law for recording deeds and other instruments.
[1893 c 132 § 9; RRS § 1170. Prior: Code 1881 § 1949; 1877
p 218 § 11.]
60.24.100
60.24.110 Limitation of action. No lien provided for in
this chapter binds any saw logs, spars, piles or other timber,
or lumber and shingles, for a longer period than eight calendar months after the claim as herein provided has been filed,
unless a civil action be commenced in a proper court, within
that time, to enforce the same: PROVIDED, HOWEVER,
That in case such civil action so commenced should for any
60.24.110
(2004 Ed.)
Lien for Labor and Services on Timber and Lumber
cause other than the merits, be nonsuited or dismissed, then
the lien shall continue for the term of one calendar month, if
the said eight months have expired, to permit the commencement of another action thereon, which shall be as effective in
prolonging the lien as if it had been entered during the term of
eight months hereinbefore stated. [1893 c 132 § 10; RRS §
1171. Prior: Code 1881 § 1950; 1879 p 100 § 5; 1877 p 218
§ 12.]
60.24.120
60.24.120 Venue—Procedure. The liens provided for
in this chapter shall be enforced by a civil action in the superior court of the county wherein the lien was filed, and shall
be governed by the laws regulating the proceedings in civil
actions touching the mode and manner of trial, and the proceedings and laws to secure property so as to hold it for the
satisfaction of any lien that be against it; except as hereinafter
otherwise provided. [1893 c 132 § 11; RRS § 1172. Prior:
Code 1881 § 1951; 1877 p 218 § 13.]
60.24.130
60.24.130 Sheriff as receiver—Deposit to recover
possession—Costs. The sheriff of the county wherein the
lien is filed shall be the receiver when one is appointed, and
the superior court upon a showing made shall appoint such
receiver without notice, who shall be allowed such fees as
may seem just to the court, which fees shall be accounted for
by such sheriff as other fees collected by him in his official
capacity: PROVIDED, That at any time when any property
is in the custody of such sheriff under the provisions of this
chapter, and any person claiming any interest therein, may
deposit with the clerk of the court in which such action is
pending, a sum of money in an amount equal to the claim
sued upon, together with one hundred dollars, to cover costs
and interest, (unless the court shall make an order fixing a different amount to cover such costs and interest, then such an
amount as the court shall fix to secure such costs and interest,
which such action is being prosecuted) and shall have the
right to demand and receive forthwith from such sheriff the
possession and custody of such property: PROVIDED, That
in no action brought under the provisions of this chapter shall
costs be allowed to lien holders unless a demand has been
made for payment of his lien claim before commencement of
suit, unless the court shall find the claimants at time of bringing action had reasonable ground to believe that the owner or
the person having control of the property upon which such
lien is claimed was attempting to defraud such claimant, or
prevent the collection of such lien. [1899 c 90 § 1; 1893 c
132 § 12; RRS § 1173.]
60.24.140
60.24.140 Pleadings by defendant—Amendments—
Hearing. If the defendant or defendants appear in a suit to
enforce any lien provided by this chapter he or they shall
make their answer on the merits of the complaint, and any
motion or demurrer against the said complaint must be filed
with the answer; and no motion shall be allowed to make
complaint more definite and certain, if it appear to the court
that the defendant or defendants have or should have knowledge of the facts, or that it can be made more certain and definite by facts which will appear necessarily in the testimony;
but the case, unless the court sustains the demurrer to the
complaint, shall be heard on the merits as speedily as possi(2004 Ed.)
60.24.180
ble, and amendments of the pleadings, if necessary, shall be
liberally allowed. [1893 c 132 § 13; RRS § 1174.]
60.24.150
60.24.150 Enforcement against all or part of property. Any person who shall bring a civil action to enforce the
lien herein provided for, or any person having a lien as herein
provided for, who shall be made a party to any such civil
action, has the right to demand that such lien be enforced
against the whole or any part of the saw logs, spars, piles or
other timber or manufactured lumber or shingles upon which
he has performed labor or which he has assisted in securing
or obtaining, or which he has cut on his timber land during
the eight months next preceding the filing of his lien, for all
his labor upon or for all his assistance in obtaining or securing said logs, spars, piles or other timber, or in manufacturing
said lumber or shingles during the whole or any part of the
eight months mentioned in *section seven (7) of this act, or
for timber cut during the whole or any part of the eight
months above mentioned. And where proceedings are commenced against any lot of saw logs, spars, piles or other timber or lumber or shingles as herein provided, and some of the
lienors claim liens against the specific logs, spars, piles or
other timber or lumber or shingles proceeded against, and
others against the same generally, to secure their claims for
work and labor, the priority of the liens shall be determined as
hereinbefore provided. [1893 c 132 § 14; RRS § 1175. Prior:
Code 1881 § 1952; 1877 p 218 § 14.]
*Reviser's note: "section seven (7) of this act" is codified as RCW
60.24.075. Section 5 (codified as RCW 60.24.040) was probably intended.
60.24.160
60.24.160 Errors in claim, effect of. No mistake or
error in the statement of the demand, or of the amount of
credits and offsets allowed, or of the balance asserted to be
due to claimant, nor in the description of the property against
which the claim is filed, shall invalidate the lien, unless the
court finds that such mistake or error in the statement of the
demand, credits and offsets or of the balance due was made
with intent to defraud, or the court shall find that an innocent
third party without notice, direct or constructive, has, since
the claim was filed, become the bona fide owner of the property liened upon, and that the notice of claim was so deficient
that it did not put the party upon further inquiry, in any manner. [1893 c 132 § 15; RRS § 1176.]
60.24.170
60.24.170 Purchase of property subject to lien—Presumption of notice. It shall be conclusively presumed by the
court that a party purchasing the property liened upon within
thirty days given herein to claimants wherein to file their
liens, is not an innocent third party, nor that he has become a
bona fide owner of the property liened upon, unless it shall
appear that he has paid full value for the said property, and
has seen that the purchase money of the said property has
been applied to the payment of such bona fide claims as are
entitled to liens upon the said property under the provisions
of this chapter, according to the priorities herein established.
[1893 c 132 § 16; RRS § 1177.]
60.24.180
60.24.180 Joinder—Costs. Any number of persons
claiming liens under this chapter may join in the affidavit in
RCW 60.24.075 provided, and may join in the same action,
[Title 60 RCW—page 21]
60.24.190
Title 60 RCW: Liens
and when separate actions are commenced the court may consolidate them. The court shall also allow as part of the costs
the moneys paid for filing, making and recording the claim,
and a reasonable attorney's fee for each person claiming a
lien. [1901 c 23 § 1; 1893 c 132 § 17; RRS § 1178. Prior:
Code 1881 § 1691; 1877 p 219 § 15.]
60.24.190
60.24.190 Judgment—Sale—Disposition of proceeds.
In each civil action judgment must be rendered in favor of
each person having a lien for the amount due to him, and the
court or judge thereof shall order any property subject to the
lien herein provided for to be sold by the sheriff of the proper
county in the same manner that personal property is sold on
execution, and the court or judge shall apportion the proceeds
of such sale to the payment of each judgment, according to
the priorities established in this chapter pro rata in its class
according to the amount of such judgment. [1893 c 132 § 18;
RRS § 1179. Prior: Code 1881 § 1954; 1877 p 219 § 16.
FORMER PART OF SECTION: 1893 c 132 § 19; RRS §
1180 now codified as RCW 60.24.195.]
Sale of property on execution: Chapter 6.21 RCW.
60.24.195
60.24.195 Sale of property subject to lien—When.
The court or judge may order any property subject to a lien as
in this chapter provided to be sold by the sheriff as personal
property is sold on execution either before or at the time judgment is rendered, as provided in RCW 60.24.190, and the
proceeds of such sale must be paid into court to be applied as
in RCW 60.24.190 directed. [1893 c 132 § 19; RRS § 1180.
Prior: Code 1881 § 1955; 1877 p 219 § 17. Formerly RCW
60.24.190, part.]
Sale of property on execution: Chapter 6.21 RCW.
60.24.200
60.24.200 Damages for eloigning, injuring, destroying or removing marks, etc.—Recovery. Any person who
shall eloign, injure or destroy, or who shall render difficult,
uncertain or impossible of identification any saw logs, spars,
piles, shingles or other timber upon which there is a lien as
herein provided, without the express consent of the person
entitled to such lien, shall be liable to the lien holder for the
damages to the amount secured by his lien, and it being
shown to the court in the civil action to enforce said lien, it
shall be the duty of the court to enter a personal judgment for
the amount in such action against the said person, provided
he be a party to such action, or the damages may be recovered
by a civil action against such person. [1893 c 132 § 20; RRS
§ 1181. Prior: Code 1881 § 1956; 1877 p 219 § 18.]
Chapter 60.28 RCW
LIEN FOR LABOR, MATERIALS, TAXES ON
PUBLIC WORKS
Chapter 60.28
Sections
60.28.010
60.28.011
Retained percentage—Labor and material lien created—Bond
in lieu of retained funds—Termination before completion—
Chapter deemed exclusive—Release of ferry contract payments—Projects of farmers home administration.
Retained percentage—Labor and material lien created—Bond
in lieu of retained funds—Termination before completion—
Chapter deemed exclusive—Release of ferry contract payments—Projects of farmers home administration—General
contractor/construction manager procedure—Definitions.
[Title 60 RCW—page 22]
60.28.015
60.28.020
60.28.021
60.28.030
60.28.040
60.28.050
60.28.051
60.28.060
60.28.080
60.28.900
Recovery from retained percentage—Written notice to contractor of materials furnished.
Excess over lien claims to contractor.
Excess over lien claims paid to contractor.
Foreclosure of lien—Limitation of action—Release of funds.
Tax liens—Priority of liens.
Duties of disbursing officer upon final acceptance of contract.
Duties of disbursing officer upon completion of contract.
Duties of disbursing officer upon final acceptance of contract—Payments to department of revenue.
Delay due to litigation—Change order or force account directive—Costs—Arbitration—Termination.
Severability—1955 c 236.
Contractor's bond for payment of mechanics, laborers, materialmen, etc., on
public works: Chapter 39.08 RCW.
60.28.010
60.28.010 Retained percentage—Labor and material
lien created—Bond in lieu of retained funds—Termination before completion—Chapter deemed exclusive—
Release of ferry contract payments—Projects of farmers
home administration. (1) Contracts for public improvements or work, other than for professional services, by the
state, or any county, city, town, district, board, or other public
body, herein referred to as "public body", shall provide, and
there shall be reserved by the public body from the moneys
earned by the contractor on estimates during the progress of
the improvement or work, a sum not to exceed five percent,
said sum to be retained by the state, county, city, town, district, board, or other public body, as a trust fund for the protection and payment of any person or persons, mechanic, subcontractor or materialman who shall perform any labor upon
such contract or the doing of said work, and all persons who
shall supply such person or persons or subcontractors with
provisions and supplies for the carrying on of such work, and
the state with respect to taxes imposed pursuant to Title 82
RCW which may be due from such contractor. Every person
performing labor or furnishing supplies toward the completion of said improvement or work shall have a lien upon said
moneys so reserved: PROVIDED, That such notice of the
lien of such claimant shall be given in the manner and within
the time provided in RCW 39.08.030 as now existing and in
accordance with any amendments that may hereafter be made
thereto: PROVIDED FURTHER, That the board, council,
commission, trustees, officer or body acting for the state,
county or municipality or other public body; (a) at any time
after fifty percent of the original contract work has been completed, if it finds that satisfactory progress is being made,
may make any of the partial payments which would otherwise be subsequently made in full; but in no event shall the
amount to be retained be reduced to less than five percent of
the amount of the moneys earned by the contractor: PROVIDED, That the contractor may request that retainage be
reduced to one hundred percent of the value of the work
remaining on the project; and (b) thirty days after completion
and acceptance of all contract work other than landscaping,
may release and pay in full the amounts retained during the
performance of the contract (other than continuing retention
of five percent of the moneys earned for landscaping) subject
to the provisions of RCW 60.28.020.
(2) The moneys reserved under the provisions of subsection (1) of this section, at the option of the contractor, shall
be:
(2004 Ed.)
Lien for Labor, Materials, Taxes on Public Works
(a) Retained in a fund by the public body until thirty days
following the final acceptance of said improvement or work
as completed;
(b) Deposited by the public body in an interest bearing
account in a bank, mutual savings bank, or savings and loan
association, not subject to withdrawal until after the final
acceptance of said improvement or work as completed, or
until agreed to by both parties: PROVIDED, That interest on
such account shall be paid to the contractor;
(c) Placed in escrow with a bank or trust company by the
public body until thirty days following the final acceptance of
said improvement or work as completed. When the moneys
reserved are to be placed in escrow, the public body shall
issue a check representing the sum of the moneys reserved
payable to the bank or trust company and the contractor
jointly. Such check shall be converted into bonds and securities chosen by the contractor and approved by the public body
and such bonds and securities shall be held in escrow. Interest
on such bonds and securities shall be paid to the contractor as
the said interest accrues.
(3) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned
by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor, materials, or
equipment to the public project. Whenever the contractor or
subcontractor reserves funds earned by a subcontractor or
sub-subcontractor or supplier, the contractor or subcontractor
shall pay interest to the subcontractor or sub-subcontractor or
supplier at a rate equal to that received by the contractor or
subcontractor from reserved funds.
(4) With the consent of the public body the contractor
may submit a bond for all or any portion of the amount of
funds retained by the public body in a form acceptable to the
public body. Such bond and any proceeds therefrom shall be
made subject to all claims and liens and in the same manner
and priority as set forth for retained percentages in this chapter. The public body shall release the bonded portion of the
retained funds to the contractor within thirty days of accepting the bond from the contractor. Whenever a public body
accepts a bond in lieu of retained funds from a contractor, the
contractor shall accept like bonds from any subcontractors or
suppliers from which the contractor has retained funds. The
contractor shall then release the funds retained from the subcontractor or supplier to the subcontractor or supplier within
thirty days of accepting the bond from the subcontractor or
supplier.
(5) If the public body administering a contract, after a
substantial portion of the work has been completed, finds that
an unreasonable delay will occur in the completion of the
remaining portion of the contract for any reason not the result
of a breach thereof, it may, if the contractor agrees, delete
from the contract the remaining work and accept as final the
improvement at the stage of completion then attained and
make payment in proportion to the amount of the work
accomplished and in such case any amounts retained and
accumulated under this section shall be held for a period of
thirty days following such acceptance. In the event that the
work shall have been terminated before final completion as
provided in this section, the public body may thereafter enter
into a new contract with the same contractor to perform the
remaining work or improvement for an amount equal to or
(2004 Ed.)
60.28.011
less than the cost of the remaining work as was provided for
in the original contract without advertisement or bid. The
provisions of this chapter 60.28 RCW shall be deemed exclusive and shall supersede all provisions and regulations in conflict herewith.
(6) Whenever the department of transportation has contracted for the construction of two or more ferry vessels,
thirty days after completion and final acceptance of each
ferry vessel, the department may release and pay in full the
amounts retained in connection with the construction of such
vessel subject to the provisions of RCW 60.28.020: PROVIDED, That the department of transportation may at its discretion condition the release of funds retained in connection
with the completed ferry upon the contractor delivering a
good and sufficient bond with two or more sureties, or with a
surety company, in the amount of the retained funds to be
released to the contractor, conditioned that no taxes shall be
certified or claims filed for work on such ferry after a period
of thirty days following final acceptance of such ferry; and if
such taxes are certified or claims filed, recovery may be had
on such bond by the department of revenue and the materialmen and laborers filing claims.
(7) Contracts on projects funded in whole or in part by
farmers home administration and subject to farmers home
administration regulations shall not be subject to subsections
(1) through (6) of this section. [1986 c 181 § 6; 1984 c 146 §
1; 1982 c 170 § 1; 1981 c 260 § 14. Prior: 1977 ex.s. c 205 §
1; 1977 ex.s. c 166 § 5; 1975 1st ex.s. c 104 § 1; 1970 ex.s. c
38 § 1; 1969 ex.s. c 151 § 1; 1963 c 238 § 1; 1955 c 236 § 1;
1921 c 166 § 1; RRS § 10320.]
Application—1992 c 233: See RCW 39.04.901.
Severability—1977 ex.s. c 166: See note following RCW 39.08.030.
60.28.011
60.28.011 Retained percentage—Labor and material
lien created—Bond in lieu of retained funds—Termination before completion—Chapter deemed exclusive—
Release of ferry contract payments—Projects of farmers
home administration—General contractor/construction
manager procedure—Definitions. (1) Public improvement
contracts shall provide, and public bodies shall reserve, a
contract retainage not to exceed five percent of the moneys
earned by the contractor as a trust fund for the protection and
payment of: (a) The claims of any person arising under the
contract; and (b) the state with respect to taxes imposed pursuant to Title 82 RCW which may be due from such contractor.
(2) Every person performing labor or furnishing supplies
toward the completion of a public improvement contract shall
have a lien upon moneys reserved by a public body under the
provisions of a public improvement contract. However, the
notice of the lien of the claimant shall be given within fortyfive days of completion of the contract work, and in the manner provided in RCW 39.08.030.
(3) The contractor at any time may request the contract
retainage be reduced to one hundred percent of the value of
the work remaining on the project.
(a) After completion of all contract work other than landscaping, the contractor may request that the public body
release and pay in full the amounts retained during the performance of the contract, and sixty days thereafter the public
[Title 60 RCW—page 23]
60.28.011
Title 60 RCW: Liens
body must release and pay in full the amounts retained (other
than continuing retention of five percent of the moneys
earned for landscaping) subject to the provisions of chapters
39.12 and 60.28 RCW.
(b) Sixty days after completion of all contract work the
public body must release and pay in full the amounts retained
during the performance of the contract subject to the provisions of chapters 39.12 and 60.28 RCW.
(4) The moneys reserved by a public body under the provisions of a public improvement contract, at the option of the
contractor, shall be:
(a) Retained in a fund by the public body;
(b) Deposited by the public body in an interest bearing
account in a bank, mutual savings bank, or savings and loan
association. Interest on moneys reserved by a public body
under the provision of a public improvement contract shall be
paid to the contractor;
(c) Placed in escrow with a bank or trust company by the
public body. When the moneys reserved are placed in
escrow, the public body shall issue a check representing the
sum of the moneys reserved payable to the bank or trust company and the contractor jointly. This check shall be converted into bonds and securities chosen by the contractor and
approved by the public body and the bonds and securities
shall be held in escrow. Interest on the bonds and securities
shall be paid to the contractor as the interest accrues.
(5) The contractor or subcontractor may withhold payment of not more than five percent from the moneys earned
by any subcontractor or sub-subcontractor or supplier contracted with by the contractor to provide labor, materials, or
equipment to the public project. Whenever the contractor or
subcontractor reserves funds earned by a subcontractor or
sub-subcontractor or supplier, the contractor or subcontractor
shall pay interest to the subcontractor or sub-subcontractor or
supplier at a rate equal to that received by the contractor or
subcontractor from reserved funds.
(6) A contractor may submit a bond for all or any portion
of the contract retainage in a form acceptable to the public
body and from a bonding company meeting standards established by the public body. The public body shall accept a
bond meeting these requirements unless the public body can
demonstrate good cause for refusing to accept it. This bond
and any proceeds therefrom are subject to all claims and liens
and in the same manner and priority as set forth for retained
percentages in this chapter. The public body shall release the
bonded portion of the retained funds to the contractor within
thirty days of accepting the bond from the contractor. Whenever a public body accepts a bond in lieu of retained funds
from a contractor, the contractor shall accept like bonds from
any subcontractors or suppliers from which the contractor has
retained funds. The contractor shall then release the funds
retained from the subcontractor or supplier to the subcontractor or supplier within thirty days of accepting the bond from
the subcontractor or supplier.
(7) If the public body administering a contract, after a
substantial portion of the work has been completed, finds that
an unreasonable delay will occur in the completion of the
remaining portion of the contract for any reason not the result
of a breach thereof, it may, if the contractor agrees, delete
from the contract the remaining work and accept as final the
improvement at the stage of completion then attained and
[Title 60 RCW—page 24]
make payment in proportion to the amount of the work
accomplished and in this case any amounts retained and
accumulated under this section shall be held for a period of
sixty days following the completion. In the event that the
work is terminated before final completion as provided in this
section, the public body may thereafter enter into a new contract with the same contractor to perform the remaining work
or improvement for an amount equal to or less than the cost
of the remaining work as was provided for in the original
contract without advertisement or bid. The provisions of this
chapter are exclusive and shall supersede all provisions and
regulations in conflict herewith.
(8) Whenever the department of transportation has contracted for the construction of two or more ferry vessels, sixty
days after completion of all contract work on each ferry vessel, the department must release and pay in full the amounts
retained in connection with the construction of the vessel
subject to the provisions of RCW 60.28.020 and chapter
39.12 RCW. However, the department of transportation may
at its discretion condition the release of funds retained in connection with the completed ferry upon the contractor delivering a good and sufficient bond with two or more sureties, or
with a surety company, in the amount of the retained funds to
be released to the contractor, conditioned that no taxes shall
be certified or claims filed for work on the ferry after a period
of sixty days following completion of the ferry; and if taxes
are certified or claims filed, recovery may be had on the bond
by the department of revenue and the materialmen and laborers filing claims.
(9) Except as provided in subsection (1) of this section,
reservation by a public body for any purpose from the moneys earned by a contractor by fulfilling its responsibilities
under public improvement contracts is prohibited.
(10) Contracts on projects funded in whole or in part by
farmers home administration and subject to farmers home
administration regulations are not subject to subsections (1)
through (9) of this section.
(11) This subsection applies only to a public body that
has contracted for the construction of a facility using the general contractor/construction manager procedure, as defined
under RCW 39.10.061. If the work performed by a subcontractor on the project has been completed within the first half
of the time provided in the general contractor/construction
manager contract for completing the work, the public body
may accept the completion of the subcontract. The public
body must give public notice of this acceptance. After a
forty-five day period for giving notice of liens, and compliance with the retainage release procedures in RCW
60.28.021, the public body may release that portion of the
retained funds associated with the subcontract. Claims
against the retained funds after the forty-five day period are
not valid.
(12) Unless the context clearly requires otherwise, the
definitions in this subsection apply throughout this section.
(a) "Contract retainage" means an amount reserved by a
public body from the moneys earned by a person under a public improvement contract.
(b) "Person" means a person or persons, mechanic, subcontractor, or materialperson who performs labor or provides
materials for a public improvement contract, and any other
(2004 Ed.)
Lien for Labor, Materials, Taxes on Public Works
person who supplies the person with provisions or supplies
for the carrying on of a public improvement contract.
(c) "Public body" means the state, or a county, city,
town, district, board, or other public body.
(d) "Public improvement contract" means a contract for
public improvements or work, other than for professional services, or a work order as defined in RCW 39.10.020. [2003 c
301 § 7; 2000 c 185 § 1; 1994 c 101 § 1; 1992 c 223 § 2.]
Effective date—1992 c 223: See note following RCW 39.76.011.
Waiver of rights, construction—Application—1992 c 223: See
RCW 39.04.900 and 39.04.901.
60.28.015
60.28.015 Recovery from retained percentage—
Written notice to contractor of materials furnished.
Every person, firm, or corporation furnishing materials, supplies, or equipment to be used in the construction, performance, carrying on, prosecution, or doing of any work for the
state, or any county, city, town, district, municipality, or
other public body, shall give to the contractor of the work a
notice in writing, which notice shall cover the material, supplies, or equipment furnished or leased during the sixty days
preceding the giving of such notice as well as all subsequent
materials, supplies, or equipment furnished or leased, stating
in substance and effect that such person, firm, or corporation
is and/or has furnished materials and supplies, or equipment
for use thereon, with the name of the subcontractor ordering
the same, and that a lien against the retained percentage may
be claimed for all materials and supplies, or equipment furnished by such person, firm, or corporation for use thereon,
which notice shall be given by (1) mailing the same by registered or certified mail in an envelope addressed to the contractor, or (2) by serving the same personally upon the contractor or the contractor's representative and obtaining evidence of such service in the form of a receipt or other
acknowledgement signed by the contractor or the contractor's
representative, and no suit or action shall be maintained in
any court against the retained percentage to recover for such
material, supplies, or equipment or any part thereof unless the
provisions of this section have been complied with. [1986 c
314 § 5.]
60.28.020
60.28.020 Excess over lien claims to contractor. After
the expiration of the thirty day period, and after receipt of the
department of revenue's certificate, and the public body is
satisfied that the taxes certified as due or to become due by
the department of revenue are discharged, and the claims of
materialmen and laborers who have filed their claims,
together with a sum sufficient to defray the cost of foreclosing the liens of such claims, and to pay attorneys' fees, have
been paid, the public body shall pay to the contractor the fund
retained by it or release to the contractor the securities and
bonds held in escrow.
If such taxes have not been discharged or the claims,
expenses, and fees have not been paid, the public body shall
either retain in its fund, or in an interest bearing account, or
retain in escrow, at the option of the contractor, an amount
equal to such unpaid taxes and unpaid claims together with a
sum sufficient to defray the costs and attorney fees incurred
in foreclosing the lien of such claims, and shall pay, or
release from escrow, the remainder to the contractor. [1975
(2004 Ed.)
60.28.030
1st ex.s. c 104 § 2; 1970 ex.s. c 38 § 2; 1967 ex.s. c 26 § 23;
1955 c 236 § 2; 1921 c 166 § 2; RRS § 10321.]
Application—1992 c 223: See RCW 39.04.901.
Effective date—1967 ex.s. c 26: See note following RCW 82.01.050.
60.28.021
60.28.021 Excess over lien claims paid to contractor.
After the expiration of the forty-five day period for giving
notice of lien provided in RCW 60.28.011(2), and after
receipt of the department of revenue's certificate, and the
public body is satisfied that the taxes certified as due or to
become due by the department of revenue are discharged, and
the claims of materialmen and laborers who have filed their
claims, together with a sum sufficient to defray the cost of
foreclosing the liens of such claims, and to pay attorneys'
fees, have been paid, the public body may withhold from the
remaining retained amounts for claims the public body may
have against the contractor and shall pay the balance, if any,
to the contractor the fund retained by it or release to the contractor the securities and bonds held in escrow.
If such taxes have not been discharged or the claims,
expenses, and fees have not been paid, the public body shall
either retain in its fund, or in an interest bearing account, or
retain in escrow, at the option of the contractor, an amount
equal to such unpaid taxes and unpaid claims together with a
sum sufficient to defray the costs and attorney fees incurred
in foreclosing the lien of such claims, and shall pay, or
release from escrow, the remainder to the contractor. [1992 c
223 § 3.]
Effective date—1992 c 223: See note following RCW 39.76.011.
Waiver of rights, construction—Application—1992 c 223: See
RCW 39.04.900 and 39.04.901.
60.28.030
60.28.030 Foreclosure of lien—Limitation of
action—Release of funds. Any person, firm, or corporation
filing a claim against the reserve fund shall have four months
from the time of the filing thereof in which to bring an action
to foreclose the lien. The lien shall be enforced by action in
the superior court of the county where filed, and shall be governed by the laws regulating the proceedings in civil actions
touching the mode and manner of trial and the proceedings
and laws to secure property so as to hold it for the satisfaction
of any lien against it: PROVIDED, That the public body
shall not be required to make any detailed answer to any complaint or other pleading but need only certify to the court the
name of the contractor; the work contracted to be done; the
date of the contract; the date of completion and final acceptance of the work; the amount retained; the amount of taxes
certified due or to become due to the state; and all claims filed
with it showing respectively the dates of filing, the names of
claimants, and amounts claimed. Such certification shall
operate to arrest payment of so much of the funds retained as
is required to discharge the taxes certified due or to become
due and the claims filed in accordance with this chapter. In
any action brought to enforce the lien, the claimant, if he prevails, is entitled to recover, in addition to all other costs, attorney fees in such sum as the court finds reasonable. If a claimant fails to bring action to foreclose his lien within the four
months period, the reserve fund shall be discharged from the
lien of his claim and the funds shall be paid to the contractor.
The four months limitation shall not, however, be construed
[Title 60 RCW—page 25]
60.28.040
Title 60 RCW: Liens
as a limitation upon the right to sue the contractor or his
surety where no right of foreclosure is sought against the
fund. [1979 ex.s. c 38 § 1; 1955 c 236 § 3; 1927 c 241 § 1;
1921 c 166 § 3; RRS § 10322.]
lectible without recourse to the state's lien on the retained percentage. [1992 c 223 § 4.]
Effective date—1992 c 223: See note following RCW 39.76.011.
Waiver of rights, construction—Application—1992 c 223: See
RCW 39.04.900 and 39.04.901.
60.28.040
60.28.040 Tax liens—Priority of liens. The amount of
all taxes, increases and penalties due or to become due under
Title 82 RCW, from a contractor or the contractor's successors or assignees with respect to a public improvement contract wherein the contract price is twenty thousand dollars or
more shall be a lien prior to all other liens upon the amount of
the retained percentage withheld by the disbursing officer
under such contract, except that the employees of a contractor
or the contractor's successors or assignees who have not been
paid the prevailing wage under such a public improvement
contract shall have a first priority lien against the bond or
retainage prior to all other liens. The amount of all other
taxes, increases and penalties due and owing from the contractor shall be a lien upon the balance of such retained percentage remaining in the possession of the disbursing officer
after all other statutory lien claims have been paid. [1985 c
80 § 1; 1971 ex.s. c 299 § 1; 1955 c 236 § 4. Prior: 1949 c 228
§ 27, part; Rem. Supp. 1949 § 8370-204a, part; RCW
82.32.250, part.]
Severability—Effective dates—1971 ex.s. c 299: See notes following
RCW 82.04.050.
60.28.050
60.28.050 Duties of disbursing officer upon final
acceptance of contract. Upon final acceptance of a contract,
the state, county or other municipal officer charged with the
duty of disbursing or authorizing disbursement or payment of
such contracts shall forthwith notify the department of revenue of the completion of contracts over twenty thousand dollars. Such officer shall not make any payment from the
retained percentage fund or release any retained percentage
escrow account to any person, until he has received from the
department of revenue a certificate that all taxes, increases
and penalties due from the contractor, and all taxes due and to
become due with respect to such contract have been paid in
full or that they are, in the department's opinion, readily collectible without recourse to the state's lien on the retained percentage. [1982 c 170 § 2; 1970 ex.s. c 38 § 3; 1967 ex.s. c 26
§ 24; 1955 c 236 § 5. Prior: 1949 c 228 § 27, part; Rem.
Supp. 1949 § 8370-204a, part; RCW 82.32.250, part.]
Application—1992 c 223: See RCW 39.04.901.
Effective date—1967 ex.s. c 26: See note following RCW 82.01.050.
60.28.051
60.28.051 Duties of disbursing officer upon completion of contract. Upon completion of a contract, the state,
county or other municipal officer charged with the duty of
disbursing or authorizing disbursement or payment of such
contracts shall forthwith notify the department of revenue of
the completion of contracts over twenty thousand dollars.
Such officer shall not make any payment from the retained
percentage fund or release any retained percentage escrow
account to any person, until he has received from the department of revenue a certificate that all taxes, increases and penalties due from the contractor, and all taxes due and to
become due with respect to such contract have been paid in
full or that they are, in the department's opinion, readily col[Title 60 RCW—page 26]
60.28.060
60.28.060 Duties of disbursing officer upon final
acceptance of contract—Payments to department of revenue. If within thirty days after receipt of notice by the department of revenue of the completion of the contract, the amount
of all taxes, increases and penalties due from the contractor or
any of his successors or assignees or to become due with
respect to such contract have not been paid, the department of
revenue may certify to the disbursing officer the amount of
all taxes, increases and penalties due from the contractor,
together with the amount of all taxes due and to become due
with respect to the contract and may request payment thereof
to the department of revenue in accordance with the priority
provided by this chapter. The disbursing officer shall within
ten days after receipt of such certificate and request pay to the
department of revenue the amount of all taxes, increases and
penalties certified to be due or to become due with respect to
the particular contract, and, after payment of all claims which
by statute are a lien upon the retained percentage withheld by
the disbursing officer, shall pay to the department of revenue
the balance, if any, or so much thereof as shall be necessary
to satisfy the claim of the department of revenue for the balance of all taxes, increases or penalties shown to be due by
the certificate of the department of revenue. If the contractor
owes no taxes imposed pursuant to Title 82 RCW, the department of revenue shall so certify to the disbursing officer.
[1967 ex.s. c 26 § 25; 1955 c 236 § 6. Prior: 1949 c 228 § 27,
part; Rem. Supp. 1949 § 8370-204a, part; RCW 82.32.250,
part.]
Effective date—1967 ex.s. c 26: See note following RCW 82.01.050.
60.28.080
60.28.080 Delay due to litigation—Change order or
force account directive—Costs—Arbitration—Termination. (1) If any delay in issuance of notice to proceed or in
construction following an award of any public construction
contract is primarily caused by acts or omissions of persons
or agencies other than the contractor and a preliminary, special or permanent restraining order of a court of competent
jurisdiction is issued pursuant to litigation and the appropriate public contracting body does not elect to delete the completion of the contract as provided by *RCW 60.28.010(3),
the appropriate contracting body will issue a change order or
force account directive to cover reasonable costs incurred by
the contractor as a result of such delay. These costs shall
include but not be limited to contractor's costs for wages,
labor costs other than wages, wage taxes, materials, equipment rentals, insurance, bonds, professional fees, and subcontracts, attributable to such delay plus a reasonable sum for
overhead and profit.
In the event of a dispute between the contracting body
and the contractor, arbitration procedures may be commenced under the applicable terms of the construction contract, or, if the contract contains no such provision for arbitration, under the then obtaining rules of the American Arbitration Association.
(2004 Ed.)
Labor Liens on Franchises, Earnings, and Property of Certain Companies
If the delay caused by litigation exceeds six months, the
contractor may then elect to terminate the contract and to
delete the completion of the contract and receive payment in
proportion to the amount of the work completed plus the cost
of the delay. Amounts retained and accumulated under RCW
60.28.010 shall be held for a period of thirty days following
the election of the contractor to terminate. Election not to terminate the contract by the contractor shall not affect the accumulation of costs incurred as a result of the delay provided
above.
(2) This section shall not apply to any contract awarded
pursuant to an invitation for bid issued on or before July 16,
1973. [1982 c 170 § 3; 1973 1st ex.s. c 62 § 3.]
*Reviser's note: RCW 60.28.010 was amended by 1982 c 170 § 1,
changing subsection (3) to subsection (5).
Severability—1973 1st ex.s. c 62: See note following RCW 39.04.120.
Change orders due to environmental protection requirements, costs: RCW
39.04.120.
60.28.900
60.28.900 Severability—1955 c 236. If any section,
provision or part of this chapter shall be adjudged to be
invalid or unconstitutional, such adjudication shall not affect
the validity of this chapter as a whole or any section, provision or part hereof not adjudged invalid or unconstitutional.
[1955 c 236 § 8.]
Chapter 60.32 RCW
LABOR LIENS ON FRANCHISES, EARNINGS, AND
PROPERTY OF CERTAIN COMPANIES
Chapter 60.32
Sections
60.32.010
60.32.020
60.32.030
60.32.040
60.32.050
60.32.010
60.32.010 Liens authorized. Every person performing
labor for any person, company or corporation, in the operation of any railway, canal or transportation company, or any
water, mining or manufacturing company, sawmill, lumber
or timber company, shall have a prior lien on the franchise,
earnings, and on all the real and personal property of said person, company or corporation, which is used in the operation
of its business, to the extent of the moneys due him from such
person, company or corporation, operating said franchise or
business, for labor performed within six months next preceding the filing of his claim therefor, as hereinafter provided;
and no mortgage, deed of trust or conveyance shall defeat or
take precedence over said lien. [1897 c 43 § 1; RRS § 1149.]
60.32.020
60.32.020 Notice of lien—Contents—Filing and serving. No person shall be entitled to the lien given by RCW
60.32.010, unless he shall, within ninety days after he has
ceased to perform labor for such person, company or corporation, filed for record with the county auditor of the county
in which said labor was performed, or in which is located the
principal office of such person, company or corporation in
this state, a notice of claim, containing a statement of his
demand, after deducting all just credits and offsets, the name
of the person, company or corporation, and the name of the
(2004 Ed.)
person or persons employing claimant, if known, with the
statement of the terms and conditions of his contract, if any,
and the time he commenced the employment, and the date of
his last service, and shall serve a copy thereof on said person,
company or corporation within thirty days after the same is so
filed for record.
Any number of claimants may join in the same notice for
the purpose of filing and enforcing their liens, but the amount
claimed by each claimant shall be separately stated. [1977
ex.s. c 176 § 1; 1897 c 43 § 2; RRS § 1150.]
60.32.030
60.32.030 Manner of serving notice. Service of notice,
as herein required, may be made in the same manner as summons in civil actions. [1897 c 43 § 3; RRS § 1151.]
Service of summons in civil actions: RCW 4.28.080.
60.32.040
60.32.040 Manner of enforcing liens. Any such lien
may be enforced within the same time and in the same manner as mechanics' liens are foreclosed. [1897 c 43 § 4; RRS
§ 1152.]
60.32.050
60.32.050 Receiver or assignee to pay claims first.
Whenever a receiver or assignee is appointed for any person,
company or corporation, the court shall require such receiver
or assignee to pay all claims for which a lien could be filed
under this chapter, before the payment of any other debts or
claims, other than operating expenses. [1897 c 43 § 5; RRS §
1153.]
Chapter 60.34
Liens authorized.
Notice of lien—Contents—Filing and serving.
Manner of serving notice.
Manner of enforcing liens.
Receiver or assignee to pay claims first.
60.34.020
Chapter 60.34 RCW
LIEN OF RESTAURANT, HOTEL,
TAVERN, ETC., EMPLOYEES
Sections
60.34.010
60.34.020
60.34.030
60.34.040
60.34.050
Liens authorized.
Notice of lien—Contents—Filing and serving.
Manner of serving notice.
Manner of enforcing liens—Costs.
Priority of lien.
60.34.010
60.34.010 Liens authorized. Every person performing
labor in the operation of any restaurant, hotel, tavern, or other
place of business engaged in the selling of prepared foods or
drinks, or any hotel service employee, shall have a lien on the
earnings and on all the property of his employer used in the
operation of said business to the extent of the moneys due
him for labor performed within three months next preceding
the filing of his claim therefor. [1953 c 205 § 1.]
60.34.020
60.34.020 Notice of lien—Contents—Filing and serving. The lien claimant shall within thirty days after he has
ceased to perform such labor, file for record with the auditor
of the county in which the labor was performed a notice of
claim, containing a statement of his demand, the name of the
employer and the name of the person employing him, if
known, with a statement of the terms and conditions of his
contract, if any, and the time he commenced the employment,
and the date of his last service, and shall serve or mail a copy
thereof to said employer within said period. [1953 c 205 § 2.]
[Title 60 RCW—page 27]
60.34.030
Title 60 RCW: Liens
60.34.030 Manner of serving notice. Service of the
notice of claim may be made in the same manner as summons
in civil actions. [1953 c 205 § 3.]
60.34.030
Service of summons in civil actions: RCW 4.28.080.
60.34.040
60.34.040 Manner of enforcing liens—Costs. The lien
may be enforced within the same time and in the same manner as mechanics' liens are foreclosed, when said lien is upon
real property, or in the same manner as provided in chapter
60.10 RCW when the lien is upon personal property. The
court may allow as part of the costs of the action the money
paid for filing or recording the claim and a reasonable attorney fee. [1995 c 62 § 8; 1969 c 82 § 12; 1959 c 173 § 1; 1953
c 205 § 4.]
60.34.050
60.34.050 Priority of lien. The lien created herein shall
be preferred to any encumbrance which may attach after the
commencement of the labor and is also preferred to any
encumbrance which may have attached previously to that
time, but which was not filed or recorded so as to create constructive notice thereof prior to that time, and of which the
lien claimant had no notice. [1953 c 205 § 5.]
Chapter 60.36
Chapter 60.36 RCW
LIEN ON VESSELS AND EQUIPMENT
Sections
60.36.010
60.36.020
60.36.030
60.36.040
60.36.050
60.36.060
Liens created.
Actions to enforce liens.
Liens for handling cargo.
Liens for handling cargo—Priority.
Liens for handling cargo—Foreclosure.
Lien for breach of contract for towing, dunnaging, stevedoring, etc.
60.36.010 Liens created. All steamers, vessels and
boats, their tackle, apparel and furniture, are liable—
(1) For service rendered on board at the request of, or
under contract with their respective owners, charterers, masters, agents or consignees.
(2) For work done or material furnished in this state for
their construction, repair or equipment at the request of their
respective owners, charterers, masters, agents, consignees,
contractors, subcontractors, or other person or persons having
charge in whole or in part of their construction, alteration,
repair or equipment; and every contractor, builder or person
having charge, either in whole or in part, of the construction,
alteration, repair or equipment of any steamer, vessel or boat,
shall be held to be the agent of the owner for the purposes of
RCW 60.36.010 and 60.36.020, and for supplies furnished in
this state for their use, at the request of their respective owners, charterers, masters, agents or consignees, and any person
having charge, either in whole or in part, of the purchasing of
supplies for the use of any such steamer, vessel or boat, shall
be held to be the agent of the owner for the purposes of RCW
60.36.010 and 60.36.020.
(3) For their wharfage and anchorage within this state.
(4) For nonperformance or malperformance of any contract for the transportation of persons or property between
places within this state, or to or from places within this state,
made by their respective owners, masters, agents or consignees.
60.36.010
[Title 60 RCW—page 28]
(5) For injuries committed by them to persons or property within this state, or while transporting such persons or
property to or from this state. Demands for these several
causes constitute liens upon all steamers, vessels and boats,
and their tackle, apparel and furniture, and have priority in
the order of the subdivisions hereinbefore enumerated, and
have preference over all other demands; but such liens continue in force only for a period of three years from the time
the cause of action accrued. [1901 c 24 § 1; Code 1881 §
1939; 1877 p 216 § 1; RRS § 1182. Prior: 1858 p 29 § 1.]
Lien of pilot for pilotage compensation: RCW 88.16.140.
60.36.020
60.36.020 Actions to enforce liens. Such liens may be
enforced, in all cases of maritime contracts or service, by a
suit in admiralty, in rem, and the law regulating proceedings
in admiralty shall govern in all such suits; and in all cases of
contracts or service not maritime, by a civil action in any
superior court of this state as provided in RCW 60.10.023.
[1995 c 62 § 9; 1969 c 82 § 19; Code 1881 § 1940; 1877 p
216 § 2; RRS § 1183.]
60.36.030
60.36.030 Liens for handling cargo. All steamers, vessels and boats, their tackle, apparel and furniture shall be held
liable at all ports and places within this state or within the
jurisdiction of the courts of this state or within the jurisdiction
of the courts of the United States in said state for services rendered by stevedores, longshoremen or others engaged in the
loading, unloading, stowing or dunnaging of cargo in or from
any steamer, vessel or boat in any harbor or at any other place
within said state, or within the jurisdiction of the courts
thereof as above stated, and said steamers, vessels and boats
shall further be liable as per their contracts for all services
performed upon wharfs or landing places by stevedores,
longshoremen or others: PROVIDED, That such services
must have been so performed in and about and be connected
with the loading, unloading, dunnaging or stowing of said
cargo. [1901 c 75 § 1; RRS § 1184.]
60.36.040
60.36.040 Liens for handling cargo—Priority.
Demands for wages and all sums due under contracts or otherwise for the performance of all or any of the services mentioned in RCW 60.36.030 shall constitute liens upon all
steamers, vessels and boats, their tackle, apparel and furniture, and shall have priority over all other demands save and
excepting the demands mentioned in RCW 60.36.010 (1), (2)
and (3), to which said demands the lien hereby provided shall
be subordinate: PROVIDED, That such liens shall only continue in force for the period of three years from the date when
such work was done or the last services performed by such
stevedores, longshoremen or others. [1901 c 75 § 2; RRS §
1185.]
60.36.050
60.36.050 Liens for handling cargo—Foreclosure.
The liens hereby created may be foreclosed as provided in
RCW 60.10.023. [1995 c 62 § 10; 1969 c 82 § 13; 1901 c 75
§ 3; RRS § 1186.]
60.36.060
60.36.060 Lien for breach of contract for towing,
dunnaging, stevedoring, etc. Whenever the owner, charterer, or any person or corporation operating, managing or
(2004 Ed.)
Lien for Attorney’s Fees
controlling any steamship, vessel or boat shall wilfully fail,
neglect or refuse to carry out or perform any express contract
or portion thereof for the towing, loading, unloading, dunnaging or stevedoring of such steamship, vessel or boat, any person or persons, firm or corporation sustaining thereby any
loss or damage which is capable of definite ascertainment
shall have a lien upon such steamship, vessel or boat for said
loss or damage. The rank and priority of the lien hereby created and the manner of its enforcement shall be fixed, controlled and regulated by the provisions of the existing law
pertaining to liens for similar services already performed.
[1903 c 149 § 1; RRS § 1187.]
Chapter 60.40
Chapter 60.40 RCW
LIEN FOR ATTORNEY'S FEES
Sections
60.40.010
60.40.020
60.40.030
Lien created—Enforcement—Definition—Exception.
Proceedings to compel delivery of money or papers.
Procedure when lien is claimed.
Rules of court: Return of files of disbarred or suspended attorney—RLD
8.1.
60.40.010
60.40.010 Lien created—Enforcement—Definition—
Exception. (1) An attorney has a lien for his or her compensation, whether specially agreed upon or implied, as hereinafter provided:
(a) Upon the papers of the client, which have come into
the attorney's possession in the course of his or her professional employment;
(b) Upon money in the attorney's hands belonging to the
client;
(c) Upon money in the hands of the adverse party in an
action or proceeding, in which the attorney was employed,
from the time of giving notice of the lien to that party;
(d) Upon an action, including one pursued by arbitration
or mediation, and its proceeds after the commencement
thereof to the extent of the value of any services performed
by the attorney in the action, or if the services were rendered
under a special agreement, for the sum due under such agreement; and
(e) Upon a judgment to the extent of the value of any services performed by the attorney in the action, or if the services were rendered under a special agreement, for the sum
due under such agreement, from the time of filing notice of
such lien or claim with the clerk of the court in which such
judgment is entered, which notice must be filed with the
papers in the action in which such judgment was rendered,
and an entry made in the execution docket, showing name of
claimant, amount claimed and date of filing notice.
(2) Attorneys have the same right and power over actions
to enforce their liens under subsection (1)(d) of this section
and over judgments to enforce their liens under subsection
(1)(e) of this section as their clients have for the amount due
thereon to them.
(3) The lien created by subsection (1)(d) of this section
upon an action and proceeds and the lien created by subsection (1)(e) of this section upon a judgment for money is superior to all other liens.
(4) The lien created by subsection (1)(d) of this section is
not affected by settlement between the parties to the action
(2004 Ed.)
Chapter 60.42
until the lien of the attorney for fees based thereon is satisfied
in full.
(5) For the purposes of this section, "proceeds" means
any monetary sum received in the action. Once proceeds
come into the possession of a client, such as through payment
by an opposing party or another person or by distribution
from the attorney's trust account or registry of the court, the
term "proceeds" is limited to identifiable cash proceeds determined in accordance with RCW 62A.9A-315(b)(2). The
attorney's lien continues in such identifiable cash proceeds,
subject to the rights of a secured party under RCW 62A.9A327 or a transferee under RCW 62A.9A-332.
(6) Child support liens are exempt from this section.
[2004 c 73 § 2; Code 1881 § 3286; 1863 p 406 § 12; RRS §
136.]
Purpose—Intent—Application—2004 c 73: "The purpose of this act
is to end double taxation of attorneys' fees obtained through judgments and
settlements, whether paid by the client from the recovery or by the defendant
pursuant to a statute or a contract. Through this legislation, Washington law
clearly recognizes that attorneys have a property interest in their clients'
cases so that the attorney's fee portion of an award or settlement may be
taxed only once and against the attorney who actually receives the fee. This
statute should be liberally construed to effectuate its purpose. This act is curative and remedial, and intended to ensure that Washington residents do not
incur double taxation on attorneys' fees received in litigation and owed to
their attorneys. Thus, except for RCW 60.40.010(4), the statute is intended
to apply retroactively." [2004 c 73 § 1.]
60.40.020
60.40.020 Proceedings to compel delivery of money
or papers. When an attorney refuses to deliver over money
or papers, to a person from or for whom he has received them
in the course of professional employment, whether in an
action or not, he may be required by an order of the court in
which an action, if any, was prosecuted, or if no action was
prosecuted, then by order of any judge of a court of record, to
do so within a specified time, or show cause why he should
not be punished for a contempt. [Code 1881 § 3287; 1863 p
406 § 13; RRS § 137.]
60.40.030
60.40.030 Procedure when lien is claimed. If, however, the attorney claim a lien, upon the money or papers,
under the provisions of *this chapter, the court or judge may:
(1) Impose as a condition of making the order, that the client
give security in a form and amount to be directed, to satisfy
the lien, when determined in an action; (2) summarily to
inquire into the facts on which the claim of a lien is founded,
and determine the same; or (3) to refer it, and upon the report,
determine the same as in other cases. [Code 1881 § 3288;
1863 p 406 § 14; RRS § 138.]
*Reviser's note: "this chapter" appeared in section 3288, chapter 250
of the Code of 1881, the lien sections of which are codified as chapter 60.40
RCW.
Chapter 60.42 RCW
COMMERCIAL REAL ESTATE BROKER LIEN ACT
Chapter 60.42
Sections
60.42.005
60.42.010
60.42.020
60.42.030
60.42.040
Definitions.
Lien upon personal property—Effective date—Notice of
claim of lien—Waiver of lien rights—Court costs, attorneys'
fees, and statutory interest.
Disputed claim—Order to show cause—Hearing.
Lien on net rental proceeds—Order to show cause—Hearing.
Priority of lien claims.
[Title 60 RCW—page 29]
60.42.005
60.42.050
60.42.060
60.42.070
60.42.900
60.42.901
Title 60 RCW: Liens
Deposit made pending resolution of amounts due—Recording
of receipt—Release of notice of claim of lien.
County auditor or recorder—Duties—Fees.
Delivery of notice of claim of lien—Form—Time effective—
Address.
Application.
Short title.
60.42.005 Definitions. The definitions in this section
apply throughout this chapter unless the context clearly
requires otherwise.
(1) "Commercial real estate" means a fee title interest or
possessory estate in real property located in this state except
an interest in real property which is (a) improved with one
single-family residential unit or one multifamily structure
with four or less residential units, or (b) unimproved and the
maximum permitted development is one to four residential
units or structures under the county or city zoning ordinances
or comprehensive plan applicable to that real estate, or (c)
classified as farm and agricultural land or timber land for
assessment purposes pursuant to chapter 84.34 RCW, or (d)
improved with single-family residential units such as condominiums, townhouses, timeshares, or stand-alone houses in a
subdivision that may be legally sold, leased, or otherwise disposed of on a unit-by-unit basis. Real estate will be considered commercial real estate if the commission agreement so
provides, or if it meets the definition contained in this section
on the date of the disposition.
(2) "Commission agreement" means a written instrument
which meets the requirements of RCW 19.36.010 signed by
the owner, or by a party duly authorized to sign on behalf of
the owner, of commercial real estate, pursuant to which the
owner agrees to pay a broker a real estate commission upon
either the disposition or lease of commercial real estate or
upon entering into an agreement for disposition or lease of
commercial real estate. When a broker and owner execute
multiple versions of a commission agreement regarding the
same disposition of commercial real estate, the final written
version of the commission agreement, which incorporates the
final agreement between the broker and the owner, constitutes the "commission agreement" and shall be used to determine the amount of the lien created by this chapter.
(3) "Days" means calendar days. However, if a period
ends on a day other than a business day, then the last day shall
be the next business day.
(4) "Disposition" means a voluntary transfer or conveyance of commercial real estate.
(5) "Escrow closing agent" means the person or entity
who receives documents and funds for recording and disbursement in completing a transaction for the disposition of
commercial real estate.
(6) "Lease" means a written agreement which gives rise
to a relationship of landlord and tenant, affecting commercial
real estate, such that the holder of a fee simple interest or possessory estate in commercial real estate permits another to
possess the commercial real estate for a period, and which
meets the requirements of RCW 19.36.010, if applicable.
(7) "Net rental proceeds" means the base rent paid by the
tenant under a lease, less any amounts currently due under the
terms of liens which have priority over the lien created under
this chapter. Base rent is the rent so designated in a lease as
base rent, or a similar term, for the possession and use of the
commercial real estate, but does not include separate pay60.42.005
[Title 60 RCW—page 30]
ments made by tenants for insurance, taxes, utilities, or other
expenses.
(8) "Owner" means a person or entity which is vested in
record fee title or a possessory estate in commercial real
estate.
(9)(a) "Owner's net proceeds" means the gross sales proceeds from the disposition of the commercial real estate
described in a notice of claim of lien against proceeds pursuant to this chapter, less the following: (i) Amounts necessary
to pay all encumbrances and liens which have priority over
the lien created by this chapter other than those permitted to
remain by the buyer; (ii) owner's closing costs, such as real
estate excise tax, title insurance premiums, real estate tax and
assessment prorations, and escrow fees payable by the owner
pursuant to an agreement with the buyer; and (iii) amounts
held by a third party for use by the owner to complete an
exchange of real estate which is deferred from federal income
tax under section 1031 of the internal revenue code of 1986,
as amended.
(b) "Owner's net proceeds" shall include any gross sales
proceeds which are held by a third party for purposes of completing an exchange of real estate which is deferred from federal income tax under section 1031 of the internal revenue
code of 1986, as amended, but are subsequently not used for
that purpose. "Owner's net proceeds" are personal property,
upon which the lien created by this chapter attaches.
(10) "Real estate broker" or "broker" means the same as
defined in RCW 18.85.010.
(11) "Real property" means one or more parcels or tracts
of land, including appurtenances or improvements. [1997 c
315 § 1.]
60.42.010 Lien upon personal property—Effective
date—Notice of claim of lien—Waiver of lien rights—
Court costs, attorneys' fees, and statutory interest. (1)
The lien created under this chapter is a lien upon personal
property, not upon real property.
(2) A broker has a lien upon the owner's net proceeds
from the disposition of commercial real estate and a lien upon
the net rental proceeds from the lease of commercial real
estate in the amount which the owner has agreed to pay the
broker under a commission agreement. The lien under this
chapter is available only to the broker named in the commission agreement, and may not be assigned voluntarily or by
operation of law.
(3) Subject to the requirements of subsection (4) of this
section, the lien created by this chapter becomes effective on
the date of the recording of a notice of claim of lien upon proceeds pursuant to subsection (6) of this section, and is perfected by such recording. Recording must be made with the
county auditor or recorder in the county or counties in which
the commercial real estate is located.
(4) In the case of a disposition of commercial real estate,
the lien under this chapter is not effective unless it is recorded
at least thirty days prior to the date a deed conveying the commercial real estate is recorded in the office of the county auditor or recorder in the county or counties in which the commercial real estate is located. In the case of a lease of commercial real estate, the lien under this chapter is not effective
unless it is recorded within ninety days after the tenant takes
possession of the leased commercial real estate.
60.42.010
(2004 Ed.)
Commercial Real Estate Broker Lien Act
(5) The lien created by this chapter is null and void
unless, within ten days of recording its notice of claim of lien
against proceeds, the broker delivers a copy of the notice of
claim of lien against proceeds to the owner of the commercial
real estate in the manner provided in RCW 60.42.070. In the
case of the disposition of commercial real estate, on or before
the date the deed conveying the commercial real estate is
recorded, the broker shall deliver a copy of the notice of
claim of lien against proceeds to the escrow closing agent
closing the disposition in the manner provided in RCW
60.42.070, if the identity of the escrow closing agent is actually known by the broker.
(6) To be effective, the notice of claim of lien against
proceeds must state the following:
(a) The name, address, and telephone number of the broker;
(b) The date of the commission agreement;
(c) The name of the owner of the commercial real estate;
(d) The legal description of the commercial real estate as
described in the commission agreement;
(e) The amount for which the lien is claimed, which may
be stated in a dollar amount or may be stated in the form of a
formula for how the amount is to be determined such as a percentage of the sales price;
(f) The real estate license number of the broker; and
(g) That the lien claimant has read the claim, knows the
contents, and believes the same to be true and correct, and
that the claim is made pursuant to a valid commission agreement, and is not frivolous, under penalties of perjury.
A copy of the commission agreement must be attached to
the recorded notice of claim of lien against proceeds. The
notice of claim of lien against proceeds must recite that the
information contained in the notice of claim of lien against
proceeds is true and accurate to the knowledge of the signatory. The notice of claim of lien against proceeds must be
acknowledged pursuant to chapter 64.08 RCW. A notice of
claim of lien against proceeds substantially in the following
form is sufficient:
NOTICE OF CLAIM OF LIEN AGAINST PROCEEDS
PURSUANT TO CHAPTER 60.42 RCW
Notice is hereby given that the person named below
claims a lien as to owner's net proceeds or net rental proceeds,
but not real property, pursuant to chapter 60.42 RCW. In support of this lien, the following information is submitted:
1. Name, telephone number, and address of lien claimant: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
................................................
2. Washington state broker's license number of lien
claimant: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Date of the written commission agreement on which
this claim is based: . . . . . . . . . , a true and complete copy of
which is attached to this notice of claim of lien.
4. Name of the owner: . . . . . . . . . . . . . . . . . . . . . . . . . .
5. Legal description of the commercial real estate
described in the commission agreement: . . . . . . . . . . . . . . .
................................................
6. The amount for which the lien is claimed, which may
be stated in a dollar amount or may be stated in the form of a
formula for how the amount is to be determined such as a percentage of the sales price:
(2004 Ed.)
60.42.010
................................................
7. The undersigned lien claimant, being sworn, states: I
have read the foregoing claim, know the contents, and
believe the same to be true and correct, and the claim is made
pursuant to a valid commission agreement, and is not frivolous, under penalty of perjury.
..............................
Signature of lien claimant
..............................
Name, Street Address, City, State
of person signing
..............................
Telephone Number of person signing
State of Washington
County of . . . . . . . . . . . . .
)
) ss
)
..............................
Subscribed and sworn to, or affirmed, before me on
. . . by . . . .
(Seal or stamp)
..............................
Signature
..............................
Title
My appointment expires . . . . . . . . . .
(Add acknowledgment pursuant to chapter 64.08
RCW)
(7) Whenever a notice of claim of lien against proceeds
is recorded and a condition or event occurs, or fails to occur,
that would preclude the broker from receiving compensation
under the terms of the commission agreement, including the
filing of a notice of claim of lien against proceeds in a manner
which does not comply with this chapter, the broker shall
record, within seven days following demand by the owner, a
written release of the notice of claim of lien against proceeds.
(8) Whenever the amount claimed in a notice of claim of
lien against proceeds is paid to the lien claimant, the lien
claimant shall promptly record a satisfaction or release of the
notice of claim of lien against proceeds on written demand of
the owner no later than five days after receipt of payment. In
the case of a disposition of commercial real estate, the escrow
closing agent is required to pay to the lien claimant the
owner's net proceeds up to the amount claimed in the notice
of claim of lien against proceeds. If the amount claimed in the
notice of claim of lien against proceeds is to be fully or partially paid to the lien claimant by the escrow closing agent,
upon such disposition, then the lien claimant shall submit a
release of the notice of claim of lien against proceeds in the
amount of the owner's net proceeds or the amount of the lien,
whichever is smaller, to the escrow closing agent to be held
in escrow pending such disposition and payment. In a suit
brought by the owner to compel delivery of the release by the
lien claimant, if the court determines that the delay was
unjustified, the court shall, in addition to ordering the release
of the notice of claim of lien, award the costs of the action
including reasonable attorneys' fees to the prevailing party.
(9) An owner of commercial real estate may request that
a broker waive the rights to a lien under this chapter, and such
a waiver contained in the commission agreement signed by
[Title 60 RCW—page 31]
60.42.020
Title 60 RCW: Liens
the broker is effective to waive the broker's rights to a lien
under this chapter. In a suit filed by a broker to recover
amounts due under a commission agreement in which the
broker has waived lien rights under this chapter, if the court
finds that payment is due to the broker under the commission
agreement, the court, in addition to awarding normal damages, shall award to the broker court costs, reasonable attorneys' fees, and statutory interest, as provided in RCW
19.52.010, from the date the deed is recorded in the event of
a disposition, or from the date the tenant takes possession in
the event of a lease. [1997 c 315 § 2.]
60.42.020
60.42.020 Disputed claim—Order to show cause—
Hearing. (1) An owner of commercial real estate subject to
a recorded notice of claim of lien against proceeds under this
chapter, who disputes the broker's claim in the notice of claim
of lien against proceeds, may apply by motion to the superior
court for the county where the commercial real estate, or
some part thereof, is located for an order directing the broker
to appear before the court at a time no earlier than seven nor
later than fifteen days following the date of service of the
motion and order on the broker, to show cause as to why the
relief requested should not be granted. The motion must state
the grounds upon which relief is asked and must be supported
by the affidavit of the owner setting forth a concise statement
of the facts upon which the motion is based.
(2) The order to show cause must clearly state that if the
broker fails to appear at the time and place noted, the notice
of claim of lien against proceeds must be released, with prejudice, and the broker must be ordered to pay the costs
requested by the owner, including reasonable attorneys' fees.
(3) If, following a hearing on the matter, the court determines that the owner is not a party to an agreement which will
result in the owner being obligated to pay to the broker a
commission pursuant to the terms of a commission agreement, the court shall issue an order releasing the notice of
claim of lien against proceeds and awarding costs and reasonable attorneys' fees to the owner to be paid by the broker. If
the court determines that the owner is a party to an agreement
which will result in the owner being obligated to pay to the
broker a commission pursuant to the terms of a commission
agreement, the court shall issue an order so stating and
awarding costs and reasonable attorneys' fees to the broker, to
be paid by the owner. Such orders are final judgments.
(4) Proceedings under this section shall not affect other
rights and remedies available to the parties under this chapter
or otherwise. [1997 c 315 § 3.]
60.42.030
60.42.030 Lien on net rental proceeds—Order to
show cause—Hearing. (1) If a broker has a lien on net rental
proceeds pursuant to RCW 60.42.010(2), and the broker has
recorded a notice of claim of lien against proceeds and otherwise complied with the requirements of this chapter, the broker may apply by motion to the superior court for the county
where the commercial real estate, or some part thereof, is
located, for an order directing the owner to appear before the
court at a time no earlier than seven nor later than fifteen days
following the date of service of the motion and order on the
owner, and show cause as to why the relief requested should
not be granted. The motion must state the grounds upon
[Title 60 RCW—page 32]
which relief is asked, and must be supported by the affidavit
of the broker setting forth a concise statement of the facts
upon which the motion is based.
(2) The order to show cause must clearly state that if the
owner fails to appear at the time and place noted, the broker
shall be entitled to an order enjoining the owner from paying
the net rental proceeds from such lease to any party other than
the broker, and that the owner shall be ordered to pay the
costs requested by the broker, including reasonable attorneys'
fees.
(3) If, following a hearing on the matter, the court determines that the owner is, or was, a party to an agreement for
the lease of commercial real estate, which did or will result in
the owner being obligated to pay to the broker a commission
pursuant to the terms of a commission agreement, the court
shall issue an order enjoining the owner from paying the net
rental proceeds from such lease to any party other than the
broker. The court shall also order the owner to pay such net
rental proceeds to the broker and award costs and reasonable
attorneys' fees to the broker, to be paid by the owner. If the
court determines that the owner is not, or was not, a party to
an agreement for the lease of commercial real estate, which
did or will result in the owner being obligated to pay to the
broker a commission pursuant to the terms of a commission
agreement, the court shall issue an order so stating and
awarding costs and reasonable attorneys' fees to the owner, to
be paid by the broker. Such orders are final judgments.
(4) Proceedings under this section shall not affect other
rights and remedies available to the parties under this chapter
or otherwise. [1997 c 315 § 4.]
60.42.040
60.42.040 Priority of lien claims. All statutory liens,
consensual liens, mortgages, deeds of trust, assignments of
rents, and other encumbrances, including all advances or
charges made or accruing thereunder, whether voluntary or
obligatory, and all modifications, extensions, renewals, and
replacements thereof, recorded prior to the recording of a
notice of claim of lien against proceeds have priority over a
lien created under this chapter. A prior recorded lien includes,
without limitation, a valid materialmen's or mechanic's lien
claim that is recorded after the recording of the broker's
notice of claim of lien against proceeds but which relates
back to a date prior to the recording date of the broker's notice
of claim of lien against proceeds. [1997 c 315 § 5.]
60.42.050
60.42.050 Deposit made pending resolution of
amounts due—Recording of receipt—Release of notice of
claim of lien. A notice of claim of lien against proceeds
recorded under this chapter must be released without further
act, upon the recording of a receipt showing the deposit with
the superior court of the county in which the commercial real
estate, or some part thereof, is located, of an amount equal to
one and one-quarter times the amount of the lien claimed.
The receipt shall be recorded in the office in which the notice
of claim was recorded. The amount of the deposit in the superior court shall be held pending a resolution of amounts due
to the broker and the owner. [1997 c 315 § 6.]
60.42.060
60.42.060 County auditor or recorder—Duties—
Fees. The county auditor or recorder shall record the notice
(2004 Ed.)
Lien of Doctors, Nurses, Hospitals, Ambulance Services
of claim of lien against proceeds, and any release thereof, in
the same manner as deeds and other instruments of title are
recorded under chapter 65.08 RCW. Notices of claim of lien
against proceeds for registered land need not be recorded in
the Torrens register. The county auditor or recorder may not
charge a higher fee for recording a notice of claim of lien
against proceeds, or for a release thereof, than what the
county auditor or recorder charges for other documents.
[1997 c 315 § 7.]
60.42.070
60.42.070 Delivery of notice of claim of lien—Form—
Time effective—Address. Notices to be delivered to a party
under this chapter, other than service of process as required in
civil actions, shall be by service of process, or by registered
or certified mail, return receipt requested, or by personal or
electronic delivery and obtaining evidence of delivery in the
form of a receipt or other paper or electronic acknowledgment by the party to whom the notice is delivered or an affidavit of service. Delivery is effective at the time of personal
service, or personal or electronic delivery, or three days following deposit in the mail as required by this section. Notice
to a broker or owner may be given to the address of the broker
or owner that is contained in the commission agreement, or
such other address as is contained in a written notice from the
broker or owner to the party giving the notice. If no address is
provided in the commission agreement, the notice to the broker may be given to the broker's address of record with the
department of licensing pursuant to chapter 18.85 RCW and
notice to the owner may be given to the address of the commercial real estate. [1997 c 315 § 8.]
60.42.900
60.42.900 Application. This chapter applies to lien
claims based on a commission agreement entered into on, or
after, July 27, 1997. [1997 c 315 § 9.]
60.42.901
60.42.901 Short title. This chapter may be known and
cited as the commercial real estate broker lien act. [1997 c
315 § 10.]
Chapter 60.44 RCW
LIEN OF DOCTORS, NURSES, HOSPITALS,
AMBULANCE SERVICES
Chapter 60.44
Sections
60.44.010
60.44.020
60.44.030
60.44.040
60.44.050
60.44.060
Liens authorized.
Notice of lien—Contents—Filing.
Record of claims.
Taking note—Effect on lien.
Settlement of damages—Effect on lien.
Enforcement of lien—Payment as evidence.
Lien of department of social and health services for medical care of injured
recipient, payment of tort feasor or tort feasor's insurer does not discharge lien: RCW 74.09.180, 43.20B.040, and 43.20B.050.
Lien on funds withheld by employer from employee's pay: RCW 49.52.030
and 49.52.040.
60.44.010
60.44.010 Liens authorized. Every operator, whether
private or public, of an ambulance service or of a hospital,
and every duly licensed nurse, practitioner, physician, and
surgeon rendering service, or transportation and care, for any
person who has received a traumatic injury and which is rendered by reason thereof shall have a lien upon any claim,
(2004 Ed.)
60.44.050
right of action, and/or money to which such person is entitled
against any tort-feasor and/or insurer of such tort-feasor for
the value of such service, together with costs and such reasonable attorney's fees as the court may allow, incurred in
enforcing such lien: PROVIDED, HOWEVER, That nothing
in this chapter shall apply to any claim, right of action, or
money accruing under the workers' compensation act of the
state of Washington, and: PROVIDED, FURTHER, That all
the said liens for service rendered to any one person as a
result of any one accident or event shall not exceed twentyfive percent of the amount of an award, verdict, report, decision, decree, judgment, or settlement. [1987 c 185 § 36; 1975
1st ex.s. c 250 § 1; 1937 c 69 § 1; RRS § 1209-1.]
Intent—Severability—1987 c 185: See notes following RCW
51.12.130.
60.44.020
60.44.020 Notice of lien—Contents—Filing. No person shall be entitled to the lien given by RCW 60.44.010
unless such person shall, within twenty days after the date of
such injury or receipt of transportation or care, or, if settlement has not been accomplished and payment made to such
injured person, then at any time before such settlement and
payment, file for record with the county auditor of the county
in which said service was performed, a notice of claim stating
the name and address of the person claiming the lien and
whether such person claims as a practitioner, physician,
nurse, ambulance service, or hospital, the name and address
of the patient and place of domicile or residence, the time
when and place where the alleged fault or negligence of the
tort-feasor occurred, and the nature of the injury if any, the
name and address of the tort-feasor, if same or any thereof are
known, which claim shall be subscribed by the claimant and
verified before a person authorized to administer oaths.
[1975 1st ex.s. c 250 § 2; 1937 c 69 § 2; RRS § 1209-2.]
60.44.030
60.44.030 Record of claims. The county auditor shall
record the claims mentioned in this chapter, which record
must be indexed as deeds and other conveyances are required
by law to be indexed. [1999 c 233 § 6; 1937 c 69 § 3; RRS §
1209-4.]
Effective date—1999 c 233: See note following RCW 4.28.320.
60.44.040
60.44.040 Taking note—Effect on lien. The taking of
a promissory note or other evidence of indebtedness for any
services performed, as provided in this chapter, shall not discharge the lien therefor unless expressly received as a payment for such services and so specified therein. [1937 c 69 §
4; RRS § 1209-4.]
60.44.050
60.44.050 Settlement of damages—Effect on lien. No
settlement made by and between the patient and tort feasor
and/or insurer shall discharge the lien against any money due
or owing by such tort feasor or insurer to the patient or relieve
the tort feasor and/or insurer from liability by reason of such
lien unless such settlement also provides for the payment and
discharge of such lien or unless a written release or waiver of
any such claim of lien, signed by the claimant, be filed in the
court where any action has been commenced on such claim,
or in case no action has been commenced against the tort feasor and/or insurer, then such written release or waiver shall
[Title 60 RCW—page 33]
60.44.060
Title 60 RCW: Liens
be delivered to the tort feasor and/or insurer. [1937 c 69 § 5;
RRS § 1209-5.]
60.44.060
60.44.060 Enforcement of lien—Payment as evidence. Such lien may be enforced by a suit at law brought by
the claimant or his assignee within one year after the filing of
such lien against the said tort feasor and/or insurer. In the
event that such tort feasor and/or insurer shall have made
payment or settlement on account of such injury, the fact of
such payment shall only for the purpose of such suit be prima
facie evidence of the negligence of the tort feasor and of the
liability of the payer to compensate for such negligence.
[1937 c 69 § 6; RRS § 1209-6.]
Chapter 60.45 RCW
LIEN OF DEPARTMENT OF SOCIAL AND HEALTH
SERVICES FOR MEDICAL CARE FURNISHED
INJURED RECIPIENT
Chapter 60.45
Sections
60.45.010
Medical care to injured recipient—Recovery of cost against
tort feasor or tort feasor's insurer—Lien created, filing—
Payment to recipient does not discharge lien.
60.45.010
60.45.010 Medical care to injured recipient—Recovery of cost against tort feasor or tort feasor's insurer—
Lien created, filing—Payment to recipient does not discharge lien. See RCW 74.09.180, 43.20B.040, and
43.20B.050.
Chapter 60.52
Chapter 60.52 RCW
LIEN FOR SERVICES OF SIRES
Sections
60.52.010
60.52.020
60.52.030
60.52.035
60.52.040
60.52.050
Liens authorized—Filing statement.
Auditor's certificate—Contents—Posting.
Statement of lien—Filing—Duration of lien.
Delivery of semen by artificial insemination procedures—
Lien upon female or offspring—No filing—Duration of
lien—Statement of account.
Foreclosure of lien.
Auditor's fees.
60.52.010
60.52.010 Liens authorized—Filing statement. In
order to secure to the owner or owners of sires payment for
service, the following provisions are enacted: That every
owner of a sire having a service fee, in order to have a lien
upon the female served, and upon the get of any such sire,
under the provisions of this chapter, for such service, shall
file for record with the county auditor of the county where
said sire is kept for service a statement, verified by oath or
affirmation, to the best of his knowledge and belief, giving
the name, age, description and pedigree, as well as the terms
and conditions upon which such sire is advertised for service:
PROVIDED, That owners of sires who are not in possession
of pedigrees for such sires shall not be debarred from the benefits of this chapter. [1890 p 451 § 1; RRS § 3056.]
60.52.020
60.52.020 Auditor's certificate—Contents—Posting. The county auditor, upon the receipt of the statement as
specified in RCW 60.52.010, duly verified by affidavit, shall
issue a certificate to the owner or owners of said sire, which
[Title 60 RCW—page 34]
shall be posted by the owner in a conspicuous place where
said sire may be stationed, which certificate shall state the
name, age, description, pedigree and ownership of such sire,
the terms and conditions upon which the said sire is advertised for service, and that the provisions of this chapter, so far
as relates to the filing of the statement aforesaid, has been
complied with. [1890 p 451 § 2; RRS § 3057.]
60.52.030
60.52.030 Statement of lien—Filing—Duration of
lien. The owner or owners of any such sire receiving such
certificate, by complying with RCW 60.52.010 and
60.52.020, shall obtain and have a lien upon the female
served for the period of eighteen months from the date of service, or upon the get of any such sire for the period of one
year from the date of birth of such get: PROVIDED, Said
owner or owners shall file for record a statement of account,
verified by affidavit, with the county auditor of the county
wherein the service has been rendered, of the amount due
such owner or owners for said service, together with a
description of the female served, within ten months from the
date of service or date of birth, as the case may be: PROVIDED FURTHER, That the lien upon the get of any such
sire shall be a preferred lien: AND PROVIDED FURTHER,
That no sale or transfer of any female animal served shall
defeat the right of such lien holder. [1998 c 99 § 1; 1913 c 53
§ 1; 1890 p 451 § 3; RRS § 3058.]
Effective date—1998 c 99: "This act takes effect July 1, 1998." [1998
c 99 § 3.]
60.52.035
60.52.035 Delivery of semen by artificial insemination procedures—Lien upon female or offspring—No filing—Duration of lien—Statement of account. When an
owner of a sire, or an owner of semen from sires, provides,
for the insemination of a female, reproductively viable semen
from the sire, the owner of the sire, or the owner of the semen,
without satisfying the requirements of RCW 60.52.010 and
60.52.020, upon delivery of the semen by artificial insemination procedures, obtains and has a lien upon the female to
which the semen is delivered by artificial insemination procedures, or a lien upon the offspring of that female as the result
of delivery of the semen by artificial insemination procedures. The lien upon the female survives for eighteen months
from the date of the insemination procedure; the lien upon the
offspring survives for one year from the date of birth of the
resulting offspring. However, the owner of the sire, or the
owner of the semen, must, within ten months of the date of
the insemination procedure or the date of birth, file for
record, with the county auditor of the county where the
insemination procedure was rendered, a statement of account,
verified by affidavit, indicating the amount due to the owner
for the reproductively viable semen, along with a description
of the female or the name and address of the person for whom
the procedure was provided. The lien, whether upon the
female or upon the offspring, is a preferred lien. Sale or transfer of the inseminated female or of the offspring does not
defeat the right of the lien holder. [1998 c 99 § 2.]
Effective date—1998 c 99: See note following RCW 60.52.030.
(2004 Ed.)
Agister and Trainer Liens
60.52.040 Foreclosure of lien. Liens under this chapter
may be foreclosed as provided in chapter 60.10 RCW. [1995
c 62 § 11; 1969 c 82 § 14; 1890 p 452 § 4; RRS § 3059.]
60.52.040
60.52.050 Auditor's fees. For filing certificate, making
copy of such affidavit, and the certificate of date of such filing, the clerk of record shall be entitled to the same fees as are
provided by law for similar service in regard to chattel mortgages. [1890 p 452 § 5; RRS § 3059 1/2.]
60.52.050
Chapter 60.56
Chapter 60.56 RCW
AGISTER AND TRAINER LIENS
Sections
60.56.005
60.56.010
60.56.015
60.56.018
60.56.021
60.56.025
60.56.035
60.56.050
Definition of "agister."
Liens created.
Liens perfected.
Potential sale of animal to which lien is attached—Notice to
lien holder and potential buyer.
Violation of RCW 60.56.018—Civil action for damages—
Civil fine.
Lien created for care of animal seized by law enforcement
officer.
Expiration of lien.
Enforcement of lien.
60.56.005 Definition of "agister." For purposes of this
chapter "agister" means a farmer, ranchman, herder of cattle,
livery and boarding stable keeper, veterinarian, or other person, to whom horses, mules, cattle, or sheep are entrusted for
the purpose of feeding, herding, pasturing, training, caring
for, or ranching. [1993 c 53 § 1.]
60.56.005
60.56.010 Liens created. Any agister shall have a lien
upon the horses, mules, cattle, or sheep, and upon the proceeds or accounts receivable from such animals, for such
amount that may be due for the feeding, herding, pasturing,
training, caring for, and ranching of the animals, and shall be
authorized to retain possession of the horses, mules, cattle, or
sheep, until the amount is paid or the lien expires, whichever
first occurs. The lien attaches on the date such amounts are
due and payable but are unpaid. [1993 c 53 § 2; 1989 c 67 §
1; 1987 c 233 § 1; 1909 c 176 § 1; RRS § 1197.]
60.56.010
60.56.015 Liens perfected. An agister who holds a lien
under RCW 60.56.010 shall perfect the lien by (1) posting
notice of the lien in a conspicuous location on the premises
where the lien holder is keeping the animal or animals, (2)
providing a copy of the posted notice to the owner of the animal or animals, and (3) providing a copy of the posted notice
to any lien creditor as defined in RCW 62A.9A-102(52) if the
amount of the agister lien is in excess of one thousand five
hundred dollars. A lien creditor may be determined through a
search under RCW 62A.9A-523 and 62A.9A-526. The lien
holder is entitled to collect from the buyer, the seller, or the
person selling on a commission basis if there is a failure to
make payment to the perfected lien holder. [2001 c 32 § 7;
1993 c 53 § 3; 1989 c 67 § 2.]
60.56.015
Effective date—2001 c 32: See note following RCW 62A.9A-102.
60.56.018
60.56.018 Potential sale of animal to which lien is
attached—Notice to lien holder and potential buyer. A
party subject to a lien under RCW 60.56.010 shall notify (1)
(2004 Ed.)
Chapter 60.60
the lien holder of a potential sale of the animal or animals to
which the lien is attached, (2) a potential buyer of the existence of the unsatisfied lien against the animal or animals for
sale, and (3) any lien holder of record of the potential sale of
the animal or animals and of the existence of the unsatisfied
lien. [1993 c 53 § 4.]
60.56.021
60.56.021 Violation of RCW 60.56.018—Civil action
for damages—Civil fine. A person injured by a violation of
RCW 60.56.018 may bring civil action in the appropriate
court of jurisdiction to recover the actual damages sustained,
together with the costs of the suit, including reasonable attorney fees and any other costs associated with satisfaction of
the lien. The court may, in its discretion, increase the award
of damages to an amount not to exceed three times the actual
damages sustained.
If damages are awarded under this section, the court may
impose on a liable party a civil fine of not more than one
thousand dollars to be paid to the plaintiff. [1993 c 53 § 5.]
60.56.025
60.56.025 Lien created for care of animal seized by
law enforcement officer. If a law enforcement officer
authorizes removal of an animal pursuant to chapter 16.52
RCW, the person or entity receiving the animal and aiding in
its care or restoration to health shall have a lien upon the animal for the cost of feeding, pasturing, and caring otherwise
for the animal. The lien attaches on the date such costs are
due and payable but are unpaid. Any such person is authorized to retain possession of the animal until such costs are
paid or the lien expires, whichever first occurs. [1987 c 233
§ 2.]
60.56.035
60.56.035 Expiration of lien. Any lien created by this
chapter shall expire one hundred eighty days after it attaches,
unless, within that period, an action to enforce the lien is filed
pursuant to RCW 60.56.050. [1993 c 53 § 6; 1987 c 233 § 3.]
60.56.050
60.56.050 Enforcement of lien. Any person having a
lien under the provisions of this chapter may enforce the
same under chapter 60.10 RCW or, at the agister's option, by
an action in any court of competent jurisdiction. If enforcement is through court proceeding, the property may be sold
on execution for the purpose of satisfying the amount of the
judgment and costs of sale, together with the proper costs of
keeping the same up to the time of the sale. [1993 c 53 § 7;
1987 c 233 § 4; 1891 c 80 § 2; RRS § 1198. Formerly RCW
60.56.020, part.]
Chapter 60.60
Chapter 60.60 RCW
LIEN FOR TRANSPORTATION, STORAGE,
ADVANCEMENTS, ETC.
Sections
60.60.010
60.60.020
60.60.030
60.60.040
60.60.050
60.60.060
Liens created.
Livestock and perishable property—Sale of.
Sale of other property.
Application of proceeds.
Special contract not affected.
Notice, how given.
[Title 60 RCW—page 35]
60.60.010
Title 60 RCW: Liens
60.60.010
60.60.010 Liens created. Every person, firm or corporation who, as a commission merchant, carrier, wharfinger or
storage warehouseman, shall make advances for freight,
transportation, wharfage or storage upon the personal property of another, or shall carry or store such personal property,
shall have a lien thereon, so long as the same remains in his
possession, for the charges for advances, freight, transportation, wharfage or storage, and it shall be lawful for such person, firm or corporation to cause such property to be sold as
is herein in this chapter provided. [1927 c 144 § 1; Code
1881 § 1980; 1863 p 421 § 11; 1860 p 288 § 11; RRS § 1191.]
60.60.060 Notice, how given. All notices required
under this chapter shall be given as is or may be by law provided in cases of sales of personal property upon execution.
[Code 1881 § 1985; 1863 p 421 § 15; 1860 p 288 § 15; RRS
§ 1196.]
60.60.060
Sale of property on execution: Chapter 6.21 RCW.
Chapter 60.64 RCW
LIEN OF HOTELS, LODGING AND BOARDING
HOUSES—1915 ACT
Chapter 60.64
Sections
60.60.020
60.60.020 Livestock and perishable property—Sale
of. If said property consists of livestock, the maintenance of
which at the place where kept is wasteful and expensive in
proportion to the value of the animals, or consists of perishable property liable, if kept, to destruction, waste or great
depreciation, the person, firm or corporation having such lien
may sell the same upon giving ten days' notice. [1927 c 144
§ 2; Code 1881 § 1981; 1863 p 421 § 13; 1860 p 288 § 13;
RRS § 1192.]
60.64.003
60.64.005
60.64.007
60.64.010
60.64.040
60.64.050
"Hotel" defined.
Record of guests—Hotels and trailer camps.
Liability for loss of valuables, baggage and other property.
Lien on property of guest—"Guest" defined.
Sale—Notice—Disposition of funds.
Obtaining accommodations by fraud—Penalty.
Lien of hotels, lodging and boarding houses—1890 act: Chapter 60.66
RCW.
60.64.003 "Hotel" defined.
60.64.003
See RCW 19.48.010.
60.64.005 Record of guests—Hotels and trailer
camps. See RCW 19.48.020.
60.64.005
60.60.030
60.60.030 Sale of other property. All other property
upon which such charges may be unpaid, due, and a lien after
the same shall have remained in store uncalled for, for a
period of thirty days after such charges shall have become
due, may be sold by the person or persons having a lien for
the payment of such charges upon giving ten days' notice:
PROVIDED, That where the property can be conveniently
divided into separate lots or parcels, no more lots or parcels
shall be sold than shall be sufficient to pay the charges due on
the day of sale, and the expenses of the sale. [Code 1881 §
1982; 1863 p 421 § 12; 1860 p 288 § 12; RRS § 1193.]
60.60.040
60.60.040 Application of proceeds. The moneys arising from sales made under the provisions of this chapter shall
first be applied to the payment of the costs and expenses of
the sale, and then to the payment of the lawful charges of the
person or persons having a lien thereon for advances, freight,
transportation, wharfage or storage, for whose benefit the
sale shall [have] been made; the surplus, if any, shall be
retained subject to the future lawful charge of the person or
persons for whose benefit the sale was made, upon the property of the same owner still remaining in store uncalled for, if
any there be, and to the demand of the owner of the property,
who shall have paid such charges or otherwise satisfied such
lien, and all moneys remaining uncalled for, for the period of
three months, shall be paid to the county treasurer, and shall
remain in his hands a special fund for the benefit of the lawful
claimant thereof. [Code 1881 § 1983; 1863 p 421 § 14; 1860
p 288 § 14; RRS § 1194.]
60.60.050
60.60.050 Special contract not affected. Nothing in
this chapter contained shall be so construed as to alter or
affect the terms of any special contract in writing, made by
the parties as to the advances, affreightment, wharfage or
storage; but when any such special contract shall have been
made, its terms shall govern irrespective of this chapter.
[Code 1881 § 1984; RRS § 1195.]
[Title 60 RCW—page 36]
60.64.007 Liability for loss of valuables, baggage and
other property. See RCW 19.48.030 and 19.48.070.
60.64.007
60.64.010 Lien on property of guest—"Guest"
defined. The keeper of any hotel, boarding house or lodging
house, whether individual, partnership or corporation, has a
lien upon, and may retain, all baggage, sample cases, and
other property, lawfully in the possession of a guest, boarder,
or lodger, brought upon the premises by such guest, boarder,
or lodger, for the proper charges due from him or her, on
account of his or her food, board, room rent, lodging and
accommodation, and for such extras as are furnished at his or
her request, and for all money and credit paid for or advanced
to him or her; and for the costs of enforcing such lien; and
said hotel keeper, inn keeper, lodging house keeper or boarding house keeper, shall have the right to retain and hold possession of such baggage, sample cases and other property
until the amount of such charges and moneys be fully paid,
and to sell such baggage, sample cases, or other property for
the payment of such lien, charges and moneys in the manner
provided in RCW 60.64.040; and such baggage, sample cases
and property shall not be subject to attachment or execution
until such lien and storage charges and the cost of satisfying
such lien are fully satisfied: PROVIDED, HOWEVER, That
if any baggage, sample cases, or property becoming subject
to the lien herein provided for does not belong to the guest,
boarder or lodger who incurred the charges or indebtedness
secured thereby at the time when such charges or indebtedness shall be incurred, and if the hotel, inn, boarding house or
lodging house keeper entitled to such lien receives actual
notice of such fact at any time before the sale of such baggage, sample cases or property hereunder, then and in that
event such baggage, sample cases and property which are
subject to said lien and do not belong to said guest, boarder or
lodger at the time when such charges or indebtedness shall be
incurred, shall not be subject to sale in the manner herein pro60.64.010
(2004 Ed.)
Lien of Hotels, Lodging and Boarding Houses—1890 Act
vided, but the same may be sold in the manner provided by
law for the sale of property under a writ of execution to satisfy a judgment obtained in any action brought to recover the
said charges or indebtedness. A guest, within the meaning of
this chapter and chapter 19.48 RCW, includes each and every
person who is a member of the family of, or dependent upon,
a guest, boarder or lodger, in such hotel, inn, boarding house
or lodging house, and for whose support such tenant, guest,
boarder or lodger is legally liable. [1929 c 216 § 4; 1915 c
190 § 5; RRS § 6864. Formerly RCW 60.64.010 through
60.64.030.]
Severability—1929 c 216: See RCW 19.48.900.
60.68.015
60.66.010
60.66.010 Lien on property of guest. Hereafter all
hotel keepers, inn keepers, lodging house keepers and boarding house keepers in this state shall have a lien upon the baggage, property, or other valuables of their guests, lodgers or
boarders, brought into such hotel, inn, lodging house or
boarding house by such guests, lodgers or boarders, for the
proper charges due from such guests, lodgers or boarders for
their accommodation, board or lodging and such other extras
as are furnished at their request, and shall have the right to
retain in their possession such baggage, property or other
valuables until such charges are fully paid, and to sell such
baggage, property or other valuables for the payment of such
charges in the manner provided in RCW 60.66.020. [1890 p
96 § 1; RRS § 1201.]
60.64.040
60.64.040 Sale—Notice—Disposition of funds. If
such lien and all such charges and moneys are not fully paid
and satisfied within sixty days from the time when such
charges and moneys, respectively, become due, the keeper of
such hotel, inn, boarding house or lodging house, may then
proceed to sell such baggage, sample cases and other property, or any part thereof, at public auction, after giving ten
days notice of the time and place of sale by posting said
notice in three public places in the city or town wherein such
hotel, inn, boarding house or lodging house is located, and by
mailing a notice of the time and place of sale to such guest[,]
boarder or lodger at the place of residence, if any, registered
by him or her on the register, if any, of said hotel, inn, boarding house or lodging house; and after satisfying the lien and
paying all legal charges due from such guest, boarder or
lodger, including proper charges for storage of the said baggage, sample cases or property, and any expense of selling
the same that may accrue, any residue remaining shall, on
demand, within one year after such sale, be paid to such
guest, boarder or lodger, or his or her legal representatives:
PROVIDED, HOWEVER, That should such guest, boarder
or lodger fail or refuse to register from any particular town or
city, or not register at all, the notice herein required to be
mailed shall be addressed to the name of such guest, boarder
or lodger at the city or town wherein such hotel, inn, boarding
house or lodging house is located; and such sale shall be a
perpetual bar to any action against said hotel, inn, boarding
house or lodging house keeper for the recovery of such baggage, sample cases, or property, or of the value thereof, or for
any damage arising from the failure of such guest, boarder or
lodger to receive such baggage, sample cases, or property.
[1929 c 216 § 5; 1915 c 190 § 6; RRS § 6865.]
60.66.020
60.66.020 Sale to satisfy lien—Notice. Whenever any
baggage, property or other valuables which have been
retained by any hotel keeper, inn keeper, lodging house
keeper or boarding house keeper, in his possession by virtue
of the provision of RCW 60.66.010, shall remain unredeemed
for the period of three months after the same shall have been
so retained, then it shall be lawful for such hotel keeper, inn
keeper, lodging house keeper or boarding house keeper to sell
such baggage, property or other valuables at public auction,
after giving the owner thereof ten days' notice of the time and
place of such sale, through the post office, or by advertising
in some newspaper published in the county where such sale is
made, or by posting notices in three conspicuous places in
such county, and out of the proceeds of such sale to pay all
legal charges due from the owner of such baggage, property
or valuables, including proper charges for storage of the
same, and the overplus, if any, shall be paid to the owner
upon demand. [1890 p 96 § 2; RRS § 1202.]
Chapter 60.68 RCW
UNIFORM FEDERAL LIEN REGISTRATION ACT
Chapter 60.68
(Formerly: Lien for internal revenue taxes)
Sections
60.68.005
60.68.015
60.68.025
60.68.035
60.68.045
60.68.900
60.68.901
60.68.902
60.68.903
Application of chapter.
Notice of federal liens.
Certification of federal liens.
Fees for recording or filing federal liens.
Tax lien index—Duties of county auditor—Uniform commercial code filing system—Department of licensing.
Uniform application of chapter.
Short title.
Effective date—1988 c 73.
Effective date—1992 c 133.
60.64.050
60.64.050 Obtaining accommodations by fraud—
Penalty. See RCW 19.48.110.
Chapter 60.66
Chapter 60.66 RCW
LIEN OF HOTELS, LODGING AND BOARDING
HOUSES—1890 ACT
60.68.005
60.68.005 Application of chapter. This chapter applies
only to federal tax liens and to other federal liens, notices of
which under any act of congress or any regulation adopted
pursuant thereto are required or permitted to be recorded in
the same manner as notices of federal tax liens. [1988 c 73 §
1.]
60.68.015
Sections
60.66.010
60.66.020
Lien on property of guest.
Sale to satisfy lien—Notice.
Lien of hotels, lodging and boarding houses—1915 act: Chapter 60.64
RCW.
(2004 Ed.)
60.68.015 Notice of federal liens. (1) Notices of liens,
certificates, and other notices affecting federal tax liens or
other federal liens must be recorded for record in accordance
with this chapter.
(2) Notices of liens upon real property for obligations
payable to the United States and certificates and notices
[Title 60 RCW—page 37]
60.68.025
Title 60 RCW: Liens
affecting the liens shall be recorded in the office of the
recorder of the county in which the real property subject to
the liens is situated.
(3) Notices of federal liens upon personal property,
whether tangible or intangible, for obligations payable to the
United States and certificates and notices affecting the liens
shall be filed with the department of licensing. [1992 c 133 §
1; 1988 c 73 § 2.]
60.68.903 Effective date—1992 c 133. This act is necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its
existing public institutions, and shall take effect July 1, 1992.
[1992 c 133 § 4.]
60.68.903
Chapter 60.70
Chapter 60.70 RCW
LIMITATIONS ON NONCONSENSUAL
COMMON LAW LIENS
60.68.025
60.68.025 Certification of federal liens. Certification
of notices of liens, certificates, or other notices affecting federal liens by the United States secretary of the treasury or the
secretary's delegate, or by an official or entity of the United
States responsible for recording or certifying of notice of any
other lien, entitles those liens to be recorded and no other
attestation, certification, or acknowledgement is necessary.
[1988 c 73 § 3.]
Sections
60.70.010
60.70.020
60.70.030
60.70.040
60.70.050
60.70.060
60.68.035
60.68.035 Fees for recording or filing federal liens.
(1) The fee for recording a lien on real estate with the county
auditor shall be as set forth in RCW 36.18.010.
(2) The fee for filing liens of personal property with the
department of licensing of the state of Washington shall be as
determined by the department.
(3) The recording or filing officer shall bill the district
directors of the internal revenue service or other appropriate
federal officials on a monthly basis for fees for documents
filed for record by them. [1992 c 133 § 2; 1988 c 73 § 4.]
60.68.045
60.68.045 Tax lien index—Duties of county auditor—Uniform commercial code filing system—Department of licensing. (1) When a notice of a tax lien is recorded
under RCW 60.68.015(2), the county auditor shall forthwith
enter it in the general index showing the name and residence
of the taxpayer named in the notice, the collector's serial
number of the notice, the date and hour of recording, and the
amount of tax and penalty assessed. The auditor shall have
the ability to produce a separate tax lien index listing.
(2) When a notice of a tax lien is filed under RCW
60.68.015(3), the department of licensing shall enter it in the
uniform commercial code filing system showing the name
and address of the taxpayer as the debtor, and the internal revenue service as a secured party, and include the collector's
serial number of the notice, the date and hour of filing, and
the amount of tax and penalty assessed. [1999 c 233 § 7;
1992 c 133 § 3; 1988 c 73 § 5.]
Effective date—1999 c 233: See note following RCW 4.28.320.
60.70.070
Intent—Definitions.
Real property common law liens unenforceable—Personal
property common law liens limited.
No duty to accept filing of common law lien—Filing of a
notice of invalid lien.
No duty to disclose record of common law lien.
Immunity from liability for failure to accept filing or disclose
common law lien.
Petition for order directing common law lien claimant to
appear before court—Service of process—Filing fee—Costs
and attorneys' fees.
Claim of lien against a federal, state, or local official or
employee—Performance of duties—Validity.
60.70.010 Intent—Definitions. (1) It is the intent of
this chapter to limit the circumstances in which nonconsensual common law liens shall be recognized in this state.
(2) For the purposes of this chapter:
(a) "Lien" means an encumbrance on property as security for the payment of a debt;
(b) "Nonconsensual common law lien" is a lien that:
(i) Is not provided for by a specific statute;
(ii) Does not depend upon the consent of the owner of the
property affected for its existence; and
(iii) Is not a court-imposed equitable or constructive lien;
(c) "State or local official or employee" means an
appointed or elected official or any employee of a state
agency, board, commission, department in any branch of
state government, or institution of higher education; or of a
school district, political subdivision, or unit of local government of this state; and
(d) "Federal official or employee" means an employee of
the government and federal agency as defined for purposes of
the federal tort claims act, 28 U.S.C. Sec. 2671.
(3) Nothing in this chapter is intended to affect:
(a) Any lien provided for by statute;
(b) Any consensual liens now or hereafter recognized
under the common law of this state; or
(c) The ability of courts to impose equitable or constructive liens. [1995 c 19 § 1; 1986 c 181 § 1.]
60.70.010
60.70.020 Real property common law liens unenforceable—Personal property common law liens limited.
Nonconsensual common law liens against real property shall
not be recognized or enforceable. Nonconsensual common
law liens claimed against any personal property shall not be
recognized or enforceable if, at any time the lien is claimed,
the claimant fails to retain actual lawfully acquired possession or exclusive control of the property. [1986 c 181 § 2.]
60.70.020
60.68.900
60.68.900 Uniform application of chapter. This chapter shall be applied and construed to effectuate its general
purpose to make uniform the law with respect to the subject
of this chapter among states enacting it. [1988 c 73 § 6.]
60.68.901
60.68.901 Short title. This chapter may be known and
cited as the uniform federal lien registration act. [1988 c 73
§ 7.]
60.70.030 No duty to accept filing of common law
lien—Filing of a notice of invalid lien. (1) No person has a
duty to accept for filing or recording any claim of lien unless
60.70.030
60.68.902
60.68.902 Effective date—1988 c 73. This chapter
shall take effect July 1, 1988. [1988 c 73 § 10.]
[Title 60 RCW—page 38]
(2004 Ed.)
Landlord’s Lien for Rent
the lien is authorized by statute or imposed by a court having
jurisdiction over property affected by the lien, nor does any
person have a duty to reject for filing or recording any claim
of lien, except as provided in subsection (2) of this section.
(2) No person shall be obligated to accept for filing any
claim of lien against a federal, state, or local official or
employee based on the performance or nonperformance of
that official's or employee's duties unless accompanied by a
specific order from a court of competent jurisdiction authorizing the filing of such lien.
(3) If a claim of lien as described in subsection (2) of this
section has been accepted for filing, the recording officer
shall accept for filing a notice of invalid lien signed and submitted by the assistant United States attorney representing the
federal agency of which the individual is an official or
employee; the assistant attorney general representing the
state agency, board, commission, department, or institution
of higher education of which the individual is an official or
employee; or the attorney representing the school district,
political subdivision, or unit of local government of this state
of which the individual is an official or employee. A copy of
the notice of invalid lien shall be mailed by the attorney to the
person who filed the claim of lien at his or her last known
address. No recording officer or county shall be liable for the
acceptance for filing of a claim of lien as described in subsection (2) of this section, nor for the acceptance for filing of a
notice of invalid lien pursuant to this subsection. [1995 c 19
§ 4; 1986 c 181 § 3.]
60.72.010
upon the lien claimant by personal service, or, where the
court determines that service by mail is likely to give actual
notice, the court may order that service be made by any person over eighteen years of age, who is competent to be a witness, other than a party, by mailing copies of the petition and
order to the lien claimant at his or her last known address or
any other address determined by the court to be appropriate.
Two copies shall be mailed, postage prepaid, one by ordinary
first class mail and the other by a form of mail requiring a
signed receipt showing when and to whom it was delivered.
The envelopes must bear the return address of the sender.
(2) The order shall clearly state that if the lien claimant
fails to appear at the time and place noted, the claim of lien
shall be stricken and released and that the lien claimant shall
be ordered to pay the costs incurred by the petitioner, including reasonable attorneys' fees.
(3) The clerk of the court shall assign a cause number to
the petition and obtain from the petitioner a filing fee of
thirty-five dollars.
(4) If, following a hearing on the matter, the court determines that the claim of lien is invalid, the court shall issue an
order striking and releasing the claim of lien and awarding
costs and reasonable attorneys' fees to the petitioner to be
paid by the lien claimant. If the court determines that the
claim of lien is valid, the court shall issue an order so stating
and may award costs and reasonable attorneys' fees to the lien
claimant to be paid by the petitioner. [1995 c 19 § 2.]
60.70.070
60.70.040
60.70.040 No duty to disclose record of common law
lien. No person has a duty to disclose an instrument of record
or file that attempts to give notice of a common law lien. This
section does not relieve any person of any duty which otherwise may exist to disclose a claim of lien authorized by statute or imposed by order of a court having jurisdiction over
property affected by the lien. [1986 c 181 § 4.]
60.70.070 Claim of lien against a federal, state, or
local official or employee—Performance of duties—
Validity. Any claim of lien against a federal, state, or local
official or employee based on the performance or nonperformance of that official's or employee's duties shall be invalid
unless accompanied by a specific order from a court of competent jurisdiction authorizing the filing of such lien or unless
a specific statute authorizes the filing of such lien. [1995 c 19
§ 3.]
60.70.050
60.70.050 Immunity from liability for failure to
accept filing or disclose common law lien. A person is not
liable for damages arising from a refusal to record or file or a
failure to disclose any claim of a common law lien of record.
[1986 c 181 § 5.]
60.70.060
60.70.060 Petition for order directing common law
lien claimant to appear before court—Service of process—Filing fee—Costs and attorneys' fees. (1) Any person whose real or personal property is subject to a recorded
claim of common law lien who believes the claim of lien is
invalid, may petition the superior court of the county in
which the claim of lien has been recorded for an order, which
may be granted ex parte, directing the lien claimant to appear
before the court at a time no earlier than six nor later than
twenty-one days following the date of service of the petition
and order on the lien claimant, and show cause, if any, why
the claim of lien should not be stricken and other relief provided for by this section should not be granted. The petition
shall state the grounds upon which relief is requested, and
shall be supported by the affidavit of the petitioner or his or
her attorney setting forth a concise statement of the facts
upon which the motion is based. The order shall be served
(2004 Ed.)
Chapter 60.72
Chapter 60.72 RCW
LANDLORD'S LIEN FOR RENT
Sections
60.72.010
60.72.040
Liens created—Priority—Extent—Exceptions.
Foreclosure of lien.
60.72.010
60.72.010 Liens created—Priority—Extent—Exceptions. Any person to whom rent may be due, his or her executors, administrators, or assigns, shall have a lien for such
rent upon personal property which has been used or kept on
the rented premises by the tenant, except property of third
persons delivered to or left with the tenant for storage, repair,
manufacture, or sale, or under conditional bills of sale duly
filed, and such property as is exempt from execution by law.
Such liens for rent shall be paramount to, and have preference
over, all other liens except liens for taxes, general and special
liens of labor, and liens of mortgages duly recorded prior to
the tenancy. Such liens shall not be for more than two
months' rent due, except that a lien for up to four months' rent
due may be established when the tenant is renting a mobile
home lot in a mobile home park as defined in RCW
[Title 60 RCW—page 39]
60.72.040
Title 60 RCW: Liens
59.20.030. No lien may be enforced for any rent or any
installment thereof which has been due for more than two
months at the time of the commencement of an action to foreclose such liens, except that a lien may be enforced for rent
due for up to four months at the time of the commencement
of an action to foreclose the lien when the tenant is renting a
mobile home lot in a mobile home park as defined in RCW
59.20.030. No writing or recording shall be necessary to create such lien; and if such property be removed from the
rented premises and not returned to the owner, agent, executor, administrator, or assign, the lien shall continue and be a
superior lien on the property so removed for ten days from
the date of its removal, and the lien may be enforced against
the property wherever found. In the event the property contained in the rented premises be destroyed by fire or other elements, the lien shall extend to any money that may be
received by the tenant as indemnity for the destruction of the
property, nor shall the lien be lost by the sale of the property,
except merchandise sold in the usual course of trade or to
purchasers without notice of the tenancy. The provisions of
this chapter shall not apply to, nor shall it be enforced against,
the property of tenants in dwelling houses or apartments or
any other place that is used exclusively as a home or residence of the tenant and his or her family. [1990 c 169 § 3;
1927 c 108 § 1; 1917 c 165 § 1; RRS § 1203-1. Formerly
RCW 60.72.010, 60.72.020, 60.72.030.]
60.72.040
60.72.040 Foreclosure of lien. Said lien may be foreclosed as provided in chapter 60.10 RCW. [1995 c 62 § 12;
1969 c 82 § 15; 1917 c 165 § 2; RRS § 1203-2.]
Chapter 60.76 RCW
LIEN OF EMPLOYEES FOR CONTRIBUTIONS
TO BENEFIT PLANS
employed by such employer a notice of claim, containing a
statement of the demand, the name of the employer and the
name of the person employing the claimant, if known, with a
statement of the pertinent terms and conditions of the
employee benefit plan and the time when such contributions
are due and were to have been paid, and shall serve or mail a
copy thereof to said employer within such time. [1961 c 86 §
2.]
60.76.030
60.76.030 Manner of serving notice. Service of the
notice of claim may be made in the same manner as summons
in civil actions. [1961 c 86 § 3.]
60.76.040
60.76.040 Manner of enforcing lien—Costs. The lien
may be enforced within the same time and in the same manner as mechanics' liens are foreclosed when said lien is upon
real property, or within the same time and in the same manner
as chattel liens are enforced when the lien is upon personal
property. The court may allow, as part of the costs of the
action, the moneys paid for filing or recording the claim, a
reasonable attorney's fee in the superior court, court of
appeals, and supreme court, and court costs. [1971 c 81 §
130; 1961 c 86 § 4.]
60.76.050
60.76.050 Priority of lien. The lien created herein shall
be preferred to any encumbrance which may attach after the
contribution payments became due and is also preferred to
any encumbrance which may have attached previous to that
time, but which was not filed or recorded so as to create constructive notice thereof prior to that time, and of which the
lien claimant had no notice. [1961 c 86 § 5.]
Chapter 60.76
Sections
60.76.010
60.76.020
60.76.030
60.76.040
60.76.050
Chapter 60.80 RCW
LIEN FOR UNRECORDED UTILITY CHARGES
Chapter 60.80
Sections
Lien authorized.
Notice of lien—Contents—Filing and serving.
Manner of serving notice.
Manner of enforcing lien—Costs.
Priority of lien.
60.76.010
60.76.010 Lien authorized. Every employer who is
required to pay contributions, by agreement or otherwise,
into a fund of any employee benefit plan in order that his
employee may participate therein, shall pay such contributions in the required amounts and at the stipulated time or
each employee affected thereby shall have a lien on the earnings and on all property used in the operation of said
employer's business to the extent of the moneys, plus any
penalties, due to be paid by or on his behalf in order to qualify
him for participation therein, and for any moneys expended
or obligations incurred for medical, hospital, or other
expenses to which he would have been entitled had such
required contributions been paid. [1961 c 86 § 1.]
60.76.020
60.76.020 Notice of lien—Contents—Filing and serving. The lien claimant, or his representative on his behalf, or
the trustee of the fund on the claimant's behalf, within sixty
days after such payment becomes due shall file for record
with the auditor of the county wherein the claimant is or was
[Title 60 RCW—page 40]
60.80.005
60.80.010
60.80.020
60.80.900
Definitions.
Seller of real property responsible for satisfying lien—Closing
agent's duties and liabilities—Fee.
Seller's duty to inform closing agent—Written waiver—Closing agent's duties—Utility's duties—Payment of final billing.
Effective date—1996 c 43.
60.80.005
60.80.005 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter:
(1) Except as otherwise provided in this subsection (1),
"charges" include: (a) All lawful charges assessed by a utility
operated under chapter 35.21, 35.67, 36.36, 36.89, 36.94, or
57.08 RCW, but not evidenced by a recorded lien, recorded
covenant, recorded agreement, or special assessment roll
filed with the city or county treasurer or assessor, and not
billed and collected with property taxes; and (b) penalties and
interest, and reasonable attorneys' fees and other costs of
foreclosure if foreclosure proceedings have been commenced.
(2) "Closing agent" means an escrow agent as defined in
RCW 18.44.011(6) or a person exempt from licensing
requirements under RCW 18.44.021, handling the escrow on
the sale of the real property.
(2004 Ed.)
Lien for Unrecorded Utility Charges
(3) "Real estate agent" means a real estate broker, real
estate salesperson, associate real estate broker, or person as
defined in RCW 18.85.010 (1) through (4).
(4) "Business day" means a day the offices of the county
or counties in which the utility in question provides service
are open for business. [2004 c 215 § 7; 1996 c 43 § 1.]
60.80.010
60.80.010 Seller of real property responsible for satisfying lien—Closing agent's duties and liabilities—Fee.
(1) Unless otherwise stated and acknowledged in writing by
the purchaser, the seller of a fee interest in real property is
responsible for satisfying, upon closing, any lien provided for
by RCW 35.21.290, 35.67.200, 36.36.045, 36.89.090, or
36.94.150.
(2) No closing agent may refuse a written request by the
seller or purchaser of a fee interest in real property to administer the disbursement of closing funds necessary to satisfy
unpaid charges as charges are defined in RCW 60.80.005.
Except as otherwise provided in this subsection (2), a closing
agent who refuses such a written request is liable to the purchaser for unpaid charges for utility services covered by the
request. A closing agent is not liable if the closing agent's
refusal is based on the seller's inaccurate or incomplete identification of utilities providing service to the property, or if a
utility fails to provide an estimated or actual final billing, or
written extension of the per diem rate, as required by RCW
60.80.020, or if disbursement of closing funds necessary to
satisfy the unpaid charges would violate RCW 18.44.400.
(3) A closing agent may charge a fee for performing the
services required of the closing agent by this chapter, which
fee may be in addition to other fees or settlement charges collected in the course of ordinary settlement practices. [2004 c
215 § 8; 1996 c 43 § 2.]
60.80.020
60.80.020 Seller's duty to inform closing agent—
Written waiver—Closing agent's duties—Utility's
duties—Payment of final billing. (1) Unless the seller and
purchaser waive, in writing, the services of a closing agent in
administering the disbursement of closing funds necessary to
satisfy unpaid charges as charges are defined in RCW
60.80.005, the seller shall, as a provision in a written agreement for the purchase and sale of real estate, inform the closing agent for the sale of the names and addresses of all utilities, including special districts, providing service to the property under chapter 35.21, 35.67, 36.36, 36.89, 36.94, or 57.08
RCW. The provision of the information in a written agreement for the purchase and sale of real estate constitutes a
written request to the closing agent to administer disbursement of closing funds necessary to satisfy unpaid charges.
Unless the seller and purchaser have waived the services
of a closing agent as provided in this subsection, the closing
agent shall submit a written request for a final billing to each
utility identified by the seller as providing service to the property under chapter 35.21, 35.67, 36.36, 36.89, 36.94, or 57.08
RCW. Either the seller or purchaser may submit a written
request for a final billing to each utility identified by the
seller as providing service to the property under chapter
35.21, 35.67, 36.36, 36.89, 36.94, or 57.08 RCW.
The written request must identify the property by both
legal description and address. The closing agent, seller, or
(2004 Ed.)
60.80.020
purchaser may submit a written request to a utility by facsimile. In requesting final billings for utility services, the closing
agent may rely upon information provided by the seller, and
a closing agent or a real estate agent who is not the seller is
not liable for inaccurate or incomplete information.
(2) After receiving a written request for a final billing for
utility services to real property to be sold, a utility operated
under chapter 35.21, 35.67, 36.36, 36.89, 36.94, or 57.08
RCW shall provide the requesting party with a written estimated or actual final billing as provided in this section. If the
utility is unable to provide a written estimated or actual final
billing or written extension of the per diem rate, due to insufficient information to identify the account, the utility shall
notify the requesting party in writing that the information is
insufficient to identify the account.
The utility shall provide the written estimated or actual
final billing, or statement that the information in the request
is insufficient to identify the account, to the requesting party
within seven business days of receipt of the written request if
the request was mailed to the utility, or within three business
days if the request was sent to the utility by facsimile or delivered to the utility by messenger. A utility may provide a written estimated or actual final billing to the requesting party by
facsimile.
(a) The final billing must include all outstanding charges
and, in addition to the estimated or actual final amount owing
as of the stated closing date, must state the average per diem
rate for the utility or utilities involved, including taxes and
other charges, which shall apply for up to thirty days beyond
the stated closing date if the closing date is delayed.
(b) If closing is delayed beyond thirty days, a new estimated or actual final billing must be requested in writing. In
lieu of furnishing a written revised final billing, the utility
may extend, in writing, the number of days for which the per
diem charge applies. The utility shall respond within seven
business days of receipt of the written request for a new estimated or actual final billing if the request was mailed to the
utility, or within three business days if the request was sent to
the utility by facsimile or delivered to the utility by messenger.
(c) If a utility fails to provide a written estimated or
actual final billing, written extension of the per diem rate, or
statement that the information in the request is insufficient to
identify the account, within seven business days of receipt of
a written request if the request was mailed to the utility, or
within three business days if the request was sent to the utility
by facsimile or delivered to the utility by messenger, an unrecorded lien provided for by RCW 35.21.290, 35.67.200,
36.36.045, 36.89.090, or 36.94.150 for charges incurred prior
to the closing date is extinguished, and the utility may not
recover the charges from the purchaser of the property.
(d) A closing agent shall inform the seller and purchaser
of all applicable estimated and actual final billings furnished
by utilities.
In performing his or her duties under this chapter, a closing agent may rely upon information provided by utilities and
is not liable if information provided by utilities is inaccurate
or incomplete.
(3) If closing occurs no later than the last date for which
per diem charges may be applied, full payment of the estimated or actual final billing plus per diem charges extin[Title 60 RCW—page 41]
60.80.900
Title 60 RCW: Liens
guishes a lien of the utility provided for by RCW 35.21.290,
35.67.200, 36.36.045, 36.89.090, or 36.94.150 for charges
incurred prior to the closing date.
(4)(a) Except as otherwise provided in this subsection
(4)(a), this section does not limit the right of a utility to
recover from the purchaser of the property unpaid utility
charges incurred prior to closing, if the utility did not receive
a written request for a final billing or if the utility complied
with subsection (2) of this section.
A utility may not recover from a purchaser unpaid utility
charges incurred prior to closing in excess of an estimated
final billing.
(b) This section does not limit the right of a utility to
recover unpaid utility charges incurred prior to closing,
including unpaid utility charges in excess of an estimated
final billing, from the seller of the property, or from the person or persons who incurred the charges.
(c) If an estimated final billing is in excess of the actual
final billing, unless otherwise directed in writing by the seller
and purchaser, a utility shall refund any overcharge to the
seller of the property by sending the refund in the seller's
name to the last address provided by the seller. A utility shall
refund the overcharge within fourteen business days of the
date the utility receives payment for the final billing, unless a
county treasurer acts in an ex officio capacity as the treasurer
of a utility, in which case the utility shall refund the overcharge within thirty business days of the date the utility
receives payment for the final billing. [2004 c 215 § 9; 1996
c 43 § 3.]
60.80.900
60.80.900 Effective date—1996 c 43. This act shall
take effect January 1, 1997. [1996 c 43 § 4.]
Chapter 60.84 RCW
LIEN ON DIES, MOLDS, FORMS, AND PATTERNS
Chapter 60.84
Sections
60.84.005
60.84.010
Definitions.
Plastic fabricator, molder, and person conducting a plastic fabricating business has a lien—May retain possession—Notice
to customer—Foreclosure by notice and sale.
60.84.005
60.84.005 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Customer" means an individual or entity that contracts with, causes, or caused a plastic fabricator to use a die,
mold, form, or pattern to manufacture, assemble, or otherwise make a plastic product.
(2) "Plastic fabricator," "fabricator," or "molder" means
an individual or entity, including but not limited to a tool or
die maker, that contracts to or uses a die, mold, form, or pattern to manufacture, assemble, or otherwise make a plastic
product for a customer. [1996 c 235 § 3.]
to the customer for the amount owing from the customer for
plastic fabrication work and for the value of materials used in
the work. The fabricator may retain possession of the die,
mold, form, or pattern until the charges are paid. This lien
does not have priority over any security interest in the die,
mold, form, or pattern that is perfected at the time the fabricator acquires the lien.
(2) Before a lien is enforced, the fabricator must cause
written notice to be delivered personally or by registered or
certified mail to the last known address of the customer. The
notice must state that the fabricator will exercise its lien right
because of nonpayment. The notice must also state the
amount of money owed and demand payment. The fabricator's name, address, and phone number must be included in
the notice.
(3) If the fabricator is not paid the total due within sixty
days after the notice has been received by the customer, the
fabricator may foreclose the lien by notice and sale as provided in this section, if the die, mold, form, or pattern is in the
fabricator's possession. The fabricator must send notice of
intended sale, by registered or certified mail with return
receipt requested, to the last known address of the customer.
The notice must include: A description of the die, mold,
form, or pattern to be sold; a statement of intent to sell the die,
mold, form, or pattern at public sale; the date, time, and place
of the sale; and an itemized statement of moneys owing.
If there is no return receipt or if the postal service returns
the notice as undeliverable, the fabricator shall publish notice
of intention to sell the die, mold, form, or pattern at public
sale in a newspaper of general circulation in the county where
the die, mold, form, or pattern is physically located. The publication must include: A description of the die, mold, form,
or pattern; the name, address, and phone number of the customer; the name, address, and phone number of the fabricator; and the date, time, and place of the sale.
The fabricator is entitled to the amount owing plus the
costs of holding, preparing for sale, and selling the die, mold,
form, or pattern. The fabricator is also entitled to reasonable
attorneys' fees incurred.
(4) If the sale proceeds exceed the amount owing, the
excess must be paid to subsequent lien holders. Any remainder must be remitted to the customer.
(5) A public sale may not be held under this section if it
is in violation of a right of a customer under federal patent or
copyright law. [1996 c 235 § 4.]
60.84.010
60.84.010 Plastic fabricator, molder, and person conducting a plastic fabricating business has a lien—May
retain possession—Notice to customer—Foreclosure by
notice and sale. (1) A plastic fabricator, molder, and person
conducting a plastic fabricating business has a lien, dependent on possession, on a die, mold, form, or pattern belonging
[Title 60 RCW—page 42]
(2004 Ed.)
Title 61
Title 61
MORTGAGES, DEEDS OF TRUST, AND
REAL ESTATE CONTRACTS
Chapters
61.10 Mortgage insurance.
61.12 Foreclosure of real estate mortgages and personal property liens.
61.16 Assignment and satisfaction of real estate and
chattel mortgages.
61.24 Deeds of trust.
61.30 Real estate contract forfeitures.
61.34 Equity skimming.
Banks, real estate holdings: RCW 30.04.210.
Consumer loan act: Chapter 31.04 RCW.
Corporate powers of banks and trust companies: RCW 30.08.140,
30.08.150.
Credit unions: Chapter 31.12 RCW.
Excise tax on real estate sales: Chapter 82.45 RCW.
Frauds and swindles—Encumbered, leased or rented personal property:
RCW 9.45.060.
Fraudulent conveyances: Chapter 19.40 RCW.
Insurance companies, investments: Chapter 48.13 RCW.
Interest, usury: Chapter 19.52 RCW.
Joint tenancies: Chapter 64.28 RCW.
Liens: Title 60 RCW.
Motor vehicles, certificates of ownership: Chapter 46.12 RCW.
Mutual savings banks
investments: Chapter 32.20 RCW.
powers and duties: Chapters 32.08, 32.12, 32.16 RCW.
Negotiable instruments: Title 62A RCW.
Possession of real property to collect mortgaged, pledged or assigned rents
and profits: RCW 7.28.230.
Property taxes: Title 84 RCW.
Real estate brokers and salespersons: Chapter 18.85 RCW.
Real property and conveyances: Title 64 RCW.
Recording master form instruments and mortgages or deeds of trust incorporating master form provisions: RCW 65.08.160.
Recording mortgages: Title 65 RCW.
Retail installment sales of goods and services: Chapter 63.14 RCW.
Savings and loan associations: Title 33 RCW.
Statute of frauds: Chapter 19.36 RCW.
Chapter 61.10
Chapter 61.10 RCW
MORTGAGE INSURANCE
Sections
61.10.010
61.10.020
61.10.030
61.10.040
61.10.900
61.10.901
(2004 Ed.)
Definitions.
Condition of residential mortgage transaction—Disclosures—
Notices—Harm to borrower—Compliance with federal
requirements.
Termination of insurance during term of indebtedness—
Exception—Required conditions—Application to residential mortgage transactions—Compliance with federal
requirements.
Not required when loan is less than eighty percent of value—
Compliance with federal requirements.
Severability—1998 c 255.
Effective date—1998 c 255.
61.10.010 Definitions. As used in this chapter:
(1) "Institutional third party" means the federal national
mortgage association, the federal home loan mortgage corporation, the government national mortgage association, and
other substantially similar institutions, whether public or private, provided the institutions establish and adhere to rules
applicable to the right of cancellation of mortgage insurance,
which are the same or substantially the same as those utilized
by the institutions named in this subsection.
(2) "Mortgage insurance" means insurance, including
mortgage guarantee insurance, against financial loss by reason of nonpayment of principal, interest, and other sums
agreed to be paid in a residential mortgage transaction.
(3) "Residential mortgage transaction" means entering
into a loan for personal, family, household, or purchase
money purposes that is secured by a deed of trust or mortgage
on owner-occupied, one-to-four unit, residential real property
located in the state of Washington. [1998 c 255 § 1.]
61.10.010
61.10.020 Condition of residential mortgage transaction—Disclosures—Notices—Harm to borrower—Compliance with federal requirements. (1) If a borrower is
required to obtain and maintain mortgage insurance as a condition of entering into a residential mortgage transaction, the
lender shall disclose to the borrower whether and under what
conditions the borrower has the right to cancel the mortgage
insurance in the future. This disclosure shall include:
(a) Any identifying loan or insurance information, or
other information, necessary to permit the borrower to communicate with the servicer or lender concerning the private
mortgage insurance;
(b) The conditions that are required to be satisfied before
the mortgage insurance may be canceled; and
(c) The procedures required to be followed by the borrower to cancel the mortgage insurance.
The disclosure required in this subsection shall be made
in writing at the time the transaction is entered into.
(2) For residential mortgage transactions with mortgage
insurance, the lender, or the person servicing the residential
mortgage transaction if it is not the lender, annually shall provide the borrower with:
(a) A notice containing the same information as required
to be disclosed under subsection (1) of this section; or
(b) A statement indicating that the borrower may be able
to cancel the mortgage insurance and that the borrower may
contact the lender or loan servicer at a designated address and
phone number to find out whether the insurance can be canceled and the conditions and procedures to effect cancellation.
The notice or statement required by this subsection shall
be provided in writing in a clear and conspicuous manner in
or with each annual statement of account.
61.10.020
[Title 61 RCW—page 1]
61.10.030
Title 61 RCW: Mortgages, Deeds of Trust, and Real Estate Contracts
(3) The notices and statements required in this section
shall be provided without cost to the borrower.
(4) Any borrower in a residential mortgage transaction
who is harmed by a violation of this section may obtain
injunctive relief, may recover from the party who caused
such harm by failure to comply with this section up to three
times the amount of mortgage insurance premiums wrongly
collected, and may recover reasonable attorneys' fees and
costs of such action.
(5) This section does not apply to any mortgage funded
with bond proceeds issued under an indenture requiring mortgage insurance for the life of the loan or to loans insured by
the federal housing administration or the veterans administration.
(6) Subsection (1) of this section applies to residential
mortgage transactions entered into on or after July 1, 1998.
Subsection (2) of this section applies to any residential mortgage transaction existing on July 1, 1998, or entered into on
or after July 1, 1998.
(7) A lender or person servicing a residential mortgage
transaction who complies with federal requirements, as now
or hereafter enacted, prescribing mortgage insurance disclosures and notifications shall be deemed in compliance with
this section. [1998 c 255 § 2.]
61.10.030 Termination of insurance during term of
indebtedness—Exception—Required conditions—Application to residential mortgage transactions—Compliance
with federal requirements. (1) Except when a statute, regulation, rule, or written guideline promulgated by an institutional third party applicable to a residential mortgage transaction purchased in whole or in part by an institutional third
party specifically prohibits cancellation during the term of
indebtedness, the lender or servicer of a residential mortgage
transaction may not charge or collect future payments from a
borrower for mortgage insurance, and the borrower is not
obligated to make such payments, if all of the following conditions are satisfied:
(a) The borrower makes a written request to terminate
the obligation to make future payments for mortgage insurance;
(b) The residential mortgage transaction is at least two
years old;
(c) The outstanding principal balance of the residential
loan is not greater than eighty percent of the current fair market value of the property and is:
(i) For loans made for the purchase of the property, less
than eighty percent of the lesser of the sales price or the
appraised value at the time the transaction is entered into; or
(ii) For all other residential mortgage transactions, less
than eighty percent of the appraised value at the time the residential loan transaction was entered into.
The lender or servicer may request that a current
appraisal be done to verify the outstanding principal balance
is less than eighty percent of the current fair market value of
the property; unless otherwise agreed to in writing, the lender
or servicer selects the appraiser and splits the cost with the
borrower;
(d) The borrower's scheduled payment of monthly
installments or principal, interest, and any escrow obligations
is current at the time the borrower requests termination of his
61.10.030
[Title 61 RCW—page 2]
or her obligation to continue to pay for mortgage insurance,
those installments have not been more than thirty days late in
the last twelve months, and the borrower has not been
assessed more than one late penalty over the past twelve
months;
(e) A notice of default has not been recorded against the
property as the result of a nonmonetary default in the previous twelve months.
(2) This section applies to residential mortgage transactions entered into on or after July 1, 1998.
(3) This section does not apply to:
(a) Any residential mortgage transaction that is funded in
whole or in part pursuant to authority granted by statute, regulation, or rule that, as a condition of that funding, prohibits
or limits termination of payments for mortgage insurance
during the term of the indebtedness; or
(b) Any mortgage funded with bond proceeds issued
under an indenture requiring mortgage insurance for the life
of the loan.
(4) If the residential mortgage transaction will be or has
been sold in whole or in part to an institutional third party,
adherence to the institutional third party's standards for termination of future payments for mortgage insurance shall be
deemed in compliance with this section.
(5) A lender or person servicing a residential mortgage
transaction who complies with federal requirements, as now
or hereafter enacted, governing the cancellation of mortgage
insurance shall be deemed in compliance with this section.
[1998 c 255 § 3.]
61.10.040
61.10.040 Not required when loan is less than eighty
percent of value—Compliance with federal requirements.
On or after July 1, 1998, no borrower entering into a residential mortgage transaction in which the principal amount of the
loan is less than eighty percent of the fair market value of the
property shall be required to obtain mortgage insurance. Fair
market value for a purchase money loan is the lesser of the
sales price or the appraised value. This section shall not apply
to residential mortgage transactions in an amount in excess of
the maximum limits established by institutional third parties
where the borrower and the lender have agreed in writing to
mortgage insurance.
A lender or person servicing a residential mortgage
transaction who complies with federal requirements, as now
or hereafter enacted, governing the requirement of obtaining
mortgage insurance shall be deemed in compliance with this
section. [1998 c 255 § 4.]
61.10.900
61.10.900 Severability—1998 c 255. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1998 c 255 § 5.]
61.10.901
61.10.901 Effective date—1998 c 255. This act takes
effect July 1, 1998. [1998 c 255 § 6.]
(2004 Ed.)
Foreclosure of Real Estate Mortgages and Personal Property Liens
Chapter 61.12 RCW
FORECLOSURE OF REAL ESTATE MORTGAGES
AND PERSONAL PROPERTY LIENS
Chapter 61.12
Sections
61.12.010
61.12.020
61.12.030
61.12.040
61.12.050
61.12.060
61.12.061
61.12.070
61.12.080
61.12.090
61.12.093
61.12.094
61.12.095
61.12.100
61.12.110
61.12.120
61.12.130
61.12.140
61.12.150
61.12.170
Encumbrances shall be by deed.
Mortgage—Form—Contents—Effect.
Removal of property from mortgaged premises—Penalty.
Foreclosure—Venue.
When remedy confined to mortgaged property.
Judgment—Order of sale—Satisfaction—Upset price.
Exception as to mortgages held by the United States.
Decree to direct deficiency—Waiver in complaint.
Deficiency judgment—How enforced.
Execution on decree—Procedure.
Abandoned improved real estate—Purchaser takes free of
redemption rights.
Abandoned improved real estate—Deficiency judgment precluded—Complaint, requisites, service.
Abandoned improved real estate—Not applicable to property
used primarily for agricultural purposes.
Levy for deficiency under same execution.
Notice of sale on deficiency.
Concurrent actions prohibited.
Payment of sums due—Stay of proceedings.
Sale in parcels to pay installments due.
Sale of whole property—Disposition of proceeds.
Recording.
Community realty, encumbering: RCW 26.16.040.
Decedent's estate, liability for mortgage lien: RCW 11.04.270.
Foreclosure by organizations not admitted to transact business in state:
Chapter 23B.18 RCW.
Mortgagee cannot maintain action for possession: RCW 7.28.230.
Mortgaging of decedents' estates: Chapter 11.56 RCW.
Notice and sale summary foreclosure of personal property liens: Chapter
60.10 RCW.
Partition, sales on credit: RCW 7.52.290, 7.52.420.
Possession of real estate to collect mortgaged rents and profits: RCW
7.28.230.
Sales under execution and redemption: Chapter 6.21 RCW.
61.12.010 Encumbrances shall be by deed.
RCW 64.04.010.
mortgagor, lessee, or occupant of such real estate to destroy
or remove or to cause to be destroyed or removed from the
real estate any fixtures, buildings, or permanent improvements including a manufactured home whose title has been
eliminated under chapter 65.20 RCW, not including crops
growing thereon, without having first obtained from the owners or holders of each and all of such mortgages or other liens
his, her, or their written consent for such removal or destruction.
(2) Any person willfully violating this section is guilty of
a misdemeanor, and upon conviction thereof shall be punished by imprisonment in the county jail for a period not to
exceed six months, or by a fine of not more than five hundred
dollars, or by both such fine and imprisonment. [2003 c 53 §
288; 1989 c 343 § 21; 1899 c 75 § 1; RRS § 2709, part.
FORMER PART OF SECTION: 1899 c 75 § 2 now codified
as RCW 61.12.031.]
Intent—Effective date—2003 c 53: See notes following RCW
2.48.180.
Severability—Effective date—1989 c 343: See RCW 65.20.940 and
65.20.950.
61.12.040
Corporate seals, effect of absence from instrument: RCW 64.04.105.
61.12.010
61.12.060
See
61.12.040 Foreclosure—Venue. When default is made
in the performance of any condition contained in a mortgage,
the mortgagee or his assigns may proceed in the superior
court of the county where the land, or some part thereof, lies,
to foreclose the equity of redemption contained in the mortgage. [Code 1881 § 609; 1877 p 127 § 614; 1869 p 145 §
563; 1854 p 207 § 408; RRS § 1116.]
Real property, actions concerning to be brought where property is located:
RCW 4.12.010.
61.12.050
61.12.050 When remedy confined to mortgaged
property. When there is no express agreement in the mortgage nor any separate instrument given for the payment of the
sum secured thereby, the remedy of the mortgagee shall be
confined to the property mortgaged. [Code 1881 § 610; 1877
p 127 § 615; 1869 p 146 § 564; 1854 p 207 § 409; RRS §
1117.]
61.12.020
61.12.020 Mortgage—Form—Contents—Effect.
Mortgages of land may be made in substantially the following form: The mortgagor (here insert name or names) mortgages to (here insert name or names) to secure the payment of
(here insert the nature and amount of indebtedness, showing
when due, rate of interest, and whether evidenced by note,
bond or other instrument or not) the following described real
estate (here insert description) situated in the county of
. . . . . ., state of Washington.
Dated this . . . . day of . . . . . ., 19. . .
Every such mortgage, when otherwise properly executed,
shall be deemed and held a good and sufficient conveyance
and mortgage to secure the payment of the money therein
specified. The parties may insert in such mortgage any lawful
agreement or condition. [1929 c 33 § 12; RRS § 10555.
Prior: 1888 c 26 § 1; 1886 p 179 § 6.]
61.12.030 Removal of property from mortgaged premises—Penalty. (1) When any real estate in this state is subject to, or is security for, any mortgage, mortgages, lien or
liens, other than general liens arising under personal judgments, it shall be unlawful for any person who is the owner,
61.12.030
(2004 Ed.)
61.12.060
61.12.060 Judgment—Order of sale—Satisfaction—
Upset price. In rendering judgment of foreclosure, the court
shall order the mortgaged premises, or so much thereof as
may be necessary, to be sold to satisfy the mortgage and costs
of the action. The payment of the mortgage debt, with interest
and costs, at any time before sale, shall satisfy the judgment.
The court, in ordering the sale, may in its discretion, take
judicial notice of economic conditions, and after a proper
hearing, fix a minimum or upset price to which the mortgaged premises must be bid or sold before confirmation of
the sale.
The court may, upon application for the confirmation of
a sale, if it has not theretofore fixed an upset price, conduct a
hearing, establish the value of the property, and, as a condition to confirmation, require that the fair value of the property
be credited upon the foreclosure judgment. If an upset price
has been established, the plaintiff may be required to credit
this amount upon the judgment as a condition to confirmation. If the fair value as found by the court, when applied to
the mortgage debt, discharges it, no deficiency judgment
shall be granted. [1935 c 125 § 1; Code 1881 § 611; 1877 p
[Title 61 RCW—page 3]
61.12.061
Title 61 RCW: Mortgages, Deeds of Trust, and Real Estate Contracts
127 § 616; 1869 p 146 § 565; 1854 p 207 § 410; RRS § 1118.
FORMER PART OF SECTION: 1935 c 125 § 1 1/2 now
codified as RCW 61.12.061.]
Confirmation of sale of land: RCW 6.21.110.
61.12.061
61.12.061 Exception as to mortgages held by the
United States. The provisions of *this act shall not apply to
any mortgage while such mortgage is held by the United
States or by any agency, department, bureau, board or commission thereof as security or pledge of the maker, its successors or assigns. [1935 c 125 § 1 1/2; RRS § 1118-1. Formerly
RCW 61.12.060, part.]
*Reviser's note: "this act" appears in 1935 c 125 § 1 1/2; section 1 of
the 1935 act amends Code 1881 § 611; the 1935 act is codified as RCW
61.12.060 and 61.12.061.
61.12.070
61.12.070 Decree to direct deficiency—Waiver in
complaint. When there is an express agreement for the payment of the sum of money secured contained in the mortgage
or any separate instrument, the court shall direct in the decree
of foreclosure that the balance due on the mortgage, and costs
which may remain unsatisfied after the sale of the mortgaged
premises, shall be satisfied from any property of the mortgage debtor: PROVIDED, HOWEVER, That in all cases
where the mortgagee or other owner of such mortgage has
expressly waived any right to a deficiency judgment in the
complaint, as provided by RCW 6.23.020, there shall be no
such judgment for deficiency, and the remedy of the mortgagee or other owner of the mortgage shall be confined to the
sale of the property mortgaged. [1961 c 196 § 4; Code 1881
§ 612; 1877 p 127 § 617; 1869 p 146 § 566; 1854 p 208 § 411;
RRS § 1119.]
61.12.080
61.12.080 Deficiency judgment—How enforced.
Judgments over for any deficiency remaining unsatisfied
after application of the proceeds of sale of mortgaged property, either real or personal, shall be similar in all respects to
other judgments for the recovery of money, and may be made
a lien upon the property of a judgment debtor as other judgments, and the collections thereof enforced in the same manner. [Code 1881 § 622; 1877 p 129 § 625; 1869 p 148 § 575;
RRS § 1120.]
Enforcement of judgments: Title 6 RCW.
61.12.090
61.12.090 Execution on decree—Procedure. A decree
of foreclosure of mortgage or other lien may be enforced by
execution as an ordinary judgment or decree for the payment
of money. The execution shall contain a description of the
property described in the decree. The sheriff shall endorse
upon the execution the time when he receives it, and he shall
thereupon forthwith proceed to sell such property, or so much
thereof as may be necessary to satisfy the judgment, interest
and costs upon giving the notice prescribed in RCW
6.21.030. [1988 c 231 § 36; 1899 c 53 § 1; RRS § 1121. Cf.
Code 1881 § 613; 1869 p 146 § 567; 1854 p 208 § 412.]
Severability—1988 c 231: See note following RCW 6.01.050.
Property exempt from execution and attachment: RCW 6.15.010.
61.12.093
61.12.093 Abandoned improved real estate—Purchaser takes free of redemption rights. In actions to fore[Title 61 RCW—page 4]
close mortgages on real property improved by structure or
structures, if the court finds that the mortgagor or his successor in interest has abandoned said property for six months or
more, the purchaser at the sheriff's sale shall take title in and
to such property free from all redemption rights as provided
for in RCW 6.23.010 et seq. upon confirmation of the sheriff's sale by the court. Lack of occupancy by, or by authority
of, the mortgagor or his successor in interest for a continuous
period of six months or more prior to the date of the decree of
foreclosure, coupled with failure to make payment upon the
mortgage obligation within the said six month period, will be
prima facie evidence of abandonment. [1965 c 80 § 1; 1963
c 34 § 1.]
Deed to issue upon request immediately after confirmation of sale: RCW
6.21.120.
61.12.094
61.12.094 Abandoned improved real estate—Deficiency judgment precluded—Complaint, requisites, service. When proceeding under RCW 61.12.093 through
61.12.095 no deficiency judgment shall be allowed. No mortgagee shall deprive any mortgagor, his successors in interest,
or any redemptioner of redemption rights by default decree
without alleging such intention in the complaint: PROVIDED, HOWEVER, That such complaint need not be
served upon any person who acquired the status of such successor in interest or redemptioner after the recording of lis
pendens in such foreclosure action. [1965 c 80 § 2; 1963 c 34
§ 2.]
61.12.095
61.12.095 Abandoned improved real estate—Not
applicable to property used primarily for agricultural
purposes. RCW 61.12.093 and 61.12.094 shall not apply to
property used primarily for agricultural purposes. [1965 c 80
§ 3; 1963 c 34 § 3.]
61.12.100
61.12.100 Levy for deficiency under same execution.
In all actions of foreclosure where there is a decree for the
sale of the mortgaged premises or property, and a judgment
over for any deficiency remaining unsatisfied after applying
the proceeds of the sale of mortgaged property, further levy
and sales upon other property of the judgment debtor may be
made under the same execution. In such sales it shall only be
necessary to advertise notice for two weeks in a newspaper
published in the county where the said property is located,
and if there be no newspaper published therein, then in the
most convenient newspaper having a circulation in such
county. [Code 1881 § 620; 1877 p 129 § 623; 1873 p 151 §
571; 1869 p 148 § 573; RRS § 1123.]
61.12.110
61.12.110 Notice of sale on deficiency. When sales of
other property not embraced in the mortgage or decree of sale
are made under the execution to satisfy any deficiency
remaining due upon judgment, two weeks' publication of
notice of such sale shall be sufficient. Such notice shall be
published in a newspaper printed in the county where the
property is situated, and if there be no newspaper published
therein, then in the most convenient newspaper having a circulation in said county. [Code 1881 § 621; 1877 p 129 § 624;
1869 p 148 § 574; RRS § 1124.]
Notice of sales under execution: RCW 6.21.020.
(2004 Ed.)
Assignment and Satisfaction of Real Estate and Chattel Mortgages
61.12.120
61.12.120 Concurrent actions prohibited. The plaintiff shall not proceed to foreclose his mortgage while he is
prosecuting any other action for the same debt or matter
which is secured by the mortgage, or while he is seeking to
obtain execution of any judgment in such other action; nor
shall he prosecute any other action for the same matter while
he is foreclosing his mortgage or prosecuting a judgment of
foreclosure. [Code 1881 § 614; 1877 p 128 § 619; 1869 p 146
§ 568; 1854 p 208 § 413; RRS § 1125.]
61.12.130
61.12.130 Payment of sums due—Stay of proceedings. Whenever a complaint is filed for the foreclosure of a
mortgage upon which there shall be due any interest or
installment of the principal, and there are other installments
not due, if the defendant pay into the court the principal and
interest due, with costs, at any time before the final judgment,
proceedings thereon shall be stayed, subject to be enforced
upon a subsequent default in the payment of any installment
of the principal or interest thereafter becoming due. In the
final judgment, the court shall direct at what time and upon
what default any subsequent execution shall issue. [Code
1881 § 615; 1877 p 128 § 620; 1869 p 147 § 569; 1854 p 208
§ 414; RRS § 1126.]
61.12.140
61.12.140 Sale in parcels to pay installments due. In
such cases, after final judgment, the court shall ascertain
whether the property can be sold in parcels, and if it can be
done without injury to the interests of the parties, the court
shall direct so much only of the premises to be sold, as will be
sufficient to pay the amount then due on the mortgage with
costs, and the judgment shall remain and be enforced upon
any subsequent default, unless the amount due shall be paid
before execution of the judgment is perfected. [Code 1881 §
616; 1877 p 128 § 620 (2d of 2 sections with same number);
1869 p 147 § 570; 1854 p 208 § 415; RRS § 1127.]
61.12.150
61.12.150 Sale of whole property—Disposition of
proceeds. If the mortgaged premises cannot be sold in parcels, the court shall order the whole to be sold, and the proceeds of the sale shall be applied first to the payment of the
principal due, interest and costs, and then to the residue
secured by the mortgage and not due; and if the residue does
not bear interest, a deduction shall be made therefrom by discounting the legal interest; and in all cases where the proceeds of the sale shall be more than sufficient to pay the
amount due and costs, the surplus shall be paid to the mortgage debtor, his heirs and assigns. [Code 1881 § 617; 1877 p
128 § 621; 1869 p 147 § 571; 1854 p 208 § 416; RRS § 1128.]
61.12.170
61.12.170 Recording.
See chapter 65.08 RCW.
Chapter 61.16 RCW
ASSIGNMENT AND SATISFACTION OF REAL
ESTATE AND CHATTEL MORTGAGES
Chapter 61.16
Sections
61.16.010
61.16.020
61.16.030
Assignments, how made—Satisfaction by assignee.
Mortgages, how satisfied of record.
Failure to acknowledge satisfaction of mortgage—Damages—
Order.
Effect of recording assignment of mortgage: RCW 65.08.120.
(2004 Ed.)
Chapter 61.24
61.16.010
61.16.010 Assignments, how made—Satisfaction by
assignee. Any person to whom any real estate mortgage is
given, or the assignee of any such mortgage, may, by an
instrument in writing, signed and acknowledged in the manner provided by law entitling mortgages to be recorded,
assign the same to the person therein named as assignee, and
any person to whom any such mortgage has been so assigned,
may, after the assignment has been recorded in the office of
the auditor of the county wherein such mortgage is of record,
acknowledge satisfaction of the mortgage, and discharge the
same of record. [1995 c 62 § 13; 1897 c 23 § 1; RRS §
10616.]
Validating—1897 c 23: "All satisfactions of mortgages heretofore
made by the assignees thereof, where the assignment was in writing, signed
by the mortgagee or assignee, and where the same was recorded in the office
of the auditor of the county wherein the mortgage was recorded, are hereby
validated, and such satisfactions of mortgages so made shall have the same
effect as if made by the mortgagees in such mortgages." [1897 c 23 § 2.]
61.16.020
61.16.020 Mortgages, how satisfied of record. Whenever the amount due on any mortgage is paid, the mortgagee
or the mortgagee's legal representatives or assigns shall, at
the request of any person interested in the property mortgaged, execute an instrument in writing referring to the mortgage by the volume and page of the record or otherwise sufficiently describing it and acknowledging satisfaction in full
thereof. Said instrument shall be duly acknowledged, and
upon request shall be recorded in the county wherein the
mortgaged property is situated. Every instrument of writing
heretofore recorded and purporting to be a satisfaction of
mortgage, which sufficiently describes the mortgage which it
purports to satisfy so that the same may be readily identified,
and which has been duly acknowledged before an officer
authorized by law to take acknowledgments or oaths, is
hereby declared legal and valid, and a certified copy of the
record thereof is hereby constituted prima facie evidence of
such satisfaction. [1995 c 62 § 14; 1985 c 44 § 13; 1901 c 52
§ 1; 1886 p 116 § 1; RRS § 10614.]
61.16.030
61.16.030 Failure to acknowledge satisfaction of
mortgage—Damages—Order. If the mortgagee fails to
acknowledge satisfaction of the mortgage as provided in
RCW 61.16.020 sixty days from the date of such request or
demand, the mortgagee shall forfeit and pay to the mortgagor
damages and a reasonable attorneys' fee, to be recovered in
any court having competent jurisdiction, and said court, when
convinced that said mortgage has been fully satisfied, shall
issue an order in writing, directing the auditor to immediately
record the order. [1999 c 233 § 8; 1995 c 62 § 15; 1984 c 14
§ 1; 1886 p 117 § 2; RRS § 10615.]
Effective date—1999 c 233: See note following RCW 4.28.320.
Chapter 61.24
Chapter 61.24 RCW
DEEDS OF TRUST
Sections
61.24.005
61.24.010
61.24.020
61.24.025
Definitions.
Trustee, qualifications—Successor trustee.
Deeds subject to all mortgage laws—Foreclosure—Recording
and indexing—Trustee and beneficiary, separate entities,
exception.
Application of federal servicemembers civil relief act to deeds
of trust.
[Title 61 RCW—page 5]
61.24.005
61.24.030
61.24.040
61.24.042
61.24.045
61.24.050
61.24.060
61.24.070
61.24.080
61.24.090
61.24.100
61.24.110
61.24.120
61.24.130
61.24.135
61.24.140
Title 61 RCW: Mortgages, Deeds of Trust, and Real Estate Contracts
Requisites to trustee's sale.
Foreclosure and sale—Notice of sale.
Notice to guarantor—Contents—Failure to provide.
Requests for notice of sale.
Interest conveyed by trustee's deed—Sale is final if acceptance
is properly recorded—Redemption precluded after sale.
Rights and remedies of trustee's sale purchaser.
Trustee's sale, who may bid at—If beneficiary is purchaser—
If purchaser is not beneficiary.
Disposition of proceeds of sale—Notices—Surplus funds.
Curing defaults before sale—Discontinuance of proceedings—Notice of discontinuance—Execution and acknowledgment—Payments tendered to trustee.
Deficiency judgments—Foreclosure—Trustee's sale—Application of chapter.
Reconveyance by trustee.
Other foreclosure provisions preserved.
Restraint of sale by trustee—Conditions—Notice.
Consumer protection act—Unfair or deceptive acts or practices.
Assignment of rents—Collecting payment of rent.
Possession of real property by trustee of deed of trust to collect rents and
profits: RCW 7.28.230.
61.24.005 Definitions. The definitions in this section
apply throughout this chapter unless the context clearly
requires otherwise.
(1) "Grantor" means a person, or its successors, who executes a deed of trust to encumber the person's interest in property as security for the performance of all or part of the borrower's obligations.
(2) "Beneficiary" means the holder of the instrument or
document evidencing the obligations secured by the deed of
trust, excluding persons holding the same as security for a
different obligation.
(3) "Affiliate of beneficiary" means any entity which
controls, is controlled by, or is under common control with a
beneficiary.
(4) "Trustee" means the person designated as the trustee
in the deed of trust or appointed under RCW 61.24.010(2).
(5) "Borrower" means a person or a general partner in a
partnership, including a joint venture, that is liable for all or
part of the obligations secured by the deed of trust under the
instrument or other document that is the principal evidence of
such obligations, or the person's successors if they are liable
for those obligations under a written agreement with the beneficiary.
(6) "Guarantor" means any person and its successors
who is not a borrower and who guarantees any of the obligations secured by a deed of trust in any written agreement
other than the deed of trust.
(7) "Commercial loan" means a loan that is not made primarily for personal, family, or household purposes.
(8) "Trustee's sale" means a nonjudicial sale under a
deed of trust undertaken pursuant to this chapter.
(9) "Fair value" means the value of the property encumbered by a deed of trust that is sold pursuant to a trustee's sale.
This value shall be determined by the court or other appropriate adjudicator by reference to the most probable price, as of
the date of the trustee's sale, which would be paid in cash or
other immediately available funds, after deduction of prior
liens and encumbrances with interest to the date of the
trustee's sale, for which the property would sell on such date
after reasonable exposure in the market under conditions requisite to a fair sale, with the buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming
that neither is under duress.
61.24.005
[Title 61 RCW—page 6]
(10) "Record" and "recorded" includes the appropriate
registration proceedings, in the instance of registered land.
(11) "Person" means any natural person, or legal or governmental entity. [1998 c 295 § 1.]
61.24.010
61.24.010 Trustee, qualifications—Successor trustee.
(1) The trustee of a deed of trust under this chapter shall be:
(a) Any domestic corporation incorporated under Title
23B, 30, 31, 32, or 33 RCW of which at least one officer is a
Washington resident; or
(b) Any title insurance company authorized to insure title
to real property under the laws of this state, or its agents; or
(c) Any attorney who is an active member of the Washington state bar association at the time the attorney is named
trustee; or
(d) Any professional corporation incorporated under
chapter 18.100 RCW, any professional limited liability company formed under chapter 25.15 RCW, any general partnership, including limited liability partnerships, formed under
chapter 25.04 RCW, all of whose shareholders, members, or
partners, respectively, are either licensed attorneys or entities, provided all of the owners of those entities are licensed
attorneys, or any domestic corporation wholly owned by any
of the entities under this subsection (1)(d); or
(e) Any agency or instrumentality of the United States
government; or
(f) Any national bank, savings bank, or savings and loan
association chartered under the laws of the United States.
(2) The trustee may resign at its own election or be
replaced by the beneficiary. The trustee shall give prompt
written notice of its resignation to the beneficiary. The resignation of the trustee shall become effective upon the recording of the notice of resignation in each county in which the
deed of trust is recorded. If a trustee is not appointed in the
deed of trust, or upon the resignation, incapacity, disability,
absence, or death of the trustee, or the election of the beneficiary to replace the trustee, the beneficiary shall appoint a
trustee or a successor trustee. Upon recording the appointment of a successor trustee in each county in which the deed
of trust is recorded, the successor trustee shall be vested with
all powers of an original trustee. [1998 c 295 § 2; 1991 c 72
§ 58; 1987 c 352 § 1; 1981 c 161 § 1; 1975 1st ex.s. c 129 §
1; 1965 c 74 § 1.]
61.24.020
61.24.020 Deeds subject to all mortgage laws—Foreclosure—Recording and indexing—Trustee and beneficiary, separate entities, exception. Except as provided in
this chapter, a deed of trust is subject to all laws relating to
mortgages on real property. A deed conveying real property
to a trustee in trust to secure the performance of an obligation
of the grantor or another to the beneficiary may be foreclosed
by trustee's sale. The county auditor shall record the deed as
a mortgage and shall index the name of the grantor as mortgagor and the names of the trustee and beneficiary as mortgagee. No person, corporation or association may be both
trustee and beneficiary under the same deed of trust: PROVIDED, That any agency of the United States government
may be both trustee and beneficiary under the same deed of
trust. A deed of trust conveying real property that is used
principally for agricultural purposes may be foreclosed as a
(2004 Ed.)
Deeds of Trust
mortgage. Pursuant to *RCW 62A.9-501(4), when a deed of
trust encumbers both real and personal property, the trustee is
authorized to sell all or any portion of the grantor's interest in
that real and personal property at a trustee's sale. [1998 c 295
§ 3; 1985 c 193 § 2; 1975 1st ex.s. c 129 § 2; 1965 c 74 § 2.]
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001. For later enactment, see Article
62A.9A RCW.
Application—1985 c 193: "This act shall apply to foreclosures commenced, by the giving of a notice of default pursuant to RCW 61.24.030(6),
after July 28, 1985." [1985 c 193 § 5.]
61.24.025
61.24.025 Application of federal servicemembers
civil relief act to deeds of trust. All of the rights, duties, and
privileges conveyed under the federal servicemembers civil
relief act, P.L. 108-189, are applicable to deeds of trust under
Washington law. [2004 c 161 § 5.]
Effective date—2004 c 161: See note following RCW 28B.10.270.
61.24.030
61.24.030 Requisites to trustee's sale. It shall be requisite to a trustee's sale:
(1) That the deed of trust contains a power of sale;
(2) That the deed of trust contains a statement that the
real property conveyed is not used principally for agricultural
purposes; provided, if the statement is false on the date the
deed of trust was granted or amended to include that statement, and false on the date of the trustee's sale, then the deed
of trust must be foreclosed judicially. Real property is used
for agricultural purposes if it is used in an operation that produces crops, livestock, or aquatic goods;
(3) That a default has occurred in the obligation secured
or a covenant of the grantor, which by the terms of the deed
of trust makes operative the power to sell;
(4) That no action commenced by the beneficiary of the
deed of trust is now pending to seek satisfaction of an obligation secured by the deed of trust in any court by reason of the
grantor's default on the obligation secured: PROVIDED,
That (a) the seeking of the appointment of a receiver shall not
constitute an action for purposes of this chapter; and (b) if a
receiver is appointed, the grantor shall be entitled to any rents
or profits derived from property subject to a homestead as
defined in RCW 6.13.010. If the deed of trust was granted to
secure a commercial loan, this subsection shall not apply to
actions brought to enforce any other lien or security interest
granted to secure the obligation secured by the deed of trust
being foreclosed;
(5) That the deed of trust has been recorded in each
county in which the land or some part thereof is situated;
(6) That prior to the date of the notice of trustee's sale
and continuing thereafter through the date of the trustee's
sale, the trustee must have a street address in this state where
personal service of process may be made; and
(7) That at least thirty days before notice of sale shall be
recorded, transmitted or served, written notice of default shall
be transmitted by the beneficiary or trustee to the borrower
and grantor at their last known addresses by both first class
and either registered or certified mail, return receipt
requested, and the beneficiary or trustee shall cause to be
posted in a conspicuous place on the premises, a copy of the
notice, or personally served on the borrower and grantor.
This notice shall contain the following information:
(2004 Ed.)
61.24.040
(a) A description of the property which is then subject to
the deed of trust;
(b) Each county in which the deed of trust is recorded
and the document number given to the deed of trust upon
recording by each county auditor or recording officer;
(c) That the beneficiary has declared the borrower or
grantor to be in default, and a concise statement of the default
alleged;
(d) An itemized account of the amount or amounts in
arrears if the default alleged is failure to make payments;
(e) An itemized account of all other specific charges,
costs, or fees that the borrower, grantor, or any guarantor is or
may be obliged to pay to reinstate the deed of trust before the
recording of the notice of sale;
(f) The total of (d) and (e) of this subsection, designated
clearly and conspicuously as the amount necessary to reinstate the note and deed of trust before the recording of the
notice of sale;
(g) That failure to cure the alleged default within thirty
days of the date of mailing of the notice, or if personally
served, within thirty days of the date of personal service
thereof, may lead to recordation, transmittal, and publication
of a notice of sale, and that the property described in (a) of
this subsection may be sold at public auction at a date no less
than one hundred twenty days in the future;
(h) That the effect of the recordation, transmittal, and
publication of a notice of sale will be to (i) increase the costs
and fees and (ii) publicize the default and advertise the
grantor's property for sale;
(i) That the effect of the sale of the grantor's property by
the trustee will be to deprive the grantor of all their interest in
the property described in (a) of this subsection; and
(j) That the borrower, grantor, and any guarantor has
recourse to the courts pursuant to RCW 61.24.130 to contest
the alleged default on any proper ground. [1998 c 295 § 4;
1990 c 111 § 1; 1987 c 352 § 2; 1985 c 193 § 3; 1975 1st ex.s.
c 129 § 3; 1965 c 74 § 3.]
Application—1985 c 193: See note following RCW 61.24.020.
61.24.040
61.24.040 Foreclosure and sale—Notice of sale. A
deed of trust foreclosed under this chapter shall be foreclosed
as follows:
(1) At least ninety days before the sale, the trustee shall:
(a) Record a notice in the form described in RCW
61.24.040(1)(f) in the office of the auditor in each county in
which the deed of trust is recorded;
(b) To the extent the trustee elects to foreclose its lien or
interest, or the beneficiary elects to preserve its right to seek
a deficiency judgment against a borrower or grantor under
RCW 61.24.100(3)(a), and if their addresses are stated in a
recorded instrument evidencing their interest, lien, or claim
of lien, or an amendment thereto, or are otherwise known to
the trustee, cause a copy of the notice of sale described in
RCW 61.24.040(1)(f) to be transmitted by both first class and
either certified or registered mail, return receipt requested, to
the following persons or their legal representatives, if any, at
such address:
(i) The borrower and grantor;
(ii) The beneficiary of any deed of trust or mortgagee of
any mortgage, or any person who has a lien or claim of lien
[Title 61 RCW—page 7]
61.24.040
Title 61 RCW: Mortgages, Deeds of Trust, and Real Estate Contracts
against the property, that was recorded subsequent to the
recordation of the deed of trust being foreclosed and before
the recordation of the notice of sale;
(iii) The vendee in any real estate contract, the lessee in
any lease, or the holder of any conveyances of any interest or
estate in any portion or all of the property described in such
notice, if that contract, lease, or conveyance of such interest
or estate, or a memorandum or other notice thereof, was
recorded after the recordation of the deed of trust being foreclosed and before the recordation of the notice of sale;
(iv) The last holder of record of any other lien against or
interest in the property that is subject to a subordination to the
deed of trust being foreclosed that was recorded before the
recordation of the notice of sale;
(v) The last holder of record of the lien of any judgment
subordinate to the deed of trust being foreclosed; and
(vi) The occupants of property consisting solely of a single-family residence, or a condominium, cooperative, or
other dwelling unit in a multiplex or other building containing fewer than five residential units, whether or not the occupant's rental agreement is recorded, which notice may be a
single notice addressed to "occupants" for each unit known to
the trustee or beneficiary;
(c) Cause a copy of the notice of sale described in RCW
61.24.040(1)(f) to be transmitted by both first class and either
certified or registered mail, return receipt requested, to the
plaintiff or the plaintiff's attorney of record, in any court
action to foreclose a lien or other encumbrance on all or any
part of the property, provided a court action is pending and a
lis pendens in connection therewith is recorded in the office
of the auditor of any county in which all or part of the property is located on the date the notice is recorded;
(d) Cause a copy of the notice of sale described in RCW
61.24.040(1)(f) to be transmitted by both first class and either
certified or registered mail, return receipt requested, to any
person who has recorded a request for notice in accordance
with RCW 61.24.045, at the address specified in such person's most recently recorded request for notice;
(e) Cause a copy of the notice of sale described in RCW
61.24.040(1)(f) to be posted in a conspicuous place on the
property, or in lieu of posting, cause a copy of said notice to
be served upon any occupant of the property;
(f) The notice shall be in substantially the following
form:
NOTICE OF TRUSTEE'S SALE
I.
NOTICE IS HEREBY GIVEN that the undersigned Trustee
will on the . . . . day of . . . . . ., . . ., at the hour of . . . . o'clock
. . . . M. at . . . . . . . . . . . . . . . . . . . . . . . . . . . . [street address
and location if inside a building] in the City of . . . . . ., State
of Washington, sell at public auction to the highest and best
bidder, payable at the time of sale, the following described
real property, situated in the County(ies) of . . . . . ., State of
Washington, to-wit:
[Title 61 RCW—page 8]
[If any personal property is to be included in the
trustee's sale, include a description that reasonably
identifies such personal property]
which is subject to that certain Deed of Trust dated . . . . . .,
. . ., recorded . . . . . ., . . ., under Auditor's File No. . . . .,
records of . . . . . . County, Washington, from . . . . . . . . ., as
Grantor, to . . . . . . . . ., as Trustee, to secure an obligation in
favor of . . . . . . . . ., as Beneficiary, the beneficial interest in
which was assigned by . . . . . . . . ., under an Assignment
recorded under Auditor's File No. . . . . [Include recording
information for all counties if the Deed of Trust is recorded in
more than one county.]
II.
No action commenced by the Beneficiary of the Deed of
Trust is now pending to seek satisfaction of the obligation in
any Court by reason of the Borrower's or Grantor's default on
the obligation secured by the Deed of Trust.
[If there is another action pending to foreclose other
security for all or part of the same debt, qualify the
statement and identify the action.]
III.
The default(s) for which this foreclosure is made is/are as follows:
[If default is for other than payment of money, set
forth the particulars]
Failure to pay when due the following amounts which are
now in arrears:
IV.
The sum owing on the obligation secured by the Deed of
Trust is: Principal $ . . . . . ., together with interest as provided in the note or other instrument secured from the . . . .
day of . . . . . ., . . ., and such other costs and fees as are due
under the note or other instrument secured, and as are provided by statute.
V.
The above-described real property will be sold to satisfy the
expense of sale and the obligation secured by the Deed of
Trust as provided by statute. The sale will be made without
warranty, express or implied, regarding title, possession, or
encumbrances on the . . . . day of . . . . . ., . . . The default(s)
referred to in paragraph III must be cured by the . . . . day of
. . . . . ., . . . (11 days before the sale date), to cause a discontinuance of the sale. The sale will be discontinued and terminated if at any time on or before the . . . . day of . . . . . ., . . .,
(11 days before the sale date), the default(s) as set forth in
paragraph III is/are cured and the Trustee's fees and costs are
paid. The sale may be terminated any time after the . . . . day
(2004 Ed.)
Deeds of Trust
of . . . . . ., . . . (11 days before the sale date), and before the
sale by the Borrower, Grantor, any Guarantor, or the holder
of any recorded junior lien or encumbrance paying the entire
principal and interest secured by the Deed of Trust, plus
costs, fees, and advances, if any, made pursuant to the terms
of the obligation and/or Deed of Trust, and curing all other
defaults.
VI.
A written notice of default was transmitted by the Beneficiary or Trustee to the Borrower and Grantor at the following
addresses:
.....................
.....................
.....................
by both first class and certified mail on the . . . . day of
. . . . . ., . . ., proof of which is in the possession of the
Trustee; and the Borrower and Grantor were personally
served on the . . . . day of . . . . . ., . . ., with said written notice
of default or the written notice of default was posted in a conspicuous place on the real property described in paragraph I
above, and the Trustee has possession of proof of such service or posting.
VII.
The Trustee whose name and address are set forth below will
provide in writing to anyone requesting it, a statement of all
costs and fees due at any time prior to the sale.
VIII.
The effect of the sale will be to deprive the Grantor and all
those who hold by, through or under the Grantor of all their
interest in the above-described property.
IX.
Anyone having any objection to the sale on any grounds
whatsoever will be afforded an opportunity to be heard as to
those objections if they bring a lawsuit to restrain the sale
pursuant to RCW 61.24.130. Failure to bring such a lawsuit
may result in a waiver of any proper grounds for invalidating
the Trustee's sale.
[Add Part X to this notice if applicable under RCW
61.24.040(9)]
.................................
. . . . . . . . . . . , Trustee
.......
.......
.......





Address
.......
}
Phone
[Acknowledgment]
(2) In addition to providing the borrower and grantor the
notice of sale described in RCW 61.24.040(1)(f), the trustee
shall include with the copy of the notice which is mailed to
the grantor, a statement to the grantor in substantially the following form:
(2004 Ed.)
61.24.040
NOTICE OF FORECLOSURE
Pursuant to the Revised Code of Washington,
Chapter 61.24 RCW
The attached Notice of Trustee's Sale is a consequence of
default(s) in the obligation to . . . . . ., the Beneficiary of your
Deed of Trust and owner of the obligation secured thereby.
Unless the default(s) is/are cured, your property will be sold
at auction on the . . . . day of . . . . . ., . . .
To cure the default(s), you must bring the payments current, cure any other defaults, and pay accrued late charges
and other costs, advances, and attorneys' fees as set forth
below by the . . . . day of . . . . . ., . . . [11 days before the sale
date]. To date, these arrears and costs are as follows:
Currently due
to reinstate
on . . . . .
......
Estimated amount
that will be due
to reinstate
on . . . . .
......
(11 days before
the date set
for sale)
Delinquent payments
from . . . . . .,
. . ., in the
amount of
$ . . . ./mo.:
$....
$....
Late charges in
the total
amount of:
$....
Attorneys' fees:
$....
$....
Estimated
Amounts
$....
Trustee's fee:
$....
$....
$....
$....
$....
$....
$....
$....
$....
$....
$....
$....
$....
Trustee's expenses:
(Itemization)
Title report
Recording fees
Service/Posting
of Notices
Postage/Copying
expense
Publication
Telephone
charges
Inspection fees
......
......
TOTALS
$....
$....
$....
$....
$....
$....
$....
$....
$....
As to the defaults which do not involve payment of
money to the Beneficiary of your Deed of Trust, you must
cure each such default. Listed below are the defaults which
do not involve payment of money to the Beneficiary of your
Deed of Trust. Opposite each such listed default is a brief
description of the action necessary to cure the default and a
description of the documentation necessary to show that the
default has been cured.
[Title 61 RCW—page 9]
61.24.040
Default
.......
.......
Title 61 RCW: Mortgages, Deeds of Trust, and Real Estate Contracts
Description of Action Required to Cure and
Documentation Necessary to Show Cure
...............................
...............................
...............................
...............................
...............................
...............................
You may reinstate your Deed of Trust and the obligation
secured thereby at any time up to and including the . . . . day
of . . . . . ., . . . [11 days before the sale date], by paying the
amount set forth or estimated above and by curing any other
defaults described above. Of course, as time passes other payments may become due, and any further payments coming
due and any additional late charges must be added to your
reinstating payment. Any new defaults not involving payment of money that occur after the date of this notice must
also be cured in order to effect reinstatement. In addition,
because some of the charges can only be estimated at this
time, and because the amount necessary to reinstate may
include presently unknown expenditures required to preserve
the property or to comply with state or local law, it will be
necessary for you to contact the Trustee before the time you
tender reinstatement so that you may be advised of the exact
amount you will be required to pay. Tender of payment or
performance must be made to: . . . . . ., whose address is
. . . . . ., telephone ( ) . . . . . . AFTER THE . . . . DAY OF
. . . . . ., . . ., YOU MAY NOT REINSTATE YOUR DEED
OF TRUST BY PAYING THE BACK PAYMENTS AND
C O S T S A N D F E E S A N D C U R I N G TH E O T H E R
DEFAULTS AS OUTLINED ABOVE. In such a case, you
will only be able to stop the sale by paying, before the sale,
the total principal balance ($ . . . . . .) plus accrued interest,
costs and advances, if any, made pursuant to the terms of the
documents and by curing the other defaults as outlined above.
You may contest this default by initiating court action in
the Superior Court of the county in which the sale is to be
held. In such action, you may raise any legitimate defenses
you have to this default. A copy of your Deed of Trust and
documents evidencing the obligation secured thereby are
enclosed. You may wish to consult a lawyer. Legal action on
your part may prevent or restrain the sale, but only if you persuade the court of the merits of your defense.
The court may grant a restraining order or injunction to
restrain a trustee's sale pursuant to RCW 61.24.130 upon five
days notice to the trustee of the time when, place where, and
the judge before whom the application for the restraining
order or injunction is to be made. This notice shall include
copies of all pleadings and related documents to be given to
the judge. Notice and other process may be served on the
trustee at:
NAME: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ADDRESS:
..........................
..........................
TELEPHONE NUMBER:
.................
If you do not reinstate the secured obligation and your
Deed of Trust in the manner set forth above, or if you do not
succeed in restraining the sale by court action, your property
will be sold. The effect of such sale will be to deprive you and
[Title 61 RCW—page 10]
all those who hold by, through or under you of all interest in
the property;
(3) In addition, the trustee shall cause a copy of the
notice of sale described in RCW 61.24.040(1)(f) (excluding
the acknowledgment) to be published in a legal newspaper in
each county in which the property or any part thereof is situated, once on or between the thirty-fifth and twenty-eighth
day before the date of sale, and once on or between the fourteenth and seventh day before the date of sale;
(4) On the date and at the time designated in the notice of
sale, the trustee or its authorized agent shall sell the property
at public auction to the highest bidder. The trustee may sell
the property in gross or in parcels as the trustee shall deem
most advantageous;
(5) The place of sale shall be at any designated public
place within the county where the property is located and if
the property is in more than one county, the sale may be in
any of the counties where the property is located. The sale
shall be on Friday, or if Friday is a legal holiday on the following Monday, and during the hours set by statute for the
conduct of sales of real estate at execution;
(6) The trustee may for any cause the trustee deems
advantageous, continue the sale for a period or periods not
exceeding a total of one hundred twenty days by a public
proclamation at the time and place fixed for sale in the notice
of sale or, alternatively, by giving notice of the time and place
of the postponed sale in the manner and to the persons specified in RCW 61.24.040(1) (b), (c), (d), and (e) and publishing
a copy of such notice once in the newspaper(s) described in
RCW 61.24.040(3), more than seven days before the date
fixed for sale in the notice of sale. No other notice of the postponed sale need be given;
(7) The purchaser shall forthwith pay the price bid and
on payment the trustee shall execute to the purchaser its deed;
the deed shall recite the facts showing that the sale was conducted in compliance with all of the requirements of this
chapter and of the deed of trust, which recital shall be prima
facie evidence of such compliance and conclusive evidence
thereof in favor of bona fide purchasers and encumbrancers
for value, except that these recitals shall not affect the lien or
interest of any person entitled to notice under RCW
61.24.040(1), if the trustee fails to give the required notice to
such person. In such case, the lien or interest of such omitted
person shall not be affected by the sale and such omitted person shall be treated as if such person was the holder of the
same lien or interest and was omitted as a party defendant in
a judicial foreclosure proceeding;
(8) The sale as authorized under this chapter shall not
take place less than one hundred ninety days from the date of
default in any of the obligations secured.
(9) If the trustee elects to foreclose the interest of any
occupant or tenant of property comprised solely of a singlefamily residence, or a condominium, cooperative, or other
dwelling unit in a multiplex or other building containing
fewer than five residential units, the following notice shall be
included as Part X of the Notice of Trustee's Sale:
X.
NOTICE TO OCCUPANTS OR TENANTS
The purchaser at the trustee's sale is entitled to possession of
the property on the 20th day following the sale, as against the
(2004 Ed.)
Deeds of Trust
grantor under the deed of trust (the owner) and anyone having
an interest junior to the deed of trust, including occupants and
tenants. After the 20th day following the sale the purchaser
has the right to evict occupants and tenants by summary proceedings under the unlawful detainer act, chapter 59.12
RCW.
(10) Only one copy of all notices required by this chapter
need be given to a person who is both the borrower and the
grantor. All notices required by this chapter that are given to
a general partnership are deemed given to each of its general
partners, unless otherwise agreed by the parties. [1998 c 295
§ 5; 1989 c 361 § 1; 1987 c 352 § 3; 1985 c 193 § 4; 1981 c
161 § 3; 1975 1st ex.s. c 129 § 4; 1967 c 30 § 1; 1965 c 74 §
4.]
Application—1985 c 193: See note following RCW 61.24.020.
61.24.042
61.24.042 Notice to guarantor—Contents—Failure
to provide. The beneficiary may give the notices of default,
trustee's sale, and foreclosure referred to in RCW
61.24.030(7) and 61.24.040 to any one or more of the guarantors of a commercial loan at the time they are given to the
grantor. In addition to the information contained in the
notices provided to the grantor, these notices shall state that
(1) the guarantor may be liable for a deficiency judgment to
the extent the sale price obtained at the trustee's sale is less
than the debt secured by the deed of trust; (2) the guarantor
has the same rights to reinstate the debt, cure the default, or
repay the debt as is given to the grantor in order to avoid the
trustee's sale; (3) the guarantor will have no right to redeem
the property after the trustee's sale; (4) subject to such longer
periods as are provided in the Washington deed of trust act,
chapter 61.24 RCW, any action brought to enforce a guaranty
must be commenced within one year after the trustee's sale,
or the last trustee's sale under any deed of trust granted to
secure the same debt; and (5) in any action for a deficiency,
the guarantor will have the right to establish the fair value of
the property as of the date of the trustee's sale, less prior liens
and encumbrances, and to limit its liability for a deficiency to
the difference between the debt and the greater of such fair
value or the sale price paid at the trustee's sale, plus interest
and costs. The failure of the beneficiary to provide any guarantor the notice referred to in this section does not invalidate
either the notices given to the borrower or the grantor, or the
trustee's sale. [1998 c 295 § 6.]
61.24.045
61.24.045 Requests for notice of sale. Any person
desiring a copy of any notice of sale described in RCW
61.24.040(1)(f) under any deed of trust, other than a person
entitled to receive such a notice under RCW 61.24.040(1) (b)
or (c), must, after the recordation of such deed of trust and
before the recordation of the notice of sale, cause to be filed
for record, in the office of the auditor of any county in which
the deed of trust is recorded, a duly acknowledged request for
a copy of any notice of sale. The request shall be signed and
acknowledged by the person to be notified or such person's
agent, attorney, or representative; shall set forth the name,
mailing address, and telephone number, if any, of the person
or persons to be notified; shall identify the deed of trust by
stating the names of the parties thereto, the date the deed of
trust was recorded, the legal description of the property
(2004 Ed.)
61.24.070
encumbered by the deed of trust, and the auditor's file number
under which the deed of trust is recorded; and shall be in substantially the following form:
REQUEST FOR NOTICE
Request is hereby made that a copy of any notice of sale
described in RCW 61.24.040(1)(f) under that certain Deed of
Trust dated . . . . . ., 19. . ., recorded on . . . . . ., 19. . ., under
auditor's file No. . . . . . ., records of . . . . . . County, Washington, from . . . . . ., as Grantor, to . . . . . . . . ., as Trustee, to
secure an obligation in favor of . . . . . . . . ., as Beneficiary,
and affecting the following described real property:
(Legal Description)
be sent by both first class and either registered or certified
mail, return receipt requested, to . . . . . . . . . at . . . . . . . . .
Dated this . . . . day of . . . . . ., 19. . .
.....................
Signature
(Acknowledgment)
A request for notice under this section shall not affect title to,
or be deemed notice to any person that any person has any
right, title, interest in, lien or charge upon, the property
described in the request for notice. [1985 c 193 § 1.]
Application—1985 c 193: See note following RCW 61.24.020.
61.24.050
61.24.050 Interest conveyed by trustee's deed—Sale
is final if acceptance is properly recorded—Redemption
precluded after sale. When delivered to the purchaser, the
trustee's deed shall convey all of the right, title, and interest in
the real and personal property sold at the trustee's sale which
the grantor had or had the power to convey at the time of the
execution of the deed of trust, and such as the grantor may
have thereafter acquired. If the trustee accepts a bid, then the
trustee's sale is final as of the date and time of such acceptance if the trustee's deed is recorded within fifteen days
thereafter. After a trustee's sale, no person shall have any
right, by statute or otherwise, to redeem the property sold at
the trustee's sale. [1998 c 295 § 7; 1965 c 74 § 5.]
61.24.060
61.24.060 Rights and remedies of trustee's sale purchaser. The purchaser at the trustee's sale shall be entitled to
possession of the property on the twentieth day following the
sale, as against the grantor under the deed of trust and anyone
having an interest junior to the deed of trust, including occupants and tenants, who were given all of the notices to which
they were entitled under this chapter. The purchaser shall also
have a right to the summary proceedings to obtain possession
of real property provided in chapter 59.12 RCW. [1998 c 295
§ 8; 1967 c 30 § 2; 1965 c 74 § 6.]
61.24.070
61.24.070 Trustee's sale, who may bid at—If beneficiary is purchaser—If purchaser is not beneficiary. (1)
The trustee may not bid at the trustee's sale. Any other person, including the beneficiary, may bid at the trustee's sale.
(2) The trustee shall, at the request of the beneficiary,
credit toward the beneficiary's bid all or any part of the monetary obligations secured by the deed of trust. If the benefi[Title 61 RCW—page 11]
61.24.080
Title 61 RCW: Mortgages, Deeds of Trust, and Real Estate Contracts
ciary is the purchaser, any amount bid by the beneficiary in
excess of the amount so credited shall be paid to the trustee in
the form of cash, certified check, cashier's check, money
order, or funds received by verified electronic transfer, or any
combination thereof. If the purchaser is not the beneficiary,
the entire bid shall be paid to the trustee in the form of cash,
certified check, cashier's check, money order, or funds
received by verified electronic transfer, or any combination
thereof. [1998 c 295 § 9; 1965 c 74 § 7.]
61.24.080
61.24.080 Disposition of proceeds of sale—Notices—
Surplus funds. The trustee shall apply the proceeds of the
sale as follows:
(1) To the expense of sale, including a reasonable charge
by the trustee and by his or her attorney: PROVIDED, That
the aggregate of the charges by the trustee and his or her
attorney, for their services in the sale, shall not exceed the
amount which would, by the superior court of the county in
which the trustee's sale occurred, have been deemed a reasonable attorney fee, had the trust deed been foreclosed as a
mortgage in a noncontested action in that court;
(2) To the obligation secured by the deed of trust; and
(3) The surplus, if any, less the clerk's filing fee, shall be
deposited, together with written notice of the amount of the
surplus, a copy of the notice of trustee's sale, and an affidavit
of mailing as provided in this subsection, with the clerk of the
superior court of the county in which the sale took place. The
trustee shall mail copies of the notice of the surplus, the
notice of trustee's sale, and the affidavit of mailing to each
party to whom the notice of trustee's sale was sent pursuant to
RCW 61.24.040(1). The clerk shall index such funds under
the name of the grantor as set out in the recorded notice.
Upon compliance with this subsection, the trustee shall be
discharged from all further responsibilities for the surplus.
Interests in, or liens or claims of liens against the property
eliminated by sale under this section shall attach to the surplus in the order of priority that it had attached to the property. A party seeking disbursement of the surplus funds shall
file a motion requesting disbursement in the superior court
for the county in which the surplus funds are deposited.
Notice of the motion shall be personally served upon, or
mailed in the manner specified in RCW 61.24.040(1)(b), to
all parties to whom the trustee mailed notice of the surplus,
and any other party who has entered an appearance in the proceeding, not less than twenty days prior to the hearing of the
motion. The clerk shall not disburse such surplus except upon
order of the superior court of such county. [1998 c 295 § 10;
1981 c 161 § 5; 1967 c 30 § 3; 1965 c 74 § 8.]
61.24.090
61.24.090 Curing defaults before sale—Discontinuance of proceedings—Notice of discontinuance—Execution and acknowledgment—Payments tendered to
trustee. (1) At any time prior to the eleventh day before the
date set by the trustee for the sale in the recorded notice of
sale, or in the event the trustee continues the sale pursuant to
RCW 61.24.040(6), at any time prior to the eleventh day
before the actual sale, the borrower, grantor, any guarantor,
any beneficiary under a subordinate deed of trust, or any person having a subordinate lien or encumbrance of record on
the trust property or any part thereof, shall be entitled to cause
[Title 61 RCW—page 12]
a discontinuance of the sale proceedings by curing the default
or defaults set forth in the notice, which in the case of a
default by failure to pay, shall be by paying to the trustee:
(a) The entire amount then due under the terms of the
deed of trust and the obligation secured thereby, other than
such portion of the principal as would not then be due had no
default occurred, and
(b) The expenses actually incurred by the trustee enforcing the terms of the note and deed of trust, including a reasonable trustee's fee, together with the trustee's reasonable attorney's fees, together with costs of recording the notice of discontinuance of notice of trustee's sale.
(2) Any person entitled to cause a discontinuance of the
sale proceedings shall have the right, before or after reinstatement, to request any court, excluding a small claims court, for
disputes within the jurisdictional limits of that court, to determine the reasonableness of any fees demanded or paid as a
condition to reinstatement. The court shall make such determination as it deems appropriate, which may include an
award to the prevailing party of its costs and reasonable attorneys' fees, and render judgment accordingly. An action to
determine fees shall not forestall any sale or affect its validity.
(3) Upon receipt of such payment the proceedings shall
be discontinued, the deed of trust shall be reinstated and the
obligation shall remain as though no acceleration had taken
place.
(4) In the case of a default which is occasioned by other
than failure to make payments, the person or persons causing
the said default shall pay the expenses incurred by the trustee
and the trustee's fees as set forth in subsection (1)(b) of this
section.
(5) Any person having a subordinate lien of record on the
trust property and who has cured the default or defaults pursuant to this section shall thereafter have included in his lien
all payments made to cure any defaults, including interest
thereon at eight percent per annum, payments made for trustees' costs and fees incurred as authorized, and reasonable
attorney's fees and costs incurred resulting from any judicial
action commenced to enforce his or her rights to advances
under this section.
(6) If the default is cured and the obligation and the deed
of trust reinstated in the manner provided, the trustee shall
properly execute, acknowledge, and cause to be recorded a
notice of discontinuance of trustee's sale under that deed of
trust. A notice of discontinuance of trustee's sale when so
executed and acknowledged is entitled to be recorded and
shall be sufficient if it sets forth a record of the deed of trust
and the auditor's file number under which the deed of trust is
recorded, and a reference to the notice of sale and the auditor's file number under which the notice of sale is recorded,
and a notice that the sale is discontinued.
(7) Any payments required under this section as a condition precedent to reinstatement of the deed of trust shall be
tendered to the trustee in the form of cash, certified check,
cashier's check, money order, or funds received by verified
electronic transfer, or any combination thereof. [1998 c 295
§ 11; 1987 c 352 § 4; 1981 c 161 § 6; 1975 1st ex.s. c 129 §
5; 1967 c 30 § 4; 1965 c 74 § 9.]
(2004 Ed.)
Deeds of Trust
61.24.100
61.24.100 Deficiency judgments—Foreclosure—
Trustee's sale—Application of chapter. (1) Except to the
extent permitted in this section for deeds of trust securing
commercial loans, a deficiency judgment shall not be
obtained on the obligations secured by a deed of trust against
any borrower, grantor, or guarantor after a trustee's sale under
that deed of trust.
(2)(a) Nothing in this chapter precludes an action against
any person liable on the obligations secured by a deed of trust
or any guarantor prior to a notice of trustee's sale being given
pursuant to this chapter or after the discontinuance of the
trustee's sale.
(b) No action under (a) of this subsection precludes the
beneficiary from commencing a judicial foreclosure or
trustee's sale under the deed of trust after the completion or
dismissal of that action.
(3) This chapter does not preclude any one or more of the
following after a trustee's sale under a deed of trust securing
a commercial loan executed after June 11, 1998:
(a)(i) To the extent the fair value of the property sold at
the trustee's sale to the beneficiary or an affiliate of the beneficiary is less than the unpaid obligation secured by the deed
of trust immediately prior to the trustee's sale, an action for a
deficiency judgment against the borrower or grantor, if such
person or persons was timely given the notices under RCW
61.24.040, for (A) any decrease in the fair value of the property caused by waste to the property committed by the borrower or grantor, respectively, after the deed of trust is
granted, and (B) the wrongful retention of any rents, insurance proceeds, or condemnation awards by the borrower or
grantor, respectively, that are otherwise owed to the beneficiary.
(ii) This subsection (3)(a) does not apply to any property
that is occupied by the borrower as its principal residence as
of the date of the trustee's sale;
(b) Any judicial or nonjudicial foreclosures of any other
deeds of trust, mortgages, security agreements, or other security interests or liens covering any real or personal property
granted to secure the obligation that was secured by the deed
of trust foreclosed; or
(c) Subject to this section, an action for a deficiency
judgment against a guarantor if the guarantor is timely given
the notices under RCW 61.24.042.
(4) Any action referred to in subsection (3)(a) and (c) of
this section shall be commenced within one year after the
date of the trustee's sale, or a later date to which the liable
party otherwise agrees in writing with the beneficiary after
the notice of foreclosure is given, plus any period during
which the action is prohibited by a bankruptcy, insolvency,
moratorium, or other similar debtor protection statute. If
there occurs more than one trustee's sale under a deed of trust
securing a commercial loan or if trustee's sales are made pursuant to two or more deeds of trust securing the same commercial loan, the one-year limitation in this section begins on
the date of the last of those trustee's sales.
(5) In any action against a guarantor following a trustee's
sale under a deed of trust securing a commercial loan, the
guarantor may request the court or other appropriate adjudicator to determine, or the court or other appropriate adjudicator may in its discretion determine, the fair value of the property sold at the sale and the deficiency judgment against the
(2004 Ed.)
61.24.100
guarantor shall be for an amount equal to the sum of the total
amount owed to the beneficiary by the guarantor as of the
date of the trustee's sale, less the fair value of the property
sold at the trustee's sale or the sale price paid at the trustee's
sale, whichever is greater, plus interest on the amount of the
deficiency from the date of the trustee's sale at the rate provided in the guaranty, the deed of trust, or in any other contracts evidencing the debt secured by the deed of trust, as
applicable, and any costs, expenses, and fees that are provided for in any contract evidencing the guarantor's liability
for such a judgment. If any other security is sold to satisfy the
same debt prior to the entry of a deficiency judgment against
the guarantor, the fair value of that security, as calculated in
the manner applicable to the property sold at the trustee's
sale, shall be added to the fair value of the property sold at the
trustee's sale as of the date that additional security is foreclosed. This section is in lieu of any right any guarantor
would otherwise have to establish an upset price pursuant to
RCW 61.12.060 prior to a trustee's sale.
(6) A guarantor granting a deed of trust to secure its
guaranty of a commercial loan shall be subject to a deficiency
judgment following a trustee's sale under that deed of trust
only to the extent stated in subsection (3)(a)(i) of this section.
If the deed of trust encumbers the guarantor's principal residence, the guarantor shall be entitled to receive an amount up
to the homestead exemption set forth in RCW 6.13.030, without regard to the effect of RCW 6.13.080(2), from the bid at
the foreclosure or trustee's sale accepted by the sheriff or
trustee prior to the application of the bid to the guarantor's
obligation.
(7) A beneficiary's acceptance of a deed in lieu of a
trustee's sale under a deed of trust securing a commercial loan
exonerates the guarantor from any liability for the debt
secured thereby except to the extent the guarantor otherwise
agrees as part of the deed in lieu transaction.
(8) This chapter does not preclude a beneficiary from
foreclosing a deed of trust in the same manner as a real property mortgage and this section does not apply to such a foreclosure.
(9) Any contract, note, deed of trust, or guaranty may, by
its express language, prohibit the recovery of any portion or
all of a deficiency after the property encumbered by the deed
of trust securing a commercial loan is sold at a trustee's sale.
(10) A trustee's sale under a deed of trust securing a commercial loan does not preclude an action to collect or enforce
any obligation of a borrower or guarantor if that obligation,
or the substantial equivalent of that obligation, was not
secured by the deed of trust.
(11) Unless the guarantor otherwise agrees, a trustee's
sale shall not impair any right or agreement of a guarantor to
be reimbursed by a borrower or grantor for a deficiency judgment against the guarantor.
(12) Notwithstanding anything in this section to the contrary, the rights and obligations of any borrower, grantor, and
guarantor following a trustee's sale under a deed of trust
securing a commercial loan or any guaranty of such a loan
executed prior to June 11, 1998, shall be determined in accordance with the laws existing prior to June 11, 1998. [1998 c
295 § 12; 1990 c 111 § 2; 1965 c 74 § 10.]
[Title 61 RCW—page 13]
61.24.110
Title 61 RCW: Mortgages, Deeds of Trust, and Real Estate Contracts
61.24.110
61.24.110 Reconveyance by trustee. The trustee shall
reconvey all or any part of the property encumbered by the
deed of trust to the person entitled thereto on written request
of the beneficiary, or upon satisfaction of the obligation
secured and written request for reconveyance made by the
beneficiary or the person entitled thereto. [1998 c 295 § 13;
1981 c 161 § 7; 1965 c 74 § 11.]
61.24.120
61.24.120 Other foreclosure provisions preserved.
This chapter shall not supersede nor repeal any other provision now made by law for the foreclosure of security interests
in real property. [1965 c 74 § 12.]
61.24.130
61.24.130 Restraint of sale by trustee—Conditions—
Notice. (1) Nothing contained in this chapter shall prejudice
the right of the borrower, grantor, any guarantor, or any person who has an interest in, lien, or claim of lien against the
property or some part thereof, to restrain, on any proper
ground, a trustee's sale. The court shall require as a condition
of granting the restraining order or injunction that the applicant pay to the clerk of the court the sums that would be due
on the obligation secured by the deed of trust if the deed of
trust was not being foreclosed:
(a) In the case of default in making the periodic payment
of principal, interest, and reserves, such sums shall be the
periodic payment of principal, interest, and reserves paid to
the clerk of the court every thirty days.
(b) In the case of default in making payment of an obligation then fully payable by its terms, such sums shall be the
amount of interest accruing monthly on said obligation at the
nondefault rate, paid to the clerk of the court every thirty
days.
In the case of default in performance of any nonmonetary obligation secured by the deed of trust, the court shall
impose such conditions as it deems just.
In addition, the court may condition granting the
restraining order or injunction upon the giving of security by
the applicant, in such form and amount as the court deems
proper, for the payment of such costs and damages, including
attorneys' fees, as may be later found by the court to have
been incurred or suffered by any party by reason of the
restraining order or injunction. The court may consider, upon
proper showing, the grantor's equity in the property in determining the amount of said security.
(2) No court may grant a restraining order or injunction
to restrain a trustee's sale unless the person seeking the
restraint gives five days notice to the trustee of the time when,
place where, and the judge before whom the application for
the restraining order or injunction is to be made. This notice
shall include copies of all pleadings and related documents to
be given to the judge. No judge may act upon such application unless it is accompanied by proof, evidenced by return of
a sheriff, the sheriff's deputy, or by any person eighteen years
of age or over who is competent to be a witness, that the
notice has been served on the trustee.
(3) If the restraining order or injunction is dissolved after
the date of the trustee's sale set forth in the notice as provided
in RCW 61.24.040(1)(f), the court granting such restraining
order or injunction, or before whom the order or injunction is
returnable, shall, at the request of the trustee, set a new sale
[Title 61 RCW—page 14]
date which shall be not less than forty-five days from the date
of the order dissolving the restraining order. The trustee shall:
(a) Comply with the requirements of RCW 61.24.040(1)
(a) through (f) at least thirty days before the new sale date;
and
(b) Cause a copy of the notice of trustee's sale as provided in RCW 61.24.040(1)(f) to be published in a legal
newspaper in each county in which the property or any part
thereof is situated once between the thirty-fifth and twentyeighth day before the sale and once between the fourteenth
and seventh day before the sale.
(4) If a trustee's sale has been stayed as a result of the filing of a petition in federal bankruptcy court and an order is
entered in federal bankruptcy court granting relief from the
stay or closing or dismissing the case, or discharging the
debtor with the effect of removing the stay, the trustee may
set a new sale date which shall not be less than forty-five days
after the date of the bankruptcy court's order. The trustee
shall:
(a) Comply with the requirements of RCW 61.24.040(1)
(a) through (f) at least thirty days before the new sale date;
and
(b) Cause a copy of the notice of trustee's sale as provided in RCW 61.24.040(1)(f) to be published in a legal
newspaper in each county in which the property or any part
thereof is situated, once between the thirty-fifth and twentyeighth day before the sale and once between the fourteenth
and seventh day before the sale.
(5) Subsections (3) and (4) of this section are permissive
only and do not prohibit the trustee from proceeding with a
trustee's sale following termination of any injunction or stay
on any date to which such sale has been properly continued in
accordance with RCW 61.24.040(6). [1998 c 295 § 14; 1987
c 352 § 5; 1981 c 161 § 8; 1975 1st ex.s. c 129 § 6; 1965 c 74
§ 13.]
61.24.135
61.24.135 Consumer protection act—Unfair or
deceptive acts or practices. It is an unfair or deceptive act
or practice under the consumer protection act, chapter 19.86
RCW, for any person, acting alone or in concert with others,
to offer, or offer to accept or accept from another, any consideration of any type not to bid, or to reduce a bid, at a sale of
property conducted pursuant to a power of sale in a deed of
trust. However, it is not an unfair or deceptive act or practice
for any person, including a trustee, to state that a property
subject to a recorded notice of trustee's sale or subject to a
sale conducted pursuant to this chapter is being sold in an "asis" condition, or for the beneficiary to arrange to provide
financing for a particular bidder or to reach any good faith
agreement with the borrower, grantor, any guarantor, or any
junior lienholder. [1998 c 295 § 15.]
61.24.140
61.24.140 Assignment of rents—Collecting payment
of rent. The beneficiary shall not enforce or attempt to
enforce an assignment of rents by demanding or collecting
rent from a tenant occupying property consisting solely of a
single-family residence, or a condominium, cooperative, or
other dwelling unit in a multiplex or other building containing fewer than five residential units, without first giving the
tenant either a court order authorizing payment of rent to the
(2004 Ed.)
Real Estate Contract Forfeitures
beneficiary or a written consent by the tenant's landlord to the
payment. It is a defense to an eviction based on nonpayment
of rent that the tenant paid the rent due to the beneficiary pursuant to a court order or a landlord's written consent. [1998 c
295 § 16.]
Chapter 61.30 RCW
REAL ESTATE CONTRACT FORFEITURES
Chapter 61.30
Sections
61.30.010
61.30.020
61.30.030
61.30.040
61.30.050
61.30.060
61.30.070
61.30.080
61.30.090
61.30.100
61.30.110
61.30.120
61.30.130
61.30.140
61.30.150
61.30.160
61.30.900
61.30.905
61.30.910
61.30.911
61.30.010
Definitions.
Forfeiture or foreclosure—Notices—Other remedies not limited.
Conditions to forfeiture.
Notices—Persons required to be notified—Recording.
Notices—Form—Method of service.
Notice of intent to forfeit—Declaration of forfeiture—Time
limitations.
Notice of intent to forfeit—Declaration of forfeiture—Contents.
Failure to give required notices.
Acceleration of payments—Cure of default.
Effect of forfeiture.
Forfeiture may be restrained or enjoined.
Sale of property in lieu of forfeiture.
Forfeiture may proceed upon expiration of judicial order—
Court may award attorneys' fees or impose conditions—
Venue.
Action to set aside forfeiture.
False swearing—Penalty—Failure to comply with chapter—
Liability.
Priority of actions under chapter.
Short title.
Severability—1985 c 237.
Effective date—Application—1985 c 237.
Application—1988 c 86.
61.30.010 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Contract" or "real estate contract" means any written
agreement for the sale of real property in which legal title to
the property is retained by the seller as security for payment
of the purchase price. "Contract" or "real estate contract"
does not include earnest money agreements and options to
purchase.
(2) "Cure the default" or "cure" means to perform the
obligations under the contract which are described in the
notice of intent to forfeit and which are in default, to pay the
costs and attorneys' fees prescribed in the contract, and, subject to RCW 61.30.090(1), to make all payments of money
required of the purchaser by the contract which first become
due after the notice of intent to forfeit is given and are due
when cure is tendered.
(3) "Declaration of forfeiture" means the notice
described in RCW 61.30.070(2).
(4) "Forfeit" or "forfeiture" means to cancel the purchaser's rights under a real estate contract and to terminate all
right, title, and interest in the property of the purchaser and of
persons claiming by or through the purchaser, all to the extent
provided in this chapter, because of a breach of one or more
of the purchaser's obligations under the contract. A judicial
foreclosure of a real estate contract as a mortgage shall not be
considered a forfeiture under this chapter.
(5) "Notice of intent to forfeit" means the notice
described in RCW 61.30.070(1).
(2004 Ed.)
61.30.020
(6) "Property" means that portion of the real property
which is the subject of a real estate contract, legal title to
which has not been conveyed to the purchaser.
(7) "Purchaser" means the person denominated in a real
estate contract as the purchaser of the property or an interest
therein or, if applicable, the purchaser's successors or assigns
in interest to all or any part of the property, whether by voluntary or involuntary transfer or transfer by operation of law.
If the purchaser's interest in the property is subject to a proceeding in probate, a receivership, a guardianship, or a proceeding under the federal bankruptcy laws, "purchaser"
means the personal representative, the receiver, the guardian,
the trustee in bankruptcy, or the debtor in possession, as
applicable. However, "purchaser" does not include an
assignee or any other person whose only interest or claim is
in the nature of a lien or other security interest.
(8) "Required notices" means the notice of intent to forfeit and the declaration of forfeiture.
(9) "Seller" means the person denominated in a real
estate contract as the seller of the property or an interest
therein or, if applicable, the seller's successors or assigns in
interest to all or any part of the property or the contract,
whether by voluntary or involuntary transfer or transfer by
operation of law. If the seller's interest in the property is subject to a proceeding in probate, a receivership, a guardianship, or a proceeding under the federal bankruptcy laws,
"seller" means the personal representative, the receiver, the
guardian, the trustee in bankruptcy, or the debtor in possession, as applicable. However, "seller" does not include an
assignee or any other person whose only interest or claim is
in the nature of a lien or other security interest and does not
include an assignee who has not been conveyed legal title to
any portion of the property.
(10) "Time for cure" means the time provided in RCW
61.30.070(1)(e) as it may be extended as provided in this
chapter or any longer period agreed to by the seller. [1988 c
86 § 1; 1985 c 237 § 1.]
61.30.020
61.30.020 Forfeiture or foreclosure—Notices—
Other remedies not limited. (1) A purchaser's rights under
a real estate contract shall not be forfeited except as provided
in this chapter. Forfeiture shall be accomplished by giving
and recording the required notices as specified in this chapter.
This chapter shall not be construed as prohibiting or limiting
any remedy which is not governed or restricted by this chapter and which is otherwise available to the seller or the purchaser. At the seller's option, a real estate contract may be
foreclosed in the manner and subject to the law applicable to
the foreclosure of a mortgage in this state.
(2) The seller's commencement of an action to foreclose
the contract as a mortgage shall not constitute an election of
remedies so as to bar the seller from forfeiting the contract
under this chapter for the same or different breach. Similarly,
the seller's commencement of a forfeiture under this chapter
shall not constitute an election of remedies so as to bar the
seller from foreclosing the contract as a mortgage. However,
the seller shall not maintain concurrently an action to foreclose the contract and a forfeiture under this chapter whether
for the same or different breaches. If, after giving or recording a notice of intent to forfeit, the seller elects to foreclose
the contract as a mortgage, the seller shall record a notice
[Title 61 RCW—page 15]
61.30.030
Title 61 RCW: Mortgages, Deeds of Trust, and Real Estate Contracts
cancelling the notice of intent to forfeit which refers to the
notice of intent by its recording number. Not later than ten
days after the notice of cancellation is recorded, the seller
shall mail or serve copies of the notice of cancellation to each
person who was mailed or served the notice of intent to forfeit, and shall post it in a conspicuous place on the property if
the notice of intent was posted. The seller need not publish
the notice of cancellation. [1988 c 86 § 2; 1985 c 237 § 2.]
61.30.030
61.30.030 Conditions to forfeiture. It shall be a condition to forfeiture of a real estate contract that:
(1) The contract being forfeited, or a memorandum
thereof, is recorded in each county in which any of the property is located;
(2) A breach has occurred in one or more of the purchaser's obligations under the contract and the contract provides that as a result of such breach the seller is entitled to
forfeit the contract; and
(3) Except for petitions for the appointment of a receiver,
no arbitration or judicial action is pending on a claim made
by the seller against the purchaser on any obligation secured
by the contract. [1988 c 86 § 3; 1985 c 237 § 3.]
61.30.040
61.30.040 Notices—Persons required to be notified—
Recording. (1) The required notices shall be given to each
purchaser last known to the seller or the seller's agent or attorney giving the notice and to each person who, at the time the
notice of intent to forfeit is recorded, is the last holder of
record of a purchaser's interest. Failure to comply with this
subsection in any material respect shall render any purported
forfeiture based upon the required notices void.
(2) The required notices shall also be given to each of the
following persons whose interest the seller desires to forfeit if
the default is not cured:
(a) The holders and claimants of record at the time the
notice of intent to forfeit is recorded of any interests in or
liens upon all or any portion of the property derived through
the purchaser or which are otherwise subordinate to the
seller's interest in the property; and
(b) All persons occupying the property at the time the
notice of intent to forfeit is recorded and whose identities are
reasonably discoverable by the seller.
Any forfeiture based upon the required notices shall be
void as to each person described in this subsection (2) to
whom the notices are not given in accordance with this chapter in any material respect.
(3) The required notices shall also be given to each person who at the time the notice of intent to forfeit is recorded
has recorded in each county in which any of the property is
located a request to receive the required notices, which
request (a) identifies the contract being forfeited by reference
to its date, the original parties thereto, and a legal description
of the property; (b) contains the name and address for notice
of the person making the request; and (c) is executed and
acknowledged by the requesting person.
(4) Except as otherwise provided in the contract or other
agreement with the seller and except as otherwise provided in
this section, the seller shall not be required to give any
required notice to any person whose interest in the property is
not of record or if such interest is first acquired after the time
[Title 61 RCW—page 16]
the notice of intent to forfeit is recorded. Subject to subsection (5) of this section, all such persons hold their interest
subject to the potential forfeiture described in the recorded
notice of intent to forfeit and shall be bound by any forfeiture
made pursuant thereto as permitted in this chapter as if the
required notices were given to them.
(5) Before the commencement of the time for cure, the
notice of intent to forfeit shall be recorded in each county in
which any of the property is located. The notice of intent to
forfeit shall become ineffective for all purposes one year after
the expiration of the time for cure stated in such notice or in
any recorded extension thereof executed by the seller or the
seller's agent or attorney unless, prior to the end of that year,
the declaration of forfeiture based on such notice or a lis pendens incident to an action under this chapter is recorded. The
time for cure may not be extended in increments of more than
one year each, and extensions stated to be for more than one
year or for an unstated or indefinite period shall be deemed to
be for one year for the purposes of this subsection. Recording
a lis pendens when a notice of intent to forfeit is effective
shall cause such notice to continue in effect until the later of
one year after the expiration of the time for cure or thirty days
after final disposition of the action evidenced by the lis pendens.
(6) The declaration of forfeiture shall be recorded in each
county in which any of the property is located after the time
for cure has expired without the default having been cured.
[1988 c 86 § 4; 1985 c 237 § 4.]
61.30.050
61.30.050 Notices—Form—Method of service. (1)
The required notices shall be given in writing. The notice of
intent to forfeit shall be signed by the seller or by the seller's
agent or attorney. The declaration of forfeiture shall be
signed and sworn to by the seller. The seller may execute the
declaration of forfeiture through an agent under a power of
attorney which is of record at the time the declaration of forfeiture is recorded, but in so doing the seller shall be subject
to liability under RCW 61.30.150 to the same extent as if the
seller had personally signed and sworn to the declaration.
(2) The required notices shall be given:
(a) In any manner provided in the contract or other agreement with the seller; and
(b) By either personal service in the manner required for
civil actions in any county in which any of the property is
located or by mailing a copy to the person for whom it is
intended, postage prepaid, by certified or registered mail with
return receipt requested and by regular first class mail,
addressed to the person at the person's address last known to
the seller or the seller's agent or attorney giving the notice.
For the purposes of this subsection, the seller or the seller's
agent or attorney giving the notice may rely upon the address
stated in any recorded document which entitles a person to
receive the required notices unless the seller or the seller's
agent or attorney giving the notice knows such address to be
incorrect.
If the address or identity of a person for whom the
required notices are intended is not known to or reasonably
discoverable at the time the notice is given by the seller or the
seller's agent or attorney giving the notice, the required
notices shall be given to such person by posting a copy in a
conspicuous place on the property and publishing a copy
(2004 Ed.)
Real Estate Contract Forfeitures
thereof. The notice shall be directed to the attention of all persons for whom the notice is intended, including the names of
the persons, if so known or reasonably discoverable. The
publication shall be made in a newspaper approved pursuant
to RCW 65.16.040 and published in each county in which
any of the property is located or, if no approved newspaper is
published in the county, in an adjoining county, and if no
approved newspaper is published in the county or adjoining
county, then in an approved newspaper published in the capital of the state. The notice of intent to forfeit shall be published once a week for two consecutive weeks. The declaration of forfeiture shall be published once. [1988 c 86 § 5;
1985 c 237 § 5.]
61.30.060
61.30.060 Notice of intent to forfeit—Declaration of
forfeiture—Time limitations. The notice of intent to forfeit
shall be given not later than ten days after it is recorded. The
declaration of forfeiture shall be given not later than three
days after it is recorded. Either required notice may be given
before it is recorded, but the declaration of forfeiture may not
be given before the time for cure has expired. Notices which
are served or mailed are given for the purposes of this section
when served or mailed. Notices which must be posted and
published as provided in RCW 61.30.050(2)(b) are given for
the purposes of this section when both posted and first published. [1988 c 86 § 6; 1985 c 237 § 6.]
61.30.070
61.30.070 Notice of intent to forfeit—Declaration of
forfeiture—Contents. (1) The notice of intent to forfeit
shall contain the following:
(a) The name, address, and telephone number of the
seller and, if any, the seller's agent or attorney giving the
notice;
(b) A description of the contract, including the names of
the original parties to the contract, the date of the contract,
and the recording number of the contract or memorandum
thereof;
(c) A legal description of the property;
(d) A description of each default under the contract on
which the notice is based;
(e) A statement that the contract will be forfeited if all
defaults are not cured by a date stated in the notice which is
not less than ninety days after the notice of intent to forfeit is
recorded or any longer period specified in the contract or
other agreement with the seller;
(f) A statement of the effect of forfeiture, including, to
the extent applicable that: (i) All right, title, and interest in
the property of the purchaser and, to the extent elected by the
seller, of all persons claiming through the purchaser or whose
interests are otherwise subordinate to the seller's interest in
the property shall be terminated; (ii) the purchaser's rights
under the contract shall be canceled; (iii) all sums previously
paid under the contract shall belong to and be retained by the
seller or other person to whom paid and entitled thereto; (iv)
all of the purchaser's rights in all improvements made to the
property and in unharvested crops and timber thereon shall
belong to the seller; and (v) the purchaser and all other persons occupying the property whose interests are forfeited
shall be required to surrender possession of the property,
(2004 Ed.)
61.30.070
improvements, and unharvested crops and timber to the seller
ten days after the declaration of forfeiture is recorded;
(g) An itemized statement or, to the extent not known at
the time the notice of intent to forfeit is given or recorded, a
reasonable estimate of all payments of money in default and,
for defaults not involving the failure to pay money, a statement of the action required to cure the default;
(h) An itemized statement of all other payments, charges,
fees, and costs, if any, or, to the extent not known at the time
the notice of intent is given or recorded, a reasonable estimate
thereof, that are or may be required to cure the defaults;
(i) A statement that the person to whom the notice is
given may have the right to contest the forfeiture, or to seek
an extension of time to cure the default if the default does not
involve a failure to pay money, or both, by commencing a
court action by filing and serving the summons and complaint before the declaration of forfeiture is recorded;
(j) A statement that the person to whom the notice is
given may have the right to request a court to order a public
sale of the property; that such public sale will be ordered only
if the court finds that the fair market value of the property
substantially exceeds the debt owed under the contract and
any other liens having priority over the seller's interest in the
property; that the excess, if any, of the highest bid at the sale
over the debt owed under the contract will be applied to the
liens eliminated by the sale and the balance, if any, paid to the
purchaser; that the court will require the person who requests
the sale to deposit the anticipated sale costs with the clerk of
the court; and that any action to obtain an order for public sale
must be commenced by filing and serving the summons and
complaint before the declaration of forfeiture is recorded;
(k) A statement that the seller is not required to give any
person any other notice of default before the declaration
which completes the forfeiture is given, or, if the contract or
other agreement requires such notice, the identification of
such notice and a statement of to whom, when, and how it is
required to be given; and
(l) Any additional information required by the contract
or other agreement with the seller.
(2) If the default is not cured before the time for cure has
expired, the seller may forfeit the contract by giving and
recording a declaration of forfeiture which contains the following:
(a) The name, address, and telephone number of the
seller;
(b) A description of the contract, including the names of
the original parties to the contract, the date of the contract,
and the recording number of the contract or memorandum
thereof;
(c) A legal description of the property;
(d) To the extent applicable, a statement that all the purchaser's rights under the contract are canceled and all right,
title, and interest in the property of the purchaser and of all
persons claiming an interest in all or any portion of the property through the purchaser or which is otherwise subordinate
to the seller's interest in the property are terminated except to
the extent otherwise stated in the declaration of forfeiture as
to persons or claims named, identified, or described;
(e) To the extent applicable, a statement that all persons
whose rights in the property have been terminated and who
are in or come into possession of any portion of the property
[Title 61 RCW—page 17]
61.30.080
Title 61 RCW: Mortgages, Deeds of Trust, and Real Estate Contracts
(including improvements and unharvested crops and timber)
are required to surrender such possession to the seller not
later than a specified date, which shall not be less than ten
days after the declaration of forfeiture is recorded or such
longer period provided in the contract or other agreement
with the seller;
(f) A statement that the forfeiture was conducted in compliance with all requirements of this chapter in all material
respects and applicable provisions of the contract;
(g) A statement that the purchaser and any person claiming any interest in the purchaser's rights under the contract or
in the property who are given the notice of intent to forfeit
and the declaration of forfeiture have the right to commence
a court action to set the forfeiture aside by filing and serving
the summons and complaint within sixty days after the date
the declaration of forfeiture is recorded if the seller did not
have the right to forfeit the contract or fails to comply with
this chapter in any material respect; and
(h) Any additional information required by the contract
or other agreement with the seller.
(3) The seller may include in either or both required
notices any additional information the seller elects to include
which is consistent with this chapter and with the contract or
other agreement with the seller. [1988 c 86 § 7; 1985 c 237 §
7.]
61.30.080
61.30.080 Failure to give required notices. (1) If the
seller fails to give any required notice within the time
required by this chapter, the seller may record and give a subsequent notice of intent to forfeit or declaration of forfeiture,
as applicable. Any such subsequent notice shall (a) include
revised dates and information to the extent necessary to conform to this chapter as if the superseded notice had not been
given or recorded; (b) state that it supersedes the notice being
replaced; and (c) render void the previous notice which it
replaces.
(2) If the seller fails to give the notice of intent to forfeit
to all persons whose interests the seller desires to forfeit or to
record such notice as required by this chapter, and if the declaration of forfeiture has not been given or recorded, the
seller may give and record a new set of notices as required by
this chapter. However, the new notices shall contain a statement that they supersede and replace the earlier notices and
shall provide a new time for cure.
(3) If the seller fails to give any required notice to all persons whose interests the seller desires to forfeit or to record
such notice as required by this chapter, and if the declaration
of forfeiture has been given or recorded, the seller may apply
for a court order setting aside the forfeiture previously made,
and to the extent such order is entered, the seller may proceed
as if no forfeiture had been commenced. However, no such
order may be obtained without joinder and service upon the
persons who were given the required notices and all other
persons whose interests the seller desires to forfeit. [1988 c
86 § 8; 1985 c 237 § 8.]
61.30.090
61.30.090 Acceleration of payments—Cure of
default. (1) Even if the contract contains a provision allowing the seller, because of a default in the purchaser's obligations under the contract, to accelerate the due date of some or
[Title 61 RCW—page 18]
all payments to be made or other obligations to be performed
by the purchaser under the contract, the seller may not require
payment of the accelerated payments or performance of the
accelerated obligations as a condition to curing the default in
order to avoid forfeiture except to the extent the payments or
performance would be due without the acceleration. This
subsection shall not apply to an acceleration because of a
transfer, encumbrance, or conveyance of any or all of the purchaser's interest in any portion or all of the property if the
contract being forfeited contains a provision accelerating the
unpaid balance because of such transfer, encumbrance, or
conveyance and such provision is enforceable under applicable law.
(2) All persons described in RCW 61.30.040 (1) and (2),
regardless of whether given the notice of intent to forfeit, and
any guarantor of or any surety for the purchaser's performance may cure the default. These persons may cure the
default at any time before expiration of the time for cure and
may act alone or in any combination. Any person having a
lien of record against the property which would be eliminated
in whole or in part by the forfeiture and who cures the purchaser's default pursuant to this section shall have included in
its lien all payments made to effect such cure, including interest thereon at the rate specified in or otherwise applicable to
the obligations secured by such lien.
(3) The seller may, but shall not be required to, accept
tender of cure after the expiration of the time for cure and
before the declaration of forfeiture is recorded. The seller
may accept a partial cure. If the tender of such partial cure to
the seller or the seller's agent or attorney is not accompanied
by a written statement of the person making the tender
acknowledging that such payment or other action does not
fully cure the default, the seller shall notify such person in
writing of the insufficiency and the amount or character
thereof, which notice shall include an offer to refund any partial tender of money paid to the seller or the seller's agent or
attorney upon written request. The notice of insufficiency
may state that, by statute, such request must be made by a
specified date, which date may not be less than ninety days
after the notice of insufficiency is served or mailed. The
request must be made in writing and delivered or mailed to
the seller or the person who gave the notice of insufficiency
or the notice of intent to forfeit and, if the notice of insufficiency properly specifies a date by which such request must
be made, by the date so specified. The seller shall refund such
amount promptly following receipt of such written request, if
timely made, and the seller shall be liable to the person to
whom such amount is due for that person's reasonable attorneys' fees and other costs incurred in an action brought to
recover such amount in which such refund or any portion
thereof is found to have been improperly withheld. If the
seller's written notice of insufficiency is not given to the person making the tender at least ten days before the expiration
of the time for cure, then regardless of whether the tender is
accepted the time for cure shall be extended for ten days from
the date the seller's written notice of insufficiency is given.
The seller shall not be required to extend the time for cure
more than once even though more than one insufficient tender is made.
(4) Except as provided in this subsection, a timely tender
of cure shall reinstate the contract. If a default that entitles the
(2004 Ed.)
Real Estate Contract Forfeitures
seller to forfeit the contract is not described in a notice of
intent to forfeit previously given and the seller gives a notice
of intent to forfeit concerning that default, timely cure of a
default described in a previous notice of intent to forfeit shall
not limit the effect of the subsequent notice.
(5) If the default is cured and a fulfillment deed is not
given to the purchaser, the seller or the seller's agent or attorney shall sign, acknowledge, record, and deliver or mail to
the purchaser and, if different, the person who made the tender a written statement that the contract is no longer subject
to forfeiture under the notice of intent to forfeit previously
given, referring to the notice of intent to forfeit by its recording number. A seller who fails within thirty days of written
demand to give and record the statement required by this subsection, if such demand specifies the penalties in this subsection, is liable to the person who cured the default for the
greater of five hundred dollars or actual damages, if any, and
for reasonable attorneys' fees and other costs incurred in an
action to recover such amount or damages.
(6) Any person curing or intending to cure any default
shall have the right to request any court of competent jurisdiction to determine the reasonableness of any attorneys' fees
which are included in the amount required to cure, and in
making such determination the court may award the prevailing party its reasonable attorneys' fees and other costs
incurred in the action. An action under this subsection shall
not forestall any forfeiture or affect its validity. [1988 c 86 §
9; 1985 c 237 § 9.]
61.30.100 Effect of forfeiture. (1) The recorded and
sworn declaration of forfeiture shall be prima facie evidence
of the extent of the forfeiture and compliance with this chapter and, except as otherwise provided in RCW 61.30.040 (1)
and (2), conclusive evidence thereof in favor of bona fide
purchasers and encumbrancers for value.
(2) Except as otherwise provided in this chapter or the
contract or other agreement with the seller, forfeiture of a
contract under this chapter shall have the following effects:
(a) The purchaser, and all persons claiming through the
purchaser or whose interests are otherwise subordinate to the
seller's interest in the property who were given the required
notices pursuant to this chapter, shall have no further rights in
the contract or the property and no person shall have any
right, by statute or otherwise, to redeem the property;
(b) All sums previously paid under the contract by or on
behalf of the purchaser shall belong to and be retained by the
seller or other person to whom paid; and
(c) All of the purchaser's rights in all improvements
made to the property and in unharvested crops and timber
thereon at the time the declaration of forfeiture is recorded
shall be forfeited to the seller.
(3) The seller shall be entitled to possession of the property ten days after the declaration of forfeiture is recorded or
any longer period provided in the contract or any other agreement with the seller. The seller may proceed under chapter
59.12 RCW to obtain such possession. Any person in possession who fails to surrender possession when required shall be
liable to the seller for actual damages caused by such failure
and for reasonable attorneys' fees and costs of the action.
(4) After the declaration of forfeiture is recorded, the
seller shall have no claim against and the purchaser shall not
61.30.100
(2004 Ed.)
61.30.120
be liable to the seller for any portion of the purchase price
unpaid or for any other breach of the purchaser's obligations
under the contract, except for damages caused by waste to the
property to the extent such waste results in the fair market
value of the property on the date the declaration of forfeiture
is recorded being less than the unpaid monetary obligations
under the contract and all liens or contracts having priority
over the seller's interest in the property. [1988 c 86 § 10;
1985 c 237 § 10.]
61.30.110
61.30.110 Forfeiture may be restrained or enjoined.
(1) The forfeiture may be restrained or enjoined or the time
for cure may be extended by court order only as provided in
this section. A certified copy of any restraining order or
injunction may be recorded in each county in which any part
of the property is located.
(2) Any person entitled to cure the default may bring or
join in an action under this section. No other person may
bring such an action without leave of court first given for
good cause shown. Any such action shall be commenced by
filing and serving the summons and complaint before the
declaration of forfeiture is recorded. Service shall be made
upon the seller or the seller's agent or attorney, if any, who
gave the notice of intent to forfeit. Concurrently with commencement of the action, the person bringing the action shall
record a lis pendens in each county in which any part of the
property is located. A court may preliminarily enjoin the giving and recording of the declaration of forfeiture upon a
prima facie showing of the grounds set forth in this section
for a permanent injunction. If the court issues an order
restraining or enjoining the forfeiture then until such order
expires or is vacated or the court otherwise permits the seller
to proceed with the forfeiture, the declaration of forfeiture
shall not be given or recorded. However, the commencement
of the action shall not of itself extend the time for cure.
(3) The forfeiture may be permanently enjoined only
when the person bringing the action proves that there is no
default as claimed in the notice of intent to forfeit or that the
purchaser has a claim against the seller which releases, discharges, or excuses the default claimed in the notice of intent
to forfeit, including by offset, or that there exists any material
noncompliance with this chapter. The time for cure may be
extended only when the default alleged is other than the failure to pay money, the nature of the default is such that it cannot practically be cured within the time stated in the notice of
intent to forfeit, action has been taken and is diligently being
pursued which would cure the default, and any person entitled to cure is ready, willing, and able to timely perform all of
the purchaser's other contract obligations. [1988 c 86 § 11;
1985 c 237 § 11.]
61.30.120
61.30.120 Sale of property in lieu of forfeiture. (1)
Except for a sale ordered incident to foreclosure of the contract as a mortgage, a public sale of the property in lieu of the
forfeiture may be ordered by the court only as provided in
this section. Any person entitled to cure the default may bring
or join in an action seeking an order of public sale in lieu of
forfeiture. No other person may bring such an action without
leave of court first given for good cause shown.
[Title 61 RCW—page 19]
61.30.120
Title 61 RCW: Mortgages, Deeds of Trust, and Real Estate Contracts
(2) An action under this section shall be commenced by
filing and serving the summons and complaint before the
declaration of forfeiture is recorded. Service shall be made
upon the seller or the seller's agent or attorney, if any, who
gave the notice of intent to forfeit. Concurrently with commencement of the action, the person bringing the action shall
record a lis pendens in each county in which any part of the
property is located. After the commencement of an action
under this section and before its dismissal, the denial of a
request for a public sale, or the vacation or expiration of an
order for a public sale, the declaration of forfeiture shall not
be given or recorded. However, commencement of the action
shall not of itself extend the time for cure.
(3) If the court finds the then fair market value of the
property substantially exceeds the unpaid and unperformed
obligations secured by the contract and any other liens having
priority over the seller's interest in the property, the court may
require the property to be sold after the expiration of the time
for cure in whole or in parcels to pay the costs of the sale and
satisfy the amount the seller is entitled to be paid from the
sale proceeds. Such sale shall be for cash to the highest bidder
at a public sale by the sheriff at a courthouse of the county in
which the property or any contiguous or noncontiguous portion thereof is located. The order requiring a public sale of the
property shall specify the amount which the seller is entitled
to be paid from the sale proceeds, which shall include all
sums unpaid under the contract, irrespective of the due dates
thereof, and such other costs and expenses to which the seller
is entitled as a result of the purchaser's default under the contract, subject to any offsets or damages to which the purchaser is entitled. The order shall require any person requesting the sale to deposit with the clerk of the court, or such
other person as the court may direct, the amount the court
finds will be necessary to pay all of the costs and expenses of
advertising and conducting the sale, including the notices to
be given under subsections (4) and (5) of this section. The
court shall require such deposit to be made within seven days,
and if not so made the court shall vacate its order of sale.
Except as provided in subsections (6) and (8) of this section,
the sale shall eliminate the interests of the persons given the
notice of intent to forfeit to the same extent that such interests
would have been eliminated had the seller's forfeiture been
effected pursuant to such notice.
(4) The sheriff shall endorse upon the order the time and
date when the sheriff receives it and shall forthwith post and
publish the notice of sale specified in this subsection and sell
the property, or so much thereof as may be necessary to discharge the amount the seller is entitled to be paid as specified
in the court's order of sale. The notice of sale shall be printed
or typed and contain the following information:
(a) A statement that the court has directed the sheriff to
sell the property described in the notice of sale and the
amount the seller is entitled to be paid from the sale proceeds
as specified in the court's order;
(b) The caption, cause number, and court in which the
order was entered;
(c) A legal description of the property to be sold, including the street address if any;
(d) The date and recording number of the contract;
(e) The scheduled date, time, and place of the sale;
[Title 61 RCW—page 20]
(f) If the time for cure has not expired, the date it will
expire and that the purchaser and other persons authorized to
cure have the right to avoid the sale ordered by the court by
curing the defaults specified in the notice of intent to forfeit
before the time for cure expires;
(g) The right of the purchaser to avoid the sale ordered
by the court by paying to the sheriff, at any time before the
sale, in cash, the amount which the seller would be entitled to
be paid from the proceeds of the sale, as specified in the
court's order; and
(h) A statement that unless otherwise provided in the
contract between seller and purchaser or other agreement
with the seller, no person shall have any right to redeem the
property sold at the sale.
The notice of sale shall be given by posting a copy
thereof for a period of not less than four weeks prior to the
date of sale in three public places in each county in which the
property or any portion thereof is located, one of which shall
be at the front door of the courthouse for the superior court of
each such county, and one of which shall be placed in a conspicuous place on the property. Additionally, the notice of
sale shall be published once a week for two consecutive
weeks in the newspaper or newspapers prescribed for published notices in RCW 61.30.050(2)(b). The sale shall be
scheduled to be held not more than seven days after the expiration of (i) the periods during which the notice of sale is
required to be posted and published or (ii) the time for cure,
whichever is later; however, the seller may, but shall not be
required to, permit the sale to be scheduled for a later date.
Upon the completion of the sale, the sheriff shall deliver a
sheriff's deed to the property sold to the successful bidder.
(5) Within seven days following the date the notice of
sale is posted on the property, the seller shall, by the means
described in RCW 61.30.050(2), give a copy of the notice of
sale to all persons who were given the notice of intent to forfeit, except the seller need not post or publish the notice of
sale.
(6) Any person may bid at the sale. If the purchaser is the
successful bidder, the sale shall not affect any interest in the
property which is subordinate to the contract. If the seller is
the successful bidder, the seller may offset against the price
bid the amount the seller is entitled to be paid as specified in
the court's order. Proceeds of such sale shall be first applied
to any costs and expenses of sale incurred by the sheriff and
the seller in excess of the deposit referred to in subsection (3)
of this section, and next to the amount the seller is entitled to
be paid as specified in the court's order. Any proceeds in
excess of the amount necessary to pay such costs, expenses
and amount, less the clerk's filing fee, shall be deposited with
the clerk of the superior court of the county in which the sale
took place, unless such surplus is less than the clerk's filing
fee, in which event such excess shall be paid to the purchaser.
The clerk shall index such funds under the name of the purchaser. Interests in or liens or claims of liens against the property eliminated by the sale shall attach to such surplus in the
order of priority that they had attached to the property. The
clerk shall not disburse the surplus except upon order of the
superior court of such county, which order shall not be
entered less than ten days following the deposit of the funds
with the clerk.
(2004 Ed.)
Real Estate Contract Forfeitures
(7) In addition to the right to cure the default within the
time for cure, the purchaser shall have the right to satisfy its
obligations under the contract and avoid any public sale
ordered by the court by paying to the sheriff, at any time
before the sale, in cash, the amount which the seller would be
entitled to be paid from the proceeds of the sale as specified
in the court's order plus the amount of any costs and expenses
of the sale incurred by the sheriff and the seller in excess of
the deposit referred to in subsection (3) of this section. If the
purchaser satisfies its obligations as provided in this subsection, the seller shall deliver its fulfillment deed to the purchaser.
(8) Unless otherwise provided in the contract or other
agreement with the seller, after the public sale provided in
this section no person shall have any right, by statute or otherwise, to redeem the property and, subject to the rights of
persons unaffected by the sale, the purchaser at the public
sale shall be entitled to possession of the property ten days
after the date of the sale and may proceed under chapter 59.12
RCW to obtain such possession.
(9) A public sale effected under this section shall satisfy
the obligations secured by the contract, regardless of the sale
price or fair value, and no deficiency decree or other judgment may thereafter be obtained on such obligations. [1988
c 86 § 12; 1985 c 237 § 12.]
61.30.130
61.30.130 Forfeiture may proceed upon expiration of
judicial order—Court may award attorneys' fees or
impose conditions—Venue. (1) If an order restraining or
enjoining the forfeiture or an order of sale under RCW
61.30.120 expires or is dissolved or vacated at least ten days
before expiration of the time for cure, the seller may proceed
with the forfeiture under this chapter if the default is not
cured at the end of the time for cure. If any such order expires
or is dissolved or vacated or such other final disposition is
made at any time later than stated in the first sentence of this
subsection, the seller may proceed with the forfeiture under
this chapter if the default is not cured, except the time for cure
shall be extended for ten days after the final disposition or the
expiration of, or entry of the order dissolving or vacating, the
order.
(2) In actions under RCW 61.30.110 and 61.30.120, the
court may award reasonable attorneys' fees and costs of the
action to the prevailing party, except for such fees and costs
incurred by a person requesting a public sale of the property.
(3) In actions under RCW 61.30.110 and 61.30.120, on
the seller's motion the court may (a) require the person commencing the action to provide a bond or other security against
all or a portion of the seller's damages and (b) impose other
conditions, the failure of which may be cause for entry of an
order dismissing the action and dissolving or vacating any
restraining order, injunction, or other order previously
entered.
(4) Actions under RCW 61.30.110, 61.30.120, or
61.30.140 shall be brought in the superior court of the county
where the property is located or, if the property is located in
more than one county, then in any of such counties, regardless of whether the property is contiguous or noncontiguous.
[1988 c 86 § 13; 1985 c 237 § 13.]
(2004 Ed.)
61.30.150
61.30.140
61.30.140 Action to set aside forfeiture. (1) An action
to set aside a forfeiture not otherwise void under RCW
61.30.040(1) may be commenced only after the declaration
of forfeiture has been recorded and only as provided in this
section, and regardless of whether an action was previously
commenced under RCW 61.30.110.
(2) An action to set aside the forfeiture permitted by this
section may be commenced only by a person entitled to be
given the required notices under RCW 61.30.040 (1) and (2).
For all persons given the required notices in accordance with
this chapter, such an action shall be commenced by filing and
serving the summons and complaint not later than sixty days
after the declaration of forfeiture is recorded. Service shall be
made upon the seller or the seller's attorney in fact, if any,
who signed the declaration of forfeiture. Concurrently with
commencement of the action, the person bringing the action
shall record a lis pendens in each county in which any part of
the property is located.
(3) The court may require that all payments specified in
the notice of intent shall be paid to the clerk of the court as a
condition to maintaining an action to set aside the forfeiture.
All payments falling due during the pendency of the action
shall be paid to the clerk of the court when due. These payments shall be calculated without regard to any acceleration
provision in the contract (except an acceleration because of a
transfer, encumbrance, or conveyance of the purchaser's
interest in the property when otherwise enforceable) and
without regard to the seller's contention the contract has been
duly forfeited and shall not include the seller's costs and fees
of the forfeiture. The court may make orders regarding the
investment or disbursement of these funds and may authorize
payments to third parties instead of the clerk of the court.
(4) The forfeiture shall not be set aside unless (a) the
rights of bona fide purchasers for value and of bona fide
encumbrancers for value of the property would not thereby be
adversely affected and (b) the person bringing the action
establishes that the seller was not entitled to forfeit the contract at the time the seller purported to do so or that the seller
did not materially comply with the requirements of this chapter.
(5) If the purchaser or other person commencing the
action establishes a right to set aside the forfeiture, the court
shall award the purchaser or other person commencing the
action actual damages, if any, and may award the purchaser
or other person its reasonable attorneys' fees and costs of the
action. If the court finds that the forfeiture was conducted in
compliance with this chapter, the court shall award the seller
actual damages, if any, and may award the seller its reasonable attorneys' fees and costs of the action.
(6) The seller is entitled to possession of the property and
to the rents, issues, and profits thereof during the pendency of
an action to set aside the forfeiture: PROVIDED, That the
court may provide that possession of the property be delivered to or retained by the purchaser or some other person and
may make other provisions for the rents, issues, and profits.
[1988 c 86 § 14; 1985 c 237 § 14.]
61.30.150
61.30.150 False swearing—Penalty—Failure to comply with chapter—Liability. (1) Whoever knowingly
swears falsely to any statement required by this chapter to be
[Title 61 RCW—page 21]
61.30.160
Title 61 RCW: Mortgages, Deeds of Trust, and Real Estate Contracts
sworn is guilty of perjury and shall be liable for the statutory
penalties therefor.
(2) A seller who records a declaration of forfeiture with
actual knowledge or reason to know of a material failure to
comply with any requirement of this chapter is liable to any
person whose interest in the property or the contract, or both,
has been forfeited without material compliance with this
chapter for actual damages and actual attorneys' fees and
costs of the action and, in the court's discretion, exemplary
damages. [1988 c 86 § 15; 1985 c 237 § 15.]
61.30.160
61.30.160 Priority of actions under chapter. An
action brought under RCW 61.30.110, 61.30.120, or
61.30.140 shall take precedence over all other civil actions
except those described in RCW 59.12.130. [1985 c 237 §
16.]
61.30.900
61.30.900 Short title. This chapter may be known and
cited as the real estate contract forfeiture act. [1985 c 237 §
17.]
61.30.905
61.30.905 Severability—1985 c 237. If any provision
of this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1985 c 237 § 19.]
61.30.910
61.30.910 Effective date—Application—1985 c 237.
This act shall take effect January 1, 1986, and shall apply to
all real estate contract forfeitures initiated on or after that
date, regardless of when the real estate contract was made.
[1985 c 237 § 21.]
61.30.911 Application—1988 c 86. This act applies to
all real estate contract forfeitures initiated on or after June 9,
1988, regardless of when the real estate contract was made.
[1988 c 86 § 16.]
61.30.911
Chapter 61.34
Chapter 61.34 RCW
EQUITY SKIMMING
Sections
61.34.010
61.34.020
61.34.030
61.34.040
61.34.900
Legislative findings.
Definitions.
Criminal penalty.
Application of consumer protection act.
Severability—1988 c 33.
61.34.010 Legislative findings. The legislature finds
that persons are engaging in patterns of conduct which
defraud innocent homeowners of their equity interest or other
value in residential dwellings under the guise of a purchase of
the owner's residence but which is in fact a device to convert
the owner's equity interest or other value in the residence to
an equity skimmer, who fails to make payments, diverts the
equity or other value to the skimmer's benefit, and leaves the
innocent homeowner with a resulting financial loss or debt.
The legislature further finds this activity of equity skimming to be contrary to the public policy of this state and
therefore establishes the crime of equity skimming to address
this form of real estate fraud and abuse. [1988 c 33 § 1.]
61.34.010
[Title 61 RCW—page 22]
61.34.020
61.34.020 Definitions. Unless the context clearly
requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Pattern of equity skimming" means engaging in a
least three acts of equity skimming within any three-year
period, with at least one of the acts occurring after June 9,
1988.
(2) "Dwelling" means a single, duplex, triplex, or
four-unit family residential building.
(3) "Person" includes any natural person, corporation,
joint stock association, or unincorporated association.
(4) An "act of equity skimming" occurs when:
(a)(i) A person purchases a dwelling with the representation that the purchaser will pay for the dwelling by assuming
the obligation to make payments on existing mortgages,
deeds of trust, or real estate contracts secured by and pertaining to the dwelling, or by representing that such obligation
will be assumed; and
(ii) The person fails to make payments on such mortgages, deeds of trust, or real estate contracts as the payments
become due, within two years subsequent to the purchase;
and
(iii) The person diverts value from the dwelling by either
(A) applying or authorizing the application of rents from the
dwelling for the person's own benefit or use, or (B) obtaining
anything of value from the sale or lease with option to purchase of the dwelling for the person's own benefit or use, or
(C) removing or obtaining appliances, fixtures, furnishings,
or parts of such dwellings or appurtenances for the person's
own benefit or use without replacing the removed items with
items of equal or greater value; or
(b)(i) The person purchases a dwelling in a transaction in
which all or part of the purchase price is financed by the seller
and is (A) secured by a lien which is inferior in priority or
subordinated to a lien placed on the dwelling by the purchaser, or (B) secured by a lien on other real or personal property, or (C) without any security; and
(ii) The person obtains a superior priority loan which
either (A) is secured by a lien on the dwelling which is superior in priority to the lien of the seller, but not including a
bona fide assumption by the purchaser of a loan existing prior
to the time of purchase, or (B) creating any lien or encumbrance on the dwelling when the seller does not hold a lien on
the dwelling; and
(iii) The person fails to make payments or defaults on the
superior priority loan within two years subsequent to the purchase; and
(iv) The person diverts value from the dwelling by
applying or authorizing any part of the proceeds from such
superior priority loan for the person's own benefit or use.
[1988 c 33 § 4.]
61.34.030
61.34.030 Criminal penalty. Any person who wilfully
engages in a pattern of equity skimming is guilty of a class B
felony under RCW 9A.20.021. Equity skimming shall be
classified as a level II offense under chapter 9.94A RCW, and
each act of equity skimming found beyond a reasonable
doubt or admitted by the defendant upon a plea of guilty to be
included in the pattern of equity skimming, shall be a separate current offense for the purpose of determining the sen(2004 Ed.)
Equity Skimming
61.34.900
tence range for each current offense pursuant to RCW
9.94A.589(1)(a). [1988 c 33 § 2.]
61.34.040 Application of consumer protection act. In
addition to the criminal penalties provided in RCW
61.34.030, the legislature finds and declares that equity skimming substantially affects the public interest. The commission by any person of an act of equity skimming or a pattern
of equity skimming is an unfair or deceptive act or practice
and unfair method of competition in the conduct of trade or
commerce in violation of RCW 19.86.020. [1988 c 33 § 3.]
61.34.040
61.34.900 Severability—1988 c 33. If any provision of
this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
[1988 c 33 § 6.]
61.34.900
(2004 Ed.)
[Title 61 RCW—page 23]
Title 62A
Title 62A
UNIFORM COMMERCIAL CODE
Articles
1
General provisions.
2
Sales.
2A
Leases.
3
Negotiable instruments.
4
Bank deposits and collections.
4A
Funds transfers.
5
Letters of credit.
7
Warehouse receipts, bills of lading and other documents of title.
8
Investment securities.
9A
Secured transactions; sales of accounts, contract
rights and chattel paper.
10
Effective date and repealer.
11
Effective date and transition provisions.
Reviser's note: The Uniform Commercial Code was enacted by 1965
ex.s. c 157 and became effective at midnight on June 30, 1967. The 1972
amendments to the Uniform Commercial Code recommended by the
National Conference of Commissioners on Uniform State Laws were
enacted by 1981 c 41 and become effective at midnight on June 30, 1982.
The style of the numbers assigned in the Commercial Code differs
from the standard RCW numbering system. The purpose of this variance is
to enable ready comparison with the laws and annotations of other states
which have adopted the Uniform Commercial Code and to conform to the
recommendations of the National Conference of Commissioners on Uniform
State Laws.
As enacted and amended by the Washington Legislature, the Uniform
Commercial Code is divided into eleven Articles, which are subdivided into
a number of Parts. The first section in Article 1, Part 1 of the Commercial
Code is numbered 1-101, the second section in Article 1, Part 1 is numbered
1-102, the first section in Article 1, Part 2 is numbered 1-201, the first section
in Article 2, Part 1 is numbered 2-101, etc.
We have assigned Title 62A RCW for the Uniform Commercial Code
but have retained its uniform numbering; thus in this title, section 1-101 of
the Commercial Code becomes RCW 62A.1-101; section 1-102 becomes
RCW 62A.1-102; section 1-201 becomes RCW 62A.1-201; section 2-101
becomes RCW 62A.2-101, and so on.
Cashing checks, drafts, and state warrants for state officers and employees—Discretionary—Conditions—Procedure upon dishonor: RCW
43.08.180.
Immunity from implied warranties and civil liability relating to blood,
plasma, and blood derivative—Scope—Effective date: RCW
70.54.120.
Materials specifically authorized to be printed and distributed by secretary
of state: RCW 43.07.140.
Motor vehicle
certificate of ownership, transfer, perfection of security interest, etc.:
Chapter 46.12 RCW.
express warranties: Chapter 19.118 RCW.
Uniform legislation commission: Chapter 43.56 RCW.
Article 1
Article 1
GENERAL PROVISIONS
Sections
PART 1
SHORT TITLE, CONSTRUCTION, APPLICATION
AND SUBJECT MATTER OF THE TITLE
62A.1-101
62A.1-102
(2004 Ed.)
Short title.
Purposes; rules of construction; variation by agreement.
62A.1-103
62A.1-104
62A.1-105
62A.1-106
62A.1-107
62A.1-108
62A.1-109
62A.1-110
Supplementary general principles of law applicable.
Construction against implicit repeal.
Territorial application of the title; parties' power to choose
applicable law.
Remedies to be liberally administered.
Waiver or renunciation of claim or right after breach.
Severability.
Section captions.
Art dealers and artists—Contracts—Duties, etc.
PART 2
GENERAL DEFINITIONS AND PRINCIPLES
OF INTERPRETATION
62A.1-201
62A.1-202
62A.1-203
62A.1-204
62A.1-205
62A.1-206
62A.1-207
62A.1-208
General definitions.
Prima facie evidence by third party documents.
Obligation of good faith.
Time; reasonable time; "seasonably".
Course of dealing and usage of trade.
Statute of frauds for kinds of personal property not otherwise
covered.
Performance or acceptance under reservation of rights.
Option to accelerate at will.
62A.1-101 Short title. This Title shall be known and
may be cited as Uniform Commercial Code. [1965 ex.s. c
157 § 1-101.]
62A.1-101
62A.1-102 Purposes; rules of construction; variation
by agreement. (1) This Title shall be liberally construed and
applied to promote its underlying purposes and policies.
(2) Underlying purposes and policies of this Title are
(a) to simplify, clarify and modernize the law governing
commercial transactions;
(b) to permit the continued expansion of commercial
practices through custom, usage and agreement of the parties;
(c) to make uniform the law among the various jurisdictions.
(3) The effect of provisions of this Title may be varied by
agreement, except as otherwise provided in this Title and
except that the obligations of good faith, diligence, reasonableness and care prescribed by this Title may not be disclaimed by agreement but the parties may by agreement
determine the standards by which the performance of such
obligations is to be measured if such standards are not manifestly unreasonable.
(4) The presence in certain provisions of this Title of the
words "unless otherwise agreed" or words of similar import
does not imply that the effect of other provisions may not be
varied by agreement under subsection (3).
(5) In this Title unless the context otherwise requires
(a) words in the singular number include the plural, and
in the plural include the singular;
(b) words of the masculine gender include the feminine
and the neuter, and when the sense so indicates words of the
neuter gender may refer to any gender. [1965 ex.s. c 157 § 1102. Cf. former RCW sections: (i) RCW 22.04.580; 1913 c
99 § 57; RRS § 3643. (ii) RCW 23.80.190; 1939 c 100 § 19;
RRS § 3803-119. (iii) RCW 63.04.745; 1925 ex.s. c 142 § 74;
RRS § 5836-74; formerly RCW 63.04.770. (iv) RCW
62A.1-102
[Title 62A RCW—page 1]
62A.1-103
Title 62A RCW: Uniform Commercial Code
81.32.521; 1961 c 14 § 81.32.521; prior: 1915 c 159 § 52;
RRS § 3698; formerly RCW 81.32.610.]
Effective date—1995 c 48: See RCW 62A.11-113.
Code to be liberally construed: RCW 1.12.010.
Effective date—1981 c 41: See RCW 62A.11-101.
Effective date—1993 c 230: See RCW 62A.11-110.
Number and gender—Interpretation: RCW 1.12.050.
62A.1-106
62A.1-103
62A.1-103 Supplementary general principles of law
applicable. Unless displaced by the particular provisions of
this Title, the principles of law and equity, including the law
merchant and the law relative to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress,
coercion, mistake, bankruptcy, or other validating or invalidating cause shall supplement its provisions. [1965 ex.s. c
157 § 1-103. Cf. former RCW sections: (i) RCW 22.04.570;
1913 c 99 § 56; RRS § 3642. (ii) RCW 23.80.180; 1939 c 100
§ 18; RRS § 3803-118; formerly RCW 23.20.190. (iii) RCW
62.01.196; 1955 c 35 § 196; RRS § 3586. (iv) RCW
63.04.030; 1925 ex.s. c 142 § 2; RRS § 5836-2. (v) RCW
81.32.511; 1961 c 14 § 81.32.511; prior: 1915 c 159 § 51;
RRS § 3697; formerly RCW 81.32.600.]
Application of common law: RCW 4.04.010.
62A.1-104
62A.1-104 Construction against implicit repeal. This
Title being a general act intended as a unified coverage of its
subject matter, no part of it shall be deemed to be impliedly
repealed by subsequent legislation if such construction can
reasonably be avoided. [1965 ex.s. c 157 § 1-104.]
62A.1-106 Remedies to be liberally administered. (1)
The remedies provided by this Title shall be liberally administered to the end that the aggrieved party may be put in as
good a position as if the other party had fully performed but
neither consequential or special nor penal damages may be
had except as specifically provided in this Title or by other
rule of law.
(2) Any right or obligation declared by this Title is
enforceable by action unless the provision declaring it specifies a different and limited effect. [1965 ex.s. c 157 § 1-106.
Cf. former: RCW 63.04.730; 1925 ex.s. c 142 § 72; RRS §
5836-72.]
62A.1-107 Waiver or renunciation of claim or right
after breach. Any claim or right arising out of an alleged
breach can be discharged in whole or in part without consideration by a written waiver or renunciation signed and delivered by the aggrieved party. [1965 ex.s. c 157 § 1-107. Cf.
former RCW sections: (i) RCW 62.01.119(3); 1955 c 35 §
62.01.119; prior: 1899 c 149 § 119; RRS § 3509. (ii) RCW
62.01.120(2); 1955 c 35 § 62.01.120; prior: 1899 c 149 §
120; RRS § 3510. (iii) RCW 62.01.122; 1955 c 35 §
62.01.122; prior: 1899 c 149 § 122; RRS § 3512.]
62A.1-107
62A.1-105
62A.1-105 Territorial application of the title; parties'
power to choose applicable law. (1) Except as provided
hereafter in this section, when a transaction bears a reasonable relation to this state and also to another state or nation
the parties may agree that the law either of this state or of
such other state or nation shall govern their rights and duties.
Failing such agreement this Title applies to transactions bearing an appropriate relation to this state.
(2) Where one of the following provisions of this Title
specifies the applicable law, that provision governs and a
contrary agreement is effective only to the extent permitted
by the law (including the conflict of laws rules) so specified:
Rights of creditors against sold goods. RCW 62A.2-402.
Applicability of the Article on Leases. RCW 62A.2A105 and 62A.2A-106.
Applicability of the Article on Bank Deposits and Collections. RCW 62A.4-102.
Governing law in the Article on Funds Transfers. RCW
62A.4A-507.
Letters of Credit. RCW 62A.5-116.
Applicability of the Article on Investment Securities.
RCW 62A.8-110.
Law governing perfection, the effect of perfection or
nonperfection, and the priority of security interests and agricultural liens. RCW 62A.9A-301 through 62A.9A-307.
[2001 c 32 § 8; 2000 c 250 § 9A-801; 1997 c 56 § 19; 1995 c
48 § 54. Prior: 1993 c 395 § 6-102; 1993 c 230 § 2A-601;
1981 c 41 § 1; 1965 ex.s. c 157 § 1-105.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
Effective date—2000 c 250: See RCW 62A.9A-701.
Applicability—Savings—Transition provisions—1997 c 56: See
RCW 62A.5-1013 and 62A.5-1015.
Savings—1995 c 48: See RCW 62A.8-601.
[Title 62A RCW—page 2]
62A.1-108
62A.1-108 Severability. If any provision or clause of
this Title or application thereof to any person or circumstances is held invalid, such invalidity shall not affect other
provisions or applications of the Title which can be given
effect without the invalid provision or application, and to this
end the provisions of this Title are declared to be severable.
[1965 ex.s. c 157 § 1-108. Cf. former RCW 62.98.030; 1955
c 35 § 62.98.030.]
62A.1-109 Section captions. Section captions are parts
of this Title. [1965 ex.s. c 157 § 1-109. Cf. former RCW
62.98.020; 1955 c 35 § 62.98.020.]
62A.1-109
Reviser's note: Sections in this title that were amended or added after
the original enactment of this title by chapter 157, Laws of 1965 ex. sess.
may have section captions supplied by the code reviser as authorized under
RCW 1.08.015(2)(l).
62A.1-110 Art dealers and artists—Contracts—
Duties, etc. Chapter 18.110 RCW shall control over any
conflicting provision of this title. [1981 c 33 § 7.]
62A.1-110
62A.1-201 General definitions. Subject to additional
definitions contained in the subsequent Articles of this Title
which are applicable to specific Articles or Parts thereof, and
unless the context otherwise requires, in this Title:
(1) "Action" in the sense of a judicial proceeding
includes recoupment, counterclaim, set-off, suit in equity and
any other proceedings in which rights are determined.
(2) "Aggrieved party" means a party entitled to resort to
a remedy.
(3) "Agreement" means the bargain of the parties in fact
as found in their language or by implication from other circumstances including course of dealing or usage of trade or
(2004 Ed.)
General Provisions
course of performance as provided in this Title (RCW 62A.1205, RCW 62A.2-208, and RCW 62A.2A-207). Whether an
agreement has legal consequences is determined by the provisions of this Title, if applicable; otherwise by the law of
contracts (RCW 62A.1-103). (Compare "Contract".)
(4) "Bank" means any person engaged in the business of
banking.
(5) "Bearer" means the person in possession of an instrument, document of title, or certificated security payable to
bearer or indorsed in blank.
(6) "Bill of lading" means a document evidencing the
receipt of goods for shipment issued by a person engaged in
the business of transporting or forwarding goods, and
includes an airbill. "Airbill" means a document serving for air
transportation as a bill of lading does for marine or rail transportation, and includes an air consignment note or air waybill.
(7) "Branch" includes a separately incorporated foreign
branch of a bank.
(8) "Burden of establishing" a fact means the burden of
persuading the triers of fact that the existence of the fact is
more probable than its non-existence.
(9) "Buyer in ordinary course of business" means a person that buys goods in good faith, without knowledge that the
sale violates the rights of another person in the goods, and in
the ordinary course from a person, other than a pawnbroker,
in the business of selling goods of that kind. A person buys
goods in the ordinary course if the sale to the person comports with the usual or customary practices in the kind of
business in which the seller is engaged or with the seller's
own usual or customary practices. A person that sells oil, gas,
or other minerals at the wellhead or minehead is a person in
the business of selling goods of that kind. A buyer in ordinary
course of business may buy for cash, by exchange of other
property, or on secured or unsecured credit, and may acquire
goods or documents of title under a pre-existing contract for
sale. Only a buyer that takes possession of the goods or has a
right to recover the goods from the seller under Article 62A.2
RCW may be a buyer in ordinary course of business. A person that acquires goods in a transfer in bulk or as security for
or in total or partial satisfaction of a money debt is not a buyer
in ordinary course of business.
(10) "Conspicuous": A term or clause is conspicuous
when it is so written that a reasonable person against whom it
is to operate ought to have noticed it. A printed heading in
capitals (as: NON-NEGOTIABLE BILL OF LADING) is
conspicuous. Language in the body of a form is "conspicuous" if it is in larger or other contrasting type or color. But in
a telegram any stated term is "conspicuous". Whether a term
or clause is "conspicuous" or not is for decision by the court.
(11) "Contract" means the total legal obligation which
results from the parties' agreement as affected by this Title
and any other applicable rules of law. (Compare "Agreement".)
(12) "Creditor" includes a general creditor, a secured
creditor, a lien creditor and any representative of creditors,
including an assignee for the benefit of creditors, a trustee in
bankruptcy, a receiver in equity and an executor or administrator of an insolvent debtor's or assignor's estate.
(13) "Defendant" includes a person in the position of
defendant in a cross-action or counterclaim.
(2004 Ed.)
62A.1-110
(14) "Delivery" with respect to instruments, documents
of title, chattel paper, or certificated securities means voluntary transfer of possession.
(15) "Document of title" includes bill of lading, dock
warrant, dock receipt, warehouse receipt or order for the
delivery of goods, and also any other document which in the
regular course of business or financing is treated as adequately evidencing that the person in possession of it is entitled to receive, hold and dispose of the document and the
goods it covers. To be a document of title a document must
purport to be issued by or addressed to a bailee and purport to
cover goods in the bailee's possession which are either identified or are fungible portions of an identified mass.
(16) "Fault" means wrongful act, omission or breach.
(17) "Fungible" with respect to goods or securities
means goods or securities of which any unit is, by nature or
usage of trade, the equivalent of any other like unit. Goods
which are not fungible shall be deemed fungible for the purposes of this Title to the extent that under a particular agreement or document unlike units are treated as equivalents.
(18) "Genuine" means free of forgery or counterfeiting.
(19) "Good faith" means honesty in fact in the conduct or
transaction concerned.
(20) "Holder" with respect to a negotiable instrument,
means the person in possession if the instrument is payable to
bearer or, in the case of an instrument payable to an identified
person, if the identified person is in possession. "Holder"
with respect to a document of title means the person in possession if the goods are deliverable to bearer or to the order of
the person in possession.
(21) To "honor" is to pay or to accept and pay, or where
a credit so engages to purchase or discount a draft complying
with the terms of the credit.
(22) "Insolvency proceedings" includes any assignment
for the benefit of creditors or other proceedings intended to
liquidate or rehabilitate the estate of the person involved.
(23) A person is "insolvent" who either has ceased to pay
his or her debts in the ordinary course of business or cannot
pay his or her debts as they become due or is insolvent within
the meaning of the federal bankruptcy law.
(24) "Money" means a medium of exchange authorized
or adopted by a domestic or foreign government and includes
a monetary unit of account established by an intergovernmental organization or by agreement between two or more
nations.
(25) A person has "notice" of a fact when
(a) he or she has actual knowledge of it; or
(b) he or she has received a notice or notification of it; or
(c) from all the facts and circumstances known to him or
her at the time in question he or she has reason to know that
it exists.
A person "knows" or has "knowledge" of a fact when he or
she has actual knowledge of it. "Discover" or "learn" or a
word or phrase of similar import refers to knowledge rather
than to reason to know. The time and circumstances under
which a notice or notification may cease to be effective are
not determined by this Title.
(26) A person "notifies" or "gives" a notice or notification to another by taking such steps as may be reasonably
required to inform the other in ordinary course whether or not
[Title 62A RCW—page 3]
62A.1-110
Title 62A RCW: Uniform Commercial Code
such other actually comes to know of it. A person "receives"
a notice or notification when
(a) it comes to his or her attention; or
(b) it is duly delivered at the place of business through
which the contract was made or at any other place held out by
him or her as the place for receipt of such communications.
(27) Notice, knowledge or a notice or notification
received by an organization is effective for a particular transaction from the time when it is brought to the attention of the
individual conducting that transaction, and in any event from
the time when it would have been brought to his or her attention if the organization had exercised due diligence. An organization exercises due diligence if it maintains reasonable
routines for communicating significant information to the
person conducting the transaction and there is reasonable
compliance with the routines. Due diligence does not require
an individual acting for the organization to communicate
information unless such communication is part of his or her
regular duties or unless he or she has reason to know of the
transaction and that the transaction would be materially
affected by the information.
(28) "Organization" includes a corporation, government
or governmental subdivision or agency, business trust, estate,
trust, partnership or association, two or more persons having
a joint or common interest, or any other legal or commercial
entity.
(29) "Party", as distinct from "third party", means a person who has engaged in a transaction or made an agreement
within this Title.
(30) "Person" includes an individual or an organization
(See RCW 62A.1-102).
(31) "Presumption" or "presumed" means that the trier of
fact must find the existence of the fact presumed unless and
until evidence is introduced which would support a finding of
its nonexistence.
(32) "Purchase" includes taking by sale, discount, negotiation, mortgage, pledge, lien, security interest, issue or reissue, gift or any other voluntary transaction creating an interest in property.
(33) "Purchaser" means a person who takes by purchase.
(34) "Remedy" means any remedial right to which an
aggrieved party is entitled with or without resort to a tribunal.
(35) "Representative" includes an agent, an officer of a
corporation or association, and a trustee, executor or administrator of an estate, or any other person empowered to act for
another.
(36) "Rights" includes remedies.
(37) "Security interest" means an interest in personal
property or fixtures which secures payment or performance
of an obligation, except for lease-purchase agreements under
chapter 63.19 RCW. The term also includes any interest of a
consignor and a buyer of accounts, chattel paper, a payment
intangible, or a promissory note in a transaction that is subject to Article 9A. The special property interest of a buyer of
goods on identification of such goods to a contract for sale
under RCW 62A.2-401 is not a "security interest", but a
buyer may also acquire a "security interest" by complying
with Article 9A. Except as otherwise provided in RCW
62A.2-505, the right of a seller or lessor of goods under Article 2 or 2A to retain or acquire possession of the goods is not
a "security interest," but a seller or lessor may also acquire a
[Title 62A RCW—page 4]
"security interest" by complying with Article 9A. The retention or reservation of title by a seller of goods notwithstanding shipment or delivery to the buyer (RCW 62A.2-401) is
limited in effect to a reservation of a "security interest."
Whether a transaction creates a lease or security interest
is determined by the facts of each case. However, a transaction creates a security interest if the consideration the lessee
is to pay the lessor for the right to possession and use of the
goods is an obligation for the term of the lease not subject to
termination by the lessee, and:
(a) The original term of the lease is equal to or greater
than the remaining economic life of the goods;
(b) The lessee is bound to renew the lease for the remaining economic life of the goods or is bound to become the
owner of the goods;
(c) The lessee has an option to renew the lease for the
remaining economic life of the goods for no additional consideration or nominal additional consideration upon compliance with the lease agreement; or
(d) The lessee has an option to become the owner of the
goods for no additional consideration or nominal additional
consideration upon compliance with the lease agreement.
A transaction does not create a security interest merely
because it provides that:
(a) The present value of the consideration the lessee is
obligated to pay the lessor for the right to possession and use
of the goods is substantially equal to or is greater than the fair
market value of the goods at the time the lease is entered into;
(b) The lessee assumes risk of loss of the goods, or
agrees to pay taxes, insurance, filing, recording, or registration fees, or service or maintenance costs with respect to the
goods;
(c) The lessee has an option to renew the lease or to
become the owner of the goods;
(d) The lessee has an option to renew the lease for a fixed
rent that is equal to or greater than the reasonably predictable
fair market rent for the use of the goods for the term of the
renewal at the time the option is to be performed;
(e) The lessee has an option to become the owner of the
goods for a fixed price that is equal to or greater than the reasonably predictable fair market value of the goods at the time
the option is to be performed; or
(f) The amount of rental payments may or will be
increased or decreased by reference to the amount realized by
the lessor upon sale or disposition of the goods.
For purposes of this subsection (37):
(a) Additional consideration is not nominal if (i) when
the option to renew the lease is granted to the lessee the rent
is stated to be the fair market rent for the use of the goods for
the term of the renewal determined at the time the option is to
be performed, or (ii) when the option to become the owner of
the goods is granted to the lessee the price is stated to be the
fair market value of the goods determined at the time the
option is to be performed. Additional consideration is nominal if it is less than the lessee's reasonably predictable cost of
performing under the lease agreement if the option is not
exercised;
(b) "Reasonably predictable" and "remaining economic
life of the goods" are to be determined with reference to the
facts and circumstances at the time the transaction is entered
into; and
(2004 Ed.)
General Provisions
(c) "Present value" means the amount as of a date certain
of one or more sums payable in the future, discounted to the
date certain. The discount is determined by the interest rate
specified by the parties if the rate is not manifestly unreasonable at the time the transaction is entered into; otherwise, the
discount is determined by a commercially reasonable rate
that takes into account the facts and circumstances of each
case at the time the transaction was entered into.
(38) "Send" in connection with any writing or notice
means to deposit in the mail or deliver for transmission by
any other usual means of communication with postage or cost
of transmission provided for and properly addressed and in
the case of an instrument to an address specified thereon or
otherwise agreed, or if there be none to any address reasonable under the circumstances. The receipt of any writing or
notice within the time at which it would have arrived if properly sent has the effect of a proper sending.
(39) "Signed" includes any symbol executed or adopted
by a party with present intention to authenticate a writing.
(40) "Surety" includes guarantor.
(41) "Telegram" includes a message transmitted by
radio, teletype, cable, any mechanical method of transmission, or the like.
(42) "Term" means that portion of an agreement which
relates to a particular matter.
(43) "Unauthorized" signature means one made without
actual, implied or apparent authority and includes a forgery.
(44) "Value". Except as otherwise provided with respect
to negotiable instruments and bank collections (RCW 62A.3303, RCW 62A.4-210, and RCW 62A.4-211) a person gives
"value" for rights if he or she acquires them
(a) in return for a binding commitment to extend credit
or for the extension of immediately available credit whether
or not drawn upon and whether or not a charge-back is provided for in the event of difficulties in collection; or
(b) as security for or in total or partial satisfaction of a
preexisting claim; or
(c) by accepting delivery pursuant to a pre-existing contract for purchase; or
(d) generally, in return for any consideration sufficient to
support a simple contract.
(45) "Warehouse receipt" means a receipt issued by a
person engaged in the business of storing goods for hire.
(46) "Written" or "writing" includes printing, typewriting or any other intentional reduction to tangible form. [2001
c 32 § 9; 2000 c 250 § 9A-802; 1996 c 77 § 1. Prior: 1993 c
230 § 2A-602; 1993 c 229 § 1; 1992 c 134 § 14; 1990 c 228 §
1; 1986 c 35 § 53; 1981 c 41 § 2; 1965 ex.s. c 157 § 1-201.]
Reviser's note: This table indicates the latest comparable former
Washington sources of the material contained in the various subsections of
RCW 62A.1-201. Complete histories of the former sections are carried in the
Revised Code of Washington Disposition Tables.
HEREIN
SUBD.
(1)
(2)
(3)
(2004 Ed.)
62A.1-110
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
(26)
(27)
(28)
(29)
(30)
(31)
(32)
COMPARE
FORMER
RCW: (i) 22.04.585(1)
(ii) 62.01.191
(iii) 63.04.755(1)
(iv) 81.32.531(1)
None
None
(33)
RCW: (i) 30.52.010
(ii) 62.01.191
RCW 62.01.191
RCW 81.32.0111
None
None
RCW 61.20.010
None
RCW: (i) 63.04.040
(ii) 63.04.720
None
RCW 63.04.755(1)
RCW: (i) 22.04.585(1)
(ii) 62.01.191
(iii) 63.04.755(1)
(iv) 81.32.531(1)
RCW 63.04.755(1)
RCW 63.04.755(1)
RCW: (i) 22.04.585(1)
(ii) 63.04.060
(iii) 63.04.070
(iv) 63.04.755(1)
None
RCW: (i) 22.04.585(2)
(ii) 23.80.220(2)
(iii) 63.04.755(2)
(iv) 81.32.531(2)
RCW: (i) 22.04.585(1)
(ii) 62.01.191
(iii) 81.32.531(1)
None
None
RCW 63.04.755(3)
RCW 62.01.006(5)
RCW 62.01.056
None
None
RCW: (i) 22.04.585(1)
(ii) 23.80.220(1)
(iii) 61.20.010
(iv) 62.01.191
(v) 63.04.755(1)
(vi) 81.32.531(1)
None
RCW: (i) 22.04.585(1)
(ii) 23.80.220(1)
(iii) 61.20.010
(iv) 62.01.191
(v) 63.04.755(1)
(vi) 81.32.531(1)
None
RCW: (i) 22.04.585(1)
(ii) 23.80.220(1)
(iii) 61.20.010
(iv) 63.04.755(1)
(v) 81.32.531(1)
RCW: (i) 22.04.585(1)
(ii) 23.80.220(1)
(iii) 61.20.010
(iv) 63.04.755(1)
(v) 81.32.531(1)
[Title 62A RCW—page 5]
62A.1-202
Title 62A RCW: Uniform Commercial Code
(34)
(35)
(36)
(37)
(38)
(39)
(40)
(41)
(42)
(43)
(44)
RCW:
(45)
RCW:
(46)
RCW
RCW
None
None
None
61.20.010
None
None
None
None
None
None
(i) 22.04.585(1)
(ii) 23.80.220(1)
(iii) 61.20.010
(iv) 62.01.025
(v) 62.01.026
(vi) 62.01.027
(vii) 62.01.191
(viii) 63.04.755(1)
(ix) 81.32.531(1)
(i) 22.04.020
(ii) 63.04.755(1)
62.01.191
1
The repeal of RCW sections 81.32.010 through 81.32.561 ". . . shall not
affect the validity of sections 81.29.010 through 81.29.050, chapter 14, Laws
of 1961 (RCW 81.29.010 through 81.29.050)." Section 10-102(a)(xvii),
chapter 157, Laws of 1965 ex. sess.
Effective date—2001 c 32: See note following RCW 62A.9A-102.
Effective date—2000 c 250: See RCW 62A.9A-701.
Effective date—1993 c 230: See RCW 62A.11-110.
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
Short title—Severability—1992 c 134: See RCW 63.19.900 and
63.19.901.
Effective date—1981 c 41: See RCW 62A.11-101.
62A.1-202
62A.1-202 Prima facie evidence by third party documents. A document in due form purporting to be a bill of lading, policy or certificate of insurance, official weigher's or
inspector's certificate, consular invoice, or any other document authorized or required by the contract to be issued by a
third party shall be prima facie evidence of its own authenticity and genuineness and of the facts stated in the document by
the third party. [1965 ex.s. c 157 § 1-202.]
Official documents as evidence: RCW 5.40.020, 5.40.030, 5.40.040.
Uniform Business Records as Evidence Act: Chapter 5.45 RCW.
62A.1-203
62A.1-203 Obligation of good faith. Every contract or
duty within this Title imposes an obligation of good faith in
its performance or enforcement. [1965 ex.s. c 157 § 1-203.]
62A.1-204
62A.1-204 Time; reasonable time; "seasonably". (1)
Whenever this Title requires any action to be taken within a
reasonable time, any time which is not manifestly unreasonable may be fixed by agreement.
(2) What is a reasonable time for taking any action
depends on the nature, purpose and circumstances of such
action.
[Title 62A RCW—page 6]
(3) An action is taken "seasonably" when it is taken at or
within the time agreed or if no time is agreed at or within a
reasonable time. [1965 ex.s. c 157 § 1-204.]
62A.1-205
62A.1-205 Course of dealing and usage of trade. (1)
A course of dealing is a sequence of previous conduct
between the parties to a particular transaction which is fairly
to be regarded as establishing a common basis of understanding for interpreting their expressions and other conduct.
(2) A usage of trade is any practice or method of dealing
having such regularity of observance in a place, vocation or
trade as to justify an expectation that it will be observed with
respect to the transaction in question. The existence and
scope of such a usage are to be proved as facts. If it is established that such a usage is embodied in a written trade code or
similar writing the interpretation of the writing is for the
court.
(3) A course of dealing between parties and any usage of
trade in the vocation or trade in which they are engaged or of
which they are or should be aware give particular meaning to
and supplement or qualify terms of an agreement.
(4) The express terms of an agreement and an applicable
course of dealing or usage of trade shall be construed wherever reasonable as consistent with each other; but when such
construction is unreasonable express terms control both
course of dealing and usage of trade and course of dealing
controls usage of trade.
(5) An applicable usage of trade in the place where any
part of performance is to occur shall be used in interpreting
the agreement as to that part of the performance.
(6) Evidence of a relevant usage of trade offered by one
party is not admissible unless and until he has given the other
party such notice as the court finds sufficient to prevent
unfair surprise to the latter. [1965 ex.s. c 157 § 1-205. Cf.
former RCW sections: (i) RCW 63.04.100(1); 1925 ex.s. c
142 § 9; RRS § 5836-9. (ii) RCW 63.04.160(5); 1925 ex.s. c
142 § 15; RRS § 5836-15. (iii) RCW 63.04.190(2); 1925 ex.s.
c 142 § 18; RRS § 5836-18. (iv) RCW 63.04.720; 1925 ex.s.
c 142 § 71; RRS § 5836-71.]
62A.1-206
62A.1-206 Statute of frauds for kinds of personal
property not otherwise covered. (1) Except in the cases
described in subsection (2) of this section a contract for the
sale of personal property is not enforceable by way of action
or defense beyond five thousand dollars in amount or value of
remedy unless there is some writing which indicates that a
contract for sale has been made between the parties at a
defined or stated price, reasonably identifies the subject matter, and is signed by the party against whom enforcement is
sought or by his authorized agent.
(2) Subsection (1) of this section does not apply to contracts for the sale of goods (RCW 62A.2-201) nor of securities (RCW 62A.8-113) nor to security agreements (*RCW
62A.9-203). [1995 c 48 § 55; 1965 ex.s. c 157 § 1-206. Cf.
former RCW 63.04.050; 1925 ex.s. c 142 § 4; RRS § 5836-4;
prior: Code 1881 § 2326.]
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001. For later enactment, see Article
62A.9A RCW.
(2004 Ed.)
Sales
Savings—1995 c 48: See RCW 62A.8-601.
Effective date—1995 c 48: See RCW 62A.11-113.
Statute of frauds: Chapter 19.36 RCW.
62A.1-207 Performance or acceptance under reservation of rights. (1) A party who, with explicit reservation
of rights performs or promises performance or assents to performance in a manner demanded or offered by the other party
does not thereby prejudice the rights reserved. Such words as
"without prejudice", "under protest" or the like are sufficient.
(2) Subsection (1) of this section shall not apply to an
accord and satisfaction. [1993 c 229 § 2; 1965 ex.s. c 157 §
1-207.]
62A.1-207
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.1-208 Option to accelerate at will. A term providing that one party or his successor in interest may accelerate payment or performance or require collateral or additional
collateral "at will" or "when he deems himself insecure" or in
words of similar import shall be construed to mean that he
shall have power to do so only if he in good faith believes that
the prospect of payment or performance is impaired. [1965
ex.s. c 157 § 1-208. Cf. former RCW 61.08.080; Code 1881
§ 1998; 1879 p 106 § 13; RRS § 1111.]
62A.1-208
Article 2
Article 2
SALES
Sections
PART 1
SHORT TITLE, GENERAL CONSTRUCTION
AND SUBJECT MATTER
62A.2-101
62A.2-102
62A.2-103
62A.2-104
62A.2-105
62A.2-106
62A.2-107
Short title.
Scope; certain security and other transactions excluded from
this Article.
Definitions and index of definitions.
Definitions: "Merchant"; "between merchants"; "financing
agency".
Definitions: Transferability; "goods"; "future" goods; "lot";
"commercial unit".
Definitions: "Contract"; "agreement"; "contract for sale";
"sale"; "present sale"; "conforming" to contract; "termination"; "cancellation".
Goods to be severed from realty: Recording.
PART 2
FORM, FORMATION AND READJUSTMENT OF CONTRACT
62A.2-201
62A.2-202
62A.2-203
62A.2-204
62A.2-205
62A.2-206
62A.2-207
62A.2-208
62A.2-209
62A.2-210
Formal requirements; statute of frauds.
Final written expression: Parol or extrinsic evidence.
Seals inoperative.
Formation in general.
Firm offers.
Offer and acceptance in formation of contract.
Additional terms in acceptance or confirmation.
Course of performance or practical construction.
Modification, rescission and waiver.
Delegation of performance; assignment of rights.
PART 3
GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT
62A.2-301
62A.2-302
62A.2-303
62A.2-304
62A.2-305
62A.2-306
62A.2-307
62A.2-308
62A.2-309
(2004 Ed.)
General obligations of parties.
Unconscionable contract or clause.
Allocation or division of risks.
Price payable in money, goods, realty, or otherwise.
Open price term.
Output, requirements and exclusive dealings.
Delivery in single lot or several lots.
Absence of specified place for delivery.
Absence of specific time provisions; notice of termination.
Article 2
62A.2-310
62A.2-311
62A.2-312
62A.2-313
62A.2-314
62A.2-315
62A.2-316
62A.2-317
62A.2-318
62A.2-319
62A.2-320
62A.2-321
62A.2-322
62A.2-323
62A.2-324
62A.2-325
62A.2-326
62A.2-327
62A.2-328
Open time for payment or running of credit; authority to ship
under reservation.
Options and cooperation respecting performance.
Warranty of title and against infringement; buyer's obligation
against infringement.
Express warranties by affirmation, promise, description, sample.
Implied warranty: Merchantability; usage of trade.
Implied warranty: Fitness for particular purpose.
Exclusion or modification of warranties.
Cumulation and conflict of warranties express or implied.
Third party beneficiaries of warranties express or implied.
F.O.B. and F.A.S. terms.
C.I.F. and C.&F. terms.
C.I.F. or C.&F.: "Net landed weights"; "payment on arrival";
warranty of condition on arrival.
Delivery "ex-ship".
Form of bill of lading required in overseas shipment; "overseas".
"No arrival, no sale" term.
"Letter of credit" term; "confirmed credit".
Sale on approval and sale or return; rights of creditors.
Special incidents of sale on approval and sale or return.
Sale by auction.
PART 4
TITLE, CREDITORS AND GOOD FAITH PURCHASERS
62A.2-401
62A.2-402
62A.2-403
Passing of title; reservation for security; limited application of
this section.
Rights of seller's creditors against sold goods.
Power to transfer; good faith purchase of goods; "entrusting".
PART 5
PERFORMANCE
62A.2-501
62A.2-502
62A.2-503
62A.2-504
62A.2-505
62A.2-506
62A.2-507
62A.2-508
62A.2-509
62A.2-510
62A.2-511
62A.2-512
62A.2-513
62A.2-514
62A.2-515
Insurable interest in goods; manner of identification of goods.
Buyer's right to goods on seller's insolvency.
Manner of seller's tender of delivery.
Shipment by seller.
Seller's shipment under reservation.
Rights of financing agency.
Effect of seller's tender; delivery on condition.
Cure by seller of improper tender or delivery; replacement.
Risk of loss in the absence of breach.
Effect of breach on risk of loss.
Tender of payment by buyer; payment by check.
Payment by buyer before inspection.
Buyer's right to inspection of goods.
When documents deliverable on acceptance; when on payment.
Preserving evidence of goods in dispute.
PART 6
BREACH, REPUDIATION AND EXCUSE
62A.2-601
62A.2-602
62A.2-603
62A.2-604
62A.2-605
62A.2-606
62A.2-607
62A.2-608
62A.2-609
62A.2-610
62A.2-611
62A.2-612
62A.2-613
62A.2-614
62A.2-615
62A.2-616
Buyer's rights on improper delivery.
Manner and effect of rightful rejection.
Merchant buyer's duties as to rightfully rejected goods.
Buyer's options as to salvage of rightfully rejected goods.
Waiver of buyer's objections by failure to particularize.
What constitutes acceptance of goods.
Effect of acceptance; notice of breach; burden of establishing
breach after acceptance; notice of claim or litigation to person answerable over.
Revocation of acceptance in whole or in part.
Right to adequate assurance of performance.
Anticipatory repudiation.
Retraction of anticipatory repudiation.
"Installment contract"; breach.
Casualty to identified goods.
Substituted performance.
Excuse by failure of presupposed conditions.
Procedure on notice claiming excuse.
PART 7
REMEDIES
62A.2-701
62A.2-702
62A.2-703
Remedies for breach of collateral contracts not impaired.
Seller's remedies on discovery of buyer's insolvency.
Seller's remedies in general.
[Title 62A RCW—page 7]
62A.2-101
62A.2-704
62A.2-705
62A.2-706
62A.2-707
62A.2-708
62A.2-709
62A.2-710
62A.2-711
62A.2-712
62A.2-713
62A.2-714
62A.2-715
62A.2-716
62A.2-717
62A.2-718
62A.2-719
62A.2-720
62A.2-721
62A.2-722
62A.2-723
62A.2-724
62A.2-725
Title 62A RCW: Uniform Commercial Code
Seller's right to identify goods to the contract notwithstanding
breach or to salvage unfinished goods.
Seller's stoppage of delivery in transit or otherwise.
Seller's resale including contract for resale.
"Person in the position of a seller".
Seller's damages for non-acceptance or repudiation.
Action for the price.
Seller's incidental damages.
Buyer's remedies in general; buyer's security interest in
rejected goods.
"Cover"; buyer's procurement of substitute goods.
Buyer's damages for non-delivery or repudiation.
Buyer's damages for breach in regard to accepted goods.
Buyer's incidental and consequential damages.
Buyer's right to specific performance or replevin.
Deduction of damages from the price.
Liquidation or limitation of damages; deposits.
Contractual modification or limitation of remedy.
Effect of "cancellation" or "rescission" on claims for antecedent breach.
Remedies for fraud.
Who can sue third parties for injury to goods.
Proof of market price: Time and place.
Admissibility of market quotations.
Statute of limitations in contracts for sale.
62A.2-101
62A.2-101 Short title. This Article shall be known and
may be cited as Uniform Commercial Code—Sales. [1965
ex.s. c 157 § 2-101.]
62A.2-102
62A.2-102 Scope; certain security and other transactions excluded from this Article. Unless the context otherwise requires, this Article applies to transactions in goods; it
does not apply to any transaction which although in the form
of an unconditional contract to sell or present sale is intended
to operate only as a security transaction nor does this Article
impair or repeal any statute regulating sales to consumers,
farmers or other specified classes of buyers. [1965 ex.s. c
157 § 2-102. Cf. former RCW 63.04.750; 1925 ex.s. c 142 §
75; RRS § 5836-75.]
62A.2-103
62A.2-103 Definitions and index of definitions. (1) In
this Article unless the context otherwise requires
(a) "Buyer" means a person who buys or contracts to buy
goods.
(b) "Good faith" in the case of a merchant means honesty
in fact and the observance of reasonable commercial standards of fair dealing in the trade.
(c) "Receipt" of goods means taking physical possession
of them.
(d) "Seller" means a person who sells or contracts to sell
goods.
(2) Other definitions applying to this Article or to specified Parts thereof, and the sections in which they appear are:
"Acceptance."
RCW 62A.2-606.
"Banker's credit."
RCW 62A.2-325.
"Between merchants."
RCW 62A.2-104.
"Cancellation."
RCW 62A.2-106(4).
"Commercial unit."
RCW 62A.2-105.
"Confirmed credit."
RCW 62A.2-325.
"Conforming to contract."
RCW 62A.2-106.
"Contract for sale."
RCW 62A.2-106.
"Cover."
RCW 62A.2-712.
"Entrusting."
RCW 62A.2-403.
"Financing agency."
RCW 62A.2-104.
"Future goods."
RCW 62A.2-105.
"Goods."
RCW 62A.2-105.
[Title 62A RCW—page 8]
"Identification."
RCW 62A.2-501.
"Installment contract."
RCW 62A.2-612.
"Letter of credit."
RCW 62A.2-325.
"Lot."
RCW 62A.2-105.
"Merchant."
RCW 62A.2-104.
"Overseas."
RCW 62A.2-323.
"Person in position of seller." RCW 62A.2-707.
"Present sale."
RCW 62A.2-106.
"Sale."
RCW 62A.2-106.
"Sale on approval."
RCW 62A.2-326.
"Sale or return."
RCW 62A.2-326.
"Termination."
RCW 62A.2-106.
(3) The following definitions in other Articles apply to
this Article:
"Check."
RCW 62A.3-104.
"Consignee."
RCW 62A.7-102.
"Consignor."
RCW 62A.7-102.
"Consumer goods."
RCW 62A.9A-102.
"Dishonor."
RCW 62A.3-502.
"Draft."
RCW 62A.3-104.
(4) In addition Article 1 contains general definitions and
principles of construction and interpretation applicable
throughout this Article. [2000 c 250 § 9A-803; 1965 ex.s. c
157 § 2-103. Cf. former RCW 63.04.755(1); 1925 ex.s. c 142
§ 76; RRS § 5836-76; formerly RCW 63.04.010.]
Effective date—2000 c 250: See RCW 62A.9A-701.
62A.2-104
62A.2-104 Definitions: "Merchant"; "between merchants"; "financing agency". (1) "Merchant" means a person who deals in goods of the kind or otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved in the transaction or to
whom such knowledge or skill may be attributed by his
employment of an agent or broker or other intermediary who
by his occupation holds himself out as having such knowledge or skill.
(2) "Financing agency" means a bank, finance company
or other person who in the ordinary course of business makes
advances against goods or documents of title or who by
arrangement with either the seller or the buyer intervenes in
ordinary course to make or collect payment due or claimed
under the contract for sale, as by purchasing or paying the
seller's draft or making advances against it or by merely taking it for collection whether or not documents of title accompany the draft. "Financing agency" includes also a bank or
other person who similarly intervenes between persons who
are in the position of seller and buyer in respect to the goods
(RCW 62A.2-707).
(3) "Between merchants" means in any transaction with
respect to which both parties are chargeable with the knowledge or skill of merchants. [1965 ex.s. c 157 § 2-104. Cf.
former RCW sections: (i) RCW 63.04.160(2), (5); 1925 ex.s.
c 142 § 15; RRS § 5836-15. (ii) RCW 63.04.170(c); 1925
ex.s. c 142 § 16; RRS § 5836-16. (iii) RCW 63.04.460(2);
1925 ex.s. c 142 § 45; RRS § 5836-45. (iv) RCW 63.04.720;
1925 ex.s. c 142 § 71; RRS § 5836-71. (v) RCW 81.32.351;
1961 c 14 § 81.32.351; prior: 1915 c 159 § 35; RRS § 3681;
formerly RCW 81.32.440. (vi) RCW 81.32.371; 1961 c 14 §
81.32.371; prior: 1915 c 159 § 37; RRS § 3683; formerly
RCW 81.32.460.]
(2004 Ed.)
Sales
62A.2-105
62A.2-105 Definitions: Transferability; "goods";
"future" goods; "lot"; "commercial unit". (1) "Goods"
means all things (including specially manufactured goods)
which are movable at the time of identification to the contract
for sale other than the money in which the price is to be paid,
investment securities (Article 8) and things in action.
"Goods" also includes the unborn young of animals and
growing crops and other identified things attached to realty as
described in the section on goods to be severed from realty
(RCW 62A.2-107).
(2) Goods must be both existing and identified before
any interest in them can pass. Goods which are not both existing and identified are "future" goods. A purported present
sale of future goods or of any interest therein operates as a
contract to sell.
(3) There may be a sale of a part interest in existing identified goods.
(4) An undivided share in an identified bulk of fungible
goods is sufficiently identified to be sold although the quantity of the bulk is not determined. Any agreed proportion of
such a bulk or any quantity thereof agreed upon by number,
weight or other measure may to the extent of the seller's interest in the bulk be sold to the buyer who then becomes an
owner in common.
(5) "Lot" means a parcel or a single article which is the
subject matter of a separate sale or delivery, whether or not it
is sufficient to perform the contract.
(6) "Commercial unit" means such a unit of goods as by
commercial usage is a single whole for purposes of sale and
division of which materially impairs its character or value on
the market or in use. A commercial unit may be a single article (as a machine) or a set of articles (as a suite of furniture or
an assortment of sizes) or a quantity (as a bale, gross, or carload) or any other unit treated in use or in the relevant market
as a single whole. [1965 ex.s. c 157 § 2-105. Subds. (1), (2),
(3), (4), cf. former RCW sections: (i) RCW 63.04.060; 1925
ex.s. c 142 § 5; RRS § 5836-5. (ii) RCW 63.04.070; 1925
ex.s. c 142 § 6; RRS § 5836-6. (iii) RCW 63.04.755; 1925
ex.s. c 142 § 76; RRS § 5836-76; formerly RCW 63.04.010.]
62A.2-201
(4) "Cancellation" occurs when either party puts an end
to the contract for breach by the other and its effect is the
same as that of "termination" except that the cancelling party
also retains any remedy for breach of the whole contract or
any unperformed balance. [1965 ex.s. c 157 § 2-106. Subd.
(1) cf. former RCW 63.04.020; 1925 ex.s. c 142 § 1; RRS §
5836-1. Subd. (2) cf. former RCW sections: (i) RCW
63.04.120; 1925 ex.s. c 142 § 11; RRS § 5836-11. (ii) RCW
63.04.450; 1925 ex.s. c 142 § 44; RRS § 5836-44. (iii) RCW
63.04.700; 1925 ex.s. c 142 § 69; RRS § 5836-69.]
62A.2-107
62A.2-107 Goods to be severed from realty: Recording. (1) A contract for the sale of minerals or the like including oil and gas or a structure or its materials to be removed
from realty is a contract for the sale of goods within this Article if they are to be severed by the seller but until severance a
purported present sale thereof which is not effective as a
transfer of an interest in land is effective only as a contract to
sell.
(2) A contract for the sale apart from the land of growing
crops or other things attached to realty and capable of severance without material harm thereto but not described in subsection (1) or of timber to be cut is a contract for the sale of
goods within this Article whether the subject matter is to be
severed by the buyer or by the seller even though it forms part
of the realty at the time of contracting, and the parties can by
identification effect a present sale before severance.
(3) The provisions of this section are subject to any third
party rights provided by the law relating to realty records, and
the contract for sale may be executed and recorded as a document transferring an interest in land and shall then constitute
notice to third parties of the buyer's rights under the contract
for sale. [1981 c 41 § 3; 1965 ex.s. c 157 § 2-107. Cf. former
RCW sections: (i) RCW 63.04.755(1); 1925 ex.s. c 142 § 76;
RRS § 5836-76; formerly RCW 63.04.010. (ii) RCW
65.08.040; Code 1881 § 2327; 1863 p 413 § 4; 1854 p 404 §
4; RRS § 5827.]
Effective date—1981 c 41: See RCW 62A.11-101.
62A.2-201
62A.2-106
62A.2-106 Definitions: "Contract"; "agreement";
"contract for sale"; "sale"; "present sale"; "conforming" to contract; "termination"; "cancellation". (1) In
this Article unless the context otherwise requires "contract"
and "agreement" are limited to those relating to the present or
future sale of goods. "Contract for sale" includes both a
present sale of goods and a contract to sell goods at a future
time. A "sale" consists in the passing of title from the seller to
the buyer for a price (RCW 62A.2-401). A "present sale"
means a sale which is accomplished by the making of the
contract.
(2) Goods or conduct including any part of a performance are "conforming" or conform to the contract when
they are in accordance with the obligations under the contract.
(3) "Termination" occurs when either party pursuant to a
power created by agreement or law puts an end to the contract
otherwise than for its breach. On "termination" all obligations
which are still executory on both sides are discharged but any
right based on prior breach or performance survives.
(2004 Ed.)
62A.2-201 Formal requirements; statute of frauds.
(1) Except as otherwise provided in this section a contract for
the sale of goods for the price of five hundred dollars or more
is not enforceable by way of action or defense unless there is
some writing sufficient to indicate that a contract for sale has
been made between the parties and signed by the party
against whom enforcement is sought or by his authorized
agent or broker. A writing is not insufficient because it omits
or incorrectly states a term agreed upon but the contract is not
enforceable under this paragraph beyond the quantity of
goods shown in such writing.
(2) Between merchants if within a reasonable time a
writing in confirmation of the contract and sufficient against
the sender is received and the party receiving it has reason to
know its contents, it satisfies the requirements of subsection
(1) against such party unless written notice of objection to its
contents is given within ten days after it is received.
(3) A contract which does not satisfy the requirements of
subsection (1) but which is valid in other respects is enforceable
[Title 62A RCW—page 9]
62A.2-202
Title 62A RCW: Uniform Commercial Code
(a) if the goods are to be specially manufactured for the
buyer and are not suitable for sale to others in the ordinary
course of the seller's business and the seller, before notice of
repudiation is received and under circumstances which reasonably indicate that the goods are for the buyer, has made
either a substantial beginning of their manufacture or commitments for their procurement; or
(b) if the party against whom enforcement is sought
admits in his pleading, testimony or otherwise in court that a
contract for sale was made, but the contract is not enforceable
under this provision beyond the quantity of goods admitted;
or
(c) with respect to goods for which payment has been
made and accepted or which have been received and accepted
(RCW 62A.2-606). [1965 ex.s c 157 § 2-201. Cf. former
RCW 63.04.050; 1925 ex.s. c 142 § 4; RRS § 5836-4; prior:
Code 1881 § 2326.]
Statute of frauds: RCW 19.36.010.
62A.2-202
62A.2-202 Final written expression: Parol or extrinsic evidence. Terms with respect to which the confirmatory
memoranda of the parties agree or which are otherwise set
forth in a writing intended by the parties as a final expression
of their agreement with respect to such terms as are included
therein may not be contradicted by evidence of any prior
agreement or of a contemporaneous oral agreement but may
be explained or supplemented
(a) by course of dealing or usage of trade (RCW 62A.1205) or by course of performance (RCW 62A.2-208); and
(b) by evidence of consistent additional terms unless the
court finds the writing to have been intended also as a complete and exclusive statement of the terms of the agreement.
[1965 ex.s. c 157 § 2-202.]
62A.2-203
62A.2-203 Seals inoperative. The affixing of a seal to
a writing evidencing a contract for sale or an offer to buy or
sell goods does not constitute the writing a sealed instrument
and the law with respect to sealed instruments does not apply
to such contract or offer. [1965 ex.s. c 157 § 2-203. Cf.
former RCW 63.04.040; 1925 ex.s. c 142 § 3; RRS § 5836-3.]
Corporate seals—Effect of absence from instrument: RCW 64.04.105.
62A.2-204
62A.2-204 Formation in general. (1) A contract for
sale of goods may be made in any manner sufficient to show
agreement, including conduct by both parties which recognizes the existence of such a contract.
(2) An agreement sufficient to constitute a contract for
sale may be found even though the moment of its making is
undetermined.
(3) Even though one or more terms are left open a contract for sale does not fail for indefiniteness if the parties have
intended to make a contract and there is a reasonably certain
basis for giving an appropriate remedy. [1965 ex.s. c 157 §
2-204. Cf. former RCW sections: (i) RCW 63.04.020; 1925
ex.s. c 142 § 1; RRS § 5836-1. (ii) RCW 63.04.040; 1925
ex.s. c 142 § 3; RRS § 5836-3.]
62A.2-205
62A.2-205 Firm offers. An offer by a merchant to buy
or sell goods in a signed writing which by its terms gives
assurance that it will be held open is not revocable, for lack of
[Title 62A RCW—page 10]
consideration, during the time stated or if no time is stated for
a reasonable time, but in no event may such period of irrevocability exceed three months; but any such term of assurance
on a form supplied by the offeree must be separately signed
by the offeror. [1965 ex.s. c 157 § 2-205. Cf. former RCW
sections: (i) RCW 63.04.020; 1925 ex.s. c 142 § 1; RRS §
5836-1. (ii) RCW 63.04.040; 1925 ex.s. c 142 § 3; RRS §
5836-3.]
62A.2-206
62A.2-206 Offer and acceptance in formation of contract. (1) Unless otherwise unambiguously indicated by the
language or circumstances
(a) an offer to make a contract shall be construed as inviting acceptance in any manner and by any medium reasonable
in the circumstances;
(b) an order or other offer to buy goods for prompt or
current shipment shall be construed as inviting acceptance
either by a prompt promise to ship or by the prompt or current
shipment of conforming or non-conforming goods, but such a
shipment of non-conforming goods does not constitute an
acceptance if the seller seasonably notifies the buyer that the
shipment is offered only as an accommodation to the buyer.
(2) Where the beginning of a requested performance is a
reasonable mode of acceptance an offeror who is not notified
of acceptance within a reasonable time may treat the offer as
having lapsed before acceptance. [1965 ex.s. c 157 § 2-206.
Cf. former RCW sections: (i) RCW 63.04.020; 1925 ex.s. c
142 § 1; RRS § 5836-1. (ii) RCW 63.04.040; 1925 ex.s. c 142
§ 3; RRS § 5836-3.]
62A.2-207
62A.2-207 Additional terms in acceptance or confirmation. (1) A definite and seasonable expression of acceptance or a written confirmation which is sent within a reasonable time operates as an acceptance even though it states
terms additional to or different from those offered or agreed
upon, unless acceptance is expressly made conditional on
assent to the additional or different terms.
(2) The additional terms are to be construed as proposals
for addition to the contract. Between merchants such terms
become part of the contract unless:
(a) the offer expressly limits acceptance to the terms of
the offer;
(b) they materially alter it; or
(c) notification of objection to them has already been
given or is given within a reasonable time after notice of them
is received.
(3) Conduct by both parties which recognizes the existence of a contract is sufficient to establish a contract for sale
although the writings of the parties do not otherwise establish
a contract. In such case the terms of the particular contract
consist of those terms on which the writings of the parties
agree, together with any supplementary terms incorporated
under any other provisions of this Title. [1965 ex.s. c 157 §
2-207. Cf. former RCW sections: (i) RCW 63.04.020; 1925
ex.s. c 142 § 1; RRS § 5836-1. (ii) RCW 63.04.040; 1925
ex.s. c 142 § 3; RRS § 5836-3.]
62A.2-208
62A.2-208 Course of performance or practical construction. (1) Where the contract for sale involves repeated
occasions for performance by either party with knowledge of
(2004 Ed.)
Sales
the nature of the performance and opportunity for objection
to it by the other, any course of performance accepted or
acquiesced in without objection shall be relevant to determine the meaning of the agreement.
(2) The express terms of the agreement and any such
course of performance, as well as any course of dealing and
usage of trade, shall be construed whenever reasonable as
consistent with each other; but when such construction is
unreasonable, express terms shall control course of performance and course of performance shall control both course of
dealing and usage of trade (RCW 62A.1-205).
(3) Subject to the provisions of the next section on modification and waiver, such course of performance shall be relevant to show a waiver or modification of any term inconsistent with such course of performance. [1965 ex.s. c 157 § 2208.]
62A.2-209
62A.2-209 Modification, rescission and waiver. (1)
An agreement modifying a contract within this Article needs
no consideration to be binding.
(2) A signed agreement which excludes modification or
rescission except by a signed writing cannot be otherwise
modified or rescinded, but except as between merchants such
a requirement on a form supplied by the merchant must be
separately signed by the other party.
(3) The requirements of the statute of frauds section of
this Article (RCW 62A.2-201) must be satisfied if the contract as modified is within its provisions.
(4) Although an attempt at modification or rescission
does not satisfy the requirements of subsection (2) or (3) it
can operate as a waiver.
(5) A party who has made a waiver affecting an executory portion of the contract may retract the waiver by reasonable notification received by the other party that strict performance will be required of any term waived, unless the retraction would be unjust in view of a material change of position
in reliance on the waiver. [1965 ex.s. c 157 § 2-209.]
62A.2-210
62A.2-210 Delegation of performance; assignment of
rights. (1) A party may perform his duty through a delegate
unless otherwise agreed or unless the other party has a substantial interest in having his original promisor perform or
control the acts required by the contract. No delegation of
performance relieves the party delegating of any duty to perform or any liability for breach.
(2) Except as otherwise provided in RCW 62A.9A-406,
unless otherwise agreed, all rights of either seller or buyer
can be assigned except where the assignment would materially change the duty of the other party, or increase materially
the burden or risk imposed on him by his contract, or impair
materially his chance of obtaining return performance. A
right to damages for breach of the whole contract or a right
arising out of the assignor's due performance of his entire
obligation can be assigned despite agreement otherwise.
(3) The creation, attachment, perfection, or enforcement
of a security interest in the seller's interest under a contract is
not a transfer that materially changes the duty of or increases
materially the burden or risk imposed on the buyer or impairs
materially the buyer's chance of obtaining return performance within the purview of subsection (2) of this section
(2004 Ed.)
62A.2-303
unless, and then only to the extent that, enforcement actually
results in a delegation of material performance of the seller.
Even in that event, the creation, attachment, perfection, and
enforcement of the security interest remain effective, but (i)
the seller is liable to the buyer for damages caused by the delegation to the extent that the damages could not reasonably
be prevented by the buyer, and (ii) a court having jurisdiction
may grant other appropriate relief, including cancellation of
the contract for sale or an injunction against enforcement of
the security interest or consummation of the enforcement.
(4) Unless the circumstances indicate the contrary a prohibition of assignment of "the contract" is to be construed as
barring only the delegation to the assignee of the assignor's
performance.
(5) An assignment of "the contract" or of "all my rights
under the contract" or an assignment in similar general terms
is an assignment of rights and unless the language or the circumstances (as in an assignment for security) indicate the
contrary, it is a delegation of performance of the duties of the
assignor and its acceptance by the assignee constitutes a
promise by him to perform those duties. This promise is
enforceable by either the assignor or the other party to the
original contract.
(6) The other party may treat any assignment which delegates performance as creating reasonable grounds for insecurity and may without prejudice to his rights against the
assignor demand assurances from the assignee (RCW 62A.2609).
(7) Notwithstanding subsections (2) and (3) of this section, an assignment that would be a breach but for the provisions of RCW 62A.9A-406 may create reasonable grounds
for insecurity with respect to the due performance of the
assignor (RCW 62A.2-609). [2000 c 250 § 9A-804; 1965
ex.s. c 157 § 2-210.]
Effective date—2000 c 250: See RCW 62A.9A-701.
62A.2-301
62A.2-301 General obligations of parties. The obligation of the seller is to transfer and deliver and that of the
buyer is to accept and pay in accordance with the contract.
[1965 ex.s. c 157 § 2-301. Cf. former RCW sections: (i)
RCW 63.04.120; 1925 ex.s. c 142 § 11; RRS § 5836-11. (ii)
RCW 63.04.420; 1925 ex.s. c 142 § 41; RRS § 5836-41.]
62A.2-302
62A.2-302 Unconscionable contract or clause. (1) If
the court as a matter of law finds the contract or any clause of
the contract to have been unconscionable at the time it was
made the court may refuse to enforce the contract, or it may
enforce the remainder of the contract without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result.
(2) When it is claimed or appears to the court that the
contract or any clause thereof may be unconscionable the parties shall be afforded a reasonable opportunity to present evidence as to its commercial setting, purpose and effect to aid
the court in making the determination. [1965 ex.s. c 157 § 2302.]
62A.2-303
62A.2-303 Allocation or division of risks. Where this
Article allocates a risk or a burden as between the parties
"unless otherwise agreed", the agreement may not only shift
[Title 62A RCW—page 11]
62A.2-304
Title 62A RCW: Uniform Commercial Code
the allocation but may also divide the risk or burden. [1965
ex.s. c 157 § 2-303.]
62A.2-304
62A.2-304 Price payable in money, goods, realty, or
otherwise. (1) The price can be made payable in money or
otherwise. If it is payable in whole or in part in goods each
party is a seller of the goods which he is to transfer.
(2) Even though all or part of the price is payable in an
interest in realty the transfer of the goods and the seller's obligations with reference to them are subject to this Article, but
not the transfer of the interest in realty or the transferor's obligations in connection therewith. [1965 ex.s. c 157 § 2-304.
Cf. former RCW 63.04.100(2), (3); 1925 ex.s. c 142 § 9; RRS
§ 5836-9.]
62A.2-305
62A.2-305 Open price term. (1) The parties if they so
intend can conclude a contract for sale even though the price
is not settled. In such a case the price is a reasonable price at
the time for delivery if
(a) nothing is said as to price; or
(b) the price is left to be agreed by the parties and they
fail to agree; or
(c) the price is to be fixed in terms of some agreed market or other standard as set or recorded by a third person or
agency and it is not so set or recorded.
(2) A price to be fixed by the seller or by the buyer means
a price for him to fix in good faith.
(3) When a price left to be fixed otherwise than by agreement of the parties fails to be fixed through fault of one party
the other may at his option treat the contract as cancelled or
himself fix a reasonable price.
(4) Where, however, the parties intend not to be bound
unless the price be fixed or agreed and it is not fixed or agreed
there is no contract. In such a case the buyer must return any
goods already received or if unable so to do must pay their
reasonable value at the time of delivery and the seller must
return any portion of the price paid on account. [1965 ex.s. c
157 § 2-305. Cf. former RCW sections: (i) RCW 63.04.100;
1925 ex.s. c 142 § 9; RRS § 5836-9. (ii) RCW 63.04.110;
1925 ex.s. c 142 § 10; RRS § 5836-10. Subd. (3) cf. former
RCW 63.04.120(2); 1925 ex.s. c 142 § 11; RRS § 5836-11.]
62A.2-306
62A.2-306 Output, requirements and exclusive dealings. (1) A term which measures the quantity by the output
of the seller or the requirements of the buyer means such
actual output or requirements as may occur in good faith,
except that no quantity unreasonably disproportionate to any
stated estimate or in the absence of a stated estimate to any
normal or otherwise comparable prior output or requirements
may be tendered or demanded.
(2) A lawful agreement by either the seller or the buyer
for exclusive dealing in the kind of goods concerned imposes
unless otherwise agreed an obligation by the seller to use best
efforts to supply the goods and by the buyer to use best efforts
to promote their sale. [1965 ex.s. c 157 § 2-306.]
62A.2-307
62A.2-307 Delivery in single lot or several lots.
Unless otherwise agreed all goods called for by a contract for
sale must be tendered in a single delivery and payment is due
only on such tender but where the circumstances give either
[Title 62A RCW—page 12]
party the right to make or demand delivery in lots the price if
it can be apportioned may be demanded for each lot. [1965
ex.s. c 157 § 2-307. Cf. former RCW 63.04.460(1); 1925
ex.s. c 142 § 45; RRS § 5836-45.]
62A.2-308
62A.2-308 Absence of specified place for delivery.
Unless otherwise agreed
(a) the place for delivery of goods is the seller's place of
business or if he has none his residence; but
(b) in a contract for sale of identified goods which to the
knowledge of the parties at the time of contracting are in
some other place, that place is the place for their delivery; and
(c) documents of title may be delivered through customary banking channels. [1965 ex.s. c 157 § 2-308. Subd. (a),
(b) cf. former RCW 63.04.440(1); 1925 ex.s. c 142 § 43; RRS
§ 5836-43.]
62A.2-309
62A.2-309 Absence of specific time provisions; notice
of termination. (1) The time for shipment or delivery or any
other action under a contract if not provided in this Article or
agreed upon shall be a reasonable time.
(2) Where the contract provides for successive performances but is indefinite in duration it is valid for a reasonable
time but unless otherwise agreed may be terminated at any
time by either party.
(3) Termination of a contract by one party except on the
happening of an agreed event requires that reasonable notification be received by the other party and an agreement dispensing with notification is invalid if its operation would be
unconscionable. [1965 ex.s. c 157 § 2-309. Cf. former RCW
sections: (i) RCW 63.04.440(2); 1925 ex.s. c 142 § 43; RRS
§ 5836-43. (ii) RCW 63.04.460(2); 1925 ex.s. c 142 § 45;
RRS § 5836-45. (iii) RCW 63.04.480(1); 1925 ex.s. c 142 §
47; RRS § 5836-47. (iv) RCW 63.04.490; 1925 ex.s. c 142 §
48; RRS § 5836-48.]
62A.2-310
62A.2-310 Open time for payment or running of
credit; authority to ship under reservation. Unless otherwise agreed
(a) payment is due at the time and place at which the
buyer is to receive the goods even though the place of shipment is the place of delivery; and
(b) if the seller is authorized to send the goods he may
ship them under reservation, and may tender the documents
of title, but the buyer may inspect the goods after their arrival
before payment is due unless such inspection is inconsistent
with the terms of the contract (RCW 62A.2-513); and
(c) if delivery is authorized and made by way of documents of title otherwise than by subsection (b) then payment
is due at the time and place at which the buyer is to receive
the documents regardless of where the goods are to be
received; and
(d) where the seller is required or authorized to ship the
goods on credit the credit period runs from the time of shipment but post-dating the invoice or delaying its dispatch will
correspondingly delay the starting of the credit period. [1965
ex.s. c 157 § 2-310. Cf. former RCW sections: (i) RCW
63.04.430; 1925 ex.s. c 142 § 42; RRS § 5836-42. (ii) RCW
63.04.470(1); 1925 ex.s. c 142 § 46; RRS § 5836-46. (iii)
RCW 63.04.480(2); 1925 ex.s. c 142 § 47; RRS § 5836-47.]
(2004 Ed.)
Sales
62A.2-311 Options and cooperation respecting performance. (1) An agreement for sale which is otherwise sufficiently definite (subsection (3) of RCW 62A.2-204) to be a
contract is not made invalid by the fact that it leaves particulars of performance to be specified by one of the parties. Any
such specification must be made in good faith and within limits set by commercial reasonableness.
(2) Unless otherwise agreed specifications relating to
assortment of the goods are at the buyer's option and except
as otherwise provided in subsections (1)(c) and (3) of RCW
62A.2-319 specifications or arrangements relating to shipment are at the seller's option.
(3) Where such specification would materially affect the
other party's performance but is not seasonably made or
where one party's cooperation is necessary to the agreed performance of the other but is not seasonably forthcoming, the
other party in addition to all other remedies
(a) is excused for any resulting delay in his own performance; and
(b) may also either proceed to perform in any reasonable
manner or after the time for a material part of his own performance treat the failure to specify or to cooperate as a breach
by failure to deliver or accept the goods. [1965 ex.s. c 157 §
2-311.]
62A.2-311
62A.2-312 Warranty of title and against infringement; buyer's obligation against infringement. (1) Subject to subsection (2) there is in a contract for sale a warranty
by the seller that
(a) the title conveyed shall be good, and its transfer rightful; and
(b) the goods shall be delivered free from any security
interest or other lien or encumbrance of which the buyer at
the time of contracting has no knowledge.
(2) A warranty under subsection (1) will be excluded or
modified only by specific language or by circumstances
which give the buyer reason to know that the person selling
does not claim title in himself or that he is purporting to sell
only such right or title as he or a third person may have.
(3) Unless otherwise agreed a seller who is a merchant
regularly dealing in goods of the kind warrants that the goods
shall be delivered free of the rightful claim of any third person by way of infringement or the like but a buyer who furnishes specifications to the seller must hold the seller harmless against any such claim which arises out of compliance
with the specifications. [1965 ex.s. c 157 § 2-312. Cf. former
RCW 63.04.140; 1925 ex.s. c 142 § 13; RRS § 5836-13.]
62A.2-312
62A.2-313 Express warranties by affirmation, promise, description, sample. (1) Express warranties by the seller
are created as follows:
(a) Any affirmation of fact or promise made by the seller
to the buyer which relates to the goods and becomes part of
the basis of the bargain creates an express warranty that the
goods shall conform to the affirmation or promise.
(b) Any description of the goods which is made part of
the basis of the bargain creates an express warranty that the
goods shall conform to the description.
(c) Any sample or model which is made part of the basis
of the bargain creates an express warranty that the whole of
the goods shall conform to the sample or model.
62A.2-316
(2) It is not necessary to the creation of an express warranty that the seller use formal words such as "warrant" or
"guarantee" or that he have a specific intention to make a
warranty, but an affirmation merely of the value of the goods
or a statement purporting to be merely the seller's opinion or
commendation of the goods does not create a warranty.
[1965 ex.s. c 157 § 2-313. Cf. former RCW sections: (i)
RCW 63.04.130; 1925 ex.s. c 142 § 12; RRS § 5836-12. (ii)
RCW 63.04.150; 1925 ex.s. c 142 § 14; RRS § 5836-14. (iii)
RCW 63.04.170; 1925 ex.s. c 142 § 16; RRS § 5836-16.]
Motor vehicle express warranties: Chapter 19.118 RCW.
62A.2-314
62A.2-314 Implied warranty: Merchantability;
usage of trade. (1) Unless excluded or modified (RCW
62A.2-316), a warranty that the goods shall be merchantable
is implied in a contract for their sale if the seller is a merchant
with respect to goods of that kind. Under this section the serving for value of food or drink to be consumed either on the
premises or elsewhere is a sale.
(2) Goods to be merchantable must be at least such as
(a) pass without objection in the trade under the contract
description; and
(b) in the case of fungible goods, are of fair average quality within the description; and
(c) are fit for the ordinary purposes for which such goods
are used; and
(d) run, within the variations permitted by the agreement,
of even kind, quality and quantity within each unit and
among all units involved; and
(e) are adequately contained, packaged, and labeled as
the agreement may require; and
(f) conform to the promises or affirmations of fact made
on the container or label if any.
(3) Unless excluded or modified (RCW 62A.2-316)
other implied warranties may arise from course of dealing or
usage of trade. [1965 ex.s. c 157 § 2-314. Cf. former RCW
63.04.160(2); 1925 ex.s. c 142 § 15; RRS § 5836-15.]
62A.2-315
62A.2-315 Implied warranty: Fitness for particular
purpose. Where the seller at the time of contracting has reason to know any particular purpose for which the goods are
required and that the buyer is relying on the seller's skill or
judgment to select or furnish suitable goods, there is unless
excluded or modified under the next section an implied warranty that the goods shall be fit for such purpose. [1965 ex.s.
c 157 § 2-315. Cf. former RCW 63.04.160(1), (4), (5); 1925
ex.s. c 142 § 15; RRS § 5836-15.]
62A.2-313
(2004 Ed.)
62A.2-316
62A.2-316 Exclusion or modification of warranties.
(1) Words or conduct relevant to the creation of an express
warranty and words or conduct tending to negate or limit
warranty shall be construed wherever reasonable as consistent with each other; but subject to the provisions of this Article on parol or extrinsic evidence (RCW 62A.2-202) negation
or limitation is inoperative to the extent that such construction is unreasonable.
(2) Subject to subsection (3), to exclude or modify the
implied warranty of merchantability or any part of it the language must mention merchantability and in case of a writing
must be conspicuous, and to exclude or modify any implied
[Title 62A RCW—page 13]
62A.2-317
Title 62A RCW: Uniform Commercial Code
warranty of fitness the exclusion must be by a writing and
conspicuous. Language to exclude all implied warranties of
fitness is sufficient if it states, for example, that "There are no
warranties which extend beyond the description on the face
hereof."
(3) Notwithstanding subsection (2)
(a) unless the circumstances indicate otherwise, all
implied warranties are excluded by expressions like "as is",
"with all faults" or other language which in common understanding calls the buyer's attention to the exclusion of warranties and makes plain that there is no implied warranty; and
(b) when the buyer before entering into the contract has
examined the goods or the sample or model as fully as he
desired or has refused to examine the goods there is no
implied warranty with regard to defects which an examination ought in the circumstances to have revealed to him;
(c) an implied warranty can also be excluded or modified
by course of dealing or course of performance or usage of
trade; and
(d) in sales of livestock, including but not limited to,
horses, mules, cattle, sheep, swine, goats, poultry, and rabbits, there are no implied warranties as defined in this article
that the livestock are free from sickness or disease: PROVIDED, That the seller has complied with all state and federal laws and regulations that apply to animal health and disease, and the seller is not guilty of fraud, deceit or misrepresentation.
(4) Notwithstanding the provisions of subsections (2)
and (3) of this section and the provisions of RCW 62A.2-719,
as now or hereafter amended, in any case where goods are
purchased primarily for personal, family or household use
and not for commercial or business use, disclaimers of the
warranty of merchantability or fitness for particular purpose
shall not be effective to limit the liability of merchant sellers
except insofar as the disclaimer sets forth with particularity
the qualities and characteristics which are not being warranted. Remedies for breach of warranty can be limited in
accordance with the provisions of this Article on liquidation
or limitation of damages and on contractual modification of
remedy (RCW 62A.2-718 and RCW 62A.2-719). [1982 c
199 § 1; 1974 ex.s. c 180 § 1; 1974 ex.s. c 78 § 1; 1965 ex.s.
c 157 § 2-316. Subd. (3)(b) cf. former RCW 63.04.160(3);
1925 ex.s. c 142 § 15; RRS § 5836-15. Subd. (3)(c) cf. former
RCW 63.04.720; 1925 ex.s. c 142 § 71; RRS § 5836-71.]
Lease or rental of personal property—Disclaimer of warranty of merchantability or fitness: RCW 63.18.010.
62A.2-317
62A.2-317 Cumulation and conflict of warranties
express or implied. Warranties whether express or implied
shall be construed as consistent with each other and as cumulative, but if such construction is unreasonable the intention
of the parties shall determine which warranty is dominant. In
ascertaining that intention the following rules apply:
(a) Exact or technical specifications displace an inconsistent sample or model or general language of description.
(b) A sample from an existing bulk displaces inconsistent general language of description.
(c) Express warranties displace inconsistent implied
warranties other than an implied warranty of fitness for a particular purpose. [1965 ex.s. c 157 § 2-317. Cf. former RCW
[Title 62A RCW—page 14]
sections: RCW 63.04.150 through 63.04.170; 1925 ex.s. c
142 §§ 14 through 16; RRS §§ 5836-14 through 5836-16.]
62A.2-318
62A.2-318 Third party beneficiaries of warranties
express or implied. A seller's warranty whether express or
implied extends to any natural person who is in the family or
household of his buyer or who is a guest in his home if it is
reasonable to expect that such person may use, consume or be
affected by the goods and who is injured in person by breach
of the warranty. A seller may not exclude or limit the operation of this section. [1965 ex.s. c 157 § 2-318.]
62A.2-319
62A.2-319 F.O.B. and F.A.S. terms. (1) Unless otherwise agreed the term F.O.B. (which means "free on board") at
a named place, even though used only in connection with the
stated price, is a delivery term under which
(a) when the term is F.O.B. the place of shipment, the
seller must at that place ship the goods in the manner provided in this Article (RCW 62A.2-504) and bear the expense
and risk of putting them into the possession of the carrier; or
(b) when the term is F.O.B. the place of destination, the
seller must at his own expense and risk transport the goods to
that place and there tender delivery of them in the manner
provided in this Article (RCW 62A.2-503);
(c) when under either (a) or (b) the term is also F.O.B.
vessel, car or other vehicle, the seller must in addition at his
own expense and risk load the goods on board. If the term is
F.O.B. vessel the buyer must name the vessel and in an
appropriate case the seller must comply with the provisions
of this Article on the form of bill of lading (RCW 62A.2323).
(2) Unless otherwise agreed the term F.A.S. vessel
(which means "free alongside") at a named port, even though
used only in connection with the stated price, is a delivery
term under which the seller must
(a) at his own expense and risk deliver the goods alongside the vessel in the manner usual in that port or on a dock
designated and provided by the buyer; and
(b) obtain and tender a receipt for the goods in exchange
for which the carrier is under a duty to issue a bill of lading.
(3) Unless otherwise agreed in any case falling within
subsection (1)(a) or (c) or subsection (2) the buyer must seasonably give any needed instructions for making delivery,
including when the term is F.A.S. or F.O.B. the loading berth
of the vessel and in an appropriate case its name and sailing
date. The seller may treat the failure of needed instructions as
a failure of cooperation under this Article (RCW 62A.2-311).
He may also at his option move the goods in any reasonable
manner preparatory to delivery or shipment.
(4) Under the term F.O.B. vessel or F.A.S. unless otherwise agreed the buyer must make payment against tender of
the required documents and the seller may not tender nor the
buyer demand delivery of the goods in substitution for the
documents. [1965 ex.s. c 157 § 2-319.]
62A.2-320
62A.2-320 C.I.F. and C.&F. terms. (1) The term
C.I.F. means that the price includes in a lump sum the cost of
the goods and the insurance and freight to the named destination. The term C.&F. or C.F. means that the price so includes
cost and freight to the named destination.
(2004 Ed.)
Sales
(2) Unless otherwise agreed and even though used only
in connection with the stated price and destination, the term
C.I.F. destination or its equivalent requires the seller at his
own expense and risk to
(a) put the goods into the possession of a carrier at the
port for shipment and obtain a negotiable bill or bills of lading covering the entire transportation to the named destination; and
(b) load the goods and obtain a receipt from the carrier
(which may be contained in the bill of lading) showing that
the freight has been paid or provided for; and
(c) obtain a policy or certificate of insurance, including
any war risk insurance, of a kind and on terms then current at
the port of shipment in the usual amount, in the currency of
the contract, shown to cover the same goods covered by the
bill of lading and providing for payment of loss to the order
of the buyer or for the account of whom it may concern; but
the seller may add to the price the amount of the premium for
any such war risk insurance; and
(d) prepare an invoice of the goods and procure any other
documents required to effect shipment or to comply with the
contract; and
(e) forward and tender with commercial promptness all
the documents in due form and with any indorsement necessary to perfect the buyer's rights.
(3) Unless otherwise agreed the term C.&F. or its equivalent has the same effect and imposes upon the seller the
same obligations and risks as a C.I.F. term except the obligation as to insurance.
(4) Under the term C.I.F. or C.&F. unless otherwise
agreed the buyer must make payment against tender of the
required documents and the seller may not tender nor the
buyer demand delivery of the goods in substitution for the
documents. [1965 ex.s. c 157 § 2-320.]
62A.2-321
62A.2-321 C.I.F. or C.&F.: "Net landed weights";
"payment on arrival"; warranty of condition on arrival.
Under a contract containing a term C.I.F. or C.&F.
(1) Where the price is based on or is to be adjusted
according to "net landed weights", "delivered weights", "out
turn" quantity or quality or the like, unless otherwise agreed
the seller must reasonably estimate the price. The payment
due on tender of the documents called for by the contract is
the amount so estimated, but after final adjustment of the
price a settlement must be made with commercial promptness.
(2) An agreement described in subsection (1) or any warranty of quality or condition of the goods on arrival places
upon the seller the risk of ordinary deterioration, shrinkage
and the like in transportation but has no effect on the place or
time of identification to the contract for sale or delivery or on
the passing of the risk of loss.
(3) Unless otherwise agreed where the contract provides
for payment on or after arrival of the goods the seller must
before payment allow such preliminary inspection as is feasible; but if the goods are lost delivery of the documents and
payment are due when the goods should have arrived. [1965
ex.s. c 157 § 2-321.]
(2004 Ed.)
62A.2-325
62A.2-322
62A.2-322 Delivery "ex-ship". (1) Unless otherwise
agreed a term for delivery of goods "ex-ship" (which means
from the carrying vessel) or in equivalent language is not
restricted to a particular ship and requires delivery from a
ship which has reached a place at the named port of destination where goods of the kind are usually discharged.
(2) Under such a term unless otherwise agreed
(a) the seller must discharge all liens arising out of the
carriage and furnish the buyer with a direction which puts the
carrier under a duty to deliver the goods; and
(b) the risk of loss does not pass to the buyer until the
goods leave the ship's tackle or are otherwise properly
unloaded. [1965 ex.s. c 157 § 2-322.]
62A.2-323
62A.2-323 Form of bill of lading required in overseas
shipment; "overseas". (1) Where the contract contemplates
overseas shipment and contains a term C.I.F. or C.&F. or
F.O.B. vessel, the seller unless otherwise agreed must obtain
a negotiable bill of lading stating that the goods have been
loaded on board or, in the case of a term C.I.F. or C.&F.,
received for shipment.
(2) Where in a case within subsection (1) a bill of lading
has been issued in a set of parts, unless otherwise agreed if
the documents are not to be sent from abroad the buyer may
demand tender of the full set; otherwise only one part of the
bill of lading need be tendered. Even if the agreement
expressly requires a full set
(a) due tender of a single part is acceptable within the
provisions of this Article on cure of improper delivery (subsection (1) of RCW 62A.2-508); and
(b) even though the full set is demanded, if the documents are sent from abroad the person tendering an incomplete set may nevertheless require payment upon furnishing
an indemnity which the buyer in good faith deems adequate.
(3) A shipment by water or by air or a contract contemplating such shipment is "overseas" insofar as by usage of
trade or agreement it is subject to the commercial, financing
or shipping practices characteristic of international deep
water commerce. [1965 ex.s. c 157 § 2-323.]
62A.2-324
62A.2-324 "No arrival, no sale" term. Under a term
"no arrival, no sale" or terms of like meaning, unless otherwise agreed,
(a) the seller must properly ship conforming goods and if
they arrive by any means he must tender them on arrival but
he assumes no obligation that the goods will arrive unless he
has caused the non-arrival; and
(b) where without fault of the seller the goods are in part
lost or have so deteriorated as no longer to conform to the
contract or arrive after the contract time, the buyer may proceed as if there had been casualty to identified goods (RCW
62A.2-613). [1965 ex.s. c 157 § 2-324.]
62A.2-325
62A.2-325 "Letter of credit" term; "confirmed
credit". (1) Failure of the buyer seasonably to furnish an
agreed letter of credit is a breach of the contract for sale.
(2) The delivery to seller of a proper letter of credit suspends the buyer's obligation to pay. If the letter of credit is
dishonored, the seller may on seasonable notification to the
buyer require payment directly from him.
[Title 62A RCW—page 15]
62A.2-326
Title 62A RCW: Uniform Commercial Code
(3) Unless otherwise agreed the term "letter of credit" or
"banker's credit" in a contract for sale means an irrevocable
credit issued by a financing agency of good repute and, where
the shipment is overseas, of good international repute. The
term "confirmed credit" means that the credit must also carry
the direct obligation of such an agency which does business
in the seller's financial market. [1965 ex.s. c 157 § 2-325.]
62A.2-326
62A.2-326 Sale on approval and sale or return;
rights of creditors. (1) Unless otherwise agreed, if delivered
goods may be returned by the buyer even though they conform to the contract, the transaction is
(a) a "sale on approval" if the goods are delivered primarily for use, and
(b) a "sale or return" if the goods are delivered primarily
for resale.
(2) Goods held on approval are not subject to the claims
of the buyer's creditors until acceptance; goods held on sale
or return are subject to such claims while in the buyer's possession.
(3) Any "or return" term of a contract for sale is to be
treated as a separate contract for sale within the statute of
frauds section of this Article (RCW 62A.2-201) and as contradicting the sale aspect of the contract within the provisions
of this Article on parol or extrinsic evidence (RCW 62A.2202). [2000 c 250 § 9A-805; 1965 ex.s. c 157 § 2-326. Cf.
former RCW 63.04.200(3); 1925 ex.s. c 142 § 19; RRS §
5836-19.]
Effective date—2000 c 250: See RCW 62A.9A-701.
62A.2-327
62A.2-327 Special incidents of sale on approval and
sale or return. (1) Under a sale on approval unless otherwise
agreed
(a) although the goods are identified to the contract the
risk of loss and the title do not pass to the buyer until acceptance; and
(b) use of the goods consistent with the purpose of trial is
not acceptance but failure seasonably to notify the seller of
election to return the goods is acceptance, and if the goods
conform to the contract acceptance of any part is acceptance
of the whole; and
(c) after due notification of election to return, the return
is at the seller's risk and expense but a merchant buyer must
follow any reasonable instructions.
(2) Under a sale or return unless otherwise agreed
(a) the option to return extends to the whole or any commercial unit of the goods while in substantially their original
condition, but must be exercised seasonably; and
(b) the return is at the buyer's risk and expense. [1965
ex.s. c 157 § 2-327. Cf. former RCW 63.04.200(3); 1925
ex.s. c 142 § 19; RRS § 5836-19.]
62A.2-328
62A.2-328 Sale by auction. (1) In a sale by auction if
goods are put up in lots each lot is the subject of a separate
sale.
(2) A sale by auction is complete when the auctioneer so
announces by the fall of the hammer or in other customary
manner. Where a bid is made while the hammer is falling in
acceptance of a prior bid the auctioneer may in his discretion
[Title 62A RCW—page 16]
reopen the bidding or declare the goods sold under the bid on
which the hammer was falling.
(3) Such a sale is with reserve unless the goods are in
explicit terms put up without reserve. In an auction with
reserve the auctioneer may withdraw the goods at any time
until he announces completion of the sale. In an auction without reserve, after the auctioneer calls for bids on an article or
lot, that article or lot cannot be withdrawn unless no bid is
made within a reasonable time. In either case a bidder may
retract his bid until the auctioneer's announcement of completion of the sale, but a bidder's retraction does not revive any
previous bid.
(4) If the auctioneer knowingly receives a bid on the
seller's behalf or the seller makes or procures such a bid, and
notice has not been given that liberty for such bidding is
reserved, the buyer may at his option avoid the sale or take
the goods at the price of the last good faith bid prior to the
completion of the sale. This subsection shall not apply to any
bid at a forced sale. [1965 ex.s. c 157 § 2-328. Cf. former
RCW 63.04.220; 1925 ex.s. c 142 § 21; RRS § 5836-21.]
62A.2-401 Passing of title; reservation for security;
limited application of this section. Each provision of this
Article with regard to the rights, obligations and remedies of
the seller, the buyer, purchasers or other third parties applies
irrespective of title to the goods except where the provision
refers to such title. Insofar as situations are not covered by the
other provisions of this Article and matters concerning title
become material the following rules apply:
(1) Title to goods cannot pass under a contract for sale
prior to their identification to the contract (RCW 62A.2-501),
and unless otherwise explicitly agreed the buyer acquires by
their identification a special property as limited by this Title.
Any retention or reservation by the seller of the title (property) in goods shipped or delivered to the buyer is limited in
effect to a reservation of a security interest. Subject to these
provisions and to the provisions of the Article on Secured
Transactions (*Article 9), title to goods passes from the seller
to the buyer in any manner and on any conditions explicitly
agreed on by the parties.
(2) Unless otherwise explicitly agreed title passes to the
buyer at the time and place at which the seller completes his
performance with reference to the physical delivery of the
goods, despite any reservation of a security interest and even
though a document of title is to be delivered at a different
time or place; and in particular and despite any reservation of
a security interest by the bill of lading
(a) if the contract requires or authorizes the seller to send
the goods to the buyer but does not require him to deliver
them at destination, title passes to the buyer at the time and
place of shipment; but
(b) if the contract requires delivery at destination, title
passes on tender there.
(3) Unless otherwise explicitly agreed where delivery is
to be made without moving the goods,
(a) if the seller is to deliver a document of title, title
passes at the time when and the place where he delivers such
documents; or
(b) if the goods are at the time of contracting already
identified and no documents are to be delivered, title passes
at the time and place of contracting.
62A.2-401
(2004 Ed.)
Sales
(4) A rejection or other refusal by the buyer to receive or
retain the goods, whether or not justified, or a justified revocation of acceptance revests title to the goods in the seller.
Such revesting occurs by operation of law and is not a "sale".
[1965 ex.s. c 157 § 2-401. Cf. former RCW sections: RCW
63.04.180 through 63.04.210; 1925 ex.s. c 142 §§ 17 through
20; RRS § 5836-17 through 5836-20.]
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001. For later enactment, see Article
62A.9A RCW.
62A.2-402
62A.2-402 Rights of seller's creditors against sold
goods. (1) Except as provided in subsections (2) and (3),
rights of unsecured creditors of the seller with respect to
goods which have been identified to a contract for sale are
subject to the buyer's rights to recover the goods under this
Article (RCW 62A.2-502 and RCW 62A.2-716).
(2) A creditor of the seller may treat a sale or an identification of goods to a contract for sale as void if as against him
a retention of possession by the seller is fraudulent under any
rule of law of the state where the goods are situated, except
that retention of possession in good faith and current course
of trade by a merchant-seller for a commercially reasonable
time after a sale or identification is not fraudulent.
(3) Nothing in this Article shall be deemed to impair the
rights of creditors of the seller
(a) under the provisions of the Article on Secured Transactions (*Article 9); or
(b) where identification to the contract or delivery is
made not in current course of trade but in satisfaction of or as
security for a pre-existing claim for money, security or the
like and is made under circumstances which under any rule of
law of the state where the goods are situated would apart
from this Article constitute the transaction a fraudulent transfer or voidable preference. [1965 ex.s. c 157 § 2-402. Subd.
(2) cf. former RCW sections: (i) RCW 63.04.270; 1925 ex.s.
c 142 § 26; RRS § 5836-26. (ii) RCW 63.08.040; 1953 c 247
§ 3; 1943 c 98 § 1, part; 1939 c 122 § 1, part; 1925 ex.s. c 135
§ 2, part; Rem. Supp. 1943 § 5832, part; prior: 1901 c 109 §
1, part.]
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001. For later enactment, see Article
62A.9A RCW.
62A.2-403
62A.2-403 Power to transfer; good faith purchase of
goods; "entrusting". (1) A purchaser of goods acquires all
title which his or her transferor had or had power to transfer
except that a purchaser of a limited interest acquires rights
only to the extent of the interest purchased. A person with
voidable title has power to transfer a good title to a good faith
purchaser for value. When goods have been delivered under
a transaction of purchase the purchaser has such power even
though
(a) the transferor was deceived as to the identity of the
purchaser, or
(b) the delivery was in exchange for a check which is
later dishonored, or
(c) it was agreed that the transaction was to be a "cash
sale".
(2) Any entrusting of possession of goods to a merchant
who deals in goods of that kind gives him or her power to
(2004 Ed.)
62A.2-502
transfer all rights of the entruster to a buyer in ordinary
course of business.
(3) "Entrusting" includes any delivery and any acquiescence in retention of possession regardless of any condition
expressed between the parties to the delivery or acquiescence
and regardless of whether the procurement of the entrusting
or the possessor's disposition of the goods have been such as
to be larcenous under the criminal law.
(4) The rights of other purchasers of goods and of lien
creditors are governed by the Articles on Secured Transactions (*Article 9) and Documents of Title (Article 7). [1993
c 395 § 6-103; 1967 c 114 § 8; 1965 ex.s. c 157 § 2-403. Cf.
former RCW sections: (i) RCW 61.20.090; 1943 c 71 § 9;
Rem. Supp. 1943 § 11548-38. (ii) RCW 63.04.210(4); 1925
ex.s. c 142 § 20; RRS § 5836-20. (iii) RCW 63.04.240; 1925
ex.s. c 142 § 23; RRS § 5836-23. (iv) RCW 63.04.250; 1925
ex.s. c 142 § 24; RRS § 5836-24. (v) RCW 63.04.260; 1925
ex.s. c 142 § 25; RRS § 5836-25. (vi) RCW 65.08.040; Code
1881 § 2327; 1863 p 413 § 4; 1854 p 404 § 4; RRS § 5827.]
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001. For later enactment, see Article
62A.9A RCW.
Emergency—Effective date—1967 c 114: See note following RCW
62A.4-406.
Restoration of stolen property: RCW 10.79.050.
62A.2-501
62A.2-501 Insurable interest in goods; manner of
identification of goods. (1) The buyer obtains a special
property and an insurable interest in goods by identification
of existing goods as goods to which the contract refers even
though the goods so identified are non-conforming and he
has an option to return or reject them. Such identification can
be made at any time and in any manner explicitly agreed to by
the parties. In the absence of explicit agreement identification
occurs
(a) when the contract is made if it is for the sale of goods
already existing and identified;
(b) if the contract is for the sale of future goods other
than those described in paragraph (c), when goods are
shipped, marked or otherwise designated by the seller as
goods to which the contract refers;
(c) when the crops are planted or otherwise become
growing crops or the young are conceived if the contract is
for the sale of unborn young to be born within twelve months
after contracting or for the sale of crops to be harvested
within twelve months or the next normal harvest season after
contracting whichever is longer.
(2) The seller retains an insurable interest in goods so
long as title to or any security interest in the goods remains in
him and where the identification is by the seller alone he may
until default or insolvency or notification to the buyer that the
identification is final substitute other goods for those identified.
(3) Nothing in this section impairs any insurable interest
recognized under any other statute or rule of law. [1965 ex.s.
c 157 § 2-501. Cf. former RCW sections: (i) RCW
63.04.180; 1925 ex.s. c 142 § 17; RRS § 5836-17. (ii) RCW
63.04.200; 1925 ex.s. c 142 § 19; RRS § 5836-19.]
62A.2-502
62A.2-502 Buyer's right to goods on seller's insolvency. (1) Subject to subsections (2) and (3) of this section
[Title 62A RCW—page 17]
62A.2-503
Title 62A RCW: Uniform Commercial Code
and even though the goods have not been shipped a buyer
who has paid a part or all of the price of goods in which he
has a special property under the provisions of the immediately preceding section may on making and keeping good a
tender of any unpaid portion of their price recover them from
the seller if:
(a) In the case of goods bought for personal, family, or
household purposes, the seller repudiates or fails to deliver as
required by the contract; or
(b) In all cases, the seller becomes insolvent within ten
days after receipt of the first installment on their price.
(2) The buyer's right to recover the goods under subsection (1)(a) of this section vests upon acquisition of a special
property, even if the seller had not then repudiated or failed to
deliver.
(3) If the identification creating his special property has
been made by the buyer he acquires the right to recover the
goods only if they conform to the contract for sale. [2000 c
250 § 9A-806; 1965 ex.s. c 157 § 2-502. Cf. former RCW
sections: RCW 63.04.180 through 63.04.200; 1925 ex.s. c
142 §§ 17 through 19; RRS §§ 5836-17 through 5836-19.]
Effective date—2000 c 250: See RCW 62A.9A-701.
62A.2-503
62A.2-503 Manner of seller's tender of delivery. (1)
Tender of delivery requires that the seller put and hold conforming goods at the buyer's disposition and give the buyer
any notification reasonably necessary to enable him to take
delivery. The manner, time and place for tender are determined by the agreement and this Article, and in particular
(a) tender must be at a reasonable hour, and if it is of
goods they must be kept available for the period reasonably
necessary to enable the buyer to take possession; but
(b) unless otherwise agreed the buyer must furnish facilities reasonably suited to the receipt of the goods.
(2) Where the case is within the next section respecting
shipment tender requires that the seller comply with its provisions.
(3) Where the seller is required to deliver at a particular
destination tender requires that he comply with subsection (1)
and also in any appropriate case tender documents as
described in subsections (4) and (5) of this section.
(4) Where goods are in the possession of a bailee and are
to be delivered without being moved
(a) tender requires that the seller either tender a negotiable document of title covering such goods or procure
acknowledgment by the bailee of the buyer's right to possession of the goods; but
(b) tender to the buyer of a non-negotiable document of
title or of a written direction to the bailee to deliver is sufficient tender unless the buyer seasonably objects, and receipt
by the bailee of notification of the buyer's rights fixes those
rights as against the bailee and all third persons; but risk of
loss of the goods and of any failure by the bailee to honor the
non-negotiable document of title or to obey the direction
remains on the seller until the buyer has had a reasonable
time to present the document or direction, and a refusal by the
bailee to honor the document or to obey the direction defeats
the tender.
(5) Where the contract requires the seller to deliver documents
[Title 62A RCW—page 18]
(a) he must tender all such documents in correct form,
except as provided in this Article with respect to bills of lading in a set (subsection (2) of RCW 62A.2-323); and
(b) tender through customary banking channels is sufficient and dishonor of a draft accompanying the documents
constitutes non-acceptance or rejection. [1965 ex.s. c 157 §
2-503. Cf. former RCW sections: RCW 63.04.120,
63.04.200, 63.04.210, 63.04.440, 63.04.470, and 63.04.520;
1925 ex.s. c 142 §§ 11, 19, 20, 43, 46, and 51; RRS §§ 583611, 5836-19, 5836-20, 5836-43, 5836-46, and 5836-51.]
62A.2-504
62A.2-504 Shipment by seller. Where the seller is
required or authorized to send the goods to the buyer and the
contract does not require him to deliver them at a particular
destination, then unless otherwise agreed he must
(a) put the goods in the possession of such a carrier and
make such a contract for their transportation as may be reasonable having regard to the nature of the goods and other
circumstances of the case; and
(b) obtain and promptly deliver or tender in due form any
document necessary to enable the buyer to obtain possession
of the goods or otherwise required by the agreement or by
usage of trade; and
(c) promptly notify the buyer of the shipment. Failure to
notify the buyer under paragraph (c) or to make a proper contract under paragraph (a) is a ground for rejection only if
material delay or loss ensues. [1965 ex.s. c 157 § 2-504. Cf.
former RCW 63.04.470; 1925 ex.s. c 142 § 46; RRS § 583646.]
62A.2-505
62A.2-505 Seller's shipment under reservation. (1)
Where the seller has identified goods to the contract by or
before shipment:
(a) his procurement of a negotiable bill of lading to his
own order or otherwise reserves in him a security interest in
the goods. His procurement of the bill to the order of a financing agency or of the buyer indicates in addition only the
seller's expectation of transferring that interest to the person
named.
(b) a non-negotiable bill of lading to himself or his nominee reserves possession of the goods as security but except in
a case of conditional delivery (subsection (2) of RCW 62A.2507) a non-negotiable bill of lading naming the buyer as consignee reserves no security interest even though the seller
retains possession of the bill of lading.
(2) When shipment by the seller with reservation of a
security interest is in violation of the contract for sale it constitutes an improper contract for transportation within the
preceding section but impairs neither the rights given to the
buyer by shipment and identification of the goods to the contract nor the seller's powers as a holder of a negotiable document. [1965 ex.s. c 157 § 2-505. Cf. former RCW 63.04.210
(2), (3), (4); 1925 ex.s. c 142 § 20; RRS § 5836-20.]
62A.2-506
62A.2-506 Rights of financing agency. (1) A financing agency by paying or purchasing for value a draft which
relates to a shipment of goods acquires to the extent of the
payment or purchase and in addition to its own rights under
the draft and any document of title securing it any rights of
(2004 Ed.)
Sales
the shipper in the goods including the right to stop delivery
and the shipper's right to have the draft honored by the buyer.
(2) The right to reimbursement of a financing agency
which has in good faith honored or purchased the draft under
commitment to or authority from the buyer is not impaired by
subsequent discovery of defects with reference to any relevant document which was apparently regular on its face.
[1965 ex.s. c 157 § 2-506.]
62A.2-513
seller is a merchant; otherwise the risk passes to the buyer on
tender of delivery.
(4) The provisions of this section are subject to contrary
agreement of the parties and to the provisions of this Article
on sale on approval (RCW 62A.2-327) and on effect of
breach on risk of loss (RCW 62A.2-510). [1965 ex.s. c 157 §
2-509. Cf. former RCW sections: (i) RCW 63.04.200; 1925
ex.s. c 142 § 19; RRS § 5836-19. (ii) RCW 63.04.230; 1925
ex.s. c 142 § 22; RRS § 5836-22.]
62A.2-507
62A.2-507 Effect of seller's tender; delivery on condition. (1) Tender of delivery is a condition to the buyer's duty
to accept the goods and, unless otherwise agreed, to his duty
to pay for them. Tender entitles the seller to acceptance of the
goods and to payment according to the contract.
(2) Where payment is due and demanded on the delivery
to the buyer of goods or documents of title, his right as
against the seller to retain or dispose of them is conditional
upon his making the payment due. [1965 ex.s. c 157 § 2-507.
Cf. former RCW sections: (i) RCW 63.04.120; 1925 ex.s. c
142 § 11; RRS § 5836-11. (ii) RCW 63.04.420; 1925 ex.s. c
142 § 41; RRS § 5836-41. (iii) RCW 63.04.430; 1925 ex.s. c
142 § 42; RRS § 5836-42. (iv) RCW 63.04.700; 1925 ex.s. c
142 § 69; RRS § 5836-69.]
62A.2-510
62A.2-510 Effect of breach on risk of loss. (1) Where
a tender or delivery of goods so fails to conform to the contract as to give a right of rejection the risk of their loss
remains on the seller until cure or acceptance.
(2) Where the buyer rightfully revokes acceptance he
may to the extent of any deficiency in his effective insurance
coverage treat the risk of loss as having rested on the seller
from the beginning.
(3) Where the buyer as to conforming goods already
identified to the contract for sale repudiates or is otherwise in
breach before risk of their loss has passed to him, the seller
may to the extent of any deficiency in his effective insurance
coverage treat the risk of loss as resting on the buyer for a
commercially reasonable time. [1965 ex.s. c 157 § 2-510.]
62A.2-508
62A.2-508 Cure by seller of improper tender or
delivery; replacement. (1) Where any tender or delivery by
the seller is rejected because non-conforming and the time for
performance has not yet expired, the seller may seasonably
notify the buyer of his intention to cure and may then within
the contract time make a conforming delivery.
(2) Where the buyer rejects a non-conforming tender
which the seller had reasonable grounds to believe would be
acceptable with or without money allowance the seller may if
he seasonably notifies the buyer have a further reasonable
time to substitute a conforming tender. [1965 ex.s. c 157 § 2508.]
62A.2-509
62A.2-509 Risk of loss in the absence of breach. (1)
Where the contract requires or authorizes the seller to ship the
goods by carrier
(a) if it does not require him to deliver them at a particular destination, the risk of loss passes to the buyer when the
goods are duly delivered to the carrier even though the shipment is under reservation (RCW 62A.2-505); but
(b) if it does require him to deliver them at a particular
destination and the goods are there duly tendered while in the
possession of the carrier, the risk of loss passes to the buyer
when the goods are there duly so tendered as to enable the
buyer to take delivery.
(2) Where the goods are held by a bailee to be delivered
without being moved, the risk of loss passes to the buyer
(a) on his receipt of a negotiable document of title covering the goods; or
(b) on acknowledgment by the bailee of the buyer's right
to possession of the goods; or
(c) after his receipt of a non-negotiable document of title
or other written direction to deliver, as provided in subsection
(4)(b) of RCW 62A.2-503.
(3) In any case not within subsection (1) or (2), the risk
of loss passes to the buyer on his receipt of the goods if the
(2004 Ed.)
62A.2-511
62A.2-511 Tender of payment by buyer; payment by
check. (1) Unless otherwise agreed tender of payment is a
condition to the seller's duty to tender and complete any
delivery.
(2) Tender of payment is sufficient when made by any
means or in any manner current in the ordinary course of
business unless the seller demands payment in legal tender
and gives any extension of time reasonably necessary to procure it.
(3) Subject to the provisions of this Title on the effect of
an instrument on an obligation (RCW 62A.3-310), payment
by check is conditional and is defeated as between the parties
by dishonor of the check on due presentment. [1996 c 77 § 2;
1965 ex.s. c 157 § 2-511. Cf. former RCW 63.04.430; 1925
ex.s. c 142 § 42; RRS § 5836-42.]
62A.2-512
62A.2-512 Payment by buyer before inspection. (1)
Where the contract requires payment before inspection nonconformity of the goods does not excuse the buyer from so
making payment unless
(a) the non-conformity appears without inspection; or
(b) despite tender of the required documents the circumstances would justify injunction against honor under the provisions of this Title (RCW 62A.5-109(2)).
(2) Payment pursuant to subsection (1) does not constitute an acceptance of goods or impair the buyer's right to
inspect or any of his or her remedies. [1997 c 56 § 20; 1965
ex.s. c 157 § 2-512. Cf. former RCW sections: (i) RCW
63.04.480; 1925 ex.s. c 142 § 47; RRS § 5836-47. (ii) RCW
63.04.500; 1925 ex.s. c 142 § 49; RRS § 5836-49.]
Applicability—Savings—Transition provisions—1997 c 56: See
RCW 62A.5-1013 and 62A.5-1015.
62A.2-513
62A.2-513 Buyer's right to inspection of goods. (1)
Unless otherwise agreed and subject to subsection (3), where
[Title 62A RCW—page 19]
62A.2-514
Title 62A RCW: Uniform Commercial Code
goods are tendered or delivered or identified to the contract
for sale, the buyer has a right before payment or acceptance
to inspect them at any reasonable place and time and in any
reasonable manner. When the seller is required or authorized
to send the goods to the buyer, the inspection may be after
their arrival.
(2) Expenses of inspection must be borne by the buyer
but may be recovered from the seller if the goods do not conform and are rejected.
(3) Unless otherwise agreed and subject to the provisions
of this Article on C.I.F. contracts (subsection (3) of RCW
62A.2-321), the buyer is not entitled to inspect the goods
before payment of the price when the contract provides
(a) for delivery "C.O.D." or on other like terms; or
(b) for payment against documents of title, except where
such payment is due only after the goods are to become available for inspection.
(4) A place or method of inspection fixed by the parties
is presumed to be exclusive but unless otherwise expressly
agreed it does not postpone identification or shift the place
for delivery or for passing the risk of loss. If compliance
becomes impossible, inspection shall be as provided in this
section unless the place or method fixed was clearly intended
as an indispensable condition failure of which avoids the contract. [1965 ex.s. c 157 § 2-513. Cf. former RCW 63.04.480
(2), (3); 1925 ex.s. c 142 § 47; RRS § 5836-47.]
62A.2-514
62A.2-514 When documents deliverable on acceptance; when on payment. Unless otherwise agreed documents against which a draft is drawn are to be delivered to the
drawee on acceptance of the draft if it is payable more than
three days after presentment; otherwise, only on payment.
[1965 ex.s. c 157 § 2-514. Cf. former RCW 81.32.411; 1961
c 14 § 81.32.411; prior: 1915 c 159 § 41; RRS § 3687; formerly RCW 81.32.500.]
62A.2-515
62A.2-515 Preserving evidence of goods in dispute.
In furtherance of the adjustment of any claim or dispute
(a) either party on reasonable notification to the other
and for the purpose of ascertaining the facts and preserving
evidence has the right to inspect, test and sample the goods
including such of them as may be in the possession or control
of the other; and
(b) the parties may agree to a third party inspection or
survey to determine the conformity or condition of the goods
and may agree that the findings shall be binding upon them in
any subsequent litigation or adjustment. [1965 ex.s. c 157 §
2-515.]
62A.2-601
62A.2-601 Buyer's rights on improper delivery. Subject to the provisions of this Article on breach in installment
contracts (RCW 62A.2-612) and unless otherwise agreed
under the sections on contractual limitations of remedy
(RCW 62A.2-718 and RCW 62A.2-719), if the goods or the
tender of delivery fail in any respect to conform to the contract, the buyer may
(a) reject the whole; or
(b) accept the whole; or
(c) accept any commercial unit or units and reject the
rest. [1965 ex.s. c 157 § 2-601. Cf. former RCW sections: (i)
[Title 62A RCW—page 20]
RCW 63.04.120; 1925 ex.s. c 142 § 11; RRS § 5836-11. (ii)
RCW 63.04.480; 1925 ex.s. c 142 § 47; RRS § 5836-47. (iii)
RCW 63.04.700(1); 1925 ex.s. c 142 § 69; RRS § 5836-69.]
62A.2-602
62A.2-602 Manner and effect of rightful rejection.
(1) Rejection of goods must be within a reasonable time after
their delivery or tender. It is ineffective unless the buyer seasonably notifies the seller.
(2) Subject to the provisions of the two following sections on rejected goods (RCW 62A.2-603 and RCW 62A.2604),
(a) after rejection any exercise of ownership by the buyer
with respect to any commercial unit is wrongful as against the
seller; and
(b) if the buyer has before rejection taken physical possession of goods in which he does not have a security interest
under the provisions of this Article (subsection (3) of RCW
62A.2-711), he is under a duty after rejection to hold them
with reasonable care at the seller's disposition for a time sufficient to permit the seller to remove them; but
(c) the buyer has no further obligations with regard to
goods rightfully rejected.
(3) The seller's rights with respect to goods wrongfully
rejected are governed by the provisions of this Article on
seller's remedies in general (RCW 62A.2-703). [1965 ex.s. c
157 § 2-602. Cf. former RCW sections: (i) RCW 63.04.090;
1925 ex.s. c 142 § 8; RRS § 5836-8. (ii) RCW 63.04.510;
1925 ex.s. c 142 § 50; RRS § 5836-50.]
62A.2-603
62A.2-603 Merchant buyer's duties as to rightfully
rejected goods. (1) Subject to any security interest in the
buyer (subsection (3) of RCW 62A.2-711), when the seller
has no agent or place of business at the market of rejection a
merchant buyer is under a duty after rejection of goods in his
possession or control to follow any reasonable instructions
received from the seller with respect to the goods and in the
absence of such instructions to make reasonable efforts to sell
them for the seller's account if they are perishable or threaten
to decline in value speedily. Instructions are not reasonable if
on demand indemnity for expenses is not forthcoming.
(2) When the buyer sells goods under subsection (1), he
is entitled to reimbursement from the seller or out of the proceeds for reasonable expenses of caring for and selling them,
and if the expenses include no selling commission then to
such commission as is usual in the trade or if there is none to
a reasonable sum not exceeding ten per cent on the gross proceeds.
(3) In complying with this section the buyer is held only
to good faith and good faith conduct hereunder is neither
acceptance nor conversion nor the basis of an action for damages. [1965 ex.s. c 157 § 2-603.]
62A.2-604
62A.2-604 Buyer's options as to salvage of rightfully
rejected goods. Subject to the provisions of the immediately
preceding section on perishables if the seller gives no instructions within a reasonable time after notification of rejection
the buyer may store the rejected goods for the seller's account
or reship them to him or resell them for the seller's account
with reimbursement as provided in the preceding section.
(2004 Ed.)
Sales
Such action is not acceptance or conversion. [1965 ex.s. c
157 § 2-604.]
62A.2-605
62A.2-605 Waiver of buyer's objections by failure to
particularize. (1) The buyer's failure to state in connection
with rejection a particular defect which is ascertainable by
reasonable inspection precludes him from relying on the
unstated defect to justify rejection or to establish breach
(a) where the seller could have cured it if stated seasonably; or
(b) between merchants when the seller has after rejection
made a request in writing for a full and final written statement
of all defects on which the buyer proposes to rely.
(2) Payment against documents made without reservation of rights precludes recovery of the payment for defects
apparent on the face of the documents. [1965 ex.s. c 157 § 2605.]
62A.2-606
62A.2-606 What constitutes acceptance of goods. (1)
Acceptance of goods occurs when the buyer
(a) after a reasonable opportunity to inspect the goods
signifies to the seller that the goods are conforming or that he
will take or retain them in spite of their non-conformity; or
(b) fails to make an effective rejection (subsection (1) of
RCW 62A.2-602), but such acceptance does not occur until
the buyer has had a reasonable opportunity to inspect them;
or
(c) does any act inconsistent with the seller's ownership;
but if such act is wrongful as against the seller it is an acceptance only if ratified by him.
(2) Acceptance of a part of any commercial unit is acceptance of that entire unit. [1965 ex.s. c 157 § 2-606. Cf. former
RCW sections: (i) RCW 63.04.480(1); 1925 ex.s. c 142 § 47;
RRS § 5836-47. (ii) RCW 63.04.490; 1925 ex.s. c 142 § 48;
RRS § 5836-48.]
62A.2-607
62A.2-607 Effect of acceptance; notice of breach;
burden of establishing breach after acceptance; notice of
claim or litigation to person answerable over. (1) The
buyer must pay at the contract rate for any goods accepted.
(2) Acceptance of goods by the buyer precludes rejection
of the goods accepted and if made with knowledge of a nonconformity cannot be revoked because of it unless the acceptance was on the reasonable assumption that the non-conformity would be seasonably cured but acceptance does not of
itself impair any other remedy provided by this Article for
non-conformity.
(3) Where a tender has been accepted
(a) the buyer must within a reasonable time after he discovers or should have discovered any breach notify the seller
of breach or be barred from any remedy; and
(b) if the claim is one for infringement or the like (subsection (3) of RCW 62A.2-312) and the buyer is sued as a
result of such a breach he must so notify the seller within a
reasonable time after he receives notice of the litigation or be
barred from any remedy over for liability established by the
litigation.
(4) The burden is on the buyer to establish any breach
with respect to the goods accepted.
(2004 Ed.)
62A.2-609
(5) Where the buyer is sued for breach of a warranty or
other obligation for which his seller is answerable over
(a) he may give his seller written notice of the litigation.
If the notice states that the seller may come in and defend and
that if the seller does not do so he will be bound in any action
against him by his buyer by any determination of fact common to the two litigations, then unless the seller after seasonable receipt of the notice does come in and defend he is so
bound.
(b) if the claim is one for infringement or the like (subsection (3) of RCW 62A.2-312) the original seller may
demand in writing that his buyer turn over to him control of
the litigation including settlement or else be barred from any
remedy over and if he also agrees to bear all expense and to
satisfy any adverse judgment, then unless the buyer after seasonable receipt of the demand does turn over control the
buyer is so barred.
(6) The provisions of subsections (3), (4) and (5) apply to
any obligation of a buyer to hold the seller harmless against
infringement or the like (subsection (3) of RCW 62A.2-312).
[1965 ex.s. c 157 § 2-607. Subd. (1) cf. former RCW
63.04.420; 1925 ex.s. c 142 § 41; RRS § 5836-41. Subd. (2),
(3) cf. former RCW sections: (i) RCW 63.04.500; 1925 ex.s.
c 142 § 49; RRS § 5836-49. (ii) RCW 63.04.700; 1925 ex.s.
c 142 § 69; RRS § 5836-69.]
62A.2-608
62A.2-608 Revocation of acceptance in whole or in
part. (1) The buyer may revoke his acceptance of a lot or
commercial unit whose non-conformity substantially impairs
its value to him if he has accepted it
(a) on the reasonable assumption that its non-conformity
would be cured and it has not been seasonably cured; or
(b) without discovery of such non-conformity if his
acceptance was reasonably induced either by the difficulty of
discovery before acceptance or by the seller's assurances.
(2) Revocation of acceptance must occur within a reasonable time after the buyer discovers or should have discovered the ground for it and before any substantial change in
condition of the goods which is not caused by their own
defects. It is not effective until the buyer notifies the seller of
it.
(3) A buyer who so revokes has the same rights and
duties with regard to the goods involved as if he had rejected
them. [1965 ex.s. c 157 § 2-608. Cf. former RCW 63.04.700
(1)(d), (3), (4), (5); 1925 ex.s. c 142 § 69; RRS § 5836-69.]
62A.2-609
62A.2-609 Right to adequate assurance of performance. (1) A contract for sale imposes an obligation on each
party that the other's expectation of receiving due performance will not be impaired. When reasonable grounds for
insecurity arise with respect to the performance of either
party the other may in writing demand adequate assurance of
due performance and until he receives such assurance may if
commercially reasonable suspend any performance for which
he has not already received the agreed return.
(2) Between merchants the reasonableness of grounds
for insecurity and the adequacy of any assurance offered shall
be determined according to commercial standards.
[Title 62A RCW—page 21]
62A.2-610
Title 62A RCW: Uniform Commercial Code
(3) Acceptance of any improper delivery or payment
does not prejudice the aggrieved party's right to demand adequate assurance of future performance.
(4) After receipt of a justified demand failure to provide
within a reasonable time not exceeding thirty days such
assurance of due performance as is adequate under the circumstances of the particular case is a repudiation of the contract. [1965 ex.s. c 157 § 2-609. Cf. former RCW sections:
(i) RCW 63.04.540; 1925 ex.s. c 142 § 53; RRS § 5836-53.
(ii) RCW 63.04.550(1)(b); 1925 ex.s. c 142 § 54; RRS §
5836-54. (iii) RCW 63.04.560; 1925 ex.s. c 142 § 55; RRS §
5836-55. (iv) RCW 63.04.640(2); 1925 ex.s. c 142 § 63; RRS
§ 5836-63.]
62A.2-610
62A.2-610 Anticipatory repudiation. When either
party repudiates the contract with respect to a performance
not yet due the loss of which will substantially impair the
value of the contract to the other, the aggrieved party may
(a) for a commercially reasonable time await performance by the repudiating party; or
(b) resort to any remedy for breach (RCW 62A.2-703 or
RCW 62A.2-711), even though he has notified the repudiating party that he would await the latter's performance and has
urged retraction; and
(c) in either case suspend his own performance or proceed in accordance with the provisions of this Article on the
seller's right to identify goods to the contract notwithstanding
breach or to salvage unfinished goods (RCW 62A.2-704).
[1965 ex.s. c 157 § 2-610. Cf. former RCW section: (i) RCW
63.04.640(2); 1925 ex.s. c 142 § 63; RRS § 5836-63. (ii)
RCW 63.04.660; 1925 ex.s. c 142 § 65; RRS § 5836-65.]
62A.2-611
62A.2-611 Retraction of anticipatory repudiation.
(1) Until the repudiating party's next performance is due he
can retract his repudiation unless the aggrieved party has
since the repudiation cancelled or materially changed his
position or otherwise indicated that he considers the repudiation final.
(2) Retraction may be by any method which clearly indicates to the aggrieved party that the repudiating party intends
to perform, but must include any assurance justifiably
demanded under the provisions of this Article (RCW 62A.2609).
(3) Retraction reinstates the repudiating party's rights
under the contract with due excuse and allowance to the
aggrieved party for any delay occasioned by the repudiation.
[1965 ex.s. c 157 § 2-611.]
62A.2-612
62A.2-612 "Installment contract"; breach. (1) An
"installment contract" is one which requires or authorizes the
delivery of goods in separate lots to be separately accepted,
even though the contract contains a clause "each delivery is a
separate contract" or its equivalent.
(2) The buyer may reject any installment which is nonconforming if the non-conformity substantially impairs the
value of that installment and cannot be cured or if the nonconformity is a defect in the required documents; but if the
non-conformity does not fall within subsection (3) and the
seller gives adequate assurance of its cure the buyer must
accept that installment.
[Title 62A RCW—page 22]
(3) Whenever non-conformity or default with respect to
one or more installments substantially impairs the value of
the whole contract there is a breach of the whole. But the
aggrieved party reinstates the contract if he accepts a nonconforming installment without seasonably notifying of cancellation or if he brings an action with respect only to past
installments or demands performance as to future installments. [1965 ex.s. c 157 § 2-612. Cf. former RCW
63.04.460(2); 1925 ex.s. c 142 § 45; RRS § 5836-45.]
62A.2-613
62A.2-613 Casualty to identified goods. Where the
contract requires for its performance goods identified when
the contract is made, and the goods suffer casualty without
fault of either party before the risk of loss passes to the buyer,
or in a proper case under a "no arrival, no sale" term (RCW
62A.2-324) then
(a) if the loss is total the contract is avoided; and
(b) if the loss is partial or the goods have so deteriorated
as no longer to conform to the contract the buyer may nevertheless demand inspection and at his option either treat the
contract as avoided or accept the goods with due allowance
from the contract price for the deterioration or the deficiency
in quantity but without further right against the seller. [1965
ex.s. c 157 § 2-613. Cf. former RCW sections: (i) RCW
63.04.080; 1925 ex.s. c 142 § 7; RRS § 5836-7. (ii) RCW
63.04.090; 1925 ex.s. c 142 § 8; RRS § 5836-8.]
62A.2-614
62A.2-614 Substituted performance. (1) Where without fault of either party the agreed berthing, loading, or
unloading facilities fail or an agreed type of carrier becomes
unavailable or the agreed manner of delivery otherwise
becomes commercially impracticable but a commercially
reasonable substitute is available, such substitute performance must be tendered and accepted.
(2) If the agreed means or manner of payment fails
because of domestic or foreign governmental regulation, the
seller may withhold or stop delivery unless the buyer provides a means or manner of payment which is commercially
a substantial equivalent. If delivery has already been taken,
payment by the means or in the manner provided by the regulation discharges the buyer's obligation unless the regulation
is discriminatory, oppressive or predatory. [1965 ex.s. c 157
§ 2-614.]
62A.2-615
62A.2-615 Excuse by failure of presupposed conditions. Except so far as a seller may have assumed a greater
obligation and subject to the preceding section on substituted
performance:
(a) Delay in delivery or non-delivery in whole or in part
by a seller who complies with paragraphs (b) and (c) is not a
breach of his duty under a contract for sale if performance as
agreed has been made impracticable by the occurrence of a
contingency the non-occurrence of which was a basic
assumption on which the contract was made or by compliance in good faith with any applicable foreign or domestic
governmental regulation or order whether or not it later
proves to be invalid.
(b) Where the causes mentioned in paragraph (a) affect
only a part of the seller's capacity to perform, he must allocate
production and deliveries among his customers but may at his
(2004 Ed.)
Sales
option include regular customers not then under contract as
well as his own requirements for further manufacture. He
may so allocate in any manner which is fair and reasonable.
(c) The seller must notify the buyer seasonably that there
will be delay or non-delivery and, when allocation is required
under paragraph (b), of the estimated quota thus made available for the buyer. [1965 ex.s. c 157 § 2-615.]
62A.2-616
62A.2-616 Procedure on notice claiming excuse. (1)
Where the buyer receives notification of a material or indefinite delay or an allocation justified under the preceding section he may by written notification to the seller as to any
delivery concerned, and where the prospective deficiency
substantially impairs the value of the whole contract under
the provisions of this Article relating to breach of installment
contracts (RCW 62A.2-612), then also as to the whole,
(a) terminate and thereby discharge any unexecuted portion of the contract; or
(b) modify the contract by agreeing to take his available
quota in substitution.
(2) If after receipt of such notification from the seller the
buyer fails so to modify the contract within a reasonable time
not exceeding thirty days the contract lapses with respect to
any deliveries affected. [1965 ex.s. c 157 § 2-616.]
62A.2-701
62A.2-701 Remedies for breach of collateral contracts not impaired. Remedies for breach of any obligation
or promise collateral or ancillary to a contract for sale are not
impaired by the provisions of this Article. [1965 ex.s. c 157
§ 2-701.]
62A.2-702
62A.2-702 Seller's remedies on discovery of buyer's
insolvency. (1) Where the seller discovers the buyer to be
insolvent he may refuse delivery except for cash including
payment for all goods theretofore delivered under the contract, and stop delivery under this Article (RCW 62A.2-705).
(2) Where the seller discovers that the buyer has received
goods on credit while insolvent he may reclaim the goods
upon demand made within ten days after the receipt, but if
misrepresentation of solvency has been made to the particular
seller in writing within three months before delivery the ten
day limitation does not apply. Except as provided in this subsection the seller may not base a right to reclaim goods on the
buyer's fraudulent or innocent misrepresentation of solvency
or of intent to pay.
(3) The seller's right to reclaim under subsection (2) is
subject to the rights of a buyer in ordinary course or other
good faith purchaser under this Article (RCW 62A.2-403).
Successful reclamation of goods excludes all other remedies
with respect to them. [1981 c 41 § 4; 1965 ex.s. c 157 § 2702. Subd. (1) cf. former RCW sections: (i) RCW
63.04.540(1)(b); 1925 ex.s. c 142 § 53; RRS § 5836-53. (ii)
RCW 63.04.550(1)(c); 1925 ex.s. c 142 § 54; RRS § 583654. (iii) RCW 63.04.560; 1925 ex.s. c 142 § 55; RRS § 583655. (iv) RCW 63.04.580; 1925 ex.s. c 142 § 57; RRS § 583657. Subd. (3) cf. former RCW 63.04.755(3); 1925 ex.s. c 142
§ 76; RRS § 5836-76; formerly RCW 63.04.010.]
Effective date—1981 c 41: See RCW 62A.11-101.
(2004 Ed.)
62A.2-705
62A.2-703
62A.2-703 Seller's remedies in general. Where the
buyer wrongfully rejects or revokes acceptance of goods or
fails to make a payment due on or before delivery or repudiates with respect to a part or the whole, then with respect to
any goods directly affected and, if the breach is of the whole
contract (RCW 62A.2-612), then also with respect to the
whole undelivered balance, the aggrieved seller may
(a) withhold delivery of such goods;
(b) stop delivery by any bailee as hereafter provided
(RCW 62A.2-705);
(c) proceed under the next section respecting goods still
unidentified to the contract;
(d) resell and recover damages as hereafter provided
(RCW 62A.2-706);
(e) recover damages for non-acceptance (RCW 62A.2708) or in a proper case the price (RCW 62A.2-709);
(f) cancel. [1965 ex.s. c 157 § 2-703. Cf. former RCW
sections: (i) RCW 63.04.540; 1925 ex.s. c 142 § 53; RRS §
5836-53. (ii) RCW 63.04.620(1); 1925 ex.s. c 142 § 61; RRS
§ 5836-61.]
62A.2-704
62A.2-704 Seller's right to identify goods to the contract notwithstanding breach or to salvage unfinished
goods. (1) An aggrieved seller under the preceding section
may
(a) identify to the contract conforming goods not already
identified if at the time he learned of the breach they are in his
possession or control;
(b) treat as the subject of resale goods which have
demonstrably been intended for the particular contract even
though those goods are unfinished.
(2) Where the goods are unfinished an aggrieved seller
may in the exercise of reasonable commercial judgment for
the purposes of avoiding loss and of effective realization
either complete the manufacture and wholly identify the
goods to the contract or cease manufacture and resell for
scrap or salvage value or proceed in any other reasonable
manner. [1965 ex.s. c 157 § 2-704. Cf. former RCW sections: (i) RCW 63.04.640(3); 1925 ex.s. c 142 § 63; RRS §
5836-63. (ii) RCW 63.04.650(4); 1925 ex.s. c 142 § 64; RRS
§ 5836-64.]
62A.2-705
62A.2-705 Seller's stoppage of delivery in transit or
otherwise. (1) The seller may stop delivery of goods in the
possession of a carrier or other bailee when he discovers the
buyer to be insolvent (RCW 62A.2-702) and may stop delivery of carload, truckload, planeload or larger shipments of
express or freight when the buyer repudiates or fails to make
a payment due before delivery or if for any other reason the
seller has a right to withhold or reclaim the goods.
(2) As against such buyer the seller may stop delivery
until
(a) receipt of the goods by the buyer; or
(b) acknowledgment to the buyer by any bailee of the
goods except a carrier that the bailee holds the goods for the
buyer; or
(c) such acknowledgment to the buyer by a carrier by
reshipment or as warehouseman; or
(d) negotiation to the buyer of any negotiable document
of title covering the goods.
[Title 62A RCW—page 23]
62A.2-706
Title 62A RCW: Uniform Commercial Code
(3)(a) To stop delivery the seller must so notify as to
enable the bailee by reasonable diligence to prevent delivery
of the goods.
(b) After such notification the bailee must hold and
deliver the goods according to the directions of the seller but
the seller is liable to the bailee for any ensuing charges or
damages.
(c) If a negotiable document of title has been issued for
goods the bailee is not obliged to obey a notification to stop
until surrender of the document.
(d) A carrier who has issued a non-negotiable bill of lading is not obliged to obey a notification to stop received from
a person other than the consignor. [1965 ex.s. c 157 § 2-705.
Cf. former RCW sections: (i) RCW 22.04.100; 1913 c 99 §
9; RRS § 3595; prior: 1891 c 134 § 7. (ii) RCW 22.04.120;
1913 c 99 § 11; RRS § 3597; prior: 1886 p 121 § 7. (iii) RCW
22.04.500; 1913 c 99 § 49; RRS § 3635. (iv) RCW 63.04.580
through 63.04.600; 1925 ex.s. c 142 §§ 57 through 59; RRS
§§ 5836-57 through 5836-59. (v) RCW 81.32.121,
81.32.141, and 81.32.421; 1961 c 14 §§ 81.32.121,
81.32.141, and 81.32.421; prior: 1915 c 159 §§ 12, 14, and
42; RRS §§ 3658, 3660, and 3688; formerly RCW 81.32.130,
81.32.160 and 81.32.510.]
62A.2-706 Seller's resale including contract for
resale. (1) Under the conditions stated in RCW 62A.2-703
on seller's remedies, the seller may resell the goods concerned or the undelivered balance thereof. Where the resale is
made in good faith and in a commercially reasonable manner
the seller may recover the difference between the resale price
and the contract price together with any incidental damages
allowed under the provisions of this Article (RCW 62A.2710), but less expenses saved in consequence of the buyer's
breach.
(2) Except as otherwise provided in subsection (3) or
unless otherwise agreed resale may be at public or private
sale including sale by way of one or more contracts to sell or
of identification to an existing contract of the seller. Sale may
be as a unit or in parcels and at any time and place and on any
terms but every aspect of the sale including the method, manner, time, place and terms must be commercially reasonable.
The resale must be reasonably identified as referring to the
broken contract, but it is not necessary that the goods be in
existence or that any or all of them have been identified to the
contract before the breach.
(3) Where the resale is at private sale the seller must give
the buyer reasonable notification of his intention to resell.
(4) Where the resale is at public sale
(a) only identified goods can be sold except where there
is a recognized market for a public sale of futures in goods of
the kind; and
(b) it must be made at a usual place or market for public
sale if one is reasonably available and except in the case of
goods which are perishable or threaten to decline in value
speedily the seller must give the buyer reasonable notice of
the time and place of the resale; and
(c) if the goods are not to be within the view of those
attending the sale the notification of sale must state the place
where the goods are located and provide for their reasonable
inspection by prospective bidders; and
(d) the seller may buy.
62A.2-706
[Title 62A RCW—page 24]
(5) A purchaser who buys in good faith at a resale takes
the goods free of any rights of the original buyer even though
the seller fails to comply with one or more of the requirements of this section.
(6) The seller is not accountable to the buyer for any
profit made on any resale. A person in the position of a seller
(RCW 62A.2-707) or a buyer who has rightfully rejected or
justifiably revoked acceptance must account for any excess
over the amount of his security interest, as hereinafter defined
(subsection (3) of RCW 62A.2-711). [1967 c 114 § 13; 1965
ex.s. c 157 § 2-706. Cf. former RCW 63.04.610; 1925 ex.s. c
142 § 60; RRS § 5836-60.]
Emergency—Effective date—1967 c 114: See note following RCW
62A.4-406.
62A.2-707
62A.2-707 "Person in the position of a seller". (1) A
"person in the position of a seller" includes as against a principal an agent who has paid or become responsible for the
price of goods on behalf of his principal or anyone who otherwise holds a security interest or other right in goods similar
to that of a seller.
(2) A person in the position of a seller may as provided
in this Article withhold or stop delivery (RCW 62A.2-705)
and resell (RCW 62A.2-706) and recover incidental damages
(RCW 62A.2-710). [1965 ex.s. c 157 § 2-707. Cf. former
RCW 63.04.530(2); 1925 ex.s. c 142 § 52; RRS § 5836-52.]
62A.2-708
62A.2-708 Seller's damages for non-acceptance or
repudiation. (1) Subject to subsection (2) and to the provisions of this Article with respect to proof of market price
(RCW 62A.2-723), the measure of damages for non-acceptance or repudiation by the buyer is the difference between
the market price at the time and place for tender and the
unpaid contract price together with any incidental damages
provided in this Article (RCW 62A.2-710), but less expenses
saved in consequence of the buyer's breach.
(2) If the measure of damages provided in subsection (1)
is inadequate to put the seller in as good a position as performance would have done then the measure of damages is the
profit (including reasonable overhead) which the seller would
have made from full performance by the buyer, together with
any incidental damages provided in this Article (RCW
62A.2-710), due allowance for costs reasonably incurred and
due credit for payments or proceeds of resale. [1965 ex.s. c
157 § 2-708. Cf. former RCW 63.04.650; 1925 ex.s. c 142 §
64; RRS § 5836-64.]
62A.2-709
62A.2-709 Action for the price. (1) When the buyer
fails to pay the price as it becomes due the seller may recover,
together with any incidental damages under the next section,
the price
(a) of goods accepted or of conforming goods lost or
damaged within a commercially reasonable time after risk of
their loss has passed to the buyer; and
(b) of goods identified to the contract if the seller is
unable after reasonable effort to resell them at a reasonable
price or the circumstances reasonably indicate that such
effort will be unavailing.
(2) Where the seller sues for the price he must hold for
the buyer any goods which have been identified to the con(2004 Ed.)
Sales
tract and are still in his control except that if resale becomes
possible he may resell them at any time prior to the collection
of the judgment. The net proceeds of any such resale must be
credited to the buyer and payment of the judgment entitles
him to any goods not resold.
(3) After the buyer has wrongfully rejected or revoked
acceptance of the goods or has failed to make a payment due
or has repudiated (RCW 62A.2-610), a seller who is held not
entitled to the price under this section shall nevertheless be
awarded damages for non-acceptance under the preceding
section. [1965 ex.s. c 157 § 2-709. Cf. former RCW
63.04.640; 1925 ex.s. c 142 § 63; RRS § 5836-63.]
62A.2-710
62A.2-710 Seller's incidental damages. Incidental
damages to an aggrieved seller include any commercially
reasonable charges, expenses or commissions incurred in
stopping delivery, in the transportation, care and custody of
goods after the buyer's breach, in connection with return or
resale of the goods or otherwise resulting from the breach.
[1965 ex.s. c 157 § 2-710. Cf. former RCW sections: (i)
RCW 63.04.650; 1925 ex.s. c 142 § 64; RRS § 5836-64. (ii)
RCW 63.04.710; 1925 ex.s. c 142 § 70; RRS § 5836-70.]
62A.2-711
62A.2-711 Buyer's remedies in general; buyer's security interest in rejected goods. (1) Where the seller fails to
make delivery or repudiates or the buyer rightfully rejects or
justifiably revokes acceptance then with respect to any goods
involved, and with respect to the whole if the breach goes to
the whole contract (RCW 62A.2-612), the buyer may cancel
and whether or not he has done so may in addition to recovering so much of the price as has been paid
(a) "cover" and have damages under the next section as
to all the goods affected whether or not they have been identified to the contract; or
(b) recover damages for non-delivery as provided in this
Article (RCW 62A.2-713).
(2) Where the seller fails to deliver or repudiates the
buyer may also
(a) if the goods have been identified recover them as provided in this Article (RCW 62A.2-502); or
(b) in a proper case obtain specific performance or
replevy the goods as provided in this Article (RCW 62A.2716).
(3) On rightful rejection or justifiable revocation of
acceptance a buyer has a security interest in goods in his possession or control for any payments made on their price and
any expenses reasonably incurred in their inspection, receipt,
transportation, care and custody and may hold such goods
and resell them in like manner as an aggrieved seller (RCW
62A.2-706). [1965 ex.s. c 157 § 2-711. Subd. (3) cf. former
RCW 63.04.700(5); 1925 ex.s. c 142 § 69; RRS § 5836-69.]
62A.2-712
62A.2-712 "Cover"; buyer's procurement of substitute goods. (1) After a breach within the preceding section
the buyer may "cover" by making in good faith and without
unreasonable delay any reasonable purchase of or contract to
purchase goods in substitution for those due from the seller.
(2) The buyer may recover from the seller as damages
the difference between the cost of cover and the contract
price together with any incidental or consequential damages
(2004 Ed.)
62A.2-716
as hereinafter defined (RCW 62A.2-715), but less expenses
saved in consequence of the seller's breach.
(3) Failure of the buyer to effect cover within this section
does not bar him from any other remedy. [1965 ex.s. c 157 §
2-712.]
62A.2-713
62A.2-713 Buyer's damages for non-delivery or
repudiation. (1) Subject to the provisions of this Article
with respect to proof of market price (RCW 62A.2-723), the
measure of damages for nondelivery or repudiation by the
seller is the difference between the market price at the time
when the buyer learned of the breach and the contract price
together with any incidental and consequential damages provided in this Article (RCW 62A.2-715), but less expenses
saved in consequence of the seller's breach.
(2) Market price is to be determined as of the place for
tender or, in cases of rejection after arrival or revocation of
acceptance, as of the place of arrival. [1965 ex.s. c 157 § 2713. Cf. former RCW 63.04.680(3); 1925 ex.s. c 142 § 67;
RRS § 5836-67.]
62A.2-714
62A.2-714 Buyer's damages for breach in regard to
accepted goods. (1) Where the buyer has accepted goods
and given notification (subsection (3) of RCW 62A.2-607) he
may recover as damages for any non-conformity of tender the
loss resulting in the ordinary course of events from the seller's
breach as determined in any manner which is reasonable.
(2) The measure of damages for breach of warranty is the
difference at the time and place of acceptance between the
value of the goods accepted and the value they would have
had if they had been as warranted, unless special circumstances show proximate damages of a different amount.
(3) In a proper case any incidental and consequential
damages under the next section may also be recovered.
[1965 ex.s. c 157 § 2-714. Cf. former RCW 63.04.700 (6),
(7); 1925 ex.s. c 142 § 69; RRS § 5836-69.]
62A.2-715
62A.2-715 Buyer's incidental and consequential
damages. (1) Incidental damages resulting from the seller's
breach include expenses reasonably incurred in inspection,
receipt, transportation and care and custody of goods rightfully rejected, any commercially reasonable charges,
expenses or commissions in connection with effecting cover
and any other reasonable expense incident to the delay or
other breach.
(2) Consequential damages resulting from the seller's
breach include
(a) any loss resulting from general or particular requirements and needs of which the seller at the time of contracting
had reason to know and which could not reasonably be prevented by cover or otherwise; and
(b) injury to person or property proximately resulting
from any breach of warranty. [1965 ex.s. c 157 § 2-715.
Subd. (2) cf. former RCW sections: (i) RCW 63.04.700(7);
1925 ex.s. c 142 § 69; RRS § 5836-69. (ii) RCW 63.04.710;
1925 ex.s. c 142 § 70; RRS § 5836-70.]
62A.2-716
62A.2-716 Buyer's right to specific performance or
replevin. (1) Specific performance may be decreed where
the goods are unique or in other proper circumstances.
[Title 62A RCW—page 25]
62A.2-717
Title 62A RCW: Uniform Commercial Code
(2) The decree for specific performance may include
such terms and conditions as to payment of the price, damages, or other relief as the court may deem just.
(3) The buyer has a right of replevin for goods identified
to the contract if after reasonable effort he is unable to effect
cover for such goods or the circumstances reasonably indicate that such effort will be unavailing or if the goods have
been shipped under reservation and satisfaction of the security interest in them has been made or tendered. In the case of
goods bought for personal, family, or household purposes,
the buyer's right of replevin vests upon acquisition of a special property, even if the seller had not then repudiated or
failed to deliver. [2000 c 250 § 9A-807; 1965 ex.s. c 157 § 2716. Cf. former RCW 63.04.690; 1925 ex.s. c 142 § 68; RRS
§ 5836-68.]
Effective date—2000 c 250: See RCW 62A.9A-701.
Replevin: Chapter 7.64 RCW.
62A.2-717
62A.2-717 Deduction of damages from the price. The
buyer on notifying the seller of his intention to do so may
deduct all or any part of the damages resulting from any
breach of the contract from any part of the price still due
under the same contract. [1965 ex.s. c 157 § 2-717. Cf.
former RCW 63.04.700(1)(a); 1925 ex.s. c 142 § 69; RRS §
5836-69.]
62A.2-718
62A.2-718 Liquidation or limitation of damages;
deposits. (1) Damages for breach by either party may be liquidated in the agreement but only at an amount which is reasonable in the light of the anticipated or actual harm caused
by the breach, the difficulties of proof of loss, and the inconvenience or nonfeasibility of otherwise obtaining an adequate
remedy. A term fixing unreasonably large liquidated damages is void as a penalty.
(2) Where the seller justifiably withholds delivery of
goods because of the buyer's breach, the buyer is entitled to
restitution of any amount by which the sum of his payments
exceeds
(a) the amount to which the seller is entitled by virtue of
terms liquidating the seller's damages in accordance with
subsection (1), or
(b) in the absence of such terms, twenty per cent of the
value of the total performance for which the buyer is obligated under the contract or five hundred dollars, whichever is
smaller.
(3) The buyer's right to restitution under subsection (2) is
subject to offset to the extent that the seller establishes
(a) a right to recover damages under the provisions of
this Article other than subsection (1), and
(b) the amount or value of any benefits received by the
buyer directly or indirectly by reason of the contract.
(4) Where a seller has received payment in goods their
reasonable value or the proceeds of their resale shall be
treated as payments for the purposes of subsection (2); but if
the seller has notice of the buyer's breach before reselling
goods received in part performance, his resale is subject to
the conditions laid down in this Article on resale by an
aggrieved seller (RCW 62A.2-706). [1965 ex.s. c 157 § 2718.]
[Title 62A RCW—page 26]
62A.2-719
62A.2-719 Contractual modification or limitation of
remedy. (1) Subject to the provisions of subsections (2) and
(3) of this section and of the preceding section on liquidation
and limitation of damages,
(a) the agreement may provide for remedies in addition
to or in substitution for those provided in this Article and may
limit or alter the measure of damages recoverable under this
Article, as by limiting the buyer's remedies to return of the
goods and repayment of the price or to repair and replacement of non-conforming goods or parts; and
(b) resort to a remedy as provided is optional unless the
remedy is expressly agreed to be exclusive, in which case it is
the sole remedy.
(2) Where circumstances cause an exclusive or limited
remedy to fail of its essential purpose, remedy may be had as
provided in this Title.
(3) Limitation of consequential damages for injury to the
person in the case of goods purchased primarily for personal,
family or household use or of any services related thereto is
invalid unless it is proved that the limitation is not unconscionable. Limitation of remedy to repair or replacement of
defective parts or non-conforming goods is invalid in sales of
goods primarily for personal, family or household use unless
the manufacturer or seller maintains or provides within this
state facilities adequate to provide reasonable and expeditious performance of repair or replacement obligations.
Limitation of other consequential damages is valid
unless it is established that the limitation is unconscionable.
[1974 ex.s. c 180 § 2; 1974 ex.s. c 78 § 2; 1965 ex.s. c 157 §
2-719. Subd. (1)(a) cf. former RCW 63.04.720; 1925 ex.s. c
142 § 71; RRS § 5836-71.]
Lease or rental of personal property—Disclaimer of warranty of merchantability or fitness: RCW 63.18.010.
62A.2-720
62A.2-720 Effect of "cancellation" or "rescission" on
claims for antecedent breach. Unless the contrary intention
clearly appears, expressions of "cancellation" or "rescission"
of the contract or the like shall not be construed as a renunciation or discharge of any claim in damages for an antecedent
breach. [1965 ex.s. c 157 § 2-720.]
62A.2-721
62A.2-721 Remedies for fraud. Remedies for material
misrepresentation or fraud include all remedies available
under this Article for non-fraudulent breach. Neither rescission or a claim for rescission of the contract for sale nor rejection or return of the goods shall bar or be deemed inconsistent
with a claim for damages or other remedy. [1965 ex.s. c 157
§ 2-721.]
62A.2-722
62A.2-722 Who can sue third parties for injury to
goods. Where a third party so deals with goods which have
been identified to a contract for sale as to cause actionable
injury to a party to that contract
(a) a right of action against the third party is in either
party to the contract for sale who has title to or a security
interest or a special property or an insurable interest in the
goods; and if the goods have been destroyed or converted a
right of action is also in the party who either bore the risk of
loss under the contract for sale or has since the injury
assumed that risk as against the other;
(2004 Ed.)
Leases
(b) if at the time of the injury the party plaintiff did not
bear the risk of loss as against the other party to the contract
for sale and there is no arrangement between them for disposition of the recovery, his suit or settlement is, subject to his
own interest, as a fiduciary for the other party to the contract;
(c) either party may with the consent of the other sue for
the benefit of whom it may concern. [1965 ex.s. c 157 § 2722.]
62A.2-723
62A.2-723 Proof of market price: Time and place.
(1) If an action based on anticipatory repudiation comes to
trial before the time for performance with respect to some or
all of the goods, any damages based on market price (RCW
62A.2-708 or RCW 62A.2-713) shall be determined according to the price of such goods prevailing at the time when the
aggrieved party learned of the repudiation.
(2) If evidence of a price prevailing at the times or places
described in this Article is not readily available the price prevailing within any reasonable time before or after the time
described or at any other place which in commercial judgment or under usage of trade would serve as a reasonable substitute for the one described may be used, making any proper
allowance for the cost of transporting the goods to or from
such other place.
(3) Evidence of a relevant price prevailing at a time or
place other than the one described in this Article offered by
one party is not admissible unless and until he has given the
other party such notice as the court finds sufficient to prevent
unfair surprise. [1965 ex.s. c 157 § 2-723.]
62A.2-724
62A.2-724 Admissibility of market quotations.
Whenever the prevailing price or value of any goods regularly bought and sold in any established commodity market is
in issue, reports in official publications or trade journals or in
newspapers or periodicals of general circulation published as
the reports of such market shall be admissible in evidence.
The circumstances of the preparation of such a report may be
shown to affect its weight but not its admissibility. [1965
ex.s. c 157 § 2-724.]
Article 2A
(4) This section does not alter the law on tolling of the
statute of limitations nor does it apply to causes of action
which have accrued before this Title becomes effective.
[1965 ex.s. c 157 § 2-725.]
Limitation of actions—Tolling of statute: RCW 4.16.170 through 4.16.240.
Article 2A
LEASES
Article 2A
Sections
PART 1
GENERAL PROVISIONS
62A.2A-101
62A.2A-102
62A.2A-103
62A.2A-104
62A.2A-105
Short title.
Scope.
Definitions and index of definitions.
Leases subject to other law.
Territorial application of article to goods covered by certificate
of title.
62A.2A-106 Limitation on power of parties to consumer lease to choose
applicable law and judicial forum.
62A.2A-107 Waiver or renunciation of claim or right after default.
62A.2A-108 Unconscionability.
PART 2
FORMATION AND CONSTRUCTION OF LEASE CONTRACT
62A.2A-201
62A.2A-202
62A.2A-203
62A.2A-204
62A.2A-205
62A.2A-206
62A.2A-207
62A.2A-208
62A.2A-209
62A.2A-210
62A.2A-211
62A.2A-212
62A.2A-213
62A.2A-214
62A.2A-215
62A.2A-216
62A.2A-217
62A.2A-218
62A.2A-219
62A.2A-220
62A.2A-221
PART 3
EFFECT OF LEASE CONTRACT
62A.2-725
62A.2-725 Statute of limitations in contracts for sale.
(1) An action for breach of any contract for sale must be commenced within four years after the cause of action has
accrued. By the original agreement the parties may reduce the
period of limitation to not less than one year but may not
extend it.
(2) A cause of action accrues when the breach occurs,
regardless of the aggrieved party's lack of knowledge of the
breach. A breach of warranty occurs when tender of delivery
is made, except that where a warranty explicitly extends to
future performance of the goods and discovery of the breach
must await the time of such performance the cause of action
accrues when the breach is or should have been discovered.
(3) Where an action commenced within the time limited
by subsection (1) is so terminated as to leave available a remedy by another action for the same breach such other action
may be commenced after the expiration of the time limited
and within six months after the termination of the first action
unless the termination resulted from voluntary discontinuance or from dismissal for failure or neglect to prosecute.
(2004 Ed.)
Statute of frauds.
Final written expression: Parol or extrinsic evidence.
Seals inoperative.
Formation in general.
Firm offers.
Offer and acceptance in formation of lease contract.
Course of performance or practical construction.
Modification, rescission, and waiver.
Lessee under finance lease as beneficiary of supply contract.
Express warranties.
Warranties against interference and against infringement; lessee's obligation against infringement.
Implied warranty of merchantability.
Implied warranty of fitness for particular purpose.
Exclusion or modification of warranties.
Cumulation and conflict of warranties express or implied.
Third party beneficiaries of express and implied warranties.
Identification.
Insurance and proceeds.
Risk of loss.
Effect of default on risk of loss.
Casualty to identified goods.
62A.2A-301 Enforceability of lease contract.
62A.2A-302 Title to and possession of goods.
62A.2A-303 Alienability of party's interest under lease contract or of lessor's residual interest in goods; delegation of performance;
transfer of rights.
62A.2A-304 Subsequent lease of goods by lessor.
62A.2A-305 Sale or sublease of goods by lessee.
62A.2A-306 Priority of certain liens arising by operation of law.
62A.2A-307 Priority of liens arising by attachment or levy on, security
interests in, and other claims to goods.
62A.2A-308 Special rights of creditors.
62A.2A-309 Lessor's and lessee's rights when goods become fixtures.
62A.2A-310 Lessor's and lessee's rights when goods become accessions.
62A.2A-311 Priority subject to subordination.
PART 4
PERFORMANCE OF LEASE CONTRACT:
REPUDIATED, SUBSTITUTED, AND EXCUSED
62A.2A-401
62A.2A-402
62A.2A-403
62A.2A-404
62A.2A-405
62A.2A-406
62A.2A-407
Insecurity: Adequate assurance of performance.
Anticipatory repudiation.
Retraction of anticipatory repudiation.
Substituted performance.
Excused performance.
Procedure on excused performance.
Irrevocable promises: Finance leases.
[Title 62A RCW—page 27]
62A.2A-101
Title 62A RCW: Uniform Commercial Code
PART 5
A. DEFAULT IN GENERAL
62A.2A-501
62A.2A-502
62A.2A-503
62A.2A-504
62A.2A-505
Default: Procedure.
Notice after default.
Modification or impairment of rights and remedies.
Liquidation of damages.
Cancellation and termination and effect of cancellation, termination, rescission, or fraud on rights and remedies.
62A.2A-506 Statute of limitations.
62A.2A-507 Proof of market rent: Time and place.
B. DEFAULT BY LESSOR
62A.2A-508
62A.2A-509
62A.2A-510
62A.2A-511
62A.2A-512
62A.2A-513
62A.2A-514
62A.2A-515
62A.2A-516
62A.2A-517
62A.2A-518
62A.2A-519
62A.2A-520
62A.2A-521
62A.2A-522
Lessee's remedies.
Lessee's rights on improper delivery; rightful rejection.
Installment lease contracts: Rejection and default.
Merchant lessee's duties as to rightfully rejected goods.
Lessee's duties as to rightfully rejected goods.
Cure by lessor of improper tender or delivery; replacement.
Waiver of lessee's objections.
Acceptance of goods.
Effect of acceptance of goods; notice of default; burden of
establishing default after acceptance; notice of claim or litigation to person answerable over.
Revocation of acceptance of goods.
Cover; substitute goods.
Lessee's damages for nondelivery, repudiation, default, and
breach of warranty in regard to accepted goods.
Lessee's incidental and consequential damages.
Lessee's right to specific performance or replevin.
Lessee's right to goods on lessor's insolvency.
C. DEFAULT BY LESSEE
62A.2A-523
62A.2A-524
62A.2A-525
62A.2A-526
62A.2A-527
62A.2A-528
62A.2A-529
62A.2A-530
62A.2A-531
62A.2A-532
Lessor's remedies.
Lessor's right to identify goods to lease contract.
Lessor's right to possession of goods.
Lessor's stoppage of delivery in transit or otherwise.
Lessor's rights to dispose of goods.
Lessor's damages for nonacceptance, failure to pay, repudiation, or other default.
Lessor's action for the rent.
Lessor's incidental damages.
Standing to sue third parties for injury to goods.
Lessor's rights to residual interest.
62A.2A-101 Short title. This Article shall be known
and may be cited as the Uniform Commercial Code—Leases.
[1993 c 230 § 2A-101.]
62A.2A-101
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-102 Scope. This Article applies to any transaction, regardless of form, that creates a lease. [1993 c 230 §
2A-102.]
62A.2A-102
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-103 Definitions and index of definitions. (1)
In this Article unless the context otherwise requires:
(a) "Buyer in ordinary course of business" means a person who in good faith and without knowledge that the sale to
him or her is in violation of the ownership rights or security
interest or leasehold interest of a third party in the goods buys
in ordinary course from a person in the business of selling
goods of that kind but does not include a pawnbroker. "Buying" may be for cash, or by exchange of other property, or on
secured or unsecured credit, and includes receiving goods or
documents of title under a preexisting contract for sale but
does not include a transfer in bulk or as security for or in total
or partial satisfaction of a money debt.
(b) "Cancellation" occurs when either party puts an end
to the lease contract for default by the other party.
(c) "Commercial unit" means such a unit of goods as by
commercial usage is a single whole for purposes of lease and
62A.2A-103
[Title 62A RCW—page 28]
division of which materially impairs its character or value on
the market or in use. A commercial unit may be a single article, as a machine, or a set of articles, as a suite of furniture or
a line of machinery, or a quantity, as a gross or carload, or any
other unit treated in use or in the relevant market as a single
whole.
(d) "Conforming" goods or performance under a lease
contract means goods or performance that are in accordance
with the obligations under the lease contract.
(e) "Consumer lease" means a lease that a lessor regularly engaged in the business of leasing or selling makes to a
lessee who is an individual who takes under the lease primarily for a personal, family, or household purpose, if the total
payments to be made under the lease contract, excluding payments for options to renew or buy, do not exceed twenty-five
thousand dollars.
(f) "Fault" means wrongful act, omission, breach, or
default.
(g) "Finance lease" means a lease with respect to which:
(i) The lessor does not select, manufacture, or supply the
goods;
(ii) The lessor acquires the goods or the right to possession and use of the goods in connection with the lease; and
(iii) Only in the case of a consumer lease, either:
(A) The lessee receives a copy of the contract by which
the lessor acquired the goods or the right to possession and
use of the goods before signing the lease contract;
(B) The lessee's approval of the contract by which the
lessor acquired the goods or the right to possession and use of
the goods is a condition to effectiveness of the lease contract;
or
(C) The lessee, before signing the lease contract,
receives an accurate and complete statement designating the
promises and warranties, and any disclaimers of warranties,
limitations or modifications of remedies, or liquidated damages, including those of a third party, such as the manufacturer of the goods, provided to the lessor by the person supplying the goods in connection with or as part of the contract
by which the lessor acquired the goods or the right to possession and use of the goods.
(h) "Goods" means all things that are movable at the time
of identification to the lease contract, or are fixtures (RCW
62A.2A-309), but the term does not include money, documents, instruments, accounts, chattel paper, general intangibles, or minerals or the like, including oil and gas, before
extraction. The term also includes the unborn young of animals.
(i) "Installment lease contract" means a lease contract
that authorizes or requires the delivery of goods in separate
lots to be separately accepted, even though the lease contract
contains a clause "each delivery is a separate lease" or its
equivalent.
(j) "Lease" means a transfer of the right to possession
and use of goods for a term in return for consideration, but a
sale, including a sale on approval or a sale or return, or retention or creation of a security interest is not a lease. Unless the
context clearly indicates otherwise, the term includes a sublease.
(k) "Lease agreement" means the bargain, with respect to
the lease, of the lessor and the lessee in fact as found in their
language or by implication from other circumstances includ(2004 Ed.)
Leases
ing course of dealing or usage of trade or course of performance as provided in this Article. Unless the context clearly
indicates otherwise, the term includes a sublease agreement.
(l) "Lease contract" means the total legal obligation that
results from the lease agreement as affected by this Article
and any other applicable rules of law. Unless the context
clearly indicates otherwise, the term includes a sublease contract.
(m) "Leasehold interest" means the interest of the lessor
or the lessee under a lease contract.
(n) "Lessee" means a person who acquires the right to
possession and use of goods under a lease. Unless the context
clearly indicates otherwise, the term includes a sublessee.
(o) "Lessee in ordinary course of business" means a person who in good faith and without knowledge that the lease to
him or her is in violation of the ownership rights or security
interest or leasehold interest of a third party in the goods,
leases in ordinary course from a person in the business of
selling or leasing goods of that kind, but does not include a
pawnbroker. "Leasing" may be for cash, or by exchange of
other property, or on secured or unsecured credit and includes
receiving goods or documents of title under a preexisting
lease contract but does not include a transfer in bulk or as
security for or in total or partial satisfaction of a money debt.
(p) "Lessor" means a person who transfers the right to
possession and use of goods under a lease. Unless the context
clearly indicates otherwise, the term includes a sublessor.
(q) "Lessor's residual interest" means the lessor's interest
in the goods after expiration, termination, or cancellation of
the lease contract.
(r) "Lien" means a charge against or interest in goods to
secure payment of a debt or performance of an obligation, but
the term does not include a security interest.
(s) "Lot" means a parcel or a single article that is the subject matter of a separate lease or delivery, whether or not it is
sufficient to perform the lease contract.
(t) "Merchant lessee" means a lessee that is a merchant
with respect to goods of the kind subject to the lease.
(u) "Present value" means the amount as of a date certain
of one or more sums payable in the future, discounted to the
date certain. The discount is determined by the interest rate
specified by the parties if the rate was not manifestly unreasonable at the time the transaction was entered into; otherwise, the discount is determined by a commercially reasonable rate that takes into account the facts and circumstances
of each case at the time the transaction was entered into.
(v) "Purchase" includes taking by sale, lease, mortgage,
security interest, pledge, gift, or any other voluntary transaction creating an interest in goods.
(w) "Sublease" means a lease of goods the right to possession and use of which was acquired by the lessor as a lessee under an existing lease.
(x) "Supplier" means a person from whom a lessor buys
or leases goods to be leased under a finance lease.
(y) "Supply contract" means a contract under which a
lessor buys or leases goods to be leased.
(z) "Termination" occurs when either party pursuant to a
power created by agreement or law puts an end to the lease
contract otherwise than for default.
(2) Other definitions applying to this Article or to specified Parts thereof, and the sections in which they appear are:
(2004 Ed.)
62A.2A-105
"Accessions."
RCW 62A.2A-310(1).
"Construction mortgage."
RCW 62A.2A-309(1)(d).
"Encumbrance."
RCW 62A.2A-309(1)(e).
"Fixtures."
RCW 62A.2A-309(1)(a).
"Fixture filing."
RCW 62A.2A-309(1)(b).
"Purchase money lease." RCW 62A.2A-309(1)(c).
(3) The following definitions in other Articles apply to
this Article:
"Account."
RCW 62A.9A-102(a)(2).
"Between merchants." RCW 62A.2-104(3).
"Buyer."
RCW 62A.2-103(1)(a).
"Chattel paper."
RCW 62A.9A-102(a)(11).
"Consumer goods."
RCW 62A.9A-102(a)(23).
"Document."
RCW 62A.9A-102(a)(30).
"Entrusting."
RCW 62A.2-403(3).
"General intangible."
RCW 62A.9A-102(a)(42).
"Good faith."
RCW 62A.2-103(1)(b).
"Instrument."
RCW 62A.9A-102(a)(47).
"Merchant."
RCW 62A.2-104(1).
"Mortgage."
RCW 62A.9A-102(a)(55).
"Pursuant to commitment."
RCW 62A.9A-102(a)(68).
"Receipt."
RCW 62A.2-103(1)(c).
"Sale."
RCW 62A.2-106(1).
"Sale on approval."
RCW 62A.2-326.
"Sale or return."
RCW 62A.2-326.
"Seller."
RCW 62A.2-103(1)(d).
(4) In addition, Article 62A.1 RCW contains general definitions and principles of construction and interpretation
applicable throughout this Article. [2000 c 250 § 9A-808;
1993 c 230 § 2A-103.]
Effective date—2000 c 250: See RCW 62A.9A-701.
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-104
62A.2A-104 Leases subject to other law. (1) A lease,
although subject to this Article, is also subject to any applicable:
(a) Certificate of title statute of this state (chapters 46.12
and 88.02 RCW);
(b) Certificate of title statute of another jurisdiction
(RCW 62A.2A-105); or
(c) Consumer protection statute of this state.
(2) In case of conflict between this Article, other than
RCW 62A.2A-105, 62A.2A-304(3), and 62A.2A-305(3), and
a statute referred to in subsection (1) of this section, the statute or decision controls.
(3) Failure to comply with an applicable law has only the
effect specified therein. [1993 c 230 § 2A-104.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-105
62A.2A-105 Territorial application of article to
goods covered by certificate of title. Subject to the provisions of RCW 62A.2A-304(3) and 62A.2A-305(3), with
respect to goods covered by a certificate of title issued under
a statute of this state or of another jurisdiction, compliance
and the effect of compliance or noncompliance with a certificate of title statute are governed by the law (including the
conflict of laws rules) of the jurisdiction issuing the certificate until the earlier of (a) surrender of the certificate, or (b)
[Title 62A RCW—page 29]
62A.2A-106
Title 62A RCW: Uniform Commercial Code
four months after the goods are removed from that jurisdiction and thereafter until a new certificate of title is issued by
another jurisdiction. [1993 c 230 § 2A-105.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-106
62A.2A-106 Limitation on power of parties to consumer lease to choose applicable law and judicial forum.
(1) If the law chosen by the parties to a consumer lease is that
of a jurisdiction other than a jurisdiction (a) in which the lessee resides at the time the lease agreement becomes enforceable or within thirty days thereafter, (b) in which the goods
are to be used, or (c) in which the lessee executes the lease,
the choice is not enforceable.
(2) If the judicial forum or the forum for dispute resolution chosen by the parties to a consumer lease is a jurisdiction
other than a jurisdiction (a) in which the lessee resides at the
time the lease agreement becomes enforceable or within
thirty days thereafter, (b) in which the goods are to be used,
or (c) in which the lease is executed by the lessee, the choice
is not enforceable. [1993 c 230 § 2A-106.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-107
62A.2A-107 Waiver or renunciation of claim or right
after default. Any claim or right arising out of an alleged
default or breach of warranty may be discharged in whole or
in part without consideration by a written waiver or renunciation signed and delivered by the aggrieved party. [1993 c
230 § 2A-107.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-108
62A.2A-108 Unconscionability. (1) If the court as a
matter of law finds a lease contract or any clause of a lease
contract to have been unconscionable at the time it was made
the court may refuse to enforce the lease contract, or it may
enforce the remainder of the lease contract without the
unconscionable clause, or it may so limit the application of
any unconscionable clause as to avoid any unconscionable
result.
(2) If a party claims that, or it appears to the court that,
the lease contract or a clause within the contract may be
unconscionable, the court shall allow a reasonable opportunity to present evidence as to the lease or clause's commercial
setting, purpose, and effect to aid the court in making the
determination. [1993 c 230 § 2A-108.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-201
62A.2A-201 Statute of frauds. (1) A lease contract is
not enforceable by way of action or defense unless:
(a) The total payments to be made under the lease contract, excluding payments for options to renew or buy, are
less than one thousand dollars; or
(b) There is a writing, signed by the party against whom
enforcement is sought or by that party's authorized agent, sufficient to indicate that a lease contract has been made
between the parties and to describe the goods leased and the
lease term.
(2) Any description of leased goods or of the lease term
is sufficient and satisfies subsection (1)(b) of this section,
whether or not it is specific, if it reasonably identifies what is
described.
[Title 62A RCW—page 30]
(3) A writing is not insufficient because it omits or incorrectly states a term agreed upon, but the lease contract is not
enforceable under subsection (1)(b) of this section beyond
the lease term and the quantity of goods shown in the writing.
(4) A lease contract that does not satisfy the requirements of subsection (1) of this section, but which is valid in
other respects, is enforceable:
(a) If the goods are to be specially manufactured or
obtained for the lessee and are not suitable for lease or sale to
others in the ordinary course of the lessor's business, and the
lessor, before notice of repudiation is received and under circumstances that reasonably indicate that the goods are for the
lessee, has made either a substantial beginning of their manufacture or commitments for their procurement;
(b) If the party against whom enforcement is sought
admits in that party's pleading, testimony, or otherwise in
court that a lease contract was made, but the lease contract is
not enforceable under this provision beyond the quantity of
goods admitted; or
(c) With respect to goods that have been received and
accepted by the lessee.
(5) The lease term under a lease contract referred to in
subsection (4) of this section is:
(a) If there is a writing signed by the party against whom
enforcement is sought or by that party's authorized agent
specifying the lease term, the term so specified;
(b) If the party against whom enforcement is sought
admits in that party's pleading, testimony, or otherwise in
court a lease term, the term so admitted; or
(c) A reasonable lease term. [1993 c 230 § 2A-201.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-202
62A.2A-202 Final written expression: Parol or
extrinsic evidence. Terms with respect to which the confirmatory memoranda of the parties agree or which are otherwise set forth in a writing intended by the parties as a final
expression of their agreement with respect to such terms as
are included therein may not be contradicted by evidence of
any prior agreement or of a contemporaneous oral agreement
but may be explained or supplemented:
(1) By course of dealing or usage of trade or by course of
performance; and
(2) By evidence of consistent additional terms unless the
court finds the writing to have been intended also as a complete and exclusive statement of the terms of the agreement.
[1993 c 230 § 2A-202.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-203
62A.2A-203 Seals inoperative. The affixing of a seal
to a writing evidencing a lease contract or an offer to enter
into a lease contract does not render the writing a sealed
instrument and the law with respect to sealed instruments
does not apply to the lease contract or offer. [1993 c 230 §
2A-203.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-204
62A.2A-204 Formation in general. (1) A lease contract may be made in any manner sufficient to show agreement, including conduct by both parties which recognizes the
existence of a lease contract.
(2004 Ed.)
Leases
(2) An agreement sufficient to constitute a lease contract
may be found although the moment of its making is undetermined.
(3) Although one or more terms are left open, a lease
contract does not fail for indefiniteness if the parties have
intended to make a lease contract and there is a reasonably
certain basis for giving an appropriate remedy. [1993 c 230 §
2A-204.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-210
(3) Although an attempt at modification or rescission
does not satisfy the requirements of subsection (2) of this section, it may operate as a waiver.
(4) A party who has made a waiver affecting an executory portion of a lease contract may retract the waiver by reasonable notification received by the other party that strict performance will be required of any term waived, unless the
retraction would be unjust in view of a material change of
position in reliance on the waiver. [1993 c 230 § 2A-208.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-205
62A.2A-205 Firm offers. An offer by a merchant to
lease goods to or from another person in a signed writing that
by its terms gives assurance it will be held open is not revocable, for lack of consideration, during the time stated or, if
no time is stated, for a reasonable time, but in no event may
the period of irrevocability exceed three months. Any such
term of assurance on a form supplied by the offeree must be
separately signed by the offeror. [1993 c 230 § 2A-205.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-206
62A.2A-206 Offer and acceptance in formation of
lease contract. (1) Unless otherwise unambiguously indicated by the language or circumstances, an offer to make a
lease contract must be construed as inviting acceptance in
any manner and by any medium reasonable in the circumstances.
(2) If the beginning of a requested performance is a reasonable mode of acceptance, an offeror who is not notified of
acceptance within a reasonable time may treat the offer as
having lapsed before acceptance. [1993 c 230 § 2A-206.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-207
62A.2A-207 Course of performance or practical construction. (1) If a lease contract involves repeated occasions
for performance by either party with knowledge of the nature
of the performance and opportunity for objection to it by the
other, any course of performance accepted or acquiesced in
without objection is relevant to determine the meaning of the
lease agreement.
(2) The express terms of a lease agreement and any
course of performance, as well as any course of dealing and
usage of trade, must be construed whenever reasonable as
consistent with each other; but if that construction is unreasonable, express terms control course of performance, course
of performance controls both course of dealing and usage of
trade, and course of dealing controls usage of trade.
(3) Subject to the provisions of RCW 62A.2A-208 on
modification and waiver, course of performance is relevant to
show a waiver or modification of any term inconsistent with
the course of performance. [1993 c 230 § 2A-207.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-208
62A.2A-208 Modification, rescission, and waiver. (1)
An agreement modifying a lease contract needs no consideration to be binding.
(2) A signed lease agreement that excludes modification
or rescission except by a signed writing may not be otherwise
modified or rescinded, but, except as between merchants,
such a requirement on a form supplied by a merchant must be
separately signed by the other party.
(2004 Ed.)
62A.2A-209
62A.2A-209 Lessee under finance lease as beneficiary of supply contract. (1) The benefit of a supplier's
promises to the lessor under the supply contract and of all
warranties, whether express or implied, including those of
any third party provided in connection with or as part of the
supply contract, extends to the lessee to the extent of the lessee's leasehold interest under a finance lease related to the
supply contract, but is subject to the terms of the warranty
and of the supply contract and all defenses or claims arising
therefrom.
(2) The extension of the benefit of a supplier's promises
and of warranties to the lessee (RCW 62A.2A-209(1)) does
not: (i) Modify the rights and obligations of the parties to the
supply contract, whether arising therefrom or otherwise, or
(ii) impose any duty or liability under the supply contract on
the lessee.
(3) Any modification or rescission of the supply contract
by the supplier and the lessor is effective between the supplier and the lessee unless, before the modification or rescission, the supplier has received notice that the lessee has
entered into a finance lease related to the supply contract. If
the modification or rescission is effective between the supplier and the lessee, the lessor is deemed to have assumed, in
addition to the obligations of the lessor to the lessee under the
lease contract, promises of the supplier to the lessor and warranties that were so modified or rescinded as they existed and
were available to the lessee before modification or rescission.
(4) In addition to the extension of the benefit of the supplier's promises and of warranties to the lessee under subsection (1) of this section, the lessee retains all rights that the lessee may have against the supplier which arise from an agreement between the lessee and the supplier or under other law.
[1993 c 230 § 2A-209.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-210
62A.2A-210 Express warranties. (1) Express warranties by the lessor are created as follows:
(a) Any affirmation of fact or promise made by the lessor
to the lessee which relates to the goods and becomes part of
the basis of the bargain creates an express warranty that the
goods will conform to the affirmation or promise.
(b) Any description of the goods which is made part of
the basis of the bargain creates an express warranty that the
goods will conform to the description.
(c) Any sample or model that is made part of the basis of
the bargain creates an express warranty that the whole of the
goods will conform to the sample or model.
(2) It is not necessary to the creation of an express warranty that the lessor use formal words, such as "warrant" or
[Title 62A RCW—page 31]
62A.2A-211
Title 62A RCW: Uniform Commercial Code
"guarantee," or that the lessor have a specific intention to
make a warranty, but an affirmation merely of the value of
the goods or a statement purporting to be merely the lessor's
opinion or commendation of the goods does not create a warranty. [1993 c 230 § 2A-210.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-211
62A.2A-211 Warranties against interference and
against infringement; lessee's obligation against infringement. (1) There is in a lease contract a warranty that for the
lease term no person holds a claim to or interest in the goods
that arose from an act or omission of the lessor, other than a
claim by way of infringement or the like, which will interfere
with the lessee's enjoyment of its leasehold interest.
(2) Except in a finance lease there is in a lease contract
by a lessor who is a merchant regularly dealing in goods of
the kind a warranty that the goods are delivered free of the
rightful claim of any person by way of infringement or the
like.
(3) A lessee who furnishes specifications to a lessor or a
supplier shall hold the lessor and the supplier harmless
against any claim by way of infringement or the like that
arises out of compliance with the specifications. [1993 c 230
§ 2A-211.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-212
62A.2A-212 Implied warranty of merchantability.
(1) Except in a finance lease, a warranty that the goods will
be merchantable is implied in a lease contract if the lessor is
a merchant with respect to goods of that kind.
(2) Goods to be merchantable must be at least such as:
(a) Pass without objection in the trade under the description in the lease agreement;
(b) In the case of fungible goods, are of fair average
quality within the description;
(c) Are fit for the ordinary purposes for which goods of
that type are used;
(d) Run, within the variation permitted by the lease
agreement, of even kind, quality, and quantity within each
unit and among all units involved;
(e) Are adequately contained, packaged, and labeled as
the lease agreement may require; and
(f) Conform to any promises or affirmations of fact made
on the container or label.
(3) Other implied warranties may arise from course of
dealing or usage of trade. [1993 c 230 § 2A-212.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-213
62A.2A-213 Implied warranty of fitness for particular purpose. Except in a finance lease, if the lessor at the
time the lease contract is made has reason to know of any particular purpose for which the goods are required and that the
lessee is relying on the lessor's skill or judgment to select or
furnish suitable goods, there is in the lease contract an
implied warranty that the goods will be fit for that purpose.
[1993 c 230 § 2A-213.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-214
62A.2A-214 Exclusion or modification of warranties.
(1) Words or conduct relevant to the creation of an express
[Title 62A RCW—page 32]
warranty and words or conduct tending to negate or limit a
warranty must be construed wherever reasonable as consistent with each other; but, subject to the provisions of RCW
62A.2A-202 on parol or extrinsic evidence, negation or limitation is inoperative to the extent that the construction is
unreasonable.
(2) Subject to subsection (3) of this section, to exclude or
modify the implied warranty of merchantability or any part of
it the language must mention "merchantability," be by a writing, and be conspicuous. Subject to subsection (3) of this section, to exclude or modify any implied warranty of fitness the
exclusion must be by a writing and be conspicuous. Language to exclude all implied warranties of fitness is sufficient
if it is in writing, is conspicuous and states, for example,
"There is no warranty that the goods will be fit for a particular
purpose."
(3) Notwithstanding subsection (2) of this section, but
subject to subsection (4) of this section:
(a) Unless the circumstances indicate otherwise, all
implied warranties are excluded by expressions like "as is,"
or "with all faults," or by other language that in common
understanding calls the lessee's attention to the exclusion of
warranties and makes plain that there is no implied warranty,
if in writing and conspicuous;
(b) If the lessee before entering into the lease contract
has examined the goods or the sample or model as fully as
desired or has refused to examine the goods, there is no
implied warranty with regard to defects that an examination
ought in the circumstances to have revealed; and
(c) An implied warranty may also be excluded or modified by course of dealing, course of performance, or usage of
trade.
(4) To exclude or modify a warranty against interference
or against infringement (RCW 62A.2A-211) or any part of it,
the language must be specific, be by a writing, and be conspicuous, unless the circumstances, including course of performance, course of dealing, or usage of trade, give the lessee
reason to know that the goods are being leased subject to a
claim or interest of any person. [1993 c 230 § 2A-214.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-215
62A.2A-215 Cumulation and conflict of warranties
express or implied. Warranties, whether express or implied,
must be construed as consistent with each other and as cumulative, but if that construction is unreasonable, the intention
of the parties determines which warranty is dominant. In
ascertaining that intention the following rules apply:
(a) Exact or technical specifications displace an inconsistent sample or model or general language of description.
(b) A sample from an existing bulk displaces inconsistent general language of description.
(c) Express warranties displace inconsistent implied
warranties other than an implied warranty of fitness for a particular purpose. [1993 c 230 § 2A-215.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-216
62A.2A-216 Third party beneficiaries of express and
implied warranties. A warranty to or for the benefit of a lessee under this Article, whether express or implied, extends to
any natural person who is in the family or household of the
(2004 Ed.)
Leases
lessee or who is a guest in the lessee's home if it is reasonable
to expect that such person may use, consume, or be affected
by the goods and who is injured in person by breach of the
warranty. This section does not displace principles of law and
equity that extend a warranty to or for the benefit of a lessee
to other persons. The operation of this section may not be
excluded, modified, or limited, but an exclusion, modification, or limitation of the warranty, including any with respect
to rights and remedies, effective against the lessee is also
effective against any beneficiary designated under this section. [1993 c 230 § 2A-216.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-217
62A.2A-217 Identification. Identification of goods as
goods to which a lease contract refers may be made at any
time and in any manner explicitly agreed to by the parties. In
the absence of explicit agreement, identification occurs:
(a) When the lease contract is made if the lease contract
is for a lease of goods that are existing and identified;
(b) When the goods are shipped, marked, or otherwise
designated by the lessor as goods to which the lease contract
refers, if the lease contract is for a lease of goods that are not
existing and identified; or
(c) When the young are conceived, if the lease contract is
for a lease of unborn young of animals. [1993 c 230 § 2A217.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-218
62A.2A-218 Insurance and proceeds. (1) A lessee
obtains an insurable interest when existing goods are identified to the lease contract even though the goods identified are
nonconforming and the lessee has an option to reject them.
(2) If a lessee has an insurable interest only by reason of
the lessor's identification of the goods, the lessor, until
default or insolvency or notification to the lessee that identification is final, may substitute other goods for those identified.
(3) Notwithstanding a lessee's insurable interest under
subsections (1) and (2) of this section, the lessor retains an
insurable interest until an option to buy has been exercised by
the lessee and risk of loss has passed to the lessee.
(4) Nothing in this section impairs any insurable interest
recognized under any other statute or rule of law.
(5) The parties by agreement may determine that one or
more parties have an obligation to obtain and pay for insurance covering the goods and by agreement may determine the
beneficiary of the proceeds of the insurance. [1993 c 230 §
2A-218.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-219
62A.2A-219 Risk of loss. (1) Except in the case of a
finance lease, risk of loss is retained by the lessor and does
not pass to the lessee. In the case of a finance lease, risk of
loss passes to the lessee.
(2) Subject to the provisions of this Article on the effect
of default on risk of loss (RCW 62A.2A-220), if risk of loss
is to pass to the lessee and the time of passage is not stated,
the following rules apply:
(a) If the lease contract requires or authorizes the goods
to be shipped by carrier:
(2004 Ed.)
62A.2A-301
(i) And it does not require delivery at a particular destination, the risk of loss passes to the lessee when the goods are
duly delivered to the carrier; but
(ii) If it does require delivery at a particular destination
and the goods are there duly tendered while in the possession
of the carrier, the risk of loss passes to the lessee when the
goods are there duly so tendered as to enable the lessee to
take delivery.
(b) If the goods are held by a bailee to be delivered without being moved, the risk of loss passes to the lessee on
acknowledgment by the bailee of the lessee's right to possession of the goods.
(c) In any case not within subsection (2)(a) or (b) of this
section, the risk of loss passes to the lessee on the lessee's
receipt of the goods if the lessor, or, in the case of a finance
lease, the supplier, is a merchant; otherwise the risk passes to
the lessee on tender of delivery. [1993 c 230 § 2A-219.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-220
62A.2A-220 Effect of default on risk of loss. (1)
Where risk of loss is to pass to the lessee and the time of passage is not stated:
(a) If a tender or delivery of goods so fails to conform to
the lease contract as to give a right of rejection, the risk of
their loss remains with the lessor, or, in the case of a finance
lease, the supplier, until cure or acceptance.
(b) If the lessee rightfully revokes acceptance, he or she,
to the extent of any deficiency in his or her effective insurance coverage, may treat the risk of loss as having remained
with the lessor from the beginning.
(2) Whether or not risk of loss is to pass to the lessee, if
the lessee as to conforming goods already identified to a lease
contract repudiates or is otherwise in default under the lease
contract, the lessor, or, in the case of a finance lease, the supplier, to the extent of any deficiency in his or her effective
insurance coverage may treat the risk of loss as resting on the
lessee for a commercially reasonable time. [1993 c 230 § 2A220.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-221
62A.2A-221 Casualty to identified goods. If a lease
contract requires goods identified when the lease contract is
made, and the goods suffer casualty without fault of the lessee, the lessor or the supplier, before delivery, or the goods
suffer casualty before risk of loss passes to the lessee pursuant to the lease agreement or RCW 62A.2A-219, then:
(a) If the loss is total, the lease contract is avoided; and
(b) If the loss is partial or the goods have so deteriorated
as to no longer conform to the lease contract, the lessee may
nevertheless demand inspection and at his or her option either
treat the lease contract as avoided or, except in a finance
lease, accept the goods with due allowance from the rent payable for the balance of the lease term for the deterioration or
the deficiency in quantity but without further right against the
lessor. [1993 c 230 § 2A-221.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-301
62A.2A-301 Enforceability of lease contract. Except
as otherwise provided in this Article, a lease contract is effective and enforceable according to its terms between the par[Title 62A RCW—page 33]
62A.2A-302
Title 62A RCW: Uniform Commercial Code
ties, against purchasers of the goods and against creditors of
the parties. [1993 c 230 § 2A-301.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-302
62A.2A-302 Title to and possession of goods. Except
as otherwise provided in this Article, each provision of this
Article applies whether the lessor or a third party has title to
the goods, and whether the lessor, the lessee, or a third party
has possession of the goods, notwithstanding any statute or
rule of law that possession or the absence of possession is
fraudulent. [1993 c 230 § 2A-302.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-303
62A.2A-303 Alienability of party's interest under
lease contract or of lessor's residual interest in goods; delegation of performance; transfer of rights. (1) As used in
this section, "creation of a security interest" includes the sale
of a lease contract that is subject to Article 9A, Secured
Transactions, by reason of RCW 62A.9A-109(a)(3).
(2) Except as provided in subsection (3) of this section
and RCW 62A.9A-407, a provision in a lease agreement
which (a) prohibits the voluntary or involuntary transfer,
including a transfer by sale, sublease, creation or enforcement of a security interest, or attachment, levy, or other judicial process, of an interest of a party under the lease contract
or of the lessor's residual interest in the goods, or (b) makes
such a transfer an event of default, gives rise to the rights and
remedies provided in subsection (4) of this section, but a
transfer that is prohibited or is an event of default under the
lease agreement is otherwise effective.
(3) A provision in a lease agreement which (a) prohibits
a transfer of a right to damages for default with respect to the
whole lease contract or of a right to payment arising out of the
transferor's due performance of the transferor's entire obligation, or (b) makes such a transfer an event of default, is not
enforceable, and such a transfer is not a transfer that materially impairs the prospect of obtaining return performance by,
materially changes the duty of, or materially increases the
burden or risk imposed on, the other party to the lease contract within the purview of subsection (4) of this section.
(4) Subject to subsection (3) of this section and RCW
62A.9A-407:
(a) If a transfer is made which is made an event of default
under a lease agreement, the party to the lease contract not
making the transfer, unless that party waives the default or
otherwise agrees, has the rights and remedies described in
RCW 62A.2A-501(2);
(b) If subsection (4)(a) of this section is not applicable
and if a transfer is made that (i) is prohibited under a lease
agreement or (ii) materially impairs the prospect of obtaining
return performance by, materially changes the duty of, or
materially increases the burden or risk imposed on, the other
party to the lease contract, unless the party not making the
transfer agrees at any time to the transfer in the lease contract
or otherwise, then, except as limited by contract, (A) the
transferor is liable to the party not making the transfer for
damages caused by the transfer to the extent that the damages
could not reasonably be prevented by the party not making
the transfer and (B) a court having jurisdiction may grant
[Title 62A RCW—page 34]
other appropriate relief, including cancellation of the lease
contract or an injunction against the transfer.
(5) A transfer of "the lease" or of "all my rights under the
lease," or a transfer in similar general terms, is a transfer of
rights and, unless the language or the circumstances, as in a
transfer for security, indicate the contrary, the transfer is a
delegation of duties by the transferor to the transferee.
Acceptance by the transferee constitutes a promise by the
transferee to perform those duties. The promise is enforceable by either the transferor or the other party to the lease
contract.
(6) Unless otherwise agreed by the lessor and the lessee,
a delegation of performance does not relieve the transferor as
against the other party of any duty to perform or of any liability for default.
(7) In a consumer lease, to prohibit the transfer of an
interest of a party under the lease contract or to make a transfer an event of default, the language must be specific, by a
writing, and conspicuous. [2001 c 32 § 10; 2000 c 250 § 9A809; 1993 c 230 § 2A-303.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
Effective date—2000 c 250: See RCW 62A.9A-701.
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-304
62A.2A-304 Subsequent lease of goods by lessor. (1)
Subject to RCW 62A.2A-303, a subsequent lessee from a lessor of goods under an existing lease contract obtains, to the
extent of the leasehold interest transferred, the leasehold
interest in the goods that the lessor had or had power to transfer, and except as provided in subsection (2) of this section
and RCW 62A.2A-527(4), takes subject to the existing lease
contract. A lessor with voidable title has power to transfer a
good leasehold interest to a good faith subsequent lessee for
value, but only to the extent set forth in the preceding sentence. If goods have been delivered under a transaction of
purchase, the lessor has that power even though:
(a) The lessor's transferor was deceived as to the identity
of the lessor;
(b) The delivery was in exchange for a check which is
later dishonored;
(c) It was agreed that the transaction was to be a "cash
sale"; or
(d) The delivery was procured through fraud punishable
as larcenous under the criminal law.
(2) A subsequent lessee in the ordinary course of business from a lessor who is a merchant dealing in goods of that
kind to whom the goods were entrusted by the existing lessee
of that lessor before the interest of the subsequent lessee
became enforceable against that lessor obtains, to the extent
of the leasehold interest transferred, all of that lessor's and the
existing lessee's rights to the goods, and takes free of the
existing lease contract.
(3) A subsequent lessee from the lessor of goods that are
subject to an existing lease contract and are covered by a certificate of title issued under a statute of this state or of another
jurisdiction takes no greater rights than those provided both
by this section and by the certificate of title statute. [1993 c
230 § 2A-304.]
Effective date—1993 c 230: See RCW 62A.11-110.
(2004 Ed.)
Leases
62A.2A-305
62A.2A-305 Sale or sublease of goods by lessee. (1)
Subject to the provisions of RCW 62A.2A-303, a buyer or
sublessee from the lessee of goods under an existing lease
contract obtains, to the extent of the interest transferred, the
leasehold interest in the goods that the lessee had or had
power to transfer, and except as provided in subsection (2) of
this section and RCW 62A.2A-511(4), takes subject to the
existing lease contract. A lessee with a voidable leasehold
interest has power to transfer a good leasehold interest to a
good faith buyer for value or a good faith sublessee for value,
but only to the extent set forth in the preceding sentence.
When goods have been delivered under a transaction of lease
the lessee has that power even though:
(a) The lessor was deceived as to the identity of the lessee;
(b) The delivery was in exchange for a check which is
later dishonored; or
(c) The delivery was procured through fraud punishable
as larcenous under the criminal law.
(2) A buyer in the ordinary course of business or a
sublessee in the ordinary course of business from a lessee
who is a merchant dealing in goods of that kind to whom the
goods were entrusted by the lessor obtains, to the extent of
the interest transferred, all of the lessor's and lessee's rights to
the goods, and takes free of the existing lease contract.
(3) A buyer or sublessee from the lessee of goods that are
subject to an existing lease contract and are covered by a certificate of title issued under a statute of this state or of another
jurisdiction takes no greater rights than those provided both
by this section and by the certificate of title statute. [1993 c
230 § 2A-305.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-306
62A.2A-306 Priority of certain liens arising by operation of law. (a) "Possessory lien." In this section, "possessory lien" has the meaning defined in RCW 62A.9A-333.
(b) Priority of possessory lien. A possessory lien on
goods subject to a lease contract has priority over any interest
of the lessor or the lessee under the lease contract or this Article only if the lien is created by a statute that expressly so provides.
(c) A preparer lien or processor lien properly created
pursuant to chapter 60.13 RCW or a depositor's lien created
pursuant to chapter 22.09 RCW takes priority over any perfected or unperfected security interest. [2001 c 32 § 11; 1993
c 230 § 2A-306.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-307
62A.2A-307 Priority of liens arising by attachment
or levy on, security interests in, and other claims to goods.
(1) Except as otherwise provided in RCW 62A.2A-306, a
creditor of a lessee takes subject to the lease contract.
(2) Except as otherwise provided in subsection (3) of this
section and in RCW 62A.2A-306 and 62A.2A-308, a creditor
of a lessor takes subject to the lease contract unless the creditor holds a lien that attached to the goods before the lease
contract became enforceable.
(3) Except as otherwise provided in RCW 62A.9A-317,
62A.9A-321, and 62A.9A-323, a lessee takes a leasehold
(2004 Ed.)
62A.2A-309
interest subject to a security interest held by a creditor of the
lessor. [2000 c 250 § 9A-810; 1993 c 230 § 2A-307.]
Effective date—2000 c 250: See RCW 62A.9A-701.
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-308
62A.2A-308 Special rights of creditors. (1) A creditor
of a lessor in possession of goods subject to a lease contract
may treat the lease contract as void if as against the creditor
retention of possession by the lessor is fraudulent under any
statute or rule of law, but retention of possession in good faith
and current course of trade by the lessor for a commercially
reasonable time after the lease contract becomes enforceable
is not fraudulent.
(2) Nothing in this Article impairs the rights of creditors
of a lessor if the lease contract (a) becomes enforceable, not
in current course of trade but in satisfaction of or as security
for a preexisting claim for money, security, or the like, and
(b) is made under circumstances which under any statute or
rule of law apart from this Article would constitute the transaction a fraudulent transfer or voidable preference.
(3) A creditor of a seller may treat a sale or an identification of goods to a contract for sale as void if as against the
creditor retention of possession by the seller is fraudulent
under any statute or rule of law, but retention of possession of
the goods pursuant to a lease contract entered into by the
seller as lessee and the buyer as lessor in connection with the
sale or identification of the goods is not fraudulent if the
buyer bought for value and in good faith. [1993 c 230 § 2A308.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-309
62A.2A-309 Lessor's and lessee's rights when goods
become fixtures. (1) In this section:
(a) Goods are "fixtures" when they become so related to
particular real estate that an interest in them arises under real
estate law;
(b) A "fixture filing" is the filing, in the office where a
record of a mortgage on the real estate would be filed or
recorded, of a financing statement covering goods that are or
are to become fixtures and conforming to the requirements of
RCW 62A.9A-502 (a) and (b);
(c) A lease is a "purchase money lease" unless the lessee
has possession or use of the goods or the right to possession
or use of the goods before the lease agreement is enforceable;
(d) A mortgage is a "construction mortgage" to the
extent it secures an obligation incurred for the construction of
an improvement on land including the acquisition cost of the
land, if the recorded writing so indicates; and
(e) "Encumbrance" includes real estate mortgages and
other liens on real estate and all other rights in real estate that
are not ownership interests.
(2) Under this Article a lease may be of goods that are
fixtures or may continue in goods that become fixtures, but
no lease exists under this Article of ordinary building materials incorporated into an improvement on land.
(3) This Article does not prevent creation of a lease of
fixtures pursuant to real estate law.
(4) The perfected interest of a lessor of fixtures has priority over a conflicting interest of an encumbrancer or owner
of the real estate if:
[Title 62A RCW—page 35]
62A.2A-310
Title 62A RCW: Uniform Commercial Code
(a) The lease is a purchase money lease, the conflicting
interest of the encumbrancer or owner arises before the goods
become fixtures, the interest of the lessor is perfected by a
fixture filing before the goods become fixtures or within
twenty days thereafter, and the lessee has an interest of record
in the real estate or is in possession of the real estate; or
(b) The interest of the lessor is perfected by a fixture filing before the interest of the encumbrancer or owner is of
record, the lessor's interest has priority over any conflicting
interest of a predecessor in title of the encumbrancer or
owner, and the lessee has an interest of record in the real
estate or is in possession of the real estate.
(5) The interest of a lessor of fixtures, whether or not
perfected, has priority over the conflicting interest of an
encumbrancer or owner of the real estate if:
(a) The fixtures are readily removable factory or office
machines, readily removable equipment that is not primarily
used or leased for use in the operation of the real estate, or
readily removable replacements of domestic appliances that
are goods subject to a consumer lease, and before the goods
become fixtures the lease contract is enforceable; or
(b) The conflicting interest is a lien on the real estate
obtained by legal or equitable proceedings after the lease contract is enforceable; or
(c) The encumbrancer or owner has consented in writing
to the lease or has disclaimed an interest in the goods as fixtures; or
(d) The lessee has a right to remove the goods as against
the encumbrancer or owner. If the lessee's right to remove
terminates, the priority of the interest of the lessor continues
for a reasonable time.
(6) Notwithstanding subsection (4)(a) of this section but
otherwise subject to subsections (4) and (5) of this section,
the interest of a lessor of fixtures, including the lessor's residual interest, is subordinate to the conflicting interest of an
encumbrancer of the real estate under a construction mortgage recorded before the goods become fixtures if the goods
become fixtures before the completion of the construction.
To the extent given to refinance a construction mortgage, the
conflicting interest of an encumbrancer of the real estate
under a mortgage has this priority to the same extent as the
encumbrancer of the real estate under the construction mortgage.
(7) In cases not within the preceding subsections, priority between the interest of a lessor of fixtures, including the
lessor's residual interest, and the conflicting interest of an
encumbrancer or owner of the real estate who is not the lessee
is determined by the priority rules governing conflicting
interests in real estate.
(8) If the interest of a lessor of fixtures, including the lessor's residual interest, has priority over all conflicting interests of all owners and encumbrancers of the real estate, the
lessor or the lessee may (a) on default, expiration, termination, or cancellation of the lease agreement but subject to the
lease agreement and this Article, or (b) if necessary to
enforce other rights and remedies of the lessor or lessee under
this Article, remove the goods from the real estate, free and
clear of all conflicting interests of all owners and encumbrancers of the real estate, but the lessor or lessee must reimburse any encumbrancer or owner of the real estate who is not
the lessee and who has not otherwise agreed for the cost of
[Title 62A RCW—page 36]
repair of any physical injury, but not for any diminution in
value of the real estate caused by the absence of the goods
removed or by any necessity of replacing them. A person
entitled to reimbursement may refuse permission to remove
until the party seeking removal gives adequate security for
the performance of this obligation.
(9) Even though the lease agreement does not create a
security interest, the interest of a lessor of fixtures, including
the lessor's residual interest, is perfected by filing a financing
statement as a fixture filing for leased goods that are or are to
become fixtures in accordance with the relevant provisions of
the Article on Secured Transactions, Article 62A.9A RCW.
[2000 c 250 § 9A-811; 1993 c 230 § 2A-309.]
Effective date—2000 c 250: See RCW 62A.9A-701.
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-310
62A.2A-310 Lessor's and lessee's rights when goods
become accessions. (1) Goods are "accessions" when they
are installed in or affixed to other goods.
(2) The interest of a lessor or a lessee under a lease contract entered into before the goods became accessions is superior to all interests in the whole except as stated in subsection
(4) of this section.
(3) The interest of a lessor or a lessee under a lease contract entered into at the time or after the goods became accessions is superior to all subsequently acquired interests in the
whole except as stated in subsection (4) of this section but is
subordinate to interests in the whole existing at the time the
lease contract was made unless the holders of such interests
in the whole have in writing consented to the lease, or disclaimed an interest in the goods as part of the whole, or the
accession is leased under tariff No. 74 for residential conversion burners leased by a natural gas utility.
(4) Unless the accession is leased under tariff No. 74 for
residential conversion burners leased by a natural gas utility,
the interest of a lessor or a lessee under a lease contract
described in subsection (2) or (3) of this section is subordinate to the interest of:
(a) A buyer in the ordinary course of business or a lessee
in the ordinary course of business of any interest in the whole
acquired after the goods became accessions;
(b) A creditor with a security interest in the whole perfected before the lease contract was made to the extent that
the creditor makes subsequent advances without knowledge
of the lease contract; or
(c) A creditor with a security interest in the whole which
is perfected by compliance with the requirements of a certificate-of-title statute under RCW 62A.9A-311(b).
(5) When under subsections (2) or (3) and (4) of this section a lessor or a lessee of accessions holds an interest that is
superior to all interests in the whole, the lessor or the lessee
may (a) on default, expiration, termination, or cancellation of
the lease contract by the other party but subject to the provisions of the lease contract and this Article, or (b) if necessary
to enforce his or her other rights and remedies under this Article, remove the goods from the whole, free and clear of all
interests in the whole, but he or she must reimburse any
holder of an interest in the whole who is not the lessee and
who has not otherwise agreed for the cost of repair of any
physical injury but not for any diminution in value of the
(2004 Ed.)
Leases
whole caused by the absence of the goods removed or by any
necessity for replacing them. A person entitled to reimbursement may refuse permission to remove until the party seeking
removal gives adequate security for the performance of this
obligation. [2000 c 250 § 9A-812; 1993 c 230 § 2A-310.]
Effective date—2000 c 250: See RCW 62A.9A-701.
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-311
62A.2A-311 Priority subject to subordination. Nothing in this Article prevents subordination by agreement by
any person entitled to priority. [1993 c 230 § 2A-311.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-401
62A.2A-401 Insecurity: Adequate assurance of performance. (1) A lease contract imposes an obligation on
each party that the other's expectation of receiving due performance will not be impaired.
(2) If reasonable grounds for insecurity arise with respect
to the performance of either party, the insecure party may
demand in writing adequate assurance of due performance.
Until the insecure party receives that assurance, if commercially reasonable the insecure party may suspend any performance for which he or she has not already received the
agreed return.
(3) A repudiation of the lease contract occurs if assurance of due performance adequate under the circumstances of
the particular case is not provided to the insecure party within
a reasonable time, not to exceed thirty days after receipt of a
demand by the other party.
(4) Between merchants, the reasonableness of grounds
for insecurity and the adequacy of any assurance offered must
be determined according to commercial standards.
(5) Acceptance of any nonconforming delivery or payment does not prejudice the aggrieved party's right to demand
adequate assurance of future performance. [1993 c 230 § 2A401.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-402
62A.2A-402 Anticipatory repudiation. If either party
repudiates a lease contract with respect to a performance not
yet due under the lease contract, the loss of which performance will substantially impair the value of the lease contract
to the other, the aggrieved party may:
(a) For a commercially reasonable time, await retraction
of repudiation and performance by the repudiating party;
(b) Make demand pursuant to RCW 62A.2A-401 and
await assurance of future performance adequate under the
circumstances of the particular case; or
(c) Resort to any right or remedy upon default under the
lease contract or this Article, even though the aggrieved party
has notified the repudiating party that the aggrieved party
would await the repudiating party's performance and assurance and has urged retraction. In addition, whether or not the
aggrieved party is pursuing one of the foregoing remedies,
the aggrieved party may suspend performance or, if the
aggrieved party is the lessor, proceed in accordance with the
provisions of this Article on the lessor's right to identify
goods to the lease contract notwithstanding default or to salvage unfinished goods (RCW 62A.2A-524). [1993 c 230 §
2A-402.]
(2004 Ed.)
62A.2A-405
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-403
62A.2A-403 Retraction of anticipatory repudiation.
(1) Until the repudiating party's next performance is due, the
repudiating party can retract the repudiation unless, since the
repudiation, the aggrieved party has canceled the lease contract or materially changed the aggrieved party's position or
otherwise indicated that the aggrieved party considers the
repudiation final.
(2) Retraction may be by any method that clearly indicates to the aggrieved party that the repudiating party intends
to perform under the lease contract and includes any assurance demanded under RCW 62A.2A-401.
(3) Retraction reinstates a repudiating party's rights
under a lease contract with due excuse and allowance to the
aggrieved party for any delay occasioned by the repudiation.
[1993 c 230 § 2A-403.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-404
62A.2A-404 Substituted performance. (1) If without
fault of the lessee, the lessor and the supplier, the agreed berthing, loading, or unloading facilities fail or the agreed type
of carrier becomes unavailable or the agreed manner of delivery otherwise becomes commercially impracticable, but a
commercially reasonable substitute is available, the substitute performance must be tendered and accepted.
(2) If the agreed means or manner of payment fails
because of domestic or foreign governmental regulation:
(a) The lessor may withhold or stop delivery or cause the
supplier to withhold or stop delivery unless the lessee provides a means or manner of payment that is commercially a
substantial equivalent; and
(b) If delivery has already been taken, payment by the
means or in the manner provided by the regulation discharges
the lessee's obligation unless the regulation is discriminatory,
oppressive, or predatory. [1993 c 230 § 2A-404.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-405
62A.2A-405 Excused performance. Subject to RCW
62A.2A-404 on substituted performance, the following rules
apply:
(a) Delay in delivery or nondelivery in whole or in part
by a lessor or a supplier who complies with subsections (b)
and (c) of this section is not a default under the lease contract
if performance as agreed has been made impracticable by the
occurrence of a contingency the nonoccurrence of which was
a basic assumption on which the lease contract was made or
by compliance in good faith with any applicable foreign or
domestic governmental regulation or order, whether or not
the regulation or order later proves to be invalid.
(b) If the causes mentioned in subsection (a) of this section affect only part of the lessor's or the supplier's capacity to
perform, he or she shall allocate production and deliveries
among his or her customers but at his or her option may
include regular customers not then under contract for sale or
lease as well as his or her own requirements for further manufacture. He or she may so allocate in any manner that is fair
and reasonable.
(c) The lessor seasonably shall notify the lessee and in
the case of a finance lease the supplier seasonably shall notify
[Title 62A RCW—page 37]
62A.2A-406
Title 62A RCW: Uniform Commercial Code
the lessor and the lessee, if known, that there will be delay or
nondelivery and, if allocation is required under subsection (b)
of this section, of the estimated quota thus made available for
the lessee. [1993 c 230 § 2A-405.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-406
62A.2A-406 Procedure on excused performance. (1)
If the lessee receives notification of a material or indefinite
delay or an allocation justified under RCW 62A.2A-405, the
lessee may by written notification to the lessor as to any
goods involved, and with respect to all of the goods if under
an installment lease contract the value of the whole lease contract is substantially impaired (RCW 62A.2A-510):
(a) Terminate the lease contract (RCW 62A.2A-505(2));
or
(b) Except in a finance lease, modify the lease contract
by accepting the available quota in substitution, with due
allowance from the rent payable for the balance of the lease
term for the deficiency but without further right against the
lessor.
(2) If, after receipt of a notification from the lessor under
RCW 62A.2A-405, the lessee fails so to modify the lease
agreement within a reasonable time not exceeding thirty
days, the lease contract lapses with respect to any deliveries
affected. [1993 c 230 § 2A-406.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-407
62A.2A-407 Irrevocable promises: Finance leases.
(1) In the case of a finance lease, the lessee's promises under
the lease contract become irrevocable and independent upon
the lessee's acceptance of the goods.
(2) A promise that has become irrevocable and independent under subsection (1) of this section:
(a) Is effective and enforceable between the parties, and
by or against third parties including assignees of the parties;
and
(b) Is not subject to cancellation, termination, modification, repudiation, excuse, or substitution without the consent
of the party to whom the promise runs.
(3) This section does not affect the validity under any
other law of a covenant in any lease contract making the lessee's promises irrevocable and independent upon the lessee's
acceptance of the goods. [1993 c 230 § 2A-407.]
referred to in subsections (2) and (3) of this section are cumulative.
(5) If the lease agreement covers both real property and
goods, the party seeking enforcement may proceed under this
Part 5 as to the goods, or under other applicable law as to both
the real property and the goods in accordance with that party's
rights and remedies in respect of the real property, in which
case this Part 5 does not apply. [1993 c 230 § 2A-501.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-502
62A.2A-502 Notice after default. Except as otherwise
provided in this Article or the lease agreement, the lessor or
lessee in default under the lease contract is not entitled to
notice of default or notice of enforcement from the other
party to the lease agreement. [1993 c 230 § 2A-502.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-503
62A.2A-503 Modification or impairment of rights
and remedies. (1) Except as otherwise provided in this Article, the lease agreement may include rights and remedies for
default in addition to or in substitution for those provided in
this Article and may limit or alter the measure of damages
recoverable under this Article.
(2) Resort to a remedy provided under this Article or in
the lease agreement is optional unless the remedy is expressly
agreed to be exclusive. If circumstances cause an exclusive or
limited remedy to fail of its essential purpose, or provision
for an exclusive remedy is unconscionable, remedy may be
had as provided in this Article.
(3) Consequential damages may be liquidated under
RCW 62A.2A-504, or may otherwise be limited, altered, or
excluded unless the limitation, alteration, or exclusion is
unconscionable. Limitation, alteration, or exclusion of consequential damages for injury to the person in the case of consumer goods is prima facie unconscionable but limitation,
alteration, or exclusion of damages where the loss is commercial is not prima facie unconscionable.
(4) Rights and remedies on default by the lessor or the
lessee with respect to any obligation or promise collateral or
ancillary to the lease contract are not impaired by this Article.
[1993 c 230 § 2A-503.]
Effective date—1993 c 230: See RCW 62A.11-110.
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-504
62A.2A-501
62A.2A-501 Default: Procedure. (1) Whether the lessor or the lessee is in default under a lease contract is determined by the lease agreement and this Article.
(2) If the lessor or the lessee is in default under the lease
contract, the party seeking enforcement has rights and remedies as provided in this Article and, except as limited by this
Article, as provided in the lease agreement.
(3) If the lessor or the lessee is in default under the lease
contract, the party seeking enforcement may reduce the
party's claim to judgment, or otherwise enforce the lease contract by self help or any available judicial procedure or nonjudicial procedure, including administrative proceeding, arbitration, or the like, in accordance with this Article.
(4) Except as otherwise provided in RCW 62A.1-106(1)
or this Article or the lease agreement, the rights and remedies
[Title 62A RCW—page 38]
62A.2A-504 Liquidation of damages. (1) Damages
payable by either party for default, or any other act or omission, including indemnity for loss or diminution of anticipated tax benefits or loss or damage to lessor's residual interest, may be liquidated in the lease agreement but only at an
amount or by a formula that is reasonable in light of the then
anticipated harm caused by the default or other act or omission.
(2) If the lease agreement provides for liquidation of
damages, and such provision does not comply with subsection (1) of this section, or such provision is an exclusive or
limited remedy that circumstances cause to fail of its essential purpose, remedy may be had as provided in this Article.
(3) If the lessor justifiably withholds or stops delivery of
goods because of the lessee's default or insolvency (RCW
62A.2A-525 or 62A.2A-526), the lessee is entitled to restitu(2004 Ed.)
Leases
tion of any amount by which the sum of his or her payments
exceeds:
(a) The amount to which the lessor is entitled by virtue of
terms liquidating the lessor's damages in accordance with
subsection (1) of this section; or
(b) In the absence of those terms, twenty percent of the
then present value of the total rent the lessee was obligated to
pay for the balance of the lease term, or, in the case of a consumer lease, the lesser of such amount or five hundred dollars.
(4) A lessee's right to restitution under subsection (3) of
this section is subject to offset to the extent the lessor establishes:
(a) A right to recover damages under the provisions of
this Article other than subsection (1) of this section; and
(b) The amount or value of any benefits received by the
lessee directly or indirectly by reason of the lease contract.
[1993 c 230 § 2A-504.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-505
62A.2A-505 Cancellation and termination and effect
of cancellation, termination, rescission, or fraud on rights
and remedies. (1) On cancellation of the lease contract, all
obligations that are still executory on both sides are discharged, but any right based on prior default or performance
survives, and the cancelling party also retains any remedy for
default of the whole lease contract or any unperformed balance.
(2) On termination of the lease contract, all obligations
that are still executory on both sides are discharged but any
right based on prior default or performance survives.
(3) Unless the contrary intention clearly appears, expressions of "cancellation," "rescission," or the like of the lease
contract may not be construed as a renunciation or discharge
of any claim in damages for an antecedent default.
(4) Rights and remedies for material misrepresentation
or fraud include all rights and remedies available under this
Article for default.
(5) Neither rescission nor a claim for rescission of the
lease contract nor rejection or return of the goods may bar or
be deemed inconsistent with a claim for damages or other
right or remedy. [1993 c 230 § 2A-505.]
62A.2A-508
breach of warranty or indemnity, the other action may be
commenced after the expiration of the time limited and
within six months after the termination of the first action
unless the termination resulted from voluntary discontinuance or from dismissal for failure or neglect to prosecute.
(4) This section does not alter the law on tolling of the
statute of limitations nor does it apply to causes of action that
have accrued before this Article becomes effective. [1993 c
230 § 2A-506.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-507
62A.2A-507 Proof of market rent: Time and place.
(1) Damages based on market rent (RCW 62A.2A-519 or
62A.2A-528) are determined according to the rent for the use
of the goods concerned for a lease term identical to the
remaining lease term of the original lease agreement and prevailing at the times specified in RCW 62A.2A-519 and
62A.2A-528.
(2) If evidence of rent for the use of the goods concerned
for a lease term identical to the remaining lease term of the
original lease agreement and prevailing at the times or places
described in this Article is not readily available, the rent prevailing within any reasonable time before or after the time
described or at any other place or for a different lease term
which in commercial judgment or under usage of trade would
serve as a reasonable substitute for the one described may be
used, making any proper allowance for the difference, including the cost of transporting the goods to or from the other
place.
(3) Evidence of a relevant rent prevailing at a time or
place or for a lease term other than the one described in this
Article offered by one party is not admissible unless and until
he or she has given the other party notice the court finds sufficient to prevent unfair surprise.
(4) If the prevailing rent or value of any goods regularly
leased in any established market is in issue, reports in official
publications or trade journals or in newspapers or periodicals
of general circulation published as the reports of that market
are admissible in evidence. The circumstances of the preparation of the report may be shown to affect its weight but not its
admissibility. [1993 c 230 § 2A-507.]
Effective date—1993 c 230: See RCW 62A.11-110.
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-508
62A.2A-506
62A.2A-506 Statute of limitations. (1) An action for
default under a lease contract, including breach of warranty
or indemnity, must be commenced within four years after the
cause of action accrued. By the original lease contract the
parties may reduce the period of limitation to not less than
one year.
(2) A cause of action for default accrues when the act or
omission on which the default or breach of warranty is based
is or should have been discovered by the aggrieved party, or
when the default occurs, whichever is later. A cause of action
for indemnity accrues when the act or omission on which the
claim for indemnity is based is or should have been discovered by the indemnified party, whichever is later.
(3) If an action commenced within the time limited by
subsection (1) of this section is so terminated as to leave
available a remedy by another action for the same default or
(2004 Ed.)
62A.2A-508 Lessee's remedies. (1) If a lessor fails to
deliver the goods in conformity to the lease contract (RCW
62A.2A-509) or repudiates the lease contract (RCW 62A.2A402), or a lessee rightfully rejects the goods (RCW 62A.2A509) or justifiably revokes acceptance of the goods (RCW
62A.2A-517), then with respect to any goods involved, and
with respect to all of the goods if under an installment lease
contract the value of the whole lease contract is substantially
impaired (RCW 62A.2A-510), the lessor is in default under
the lease contract and the lessee may:
(a) Cancel the lease contract (RCW 62A.2A-505(1));
(b) Recover so much of the rent and security as has been
paid and which is just under the circumstances;
(c) Cover and recover damages as to all goods affected
whether or not they have been identified to the lease contract
(RCW 62A.2A-518 and 62A.2A-520), or recover damages
for nondelivery (RCW 62A.2A-519 and 62A.2A-520);
[Title 62A RCW—page 39]
62A.2A-509
Title 62A RCW: Uniform Commercial Code
(d) Exercise any other rights or pursue any other remedies provided in the lease contract.
(2) If a lessor fails to deliver the goods in conformity to
the lease contract or repudiates the lease contract, the lessee
may also:
(a) If the goods have been identified, recover them
(RCW 62A.2A-522); or
(b) In a proper case, obtain specific performance or
replevy the goods (RCW 62A.2A-521).
(3) If a lessor is otherwise in default under a lease contract, the lessee may exercise the rights and pursue the remedies provided in the lease contract, which may include a right
to cancel the lease, and in RCW 62A.2A-519(3).
(4) If a lessor has breached a warranty, whether express
or implied, the lessee may recover damages (RCW 62A.2A519(4)).
(5) On rightful rejection or justifiable revocation of
acceptance, a lessee has a security interest in goods in the lessee's possession or control for any rent and security that has
been paid and any expenses reasonably incurred in their
inspection, receipt, transportation, and care and custody and
may hold those goods and dispose of them in good faith and
in a commercially reasonable manner, subject to RCW
62A.2A-527(5).
(6) Subject to the provisions of RCW 62A.2A-407, a lessee, on notifying the lessor of the lessee's intention to do so,
may deduct all or any part of the damages resulting from any
default under the lease contract from any part of the rent still
due under the same lease contract. [1993 c 230 § 2A-508.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-509
62A.2A-509 Lessee's rights on improper delivery;
rightful rejection. (1) Subject to the provisions of RCW
62A.2A-510 on default in installment lease contracts, if the
goods or the tender or delivery fail in any respect to conform
to the lease contract, the lessee may reject or accept the goods
or accept any commercial unit or units and reject the rest of
the goods.
(2) Rejection of goods is ineffective unless it is within a
reasonable time after tender or delivery of the goods and the
lessee seasonably notifies the lessor. [1993 c 230 § 2A-509.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-510
62A.2A-510 Installment lease contracts: Rejection
and default. (1) Under an installment lease contract a lessee
may reject any delivery that is nonconforming if the nonconformity substantially impairs the value of that delivery and
cannot be cured or the nonconformity is a defect in the
required documents; but if the nonconformity does not fall
within subsection (2) of this section and the lessor or the supplier gives adequate assurance of its cure, the lessee must
accept that delivery.
(2) Whenever nonconformity or default with respect to
one or more deliveries substantially impairs the value of the
installment lease contract as a whole there is a default with
respect to the whole. But, the aggrieved party reinstates the
installment lease contract as a whole if the aggrieved party
accepts a nonconforming delivery without seasonably notifying of cancellation or brings an action with respect only to
[Title 62A RCW—page 40]
past deliveries or demands performance as to future deliveries. [1993 c 230 § 2A-510.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-511
62A.2A-511 Merchant lessee's duties as to rightfully
rejected goods. (1) Subject to any security interest of a lessee (RCW 62A.2A-508(5)), if a lessor or a supplier has no
agent or place of business at the market of rejection, a merchant lessee, after rejection of goods in his or her possession
or control, shall follow any reasonable instructions received
from the lessor or the supplier with respect to the goods. In
the absence of those instructions, a merchant lessee shall
make reasonable efforts to sell, lease, or otherwise dispose of
the goods for the lessor's account if they threaten to decline in
value speedily. Instructions are not reasonable if on demand
indemnity for expenses is not forthcoming.
(2) If a merchant lessee, under subsection (1) of this section, or any other lessee (RCW 62A.2A-512) disposes of
goods, he or she is entitled to reimbursement either from the
lessor or the supplier or out of the proceeds for reasonable
expenses of caring for and disposing of the goods and, if the
expenses include no disposition commission, to such commission as is usual in the trade, or if there is none, to a reasonable sum not exceeding ten percent of the gross proceeds.
(3) In complying with this section or RCW 62A.2A-512,
the lessee is held only to good faith. Good faith conduct hereunder is neither acceptance or conversion nor the basis of an
action for damages.
(4) A purchaser who purchases in good faith from a lessee pursuant to this section or RCW 62A.2A-512 takes the
goods free of any rights of the lessor and the supplier even
though the lessee fails to comply with one or more of the
requirements of this Article. [1993 c 230 § 2A-511.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-512
62A.2A-512 Lessee's duties as to rightfully rejected
goods. (1) Except as otherwise provided with respect to
goods that threaten to decline in value speedily (RCW
62A.2A-511) and subject to any security interest of a lessee
(RCW 62A.2A-508(5)):
(a) The lessee, after rejection of goods in the lessee's possession, shall hold them with reasonable care at the lessor's or
the supplier's disposition for a reasonable time after the lessee's seasonable notification of rejection;
(b) If the lessor or the supplier gives no instructions
within a reasonable time after notification of rejection, the
lessee may store the rejected goods for the lessor's or the supplier's account or ship them to the lessor or the supplier or
dispose of them for the lessor's or the supplier's account with
reimbursement in the manner provided in RCW 62A.2A-511;
but
(c) The lessee has no further obligations with regard to
goods rightfully rejected.
(2) Action by the lessee pursuant to subsection (1) of this
section is not acceptance or conversion. [1993 c 230 § 2A512.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-513
62A.2A-513 Cure by lessor of improper tender or
delivery; replacement. (1) If any tender or delivery by the
(2004 Ed.)
Leases
lessor or the supplier is rejected because nonconforming and
the time for performance has not yet expired, the lessor or the
supplier may seasonably notify the lessee of the lessor's or the
supplier's intention to cure and may then make a conforming
delivery within the time provided in the lease contract.
(2) If the lessee rejects a nonconforming tender that the
lessor or the supplier had reasonable grounds to believe
would be acceptable with or without money allowance, the
lessor or the supplier may have a further reasonable time to
substitute a conforming tender if he or she seasonably notifies the lessee. [1993 c 230 § 2A-513.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-514
62A.2A-514 Waiver of lessee's objections. (1) In
rejecting goods, a lessee's failure to state a particular defect
that is ascertainable by reasonable inspection precludes the
lessee from relying on the defect to justify rejection or to
establish default:
(a) If, stated seasonably, the lessor or the supplier could
have cured it (RCW 62A.2A-513); or
(b) Between merchants if the lessor or the supplier after
rejection has made a request in writing for a full and final
written statement of all defects on which the lessee proposes
to rely.
(2) A lessee's failure to reserve rights when paying rent
or other consideration against documents precludes recovery
of the payment for defects apparent on the face of the documents. [1993 c 230 § 2A-514.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-515
62A.2A-515 Acceptance of goods. (1) Acceptance of
goods occurs after the lessee has had a reasonable opportunity to inspect the goods and:
(a) The lessee signifies or acts with respect to the goods
in a manner that signifies to the lessor or the supplier that the
goods are conforming or that the lessee will take or retain
them in spite of their nonconformity; or
(b) The lessee fails to make an effective rejection of the
goods (RCW 62A.2A-509(2)).
(2) Acceptance of a part of any commercial unit is acceptance of that entire unit. [1993 c 230 § 2A-515.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-516
62A.2A-516 Effect of acceptance of goods; notice of
default; burden of establishing default after acceptance;
notice of claim or litigation to person answerable over.
(1) A lessee must pay rent for any goods accepted in accordance with the lease contract, with due allowance for goods
rightfully rejected or not delivered.
(2) A lessee's acceptance of goods precludes rejection of
the goods accepted. In the case of a finance lease, if made
with knowledge of a nonconformity, acceptance cannot be
revoked because of it. In any other case, if made with knowledge of a nonconformity, acceptance cannot be revoked
because of it unless the acceptance was on the reasonable
assumption that the nonconformity would be seasonably
cured. Acceptance does not of itself impair any other remedy
provided by this Article or the lease agreement for nonconformity.
(3) If a tender has been accepted:
(2004 Ed.)
62A.2A-517
(a) Within a reasonable time after the lessee discovers or
should have discovered any default, the lessee shall notify the
lessor and the supplier, if any, or be barred from any remedy
against the party not notified;
(b) Except in the case of a consumer lease, within a reasonable time after the lessee receives notice of litigation for
infringement or the like (RCW 62A.2A-211) the lessee shall
notify the lessor or be barred from any remedy over for liability established by the litigation; and
(c) The burden is on the lessee to establish any default.
(4) If a lessee is sued for breach of a warranty or other
obligation for which a lessor or a supplier is answerable over
the following apply:
(a) The lessee may give the lessor or the supplier, or
both, written notice of the litigation. If the notice states that
the person notified may come in and defend and that if the
person notified does not do so that person will be bound in
any action against that person by the lessee by any determination of fact common to the two litigations, then unless the
person notified after seasonable receipt of the notice does
come in and defend that person is so bound.
(b) The lessor or the supplier may demand in writing that
the lessee turn over control of the litigation including settlement if the claim is one for infringement or the like (RCW
62A.2A-211) or else be barred from any remedy over. If the
demand states that the lessor or the supplier agrees to bear all
expense and to satisfy any adverse judgment, then unless the
lessee after seasonable receipt of the demand does turn over
control the lessee is so barred.
(5) Subsections (3) and (4) of this section apply to any
obligation of a lessee to hold the lessor or the supplier harmless against infringement or the like (RCW 62A.2A-211).
[1993 c 230 § 2A-516.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-517
62A.2A-517 Revocation of acceptance of goods. (1) A
lessee may revoke acceptance of a lot or commercial unit
whose nonconformity substantially impairs its value to the
lessee if the lessee has accepted it:
(a) Except in the case of a finance lease, on the reasonable assumption that its nonconformity would be cured and it
has not been seasonably cured; or
(b) Without discovery of the nonconformity if the lessee's acceptance was reasonably induced either by the lessor's
assurances or, except in the case of a finance lease, by the difficulty of discovery before acceptance.
(2) Except in the case of a finance lease, a lessee may
revoke acceptance of a lot or commercial unit if the lessor
defaults under the lease contract and the default substantially
impairs the value of that lot or commercial unit to the lessee.
(3) If the lease agreement so provides, the lessee may
revoke acceptance of a lot or commercial unit because of
other defaults by the lessor.
(4) Revocation of acceptance must occur within a reasonable time after the lessee discovers or should have discovered the ground for it and before any substantial change in
condition of the goods which is not caused by the nonconformity. Revocation is not effective until the lessee notifies the
lessor.
[Title 62A RCW—page 41]
62A.2A-518
Title 62A RCW: Uniform Commercial Code
(5) A lessee who so revokes has the same rights and
duties with regard to the goods involved as if the lessee had
rejected them. [1993 c 230 § 2A-517.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-518
62A.2A-518 Cover; substitute goods. (1) After a
default by a lessor under the lease contract of the type
described in (RCW 62A.2A-508(1)), or, if agreed, after other
default by the lessor, the lessee may cover by making any
purchase or lease of or contract to purchase or lease goods in
substitution for those due from the lessor.
(2) Except as otherwise provided with respect to damages liquidated in the lease agreement (RCW 62A.2A-504) or
otherwise determined pursuant to agreement of the parties
(RCW 62A.1-102(3) and 62A.2A-503), if a lessee's cover is
by a lease agreement substantially similar to the original
lease agreement and the new lease agreement is made in good
faith and in a commercially reasonable manner, the lessee
may recover from the lessor as damages (i) the present value,
as of the date of the commencement of the term of the new
lease agreement, of the rent under the new lease applicable to
that period of the new lease term which is comparable to the
then remaining term of the original lease agreement minus
the present value as of the same date of the total rent for the
then remaining lease term of the original lease agreement,
and (ii) any incidental or consequential damages, less
expenses saved in consequence of the lessor's default.
(3) If a lessee's cover is by lease agreement that for any
reason does not qualify for treatment under subsection (2) of
this section, or is by purchase or otherwise, the lessee may
recover from the lessor as if the lessee had elected not to
cover and RCW 62A.2A-519 governs. [1993 c 230 § 2A518.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-519
62A.2A-519 Lessee's damages for nondelivery, repudiation, default, and breach of warranty in regard to
accepted goods. (1) Except as otherwise provided with
respect to damages liquidated in the lease agreement (RCW
62A.2A-504) or otherwise determined pursuant to agreement
of the parties (RCW 62A.1-102(3)), if a lessee elects not to
cover or a lessee elects to cover and the cover is by lease
agreement that for any reason does not qualify for treatment
under RCW 62A.2A-518(2), or is by purchase or otherwise,
the measure of damages for nondelivery or repudiation by the
lessor or for rejection or revocation of acceptance by the lessee is the present value, as of the date of the default, of the
then market rent minus the present value as of the same date
of the original rent, computed for the remaining lease term of
the original lease agreement, together with incidental and
consequential damages, less expenses saved in consequence
of the lessor's default.
(2) Market rent is to be determined as of the place for
tender or, in cases of rejection after arrival or revocation of
acceptance, as of the place of arrival.
(3) Except as otherwise agreed, if the lessee has accepted
goods and given notification (RCW 62A.2A-516(3)), the
measure of damages for nonconforming tender or delivery or
other default by a lessor is the loss resulting in the ordinary
course of events from the lessor's default as determined in
[Title 62A RCW—page 42]
any manner that is reasonable together with incidental and
consequential damages, less expenses saved in consequence
of the lessor's default.
(4) Except as otherwise agreed, the measure of damages
for breach of warranty is the present value at the time and
place of acceptance of the difference between the value of the
use of the goods accepted and the value if they had been as
warranted for the lease term, unless special circumstances
show proximate damages of a different amount, together with
incidental and consequential damages, less expenses saved in
consequence of the lessor's default or breach of warranty.
[1993 c 230 § 2A-519.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-520
62A.2A-520 Lessee's incidental and consequential
damages. (1) Incidental damages resulting from a lessor's
default include expenses reasonably incurred in inspection,
receipt, transportation, and care and custody of goods rightfully rejected or goods the acceptance of which is justifiably
revoked, any commercially reasonable charges, expenses or
commissions in connection with effecting cover, and any
other reasonable expense incident to the default.
(2) Consequential damages resulting from a lessor's
default include:
(a) Any loss resulting from general or particular requirements and needs of which the lessor at the time of contracting
had reason to know and which could not reasonably be prevented by cover or otherwise; and
(b) Injury to person or property proximately resulting
from any breach of warranty. [1993 c 230 § 2A-520.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-521
62A.2A-521 Lessee's right to specific performance or
replevin. (1) Specific performance may be decreed if the
goods are unique or in other proper circumstances.
(2) A decree for specific performance may include any
terms and conditions as to payment of the rent, damages, or
other relief that the court deems just.
(3) A lessee has a right of replevin, detinue, sequestration, claim and delivery, or the like for goods identified to the
lease contract if after reasonable effort the lessee is unable to
effect cover for those goods or the circumstances reasonably
indicate that the effort will be unavailing. [1993 c 230 § 2A521.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-522
62A.2A-522 Lessee's right to goods on lessor's insolvency. (1) Subject to subsection (2) of this section and even
though the goods have not been shipped, a lessee who has
paid a part or all of the rent and security for goods identified
to a lease contract (RCW 62A.2A-217) on making and keeping good a tender of any unpaid portion of the rent and security due under the lease contract may recover the goods identified from the lessor if the lessor becomes insolvent within
ten days after receipt of the first installment of rent and security.
(2) A lessee acquires the right to recover goods identified
to a lease contract only if they conform to the lease contract.
[1993 c 230 § 2A-522.]
Effective date—1993 c 230: See RCW 62A.11-110.
(2004 Ed.)
Leases
62A.2A-523
62A.2A-523 Lessor's remedies. (1) If a lessee wrongfully rejects or revokes acceptance of goods or fails to make
a payment when due or repudiates with respect to a part or the
whole, then, with respect to any goods involved, and with
respect to all of the goods if under an installment lease contract the value of the whole lease contract is substantially
impaired (RCW 62A.2A-510), the lessee is in default under
the lease contract and the lessor may:
(a) Cancel the lease contract (RCW 62A.2A-505(1));
(b) Proceed respecting goods not identified to the lease
contract (RCW 62A.2A-524);
(c) Withhold delivery of the goods and take possession
of goods previously delivered (RCW 62A.2A-525);
(d) Stop delivery of the goods by any bailee (RCW
62A.2A-526);
(e) Dispose of the goods and recover damages (RCW
62A.2A-527), or retain the goods and recover damages
(RCW 62A.2A-528), or in a proper case recover rent (RCW
62A.2A-529);
(f) Exercise any other rights or pursue any other remedies provided in the lease contract.
(2) If a lessor does not fully exercise a right or obtain a
remedy to which the lessor is entitled under subsection (1) of
this section, the lessor may recover the loss resulting in the
ordinary course of events from the lessee's default as determined in any reasonable manner, together with incidental
damages, less expenses saved in consequence of the lessee's
default.
(3) If a lessee is otherwise in default under a lease contract, the lessor may exercise the rights and pursue the remedies provided in the lease contract, which may include a right
to cancel the lease. In addition, unless otherwise provided in
the lease contract:
(a) If the default substantially impairs the value of the
lease contract to the lessor, the lessor may exercise the rights
and pursue the remedies provided in subsection (1) or (2) of
this section; or
(b) If the default does not substantially impair the value
of the lease contract to the lessor, the lessor may recover as
provided in subsection (2) of this section. [1993 c 230 § 2A523.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-524
62A.2A-524 Lessor's right to identify goods to lease
contract. (1) After default by the lessee under the lease contract of the type described in RCW 62A.2A-523 (1) or (3)(a)
or, if agreed, after other default by the lessee, the lessor may:
(a) Identify to the lease contract conforming goods not
already identified if at the time the lessor learned of the
default they were in the lessor's or the supplier's possession or
control; and
(b) Dispose of goods (RCW 62A.2A-527(1)) that
demonstrably have been intended for the particular lease contract even though those goods are unfinished.
(2) If the goods are unfinished, in the exercise of reasonable commercial judgment for the purposes of avoiding loss
and of effective realization, an aggrieved lessor or the supplier may either complete manufacture and wholly identify
the goods to the lease contract or cease manufacture and
lease, sell, or otherwise dispose of the goods for scrap or sal(2004 Ed.)
62A.2A-527
vage value or proceed in any other reasonable manner. [1993
c 230 § 2A-524.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-525
62A.2A-525 Lessor's right to possession of goods. (1)
If a lessor discovers the lessee to be insolvent, the lessor may
refuse to deliver the goods.
(2) After a default by the lessee under the lease contract
of the type described in RCW 62A.2A-523 (1) or (3)(a) or, if
agreed, after other default by the lessee, the lessor has the
right to take possession of the goods. If the lease contract so
provides, the lessor may require the lessee to assemble the
goods and make them available to the lessor at a place to be
designated by the lessor which is reasonably convenient to
both parties. Without removal, the lessor may render unusable any goods employed in trade or business, and may dispose of goods on the lessee's premises (RCW 62A.2A-527).
(3) The lessor may proceed under subsection (2) of this
section without judicial process if it can be done without
breach of the peace or the lessor may proceed by action.
[1993 c 230 § 2A-525.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-526
62A.2A-526 Lessor's stoppage of delivery in transit
or otherwise. (1) A lessor may stop delivery of goods in the
possession of a carrier or other bailee if the lessor discovers
the lessee to be insolvent and may stop delivery of carload,
truckload, planeload, or larger shipments of express or freight
if the lessee repudiates or fails to make a payment due before
delivery, whether for rent, security, or otherwise under the
lease contract, or for any other reason the lessor has a right to
withhold or take possession of the goods.
(2) In pursuing its remedies under subsection (1) of this
section, the lessor may stop delivery until:
(a) Receipt of the goods by the lessee;
(b) Acknowledgment to the lessee by any bailee of the
goods, except a carrier, that the bailee holds the goods for the
lessee; or
(c) Such an acknowledgment to the lessee by a carrier
via reshipment or as warehouseman.
(3)(a) To stop delivery, a lessor shall so notify as to
enable the bailee by reasonable diligence to prevent delivery
of the goods.
(b) After notification, the bailee shall hold and deliver
the goods according to the directions of the lessor, but the lessor is liable to the bailee for any ensuing charges or damages.
(c) A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a notification to stop received from
a person other than the consignor. [1993 c 230 § 2A-526.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-527
62A.2A-527 Lessor's rights to dispose of goods. (1)
After a default by a lessee under the lease contract of the type
described in RCW 62A.2A-523 (1) or (3)(a) or after the lessor refuses to deliver or takes possession of goods (RCW
62A.2A-525 or 62A.2A-526), or, if agreed, after other default
by a lessee, the lessor may dispose of the goods concerned or
the undelivered balance thereof by lease, sale, or otherwise.
(2) Except as otherwise provided with respect to damages liquidated in the lease agreement (RCW 62A.2A-504) or
[Title 62A RCW—page 43]
62A.2A-528
Title 62A RCW: Uniform Commercial Code
otherwise determined pursuant to agreement of the parties
(RCW 62A.1-102(3) and 62A.2A-503), if the disposition is
by lease agreement substantially similar to the original lease
agreement and the new lease agreement is made in good faith
and in a commercially reasonable manner, the lessor may
recover from the lessee as damages (i) accrued and unpaid
rent as of the date of the commencement of the term of the
new lease agreement, (ii) the present value, as of the same
date, of the total rent for the then remaining lease term of the
original lease agreement minus the present value, as of the
same date, of the rent under the new lease agreement applicable to that period of the new lease term which is comparable
to the then remaining term of the original lease agreement,
and (iii) any incidental damages allowed under RCW
62A.2A-530, less expenses saved in consequence of the lessee's default.
(3) If the lessor's disposition is by lease agreement that
for any reason does not qualify for treatment under subsection (2) of this section, or is by sale or otherwise, the lessor
may recover from the lessee as if the lessor had elected not to
dispose of the goods and RCW 62A.2A-528 governs.
(4) A subsequent buyer or lessee who buys or leases
from the lessor in good faith for value as a result of a disposition under this section takes the goods free of the original
lease contract and any rights of the original lessee even
though the lessor fails to comply with one or more of the
requirements of this Article.
(5) The lessor is not accountable to the lessee for any
profit made on any disposition. A lessee who has rightfully
rejected or justifiably revoked acceptance shall account to the
lessor for any excess over the amount of the lessee's security
interest (RCW 62A.2A-508(5)). [1993 c 230 § 2A-527.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-528
62A.2A-528 Lessor's damages for nonacceptance,
failure to pay, repudiation, or other default. (1) Except as
otherwise provided with respect to damages liquidated in the
lease agreement (RCW 62A.2A-504) or otherwise determined pursuant to agreement of the parties (RCW 62A.1102(3) and 62A.2A-503), if a lessor elects to retain the goods
or a lessor elects to dispose of the goods and the disposition
is by lease agreement that for any reason does not qualify for
treatment under RCW 62A.2A-527(2), or is by sale or otherwise, the lessor may recover from the lessee as damages for a
default of the type described in RCW 62A.2A-523 (1) or
(3)(a), or, if agreed, for other default of the lessee, (i) accrued
and unpaid rent as of the date of default if the lessee has never
taken possession of the goods, or, if the lessee has taken possession of the goods, as of the date the lessor repossesses the
goods or an earlier date on which the lessee makes a tender of
the goods to the lessor, (ii) the present value as of the date
determined under subsection (1)(i) of this section of the total
rent for the then remaining lease term of the original lease
agreement minus the present value as of the same date of the
market rent at the place where the goods are located computed for the same lease term, and (iii) any incidental damages allowed under RCW 62A.2A-530, less expenses saved
in consequence of the lessee's default.
(2) If the measure of damages provided in subsection (1)
of this section is inadequate to put a lessor in as good a posi[Title 62A RCW—page 44]
tion as performance would have, the measure of damages is
the present value of the profit, including reasonable overhead, the lessor would have made from full performance by
the lessee, together with any incidental damages allowed
under RCW 62A.2A-530, due allowance for costs reasonably
incurred and due credit for payments or proceeds of disposition. [1993 c 230 § 2A-528.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-529
62A.2A-529 Lessor's action for the rent. (1) After
default by the lessee under the lease contract of the type
described in RCW 62A.2A-523 (1) or (3)(a) or, if agreed,
after other default by the lessee, if the lessor complies with
subsection (2) of this section, the lessor may recover from the
lessee as damages:
(a) For goods accepted by the lessee and not repossessed
by or tendered to the lessor, and for conforming goods lost or
damaged within a commercially reasonable time after risk of
loss passes to the lessee (RCW 62A.2A-219), (i) accrued and
unpaid rent as of the date of entry of judgment in favor of the
lessor, (ii) the present value as of the same date of the rent for
the then remaining lease term of the lease agreement, and (iii)
any incidental damages allowed under RCW 62A.2A-530,
less expenses saved in consequence of the lessee's default;
and
(b) For goods identified to the lease contract if the lessor
is unable after reasonable effort to dispose of them at a reasonable price or the circumstances reasonably indicate that
effort will be unavailing, (i) accrued and unpaid rent as of the
date of entry of judgment in favor of the lessor, (ii) the
present value as of the same date of the rent for the then
remaining lease term of the lease agreement, and (iii) any
incidental damages allowed under RCW 62A.2A-530, less
expenses saved in consequence of the lessee's default.
(2) Except as provided in subsection (3) of this section,
the lessor shall hold for the lessee for the remaining lease
term of the lease agreement any goods that have been identified to the lease contract and are in the lessor's control.
(3) The lessor may dispose of the goods at any time
before collection of the judgment for damages obtained pursuant to subsection (1) of this section. If the disposition is
before the end of the remaining lease term of the lease agreement, the lessor's recovery against the lessee for damages is
governed by RCW 62A.2A-527 or 62A.2A-528, and the lessor will cause an appropriate credit to be provided against a
judgment for damages to the extent that the amount of the
judgment exceeds the recovery available pursuant to RCW
62A.2A-527 or 62A.2A-528.
(4) Payment of the judgment for damages obtained pursuant to subsection (1) of this section entitles the lessee to the
use and possession of the goods not then disposed of for the
remaining lease term of and in accordance with the lease
agreement.
(5) After default by the lessee under the lease contract of
the type described in RCW 62A.2A-523 (1) or (3)(a) or, if
agreed, after other default by the lessee, a lessor who is held
not entitled to rent under this section must nevertheless be
awarded damages for nonacceptance under RCW 62A.2A527 and 62A.2A-528. [1993 c 230 § 2A-529.]
Effective date—1993 c 230: See RCW 62A.11-110.
(2004 Ed.)
Negotiable Instruments
PART 2
NEGOTIATION, TRANSFER, AND INDORSEMENT
62A.2A-530
62A.2A-530 Lessor's incidental damages. Incidental
damages to an aggrieved lessor include any commercially
reasonable charges, expenses, or commissions incurred in
stopping delivery, in the transportation, care and custody of
goods after the lessee's default, in connection with return or
disposition of the goods, or otherwise resulting from the
default. [1993 c 230 § 2A-530.]
Effective date—1993 c 230: See RCW 62A.11-110.
62A.3-201
62A.3-202
62A.3-203
62A.3-204
62A.3-205
62A.3-206
62A.3-207
Effective date—1993 c 230: See RCW 62A.11-110.
62A.2A-532
62A.2A-532 Lessor's rights to residual interest. In
addition to any other recovery permitted by this Article or
other law, the lessor may recover from the lessee an amount
that will fully compensate the lessor for any loss of or damage to the lessor's residual interest in the goods caused by the
default of the lessee. [1993 c 230 § 2A-532.]
Effective date—1993 c 230: See RCW 62A.11-110.
Article 3
Sections
PART 1
GENERAL PROVISIONS AND DEFINITIONS
62A.3-101
62A.3-102
62A.3-103
62A.3-104
62A.3-105
62A.3-106
62A.3-107
62A.3-108
62A.3-109
62A.3-110
62A.3-111
62A.3-112
62A.3-113
62A.3-114
62A.3-115
62A.3-116
62A.3-117
62A.3-118
62A.3-119
(2004 Ed.)
62A.3-301
62A.3-302
62A.3-303
62A.3-304
62A.3-305
62A.3-306
62A.3-307
62A.3-308
62A.3-309
62A.3-310
62A.3-311
62A.3-312
Short title.
Subject matter.
Definitions.
Negotiable instrument.
Issue of instrument.
Unconditional promise or order.
Instrument payable in foreign money.
Payable on demand or at definite time.
Payable to bearer or to order.
Identification of person to whom instrument is payable.
Place of payment.
Interest.
Date of instrument.
Contradictory terms of instrument.
Incomplete instrument.
Joint and several liability; contribution.
Other agreements affecting instrument.
Statute of limitations.
Notice of right to defend action.
Person entitled to enforce instrument.
Holder in due course.
Value and consideration.
Overdue instrument.
Defenses and claims in recoupment.
Claims to an instrument.
Notice of breach of fiduciary duty.
Proof of signatures and status as holder in due course.
Enforcement of lost, destroyed, or stolen instrument.
Effect of instrument on obligation for which taken.
Accord and satisfaction by use of instrument.
Lost, destroyed, or stolen cashier's check, teller's check, or certified check.
PART 4
LIABILITY OF PARTIES
62A.3-401
62A.3-402
62A.3-403
62A.3-404
62A.3-405
62A.3-406
62A.3-407
62A.3-408
62A.3-409
62A.3-410
62A.3-411
62A.3-412
62A.3-413
62A.3-414
62A.3-415
62A.3-416
62A.3-417
62A.3-418
62A.3-419
62A.3-420
Article 3
NEGOTIABLE INSTRUMENTS
(Formerly: Commercial paper)
Negotiation.
Negotiation subject to rescission.
Transfer of instrument; rights acquired by transfer.
Indorsement.
Special indorsement; blank indorsement; anomalous indorsement.
Restrictive indorsement.
Reacquisition.
PART 3
ENFORCEMENT OF INSTRUMENTS
62A.2A-531
62A.2A-531 Standing to sue third parties for injury
to goods. (1) If a third party so deals with goods that have
been identified to a lease contract as to cause actionable
injury to a party to the lease contract (a) the lessor has a right
of action against the third party, and (b) the lessee also has a
right of action against the third party if the lessee:
(i) Has a security interest in the goods;
(ii) Has an insurable interest in the goods; or
(iii) Bears the risk of loss under the lease contract or has
since the injury assumed that risk as against the lessor and the
goods have been converted or destroyed.
(2) If at the time of the injury the party plaintiff did not
bear the risk of loss as against the other party to the lease contract and there is no arrangement between them for disposition of the recovery, his or her suit or settlement, subject to
his or her own interest, is as a fiduciary for the other party to
the lease contract.
(3) Either party with the consent of the other may sue for
the benefit of whom it may concern. [1993 c 230 § 2A-531.]
62A.3-101
Signature.
Signature by representative.
Unauthorized signature.
Impostors; fictitious payees.
Employer's responsibility for fraudulent indorsement by
employee.
Negligence contributing to forged signature or alteration of
instrument.
Alteration.
Drawee not liable on unaccepted draft.
Acceptance of draft; certified check.
Acceptance varying draft.
Refusal to pay cashier's checks, teller's checks, and certified
checks.
Obligation of issuer of note or cashier's check.
Obligation of acceptor.
Obligation of drawer.
Obligation of indorser.
Transfer warranties.
Presentment warranties.
Payment or acceptance by mistake.
Instruments signed for accommodation.
Conversion of instrument.
PART 5
DISHONOR
62A.3-501
62A.3-502
62A.3-503
62A.3-504
62A.3-505
62A.3-512
62A.3-515
62A.3-520
62A.3-522
62A.3-525
Presentment.
Dishonor.
Notice of dishonor.
Excused presentment and notice of dishonor.
Evidence of dishonor.
Credit cards—As identification—In lieu of deposit.
Checks dishonored by nonacceptance or nonpayment; liability
for interest; rate; collection costs and attorneys' fees; satisfaction of claim.
Statutory form for notice of dishonor.
Notice of dishonor—Affidavit of service by mail.
Consequences for failing to comply with requirements.
PART 6
DISCHARGE AND PAYMENT
62A.3-601
62A.3-602
62A.3-603
62A.3-604
62A.3-605
Discharge and effect of discharge.
Payment.
Tender of payment.
Discharge by cancellation or renunciation.
Discharge of indorsers and accommodation parties.
62A.3-101
62A.3-101 Short title. This Article may be cited as
Uniform Commercial Code—Negotiable Instruments. [1993
c 229 § 3; 1965 ex.s. c 157 § 3-101.]
[Title 62A RCW—page 45]
62A.3-102
Title 62A RCW: Uniform Commercial Code
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-102
62A.3-102 Subject matter. (a) This Article applies to
negotiable instruments. It does not apply to money, to payment orders governed by Article 4A, or to securities governed by Article 8.
(b) If there is conflict between this Article and Article 4
or 9A, Articles 4 and 9A govern.
(c) Regulations of the Board of Governors of the Federal
Reserve System and operating circulars of the Federal
Reserve Banks supersede any inconsistent provision of this
Article to the extent of the inconsistency. [2001 c 32 § 12;
1993 c 229 § 4; 1965 ex.s. c 157 § 3-102. Cf. former RCW
sections: (i) RCW 62.01.001(5); 1955 c 35 § 62.01.001;
prior: 1899 c 149 § 1; RRS § 3392. (ii) RCW 62.01.128;
1955 c 35 § 62.01.128; prior: 1899 c 149 § 128; RRS § 3518.
(iii) RCW 62.01.191; 1955 c 35 § 62.01.191; prior: 1899 c
149 § 191; RRS § 3581.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-103
62A.3-103 Definitions. (a) In this Article:
(1) "Acceptor" means a drawee who has accepted a draft.
(2) "Drawee" means a person ordered in a draft to make
payment.
(3) "Drawer" means a person who signs or is identified in
a draft as a person ordering payment.
(4) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(5) "Maker" means a person who signs or is identified in
a note as a person undertaking to pay.
(6) "Order" means a written instruction to pay money
signed by the person giving the instruction. The instruction
may be addressed to any person, including the person giving
the instruction, or to one or more persons jointly or in the
alternative but not in succession. An authorization to pay is
not an order unless the person authorized to pay is also
instructed to pay.
(7) "Ordinary care" in the case of a person engaged in
business means observance of reasonable commercial standards, prevailing in the area in which the person is located,
with respect to the business in which the person is engaged.
In the case of a bank that takes an instrument for processing
for collection or payment by automated means, reasonable
commercial standards do not require the bank to examine the
instrument if the failure to examine does not violate the
bank's prescribed procedures and the bank's procedures do
not vary unreasonably from general banking usage not disapproved by this Article or Article 4.
(8) "Party" means a party to an instrument.
(9) "Promise" means a written undertaking to pay money
signed by the person undertaking to pay. An acknowledgment of an obligation by the obligor is not a promise unless
the obligor also undertakes to pay the obligation.
(10) "Prove" with respect to a fact means to meet the burden of establishing the fact (RCW 62A.1-201(8)).
(11) "Remitter" means a person who purchases an instrument from its issuer if the instrument is payable to an identified person other than the purchaser.
[Title 62A RCW—page 46]
(b) Other definitions applying to this Article and the sections in which they appear are:
"Acceptance"
RCW 62A.3-409
"Accommodated party"
RCW 62A.3-419
"Accommodation party"
RCW 62A.3-419
"Alteration"
RCW 62A.3-407
"Anomalous indorsement"
RCW 62A.3-205
"Blank indorsement"
RCW 62A.3-205
"Cashier's check"
RCW 62A.3-104
"Certificate of deposit"
RCW 62A.3-104
"Certified check"
RCW 62A.3-409
"Check"
RCW 62A.3-104
"Consideration"
RCW 62A.3-303
"Draft"
RCW 62A.3-104
"Holder in due course"
RCW 62A.3-302
"Incomplete instrument"
RCW 62A.3-115
"Indorsement"
RCW 62A.3-204
"Indorser"
RCW 62A.3-204
"Instrument"
RCW 62A.3-104
"Issue"
RCW 62A.3-105
"Issuer"
RCW 62A.3-105
"Negotiable instrument"
RCW 62A.3-104
"Negotiation"
RCW 62A.3-201
"Note"
RCW 62A.3-104
"Payable at a definite time"
RCW 62A.3-108
"Payable on demand"
RCW 62A.3-108
"Payable to bearer"
RCW 62A.3-109
"Payable to order"
RCW 62A.3-109
"Payment"
RCW 62A.3-602
"Person entitled to enforce"
RCW 62A.3-301
"Presentment"
RCW 62A.3-501
"Reacquisition"
RCW 62A.3-207
"Special indorsement"
RCW 62A.3-205
"Teller's check"
RCW 62A.3-104
"Transfer of instrument"
RCW 62A.3-203
"Traveler's check"
RCW 62A.3-104
"Value"
RCW 62A.3-303
(c) The following definitions in other Articles apply to
this Article:
"Bank"
RCW 62A.4-105
"Banking day"
RCW 62A.4-104
"Clearing house"
RCW 62A.4-104
"Collecting bank"
RCW 62A.4-105
"Depositary bank"
RCW 62A.4-105
"Documentary draft"
RCW 62A.4-104
"Intermediary bank"
RCW 62A.4-105
"Item"
RCW 62A.4-104
"Payor bank"
RCW 62A.4-105
"Suspends payments"
RCW 62A.4-104
(d) In addition, Article 1 contains general definitions and
principles of construction and interpretation applicable
throughout this Article. [1993 c 229 § 5; 1965 ex.s. c 157 §
3-103.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-104
62A.3-104 Negotiable instrument. (a) Except as provided in subsections (c) and (d), "negotiable instrument"
means an unconditional promise or order to pay a fixed
amount of money, with or without interest or other charges
described in the promise or order, if it:
(2004 Ed.)
Negotiable Instruments
(1) Is payable to bearer or to order at the time it is issued
or first comes into possession of a holder;
(2) Is payable on demand or at a definite time; and
(3) Does not state any other undertaking or instruction by
the person promising or ordering payment to do any act in
addition to the payment of money, but the promise or order
may contain (i) an undertaking or power to give, maintain, or
protect collateral to secure payment, (ii) an authorization or
power to the holder to confess judgment or realize on or dispose of collateral, or (iii) a waiver of the benefit of any law
intended for the advantage or protection of an obligor.
(b) "Instrument" means a negotiable instrument.
(c) An order that meets all of the requirements of subsection (a), except subsection (a)(1), and otherwise falls within
the definition of "check" in subsection (f) is a negotiable
instrument and a check.
(d) A promise or order other than a check is not an instrument if, at the time it is issued or first comes into possession
of a holder, it contains a conspicuous statement, however
expressed, to the effect that the promise or order is not negotiable or is not an instrument governed by this Article.
(e) An instrument is a "note" if it is a promise and is a
"draft" if it is an order. If an instrument falls within the definition of both "note" and "draft," a person entitled to enforce
the instrument may treat it as either.
(f) "Check" means (i) a draft, other than a documentary
draft, payable on demand and drawn on a bank, or (ii) a cashier's check or teller's check. An instrument may be a check
even though it is described on its face by another term, such
as "money order."
(g) "Cashier's check" means a draft with respect to which
the drawer and drawee are the same bank or branches of the
same bank.
(h) "Teller's check" means a draft drawn by a bank (i) on
another bank, or (ii) payable at or through a bank.
(i) "Traveler's check" means an instrument that (i) is payable on demand, (ii) is drawn on or payable at or through a
bank, (iii) is designated by the term "traveler's check" or by a
substantially similar term, and (iv) requires, as a condition to
payment, a countersignature by a person whose specimen signature appears on the instrument.
(j) "Certificate of deposit" means an instrument containing an acknowledgment by a bank that a sum of money has
been received by the bank and a promise by the bank to repay
the sum of money. A certificate of deposit is a note of the
bank. [1993 c 229 § 6; 1965 ex.s. c 157 § 3-104. Cf. former
RCW sections: RCW 62.01.001, 62.01.005, 62.01.010,
62.01.126, 62.01.184, and 62.01.185; 1955 c 35 §§
62.01.001, 62.01.005, 62.01.010, 62.01.126, 62.01.184, and
62.01.185; prior: 1899 c 149 §§ 1, 5, 10, 126, 184, and 185;
RRS §§ 3392, 3396, 3401, 3516, 3574, and 3575.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-105
62A.3-105 Issue of instrument. (a) "Issue" means the
first delivery of an instrument by the maker or drawer,
whether to a holder or nonholder, for the purpose of giving
rights on the instrument to any person.
(b) An unissued instrument, or an unissued incomplete
instrument that is completed, is binding on the maker or
drawer, but nonissuance is a defense. An instrument that is
(2004 Ed.)
62A.3-107
conditionally issued or is issued for a special purpose is binding on the maker or drawer, but failure of the condition or
special purpose to be fulfilled is a defense.
(c) "Issuer" applies to issued and unissued instruments
and means a maker or drawer of an instrument. [1993 c 229
§ 7; 1965 ex.s. c 157 § 3-105. Cf. former RCW 62.01.003;
1955 c 35 § 62.01.003; prior: 1899 c 149 § 3; RRS § 3394.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-106
62A.3-106 Unconditional promise or order. (a)
Except as provided in this section, for the purposes of RCW
62A.3-104(a), a promise or order is unconditional unless it
states (i) an express condition to payment, (ii) that the promise or order is subject to or governed by another writing, or
(iii) that rights or obligations with respect to the promise or
order are stated in another writing. A reference to another
writing does not of itself make the promise or order conditional.
(b) A promise or order is not made conditional (i) by a
reference to another writing for a statement of rights with
respect to collateral, prepayment, or acceleration, or (ii)
because payment is limited to resort to a particular fund or
source.
(c) If a promise or order requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the promise or order, the condition does not
make the promise or order conditional for the purposes of
RCW 62A.3-104(a). If the person whose specimen signature
appears on an instrument fails to countersign the instrument,
the failure to countersign is a defense to the obligation of the
issuer, but the failure does not prevent a transferee of the
instrument from becoming a holder of the instrument.
(d) If a promise or order at the time it is issued or first
comes into possession of a holder contains a statement,
required by applicable statutory or administrative law, to the
effect that the rights of a holder or transferee are subject to
claims or defenses that the issuer could assert against the
original payee, the promise or order is not thereby made conditional for the purposes of RCW 62A.3-104(a); but if the
promise or order is an instrument, there cannot be a holder in
due course of the instrument. [1993 c 229 § 8; 1989 c 13 § 1;
1965 ex.s. c 157 § 3-106. Cf. former RCW sections: (i) RCW
62.01.002; 1955 c 35 § 62.01.002; prior: 1899 c 149 § 2;
RRS § 3393. (ii) RCW 62.01.006(5); 1955 c 35 § 62.01.006;
prior: 1899 c 149 § 6; RRS § 3397.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-107
62A.3-107 Instrument payable in foreign money.
Unless the instrument otherwise provides, an instrument that
states the amount payable in foreign money may be paid in
the foreign money or in an equivalent amount in dollars calculated by using the current bank-offered spot rate at the
place of payment for the purchase of dollars on the day on
which the instrument is paid. [1993 c 229 § 9; 1965 ex.s. c
157 § 3-107. Cf. former RCW 62.01.006(5); 1955 c 35 §
62.01.006; prior: 1899 c 149 § 6; RRS § 3397.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
[Title 62A RCW—page 47]
62A.3-108
Title 62A RCW: Uniform Commercial Code
62A.3-108
62A.3-108 Payable on demand or at definite time. (a)
A promise or order is "payable on demand" if it (i) states that
it is payable on demand or at sight, or otherwise indicates that
it is payable at the will of the holder, or (ii) does not state any
time of payment.
(b) A promise or order is "payable at a definite time" if it
is payable on elapse of a definite period of time after sight or
acceptance or at a fixed date or dates or at a time or times
readily ascertainable at the time the promise or order is
issued, subject to rights of (i) prepayment, (ii) acceleration,
(iii) extension at the option of the holder, or (iv) extension to
a further definite time at the option of the maker or acceptor
or automatically upon or after a specified act or event.
(c) If an instrument, payable at a fixed date, is also payable upon demand made before the fixed date, the instrument
is payable on demand until the fixed date and, if demand for
payment is not made before that date, becomes payable at a
definite time on the fixed date. [1993 c 229 § 10; 1965 ex.s.
c 157 § 3-108. Cf. former RCW 62.01.007; 1955 c 35 §
62.01.007; prior: 1899 c 149 § 7; RRS § 3398.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-109
62A.3-109 Payable to bearer or to order. (a) A promise or order is payable to bearer if it:
(1) States that it is payable to bearer or to the order of
bearer or otherwise indicates that the person in possession of
the promise or order is entitled to payment;
(2) Does not state a payee; or
(3) States that it is payable to or to the order of cash or
otherwise indicates that it is not payable to an identified person.
(b) A promise or order that is not payable to bearer is
payable to order if it is payable (i) to the order of an identified
person or (ii) to an identified person or order. A promise or
order that is payable to order is payable to the identified person.
(c) An instrument payable to bearer may become payable
to an identified person if it is specially indorsed pursuant to
RCW 62A.3-205(a). An instrument payable to an identified
person may become payable to bearer if it is indorsed in
blank pursuant to RCW 62A.3-205(b). [1993 c 229 § 11;
1989 c 13 § 2; 1965 ex.s. c 157 § 3-109. Cf. former RCW sections: (i) RCW 62.01.002(3); 1955 c 35 § 62.01.002; prior:
1899 c 149 § 2; RRS § 3393. (ii) RCW 62.01.004; 1955 c 35
§ 62.01.004; prior: 1899 c 149 § 4; RRS § 3395. (iii) RCW
62.01.017(3); 1955 c 35 § 62.01.017; prior: 1899 c 149 § 17;
RRS § 3408.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-110
62A.3-110 Identification of person to whom instrument is payable. (a) The person to whom an instrument is
initially payable is determined by the intent of the person,
whether or not authorized, signing as, or in the name or
behalf of, the issuer of the instrument. The instrument is payable to the person intended by the signer even if that person is
identified in the instrument by a name or other identification
that is not that of the intended person. If more than one person
signs in the name or behalf of the issuer of an instrument and
all the signers do not intend the same person as payee, the
[Title 62A RCW—page 48]
instrument is payable to any person intended by one or more
of the signers.
(b) If the signature of the issuer of an instrument is made
by automated means, such as a check-writing machine, the
payee of the instrument is determined by the intent of the person who supplied the name or identification of the payee,
whether or not authorized to do so.
(c) A person to whom an instrument is payable may be
identified in any way, including by name, identifying number, office, or account number. For the purpose of determining the holder of an instrument, the following rules apply:
(1) If an instrument is payable to an account and the
account is identified only by number, the instrument is payable to the person to whom the account is payable. If an
instrument is payable to an account identified by number and
by the name of a person, the instrument is payable to the
named person, whether or not that person is the owner of the
account identified by number.
(2) If an instrument is payable to:
(i) A trust, an estate, or a person described as trustee or
representative of a trust or estate, the instrument is payable to
the trustee, the representative, or a successor of either,
whether or not the beneficiary or estate is also named;
(ii) A person described as agent or similar representative
of a named or identified person, the instrument is payable to
the represented person, the representative, or a successor of
the representative;
(iii) A fund or organization that is not a legal entity, the
instrument is payable to a representative of the members of
the fund or organization; or
(iv) An office or to a person described as holding an
office, the instrument is payable to the named person, the
incumbent of the office, or a successor to the incumbent.
(d) If an instrument is payable to two or more persons
alternatively, it is payable to any of them and may be negotiated, discharged, or enforced by any or all of them in possession of the instrument. If an instrument is payable to two or
more persons not alternatively, it is payable to all of them and
may be negotiated, discharged, or enforced only by all of
them. If an instrument payable to two or more persons is
ambiguous as to whether it is payable to the persons alternatively, the instrument is payable to the persons alternatively.
[1993 c 229 § 12; 1965 ex.s. c 157 § 3-110. Cf. former RCW
62.01.008; 1955 c 35 § 62.01.008; prior: 1899 c 149 § 8;
RRS § 3399.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-111
62A.3-111 Place of payment. Except as otherwise provided for items in Article 4, an instrument is payable at the
place of payment stated in the instrument. If no place of payment is stated, an instrument is payable at the address of the
drawee or maker stated in the instrument. If no address is
stated, the place of payment is the place of business of the
drawee or maker. If a drawee or maker has more than one
place of business, the place of payment is any place of business of the drawee or maker chosen by the person entitled to
enforce the instrument. If the drawee or maker has no place of
business, the place of payment is the residence of the drawee
or maker. [1993 c 229 § 13; 1965 ex.s. c 157 § 3-111. Cf.
(2004 Ed.)
Negotiable Instruments
former RCW 62.01.009; 1955 c 35 § 62.01.009; prior: 1899
c 149 § 9; RRS § 3400.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-112
62A.3-112 Interest. (a) Unless otherwise provided in
the instrument or in RCW 19.52.010, (i) an instrument is not
payable with interest, and (ii) interest on an interest-bearing
instrument is payable from the date of the instrument.
(b) Interest may be stated in an instrument as a fixed or
variable amount of money or it may be expressed as a fixed
or variable rate or rates. The amount or rate of interest may be
stated or described in the instrument in any manner and may
require reference to information not contained in the instrument. If an instrument provides for interest, but the amount of
interest payable cannot be ascertained from the description,
then except as otherwise provided in RCW 19.52.010, interest is payable at the judgment rate in effect at the place of
payment of the instrument and at the time interest first
accrues. [1996 c 77 § 3; 1993 c 229 § 14; 1965 ex.s. c 157 §
3-112. Cf. former RCW sections: (i) 62.01.005; 1955 c 35 §
62.01.005; prior: 1899 c 149 § 5; RRS § 3396. (ii) RCW
62.01.006; 1955 c 35 § 62.01.006; prior: 1899 c 149 § 6;
RRS § 3397.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-113
62A.3-113 Date of instrument. (a) An instrument may
be antedated or postdated. The date stated determines the
time of payment if the instrument is payable at a fixed period
after date. Except as provided in RCW 62A.4-401(c), an
instrument payable on demand is not payable before the date
of the instrument.
(b) If an instrument is undated, its date is the date of its
issue or, in the case of an unissued instrument, the date it first
comes into possession of a holder. [1993 c 229 § 15; 1965
ex.s. c 157 § 3-113. Cf. former RCW 62.01.006(4); 1955 c 35
§ 62.01.006; prior: 1899 c 149 § 6; RRS § 3397.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-114
62A.3-114 Contradictory terms of instrument. If an
instrument contains contradictory terms, typewritten terms
prevail over printed terms, handwritten terms prevail over
both, and words prevail over numbers. [1993 c 229 § 16;
1965 ex.s. c 157 § 3-114. Cf. former RCW sections: (i) RCW
62.01.006(1); 1955 c 35 § 62.01.006; prior: 1899 c 149 § 6;
RRS § 3397. (ii) RCW 62.01.011; 1955 c 35 § 62.01.011;
prior: 1899 c 149 § 11; RRS § 3402. (iii) RCW 62.01.012;
1955 c 35 § 62.01.012; prior: 1899 c 149 § 12; RRS § 3403.
(iv) RCW 62.01.017(3); 1955 c 35 § 62.01.017; prior: 1899
c 149 § 17; RRS § 3408.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-115
62A.3-115 Incomplete instrument. (a) "Incomplete
instrument" means a signed writing, whether or not issued by
the signer, the contents of which show at the time of signing
that it is incomplete but that the signer intended it to be completed by the addition of words or numbers.
(2004 Ed.)
62A.3-117
(b) Subject to subsection (c), if an incomplete instrument
is an instrument under RCW 62A.3-104, it may be enforced
according to its terms if it is not completed, or according to its
terms as augmented by completion. If an incomplete instrument is not an instrument under RCW 62A.3-104, but, after
completion, the requirements of RCW 62A.3-104 are met,
the instrument may be enforced according to its terms as augmented by completion.
(c) If words or numbers are added to an incomplete
instrument without authority of the signer, there is an alteration of the incomplete instrument under RCW 62A.3-407.
(d) The burden of establishing that words or numbers
were added to an incomplete instrument without authority of
the signer is on the person asserting the lack of authority.
[1993 c 229 § 17; 1965 ex.s. c 157 § 3-115. Cf. former RCW
sections: (i) RCW 62.01.013; 1955 c 35 § 62.01.013; prior:
1899 c 149 § 13; RRS § 3404. (ii) RCW 62.01.014; 1955 c 35
§ 62.01.014; prior: 1899 c 149 § 14; RRS § 3405. (iii) RCW
62.01.015; 1955 c 35 § 62.01.015; prior: 1899 c 149 § 15;
RRS § 3406.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-116
62A.3-116 Joint and several liability; contribution.
(a) Except as otherwise provided in the instrument, two or
more persons who have the same liability on an instrument as
makers, drawers, acceptors, indorsers who indorse as joint
payees, or anomalous indorsers are jointly and severally liable in the capacity in which they sign.
(b) Except as provided in RCW 62A.3-419(e) or by
agreement of the affected parties, a party having joint and
several liability who pays the instrument is entitled to receive
from any party having the same joint and several liability
contribution in accordance with applicable law.
(c) Discharge of one party having joint and several liability by a person entitled to enforce the instrument does not
affect the right under subsection (b) of a party having the
same joint and several liability to receive contribution from
the party discharged. [1993 c 229 § 18; 1965 ex.s. c 157 § 3116. Cf. former RCW 62.01.041; 1955 c 35 § 62.01.041;
prior: 1899 c 149 § 41; RRS § 3432.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-117
62A.3-117 Other agreements affecting instrument.
Subject to applicable law regarding exclusion of proof of
contemporaneous or previous agreements, the obligation of a
party to an instrument to pay the instrument may be modified,
supplemented, or nullified by a separate agreement of the
obligor and a person entitled to enforce the instrument, if the
instrument is issued or the obligation is incurred in reliance
on the agreement or as part of the same transaction giving rise
to the agreement. To the extent an obligation is modified,
supplemented, or nullified by an agreement under this section, the agreement is a defense to the obligation. [1993 c 229
§ 19; 1965 ex.s. c 157 § 3-117. Cf. former RCW 62.01.042;
1955 c 35 § 62.01.042; prior: 1899 c 149 § 42; RRS § 3433.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
[Title 62A RCW—page 49]
62A.3-118
Title 62A RCW: Uniform Commercial Code
62A.3-118
62A.3-118 Statute of limitations. (a) Except as provided in subsection (e), an action to enforce the obligation of
a party to pay a note payable at a definite time must be commenced within six years after the due date or dates stated in
the note or, if a due date is accelerated, within six years after
the accelerated due date.
(b) Except as provided in subsection (d) or (e), if demand
for payment is made to the maker of a note payable on
demand, an action to enforce the obligation of a party to pay
the note must be commenced within six years after the
demand. If no demand for payment is made to the maker, an
action to enforce the note is barred if neither principal nor
interest on the note has been paid for a continuous period of
ten years.
(c) Except as provided in subsection (d), an action to
enforce the obligation of a party to an unaccepted draft to pay
the draft must be commenced within six years after dishonor
of the draft or ten years after the date of the draft, whichever
period expires first.
(d) An action to enforce the obligation of the acceptor of
a certified check or the issuer of a teller's check, cashier's
check, or traveler's check must be commenced within three
years after demand for payment is made to the acceptor or
issuer, as the case may be.
(e) An action to enforce the obligation of a party to a certificate of deposit to pay the instrument must be commenced
within six years after demand for payment is made to the
maker, but if the instrument states a due date and the maker is
not required to pay before that date, the six-year period
begins when a demand for payment is in effect and the due
date has passed.
(f) An action to enforce the obligation of a party to pay
an accepted draft, other than a certified check, must be commenced (i) within six years after the due date or dates stated
in the draft or acceptance if the obligation of the acceptor is
payable at a definite time, or (ii) within six years after the
date of the acceptance if the obligation of the acceptor is payable on demand.
(g) Unless governed by other law regarding claims for
indemnity or contribution, an action (i) for conversion of an
instrument, for money had and received, or like action based
on conversion, (ii) for breach of warranty, or (iii) to enforce
an obligation, duty, or right arising under this Article and not
governed by this section must be commenced within three
years after the cause of action accrues. [1995 c 74 § 1; 1993
c 229 § 20; 1965 ex.s. c 157 § 3-118. Cf. former RCW sections: (i) RCW 62.01.017; 1955 c 35 § 62.01.017; prior:
1899 c 149 § 17; RRS § 3408. (ii) RCW 62.01.068; 1955 c 35
§ 62.01.068; prior: 1899 c 149 § 68; RRS § 3459. (iii) RCW
62.01.130; 1955 c 35 § 62.01.130; prior: 1899 c 149 § 130;
RRS § 3520.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-119
62A.3-119 Notice of right to defend action. In an
action for breach of an obligation for which a third person is
answerable over pursuant to this Article or Article 4, the
defendant may give the third person written notice of the litigation, and the person notified may then give similar notice
to any other person who is answerable over. If the notice
states (i) that the person notified may come in and defend and
[Title 62A RCW—page 50]
(ii) that failure to do so will bind the person notified in an
action later brought by the person giving the notice as to any
determination of fact common to the two litigations, the person notified is so bound unless after seasonable receipt of the
notice the person notified does come in and defend. [1993 c
229 § 21; 1965 ex.s. c 157 § 3-119.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-201
62A.3-201 Negotiation. (a) "Negotiation" means a
transfer of possession, whether voluntary or involuntary, of
an instrument by a person other than the issuer to a person
who thereby becomes its holder.
(b) Except for negotiation by a remitter, if an instrument
is payable to an identified person, negotiation requires transfer of possession of the instrument and its indorsement by the
holder. If an instrument is payable to bearer, it may be negotiated by transfer of possession alone. [1993 c 229 § 22; 1965
ex.s. c 157 § 3-201. Cf. former RCW sections: (i) RCW
62.01.027; 1955 c 35 § 62.01.027; prior: 1899 c 149 § 27;
RRS § 3418. (ii) RCW 62.01.049; 1955 c 35 § 62.01.049;
prior: 1899 c 149 § 49; RRS § 3440. (iii) RCW 62.01.058;
1955 c 35 § 62.01.058; prior: 1899 c 149 § 58; RRS § 3449.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-202
62A.3-202 Negotiation subject to rescission. (a)
Negotiation is effective even if obtained (i) from an infant, a
corporation exceeding its powers, or a person without capacity, (ii) by fraud, duress, or mistake, or (iii) in breach of duty
or as part of an illegal transaction.
(b) To the extent permitted by other law, negotiation may
be rescinded or may be subject to other remedies, but those
remedies may not be asserted against a subsequent holder in
due course or a person paying the instrument in good faith
and without knowledge of facts that are a basis for rescission
or other remedy. [1993 c 229 § 23; 1965 ex.s. c 157 § 3-202.
Cf. former RCW sections: (i) RCW 62.01.030; 1955 c 35 §
62.01.030; prior: 1899 c 149 § 30; RRS § 3421. (ii) RCW
62.01.031; 1955 c 35 § 62.01.031; prior: 1899 c 149 § 31;
RRS § 3422. (iii) RCW 62.01.032; 1955 c 35 § 62.01.032;
prior: 1899 c 149 § 32; RRS § 3423.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-203
62A.3-203 Transfer of instrument; rights acquired
by transfer. (a) An instrument is transferred when it is delivered by a person other than its issuer for the purpose of giving
to the person receiving delivery the right to enforce the
instrument.
(b) Transfer of an instrument, whether or not the transfer
is a negotiation, vests in the transferee any right of the transferor to enforce the instrument, including any right as a
holder in due course, but the transferee cannot acquire rights
of a holder in due course by a transfer, directly or indirectly,
from a holder in due course if the transferee engaged in fraud
or illegality affecting the instrument.
(c) Unless otherwise agreed, if an instrument is transferred for value and the transferee does not become a holder
because of lack of indorsement by the transferor, the transferee has a specifically enforceable right to the unqualified
(2004 Ed.)
Negotiable Instruments
indorsement of the transferor, but negotiation of the instrument does not occur until the indorsement is made.
(d) If a transferor purports to transfer less than the entire
instrument, negotiation of the instrument does not occur. The
transferee obtains no rights under this Article and has only
the rights of a partial assignee. [1993 c 229 § 24; 1965 ex.s.
c 157 § 3-203. Cf. former RCW 62.01.043; 1955 c 35 §
62.01.043; prior: 1899 c 149 § 43; RRS § 3434.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-204
62A.3-204 Indorsement. (a) "Indorsement" means a
signature, other than that of a signer as maker, drawer, or
acceptor, that alone or accompanied by other words is made
on an instrument for the purpose of (i) negotiating the instrument, (ii) restricting payment of the instrument, or (iii) incurring indorser's liability on the instrument, but regardless of
the intent of the signer, a signature and its accompanying
words is an indorsement unless the accompanying words,
terms of the instrument, place of the signature, or other circumstances unambiguously indicate that the signature was
made for a purpose other than indorsement. For the purpose
of determining whether a signature is made on an instrument,
a paper affixed to the instrument is a part of the instrument.
(b) "Indorser" means a person who makes an indorsement.
(c) For the purpose of determining whether the transferee
of an instrument is a holder, an indorsement that transfers a
security interest in the instrument is effective as an unqualified indorsement of the instrument.
(d) If an instrument is payable to a holder under a name
that is not the name of the holder, indorsement may be made
by the holder in the name stated in the instrument or in the
holder's name or both, but signature in both names may be
required by a person paying or taking the instrument for value
or collection. [1993 c 229 § 25; 1965 ex.s. c 157 § 3-204. Cf.
former RCW sections: (i) RCW 62.01.009(5); 1955 c 35 §
62.01.009; prior: 1899 c 149 § 9; RRS § 3400. (ii) RCW
62.01.033 through 62.01.036; 1955 c 35 §§ 62.01.033
through 62.01.036; prior: 1899 c 149 §§ 33 through 36; RRS
§§ 3424 through 3427. (iii) RCW 62.01.040; 1955 c 35 §
62.01.040; prior: 1899 c 149 § 40; RRS § 3431.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-205
62A.3-205 Special indorsement; blank indorsement;
anomalous indorsement. (a) If an indorsement is made by
the holder of an instrument, whether payable to an identified
person or payable to bearer, and the indorsement identifies a
person to whom it makes the instrument payable, it is a "special indorsement." When specially indorsed, an instrument
becomes payable to the identified person and may be negotiated only by the indorsement of that person. The principles
stated in RCW 62A.3-110 apply to special indorsements.
(b) If an indorsement is made by the holder of an instrument and it is not a special indorsement, it is a "blank indorsement." When indorsed in blank, an instrument becomes payable to bearer and may be negotiated by transfer of possession alone until specially indorsed.
(c) The holder may convert a blank indorsement that
consists only of a signature into a special indorsement by
(2004 Ed.)
62A.3-206
writing, above the signature of the indorser, words identifying the person to whom the instrument is made payable.
(d) "Anomalous indorsement" means an indorsement
made by a person who is not the holder of the instrument. An
anomalous indorsement does not affect the manner in which
the instrument may be negotiated. [1993 c 229 § 26; 1965
ex.s. c 157 § 3-205. Cf. former RCW sections: (i) RCW
62.01.036; 1955 c 35 § 62.01.036; prior: 1899 c 149 § 36;
RRS § 3427. (ii) RCW 62.01.039; 1955 c 35 § 62.01.039;
prior: 1899 c 149 § 39; RRS § 3430.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-206
62A.3-206 Restrictive indorsement. (a) An indorsement limiting payment to a particular person or otherwise
prohibiting further transfer or negotiation of the instrument is
not effective to prevent further transfer or negotiation of the
instrument.
(b) An indorsement stating a condition to the right of the
indorsee to receive payment does not affect the right of the
indorsee to enforce the instrument. A person paying the
instrument or taking it for value or collection may disregard
the condition, and the rights and liabilities of that person are
not affected by whether the condition has been fulfilled.
(c) If an instrument bears an indorsement (i) described in
RCW 62A.4-201(b), or (ii) in blank or to a particular bank
using the words "for deposit," "for collection," or other words
indicating a purpose of having the instrument collected by a
bank for the indorser or for a particular account, the following rules apply:
(1) A person, other than a bank, who purchases the
instrument when so indorsed converts the instrument unless
the amount paid for the instrument is received by the indorser
or applied consistently with the indorsement.
(2) A depositary bank that purchases the instrument or
takes it for collection when so indorsed converts the instrument unless the amount paid by the bank with respect to the
instrument is received by the indorser or applied consistently
with the indorsement.
(3) A payor bank that is also the depositary bank or that
takes the instrument for immediate payment over the counter
from a person other than a collecting bank converts the
instrument unless the proceeds of the instrument are received
by the indorser or applied consistently with the indorsement.
(4) Except as otherwise provided in subsection (c)(3), a
payor bank or intermediary bank may disregard the indorsement and is not liable if the proceeds of the instrument are not
received by the indorser or applied consistently with the
indorsement.
(d) Except for an indorsement covered by subsection (c),
if an instrument bears an indorsement using words to the
effect that payment is to be made to the indorsee as agent,
trustee, or other fiduciary for the benefit of the indorser or
another person, the following rules apply:
(1) Unless there is notice of breach of fiduciary duty as
provided in RCW 62A.3-307, a person who purchases the
instrument from the indorsee or takes the instrument from the
indorsee for collection or payment may pay the proceeds of
payment or the value given for the instrument to the indorsee
without regard to whether the indorsee violates a fiduciary
duty to the indorser.
[Title 62A RCW—page 51]
62A.3-207
Title 62A RCW: Uniform Commercial Code
(2) A subsequent transferee of the instrument or person
who pays the instrument is neither given notice nor otherwise
affected by the restriction in the indorsement unless the transferee or payor knows that the fiduciary dealt with the instrument or its proceeds in breach of fiduciary duty.
(e) The presence on an instrument of an indorsement to
which this section applies does not prevent a purchaser of the
instrument from becoming a holder in due course of the
instrument unless the purchaser is a converter under subsection (c) or has notice or knowledge of breach of fiduciary
duty as stated in subsection (d).
(f) In an action to enforce the obligation of a party to pay
the instrument, the obligor has a defense if payment would
violate an indorsement to which this section applies and the
payment is not permitted by this section. [1993 c 229 § 27;
1965 ex.s. c 157 § 3-206. Cf. former RCW sections: (i) RCW
62.01.036; 1955 c 35 § 62.01.036; prior: 1899 c 149 § 36;
RRS § 3427. (ii) RCW 62.01.037; 1955 c 35 § 62.01.037;
prior: 1899 c 149 § 37; RRS § 3428. (iii) RCW 62.01.039;
1955 c 35 § 62.01.039; prior: 1899 c 149 § 39; RRS § 3430.
(iv) RCW 62.01.047; 1955 c 35 § 62.01.047; prior: 1899 c
149 § 47; RRS § 3438.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-207
62A.3-207 Reacquisition. Reacquisition of an instrument occurs if it is transferred to a former holder, by negotiation or otherwise. A former holder who reacquires the instrument may cancel indorsements made after the reacquirer first
became a holder of the instrument. If the cancellation causes
the instrument to be payable to the reacquirer or to bearer, the
reacquirer may negotiate the instrument. An indorser whose
indorsement is canceled is discharged, and the discharge is
effective against any subsequent holder. [1993 c 229 § 28;
1965 ex.s. c 157 § 3-207. Cf. former RCW sections: (i) RCW
62.01.022; 1955 c 35 § 62.01.022; prior: 1899 c 149 § 22;
RRS § 3413. (ii) RCW 62.01.058; 1955 c 35 § 62.01.058;
prior: 1899 c 149 § 58; RRS § 3449. (iii) RCW 62.01.059;
1955 c 35 § 62.01.059; prior: 1899 c 149 § 59; RRS § 3450.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-301
62A.3-301 Person entitled to enforce instrument.
"Person entitled to enforce" an instrument means (i) the
holder of the instrument, (ii) a nonholder in possession of the
instrument who has the rights of a holder, or (iii) a person not
in possession of the instrument who is entitled to enforce the
instrument pursuant to RCW 62A.3-309 or 62A.3-418(d). A
person may be a person entitled to enforce the instrument
even though the person is not the owner of the instrument or
is in wrongful possession of the instrument. [1993 c 229 §
29; 1965 ex.s. c 157 § 3-301. Cf. former RCW 62.01.051;
1955 c 35 § 62.01.051; prior: 1899 c 149 § 51; RRS § 3442.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
alteration or is not otherwise so irregular or incomplete as to
call into question its authenticity; and
(2) The holder took the instrument (i) for value, (ii) in
good faith, (iii) without notice that the instrument is overdue
or has been dishonored or that there is an uncured default
with respect to payment of another instrument issued as part
of the same series, (iv) without notice that the instrument
contains an unauthorized signature or has been altered, (v)
without notice of any claim to the instrument described in
RCW 62A.3-306, and (vi) without notice that any party has a
defense or claim in recoupment described in RCW
62A.3-305(a).
(b) Notice of discharge of a party, other than discharge in
an insolvency proceeding, is not notice of a defense under
subsection (a), but discharge is effective against a person who
became a holder in due course with notice of the discharge.
Public filing or recording of a document does not of itself
constitute notice of a defense, claim in recoupment, or claim
to the instrument.
(c) Except to the extent a transferor or predecessor in
interest has rights as a holder in due course, a person does not
acquire rights of a holder in due course of an instrument taken
(i) by legal process or by purchase in an execution, bankruptcy, or creditor's sale or similar proceeding, (ii) by purchase as part of a bulk transaction not in ordinary course of
business of the transferor, or (iii) as the successor in interest
to an estate or other organization.
(d) If, under RCW 62A.3-303(a)(1), the promise of performance that is the consideration for an instrument has been
partially performed, the holder may assert rights as a holder
in due course of the instrument only to the fraction of the
amount payable under the instrument equal to the value of the
partial performance divided by the value of the promised performance.
(e) If (i) the person entitled to enforce an instrument has
only a security interest in the instrument and (ii) the person
obliged to pay the instrument has a defense, claim in recoupment, or claim to the instrument that may be asserted against
the person who granted the security interest, the person entitled to enforce the instrument may assert rights as a holder in
due course only to an amount payable under the instrument
which, at the time of enforcement of the instrument, does not
exceed the amount of the unpaid obligation secured.
(f) To be effective, notice must be received at a time and
in a manner that gives a reasonable opportunity to act on it.
(g) This section is subject to any law limiting status as a
holder in due course in particular classes of transactions.
[1993 c 229 § 30; 1965 ex.s. c 157 § 3-302. Cf. former RCW
sections: (i) RCW 62.01.027; 1955 c 35 § 62.01.027; prior:
1899 c 149 § 27; RRS § 3418. (ii) RCW 62.01.052; 1955 c 35
§ 62.01.052; prior: 1899 c 149 § 52; RRS § 3443.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-303
62A.3-302
62A.3-302 Holder in due course. (a) Subject to subsection (c) and RCW 62A.3-106(d), "holder in due course"
means the holder of an instrument if:
(1) The instrument when issued or negotiated to the
holder does not bear such apparent evidence of forgery or
[Title 62A RCW—page 52]
62A.3-303 Value and consideration. (a) An instrument is issued or transferred for value if:
(1) The instrument is issued or transferred for a promise
of performance, to the extent the promise has been performed;
(2004 Ed.)
Negotiable Instruments
(2) The transferee acquires a security interest or other
lien in the instrument other than a lien obtained by judicial
proceeding;
(3) The instrument is issued or transferred as payment of,
or as security for, an antecedent claim against any person,
whether or not the claim is due;
(4) The instrument is issued or transferred in exchange
for a negotiable instrument; or
(5) The instrument is issued or transferred in exchange
for the incurring of an irrevocable obligation to a third party
by the person taking the instrument.
(b) "Consideration" means any consideration sufficient
to support a simple contract. The drawer or maker of an
instrument has a defense if the instrument is issued without
consideration. If an instrument is issued for a promise of performance, the issuer has a defense to the extent performance
of the promise is due and the promise has not been performed. If an instrument is issued for value as stated in
subsection (a), the instrument is also issued for consideration.
[1993 c 229 § 31; 1965 ex.s. c 157 § 3-303. Cf. former RCW
sections: (i) RCW 62.01.025 through 62.01.027; 1955 c 35
§§ 62.01.025 through 62.01.027; prior: 1899 c 149 §§ 25
through 27; RRS §§ 3416 through 3418. (ii) RCW 62.01.054;
1955 c 35 § 62.01.054; prior: 1899 c 149 § 54; RRS § 3445.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-304
62A.3-304 Overdue instrument. (a) An instrument
payable on demand becomes overdue at the earliest of the following times:
(1) On the day after the day demand for payment is duly
made;
(2) If the instrument is a check, 90 days after its date; or
(3) If the instrument is not a check, when the instrument
has been outstanding for a period of time after its date which
is unreasonably long under the circumstances of the particular case in light of the nature of the instrument and usage of
the trade.
(b) With respect to an instrument payable at a definite
time the following rules apply:
(1) If the principal is payable in installments and a due
date has not been accelerated, the instrument becomes overdue upon default under the instrument for nonpayment of an
installment, and the instrument remains overdue until the
default is cured.
(2) If the principal is not payable in installments and the
due date has not been accelerated, the instrument becomes
overdue on the day after the due date.
(3) If a due date with respect to principal has been accelerated, the instrument becomes overdue on the day after the
accelerated due date.
(c) Unless the due date of principal has been accelerated,
an instrument does not become overdue if there is default in
payment of interest but no default in payment of principal.
[1993 c 229 § 32; 1965 ex.s. c 157 § 3-304. Cf. former RCW
sections: (i) RCW 62.01.045, 62.01.052, 62.01.053,
62.01.055, and 62.01.056; 1955 c 35 §§ 62.01.045,
62.01.052, 62.01.053, 62.01.055, and 62.01.056; prior: 1899
c 149 §§ 45, 52, 53, 55, and 56; RRS §§ 3436, 3443, 3444,
3446, and 3447. (ii) RCW 62.01.0195; 1955 c 35 §
(2004 Ed.)
62A.3-305
62.01.0195; prior: 1927 c 296 § 1; 1925 ex.s. c 54 § 1; RRS
§ 3410-1.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-305
62A.3-305 Defenses and claims in recoupment. (a)
Except as stated in subsection (b), the right to enforce the
obligation of a party to pay an instrument is subject to the following:
(1) A defense of the obligor based on (i) infancy of the
obligor to the extent it is a defense to a simple contract, (ii)
duress, lack of legal capacity, or illegality of the transaction
which, under other law, nullifies the obligation of the obligor,
(iii) fraud that induced the obligor to sign the instrument with
neither knowledge nor reasonable opportunity to learn of its
character or its essential terms, or (iv) discharge of the obligor in insolvency proceedings;
(2) A defense of the obligor stated in another section of
this Article or a defense of the obligor that would be available
if the person entitled to enforce the instrument were enforcing a right to payment under a simple contract; and
(3) A claim in recoupment of the obligor against the
original payee of the instrument if the claim arose from the
transaction that gave rise to the instrument; but the claim of
the obligor may be asserted against a transferee of the instrument only to reduce the amount owing on the instrument at
the time the action is brought.
(b) The right of a holder in due course to enforce the
obligation of a party to pay the instrument is subject to
defenses of the obligor stated in subsection (a)(1), but is not
subject to defenses of the obligor stated in subsection (a)(2)
or claims in recoupment stated in subsection (a)(3) against a
person other than the holder.
(c) Except as stated in subsection (d), in an action to
enforce the obligation of a party to pay the instrument, the
obligor may not assert against the person entitled to enforce
the instrument a defense, claim in recoupment, or claim to the
instrument (RCW 62A.3-306) of another person, but the
other person's claim to the instrument may be asserted by the
obligor if the other person is joined in the action and personally asserts the claim against the person entitled to enforce the
instrument. An obligor is not obliged to pay the instrument if
the person seeking enforcement of the instrument does not
have rights of a holder in due course and the obligor proves
that the instrument is a lost or stolen instrument.
(d) In an action to enforce the obligation of an accommodation party to pay an instrument, the accommodation party
may assert against the person entitled to enforce the instrument any defense or claim in recoupment under subsection
(a) that the accommodated party could assert against the person entitled to enforce the instrument, except the defenses of
discharge in insolvency proceedings, infancy, and lack of
legal capacity. [1993 c 229 § 33; 1965 ex.s. c 157 § 3-305.
Cf. former RCW sections: (i) RCW 62.01.015; 1955 c 35 §
62.01.015; prior: 1899 c 149 § 15; RRS § 3406. (ii) RCW
62.01.016; 1955 c 35 § 62.01.016; prior: 1899 c 149 § 16;
RRS § 3407. (iii) RCW 62.01.057; 1955 c 35 § 62.01.057;
prior: 1899 c 149 § 57; RRS § 3448.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
[Title 62A RCW—page 53]
62A.3-306
Title 62A RCW: Uniform Commercial Code
62A.3-306
62A.3-306 Claims to an instrument. A person taking
an instrument, other than a person having rights of a holder in
due course, is subject to a claim of a property or possessory
right in the instrument or its proceeds, including a claim to
rescind a negotiation and to recover the instrument or its proceeds. A person having rights of a holder in due course takes
free of the claim to the instrument. [1993 c 229 § 34; 1965
ex.s. c 157 § 3-306. Cf. former RCW sections: (i) RCW
62.01.016; 1955 c 35 § 62.01.016; prior: 1899 c 149 § 16;
RRS § 3407. (ii) RCW 62.01.028; 1955 c 35 § 62.01.028;
prior: 1899 c 149 § 28; RRS § 3419. (iii) RCW 62.01.058;
1955 c 35 § 62.01.058; prior: 1899 c 149 § 58; RRS § 3449.
(iv) RCW 62.01.059; 1955 c 35 § 62.01.059; prior: 1899 c
149 § 59; RRS § 3450.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-307
62A.3-307 Notice of breach of fiduciary duty. (a) In
this section:
(1) "Fiduciary" means an agent, trustee, partner, corporate officer or director, or other representative owing a fiduciary duty with respect to an instrument.
(2) "Represented person" means the principal, beneficiary, partnership, corporation, or other person to whom the
duty stated in subsection (a)(1) is owed.
(b) If (i) an instrument is taken from a fiduciary for payment or collection or for value, (ii) the taker has knowledge
of the fiduciary status of the fiduciary, and (iii) the represented person makes a claim to the instrument or its proceeds
on the basis that the transaction of the fiduciary is a breach of
fiduciary duty, the following rules apply:
(1) Notice of breach of fiduciary duty by the fiduciary is
notice of the claim of the represented person.
(2) In the case of an instrument payable to the represented person or the fiduciary as such, the taker has notice of
the breach of fiduciary duty if the instrument is (i) taken in
payment of or as security for a debt known by the taker to be
the personal debt of the fiduciary, (ii) taken in a transaction
known by the taker to be for the personal benefit of the fiduciary, or (iii) deposited to an account other than an account of
the fiduciary, as such, or an account of the represented person.
(3) If an instrument is issued by the represented person
or the fiduciary as such, and made payable to the fiduciary
personally, the taker does not have notice of the breach of
fiduciary duty unless the taker knows of the breach of fiduciary duty.
(4) If an instrument is issued by the represented person
or the fiduciary as such, to the taker as payee, the taker has
notice of the breach of fiduciary duty if the instrument is (i)
taken in payment of or as security for a debt known by the
taker to be the personal debt of the fiduciary, (ii) taken in a
transaction known by the taker to be for the personal benefit
of the fiduciary, or (iii) deposited to an account other than an
account of the fiduciary, as such, or an account of the represented person. [1993 c 229 § 35; 1965 ex.s. c 157 § 3-307.
Cf. former RCW 62.01.059; 1955 c 35 § 62.01.059; prior:
1899 c 149 § 59; RRS § 3450.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
[Title 62A RCW—page 54]
62A.3-308
62A.3-308 Proof of signatures and status as holder in
due course. (a) In an action with respect to an instrument,
the authenticity of, and authority to make, each signature on
the instrument is admitted unless specifically denied in the
pleadings. If the validity of a signature is denied in the pleadings, the burden of establishing validity is on the person
claiming validity, but the signature is presumed to be authentic and authorized unless the action is to enforce the liability
of the purported signer and the signer is dead or incompetent
at the time of trial of the issue of validity of the signature. If
an action to enforce the instrument is brought against a person as the undisclosed principal of a person who signed the
instrument as a party to the instrument, the plaintiff has the
burden of establishing that the defendant is liable on the
instrument as a represented person under RCW
62A.3-402(a).
(b) If the validity of signatures is admitted or proved and
there is compliance with subsection (a), a plaintiff producing
the instrument is entitled to payment if the plaintiff proves
entitlement to enforce the instrument under RCW 62A.3-301,
unless the defendant proves a defense or claim in recoupment. If a defense or claim in recoupment is proved, the right
to payment of the plaintiff is subject to the defense or claim,
except to the extent the plaintiff proves that the plaintiff has
rights of a holder in due course which are not subject to the
defense or claim. [1993 c 229 § 36.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-309
62A.3-309 Enforcement of lost, destroyed, or stolen
instrument. (a) A person not in possession of an instrument
is entitled to enforce the instrument if (i) the person was in
possession of the instrument and entitled to enforce it when
loss of possession occurred, (ii) the loss of possession was
not the result of a transfer by the person or a lawful seizure,
and (iii) the person cannot reasonably obtain possession of
the instrument because the instrument was destroyed, its
whereabouts cannot be determined, or it is in the wrongful
possession of an unknown person or a person that cannot be
found or is not amenable to service of process.
(b) A person seeking enforcement of an instrument under
subsection (a) must prove the terms of the instrument and the
person's right to enforce the instrument. If that proof is made,
RCW 62A.3-308 applies to the case as if the person seeking
enforcement had produced the instrument. The court may not
enter judgment in favor of the person seeking enforcement
unless it finds that the person required to pay the instrument
is adequately protected against loss that might occur by reason of a claim by another person to enforce the instrument.
Adequate protection may be provided by any reasonable
means. [1993 c 229 § 37.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-310
62A.3-310 Effect of instrument on obligation for
which taken. (a) Unless otherwise agreed, if a certified
check, cashier's check, or teller's check is taken for an obligation, the obligation is discharged to the same extent discharge
would result if an amount of money equal to the amount of
the instrument were taken in payment of the obligation. Dis(2004 Ed.)
Negotiable Instruments
charge of the obligation does not affect any liability that the
obligor may have as an indorser of the instrument.
(b) Unless otherwise agreed and except as provided in
subsection (a), if a note or an uncertified check is taken for an
obligation, the obligation is suspended to the same extent the
obligation would be discharged if an amount of money equal
to the amount of the instrument were taken, and the following
rules apply:
(1) In the case of an uncertified check, suspension of the
obligation continues until dishonor of the check or until it is
paid or certified. Payment or certification of the check results
in discharge of the obligation to the extent of the amount of
the check.
(2) In the case of a note, suspension of the obligation
continues until dishonor of the note or until it is paid. Payment of the note results in discharge of the obligation to the
extent of the payment.
(3) Except as provided in subsection (b)(4), if the check
or note is dishonored and the obligee of the obligation for
which the instrument was taken is the person entitled to
enforce the instrument, the obligee may enforce either the
instrument or the obligation. In the case of an instrument of a
third person which is negotiated to the obligee by the obligor,
discharge of the obligor on the instrument also discharges the
obligation.
(4) If the person entitled to enforce the instrument taken
for an obligation is a person other than the obligee, the obligee may not enforce the obligation to the extent the obligation is suspended. If the obligee is the person entitled to
enforce the instrument but no longer has possession of it
because it was lost, stolen, or destroyed, the obligation may
not be enforced to the extent of the amount payable on the
instrument, and to that extent the obligee's rights against the
obligor are limited to enforcement of the instrument.
(c) If an instrument other than one described in subsection (a) or (b) is taken for an obligation, the effect is (i) that
stated in subsection (a) if the instrument is one on which a
bank is liable as maker or acceptor, or (ii) that stated in subsection (b) in any other case. [1993 c 229 § 38.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-311
62A.3-311 Accord and satisfaction by use of instrument. (a) If a person against whom a claim is asserted proves
that (i) that person in good faith tendered an instrument to the
claimant as full satisfaction of the claim, (ii) the amount of
the claim was unliquidated or subject to a bona fide dispute,
and (iii) the claimant obtained payment of the instrument, the
following subsections apply.
(b) Unless subsection (c) applies, the claim is discharged
if the person against whom the claim is asserted proves that
the instrument or an accompanying written communication
contained a conspicuous statement to the effect that the
instrument was tendered as full satisfaction of the claim.
(c) Subject to subsection (d), a claim is not discharged
under subsection (b) if either of the following applies:
(1) The claimant, if an organization, proves that (i)
within a reasonable time before the tender, the claimant sent
a conspicuous statement to the person against whom the
claim is asserted that communications concerning disputed
debts, including an instrument tendered as full satisfaction of
(2004 Ed.)
62A.3-312
a debt, are to be sent to a designated person, office, or place,
and (ii) the instrument or accompanying communication was
not received by that designated person, office, or place.
(2) The claimant, whether or not an organization, proves
that within 90 days after payment of the instrument, the
claimant tendered repayment of the amount of the instrument
to the person against whom the claim is asserted. This subsection (c)(2) does not apply if the claimant is an organization
that sent a statement complying with subsection (c)(1)(i).
(d) A claim is discharged if the person against whom the
claim is asserted proves that within a reasonable time before
collection of the instrument was initiated, the claimant, or an
agent of the claimant having direct responsibility with respect
to the disputed obligation, knew that the instrument was tendered in full satisfaction of the claim. [1993 c 229 § 39.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-312
62A.3-312 Lost, destroyed, or stolen cashier's check,
teller's check, or certified check. (a) In this section:
(1) "Check" means a cashier's check, teller's check, or
certified check.
(2) "Claimant" means a person who claims the right to
receive the amount of a cashier's check, teller's check, or certified check that was lost, destroyed, or stolen.
(3) "Declaration of loss" means a written statement,
made under penalty of perjury, to the effect that (i) the
declarer lost possession of a check, (ii) the declarer is the
drawer or payee of the check, in the case of a certified check,
or the remitter or payee of the check, in the case of a cashier's
check or teller's check, (iii) the loss of possession was not the
result of a transfer by the declarer or a lawful seizure, and (iv)
the declarer cannot reasonably obtain possession of the check
because the check was destroyed, its whereabouts cannot be
determined, or it is in the wrongful possession of an unknown
person or a person that cannot be found or is not amendable
[amenable] to service of process.
(4) "Obligated bank" means the insurer of a cashier's
check or teller's check or the acceptor of a certified check.
(b) A claimant may assert a claim to the amount of a
check by a communication to the obligated bank describing
the check with reasonable certainty and requesting payment
of the amount of the check, if (i) the claimant is the drawer or
payee of a certified check or the remitter or payee of a cashier's check or teller's check, (ii) the communication contains
or is accompanied by a declaration of loss of the claimant
with respect to the check, (iii) the communication is received
at a time and in a manner affording the bank a reasonable
time to act on it before the check is paid, and (iv) the claimant
provides reasonable identification if requested by the obligated bank. Delivery of a declaration of loss is a warranty of
the truth of the statements made in the declaration. If a claim
is asserted in compliance with this subsection, the following
rules apply:
(1) The claim becomes enforceable at the later of (i) the
time the claim is asserted, or (ii) the ninetieth day following
the date of the check, in the case of a cashier's check or teller's
check, or the ninetieth day following the date of the acceptance, in the case of a certified check.
(2) Until the claim becomes enforceable, it has no legal
effect and the obligated bank may pay the check or, in the
[Title 62A RCW—page 55]
62A.3-401
Title 62A RCW: Uniform Commercial Code
case of a teller's check, may permit the drawee to pay the
check. Payment to a person entitled to enforce the check discharges all liability of the obligated bank with respect to the
check.
(3) If the claim becomes enforceable before the check is
presented for payment, the obligated bank is not obliged to
pay the check.
(4) When the claim becomes enforceable, the obligated
bank becomes obliged to pay the amount of the check to the
claimant if payment of the check has not been made to a person entitled to enforce the check. Subject to RCW 62A.4302(a), payment to the claimant discharges all liability of the
obligated bank with respect to the check.
(c) If the obligated bank pays the amount of a check to a
claimant under subsection (b)(4) and the check is presented
for payment by a person having rights of a holder in due
course, the claimant is obliged to (i) refund the payment to
the obligated bank if the check is paid, or (ii) pay the amount
of the check to the person having rights of a holder in due
course if the check is dishonored.
(d) If a claimant has the right to assert a claim under subsection (b) and is also a person entitled to enforce a cashier's
check, teller's check, or certified check that is lost, destroyed,
or stolen, the claimant may assert rights with respect to the
check under this section. [1993 c 229 § 40.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-401
62A.3-401 Signature. (a) A person is not liable on an
instrument unless (i) the person signed the instrument, or (ii)
the person is represented by an agent or representative who
signed the instrument and the signature is binding on the represented person under RCW 62A.3-402.
(b) A signature may be made (i) manually or by means of
a device or machine, and (ii) by the use of any name, including a trade or assumed name, or by a word, mark, or symbol
executed or adopted by a person with present intention to
authenticate a writing. [1993 c 229 § 41; 1965 ex.s. c 157 §
3-401. Cf. former RCW 62.01.018; 1955 c 35 § 62.01.018;
prior: 1899 c 149 § 18; RRS § 3409.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
(2) Subject to subsection (c), if (i) the form of the signature does not show unambiguously that the signature is made
in a representative capacity or (ii) the represented person is
not identified in the instrument, the representative is liable on
the instrument to a holder in due course that took the instrument without notice that the representative was not intended
to be liable on the instrument. With respect to any other person, the representative is liable on the instrument unless the
representative proves that the original parties did not intend
the representative to be liable on the instrument.
(c) If a representative signs the name of the representative as drawer of a check without indication of the representative status and the check is payable from an account of the
represented person who is identified on the check, the signer
is not liable on the check if the signature is an authorized signature of the represented person. [1993 c 229 § 42; 1965
ex.s. c 157 § 3-402. Cf. former RCW sections: (i) RCW
62.01.017(6); 1955 c 149 § 62.01.017; prior: 1899 c 149 §
17; RRS § 3408. (ii) RCW 62.01.063; 1955 c 149 §
62.01.063; prior: 1899 c 149 § 63; RRS § 3454.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-403
62A.3-403 Unauthorized signature. (a) Unless otherwise provided in this Article or Article 4, an unauthorized
signature is ineffective except as the signature of the unauthorized signer in favor of a person who in good faith pays the
instrument or takes it for value. An unauthorized signature
may be ratified for all purposes of this Article.
(b) If the signature of more than one person is required to
constitute the authorized signature of an organization, the signature of the organization is unauthorized if one of the
required signatures is lacking.
(c) The civil or criminal liability of a person who makes
an unauthorized signature is not affected by any provision of
this Article which makes the unauthorized signature effective
for the purposes of this Article. [1993 c 229 § 43; 1965 ex.s.
c 157 § 3-403. Cf. former RCW sections: RCW 62.01.019
through 62.01.021; 1955 c 35 §§ 62.01.019 through
62.01.021; prior: 1899 c 149 §§ 19 through 21; RRS §§ 3410
through 3412.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-402
62A.3-402 Signature by representative. (a) If a person acting, or purporting to act, as a representative signs an
instrument by signing either the name of the represented person or the name of the signer, the represented person is bound
by the signature to the same extent the represented person
would be bound if the signature were on a simple contract. If
the represented person is bound, the signature of the representative is the "authorized signature of the represented person" and the represented person is liable on the instrument,
whether or not identified in the instrument.
(b) If a representative signs the name of the representative to an instrument and the signature is an authorized signature of the represented person, the following rules apply:
(1) If the form of the signature shows unambiguously
that the signature is made on behalf of the represented person
who is identified in the instrument, the representative is not
liable on the instrument.
[Title 62A RCW—page 56]
62A.3-404
62A.3-404 Impostors; fictitious payees. (a) If an
impostor, by use of the mails or otherwise, induces the issuer
of an instrument to issue the instrument to the impostor, or to
a person acting in concert with the impostor, by impersonating the payee of the instrument or a person authorized to act
for the payee, an indorsement of the instrument by any person
in the name of the payee is effective as the indorsement of the
payee in favor of a person who, in good faith, pays the instrument or takes it for value or for collection.
(b) If (i) a person whose intent determines to whom an
instrument is payable (RCW 62A.3-110 (a) or (b)) does not
intend the person identified as payee to have any interest in
the instrument, or (ii) the person identified as payee of an
instrument is a fictitious person, the following rules apply
until the instrument is negotiated by special indorsement:
(1) Any person in possession of the instrument is its
holder.
(2004 Ed.)
Negotiable Instruments
(2) An indorsement by any person in the name of the
payee stated in the instrument is effective as the indorsement
of the payee in favor of a person who, in good faith, pays the
instrument or takes it for value or for collection.
(c) Under subsection (a) or (b), an indorsement is made
in the name of a payee if (i) it is made in a name substantially
similar to that of the payee or (ii) the instrument, whether or
not indorsed, is deposited in a depositary bank to an account
in a name substantially similar to that of the payee.
(d) With respect to an instrument to which subsection (a)
or (b) applies, if a person paying the instrument or taking it
for value or for collection fails to exercise ordinary care in
paying or taking the instrument and that failure contributes to
loss resulting from payment of the instrument, the person
bearing the loss may recover from the person failing to exercise ordinary care to the extent the failure to exercise ordinary
care contributed to the loss. [1993 c 229 § 44; 1965 ex.s. c
157 § 3-404. Cf. former RCW 62.01.023; 1955 c 35 §
62.01.023; prior: 1899 c 149 § 23; RRS § 3414.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-405
62A.3-405 Employer's responsibility for fraudulent
indorsement by employee. (a) In this section:
(1) "Employee" includes an independent contractor and
employee of an independent contractor retained by the
employer.
(2) "Fraudulent indorsement" means (i) in the case of an
instrument payable to the employer, a forged indorsement
purporting to be that of the employer, or (ii) in the case of an
instrument with respect to which the employer is the issuer, a
forged indorsement purporting to be that of the person identified as payee.
(3) "Responsibility" with respect to instruments means
authority (i) to sign or indorse instruments on behalf of the
employer, (ii) to process instruments received by the
employer for bookkeeping purposes, for deposit to an
account, or for other disposition, (iii) to prepare or process
instruments for issue in the name of the employer, (iv) to supply information determining the names or addresses of payees of instruments to be issued in the name of the employer,
(v) to control the disposition of instruments to be issued in the
name of the employer, or (vi) to act otherwise with respect to
instruments in a responsible capacity. "Responsibility" does
not include authority that merely allows an employee to have
access to instruments or blank or incomplete instrument
forms that are being stored or transported or are part of
incoming or outgoing mail, or similar access.
(b) For the purpose of determining the rights and liabilities of a person who, in good faith, pays an instrument or
takes it for value or for collection, if an employer entrusted an
employee with responsibility with respect to the instrument
and the employee or a person acting in concert with the
employee makes a fraudulent indorsement of the instrument,
the indorsement is effective as the indorsement of the person
to whom the instrument is payable if it is made in the name of
that person. If the person paying the instrument or taking it
for value or for collection fails to exercise ordinary care in
paying or taking the instrument and that failure contributes to
loss resulting from the fraud, the person bearing the loss may
recover from the person failing to exercise ordinary care to
(2004 Ed.)
62A.3-407
the extent the failure to exercise ordinary care contributed to
the loss.
(c) Under subsection (b), an indorsement is made in the
name of the person to whom an instrument is payable if (i) it
is made in a name substantially similar to the name of that
person or (ii) the instrument, whether or not indorsed, is
deposited in a depositary bank to an account in a name substantially similar to the name of that person. [1993 c 229 §
45; 1965 ex.s. c 157 § 3-405. Cf. former RCW 62.01.009(3);
1955 c 35 § 62.01.009; prior: 1899 c 149 § 9; RRS § 3400.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-406
62A.3-406 Negligence contributing to forged signature or alteration of instrument. (a) A person whose failure to exercise ordinary care contributes to an alteration of an
instrument or to the making of a forged signature on an
instrument is precluded from asserting the alteration or the
forgery against a person who, in good faith, pays the instrument or takes it for value or for collection.
(b) Under subsection (a), if the person asserting the preclusion fails to exercise ordinary care in paying or taking the
instrument and that failure contributes to loss, the loss is allocated between the person precluded and the person asserting
the preclusion according to the extent to which the failure of
each to exercise ordinary care contributed to the loss.
(c) Under subsection (a), the burden of proving failure to
exercise ordinary care is on the person asserting the preclusion. Under subsection (b), the burden of proving failure to
exercise ordinary care is on the person precluded. [1993 c
229 § 46; 1965 ex.s. c 157 § 3-406.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-407
62A.3-407 Alteration. (a) "Alteration" means (i) an
unauthorized change in an instrument that purports to modify
in any respect the obligation of a party, or (ii) an unauthorized
addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party.
(b) Except as provided in subsection (c), an alteration
fraudulently made discharges a party whose obligation is
affected by the alteration unless that party assents or is precluded from asserting the alteration. No other alteration discharges a party, and the instrument may be enforced according to its original terms.
(c) A payor bank or drawee paying a fraudulently altered
instrument or a person taking it for value, in good faith and
without notice of the alteration, may enforce rights with
respect to the instrument (i) according to its original terms, or
(ii) in the case of an incomplete instrument altered by unauthorized completion, according to its terms as completed.
[1993 c 229 § 47; 1965 ex.s. c 157 § 3-407. Cf. former RCW
sections: (i) RCW 62.01.014; 1955 c 35 § 62.01.014; prior:
1899 c 149 § 14; RRS § 3405. (ii) RCW 62.01.015; 1955 c 35
§ 62.01.015; prior: 1899 c 149 § 15; RRS § 3406. (iii) RCW
62.01.124; 1955 c 35 § 62.01.124; prior: 1899 c 149 § 124;
RRS § 3514. (iv) RCW 62.01.125; 1955 c 35 § 62.01.125;
prior: 1899 c 149 § 125; RRS § 3515.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
[Title 62A RCW—page 57]
62A.3-408
Title 62A RCW: Uniform Commercial Code
62A.3-408
62A.3-408 Drawee not liable on unaccepted draft. A
check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its payment, and the drawee is not liable on the instrument until the
drawee accepts it. [1993 c 229 § 48; 1965 ex.s. c 157 § 3408. Cf. former RCW sections: (i) RCW 62.01.024; 1955 c
35 § 62.01.024; prior: 1899 c 149 § 24; RRS § 3415. (ii)
RCW 62.01.025; 1955 c 35 § 62.01.025; prior: 1899 c 149 §
25; RRS § 3416. (iii) RCW 62.01.028; 1955 c 35 §
62.01.028; prior: 1899 c 149 § 28; RRS § 3419.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-409
62A.3-409 Acceptance of draft; certified check. (a)
"Acceptance" means the drawee's signed agreement to pay a
draft as presented. It must be written on the draft and may
consist of the drawee's signature alone. Acceptance may be
made at any time and becomes effective when notification
pursuant to instructions is given or the accepted draft is delivered for the purpose of giving rights on the acceptance to any
person.
(b) A draft may be accepted although it has not been
signed by the drawer, is otherwise incomplete, is overdue, or
has been dishonored.
(c) If a draft is payable at a fixed period after sight and
the acceptor fails to date the acceptance, the holder may complete the acceptance by supplying a date in good faith.
(d) "Certified check" means a check accepted by the
bank on which it is drawn. Acceptance may be made as stated
in subsection (a) or by a writing on the check which indicates
that the check is certified. The drawee of a check has no obligation to certify the check, and refusal to certify is not dishonor of the check. [1993 c 229 § 49; 1965 ex.s. c 157 § 3409. Cf. former RCW sections: (i) RCW 62.01.127; 1955 c
35 § 62.01.127; prior: 1899 c 149 § 127; RRS § 3517. (ii)
RCW 62.01.189; 1955 c 35 § 62.01.189; prior: 1899 c 149 §
189; RRS § 3579.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-410
62A.3-410 Acceptance varying draft. (a) If the terms
of a drawee's acceptance vary from the terms of the draft as
presented, the holder may refuse the acceptance and treat the
draft as dishonored. In that case, the drawee may cancel the
acceptance.
(b) The terms of a draft are not varied by an acceptance
to pay at a particular bank or place in the United States,
unless the acceptance states that the draft is to be paid only at
that bank or place.
(c) If the holder assents to an acceptance varying the
terms of a draft, the obligation of each drawer and indorser
that does not expressly assent to the acceptance is discharged.
[1993 c 229 § 50; 1965 ex.s. c 157 § 3-410. Cf. former RCW
sections: (i) RCW 62.01.013; 1955 c 35 § 62.01.013; prior:
1899 c 149 § 13; RRS § 3404. (ii) RCW 62.01.132 through
62.01.138; 1955 c 35 §§ 62.01.132 through 62.01.138; prior:
1899 c 149 §§ 132 through 138; RRS §§ 3522 through 3528.
(iii) RCW 62.01.161 through 62.01.170; 1955 c 35 §§
62.01.161 through 62.01.170; prior: 1899 c 149 §§ 161
through 170; RRS §§ 3551 through 3560. (iv) RCW
[Title 62A RCW—page 58]
62.01.191; 1955 c 35 § 62.01.191; prior: 1899 c 149 § 191;
RRS § 3581.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-411
62A.3-411 Refusal to pay cashier's checks, teller's
checks, and certified checks. (a) In this section, "obligated
bank" means the acceptor of a certified check or the issuer of
a cashier's check or teller's check bought from the issuer.
(b) If the obligated bank wrongfully (i) refuses to pay a
cashier's check or certified check, (ii) stops payment of a
teller's check, or (iii) refuses to pay a dishonored teller's
check, the person asserting the right to enforce the check is
entitled to compensation for expenses and loss of interest
resulting from the nonpayment and may recover consequential damages if the obligated bank refuses to pay after receiving notice of particular circumstances giving rise to the damages.
(c) Expenses or consequential damages under subsection
(b) are not recoverable if the refusal of the obligated bank to
pay occurs because (i) the bank suspends payments, (ii) the
obligated bank asserts a claim or defense of the bank that it
has reasonable grounds to believe is available against the person entitled to enforce the instrument, (iii) the obligated bank
has a reasonable doubt whether the person demanding payment is the person entitled to enforce the instrument, or (iv)
payment is prohibited by law. [1993 c 229 § 51; 1965 ex.s. c
157 § 3-411. Cf. former RCW sections: (i) RCW 62.01.187;
1955 c 35 § 62.01.187; prior: 1899 c 149 § 187; RRS § 3577.
(ii) RCW 62.01.188; 1955 c 35 § 62.01.188; prior: 1899 c
149 § 188; RRS § 3578.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-412
62A.3-412 Obligation of issuer of note or cashier's
check. The issuer of a note or cashier's check or other draft
drawn on the drawer is obliged to pay the instrument (i)
according to its terms at the time it was issued or, if not
issued, at the time it first came into possession of a holder, or
(ii) if the issuer signed an incomplete instrument, according
to its terms when completed, to the extent stated in RCW
62A.3-115 and 62A.3-407. The obligation is owed to a person entitled to enforce the instrument or to an indorser who
paid the instrument under RCW 62A.3-415. [1993 c 229 §
52; 1965 ex.s. c 157 § 3-412. Cf. former RCW sections:
RCW 62.01.139 through 62.01.142; 1955 c 35 §§ 62.01.139
through 62.01.142; prior: 1899 c 149 §§ 139 through 142;
RRS §§ 3529 through 3532.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-413
62A.3-413 Obligation of acceptor. (a) The acceptor of
a draft is obliged to pay the draft (i) according to its terms at
the time it was accepted, even though the acceptance states
that the draft is payable "as originally drawn" or equivalent
terms, (ii) if the acceptance varies the terms of the draft,
according to the terms of the draft as varied, or (iii) if the
acceptance is of a draft that is an incomplete instrument,
according to its terms when completed, to the extent stated in
RCW 62A.3-115 and 62A.3-407. The obligation is owed to a
person entitled to enforce the draft or to the drawer or an
(2004 Ed.)
Negotiable Instruments
indorser who paid the draft under RCW 62A.3-414 or
62A.3-415.
(b) If the certification of a check or other acceptance of a
draft states the amount certified or accepted, the obligation of
the acceptor is that amount. If (i) the certification or acceptance does not state an amount, (ii) the amount of the instrument is subsequently raised, and (iii) the instrument is then
negotiated to a holder in due course, the obligation of the
acceptor is the amount of the instrument at the time it was
taken by the holder in due course. [1993 c 229 § 53; 1965
ex.s. c 157 § 3-413. Cf. former RCW sections: RCW
62.01.060 through 62.01.062; 1955 c 35 §§ 62.01.060
through 62.01.062; prior: 1899 c 149 §§ 60 through 62; RRS
§§ 3451 through 3453.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-414
62A.3-414 Obligation of drawer. (a) This section does
not apply to cashier's checks or other drafts drawn on the
drawer.
(b) If an unaccepted draft is dishonored, the drawer is
obliged to pay the draft (i) according to its terms at the time it
was issued or, if not issued, at the time it first came into possession of a holder, or (ii) if the drawer signed an incomplete
instrument, according to its terms when completed, to the
extent stated in RCW 62A.3-115 and 62A.3-407. The obligation is owed to a person entitled to enforce the draft or to an
indorser who paid the draft under RCW 62A.3-415.
(c) If a draft is accepted by a bank, the drawer is discharged, regardless of when or by whom acceptance was
obtained.
(d) If a draft is accepted and the acceptor is not a bank,
the obligation of the drawer to pay the draft if the draft is dishonored by the acceptor is the same as the obligation of an
indorser under RCW 62A.3-415 (a) and (c).
(e) If a draft states that it is drawn "without recourse" or
otherwise disclaims liability of the drawer to pay the draft,
the drawer is not liable under subsection (b) to pay the draft if
the draft is not a check. A disclaimer of the liability stated in
subsection (b) is not effective if the draft is a check.
(f) If (i) a check is not presented for payment or given to
a depositary bank for collection within 30 days after its date,
(ii) the drawee suspends payments after expiration of the 30day period without paying the check, and (iii) because of the
suspension of payments, the drawer is deprived of funds
maintained with the drawee to cover payment of the check,
the drawer to the extent deprived of funds may discharge its
obligation to pay the check by assigning to the person entitled
to enforce the check the rights of the drawer against the
drawee with respect to the funds. [1993 c 229 § 54; 1965
ex.s. c 157 § 3-414. Cf. former RCW sections: (i) RCW
62.01.038; 1955 c 35 § 62.01.038; prior: 1899 c 149 § 38;
RRS § 3429. (ii) RCW 62.01.044; 1955 c 35 § 62.01.044;
prior: 1899 c 149 § 44; RRS § 3435. (iii) RCW 62.01.066
through 62.01.068; 1955 c 35 §§ 62.01.066 through
62.01.068; prior: 1899 c 149 §§ 66 through 68; RRS §§ 3457
through 3459.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
(2004 Ed.)
62A.3-416
62A.3-415
62A.3-415 Obligation of indorser. (a) Subject to subsections (b), (c), (d), and (e) and to RCW 62A.3-419(d), if an
instrument is dishonored, an indorser is obliged to pay the
amount due on the instrument (i) according to the terms of the
instrument at the time it was indorsed, or (ii) if the indorser
indorsed an incomplete instrument, according to its terms
when completed, to the extent stated in RCW 62A.3-115 and
62A.3-407. The obligation of the indorser is owed to a person
entitled to enforce the instrument or to a subsequent indorser
who paid the instrument under this section.
(b) If an indorsement states that it is made "without
recourse" or otherwise disclaims liability of the indorser, the
indorser is not liable under subsection (a) to pay the instrument.
(c) If notice of dishonor of an instrument is required by
RCW 62A.3-503 and notice of dishonor complying with that
section is not given to an indorser, the liability of the indorser
under subsection (a) is discharged.
(d) If a draft is accepted by a bank after an indorsement
is made, the liability of the indorser under subsection (a) is
discharged.
(e) If an indorser of a check is liable under subsection (a)
and the check is not presented for payment, or given to a
depositary bank for collection, within 30 days after the day
the indorsement was made, the liability of the indorser under
subsection (a) is discharged. [1993 c 229 § 55; 1965 ex.s. c
157 § 3-415. Cf. former RCW sections: (i) RCW 62.01.028;
1955 c 35 § 62.01.028; prior: 1899 c 149 § 28; RRS § 3419.
(ii) RCW 62.01.029; 1955 c 35 § 62.01.029; prior: 1899 c
149 § 29; RRS § 3420. (iii) RCW 62.01.064; 1955 c 35 §
62.01.064; prior: 1899 c 149 § 64; RRS § 3455.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-416
62A.3-416 Transfer warranties. (a) A person who
transfers an instrument for consideration warrants to the
transferee and, if the transfer is by indorsement, to any subsequent transferee that:
(1) The warrantor is a person entitled to enforce the
instrument;
(2) All signatures on the instrument are authentic and
authorized;
(3) The instrument has not been altered;
(4) The instrument is not subject to a defense or claim in
recoupment of any party which can be asserted against the
warrantor; and
(5) The warrantor has no knowledge of any insolvency
proceeding commenced with respect to the maker or acceptor
or, in the case of an unaccepted draft, the drawer.
(b) A person to whom the warranties under subsection
(a) are made and who took the instrument in good faith may
recover from the warrantor as damages for breach of warranty an amount equal to the loss suffered as a result of the
breach, but not more than the amount of the instrument plus
expenses and loss of interest incurred as a result of the
breach.
(c) The warranties stated in subsection (a) cannot be disclaimed with respect to checks. Unless notice of a claim for
breach of warranty is given to the warrantor within 30 days
after the claimant has reason to know of the breach and the
identity of the warrantor, the liability of the warrantor under
[Title 62A RCW—page 59]
62A.3-417
Title 62A RCW: Uniform Commercial Code
subsection (b) is discharged to the extent of any loss caused
by the delay in giving notice of the claim.
(d) A cause of action for breach of warranty under this
section accrues when the claimant has reason to know of the
breach. [1993 c 229 § 56; 1965 ex.s. c 157 § 3-416.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-417
62A.3-417 Presentment warranties. (a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the person
obtaining payment or acceptance, at the time of presentment,
and (ii) a previous transferor of the draft, at the time of transfer, warrant to the drawee making payment or accepting the
draft in good faith that:
(1) The warrantor is, or was, at the time the warrantor
transferred the draft, a person entitled to enforce the draft or
authorized to obtain payment or acceptance of the draft on
behalf of a person entitled to enforce the draft;
(2) The draft has not been altered; and
(3) The warrantor has no knowledge that the signature of
the drawer of the draft is unauthorized.
(b) A drawee making payment may recover from any
warrantor damages for breach of warranty equal to the
amount paid by the drawee less the amount the drawee
received or is entitled to receive from the drawer because of
the payment. In addition, the drawee is entitled to compensation for expenses and loss of interest resulting from the
breach. The right of the drawee to recover damages under this
subsection is not affected by any failure of the drawee to
exercise ordinary care in making payment. If the drawee
accepts the draft, breach of warranty is a defense to the obligation of the acceptor. If the acceptor makes payment with
respect to the draft, the acceptor is entitled to recover from
any warrantor for breach of warranty the amounts stated in
this subsection.
(c) If a drawee asserts a claim for breach of warranty
under subsection (a) based on an unauthorized indorsement
of the draft or an alteration of the draft, the warrantor may
defend by proving that the indorsement is effective under
RCW 62A.3-404 or 62A.3-405 or the drawer is precluded
under RCW 62A.3-406 or 62A.4-406 from asserting against
the drawee the unauthorized indorsement or alteration.
(d) If (i) a dishonored draft is presented for payment to
the drawer or an indorser or (ii) any other instrument is presented for payment to a party obliged to pay the instrument,
and (iii) payment is received, the following rules apply:
(1) The person obtaining payment and a prior transferor
of the instrument warrant to the person making payment in
good faith that the warrantor is, or was, at the time the warrantor transferred the instrument, a person entitled to enforce
the instrument or authorized to obtain payment on behalf of a
person entitled to enforce the instrument.
(2) The person making payment may recover from any
warrantor for breach of warranty an amount equal to the
amount paid plus expenses and loss of interest resulting from
the breach.
(e) The warranties stated in subsections (a) and (d) cannot be disclaimed with respect to checks. Unless notice of a
claim for breach of warranty is given to the warrantor within
30 days after the claimant has reason to know of the breach
[Title 62A RCW—page 60]
and the identity of the warrantor, the liability of the warrantor
under subsection (b) or (d) is discharged to the extent of any
loss caused by the delay in giving notice of the claim.
(f) A cause of action for breach of warranty under this
section accrues when the claimant has reason to know of the
breach. [1993 c 229 § 57; 1965 ex.s. c 157 § 3-417. Cf.
former RCW sections: (i) RCW 62.01.065; 1955 c 35 §
62.01.065; prior: 1899 c 149 § 65; RRS § 3456. (ii) RCW
62.01.066; 1955 c 35 § 62.01.066; prior: 1899 c 149 § 66;
RRS § 3457. (iii) RCW 62.01.069; 1955 c 35 § 62.01.069;
prior: 1899 c 149 § 69; RRS § 3460.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-418
62A.3-418 Payment or acceptance by mistake. (a)
Except as provided in subsection (c), if the drawee of a draft
pays or accepts the draft and the drawee acted on the mistaken belief that (i) payment of the draft had not been stopped
pursuant to RCW 62A.4-403 or (ii) the signature of the
drawer of the draft was authorized, the drawee may recover
the amount of the draft from the person to whom or for whose
benefit payment was made or, in the case of acceptance, may
revoke the acceptance. Rights of the drawee under this subsection are not affected by failure of the drawee to exercise
ordinary care in paying or accepting the draft.
(b) Except as provided in subsection (c), if an instrument
has been paid or accepted by mistake and the case is not covered by subsection (a), the person paying or accepting may, to
the extent permitted by the law governing mistake and restitution, (i) recover the payment from the person to whom or
for whose benefit payment was made or (ii) in the case of
acceptance, may revoke the acceptance.
(c) The remedies provided by subsection (a) or (b) may
not be asserted against a person who took the instrument in
good faith and for value or who in good faith changed position in reliance on the payment or acceptance. This subsection does not limit remedies provided by RCW 62A.3-417 or
62A.4-407.
(d) Notwithstanding RCW 62A.4-213, if an instrument
is paid or accepted by mistake and the payor or acceptor
recovers payment or revokes acceptance under subsection (a)
or (b), the instrument is deemed not to have been paid or
accepted and is treated as dishonored, and the person from
whom payment is recovered has rights as a person entitled to
enforce the dishonored instrument. [1993 c 229 § 58; 1965
ex.s. c 157 § 3-418. Cf. former RCW 62.01.062; 1955 c 35 §
62.01.062; prior: 1899 c 149 § 62; RRS § 3453.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-419
62A.3-419 Instruments signed for accommodation.
(a) If an instrument is issued for value given for the benefit of
a party to the instrument ("accommodated party") and
another party to the instrument ("accommodation party")
signs the instrument for the purpose of incurring liability on
the instrument without being a direct beneficiary of the value
given for the instrument, the instrument is signed by the
accommodation party "for accommodation."
(b) An accommodation party may sign the instrument as
maker, drawer, acceptor, or indorser and, subject to subsection (d), is obliged to pay the instrument in the capacity in
(2004 Ed.)
Negotiable Instruments
which the accommodation party signs. The obligation of an
accommodation party may be enforced notwithstanding any
statute of frauds and whether or not the accommodation party
receives consideration for the accommodation.
(c) A person signing an instrument is presumed to be an
accommodation party and there is notice that the instrument
is signed for accommodation if the signature is an anomalous
indorsement or is accompanied by words indicating that the
signer is acting as surety or guarantor with respect to the obligation of another party to the instrument. Except as provided
in RCW 62A.3-605, the obligation of an accommodation
party to pay the instrument is not affected by the fact that the
person enforcing the obligation had notice when the instrument was taken by that person that the accommodation party
signed the instrument for accommodation.
(d) If the signature of a party to an instrument is accompanied by words indicating unambiguously that the party is
guaranteeing collection rather than payment of the obligation
of another party to the instrument, the signer is obliged to pay
the amount due on the instrument to a person entitled to
enforce the instrument only if (i) execution of judgment
against the other party has been returned unsatisfied, (ii) the
other party is insolvent or in an insolvency proceeding, (iii)
the other party cannot be served with process, or (iv) it is otherwise apparent that payment cannot be obtained from the
other party.
(e) An accommodation party who pays the instrument is
entitled to reimbursement from the accommodated party and
is entitled to enforce the instrument against the accommodated party. An accommodated party who pays the instrument has no right of recourse against, and is not entitled to
contribution from, an accommodation party. [1993 c 229 §
59; 1965 ex.s. c 157 § 3-419. Cf. former RCW 62.01.137;
1955 c 35 § 62.01.137; prior: 1899 c 149 § 137; RRS §
3527.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-420
62A.3-420 Conversion of instrument. (a) The law
applicable to conversion of personal property applies to
instruments. An instrument is also converted if it is taken by
transfer, other than a negotiation, from a person not entitled
to enforce the instrument or a bank makes or obtains payment
with respect to the instrument for a person not entitled to
enforce the instrument or receive payment. An action for conversion of an instrument may not be brought by (i) the issuer
or acceptor of the instrument or (ii) a payee or indorsee who
did not receive delivery of the instrument either directly or
through delivery to an agent or a co-payee.
(b) In an action under subsection (a), the measure of liability is presumed to be the amount payable on the instrument, but recovery may not exceed the amount of the plaintiff's interest in the instrument.
(c) A representative, other than a depositary bank, who
has in good faith dealt with an instrument or its proceeds on
behalf of one who was not the person entitled to enforce the
instrument is not liable in conversion to that person beyond
the amount of any proceeds that it has not paid out. [1993 c
229 § 60.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
(2004 Ed.)
62A.3-502
62A.3-501
62A.3-501 Presentment. (a) "Presentment" means a
demand made by or on behalf of a person entitled to enforce
an instrument (i) to pay the instrument made to the drawee or
a party obliged to pay the instrument or, in the case of a note
or accepted draft payable at a bank, to the bank, or (ii) to
accept a draft made to the drawee.
(b) The following rules are subject to Article 4, agreement of the parties, and clearinghouse rules and the like:
(1) Presentment may be made at the place of payment of
the instrument and must be made at the place of payment if
the instrument is payable at a bank in the United States; may
be made by any commercially reasonable means, including
an oral, written, or electronic communication; is effective
when the demand for payment or acceptance is received by
the person to whom presentment is made; and is effective if
made to any one of two or more makers, acceptors, drawees,
or other payors.
(2) Upon demand of the person to whom presentment is
made, the person making presentment must (i) exhibit the
instrument, (ii) give reasonable identification and, if presentment is made on behalf of another person, reasonable evidence of authority to do so, and (iii) sign a receipt on the
instrument for any payment made or surrender the instrument
if full payment is made.
(3) Without dishonoring the instrument, the party to
whom presentment is made may (i) return the instrument for
lack of a necessary indorsement, or (ii) refuse payment or
acceptance for failure of the presentment to comply with the
terms of the instrument, an agreement of the parties, or other
applicable law or rule.
(4) The party to whom presentment is made may treat
presentment as occurring on the next business day after the
day of presentment if the party to whom presentment is made
has established a cut-off hour not earlier than 2:00 p.m. for
the receipt and processing of instruments presented for payment or acceptance and presentment is made after the cut-off
hour. [1993 c 229 § 61; 1965 ex.s. c 157 § 3-501. Cf. former
RCW sections: RCW 62.01.070, 62.01.089, 62.01.118,
62.01.129, 62.01.143, 62.01.144, 62.01.150, 62.01.151,
62.01.152, 62.01.157, 62.01.158, and 62.01.186; 1955 c 35
§§ 62.01.070, 62.01.089, 62.01.118, 62.01.129, 62.01.143,
62.01.144, 62.01.150, 62.01.151, 62.01.152, 62.01.157,
62.01.158, and 62.01.186; prior: 1899 c 149 §§ 70, 89, 118,
129, 143, 144, 150, 151, 152, 157, 158, and 186; RRS §§
3461, 3479, 3508, 3519, 3533, 3534, 3540, 3541, 3542, 3547,
3548, and 3576.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-502
62A.3-502 Dishonor. (a) Dishonor of a note is governed by the following rules:
(1) If the note is payable on demand, the note is dishonored if presentment is duly made to the maker and the note is
not paid on the day of presentment.
(2) If the note is not payable on demand and is payable at
or through a bank or the terms of the note require presentment, the note is dishonored if presentment is duly made and
the note is not paid on the day it becomes payable or the day
of presentment, whichever is later.
[Title 62A RCW—page 61]
62A.3-503
Title 62A RCW: Uniform Commercial Code
(3) If the note is not payable on demand and subsection
(a)(2) does not apply, the note is dishonored if it is not paid on
the day it becomes payable.
(b) Dishonor of an unaccepted draft other than a documentary draft is governed by the following rules:
(1) If a check is duly presented for payment to the payor
bank otherwise than for immediate payment over the counter,
the check is dishonored if the payor bank makes timely return
of the check or sends timely notice of dishonor or nonpayment under RCW 62A.4-301 or 62A.4-302, or becomes
accountable for the amount of the check under RCW
62A.4-302.
(2) If a draft is payable on demand and subsection (b)(1)
does not apply, the draft is dishonored if presentment for payment is duly made to the drawee and the draft is not paid on
the day of presentment.
(3) If a draft is payable on a date stated in the draft, the
draft is dishonored if (i) presentment for payment is duly
made to the drawee and payment is not made on the day the
draft becomes payable or the day of presentment, whichever
is later, or (ii) presentment for acceptance is duly made
before the day the draft becomes payable and the draft is not
accepted on the day of presentment.
(4) If a draft is payable on elapse of a period of time after
sight or acceptance, the draft is dishonored if presentment for
acceptance is duly made and the draft is not accepted on the
day of presentment.
(c) Dishonor of an unaccepted documentary draft occurs
according to the rules stated in subsection (b) (2), (3), and (4),
except that payment or acceptance may be delayed without
dishonor until no later than the close of the third business day
of the drawee following the day on which payment or acceptance is required by subsection (b) (2), (3), and (4).
(d) Dishonor of an accepted draft is governed by the following rules:
(1) If the draft is payable on demand, the draft is dishonored if presentment for payment is duly made to the acceptor
and the draft is not paid on the day of presentment; or
(2) If the draft is not payable on demand, the draft is dishonored if presentment for payment is duly made to the
acceptor and payment is not made on the day it becomes payable or the day of presentment, whichever is later.
(e) In any case in which presentment is otherwise
required for dishonor under this section and presentment is
excused under RCW 62A.3-504, dishonor occurs without
presentment if the instrument is not duly accepted or paid.
(f) If a draft is dishonored because timely acceptance of
the draft was not made and the person entitled to demand
acceptance consents to a late acceptance, from the time of
acceptance the draft is treated as never having been dishonored. [1993 c 229 § 62; 1965 ex.s. c 157 § 3-502. Cf. former
RCW sections: RCW 62.01.007, 62.01.070, 62.01.089,
62.01.144, 62.01.150, 62.01.152, and 62.01.186; 1955 c 35
§§ 62.01.007, 62.01.070, 62.01.089, 62.01.144, 62.01.150,
62.01.152, and 62.01.186; prior: 1899 c 149 §§ 7, 70, 89,
144, 150, 152, and 186; RRS §§ 3398, 3461, 3479, 3534,
3540, 3542, and 3576.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
[Title 62A RCW—page 62]
62A.3-503
62A.3-503 Notice of dishonor. (a) The obligation of an
indorser stated in RCW 62A.3-415(a) and the obligation of a
drawer stated in RCW 62A.3-414(d) may not be enforced
unless (i) the indorser or drawer is given notice of dishonor of
the instrument complying with this section or (ii) notice of
dishonor is excused under RCW 62A.3-504(b).
(b) Notice of dishonor may be given by any person; may
be given by any commercially reasonable means, including
an oral, written, or electronic communication; and is sufficient if it reasonably identifies the instrument and indicates
that the instrument has been dishonored or has not been paid
or accepted. Return of an instrument given to a bank for collection is sufficient notice of dishonor.
(c) Subject to RCW 62A.3-504(c), with respect to an
instrument taken for collection by a collecting bank, notice of
dishonor must be given (i) by the bank before midnight of the
next banking day following the banking day on which the
bank receives notice of dishonor of the instrument, or (ii) by
any other person within 30 days following the day on which
the person receives notice of dishonor. With respect to any
other instrument, notice of dishonor must be given within 30
days following the day on which dishonor occurs. [1993 c
229 § 63; 1965 ex.s. c 157 § 3-503. Cf. former RCW sections:
(i) RCW 62.01.071, 62.01.072, 62.01.075, 62.01.086,
62.01.144, 62.01.145, 62.01.146, 62.01.186, and 62.01.193;
1955 c 35 §§ 62.01.071, 62.01.072, 62.01.075, 62.01.086,
62.01.144, 62.01.145, 62.01.146, 62.01.186, and 62.01.193;
prior: 1899 c 149 §§ 71, 72, 75, 86, 144, 145, 146, 186, and
193; RRS §§ 3462, 3463, 3466, 3476, 3534, 3535, 3536,
3576, and 3583. (ii) RCW 62.01.085; 1955 c 35 § 62.01.085;
prior: 1915 c 173 § 1; 1899 c 149 § 85; RRS § 3475 1/2.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-504
62A.3-504 Excused presentment and notice of dishonor. (a) Presentment for payment or acceptance of an
instrument is excused if (i) the person entitled to present the
instrument cannot with reasonable diligence make presentment, (ii) the maker or acceptor has repudiated an obligation
to pay the instrument or is dead or in insolvency proceedings,
(iii) by the terms of the instrument presentment is not necessary to enforce the obligation of indorsers or the drawer, (iv)
the drawer or indorser whose obligation is being enforced has
waived presentment or otherwise has no reason to expect or
right to require that the instrument be paid or accepted, or (v)
the drawer instructed the drawee not to pay or accept the draft
or the drawee was not obligated to the drawer to pay the draft.
(b) Notice of dishonor is excused if (i) by the terms of the
instrument notice of dishonor is not necessary to enforce the
obligation of a party to pay the instrument, or (ii) the party
whose obligation is being enforced waived notice of dishonor. A waiver of presentment is also a waiver of notice of
dishonor.
(c) Delay in giving notice of dishonor is excused if the
delay was caused by circumstances beyond the control of the
person giving the notice and the person giving the notice
exercised reasonable diligence after the cause of the delay
ceased to operate. [1993 c 229 § 64; 1965 ex.s. c 157 § 3504. Cf. former RCW sections: RCW 62.01.072, 62.01.073,
62.01.077, 62.01.078, and 62.01.145; 1955 c 35 §§
62.01.072, 62.01.073, 62.01.077, 62.01.078, and 62.01.145;
(2004 Ed.)
Negotiable Instruments
prior: 1899 c 149 §§ 72, 73, 77, 78, and 145; RRS §§ 3463,
3464, 3468, 3469, and 3535.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-505
62A.3-505 Evidence of dishonor. (a) The following
are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated:
(1) A document regular in form as provided in subsection (b) that purports to be a protest;
(2) A purported stamp or writing of the drawee, payor
bank, or presenting bank on or accompanying the instrument
stating that acceptance or payment has been refused unless
reasons for the refusal are stated and the reasons are not consistent with dishonor;
(3) A book or record of the drawee, payor bank, or collecting bank, kept in the usual course of business which
shows dishonor, even if there is no evidence of who made the
entry.
(b) A protest is a certificate of dishonor made by a
United States consul or vice-consul, or a notary public or
other person authorized to administer oaths by the law of the
place where dishonor occurs. It may be made upon information satisfactory to that person. The protest must identify the
instrument and certify either that presentment has been made
or, if not made, the reason why it was not made, and that the
instrument has been dishonored by nonacceptance or nonpayment. The protest may also certify that notice of dishonor has
been given to some or all parties. [1993 c 229 § 65; 1965
ex.s. c 157 § 3-505. Cf. former RCW sections: (i) RCW
62.01.072(3); 1955 c 35 § 62.01.072; prior: 1899 c 149 § 72;
RRS § 3463. (ii) RCW 62.01.074; 1955 c 35 § 62.01.074;
prior: 1899 c 149 § 74; RRS § 3465. (iii) RCW 62.01.133;
1955 c 35 § 62.01.133; prior: 1899 c 149 § 133; RRS §
3523.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-512
62A.3-512 Credit cards—As identification—In lieu
of deposit. A person may not record the number of a credit
card given as identification under *RCW 62A.3-501(a)(2) or
given as proof of credit worthiness when payment for goods
or services is made by check or draft. Nothing in this section
prohibits the recording of the number of a credit card given in
lieu of a deposit to secure payment in the event of a default,
loss, damage, or other occurrence. [1993 c 229 § 66; 1990 c
203 § 2.]
*Reviser's note: The reference to RCW 62A.3-501(a)(2) appears erroneous. Reference to RCW 62A.3-501(b)(2) was apparently intended.
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-515
62A.3-515 Checks dishonored by nonacceptance or
nonpayment; liability for interest; rate; collection costs
and attorneys' fees; satisfaction of claim. (a) If a check as
defined in RCW 62A.3-104 is dishonored by nonacceptance
or nonpayment, the payee or person entitled to enforce the
check under RCW 62A.3-301 may collect a reasonable handling fee for each instrument. If the check is not paid within
fifteen days and after the person entitled to enforce the check
or the person's agent sends a notice of dishonor as provided
(2004 Ed.)
62A.3-520
by RCW 62A.3-520 to the drawer at the drawer's last known
address, and if the instrument does not provide for the payment of interest or collection costs and attorneys' fees, the
drawer of the instrument is liable for payment of interest at
the rate of twelve percent per annum from the date of dishonor, and cost of collection not to exceed forty dollars or the
face amount of the check, whichever is less, payable to the
person entitled to enforce the check. In addition, in the event
of court action on the check, the court, after notice and the
expiration of the fifteen days, shall award reasonable attorneys' fees, and three times the face amount of the check or
three hundred dollars, whichever is less, as part of the damages payable to the person enforcing the check. This section
does not apply to an instrument that is dishonored by reason
of a justifiable stop payment order.
(b)(1) Subsequent to the commencement of an action on
the check (subsection (a)) but prior to the hearing, the defendant may tender to the plaintiff as satisfaction of the claim, an
amount of money equal to the face amount of the check, a
reasonable handling fee, accrued interest, collection costs
equal to the face amount of the check not to exceed forty dollars, and the incurred court costs, service costs, and statutory
attorneys' fees.
(2) Nothing in this section precludes the right to commence action in a court under chapter 12.40 RCW for small
claims. [2000 c 215 § 1; 1995 c 187 § 1; 1993 c 229 § 67;
1991 c 168 § 1; 1986 c 128 § 1; 1981 c 254 § 1; 1969 c 62 §
1; 1967 ex.s. c 23 § 1.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
Savings—Severability—1967 ex.s. c 23: See notes following RCW
19.52.005.
62A.3-520
62A.3-520 Statutory form for notice of dishonor. The
notice of dishonor shall be sent by mail to the drawer at the
drawer's last known address, and the notice shall be substantially in the following form:
NOTICE OF DISHONOR OF CHECK
A check drawn by you and made payable by you to
. . . . . . in the amount of . . . . . . has not been accepted for
payment by . . . . . ., which is the drawee bank designated on
your check. This check is dated . . . . . ., and it is numbered,
No. . . . . . ..
You are CAUTIONED that unless you pay the amount
of this check within fifteen days after the date this letter is
postmarked, you may very well have to pay the following
additional amounts:
(1) Costs of collecting the amount of the check, including an attorney's fee which will be set by the court;
(2) Interest on the amount of the check which shall
accrue at the rate of twelve percent per annum from the date
of dishonor; and
(3) Three hundred dollars or three times the face amount
of the check, whichever is less, by award of the court.
You are also CAUTIONED that law enforcement agencies may be provided with a copy of this notice of dishonor
and the check drawn by you for the possibility of proceeding
with criminal charges if you do not pay the amount of this
check within fifteen days after the date this letter is postmarked.
[Title 62A RCW—page 63]
62A.3-522
Title 62A RCW: Uniform Commercial Code
You are advised to make your payment to . . . . . . at the
following address: . . . . . . . . . .
[1993 c 229 § 68; 1991 c 168 § 2; 1986 c 128 § 2; 1981 c 254
§ 2; 1969 c 62 § 2.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-522
62A.3-522 Notice of dishonor—Affidavit of service
by mail. In addition to sending a notice of dishonor to the
drawer of the check under RCW 62A.3-520, the person sending notice shall execute an affidavit certifying service of the
notice by mail. The affidavit of service by mail must be
attached to a copy of the notice of dishonor and must be substantially in the following form:
AFFIDAVIT OF SERVICE BY MAIL
I, . . . . . ., hereby certify that on the . . . . . . day of
. . . . . ., 20. . ., a copy of the foregoing Notice was served on
. . . . . . by mailing via the United States Postal Service, postage prepaid, at . . . . . ., Washington.
Dated:. . . . . . . . . . . . . . . .
(Signature)
The person enforcing the check shall retain the affidavit
with the check but shall file a copy of the affidavit with the
clerk of the court in which an action on the check is commenced. [2000 c 215 § 2; 1993 c 229 § 69; 1981 c 254 § 3.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-525
62A.3-525 Consequences for failing to comply with
requirements. No interest, collection costs, and attorneys'
fees, except handling fees, are recoverable on any dishonored
check under the provisions of RCW 62A.3-515 where a person entitled to such recovery or any agent, employee, or
assign has demanded:
(1) Interest or collection costs in excess of that provided
by RCW 62A.3-515; or
(2) Interest or collection costs prior to the expiration of
fifteen days after the mailing of notice of dishonor, as provided by RCW 62A.3-515 and 62A.3-520; or
(3) Attorneys' fees either without having the fees set by
the court, or prior to the expiration of fifteen days after the
mailing of notice of dishonor, as provided by RCW 62A.3515 and 62A.3-520. [2000 c 215 § 3; 1993 c 229 § 70; 1981
c 254 § 4; 1969 c 62 § 3.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-601
62A.3-601 Discharge and effect of discharge. (a) The
obligation of a party to pay the instrument is discharged as
stated in this Article or by an act or agreement with the party
which would discharge an obligation to pay money under a
simple contract.
(b) Discharge of the obligation of a party is not effective
against a person acquiring rights of a holder in due course of
the instrument without notice of the discharge. [1993 c 229 §
71; 1965 ex.s. c 157 § 3-601. Cf. former RCW sections:
RCW 62.01.119 through 62.01.121; 1955 c 35 §§ 62.01.119
[Title 62A RCW—page 64]
through 62.01.121; prior: 1899 c 149 §§ 119 through 121;
RRS §§ 3509 through 3511.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-602
62A.3-602 Payment. (a) Subject to subsection (b), an
instrument is paid to the extent payment is made (i) by or on
behalf of a party obliged to pay the instrument, and (ii) to a
person entitled to enforce the instrument. To the extent of the
payment, the obligation of the party obliged to pay the instrument is discharged even though payment is made with
knowledge of a claim to the instrument under RCW
62A.3-306 by another person.
(b) The obligation of a party to pay the instrument is not
discharged under subsection (a) if:
(1) A claim to the instrument under RCW 62A.3-306 is
enforceable against the party receiving payment and (i) payment is made with knowledge by the payor that payment is
prohibited by injunction or similar process of a court of competent jurisdiction, or (ii) in the case of an instrument other
than a cashier's check, teller's check, or certified check, the
party making payment accepted, from the person having a
claim to the instrument, indemnity against loss resulting from
refusal to pay the person entitled to enforce the instrument; or
(2) The person making payment knows that the instrument is a stolen instrument and pays a person it knows is in
wrongful possession of the instrument. [1993 c 229 § 72;
1965 ex.s. c 157 § 3-602. Cf. former RCW 62.01.122; 1955 c
35 § 62.01.122; prior: 1899 c 149 § 122; RRS § 3512.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-603
62A.3-603 Tender of payment. (a) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is
governed by principles of law applicable to tender of payment under a simple contract.
(b) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument
and the tender is refused, there is discharge, to the extent of
the amount of the tender, of the obligation of an indorser or
accommodation party having a right of recourse with respect
to the obligation to which the tender relates.
(c) If tender of payment of an amount due on an instrument is made to a person entitled to enforce the instrument,
the obligation of the obligor to pay interest after the due date
on the amount tendered is discharged. If presentment is
required with respect to an instrument and the obligor is able
and ready to pay on the due date at every place of payment
stated in the instrument, the obligor is deemed to have made
tender of payment on the due date to the person entitled to
enforce the instrument. [1993 c 229 § 73; 1965 ex.s. c 157 §
3-603. Cf. former RCW sections: (i) RCW 62.01.051,
62.01.088, 62.01.119, and 62.01.121; 1955 c 35 §§
62.01.051, 62.01.088, 62.01.119, and 62.01.121; prior: 1899
c 149 §§ 51, 88, 119, and 121; RRS §§ 3442, 3478, 3509, and
3511. (ii) RCW 62.01.171 through 62.01.177; 1955 c 35 §§
62.01.171 through 62.01.177; prior: 1899 c 149 §§ 171
through 177; RRS §§ 3561 through 3567. (iii) Subd. (3) cf.
former RCW 30.20.090; 1961 c 280 § 4.]
(2004 Ed.)
Bank Deposits and Collections
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-604
62A.3-604 Discharge by cancellation or renunciation. (a) A person entitled to enforce an instrument, with or
without consideration, may discharge the obligation of a
party to pay the instrument (i) by an intentional voluntary act,
such as surrender of the instrument to the party, destruction,
mutilation, or cancellation of the instrument, cancellation or
striking out of the party's signature, or the addition of words
to the instrument indicating discharge, or (ii) by agreeing not
to sue or otherwise renouncing rights against the party by a
signed writing.
(b) Cancellation or striking out of an indorsement pursuant to subsection (a) does not affect the status and rights of a
party derived from the indorsement. [1993 c 229 § 74; 1965
ex.s. c 157 § 3-604. Cf. former RCW sections: (i) RCW
62.01.070; 1955 c 35 § 62.01.070; prior: 1899 c 149 § 70;
RRS § 3461. (ii) RCW 62.01.120; 1955 c 35 § 62.01.120;
prior: 1899 c 149 § 120; RRS § 3510.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.3-605
62A.3-605 Discharge of indorsers and accommodation parties. (a) In this section, the term "indorser" includes
a drawer h aving the o bligation described in RCW
62A.3-414(d).
(b) Discharge, under RCW 62A.3-604, of the obligation
of a party to pay an instrument does not discharge the obligation of an indorser or accommodation party having a right of
recourse against the discharged party.
(c) If a person entitled to enforce an instrument agrees,
with or without consideration, to an extension of the due date
of the obligation of a party to pay the instrument, the extension discharges an indorser or accommodation party having a
right of recourse against the party whose obligation is
extended to the extent the indorser or accommodation party
proves that the extension caused loss to the indorser or
accommodation party with respect to the right of recourse.
(d) If a person entitled to enforce an instrument agrees,
with or without consideration, to a material modification of
the obligation of a party other than an extension of the due
date, the modification discharges the obligation of an
indorser or accommodation party having a right of recourse
against the person whose obligation is modified to the extent
the modification causes loss to the indorser or accommodation party with respect to the right of recourse. The loss suffered by the indorser or accommodation party as a result of
the modification is equal to the amount of the right of
recourse unless the person enforcing the instrument proves
that no loss was caused by the modification or that the loss
caused by the modification was an amount less than the
amount of the right of recourse.
(e) If the obligation of a party to pay an instrument is
secured by an interest in collateral and a person entitled to
enforce the instrument impairs the value of the interest in collateral, the obligation of an indorser or accommodation party
having a right of recourse against the obligor is discharged to
the extent of the impairment. The value of an interest in collateral is impaired to the extent (i) the value of the interest is
reduced to an amount less than the amount of the right of
(2004 Ed.)
Article 4
recourse of the party asserting discharge, or (ii) the reduction
in value of the interest causes an increase in the amount by
which the amount of the right of recourse exceeds the value
of the interest. The burden of proving impairment is on the
party asserting discharge.
(f) If the obligation of a party is secured by an interest in
collateral not provided by an accommodation party and a person entitled to enforce the instrument impairs the value of the
interest in collateral, the obligation of any party who is jointly
and severally liable with respect to the secured obligation is
discharged to the extent the impairment causes the party
asserting discharge to pay more than that party would have
been obliged to pay, taking into account rights of contribution, if impairment had not occurred. If the party asserting
discharge is an accommodation party not entitled to discharge under subsection (e), the party is deemed to have a
right to contribution based on joint and several liability rather
than a right to reimbursement. The burden of proving impairment is on the party asserting discharge.
(g) Under subsection (e) or (f), impairing value of an
interest in collateral includes (i) failure to obtain or maintain
perfection or recordation of the interest in collateral, (ii)
release of collateral without substitution of collateral of equal
value, (iii) failure to perform a duty to preserve the value of
collateral owed, under *Article 9 or other law, to a debtor or
surety or other person secondarily liable, or (iv) failure to
comply with applicable law in disposing of collateral.
(h) An accommodation party is not discharged under
subsection (c), (d), or (e) unless the person entitled to enforce
the instrument knows of the accommodation or has notice
under RCW 62A.3-419(c) that the instrument was signed for
accommodation.
(i) A party is not discharged under this section if (i) the
party asserting discharge consents to the event or conduct
that is the basis of the discharge, or (ii) the instrument or a
separate agreement of the party provides for waiver of discharge under this section either specifically or by general language indicating that parties waive defenses based on suretyship or impairment of collateral. [1993 c 229 § 75; 1965 ex.s.
c 157 § 3-605. Cf. former RCW sections: RCW 62.01.048,
62.01.119(3), 62.01.120(2), 62.01.122, and 62.01.123; 1955
c 35 §§ 62.01.048, 62.01.119, 62.01.120, 62.01.122, and
62.01.123; prior: 1899 c 149 §§ 48, 119, 120, 122, and 123;
RRS §§ 3439, 3509, 3510, 3512, and 3513.]
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001. For later enactment, see Article
62A.9A RCW.
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
Article 4
Article 4
BANK DEPOSITS AND COLLECTIONS
Sections
PART 1
GENERAL PROVISIONS AND DEFINITIONS
62A.4-101
62A.4-102
62A.4-103
62A.4-104
Short title.
Applicability.
Variation by agreement; measure of damages; action constituting ordinary care.
Definitions and index of definitions.
[Title 62A RCW—page 65]
62A.4-101
62A.4-105
62A.4-106
62A.4-107
62A.4-108
62A.4-109
62A.4-110
62A.4-111
Title 62A RCW: Uniform Commercial Code
"Bank"; "depositary bank"; "payor bank"; "intermediary
bank"; "collecting bank"; "presenting bank".
Payable through or payable at bank; collecting bank.
Separate office of a bank.
Time of receipt of items.
Delays.
Electronic presentment.
Statute of limitations.
PART 2
COLLECTION OF ITEMS: DEPOSITORY
AND COLLECTING BANKS
62A.4-201
62A.4-202
62A.4-203
62A.4-204
62A.4-205
62A.4-206
62A.4-207
62A.4-208
62A.4-209
62A.4-210
62A.4-211
62A.4-212
62A.4-213
62A.4-214
62A.4-215
62A.4-216
Status of collecting bank as agent and provisional status of
credits; applicability of article; item indorsed "pay any
bank".
Responsibility for collection or return; when action timely.
Effect of instructions.
Methods of sending and presenting; sending directly to payor
bank.
Depositary bank holder of unindorsed item.
Transfer between banks.
Transfer warranties.
Presentment warranties.
Encoding and retention warranties.
Security interest of collecting bank in items, accompanying
documents and proceeds.
When bank gives value for purposes of holder in due course.
Presentment by notice of item not payable by, through, or at a
bank; liability of drawer or indorser.
Medium and time of settlement by bank.
Right of charge-back or refund; liability of collecting bank;
return of item.
Final payment of item by payor bank; when provisional debits
and credits become final; when certain credits become available for withdrawal.
Insolvency and preference.
PART 3
COLLECTION OF ITEMS: PAYOR BANKS
62A.4-301
62A.4-302
62A.4-303
Deferred posting; recovery of payment by return of items; time
of dishonor; return of items by payor bank.
Payor bank's responsibility for late return of item.
When items subject to notice, stop-payment order, legal process, or setoff; order in which items may be charged or certified.
PART 4
RELATIONSHIP BETWEEN PAYOR BANK
AND ITS CUSTOMER
62A.4-401
62A.4-402
62A.4-403
62A.4-404
62A.4-405
62A.4-406
62A.4-407
When bank may charge customer's account.
Bank's liability to customer for wrongful dishonor; time of
determining insufficiency of account.
Customer's right to stop payment; burden of proof of loss.
Bank not obligated to pay check more than six months old.
Death or incompetence of customer.
Customer's duty to discover and report unauthorized signature
or alteration.
Payor bank's right to subrogation on improper payment.
PART 5
COLLECTION OF DOCUMENTARY DRAFTS
62A.4-501
62A.4-502
62A.4-503
62A.4-504
Handling of documentary drafts; duty to send for presentment
and to notify customer of dishonor.
Presentment of "on arrival" drafts.
Responsibility of presenting bank for documents and goods;
report of reasons for dishonor; referee in case of need.
Privilege of presenting bank to deal with goods; security interest for expenses.
Reviser's note: Powers, duties, and functions of the department of general administration relating to financial institutions were transferred to the
department of financial institutions by 1993 c 472, effective October 1, 1993.
See RCW 43.320.011.
62A.4-101
62A.4-101 Short title. This Article may be cited as
Uniform Commercial Code— Bank Deposits and Collections. [1993 c 229 § 77; 1965 ex.s. c 157 § 4-101.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
[Title 62A RCW—page 66]
62A.4-102
62A.4-102 Applicability. (a) To the extent that items
within this Article are also within Articles 3 and 8, they are
subject to those Articles. If there is conflict, this Article governs Article 3, but Article 8 governs this Article.
(b) The liability of a bank for action or non-action with
respect to an item handled by it for purposes of presentment,
payment, or collection is governed by the law of the place
where the bank is located. In the case of action or non-action
by or at a branch or separate office of a bank, its liability is
governed by the law of the place where the branch or separate
office is located. [1993 c 229 § 78; 1965 ex.s. c 157 § 4-102.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-103
62A.4-103 Variation by agreement; measure of damages; action constituting ordinary care. (a) The effect of
the provisions of this Article may be varied by agreement, but
the parties to the agreement cannot disclaim a bank's responsibility for its lack of good faith or failure to exercise ordinary
care or limit the measure of damages for the lack or failure.
However, the parties may determine by agreement the standards by which the bank's responsibility is to be measured if
those standards are not manifestly unreasonable.
(b) Federal Reserve regulations and operating circulars,
clearing-house rules, and the like have the effect of agreements under subsection (a), whether or not specifically
assented to by all parties interested in items handled.
(c) Action or non-action approved by this Article or pursuant to Federal Reserve regulations or operating circulars is
the exercise of ordinary care and, in the absence of special
instructions, action or non-action consistent with clearinghouse rules and the like or with a general banking usage not
disapproved by this Article, is prima facie the exercise of
ordinary care.
(d) The specification or approval of certain procedures
by this Article is not disapproval of other procedures that may
be reasonable under the circumstances.
(e) The measure of damages for failure to exercise ordinary care in handling an item is the amount of the item
reduced by an amount that could not have been realized by
the exercise of ordinary care. If there is also bad faith it
includes any other damages the party suffered as a proximate
consequence. [1993 c 229 § 79; 1965 ex.s. c 157 § 4-103. Cf.
former RCW sections: (i) RCW 30.52.050; 1955 c 33 §
30.52.050; prior: 1931 c 10 § 1; 1929 c 203 § 5; RRS § 32925. (ii) RCW 30.52.060; 1955 c 33 § 30.52.060; prior: 1929 c
203 § 6; RRS § 3292-6.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-104
62A.4-104 Definitions and index of definitions. (a) In
this Article, unless the context otherwise requires:
(1) "Account" means any deposit or credit account with
a bank, including a demand, time, savings, passbook, share
draft, or like account, other than an account evidenced by a
certificate of deposit;
(2) "Afternoon" means the period of a day between noon
and midnight;
(3) "Banking day" means the part of a day on which a
bank is open to the public for carrying on substantially all of
(2004 Ed.)
Bank Deposits and Collections
its banking functions, except that it shall not include a Saturday, Sunday, or legal holiday;
(4) "Clearing house" means an association of banks or
other payors regularly clearing items;
(5) "Customer" means a person having an account with a
bank or for whom a bank has agreed to collect items, including a bank that maintains an account at another bank;
(6) "Documentary draft" means a draft to be presented
for acceptance or payment if specified documents, certificated securities (RCW 62A.8-102) or instructions for uncertificated securities (RCW 62A.8-102), or other certificates,
statements, or the like are to be received by the drawee or
other payor before acceptance or payment of the draft;
(7) "Draft" means a draft as defined in RCW 62A.3-104
or an item, other than an instrument, that is an order;
(8) "Drawee" means a person ordered in a draft to make
payment;
(9) "Item" means an instrument or a promise or order to
pay money handled by a bank for collection or payment. The
term does not include a payment order governed by Article
4A or a credit or debit card slip;
(10) "Midnight deadline" with respect to a bank is midnight on its next banking day following the banking day on
which it receives the relevant item or notice or from which
the time for taking action commences to run, whichever is
later;
(11) "Settle" means to pay in cash, by clearing-house settlement, in a charge or credit or by remittance, or otherwise as
agreed. A settlement may be either provisional or final;
(12) "Suspends payments" with respect to a bank means
that it has been closed by order of the supervisory authorities,
that a public officer has been appointed to take it over or that
it ceases or refuses to make payments in the ordinary course
of business.
(b) Other definitions applying to this Article and the sections in which they appear are:
"Agreement for electronic presentment"
RCW 62A.4-110.
"Bank"
RCW 62A.4-105.
"Collecting bank"
RCW 62A.4-105.
"Depositary bank"
RCW 62A.4-105.
"Intermediary bank"
RCW 62A.4-105.
"Payor bank"
RCW 62A.4-105.
"Presenting bank"
RCW 62A.4-105.
"Presentment notice"
RCW 62A.4-110.
(c) The following definitions in other Articles apply to
this Article:
"Acceptance"
RCW 62A.3-409.
"Alteration"
RCW 62A.3-407.
"Cashier's check"
RCW 62A.3-104.
"Certificate of deposit"
RCW 62A.3-104.
"Certified check"
RCW 62A.3-409.
"Check"
RCW 62A.3-104.
"Draft"
RCW 62A.3-104.
"Good faith"
RCW 62A.3-103.
"Holder in due course"
RCW 62A.3-302.
"Instrument"
RCW 62A.3-104.
"Notice of dishonor"
RCW 62A.3-503.
"Order"
RCW 62A.3-103.
"Ordinary care"
RCW 62A.3-103.
"Person entitled to enforce"
RCW 62A.3-301.
(2004 Ed.)
62A.4-106
"Presentment"
RCW 62A.3-501.
"Promise"
RCW 62A.3-103.
"Prove"
RCW 62A.3-103.
"Teller's check"
RCW 62A.3-104.
"Unauthorized signature"
RCW 62A.3-403.
(d) In addition Article 1 contains general definitions and
principles of construction and interpretation applicable
throughout this Article. [1995 c 48 § 56; 1993 c 229 § 80;
1981 c 122 § 1; 1965 ex.s. c 157 § 4-104. Cf. former RCW
30.52.010; 1955 c 33 § 30.52.010; prior: 1929 c 203 § 1;
RRS § 3292-1.]
Savings—1995 c 48: See RCW 62A.8-601.
Effective date—1995 c 48: See RCW 62A.11-113.
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
Construction—1981 c 122: "Nothing in this 1981 amendatory act shall
be construed to preclude any bank from being open to the public for carrying
on its banking functions on Saturdays or Sundays." [1981 c 122 § 2.] "this
1981 amendatory act" consists of the 1981 amendment to RCW 62A.4-104.
62A.4-105
62A.4-105 "Bank"; "depositary bank"; "payor
bank"; "intermediary bank"; "collecting bank"; "presenting bank". In this Article:
(1) "Bank" means a person engaged in the business of
banking, including a savings bank, savings and loan association, credit union, or trust company;
(2) "Depositary bank" means the first bank to take an
item even though it is also the payor bank, unless the item is
presented for immediate payment over the counter;
(3) "Payor bank" means a bank that is the drawee of a
draft;
(4) "Intermediary bank" means a bank to which an item
is transferred in course of collection except the depositary or
payor bank;
(5) "Collecting bank" means a bank handling the item for
collection except the payor bank;
(6) "Presenting bank" means a bank presenting an item
except a payor bank. [1993 c 229 § 81; 1965 ex.s. c 157 § 4105. Cf. former RCW 30.52.010; 1955 c 33 § 30.52.010;
prior: 1929 c 203 § 1.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-106
62A.4-106 Payable through or payable at bank; collecting bank. (a) If an item states that it is "payable through"
a bank identified in the item, (i) the item designates the bank
as a collecting bank and does not by itself authorize the bank
to pay the item, and (ii) the item may be presented for payment only by or through the bank.
(b) If an item states that it is "payable at" a bank identified in the item, (i) the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the
item, and (ii) the item may be presented for payment only by
or through the bank.
(c) If a draft names a nonbank drawee and it is unclear
whether a bank named in the draft is a codrawee or a collecting bank, the bank is a collecting bank. [1993 c 229 § 82;
1965 ex.s. c 157 § 4-106. Cf. former RCW sections: (i) RCW
30.52.010; 1955 c 33 § 30.52.010; prior: 1929 c 203 § 1;
RRS § 3292-1. (ii) RCW 30.40.030 through 30.40.050; 1955
[Title 62A RCW—page 67]
62A.4-107
Title 62A RCW: Uniform Commercial Code
c 33 §§ 30.40.030 through 30.40.050; prior: 1939 c 59 §§ 1
through 3; RRS §§ 3252-6 through 3252-8.]
ment notice unless the context otherwise indicates. [1993 c
229 § 86.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-107
62A.4-107 Separate office of a bank. A branch or separate office of a bank is a separate bank for the purpose of
computing the time within which and determining the place
at or to which action may be taken or notices or orders must
be given under this Article and under Article 3. [1993 c 229
§ 83; 1965 ex.s. c 157 § 4-107.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-108
62A.4-108 Time of receipt of items. (a) For the purpose of allowing time to process items, prove balances, and
make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of two P.M.
or later as a cut-off hour for the handling of money and items
and the making of entries on its books.
(b) An item or deposit of money received on any day
after a cut-off hour so fixed or after the close of the banking
day may be treated as being received at the opening of the
next banking day. [1993 c 229 § 84; 1965 ex.s. c 157 § 4108.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-109
62A.4-109 Delays. (a) Unless otherwise instructed, a
collecting bank in a good faith effort to secure payment of a
specific item drawn on a payor other than a bank, and with or
without the approval of any person involved, may waive,
modify, or extend time limits imposed or permitted by this
Title for a period not exceeding two additional banking days
without discharge of drawers or indorsers or liability to its
transferor or a prior party.
(b) Delay by a collecting bank or payor bank beyond
time limits prescribed or permitted by this Title or by instructions is excused if (i) the delay is caused by interruption of
communication or computer facilities, suspension of payments by another bank, war, emergency conditions, failure of
equipment, or other circumstances beyond the control of the
bank, and (ii) the bank exercises such diligence as the circumstances require. [1993 c 229 § 85; 1965 ex.s. c 157 § 4109.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-110
62A.4-110 Electronic presentment. (a) "Agreement
for electronic presentment" means an agreement, clearinghouse rule, or Federal Reserve regulation or operating circular, providing that presentment of an item may be made by
transmission of an image of an item or information describing the item ("presentment notice") rather than delivery of the
item itself. The agreement may provide for procedures governing retention, presentment, payment, dishonor, and other
matters concerning items subject to the agreement.
(b) Presentment of an item pursuant to an agreement for
presentment is made when the presentment notice is received.
(c) If presentment is made by presentment notice, a reference to "item" or "check" in this Article means the present[Title 62A RCW—page 68]
62A.4-111
62A.4-111 Statute of limitations. An action to enforce
an obligation, duty, or right arising under this Article must be
commenced within three years after the cause of action
accrues. [1993 c 229 § 87.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-201
62A.4-201 Status of collecting bank as agent and provisional status of credits; applicability of article; item
indorsed "pay any bank". (a) Unless a contrary intent
clearly appears and before the time that a settlement given by
a collecting bank for an item is or becomes final, the bank,
with respect to the item, is an agent or sub-agent of the owner
of the item and any settlement given for the item is provisional. This provision applies regardless of the form of
indorsement or lack of indorsement and even though credit
given for the item is subject to immediate withdrawal as of
right or is in fact withdrawn; but the continuance of ownership of an item by its owner and any rights of the owner to
proceeds of the item are subject to rights of a collecting bank
such as those resulting from outstanding advances on the
item and rights of recoupment or setoff. If an item is handled
by banks for purposes of presentment, payment, collection, or
return, the relevant provisions of this Article apply even
though action of the parties clearly establishes that a particular bank has purchased the item and is the owner of it.
(b) After an item has been indorsed with the words "pay
any bank" or the like, only a bank may acquire the rights of a
holder until the item has been:
(1) Returned to the customer initiating collection; or
(2) Specially indorsed by a bank to a person who is not a
bank. [1993 c 229 § 88; 1965 ex.s. c 157 § 4-201. Cf. former
RCW sections: (i) RCW 30.52.020; 1955 c 33 § 30.52.020;
prior: 1929 c 203 § 2; RRS § 3292-2. (ii) RCW 30.52.040;
1955 c 33 § 30.52.040; prior: 1931 c 10 § 1; 1929 c 203 § 4;
RRS § 3292-4.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-202
62A.4-202 Responsibility for collection or return;
when action timely. (a) A collecting bank must exercise
ordinary care in:
(1) Presenting an item or sending it for presentment;
(2) Sending notice of dishonor or non-payment or returning an item other than a documentary draft to the bank's transferor after learning that the item has not been paid or
accepted, as the case may be;
(3) Settling for an item when the bank receives final settlement; and
(4) Notifying its transferor of any loss or delay in transit
within a reasonable time after discovery thereof.
(b) A collecting bank exercises ordinary care under subsection (a) by taking proper action before its midnight deadline following receipt of an item, notice, or settlement. Taking proper action within a reasonably longer time may consti(2004 Ed.)
Bank Deposits and Collections
tute the exercise of ordinary care, but the bank has the burden
of establishing timeliness.
(c) Subject to subsection (a)(1), a bank is not liable for
the insolvency, neglect, misconduct, mistake or default of
another bank or person or for loss or destruction of an item in
the possession of others or in transit. [1993 c 229 § 89; 1965
ex.s. c 157 § 4-202. Cf. former RCW sections: (i) RCW
30.52.050; 1955 c 33 § 30.52.050; prior: 1929 c 203 § 5;
RRS § 3292-5. (ii) RCW 30.52.060; 1955 c 33 § 30.52.060;
prior: 1929 c 203 § 6; RRS § 3292-6.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-203
62A.4-203 Effect of instructions. Subject to Article 3
concerning conversion of instruments (RCW 62A.3-420) and
restrictive indorsements (RCW 62A.3-206), only a collecting
bank's transferor can give instructions that affect the bank or
constitute notice to it, and a collecting bank is not liable to
prior parties for any action taken pursuant to the instructions
or in accordance with any agreement with its transferor.
[1993 c 229 § 90; 1965 ex.s. c 157 § 4-203. Cf. former RCW
30.52.020; 1955 c 33 § 30.52.020; prior: 1929 c 203 § 2;
RRS § 3292-2.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-204
62A.4-204 Methods of sending and presenting; sending directly to payor bank. (a) A collecting bank shall send
items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number
of those items on hand, the cost of collection involved, and
the method generally used by it or others to present those
items.
(b) A collecting bank may send:
(1) An item directly to the payor bank;
(2) An item to a non-bank payor if authorized by its
transferor; and
(3) An item other than documentary drafts to a non-bank
payor, if authorized by Federal Reserve regulation or operating circular, clearing-house rule, or the like.
(c) Presentment may be made by a presenting bank at a
place where the payor bank or other payor has requested that
presentment be made. [1993 c 229 § 91; 1965 ex.s. c 157 §
4-204. Cf. former RCW 30.52.060; 1955 c 33 § 30.52.060;
prior: 1929 c 203 § 6; RRS § 3292-6.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-205
62A.4-205 Depositary bank holder of unindorsed
item. If a customer delivers an item to a depositary bank for
collection:
(a) The depositary bank becomes a holder of the item at
the time it receives the item for collection if the customer at
the time of delivery was a holder of the item, whether or not
the customer indorses the item, and, if the bank satisfies the
other requirements of RCW 62A.3-302, it is a holder in due
course; and
(b) The depositary bank warrants to collecting banks, the
payor bank or other payor, and the drawer that the amount of
the item was paid to the customer or deposited to the customer's account. [1993 c 229 § 92; 1965 ex.s. c 157 § 4-205.]
(2004 Ed.)
62A.4-208
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-206
62A.4-206 Transfer between banks. Any agreed
method that identifies the transferor bank is sufficient for the
item's further transfer to another bank. [1993 c 229 § 93;
1965 ex.s. c 157 § 4-206.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-207
62A.4-207 Transfer warranties. (a) A customer or
collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to
any subsequent collecting bank that:
(1) The warrantor is a person entitled to enforce the item;
(2) All signatures on the item are authentic and authorized;
(3) The item has not been altered;
(4) The item is not subject to a defense or claim in
recoupment (RCW 62A.3-305(a)) of any party that can be
asserted against the warrantor; and
(5) The warrantor has no knowledge of any insolvency
proceeding commenced with respect to the maker or acceptor
or, in the case of an unaccepted draft, the drawer.
(b) If an item is dishonored, a customer or collecting
bank transferring the item and receiving settlement or other
consideration is obliged to pay the amount due on the item (i)
according to the terms of the item at the time it was transferred, or (ii) if the transfer was of an incomplete item,
according to its terms when completed as stated in RCW
62A.3-115 and 62A.3-407. The obligation of a transferor is
owed to the transferee and to any subsequent collecting bank
that takes the item in good faith. A transferor cannot disclaim
its obligation under this subsection by an indorsement stating
that it is made "without recourse" or otherwise disclaiming
liability.
(c) A person to whom the warranties under subsection
(a) are made and who took the item in good faith may recover
from the warrantor as damages for breach of warranty an
amount equal to the loss suffered as a result of the breach, but
not more than the amount of the item plus expenses and loss
of interest incurred as a result of the breach.
(d) The warranties stated in subsection (a) cannot be disclaimed with respect to checks. Unless notice of a claim for
breach of warranty is given to the warrantor within thirty
days after the claimant has reason to know of the breach and
the identity of the warrantor, the warrantor is discharged to
the extent of any loss caused by the delay in giving notice of
the claim.
(e) A cause of action for breach of warranty under this
section accrues when the claimant has reason to know of the
breach. [1993 c 229 § 94; 1965 ex.s. c 157 § 4-207. Cf.
former RCW 30.52.040; 1955 c 33 § 30.52.040; prior: 1931
c 10 § 1; 1929 c 203 § 4; RRS § 3292-4.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-208
62A.4-208 Presentment warranties. (a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the person
obtaining payment or acceptance, at the time of presentment,
[Title 62A RCW—page 69]
62A.4-209
Title 62A RCW: Uniform Commercial Code
and (ii) a previous transferor of the draft, at the time of transfer, warrant to the drawee that pays or accepts the draft in
good faith that:
(1) The warrantor is, or was, at the time the warrantor
transferred the draft, a person entitled to enforce the draft or
authorized to obtain payment or acceptance of the draft on
behalf of a person entitled to enforce the draft;
(2) The draft has not been altered; and
(3) The warrantor has no knowledge that the signature of
the purported drawer of the draft is unauthorized.
(b) A drawee making payment may recover from a warrantor damages for breach of warranty equal to the amount
paid by the drawee less the amount the drawee received or is
entitled to receive from the drawer because of the payment.
In addition, the drawee is entitled to compensation for
expenses and loss of interest resulting from the breach. The
right of the drawee to recover damages under this subsection
is not affected by any failure of the drawee to exercise ordinary care in making payment. If the drawee accepts the draft
(i) breach of warranty is a defense to the obligation of the
acceptor, and (ii) if the acceptor makes payment with respect
to the draft, the acceptor is entitled to recover from a warrantor for breach of warranty the amounts stated in this subsection.
(c) If a drawee asserts a claim for breach of warranty
under subsection (a) based on an unauthorized indorsement
of the draft or an alteration of the draft, the warrantor may
defend by proving that the indorsement is effective under
RCW 62A.3-404 or 62A.3-405 or the drawer is precluded
under RCW 62A.3-406 or 62A.4-406 from asserting against
the drawee the unauthorized indorsement or alteration.
(d) If (i) a dishonored draft is presented for payment to
the drawer or an indorser or (ii) any other item is presented
for payment to a party obliged to pay the item, and the item is
paid, the person obtaining payment and a prior transferor of
the item warrant to the person making payment in good faith
that the warrantor is, or was, at the time the warrantor transferred the item, a person entitled to enforce the item or authorized to obtain payment on behalf of a person entitled to
enforce the item. The person making payment may recover
from any warrantor for breach of warranty an amount equal
to the amount paid plus expenses and loss of interest resulting
from the breach.
(e) The warranties stated in subsections (a) and (d) cannot be disclaimed with respect to checks. Unless notice of a
claim for breach of warranty is given to the warrantor within
thirty days after the claimant has reason to know of the
breach and the identity of the warrantor, the warrantor is discharged to the extent of any loss caused by the delay in giving
notice of the claim.
(f) A cause of action for breach of warranty under this
section accrues when the claimant has reason to know of the
breach. [1993 c 229 § 95; 1965 ex.s. c 157 § 4-208. Cf.
former RCW 30.52.020; 1955 c 33 § 30.52.020; prior: 1929
c 203 § 2; RRS § 3292-2.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
the payor bank or other payor that the information is correctly
encoded. If the customer of a depositary bank encodes, that
bank also makes the warranty.
(b) A person who undertakes to retain an item pursuant
to an agreement for electronic presentment warrants to any
subsequent collecting bank and to the payor bank or other
payor that retention and presentment of the item comply with
the agreement. If a customer of a depositary bank undertakes
to retain an item, that bank also makes this warranty.
(c) A person to whom warranties are made under this
section and who took the item in good faith may recover from
the warrantor as damages for breach of warranty an amount
equal to the loss suffered as a result of the breach, plus
expenses and loss of interest incurred as a result of the
breach. [1993 c 229 § 96; 1965 ex.s. c 157 § 4-209. Cf.
former RCW 62.01.027; 1955 c 35 § 62.01.027; prior: 1899
c 149 § 27; RRS § 3418.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-210 Security interest of collecting bank in
items, accompanying documents and proceeds. (a) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either:
(1) In case of an item deposited in an account, to the
extent to which credit given for the item has been withdrawn
or applied;
(2) In case of an item for which it has given credit available for withdrawal as of right, to the extent of the credit
given whether or not the credit is drawn upon or there is a
right of charge-back; or
(3) If it makes an advance on or against the item.
(b) If credit given for several items received at one time
or pursuant to a single agreement is withdrawn or applied in
part, the security interest remains upon all the items, any
accompanying documents or the proceeds of either. For the
purpose of this section, credits first given are first withdrawn.
(c) Receipt by a collecting bank of a final settlement for
an item is a realization on its security interest in the item,
accompanying documents, and proceeds. So long as the bank
does not receive final settlement for the item or give up possession of the item or accompanying documents for purposes
other than collection, the security interest continues to that
extent and is subject to Article 9A, but:
(1) No security agreement is necessary to make the security interest enforceable RCW 62A.9A-203(b)(3)(A);
(2) No filing is required to perfect the security interest;
and
(3) The security interest has priority over conflicting perfected security interests in the item, accompanying documents, or proceeds. [2001 c 32 § 13; 2000 c 250 § 9A-813;
1993 c 229 § 97; 1965 ex.s. c 157 § 4-210.]
62A.4-210
Effective date—2001 c 32: See note following RCW 62A.9A-102.
Effective date—2000 c 250: See RCW 62A.9A-701.
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-211 When bank gives value for purposes of
holder in due course. For purposes of determining its status
as a holder in due course, bank has given value to the extent
it has a security interest in an item, if the bank otherwise com62A.4-211
62A.4-209
62A.4-209 Encoding and retention warranties. (a) A
person who encodes information on or with respect to an item
after issue warrants to any subsequent collecting bank and to
[Title 62A RCW—page 70]
(2004 Ed.)
Bank Deposits and Collections
plies with the requirements of RCW 62A.3-302 on what constitutes a holder in due course. [1993 c 229 § 98; 1965 ex.s.
c 157 § 4-211. Cf. former RCW sections: (i) RCW
30.52.090; 1955 c 33 § 30.52.090; prior: 1929 c 203 § 9;
RRS § 3292-9. (ii) RCW 30.52.100; 1955 c 33 § 30.52.100;
prior: 1929 c 203 § 10; RRS § 3292-10.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-212
62A.4-212 Presentment by notice of item not payable
by, through, or at a bank; liability of drawer or indorser.
(a) Unless otherwise instructed, a collecting bank may
present an item not payable by, through or at a bank by sending to the party to accept or pay a written notice that the bank
holds the item for acceptance or payment. The notice must be
sent in time to be received on or before the day when presentment is due and the bank must meet any requirement of the
party to accept or pay under RCW 62A.3-501 by the close of
the bank's next banking day after it knows of the requirement.
(b) If presentment is made by notice and payment, acceptance, or request for compliance with a requirement under
RCW 62A.3-501 is not received by the close of business on
the day after maturity or, in the case of demand items, by the
close of business on the third banking day after notice was
sent, the presenting bank may treat the item as dishonored
and charge any drawer or indorser by sending it notice of the
facts. [1993 c 229 § 99; 1965 ex.s. c 157 § 4-212. Cf. former
RCW sections: (i) RCW 30.52.020; 1955 c 33 § 30.52.020;
prior: 1929 c 203 § 2; RRS § 3292-2. (ii) RCW 30.52.110;
1955 c 33 § 30.52.110; prior: 1929 c 203 § 11; RRS § 329211.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-213
62A.4-213 Medium and time of settlement by bank.
(a) With respect to settlement by a bank, the medium and
time of settlement may be prescribed by Federal Reserve regulations or circulars, clearing-house rules, and the like, or
agreement. In the absence of such prescription:
(1) The medium of settlement is cash or credit to an
account in a Federal Reserve bank of or specified by the person to receive settlement; and
(2) The time of settlement, is:
(i) With respect to tender of settlement by cash, a cashier's check, or teller's check, when the cash or check is sent or
delivered;
(ii) With respect to tender of settlement by credit in an
account in a Federal Reserve bank, when the credit is made;
(iii) With respect to tender of settlement by a credit or
debit to an account in a bank, when the credit or debit is made
or, in the case of tender of settlement by authority to charge
an account, when the authority is sent or delivered; or
(iv) With respect to tender of settlement by a funds transfer, when payment is made pursuant to RCW 62A.4A-406(1)
to the person receiving settlement.
(b) If the tender of settlement is not by a medium authorized by subsection (a) or the time of settlement is not fixed
by subsection (a), no settlement occurs until the tender of settlement is accepted by the person receiving settlement.
(2004 Ed.)
62A.4-214
(c) If settlement for an item is made by cashier's check or
teller's check and the person receiving settlement, before its
midnight deadline:
(1) Presents or forwards the check for collection, settlement is final when the check is finally paid; or
(2) Fails to present or forward the check for collection,
settlement is final at the midnight deadline of the person
receiving settlement.
(d) If settlement for an item is made by giving authority
to charge the account of the bank giving settlement in the
bank receiving settlement, settlement is final when the charge
is made by the bank receiving settlement if there are funds
available in the account for the amount of the item. [1993 c
229 § 100; 1965 ex.s. c 157 § 4-213. Cf. former RCW
30.52.110; 1955 c 33 § 30.52.110; prior: 1929 c 203 § 11;
RRS § 3292-11.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-214
62A.4-214 Right of charge-back or refund; liability
of collecting bank; return of item. (a) If a collecting bank
has made provisional settlement with its customer for an item
and fails by reason of dishonor, suspension of payments by a
bank, or otherwise to receive a settlement for the item which
is or becomes final, the bank may revoke the settlement given
by it, charge back the amount of any credit given for the item
to its customer's account, or obtain refund from its customer,
whether or not it is able to return the items, if by its midnight
deadline or within a longer reasonable time after it learns the
facts it returns the item or sends notification of the facts. If
the return or notice is delayed beyond the bank's midnight
deadline or a longer reasonable time after it learns the facts,
the bank may revoke the settlement, charge back the credit, or
obtain refund from its customer, but it is liable for any loss
resulting from the delay. These rights to revoke, charge-back,
and obtain refund terminate if and when a settlement for the
item received by the bank is or becomes final.
(b) A collecting bank returns an item when it is sent or
delivered to the bank's customer or transferor or pursuant to
its instructions.
(c) A depositary bank that is also the payor may chargeback the amount of an item to its customer's account or obtain
refund in accordance with the section governing return of an
item received by a payor bank for credit on its books (RCW
62A.4-301).
(d) The right to charge-back is not affected by:
(1) Previous use of a credit given for the item; or
(2) Failure by any bank to exercise ordinary care with
respect to the item, but a bank so failing remains liable.
(e) A failure to charge-back or claim refund does not
affect other rights of the bank against the customer or any
other party.
(f) If credit is given in dollars as the equivalent of the
value of an item payable in a foreign money, the dollar
amount of any charge-back or refund must be calculated on
the basis of the bank-offered spot rate for the foreign money
prevailing on the day when the person entitled to the chargeback or refund learns that it will not receive payment in ordinary course. [1993 c 229 § 101; 1965 ex.s. c 157 § 4-214. Cf.
former RCW 30.52.130; 1955 c 33 § 30.52.130; prior: 1929
c 203 § 13; RRS § 3292-13.]
[Title 62A RCW—page 71]
62A.4-215
Title 62A RCW: Uniform Commercial Code
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
Insolvency—Preferences prohibited: RCW 30.44.110.
62A.4-215
62A.4-215 Final payment of item by payor bank;
when provisional debits and credits become final; when
certain credits become available for withdrawal. (a) An
item is finally paid by a payor bank when the bank has first
done any of the following:
(1) Paid the item in cash;
(2) Settled for the item without having a right to revoke
the settlement under statute, clearing-house rule, or agreement; or
(3) Made a provisional settlement for the item and failed
to revoke the settlement in the time and manner permitted by
statute, clearing-house rule, or agreement.
(b) If provisional settlement for an item does not become
final, the item is not finally paid.
(c) If provisional settlement for an item between the presenting and payor banks is made through a clearing house or
by debits or credits in an account between them, then to the
extent that provisional debits or credits for the item are
entered in accounts between the presenting and payor banks
or between the presenting and successive prior collecting
banks seriatim, they become final upon final payment of the
item by the payor bank.
(d) If a collecting bank receives a settlement for an item
which is or becomes final, the bank is accountable to its customer for the amount of the item and any provisional credit
given for the item in an account with its customer becomes
final.
(e) Subject to (i) applicable law stating a time for availability of funds and (ii) any right of the bank to apply the
credit to an obligation of the customer, credit given by a bank
for an item in a customer's account becomes available for
withdrawal as of right:
(1) If the bank has received a provisional settlement for
the item, when the settlement becomes final and the bank has
had a reasonable time to receive return of the item and the
item has not been received within that time;
(2) If the bank is both the depositary bank and the payor
bank, and the item is finally paid, at the opening of the bank's
second banking day following receipt of the item.
(f) Subject to applicable law stating a time for availability of funds and any right of a bank to apply a deposit to an
obligation of the depositor, a deposit of money becomes
available for withdrawal as of right at the opening of the
bank's next banking day after receipt of the deposit. [1993 c
229 § 102.]
becomes final, the owner of the item has a preferred claim
against the payor bank.
(c) If a payor bank gives or a collecting bank gives or
receives a provisional settlement for an item and thereafter
suspends payments, the suspension does not prevent or interfere with the settlement's becoming final if the finality occurs
automatically upon the lapse of certain time or the happening
of certain events.
(d) If a collecting bank receives from subsequent parties
settlement for an item, which settlement is or becomes final
and the bank suspends payments without making a settlement
for the item with its customer which settlement is or becomes
final, the owner of the item has a preferred claim against the
collecting bank. [1993 c 229 § 103.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-301
62A.4-301 Deferred posting; recovery of payment by
return of items; time of dishonor; return of items by
payor bank. (a) If a payor bank settles for a demand item
(other than a documentary draft) presented otherwise than for
immediate payment over the counter before midnight of the
banking day of receipt, the payor bank may revoke the settlement and recover the settlement if, before it has made final
payment and before its midnight deadline, it:
(1) Returns the item; or
(2) Sends written notice of dishonor or nonpayment if
the item is unavailable for return.
(b) If a demand item is received by a payor bank for
credit on its books, it may return the item or send notice of
dishonor and may revoke any credit given or recover the
amount thereof withdrawn by its customer, if it acts within
the time limit and in the manner specified in subsection (a).
(c) Unless previous notice of dishonor has been sent, an
item is dishonored at the time when for purposes of dishonor
it is returned or notice sent in accordance with this section.
(d) An item is returned:
(1) As to an item presented through a clearing house,
when it is delivered to the presenting or last collecting bank
or to the clearing house or is sent or delivered in accordance
with clearing-house rules; or
(2) In all other cases, when it is sent or delivered to the
bank's customer or transferor or pursuant to instructions.
[1993 c 229 § 104; 1965 ex.s. c 157 § 4-301. Cf. former RCW
30.52.030; 1955 c 33 § 30.52.030; prior: 1929 c 203 § 3;
RRS § 3292-3.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-302 Payor bank's responsibility for late return
of item. (a) If an item is presented to and received by a payor
bank, the bank is accountable for the amount of:
(1) A demand item, other than a documentary draft,
whether properly payable or not, if the bank, in any case in
which it is not also the depositary bank, retains the item
beyond midnight of the banking day of receipt without settling for it or, whether or not it is also the depositary bank,
does not pay or return the item or send notice of dishonor
until after its midnight deadline; or
(2) Any other properly payable item unless, within the
time allowed for acceptance or payment of that item, the bank
62A.4-302
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-216
62A.4-216 Insolvency and preference. (a) If an item is
in or comes into the possession of a payor or collecting bank
that suspends payment and the item has not been finally paid,
the item must be returned by the receiver, trustee, or agent in
charge of the closed bank to the presenting bank or the closed
bank's customer.
(b) If a payor bank finally pays an item and suspends
payments without making a settlement for the item with its
customer or the presenting bank which settlement is or
[Title 62A RCW—page 72]
(2004 Ed.)
Bank Deposits and Collections
either accepts or pays the item or returns it and accompanying
documents.
(b) The liability of a payor bank to pay an item pursuant
to subsection (a) is subject to defenses based on breach of a
presentment warranty (RCW 62A.4-208) or proof that the
person seeking enforcement of the liability presented or
transferred the item for the purpose of defrauding the payor
bank. [1993 c 229 § 105; 1965 ex.s. c 157 § 4-302. Cf.
former RCW 30.52.030; 1955 c 33 § 30.52.030; prior: 1929
c 203 § 3; RRS § 3292-3.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-303
62A.4-303 When items subject to notice, stop-payment order, legal process, or setoff; order in which items
may be charged or certified. (a) Any knowledge, notice, or
stop-payment order received by, legal process served upon,
or setoff exercised by a payor bank comes too late to terminate, suspend, or modify the bank's right or duty to pay an
item or to charge its customer's account for the item if the
knowledge, notice, stop-payment order, or legal process is
received or served and a reasonable time for the bank to act
thereon expires or the setoff is exercised after the earliest of
the following:
(1) The bank accepts or certifies the item;
(2) The bank pays the item in cash;
(3) The bank settles for the item without having a right to
revoke the settlement under statute, clearing-house rule, or
agreement;
(4) The bank becomes accountable for the amount of the
item under RCW 62A.4-302 dealing with the payor bank's
responsibility for late return of items; or
(5) With respect to checks, a cutoff hour no earlier than
one hour after the opening of the next banking day after the
banking day on which the bank received the check and no
later than the close of that next banking day or, if no cutoff
hour is fixed, the close of the next banking day after the banking day on which the bank received the check.
(b) Subject to subsection (a) items may be accepted,
paid, certified, or charged to the indicated account of its customer in any order. [1993 c 229 § 106; 1965 ex.s. c 157 § 4303.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-401
62A.4-401 When bank may charge customer's
account. (a) A bank may charge against the account of a customer an item that is properly payable from that account even
though the charge creates an overdraft. An item is properly
payable if it is authorized by the customer and is in accordance with any agreement between the customer and bank.
(b) A customer is not liable for the amount of an overdraft if the customer neither signed the item nor benefited
from the proceeds of the item.
(c) A bank may charge against the account of a customer
a check that is otherwise properly payable from the account,
even though payment was made before the date of the check,
unless the customer has given notice to the bank of the postdating describing the check with reasonable certainty. The
notice is effective for the period stated in RCW 62A.4-403(b)
for stop-payment orders, and must be received at such time
(2004 Ed.)
62A.4-403
and in such manner as to afford the bank a reasonable opportunity to act on it before the bank takes any action with
respect to the check described in RCW 62A.4-303. A bank
may not collect a fee from a customer based on the customer's
giving notice to the bank of a postdating. If a bank charges
against the account of a customer a check before the date
stated in the notice of postdating, the bank is liable for damages for the loss resulting from its act. The loss may include
damages for dishonor of subsequent items under RCW
62A.4-402.
(d) A bank that in good faith makes payment to a holder
may charge the indicated account of its customer according
to:
(1) The original terms of the altered item; or
(2) The terms of the completed item, even though the
bank knows the item has been completed unless the bank has
notice that the completion was improper. [1993 c 229 § 107;
1965 ex.s. c 157 § 4-401.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-402
62A.4-402 Bank's liability to customer for wrongful
dishonor; time of determining insufficiency of account.
(a) Except as otherwise provided in this Article, a payor bank
wrongfully dishonors an item if it dishonors an item that is
properly payable, but a bank may dishonor an item that
would create an overdraft unless it has agreed to pay the overdraft.
(b) A payor bank is liable to its customer for damages
proximately caused by the wrongful dishonor of an item. Liability is limited to actual damages proved and may include
damages for an arrest or prosecution of the customer or other
consequential damages. Whether any consequential damages
are proximately caused by the wrongful dishonor is a question of fact to be determined in each case.
(c) A payor bank's determination of the customer's
account balance on which a decision to dishonor for insufficiency of available funds is based may be made at any time
between the time the item is received by the payor bank and
the time that the payor bank returns the item or gives notice
in lieu of return, and no more than one determination need be
made. If, at the election of the payor bank, a subsequent balance determination is made for the purpose of reevaluating
the bank's decision to dishonor the item, the account balance
at that time is determinative of whether a dishonor for insufficiency of available funds is wrongful. [1993 c 229 § 108;
1965 ex.s. c 157 § 4-402.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-403
62A.4-403 Customer's right to stop payment; burden
of proof of loss. (a) A customer or any other person authorized to draw on the account if there is more than one person
may stop payment of any item drawn on the customer's
account or close the account by an order to the bank describing the item or account with reasonable certainty received at
a time and in a manner that affords the bank a reasonable
opportunity to act on it before any action by the bank with
respect to the item described in RCW 62A.4-303. If the signature of more than one person is required to draw on an
[Title 62A RCW—page 73]
62A.4-404
Title 62A RCW: Uniform Commercial Code
account, any of these persons may stop payment or close the
account.
(b) A stop-payment order is effective for six months, but
it lapses after fourteen calendar days if the original order was
oral and was not confirmed in writing within that period. A
stop-payment order may be renewed for additional six-month
periods by a writing given to the bank within a period during
which the stop-payment order is effective.
(c) The burden of establishing the fact and amount of
loss resulting from the payment of an item contrary to a binding stop-payment order or order to close the account is on the
customer. The loss from payment of an item contrary to a
stop-payment order may include damages for dishonor of
subsequent items under RCW 62A.4-402. [1993 c 229 § 109;
1965 ex.s c 157 § 4-403. Cf. former RCW sections: (i) RCW
30.16.030; 1959 c 106 § 4; 1955 c 33 § 30.16.030; prior:
1923 c 114 §§ 1, part, and 2; RRS §§ 3252-1, part, and 32522. (ii) RCW 30.16.040; 1955 c 33 § 30.16.040; prior: 1923 c
114 §§ 1, part, and 3; RRS §§ 3252-1, part, and 3252-3.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-404 Bank not obligated to pay check more
than six months old. A bank is under no obligation to a customer having a checking account to pay a check, other than a
certified check, which is presented more than six months
after its date, but it may charge its customer's account for a
payment made thereafter in good faith. [1965 ex.s. c 157 § 4404. Cf. former RCW 30.16.050; 1955 c 33 § 30.16.050;
prior: 1923 c 114 §§ 1, part, and 5; RRS §§ 3252-1, part, and
3252-5.]
62A.4-404
62A.4-405
62A.4-405 Death or incompetence of customer. (a) A
payor or collecting bank's authority to accept, pay, or collect
an item or to account for proceeds of its collection, if otherwise effective, is not rendered ineffective by incompetence of
a customer of either bank existing at the time the item is
issued or its collection is undertaken if the bank does not
know of an adjudication of incompetence. Neither death nor
incompetence of a customer revokes the authority to accept,
pay, collect, or account until the bank knows of the fact of
death or of an adjudication of incompetence and has reasonable opportunity to act on it.
(b) Even with knowledge, a bank may for ten days after
the date of death pay or certify checks drawn on or before that
date unless ordered to stop payment by a person claiming an
interest in the account. [1993 c 229 § 110; 1965 ex.s. c 157 §
4-405. Cf. former RCW 30.20.030; 1955 c 33 § 30.20.030;
prior: 1917 c 80 § 43; RRS § 3250.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-406 Customer's duty to discover and report
unauthorized signature or alteration. (a) A bank that
sends or makes available to a customer a statement of account
showing payment of items for the account shall either return
or make available to the customer the items paid, copies of
the items paid, or provide information in the statement of
account sufficient to allow the customer reasonably to identify the items paid. The statement of account provides sufficient information if the item is described by item number,
62A.4-406
[Title 62A RCW—page 74]
amount, and date of payment. If the bank does not return the
items paid or copies of the items paid, it shall provide in the
statement of account the telephone number that the customer
may call to request an item or copy of an item pursuant to
subsection (b) of this section.
(b) If the items are not returned to the customer, the person retaining the items shall either retain the items or, if the
items are destroyed, maintain the capacity to furnish legible
copies of the items until the expiration of seven years after
receipt of the items. A customer may request an item from the
bank that paid the item, and that bank must provide in a reasonable time either the item or, if the item has been destroyed
or is not otherwise obtainable, a legible copy of the item. A
bank shall provide, upon request and without charge to the
customer, at least two items or copies of items with respect to
each statement of account sent to the customer. A bank may
charge fees for additional items or copies of items in accordance with RCW 30.22.230. Requests for ten items or less
shall be processed and completed within ten business days.
(c) If a bank sends or makes available a statement of
account or items pursuant to subsection (a), the customer
must exercise reasonable promptness in examining the statement or the items to determine whether any payment was not
authorized because of an alteration of an item or because a
purported signature by or on behalf of the customer was not
authorized. If, based on the statement or items provided, the
customer should reasonably have discovered the unauthorized payment, the customer must promptly notify the bank
of the relevant facts.
(d) If the bank proves that the customer, failed with
respect to an item, to comply with the duties imposed on the
customer by subsection (c) the customer is precluded from
asserting against the bank:
(1) The customer's unauthorized signature or any alteration on the item, if the bank also proves that it suffered a loss
by reason of the failure; and
(2) The customer's unauthorized signature or alteration
by the same wrong-doer on any other item paid in good faith
by the bank if the payment was made before the bank
received notice from the customer of the unauthorized signature or alteration and after the customer had been afforded a
reasonable period of time, not exceeding thirty days, in which
to examine the item or statement of account and notify the
bank.
(e) If subsection (d) applies and the customer proves that
the bank failed to exercise ordinary care in paying the item
and that the failure substantially contributed to loss, the loss
is allocated between the customer precluded and the bank
asserting the preclusion according to the extent to which the
failure of the customer to comply with subsection (c) and the
failure of the bank to exercise ordinary care contributed to the
loss. If the customer proves that the bank did not pay the item
in good faith, the preclusion under subsection (d) does not
apply.
(f) Without regard to care or lack of care of either the
customer or the bank, a natural person whose account is primarily for personal, family, or household purposes who does
not within one year, and any other customer who does not
within sixty days, from the time the statement and items are
made available to the customer (subsection (a)) discover and
report the customer's unauthorized signature or any alteration
(2004 Ed.)
Funds Transfers
on the face or back of the item or does not within one year
from that time discover and report any unauthorized indorsement is precluded from asserting against the bank such unauthorized signature or indorsement or such alteration. If there
is a preclusion under this subsection, the payor bank may not
recover for breach of warranty under RCW 62A.4-208 with
respect to the unauthorized signature or alteration to which
the preclusion applies. [1997 c 53 § 1; 1995 c 107 § 1; 1993
c 229 § 111; 1991 sp.s. c 19 § 1; 1967 c 114 § 1; 1965 ex.s. c
157 § 4-406. Cf. former RCW 30.16.020; 1955 c 33 §
30.16.020; prior: 1917 c 80 § 45; RRS § 3252.]
Effective date—1995 c 107: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1,
1995." [1995 c 107 § 2.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
Emergency—Effective date—1967 c 114: "This 1967 amendatory act
is necessary for the immediate preservation of the public peace, health and
safety, the support of the state government and its existing public institutions, and sections 1 through 11 and 13 through 16 shall take effect on June
30, 1967, and section 12 shall take effect immediately." [1967 c 114 § 17.]
62A.4-407
62A.4-407 Payor bank's right to subrogation on
improper payment. If a payor bank has paid an item over
the order of the drawer or maker to stop payment, or after an
account has been closed, or otherwise under circumstances
giving a basis for objection by the drawer or maker, to prevent unjust enrichment and only to the extent necessary to
prevent loss to the bank by reason of its payment of the item,
the payor bank is subrogated to the rights:
(1) Of any holder in due course on the item against the
drawer or maker;
(2) Of the payee or any other holder of the item against
the drawer or maker either on the item or under the transaction out of which the item arose; and
(3) Of the drawer or maker against the payee or any other
holder of the item with respect to the transaction out of which
the item arose. [1993 c 229 § 112; 1965 ex.s. c 157 § 4-407.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-501
62A.4-501 Handling of documentary drafts; duty to
send for presentment and to notify customer of dishonor.
A bank that takes a documentary draft for collection shall
present or send the draft and accompanying documents for
presentment and, upon learning that the draft has not been
paid or accepted in due course, shall seasonably notify its
customer of the fact even though it may have discounted or
bought the draft or extended credit available for withdrawal
as of right. [1993 c 229 § 113; 1965 ex.s. c 157 § 4-501.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-502
62A.4-502 Presentment of "on arrival" drafts. If a
draft or the relevant instructions require presentment "on
arrival", "when goods arrive" or the like, the collecting bank
need not present until in its judgment a reasonable time for
arrival of the goods has expired. Refusal to pay or accept
because the goods have not arrived is not dishonor; the bank
must notify its transferor of the refusal but need not present
the draft again until it is instructed to do so or learns of the
(2004 Ed.)
Article 4A
arrival of the goods. [1993 c 229 § 114; 1965 ex.s. c 157 § 4502.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-503
62A.4-503 Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee
in case of need. Unless otherwise instructed and except as
provided in Article 5, a bank presenting a documentary draft:
(1) Must deliver the documents to the drawee on acceptance of the draft if it is payable more than three days after
presentment; otherwise, only on payment; and
(2) Upon dishonor, either in the case of presentment for
acceptance or presentment for payment, may seek and follow
instructions from any referee in case of need designated in the
draft or, if the presenting bank does not choose to utilize the
referee's services, it must use diligence and good faith to
ascertain the reason for dishonor, must notify its transferor of
the dishonor and of the results of its effort to ascertain the reasons therefor, and must request instructions. However, the
presenting bank is under no obligation with respect to goods
represented by the documents except to follow any reasonable instructions seasonably received; it has a right to reimbursement for any expense incurred in following instructions
and to prepayment of or indemnity for those expenses. [1993
c 229 § 115; 1965 ex.s. c 157 § 4-503. Cf. former RCW
62.01.131(3); 1955 c 35 § 62.01.131; prior: 1899 c 149 §
131; RRS § 3521.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
62A.4-504
62A.4-504 Privilege of presenting bank to deal with
goods; security interest for expenses. (a) A presenting
bank that, following the dishonor of a documentary draft, has
seasonably requested instructions but does not receive them
within a reasonable time may store, sell, or otherwise deal
with the goods in any reasonable manner.
(b) For its reasonable expenses incurred by action under
subsection (a) the presenting bank has a lien upon the goods
or their proceeds, which may be foreclosed in the same manner as an unpaid seller's lien. [1993 c 229 § 116; 1965 ex.s. c
157 § 4-504.]
Recovery of attorneys' fees—Effective date—1993 c 229: See RCW
62A.11-111 and 62A.11-112.
Article 4A
FUNDS TRANSFERS
Article 4A
Sections
PART 1
SUBJECT MATTER AND DEFINITIONS
62A.4A-101
62A.4A-102
62A.4A-103
62A.4A-104
62A.4A-105
62A.4A-106
62A.4A-107
62A.4A-108
Short title.
Subject matter.
Payment order—Definitions.
Funds transfer—Definitions.
Other definitions.
Time payment order is received.
Federal reserve regulations and operating circulars.
Exclusion of consumer transactions governed by federal law.
PART 2
ISSUE AND ACCEPTANCE OF PAYMENT ORDER
62A.4A-201
Security procedure.
[Title 62A RCW—page 75]
62A.4A-101
62A.4A-202
62A.4A-203
62A.4A-204
62A.4A-205
62A.4A-206
62A.4A-207
62A.4A-208
62A.4A-209
62A.4A-210
62A.4A-211
62A.4A-212
Title 62A RCW: Uniform Commercial Code
Authorized and verified payment orders.
Unenforceability of certain verified payment orders.
Refund of payment and duty of customer to report with
respect unauthorized payment order.
Erroneous payment orders.
Transmission of payment order through funds-transfer or
other communication system.
Misdescription of beneficiary.
Misdescription of intermediary bank or beneficiary's bank.
Acceptance of payment order.
Rejection of payment order.
Cancellation and amendment of payment order.
Liability and duty of receiving bank regarding unaccepted
payment order.
PART 3
EXECUTION OF SENDER'S PAYMENT ORDER
BY RECEIVING BANK
62A.4A-301
62A.4A-302
62A.4A-303
62A.4A-304
62A.4A-305
Execution and execution date.
Obligations of receiving bank in execution of payment order.
Erroneous execution of payment order.
Duty of sender to report erroneously executed payment order.
Liability for late or improper execution or failure to execute
payment order.
PART 4
PAYMENT
62A.4A-401
62A.4A-402
62A.4A-403
62A.4A-404
62A.4A-405
62A.4A-406
Payment date.
Obligation of sender to pay receiving bank.
Payment by sender to receiving bank.
Obligation of beneficiary's bank to pay and give notice to
beneficiary.
Payment by beneficiary's bank to beneficiary.
Payment by originator to beneficiary; discharge of underlying obligation.
PART 5
MISCELLANEOUS PROVISIONS
62A.4A-501
62A.4A-502
62A.4A-503
62A.4A-504
62A.4A-505
62A.4A-506
62A.4A-507
Variation by agreement and effect of funds-transfer system
rule.
Creditor process served on receiving bank; setoff by beneficiary's bank.
Injunction or restraining order with respect to funds transfer.
Order in which items and payment orders may be charged to
account; order of withdrawals from account.
Preclusion of objection to debit of customer's account.
Rate of interest.
Choice of law.
Reviser's note: Powers, duties, and functions of the department of general administration relating to financial institutions were transferred to the
department of financial institutions by 1993 c 472, effective October 1, 1993.
See RCW 43.320.011.
(iii) The instruction is transmitted by the sender directly
to the receiving bank or to an agent, funds-transfer system, or
communication system for transmittal to the receiving bank.
(b) "Beneficiary" means the person to be paid by the beneficiary's bank.
(c) "Beneficiary's bank" means the bank identified in a
payment order in which an account of the beneficiary is to be
credited pursuant to the order or which otherwise is to make
payment to the beneficiary if the order does not provide for
payment to an account.
(d) "Receiving bank" means the bank to which the
sender's instruction is addressed.
(e) "Sender" means the person giving the instruction to
the receiving bank.
(2) If an instruction complying with subsection (1)(a) of
this section is to make more than one payment to a beneficiary, the instruction is a separate payment order with respect
to each payment.
(3) A payment order is issued when it is sent to the
receiving bank. [1991 sp.s. c 21 § 4A-103.]
62A.4A-104
62A.4A-104 Funds transfer—Definitions. In this
Article:
(1) "Funds transfer" means the series of transactions,
beginning with the originator's payment order, made for the
purpose of making payment to the beneficiary of the order.
The term includes any payment order issued by the originator's bank or an intermediary bank intended to carry out the
originator's payment order. A funds transfer is completed by
acceptance by the beneficiary's bank of a payment order for
the benefit of the beneficiary of the originator's payment
order.
(2) "Intermediary bank" means a receiving bank other
than the originator's bank or the beneficiary's bank.
(3) "Originator" means the sender of the first payment
order in a funds transfer.
(4) "Originator's bank" means (a) the receiving bank to
which the payment order of the originator is issued if the
originator is not a bank, or (b) the originator if the originator
is a bank. [1991 sp.s. c 21 § 4A-104.]
62A.4A-101
62A.4A-101 Short title. This Article may be cited as
the Uniform Commercial Code—Funds Transfers. [1991
sp.s. c 21 § 4A-101.]
62A.4A-102
62A.4A-102 Subject matter. Except as otherwise provided in RCW 62A.4A-108 this Article applies to funds
transfers defined in RCW 62A.4A-104. [1991 sp.s. c 21 §
4A-102.]
62A.4A-103
62A.4A-103 Payment order—Definitions. (1) In this
Article:
(a) "Payment order" means an instruction of a sender to
a receiving bank, transmitted orally, electronically, or in writing, to pay, or to cause another bank to pay, a fixed or determinable amount of money to a beneficiary if:
(i) The instruction does not state a condition of payment
to the beneficiary other than time of payment;
(ii) The receiving bank is to be reimbursed by debiting
an account of, or otherwise receiving payment from, the
sender; and
[Title 62A RCW—page 76]
62A.4A-105
62A.4A-105 Other definitions. (1) In this Article:
(a) "Authorized account" means a deposit account of a
customer in a bank designated by the customer as a source of
payment orders issued by the customer to the bank. If a customer does not so designate an account, any account of the
customer is an authorized account if payment of a payment
order from that account is not inconsistent with a restriction
on the use of the account.
(b) "Bank" means a person engaged in the business of
banking and includes a savings bank, savings and loan association, credit union, and trust company. A branch or separate
office of a bank is a separate bank for purposes of this Article.
(c) "Customer" means a person, including a bank, having
an account with a bank or from whom a bank has agreed to
receive payment orders.
(d) "Funds-transfer business day" of a receiving bank
means the part of a day during which the receiving bank is
open for the receipt, processing, and transmittal of payment
orders and cancellations and amendments of payment orders.
(2004 Ed.)
Funds Transfers
(e) "Funds-transfer system" means a wire transfer network, automated clearing house, or other communication
system of a clearing house or other association of banks
through which a payment order by a bank may be transmitted
to the bank to which the order is addressed.
(f) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(g) "Prove" with respect to a fact means to meet the burden of establishing the fact (RCW 62A.1-201(8)).
(2) Other definitions applying to this Article and the sections in which they appear are:
"Acceptance"
RCW 62A.4A-209
"Beneficiary"
RCW 62A.4A-103
"Beneficiary's bank"
RCW 62A.4A-103
"Executed"
RCW 62A.4A-301
"Execution date"
RCW 62A.4A-301
"Funds transfer"
RCW 62A.4A-104
"Funds-transfer system rule"
RCW 62A.4A-501
"Intermediary bank"
RCW 62A.4A-104
"Originator"
RCW 62A.4A-104
"Originator's bank"
RCW 62A.4A-104
"Payment by beneficiary's bank
to beneficiary"
RCW 62A.4A-405
"Payment by originator to beneficiary"
RCW 62A.4A-406
"Payment by sender to receiving bank"
RCW 62A.4A-403
"Payment date"
RCW 62A.4A-401
"Payment order"
RCW 62A.4A-103
"Receiving bank"
RCW 62A.4A-103
"Security procedure"
RCW 62A.4A-201
"Sender"
RCW 62A.4A-103
(3) The following definitions in Article 4 (RCW
62A.4-101 through 62A.4-504) apply to this Article:
"Clearing house"
*section 4-104 of this act
"Item"
*section 4-104 of this act
"Suspends payments"
*section 4-104 of this act
(4) In addition to Article 1 [In addition, Article 1] (RCW
62A.1-101 through 62A.1-208) contains general definitions
and principles of construction and interpretation applicable
throughout this Article. [1991 sp.s. c 21 § 4A-105.]
*Reviser's note: The references to "section 4-104 of this act" are incorrect. RCW 62A.4-104 was apparently intended.
62A.4A-106
62A.4A-106 Time payment order is received. (1) The
time of receipt of a payment order or communication canceling or amending a payment order is determined by the rules
applicable to receipt of a notice stated in RCW
62A.1-201(27). A receiving bank may fix a cut-off time or
times on a funds-transfer business day for the receipt and processing of payment orders and communications canceling or
amending payment orders. Different cut-off times may apply
to payment orders, cancellations, or amendments, or to different categories of payment orders, cancellations, or amendments. A cut-off time may apply to senders generally or different cut-off times may apply to different senders or categories of payment orders. If a payment order or communication
canceling or amending a payment order is received after the
close of a funds-transfer business day or after the appropriate
cut-off time on a funds-transfer business day, the receiving
bank may treat the payment order or communication as
(2004 Ed.)
62A.4A-202
received at the opening of the next funds-transfer business
day.
(2) If this Article refers to an execution date or payment
date or states a day on which a receiving bank is required to
take action, and the date or day does not fall on a funds-transfer business day, the next day that is a funds-transfer business
day is treated as the date or day stated, unless the contrary is
stated in this Article. [1991 sp.s. c 21 § 4A-106.]
62A.4A-107
62A.4A-107 Federal reserve regulations and operating circulars. Regulations of the board of governors of the
federal reserve system and operating circulars of the federal
reserve banks supersede any inconsistent provision of this
Article to the extent of the inconsistency. [1991 sp.s. c 21 §
4A-107.]
62A.4A-108
62A.4A-108 Exclusion of consumer transactions governed by federal law. This Article does not apply to a funds
transfer any part of which is governed by the Electronic Fund
Transfer Act of 1978 (Title XX, P.L. 95-630, 92 Stat. 3728,
15 U.S.C. Sec. 1693 et seq.) as amended from time to time.
[1991 sp.s. c 21 § 4A-108.]
62A.4A-201
62A.4A-201 Security procedure. "Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of (1) verifying
that a payment order or communication amending or canceling a payment order is that of the customer, or (2) detecting
error in the transmission or the content of the payment order
or communication. A security procedure may require the use
of algorithms or other codes, identifying words or numbers,
encryption, callback procedures, or similar security devices.
Comparison of a signature on a payment order or communication with an authorized specimen signature of the customer
is not by itself a security procedure. [1991 sp.s. c 21 §
4A-201.]
62A.4A-202
62A.4A-202 Authorized and verified payment
orders. (1) A payment order received by the receiving bank
is the authorized order of the person identified as sender if
that person authorized the order or is otherwise bound by it
under the law of agency.
(2) If a bank and its customer have agreed that the
authenticity of payment orders issued to the bank in the name
of the customer as sender will be verified pursuant to a security procedure, a payment order received by the receiving
bank is effective as the order of the customer, whether or not
authorized, if (a) the security procedure is a commercially
reasonable method of providing security against unauthorized payment orders, and (b) the bank proves that it accepted
the payment order in good faith and in compliance with the
security procedure and any written agreement or instruction
of the customer restricting acceptance of payment orders
issued in the name of the customer. The bank is not required
to follow an instruction that violates a written agreement with
the customer or notice of which is not received at a time and
in a manner affording the bank a reasonable opportunity to
act on it before the payment order is accepted.
(3) Commercial reasonableness of a security procedure
is a question of law to be determined by considering the
[Title 62A RCW—page 77]
62A.4A-203
Title 62A RCW: Uniform Commercial Code
wishes of the customer expressed to the bank, the circumstances of the customer known to the bank, including the size,
type, and frequency of payment orders normally issued by the
customer to the bank, alternative security procedures offered
to the customer, and security procedures in general use by
customers and receiving banks similarly situated. A security
procedure is deemed to be commercially reasonable if (a) the
security procedure was chosen [by] the customer after the
bank offered, and the customer refused, a security procedure
that was commercially reasonable for that customer, and (b)
the customer expressly agreed in writing to be bound by any
payment order, whether or not authorized, issued in its name,
and accepted by the bank in compliance with the security procedure chosen by the customer.
(4) The term "sender" in this Article includes the customer in whose name a payment order is issued if the order is
the authorized order of the customer under subsection (1) of
this section, or it is effective as the order of the customer
under subsection (2) of this section.
(5) This section applies to amendments and cancellations
of payment orders to the same extent it applies to payment
orders.
(6) Except as provided in this section and RCW
62A.4A-203(1)(a), rights and obligations arising under this
section or RCW 62A.4A-203 may not be varied by agreement. [1991 sp.s. c 21 § 4A-202.]
62A.4A-203
62A.4A-203 Unenforceability of certain verified payment orders. (1) If an accepted payment order is not, under
RCW 62A.4A-201(1), an authorized order of a customer
identified as sender, but is effective as an order of the customer pursuant to RCW 62A.4A-202(2), the following rules
apply.
(a) By express written agreement, the receiving bank
may limit the extent to which it is entitled to enforce or retain
payment of the payment order.
(b) The receiving bank is not entitled to enforce or retain
payment of the payment order if the customer proves that the
order was not caused, directly or indirectly, by a person (i)
entrusted at any time with duties to act for the customer with
respect to payment orders or the security procedure, or (ii)
who obtained access to transmitting facilities of the customer
or who obtained, from a source controlled by the customer
and without authority of the receiving bank, information
facilitating breach of the security procedure, regardless of
how the information was obtained or whether the customer
was at fault. Information includes any access device, computer software, or the like.
(2) This section applies to amendments of payment
orders to the same extent it applies to payment orders. [1991
sp.s. c 21 § 4A-203.]
62A.4A-204
62A.4A-204 Refund of payment and duty of customer to report with respect unauthorized payment
order. (1) If a receiving bank accepts a payment order issued
in the name of its customer as sender which is (a) not authorized and not effective as the order of the customer under
RCW 62A.4A-202, or (b) not enforceable, in whole or in
part, against the customer under RCW 62A.4A-203, the bank
shall refund any payment of the payment order received from
[Title 62A RCW—page 78]
the customer to the extent the bank is not entitled to enforce
payment and shall pay interest on the refundable amount calculated from the date the bank received payment to the date
of the refund. However, the customer is not entitled to interest from the bank on the amount to be refunded if the customer fails to exercise ordinary care to determine that the
order was not authorized by the customer and to notify the
bank of the relevant facts within a reasonable time not
exceeding ninety days after the date the customer received
notification from the bank that the order was accepted or that
the customer's account was debited with respect to the order.
The bank is not entitled to any recovery from the customer on
account of a failure by the customer to give notification as
stated in this section.
(2) Reasonable time under subsection (1) of this section
may be fixed by agreement as stated in RCW 62A.1-204(1),
but the obligation of a receiving bank to refund payment as
stated in subsection (1) may not otherwise be varied by agreement. [1991 sp.s. c 21 § 4A-204.]
62A.4A-205 Erroneous payment orders. (1) If an
accepted payment order was transmitted pursuant to a security procedure for the detection of error and the payment
order (a) erroneously instructed payment to a beneficiary not
intended by the sender, (b) erroneously instructed payment in
an amount greater than the amount intended by the sender, or
(c) was an erroneously transmitted duplicate of a payment
order previously sent by the sender, the following rules
apply:
(i) If the sender proves that the sender or a person acting
on behalf of the sender pursuant to RCW 62A.4A-206 complied with the security procedure and that the error would
have been detected if the receiving bank had also complied,
the sender is not obliged to pay the order to the extent stated
in (ii) and (iii) of this subsection.
(ii) If the funds transfer is completed on the basis of an
erroneous payment order described in (b) or (c) of this subsection, the sender is not obliged to pay the order and the
receiving bank is entitled to recover from the beneficiary any
amount paid to the beneficiary to the extent allowed by the
law governing mistake and restitution.
(iii) If the funds transfer is completed on the basis of a
payment order described in (b) of this subsection, the sender
is not obliged to pay the order to the extent the amount
received by the beneficiary is greater than the amount
intended by the sender. In that case, the receiving bank is
entitled to recover from the beneficiary the excess amount
received to the extent allowed by the law governing mistake
and restitution.
(2) If (a) the sender of an erroneous payment order
described in subsection (1) of this section is not obliged to
pay all or part of the order, and (b) the sender receives notification from the receiving bank that the order was accepted by
the bank or that the sender's account was debited with respect
to the order, the sender has a duty to exercise ordinary care,
on the basis of information available to the sender, to discover the error with respect to the order and to advise the
bank of the relevant facts within a reasonable time, not
exceeding ninety days, after the bank's notification was
received by the sender. If the bank proves that the sender
failed to perform that duty, the sender is liable to the bank for
62A.4A-205
(2004 Ed.)
Funds Transfers
the loss the bank proves it incurred as a result of the failure,
but the liability of the sender may not exceed the amount of
the sender's order.
(3) This section applies to amendments to payment
orders to the same extent it applies to payment orders. [1991
sp.s. c 21 § 4A-205.]
62A.4A-206
62A.4A-206 Transmission of payment order through
funds-transfer or other communication system. (1) If a
payment order addressed to a receiving bank is transmitted to
a funds-transfer system or other third-party communication
system for transmittal to the bank, the system is deemed to be
an agent of the sender for the purpose of transmitting the payment order to the bank. If there is a discrepancy between the
terms of the payment order transmitted to the system and the
terms of the payment order transmitted by the system to the
bank, the terms of the payment order of the sender are those
transmitted by the system. This section does not apply to a
funds-transfer system of the federal reserve banks.
(2) This section applies to cancellations and amendments
of payment orders to the same extent it applies to payment
orders. [1991 sp.s. c 21 § 4A-206.]
62A.4A-207
62A.4A-207 Misdescription of beneficiary. (1) Subject to subsection (2) of this section, if, in a payment order
received by the beneficiary's bank, the name, bank account
number, or other identification of the beneficiary refers to a
nonexistent or unidentifiable person or account, no person
has rights as a beneficiary of the order and acceptance of the
order cannot occur.
(2) If a payment order received by the beneficiary's bank
identifies the beneficiary both by name and by an identifying
or bank account number and the name and number identify
different persons, the following rules apply:
(a) Except as otherwise provided in subsection (3) of this
section, if the beneficiary's bank does not know that the name
and number refer to different persons, it may rely on the number as the proper identification of the beneficiary of the order.
The beneficiary's bank need not determine whether the name
and number refer to the same person.
(b) If the beneficiary's bank pays the person identified by
name or knows that the name and number identify different
persons, no person has rights as beneficiary except the person
paid by the beneficiary's bank if that person was entitled to
receive payment from the originator of the funds transfer. If
no person has rights as beneficiary, acceptance of the order
cannot occur.
(3) If (a) a payment order described in subsection (2) of
this section is accepted, (b) the originator's payment order
described the beneficiary inconsistently by name and number, and (c) the beneficiary's bank pays the person identified
by number as permitted by subsection (2)(a) of this section,
the following rules apply:
(i) If the originator is a bank, the originator is obliged to
pay its order.
(ii) If the originator is not a bank and proves that the person identified by number was not entitled to receive payment
from the originator, the originator is not obliged to pay its
order unless the originator's bank proves that the originator,
before acceptance of the originator's order, had notice that
(2004 Ed.)
62A.4A-208
payment of a payment order issued by the originator might be
made by the beneficiary's bank on the basis of an identifying
or bank account number even if it identifies a person different
from the named beneficiary. Proof of notice may be made by
any admissible evidence. The originator's bank satisfies the
burden of proof if it proves that the originator, before the payment order was accepted, signed a writing stating the information to which the notice relates.
(4) In a case governed by subsection (2)(a) of this section, if the beneficiary's bank rightfully pays the person identified by number and that person was not entitled to receive
payment from the originator, the amount paid may be recovered from that person to the extent allowed by the law governing mistake and restitution as follows:
(a) If the originator is obliged to pay its payment order as
stated in subsection (3) of this section, the originator has the
right to recover.
(b) If the originator is not a bank and is not obliged to pay
its payment order, the originator's bank has the right to
recover. [1991 sp.s. c 21 § 4A-207.]
62A.4A-208 Misdescription of intermediary bank or
beneficiary's bank. (1) This subsection applies to a payment
order identifying an intermediary bank or the beneficiary's
bank only by an identifying number.
(a) The receiving bank may rely on the number as the
proper identification of the intermediary or beneficiary's
bank and need not determine whether the number identifies a
bank.
(b) The sender is obliged to compensate the receiving
bank for any loss and expenses incurred by the receiving
bank as a result of its reliance on the number in executing or
attempting to execute the order.
(2) This subsection applies to a payment order identifying an intermediary bank or the beneficiary's bank both by
name and an identifying number if the name and number
identify different persons.
(a) If the sender is a bank, the receiving bank may rely on
the number as the proper identification of the intermediary or
beneficiary's bank if the receiving bank, when it executes the
sender's order, does not know that the name and number identify different persons. The receiving bank need not determine
whether the name and number refer to the same person or
whether the number refers to a bank. The sender is obliged to
compensate the receiving bank for any loss and expenses
incurred by the receiving bank as a result of its reliance on the
number in executing or attempting to execute the order.
(b) If the sender is not a bank and the receiving bank
proves that the sender, before the payment order was
accepted, had notice that the receiving bank might rely on the
number as the proper identification of the intermediary or
beneficiary's bank even if it identifies a person different from
the bank identified by name, the rights and obligations of the
sender and the receiving bank are governed by subsection
(2)(a) of this section, as though the sender were a bank. Proof
of notice may be made by any admissible evidence. The
receiving bank satisfies the burden of proof if it proves that
the sender, before the payment order was accepted, signed a
writing stating the information to which the notice relates.
(c) Regardless of whether the sender is a bank, the
receiving bank may rely on the name as the proper identifica62A.4A-208
[Title 62A RCW—page 79]
62A.4A-209
Title 62A RCW: Uniform Commercial Code
tion of the intermediary or beneficiary's bank if the receiving
bank, at the time it executes the sender's order, does not know
that the name and number identify different persons. The
receiving bank need not determine whether the name and
number refer to the same person.
(d) If the receiving bank knows that the name and number identify different persons, reliance on either the name or
the number in executing the sender's payment order is a
breach of the obligation stated in RCW 62A.4A-302(1)(a).
[1991 sp.s. c 21 § 4A-208.]
62A.4A-209 Acceptance of payment order. (1) Subject to subsection (4) of this section, a receiving bank other
than the beneficiary's bank accepts a payment order when it
executes the order.
(2) Subject to subsections (3) and (4) of this section, a
beneficiary's bank accepts a payment order at the earliest of
the following times:
(a) When the bank (i) pays the beneficiary as stated in
RCW 62A.4A-405 (1) or (2) or (ii) notifies the beneficiary of
receipt of the order or that the account of the beneficiary has
been credited with respect to the order unless the notice indicates that the bank is rejecting the order or that funds with
respect to the order may not be withdrawn or used until
receipt of payment from the sender of the order;
(b) When the bank receives payment of the entire
amount of the sender's order pursuant to RCW
62A.4A-403(1) (a) or (b); or
(c) The opening of the next funds-transfer business day
of the bank following the payment date of the order if, at that
time, the amount of the sender's order is fully covered by a
withdrawable credit balance in an authorized account of the
sender or the bank has otherwise received full payment from
the sender, unless the order was rejected before that time or is
rejected within (i) one hour after that time, or (ii) one hour
after the opening of the next business day of the sender following the payment date if that time is later. If notice of rejection is received by the sender after the payment date and the
authorized account of the sender does not bear interest, the
bank is obliged to pay interest to the sender on the amount of
the order for the number of days elapsing after the payment
date to the day the sender receives notice or learns that the
order was not accepted, counting that day as an elapsed day.
If the withdrawable credit balance during that period falls
below the amount of the order, the amount of interest payable
is reduced accordingly.
(3) Acceptance of a payment order cannot occur before
the order is received by the receiving bank. Acceptance does
not occur under subsection (2)(b) or (c) of this section if the
beneficiary of the payment order does not have an account
with the receiving bank, the account has been closed, or the
receiving bank is not permitted by law to receive credits for
the beneficiary's account.
(4) A payment order issued to the originator's bank cannot be accepted until the payment date if the bank is the beneficiary's bank, or the execution date if the bank is not the
beneficiary's bank. If the originator's bank executes the originator's payment order before the execution date or pays the
beneficiary of the originator's payment order before the payment date and the payment order is subsequently canceled
pursuant to RCW 62A.4A-211(2), the bank may recover
62A.4A-209
[Title 62A RCW—page 80]
from the beneficiary any payment received to the extent
allowed by the law governing mistake and restitution. [1991
sp.s. c 21 § 4A-209.]
62A.4A-210
62A.4A-210 Rejection of payment order. (1) A payment order is rejected by the receiving bank by a notice of
rejection transmitted to the sender orally, electronically, or in
writing. A notice of rejection need not use any particular
words and is sufficient if it indicates that the receiving bank
is rejecting the order or will not execute or pay the order.
Rejection is effective when the notice is given if transmission
is by a means that is reasonable in the circumstances. If notice
of rejection is given by a means that is not reasonable, rejection is effective when the notice is received. If an agreement
of the sender and receiving bank establishes the means to be
used to reject a payment order, (a) any means complying with
the agreement is reasonable and (b) any means not complying
is not reasonable unless no significant delay in receipt of the
notice resulted from the use of the noncomplying means.
(2) This subsection applies if a receiving bank other than
the beneficiary's bank fails to execute a payment order
despite the existence on the execution date of a withdrawable
credit balance in an authorized account of the sender sufficient to cover the order. If the sender does not receive notice
of rejection of the order on the execution date and the authorized account of the sender does not bear interest, the bank is
obliged to pay interest to the sender on the amount of the
order for the number of days elapsing after the execution date
to the earlier of the day the order is canceled pursuant to
RCW 62A.4A-211(4) or the day the sender receives notice or
learns that the order was not executed, counting the final day
of the period as an elapsed day. If the withdrawable credit
balance during that period falls below the amount of the
order, the amount of interest is reduced accordingly.
(3) If a receiving bank suspends payments, all unaccepted payment orders issued to it are deemed rejected at the
time the bank suspends payments.
(4) Acceptance of a payment order precludes a later
rejection of the order. Rejection of a payment order precludes
a later acceptance of the order. [1991 sp.s. c 21 § 4A-210.]
62A.4A-211
62A.4A-211 Cancellation and amendment of payment order. (1) A communication of the sender of a payment order canceling or amending the order may be transmitted to the receiving bank orally, electronically, or in writing.
If a security procedure is in effect between the sender and the
receiving bank, the communication is not effective to cancel
or amend the order unless the communication is verified pursuant to the security procedure or the bank agrees to the cancellation or amendment.
(2) Subject to subsection (1) of this section, a communication by the sender canceling or amending a payment order
is effective to cancel or amend the order if notice of the communication is received at a time and in a manner affording the
receiving bank a reasonable opportunity to act on the communication before the bank accepts the payment order.
(3) After a payment order has been accepted, cancellation or amendment of the order is not effective unless the
receiving bank agrees or a funds-transfer system rule allows
cancellation or amendment without agreement of the bank.
(2004 Ed.)
Funds Transfers
(a) With respect to a payment order accepted by a receiving bank other than the beneficiary's bank, cancellation or
amendment is not effective unless a conforming cancellation
or amendment of the payment order issued by the receiving
bank is also made.
(b) With respect to a payment order accepted by the beneficiary's bank, cancellation or amendment is not effective
unless the order was issued in execution of an unauthorized
payment order, or because of a mistake by a sender in the
funds transfer which resulted in the issuance of a payment
order (i) that is a duplicate of a payment order previously
issued by the sender, (ii) that orders payment to a beneficiary
not entitled to receive payment from the originator, or (iii)
that orders payment in an amount greater than the amount the
beneficiary was entitled to receive from the originator. If the
payment order is canceled or amended, the beneficiary's bank
is entitled to recover from the beneficiary any amount paid to
the beneficiary to the extent allowed by the law governing
mistake and restitution.
(4) An unaccepted payment order is canceled by operation of law at the close of the fifth funds-transfer business day
of the receiving bank after the execution date or payment date
of the order.
(5) A canceled payment order cannot be accepted. If an
accepted payment order is canceled, the acceptance is nullified and no person has any right or obligation based on the
acceptance. Amendment of a payment order is deemed to be
cancellation of the original order at the time of amendment
and issue of a new payment order in the amended form at the
same time.
(6) Unless otherwise provided in an agreement of the
parties or in a funds-transfer system rule, if the receiving
bank, after accepting a payment order, agrees to cancellation
or amendment of the order by the sender or is bound by a
funds-transfer system rule allowing cancellation or amendment without the bank's agreement, the sender, whether or
not cancellation or amendment is effective, is liable to the
bank for any loss and expenses, including reasonable attorneys' fees, incurred by the bank as a result of the cancellation
or amendment or attempted cancellation or amendment.
(7) A payment order is not revoked by the death or legal
incapacity of the sender unless the receiving bank knows of
the death or of an adjudication of incapacity by a court of
competent jurisdiction and has reasonable opportunity to act
before acceptance of the order.
(8) A funds-transfer system rule is not effective to the
extent it conflicts with subsection (3)(b) of this section.
[1991 sp.s. c 21 § 4A-211.]
62A.4A-212 Liability and duty of receiving bank
regarding unaccepted payment order. If a receiving bank
fails to accept a payment order that [it] is obliged by express
agreement to accept, the bank is liable for breach of the
agreement to the extent provided in the agreement or in this
Article, but does not otherwise have any duty to accept a payment order or, before acceptance, to take any action, or
refrain from taking action, with respect to the order except as
provided in this Article or by express agreement. Liability
based on acceptance arises only when acceptance occurs as
stated in RCW 62A.4A-209 and liability is limited to that
provided in this Article. A receiving bank is not the agent of
62A.4A-212
(2004 Ed.)
62A.4A-302
the sender or beneficiary of the payment order it accepts, or
of any other party to the funds transfer, and the bank owes no
duty to any party to the funds transfer except as provided in
this Article or by express agreement. [1991 sp.s. c 21 §
4A-212.]
62A.4A-301
62A.4A-301 Execution and execution date. (1) A payment order is "executed" by the receiving bank when it issues
a payment order intended to carry out the payment order
received by the bank. A payment order received by the beneficiary's bank can be accepted but cannot be executed.
(2) "Execution date" of a payment order means the day
on which the receiving bank may properly issue a payment
order in execution of the sender's order. The execution date
may be determined by instruction of the sender but cannot be
earlier than the day the order is received and, unless otherwise determined, is the day the order is received. If the
sender's instruction states a payment date, the execution date
is the payment date or an earlier date on which execution is
reasonably necessary to allow payment to the beneficiary on
the payment date. [1991 sp.s. c 21 § 4A-301.]
62A.4A-302
62A.4A-302 Obligations of receiving bank in execution of payment order. (1) Except as provided in subsections (2) through (4) of this section, if the receiving bank
accepts a payment order pursuant to RCW 62A.4A-209(1),
the bank has the following obligations in executing the order.
(a) The receiving bank is obliged to issue, on the execution date, a payment order complying with the sender's order
and to follow the sender's instructions concerning (i) any
intermediary bank or funds-transfer system to be used in carrying out the funds transfer, or (ii) the means by which payment orders are to be transmitted in the funds transfer. If the
originator's bank issues a payment order to an intermediary
bank, the originator's bank is obliged to instruct the intermediary bank according to the instruction of the originator. An
intermediary bank in the funds transfer is similarly bound by
an instruction given to it by the sender of the payment order
it accepts.
(b) If the sender's instruction states that the funds transfer
is to be carried out telephonically or by wire transfer or otherwise indicates that the funds transfer is to be carried out by
the most expeditious means, the receiving bank is obliged to
transmit its payment order by the most expeditious available
means, and to instruct any intermediary bank accordingly. If
a sender's instruction states a payment date, the receiving
bank is obliged to transmit its payment order at a time and by
means reasonably necessary to allow payment to the beneficiary on the payment date or as soon thereafter as is feasible.
(2) Unless otherwise instructed, a receiving bank executing a payment order may (a) use any funds-transfer system if
use of that system is reasonable in the circumstances, and (b)
issue a payment order to the beneficiary's bank or to an intermediary bank through which a payment order conforming to
the sender's order can expeditiously be issued to the beneficiary's bank if the receiving bank exercises ordinary care in
the selection of the intermediary bank. A receiving bank is
not required to follow an instruction of the sender designating
a funds-transfer system to be used in carrying out the funds
transfer if the receiving bank, in good faith, determines that it
[Title 62A RCW—page 81]
62A.4A-303
Title 62A RCW: Uniform Commercial Code
is not feasible to follow the instruction or that following the
instruction would unduly delay completion of the funds
transfer.
(3) Unless subsection (1)(b) of this section applies or the
receiving bank is otherwise instructed, the bank may execute
a payment order by transmitting its payment order by first
class mail or by any means reasonable in the circumstances.
If the receiving bank is instructed to execute the sender's
order by transmitting its payment order by a particular means,
the receiving bank may issue its payment order by the means
stated or by any means as expeditious as the means stated.
(4) Unless instructed by the sender, (a) the receiving
bank may not obtain payment of its charges for services and
expenses in connection with the execution of the sender's
order by issuing a payment order in an amount equal to the
amount of the sender's order less the amount of the charges,
and (b) may not instruct a subsequent receiving bank to
obtain payment of its charges in the same manner. [1991
sp.s. c 21 § 4A-302.]
62A.4A-303
62A.4A-303 Erroneous execution of payment order.
(1) A receiving bank that (a) executes the payment order of
the sender by issuing a payment order in an amount greater
than the amount of the sender's order, or (b) issues a payment
order in execution of the sender's order and then issues a
duplicate order, is entitled to payment of the amount of the
sender's order under RCW 62A.4A-402(3) if that subsection
is otherwise satisfied. The bank is entitled to recover from the
beneficiary of the erroneous order the excess payment
received to the extent allowed by the law governing mistake
and restitution.
(2) A receiving bank that executes the payment order of
the sender by issuing a payment order in an amount less than
the amount of the sender's order is entitled to payment of the
amount of the sender's order under RCW 62A.4A-402(3) if
(a) that subsection is otherwise satisfied and (b) the bank corrects its mistake by issuing an additional payment order for
the benefit of the beneficiary of the sender's order. If the error
is not corrected, the issuer of the erroneous order is entitled to
receive or retain payment from the sender of the order it
accepted only to the extent of the amount of the erroneous
order. This subsection does not apply if the receiving bank
executes the sender's payment order by issuing a payment
order in an amount less than the amount of the sender's order
for the purpose of obtaining payment of its charges for services and expenses pursuant to instruction of the sender.
(3) If a receiving bank executes the payment order of the
sender by issuing a payment order to a beneficiary different
from the beneficiary of the sender's order and the funds transfer is completed on the basis of that error, the sender of the
payment order that was erroneously executed and all previous senders in the funds transfer are not obliged to pay the
payment orders they issued. The issuer of the erroneous order
is entitled to recover from the beneficiary of the order the
payment received to the extent allowed by the law governing
mistake and restitution. [1991 sp.s. c 21 § 4A-303.]
62A.4A-304
62A.4A-304 Duty of sender to report erroneously
executed payment order. If the sender of a payment order
that is erroneously executed as stated in RCW 62A.4A-303
[Title 62A RCW—page 82]
receives notification from the receiving bank that the order
was executed or that the sender's account was debited with
respect to the order, the sender has a duty to exercise ordinary
care to determine, on the basis of information available to the
sender, that the order was erroneously executed and to notify
the bank of the relevant facts within a reasonable time not
exceeding ninety days after the notification from the bank
was received by the sender. If the sender fails to perform that
duty, the bank is not obliged to pay interest on any amount
refundable to the sender under RCW 62A.4A-402(4) for the
period before the bank learns of the execution error. The bank
is not entitled to any recovery from the sender on account of
a failure by the sender to perform the duty stated in this section. [1991 sp.s. c 21 § 4A-304.]
62A.4A-305
62A.4A-305 Liability for late or improper execution
or failure to execute payment order. (1) If a funds transfer
is completed but execution of a payment order by the receiving bank in breach of RCW 62A.4A-302 results in delay in
payment to the beneficiary, the bank is obliged to pay interest
to either the originator or the beneficiary of the funds transfer
for the period of delay caused by the improper execution.
Except as provided in subsection (3) of this section, additional damages are not recoverable.
(2) If execution of a payment order by a receiving bank
in breach of RCW 62A.4A-302 results in (a) noncompletion
of the funds transfer, (b) failure to use an intermediary bank
designated by the originator, or (c) issuance of a payment
order that does not comply with the terms of the payment
order of the originator, the bank is liable to the originator for
its expenses in the funds transfer and for incidental expenses
and interest losses, to the extent not covered by subsection (1)
of this section, resulting from the improper execution. Except
as provided in subsection (3) of this section, additional damages are not recoverable.
(3) In addition to the amounts payable under subsections
(1) and (2) of this section, damages, including consequential
damages, are recoverable to the extent provided in an express
written agreement of the receiving bank.
(4) If a receiving bank fails to execute a payment order it
was obliged by express agreement to execute, the receiving
bank is liable to the sender for its expenses in the transaction
and for incidental expenses and interest losses resulting from
the failure to execute. Additional damages, including consequential damages, are recoverable to the extent provided in
an express written agreement of the receiving bank, but are
not otherwise recoverable.
(5) Reasonable attorneys' fees are recoverable if demand
for compensation under subsection (1) or (2) of this section is
made and refused before an action is brought on the claim. If
a claim is made for breach of an agreement under subsection
(4) of this section and the agreement does not provide for
damages, reasonable attorneys' fees are recoverable if
demand for compensation under subsection (4) of this section
is made and refused before an action is brought on the claim.
(6) Except as stated in this section, the liability of a
receiving bank under subsections (1) and (2) of this section
may not be varied by agreement. [1991 sp.s. c 21 § 4A-305.]
(2004 Ed.)
Funds Transfers
62A.4A-401 Payment date. "Payment date" of a payment order means the day on which the amount of the order
is payable to the beneficiary by the beneficiary's bank. The
payment date may be determined by instruction of the sender
but cannot be earlier than the day the order is received by the
beneficiary's bank and, unless otherwise determined, is the
day the order is received by the beneficiary's bank. [1991
sp.s. c 21 § 4A-401.]
62A.4A-401
62A.4A-402 Obligation of sender to pay receiving
bank. (1) This section is subject to RCW 62A.4A-205 and
62A.4A-207.
(2) With respect to a payment order issued to the beneficiary's bank, acceptance of the order by the bank obliges the
sender to pay the bank the amount of the order, but payment
is not due until the payment date of the order.
(3) This subsection is subject to subsection (5) of this
section and to RCW 62A.4A-303. With respect to a payment
order issued to a receiving bank other than the beneficiary's
bank, acceptance of the order by the receiving bank obliges
the sender to pay the bank the amount of the sender's order.
Payment by the sender is not due until the execution date of
the sender's order. The obligation of that sender to pay its
payment order is excused if the funds transfer is not completed by acceptance by the beneficiary's bank of a payment
order instructing payment to the beneficiary of that sender's
payment order.
(4) If the sender of a payment order pays the order and
was not obliged to pay all or part of the amount paid, the bank
receiving payment is obliged to refund payment to the extent
the sender was not obliged to pay. Except as provided in
RCW 62A.4A-204 and 62A.4A-304, interest is payable on
the refundable amount from the date of payment.
(5) If a funds transfer is not completed as stated in this
subsection and an intermediary bank is obliged to refund payment as stated in subsection (4) of this section but is unable to
do so because not permitted by applicable law or because the
bank suspends payments, a sender in the funds transfer that
executed a payment order in compliance with an instruction,
as stated in RCW 62A.4A-302(1)(a), to route the funds transfer through that intermediary bank is entitled to receive or
retain payment from the sender of the payment order that it
accepted. The first sender in the funds transfer that issued an
instruction requiring routing through that intermediary bank
is subrogated to the right of the bank that paid the intermediary bank to refund as stated in subsection (4) of this section.
(6) The right of the sender of a payment order to be
excused from the obligation to pay the order as stated in subsection (3) of this section or to receive refund under subsection (4) of this section may not be varied by agreement.
[1991 sp.s. c 21 § 4A-402.]
62A.4A-402
62A.4A-403 Payment by sender to receiving bank.
(1) Payment of the sender's obligation under RCW
62A.4A-402 to pay the receiving bank occurs as follows:
(a) If the sender is a bank, payment occurs when the
receiving bank receives final settlement of the obligation
through a federal reserve bank or through a funds-transfer
system.
(b) If the sender is a bank and the sender (i) credited an
account of the receiving bank with the sender, or (ii) caused
62A.4A-403
(2004 Ed.)
62A.4A-404
an account of the receiving bank in another bank to be credited, payment occurs when the credit is withdrawn or, if not
withdrawn, at midnight of the day on which the credit is withdrawable and the receiving bank learns of that fact.
(c) If the receiving bank debits an account of the sender
with the receiving bank, payment occurs when the debit is
made to the extent the debit is covered by a withdrawable
credit balance in the account.
(2) If the sender and receiving bank are members of a
funds-transfer system that nets obligations multilaterally
among participants, the receiving bank receives final settlement when settlement is complete in accordance with the
rules of the system. The obligation of the sender to pay the
amount of a payment order transmitted through the fundstransfer system may be satisfied, to the extent permitted by
the rules of the system, by setting off and applying against the
sender's obligation the right of the sender to receive payment
from the receiving bank of the amount of any other payment
order transmitted to the sender by the receiving bank through
the funds-transfer system. The aggregate balance of obligations owed by each sender to each receiving bank in the
funds-transfer system may be satisfied, to the extent permitted by the rules of the system, by setting off and applying
against that balance the aggregate balance of obligations
owed to the sender by other members of the system. The
aggregate balance is determined after the right of setoff stated
in the second sentence of this subsection has been exercised.
(3) If two banks transmit payment orders to each other
under an agreement that settlement of the obligations of each
bank to the other under RCW 62A.4A-402 will be made at
the end of the day or other period, the total amount owed with
respect to all orders transmitted by one bank shall be set off
against the total amount owed with respect to all orders transmitted by the other bank. To the extent of the setoff, each
bank has made payment to the other.
(4) In a case not covered by subsection (1) of this section, the time when payment of the sender's obligation under
RCW 62A.4A-402 (2) or (3) occurs is governed by applicable principles of law that determine when an obligation is satisfied. [1991 sp.s. c 21 § 4A-403.]
62A.4A-404 Obligation of beneficiary's bank to pay
and give notice to beneficiary. (1) Subject to RCW
62A.4A-211(5), 62A.4A-405(4), and 62A.4A-405(5), if a
beneficiary's bank accepts a payment order, the bank is
obliged to pay the amount of the order to the beneficiary of
the order. Payment is due on the payment date of the order,
but if acceptance occurs on the payment date after the close
of the funds-transfer business day of the bank, payment is due
on the next funds-transfer business day. If the bank refuses to
pay after demand by the beneficiary and receipt of notice of
particular circumstances that will give rise to consequential
damages as a result of nonpayment, the beneficiary may
recover damages resulting from the refusal to pay to the
extent the bank had notice of the damages, unless the bank
proves that it did not pay because of a reasonable doubt concerning the right of the beneficiary to payment.
(2) If a payment order accepted by the beneficiary's bank
instructs payment to an account of the beneficiary, the bank is
obliged to notify the beneficiary of receipt of the order before
midnight of the next funds-transfer business day following
62A.4A-404
[Title 62A RCW—page 83]
62A.4A-405
Title 62A RCW: Uniform Commercial Code
the payment date. If the payment order does not instruct payment to an account of the beneficiary, the bank is required to
notify the beneficiary only if notice is required by the order.
Notice may be given by first class mail or any other means
reasonable in the circumstances. If the bank fails to give the
required notice, the bank is obliged to pay interest to the beneficiary on the amount of the payment order from the day
notice should have been given until the day the beneficiary
learned of receipt of the payment order by the bank. No other
damages are recoverable. Reasonable attorneys' fees are also
recoverable if demand for interest is made and refused before
an action is brought on the claim.
(3) The right of a beneficiary to receive payment and
damages as stated in subsection (a) [subsection (1) of this
section] may not be varied by agreement or a funds-transfer
system rule. The right of a beneficiary to be notified as stated
in subsection (2) of this section may be varied by agreement
of the beneficiary or by a funds-transfer system rule if the
beneficiary is notified of the rule before initiation of the funds
transfer. [1991 sp.s. c 21 § 4A-404.]
62A.4A-405
62A.4A-405 Payment by beneficiary's bank to beneficiary. (1) If the beneficiary's bank credits an account of the
beneficiary of a payment order payment of the bank's obligation under RCW 62A.4A-404(1) occurs when and to the
extent (a) the beneficiary is notified of the right to withdraw
the credit, (b) the bank lawfully applies the credit to a debt of
the beneficiary, or (c) funds with respect to the order are otherwise made available to the beneficiary by the bank.
(2) If the beneficiary's bank does not credit an account of
the beneficiary of a payment order, the time when payment of
the bank's obligation under RCW 62A.4A-404(1) occurs is
governed by principles of law that determine when an obligation is satisfied.
(3) Except as stated in subsections (4) and (5) of this act
[section], if the beneficiary's bank pays the beneficiary of a
payment order under a condition to payment or agreement of
the beneficiary giving the bank the right to recover payment
from the beneficiary if the bank does not receive payment of
the order, the condition to payment or agreement is not
enforceable.
(4) A funds-transfer system rule may provide that payments made to beneficiaries of funds transfers made through
the system are provisional until receipt of payment by the
beneficiary's bank of the payment order it accepted. A beneficiary's bank that makes a payment that is provisional under
the rule is entitled to refund from the beneficiary if (a) the
rule requires that both the beneficiary and the originator be
given notice of the provisional nature of the payment before
the funds transfer is initiated, (b) the beneficiary, the beneficiary's bank and the originator's bank agreed to be bound by
the rule, and (c) the beneficiary's bank did not receive payment of the payment order that it accepted. If the beneficiary
is obliged to refund payment to the beneficiary's bank, acceptance of the payment order by the beneficiary's bank is nullified and no payment by the originator of the funds transfer to
the beneficiary occurs under RCW 62A.4A-406.
(5) This subsection applies to a funds transfer that
includes a payment order transmitted over a funds-transfer
system that (a) nets obligations multilaterally among participants, and (b) has in effect a loss-sharing agreement among
[Title 62A RCW—page 84]
participants for the purpose of providing funds necessary to
complete settlement of the obligations of one or more participants that do not meet their settlement obligations. If the
beneficiary's bank in the funds transfer accepts a payment
order and the system fails to complete settlement pursuant to
its rules with respect to any payment order in the funds transfer, (i) the acceptance by the beneficiary's bank is nullified
and no person has any right or obligation based on the acceptance, (ii) the beneficiary's bank is entitled to recover payment from the beneficiary, (iii) no payment by the originator
to the beneficiary occurs under RCW 62A.4A-406, and (iv)
subject to RCW 62A.4A-402(5), each sender in the funds
transfer is excused from its obligation to pay its payment
order under RCW 62A.4A-402(5), each sender in the funds
transfer is excused from its obligation to pay its payment
order under RCW 62A.4A-402(3) because the funds transfer
has not been completed. [1991 sp.s. c 21 § 4A-405.]
62A.4A-406
62A.4A-406 Payment by originator to beneficiary;
discharge of underlying obligation. (1) Subject to RCW
62A.4A-211(5), 62A.4A-405(4), and 62A.4A-405(5), the
originator of a funds transfer pays the beneficiary of the originator's payment order (a) at the time a payment order for the
benefit of the beneficiary is accepted by the beneficiary's
bank in the funds transfer and (b) in an amount equal to the
amount of the order accepted by the beneficiary's bank, but
not more than the amount of the originator's order.
(2) If payment under subsection (1) of this section is
made to satisfy an obligation, the obligation is discharged to
the same extent discharge would result from payment to the
beneficiary of the same amount in money, unless (a) the payment under subsection (1) of this section was made by a
means prohibited by the contract of the beneficiary with
respect to the obligation, (b) the beneficiary, within a reasonable time after receiving notice of receipt of the order by the
beneficiary's bank, notified the originator of the beneficiary's
refusal of the payment, (c) funds with respect to the order
were not withdrawn by the beneficiary or applied to a debt of
the beneficiary, and (d) the beneficiary would suffer a loss
that could reasonably have been avoided if payment had been
made by a means complying with the contract. If payment by
the originator does not result in discharge under this section,
the originator is subrogated to the rights of the beneficiary to
receive payment from the beneficiary's bank under RCW
62A.4A-404(1).
(3) For the purpose of determining whether discharge of
an obligation occurs under subsection (2) of this section, if
the beneficiary's bank accepts a payment order in an amount
equal to the amount of the originator's payment order less
charges of one or more receiving banks in the funds transfer,
payment to the beneficiary is deemed to be in the amount of
the originator's order unless upon demand by the beneficiary
the originator does not pay the beneficiary the amount of the
deducted charges.
(4) Rights of the originator or of the beneficiary of a
funds transfer under this section may be varied only by agreement of the originator and the beneficiary. [1991 sp.s. c 21 §
4A-406.]
(2004 Ed.)
Funds Transfers
62A.4A-501
62A.4A-501 Variation by agreement and effect of
funds-transfer system rule. (1) Except as otherwise provided in this Article, the rights and obligations of a party to a
funds transfer may be varied by agreement of the affected
party.
(2) "Funds-transfer system rule" means a rule of an association of banks (a) governing transmission of payment
orders by means of a funds-transfer system of the association
or rights and obligations with respect to those orders, or (b) to
the extent the rule governs rights and obligations between
banks that are parties to a funds transfer in which a federal
reserve bank, acting as an intermediary bank, sends a payment order to the beneficiary's bank. Except as otherwise provided in this Article, a funds-transfer system rule governing
rights and obligations between participating banks using the
system may be effective even if the rule conflicts with the
Article and indirectly affects another party to the funds transfer who does not consent to the rule. A funds-transfer system
rule may also govern rights and obligations of parties other
than participating banks using the system to the extent stated
i n R C W 6 2 A . 4 A -4 0 4 ( 3 ) , 6 2 A . 4 A -4 0 5 ( 4 ) , a n d
62A.4A-507(3). [1991 sp.s. c 21 § 4A-501.]
62A.4A-502
62A.4A-502 Creditor process served on receiving
bank; setoff by beneficiary's bank. (1) As used in this section, "creditor process" means levy, attachment, garnishment,
notice of lien, sequestration, or similar process issued by or
on behalf of a creditor or other claimant with respect to an
account.
(2) This subsection applies to creditor process with
respect to an authorized account of the sender of a payment
order if the creditor process is served on the receiving bank.
For the purpose of determining rights with respect to the
creditor process, if the receiving bank accepts the payment
order the balance in the authorized account is deemed to be
reduced by the amount of the payment order to the extent the
bank did not otherwise receive payment of the order, unless
the creditor process is served at the time and in a manner
affording the bank a reasonable opportunity to act on it before
the bank accepts the payment order.
(3) If a beneficiary's bank has received a payment order
for payment to the beneficiary's account in the bank, the following rules apply:
(a) The bank may credit the beneficiary's account. The
amount credited may be set off against an obligation owed by
the beneficiary to the bank or may be applied to satisfy creditor process served on the bank with respect to the account.
(b) The bank may credit the beneficiary's account and
allow withdrawal of the amount credited unless creditor process with respect to the account is served at the time and in a
manner affording the bank a reasonable opportunity to act to
prevent withdrawal.
(c) If creditor process with respect to the beneficiary's
account has been served and the bank has had a reasonable
opportunity to act on it, the bank may not reject the payment
order except for a reason unrelated to the service of process.
(4) Creditor process with respect to a payment by the
originator to the beneficiary pursuant to a funds transfer may
be served only on the beneficiary's bank with respect to the
debt owed by that bank to the beneficiary. Any other bank
(2004 Ed.)
62A.4A-506
served with the creditor process is not obliged to act with
respect to the process. [1991 sp.s. c 21 § 4A-502.]
62A.4A-503
62A.4A-503 Injunction or restraining order with
respect to funds transfer. For proper cause and in compliance with applicable law, a court may restrain (1) a person
from issuing a payment order to initiate a funds transfer, (2)
an originator's bank from executing the payment order of the
originator, or (3) the beneficiary's bank from releasing funds
to the beneficiary or the beneficiary from withdrawing the
funds. A court may not otherwise restrain a person from issuing a payment order, paying or receiving payment of a payment order, or otherwise acting with respect to a funds transfer. [1991 sp.s. c 21 § 4A-503.]
62A.4A-504
62A.4A-504 Order in which items and payment
orders may be charged to account; order of withdrawals
from account. (1) If a receiving bank has received more than
one payment order of the sender or one or more payment
orders and other items that are payable from the sender's
account, the bank may charge the sender's account with
respect to the various orders and items in any sequence.
(2) In determining whether a credit to an account has
been withdrawn by the holder of the account or applied to a
debt of the holder of the account, credits first made to the
account are first withdrawn or applied. [1991 sp.s. c 21 §
4A-504.]
62A.4A-505
62A.4A-505 Preclusion of objection to debit of customer's account. If a receiving bank has received payment
from its customer with respect to a payment order issued in
the name of the customer as sender and accepted by the bank,
and the customer received notification reasonably identifying
the order, the customer is precluded from asserting that the
bank is not entitled to retain the payment unless the customer
notifies the bank of the customer's objection to the payment
within one year after the notification was received by the customer. [1991 sp.s. c 21 § 4A-505.]
62A.4A-506
62A.4A-506 Rate of interest. (1) If, under this Article,
a receiving bank is obliged to pay interest with respect to a
payment order issued to the bank, the amount payable may be
determined (a) by agreement of the sender and receiving
bank, or (b) by a funds-transfer system rule if the payment
order is transmitted through a funds-transfer system.
(2) If the amount of interest is not determined by an
agreement or rule as stated in subsection (1) of this section,
the amount is calculated by multiplying the applicable federal
funds rate by the amount on which interest is payable, and
then multiplying the product by the number of days for which
interest is payable. The applicable federal funds rate is the
average of the federal funds rates published by the federal
reserve bank of New York for each of the days for which
interest is payable divided by three hundred sixty. The federal
funds rate for any day on which a published rate is not available is the same as the published rate for the next preceding
day for which there is a published rate. If a receiving bank
that accepted a payment order is required to refund payment
to the sender of the order because the funds transfer was not
completed, but the failure to complete was not due to any
[Title 62A RCW—page 85]
62A.4A-507
Title 62A RCW: Uniform Commercial Code
fault by the bank, the interest payable is reduced by a percentage equal to the reserve requirement on deposits of the
receiving bank. [1991 sp.s. c 21 § 4A-506.]
62A.4A-507
62A.4A-507 Choice of law. (1) The following rules
apply unless the affected parties otherwise agree or subsection (3) of this section applies;
(a) The rights and obligations between the sender of a
payment order and the receiving bank are governed by the
law of the jurisdiction in which the receiving bank is located.
(b) The rights and obligations between the beneficiary's
bank and the beneficiary are governed by the law of the jurisdiction in which the beneficiary's bank is located.
(c) The issue of when payment is made pursuant to a
funds transfer by the originator to the beneficiary is governed
by the law of the jurisdiction in which the beneficiary's bank
is located.
(2) If the parties described in each paragraph of subsection (1) of this section have made an agreement selecting the
law of a particular jurisdiction to govern rights and obligations between each other, the law of that jurisdiction governs
those rights and obligations, whether or not the payment
order or the funds transfer bears a reasonable relation to that
jurisdiction.
(3) A funds-transfer system rule may select the law of a
particular jurisdiction to govern (a) rights and obligations
between participating banks with respect to payment orders
transmitted or processed through the system, or (b) the rights
and obligations of some or all parties to a funds transfer any
part of which is carried out by means of the system. A choice
of law made pursuant to (a) of this subsection is binding on
participating banks. A choice of law made pursuant to (b) of
this subsection is binding on the originator, other sender, or a
receiving bank having notice that the funds-transfer system
might be used in the funds transfer and of the choice of law
by the system when the originator, other sender, or receiving
bank issued or accepted a payment order. The beneficiary of
a funds transfer is bound by the choice of law if, when the
funds transfer is initiated, the beneficiary has notice that the
funds-transfer system might be used in the funds transfer and
of the choice of law by the system. The law of a jurisdiction
selected pursuant to this subsection may govern, whether or
not that law bears a reasonable relation to the matter in issue.
(4) In the event of inconsistency between an agreement
under subsection (2) of this section and a choice-of-law rule
under subsection (3) of this section, the agreement under subsection (2) of this section prevails.
(5) If a funds transfer is made by use of more than one
funds-transfer system and there is inconsistency between
choice-of-law rules of the systems, the matter in issue is governed by the law of the selected jurisdiction that has the most
significant relationship to the matter in issue. [1991 sp.s. c 21
§ 4A-507.]
Article 5
Article 5
LETTERS OF CREDIT
Sections
62A.5-101 Short title.
62A.5-1013 Applicability—Transition provision.
62A.5-1015 Savings—Transition provision.
[Title 62A RCW—page 86]
62A.5-102
62A.5-103
62A.5-104
62A.5-105
62A.5-106
62A.5-107
62A.5-108
62A.5-109
62A.5-110
62A.5-111
62A.5-112
62A.5-113
62A.5-114
62A.5-115
62A.5-116
62A.5-117
62A.5-118
Definitions.
Scope.
Formal requirements.
Consideration.
Issuance, amendment, cancellation, and duration.
Confirmer, nominated person, and adviser.
Issuer's rights and obligations.
Fraud and forgery.
Warranties.
Remedies.
Transfer of letter of credit.
Transfer by operation of law.
Assignment of proceeds.
Statute of limitations.
Choice of law and forum.
Subrogation of issuer, applicant, and nominated person.
Security interest of issuer or nominated person.
62A.5-101
62A.5-101 Short title. This Article shall be known and
may be cited as Uniform Commercial Code—Letters of
Credit. [1965 ex.s. c 157 § 5-101.]
62A.5-1013
62A.5-1013 Applicability—Transition provision.
Chapter 56, Laws of 1997 applies to a letter of credit that is
issued on or after July 27, 1997. Chapter 56, Laws of 1997
does not apply to a transaction, event, obligation, or duty arising out of or associated with a letter of credit that was issued
before July 27, 1997. [1997 c 56 § 1.]
62A.5-1015
62A.5-1015 Savings—Transition provision. A transaction arising out of or associated with a letter of credit that
was issued before July 27, 1997, and the rights, obligations,
and interests flowing from that transaction are governed by
any statute or other law amended or repealed by chapter 56,
Laws of 1997 as if repeal or amendment had not occurred and
may be terminated, completed, consummated, or enforced
under that statute or other law. [1997 c 56 § 2.]
62A.5-102
62A.5-102 Definitions. (1) The definitions in this section apply throughout this Article unless the context clearly
requires otherwise:
(a) "Adviser" means a person who, at the request of the
issuer, a confirmer, or another adviser, notifies or requests
another adviser to notify the beneficiary that a letter of credit
has been issued, confirmed, or amended.
(b) "Applicant" means a person at whose request or for
whose account a letter of credit is issued. The term includes a
person who requests an issuer to issue a letter of credit on
behalf of another if the person making the request undertakes
an obligation to reimburse the issuer.
(c) "Beneficiary" means a person who under the terms of
a letter of credit is entitled to have its complying presentation
honored. The term includes a person to whom drawing rights
have been transferred under a transferable letter of credit.
(d) "Confirmer" means a nominated person who undertakes, at the request or with the consent of the issuer, to honor
a presentation under a letter of credit issued by another.
(e) "Dishonor" of a letter of credit means failure timely
to honor or to take an interim action, such as acceptance of a
draft, that may be required by the letter of credit.
(f) "Document" means a draft or other demand, document of title, investment security, certificate, invoice, or
other record, statement, or representation of fact, law, right,
or opinion (i) which is presented in a written or other medium
permitted by the letter of credit or, unless prohibited by the
(2004 Ed.)
Letters of Credit
letter of credit, by the standard practice referred to in RCW
62A.5-108(5) and (ii) which is capable of being examined for
compliance with the terms and conditions of the letter of
credit. A document may not be oral.
(g) "Good faith" means honesty in fact in the conduct or
transaction concerned.
(h) "Honor" of a letter of credit means performance of
the issuer's undertaking in the letter of credit to pay or deliver
an item of value. Unless the letter of credit otherwise provides, "honor" occurs:
(i) Upon payment;
(ii) If the letter of credit provides for acceptance, upon
acceptance of a draft and, at maturity, its payment; or
(iii) If the letter of credit provides for incurring a
deferred obligation, upon incurring the obligation and, at
maturity, its performance.
(i) "Issuer" means a bank or other person that issues a letter of credit, but does not include an individual who makes an
engagement for personal, family, or household purposes.
(j) "Letter of credit" means a definite undertaking that
satisfies the requirements of RCW 62A.5-104 by an issuer to
a beneficiary at the request or for the account of an applicant
or, in the case of a financial institution, to itself or for its own
account, to honor a documentary presentation by payment or
delivery of an item of value.
(k) "Nominated person" means a person whom the issuer
(i) designates or authorizes to pay, accept, negotiate, or otherwise give value under a letter of credit and (ii) undertakes by
agreement or custom and practice to reimburse.
(l) "Presentation" means delivery of a document to an
issuer or nominated person for honor or giving of value under
a letter of credit.
(m) "Presenter" means a person making a presentation as
or on behalf of a beneficiary or nominated person.
(n) "Record" means information that is inscribed on a
tangible medium, or that is stored in an electronic or other
medium and is retrievable in perceivable form.
(o) "Successor of a beneficiary" means a person who
succeeds to substantially all of the rights of a beneficiary by
operation of law, including a corporation with or into which
the beneficiary has been merged or consolidated, an administrator, executor, personal representative, trustee in bankruptcy, debtor in possession, liquidator, and receiver.
(2) Definitions in other Articles applying to this Article
and the sections in which they appear are:
"Accept" or
"Acceptance"
RCW 62A.3-409
"Value"
RCW 62A.3-303, RCW 62A.4-211.
(3) Article 1 contains certain additional general definitions and principles of construction and interpretation applicable throughout this Article. [1997 c 56 § 3; 1965 ex.s. c
157 § 5-102.]
62A.5-103
62A.5-103 Scope. (1) This Article applies to letters of
credit and to certain rights and obligations arising out of
transactions involving letters of credit.
(2) The statement of a rule in this Article does not by
itself require, imply, or negate application of the same or a
different rule to a situation not provided for, or to a person not
specified, in this Article.
(2004 Ed.)
62A.5-107
(3) With the exception of this subsection, subsections (1)
and (4) of this section, RCW 62A.5-102(1) (i) and (j), 62A.5106(4), and 62A.5-114(4), and except to the extent prohibited
in RCW 62A.1-102(3) and 62A.5-117(4), the effect of this
Article may be varied by agreement or by a provision stated
or incorporated by reference in an undertaking. A term in an
agreement or undertaking generally excusing liability or generally limiting remedies for failure to perform obligations is
not sufficient to vary obligations prescribed by this Article.
(4) Rights and obligations of an issuer to a beneficiary or
a nominated person under a letter of credit are independent of
the existence, performance, or nonperformance of a contract
or arrangement out of which the letter of credit arises or
which underlies it, including contracts or arrangements
between the issuer and the applicant and between the applicant and the beneficiary. [1997 c 56 § 4; 1965 ex.s. c 157 §
5-103.]
62A.5-104
62A.5-104 Formal requirements. A letter of credit,
confirmation, advice, transfer, amendment, or cancellation
may be issued in any form that is a record and is authenticated
(1) by a signature or (2) in accordance with the agreement of
the parties or the standard practice referred to in RCW
62A.5-108(5). [1997 c 56 § 5; 1965 ex.s. c 157 § 5-104.]
62A.5-105
62A.5-105 Consideration. Consideration is not
required to issue, amend, transfer, or cancel a letter of credit,
advice, or confirmation. [1997 c 56 § 6; 1965 ex.s. c 157 § 5105.]
62A.5-106
62A.5-106 Issuance, amendment, cancellation, and
duration. (1) A letter of credit is issued and becomes
enforceable according to its terms against the issuer when the
issuer sends or otherwise transmits it to the person requested
to advise or to the beneficiary. A letter of credit is revocable
only if it so provides.
(2) After a letter of credit is issued, rights and obligations
of a beneficiary, applicant, confirmer, and issuer are not
affected by an amendment or cancellation to which that person has not consented except to the extent the letter of credit
provides that it is revocable or that the issuer may amend or
cancel the letter of credit without that consent.
(3) If there is no stated expiration date or other provision
that determines its duration, a letter of credit expires one year
after its stated date of issuance or, if none is stated, after the
date on which it is issued.
(4) A letter of credit that states that it is perpetual expires
five years after its stated date of issuance, or if none is stated,
after the date on which it is issued. [1997 c 56 § 7; 1965 ex.s.
c 157 § 5-106.]
62A.5-107
62A.5-107 Confirmer, nominated person, and
adviser. (1) A confirmer is directly obligated on a letter of
credit and has the rights and obligations of an issuer to the
extent of its confirmation. The confirmer also has rights
against and obligations to the issuer as if the issuer were an
applicant and the confirmer had issued the letter of credit at
the request and for the account of the issuer.
(2) A nominated person who is not a confirmer is not
obligated to honor or otherwise give value for a presentation.
[Title 62A RCW—page 87]
62A.5-108
Title 62A RCW: Uniform Commercial Code
(3) A person requested to advise may decline to act as an
adviser. An adviser that is not a confirmer is not obligated to
honor or give value for a presentation. An adviser undertakes
to the issuer and to the beneficiary accurately to advise the
terms of the letter of credit, confirmation, amendment, or
advice received by that person and undertakes to the beneficiary to check the apparent authenticity of the request to
advise. Even if the advice is inaccurate, the letter of credit,
confirmation, or amendment is enforceable as issued.
(4) A person who notifies a transferee beneficiary of the
terms of a letter of credit, confirmation, amendment, or
advice has the rights and obligations of an adviser under subsection (3) of this section. The terms in the notice to the transferee beneficiary may differ from the terms in any notice to
the transferor beneficiary to the extent permitted by the letter
of credit, confirmation, amendment, or advice received by the
person who so notifies. [1997 c 56 § 8; 1965 ex.s. c 157 § 5107.]
62A.5-108
62A.5-108 Issuer's rights and obligations. (1) Except
as otherwise provided in RCW 62A.5-109, an issuer shall
honor a presentation that, as determined by the standard practice referred to in subsection (5) of this section, appears on its
face strictly to comply with the terms and conditions of the
letter of credit. Except as otherwise provided in RCW
62A.5-113 and unless otherwise agreed with the applicant, an
issuer shall dishonor a presentation that does not appear so to
comply.
(2) An issuer has a reasonable time after presentation,
but not beyond the end of the seventh business day of the
issuer after the day of its receipt of documents:
(a) To honor;
(b) If the letter of credit provides for honor to be completed more than seven business days after presentation, to
accept a draft or incur a deferred obligation; or
(c) To give notice to the presenter of discrepancies in the
presentation.
(3) Except as otherwise provided in subsection (4) of this
section, an issuer is precluded from asserting as a basis for
dishonor any discrepancy if timely notice is not given, or any
discrepancy not stated in the notice if timely notice is given.
(4) Failure to give the notice specified in subsection (2)
of this section or to mention fraud, forgery, or expiration in
the notice does not preclude the issuer from asserting as a
basis for dishonor fraud or forgery as described in RCW
62A.5-109(1) or expiration of the letter of credit before presentation.
(5) An issuer shall observe standard practice of financial
institutions that regularly issue letters of credit. Determination of the issuer's observance of the standard practice is a
matter of interpretation for the court. The court shall offer the
parties a reasonable opportunity to present evidence of the
standard practice.
(6) An issuer is not responsible for:
(a) The performance or nonperformance of the underlying contract, arrangement, or transaction;
(b) An act or omission of others; or
(c) Observance or knowledge of the usage of a particular
trade other than the standard practice referred to in subsection
(5) of this section.
[Title 62A RCW—page 88]
(7) If an undertaking constituting a letter of credit under
RCW 62A.5-102(1)(j) contains nondocumentary conditions,
an issuer shall disregard the nondocumentary conditions and
treat them as if they were not stated.
(8) An issuer that has dishonored a presentation shall
return the documents or hold them at the disposal of, and send
advice to that effect to, the presenter.
(9) An issuer that has honored a presentation as permitted or required by this Article:
(a) Is entitled to be reimbursed by the applicant in immediately available funds not later than the date of its payment
of funds;
(b) Takes the documents free of claims of the beneficiary
or presenter;
(c) Is precluded from asserting a right of recourse on a
draft under RCW 62A.3-414 and 62A.3-415;
(d) Except as otherwise provided in RCW 62A.5-110
and 62A.5-117, is precluded from restitution of money paid
or other value given by mistake to the extent the mistake concerns discrepancies in the documents or tender which are
apparent on the face of the presentation; and
(e) Is discharged to the extent of its performance under
the letter of credit unless the issuer honored a presentation in
which a required signature of a beneficiary was forged.
[1997 c 56 § 9; 1965 ex.s. c 157 § 5-108.]
62A.5-109 Fraud and forgery. (1) If a presentation is
made that appears on its face strictly to comply with the terms
and conditions of the letter of credit, but a required document
is forged or materially fraudulent, or honor of the presentation would facilitate a material fraud by the beneficiary on the
issuer or applicant:
(a) The issuer shall honor the presentation, if honor is
demanded by (i) a nominated person who has given value in
good faith and without notice of forgery or material fraud, (ii)
a confirmer who has honored its confirmation in good faith,
(iii) a holder in due course of a draft drawn under the letter of
credit which was taken after acceptance by the issuer or nominated person, or (iv) an assignee of the issuer's or nominated
person's deferred obligation that was taken for value and
without notice of forgery or material fraud after the obligation was incurred by the issuer or nominated person; and
(b) The issuer, acting in good faith, may honor or dishonor the presentation in any other case.
(2) If an applicant claims that a required document is
forged or materially fraudulent or that honor of the presentation would facilitate a material fraud by the beneficiary on the
issuer or applicant, a court of competent jurisdiction may
temporarily or permanently enjoin the issuer from honoring a
presentation or grant similar relief against the issuer or other
persons only if the court finds that:
(a) The relief is not prohibited under the law applicable
to an accepted draft or deferred obligation incurred by the
issuer;
(b) A beneficiary, issuer, or nominated person who may
be adversely affected is adequately protected against loss that
it may suffer because the relief is granted;
(c) All of the conditions to entitle a person to the relief
under the law of this state have been met; and
(d) On the basis of the information submitted to the
court, the applicant is more likely than not to succeed under
62A.5-109
(2004 Ed.)
Letters of Credit
its claim of forgery or material fraud and the person demanding honor does not qualify for protection under subsection
(1)(a) of this section. [1997 c 56 § 10; 1965 ex.s. c 157 § 5109.]
62A.5-113
(6) Damages that would otherwise be payable by a party
for breach of an obligation under this Article may be liquidated by agreement or undertaking, but only in an amount or
by a formula that is reasonable in light of the harm anticipated. [1997 c 56 § 12; 1965 ex.s. c 157 § 5-111.]
62A.5-110
62A.5-110 Warranties. (1) If its presentation is honored, the beneficiary warrants:
(a) To the issuer, any other person to whom presentation
is made, and the applicant that there is no fraud or forgery of
the kind described in RCW 62A.5-109(1); and
(b) To the applicant that the drawing does not violate any
agreement between the applicant and beneficiary or any other
agreement intended by them to be augmented by the letter of
credit.
(2) The warranties in subsection (1) of this section are in
addition to warranties arising under Articles 3, 4, 7, and 8
because of the presentation or transfer of documents covered
by any of those Articles. [1997 c 56 § 11; 1965 ex.s. c 157 §
5-110.]
62A.5-111
62A.5-111 Remedies. (1) If an issuer wrongfully dishonors or repudiates its obligation to pay money under a letter of credit before presentation, the beneficiary, successor, or
nominated person presenting on its own behalf may recover
from the issuer the amount that is the subject of the dishonor
or repudiation. If the issuer's obligation under the letter of
credit is not for the payment of money, the claimant may
obtain specific performance or, at the claimant's election,
recover an amount equal to the value of performance from the
issuer. In either case, the claimant may also recover incidental but not consequential damages. The claimant is not obligated to take action to avoid damages that might be due from
the issuer under this subsection. If, although not obligated to
do so, the claimant avoids damages, the claimant's recovery
from the issuer must be reduced by the amount of damages
avoided. The issuer has the burden of proving the amount of
damages avoided. In the case of repudiation the claimant
need not present any document.
(2) If an issuer wrongfully dishonors a draft or demand
presented under a letter of credit or honors a draft or demand
in breach of its obligation to the applicant, the applicant may
recover damages resulting from the breach, including incidental but not consequential damages, less any amount saved
as a result of the breach.
(3) If an adviser or nominated person other than a confirmer breaches an obligation under this Article or an issuer
breaches an obligation not covered in subsection (1) or (2) of
this section, a person to whom the obligation is owed may
recover damages resulting from the breach, including incidental but not consequential damages, less any amount saved
as a result of the breach. To the extent of the confirmation, a
confirmer has the liability of an issuer specified in this subsection and subsections (1) and (2) of this section.
(4) An issuer, nominated person, or adviser who is found
liable under subsection (1), (2), or (3) of this section shall pay
interest on the amount owed thereunder from the date of
wrongful dishonor or other appropriate date.
(5) Reasonable attorney's fees and other expenses of litigation must be awarded to the prevailing party in an action in
which a remedy is sought under this Article.
(2004 Ed.)
62A.5-112
62A.5-112 Transfer of letter of credit. (1) Except as
otherwise provided in RCW 62A.5-113, unless a letter of
credit provides that it is transferable, the right of a beneficiary
to draw or otherwise demand performance under a letter of
credit may not be transferred.
(2) Even if a letter of credit provides that it is transferable, the issuer may refuse to recognize or carry out a transfer
if:
(a) The transfer would violate applicable law; or
(b) The transferor or transferee has failed to comply with
any requirement stated in the letter of credit or any other
requirement relating to transfer imposed by the issuer which
is within the standard practice referred to in RCW
62A.5-108(5) or is otherwise reasonable under the circumstances. [1997 c 56 § 13; 1965 ex.s. c 157 § 5-112. Cf. former
RCW sections: (i) RCW 62.01.136; 1955 c 35 § 62.01.136;
prior: 1899 c 149 § 136; RRS § 3526. (ii) RCW 62.01.137;
1955 c 35 § 62.01.137; prior: 1899 c 149 § 137; RRS § 3527.
(iii) RCW 62.01.150; 1955 c 35 § 62.01.150; prior: 1899 c
149 § 150; RRS § 3540.]
62A.5-113
62A.5-113 Transfer by operation of law. (1) A successor of a beneficiary may consent to amendments, sign and
present documents, and receive payment or other items of
value in the name of the beneficiary without disclosing its
status as a successor.
(2) A successor of a beneficiary may consent to amendments, sign and present documents, and receive payment or
other items of value in its own name as the disclosed successor of the beneficiary. Except as otherwise provided in subsection (5) of this section, an issuer shall recognize a disclosed successor of a beneficiary as beneficiary in full substitution for its predecessor upon compliance with the
requirements for recognition by the issuer of a transfer of
drawing rights by operation of law under the standard practice referred to in RCW 62A.5-108(5) or, in the absence of
such a practice, compliance with other reasonable procedures
sufficient to protect the issuer.
(3) An issuer is not obliged to determine whether a purported successor is a successor of a beneficiary or whether
the signature of a purported successor is genuine or authorized.
(4) Honor of a purported successor's apparently complying presentation under subsection (1) or (2) of this section has
the consequences specified in RCW 62A.5-108(9) even if the
purported successor is not the successor of a beneficiary.
Documents signed in the name of the beneficiary or of a disclosed successor by a person who is neither the beneficiary
nor the successor of the beneficiary are forged documents for
the purposes of RCW 62A.5-109.
(5) An issuer whose rights of reimbursement are not covered by subsection (4) of this section or substantially similar
law and any confirmer or nominated person may decline to
recognize a presentation under subsection (2) of this section.
[Title 62A RCW—page 89]
62A.5-114
Title 62A RCW: Uniform Commercial Code
(6) A beneficiary whose name is changed after the issuance of a letter of credit has the same rights and obligations as
a successor of a beneficiary under this section. [1997 c 56 §
14; 1965 ex.s. c 157 § 5-113.]
62A.5-114 Assignment of proceeds. (1) In this section,
"proceeds of a letter of credit" means the cash, check,
accepted draft, or other item of value paid or delivered upon
honor or giving of value by the issuer or any nominated person under the letter of credit. The term does not include a
beneficiary's drawing rights or documents presented by the
beneficiary.
(2) A beneficiary may assign its right to part or all of the
proceeds of a letter of credit. The beneficiary may do so
before presentation as a present assignment of its right to
receive proceeds contingent upon its compliance with the
terms and conditions of the letter of credit.
(3) An issuer or nominated person need not recognize an
assignment of proceeds of a letter of credit until it consents to
the assignment.
(4) An issuer or nominated person has no obligation to
give or withhold its consent to an assignment of proceeds of
a letter of credit, but consent may not be unreasonably withheld if the assignee possesses and exhibits the letter of credit
and presentation of the letter of credit is a condition to honor.
(5) Rights of a transferee beneficiary or nominated person are independent of the beneficiary's assignment of the
proceeds of a letter of credit and are superior to the assignee's
right to the proceeds.
(6) Neither the rights recognized by this section between
an assignee and an issuer, transferee beneficiary, or nominated person nor the issuer's or nominated person's payment
of proceeds to an assignee or a third person affect the rights
between the assignee and any person other than the issuer,
transferee beneficiary, or nominated person. The mode of
creating and perfecting a security interest in or granting an
assignment of a beneficiary's rights to proceeds is governed
by *Article 9 or other law. Against persons other than the
issuer, transferee beneficiary, or nominated person, the rights
and obligations arising upon the creation of a security interest
or other assignment of a beneficiary's right to proceeds and its
perfection are governed by *Article 9 or other law. [1997 c
56 § 15; 1995 c 48 § 57; 1986 c 35 § 54; 1965 ex.s. c 157 § 5114.]
62A.5-114
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001. For later enactment, see Article
62A.9A RCW.
Savings—1995 c 48: See RCW 62A.8-601.
Effective date—1995 c 48: See RCW 62A.11-113.
62A.5-115 Statute of limitations. An action to enforce
a right or obligation arising under this Article must be commenced within one year after the expiration date of the relevant letter of credit or one year after the cause of action
accrues, whichever occurs later. A cause of action accrues
when the breach occurs, regardless of the aggrieved party's
lack of knowledge of the breach. [1997 c 56 § 16; 1965 ex.s.
c 157 § 5-115.]
62A.5-115
62A.5-116 Choice of law and forum. (1) The liability
of an issuer, nominated person, or adviser for action or omis62A.5-116
[Title 62A RCW—page 90]
sion is governed by the law of the jurisdiction chosen by an
agreement in the form of a record signed or otherwise authenticated by the affected parties in the manner provided in
RCW 62A.5-104 or by a provision in the person's letter of
credit, confirmation, or other undertaking. The jurisdiction
whose law is chosen need not bear any relation to the transaction.
(2) Unless subsection (1) of this section applies, the liability of an issuer, nominated person, or adviser for action or
omission is governed by the law of the jurisdiction in which
the person is located. The person is considered to be located
at the address indicated in the person's undertaking. If more
than one address is indicated, the person is considered to be
located at the address from which the person's undertaking
was issued. For the purpose of jurisdiction, choice of law, and
recognition of interbranch letters of credit, but not enforcement of a judgment, all branches of a bank are considered
separate juridical entities and a bank is considered to be
located at the place where its relevant branch is considered to
be located under this subsection.
(3) Except as otherwise provided in this subsection, the
liability of an issuer, nominated person, or adviser is governed by any rules of custom or practice, such as the Uniform
Customs and Practice for Documentary Credits, to which the
letter of credit, confirmation, or other undertaking is
expressly made subject. If (a) this Article would govern the
liability of an issuer, nominated person, or adviser under subsection (1) or (2) of this section, (b) the relevant undertaking
incorporates rules of custom or practice, and (c) there is conflict between this Article and those rules as applied to that
undertaking, those rules govern except to the extent of any
conflict with the nonvariable provisions specified in RCW
62A.5-103(3).
(4) If there is conflict between this Article and Article 3,
4, 4A, or *9, this Article governs.
(5) The forum for settling disputes arising out of an
undertaking within this Article may be chosen in the manner
and with the binding effect that governing law may be chosen
in accordance with subsection (1) of this section. [1997 c 56
§ 17; 1981 c 41 § 5; 1965 ex.s. c 157 § 5-116. Subd. (2)(b) cf.
former RCW 63.16.020; 1947 c 8 § 2; Rem. Supp. 1947 §
2721-2.]
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001. For later enactment, see Article
62A.9A RCW.
Effective date—1981 c 41: See RCW 62A.11-101.
62A.5-117
62A.5-117 Subrogation of issuer, applicant, and
nominated person. (1) An issuer that honors a beneficiary's
presentation is subrogated to the rights of the beneficiary to
the same extent as if the issuer were a secondary obligor of
the underlying obligation owed to the beneficiary and of the
applicant to the same extent as if the issuer were the secondary obligor of the underlying obligation owed to the applicant.
(2) An applicant that reimburses an issuer is subrogated
to the rights of the issuer against any beneficiary, presenter,
or nominated person to the same extent as if the applicant
were the secondary obligor of the obligations owed to the
issuer and has the rights of subrogation of the issuer to the
(2004 Ed.)
Warehouse Receipts, Bills of Lading and Other Documents of Title
rights of the beneficiary stated in subsection (1) of this section.
(3) A nominated person who pays or gives value against
a draft or demand presented under a letter of credit is subrogated to the rights of:
(a) The issuer against the applicant to the same extent as
if the nominated person were a secondary obligor of the obligation owed to the issuer by the applicant;
(b) The beneficiary to the same extent as if the nominated person were a secondary obligor of the underlying obligation owed to the beneficiary; and
(c) The applicant to the same extent as if the nominated
person were a secondary obligor of the underlying obligation
owed to the applicant.
(4) Notwithstanding any agreement or term to the contrary, the rights of subrogation stated in subsections (1) and
(2) of this section do not arise until the issuer honors the letter
of credit or otherwise pays and the rights in subsection (3) of
this section do not arise until the nominated person pays or
otherwise gives value. Until then, the issuer, nominated person, and the applicant do not derive under this section present
or prospective rights forming the basis of a claim, defense, or
excuse. [1997 c 56 § 18; 1965 ex.s. c 157 § 5-117.]
62A.5-118
62A.5-118 Security interest of issuer or nominated
person. (a) An issuer or nominated person has a security
interest in a document presented under a letter of credit to the
extent that the issuer or nominated person honors or gives
value for the presentation.
(b) So long as and to the extent that an issuer or nominated person has not been reimbursed or has not otherwise
recovered the value given with respect to a security interest in
a document under subsection (a) of this section, the security
interest continues and is subject to Article 9, but:
(1) A security agreement is not necessary to make the
security interest enforceable under RCW 62A.9A-203(b)(3);
(2) If the document is presented in a medium other than
a written or other tangible medium, the security interest is
perfected; and
(3) If the document is presented in a written or other tangible medium and is not a certificated security, chattel paper,
a document of title, an instrument, or a letter of credit, the
security interest is perfected and has priority over a conflicting security interest in the document so long as the debtor
does not have possession of the document. [2000 c 250 § 2.]
Effective date—2000 c 250: See RCW 62A.9A-701.
Article 7
WAREHOUSE RECEIPTS, BILLS OF LADING AND
OTHER DOCUMENTS OF TITLE
62A.7-102
PART 2
WAREHOUSE RECEIPTS: SPECIAL PROVISIONS
62A.7-201
62A.7-202
62A.7-203
62A.7-204
62A.7-205
62A.7-206
62A.7-207
62A.7-208
62A.7-209
62A.7-210
Who may issue a warehouse receipt; storage under government bond.
Form of warehouse receipt; essential terms; optional terms.
Liability for non-receipt or misdescription.
Duty of care; contractual limitation of warehouseman's liability.
Title under warehouse receipt defeated in certain cases.
Termination of storage at warehouseman's option.
Goods must be kept separate; fungible goods.
Altered warehouse receipts.
Lien of warehouseman.
Enforcement of warehouseman's lien.
PART 3
BILLS OF LADING: SPECIAL PROVISIONS
62A.7-301
62A.7-302
62A.7-303
62A.7-304
62A.7-305
62A.7-306
62A.7-307
62A.7-308
62A.7-309
Liability for non-receipt or misdescription; "said to contain";
"shipper's load and count"; improper handling.
Through bills of lading and similar documents.
Diversion; reconsignment; change of instructions.
Bills of lading in a set.
Destination bills.
Altered bills of lading.
Lien of carrier.
Enforcement of carrier's lien.
Duty of care; contractual limitation of carrier's liability.
PART 4
WAREHOUSE RECEIPTS AND BILLS OF LADING:
GENERAL OBLIGATIONS
62A.7-401
62A.7-402
62A.7-403
62A.7-404
Irregularities in issue of receipt or bill or conduct of issuer.
Duplicate receipt or bill; overissue.
Obligation of warehouseman or carrier to deliver; excuse.
No liability for good faith delivery pursuant to receipt or bill.
PART 5
WAREHOUSE RECEIPTS AND BILLS OF LADING:
NEGOTIATION AND TRANSFER
62A.7-501
62A.7-502
62A.7-503
62A.7-504
62A.7-505
62A.7-506
62A.7-507
62A.7-508
62A.7-509
Form of negotiation and requirements of "due negotiation".
Rights acquired by due negotiation.
Document of title to goods defeated in certain cases.
Rights acquired in the absence of due negotiation; effect of
diversion; seller's stoppage of delivery.
Indorser not a guarantor for other parties.
Delivery without indorsement: Right to compel indorsement.
Warranties on negotiation or transfer of receipt or bill.
Warranties of collecting bank as to documents.
Receipt or bill: When adequate compliance with commercial
contract.
PART 6
WAREHOUSE RECEIPTS AND BILLS OF LADING:
MISCELLANEOUS PROVISIONS
62A.7-601
62A.7-602
62A.7-603
Lost and missing documents.
Attachment of goods covered by a negotiable document.
Conflicting claims; interpleader.
62A.7-101
62A.7-101 Short title. This Article shall be known and
may be cited as Uniform Commercial Code—Documents of
Title. [1965 ex.s. c 157 § 7-101.]
Article 7
Sections
PART 1
GENERAL
62A.7-101
62A.7-102
62A.7-103
62A.7-104
62A.7-105
(2004 Ed.)
Short title.
Definitions and index of definitions.
Relation of Article to treaty, statute, tariff, classification or
regulation.
Negotiable and non-negotiable warehouse receipt, bill of lading or other document of title.
Construction against negative implication.
62A.7-102
62A.7-102 Definitions and index of definitions. (1) In
this Article, unless the context otherwise requires:
(a) "Bailee" means the person who by a warehouse
receipt, bill of lading or other document of title acknowledges
possession of goods and contracts to deliver them.
(b) "Consignee" means the person named in a bill to
whom or to whose order the bill promises delivery.
(c) "Consignor" means the person named in a bill as the
person from whom the goods have been received for shipment.
(d) "Delivery order" means a written order to deliver
goods directed to a warehouseman, carrier or other person
[Title 62A RCW—page 91]
62A.7-103
Title 62A RCW: Uniform Commercial Code
who in the ordinary course of business issues warehouse
receipts or bills of lading.
(e) "Document" means document of title as defined in
the general definitions in Article 1 (RCW 62A.1-201).
(f) "Goods" means all things which are treated as movable for the purposes of a contract of storage or transportation.
(g) "Issuer" means a bailee who issues a document
except that in relation to an unaccepted delivery order it
means the person who orders the possessor of goods to
deliver. Issuer includes any person for whom an agent or
employee purports to act in issuing a document if the agent or
employee has real or apparent authority to issue documents,
notwithstanding that the issuer received no goods or that the
goods were misdescribed or that in any other respect the
agent or employee violated his instructions.
(h) "Warehouseman" is a person engaged in the business
of storing goods for hire.
(2) Other definitions applying to this Article or to specified Parts thereof, and the sections in which they appear are:
"Duly negotiate". RCW 62A.7-501.
"Person entitled under the document". RCW 62A.7403(4).
(3) Definitions in other Articles applying to this Article
and the sections in which they appear are:
"Contract for sale". RCW 62A.2-106.
"Overseas". RCW 62A.2-323.
"Receipt" of goods. RCW 62A.2-103.
(4) In addition Article 1 contains general definitions and
principles of construction and interpretation applicable
throughout this Article. [1965 ex.s. c 157 § 7-102. Cf. former
RCW sections: (i) RCW 22.04.585(1); 1913 c 99 § 58; RRS
§ 3644; formerly RCW 22.04.010. (ii) RCW 63.04.755(1);
1925 ex.s. c 142 § 76; RRS § 5836-76; formerly RCW
63.04.010. (iii) RCW 81.32.011; 1961 c 14 § 81.32.011;
prior: 1915 c 159 § 1; RRS § 3647; formerly RCW
81.32.020. (iv) RCW 81.32.531(1); 1961 c 14 § 81.32.531;
prior: 1915 c 159 § 53; RRS § 3699; formerly RCW
81.32.010, part.]
62A.7-103
62A.7-103 Relation of Article to treaty, statute, tariff,
classification or regulation. To the extent that any treaty or
statute of the United States, regulatory statute of this state or
tariff, classification or regulation filed or issued pursuant
thereto is applicable, the provisions of this Article are subject
thereto. [1965 ex.s. c 157 § 7-103.]
62A.7-104
62A.7-104 Negotiable and non-negotiable warehouse
receipt, bill of lading or other document of title. (1) A
warehouse receipt, bill of lading or other document of title is
negotiable
(a) if by its terms the goods are to be delivered to bearer
or to the order of a named person; or
(b) where recognized in overseas trade, if it runs to a
named person or assigns.
(2) Any other document is non-negotiable. A bill of lading in which it is stated that the goods are consigned to a
named person is not made negotiable by a provision that the
goods are to be delivered only against a written order signed
by the same or another named person. [1965 ex.s. c 157 § 7[Title 62A RCW—page 92]
104. Cf. former RCW sections: (i) RCW 22.04.030,
22.04.050, and 22.04.060; 1913 c 99 §§ 2, 4, and 5; RRS §§
3588, 3590, and 3591; prior: 1891 c 134 §§ 5 and 8. (ii)
RCW 22.04.040 and 22.04.080; 1913 c 99 §§ 3, 7; RRS §§
3589, 3593. (iii) RCW 63.04.280 and 63.04.310; 1925 ex.s. c
142 §§ 27 and 30; RRS §§ 5836-27 and 5836-30. (iv) RCW
63.04.755(1); 1925 ex.s. c 142 § 76; RRS § 5836-76; formerly RCW 63.04.010. (v) RCW 81.32.021 through
81.32.051, and 81.32.081; 1961 c 14 §§ 81.32.021 through
81.32.051, and 81.32.081; prior: 1915 c 159 §§ 2 through 5,
and 8; RRS §§ 3648 through 3651, and 3654; formerly RCW
81.32.030 through 81.32.060, and 81.32.090. (vi) RCW
81.32.531; 1961 c 14 § 81.32.531; prior: 1915 c 159 § 53;
RRS § 3699; formerly RCW 81.32.010, part.]
62A.7-105
62A.7-105 Construction against negative implication. The omission from either Part 2 or Part 3 of this Article
of a provision corresponding to a provision made in the other
Part does not imply that a corresponding rule of law is not
applicable. [1965 ex.s. c 157 § 7-105.]
62A.7-201
62A.7-201 Who may issue a warehouse receipt; storage under government bond. (1) A warehouse receipt may
be issued by any warehouseman.
(2) Where goods including distilled spirits and agricultural commodities are stored under a statute requiring a bond
against withdrawal or a license for the issuance of receipts in
the nature of warehouse receipts, a receipt issued for the
goods has like effect as a warehouse receipt even though
issued by a person who is the owner of the goods and is not a
warehouseman. [1965 ex.s. c 157 § 7-201. Cf. former RCW
22.04.020; 1913 c 99 § 1; RRS § 3587; prior: 1891 c 134 §
1.]
62A.7-202
62A.7-202 Form of warehouse receipt; essential
terms; optional terms. (1) A warehouse receipt need not be
in any particular form.
(2) Unless a warehouse receipt embodies within its written, printed, or electronic terms each of the following, the
warehouseman is liable for damages caused by the omission
to a person injured thereby:
(a) the location of the warehouse where the goods are
stored;
(b) the date of issue of the receipt;
(c) the consecutive number of the receipt;
(d) a statement whether the goods received will be delivered to the bearer, to a specified person, or to a specified person or his order;
(e) the rate of storage and handling charges, except that
where goods are stored under a field warehousing arrangement a statement of that fact is sufficient on a non-negotiable
receipt;
(f) a description of the goods or of the packages containing them;
(g) the signature of the warehouseman, which may be
made by his authorized agent;
(h) if the receipt is issued for goods of which the warehouseman is owner, either solely or jointly or in common
with others, the fact of such ownership; and
(2004 Ed.)
Warehouse Receipts, Bills of Lading and Other Documents of Title
(i) a statement of the amount of advances made and of
liabilities incurred for which the warehouseman claims a lien
or security interest (RCW 62A.7-209). If the precise amount
of such advances made or of such liabilities incurred is, at the
time of the issue of the receipt, unknown to the warehouseman or to his agent who issues it, a statement of the fact that
advances have been made or liabilities incurred and the purpose thereof is sufficient.
(3) A warehouseman may insert in his receipt any other
terms which are not contrary to the provisions of this Title
and do not impair his obligation of delivery (RCW 62A.7403) or his duty of care (RCW 62A.7-204). Any contrary provisions shall be ineffective. [2000 c 58 § 1; 1965 ex.s. c 157
§ 7-202. Cf. former RCW sections: (i) RCW 22.04.030; 1913
c 99 § 2; RRS § 3588; prior: 1891 c 134 § 8. (ii) RCW
22.04.040; 1913 c 99 § 3; RRS § 3589.]
62A.7-203
62A.7-203 Liability for non-receipt or misdescription. A party to or purchaser for value in good faith of a document of title other than a bill of lading relying in either case
upon the description therein of the goods may recover from
the issuer damages caused by the non-receipt or misdescription of the goods, except to the extent that the document conspicuously indicates that the issuer does not know whether
any part or all of the goods in fact were received or conform
to the description, as where the description is in terms of
marks or labels or kind, quantity or condition, or the receipt
or description is qualified by "contents, condition and quality
unknown", "said to contain" or the like, if such indication be
true, or the party or purchaser otherwise has notice. [1965
ex.s. c 157 § 7-203. Cf. former RCW 22.04.210; 1913 c 99 §
20; RRS § 3606.]
62A.7-204
62A.7-204 Duty of care; contractual limitation of
warehouseman's liability. (1) A warehouseman is liable for
damages for loss of or injury to the goods caused by his failure to exercise such care in regard to them as a reasonably
careful man would exercise under like circumstances but
unless otherwise agreed he is not liable for damages which
could not have been avoided by the exercise of such care.
(2) Damages may be limited by a term in the warehouse
receipt or storage agreement limiting the amount of liability
in case of loss or damage, and setting forth a specific liability
per article or item, or value per unit of weight, beyond which
the warehouseman shall not be liable; provided, however,
that such liability may on written request of the bailor at the
time of signing such storage agreement or within a reasonable time after receipt of the warehouse receipt be increased
on part or all of the goods thereunder, in which event
increased rates may be charged based on such increased valuation, but that no such increase shall be permitted contrary
to a lawful limitation of liability contained in the warehouseman's tariff, if any. No such limitation is effective with
respect to the warehouseman's liability for conversion to his
own use.
(3) Reasonable provisions as to the time and manner of
presenting claims and instituting actions based on the bailment may be included in the warehouse receipt or tariff.
(4) This section does not impair or repeal the duties of
care or liabilities or penalties for breach thereof as provided
(2004 Ed.)
62A.7-207
in chapters 22.09 and 22.32 RCW. [1981 c 13 § 1; 1965 ex.s.
c 157 § 7-204. Cf. former RCW sections: (i) RCW
22.04.040; 1913 c 99 § 3; RRS § 3589. (ii) RCW 22.04.220;
1913 c 99 § 21; RRS § 3607.]
62A.7-205
62A.7-205 Title under warehouse receipt defeated in
certain cases. A buyer in the ordinary course of business of
fungible goods sold and delivered by a warehouseman who is
also in the business of buying and selling such goods takes
free of any claim under a warehouse receipt even though it
has been duly negotiated. [1965 ex.s. c 157 § 7-205.]
62A.7-206
62A.7-206 Termination of storage at warehouseman's option. (1) A warehouseman may on notifying the
person on whose account the goods are held and any other
person known to claim an interest in the goods require payment of any charges and removal of the goods from the warehouse at the termination of the period of storage fixed by the
document, or, if no period is fixed, within a stated period not
less than thirty days after the notification. If the goods are not
removed before the date specified in the notification, the
warehouseman may sell them in accordance with the provisions of the section on enforcement of a warehouseman's lien
(RCW 62A.7-210).
(2) If a warehouseman in good faith believes that the
goods are about to deteriorate or decline in value to less than
the amount of his lien within the time prescribed in subsection (1) for notification, advertisement and sale, the warehouseman may specify in the notification any reasonable
shorter time for removal of the goods and in case the goods
are not removed, may sell them at public sale held not less
than one week after a single advertisement or posting.
(3) If as a result of a quality or condition of the goods of
which the warehouseman had no notice at the time of deposit
the goods are a hazard to other property or to the warehouse
or to persons, the warehouseman may sell the goods at public
or private sale without advertisement on reasonable notification to all persons known to claim an interest in the goods. If
the warehouseman after a reasonable effort is unable to sell
the goods he may dispose of them in any lawful manner and
shall incur no liability by reason of such disposition.
(4) The warehouseman must deliver the goods to any
person entitled to them under this Article upon due demand
made at any time prior to sale or other disposition under this
section.
(5) The warehouseman may satisfy his lien from the proceeds of any sale or disposition under this section but must
hold the balance for delivery on the demand of any person to
whom he would have been bound to deliver the goods. [1965
ex.s. c 157 § 7-206. Cf. former RCW 22.04.350; 1913 c 99 §
34; RRS § 3620.]
62A.7-207
62A.7-207 Goods must be kept separate; fungible
goods. (1) Unless the warehouse receipt otherwise provides,
a warehouseman must keep separate the goods covered by
each receipt so as to permit at all times identification and
delivery of those goods except that different lots of fungible
goods may be commingled.
(2) Fungible goods so commingled are owned in common by the persons entitled thereto and the warehouseman is
[Title 62A RCW—page 93]
62A.7-208
Title 62A RCW: Uniform Commercial Code
severally liable to each owner for that owner's share. Where
because of over-issue a mass of fungible goods is insufficient
to meet all the receipts which the warehouseman has issued
against it, the persons entitled include all holders to whom
overissued receipts have been duly negotiated. [1965 ex.s. c
157 § 7-207. Cf. former RCW sections: (i) RCW 22.04.230;
1913 c 99 § 22; RRS § 3608; prior: 1891 c 134 § 3. (ii) RCW
22.04.240; 1913 c 99 § 23; RRS § 3609.]
62A.7-208
62A.7-208 Altered warehouse receipts. Where a
blank in a negotiable warehouse receipt has been filled in
without authority, a purchaser for value and without notice of
the want of authority may treat the insertion as authorized.
Any other unauthorized alteration leaves any receipt enforceable against the issuer according to its original tenor. [1965
ex.s. c 157 § 7-208. Cf. former RCW 22.04.140; 1913 c 99 §
13; RRS § 3599.]
62A.7-209
62A.7-209 Lien of warehouseman. (1) A warehouseman has a lien against the bailor on the goods covered by a
warehouse receipt or on the proceeds thereof in his possession for charges for storage or transportation (including
demurrage and terminal charges), insurance, labor, or
charges present or future in relation to the goods, and for
expenses necessary for preservation of the goods or reasonably incurred in their sale pursuant to law. If the person on
whose account the goods are held is liable for like charges or
expenses in relation to other goods whenever deposited and it
is stated in the receipt that a lien is claimed for charges and
expenses in relation to other goods, the warehouseman also
has a lien against him for such charges and expenses whether
or not the other goods have been delivered by the warehouseman. But against a person to whom a negotiable warehouse
receipt is duly negotiated a warehouseman's lien is limited to
charges in an amount or at a rate specified on the receipt or if
no charges are so specified then to a reasonable charge for
storage of the goods covered by the receipt subsequent to the
date of the receipt. A warehouseman's lien as provided in this
chapter takes priority over all other liens and perfected or
unperfected security interests.
(2) The warehouseman may also reserve a security interest against the bailor for a maximum amount specified on the
receipt for charges other than those specified in subsection
(1), such as for money advanced and interest. Such a security
interest is governed by the Article on Secured Transactions
(*Article 9).
(3) A warehouseman's lien for charges and expenses
under subsection (1) or a security interest under subsection
(2) is also effective against any person who so entrusted the
bailor with possession of the goods that a pledge of them by
him to a good faith purchaser for value would have been valid
but is not effective against a person as to whom the document
confers no right in the goods covered by it under RCW
62A.7-503.
(4) A warehouseman loses his lien on any goods which
he voluntarily delivers or which he unjustifiably refuses to
deliver. [1987 c 395 § 1; 1965 ex.s. c 157 § 7-209. Cf. former
RCW sections: RCW 22.04.280 through 22.04.330; 1913 c
99 §§ 27 through 32; RRS §§ 3613 through 3618.]
[Title 62A RCW—page 94]
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001. For later enactment, see Article
62A.9A RCW.
62A.7-210
62A.7-210 Enforcement of warehouseman's lien. (1)
Except as provided in subsection (2), a warehouseman's lien
may be enforced by public or private sale of the goods in bloc
or in parcels, at any time or place and on any terms which are
commercially reasonable, after notifying all persons known
to claim an interest in the goods. Such notification must
include a statement of the amount due, the nature of the proposed sale and the time and place of any public sale. The fact
that a better price could have been obtained by a sale at a different time or in a different method from that selected by the
warehouseman is not of itself sufficient to establish that the
sale was not made in a commercially reasonable manner. If
the warehouseman either sells the goods in the usual manner
in any recognized market therefor, or if he sells at the price
current in such market at the time of his sale, or if he has otherwise sold in conformity with commercially reasonable
practices among dealers in the type of goods sold, he has sold
in a commercially reasonable manner. A sale of more goods
than apparently necessary to be offered to insure satisfaction
of the obligation is not commercially reasonable except in
cases covered by the preceding sentence.
(2) A warehouseman's lien on goods other than goods
stored by a merchant in the course of his business may be
enforced only as follows:
(a) All persons known to claim an interest in the goods
must be notified.
(b) The notification must be delivered in person or sent
by registered or certified letter to the last known address of
any person to be notified.
(c) The notification must include an itemized statement
of the claim, a description of the goods subject to the lien, a
demand for payment within a specified time not less than ten
days after receipt of the notification, and a conspicuous statement that unless the claim is paid within that time the goods
will be advertised for sale and sold by auction at a specified
time and place.
(d) The sale must conform to the terms of the notification.
(e) The sale must be held at the nearest suitable place to
that where the goods are held or stored.
(f) After the expiration of the time given in the notification, an advertisement of the sale must be published once a
week for two weeks consecutively in a newspaper of general
circulation where the sale is to be held. The advertisement
must include a description of the goods, the name of the person on whose account they are being held, and the time and
place of the sale. The sale must take place at least fifteen days
after the first publication. If there is no newspaper of general
circulation where the sale is to be held, the advertisement
must be posted at least ten days before the sale in not less than
six conspicuous places in the neighborhood of the proposed
sale.
(3) Before any sale pursuant to this section any person
claiming a right in the goods may pay the amount necessary
to satisfy the lien and the reasonable expenses incurred under
this section. In that event the goods must not be sold, but must
(2004 Ed.)
Warehouse Receipts, Bills of Lading and Other Documents of Title
be retained by the warehouseman subject to the terms of the
receipt and this Article.
(4) The warehouseman may buy at any public sale pursuant to this section.
(5) A purchaser in good faith of goods sold to enforce a
warehouseman's lien takes the goods free of any rights of persons against whom the lien was valid, despite noncompliance
by the warehouseman with the requirements of this section.
(6) The warehouseman may satisfy his lien from the proceeds of any sale pursuant to this section but must hold the
balance, if any, for delivery on demand to any person to
whom he would have been bound to deliver the goods.
(7) The rights provided by this section shall be in addition to all other rights allowed by law to a creditor against his
debtor.
(8) Where a lien is on goods stored by a merchant in the
course of his business the lien may be enforced in accordance
with either subsection (1) or (2).
(9) The warehouseman is liable for damages caused by
failure to comply with the requirements for sale under this
section and in case of willful violation is liable for conversion. [1965 ex.s. c 157 § 7-210. Cf. former RCW sections:
RCW 22.04.340, 22.04.360, and 22.04.370; 1913 c 99 §§ 33,
35, and 36; RRS §§ 3619, 3621, and 3622.]
62A.7-301
62A.7-301 Liability for non-receipt or misdescription; "said to contain"; "shipper's load and count";
improper handling. (1) A consignee of a non-negotiable
bill who has given value in good faith or a holder to whom a
negotiable bill has been duly negotiated relying in either case
upon the description therein of the goods, or upon the date
therein shown, may recover from the issuer damages caused
by the misdating of the bill or the nonreceipt or misdescription of the goods, except to the extent that the document indicates that the issuer does not know whether any part or all of
the goods in fact were received or conform to the description,
as where the description is in terms of marks or labels or kind,
quantity, or condition or the receipt or description is qualified
by "contents or condition of contents of packages unknown",
"said to contain", "shipper's weight, load and count" or the
like, if such indication be true.
(2) When goods are loaded by an issuer who is a common carrier, the issuer must count the packages of goods if
package freight and ascertain the kind and quantity if bulk
freight. In such cases "shipper's weight, load and count" or
other words indicating that the description was made by the
shipper are ineffective except as to freight concealed by packages.
(3) When bulk freight is loaded by a shipper who makes
available to the issuer adequate facilities for weighing such
freight, an issuer who is a common carrier must ascertain the
kind and quantity within a reasonable time after receiving the
written request of the shipper to do so. In such cases "shipper's weight" or other words of like purport are ineffective.
(4) The issuer may by inserting in the bill the words
"shipper's weight, load and count" or other words of like purport indicate that the goods were loaded by the shipper; and if
such statement be true the issuer shall not be liable for damages caused by the improper loading. But their omission does
not imply liability for such damages.
(2004 Ed.)
62A.7-303
(5) The shipper shall be deemed to have guaranteed to
the issuer the accuracy at the time of shipment of the description, marks, labels, number, kind, quantity, condition and
weight, as furnished by him; and the shipper shall indemnify
the issuer against damage caused by inaccuracies in such particulars. The right of the issuer to such indemnity shall in no
way limit his responsibility and liability under the contract of
carriage to any person other than the shipper. [1965 ex.s. c
157 § 7-301. Cf. former RCW 81.32.231; 1961 c 14 §
81.32.231; prior: 1915 c 159 § 23; RRS § 3669; formerly
RCW 81.32.240.]
62A.7-302
62A.7-302 Through bills of lading and similar documents. (1) The issuer of a through bill of lading or other document embodying an undertaking to be performed in part by
persons acting as its agents or by connecting carriers is liable
to anyone entitled to recover on the document for any breach
by such other persons or by a connecting carrier of its obligation under the document but to the extent that the bill covers
an undertaking to be performed overseas or in territory not
contiguous to the continental United States or an undertaking
including matters other than transportation this liability may
be varied by agreement of the parties.
(2) Where goods covered by a through bill of lading or
other document embodying an undertaking to be performed
in part by persons other than the issuer are received by any
such person, he is subject with respect to his own performance while the goods are in his possession to the obligation
of the issuer. His obligation is discharged by delivery of the
goods to another such person pursuant to the document, and
does not include liability for breach by any other such persons or by the issuer.
(3) The issuer of such through bill of lading or other document shall be entitled to recover from the connecting carrier
or such other person in possession of the goods when the
breach of the obligation under the document occurred, the
amount it may be required to pay to anyone entitled to
recover on the document therefor, as may be evidenced by
any receipt, judgment, or transcript thereof, and the amount
of any expense reasonably incurred by it in defending any
action brought by anyone entitled to recover on the document
therefor. [1965 ex.s. c 157 § 7-302.]
62A.7-303
62A.7-303 Diversion; reconsignment; change of
instructions. (1) Unless the bill of lading otherwise provides, the carrier may deliver the goods to a person or destination other than that stated in the bill or may otherwise dispose of the goods on instructions from
(a) the holder of a negotiable bill; or
(b) the consignor on a non-negotiable bill notwithstanding contrary instructions from the consignee; or
(c) the consignee on a non-negotiable bill in the absence
of contrary instructions from the consignor, if the goods have
arrived at the billed destination or if the consignee is in possession of the bill; or
(d) the consignee on a non-negotiable bill if he is entitled
as against the consignor to dispose of them.
(2) Unless such instructions are noted on a negotiable
bill of lading, a person to whom the bill is duly negotiated can
[Title 62A RCW—page 95]
62A.7-304
Title 62A RCW: Uniform Commercial Code
hold the bailee according to the original terms. [1965 ex.s. c
157 § 7-303.]
62A.7-304
62A.7-304 Bills of lading in a set. (1) Except where
customary in overseas transportation, a bill of lading must not
be issued in a set of parts. The issuer is liable for damages
caused by violation of this subsection.
(2) Where a bill of lading is lawfully drawn in a set of
parts, each of which is numbered and expressed to be valid
only if the goods have not been delivered against any other
part, the whole of the parts constitute one bill.
(3) Where a bill of lading is lawfully issued in a set of
parts and different parts are negotiated to different persons,
the title of the holder to whom the first due negotiation is
made prevails as to both the document and the goods even
though any later holder may have received the goods from the
carrier in good faith and discharged the carrier's obligation by
surrender of his part.
(4) Any person who negotiates or transfers a single part
of a bill of lading drawn in a set is liable to holders of that part
as if it were the whole set.
(5) The bailee is obliged to deliver in accordance with
Part 4 of this Article against the first presented part of a bill
of lading lawfully drawn in a set. Such delivery discharges
the bailee's obligation on the whole bill. [1965 ex.s. c 157 §
7-304. Cf. former RCW 81.32.061; 1961 c 14 § 81.32.061;
prior: 1915 c 159 § 6; RRS § 3652; formerly RCW
81.32.070.]
62A.7-305
62A.7-305 Destination bills. (1) Instead of issuing a
bill of lading to the consignor at the place of shipment a carrier may at the request of the consignor procure the bill to be
issued at destination or at any other place designated in the
request.
(2) Upon request of anyone entitled as against the carrier
to control the goods while in transit and on surrender of any
outstanding bill of lading or other receipt covering such
goods, the issuer may procure a substitute bill to be issued at
any place designated in the request. [1965 ex.s. c 157 § 7305.]
62A.7-306
62A.7-306 Altered bills of lading. An unauthorized
alteration or filling in of a blank in a bill of lading leaves the
bill enforceable according to its original tenor. [1965 ex.s. c
157 § 7-306. Cf. former RCW 81.32.161; 1961 c 14 §
81.32.161; prior: 1915 c 159 § 16; RRS § 3662; formerly
RCW 81.32.170.]
62A.7-307
62A.7-307 Lien of carrier. (1) A carrier has a lien on
the goods covered by a bill of lading for charges subsequent
to the date of its receipt of the goods for storage or transportation (including demurrage and terminal charges) and for
expenses necessary for preservation of the goods incident to
their transportation or reasonably incurred in their sale pursuant to law. But against a purchaser for value of a negotiable
bill of lading a carrier's lien is limited to charges stated in the
bill or the applicable tariffs, or if no charges are stated then to
a reasonable charge.
(2) A lien for charges and expenses under subsection (1)
on goods which the carrier was required by law to receive for
[Title 62A RCW—page 96]
transportation is effective against the consignor or any person
entitled to the goods unless the carrier had notice that the consignor lacked authority to subject the goods to such charges
and expenses. Any other lien under subsection (1) is effective
against the consignor and any person who permitted the
bailor to have control or possession of the goods unless the
carrier had notice that the bailor lacked such authority.
(3) A carrier loses his lien on any goods which he voluntarily delivers or which he unjustifiably refuses to deliver.
[1965 ex.s. c 157 § 7-307. Cf. former RCW sections: RCW
22.04.280 through 22.04.330; 1913 c 99 §§ 27 through 32;
RRS §§ 3613 through 3618.]
62A.7-308
62A.7-308 Enforcement of carrier's lien. (1) A carrier's lien may be enforced by public or private sale of the
goods, in bloc or in parcels, at any time or place and on any
terms which are commercially reasonable, after notifying all
persons known to claim an interest in the goods. Such notification must include a statement of the amount due, the nature
of the proposed sale and the time and place of any public sale.
The fact that a better price could have been obtained by a sale
at a different time or in a different method from that selected
by the carrier is not of itself sufficient to establish that the sale
was not made in a commercially reasonable manner. If the
carrier either sells the goods in the usual manner in any recognized market therefor or if he sells at the price current in
such market at the time of his sale or if he has otherwise sold
in conformity with commercially reasonable practices among
dealers in the type of goods sold he has sold in a commercially reasonable manner. A sale of more goods than apparently necessary to be offered to ensure satisfaction of the
obligation is not commercially reasonable except in cases
covered by the preceding sentence.
(2) Before any sale pursuant to this section any person
claiming a right in the goods may pay the amount necessary
to satisfy the lien and the reasonable expenses incurred under
this section. In that event the goods must not be sold, but must
be retained by the carrier subject to the terms of the bill and
this Article.
(3) The carrier may buy at any public sale pursuant to
this section.
(4) A purchaser in good faith of goods sold to enforce a
carrier's lien takes the goods free of any rights of persons
against whom the lien was valid, despite noncompliance by
the carrier with the requirements of this section.
(5) The carrier may satisfy his lien from the proceeds of
any sale pursuant to this section but must hold the balance, if
any, for delivery on demand to any person to whom he would
have been bound to deliver the goods.
(6) The rights provided by this section shall be in addition to all other rights allowed by law to a creditor against his
debtor.
(7) A carrier's lien may be enforced in accordance with
either subsection (1) or the procedure set forth in subsection
(2) of RCW 62A.7-210.
(8) The carrier is liable for damages caused by failure to
comply with the requirements for sale under this section and
in case of willful violation is liable for conversion. [1965
ex.s. c 157 § 7-308. Cf. former RCW 22.04.340; 1913 c 99 §
33; RRS § 3619.]
(2004 Ed.)
Warehouse Receipts, Bills of Lading and Other Documents of Title
62A.7-309
62A.7-309 Duty of care; contractual limitation of
carrier's liability. Save as otherwise provided in RCW
81.29.010 and 81.29.020
(1) A carrier who issues a bill of lading whether negotiable or non-negotiable must exercise the degree of care in relation to the goods which a reasonably careful man would exercise under like circumstances.
(2) Damages may be limited by a provision that the carrier's liability shall not exceed a value stated in the document
if the carrier's rates are dependent upon value and the consignor by the carrier's tariff is afforded an opportunity to
declare a higher value or a value as lawfully provided in the
tariff, or where no tariff is filed he is otherwise advised of
such opportunity; but no such limitation is effective with
respect to the carrier's liability for conversion to its own use.
(3) Reasonable provisions as to the time and manner of
presenting claims and instituting actions based on the shipment may be included in a bill of lading or tariff. [1965 ex.s.
c 157 § 7-309. Cf. former RCW 81.32.031; 1961 c 14 §
81.32.031; prior: 1915 c 159 § 3; RRS § 3649; formerly
RCW 81.32.040.]
Common carriers—Limitation on liability: Chapter 81.29 RCW.
62A.7-401
62A.7-401 Irregularities in issue of receipt or bill or
conduct of issuer. The obligations imposed by this Article
on an issuer apply to a document of title regardless of the fact
that
(a) the document may not comply with the requirements
of this Article or of any other law or regulation regarding its
issue, form or content; or
(b) the issuer may have violated laws regulating the conduct of his business; or
(c) the goods covered by the document were owned by
the bailee at the time the document was issued; or
(d) the person issuing the document does not come
within the definition of warehouseman if it purports to be a
warehouse receipt. [1965 ex.s. c 157 § 7-401. Cf. former
RCW sections: (i) RCW 22.04.210; 1913 c 99 § 20; RRS §
3606. (ii) RCW 81.32.231; 1961 c 14 § 81.32.231; prior:
1915 c 159 § 23; RRS § 3669; formerly RCW 81.32.240.]
62A.7-402
62A.7-402 Duplicate receipt or bill; overissue. Neither a duplicate nor any other document of title purporting to
cover goods already represented by an outstanding document
of the same issuer confers any right in the goods, except as
provided in the case of bills in a set, overissue of documents
for fungible goods and substitutes for lost, stolen or destroyed
documents. But the issuer is liable for damages caused by his
overissue or failure to identify a duplicate document as such
by conspicuous notation on its face. [1965 ex.s. c 157 § 7402. Cf. former RCW sections: (i) RCW 22.04.070; 1913 c
99 § 6; RRS § 3592; prior: 1886 p 121 § 5. (ii) RCW
81.32.071; 1961 c 14 § 81.32.071; prior: 1915 c 159 § 7;
RRS § 3653; formerly RCW 81.32.080.]
62A.7-403
62A.7-403 Obligation of warehouseman or carrier to
deliver; excuse. (1) The bailee must deliver the goods to a
person entitled under the document who complies with subsections (2) and (3), unless and to the extent that the bailee
establishes any of the following:
(2004 Ed.)
62A.7-501
(a) delivery of the goods to a person whose receipt was
rightful as against the claimant;
(b) damage to or delay, loss or destruction of the goods
for which the bailee is not liable;
(c) previous sale or other disposition of the goods in lawful enforcement of a lien or on warehouseman's lawful termination of storage;
(d) the exercise by a seller of his right to stop delivery
pursuant to the provisions of the Article on Sales (RCW
62A.2-705);
(e) a diversion, reconsignment or other disposition pursuant to the provisions of this Article (RCW 62A.7-303) or
tariff regulating such right;
(f) release, satisfaction or any other fact affording a personal defense against the claimant;
(g) any other lawful excuse.
(2) A person claiming goods covered by a document of
title must satisfy the bailee's lien where the bailee so requests
or where the bailee is prohibited by law from delivering the
goods until the charges are paid.
(3) Unless the person claiming is one against whom the
document confers no right under RCW 62A.7-503(1), he
must surrender for cancellation or notation of partial deliveries any outstanding negotiable document covering the goods,
and the bailee must cancel the document or conspicuously
note the partial delivery thereon or be liable to any person to
whom the document is duly negotiated.
(4) "Person entitled under the document" means holder
in the case of a negotiable document, or the person to whom
delivery is to be made by the terms of or pursuant to written
instructions under a non-negotiable document. [1965 ex.s. c
157 § 7-403. Cf. former RCW sections: (i) RCW 22.04.090,
and 22.04.100; 1913 c 99 §§ 8 and 9; RRS §§ 3594, and
3595; prior: 1891 c 134 §§ 6, and 7. (ii) RCW 22.04.110,
22.04.130, 22.04.170, and 22.04.200; 1913 c 99 §§ 10, 12,
16, and 19; RRS §§ 3596, 3598, 3602, and 3605. (iii) RCW
22.04.120; 1913 c 99 § 11; RRS § 3597; prior: 1886 p 121 §
7. (iv) RCW 81.32.111 through 81.32.151, 81.32.191, and
81.32.221; 1961 c 14 §§ 81.32.111 through 81.32.151,
81.32.191, and 81.32.221; 1915 c 159 §§ 11 through 15, 19,
and 22; RRS §§ 3657 through 3661, 3665, and 3668; formerly RCW 81.32.120 through 81.32.160, 81.32.200, and
81.32.230.]
62A.7-404
62A.7-404 No liability for good faith delivery pursuant to receipt or bill. A bailee who in good faith including
observance of reasonable commercial standards has received
goods and delivered or otherwise disposed of them according
to the terms of the document of title or pursuant to this Article
is not liable therefor. This rule applies even though the person
from whom he received the goods had no authority to procure
the document or to dispose of the goods and even though the
person to whom he delivered the goods had no authority to
receive them. [1965 ex.s. c 157 § 7-404. Cf. former RCW
sections: (i) RCW 22.04.110; 1913 c 99 § 10; RRS § 3596.
(ii) RCW 81.32.131; 1961 c 14 § 81.32.131; prior: 1915 c
159 § 13; RRS § 3659; formerly RCW 81.32.140.]
62A.7-501
62A.7-501 Form of negotiation and requirements of
"due negotiation". (1) A negotiable document of title run[Title 62A RCW—page 97]
62A.7-502
Title 62A RCW: Uniform Commercial Code
ning to the order of a named person is negotiated by his
indorsement and delivery. After his indorsement in blank or
to bearer any person can negotiate it by delivery alone.
(2) (a) A negotiable document of title is also negotiated
by delivery alone when by its original terms it runs to bearer;
(b) when a document running to the order of a named
person is delivered to him the effect is the same as if the document had been negotiated.
(3) Negotiation of a negotiable document of title after it
has been indorsed to a specified person requires indorsement
by the special indorsee as well as delivery.
(4) A negotiable document of title is "duly negotiated"
when it is negotiated in the manner stated in this section to a
holder who purchases it in good faith without notice of any
defense against or claim to it on the part of any person and for
value, unless it is established that the negotiation is not in the
regular course of business or financing or involves receiving
the document in settlement or payment of a money obligation.
(5) Indorsement of a non-negotiable document neither
makes it negotiable nor adds to the transferee's rights.
(6) The naming in a negotiable bill of a person to be notified of the arrival of the goods does not limit the negotiability
of the bill nor constitute notice to a purchaser thereof of any
interest of such person in the goods. [1965 ex.s. c 157 § 7501. Cf. former RCW sections: (i) RCW 22.04.380 through
22.04.410, and 22.04.480; 1913 c 99 §§ 37 through 40, and
47; RRS §§ 3623 through 3626, and 3633. (ii) RCW
63.04.290, 63.04.300, 63.04.320, 63.04.330, and 63.04.390;
1925 ex.s. c 142 §§ 28, 29, 31, 32, and 38; RRS §§ 5836-28,
5836-29, 5836-31, 5836-32 and 5836-38. (iii) RCW
81.32.281 through 81.32.311, and 81.32.381; 1961 c 14 §§
81.32.281 through 81.32.311, and 81.32.381; prior: 1915 c
159 §§ 28 through 31, and 38; RRS §§ 3674 through 3677,
and 3684; formerly RCW 81.32.370 through 81.32.400, and
81.32.470.]
62A.7-502 Rights acquired by due negotiation. (1)
Subject to the following section and to the provisions of
RCW 62A.7-205 on fungible goods, a holder to whom a
negotiable document of title has been duly negotiated
acquires thereby:
(a) title to the document;
(b) title to the goods;
(c) all rights accruing under the law of agency or estoppel, including rights to goods delivered to the bailee after the
document was issued; and
(d) the direct obligation of the issuer to hold or deliver
the goods according to the terms of the document free of any
defense or claim by him except those arising under the terms
of the document or under this Article. In the case of a delivery
order the bailee's obligation accrues only upon acceptance
and the obligation acquired by the holder is that the issuer and
any indorser will procure the acceptance of the bailee.
(2) Subject to the following section, title and rights so
acquired are not defeated by any stoppage of the goods represented by the document or by surrender of such goods by the
bailee, and are not impaired even though the negotiation or
any prior negotiation constituted a breach of duty or even
though any person has been deprived of possession of the
document by misrepresentation, fraud, accident, mistake,
62A.7-502
[Title 62A RCW—page 98]
duress, loss, theft or conversion, or even though a previous
sale or other transfer of the goods or document has been made
to a third person. [1965 ex.s. c 157 § 7-502. Cf. former RCW
sections: (i) RCW 22.04.420, and 22.04.480 through
22.04.500; 1913 c 99 §§ 41, and 47 through 49; RRS §§ 3627,
and 3633 through 3635. (ii) RCW 63.04.210(4), 63.04.260,
63.04.340, 63.04.390, and 63.04.630; 1925 ex.s. c 142 §§ 20,
25, 33, 38, and 62; RRS §§ 5836-20, 5836-25, 5836-33,
5836-38, and 5836-62. (iii) RCW 81.32.321, 81.32.381,
81.32.391, 81.32.401, and 81.32.421; 1961 c 14 §§
81.32.321, 81.32.381, 81.32.391, 81.32.401, and 81.32.421;
prior: 1915 c 159 §§ 32, 38, 39, 40, and 42; RRS §§ 3678,
3684, 3685, 3686, and 3688; formerly RCW 81.32.410,
81.32.470, 81.32.480, 81.32.490, and 81.32.510.]
62A.7-503
62A.7-503 Document of title to goods defeated in certain cases. (1) A document of title confers no right in goods
against a person who before issuance of the document had a
legal interest or a perfected security interest in them and who
neither
(a) delivered or entrusted them or any document of title
covering them to the bailor or his nominee with actual or
apparent authority to ship, store or sell or with power to
obtain delivery under this Article (RCW 62A.7-403) or with
power of disposition under this Title (RCW 62A.2-403 and
62A.9A-320) or other statute or rule of law; nor
(b) acquiesced in the procurement by the bailor or his
nominee of any document of title.
(2) Title to goods based upon an unaccepted delivery
order is subject to the rights of anyone to whom a negotiable
warehouse receipt or bill of lading covering the goods has
been duly negotiated. Such a title may be defeated under the
next section to the same extent as the rights of the issuer or a
transferee from the issuer.
(3) Title to goods based upon a bill of lading issued to a
freight forwarder is subject to the rights of anyone to whom a
bill issued by the freight forwarder is duly negotiated; but
delivery by the carrier in accordance with Part 4 of this Article pursuant to its own bill of lading discharges the carrier's
obligation to deliver. [2000 c 250 § 9A-814; 1965 ex.s. c 157
§ 7-503. Cf. former RCW sections: (i) RCW 22.04.420; 1913
c 99 § 41; RRS § 3627. (ii) RCW 63.04.340; 1925 ex.s. c 142
§ 33; RRS § 5836-33. (iii) RCW 81.32.321; 1961 c 14 §
81.32.321; prior: 1915 c 159 § 32; RRS § 3678; formerly
RCW 81.32.410.]
Effective date—2000 c 250: See RCW 62A.9A-701.
62A.7-504
62A.7-504 Rights acquired in the absence of due
negotiation; effect of diversion; seller's stoppage of delivery. (1) A transferee of a document, whether negotiable or
non-negotiable, to whom the document has been delivered
but not duly negotiated, acquires the title and rights which his
transferor had or had actual authority to convey.
(2) In the case of a non-negotiable document, until but
not after the bailee receives notification of the transfer, the
rights of the transferee may be defeated
(a) by those creditors of the transferor who could treat
the sale as void under RCW 62A.7-402; or
(2004 Ed.)
Warehouse Receipts, Bills of Lading and Other Documents of Title
(b) by a buyer from the transferor in ordinary course of
business if the bailee has delivered the goods to the buyer or
received notification of his rights; or
(c) as against the bailee by good faith dealings of the bailee with the transferor.
(3) A diversion or other change of shipping instructions
by the consignor in a non-negotiable bill of lading which
causes the bailee not to deliver to the consignee defeats the
consignee's title to the goods if they have been delivered to a
buyer in ordinary course of business and in any event defeats
the consignee's rights against the bailee.
(4) Delivery pursuant to a non-negotiable document may
be stopped by a seller under RCW 62A.2-705, and subject to
the requirement of due notification there provided. A bailee
honoring the seller's instructions is entitled to be indemnified
by the seller against any resulting loss or expense. [1965
ex.s. c 157 § 7-504. Cf. former RCW sections: (i) RCW
22.04.420(2) and 22.04.430; 1913 c 99 §§ 41 and 42; RRS §§
3627, and 3628. (ii) RCW 63.04.350; 1925 ex.s. c 142 § 34;
RRS § 5834-34. (iii) RCW 81.32.321(2) and 81.32.331; 1961
c 14 §§ 81.32.321 and 81.32.331; prior: 1915 c 159 §§ 32
and 33; RRS §§ 3678 and 3679; formerly RCW 81.32.410
and 81.32.420.]
62A.7-602
5836-36. (iii) RCW 81.32.351; 1961 c 14 § 81.32.351; prior:
1915 c 159 § 35; RRS § 3681; formerly RCW 81.32.440.]
62A.7-508
62A.7-508 Warranties of collecting bank as to documents. A collecting bank or other intermediary known to be
entrusted with documents on behalf of another or with collection of a draft or other claim against delivery of documents
warrants by such delivery of the documents only its own
good faith and authority. This rule applies even though the
intermediary has purchased or made advances against the
claim or draft to be collected. [1965 ex.s. c 157 § 7-508. Cf.
former RCW sections: (i) RCW 22.04.470; 1913 c 99 § 46;
RRS § 3632. (ii) RCW 81.32.371; 1961 c 14 § 81.32.371;
prior: 1915 c 159 § 37; RRS § 3683; formerly RCW
81.32.460.]
62A.7-509
62A.7-509 Receipt or bill: When adequate compliance with commercial contract. The question whether a
document is adequate to fulfill the obligations of a contract
for sale or the conditions of a credit is governed by the Articles on Sales (Article 2) and on Letters of Credit (Article 5).
[1965 ex.s. c 157 § 7-509.]
62A.7-601
62A.7-505
62A.7-505 Indorser not a guarantor for other parties. The indorsement of a document of title issued by a bailee does not make the indorser liable for any default by the
bailee or by previous indorsers. [1965 ex.s. c 157 § 7-505.
Cf. former RCW sections: (i) RCW 22.04.460; 1913 c 99 §
45; RRS § 3631. (ii) RCW 63.04.380; 1925 ex.s. c 142 § 37;
RRS § 5836-37. (iii) RCW 81.32.361; 1961 c 14 § 81.32.361;
prior: 1915 c 159 § 36; RRS § 3682; formerly RCW
81.32.450.]
62A.7-506
62A.7-506 Delivery without indorsement: Right to
compel indorsement. The transferee of a negotiable document of title has a specifically enforceable right to have his
transferor supply any necessary indorsement but the transfer
becomes a negotiation only as of the time the indorsement is
supplied. [1965 ex.s. c 157 § 7-506. Cf. former RCW sections: (i) RCW 22.04.440; 1913 c 99 § 43; RRS § 3629. (ii)
RCW 63.04.360; 1925 ex.s. c 142 § 35; RRS § 5836-35. (iii)
RCW 81.32.341; 1961 c 14 § 81.32.341; prior: 1915 c 159 §
34; RRS § 3680; formerly RCW 81.32.430.]
62A.7-507
62A.7-507 Warranties on negotiation or transfer of
receipt or bill. Where a person negotiates or transfers a document of title for value otherwise than as a mere intermediary
under the next following section, then unless otherwise
agreed he warrants to his immediate purchaser only in addition to any warranty made in selling the goods
(a) that the document is genuine; and
(b) that he has no knowledge of any fact which would
impair its validity or worth; and
(c) that his negotiation or transfer is rightful and fully
effective with respect to the title to the document and the
goods it represents. [1965 ex.s. c 157 § 7-507. Cf. former
RCW sections: (i) RCW 22.04.450; 1913 c 99 § 44; RRS §
3630. (ii) RCW 63.04.370; 1925 ex.s. c 142 § 36; RRS §
(2004 Ed.)
62A.7-601 Lost and missing documents. (1) If a document has been lost, stolen or destroyed, a court may order
delivery of the goods or issuance of a substitute document
and the bailee may without liability to any person comply
with such order. If the document was negotiable the claimant
must post security approved by the court to indemnify any
person who may suffer loss as a result of non-surrender of the
document. If the document was not negotiable, such security
may be required at the discretion of the court. The court may
also in its discretion order payment of the bailee's reasonable
costs and counsel fees.
(2) A bailee who without court order delivers goods to a
person claiming under a missing negotiable document is liable to any person injured thereby, and if the delivery is not in
good faith becomes liable for conversion. Delivery in good
faith is not conversion if made in accordance with a filed
classification or tariff or, where no classification or tariff is
filed, if the claimant posts security with the bailee in an
amount at least double the value of the goods at the time of
posting to indemnify any person injured by the delivery who
files a notice of claim within one year after the delivery.
[1965 ex.s. c 157 § 7-601. Cf. former RCW sections: (i)
RCW 22.04.150; 1913 c 99 § 14; RRS § 3600. (ii) RCW
81.32.171; 1961 c 14 § 81.32.171; prior: 1915 c 159 § 17;
RRS § 3663; formerly RCW 81.32.180.]
62A.7-602
62A.7-602 Attachment of goods covered by a negotiable document. Except where the document was originally
issued upon delivery of the goods by a person who had no
power to dispose of them, no lien attaches by virtue of any
judicial process to goods in the possession of a bailee for
which a negotiable document of title is outstanding unless the
document be first surrendered to the bailee or its negotiation
enjoined, and the bailee shall not be compelled to deliver the
goods pursuant to process until the document is surrendered
to him or impounded by the court. One who purchases the
document for value without notice of the process or injunc[Title 62A RCW—page 99]
62A.7-603
Title 62A RCW: Uniform Commercial Code
tion takes free of the lien imposed by judicial process. [1965
ex.s. c 157 § 7-602. Cf. former RCW sections: (i) RCW
22.04.260; 1913 c 99 § 25; RRS § 3611. (ii) RCW 81.32.241;
1961 c 14 § 81.32.241; prior: 1915 c 159 § 24; RRS § 3670;
formerly RCW 81.32.250.]
62A.7-603
62A.7-603 Conflicting claims; interpleader. If more
than one person claims title or possession of the goods, the
bailee is excused from delivery until he has had a reasonable
time to ascertain the validity of the adverse claims or to bring
an action to compel all claimants to interplead and may compel such interpleader, either in defending an action for nondelivery of the goods, or by original action, whichever is
appropriate. [1965 ex.s. c 157 § 7-603. Cf. former RCW sections: (i) RCW 22.04.170 and 22.04.180; 1913 c 99 §§ 16
and 17; RRS §§ 3602 and 3603. (ii) RCW 81.32.201 and
81.32.211; 1961 c 14 §§ 81.32.201 and 81.32.211; prior:
1915 c 159 §§ 20 and 21; RRS §§ 3666 and 3667; formerly
RCW 81.32.210 and 81.32.220.]
PART 4
REGISTRATION
62A.8-401
62A.8-402
62A.8-403
62A.8-404
62A.8-405
62A.8-406
62A.8-407
PART 5
SECURITY ENTITLEMENTS
62A.8-501
62A.8-502
62A.8-503
62A.8-504
62A.8-505
62A.8-506
62A.8-507
62A.8-508
Article 8
Article 8
INVESTMENT SECURITIES
PART 1
SHORT TITLE AND GENERAL MATTERS
62A.8-101
62A.8-102
62A.8-103
62A.8-104
62A.8-105
62A.8-106
62A.8-107
62A.8-108
62A.8-109
62A.8-110
62A.8-111
62A.8-112
62A.8-113
62A.8-114
62A.8-115
62A.8-116
Short title.
Definitions.
Rules for determining whether certain obligations and interests
are securities or financial assets.
Acquisition of security or financial asset or interest therein.
Notice of adverse claim.
Control.
Whether indorsement, instruction, or entitlement is effective.
Warranties in direct holding.
Warranties in indirect holding.
Applicability; choice of law.
Clearing corporation rules.
Creditor's legal process.
Statute of frauds inapplicable.
Evidentiary rules concerning certificated securities.
Securities intermediary and others not liable to adverse claimant.
Securities intermediary as purchaser for value.
PART 2
ISSUE AND ISSUER
62A.8-201
62A.8-202
62A.8-203
62A.8-204
62A.8-205
62A.8-206
62A.8-207
62A.8-208
62A.8-209
62A.8-210
Issuer.
Issuer's responsibility and defenses; notice of defect or
defense.
Staleness as notice of defect or defense.
Effect of issuer's restrictions on transfer.
Effect of unauthorized signature on security certificate.
Completion or alteration of security certificate.
Rights and duties of issuer with respect to registered owners.
Effect of signature of authenticating trustee, registrar, or transfer agent.
Issuer's lien.
Overissue.
PART 3
TRANSFER OF CERTIFICATED AND
UNCERTIFICATED SECURITIES
62A.8-301
62A.8-302
62A.8-303
62A.8-304
62A.8-305
62A.8-306
62A.8-307
62A.8-509
62A.8-510
Sections
Delivery.
Rights of purchaser.
Protected purchaser.
Indorsement.
Instruction.
Effect of guaranteeing signature, indorsement, or instruction.
Purchaser's right to requisites for registration of transfer.
[Title 62A RCW—page 100]
Duty of issuer to register transfer.
Assurance that indorsement or instruction is effective.
Demand that issuer not register transfer.
Wrongful registration.
Replacement of lost, destroyed, or wrongfully taken security
certificate.
Obligation to notify issuer of lost, destroyed, or wrongfully
taken security certificate.
Authenticating trustee, transfer agent, and registrar.
62A.8-511
Securities account; acquisition of security entitlement from
securities intermediary.
Assertion of adverse claim against entitlement holder.
Property interest of entitlement holder in financial asset held
by securities intermediary.
Duty of securities intermediary to maintain financial asset.
Duty of securities intermediary with respect to payments and
distributions.
Duty of securities intermediary to exercise rights as directed
by entitlement holder.
Duty of securities intermediary to comply with entitlement
order.
Duty of securities intermediary to change entitlement holder's
position to other form of security holding.
Specification of duties of securities intermediary by other statute or regulation; manner of performance of duties of securities intermediary and exercise of rights of entitlement holder.
Rights of purchaser of security entitlement from entitlement
holder.
Priority among security interests and entitlement holders.
PART 6
TRANSITION PROVISIONS FOR REVISED ARTICLE 8 AND
CONFORMING AMENDMENTS TO ARTICLES 1, 5, 9, AND 10
62A.8-601
Savings clause.
62A.8-101
62A.8-101 Short title. This Article may be cited as
Uniform Commercial Code—Investment Securities. [1995 c
48 § 1; 1965 ex.s. c 157 § 8-101.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-102 Definitions. (1) In this Article:
(a) "Adverse claim" means a claim that a claimant has a
property interest in a financial asset and that it is a violation
of the rights of the claimant for another person to hold, transfer, or deal with the financial asset.
(b) "Bearer form," as applied to a certificated security,
means a form in which the security is payable to the bearer of
the security certificate according to its terms but not by reason of an indorsement.
(c) "Broker" means a person defined as a broker or dealer
under the federal securities laws, but without excluding a
bank acting in that capacity.
(d) "Certificated security" means a security that is represented by a certificate.
(e) "Clearing corporation" means:
(i) A person that is registered as a "clearing agency"
under the federal securities laws;
(ii) A federal reserve bank; or
(iii) Any other person that provides clearance or settlement services with respect to financial assets that would
require it to register as a clearing agency under the federal
securities laws but for an exclusion or exemption from the
registration requirement, if its activities as a clearing corporation, including adoption of rules, are subject to regulation by
a federal or state governmental authority.
62A.8-102
(2004 Ed.)
Investment Securities
(f) "Communicate" means to:
(i) Send a signed writing; or
(ii) Transmit information by any mechanism agreed
upon by the persons transmitting and receiving the information.
(g) "Entitlement holder" means a person identified in the
records of a securities intermediary as the person having a
security entitlement against the securities intermediary. If a
person acquires a security entitlement by virtue of RCW
62A.8-501(2) (b) or (c), that person is the entitlement holder.
(h) "Entitlement order" means a notification communicated to a securities intermediary directing transfer or
redemption of a financial asset to which the entitlement
holder has a security entitlement.
(i) "Financial asset," except as otherwise provided in
RCW 62A.8-103, means:
(i) A security;
(ii) An obligation of a person or a share, participation, or
other interest in a person or in property or an enterprise of a
person, which is, or is of a type, dealt in or traded on financial
markets, or which is recognized in any area in which it is
issued or dealt in as a medium for investment; or
(iii) Any property that is held by a securities intermediary for another person in a securities account if the securities
intermediary has expressly agreed with the other person that
the property is to be treated as a financial asset under this
Article.
As context requires, the term means either the interest itself
or the means by which a person's claim to it is evidenced,
including a certificated or uncertificated security, a security
certificate, or a security entitlement.
(j) "Good faith," for purposes of the obligation of good
faith in the performance or enforcement of contracts or duties
within this Article, means honesty in fact and the observance
of reasonable commercial standards of fair dealing.
(k) "Indorsement" means a signature that alone or
accompanied by other words is made on a security certificate
in registered form or on a separate document for the purpose
of assigning, transferring, or redeeming the security or granting a power to assign, transfer, or redeem it.
(l) "Instruction" means a notification communicated to
the issuer of an uncertificated security which directs that the
transfer of the security be registered or that the security be
redeemed.
(m) "Registered form," as applied to a certificated security, means a form in which:
(i) The security certificate specifies a person entitled to
the security; and
(ii) A transfer of the security may be registered upon
books maintained for that purpose by or on behalf of the
issuer, or the security certificate so states.
(n) "Securities intermediary" means:
(i) A clearing corporation; or
(ii) A person, including a bank or broker, that in the ordinary course of its business maintains securities accounts for
others and is acting in that capacity.
(o) "Security," except as otherwise provided in RCW
62A.8-103, means an obligation of an issuer or a share, participation, or other interest in an issuer or in property or an
enterprise of an issuer:
(2004 Ed.)
62A.8-103
(i) Which is represented by a security certificate in
bearer or registered form, or the transfer of which may be registered upon books maintained for that purpose by or on
behalf of the issuer;
(ii) Which is one of a class or series or by its terms is
divisible into a class or series of shares, participations, interests, or obligations; and
(iii) Which:
(A) Is, or is of a type, dealt in or traded on securities
exchanges or securities markets; or
(B) Is a medium for investment and by its terms
expressly provides that it is a security governed by this Article.
(p) "Security certificate" means a certificate representing
a security.
(q) "Security entitlement" means the rights and property
interest of an entitlement holder with respect to a financial
asset specified in Part 5 of this Article.
(r) "Uncertificated security" means a security that is not
represented by a certificate.
(2) Other definitions applying to this Article and the sections in which they appear are:
Appropriate person
RCW 62A.8-107
Control
RCW 62A.8-106
Delivery
RCW 62A.8-301
Investment company security RCW 62A.8-103
Issuer
RCW 62A.8-201
Overissue
RCW 62A.8-210
Protected purchaser
RCW 62A.8-303
Securities account
RCW 62A.8-501
(3) In addition Article 1 contains general definitions and
principles of construction and interpretation applicable
throughout this Article.
(4) The characterization of a person, business, or transaction for purposes of this Article does not determine the characterization of the person, business, or transaction for purposes of any other law, regulation, or rule. [1995 c 48 § 2;
1986 c 35 § 1; 1973 c 98 § 1; 1965 ex.s. c 157 § 8-102. Cf.
former RCW 62.01.001; 1955 c 35 § 62.01.001; prior: 1899
c 149 § 1; RRS § 3392.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-103
62A.8-103 Rules for determining whether certain
obligations and interests are securities or financial assets.
(1) A share or similar equity interest issued by a corporation,
business trust, joint stock company, or similar entity is a
security.
(2) An "investment company security" is a security.
"Investment company security" means a share or similar
equity interest issued by an entity that is registered as an
investment company under the federal investment company
laws, an interest in a unit investment trust that is so registered, or a face-amount certificate issued by a face-amount
certificate company that is so registered. Investment company security does not include an insurance policy or endowment policy or annuity contract issued by an insurance company.
(3) An interest in a partnership or limited liability company is not a security unless it is dealt in or traded on securities exchanges or in securities markets, its terms expressly
[Title 62A RCW—page 101]
62A.8-104
Title 62A RCW: Uniform Commercial Code
provide that it is a security governed by this Article, or it is an
investment company security. However, an interest in a partnership or limited liability company is a financial asset if it is
held in a securities account.
(4) A writing that is a security certificate is governed by
this Article and not by Article 3, even though it also meets the
requirements of that Article. However, a negotiable instrument governed by Article 3 is a financial asset if it is held in
a securities account.
(5) An option or similar obligation issued by a clearing
corporation to its participants is not a security, but is a financial asset.
(6) A commodity contract, as defined in RCW
62A.9A-102(a)(15), is not a security or a financial asset.
[2000 c 250 § 9A-815; 1995 c 48 § 3; 1986 c 35 § 2; 1965
ex.s. c 157 § 8-103. Cf. former RCW 23.80.150; 1939 c 100
§ 15; RRS § 3803-115; formerly RCW 23.20.140.]
Effective date—2000 c 250: See RCW 62A.9A-701.
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-104
62A.8-104 Acquisition of security or financial asset
or interest therein. (1) A person acquires a security or an
interest therein, under this Article, if:
(a) The person is a purchaser to whom a security is delivered pursuant to RCW 62A.8-301; or
(b) The person acquires a security entitlement to the
security pursuant to RCW 62A.8-501.
(2) A person acquires a financial asset, other than a security, or an interest therein, under this Article, if the person
acquires a security entitlement to the financial asset.
(3) A person who acquires a security entitlement to a
security or other financial asset has the rights specified in Part
5 of this Article, but is a purchaser of any security, security
entitlement, or other financial asset held by the securities
intermediary only to the extent provided in RCW 62A.8-503.
(4) Unless the context shows that a different meaning is
intended, a person who is required by other law, regulation,
rule, or agreement to transfer, deliver, present, surrender,
exchange, or otherwise put in the possession of another person a security or financial asset satisfies that requirement by
causing the other person to acquire an interest in the security
or financial asset pursuant to subsection (1) or (2) of this section. [1995 c 48 § 4; 1986 c 35 § 3; 1965 ex.s. c 157 § 8-104.]
Effective date—1995 c 48: See RCW 62A.11-113.
Corporations—Purchase of own shares: RCW 23B.06.030 and 23B.06.310.
62A.8-105
62A.8-105 Notice of adverse claim. (1) A person has
notice of an adverse claim if:
(a) The person knows of the adverse claim;
(b) The person is aware of facts sufficient to indicate that
there is a significant probability that the adverse claim exists
and deliberately avoids information that would establish the
existence of the adverse claim; or
(c) The person has a duty, imposed by statute or regulation, to investigate whether an adverse claim exists, and the
investigation so required would establish the existence of the
adverse claim.
(2) Having knowledge that a financial asset or interest
therein is or has been transferred by a representative imposes
no duty of inquiry into the rightfulness of a transaction and is
[Title 62A RCW—page 102]
not notice of an adverse claim. However, a person who
knows that a representative has transferred a financial asset or
interest therein in a transaction that is, or whose proceeds are
being used, for the individual benefit of the representative or
otherwise in breach of duty has notice of an adverse claim.
(3) An act or event that creates a right to immediate performance of the principal obligation represented by a security
certificate or sets a date on or after which the certificate is to
be presented or surrendered for redemption or exchange does
not itself constitute notice of an adverse claim except in the
case of a transfer more than:
(a) One year after a date set for presentment or surrender
for redemption or exchange; or
(b) Six months after a date set for payment of money
against presentation or surrender of the certificate, if money
was available for payment on that date.
(4) A purchaser of a certificated security has notice of an
adverse claim if the security certificate:
(a) Whether in bearer or registered form, has been
indorsed "for collection" or "for surrender" or for some other
purpose not involving transfer; or
(b) Is in bearer form and has on it an unambiguous statement that it is the property of a person other than the transferor, but the mere writing of a name on the certificate is not
such a statement.
(5) Filing of a financing statement under *Article 9 is not
notice of an adverse claim to a financial asset. [1995 c 48 §
5; 1986 c 35 § 4; 1965 ex.s. c 157 § 8-105. Cf. former RCW
62.01.001; 1955 c 35 § 62.01.001; prior: 1899 c 149 § 1;
RRS § 3392.]
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001. For later enactment, see Article
62A.9A RCW.
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-106
62A.8-106 Control. (1) A purchaser has "control" of a
certificated security in bearer form if the certificated security
is delivered to the purchaser.
(2) A purchaser has "control" of a certificated security in
registered form if the certificated security is delivered to the
purchaser, and:
(a) The certificate is indorsed to the purchaser or in blank
by an effective indorsement; or
(b) The certificate is registered in the name of the purchaser, upon original issue or registration of transfer by the
issuer.
(3) A purchaser has "control" of an uncertificated security if:
(a) The uncertificated security is delivered to the purchaser; or
(b) The issuer has agreed that it will comply with instructions originated by the purchaser without further consent by
the registered owner.
(4) A purchaser has "control" of a security entitlement if:
(a) The purchaser becomes the entitlement holder;
(b) The securities intermediary has agreed that it will
comply with entitlement orders originated by the purchaser
without further consent by the entitlement holder; or
(c) Another person has control of the security entitlement
on behalf of the purchaser or, having previously acquired
(2004 Ed.)
Investment Securities
control of the security entitlement, acknowledges that it has
control on behalf of the purchaser.
(5) If an interest in a security entitlement is granted by
the entitlement holder to the entitlement holder's own securities intermediary, the securities intermediary has control.
(6) A purchaser who has satisfied the requirements of
subsection (3) or (4) of this section has control even if the
registered owner in the case of subsection (3) of this section
or the entitlement holder in the case of subsection (4) of this
section retains the right to make substitutions for the uncertificated security or security entitlement, to originate instructions or entitlement orders to the issuer or securities intermediary, or otherwise to deal with the uncertificated security or
security entitlement.
(7) An issuer or a securities intermediary may not enter
into an agreement of the kind described in subsection (3)(b)
or (4)(b) of this section without the consent of the registered
owner or entitlement holder, but an issuer or a securities
intermediary is not required to enter into such an agreement
even though the registered owner or entitlement holder so
directs. An issuer or securities intermediary that has entered
into such an agreement is not required to confirm the existence of the agreement to another party unless requested to do
so by the registered owner or entitlement holder. [2000 c 250
§ 9A-816; 1995 c 48 § 6; 1986 c 35 § 5; 1965 ex.s. c 157 § 8106.]
Effective date—2000 c 250: See RCW 62A.9A-701.
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-107
62A.8-107 Whether indorsement, instruction, or
entitlement is effective. (1) "Appropriate person" means:
(a) With respect to an indorsement, the person specified
by a security certificate or by an effective special indorsement to be entitled to the security;
(b) With respect to an instruction, the registered owner of
an uncertificated security;
(c) With respect to an entitlement order, the entitlement
holder;
(d) If the person designated in (a), (b), or (c) of this subsection is deceased, the designated person's successor taking
under other law or the designated person's personal representative acting for the estate of the decedent; or
(e) If the person designated in (a), (b), or (c) of this subsection lacks capacity, the designated person's guardian, conservator, or other similar representative who has power under
other law to transfer the security or financial asset.
(2) An indorsement, instruction, or entitlement order is
effective if:
(a) It is made by the appropriate person;
(b) It is made by a person who has power under the law
of agency to transfer the security or financial asset on behalf
of the appropriate person, including, in the case of an instruction or entitlement order, a person who has control under
RCW 62A.8-106 (3)(b) or (4)(b); or
(c) The appropriate person has ratified it or is otherwise
precluded from asserting its ineffectiveness.
(3) An indorsement, instruction, or entitlement order
made by a representative is effective even if:
(a) The representative has failed to comply with a controlling instrument or with the law of the state having juris(2004 Ed.)
62A.8-108
diction of the representative relationship, including any law
requiring the representative to obtain court approval of the
transaction; or
(b) The representative's action in making the indorsement, instruction, or entitlement order or using the proceeds
of the transaction is otherwise a breach of duty.
(4) If a security is registered in the name of or specially
indorsed to a person described as a representative, or if a
securities account is maintained in the name of a person
described as a representative, an indorsement, instruction, or
entitlement order made by the person is effective even though
the person is no longer serving in the described capacity.
(5) Effectiveness of an indorsement, instruction, or entitlement order is determined as of the date the indorsement,
instruction, or entitlement order is made, and an indorsement,
instruction, or entitlement order does not become ineffective
by reason of any later change of circumstances. [1995 c 48 §
7; 1986 c 35 § 6; 1965 ex.s. c 157 § 8-107.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-108
62A.8-108 Warranties in direct holding. (1) A person
who transfers a certificated security to a purchaser for value
warrants to the purchaser, and an indorser, if the transfer is by
indorsement, warrants to any subsequent purchaser, that:
(a) The certificate is genuine and has not been materially
altered;
(b) The transferor or indorser does not know of any fact
that might impair the validity of the security;
(c) There is no adverse claim to the security;
(d) The transfer does not violate any restriction on transfer;
(e) If the transfer is by indorsement, the indorsement is
made by an appropriate person, or if the indorsement is by an
agent, the agent has actual authority to act on behalf of the
appropriate person; and
(f) The transfer is otherwise effective and rightful.
(2) A person who originates an instruction for registration of transfer of an uncertificated security to a purchaser for
value warrants to the purchaser that:
(a) The instruction is made by an appropriate person, or
if the instruction is by an agent, the agent has actual authority
to act on behalf of the appropriate person;
(b) The security is valid;
(c) There is no adverse claim to the security; and
(d) At the time the instruction is presented to the issuer:
(i) The purchaser will be entitled to the registration of
transfer;
(ii) The transfer will be registered by the issuer free from
all liens, security interests, restrictions, and claims other than
those specified in the instruction;
(iii) The transfer will not violate any restriction on transfer; and
(iv) The requested transfer will otherwise be effective
and rightful.
(3) A person who transfers an uncertificated security to a
purchaser for value and does not originate an instruction in
connection with the transfer warrants that:
(a) The uncertificated security is valid;
(b) There is no adverse claim to the security;
[Title 62A RCW—page 103]
62A.8-109
Title 62A RCW: Uniform Commercial Code
(c) The transfer does not violate any restriction on transfer; and
(d) The transfer is otherwise effective and rightful.
(4) A person who indorses a security certificate warrants
to the issuer that:
(a) There is no adverse claim to the security; and
(b) The indorsement is effective.
(5) A person who originates an instruction for registration of transfer of an uncertificated security warrants to the
issuer that:
(a) The instruction is effective; and
(b) At the time the instruction is presented to the issuer
the purchaser will be entitled to the registration of transfer.
(6) A person who presents a certificated security for registration of transfer or for payment or exchange warrants to
the issuer that the person is entitled to the registration, payment, or exchange, but a purchaser for value and without
notice of adverse claims to whom transfer is registered warrants only that the person has no knowledge of any unauthorized signature in a necessary indorsement.
(7) If a person acts as agent of another in delivering a
certificated security to a purchaser, the identity of the principal was known to the person to whom the certificate was
delivered, and the certificate delivered by the agent was
received by the agent from the principal or received by the
agent from another person at the direction of the principal,
the person delivering the security certificate warrants only
that the delivering person has authority to act for the principal
and does not know of any adverse claim to the certificated
security.
(8) A secured party who redelivers a security certificate
received, or after payment and on order of the debtor delivers
the security certificate to another person, makes only the warranties of an agent under subsection (7) of this section.
(9) Except as otherwise provided in subsection (7) of this
section, a broker acting for a customer makes to the issuer
and a purchaser the warranties provided in subsections (1)
through (6) of this section. A broker that delivers a security
certificate to its customer, or causes its customer to be registered as the owner of an uncertificated security, makes to the
customer the warranties provided in subsection (1) or (2) of
this section, and has the rights and privileges of a purchaser
under this section. The warranties of and in favor of the broker acting as an agent are in addition to applicable warranties
given by and in favor of the customer. [1995 c 48 § 8; 1986
c 35 § 7.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-109
62A.8-109 Warranties in indirect holding. (1) A person who originates an entitlement order to a securities intermediary warrants to the securities intermediary that:
(a) The entitlement order is made by an appropriate person, or if the entitlement order is by an agent, the agent has
actual authority to act on behalf of the appropriate person;
and
(b) There is no adverse claim to the security entitlement.
(2) A person who delivers a security certificate to a securities intermediary for credit to a securities account or originates an instruction with respect to an uncertificated security
directing that the uncertificated security be credited to a secu[Title 62A RCW—page 104]
rities account makes to the securities intermediary the warranties specified in RCW 62A.8-108 (1) or (2).
(3) If a securities intermediary delivers a security certificate to its entitlement holder or causes its entitlement holder
to be registered as the owner of an uncertificated security, the
securities intermediary makes to the entitlement holder the
warranties specified in RCW 62A.8-108 (1) or (2). [1995 c
48 § 9.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-110
62A.8-110 Applicability; choice of law. (1) The local
law of the issuer's jurisdiction, as specified in subsection (4)
of this section, governs:
(a) The validity of a security;
(b) The rights and duties of the issuer with respect to registration of transfer;
(c) The effectiveness of registration of transfer by the
issuer;
(d) Whether the issuer owes any duties to an adverse
claimant to a security; and
(e) Whether an adverse claim can be asserted against a
person to whom transfer of a certificated or uncertificated
security is registered or a person who obtains control of an
uncertificated security.
(2) The local law of the securities intermediary's jurisdiction, as specified in subsection (5) of this section, governs:
(a) Acquisition of a security entitlement from the securities intermediary;
(b) The rights and duties of the securities intermediary
and entitlement holder arising out of a security entitlement;
(c) Whether the securities intermediary owes any duties
to an adverse claimant to a security entitlement; and
(d) Whether an adverse claim can be asserted against a
person who acquires a security entitlement from the securities intermediary or a person who purchases a security entitlement or interest therein from an entitlement holder.
(3) The local law of the jurisdiction in which a security
certificate is located at the time of delivery governs whether
an adverse claim can be asserted against a person to whom
the security certificate is delivered.
(4) "Issuer's jurisdiction" means the jurisdiction under
which the issuer of the security is organized or, if permitted
by the law of that jurisdiction, the law of another jurisdiction
specified by the issuer. An issuer organized under the law of
this state may specify the law of another jurisdiction as the
law governing the matters specified in subsection (1)(b)
through (e) of this section.
(5) The following rules determine a "securities intermediary's jurisdiction" for purposes of this section:
(a) If an agreement between the securities intermediary
and its entitlement holder governing the securities account
expressly provides that a particular jurisdiction is the securities intermediary's jurisdiction for purposes of this part, this
Article, or Article 62A.9A RCW, that jurisdiction is the securities intermediary's jurisdiction.
(b) If (a) of this subsection does not apply and an agreement between the securities intermediary and its entitlement
holder governing the securities account expressly provides
that the agreement is governed by the law of a particular
(2004 Ed.)
Investment Securities
jurisdiction, that jurisdiction is the securities intermediary's
jurisdiction.
(c) If neither (a) nor (b) of this subsection applies, and an
agreement between the securities intermediary and its entitlement holder governing the securities account expressly provides that the securities account is maintained at an office in
a particular jurisdiction, that jurisdiction is the securities
intermediary's jurisdiction.
(d) If (a), (b), and (c) of this subsection do not apply, the
securities intermediary's jurisdiction is the jurisdiction in
which the office identified in an account statement as the
office serving the entitlement holder's account is located.
(e) If (a), (b), (c), and (d) of this subsection do not apply,
the securities intermediary's jurisdiction is the jurisdiction in
which the chief executive office of the securities intermediary is located.
(6) A securities intermediary's jurisdiction is not determined by the physical location of certificates representing
financial assets, or by the jurisdiction in which is organized
the issuer of the financial asset with respect to which an entitlement holder has a security entitlement, or by the location
of facilities for data processing or other recordkeeping concerning the account. [2001 c 32 § 14; 2000 c 250 § 9A-817;
1995 c 48 § 10.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
Effective date—2000 c 250: See RCW 62A.9A-701.
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-111
62A.8-111 Clearing corporation rules. A rule adopted
by a clearing corporation governing rights and obligations
among the clearing corporation and its participants in the
clearing corporation is effective even if the rule conflicts with
this Title and affects another party who does not consent to
the rule. [1995 c 48 § 11.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-112
62A.8-112 Creditor's legal process. (1) The interest of
a debtor in a certificated security may be reached by a creditor only by actual seizure of the security certificate by the
officer making the attachment or levy, except as otherwise
provided in subsection (4) of this section. However, a certificated security for which the certificate has been surrendered
to the issuer may be reached by a creditor by legal process
upon the issuer.
(2) The interest of a debtor in an uncertificated security
may be reached by a creditor only by legal process upon the
issuer at its chief executive office in the United States, except
as otherwise provided in subsection (4) of this section.
(3) The interest of a debtor in a security entitlement may
be reached by a creditor only by legal process upon the securities intermediary with whom the debtor's securities account
is maintained, except as otherwise provided in subsection (4)
of this section.
(4) The interest of a debtor in a certificated security for
which the certificate is in the possession of a secured party, or
in an uncertificated security registered in the name of a
secured party, or a security entitlement maintained in the
name of a secured party, may be reached by a creditor by
legal process upon the secured party.
(2004 Ed.)
62A.8-115
(5) A creditor whose debtor is the owner of a certificated
security, uncertificated security, or security entitlement is
entitled to aid from a court of competent jurisdiction, by
injunction or otherwise, in reaching the certificated security,
uncertificated security, or security entitlement or in satisfying
the claim by means allowed at law or in equity in regard to
property that cannot readily be reached by other legal process. [1995 c 48 § 12.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-113
62A.8-113 Statute of frauds inapplicable. A contract
or modification of a contract for the sale or purchase of a
security is enforceable whether or not there is a writing
signed or record authenticated by a party against whom
enforcement is sought, even if the contract or modification is
not capable of performance within one year of its making.
[1995 c 48 § 13.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-114
62A.8-114 Evidentiary rules concerning certificated
securities. The following rules apply in an action on a certificated security against the issuer:
(1) Unless specifically denied in the pleadings, each signature on a security certificate or in a necessary indorsement
is admitted.
(2) If the effectiveness of a signature is put in issue, the
burden of establishing effectiveness is on the party claiming
under the signature, but the signature is presumed to be genuine or authorized.
(3) If signatures on a security certificate are admitted or
established, production of the certificate entitles a holder to
recover on it unless the defendant establishes a defense or a
defect going to the validity of the security.
(4) If it is shown that a defense or defect exists, the plaintiff has the burden of establishing that the plaintiff or some
person under whom the plaintiff claims is a person against
whom the defense or defect cannot be asserted. [1995 c 48 §
14.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-115
62A.8-115 Securities intermediary and others not liable to adverse claimant. A securities intermediary that has
transferred a financial asset pursuant to an effective entitlement order, or a broker or other agent or bailee that has dealt
with a financial asset at the direction of its customer or principal, is not liable to a person having an adverse claim to the
financial asset, unless the securities intermediary, or broker
or other agent or bailee:
(1) Took the action after it had been served with an
injunction, restraining order, or other legal process enjoining
it from doing so, issued by a court of competent jurisdiction,
and had a reasonable opportunity to act on the injunction,
restraining order, or other legal process; or
(2) Acted in collusion with the wrongdoer in violating
the rights of the adverse claimant; or
(3) In the case of a security certificate that has been stolen, acted with notice of the adverse claim. [1995 c 48 § 15.]
Effective date—1995 c 48: See RCW 62A.11-113.
[Title 62A RCW—page 105]
62A.8-116
Title 62A RCW: Uniform Commercial Code
62A.8-116
62A.8-116 Securities intermediary as purchaser for
value. A securities intermediary that receives a financial
asset and establishes a security entitlement to the financial
asset in favor of an entitlement holder is a purchaser for value
of the financial asset. A securities intermediary that acquires
a security entitlement to a financial asset from another securities intermediary acquires the security entitlement for value
if the securities intermediary acquiring the security entitlement establishes a security entitlement to the financial asset
in favor of an entitlement holder. [1995 c 48 § 16.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-201
62A.8-201 Issuer. (1) With respect to an obligation on
or a defense to a security, an "issuer" includes a person that:
(a) Places or authorizes the placing of its name on a security certificate, other than as authenticating trustee, registrar,
transfer agent, or the like, to evidence a share, participation,
or other interest in its property or in an enterprise, or to evidence its duty to perform an obligation represented by the
certificate;
(b) Creates a share, participation, or other interest in its
property or in an enterprise, or undertakes an obligation, that
is an uncertificated security;
(c) Directly or indirectly creates a fractional interest in
its rights or property, if the fractional interest is represented
by a security certificate; or
(d) Becomes responsible for, or in place of, another person described as an issuer in this section.
(2) With respect to an obligation on or defense to a security, a guarantor is an issuer to the extent of its guaranty,
whether or not its obligation is noted on a security certificate.
(3) With respect to registration of a transfer, issuer
means a person on whose behalf transfer books are maintained. [1995 c 48 § 17; 1986 c 35 § 8; 1965 ex.s. c 157 § 8201. Cf. former RCW sections: RCW 62.01.029, and
62.01.060 through 62.01.062; 1955 c 35 §§ 62.01.029, and
62.01.060 through 62.01.062; prior: 1899 c 149 §§ 29, and
60 through 62; RRS §§ 3420, and 3451 through 3453.]
Effective date—1995 c 48: See RCW 62A.11-113.
Corporations, effect of merger or consolidation: RCW 23B.11.060.
Securities Act, issuer: RCW 21.20.005(7).
62A.8-202
62A.8-202 Issuer's responsibility and defenses;
notice of defect or defense. (1) Even against a purchaser for
value and without notice, the terms of a certificated security
include terms stated on the certificate and terms made part of
the security by reference on the certificate to another instrument, indenture, or document or to a constitution, statute,
ordinance, rule, regulation, order, or the like, to the extent the
terms referred to do not conflict with terms stated on the certificate. A reference under this subsection does not of itself
charge a purchaser for value with notice of a defect going to
the validity of the security, even if the certificate expressly
states that a person accepting it admits notice. The terms of an
uncertificated security include those stated in any instrument,
indenture, or document or in a constitution, statute, ordinance, rule, regulation, order, or the like, pursuant to which
the security is issued.
(2) The following rules apply if an issuer asserts that a
security is not valid:
[Title 62A RCW—page 106]
(a) A security other than one issued by a government or
governmental subdivision, agency, or instrumentality, even
though issued with a defect going to its validity, is valid in the
hands of a purchaser for value and without notice of the particular defect unless the defect involves a violation of a constitutional provision. In that case, the security is valid in the
hands of a purchaser for value and without notice of the
defect, other than one who takes by original issue.
(b) Subsection (2)(a) of this section applies to an issuer
that is a government or governmental subdivision, agency, or
instrumentality only if there has been substantial compliance
with the legal requirements governing the issue or the issuer
has received a substantial consideration for the issue as a
whole or for the particular security and a stated purpose of the
issue is one for which the issuer has power to borrow money
or issue the security.
(3) Except as otherwise provided in RCW 62A.8-205,
lack of genuineness of a certificated security is a complete
defense, even against a purchaser for value and without
notice.
(4) All other defenses of the issuer of a security, including nondelivery and conditional delivery of a certificated
security, are ineffective against a purchaser for value who has
taken the certificated security without notice of the particular
defense.
(5) This section does not affect the right of a party to cancel a contract for a security "when, as and if issued" or "when
distributed" in the event of a material change in the character
of the security that is the subject of the contract or in the plan
or arrangement pursuant to which the security is to be issued
or distributed.
(6) If a security is held by a securities intermediary
against whom an entitlement holder has a security entitlement with respect to the security, the issuer may not assert
any defense that the issuer could not assert if the entitlement
holder held the security directly. [1995 c 48 § 18; 1986 c 35
§ 9; 1965 ex.s. c 157 § 8-202. Cf. former RCW sections:
RCW 62.01.016, 62.01.023, 62.01.028, 62.01.056,
62.01.057, and 62.01.060 through 62.01.062; 1955 c 35 §§
62.01.016, 62.01.023, 62.01.028, 62.01.056, 62.01.057, and
62.01.060 through 62.01.062; prior: 1899 c 149 §§ 16, 23,
28, 56, 57, and 60 through 62; RRS §§ 3407, 3414, 3419,
3447, 3448, and 3451 through 3453.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-203
62A.8-203 Staleness as notice of defect or defense.
After an act or event, other than a call that has been revoked,
creating a right to immediate performance of the principal
obligation represented by a certificated security or setting a
date on or after which the security is to be presented or surrendered for redemption or exchange, a purchaser is charged
with notice of any defect in its issue or defense of the issuer,
if the act or event:
(1) Requires the payment of money, the delivery of a certificated security, the registration of transfer of an uncertificated security, or any of them on presentation or surrender of
the security certificate, the money or security is available on
the date set for payment or exchange, and the purchaser takes
the security more than one year after that date; or
(2004 Ed.)
Investment Securities
(2) Is not covered by subsection (1) of this section and
the purchaser takes the security more than two years after the
date set for surrender or presentation or the date on which
performance became due. [1995 c 48 § 19; 1986 c 35 § 10;
1965 ex.s. c 157 § 8-203. Cf. former RCW sections: RCW
62.01.052(2) and 62.01.053; 1955 c 35 §§ 62.01.052 and
62.01.053; prior: 1899 c 149 §§ 52 and 53; RRS §§ 3443 and
3444.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-204
62A.8-204 Effect of issuer's restrictions on transfer.
A restriction on transfer of a security imposed by the issuer,
even if otherwise lawful, is ineffective against a person without knowledge of the restriction unless:
(1) The security is certificated and the restriction is noted
conspicuously on the security certificate; or
(2) The security is uncertificated and the registered
owner has been notified by the restriction. [1995 c 48 § 20;
1986 c 35 § 11; 1965 ex.s. c 157 § 8-204. Cf. former RCW
23.80.150; 1939 c 100 § 15; RRS § 3803-115; formerly RCW
23.20.160.]
Effective date—1995 c 48: See RCW 62A.11-113.
Corporations—Stock certificates—Limitations: RCW 23B.06.250.
62A.8-205
62A.8-205 Effect of unauthorized signature on security certificate. An unauthorized signature placed on a security certificate before or in the course of issue is ineffective,
but the signature is effective in favor of a purchaser for value
of the certificated security if the purchaser is without notice
of the lack of authority and the signing has been done by:
(1) An authenticating trustee, registrar, transfer agent, or
other person entrusted by the issuer with the signing of the
security certificate or of similar certificates, or the immediate
preparation for signing of any of them; or
(2) An employee of the issuer, or of any of the persons
listed in subsection (1) of this section, entrusted with responsible handling of the security certificate. [1995 c 48 § 21;
1986 c 35 § 12; 1965 ex.s. c 157 § 8-205. Cf. former RCW
62.01.023; 1955 c 35 § 62.01.023; prior: 1899 c 149 § 23;
RRS § 3414.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-210
62.01.124; prior: 1899 c 149 §§ 14, 15, and 124; RRS §§
3405, 3406, and 3514.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-207
62A.8-207 Rights and duties of issuer with respect to
registered owners. (1) Before due presentment for registration of transfer of a certificated security in registered form or
of an instruction requesting registration of transfer of an
uncertificated security, the issuer or indenture trustee may
treat the registered owner as the person exclusively entitled to
vote, receive notifications, and otherwise exercise all the
rights and powers of an owner.
(2) This Article does not affect the liability of the registered owner of a security for a call, assessment, or the like.
[1995 c 48 § 23; 1986 c 35 § 14; 1965 ex.s. c 157 § 8-207. Cf.
former RCW 23.80.020 and 23.80.030; 1939 c 100 §§ 2 and
3; RRS §§ 3803-102 and 3803-103; formerly RCW
23.20.030 and 23.20.040.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-208
62A.8-208 Effect of signature of authenticating
trustee, registrar, or transfer agent. (1) A person signing a
security certificate as authenticating trustee, registrar, transfer agent, or the like, warrants to a purchaser for value of the
certificated security, if the purchaser is without notice of a
particular defect, that:
(a) The certificate is genuine;
(b) The person's own participation in the issue of the
security is within the person's capacity and within the scope
of the authority received by the person from the issuer; and
(c) The person has reasonable grounds to believe that the
certificated security is in the form and within the amount the
issuer is authorized to issue.
(2) Unless otherwise agreed, a person signing under subsection (1) of this section does not assume responsibility for
the validity of the security in other respects. [1995 c 48 § 24;
1986 c 35 § 15; 1965 ex.s. c 157 § 8-208.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-209
62A.8-209 Issuer's lien. A lien in favor of an issuer
upon a certificated security is valid against a purchaser only
if the right of the issuer to the lien is noted conspicuously on
the security certificate. [1995 c 48 § 25.]
62A.8-206
62A.8-206 Completion or alteration of security certificate. (1) If a security certificate contains the signatures
necessary to its issue or transfer but is incomplete in any
other respect:
(a) Any person may complete it by filling in the blanks as
authorized; and
(b) Even though the blanks are incorrectly filled in, the
security certificate as completed is enforceable by a purchaser who took it for value and without notice of the incorrectness.
(2) A complete security certificate that has been improperly altered, even if fraudulently, remains enforceable, but
only according to its original terms. [1995 c 48 § 22; 1986 c
35 § 13; 1965 ex.s. c 157 § 8-206. Cf. former RCW sections:
(i) RCW 23.80.160; 1939 c 100 § 16; RRS § 3803-116; formerly RCW 23.20.170. (ii) RCW 62.01.014, 62.01.015, and
62.01.124; 1955 c 35 §§ 62.01.014, 62.01.015, and
(2004 Ed.)
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-210
62A.8-210 Overissue. (1) In this section, "overissue"
means the issue of securities in excess of the amount the
issuer has corporate power to issue, but an overissue does not
occur if appropriate action has cured the overissue.
(2) Except as otherwise provided in subsections (3) and
(4) of this section, the provisions of this Article which validate a security or compel its issue or reissue do not apply to
the extent that validation, issue, or reissue would result in
overissue.
(3) If an identical security not constituting an overissue
is reasonably available for purchase, a person entitled to issue
or validation may compel the issuer to purchase the security
and deliver it if certificated or register its transfer if uncertificated, against surrender of any security certificate the person
holds.
[Title 62A RCW—page 107]
62A.8-301
Title 62A RCW: Uniform Commercial Code
(4) If a security is not reasonably available for purchase,
a person entitled to issue or validation may recover from the
issuer the price the person or the last purchaser for value paid
for it with interest from the date of the person's demand.
[1995 c 48 § 26.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-301
62A.8-301 Delivery. (1) Delivery of a certificated security to a purchaser occurs when:
(a) The purchaser acquires possession of the security certificate;
(b) Another person, other than a securities intermediary,
either acquires possession of the security certificate on behalf
of the purchaser or, having previously acquired possession of
the certificate, acknowledges that it holds for the purchaser;
or
(c) A securities intermediary acting on behalf of the purchaser acquires possession of the security certificate, only if
the certificate is in registered form and is (i) registered in the
name of the purchaser, (ii) payable to the order of the purchaser, or (iii) specially indorsed to the purchaser by an effective indorsement and has not been indorsed to the securities
intermediary or in blank.
(2) Delivery of an uncertificated security to a purchaser
occurs when:
(a) The issuer registers the purchaser as the registered
owner, upon original issue or registration of transfer; or
(b) Another person, other than a securities intermediary,
either becomes the registered owner of the uncertificated
security on behalf of the purchaser or, having previously
become the registered owner, acknowledges that it holds for
the purchaser. [2000 c 250 § 9A-818; 1995 c 48 § 27; 1986 c
35 § 16; 1965 ex.s. c 157 § 8-301. Cf. former RCW sections:
(i) RCW 23.80.070; 1939 c 100 § 7; RRS § 3803-107; formerly RCW 23.20.080. (ii) RCW 62.01.052; 1955 c 35 §
62.01.052; prior: 1899 c 149 § 52; RRS § 3443. (iii) RCW
62.01.057 through 62.01.059; 1955 c 35 §§ 62.01.057
through 62.01.059; prior: 1899 c 149 §§ 57 through 59; RRS
§§ 3448 through 3450.]
Effective date—2000 c 250: See RCW 62A.9A-701.
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-302
62A.8-302 Rights of purchaser. (1) Except as otherwise provided in subsections (2) and (3) of this section, a purchaser of a certificated or uncertificated security acquires all
rights in the security that the transferor had or had power to
transfer.
(2) A purchaser of a limited interest acquires rights only
to the extent of the interest purchased.
(3) A purchaser of a certificated security who as a previous holder had notice of an adverse claim does not improve
its position by taking from a protected purchaser. [2000 c
250 § 9A-819; 1995 c 48 § 28; 1986 c 35 § 17; 1965 ex.s. c
157 § 8-3 02. Cf. f orm er RCW sections: (i) RCW
23.80.230(2); 1939 c 100 § 23; RRS § 3803-123. (ii) RCW
62.01.052; 1955 c 35 § 62.01.052; prior: 1899 c 149 § 52;
RRS § 3443.]
Effective date—2000 c 250: See RCW 62A.9A-701.
Effective date—1995 c 48: See RCW 62A.11-113.
[Title 62A RCW—page 108]
62A.8-303
62A.8-303 Protected purchaser. (1) "Protected purchaser" means a purchaser of a certificated or uncertificated
security, or of an interest therein, who:
(a) Gives value;
(b) Does not have notice of any adverse claim to the
security; and
(c) Obtains control of the certificated or uncertificated
security.
(2) In addition to acquiring the rights of a purchaser, a
protected purchaser also acquires its interest in the security
free of any adverse claim. [1995 c 48 § 29; 1986 c 35 § 18;
1965 ex.s. c 157 § 8-303.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-304
62A.8-304 Indorsement. (1) An indorsement may be
in blank or special. An indorsement in blank includes an
indorsement to bearer. A special indorsement specifies to
whom a security is to be transferred or who has power to
transfer it. A holder may convert a blank indorsement to a
special indorsement.
(2) An indorsement purporting to be only of part of a
security certificate representing units intended by the issuer
to be separately transferable is effective to the extent of the
indorsement.
(3) An indorsement, whether special or in blank, does
not constitute a transfer until delivery of the certificate on
which it appears or, if the indorsement is on a separate document, until delivery of both the document and the certificate.
(4) If a security certificate in registered form has been
delivered to a purchaser without a necessary indorsement, the
purchaser may become a protected purchaser only when the
indorsement is supplied. However, against a transferor, a
transfer is complete upon delivery and the purchaser has a
specifically enforceable right to have any necessary indorsement supplied.
(5) An indorsement of a security certificate in bearer
form may give notice of an adverse claim to the certificate,
but it does not otherwise affect a right to registration that the
holder possesses.
(6) Unless otherwise agreed, a person making an
indorsement assumes only the obligations provided in RCW
62A.8-108 and not an obligation that the security will be honored by the issuer. [1995 c 48 § 30; 1986 c 35 § 19; 1965
ex.s. c 157 § 8-304. Cf. former RCW sections: RCW
62.01.037 and 62.01.056; 1955 c 35 §§ 62.01.037 and
62.01.056; prior: 1899 c 149 §§ 37 and 56; RRS §§ 3428 and
3447.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-305
62A.8-305 Instruction. (1) If an instruction has been
originated by an appropriate person but is incomplete in any
other respect, any person may complete it as authorized and
the issuer may rely on it as completed, even though it has
been completed incorrectly.
(2) Unless otherwise agreed, a person initiating an
instruction assumes only the obligations imposed by RCW
62A.8-108 and not an obligation that the security will be honored by the issuer. [1995 c 48 § 31; 1986 c 35 § 20; 1965
ex.s. c 157 § 8-305. Cf. former RCW sections: RCW
62.01.052(2) and 62.01.053; 1955 c 35 §§ 62.01.052 and
(2004 Ed.)
Investment Securities
62.01.053; prior: 1899 c 149 §§ 52 and 53; RRS §§ 3443 and
3444.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-306
62A.8-306 Effect of guaranteeing signature, indorsement, or instruction. (1) A person who guarantees a signature of an indorser of a security certificate warrants that at the
time of signing:
(a) The signature was genuine;
(b) The signer was an appropriate person to indorse, or if
the signature is by an agent, the agent had actual authority to
act on behalf of the appropriate person; and
(c) The signer had legal capacity to sign.
(2) A person who guarantees a signature of the originator
of an instruction warrants that at the time of signing:
(a) The signature was genuine;
(b) The signer was an appropriate person to originate the
instruction, or if the signature is by an agent, the agent had
actual authority to act on behalf of the appropriate person, if
the person specified in the instruction as the registered owner
was, in fact, the registered owner, as to which fact the signature guarantor does not make a warranty; and
(c) The signer had legal capacity to sign.
(3) A person who specially guarantees the signature of
an originator of an instruction makes the warranties of a signature guarantor under subsection (2) of this section and also
warrants that at the time the instruction is presented to the
issuer:
(a) The person specified in the instruction as the registered owner of the uncertificated security will be the registered owner; and
(b) The transfer of the uncertificated security requested
in the instruction will be registered by the issuer free from all
liens, security interests, restrictions, and claims other than
those specified in the instruction.
(4) A guarantor under subsections (1) and (2) of this section or a special guarantor under subsection (3) of this section
does not otherwise warrant the rightfulness of the transfer.
(5) A person who guarantees an indorsement of a security certificate makes the warranties of a signature guarantor
under subsection (1) of this section and also warrants the
rightfulness of the transfer in all respects.
(6) A person who guarantees an instruction requesting
the transfer of an uncertificated security makes the warranties
of a special signature guarantor under subsection (3) of this
section and also warrants the rightfulness of the transfer in all
respects.
(7) An issuer may not require a special guaranty of signature, a guaranty of indorsement, or a guaranty of instruction as a condition to registration of transfer.
(8) The warranties under this section are made to a person taking or dealing with the security in reliance on the guaranty, and the guarantor is liable to the person for loss resulting from their breach. An indorser or originator of an instruction whose signature, indorsement, or instruction has been
guaranteed is liable to a guarantor for any loss suffered by the
guarantor as a result of breach of the warranties of the guarantor. [1995 c 48 § 32; 1986 c 35 § 21; 1965 ex.s. c 157 § 8306. Cf. former RCW sections: (i) RCW 23.80.110 and
23.80.120; 1939 c 100 §§ 11 and 12; RRS §§ 3803-111 and
(2004 Ed.)
62A.8-402
3803-112; formerly RCW 23.20.120 and 23.20.130. (ii)
RCW 62.01.065 through 62.01.067, and 62.01.069; 1955 c
35 §§ 62.01.065 through 62.01.067, and 62.01.069; prior:
1899 c 149 §§ 65 through 67, and 69; RRS §§ 3456 through
3458, and 3460.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-307
62A.8-307 Purchaser's right to requisites for registration of transfer. Unless otherwise agreed, the transferor
of a security on due demand shall supply the purchaser with
proof of authority to transfer or with any other requisite necessary to obtain registration of the transfer of the security, but
if the transfer is not for value, a transferor need not comply
unless the purchaser pays the necessary expenses. If the
transferor fails within a reasonable time to comply with the
demand, the purchaser may reject or rescind the transfer.
[1995 c 48 § 33; 1986 c 35 § 22; 1965 ex.s. c 157 § 8-307. Cf.
former RCW sections: (i) RCW 23.80.090; 1939 c 100 § 9;
RRS § 3803-109; formerly RCW 23.20.100. (ii) RCW
62.01.049; 1955 c 35 § 62.01.049; prior: 1899 c 149 § 49;
RRS § 3440.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-401
62A.8-401 Duty of issuer to register transfer. (1) If a
certificated security in registered form is presented to the
issuer with a request to register transfer or an instruction is
presented to the issuer with a request to register transfer of an
uncertificated security, the issuer shall register the transfer as
requested if:
(a) Under the terms of the security the person seeking
registration of transfer is eligible to have the security registered in its name;
(b) The indorsement or instruction is made by the appropriate person or by an agent who has actual authority to act on
behalf of the appropriate person;
(c) Reasonable assurance is given that the indorsement
or instruction is genuine and authorized (RCW 62A.8-402);
(d) Any applicable law relating to the collection of taxes
has been complied with;
(e) The transfer does not violate any restriction on transfer imposed by the issuer in accordance with RCW
62A.8-204;
(f) A demand that the issuer not register transfer has not
become effective under RCW 62A.8-403, or the issuer has
complied with RCW 62A.8-403(2) but no legal process or
indemnity bond is obtained as provided in RCW 62A.8403(4); and
(g) The transfer is in fact rightful or is to a protected purchaser.
(2) If an issuer is under a duty to register a transfer of a
security, the issuer is liable to a person presenting a certificated security or an instruction for registration or to the person's principal for loss resulting from unreasonable delay in
registration or failure or refusal to register the transfer. [1995
c 48 § 34; 1986 c 35 § 37; 1965 ex.s. c 157 § 8-401.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-402
62A.8-402 Assurance that indorsement or instruction is effective. (1) An issuer may require the following
[Title 62A RCW—page 109]
62A.8-403
Title 62A RCW: Uniform Commercial Code
assurance that each necessary indorsement or each instruction is genuine and authorized:
(a) In all cases, a guaranty of the signature of the person
making an indorsement or originating an instruction including, in the case of an instruction, reasonable assurance of
identity;
(b) If the indorsement is made or the instruction is originated by an agent, appropriate assurance of actual authority
to sign;
(c) If the indorsement is made or the instruction is originated by a fiduciary pursuant to RCW 62A.8-107(1) (d) or
(e), appropriate evidence of appointment or incumbency;
(d) If there is more than one fiduciary, reasonable assurance that all who are required to sign have done so; and
(e) If the indorsement is made or the instruction is originated by a person not covered by another provision of this
subsection, assurance appropriate to the case corresponding
as nearly as may be to the provisions of this subsection.
(2) An issuer may elect to require reasonable assurance
beyond that specified in this section.
(3) In this section:
(a) "Guaranty of the signature" means a guaranty signed
by or on behalf of a person reasonably believed by the issuer
to be responsible. An issuer may adopt standards with respect
to responsibility if they are not manifestly unreasonable.
(b) "Appropriate evidence of appointment or incumbency" [means]:
(i) In the case of a fiduciary appointed or qualified by a
court, a certificate issued by or under the direction or supervision of the court or an officer thereof and dated within sixty
days before the date of presentation for transfer; or
(ii) In any other case, a copy of a document showing the
appointment or a certificate issued by or on behalf of a person
reasonably believed by an issuer to be responsible or, in the
absence of that document or certificate, other evidence the
issuer reasonably considered appropriate. [1995 c 48 § 35;
1986 c 35 § 38; 1965 ex.s. c 157 § 8-402.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-403
62A.8-403 Demand that issuer not register transfer.
(1) A person who is an appropriate person to make an
indorsement or originate an instruction may demand that the
issuer not register transfer of a security by communicating to
the issuer a notification that identifies the registered owner
and the issue of which the security is a part and provides an
address for communications directed to the person making
the demand. The demand is effective only if it is received by
the issuer at a time and in a manner affording the issuer reasonable opportunity to act on it.
(2) If a certificated security in registered form is presented to an issuer with a request to register transfer or an
instruction is presented to an issuer with a request to register
transfer of an uncertificated security after a demand that the
issuer not register transfer has become effective, the issuer
shall promptly communicate to (a) the person who initiated
the demand at the address provided in the demand and (b) the
person who presented the security for registration of transfer
or initiated the instruction requesting registration of transfer a
notification stating that:
[Title 62A RCW—page 110]
(i) The certificated security has been presented for registration of transfer or instruction for registration of transfer of
uncertificated security has been received;
(ii) A demand that the issuer not register transfer had
previously been received; and
(iii) The issuer will withhold registration of transfer for a
period of time stated in the notification in order to provide the
person who initiated the demand an opportunity to obtain
legal process or an indemnity bond.
(3) The period described in subsection (2)(b)(iii) of this
section may not exceed thirty days after the date of communication of the notification. A shorter period may be specified
by the issuer if it is not manifestly unreasonable.
(4) An issuer is not liable to a person who initiated a
demand that the issuer not register transfer for any loss the
person suffers as a result of registration of a transfer pursuant
to an effective indorsement or instruction if the person who
initiated the demand does not, within the time stated in the
issuer's communication, either:
(a) Obtain an appropriate restraining order, injunction, or
other process from a court of competent jurisdiction enjoining the issuer from registering the transfer; or
(b) File with the issuer an indemnity bond, sufficient in
the issuer's judgment to protect the issuer and any transfer
agent, registrar, or other agent of the issuer involved from any
loss it or they may suffer by refusing to register the transfer.
(5) This section does not relieve an issuer from liability
for registering transfer pursuant to an indorsement or instruction that was not effective. [1995 c 48 § 36; 1986 c 35 § 39;
1965 ex.s. c 157 § 8-403.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-404
62A.8-404 Wrongful registration. (1) Except as otherwise provided in RCW 62A.8-406, an issuer is liable for
wrongful registration of transfer if the issuer has registered a
transfer of a security to a person not entitled to it, and the
transfer was registered:
(a) Pursuant to an ineffective indorsement or instruction;
(b) After a demand that the issuer not register transfer
became effective under RCW 62A.8-403(1) and the issuer
did not comply with RCW 62A.8-403(2);
(c) After the issuer had been served with an injunction,
restraining order, or other legal process enjoining it from registering the transfer, issued by a court of competent jurisdiction, and the issuer had a reasonable opportunity to act on the
injunction, restraining order, or other legal process; or
(d) By an issuer acting in collusion with the wrongdoer.
(2) An issuer that is liable for wrongful registration of
transfer under subsection (1) of this section on demand shall
provide the person entitled to the security with a like certificated or uncertificated security, and any payments or distributions that the person did not receive as a result of the
wrongful registration. If an overissue would result, the
issuer's liability to provide the person with a like security is
governed by RCW 62A.8-210.
(3) Except as otherwise provided in subsection (1) of this
section or in a law relating to the collection of taxes, an issuer
is not liable to an owner or other person suffering loss as a
result of the registration of a transfer of a security if registration was made pursuant to an effective indorsement or
(2004 Ed.)
Investment Securities
instruction. [1995 c 48 § 37; 1986 c 35 § 40; 1965 ex.s. c 157
§ 8-404.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-405
62A.8-405 Replacement of lost, destroyed, or wrongfully taken security certificate. (1) If an owner of a certificated security, whether in registered or bearer form, claims
that the certificate has been lost, destroyed, or wrongfully
taken, the issuer shall issue a new certificate if the owner:
(a) So requests before the issuer has notice that the certificate has been acquired by a protected purchaser;
(b) Files with the issuer a sufficient indemnity bond; and
(c) Satisfies any other reasonable requirements imposed
by the issuer.
(2) If, after the issue of a new security certificate, a protected purchaser of the original certificate presents it for registration of transfer, the issuer shall register the transfer
unless an overissue would result. In that case, the issuer's liability is governed by RCW 62A.8-209. In addition to any
rights on the indemnity bond, an issuer may recover the new
certificate from the person to whom it was issued or any person taking under that person, except a protected purchaser.
[1995 c 48 § 38; 1986 c 35 § 41; 1965 ex.s. c 157 § 8-405. Cf.
former RCW 23.80.170; 1939 c 100 § 17; RRS § 3803-117;
formerly RCW 23.20.180.]
62A.8-503
(2) Except as otherwise provided in subsections (4) and
(5) of this section, a person acquires a security entitlement if
a securities intermediary:
(a) Indicates by book entry that a financial asset has been
credited to the person's securities account;
(b) Receives a financial asset from the person or acquires
a financial asset for the person and, in either case, accepts it
for credit to the person's securities account; or
(c) Becomes obligated under other law, regulation, or
rule to credit a financial asset to the person's securities
account.
(3) If a condition of subsection (2) of this section has
been met, a person has a security entitlement even though the
securities intermediary does not itself hold the financial asset.
(4) If a securities intermediary holds a financial asset for
another person, and the financial asset is registered in the
name of, payable to the order of, or specially indorsed to the
other person, and has not been indorsed to the securities intermediary or in blank, the other person is treated as holding the
financial asset directly rather than as having a security entitlement with respect to the financial asset.
(5) Issuance of a security is not establishment of a security entitlement. [1995 c 48 § 41.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-502
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-406
62A.8-406 Obligation to notify issuer of lost,
destroyed, or wrongfully taken security certificate. If a
security certificate has been lost, apparently destroyed, or
wrongfully taken, and the owner fails to notify the issuer of
that fact within a reasonable time after the owner has notice
of it and the issuer registers a transfer of the security before
receiving notification, the owner may not assert against the
issuer a claim for registering the transfer under RCW 62A.8404 or a claim to a new security certificate under RCW
62A.8-405. [1995 c 48 § 39; 1986 c 35 § 42; 1965 ex.s. c 157
§ 8-406.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-407
62A.8-407 Authenticating trustee, transfer agent,
and registrar. A person acting as authenticating trustee,
transfer agent, registrar, or other agent for an issuer in the
registration of a transfer of its securities, in the issue of new
security certificates or uncertificated securities, or in the cancellation of surrendered security certificates has the same
obligation to the holder or owner of a certificated or uncertificated security with regard to the particular functions performed as the issuer has in regard to those functions. [1995 c
48 § 40; 1986 c 35 § 43.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-501
62A.8-501 Securities account; acquisition of security
entitlement from securities intermediary. (1) "Securities
account" means an account to which a financial asset is or
may be credited in accordance with an agreement under
which the person maintaining the account undertakes to treat
the person for whom the account is maintained as entitled to
exercise the rights that comprise the financial asset.
(2004 Ed.)
62A.8-502 Assertion of adverse claim against entitlement holder. An action based on an adverse claim to a
financial asset, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be
asserted against a person who acquires a security entitlement
under RCW 62A.8-501 for value and without notice of the
adverse claim. [1995 c 48 § 42.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-503
62A.8-503 Property interest of entitlement holder in
financial asset held by securities intermediary. (1) To the
extent necessary for a securities intermediary to satisfy all
security entitlements with respect to a particular financial
asset, all interests in that financial asset held by the securities
intermediary are held by the securities intermediary for the
entitlement holders, are not property of the securities intermediary, and are not subject to claims of creditors of the
securities intermediary, except as otherwise provided in
RCW 62A.8-511.
(2) An entitlement holder's property interest with respect
to a particular financial asset under subsection (1) of this section is a pro rata property interest in all interests in that financial asset held by the securities intermediary, without regard
to the time the entitlement holder acquired the security entitlement or the time the securities intermediary acquired the
interest in that financial asset.
(3) An entitlement holder's property interest with respect
to a particular financial asset under subsection (1) of this section may be enforced against the securities intermediary only
by exercise of the entitlement holder's rights under RCW
62A.8-505 through 62A.8-508.
(4) An entitlement holder's property interest with respect
to a particular financial asset under subsection (1) of this section may be enforced against a purchaser of the financial
asset or interest therein only if:
[Title 62A RCW—page 111]
62A.8-504
Title 62A RCW: Uniform Commercial Code
(a) Insolvency proceedings have been initiated by or
against the securities intermediary;
(b) The securities intermediary does not have sufficient
interests in the financial asset to satisfy the security entitlements of all of its entitlement holders to that financial asset;
(c) The securities intermediary violated its obligations
under RCW 62A.8-504 by transferring the financial asset or
interest therein to the purchaser; and
(d) The purchaser is not protected under subsection (5)
of this section.
The trustee or other liquidator, acting on behalf of all entitlement holders having security entitlements with respect to a
particular financial asset, may recover the financial asset, or
interest therein, from the purchaser. If the trustee or other liquidator elects not to pursue that right, an entitlement holder
whose security entitlement remains unsatisfied has the right
to recover its interest in the financial asset from the purchaser.
(5) An action based on the entitlement holder's property
interest with respect to a particular financial asset under subsection (1) of this section, whether framed in conversion,
replevin, constructive trust, equitable lien, or other theory,
may not be asserted against any purchaser of a financial asset
or interest therein who gives value, obtains control, and does
not act in collusion with the securities intermediary in violating the securities intermediary's obligations under RCW
62A.8-504. [1995 c 48 § 43.]
(a) The securities intermediary acts with respect to the
duty as agreed upon by the entitlement holder and the securities intermediary; or
(b) In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to attempt to obtain the payment or distribution.
(2) A securities intermediary is obligated to its entitlement holder for a payment or distribution made by the issuer
of a financial asset if the payment or distribution is received
by the securities intermediary. [1995 c 48 § 45.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-506
62A.8-506 Duty of securities intermediary to exercise
rights as directed by entitlement holder. A securities intermediary shall exercise rights with respect to a financial asset
if directed to do so by an entitlement holder. A securities
intermediary satisfies the duty if:
(1) The securities intermediary acts with respect to the
duty as agreed upon by the entitlement holder and the securities intermediary; or
(2) In the absence of agreement, the securities intermediary either places the entitlement holder in a position to exercise the rights directly or exercises due care in accordance
with reasonable commercial standards to follow the direction
of the entitlement holder. [1995 c 48 § 46.]
Effective date—1995 c 48: See RCW 62A.11-113.
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-507
62A.8-504
62A.8-504 Duty of securities intermediary to maintain financial asset. (1) A securities intermediary shall
promptly obtain and thereafter maintain a financial asset in a
quantity corresponding to the aggregate of all security entitlements it has established in favor of its entitlement holders
with respect to that financial asset. The securities intermediary may maintain those financial assets directly or through
one or more other securities intermediaries.
(2) Except to the extent otherwise agreed by its entitlement holder, a securities intermediary may not grant any
security interests in a financial asset it is obligated to maintain pursuant to subsection (1) of this section.
(3) A securities intermediary satisfies the duty in subsection (1) of this section if:
(a) The securities intermediary acts with respect to the
duty as agreed upon by the entitlement holder and the securities intermediary; or
(b) In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to obtain and maintain the financial asset.
(4) This section does not apply to a clearing corporation
that is itself the obligor of an option or similar obligation to
which its entitlement holders have security entitlements.
[1995 c 48 § 44.]
62A.8-507 Duty of securities intermediary to comply
with entitlement order. (1) A securities intermediary shall
comply with an entitlement order if the entitlement order is
originated by the appropriate person, the securities intermediary has had reasonable opportunity to assure itself that the
entitlement order is genuine and authorized, and the securities intermediary has had reasonable opportunity to comply
with the entitlement order. A securities intermediary satisfies
the duty if:
(a) The securities intermediary acts with respect to the
duty as agreed upon by the entitlement holder and the securities intermediary; or
(b) In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to comply with the entitlement order.
(2) If a securities intermediary transfers a financial asset
pursuant to an ineffective entitlement order, the securities
intermediary shall reestablish a security entitlement in favor
of the person entitled to it, and pay or credit any payments or
distributions that the person did not receive as a result of the
wrongful transfer. If the securities intermediary does not
reestablish a security entitlement, the securities intermediary
is liable to the entitlement holder for damages. [1995 c 48 §
47.]
Effective date—1995 c 48: See RCW 62A.11-113.
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-508
62A.8-505
62A.8-505 Duty of securities intermediary with
respect to payments and distributions. (1) A securities
intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset. A securities intermediary satisfies the duty if:
[Title 62A RCW—page 112]
62A.8-508 Duty of securities intermediary to change
entitlement holder's position to other form of security
holding. A securities intermediary shall act at the direction
of an entitlement holder to change a security entitlement into
another available form of holding for which the entitlement
holder is eligible, or to cause the financial asset to be trans(2004 Ed.)
Investment Securities
ferred to a securities account of the entitlement holder with
another securities intermediary. A securities intermediary
satisfies the duty if:
(1) The securities intermediary acts as agreed upon by
the entitlement holder and the securities intermediary; or
(2) In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement
holder. [1995 c 48 § 48.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-509
62A.8-509 Specification of duties of securities intermediary by other statute or regulation; manner of performance of duties of securities intermediary and exercise of
rights of entitlement holder. (1) If the substance of a duty
imposed upon a securities intermediary by RCW 62A.8-504
through 62A.8-508 is the subject of other statute, regulation,
or rule, compliance with that statute, regulation, or rule satisfies the duty.
(2) To the extent that specific standards for the performance of the duties of a securities intermediary or the exercise of the rights of an entitlement holder are not specified by
other statute, regulation, or rule or by agreement between the
securities intermediary and entitlement holder, the securities
intermediary shall perform its duties and the entitlement
holder shall exercise its rights in a commercially reasonable
manner.
(3) The obligation of a securities intermediary to perform
the duties imposed by RCW 62A.8-504 through 62A.8-508 is
subject to:
(a) Rights of the securities intermediary arising out of a
security interest under a security agreement with the entitlement holder or otherwise; and
(b) Rights of the securities intermediary under other law,
regulation, rule, or agreement to withhold performance of its
duties as a result of unfulfilled obligations of the entitlement
holder to the securities intermediary.
(4) RCW 62A.8-504 through 62A.8-508 do not require a
securities intermediary to take any action that is prohibited by
other statute, regulation, or rule. [1995 c 48 § 49.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-510
62A.8-510 Rights of purchaser of security entitlement from entitlement holder. (1) In a case not covered by
the priority rules in Article 9A or the rules stated in subsection (3) of this section, an action based on an adverse claim to
a financial asset or security entitlement, whether framed in
conversion, replevin, constructive trust, equitable lien, or
other theory, may not be asserted against a person who purchases a security entitlement, or an interest therein, from an
entitlement holder if the purchaser gives value, does not have
notice of the adverse claim, and obtains control.
(2) If an adverse claim could not have been asserted
against an entitlement holder under RCW 62A.8-502, the
adverse claim cannot be asserted against a person who purchases a security entitlement, or an interest therein, from the
entitlement holder.
(3) In a case not covered by the priority rules in Article
9A, a purchaser for value of a security entitlement, or an
interest therein, who obtains control has priority over a pur(2004 Ed.)
62A.8-601
chaser of a security entitlement, or an interest therein, who
does not obtain control. Except as otherwise provided in subsection (4) of this section, purchasers who have control rank
according to priority in time of:
(a) The purchaser's becoming the person for whom the
securities account, in which the security entitlement is carried, is maintained, if the purchaser obtained control under
RCW 62A.8-106(4)(a);
(b) The securities intermediary's agreement to comply
with the purchaser's entitlement orders with respect to security entitlements carried or to be carried in the securities
account in which the security entitlement is carried, if the
purchaser obtained control under RCW 62A.8-106(4)(b); or
(c) If the purchaser obtained control through another person under RCW 62A.8-106(4)(c), the time on which priority
would be based under this subsection if the other person were
the secured party.
(4) A securities intermediary as purchaser has priority
over a conflicting purchaser who has control unless otherwise
agreed by the securities intermediary. [2001 c 32 § 15; 2000
c 250 § 9A-820; 1995 c 48 § 50.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
Effective date—2000 c 250: See RCW 62A.9A-701.
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-511
62A.8-511 Priority among security interests and entitlement holders. (1) Except as otherwise provided in subsections (2) and (3) of this section, if a securities intermediary
does not have sufficient interests in a particular financial
asset to satisfy both its obligations to entitlement holders who
have security entitlements to that financial asset and its obligation to a creditor of the securities intermediary who has a
security interest in that financial asset, the claims of entitlement holders, other than the creditor, have priority over the
claim of the creditor.
(2) A claim of a creditor of a securities intermediary who
has a security interest in a financial asset held by a securities
intermediary has priority over claims of the securities intermediary's entitlement holders who have security entitlements
with respect to that financial asset if the creditor has control
over the financial asset.
(3) If a clearing corporation does not have sufficient
financial assets to satisfy both its obligations to entitlement
holders who have security entitlements with respect to a
financial asset and its obligation to a creditor of the clearing
corporation who has a security interest in that financial asset,
the claim of the creditor has priority over the claims of entitlement holders. [1995 c 48 § 51.]
Effective date—1995 c 48: See RCW 62A.11-113.
62A.8-601
62A.8-601 Savings clause. (1) Chapter 48, Laws of
1995 does not affect an action or proceeding commenced
before April 17, 1995.
(2) If a security interest in a security is perfected by April
17, 1995, and the action by which the security interest was
perfected would suffice to perfect a security interest under
chapter 48, Laws of 1995, no further action is required to
continue perfection. If a security interest in a security is perfected by April 17, 1995, but the action by which the security
interest was perfected would not suffice to perfect a security
[Title 62A RCW—page 113]
Article 9A
Title 62A RCW: Uniform Commercial Code
interest under chapter 48, Laws of 1995, the security interest
remains perfected through December 31, 1995, and continues
perfected thereafter if appropriate action to perfect under
chapter 48, Laws of 1995 is taken by that date. If a security
interest is perfected by April 17, 1995, and the security interest can be perfected by filing under chapter 48, Laws of 1995,
a financing statement signed by the secured party instead of
the debtor may be filed within that period to continue perfection or thereafter to perfect. [1995 c 48 § 53.]
62A.9A-313
62A.9A-314
62A.9A-315
62A.9A-316
62A.9A-317
62A.9A-318
Effective date—1995 c 48: See RCW 62A.11-113.
62A.9A-319
Article 9A
SECURED TRANSACTIONS; SALES OF ACCOUNTS,
CONTRACT RIGHTS AND CHATTEL PAPER
62A.9A-320
62A.9A-321
Sections
62A.9A-323
62A.9A-324
62A.9A-325
62A.9A-326
62A.9A-327
62A.9A-328
62A.9A-329
62A.9A-330
62A.9A-331
Article 9A
PART 1
GENERAL PROVISIONS
62A.9A-101
62A.9A-102
62A.9A-103
62A.9A-104
62A.9A-105
62A.9A-106
62A.9A-107
62A.9A-108
62A.9A-109
62A.9A-110
Short title.
Definitions and index of definitions.
Purchase-money security interest; application of payments;
burden of establishing.
Control of deposit account.
Control of electronic chattel paper.
Control of investment property.
Control of letter-of-credit right.
Sufficiency of description in security agreement.
Scope.
Security interests arising under Article 2 or 2A.
PART 2
EFFECTIVENESS OF SECURITY AGREEMENT;
ATTACHMENT OF SECURITY INTEREST;
RIGHTS OF PARTIES TO SECURITY AGREEMENT
62A.9A-201
62A.9A-202
62A.9A-203
62A.9A-204
62A.9A-205
62A.9A-206
62A.9A-207
62A.9A-208
62A.9A-209
62A.9A-210
General effectiveness of security agreement.
Title to collateral immaterial.
Attachment and enforceability of security interest; proceeds;
supporting obligations; formal requisites.
After-acquired property; future advances.
Use or disposition of collateral permissible.
Security interest arising in purchase or delivery of financial
asset.
Rights and duties of secured party having possession or control of collateral.
Additional duties of secured party having control of collateral.
Duties of secured party if account debtor has been notified of
assignment.
Request for accounting; request regarding list of collateral or
statement of account.
PART 3
PERFECTION AND PRIORITY
62A.9A-301
62A.9A-302
62A.9A-303
62A.9A-304
62A.9A-305
62A.9A-306
62A.9A-307
62A.9A-308
62A.9A-309
62A.9A-310
62A.9A-311
62A.9A-312
Law governing perfection and priority of security interests.
Law governing perfection and priority of agricultural liens.
Law governing perfection and priority of security interests in
goods covered by a certificate of title.
Law governing perfection and priority of security interests in
deposit accounts.
Law governing perfection and priority of security interests in
investment property.
Law governing perfection and priority of security interests in
letter-of-credit rights.
Location of debtor.
When security interest or agricultural lien is perfected; continuity of perfection.
Security interest perfected upon attachment.
When filing required to perfect security interest or agricultural lien; security interests and agricultural liens to which
filing provisions do not apply.
Perfection of security interests in property subject to certain
statutes, regulations, and treaties.
Perfection of security interests in chattel paper, deposit
accounts, documents, goods covered by documents,
instruments, investment property, letter-of-credit rights,
[Title 62A RCW—page 114]
62A.9A-322
62A.9A-332
62A.9A-333
62A.9A-334
62A.9A-335
62A.9A-336
62A.9A-337
62A.9A-338
62A.9A-339
62A.9A-340
62A.9A-341
62A.9A-342
and money; perfection by permissive filing; temporary
perfection without filing or transfer of possession.
When possession by or delivery to secured party perfects
security interest without filing.
Perfection by control.
Secured party's rights on disposition of collateral and in proceeds.
Continued perfection of security interest following change in
governing law.
Interests that take priority over or take free of security interest or agricultural lien.
No interest retained in right to payment that is sold; rights and
title of seller of account or chattel paper with respect to
creditors and purchasers.
Rights and title of consignee with respect to creditors and
purchasers.
Buyer of goods.
Licensee of general intangible and lessee of goods in ordinary course of business.
Priorities among conflicting security interests in and agricultural liens on same collateral.
Future advances.
Priority of purchase-money security interests.
Priority of security interests in transferred collateral.
Priority of security interests created by new debtor.
Priority of security interests in deposit account.
Priority of security interests in investment property.
Priority of security interests in letter-of-credit right.
Priority of purchaser of chattel paper or instrument.
Priority of rights of purchasers of instruments, documents,
and securities under other articles; priority of interests in
financial assets and security entitlements under Article 8.
Transfer of money; transfer of funds from deposit account.
Priority of certain liens arising by operation of law.
Priority of security interests in fixtures and crops.
Accessions.
Commingled goods.
Priority of security interests in goods covered by certificate
of title.
Priority of security interest or agricultural lien perfected by
filed financing statement providing certain incorrect information.
Priority subject to subordination.
Effectiveness of right of recoupment or set-off against
deposit account.
Bank's rights and duties with respect to deposit account.
Bank's right to refuse to enter into or disclose existence of
control agreement.
PART 4
RIGHTS OF THIRD PARTIES
62A.9A-401
62A.9A-402
62A.9A-403
62A.9A-404
62A.9A-405
62A.9A-406
62A.9A-407
62A.9A-408
62A.9A-409
Alienability of debtor's rights.
Secured party not obligated on contract of debtor or in tort.
Agreement not to assert defenses against assignee.
Rights acquired by assignee; claims and defenses against
assignee.
Modification of assigned contract.
Discharge of account debtor; notification of assignment;
identification and proof of assignment; restrictions on
assignment of accounts, chattel paper, payment intangibles, and promissory notes ineffective.
Restrictions on creation or enforcement of security interest in
leasehold interest or in lessor's residual interest.
Restrictions on assignment of promissory notes, health-careinsurance receivables, and certain general intangibles ineffective.
Restrictions on assignment of letter-of-credit rights ineffective.
PART 5
FILING
62A.9A-501
62A.9A-502
62A.9A-503
62A.9A-504
62A.9A-505
62A.9A-506
62A.9A-507
Filing office.
Contents of financing statement; record of mortgage as
financing statement; time of filing financing statement.
Name of debtor and secured party.
Indication of collateral.
Filing and compliance with other statutes and treaties for
consignments, leases, other bailments, and other transactions.
Effect of errors or omissions.
Effect of certain events on effectiveness of financing statement.
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
62A.9A-508
62A.9A-509
62A.9A-510
62A.9A-511
62A.9A-512
62A.9A-513
62A.9A-514
62A.9A-515
62A.9A-516
62A.9A-517
62A.9A-518
62A.9A-519
62A.9A-520
62A.9A-521
62A.9A-522
62A.9A-523
62A.9A-524
62A.9A-525
62A.9A-526
62A.9A-527
Effectiveness of financing statement if new debtor becomes
bound by security agreement.
Persons entitled to file a record.
Effectiveness of filed record.
Secured party of record.
Amendment of financing statement.
Termination statement.
Assignment of powers of secured party of record.
Duration and effectiveness of financing statement; effect of
lapsed financing statement.
What constitutes filing; effectiveness of filing.
Effect of indexing errors.
Claim concerning inaccurate or wrongfully filed record.
Numbering, maintaining, and indexing records; communicating information provided in records.
Acceptance and refusal to accept record.
Uniform form of written financing statement and amendment.
Maintenance and destruction of records.
Information from filing office; sale or license of records.
Delay by filing office.
Fees.
Filing-office rules.
Duty to report.
PART 6
DEFAULT
62A.9A-601
62A.9A-602
62A.9A-603
62A.9A-604
62A.9A-605
62A.9A-606
62A.9A-607
62A.9A-608
62A.9A-609
62A.9A-610
62A.9A-611
62A.9A-612
62A.9A-613
62A.9A-614
62A.9A-615
62A.9A-616
62A.9A-617
62A.9A-618
62A.9A-619
62A.9A-620
62A.9A-621
62A.9A-622
62A.9A-623
62A.9A-624
62A.9A-625
62A.9A-626
62A.9A-627
62A.9A-628
Rights after default; judicial enforcement; consignor or buyer
of accounts, chattel paper, payment intangibles, or promissory notes.
Waiver and variance of rights and duties.
Agreement on standards concerning rights and duties.
Procedure if security agreement covers real property, fixtures, or manufactured home.
Unknown debtor or secondary obligor.
Time of default for agricultural lien.
Collection and enforcement by secured party.
Application of proceeds of collection or enforcement; liability for deficiency and right to surplus.
Secured party's right to take possession after default.
Disposition of collateral after default.
Notification before disposition of collateral.
Timeliness of notification before disposition of collateral.
Contents and form of notification before disposition of collateral: General.
Contents and form of notification before disposition of collateral: Consumer-goods transaction.
Application of proceeds of disposition; liability for deficiency and right to surplus.
Explanation of calculation of surplus or deficiency.
Rights of transferee of collateral.
Rights and duties of certain secondary obligors.
Transfer of record or legal title.
Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral.
Notification of proposal to accept collateral.
Effect of acceptance of collateral.
Right to redeem collateral.
Waiver.
Remedies for secured party's failure to comply with Article.
Action in which deficiency or surplus is in issue.
Determination of whether conduct was commercially reasonable.
Nonliability and limitation on liability of secured party; liability of secondary obligor.
PART 7
TRANSITION
62A.9A-701
62A.9A-702
62A.9A-703
62A.9A-704
62A.9A-705
62A.9A-706
62A.9A-707
62A.9A-708
62A.9A-709
(2004 Ed.)
Effective date.
Savings clause.
Security interest perfected before effective date.
Security interest unperfected before effective date.
Effectiveness of action taken before effective date.
When initial financing statement suffices to continue effectiveness of financing statement.
Amendment of preeffective-date financing statement.
Persons entitled to file initial financing statement or continuation statement.
Priority.
62A.9A-102
62A.9A-101
62A.9A-101 Short title. This Article may be cited as
the Uniform Commercial Code-Secured Transactions. [2000
c 250 § 9A-101.]
62A.9A-102
62A.9A-102 Definitions and index of definitions. (a)
Article 9A definitions. In this Article:
(1) "Accession" means goods that are physically united
with other goods in such a manner that the identity of the
original goods is not lost.
(2)(A) "Account," except as used in "account for,"
means a right to payment of a monetary obligation, whether
or not earned by performance, (i) for property that has been or
is to be sold, leased, licensed, assigned, or otherwise disposed
of, (ii) for services rendered or to be rendered, (iii) for a policy of insurance issued or to be issued, (iv) for a secondary
obligation incurred or to be incurred, (v) for energy provided
or to be provided, (vi) for the use or hire of a vessel under a
charter or other contract, (vii) arising out of the use of a credit
or charge card or information contained on or for use with the
card, or (viii) as winnings in a lottery or other game of chance
operated or sponsored by a state, governmental unit of a state,
or person licensed or authorized to operate the game by a
state or governmental unit of a state. The term includes
health-care-insurance receivables.
(B) The term does not include (i) rights to payment evidenced by chattel paper or an instrument, (ii) commercial tort
claims, (iii) deposit accounts, (iv) investment property, (v)
letter-of-credit rights or letters of credit, or (vi) rights to payment for money or funds advanced or sold, other than rights
arising out of the use of a credit or charge card or information
contained on or for use with the card.
(3) "Account debtor" means a person obligated on an
account, chattel paper, or general intangible. The term does
not include persons obligated to pay a negotiable instrument,
even if the instrument constitutes part of chattel paper.
(4) "Accounting," except as used in "accounting for,"
means a record:
(A) Authenticated by a secured party;
(B) Indicating the aggregate unpaid secured obligations
as of a date not more than thirty-five days earlier or thirtyfive days later than the date of the record; and
(C) Identifying the components of the obligations in reasonable detail.
(5) "Agricultural lien" means an interest, other than a
security interest, in farm products:
(A) Which secures payment or performance of an obligation for:
(i) Goods or services furnished in connection with a
debtor's farming operation; or
(ii) Rent on real property leased by a debtor in connection with its farming operation;
(B) Which is created by statute in favor of a person that:
(i) In the ordinary course of its business, furnished goods
or services to a debtor in connection with a debtor's farming
operation; or
(ii) Leased real property to a debtor in connection with
the debtor's farming operation; and
(C) Whose effectiveness does not depend on the person's
possession of the personal property.
(6) "As-extracted collateral" means:
[Title 62A RCW—page 115]
62A.9A-102
Title 62A RCW: Uniform Commercial Code
(A) Oil, gas, or other minerals that are subject to a security interest that:
(i) Is created by a debtor having an interest in the minerals before extraction; and
(ii) Attaches to the minerals as extracted; or
(B) Accounts arising out of the sale at the wellhead or
minehead of oil, gas, or other minerals in which the debtor
had an interest before extraction.
(7) "Authenticate" means:
(A) To sign; or
(B) To execute or otherwise adopt a symbol, or encrypt
or similarly process a record in whole or in part, with the
present intent of the authenticating person to identify the person and adopt or accept a record.
(8) "Bank" means an organization that is engaged in the
business of banking. The term includes savings banks, savings and loan associations, credit unions, and trust companies.
(9) "Cash proceeds" means proceeds that are money,
checks, deposit accounts, or the like.
(10) "Certificate of title" means a certificate of title with
respect to which a statute provides for the security interest in
question to be indicated on the certificate as a condition or
result of the security interest's obtaining priority over the
rights of a lien creditor with respect to the collateral.
(11) "Chattel paper" means a record or records that evidence both a monetary obligation and a security interest in
specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods
and license of software used in the goods, a lease of specific
goods, or a lease of specific goods and license of software
used in the goods. In this subsection, "monetary obligation"
means a monetary obligation secured by the goods or owed
under a lease of the goods and includes a monetary obligation
with respect to software used in the goods. The term "chattel
paper" does not include (A) charters or other contracts
involving the use or hire of a vessel or (B) records that evidence a right to payment arising out of the use of a credit or
charge card or information contained on or for use with the
card. If a transaction is evidenced by records that include an
instrument or series of instruments, the group of records
taken together constitutes chattel paper.
(12) "Collateral" means the property subject to a security
interest or agricultural lien. The term includes:
(A) Proceeds to which a security interest attaches;
(B) Accounts, chattel paper, payment intangibles, and
promissory notes that have been sold; and
(C) Goods that are the subject of a consignment.
(13) "Commercial tort claim" means a claim arising in
tort with respect to which:
(A) The claimant is an organization; or
(B) The claimant is an individual, and the claim:
(i) Arose in the course of the claimant's business or profession; and
(ii) Does not include damages arising out of personal
injury to, or the death of, an individual.
(14) "Commodity account" means an account maintained by a commodity intermediary in which a commodity
contract is carried for a commodity customer.
[Title 62A RCW—page 116]
(15) "Commodity contract" means a commodity futures
contract, an option on a commodity futures contract, a commodity option, or another contract if the contract or option is:
(A) Traded on or subject to the rules of a board of trade
that has been designated as a contract market for such a contract pursuant to federal commodities laws; or
(B) Traded on a foreign commodity board of trade,
exchange, or market, and is carried on the books of a commodity intermediary for a commodity customer.
(16) "Commodity customer" means a person for which a
commodity intermediary carries a commodity contract on its
books.
(17) "Commodity intermediary" means a person that:
(A) Is registered as a futures commission merchant under
federal commodities law; or
(B) In the ordinary course of its business, provides clearance or settlement services for a board of trade that has been
designated as a contract market pursuant to federal commodities law.
(18) "Communicate" means:
(A) To send a written or other tangible record;
(B) To transmit a record by any means agreed upon by
the persons sending and receiving the record; or
(C) In the case of transmission of a record to or by a filing office, to transmit a record by any means prescribed by
filing-office rule.
(19) "Consignee" means a merchant to which goods are
delivered in a consignment.
(20) "Consignment" means a transaction, regardless of
its form, in which a person delivers goods to a merchant for
the purpose of sale and:
(A) The merchant:
(i) Deals in goods of that kind under a name other than
the name of the person making delivery;
(ii) Is not an auctioneer; and
(iii) Is not generally known by its creditors to be substantially engaged in selling the goods of others;
(B) With respect to each delivery, the aggregate value of
the goods is one thousand dollars or more at the time of delivery;
(C) The goods are not consumer goods immediately
before delivery; and
(D) The transaction does not create a security interest
that secures an obligation.
(21) "Consignor" means a person that delivers goods to a
consignee in a consignment.
(22) "Consumer debtor" means a debtor in a consumer
transaction.
(23) "Consumer goods" means goods that are used or
bought for use primarily for personal, family, or household
purposes.
(24) "Consumer-goods transaction" means a consumer
transaction in which:
(A) An individual incurs a consumer obligation; and
(B) A security interest in consumer goods secures the
obligation.
(25) "Consumer obligation" means an obligation which:
(A) Is incurred as part of a transaction entered into primarily for personal, family, or household purposes; and
(B) Arises from an extension of credit, or commitment to
extend credit, in an aggregate amount not exceeding forty
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
thousand dollars, or is secured by personal property used or
expected to be used as a principal dwelling.
"Consumer obligor" means an obligor who is an individual and who incurred a consumer obligation.
(26) "Consumer transaction" means a transaction in
which (A) an individual incurs a consumer obligation, (B) a
security interest secures the obligation, and (C) the collateral
is held or acquired primarily for personal, family, or household purposes. The term includes consumer-goods transactions.
(27) "Continuation statement" means an amendment of a
financing statement which:
(A) Identifies, by its file number, the initial financing
statement to which it relates; and
(B) Indicates that it is a continuation statement for, or
that it is filed to continue the effectiveness of, the identified
financing statement.
(28) "Debtor" means:
(A) A person having an interest, other than a security
interest or other lien, in the collateral, whether or not the person is an obligor;
(B) A seller of accounts, chattel paper, payment intangibles, or promissory notes; or
(C) A consignee.
(29) "Deposit account" means a demand, time, savings,
passbook, or similar account maintained with a bank. The
term does not include investment property or accounts evidenced by an instrument.
(30) "Document" means a document of title or a receipt
of the type described in RCW 62A.7-201(2).
(31) "Electronic chattel paper" means chattel paper evidenced by a record or records consisting of information
stored in an electronic medium.
(32) "Encumbrance" means a right, other than an ownership interest, in real property. The term includes mortgages
and other liens on real property.
(33) "Equipment" means goods other than inventory,
farm products, or consumer goods.
(34) "Farm products" means goods, other than standing
timber, with respect to which the debtor is engaged in a farming operation and which are:
(A) Crops grown, growing, or to be grown, including:
(i) Crops produced on trees, vines, and bushes; and
(ii) Aquatic goods produced in aquacultural operations;
(B) Livestock, born or unborn, including aquatic goods
produced in aquacultural operations;
(C) Supplies used or produced in a farming operation; or
(D) Products of crops or livestock in their unmanufactured states.
(35) "Farming operation" means raising, cultivating,
propagating, fattening, grazing, or any other farming, livestock, or aquacultural operation.
(36) "File number" means the number assigned to an initial financing statement pursuant to RCW 62A.9A-519(a).
(37) "Filing office" means an office designated in RCW
62A.9A-501 as the place to file a financing statement.
(38) "Filing-office rule" means a rule adopted pursuant
to RCW 62A.9A-526.
(39) "Financing statement" means a record or records
composed of an initial financing statement and any filed
record relating to the initial financing statement.
(2004 Ed.)
62A.9A-102
(40) "Fixture filing" means the filing of a financing statement covering goods that are or are to become fixtures and
satisfying RCW 62A.9A-502 (a) and (b). The term includes
the filing of a financing statement covering goods of a transmitting utility which are or are to become fixtures.
(41) "Fixtures" means goods that have become so related
to particular real property that an interest in them arises under
real property law.
(42) "General intangible" means any personal property,
including things in action, other than accounts, chattel paper,
commercial tort claims, deposit accounts, documents, goods,
instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, or other minerals before
extraction. The term includes payment intangibles and software.
(43) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(44) "Goods" means all things that are movable when a
security interest attaches. The term includes (A) fixtures, (B)
standing timber that is to be cut and removed under a conveyance or contract for sale, (C) the unborn young of animals,
(D) crops grown, growing, or to be grown, even if the crops
are produced on trees, vines, or bushes, and (E) manufactured
homes. The term also includes a computer program embedded in goods and any supporting information provided in
connection with a transaction relating to the program if (i) the
program is associated with the goods in such a manner that it
customarily is considered part of the goods, or (ii) by becoming the owner of the goods, a person acquires a right to use
the program in connection with the goods. The term does not
include a computer program embedded in goods that consist
solely of the medium in which the program is embedded. The
term also does not include accounts, chattel paper, commercial tort claims, deposit accounts, documents, general intangibles, instruments, investment property, letter-of-credit
rights, letters of credit, money, or oil, gas, or other minerals
before extraction or a manufactured home converted to real
property under chapter 65.20 RCW.
(45) "Governmental unit" means a subdivision, agency,
department, county, parish, municipality, or other unit of the
government of the United States, a state, or a foreign country.
The term includes an organization having a separate corporate existence if the organization is eligible to issue debt on
which interest is exempt from income taxation under the laws
of the United States.
(46) "Health-care-insurance receivable" means an interest in or claim under a policy of insurance which is a right to
payment of a monetary obligation for health-care goods or
services provided.
(47) "Instrument" means a negotiable instrument or any
other writing that evidences a right to the payment of a monetary obligation, is not itself a security agreement or lease,
and is of a type that in ordinary course of business is transferred by delivery with any necessary indorsement or assignment. The term does not include (A) investment property, (B)
letters of credit, (C) writings that evidence a right to payment
arising out of the use of a credit or charge card or information
contained on or for use with the card, (D) writings that do not
contain a promise or order to pay, or (E) writings that are
expressly nontransferable or nonassignable.
[Title 62A RCW—page 117]
62A.9A-102
Title 62A RCW: Uniform Commercial Code
(48) "Inventory" means goods, other than farm products,
which:
(A) Are leased by a person as lessor;
(B) Are held by a person for sale or lease or to be furnished under a contract of service;
(C) Are furnished by a person under a contract of service; or
(D) Consist of raw materials, work in process, or materials used or consumed in a business.
(49) "Investment property" means a security, whether
certificated or uncertificated, security entitlement, securities
account, commodity contract, or commodity account.
(50) "Jurisdiction of organization," with respect to a registered organization, means the jurisdiction under whose law
the organization is organized.
(51) "Letter-of-credit right" means a right to payment or
performance under a letter of credit, whether or not the beneficiary has demanded or is at the time entitled to demand payment or performance. The term does not include the right of
a beneficiary to demand payment or performance under a letter of credit.
(52) "Lien creditor" means:
(A) A creditor that has acquired a lien on the property
involved by attachment, levy, or the like;
(B) An assignee for benefit of creditors from the time of
assignment;
(C) A trustee in bankruptcy from the date of the filing of
the petition; or
(D) A receiver in equity from the time of appointment.
(53) "Manufactured home" means a manufactured home
or mobile home as defined in RCW 46.04.302.
(54) [Reserved]
(55) "Mortgage" means a consensual interest in real
property, including fixtures, which secures payment or performance of an obligation.
(56) "New debtor" means a person that becomes bound
as debtor under RCW 62A.9A-203(d) by a security agreement previously entered into by another person.
(57) "New value" means (A) money, (B) money's worth
in property, services, or new credit, or (C) release by a transferee of an interest in property previously transferred to the
transferee. The term does not include an obligation substituted for another obligation.
(58) "Noncash proceeds" means proceeds other than
cash proceeds.
(59) "Obligor" means a person that, with respect to an
obligation secured by a security interest in or an agricultural
lien on the collateral, (A) owes payment or other performance
of the obligation, (B) has provided property other than the
collateral to secure payment or other performance of the obligation, or (C) is otherwise accountable in whole or in part for
payment or other performance of the obligation. The term
does not include issuers or nominated persons under a letter
of credit.
(60) "Original debtor", except as used in RCW 62A.9A310(c), means a person that, as debtor, entered into a security
agreement to which a new debtor has become bound under
RCW 62A.9A-203(d).
(61) "Payment intangible" means a general intangible
under which the account debtor's principal obligation is a
monetary obligation.
[Title 62A RCW—page 118]
(62) "Person related to," with respect to an individual,
means:
(A) The spouse of the individual;
(B) A brother, brother-in-law, sister, or sister-in-law of
the individual;
(C) An ancestor or lineal descendant of the individual or
the individual's spouse; or
(D) Any other relative, by blood or marriage, of the individual or the individual's spouse who shares the same home
with the individual.
(63) "Person related to," with respect to an organization,
means:
(A) A person directly or indirectly controlling, controlled by, or under common control with the organization;
(B) An officer or director of, or a person performing similar functions with respect to, the organization;
(C) An officer or director of, or a person performing similar functions with respect to, a person described in (63)(A) of
this subsection;
(D) The spouse of an individual described in (63)(A),
(B), or (C) of this subsection; or
(E) An individual who is related by blood or marriage to
an individual described in (63)(A), (B), (C), or (D) of this
subsection and shares the same home with the individual.
(64) "Proceeds", except as used in RCW 62A.9A-609(b),
means the following property:
(A) Whatever is acquired upon the sale, lease, license,
exchange, or other disposition of collateral;
(B) Whatever is collected on, or distributed on account
of, collateral;
(C) Rights arising out of collateral;
(D) To the extent of the value of collateral, claims arising
out of the loss, nonconformity, or interference with the use
of, defects or infringement of rights in, or damage to, the collateral; or
(E) To the extent of the value of collateral and to the
extent payable to the debtor or the secured party, insurance
payable by reason of the loss or nonconformity of, defects or
infringement of rights in, or damage to, the collateral.
(65) "Promissory note" means an instrument that evidences a promise to pay a monetary obligation, does not evidence an order to pay, and does not contain an acknowledgment by a bank that the bank has received for deposit a sum
of money or funds.
(66) "Proposal" means a record authenticated by a
secured party, which includes the terms on which the secured
party is willing to accept collateral in full or partial satisfaction of the obligation it secures pursuant to RCW 62A.9A620, 62A.9A-621, and 62A.9A-622.
(67) "Public-finance transaction" means a secured transaction in connection with which:
(A) Debt securities are issued;
(B) All or a portion of the securities issued have an initial
stated maturity of at least twenty years; and
(C) The debtor, obligor, secured party, account debtor or
other person obligated on collateral, assignor or assignee of a
secured obligation, or assignor or assignee of a security interest is a state or a governmental unit of a state.
(68) "Pursuant to commitment," with respect to an
advance made or other value given by a secured party, means
pursuant to the secured party's obligation, whether or not a
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
subsequent event of default or other event not within the
secured party's control has relieved or may relieve the
secured party from its obligation.
(69) "Record," except as used in "for record," "of
record," "record or legal title," and "record owner," means
information that is inscribed on a tangible medium or which
is stored in an electronic or other medium and is retrievable in
perceivable form.
(70) "Registered organization" means an organization
organized solely under the law of a single state or the United
States and as to which the state or the United States must
maintain a public record showing the organization to have
been organized.
(71) "Secondary obligor" means an obligor to the extent
that:
(A) The obligor's obligation is secondary; or
(B) The obligor has a right of recourse with respect to an
obligation secured by collateral against the debtor, another
obligor, or property of either.
(72) "Secured party" means:
(A) A person in whose favor a security interest is created
or provided for under a security agreement, whether or not
any obligation to be secured is outstanding;
(B) A person that holds an agricultural lien;
(C) A consignor;
(D) A person to which accounts, chattel paper, payment
intangibles, or promissory notes have been sold;
(E) A trustee, indenture trustee, agent, collateral agent,
or other representative in whose favor a security interest or
agricultural lien is created or provided for; or
(F) A person that holds a security interest arising under
RCW 62A.2-401, 62A.2-505, 62A.2-711(3), 62A.2A508(5), 62A.4-210, or 62A.5-118.
(73) "Security agreement" means an agreement that creates or provides for a security interest.
(74) "Send," in connection with a record or notification,
means:
(A) To deposit in the mail, deliver for transmission, or
transmit by any other usual means of communication, with
postage or cost of transmission provided for, addressed to any
address reasonable under the circumstances; or
(B) To cause the record or notification to be received
within the time that it would have been received if properly
sent under (A) of this subsection.
(75) "Software" means a computer program and any supporting information provided in connection with a transaction
relating to the program. The term does not include a computer program that is included in the definition of goods.
(76) "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin
Islands, or any territory or insular possession subject to the
jurisdiction of the United States.
(77) "Supporting obligation" means a letter-of-credit
right or secondary obligation that supports the payment or
performance of an account, chattel paper, a document, a general intangible, an instrument, or investment property.
(78) "Tangible chattel paper" means chattel paper evidenced by a record or records consisting of information that
is inscribed on a tangible medium.
(79) "Termination statement" means an amendment of a
financing statement which:
(2004 Ed.)
62A.9A-102
(A) Identifies, by its file number, the initial financing
statement to which it relates; and
(B) Indicates either that it is a termination statement or
that the identified financing statement is no longer effective.
(80) "Transmitting utility" means a person primarily
engaged in the business of:
(A) Operating a railroad, subway, street railway, or trolley bus;
(B) Transmitting communications electrically, electromagnetically, or by light;
(C) Transmitting goods by pipeline or sewer; or
(D) Transmitting or producing and transmitting electricity, steam, gas, or water.
(b) Definitions in other Articles. The following definitions in other Articles apply to this Article:
"Applicant."
RCW 62A.5-102.
"Beneficiary."
RCW 62A.5-102.
"Broker."
RCW 62A.8-102.
"Certificated security."
RCW 62A.8-102.
"Check."
RCW 62A.3-104.
"Clearing corporation."
RCW 62A.8-102.
"Contract for sale."
RCW 62A.2-106.
"Customer."
RCW 62A.4-104.
"Entitlement holder."
RCW 62A.8-102.
"Financial asset."
RCW 62A.8-102.
"Holder in due course."
RCW 62A.3-302.
"Issuer" with respect to a letter of credit or letter-ofcredit right.
RCW 62A.5-102.
"Issuer" with respect to a
security.
RCW 62A.8-201.
"Lease."
RCW 62A.2A-103.
"Lease agreement."
RCW 62A.2A-103.
"Lease contract."
RCW 62A.2A-103.
"Leasehold interest."
RCW 62A.2A-103.
"Lessee."
RCW 62A.2A-103.
"Lessee in ordinary course of
business."
RCW 62A.2A-103.
"Lessor."
RCW 62A.2A-103.
"Lessor's residual interest."
RCW 62A.2A-103.
"Letter of credit."
RCW 62A.5-102.
"Merchant."
RCW 62A.2-104.
"Negotiable instrument."
RCW 62A.3-104.
"Nominated person."
RCW 62A.5-102.
"Note."
RCW 62A.3-104.
"Proceeds of a letter of
credit."
RCW 62A.5-114.
"Prove."
RCW 62A.3-103.
"Sale."
RCW 62A.2-106.
"Securities account."
RCW 62A.8-501.
"Securities intermediary."
RCW 62A.8-102.
"Security."
RCW 62A.8-102.
"Security certificate."
RCW 62A.8-102.
"Security entitlement."
RCW 62A.8-102.
"Uncertificated security."
RCW 62A.8-102.
(c) Article 1 definitions and principles. Article 1 contains general definitions and principles of construction and
interpretation applicable throughout this Article. [2001 c 32
§ 16; 2000 c 250 § 9A-102.]
Effective date—2001 c 32: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state gov[Title 62A RCW—page 119]
62A.9A-103
Title 62A RCW: Uniform Commercial Code
ernment and its existing public institutions, and takes effect July 1, 2001."
[2001 c 32 § 55.]
62A.9A-103
62A.9A-103 Purchase-money security interest;
application of payments; burden of establishing. (a) Definitions. In this section:
(1) "Purchase-money collateral" means goods or software that secures a purchase-money obligation incurred with
respect to that collateral; and
(2) "Purchase-money obligation" means an obligation of
an obligor incurred as all or part of the price of the collateral
or for value given to enable the debtor to acquire rights in, or
the use of, the collateral, if the value is in fact so used.
(b) Purchase-money security interest in goods. A
security interest in goods is a purchase-money security interest:
(1) To the extent that the goods are purchase-money collateral with respect to that security interest;
(2) If the security interest is in inventory that is or was
purchase-money collateral, also to the extent that the security
interest secures a purchase-money obligation incurred with
respect to other inventory in which the secured party holds or
held a purchase-money security interest; and
(3) Also to the extent that the security interest secures a
purchase-money obligation incurred with respect to software
in which the secured party holds or held a purchase-money
security interest.
(c) Purchase-money security interest in software. A
security interest in software is a purchase-money security
interest to the extent that the security interest also secures a
purchase-money obligation incurred with respect to goods in
which the secured party holds or held a purchase-money
security interest if:
(1) The debtor acquired its interest in the software in an
integrated transaction in which it acquired an interest in the
goods; and
(2) The debtor acquired its interest in the software for the
principal purpose of using the software in the goods.
(d) Consignor's inventory purchase-money security
interest. The security interest of a consignor in goods that
are the subject of a consignment is a purchase-money security interest in inventory.
(e) Application of payment in nonconsumer-goods
transaction. In a transaction other than a consumer-goods
transaction, if the extent to which a security interest is a purchase-money security interest depends on the application of a
payment to a particular obligation, the payment must be
applied:
(1) In accordance with any reasonable method of application to which the parties agree;
(2) In the absence of the parties' agreement to a reasonable method, in accordance with any intention of the obligor
manifested at or before the time of payment; or
(3) In the absence of an agreement to a reasonable
method and a timely manifestation of the obligor's intention,
in the following order:
(A) To obligations that are not secured; and
(B) If more than one obligation is secured, to obligations
secured by purchase-money security interests in the order in
which those obligations were incurred.
[Title 62A RCW—page 120]
(f) No loss of status of purchase-money security interest in nonconsumer-goods transaction. In a transaction
other than a consumer-goods transaction, a purchase-money
security interest does not lose its status as such, even if:
(1) The purchase-money collateral also secures an obligation that is not a purchase-money obligation;
(2) Collateral that is not purchase-money collateral also
secures the purchase-money obligation; or
(3) The purchase-money obligation has been renewed,
refinanced, consolidated, or restructured.
(g) Burden of proof in nonconsumer-goods transaction. In a transaction other than a consumer-goods transaction, a secured party claiming a purchase-money security
interest has the burden of establishing the extent to which the
security interest is a purchase-money security interest.
(h) Nonconsumer-goods transactions; no inference.
The limitation of the rules in subsections (e), (f), and (g) of
this section to transactions other than consumer-goods transactions is intended to leave to the court the determination of
the proper rules in consumer-goods transactions. The court
may not infer from that limitation the nature of the proper
rule in consumer-goods transactions and may continue to
apply established approaches. [2000 c 250 § 9A-103.]
62A.9A-104
62A.9A-104 Control of deposit account. (a) Requirements for control. A secured party has control of a deposit
account if:
(1) The secured party is the bank with which the deposit
account is maintained;
(2) The debtor, secured party, and bank have agreed in an
authenticated record that the bank will comply with instructions originated by the secured party directing disposition of
the funds in the deposit account without further consent by
the debtor; or
(3) The secured party becomes the bank's customer with
respect to the deposit account.
(b) Debtor's right to direct disposition. A secured
party that has satisfied subsection (a) of this section has control, even if the debtor retains the right to direct the disposition of funds from the deposit account. [2001 c 32 § 17; 2000
c 250 § 9A-104.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-105
62A.9A-105 Control of electronic chattel paper. A
secured party has control of electronic chattel paper if the
record or records comprising the chattel paper are created,
stored, and assigned in such a manner that:
(1) A single authoritative copy of the record or records
exists which is unique, identifiable and, except as otherwise
provided in subsections (4), (5), and (6) of this section, unalterable;
(2) The authoritative copy identifies the secured party as
the assignee of the record or records;
(3) The authoritative copy is communicated to and maintained by the secured party or its designated custodian;
(4) Copies or revisions that add or change an identified
assignee of the authoritative copy can be made only with the
participation of the secured party;
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
(5) Each copy of the authoritative copy and any copy of
a copy is readily identifiable as a copy that is not the authoritative copy; and
(6) Any revision of the authoritative copy is readily identifiable as an authorized or unauthorized revision. [2001 c 32
§ 18; 2000 c 250 § 9A-105.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-106
62A.9A-106 Control of investment property. (a)
Control under RCW 62A.8-106. A person has control of a
certificated security, uncertificated security, or security entitlement as provided in RCW 62A.8-106.
(b) Control of commodity contract. A secured party
has control of a commodity contract if:
(1) The secured party is the commodity intermediary
with which the commodity contract is carried; or
(2) The commodity customer, secured party, and commodity intermediary have agreed that the commodity intermediary will apply any value distributed on account of the
commodity contract as directed by the secured party without
further consent by the commodity customer.
(c) Effect of control of securities account or commodity account. A secured party having control of all security
entitlements or commodity contracts carried in a securities
account or commodity account has control over the securities
account or commodity account. [2000 c 250 § 9A-106.]
62A.9A-107
62A.9A-107 Control of letter-of-credit right. A
secured party has control of a letter-of-credit right to the
extent of any right to payment or performance by the issuer or
any nominated person if the issuer or nominated person has
consented to an assignment of proceeds of the letter of credit
under RCW 62A.5-114(3) or otherwise applicable law or
practice. [2001 c 32 § 19; 2000 c 250 § 9A-107.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-108
62A.9A-108 Sufficiency of description in security
agreement. (a) Sufficiency of description. Except as otherwise provided in subsections (c), (d), and (e) of this section, a
description of personal or real property is sufficient, whether
or not it is specific, if it reasonably identifies what is
described.
(b) Examples of reasonable identification. Except as
otherwise provided in subsection (d) of this section, a
description of collateral reasonably identifies the collateral if
it identifies the collateral by:
(1) Specific listing;
(2) Category;
(3) Except as otherwise provided in subsection (e) of this
section, a type of collateral defined in the Uniform Commercial Code;
(4) Quantity;
(5) Computational or allocational formula or procedure;
or
(6) Except as otherwise provided in subsection (c) of this
section, any other method, if the identity of the collateral is
objectively determinable.
(c) Supergeneric description not sufficient. A description of collateral as "all the debtor's assets" or "all the debtor's
personal property" or using words of similar import does not
(2004 Ed.)
62A.9A-109
reasonably identify the collateral. However, as provided in
RCW 62A.9A-504, such a description is sufficient in a
financing statement.
(d) Investment property. Except as otherwise provided
in subsection (e) of this section, a description of a security
entitlement, securities account, or commodity account is sufficient if it describes:
(1) The collateral by those terms or as investment property; or
(2) The underlying financial asset or commodity contract.
(e) When description by type insufficient. A description only by type of collateral defined in the Uniform Commercial Code is an insufficient description of:
(1) A commercial tort claim; or
(2) In a consumer transaction, consumer goods, a security entitlement, a securities account, or a commodity
account. [2000 c 250 § 9A-108.]
62A.9A-109 Scope. (a) General scope of Article.
Except as otherwise provided in subsections (c) and (d) of
this section, this Article applies to:
(1) A transaction, regardless of its form, that creates a
security interest in personal property or fixtures by contract;
(2) An agricultural lien;
(3) A sale of accounts, chattel paper, payment intangibles, or promissory notes;
(4) A consignment;
(5) A security interest arising under RCW 62A.2-401,
62A.2-505, 62A.2-711(3), or 62A.2A-508(5), as provided in
RCW 62A.9A-110; and
(6) A security interest arising under RCW 62A.4-210 or
62A.5-118.
(b) Security interest in secured obligation. The application of this Article to a security interest in a secured obligation is not affected by the fact that the obligation is itself
secured by a transaction or interest to which this Article does
not apply.
(c) Extent to which Article does not apply. This Article does not apply to the extent that:
(1) A statute, regulation, or treaty of the United States
preempts this Article;
(2) Another statute of this state expressly governs the
creation, perfection, priority, or enforcement of a security
interest created by this state or a governmental unit of this
state;
(3) A statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other
than a statute generally applicable to security interests,
expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or
governmental unit; or
(4) The rights of a transferee beneficiary or nominated
person under a letter of credit are independent and superior
under RCW 62A.5-114.
(d) Inapplicability of Article. This Article does not
apply to:
(1) A landlord's lien, other than an agricultural lien;
(2) A lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but RCW
62A.9A-333 applies with respect to priority of the lien;
62A.9A-109
[Title 62A RCW—page 121]
62A.9A-110
Title 62A RCW: Uniform Commercial Code
(3) An assignment of a claim for wages, salary, or other
compensation of an employee;
(4) A sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out
of which they arose;
(5) An assignment of accounts, chattel paper, payment
intangibles, or promissory notes which is for the purpose of
collection only;
(6) An assignment of a right to payment under a contract
to an assignee that is also obligated to perform under the contract;
(7) An assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;
(8) A transfer of an interest in or an assignment of a
claim under a policy of insurance, other than an assignment
by or to a health-care provider of a health-care-insurance
receivable and any subsequent assignment of the right to payment, but RCW 62A.9A-315 and 62A.9A-322 apply with
respect to proceeds and priorities in proceeds;
(9) An assignment of a right represented by a judgment,
other than a judgment taken on a right to payment that was
collateral;
(10) A right of recoupment or set-off, but:
(A) RCW 62A.9A-340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit
accounts; and
(B) RCW 62A.9A-404 applies with respect to defenses
or claims of an account debtor;
(11) The creation or transfer of an interest in or lien on
real property, including a lease or rents thereunder, except to
the extent that provision is made for:
(A) Liens on real property in RCW 62A.9A-203 and
62A.9A-308;
(B) Fixtures in RCW 62A.9A-334;
(C) Fixture filings in RCW 62A.9A-501, 62A.9A-502,
62A.9A-512, 62A.9A-516, and 62A.9A-519; and
(D) Security agreements covering personal and real
property in RCW 62A.9A-604;
(12) An assignment of a claim arising in tort, other than
a commercial tort claim, but RCW 62A.9A-315 and
62A.9A-322 apply with respect to proceeds and priorities in
proceeds;
(13) An assignment in a consumer transaction of a
deposit account on which checks can be drawn, but RCW
62A.9A-315 and 62A.9A-322 apply with respect to proceeds
and priorities in proceeds; or
(14) A transfer by this state or a governmental unit of this
state. [2000 c 250 § 9A-109.]
62A.9A-110
62A.9A-110 Security interests arising under Article 2
or 2A. A security interest arising under RCW 62A.2-401,
62A.2-505, 62A.2-711(3), or 62A.2A-508(5) is subject to
this Article. However, until the debtor obtains possession of
the goods:
(1) The security interest is enforceable, even if RCW
62A.9A-203(b)(3) has not been satisfied;
(2) Filing is not required to perfect the security interest;
(3) The rights of the secured party after default by the
debtor are governed by Article 2 or 2A; and
[Title 62A RCW—page 122]
(4) The security interest has priority over a conflicting
security interest created by the debtor. [2000 c 250 § 9A110.]
62A.9A-201
62A.9A-201 General effectiveness of security agreement. (a) General effectiveness. Except as otherwise provided in the Uniform Commercial Code, a security agreement
is effective according to its terms between the parties, against
purchasers of the collateral, and against creditors.
(b) Applicable consumer laws and other law. A transaction subject to this Article is subject to any applicable rule
of law which establishes a different rule for consumers and
(1) any other statute or regulation that regulates the rates,
charges, agreements, and practices for loans, credit sales, or
other extensions of credit and (2) any consumer-protection
statute or regulation.
(c) Other applicable law controls. In case of conflict
between this Article and a rule of law, statute, or regulation
described in subsection (b) of this section, the rule of law,
statute, or regulation controls. Failure to comply with a statute or regulation described in subsection (b) of this section
has only the effect the statute or regulation specifies.
(d) Further deference to other applicable law. This
Article does not:
(1) Validate any rate, charge, agreement, or practice that
violates a rule of law, statute, or regulation described in subsection (b) of this section; or
(2) Extend the application of the rule of law, statute, or
regulation to a transaction not otherwise subject to it. [2001
c 32 § 20; 2000 c 250 § 9A-201.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-202
62A.9A-202 Title to collateral immaterial. Except as
otherwise provided with respect to consignments or sales of
accounts, chattel paper, payment intangibles, or promissory
notes, the provisions of this Article with regard to rights and
obligations apply whether title to collateral is in the secured
party or the debtor. [2000 c 250 § 9A-202.]
62A.9A-203
62A.9A-203 Attachment and enforceability of security interest; proceeds; supporting obligations; formal
requisites. (a) Attachment. A security interest attaches to
collateral when it becomes enforceable against the debtor
with respect to the collateral, unless an agreement expressly
postpones the time of attachment.
(b) Enforceability. Except as otherwise provided in
subsections (c) through (i) of this section, a security interest
is enforceable against the debtor and third parties with
respect to the collateral only if:
(1) Value has been given;
(2) The debtor has rights in the collateral or the power to
transfer rights in the collateral to a secured party; and
(3) One of the following conditions is met:
(A) The debtor has authenticated a security agreement
that provides a description of the collateral and, if the security
interest covers timber to be cut, a description of the land concerned;
(B) The collateral is not a certificated security and is in
the possession of the secured party under RCW 62A.9A-313
pursuant to the debtor's security agreement;
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
(C) The collateral is a certificated security in registered
form and the security certificate has been delivered to the
secured party under RCW 62A.8-301 pursuant to the debtor's
security agreement; or
(D) The collateral is deposit accounts, electronic chattel
paper, investment property, or letter-of-credit rights, and the
secured party has control under RCW 62A.9A-104,
62A.9A-105, 62A.9A-106, or 62A.9A-107 pursuant to the
debtor's security agreement.
(c) Other UCC provisions. Subsection (b) of this section is subject to RCW 62A.4-210 on the security interest of
a collecting bank, RCW 62A.5-118 on the security interest of
a letter-of-credit issuer or nominated person, RCW
62A.9A-110 on a security interest arising under Article 2 or
2A, and RCW 62A.9A-206 on security interests in investment property.
(d) When person becomes bound by another person's
security agreement. A person becomes bound as debtor by
a security agreement entered into by another person if, by
operation of law other than this Article or by contract:
(1) The security agreement becomes effective to create a
security interest in the person's property; or
(2) The person becomes generally obligated for the obligations of the other person, including the obligation secured
under the security agreement, and acquires or succeeds to all
or substantially all of the assets of the other person.
(e) Effect of new debtor becoming bound. If a new
debtor becomes bound as debtor by a security agreement
entered into by another person:
(1) The agreement satisfies subsection (b)(3) of this section with respect to existing or after-acquired property of the
new debtor to the extent the property is described in the
agreement; and
(2) Another agreement is not necessary to make a security interest in the property enforceable.
(f) Proceeds and supporting obligations. The attachment of a security interest in collateral gives the secured party
the rights to proceeds provided by RCW 62A.9A-315 and is
also attachment of a security interest in a supporting obligation for the collateral.
(g) Lien securing right to payment. The attachment of
a security interest in a right to payment or performance
secured by a security interest or other lien on personal or real
property is also attachment of a security interest in the security interest, mortgage, or other lien.
(h) Security entitlement carried in securities account.
The attachment of a security interest in a securities account is
also attachment of a security interest in the security entitlements carried in the securities account.
(i) Commodity contracts carried in commodity
account. The attachment of a security interest in a commodity account is also attachment of a security interest in the
commodity contracts carried in the commodity account.
[2000 c 250 § 9A-203.]
62A.9A-204
62A.9A-204 After-acquired property; future
advances. (a) After-acquired collateral. Except as otherwise provided in subsection (b) of this section, a security
agreement may create or provide for a security interest in
after-acquired collateral.
(2004 Ed.)
62A.9A-206
(b) When after-acquired property clause not effective. A security interest does not attach, under a term constituting an after-acquired property clause, to:
(1) Consumer goods, other than an accession when given
as additional security, unless the debtor acquires rights in
them within ten days after the secured party gives value; or
(2) A commercial tort claim.
(c) Future advances and other value. A security agreement may provide that collateral secures, or that accounts,
chattel paper, payment intangibles, or promissory notes are
sold in connection with, future advances or other value,
whether or not the advances or value are given pursuant to
commitment. [2000 c 250 § 9A-204.]
62A.9A-205
62A.9A-205 Use or disposition of collateral permissible. (a) When security interest not invalid or fraudulent.
A security interest is not invalid or fraudulent against creditors solely because:
(1) The debtor has the right or ability to:
(A) Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;
(B) Collect, compromise, enforce, or otherwise deal with
collateral;
(C) Accept the return of collateral or make repossessions; or
(D) Use, commingle, or dispose of proceeds; or
(2) The secured party fails to require the debtor to
account for proceeds or replace collateral.
(b) Requirements of possession not relaxed. This section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest
depends upon possession of the collateral by the secured
party. [2000 c 250 § 9A-205.]
62A.9A-206
62A.9A-206 Security interest arising in purchase or
delivery of financial asset. (a) Security interest when person buys through securities intermediary. A security
interest in favor of a securities intermediary attaches to a person's security entitlement if:
(1) The person buys a financial asset through the securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities intermediary
at the time of the purchase; and
(2) The securities intermediary credits the financial asset
to the buyer's securities account before the buyer pays the
securities intermediary.
(b) Security interest secures obligation to pay for
financial asset. The security interest described in subsection
(a) of this section secures the person's obligation to pay for
the financial asset.
(c) Security interest in payment against delivery
transaction. A security interest in favor of a person that
delivers a certificated security or other financial asset represented by a writing attaches to the security or other financial
asset if:
(1) The security or other financial asset:
(A) In the ordinary course of business, is transferred by
delivery with any necessary indorsement or assignment; and
[Title 62A RCW—page 123]
62A.9A-207
Title 62A RCW: Uniform Commercial Code
(B) Is delivered under an agreement between persons in
the business of dealing with such securities or financial
assets; and
(2) The agreement calls for delivery against payment.
(d) Security interest secures obligation to pay for
delivery. The security interest described in subsection (c) of
this section secures the obligation to make payment for the
delivery. [2000 c 250 § 9A-206.]
62A.9A-207 Rights and duties of secured party having possession or control of collateral. (a) Duty of care
when secured party in possession. Except as otherwise provided in subsection (d) of this section, a secured party shall
use reasonable care in the custody and preservation of collateral in the secured party's possession. In the case of chattel
paper or an instrument, reasonable care includes taking necessary steps to preserve rights against prior parties unless otherwise agreed.
(b) Expenses, risks, duties, and rights when secured
party in possession. Except as otherwise provided in subsection (d) of this section, if a secured party has possession of
collateral:
(1) Reasonable expenses, including the cost of insurance
and payment of taxes or other charges, incurred in the custody, preservation, use, or operation of the collateral are
chargeable to the debtor and are secured by the collateral;
(2) The risk of accidental loss or damage is on the debtor
to the extent of a deficiency in any effective insurance coverage;
(3) The secured party shall keep the collateral identifiable, but fungible collateral may be commingled; and
(4) The secured party may use or operate the collateral:
(A) For the purpose of preserving the collateral or its
value;
(B) As permitted by an order of a court having competent jurisdiction; or
(C) Except in the case of consumer goods, in the manner
and to the extent agreed by the debtor.
(c) Duties and rights when secured party in possession or control. Except as otherwise provided in subsection
(d) of this section, a secured party having possession of collateral or control of collateral under RCW 62A.9A-104,
62A.9A-105, 62A.9A-106, or 62A.9A-107:
(1) May hold as additional security any proceeds, except
money or funds, received from the collateral;
(2) Shall apply money or funds received from the collateral to reduce the secured obligation, unless remitted to the
debtor; and
(3) May create a security interest in the collateral.
(d) Buyer of certain rights to payment. If the secured
party is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor:
(1) Subsection (a) of this section does not apply unless
the secured party is entitled under an agreement:
(A) To charge back uncollected collateral; or
(B) Otherwise to full or limited recourse against the
debtor or a secondary obligor based on the nonpayment or
other default of an account debtor or other obligor on the collateral; and
(2) Subsections (b) and (c) of this section do not apply.
[2000 c 250 § 9A-207.]
62A.9A-207
[Title 62A RCW—page 124]
62A.9A-208
62A.9A-208 Additional duties of secured party having control of collateral. (a) Applicability of section. This
section applies to cases in which there is no outstanding
secured obligation and the secured party is not committed to
make advances, incur obligations, or otherwise give value.
(b) Duties of secured party after receiving demand
from debtor. Within ten days after receiving an authenticated demand by the debtor:
(1) A secured party having control of a deposit account
under RCW 62A.9A-104(a)(2) shall send to the bank with
which the deposit account is maintained an authenticated
statement that releases the bank from any further obligation
to comply with instructions originated by the secured party;
(2) A secured party having control of a deposit account
under RCW 62A.9A-104(a)(3) shall:
(A) Pay the debtor the balance on deposit in the deposit
account; or
(B) Transfer the balance on deposit into a deposit
account in the debtor's name;
(3) A secured party, other than a buyer, having control of
electronic chattel paper under RCW 62A.9A-105 shall:
(A) Communicate the authoritative copy of the electronic chattel paper to the debtor or its designated custodian;
(B) If the debtor designates a custodian that is the designated custodian with which the authoritative copy of the electronic chattel paper is maintained for the secured party, communicate to the custodian an authenticated record releasing
the designated custodian from any further obligation to comply with instructions originated by the secured party and
instructing the custodian to comply with instructions originated by the debtor; and
(C) Take appropriate action to enable the debtor or its
designated custodian to make copies of or revisions to the
authoritative copy which add or change an identified assignee
of the authoritative copy without the consent of the secured
party;
(4) A secured party having control of investment property under RCW 62A.8-106(4)(b) or 62A.9A-106(b) shall
send to the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained an authenticated record that releases the
securities intermediary or commodity intermediary from any
further obligation to comply with entitlement orders or directions originated by the secured party; and
(5) A secured party having control of a letter-of-credit
right under RCW 62A.9A-107 shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the
letter of credit to the secured party an authenticated release
from any further obligation to pay or deliver proceeds of the
letter of credit to the secured party. [2001 c 32 § 21; 2000 c
250 § 9A-208.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-209
62A.9A-209 Duties of secured party if account
debtor has been notified of assignment. (a) Applicability
of section. Except as otherwise provided in subsection (c) of
this section, this section applies if:
(1) There is no outstanding secured obligation; and
(2) The secured party is not committed to make
advances, incur obligations, or otherwise give value.
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
(b) Duties of secured party after receiving demand
from debtor. Within ten days after receiving an authenticated demand by the debtor, a secured party shall send to an
account debtor that has received notification of an assignment to the secured party as assignee under RCW
62A.9A-406(a) an authenticated record that releases the
account debtor from any further obligation to the secured
party.
(c) Inapplicability to sales. This section does not apply
to an assignment constituting the sale of an account, chattel
paper, or payment intangible. [2000 c 250 § 9A-209.]
62A.9A-210
62A.9A-210 Request for accounting; request regarding list of collateral or statement of account. (a) Definitions. In this section:
(1) "Request" means a record of a type described in (2),
(3), or (4) of this subsection.
(2) "Request for an accounting" means a record authenticated by a debtor requesting that the recipient provide an
accounting of the unpaid obligations secured by collateral
and reasonably identifying the transaction or relationship that
is the subject of the request.
(3) "Request regarding a list of collateral" means a
record authenticated by a debtor requesting that the recipient
approve or correct a list of what the debtor believes to be the
collateral securing an obligation and reasonably identifying
the transaction or relationship that is the subject of the
request.
(4) "Request regarding a statement of account" means a
record authenticated by a debtor requesting that the recipient
approve or correct a statement indicating what the debtor
believes to be the aggregate amount of unpaid obligations
secured by collateral as of a specified date and reasonably
identifying the transaction or relationship that is the subject
of the request.
(b) Duty to respond to requests. Subject to subsections
(c), (d), (e), and (f) of this section, a secured party, other than
a buyer of accounts, chattel paper, payment intangibles, or
promissory notes or a consignor, shall comply with a request
within fourteen days after receipt:
(1) In the case of a request for an accounting, by authenticating and sending to the debtor an accounting; and
(2) In the case of a request regarding a list of collateral or
a request regarding a statement of account, by authenticating
and sending to the debtor an approval or correction.
(c) Request regarding list of collateral; statement
concerning type of collateral. A secured party that claims a
security interest in all of a particular type of collateral owned
by the debtor may comply with a request regarding a list of
collateral by sending to the debtor an authenticated record
including a statement to that effect within fourteen days after
receipt.
(d) Request regarding list of collateral; no interest
claimed. A person that receives a request regarding a list of
collateral, claims no interest in the collateral when it receives
the request, and claimed an interest in the collateral at an earlier time shall comply with the request within fourteen days
after receipt by sending to the debtor an authenticated record:
(1) Disclaiming any interest in the collateral; and
(2004 Ed.)
62A.9A-302
(2) If known to the recipient, providing the name and
mailing address of any assignee of, or successor to, the recipient's interest in the collateral.
(e) Request for accounting or regarding statement of
account; no interest in obligation claimed. A person that
receives a request for an accounting or a request regarding a
statement of account, claims no interest in the obligations
when it receives the request, and claimed an interest in the
obligations at an earlier time shall comply with the request
within fourteen days after receipt by sending to the debtor an
authenticated record:
(1) Disclaiming any interest in the obligations; and
(2) If known to the recipient, providing the name and
mailing address of any assignee of, or successor to, the recipient's interest in the obligations.
(f) Charges for responses. A debtor is entitled without
charge to one response to a request under this section during
any six-month period. The secured party may require payment of a charge not exceeding twenty-five dollars for each
additional response. [2000 c 250 § 9A-210.]
62A.9A-301
62A.9A-301 Law governing perfection and priority
of security interests. Except as otherwise provided in RCW
62A.9A-303 through 62A.9A-306, the following rules determine the law governing perfection, the effect of perfection or
nonperfection, and the priority of a security interest in collateral:
(1) Except as otherwise provided in this section, while a
debtor is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral.
(2) While collateral is located in a jurisdiction, the local
law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a possessory
security interest in that collateral.
(3) Except as otherwise provided in subsection (4) of this
section, while negotiable documents, goods, instruments,
money, or tangible chattel paper is located in a jurisdiction,
the local law of that jurisdiction governs:
(A) Perfection of a security interest in the goods by filing
a fixture filing;
(B) Perfection of a security interest in timber to be cut;
and
(C) The effect of perfection or nonperfection and the priority of a nonpossessory security interest in the collateral.
(4) The local law of the jurisdiction in which the wellhead or minehead is located governs perfection, the effect of
perfection or nonperfection, and the priority of a security
interest in as-extracted collateral. [2001 c 32 § 22; 2000 c
250 § 9A-301.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-302
62A.9A-302 Law governing perfection and priority
of agricultural liens. While farm products are located in a
jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority
of an agricultural lien on the farm products. [2000 c 250 §
9A-302.]
[Title 62A RCW—page 125]
62A.9A-303
Title 62A RCW: Uniform Commercial Code
62A.9A-303
62A.9A-303 Law governing perfection and priority
of security interests in goods covered by a certificate of
title. (a) Applicability of section. This section applies to
goods covered by a certificate of title, even if there is no other
relationship between the jurisdiction under whose certificate
of title the goods are covered and the goods or the debtor.
(b) When goods covered by certificate of title. Goods
become covered by a certificate of title when a valid application for the certificate of title and the applicable fee are delivered to the appropriate authority. Goods cease to be covered
by a certificate of title at the earlier of the time the certificate
of title ceases to be effective under the law of the issuing
jurisdiction or the time the goods become covered subsequently by a certificate of title issued by another jurisdiction.
(c) Applicable law. The local law of the jurisdiction
under whose certificate of title the goods are covered governs
perfection, the effect of perfection or nonperfection, and the
priority of a security interest in goods covered by a certificate
of title from the time the goods become covered by the certificate of title until the goods cease to be covered by the certificate of title. [2000 c 250 § 9A-303.]
62A.9A-304
62A.9A-304 Law governing perfection and priority
of security interests in deposit accounts. (a) Law of
bank's jurisdiction governs. The local law of a bank's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit
account maintained with that bank.
(b) Bank's jurisdiction. The following rules determine
a bank's jurisdiction for purposes of this part:
(1) If an agreement between the bank and the debtor governing the deposit account expressly provides that a particular jurisdiction is the bank's jurisdiction for purposes of this
part, this Article, or the Uniform Commercial Code, that
jurisdiction is the bank's jurisdiction.
(2) If (1) of this subsection does not apply and an agreement between the bank and its customer governing the
deposit account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction
is the bank's jurisdiction.
(3) If neither (1) nor (2) of this subsection applies and an
agreement between the bank and its customer governing the
deposit account expressly provides that the deposit account is
maintained at an office in a particular jurisdiction, that jurisdiction is the bank's jurisdiction.
(4) If (1) through (3) of this subsection do not apply, the
bank's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the customer's account is located.
(5) If (1) through (4) of this subsection do not apply, the
bank's jurisdiction is the jurisdiction in which the chief executive office of the bank is located. [2000 c 250 § 9A-304.]
62A.9A-305
62A.9A-305 Law governing perfection and priority
of security interests in investment property. (a) Governing law: General rules. Except as otherwise provided in
subsection (c) of this section, the following rules apply:
(1) While a security certificate is located in a jurisdiction, the local law of that jurisdiction governs perfection, the
effect of perfection or nonperfection, and the priority of a
[Title 62A RCW—page 126]
security interest in the certificated security represented
thereby.
(2) The local law of the issuer's jurisdiction as specified
in RCW 62A.8-110(4) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest
in an uncertificated security.
(3) The local law of the securities intermediary's jurisdiction as specified in RCW 62A.8-110(5) governs perfection, the effect of perfection or nonperfection, and the priority
of a security interest in a security entitlement or securities
account.
(4) The local law of the commodity intermediary's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a commodity
contract or commodity account.
(b) Commodity intermediary's jurisdiction. The following rules determine a commodity intermediary's jurisdiction for purposes of this part:
(1) If an agreement between the commodity intermediary and commodity customer governing the commodity
account expressly provides that a particular jurisdiction is the
commodity intermediary's jurisdiction for purposes of this
part, this Article, or the Uniform Commercial Code, that
jurisdiction is the commodity intermediary's jurisdiction.
(2) If (1) of this subsection does not apply and an agreement between the commodity intermediary and commodity
customer governing the commodity account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the commodity intermediary's jurisdiction.
(3) If neither (1) nor (2) of this subsection applies and an
agreement between the commodity intermediary and commodity customer governing the commodity account
expressly provides that the commodity account is maintained
at an office in a particular jurisdiction, that jurisdiction is the
commodity intermediary's jurisdiction.
(4) If (1) through (3) of this subsection do not apply, the
commodity intermediary's jurisdiction is the jurisdiction in
which the office identified in an account statement as the
office serving the commodity customer's account is located.
(5) If (1) through (4) of this subsection do not apply, the
commodity intermediary's jurisdiction is the jurisdiction in
which the chief executive office of the commodity intermediary is located.
(c) When perfection governed by law of jurisdiction
where debtor located. The local law of the jurisdiction in
which the debtor is located governs:
(1) Perfection of a security interest in investment property by filing;
(2) Automatic perfection of a security interest in investment property created by a broker or securities intermediary;
and
(3) Automatic perfection of a security interest in a commodity contract or commodity account created by a commodity intermediary. [2001 c 32 § 23; 2000 c 250 § 9A-305.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-306
62A.9A-306 Law governing perfection and priority
of security interests in letter-of-credit rights. (a) Governing law: Issuer's or nominated person's jurisdiction.
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
Subject to subsection (c) of this section, the local law of the
issuer's jurisdiction or a nominated person's jurisdiction governs perfection, the effect of perfection or nonperfection, and
the priority of a security interest in a letter-of-credit right if
the issuer's jurisdiction or nominated person's jurisdiction is a
state.
(b) Issuer's or nominated person's jurisdiction. For
purposes of this part, an issuer's jurisdiction or nominated
person's jurisdiction is the jurisdiction whose law governs the
liability of the issuer or nominated person with respect to the
letter-of-credit right as provided in RCW 62A.5-116.
(c) When section not applicable. This section does not
apply to a security interest that is perfected only under RCW
62A.9A-308(d). [2001 c 32 § 24; 2000 c 250 § 9A-306.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-307
62A.9A-307 Location of debtor. (a) "Place of business." In this section, "place of business" means a place
where a debtor conducts its affairs.
(b) Debtor's location: General rules. Except as otherwise provided in this section, the following rules determine a
debtor's location:
(1) A debtor who is an individual is located at the individual's principal residence.
(2) A debtor that is an organization and has only one
place of business is located at its place of business.
(3) A debtor that is an organization and has more than
one place of business is located at its chief executive office.
(c) Limitation of applicability of subsection (b). Subsection (b) of this section applies only if a debtor's residence,
place of business, or chief executive office, as applicable, is
located in a jurisdiction whose law generally requires information concerning the existence of a nonpossessory security
interest to be made generally available in a filing, recording,
or registration system as a condition or result of the security
interest's obtaining priority over the rights of a lien creditor
with respect to the collateral. If subsection (b) of this section
does not apply, the debtor is located in the District of Columbia.
(d) Continuation of location: Cessation of existence,
etc. A person that ceases to exist, have a residence, or have a
place of business continues to be located in the jurisdiction
specified by subsections (b) and (c) of this section.
(e) Location of registered organization organized
under state law. A registered organization that is organized
under the law of a state is located in that state.
(f) Location of registered organization organized
under federal law; bank branches and agencies. Except as
otherwise provided in subsection (i) of this section, a registered organization that is organized under the law of the
United States and a branch or agency of a bank that is not
organized under the law of the United States or a state are
located:
(1) In the state that the law of the United States designates, if the law designates a state of location;
(2) In the state that the registered organization, branch,
or agency designates, if the law of the United States authorizes the registered organization, branch, or agency to designate its state of location; or
(2004 Ed.)
62A.9A-308
(3) In the District of Columbia, if neither (1) nor (2) of
this subsection applies.
(g) Continuation of location: Change in status of registered organization. A registered organization continues to
be located in the jurisdiction specified by subsection (e) or (f)
of this section notwithstanding:
(1) The suspension, revocation, forfeiture, or lapse of the
registered organization's status as such in its jurisdiction of
organization; or
(2) The dissolution, winding up, or cancellation of the
existence of the registered organization.
(h) Location of United States. The United States is
located in the District of Columbia.
(i) Location of foreign bank branch or agency if
licensed in only one state. A branch or agency of a bank that
is not organized under the law of the United States or a state
is located in the state in which the branch or agency is
licensed, if all branches and agencies of the bank are licensed
in only one state.
(j) Location of foreign air carrier. A foreign air carrier
under the Federal Aviation Act of 1958, as amended, is
located at the designated office of the agent upon which service of process may be made on behalf of the carrier.
(k) Section applies only to this part. This section
applies only for purposes of this part. [2000 c 250 § 9A-307.]
62A.9A-308 When security interest or agricultural
lien is perfected; continuity of perfection. (a) Perfection
of security interest. Except as otherwise provided in this
section and RCW 62A.9A-309, a security interest is perfected if it has attached and all of the applicable requirements
for perfection in RCW 62A.9A-310 through 62A.9A-316
have been satisfied. A security interest is perfected when it
attaches if the applicable requirements are satisfied before the
security interest attaches.
(b) Perfection of agricultural lien. An agricultural lien
is perfected if it has become effective and all of the applicable
requirements for perfection in RCW 62A.9A-310 have been
satisfied. An agricultural lien is perfected when it becomes
effective if the applicable requirements are satisfied before
the agricultural lien becomes effective.
(c) Continuous perfection; perfection by different
methods. A security interest or agricultural lien is perfected
continuously if it is originally perfected by one method under
this Article and is later perfected by another method under
this Article, without an intermediate period when it was
unperfected.
(d) Supporting obligation. Perfection of a security
interest in collateral also perfects a security interest in a supporting obligation for the collateral.
(e) Lien securing right to payment. Perfection of a
security interest in a right to payment or performance also
perfects a security interest in a security interest, mortgage, or
other lien on personal or real property securing the right.
(f) Security entitlement carried in securities account.
Perfection of a security interest in a securities account also
perfects a security interest in the security entitlements carried
in the securities account.
(g) Commodity contract carried in commodity
account. Perfection of a security interest in a commodity
account also perfects a security interest in the commodity
62A.9A-308
[Title 62A RCW—page 127]
62A.9A-309
Title 62A RCW: Uniform Commercial Code
contracts carried in the commodity account. [2000 c 250 §
9A-308.]
62A.9A-309
62A.9A-309 Security interest perfected upon attachment. The following security interests are perfected when
they attach:
(1) A purchase-money security interest in consumer
goods, except as otherwise provided in RCW 62A.9A-311(b)
with respect to consumer goods that are subject to a statute or
treaty described in RCW 62A.9A-311(a);
(2) An assignment of accounts or payment intangibles
which does not by itself or in conjunction with other assignments to the same assignee transfer more than fifty thousand
dollars, or ten percent of the total amount of the assignor's
outstanding accounts and payment intangibles;
(3) A sale of a payment intangible;
(4) A sale of a promissory note;
(5) A security interest created by the assignment of a
health-care-insurance receivable to the provider of the healthcare goods or services;
(6) A security interest arising under RCW 62A.2-401,
62A.2-505, 62A.2-711(3), or 62A.2A-508(5), until the
debtor obtains possession of the collateral;
(7) A security interest of a collecting bank arising under
RCW 62A.4-210;
(8) A security interest of an issuer or nominated person
arising under RCW 62A.5-118;
(9) A security interest arising in the delivery of a financial asset under RCW 62A.9A-206(c);
(10) A security interest in investment property created by
a broker or securities intermediary;
(11) A security interest in a commodity contract or a
commodity account created by a commodity intermediary;
(12) An assignment for the benefit of all creditors of the
transferor and subsequent transfers by the assignee thereunder; and
(13) A security interest created by an assignment of a
beneficial interest in a decedent's estate. [2000 c 250 § 9A309.]
62A.9A-310
62A.9A-310 When filing required to perfect security
interest or agricultural lien; security interests and agricultural liens to which filing provisions do not apply. (a)
General rule: Perfection by filing. Except as otherwise
provided in subsections (b) and (d) of this section and RCW
62A.9A-312(b), a financing statement must be filed to perfect all security interests and agricultural liens.
(b) Exceptions: Filing not necessary. The filing of a
financing statement is not necessary to perfect a security
interest:
(1) That is perfected under RCW 62A.9A-308 (d), (e),
(f), or (g);
(2) That is perfected under RCW 62A.9A-309 when it
attaches;
(3) In property subject to a statute, regulation, or treaty
described in RCW 62A.9A-311(a);
(4) In goods in possession of a bailee which is perfected
under RCW 62A.9A-312(d) (1) or (2);
[Title 62A RCW—page 128]
(5) In certificated securities, documents, goods, or
instruments which is perfected without filing or possession
under RCW 62A.9A-312 (e), (f), or (g);
(6) In collateral in the secured party's possession under
RCW 62A.9A-313;
(7) In a certificated security which is perfected by delivery of the security certificate to the secured party under RCW
62A.9A-313;
(8) In deposit accounts, electronic chattel paper, investment property, or letter-of-credit rights which is perfected by
control under RCW 62A.9A-314;
(9) In proceeds which is perfected under RCW
62A.9A-315; or
(10) That is perfected under RCW 62A.9A-316.
(c) Assignment of perfected security interest. If a
secured party assigns a perfected security interest or agricultural lien, a filing under this Article is not required to continue the perfected status of the security interest against creditors of and transferees from the original debtor.
(d) Further exception: Filing not necessary for handler's lien. The filing of a financing statement is not necessary to perfect the agricultural lien of a handler on orchard
crops as provided in RCW 60.11.020(3). [2000 c 250 § 9A310.]
62A.9A-311 Perfection of security interests in property subject to certain statutes, regulations, and treaties.
(a) Security interest subject to other law. Except as otherwise provided in subsection (d) of this section, the filing of a
financing statement is not necessary or effective to perfect a
security interest in property subject to:
(1) A statute, regulation, or treaty of the United States
whose requirements for a security interest's obtaining priority
over the rights of a lien creditor with respect to the property
preempt RCW 62A.9A-310(a);
(2) RCW 46.12.095 or 88.02.070, or chapter 65.12
RCW; or
(3) A certificate-of-title statute of another jurisdiction
which provides for a security interest to be indicated on the
certificate as a condition or result of the security interest's
obtaining priority over the rights of a lien creditor with
respect to the property.
(b) Compliance with other law. Compliance with the
requirements of a statute, regulation, or treaty described in
subsection (a) of this section for obtaining priority over the
rights of a lien creditor is equivalent to the filing of a financing statement under this Article. Except as otherwise provided in subsection (d) of this section, RCW 62A.9A-313,
and 62A.9A-316 (d) and (e) for goods covered by a certificate of title, a security interest in property subject to a statute,
regulation, or treaty described in subsection (a) of this section
may be perfected only by compliance with those requirements, and a security interest so perfected remains perfected
notwithstanding a change in the use or transfer of possession
of the collateral.
(c) Duration and renewal of perfection. Except as otherwise provided in subsection (d) of this section and RCW
62A.9A-316 (d) and (e), duration and renewal of perfection
of a security interest perfected by compliance with the
requirements prescribed by a statute, regulation, or treaty
described in subsection (a) of this section are governed by the
62A.9A-311
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
statute, regulation, or treaty. In other respects, the security
interest is subject to this Article.
(d) Inapplicability to certain inventory. During any
period in which collateral subject to RCW 46.12.095 or
88.02.070, or chapter 65.12 RCW is inventory held for sale or
lease by a person or leased by that person as lessor and that
person is in the business of selling goods of that kind, this
section does not apply to a security interest in that collateral
created by that person. [2001 c 32 § 25; 2000 c 250 § 9A311.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-312
62A.9A-312 Perfection of security interests in chattel
paper, deposit accounts, documents, goods covered by
documents, instruments, investment property, letter-ofcredit rights, and money; perfection by permissive filing;
temporary perfection without filing or transfer of possession. (a) Perfection by filing permitted. A security interest
in chattel paper, negotiable documents, instruments, or
investment property may be perfected by filing.
(b) Control or possession of certain collateral. Except
as otherwise provided in RCW 62A.9A-315 (c) and (d) for
proceeds:
(1) A security interest in a deposit account may be perfected only by control under RCW 62A.9A-314;
(2) And except as otherwise provided in RCW
62A.9A-308(d), a security interest in a letter-of-credit right
may be perfected only by control under RCW 62A.9A-314;
and
(3) A security interest in money may be perfected only
by the secured party's taking possession under RCW
62A.9A-313.
(c) Goods covered by negotiable document. While
goods are in the possession of a bailee that has issued a negotiable document covering the goods:
(1) A security interest in the goods may be perfected by
perfecting a security interest in the document; and
(2) A security interest perfected in the document has priority over any security interest that becomes perfected in the
goods by another method during that time.
(d) Goods covered by nonnegotiable document.
While goods are in the possession of a bailee that has issued
a nonnegotiable document covering the goods, a security
interest in the goods may be perfected by:
(1) Issuance of a document in the name of the secured
party;
(2) The bailee's receipt of notification of the secured
party's interest; or
(3) Filing as to the goods.
(e) Temporary perfection: New value. A security
interest in certificated securities, negotiable documents, or
instruments is perfected without filing or the taking of possession for a period of twenty days from the time it attaches
to the extent that it arises for new value given under an
authenticated security agreement.
(f) Temporary perfection: Goods or documents
made available to debtor. A perfected security interest in a
negotiable document or goods in possession of a bailee, other
than one that has issued a negotiable document for the goods,
remains perfected for twenty days without filing if the
(2004 Ed.)
62A.9A-313
secured party makes available to the debtor the goods or documents representing the goods for the purpose of:
(1) Ultimate sale or exchange; or
(2) Loading, unloading, storing, shipping, transshipping,
manufacturing, processing, or otherwise dealing with them in
a manner preliminary to their sale or exchange.
(g) Temporary perfection: Delivery of security certificate or instrument to debtor. A perfected security interest in a certificated security or instrument remains perfected
for twenty days without filing if the secured party delivers the
security certificate or instrument to the debtor for the purpose
of:
(1) Ultimate sale or exchange; or
(2) Presentation, collection, enforcement, renewal, or
registration of transfer.
(h) Expiration of temporary perfection. After the
twenty-day period specified in subsection (e), (f), or (g) of
this section expires, perfection depends upon compliance
with this Article. [2000 c 250 § 9A-312.]
62A.9A-313
62A.9A-313 When possession by or delivery to
secured party perfects security interest without filing. (a)
Perfection by possession or delivery. Except as otherwise
provided in subsection (b) of this section, a secured party
may perfect a security interest in negotiable documents,
goods, instruments, money, or tangible chattel paper by taking possession of the collateral. A secured party may perfect
a security interest in certificated securities by taking delivery
of the certificated securities under RCW 62A.8-301.
(b) Goods covered by certificate of title. With respect
to goods covered by a certificate of title issued by this state, a
secured party may perfect a security interest in the goods by
taking possession of the goods only in the circumstances
described in RCW 62A.9A-316(d).
(c) Collateral in possession of person other than
debtor. With respect to collateral other than certificated
securities and goods covered by a document, a secured party
takes possession of collateral in the possession of a person
other than the debtor, the secured party, or a lessee of the collateral from the debtor in the ordinary course of the debtor's
business, when:
(1) The person in possession authenticates a record
acknowledging that it holds possession of the collateral for
the secured party's benefit; or
(2) The person takes possession of the collateral after
having authenticated a record acknowledging that it will hold
possession of collateral for the secured party's benefit.
(d) Time of perfection by possession; continuation of
perfection. If perfection of a security interest depends upon
possession of the collateral by a secured party, perfection
occurs no earlier than the time the secured party takes possession and continues only while the secured party retains possession.
(e) Time of perfection by delivery; continuation of
perfection. A security interest in a certificated security in
registered form is perfected by delivery when delivery of the
certificated security occurs under RCW 62A.8-301 and
remains perfected by delivery until the debtor obtains possession of the security certificate.
[Title 62A RCW—page 129]
62A.9A-314
Title 62A RCW: Uniform Commercial Code
(f) Acknowledgment not required. A person in possession of collateral is not required to acknowledge that it holds
possession for a secured party's benefit.
(g) Effectiveness of acknowledgment; no duties or
confirmation. If a person acknowledges that it holds possession for the secured party's benefit:
(1) The acknowledgment is effective under subsection
(c) of this section or RCW 62A.8-301(1), even if the
acknowledgment violates the rights of a debtor; and
(2) Unless the person otherwise agrees or law other than
this Article otherwise provides, the person does not owe any
duty to the secured party and is not required to confirm the
acknowledgment to another person.
(h) Secured party's delivery to person other than
debtor. A secured party having possession of collateral does
not relinquish possession by delivering the collateral to a person other than the debtor or a lessee of the collateral from the
debtor in the ordinary course of the debtor's business if the
person was instructed before the delivery or is instructed contemporaneously with the delivery:
(1) To hold possession of the collateral for the secured
party's benefit; or
(2) To redeliver the collateral to the secured party.
(i) Effect of delivery under subsection (h); no duties
or confirmation. A secured party does not relinquish possession, even if a delivery under subsection (h) of this section
violates the rights of a debtor. A person to which collateral is
delivered under subsection (h) of this section does not owe
any duty to the secured party and is not required to confirm
the delivery to another person unless the person otherwise
agrees or law other than this Article otherwise provides.
[2001 c 32 § 26; 2000 c 250 § 9A-313.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-314
62A.9A-314 Perfection by control. (a) Perfection by
control. A security interest in investment property, deposit
accounts, letter-of-credit rights, or electronic chattel paper
may be perfected by control of the collateral under RCW
62A.9A-104, 62A.9A-105, 62A.9A-106, or 62A.9A-107.
(b) Specified collateral: Time of perfection by control; continuation of perfection. A security interest in
deposit accounts, electronic chattel paper, or letter-of-credit
rights is perfected by control under RCW 62A.9A-104,
62A.9A-105, or 62A.9A-107 when the secured party obtains
control and remains perfected by control only while the
secured party retains control.
(c) Investment property: Time of perfection by control; continuation of perfection. A security interest in
investment property is perfected by control under RCW
62A.9A-106 from the time the secured party obtains control
and remains perfected by control until:
(1) The secured party does not have control; and
(2) One of the following occurs:
(A) If the collateral is a certificated security, the debtor
has or acquires possession of the security certificate;
(B) If the collateral is an uncertificated security, the
issuer has registered or registers the debtor as the registered
owner; or
(C) If the collateral is a security entitlement, the debtor is
or becomes the entitlement holder. [2000 c 250 § 9A-314.]
[Title 62A RCW—page 130]
62A.9A-315 Secured party's rights on disposition of
collateral and in proceeds. (a) Disposition of collateral:
Continuation of security interest or agricultural lien; proceeds. Except as otherwise provided in this Article and in
RCW 62A.2-403(2):
(1) A security interest or agricultural lien continues in
collateral notwithstanding sale, lease, license, exchange, or
other disposition thereof unless the secured party authorized
the disposition free of the security interest or agricultural
lien; and
(2) A security interest attaches to any identifiable proceeds of collateral.
(b) When commingled proceeds identifiable. Proceeds that are commingled with other property are identifiable proceeds:
(1) If the proceeds are goods, to the extent provided by
RCW 62A.9A-336; and
(2) If the proceeds are not goods, to the extent that the
secured party identifies the proceeds by a method of tracing,
including application of equitable principles, that is permitted
under law other than this Article with respect to commingled
property of the type involved.
(c) Perfection of security interest in proceeds. A security interest in proceeds is a perfected security interest if the
security interest in the original collateral was perfected.
(d) Continuation of perfection. A perfected security
interest in proceeds becomes unperfected on the twenty-first
day after the security interest attaches to the proceeds unless:
(1) The following conditions are satisfied:
(A) A filed financing statement covers the original collateral;
(B) The proceeds are collateral in which a security interest may be perfected by filing in the office in which the
financing statement has been filed; and
(C) The proceeds are not acquired with cash proceeds;
(2) The proceeds are identifiable cash proceeds; or
(3) The security interest in the proceeds is perfected
other than under subsection (c) of this section when the security interest attaches to the proceeds or within twenty days
thereafter.
(e) When perfected security interest in proceeds
becomes unperfected. If a filed financing statement covers
the original collateral, a security interest in proceeds which
remains perfected under subsection (d)(1) of this section
becomes unperfected at the later of:
(1) When the effectiveness of the filed financing statement lapses under RCW 62A.9A-515 or is terminated under
RCW 62A.9A-513; or
(2) The twenty-first day after the security interest
attaches to the proceeds. [2000 c 250 § 9A-315.]
62A.9A-315
62A.9A-316 Continued perfection of security interest
following change in governing law. (a) General rule:
Effect on perfection of change in governing law. A security interest perfected pursuant to the law of the jurisdiction
designated in RCW 62A.9A-301(1) or 62A.9A-305(c)
remains perfected until the earliest of:
(1) The time perfection would have ceased under the law
of that jurisdiction;
(2) The expiration of four months after a change of the
debtor's location to another jurisdiction; or
62A.9A-316
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
(3) The expiration of one year after a transfer of collateral to a person that thereby becomes a debtor and is located
in another jurisdiction.
(b) Security interest perfected or unperfected under
law of new jurisdiction. If a security interest described in
subsection (a) of this section becomes perfected under the
law of the other jurisdiction before the earliest time or event
described in subsection (a) of this section, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earliest time or event, it becomes unperfected and is deemed
never to have been perfected as against a purchaser of the collateral for value.
(c) Possessory security interest in collateral moved to
new jurisdiction. A possessory security interest in collateral, other than goods covered by a certificate of title and asextracted collateral consisting of goods, remains continuously perfected if:
(1) The collateral is located in one jurisdiction and subject to a security interest perfected under the law of that jurisdiction;
(2) Thereafter the collateral is brought into another jurisdiction; and
(3) Upon entry into the other jurisdiction, the security
interest is perfected under the law of the other jurisdiction.
(d) Goods covered by certificate of title from this
state. Except as otherwise provided in subsection (e) of this
section, a security interest in goods covered by a certificate of
title which is perfected by any method under the law of
another jurisdiction when the goods become covered by a
certificate of title from this state remains perfected until the
security interest would have become unperfected under the
law of the other jurisdiction had the goods not become so
covered.
(e) When subsection (d) security interest becomes
unperfected against purchasers. A security interest
described in subsection (d) of this section becomes unperfected as against a purchaser of the goods for value and is
deemed never to have been perfected as against a purchaser
of the goods for value if the applicable requirements for perfection under RCW 62A.9A-311(b) or 62A.9A-313 are not
satisfied before the earlier of:
(1) The time the security interest would have become
unperfected under the law of the other jurisdiction had the
goods not become covered by a certificate of title from this
state; or
(2) The expiration of four months after the goods had
become so covered.
(f) Change in jurisdiction of bank, issuer, nominated
person, securities intermediary, or commodity intermediary. A security interest in deposit accounts, letter-of-credit
rights, or investment property which is perfected under the
law of the bank's jurisdiction, the issuer's jurisdiction, a nominated person's jurisdiction, the securities intermediary's
jurisdiction, or the commodity intermediary's jurisdiction, as
applicable, remains perfected until the earlier of:
(1) The time the security interest would have become
unperfected under the law of that jurisdiction; or
(2) The expiration of four months after a change of the
applicable jurisdiction to another jurisdiction.
(2004 Ed.)
62A.9A-318
(g) Subsection (f) of this section security interest perfected or unperfected under law of new jurisdiction. If a
security interest described in subsection (f) of this section
becomes perfected under the law of the other jurisdiction
before the earlier of the time or the end of the period
described in subsection (f) of this section, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earlier of that time or the end of that period, it becomes unperfected and is deemed never to have been perfected as against
a purchaser of the collateral for value. [2000 c 250 § 9A316.]
62A.9A-317
62A.9A-317 Interests that take priority over or take
free of security interest or agricultural lien. (a) Conflicting security interests and rights of lien creditors. A security interest or agricultural lien is subordinate to the rights of:
(1) A person entitled to priority under RCW
62A.9A-322; and
(2) Except as otherwise provided in subsection (e) of this
section, a person that becomes a lien creditor before the earlier of the time:
(A) The security interest or agricultural lien is perfected;
or
(B) One of the conditions specified in RCW 62A.9A203(b)(3) is met and a financing statement covering the collateral is filed.
(b) Buyers that receive delivery. Except as otherwise
provided in subsection (e) of this section, a buyer, other than
a secured party, of tangible chattel paper, documents, goods,
instruments, or a security certificate takes free of a security
interest or agricultural lien if the buyer gives value and
receives delivery of the collateral without knowledge of the
security interest or agricultural lien and before it is perfected.
(c) Lessees that receive delivery. Except as otherwise
provided in subsection (e) of this section, a lessee of goods
takes free of a security interest or agricultural lien if the lessee gives value and receives delivery of the collateral without
knowledge of the security interest or agricultural lien and
before it is perfected.
(d) Licensees and buyers of certain collateral. A licensee of a general intangible or a buyer, other than a secured
party, of accounts, electronic chattel paper, general intangibles, or investment property other than a certificated security
takes free of a security interest if the licensee or buyer gives
value without knowledge of the security interest and before it
is perfected.
(e) Purchase-money security interest. Except as otherwise provided in RCW 62A.9A-320 and 62A.9A-321, if a
person files a financing statement with respect to a purchasemoney security interest before or within twenty days after the
debtor receives delivery of the collateral, the security interest
takes priority over the rights of a buyer, lessee, or lien creditor which arise between the time the security interest attaches
and the time of filing. [2001 c 32 § 27; 2000 c 250 § 9A-317.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-318
62A.9A-318 No interest retained in right to payment
that is sold; rights and title of seller of account or chattel
paper with respect to creditors and purchasers. (a) Seller
[Title 62A RCW—page 131]
62A.9A-319
Title 62A RCW: Uniform Commercial Code
retains no interest. A debtor that has sold an account, chattel paper, payment intangible, or promissory note does not
retain a legal or equitable interest in the collateral sold.
(b) Deemed rights of debtor if buyer's security interest unperfected. For purposes of determining the rights of
creditors of, and purchasers for value of an account or chattel
paper from, a debtor that has sold an account or chattel paper,
while the buyer's security interest is unperfected, the debtor is
deemed to have rights and title to the account or chattel paper
identical to those the debtor sold. [2000 c 250 § 9A-318.]
62A.9A-319
62A.9A-319 Rights and title of consignee with
respect to creditors and purchasers. (a) Consignee has
consignor's rights. Except as otherwise provided in subsection (b) of this section, for purposes of determining the rights
of creditors of, and purchasers for value of goods from, a consignee, while the goods are in the possession of the consignee, the consignee is deemed to have rights and title to the
goods identical to those the consignor had or had power to
transfer.
(b) Applicability of other law. For purposes of determining the rights of a creditor of a consignee, law other than
this Article determines the rights and title of a consignee
while goods are in the consignee's possession if, under this
part, a perfected security interest held by the consignor would
have priority over the rights of the creditor. [2000 c 250 §
9A-319.]
in goods in the possession of the secured party under RCW
62A.9A-313. [2000 c 250 § 9A-320.]
62A.9A-321
62A.9A-321 Licensee of general intangible and lessee
of goods in ordinary course of business. (a) "Licensee in
ordinary course of business." In this section, "licensee in
ordinary course of business" means a person that becomes a
licensee of a general intangible in good faith, without knowledge that the license violates the rights of another person in
the general intangible, and in the ordinary course from a person in the business of licensing general intangibles of that
kind. A person becomes a licensee in the ordinary course if
the license to the person comports with the usual or customary practices in the kind of business in which the licensor is
engaged or with the licensor's own usual or customary practices.
(b) Rights of licensee in ordinary course of business.
A licensee in ordinary course of business takes its rights
under a nonexclusive license free of a security interest in the
general intangible created by the licensor, even if the security
interest is perfected and the licensee knows of its existence.
(c) Rights of lessee in ordinary course of business. A
lessee in ordinary course of business takes its leasehold interest free of a security interest in the goods created by the lessor, even if the security interest is perfected and the lessee
knows of its existence. [2000 c 250 § 9A-321.]
62A.9A-322
62A.9A-320
62A.9A-320 Buyer of goods. (a) Buyer in ordinary
course of business. Except as otherwise provided in subsection (e) of this section, a buyer in ordinary course of business,
other than a person buying farm products from a person
engaged in farming operations, takes free of a security interest created by the buyer's seller, even if the security interest is
perfected and the buyer knows of its existence.
(b) Buyer of consumer goods. Except as otherwise provided in subsection (e) of this section, a buyer of goods from
a person who used or bought the goods for use primarily for
personal, family, or household purposes takes free of a security interest, even if perfected, if the buyer buys:
(1) Without knowledge of the security interest;
(2) For value;
(3) Primarily for the buyer's personal, family, or household purposes; and
(4) Before the filing of a financing statement covering
the goods.
(c) Effectiveness of filing for subsection (b) of this section. To the extent that it affects the priority of a security
interest over a buyer of goods under subsection (b) of this
section, the period of effectiveness of a filing made in the
jurisdiction in which the seller is located is governed by
RCW 62A.9A-316 (a) and (b).
(d) Buyer in ordinary course of business at wellhead
or minehead. A buyer in ordinary course of business buying
oil, gas, or other minerals at the wellhead or minehead or
after extraction takes free of an interest arising out of an
encumbrance.
(e) Possessory security interest not affected. Subsections (a) and (b) of this section do not affect a security interest
[Title 62A RCW—page 132]
62A.9A-322 Priorities among conflicting security
interests in and agricultural liens on same collateral. (a)
General priority rules. Except as otherwise provided in this
section, priority among conflicting security interests and
agricultural liens in the same collateral is determined according to the following rules:
(1) Conflicting perfected security interests and agricultural liens rank according to priority in time of filing or perfection. Priority dates from the earlier of the time a filing covering the collateral is first made or the security interest or
agricultural lien is first perfected, if there is no period thereafter when there is neither filing nor perfection.
(2) A perfected security interest or agricultural lien has
priority over a conflicting unperfected security interest or
agricultural lien.
(3) The first security interest or agricultural lien to attach
or become effective has priority if conflicting security interests and agricultural liens are unperfected.
(b) Time of perfection: Proceeds and supporting obligations. For the purposes of subsection (a)(1) of this section:
(1) The time of filing or perfection as to a security interest in collateral is also the time of filing or perfection as to a
security interest in proceeds; and
(2) The time of filing or perfection as to a security interest in collateral supported by a supporting obligation is also
the time of filing or perfection as to a security interest in the
supporting obligation.
(c) Special priority rules: Proceeds and supporting
obligations. Except as otherwise provided in subsection (f)
of this section, a security interest in collateral which qualifies
for priority over a conflicting security interest under RCW
62A.9A-327, 62A.9A-328, 62A.9A-329, 62A.9A-330, or
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
62A.9A-331 also has priority over a conflicting security
interest in:
(1) Any supporting obligation for the collateral; and
(2) Proceeds of the collateral if:
(A) The security interest in proceeds is perfected;
(B) The proceeds are cash proceeds or of the same type
as the collateral; and
(C) In the case of proceeds that are proceeds of proceeds,
all intervening proceeds are cash proceeds, proceeds of the
same type as the collateral, or an account relating to the collateral.
(d) First-to-file priority rule for certain collateral.
Subject to subsection (e) of this section and except as otherwise provided in subsection (f) of this section, if a security
interest in chattel paper, deposit accounts, negotiable documents, instruments, investment property, or letter-of-credit
rights is perfected by a method other than filing, conflicting
perfected security interests in proceeds of the collateral rank
according to priority in time of filing.
(e) Applicability of subsection (d) of this section. Subsection (d) of this section applies only if the proceeds of the
collateral are not cash proceeds, chattel paper, negotiable
documents, instruments, investment property, or letter-ofcredit rights.
(f) Limitations on subsections (a) through (e) of this
section. Subsections (a) through (e) of this section are subject to:
(1) Subsection (g) of this section and the other provisions
of this part;
(2) RCW 62A.4-210 with respect to a security interest of
a collecting bank;
(3) RCW 62A.5-118 with respect to a security interest of
an issuer or nominated person; and
(4) RCW 62A.9A-110 with respect to a security interest
arising under Article 2 or 2A.
(g) Priority under agricultural lien statute. A perfected agricultural lien on collateral has priority over a conflicting security interest in or agricultural lien on the same
collateral if the statute creating the agricultural lien so provides. Conflicts as to priority between and among security
interests in crops and agricultural liens subject to chapter
60.11 RCW are governed by the provisions of that chapter.
[2001 c 32 § 28; 2000 c 250 § 9A-322.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-323
62A.9A-323 Future advances. (a) When priority
based on time of advance. Except as otherwise provided in
subsection (c) of this section, for purposes of determining the
priority of a perfected security interest under RCW
62A.9A-322(a)(1), perfection of the security interest dates
from the time an advance is made to the extent that the security interest secures an advance that:
(1) Is made while the security interest is perfected only:
(A) Under RCW 62A.9A-309 when it attaches; or
(B) Temporarily under RCW 62A.9A-312 (e), (f), or (g);
and
(2) Is not made pursuant to a commitment entered into
before or while the security interest is perfected by a method
other than under RCW 62A.9A-309 or 62A.9A-312 (e), (f),
or (g).
(2004 Ed.)
62A.9A-324
(b) Lien creditor. Except as otherwise provided in subsection (c) of this section, a security interest is subordinate to
the rights of a person that becomes a lien creditor to the extent
that the security interest secures an advance made more than
forty-five days after the person becomes a lien creditor unless
the advance is made:
(1) Without knowledge of the lien; or
(2) Pursuant to a commitment entered into without
knowledge of the lien.
(c) Buyer of receivables. Subsections (a) and (b) of this
section do not apply to a security interest held by a secured
party that is a buyer of accounts, chattel paper, payment
intangibles, or promissory notes or a consignor.
(d) Buyer of goods. Except as otherwise provided in
subsection (e) of this section, a buyer of goods other than a
buyer in ordinary course of business takes free of a security
interest to the extent that it secures advances made after the
earlier of:
(1) The time the secured party acquires knowledge of the
buyer's purchase; or
(2) Forty-five days after the purchase.
(e) Advances made pursuant to commitment: Priority of buyer of goods. Subsection (d) of this section does not
apply if the advance is made pursuant to a commitment
entered into without knowledge of the buyer's purchase and
before the expiration of the forty-five day period.
(f) Lessee of goods. Except as otherwise provided in
subsection (g) of this section, a lessee of goods, other than a
lessee in ordinary course of business, takes the leasehold
interest free of a security interest to the extent that it secures
advances made after the earlier of:
(1) The time the secured party acquires knowledge of the
lease; or
(2) Forty-five days after the lease contract becomes
enforceable.
(g) Advances made pursuant to commitment: Priority of lessee of goods. Subsection (f) of this section does not
apply if the advance is made pursuant to a commitment
entered into without knowledge of the lease and before the
expiration of the forty-five day period. [2000 c 250 § 9A323.]
62A.9A-324 Priority of purchase-money security
interests. (a) General rule: Purchase-money priority.
Except as otherwise provided in subsection (g) of this section, a perfected purchase-money security interest in goods
other than inventory or livestock has priority over a conflicting security interest in the same goods, and, except as otherwise provided in RCW 62A.9A-327, a perfected security
interest in its identifiable proceeds also has priority, if the
purchase-money security interest is perfected when the
debtor receives possession of the collateral or within twenty
days thereafter.
(b) Inventory purchase-money priority. Subject to
subsection (c) of this section and except as otherwise provided in subsection (g) of this section, a perfected purchasemoney security interest in inventory has priority over a conflicting security interest in the same inventory, has priority
over a conflicting security interest in chattel paper or an
instrument constituting proceeds of the inventory and in proceeds of the chattel paper, if so provided in RCW
62A.9A-324
[Title 62A RCW—page 133]
62A.9A-325
Title 62A RCW: Uniform Commercial Code
62A.9A-330, and, except as otherwise provided in RCW
62A.9A-327, also has priority in identifiable cash proceeds of
the inventory to the extent the identifiable cash proceeds are
received on or before the delivery of the inventory to a buyer,
if:
(1) The purchase-money security interest is perfected
when the debtor receives possession of the inventory;
(2) The purchase-money secured party sends an authenticated notification to the holder of the conflicting security
interest;
(3) The holder of the conflicting security interest
receives the notification within five years before the debtor
receives possession of the inventory; and
(4) The notification states that the person sending the
notification has or expects to acquire a purchase-money security interest in inventory of the debtor and describes the
inventory.
(c) Holders of conflicting inventory security interests
to be notified. Subsections (b)(2) through (4) of this section
apply only if the holder of the conflicting security interest had
filed a financing statement covering the same types of inventory:
(1) If the purchase-money security interest is perfected
by filing, before the date of the filing; or
(2) If the purchase-money security interest is temporarily
perfected without filing or possession under RCW
62A.9A-312(f), before the beginning of the twenty-day
period thereunder.
(d) Livestock purchase-money priority. Subject to
subsection (e) of this section and except as otherwise provided in subsection (g) of this section, a perfected purchasemoney security interest in livestock that are farm products
has priority over a conflicting security interest in the same
livestock, and, except as otherwise provided in RCW
62A.9A-327, a perfected security interest in their identifiable
proceeds and identifiable products in their unmanufactured
states also has priority, if:
(1) The purchase-money security interest is perfected
when the debtor receives possession of the livestock;
(2) The purchase-money secured party sends an authenticated notification to the holder of the conflicting security
interest;
(3) The holder of the conflicting security interest
receives the notification within six months before the debtor
receives possession of the livestock; and
(4) The notification states that the person sending the
notification has or expects to acquire a purchase-money security interest in livestock of the debtor and describes the livestock.
(e) Holders of conflicting livestock security interests
to be notified. Subsections (d)(2) through (4) of this section
apply only if the holder of the conflicting security interest had
filed a financing statement covering the same types of livestock:
(1) If the purchase-money security interest is perfected
by filing, before the date of the filing; or
(2) If the purchase-money security interest is temporarily
perfected without filing or possession under RCW
62A.9A-312(f), before the beginning of the twenty-day
period thereunder.
[Title 62A RCW—page 134]
(f) Software purchase-money priority. Except as otherwise provided in subsection (g) of this section, a perfected
purchase-money security interest in software has priority
over a conflicting security interest in the same collateral, and,
except as otherwise provided in RCW 62A.9A-327, a perfected security interest in its identifiable proceeds also has
priority, to the extent that the purchase-money security interest in the goods in which the software was acquired for use
has priority in the goods and proceeds of the goods under this
section.
(g) Conflicting purchase-money security interests. If
more than one security interest qualifies for priority in the
same collateral under subsection (a), (b), (d), or (f) of this
section:
(1) A security interest securing an obligation incurred as
all or part of the price of the collateral has priority over a
security interest securing an obligation incurred for value
given to enable the debtor to acquire rights in or the use of
collateral; and
(2) In all other cases, RCW 62A.9A-322(a) applies to the
qualifying security interests. [2000 c 250 § 9A-324.]
62A.9A-325
62A.9A-325 Priority of security interests in transferred collateral. (a) Subordination of security interest in
transferred collateral. Except as otherwise provided in subsection (b) of this section, a security interest created by a
debtor is subordinate to a security interest in the same collateral created by another person if:
(1) The debtor acquired the collateral subject to the security interest created by the other person;
(2) The security interest created by the other person was
perfected when the debtor acquired the collateral; and
(3) There is no period thereafter when the security interest is unperfected.
(b) Limitation of subsection (a) of this section subordination. Subsection (a) of this section subordinates a security interest only if the security interest:
(1) Otherwise would have priority solely under RCW
62A.9A-322(a) or 62A.9A-324; or
(2) Arose solely under RCW 62A.2-711(3) or
62A.2A-508(5). [2000 c 250 § 9A-325.]
62A.9A-326
62A.9A-326 Priority of security interests created by
new debtor. (a) Subordination of security interest created
by new debtor. Subject to subsection (b) of this section, a
security interest created by a new debtor which is perfected
by a filed financing statement that is effective solely under
RCW 62A.9A-508 in collateral in which a new debtor has or
acquires rights is subordinate to a security interest in the same
collateral which is perfected other than by a filed financing
statement that is effective solely under RCW 62A.9A-508.
(b) Priority under other provisions; multiple original
debtors. The other provisions of this part determine the priority among conflicting security interests in the same collateral perfected by filed financing statements that are effective
solely under RCW 62A.9A-508. However, if the security
agreements to which a new debtor became bound as debtor
were not entered into by the same original debtor, the conflicting security interests rank according to priority in time of
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
the new debtor's having become bound. [2000 c 250 § 9A326.]
62A.9A-327
62A.9A-327 Priority of security interests in deposit
account. The following rules govern priority among conflicting security interests in the same deposit account:
(1) A security interest held by a secured party having
control of the deposit account under RCW 62A.9A-104 has
priority over a conflicting security interest held by a secured
party that does not have control.
(2) Except as otherwise provided in [subsections] (3) and
(4) of this section, security interests perfected by control
under RCW 62A.9A-314 rank according to priority in time of
obtaining control.
(3) Except as otherwise provided in [subsection] (4) of
this section, a security interest held by the bank with which
the deposit account is maintained has priority over a conflicting security interest held by another secured party.
(4) A security interest perfected by control under RCW
62A.9A-104(a)(3) has priority over a security interest held by
the bank with which the deposit account is maintained. [2000
c 250 § 9A-327.]
62A.9A-328
62A.9A-328 Priority of security interests in investment property. The following rules govern priority among
conflicting security interests in the same investment property:
(1) A security interest held by a secured party having
control of investment property under RCW 62A.9A-106 has
priority over a security interest held by a secured party that
does not have control of the investment property.
(2) Except as otherwise provided in subsections (3) and
(4) of this section, conflicting security interests held by
secured parties each of which has control under RCW
62A.9A-106 rank according to priority in time of:
(a) If the collateral is a security, obtaining control;
(b) If the collateral is a security entitlement carried in a
securities account and:
(i) If the secured party obtained control under RCW
62A.8-106(4)(a), the secured party's becoming the person for
which the securities account is maintained;
(ii) If the secured party obtained control under RCW
62A.8-106(4)(b), the securities intermediary's agreement to
comply with the secured party's entitlement orders with
respect to security entitlements carried or to be carried in the
securities account; or
(iii) If the secured party obtained control through another
person under RCW 62A.8-106(4)(c), the time on which priority would be based under this paragraph if the other person
were the secured party; or
(c) If the collateral is a commodity contract carried with
a commodity intermediary, the satisfaction of the requirement for control specified in RCW 62A.9A-106(b)(2) with
respect to commodity contracts carried or to be carried with
the commodity intermediary.
(3) A security interest held by a securities intermediary
in a security entitlement or a securities account maintained
with the securities intermediary has priority over a conflicting security interest held by another secured party.
(4) A security interest held by a commodity intermediary
in a commodity contract or a commodity account maintained
(2004 Ed.)
62A.9A-330
with the commodity intermediary has priority over a conflicting security interest held by another secured party.
(5) A security interest in a certificated security in registered form which is perfected by taking delivery under RCW
62A.9A-313(a) and not by control under RCW 62A.9A-314
has priority over a conflicting security interest perfected by a
method other than control.
(6) Conflicting security interests created by a broker,
securities intermediary, or commodity intermediary which
are perfected without control under RCW 62A.9A-106 rank
equally.
(7) In all other cases, priority among conflicting security
interests in investment property is governed by RCW
62A.9A-322 and 62A.9A-323. [2001 c 32 § 29; 2000 c 250
§ 9A-328.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-329
62A.9A-329 Priority of security interests in letter-ofcredit right. The following rules govern priority among conflicting security interests in the same letter-of-credit right:
(1) A security interest held by a secured party having
control of the letter-of-credit right under RCW 62A.9A-107
has priority to the extent of its control over a conflicting security interest held by a secured party that does not have control.
(2) Security interests perfected by control under RCW
62A.9A-314 rank according to priority in time of obtaining
control. [2000 c 250 § 9A-329.]
62A.9A-330
62A.9A-330 Priority of purchaser of chattel paper or
instrument. (a) Purchaser's priority: Security interest
claimed merely as proceeds. A purchaser of chattel paper
has priority over a security interest in the chattel paper which
is claimed merely as proceeds of inventory subject to a security interest if:
(1) In good faith and in the ordinary course of the purchaser's business, the purchaser gives new value and takes
possession of the chattel paper or obtains control of the chattel paper under RCW 62A.9A-105; and
(2) The chattel paper does not indicate that it has been
assigned to an identified assignee other than the purchaser.
(b) Purchaser's priority: Other security interests. A
purchaser of chattel paper has priority over a security interest
in the chattel paper which is claimed other than merely as
proceeds of inventory subject to a security interest if the purchaser gives new value and takes possession of the chattel
paper or obtains control of the chattel paper under RCW
62A.9A-105 in good faith, in the ordinary course of the purchaser's business, and without knowledge that the purchase
violates the rights of the secured party.
(c) Chattel paper purchaser's priority in proceeds.
Except as otherwise provided in RCW 62A.9A-327, a purchaser having priority in chattel paper under subsection (a) or
(b) of this section also has priority in proceeds of the chattel
paper to the extent that:
(1) RCW 62A.9A-322 provides for priority in the proceeds; or
(2) The proceeds consist of the specific goods covered
by the chattel paper or cash proceeds of the specific goods,
[Title 62A RCW—page 135]
62A.9A-331
Title 62A RCW: Uniform Commercial Code
even if the purchaser's security interest in the proceeds is
unperfected.
(d) Instrument purchaser's priority. Except as otherwise provided in RCW 62A.9A-331(a), a purchaser of an
instrument has priority over a security interest in the instrument perfected by a method other than possession if the purchaser gives value and takes possession of the instrument in
good faith and without knowledge that the purchase violates
the rights of the secured party.
(e) Holder of purchase-money security interest gives
new value. For purposes of subsections (a) and (b) of this
section, the holder of a purchase-money security interest in
inventory gives new value for chattel paper constituting proceeds of the inventory.
(f) Indication of assignment gives knowledge. For
purposes of subsections (b) and (d) of this section, if chattel
paper or an instrument indicates that it has been assigned to
an identified secured party other than the purchaser, a purchaser of the chattel paper or instrument has knowledge that
the purchase violates the rights of the secured party. [2000 c
250 § 9A-330.]
62A.9A-331
62A.9A-331 Priority of rights of purchasers of
instruments, documents, and securities under other articles; priority of interests in financial assets and security
entitlements under Article 8. (a) Rights under Articles 3,
7, and 8 not limited. This Article does not limit the rights of
a holder in due course of a negotiable instrument, a holder to
which a negotiable document of title has been duly negotiated, or a protected purchaser of a security. These holders or
purchasers take priority over an earlier security interest, even
if perfected, to the extent provided in Articles 3, 7, and 8.
(b) Protection under Article 8. This Article does not
limit the rights of or impose liability on a person to the extent
that the person is protected against the assertion of a claim
under Article 8.
(c) Filing not notice. Filing under this Article does not
constitute notice of a claim or defense to the holders, or purchasers, or persons described in subsections (a) and (b) of this
section. [2001 c 32 § 30; 2000 c 250 § 9A-331.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-332
62A.9A-332 Transfer of money; transfer of funds
from deposit account. (a) Transferee of money. A transferee of money takes the money free of a security interest
unless the transferee acts in collusion with the debtor in violating the rights of the secured party.
(b) Transferee of funds from deposit account. A
transferee of funds from a deposit account takes the funds
free of a security interest in the deposit account unless the
transferee acts in collusion with the debtor in violating the
rights of the secured party. [2000 c 250 § 9A-332.]
62A.9A-333
62A.9A-333 Priority of certain liens arising by operation of law. (a) "Possessory lien." In this section, "possessory lien" means an interest, other than a security interest or
an agricultural lien:
(1) Which secures payment or performance of an obligation for services or materials furnished with respect to goods
by a person in the ordinary course of the person's business;
[Title 62A RCW—page 136]
(2) Which is created by statute or rule of law in favor of
the person; and
(3) Whose effectiveness depends on the person's possession of the goods.
(b) Priority of possessory lien. A possessory lien on
goods has priority over a security interest in the goods only if
the lien is created by a statute that expressly so provides.
(c) A preparer lien or processor lien properly created
pursuant to chapter 60.13 RCW or a depositor's lien created
pursuant to chapter 22.09 RCW takes priority over any perfected or unperfected security interest. [2001 c 32 § 31; 2000
c 250 § 9A-333.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-334
62A.9A-334 Priority of security interests in fixtures
and crops. (a) Security interest in fixtures under this
Article. A security interest under this Article may be created
in goods that are fixtures or may continue in goods that
become fixtures. A security interest does not exist under this
Article in ordinary building materials incorporated into an
improvement on land.
(b) Security interest in fixtures under real-property
law. This Article does not prevent creation of an encumbrance upon fixtures under real property law.
(c) General rule: Subordination of security interest
in fixtures. In cases not governed by subsections (d) through
(h) of this section, a security interest in fixtures is subordinate
to a conflicting interest of an encumbrancer or owner of the
related real property other than the debtor.
(d) Fixtures purchase-money priority. Except as otherwise provided in subsection (h) of this section, a perfected
security interest in fixtures has priority over a conflicting
interest of an encumbrancer or owner of the real property if
the debtor has an interest of record in, or is in possession of,
the real property and:
(1) The security interest is a purchase-money security
interest;
(2) The interest of the encumbrancer or owner arises
before the goods become fixtures; and
(3) The security interest is perfected by a fixture filing
before the goods become fixtures or within twenty days
thereafter.
(e) Priority of security interest in fixtures over interests in real property. A perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if:
(1) The debtor has an interest of record in the real property or is in possession of the real property and the security
interest:
(A) Is perfected by a fixture filing before the interest of
the encumbrancer or owner is of record; and
(B) Has priority over any conflicting interest of a predecessor in title of the encumbrancer or owner;
(2) Before the goods become fixtures, the security interest is perfected by any method permitted by this Article and
the fixtures are readily removable:
(A) Factory or office machines;
(B) Equipment that is not primarily used or leased for
use in the operation of the real property; or
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
(C) Replacements of domestic appliances that are consumer goods; or
(3) The conflicting interest is a lien on the real property
obtained by legal or equitable proceedings after the security
interest was perfected by any method permitted by this Article.
(f) Priority based on consent, disclaimer, or right to
remove. A security interest in fixtures, whether or not perfected, has priority over a conflicting interest of an encumbrancer or owner of the real property if:
(1) The encumbrancer or owner has, in an authenticated
record, consented to the security interest or disclaimed an
interest in the goods as fixtures; or
(2) The debtor has a right to remove the goods as against
the encumbrancer or owner.
(g) Continuation of subsection (f)(2) priority. The priority of the security interest under subsection (f)(2) of this
section continues for a reasonable time if the debtor's right to
remove the goods as against the encumbrancer or owner terminates.
(h) Priority of construction mortgage. A mortgage is a
construction mortgage to the extent that it secures an obligation incurred for the construction of an improvement on land,
including the acquisition cost of the land, if a recorded record
of the mortgage so indicates. Except as otherwise provided in
subsections (e) and (f) of this section, a security interest in
fixtures is subordinate to a construction mortgage if a record
of the mortgage is recorded before the goods become fixtures
and the goods become fixtures before the completion of the
construction. A mortgage has this priority to the same extent
as a construction mortgage to the extent that it is given to refinance a construction mortgage.
(i) Priority of security interest in crops. A perfected
security interest in crops growing on real property has priority over a conflicting interest of an encumbrancer or owner of
the real property if the debtor has an interest of record in or is
in possession of the real property.
(j) Subsection (i) prevails. Subsection (i) of this section
prevails over inconsistent provisions of any other statute
except RCW 60.11.050. [2001 c 32 § 32; 2000 c 250 § 9A334.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-335
62A.9A-335 Accessions. (a) Creation of security
interest in accession. A security interest may be created in
an accession and continues in collateral that becomes an
accession.
(b) Perfection of security interest. If a security interest
is perfected when the collateral becomes an accession, the
security interest remains perfected in the collateral.
(c) Priority of security interest. Except as otherwise
provided in subsection (d) of this section, the other provisions
of this part determine the priority of a security interest in an
accession.
(d) Compliance with certificate-of-title statute. A
security interest in an accession is subordinate to a security
interest in the whole which is perfected by compliance with
the requirements of a certificate-of-title statute under RCW
62A.9A-311(b).
(2004 Ed.)
62A.9A-337
(e) Removal of accession after default. After default,
subject to Part 6 of this Article, a secured party may remove
an accession from other goods if the security interest in the
accession has priority over the claims of every person having
an interest in the whole.
(f) Reimbursement following removal. A secured
party that removes an accession from other goods under subsection (e) of this section shall promptly reimburse any
holder of a security interest or other lien on, or owner of, the
whole or of the other goods, other than the debtor, for the cost
of repair of any physical injury to the whole or the other
goods. The secured party need not reimburse the holder or
owner for any diminution in value of the whole or the other
goods caused by the absence of the accession removed or by
any necessity for replacing it. A person entitled to reimbursement may refuse permission to remove until the secured party
gives adequate assurance for the performance of the obligation to reimburse. [2000 c 250 § 9A-335.]
62A.9A-336
62A.9A-336 Commingled goods. (a) "Commingled
goods." In this section, "commingled goods" means goods
that are physically united with other goods in such a manner
that their identity is lost in a product or mass.
(b) No security interest in commingled goods as such.
A security interest does not exist in commingled goods as
such. However, a security interest may attach to a product or
mass that results when goods become commingled goods.
(c) Attachment of security interest to product or
mass. If collateral becomes commingled goods, a security
interest attaches to the product or mass.
(d) Perfection of security interest. If a security interest
in collateral is perfected before the collateral becomes commingled goods, the security interest that attaches to the product or mass under subsection (c) of this section is perfected.
(e) Priority of security interest. Except as otherwise
provided in subsection (f) of this section, the other provisions
of this part determine the priority of a security interest that
attaches to the product or mass under subsection (c) of this
section.
(f) Conflicting security interests in product or mass.
If more than one security interest attaches to the product or
mass under subsection (c) of this section, the following rules
determine priority:
(1) A security interest that is perfected under subsection
(d) of this section has priority over a security interest that is
unperfected at the time the collateral becomes commingled
goods.
(2) If more than one security interest is perfected under
subsection (d) of this section, the security interests rank
equally in proportion to the value of the collateral at the time
it became commingled goods. [2001 c 32 § 33; 2000 c 250 §
9A-336.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-337
62A.9A-337 Priority of security interests in goods
covered by certificate of title. If, while a security interest in
goods is perfected by any method under the law of another
jurisdiction, this state issues a certificate of title that does not
show that the goods are subject to the security interest or con[Title 62A RCW—page 137]
62A.9A-338
Title 62A RCW: Uniform Commercial Code
tain a statement that they may be subject to security interests
not shown on the certificate:
(1) A buyer of the goods, other than a person in the business of selling goods of that kind, takes free of the security
interest if the buyer gives value and receives delivery of the
goods after issuance of the certificate and without knowledge
of the security interest; and
(2) The security interest is subordinate to a conflicting
security interest in the goods that attaches, and is perfected
under RCW 62A.9A-311(b), after issuance of the certificate
and without the conflicting secured party's knowledge of the
security interest. [2000 c 250 § 9A-337.]
62A.9A-338
62A.9A-338 Priority of security interest or agricultural lien perfected by filed financing statement providing
certain incorrect information. If a security interest or agricultural lien is perfected by a filed financing statement providing information described in RCW 62A.9A-516(b)(5)
which is incorrect at the time the financing statement is filed:
(1) The security interest or agricultural lien is subordinate to a conflicting perfected security interest in the collateral to the extent that the holder of the conflicting security
interest gives value in reasonable reliance upon the incorrect
information; and
(2) A purchaser, other than a secured party, of the collateral takes free of the security interest or agricultural lien to
the extent that, in reasonable reliance upon the incorrect
information, the purchaser gives value and, in the case of
chattel paper, documents, goods, instruments, or a security
certificate, receives delivery of the collateral. [2000 c 250 §
9A-338.]
62A.9A-339
62A.9A-339 Priority subject to subordination. This
Article does not preclude subordination by agreement by a
person entitled to priority. [2000 c 250 § 9A-339.]
to a deposit account maintained with the bank are not terminated, suspended, or modified by:
(1) The creation, attachment, or perfection of a security
interest in the deposit account;
(2) The bank's knowledge of the security interest; or
(3) The bank's receipt of instructions from the secured
party. [2000 c 250 § 9A-341.]
62A.9A-342
62A.9A-342 Bank's right to refuse to enter into or
disclose existence of control agreement. This Article does
not require a bank to enter into an agreement of the kind
described in RCW 62A.9A-104(a)(2), even if its customer so
requests or directs. A bank that has entered into such an
agreement is not required to confirm the existence of the
agreement to another person unless requested to do so by its
customer. [2000 c 250 § 9A-342.]
62A.9A-401
62A.9A-401 Alienability of debtor's rights. (a) Other
law governs alienability; exceptions. Except as otherwise
provided in subsection (b) of this section and RCW
62A.9A-406, 62A.9A-407, 62A.9A-408, and 62A.9A-409,
whether a debtor's rights in collateral may be voluntarily or
involuntarily transferred is governed by law other than this
Article.
(b) Agreement does not prevent transfer. An agreement between the debtor and secured party which prohibits a
transfer of the debtor's rights in collateral or makes the transfer a default does not prevent the transfer from taking effect.
[2000 c 250 § 9A-401.]
62A.9A-402
62A.9A-402 Secured party not obligated on contract
of debtor or in tort. The existence of a security interest,
agricultural lien, or authority given to a debtor to dispose of
or use collateral, without more, does not subject a secured
party to liability in contract or tort for the debtor's acts or
omissions. [2000 c 250 § 9A-402.]
62A.9A-340
62A.9A-340 Effectiveness of right of recoupment or
set-off against deposit account. (a) Exercise of recoupment or set-off. Except as otherwise provided in subsection
(c) of this section, a bank with which a deposit account is
maintained may exercise any right of recoupment or set-off
against a secured party that holds a security interest in the
deposit account.
(b) Recoupment or set-off not affected by security
interest. Except as otherwise provided in subsection (c) of
this section, the application of this Article to a security interest in a deposit account does not affect a right of recoupment
or set-off of the secured party as to a deposit account maintained with the secured party.
(c) When set-off ineffective. The exercise by a bank of
a set-off against a deposit account is ineffective against a
secured party that holds a security interest in the deposit
account which is perfected by control under RCW
62A.9A-104(a)(3), if the set-off is based on a claim against
the debtor. [2000 c 250 § 9A-340.]
62A.9A-341
62A.9A-341 Bank's rights and duties with respect to
deposit account. Except as otherwise provided in RCW
62A.9A-340(c), and unless the bank otherwise agrees in an
authenticated record, a bank's rights and duties with respect
[Title 62A RCW—page 138]
62A.9A-403
62A.9A-403 Agreement not to assert defenses against
assignee. (a) "Value." In this section, "value" has the meaning provided in RCW 62A.3-303(a).
(b) Agreement not to assert claim or defense. Except
as otherwise provided in this section, an agreement between
an account debtor and an assignor not to assert against an
assignee any claim or defense that the account debtor may
have against the assignor is enforceable by an assignee that
takes an assignment:
(1) For value;
(2) In good faith;
(3) Without notice of a claim of a property or possessory
right to the property assigned; and
(4) Without notice of a defense or claim in recoupment
of the type that may be asserted against a person entitled to
enforce a negotiable instrument under RCW 62A.3-305(a).
(c) When subsection (b) of this section not applicable.
Subsection (b) of this section does not apply to defenses of a
type that may be asserted against a holder in due course of a
negotiable instrument under RCW 62A.3-305(b).
(d) Omission of required statement in consumer
transaction. In a consumer transaction, if a record evidences
the account debtor's obligation, law other than this Article
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
requires that the record include a statement to the effect that
the rights of an assignee are subject to claims or defenses that
the account debtor could assert against the original obligee,
and the record does not include such a statement:
(1) The record has the same effect as if the record
included such a statement; and
(2) The account debtor may assert against an assignee
those claims and defenses that would have been available if
the record included such a statement.
(e) Rule for individual under other law. This section
is subject to law other than this Article which establishes a
different rule for an account debtor who is an individual and
who incurred the obligation primarily for personal, family, or
household purposes.
(f) Other law not displaced. Except as otherwise provided in subsection (d) of this section, this section does not
displace law other than this Article which gives effect to an
agreement by an account debtor not to assert a claim or
defense against an assignee. [2000 c 250 § 9A-403.]
62A.9A-404
62A.9A-404 Rights acquired by assignee; claims and
defenses against assignee. (a) Assignee's rights subject to
terms, claims, and defenses; exceptions. Unless an account
debtor has made an enforceable agreement not to assert
defenses or claims, and subject to subsections (b) through (e)
of this section, the rights of an assignee are subject to:
(1) All terms of the agreement between the account
debtor and assignor and any defense or claim in recoupment
arising from the transaction that gave rise to the contract; and
(2) Any other defense or claim of the account debtor
against the assignor which accrues before the account debtor
receives a notification of the assignment authenticated by the
assignor or the assignee.
(b) Account debtor's claim reduces amount owed to
assignee. Subject to subsection (c) of this section, and except
as otherwise provided in subsection (d) of this section, the
claim of an account debtor against an assignor may be
asserted against an assignee under subsection (a) of this section only to reduce the amount the account debtor owes.
(c) Rule for individual under other law. This section
is subject to law other than this Article which establishes a
different rule for an account debtor who is an individual and
who incurred the obligation primarily for personal, family, or
household purposes.
(d) Omission of required statement in consumer
transaction. In a consumer transaction, if a record evidences
the account debtor's obligation, law other than this Article
requires that the record include a statement to the effect that
the account debtor's recovery against an assignee with respect
to claims and defenses against the assignor may not exceed
amounts paid by the account debtor under the record, and the
record does not include such a statement, the extent to which
a claim of an account debtor against the assignor may be
asserted against an assignee is determined as if the record
included such a statement.
(e) Inapplicability to health-care-insurance receivable. This section does not apply to an assignment of a
health-care-insurance receivable. [2000 c 250 § 9A-404.]
(2004 Ed.)
62A.9A-406
62A.9A-405 Modification of assigned contract. (a)
Effect of modification on assignee. A modification of or
substitution for an assigned contract is effective against an
assignee if made in good faith. The assignee acquires corresponding rights under the modified or substituted contract.
The assignment may provide that the modification or substitution is a breach of contract by the assignor. This subsection
is subject to subsections (b) through (d) of this section.
(b) Applicability of subsection (a) of this section. Subsection (a) of this section applies to the extent that:
(1) The right to payment or a part thereof under an
assigned contract has not been fully earned by performance;
or
(2) The right to payment or a part thereof has been fully
earned by performance and the account debtor has not
received notification of the assignment under RCW
62A.9A-406(a).
(c) Rule for individual under other law. This section
is subject to law other than this Article which establishes a
different rule for an account debtor who is an individual and
who incurred the obligation primarily for personal, family, or
household purposes.
(d) Inapplicability to health-care-insurance receivable. This section does not apply to an assignment of a
health-care-insurance receivable. [2000 c 250 § 9A-405.]
62A.9A-405
62A.9A-406
62A.9A-406 Discharge of account debtor; notification of assignment; identification and proof of assignment; restrictions on assignment of accounts, chattel
paper, payment intangibles, and promissory notes ineffective. (a) Discharge of account debtor; effect of notification. Subject to subsections (b) through (j) of this section, an
account debtor on an account, chattel paper, or a payment
intangible may discharge its obligation by paying the
assignor until, but not after, the account debtor receives a
notification, authenticated by the assignor or the assignee,
that the amount due or to become due has been assigned and
that payment is to be made to the assignee. After receipt of
the notification, the account debtor may discharge its obligation by paying the assignee and may not discharge the obligation by paying the assignor.
(b) When notification ineffective. Subject to subsection (h) of this section, notification is ineffective under subsection (a) of this section:
(1) If it does not reasonably identify the rights assigned;
(2) To the extent that an agreement between an account
debtor and a seller of a payment intangible limits the account
debtor's duty to pay a person other than the seller and the limitation is effective under law other than this Article; or
(3) At the option of an account debtor, if the notification
notifies the account debtor to make less than the full amount
of any installment or other periodic payment to the assignee,
even if:
(A) Only a portion of the account, chattel paper, or payment intangible has been assigned to that assignee;
(B) A portion has been assigned to another assignee; or
(C) The account debtor knows that the assignment to that
assignee is limited.
(c) Proof of assignment. Subject to subsection (h) of
this section, if requested by the account debtor, an assignee
shall seasonably furnish reasonable proof that the assignment
[Title 62A RCW—page 139]
62A.9A-407
Title 62A RCW: Uniform Commercial Code
has been made. Unless the assignee complies, the account
debtor may discharge its obligation by paying the assignor,
even if the account debtor has received a notification under
subsection (a) of this section.
(d) Term restricting assignment generally ineffective.
Except as otherwise provided in subsection (e) of this section
and RCW 62A.2A-303 and 62A.9A-407, and subject to subsections (h) and (j) of this section, a term in an agreement
between an account debtor and an assignor or in a promissory
note is ineffective to the extent that it:
(1) Prohibits, restricts, or requires the consent of the
account debtor or person obligated on the promissory note to
the assignment or transfer of, or the creation, attachment, perfection, or enforcement of a security interest in, the account,
chattel paper, payment intangible, or promissory note; or
(2) Provides that the assignment or transfer or the creation, attachment, perfection, or enforcement of the security
interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or
remedy under the account, chattel paper, payment intangible,
or promissory note.
(e) Inapplicability of subsection (d) to certain sales.
Subsection (d) of this section does not apply to the sale of a
payment intangible or promissory note.
(f) [Reserved]
(g) Subsection (b)(3) not waivable. Subject to subsection (h) of this section, an account debtor may not waive or
vary its option under subsection (b)(3) of this section.
(h) Rule for individual under other law. This section
is subject to law other than this Article which establishes a
different rule for an account debtor who is an individual and
who incurred the obligation primarily for personal, family, or
household purposes.
(i) Inapplicability to health-care-insurance receivable. This section does not apply to an assignment of a
health-care-insurance receivable.
(j)(1) Inapplicability of subsection (d) of this section
to certain transactions. After July 1, 2003, subsection (d) of
this section does not apply to the assignment or transfer of or
creation of a security interest in:
(A) A claim or right to receive compensation for injuries
or sickness as described in 26 U.S.C. Sec. 104(a)(1) or (2); or
(B) A claim or right to receive benefits under a special
needs trust as described in 42 U.S.C. Sec. 1396p(d)(4).
(2) This subsection will not affect a transfer of structured
settlement payment rights under chapter 19.205 RCW. [2003
c 87 § 1; 2001 c 32 § 34; 2000 c 250 § 9A-406.]
Effective date—2003 c 87: "This act is necessary for the immediate
preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2003."
[2003 c 87 § 3.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-407
62A.9A-407 Restrictions on creation or enforcement
of security interest in leasehold interest or in lessor's
residual interest. (a) Term restricting assignment generally ineffective. Except as otherwise provided in subsection
(b) of this section, a term in a lease agreement is ineffective
to the extent that it:
(1) Prohibits, restricts, or requires the consent of a party
to the lease to the assignment or transfer of, or the creation,
[Title 62A RCW—page 140]
attachment, perfection, or enforcement of a security interest
in, an interest of a party under the lease contract or in the lessor's residual interest in the goods; or
(2) Provides that the assignment or transfer or the creation, attachment, perfection, or enforcement of the security
interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or
remedy under the lease.
(b) Effectiveness of certain terms. Except as otherwise
provided in RCW 62A.2A-303(7), a term described in subsection (a)(2) of this section is effective to the extent that
there is:
(1) A transfer by the lessee of the lessee's right of possession or use of the goods in violation of the term; or
(2) A delegation of a material performance of either
party to the lease contract in violation of the term.
(c) Security interest not material impairment. The
creation, attachment, perfection, or enforcement of a security
interest in the lessor's interest under the lease contract or the
lessor's residual interest in the goods is not a transfer that
materially impairs the lessee's prospect of obtaining return
performance or materially changes the duty of or materially
increases the burden or risk imposed on the lessee within the
purview of RCW 62A.2A-303(4) unless, and then only to the
extent that, enforcement actually results in a delegation of
material performance of the lessor. [2001 c 32 § 35; 2000 c
250 § 9A-407.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-408
62A.9A-408 Restrictions on assignment of promissory notes, health-care-insurance receivables, and certain
general intangibles ineffective. (a) Term restricting
assignment generally ineffective. Except as otherwise provided in subsection (b) of this section, a term in a promissory
note or in an agreement between an account debtor and a
debtor which relates to a health-care-insurance receivable or
a general intangible, including a contract, permit, license, or
franchise, and which term prohibits, restricts, or requires the
consent of the person obligated on the promissory note or the
account debtor to, the assignment or transfer of, or creation,
attachment, or perfection of a security interest in, the promissory note, health-care-insurance receivable, or general intangible, is ineffective to the extent that the term:
(1) Would impair the creation, attachment, or perfection
of a security interest; or
(2) Provides that the assignment or transfer or the creation, attachment, or perfection of the security interest may
give rise to a default, breach, right of recoupment, claim,
defense, termination, right of termination, or remedy under
the promissory note, health-care-insurance receivable, or
general intangible.
(b) Applicability of subsection (a) of this section to
sales of certain rights to payment. Subsection (a) of this
section applies to a security interest in a payment intangible
or promissory note only if the security interest arises out of a
sale of the payment intangible or promissory note.
(c) Legal restrictions on assignment generally ineffective. A rule of law, statute, or regulation that prohibits,
restricts, or requires the consent of a government, governmental body or official, person obligated on a promissory
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
note, or account debtor to the assignment or transfer of, or
creation of a security interest in, a promissory note, healthcare-insurance receivable, or general intangible, including a
contract, permit, license, or franchise between an account
debtor and a debtor, is ineffective to the extent that the rule of
law, statute, or regulation:
(1) Would impair the creation, attachment, or perfection
of a security interest; or
(2) Provides that the assignment or transfer or the creation, attachment, or perfection of the security interest may
give rise to a default, breach, right of recoupment, claim,
defense, termination, right of termination, or remedy under
the promissory note, health-care-insurance receivable, or
general intangible.
(d) Limitation on ineffectiveness under subsections
(a) and (c) of this section. To the extent that a term in a
promissory note or in an agreement between an account
debtor and a debtor which relates to a health-care-insurance
receivable or general intangible or a rule of law, statute, or
regulation described in subsection (c) of this section would
be effective under law other than this Article but is ineffective under subsection (a) or (c) of this section, the creation,
attachment, or perfection of a security interest in the promissory note, health-care-insurance receivable, or general intangible:
(1) Is not enforceable against the person obligated on the
promissory note or the account debtor;
(2) Does not impose a duty or obligation on the person
obligated on the promissory note or the account debtor;
(3) Does not require the person obligated on the promissory note or the account debtor to recognize the security
interest, pay or render performance to the secured party, or
accept payment or performance from the secured party;
(4) Does not entitle the secured party to use or assign the
debtor's rights under the promissory note, health-care-insurance receivable, or general intangible, including any related
information or materials furnished to the debtor in the transaction giving rise to the promissory note, health-care-insurance receivable, or general intangible;
(5) Does not entitle the secured party to use, assign, possess, or have access to any trade secrets or confidential information of the person obligated on the promissory note or the
account debtor; and
(6) Does not entitle the secured party to enforce the security interest in the promissory note, health-care-insurance
receivable, or general intangible.
(e)(1) Inapplicability of subsections (a) and (c) of this
section to certain payment intangibles. After July 1, 2003,
subsections (a) and (c) of this section do not apply to the
assignment or transfer of or creation of a security interest in:
(A) A claim or right to receive compensation for injuries
or sickness as described in 26 U.S.C. Sec. 104(a)(1) or (2); or
(B) A claim or right to receive benefits under a special
needs trust as described in 42 U.S.C. Sec. 1396p(d)(4).
(2) This subsection will not affect a transfer of structured
settlement payment rights under chapter 19.205 RCW. [2003
c 87 § 2; 2000 c 250 § 9A-408.]
Effective date—2003 c 87: See note following RCW 62A.9A-406.
(2004 Ed.)
62A.9A-501
62A.9A-409
62A.9A-409 Restrictions on assignment of letter-ofcredit rights ineffective. (a) Term or law restricting
assignment generally ineffective. A term in a letter of credit
or a rule of law, statute, regulation, custom, or practice applicable to the letter of credit which prohibits, restricts, or
requires the consent of an applicant, issuer, or nominated person to a beneficiary's assignment of or creation of a security
interest in a letter-of-credit right is ineffective to the extent
that the term or rule of law, statute, regulation, custom, or
practice:
(1) Would impair the creation, attachment, or perfection
of a security interest in the letter-of-credit right; or
(2) Provides that the assignment or the creation, attachment, or perfection of the security interest may give rise to a
default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the letter-of-credit
right.
(b) Limitation on ineffectiveness under subsection (a)
of this section. To the extent that a term in a letter of credit
is ineffective under subsection (a) of this section but would
be effective under law other than this Article or a custom or
practice applicable to the letter of credit, to the transfer of a
right to draw or otherwise demand performance under the letter of credit, or to the assignment of a right to proceeds of the
letter of credit, the creation, attachment, or perfection of a
security interest in the letter-of-credit right:
(1) Is not enforceable against the applicant, issuer, nominated person, or transferee beneficiary;
(2) Imposes no duties or obligations on the applicant,
issuer, nominated person, or transferee beneficiary; and
(3) Does not require the applicant, issuer, nominated person, or transferee beneficiary to recognize the security interest, pay or render performance to the secured party, or accept
payment or other performance from the secured party. [2000
c 250 § 9A-409.]
62A.9A-501
62A.9A-501 Filing office. (a) Filing offices. Except as
otherwise provided in subsection (b) of this section, if the
local law of this state governs perfection of a security interest
or agricultural lien, the office in which to file a financing
statement to perfect the security interest or agricultural lien
is:
(1) The office designated for the filing or recording of a
record of a mortgage on the related real property, if:
(A) The collateral is as-extracted collateral or timber to
be cut; or
(B) The financing statement is filed as a fixture filing
and the collateral is goods that are or are to become fixtures;
or
(2) The department of licensing, in all other cases,
including a case in which the collateral is goods that are or are
to become fixtures and the financing statement is not filed as
a fixture filing.
(b) Filing office for transmitting utilities. The office in
which to file a financing statement to perfect a security interest in collateral, including fixtures, of a transmitting utility is
the department of licensing. The financing statement also
constitutes a fixture filing as to the collateral indicated in the
financing statement which is or is to become fixtures. [2000
c 250 § 9A-501.]
[Title 62A RCW—page 141]
62A.9A-502
Title 62A RCW: Uniform Commercial Code
62A.9A-502 Contents of financing statement; record
of mortgage as financing statement; time of filing financing statement. (a) Sufficiency of financing statement.
Subject to subsection (b) of this section, a financing statement is sufficient only if it:
(1) Provides the name of the debtor;
(2) Provides the name of the secured party or a representative of the secured party; and
(3) Indicates the collateral covered by the financing
statement.
(b) Real-property-related financing statements.
Except as otherwise provided in RCW 62A.9A-501(b), to be
sufficient, a financing statement that covers as-extracted collateral or timber to be cut, or which is filed as a fixture filing
and covers goods that are or are to become fixtures, must satisfy subsection (a) of this section and also:
(1) Indicate that it covers this type of collateral;
(2) Indicate that it is to be filed for record in the real
property records;
(3) Provide a description of the real property to which
the collateral is related sufficient to give constructive notice
of a mortgage under the law of this state if the description
were contained in a record of the mortgage of the real property; and
(4) If the debtor does not have an interest of record in the
real property, provide the name of a record owner.
(c) Record of mortgage as financing statement. A
record of a mortgage is effective, from the date of recording,
as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be
cut only if:
(1) The record indicates the goods or accounts that it
covers;
(2) The goods are or are to become fixtures related to the
real property described in the record or the collateral is
related to the real property described in the record and is asextracted collateral or timber to be cut;
(3) The record satisfies the requirements for a financing
statement in this section other than an indication that it is to
be filed in the real property records; and
(4) The record is recorded.
(d) Filing before security agreement or attachment.
A financing statement may be filed before a security agreement is made or a security interest otherwise attaches. [2000
c 250 § 9A-502.]
62A.9A-502
62A.9A-503 Name of debtor and secured party. (a)
Sufficiency of debtor's name. A financing statement sufficiently provides the name of the debtor:
(1) If the debtor is a registered organization, only if the
financing statement provides the name of the debtor indicated
on the public record of the debtor's jurisdiction of organization which shows the debtor to have been organized;
(2) If the debtor is a decedent's estate, only if the financing statement provides the name of the decedent and indicates that the debtor is an estate;
(3) If the debtor is a trust or a trustee acting with respect
to property held in trust, only if the financing statement:
(A) Provides the name specified for the trust in its
organic documents or, if no name is specified, provides the
name of the settlor and additional information sufficient to
62A.9A-503
[Title 62A RCW—page 142]
distinguish the debtor from other trusts having one or more of
the same settlors; and
(B) Indicates, in the debtor's name or otherwise, that the
debtor is a trust or is a trustee acting with respect to property
held in trust; and
(4) In other cases:
(A) If the debtor has a name, only if it provides the individual or organizational name of the debtor; and
(B) If the debtor does not have a name, only if it provides
the names of the partners, members, associates, or other persons comprising the debtor.
(b) Additional debtor-related information. A financing statement that provides the name of the debtor in accordance with subsection (a) of this section is not rendered ineffective by the absence of:
(1) A trade name or other name of the debtor; or
(2) Unless required under subsection (a)(4)(B) of this
section, names of partners, members, associates, or other persons comprising the debtor.
(c) Debtor's trade name insufficient. A financing
statement that provides only the debtor's trade name does not
sufficiently provide the name of the debtor.
(d) Representative capacity. Failure to indicate the
representative capacity of a secured party or representative of
a secured party does not affect the sufficiency of a financing
statement.
(e) Multiple debtors and secured parties. A financing
statement may provide the name of more than one debtor and
the name of more than one secured party. [2000 c 250 § 9A503.]
62A.9A-504
62A.9A-504 Indication of collateral. A financing
statement sufficiently indicates the collateral that it covers if
the financing statement provides:
(1) A description of the collateral pursuant to RCW
62A.9A-108; or
(2) An indication that the financing statement covers all
assets or all personal property. [2000 c 250 § 9A-504.]
62A.9A-505
62A.9A-505 Filing and compliance with other statutes and treaties for consignments, leases, other bailments, and other transactions. (a) Use of terms other than
"debtor" and "secured party." A consignor, lessor, or
other bailor of goods, a licensor, or a buyer of a payment
intangible or promissory note may file a financing statement,
or may comply with a statute or treaty described in RCW
62A.9A-311(a), using the terms "consignor," "consignee,"
"lessor," "lessee," "bailor," "bailee," "licensor," "licensee,"
"owner," "registered owner," "buyer," "seller," or words of
similar import, instead of the terms "secured party" and
"debtor."
(b) Effect of financing statement under subsection (a)
of this section. This part applies to the filing of a financing
statement under subsection (a) of this section and, as appropriate, to compliance that is equivalent to filing a financing
statement under RCW 62A.9A-311(b), but the filing or compliance is not of itself a factor in determining whether the collateral secures an obligation. If it is determined for another
reason that the collateral secures an obligation, a security
interest held by the consignor, lessor, bailor, licensor, owner,
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
or buyer which attaches to the collateral is perfected by the
filing or compliance. [2000 c 250 § 9A-505.]
62A.9A-506
62A.9A-506 Effect of errors or omissions. (a) Minor
errors and omissions. A financing statement substantially
satisfying the requirements of this part is effective, even if it
has minor errors or omissions, unless the errors or omissions
make the financing statement seriously misleading.
(b) Financing statement seriously misleading. Except
as otherwise provided in subsection (c) of this section, a
financing statement that fails sufficiently to provide the name
of the debtor in accordance with RCW 62A.9A-503(a) is seriously misleading.
(c) Financing statement not seriously misleading. If a
search of the records of the filing office under the debtor's
correct name, using the filing office's standard search logic, if
any, would disclose a financing statement that fails sufficiently to provide the name of the debtor in accordance with
RCW 62A.9A-503(a), the name provided does not make the
financing statement seriously misleading.
(d) "Debtor's correct name." For purposes of RCW
62A.9A-508(b), the "debtor's correct name" in subsection (c)
of this section means the correct name of the new debtor.
[2000 c 250 § 9A-506.]
62A.9A-507
62A.9A-507 Effect of certain events on effectiveness
of financing statement. (a) Disposition. A filed financing
statement remains effective with respect to collateral that is
sold, exchanged, leased, licensed, or otherwise disposed of
and in which a security interest or agricultural lien continues,
even if the secured party knows of or consents to the disposition.
(b) Information becoming seriously misleading.
Except as otherwise provided in subsection (c) of this section
and RCW 62A.9A-508, a financing statement is not rendered
ineffective if, after the financing statement is filed, the information provided in the financing statement becomes seriously misleading under RCW 62A.9A-506.
(c) Change in debtor's name. If a debtor so changes its
name that a filed financing statement becomes seriously misleading under RCW 62A.9A-506:
(1) The financing statement is effective to perfect a security interest in collateral acquired by the debtor before, or
within four months after, the change; and
(2) The financing statement is not effective to perfect a
security interest in collateral acquired by the debtor more
than four months after the change, unless an amendment to
the financing statement which renders the financing statement not seriously misleading is filed within four months
after the change. [2000 c 250 § 9A-507.]
62A.9A-508
62A.9A-508 Effectiveness of financing statement if
new debtor becomes bound by security agreement. (a)
Financing statement naming original debtor. Except as
otherwise provided in this section, a filed financing statement
naming an original debtor is effective to perfect a security
interest in collateral in which a new debtor has or acquires
rights to the extent that the financing statement would have
been effective had the original debtor acquired rights in the
collateral.
(2004 Ed.)
62A.9A-509
(b) Financing statement becoming seriously misleading. If the difference between the name of the original debtor
and that of the new debtor causes a filed financing statement
that is effective under subsection (a) of this section to be seriously misleading under RCW 62A.9A-506:
(1) The financing statement is effective to perfect a security interest in collateral acquired by the new debtor before,
and within four months after, the new debtor becomes bound
under RCW 62A.9A-203(d); and
(2) The financing statement is not effective to perfect a
security interest in collateral acquired by the new debtor
more than four months after the new debtor becomes bound
under RCW 62A.9A-203(d) unless an initial financing statement providing the name of the new debtor is filed before the
expiration of that time.
(c) When section not applicable. This section does not
apply to collateral as to which a filed financing statement
remains effective against the new debtor under RCW
62A.9A-507(a). [2000 c 250 § 9A-508.]
62A.9A-509
62A.9A-509 Persons entitled to file a record. (a) Person entitled to file record. A person may file an initial
financing statement, amendment that adds collateral covered
by a financing statement, or amendment that adds a debtor to
a financing statement only if:
(1) The debtor authorizes the filing in an authenticated
record or pursuant to subsection (b) or (c) of this section; or
(2) The person holds an agricultural lien that has become
effective at the time of filing and the financing statement covers only collateral in which the person holds an agricultural
lien.
(b) Security agreement as authorization. By authenticating or becoming bound as debtor by a security agreement,
a debtor or new debtor authorizes the filing of an initial
financing statement, and an amendment, covering:
(1) The collateral described in the security agreement;
and
(2) Property that becomes collateral under RCW
62A.9A-315(a)(2), whether or not the security agreement
expressly covers proceeds.
(c) Acquisition of collateral as authorization. By
acquiring collateral in which a security interest or agricultural
lien continues under RCW 62A.9A-315(a)(1), a debtor
authorizes the filing of an initial financing statement, and an
amendment, covering the collateral and property that
becomes collateral under RCW 62A.9A-315(a)(2).
(d) Person entitled to file certain amendments. A person may file an amendment other than an amendment that
adds collateral covered by a financing statement or an amendment that adds a debtor to a financing statement only if:
(1) The secured party of record authorizes the filing; or
(2) The amendment is a termination statement for a
financing statement as to which the secured party of record
has failed to file or send a termination statement as required
by RCW 62A.9A-513 (a) or (c), the debtor authorizes the filing, and the termination statement indicates that the debtor
authorized it to be filed.
(e) Multiple secured parties of record. If there is more
than one secured party of record for a financing statement,
each secured party of record may authorize the filing of an
[Title 62A RCW—page 143]
62A.9A-510
Title 62A RCW: Uniform Commercial Code
amendment under subsection (d) of this section. [2001 c 32 §
36; 2000 c 250 § 9A-509.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-510
62A.9A-510 Effectiveness of filed record. (a) Filed
record effective if authorized. A filed record is effective
only to the extent that it was filed by a person that may file it
under RCW 62A.9A-509.
(b) Authorization by one secured party of record. A
record authorized by one secured party of record does not
affect the financing statement with respect to another secured
party of record.
(c) Continuation statement not timely filed. A continuation statement that is not filed within the six-month period
prescribed by RCW 62A.9A-515(d) is ineffective. [2000 c
250 § 9A-510.]
62A.9A-511
62A.9A-511 Secured party of record. (a) Secured
party of record. A secured party of record with respect to a
financing statement is a person whose name is provided as
the name of the secured party or a representative of the
secured party in an initial financing statement that has been
filed. If an initial financing statement is filed under RCW
62A.9A-514(a), the assignee named in the initial financing
statement is the secured party of record with respect to the
financing statement.
(b) Amendment naming secured party of record. If
an amendment of a financing statement which provides the
name of a person as a secured party or a representative of a
secured party is filed, the person named in the amendment is
a secured party of record. If an amendment is filed under
RCW 62A.9A-514(b), the assignee named in the amendment
is a secured party of record.
(c) Amendment deleting secured party of record. A
person remains a secured party of record until the filing of an
amendment of the financing statement which deletes the person. [2000 c 250 § 9A-511.]
62A.9A-512
62A.9A-512 Amendment of financing statement. (a)
Amendment of information in financing statement. Subject to RCW 62A.9A-509, a person may add or delete collateral covered by, continue or terminate the effectiveness of,
or, subject to subsection (e) of this section, otherwise amend
the information provided in, a financing statement by filing
an amendment that:
(1) Identifies, by its file number, the initial financing
statement to which the amendment relates; and
(2) If the amendment relates to an initial financing statement filed or recorded in a filing office described in RCW
62A.9A-501(a)(1), provides the information specified in
RCW 62A.9A-502(b).
(b) Period of effectiveness not affected. Except as otherwise provided in RCW 62A.9A-515, the filing of an
amendment does not extend the period of effectiveness of the
financing statement.
(c) Effectiveness of amendment adding collateral. A
financing statement that is amended by an amendment that
adds collateral is effective as to the added collateral only
from the date of the filing of the amendment.
[Title 62A RCW—page 144]
(d) Effectiveness of amendment adding debtor. A
financing statement that is amended by an amendment that
adds a debtor is effective as to the added debtor only from the
date of the filing of the amendment.
(e) Certain amendments ineffective. An amendment is
ineffective to the extent it:
(1) Purports to delete all debtors and fails to provide the
name of a debtor to be covered by the financing statement; or
(2) Purports to delete all secured parties of record and
fails to provide the name of a new secured party of record.
[2000 c 250 § 9A-512.]
62A.9A-513 Termination statement. (a) Consumer
goods. A secured party shall cause the secured party of
record for a financing statement to file a termination statement for the financing statement if the financing statement
covers consumer goods and:
(1) There is no obligation secured by the collateral covered by the financing statement and no commitment to make
an advance, incur an obligation, or otherwise give value; or
(2) The debtor did not authorize the filing of the initial
financing statement.
(b) Time for compliance with subsection (a) of this
section. To comply with subsection (a) of this section, a
secured party shall cause the secured party of record to file
the termination statement:
(1) Within one month after there is no obligation secured
by the collateral covered by the financing statement and no
commitment to make an advance, incur an obligation, or otherwise give value; or
(2) If earlier, within twenty days after the secured party
receives an authenticated demand from a debtor.
(c) Other collateral. In cases not governed by subsection (a) of this section, within twenty days after a secured
party receives an authenticated demand from a debtor, the
secured party shall cause the secured party of record for a
financing statement to send to the debtor a termination statement for the financing statement or file the termination statement in the filing office if:
(1) Except in the case of a financing statement covering
accounts or chattel paper that has been sold or goods that are
the subject of a consignment, there is no obligation secured
by the collateral covered by the financing statement and no
commitment to make an advance, incur an obligation, or otherwise give value;
(2) The financing statement covers accounts or chattel
paper that has been sold but as to which the account debtor or
other person obligated has discharged its obligation;
(3) The financing statement covers goods that were the
subject of a consignment to the debtor but are not in the
debtor's possession; or
(4) The debtor did not authorize the filing of the initial
financing statement.
(d) Effect of filing termination statement. Except as
otherwise provided in RCW 62A.9A-510, upon the filing of a
termination statement with the filing office, the financing
statement to which the termination statement relates ceases to
be effective. Except as otherwise provided in RCW 62A.9A510, for purposes of RCW 62A.9A-519(g), 62A.9A-522(a),
and 62A.9A-523(c), the filing with the filing office of a termination statement relating to a financing statement that indi62A.9A-513
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
cates that the debtor is a transmitting utility also causes the
effectiveness of the financing statement to lapse. [2001 c 32
§ 37; 2000 c 250 § 9A-513.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-514
62A.9A-514 Assignment of powers of secured party
of record. (a) Assignment reflected on initial financing
statement. Except as otherwise provided in subsection (c) of
this section, an initial financing statement may reflect an
assignment of all of the secured party's power to authorize an
amendment to the financing statement by providing the name
and mailing address of the assignee as the name and address
of the secured party.
(b) Assignment of filed financing statement. Except as
otherwise provided in subsection (c) of this section, a secured
party of record may assign of record all or part of its power to
authorize an amendment to a financing statement by filing in
the filing office an amendment of the financing statement
which:
(1) Identifies, by its file number, the initial financing
statement to which it relates;
(2) Provides the name of the assignor; and
(3) Provides the name and mailing address of the
assignee.
(c) Assignment of record of mortgage. An assignment
of record of a security interest in a fixture covered by a record
of a mortgage which is effective as a financing statement
filed as a fixture filing under RCW 62A.9A-502(c) may be
made only by an assignment of record of the mortgage in the
manner provided by law of this state other than the Uniform
Commercial Code. [2000 c 250 § 9A-514.]
62A.9A-515
62A.9A-515 Duration and effectiveness of financing
statement; effect of lapsed financing statement. (a) Fiveyear effectiveness. Except as otherwise provided in subsections (b), (e), (f), and (g) of this section, a filed financing
statement is effective for a period of five years after the date
of filing.
(b) [Reserved]
(c) Lapse and continuation of financing statement.
The effectiveness of a filed financing statement lapses on the
expiration of the period of its effectiveness unless before the
lapse a continuation statement is filed pursuant to subsection
(d) of this section. Upon lapse, a financing statement ceases
to be effective and any security interest or agricultural lien
that was perfected by the financing statement becomes unperfected, unless the security interest is perfected otherwise. If
the security interest or agricultural lien becomes unperfected
upon lapse, it is deemed never to have been perfected as
against a purchaser of the collateral for value.
(d) When continuation statement may be filed. A continuation statement may be filed only within six months
before the expiration of the five-year period specified in subsection (a) of this section or the thirty-year period specified in
subsection (b) of this section, whichever is applicable.
(e) Effect of filing continuation statement. Except as
otherwise provided in RCW 62A.9A-510, upon timely filing
of a continuation statement, the effectiveness of the initial
financing statement continues for a period of five years commencing on the day on which the financing statement would
(2004 Ed.)
62A.9A-516
have become ineffective in the absence of the filing. Upon
the expiration of the five-year period, the financing statement
lapses in the same manner as provided in subsection (c) of
this section, unless, before the lapse, another continuation
statement is filed pursuant to subsection (d) of this section.
Succeeding continuation statements may be filed in the same
manner to continue the effectiveness of the initial financing
statement.
(f) Transmitting utility financing statement. If a
debtor is a transmitting utility and a filed financing statement
so indicates, the financing statement is effective until a termination statement is filed.
(g) Record of mortgage as financing statement. A
record of a mortgage that is effective as a financing statement
filed as a fixture filing under RCW 62A.9A-502(c) remains
effective as a financing statement filed as a fixture filing until
the mortgage is released or satisfied of record or its effectiveness otherwise terminates as to the real property. [2000 c 250
§ 9A-515.]
62A.9A-516 What constitutes filing; effectiveness of
filing. (a) What constitutes filing. Except as otherwise provided in subsection (b) of this section, communication of a
record to a filing office and tender of the filing fee or acceptance of the record by the filing office constitutes filing.
(b) Refusal to accept record; filing does not occur.
Filing does not occur with respect to a record that a filing
office refuses to accept because:
(1) The record is not communicated by a method or
medium of communication authorized by the filing office;
(2) An amount equal to or greater than the applicable filing fee is not tendered or, in the case of a filing office
described in RCW 62A.9A-501(a)(1), an amount equal to the
applicable filing fee is not tendered;
(3) The filing office is unable to index the record
because:
(A) In the case of an initial financing statement, the
record does not provide a name for the debtor;
(B) In the case of an amendment or correction statement,
the record:
(i) Does not identify the initial financing statement as
required by RCW 62A.9A-512 or 62A.9A-518, as applicable; or
(ii) Identifies an initial financing statement whose effectiveness has lapsed under RCW 62A.9A-515;
(C) In the case of an initial financing statement that provides the name of a debtor identified as an individual or an
amendment that provides a name of a debtor identified as an
individual which was not previously provided in the financing statement to which the record relates, the record does not
identify the debtor's last name; or
(D) In the case of a record filed or recorded in the filing
office described in RCW 62A.9A-501(a)(1), the record does
not provide a name for the debtor or a sufficient description
of the real property to which the record relates;
(4) In the case of an initial financing statement or an
amendment that adds a secured party of record, the record
does not provide a name and mailing address for the secured
party of record;
(5) In the case of an initial financing statement or an
amendment that provides a name of a debtor which was not
62A.9A-516
[Title 62A RCW—page 145]
62A.9A-517
Title 62A RCW: Uniform Commercial Code
previously provided in the financing statement to which the
amendment relates, the record does not:
(A) Provide a mailing address for the debtor;
(B) Indicate whether the debtor is an individual or an
organization; or
(C) If the financing statement indicates that the debtor is
an organization, provide:
(i) A type of organization for the debtor;
(ii) A jurisdiction of organization for the debtor; or
(iii) An organizational identification number for the
debtor or indicate that the debtor has none;
(6) In the case of an assignment reflected in an initial
financing statement under RCW 62A.9A-514(a) or an
amendment filed under RCW 62A.9A-514(b), the record
does not provide a name and mailing address for the assignee;
or
(7) In the case of a continuation statement, the record is
not filed within the six-month period prescribed by RCW
62A.9A-515(d).
(c) Rules applicable to subsection (b) of this section.
For purposes of subsection (b) of this section:
(1) A record does not provide information if the filing
office is unable to read or decipher the information; and
(2) A record that does not indicate that it is an amendment or identify an initial financing statement to which it
relates, as required by RCW 62A.9A-512, 62A.9A-514, or
62A.9A-518, is an initial financing statement.
(d) Refusal to accept record; record effective as filed
record. A record that is communicated to the filing office
with tender of the filing fee, but which the filing office
refuses to accept for a reason other than one set forth in subsection (b) of this section, is effective as a filed record except
as against a purchaser of the collateral which gives value in
reasonable reliance upon the absence of the record from the
files. [2001 c 32 § 38; 2000 c 250 § 9A-516.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-517
62A.9A-517 Effect of indexing errors. The failure of
the filing office to index a record correctly does not affect the
effectiveness of the filed record. [2000 c 250 § 9A-517.]
62A.9A-518
62A.9A-518 Claim concerning inaccurate or wrongfully filed record. (a) Correction statement. A person may
file in the filing office a correction statement with respect to
a record indexed there under the person's name if the person
believes that the record is inaccurate or was wrongfully filed.
(b) Sufficiency of correction statement. A correction
statement must:
(1) Identify the record to which it relates by the file number assigned to the initial financing statement to which the
record relates;
(2) Indicate that it is a correction statement; and
(3) Provide the basis for the person's belief that the
record is inaccurate and indicate the manner in which the person believes the record should be amended to cure any inaccuracy or provide the basis for the person's belief that the
record was wrongfully filed.
(c) Record not affected by correction statement. The
filing of a correction statement does not affect the effective[Title 62A RCW—page 146]
ness of an initial financing statement or other filed record.
[2000 c 250 § 9A-518.]
62A.9A-519
62A.9A-519 Numbering, maintaining, and indexing
records; communicating information provided in
records. (a) Filing office duties. For each record filed in a
filing office, the filing office shall:
(1) Assign a unique number to the filed record;
(2) Create a record that bears the number assigned to the
filed record and the date and time of filing;
(3) Maintain the filed record for public inspection; and
(4) Index the filed record in accordance with subsections
(c), (d), and (e) of this section.
(b) File number. A file number assigned after January
1, 2002, must include a digit that:
(1) Is mathematically derived from or related to the other
digits of the file number; and
(2) Aids the filing office in determining whether a number communicated as the file number includes a single-digit
or transpositional error.
(c) Indexing: General. Except as otherwise provided in
subsections (d) and (e) of this section, the filing office shall:
(1) Index an initial financing statement according to the
name of the debtor and index all filed records relating to the
initial financing statement in a manner that associates with
one another an initial financing statement and all filed
records relating to the initial financing statement; and
(2) Index a record that provides a name of a debtor which
was not previously provided in the financing statement to
which the record relates also according to the name that was
not previously provided.
(d) Indexing: Real-property-related financing statement. If a financing statement is filed as a fixture filing or
covers as-extracted collateral or timber to be cut, it must be
filed for record and the filing office shall index it:
(1) Under the names of the debtor and of each owner of
record shown on the financing statement as if they were the
mortgagors under a mortgage of the real property described;
and
(2) To the extent that the law of this state provides for
indexing of records of mortgages under the name of the mortgagee, under the name of the secured party as if the secured
party were the mortgagee thereunder, or, if indexing is by
description, as if the financing statement were a record of a
mortgage of the real property described.
(e) Indexing: Real-property-related assignment. If a
financing statement is filed as a fixture filing or covers asextracted collateral or timber to be cut, the filing office shall
index an assignment filed under RCW 62A.9A-514(a) or an
amendment filed under RCW 62A.9A-514(b):
(1) Under the name of the assignor as grantor; and
(2) To the extent that the law of this state provides for
indexing a record of the assignment of a mortgage under the
name of the assignee, under the name of the assignee.
(f) Retrieval and association capability. The filing
office shall maintain a capability:
(1) To retrieve a record by the name of the debtor and by
the file number assigned to the initial financing statement to
which the record relates; and
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
(2) To associate and retrieve with one another an initial
financing statement and each filed record relating to the initial financing statement.
(g) Removal of debtor's name. The filing office may
not remove a debtor's name from the index until one year
after the effectiveness of a financing statement naming the
debtor lapses under RCW 62A.9A-515 with respect to all
secured parties of record.
(h) Timeliness of filing office performance. The filing
office shall perform the acts required by subsections (a)
through (e) of this section at the time and in the manner prescribed by filing-office rule, but not later than two business
days after the filing office receives the record in question.
(i) Inapplicability to real-property-related filing
office. Subsections (b) and (h) of this section do not apply to
a filing office described in RCW 62A.9A-501(a)(1). [2000 c
250 § 9A-519.]
62A.9A-520 Acceptance and refusal to accept record.
(a) Mandatory refusal to accept record. The filing office
described in RCW 62A.9A-501(a)(2) shall refuse to accept a
record for filing for a reason set forth in RCW
62A.9A-516(b). A filing office described in RCW 62A.9A501(a)(1) shall refuse to accept a record for filing for a reason
set forth in RCW 62A.9A-516(b) (1) through (4) and any filing office may refuse to accept a record for filing only for a
reason set forth in RCW 62A.9A-516(b).
(b) Communication concerning refusal. If a filing
office refuses to accept a record for filing, it shall communi62A.9A-520
62A.9A-521
cate to the person that presented the record the fact of and reason for the refusal and the date and time the record would
have been filed had the filing office accepted it. The communication must be made at the time and in the manner prescribed by filing-office rule but, in the case of a filing office
described in RCW 62A.9A-501(a)(2), in no event more than
two business days after the filing office receives the record.
(c) When filed financing statement effective. A filed
financing statement satisfying RCW 62A.9A-502 (a) and (b)
is effective, even if the filing office is required to refuse to
accept it for filing under subsection (a) of this section. However, RCW 62A.9A-338 applies to a filed financing statement providing information described in RCW
62A.9A-516(b)(5) which is incorrect at the time the financing
statement is filed.
(d) Separate application to multiple debtors. If a
record communicated to a filing office provides information
that relates to more than one debtor, this part applies as to
each debtor separately. [2001 c 32 § 39; 2000 c 250 § 9A520.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-521
62A.9A-521 Uniform form of written financing statement and amendment. (a) Initial financing statement
form. A filing office that accepts written records may not
refuse to accept a written initial financing statement in the
following form and format except for a reason set forth in
RCW 62A.9A-516(b):
UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A.
NAME & PHONE OF CONTACT AT FILER [optional]
B.
SEND ACKNOWLEDGMENT TO: (Name and Address)
THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1.
DEBTOR'S EXACT FULL LEGAL NAME - insert only one debtor name (1a or 1b) - do not abbreviate or combine names
1a.
ORGANIZATION'S NAME
1b.
INDIVIDUAL'S LAST NAME
OR
1c.
MAILING ADDRESS
1d. TAX ID #:
SSN OR EIN
2.
FIRST NAME
CITY
MIDDLE NAME
SUFFIX
STATE
POSTAL CODE
COUNTRY
1e. TYPE OF
ORGANIZATION
ADD'L INFO RE
ORGANIZATION
DEBTOR
1f. JURISDICTION OF
ORGANIZATION
1g. ORGANIZATIONAL
ID #, If any
â NONE
ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME - insert only one debtor name (2a or 2b) - do not abbreviate or combine names
2a.
ORGANIZATION'S NAME
2b.
INDIVIDUAL'S LAST NAME
OR
2c.
MAILING ADDRESS
2d. TAX ID #:
SSN OR EIN
3.
ADD'L INFO RE
ORGANIZATION
DEBTOR
FIRST NAME
CITY
MIDDLE NAME
SUFFIX
STATE
POSTAL CODE
COUNTRY
2e. TYPE OF
ORGANIZATION
2f. JURISDICTION OF
ORGANIZATION
2g. ORGANIZATIONAL
ID #, If any
â NONE
SECURED PARTY'S NAME (or NAME of TOTAL ASSIGNEE of ASSIGNOR S/P) - insert only one secured party name (3a or 3b)
3a.
ORGANIZATION'S NAME
OR
(2004 Ed.)
[Title 62A RCW—page 147]
62A.9A-521
3b.
Title 62A RCW: Uniform Commercial Code
INDIVIDUAL'S LAST NAME
FIRST NAME
5.
ALTERNATIVE DESIGNATION [if applicable]:
COUNTRY
â CONSIGNEE/CONSIGNOR
â AG. LIEN
â NON-UCC FILING
This FINANCING STATEMENT covers the following collateral:
â BAILEE/BAILOR
CITY
POSTAL CODE
â LESSEE/LESSOR
MAILING ADDRESS
4.
SUFFIX
STATE
3c.
MIDDLE NAME
â SELLER/BUYER
6.
â This FINANCING STATEMENT is to be filed [for record] (or recorded) in the REAL ESTATE RECORDS. Attach Addendum [if applicable]
7.
Check to REQUEST SEARCH REPORT(S) on Debtor(s)
â All Debtors
â Debtor 1
â Debtor 2
[Additional Fee] [optional]
8.
OPTIONAL FILER REFERENCE DATA
NATIONAL UCC FINANCING STATEMENT (FORM UCC1) (REV. 07/29/98)
UCC FINANCING STATEMENT ADDENDUM
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
9.
NAME OF FIRST DEBTOR (1a or 1b) ON RELATED FINANCING STATEMENT
9a.
ORGANIZATION'S NAME
9b.
INDIVIDUAL'S LAST NAME
OR
10.
FIRST NAME
MIDDLE NAME
SUFFIX
MISCELLANEOUS:
THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
11.
ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME - insert only one name (11a or 11b) - do not abbreviate or combine names
11a.
ORGANIZATION'S NAME
11b.
INDIVIDUAL'S LAST NAME
OR
11c.
MAILING ADDRESS
11d. TAX ID #:
SSN OR EIN
12.
FIRST NAME
ADD'L INFO RE
ORGANIZATION
DEBTOR
MIDDLE NAME
SUFFIX
STATE
CITY
POSTAL CODE
COUNTRY
11e. TYPE OF
ORGANIZATION
11f. JURISDICTION OF
ORGANIZATION
11g. ORGANIZATIONAL
ID #, If any
â NONE
â ADDITIONAL SECURED PARTY'S or â ASSIGNOR S/P'S NAME - insert only one name (12a or 12b)
12a.
ORGANIZATION'S NAME
12b.
INDIVIDUAL'S LAST NAME
OR
FIRST NAME
CITY
MIDDLE NAME
SUFFIX
STATE
POSTAL CODE
COUNTRY
12c.
MAILING ADDRESS
13.
This FINANCING STATEMENT covers â timber to be cut or
â as-extracted collateral, or is filed as a â fixture filing.
14.
Description of real estate:
15.
Name and address of a RECORD OWNER of above-described real estate
16. Additional collateral description:
(if Debtor does not have a record interest):
17. Check only if applicable and check only one box.
Debtor is a â Trust or â Trustee acting with respect
to property held in trust or â Decedent's Estate
18. Check only if applicable and check only one box.
â Debtor is a TRANSMITTING UTILITY
â Filed in connection with a Manufactured-Home
Transaction - effective 30 years
â Filed in connection with a Public-Finance
Transaction - effective 30 years
NATIONAL UCC FINANCING STATEMENT ADDENDUM (FORM UCC1Ad) (REV. 07/29/98)
(b) Amendment form. A filing office that accepts written records may not refuse to accept a written record in the
[Title 62A RCW—page 148]
following form and format except for a reason set forth in
RCW 62A.9A-516(b):
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
62A.9A-521
UCC FINANCING STATEMENT AMENDMENT
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
A.
NAME & PHONE OF CONTACT AT FILER [optional]
B.
SEND ACKNOWLEDGMENT TO: (Name and Address)
THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
1a.
INITIAL FINANCING STATEMENT FILE #
1b. This FINANCING STATEMENT AMENDMENT is
to be filed [for record] (or recorded) in the
â REAL ESTATE RECORDS.
2.
â TERMINATION: Effectiveness of the Financing Statement identified above is terminated with respect to security interest(s) of the Secured Party authorizing this Termination Statement.
3.
â CONTINUATION: Effectiveness of the Financing Statement identified above with respect to security interest(s) of the Secured Party authorizing this Continuation Statement is continued for the additional period provided by applicable law.
4.
â ASSIGNMENT (full or partial): Give name of assignee in item 7a or 7b and address of assignee in item 7c; and also give name of assignor in item 9.
5.
AMENDMENT (PARTY INFORMATION): This Amendment affects â Debtor or â Secured Party of record. Check only one of these two boxes.
Also check one of the following three boxes and provide appropriate information in items 6 and/or 7.
â CHANGE name and/or address: Give current record name in â DELETE name: Give record name to be deleted in
item 6a or 6b; also give new name (if name changed) in item 7a item 6a or 6b.
or 7b and/or new address (if address change) in item 7c.
6.
â ADD name: Complete item 7a or 7b, and also item
7c; also complete items 7d-7g (if applicable).
CURRENT RECORD INFORMATION:
6a.
ORGANIZATION'S NAME
6b.
INDIVIDUAL'S LAST NAME
OR
7.
FIRST NAME
MIDDLE NAME
SUFFIX
FIRST NAME
MIDDLE NAME
SUFFIX
CHANGED (NEW) OR ADDED INFORMATION:
7a.
ORGANIZATION'S NAME
7b.
INDIVIDUAL'S LAST NAME
OR
7c.
MAILING ADDRESS
7d. TAX ID #:
SSN OR EIN
CITY
ADD'L INFO RE
ORGANIZATION
DEBTOR
STATE
7e. TYPE OF
ORGANIZATION
POSTAL CODE
7f. JURISDICTION OF
ORGANIZATION
COUNTRY
7g. ORGANIZATIONAL
ID #, If any
â NONE
8.
AMENDMENT (COLLATERAL CHANGE): check only one box.
Describe collateral â deleted or â added, or give entire â restated collateral description, or describe collateral â assigned.
9.
NAME OF SECURED PARTY OF RECORD AUTHORIZING THIS AMENDMENT (name of assignor, if this is an Assignment). If this is an Amendment authorized by
a Debtor which adds collateral or adds the authorizing Debtor, or if this is a Termination authorized by a Debtor, check here â and enter name of DEBTOR authorizing this
Amendment.
9a.
ORGANIZATION'S NAME
9b.
INDIVIDUAL'S LAST NAME
OR
10.
FIRST NAME
MIDDLE NAME
SUFFIX
OPTIONAL FILER REFERENCE DATA
NATIONAL UCC FINANCING STATEMENT AMENDMENT (FORM UCC3) (REV. 07/29/98)
UCC FINANCING STATEMENT AMENDMENT ADDENDUM
FOLLOW INSTRUCTIONS (front and back) CAREFULLY
11.
INITIAL FINANCING STATEMENT FILE #
(same as item 1a on Amendment form)
12.
NAME OF PARTY AUTHORIZING THIS AMENDMENT
(same as item 9 on Amendment form)
12a.
ORGANIZATION'S NAME
OR
(2004 Ed.)
[Title 62A RCW—page 149]
62A.9A-522
12b.
13.
Title 62A RCW: Uniform Commercial Code
INDIVIDUAL'S LAST NAME
FIRST NAME
MIDDLE NAME
SUFFIX
Use this space for additional information
THE ABOVE SPACE IS FOR FILING OFFICE USE ONLY
NATIONAL UCC FINANCING STATEMENT AMENDMENT ADDENDUM (FORM UCC3Ad) (REV. 07/29/98)
[2000 c 250 § 9A-521.]
62A.9A-522
62A.9A-522 Maintenance and destruction of records.
(a) Post-lapse maintenance and retrieval of information.
The filing office shall maintain a record of the information
provided in a filed financing statement for at least one year
after the effectiveness of the financing statement has lapsed
under RCW 62A.9A-515 with respect to all secured parties of
record. The record must be retrievable by using the name of
the debtor and by using the file number assigned to the initial
financing statement to which the record relates.
(b) Destruction of written records. Except to the
extent that a statute governing disposition of public records
provides otherwise, the filing office immediately may
destroy any written record evidencing a financing statement.
However, if the filing office destroys a written record, it shall
maintain another record of the financing statement which
complies with subsection (a) of this section. [2000 c 250 §
9A-522.]
62A.9A-523
62A.9A-523 Information from filing office; sale or
license of records. (a) Acknowledgment of filing written
record. If a person that files a written record requests an
acknowledgment of the filing, the filing office shall send to
the person an image of the record showing the number
assigned to the record pursuant to RCW 62A.9A-519(a)(1)
and the date and time of the filing of the record. However, if
the person furnishes a copy of the record to the filing office,
the filing office may instead:
(1) Note upon the copy the number assigned to the
record pursuant to RCW 62A.9A-519(a)(1) and the date and
time of the filing of the record; and
(2) Send the copy to the person.
(b) Acknowledgment of filing other record. If a person files a record other than a written record, the filing office
shall communicate to the person an acknowledgment that
provides:
(1) The information in the record;
(2) The number assigned to the record pursuant to RCW
62A.9A-519(a)(1); and
(3) The date and time of the filing of the record.
(c) Communication of requested information. The filing office shall communicate or otherwise make available in
a record the following information to any person that requests
it:
(1) Whether there is on file on a date and time specified
by the filing office, but not a date earlier than three business
days before the filing office receives the request, any financing statement that:
(A) Designates a particular debtor or, if the request so
states, designates a particular debtor at the address specified
in the request;
(B) Has not lapsed under RCW 62A.9A-515 with respect
to all secured parties of record; and
[Title 62A RCW—page 150]
(C) If the request so states, has lapsed under RCW
62A.9A-515 and a record of which is maintained by the filing
office under RCW 62A.9A-522(a);
(2) The date and time of filing of each financing statement; and
(3) The information provided in each financing statement.
(d) Medium for communicating information. In complying with its duty under subsection (c) of this section, the
filing office may communicate information in any medium.
However, if requested, the filing office shall communicate
information by issuing a record that can be admitted into evidence in the courts of this state without extrinsic evidence of
its authenticity.
(e) Timeliness of filing office performance. The filing
office described in RCW 62A.9A-501(a)(2) shall perform the
acts required by subsections (a) through (d) of this section at
the time and in the manner prescribed by filing-office rule,
but not later than two business days after the filing office
receives the request.
(f) Public availability of records. At least weekly, the
filing office described in RCW 62A.9A-501(a)(2) shall offer
to sell or license to the public on a nonexclusive basis, in
bulk, copies of all records filed in it under this part, in every
medium from time to time available to the filing office. If
information provided pursuant to this section includes a list
of individuals, disclosure of the list is specifically authorized.
[2001 c 32 § 40; 2000 c 250 § 9A-523.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-524
62A.9A-524 Delay by filing office. Delay by the filing
office beyond a time limit prescribed by this part is excused
if:
(1) The delay is caused by interruption of communication or computer facilities, war, emergency conditions, failure of equipment, or other circumstances beyond control of
the filing office; and
(2) The filing office exercises reasonable diligence under
the circumstances. [2000 c 250 § 9A-524.]
62A.9A-525
62A.9A-525 Fees. (a) Filing with department of
licensing. Except as otherwise provided in subsection (b) or
(e) of this section, the fee for filing and indexing a record
under this part is the fee set by department of licensing rule
pursuant to subsection (f) of this section. Without limitation,
different fees may be charged for:
(1) A record that is communicated in writing and consists of one or two pages;
(2) A record that is communicated in writing and consists of more than two pages, which fee may be a multiple of
the fee described in (1) of this subsection; and
(3) A record that is communicated by another medium
authorized by department of licensing rule, which fee may be
a fraction of the fee described in (1) of this subsection.
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
(b) Filing with other filing offices. Except as otherwise
provided in subsection (e) of this section, the fee for filing
and indexing a record under this part that is filed in a filing
office described in RCW 62A.9A-501(a)(1) is the fee that
would otherwise be applicable to the recording of a mortgage
in that filing office, as set forth in RCW 36.18.010.
(c) Number of names. The number of names required
to be indexed does not affect the amount of the fee in subsections (a) and (b) of this section.
(d) Response to information request. The fee for
responding to a request for information from a filing office,
including for issuing a certificate showing, or otherwise communicating, whether there is on file any financing statement
naming a particular debtor, is the fee set by department of
licensing rule pursuant to subsection (f) of this section; provided however, if the request is to a filing office described in
RCW 62A.9A-501(a)(1) and that office charges a different
fee, then that different fee shall apply instead. Without limitation, different fees may be charged:
(1) If the request is communicated in writing;
(2) If the request is communicated by another medium
authorized by filing-office rule; and
(3) If the request is for expedited service.
(e) Record of mortgage. This section does not require a
fee with respect to a record of a mortgage which is effective
as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be
cut under RCW 62A.9A-502(c). However, the recording and
satisfaction fees that otherwise would be applicable to the
record of the mortgage apply.
(f) Filing office rules. The department of licensing shall
by rule set the fees called for in this section for filing with,
and obtaining information from, the department of licensing.
The director shall set fees at a sufficient level to defray the
costs of administering the program. All receipts from fees
collected under this title, except fees for services covered
under RCW 62A.9A-501(a)(1), shall be deposited to the uniform commercial code fund in the state treasury. Moneys in
the fund may be spent only after appropriation and may be
used only to administer the uniform commercial code program.
(g) Transition. This section continues the fee-setting
authority conferred on the department of licensing by former
*RCW 62A.9-409 and nothing herein shall invalidate fees set
by the department of licensing under the authority of former
*RCW 62A.9-409. [2000 c 250 § 9A-525.]
*Reviser's note: RCW 62A.9-409 was repealed by 2000 c 250 § 9A901, effective July 1, 2001.
62A.9A-526
62A.9A-526 Filing-office rules. (a) Adoption of filing-office rules. The department of licensing shall adopt and
publish rules to implement this Article. The filing-office rules
must be:
(1) Consistent with this Article; and
(2) Adopted and published in accordance with chapter
34.05 RCW.
(b) Harmonization of rules. To keep the filing-office
rules and practices of the filing office in harmony with the
rules and practices of filing offices in other jurisdictions that
enact substantially this part, and to keep the technology used
by the filing office compatible with the technology used by
(2004 Ed.)
62A.9A-601
filing offices in other jurisdictions that enact substantially
this part, the department of licensing, so far as is consistent
with the purposes, policies, and provisions of this Article, in
adopting, amending, and repealing filing-office rules, shall:
(1) Consult with filing offices in other jurisdictions that
enact substantially this part; and
(2) Consult the most recent version of the Model Rules
promulgated by the International Association of Corporate
Administrators or any successor organization; and
(3) Take into consideration the rules and practices of,
and the technology used by, filing offices in other jurisdictions that enact substantially this part. [2000 c 250 § 9A526.]
62A.9A-527
62A.9A-527 Duty to report. The department of licensing shall report annually on or before December 31st to the
governor on the operation of the filing office. [2000 c 250 §
9A-527.]
62A.9A-601
62A.9A-601 Rights after default; judicial enforcement; consignor or buyer of accounts, chattel paper, payment intangibles, or promissory notes. (a) Rights of
secured party after default. After default, a secured party
has the rights provided in this part and, except as otherwise
provided in RCW 62A.9A-602, those provided by agreement
of the parties. A secured party:
(1) May reduce a claim to judgment, foreclose, or otherwise enforce the claim, security interest, or agricultural lien
by any available judicial procedure; and
(2) If the collateral is documents, may proceed either as
to the documents or as to the goods they cover.
(b) Rights and duties of secured party in possession or
control. A secured party in possession of collateral or control of collateral under RCW 62A.9A-104, 62A.9A-105,
62A.9A-106, or 62A.9A-107 has the rights and duties provided in RCW 62A.9A-207.
(c) Rights cumulative; simultaneous exercise. The
rights under subsections (a) and (b) of this section are cumulative and may be exercised simultaneously.
(d) Rights of debtor and obligor. Except as otherwise
provided in subsection (g) of this section and RCW
62A.9A-605, after default, a debtor and an obligor have the
rights provided in this part and by agreement of the parties.
(e) Lien of levy after judgment. If a secured party has
reduced its claim to judgment, the lien of any levy that may
be made upon the collateral by virtue of an execution based
upon the judgment relates back to the earliest of:
(1) The date of perfection of the security interest or agricultural lien in the collateral;
(2) The date of filing a financing statement covering the
collateral; or
(3) Any date specified in a statute under which the agricultural lien was created.
(f) Execution sale. A sale pursuant to an execution is a
foreclosure of the security interest or agricultural lien by judicial procedure within the meaning of this section. A secured
party may purchase at the sale and thereafter hold the collateral free of any other requirements of this Article.
(g) Consignor or buyer of certain rights to payment.
Except as otherwise provided in RCW 62A.9A-607(c), this
[Title 62A RCW—page 151]
62A.9A-602
Title 62A RCW: Uniform Commercial Code
part imposes no duties upon a secured party that is a consignor or is a buyer of accounts, chattel paper, payment intangibles, or promissory notes.
(h) Enforcement restrictions. All rights and remedies
provided in this part with respect to promissory notes or an
agreement between an account debtor and a debtor which
relates to a health-care-insurance receivable or a general
intangible, including a contract, permit, license, or franchise,
are subject to RCW 62A.9A-408 to the extent applicable.
[2000 c 250 § 9A-601.]
62A.9A-602
62A.9A-602 Waiver and variance of rights and
duties. Except as otherwise provided in RCW 62A.9A-624,
to the extent that they give rights to an obligor (other than a
secondary obligor) or a debtor and impose duties on a secured
party, the debtor or obligor may not waive or vary the rules
stated in the following listed sections:
(1) RCW 62A.9A-207(b)(4)(C), which deals with use
and operation of the collateral by the secured party;
(2) RCW 62A.9A-210, which deals with requests for an
accounting and requests concerning a list of collateral and
statement of account;
(3) RCW 62A.9A-607(c), which deals with collection
and enforcement of collateral;
(4) RCW 62A.9A-608(a) and 62A.9A-615(c) to the
extent that they deal with application or payment of noncash
proceeds of collection, enforcement, or disposition;
(5) RCW 62A.9A-608(a) and 62A.9A-615(d) to the
extent that they require accounting for or payment of surplus
proceeds of collateral;
(6) RCW 62A.9A-609 to the extent that it imposes upon
a secured party that takes possession of collateral without
judicial process the duty to do so without breach of the peace;
(7) RCW 62A.9A-610(b), 62A.9A-611, 62A.9A-613,
and 62A.9A-614, which deal with disposition of collateral;
(8) [Reserved]
(9) RCW 62A.9A-616, which deals with explanation of
the calculation of a surplus or deficiency;
(10) RCW 62A.9A-620, 62A.9A-621, and 62A.9A-622,
which deal with acceptance of collateral in satisfaction of
obligation;
(11) RCW 62A.9A-623, which deals with redemption of
collateral;
(12) RCW 62A.9A-624, which deals with permissible
waivers; and
(13) RCW 62A.9A-625 and 62A.9A-626, which deal
with the secured party's liability for failure to comply with
this Article. [2000 c 250 § 9A-602.]
62A.9A-604
62A.9A-604 Procedure if security agreement covers
real property, fixtures, or manufactured home. (a)
Enforcement: Personal and real property. If a security
agreement covers both personal and real property, a secured
party may proceed:
(1) Under this part as to the personal property without
prejudicing any rights with respect to the real property; or
(2) As to both the personal property and the real property
in accordance with the rights with respect to the real property,
in which case the other provisions of this part do not apply.
(b) Enforcement: Fixtures. Subject to subsection (c)
of this section, if a security agreement covers goods that are
or become fixtures, a secured party may proceed:
(1) Under this part; or
(2) In accordance with the rights with respect to real
property, in which case the other provisions of this part do not
apply.
(c) Removal of fixtures or manufactured home. Subject to the other provisions of this part, if a secured party
holding a security interest in fixtures or a manufactured home
has priority over all owners and encumbrancers of the real
property, the secured party, after default, may remove the
collateral from the real property.
(d) Injury caused by removal. A secured party that
removes collateral consisting of fixtures or a manufactured
home shall promptly reimburse any encumbrancer or owner
of the real property, other than the debtor, for the cost of
repair of any physical injury caused by the removal. The
secured party need not reimburse the encumbrancer or owner
for any diminution in value of the real property caused by the
absence of the goods removed or by any necessity of replacing them. A person entitled to reimbursement may refuse permission to remove until the secured party gives adequate
assurance for the performance of the obligation to reimburse.
[2000 c 250 § 9A-604.]
62A.9A-605
62A.9A-605 Unknown debtor or secondary obligor.
A secured party does not owe a duty based on its status as
secured party:
(1) To a person that is a debtor or obligor, unless the
secured party knows:
(A) That the person is a debtor or obligor;
(B) The identity of the person; and
(C) How to communicate with the person; or
(2) To a secured party or lienholder that has filed a
financing statement against a person, unless the secured party
knows:
(A) That the person is a debtor; and
(B) The identity of the person. [2000 c 250 § 9A-605.]
62A.9A-603
62A.9A-603 Agreement on standards concerning
rights and duties. (a) Agreed standards. The parties may
determine by agreement the standards measuring the fulfillment of the rights of a debtor or obligor and the duties of a
secured party under a rule stated in RCW 62A.9A-602 if the
standards are not manifestly unreasonable.
(b) Agreed standards inapplicable to breach of peace.
Subsection (a) of this section does not apply to the duty under
RCW 62A.9A-609 to refrain from breaching the peace.
[2000 c 250 § 9A-603.]
[Title 62A RCW—page 152]
62A.9A-606
62A.9A-606 Time of default for agricultural lien. For
purposes of this part, a default occurs in connection with an
agricultural lien at the time the secured party becomes entitled to enforce the lien in accordance with the statute under
which it was created. [2000 c 250 § 9A-606.]
62A.9A-607
62A.9A-607 Collection and enforcement by secured
party. (a) Collection and enforcement generally. If so
agreed, and in any event after default, a secured party:
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
(1) May notify an account debtor or other person obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party;
(2) May take any proceeds to which the secured party is
entitled under RCW 62A.9A-315;
(3) May enforce the obligations of an account debtor or
other person obligated on collateral and exercise the rights of
the debtor with respect to the obligation of the account debtor
or other person obligated on collateral to make payment or
otherwise render performance to the debtor, and with respect
to any property that secures the obligations of the account
debtor or other person obligated on the collateral;
(4) If it holds a security interest in a deposit account perfected by control under RCW 62A.9A-104(a)(1), may apply
the balance of the deposit account to the obligation secured
by the deposit account; and
(5) If it holds a security interest in a deposit account perfected by control under RCW 62A.9A-104(a) (2) or (3), may
instruct the bank to pay the balance of the deposit account to
or for the benefit of the secured party.
(b) Nonjudicial enforcement of mortgage. If necessary to enable a secured party to exercise, under subsection
(a)(3) of this section, the right of a debtor to enforce a mortgage nonjudicially, the secured party may record in the office
in which a record of the mortgage is recorded the secured
party's sworn affidavit stating that:
(1) Default has occurred under the security agreement
that creates or provides for a security interest in the obligations secured by the mortgage;
(2) A copy of the security agreement is attached to the
affidavit; and
(3) The secured party is entitled to enforce the mortgage
nonjudicially.
If the secured party's affidavit and attached copy of the
security agreement in the form prescribed by chapter 65.04
RCW are presented with the applicable fee to the office in
which a record of the mortgage is recorded, the affidavit and
attached copy of the security agreement shall be recorded
pursuant to RCW 65.04.030(3).
(c) Commercially reasonable collection and enforcement. A secured party shall proceed in a commercially reasonable manner if the secured party:
(1) Undertakes to collect from or enforce an obligation
of an account debtor or other person obligated on collateral;
and
(2) Is entitled to charge back uncollected collateral or
otherwise to full or limited recourse against the debtor or a
secondary obligor.
(d) Expenses of collection and enforcement. A
secured party may deduct from the collections made pursuant
to subsection (c) of this section reasonable expenses of collection and enforcement, including reasonable attorneys' fees
and legal expenses incurred by the secured party.
(e) Duties to secured party not affected. This section
does not determine whether an account debtor, bank, or other
person obligated on collateral owes a duty to a secured party.
[2000 c 250 § 9A-607.]
62A.9A-608 Application of proceeds of collection or
enforcement; liability for deficiency and right to surplus.
(a) Application of proceeds, surplus, and deficiency if
62A.9A-608
(2004 Ed.)
62A.9A-609
obligation secured. If a security interest or agricultural lien
secures payment or performance of an obligation, the following rules apply:
(1) A secured party shall apply or pay over for application the cash proceeds of collection or enforcement under
RCW 62A.9A-607 in the following order to:
(A) The reasonable expenses of collection and enforcement and, to the extent provided for by agreement and not
prohibited by law, reasonable attorneys' fees and legal
expenses incurred by the secured party;
(B) The satisfaction of obligations secured by the security interest or agricultural lien under which the collection or
enforcement is made; and
(C) The satisfaction of obligations secured by any subordinate security interest in or other lien on the collateral subject to the security interest or agricultural lien under which
the collection or enforcement is made if the secured party
receives an authenticated demand for proceeds before distribution of the proceeds is completed.
(2) If requested by a secured party, a holder of a subordinate security interest or other lien shall furnish reasonable
proof of the interest or lien within a reasonable time. Unless
the holder complies, the secured party need not comply with
the holder's demand under (1)(C) of this subsection.
(3) A secured party need not apply or pay over for application noncash proceeds of collection and enforcement under
RCW 62A.9A-607 unless the failure to do so would be commercially unreasonable. A secured party that applies or pays
over for application noncash proceeds shall do so in a commercially reasonable manner.
(4) A secured party shall account to and pay a debtor for
any surplus, and the obligor is liable for any deficiency.
(b) No surplus or deficiency in sales of certain rights
to payment. If the underlying transaction is a sale of
accounts, chattel paper, payment intangibles, or promissory
notes, the debtor is not entitled to any surplus, and the obligor
is not liable for any deficiency. [2001 c 32 § 41; 2000 c 250
§ 9A-608.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-609
62A.9A-609 Secured party's right to take possession
after default. (a) Possession; rendering equipment unusable; disposition on debtor's premises. After default, a
secured party:
(1) May take possession of the collateral; and
(2) Without removal, may render equipment unusable
and dispose of collateral on a debtor's premises under RCW
62A.9A-610.
(b) Judicial and nonjudicial process. A secured party
may proceed under subsection (a) of this section:
(1) Pursuant to judicial process; or
(2) Without judicial process, if it proceeds without
breach of the peace.
(c) Assembly of collateral. If so agreed, and in any
event after default, a secured party may require the debtor to
assemble the collateral and make it available to the secured
party at a place to be designated by the secured party which is
reasonably convenient to both parties. [2000 c 250 § 9A609.]
[Title 62A RCW—page 153]
62A.9A-610
Title 62A RCW: Uniform Commercial Code
62A.9A-610 Disposition of collateral after default.
(a) Disposition after default. After default, a secured party
may sell, lease, license, or otherwise dispose of any or all of
the collateral in its present condition or following any commercially reasonable preparation or processing.
(b) Commercially reasonable disposition. Every
aspect of a disposition of collateral, including the method,
manner, time, place, and other terms, must be commercially
reasonable. If commercially reasonable, a secured party may
dispose of collateral by public or private proceedings, by one
or more contracts, as a unit or in parcels, and at any time and
place and on any terms.
(c) Purchase by secured party. A secured party may
purchase collateral:
(1) At a public disposition; or
(2) At a private disposition only if the collateral is of a
kind that is customarily sold on a recognized market or the
subject of widely distributed standard price quotations.
(d) Warranties on disposition. A contract for sale,
lease, license, or other disposition includes the warranties
relating to title, possession, quiet enjoyment, and the like
which by operation of law accompany a voluntary disposition
of property of the kind subject to the contract.
(e) Disclaimer of warranties. A secured party may disclaim or modify warranties under subsection (d) of this section:
(1) In a manner that would be effective to disclaim or
modify the warranties in a voluntary disposition of property
of the kind subject to the contract of disposition; or
(2) By communicating to the purchaser a record evidencing the contract for disposition and including an express disclaimer or modification of the warranties.
(f) Record sufficient to disclaim warranties. A record
is sufficient to disclaim under subsection (e) of this section all
warranties included under subsection (d) of this section if it
indicates "There is no warranty relating to title, possession,
quiet enjoyment, or the like in this disposition" or uses words
of similar import. [2000 c 250 § 9A-610.]
62A.9A-610
62A.9A-611 Notification before disposition of collateral. (a) "Notification date." In this section, "notification
date" means the earlier of the date on which:
(1) A secured party sends to the debtor and any secondary obligor an authenticated notification of disposition; or
(2) The debtor and any secondary obligor waive the right
to notification.
(b) Notification of disposition required. Except as otherwise provided in subsection (d) of this section, a secured
party that disposes of collateral under RCW 62A.9A-610
shall send to the persons specified in subsection (c) of this
section a reasonable authenticated notification of disposition.
(c) Persons to be notified. To comply with subsection
(b) of this section, the secured party shall send an authenticated notification of disposition to:
(1) The debtor;
(2) Any secondary obligor; and
(3) If the collateral is other than consumer goods:
(A) Any other secured party or lienholder that, ten days
before the notification date, held a security interest in or other
lien on the collateral perfected by the filing of a financing
statement that:
62A.9A-611
[Title 62A RCW—page 154]
(i) Identified the collateral;
(ii) Was indexed under the debtor's name as of that date;
and
(iii) Was filed in the office in which to file a financing
statement against the debtor covering the collateral as of that
date; and
(B) Any other secured party that, ten days before the
notification date, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty
described in RCW 62A.9A-311(a).
(d) Subsection (b) of this section inapplicable: Perishable collateral; recognized market. Subsection (b) of this
section does not apply if the collateral is perishable or threatens to decline speedily in value or is of a type customarily
sold on a recognized market.
(e) Compliance with subsection (c)(3)(A) of this section. A secured party complies with the requirement for notification prescribed by subsection (c)(3)(A) of this section if:
(1) Not later than twenty days or earlier than thirty days
before the notification date, the secured party requests, in a
commercially reasonable manner, information concerning
financing statements indexed under the debtor's name in the
office indicated in subsection (c)(3)(A) of this section; and
(2) Before the notification date, the secured party:
(A) Did not receive a response to the request for information; or
(B) Received a response to the request for information
and sent an authenticated notification of disposition to each
secured party or other lienholder named in that response
whose financing statement covered the collateral. [2000 c
250 § 9A-611.]
62A.9A-612
62A.9A-612 Timeliness of notification before disposition of collateral. (a) Reasonable time is question of fact.
Except as otherwise provided in subsection (b) of this section, whether a notification is sent within a reasonable time is
a question of fact.
(b) Ten-day period sufficient in nonconsumer transaction. In a transaction other than a consumer transaction, a
notification of disposition sent after default and ten days or
more before the earliest time of disposition set forth in the
notification is sent within a reasonable time before the disposition. [2000 c 250 § 9A-612.]
62A.9A-613
62A.9A-613 Contents and form of notification before
disposition of collateral: General. Except in a consumergoods transaction, the following rules apply:
(1) The contents of a notification of disposition are sufficient if the notification:
(A) Describes the debtor and the secured party;
(B) Describes the collateral that is the subject of the
intended disposition;
(C) States the method of intended disposition;
(D) States that the debtor is entitled to an accounting of
the unpaid indebtedness and states the charge, if any, for an
accounting; and
(E) States the time and place of a public disposition or
the time after which any other disposition is to be made.
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
(2) Whether the contents of a notification that lacks any
of the information specified in subsection (1) of this section
are nevertheless sufficient is a question of fact.
(3) The contents of a notification providing substantially
the information specified in subsection (1) of this section are
sufficient, even if the notification includes:
(A) Information not specified by subsection (1) of this
section; or
(B) Minor errors that are not seriously misleading.
(4) A particular phrasing of the notification is not
required.
(5) The following form of notification and the form
appearing in RCW 62A.9A-614(3), when completed, each
provides sufficient information:
NOTIFICATION OF DISPOSITION
OF COLLATERAL
To: [Name of debtor, obligor, or other person to which
the notification is sent]
From:
[Name, address, and telephone number of
secured party]
Name of Debtor(s): [Include only if debtor(s) are not
an addressee]
[For a public disposition:]
We will sell [or lease or license, as applicable] the
[describe collateral] [to the highest qualified bidder] in
public as follows:
Day and Date:
Time:
Place:
[For a private disposition:]
We will sell [or lease or license, as applicable] the
[describe collateral] privately sometime after [day and
date] .
You are entitled to an accounting of the unpaid indebtedness secured by the property that we intend to sell [or lease or
license, as applicable] [for a charge of $
]. You may
request an accounting by calling us at [telephone
number] .
[2001 c 32 § 42; 2000 c 250 § 9A-613.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-614
62A.9A-614 Contents and form of notification before
disposition of collateral: Consumer-goods transaction. In
a consumer-goods transaction, the following rules apply:
(1) A notification of disposition must provide the following information:
(A) The information specified in RCW 62A.9A-613(1);
(B) A description of any liability for a deficiency of the
person to which the notification is sent;
(C) A telephone number from which the amount that
must be paid to the secured party to redeem the collateral
under RCW 62A.9A-623 is available; and
(D) A telephone number or mailing address from which
additional information concerning the disposition and the
obligation secured is available.
(2) A particular phrasing of the notification is not
required.
(2004 Ed.)
62A.9A-614
(3) The following form of notification, when completed,
provides sufficient information:
[Name and address of secured party]
[Date]
NOTICE OF OUR PLAN TO SELL PROPERTY
[Name and address of any obligor who is also a debtor]
Subject: [Identification of Transaction]
We have your [describe collateral] , because you broke
promises in our agreement.
[For a public disposition:]
We will sell [describe collateral] at public sale. A sale
could include a lease or license. The sale will be held as follows:
Date:
Time:
Place:
You may attend the sale and bring bidders if you want.
[For a private disposition:]
We will sell [describe collateral] at private sale sometime
after [date] . A sale could include a lease or license.
The money that we get from the sale (after paying our costs)
will reduce the amount you owe. If we get less money than
you owe, you [will or will not, as applicable] still owe us
the difference. If we get more money than you owe, you will
get the extra money, unless we must pay it to someone else.
You can get the property back at any time before we sell it by
paying us the full amount you owe (not just the past due payments), including our expenses. To learn the exact amount
you must pay, call us at [telephone number] .
If you want us to explain to you in writing how we have figured the amount that you owe us, you may call us at
[telephone number] [or write us at [secured party's
address] ] and request a written explanation. [We will
charge you $
for the explanation if we sent you another
written explanation of the amount you owe us within the last
six months.]
If you need more information about the sale call us at
[telephone number] [or write us at [secured party's
address] ].
We are sending this notice to the following other people who
have an interest in [describe collateral] or who owe
money under your agreement:
[Names of all other debtors and obligors, if any]
(4) A notification in the form of [subsection] (3) of this
section is sufficient, even if additional information appears at
the end of the form.
(5) A notification in the form of [subsection] (3) of this
section is sufficient, even if it includes errors in information
not required by [subsection] (1) of this section, unless the
error is misleading with respect to rights arising under this
Article.
(6) If a notification under this section is not in the form
of [subsection] (3) of this section, law other than this Article
determines the effect of including information not required
by [subsection] (1) of this section. [2000 c 250 § 9A-614.]
[Title 62A RCW—page 155]
62A.9A-615
62A.9A-615
Title 62A RCW: Uniform Commercial Code
62A.9A-615 Application of proceeds of disposition;
liability for deficiency and right to surplus. (a) Application of proceeds. A secured party shall apply or pay over for
application the cash proceeds of disposition under RCW
62A.9A-610 in the following order to:
(1) The reasonable expenses of retaking, holding, preparing for disposition, processing, and disposing, and, to the
extent provided for by agreement and not prohibited by law,
reasonable attorneys' fees and legal expenses incurred by the
secured party;
(2) The satisfaction of obligations secured by the security interest or agricultural lien under which the disposition is
made;
(3) The satisfaction of obligations secured by any subordinate security interest in or other subordinate lien on the collateral if:
(A) The secured party receives from the holder of the
subordinate security interest or other lien an authenticated
demand for proceeds before distribution of the proceeds is
completed; and
(B) In a case in which a consignor has an interest in the
collateral, the subordinate security interest or other lien is
senior to the interest of the consignor; and
(4) A secured party that is a consignor of the collateral if
the secured party receives from the consignor an authenticated demand for proceeds before distribution of the proceeds is completed.
(b) Proof of subordinate interest. If requested by a
secured party, a holder of a subordinate security interest or
other lien shall furnish reasonable proof of the interest or lien
within a reasonable time. Unless the holder does so, the
secured party need not comply with the holder's demand
under subsection (a)(3) of this section.
(c) Application of noncash proceeds. A secured party
need not apply or pay over for application noncash proceeds
of disposition under RCW 62A.9A-610 unless the failure to
do so would be commercially unreasonable. A secured party
that applies or pays over for application noncash proceeds
shall do so in a commercially reasonable manner.
(d) Surplus or deficiency if obligation secured. If the
security interest under which a disposition is made secures
payment or performance of an obligation, after making the
payments and applications required by subsection (a) of this
section and permitted by subsection (c) of this section:
(1) Unless subsection (a)(4) of this section requires the
secured party to apply or pay over cash proceeds to a consignor, the secured party shall account to and pay a debtor for
any surplus; and
(2) The obligor is liable for any deficiency.
(e) No surplus or deficiency in sales of certain rights
to payment. If the underlying transaction is a sale of
accounts, chattel paper, payment intangibles, or promissory
notes:
(1) The debtor is not entitled to any surplus; and
(2) The obligor is not liable for any deficiency.
(f) [Reserved]
(g) Cash proceeds received by junior secured party.
A secured party that receives cash proceeds of a disposition
in good faith and without knowledge that the receipt violates
the rights of the holder of a security interest or other lien that
[Title 62A RCW—page 156]
is not subordinate to the security interest or agricultural lien
under which the disposition is made:
(1) Takes the cash proceeds free of the security interest
or other lien;
(2) Is not obligated to apply the proceeds of the disposition to the satisfaction of obligations secured by the security
interest or other lien; and
(3) Is not obligated to account to or pay the holder of the
security interest or other lien for any surplus. [2001 c 32 §
43; 2000 c 250 § 9A-615.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-616
62A.9A-616 Explanation of calculation of surplus or
deficiency. (a) Definitions. In this section:
(1) "Explanation" means a writing that:
(A) States the amount of the surplus or deficiency;
(B) Provides an explanation in accordance with subsection (c) of this section of how the secured party calculated the
surplus or deficiency;
(C) States, if applicable, that future debits, credits,
charges, including additional credit service charges or interest, rebates, and expenses may affect the amount of the surplus or deficiency; and
(D) Provides a telephone number or mailing address
from which additional information concerning the transaction is available.
(2) "Request" means a record:
(A) Authenticated by a debtor or consumer obligor;
(B) Requesting that the recipient provide an explanation;
and
(C) Sent after disposition of the collateral under RCW
62A.9A-610.
(b) Explanation of calculation. In a consumer-goods
transaction in which the debtor is entitled to a surplus or a
consumer obligor is liable for a deficiency under RCW
62A.9A-615, the secured party shall:
(1) Send an explanation to the debtor or consumer obligor, as applicable, after the disposition and:
(A) Before or when the secured party accounts to the
debtor and pays any surplus or first makes written demand on
the consumer obligor after the disposition for payment of the
deficiency; and
(B) Within fourteen days after receipt of a request; or
(2) In the case of a consumer obligor who is liable for a
deficiency, within fourteen days after receipt of a request,
send to the consumer obligor a record waiving the secured
party's right to a deficiency.
(c) Required information. To comply with subsection
(a)(1)(B) of this section, a writing must provide the following
information in the following order:
(1) The aggregate amount of obligations secured by the
security interest under which the disposition was made, and,
if the amount reflects a rebate of unearned interest or credit
service charge, an indication of that fact, calculated as of a
specified date:
(A) If the secured party takes or receives possession of
the collateral after default, not more than thirty-five days
before the secured party takes or receives possession; or
(B) If the secured party takes or receives possession of
the collateral before default or does not take possession of the
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
collateral, not more than thirty-five days before the disposition;
(2) The amount of proceeds of the disposition;
(3) The aggregate amount of the obligations after deducting the amount of proceeds;
(4) The amount, in the aggregate or by type, and types of
expenses, including expenses of retaking, holding, preparing
for disposition, processing, and disposing of the collateral,
and attorneys' fees secured by the collateral which are known
to the secured party and relate to the current disposition;
(5) The amount, in the aggregate or by type, and types of
credits, including rebates of interest or credit service charges,
to which the obligor is known to be entitled and which are not
reflected in the amount in (1) of this subsection; and
(6) The amount of the surplus or deficiency.
(d) Substantial compliance. A particular phrasing of
the explanation is not required. An explanation complying
substantially with the requirements of subsection (a) of this
section is sufficient, even if it includes minor errors that are
not seriously misleading.
(e) Charges for responses. A debtor or consumer obligor is entitled without charge to one response to a request
under this section during any six-month period in which the
secured party did not send to the debtor or consumer obligor
an explanation pursuant to subsection (b)(1) of this section.
The secured party may require payment of a charge not
exceeding twenty-five dollars for each additional response.
[2000 c 250 § 9A-616.]
62A.9A-617
62A.9A-617 Rights of transferee of collateral. (a)
Effects of disposition. A secured party's disposition of collateral after default:
(1) Transfers to a transferee for value all of the debtor's
rights in the collateral;
(2) Discharges the security interest under which the disposition is made; and
(3) Discharges any subordinate security interest or other
subordinate lien.
(b) Rights of good-faith transferee. A transferee that
acts in good faith takes free of the rights and interests
described in subsection (a) of this section, even if the secured
party fails to comply with this Article or the requirements of
any judicial proceeding.
(c) Rights of other transferee. If a transferee does not
take free of the rights and interests described in subsection (a)
of this section, the transferee takes the collateral subject to:
(1) The debtor's rights in the collateral;
(2) The security interest or agricultural lien under which
the disposition is made; and
(3) Any other security interest or other lien. [2000 c 250
§ 9A-617.]
62A.9A-618
62A.9A-618 Rights and duties of certain secondary
obligors. (a) Rights and duties of secondary obligor. A
secondary obligor acquires the rights and becomes obligated
to perform the duties of the secured party after the secondary
obligor:
(1) Receives an assignment of a secured obligation from
the secured party;
(2004 Ed.)
62A.9A-620
(2) Receives a transfer of collateral from the secured
party and agrees to accept the rights and assume the duties of
the secured party; or
(3) Is subrogated to the rights of a secured party with
respect to collateral.
(b) Effect of assignment, transfer, or subrogation. An
assignment, transfer, or subrogation described in subsection
(a) of this section:
(1) Is not a disposition of collateral under RCW
62A.9A-610; and
(2) Relieves the secured party of further duties under this
Article. [2000 c 250 § 9A-618.]
62A.9A-619
62A.9A-619 Transfer of record or legal title. (a)
"Transfer statement." In this section, "transfer statement"
means a record authenticated by a secured party stating:
(1) That the debtor has defaulted in connection with an
obligation secured by specified collateral;
(2) That the secured party has exercised its post-default
remedies with respect to the collateral;
(3) That, by reason of the exercise, a transferee has
acquired the rights of the debtor in the collateral; and
(4) The name and mailing address of the secured party,
debtor, and transferee.
(b) Effect of transfer statement. A transfer statement
entitles the transferee to the transfer of record of all rights of
the debtor in the collateral specified in the statement in any
official filing, recording, registration, or certificate-of-title
system covering the collateral. If a transfer statement is presented with the applicable fee and request form to the official
or office responsible for maintaining the system, the official
or office shall:
(1) Accept the transfer statement;
(2) Promptly amend its records to reflect the transfer;
and
(3) If applicable, issue a new appropriate certificate of
title in the name of the transferee.
(c) Transfer not a disposition; no relief of secured
party's duties. A transfer of the record or legal title to collateral to a secured party under subsection (b) of this section
or otherwise is not of itself a disposition of collateral under
this Article and does not of itself relieve the secured party of
its duties under this Article. [2000 c 250 § 9A-619.]
62A.9A-620
62A.9A-620 Acceptance of collateral in full or partial
satisfaction of obligation; compulsory disposition of collateral. (a) Conditions to acceptance in satisfaction. A
secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:
(1) The debtor consents to the acceptance under subsection (c) of this section;
(2) The secured party does not receive, within the time
set forth in subsection (d) of this section, a notification of
objection to the proposal authenticated by:
(A) A person to which the secured party was required to
send a proposal under RCW 62A.9A-621; or
(B) Any other person, other than the debtor, holding an
interest in the collateral subordinate to the security interest
that is the subject of the proposal; and
[Title 62A RCW—page 157]
62A.9A-621
Title 62A RCW: Uniform Commercial Code
(3) Subsection (e) of this section does not require the
secured party to dispose of the collateral or the debtor waives
the requirement pursuant to RCW 62A.9A-624.
(b) Purported acceptance ineffective. A purported or
apparent acceptance of collateral under this section is ineffective unless:
(1) The secured party consents to the acceptance in an
authenticated record or sends a proposal to the debtor; and
(2) The conditions of subsection (a) of this section are
met.
(c) Debtor's consent. For purposes of this section:
(1) A debtor consents to an acceptance of collateral in
partial satisfaction of the obligation it secures only if the
debtor agrees to the terms of the acceptance in a record
authenticated after default; and
(2) A debtor consents to an acceptance of collateral in
full satisfaction of the obligation it secures only if the debtor
agrees to the terms of the acceptance in a record authenticated
after default or the secured party:
(A) Sends to the debtor after default a proposal that is
unconditional or subject only to a condition that collateral not
in the possession of the secured party be preserved or maintained;
(B) In the proposal, proposes to accept collateral in full
satisfaction of the obligation it secures; and
(C) Does not receive a notification of objection authenticated by the debtor within twenty days after the proposal is
sent.
(d) Effectiveness of notification. To be effective under
subsection (a)(2) of this section, a notification of objection
must be received by the secured party:
(1) In the case of a person to which the proposal was sent
pursuant to RCW 62A.9A-621, within twenty days after notification was sent to that person; and
(2) In other cases:
(A) Within twenty days after the last notification was
sent pursuant to RCW 62A.9A-621; or
(B) If a notification was not sent, before the debtor consents to the acceptance under subsection (c) of this section.
(e) Mandatory disposition of consumer goods. A
secured party that has taken possession of collateral shall dispose of the collateral pursuant to RCW 62A.9A-610 within
the time specified in subsection (f) of this section if:
(1) Sixty percent of the cash price has been paid in the
case of a purchase-money security interest in consumer
goods; or
(2) Sixty percent of the principal amount of the obligation secured has been paid in the case of a nonpurchasemoney security interest in consumer goods.
(f) Compliance with mandatory disposition requirement. To comply with subsection (e) of this section, the
secured party shall dispose of the collateral:
(1) Within ninety days after taking possession; or
(2) Within any longer period to which the debtor and all
secondary obligors have agreed in an agreement to that effect
entered into and authenticated after default. [2000 c 250 §
9A-620.]
62A.9A-621
62A.9A-621 Notification of proposal to accept collateral. (a) Persons to which proposal to be sent. A secured
[Title 62A RCW—page 158]
party that desires to accept collateral in full or partial satisfaction of the obligation it secures shall send its proposal to:
(1) Any other secured party or lienholder that, ten days
before the debtor consented to the acceptance, held a security
interest in or other lien on the collateral perfected by the filing of a financing statement that:
(A) Identified the collateral;
(B) Was indexed under the debtor's name as of that date;
and
(C) Was filed in the office or offices in which to file a
financing statement against the debtor covering the collateral
as of that date; and
(2) Any other secured party that, ten days before the
debtor consented to the acceptance, held a security interest in
the collateral perfected by compliance with a statute, regulation, or treaty described in RCW 62A.9A-311(a).
(b) Proposal to be sent to secondary obligor in partial
satisfaction. A secured party that desires to accept collateral
in partial satisfaction of the obligation it secures shall send its
proposal to any secondary obligor in addition to the persons
described in subsection (a) of this section. [2000 c 250 § 9A621.]
62A.9A-622
62A.9A-622 Effect of acceptance of collateral. (a)
Effect of acceptance. A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures:
(1) Discharges the obligation to the extent consented to
by the debtor;
(2) Transfers to the secured party all of a debtor's rights
in the collateral;
(3) Discharges the security interest or agricultural lien
that is the subject of the debtor's consent and any subordinate
security interest or other subordinate lien; and
(4) Terminates any other subordinate interest.
(b) Discharge of subordinate interest notwithstanding noncompliance. A subordinate interest is discharged or
terminated under subsection (a) of this section, even if the
secured party fails to comply with this Article. [2000 c 250 §
9A-622.]
62A.9A-623
62A.9A-623 Right to redeem collateral. (a) Persons
that may redeem. A debtor, any secondary obligor, or any
other secured party or lienholder may redeem collateral.
(b) Requirements for redemption. To redeem collateral, a person shall tender:
(1) Fulfillment of all obligations secured by the collateral; and
(2) The reasonable expenses and attorneys' fees
described in RCW 62A.9A-615(a)(1).
(c) When redemption may occur. A redemption may
occur at any time before a secured party:
(1) Has collected collateral under RCW 62A.9A-607;
(2) Has disposed of collateral or entered into a contract
for its disposition under RCW 62A.9A-610; or
(3) Has accepted collateral in full or partial satisfaction
of the obligation it secures under RCW 62A.9A-622. [2000
c 250 § 9A-623.]
62A.9A-624
62A.9A-624 Waiver. (a) Waiver of disposition notification. A debtor may waive the right to notification of dispo(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
sition of collateral under RCW 62A.9A-611 only by an
agreement to that effect entered into and authenticated after
default.
(b) Waiver of mandatory disposition. A debtor may
waive the right to require disposition of collateral under
RCW 62A.9A-620(e) only by an agreement to that effect
entered into and authenticated after default.
(c) Waiver of redemption right. Except in a consumergoods transaction, a debtor or secondary obligor may waive
the right to redeem collateral under RCW 62A.9A-623 only
by an agreement to that effect entered into and authenticated
after default. [2000 c 250 § 9A-624.]
62A.9A-625
62A.9A-625 Remedies for secured party's failure to
comply with Article. (a) Judicial orders concerning noncompliance. If it is established that a secured party is not
proceeding in accordance with this Article, a court may order
or restrain collection, enforcement, or disposition of collateral on appropriate terms and conditions.
(b) Damages for noncompliance. Subject to subsections (c), (d), and (f) of this section, a person is liable for damages in the amount of any loss caused by a failure to comply
with this Article or by filing a false statement under RCW
62A.9A-607(b) or 62A.9A-619. Loss caused by a failure to
comply may include loss resulting from the debtor's inability
to obtain, or increased costs of, alternative financing.
(c) Persons entitled to recover damages; statutory
damages in consumer-goods transaction. Except as otherwise provided in RCW 62A.9A-628:
(1) A person that, at the time of the failure, was a debtor,
was an obligor, or held a security interest in or other lien on
the collateral may recover damages under subsection (b) of
this section for its loss; and
(2) If the collateral is consumer goods, a person that was
a debtor or a secondary obligor at the time a secured party
failed to comply with this part may recover for that failure in
any event an amount not less than the credit service charge
plus ten percent of the principal amount of the obligation or
the time-price differential plus ten percent of the cash price.
(d) Recovery when deficiency eliminated or reduced.
A debtor whose deficiency is eliminated under RCW
62A.9A-626 may recover damages for the loss of any surplus. However, a debtor or secondary obligor may not
recover under subsection (b) or (c)(2) of this section for noncompliance with the provisions of this part relating to collection, enforcement, disposition, or acceptance to the extent
that its deficiency is eliminated or reduced under RCW
62A.9A-626.
(e) Statutory damages: Noncompliance with specified provisions. In addition to any damages recoverable
under subsection (b) of this section, the debtor, consumer
obligor, or person named as a debtor in a filed record, as
applicable, may recover five hundred dollars in each case
from a person that:
(1) Fails to comply with RCW 62A.9A-208;
(2) Fails to comply with RCW 62A.9A-209;
(3) Files a record that the person is not entitled to file
under RCW 62A.9A-509(a);
(4) Fails to cause the secured party of record to file or
send a termination statement as required by RCW
(2004 Ed.)
62A.9A-627
62A.9A-513 (a) or (c) within twenty days after the secured
party receives an authenticated demand from a debtor;
(5) Fails to comply with RCW 62A.9A-616(b)(1) and
whose failure is part of a pattern, or consistent with a practice, of noncompliance; or
(6) Fails to comply with RCW 62A.9A-616(b)(2).
(f) Statutory damages: Noncompliance with RCW
62A.9A-210. A debtor or consumer obligor may recover
damages under subsection (b) of this section and, in addition,
five hundred dollars in each case from a person that, without
reasonable cause, fails to comply with a request under RCW
62A.9A-2 10. A recipient o f a request under RCW
62A.9A-210 which never claimed an interest in the collateral
or obligations that are the subject of a request under RCW
62A.9A-210 has a reasonable excuse for failure to comply
with the request within the meaning of this subsection.
(g) Limitation of security interest: Noncompliance
with RCW 62A.9A-210. If a secured party fails to comply
with a request regarding a list of collateral or a statement of
account under RCW 62A.9A-210, the secured party may
claim a security interest only as shown in the list or statement
included in the request as against a person that is reasonably
misled by the failure. [2001 c 32 § 44; 2000 c 250 § 9A-625.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-626
62A.9A-626 Action in which deficiency or surplus is
in issue. (a) Applicable rules if amount of deficiency or
surplus in issue. In an action arising from a transaction in
which the amount of a deficiency or surplus is in issue, the
following rules apply:
(1) A secured party need not prove compliance with the
provisions of this part relating to collection, enforcement,
disposition, or acceptance unless the debtor or a secondary
obligor places the secured party's compliance in issue.
(2) If the secured party's compliance is placed in issue,
the secured party has the burden of establishing that the collection, enforcement, disposition, or acceptance was conducted in accordance with this part.
(3) Except as otherwise provided in RCW 62A.9A-628,
if a secured party fails to prove that the collection, enforcement, disposition, or acceptance was conducted in accordance with the provisions of this part relating to collection,
enforcement, disposition, or acceptance, the liability of a
debtor or a secondary obligor for a deficiency is limited to an
amount by which the sum of the secured obligation,
expenses, and attorneys' fees exceeds the greater of:
(A) The proceeds of the collection, enforcement, disposition, or acceptance; or
(B) The amount of proceeds that would have been realized had the noncomplying secured party proceeded in accordance with the provisions of this part relating to collection,
enforcement, disposition, or acceptance.
(4) For purposes of (3)(B) of this subsection, the amount
of proceeds that would have been realized is equal to the sum
of the secured obligation, expenses, and attorneys' fees unless
the secured party proves that the amount is less than that sum.
(b) [Reserved] [2000 c 250 § 9A-626.]
62A.9A-627
62A.9A-627 Determination of whether conduct was
commercially reasonable. (a) Greater amount obtainable
[Title 62A RCW—page 159]
62A.9A-628
Title 62A RCW: Uniform Commercial Code
under other circumstances; no preclusion of commercial
reasonableness. The fact that a greater amount could have
been obtained by a collection, enforcement, disposition, or
acceptance at a different time or in a different method from
that selected by the secured party is not of itself sufficient to
preclude the secured party from establishing that the collection, enforcement, disposition, or acceptance was made in a
commercially reasonable manner.
(b) Dispositions that are commercially reasonable. A
disposition of collateral is made in a commercially reasonable manner if the disposition is made:
(1) In the usual manner on any recognized market;
(2) At the price current in any recognized market at the
time of the disposition; or
(3) Otherwise in conformity with reasonable commercial
practices among dealers in the type of property that was the
subject of the disposition.
(c) Approval by court or on behalf of creditors. A
collection, enforcement, disposition, or acceptance is commercially reasonable if it has been approved:
(1) In a judicial proceeding;
(2) By a bona fide creditors' committee;
(3) By a representative of creditors; or
(4) By an assignee for the benefit of creditors.
(d) Approval under subsection (c) of this section not
necessary; absence of approval has no effect. Approval
under subsection (c) of this section need not be obtained, and
lack of approval does not mean that the collection, enforcement, disposition, or acceptance is not commercially reasonable. [2000 c 250 § 9A-627.]
62A.9A-628 Nonliability and limitation on liability of
secured party; liability of secondary obligor. (a) Limitation of liability of secured party for noncompliance with
article. Unless a secured party knows that a person is a
debtor or obligor, knows the identity of the person, and
knows how to communicate with the person:
(1) The secured party is not liable to the person, or to a
secured party or lienholder that has filed a financing statement against the person, for failure to comply with this Article; and
(2) The secured party's failure to comply with this Article does not affect the liability of the person for a deficiency.
(b) Limitation of liability based on status as secured
party. A secured party is not liable because of its status as
secured party:
(1) To a person that is a debtor or obligor, unless the
secured party knows:
(A) That the person is a debtor or obligor;
(B) The identity of the person; and
(C) How to communicate with the person; or
(2) To a secured party or lienholder that has filed a
financing statement against a person, unless the secured party
knows:
(A) That the person is a debtor; and
(B) The identity of the person.
(c) Limitation of liability if reasonable belief that
transaction not a consumer-goods transaction or consumer transaction. A secured party is not liable to any person, and a person's liability for a deficiency is not affected,
because of any act or omission arising out of the secured
62A.9A-628
[Title 62A RCW—page 160]
party's reasonable belief that a transaction is not a consumergoods transaction or a consumer transaction or that goods are
not consumer goods, if the secured party's belief is based on
its reasonable reliance on:
(1) A debtor's representation concerning the purpose for
which collateral was to be used, acquired, or held; or
(2) An obligor's representation concerning the purpose
for which a secured obligation was incurred.
(d) Limitation of liability for statutory damages. A
secured party is not liable to any person under RCW
62A.9A-625(c)(2) for its failure to comply with RCW
62A.9A-616.
(e) Limitation of multiple liability for statutory damages. A secured party is not liable under RCW
62A.9A-625(c)(2) more than once with respect to any one
secured obligation. [2001 c 32 § 45; 2000 c 250 § 9A-628.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-701
62A.9A-701 Effective date—2000 c 250. This act
takes effect July 1, 2001. [2000 c 250 § 9A-701.]
62A.9A-702
62A.9A-702 Savings clause. (a) Preeffective-date
transactions or liens. Except as otherwise provided in this
section, Article 62A.9A RCW applies to a transaction or lien
within its scope, even if the transaction or lien was entered
into or created before July 1, 2001.
(b) Continuing validity. Except as otherwise provided
in subsection (c) of this section and RCW 62A.9A-703
through 62A.9A-709:
(1) Transactions and liens that were not governed by
*Article 62A.9 RCW, were validly entered into or created
before July 1, 2001, and would be subject to Article 62A.9A
RCW if they had been entered into or created after July 1,
2001, and the rights, duties, and interests flowing from those
transactions and liens remain valid after July 1, 2001; and
(2) The transactions and liens may be terminated, completed, consummated, and enforced as required or permitted
by Article 62A.9A RCW or by the law that otherwise would
apply if Article 62A.9A RCW had not taken effect.
(c) Preeffective-date proceedings. Article 62A.9A
RCW does not affect an action, case, or proceeding commenced before July 1, 2001. [2001 c 32 § 46; 2000 c 250 §
9A-702.]
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001.
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-703
62A.9A-703 Security interest perfected before effective date. (a) Continuing priority over lien creditor: Perfection requirements satisfied. A security interest that is
enforceable immediately before July 1, 2001, and would have
priority over the rights of a person that becomes a lien creditor at that time is a perfected security interest under Article
62A.9A RCW if, on or before July 1, 2001, the applicable
requirements for enforceability and perfection under Article
62A.9A RCW are satisfied without further action.
(b) Continuing priority over lien creditor: Perfection
requirements not satisfied. Except as otherwise provided in
RCW 62A.9A-705, if, immediately before July 1, 2001, a
security interest is enforceable and would have priority over
(2004 Ed.)
Secured Transactions; Sales of Accounts, Contract Rights and Chattel Paper
the rights of a person that becomes a lien creditor at that time,
but the applicable requirements for enforceability or perfection under Article 62A.9A RCW are not satisfied on or before
July 1, 2001, the security interest:
(1) Is a perfected security interest for one year after July
1, 2001;
(2) Remains enforceable thereafter only if the security
interest becomes enforceable under RCW 62A.9A-203
before the year expires; and
(3) Remains perfected thereafter only if the applicable
requirements for perfection under Article 62A.9A RCW are
satisfied before the year expires. [2001 c 32 § 47; 2000 c 250
§ 9A-703.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-704
62A.9A-704 Security interest unperfected before
effective date. A security interest that is enforceable immediately before July 1, 2001, but which would be subordinate
to the rights of a person that becomes a lien creditor at that
time:
(1) Remains an enforceable security interest for one year
after July 1, 2001;
(2) Remains enforceable thereafter if the security interest
becomes enforceable under RCW 62A.9A-203 on or before
July 1, 2001, or within one year thereafter; and
(3) Becomes perfected:
(A) Without further action, on July 1, 2001, if the applicable requirements for perfection under Article 62A.9A
RCW are satisfied before or at that time; or
(B) When the applicable requirements for perfection are
satisfied if the requirements are satisfied after that time.
[2001 c 32 § 48; 2000 c 250 § 9A-704.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-705
62A.9A-705 Effectiveness of action taken before
effective date. (a) Preeffective-date action; one-year perfection period unless reperfected. If action, other than the
filing of a financing statement, is taken before July 1, 2001,
and the action would have resulted in priority of a security
interest over the rights of a person that becomes a lien creditor had the security interest become enforceable before July
1, 2001, the action is effective to perfect a security interest
that attaches under Article 62A.9A RCW within one year
after July 1, 2001. An attached security interest becomes
unperfected one year after July 1, 2001, unless the security
interest becomes a perfected security interest under Article
62A.9A RCW before the expiration of that period.
(b) Preeffective-date filing. The filing of a financing
statement before July 1, 2001, is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under Article 62A.9A RCW.
(c) Preeffective-date filing in jurisdiction formerly
governing perfection. Article 62A.9A RCW does not render ineffective an effective financing statement that, before
July 1, 2001, is filed and satisfies the applicable requirements
for perfection under the law of the jurisdiction governing perfection as provided in former *RCW 62A.9-103. However,
except as otherwise provided in subsections (d) and (e) of this
section and RCW 62A.9A-706, the financing statement
ceases to be effective at the earlier of:
(2004 Ed.)
62A.9A-706
(1) The time the financing statement would have ceased
to be effective under the law of the jurisdiction in which it is
filed; or
(2) June 30, 2006.
(d) Continuation statement. The filing of a continuation statement after July 1, 2001, does not continue the effectiveness of the financing statement filed before July 1, 2001.
However, upon the timely filing of a continuation statement
after July 1, 2001, and in accordance with the law of the jurisdiction governing perfection as provided in Part 3, the effectiveness of a financing statement filed in the same office in
that jurisdiction before July 1, 2001, continues for the period
provided by the law of that jurisdiction.
(e) Application of subsection (c)(2) of this section to
transmitting utility financing statement. Subsection (c)(2)
of this section applies to a financing statement that, before
July 1, 2001, is filed against a transmitting utility and satisfies
the applicable requirements for perfection under the law of
the jurisdiction governing perfection as provided in former
*RCW 62A.9-103 only to the extent that Part 3 provides that
the law of a jurisdiction other than the jurisdiction in which
the financing statement is filed governs perfection of a security interest in collateral covered by the financing statement.
(f) Application of Part 5. A financing statement that
includes a financing statement filed before July 1, 2001, and
a continuation statement filed after July 1, 2001, is effective
only to the extent that it satisfies the requirements of Part 5
for an initial financing statement. [2001 c 32 § 49; 2000 c
250 § 9A-705.]
*Reviser's note: RCW 62A.9-103 was repealed by 2000 c 250 § 9A901, effective July 1, 2001.
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-706
62A.9A-706 When initial financing statement suffices to continue effectiveness of financing statement. (a)
Initial financing statement in lieu of continuation statement. The filing of an initial financing statement in the
office specified in RCW 62A.9A-501 continues the effectiveness of a financing statement filed before July 1, 2001, if:
(1) The filing of an initial financing statement in that
office would be effective to perfect a security interest under
Article 62A.9A RCW;
(2) The preeffective-date financing statement was filed
in an office in another state or another office in this state; and
(3) The initial financing statement satisfies subsection
(c) of this section.
(b) Period of continued effectiveness. The filing of an
initial financing statement under subsection (a) of this section
continues the effectiveness of the preeffective-date financing
statement:
(1) If the initial financing statement is filed before July 1,
2001, for the period provided in *RCW 62A.9-403 with
respect to a financing statement; and
(2) If the initial financing statement is filed after July 1,
2001, for the period provided in RCW 62A.9A-515 with
respect to an initial financing statement.
(c) Requirements for initial financing statement
under subsection (a) of this section. To be effective for purposes of subsection (a) of this section, an initial financing
statement must:
[Title 62A RCW—page 161]
62A.9A-707
Title 62A RCW: Uniform Commercial Code
(1) Satisfy the requirements of Part 5 for an initial
financing statement;
(2) Identify the preeffective-date financing statement by
indicating the office in which the financing statement was
filed and providing the dates of filing and file numbers, if
any, of the financing statement and of the most recent continuation statement filed with respect to the financing statement;
and
(3) Indicate that the preeffective-date financing statement remains effective. [2001 c 32 § 50; 2000 c 250 § 9A706.]
*Reviser's note: RCW 62A.9-403 was repealed by 2000 c 250 § 9A901, effective July 1, 2001.
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-707
62A.9A-707 Amendment of preeffective-date financing statement. (a) Preeffective-date financing statement.
In this section, "preeffective-date financing statement" means
a financing statement filed before July 1, 2001.
(b) Applicable law. On or after July 1, 2001, a person
may add or delete collateral covered by, continue or terminate the effectiveness of, or otherwise amend the information
provided in, a preeffective-date financing statement only in
accordance with the law of the jurisdiction governing perfection as provided in Part 3. However, the effectiveness of a
preeffective-date financing statement also may be terminated
in accordance with the law of the jurisdiction in which the
financing statement is filed.
(c) Method of amending: General rule. Except as otherwise provided in subsection (d) of this section, if the law of
this state governs perfection of a security interest, the information in a preeffective-date financing statement may be
amended on or after July 1, 2001, only if:
(1) The preeffective-date financing statement and an
amendment are filed in the office specified in RCW 62A.9A501;
(2) An amendment is filed in the office specified in
RCW 62A.9A-501 concurrently with, or after the filing in
that office of, an initial financing statement that satisfies
RCW 62A.9A-706(c); or
(3) An initial financing statement that provides the information as amended and satisfies RCW 62A.9A-706(c) is
filed in the office specified in RCW 62A.9A-501.
(d) Method of amending: Continuation. If the law of
this state governs perfection of a security interest, the effectiveness of a preeffective-date financing statement may be
continued only under RCW 62A.9A-705 (d) and (f) or
62A.9A-706.
(e) Method of amending: Additional termination
rule. Whether or not the law of this state governs perfection
of a security interest, the effectiveness of a preeffective-date
financing statement filed in this state may be terminated on or
after July 1, 2001, by filing a termination statement in the
office in which the preeffective-date financing statement is
filed, unless an initial financing statement that satisfies RCW
62A.9A-706(c) has been filed in the office specified by the
law of the jurisdiction governing perfection as provided in
Part 3 as the office in which to file a financing statement.
[2001 c 32 § 51; 2000 c 250 § 9A-707.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
[Title 62A RCW—page 162]
62A.9A-708
62A.9A-708 Persons entitled to file initial financing
statement or continuation statement. A person may file an
initial financing statement or a continuation statement under
this part if:
(1) The secured party of record authorizes the filing; and
(2) The filing is necessary under this part:
(A) To continue the effectiveness of a financing statement filed before July 1, 2001; or
(B) To perfect or continue the perfection of a security
interest. [2001 c 32 § 52; 2000 c 250 § 9A-708.]
Effective date—2001 c 32: See note following RCW 62A.9A-102.
62A.9A-709
62A.9A-709 Priority. (a) Law governing priority.
Article 62A.9A RCW determines the priority of conflicting
claims to collateral. However, if the relative priorities of the
claims were established before July 1, 2001, *Article 62A.9
RCW determines priority.
(b) Priority if security interest becomes enforceable
un der RCW 6 2A .9 A-20 3 . F o r pu r p o se s o f R CW
62A.9A-322(a), the priority of a security interest that
becomes enforceable under RCW 62A.9A-203 dates from
July 1, 2001, if the security interest is perfected under Article
62A.9A RCW by the filing of a financing statement before
July 1, 2001, which would not have been effective to perfect
the security interest under *Article 62A.9 RCW. This subsection does not apply to conflicting security interests each of
which is perfected by the filing of such a financing statement.
[2001 c 32 § 53.]
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001.
Effective date—2001 c 32: See note following RCW 62A.9A-102.
Article 10
Article 10
EFFECTIVE DATE AND REPEALER
Sections
62A.10-101
62A.10-102
62A.10-103
62A.10-104
Effective date—1965 ex.s. c 157.
Specific repealer; provision for transition.
General repealer.
Laws not repealed.
62A.10-101
62A.10-101 Effective date—1965 ex.s. c 157. This
Title shall become effective at midnight on June 30, 1967. It
applies to transactions entered into and events occurring after
that date. [1965 ex.s. c 157 § 10-101.]
62A.10-102
62A.10-102 Specific repealer; provision for transition. (1) The following acts and all other acts and parts of
acts inconsistent herewith are hereby repealed:
(a)(i) RCW 22.04.010 through 22.04.610;
(ii) RCW 23.80.010 through 23.80.250;
(iii) RCW 30.16.020, 30.16.030, 30.16.040 and
30.16.050;
(iv) RCW 30.40.030, 30.40.040 and 30.40.050;
(v) RCW 30.52.010 through 30.52.160;
(vi) RCW 61.04.010 through 61.04.090;
(vii) RCW 61.08.010 through 61.08.120;
(viii) RCW 61.12.160;
(ix) RCW 61.16.040, 61.16.050 and 61.16.070;
(x) RCW 61.20.010 through 61.20.190;
(2004 Ed.)
Effective Date and Transition Provisions
(xi) RCW 62.01.001 through 62.01.196 and 62.98.010
through 62.98.050;
(xii) RCW 63.04.010 through 63.04.780;
(xiii) RCW 63.08.010 through 63.08.060;
(xiv) RCW 63.12.010 through 63.12.030;
(xv) RCW 63.16.010 through 63.16.900;
(xvi) RCW 65.08.010, 65.08.020 and 65.08.040; and
(xvii) RCW 81.32.010 through 81.32.561: PROVIDED,
That such repeal shall not affect the validity of sections
81.29.010 through 81.29.050, chapter 14, Laws of 1961
(RCW 81.29.010 through 81.29.050).
(b)(i) Chapter 99, Laws of 1913;
(ii) Chapter 100, Laws of 1939;
(iii) Section 4, chapter 106, Laws of 1959 and sections
30.16.020, 30.16.030, 30.16.040 and 30.16.050, chapter 33,
Laws of 1955;
(iv) Sections 30.40.030, 30.40.040 and 30.40.050, chapter 33, Laws of 1955;
(v) Section 3, chapter 194, Laws of 1963 and sections
30.52.010 through 30.52.160, chapter 33, Laws of 1955;
(vi) Section 11, chapter 263, Laws of 1959, section 3,
chapter 214, Laws of 1953, sections 1, 2 and 3, chapter 284,
Laws of 1943, section 1, chapter 76, Laws of 1943, section 1,
chapter 121, Laws of 1939, section 1, chapter 156, Laws of
1929, sections 1, 2, 3, 4, 5, 6 and 7, chapter 98, Laws of 1899,
sections 1986, 1987 and 1988, Code of 1881, section 1, page
104, Laws of 1879, section 1, page 286, Laws of 1877 and
section 1, page 43, Laws of 1875;
(vii) Sections 1989, 1990, 1991, 1992, 1993, 1994, 1995,
1996, 1997 and 1998, Code of 1881, sections 4, 5, 6, 7, 8, 9,
10, 11 and 12, pages 105 and 106, Laws of 1879 and sections
18, 19, 20, 22, 23, 24 and 28, page 47, Laws of 1875;
(viii) Sections 618 and 619, Code of 1881 and section
572, page 147, Laws of 1869;
(ix) Section 12, chapter 263, Laws of 1959, section 4,
chapter 214, Laws of 1953, section 4, chapter 284, Laws of
1943, sections 1 and 2, chapter 133, Laws of 1937 and sections 8, 9 and 11, chapter 98, Laws of 1899;
(x) Sections 1 and 2, chapter 249, Laws of 1957 and
chapter 71, Laws of 1943;
(xi) Sections 62.01.001 through 62.01.196 and
62.98.010 through 62.98.050, chapter 35, Laws of 1955;
(xii) Chapter 142, Laws of 1925 extraordinary session;
(xiii) Sections 1, 2, 3 and 4, chapter 247, Laws of 1953,
section 1, chapter 98, Laws of 1943, sections 1, 2, 3 and 4,
chapter 122, Laws of 1939 and sections 1, 2, 3 and 4, chapter
135, Laws of 1925 extraordinary session;
(xiv) Section 22, chapter 236, Laws of 1963, section 1,
chapter 159, Laws of 1961, sections 1 and 2, chapter 196,
Laws of 1937, sections 1 and 2, chapter 129, Laws of 1933,
section 1, chapter 120, Laws of 1925 extraordinary session,
section 1, chapter 95, Laws of 1915, sections 1 and 2, chapter
6, Laws of 1903 and sections 1 and 2, chapter 106, Laws of
1893;
(xv) Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12, chapter 8, Laws of 1947;
(xvi) Sections 1 and 2, chapter 72, Laws of 1899, section
2327, Code of 1881, section 4, page 413, Laws of 1863 and
section 4, page 404, Laws of 1854; and
(xvii) Chapter 159, Laws of 1915 and sections 81.32.011
through 81.32.561, chapter 14, Laws of 1961.
(2004 Ed.)
62A.11-103
(2) Transactions validly entered into before the effective
date specified in RCW 62A.10-101 and the rights, duties and
interests flowing from them remain valid thereafter and may
be terminated, completed, consummated or enforced as
required or permitted by any statute or other law amended or
repealed by this Title as though such repeal or amendment
had not occurred. [1965 ex.s. c 157 § 10-102.]
62A.10-103
62A.10-103 General repealer. Except as provided in
the following section, all acts and parts of acts inconsistent
with this Title are hereby repealed. [1965 ex.s. c 157 § 10103.]
62A.10-104
62A.10-104 Laws not repealed. The Article on Documents of Title (Article 7) does not repeal or modify any laws
prescribing the form or contents of documents of title or the
services or facilities to be afforded by bailees, or otherwise
regulating bailees' businesses in respects not specifically
dealt with herein; but the fact that such laws are violated does
not affect the status of a document of title which otherwise
complies with the definition of a document of title (RCW
62A.1-201). [1995 c 48 § 71; 1965 ex.s. c 157 § 10-104.]
Savings—1995 c 48: See RCW 62A.8-601.
Effective date—1995 c 48: See RCW 62A.11-113.
Article 11
EFFECTIVE DATE AND TRANSITION PROVISIONS
Article 11
Sections
62A.11-101
62A.11-102
62A.11-103
62A.11-104
62A.11-105
62A.11-106
62A.11-107
62A.11-108
62A.11-109
62A.11-110
62A.11-111
62A.11-112
62A.11-113
Effective date—1981 c 41.
Preservation of old transition provisions.
Transition to the Uniform Commercial Code as amended by
chapter 41, Laws of 1981; general rule.
Transition provision on change of requirement of filing.
Transition provision on change of place of filing.
Required refilings.
Transition provisions as to priorities.
Presumption that rule of law continues unchanged.
Effective financing statement; certificate by county auditor.
Effective date—1993 c 230.
Recovery of attorneys' fees.
Effective date—1993 c 229.
Effective date—1995 c 48.
Reviser's note: Throughout Article 11, "chapter 41, Laws of 1981" is a
translation of the term "this act."
62A.11-101
62A.11-101 Effective date—1981 c 41. This act shall
take effect at midnight on June 30, 1982. [1981 c 41 § 47.]
62A.11-102
62A.11-102 Preservation of old transition provisions.
The provisions of Article 10 shall continue to apply to the
Uniform Commercial Code as amended by chapter 41, Laws
of 1981 and for this purpose the Uniform Commercial Code
before midnight June 30, 1982 and the Uniform Commercial
Code as amended by chapter 41, Laws of 1981 shall be considered one continuous statute. [1981 c 41 § 38.]
Effective date—1981 c 41: See RCW 62A.11-101.
62A.11-103
62A.11-103 Transition to the Uniform Commercial
Code as amended by chapter 41, Laws of 1981; general
rule. Transactions validly entered into after June 30, 1967
and before midnight June 30, 1982, and which were subject
to the provisions of the Uniform Commercial Code as it
[Title 62A RCW—page 163]
62A.11-104
Title 62A RCW: Uniform Commercial Code
existed before midnight June 30, 1982 and which would be
subject to the Uniform Commercial Code as amended if they
had been entered into after midnight June 30, 1982 and the
rights, duties and interests flowing from such transactions
remain valid after midnight June 30, 1982 and may be terminated, completed, consummated or enforced as required or
permitted by the Uniform Commercial Code as amended by
chapter 41, Laws of 1981. Security interests arising out of
such transactions which are perfected by midnight June 30,
1982 shall remain perfected until they lapse as provided in
the Uniform Commercial Code as amended by chapter 41,
Laws of 1981, and may be continued as permitted by the Uniform Commercial Code as amended by chapter 41, Laws of
1981, except as stated in RCW 62A.11-105. [1981 c 41 §
39.]
Effective date—1981 c 41: See RCW 62A.11-101.
62A.11-104
62A.11-104 Transition provision on change of
requirement of filing. A security interest for the perfection
of which filing or the taking of possession was required under
the Uniform Commercial Code as it existed before midnight
June 30, 1982 and which attached prior to midnight June 30,
1982 but was not perfected shall be deemed perfected on
midnight June 30, 1982 if the Uniform Commercial Code as
amended by chapter 41, Laws of 1981 permits perfection
without filing or authorizes filing in the office or offices
where a prior ineffective filing was made. [1981 c 41 § 40.]
Effective date—1981 c 41: See RCW 62A.11-101.
62A.11-105
62A.11-105 Transition provision on change of place
of filing. (1) A financing statement or continuation statement
filed prior to midnight June 30, 1982 which shall not have
lapsed prior to midnight June 30, 1982, shall remain effective
for the period provided in the Uniform Commercial Code as
it existed before midnight June 30, 1982, but not less than
five years after the filing.
(2) With respect to any collateral acquired by the debtor
subsequent to midnight June 30, 1982, any effective financing statement or continuation statement described in this section shall apply only if the filing or filings are in the office or
offices that would be appropriate to perfect the security interests in the new collateral under chapter 41, Laws of 1981.
(3) The effectiveness of any financing statement or continuation statement filed prior to midnight June 30, 1982 may
be continued by a continuation statement as permitted by the
Uniform Commercial Code as amended by chapter 41, Laws
of 1981, except that if the Uniform Commercial Code as
amended by chapter 41, Laws of 1981 requires a filing in an
office where there was no previous financing statement, a
new financing statement conforming to RCW 62A.11-106
shall be filed in that office.
(4) If the record of a mortgage of real estate would have
been effective as a fixture filing of goods described therein if
the Uniform Commercial Code as amended by chapter 41,
Laws of 1981 had been in effect on the date of recording the
mortgage, the mortgage shall be deemed effective as a fixture
filing as to such goods under subsection (6) of *RCW 62A.9402 as amended by chapter 41, Laws of 1981 on midnight
June 30, 1982. [1981 c 41 § 41.]
[Title 62A RCW—page 164]
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001. For later enactment, see Article
62A.9A RCW.
Effective date—1981 c 41: See RCW 62A.11-101.
62A.11-106
62A.11-106 Required refilings. (1) If a security interest is perfected or has priority on midnight June 30, 1982, as
to all persons or as to certain persons without any filing or
recording, and if the filing of a financing statement would be
required for the perfection or priority of the security interest
against those persons under the Uniform Commercial Code
as amended by chapter 41, Laws of 1981, the perfection and
priority rights of the security interest continue until three
years after midnight June 30, 1982. The perfection will then
lapse unless a financing statement is filed as provided in subsection (4) or unless the security interest is perfected otherwise than by filing.
(2) If a security interest is perfected when the Uniform
Commercial Code as amended by chapter 41, Laws of 1981
takes effect under a law other than the Uniform Commercial
Code which requires no further filing, refiling or recording to
continue its perfection, perfection continues until and will
lapse three years after the Uniform Commercial Code as
amended by chapter 41, Laws of 1981 takes effect, unless a
financing statement is filed as provided in subsection (4) or
unless the security interest is perfected otherwise than by filing, or unless under subsection (3) of *RCW 62A.9-302 the
other law continues to govern filing.
(3) If a security interest is perfected by a filing, refiling
or recording under a law repealed by chapter 41, Laws of
1981 which required further filing, refiling or recording to
continue its perfection, perfection continues and will lapse on
the date provided by the law so repealed for such further filing, refiling or recording unless a financing statement is filed
as provided in subsection (4) or unless the security interest is
perfected otherwise than by filing.
(4) A financing statement may be filed within six months
before the perfection of a security interest would otherwise
lapse. Any such financing statement may be signed by either
the debtor or the secured party. It must identify the security
agreement, statement or notice (however denominated in any
statute or other law repealed or modified by chapter 41, Laws
of 1981), state the office where and the date when the last filing, refiling or recording, if any, was made with respect
thereto, and the filing number, if any, or book and page, if
any, of recording and further state that the security agreement, statement or notice, however denominated, in another
filing office under the Uniform Commercial Code or under
any statute or other law repealed or modified by chapter 41,
Laws of 1981 is still effective. *RCW 62A.9-401 and 62A.9103 determine the proper place to file such a financing statement. Except as specified in this subsection, the provisions of
*RCW 62A.9-403(3) for continuation statements apply to
such a financing statement. [1981 c 41 § 42.]
*Reviser's note: Article 62A.9 RCW was repealed in its entirety by
2000 c 250 § 9A-901, effective July 1, 2001. For later enactment, see Article
62A.9A RCW.
Effective date—1981 c 41: See RCW 62A.11-101.
62A.11-107
62A.11-107 Transition provisions as to priorities.
Except as otherwise provided in this article, the Uniform
(2004 Ed.)
Effective Date and Transition Provisions
62A.11-113
Commercial Code as it existed before midnight June 30, 1982
shall apply to any questions of priority if the positions of the
parties were fixed prior to midnight June 30, 1982. In other
cases questions of priority shall be determined by the Uniform Commercial Code as amended by chapter 41, Laws of
1981. [1981 c 41 § 43.]
Effective date—1981 c 41: See RCW 62A.11-101.
62A.11-108
62A.11-108 Presumption that rule of law continues
unchanged. Unless a change in law has clearly been made,
the provisions of the Uniform Commercial Code as amended
by chapter 41, Laws of 1981 shall be deemed declaratory of
the meaning of the Uniform Commercial Code as it existed
before midnight June 30, 1982. [1981 c 41 § 44.]
Effective date—1981 c 41: See RCW 62A.11-101.
62A.11-109
62A.11-109 Effective financing statement; certificate
by county auditor. From and after midnight June 30, 1982,
upon request of any person, the county auditor shall issue his
certificate showing whether there is on file with the county
auditor's office on the date and hour stated therein, any presently effective financing statement filed with the county auditor's office before midnight June 30, 1982, naming a particular debtor and any statement of assignment thereof and if
there is, giving the date and hour of filing of each such statement and the names and addresses of each secured party
therein. The uniform fee for such a certificate shall be four
dollars. Upon request the county auditor shall issue his certificate and shall furnish a copy of any filed financing statements or statements of assignment for a uniform fee of ten
dollars for each particular debtor's statements requested.
[1981 c 41 § 45.]
Effective date—1981 c 41: See RCW 62A.11-101.
62A.11-110
62A.11-110 Effective date—1993 c 230. This act shall
take effect July 1, 1994. [1993 c 230 § 2A-605.]
62A.11-111
62A.11-111 Recovery of attorneys' fees. No provision
in this act changes or modifies existing common law or other
law of Washington state concerning the recovery of attorneys' fees. [1993 c 229 § 119.]
62A.11-112
62A.11-112 Effective date—1993 c 229. This act shall
take effect July 1, 1994. [1993 c 229 § 120.]
62A.11-113
62A.11-113 Effective date—1995 c 48. This act is necessary for the immediate preservation of the public peace,
health, or safety, or support of the state government and its
existing public institutions, and shall take effect July 1, 1995.
[1995 c 48 § 72.]
Savings—1995 c 48: See RCW 62A.8-601.
(2004 Ed.)
[Title 62A RCW—page 165]
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